Fund Overview
This fund is designed for investors who…
- Seek capital growth over the long-term in a diversified portfolio of American issuers.
- Want to participate in the indices of the American market.
- Have capital-growth objectives in the long term and whose risk tolerance is medium.
Investment Objectives
- Achieve long-term capital growth.
- Invest in securities included in one or more American stock market indices in proportion to their weight in such indices, with a minimum of 60% of the assets tracking the performance of S&P 500 market index, or favours investments whose returns track those of these indices.
Fund Facts are published once a year. Read them now.
Summary
Volatility:
Average Category: US Equity
Start Date: July 24, 2000
RRSP Admissibility: Yes, 100% eligible
Benchmark: S&P/500 Index not hedged to the Canadian dollar
Assets*: $53,412,702
Number of Securities: 8
Target Asset Mix:
- Short Term: 0%
- American Securities (S&P 500): 100%
- Other securities in other American indexes or sub-indexes: 0%
*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
| SPDR S&P 500 ETF Trust | 65.9% |
| iShares Core S&P 500 Index ETF (CAD- Hedged) | 15.9% |
| Invesco S&P 500 Equal Weight ETF | 5.7% |
| iShares MSCI USA Quality Factor ETF | 4.1% |
| Invesco QQQ Trust, Series 1 | 4.0% |
| iShares Core Dividend Growth ETF | 3.6% |
| Cash and Cash Equivalents | 1.6% |
| Net asset value as at March 31, 2024 | 55 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 US Equity Portfolio, Series A posted a net return of 20.2% for 2023, versus -15.0% for 2022.
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. 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 of the Magnificent Seven, the seven largest U.S. technology companies) contributed the most to performance during the year.
The Canadian dollar appreciated about 2.1% against the U.S. dollar, which impeded returns for Canadian investors.
The FDP US Equity Portfolio seeks to generate returns that are higher than the S&P 500 index while maintaining a large allocation to the index equities and relying on exchange-traded funds (ETF) to add value. The portfolio detracted value due to its investments in the S&P 500 Equal Weight, S&P 500 Minimum Volatility and S&P 500 Dividend Growers ETFs because U.S. large-cap growth stocks (especially the Magnificent Seven) dominated the United States’ foremost index in 2023.
