Matrix Funds Management

Matrix Funds Management

November 25, 2011 09:00 ET

Matrix Funds Management Announces Another Investment First in Canada

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 25, 2011) - Matrix Funds Management* launches Canada's first dedicated covered call corporate class mutual fund.

"Following the successful launch of our Matrix Dow Jones Canada High Dividend 50 Fund (Corporate Class) earlier this week, we are pleased to introduce another first today, the Matrix Covered Call Canadian Banks Plus Fund (Corporate Class)," said David Levi, CEO. "The conservative options strategy of covered calls has been around a long time and is popular in exchange-traded products through closed-end funds and ETFs. We see a great opportunity to introduce this covered call option strategy to a broader audience in a traditional mutual fund with unique corporate class share benefits that also provides monthly income."

The Matrix Covered Call Canadian Banks Plus Fund (Corporate Class) is designed to receive dividend and option premium income by investing in dividend paying securities in the Canadian financial sector and employs a dynamic covered call option writing strategy. "The majority of the portfolio is invested in Canada's largest commercial banks because they are a key component and driver of our economy. They are respected globally for their relative financial strength and conservative approach," says Grahame Lyons, Managing Partner. "The call option premiums are expected to increase income generated in the fund, reduce volatility and provide some downside risk protection, which could really benefit investors in these uncertain market conditions," adds Lyons. The "Plus" comes from investments made in other Canadian financial sector dividend paying securities with the aim to further increase dividends, option premium income or long term capital appreciation.

Offering the Fund within a corporate class share structure also provides a tax deferral opportunity. Investors with taxable accounts can defer capital gains taxes that would otherwise have been payable on redemption if they switch into other Matrix corporate class funds. This can add significantly to investor returns after tax over time. "Our research indicates there are $44.7 billion in assets in 350+ Corporate Class funds, almost all using traditional active management," stated Lyons. "We saw an opportunity to provide investors with more choice and a proven investment strategy."

The Fund provides the common attributes and popular benefits of ETFs - low cost, portfolio transparency and tax efficiency - and makes them available to a broader audience. "Based on our research, this fund will solve some trading related issues for securities licensed advisors (IIROC) and investment counsellors (ICPM)," said Lyons. The product is also expected to meet demand from the larger body of mutual fund (MFDA) advisors who may also be insurance licensed advisors looking for these features in providing financial services to Canadians.

The Fund combines the power of ETFs with the convenience and broad accessibility of mutual funds in a tax beneficial corporate class structure. "This combination of desirable features has created a unique Canadian investment vehicle, allowing us to bring new choices based on sound investment principles to investors," Lyons adds.

About Matrix Funds Management

*Matrix Funds Management (a division of Growth Works Capital Ltd.) is the manager of the Matrix Funds and a subsidiary of Matrix Asset Management Inc. (TSX:MTA). Matrix provides diversified asset and wealth management for both individuals and institutional investors. Please visit for more information.

Matrix Funds are distributed through authorized investment dealers. Commissions, trailing commissions, management fees and expenses may be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance provides no assurance or indication of future performance. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. Please review the Funds prospectus carefully for important information before investing. The above contains "forward looking statements", including statements based on management's current beliefs and assumptions in respect to dividend income and covered call income strategies. Actual results may differ from those implied by such statements or information as a result of numerous known and unknown risks affecting the Fund, including general market and economic conditions, changes in dividend policy risk, and other risks referenced in the Fund's public disclosure record. Many of these risks are beyond the control of the Fund or its manager. Neither the Fund nor the manager assumes any obligation to update such statements or confirm the accuracy of such information.

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