July 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 July 31, 2026)
| Name | Percent |
|---|---|
| Domestic Bonds | 98.6 |
| Cash and Equivalents | 1.4 |
| Name | Percent |
|---|---|
| Canada | 99.2 |
| Other | 0.8 |
| Name | Percent |
|---|---|
| Fixed Income | 98.6 |
| Cash and Cash Equivalent | 1.4 |
Growth of $10,000 (since inception)
For the period 07/08/2013 through 07/31/2026 tr.with $10,000 CAD investment, The value of the investment would be $10,761
Fund details (as of July 31, 2026)
| Top holdings | Percent (%) |
|---|---|
| Canada Government 4.00% 01-Dec-2031 | 13.6 |
| Canada Government 1.50% 01-Dec-2044 | 12.9 |
| Canada Government 2.00% 01-Dec-2041 | 12.3 |
| Canada Government 1.25% 01-Dec-2047 | 11.3 |
| Canada Government 3.00% 01-Dec-2036 | 9.7 |
| Canada Government 0.50% 01-Dec-2050 | 8.9 |
| Canada Government 4.25% 01-Dec-2026 | 8.8 |
| Ontario Province 2.00% 01-Dec-2036 | 8.4 |
| Quebec Province 4.50% 01-Dec-2026 | 4.0 |
| Quebec Province 4.25% 01-Dec-2031 | 3.8 |
| Total allocation in top holdings | 93.7 |
| Portfolio characteristics | Value |
|---|---|
| Standard deviation | 7.76% |
| Dividend yield | - |
| Yield to maturity | 1.81% |
| Duration (years) | 11.19% |
| Coupon | 2.48% |
| Average credit rating | AA+ |
| Average market cap (million) | - |
Understanding returns
Annual compound returns (%)
| 1 MO | 3 MO | YTD | 1 YR |
|---|---|---|---|
| -1.96 | 1.74 | 2.12 | 1.71 |
| 3 YR | 5 YR | 10 YR | INCEPTION |
|---|---|---|---|
| 2.48 | -2.04 | -0.46 | 0.56 |
Calendar year returns (%)
| 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|
| -0.86 | 1.86 | 0.20 | -15.71 |
| 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|
| 0.08 | 10.61 | 6.16 | -1.82 |
Range of returns over five years (August 01, 2013 - July 31, 2026)
| Best return | Best period end date | Worst return | Worst period end date |
|---|---|---|---|
| 3.18% | Nov 2020 | -3.12% | Dec 2025 |
| Average return | % of periods with positive returns | Number of positive periods | Number of negative periods |
|---|---|---|---|
| -0.06% | 46 | 45 | 52 |
Q2 2026 Fund Commentary
Commentary and opinions are provided by Canada Life.
Market commentary
Headline inflation in Canada began moving higher during the second quarter because of rising oil prices, although core prices remained stable at roughly 2%. Volatility in the breakeven curve (the difference between the yields of nominal bonds and inflation-indexed bonds) was low for most of the quarter. A small uptick in the front end of the breakeven curve reflected the added pressure from higher oil prices on short-term inflation expectations.
Performance
An overweight allocation to provincial inflation-linked bonds was the largest contributor to performance. The sub-advisor has maintained this allocation because of the scarcity of the product and the additional yield it provides. Provincial inflation-linked bonds outperformed federal inflation-linked bonds over the quarter.
The underweight allocation to the Government of Canada (4.25% due 2026) also contributed to performance. This security underperformed both the federal sector and the overall index during the quarter.
Selection within provincial inflation-linked bonds detracted from performance. The sub-advisor holds an overweight allocation to Province of Quebec bonds, and these bonds underperformed the provincial inflation-linked bond sector during the quarter.
The Province of Quebec (4.25% due 2026) detracted from performance. The sub-advisor holds an overweight allocation to this security, and it underperformed the index during the quarter.
Portfolio activity
The sub-advisor decreased positions across the curve in response to client withdrawals. As a result, provincial exposure passively increased as withdrawals were completed using the Fund's federal holdings.
Outlook
The sub-advisor may continue to tactically manage the Fund's duration and positioning in line with its view on interest rates.
Summary
For the period 07/08/2013 through 07/31/2026 with $10,000 CAD investment
Total returns performance
7.61%
Last price
$10.76 CAD
as of market close 07/31/2026
Value of $10,000 investment
$10,760.67 CAD
