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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*: $192,836,057
Number of Securities: 698

Target Asset Mix:

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

*As at May 22, 2020

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 March 31, 2020

Cash and Cash Equivalent4.40%
iShares Core S&P 500 Index ETF (CAD- Hedged)4.10%
United States Treasury Bond, 3.00%, Feb. 15, 20491.30%
United States Treasury Bond, 2.38%, May. 15, 20291.00%
United States Treasury Bond, 2.75%, Nov. 15, 20420.90%
American Midstream Partners LP / American Midstream Finance Corp., 9.50%, Dec. 15, 20210.70%
Joseph T. Ryerson & Son, Inc., 11.00%, May. 15, 20220.60%
Japan Government Five Year Bond, 0.10%, Dec. 20, 20230.60%
United States Treasury Bond, 4.38%, Feb. 15, 20380.60%
The Enterprise Development Authority, 12.00%, Jul. 15, 20240.60%
CCO Holdings, LLC / CCO Holdings Capital Corp., 5.13%, May. 01, 20270.60%
Republic of Singapore, 3.25%, Sep. 01, 20200.50%
Aleris International, Inc. Term Loan, 0.00%, Feb. 27, 20230.50%
United States Treasury Bond, 3.13%, Feb. 15, 20430.50%
Avation Capital SA, 6.50%, May. 15, 20210.50%
MDC Partners Inc., 6.50%, May. 01, 20240.50%
Belden Inc., 3.38%, Jul. 15, 20270.50%
United States Treasury Bond, 2.00%, Nov. 15, 20260.50%
United States Treasury Note, 1.13%, Feb. 28, 20220.50%
Fannie Mae Pool, 3.00%, Dec. 01, 20490.50%
Freedom Mortgage Corporation, 8.13%, Nov. 15, 20240.40%
Spectacle Gary Holdings, LLC Term Loan B, 0.00%, Dec. 23, 20250.40%
Petrobras Global Finance BV, 5.09%, Jan. 15, 20300.40%
Schweitzer-Mauduit International, Inc., 6.88%, Oct. 01, 20260.40%
DynCorp International Inc. Term Loan B, 0.00%, Aug. 16, 20250.40%
Net asset value as at March 31, 2020
186 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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