Key takeaways:
Increased US equities, decreased cash
Tactical Update - February 26, 2020
Global equities retreated sharply over the last week as investors digested news about the spread of the coronavirus to countries beyond China. The broadly based S&P 500 Index is now down over 7% from its recent high.
While we will continue to monitor the situation, as longer-term investors we know that volatility can often come out of nowhere and rattle investor sentiment, while the longer term impact on company fundamentals is minimal. It is difficult to handicap the virus in the short-to-medium term and the impact of COVID-19 on economic activity can be large in the short-term. However, market overreactions provide an opportunity to put some cash to work. We have tactically increased the Funds’ allocation to US equities.
Empire Life Investments Inc. is the Portfolio Manager of the Empire Life segregated funds. Empire Life Investments Inc. is a wholly-owned subsidiary of The Empire Life Insurance Company.
Empire Life Emblem GIF Portfolios currently invest primarily in units of Empire Life Mutual Funds.
A description of the key features of the individual variable insurance contract is contained in the Information Folder for the product being considered. Any amount that is allocated to a Segregated Fund is invested at the risk of the contract owner and may increase or decrease in value.
Policies are issued by The Empire Life Insurance Company.
Empire Life Investments Inc. is the Manager of the Empire Life Emblem Portfolios and Empire Life Mutual Funds (the “Portfolios” or “Funds”). The units of the Portfolios and Funds are available only in those jurisdictions where they may be lawfully offered for sale and therein only by persons permitted to sell such units.
This document includes forward-looking information that is based on the opinions and views of Empire Life Investments Inc. as of the date stated and is subject to change without notice. This information should not be considered a recommendation to buy or sell nor should they be relied upon as investment, tax or legal advice. Information contained in this report has been obtained from third party sources believed to be reliable, but accuracy cannot be guaranteed. Empire Life Investments Inc. and its affiliates does not warrant or make any representations regarding the use or the results of the information contained herein in terms of its correctness, accuracy, timeliness, reliability, or otherwise, and does not accept any responsibility for any loss or damage that results from its use.
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.
