Savings Fund

March 31, 2022

Market Context

  • The Bank of Canada raised its key lending rate in March for the first time since 2018, from 0.25% to 0.50%. The U.S. Federal Reserve also increased its target rate. Both central banks suggested several more hikes are to come by the end of the year.
  • The rate increases, which were widely telegraphed, were implemented to help combat surging inflation (which is currently above 5% in Canada) and pull back some of the stimulus that has helped prop up the economy throughout the pandemic.
  • The Bank of Canada is firm in its goal of bringing inflation back down to its 2% target, yet acknowledges that inflation is expected to be higher in the near term as a result of supply chain bottlenecks and the invasion of Ukraine, which is putting upward pressure on oil, gas, and food-related commodities.

Positioning

  • Corporate paper makes up 57% of the portfolio, while T-Bills comprise 43%.
  • The duration of the fund was increased slightly to take advantage of higher yields.
  • The pre-fee yield of the fund at the end of March was 0.8%.

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.