March 15, 2023

The Investment Manager Research (IMR) team oversees the investment managers of Canada Life’s mutual and segregated funds. They monitor, evaluate and rate the funds and their investment managers. This helps to ensure the investment managers and funds on our platform are relevant and competitive, so you can feel confident you’re providing the right investment solutions to your clients.

On March 10, 2023, Silicon Valley Bank (SVB) failed after a bank run, causing the largest bank failure in the U.S. since the 2008 Financial Crisis and the second-largest in U.S. history. SVB was an institution that specialized in providing banking and financial services to the technology and life sciences industries as well as private equity and venture capital firms.

Following the SVB collapse, Signature Bank, a New York based financial institution with deep ties to the cryptocurrency industry, collapsed on March 12 after depositors made a run on the bank. Then on March 13 San Francisco-based First Republic Bank experienced sharp stock losses due to fears of bank contagion before national regulators took emergency measures, and First Republic Bank secured additional financing through J.P. Morgan and the U.S. Federal Reserve.

The Canada Life IMR team has reviewed exposures across fund lineups to these U.S. banks and has determined that there is minimal exposure and it hasn’t had a material impact to fund performance. Investment managers across Canada Life platforms have been diligent in analyzing potential risk in these types of situations and continue to monitor for any potential market impacts as a result of what has already occurred.  

Canada Life’s IMR team continues to monitor U.S. bank exposures and maintains regular contact with investment managers regarding these minor positions. The IMR team regularly reviews investment lineups and the investment managers that have been hired as best-in-class sub-advisors as part of their overall monitoring plan across business units in order to keep on top of these types of market situations.

The views expressed in this update are current as of March 15, 2023 and are subject to change without notice. This update is presented only as a general source of information and is not intended as a solicitation to buy or sell specific investments, nor is it intended to provide tax or legal advice.

These funds are available through a segregated funds policy issued by The Canada Life Assurance Company or as a mutual fund managed by Canada Life Investment Management Ltd. offered exclusively through Quadrus Investment Services Ltd. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated. A description of the key features of the segregated fund policy is contained in the information folder. Any amount allocated to a segregated fund is invested at the risk of the policyowner and may increase or decrease in value.

Canada Life and design, and Canada Life Investment Management and design are trademarks of The Canada Life Assurance Company.