What happened in financial markets during Q1 2021


Stock and bond markets*
INDEX CLOSE Q1
S&P/TSX Composite 18,700.67 7.27%
Dow Jones Industrial Average 32,981.55 7.76%
S&P 500 Index 3,972.89 5.77%
NASDAQ Composite 13,246.87 2.78%
10-yr GoC Yield 1.55% 0.88%
10-yr U.S. Treasury Yield 1.74% 0.81%
WTI Crude Oil (US$/bbl) 59.16 21.93%
Canadian Dollar US$0.7952 1.25%
Bank of Canada Prime Rate 2.45%

*Performance ending March 31, 2021. Sources: www.bloomberg.com, www.bankofcanada.ca and www.treasury.gov.


Read our latest investment update for information on the financial markets, special reports, and more.

How did Aviator Portfolios® perform during Q1 2021?

Q1 2021 saw equities significantly outperform fixed income. Allocations to fixed-income funds generated negative returns and detracted from performance across the portfolios, while exposure to equity funds – Canadian equities, in particular – was favourable to overall returns. The Co-operators Preferred Share Equity Fund was the largest contributor to each portfolio’s positive return. Below is a breakdown of our portfolio funds, their construction, and their performance in the first quarter.

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

Co-operators Aviator® Income Plus Portfolio: Low-risk portfolio

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

Overall portfolio performance was negative in Q1, due to its heavy weighting toward fixed income, which generated significant negative returns. Positive contributions from the Co-operators Preferred Share Equity Fund and the Co-operators Bissett Canadian Equity Fund helped to offset weaker performance from within the portfolio.

Rates of Return
Series 100
Guarantee Level Q1 1 Year Since Inception
(Dec. 2, 2019)
75-75 -0.80% 12.24% 4.00%
75-100 -0.84% 12.06% 3.79%
Rates of Return
Series 500
Guarantee Level Q1 1 Year 3 Year Since Inception
(Oct. 2, 2017)
75-75 -0.75% 12.49% 3.25% 3.14%
75-100 -0.79% 12.30% 3.08% 2.97%

Investment Segmentation

  • Canadian Fixed Income 61.33%
  • Canadian Equity 18.05%
  • Foreign Fixed Income 8.36%
  • Cash & Other Net Assets 6.37%
  • U.S. Equity 3.61%
  • International Equity 2.28%

Top 10 Holdings

  • Co-operators Corporate Bond Fund
    25.02%
  • Co-operators Canadian Fixed Income Fund
    20.01%
  • Co-operators Commercial Mortgage Fund
    15.02%
  • Co-operators Preferred Share Equity Fund
    12.50%
  • Co-operators Global Equity Fund
    6.22%
  • Co-operators Franklin High Income Fund
    5.01%
  • Co-operators Bissett Short Duration Bond Fund
    5.00%
  • Co-operators Bissett Canadian Equity Fund
    4.99%
  • Co-operators Templeton Global Bond Fund
    4.98%
  • Co-operators Concentrated Canadian Equity Fund
    1.25%

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

Total number of investments: 10

Co-operators Aviator® Diversified Portfolio: Low- to moderate-risk portfolio

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

In Q1, the Co-operators Preferred Share Equity Fund was the largest contributor to the portfolio's overall positive return. The Co-operators Small-Cap U.S. Equity Index Fund, the Co-operators Concentrated Canadian Equity Fund and the Co-operators Bissett Canadian Equity Fund also made strong contributions, helping to offset weaker performance from the fixed-income segment.

Rates of Return
Series 100
Guarantee Level Q1 1 Year Since Inception
(Dec. 2, 2019)
75-75 3.11% 25.27% 7.29%
75-100 3.07% 25.06% 7.00%
Rates of Return
Series 500
Guarantee Level Q1 1 Year 3 Year Since Inception
(Oct. 2, 2017)
75-75 3.17% 25.54% 4.73% 4.48%
75-100 3.12% 25.34% 4.56% 4.30%

Investment Segmentation

  • Canadian Equity 29.60%
  • Canadian Fixed Income 27.75%
  • U.S. Equity 16.66%
  • Foreign Fixed Income 8.97%
  • International Equity 8.54%
  • Cash & Other Net Assets 8.48%

Top 10 Holdings

  • Co-operators Preferred Share Equity Fund
    15.00%
  • Co-operators Commercial Mortgage Fund
    11.27%
  • Co-operators Global Equity Fund
    11.20%
  • Co-operators Concentrated Canadian Equity Fund
    10.02%
  • Co-operators Corporate Bond Fund
    8.76%
  • Co-operators Canadian Fixed Income Fund
    8.76%
  • Co-operators Small-Cap U.S. Equity Index Fund
    7.58%
  • Co-operators Franklin High Income Fund
    7.51%
  • Co-operators Bissett Canadian Equity Fund
    7.48%
  • Co-operators Templeton Global Bond Fund
    4.99%

The top 10 investments make up 92.57% of the fund.

Total number of investments: 12

Co-operators Aviator® Growth Portfolio: Moderate-risk portfolio

Designed to achieve long-term capital growth, with some interest income.

The portfolio benefited from its heavy allocation toward equities. A particularly strong performance from the Co-operators Preferred Share Equity Fund – and, to lesser extents, the Co-operators Bissett Canadian Equity Fund and the Co-operators Concentrated Canadian Equity Fund – contributed returns that exceeded the portfolio’s positive return in Q1.

Rates of Return
Series 100
Guarantee Level Q1 1 Year Since Inception
(Dec. 2, 2019)
75-75 4.73% 30.44% 7.96%
75-100 4.69% 30.15% 7.62%
Rates of Return
Series 500
Guarantee Level Q1 1 Year 3 Year Since Inception
(Oct. 2, 2017)
75-75 4.79% 30.65% 4.83% 4.60%
75-100 4.74% 30.43% 4.67% 4.43%

Investment Segmentation

  • Canadian Equity 32.16%
  • U.S. Equity 24.73%
  • International Equity 13.41%
  • Foreign Fixed Income 11.00%
  • Canadian Fixed Income 9.76%
  • Cash & Other Net Assets 8.94%

Top 10 Holdings

  • Co-operators Global Equity Fund
    16.19%
  • Co-operators Preferred Share Equity Fund
    13.77%
  • Co-operators Concentrated Canadian Equity Fund
    11.54%
  • Co-operators Small-Cap U.S. Equity Index Fund
    10.11%
  • Co-operators Franklin High Income Fund
    10.02%
  • Co-operators Bissett Canadian Equity Fund
    9.98%
  • Co-operators Fidelity Global Real Estate Fund
    9.89%
  • Co-operators Commercial Mortgage Fund
    7.52%
  • Co-operators Templeton Global Bond Fund
    4.99%
  • Co-operators Templeton Emerging Markets Fund
    3.49%

The top 10 investments make up 97.50% of the fund.

Total number of investments: 11

Key take-aways

Financial markets showed resilience through the first quarter of 2021. Equity markets continued to rise at a historic pace, despite obstacles that threatened to push the economic recovery off course. Inflationary concerns, high unemployment levels, and uneven economic data were some of the biggest challenges facing markets.

At the same time, there were major drivers that allowed markets to persevere. These included the formal recognition of Joe Biden as the next U.S. president, and the massive financial-stimulus package that followed; vaccine rollouts in Canada and the U.S.; and reassurance from central banks in both countries that interest rates will remain low and that quantitative-easing programs will continue until economic recovery is complete.

Through the second quarter of 2021, and likely the rest of this year, there are bound to be setbacks. As investors, we must be resilient and keep our emotions in check. Having a plan that’s tailored to your personal goals and risk tolerance will continue to be your greatest asset for achieving long-term investment success.

If you have questions or want to discuss your plan, contact your financial representative. For more resources and financial-market 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, please refer to your Policy and Information Folder.

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

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

Aviator Portfolios® – your secure and diversified investment option

The Co-operators® Aviator Portfolios® – expertly designed and constructed by the highly regarded institutional investment managers of Addenda Capital® and Franklin Templeton® – provide investors with broader diversification opportunities.

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

Aviator Portfolios® provides both regional and risk-exposure diversification – including exposure to unique asset classes, such as commercial mortgages, preferred shares and high-yield bonds, which tend to 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 prior warning at any time. The forecasts provided herein are not guarantees of future performance and include risks, uncertainty and assumptions. While Co-operators Life Insurance Company (“The Co-operators”) 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 Co-operators is not responsible for any loss or damage as a result of reliance on the information contained in this report. The Co-operators makes no representations or warranties as to the information contained herein and does not guarantee its accuracy, timeliness, completeness or usefulness. The Co-operators 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 www.cooperators.ca/privacy for more information. The Co-operators®, A Better Place For You®, Aviator Portfolios®, and Co-operators Aviator® are registered trademarks of The Co-operators Group Limited and are used with permission. 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 Co-operators Aviator® are investment products offered by Co-operators 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 Co-operators 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, a financial representative is a representative (or Financial Security Advisor).

Additional notes:

Returns, investment segmentation and top holdings as of March 31, 2021. Rates of return for periods less than 1 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 CONTRACTHOLDERS AND MAY INCREASE OR DECREASE IN VALUE.