The Fund seeks to provide long-term capital appreciation by investment primarily in Canadian equity securities.
Is this fund right for you?
- You want your money to grow over the longer term.
- You want to invest mainly in Canadian companies.
- You're comfortable with a medium level of risk.
Risk Rating
How is the fund invested?
(as of March 31, 2025)
Asset allocation (%)
|
Name |
Percent |
|
Canadian Equity |
98.0 |
|
Income Trust Units |
1.2 |
|
Cash and Equivalents |
0.8 |
Geographic allocation (%)
|
Name |
Percent |
|
Canada |
99.8 |
|
Bermuda |
0.2 |
Sector allocation (%)
|
Name |
Percent |
|
Financial Services |
31.7 |
|
Energy |
14.8 |
|
Basic Materials |
13.2 |
|
Technology |
10.6 |
|
Industrial Services |
10.2 |
|
Consumer Services |
6.8 |
|
Utilities |
4.1 |
|
Real Estate |
3.6 |
|
Industrial Goods |
1.6 |
|
Other |
3.4 |
Growth of $10,000
(since inception)
Data not available based on date of inception
Fund details
(as of March 31, 2025)
| Top holdings |
% |
| Royal Bank of Canada |
6.5 |
| Toronto-Dominion Bank |
4.8 |
| Shopify Inc Cl A |
4.4 |
| Agnico Eagle Mines Ltd |
4.2 |
| Constellation Software Inc |
3.6 |
| Enbridge Inc |
3.5 |
| TC Energy Corp |
3.2 |
| Waste Connections Inc |
2.8 |
| Canadian Pacific Kansas City Ltd |
2.7 |
| Manulife Financial Corp |
2.7 |
| Total allocation in top holdings |
38.4 |
| Portfolio characteristics |
|
| Standard deviation |
11.6% |
| Dividend yield |
2.5% |
| Average market cap (million) |
$77,207.3 |
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
(November 1, 2018 - May 31, 2025)
| Best return |
Best period end date |
Worst return |
Worst period end date |
|
16.3% |
March 2025 |
6.1% |
Oct. 2023 |
| Average return |
% of periods with positive returns |
Number of positive periods |
Number of negative periods |
|
9.5% |
100.0% |
20 |
0 |
Q1 2025 Fund Commentary
Market commentary
During the first quarter of 2025, equity markets fell due to tariff uncertainty and slowing economic activity in the U.S. and Canada. Escalating U.S.–Canada trade tensions raised recession concerns, leading to increased volatility in equity markets. Despite the reduction in mortgage rates, Canadian housing activity slowed, suggesting a weaker economic backdrop.
Canadian equity markets outperformed their U.S. counterparts, reflecting lower starting valuations, higher exposure to gold, and lower information technology exposure. Defensive sectors outperformed cyclical sectors, with gold equities the top-performing sector.
Investor sentiment responded to the launch of DeepSeek, a Chinese artificial intelligence (AI) model developed at a lower cost than U.S.-built models. This cost efficiency raised uncertainty regarding investments in information technology stocks, leading the sector to underperform.
Performance
The Fund’s relative exposure to Agnico Eagle Mines Ltd. had the most positive impact on performance. Tariff concerns and rising inflation expectations led to a rise in gold prices, which benefited the company’s performance.
Relative exposure to Capital Power Corp. and TransAlta Corp. was negative for performance. The companies were affected by the launch of DeepSeek, which showed efficiency improvements in building AI models. This launch led to short-term uncertainty about the future demand for data centres and electricity required for AI.
At the sector level, stock selection in information technology and health care had the most positive impact on performance. Underweight exposure to real estate also had a positive impact on performance. Security selection in utilities and energy had a negative impact on performance. Underweight exposure to materials also had a negative effect on performance.
Portfolio activity
The sub-advisor added Franco-Nevada Corp. based on rising gold prices in an environment of increased tariff concerns. Waste Connections Inc. was increased because the sub-advisor believes the company should be able to manage inflationary pressures to see double-digit earnings growth. Air Canada was sold because of its cyclical nature in an uncertain economic environment and rising fuel prices. The Bank of Nova Scotia was trimmed because of tariff uncertainty and rising risk of recession.
Outlook
The economic environment is uncertain because of U.S. tariffs, geopolitical tensions and rising recession risks. If high U.S. tariffs stay in place for an extended period, without negotiations bringing them lower, U.S. recession risk may rise. The sub-advisor is concerned about the potential for U.S. and Canadian inflation to rise.
U.S. equity market performance should depend on corporate earnings strength, fiscal and trade policy developments, and incoming economic data. Economic indicators are mixed, with weak consumer sentiment, capital expenditures, manufacturing orders and housing data. However, the labour market is positive and consumer spending has shown resilience. Should the U.S. economy stabilize and trade tensions ease, there is potential for positive equity performance.
The sub-advisor expects market volatility to remain elevated. The sub-advisor has reduced the Fund’s cyclical exposures, including banks and oil producers, and increased exposures to grocers, traditional utilities and gold.