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Quarterly Portfolio Fund update

What happened in financial markets during Q1 2023?

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-yr 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.

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 Q1 2023

All Portfolio Funds turned in strong performances in Q1, reflecting bullish conditions in the broader financial markets. All funds within the portfolios contributed, with international equity funds leading the way. Fixed income funds also contributed surprisingly strong returns.

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 Income 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 weighting towards Canadian fixed income drove the positive performance in Q1. Impressively, international equities, despite representing only 5% of the portfolio weight, contributed over 10% of the overall return.     

Investment Segmentation
  • Canadian Fixed Income 77.63%
  • Canadian Equity 9.75%
  • U.S. Equity 5.36%
  • International Equity 4.46%
  • Foreign Fixed Income 1.51%
  • 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 3.23% -3.58% -0.39% 0.52% 1.01%
75-100 3.20% -3.68% -0.50% 0.41% 0.90%
100-100 3.10% -4.05% -0.88% 0.03% 0.52%
Top 10 holdings
Co-operators Canadian Fixed Income Fund 29.96%
Co-operators BlackRock Canada Universe Bond Index Fund 29.96%
Co-operators Fidelity Canadian Bond Fund 19.98%
Co-operators Canadian Equity Fund 5.03%
Co-operators Mawer Canadian Equity Fund 5.03%
Co-operators Mawer International Equity Fund 4.98%

Co-operators BlackRock U.S. Equity Index Fund

2.53%
Co-operators U.S. Equity Fund
2.53%
The top 10 investments make up 100.00% of the fund.
Total number of investments: 8

Co-operators Balanced Income Portfolio: low to moderate risk

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

Despite their low portfolio weight, International and U.S. equity funds made significant contributions to the overall positive performance in Q1, supplementing returns from the heavier Canadian fixed-income segment.

navigator-balanced-income-portfolio-investment-segmentation-pie-chart
Investment Segmentation
  • Canadian Fixed Income 58.42%
  • Canadian Equity 19.47%
  • U.S. Equity 10.69%
  • International Equity 8.92%
  • Cash & Other Net Assets 1.60%
  • Foreign Fixed Income 0.90%
Rates of Return
Guarantee level Q1 1 year 3 year 5 year Since inception
December 22, 2014
75-75 3.69% -3.37% 2.38% 1.81% 2.32%
75-100 3.65% -3.53% 2.21% 1.65% 2.15%
100-100 3.50% -4.10% 1.61% 1.05% 1.55%
Top 10 holdings
Co-operators Canadian Fixed Income Fund 24.94%
Co-operators BlackRock Canada Universe Bond Index Fund 24.93%
Co-operators Canadian Equity Fund 10.05%
Co-operators Mawer Canadian Equity Fund 10.04%
Co-operators Fidelity Canadian Bond Fund 9.98%
Co-operators Mawer International Equity Fund 9.96%
Co-operators BlackRock U.S. Equity Fund 5.05%
Co-operators U.S. Equity Index Fund 5.05%
The top 10 investments make up 100.00% of the fund.
Total number of investments: 8

Co-operators Balanced Growth Portfolio: low to moderate risk

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

International equities, while representing only 15% of the portfolio, was responsible for 25% of the total positive return in Q1, supplementing contributions from Canadian fixed income and equity holdings.

navigator-balanced-growth-portfolio-investment-segmentation-pie-chart
Investment Segmentation
  • Canadian Fixed Income 39.29%
  • Canadian Equity 32.60%
  • International Equity 13.42%
  • US Equity 11.60%
  • Cash & Other Net Assets 2.80%
  • Foreign Fixed Income 0.29%
Rates of Return
Guarantee level Q1 1 year 3 year 5 year Since inception
December 22, 2014
75-75 4.06% -3.10% 5.44% 3.24% 3.53%
75-100 4.02% -3.26% 5.26% 3.08% 3.37%
100-100 3.86% -3.84% 4.64% 2.47% 2.76%
Top 10 holdings
Co-operators Canadian Fixed Income Fund 19.93%
Co-operators BlackRock Canada Universe Bond Index Fund 19.93%
Co-operators Canadian Equity Fund 15.06%
Co-operators Mawer International Equity Fund 14.92%
Co-operators Mawer Canadian Equity Fund 10.03%
Co-operators Fidelity True North® Fund 10.03%
Co-operators BlackRock U.S. Equity Fund 5.05%
Co-operators U.S. Equity Fund 5.05%
The top 10 investments make up 100.00% of the fund.
Total number of investments: 8

Co-operators Growth Portfolio: low to moderate risk

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

Heavy portfolio allocation toward Canadian and international equities drove the positive return in Q1.

navigator-growth-portfolio-investment-segmentation-pie-chart
Investment Segmentation
  • Canadian Equity 42.46%
  • Canadian Fixed Income 19.62%
  • International Equity 17.39%
  • U.S. Equity 17.14%
  • Cash & Other Net Assets 3.25%
  • Foreign Fixed Income 0.14%
Rates of Return
Guarantee level Q1 1 year 3 year 5 year Since inception
December 22, 2014
75-75 4.47% -3.24% 8.57% 4.45% 4.86%
75-100 4.43% -3.40% 8.40% 4.28% 4.69%
100-100 4.28% -3.97% 7.75% 3.66% 4.07%
Top 10 holdings
Canadian Equity Fund 20.04%
Co-operators Mawer Canadian Equity Fund 15.02%
Co-operators Mawer International Equity Fund 14.89%
Co-operators Fidelity True North® Fund 10.03%
Co-operators Fidelity Global Fund 10.03%
Co-operators Canadian Fixed Income Fund 9.95%
Co-operators BlackRock Canada Universe Bond Index Fund 9.95%
Co-operators U.S. Equity Fund 5.05%
Co-operators BlackRock U.S. Equity Fund 5.04%
The top 10 investments make up 100.00% of the fund.
Total number of investments: 9

Co-operators Maximum Growth Portfolio: moderate risk

Designed to achieve maximum capital growth over the long term.

International equities, while representing only 15% of the portfolio, were responsible for over 20% of the total positive return in Q1, supplementing contributions Canadian and U.S. equity holdings.

navigator-maximum-growth-portfolio-investment-segmentation-pie-chart
Investment Segmentation
  • Canadian Equity 56.48%
  • US Equity 22.40%
  • International Equity 17.39%
  • Cash & Other Net Assets 3.70%
  • Canadian Fixed Income 0.03%
Rates of Return
Guarantee level Q1 1 year 3 year 5 year Since inception
December 22, 2014
75-75 4.76% -3.63% 12.31% 6.08% 6.14%
75-100 4.70% -3.83% 12.07% 5.85% 5.91%
100-100 4.50% -4.56% 11.23% 5.06% 5.12%
Top 10 holdings
Co-operators Canadian Equity Fund 20.02%
Co-operators Mawer Canadian Equity Fund 15.00%
Co-operators Fidelity True North® Fund 14.99%
Co-operators Mawer International Equity Fund 14.88%
Co-operators Fidelity Global Fund 10.01%
Co-operators BlackRock Canadian Equity Index Fund 10.00%
Co-operators BlackRock U.S. Equity Fund 7.55%
Co-operators U.S. Equity Fund 7.55%
The top 10 investments make up 100.00% of the fund.
Total number of investments: 8

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 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 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, 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 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 NavigatorTM 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 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.

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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.