Matco Fixed Income Fund (Series F)
Fund Documents [LINK]    Fund Codes [LINK]    As at March 31, 2021  

Investment Profile
The Fund invests in Canadian investment grade government and corporate bonds to generate interest income and modest capital appreciation.

Fund Inception Date


Fund Net Asset Value

$103.7 Million

Portfolio Manager

Trevor Galon, CFA


Current Yield 2.6%
Yield to Maturity 1.8%

Is this fund for you?

You are seeking income, stability and capital preservation

You have a low tolerance for risk on your investment

You are looking to hold the investment for the short, medium or long term



Geographic Profile

The fund invests primarily in Canadian dollar-denominated bonds issued by governments and corporations. The Fund may invest in up to 20% in U.S. corporate bonds.


To preserve capital and generate income, the Fund uses a multi strategy approach to optimize the portfolio.

Investor Education

  • Learn about Matco and our investment philosophy
  • Understand this Fund is not intended to be a complete investment program for all investors


Performance (Series F)

As at March 31, 2021    
Net of Fees 3M YTD 1Y 3Y 5Y 7Y 10Y Inception
Series F -5.0% -5.0% 1.9% 2.5% - - - 2.5%


Growth of $10,000 since inception

Cumulative Returns

  3M YTD 1Y 3Y 5Y 7Y 10Y Inception
Series F -5.0% -5.0% 1.9% 7.6% - - - 9.1%


  • Calendar Year Returns

      2020 2019 2018 2017
    Series F 8.0% 4.2% 0.7% 1.3%
  • Annual Distribution per Unit ($/unit)

      2020 2019 2018 2017 2016 2015
    Income 0.19 0.18 0.16 0.06 - -
    Capital Gains 0.15 - - - - -
    Total Distributions: 0.34 0.18 0.16 0.06 - -

Sector Allocation

Asset Mix

Top Holdings

Canadian Government 3.50% 01DEC45 7.5%
Province of Alberta 2.90% 01DEC28 7.5%
Dollarama Inc. 3.55% 06NOV23 7.4%
Bank of Montreal 2.37% 03FEB25 6.4% 
Canada Housing Trust No. 1 1.80% 15DEC24 5.8%


Hydro One Inc. 5.36% 20MAY36 5.4%
Royal Bank of Canada 1.96% 02MAR22 5.3%
Canada Housing Trust No. 1 1.95% 15DED25 5.3%
Canada Housing Trust 1.75% 15JUN30 4.8%
Province of Alberta 3.45% 01DEC43 4.7%


 There were several notable developments during the first quarter of 2021. First and foremost, North America has made significant progress on the vaccination front. Although we are not out of the woods yet, this does bode well for the reopening of the economy. Secondly, the U.S. Government passed a third round of COVID-19 fiscal relief with the American Rescue Plan bill, totalling US$1.9 trillion. From the central bank perspective, both the U.S. Federal Reserve and the Bank of Canada have reiterated their intentions of maintaining accommodative monetary policy for the next 24 months. They explicitly indicated their intention to leave the overnight interest rates at current levels, 0.25%, until 2023. They have also reaffirmed their asset purchase programs and will continue to buy securities in the open market, namely government and corporate bonds. These actions from central banks will continue to support the economic recovery. In combination, the above developments led to a significant increase in interest rates and continued stability in corporate spreads. Through the first quarter, five-year and ten-year interest rates rose approximately 0.50% and 0.80% respectively. As we look out to the remainder of 2021, although short term interest rates are likely to remain low, medium and longer term interest rates are likely to continue to drift higher. Rising rates and the steepening yield curve are a sign of a healthy economy and expectations for greater growth into the future. The economy can withstand these tighter financial conditions, but a gradual adjustment will be much better received than a more abrupt tightening. The introduction of Limited Recourse Capital Notes (LRCNs) has also created an interesting environment for income alternatives. LRCNs may begin to impact the preferred share segment of the market, and the outlook for both LRCNs and preferred shares has improved in recent months. Overall, remaining defensive with respect to duration and selective in credit will be critical going forward.

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.