Why Invest?
Reasons to own to the Pender Canadian Equity Fund
1. High Calibre Advisor
Dixon Mitchell (DM) was established in 2000 and manages over $800 million of assets.
- The company is focused on generating superior risk-adjusted returns.
- With roots in the conservative insurance industry, the firm is risk averse and structures portfolios based on thorough fundamental business analysis to find companies with consistent cash flow and dividend growth.
- The team of four principals are CFA’s and have extensive experience managing investment portfolios.
2. Disciplined Buy Process
At the core of every investment is rigorous analysis of business fundamentals. Reviewing financials as well as qualitative information on competitive advantage and management quality, DM uncovers data from many sources. Submitting an investment thesis to various tests and models, the company develops base, upside and downside cases, and only with an acceptable reward:risk equation will it await the target buy price, and ultimately purchase when met.
3. Low Correlation
The fund is designed to select stocks based on their fundamental qualities, such as valuation and cash flow growth, independent of their relative weight in market indices. As such, the fund will regularly exhibit low correlation with equity benchmarks.
4. Disciplined Sell Process
Dixon Mitchell’s sell process is designed for protection. It reviews investments on a regular basis with the aim of catching a breakdown in business fundamentals and providing a chance to react, for example sell, before the price is impacted too heavily. Otherwise the firm patiently waits for a price objective to be met and also looks for catalysts to liquidity.
5. Concentration
Adhering to the focused investment philosophy, the fund will hold between 25 and 40 stocks at any one time, preferring to sell a stock rather than increase holdings when a better investment opportunity is found that improves the portfolio.
6. Dividend Focused
The portfolio manager's focus on cash flow generation and cash flow growth in the companies selected translates into a portfolio with above-market dividend yield. This income profile also increases the predictability of the fund's returns and the stability of asset values.