Investment Objective
To generate interest income while minimizing the effects of interest-rate fluctuations. The fund invests in a portfolio composed mainly of fixed-rate Canadian bonds (either corporate, governmental or municipal) and/or preferred shares issued by North-American companies and enters into derivatives transactions to generate a floating rate of income. Floating-rate income can therefore be obtained by swapping, through the use of derivatives, the rate of a fixed-income security for the short-term floating rate in effect at the time of the swap less the fees payable to the counterparty in relation to the derivative transactions. The short-term floating rate used will correspond, depending on the securities covered, to the 3-month Canadian Dealer Offered Rate (CDOR) or the 3-month London Interbank Offered Rate (LIBOR). The derivatives will be entered into with counterparties having a designated rating. It is expected that investments in foreign securities will not exceed approximately 40% of the Fund's net assets.
Fund Details
Investment horizon
At least 1 year
Fund volatility
Low
Minimum Initial Investment:
$500
Subsequent Investment:
$50
Systematic Investment:
$25
Distribution Frequency:
Monthly
Assets Under Management ($M):
$148.8
Price per Unit:
$10.27
Inception Date:
January 8, 2014
Value of $10,000 over 10 years:
$14,536
Benchmark Index:
FTSE Can T-91
Management Fee:
0.55%
MER:
0.74%
Portfolio Manager:
National Bank Investments Inc.
Sub-Advisor:
Fiera Capital Corporation
Management Fee Reduction Plan¹
For High Net Worth investors
Amount Applicable
| Level | to the level* | Reduction |
|---|---|---|
| 1 | First $250,000 | 0.050% |
| 2 | Next $250,000 | 0.100% |
| 3 | In excess of $500,000 | 0.150% |
¹ Subject to satisfying one of the Plan admissibility criteria.
* The levels apply according to the market value of the assets.
Available Fund Codes:
| Advisor Series | |
|---|---|
| Initial Sales Charge | NBC429 |
| Deferred Sales Charge | NBC529 |
| Low Sales Charge | NBC629 |
| Advisor_2 Series | |
| Deferred Sales Charge | NBC6529 |
| Low Sales Charge | NBC6629 |
| F Series | NBC729 |
| Investor_2 Series | |
| Low Sales Charge | NBC6829 |
| O Series | NBC329 |
| T Series | |
| Initial Sales Charge | NBC5429 |
| Deferred Sales Charge | NBC5529 |
| Low Sales Charge | NBC5629 |
| T_2 Series | |
| Initial Sales Charge | NBC6429 |
Portfolio Asset Mix (% of Net Assets)
| Cdn Corp Bonds - Invest Grade | 50.42% |
| Cdn Corp Bonds - Other | 28.03% |
| Canadian Preferred Shares | 9.11% |
| Cash and Equivalents | 6.36% |
| Canadian high yield bonds | 3.40% |
| Bonds - Other | 2.05% |
| Foreign Corp Bonds - Invest Gr | 0.63% |
| Average Duration (Years) | 1.66 |
| Average Maturity (Years) | 1.39 |
| Gross Yield to Maturity (%)† | 3.85 |
| Gross Current Yield (%)‡ | 4.30 |
| Top Holdings | % |
|---|---|
| Rogers Communications Inc 3.65% 31-Jan-2027 | 1.65 |
| Crombie REIT 3.68% 26-Aug-2026 | 1.59 |
| Bank of America Corp 3.62% 16-Mar-2027 | 1.44 |
| Bank of Nova Scotia 4.68% 01-Feb-2029 | 1.41 |
| SmartCentres REIT 3.44% 28-Aug-2026 | 1.24 |
| Sun Life Financial Inc 2.58% 10-May-2027 | 1.24 |
| IGM Financial Inc 3.44% 26-Jan-2027 | 1.22 |
| Transcanada Pipelines Ltd 3.80% 05-Feb-2027 | 1.15 |
| iA Financial Corp Inc 3.07% 24-Sep-2031 | 1.12 |
| Toronto-Dominion Bank 2.26% 07-Jan-2027 | 1.07 |
| Total of Top Holdings of the Fund (% of Net Assets): |
13.13 |
| Total Number of Securities Held: | 300 |
| Allocation by Maturity | % |
|---|---|
| Short Term | 70.12 |
| Mid Term | 23.29 |
| Long Term | 6.59 |
Calendar Returns (%)
| YTD | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|---|
| 4.93 | 10.51 | 7.29 | -4.20 | 5.29 | 3.14 | 4.62 |
Annualized Returns (%)
| 1 M | 3 M | 6 M | 1 Y | 3 Y | 5 Y | 10 Y | Incp. |
|---|---|---|---|---|---|---|---|
| 0.53 | 1.47 | 4.32 | 6.62 | 7.96 | 5.32 | 3.81 | 3.18 |
The FundGrade A+® rating is used with permission from Fundata Canada Inc., all rights reserved. Fundata is a leading provider of market and investment funds data to the Canadian financial services industry and business media. The Fund-Grade A+® rating identifies funds that have consistently demonstrated the best risk-adjusted returns throughout an entire calendar year. For more information on the rating system, please visit www.Fundata.com/ProductsServices/FundGrade.aspx.
†The rate of return anticipated on a bond if it is held until the maturity date expressed as an annual rate. It is assumed that all coupons are reinvested at the same rate.
‡Annual income paid by a bond or a stock, expressed as a percentage of its current market price. It does not include any capital gains or losses that may be realized upon maturity.