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Quarterly Portfolio Fund update

What happened in financial markets during Q1 2025?

Stock and bond markets*

INDEX CLOSE Q1
S&P/TSX Composite 24,917.50 0.77%
Dow Jones Industrial Average 42,001.76 -1.28%
S&P 500 Index 5,611.85 -4.59%
NASDAQ Composite 17,299.29 -10.42%
10-year Canadian Bond Yield 2.97% -0.26%
10-year U.S. Treasury Yield 4.23% -0.35%
WTI Crude Oil (US$/barrel) $71.48 -0.33%
Canadian Dollar US$0.6950 -0.03%
Bank of Canada Prime Rate 4.95%

*Performance ending March 31, 2025. Sources: Bloomberg.

Read Investment Update weekly for the latest information on the financial markets, insights around current headlines, special reports, and more.

How Portfolio Funds performed during Q1 2025

All five Portfolio Funds experienced modest positive returns while outperforming their respective benchmarks in the first quarter of 2025. Growth portfolios slightly outperformed income portfolios due to a rebound in the international equity segment and a steady return from allocations to Canadian equities and Canadian fixed income.

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).

Co-operators Income Portfolio: low risk

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

The portfolio’s significant allocation to fixed income provided steady returns in Q1. The Co-operators BlackRock Canada Universe Bond Index Fund and Co-operators Canadian Fixed Income Fund, which account for 60% of the portfolio’s weight, both contributed over 60 basis points in absolute return. Canadian fixed income returns were positive, as interest rates continued to fall. There was considerable volatility in the bond markets in Q1, but bonds have proven to provide stability in the portfolio in times of market uncertainty.

Investment Segmentation
  • Canadian Fixed Income 78.39%
  • Canadian Equity 9.55%
  • U.S. Equity 4.91%
  • International Equity 4.74%
  • Cash & Other Net Assets 1.50%
  • Foreign Fixed Income 0.91%
Rates of Return
Guarantee level Q1 1 year 3 year 5 year 10 year Since inception
Dec. 22, 2014
75-75 1.51% 7.03% 2.17% 1.80% 1.42% 1.81%
75-100 1.48% 6.91% 2.06% 1.69% 1.31% 1.70%
100-100 1.39% 6.51% 1.67% 1.30% 0.93% 1.31%
Top 10 holdings
Co-operators Canadian Fixed Income Fund 30.10%
Co-operators BlackRock Canada Universe Bond Index Fund 30.10%
Co-operators Fidelity Canadian Bond Fund 20.06%
Co-operators Mawer Canadian Equity Fund
4.95%
Co-operators Canadian Equity Fund
4.94%
Co-operators Mawer International Equity Fund 4.91%
Co-operators U.S. Equity Fund 2.47%
Co-operators BlackRock U.S. Equity Index Fund
2.47%
The top 10 investments make up 100.00% of the fund.
Total number of investments: 8

Co-operators Balanced Income Portfolio: low to moderate risk

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

The Co-operators BlackRock Canada Universe Bond Index Fund and Co-operators Canadian Fixed Income Fund, which make up most of the fixed income allocation in the portfolio, each had strong quarterly returns that added over 50 basis points to the portfolio's total return. The Co-operators Mawer International Equity Fund had an outstanding quarter, beating its benchmark and adding 46 basis points of active return to the overall portfolio.

Defence spending increased in many countries during the quarter, as geopolitical tensions escalated. The Co-operators Mawer International Equity Fund benefited from this through its exposure to European defense-related holdings such as Rheinmetall, Thales and BAE, which all contributed to relative outperformance.

navigator-balanced-income-portfolio-investment-segmentation-pie-chart
Investment Segmentation
  • Canadian Fixed Income 59.20%
  • Canadian Equity 19.16%
  • U.S. Equity 9.85%
  • International Equity 9.50%
  • Cash & Other Net Assets 1.81%
  • Foreign Fixed Income 0.48%
Rates of Return
Guarantee level Q1 1 year 3 year 5 year 10 year Since inception
Dec. 22, 2014
75-75 1.45% 8.16% 3.49% 4.25% 2.81% 3.23%
75-100 1.41% 7.98% 3.33% 4.08% 2.64% 3.06%
100-100 1.26% 7.34% 2.71% 3.46% 2.04% 2.46%
Top 10 holdings
Co-operators Canadian Fixed Income Fund 25.17%
Co-operators BlackRock Canada Universe Bond Index Fund 25.16%
Co-operators Fidelity Canadian Bond Fund 10.06%
Co-operators Mawer Canadian Equity Fund
9.93%
Co-operators Canadian Equity Fund
9.92%
Co-operators Mawer International Equity Fund
9.85%
Co-operators U.S. Equity Fund
4.96%
Co-operators BlackRock U.S. Equity Index Fund
4.95%
The top 10 investments make up 100.00% of the fund.
Total number of investments: 8

Co-operators Balanced Growth Portfolio: low to moderate risk

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

The Co-operators Canadian Equity Fund, representing 15% of the portfolio, outperformed its benchmark and added 10 basis points of active return to the portfolio. Carrying the same 15% weight, the Co-operators Mawer International Equity Fund added 1.49% to the absolute return and 0.70% to the relative return. Substantial active outperformance from the Co-operators Mawer International Equity Fund was aided by returns from key holdings. For example, Deutsche Boerse, the German financial market exchange operator, which benefited from interest-rate volatility and increased trading volumes in Q1. Another was China's Tencent, which had a strong quarter as investors responded positively to the company's AI-related capital expenditures to drive growth and improve efficiencies.

Investment Segmentation
  • Canadian Fixed Income 39.90%
  • Canadian Equity 33.18%
  • International Equity 14.37%
  • US Equity 10.29%
  • Cash & Other Net Assets 2.22%
  • Foreign Fixed Income 0.04%
Rates of Return
Guarantee level Q1 1 year 3 year 5 year 10 year Since inception
Dec. 22, 2014
75-75 1.76% 9.45% 4.74% 6.81% 4.12% 4.56%
75-100 1.72% 9.28% 4.57% 6.63% 3.95% 4.39%
100-100 1.57% 8.62% 3.95% 6.00% 3.33% 3.77%
Top 10 holdings
Co-operators Canadian Fixed Income Fund 20.20%
Co-operators BlackRock Canada Universe Bond Index Fund 20.20%
Co-operators Canadian Equity Fund 14.92%
Co-operators Mawer International Equity Fund
14.82%
Co-operators Mawer Canadian Equity Fund 9.96%
Co-operators Fidelity True North® Fund® Fund
9.96%
Co-operators U.S. Equity Fund 4.98%
Co-operators BlackRock U.S. Equity Index Fund
4.96%
The top 10 investments make up 100.00% of the fund.
Total number of investments: 8

Co-operators Growth Portfolio: low to moderate risk

Designed to achieve long-term capital growth, with some interest income.

The portfolio’s second largest fund, the Co-operators Mawer International Equity Fund, representing 15% of the overall portfolio, drove the strong quarterly performance on both an absolute and relative basis. The Co-operators Fidelity Global Fund had a massive rebound after a tough final quarter of 2024, beating its benchmark and adding 91 basis points of active return to the overall portfolio. This was driven by the fund’s overweight exposure to the consumer discretionary sector and underweight exposure to information technology. A large positive contribution came from the fund’s holdings of Alibaba Group.

navigator-growth-portfolio-investment-segmentation-pie-chart
Investment Segmentation
  • Canadian Equity 43.53%
  • International Equity 21.12%
  • Canadian Fixed Income 20.05%
  • U.S. Equity 12.67%
  • Cash & Other Net Assets 2.61%
  • Foreign Fixed Income 0.02%
Rates of Return
Guarantee level Q1 1 year 3 year 5 year 10 year Since inception
Dec. 22, 2014
75-75 2.20% 10.25% 5.90% 9.45% 5.49% 5.99%
75-100 2.16% 10.07% 5.73% 9.28% 5.32% 5.82%
100-100 2.01% 9.42% 5.11% 8.63% 4.70% 5.19%
Top 10 holdings
Co-operators Canadian Equity Fund 19.98%
Co-operators Mawer Canadian Equity Fund 15.02%
Co-operators Mawer International Equity Fund
14.88%
Co-operators Canadian Fixed Income Fund
10.15%
Co-operators BlackRock Canada Universe Bond Index Fund
10.14%
Co-operators Fidelity True North® Fund
10.01%
Co-operators Fidelity Global Fund
9.83%
Co-operators U.S. Equity Fund
5.00%
Co-operators BlackRock U.S. Equity Index Fund
4.99%
The top 10 investments make up 100.00% of the fund.
Total number of investments: 9

Co-operators Maximum Growth Portfolio: moderate risk

Designed to achieve maximum capital growth over the long term.

The Co-operators Canadian Equity Fund turned in a strong relative outperformance of 0.64% which, combined with its 20% portfolio weighting, contributed 13 basis points of active return to the portfolio. The Co-operators Fidelity Global Fund also had a standout performance in Q1, with a relative outperformance against its benchmark that added 91 basis points of active return to the overall portfolio.

Allocations to information technology, financials and energy drove the outperformance within the Co-operators Canadian Equity Fund. Exposure to gold was also a significant driver of returns for the fund as it historically performs well in times of market uncertainty. U.S. equity exposure was a slight drag on performance as the consumer discretionary and information technology sectors of the U.S. market had double-digit negative returns through the first three months of 2025.

Investment Segmentation
  • Canadian Equity 58.22%
  • International Equity 21.23%
  • US Equity 17.89%
  • Cash & Other Net Assets 2.65%
  • Canadian Fixed Income 0.01%
Rates of Return
Guarantee level Q1 1 year 3 year 5 year 10 year Since inception
Dec. 22, 2014
75-75 1.74% 11.41% 7.06% 12.52% 6.93% 7.41%
75-100 1.69% 11.16% 6.83% 12.28% 6.70% 7.18%
100-100 1.50% 10.33% 6.02% 11.43% 5.90% 6.38%
Top 10 holdings
Co-operators Canadian Equity Fund 20.05%
Co-operators Mawer Canadian Equity Fund
15.07%
Co-operators Fidelity True North® Fund
15.06%
Co-operators Mawer International Equity Fund
14.93%
Co-operators BlackRock Canadian Equity Index Fund
10.01%
Co-operators Fidelity Global Fund 9.86%
Co-operators U.S. Equity Fund 7.52%
Co-operators BlackRock U.S. Equity Index Fund
7.50%
The top 10 investments make up 100.00% of the fund.
Total number of investments: 8

Key take-aways

Inflation ticked up through the first three months of the year and consumer price index (CPI) data, the Bank of Canada’s main inflation gauge, continues to be closely monitored by policy-makers. CPI was especially volatile in the weeks surrounding the GST/HST tax holiday which affected the price of many goods. It’s likely that Canadians will see a similar swing in fuel prices following the elimination of the federal carbon tax on April 1. Uncertainty surrounding tariffs and trade policy with the U.S. might also put upward pressure on prices in the coming months

Moving forward, it’s going to be a tough balancing act for central bankers as they monitor potential inflationary spikes, against the subsequent economic slowdown with lower consumer spending and unpredictable business activity.

Avoid trying to time the market. Professional fund managers look to maximize investment opportunities when markets go up and minimize losses when markets go down. While they’re not specifically “timing” the market, they are making real-time decisions, based on current economic conditions and long-term market prospects. Sudden moves, like pulling your investments out of the market, could work against your long-term interests. Investing – and staying invested – is the best way to capitalize on market recoveries. If you have questions, a Co-operators financial representative can 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.

Versatile Portfolios NavigatorTM is a flexible and secure investment option

Whether you’re saving for the unexpected, for retirement or for that big item on your bucket list, your path to financial success is unique. Versatile Portfolios NavigatorTM can provide you with the flexibility you need. In addition to select and diverse investment options from top, trusted investment managers, we offer a suite of portfolio funds – all actively managed and consisting of underlying funds – that help you take the guesswork out of investing.

 

Segregated funds and annuities are administered by Co-operators Life Insurance Company. Not all products are available in all provinces.

© 2025 Co-operators Life Insurance Company.
1900 Albert St., Regina, SK S4P 4K8
1-800-454-8061
www.cooperators.ca

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 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 refer to our privacy policy 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.

Returns, investment segmentation and top holdings as of March 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.

If you have questions or want to discuss your investments, please contact your authorized financial representative.

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The S&P/TSX Composite is a product of TSX Inc., its affiliates and/or their licensors and has been licensed for use by Co-operators Financial Services Limited. Copyright © 2025 TSX Inc. All Rights reserved. Neither TSX Inc., their affiliates, nor their third-party licensors make any representation or warranty, express or implied, as to the accuracy of market representation of any index, or the context from which they are drawn, and shall not be liable for any errors, omissions or interruptions of any index or the data included therein.