Quarterly Aviator Portfolios update

What happened in financial markets during Q1 2021

Stock and bond markets
Index Close Q1
S&P/TSX Composite 21,890.16 3.14%
Dow Jones Industrial Average 34,678.35 -4.57%
S&P 500 Index 4,530.41 -4.95%
NASDAQ Composite 14,220.52 -9.10%
10-year GoC Yield 2.40% 0.98%
10-year US Treasury Yield 2.32% 0.80%
WTI Crude Oil US$/bbl $100.28 33.33%
Canadian Dollar US$0.7995 1.05%
Bank of Canada Prime Rate 2.70%

Performance ending March 31, 2022. Sources Bloomberg.


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How did Aviator Portfolios perform during Q1 2022?

In Q1, all Aviator Portfolioss funds posted negative returns. Performance was impacted most significantly by Canadian fixed-income exposure, with the Co-operators Aviators Growth portfolio also being hindered by its exposure to international equities.

Note: 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 the preservation and moderate growth of capital, with low levels of volatility.

Canadian fixed-income allocations, which account for almost half of the portfolio, detracted from overall returns. The Co-operators Bissett Canadian Equity Fund, despite its low weighting within the portfolio, outperformed its benchmark and had the largest positive impact on performance in Q1.

Investment Segmentation

  • Canadian Fixed Income 61.31%
  • Canadian Equity 16.00%
  • Foreign Fixed Income 10.81%
  • US Equity 4.81%
  • Cash & Other Net Assets 4.57%
  • International Equity 2.50%
Rates of Return
Series 100
Guarantee Level Q1 1 year Since inception
December 2, 2019
7575 -4.36% -1.29% 1.69%
75100 -4.39% -1.45% 1.50%
Rates of Return
Series 500
Guarantee Level Q1 1 year 3 year Since inception
October 2, 2017
7575 -4.30% -1.07% 2.21% 2.19%
75100 -4.34% -1.23% 2.04% 2.02%

Top 10 holdings

  • Cooperators Corporate Bond Fund
    25.03%
  • Cooperators Canadian Fixed Income Fund
    20.07%
  • Cooperators Commercial Mortgage Fund
    14.95%
  • Cooperators Preferred Share Equity Fund
    9.96%
  • Cooperators Global Equity Fund
    7.50%
  • Cooperators Franklin High Income Fund
    5.01%
  • Cooperators Templeton Global Bond Fund
    5.01%
  • Cooperators Bissett Canadian Equity Fund
    5.00%
  • Cooperators Bissett Short Duration Bond Fund
    4.98%
  • Cooperators Concentrated Canadian Equity Fund
    2.49%
  • 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 portfolio’s significant weighting towards Canadian fixed income negatively impacted the quarterly return. The moderate allocation to international equity also drove some of the negative performance. The Co-operators Bissett Canadian Equity Fund outperformed its benchmark, provided a positive return and helped to slightly offset downside pressure.

Investment Segmentation

  • Canadian Equity 29.08%
  • Canadian Fixed Income 28.34%
  • US Equity 18.46%
  • Foreign Fixed Income 11.06%
  • International Equity 8.27%
  • Cash & Other Net Assets 4.79%
Rates of Return
Series 100
Guarantee Level Q1 1 year Since inception
December 2, 2019
75-75 -3.47% 2.40% 5.16%
75-100 -3.51% 2.23% 4.92%
Rates of Return
Series 500
Guarantee Level Q1 1 year 3 year Since inception
October 2, 2017
75-75 -3.42% 2.62% 5.10% 4.06%
75-100 -3.46% 2.45% 4.92% 3.89%

Top 10 holdings

  • Cooperators Canadian Fixed Income Fund
    17.56%
  • Cooperators Global Equity Fund
    12.49%
  • Cooperators Commercial Mortgage Fund
    12.46%
  • Cooperators Concentrated Canadian Equity Fund
    12.45%
  • Cooperators Preferred Share Equity Fund
    9.97%
  • Cooperators Franklin High Income Fund
    7.52%
  • Cooperators Bissett Canadian Equity Fund
    7.50%
  • Cooperators SmallCap US Equity Index Fund
    7.45%
  • Cooperators Fidelity Global Real Estate Fund
    5.12%
  • Cooperators Templeton Global Bond Fund
    5.01%

The top 10 investments make up 97.53% of the fund.

Total number of investments 11

Cooperators Aviator Growth Portfolio moderate risk

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

The portfolio’s significant exposure to international equities factored negatively on the portfolio’s overall performance. Exposure to U.S. equities, to a lesser extent, also hindered performance. The portfolio’s moderate weighting towards the Co-operators Bissett Canadian Equity Fund contributed positively in Q1, outperforming its benchmark and partially offsetting some of the negative returns.

Investment Segmentation

  • Canadian Equity 29.33%
  • US Equity 27.14%
  • Canadian Fixed Income 13.22%
  • Foreign Fixed Income 12.85%
  • International Equity 12.70%
  • Cash & Other Net Assets 4.76%
Rates of Return
Series 100
Guarantee Level Q1 1 year Since inception
December 2, 2019
7575 -3.37% 3.83% 6.16%
75100 -3.41% 3.66% 5.90%
Rates of Return
Series 500
Guarantee Level Q1 1 year 3 year Since inception
October 2, 2017
7575 -3.32% 4.06% 5.84% 4.48%
75100 -3.35% 3.89% 5.68% 4.31%

Top 10 holdings

  • Cooperators Global Equity Fund
    17.48%
  • Cooperators Concentrated Canadian Equity Fund
    12.94%
  • Cooperators Fidelity Global Real Estate Fund
    10.24%
  • Cooperators Franklin High Income Fund
    10.02%
  • Cooperators Bissett Canadian Equity Fund
    9.99%
  • Cooperators SmallCap US Equity Index Fund
    9.93%
  • Cooperators Commercial Mortgage Fund
    8.46%
  • Cooperators Preferred Share Equity Fund
    7.47%
  • Cooperators Templeton Global Bond Fund
    5.01%
  • Cooperators Corporate Bond Fund
    5.00%

The top 10 investments make up 96.54% of the fund.

Total number of investments 11

Key takeaways

The first quarter of 2022 saw global financial markets struggle under the pressure of economic and societal headwinds. Central banks around the world – including the Bank of Canada and the U.S. Federal Reserve - started raising interest rates and began a process of quantitative tightening, aiming to combat the highest rates of inflation seen in decades. Russia’s invasion of Ukraine, which was met with severe sanctions from NATO and its allies, exasperated supply-chain issues and threw global commodity markets into disarray. COVID-19 infections and the pandemic’s impact on the economy also lingered.

All this weighed on markets in the first quarter, especially fixed-income investments such as bonds which are particularly sensitive to interest-rate changes. When rates are increased, the market price of held bonds immediately decline. This is because new bonds will soon be issued to the market, offering investors higher and more-attractive interest-rate payments to encourage buying. Likewise, responding to these higher overall rates, existing bonds typically experience a decline in price to make their comparatively lower interest rate more appealing to investors. In general, the higher the duration, the more a bond’s price will decline as interest rates rise. Therefore, during a period of rising rates, it is beneficial to hold bonds which exhibit lower duration, to reduce exposure to interest-rate risk. (The ratio of fixed income to equities in your portfolio will depend on your risk tolerance and investment objectives. A Co-operators financial representative would be happy to help you find the right balance.)

Market uncertainty can be alarming for investors, but volatility is a normal part of any investing experience. When declines in the market push you past your comfort level, having core strategies in mind can help you stay focused on your goals – and your reasons for investing in the first place. Review the Plan for market volatility resources on Market View for more information.

Sales charges, expenses, and other fees

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, refer to your Policy Statement.

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

Aviator Portfolios are a secure and diversified investment option

Cooperators Aviator Portfolios– expertly designed and constructed by the highly regarded investment managers at 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 hardearned savings alongside some of Canada’s largest institutional clients, including pension funds, foundations, endowments, governments and corporations.

Aviator Portfolios provide both regional and risk diversification, including exposure to unique asset classes, such as commercial mortgages, preferred shares and high-yield 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. Cooperators is not responsible for any loss or damage as a result of reliance on the information contained in this report. Cooperators makes no representations or warranties as to the information contained herein and does not guarantee its accuracy, timeliness, completeness or usefulness. 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. Cooperators, Aviator Portfolios, and Cooperators Aviator are registered trademarks of Cooperators Group Limited and are used with permission. Investing in your future. Together. is a trademark of 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.

Returns, investment segmentation and top holdings as of March 31, 2022. 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.

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