Matco Balanced Fund (Series F)
Fund Documents [LINK] Fund Codes [LINK] As at March 31, 2022
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
$203.6 Million
Trevor Galon, CFA
2.5%
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
| As at March 31, 2022 |
Annualized
|
|||||||
|---|---|---|---|---|---|---|---|---|
| Net of Fees | 3M | YTD | 1Y | 3Y | 5Y | 7Y | 10Y | Incep. |
| Series F | -3.0% | -3.0% | 3.2% | 5.5% | 4.7% | 4.7% | 6.1% | 4.8% |
| 3M | YTD | 1Y | 3Y | 5Y | 7Y | 10Y | Incep. | |
|---|---|---|---|---|---|---|---|---|
| Series F | -3.0% | -3.0% | 3.2% | 17.4% | 25.6% | 37.8% | 80.0% | 95.2% |
| 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Series F | 9.9% | 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 2016 to 2021 |
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 | 5.7% | 5.1% | 5.0% | 4.3% | 8.1% | 7.8% | 6.3% | 7.3% | 9.7% | 1.9% |
| 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|
| Income | 0.16 | 0.08 | 0.27 | 0.14 | 0.15 | 0.16 | 0.18 |
| Capital Gains | 0.26 | – | 0.25 | 0.42 | 0.36 | 0.17 | - |
| Total Distributions: | 0.42 | 0.08 | 0.52 | 0.56 | 0.51 | 0.33 | 0.18 |
| Matco Global Equity Fund | 29.8% |
|---|---|
| Matco Fixed Income Fund | 29.5% |
| Matco Canadian Equity Income Fund | 22.5% |
| Matco Small Cap Fund | 10.0% |
| Canadian Dollar | 5.7% |
|---|---|
| iShares Interest Rate Hedged Corporate Bond ETF | 2.5% |
Heading into 2022, our Asset Mix Committee’s outlook was for continued economic growth, albeit at a slower pace than what was experienced in 2021. Notable headwinds were a more challenging corporate earnings environment, rising interest rates and continued supply chain disruptions. These headwinds were anticipated to create a more volatile stock market. The first quarter has highlighted that these risks remain. In addition, the Russian-Ukraine geopolitical conflict has caused additional uncertainty, while putting even more upward pressure on inflation.
Back in late 2020, the primary economic factors that we monitor closely suggested that the economic expansion was set to last from March 2020 until approximately mid-2024. This would represent a shorter economic expansion than the historical average of 7 years. These economic factors have progressed even more quickly, shortening our economic expansion outlook by 6 months.
Overall, we expect growth to continue its path of deceleration through the remainder of 2022. However, we do expect growth to reaccelerate heading into 2023. Over the next 18 months, financial conditions will continue to tighten as interest rates rise. This will begin to slow growth but in a delayed fashion.
Our Asset Mix Committee will be focused on risk management through the remainder of 2022 while ensuring our portfolio is positioned to capitalize on reacceleration in 2023. This means our fixed income allocation will remain at the lower end of its range, and equities at the higher end of its range. Within fixed income, the focus is to protect against inflation and rising interest rates. Within equities, we are focused on value-based sectors such as industrials and financials, as well as companies with the ability to flow price increases through to the consumer.
Given the tightening financial conditions, we are defensive on expensive sectors such as technology. The Matco balanced fund offers both asset class and equity exposure diversification. The fund is yielding 2.5% for unitholders, ensuring they are receiving income throughout their full investment horizon. In combination, this allows the fund to provide stable returns over the long term.
