CF Canlife Portfolio Funds Update

 

OEIC Fund Performance to 31/10/17

  1 Month 3 Months 1 Year 2 Years 3 Years
  % Growth Quartile % Growth Quartile % Growth Quartile % Growth Quartile % Growth Quartile
CF Canlife Portfolio III 0.75 3 0.63 3 3.29 3 14.46 2 18.67 2
CF Canlife Portfolio IV 1.22 3 1.25 3 5.62 3 17.79 3 24.87 2
CF Canlife Portfolio V 1.71 4 1.87 4 8.05 4 21.29 3 26.98 3
CF Canlife Portfolio VI 2.17 3 2.48 2 10.00 2 25.32 2 29.77 3
CF Canlife Portfolio VII 2.79 2 3.26 2 11.87 2 28.73 3 30.97 3

 Source: Morningstar, bid to bid, with net income re-invested for C share class to 31/10/17.

Life Fund Performance to 31/10/17

  1 Month 3 Months 1 Year 2 Years 3 Years 5 Years
  % Growth Quartile % Growth Quartile % Growth Quartile % Growth Quartile % Growth Quartile % Growth Quartile
Canlife Portfolio 3 0.68 2 0.75 1 3.00 3 12.41 2 16.71 1 29.96
Canlife Portfolio 4 1.11 3 1.35 2 5.18 3 14.85 2 20.88 2 41.16
Canlife Portfolio 5 1.54 4 1.89 3 7.28 4 18.17 4 23.15 4 46.55
Canlife Portfolio 6 1.96 2 2.47 1 9.10 2 22.93 2 25.81  3   51.92
Canlife Portfolio 7 2.41 3 3.14 1 10.90 2 27.17 2 28.04 56.26 3

Source: Morningstar, bid to bid, with net income re-invested for series 4 Life units to 31/10/17.

Past performance is not a guide to future performance. The value of investments can fall as well as rise and investors may not get back the amount invested. Income from investments may fluctuate. Currency fluctuations can also affect performance.

a synchronised recovery

Despite further geopolitical shocks, such as Catalonia’s attempted declaration of independence, markets continued to rise in October as the synchronised global economic recovery continued, despite the best efforts of politicians to derail it. This was evident even in the Eurozone, as Gross Domestic Product (GDP) growth is forecast to reach 2.2% for 2017 as a whole, the highest in a decade. Closer to home, we saw UK growth remain resilient boosted by a sharp pick-up in manufacturing, whilst the US and Japan also surprised on the upside.

Indeed it was Japan and the wider Asia Pacific region that drove equity markets higher, with many global indices currently at all-time highs. Sentiment towards Japan was boosted by the re-election of Prime Minister Shinzo Abe, with Asia more broadly being supported by strong Chinese growth and a relative easing of concerns surrounding North Korea. This performance was particularly beneficial for the CF Canlife Portfolio VII Fund, which has the highest weighting to Asia and the emerging markets.

However, corporate results were also positive in the US, UK and Europe, which translated into equity market gains. Following a difficult month for fixed income assets in September, we saw positive returns across all of our currency exposures in October, with US dollar and euro-denominated bonds contributing the most to the performance of the range. In addition, our exposure to UK commercial property continued to provide stability and an attractive yield through our diversified portfolio of assets.

Looking forward, following the Bank of England’s recent 0.25% interest rate rise, we believe there is the potential for one further hike in 2018, but as the impact of sterling’s depreciation fades inflation concerns should also ease. This should take the pressure off the Monetary Policy Committee (MPC). Therefore, we remain positive on the outlook for corporate credit, despite the slightly tighter monetary policy outlook globally. In equities, given the economic outlook the recent strength of the market makes sense, although valuations remain quite rich in the US. Therefore, we prefer more cyclical markets such as Japan and Europe.

Important Information      

Past performance is not a guide to future performance. The value of investments may fall as well as rise and investors may not get back the amount invested. Income from investments may fluctuate. Currency fluctuations can also affect performance.

The information contained in this document is provided for use by investment professionals and is not for onward distribution to, or to be relied upon by, retail investors. No guarantee, warranty or representation (express or implied) is given as to the document’s accuracy or completeness. The views expressed in this document are those of the fund manager at the time of publication and should not be taken as advice, a forecast or a recommendation to buy or sell securities. These views are subject to change at any time without notice. This document is issued for information only by Canada Life Investments. This document does not constitute a direct offer to anyone, or a solicitation by anyone, to subscribe for shares or buy units in fund(s). Subscription for shares and buying units in the fund(s) must only be made on the basis of the latest Prospectus and the Key Investor Information Document (KIID) available at www.canadalifeinvestments.com. The funds may invest in property funds that may be illiquid and subject to wide price spreads, both of which can impact the value of the funds. The value of the property is based on the opinion of a valuer and is therefore subjective.

IA sector information: CF Canlife Portfolio III Fund in IA Mixed Investment 0-35% Shares, CF Canlife Portfolio IV Fund in IA Mixed Investment 20-60% Shares, CF Canlife Portfolio V Fund in IA Mixed Investment 40-85% Shares, CF Canlife Portfolio VI Fund in IA Mixed Investment 40-85% Shares, CF Canlife Portfolio VII Fund in IA Flexible Investment.

ABI sector information: Canlife Portfolio 3 Fund in ABI Mixed Investment 0-35% Shares, Canlife Portfolio 4 Fund in ABI Mixed Investment 20-60% Shares, Canlife Portfolio 5 Fund in ABI Mixed Investment 40-85% Shares, Canlife Portfolio 6 Fund in ABI Mixed Investment 40-85% Shares, Canlife Portfolio 7 Fund in ABI Flexible Investment.

Data Source – © 2017 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Canada Life Investments is the brand for investment management activities undertaken by Canada Life Asset Management Limited, Canada Life Limited and Canada Life European Real Estate Limited. Canada Life Asset Management Limited (no. 03846821), Canada Life Limited (no.00973271) and Canada Life European Real Estate Limited (no. 03846823) are all registered in England and the registered office for all three entities is Canada Life Place, Potters Bar, Hertfordshire EN6 5BA. Canada Life Asset Management is authorised and regulated by the Financial Conduct Authority. Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

CLI001008 Expiry on 31 December 2017

 

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