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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*: $237,382,645
Number of Securities: 645

Target Asset Mix:

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

*As at April 30, 2018

Portfolio Management

Managers

  • External Managers: Amundi Canada inc., Manulife Asset Management (US) LLC et Manulife Asset Management (Hong Kong) Limited
    Read the investment approach.

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 6.90%
Mexico City Airport Trust  5.50%  Jul. 31, 2047 0.60%
Republic of Ireland  3.90%  Mar. 20, 2023 0.60%
Government of Canada  1.75%  Mar. 01, 2023 0.60%
Stoneway Capital Corporation  10.00%  Mar. 01, 2027 0.60%
Federative Republic of Brazil  10.00%  Jan. 01, 2023 0.60%
CWGS Group, LLC Term Loan B  0.00%  Nov. 08, 2023 0.50%
CCO Holdings, LLC / CCO Holdings Capital Corp.  5.13%  May. 01, 2027 0.50%
Joseph T. Ryerson & Son, Inc.  11.00%  May. 15, 2022 0.50%
Shelf Drilling Holdings, Ltd.  8.25%  Feb. 15, 2025 0.50%
Scientific Games International, Inc. Term Loan B5  0.00%  Aug. 14, 2024 0.50%
Golden Nugget Inc.  8.75%  Oct. 01, 2025 0.50%
JBS USA LUX SA / JBS USA Finance, Inc.  6.75%  Feb. 15, 2028 0.50%
Freedom Mortgage Corporation  8.13%  Nov. 15, 2024 0.40%
Aleris International, Inc. Term Loan  0.00%  Feb. 08, 2023 0.40%
Horizon Pharma, Inc.  6.63%  May. 01, 2023 0.40%
Belden Inc.  3.38%  Jul. 15, 2027 0.40%
Frontier Communications Corporation  8.50%  Apr. 01, 2026 0.40%
Republic of Ireland  3.40%  Mar. 18, 2024 0.40%
Wachovia Capital Trust III  5.57%  Mar. 29, 2049 0.40%
Post Holdings, Inc.  5.00%  Aug. 15, 2026 0.40%
Avation Capital SA  6.50%  May. 15, 2021 0.40%
Republic of Singapore  3.25%  Sep. 01, 2020 0.40%
Light Servicos de Eletricidade SA / Light Energia SA  7.25%  May. 03, 2023 0.40%
Societe Generale SA  1.00%  Dec. 31, 2099 0.40%
Net asset value as at September 30, 2018
232 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 Global Fixed Income Portfolio, Series A posted a net return of -1.3% for the first six-month period of 2018, versus 1.8% for 2017. The FDP Global Fixed Income Portfolio, Series I posted a net return of -0.63% for the first half of 2017.

  • Contrary to the trend in 2017, credit spreads widened throughout the period. Measured using the Bloomberg Barclays Global High Yield Index, these spreads grew by 77 basis points during the first six-month period.
  • This fluctuation, combined with increasing government bond yields, led to a dip in bond prices, thereby explaining the negative returns. Canada and the U.K. followed suit with the U.S. Federal Reserve, whose monetary tightening cycle (administered rate increase) is already well underway.

As central banks look to withdraw emergency policies implemented in the wake of the financial crisis and return to more normal market conditions, synchronized global economic growth, the U.S. income tax reform and corporate profits should improve companies’ bottom lines.

However, the overnight rate increase among several central banks, along with the heightened risk of a trade war, are generating uncertainty across markets.

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