Matco Small Cap Fund (Series F)
Fund Documents [LINK]    Fund Codes [LINK]     As at September 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

2010

Fund Net Asset Value

$63.4 Million

Portfolio Manager

Anil Tahiliani, MBA, CFA

Dividend Yield

4.4%

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

 

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Geographic Profile

Canadian-focused
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.

Strategy

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 September 30, 2021    
Annualized
Net of Fees 3M YTD 1Y 3Y 5Y 7Y 10Y Incep.
Series F -4.0% 11.8% 27.9% 1.5% 4.3% 4.7% 8.4% 7.6%

Growth of $10,000 since inception

Cumulative Returns

  3M YTD 1Y 3Y 5Y 7Y 10Y Incep.
Series F -4.0% 11.8% 27.9% 4.6% 23.6% 38.3% 124.8% 133.3%

 

  • 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

  Cash 5.0%
  goeasy Ltd. 4.5%
  Intertape Polymer Group Inc. 4.0%
  Chesswood Group Ltd. 4.0%
  Leon's Furniture Ltd. 3.8%
  MCAN Mortgage Ltd. 3.7%
  Yellow Pages Ltd. 3.6%
  Bridgemarq Real Estate Services Inc. 3.5%
  Richards Packaging Products Inc. 3.5%
  Western Forest Products Inc. 3.5%
  • 5.0% - Cash

  • 4.5% - goeasy Ltd.

    A financial services company that provides non-prime and lending services across Canada.

  • 4.0% - Intertape Polymer Group Inc.

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

  • 4.0% - Chesswood Group Ltd.

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

  • 3.8% - Leon's Furniture Ltd.

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

  • 3.7% - MCAN Mortgage Corp.

    Invests in a diversified portfolio of Canadian mortgages, commercial loans and real estate investments.

  • 3.6% - Yellow Pages Ltd.

    A Canadian digital media and marketing company that operates online properties such as YP.ca, Canada411 and 411.ca.

  • 3.5% - Bridgemarq Real Estate Services Inc.

    Provides services to real estate brokers and their agents under the Royal LePage, Via Capitale Real Estate Network and Johnston & Daniel banners.

  • 3.5% - Richards Packaging Income Fund

    The third largest packaging distributor in North America targeting small to medium sized businesses.

  • 3.5% - Western Forest Products Inc.

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

Outlook

For the first six months of 2021, small cap stocks outperformed their large cap peers globally. However, during the third quarter market pullback, large cap stocks declined less. Investors rotated into defensive large cap companies on better-than-expected earnings and higher interest rate concerns, as they pivoted into a defensive portfolio. Given we are still in the early part of economic cycle, we believe that small cap companies will benefit more from the cycle through higher earnings growth and eventually more capital appreciation. The Fund remains well diversified and provides a hedge against falling commodity prices. The Fund’s underlying investment characteristics remain very attractive. As of September 30th, the Fund had a dividend yield at 4.4%, high return on equity at 29% and a low valuation with a trailing price to earnings ratio of 8.7 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.