Savings Fund

September 30, 2024

Market Context

• The Bank of Canada cut its key short-term lending rate twice in the quarter, by 0.25% each time, bringing it down to 4.25%.
  
• Economic activity softened in the summer and the labour market continued to slow, although wage growth held steady. Inflation eased further, to roughly 2.5%. Higher shelter prices remain the biggest contributor to total inflation, but this measure is starting to slow as well. Against this backdrop, the Bank of Canada feels that easier monetary conditions are appropriate. The Governing Council has emphasized that the Bank remains resolute in its commitment to restoring price stability.
  
• 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 72% of the portfolio, while corporate paper makes up 28%.
  
• We increased our weighting in provincial T-Bills, which offer attractive yields.
  
• The pre-fee yield of the portfolio at the end of September was 4.0%.
  

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.