Fund volatility
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 2014.
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 2014. Some values may be for periods of under three years (see ‘Notes’ 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 2014. 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.
Notes
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.
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 Notes 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 www.canadalife.co.uk or by calling us on 08456 060708.
Volatility group 1
ABI Sector / Fund name Performance Monthly Notes
(% return) volatility
Mixed Investment (0–35% Shares)
Canlife 7IM AAP Moderately Cautious 19.48 1.26 Figures are for the underlying fund
Volatility group 1
ABI Sector / Fund name Performance Monthly Notes
(% return) volatility
Mixed Investment 0%-35% Shares
Canlife 7IM AAP Moderately Cautious 19.48 1.26 Figures are for the underlying fund
Canlife BlackRock Consensus 35 10.83 1.28 Figures are for 29 months for the underlying fund Canlife Investec Diversified Income 19.18 1.17
Canlife JPM Cautious Managed 10.81 1.19 Canlife Managed (0%–35% Shares) 21.24 1.11 Canlife Managed Money Plus 7.64 0.46
Canlife Portfolio 3 18.84 1.11 Figures are for 33 months
Mixed Investment 20%-60% Shares
Canlife F&C MM Lifestyle Defensive 28.61 1.47 Canlife F&C MM Navigator Distribution 30.99 1.31 Canlife Managed (20%-60% Shares) 34.13 1.49 Canlife Portfolio 4 29.64 1.45
Flexible Investment
Canlife CF Miton Cautious Multi Asset 1.63 1.08 Canlife CF Miton Defensive Multi Asset 2.25 1.24
UK Gilts
Canlife Fixed Interest 7.94 1.38 Canlife Schroder Gilt & Fixed Interest 7.21 1.46
Sterling Fixed Interest
Canlife Gilt & Bond 15.68 1.39
Sterling Strategic Bond
Canlife Artemis Strategic Bond 29.89 1.08 Canlife Henderson Fixed Interest Monthly Income 34.74 1.40 Canlife Invesco Perpetual Monthly Income Plus 41.40 1.35 Canlife M&G Optimal Income 27.45 1.11 Canlife Threadneedle Strategic Bond 24.88 1.13
Sterling Corporate Bond
Canlife F&C Responsible Sterling Bond 21.59 1.43 Canlife Invesco Perpetual Corporate Bond 32.23 1.32 Canlife JPM Sterling Corporate Bond 25.96 1.35 Canlife M&G Corporate Bond 23.16 1.30
Canlife M&G Short Dated Corporate Bond 8.48 0.32 Figures are for the underlying fund Canlife M&G Strategic Corporate Bond 22.50 1.29
Canlife Short Duration Corporate Bond 2.00 0.22 Figures are for 8 months
Sterling High Yield
Canlife Threadneedle High Yield Bond 33.95 1.26
Global Fixed Interest
Canlife BlackRock Fixed Income Global Opportunities 0.88 1.38
Canlife Global Bond -1.21 1.47 Figures are for 31 months for the underlying fund
Global High Yield
Canlife Global High Yield Bond 27.99 1.41 Figures are for the underlying fund
UK Direct Property
Canlife UK Property 30.85 0.80
Money Market
Canlife Money 0.03 0.00
Specialist
Canlife BlackRock European Absolute Alpha 8.78 0.90 Canlife BlackRock UK Absolute Alpha 8.67 1.44
Canlife HC Stirling House Defensive 6.62 1.29 Figures are for 22 months for the underlying fund Canlife Threadneedle Absolute Return Bond -0.86 0.85
Volatility group 2
ABI sector / Fund name Performance Monthly Notes
(% return) volatility
Mixed Investment (20–60% Shares)
Canlife 7IM AAP Balanced 27.97 1.75 Figures are for the underlying fund
Canlife BlackRock Consensus 60 15.65 1.51 Figures are for 29 months for the underlying fund Canlife CF Seneca Diversified Income 25.57 1.56
Canlife F&C MM Navigator Moderate 30.47 1.53 Canlife Fidelity Multi Asset Open Strategic 23.23 1.55 Canlife Henderson Cautious Managed 36.06 1.59 Canlife Investec Cautious Managed 16.04 1.76 Canlife Jupiter Merlin Income Portfolio 21.91 1.78
Canlife Managed (50% Shares) 16.66 1.53
Mixed Investment 40%-85% Shares
Canlife 7IM AAP Moderately Adventurous 35.28 2.22 Figures are for the underlying fund
Canlife BlackRock Consensus 70 18.66 1.67 Figures are for 29 months for the underlying fund Canlife BlackRock Consensus 85 29.23 1.95 Figures are for the underlying fund
Canlife CF Seneca Diversified Growth 27.25 1.94 Canlife F&C MM Lifestyle Balanced 33.89 2.27 Canlife F&C MM Lifestyle Cautious 29.80 1.89 Canlife F&C MM Navigator Progressive 36.82 2.21 Canlife Fidelity Multi Asset Open Growth 23.81 2.16 Canlife Henderson Multi-Manager Managed 30.48 1.99 Canlife Invesco Perpetual Managed Income 43.51 2.28 Canlife Jupiter Merlin Balanced Portfolio 29.57 2.09 Canlife Managed (40%–85% Shares) 32.19 2.07 Canlife Multiple Investment 32.98 2.05 Canlife Portfolio 5 31.68 1.85 Canlife Portfolio 6 33.94 2.26
Canlife UK Equity and Bond Income 35.69 2.35 Figures are for the underlying fund
Flexible Investment
Canlife Henderson Multi-Manager Active 34.37 2.23
UK All Companies
Canlife Invesco Perpetual High Income 47.11 2.23
Canlife Invesco Perpetual Income 47.03 2.20
UK Equity Income
Canlife CF Woodford Equity Income 6.82 2.15 Figures are for 6 months for the underlying fund
UK Index-Linked Gilts
Canlife Index Linked 18.15 2.13
Sterling Strategic Bond
Canlife AXA Framlington Managed Income 42.64 2.09
Sterling Corporate Bond
Canlife Corporate Bond 24.70 1.55
Global High Yield
Canlife Threadneedle Emerging Markets Bond 5.68 2.32
Protected/Guaranteed
Canlife Investec Multi Asset Protector 21.36 1.66
Specialist
Canlife HC Stirling House Balanced 11.74 1.57 Figures are for 22 months for the underlying fund Canlife HC Stirling House Growth 14.13 1.82 Figures are for 22 months for the underlying fund Canlife Newton Real Return 13.36 1.51 Figures are for the underlying fund
Volatility group 3
ABI sector / Fund name Performance Monthly Notes (% return) volatility
Mixed Investment (40–85% shares)
Canlife Neptune Balanced 23.77 2.41
Flexible Investment
Canlife 7IM AAP Adventurous 40.06 2.62 Figures are for the underlying fund Canlife Artemis Strategic Assets 21.96 2.50
Canlife F&C MM Lifestyle Growth 33.44 2.70 Canlife F&C MM Navigator Select 37.50 2.37 Canlife Jupiter Merlin Growth Portfolio 32.00 2.38
Canlife Portfolio 7 33.63 2.64
UK All Companies
Canlife AXA Framlington UK Select Opportunities 38.41 3.12 Canlife British Blue Chip 37.29 2.98 Canlife Henderson UK Index 31.81 2.95 Canlife Invesco Perpetual UK Growth 67.67 3.00
Canlife Investec UK Special Situations 42.81 2.69 Figures are for the underlying fund Canlife M&G Recovery 11.48 2.93
Canlife SVM UK Opportunities 55.64 3.13
UK Equity Income
Canlife Artemis Income 43.65 2.54 Canlife AXA Framlington Monthly Income 43.35 2.45 Canlife F&C Responsible UK Income 46.97 2.55 Canlife Jupiter Income Trust 35.62 2.71 Canlife Neptune Income 30.29 2.73 Canlife Schroder Income Maximiser 59.29 2.79
Canlife UK Equity Income 36.20 2.51
UK Smaller Companies
Canlife Schroder UK Smaller Companies 73.75 2.90
North America Equities
Canlife North American 59.35 2.91
Canlife Threadneedle American Select 55.63 3.08
Global Equities
Canlife BlackRock Consensus 100 38.25 2.54 Figures are for 29 months for the underlying fund Canlife F&C MM Navigator Boutiques 47.21 2.69
Canlife Fidelity Global Focus 46.77 2.69 Canlife Fidelity Global Special Situations 62.85 3.06 Canlife Fidelity Wealthbuilder 43.45 2.71 Canlife Global Equity 47.76 2.62
Canlife Global Equity Income 30.51 2.58 Figures are for 31 months for the underlying fund Canlife Henderson Global Equity Income 50.50 2.67 Figures are for 30 months for the underlying fund Canlife Jupiter Merlin Worldwide Portfolio 28.82 2.63
Canlife M&G Global Basics 3.05 2.97
Canlife M&G Global Dividend 40.2 2.97 Figures are for the underlying fund Canlife Newton Global Income 37.75 2.40 Figures are for the underlying fun d
Global Property
Canlife Schroder Global Property Securities 39.92 3.04
Specialist
Volatility group 4
ABI sector / Fund name Performance Monthly Notes
(% return) volatility
UK All Companies
Canlife BlackRock UK Special Situations 36.04 3.21 Canlife F&C UK Alpha 14.97 3.20 Canlife Fidelity Special Situations 62.36 3.19 Canlife Jupiter UK Growth 84.15 3.58 Canlife Schroder UK Mid 250 87.61 3.85
Canlife UK Equity 38.93 3.13
UK Smaller Companies
Canlife Investec UK Smaller Companies 75.36 3.31
Europe excluding UK Equities
Canlife Artemis European Growth 60.10 4.17
Canlife European 44.01 3.68
Canlife Fidelity European 46.06 3.36 Canlife JPM Europe 52.20 3.77 Canlife SVM Continental Europe 54.20 4.32 Canlife Threadneedle European Select 52.55 3.52
North America Equities
Canlife BlackRock US Opportunities 64.97 3.44 Canlife Fidelity American 53.29 3.14
Canlife Neptune US Opportunities 56.03 3.66
Asia Pacific excluding Japan Equities
Canlife Asia Pacific 26.14 3.34
Canlife JPM Asia 28.49 3.61
Canlife Newton Asian Income 33.89 3.42 Figures are for the underlying fund
Japan Equities
Canlife Japanese 28.29 3.65
Canlife Schroder Tokyo 29.95 3.29
Global Equities
Canlife Allianz Global EcoTrends 28.45 3.60 Canlife Investec Global Strategic Equity 62.34 3.20 Canlife Neptune Global Equity 29.51 3.49
Global Emerging Markets Equities
Canlife Allianz BRIC Stars 9.85 4.60 Canlife BlackRock Emerging Markets 14.66 4.05 Canlife Henderson China Opportunities 38.04 3.88 Canlife Henderson Emerging Markets Opportunities 11.85 3.91 Canlife Invesco Perpetual Latin American -16.45 5.42 Canlife Jupiter Emerging European Opportunities -20.96 5.87
Canlife M&G Global Emerging Markets 9.73 4.14 Figures are for the underlying fund Canlife Neptune Emerging Markets -1.87 3.74
Canlife Neptune India 54.10 6.20
Canlife Threadneedle Latin America -21.25 5.49
Global Property
Canlife Fidelity Global Property 50.84 3.16
Commodity & Energy
Canlife BlackRock Gold & General -53.07 8.83
Canlife Global Resource -11.77 5.33 Figures are for 23 months for the underlying fund Canlife JPM Natural Resources -42.40 6.30
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 2014.
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.
For further information about Canada Life Limited, please visit
www.canadalife.co.uk
or call us on
0845 6060708.
Canada Life Limited, registered in England no. 973271. Registered office: Canada Life Place, Potters Bar, Hertfordshire EN6 5BA. Telephone: 0845 6060708 Fax: 01707 646088 www.canadalife.co.uk 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.
