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:
- 40% MSCI World in Canadian dollar
- 30% FTSE TMX Universe
- 25% S&P/TSX Composite
- 5% FTSE Canada 91 Day T-Bill
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 September 30, 2024
| FDP Global Equity Portfolio A | 21.3% |
| FDP Canadian Equity Portfolio A | 14.1% |
| iShares Core MSCI EAFE ETF | 13.3% |
| SPDR S&P 500 ETF Trust | 10.4% |
| FDP Canadian Bond Portfolio A | 6.2% |
| Canada Treasury Bonds 2.25% 01-JUN-2029 | 5.1% |
| Invesco QQQ Trust, Series 1 | 4.8% |
| iShares Core MSCI Emerging Markets ETF | 4.4% |
| iShares S&P/TSX 60 Index ETF | 3.8% |
| Invesco S&P 500 Equal Weight ETF | 3.5% |
| Government of Canada 0.0% 05-DEC-2024 | 2.9% |
| FDP Global Fixed Income Portfolio A | 2.2% |
| iShares Core S&P/TSX Capped Composite Index ETF | 1.8% |
| Government of Canada 0.0% 24-OCT-2024 | 1.4% |
| Government of Canada 0.0% 21-NOV-2024 | 1.4% |
| Government of Canada 0.0% 18-DEC-2024 | 1.4% |
| Canadian dollar | 0.7% |
| FDP Emerging Market Equity Portfolio A | 0.6% |
| iShares Core S&P 500 ETF | 0.2% |
| U.S. Dollar | 0.1% |
| Net asset value as at September 30, 2024 | 345 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 Growth Portfolio, Series A posted a net return of 8.2% for the first six months of 2024, versus 12.3% 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 Growth Portfolio outperformed its blended index over the first six months of 2024. The FDP Balanced Growth 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.
