Fund Overview
This fund is designed for investors who…
- Seek steady income and diversification of their assets.
- Are concerned with security and capital growth and whose risk tolerance is low.
Investment Objectives
- Achieve steady income and ensure invested capital preservation.
- Invest primarily in debt instruments of Canadian and foreign issuers.
- May also invest in equity securities of Canadian and foreign issuers paying dividends or income.
Fund Facts are published once a year. Read them now.
Summary
Volatility:
Low Category: Canadian Bond
Start Date: March 31, 1978
RRSP Admissibility: yes, 100% eligible
Benchmark:
- 50% DEX short term
- 50% DEX mid-term
Assets*: $251 455,644
Number of Securities: 85
Target Asset Mix
- Bonds: 100%
- Short Term: 0%
*As at April 30, 2024
Portfolio Management
Managers
- Professionals’ Financial – Mutual Funds Inc.
Main Securities as at March 31, 2024
| Government of Canada, 2.00%, Jun. 01, 2032 | 4.1% |
| The Bank of Nova Scotia, 5.50%, May 08, 2026 | 3.5% |
| Province of Ontario, 2.15%, Jun. 02, 2031 | 3.3% |
| Province of Ontario, 4.60%, Jun. 02, 2039 | 3.0% |
| Fédération des caisses Desjardins du Québec, 5.20%, Oct. 01, 2025 | 3.0% |
| The Toronto-Dominion Bank, 2.67%, Sep. 09, 2025 | 2.9% |
| Bank of Montreal, 5.04%, May 29, 2028 | 2.9% |
| Province of Ontario, 3.65%, Jun. 02, 2033 | 2.8% |
| Government of Canada, 1.75%, Dec. 01, 2053 | 2.7% |
| Province of Québec, 3.50%, Dec. 01, 2045 | 2.6% |
| Province of Ontario, 3.75%, Jun. 02, 2032 | 2.5% |
| Province of Québec, 3.25%, Sep. 01, 2032 | 2.5% |
| Province of Ontario, 3.50%, Jun. 02, 2043 | 2.4% |
| Province of Ontario, 2.05%, Jun. 02, 2030 | 2.4% |
| Government of Canada, 1.50%, Jun. 01, 2031 | 2.4% |
| Royal Bank of Canada, 5.34%, Jun. 23, 2026 | 2.3% |
| Province of British Columbia, 3.20%, Jun. 18, 2032 | 2.2% |
| Province of Québec, 5.00%, Dec. 01, 2041 | 2.1% |
| Province of Ontario, 3.45%, Jun. 02, 2045 | 1.9% |
| Royal Bank of Canada, 3.37%, Sep. 29, 2025 | 1.7% |
| Province of Ontario, 4.70%, Jun. 02, 2037 | 1.7% |
| CDP Financial Inc., 4.20%, Dec. 02, 2030 | 1.6% |
| Suncor Energy Inc., 5.60%, Nov. 17, 2025 | 1.6% |
| Canadian Imperial Bank of Commerce, 5.00%, Dec. 07, 2026 | 1.6% |
| Province of Ontario, 2.90%, Jun. 02, 2049 | 1.4% |
| Net asset value as at March 31, 2024 | 258 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 Managers’ Comments are taken from the Annual Management Report of Portfolio Performance (Operating Results), as at December 31, 2023.
The FDP Canadian Bond Portfolio, Series A posted a net return of 6.6% for 2023, versus -11.9% 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 more reasonable key interest rate increases (the Bank of Canada [BoC] hiked its key interest rate by 75 basis points [bps] during the year), as well as narrowing credit spreads and rising yields to maturity.
Both the U.S. Federal Reserve and the BoC continued to tighten their monetary policy and hiked their respective key interest rates to ease persistent inflationary pressure. Central bank measures to cool the economy and curb inflation appear to be working, but the labour market’s sustained strength has reduced the likelihood of a rate cut in the near term.
The yield curve inverted in 2022 and remained inverted in 2023. However, both provincial and corporate credit spreads generally narrowed during the year, reflecting easing fears of a recession and investors’ optimism about central banks’ ability to tamp down inflation and achieve a soft landing of the economy.
On a relative basis, the FDP Canadian Bond Portfolio added 105 bps in value thanks to its yield curve positioning and overweight to corporate bonds.
