Economic News/Trends and Analysis — February 2, 2010

Investment management firm C.F.G. Heward cautiously optimistic about the Canadian economy in 2010

Moderate growth this year should place Canada among best-performing economies in the developed world

MONTREAL, Feb. 2 /CNW Telbec/ - C.F.G. Heward, a provider of global investment management and advisory services, recently published its Quarterly Report for the three months ending December 31, 2009.

Globally, C.F.G. Heward believes that the economy is showing signs of emerging from the deepest recession since World War II. However, the financial crisis of 2008-2009 has created long-term effects, perhaps most significantly: Reduced US consumer spending.

In Canada, economic conditions are comparatively favourable, thanks in part to the robustness of the nation's banking system. Federal and provincial stimulus packages, combined with low interest rates, are allowing some Canadian businesses to resume hiring. However, the Canadian economy continues to face the twin challenges of a strong currency and weak exports of manufactured goods.

"Canadians have good reason to be optimistic about our economy heading into 2010 and it looks like we will do quite well compared to other leading industrialized nations," said Willem Hanskamp, Senior Vice President, C.F.G. Heward. "However, we also need to remain cautious. For starters, we would like to see international demand for our exports rise. And domestically, while low interest rates stimulate consumer spending, they also add risk to high household debt levels. Additionally, we expect increased merger and acquisition activity as companies will tend to buy growth rather than grow organically."

"In terms of advising our clients, we have identified five core investment themes for 2010: Favouring dividend growth companies; opportunities in the energy sector; opportunities in infrastructure and technology; global consumer stocks that benefit from ongoing growth in emerging markets; and, investment opportunities in basic materials, particularly gold. These themes complement C.F.G. Heward's long-standing investment style of favouring growth at a reasonable price with a value bias," Mr. Hanskamp concluded.

To schedule an interview with Willem Hanskamp, please contact Mark Lowe at (514) 499-9632 or mark.lowe@pragcom.com.

About C.F.G. Heward

Since 1981, C.F.G. Heward Investment Management Ltd. has successfully offered global investment management and advisory services to its clientele. A privately-owned firm, C.F.G. Heward has approximately $800 million under management. Representing private investors, family trusts, estates, holding companies and charitable foundations in Canada and abroad, C.F.G Heward is registered with provincial regulatory agencies in Ontario, Quebec, British Columbia, Alberta and New Brunswick. For more information, please see www.heward.com.

For further information: Media: Mark Lowe, PRagmatic Communications, For C.F.G. Heward, (514) 499-9632, Mobile: (514) 576-2519, mark.lowe@pragcom.com

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