Changes to the non-North American component of the Greystone Balanced Fund

September 2, 2014

Plan sponsors may wish to consider whether this investment news has any implications for the investment options available within their plans. Sun Life Assurance Company of Canada purchases units of the funds listed below, which are established as segregated funds in accordance with the Insurance Companies Act (Canada).

Effective October 1, 2014, Greystone Managed Investments Inc. (Greystone) is terminating the sub-advisory relationship with Hansberger Global Investors (Hansberger), Inc. as sub-advisor of half of the non-North American component of the Greystone Balanced Fund. The target allocation of the Greystone Balanced Fund to non-North American equities is 18%. As a result of Hansberger's termination, Greystone will commence merging the Greystone EAFE Growth Fund into the Greystone International Equity Fund on September 22, 2014.

The transition of assets is expected to be completed by September 30, 2014. As a result of this merger, the non-North American equity strategy in the Greystone Balanced Fund will become comprised of 100% Greystone International Equity Fund, as opposed to 50% Greystone EAFE Growth Fund (currently sub-advised by Hansberger) and 50% Greystone International Equity Fund (managed by Greystone’s International Equity team).

There is no fund management fee impact to the Greystone Balanced Fund as a result of this change.

Rationale for the changes

Greystone has used sub-advisors for its international equity strategies since they were first offered in 1992. On April 22, 2014, the Natixis Global Asset Management, Hansberger's owner, advised Greystone of its intention to sell Hansberger to Madison Investment Advisors. In May, 2014, Greystone conducted a due diligence review of Madison Investment Advisors and examined the firm’s structure and ownership, client base, investment strategies and conducted a full operational and compliance due diligence review. Upon completion of the review, a decision was made to terminate the sub-advisory relationship with Hansberger based on Greystone’s concern regarding: the change in ownership, the change in investment personnel and reduced confidence in Hansberger’s ability to deliver future investment outperformance.  

Greystone created its International Equity team six years ago, in July 2008. Since inception, the team has expanded its personnel and developed a disciplined investment process which Greystone indicates is based on its risk-conscious growth philosophy, using quantitative and qualitative assessment tools in portfolio construction.

How does this impact you and your plan members?

No action is required by plan sponsors or members as a result of this change The Greystone Balanced Fund Investment Policy has been updated to reflect this change, effective October 1, 2014. Plan sponsors may view the Investment Policy for the fund via the Sun Life Financial Plan Sponsor Services website at  

Please contact your Sun Life Group Retirement Services representative.