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Quarterly Aviator Portfolios® update

What happened in financial markets during Q4 2024?

Stock and bond markets*

INDEX CLOSE Q4 YTD
S&P/TSX Composite 24,727.94 -0.28% 17.99%
Dow Jones Industrial Average 42,544.22 -1.04% 12.88%
S&P 500 Index 5,881.63 -1.49% 23.31%
NASDAQ Composite 19,310.79 -2.09% 28.64%
10-year Canadian Bond Yield 3.23% -0.07% 0.13%
10-year U.S. Treasury Yield 4.58% -0.04% 0.70%
WTI Crude Oil (US$/barrel) $71.72 1.59% 0.10%
Canadian Dollar US$0.6952 0.19% -7.93%
Bank of Canada Prime Rate 5.45%

*Performance ending December 31, 2024. Sources: Bloomberg.

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 Q4 2024

All three portfolios within Aviator Portfolios® posted modest positive returns in the final quarter of 2024. Growth outperformed income segments due to strong returns from Canadian and U.S. equity markets. A large portion of the positive return from U.S. equities was driven by a weakening Canadian dollar against the U.S. dollar. From an overall financial market perspective, U.S. equities generated the largest positive returns, followed by Canadian equities. Global equities lagged behind with negative returns. Canadian corporate bonds notched positive returns above 1% in the quarter. Fixed income markets are still processing the growth prospects of the economy and future inflation levels, as well as the next moves from central banks around the world, as short-term interest rates have continued their descent after a series of interest-rate hikes in 2022 and 2023 in most of the major economies.

 

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.

The Co-operators Corporate Bond Fund and Co-operators Commercial Mortgage Fund were key contributors to the portfolio’s return in Q4. These two funds make up 40% of the total portfolio and steady absolute returns contributed a combined 10 basis points of active return above the benchmark. The Co-operators Global Equity Fund lagged its benchmark by 1.92% over the final three months of the year. This relative underperformance weighed on the portfolio’s total active return which was 39 basis points below the benchmark of the portfolio. One of the main detractors of excess return in the portfolio was due to global bond yields increasing. The increase in yields put pressure on the prices of bonds and longer duration exposure made these interest rate moves even more dramatic. Despite a small 5% weighting to global fixed income, there was a -21 basis-point drag on active return from this allocation during the quarter.

aviator-income-plus-portfolio-investment-segmentation-pie-chart
Investment Segmentation
  • Canadian Fixed Income 60.07%
  • Canadian Equity 15.70%
  • Foreign Fixed Income 10.01%
  • Cash & Other Net Assets 7.05%
  • U.S. Equity 4.89%
  • International Equity 2.28%
Rates of Return
Series 100
Guarantee Level Q4 1 year 3 year Since inception
Dec. 2, 2019
75-75 0.76% 7.66% 1.36% 2.48%
75-100 0.72% 7.48% 1.20% 2.30%
Rates of Return
Series 500
Guarantee Level Q4 1 year 3 year 5 year Since inception
Oct. 2, 2017
75-75 0.81% 7.90% 1.59% 2.72% 2.63%
75-100 0.77% 7.72% 1.42% 2.55% 2.47%
Top 10 holdings
Co-operators Corporate Bond Fund 25.06%
Co-operators Canadian Fixed Income Fund 20.07%
Co-operators Commercial Mortgage Fund 14.99%
Co-operators Preferred Share Equity Fund 10.06%
Co-operators Global Equity Fund 7.38%
Co-operators Templeton Global Bond Fund
 4.97%
Co-operators ClearBridge Canadian Equity Fund 4.99%
Co-operators Franklin Canadian Short Term Bond Fund
 5.00%
Co-operators Brandywine U.S. High Yield Fund
 4.99%
Co-operators Concentrated Canadian Equity Fund 2.49%
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 Co-operators Concentrated Canadian Equity Fund was a key contributor to the portfolio’s return in the final quarter of 2024. The fund was able to beat its benchmark by 0.53% which resulted in the highest amount of active return in the portfolio due in part to its 12.5% weighting. The fund produced strong returns above its benchmark due to its exposure to information technology stocks, which had a strong quarterly return just below 20%. The Canadian fixed income segment was more beneficial to the portfolio than the global fixed income allocation. Canadian yields remained relatively stable after seeing the benefits from interest-rate moves back in Q3 when Canadian bond indices returned over 4.5%. This reversion back to a lower level was to be expected as markets try to digest inflation and economic growth data to get an idea of the future path of interest rates.

aviator-diversified-portfolio-investment-segmentation-Pie-Chart
Investment Segmentation
  • Canadian Fixed Income 28.91%
  • Canadian Equity 27.67%
  • U.S. Equity 18.69%
  • Foreign Fixed Income 10.79%
  • International Equity 7.63%
  • Cash & Other Net Assets 6.31%
Rates of Return
Series 100
Guarantee Level Q4 1 year 3 year Since inception
Dec. 2, 2019
75-75 1.36% 11.27% 2.82% 4.75%
75-100 1.32% 11.09% 2.65% 4.55%
Rates of Return
Series 500
Guarantee Level Q4 1 year 3 year 5 year Since inception
Oct. 2, 2017
75-75 1.41% 11.51% 3.05% 4.89% 4.28%
75-100 1.37% 11.33% 2.88% 4.72% 4.11%
Top 10 holdings
Co-operators Canadian Fixed Income Fund 17.62%
Co-operators Global Equity Fund
 12.35%
Co-operators Commercial Mortgage Fund
 12.54%
Co-operators Concentrated Canadian Equity Fund
 12.48%
Co-operators Preferred Share Equity Fund 10.09%
Co-operators Small-Cap U.S. Equity Index Fund
 7.45%
Co-operators ClearBridge Canadian Equity Fund 7.52%
Co-operators Brandywine U.S. High Yield Fund
 7.51%
Co-operators Fidelity Global Real Estate Fund
 4.99%
Co-operators Templeton Global Bond Fund
 4.98%
The top 10 investments make up 97.53% 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 performance was mixed throughout the quarter. Significant exposure to equities (approximately 70%) accounted for a large majority of the absolute return but was unable to generate any relative outperformance compared to the portfolio’s benchmark. The Co-operators Concentrated Canadian Equity Fund was a strong driver of returns for the portfolio both in terms of absolute fund contribution and active outperformance. Some standout holdings inside the Co-operators Concentrated Canadian Equity Fund include Shopify Inc. and Brookfield Corp. The fund’s large weightings toward these holdings relative to its benchmark, coupled with their strong positive performance in the quarter, contributed to the active return of the portfolio.

aviator-growth-portfolio-investment-segmentation-pie-chart
Investment Segmentation
  • Canadian Equity 28.41%
  • U.S. Equity 27.59%
  • Foreign Fixed Income 13.11%
  • Canadian Fixed Income 12.99%
  • International Equity 11.70%
  • Cash & Other Net Assets 6.20%
Rates of Return
Series 100
Guarantee Level Q4 1 year 3 year Since inception
Dec. 2, 2019
75-75 1.48% 12.80% 3.36% 5.51%
75-100 1.44% 12.62% 3.19% 5.30%
Rates of Return
Series 500
Guarantee Level Q4 1 year 3 year 5 year Since inception
Oct. 2, 2017
75-75 1.53% 13.05% 3.59% 5.57% 4.75%
75-100 1.49% 12.87% 3.42% 5.40% 4.58%
Top 10 holdings
Co-operators Global Equity Fund 17.32%
Co-operators Concentrated Canadian Equity Fund 13.00%
Co-operators Small-Cap U.S. Equity Index Fund
 9.95%
Co-operators Fidelity Global Real Estate Fund
 10.01%
Co-operators ClearBridge Canadian Equity Fund
 10.05%
Co-operators Brandywine U.S. High Yield Fund
 10.04%
Co-operators Commercial Mortgage Fund 8.54%
Co-operators Preferred Share Equity Fund 7.59%
Co-operators Corporate Bond Fund 5.04%
Co-operators Templeton Global Bond Fund
 4.99%
The top 10 investments make up 96.53% of the fund.
Total number of investments: 11

Key take-aways

Canadian inflation data continued to cool off in the final quarter of 2024. Headline inflation as measured by the Consumer Price Index (CPI) came down on a year-over-year basis from 2.0% in October, to 1.9% in November, and reached 1.8% in December. The unemployment rate ticked up again over the course of Q4. December data put the unemployment rate at 6.7%, after reaching 6.8% in November, up from 6.5% in October. The Bank of Canada monitors this data closely as they make interest-rate decisions and aim to avoid creating a recessionary environment. Currency moves were another large part of the story in Q4 2024. Among the many factors influencing this was uncertainty swirling around potential tariffs from the U.S. government, which weakened the Canadian dollar in the last three months of 2024, as a strengthening U.S. currency pushed up the value of U.S. financial assets in Canadian dollar terms.

Global financial markets are likely to fluctuate as political developments and policy changes unfold in the U.S. Keeping your emotions in check – and staying focused on a plan that’s geared toward your goals and risk tolerance – can help you achieve long-term investing success. History shows that markets trend upward over time. Sudden moves, such as shifting into risk-adverse products like GICs and money market funds, could work against your long-term interests. Maintaining a diversified portfolio – with exposure to financial markets – is a better way to stay on track. If you have questions, 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.



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 The Co-operators Group Limited. 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 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. 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.

Returns, investment segmentation and top holdings as of December 31, 2024. 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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