Glide Path Changes

CEIRP always aims to make retirement saving easy for you. With simplicity in mind, the plan offers three investment style options:

  • No Touch featuring the Cadence Target Date Funds, which offer a single-fund solution that leaves the decisions to investment professionals.
  • Low Touch featuring the Portfolio Target Risk Funds, which are tailored to different levels of risk tolerance that range from conservative to aggressive.
  • More Hands On: Once you determine your investor profile from the Plan Your Retirement tool on GRS Access or the Investment Personality questionnaire, you can build your own portfolio from the investment options offered in the plan.

Some Changes are Coming
1) The Cadence Target Date Funds use a Glide Path strategy, which is a tool that automatically adjusts a fund’s portfolio holdings as a plan member ages. After an extensive review of the existing strategy, Canada Life’s Portfolio Solutions Group has decided to update it by modernizing its market and investor behavior assumptions. The Glide Path is being enhanced so that it will contain a little more stock (equity) at the beginning of your career and then a reduction of stock at the end of your career.

For example:

  • At the beginning of your career, based on your age when you join the plan, the fund portfolio is designed to encourage growth so it will contain more stocks.
  • As you approach retirement age, the portfolio is adjusted to encourage more conservative growth by adding more fixed income products like bonds and mortgage products, and by reducing its stock holdings.

The ultimate goal is to ensure that you achieve the best returns for your investment.

2) The Portfolio Target Risk Funds will add more diversification by increasing equities (with a focus on foreign equities) to the Conservative and Moderate Target Risk funds. The goal is to enhance growth opportunities while managing risk in the portfolios. A number of new investment managers, renowned for their best-in-class expertise and insight, will be added to the portfolio to ensure it is well diversified.

These changes will be implemented by the end of February 2021. The SRI Balanced Fund will not be affected.

What’s Does This Mean for You?
Enhanced growth and risk management to maximize the long-term investment returns for you.

  • Continued active management by a focused and experienced team, Portfolio Solutions Group, a division of Canada Life.
  • If you invested in a Portfolio Target Risk Fund, consider reviewing your risk tolerance with the Investment personality questionnaire to make sure your investment choices still match your risk profile or if you feel you might need to make adjustments to your fund selection.

Staying Informed
Don’t worry, you don’t have to do anything as a result of these changes. More information will be included in the fourth-quarter fund reports, which will be available online in mid-February 2021. We encourage you to review your investments from time to time to ensure they align with your investment goals. You can do this by signing into your Canada Life online account, or by calling 1-800-724-3402, Monday to Friday from 8 a.m. – 8 p.m. ET.

Making Direct Contributions to Your RRSP or TFSA are Now Even Easier!

Most financial institutions have now updated their bill payee list to include Canada Life Group RRSP and Canada Life Group TFSA. This means you can make direct contributions to your RRSP and/or TFSA by setting it up as a bill through your online banking.

  • Simply go to the bill payment section of your online banking website and do a search for Canada Life Group RRSP or Canada Life Group TFSA.
  • Next click on the corresponding payee option and when prompted, enter in your Policy and Certificate Number together without any spaces.
    • You can find these numbers on your GRSaccess account and/or your account statement.