Quarterly Portfolio Fund update

Read Investment Update weekly for the latest information on the financial markets, insights around current headlines, special reports, and more.

How Portfolio Funds performed during Q4 2023

In Q4, strong portfolio performance can be attributed to rising equity and bond markets. All underlying funds experienced notable positive returns in the quarter, with the U.S. Equity Fund standing out as the top performer. In most cases, the portfolio’s underlying funds outperformed their respective benchmarks.

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).

Key take-aways

Following a contraction in the quarter ending September 30, preliminary estimates show that the Canadian economy grew in December after expanding more than expected in November. Collectively, with declining consumer consumption and higher unemployment levels (approaching 6% in November), these factors suggest that the Bank of Canada’s interest-rate hikes, which began in March 2022, have begun to cool the Canadian economy and are helping ease inflationary pressure, and the economy is on track to achieve the central bank’s soft-landing goal. Equity markets are a leading indicator and they displayed tremendous resilience in 2023. Investors appear cautiously optimistic for the future of the Canadian economy, believing that the worst part of this inflationary period may now be in the past.

Focus on the long-term
If your investment goals, risk tolerance and time horizon haven’t changed, your current investing plan is likely on the right track. It’s important to look past short-term ups and downs, and focus on long-term prospects. Staying invested - and continuing to invest - throughout market fluctuations is the best way to capitalize on probable market recoveries. 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.

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 Co-operators 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 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 (“The Co-operators”) 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. 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^® is a registered trademark of Co-operators Group Limited and is used with permission. Versatile Portfolios Navigator^TM and Investing in your future. Together.^TM are trademarks of Co-operators 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 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 December 30, 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.

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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.