Matco Fixed Income Fund (Series F)
Fund Documents [LINK]    Fund Codes [LINK]    As at June 30, 2020  

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

$114 Million

Portfolio Manager

Trevor Galon, CFA


Current Yield 2.4%
Yield to Maturity 1.3%

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      
Net of Fees 3M YTD 1Y 3Y 5Y 7Y 10Y Inception
Series F 6.3% 7.0% 6.8% - - - - 4.8%


Growth of $10,000 since inception

Cumulative Returns

  3M YTD 1Y 3Y 5Y 7Y 10Y Inception
Series F 6.3% 7.0% 6.8% - - - - 13.8%


  • Calendar Year Returns

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

      2019 2018 2017 2016 2015
    Income 0.18 0.16 0.06 - -
    Capital Gains - - - - -
    Total Distributions: 0.18 0.16 0.06 - -

Sector Allocation

Asset Mix

Top Holdings

Canadian Government 3.50% 01DEC45 9.5%
Province of Alberta 2.90% 01DEC28 7.5%
Dollarama Inc. 3.55% 06NOV23 7.0%
Bank of Montreal 2.37% 02FEB25 5.9%
Hydro One Inc. 5.36% 20MAY36 5.5%


Canadian Government Bond 1.25% 01MAR25 5.1%
Province of Alberta 3.45% 01DEC43 5.1%
Bank of Nova Scotia 2.873% 04JUN21 5.0%
Canadian Government Bond 1.50% 01JUN26 5.0%
Province of British Columbia 2.55% 18JUN27 5.0%



The outlook for the Canadian bond market has been altered by the economic implications of the COVID-19 pandemic. The pandemic caused economic activity to grind to a halt in the first quarter. In response, global central banks lowered interest rates and injected monetary stimulus into the economy. These factors have led to two primary outcomes relevant to the bond market. First, interest rates around the world dropped significantly, a positive for bond performance. Second, although credit spreads had widened significantly in the first quarter, they have since narrowed, allowing the performance of the corporate bond sector to recover, also a positive for bond performance. These two factors have driven the healthy performance year to date. Looking forward, heightened economic uncertainty means global interest rates are likely to remain low for a significant period; a positive for the bond market. Global Central's banks have committed to leaving their overnight rates unchanged which gives this outcome a high probability. The predominant risk is a resurgence of COVID-19 cases causing a delay in the re-opening of the economy and credit spreads to widen, or at least remain volatile. Overall, the bond market continues to be a haven for investors seeking preservation of capital and as a risk management tool, offsetting the volatility within the equity portion of their 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.