Transcript Securing Your Clients Future

Jov Leon Frazer Dividend Fund
ABOUT LEON FRAZER & ASSOCIATES
•
Over a half century of Navigating Volatile Markets
– Established in 1939
•
•
Oldest Independent Investment Manager in Ontario
Second Oldest in Canada
– Offices in Toronto and Vancouver
– $1.5 Billion under Management
•
•
Value style
Investment strategy focused on stocks with history and prospects of
increasing and paying out dividends.
– Dividend Increases drive growth in Capital & Income
– Provides style diversification to traditional other equity holdings
– Protects capital in volatile markets
JOV LEON FRAZER DIVIDEND FUND
•
•
•
•
•
Achieve long-term total returns consisting of regular dividend income
and modest long-term capital growth
Fund invests primarily in common shares and equity securities of major
North American companies with above average dividend yields
Benchmark: S&P/TSX Total Return Index
Inception: April 2007
Capacity $2-$4B
JOV LEON FRAZER DIVIDEND FUND
SUMMARY OF INVESTMENT PROCESS
ESSENTIAL THEMES
Volatility occurs in all asset classes, even Money Market funds
•
•
•
•
Shift from accumulating wealth to payout of wealth
Need for income as investors move away from full-time employment
“Protect what I have” mentality
Looking for solutions, not products
ALL RISKS ARE NOT OBVIOUS
• Market Value Risk priced everyday
– Inflation Risk is priced in cost of gas at the pump, food prices and
vacation travel
– Taxes erode income from salaries and investments
• Key is to protect after-tax, after-inflation buying power
LONG-TERM EFFECTS OF INFLATION
IMPACT OF INFLATION ON HOUSEHOLD PRICES
Sources: www.1960sflashback.com; www.zfacts.com; www.today.com; www.econmagic.com; www.akdart.com/postrate.html.
All figures are in US prices.
GUARANTEED INVESTMENT CERTIFICATES (GICs)
•
•
•
•
•
Protect capital value
Fully taxed as earned income rate
Illiquid
Fixed rate investment
Assuming 50% tax rate and 5% inflation rate: 6% GIC = -1.6% real
return
DIVIDEND-FOCUSED STRATEGY BOOSTS RETURNS
• Dividends can provide a consistent source of income, especially to
aging investors
• High quality, dividend-paying companies offer tax-advantaged
income, growth potential and diversification
BENEFITS OF DIVIDEND INVESTING
Income and Capital Appreciation:
•
•
•
•
During the 80 year period ending 2006, an impressive 40% of stocks’ total
return came from dividends*
Stocks with rising dividends have easily outperformed the market over the
past 10 years**
Dividend income is taxed at lower rate than wage and interest income
Dividends provide cash flow for reinvestment
*Source: Goldman Sachs U.S. Portfolio Strategy, September 25, 2006
**Source: George Vasic, UBS Investment Research Report, August 2006
DIVIDENDS CONTRIBUTE TO GROWTH
Increasing dividends contribute to growth in a company’s stock price*
FUND IS IDEAL FOR:
• Clients who want to protect their capital from inflation
• Clients who desire monthly tax-efficient distributions
• Clients who are looking to access institutional style money
managers
• Clients who are looking for a growth type vehicle to add to their
portfolio
FUND DETAILS
Portfolio Sub-Advisor:
Fund Code:
Minimum Investment:
Minimum Subsequent:
Minimum Pre-Authorized Payment:
Minimum Automatic Withdrawal Plan:
Currency:
Distributions:
Commissions:
Management Fee:
Trailer:
Leon Frazer & Associates
JOV105
JOV 205 (DSC)
JOV 305 (F Class)
$1,000
$500
$50
$50
CAD
Monthly
Up to 5%
2%
1% (0.50% on DSC)
DISCLAIMER
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments.
Please read the prospectus before investing. The indicated rate(s) of return is (are) the historical annual compounded total
return(s) including changes in (share or unit) value and reinvestment of all (dividends or distributions) and does (do) not take into
account sales, redemptions, distribution or optional charges or income taxes payable by any security holder that would have
reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
APPENDIX
DSC SCHEDULE
•
5.00% sales commission on the
amount invested
•
50bps trailer paid quarterly
•
•
Each year the investor is allowed to
redeem up to 10% of the number of
units they held on December 31 of the
previous year without being charged
the early redemption fee
The 10% free redemption rate will be
reduced by the distribution rate of the
fund during the previous calendar year
Redeems During:
Client Pays:
Year 1
5.5%
Year 2
5.5%
Year 3
5.0%
Year 4
4.5%
Year 5
4.0%
Year 6
3.0%
Year 7
2.0%
Thereafter
0%