Desjardins Funds is launching the new Desjardins Dividend Growth Fund, the fund family announced Monday. The new fund aims to combine tax efficiency with the lesser volatility provided by high dividend stock.

According to Desjardins Funds, the goal of the new fund is to generate income and provide capital growth. The composition of its portfolio is distinctive, in that it is solely comprised of common stock. Added to the selection of Canadian equity funds, the new fund can also hold a maximum of 30% in foreign equity. As a general rule, this portion will be acquired in industrial sectors that are less clearly represented on the Canadian stock exchange, Desjardins Funds say.

Despite the foreign holdings, the fund’s benchmark will be the S&P/TSX composite index.


The management of the Desjardins Dividend Growth Fund has been entrusted to Jarislowsky Fraser, a firm known for its prudent management approach. A new partner of the Desjardins Funds family, Jarislowsky Fraser will aim at maintaining 50 to 60 securities in the fund, the vast majority of which will be noncyclical large-cap stock.

“Its management approach is focussed on fundamental research, and the selection of securities is much more important than the portfolio’s sector-based asset allocation,” explains Denis Dion, products manager / Canadian equity at the Fédération des caisses Desjardins du Québec.

IE