Fund Overview
This fund is designed for investors who …
- Seek capital preservation and steady income generation, as well as attractive long-term growth potential.
- Have a low to medium risk tolerance.
- Have a long-term investment horizon.
Investment Objectives
- Achieve a long-term global return through an appropriate stock selection and by taking advantage of interest rate and currency rate shifts on world markets.
- Invest primarily in debt instruments of foreign issuers that may be denominated in other currencies than the Canadian dollar and have different maturity dates. The issuers of securities may be established worldwide, including Canada and emerging countries.
Fund Facts are published once a year. Read them now.
Summary
Volatility:
Low / Average Category: Fixed Income
Start Date: January 25, 2013
RRSP Admissibility: Yes, 100% eligible
Benchmark:
- 70%: Merrill Lynch Global High Yield BB/B Index 2% Issuer Constrained (hedged to the Canadian dollar)
- 15%: Barclays Capital Global Aggregate Credit Index (hedged to the Canadian dollar)
- 15%: FTSE TMX Universe
Assets*: $198,702,146
Number of Securities: 669
Target Asset Mix:
- Short term: 0%
- Global and Canadian government and corporate bonds: 100%
*As at April 30, 2024
Portfolio Management
Managers
- Amundi Canada inc., Manulife Investment Management Limited (US) et Manulife Investment Management Limited (Hong Kong), 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
| iShares 0-5 Year Investment Grade Corporate Bond ETF | 6.6% |
| iShares iBoxx $ Investment Grade Corporate Bond ETF | 6.6% |
| iShares 7-10 Year Treasury Bond ETF | 5.9% |
| iShares 3-7 Year Treasury Bond ETF | 4.3% |
| Canadian Dollar | 2.5% |
| U.S. Dollar | 1.7% |
| United States Treasury Note, 1.875%, Feb. 15, 2033 | 0.9% |
| United States Treasury Note, 2.75%, Aug. 15, 2032 | 0.8% |
| ABRA Global Finance, 18.0%, Mar. 02, 2028 | 0.6% |
| United States Treasury Note, 3.5%, Feb. 15, 2032 | 0.5% |
| New Zealand 3.5% 14-APR-2033 | 0.5% |
| United States Treasury Note, 2.875%, May 15, 2032 | 0.4% |
| Government of Brazil 10.0% 01-JAN-2027 | 0.4% |
| Energean Plc 6.5% 30-APR-2027 | 0.4% |
| Government of South Korea 2.375% 10-MAR-2027 | 0.4% |
| United States Treasury Bond 3.0% 15-FEB-2049 | 0.4% |
| Japan 0.005% 01-DEC-2024 | 0.4% |
| Delta Air Lines, Inc. / SkyMiles IP Ltd., 4.75%, Oct. 20, 2028 | 0.3% |
| HCA Inc. 3.5% 01-SEP-2030 | 0.3% |
| FHLMC 30yr Pool#SD7563 4.500% 01-May-2053 | 0.3% |
| Government of Indonesia 6.375% 15-APR-2032 | 0.3% |
| Sammaan Capital Limited, 9.70%, Jul. 03, 2027 | 0.3% |
| Limak Cimento Sanayi ve Ticaret A.S. 9.75% 25-JUL-2029 | 0.3% |
| Ford Motor Company 3.25% 12-FEB-2032 | 0.3% |
| Government of Mexico 5.0% 06-MAR-2025 | 0.3% |
| Net asset value as at September 30, 2024 | 277 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 Global Fixed Income Portfolio, Series A posted a net return of 2.0% for the first six months of 2024, versus 7.1% for 2023. The FDP Global Fixed Income Portfolio, Series I posted a net return of 2.7% for the first six months of 2024.
The Portfolio’s benchmark index generated a 1.8% return for the first six months of 2024. The portion invested in the global high-yield bond market, as measured by the ICE BofAML Global High Yield Index (currency hedged), was particularly beneficial for the index, posting a return of 3.2% for the period. This asset class continues to benefit from a somewhat greater likelihood that inflation will be curbed while the economy will achieve a soft landing. As in 2023, credit spreads for both high-yield bonds and bank loans narrowed since the beginning of the year, causing bonds to increase in value. Yield spreads have reached historically low levels, reflecting investor optimism and renewed interest in fixed-income securities, which now offer more attractive yields to maturity compared to the last decade, when rates were at their lowest.
With inflation generally above target, central banks have maintained restrictive monetary policies and kept key interest rates high or implemented a very limited number of modest rate cuts. Despite several central banks including the U.S. Federal Reserve (Fed) postponing rate cuts, investors remain optimistic that they will occur before the end of the year without triggering a severe economic downturn.
