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 U.S. 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.
Read Investment Update weekly for the latest information on the financial markets, insights around current headlines, special reports, and more.
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 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.
Canadian fixed-income holdings, which account for almost half of the portfolio, detracted significantly from overall returns in Q2. Smaller allocations towards the Co-operators Global Equity Fund and the Co-operators 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%
- U.S. 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 Dec.December 2, 2019 |
75-75 |
-6.06% |
-10.15% |
-8.97% |
-0.91% |
75-100 |
-6.10% |
-10.22% |
-9.12% |
-1.09% |
Rates of Return
Series 500
Guarantee Level |
Q2 |
YTD |
1 year |
3 year |
Since inception Oct.October 2, 2017 |
75-75 |
-6.01% |
-10.05% |
-8.77% |
-0.18% |
0.74% |
75-100 |
-6.05% |
-10.13% |
-8.92% |
-0.34% |
0.58% |
Top 10 holdings
-
Co-operators Corporate Bond Fund
25.05%
-
Co-operators Canadian Fixed Income Fund
20.10%
-
Co-operators Commercial Mortgage Fund
14.97%
-
Co-operators Preferred Share Equity Fund
10.05%
-
Co-operators Global Equity Fund
7.47%
-
Co-operators Bissett Canadian Equity Fund
5.04%
-
Co-operators Bissett Short Duration Bond Fund
4.99%
-
Co-operators Templeton Global Bond Fund
4.90%
-
Co-operators Franklin High Income Fund
4.90%
-
Co-operators Concentrated Canadian Equity Fund
2.53%
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 moderate allocation toward the Co-operators 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 Co-operators 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%
- U.S. 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 Dec.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 Oct.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
-
Co-operators Canadian Fixed Income Fund
17.61%
-
Co-operators Concentrated Canadian Equity Fund
12.67%
-
Co-operators Commercial Mortgage Fund
12.49%
-
Co-operators Global Equity Fund
12.47%
-
Co-operators Preferred Share Equity Fund
10.06%
-
Co-operators Bissett Canadian Equity Fund
7.57%
-
Co-operators Small-Cap U.S. Equity Index Fund
7.43%
-
Co-operators Franklin High Income Fund
7.36%
-
Co-operators Fidelity Global Real Estate Fund
4.93%
-
Co-operators Templeton Global Bond Fund
4.91%
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 portfolio’s heavy weighting towards the Co-operators Global Equity Fund was primarily responsible for the negative return in Q2, despite the fund outperforming its benchmark. The Co-operators Small-Cap U.S. Equity Index and the Co-operators Concentrated Canadian Equity Fund also significantly detracted from portfolio performance.
Investment Segmentation
- Canadian Equity 28.69%
- U.S. 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 Dec.December 2, 2019 |
75-75 |
-9.78% |
-12.82% |
-9.73% |
1.42% |
75-100 |
-9.82% |
-12.89% |
-9.88% |
1.17% |
Rates of Return
Series 500
Guarantee Level |
Q2 |
YTD |
1 year |
3 year |
Since inception Oct.October 2, 2017 |
75-75 |
-9.73% |
-12.72% |
-9.53% |
2.36% |
2.01% |
75-100 |
-9.77% |
-12.79% |
-9.68% |
2.21% |
1.85% |
Top 10 holdings
-
Co-operators Global Equity Fund
17.50%
-
Co-operators Concentrated Canadian Equity Fund
13.20%
-
Co-operators Bissett Canadian Equity Fund
10.12%
-
Co-operators Small-Cap U.S. Equity Index Fund
9.94%
-
Co-operators Fidelity Global Real Estate Fund
9.88%
-
Co-operators Franklin High Income Fund
9.83%
-
Co-operators Commercial Mortgage Fund
8.51%
-
Co-operators Preferred Share Equity Fund
7.57%
-
Co-operators Corporate Bond Fund
5.03%
-
Co-operators Templeton Global Bond Fund
4.92%
The top 10 investments make up 96.50% of the fund.
Total number of investments: 11
Key take-aways
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 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 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
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.
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 Co-operators Life Insurance Company (“Co-operators”) 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. Co-operators is not responsible for any loss or damage as a result of reliance on the information contained in this report. Co-operators makes no representations or warranties as to the information contained herein and does not guarantee its accuracy, timeliness, completeness or usefulness. 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 visit cooperators.ca/privacy for more information. Co-operators®, Aviator Portfolios®, and Co-operators Aviator® are registered trademarks of Co-operators Group Limited and are used with permission. Investing in your future. Together.TM is a trademark of Co-operators 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 Co-operators Aviator® are investment products 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. Ask your financial representative for details. Segregated funds and annuities are underwritten and administered by Co-operators Life Insurance Company. Not all products are available in all provinces.
If you have questions or want to discuss your investments, please contact your authorized financial representative..
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.
ANY AMOUNT THAT IS ALLOCATED TO A SEGREGATED FUND IS INVESTED AT THE RISK OF THE CONTRACT HOLDERS AND MAY INCREASE OR DECREASE IN VALUE.
The Dow Jones Industrial Average and S&P 500 ("Indices") are products of S&P Dow Jones Indices LLC, its affiliates and/or their licensors and has been licensed for use by Co-operators Financial Services Limited Copyright © 2022 S&P Dow Jones Indices LLC, its affiliates and/or their licensors. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices please visit www.spdji.com. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors shall have any liability for any errors, omissions, or interruptions of any index or the data included therein.
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 © 2022 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.