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For its outstanding performance…

Winner of a FundGrade A+® Award in 2020 at Fundata’s from Fundata Canada inc., in the in the Canadian Neutral Balanced funds category, competing against 410 other funds.

Fund Overview

This fund is designed for investors who…

  • Value a performance record of steady income as well as capital growth.
  • Have a low to medium risk tolerance and mid-to long-term investment horizon.

Investment Objectives

  • Achieve a return comprised of a steady income and medium- and long-term capital growth.
  • Invest primarily in debt instruments of Canadian and foreign issuers, and in equity securities of Canadian and foreign issuers.

Fund Facts are published once a year. Read them now.

Summary

Volatility

Low / Average

Category: Canadian income, balanced
Start Date: March 31, 1978
RRSP Admissibility: yes, 100% eligible

Benchmark:

  • 45% DEX Short Term/Mid-term
  • 35% S&P/TSX Composite Index
  • 15% MSCI World (in CA$)
  • 5% 91-day Treasury Bonds

Assets*: $530,438,839
Number of Securities: 13
Target Asset Mix:

  • Bonds and Fixed Income : 36.8%
  • Canadian Equities: 38.3%
  • International Equities: 7.1%
  • American Equities: 14.8%
  • Cash and Equivalents: 3.1%

*As at May 21, 2021

Portfolio Management

Managers

The Funds’ Investment Policies are developed by the Fund Manager’s Investment Committee, which meets regularly to make any necessary changes. The Committee includes both internal and external investment experts, as well as representatives of professional association shareholders.

Main Securities as at March 31, 2021

FDP Canadian Equity Portfolio 36.4%
FDP Canadian Bond Portfolio 32.0%
FDP Global Equity Portfolio 9.1%
SPDR S&P 500 ETF Trust 6.2%
FDP Global Fixed Income Portfolio 4.7%
Cash and Cash Equivalent 3.5%
iShares Russell 2000 Index Fund ETF 3.2%
iShares Core MSCI EAFE ETF 3.1%
FDP Emerging Markets Equity Portfolio 1.1%
FDP US Index Equity Portfolio 0.6%
Net asset value as at March 31, 2021 524 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, 2020.

The FDP Balanced Portfolio posted a net return of 8.9% for 2020, versus 15.2% for 2019.

In the context of a global economy weakened by a pandemic, governments and central banks introduced unprecedented fiscal and monetary measures, which relieved markets and economies. The U.S. Federal Reserve pledged to maintain interest rates near zero for an extended period and expanded its quantitative easing program. For its part, the Bank of Canada has announced quantitative easing measures, purchasing government of Canada, provincial and corporate bonds and lowering its bank rate. Markets rebounded to new highs from the lows reached in March.

In the last few months of 2020, positive news about COVID-19 vaccines, central banks’ intention to maintain an accommodating monetary policy for an extended period and the U.S. President-elect’s plan to introduce additional stimulus contributed to market performance late in the year.

Accordingly, the bond market, as measured by the FTSE Canada Universe Bond Index, posted an 8.7% return. The 10-year government of Canada bond yield declined by 103 basis points in 2020, causing the spread between long- and short-term yields to narrow significantly. Credit spreads for both provincial and corporate bonds widened in the first quarter of 2020 before narrowing in the following quarters in response to positive news about COVID-19 vaccine development and the governments’ and central banks’ support of markets and economies.

The Canadian stock market, as measured by the S&P/TSX Composite Index, posted a 5.6% return for 2020. Information Technology (84.2%), thanks to the strong performance of e-commerce company Shopify, and Utilities (23.3%), driven by gold stocks, contributed significantly to the index’s performance. Conversely, Energy (-26.2%), impeded by falling oil demand, and Health Care (-22.8%) detracted from index performance.

The U.S. stock market, as measured by the S&P 500 Index, posted a net return of 16.3% in Canadian dollars, in part due to the performance of large cap growth stocks such as Amazon, Apple, Microsoft, Alphabet and Facebook. The growth-style approach outperformed its value-style counterpart during the year, with each posting a 33.9% and a 0.5% return, respectively.

All eurozone markets yielded positive returns of 3.5%, while Asian markets also climbed by 17.6% in Canadian dollars.

Despite markets rebounding from their March 2020 lows, the impact of the pandemic on the global economic recovery remains uncertain. Vaccines’ efficacy and speed of rollout will significantly impact investors’ confidence in financial markets.

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