| Fund Company | TD Asset Management |
| Fund Type | Canadian Fixed Income |
| Rating | $$$$ |
| Style | Index |
| Risk Level | Low |
| Load Status | No Load |
| RRSP/RRIF Suitability | Excellent |
| TFSA Suitability | Excellent |
| Manager | Michelle Hegeman since 2008 |
| MER | 0.83% – Investor Series Units 0.51% – e-Series Units |
| Code | TDB 966 – Investor Series Units TDB 909 – e-Series Units |
| Minimum Investment | $100 |
Analysis: For cost conscious investors seeking exposure to the Canadian bond market, this mutual fund is a good choice. The fund is designed to track the DEX Universe Bond Index, after fees.
Like the index, the fund is approximately 57% invested in Government of Canada bonds and 42% in investment grade corporate bonds.
Given the lower fees charged by this fund, it is not surprising that it has consistently been in the first or second quartile in virtually every time period, with the exception of 2009, when the fund was in the third quartile. The fund pays a variable monthly distribution which has ranged between $0.02 and $0.04 per unit. At current prices, the annualized distribution yield on the investor series units is approximately 3.1%
The fund is available in a traditional investor series, which carries an MER of 0.83%, or it can be purchased directly online from TD with a low MER of 0.51%.
Despite the strong relative performance and distribution yield, given the expected environment for fixed income investments, we would favour the PH&N Bond, PH&N Total Return Bond or the TD Canadian Bond over this fund.