CF Canlife Portfolio Funds Update

 

OEIC Fund Performance to 30/04/17

  1 Month 3 Months 1 Year 2 Years 3 Years
  % Growth Quartile % Growth Quartile % Growth Quartile % Growth Quartile % Growth Quartile
CF Canlife Portfolio III -0.11 3 2.01 3 9.93 2 10.15 2 19.99 1
CF Canlife Portfolio IV -0.19 3 2.25 3 12.32 3 12.05 2 24.95 1
CF Canlife Portfolio V -0.35 3 2.62 3 14.69 4 12.56 3 27.47 2
CF Canlife Portfolio VI -0.46 3 3.05 3 17.66 2 12.04 3 29.00 2
CF Canlife Portfolio VII -0.67 3 3.31 2 20.02 2 10.90 4 27.65 3

 Source: Morningstar, bid to bid, with net income re-invested for C share class to 30/04/17.

Life Fund Performance to 30/04/17

  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 -0.15 4 2.00 3 8.26 2  9.51 19.60 1 32.80 1
Canlife Portfolio 4 -0.12 3 2.31 3 10.34 3  10.41 2 22.71 1 43.00 1
Canlife Portfolio 5 -0.29 3 2.62 3 12.56 4 10.32 24.62 2 45.85 3
Canlife Portfolio 6 -0.34 3 3.03 2 16.20 2  10.29 25.98 1 48.25 2
Canlife Portfolio 7 -0.45 3.41 3 19.35 2  10.15 26.93 3 49.62 3

Source: Morningstar, bid to bid, with net income re-invested for series 4 Life units to 30/04/17.

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.

OEIC FUND PERFORMANCE REVIEW

Market Review

  • Global equity market returns were mixed in April, as investors digested a number of market events. These included the announcement of a snap General Election in the UK, the first round of the French Presidential election and disappointing economic numbers in the US. While many global markets performed positively in local currency terms, the rise for the pound over the month impacted sterling-based returns
  • Politics took centre stage again in the UK in April, with UK Prime Minister Theresa May calling a snap election for 8 June. May’s Conservative Party has been well ahead in polling for some time with a comfortable lead over the Labour Party. Should the Conservatives win comfortably, as current polling suggests, the stronger mandate may be helpful through the two-year Brexit negotiations with European leaders. The announcement resulted in a sharp move upwards for sterling, with the pound rising to a six-month high against the US dollar. The rise for sterling had an impact on the large number of UK-listed stocks with strong dollar-based earnings, dragging the large-cap index lower
  • The main event in Europe was the first round of French Presidential election, with Emmanuel Macron and Marine Le Pen making it through to the run-off. The result was a relief for the markets and lead to a sharp rise for European equities over the period. Economic figures coming out of Europe continue to be robust, with the Composite Purchasing Managers’ Index (PMI), indicating general economic activity, hitting a fresh six-year high and retail sales beating expectations
  • In the US, equity markets recorded gains in local currency terms (but lagged in sterling) as President Donald Trump’s administration released preliminary details on proposed tax reform. While lacking much detail, the plan included cutting the corporate tax rate to 15% and reducing of individual tax brackets from seven to three. However, US Gross Domestic Product (GDP) growth in Q1 came in at 0.7%, the slowest expansion for three years
  • The sterling rise also impacted returns in Asian equity markets, which were positive in US dollar terms. While tensions between the US and North Korea had an impact on sentiment, this was more than offset by robust economic data across the region. First quarter year-on-year growth in China came in stronger than expected at 6.9%, which was the highest growth rate since the third quarter of 2015
  • In bond markets, sterling bond markets gained ground for a third consecutive month in April. After some initial risk aversion on global geopolitical concerns, UK corporate bond markets rallied strongly late in April. European bond markets, particularly in France, also performed well after the election results. While UK government bond yields ended the month largely unchanged, spreads for corporate bonds tightened over the period.

Fund Performance Review 

  • It was a slightly negative month for the Portfolio Funds range in April
  • While UK assets performed positively or broadly flat during the month, most of the detraction resulted from our underlying allocations to international assets. While many overseas markets performed positively in local currency terms, the sharp rise for the pound over the month had a major impact for sterling-based investors
  • Our allocation to UK equities proved largely positive over the period, while UK corporate bonds gained on tighter credit spreads
  Largest contributor for April Largest detractor for April
CF Canlife Portfolio III Index Linked Gilts North American Equity
CF Canlife Portfolio IV Index Linked Gilts North American Equity
CF Canlife Portfolio V European Equity North American Equity
CF Canlife Portfolio VI UK Equity North American Equity
CF Canlife Portfolio VII UK Equity Emerging Market Equity

 

The information contained in this document is provided for use by institutional investors, professional investors and professional advisers and is not for onward distribution to, or to be relied upon by, private 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 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.

CLI00787 Expiry on 22 August 2017

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