Quarterly Portfolio Fund update

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How Portfolio Funds performed during Q3 2023

In Q3, both equity and fixed income markets were under pressure, leading to broad-based declines across multiple sectors. In most cases, Portfolio Funds kept pace with their relative benchmarks, but overall returns were negative as all underlying funds experienced losses. The Co-operators Income Portfolio suffered the most from its significant exposure to falling Canadian bonds. The higher exposure to Canadian and U.S. equities in the other portfolios helped to alleviate losses.

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

Inflation and interest rates – the economic headwinds that had the biggest market impact on markets through the first half of the year – continued to sway sentiment in the third quarter. Unlike the year’s first two quarters, all four of the major North American equity indexes closed with negative returns in Q3. The Nasdaq, which is heavily weighted toward tech stocks (typically the most sensitve to interest-rate changes), fared the worst, declining 4%. Canada’s TSX, which fell 3.7% in September, ended 3% down for the quarter. Bond yields rose (and prices fell) as market expectations for interest rates to remain higher for longer solidified, and weighed heavily on fixed income investments.   

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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 September 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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