Municipal Bond

Manager

• 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

$1,000 Invested Amount since inception

The FDP Municipal Bond Portfolio, Series A posted a net return of 1.8% for the first six months of 2024. The FDP Municipal Bond Portfolio, Series I posted a net return of 2.1%. The Fund’s benchmark index posted a 1.4% return for the period.

Inflation fell within the Bank of Canada’s (BoC) target range in early 2024, though it remained above 2%. Consequently, the BoC maintained its restrictive monetary policy and kept its key rate high until very recently (with a 25 basis point reduction from 5.00% to 4.75% in early June 2024). Against this backdrop, the Portfolio’s curve positioning proved favourable as it steepened. Additionally, the relatively higher yields on municipal bonds helped protect capital and take advantage of higher rates on new issues over the holding period. The Portfolio’s exposure to certain high-quality corporate bonds, mostly with 4- and 5-year maturities, contributed several basis points of additional yield to maturity.