CF Canlife Portfolio Funds Update

 

OEIC Fund Performance to 31/07/17

  1 Month 3 Months 1 Year 2 Years 3 Years
  % Growth Quartile % Growth Quartile % Growth Quartile % Growth Quartile % Growth Quartile
CF Canlife Portfolio III 0.48 2 0.74 3 4.46 3 12.55 1 20.08 1
CF Canlife Portfolio IV 0.65 2 1.23 3 7.31 3 14.87 2 25.03 2
CF Canlife Portfolio V 0.99 2 2.05 3 9.53 4 17.78 3 27.74 3
CF Canlife Portfolio VI 1.38 1 2.95 1 12.17 2 20.30 2 30.02 2
CF Canlife Portfolio VII 1.78 1 3.83 2 14.56 2 22.00 3 29.22 3

 Source: Morningstar, bid to bid, with net income re-invested for C share class to 31/07/17.

Life Fund Performance to 31/07/17

  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 0.38 2 0.53 4 4.23 1 11.38 1 18.84 1  30.11  1
Canlife Portfolio 4 0.53 2 0.95 3 6.64 3 12.64  2 22.01 1  42.31  1
Canlife Portfolio 5 0.81 2 1.63 4 8.43 4 14.76  23.95   3 48.09  3
Canlife Portfolio 6 1.14 1 2.48 1 10.77 2  17.58 3 25.99   2   53.23  2
Canlife Portfolio 7 1.51 1 3.24 1 13.23 2 19.96 2 27.10  3 57.14  3

Source: Morningstar, bid to bid, with net income re-invested for series 4 Life units to 31/07/17.

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.

attention turns to overseas

Following a month in which investors were focused on the UK General Election and the potential ramifications of different results, July was a much more muted month domestically. Instead, it was largely overseas news that drove market performance, including the performance of the CF Canlife Portfolio Funds range. In particular, the emerging markets outperformed, buoyed by news that the Chinese economy is still ticking along reasonably strongly with Gross Domestic Growth (GDP) growth remaining significantly above 6%. In addition, MSCI finally included Chinese ‘A’ shares in their key indices, which we believe marks an inflection point in attitudes towards China.

Elsewhere in the emerging markets, even Korea held up fairly well, shrugging off the noise surrounding further missile testing in the North. Overall, this was a boost to the performance of Portfolios 6 and 7, which maintain significant weightings to emerging market and Asian equities. Closer to home, it was pleasing to see that the UK equity market continued to remain resilient in the face of near-constant bad news – the International Monetary Fund (IMF) cut the UK’s growth forecast for example – and we saw good outperformance from the CF Canlife UK Equity Fund in July.

In the US, Russia reared its head once more, causing more controversy within the Trump administration. However, we believe that the potential paralysis of Trump’s policy agenda is the real danger, given the risk of the ‘Trump bump’ deflating. Our North American exposure is currently focused on value sectors and stocks, where we believe the more attractive valuation opportunities lie. July also saw the honeymoon period for Emmanuel Macron end in France, as his popularity fell following a stand-off with the armed forces. This demonstrated the realities that Macron must face in dealing with France’s challenges. Despite this, Europe’s economy has continued to improve and it remains our favoured market from a risk/reward perspective.

It was a more muted month in the fixed income world, but bond markets continued to grind higher and corporates once again outperformed government bonds. The CF Canlife Corporate Bond Fund performed strongly in this environment, but the best performance came from our overseas fixed income exposure, as US and European corporates outperformed their UK counterparts.

In the commercial property world, we are seeing broadly positive rental growth across the general market but some secondary locations continue to struggle. Therefore, although we are unlikely to see the same capital appreciation we have witnessed from the property market in recent years, we are still able to source yields of 5% per annum plus. This income stream is a very handy source of yield at a time of potential volatility and we believe there are still opportunities that we can benefit from as active managers, adding value through selective disposals, refurbishment and effective management.

 

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 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.

CLI00870 Expiry on 15 November 2017

 

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