2055 fund added to the BlackRock LifePath® Index Target Date Fund suite
July 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).
BlackRock Asset Management Canada Limited (BlackRock) has added the 2055 fund to its LifePath® target date fund suite. Effective July 7, 2015, the BlackRock LifePath®2055 Target Date Segregated Fund will be available on Sun Life Finanancial’s Core investment platform. Plans that currently offer the BlackRock LifePath Series of Target Date Funds to their plan members will automatically have the BlackRock LifePath2055 Target Date Segregated Fund added on July 7, 2015.
How will this impact you and your plan members?
No action is required by you or your plan members. Plan members will continue to have access to the series of Target Date Funds available within their plan through mysunlife.ca.
The BlackRock LifePath funds, similar to many other target date suite of funds, are an evolving series meaning earlier dated funds mature and automatically roll into the most conservative option – in this case the BlackRock Retirement Fund - when the target year is reached. Similarly, later dated funds become available for younger plan members. We make the process easier for plan sponsors offering target date series’ from our Core investment platform, by facilitating the maturity process, as well as automatically adding later-dated funds as they become available.
Updated Fund Profiles
The updated Fund Profiles (i.e. BlackRock’s Investment guidelines document) which includes the BlackRock 2055 target date fund, will be available on Sun Life Financial's Plan Sponsor Services website at www.sunlife.ca/sponsor in July 2015. 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.
About the BlackRock LifePath series of target date funds
The BlackRock LifePath Index funds use a fund-of-funds approach to create a balanced asset mix. BlackRock does not tactically manage the asset mix. Assets are invested in passive, index-replication funds, providing exposure to the following asset classes: Canadian equities, U.S. equities, international equities (developed and emerging markets), fixed income (domestic and foreign), Real Estate Investment Trusts (REITs), commodities, alternative investments, and cash and equivalents. The series is available with target maturity dates in 5-year intervals (Retirement and 2015 to 2055). The Retirement Fund has a conservative asset mix and is designed to provide income and moderate long-term growth of capital for investors beginning to withdraw their money.
Please contact your Sun Life Financial Group Retirement Services representative.