Vancouver-based Matrix Funds Management has launched Matrix S&P/TSX Canadian Dividend Aristocrats Fund (Corporate Class).
The new fund is the first corporate class fund to closely match the returns and characteristics of the S&P/TSX Canadian Aristocrats Index, the leading benchmark of dividend growth in Canada, Matrix says.
The index follows companies who have increased ordinary cash dividends every year for at least five consecutive years.
Matrix describes the fund as combining 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. It adds that the fund has low cost, portfolio transparency and tax efficiency which are common attributes of popular ETFs.
“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.”
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 five year period,” says Grahame Lyons, managing partner.
Matrix Funds Management, a division of Growth Works Capital Ltd., is a subsidiary of Matrix Asset Management Inc. (TSX:MTA).