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Analysis: This fund has been a dependable performer for many years; never sensational but decent, with steady returns. We didn’t expect the managerial change that took place in 2006 to alter that, however we note with some concern that the results since then have been sub-par. This is a conservative fund from a portfolio safety perspective, investing primarily in government or government-guaranteed issues. The corporate component, which represents 21.8% of the portfolio, is held in high-quality issues; only 6% of the bonds have a credit rating of less than A. The fund gained 2.9% in the year to June 30/07, slightly below average for the peer group. However, long-term results are marginally above average. Cash flow is on the weak side with monthly distributions of between 1c and 1.5c per unit. Trailing 12-month yield is 2.9%. The fund continues to be an okay choice in the AGF line-up but there are better bond funds out there.