December 31, 2025
A Canadian fund seeking interest income and growth potential while also trying to reduce volatility by investing in shorter-term bonds.
Is this fund right for you?
- You want to protect your money from inflation while also protecting it from large swings in the market.
- You want to invest in government or government-guaranteed instruments with credit ratings of A or higher.
- You're comfortable with a low level of risk.
RISK RATING
How is the fund invested? (as of December 31, 2025)
| Name | Percent |
|---|---|
| Domestic Bonds | 97.3 |
| Cash and Equivalents | 2.7 |
| Name | Percent |
|---|---|
| Canada | 100.0 |
| Name | Percent |
|---|---|
| Fixed Income | 97.3 |
| Cash and Cash Equivalent | 2.7 |
Growth of $10,000 (since inception)
For the period 10/05/2009 through 12/31/2025 tr.with $10,000 CAD investment, The value of the investment would be $10,641
Fund details (as of December 31, 2025)
| Top holdings | Percent (%) |
|---|---|
| Canada Housing Trust No 1 3.10% 15-Jun-2028 | 26.7 |
| Canada Housing Trust No 1 1.90% 15-Sep-2026 | 17.6 |
| Ontario Province 3.60% 02-Jun-2035 | 17.4 |
| Canada Housing Trust No 1 2.90% 15-Dec-2029 | 11.3 |
| Canada Government 4.00% 01-Mar-2029 | 5.1 |
| Alberta Province 2.05% 01-Jun-2030 | 4.8 |
| Ontario Province 3.60% 08-Mar-2028 | 3.6 |
| Canada Government 3.25% 01-Dec-2034 | 3.5 |
| PSP Capital Inc. 2.60% 29-Feb-2032 | 3.2 |
| Quebec Province 2.75% 01-Sep-2027 | 2.1 |
| Total allocation in top holdings | 95.3 |
| Portfolio characteristics | Value |
|---|---|
| Standard deviation | 2.68% |
| Dividend yield | - |
| Yield to maturity | 2.90% |
| Duration (years) | 3.52% |
| Coupon | 2.95% |
| Average credit rating | AA |
| Average market cap (million) | - |
Understanding returns
Annual compound returns (%)
| 1 MO | 3 MO | YTD | 1 YR |
|---|---|---|---|
| -0.63 | 0.48 | 1.54 | 1.54 |
| 3 YR | 5 YR | 10 YR | INCEPTION |
|---|---|---|---|
| 2.62 | 0.06 | 0.09 | 0.38 |
Calendar year returns (%)
| 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|
| 1.54 | 2.62 | 3.71 | -4.58 |
| 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|
| -4.58 | -2.76 | 3.77 | 0.68 |
Range of returns over five years (November 01, 2009 - December 31, 2025)
| Best return | Best period end date | Worst return | Worst period end date |
|---|---|---|---|
| 1.42% | Mar 2015 | -0.95% | May 2022 |
| Average return | % of periods with positive returns | Number of positive periods | Number of negative periods |
|---|---|---|---|
| -0.04% | 37 | 50 | 85 |
Q3 2025 Fund Commentary
Market commentary
Canada’s economy faced challenges in the third quarter as trade tensions with the U.S. continued. This weighed on trade activity and the manufacturing sector. Household spending demonstrated resiliency despite a slowing labour market and economic uncertainty.
The Bank of Canada (BoC) lowered its key interest rate to 2.50%, citing a weaker labour market and easing inflation. The BoC emphasized a cautious approach to balancing growth and price stability. Canada’s unemployment rate was 7.1%, the highest since 2021, with youth unemployment rising sharply.
The Canadian fixed income market posted gains. Yields on 10-year Government of Canada bonds finished at 3.18%, slightly lower than 3.27% at the beginning of the quarter. Government bond prices increased, while investment-grade corporate bonds outperformed. High-yield bonds rose, driven by improving risk sentiment and appetite for income.
Performance
The Fund’s relative exposure to Province of Ontario (3.6%, 2035/06/02) contributed to performance as mid-term provincial bonds outperformed the benchmark, supported by strong investor demand. Ontario’s credit profile and market liquidity made it an attractive holding. Relative exposure to Canada Housing Trust No. 1 (1.9%, 2026/09/15) detracted from performance as short-term federal agency bonds underperformed.
At the sector level, exposure to provincial bonds contributed to the Fund’s performance. Exposure to federal government bonds detracted from performance.
Portfolio activity
Canada Housing Trust No. 1 (1.95%, 2025/12/15) was reduced because of portfolio flow management, with proceeds reallocated to meet liquidity needs.
Summary
For the period 10/05/2009 through 12/31/2025 with $10,000 CAD investment
Total returns performance
6.41%
Last price
$10.64 CAD
as of market close 12/31/2025
Value of $10,000 investment
$10,641.26 CAD
