Matco Canadian Equity Income Fund (Series F)
Fund Documents [LINK]    Fund Codes [LINK]     As at March 31, 2021 

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


Fund Net Asset Value

$77.1 Million

Portfolio Manager

Anil Tahiliani, MBA, CFA

Dividend Yield


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



Geographic Profile

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.


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 March 31, 2021    
Net of Fees 3M YTD 1Y 3Y 5Y 7Y 10Y Incep.
Series F 8.9% 8.9% 44.2% 5.0% 6.2% 4.3% 4.6% 4.5%

Growth of $10,000 since inception

Cumulative Returns

    3M YTD 1Y 3Y 5Y 7Y 10Y Incep.
Series F   8.9% 8.9% 44.2% 15.6% 34.8% 33.9% 56.7% 80.5%


  • Calendar Year Returns

      2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
    Series F -1.2% 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 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 4.8% 4.6% 2.4% 9.0% 8.6% 4.1% 7.9% 12.4% 0.8%
  • Annual Distribution per Unit ($/unit)

      2020 2019 2018 2017 2016 2015
    Income 0.02 0.59 0.40 0.34 0.28 0.29
    Capital Gains 0.30 - 0.24 - -
    Total Distributions: 0.02 0.89 0.40 0.58 0.28 0.29

Sector Allocation 

Asset Mix

Top Holdings

First National Financial Corp. 4.3%
Canadian National Railway Co. 4.1%
Bank of Montreal 4.1%
Dollarama Inc. 4.0%
Constellation Software Inc. 4.0%
Canadian Tire Corp Ltd. 4.0%
Cash 3.8%
National Bank of Canada 3.8%
West Fraser Timber Co Ltd. 3.5%
The North West Company Inc. 3.4%
  • 4.4% - First National Financial Corp.

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

  • 4.2% - Canadian National Railway Ltd.

    Offers transportation and supply chain expertise across North America.

  • 4.1% - Bank of Montreal

    A diversified banking company operating across North America in the lending, wealth management and investment banking segments

  • 4.1% - Dollarama Inc.

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

  • 4.0% - Constellation Software Inc.

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

  • 4.0% - Canadian Tire Corp Ltd.

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

  • 3.9% - Cash

  • 3.8% - National Bank of Canada

    A diversified financial company involved in personal and commercial lending, underwriting, and wealth management services.

  • 3.5% - West Fraser Timber Co Ltd.

    An integrated global manufacturer of wood products such as lumber, engineered wood, pulp, newsprint and wood chips.

  • 3.5% - The North West Company Inc.

    A food and pharmacy retailer serving rural and urban communities in Northern and Western Canada, rural Alaska and the South Pacific islands and Caribbean.


Since the announcement of the COVID-19 vaccines in November 2020, our expectation was for the Canadian stock market to start outperforming its US counterpart in 2021. Our thesis was based on a number of factors. First, in valuations, as the Canadian stock market was trading at discount to the US market, which had significantly outperformed Canada since March 2020 due to its large weighting in mega large cap technology companies. Secondly, since 2009, the Canadian stock market had only outperformed the US stock market twice – in 2010 and 2016. These years were global economic recovery years, similar to what 2021 is shaping up to be. Thirdly, the US stock market had significantly outperformed all other developed markets over the last ten years and was now trading at large premium to these markets. Finally, global investors see Canada as a play on the global recovery (reinflation trade). The Canadian stock market has a significant weight in cyclical sectors such as financials, energy, base metals, and industrials compared to other developed stock markets.  So far, our thesis continues to play out. During the first quarter the Fund returned 8.9% versus the U.S. stock market which returned 4.5% (S&P 500 Index) in Canadian dollar terms. Given the low interest rate environment and strong economic growth forecasted by CIBC at 5.6% for 2021 and 4.4% for 2022, Canadian equities should continue to outperform over the next two years. We believe that the Matco Canadian Equity Income Fund is well positioned to benefit from the reinflation trade. The Fund’s underlying investment characteristics remain very appealing relative to its benchmark. As of March 31st, the Fund had an attractive dividend yield at 2.8%.    

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.