Savings Fund

June 30, 2024

Market Context

• The Bank of Canada cut its key short-term lending rate in the quarter by 0.25% (to 4.75%). It was the first G7 central bank to lower rates this cycle, although the European Central Bank followed shortly after. The U.S. Federal Reserve kept its policy rate unchanged, yet many economists expect a cut by the end of the year.
  
• Inflation has eased domestically and is close to the Bank of Canada’s target. Bank governor Tiff Macklem stated in his latest release that “monetary policy no longer needs to be as restrictive” and noted that further cuts can be expected — following a gradual, data-dependent approach — as long as inflation continues to ease.
  
• 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 58% of the portfolio, while corporate paper makes up 42%.
  
• We increased our weighting in T-Bills and decreased our holdings in corporate paper.
  
• The pre-fee yield of the portfolio at the end of June was 4.7%.
  

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.