The Fund seeks to provide a steady flow of income by investing primarily in Canadian government and corporate fixed-income instruments and asset-backed securities with maturities of more than one year.
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Risk Rating
How is the fund invested?
Geographic allocation (%)
Growth of $10,000
(since inception)
Data not available based on date of inception
Fund details
| Top holdings |
% |
| Total allocation in top holdings |
- |
| Portfolio characteristics |
|
| Standard deviation |
- |
| Dividend yield |
- |
| Yield to maturity |
- |
| Duration (years) |
- |
| Coupon |
- |
| Average credit rating |
Not rated |
| Average market cap (million) |
- |
Understanding returns
Annual compound returns (%)
| 1 MO |
3 MO |
YTD |
1 YR |
|
Data not available based on date of inception
|
| 3 YR |
5 YR |
10 YR |
INCEPTION |
|
Data not available based on date of inception
|
Calendar year returns (%)
|
2024 |
2023 |
2022 |
2021 |
|
Data not available based on date of inception
|
|
2020 |
2019 |
2018 |
2017 |
|
Data not available based on date of inception
|
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
|
Q3 2025 Fund Commentary
Market commentary
Canada’s economy faced challenges in the third quarter as trade tensions with the U.S. continued. This weighed on trade activity and the manufacturing sector. Household spending demonstrated resiliency despite a slowing labour market and economic uncertainty.
The Bank of Canada (BoC) lowered its key interest rate to 2.50%, citing a weaker labour market and easing inflation. The BoC emphasized a cautious approach to balancing growth and price stability. Canada’s unemployment rate was 7.1%, the highest since 2021, with youth unemployment rising sharply.
The Canadian fixed income market posted gains. Yields on 10-year Government of Canada bonds finished at 3.18%, slightly lower than 3.27% at the beginning of the quarter. Government bond prices increased, while investment-grade corporate bonds outperformed. High-yield bonds rose, driven by improving risk sentiment and appetite for income.
Performance
Overweight exposure to Kleopatra Finco SARL (9.0%, 2029/09/01) detracted from the Fund’s performance. The bond declined because of lower end-market demand, the withdrawal of expected sponsor equity support and a liability management exercise that weakened market confidence.
At the sector level, government bond exposure contributed to the Fund’s performance. Security selection within industrials detracted from performance.
Portfolio activity
The sub-advisor added Warnermedia Holdings Inc. (5.05%, 2042/03/15) for its attractiveness compared to peers, content portfolio and cash flow generation. Warnermedia is also expected to be added to the high-yield index, which would likely improve its liquidity and broaden investor participation. Bruce Power L.P. (4.27%, 2034/12/21) was increased for its long-term contracts, which support cash flow and credit fundamentals. The sub-advisor has a positive view of the company for its defensive profile and high quality.
Government of New Zealand (3.5%, 2033/04/14) was sold after the Reserve Bank of New Zealand lowered its interest rate in August. Carnival Corp. (5.75%, 2027/03/01) was reduced for portfolio management considerations. The proceeds were used to participate in new issues.