Fund overview & performance

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Canada Life Mutual Funds

CAN Diversified Fixed Income II 100/100 (PP)

September 30, 2026

Is this fund right for you?

  • A person who is investing for the medium to longer term and seeking potential for interest income in their portfolio and is comfortable with low risk.
  • Since the fund invests in bonds anywhere in the world, its value is affected by changes in interest rates and foreign exchange rates between currencies.

RISK RATING

Risk Rating: Low to Moderate

How is the fund invested? (as of September 30, 2026)

Asset allocation (%)
Name Percent
Domestic Bonds 100.0
Geographic allocation (%)
Name Percent
Canada 100.0
Sector allocation (%)
Name Percent
Fixed Income 100.0

Growth of $10,000 (since inception)

Period:

For the period 07/09/2018 through 09/30/2026 tr.with $10,000 CAD investment, The value of the investment would be $12,517

Fund details

As of September 30, 2026
Top holdings (%)
Top holdings Percent (%)
Canada Life Diversified Fixed Income Portfolio S 100.0
Cash and Cash Equivalents 0.0
Total allocation in top holdings 100.0
As of September 30, 2026
Portfolio characteristics
Portfolio characteristics Value
Standard deviation 3.30%
Dividend yield -
Yield to maturity -
Duration (years) -
Coupon -
Average credit rating Not rated
Average market cap (million) -

Understanding returns

Annual compound returns (%)

Short term
1 MO 3 MO YTD 1 YR
-0.87 0.61 -0.13 0.32
Long term
3 YR 5 YR 10 YR INCEPTION
5.71 1.39 - 2.77

Calendar year returns (%)

2025 - 2022
2025 2024 2023 2022
4.04 7.62 7.96 -10.87
2021 - 2018
2021 2020 2019 2018
2.58 5.69 11.87 -

Range of returns over five years (August 01, 2018 - September 30, 2026)

Best return / Worst return
Best return Best period end date Worst return
Worst period end date
4.41% Mar 2025 0.88% Sep 2023
Summary
Average return % of periods with positive returns Number of positive periods Number of negative periods
2.26% 100 39 0

Q2 2026 Fund Commentary

Commentary and opinions are provided by Canada Life Investment Management.

Market commentary

North American economies followed different paths in the second quarter. Canada’s economy stayed under pressure from trade uncertainty, while the U.S. economy expanded at a solid pace. Inflation picked up in both countries because of higher energy costs tied to the conflict in the Middle East, though oil prices retreated late in the quarter as tensions eased.

Monetary policy stayed on hold in both countries. The Bank of Canada held its policy interest rate steady at 2.25% at its April and June meetings, while the U.S. Federal Reserve Board held the federal funds rate steady at a target range of 3.50%–3.75% and signaled that rate increases were possible later in the year.

Multi-sector fixed income delivered mixed results. U.S. government bond yields rose as the market priced in the possibility of Fed rate increases, putting downward pressure on prices, while Canadian bond yields eased late in the quarter on contained inflation. Investment-grade corporate bonds were broadly stable, and energy-sector issuers held up well. High-yield bonds were choppy but finished higher as the interest-rate outlook shifted.

Performance

Exposure to utilities contributed to performance, as did select industrials and loan exposures. Galaxy Digital Holdings LP (0.5%, 2031/05/01) was the largest contributor to performance. It benefited from better sentiment toward digital assets, supported by stronger cryptocurrency prices and growing institutional adoption.

Security selection among corporate holdings detracted from performance, particularly the industrials, energy and financials sectors. Cannabist Company Holdings Inc. (9.25%, 2028/12/31) detracted from performance as it faced pressure from pricing compression, regulatory uncertainty, and lower access to capital.

Portfolio activity

Blackstone Private Credit Fund (5.95%, 2031/05/15) was added for its scale, sponsor affiliation and mostly first-lien portfolio. This may support resilient credit performance through economic cycles.

Light and Wonder International Inc. (6.25%, 2033/10/01) was increased based on its lower debt, market position and regulated gaming market. The bond has the potential to participate in ongoing credit improvement while earning an attractive yield.

Frontier Communications Corp. (6.75%, 2029/05/01) was eliminated. Following its financial restructuring several years ago, the company invested in network modernization and fiber deployment to improve customer growth and cash flow.

Ashton Woods USA LLC (4.625%, 2029/08/01) was reduced. While the sub-advisor believes in the issuer’s ability to generate profit, its valuation doesn’t compensate for industry risks and private-company ownership.

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CAN Diversified Fixed Income II 100/100 (PP)

CAN Diversified Fixed Income II 100/100 (PP)

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ID Effective date Price ($) Income Capital gain Total distribution