Matco Balanced Fund (Series F)
Fund Documents [LINK]    Fund Codes [LINK]    As at June 30, 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.

Fund Inception Date


Fund Net Asset Value

$168.0 Million

Portfolio Manager

Trevor Galon, CFA

Dividend Yield


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



Geographic Profile (Equities)

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

Balanced Geographic Profile 22Q2


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

Performance (Series F)

As at June 30, 2022    
Net of Fees 3M YTD 1Y 3Y 5Y 7Y 10Y Incep.
Series F -8.9% -11.7% -9.4% 1.9% 2.8% 3.4% 5.3% 4.0%


Growth of $10,000 since inception

Balanced Growth of $10,000 21Q3

Cumulative Returns

  3M YTD 1Y 3Y 5Y 7Y 10Y Incep.
Series F -8.9% -11.7% -9.4% 5.7% 15.0% 26.7% 67.1% 77.8%


  • Calendar Year Returns

      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%
  • Rolling 5-Year Returns

      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%
  • Annual Distribution per Unit ($/unit)

      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

Sector Allocation

Balanced Sector Allocation 21Q3

Asset Mix

Balanced Asset Mix 21Q3

Top Holdings (Series O)

Matco Fixed Income Fund 33.9%
Matco Global Equity Fund 31.4%
Matco Canadian Equity Income Fund 20.4%
Matco Small Cap Fund  10.0%


iShares Interest Rate Hedged Corporate Bond ETF 2.9%
Canadian Dollar 1.4%



Heading into 2022, our Asset Mix Committee’s outlook was for continued economic growth, albeit slower than what was experienced in 2021. Notable headwinds were a more challenging corporate earnings environment and rising interest rates. These headwinds were anticipated to create a more volatile stock market. The first half of the year 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.

In late 2020, the primary economic factors we monitored 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 six months. 

Overall, we expect growth to continue its deceleration path through the remainder of 2022 and then 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. Within fixed income, the focus is to protect against inflation and rising interest rates. Within equities, we focus 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 2.7% 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.

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.