Our Philosophy

Logic and methodology are baked into our DNA. We are a conservative investment manager – this means that we use our four pillars to guide us as we focus on building and preserving wealth for our clients.

The Matco Investment philosophy is based on four pillars:

1. Systematic Process

We use our M-Factor process driven investment approach designed to provide robust and resilient long-term investment returns. This process is focused on key investment factors that have been identified, backtested and proven over time. The process is focused on long-term risk management over short-term performance. We take the emotion out of investing during the ups and downs of the markets by building resilient portfolios.

2. Being Different

We do not manage to benchmarks. We manage assets based on an investment process that has been backtested and focused on providing the best risk adjusted returns for our clients. Our sector weights are based on our process and not the weight in the specific benchmark index. We are comfortable being different than our peers and our benchmarks since we prefer to stand apart from the crowd.

3. Conviction Portfolios

Our equity portfolios are focused on the 30-35 best companies based on our strict M-Factor investment process.  A concentrated portfolio to ensure a better capital allocation discipline and allows the manager to better understand the key investment characteristics driving each company.

4. Income

All our portfolios are focused on generating quarterly income. Our equity portfolios consist of companies that can sustainably pay and grow their dividend over time. The ultimate goal is to generate income and capital gains on an after-tax and fee basis so clients can meet their long-term financial objectives. We like to get paid to wait for capital appreciation.


A few things we don’t do…

Market Timing

Our portfolios will be 95% invested in the underlying securities as per the Fund’s mandate. We do not try to time the market or guess the next recession or boom. Timing involves two decisions, first when to sell and then when to buy – getting these both right consistently involves luck and not skill. As money managers, we are focused on long-term capital growth and income for clients.

Chase Fads

In the investment world, every year fads come and go and speculative bubbles in the “hottest” new sector being hyped by marketers pop up. These companies will not meet our M-Factor investment process and as a result, we are likely to miss the latest concept story that investors are in love with; and we are fine with that since we will stick to our investment process.

Buy Junk Bonds

We only buy investment-grade bonds for our investment portfolios. The added credit risk in the high yield bond market does not typically reward investors with greater returns. We focus on federal, provincial, municipal and investment-grade bonds for our fixed income allocation.

Use Leverage or Short

As conservative investment managers, we do not use leverage to enhance returns. Using leverage can significantly magnify portfolio volatility and can cause portfolio losses that are difficult to recover. We do not short (bet that stock prices will fall) stocks, this is a risky bet that could lead to large losses. We prefer to systematically invest clients’ assets and not gamble with them.

What you can expect

A discovery phase

As investment professionals with a fiduciary duty, we always put our clients’ interests above everything else. Our first meeting is a discovery phase to better understand your financial needs and objectives. This will cover items such as your retirement goals, family situation, occupation, risk tolerance, current compensation and assets. If you have a complex financial situation we have in-house professionals that can help or we may recommend you to other tax, legal, estate professionals that we work with.

Long-term planning

We put together a long-term asset mix recommendation and implementation plan based on where we can add value to your financial goals. A portfolio manager will meet with you either in person or virtually to go through the recommendations and answer any questions.

Ongoing Communication

As a client you will receive ongoing communication from us which includes the following:

  • Online access to your portfolio
  • Regular blogs about timely investment topics
  • Quarterly newsletter which includes a one-page write up on each of the Matco Funds discussing fund activity, sector weights, performance, top ten holdings and outlook
  • Annual Outlook presentation which discusses the key investment themes for the year and our portfolio positioning
  • Monthly client statements
  • Annual portfolio review meeting in person or virtually

Our service offerings

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