Sun Life Financial (and Sun Life) Money Market Fund revised Investment GuidelinesJune 3, 2013
Plan sponsors may wish to consider whether this investment update has any implications for the investment options available within their plan.
Effective May 2013, Sun Life Global Investments (Canada) Inc. (SLGI) revised its Investment Guidelines for the SLGI Money Market Fund, the sole investment of each of the Sun Life Financial Money Market Segregated Fund and the Sun Life Money Market Segregated Fund. Key highlights of the changes to the Investment Guidelines include:
Summary of investment strategies:
- May invest up to 5% (decreased from 10%) of the Fund’s assets in Canadian dollar-denominated money market instruments of foreign issuers.
- New statement added: "Floating rate evidences of indebtedness interest rate is reset no later than every 185 days and the principal amount of the indebtedness will continue to have a market value of approximately par at the time of each interest rate reset."
Liquidity was added as a risk control, with the following comments:
- The portfolio must have at least 5% of its portfolio invested in cash or securities readily convertible to cash within one business day, and
- 15% of its assets invested in cash or securities readily convertible to cash within one week.
- Maximum of 5% (decreased from 10%) in Canadian dollar-denominated money market instruments of foreign issuers.
Term to maturity:
- The Fund maintains a weighted average term to maturity of 180 days or less.
- The Fund also maintains a weighted average term to maturity of 90 days or less, if term to maturity for each floating rate note is measured to the next rate reset date.
Two new sections were added:
- Definition of a Money Market Fund – as outlined in National Instrument 81-102
- Securities Lending/Repurchase Agreements – to indicate that the fund will not engage in securities lending or repurchase / reverse repurchase transactions.
Some clarification statements were also added to the Eligible Investments section and other minor editorial edits were made throughout the document.
SLGI's Investment Guidelines outline the investment objectives, strategies and guidelines for the fund. A copy of the revised Investment Guidelines document is available on the Sun Life Financial Plan Sponsor Services website at www.sunlife.ca/sponsor. When logged into the website, under the Administration and reporting tab, select Group Retirement Services, then on the top navigation menu select Investments > Governance Reports.
Please contact your Sun Life Financial Group Retirement Services representative.