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Analysis:
The best adjective for this fund is “sound”. It’s not flashy and will rarely be a category leader but it is dependable and the risk factor is reasonably low. It usually ranks in the top 50% of its peer group (2008 was the only recent exception) and its long-term returns are much better than average for its type. Over the decade to Nov. 30/09, investors received an average annual return of 6.2%.
The gain for the latest 12-month period was 20.5%. That was slightly below the norm, but not by enough to worry about. The portfolio is heavily weighted towards financials (32.6%) and energy stocks (29.8%), with materials at 15.7%,
Don’t be misled by the word “dividend” in the name. This is not an income fund; distributions are only paid once a year, in December. The fund is managed by the team of Gord MacDougall and Alastair Dunn of Connor, Clark & Lunn, a highly-respected house. This one is best-suited for investors interested in long-term growth. Rating: $$$.