Quarterly Portfolio Fund 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-year US Treasury Yield 3.80% 0.83% 2.31%
WTI Crude Oil US$/barrel $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 Portfolio Funds performed during Q3 2022

In Q3, all Portfolio Funds 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 after-fees net basis. Given that fees are only applied at the portfolio level, all references to underlying fund performance are before fees gross.

Cooperators Income Portfolio low risk

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

Canadian equities, despite their low overall portfolio weighting, had the most negative influence on performance in Q3. Canadian fixed-income holdings provided the highest upside.

Investment segmentation

  • Canadian Fixed Income 77.63%
  • Canadian Equity 9.42%
  • US Equity 5.20%
  • International Equity 4.50%
  • Foreign Fixed Income 1.93%
  • Cash & Other Net Assets 1.32%
Rates of return
Guarantee level Q3 YTD 1 year 3 year 5 year Since inception
December 22, 2014
75-75 -0.04% -13.99% -12.10% -2.72% -0.01% 0.52%
75-100 -0.07% -14.06% -12.20% -2.83% -0.12% 0.41%
100-100 -0.16% -14.31% -12.53% -3.19% -0.50% 0.03%

Top 10 holdings

  • Cooperators BlackRock Canada Universe Bond Index Fund
    30.00%
  • Cooperators Canadian Fixed Income Fund
    29.99%
  • Cooperators Fidelity Canadian Bond Fund
    20.01%
  • Cooperators Mawer International Equity Fund
    5.14%
  • Cooperators Mawer Canadian Equity Fund
    5.00%
  • Cooperators Canadian Equity Fund
    4.98%
  • Cooperators BlackRock US Equity Index Fund
    2.44%
  • Cooperators US Equity Index Fund
    2.44%

The top 10 investments make up 100.00% of the fund.

Total number of investments 8

Cooperators Balanced Income Portfolio low to moderate risk

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

International and Canadian equities negatively impacted the portfolio in Q3. Canadian fixed-income assets, which account for nearly 50% of the overall portfolio weighting, outperformed their relative benchmarks and helped to offset losses.

Investment segmentation

  • Canadian Fixed Income 58.47%
  • Canadian Equity 18.84%
  • US Equity 10.40%
  • International Equity 8.99%
  • Cash & Other Net Assets 2.09%
  • Foreign Fixed Income 1.21%
Rates of return
Guarantee level Q3 YTD 1 year 3 year 5 year Since inception
December 22, 2014
75-75 -0.24% -14.71% -11.85% -1.26% 0.97% 1.67%
75-100 -0.28% -14.82% -11.99% -1.42% 0.81% 1.50%
100-100 -0.43% -15.19% -12.52% -2.00% 0.22% 0.91%

Top 10 holdings

  • Cooperators BlackRock Canada Universe Bond Index Fund
    25.00%
  • Cooperators Canadian Fixed Income Fund
    24.99%
  • Cooperators Mawer International Equity Fund
    10.27%
  • Cooperators Fidelity Canadian Bond Fund
    10.01%
  • Cooperators Mawer Canadian Equity Fund
    10.00%
  • Cooperators Canadian Equity Fund
    9.97%
  • Cooperators BlackRock US Equity Fund
    4.88%
  • Cooperators US Equity Index Fund
    4.88%

The top 10 investments make up 100.00% of the fund.

Total number of investments 8

Cooperators Balanced Growth Portfolio low to moderate risk

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

International and Canadian equities, though moderately weighted within the portfolio, detracted from Q3 returns. Canadian fixed-income holdings, representing 40% of the portfolio’s allocation, had a positive impact.

Investment segmentation

  • Canadian Fixed Income 39.26%
  • Canadian Equity 32.12%
  • International Equity 13.49%
  • US Equity 11.24%
  • Cash & Other Net Assets 3.40%
  • Foreign Fixed Income 0.49%
Rates of return
Guarantee level Q3 YTD 1 year 3 year 5 year Since inception
December 22, 2014
75-75 -0.42% -14.95% -11.34% 0.36% 2.03% 2.73%
75-100 -0.46% -15.05% -11.48% 0.20% 1.86% 2.56%
100-100 -0.61% -15.43% -12.01% -0.39% 1.26% 1.96%

Top 10 holdings

  • Cooperators BlackRock Canada Universe Bond Index Fund
    19.97%
  • Cooperators Canadian Fixed Income Fund
    19.96%
  • Cooperators Mawer International Equity Fund
    15.39%
  • Cooperators Canadian Equity Fund
    14.94%
  • Cooperators Fidelity True North Fund
    10.01%
  • Cooperators Mawer Canadian Equity Fund
    9.98%
  • Cooperators BlackRock US Equity Fund
    4.88%
  • Cooperators US Equity Index Fund
    4.87%

The top 10 investments make up 100.00% of the fund.

Total number of investments 8

Cooperators 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, despite performing as well or better than their relative benchmarks, drove the negative returns in Q3.

Investment segmentation

  • Canadian Equity 41.72%
  • Canadian Fixed Income 19.66%
  • US Equity 17.29%
  • International Equity 16.86%
  • Cash & Other Net Assets 4.22%
  • Foreign Fixed Income 0.25%
Rates of return
Guarantee level Q3 YTD 1 year 3 year 5 year Since inception
December 22, 2014
75-75 -0.89% -15.73% -11.32% 1.87% 2.96% 3.90%
75-100 -0.93% -15.83% -11.46% 1.70% 2.79% 3.74%
100-100 -1.08% -16.20% -11.99% 1.10% 2.18% 3.12%

Top 10 holdings

  • Cooperators Canadian Equity Fund
    19.92%
  • Cooperators Mawer International Equity Fund
    15.39%
  • Cooperators Mawer Canadian Equity Fund
    14.98%
  • Cooperators Fidelity True North Fund
    10.01%
  • Cooperators BlackRock Canada Universe Bond Index Fund
    9.99%
  • Cooperators Canadian Fixed Income Fund
    9.99%
  • Cooperators Fidelity Global Fund
    9.96%
  • Cooperators BlackRock US Equity Fund
    4.88%
  • Cooperators US Equity Index Fund
    4.88%

The top 10 investments make up 100.00% of the fund.

Total number of investments 9

Cooperators Maximum Growth Portfolio moderate risk

Designed to achieve maximum capital growth over the long term.

Heavy portfolio allocation toward Canadian and international equities, despite performing as well or better than their relative benchmarks, drove the negative returns in Q3.

Investment segmentation

  • Canadian Equity 56.05%
  • US Equity 22.37%
  • International Equity 16.89%
  • Cash & Other Net Assets 4.66%
  • Canadian Fixed Income 0.03%
Rates of return
Guarantee level Q3 YTD 1 year 3 year 5 year Since inception
December 22, 2014
75-75 -1.15% -15.92% -10.54% 3.77% 4.26% 5.07%
75-100 -1.20% -16.06% -10.73% 3.55% 4.03% 4.84%
100-100 -1.39% -16.53% -11.40% 2.77% 3.25% 4.06%

Top 10 holdings

  • Cooperators Canadian Equity Fund
    19.95%
  • Cooperators Mawer International Equity Fund
    15.41%
  • Cooperators Fidelity True North Fund
    15.04%
  • Cooperators Mawer Canadian Equity Fund
    15.00%
  • Cooperators BlackRock Canadian Equity Index Fund
    9.98%
  • Cooperators Fidelity Global Fund
    9.97%
  • Cooperators BlackRock US Equity Fund
    7.33%
  • Cooperators US Equity Index Fund
    7.32%

The top 10 investments make up 100.00% of the fund.

Total number of investments 8

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 Co-operators 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, 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 Cooperators Life Insurance Company “The Cooperators 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. 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 is a registered trademark of Cooperators Group Limited and is used with permission. Versatile Portfolios Navigator and Investing in your future. Together. are trademarks of Cooperators 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 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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