Canada Life takes on absolute return titans with targeted volatility fund

Canada Life Investments is going head to head with absolute return giants by launching a new targeted volatility strategic fund, Investment Week can reveal.

The new fund, CF Canlife Strategic Return, will be run by one of the asset management subsidiaries of the parent insurance company Great-West Life, US-based PanAgora Asset Management. The fund aims to achieve a positive return independent of market conditions over a medium to long term, with an expected annual return of cash + 5% and volatility between 7.8% and 10.4%. The investment strategy will avoid asset classes with higher degrees of liquidity risk and tail risk, with no investments in high yield, emerging market debt, private equity, or real estate. The difference between the...