Fund Overview
This fund is designed for investors who …
- Have a more aggressive participant profile with a long-term investment horizon.
- Have a low to medium tolerance to risk.
Investment Objectives
- Achieve a return comprised mostly of long-term capital growth and also of a steady income.
- Invest primarily in equity securities of Canadian and foreign issuers and in debt instruments 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: April 30, 2001
RRSP Admissibility: Yes, 100% eligible
Benchmark:
- 25% S&P/TSX Composite Index
- 40% MSCI World (in CA$)
- 30% DEX short term/mid-term
- 5% 91-day Treasury Bonds
Assets*: $305,555,518
Number of Securities: 25
Target Asset Mix:
- International Equities: 26.8%
- Bond & Fixed Income : 19.3%
- Canadian Equities: 20.2%
- American Equities: 31.5%
- Cash & Equiv.: 2.2%
*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
| FDP Global Equity Portfolio A | 22.3% |
| FDP Canadian Equity Portfolio A | 14.6% |
| iShares Core MSCI EAFE ETF | 14.1% |
| SPDR S&P 500 ETF Trust | 10.6% |
| FDP Canadian Bond Portfolio | 6.6% |
| Cash and Cash Equivalents | 5.7% |
| Government of Canada, 2.25%, Jun. 01, 2029 | 5.5% |
| Invesco QQQ Trust, Series 1 | 4.9% |
| iShares Core MSCI Emerging Markets ETF | 4.4% |
| iShares S&P/TSX 60 Index ETF | 3.9% |
| Invesco S&P 500 Equal Weight ETF | 2.6% |
| FDP Global Fixed Income Portfolio | 2.3% |
| iShares Core S&P/TSX Capped Composite Index ETF | 1.9% |
| FDP Emerging Markets Equity Portfolio | 0.6% |
| Net asset value as at March 31, 2024 | 311 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 Balance Growth Portfolio, Series A posted a net return of 12.4% for 2023, versus -10.4% for 2022.
The bond market, as measured by the FTSE Canada Universe Bond Index, posted a 6.7% return for the year. The index’s positive return is mainly attributable to key interest rates having apparently reached their peak (the Bank of Canada hiked its key interest rate by 75 basis points [bps] in the first half of the year and kept it unchanged thereafter), the prospect of rate cuts in the near future, as well as credit spreads narrowing and bond yields to maturity rising.
Rate hikes weighed heavily on Canadian markets, but the unexpectedly resilient Canadian economy drove investors’ optimism. The Canadian stock market, as measured by the S&P/TSX Composite Index, posted an 11.8% return for 2023, led by technology stocks such as Shopify and Constellation Software.
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. Late in the year, the Fed signalled it might cut rates in the near future, injecting a healthy dose optimism in the market. 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 in the Magnificent Seven, the seven largest U.S. technology companies) contributed the most to performance during the year.
The global stock market, as measured by the MSCI World Index, posted a 20.5% return in Canadian dollars for 2023, which offset most of the losses suffered in 2022. All eurozone markets (MSCI Europe) yielded positive returns of 17.4%, while Asian markets (MSCI AC Asia Pacific) gained 8.1% and emerging markets (iShares MSCI Emerging Markets ETF) 5.6% in Canadian dollars.
The Canadian dollar appreciated about 2.1% against the U.S. dollar, which impeded returns for Canadian investors.
On a relative basis and gross of management fees, the FDP Balanced Growth Portfolio underperformed its blended index by 32 bps. The portfolio’s negative relative performance is essentially due to its Canadian and global equity holdings.
In terms of positioning, the Portfolio remained overweight to equities relative to its peers and maintained an overweight to Canadian securities.
