December 31, 2022

Market Context

• The Bank of Canada raised its key short-term lending rate seven times in 2022, from 0.25% to 4.25%. The increases were made to slow economic growth and curb inflation, which reached its highest level in 40 years, topping 8% in July. Overall prices have since come down slightly, but are still 7% higher than at this time last year.
  
• Central banks remain firmly committed to bringing inflation down, but there are indications that rate hikes may soon be nearing an end. The Bank of Canada surprised markets with a smaller than expected increase of 0.5% in October (as well as December) and noted that it is now considering whether rates need to rise further.
  
• 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 56% of the portfolio, while T-Bills comprise 44%.
  
• 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 December was 4.5%.
  

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.