Quarterly Aviator Portfolios® update
What happened in financial markets during Q4 2025?
Stock and bond markets*
| INDEX | CLOSE | Q4 | YTD |
|---|---|---|---|
| S&P/TSX Composite | 31,712.76 | 5.63% | 28.25% |
| Dow Jones Industrial Average | 48,063.29 | 3.59% | 12.97% |
| S&P 500 Index | 6,845.50 | 2.35% | 16.39% |
| NASDAQ Composite | 23,241.99 | 2.57% | 20.36% |
| 10-year Canadian Bond Yield | 3.42% | 0.25% | 0.19% |
| 10-year U.S. Treasury Yield | 4.18% | 0.02% | -0.40% |
| WTI Crude Oil (US$/barrel) | 57.42 | -7.94% | -20.73% |
| Canadian Dollar | US$0.73 | 1.62% | 4.98% |
| Bank of Canada Prime Rate 4.45% |
*Performance ending December 31, 2025. Sources: Morningstar Direct, Bank of Canada, U.S. Department of the Treasury and CME Group.
Read our weekly market recap for the latest information on the financial markets, insights around current headlines, special reports, and more.
How Aviator Portfolios® performed during Q4 2025
Aviator Portfolios® had a modestly positive fourth quarter, led by the diversified portfolio.
Note: Rates of return for each portfolio are provided below 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 Aviator Income Plus Portfolio: low risk
Designed to achieve interest income, and the preservation and moderate growth of capital, with low levels of volatility.
The Co-operators Templeton Global Bond Fund was one of the top performing underlying funds within the portfolio, beating its benchmark by 3.58% in Q4. This was driven by exposure to South Africa and Brazil, as well as several currency positions which performed well against a weakened U.S. dollar.
The Co-operators Commercial Mortgage Fund beat its benchmark index by 0.45%, adding seven basis points (bps) of active return to the portfolio. The fund posted positive returns in a quarter when many Canadian fixed income benchmarks were negative due to lower interest rate sensitivity.
- Canadian Fixed Income 61.32%
- Canadian Equity 16.97%
- Foreign Fixed Income 10.98%
- U.S. Equity 5.21%
- Cash & Other Net Assets 3.59%
- International Equity 1.93%
Series 100
| Guarantee Level | Q4 | 1 year | 3 year | 5 year | Since inception Dec. 2, 2019 |
|---|---|---|---|---|---|
| 75-75 | 0.37% | 5.61% | 6.68% | 2.40% | 2.98% |
| 75-100 | 0.33% | 5.44% | 6.51% | 2.24% | 2.81% |
Series 500
| Guarantee Level | Q4 | 1 year | 3 year | 5 year | Since inception Oct. 2, 2017 |
|---|---|---|---|---|---|
| 75-75 | 0.42% | 5.84% | 6.92% | 2.63% | 3.02% |
| 75-100 | 0.38% | 5.67% | 6.74% | 2.46% | 2.85% |
| Top 10 holdings | |
|---|---|
| Co-operators Corporate Bond Fund | 24.99% |
| Co-operators Canadian Fixed Income Fund | 19.98% |
| Co-operators Commercial Mortgage Fund | 15.01% |
| Co-operators Preferred Share Equity Fund | 10.04% |
| Co-operators Global Equity Fund | 7.47% |
| Co-operators Templeton Global Bond Fund | 5.02% |
| Co-operators Brandywine U.S. High Yield Fund | 5.01% |
| Co-operators Franklin Canadian Short Term Bond Fund | 5.00% |
| Co-operators ClearBridge Canadian Equity Fund | 4.99% |
| Co-operators Concentrated Canadian Equity Fund | 2.49% |
| The top 10 investments make up 100.00% of the fund. Total number of investments: 10 |
|
Co-operators Aviator Diversified Portfolio: low to moderate risk
Designed to achieve both interest income and capital growth, with modest levels of volatility.
Despite a small overall portfolio weighting, the Co-operators Templeton Global Bond Fund added 18 bps of relative outperformance - the highest among all underlying funds in Q4. Active return was achieved with a combination of interest rate strategies, sovereign credit exposure and currency holdings.
The Co-operators ClearBridge Canadian Equity Fund made the second largest contribution to the portfolio’s return on an absolute basis, but the fund lagged its benchmark. The fund benefitted from stock selection within the energy and utilities sector. Wheaton Precious Metals, Bank of Nova Scotia and Headwater Exploration were some of the top performers for the quarter.
- Canadian Equity 29.33%
- Canadian Fixed Income 28.79%
- U.S. Equity 18.94%
- Foreign Fixed Income 11.56%
- International Equity 7.53%
- Cash & Other Net Assets 3.85%
Series 100
| Guarantee Level | Q4 | 1 year | 3 year | 5 year | Since inception Dec. 2, 2019 |
|---|---|---|---|---|---|
| 75-75 | 0.84% | 9.12% | 9.64% | 5.35% | 5.46% |
| 75-100 | 0.79% | 8.95% | 9.46% | 5.17% | 5.26% |
Series 500
| Guarantee Level | Q4 | 1 year | 3 year | 5 year | Since inception Oct. 2, 2017 |
|---|---|---|---|---|---|
| 75-75 | 0.89% | 9.36% | 9.88% | 5.58% | 4.88% |
| 75-100 | 0.85% | 9.18% | 9.70% | 5.40% | 4.71% |
| Top 10 holdings | |
|---|---|
| Co-operators Canadian Fixed Income Fund | 17.50% |
| Co-operators Commercial Mortgage Fund | 12.53% |
| Co-operators Global Equity Fund | 12.47% |
| Co-operators Concentrated Canadian Equity Fund | 12.46% |
| Co-operators Preferred Share Equity Fund | 10.05% |
| Co-operators Brandywine U.S. High Yield Fund | 7.52% |
| Co-operators ClearBridge Canadian Equity Fund | 7.49% |
| Co-operators Small-Cap U.S. Equity Index Fund | 7.43% |
| Co-operators Templeton Global Bond Fund | 5.03% |
| Co-operators Fidelity Global Real Estate Fund | 5.00% |
| The top 10 investments make up 97.48% of the fund. Total number of investments: 11 |
|
Co-operators Aviator Growth Portfolio: moderate risk
Designed to achieve long-term capital growth, with some interest income.
The Co-operators Fidelity Global Real Estate Fund, which represents about 10% of the portfolio, was the second-best contributor to the relative return in Q4. U.S. investments helped the fund beat its benchmark by 1.20%.
The Co-operators Templeton Emerging Markets Fund added 10 bps of active return and outpaced its benchmark by 2.73%. The fund carries a small weight within the portfolio but showed excellent returns in Q4. Stock selection in information technology, health care and consumer discretionary sectors, namely SK Hynix, Hyundai Motor and Tencent Holdings, contributed to the relative outperformance.
- Canadian Equity 30.10%
- U.S. Equity 27.77%
- Foreign Fixed Income 13.62%
- Canadian Fixed Income 13.03%
- International Equity 11.66%
- Cash & Other Net Assets 3.82%
Series 100
| Guarantee Level | Q4 | 1 year | 3 year | 5 year | Since inception Dec. 2, 2019 |
|---|---|---|---|---|---|
| 75-75 | 0.77% | 9.93% | 10.69% | 6.44% | 6.23% |
| 75-100 | 0.73% | 9.75% | 10.51% | 6.26% | 6.02% |
Series 500
| Guarantee Level | Q4 | 1 year | 3 year | 5 year | Since inception Oct. 2, 2017 |
|---|---|---|---|---|---|
| 75-75 | 0.82% | 10.17% | 10.94% | 6.67% | 5.39% |
| 75-100 | 0.78% | 9.99% | 10.76% | 6.50% | 5.22% |
| Top 10 holdings | |
|---|---|
| Co-operators Global Equity Fund | 17.47% |
| Co-operators Concentrated Canadian Equity Fund | 12.97% |
| Co-operators Brandywine U.S. High Yield Fund | 10.03% |
| Co-operators Fidelity Global Real Estate Fund | 10.01% |
| Co-operators ClearBridge Canadian Equity Fund | 9.99% |
| Co-operators Small-Cap U.S. Equity Index Fund | 9.91% |
| Co-operators Commercial Mortgage Fund | 8.52% |
| Co-operators Preferred Share Equity Fund | 7.54% |
| Co-operators Templeton Global Bond Fund | 5.03% |
| Co-operators Corporate Bond Fund | 5.01% |
| The top 10 investments make up 96.48% of the fund. Total number of investments: 11 |
|
Key take-aways
Equity markets performed well in the fourth quarter. The materials sector drove performance on Canada’s benchmark TSX once again, supported by outsized returns from gold and other precious-metal-related companies. Gold capped off an incredible year, rising nearly 60% in 2025. On Wall Street, the positive quarter capped off a third consecutive year of double-digit returns for the major stock indexes. However, U.S. equity markets lagged global peers, in part due to a weakening U.S. dollar. International equities benefitted as investors rotated away from U.S. mega-cap stocks amid concerns over elevated valuations.
In fixed income, Canadian bonds posted slightly negative returns in Q4. The Bank of Canada cut its policy interest rate by 25 basis points in October, citing the potential for global trade disruptions to lower demand for Canadian goods. Despite the central bank’s cautious outlook, economic expectations have since improved. Higher growth, continued government spending and tariff uncertainty have added some term premium to the long end of the Canadian yield curve. In the U.S., a softening labour market increased expectations for rate cuts from the Federal Reserve, which delivered two 25-basis-point rate reductions in the quarter. Continued pressure on the central bank to lower interest rates has contributed to ongoing uncertainty in bond markets, particularly as concerns over central bank independence persist,
Bottom line: Many factors influence the market. The best defence against market uncertainty is having – and sticking to – an investment strategy that’s geared toward your individual goals and objectives. If you have questions or decide it’s time to review your plan, your Co-operators financial representative is here 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.
Aviator Portfolios® are a secure and diversified investment option
Co-operators 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 hard-earned 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.
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Segregated funds and annuities are administered by Co-operators Life Insurance Company. Not all products are available in all provinces. This material is provided for informational purposes only. Please refer to your policy for applicable coverage details, limitations, and exclusions. The information contained in this communication was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This communication is provided as a general source of information and should not be considered personal investment advice or solicitation to buy or sell any investment. Co-operators® is a registered trademark of The Co-operators Group Limited and is used with permission. Aviator Portfolios® is a registered trademark of The Co-operators Group Limited. Aviator Portfolios® is an investment product which may include features or options such as segregated funds, portfolios of segregated funds or guaranteed rates. Guaranteed benefits are payable on death or maturity (reduced proportionately by withdrawals from, or investment transfers out of, the segregated funds). No guarantee is provided on 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 advisor for details. Addenda Capital® is a registered trademark of Addenda Capital Inc. and is used with permission. Franklin, Templeton, ClearBridge and Franklin Templeton® are registered trademarks of Franklin Templeton Investments Corp. and are used with permission. ClearBridge Investments and Brandywine Global are Franklin Templeton affiliated companies.
Returns, investment segmentation and top holdings as of December 31, 2025. 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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