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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*: $350,967,397
Number of Securities: 117
Target Asset Mix

  • Bonds: 100%
  • Short Term: 0%

*As at May 22, 2020

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, 2019

Principaux titres au 31 mars 2020

Canadian Imperial Bank of Commerce, 1.64%, Jul. 12, 20214.0%
Province of Ontario, 3.50%, Jun. 02, 20433.8%
Province of Ontario, 2.60%, Jun. 02, 20273.5%
Province of Ontario, 2.40%, Jun. 02, 20263.4%
Province of Ontario, 2.60%, Jun. 02, 20253.1%
Province of Quebec, 3.75%, Sep. 01, 20242.7%
Government of Canada, 2.25%, Jun. 01, 20292.7%
Canada Housing Trust No. 1, 2.35%, Jun. 15, 20232.4%
Government of Canada, 3.50%, Dec. 01, 20452.4%
The Bank of Nova Scotia, 2.38%, May. 01, 20232.4%
Dollarama Inc., 3.55%, Nov. 06, 20232.3%
Royal Bank of Canada, 1.65%, Jul. 15, 20212.3%
The Empire Life Insurance Company, 3.38%, Dec. 16, 20262.2%
Province of Quebec, 3.50%, Dec. 01, 20452.2%
Canada Housing Trust No. 1, 2.65%, Mar. 15, 20282.0%
Royal Bank of Canada, 3.30%, Sep. 26, 20231.9%
HSBC Bank Canada, 2.25%, Sep. 15, 20221.,8%
Province of Quebec, 6.25%, Jun. 01, 20321.7%
Government of Canada, 5.75%, Jun. 01, 20291.7%
Granite REIT Holdings LP, 3.79%, Jul. 05, 20211.7%
Province of Ontario, 5.85%, Mar. 08, 20331.6%
Province of Quebec, 5.00%, Dec. 01, 20411.5%
Crombie Real Estate Investment Trust, 3.68%, Aug. 26, 20261.5%
Province of Ontario, 5.60%, Jun. 02, 20351.4%
Royal Bank of Canada, 1.97%, Mar. 02, 20221.3%
Net asset value as at March 31, 2020
337 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, 2019.

The FDP Canadian Bond Portfolio, Series A posted a net return of 6.3% for 2019, versus 0.6% for 2018. The FDP Canadian Bond Portfolio, Series I posted a net return of 7.3% for 2019.

  • The bond market, as measured by the FTSE Canada Universe Bond Index, posted a 6.9% return.
  • The 10-year government of Canada bond yield declined by 26 basis points in 2019, causing the spread between long- and short-term yields to narrow significantly.

This decline was triggered by the global economic growth slowing down that compelled major central banks, including the U.S. Federal Reserve (Fed) and European Central Bank (ECB) to change their stance and return to a more accommodative monetary policy. The Fed cut its key interest rate three times in 2019.

Meanwhile, the Bank of Canada held steady, and provincial and corporate bond credit spreads tightened.

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