Matco Canadian Equity Income Fund (Series F)
Fund Documents [LINK]    Fund Codes [LINK]     As at September 30, 2020 

Investment Profile
The Fund invests in mid to large-cap leading Canadian dividend-paying companies and is diversified across sectors. The Fund seeks to generate regular dividend income plus long term capital appreciation.

Fund Inception Date

2007

Fund Net Asset Value

$71.5 Million

Portfolio Manager

Anil Tahiliani, MBA, CFA

Dividend Yield

3.1%

Is this fund for you?

You typically have a 5+ year investment horizon

You can tolerate medium risk on your investment

You are looking for an investment that is well diversified and pays a dividend

  START INVESTING TODAY  

 

Geographic Profile

Canadian-focused
The Fund is primarily focused on Canadian equities maintaining a minimum of 70% in Canadian securities. It may also invest from time to time in U.S. and foreign securities based upon Matco's assessment of market conditions.

Strategy

The fund invests in a focused portfolio of 30-35 highest conviction companies.

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

  • Understand that at times the fund’s performance may be out of sync with the market

  • The companies’ earnings growth cycle may fluctuate over time

  • 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

  • Understand this Fund is not intended to be a complete investment program for all investors

Performance (Series F)

As at September 30    
Annualized
Net of Fees 3M YTD 1Y 3Y 5Y 7Y 10Y Incep.
Series F 9.4% -6.8% -3.5% 0.2% 3.7% 4.4% 4.7% 3.5%

Growth of $10,000 since inception

Cumulative Returns

  3M YTD 1Y 3Y 5Y 7Y 10Y Incep.
Series F 9.4% -6.8% -3.5% 0.7% 19.8% 35.4% 58.3% 56.3%

 

  • Calendar Year Returns

      2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
    Series F 18.4% -13.7% 9.4% 14.6% -2.5% 6.7% 18.1% 7.2% -7.3% 16.6% 31.1% -31.6% 2.4%
  • Rolling 5-Year Returns

      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 4.6% 2.4% 9.0% 8.6% 4.1% 7.9% 12.4% 0.8%
  • Annual Distribution per Unit ($/unit)

      2019 2018 2017 2016 2015
    Income 0.59 0.40 0.34 0.28 0.29
    Capital Gains 0.30 - 0.24 - -
    Total Distributions: 0.89 0.40 0.58 0.28 0.29

Sector Allocation 

Asset Mix

Top Holdings

Quebecor Inc. 4.3%
Metro Inc. 4.1%
Northland Power Inc. 4.1%
Canadian National Railway Co. 3.8%
Constellation Software Inc. 3.7%
TFI International Inc. 3.6%
Canadian Tire Corp Ltd. 3.5%
Dollarama Inc. 3.5%
Cargojet Inc. 3.5%
First National Financial Corp. 3.5%
  • 4.3% - Quebecor Inc.

    A telecommunication holding company that provides cable, television, telephone, internet and over-the-top video services.

  • 4.1% - Metro Inc.

    A leading retailer which operates 950 food stores and 650 drugstores under various banners in Ontario and Quebec.

  • 4.1% - Northland Power Inc.

    A global developer, owner and operator of solar, wind, thermal and electricity infrastructure.

  • 3.8% - Canadian National Railway Ltd.

    Offers transportation and supply chain expertise across North America.

  • 3.7% - Constellation Software Inc.

    Acquires, manages and builds industry specific software businesses that provide specialized solutions to address the particular needs of their customers.

  • 3.6% - TFI International Inc.

    Provides trucking, logistics and packaging services across North America.

  • 3.5% - Canadian Tire Corp Ltd.

    A diversified retailer with key brands; Mark's, PartSource, SportChek, Atmosphere and Helly Hansen.

  • 3.5% - Dollarama Inc.

    A value price retailer with 1,314 locations across Canada selling general products.

  • 3.5% - Cargojet Inc.

    The largest provider of overnight cargo delivery services in Canada.

  • 3.5% - First National Financial Corp.

    Canada's largest non-bank mortgage provider for the residential and commercial markets.

Outlook

The Fund remains well positioned with a current dividend yield of 3.1% and remains underweight to the energy and materials (gold/silver) sectors. Given the continued low interest rate environment for the next 2-3 years and the transition from economic recovery to expansion, we expect Canadian equities to perform well. As we head into the fourth quarter, we expect stock market volatility to increase due to concerns about a COVID-19 second wave, the U.S. presidential election and the ability of U.S. administration to get a second fiscal stimulus package approved. We would view any potential market pullback as a buying opportunity, given the earnings growth potential and dividend yields of our portfolio companies.

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.