CF Canlife Portfolio Funds Update

 

OEIC Fund Performance to 30/09/17

  1 Month 3 Months 1 Year 2 Years 3 Years
  % Growth Quartile % Growth Quartile % Growth Quartile % Growth Quartile % Growth Quartile
CF Canlife Portfolio III -1.05 3 0.37 2 1.53 4 15.03 2 17.76 2
CF Canlife Portfolio IV -0.75 2 0.68 2 4.41 4 18.39 3 22.77 2
CF Canlife Portfolio V -0.59 1 1.15 2 7.17 4 23.10 4 25.66 3
CF Canlife Portfolio VI -0.80 2 1.69 1 9.43 2 27.28 2 27.95 2
CF Canlife Portfolio VII -1.06 2 2.25 1 11.66 2 30.57 3 28.36 3

 Source: Morningstar, bid to bid, with net income re-invested for C share class to 30/09/17.

Life Fund Performance to 30/09/17

  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 -0.89 2 0.45 1 1.76 3 13.27 1 17.15 1 29.19
Canlife Portfolio 4 -0.58 2 0.77 2 4.28 3 16.37 2 20.48 1 40.30
Canlife Portfolio 5 -0.45 1 1.15 1 6.49 4 20.29 4 22.38  45.52
Canlife Portfolio 6 -0.61 2 1.65 1 8.50 2 25.03 2 24.51 2   50.38
Canlife Portfolio 7 -0.71 2 2.24 1 10.65 2 29.37 2 26.33 54.13 3

Source: Morningstar, bid to bid, with net income re-invested for series 4 Life units to 30/09/17.

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.

global growth remains robust

Despite newsflow from central banks suggesting that UK interest rates may rise sooner than the market expects, an escalation in the North Korean situation and the continuing uncertainties surrounding Brexit, September was a relatively quiet month in terms of market movements. Looking at the central banks first, the Bank of England’s (BoE) Monetary Policy Committee (MPC) suggested that some withdrawal of monetary stimulus is likely in the coming months. 

We do believe that yields will drift higher this year, but would caution that the BoE made similar comments in 2013, 2014 and 2015. However, given that UK Gross Domestic Product (GDP) growth since Brexit has been stronger than expected, rates returning to 0.50% is certainly warranted. This more hawkish sentiment has caused 10 year UK gilt yields to move sharply up to nearly 1.4% of late, which highlights the risk of investing in long duration assets. Within our Portfolio Funds range, our fixed income exposure is positioned short of the benchmark, including substantial exposure to the CF Canlife Short Duration Corporate Bond Fund. This was beneficial for performance in September, as were our UK equity and UK equity income holdings.

In terms of overseas news, events in Europe reminded us that political risks remain, despite the much more promising economic outlook. In Germany, we saw a big shift to the right, with the recent surge in populism threatening the stability of Angela Merkel’s coalition. This also serves to remind us that 208 days after the Dutch election, the Netherlands still has no government as coalition talks continue. Elsewhere, although the emerging markets continued to deliver strong returns, these were hampered by the strength of sterling. We do, however, continue to see China maintaining a steady growth rate of c. 6% which should support emerging market equities in the medium term.

Looking forward, the global economy continues to grow despite the best efforts of politicians to derail it. Even in the US, growth continues to hold up, despite the administration being unable to pass any of their flagship policies. We believe this will be supportive of equities over fixed income, which is why the Portfolio Funds maintain a short duration positioning. The uncertain geopolitical outlook also highlights the strength of other asset classes, such as commercial property. Our exposure here provides stability and an attractive yield through our diversified portfolio of assets.

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. 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.

CLI00955 Expiry on 15 January 2018

 

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