Matco Canadian Equity Income Fund (Series F)
Fund Documents [LINK] Fund Codes [LINK] As at June 30, 2020
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
$68 Million
Anil Tahiliani, MBA, CFA
4.1%
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 |
Annualized
|
|||||||
|---|---|---|---|---|---|---|---|---|
| Net of Fees | 3M | YTD | 1Y | 3Y | 5Y | 7Y | 10Y | Incep. |
| Series F | 14.2% | -14.8% | -10.1% | -1.0% | 1.0% | 4.1% | 4.6% | 2.9% |
| 3M | YTD | 1Y | 3Y | 5Y | 7Y | 10Y | Incep. | |
|---|---|---|---|---|---|---|---|---|
| Series F | 14.2% | -14.8% | -10.1% | -3.1% | 5.0% | 32.4% | 57.0% | 42.9% |
| 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Series F | 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 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 | 4.6% | 2.4% | 9.0% | 8.6% | 4.1% | 7.9% | 12.4% | 0.8% |
| 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|
| Income | 0.59 | 0.40 | 0.34 | 0.28 | 0.29 |
| Capital Gains | 0.30 | - | 0.24 | - | - |
| Total Distributions: | 0.89 | 0.40 | 0.58 | 0.28 | 0.29 |
| Canadian Pacific Railway Ltd. | 4.3% |
|---|---|
| Kirkland Lake Gold Ltd. | 4.2% |
| Constellation Software Inc. | 4.0% |
| Quebecor Inc. | 3.9% |
| Alaris Royalty Corp. | 3.9% |
| Labrador Iron Ore Royalty Corp. | 3.8% |
|---|---|
| Metro Inc. | 3.7% |
| Northland Power Inc. | 3.6% |
| Canadian Imperial Bank of Commerce | 3.5% |
| Royal Bank of Canada | 3.5% |
Offers transportation and supply chain expertise with access to eight major ports and key markets across North America.
A gold producer with operations in Canada and Australia that produced 974,615 ounces of gold in 2019.
Acquires, manages and builds industry specific software businesses that provide specialized solutions to address the particular needs of their customers.
A telecommunication holding company that provides cable, television, telephone, internet and over-the-top video services.
Provides financing to private companies in the U.S. and Canada and receives royalties or distributions in return.
The company receives a royalty and per tonnage commission on all iron ore products produced, sold and shipped by Iron Ore Company of Canada.
A leading retailer which operates 950 food stores and 650 drugstores under various banners in Ontario and Quebec.
A global developer, owner and operator of solar, wind, thermal and electricity infrastructure.
A Canadian focused diversified financial services company.
A multi-national financial services company and the largest bank in Canada by market capitalization.
The Fund remains well-positioned with a dividend yield of 4.1% and remains underweight to cyclical sectors. Given the sharp global stock market rally since late March and the upcoming second-quarter reporting season, we would view any potential market pullback as a buying opportunity. Headlines of a second COVID wave in the U.S., trade issues with China, and the U.S. presidential election may also be short term risks for the markets, however, they will provide a buying opportunity for long term investors. With interest rates expected to remain low for the next two to three years and the start of a new economic cycle likely in 2021, long term investors should focus on dividend-paying companies and be cautious of companies with unrealistic valuations.
