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.

Fund Inception Date

2007

Fund Net Asset Value

$198.8 Million

Portfolio Manager

Trevor Galon, CFA

Dividend Yield

1.8%

Is this fund for you?

You are seeking income, stability and capital preservation

You have a low to medium tolerance for risk on your investment

You are looking to hold the investment for the medium or long term

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Geographic Profile (Equities)

The fund generally has an asset mix of Canadian bonds, (40%-60%), Canadian equities (25%-45%) and foreign equities (0%-35%).

Strategy

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

Investor Education

  • 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

Performance (Series F)

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%
                   

Growth of $10,000 since inception

Cumulative Returns

    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%

 

  • Calendar Year Returns

      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%
  • Rolling 5-Year Returns

      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%
  • Annual Distribution per Unit ($/unit)

      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

Sector Allocation

Asset Mix

Top Holdings

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%

 

Outlook

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. 

Performance returns for the Matco Mutual Funds are calculated by Matco Financial Inc. These returns are calculated and reported in Canadian dollars and are historical simple returns for the 3 month, YTD and 1 year periods and annualized compounded total returns for periods after 1 year. They include changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. A cumulative return on an investment is the aggregate amount that the investment has gained or lost over time, independent of the amount of time involved, expressed as a percentage. Calendar year return reflects the compound rate of return over the specified calendar year (January 1st to December 31st). Matco Fund returns are calculated after management fees and operating expenses have been deducted.