Savings Fund

March 31, 2021

Market Context

  • The Bank of Canada kept its key lending rate at 0.25% in the first quarter.
  • The global economy continues to recover at a healthy, albeit uneven pace. In its March statement the Bank of Canada noted that the economy is “proving to be more resilient than anticipated to the second wave of the virus and the associated containment measures ... Despite the stronger near-term outlook, [though] there is still considerable economic slack and a great deal of uncertainty about the evolution of the virus and the path of economic growth.”
  • The central bank is committed to providing extraordinary monetary policy support to aid in the recovery and will hold rates at extremely low levels, likely until 2023.

Positioning

  • The manager (Connor, Clark & Lunn) increased the fund’s exposure to provincial T-Bills, as their yields are now similar to corporate paper.
  • T-Bills comprise 51% of the portfolio while corporate paper makes up 49%.
  • The pre-fee yield of the fund at the end of March was 0.2%.

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.