(Second Quarter 2010)
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Over the past six months, the global economic recovery that swept through markets around the world in 2009 began to lose some of its momentum. Mixed results from US economic indicators, a potential credit tightening in China stemming from a heated real estate market, and the headline-grabbing European sovereign debt saga have all weighed heavily on the markets. Indices around the world corrected significantly in April-May 2010 as metal prices fell sharply only to exhibit a volatile sideways pattern thereafter. This correction has given credence to our cautious outlook made at the beginning of the year.
In our most recent June 30, 2010 Quarterly Report entitled “Preservation of Capital-Managing For Challenging Times”, we reinforce our underweight position in equities as we mitigate our exposure to excessive volatility brought about by the inflection in leading economic indicators. Moreover, we continue to shy away from cyclical sectors and continue to reiterate our Canada-centric strategy coupled with exposure to growth in the emerging markets vis-à-vis mega-cap multinationals targeting the Asian consumer.
Our long-term investment themes (Dividend Growth, Emerging Markets, Technology Infrastructure, Agriculture/Commodities, and Energy) stipulated at the beginning of 2010, continue to guide our investment philosophy. The C.F.G Heward Fund, the bellwether of our core Balanced Mandate, reflects our Growth at a Reasonable Price (GARP) strategy while reinforcing our value bias. Going into its first anniversary, the C.F.G. Heward Canadian Dividend Growth Fund is designed to capitalize on long-term growth opportunities inherent in dividend-growing stocks. Notably, fourteen of the twenty-three stocks in the fund increased their dividends over the last twelve months.
Copies of both the Quarterly Report and the Pooled Funds Quarterly Profiles are available on this site.
As always, we appreciate your continued support.
James Heward
President
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