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 March 31, 2024
| Cash and Cash Equivalents | 12.5% |
| National Bank of Canada, 5.22%, Jun. 14, 2028 | 3.3% |
| City of Rouyn-Noranda, 0.95%, Nov. 10, 2025 | 3.3% |
| Bank of Montreal, 4.71%, Dec. 07, 2027 | 3.3% |
| The Toronto-Dominion Bank, 4.21%, Jun. 01, 2027 | 3.2% |
| Société de transport de l’Outaouais, 4.20%, Apr. 12, 2028 | 3.0% |
| City of Lévis, 2.50%, Feb. 28, 2027 | 2.9% |
| City of Westmount, 4.00%, May 16, 2028 | 2.8% |
| City of Rimouski, 4.50%, Dec. 01, 2027 | 2.7% |
| City of Lévis, 5.00%, Nov. 27, 2028 | 2.6% |
| City of Saint-Hyacinthe, 4.50%, Mar. 03, 2028 | 2.6% |
| City of Rimouski, 0.90%, Oct. 29, 2025 | 2.4% |
| Société de transport de Laval, 4.70%, Nov. 10, 2027 | 2.4% |
| Réseau de transport métropolitain, 4.25%, Jan. 29, 2028 | 2.1% |
| City of Mont-Tremblant, 5.00%, Aug. 28, 2028 | 2.0% |
| Royal Bank of Canada, 4.64%, Jan. 17, 2028 | 2.0% |
| City of Saint-Lambert, 2.00%, Jan. 24, 2027 | 1.9% |
| Province of Québec, 2.75%, Sep. 01, 2028 | 1.9% |
| City of Côte Saint-Luc, 1.95%, Dec. 02, 2026 | 1.8% |
| Municipality of Morin-Heights, 4.20%, Apr. 24, 2028 | 1.8% |
| Town of Sainte-Agathe-des-Monts, 4.10%, Mar. 31, 2028 | 1.8% |
| Province of Québec, 2.50%, Sep. 01, 2026 | 1.8% |
| City of Longueuil, 1.35%, May 06, 2025 | 1.7% |
| City of Blainville, 1.45%, Jul. 16, 2025 | 1.7% |
| City of Côte Saint-Luc, 5.25%, Oct. 30, 2028 | 1.6% |
| Net asset value as at March 31, 2024 | 154 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 Managers’ Comments are taken from the Annual Management Report of Portfolio Performance (Operating Results), as at December 31, 2023.
The FDP Municipal Bond Portfolio, Series A posted a net return of 0.9% since its initial investment on December 6, 2023. In addition, the FDP Municipal Bond Portfolio, Series I posted a net return of 2.0% since it was launched on November 27, 2023. The Fund’s benchmark index posted a 1.9% return for the period from November 27, 2023, to the end of the year.
Inflation is still above the Bank of Canada’s target range. As a result, the central bank continued to tighten its monetary policy and hike its key interest rate (from 4.25% early in the year to 5.00% as at December 31, 2023), albeit at a slower pace than in 2022 (when the increases totalled 400 basis points). Against this backdrop, the relatively high yields on municipal bonds protected capital and allowed the Portfolio to benefit from higher rates on new issues.
The FDP Municipal Bond Portfolio invested a portion of its capital in Canadian chartered banks and took advantage of higher yields to maturity than its benchmark. During the period from November 27, 2023, to December 31, 2023, these holdings also benefited from tightening credit spreads.
