Fund volatility and performance

Transcription

1 Fund volatility and performance

2 Our funds This guide provides you with details of the past performance and volatility figures for our fund range. These can be used to help you understand the investment experience you would have had if you d been invested in the funds over the last three years, up to 31 March Using the table of funds There are five headings on the table which each tell you something useful about the fund: Volatility group We have ranked the funds we offer by volatility from lowest to highest and divided them into four equal groups. Funds in group 1 have been the least volatile funds over the last three years and funds in group 4 have been the most volatile. We review the volatility every year which means that funds may move between the four groups; we don t write to investors when funds move, so you should check for the latest version of this document or our fund factsheets for the latest information. The figures on their own do not show you whether a fund was good or bad so we have also included some information on performance. ABI Sector/Fund name Within each volatility group we have put the funds in the same ABI sector together to help you compare them. For more information about what the ABI sectors mean, you can read our guide to Understanding asset types and sectors (reference MKT579) which is available on our website. Performance (% return) This figure represents the percentage return made (or lost if the figure shows a minus sign) by the fund over the last three years to 31 March Some values may be for periods of under three years (see below). The value of a fund can go down as well as up and you may get back less than you invested. The amount you get back will depend on the performance of the funds you choose, how long you invest for and any charges or withdrawals taken. Monthly volatility These figures are the average monthly volatility for each fund over the last three years to 31 March Volatility measures how much a fund s returns vary from its average return over a given time; the higher the number, the more volatile the fund price has been over these years. Some of the funds listed have been available through us for less than three years. Where this is the case we have used values for the underlying fund. If the underlying fund has not been running for three years we have added a note explaining how many months the figures cover. Generally speaking, figures for shorter periods give a less complete picture than for longer periods. We have used volatility and performance figures for Pension Series 5 funds, or where noted the underlying fund. The performance and volatility figures for our Life Series 3, Life Series 4, Life Series 5 and Pension Series 4 funds may not be the same due to the different way life and pension funds are treated for tax. 2

3 Example Volatility group 1 ABI Sector / Fund name Mixed Investment 0% 35% Shares Canlife 7IM AAP Income Figures are for the underlying fund This extract tells you; The fund was in group 1 for volatility; out of all of our funds this fund was in the least volatile group The fund is in the Mixed Investment 0% 35% shares sector The fund made a total return of 7.91% for the three years ending 31 March 2018 The fund s monthly volatility measure for the three years ending 31 March 2018 was 1.67 The tell you that the fund has not been available through Canada Life for three full years, so the figures are for the underlying fund As with all fund measures, performance returns and volatility look back at what has already happened; they do not forecast what will happen in the future and are only a guide. Other useful guides If you would like to know more about investments and the sorts of funds that we offer, then we have a range of other guides that might be of interest to you; Understanding asset types and sectors, (reference MKT579) A guide to the four main types of asset and how we group together similar types of funds. Understanding diversification, (reference MKT580) This guide explains what diversification is and why it can be useful to invest into different sorts of assets and funds. Understanding volatility, (reference MKT581) A guide to what volatility is, how we measure it using standard deviation and how it can help in understanding how a fund might behave. Understanding fund factsheets, (reference MKT611) A guide to help explain the headings and descriptions used in our fund factsheets. Monthly performance update and fund charges Every month we publish updated performance data over various time periods. Life Series 5 funds, (reference ID6780) Life Series 4 funds, (reference ID6779) Life Series 3 funds, (reference ID6778) Pension Series 4 funds, (reference ID6781) Pension Series 5 funds, (reference ID6792) Fund codes and charges, (reference MKT621) Old Canada Life funds, (reference ID6784) Manulife funds, (reference ID6783) Albany Life funds, (reference ID6782) Fund codes and charges (reference MKT621) All of our funds including charges, ABI sectors and useful fund codes (Citi, SEDOL, ISIN and MEX). All these documents are available on our website or by calling us on

4 Volatility group 1 ABI Sector / Fund name Mixed Investment 0% 35% Shares Canlife 7IM AAP Income Figures are for the underlying fund Canlife 7IM AAP Moderately Cautious Canlife 7IM Personal Injury Figures are for the underlying fund Canlife Investec Diversified Income Canlife JPM Global Macro Balanced Canlife LF Miton Defensive Multi Asset Canlife Managed (0%-35% Shares) Canlife Managed Money Plus Canlife Passive Portfolio Figures are for 5 months Canlife Portfolio Mixed Investment 20% - 60% Shares Canlife F&C MM Lifestyle Defensive Canlife F&C MM Navigator Distribution Canlife F&C MM Navigator Moderate Canlife Fidelity Multi Asset Open Strategic Canlife Janus Henderson Cautious Managed Canlife Managed (20%-60% Shares) Canlife Managed (50% Shares) Canlife Passive Portfolio Figures are for 5 months Canlife Portfolio Sterling Fixed Interest Canlife Gilt & Bond Sterling Strategic Bond Canlife Artemis Strategic Bond Canlife AXA Framlington Managed Income Canlife BlackRock Fixed Income Global Opportunities Canlife Invesco Perpetual Monthly Income Plus Canlife Janus Henderson Fixed Interest Monthly Income Canlife M&G Optimal Income Canlife Threadneedle Strategic Bond Sterling Corporate Bond Canlife Corporate Bond Canlife F&C Responsible Sterling Bond Canlife Invesco Perpetual Corporate Bond Canlife ishares Corporate Bond Index Figures are for the underlying fund Canlife JPM Sterling Corporate Bond Canlife M&G Corporate Bond Canlife M&G Short Dated Corporate Bond Canlife M&G Strategic Corporate Bond Canlife Short Duration Corporate Bond Sterling High Yield Canlife Threadneedle High Yield Bond Money Market Canlife Money Protected/Guaranteed Funds Canlife Investec Multi Asset Protector Specialist Canlife BlackRock European Absolute Alpha Canlife BlackRock UK Absolute Alpha Canlife Newton Real Return

5 Volatility group 2 ABI sector / Fund name Mixed Investment 0% - 35% Shares Canlife BlackRock Consensus Mixed Investment 20% - 60% Shares Canlife 7IM AAP Balanced Canlife BlackRock Consensus Canlife Investec Cautious Managed Canlife Jupiter Merlin Income Portfolio Canlife LF Miton Cautious Multi Asset Canlife LF Seneca Diversified Income Mixed Investment 40% - 85% Shares Canlife BlackRock Consensus Canlife BlackRock Consensus Canlife F&C MM Lifestyle Balanced Canlife F&C MM Lifestyle Cautious Canlife F&C MM Navigator Progressive Canlife Fidelity Multi Asset Open Growth Canlife Invesco Perpetual Managed Income Canlife Janus Henderson Multi-Manager Managed Canlife Jupiter Merlin Balanced Portfolio Canlife LF Seneca Diversified Growth Canlife Managed (40%-85% Shares) Canlife Multiple Investment Canlife Passive Portfolio Figures are for 5 months Canlife Passive Portfolio Figures are for 5 months Canlife Portfolio Canlife Portfolio Canlife Premier Multi Asset Growth and Income Figures are for the underlying fund Canlife UK Equity and Bond Income Flexible Investment Canlife Artemis Strategic Assets Canlife F&C MM Navigator Select Canlife Janus Henderson Multi-Manager Active Canlife Passive Portfolio Figures are for 5 months UK All Companies Canlife Invesco Perpetual High Income Canlife Invesco Perpetual Income UK Equity Income Canlife AXA Framlington Monthly Income Canlife UK Equity Income UK Gilts Canlife Fixed Interest Canlife ishares UK Gilts All Stocks Index Figures are for the underlying fund Canlife Schroder Gilt & Fixed Interest Global High Yield Canlife Global High Yield Bond UK Direct Property Canlife UK Property Specialist Canlife Strategic Return Figures are for 32 months Canlife Total Return

6 Volatility group 3 ABI sector / Fund name Mixed Investment 40% 85% shares Canlife 7IM AAP Moderately Adventurous Canlife Neptune Balanced Flexible Investment Canlife 7IM AAP Adventurous Canlife F&C MM Lifestyle Growth Canlife Jupiter Merlin Growth Portfolio Canlife Portfolio UK All Companies Canlife AXA Framlington UK Select Opportunities Canlife BlackRock UK Special Situations Canlife British Blue Chip Canlife Fidelity Special Situations Canlife Invesco Perpetual UK Growth Canlife Investec UK Special Situations Canlife ishares UK Equity Index Figures are for the underlying fund Canlife M&G Recovery Canlife SVM UK Opportunities UK Equity Income Canlife Artemis Income Canlife F&C Responsible UK Income Canlife Jupiter Income Trust Canlife LF Woodford Equity Income Canlife Neptune Income Canlife Schroder Income Maximiser Europe excluding UK Equities Canlife Artemis European Growth Canlife European Canlife Fidelity European Canlife JPM Europe Canlife SVM Continental Europe Canlife Threadneedle European Select North America Equities Canlife BlackRock US Opportunities Canlife Fidelity American Global Equities Canlife BlackRock Consensus Canlife F&C MM Navigator Boutiques Canlife Fidelity Global Focus Canlife Fidelity Wealthbuilder Canlife Global Equity Canlife Global Equity Income Canlife Janus Henderson Global Equity Income Canlife Jupiter Merlin Worldwide Portfolio Canlife Newton Global Income Global Fixed Interest Canlife Global Bond Canlife ishares Overseas Corporate Bond Index Figures are for the underlying fund Global High Yield Canlife Threadneedle Emerging Markets Bond

7 Volatility group 4 ABI sector / Fund name UK All Companies Canlife Jupiter UK Growth Canlife Schroder UK Mid Canlife UK Equity UK Smaller Companies Canlife Investec UK Smaller Companies Canlife Schroder UK Smaller Companies Europe excluding UK Equities Canlife ishares Continental European Equity Index Figures are for the underlying fund North America Equities Canlife ishares North American Equity Index Figures are for the underlying fund Canlife Neptune US Opportunities Canlife North American Canlife Threadneedle American Select Asia Pacific excluding Japan Equities Canlife Asia Pacific Canlife ishares Pacific ex-japan Equity Index Figures are for the underlying fund Canlife JPM Asia Growth Canlife Newton Asian Income Japan Equities Canlife ishares Japan Equity Index Figures are for the underlying fund Canlife Japanese Canlife Schroder Tokyo Global Equities Canlife Fidelity Global Special Situations Canlife Investec Global Strategic Equity Canlife M&G Global Dividend Canlife M&G Global Themes Canlife Neptune Global Equity Global Emerging Markets Equities Canlife Allianz Emerging Markets Equity Canlife BlackRock Emerging Markets Canlife Invesco Perpetual Latin American Canlife ishares Emerging Markets Equity Index Figures are for the underlying fund Canlife Janus Henderson China Opportunities Canlife Janus Henderson Emerging Markets Opportunities Canlife Jupiter Emerging European Opportunities Canlife M&G Global Emerging Markets Canlife Neptune Emerging Markets Canlife Neptune India Canlife Threadneedle Latin America UK Index-Linked Gilts Canlife Index Linked Canlife ishares Index Linked Gilt Index Figures are for the underlying fund Global Fixed Interest Canlife ishares Overseas Government Bond Index Figures are for the underlying fund Global Property Canlife Fidelity Global Property Canlife Schroder Global Cities Real Estate Commodity/Energy Canlife BlackRock Gold & General Canlife Global Resource Canlife JPM Natural Resources Specialist Canlife Global Infrastructure The source of the data is FE Analytics. All of the figures are for our Canlife Pension Series 5 funds (or where noted for the underlying fund), bid-to-bid for the three years ending 31 March

8 Warnings Some funds invest in assets which can be more volatile, such as emerging markets, smaller companies and commodities. This means that the price of these funds can see large movements up and down in price. Canlife UK Property, Canlife Managed (0% 35% Shares) and Canlife Managed (20% 60% Shares) Some of the costs of running the Canlife UK Property fund are taken from income received by the fund, mainly as a percentage of rents received. This will affect those funds that may invest in the UK Property fund, for example the Canlife Managed (0% 35% Shares), Canlife Managed (20% 60% Shares) and Multiple Investment funds. Property held in Canada Life property funds may not be readily saleable. This means that investors in property funds may not always be able to realise their investments when they choose. In such cases Canada Life may postpone the encashment of the units in the fund by up to six months. The value of property is generally a matter of a valuer s opinion rather than fact. Costs of buying and selling real property are generally much higher than for other types of assets. Property investments may be subject to significantly wider price spreads than bonds and equities which could affect the valuation of the fund by up to 8.00%. Canlife Investec Multi Asset Protector The 80% protection only applies to the underlying Investec fund into which the Canada Life fund invests. The Canada Life fund protection level could be higher or lower than 80% due to factors such as cashflow, investment timing and tax. Investors should note that it is intended that the protection level of 80%, of the underlying Investec Fund share price, will be provided under a derivative contract with a single counterparty, currently Deutsche Bank. If the counterparty is unable to meet its obligations under the derivative contract or where there is no derivative in place, then the Fund will not have the same level of protection and there will be a risk that the price could fall below the 80% level. If the underlying Investec Fund s share price falls, the Fund may have large allocations to cash. In this situation keeping the Fund open may no longer be in the best interests of investors. At this stage, Investec would consider winding up the Fund. There may be other circumstances which may also cause Investec to wind up the Fund such as the counterparty becoming insolvent. In the event of Investec winding up the Fund shareholders, including Canada Life, will be sent their proportionate share of the proceeds from the sale of the assets of the Fund. Canlife BlackRock UK Absolute Alpha and Canlife BlackRock European Absolute Alpha BlackRock can take a performance fee if the fund outperforms a stated benchmark. Further details of this fee are available on request. If a fee is payable it is taken daily from the unit price of the fund. Canlife Total Return The Canlife Total Return life/pension fund invests in the CF Canlife Total Return fund (the Feeder fund ) which invests in the Putnam Total Return fund (the Master fund, a sub-fund of Putnam World Trust) through a master-feeder structure. A master-feeder structure means that the CF Canlife Total Return fund permanently invests at least 85% in value of its assets in the Putnam Total Return fund. The Feeder fund will normally wholly invest in the Master fund but may at times hold up to 15% in cash or near cash. Canlife Global High Yield Bond The Canlife Global High Yield Bond life/pension fund invests in the CF Canlife Global High Yield Bond fund (the Feeder fund ) which invests in Putnam Global High Yield Bond fund (the Master fund ) through a master-feeder structure. A master-feeder structure means that the CF Canlife Global High Yield Bond fund permanently invests at least 85% in value of its assets in the Putnam Global High Yield Bond fund. The Feeder fund will normally wholly invest in the Master fund but may at times hold up to 15% in cash or near cash. Securities/stock lending Some funds operate a securities lending process under which assets held by the fund may be lent to another regulated financial institution. Securities lending is quite common and allows a fund to generate additional income from the fees it charges borrowers. There are controls to reduce the risk of any loss to the fund should the borrower become unable to return the assets. These can include obtaining high quality assets as security from the borrower and employing market agents to administer the programme and cover any losses. Canada Life closely monitors the institutions we lend to and the agents we work with. Managers of external funds are responsible for their own controls to ensure that the risks are appropriately managed. 8

9 For further information about Canada Life Limited, please visit or call us on Canada Life Limited, registered in England no Registered office: Canada Life Place, Potters Bar, Hertfordshire EN6 5BA. Telephone: Fax: Member of the Association of British Insurers. Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. MKT R