A portfolio fund aiming to provide a balance between income and long-term growth.
Is this fund right for you?
- You want investment income and you want your money to grow over time.
- You want to invest in both equity funds and fixed-income funds (up to 40 per cent).
- You're comfortable with a low to medium level of risk.
Risk Rating
How is the fund invested?
(as of December 31, 2024)
Asset allocation (%)
|
Name |
Percent |
|
Domestic Bonds |
29.8 |
|
US Equity |
24.6 |
|
International Equity |
17.3 |
|
Canadian Equity |
16.4 |
|
Foreign Bonds |
7.9 |
|
Cash and Equivalents |
2.5 |
|
Income Trust Units |
0.6 |
|
Other |
0.9 |
Geographic allocation (%)
|
Name |
Percent |
|
Canada |
48.7 |
|
United States |
30.2 |
|
United Kingdom |
2.4 |
|
Ireland |
1.6 |
|
France |
1.6 |
|
Japan |
1.4 |
|
Multi-National |
1.4 |
|
China |
1.4 |
|
Taiwan |
1.3 |
|
Other |
10.0 |
Sector allocation (%)
|
Name |
Percent |
|
Fixed Income |
38.5 |
|
Financial Services |
12.5 |
|
Technology |
12.1 |
|
Consumer Services |
5.2 |
|
Healthcare |
4.5 |
|
Consumer Goods |
4.2 |
|
Industrial Goods |
4.1 |
|
Industrial Services |
4.0 |
|
Energy |
3.6 |
|
Other |
11.3 |
Growth of $10,000
(since inception)
Data not available based on date of inception
Fund details
(as of December 31, 2024)
| Top holdings |
% |
| Canada Life Canadian Core Fixed Inc Fd I |
17.4 |
| Cash and Cash Equivalents |
2.0 |
| Microsoft Corp |
1.3 |
| Apple Inc |
1.3 |
| Royal Bank of Canada |
1.3 |
| Amazon.com Inc |
1.2 |
| Canada Life Global Inflation-Linked Fixed Income S |
1.0 |
| Canada Government 3.00% 01-Jun-2034 |
0.9 |
| NVIDIA Corp |
0.8 |
| iShares MSCI India ETF (INDA) |
0.8 |
| Total allocation in top holdings |
28.0 |
| Portfolio characteristics |
|
| Standard deviation |
9.0% |
| Dividend yield |
2.0% |
| Yield to maturity |
- |
| Duration (years) |
- |
| Coupon |
4.5% |
| Average credit rating |
Not rated |
Understanding returns
Annual compound returns (%)
| 1 MO |
3 MO |
YTD |
1 YR |
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| 3 YR |
5 YR |
10 YR |
INCEPTION |
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Calendar year returns (%)
|
2024 |
2023 |
2022 |
2021 |
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|
2020 |
2019 |
2018 |
2017 |
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Range of returns over five years
(February 1, 2001 - February 28, 2025)
| Best return |
Best period end date |
Worst return |
Worst period end date |
|
9.6% |
Feb. 2014 |
-1.4% |
Feb. 2009 |
| Average return |
% of periods with positive returns |
Number of positive periods |
Number of negative periods |
|
4.1% |
96.1% |
221 |
9 |
Q4 2024 Fund Commentary
Market commentary
Global equities rose over the fourth quarter of 2024 and outperformed global bonds, which declined (all returns in Canadian-dollar terms on a total return basis). Interest-rate cuts from major central banks supported investor sentiment. Concerns about tariffs and an expected slowdown in rate cuts from the U.S. Federal Reserve Board (Fed) limited the positive sentiment towards risk assets.
A decline in the Canadian dollar added to the Canadian-dollar returns of global equity markets. The U.S. equity market posted a high-single-digit return, with the consumer discretionary sector outperforming. Canadian equities rose but underperformed U.S. equities. Information technology was the strongest-performing sector in the Canadian equity market.
Europe, Australasia and the Far East equities declined, underperforming Canadian and U.S. equities. France and Switzerland underperformed. Emerging markets equities also declined, with China and India underperforming.
The FTSE Canada Universe Bond Index posted a small loss. As sovereign yields increased, government bond prices declined and underperformed corporate bonds, which posted a gain.
Corporate bonds benefited from narrowing credit spreads (the difference in yield between corporate and government bonds with similar maturities). Energy bonds posted the largest increase in the corporate sector. High-yield bond prices rose on a total return basis and outperformed investment-grade corporate bonds.
Global bond yields rose and global bond prices fell. The Fed, Bank of Canada, European Central Bank and Bank of England lowered their policy interest rates. The yield on 10-year Government of Canada bonds rose by 27 basis points (from 2.95% to 3.22%). Sovereign yields in the U.S., the U.K., Germany and Japan also rose.
Performance
The Portfolio’s underlying Canadian equity funds underperformed, which had the most negative impact on performance. The Portfolio’s underlying foreign equity funds also had a negative impact.
An overweight to corporate bonds, including high-yield debt, had a positive impact on performance given narrowing credit spreads and a higher running yield. A shorter-than-benchmark duration (lower sensitivity to interest rates) was positive for performance as interest rates rose. The Portfolio’s allocation to U.S. equity funds was also positive as the U.S. outperformed other regions and because of the strong performance of growth-oriented holdings.
Active management within Canadian and foreign equity strategies was negative for performance. The Portfolio’s allocation to off-benchmark small- and mid-capitalization equities also had a negative impact.
The Portfolio’s exposure to Canada Life U.S. All Cap Growth Fund had a positive impact. Growth stocks outperformed over the quarter. Stock selection in information technology and underweight exposure to consumer staples was also positive. Exposure to Canada Life Emerging Markets Large Cap Equity Fund had a positive impact because of strong stock selection in China and South Korea.
The Portfolio’s exposure to Canada Life Global Small-Mid Cap Equity Fund had a negative impact on performance. Sector positioning and stock selection were negative, and small-cap companies broadly underperformed large-cap stocks. Exposure to Canada Life Global Growth Opportunities Fund was also negative because of stock selection in the information technology sector.
The sub-advisor increased the Portfolio’s relative exposure to U.S. equities from an underweight position to neutral.
The sub-advisor decreased relative exposure to emerging market equities to reduce the previous overweight position.
Outlook
The global economy is expected to grow in 2025 at a similar rate to 2024. The sub-advisor believes tariffs and other trade policies are a key risk, and ongoing negotiations could be top-of-mind for markets. Regions with strained growth prospects include China, because of structural growth issues, and the eurozone, which may be stuck in a period of very low growth.
The sub-advisor expects geopolitics to drive investor sentiment. However, the sub-advisor sees U.S.-China tensions as a more enduring geopolitical issue that could be felt over years rather than months.
In fixed income, the sub-advisor expects higher interest rates to weigh on government bonds globally. Central bank policy rates are likely to settle at rates higher than originally expected, in the sub-advisor’s view. In equity markets, the sub-advisor believes U.S. equities are poised for continued strength even though valuations are more compelling elsewhere.
Despite two consecutive calendar years of above-average gains from stock and bond markets, the sub-advisor believes these markets still offer potential in 2025. The sub-advisor views its commitment to diversification across asset classes, as not only a critical safeguard against near-term market declines, but more importantly as a long-term driver of compelling risk-adjusted performance.