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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*: $157,953,455
Number of Securities: 675

Target Asset Mix:

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

*As at April 30, 2023

Portfolio Management

Managers

  • Amundi Canada inc., Manulife Investment Management Limited (US) et Manulife Investment Management Limited (Hong Kong), Professionals’ Financial – Mutual Funds Inc.

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, 2023

Cash and Cash Equivalent 5.9%
iShares 0-5 Year Investment Grade Corporate Bond ETF 5.5%
iShares iBoxx $ Investment Grade Corporate Bond ETF 5.4%
United States Treasury Note, 2.75%, Aug. 15, 2032 0.9%
ABRA Global Finance, 11.50%, Mar. 02, 2028 0.9%
United States Treasury Note, 2.88%, May 15, 2032 0.8%
United States Treasury Note, 3.50%, Feb. 15, 2033 0.8%
Grupo Aeromexico, SAB de CV, 8.50%, Mar. 17, 2027 0.6%
ProFrac Services LLC, Term Loan DD, 12.65%, Mar. 04, 2025 0.6%
AEGEA Finance Sarl, 6.75%, May 20, 2029 0.6%
United States Treasury Note, 1.88%, Feb. 15, 2032 0.6%
Avation Capital SA, 8.25%, Oct. 31, 2026 0.6%
CVR Energy, Inc., 5.25%, Feb. 15, 2025 0.5%
Transportes Aereos Portugueses, SA, 5.63%, Dec. 02, 2024 0.5%
Ecopetrol SA, 8.88%, Jan. 13, 2033 0.5%
CCO Holdings, LLC / CCO Holdings Capital Corp., 4.75%, Feb. 01, 2032 0.5%
Trinity Industries, Inc., 7.75%, Jul. 15, 2028 0.4%
United States Treasury Bond, 3.00%, Aug. 15, 2052 0.4%
McGraw-Hill Education, Inc., 8.00%, Aug. 01, 2029 0.4%
Cidron Aida Finco SARL, 5.00%, Apr. 01, 2028 0.4%
Energean PLC, 6.50%, Apr. 30, 2027 0.4%
Vistra Operations Company LLC, 7.75%, Oct. 15, 2031 0.4%
VistaJet Malta Finance PLC / Vista Management Holding Inc, 6.38%, Feb. 01, 2030 0.4%
Bombardier Inc., 7.88%, Apr. 15, 2027 0.4%
First Brands Group LLC, Term Loan, 10.88%, Mar. 30, 2027 0.4%
Net asset value as at September 30, 2023 159 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, 2022.

The FDP Global Fixed Income Portfolio, Series A posted a net return of -9.9% for 2022, versus 2.5% for 2021. The FDP Global Fixed Income Portfolio, Series I posted a net return of -8.8% for 2022. The global high-yield bond market, as measured by the ICE BofAML Global High Yield Index, posted a -11.9% return. This asset class suffered from the high inflation and fear of a recession that has emerged in the past six months. Credit spreads for both high-yield bonds and bank loans widened in 2022. As a result, investors now require a higher risk premium for these fixed-income securities.

Because of slowing economic growth and soaring inflation, the Canadian and U.S. central banks decided to raise their key interest rates and end their bond purchasing programs, causing the yield curve to increase.

The FDP Global Fixed Income Portfolio holds a large allocation to corporate high- yield bonds. Credit spreads rapidly widening impeded riskier high-yield corporate bonds. Against this backdrop, the portfolio manager benefited from the portfolio holdings in higher-quality securities during the year and from rising rates to increase the portfolio’s duration.
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