Changes to our structured products fund line-up and the Core investment platform

December 1, 2015

Sun Life Financial regularly reviews the fund line-up of all of our products and as a result of a recent review, our FutureFinder, Step Up and Choices investment line-ups will be changing. For FutureFinder and Step Up, we will be adding the Sun Life Financial Granite Target Risk series in February 2016. All three products will see the removal of the CI Portfolio Series beginning in April 2016.  These changes will provide plan members with access to similar funds at the same or lower Investment Management Fees (IMF).

In addition, effective immediately, CI will no longer be available to new plan sponsors as part of our Core investment platform. Plan sponsors currently offering CI funds in their plans are not affected by this change and member contributions in those plans can continue in the future. Governance for CI funds will continue at this time, but it is expected to be reviewed.

What is changing for FutureFinder?
On February 12, 2016, the Sun Life Financial Granite Target Risk series of funds (“the Funds”) will be added to the FutureFinder fund line-up. On May 13, 2016, the CI Portfolio Series will be removed from the fund line-up.  The table below highlights the closing funds and the corresponding replacement funds.

Closing Segregated Funds

IMF

Replacement Segregated Funds

IMF

CI Portfolio Series Income

2.70

Sun Life Financial GraniteTM Conservative

2.40

CI Portfolio Series Conservative

2.70

Sun Life Financial GraniteTM Moderate

2.40

CI Portfolio Series Balanced

2.70

Sun Life Financial GraniteTM Balanced

2.40

CI Portfolio Series Balanced Growth

2.70

Sun Life Financial GraniteTM Growth

2.40

CI Portfolio Series Growth

2.70

Sun Life Financial GraniteTM Aggressive

2.40

CI Portfolio Series Maximum Growth

2.70

Sun Life Financial GraniteTM Aggressive

2.40


How will this affect plan members?
On May 13, 2016, any assets remaining in, and any future contributions directed to the closing funds will automatically be transferred to the replacement funds. Until the asset transfer takes place, the closing funds will continue to be available to plan members with assets in those funds. The closing funds will not be available as a new investment selection effective February 12, 2016.

When the changes are implemented, plan members will see a sale of the discontinued fund(s) and the purchase of the replacement fund(s) reflected on their accounts. This change will not result in a capital gain or loss for plan members as this is a registered product. Plan members will have the opportunity to change their investments at any time prior to the automatic transfer on May 13, 2016.

What is changing for Step Up?

On February 5, 2016, the Sun Life MFS U.S. Value fund and the Sun Life Financial Granite Target Risk series of funds will be added to the Step Up fund line-up. On May 6, 2016, the CI American Value fund and the CI Portfolio Series will be removed from the Step Up fund line-up. The table below highlights the closing funds and the corresponding replacement funds. There will be no changes to the Investment Management Fees.

Closing Segregated Funds

Replacement Segregated Funds

CI Portfolio Series Income

Sun Life Financial GraniteTM Conservative

CI Portfolio Series Conservative

Sun Life Financial GraniteTM Moderate

CI Portfolio Series Balanced

Sun Life Financial GraniteTM Balanced

CI Portfolio Series Balanced Growth

Sun Life Financial GraniteTM Growth

CI Portfolio Series Growth

Sun Life Financial GraniteTM Aggressive

CI Portfolio Series Maximum Growth

Sun Life Financial GraniteTM Aggressive

CI American Value

Sun Life MFS U.S. Value


How will this affect plan members?
On May 6, 2016, any assets remaining in, and any future contributions directed to the closing funds will automatically be transferred to the replacement funds. Until the asset transfer takes place, the closing funds will continue to be available to plan members with assets in those funds. The closing funds will not be available as a new investment selection effective February 5, 2016.
When the changes are implemented, plan members will see a sale of the closing fund(s) and the purchase of the replacement fund(s) reflected on their accounts. This change may result in a capital gain or loss for plan members. We will include information about potential tax implications in our plan member communications. Plan members will be able to change their investments at any time prior to the automatic transfer on May 6, 2016.

What is changing for Choices*?
The changes to the Choices plans are for registered assets only. On April 19, 2016, for Retirement Income plans and on April 26, 2016, for Retirement Savings plans the CI Portfolio Series will no longer be available as part of the fund line-up and existing assets and any future contributions will be mapped to new funds indicated in the table below. Customers with non-registered assets in the closing funds may continue to hold these funds, but the funds will no longer accept new contributions.

It is important to note, there will be a reduction in Investment Management Fees (IMFs) for these replacement funds. For detailed information on the new fees, please contact your Sun Life Financial representative.
When the changes are implemented, plan members will see a sale of the closing fund(s) and the purchase of the replacement fund(s) reflected on their accounts. Plan members will have the opportunity to change their investments at any time prior to or after, the automatic transfer in April 2016.

We will be informing Choices plan members of these changes with a my statement insert in their December year-end statement, along with a message on mysunlife.ca.

*Choices, our retirement savings and income product offering, is for plan members who have left their employer-sponsored retirement and savings plan, but want to remain in a group plan at Sun Life Financial.

Closing Segregated Funds

Replacement Segregated Funds

CI Portfolio Series Income

Sun Life Financial GraniteTM Conservative

CI Portfolio Series Conservative

Sun Life Financial GraniteTM Moderate

CI Portfolio Series Balanced

Sun Life Financial GraniteTM Balanced

CI Portfolio Series Balanced Growth

Sun Life Financial GraniteTM Growth

CI Portfolio Series Growth

Sun Life Financial GraniteTM Aggressive

CI Portfolio Series Maximum Growth

Sun Life Financial GraniteTM Aggressive


Marketing and communications
We have created communications for plan sponsors and plan members for all products and have included links to the English and French materials below.

About the new funds
The Sun Life Financial Granite Target Risk series of funds provide plan members with a one-stop investment solution. Based on their risk tolerance, members select the most appropriate fund in the series. Members will need to review their risk tolerance periodically to ensure the funds’ investment approach continue to reflect their goals.

The Sun Life Financial Granite Target Risk series of funds are managed by the Sun Life Global Investments Portfolio Management team. The team selects best-in-class managers for each asset class and actively manages these portfolios to take advantage of different market environments. The funds offer broad diversification by asset class, geographic region, sector and style and incorporate non-traditional asset classes, such as high-yield bonds, emerging markets debt and equity, real estate and infrastructure. The funds are managed with a belief that, from an overall portfolio perspective, a mix of active and passive investments is complementary.

The Sun Life MFS U.S. Value fund is managed by Sun Life Global Investments and sub-advised by MFS Investment Management. The Fund's investment objective is to seek capital appreciation by investing primarily in equity securities of companies with large market capitalizations located in the United States that are considered to be undervalued compared to their perceived worth.

Step Up Communications

FutureFinder Communications



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