Quarterly Aviator Portfolios® update
Stock and bond markets*
| INDEX | CLOSE | Q2 | YTD |
|---|---|---|---|
| S&P/TSX Composite | 34,856.99 | 6.37% | 9.92% |
| Dow Jones Industrial Average | 52,319.20 | 12.90% | 8.85% |
| S&P 500 Index | 7,499.36 | 14.87% | 9.55% |
| NASDAQ Composite | 26,213.72 | 21.41% | 12.79% |
| 10-year Canadian Bond Yield | 3.38% | -0.08% | -0.04% |
| 10-year U.S. Treasury Yield | 4.44% | 0.14% | 0.26% |
| Canadian Dollar | US$0.70 | -1.91% | -3.55% |
| Bank of Canada Prime Rate 4.45% |
*Performance ending June 30, 2026. Sources: Morningstar Direct, Bank of Canada and U.S. Department of the Treasury.
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 Q2 2026
Aviator Portfolios® generated positive returns across the board in the second quarter. The growth portfolio outpaced the diversified and income portfolios, despite underperformance within North American equity allocations.
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 the standout performer in the second quarter. The fund outperformed its benchmark, contributing 16 basis points (bps) of active return despite its modest 5% weight in the portfolio. Holding emerging market sovereign bonds was beneficial as yields fell in many regions.
The Co-operators Canadian Fixed Income Fund was also a strong performer. The fund represents about 20% of the portfolio weight and tends to steer the overall return of the portfolio. In Q2, the fund was able to beat its benchmark return by 0.2%.
- Canadian Fixed Income 60.44%
- Canadian Equity 17.00%
- Foreign Fixed Income 11.55%
- U.S. Equity 5.26%
- Cash & Other Net Assets 3.60%
- International Equity 2.15%
Series 100
| Guarantee Level | Q2 | 1 year | 3 year | 5 year | Since inception Dec. 2, 2019 |
|---|---|---|---|---|---|
| 75-75 | 2.92% | 5.55% | 6.72% | 2.69% | 3.14% |
| 75-100 | 2.88% | 5.38% | 6.55% | 2.52% | 2.96% |
Series 500
| Guarantee Level | Q2 | 1 year | 3 year | 5 year | Since inception Oct. 2, 2017 |
|---|---|---|---|---|---|
| 75-75 | 2.97% | 5.78% | 6.96% | 2.92% | 3.14% |
| 75-100 | 2.93% | 5.61% | 6.78% | 2.75% | 2.98% |
| Top 10 holdings | |
|---|---|
| Co-operators Corporate Bond Fund | 24.97% |
| Co-operators Canadian Fixed Income Fund | 19.98% |
| Co-operators Commercial Mortgage Fund | 14.97% |
| Co-operators Preferred Share Equity Fund | 10.01% |
| Co-operators Global Equity Fund | 7.62% |
| Co-operators Templeton Global Bond Fund | 5.00% |
| Co-operators Brandywine U.S. High Yield Fund | 4.99% |
| Co-operators Franklin Canadian Short Term Bond Fund | 4.99% |
| Co-operators ClearBridge Canadian Equity Fund | 4.98% |
| 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.
The Co-operators Templeton Emerging Markets Fund outpaced its benchmark by 8.41% and contributed 21 bps to the portfolio’s active return in Q2 — the most of any fund — despite its modest 2.5% weight. This was due in large part to the fund's heavy exposure to memory chip and semiconductor manufacturing stocks.
The Co-operators Global Equity Fund, the portfolio's largest holding, contributed 2.29% to the overall return despite lagging its benchmark. Security selection was a factor, with weak returns from holdings in the technology and healthcare sectors offsetting gains from allocations to industrials and materials. The fund's exposure to energy stocks created headwinds as oil prices fell after spiking earlier in the quarter.
- Canadian Equity 29.14%
- Canadian Fixed Income 28.81%
- U.S. Equity 19.29%
- Foreign Fixed Income 11.20%
- International Equity 7.71%
- Cash & Other Net Assets 3.85%
Series 100
| Guarantee Level | Q2 | 1 year | 3 year | 5 year | Since inception Dec. 2, 2019 |
|---|---|---|---|---|---|
| 75-75 | 6.42% | 12.89% | 10.74% | 5.35% | 6.04% |
| 75-100 | 6.37% | 12.71% | 10.55% | 5.17% | 5.84% |
Series 500
| Guarantee Level | Q2 | 1 year | 3 year | 5 year | Since inception Oct. 2, 2017 |
|---|---|---|---|---|---|
| 75-75 | 6.48% | 13.14% | 10.98% | 5.58% | 5.36% |
| 75-100 | 6.43% | 12.95% | 10.80% | 5.40% | 5.19% |
| Top 10 holdings | |
|---|---|
| Co-operators Canadian Fixed Income Fund | 17.48% |
| Co-operators Global Equity Fund | 12.69% |
| Co-operators Commercial Mortgage Fund | 12.47% |
| Co-operators Concentrated Canadian Equity Fund | 12.45% |
| Co-operators Preferred Share Equity Fund | 10.00% |
| Co-operators Small-Cap U.S. Equity Index Fund | 7.51% |
| Co-operators Brandywine U.S. High Yield Fund | 7.49% |
| Co-operators ClearBridge Canadian Equity Fund | 7.46% |
| Co-operators Templeton Global Bond Fund | 5.00% |
| Co-operators Fidelity Global Real Estate Fund | 4.95% |
| The top 10 investments make up 97.50% 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 Templeton Emerging Markets Fund outpaced its benchmark by 8.41% and contributed 29 bps to the portfolio’s active return in Q2 — the most of any fund — despite its modest 3.5% weight. This was due in large part to the fund's heavy exposure to memory chip and semiconductor manufacturing stocks.
The Co-operators Small-Cap U.S. Equity Index Fund was another bright spot within the portfolio this quarter. This passive fund, which tracks an index of 2,000 smaller sized U.S. companies, contributed 2.31% to the portfolio's absolute return. Performance was driven by a combination of AI capital expenditure acceleration, improved earnings expectations, resilient U.S. economic growth and broadening market participation.
- Canadian Equity 29.82%
- U.S. Equity 28.37%
- Foreign Fixed Income 13.16%
- Canadian Fixed Income 13.02%
- International Equity 11.79%
- Cash & Other Net Assets 3.84%
Series 100
| Guarantee Level | Q2 | 1 year | 3 year | 5 year | Since inception Dec. 2, 2019 |
|---|---|---|---|---|---|
| 75-75 | 8.22% | 15.61% | 12.23% | 6.32% | 7.00% |
| 75-100 | 8.18% | 15.42% | 12.04% | 6.14% | 6.79% |
Series 500
| Guarantee Level | Q2 | 1 year | 3 year | 5 year | Since inception Oct. 2, 2017 |
|---|---|---|---|---|---|
| 75-75 | 8.28% | 15.86% | 12.47% | 6.55% | 6.03% |
| 75-100 | 8.24% | 15.67% | 12.29% | 6.37% | 5.86% |
| Top 10 holdings | |
|---|---|
| Co-operators Global Equity Fund | 17.77% |
| Co-operators Concentrated Canadian Equity Fund | 12.94% |
| Co-operators Small-Cap U.S. Equity Index Fund | 10.01% |
| Co-operators Brandywine U.S. High Yield Fund | 9.98% |
| Co-operators ClearBridge Canadian Equity Fund | 9.95% |
| Co-operators Fidelity Global Real Estate Fund | 9.89% |
| Co-operators Commercial Mortgage Fund | 8.47% |
| Co-operators Preferred Share Equity Fund | 7.50% |
| Co-operators Templeton Global Bond Fund | 5.00% |
| Co-operators Corporate Bond Fund | 4.99% |
| The top 10 investments make up 96.50% of the fund. Total number of investments: 11 |
|
Key take-aways
Canadian, U.S. and international equities delivered strong returns in the second quarter despite ongoing geopolitical tensions and periodic market volatility. In Canada, financial stocks helped drive gains, while weakness in energy and materials shares followed a pullback in oil and gold prices. South of the border, U.S. equities rebounded sharply as investor confidence in artificial intelligence-related opportunities improved, supported by continued demand for the infrastructure and technology required to power AI innovation.
International and emerging market equities also posted strong results as improving risk sentiment and growing demand for AI-related hardware and semiconductor capacity supported markets globally. Meanwhile, fixed income markets continued to provide stability and income, although bond yields experienced periods of volatility as investors weighed inflation concerns against expectations for future monetary policy decisions. Central banks in Canada and the U.S. kept policy rates unchanged during the quarter, choosing to look through energy-driven price pressures while assessing their potential impact on underlying inflation and economic growth.
Bottom line: While markets may react to shifting global events and short term volatility, a diversified, professionally managed portfolio is designed to help navigate the changing conditions. Staying focused on your long term goals can help you stay confident and well-positioned for future opportunities as markets evolve. A Co-operators financial representative is always ready to help if you have questions or would like to review your plan.
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.
© 2026 Co-operators Life Insurance Company.
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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 June 30, 2026. 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.
If you have questions or want to discuss your investments, please contact your authorized financial representative. In Quebec, a licensed insurance advisor is a Financial Security Advisor or a Representative.