Quarterly Portfolio Fund 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 1.42% -0.09%
10-year US Treasury Yield 2.40% 0.98%
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 Portfolio Funds perform during Q1 2022?

In Q1, all Portfolio Funds posted negative returns. Performance was impacted most significantly by Canadian fixed-income and international-equity exposure. Helping to offset losses, to a modest degree, was exposure to Canadian equities.

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.

Cooperators Income Portfolio low risk

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

Canadian fixed income, which represents a significant portion of the portfolio’s overall weight, underperformed in Q1. This put downside pressure on returns. While the Co-operators Canadian Equity Fund and the Co-operators Mawer Canadian Equity Fund were positive contributors, their lower weighting – relative to the overall fund – did not make a significant impact.

Investment segmentation

  • Canadian Fixed Income 77.20%
  • Canadian Equity 9.81%
  • US Equity 5.22%
  • International Equity 4.45%
  • Foreign Fixed Income 2.34%
  • Cash & Other Net Assets 0.98%
Rates of return
Guarantee level Q1 1 year 3 year 5 year Since inception
December 22, 2014
75-75 -6.90% -3.33% 0.87% 1.39% 1.66%
75-100 -6.93% -3.44% 0.76% 1.27% 1.55%
100-100 -7.02% -3.80% 0.38% 0.89% 1.16%

Top 10 holdings

  • Cooperators Canadian Fixed Income Fund
    30.04%
  • Cooperators BlackRock Canada Universe Bond Index Fund
    30.00%
  • Cooperators Fidelity Canadian Bond Fund
    20.01%
  • Cooperators Mawer International Equity Fund
    5.03%
  • Cooperators Canadian Equity Fund
    4.98%
  • Cooperators Mawer Canadian Equity Fund
    4.97%
  • Cooperators BlackRock US Equity Index Fund
    2.49%
  • Cooperators US Equity Fund
    2.48%

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

Total number of investments 8

Cooperators Balanced Income Portfolio low to moderate risk

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

Underperformance from the Canadian fixed-income segment and the international equity segment drove the overall negative return in Q1. The Co-operators Canadian Equity Fund and the Co-operators Mawer Canadian Equity Fund made positive contributions, helping to offset negative returns.

Investment segmentation

  • Canadian Fixed Income 58.19%
  • Canadian Equity 19.63%
  • US Equity 10.45%
  • International Equity 8.90%
  • Foreign Fixed Income 1.54%
  • Cash & Other Net Assets 1.29%
Rates of return
Guarantee level Q1 1 year 3 year 5 year Since inception
December 22, 2014
75-75 -6.21% -0.37% 2.92% 2.87% 3.12%
75-100 -6.25% -0.53% 2.76% 2.71% 2.96%
100-100 -6.39% -1.12% 2.15% 2.10% 2.35%

Top 10 holdings

  • Cooperators Canadian Fixed Income Fund
    25.05%
  • Cooperators BlackRock Canada Universe Bond Index Fund
    25.02%
  • Cooperators Mawer International Equity Fund
    10.06%
  • Cooperators Fidelity Canadian Bond Fund
    10.01%
  • Cooperators Canadian Equity Fund
    9.96%
  • Cooperators Mawer Canadian Equity Fund
    9.96%
  • Cooperators BlackRock US Equity Index Fund
    4.98%
  • Cooperators US Equity Fund
    4.96%

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

Total number of investments 8

Cooperators Balanced Growth Portfolio low to moderate risk

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

The portfolio’s allocations to international equities detracted the most from performance in Q1. Canadian fixed-income exposure also factored negatively. The Co-operators Canadian Equity Fund provided the highest upside.

Investment segmentation

  • Canadian Fixed Income 39.16%
  • Canadian Equity 33.77%
  • International Equity 13.39%
  • US Equity 11.27%
  • Cash & Other Net Assets 1.66%
  • Foreign Fixed Income 0.75%
Rates of return
Guarantee level Q1 1 year 3 year 5 year Since inception
December 22, 2014
75-75 -5.13% 3.01% 5.17% 4.42% 4.48%
75-100 -5.16% 2.84% 5.00% 4.25% 4.31%
100-100 -5.30% 2.23% 4.38% 3.64% 3.70%

Top 10 holdings

  • Cooperators Canadian Fixed Income Fund
    20.05%
  • Cooperators BlackRock Canada Universe Bond Index Fund
    20.02%
  • Cooperators Mawer International Equity Fund
    15.10%
  • Cooperators Canadian Equity Fund
    14.94%
  • Cooperators Fidelity True North Fund
    9.98%
  • Cooperators Mawer Canadian Equity Fund
    9.96%
  • Cooperators US Equity Fund
    4.98%
  • Cooperators BlackRock US Equity Index Fund
    4.97%

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

Total number of investments 8

Cooperators Growth Portfolio low to moderate risk

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

The portfolio’s moderate exposure to international equities detracted the most from performance in Q1. The Co-operators Canadian Equity Fund, with its larger allocation within the portfolio, posted a strong quarterly return and made the largest positive contribution.

Investment segmentation

  • Canadian Equity 43.82%
  • Canadian Fixed Income 19.62%
  • US Equity 17.27%
  • International Equity 16.98%
  • Cash & Other Net Assets 1.94%
  • Foreign Fixed Income 0.37%
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Rates of return
Guarantee level Q1 1 year 3 year 5 year Since inception
December 22, 2014
75-75 -4.25% 5.71% 7.40% 5.94% 6.02%
75-100 -4.29% 5.54% 7.23% 5.77% 5.85%
100-100 -4.43% 4.91% 6.59% 5.14% 5.23%

Top 10 holdings

  • Cooperators Canadian Equity Fund
    19.95%
  • Cooperators Mawer International Equity Fund
    15.12%
  • Cooperators Mawer Canadian Equity Fund
    14.96%
  • Cooperators Canadian Fixed Income Fund
    10.04%
  • Cooperators BlackRock Canada Universe Bond Index Fund
    10.03%
  • Cooperators Fidelity True North Fund
    9.99%
  • Cooperators Fidelity Global Fund
    9.95%
  • Cooperators US Equity Fund
    4.97%
  • Cooperators BlackRock US Equity Index Fund
    4.94%

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

Total number of investments 9

Cooperators Maximum Growth Portfolio moderate risk

Designed to achieve maximum capital growth over the long term.

The Co-operators Canadian Equity Fund, representing the most significant portfolio allocation, posted a strong quarterly return and made the largest positive contribution to performance. The Co-operators BlackRock Canadian Equity Index Fund and the Co-operators Mawer Canadian Equity Fund also helped to offset negative returns in Q1. The portfolio’s moderate exposure to international equities was unfavourable to performance.

Investment segmentation

  • Canadian Equity 58.41%
  • US Equity 22.40%
  • International Equity 17.01%
  • Cash & Other Net Assets 2.15%
  • Canadian Fixed Income 0.03%
Rates of return
Guarantee level Q1 1 year 3 year 5 year Since inception
December 22, 2014
75-75 -2.74% 10.23% 10.14% 7.76% 7.56%
75-100 -2.79% 9.99% 9.90% 7.53% 7.33%
100-100 -2.97% 9.16% 9.08% 6.72% 6.53%

Top 10 holdings

  • Cooperators Canadian Equity Fund
    19.98%
  • Cooperators Mawer International Equity Fund
    15.14%
  • Cooperators Fidelity True North Fund
    15.00%
  • Cooperators Mawer Canadian Equity Fund
    14.98%
  • Cooperators BlackRock Canadian Equity Index Fund
    9.98%
  • Cooperators Fidelity Global Fund
    9.96%
  • Cooperators BlackRock US Equity Index Fund
    7.4o%
  • Cooperators US Equity Fund
    7.47%

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

Total number of investments 8

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, please 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. 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 is a registered trademark of Cooperators Group Limited and is used with permission. Versatile Portfolios Navigator and Investing in your future. Together. are trademarks of Cooperators Life Insurance Company. True North is a registered trademark of Fidelity Investments Canada ULC and used with permission. Versatile Portfolios Navigator™ is an investment product 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 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 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.

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.

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