Insurance Investments Group Claims About us

Quarterly Aviator Portfolios® update

What happened in financial markets during Q1 2023

Stock and bond market*

Stock and bond markets
Index Close Q1
S&P/TSX Composite 20,099.89 3.69%
Dow Jones Industrial Average 33,274.15 0.38%
S&P 500 Index 4,109.31 7.03%
NASDAQ Composite 12,221.91 16.77%
10-year Canadian Bond Yield 2.90% -0.39%
10-year U.S. Treasury Yield 3.49% -0.34%
WTI Crude Oil (US$/barrel) $75.70 -5.97%
Canadian Dollar US$ 0.7398 0.27%
Bank of Canada Prime Rate 6.70%

*Performance ending March 31, 2023. Source: Refinitiv.

Sign up for Investment Update to get the latest information on the financial markets, insights around current headlines, special reports, and more.

 

How Aviator Portfolios® performed during Q1 2023

All Aviator Portfolios® posted positive returns in Q1, reflecting bullish conditions in the broader financial markets. All funds within the portfolios contributed, with global equities leading the way.

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 Aviator® Income Plus Portfolio: low risk

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

The portfolio’s heavy allocations to Canadian fixed income and corporate bonds (representing 45% of portfolio’s weight) were responsible for over 40% of the overall positive return in Q1. Despite a relatively low portfolio weighting, global equities also had a significant positive impact on overall performance. 

aviator-income-plus-portfolio-investment-segmentation-pie-chart
Investment Segmentation
  • Canadian Fixed Income 61.36%
  • Canadian Equity 15.63%
  • Foreign Fixed Income 10.68%
  • Cash & Other Net Assets 5.07%
  • U.S.Equity 4.57%
  • International Equity 2.69%
Rates of Return
Series 100
Guarantee Level

Q1

1 year 3 year Since inception
Dec 2, 2019
75-75 2.74% -2.69% 2.54% 0.35%
75-100 2.70% -2.85% 2.37% 0.17%
Rates of Return
Series 500
Guarantee Level Q1 1 year 3 year 5 year Since inception
Dec 2, 2017
75-75 2.80% -2.48% 2.76% 1.21% 1.32%
75-100 2.76% -2.64% 2.59% 1.04% 1.16%
Top 10 holdings
Co-operators Corporate Bond Fund 24.98%
Co-operators Canadian Fixed Income Fund 19.97%
Co-operators Commercial Mortgage Fund 14.96%
Co-operators Preferred Share Equity Fund 10.00%
Co-operators Global Equity Fund 7.56%

Co-operators Franklin High Income Fund

5.02%

Co-operators Bissett Canadian Equity Fund

5.02%

Co-operators Bissett Short Duration Bond Fund

4.99%

Co-operators Templeton Global Bond Fund

4.98%
Co-operators Concentrated Canadian Equity Fund 2.52%
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

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

Global equities provided the largest contribution to the overall positive return, in addition to contributions from the portfolio’s significant allocation to Canadian fixed income.

aviator-diversified-portfolio-investment-segmentation-Pie-Chart
Investment Segmentation
  • Canadian Fixed Income 29.13%
  • Canadian Equity 27.99%
  • U.S. Equity 18.40%
  • Foreign Fixed Income 11.03%
  • International Equity 8.24%
  • Cash & Other Net Assets 5.21%
Rates of Return
Series 100
Guarantee Level Q1 1 year 3 year Since inception
Dec 2, 2019
75-75 3.29% -3.68% 7.31% 2.42%
75-100 3.25% -3.84% 7.13% 2.21%
Rates of Return
Series 500
Guarantee Level Q1 1 year 3 year 5 year Since inception
Oct 2, 2017
75-75 3.35% -3.47% 7.54% 2.62% 2.65%
75-100 3.30% -3.63% 7.36% 2.45% 2.48%
Top 10 holdings
Co-operators Canadian Fixed Income Fund 17.42%

Co-operators Global Equity Fund

12.55%
Co-operators Concentrated Canadian Equity Fund 12.53%
Co-operators Commercial Mortgage Fund
12.43%
Co-operators Preferred Share Equity Fund 9.97%
Co-operators Small-Cap U.S. Equity Index Fund 7.59%

Co-operators Franklin High Income Fund

7.51%

Co-operators Bissett Canadian Equity Fund

7.50%
Co-operators Fidelity Global Real Estate Fund 5.05%
Co-operators Templeton Global Bond Fund 4.96%
The top 10 investments make up 97.51% of the fund.
Total number of investments: 11

Co-operators Aviator® Growth Portfolio: moderate risk

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

Emerging market holdings contributed almost 9% of the overall return, despite having the lowest weight within the portfolio. Global equities, with a much higher portfolio weighting, generated over one-third of the portfolio’s overall return. Real estate assets also had a large positive impact relative to the total fund performance.  

aviator-growth-portfolio-investment-segmentation-pie-chart
Investment Segmentation
  • Canadian Equity 28.91%
  • U.S. Equity 27.16%
  • Canadian Fixed Income 13.31%
  • Foreign Fixed Income 13.24%
  • International Equity 12.41%
  • Cash & Other Net Assets 4.97%
Rates of Return
Series 100
Guarantee Level Q1 1 an 3 year Since inception
Dec 2, 2019
75-75 3.41% -4.22% 9.06% 2.93%
75-100 3.37% -4.38% 8.86% 2.70%
Rates of Return
Series 500
Guarantee Level Q1 1 year 3 year 5 year Since inception
Oct 2, 2017
75-75 3,47% -4,01% 9,28% 2.85% 2.88%
75-100 3,43% -4,17% 9,10% 2,68% 2.71%
Top 10 holdings
Co-operators Global Equity Fund 17.55%
Co-operators Concentrated Canadian Equity Fund 13.00%

Co-operators Small-Cap U.S. Equity Index Fund

10.10%
Co-operators Fidelity Global Real Estate Fund
10.08%

Co-operators Franklin High Income Fund

10.00%
Co-operators Bissett Canadian Equity Fund
9.98%
Co-operators Commercial Mortgage Fund 8.43%
Co-operators Preferred Share Equity Fund 7.46%
Co-operators Corporate Bond Fund
4.97%
Co-operators Templeton Global Bond Fund 4.95%
The top 10 investments make up 96.52% of the fund.
Total number of investments: 11

Key take-aways

Uncertainties about China’s economic reopening from COVID lockdowns, energy-supply disruptions related to the war in Ukraine, and the stability of U.S. and European banks weighed heavily on global markets in Q1 – adding volatility at various points through the quarter. The most influential factor on performance, however, may have been the ever-changing expectations of investors for the path of central-bank interest-rate hikes.

While it was comforting to see equity markets rally in Q1, the market’s day-to-day ups and downs can be stressful, and many uncertainties remain on the path ahead. But it’s important to put market performance into perspective, while also keeping your goals front and centre. Staying invested – and continuing to invest – throughout market fluctuations is the best way to capitalize on likely market recoveries. Read these tips for dealing with market volatility if you’re feeling anxious about your investments. If you have questions, a Co-operators financial representative is always ready to help.

Interested in more tips and insights? Check out our Market View page for investment basics and weekly updates on market performance. You can even sign-up to have this news sent directly to your inbox and you’ll be entered to win a $100 gift card of your choosing!* 

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

Co-operators 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 hard-earned 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 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 (“Co-operators”) believes 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. Co-operators is not responsible for any loss or damage as a result of reliance on the information contained in this report. Co-operators makes no representations or warranties as to the information contained herein and does not guarantee its accuracy, timeliness, completeness or usefulness. 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. Co-operators®, Aviator Portfolios®, and Co-operators Aviator® are registered trademarks of Co-operators Group Limited and are used with permission. Investing in your future. Together.TM is a trademark of Co-operators 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 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 (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. © 2023 Co-operators Life Insurance Company.

If you have questions or want to discuss your investments, please contact your authorized financial representative.

Returns, investment segmentation and top holdings as of March 31, 2023. 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.

The Dow Jones Industrial Average and S&P 500 ("Indices") are products of S&P Dow Jones Indices LLC, its affiliates and/or their licensors and has been licensed for use by Co-operators Financial Services Limited Copyright © 2023 S&P Dow Jones Indices LLC, its affiliates and/or their licensors. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices please visit www.spdji.com. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors shall have any liability for any errors, omissions, or interruptions of any index or the data included therein.

The S&P/TSX Composite is a product of TSX Inc., its affiliates and/or their licensors and has been licensed for use by Co-operators Financial Services Limited. Copyright © 2023 TSX Inc. All Rights reserved. Neither TSX Inc., their affiliates, nor their third-party licensors make any representation or warranty, express or implied, as to the accuracy of market representation of any index, or the context from which they are drawn, and shall not be liable for any errors, omissions or interruptions of any index or the data included therein.