Global Equity

Managers

• MFS Investment Management Canada Inc., 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.

Returns ^*

* Returns for the first and last year are not annualized

* Non annualized return

$1,000 Invested Amount since inception

The FDP Global Equity Portfolio, Series A posted a net return of 9.7% for the first six months of 2024, versus 15.1% for 2023. The FDP Global Equity Portfolio, Series I posted a net return of 10.3% for the first six months of 2024.

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 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. 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 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, S&P 500 growth-style stocks (especially those of the Magnificent Seven, the seven largest 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.

All eurozone markets (MSCI Europe) yielded returns of 9.8%, while Asian markets (MSCI AC Asia Pacific) gained 11.8% and emerging markets (iShares MSCI Emerging Markets ETF) gained 10.6% in Canadian dollars.

The Portfolio’s underperformance during the period was mainly due to its value-style holdings, which underperformed the MSCI World Index, while the Portfolio’s growth- style holdings generated a negative return that was in line with the index. Sector allocation helped returns while stock selection detracted from performance.