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

$106.4 Million

Portfolio Manager

Trevor Galon, CFA


Current Yield 2.4%
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 June 30, 2021    
Net of Fees 3M YTD 1Y 3Y 5Y 7Y 10Y Inception
Series F 1.3% -3.7% -2.9% 2.8% - - - 2.7%


Growth of $10,000 since inception

Cumulative Returns

  3M YTD 1Y 3Y 5Y 7Y 10Y Inception
Series F 1.3% -3.7% -2.9% 8.8% - - - 10.6%


  • 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 7.4%
Bank of Montreal 2.37% 03FEB25 6.2%
Hydro One Inc. 5.36% 20MAY36 5.3% 
Royal Bank of Canada 1.968% 20MAR22 5.1%


Province of Alberta 3.45% 01DEC43 4.8%
Canada Housing Trust  1.75% 15JUN30 4.8%
Bank of Montreal 3.19% 01MAR28 4.0%
Canada Housing Trust No. 1 FRN 15SEP24 3.9%
Canada Housing Trust No. 1 FRN 15MAR24 3.9%


North American central banks, the Bank of Canada and the U.S. Federal Reserve have laid out their intentions for the next 24 months. They have explicitly indicated that they intend to leave their overnight interest rates at the current levels of 0.25%, until 2023. These communications are intended to provide capital markets with the certainty that low-interest rates will continue to support the economic recovery. Taking it a step further, both central banks are in the process of purchasing securities in the open market, namely government and corporate bonds. This action will also serve as a line of support for both the economy and markets. As we approach the end of 2021, both central banks are likely to begin paring back the number of bonds they are buying in the market. This particular action is referred to as “tapering their asset purchase”. When the tapering begins, it will be a very modest and measured approach so as not to disrupt credit markets in the process. Lastly, the U.S. Federal Reserve has indicated that they will be targeting long-term average inflation going forward, as opposed to simply targeting 2% inflation at a point in time. What does this all mean for the bond market? The implications are three-fold. First and foremost, one should anticipate short-term interest rates to remain low through 2021. Secondly, although corporate bond spreads have recovered significantly, they should remain relatively stable given that central banks are directly supporting them through their purchase of corporate bonds in the open market. Thirdly, with central banks now focusing on long-term average inflation, longer-term interest rates are likely to drift higher even though short-term interest rates may remain stable; this trend has already begun to unfold. Overall, this lends to a stable but modest return outlook for the fixed income market in Canada. Within our Matco Fixed Income Fund, we continue to adjust our portfolio positioning to maintain a healthy level of income while avoiding unnecessary risk.

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.