December 31, 2025
A Canadian corporate fixed-income fund seeking to provide a high level of interest income.
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 Canadian fixed-income securities issued by corporations, with some exposure to foreign fixed-income securities.
- 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 | 88.5 |
| Cash and Equivalents | 9.4 |
| Foreign Bonds | 1.8 |
| Canadian Equity | 0.2 |
| Other | 0.1 |
| Name | Percent |
|---|---|
| Canada | 98.1 |
| United States | 1.7 |
| Australia | 0.2 |
| France | 0.1 |
| Other | -0.1 |
| Name | Percent |
|---|---|
| Fixed Income | 90.3 |
| Cash and Cash Equivalent | 9.4 |
| Financial Services | 0.1 |
| Telecommunications | 0.1 |
| Utilities | 0.1 |
Growth of $10,000 (since inception)
For the period 08/07/2018 through 12/31/2025 tr.with $10,000 CAD investment, The value of the investment would be $12,393
Fund details (as of October 31, 2025)
| Top holdings | Percent (%) |
|---|---|
| Bank of Nova Scotia 5.50% 29-Dec-2025 | 3.2 |
| TransCanada Trust 4.20% 04-Dec-2030 | 2.0 |
| Rogers Communications Inc 5.00% 17-Dec-2081 | 1.7 |
| TransCanada Trust 4.65% 18-May-2027 | 1.6 |
| Intact Financial Corp 4.65% 16-May-2029 | 1.5 |
| Algonquin Power & Utils Corp 5.25% 18-Jan-2082 | 1.5 |
| Cash and Cash Equivalents | 1.5 |
| Rogers Communications Inc 5.90% 21-Sep-2033 | 1.3 |
| Superior Plus LP 4.25% 18-May-2028 | 1.3 |
| Enbridge Inc 5.38% 27-Sep-2027 | 1.3 |
| Total allocation in top holdings | 16.9 |
| Portfolio characteristics | Value |
|---|---|
| Standard deviation | 4.4% |
| Dividend yield | 5.4% |
| Yield to maturity | 4.0% |
| Duration (years) | 5.8% |
| Coupon | 4.4% |
| Average credit rating | A- |
| Average market cap (million) | $48,610.3 |
Understanding returns
Annual compound returns (%)
| 1 MO | 3 MO | YTD | 1 YR |
|---|---|---|---|
| -0.6 | 2.1 | 4.2 | 4.2 |
| 3 YR | 5 YR | 10 YR | INCEPTION |
|---|---|---|---|
| 6.5 | 1.3 | - | 2.9 |
Calendar year returns (%)
| 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|
| 4.2 | 7.5 | 7.8 | -9.7 |
| 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|
| -9.7 | -2.3 | 8.0 | 7.4 |
Range of returns over five years (September 01, 2018 - December 31, 2025)
| Best return | Best period end date | Worst return | Worst period end date |
|---|---|---|---|
| 2.9% | Mar 2025 | 0.6% | Sep 2023 |
| Average return | % of periods with positive returns | Number of positive periods | Number of negative periods |
|---|---|---|---|
| 1.5% | 100 | 29 | 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.
Credit spreads (the difference in yield between corporate and government bonds with the same maturity) continued to narrow, which supported Canadian corporate fixed income. Investment-grade corporate bonds rose, driven by steady demand and strong fundamentals. High-yield bonds rose, driven by improving risk sentiment and appetite for income.
Performance
The Fund’s overweight exposure to TransCanada Trust (4.2%, 2081/03/04) contributed to performance as it benefited from investor demand for high-quality credit. Overweight exposure to Hydro One Inc. (3.1%, 2051/09/15) detracted from performance because it underperformed sector peers.
At the sector level, security selection in energy sector bonds contributed to the Fund’s performance. Exposure to infrastructure bonds detracted from performance.
Portfolio activity
The sub-advisor added Pembina Pipeline Corp. (4.8%, 2081/01/25) to add to the Fund’s overweight exposure to the utility and pipeline midstream segment. The sector is supported by the regulatory environment. 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.
Allied Properties REIT (1.726%, 2026/02/12) was sold to take profits. Cannabist Company Holdings Inc. (9.25%, 2028/12/31) was reduced to rebalance the portfolio and reduce risk.
Summary
For the period 08/07/2018 through 12/31/2025 with $10,000 CAD investment
Total returns performance
23.93%
Last price
$9.85 CAD
as of market close 12/31/2025
Value of $10,000 investment
$12,393.48 CAD
