This fund is designed for investors who…
- Seek capital growth over the long-term in a diversified portfolio of American issuers.
- Want to participate in the indices of the American market.
- Have capital-growth objectives in the long term and whose risk tolerance is medium.
- Achieve long-term capital growth.
- Invest in securities included in one or more American stock market indices in proportion to their weight in such indices, with a minimum of 60% of the assets tracking the performance of S&P 500 market index, or favours investments whose returns track those of these indices.
Fund Facts are published once a year. Read them now.
Category: US Equity
Start Date: July 24, 2000
RRSP Admissibility: Yes, 100% eligible
Benchmark: S&P/500 Index not hedged to the Canadian dollar
Number of Securities: 9
Target Asset Mix:
- Short Term: 0%
- American Securities (S&P 500): 100%
- Other securities in other American indexes or sub-indexes: 0%
*As at May 21, 2021
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, 2021
|SPDR S&P 500 ETF Trust||53.7%|
|iShares Core S&P 500 Index ETF (CAD- Hedged)||24.3%|
|Invesco QQQ Trust Series 1||6.8%|
|iShares S&P 500 Value ETF||3.7%|
|Invesco S&P 500 Equal Weight ETF||3.1%|
|iShares Russell 2000 Index Fund ETF||3.0%|
|Industrial Select Sector SPDR Fund||2.9%|
|Cash and Cash Equivalent||2.3%|
|Net asset value as at March 31, 2021||43 M $|
* 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.
The Managers’ Comments are taken from the Annual Management Report of Portfolio Performance (Operating Results), as at December 31, 2020.
The FDP US Equity Portfolio, Series A posted a net return of 15.0% for 2020, versus 23.7% for 2019. The U.S. stock market, as measured by the S&P 500 Index, posted a net return of 16.3% in Canadian dollars. The Canadian dollar appreciated 1.8% against the U.S. dollar, which impeded returns. The index posted positive returns in part due to the performance of large cap growth stocks such as Amazon, Apple, Microsoft, Alphabet and Facebook. The growth-style approach outperformed its value-style counterpart during the year, with each posting a 33.9% and a 0.5% return, respectively.
Eight of the index’s eleven component sectors posted positive returns. The Information Technology and Consumer Discretionary sectors posted 43.5% and 33.3% increases, respectively. Conversely, falling oil prices—which went from USD61.06 in late December 2019 to USD48.52 as at December 31, 2020, representing a 20.5% decrease—negatively impacted the Energy sector, which posted a -33.1% return. Financials and Real Estate also fell, returning -3.0% and -3.5% respectively.
In the context of a global economy weakened by a pandemic, governments and central banks introduced unprecedented fiscal and monetary measures, which relieved markets and economies. Markets rebounded to new highs from the lows reached in March. The U.S. Federal Reserve pledged to maintain its key interest rate near zero indefinitely and expanded its quantitative easing program.
In the fourth quarter, positive news about COVID-19 vaccines, central banks’ intention to maintain an accommodating monetary policy for an extended period and the U.S. President-elect’s plan to introduce additional stimulus contributed to market performance and caused the Energy, Financials and Industrials sectors to rebound. As a result, the value-style approach outperformed its growth-style counterpart for large-, mid- and small-cap companies.
Despite markets generally rebounding from their March 2020 lows, the impact of the pandemic on the global economic recovery remains uncertain. Vaccines’ efficacy and speed of rollout will significantly impact investors’ confidence in financial markets.