Matco Global Equity Fund (Series F)
Fund Documents [LINK] Fund Codes [LINK] As at September 30, 2020
Investment Profile
The Fund invests in global companies that have the ability to pay dividends and grow earnings. A majority of these companies are based in the U.S., Europe and Emerging Markets (such as China, Taiwan, South Korea and India).
2017
$94.5 Million
Baron Lee, CFA
2.6%
Global-focused
The Fund’s geographic profile may change over time due to the portfolio manager’s assessment of regional market conditions such as interest rates, economic growth and company earnings growth.
The Fund follows a bottom-up and top-down strategy approach. The Fund's U.S exposure is focused on 30-35 dividend-paying companies. To gain exposure to leading non-U.S. companies, the Fund invests in regional exchange-traded funds to provide portfolio diversification.
The U.S. Equity Portfolio owns companies that meet Matco’s strict investment criteria which include:
Ensure you have an investment time horizon of 5+ years
You understand the amount invested in any one region will vary depending on the investment opportunities
The companies’ earnings growth cycle may fluctuate over time
Learn about Matco and our investment philosophy
Understand this Fund is not intended to be a complete investment program for all investors
| As at September 30, 2020 |
Annualized
|
|||||||
|---|---|---|---|---|---|---|---|---|
| Net of Fees | 3M | YTD | 1Y | 3Y | 5Y | 7Y | 10Y | Incep. |
| Series F | 3.9% | -2.6% | 4.6% | 5.0% | - | - | - | 5.6% |
| 3M | YTD | 1Y | 3Y | 5Y | 7Y | 10Y | Incep. | |
|---|---|---|---|---|---|---|---|---|
| Series F | 3.9% | -2.6% | 4.6% | 15.9% | - | - | - | 18.0% |
| Calendar Year Performance | 2019 | 2018 | 2017 |
|---|---|---|---|
| Series F | 19.3% | -3.9% | 5.7% |
| 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|
| Income | 0.09 | 0.01 | - | - | - |
| Capital Gains | 0.22 | - | - | - | - |
| Total Distributions: | 0.31 | 0.01 | - | - | - |
| Matco U.S. Equity Portfolio | 45.0% |
|---|---|
| iShares MSCI Europe IMI Index ETF (CAD-Hedged) | 10.6% |
| BMO S&P 500 Hedged to CAD ETF | 9.2% |
| BMO MSCI Europe High Quality Hedged to CAD ETF | 7.5% |
| Cash |
6.9% |
|---|---|
| BMO NASDAQ 100 Equity Hedged to CAD ETF | 6.7% |
| iShares Core MSCI Emerging Markets IMI Index ETF | 6.5% |
| iShares MSCI Japan Index ETF (USD-Hedged) | 5.9% |
A global technology company that provides semiconductor and infrastructure software solutions.
A pharmaceutical company with a focus on neuroscience, endocrinology, oncology and immunology.
A global leader in next-generation digital services and consulting.
The company creates GPS navigation and wearable technology for the automotive, aviation, marine and fitness markets.
Manufactures semiconductors for use in radio frequency and mobile communications systems.
A global technology company that sells networking products to service providers and corporations.
A leading global hardware company that designs products that bring people together through music, gaming, video, and computing.
Provides global tax preparation, financial services and small business solutions.
A hybrid cloud data services and data management company.
An independent investment banking advisory firm.
As we enter the fourth quarter, we expect increased volatility leading up to the U.S. presidential election on November 3, 2020. In an election year, the month of October typically produces negative returns, but the following year typically produces significant positive returns. This is shown in the years 2005, 2009, 2013 and 2017 where after U.S. presidential elections, the S&P 500 Index increased by 3.0%, 23.5%, 29.6% and 19.4% respectively. In 2021, not only do we expect an earnings recovery, but we expect governments and central banks around the world to continue to provide economic stimulus. Global growth should gain traction and then momentum so long as monetary policy includes ZIRP (zero interest rate policy) and QE (quantitative easing). With that said, we would expect the U.S. and Japan to underperform the rest of the world as investors sell the U.S. dollar and the Japanese yen to gain exposure to countries and/or regions with cyclical exposure. As mentioned earlier, the Fund has begun rotating out of the U.S. and into the rest of the world. Although we believe Europe is the cyclical catch up trade, we expect emerging markets and resources to appreciate as the U.S. dollar continues to depreciate.
