Savings Fund

March 31, 2025

Market Context

• The Bank of Canada cut its key short-term lending rate twice in the first quarter, bringing it down from 3.25% to 2.75%.
  
• While the Canadian economy entered the year in a good position, with inflation close to the 2% target, the central bank noted that heightened trade tensions and tariffs imposed by the U.S. will impact economic activity and increase inflationary pressures. In this rapidly evolving landscape, the economic outlook is subject to higher-than-usual uncertainty.
  
• The Bank emphasized that it will carefully assess the timing and strength of the pressures from a weaker economy and higher costs to prevent ongoing inflation.
  

Positioning

• T-Bills comprise 75% of the portfolio, while corporate paper makes up 25%.
  
• We increased our weighting in corporate paper, which offer attractive yields.
  
• The pre-fee yield of the portfolio at the end of March was 2.8%.
  

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.