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

$105.3 Million

Portfolio Manager

Trevor Galon, CFA


Current Yield 2.5%
Yield to Maturity 1.7%

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.Fixed Income Geographic Profile 21Q3


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 September 30, 2021    
Net of Fees 3M YTD 1Y 3Y 5Y 7Y 10Y Inception
Series F 0.0% -3.7% -3.2% 3.0% - - - 2.5%


Growth of $10,000 since inception

Fixed Income Growth of $10,000 21Q3

Cumulative Returns

  3M YTD 1Y 3Y 5Y 7Y 10Y Inception
Series F 0.0% -3.7% -3.2% 9.4% - - - 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 AllocationFixed Income Sector Allocation 21Q3

Asset MixFixed Income Asset Mix 21Q3

Top Holdings

Province of Alberta 2.90% 01DEC28 7.4%
Canadian Government 3.50% 01DEC45 7.4%
Hydro One Inc. 5.36% 20MAY36 5.3%
Toronto-Dominion Bank 1.888% 08MAR28 5.0% 
Canada Housing Trust  1.75% 15JUN30 4.8%


Province of Alberta 3.45% 01DEC43 4.8%
Canada Housing Trust No. 1 FRN 15SEP24 3.9%
Canada Housing Trust No. 1 FRN 15MAR24 3.9%
Canadian Dollar   3.7%
Royal Bank of Canada 2.328% 28JAN27 3.6%


The third quarter of 2021 observed a few developments that will impact the outlook for interest rates over the next twelve months. First and foremost, both the Bank of Canada and the U.S. Federal Reserve have been purchasing corporate and government bonds in the open market. This activity is referred to as their “asset purchase programs” and helps keep interest rates low while stimulating the economy. Of the seven global central banks involved in this activity, the Bank of Canada was the first to announce a reduction of its program back in April of 2021. This reduction is referred to as “tapering”. Although the U.S. Federal Reserve had not yet begun tapering their asset purchases, they provided more clarity on this front during the third quarter. At their most recent central bank meeting, head of the U.S. Federal Reserve Jerome Powell indicated that they would begin tapering their program before year-end. He also indicated the program is likely to be complete by mid-2022. Why is this information critical? The tapering of central bank asset purchase programs is the first step in tightening financial conditions. Once the programs are complete, this paves the way for central banks to increase their overnight interest rates. With greater clarity on this front, it is now very possible that North American central banks may increase their overnight interest rates in the second half of 2022. How does this information impact our outlook? First off, we anticipate interest rates to continue grinding higher throughout 2022. Central banks will ensure their actions don’t cause rates to rise too quickly, however, this remains the path of least resistance. Secondly, if central banks will be purchasing fewer corporate bonds in the open market, credit spreads may see more activity next year. This may create some opportunity to purchase high-quality corporate bonds at more attractive yield levels. Based on our outlook over the next twelve months, we continue to position the fund defensively against rising interest rates, while maintaining a robust portfolio yield. Our objective is to protect investor capital, produce healthy income and avoid any unnecessary risk within the Fund’s portfolio.

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.