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 April 30, 2025)
Asset allocation (%)
|
Name |
Percent |
|
Domestic Bonds |
99.9 |
|
Cash and Equivalents |
0.1 |
Geographic allocation (%)
|
Name |
Percent |
|
North America |
99.9 |
|
Canada |
0.1 |
Sector allocation (%)
|
Name |
Percent |
|
Fixed Income |
99.9 |
|
Cash and Cash Equivalent |
0.1 |
Growth of $10,000
(since inception)
Data not available based on date of inception
Fund details
(as of April 30, 2025)
| Top holdings |
% |
| Canada Life Canadian Core Plus Fixed Income Fund Series S * |
99.9 |
| Cash and Cash Equivalents |
0.1 |
| Total allocation in top holdings |
100.0 |
| Portfolio characteristics |
|
| Standard deviation |
6.0% |
| Yield to maturity |
- |
| Duration (years) |
- |
| Coupon |
- |
| Average credit rating |
Not rated |
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 - April 30, 2025)
| Best return |
Best period end date |
Worst return |
Worst period end date |
|
-0.3% |
Dec. 2024 |
-1.3% |
Apri 2025 |
| Average return |
% of periods with positive returns |
Number of positive periods |
Number of negative periods |
|
-0.7% |
0.0% |
0 |
11 |
Q1 2025 Fund Commentary
Market commentary
The Canadian economy faced significant challenges during the first quarter, driven by trade disruptions and tariff uncertainty. While the U.S. postponed its broad-based tariffs multiple times, trade issues loomed large for investors and markets.
Despite these challenges, the Canadian economy was resilient. Canada’s gross domestic product growth was 1.5% last year and was expected to be 1.4% for 2025, according to the International Monetary Fund. However, productivity growth lagged, highlighting ongoing challenges to business investment in the current environment.
The Canadian fixed income market posted a gain. The yield on 10-year Canadian government bonds fell from 3.22% to 2.97%, leading to higher bond prices, particularly for longer-term government bonds. Investment-grade and high-yield corporate bonds gained, benefiting from the overall decline in yields and a stable credit environment.
Performance
The Fund’s relative exposure to U.S. Treasury (2.125%, 2054/02/15) was positive for performance as inflation-linked bonds outperformed. Relative exposure to Province of Quebec (4.4%, 2055/12/01) was negative for performance as provinces forecasted larger deficits.
The Fund’s duration (sensitivity to interest rates) was positive for performance as bond yields fell. The Fund’s yield curve positioning, with its higher allocation to longer-term bonds, was negative for performance. Short-term yields fell more than long-term yields over the quarter. Overweight exposure to corporate bonds was also negative for performance.
Portfolio activity
The sub-advisor added Government of Canada (3.25%, 2035/06/01) to adjust the Fund’s duration. The sub-advisor increased Toronto-Dominion Bank (7.283%, 2082/10/31) based on the value of Canadian dollar limited recourse capital notes.
Province of Alberta (2.95%, 2052/06/01) was sold in favour of a higher-yielding holding from the same issuer. Sunac China Holdings Ltd. was reduced as the company faced financial challenges, which led to its second restructuring.