Matco Small Cap Fund (Series F)
Fund Documents [LINK]    Fund Codes [LINK]     As at June 30, 2021  

Investment Profile
The Fund invests in small to mid-sized dividend-paying Canadian companies that are typically growing faster than the economy. The Fund seeks to generate regular dividend income plus long term capital appreciation.

Fund Inception Date


Fund Net Asset Value

$67.2 Million

Portfolio Manager

Anil Tahiliani, MBA, CFA

Dividend Yield


Is this fund for you?

• You typically have a 5+ year investment horizon

• You are seeking above-average capital gain potential

• You can tolerate medium to high risk on your investment

• You can withstand volatility in the value of the fund's securities




Geographic Profile

The Fund has the flexibility to look for the best small-cap companies in North America. This includes up to 30% in U.S Small Cap companies.


The Fund invests in a focused portfolio of 30-35 highest conviction companies.

The fund focuses on companies that meet Matco’s strict investment criteria which include:

  • Quality
  • Income
  • Growth
  • Value
  • Risk

Investor Education

  • Assess the fund’s performance over a 5-year period in order to recognize the fund’s true value

  • Understand this Fund is not intended to be a complete investment program for all investors

  • Ensure you have an investment time horizon of 5+ years

  • Understand that at times the fund’s performance may be out of sync with the market

  • The companies’ earnings growth cycle may fluctuate over time

  • Learn about Matco and our investment philosophy


Performance (Series F)

As at June 30, 2021    
Net of Fees 3M YTD 1Y 3Y 5Y 7Y 10Y Incep.
Series F 5.9% 16.5% 48.1% 4.3% 6.0% 4.4% 7.3% 8.1%

Growth of $10,000 since inception

Cumulative Returns

  3M YTD 1Y 3Y 5Y 7Y 10Y Incep.
Series F 5.9% 16.5% 48.1% 13.6% 33.5% 35.0% 102.5% 143.1%


  • Calendar Year Returns

    Calendar Year Performance 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
    Series F 0.2% 10.5%  -12.3% 9.6% 15.1% 5.9% 1.4% 25.1% 12.1% -12.7% 29.7%
  • Rolling 5-Year Returns

      From 2015 
    to 2020
    From 2014
    to 2019 
    From 2013
    to 2018
    From 2012
    to 2017
    From 2011
    to 2016
    From 2010
    to 2015
    Series F 4.2% 5.3%  3.5% 11.1% 11.6% 5.6%
  • Annual Distribution per Unit ($/unit)

      2020 2019 2018 2017 2016 2015
    Income 0.11 0.63 0.66 0.42 0.28 0.26
    Capital Gains 2.10 - 0.50 - -
    Total Distributions: 0.11 2.73 0.66 0.92 0.28 0.26

Sector Allocation

Asset Mix

Top Holdings

  Chesswood Group Ltd. 4.1%
  Intertape Polymer Group Inc. 4.0%
  iShares S&P/TSX Capped Energy Index ETF 3.7%
  Yellow Pages Ltd. 3.6%
  Morguard REIT 3.6%
  Labrador Iron Ore Royalty Corp. 3.6%
  Transcontinental Inc. 3.5%
  Information Services Corp. 3.5%
  Western Forest Products Inc. 3.5%
  Leon's Furniture Ltd. 3.5%
  • 4.1% - Chesswood Group Ltd.

    Provides commercial equipment financing services to small and medium businesses in Canada and the U.S.

  • 4.0% - Intertape Polymer Group Inc.

    Develops and manufactures a variety of pressure sensitive papers, films and protective packaging for industrial and retail use.

  • 3.7% - iShares S&P/TSX Capped Energy Index ETF

    A portfolio of the thirteen largest energy companies in Canada by market capitalization.

  • 3.6% - Yellow Pages Ltd.

    A Canadian digital media and marketing company that operates online properties such as, Canada411 and

  • 3.6% - Morguard REIT

    The Trust owns a diversified portfolio of 47 office, shopping centres and industrial properties across six provinces .

  • 3.6% - Labrador Iron Ore Royalty Corp.

    The company receives a royalty and per tonnage commission on all iron ore products produced, sold and shipped by Iron Ore Company of Canada.

  • 3.5% - Transcontinental Inc.

    A leading flexible packaging and printing company with operations in Canada, the U.S. and Latin America.

  • 3.5% - Information Services Corp.

    Provides registry and information services for public data and records .

  • 3.5% - Western Forest Products Inc.

    An integrated forest products company focused on log and lumber sales globally .

  • 3.5% - Leon's Furniture Ltd.

    Canada's largest retailer of furniture, appliances and electronics and owns The Brick brand .


During the second quarter, small cap stocks globally outperformed their large cap peers. The MSCI All Country Small Cap Index was up 5% (in US dollars) versus the MSCI All Country Large Cap Index which was up 3% (in US dollars). Investors continue to rotate into small cap stocks in anticipation of higher domestic and global growth over the next year as life starts to normalize after COVID. Canadian and U.S. economies remain in ‘Goldilocks’ mode – ‘not too hot, not too cold’ – meaning despite the strong economic recovery interest rates remain low for now. Small cap stocks remain in the ‘sweet spot’ of investing, benefiting from pricing power, strong pent-up consumer demand, relatively low valuations, and most importantly faster earnings growth than larger companies. Recent headlines about inflation have on some days spooked investors to hit the sell button. We believe that in the short-term, inflation remains well contained to a few select industries. So far there has been no evidence of wage inflation, which is the key indicator of sustaining and rising inflation. We believe that the Matco Small Cap Fund is well-positioned to benefit from the ‘Goldilocks’ economy. If inflation does increase, small cap companies have the pricing power to push through higher costs, increasing their profit margins in the process. The Fund’s underlying investment characteristics remain very attractive. As of June 30th, the Fund had a dividend yield at 4.1%, high return on equity at 28% and a low valuation with a trailing price to earnings ratio of 9.8 times.

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.