December 31, 2025
A fixed-income fund seeking to provide a high level of interest income with the potential for growth.
Is this fund right for you?
- You want to protect your money from inflation while also protecting it from large swings in the market.
- You want to invest in government and corporate bonds, as we well as other debt securities issued in Canada and around the world.
- You're comfortable with a low level of risk.
RISK RATING
How is the fund invested? (as of October 31, 2025)
| Name | Percent |
|---|---|
| Domestic Bonds | 81.8 |
| Foreign Bonds | 11.7 |
| Cash and Equivalents | 6.3 |
| Canadian Equity | 0.1 |
| US Equity | 0.1 |
| Name | Percent |
|---|---|
| Canada | 87.9 |
| United States | 11.7 |
| France | 0.3 |
| Australia | 0.1 |
| Name | Percent |
|---|---|
| Fixed Income | 93.5 |
| Cash and Cash Equivalent | 6.3 |
| Utilities | 0.1 |
| Consumer Goods | 0.1 |
| Financial Services | 0.1 |
| Other | -0.1 |
Growth of $10,000 (since inception)
For the period 10/05/2011 through 12/31/2025 tr.with $10,000 CAD investment, The value of the investment would be $14,920
Fund details (as of October 31, 2025)
| Top holdings | Percent (%) |
|---|---|
| Canada Government 3.25% 01-Jun-2035 | 10.0 |
| Ontario Province 3.60% 02-Jun-2035 | 3.5 |
| Quebec Province 4.40% 01-Dec-2055 | 2.4 |
| Canada Government 2.75% 01-Sep-2030 | 2.2 |
| Ontario Province 3.95% 02-Dec-2035 | 1.9 |
| Ontario Province 4.60% 02-Dec-2055 | 1.8 |
| Canada Government 3.25% 01-Dec-2034 | 1.7 |
| Cash and Cash Equivalents | 1.7 |
| TransCanada Trust 4.65% 18-May-2027 | 1.7 |
| United States Treasury 4.75% 15-Aug-2055 | 1.6 |
| Total allocation in top holdings | 28.5 |
| Portfolio characteristics | Value |
|---|---|
| Standard deviation | 5.1% |
| Dividend yield | 3.6% |
| Yield to maturity | 4.0% |
| Duration (years) | 7.1% |
| Coupon | 4.3% |
| Average credit rating | A+ |
| Average market cap (million) | $32,859.2 |
Understanding returns
Annual compound returns (%)
| 1 MO | 3 MO | YTD | 1 YR |
|---|---|---|---|
| -1.1 | 2.0 | 3.5 | 3.5 |
| 3 YR | 5 YR | 10 YR | INCEPTION |
|---|---|---|---|
| 5.4 | 0.4 | 2.4 | 2.9 |
Calendar year returns (%)
| 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|
| 3.5 | 5.8 | 6.9 | -11.0 |
| 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|
| -11.0 | -2.1 | 9.2 | 7.2 |
Range of returns over five years (November 01, 2011 - December 31, 2025)
| Best return | Best period end date | Worst return | Worst period end date |
|---|---|---|---|
| 4.5% | Nov 2020 | 0.0% | Jul 2025 |
| Average return | % of periods with positive returns | Number of positive periods | Number of negative periods |
|---|---|---|---|
| 2.4% | 100 | 111 | 0 |
Q3 2025 Fund Commentary
Market commentary
Canada’s economy faced challenges in the third quarter as trade tensions with the U.S. continued. This weighed on trade activity and the manufacturing sector. Household spending demonstrated resiliency despite a slowing labour market and economic uncertainty.
The Bank of Canada (BoC) lowered its key interest rate to 2.50%, citing a weaker labour market and easing inflation. The BoC emphasized a cautious approach to balancing growth and price stability. Canada’s unemployment rate was 7.1%, the highest since 2021, with youth unemployment rising sharply.
The Canadian fixed income market posted gains. Yields on 10-year Government of Canada bonds finished at 3.18%, slightly lower than 3.27% at the beginning of the quarter. Government bond prices increased, while investment-grade corporate bonds outperformed. High-yield bonds rose, driven by improving risk sentiment and appetite for income.
Performance
Overweight exposure to Kleopatra Finco SARL (9.0%, 2029/09/01) detracted from the Fund’s performance. The bond declined because of lower end-market demand, the withdrawal of expected sponsor equity support and a liability management exercise that weakened market confidence.
At the sector level, government bond exposure contributed to the Fund’s performance. Security selection within industrials detracted from performance.
Portfolio activity
The sub-advisor added Warnermedia Holdings Inc. (5.05%, 2042/03/15) for its attractiveness compared to peers, content portfolio and cash flow generation. Warnermedia is also expected to be added to the high-yield index, which would likely improve its liquidity and broaden investor participation. Bruce Power L.P. (4.27%, 2034/12/21) was increased for its long-term contracts, which support cash flow and credit fundamentals. The sub-advisor has a positive view of the company for its defensive profile and high quality.
Government of New Zealand (3.5%, 2033/04/14) was sold after the Reserve Bank of New Zealand lowered its interest rate in August. Carnival Corp. (5.75%, 2027/03/01) was reduced for portfolio management considerations. The proceeds were used to participate in new issues.
Summary
For the period 10/05/2011 through 12/31/2025 with $10,000 CAD investment
Total returns performance
49.20%
Last price
$9.18 CAD
as of market close 12/31/2025
Value of $10,000 investment
$14,919.87 CAD
