January 31, 2026
A Canadian fixed-income fund that provides opportunities for moderate income generation as well as longer-term inflation protection.
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 Canadian real-return bonds issued by governments, 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 | 98.8 |
| Cash and Equivalents | 1.2 |
| Name | Percent |
|---|---|
| Canada | 99.3 |
| Other | 0.7 |
| Name | Percent |
|---|---|
| Fixed Income | 98.8 |
| Cash and Cash Equivalent | 1.2 |
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 $13,224
Fund details (as of January 31, 2026)
| Top holdings | Percent (%) |
|---|---|
| Canada Government 4.00% 01-Dec-2031 | 13.5 |
| Canada Government 1.50% 01-Dec-2044 | 13.0 |
| Canada Government 2.00% 01-Dec-2041 | 12.3 |
| Canada Government 1.25% 01-Dec-2047 | 11.5 |
| Canada Government 3.00% 01-Dec-2036 | 9.6 |
| Canada Government 0.50% 01-Dec-2050 | 9.1 |
| Canada Government 4.25% 01-Dec-2026 | 8.7 |
| Ontario Province 2.00% 01-Dec-2036 | 8.3 |
| Quebec Province 4.50% 01-Dec-2026 | 4.1 |
| Quebec Province 4.25% 01-Dec-2031 | 3.8 |
| Total allocation in top holdings | 93.9 |
| Portfolio characteristics | Value |
|---|---|
| Standard deviation | 7.68% |
| Dividend yield | - |
| Yield to maturity | 1.59% |
| Duration (years) | 11.68% |
| Coupon | 2.46% |
| Average credit rating | AA+ |
| Average market cap (million) | - |
Understanding returns
Annual compound returns (%)
| 1 MO | 3 MO | YTD | 1 YR |
|---|---|---|---|
| 0.52 | 0.85 | 0.52 | -1.16 |
| 3 YR | 5 YR | 10 YR | INCEPTION |
|---|---|---|---|
| 1.76 | -0.84 | 1.72 | 2.25 |
Calendar year returns (%)
| 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|
| 0.88 | 3.67 | 1.97 | -14.22 |
| 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|
| 1.86 | 12.59 | 8.06 | -0.03 |
Range of returns over five years (August 01, 2013 - January 31, 2026)
| Best return | Best period end date | Worst return | Worst period end date |
|---|---|---|---|
| 5.04% | Nov 2020 | -1.40% | Dec 2025 |
| Average return | % of periods with positive returns | Number of positive periods | Number of negative periods |
|---|---|---|---|
| 1.82% | 84 | 76 | 15 |
Q4 2025 Fund Commentary
Commentary and opinions are provided by Canada Life.
Market commentary
While headline inflation started to move lower during the fourth quarter of 2025, measures of core inflation remained at the higher end of the 1–3% target band. The breakeven curve remained flat, reflecting expectations that near-term inflation had returned to being in line with long-term expectations. Breakeven rates remained largely unchanged but increased slightly by the end of the year. This reflected concerns that inflation might be coming back into play, partly related to increased government deficits and associated issuance.
Performance
Overweight exposure to a real return bond issued by the Government of Canada (4% due 2031) contributed to the Fund’s performance. Underweight exposure to a real return bond issued by the Government of Canada (4.25% due 2026) detracted from performance.
Overweight exposure to provincial inflation-linked product contributed to the Fund’s performance. The sub-advisor holds the position because of the rarity of the product, and for the additional yield it provides. Security selection within provincial inflation-linked bonds detracted from performance. The Fund holds an overweight position in Province of Quebec bonds, which were the weakest performers.
Portfolio activity
The sub-advisor increased exposure to provincial bonds as withdrawals were completed using federal bond holdings. The Fund’s holdings were reduced across the yield curve in response to client withdrawals.
Outlook
The sub-advisor will continue to manage the Fund’s duration (sensitivity to interest rates) and positioning in conjunction with the view on interest rates. There are no large moves planned for the Fund due to lack of issuance in the product and reduced liquidity in the space.
Summary
For the period 07/08/2013 through 01/31/2026 with $10,000 CAD investment
Total returns performance
32.24%
Last price
$13.22 CAD
as of market close 01/31/2026
Value of $10,000 investment
$13,224.08 CAD
