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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)
    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 March 31, 2019

Cash and Cash Equivalent 5.10%
United States Treasury Bond 3.13% Nov. 15, 2028 1.30%
Government of Canada 0.75% Sep. 01, 2020 1.10%
Federative Republic of Brazil 10.00% Jan. 01, 2023 0.80%
United States Treasury Bond 3.13% Feb. 15, 2043 0.70%
United States Treasury Bond 2.75% Nov. 15, 2042 0.70%
Republic of Singapore 3.25% Sep. 01, 2020 0.70%
Republic of Ireland 3.90% Mar. 20, 2023 0.70%
Kingdom of Norway 3.75% May. 25, 2021 0.70%
United States Treasury Bond 4.38% Feb. 15, 2038 0.60%
Federative Republic of Brazil 10.00% Jan. 01, 2021 0.60%
United States Treasury Bond 2.38% Feb. 29, 2024 0.60%
United States Treasury Bond 2.50% Feb. 15, 2022 0.60%
CCO Holdings, LLC / CCO Holdings Capital Corp. 5.13% May. 01, 2027 0.50%
Grupo Posadas SAB de CV 7.88% Jun. 30, 2022 0.50%
Stoneway Capital Corporation 10.00% Mar. 01, 2027 0.50%
Republic of Ireland 3.40% Mar. 18, 2024 0.50%
The Enterprise Development Authority 12.00% Jul. 15, 2024 0.50%
Japan Government Five Year Bond 0.10% Dec. 20, 2023 0.50%
Blue Racer Midstream LLC / Blue Racer Finance Corp. 6.13% Nov. 15, 2022 0.50%
Golden Nugget Inc. 8.75% Oct. 01, 2025 0.50%
Joseph T. Ryerson & Son, Inc. 11.00% May. 15, 2022 0.50%
CWGS Group, LLC Term Loan B 0.00% Nov. 08, 2023 0.50%
Wachovia Capital Trust III 5.57% Mar. 29, 2049 0.50%
United States Treasury Bond 3.00% Feb. 15, 2049 0.40%
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 Interim Management Report of Fund Performance (Operating Results), June 2019.

The FDP Global Fixed Income Portfolio, Series A posted a net return of 6.8% for the first six-month period of 2019, versus -3.1% for 2018. The FDP Global Fixed Income Portfolio, Series I posted a net return of 7.5% for the first half of the year.

  • The global high-yield bond market, as measured by the ICE BofA Merrill Lynch Global High Yield Index, posted a 9.2% return over the first half of 2019.
  • Contrary to the prevailing situation in 2018, credit spreads narrowed in 2019.
  • This change was caused in part by the implementation of a new approach and more accommodative monetary policy by central banks, most notably the U.S. Federal Reserve and the European Central Bank, and by the lower risk of a major global economic slowdown.

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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