The Fund seeks to maximize income while preserving capital and maintaining liquidity by investing primarily in Canadian money market instruments such as treasury bills and short-term government and corporate debt.
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 and corporate bonds, as well as other debt securities issued in Canada and around the world.
- You're comfortable with a low level of risk.
Risk Rating
How is the fund invested?
(as of May 31, 2025)
Asset allocation (%)
|
Name |
Percent |
|
Domestic Bonds |
75.2 |
|
Foreign Bonds |
14.2 |
|
Cash and Equivalents |
10.4 |
|
Canadian Equity |
0.1 |
|
US Equity |
0.1 |
Geographic allocation (%)
|
Name |
Percent |
|
Canada |
84.4 |
|
United States |
11.4 |
|
New Zealand |
2.9 |
|
North America |
1.0 |
|
France |
0.3 |
|
Europe |
0.1 |
|
Other |
-0.1 |
Sector allocation (%)
|
Name |
Percent |
|
Fixed Income |
89.3 |
|
Cash and Cash Equivalent |
10.4 |
|
Consumer Goods |
0.1 |
|
Financial Services |
0.1 |
|
Utilities |
0.1 |
Growth of $10,000
(since inception)
Data not available based on date of inception
Fund details
(as of May 31, 2025)
| Top holdings |
% |
| Canada Government 3.25% 01-Jun-2035 |
6.6 |
| Cash and Cash Equivalents |
4.7 |
| Ontario Province 3.60% 02-Jun-2035 |
3.4 |
| Canada Government 2.75% 01-Dec-2055 |
2.9 |
| Quebec Province 4.40% 01-Dec-2055 |
2.4 |
| Canada Government 3.25% 01-Dec-2034 |
2.4 |
| Canada Housing Trust No 1 2.25% 15-Dec-2025 |
2.3 |
| New Zealand Government 3.50% 14-Apr-2033 |
1.9 |
| TransCanada Trust 4.65% 18-May-2027 |
1.7 |
| Canada Government 3.00% 01-Jun-2034 |
1.6 |
| Total allocation in top holdings |
29.9 |
| Portfolio characteristics |
|
| Standard deviation |
5.6% |
| Yield to maturity |
4.3% |
| Duration (years) |
7.4 |
| Coupon |
4.2% |
| Average credit rating |
A+ |
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
(July 1, 2019 - July 31, 2025)
| Best return |
Best period end date |
Worst return |
Worst period end date |
|
-0.3% |
Dec. 2024 |
-2.0% |
July 2025 |
| Average return |
% of periods with positive returns |
Number of positive periods |
Number of negative periods |
|
-1.0% |
0.0% |
0 |
14 |
Q2 2025 Fund Commentary
Market commentary
Canada’s economy slowed in the second quarter. Trade disruptions from U.S. tariff announcements weighed heavily on the economy. Gross domestic product and exports declined. The Bank of Canada (BoC) said ongoing trade tensions with the U.S. could lead to weaker growth for Canada.
The BoC kept its key interest rate at 2.75% and highlighted the need to act carefully between supporting growth and managing inflation. Business investment and household spending remained subdued. Canada’s unemployment rate rose to 7.0%, the highest level since 2021, as job creation lagged labour-force growth.
The Canadian fixed income market declined. Yields on 10-year Government of Canada bonds increased as the BoC held rates steady and Canada’s first-quarter growth was stronger than expected. Government bonds declined and generally underperformed investment-grade corporate bonds, which posted a small gain. High-yield bonds rose because of improving risk sentiment and investor appetite for income.
Performance
The Fund’s relative exposure to Rogers Communications Inc. (5.0%, 2081/12/17) was positive for performance. The bond was supported by stable fundamentals and strong investor demand for yield. Relative exposure to U.S. Treasury (4.625%, 2055/02/15) was negative for performance because of its longer duration (sensitivity to interest rates). The bond’s longer term made it sensitive to the upward shift in the yield curve.
At the sector level, overweight exposure to corporate bonds had a positive impact on the Fund’s performance. The sub-advisor managed the Fund’s duration positioning when the yield curve steepened, which was positive for performance. In U.S. holdings, longer-term bonds were negative for performance.
Portfolio activity
The sub-advisor added a new issue of The Toronto-Dominion Bank (3.842%, 2031/05/29) to increase the Fund’s exposure to short-term corporate bonds. The company’s strong credit ratings and capital position supported investor demand. A holding in Government of Canada (3.25%, 2035/06/01) was increased.
T-Mobile USA Inc. (5.2%, 2033/01/15) was sold to reduce U.S. corporate bond exposure and the proceeds were shifted to align with the Fund’s preferred geographic positioning. U.S. Treasury (4.625%, 2055/02/15) was reduced because of its long term, which made it sensitive to the steepening of the yield curve and rising interest rates for long-term issues.