Quarterly Portfolio Fund 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-year GoC Yield 3.23% 0.82% 1.80%
10-year 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 Portfolio Funds perform during Q2 2022?

In Q2, all Portfolio Funds 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.

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.

Cooperators Income 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 nearly 80% of the portfolio’s overall weight, were primarily responsible for the portfolio’s negative return in Q2.

Investment segmentation

  • Canadian Fixed Income 77.48%
  • Canadian Equity 9.54%
  • US Equity 5.13%
  • International Equity 4.37%
  • Foreign Fixed Income 2.15%
  • Cash & Other Net Assets 1.33%
Rates of return
Guarantee level Q2 YTD 1 year 3 year 5 year Since inception
December 22, 2014
75-75 -7.58% -13.96% -12.53% -2.42% -0.34% 0.55%
75-100 -7.60% -14.00% -12.63% -2.53% -0.45% 0.43%
100-100 -7.69% -14.17% -12.96% -2.90% -0.83% 0.05%

Top 10 holdings

  • Cooperators Canadian Fixed Income Fund
    30.02%
  • Cooperators BlackRock Canada Universe Bond Index Fund
    29.99%
  • Cooperators Fidelity Canadian Bond Fund
    20.00%
  • Cooperators Mawer Canadian Equity Fund
    5.03%
  • Cooperators Canadian Equity Fund
    5.03%
  • Cooperators Mawer International Equity Fund
    5.00%
  • Cooperators BlackRock US Equity Index Fund
    2.47%
  • Cooperators US Equity Index Fund
    2.46%

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

Total number of investments 8

Cooperators Balanced Income Portfolio low to moderate risk

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

Negative performance from the Canadian fixed-income segment and the international equity segment drove the overall negative return in Q2.

Investment segmentation

  • Canadian Fixed Income 58.39%
  • Canadian Equity 19.11%
  • US Equity 10.25%
  • International Equity 8.73%
  • Cash & Other Net Assets 2.15%
  • Foreign Fixed Income 1.37%
Rates of return
Guarantee level Q2 YTD 1 year 3 year 5 year Since inception
December 22, 2014
75-75 -8.84% -14.50% -11.77% -0.87% 0.83% 1.76%
75-100 -8.87% -14.57% -11.91% -1.03% 0.67% 1.59%
100-100 -9.01% -14.82% -12.44% -1.61% 0.07% 1.00%

Top 10 holdings

  • Cooperators Canadian Fixed Income Fund
    25.02%
  • Cooperators BlackRock Canada Universe Bond Index Fund
    25.00%
  • Cooperators Mawer Canadian Equity Fund
    10.07%
  • Cooperators Canadian Equity Fund
    10.07%
  • Cooperators Fidelity Canadian Bond Fund
    10.00%
  • Cooperators Mawer International Equity Fund
    9.99%
  • Cooperators BlackRock US Equity Fund
    4.93%
  • Cooperators US Equity Index Fund
    4.92%

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

Total number of investments 8

Cooperators Balanced Growth Portfolio low to moderate risk

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

The portfolio’s allocation toward international equity detracted the most from its performance in Q2. While the heavy weighting towards Canadian equity also contributed to the negative return, each fund in the segment significantly outperformed its respective benchmark, helping cushion the negative impact overall.

Investment segmentation

  • Canadian Fixed Income 39.30%
  • Canadian Equity 32.84%
  • International Equity 13.11%
  • US Equity 11.03%
  • Cash & Other Net Assets 3.13%
  • Foreign Fixed Income 0.59%
Rates of return
Guarantee level Q2 YTD 1 year 3 year 5 year Since inception
December 22, 2014
75-75 -9.98% -14.59% -10.80% 0.87% 2.07% 2.88%
75-100 -10.01% -14.66% -10.95% 0.71% 1.90% 2.71%
100-100 -10.15% -14.91% -11.48% 0.11% 1.30% 2.11%

Top 10 holdings

  • Cooperators Canadian Fixed Income Fund
    20.02%
  • Cooperators BlackRock Canada Universe Bond Index Fund
    20.00%
  • Cooperators Canadian Equity Fund
    15.09%
  • Cooperators Mawer International Equity Fund
    14.99%
  • Cooperators Mawer Canadian Equity Fund
    10.07%
  • Cooperators Fidelity True North Fund
    9.98%
  • Cooperators BlackRock US Equity Fund
    4.93%
  • Cooperators US Equity Index Fund
    4.92%

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

Total number of investments 8

Cooperators Growth Portfolio low to moderate risk

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

The portfolio’s heavy weighting toward Canadian equity was primarily responsible for the negative return in Q2, despite each fund in the segment significantly outperforming its benchmark. The allocations to international equity also detracted.

Investment segmentation

  • Canadian Equity 42.62%
  • Canadian Fixed Income 19.68%
  • US Equity 16.83%
  • International Equity 16.80%
  • Cash & Other Net Assets 3.78%
  • Foreign Fixed Income 0.29%
Rates of return
Guarantee level Q2 YTD 1 year 3 year 5 year Since inception
December 22, 2014
75-75 -11.20% -14.97% -10.16% 2.59% 3.28% 4.16%
75-100 -11.24% -15.04% -10.30% 2.42% 3.11% 3.99%
100-100 -11.37% -15.29% -10.83% 1.81% 2.50% 3.38%

Top 10 holdings

  • Cooperators Canadian Equity Fund
    20.15%
  • Cooperators Mawer Canadian Equity Fund
    15.13%
  • Cooperators Mawer International Equity Fund
    15.01%
  • Cooperators Canadian Fixed Income Fund
    10.02%
  • Cooperators BlackRock Canada Universe Bond Index Fund
    10.01%
  • Cooperators Fidelity True North Fund
    9.99%
  • Cooperators Fidelity Global Fund
    9.83%
  • Cooperators BlackRock US Equity Fund
    4.94%
  • Cooperators US Equity Index Fund
    4.92%

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

Total number of investments 9

Cooperators Maximum Growth Portfolio moderate risk

Designed to achieve maximum capital growth over the long term.

The Canadian equity segment was largely responsible for the portfolio’s negative return in Q2. The portfolio’s moderate exposure to international equities also hampered performance.

Investment segmentation

  • Canadian Equity 57.13%
  • US Equity 21.83%
  • International Equity 16.81%
  • Cash & Other Net Assets 4.20%
  • Canadian Fixed Income 0.03%
Rates of return
Guarantee level Q2 YTD 1 year 3 year 5 year Since inception
December 22, 2014
75-75 -12.56% -14.95% -8.80% 4.69% 4.81% 5.40%
75-100 -12.60% -15.04% -9.00% 4.46% 4.58% 5.18%
100-100 -12.77% -15.36% -9.68% 3.68% 3.80% 4.39%

Top 10 holdings

  • Cooperators Canadian Equity Fund
    20.17%
  • Cooperators Mawer Canadian Equity Fund
    15.14%
  • Cooperators Mawer International Equity Fund
    15.02%
  • Cooperators Fidelity True North Fund
    15.00%
  • Cooperators BlackRock Canadian Equity Index Fund
    10.04%
  • Cooperators Fidelity Global Fund
    9.83%
  • Cooperators BlackRock US Equity Fund
    7.41%
  • Cooperators US Equity Index Fund
    7.39%

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

Total number of investments 8

Key takeaways

It’s been a challenging year for the markets so far, 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 quickly 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, 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, please refer to your Policy Statement.

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

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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 “The Cooperators believe 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 is a registered trademark of Cooperators Group Limited and is used with permission. Versatile Portfolios Navigator and Investing in your future. Together. are trademarks of Cooperators 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 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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