Quarterly Aviator Portfolios® update
What happened in financial markets during Q3 2025?
Stock and bond markets*
| INDEX | CLOSE | Q3 | YTD |
|---|---|---|---|
| S&P/TSX Composite | 30,022.81 | 11.79% | 21.41% |
| Dow Jones Industrial Average | 46,397.89 | 5.22% | 9.06% |
| S&P 500 Index | 6,688.46 | 7.79% | 13.72% |
| NASDAQ Composite | 22,660.01 | 11.24% | 17.34% |
| 10-year Canadian Bond Yield | 3.17% | -0.11% | -0.06% |
| 10-year U.S. Treasury Yield | 4.16% | -0.08% | -0.42% |
| WTI Crude Oil (US$/barrel) | US$62.37 | -4.21% | -13.04% |
| Canadian Dollar | US$0.72 | -1.98% | 3.35% |
| Bank of Canada Prime Rate 4.70% |
*Performance ending September 30, 2025. Sources: Morningstar Direct, Bank of Canada, U.S. Department of the Treasury and CME Group.
Read Investment Update weekly for the latest information on the financial markets, insights around current headlines, special reports, and more.
How Aviator Portfolios® performed during Q3 2025
Aviator Portfolios® provided strong returns in the third quarter, led by the growth 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 best performing underlying funds within the portfolio, beating its benchmark by 2.48%. This was driven by heavy duration exposure to South Africa, Brazil, and Ghana, as well as credit exposure, which added 12 basis points (bps) of active return to the portfolio.
- Canadian Fixed Income 60.96%
- Canadian Equity 17.08%
- Foreign Fixed Income 11.27%
- U.S. Equity 5.20%
- Cash & Other Net Assets 3.33%
- International Equity 2.16%
Series 100
| Guarantee Level | Q3 | 1 year | 3 year | 5 year | Since inception Dec. 2, 2019 |
|---|---|---|---|---|---|
| 75-75 | 2.62% | 6.02% | 7.08% | 2.84% | 3.05% |
| 75-100 | 2.58% | 5.85% | 6.90% | 2.67% | 2.87% |
Series 500
| Guarantee Level | Q3 | 1 year | 3 year | 5 year | Since inception Oct. 2, 2017 |
|---|---|---|---|---|---|
| 75-75 | 2.68% | 6.25% | 7.31% | 3.06% | 3.06% |
| 75-100 | 2.64% | 6.08% | 7.13% | 2.98% | 2.89% |
| Top 10 holdings | |
|---|---|
| Co-operators Corporate Bond Fund | 24.98% |
| Co-operators Canadian Fixed Income Fund | 20.00% |
| Co-operators Commercial Mortgage Fund | 14.95% |
| Co-operators Preferred Share Equity Fund | 10.01% |
| Co-operators Global Equity Fund | 7.55% |
| Co-operators ClearBridge Canadian Equity Fund | 5.02% |
| Co-operators Templeton Global Bond Fund | 5.00% |
| Co-operators Franklin Canadian Short Term Bond Fund | 4.99% |
| Co-operators Brandywine U.S. High Yield Fund | 4.98% |
| Co-operators Concentrated Canadian Equity Fund | 2.52% |
| 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.
Given its 12.50% target weight, the Co-operators Concentrated Canadian Equity Fund was the largest contributor to the portfolio’s absolute return in Q3, with the strength of the overall Canadian equity market providing a tailwind through the quarter.
Despite its small weighting in the overall portfolio of 5%, the Co-operators Templeton Global Bond Fund beat its benchmark by the widest margin among all the portfolio’s underlying funds. This was achieved with a combination of interest-rate strategies and sovereign credit exposure.
- Canadian Equity 29.66%
- Canadian Fixed Income 28.78%
- U.S. Equity 19.11%
- Foreign Fixed Income 11.46%
- International Equity 7.78%
- Cash & Other Net Assets 3.21%
Series 100
| Guarantee Level | Q3 | 1 year | 3 year | 5 year | Since inception Dec. 2, 2019 |
|---|---|---|---|---|---|
| 75-75 | 5.18% | 9.69% | 10.41% | 6.42% | 5.55% |
| 75-100 | 5.14% | 9.51% | 10.23% | 6.24% | 5.35% |
Series 500
| Guarantee Level | Q3 | 1 year | 3 year | 5 year | Since inception Oct. 2, 2017 |
|---|---|---|---|---|---|
| 75-75 | 5.24% | 9.93% | 10.66% | 6.65% | 4.93% |
| 75-100 | 5.20% | 9.75% | 10.47% | 6.47% | 4.75% |
| Top 10 holdings | |
|---|---|
| Co-operators Canadian Fixed Income Fund | 17.45% |
| Co-operators Concentrated Canadian Equity Fund | 12.57% |
| Co-operators Global Equity Fund | 12.55% |
| Co-operators Commercial Mortgage Fund | 12.43% |
| Co-operators Preferred Share Equity Fund | 9.98% |
| Co-operators Small-Cap U.S. Equity Index Fund | 7.52% |
| Co-operators ClearBridge Canadian Equity Fund | 7.51% |
| Co-operators Brandywine U.S. High Yield Fund | 7.46% |
| Co-operators Fidelity Global Real Estate Fund | 5.05% |
| Co-operators Templeton Global Bond Fund | 4.99% |
| The top 10 investments make up 97.51% 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 Small-Cap U.S. Equity Index Fund was the primary contributor to the absolute return in Q3 2025. Small-Cap U.S. equities had a strong quarter and were supported by U.S. central bank rate cuts. The underlying index broke through to a new all-time high which was last recorded in November 2021.
The Co-operators Templeton Emerging Markets Fund carries a small weight within the portfolio but showed excellent returns in Q3, outpacing its benchmark. This can be attributed to stock selection in India, Taiwan and China.
- Canadian Equity 30.43%
- U.S. Equity 28.00%
- Foreign Fixed Income 13.64%
- Canadian Fixed Income 13.03%
- International Equity 12.01%
- Cash & Other Net Assets 2.89%
Series 100
| Guarantee Level | Q3 | 1 year | 3 year | 5 year | Since inception Dec. 2, 2019 |
|---|---|---|---|---|---|
| 75-75 | 6.16% | 10.70% | 11.89% | 7.83% | 6.36% |
| 75-100 | 6.11% | 10.52% | 11.71% | 7.65% | 6.15% |
Series 500
| Guarantee Level | Q3 | 1 year | 3 year | 5 year | Since inception Oct. 2, 2017 |
|---|---|---|---|---|---|
| 75-75 | 6.22% | 10.94% | 12.13% | 8.06% | 5.46% |
| 75-100 | 6.17% | 10.76% | 11.95% | 7.88% | 5.29% |
| Top 10 holdings | |
|---|---|
| Co-operators Global Equity Fund | 17.55% |
| Co-operators Concentrated Canadian Equity Fund | 13.06% |
| Co-operators Fidelity Global Real Estate Fund | 10.09% |
| Co-operators Small-Cap U.S. Equity Index Fund | 10.02% |
| Co-operators ClearBridge Canadian Equity Fund | 10.00% |
| Co-operators Brandywine U.S. High Yield Fund | 9.93% |
| Co-operators Commercial Mortgage Fund | 8.44% |
| Co-operators Preferred Share Equity Fund | 7.48% |
| Co-operators Templeton Global Bond Fund | 4.98% |
| Co-operators Corporate Bond Fund | 4.97% |
| The top 10 investments make up 96.52% of the fund. Total number of investments: 11 |
|
Key take-aways
Canadian equity markets had a strong quarter, supported by the materials sector as gold prices surged. The financials sector, which accounts for about one-third of Canada’s benchmark S&P/TSX Composite, also performed well. U.S. equity markets continued to climb as the AI boom showed no signs of slowing down. International equity markets stabilized in Q3 as the global trade outlook improved. Canadian bonds posted positive returns, supported by Bank of Canada rate cuts, falling short-term yields, and tighter credit spreads which offset weak Gross Domestic Product and rising unemployment.
A professionally managed portfolio provides advantages in an uncertain economic environment. No matter the news headlines or market conditions, a professionally managed portfolio comes with one major benefit: diversification. With a diverse portfolio, you have access to several different asset classes, which lessens your risk if one sector suffers heavy losses. Portfolio managers have the flexibility and knowledge to adjust allocations when market conditions change. If you have questions about your investments, a Co-operators financial representative is always ready 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 September 30, 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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