Fund Overview
This fund is designed for investors who …
- Seek regular and diversified income for their asset allocation;
- Want to invest with a view to safety and capital preservation;
- Have a low tolerance to risk.
Investment Objectives
- Achieve steady income and ensure invested capital preservation.
- Invest primarily in rated or unrated municipal bonds, primarily denominated in Canadian dollars.
- May also invest in debt instruments issued primarily by Canadian public and quasi-public entities, as well as in debt instruments issued by the Canadian and provincial governments.
Fund Facts are published once a year. Read them now.
Summary
Volatility:
Low Category: Fixed income
Start Date: November 21, 2023
RRSP Admissibility: Yes, 100% eligible
Benchmark:
- 90% FTSE Canada Municipal Short Term Index
- 10% FTSE Canada T-Bill 91 days Index
Assets*: 153 710 389 $
Number of Securities: 74
Target Asset Mix
- Municipal bonds: 70%
- Debt instruments: 30%
*As at May 24, 2024
Portfolio Management
Manager
- 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 September 30, 2024
| Province of Ontario 4.0% 08-MAR-2029 | 4.4% |
| City of Rouyn-Noranda 0.95% 10-NOV-2025 | 3.7% |
| Societe de Transport de l’Outaouais 4.2% 12-APR-2028 | 3.5% |
| City of Levis 2.5% 28-FEB-2027 | 3.3% |
| City of Westmount (Quebec) 4.0% 16-MAY-2028 | 3.2% |
| CITY OF RIMOUSKI UNSECURED 12/27 4.5 | 3.0% |
| Canada Treasury Bonds 3.0% 01-APR-2026 | 3.0% |
| LEVIS MUNICIPALITY UNSECURED 11/28 5 | 3.0% |
| City of Saint-Hyacinthe 4.5% 03-MAR-2028 | 2.9% |
| Royal Bank of Canada 5.341% 23-JUN-2026 | 2.8% |
| Societe De Transport De La Ville De Laval 4.7% 10-NOV-2027 | 2.7% |
| City of Rimouski 0.9% 29-OCT-2025 | 2.7% |
| Toronto-Dominion Bank 5.491% 08-SEP-2028 | 2.6% |
| RESEAU DE TRANS METRO UNSECURED 01/28 4.25 | 2.3% |
| MONT TREMBLANT QUEBEC UNSECURED 08/28 5 | 2.2% |
| City of St-Lambert 2.0% 24-JAN-2027 | 2.1% |
| City of Cote Saint-Luc 1.95% 02-DEC-2026 | 2.1% |
| MUNI DE MORIN HEIGHTS CA UNSECURED 04/28 4.2 | 2.1% |
| ST AGATHE DES MONTS UNSECURED 03/28 4.1 | 2.0% |
| City of Longueuil 1.35% 06-MAY-2025 | 1.9% |
| City of Blainville 1.45% 16-JUL-2025 | 1.9% |
| Canadian Imperial Bank of Commerce 4.9% 02-APR-2027 | 1.8% |
| VILLE DE COTE ST LUC UNSECURED 10/28 5.25 | 1.8% |
| City of Mont-Royal 1.9% 09-MAR-2025 | 1.7% |
| City of Sorel-Tracy 1.4% 16-APR-2026 | 1.6% |
| Net asset value as at September 30, 2024 | 143 M $ |
Returns
Returns
* Returns for the first and last year are not annualized
$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 FDP Municipal Bond Portfolio, Series A posted a net return of 1.8% for the first six months of 2024. The FDP Municipal Bond Portfolio, Series I posted a net return of 2.1%. The Fund’s benchmark index posted a 1.4% return for the period.
Inflation fell within the Bank of Canada’s (BoC) target range in early 2024, though it remained above 2%. Consequently, the BoC maintained its restrictive monetary policy and kept its key rate high until very recently (with a 25 basis point reduction from 5.00% to 4.75% in early June 2024). Against this backdrop, the Portfolio’s curve positioning proved favourable as it steepened. Additionally, the relatively higher yields on municipal bonds helped protect capital and take advantage of higher rates on new issues over the holding period. The Portfolio’s exposure to certain high-quality corporate bonds, mostly with 4- and 5-year maturities, contributed several basis points of additional yield to maturity.
