Savings Fund

December 31, 2024

Market Context

• The Bank of Canada cut its key short-term lending rate five times in 2024, from 5.0% to 3.25%. The U.S. Federal Reserve reduced its target interest rate by a total of 1.0% across three meetings. The Fed’s target range is now 4.25% to 4.5%.
  
• While our central bank has been quicker to lower rates, it signaled a more cautious approach at its final meeting this year, when Governor Tiff Macklem noted that rates are no longer in “clearly restrictive territory”. The Bank also believes, however, that the possibility of new tariffs on Canadian exports to the U.S. has clouded the economic outlook and increased uncertainty.
  
• As short-term interest rates have come down in Canada, investors should expect a lower return on money market investments. That said, yields are still attractive.
  

Positioning

• T-Bills comprise 73% of the portfolio, while corporate paper makes up 27%.
  
• We increased our weighting in provincial T-Bills in 2024, which offer attractive yields.
  
• The pre-fee yield of the portfolio at the end of December was 3.3%.
  

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.