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% FTSE TMX Universe
- 35% S&P/TSX Composite
- 15% MSCI World in Canadian dollar
- 5% FTSE Canada 91 Day T-Bill
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 September 30, 2024
| FDP Canadian Equity Portfolio A | 43.9% |
| FDP Canadian Bond Portfolio A | 32.9% |
| FDP Global Equity Portfolio A | 14.6% |
| FDP Global Fixed Income Portfolio A | 6.1% |
| FDP Emerging Markets Equity Portfolio A | 1.2% |
| FDP US Index Equity Portfolio | 0.8% |
| Canadian Dollar | 0.5% |
| U.S. Dollar | 0.0% |
| Net asset value as at September 30, 2024 | 391 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 FDP Balanced Portfolio, Series A posted a net return of 4.4% for the first six months of 2024, versus 8.7% for 2023.
The bond market, as measured by the FTSE Canada Universe Bond Index, posted a -0.4% return for the first six months of 2024. The index’s negative return is mainly attributable to the steepening of the yield curve and lowered expectations of a key interest rate cut in the near term. These negative impacts on the Portfolio’s returns were mitigated by the continued narrowing of credit spreads and the rise in yields to maturity.
The modest key interest rate reduction in early June 2024 (the first since the start of the COVID-19 pandemic in March 2020) was well received in the country and bolstered Canadian stock markets. The economy remains resilient and investors are optimistic. The Canadian stock market, as measured by the S&P/TSX Composite Index, posted a 6.1% return over the first six months of 2024, driven by the Energy and Materials sectors.
In the United States, the U.S. Federal Reserve paused its interest rate hikes until the end of June 2024, keeping its key interest rate within the 5.25%–5.50% range. Its highly anticipated first rate cut was repeatedly delayed due to persistent inflation, which remains above target, and concerns about implementing a cut before the November election. The U.S. stock market, as measured by the S&P 500 Index, posted a 19.6% return in Canadian dollars for the first half of 2024. As was the case for the MSCI World Index, growth-style stocks (especially those of the Magnificent Seven, the seven largest U.S. technology companies) contributed the most to gains during the first six months of 2024, continuing a trend from 2023. These seven stocks now account for 30% of the S&P 500 Index.
The global stock market, as measured by the MSCI World Index, posted a 16.0% return in Canadian dollars for the first half of 2024. The pause in key interest rate hikes in major global markets (and even slight cuts in some countries) coupled with the growing possibility of inflation stabilizing at reasonable levels (within central banks’ target ranges) helped growth stocks outperform value stocks over the first half of 2024, which continues to greatly benefit technology companies.
The Canadian dollar depreciated about 1.6% against the U.S. dollar, which had a positive impact on returns for Canadian investors holding U.S. dollar- denominated assets.
On a relative basis and gross of management fees, the FDP Balanced Portfolio outperformed its blended index over the first six months of 2024. The FDP Balanced Portfolio’s positive performance is essentially due to its Canadian equity and fixed- income holdings.
In terms of positioning, the Portfolio remained overweight to equities relative to its peers and maintained an overweight to Canadian securities.
