Fund overview & performance

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Canada Life Segregated Funds

Canada Life Global Strategic Income Fund

Fund profile and commentary

Fund fact

March 31, 2025

A diversified fund that invests globally and aims to generate growth and income.

Is this fund right for you?

You want your investment to boost your income returns.
You want to invest in Canadian and foreign bonds and Canadian and foreign income-oriented stocks.
You're comfortable with a low to medium level of risk.

Risk Rating

How is the fund invested? (as of January 31, 2025)

Asset allocation (%)

	Name	Percent
	US Equity	35.6
	Foreign Bonds	32.8
	International Equity	21.6
	Domestic Bonds	6.2
	Cash and Equivalents	3.8

Geographic allocation (%)

	Name	Percent
	United States	58.8
	Canada	9.1
	United Kingdom	6.0
	Germany	5.7
	Japan	2.8
	France	2.3
	Ireland	2.1
	Switzerland	1.8
	Belgium	1.6
	Other	9.8

Sector allocation (%)

	Name	Percent
	Fixed Income	38.9
	Technology	14.9
	Financial Services	9.7
	Healthcare	6.1
	Consumer Goods	5.7
	Industrial Goods	4.5
	Consumer Services	4.0
	Industrial Services	3.8
	Cash and Cash Equivalent	3.8
	Other	8.6

Growth of $10,000 (since inception)

Data not available based on date of inception

Fund details (as of January 31, 2025)

Top holdings	%
Cash and Cash Equivalents	3.8
United States Treasury 4.38% 15-May-2034	3.4
United States Treasury 3.88% 15-Aug-2034	2.8
Microsoft Corp	2.6
Apple Inc	2.5
United States Treasury 4.25% 30-Jun-2029	2.2
United States Treasury 3.50% 15-Feb-2033	2.0
Amazon.com Inc	1.9
JPMorgan Chase & Co	1.8
Meta Platforms Inc Cl A	1.7
Total allocation in top holdings	24.7

Portfolio characteristics
Standard deviation	8.5%
Dividend yield	1.9%
Yield to maturity	4.7%
Duration (years)	7.5
Coupon	4.0%
Average credit rating	AA-

Understanding returns

Annual compound returns (%)

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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 (January 1, 2016 - March 31, 2025)

Best return	Best period end date	Worst return	Worst period end date
5.8%	March 2025	0.2%	Oct. 2022

Average return	% of periods with positive returns	Number of positive periods	Number of negative periods
2.7%	100.0%	52	0

Q4 2024 Fund Commentary

Market commentary

U.S. political events influenced fixed income markets over the quarter. Following the U.S. election, investors switched focus to the incoming U.S. administration’s potential policies on deficit spending and tariffs. Potential tariffs led the Canadian dollar to decline by more than 6% against the U.S. dollar.

Early in the quarter, anticipated rate cuts from the U.S. Federal Reserve Board (Fed) led to expectations that the U.S. economy could manage inflation without risking a recession. The Fed subsequently cut interest rates by 50 basis points (bps). By December, however, the Fed reset expectations for fewer rate cuts in 2025.

Long-term Canadian bond yields rose with U.S. yields. However, short-term yields remained unchanged, despite the Bank of Canada (BoC) reducing its policy rate to 3.25%. In December, BoC policymakers signalled that further 50-bp rate cuts were less likely.

Canadian and U.S. equity markets rose over the quarter, while global equity market performance was mixed.

The European Central Bank (ECB) reduced policy rates to 3.0% in December. The Bank of Japan maintained an accommodative stance but hinted at policy shifts in 2025. Japanese equities outperformed European and other Asian markets as exporters took advantage of a weak Japanese yen. China’s recovery remained subdued, even with tax cuts, because stimulus measures failed to shift growth trajectories.

Performance

The Fund’s relative exposure to Broadcom Inc. had a positive impact on performance. Relative exposure to Glencore PLC had a negative impact.

Broadcom Inc. benefited from strong semiconductor results and software division growth. Increased revenues from high-performance chips used in artificial intelligence helped drive growth. Shares of Glencore PLC declined because of changing expectations about the timeline of near-term cash returns and potential mergers-and-acquisitions activity in coking coal.

At the sector level, stock selection in energy had a positive impact on performance. Underweight exposure to the consumer discretionary sector had a negative impact.

In fixed income, the Fund’s relative exposure to term loans was positive for performance as loans generally performed better than corporate and government bonds. Relative exposure to longer-term federal government bonds had a negative impact on performance as interest rates declined.

Regionally, overweight exposure to Taiwan had a positive impact on performance, while stock selection in the U.S. had a negative impact.

During the quarter, the sub-advisor added equity holdings in Morgan Stanley and Techtronic Industries Co. Ltd. to the Fund. Morgan Stanley has over US$5 trillion in assets under management. The sub-advisor expects the company to benefit from increased mergers-and-acquisitions activity under the new U.S. administration. Techtronic Industries Co. Ltd. was added for its leadership in power tool battery technologies and expanding market opportunities in outdoor equipment and construction gear.

The sub-advisor increased Weatherford International Ltd. (Bermuda) (8.63%, 2030/04/30) because of its exposure to the growing energy services industry and positive return potential.

The sub-advisor sold an equity holding in Sika AG in favour of Techtronic Industries Co. Ltd. The sub-advisor believes market opportunities in outdoor equipment and construction gear are expanding for Techtronic.

The sub-advisor decreased exposure to Government of South Africa (8.88%, 2035/02/28) because of potential volatility and macroeconomic uncertainties.

Outlook

The new U.S. administration’s potential 25% tariffs pose significant risks for Canada, in the sub-advisor’s view, and could be inflationary. The sub-advisor believes uncertainty around long-term rates, with 30-year Canadian yields significantly lower than U.S. yields, could make Canadian bonds less attractive to investors.

U.S.–Canadian trade tensions could also affect Canadian corporate bond spreads (the difference in yield between corporate and government bonds). Until more clarity emerges, the sub-advisor remains focused on improving credit quality and liquidity rather than increasing exposure to corporate bonds.

In global markets, the sub-advisor believes resilient U.S. economic growth may slow because of higher interest rates and a weaker labour market. China’s growth could decelerate without new stimulus, while Japan could experience gradual economic growth and real wage gains. The Fed’s slow approach to lowering interest rates contrasts with the ECB’s more aggressive plan.

The sub-advisor believes this backdrop requires a careful balancing of the risks and opportunities created by moderating inflation, growth uncertainty, and evolving trade and immigration policies.

(September 30, 2024)

Mackenzie Investments

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Contact information

Toll free: 1-844-730-1633

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Summary

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Total returns performance

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Legal disclaimers

The commentaries on the company specific information and purchases and sales were provided by the fund manager. Canada Life Investment Management Ltd. will not be liable for any loss, or damages whatsoever, whether directly or indirectly incurred, arising out of the use or misuse of errors or omissions in any information contained in this commentary. The data provided in this commentary is for information purposes only and, except where otherwise indicated, is current as of Dec. 31, 2024.

The views expressed in this commentary are those of fund manager as at the date of publication and are subject to change without notice. This commentary is presented only as a general source of information and is not intended as a solicitation to buy or sell specific investments, nor is it intended to provide tax or legal advice. Prospective investors should review the offering documents relating to any investment carefully before making an investment decision and should ask their Advisor for advice based on their specific circumstances.

The content of this commentary (including facts, views, opinions, recommendations, descriptions of or references to, products or securities) is not to be used or construed as investment advice, as an offer to sell or the solicitation of an offer to buy, or an endorsement, recommendation or sponsorship of any entity or security cited. Although we endeavour to ensure its accuracy and completeness, we assume no responsibility for any reliance upon it.

This document may contain forward-looking information which reflect our or third-party current expectations or forecasts of future events. Forward-looking information is inherently subject to, among other things, risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed herein. These risks, uncertainties and assumptions include, without limitation, general economic, political and market factors, interest and foreign exchange rates, the volatility of equity and capital markets, business competition, technological change, changes in government regulations, changes in tax laws, unexpected judicial or regulatory proceedings and catastrophic events. Please consider these and other factors carefully and not place undue reliance on forward-looking information. The forward-looking information contained herein is current only as of Dec. 31, 2024. There should be no expectation that such information will in all circumstances be updated, supplemented or revised whether as a result of new information, changing circumstances, future events or otherwise.

There can be no assurance that the Fund’s return or volatility targets will be met, or met over any particular time horizon. Targeted returns and volatility should be evaluated over the time period indicated and not over shorter periods. Targeted returns are not actual performance and should not be relied upon as an indication of actual or future performance.

Canada Life Mutual Funds are managed by Canada Life Investment Management Ltd. offered exclusively through Quadrus Investment Services Ltd., IPC Investment Corporation and IPC Securities Corporation. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.

Canada Life Mutual Funds, Canada Life Investment Management and design, and Canada Life and design are trademarks of The Canada Life Assurance Company.

^Deferred Sales Charge (DSC) and Low Load Deferred Sales Charge (LSC) purchase options is closed to new investments given regulatory bans put in place for these purchase options that came into effect June 1, 2022.

^†Soft capped - Contributions are no longer accepted to new investors.

^‡Hard capped - Contributions are no longer accepted.

Distribution of the chart, history standard and short-term reports are not permitted without including the fund profile long-term report. For money market fund reports: The current yield is an annualized historical yield based on the seven-day period ended on the date noted above and does not represent an actual one-year return. Reports produced using this website are for information purposes only. Canada Life Investment Management Ltd., and their affiliates, representatives, and third party content providers do not warrant the accuracy, completeness, or timeliness of this website or any content, and shall not be responsible for investment decisions, damages, or other losses resulting from the use of this website or its content. The only true report on unit values is the periodic statement prepared and sent by the mutual fund company. Important information about Canada Life Mutual Funds is found in Fund Facts. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and does not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Money market fund units are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There can be no assurances that the fund will be able to maintain its net asset value per unit at a constant amount or that the full amount of your investment in the fund will be returned to you. Past performance of the funds may not be repeated. Canada Life Mutual Funds are managed by Canada Life Investment Management Ltd. offered exclusively through Quadrus Investment Services Ltd., IPC Investment Corporation and IPC Securities Corporation.

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