January 31, 2026
A Canadian fixed-income fund that invests in securities with a minimum A credit rating.
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. This fund focuses on mirroring the holdings of the Scotia Capital Markets Universe Bond Index.
- You're comfortable with a low level of risk.
RISK RATING
How is the fund invested? (as of January 31, 2026)
| Name | Percent |
|---|---|
| Domestic Bonds | 99.9 |
| Foreign Bonds | 0.2 |
| Other | -0.1 |
| Name | Percent |
|---|---|
| Canada | 99.9 |
| United States | 0.1 |
| Name | Percent |
|---|---|
| Fixed Income | 100.0 |
Growth of $10,000 (since inception)
For the period 05/14/2012 through 01/31/2026 tr.with $10,000 CAD investment, The value of the investment would be $11,248
Fund details (as of January 31, 2026)
| Top holdings | Percent (%) |
|---|---|
| Canada Government 3.25% 01-Dec-2035 | 2.3 |
| Canada Government 2.75% 01-Sep-2030 | 2.0 |
| Canada Government 3.00% 01-Feb-2027 | 1.6 |
| Canadian Government Bond 2.75% 01-Mar-2031 | 1.4 |
| Canada Government 3.25% 01-Jun-2035 | 1.4 |
| Canada Government 4.00% 01-Mar-2029 | 1.2 |
| Canada Government 3.25% 01-Dec-2034 | 1.2 |
| Canada Government 1.50% 01-Dec-2031 | 1.2 |
| Canada Government 3.50% 01-Sep-2029 | 1.2 |
| Canada Government 2.75% 01-Mar-2030 | 1.2 |
| Total allocation in top holdings | 14.7 |
| Portfolio characteristics | Value |
|---|---|
| Standard deviation | 5.29% |
| Dividend yield | - |
| Yield to maturity | 3.45% |
| Duration (years) | 7.00% |
| Coupon | 3.51% |
| Average credit rating | AA |
| Average market cap (million) | - |
Understanding returns
Annual compound returns (%)
| 1 MO | 3 MO | YTD | 1 YR |
|---|---|---|---|
| 0.45 | 1.74 | 0.45 | 0.47 |
| 3 YR | 5 YR | 10 YR | INCEPTION |
|---|---|---|---|
| 2.08 | -1.52 | 0.36 | 0.86 |
Calendar year returns (%)
| 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|
| 1.10 | 2.59 | 5.12 | -12.96 |
| 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|
| -4.04 | 6.91 | 5.19 | -0.06 |
Range of returns over five years (June 01, 2012 - January 31, 2026)
| Best return | Best period end date | Worst return | Worst period end date |
|---|---|---|---|
| 2.76% | Nov 2020 | -2.28% | Jul 2025 |
| Average return | % of periods with positive returns | Number of positive periods | Number of negative periods |
|---|---|---|---|
| 0.45% | 56 | 59 | 46 |
Q4 2025 Fund Commentary
Commentary and opinions are provided by TD Asset Management Inc..
Market commentary
In the fourth quarter of 2025, Canada experienced modest, below-trend growth, consistent with a gradual cooling rather than a sharp downturn. Economic momentum slowed as the effects of past interest rate hikes, softer population growth and more cautious consumer behaviour weighed on activity. Inflation remained close to the Bank of Canada’s (BoC) 2% target, allowing the policy focus to shift from aggressively containing price pressures toward supporting a still-fragile economic expansion.
The BoC held its policy interest rate steady at 2.25% in December after easing earlier in the second half of the year. With inflation broadly under control and growth subdued, policymakers emphasized the need to assess the effect of prior interest rate cuts.
Canadian fixed income markets were challenged by a broad-based rise in Government of Canada (GoC) yields, which weighed on price performance. Yields on two-year GoC bonds increased by nearly 12 basis points, while 30-year yields rose by 23 basis points. This resulted in a steepening of the yield curve.
Corporate bonds outperformed the broader market, supported by higher yield levels and resilient income carry. Credit spreads were stable, allowing corporate bonds to better absorb the impact of rising government yields.
Performance
The Fund is a passive index strategy designed to track the FTSE Canada Universe Bond Index, while excluding BBB-rated bonds at the time of purchase. During the quarter, a lack of BBB-rated bond holdings detracted from the Fund’s performance.
Portfolio activity
As a passive index strategy, the sub-advisor made no notable changes to the Fund during the quarter.
Outlook
The sub-advisor has a cautiously optimistic outlook. Growth is expected to remain modest into 2026, with risks skewed more toward slower activity than a renewed inflation surge. The BoC has signalled that future policy moves will be data-dependent, balancing inflation uncertainty against a gradually weakening Canadian labour market. In this setting, fixed income should offer attractive yields, diversification benefits and potential downside protection relative to riskier assets.
The BoC is likely to hold its policy interest rate steady and proceed with caution, balancing inflation uncertainty against a weakening labour market.
From a credit perspective, strong fundamentals and favourable technical conditions should support the Canadian corporate bond sector.
Summary
For the period 05/14/2012 through 01/31/2026 with $10,000 CAD investment
Total returns performance
12.48%
Last price
$11.25 CAD
as of market close 01/31/2026
Value of $10,000 investment
$11,247.78 CAD
