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Diversification – Canada Life

All investments have risk, just some more than others. Manage your exposure by diversifying your investments across different levels of risk within your plan.

View the video transcript:

Description: Braelynn walks into her kitchen with a bag full of groceries. She sets them down on the counter.
Narrator: What kind of investor are you? Adventurous. Cautious. In between.
Description: She opens her cupboard and places three types of hot sauce on the shelf: hot, mild then medium in between.
Narrator: These are just some ways to express your comfort with investment risk.
Description: Camera zooms in on sauces.
Narrator: All investments have risk, some more than others.
Description: Cut to Braelynn, she stands and thinks.
Narrator: One way to reduce risk is through diversification.
Description: “Diversification” appears onscreen.
Narrator: That means spreading your money around in various investments.
Description: Cut to three pie graphs with investment graphics, each display a meter underneath to indicate a “Lower” or “Higher” amount of risk. Each graph is set to a low or medium level of risk.
Narrator: That way, if the market changes for one investment, you have other investments to keep you balanced.
Description: The investment in the middle becomes smaller and the risk level increases. The other two investments adjust to a lower risk to accommodate.
Narrator: If you think diversifying your investments is complicated, it doesn’t have to be.
Description: Camera pans down to reveal a large question mark, investments fall behind.
Narrator: This is where an asset allocation fund comes in.
Description: A pie graph of an asset allocation fund appears. Investment graphics surround the graph.
Narrator: An asset allocation fund automatically spreads your money amongst several funds, so they help manage risk.
Description: A dollar sign appears in the middle of the asset allocation fund. All investment graphics flip to show dollar signs.
Narrator: You can choose from three different types of asset allocation funds.
Description: Cut to three squares with text in each: “Target date funds,” “Target risk funds” and “Risk-adjusted target date funds.” A cursor enters the frame and clicks on “Target date funds.”
Narrator: Target date funds are based on the year you expect to retire.
Description: A pie graph appears, labelled “Target date funds” with a counter below. The counter rolls to 2050.
Narrator: Target risk funds are based on your comfort with risk.
Description: Five pie graphs appear, labelled “Target risk funds.” A meter appears below to indicate a “Lower” or “Higher” amount of risk.
The graphs are arranged from low to high risk: “Conservative,” “Moderate,” “Balanced,” “Advanced” and “Aggressive.”
Narrator: Risk-adjusted target date funds are based both on the year you want to retire and your comfort with risk.
Description: 2050 target date and aggressive target risk fund graphics are shown side-by-side. The label “Risk-adjusted target date funds” appears.
Narrator: Not sure how comfortable you are with risk?
Description: Cut to large question mark.
Narrator: Our investment personality questionnaire can help you figure that out.
Description: Cut to view of hands holding a tablet. The investment personality questionnaire is displayed.
Narrator: Now you can have a diversified investment portfolio that fits your needs and helps you reach your savings goals.
Description: Return to Braelynn in her kitchen, using the medium hot sauce to make dinner.
Narrator: Sign into GRS Access at canadalife.com
Description: Text “Sign into GRS Access at canadalife.com” appears with Canada Life logo and legal line: Canada Life and design are trademarks of The Canada Life Assurance Company. canadalife.com 1-800-724-3402.