Download CF Canlife Portfolio Funds

CF CANLIFE PORTFOLIO FUNDS:
PARAGRAPHS FOR SUITABILITY LETTER
For professional adviser use only
Data correct as at 31/12/2016
Important note to advisers:
These sample paragraphs are for your information and consideration only. It is your
responsibility to ensure that any letters sent to your clients meet the requirements of your
regulatory authority and that any recommendations made are appropriate for your client.
No liability is accepted by Canada Life Investments in connection with your use of any of
these suggestions.
You may wish to refer to the FCA’s guidance on the use of standard paragraphs in
suitability letters, and the importance of reflecting factors specific to your client's
circumstances:
http://www.fca.org.uk/static/fca/documents/fsa-improving-quality-of-advice.pdf
For further information:
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Contact your Canada Life Account Manager
Email [email protected]
Call Canada Life Investments on 020 7415 6509/6490
Visit www.canadalifeinvestments.com
Investment solutions for today’s markets
In a fast-moving world, choosing the right mix of investments has never been more challenging.
Volatile, uncertain markets and tough economic conditions make it difficult to decide how to position a
portfolio over the long term.
Different asset classes – such as equities, bonds and property – move in and out of favour. It is not
easy to decide when to switch from one to another. A blend of assets is usually the best long-term
solution for investors, providing more consistent returns with lower volatility. The key is to determine
the right mix for you.
The first step in this process is to define your tolerance for loss and to propose an investment solution
that suits your profile and objectives.
Be aware, however, that even a diversified portfolio can fall in value.
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Importance of risk profiling
Risk profiling is the basis of a sound investment plan, helping an investor determine the right balance
of risk and reward. Canada Life Investments has partnered with Dynamic Planner, a firm specialising
in investment risk profiling. A market leader in this field, Dynamic Planner has devised a series of
questions to determine how an individual feels about investment risk.
Your risk profile and current situation
You have undertaken this process, and your risk profile was deemed to be [Insert profile and
description].
[Add client’s circumstances and objectives.]
We have discussed using the CF Canlife Portfolio Funds to help you achieve your financial objectives.
Managed by Canada Life Investments, these funds are designed to meet specific risk profiles.
CF Canlife Portfolio Funds
The CF Canlife Portfolio Funds invest in a range of assets, helping you diversify your exposure to the
markets. Asset allocations are kept within predetermined limits, ensuring the funds do not deviate
from the agreed risk profile.
There are five funds, numbered III through VII, each offering a different risk level. The higher the
number, the higher the risk. If your attitude towards risk or your circumstances change, you can simply
switch to another CF Canlife Portfolio Fund that offers a different risk profile. Generally, as the risk
rises so does the potential return, but also the likelihood of volatility (price change), while the lower the
risk, the lower the potential return and volatility. The CF Canlife Portfolio Funds invest in other funds
that are primarily managed by Canada Life Investments.
The value of CF Canlife Portfolio Funds can fall as well as rise. Even the lowest risk fund can still fall in
value.
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CF Canlife Portfolio [X] Fund
We have selected the fund that is right for you, namely CF Canlife Portfolio [X].
[Insert relevant fund description from options below.]
FUND DESCRIPTIONS
CF Canlife Portfolio III Fund
CF Canlife Portfolio III Fund invests mainly in fixed income securities and cash but also includes UK
and international equities and UK commercial property. This is primarily achieved through investment
in funds managed by Canada Life Investments. Funds managed by other investment managers may
also be used.
CF Canlife Portfolio IV Fund
CF Canlife Portfolio IV Fund invests about half of its assets in fixed income securities and cash with the
remaining in UK and international equities and UK commercial property. This is primarily achieved
through investment in funds managed by Canada Life Investments. Funds managed by other
investment managers may also be used.
CF Canlife Portfolio V Fund
CF Canlife Portfolio V Fund invests mainly in UK and international equities and UK commercial
property with a little more than a third in fixed income securities (35%). This is primarily achieved
through investment in funds managed by Canada Life Investments. Funds managed by other
investment managers may also be used.
CF Canlife Portfolio VI Fund
CF Canlife Portfolio VI Fund invests primarily in UK and international equities (71%) with the remainder
in fixed income securities and UK commercial property. This is primarily achieved through investment
in funds managed by Canada Life Investments. Funds managed by other investment managers may
also be used.
CF Canlife Portfolio VII Fund
CF Canlife Portfolio VII Fund invests predominantly in equities (85%), with a substantial proportion of
this invested overseas (50%). The remainder is allocated to UK corporate bonds, global high yield
bonds and UK commercial property. This is primarily achieved through investment in funds managed
by Canada Life Investments. Funds managed by other investment managers may also be used.
Importance of active management by Canada Life Investments
Dynamic Planner produces long-term model portfolios with asset allocations for each CF Canlife
Portfolio Fund. This is called the neutral allocation and offers a clearly defined risk and return. Every
quarter Dynamic Planner reviews its model portfolios in view of market movements and makes asset
allocation changes when appropriate.
The CF Canlife Portfolio Funds are monitored over time to ensure they remain consistent with the
relevant Dynamic Planner model. They typically invest in a minimum of seven underlying funds that are
predominantly actively managed in-house funds from Canada Life Investments. The portfolio
managers are experienced in managing assets through varying market conditions.
While the Portfolio Funds themselves are not actively managed and instead adhere rigidly to the
Dynamic Planner asset allocations, they benefit from the active decisions made by each of the
underlying fund managers. As a starting point, the portfolio managers analyse macroeconomic,
political and social trends and consider the outlook. These conclusions drive their research into
markets, industries and companies, telling them where to dig deeper for the most promising
investments. The fund managers are fully empowered to follow their convictions when selecting
individual securities.
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CF Canlife Portfolio [X]: Investments
[Insert relevant fund target asset allocations as at 06/10/2016 from below.]
FUND INVESTMENTS
CF Canlife Portfolio III Fund: Investments
CF Canlife Portfolio III had the following target asset allocation as at 6 October 2016.
Fixed Income Total
CF Canlife UK Government Bond
CF Canlife Corporate Bond
CF Canlife Global Bond
iShares £ Index-Linked Gilts UCITS
ETF
Putnam Global High Yield Bond
Equities Total
CF Canlife UK Equity and CF Canlife
UK Equity Income
CF Canlife European
CF Canlife North American
Cf Canlife Japan
UK Property Total
Canlife UK Property Jersey
Cash Total
BlackRock ICS Sterling Liquidity
GRAND TOTAL
Percent of
Fund
58
14
23
9
7
5
24
14
2
6
2
8
8
10
10
100
Canlife Portfolio IV Fund: Investments
CF Canlife Portfolio IV had the following target asset allocation as at 6 October 2016.
Fixed Income Total
CF Canlife UK Government Bond
CF Canlife Corporate Bond
iShares £ Index-linked Gilts UCITS
ETF
CF Canlife Global Bond
Putnam Global High Yield Bond
Equities Total
CF Canlife UK Equity and CF Canlife
UK Equity Income
CF Canlife European
CF Canlife North American
CF Canlife Japan
CF Canlife Asia Pacific
UK Property Total
Canlife UK Property Jersey
Cash Total
BlackRock ICS Sterling Liquidity
Percent of
Fund
46
8
24
5
3
6
41
19
4
10
4
4
8
8
5
5
4
GRAND TOTAL
100
CF Canlife Portfolio V Fund: Investments
CF Canlife Portfolio V had the following target asset allocation as at 6 October 2016.
Fixed Income Total
CF Canlife Corporate Bond
Putnam Global High Yield Bond
CF Canlife UK Government Bond
Equities Total
CF Canlife UK Equity and CF Canlife UK
Equity Income
CF Canlife European
CF Canlife North American
CF Canlife Japan
CF Canlife Asia Pacific
iShares MSCI Emerging Markets UCITS
ETF
UK Property Total
Canlife UK Property Jersey
GRAND TOTAL
Percent of
Fund
35
24
6
5
58
26
5
12
5
5
5
7
7
100
CF Canlife Portfolio VI Fund: Investments
CF Canlife Portfolio VI had the following target asset allocation as at 6 October 2016.
Fixed Income Total
CF Canlife Corporate Bond
Putnam Global High Yield Bond
Equities Total
CF Canlife UK Equity and CF Canlife UK
Equity Income
CF Canlife European
CF Canlife North American
CF Canlife Japan
CF Canlife Asia Pacific
iShares MSCI Emerging Markets UCITS
ETF
UK Property Total
Canlife UK Property Jersey
GRAND TOTAL
Percent of
Fund
24
19
5
71
31
5
9
5
10
11
5
5
100
5
CF Canlife Portfolio VII Fund: Investments
CF Canlife Portfolio VII had the following target asset allocation as at 6 October 2016.
Fixed Income Total
CF Canlife Corporate Bond
Putnam Global High Yield Bond
Equities Total
CF Canlife UK Equity and CF Canlife UK
Equity Income
CF Canlife European
CF Canlife North American
CF Canlife Japan
CF Canlife Asia Pacific
iShares MSCI Emerging Markets UCITS
ETF
UK Property Total
Canlife UK Property Jersey
GRAND TOTAL
Percent of
Fund
10
5
5
85
35
5
7
5
16
17
5
5
100
Daily rebalancing
Market movements may affect the proportion of a fund that is allocated to different asset classes.
The funds are therefore rebalanced daily if required, to maintain the target allocations.
Lower costs
By investing primarily in in-house funds, Canada Life Investments is able to maintain low costs across
their suite of CF Canlife Portfolio Funds.
Canada Life Investments
Canada Life Investments is a UK-based asset manager responsible for managing more than £35bn of
equities, fixed income and property1. It has been active in the UK for more than 100 years, having first
established its life insurance business here in 1903. As an asset manager, Canada Life Investments
focuses on the long term and believes that active management is the best way to add value for clients
and generate superior returns. Its parent company, Great-West Lifeco, is one of Canada’s largest
financial companies with over £750bn in consolidated assets under administration1. By being part of a
much larger group, it is able to draw on a pool of expertise and resources that enable it to better serve
its clients and help them to meet their objectives.
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As at 31/12/2016
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Warnings:
 Past performance is not a guide to future performance. The value of investments may fall as
well as rise and investors may not get back the amount invested. Income from investments
may fluctuate. Currency fluctuations can also affect performance
 Liquidity/Credit Risks: The fund invests indirectly in government and corporate debt. Their
value is affected by changes in interest rates and inflation as well as their credit ratings. At
times of market stress, corporate debt may not be saleable in a timely manner at reasonable
prices.
 Property Fund Investment Risk: The fund may invest in property funds that may be illiquid and
more volatile, both of which can impact the value of the fund.
 Currency Risk: As the fund invests indirectly in overseas securities, exchange rate movements
may, when not hedged, cause the value of your investment to increase or decrease
 Emerging Market Risk: Emerging markets may be less liquid, more volatile and subject to less
oversight. There is a greater risk that other parties may default, causing loss to the fund
 Non-UCITS Retail Scheme (NURS): The fund can be less diversified than UCITS schemes as it
has higher investment limits for certain types of assets. It can also invest in assets which are
not available to UCITS schemes. This can increase the potential rewards but can also increase
risk
 For full details of the fund's risks, please see the latest prospectus and the Key Investor
Information Document (KIID) available at www.canadalifeinvestments.com.
 No guarantee, warranty or representation (express or implied) is given as to the document’s
accuracy or completeness.
PLEASE NOTE THAT YOU SHOULD SATISFY YOURSELF OF THE EFFECTIVENESS OF THIS
MATERIAL. CANADA LIFE INVESTMENTS ACCEPTS NO RESPONSIBILITY FOR THE USE OR
OTHERWISE OF THESE SUGGESTED PARAGRAPHS.
The information contained in this document is provided for use by professional advisers and is not for onward distribution to, or
to be relied upon by, private investors. Canada Life Investments is the brand for investment management activities undertaken
by Canada Life Asset Management Limited, Canada Life Limited and Canada Life European Real Estate Limited. Canada Life
Asset Management Limited (no. 03846821), Canada Life Limited (no.00973271) and Canada Life European Real Estate
Limited (no. 03846823) are all registered in England and the registered office for all three entities is Canada Life Place, Potters
Bar, Hertfordshire EN6 5BA. Canada Life Asset Management is authorised and regulated by the Financial Conduct Authority.
Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and
the Prudential Regulation Authority.
CLI00692 Expiry 14/09/2017
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