Fund Overview
This fund is designed for investors who…
- Value a performance record of steady income as well as capital growth.
- Have a low to medium risk tolerance and mid-to long-term investment horizon.
Investment Objectives
- Achieve a return comprised of a steady income and medium- and long-term capital growth.
- Invest primarily in debt instruments of Canadian and foreign issuers, and in equity securities of Canadian and foreign issuers.
Fund Facts are published once a year. Read them now.
Summary
Volatility
Low / Average Category: Canadian income, balanced
Start Date: March 31, 1978
RRSP Admissibility: yes, 100% eligible
Benchmark:
- 45% DEX Short Term/Mid-term
- 35% S&P/TSX Composite Index
- 15% MSCI World (in CA$)
- 5% 91-day Treasury Bonds
Assets*: $387,143,237
Number of Securities: 9
Target Asset Mix:
- Bonds and Fixed Income: 42.2%
- Canadian Equities: 38.3%
- International Equities: 5.9%
- American Equities: 12.3%
- Cash and Equivalents: 1.3%
*As at April 30, 2024
Portfolio Management
Managers
- Professionals’ Financial – Mutual Funds Inc.
The Funds’ Investment Policies are developed by the Fund Manager’s Investment Committee, which meets regularly to make any necessary changes. The Committee includes both internal and external investment experts, as well as representatives of professional association shareholders.
Main Securities as at March 31, 2024
| FDP Canadian Equity Portfolio | 40.2% |
| FDP Canadian Bond Portfolio | 34.9% |
| FDP Global Equity Portfolio | 13.4% |
| FDP Global Fixed Income Portfolio | 6.3% |
| SPDR S&P 500 ETF Trust | 2.8% |
| FDP Emerging Markets Equity Portfolio | 1.3% |
| FDP US Equity Portfolio | 1.1% |
| Cash and Cash Equivalents | 0.1% |
| Net asset value as at March 31, 2024 | 400 M $ |
Returns
Returns *
* Returns for the first and last year are not annualized
* Non annualized return
$1,000 Invested Amount since inception
Note that the results shown are for information purposes only. Commissions, trailing commissions, management fees and expenses all may be associated with investments ins FDP Portfolio’s. Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total returns, including changes in portfolio value and reinvestment of all distributions, but do not take into account sales, redemption, distribution or optional charges or income taxes payable by an investor that would have reduced returns. References to indices are for information purposes only. Comparisons with indices may vary according to the portfolio size, investment timing, and mandate objective. The funds’ securities are not insured by the Canada Deposit Insurance Corporation. Mutual funds are not guaranteed, their value changes frequently, and past performance may not be repeated.
Managers' Comments
The Managers’ Comments are taken from the Annual Management Report of Portfolio Performance (Operating Results), as at December 31, 2023.
The FDP Balanced Portfolio, Series A posted a net return of 8.7% for 2023, versus -9.8% for 2022.
The bond market, as measured by the FTSE Canada Universe Bond Index, posted a 6.7% return for the year. The index’s positive return is mainly attributable to key interest rates having apparently reached their peak (the Bank of Canada hiked its key interest rate by 75 basis points [bps] in the first half of the year and kept it unchanged thereafter), the prospect of rate cuts in the near future, as well as credit spreads narrowing and bond yields to maturity rising.
Rate hikes weighed heavily on Canadian markets, but the unexpectedly resilient Canadian economy drove investors’ optimism. The Canadian stock market, as measured by the S&P/TSX Composite Index, posted an 11.8% return for 2023, led by technology stocks such as Shopify and Constellation Software.
In the United States, the U.S. Federal Reserve (Fed) continued to hike rates throughout the year, lifting its key interest rate from a 4.25 – 4.50% to a 5.25 – 5.50% range. Late in the year, the Fed signalled it might cut rates in the near future, injecting a healthy dose optimism in the market. The U.S. stock market, as measured by the S&P 500 Index, posted a net return of 22.9% in Canadian dollars in 2023. As was the case in the MSCI World Index, growth-style stocks (especially those in the Magnificent Seven, the seven largest U.S. technology companies) contributed the most to performance during the year.
The global stock market, as measured by the MSCI World Index, posted a 20.5% return in Canadian dollars for 2023, which offset most of the losses suffered in 2022. All eurozone markets (MSCI Europe) yielded positive returns of 17.4%, while Asian markets (MSCI AC Asia Pacific) gained 8.1% and emerging markets (iShares MSCI Emerging Markets ETF) 5.6% in Canadian dollars.
The Canadian dollar appreciated about 2.1% against the U.S. dollar, which impeded returns for Canadian investors.
On a relative basis and gross of management fees, the FDP Balanced Growth Portfolio underperformed its blended index by 32 bps. The portfolio’s negative relative performance is essentially due to its Canadian and global equity holdings.
In terms of positioning, the Portfolio remained overweight to equities relative to its peers and maintained an overweight to Canadian securities.
