Maturity of the Sun Life Financial 2015 Milestone® Segregated FundApril 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 Milestone® Segregated Fund will reach maturity. At this time the assets in the fund will automatically transfer to the Sun Life Financial Money Market Fund or the money market fund available in your plan. Prior to the fund’s target maturity date of June 29, 2015, plan sponsors whose plans do not offer a money market fund will be contacted by their Sun Life Financial Client Relationship Executive in order to add the Sun Life Financial Money Market Fund to their current fund line-up.
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 Milestone Segregated Fund will automatically be transferred into the Sun Life Financial Money Market Segregated Fund on June 29, 2015. Plan members can continue to invest assets into, or remove assets from, the Sun Life Financial 2015 Milestone Segregated Fund until the funds matures on June 29, 2015. Sun Life Financial may contact plan members to review their investment objectives and the impact the change may have on their future investment decisions.
Plan members who hold the Sun Life Financial 2015 Milestone Segregated Fund in a non-registered account will experience a capital gain or loss when the assets are transferred to the Sun Life Financial Money Market Segregated Fund on June 29, 2015. Capital gains must be reported for the tax year the transfer is completed. There is no tax implication for assets held 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 Milestone Segregated Funds are the first lifecycle funds for employer-sponsored group retirement and savings plans in Canada to feature a guaranteed unit value at maturity – equal to the highest month-end unit value during the lifetime of the respective Fund.
Background on the Sun Life Financial Money Market Segregated Fund
The goal of the Sun Life Financial Money Market Segregated Fund is to outperform the FTSE TMX 91 Day T Bill index on a risk adjusted basis, and to protect capital and to maintain liquidity by investing primarily in Canadian dollar-denominated money market instruments. The fund is managed by Sun Life Global Investments (Canada) Inc. and sub advised by MFS Investment Management.
Please contact your Sun Life Financial Group Retirement Services representative.