CF CANLIFE PORTFOLIO FUNDS:
PARAGRAPHS FOR SUITABILITY LETTER
For professional adviser use only
Data correct as at 15/01/15
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 contactCLInvestments@canadalife.co.uk
Call Canada Life Investments on 020 7415 6549/6482
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 longterm 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 Distribution Technology
(DT), a firm specialising in investment risk profiling. A market leader in this field, Distribution
Technology 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.
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.]
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FUND DESCRIPTIONS
CF Canlife Portfolio III Fund
CF Canlife Portfolio III Fund invests mainly in fixed interest 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 almost half of its assets in fixed interest 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 interest 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 (70%) with the
remainder in fixed interest 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 (82%), with a substantial
proportion of this invested overseas (48%), and includes an allocation 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
Distribution Technology 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 against an appropriate benchmark. Every quarter Distribution Technology 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 Distribution Technology 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
Distribution Technology 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 15/01/15 from below.]
FUND INVESTMENTS
CF Canlife Portfolio III Fund: Investments
CF Canlife Portfolio III had the following target asset allocation as at 15 January 2015.
Fixed Interest 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 North American
UK Property Total
Canlife UK Property Jersey
Cash Total
BlackRock ICS Sterling Liquidity
GRAND TOTAL
Percent of
Fund
56
16
20
7
7
6
26
16
10
8
8
10
10
100
Canlife Portfolio IV Fund: Investments
CF Canlife Portfolio IV had the following target asset allocation as at 15 January 2015.
Fixed Interest Total
CF Canlife UK Government Bond
CF Canlife Corporate 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
Percent of
Fund
46
8
27
5
6
41
22
5
9
5
8
8
5
4
BlackRock ICS Sterling Liquidity
GRAND TOTAL
5
100
CF Canlife Portfolio V Fund: Investments
CF Canlife Portfolio V had the following target asset allocation as at 15 January 2015.
Fixed Interest 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
UK Property Total
Canlife UK Property Jersey
GRAND TOTAL
Percent
of Fund
35
24
6
5
58
28
5
14
5
6
7
7
100
CF Canlife Portfolio VI Fund: Investments
CF Canlife Portfolio VI had the following target asset allocation as at 15 January 2015.
Fixed Interest Total
CF Canlife Corporate Bond
CF Canlife UK Government 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
25
15
5
5
70
29
6
11
6
9
9
5
5
100
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CF Canlife Portfolio VII Fund: Investments
CF Canlife Portfolio VII had the following target asset allocation as at 15 January 2015.
Fixed Interest 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
13
8
5
82
34
5
9
5
14
15
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
£33bn 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 £560bn in consolidated assets under
administration2. 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.
1 As at 31/12/14
2 As at 30/09/14
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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
 CF Canlife Portfolio VI and VII Funds: Due to the portfolio composition and/or portfolio
management techniques used by the fund manager, the fund price is classed as having
above average volatility
 Credit Risk: The value of fixed interest securities is affected by changes in interest rates
and inflation as well as changes in their credit ratings
 Property Fund Investment Risk: The fund may invest in property funds that may be illiquid
and subject to wide price spreads, both of which can impact the value of the fund. The
value of the property is based on the opinion of a valuer and is therefore subjective.
 Currency Risk: As the fund invests indirectly in overseas, 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 and transparent, 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.
ID 6008/0115R Expiry February 2016
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