July 31, 2026
A Canadian fund seeking interest income and growth potential while also trying to reduce volatility by investing in shorter-term bonds.
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 or government-guaranteed instruments with credit ratings of A or higher.
- You're comfortable with a low level of risk.
RISK RATING
How is the fund invested? (as of July 31, 2026)
| Name | Percent |
|---|---|
| Domestic Bonds | 96.6 |
| Cash and Equivalents | 3.4 |
| Name | Percent |
|---|---|
| Canada | 100.0 |
| Name | Percent |
|---|---|
| Fixed Income | 96.6 |
| Cash and Cash Equivalent | 3.4 |
Growth of $10,000 (since inception)
For the period 10/05/2009 through 07/31/2026 tr.with $10,000 CAD investment, The value of the investment would be $10,629
Fund details (as of July 31, 2026)
| Top holdings | Percent (%) |
|---|---|
| Province of Ontario 3.90% 06-02-2036 | 14.6 |
| Canada Housing Trust No 1 3.10% 15-Jun-2028 | 11.9 |
| Canada Housing Trust No 1 2.90% 15-Dec-2029 | 11.8 |
| Canada Government 1.50% 01-Jun-2031 | 10.7 |
| Canada Government 3.25% 01-Sep-2028 | 8.8 |
| Canada Government 4.00% 01-Mar-2029 | 8.4 |
| Alberta Province 2.05% 01-Jun-2030 | 5.1 |
| Quebec Province 2.75% 01-Sep-2027 | 4.8 |
| Canada Housing Trust No 1 1.90% 15-Sep-2026 | 3.5 |
| Cash and Cash Equivalents | 3.4 |
| Total allocation in top holdings | 83.0 |
| Portfolio characteristics | Value |
|---|---|
| Standard deviation | 2.60% |
| Dividend yield | - |
| Yield to maturity | 3.04% |
| Duration (years) | 2.63% |
| Coupon | 2.82% |
| Average credit rating | AA |
| Average market cap (million) | - |
Understanding returns
Annual compound returns (%)
| 1 MO | 3 MO | YTD | 1 YR |
|---|---|---|---|
| -0.75 | -0.40 | -0.11 | 0.81 |
| 3 YR | 5 YR | 10 YR | INCEPTION |
|---|---|---|---|
| 2.59 | 0.37 | 0.04 | 0.36 |
Calendar year returns (%)
| 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|
| 1.54 | 2.62 | 3.71 | -4.58 |
| 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|
| -2.76 | 3.77 | 0.68 | -0.12 |
Range of returns over five years (November 01, 2009 - July 31, 2026)
| Best return | Best period end date | Worst return | Worst period end date |
|---|---|---|---|
| 1.42% | Mar 2015 | -0.95% | May 2022 |
| Average return | % of periods with positive returns | Number of positive periods | Number of negative periods |
|---|---|---|---|
| -0.02% | 40 | 57 | 85 |
Q2 2026 Fund Commentary
Commentary and opinions are provided by Mackenzie Investments.
Market commentary
Canada’s economy stayed under pressure in the second quarter as trade uncertainty continued to weigh on business confidence, though the labour market showed signs of stabilizing. Employment picked up in May, and the unemployment rate eased to 6.6%. Inflation accelerated, with the annual pace rising to 3.2% in May from 2.8% in April, as higher gasoline prices linked to the conflict in the Middle East pushed up energy costs. Core inflation measures held closer to 2%.
The Bank of Canada (BoC) held its policy rate at 2.25% at both its April and June meetings, its fourth and fifth consecutive holds. The BoC said it was looking through the temporary effect of higher energy prices while watching for signs that price pressures were becoming more persistent, and it pointed to risks on both sides from the trade dispute with the U.S. and the energy shock.
The Canadian fixed income market rose over the second quarter. The yield on the 10-year Government of Canada bond eased late in the period, falling below 3.40% by late June, its lowest level in more than three months, as contained core inflation supported expectations that the BoC would leave rates unchanged. Government bond prices firmed as yields declined. Corporate bonds were broadly stable, and energy-sector issuers benefited from firm oil prices early in the quarter. High-yield bond prices were choppy but finished the quarter higher.
Performance
Provincial bond exposure contributed to performance. Province of Ontario (3.9%, 2036/06/02) contributed to performance through its higher coupon and yield advantage over federal bonds. It also benefited from its duration (interest rate sensitivity) as Canadian interest rates eased. Ontario’s diversified economy and established market access also supported investor demand despite elevated borrowing requirements.
The Fund’s federal bond exposure detracted from performance. Canada Housing Trust No. 1 (3.1%, 2028/06/15) detracted from performance because of its shorter duration. Its high credit quality limited risk but also left less scope for price appreciation.
Portfolio activity
Canada Housing Trust No. 1 (1.9%, 2026/09/15) was reduced to meet the Fund’s liquidity needs. The bond remains a high-quality federal agency instrument backed by government-guaranteed residential mortgage assets.
Summary
For the period 10/05/2009 through 07/31/2026 with $10,000 CAD investment
Total returns performance
6.29%
Last price
$10.63 CAD
as of market close 07/31/2026
Value of $10,000 investment
$10,629.16 CAD
