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Target risk funds – Canada Life

Learn how to invest for retirement based on your comfort with risk. Go to www.mycanadalifeatwork.com to sign in today.

View the video transcript:

Description: The back of a house is shown with a door and steps to the yard. Two open hands move in, framing the house.
Narrator: If you want your savings to grow, you usually need to take on some kind of risk.
Description: Daniel stands in his yard sketching on a clipboard.
Narrator: The trick is to find investments that match your comfort with risk.
Description: Cut to view of clipboard. He finishes his sketch of a new deck at the back of the house.
Narrator: Target risk funds can help you do that.
Description: Words “Target risk funds” appear onscreen.
Narrator: Each fund includes a unique mix of different types of investments.
Description: Five pie graphs appear. The graphs are arranged from low to high risk: “Conservative,” “Moderate,” “Balanced,” “Advanced” and “Aggressive.” A meter appears below to indicate a “Lower” or “Higher” amount of risk.
Narrator: For example, a conservative risk fund might focus on bonds and real estate.
Description: Camera zooms in on the “Conservative” risk fund. Investment graphics appear beside to represent bonds and real estate.
Narrator: That’s because these types of investments tend to provide a return that’s more consistent and less volatile.
Description: Camera pans to a graph of stock market fluctuations over time. The gradual growth of the “Conservative” risk fund is shown. A pile of money below the graph becomes larger as time progresses.
Narrator: On the other end of the scale is an aggressive risk fund, that would focus more on equities (or stocks).
Description: Camera pans back to the “Conservative” risk fund, moves past the “Moderate,” “Balanced” and “Advanced” graphs to the “Aggressive” risk fund. Investment graphics appear beside to represent stocks.
Narrator: Returns on these types of funds go up and down with the markets. You can make a lot or lose a lot in a short time frame.
Description: Camera pans back to the graph of stock market fluctuations. The pile of money below the graph gains or loses money as time progresses.
Narrator: To help manage risk, our investment managers spread each fund’s investments across different industries, countries, and groupings of investments with similar characteristics, laws and regulations.
Description: Investment graphics fill the frame. The investment manager’s hand moves in and five investments are chosen to build a fund.
Narrator: When returns for one type of investment are down, others tend to be up.
Description: Two of the investments become smaller and the others get larger. The hand replaces the smaller investments.
Narrator: The managers rebalance each fund to keep it within its specific target risk level.
Description: The five investments line up and two meters are displayed below, indicating a “Lower” or “Higher” amount of risk and a “Lower” or “Higher” return. The fund’s risk and return are set.
Narrator: Complete our investment personality questionnaire to find out how much risk you’re comfortable with.
Description: Cut to Daniel on his laptop at home.
Narrator: Once you know, it's easy to pick your matching target risk fund.
Description: The investment personality questionnaire is displayed on the laptop. He calculates his points from each section.
Narrator: And remember, as your life changes, your investment personality may change with it.
Description: Cut to Daniel outside in the summer, building the foundation for his deck. A “Conservative” risk fund is displayed.
Narrator: When that happens, you can just switch to a different target risk fund.
Description: Cut back to him in the winter, building the deck railing. A “Balanced” risk fund is displayed.
Narrator: What an easy, hands-off approach to investing.
Description: Daniel and his family are shown, enjoying the finished deck in the summer.
Narrator: Want to learn more about target risk funds?
Description: Camera pans. Text “Go to mycanadalifeatwork.com to sign in today.” appears with Canada Life logo and legal line: Canada Life and design and My Canada Life at Work are trademarks of The Canada Life Assurance Company. mycanadalifeatwork.com 1-800-724-3402.