Revised SIP&G: Sun Life Financial Granite Series of Target Risk Segregated Funds

January 20, 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 January 1, 2014, the Statement of Investment Policies and Goals (SIP&G) for Sun Life Financial’s Granite Series of Target Risk Segregated Funds (Granite Target Risk funds) has been updated to reflect slight changes in the Risk Controls - Equity allocations section. Specifically, changes were made to the minimum and maximum allocation ranges for Canadian, U.S. and International equity categories for four of the five funds available in the series: Moderate, Balanced, Growth and Aggressive.

For some of the equity asset classes whose Neutral (target) allocation is between 10% and 19%, the allowable ranges increased from +/-5% to between +/- 7% and +/-9%. The ranges were increased in order to allow Sun Life Global Investments (Canada) Inc. (SLGI), additional flexibility to maximize returns and minimize risk with respect to particular equity regional allocations. SLGI believes that these expanded ranges will allow them to express their views better depending on market conditions.

The ranges for the Conservative fund were not changed. Similarly, no changes were made to the broader Equity/Fixed Income ranges, Neutral (target) allocations or benchmarks. For asset classes whose Neutral (target) allocation is 20% or higher, the allowable range remained unchanged at +/-10%.

A summary of the changes to the allocation ranges is provided on the next page.

Ranges prior to January 1, 2014

 

Canadian equity

US equity

International equity

Min

Neutral

Max

Min

Neutral

Max

Min

Neutral

Max

Conservative Fund

7.0%

12.0%

17.0%

4.0%

9.0%

14.0%

4.0%

9.0%

14.0%

Moderate Fund

11.0%

16.0%

21.0%

10.0%

15.0%

20.0%

8.0%

13.0%

18.0%

Balanced Fund  

10.0%

20.0%

30.0%

12.0%

17.0%

22.0%

9.0%

14.0%

19.0%

Growth Fund

14.0%

24.0%

34.0%

14.0%

19.0%

24.0%

10.0%

15.0%

20.0%

Aggressive Fund  

18.0%

28.0%

38.0%

11.0%

21.0%

31.0%

11.0%

16.0%

21.0%


Ranges effective January 1, 2014

 

Canadian equity

US equity

International equity

Min

Neutral

Max

Min

Neutral

Max

Min

Neutral

Max

Conservative Fund

7.0%

12.0%

17.0%

4.0%

9.0%

14.0%

4.0%

9.0%

14.0%

Moderate Fund

8.5%

16.0%

23.5%

7.5%

15.0%

22.5%

5.0%

13.0%

21.0%

Balanced Fund  

10.0%

20.0%

30.0%

9.5%

17.0%

24.5%

6.0%

14.0%

22.0%

Growth Fund

14.0%

24.0%

34.0%

10.0%

19.0%

28.0%

7.0%

15.0%

23.0%

Aggressive Fund  

18.0%

28.0%

38.0%

11.0%

21.0%

31.0%

8.0%

16.0%

24.0%


A copy of the revised SIP&G will be available on Sun Life Financial's 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.

How will this change impact you and your plan members?
There is no impact to you or your plan members as a result of these changes. The Granite Target Risk funds offer your plan members a selection of pre-built funds to maximize your members' returns for a given risk tolerance level. Guidelines are regularly reviewed by SLGI and may be changed as regulatory and/or market conditions dictate.

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