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 December 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 December 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 December 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 4 funds, or where noted the underlying fund. The performance and volatility figures for our Life Series 3 and Life 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 Moderately Cautious 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 Investments 0 35% shares sector The fund made a total return of 19.48% for the three years ending 31 December 2014 The fund s monthly volatility measure for the three years ending 31 December 2014 was 1.26 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 ID5953) Life Series 4 funds, (reference MKT220) Life Series 3 funds, (reference MKT254) Pension Series 4 funds, (reference 5979) 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 Moderately Cautious Figures are for the underlying fund Canlife BlackRock Consensus Figures are for 29 months for the underlying fund Canlife Investec Diversified Income Canlife JPM Cautious Managed Canlife Managed (0% 35% Shares) Canlife Managed Money Plus Canlife Portfolio Figures are for 33 months Mixed Investment 20%-60% Shares Canlife F&C MM Lifestyle Defensive Canlife F&C MM Navigator Distribution Canlife Managed (20%-60% Shares) Canlife Portfolio Flexible Investment Canlife CF Miton Cautious Multi Asset Canlife CF Miton Defensive Multi Asset UK Gilts Canlife Fixed Interest Canlife Schroder Gilt & Fixed Interest Sterling Fixed Interest Canlife Gilt & Bond Sterling Strategic Bond Canlife Artemis Strategic Bond Canlife Henderson Fixed Interest Monthly Income Canlife Invesco Perpetual Monthly Income Plus Canlife M&G Optimal Income Canlife Threadneedle Strategic Bond Sterling Corporate Bond Canlife F&C Responsible Sterling Bond Canlife Invesco Perpetual Corporate Bond Canlife JPM Sterling Corporate Bond Canlife M&G Corporate Bond Canlife M&G Short Dated Corporate Bond Figures are for the underlying fund Canlife M&G Strategic Corporate Bond Canlife Short Duration Corporate Bond Figures are for 8 months Sterling High Yield Canlife Threadneedle High Yield Bond Global Fixed Interest Canlife BlackRock Fixed Income Global Opportunities Canlife Global Bond Figures are for 31 months for the underlying fund Global High Yield Canlife Global High Yield Bond Figures are for the underlying fund UK Direct Property Canlife UK Property Money Market Canlife Money Specialist Canlife BlackRock European Absolute Alpha Canlife BlackRock UK Absolute Alpha Canlife HC Stirling House Defensive Figures are for 22 months for the underlying fund Canlife Threadneedle Absolute Return Bond

5 Volatility group 2 ABI sector / Fund name Mixed Investment (20 60% Shares) Canlife 7IM AAP Balanced Figures are for the underlying fund Canlife BlackRock Consensus Figures are for 29 months for the underlying fund Canlife CF Seneca Diversified Income Canlife F&C MM Navigator Moderate Canlife Fidelity Multi Asset Open Strategic Canlife Henderson Cautious Managed Canlife Investec Cautious Managed Canlife Jupiter Merlin Income Portfolio Canlife Managed (50% Shares) Mixed Investment 40%-85% Shares Canlife 7IM AAP Moderately Adventurous Figures are for the underlying fund Canlife BlackRock Consensus Figures are for 29 months for the underlying fund Canlife BlackRock Consensus Figures are for the underlying fund Canlife CF Seneca Diversified Growth 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 Henderson Multi-Manager Managed Canlife Invesco Perpetual Managed Income Canlife Jupiter Merlin Balanced Portfolio Canlife Managed (40% 85% Shares) Canlife Multiple Investment Canlife Portfolio Canlife Portfolio Canlife UK Equity and Bond Income Figures are for the underlying fund Flexible Investment Canlife Henderson Multi-Manager Active UK All Companies Canlife Invesco Perpetual High Income Canlife Invesco Perpetual Income UK Equity Income Canlife CF Woodford Equity Income Figures are for 6 months for the underlying fund UK Index-Linked Gilts Canlife Index Linked Sterling Strategic Bond Canlife AXA Framlington Managed Income Sterling Corporate Bond Canlife Corporate Bond Global High Yield Canlife Threadneedle Emerging Markets Bond Protected/Guaranteed Canlife Investec Multi Asset Protector Specialist Canlife HC Stirling House Balanced Figures are for 22 months for the underlying fund Canlife HC Stirling House Growth Figures are for 22 months for the underlying fund Canlife Newton Real Return Figures are for the underlying fund Canlife Total Return Figures are for the underlying fund 5

6 Volatility group 3 ABI sector / Fund name Mixed Investment (40 85% shares) Canlife Neptune Balanced Flexible Investment Canlife 7IM AAP Adventurous Figures are for the underlying fund Canlife Artemis Strategic Assets Canlife F&C MM Lifestyle Growth Canlife F&C MM Navigator Select Canlife Jupiter Merlin Growth Portfolio Canlife Portfolio UK All Companies Canlife AXA Framlington UK Select Opportunities Canlife British Blue Chip Canlife Henderson UK Index Canlife Invesco Perpetual UK Growth Canlife Investec UK Special Situations Figures are for the underlying fund Canlife M&G Recovery Canlife SVM UK Opportunities UK Equity Income Canlife Artemis Income Canlife AXA Framlington Monthly Income Canlife F&C Responsible UK Income Canlife Jupiter Income Trust Canlife Neptune Income Canlife Schroder Income Maximiser Canlife UK Equity Income UK Smaller Companies Canlife Schroder UK Smaller Companies North America Equities Canlife North American Canlife Threadneedle American Select Global Equities Canlife BlackRock Consensus Figures are for 29 months for the underlying fund Canlife F&C MM Navigator Boutiques Canlife Fidelity Global Focus Canlife Fidelity Global Special Situations Canlife Fidelity Wealthbuilder Canlife Global Equity Canlife Global Equity Income Figures are for 31 months for the underlying fund Canlife Henderson Global Equity Income Figures are for 30 months for the underlying fund Canlife Jupiter Merlin Worldwide Portfolio Canlife M&G Global Basics Canlife M&G Global Dividend Figures are for the underlying fund Canlife Newton Global Income Figures are for the underlying fun d Global Property Canlife Schroder Global Property Securities Specialist Canlife Global Infrastructure Figures are for 23 months for the underlying fund 6

7 Volatility group 4 ABI sector / Fund name UK All Companies Canlife BlackRock UK Special Situations Canlife F&C UK Alpha Canlife Fidelity Special Situations Canlife Jupiter UK Growth Canlife Schroder UK Mid Canlife UK Equity UK Smaller Companies Canlife Investec UK Smaller Companies 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 Canlife Neptune US Opportunities Asia Pacific excluding Japan Equities Canlife Asia Pacific Canlife JPM Asia Canlife Newton Asian Income Figures are for the underlying fund Japan Equities Canlife Japanese Canlife Schroder Tokyo Global Equities Canlife Allianz Global EcoTrends Canlife Investec Global Strategic Equity Canlife Neptune Global Equity Global Emerging Markets Equities Canlife Allianz BRIC Stars Canlife BlackRock Emerging Markets Canlife Henderson China Opportunities Canlife Henderson Emerging Markets Opportunities Canlife Invesco Perpetual Latin American Canlife Jupiter Emerging European Opportunities Canlife M&G Global Emerging Markets Figures are for the underlying fund Canlife Neptune Emerging Markets Canlife Neptune India Canlife Threadneedle Latin America Global Property Canlife Fidelity Global Property Commodity & Energy Canlife BlackRock Gold & General Canlife Global Resource Figures are for 23 months for the underlying fund Canlife JPM Natural Resources The source of the data is FE Analytics. All of the figures are for our Canlife Pension Series 4 funds (or where noted for the underlying fund), bid-to-bid for the three years ending 31 December

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. Commercial property is not always easy or quick to sell and if this happens we may have to postpone the encashment of units in the UK Property fund. This means that investors in property funds may not always be able to sell their investments when they choose. 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 other assets, such as equities. All investors in a property fund need to share these costs, which can be as high as 5.75% to buy and 2.0% to sell. The way we price our funds means that the unit price for the Canlife UK Property fund can be reduced by up to 7.75% if lots of investors try to sell their investments in a short space of time. 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. 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. Canada Life International Limited and CLI Institutional Limited are Isle of Man registered companies authorised and regulated by the Isle of Man Insurance and Pensions Authority. Canada Life International Assurance Limited is authorised and regulated by the Central Bank of Ireland. MKT R