Quarterly Aviator Portfolios update

What happened in financial markets during Q2 2022

Stock and bond markets
Index Close Q2 YTD
S&P/TSX Composite 18,861.36 -13.84% -11.13%
Dow Jones Industrial Average 30,775.43 -11.25% -15.31%
S&P 500 Index 3,785.38 -16.45% -20.58%
NASDAQ Composite 11,028.74 -22.44% -29.51%
10-yr Canadian Bond Yield 3.23% 0.82% 1.80%
10-yr US Treasury Yield 2.97% 0.65% 1.48%
WTI Crude Oil US$/bbl 106.01 4.75% 40.50%
Canadian Dollar US$0.7768 -2.88% -1.83%
Bank of Canada Prime Rate 3.70%

Performance ending June 30, 2022. Sources Refinitiv.


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How did Aviator Portfolios perform during Q2 2022?

In Q2, all Aviator Portfolios posted negative returns, reflecting the steep losses seen across the broader financial markets. In most cases, equities suffered greater losses than fixed income over the quarter. While all funds within each portfolio ended negative, many of the funds tracked close to, or exceeded, their respective benchmarks.

Note: Rates of return for each portfolio are provided on an afterfees net basis. Given that fees are only applied at the portfolio level, all references to underlying fund performance are before fees gross.

Cooperators Aviator Income Plus Portfolio low risk

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

Canadian fixed-income holdings, which account for almost half of the portfolio, detracted significantly from overall returns in Q2. Smaller allocations towards the Cooperators Global Equity Fund and the Cooperators Preferred Share Equity Fund also had a notable negative impact on performance, despite each fund outperforming its respective benchmarks.

Investment Segmentation

  • Canadian Fixed Income 62.85%
  • Canadian Equity 15.61%
  • Foreign Fixed Income 10.89%
  • US Equity 4.79%
  • Cash & Other Net Assets 3.42%
  • International Equity 2.44%
Rates of Return
Series 100
Guarantee Level Q2 YTD 1 year Since inception
December 2, 2019
7575 -6.06% -10.15% -8.97% -0.91%
75100 -6.10% -10.22% -9.12% -1.09%
Rates of Return
Series 500
Guarantee Level Q2 YTD 1 year 3 year Since inception
October 2, 2017
7575 -6.01% -10.05% -8.77% -0.18% 0.74%
75100 -6.05% -10.13% -8.92% -0.34% 0.58%

Top 10 holdings

  • Cooperators Corporate Bond Fund
    25.05%
  • Cooperators Canadian Fixed Income Fund
    20.10%
  • Cooperators Commercial Mortgage Fund
    14.97%
  • Cooperators Preferred Share Equity Fund
    10.05%
  • Cooperators Global Equity Fund
    7.47%
  • Cooperators Bissett Canadian Equity Fund
    5.04%
  • Cooperators Bissett Short Duration Bond Fund
    4.99%
  • Cooperators Templeton Global Bond Fund
    4.90%
  • Cooperators Franklin High Income Fund
    4.90%
  • Cooperators Concentrated Canadian Equity Fund
    2.53%

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

Total number of investments 10

Cooperators Aviator Diversified Portfolio low to moderate risk

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

The moderate allocation toward the Cooperators Global Equity Fund was primarily responsible for the portfolio’s overall negative return in Q2, despite the fund outperforming its benchmark. The portfolio’s sizable holdings in the Cooperators Concentrated Canadian Equity Fund and the Canadian Fixed Income Fund were also a significant drag on its performance.

Investment Segmentation

  • Canadian Fixed Income 30.68%
  • Canadian Equity 27.61%
  • US Equity 18.47%
  • Foreign Fixed Income 11.23%
  • International Equity 8.04%
  • Cash & Other Net Assets 3.97%
Rates of Return
Series 100
Guarantee Level Q2 YTD 1 year Since inception
December 2, 2019
75-75 -8.57% -11.74% -9.31% 1.07%
75-100 -8.61% -11.81% -9.46% 0.85%
Rates of Return
Series 500
Guarantee Level Q2 YTD 1 year 3 year Since inception
October 2, 2017
75-75 -8.52% -11.65% -9.11% 1.92% 1.91%
75-100 -8.56% -11.72% -9.26% 1.75% 1.74%

Top 10 holdings

  • Cooperators Canadian Fixed Income Fund
    17.61%
  • Cooperators Concentrated Canadian Equity Fund
    12.67%
  • Cooperators Commercial Mortgage Fund
    12.49%
  • Cooperators Global Equity Fund
    12.47%
  • Cooperators Preferred Share Equity Fund
    10.06%
  • Cooperators Bissett Canadian Equity Fund
    7.57%
  • Cooperators SmallCap US Equity Index Fund
    7.43%
  • Cooperators Franklin High Income Fund
    7.36%
  • Cooperators Fidelity Global Real Estate Fund
    4.93%
  • Cooperators Templeton Global Bond Fund
    4.91%

The top 10 investments make up 97.50% of the fund.

Total number of investments 11

Cooperators Aviator Growth Portfolio moderate risk

Designed to achieve longterm capital growth, with some interest income.

The portfolio’s heavy weighting towards the Cooperators Global Equity Fund was primarily responsible for the negative return in Q2, despite the fund outperforming its benchmark. The Cooperators Small-Cap U.S. Equity Index and the Cooperators Concentrated Canadian Equity Fund also significantly detracted from portfolio performance.

Investment Segmentation

  • Canadian Equity 28.69%
  • US Equity 27.24%
  • Canadian Fixed Income 14.33%
  • Foreign Fixed Income 13.22%
  • International Equity 12.30%
  • Cash & Other Net Assets 4.22%
Rates of Return
Series 100
Guarantee Level Q2 YTD 1 year Since inception
December 2, 2019
7575 -9.78% -12.82% -9.73% 1.42%
75100 -9.82% -12.89% -9.88% 1.17%
Rates of Return
Series 500
Guarantee Level Q2 YTD 1 year 3 year Since inception
October 2, 2017
7575 -9.73% -12.72% -9.53% 2.36% 2.01%
75100 -9.77% -12.79% -9.68% 2.21% 1.85%

Top 10 holdings

  • Cooperators Global Equity Fund
    17.50%
  • Cooperators Concentrated Canadian Equity Fund
    13.20%
  • Cooperators Bissett Canadian Equity Fund
    10.12%
  • Cooperators SmallCap US Equity Index Fund
    9.94%
  • Cooperators Fidelity Global Real Estate Fund
    9.88%
  • Cooperators Franklin High Income Fund
    9.83%
  • Cooperators Commercial Mortgage Fund
    8.51%
  • Cooperators Preferred Share Equity Fund
    7.57%
  • Cooperators Corporate Bond Fund
    5.03%
  • Cooperators Templeton Global Bond Fund
    4.92%

The top 10 investments make up 96.50% of the fund.

Total number of investments 11

Key takeaways

It’s been a challenging year so far for the markets, and the second quarter offered investors no signs of a respite. Inflation continued to reach multi-decade highs around the world, and central banks (such as the Bank of Canada and the U.S. Federal Reserve) moved aggressively, raising interest rates in an attempt to stall rapidly rising consumer prices. In doing so, they may have increased the probability of a recession. These conditions weighed heavily on markets in Q2, with both bonds and equities experiencing significant declines. Commodity-heavy markets that had performed relatively well in Q2, such as Canadian equities, were also couldn’t escape Q2 unscathed, as prices for oil and precious metals became volatile toward the end of the quarter while recession fears escalated.

We know that the current market atmosphere can be alarming, but it’s important to remember that volatility is a normal part of the investing experience. Continuing to partner with us through market swings is a great way to keep your investment plan moving forward. By letting our experienced portfolio managers guide your investments through the uncertainty, you can remain focused on the things that matter most in your life. If you decide its time to review your plan, your Cooperators 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 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, refer to your Policy Statement.

If you have questions about your investments, contact your financial representative.

Aviator Portfolios are a secure and diversified investment option

Cooperators 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 hardearned 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.



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 Cooperators believes 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, Aviator Portfolios, and Cooperators Aviator are registered trademarks of Cooperators Group Limited and are used with permission. Investing in your future. Together. is a trademark of Cooperators Group Limited. Addenda Capital is a registered trademark of Addenda Capital Inc. and is used with permission. Franklin, Templeton, Franklin Bissett and Franklin Templeton are registered trademarks of Franklin Templeton Investments Corp. and are used with permission. Aviator Portfolios and Cooperators Aviator are investment products 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 June 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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