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 February 28, 2025)
Asset allocation (%)
|
Name |
Percent |
|
Foreign Bonds |
70.9 |
|
Cash and Equivalents |
14.7 |
|
Domestic Bonds |
0.7 |
|
Canadian Equity |
0.4 |
|
Other |
13.3 |
Geographic allocation (%)
|
Name |
Percent |
|
United States |
70.1 |
|
Canada |
13.0 |
|
Mexico |
7.4 |
|
Argentina |
2.7 |
|
United Kingdom |
2.1 |
|
Brazil |
1.9 |
|
Panama |
1.6 |
|
Colombia |
0.9 |
|
Peru |
0.3 |
Sector allocation (%)
|
Name |
Percent |
|
Fixed Income |
85.0 |
|
Cash and Cash Equivalent |
14.7 |
|
Financial Services |
0.4 |
|
Other |
-0.1 |
Growth of $10,000
(since inception)
Data not available based on date of inception
Fund details
(as of February 28, 2025)
| Top holdings |
% |
| Cash and Cash Equivalents |
12.8 |
| Mexico Government 7.50% 26-May-2033 |
2.8 |
| Petroleos Mexicanos 5.35% 12-Feb-2028 |
2.5 |
| United Kingdom Government 3.75% 22-Oct-2053 |
2.1 |
| Freddie Mac Stacr Remic Trust 7.70% 25-Nov-2043 |
2.1 |
| Brazil Government 10.00% 01-Jan-2027 |
1.9 |
| NFE Financing LLC 12.00% 15-Nov-2029 |
1.6 |
| EchoStar Corp 10.75% 30-Nov-2029 |
1.4 |
| Freddie Mac Stacr Remic Trust 11.10% 25-Jun-2042 |
1.2 |
| Mexico Government 8.00% 31-Jul-2053 |
1.1 |
| Total allocation in top holdings |
29.5 |
| Portfolio characteristics |
|
| Standard deviation |
6.3% |
| Yield to maturity |
7.3% |
| Duration (years) |
4.1 |
| Coupon |
7.2% |
| 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 - April 30, 2025)
| Best return |
Best period end date |
Worst return |
Worst period end date |
|
2.4% |
Dec. 2023 |
0.9% |
Apri 2025 |
| Average return |
% of periods with positive returns |
Number of positive periods |
Number of negative periods |
|
1.5% |
100.0% |
17 |
0 |
Q1 2025 Fund Commentary
Market commentary
The global fixed income market rose during the first quarter of 2025. U.S. bond yields fell as investors favoured higher-quality securities because of concerns about U.S. trade tariffs and the potential for slower economic growth.
The U.S. Federal Reserve Board kept interest rates at 4.25% – 4.50%. The Bank of England (BoE) lowered interest rates by 0.25% to 4.50% in February and then held rates steady in March. The European Central Bank cut interest rates by 0.25% in January and March.
U.S. investment-grade and high-yield bond markets rose. Within the high-yield sector, higher-quality bonds outperformed. U.S. mortgage-backed securities (MBS) generated positive returns. The U.S. dollar fell 3.9%, its weakest quarterly return since the third quarter of 2024.
Performance
The Fund’s relative exposure to U.S. agency MBS was positive for performance. The sector benefited from increased demand because of higher volatility in corporate bond markets. Holdings in high-yield and investment-grade corporate bonds were also positive for performance. The Fund’s high-yield holdings were supported by their shorter durations (lower sensitivity to interest rates), while investment-grade holdings benefited from declining U.S. Treasury yields.
At the regional level, underweight exposure to Japanese sovereign bonds was positive for performance. These bonds underperformed as the Bank of Japan raised interest rates, causing the yen to rise. Emerging market local currency sovereign bond holdings, particularly in Mexico and Brazil, had a positive impact on the Fund’s performance. Emerging market assets benefited from a weakening U.S. dollar.
Relative exposure to U.K. gilts was negative for performance. Although the BoE cut interest rates in February, U.K. bond yields rose slightly because of concerns about higher government borrowing requirements. Underweight exposure to developed markets was negative for performance because of escalating trade tensions, which led to good performance for developed market bonds.
Portfolio activity
The sub-advisor added euro exposure after Germany announced a potential increase in fiscal spending. Exposure to Egyptian sovereign duration was increased based on the country’s improved outlook and declining inflation.
Exposure to the Australian dollar was eliminated because of a weakening near-term outlook. U.S. Treasuries and U.K. gilts were trimmed to slightly lower the Fund’s duration.
Outlook
The sub-advisor expects the U.S. administration’s tariff policy and federal spending cuts to lower U.S. growth and increase near-term inflation. A recession would likely be needed for bond yields to decline significantly from current levels, in the sub-advisor’s view. Globally, the sub-advisor believes there could be a difference in growth between the U.S. and other developed economies. As the U.S. tightens its fiscal policy, other countries are beginning to shift to expansionary fiscal policy.
Given this backdrop, the sub-advisor believes the best opportunities are near the shorter-term end of the yield curve. The sub-advisor believes further market volatility may create opportunities to invest in high-quality bond issuers at more attractive valuations.