A global value fund that seeks to generate income and long-term growth.
Is this fund right for you?
- A person who is investing for the medium to longer term and seeking exposure to foreign bonds and stocks and is comfortable with low to Medium risk.
- Since the fund invests in stocks and bonds anywhere in the world, its value is affected by changes in the interest rates and by stock prices which can rise and fall in a short period of time.
Risk Rating
How is the fund invested?
(as of April 30, 2025)
Asset allocation (%)
|
Name |
Percent |
|
US Equity |
42.3 |
|
Domestic Bonds |
25.9 |
|
International Equity |
22.8 |
|
Cash and Equivalents |
5.3 |
|
Canadian Equity |
3.4 |
|
Foreign Bonds |
0.3 |
Geographic allocation (%)
|
Name |
Percent |
|
United States |
42.4 |
|
Canada |
34.5 |
|
Switzerland |
4.7 |
|
United Kingdom |
4.3 |
|
Germany |
2.6 |
|
Ireland |
2.3 |
|
Netherlands |
1.8 |
|
France |
1.8 |
|
Norway |
1.5 |
|
Other |
4.1 |
Sector allocation (%)
|
Name |
Percent |
|
Fixed Income |
26.1 |
|
Technology |
12.3 |
|
Financial Services |
12.1 |
|
Healthcare |
12.0 |
|
Consumer Goods |
9.8 |
|
Telecommunications |
5.9 |
|
Industrial Goods |
5.8 |
|
Cash and Cash Equivalent |
5.3 |
|
Consumer Services |
3.9 |
|
Other |
6.8 |
Growth of $10,000
(since inception)
Data not available based on date of inception
Fund details
(as of April 30, 2025)
| Top holdings |
% |
| eBay Inc |
2.6 |
| Gen Digital Inc |
2.4 |
| Amdocs Ltd |
2.4 |
| Merck & Co Inc |
2.3 |
| Medtronic PLC |
2.3 |
| Amgen Inc |
2.3 |
| PPG Industries Inc |
2.3 |
| Comcast Corp Cl A |
2.2 |
| Kimberly-Clark Corp |
2.2 |
| American Express Co |
2.1 |
| Total allocation in top holdings |
23.1 |
| Portfolio characteristics |
|
| Standard deviation |
11.0% |
| Dividend yield |
2.7% |
| Yield to maturity |
4.0% |
| Duration (years) |
7.9 |
| Coupon |
4.3% |
| Average credit rating |
AA- |
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
| Best return |
Best period end date |
Worst return |
Worst period end date |
|
Data not available based on date of inception
|
| Average return |
% of periods with positive returns |
Number of positive periods |
Number of negative periods |
|
Data not available based on date of inception
|
Q1 2025 Fund Commentary
Market commentary
The first quarter of 2025 was characterized by uncertainty and financial market volatility amid persistent inflation and continued geopolitical conflict. The new U.S. administration’s tariffs strained relations between the U.S. and the rest of North America, which added to equity market volatility. Amid trade policy uncertainty, and as the April roll-out date for new tariffs approached, the U.S. equity market declined. Despite volatility, the Canadian equity and bond markets posted positive returns.
Performance
Within equities, the Fund’s relative exposure to Amgen Inc., Medtronic PLC and eBay Inc. had the most positive impact on performance. Amgen benefited from its drug pipeline and track record for drug development. Medtronic is simplifying its business and has become more focused on operational excellence (for example, on margins and returns). Shares of eBay benefited from improved investor sentiment, driven by positive financial results.
Relative exposure to NetApp Inc., Polaris Inc. and American Express Co. was negative for performance. NetApp’s stock declined after it released lower-than-expected third-quarter earnings results. Polaris was affected by negative sentiment across the powersports equipment industry, compounded by the uncertainty around the effect of tariffs. American Express was also impacted by uncertainty related to tariffs.
Within Canada, at the sector level, stock selection in financials, industrials, utilities and consumer staples had a positive impact on performance. Underweight exposure to information technology also had a positive impact. Stock selection in materials, consumer discretionary, communication services and real estate had a negative impact, as did underweight exposure to materials.
Within the U.S., stock selection in information technology, consumer discretionary and communication services sectors had a positive impact on the Fund’s performance. Underweight exposure to information technology and overweight exposure to health care and financials also had a positive impact. Stock selection in financials, industrials and materials had a negative impact on performance. Lack of exposure to energy, utilities and real estate was also negative for performance.
In international equities, stock selection in health care, materials and consumer staples had a positive impact on the Fund’s performance. Underweight exposure to consumer discretionary also had a positive impact. Stock selection in energy and underweight exposure to financials had a negative impact on performance.
In fixed income, a short duration (lower sensitivity to interest rates) had a positive impact on the Fund’s performance amid rising yields. Yield curve positioning, with underweight exposure to five-year bonds, had a negative impact. Security selection among high-yield corporate bonds, hybrid securities and government bonds had a negative impact on performance. Overweight exposure to long-term provincial bonds was also negative for performance.
Portfolio activity
The sub-advisor added AltaGas Ltd. to the Fund and increased several holdings. These included The Campbell’s Co., Amgen Inc., Chubb Ltd., Westinghouse Air Brake Technologies Corp. and Merck & Co. Inc. The sub-advisor sold Kellanova, Biogen Inc. and Saputo Inc. Franco-Nevada Corp., Metro Inc., RB Global Inc., The Bank of Nova Scotia and Magna International Inc. were trimmed.
Outlook
Following years of strong returns in equity markets, a slowdown wasn’t entirely unexpected, in the sub-advisor’s view. However, the extent of the trade dispute took markets somewhat by surprise. The sub-advisor expects to see increased global equity market volatility amid uncertainty around U.S. trade policy. This is likely to be an evolving situation over several months or quarters.
As the trade dispute evolves, the sub-advisor continues to engage with company management teams, prioritizing those that may be more negatively affected by tariffs. The sub-advisor focuses these engagements on understanding management views of the potential impact of tariffs on their business and discussing various scenarios and mitigation strategies. Potential issues range from supply chain management and inflation to cost-cutting initiatives and consumer pricing. If there were a material change, the sub-advisor would review the holding.
Given heightened uncertainty in fixed income markets, the sub-advisor believes there is potential for elevated volatility in the coming year. As such, the Fund’s fixed income component is defensively positioned in higher-rated corporate bonds, particularly in less economically sensitive sectors. The sub-advisor expects interest rates should continue to fall over the long term, particularly in Canada. At the end of the quarter, the Fund had overweight exposure to the mid-term part of the yield curve.