Our team started with the objective to create a portfolio focused on the tax advantages inherent in Equity Investments. These are core holdings typically outside the tax sheltered accounts to capture dividend yield and provide income. As well as, capital growth over time to build estate values and defer taxation on the growth. It’s actually most well suited to a non-registered account, where the dividend tax credit is essential.
We chose this objective because we feel it has main stream appeal to the baby boomer generation and we have accountants looking for this type of income stream for our mutual clients.
The idea is that there are stocks favoured in the overall Canadian economy, not necessarily from a return perspective but from a lower risk perspective: typically monopolies regulated by the Canadian government or protected as pillars of the Canadian economy.
We would have to qualify the portfolio as being medium risk with the mandate being a core holding for retiring households who prefer tax-advantaged income and secondarily, to provide for growth of that income through dividend increases over time. It would be NOT be suitable for investors who cannot withstand any volatility or are worried about making ends-meet in a retirement scenario. The main investments you would find in any mutual fund with a similar objective, but at a fraction of the costs. As Portfolio Managers our fees are tax deductible making our fees competitive with ETF investing, and displacing the ETF market with common sense investing.
Performance (including dividends) of our Blue Chip Canadian Dividend Yield Portfolio (100% Canadian Equity)
versus the S&P TSX Composite Total Return
|To Sept. 30, 2019||1 year||3 year||5 year||Since Inception**|
|Blue Chip Dividend Yield||12.9869||8.352%||5.965%||8.853%|
|S&P TSX Composite||5.29%||6.77%||4.95%||6.56%|
*Source: Croesus and Thomson
**Inception date is 02-24-2012
Information on returns is based on past performance which may not reflect future performance.
*** Returns are gross of fees as per the Global Investment Performance Standards (GIPS®)