Matco Canadian Equity Income Fund (Series F)
Fund Documents [LINK] Fund Codes [LINK] As at June 30, 2022
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.
2007
$81.1 Million
Anil Tahiliani, MBA, CFA
4.0%
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.
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
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
| As at June 30, 2022 |
Annualized
|
|||||||
|---|---|---|---|---|---|---|---|---|
| Net of Fees | 3M | YTD | 1Y | 3Y | 5Y | 7Y | 10Y | Incep. |
| Series F | -11.0% | -7.4% | -1.8% | 5.8% | 5.0% | 4.8% | 6.7% | 4.4% |
| 3M | YTD | 1Y | 3Y | 5Y | 7Y | 10Y | Incep. | ||
|---|---|---|---|---|---|---|---|---|---|
| Series F | -11.0% | -7.4% | -1.8% | 18.5% | 27.8% | 38.4% | 90.8% | 88.4% |
| 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Series F | 22.8% | -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% |
| From 2016 to 2021 |
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 | 6.3% | 4.8% | 4.6% | 2.4% | 9.0% | 8.6% | 4.1% | 7.9% | 12.4% | 0.8% |
| 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|
| Income | 0.22 | 0.02 | 0.59 | 0.40 | 0.34 | 0.28 | 0.29 |
| Capital Gains | 0.08 | – | 0.30 | - | 0.24 | - | - |
| Total Distributions: | 0.30 | 0.02 | 0.89 | 0.40 | 0.58 | 0.28 | 0.29 |
| Ritchie Bros. Auctioneers Inc. | 4.1% |
|---|---|
| Ats Automation Tooling Systems Inc. | 4.0% |
| Nutrien Ltd. | 3.9% |
| Great-West Lifeco Inc. | 3.8% |
| Rogers Communications Inc. CLB NV | 3.7% |
| Waste Connections Inc. | 3.6% |
|---|---|
| Loblaw Companies Ltd. | 3.5% |
| BCE Inc. | 3.5% |
| Bank of Nova Scotia | 3.5% |
| Toronto-Dominion Bank | 3.5% |
Provides a global platform to buy and sell heavy equipment, trucks and other assets.
Global provider of automation and integration solutions for various industries
A global producer of potash, nitrogen and phosphate products for the agricultural and industrial markets.
Financial service company offering life and health insurance, retirement and asset management and reinsurance.
Provides internet, wireless, cable and security services and owns the Toronto Blue Jays and other media assets.
North America's third-largest solid waste services company serving Canada and the United States.
Canada’s largest food and pharmacy leader with 2,400 stores under various banners including Loblaws, Real Canadian Superstore and Shoppers Drug Mart.
Canada’s largest communications company and operates various media properties such as CTV, TSN, Crave and The Source retail stores.
An international bank operating in lending, wealth management, investment banking, and capital markets.
A global bank operating in Canadian Retail, U.S. Retail, and an investment in The Charles Schwab Corporation; and Wholesale Banking.
We expect the Bank of Canada to aggressively raise interest rates given its public stance against inflation. Although the central bank is in a difficult position to control inflation while not engineering a recession, we do not believe a recession will occur in 2023. Our thesis is based on recent ‘green shoots’ of falling prices for semiconductor chips, shipping container prices, and food input costs.
We expect inflation to start falling in 2023, and the pace until then will be moderate increases rather than run away as we experienced in the late 1970s/early 80s. Canadian calendar 2022 corporate earnings are expected at 28% year-over-year. However, 2023 earnings are currently estimated at 6% year over year. Thus, a recession is already well discounted by investors, given the peak to trough decline of 17% of the Canadian stock market and reduced earnings expectations heading into 2023.
The Fund continues to be positioned for a rising rate environment, with the largest sector weights being Financials, Industrials, Telecommunications, and Energy. However, investor sentiment toward equities remains negative, given daily headlines of a pending recession. For long-term investors, this is the time to take advantage of recession fear by buying high-quality dividend-paying companies with sustainable dividends.
