What happened in financial markets during Q2 2021


Stock and bond markets*
INDEX CLOSE Q2 YTD
S&P/TSX Composite 20,165.58 7.83% 15.67%
Dow Jones Industrial Average 34,502.51 4.61% 12.73%
S&P 500 Index 4,297.50 8.17% 14.41%
NASDAQ Composite 14,503.95 9.49% 12.54%
10-yr GoC Yield 1.39% -0.16% 0.72%
10-yr U.S. Treasury Yield 1.45% -0.29% 0.52%
WTI Crude Oil (US$/bbl) 73.47 24.19% 51.42%
Canadian Dollar US$0.8068 1.46% 2.72%
Bank of Canada Prime Rate 2.45%

*Performance ending June 30, 2021. Sources: www.bloomberg.com, www.bankofcanada.ca and www.treasury.gov.


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How did Versatile Portfolios NavigatorTM perform during Q2 2021?

Q2 2021 saw equities significantly outperform fixed income. All portfolios achieved positive Q2 returns, driven by allocations to Canadian equities. The Canadian segment often provides significant exposure to economically sensitive sectors – such as energy, consumer discretionary and industrials – which have benefitted as the global economy gradually recovers from COVID-19 restrictions. Below is a breakdown of our portfolio funds, their construction, and their performance in the second quarter.

Note: Rates of return for each portfolio 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 Very Conservative Portfolio: Low-risk portfolio

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

While the Co-operators Canadian Equity Fund, the Co-operators Mawer Canadian Equity Fund, the Co-operators BlackRock U.S. Equity Index Fund and the Co-operators U.S. Equity Fund generated returns that exceeded the overall portfolio’s positive return in Q2, these contributions were offset by weaker performances from the portfolio’s large stake in fixed-income funds.

Rates of Return
Guarantee Level Q2 YTD 1 Year 3 Year 5 Year Since Inception
(Dec. 22, 2014)
75-75 2.15% -1.67% 1.23% 3.70% 2.52% 2.72%
75-100 2.12% -1.72% 1.12% 3.59% 2.40% 2.60%
100-100 2.02% -1.91% 0.74% 3.19% 2.02% 2.22%

Investment Segmentation

  • Canadian Fixed Income 77.38%
  • Canadian Equity 9.86%
  • U.S. Equity 5.22%
  • International Equity 4.72%
  • Foreign Fixed Income 2.11%
  • Cash & Other Net Assets 0.71%

Top 10 Holdings

  • Co-operators Canadian Fixed Income Fund
    29.98%
  • Co-operators BlackRock Canada Universe Bond Index Fund
    29.97%
  • Co-operators Fidelity Canadian Bond Fund
    19.99%
  • Co-operators Canadian Equity Fund
    5.00%
  • Co-operators Mawer Canadian Equity Fund
    5.00%
  • Co-operators Mawer International Equity Fund
    4.99%
  • Co-operators U.S. Equity Fund
    2.54%
  • Co-operators BlackRock U.S. Equity Index Fund
    2.53%

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

Total number of investments: 8

Co-operators Conservative Portfolio: Low- to moderate-risk portfolio

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

Despite their moderate weighting within the portfolio, strong returns from the Co-operators Canadian Equity Fund and the Co-operators Mawer Canadian Equity Fund were largely responsible for the portfolio’s positive return in Q2.

Rates of Return
Guarantee Level Q2 YTD 1 Year 3 Year 5 Year Since Inception
(Dec. 22, 2014)
75-75 2.94% 1.05% 6.25% 4.82% 4.07% 4.01%
75-100 2.90% 0.96% 6.08% 4.65% 3.90% 3.84%
100-100 2.75% 0.67% 5.45% 4.04% 3.29% 3.23%

Investment Segmentation

  • Canadian Fixed Income 58.34%
  • Canadian Equity 19.71%
  • U.S. Equity 10.42%
  • International Equity 9.43%
  • Foreign Fixed Income 1.25%
  • Cash & Other Net Assets 0.85%

Top 10 Holdings

  • Co-operators Canadian Fixed Income Fund
    24.97%
  • Co-operators BlackRock Canada Universe Bond Index Fund
    24.96%
  • Co-operators Canadian Equity Fund
    10.00%
  • Co-operators Fidelity Canadian Bond Fund
    9.99%
  • Co-operators Mawer Canadian Equity Fund
    9.99%
  • Co-operators Mawer International Equity Fund
    9.97%
  • Co-operators U.S. Equity Fund
    5.07%
  • Co-operators BlackRock U.S. Equity Index Fund
    5.05%

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

Total number of investments: 8

Co-operators Moderate Portfolio: Low- to moderate-risk portfolio

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

The Co-operators Canadian Equity Fund and the Co-operators Fidelity True North® Fund were largely responsible for the portfolio's positive return in Q2. Smaller allocations to the Co-operators Mawer Canadian Equity Fund, the Co-operators BlackRock U.S. Equity Index Fund, and the Co-operators U.S. Equity Fund, also made modest contributions.

Rates of Return
Guarantee Level Q2 YTD 1 Year 3 Year 5 Year Since Inception
(Dec. 22, 2014)
75-75 3.97% 4.19% 11.87% 6.03% 5.52% 5.16%
75-100 3.92% 4.10% 11.69% 5.86% 5.35% 4.99%
100-100 3.77% 3.80% 11.03% 5.23% 4.73% 4.37%

Investment Segmentation

  • Canadian Fixed Income 39.34%
  • Canadian Equity 33.74%
  • International Equity 14.22%
  • U.S. Equity 11.13%
  • Cash & Other Net Assets 1.18%
  • Foreign Fixed Income 0.39%

Top 10 Holdings

  • Co-operators Canadian Fixed Income Fund
    19.97%
  • Co-operators BlackRock Canada Universe Bond Index Fund
    19.96%
  • Co-operators Canadian Equity Fund
    15.00%
  • Co-operators Mawer International Equity Fund
    14.95%
  • Co-operators Fidelity True North® Fund
    10.02%
  • Co-operators Mawer Canadian Equity Fund
    9.98%
  • Co-operators U.S. Equity Fund
    5.07%
  • Co-operators BlackRock U.S. Equity Index Fund
    5.05%

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

Total number of investments: 8

Co-operators Aggressive Portfolio: Moderate-risk portfolio

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

Strong returns from significant allocations to the Co-operators Canadian Equity Fund and the Co-operators Mawer Canadian Equity Fund were largely responsible for the portfolio’s positive performance in Q2. The Co-operators Fidelity True North® Fund, the Co-operators BlackRock U.S. Equity Index Fund and the Co-operators U.S. Equity Fund also made positive contributions.

Rates of Return
Guarantee Level Q2 YTD 1 Year 3 Year 5 Year Since Inception
(Dec. 22, 2014)
75-75 4.48% 7.14% 18.06% 7.25% 7.35% 6.55%
75-100 4.44% 7.05% 17.87% 7.08% 7.18% 6.38%
100-100 4.29% 6.74% 17.17% 6.45% 6.54% 5.75%

Investment Segmentation

  • Canadian Equity 43.56%
  • Canadian Fixed Income 19.66%
  • International Equity 18.58%
  • U.S. Equity 16.55%
  • Cash & Other Net Assets 1.46%
  • Foreign Fixed Income 0.19%

Top 10 Holdings

  • Co-operators Canadian Equity Fund
    19.99%
  • Co-operators Mawer Canadian Equity Fund
    14.96%
  • Co-operators Mawer International Equity Fund
    14.94%
  • Co-operators Fidelity Global Fund
    10.04%
  • Co-operators Fidelity True North® Fund
    10.01%
  • Co-operators Canadian Fixed Income Fund
    9.98%
  • Co-operators BlackRock Canada Universe Bond Index Fund
    9.97%
  • Co-operators U.S. Equity Fund
    5.07%
  • Co-operators BlackRock U.S. Equity Index Fund
    5.04%

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

Total number of investments: 9

Co-operators Very Aggressive Portfolio: Moderate-risk portfolio

Designed to achieve maximum capital growth over the long term.

Strong performance from significant allocations to the Co-operators Canadian Equity Fund, the Co-operators Fidelity True North® Fund, the Co-operators Mawer Canadian Equity Fund, and the Co-operators BlackRock Canadian Equity Index Fund were largely responsible for the portfolio’s positive return in Q2.

Rates of Return
Guarantee Level Q2 YTD 1 Year 3 Year 5 Year Since Inception
(Dec. 22, 2014)
75-75 5.69% 10.95% 25.19% 8.71% 9.08% 7.77%
75-100 5.63% 10.83% 24.92% 8.48% 8.84% 7.54%
100-100 5.44% 10.42% 23.98% 7.66% 8.03% 6.74%

Investment Segmentation

  • Canadian Equity 58.01%
  • U.S. Equity 21.87%
  • International Equity 18.60%
  • Cash & Other Net Assets 1.59%
  • Canadian Fixed Income 0.02%

Top 10 Holdings

  • Co-operators Canadian Equity Fund
    19.97%
  • Co-operators Fidelity True North® Fund
    15.00%
  • Co-operators Mawer Canadian Equity Fund
    14.95%
  • Co-operators Mawer International Equity Fund
    14.93%
  • Co-operators Fidelity Global Fund
    10.03%
  • Co-operators BlackRock Canadian Equity Index Fund
    9.96%
  • Co-operators U.S. Equity Fund
    7.60%
  • Co-operators BlackRock U.S. Equity Index Fund
    7.56%

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

Total number of investments: 8

Key take-aways

Financial markets continued to perform well on a quarter-by-quarter basis. Vaccination efforts played a significant role in bolstering investor confidence for a wide-spread and sustainable economic recovery.

COVID-19 variants remain a concern for the second half of 2021, but optimism for a strong economic recovery has outpaced those concerns to date. Investors will continue to monitor central bank activity with the U.S. Federal Reserve and the Bank of Canada pledging to keep interest rates at historic lows and maintain monetary policy support until COVID-19’s economic impacts are firmly in the rear-view mirror.

In uncertain times, it’s important to focus on the future. If your investment goals, risk tolerance and time horizon haven’t changed, there’s no need to change your plan. Look past short-term ups and downs, and focus on long-term prospects. Speaking with a Co-operators financial representative can help.

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 our Segregated Fund Performance page. 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.

Versatile Portfolios NavigatorTM – your flexible and secure investment option

Whether you’re saving for retirement, the unexpected or that big item on your bucket list, your path to financial success is unique. And Versatile Portfolios NavigatorTM can provide you with the flexibility you need. In addition to a select group of diverse investment options from top, trusted investment managers, we offer a suite of portfolio funds – all actively managed and consisting of underlying funds – that takes the guesswork out of investing.



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 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 cooperators.ca/privacy for more information. The Co-operators® and A Better Place For You® are registered trademarks of The Co-operators Group Limited and are used with permission. Versatile Portfolios NavigatorTM is a trademark of The Co-operators Group Limited and is used with permission. Versatile Portfolios NavigatorTM is an investment product 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 (reduced proportionately by withdrawals from, or investment transfers out of, the segregated funds). No guarantee is provided upon surrender or cancellation. Subject to any applicable death and maturity guarantee, any part of the premium or other amount that is allocated to a segregated fund is invested at the risk of the policyholder and may increase or decrease in value. Ask your financial representative for details. 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 June 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.