Quarterly Aviator Portfolios update

What happened in financial markets during Q3 2022

Stock and bond markets
Index Close Q3 YTD
S&P/TSX Composite 18,444.22 -2.21% -13.09%
Dow Jones Industrial Average 28,725.51 -6.66% -20.95%
S&P 500 Index 3,585.62 -5.28% -24.77%
NASDAQ Composite 10,575.62 -4.11% -32.40%
10-yr Canadian Bond Yield 3.17% -0.06% 1.74%
10-yr US Treasury Yield 3.80% 0.83% 2.31%
WTI Crude Oil US$/bbl $79.74 -24.78% 5.69%
Canadian Dollar US$0.7231 -6.91% -8.62%
Bank of Canada Prime Rate 5.45%

Performance ending September 30, 2022. Sources Refinitiv.


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How did Aviator Portfolios perform during Q3 2022?

In Q3, all Aviator Portfolios posted negative returns, with performance reflecting the overall market conditions. Like the previous quarter, equities generally suffered heavier losses than fixed-income assets. While all portfolios declined, many of the underlying funds tracked close to, or exceeded, their respective benchmarks, which helped cushion losses.

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.

Despite a low overall weighting within the portfolio, equity holdings provided significant downside pressure in Q3. Canadian fixedincome holdings, which account for almost half of the portfolio, generated positive returns.

Investment Segmentation

  • Canadian Fixed Income 61.35%
  • Canadian Equity 15.18%
  • Foreign Fixed Income 10.85%
  • Cash & Other Net Assets 5.49%
  • US Equity 4.68%
  • International Equity 2.45%
Rates of Return
Series 100
Guarantee Level Q3 YTD 1 year Since inception
December 2, 2019
7575 -0.65% -10.74% -9.59% -1.06%
75100 -0.69% -10.85% -9.74% -1.24%
Rates of Return
Series 500
Guarantee Level Q3 YTD 1 year 3 year Since inception
October 2, 2017
7575 -0.60% -10.59% -9.39% -0.61% 0.59%
75100 -0.64% -10.70% -9.54% -0.77% 0.42%

Top 10 holdings

  • Cooperators Corporate Bond Fund
    24.98%
  • Cooperators Canadian Fixed Income Fund
    19.93%
  • Cooperators Commercial Mortgage Fund
    15.08%
  • Cooperators Preferred Share Equity Fund
    9.97%
  • Cooperators Global Equity Fund
    7.45%
  • Cooperators Templeton Global Bond Fund
    5.06%
  • Cooperators Franklin High Income Fund
    5.04%
  • Cooperators Bissett Short Duration Bond Fund
    5.03%
  • Cooperators Bissett Canadian Equity Fund
    4.97%
  • 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.

Equity holdings, despite outperforming their relative benchmarks in most cases, had a negative impact on performance. The exception was the Small-Cap US Equity Index Fund, which had the most positive impact in Q3.

Investment Segmentation

  • Canadian Fixed Income 29.08%
  • Canadian Equity 26.70%
  • US Equity 18.47%
  • Foreign Fixed Income 11.39%
  • International Equity 7.99%
  • Cash & Other Net Assets 6.37%
Rates of Return
Series 100
Guarantee Level Q3 YTD 1 year Since inception
December 2, 2019
75-75 -0.97% -12.60% -10.13% 0.63%
75-100 -1.01% -12.71% -10.28% 0.41%
Rates of Return
Series 500
Guarantee Level Q3 YTD 1 year 3 year Since inception
October 2, 2017
75-75 -0.92% -12.46% -9.93% 1.40% 1.63%
75-100 -0.96% -12.56% -10.08% 1.24% 1.46%

Top 10 holdings

  • Cooperators Canadian Fixed Income Fund
    17.43%
  • Cooperators Commercial Mortgage Fund
    12.56%
  • Cooperators Concentrated Canadian Equity Fund
    12.44%
  • Cooperators Global Equity Fund
    12.40%
  • Cooperators Preferred Share Equity Fund
    9.97%
  • Cooperators SmallCap US Equity Index Fund
    7.58%
  • Cooperators Franklin High Income Fund
    7.56%
  • Cooperators Bissett Canadian Equity Fund
    7.45%
  • Cooperators Fidelity Global Real Estate Fund
    5.06%
  • Cooperators Templeton Global Bond Fund
    5.06%

The top 10 investments make up 97.51% of the fund.

Total number of investments 11

Cooperators Aviator Growth Portfolio moderate risk

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

Realestate holdings, and a heavy weighting toward equities, negatively influenced the portfolio in Q3. The SmallCap US Equity Index Fund, which accounts for 10% of the portfolio’s weight, and the Franklin High Income Fund both generated a positive return.

Investment Segmentation

  • Canadian Equity 27.72%
  • US Equity 27.22%
  • Foreign Fixed Income 13.52%
  • Canadian Fixed Income 13.22%
  • International Equity 12.16%
  • Cash & Other Net Assets 6.16%
Rates of Return
Series 100
Guarantee Level Q3 YTD 1 year Since inception
December 2, 2019
7575 -1.36% -14.00% -10.95% 0.80%
75100 -1.40% -14.11% -11.10% 0.56%
Rates of Return
Series 500
Guarantee Level Q3 YTD 1 year 3 year Since inception
October 2, 2017
7575 -1.30% -13.86% -10.76% 1.74% 1.64%
75100 -1.34% -13.97% -10.90% 1.59% 1.48%

Top 10 holdings

  • Cooperators Global Equity Fund
    17.34%
  • Cooperators Concentrated Canadian Equity Fund
    12.93%
  • Cooperators Fidelity Global Real Estate Fund
    10.12%
  • Cooperators SmallCap US Equity Index Fund
    10.10%
  • Cooperators Franklin High Income Fund
    10.07%
  • Cooperators Bissett Canadian Equity Fund
    9.92%
  • Cooperators Commercial Mortgage Fund
    8.53%
  • Cooperators Preferred Share Equity Fund
    7.47%
  • Cooperators Templeton Global Bond Fund
    5.05%
  • Cooperators Corporate Bond Fund
    4.99%

The top 10 investments make up 96.52% of the fund.

Total number of investments 11

Key takeaways

The economic headwinds that faced markets through the first half of the year persisted in Q3. July provided a small reprieve from the year’s negativity, as equity markets turned positive following a better-than-expected corporate-earnings season. From mid-August onward, however, inflation, aggressive central-bank monetary policies and recession concerns hampered growth.

When markets – and your investments – decline, it’s important to stay focused on your goals and avoid second-guessing your plan. It can be helpful to review your time horizon and your risk tolerance to maintain perspective on your long-term goals. And keep this in mind: History shows that markets tend to bounce back after periods of volatility, which means that – like sudden downturns – market gains can come fast and unexpectedly. Missing even a few of the best market-recovery days can significantly impact your success.

If you decide that it’s time to review your plan, your Cooperators financial representative is here for you. We also have resources to help you navigate market volatility, if you begin to feel anxious about your investments.

We invite you to visit the Market View page for investment basics and weekly updates on market performance. You can also sign up to have the news sent directly to you.

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 prior 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 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. 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 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.

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Returns, investment segmentation and top holdings as of September 30, 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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