The fund seeks long-term capital growth and income by investing primarily in equities issued by companies around the world and Canadian fixed income securities directly or through other investment funds.
Is this fund right for you?
- Are looking for a balanced fund to hold as part of their portfolio.
- Want a long-term investment.
- Can handle the volatility of stock and bond markets.
Risk Rating
How is the fund invested?
(as of February 28, 2025)
Asset allocation (%)
|
Name |
Percent |
|
Domestic Bonds |
35.1 |
|
US Equity |
30.2 |
|
International Equity |
23.1 |
|
Foreign Bonds |
7.1 |
|
Cash and Equivalents |
3.4 |
|
Canadian Equity |
1.2 |
|
Other |
-0.1 |
Geographic allocation (%)
|
Name |
Percent |
|
Canada |
39.0 |
|
United States |
36.1 |
|
China |
3.2 |
|
France |
3.1 |
|
United Kingdom |
3.1 |
|
Japan |
2.8 |
|
Ireland |
2.3 |
|
New Zealand |
1.2 |
|
Brazil |
1.0 |
|
Other |
8.2 |
Sector allocation (%)
|
Name |
Percent |
|
Fixed Income |
42.2 |
|
Financial Services |
10.8 |
|
Technology |
10.7 |
|
Healthcare |
6.2 |
|
Consumer Goods |
5.8 |
|
Industrial Services |
5.0 |
|
Consumer Services |
4.8 |
|
Cash and Cash Equivalent |
3.4 |
|
Basic Materials |
2.8 |
|
Other |
8.3 |
Growth of $10,000
(since inception)
Data not available based on date of inception
Fund details
(as of February 28, 2025)
| Top holdings |
% |
| BNP Paribas SA |
1.6 |
| Canada Government 2.75% 01-Dec-2055 |
1.6 |
| Baidu Inc - ADR |
1.5 |
| Quebec Province 4.40% 01-Dec-2055 |
1.4 |
| Canada Government 3.25% 01-Jun-2035 |
1.4 |
| Microsoft Corp |
1.4 |
| Alibaba Group Holding Ltd - ADR |
1.3 |
| Cash and Cash Equivalents |
1.3 |
| Canada Government 3.00% 01-Jun-2034 |
1.3 |
| Alphabet Inc Cl A |
1.2 |
| Total allocation in top holdings |
14.0 |
| Portfolio characteristics |
|
| Standard deviation |
9.1% |
| Dividend yield |
2.6% |
| Yield to maturity |
4.2% |
| Duration (years) |
7.3 |
| Coupon |
4.2% |
| Average credit rating |
A |
Understanding returns
Annual compound returns (%)
| 1 MO |
3 MO |
YTD |
1 YR |
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| 3 YR |
5 YR |
10 YR |
INCEPTION |
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Calendar year returns (%)
|
2024 |
2023 |
2022 |
2021 |
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|
2020 |
2019 |
2018 |
2017 |
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Range of returns over five years
(August 1, 2017 - April 30, 2025)
| Best return |
Best period end date |
Worst return |
Worst period end date |
|
9.5% |
March 2025 |
3.6% |
Sept. 2022 |
| Average return |
% of periods with positive returns |
Number of positive periods |
Number of negative periods |
|
5.4% |
100.0% |
34 |
0 |
Q1 2025 Fund Commentary
Market commentary
U.S. equity markets started the year up in anticipation of the new U.S. administration’s pro-growth agenda, including tax cuts and relaxed regulations. By February, growth stocks began to decline while value stocks rose. Uncertainty increased, with policy volatility regarding trade and tariffs leading to weaker business and consumer sentiment. Inflation stayed elevated and growth stabilized, albeit at a relatively subdued level.
Global equities outperformed U.S. equities, with Europe benefiting from increased fiscal stimulus as Germany initiated plans to increase military and infrastructure spending.
The Canadian economy faced significant challenges during the quarter, driven by trade disruptions and tariff uncertainty. Despite this, Canada’s gross domestic product growth was expected to be 1.4% for 2025, according to the International Monetary Fund. However, productivity growth lagged, highlighting ongoing challenges to business investment in the current environment.
The Canadian fixed income market posted a gain. The yield on 10-year Canadian government bonds fell from 3.22% to 2.97%, leading to higher bond prices, particularly for longer-term government bonds. Investment-grade and high-yield corporate bonds gained, benefiting from the overall decline in yields and a stable credit environment.
Performance
Within equities, the Fund’s relative exposure to BNP Paribas SA, Alibaba Group Holding Ltd. and CVS Health Corp. had the most positive impact on performance. Alibaba Group released a positive earnings report in February, while CVS benefited from lower medical cost trends and a positive reimbursement environment.
Relative exposure to Delta Air Lines Inc., ON Semiconductor Corp. and Magna International Inc. was negative for performance. Delta was affected by lower travel bookings. Shares of ON Semiconductor fell because of auto tariffs. Magna’s revenue outlook declined because of tariff expectations.
At the sector level, stock selection had the most positive impact on performance. Underweight exposure to information technology and overweight exposure to consumer staples also had a positive impact on performance. Exposure to industrials had a negative impact on performance.
At a regional level, overweight exposure to Europe and underweight exposure to the U.S. had a positive impact on performance. Overweight exposure to Canada had a negative impact.
The Fund’s duration (sensitivity to interest rates) was positive for performance as bond yields fell. The Fund’s yield curve positioning, with its higher allocation to longer-term bonds, was negative for performance. Short-term yields fell more than long-term yields over the quarter. Overweight exposure to corporate bonds was also negative for performance.
Portfolio activity
In terms of equities, M&T Bank Corp. was purchased as it is expected to benefit from lower regulation under the new U.S. administration. Dollar General Corp. was increased based on its minimal exposure to China should tariffs continue or increase. The sub-advisor sold The Allstate Corp. and trimmed The Kroger Co. in favour of other investments.
In fixed income, Province of Alberta (2.95%, 2052/06/01) was sold in favour of a higher-yielding holding from the same issuer. Sunac China Holdings Ltd. was reduced as the company faced financial challenges, which led to its second restructuring.
Outlook
Within equity markets, the sub-advisor has a positive outlook for Europe, in which the Fund had its largest exposure at quarter end. German fiscal stimulus gives investors a reason to expect potential growth in Europe, in the sub-advisor’s view. The Fund had underweight exposure to the U.S. because of high valuations and recession concerns.
Within fixed income, investor appetite for risk is low and market volatility remains high because of the continued threat of global tariffs and trade conflicts. Overall, fixed income markets are fragile, in the sub-advisor’s view, and fragile markets can lead to illiquidity. Still, the sub-advisor believes there are investment opportunities in corporate bonds.