Quarterly Aviator Portfolios update

What happened in financial markets during Q3 2021

Stock and bond markets
Index Close Q3 YTD
S&P/TSX Composite 20,070.25 -0.47% 15.13%
Dow Jones Industrial Average 33,843.92 -1.91% 10.58%
S&P 500 Index 4,307.54 0.23% 14.68%
NASDAQ Composite 14,448.58 -0.38% 12.11%
10-year GoC Yield 1.51% 0.12% 0.84%
10-year US Treasury Yield 1.52% 0.07% 0.59%
WTI Crude Oil US$/bbl 75.03 2.12% 54.64%
Canadian Dollar US$0.7849 -2.71% -0.06%
Bank of Canada Prime Rate 2.45%

Performance ending September 30, 2021. Sources bloomberg.com, bankofcanada.ca and treasury.gov.


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How did Aviator Portfolios perform during Q3 2021?

In Q3, most underlying funds generated neutral returns. The Cooperators Preferred Share Equity Fund and the Cooperators Fidelity Global Real Estate Fund made the strongest contributions across the portfolios. Exposure to emerging markets weighed on overall returns.

Rates of return for each portfolio are provided on an afterfees net basis. Given that fees are only applied at the portfolio level, all references to underlying fund performance are before fees gross.

Cooperators Aviator Income Plus Portfolio low risk

Designed to achieve interest income, and preservation and moderate growth of capital, with low levels of volatility.

Overall performance was positive in Q3. Strong contributions from the Cooperators Preferred Share Equity Fund – and, to a lesser degree, the Cooperators Bissett Canadian Equity Fund and the Cooperators Franklin High Income Fund – provided an effective counterweight to the fixedincome assets, which negatively impacted the portfolio.

Investment Segmentation

  • Canadian Fixed Income 60.98%
  • Canadian Equity 16.53%
  • Foreign Fixed Income 10.01%
  • Cash & Other Net Assets 5.39%
  • US Equity 4.31%
  • International Equity 2.78%
Rates of Return
Series 100
Guarantee Level Q3 YTD 1 year Since inception
December 2, 2019
7575 0.04% 1.09% 3.62% 3.95%
75100 0.00% 0.96% 3.45% 3.75%
Rates of Return
Series 500
Guarantee Level Q3 YTD 1 year 3 year Since inception
October 2, 2017
7575 0.09% 1.25% 3.85% 3.93% 3.25%
75100 0.05% 1.13% 3.68% 3.76% 3.09%

Top 10 holdings

  • Cooperators Corporate Bond Fund
    24.99%
  • Cooperators Canadian Fixed Income Fund
    19.94%
  • Cooperators Commercial Mortgage Fund
    15.09%
  • Cooperators Preferred Share Equity Fund
    10.18%
  • Cooperators Global Equity Fund
    7.32%
  • Cooperators Bissett Short Duration Bond Fund
    5.03%
  • Cooperators Franklin High Income Fund
    5.02%
  • Cooperators Bissett Canadian Equity Fund
    4.98%
  • Cooperators Templeton Global Bond Fund
    4.98%
  • Cooperators Concentrated Canadian Equity Fund
    2.47%

The top 10 investments make up 100.00% of the fund.

Total number of investments 10

Cooperators Aviator Diversified Portfolio low to moderate risk

Designed to achieve both interest income and capital growth, with modest levels of volatility.

The Cooperators Preferred Share Equity Fund provided the most upside in Q3, with the Cooperators Bissett Canadian Equity Fund, the Cooperators Franklin High Income Fund and the Cooperators Fidelity Global Real Estate Fund also adding value. Exposure to emerging markets significantly detracted from the portfolio’s overall performance.

Investment Segmentation

  • Canadian Equity 28.89%
  • Canadian Fixed Income 28.60%
  • US Equity 17.21%
  • Foreign Fixed Income 10.59%
  • International Equity 8.92%
  • Cash & Other Net Assets 5.79%
Rates of Return
Series 100
Guarantee Level Q3 YTD 1 year Since inception
December 2, 2019
75-75 -0.07% 6.37% 12.81% 7.05%
75-100 -0.11% 6.24% 12.62% 6.79%
Rates of Return
Series 500
Guarantee Level Q3 YTD 1 year 3 year Since inception
October 2, 2017
75-75 -0.01% 6.54% 13.05% 5.17% 4.75%
75-100 -0.05% 6.41% 12.87% 5.00% 4.57%

Top 10 holdings

  • Cooperators Canadian Fixed Income Fund
    17.55%
  • Cooperators Commercial Mortgage Fund
    12.65%
  • Cooperators Concentrated Canadian Equity Fund
    12.41%
  • Cooperators Global Equity Fund
    12.27%
  • Cooperators Preferred Share Equity Fund
    10.24%
  • Cooperators Franklin High Income Fund
    7.57%
  • Cooperators Bissett Canadian Equity Fund
    7.52%
  • Cooperators SmallCap US Equity Index Fund
    7.43%
  • Cooperators Templeton Global Bond Fund
    5.01%
  • Cooperators Fidelity Global Real Estate Fund
    4.87%

The top 10 investments make up 97.52% of the fund.

Total number of investments 11

Cooperators Aviator Growth Portfolio moderate risk

Designed to achieve longterm capital growth, with some interest income.

A strong thirdquarter performance from the Cooperators Fidelity Global Real Estate Fund was the largest contributor to the portfolio’s returns. The Cooperators Bissett Canadian Equity Fund, the Cooperators Franklin High Income Fund and the Cooperators Preferred Share Equity Fund also contributed to the overall performance. The portfolio’s modest weighting toward emerging markets negatively impacted returns.

Investment Segmentation

  • Canadian Equity 29.83%
  • US Equity 25.30%
  • International Equity 13.73%
  • Canadian Fixed Income 12.86%
  • Foreign Fixed Income 12.71%
  • Cash & Other Net Assets 5.57%
Rates of Return
Series 100
Guarantee Level Q3 YTD 1 year Since inception
December 2, 2019
7575 -0.01% 8.68% 16.85% 7.88%
75100 -0.05% 8.54% 16.65% 7.58%
Rates of Return
Series 500
Guarantee Level Q3 YTD 1 year 3 year Since inception
October 2, 2017
7575 0.05% 8.86% 17.10% 5.16% 5.01%
75100 0.01% 8.72% 16.91% 5.00% 4.84%

Top 10 holdings

  • Cooperators Global Equity Fund
    17.23%
  • Cooperators Concentrated Canadian Equity Fund
    12.95%
  • Cooperators Franklin High Income Fund
    10.14%
  • Cooperators Bissett Canadian Equity Fund
    10.06%
  • Cooperators SmallCap US Equity Index Fund
    9.94%
  • Cooperators Fidelity Global Real Estate Fund
    9.78%
  • Cooperators Commercial Mortgage Fund
    8.63%
  • Cooperators Preferred Share Equity Fund
    7.71%
  • Cooperators Corporate Bond Fund
    5.05%
  • Cooperators Templeton Global Bond Fund
    5.03%

The top 10 investments make up 96.52% of the fund.

Total number of investments 11

Key takeaways

Financial markets stalled in Q3, as COVID19 and the rise of the Delta variant renewed apprehension around the world. Some governments reimposed pandemic restrictions, adding to market anxiety.

Concern about rising inflation siphoned off some of the optimism around the pace of economic recovery that had built up during the first half of the year. Consumer prices in the US jumped more than 5% through the threemonth period ending September 30. In Canada, July’s inflation reading hit its highest level since May 2011.

Remember that volatility is a normal part of investing. Our fund managers are equipped with sound strategies and take an approach that is designed to outlast downturns in the market. Your segregated funds are built and managed to withstand fluctuations over the long term.

For more resources and financialmarket news, visit Market View.

Sales charges, expenses, and other fees

It’s important to note that fees and expenses reduce the return on your investment. For details, refer to your Policy and Information Folder.

Current rates of return are available on our Segregated fund performance page. Your personal rate of return will vary, depending on the contributions and withdrawals you make over time. For details, refer to your Policy Statement.

If you have questions about your investments, contact your financial representative.

Aviator Portfolios your secure and diversified investment option

Cooperators Aviator Portfolios are expertly designed and constructed by the highly regarded investment managers at Addenda Capital and Franklin Templeton and provide investors with broader diversification opportunities.

Each of the three distinct Aviator Portfolios funds brings an opportunity to invest your hardearned savings alongside some of Canada’s largest institutional clients, including pension funds, foundations, endowments, governments and corporations.

Aviator Portfolios provides both regional and riskexposure diversification, including exposure to unique asset classes, such as commercial mortgages, preferred shares and highyield bonds, all of which behave differently than stocks.



ABOUT THIS UPDATE The commentary in this report is based on current market conditions and market media sources available to the public and may change without warning at any time. The forecasts provided herein are not guarantees of future performance and include risks, uncertainty and assumptions. While Cooperators Life Insurance Company Cooperators believe these assumptions are reasonable, there is no guarantee they will be confirmed. This report is not a guarantee of future investment performance, nor should undue reliance be placed on this report. This report is provided as a general source of information for a specific point in time and should not be considered solicitation to buy or sell any investment. Nothing contained in this report constitutes investment, legal, tax or other advice. The content in this report should not be relied upon in making an investment or other decision, and individuals should obtain relevant and specific professional advice and read the terms and conditions contained in the relevant offering documents carefully before any investment decision is made. The Cooperators is not responsible for any loss or damage as a result of reliance on the information contained in this report. The Cooperators makes no representations or warranties as to the information contained herein and does not guarantee its accuracy, timeliness, completeness or usefulness. The Cooperators is committed to protecting the privacy, confidentiality, accuracy and security of the personal information that we collect, use, retain and disclose in the course of conducting our business. Please visit cooperators.ca/privacy for more information. The Cooperators®, A Better Place For You®, Aviator Portfolios®, and Cooperators Aviator® are registered trademarks of The Cooperators Group Limited. Addenda Capital® is a registered trademark of Addenda Capital Inc. and is used with permission. Franklin, Templeton, Franklin Bissett and Franklin Templeton® are registered trademarks of Franklin Templeton Investments Corp. and are used with permission. Aviator Portfolios® and Cooperators Aviator® are investment products offered by Cooperators Life Insurance Company, which may include features or options such as segregated funds, portfolios of segregated funds or guaranteed rates. Guaranteed benefits are payable upon death or upon maturity of funds. No guarantee is provided upon surrender or partial withdrawal of segregated fund units. Segregated funds and annuities are underwritten and administered by Cooperators Life Insurance Company. Not all products are available in all provinces.

If you have questions or want to discuss your investments, please contact your financial representative. In the province of Quebec, the authorized representatives are Financial Security Advisors who have been duly certified by the Autorité des marchés financiers.

Returns, investment segmentation and top holdings as of September 30, 2021. Rates of return for periods less than one year are simple rates of return. All others are annualized rates of return. Securities regulations do not allow us to report performance for a fund that has been available for less than one year. The returns reflect changes in unit value and assume that all income/realized net gains are retained by the segregated fund in the periods indicated and are reflected in higher unit values of the fund. The returns do not take into account sales, redemption, distribution or other optional charges or income taxes payable that would have reduced returns or performance. Past performance of any fund is not necessarily indicative of its future performance.

ANY AMOUNT THAT IS ALLOCATED TO A SEGREGATED FUND IS INVESTED AT THE RISK OF THE CONTRACT HOLDERS AND MAY INCREASE OR DECREASE IN VALUE.