Founded in 2006, Matco Financial is an independent, privately held discretionary asset management firm. Originally created to manage and service assets of seven family offices, Matco Financial evolved to offer the benefits of its extensive investment management experience to individual investors, institutions, foundations, endowments, condominium corporations, trusts, and not-for-profit organizations.
“The mandate behind creating Matco Financial remains twofold: creating an independent investment asset management firm, and create a place where the founding partners can better manage their own financial assets,” says Jason Vincent, President and COO.
Investors can access any one or a combination of Matco’s six investment strategies. Matco’s Portfolio Managers work with each client to establish a portfolio that best meets their financial goals. To provide exceptional service, the firm’s portfolio managers are always available to the clients, building lasting relationships, and making clients understand the decisions that are made for their benefit. The firm provides well diversified investment solutions designed to protect capital and achieve long-term growth without exposing clients to unnecessary or excessive risk.
Matco Financial has been offering “growth at a reasonable price” philosophy since the beginning. On a scale between one and 10 – with one being ultra conservative and 10 being ultra aggressive investment strategy – Vincent places Matco Financial’s investment philosophy between four and six. Matco Financial focuses on lower volatility income and equity income producing Canadian securities and North American energy stocks.
Matco’s emphasis on managing risk and volitilty has attracted the clients who wanted quality investments that were safer than those offered in the mainstream marketplace before 2008, and this strategy has been becoming mainstream through the economic downturn, and these public sentiments continue to this day, bringing more and more investors onboard Matco Financial.
“We have been cognisant about not taking unnecessary risk since the beginning. And not that we only kept clients through the period, but we gained clients because of our conservative approach. Walking from 2008 to today, I think that our experience, philosophy, our clientele, and our transparent regulatory structure were and remain to be tremendous assets to our business,” says Vincent.
Sentiments of the Investor Public
While the markets have improved in the past few years, the investor public remains skeptical about the macroeconomic issues such as unemployment, the central banks’ stimuli, the U.S. debt ceiling, European debt crisis, and remains wary of these markets.
“There is still a lingering ‘hangover’ effect in connection to these macroeconomic attributes, and while the markets and the sentiment continue to improve, it will take another several years to see some of these issues being fully dealt with. Only then the investor sentiment to return to normal,” summarizes Vincent.
As an asset management firm, Matco Financial focuses on investing in “businesses”, not “stocks”. The firm does not invest in excessive number of stocks, but rather in a lower number of well researched companies that provide a long term sustainable growth for the client. The firm’s analysts put extensive effort and time towards understanding these companies, looking at the quality, meeting with management to understand their companies, and buying into their business plan; however, re-visiting the ‘thesis’ on these companies is also a part of the investment process, and decisions to sell for the highest return are also necessary.
“We are active investors and we always want to add value to the portfolio from the security perspective, as well as from the industry sector perspective, and our clients like that we are not just ‘buying the index’ so to speak. We would rather be a mile deep and an inch wide, rather than the other way around. We believe this market favours active management and our results demonstrate this. We have attracted clients that understand and appreciate that there is merit in differentiating between businesses from the perspective of risk and long-term growth as not all companies are alike. We continually challenge ourselves to find investment ideas within the framework of our philosophy that will strengthen our portfolios and ultimately provide value for our clients,” says Vincent.
Canadian Bonds – Actively managed portfolio with mid-term, investment grade laddered bonds. Used to offset market volatility for clients.
Balanced Mandate – Actively managed strategic asset allocation utilizing all Matco mandates. Great anchor for clients as a core holding
Canadian Equity Income – Actively managed large-mid cap strategy. Consistent income generation and long-term capital appreciation.
Global Equity – Actively managed large to mega cap stategy. Consistent income generation with lower risk and volatility. Great compliment for a Canadian centric investor.
Small Cap – Actively managed small cap strategy which offers unigue exposure to high growth companies and a great compliment to a core large cap strategy
Energy – Pure North American energy oil and gas strategy with a bias towards mid and small cap companies with access to unique private investments
To provide independent investment counselling and discretionary asset management, Matco Financial maintains a high standard, with its professionals holding designations such as Chartered Financial Analyst (CFA) or Chartered Accountant (CA), Certified Financial Planner (CFP), and Trust & Estate Practitioner (TEP)designations. In terms of regulation, Matco Financial abides by CFA Institute’s CFA charter holder program and its Asset Manager Code of Professional Conduct, upholding the highest standards of ethics, integrity, professionalism, and most importantly, a client-centric mentality.
The prudent investment strategy continues to pay off, as the firm continues to grow between 18 and 25 per cent annually. So the Matco Financial business plan runs quite a straight line – becoming the largest independent asset management firm in Canada. While the journey may be long, according to Vincent, Canadian asset management landscape saw massive consolidation, and it is dominated by a few large players, such as Canadian banks and large non-independent firms.
“We focus our business on three things – performance, service and sales. We are motivated to produce solid, risk-adjusted performance numbers as we do, we will continue to increase our client numbers on both institutional and private client sides,” concludes Vincent.