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

$83.2 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

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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, 2021    
Annualized
Net of Fees 3M YTD 1Y 3Y 5Y 7Y 10Y Incep.
Series F -0.2% 15.6% 22.5% 5.7% 5.8% 4.7% 5.97.4 4.8%

Growth of $10,000 since inception

Cumulative Returns

    3M YTD 1Y 3Y 5Y 7Y 10Y Incep.
Series F   -0.2% 15.6% 22.5% 18.1% 32.7% 37.7% 104.3% 91.5%

 

  • 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

Constellation Software Inc. 4.4%
National Bank of Canada 4.1%
Bank of Montreal 4.0%
Canadian National Railway Co. 3.9%
West Fraser Timber Co. Ltd. 3.9%
Cash 3.8%
Dollarama Inc. 3.7%
Canadian Tire Corp. Ltd. 3.7%
First National Financial Corp. 3.6%
BCE Inc.  3.5%
  • 4.4% - Constellation Software Inc.

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

  • 4.1% - National Bank of Canada

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

  • 4.0% - Bank of Montreal

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

  • 3.9% - Canadian National Railway Co.

    Offers transportation and supply chain expertise across North America.

  • 3.9% - West Fraser Timber Co Ltd.

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

  • 3.8% - Cash

  • 3.7% - Dollarama Inc.

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

  • 3.7% - Canadian Tire Corp Ltd.

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

  • 3.6% - First National Financial Corp.

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

  • 3.5% - BCE Inc.

    Canada’s largest communications company and operates various media properties such as CTV, TSN, Crave and The Source retail stores .

Outlook

Given we are in the seasonally weak period (September – November) for global stock markets, the Fund will take advantage of a pullback in the stock market by adding to existing portfolio positions. Global economic growth remains intact despite concerns about higher energy prices and potential inflation. Although the Bank of Canada and the U.S. Federal Reserve have announced a reduction in their bond purchase programs (which have kept interest rates artificially low since March 2020), slightly higher interest rates will not stop the economic recovery. Our portfolio companies are well-positioned to benefit from 2022 economic growth given their strong balance sheets and ability to increase prices due to supply side issues. The Fund continues to be underweight in the Energy and Materials sectors (gold and silver) and overweight the Consumer Discretionary, Consumer Staples and Communication Services sectors which have appealing valuations and attractive dividends.

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.