Savings Fund

March 31, 2019

Market Context

  • The Bank of Canada left its key lending rate unchanged in the quarter, at 1.75%.
  • In its March statement, the central bank indicated that the slowdown in the global economy has been more pronounced than expected, with trade tensions weighing heavily on confidence and economic activity. In Canada, the slowdown has been sharper and more broadly based than anticipated, with exports and business investment falling short of expectations.
  • Overall, the BoC feels the current outlook warrants a short-term interest rate that is still very accommodative of economic growth.

Positioning

  • The manager’s (Connor, Clark & Lunn) preference for corporate paper continued to add value for the fund in the first quarter. These securities, which include bank paper, floating rate notes and short-dated bonds, comprise 70% of the fund.
  • Investments in T-Bills remain focused on provincial securities (30% of the fund).
  • The pre-fee yield of the fund at the end of March was 2.0%.

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.