Fund Overview
This fund is designed for investors who…
- Seek steady income and diversification of their assets.
- Are concerned with security and capital growth and whose risk tolerance is low.
Investment Objectives
- Achieve steady income and ensure invested capital preservation.
- Invest primarily in debt instruments of Canadian and foreign issuers.
- May also invest in equity securities of Canadian and foreign issuers paying dividends or income.
Fund Facts are published once a year. Read them now.
Summary
Volatility:
Low Category: Canadian Bond
Start Date: March 31, 1978
RRSP Admissibility: yes, 100% eligible
Benchmark:
- 50% DEX short term
- 50% DEX mid-term
Assets*: $292,037,814
Number of Securities: 93
Target Asset Mix
- Bonds: 100%
- Short Term: 0%
*As at April 30, 2023
Portfolio Management
Managers
- Professionals’ Financial – Mutual Funds Inc.
Main Securities as at September 30, 2023
| Province of Ontario, 2.15%, Jun. 02, 2031 | 4.5% |
| The Toronto-Dominion Bank, 2.67%, Sep. 09, 2025 | 3.4% |
| Government of Canada, 2.00%, Jun. 01, 2032 | 3.4% |
| Canadian Imperial Bank of Commerce, 2.00%, Apr. 17, 2025 | 3.3% |
| Province of Ontario, 2.05%, Jun. 02, 2030 | 3.2% |
| Bank of Montreal, 5.04%, May 29, 2028 | 2.9% |
| National Bank of Canada, 5.30%, Nov. 03, 2025 | 2.9% |
| Government of Canada, 1.75%, Dec. 01, 2053 | 2.8% |
| HSBC Bank Canada, 4.81%, Dec. 16, 2024 | 2.7% |
| Province of Québec, 1.50%, Sep. 01, 2031 | 2.6% |
| Fédération des caisses Desjardins du Québec, 1.09%, Jan. 21, 2026 | 2.6% |
| Royal Bank of Canada, 4.63%, May 01, 2028 | 2.4% |
| The Bank of Nova Scotia, 5.50%, Dec. 29, 2025 | 2.4% |
| Province of Ontario, 3.50%, Jun. 02, 2043 | 2.2% |
| The Bank of Nova Scotia, 2.95%, Mar. 08, 2027 | 2.2% |
| Province of Québec, 5.00%, Dec. 01, 2038 | 2.2% |
| Province of Québec, 3.50%, Dec. 01, 2045 | 2.0% |
| Government of Canada, 1.50%, Jun. 01, 2031 | 1.9% |
| Royal Bank of Canada, 3.37%, Sep. 29, 2025 | 1.9% |
| Pembina Pipeline Corporation, 3.54%, Feb. 03, 2025 | 1.9% |
| Province of Québec, 3.25%, Sep. 01, 2032 | 1.8% |
| Province of Ontario, 3.45%, Jun. 02, 2045 | 1.8% |
| Province of Ontario, 4.70%, Jun. 02, 2037 | 1.6% |
| Province of Ontario, 4.60%, Jun. 02, 2039 | 1.5% |
| CDP Financial Inc., 3.70%, Mar. 08, 2028 | 1.5% |
| Net asset value as at September 30, 2023 | 270 M $ |
Returns
Returns *
* Returns for the first and last year are not annualized
* Non annualized return
$1,000 Invested Amount since inception
Note that the results shown are for information purposes only. Commissions, trailing commissions, management fees and expenses all may be associated with investments ins FDP Portfolio’s. Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total returns, including changes in portfolio value and reinvestment of all distributions, but do not take into account sales, redemption, distribution or optional charges or income taxes payable by an investor that would have reduced returns. References to indices are for information purposes only. Comparisons with indices may vary according to the portfolio size, investment timing, and mandate objective. The funds’ securities are not insured by the Canada Deposit Insurance Corporation. Mutual funds are not guaranteed, their value changes frequently, and past performance may not be repeated.
Managers' Comments
The Managers’ Comments are taken from the Annual Management Report of Portfolio Performance (Operating Results), as at December 31, 2022.
The FDP Canadian Bond Portfolio, Series A posted a net return of -11.9% for 2022, versus -2.7% for 2021.
The bond market, as measured by the FTSE Canada Universe Bond Index, posted a -11.7% return. The negative performance of the index was mainly attributable to rising interest rates driven by persistent high inflation. Recession fears also weighed heavily on corporate bonds.
In 2022, the U.S. Federal Reserve and the Bank of Canada significantly hiked their key interest rates in response to inflationary pressures exerted on their respective economies. Central banks’ interventions partly achieved their stated goal, but the market is worried that interest rates may remain high for longer than previously anticipated due to the strong labour market.
The 10-year government of Canada bond yield climbed from 1.43% to 3.30% in 2022. While the 10-year yields increased substantially, short-term yields appreciated even more, causing the yield curve to invert. Both provincial and corporate credit spreads widened in 2022 amid slowing economic growth and soaring inflation.
