Maturity of BlackRock Canada LifePath® 2010 and 2015 Target Date funds

October 6, 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).

As
previously announced, BlackRock Asset Management Canada Limited (BlackRock) will merge the BlackRock LifePath® Index 2010 Retirement Fund and BlackRock LifePath® Index 2015 Retirement Fund with the BlackRock LifePath® Index Retirement Fund I on December 10, 2014. As a result, Sun Life Financial will merge the BlackRock LifePath® Index 2010 Retirement Segregated Fund and the BlackRock LifePath® Index 2015 Segregated Fund into the BlackRock LifePath® Index Retirement Segregated Fund I on December 10, 2014.

How will this impact you and your plan members?
No action is required by you or your plan members. The assets held in the BlackRock LifePath® Index 2010 Retirement Segregated Fund and the BlackRock LifePath® Index 2015 Segregated Fund will automatically be transferred into the BlackRock LifePath® Index Retirement Segregated Fund I on December 10, 2014. Plan members can continue to invest assets into, or remove assets from, the BlackRock LifePath® Index 2010 Retirement Segregated Fund and the BlackRock LifePath® Index 2015 Segregated Fund until the funds merge with the BlackRock LifePath® Index Retirement Segregated Fund I on December 10, 2014.

Why is the 2010 Fund maturing now?
As the BlackRock LifePath® Index 2010 Retirement Fund was the first fund in the LifePath® series to reach its target date, BlackRock provided a grace period of up to five years to help taxable investors manage their withdrawals over time.

Starting with the 2015 Fund and going forward, BlackRock expects to merge the applicable maturing fund with the BlackRock LifePath® Index Retirement Fund I on or before December 31 of the year immediately preceding the applicable fund’s target date. For example, the BlackRock LifePath® Index 2020 Fund is currently expected to merge with the BlackRock LifePath® Index Retirement Fund I on or before December 31, 2019. The BlackRock LifePath® Index Retirement Fund I has the most conservative investment mix available in the target date fund series and is designed to provide income and moderate long-term growth of capital for investors beginning to withdraw their money.

Tax Impact
Plan members with assets in the non-registered portion of the BlackRock LifePath® Index 2010 Retirement Segregated Fund and the BlackRock LifePath® Index 2015 Segregated Fund will experience a capital gain or loss when the assets are transferred to the BlackRock LifePath® Index Retirement Segregated Fund I. Capital gains must be reported in the year the transfer is completed. There are no tax implications for assets in the registered portion of the BlackRock LifePath® Index 2010 Retirement Segregated Fund and the BlackRock LifePath® Index 2015 Segregated Fund because the transfer is tax-sheltered.

A message outlining the changes and potential tax implications will be posted to the Plan Member Services website and Morningstar®.

BlackRock and Sun Life Financial are committed to making this transition as smooth as possible for plan sponsors and their members.

Questions?
Please contact your Sun Life Financial Group Retirement Services representative.