Savings Fund

September 30, 2022

Market Context

  • Central banks reconfirmed their commitment to contain inflation in the quarter by further raising interest rates to slow economic growth.
  • The Bank of Canada raised its key lending rate by 1.0% in July (its largest single increase since 1998), and again by 0.75% in September, bringing the rate to 3.25%. Further, the Bank signaled further increases are to come. The U.S. Federal Reserve also increased its target rate on two occasions, by 0.75% each time, taking it to 3.25% as well. It’s expected that this restrictive monetary policy (i.e. higher rates) will remain in place until inflation moderates.
  • While higher interest rates have led to a sharp decline in bond prices this year, they have been welcomed by savers, who are now receiving a better yield on their cash.

Positioning

  • Corporate paper makes up 57% of the portfolio, while T-Bills comprise 43%.
  • Exposure to bank paper was modestly increased to help enhance the fund’s yield.
  • The pre-fee yield of the fund at the end of September was 3.8%.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Important information about the Steadyhand funds is contained in our Simplified Prospectus. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.