January 31, 2026
A Canadian fixed-income fund that provides an opportunity for income generation over the longer term.
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 long-term Canadian government and corporate fixed-income securities, with some exposure to foreign fixed-income securities.
- You're comfortable with a low to moderate level of risk.
RISK RATING
How is the fund invested? (as of January 31, 2026)
| Name | Percent |
|---|---|
| Domestic Bonds | 98.6 |
| Cash and Equivalents | 1.1 |
| Foreign Bonds | 0.4 |
| Other | -0.1 |
| Name | Percent |
|---|---|
| Canada | 99.6 |
| Other | 0.4 |
| Name | Percent |
|---|---|
| Fixed Income | 98.9 |
| Cash and Cash Equivalent | 1.1 |
Growth of $10,000 (since inception)
For the period 07/08/2013 through 01/31/2026 tr.with $10,000 CAD investment, The value of the investment would be $10,974
Fund details (as of January 31, 2026)
| Top holdings | Percent (%) |
|---|---|
| Canada Government 2.00% 01-Dec-2051 | 3.3 |
| Canada Government 3.50% 01-Dec-2057 | 3.3 |
| Canada Government 2.75% 01-Dec-2055 | 3.0 |
| Quebec Province 4.40% 01-Dec-2055 | 2.5 |
| Canada Government 1.75% 01-Dec-2053 | 2.4 |
| Ontario Province 4.60% 02-Jun-2039 | 2.0 |
| Ontario Province 3.45% 02-Jun-2045 | 1.8 |
| Ontario Province 2.90% 02-Dec-2046 | 1.7 |
| Ontario Province 3.75% 02-Dec-2053 | 1.7 |
| Ontario Province 2.65% 02-Dec-2050 | 1.6 |
| Total allocation in top holdings | 23.3 |
| Portfolio characteristics | Value |
|---|---|
| Standard deviation | 10.27% |
| Dividend yield | - |
| Yield to maturity | 4.44% |
| Duration (years) | 14.61% |
| Coupon | 3.77% |
| Average credit rating | AA |
| Average market cap (million) | - |
Understanding returns
Annual compound returns (%)
| 1 MO | 3 MO | YTD | 1 YR |
|---|---|---|---|
| 0.66 | 1.69 | 0.66 | -3.07 |
| 3 YR | 5 YR | 10 YR | INCEPTION |
|---|---|---|---|
| 0.00 | -4.70 | -0.36 | 0.74 |
Calendar year returns (%)
| 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|
| -2.58 | -0.36 | 7.75 | -22.97 |
| 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|
| -6.15 | 9.96 | 10.70 | -1.72 |
Range of returns over five years (August 01, 2013 - January 31, 2026)
| Best return | Best period end date | Worst return | Worst period end date |
|---|---|---|---|
| 5.22% | Nov 2020 | -6.09% | Jul 2025 |
| Average return | % of periods with positive returns | Number of positive periods | Number of negative periods |
|---|---|---|---|
| 0.06% | 49 | 45 | 46 |
Q4 2025 Fund Commentary
Commentary and opinions are provided by Canada Life.
Market commentary
In the fourth quarter of 2025, bond yields rose because of better-than-expected economic results. Gross domestic product came in better than expected, inflation moderated and employment was stronger than expected. There was limited economic data from the U.S. due to the 43-day U.S. government shutdown in the fall of 2025.
The Bank of Canada (BoC) cut its overnight lending rate in October and left the rate at 2.25% in December. Despite the government shutdown in the U.S., the U.S. Federal Reserve Board (Fed) opted to cut interest rates, bringing its federal funds rate down to 3.75% by year-end . Both headline and core Consumer Price Index rates have started to decline, but both remain higher than the Fed’s 1–3% target band.
Performance
Underweight exposure to Province of Quebec (2.85%, due 2053) bonds contributed to the Fund’s performance. Overweight exposure to PSP Capital Inc. (4.25%, due 2055) bonds detracted from performance. Both bonds returned weak performance.
Overweight exposure to corporate and municipal bonds and underweight exposure to federal bonds contributed to the Fund’s performance. Federal bonds were the weakest performers during the quarter. Longer duration (interest rate sensitivity) than the benchmark detracted from the Fund’s performance, particularly in December, when interest rates rose.
Portfolio activity
A 30-year new issue from TransCanada PipeLines Ltd. was added to the Fund. The pipeline sub-sector saw strong performance compared to other energy sub-sectors. Adding this bond to the Fund’s holdings helped the sub-advisor take advantage of this outperformance. Longer-term provincial bonds, including those issued by Alberta, British Columbia and Ontario, were increased as corporate bond spreads were narrow.
Corporate holdings in the infrastructure space that were no longer index-eligible were sold, replaced with longer-dated assets. Exposure to Metro Inc. bonds was reduced to take advantage of spread performance.
Outlook
Going forward, the market expects the BoC to increase interest rates late in 2026 with a 0.25% hike priced in. The Fed is expected to make two additional cuts of 0.25% each to its federal funds rate in the first half of the year.
Although in the near term the sub-advisor doesn’t expect bond spreads to widen, there is also limited room for corporate spreads to narrow. The sub-advisor has reduced the Fund’s overweight allocation slightly, providing room for additional purchases at more attractive spread levels.
The sub-advisor sees the potential for yield curve flattening into the first quarter of 2026 and is migrating the Fund’s portfolio to benefit from that movement in the yield curve. Issuance of government-related debt will be monitored to determine what impacts there will be on the yield curve.
Summary
For the period 07/08/2013 through 01/31/2026 with $10,000 CAD investment
Total returns performance
9.74%
Last price
$10.97 CAD
as of market close 01/31/2026
Value of $10,000 investment
$10,973.83 CAD
