A fund that aims to find balance between long-term growth and consistent income.
Is this fund right for you?
- You want your money to grow over a longer term.
- You want to invest in mid- to large- cap Canadian equities and fixed income securities.
- You're comfortable with a low to medium level of risk.
Risk Rating
How is the fund invested?
(as of November 30, 2024)
Asset allocation (%)
|
Name |
Percent |
|
Canadian Equity |
40.1 |
|
Domestic Bonds |
28.1 |
|
US Equity |
25.4 |
|
Cash and Equivalents |
3.9 |
|
International Equity |
1.7 |
|
Foreign Bonds |
0.7 |
|
Other |
0.1 |
Geographic allocation (%)
|
Name |
Percent |
|
Canada |
71.8 |
|
United States |
26.2 |
|
Ireland |
1.1 |
|
Switzerland |
0.7 |
|
France |
0.3 |
|
Other |
-0.1 |
Sector allocation (%)
|
Name |
Percent |
|
Fixed Income |
28.9 |
|
Financial Services |
17.8 |
|
Consumer Goods |
8.6 |
|
Consumer Services |
8.0 |
|
Technology |
7.1 |
|
Industrial Services |
6.6 |
|
Healthcare |
4.3 |
|
Telecommunications |
4.2 |
|
Cash and Cash Equivalent |
3.9 |
|
Other |
10.6 |
Growth of $10,000
(since inception)
Data not available based on date of inception
Fund details
(as of November 30, 2024)
Top holdings |
% |
Royal Bank of Canada |
3.4 |
Toronto-Dominion Bank |
2.6 |
Cash and Cash Equivalents |
2.6 |
Ontario Province 4.15% 02-Jun-2034 |
2.1 |
RB Global Inc |
2.0 |
Canada Government 3.00% 01-Jun-2034 |
1.9 |
Bank of Montreal |
1.9 |
Quebec Province 4.45% 01-Sep-2034 |
1.9 |
Metro Inc |
1.5 |
Canadian National Railway Co |
1.5 |
Total allocation in top holdings |
21.4 |
Portfolio characteristics |
|
Standard deviation |
10.3% |
Dividend yield |
2.4% |
Yield to maturity |
3.9% |
Duration (years) |
8.2 |
Coupon |
4.5% |
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
Best return |
Best period end date |
Worst return |
Worst period end date |
Data not available based on date of inception
|
Average return |
% of periods with positive returns |
Number of positive periods |
Number of negative periods |
Data not available based on date of inception
|
Q4 2024 Fund Commentary
Market commentary
Market volatility during the quarter was fuelled by the U.S. presidential election and other elections, tension over tariffs, lower interest rates and geopolitical conflicts. Despite the volatility, the Canadian and U.S. equity markets rose. The Canadian bond market declined.?
Performance
The Fund’s fixed income component had a positive impact on performance. Canadian and U.S. equities had a negative impact.
In fixed income, the Fund’s longer duration (higher sensitivity to interest-rate changes) was positive for performance as bond yields fell. Overweight exposure to corporate bonds also had a positive impact. The Fund’s yield curve positioning had a negative impact on performance because of its overweight exposure to 10-year bonds, which underperformed.
The Fund’s relative exposure to CAE Inc., RB Global Inc. and Bank of Montreal had the most positive impact on performance. CAE Inc.’s margins improved in its civil and defence segments. RB Global Inc. benefited from cost discipline and solid execution. Bank of Montreal outperformed, with its large loan-loss provisions and management commentary suggesting the worst was likely over for its loan portfolio.
The Fund’s relative exposure to The Toronto-Dominion Bank, Rogers Communications Inc., Polaris Inc. and Biogen Inc. had a negative impact on performance. The Toronto-Dominion Bank pled guilty to money laundering charges in the U.S. and was fined roughly US$3 billion. An unexpected asset cap on its U.S. retail operations contributed to the stock’s decline.
Rogers Communications Inc. agreed to acquire BCE Inc.’s stake in Maple Leaf Sports & Entertainment and announced a structured equity financing deal with Blackstone Inc. Both deals were negatively received by the market. Polaris Inc. faced a challenging environment for power sports equipment, which is expected to continue in 2025. Biogen Inc.’s slow launch of a new drug for Alzheimer’s disease continued into the fourth quarter.
In Canadian equities, stock selection in the industrials sector and underweight exposure to the materials sector had a positive impact on performance. Stock selection in and underweight exposure to information technology, and stock selection in financials, were negative.
In U.S. equities, stock selection in and overweight exposure to the financials sector had a positive impact on performance. Stock selection in industrials also had a positive impact. Stock selection in the consumer discretionary, communication services and information technology sectors was negative.
The sub-advisor added ATS Corp., Boyd Group Services Inc., Medtronic PLC and Chubb Ltd. to the Fund. Bank of Montreal, Canadian Pacific Kansas City Ltd., The Toronto-Dominion Bank, Merck & Co. Inc., Omnicom Group Inc., Qualcomm Inc. and Amgen Inc. were increased.
The sub-advisor decreased holdings including Brookfield Asset Management Ltd., Sun Life Financial Inc., Royal Bank of Canada and Saputo Inc. The sub-advisor also decreased BlackRock Inc., SEI Investments Co., The Carlyle Group Inc., Kellanova, Flowserve Corp. and Tempur Sealy International Inc.
Outlook
Despite several rate reductions, the Bank of Canada’s (BoC) policy rate remains much higher than during the early 2020s. The sub-advisor expects higher mortgage payments to lead to lower discretionary spending, which could have a negative impact on economic activity.
The new U.S. administration intends to pursue protectionist trade policies like tariffs. The U.S. is Canada’s largest trading partner, and tariffs could significantly affect sectors that rely on exporting to the U.S.
Given expectations for revenue acceleration, margin expansion and earnings growth, the sub-advisor anticipates continued equity market volatility. Should earnings announcements fall short of high expectations, the market could decline. The sub-advisor believes this risk is higher for U.S. equities.
In fixed income, bond yields remain significantly higher than the lows of the early part of the decade. The sub-advisor believes the U.S. Federal Reserve Board and BoC are likely to continue lowering interest rates, but at a less aggressive pace. As credit spreads (the difference in yield between government and corporate bonds) are already narrow, the sub-advisor doesn’t expect them to narrow much further. Therefore, the sub-advisor expects 2025 to provide opportunities for corporate bonds.