News Releases

Interview Opportunity Recession-Proof Your RSP with Resources and Dividends says GGOF

WHY:
The RSP season of 2008 may be better remembered for market volatility and recession fears than the usual discussions about long-term investing and retirement planning. However, as we approach the RSP deadline, Guardian Group of Funds (GGOF) and its leading international fund managers offer perspective and advice on where Canadian investors should consider putting their money this year. GGOF points to the impact of the growth in Asia as well as dividend paying stocks as a way of managing market volatility, as well as protecting against inflation and a possible U.S. recession.

“ In Asia the shift of more than 300 million people into the middle class has been creating a domino effect of unprecedented demand for raw materials and commodities. Resources, such as oil, gas and base metals are not only needed to satisfy consumer appetites for TVs, cell phones and cars, but to build the infrastructure of an increasingly consumer-driven society,” said David Harding, Managing Director at Matthews International Capital Management, the sub-advisor firm which manages GGOF Asian Growth and Income Fund.

“This surging domestic demand will protect the Chinese economy and buoy their demand for resources even in the face of a U.S. slowdown,” added Harding.

With the fear of a U.S. recession looming and the return of inflation driven by higher fuel and food prices as well as rising rents, stocks with a dividend attached should also be considered by Canadian investors.

“In fact, when looking at the S&P /TSX composite index over the last 10 years, stocks with a dividend outperformed their non-dividend counterparts. In terms of the current market environment, high dividend yields, particularly on large, blue-chip companies such as the banks, can often foretell strong stock performance for the next 12 months,” said Michael Stanley, lead manager of GGOF Dividend Growth Fund and GGOF Canadian Equity Fund.

According to Gavin Graham, Chief Investment Officer for Guardian Group of Funds, market ups and downs are inevitable and downturns offer a great opportunity to buy.

“No one ever said it was going to be easy, and investors need to understand there will be volatile days. While it may seem boring, the long-term approach really is the best way of achieving financial success,” said Graham. "At GGOF we feel that investors should consider buying a mutual fund that holds good profitable blue-chip companies with dividends that grow over time. This kind of investment provides a steady income stream as well as a dividend-tax credit. As part of a well diversified portfolio, Canadians should look at taking advantage of the growth in Asia; this includes global investing opportunities as well as looking at sectors such as resources, right here in our backyard."

WHAT:
GGOF experts are available to discuss:

Buying opportunities that capitalize on the growth in Asia
A review of dividend paying stocks
Strategies to help investors to deal with market volatility and protect against a recession
U.S. and Canadian interest rates
The return of inflation
U.S. impact on the Chinese and other international economies
China and the "Olympic Effect"
An overview of Canadian equities during the last year
Outlook for energy prices

WHO:

Gavin Graham, Chief Investment Officer, GGOF
David Harding, Managing Director at Matthews International Capital Management, the sub-advisor firm which manages GGOF Asian Growth and Income Fund GGOF Asian Growth and Income Fund
Michael Stanley, lead manager of GGOF Canadian Equity Fund and GGOF Dividend Growth Fund

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