Maturity of the Sun Life Financial 2015 Granite® Target Date Fund

April 6, 2015

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 fund listed below, which is established as segregated fund in accordance with the Insurance Companies Act (Canada).

On June 29, 2015, the Sun Life Financial 2015 Granite® Target Date Fund will reach maturity. At this time the assets in the fund will automatically transfer to the Sun Life Financial Granite Retirement Segregated Fund.

How will this impact you and your plan members?
No action is required by you or your plan members. The assets held in the Sun Life Financial 2015 Granite® Target Date Fund will automatically be transferred into the Sun Life Financial Granite Retirement Segregated Fund on June 29, 2015. Plan members can continue to invest assets into, or remove assets from, the Sun Life Financial 2015 Granite® Target Date Fund until the funds matures on June 29, 2015.

Tax Impact

Plan members who hold the Sun Life Financial 2015 Granite® Target Date Fund in a non-registered account will experience a capital gain or loss when the assets are transferred to the Sun Life Financial Granite Retirement Segregated Fund on June 29, 2015. Capital gains must be reported for the tax year the transfer is completed. There are no tax implications for plan members who hold the fund in a registered account 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®.

Sun Life Financial’s commitment to investment options
The Sun Life Financial Granite Target Date Funds are designed to provide your members with:

  • A simple one-stop solution that makes investing easy
  • Broad diversification to help manage risk
  • Disciplined investment process to keep funds on track for the long term

Each fund’s ratio of equity to fixed income investments changes over time based on pre-determined guidelines; this evolution is known as a glidepath. As the funds near maturity the fixed income exposure increases, providing greater protection of capital against a major equity market downturn.

Background on the Sun Life Financial Granite Retirement Segregated Fund
The Sun Life Financial Granite Retirement Fund’s conservative asset mix is designed to balance capital preservation and growth so that members can draw a stable income for as long as possible.

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