Matrix Funds Management

Matrix Funds Management

November 29, 2011 15:25 ET

Matrix Funds Management Announces Another Investment First in Canada

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 29, 2011) - Matrix Funds Management* launches the Matrix S&P/TSX Canadian Dividend Aristocrats Fund (Corporate Class) - the first corporate class fund to follow Canada's Dividend Growth benchmark from Standard & Poor's®.

The new Matrix S&P/TSX Canadian Dividend Aristocrats Fund (Corporate Class) is designed to closely match the returns and characteristics of the S&P/TSX Canadian Aristocrats Index, the leading benchmark of dividend growth in Canada. It follows companies who have increased ordinary cash dividends every year for at least five consecutive years.

The Fund combines the power of ETFs with the convenience and broad accessibility of mutual funds in a tax beneficial corporate class structure that also provides monthly income. "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," says David Levi, CEO. "Low government bond yields have created a global income crisis for investors. With higher yield from quality companies, this new dividend growth offering complements our existing line up of monthly income solutions."

Dividends are a BIG winner in Canada according to a 2011 research study. Over nearly a quarter century, Dividend Growers in Canada returned an average of 12.6% compared with 7.3% for the TSX Composite (all figures total return, from December 1986 to February 2011++).

The S&P/TSX Canadian Dividend Aristocrats Index is an investment strategy Matrix Funds Management considers a "smart indexing" solution. "The intelligence of this approach is simplicity. Based on our research, the fundamental factor of screening for companies that have increased cash dividends every year for at least the past 5 years has produced amazingly strong Top 10 results vs. over 300 funds in the Dividend and Income category over the same 5 year period," says Grahame Lyons, Managing Partner.

The Fund has low cost, portfolio transparency and tax efficiency which are common attributes of popular ETFs. "We feel this Fund will solve some trading related issues for securities licensed advisors (IIROC) and investment counsellors (ICPM)," adds 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.

Moreover, the tax deferral opportunity of a Corporate Class share structure means Investor's with taxable accounts can defer capital gains taxes that would otherwise have been payable on redemption if they are switching 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 over 350 Corporate Class funds, almost all using traditional active management. We see an opportunity to provide monthly income investors choice with this Standard and Poor's® index strategy," concludes Lyons.

++Equity Strategy, Stay Positive on Canada, RBC Dominion Securities Inc. March 2011

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. Management fees apply to the Fund which may lower returns of the Matrix S&P/TSX Canadian Dividend Aristocrats Fund (Corporate Class) as compared to the S&P/TSX Canadian Dividend Aristocrats Index. Please review the Fund(s) 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 of indices with higher dividend income. 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.

S&P® and Standard & Poor's® are trademarks of Standard & Poor's Financial Services LLC ("S&P"). These trademarks have been licensed for use by Matrix Management and sublicensed to Matrix S&P/TSX Canadian Dividend Aristocrats Fund (Corporate Class). TSX® is a trademark of TSX, Inc. and has been licensed for use by S&P. Matrix S&P/TSX Canadian Dividend Aristocrats Fund (Corporate Class) is not sponsored, endorsed, sold or promoted by S&P or TSX Inc. and neither S&P nor TSX Inc. make any representation regarding the advisability of investing in Matrix S&P/TSX Canadian Dividend Aristocrats Fund (Corporate Class). S&P and TSX Inc. make no representation or warranty, express or implied, regarding the advisability of investing in securities generally or in Matrix S&P/TSX Canadian Dividend Aristocrats Fund (Corporate Class) particularly or the ability of the S&P/TSX Canadian Dividend Aristocrats Index to track general market performance. Neither S&P nor TSX Inc. have any obligation or liability in connection with the administration, marketing or distribution of the Matrix S&P/TSX Canadian Dividend Aristocrats Fund (Corporate Class).

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