As part of Canada Life’s commitment to remaining competitive, relevant and positioned to win, we’re making some changes to Constellation Managed PortfoliosTM.
Canada Life Investment Management Ltd. (CLIML), in partnership with Irish Life Investment Managers Limited (ILIM), has completed a review of the strategic asset mix target weights for each model portfolio within the Constellation Managed Program. This review happens regularly and is part of our commitment to ensuring the portfolios within the program continue to be responsive to the longer-term global investment outlook.
Following this review, CLIML is making changes to some of the model portfolio’s strategic asset mix target weights so that it’s better positioned for the risk and return outlook across asset classes.
- 5% increase in strategic target equity weight. This is split between:
- International Equities (+3.5%)
- US Equities (+1.5%)
- 5% reduction in strategic target fixed income weight. This is split between:
- Canadian Fixed Income (-3.5%)
- Global Fixed Income (-1.5%)
- The portfolios will maintain their fixed income allocation tilted toward Canadian securities.
|
|
Old SAA - Fixed income |
Old SAA - Equity |
|
|
|---|---|---|---|---|
|
|
100% |
- |
100% |
- |
|
Income |
80% |
20% |
75% |
25% |
|
Moderate income |
60% |
40% |
55% |
45% |
|
Moderate growth |
40% |
60% |
35% |
65% |
|
Growth |
20% |
80% |
15% |
85% |
|
All equity (no change) |
- |
100% |
- |
100% |
These changes are expected to have beneficial impacts from the perspective of goals-based investing. A higher equity allocation allows the portfolios to participate in strong markets, which has the potential to deliver higher expected returns. The portfolio manager believes this trade-off between risk and return is favorable and is supported by their longer-term investment outlook.
For existing Constellation clients, this new asset mix will be effective on or about Feb. 10, 2023, after providing 60 days notice.
For new Constellation clients and existing clients with draft goals, this new asset mix will be available for implementation on or about Nov. 28, 2022.
If you have pending Constellation applications, you’ll need to take action by 5 p.m. ET on Nov. 25 to avoid client disruption:
Key dates
|
Date |
Activity |
|---|---|
|
Nov. 25, 2022 – 5 p.m. ET |
Deadline to complete all DocuSign tasks. After this date any DocuSign tasks will be cancelled and you’ll be required to resubmit the forms under the new asset mix. |
|
Nov. 28, 2022 |
New asset allocation models will be available in the Constellation tool for new clients. If existing clients want to have the new asset allocation applied before Feb. 10, 2023, advisors can revisit their client’s goal in the Constellation tool and apply this new asset mix starting Nov. 28, 2022 |
|
Dec. 2, 2022 |
Clients will be sent a letter notifying them of the change 60 days in advance. |
|
Feb. 3, 2023 |
Deadline for existing clients to let advisors know if they wish to opt-out. |
|
Feb. 10, 2023 |
New asset allocation automatically implemented to existing client portfolios. Existing clients include clients with portfolios prior to Nov. 28. This doesn’t impact existing clients who established or changed their portfolio on or after Nov 28. |