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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*: $446,711,204
Number of Securities: 174
Bond Duration: 4.28 yrs

Target Asset Mix

  • Bonds: 100%
  • Short Term: 0%

*As at April 30, 2018

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 September 30, 2018

Cash and Equivalents 14.00%
Government of Canada Treasury Bill  4.00%  June 01, 2041 5.30%
Canada Housing Trust No. 1  2.65%  Mar. 15, 2022 4.00%
Royal Bank of Canada  2.03%  Mar. 15, 2021 2.70%
Province of Ontario  6.50%  Mar. 08, 2029 2.40%
Province of Quebec  3.50%  Dec. 01, 2045 2.10%
Province of Quebec  6.00%  Oct. 01, 2029 2.00%
Bank of Montreal 2.10%   Oct. 06, 2020 1.90%
Province of Ontario  4.60%  June 02, 2039 1.90%
Rogers Communications Inc.  5.34%  Mar. 22, 2021 1.70%
City of Sherbrooke  2.20%  Dec. 10, 2019 1.70%
Canada Housing Trust No. 1  2.35%  June 15, 2023 1.60%
Province of Ontario  5.60%  Jun. 02, 2035 1.60%
City of Mirabel  2.25%  Sep 09, 2019 1.60%
HSBC Bank Canada  3.25%  Sep. 15, 2023 1.50%
Province of Quebec  5.00%  Dec. 01, 2041 1.50%
Granite REIT Holdings Limited Partnership  3.79%  Jul. 05, 2021 1.40%
HSBC Bank Canada  2.94%  Jan. 14, 2020 1.40%
Province of Ontario  2.60%  Jun. 02, 2025 1.40%
Canadian Imperial Bank of Commerce  1.64%  Jul. 12, 2021 1.40%
Canada Housing Trust No. 1  2.25%  Dec. 15, 2025 1.30%
Federation des Caisses Desjardins du Quebec  3.06%  Sep 11, 2023 1.30%
Granite REIT Holdings Limited Partnership  3.87%  Nov. 30, 2023 1.20%
Province of Quebec  5.00%  Dec. 01, 2038 1.20%
Province of Ontario  3.50%  Jun. 02, 2043 1.20%
Net asset value as at September 30, 2018
320 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 Interim Management Report of Fund Performance (Operating Results), June 2018.

The FDP Canadian Bond Portfolio, Series A posted a net return of 0.2% for the first six month period of 2018, versus 2.0% for 2017. The FDP Canadian Bond Portfolio, Series I posted a net return of 0.7% for the first half of the year.

  • The bond market, as measured by the FTSE TMX Canada Universe Bond Index, posted a 0.6% return. The 10-year government of Canada bond yield increased by 11 basis points over the period.
  • Central banks aim to withdraw the emergency policies implemented in the wake of the great financial crisis and return to more normal conditions.This change of purpose in said banks’ strategies had repercussions on all markets, even if the yield increase should occur gradually and predictably.
  • The U.S. Federal Reserve has already begun this rate increase cycle several quarters ago. Meanwhile, the Bank of Canada increased its bank rate by 125 basis points since the beginning of the tightening cycle. In July, said rate settled at 1.75%.

Canada’s overnight rate increases boosted bond yields, mostly on the yield curve’s short term segment, thereby impeding bond returns. The Canadian bond yield curve flattened, thereby considerably tightening the spread between long- and short-term yields. Moreover, credit spreads between corporate and government bonds have widened in 2018.

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