Global Fixed Income

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.

Returns ^*

* Returns for the first and last year are not annualized

* Non annualized return

$1,000 Invested Amount since inception

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.