A blended-style fund that emphasizes long-term growth while also providing income.
Is this fund right for you?
- You’re looking to preserve your investment while still allowing it to grow.
- You want to invest in a combination of Canadian common shares, bonds and debentures.
- You're comfortable with a low to moderate level of risk.
Risk Rating
How is the fund invested?
(as of January 31, 2025)
Asset allocation (%)
|
Name |
Percent |
|
Canadian Equity |
30.3 |
|
Foreign Bonds |
24.2 |
|
US Equity |
17.9 |
|
Domestic Bonds |
14.1 |
|
International Equity |
9.1 |
|
Cash and Equivalents |
3.3 |
|
Income Trust Units |
0.9 |
|
Other |
0.2 |
Geographic allocation (%)
|
Name |
Percent |
|
Canada |
46.9 |
|
United States |
40.4 |
|
Germany |
2.7 |
|
United Kingdom |
1.8 |
|
Japan |
1.3 |
|
France |
0.9 |
|
Switzerland |
0.8 |
|
Taiwan |
0.6 |
|
Ireland |
0.5 |
|
Other |
4.1 |
Sector allocation (%)
|
Name |
Percent |
|
Fixed Income |
38.3 |
|
Financial Services |
15.1 |
|
Technology |
8.7 |
|
Energy |
7.2 |
|
Industrial Services |
5.1 |
|
Consumer Services |
4.5 |
|
Basic Materials |
4.3 |
|
Cash and Cash Equivalent |
3.3 |
|
Consumer Goods |
3.2 |
|
Other |
10.3 |
Growth of $10,000
(since inception)
Data not available based on date of inception
Fund details
(as of January 31, 2025)
| Top holdings |
% |
| Royal Bank of Canada |
2.5 |
| Toronto-Dominion Bank |
1.7 |
| Bank of Montreal |
1.6 |
| Microsoft Corp |
1.4 |
| Canadian Natural Resources Ltd |
1.3 |
| Canadian Pacific Kansas City Ltd |
1.3 |
| Apple Inc |
1.2 |
| Agnico Eagle Mines Ltd |
1.1 |
| Enbridge Inc |
1.1 |
| Sun Life Financial Inc |
1.0 |
| Total allocation in top holdings |
14.2 |
| Portfolio characteristics |
|
| Standard deviation |
8.4% |
| Dividend yield |
2.5% |
| Yield to maturity |
5.6% |
| Duration (years) |
5.5 |
| Coupon |
4.7% |
| Average credit rating |
BBB |
Understanding returns
Annual compound returns (%)
| 1 MO |
3 MO |
YTD |
1 YR |
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| 3 YR |
5 YR |
10 YR |
INCEPTION |
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Calendar year returns (%)
|
2024 |
2023 |
2022 |
2021 |
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|
2020 |
2019 |
2018 |
2017 |
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Range of returns over five years
(January 1, 2011 - March 31, 2025)
| Best return |
Best period end date |
Worst return |
Worst period end date |
|
7.1% |
March 2025 |
-1.1% |
March 2020 |
| Average return |
% of periods with positive returns |
Number of positive periods |
Number of negative periods |
|
3.3% |
99.1% |
111 |
1 |
Q4 2024 Fund Commentary
Market commentary
The Bank of Canada lowered overnight interest rates by 100 basis points (bps) during the quarter. The U.S. Federal Reserve Board cut its federal funds rate by 50 bps. As a result, 10-year bond yields in Canada and the U.S. increased by 27 bps and 78 bps, respectively.
Following the U.S. presidential election, the incoming administration announced potential tariffs on U.S. trading partners, including Canada. This created significant uncertainty across financial markets. The Canadian dollar fell by more than 6% against the U.S. dollar. Other global currencies also weakened, as economic activity outside the U.S. slowed.
Canadian and U.S. equity markets rose over the quarter, while global equity market performance was mixed.
The European Central Bank (ECB) reduced policy rates to 3.0% in December. The Bank of Japan maintained an accommodative stance but hinted at policy shifts in 2025. Japanese equities outperformed European and other Asian markets as exporters took advantage of a weak Japanese yen. China’s recovery remained subdued, even with tax cuts, because stimulus measures failed to shift growth trajectories.
Performance
The Fund’s relative exposure to Broadcom Inc. had a positive impact on performance. Relative exposure to Brookfield Corp. had a negative impact on performance.
Broadcom Inc. benefited from strong semiconductor results and software division growth. Increased revenues from high-performance chips used in artificial intelligence helped drive growth. Brookfield Corp. benefited from a decline in short-term interest rates. Sentiment also improved towards commercial real estate, financing conditions, and mergers and acquisitions.
At the sector level, stock selection in communication services was positive for performance. Stock selection in information technology and health care was negative.
Regionally, relative exposure to U.S. equities was positive for performance, while stock selection in Canada was negative.
In fixed income, security selection among corporate bonds had a positive impact on performance.
The sub-advisor added an equity holding in Techtronic Industries Co. Ltd. for its leadership in power tool battery technologies and expanding market opportunities in outdoor equipment and construction gear.
The sub-advisor increased U.S. Treasury (2.13%, 2054/02/15) as inflation remained a concern, supporting demand for inflation-linked securities. An equity holding in Waste Connections Inc. was increased because of favourable industry dynamics, profitable acquisitions and the potential for higher margins.
The sub-advisor sold Sika AG in favour of Techtronic Industries Co. Ltd. The sub-advisor decreased exposure to an AthenaHealth Group Inc. term loan to buy another healthcare technology term loan. An equity holding in TELUS Corp. was reduced because new immigration targets announced by the Canadian government are expected to impact demand for communication services.
Outlook
The sub-advisor is optimistic about Canadian equities in 2025. Strong immigration has only led to a small correction in housing prices and affordability. Lower interest rates are anticipated to boost economic activity by easing consumer interest burdens, increasing investor confidence, and encouraging business growth.
The new U.S. administration’s potential 25% tariffs pose significant risks for Canada, in the sub-advisor’s view, and could be inflationary. The sub-advisor believes uncertainty around long-term rates, with 30-year Canadian yields significantly lower than U.S. yields, could make Canadian bonds less attractive to investors.
U.S.–Canadian trade tensions could also affect Canadian corporate bond spreads (the difference in yield between corporate and government bonds). Until more clarity emerges, the sub-advisor remains focused on improving credit quality and liquidity rather than increasing exposure to corporate bonds.
The sub-advisor is optimistic about Canadian equities in 2025. Strong immigration trends have led to only a small correction in housing prices and affordability. Lower interest rates could support economic activity by easing consumers’ debt burdens, increasing investor confidence and encouraging business growth, in the sub-advisor’s view. As a result, the sub-advisor remains focused on investing in high-quality Canadian stocks.
In global markets, the sub-advisor believes resilient U.S. economic growth may slow because of higher interest rates and a weaker labour market. China’s growth could decelerate without new stimulus, while Japan could experience gradual economic growth and real wage gains. The Fed’s slow approach to lowering interest rates contrasts with the ECB’s more aggressive plan.
The sub-advisor believes this backdrop requires a careful balancing of the risks and opportunities created by moderating inflation, growth uncertainty, and evolving trade and immigration policies.