December 31, 2025
A Canadian fixed-income fund that provides an opportunity for income generation over the longer term.
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 long-term Canadian government and corporate fixed-income securities, with some exposure to foreign fixed-income securities.
- You're comfortable with a low to moderate level of risk.
RISK RATING
How is the fund invested? (as of December 31, 2025)
| Name | Percent |
|---|---|
| Domestic Bonds | 98.6 |
| Cash and Equivalents | 1.1 |
| Foreign Bonds | 0.4 |
| Other | -0.1 |
| Name | Percent |
|---|---|
| Canada | 99.7 |
| Other | 0.3 |
| Name | Percent |
|---|---|
| Fixed Income | 99.0 |
| Cash and Cash Equivalent | 1.1 |
| Other | -0.1 |
Growth of $10,000 (since inception)
For the period 07/09/2018 through 12/31/2025 tr.with $10,000 CAD investment, The value of the investment would be $9,443
Fund details (as of December 31, 2025)
| Top holdings | Percent (%) |
|---|---|
| Canada Government 2.75% 01-Dec-2055 | 3.4 |
| Canada Government 3.50% 01-Dec-2057 | 3.3 |
| Canada Government 2.00% 01-Dec-2051 | 3.3 |
| Quebec Province 4.40% 01-Dec-2055 | 2.5 |
| Canada Government 1.75% 01-Dec-2053 | 2.4 |
| Ontario Province 4.60% 02-Jun-2039 | 2.0 |
| Ontario Province 3.45% 02-Jun-2045 | 1.8 |
| Ontario Province 2.90% 02-Dec-2046 | 1.7 |
| Ontario Province 3.75% 02-Dec-2053 | 1.7 |
| Ontario Province 2.65% 02-Dec-2050 | 1.6 |
| Total allocation in top holdings | 23.7 |
| Portfolio characteristics | Value |
|---|---|
| Standard deviation | 10.70% |
| Dividend yield | - |
| Yield to maturity | 4.46% |
| Duration (years) | 14.63% |
| Coupon | 3.77% |
| Average credit rating | AA |
| Average market cap (million) | - |
Understanding returns
Annual compound returns (%)
| 1 MO | 3 MO | YTD | 1 YR |
|---|---|---|---|
| -3.19 | -0.73 | -2.04 | -2.04 |
| 3 YR | 5 YR | 10 YR | INCEPTION |
|---|---|---|---|
| 2.07 | -4.91 | - | -0.76 |
Calendar year returns (%)
| 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|
| -2.04 | 0.20 | 8.34 | -22.54 |
| 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|
| -22.54 | -5.63 | 10.56 | 11.31 |
Range of returns over five years (August 01, 2018 - December 31, 2025)
| Best return | Best period end date | Worst return | Worst period end date |
|---|---|---|---|
| -0.51% | Dec 2023 | -5.57% | Jul 2025 |
| Average return | % of periods with positive returns | Number of positive periods | Number of negative periods |
|---|---|---|---|
| -3.14% | 0 | 0 | 30 |
Q3 2025 Fund Commentary
Market commentary
Long-term bond yields rose during the period, reaching year-to-date highs, but by mid-September yields had fallen, ending the quarter close to where they began. Factors contributing to this move included expectations of higher funding needs from the federal and provincial governments, global deficit concerns and elevated core inflation levels. Weak U.S. payrolls in September contributed to the decline in yields, with the anticipation of U.S. Federal Reserve Board (Fed) interest-rate cuts.
The Bank of Canada and the Fed cut interest rates by 0.25% in September, leaving overnight rates at 2.50% and 4.25%, respectively. As of the end of the quarter, market expectations were just below 0.25% of cuts in Canada and 0.50% of cuts in the U.S. by year end. Both headline and core consumer price index inflation was stable, but core inflation remained at the higher end of the 1–3% target band.
Performance
Overweight exposure to Enbridge Pipelines Inc. (4.33%, 2049) contributed to performance. Relative exposure to Canadian Utilities Ltd. (4.664%, 2054) detracted from performance because of its longer duration (sensitivity to interest rates) and rising Canadian yields.
Duration and positioning along the yield curve contributed to performance. The Fund was short duration, which contributed to performance as interest rates rose. Security selection within corporate bonds detracted from performance, particularly in energy and infrastructure. Underweight exposure to BBB-rated bonds in energy and infrastructure detracted from performance as these were the strongest performers during the quarter.
Portfolio activity
In July, a 12-year bond issued by Heathrow Funding Ltd. was added for its position at the long end of the yield curve. Accumulated cash balances were used to increase exposure to corporate bonds in the infrastructure segment. Provincial holdings that were nearing index ineligibility were sold, replaced with longer-dated assets. Province of Ontario bonds were trimmed and a small extension was completed to take advantage of yield-curve steepness.
In August, the sub-advisor added Choice Properties REIT in the 10-year tenor at new issue. The company is an infrequent issuer and it was one of the few opportunities to add real estate exposure. A variety of provincial holdings were increased to return the Fund to an overweight allocation to provincial product. Federal holdings were reduced, and the proceeds used to increase provincial and corporate holdings.
Outlook
While the sub-advisor expects there is potential for spread widening, it is likely not imminent. Because of this, the sub-advisor will look for attractive opportunities in the corporate space without increasing overall exposure. The Fund is positioned to take advantage of further steepening in the yield curve, which the sub-advisor expects to continue. Issuance of government-related debt will be monitored to determine the impacts on the yield curve.
Summary
For the period 07/09/2018 through 12/31/2025 with $10,000 CAD investment
Total returns performance
-5.57%
Last price
$9.44 CAD
as of market close 12/31/2025
Value of $10,000 investment
$9,442.80 CAD
