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Fund Overview

This fund is designed for investors who …

  • Seek capital preservation and steady income generation, as well as attractive long-term growth potential.
  • Have a low to medium risk tolerance.
  • Have a long-term investment horizon.

Investment Objectives

  • Achieve a long-term global return through an appropriate stock selection and by taking advantage of interest rate and currency rate shifts on world markets.
  • Invest primarily in debt instruments of foreign issuers that may be denominated in other currencies than the Canadian dollar and have different maturity dates. The issuers of securities may be established worldwide, including Canada and emerging countries.

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

Summary

Volatility:

Low / Average

Category: Fixed Income
Start Date: January 25, 2013
RRSP Admissibility: Yes, 100% eligible

Benchmark:

  • 70%: Merrill Lynch Global High Yield BB/B Index 2% Issuer Constrained (hedged to the Canadian dollar)
  • 15%: Barclays Capital Global Aggregate Credit Index (hedged to the Canadian dollar)
  • 15%: FTSE TMX Universe

Assets*: $240,188,081
Number of Securities: 579

Target Asset Mix:

  • Short term: 0%
  • Global and Canadian government and corporate bonds: 100%

*As at May 24, 2019

Portfolio Management

Managers

  • External Managers: Amundi Canada inc., Manulife Investment Management Limited (US) et Manulife Investment Management Limited (Hong Kong)

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

Cash and Cash Equivalent5,40%
iShares iBoxx $ High Yield Corporate Bond Fund5,10%
United States Treasury Bond 2.38% May. 15, 20291,00%
United States Treasury Bond 3.00% Feb. 15, 20490,80%
United States Treasury Bond 2.75% Nov. 15, 20420,70%
United States Treasury Bond 3.13% Feb. 15, 20430,60%
The Enterprise Development Authority 12.00% Jul. 15, 20240,60%
Grupo Posadas SAB de CV 7.88% Jun. 30, 20220,60%
Joseph T. Ryerson & Son, Inc. 11.00% May. 15, 20220,60%
American Midstream Partners LP / American Midstream Finance Corp. 9.50% Dec. 15, 20210,50%
Federative Republic of Brazil 10.00% Jan. 01, 20230,50%
Golden Nugget Inc. 8.75% Oct. 01, 20250,50%
Government of Canada 0.75% Sep. 01, 20200,50%
Frontier Communications Corporation 8.50% Apr. 01, 20260,50%
MDC Partners Inc. 6.50% May. 01, 20240,50%
Japan Government Five Year Bond 0.10% Dec. 20, 20230,50%
Aleris International, Inc. Term Loan 0.00% Feb. 27, 20230,50%
Belden Inc. 3.38% Jul. 15, 20270,50%
Freedom Mortgage Corporation 8.13% Nov. 15, 20240,50%
Avation Capital SA 6.50% May. 15, 20210,50%
United States Treasury Bond 2.38% Feb. 29, 20240,50%
Blue Racer Midstream LLC / Blue Racer Finance Corp. 6.13% Nov. 15, 20220,50%
HCA Inc. 5.63% Sep. 01, 20280,50%
Republic of Singapore 3.25% Sep. 01, 20200,50%
Shelf Drilling Holdings, Ltd. 8.25% Feb. 15, 20250,40%
Net asset value as at May 24, 2019
240 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 Global Fixed Income Portfolio, Series A posted a net return of 9.9% for 2019, versus -3.1% for 2018. The FDP Global Fixed Income Portfolio, Series I posted a net return of 11.2% for 2019.

  • The global high-yield bond market, as measured by the ICE BofA Merrill Lynch Global High Yield Index, posted a 13.4% return for 2019.
  • Unlike in 2018, credit spreads narrowed in 2019 due in part to central banks, including the U.S. Federal Reserve (Fed) and European Central Bank (ECB), changing their stance and returning 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 central banks’ shift in monetary policy and the downward trend in government bond yields, mainly in the United States, helped drive interest for riskier assets.

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