Fund Overview
This fund is designed for investors who …
- Seek capital preservation and steady income generation, as well as attractive long-term growth potential.
- Have a low to medium risk tolerance.
- Have a long-term investment horizon.
Investment Objectives
- Achieve a long-term global return through an appropriate stock selection and by taking advantage of interest rate and currency rate shifts on world markets.
- Invest primarily in debt instruments of foreign issuers that may be denominated in other currencies than the Canadian dollar and have different maturity dates. The issuers of securities may be established worldwide, including Canada and emerging countries.
Fund Facts are published once a year. Read them now.
Summary
Volatility:
Low / Average Category: Fixed Income
Start Date: January 25, 2013
RRSP Admissibility: Yes, 100% eligible
Benchmark:
- 70%: Merrill Lynch Global High Yield BB/B Index 2% Issuer Constrained (hedged to the Canadian dollar)
- 15%: Barclays Capital Global Aggregate Credit Index (hedged to the Canadian dollar)
- 15%: FTSE TMX Universe
Assets*: $198,702,146
Number of Securities: 669
Target Asset Mix:
- Short term: 0%
- Global and Canadian government and corporate bonds: 100%
*As at April 30, 2024
Portfolio Management
Managers
- Amundi Canada inc., Manulife Investment Management Limited (US) et Manulife Investment Management Limited (Hong Kong), 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
| iShares 7-10 Year Treasury Bond ETF | 7.8% |
| iShares iBoxx $ Investment Grade Corporate Bond ETF | 6.2% |
| iShares 0-5 Year Investment Grade Corporate Bond ETF | 4.5% |
| Cash and Cash Equivalents | 3.9% |
| United States Treasury Note, 2.75%, Aug. 15, 2032 | 1.0% |
| iShares 3-7 Year Treasury Bond ETF | 0.9% |
| United States Treasury Note, 3.50%, Feb. 15, 2033 | 0.8% |
| United States Treasury Note, 1.88%, Feb. 15, 2032 | 0.7% |
| ABRA Global Finance, 11.50%, Mar. 02, 2028 | 0.6% |
| Grupo Aeromexico, SAB de CV, 8.50%, Mar. 17, 2027 | 0.5% |
| Freddie Mac Pool, 5.50%, Sep. 01, 2053 | 0.5% |
| United States Treasury Note, 2.88%, May 15, 2032 | 0.5% |
| Ecopetrol SA, 8.88%, Jan. 13, 2033 | 0.4% |
| Indiabulls Housing Finance Limited, 9.70%, Jul. 03, 2027 | 0.4% |
| AEGEA Finance Sarl, 6.75%, May 20, 2029 | 0.4% |
| Delta Air Lines, Inc. / SkyMiles IP Ltd., 4.75%, Oct. 20, 2028 | 0.4% |
| CCO Holdings, LLC / CCO Holdings Capital Corp., 4.75%, Feb. 01, 2032 | 0.4% |
| Resorts World Las Vegas LLC / RWLV Capital Inc., 8.45%, Jul. 27, 2030 | 0.4% |
| Transportes Aereos Portugueses, SA, 5.63%, Dec. 02, 2024 | 0.4% |
| McGraw-Hill Education, Inc., 8.00%, Aug. 01, 2029 | 0.4% |
| Cidron Aida Finco SARL, 5.00%, Apr. 01, 2028 | 0.4% |
| Energean PLC, 6.50%, Apr. 30, 2027 | 0.3% |
| Vistra Operations Company LLC, 7.75%, Oct. 15, 2031 | 0.3% |
| United Mexican States, 5.00%, Mar. 06, 2025 | 0.3% |
| Avianca Midco 2 PLC, 9.00%, Dec. 01, 2028 | 0.3% |
| Net asset value as at March 31, 2024 | 200 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 Global Fixed Income Portfolio, Series A posted a net return of 7.1% for 2023, versus -9.9% for 2022. The FDP Global Fixed Income Portfolio, Series I posted a net return of 8.5% for 2023.
The global high-yield bond market, as measured by the ICE BofAML Global High Yield Index (hedged in Canadian dollars) posted a 12.0% return. The portfolio’s benchmark index gained 9.7% during the same period. Global fixed income securities benefited from a somewhat greater likelihood that inflation will be curbed while the economy will achieve a soft landing. Credit spreads for both high-yield bonds and bank loans narrowed in 2023, causing bonds to increase in value.
As inflation is still above the target range, central banks continued to hike their key interest rates and ceased purchasing bonds on the secondary market but hit pause in the second half of the year. Several central banks, including the U.S. Federal Reserve, signalled that they may lower short-term interest rates if market conditions allowed, which drove investor optimism.
