Matco Balanced Fund (Series F)
Fund Documents [LINK] Fund Codes [LINK] As at December 31, 2020
Investment Profile
The Fund invests in a diversified portfolio of Canadian companies, global companies and high-quality bonds in order to preserve capital, produce income and generate long term capital appreciation.
2007
$198.8 Million
Trevor Galon, CFA
2.7%
The fund generally has an asset mix of Canadian bonds, (40%-60%), Canadian equities (25%-45%) and foreign equities (0%-35%).
The fund seeks to preserve capital, produce income and generate long term capital appreciation by optimizing its asset mix of investments through top-down and bottom-up analysis.
The fund focuses on companies that meet Matco’s strict investment criteria which include:
Quality
Income
Growth
Value
Risk
Ensure you have an investment time horizon of 5+ years
Learn about Matco and our investment philosophy
Assess the fund’s performance over a 5-year period in order to recognize the fund’s true value
| As at December 31, 2020 |
Annualized
|
||||||||
|---|---|---|---|---|---|---|---|---|---|
| Net of Fees | 3M | YTD | 1Y | 3Y | 5Y | 7Y | 10Y | Incep. | |
| Series F | 5.7% | 6.4% | 6.4% | 3.7% | 5.1% | 5.3% | 5.7% | 4.7% | |
| 3M | YTD | 1Y | 3Y | 5Y | 7Y | 10Y | Incep. | ||
|---|---|---|---|---|---|---|---|---|---|
| Series F | 5.7% | 6.4% | 6.4% | 11.6% | 28.5% | 44% | 74.5% | 83.2% |
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Series F | 6.4% | 9.5% | -4.2% | 7.6% | 6.9% | 5.5% | 6.2% | 14.4% | 6.3% | -0.3% | 10.4% | 18.8% | -20.8% | 1.0% |
| From 2015 to 2020 |
From 2014 to 2019 |
From 2013 to 2018 |
From 2012 to 2017 |
From 2011 to 2016 |
From 2010 to 2015 |
From 2009 to 2014 |
From 2008 to 2013 |
From 2007 to 2012 |
|
|---|---|---|---|---|---|---|---|---|---|
| Series F | 5.1% | 5.0% | 4.3% | 8.1% | 7.8% | 6.3% | 7.3% | 9.7% | 1.9% |
| 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|
| Income | TBA | 0.27 | 0.14 | 0.15 | 0.16 | 0.18 |
| Capital Gains | TBA | 0.25 | 0.42 | 0.36 | 0.17 | - |
| Total Distributions: | TBA | 0.52 | 0.56 | 0.51 | 0.33 | 0.18 |
| Matco Fixed Income Fund | 37.2% |
|---|---|
| Matco Global Equity Fund | 30.0% |
| Matco Canadian Equity Income Fund | 19.7% |
| Matco Small Cap Fund | 10.5% |
| Cash | 2.6% |
The year 2020 began with significant market volatility, as the rise in COVID-19 cases led to a global pandemic and economic gridlock. However, central banks and governments responded quickly with fiscal and monetary support, allowing investment markets to regain solid footing.
Once the initial shock wore off and economic stimulus began to flow through to the economy, markets staged a remarkable recovery through the remainder of the year. As we look out on the horizon to 2021, there are a few primary considerations. First, we believe we have begun a new long-term economic expansion. Economic activity, corporate earnings and global labor markets have begun to repair themselves. Second, investment markets have rebounded quickly, reflecting both the economic repair as well as the stimulus the economy has received. This has left some questioning if markets have disconnected from fundamentals. Given that North American equity markets have reached new record highs, this is a reasonable question.
These lofty valuations mean that it will be up to corporate earnings growth to support equity market prices going forward. Outside of earnings specifically, we anticipate several tailwinds that could also support markets. Namely, a more stable U.S. government, the continued distribution of COVID-19 vaccinations, the gradual reopening of the economy and low interest rates. Overall, although valuations pose a risk to investment returns in 2021, the balance of risks and notable tailwinds leave us constructive and optimistic that we are embarking on a new economic expansion that will reward investors over the medium term.
