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%.