Quarterly Portfolio Fund 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 the portfolio funds perform during Q3 2021?

In Q3, most underlying funds generated neutral returns. Results were primarily driven by US equity funds across the lowerrisk allocations, while performance in the moderate and higherrisk portfolios was driven by Canadian and US equity funds. Fixedincome and emergingmarket funds generated negative returns and detracted from overall performance.

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 Very Conservative Portfolio low risk

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

Though modestly weighted in relation to the overall portfolio, the Cooperators US Equity Fund, the Cooperators Mawer Canadian Equity Fund and the Cooperators BlackRock US Equity Index Fund generated the most-favourable returns in Q3. The portfolio’s heavier weighting toward fixedincome funds moderately detracted from the overall performance.

Investment segmentation

  • Canadian Fixed Income 77.74%
  • Canadian Equity 9.83%
  • US Equity 5.07%
  • International Equity 4.49%
  • Foreign Fixed Income 2.14%
  • Cash & Other Net Assets 0.73%
Rates of return
Guarantee level Q3 YTD 1 year 3 year 5 year Since inception
December 22, 2014
75-75 -0.53% -2.19% -0.73% 3.62% 3.62% 2.53%
75-100 -0.56% -2.27% -0.84% 3.45% 3.45% 2.42%
100-100 -0.65% -2.55% -1.21% 3.45% 3.45% 2.03%

Top 10 holdings

  • Cooperators BlackRock Canada Universe Bond Index Fund
    30.13%
  • Cooperators Canadian Fixed Income Fund
    30.11%
  • Cooperators Fidelity Canadian Bond Fund
    20.08%
  • Cooperators Canadian Preferred Shared Equity Fund
    4.97%
  • Cooperators Global Equity Fund
    4.96%
  • Cooperators Mawer International Equity Fund
    4.85%
  • Cooperators BlackRock US Equity Index Fund
    2.46%
  • Cooperators US Equity Fund
    2.44%

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

Total number of investments 8

Cooperators Conservative Portfolio low to moderate risk

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

The portfolio received positive contributions from the Cooperators US Equity Fund, the Cooperators Mawer Canadian Equity Fund and the Cooperators BlackRock US Equity Index Fund, all of which helped to offset negative performance within the fixedincome segment.

Investment segmentation

  • Canadian Fixed Income 58.89%
  • Canadian Equity 19.75%
  • US Equity 10.20%
  • International Equity 9.01%
  • Foreign Fixed Income 1.32%
  • Cash & Other Net Assets 0.83%
Rates of return
Guarantee level Q3 YTD 1 year 3 year 5 year Since inception
December 22, 2014
75-75 -0.16% 0.89% 3.53% 4.99% 3.53% 3.83%
75-100 -0.20% 0.77% 3.36% 4.83% 3.36% 3.67%
100-100 -0.35% 0.32% 2.75% 4.21% 2.75% 3.06%

Top 10 holdings

  • Cooperators BlackRock Canada Universe Bond Index Fund
    25.20%
  • Cooperators Canadian Fixed Income Fund
    25.19%
  • Cooperators Fidelity Canadian Bond Fund
    10.08%
  • Cooperators Canadian Equity Fund
    9.98%
  • Cooperators Mawer Canadian Equity Fund
    9.96%
  • Cooperators Mawer International Equity Fund
    9.74%
  • Cooperators BlackRock US Equity Index Fund
    4.94%
  • Cooperators US Equity Fund
    4.91%

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

Total number of investments 8

Cooperators Moderate Portfolio low to moderate risk

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

Though only adding modest to moderate weight to the portfolio, the combined performance of the Cooperators Fidelity True North Fund, the Cooperators US Equity Fund, the Cooperators Mawer Canadian Equity Fund and the Cooperators BlackRock US Equity Index Fund provided a strong counterbalance to the negative returns seen in the fixedincome segment.

Investment segmentation

  • Canadian Fixed Income 39.89%
  • Canadian Equity 33.84%
  • International Equity 13.66%
  • US Equity 11.01%
  • Cash & Other Net Assets 1.12%
  • Foreign Fixed Income 0.48%
Rates of return
Guarantee level Q3 YTD 1 year 3 year 5 year Since inception
December 22, 2014
75-75 0.18% 4.37% 8.50% 6.33% 4.90% 4.99%
75-100 0.14% 4.24% 8.33% 6.15% 4.73% 4.82%
100-100 -0.01% 3.78% 7.69% 5.53% 4.11% 4.20%

Top 10 holdings

  • Cooperators BlackRock Canada Universe Bond Index Fund
    20.23%
  • Cooperators Canadian Fixed Income Fund
    20.22%
  • Cooperators Canadian Equity Fund
    15.02%
  • Cooperators Mawer International Equity Fund
    14.66%
  • Cooperators Mawer Canadian Equity Fund
    10.00%
  • Cooperators Fidelity True North Fund
    9.99%
  • Cooperators BlackRock US Equity Index Fund
    4.96%
  • Cooperators US Equity Fund
    4.92%

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

Total number of investments 8

Cooperators Aggressive Portfolio low to moderate risk

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

A positive return from the Cooperators Mawer Canadian Equity Fund, with its larger allocation relative to the overall portfolio, was the leading contributor to the return in Q3. The Cooperators Fidelity True North Fund and the Cooperators US Equity Fund, though modestly weighted, also generated strong quarterly returns and added value. Exposure to fixed income was a slight drag on performance.

Investment segmentation

  • Canadian Equity 43.91%
  • Canadian Fixed Income 20.04%
  • International Equity 18.03%
  • US Equity 16.46%
  • Cash & Other Net Assets 1.32%
  • Foreign Fixed Income 0.24%
Rates of return
Guarantee level Q3 YTD 1 year 3 year 5 year Since inception
December 22, 2014
75-75 0.41% 7.58% 13.87% 7.45% 6.49% 6.36%
75-100 0.37% 7.45% 13.69% 7.27% 6.32% 6.19%
100-100 0.22% 6.97% 13.02% 6.64% 5.69% 5.56%

Top 10 holdings

  • Cooperators Canadian Equity Fund
    20.10%
  • Cooperators Mawer Canadian Equity Fund
    15.05%
  • Cooperators Mawer International Equity Fund
    14.72%
  • Cooperators BlackRock Canada Universe Bond Index Fund
    10.16%
  • Cooperators Canadian Fixed Income Fund
    10.15%
  • Cooperators Fidelity True North Fund
    10.03%
  • Cooperators Fidelity Global Fund
    9.88%
  • Cooperators BlackRock US Equity Index Fund
    4.97%
  • Cooperators US Equity Fund
    4.94%

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

Total number of investments 9

Cooperators Very Aggressive Portfolio moderate risk

Designed to achieve maximum capital growth over the long term.

In Q3, the portfolio’s largest contributions came from its heavy allocations toward the Cooperators Mawer Canadian Equity Fund and the Cooperators Fidelity True North Fund. Additional value came from the modestly weighted Cooperators US Equity Fund, which generated the strongest return within the portfolio.

Investment segmentation

  • Canadian Equity 58.58%
  • US Equity 21.67%
  • International Equity 18.12%
  • Cash & Other Net Assets 1.60%
  • Canadian Fixed Income 0.03%
Rates of return
Guarantee level Q3 YTD 1 year 3 year 5 year Since inception
December 22, 2014
75-75 0.77% 11.81% 20.09% 8.90% 8.13% 7.59%
75-100 0.72% 11.63% 19.83% 8.67% 7.90% 7.36%
100-100 0.52% 11.00% 18.93% 7.85% 7.09% 6.56%

Top 10 holdings

  • Cooperators BlackRock Canada Universe Bond Index Fund
    20.16%
  • Cooperators Canadian Fixed Income Fund
    15.09%
  • Cooperators Fidelity Canadian Bond Fund
    15.09%
  • Cooperators Canadian Equity Fund
    14.75%
  • Cooperators Mawer Canadian Equity Fund
    10.09%
  • Cooperators Mawer International Equity Fund
    9.91%
  • Cooperators BlackRock US Equity Index Fund
    7.48%
  • Cooperators US Equity Fund
    7.43%

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

Total number of investments 8

Key takeaways

Financial markets stalled in Q3, as COVID-19 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 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, 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.

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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.