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

2007

Fund Net Asset Value

$85.8 Million

Portfolio Manager

Anil Tahiliani, MBA, CFA

Dividend Yield

3.2%

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 June 30, 2021    
Annualized
Net of Fees 3M YTD 1Y 3Y 5Y 7Y 10Y Incep.
Series F 6.3% 15.8% 34.3% 5.5% 6.9% 4.4% 5.9% 4.9%

Growth of $10,000 since inception

Cumulative Returns

    3M YTD 1Y 3Y 5Y 7Y 10Y Incep.
Series F   6.3% 15.8% 34.3% 17.5% 39.9% 35.5% 77.9% 91.9%

 

  • 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

  TFI International Inc. 4.0%
  Canadian Tire Corp Ltd. 4.0%
  First National Financial Corp. 3.9%
  Constellation Software Inc. 3.9%
  Bank of Montreal 3.9%
  National Bank of Canada 3.8%
  Dollarama Inc. 3.7%
  Labrador Iron Ore Royalty Corp. 3.6%
  iShares S&P/TSX Capped Energy Index ETF 3.6%
  Rogers Communications Inc. 3.4%
  • 4.0% - TFI International Inc.

    Provides trucking, logistics and packaging services across North America.

  • 4.0% - Canadian Tire Corp Ltd.

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

  • 3.9% - First National Financial Corp.

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

  • 3.9% - Constellation Software Inc.

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

  • 3.9% - Bank of Montreal

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

  • 3.8% - National Bank of Canada

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

  • 3.7% - Dollarama Inc.

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

  • 3.6% - Labrador Iron Ore Royalty Corp.

    The company receives a royalty and per tonnage commission on all iron ore products produced, sold and shipped by Iron Ore Company of Canada.

  • 3.6% - iShares S&P/TSX Capped Energy Index ETF

    A portfolio of the thirteen largest energy companies in Canada by market capitalization.

  • 3.4% - Rogers Communications Inc.

    Provides internet, wireless, cable and security services and owns the Toronto Blue Jays and other media assets.

Outlook

As we expected, the Canadian stock market (in US dollar terms) has been the best performing major stock market year-to-date ending June 30th. As we have discussed previously, Canadian companies remain an attractive investment for investors as a global economic recovery play.
A combination of lower relative valuations, strong balance sheets, resource and commodity exposure, high dividend yields, and being seen as an edge against potential future inflation have driven global investors back into Canadian stocks. Despite investor concerns about headline inflation, we still believe that we are in the early stage of the economic cycle and that market corrections or pullback will be a buying opportunity for long-term investors. The combination of low interest rates and increased federal government spending due to the upcoming election will continue to boost the Canadian economy despite uneven economic growth across the country. The underlying fundamentals of the global economy remain strong with low-interest rates, credit growth, pent-up consumer demand, high savings rates, and a global inventory re-stocking cycle underway. We believe that the Matco Canadian Equity Income Fund is well-positioned to benefit from the global recovery trade. The Fund’s underlying investment characteristics remain very appealing. As of June 30th, the Fund had an attractive dividend yield at 3.2% a high return on equity of 23% and a low trailing price to earnings of 13.6 times. 

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.