The Fund seeks to generate a high level of income over a full market cycle, regardless of market conditions, with a secondary objective of capital preservation by investing mainly in fixed income securities of issuers anywhere in the world.
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 fixed-income securities from anywhere in the world.
- You're comfortable with a low to medium level of risk.
Risk Rating
How is the fund invested?
(as of June 30, 2025)
Asset allocation (%)
|
Name |
Percent |
|
Foreign Bonds |
59.7 |
|
Cash and Equivalents |
23.7 |
|
Domestic Bonds |
0.7 |
|
Other |
15.9 |
Geographic allocation (%)
|
Name |
Percent |
|
United States |
55.2 |
|
Canada |
23.5 |
|
Mexico |
7.5 |
|
United Kingdom |
6.3 |
|
Argentina |
2.6 |
|
Brazil |
2.0 |
|
Panama |
1.0 |
|
Colombia |
0.6 |
|
Uruguay |
0.6 |
|
Other |
0.7 |
Sector allocation (%)
|
Name |
Percent |
|
Fixed Income |
76.3 |
|
Cash and Cash Equivalent |
23.7 |
Growth of $10,000
(since inception)
Data not available based on date of inception
Fund details
(as of June 30, 2025)
| Top holdings |
% |
| Cash and Cash Equivalents |
22.2 |
| United Kingdom Government 3.75% 22-Oct-2053 |
6.3 |
| Mexico Government 7.50% 26-May-2033 |
2.9 |
| Petroleos Mexicanos 5.35% 12-Feb-2028 |
2.4 |
| Brazil Government 10.00% 01-Jan-2027 |
2.0 |
| Freddie Mac Stacr Remic Trust 7.67% 25-Nov-2043 |
1.9 |
| Mexico Government 8.00% 31-Jul-2053 |
1.1 |
| Mexico Government 8.50% 01-Mar-2029 |
1.1 |
| Freddie Mac Stacr Remic Trust 11.07% 25-Jun-2042 |
1.1 |
| Freddie Mac Stacr Remic Trust 7.37% 25-Jan-2034 |
1.0 |
| Total allocation in top holdings |
42.0 |
| Portfolio characteristics |
|
| Standard deviation |
6.0% |
| Yield to maturity |
7.5% |
| Duration (years) |
4.9 |
| Coupon |
7.0% |
| Average credit rating |
BB+ |
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
(January 1, 2019 - August 31, 2025)
| Best return |
Best period end date |
Worst return |
Worst period end date |
|
2.4% |
Dec. 2023 |
0.2% |
July 2025 |
| Average return |
% of periods with positive returns |
Number of positive periods |
Number of negative periods |
|
1.3% |
100.0% |
21 |
0 |
Q2 2025 Fund Commentary
Market commentary
The global fixed income market rebounded during the second quarter of 2025. Developed market yields declined amid progress on inflation, interest rate cuts by some central banks, signs of economic fragility, and conflict between Israel and Iran. The U.S. Federal Reserve Board (Fed) met in May and June and kept interest rates on hold. The European Central Bank (ECB) lowered interest rates by 0.25% in both April and June, while the Bank of England cut interest rates in May.
U.S. investment-grade and high-yield bond spreads narrowed as potential trade deals and overall solid demand supported the market. U.S. mortgage-backed security (MBS) spreads widened but also generated a positive total return.
Performance
The Fund’s relative exposure to U.S. prime residential MBS and U.S. Treasury duration (sensitivity to interest rates) was positive for performance. MBS were supported by resilient household balance sheets and steady prepayment behaviour. U.S. Treasuries outperformed as weaker consumer sentiment and softer inflation prints led the Fed to keep interest rates steady.
A lack of exposure to Chinese and German sovereign bonds was negative for the Fund’s performance. Chinese bonds were affected by falling yields because of deflationary pressures and lower expectations of growth. German sovereign bonds were affected by improved risk sentiment and anticipation of ECB interest rate cuts, which weighed on yields.
At the sector level, exposure to emerging market sovereign bonds was positive for the Fund’s performance. These bonds were supported by strong domestic demand, attractive real yields and improving fiscal trajectories, while their currencies strengthened alongside broad U.S. dollar weakness. The Fund’s currency exposure was negative for performance as the U.S. dollar weakened. Exposure to U.S. high-yield corporate bonds was negative for performance.
Portfolio activity
Uruguay sovereign bonds were added to the Fund as the sub-advisor believes they offer attractive yields relative to risk. Exposure to the Brazilian real was increased as it remains undervalued and is poised to benefit from attractive interest rate differentials, in the sub-advisor’s view. Chinese sovereign bonds were sold as the country’s fiscal stimulus is likely to push yields higher. Canadian duration was reduced as growth is expected to slow as trade tensions with the U.S. escalate.
Outlook
The investment environment is likely to be stagflationary, where slowing growth meets inflation pressures, in the sub-advisor's view. The sub-advisor favours short-dated high-yield bonds for their income potential and low duration. In a moderate growth slowdown, issuers with solid balance sheets and manageable refinancing needs are well positioned to weather volatility.
MBS also offer attractive yields with defensive characteristics. Select emerging markets also remain appealing, in the sub-advisor’s view, particularly where real and nominal yields remain elevated.
The macroeconomic landscape remains uncertain and the sub-advisor expects global growth rates to converge. While the U.S. economy is gradually slowing, policy clarity remains uncertain amid conflicting signals from trade, labour and regulatory channels. Elevated tariffs continue to be a drag on growth and a potential source of inflation. The sub-advisor believes the Fed is likely to proceed cautiously with any monetary policy easing, balancing inflation pressures against the growing signs of economic deceleration.