Sun Life Financial Milestone® Funds Updated SIP&G

November 9, 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).

Effective July 1, 2015, Sun Life Global Investments (Canada) Inc. (SLGI) updated the Statement of Investment Policies and Goals (SIP&G) for the Sun Life Financial Milestone® Funds (Milestone Funds). The SIP&G has been updated to reflect the introduction of Emerging Market (EM) exposure to the Sun Life Milestone Global Equity Fund; the underlying equity component of the Milestone Funds. As a result of this additional EM exposure, the benchmark for the Sun Life Milestone Global Equity Fund is changing from the MSCI World Index to the MSCI All Country World Index (MSCI ACWI).

SLGI has also expanded the allowable regional deviations from 0% to +/- 20% for EM and from +/-5% to +/- 10% for the other regions (vs. their respective weights in the MSCI ACWI index). These changes will be gradually implemented during the third quarter of 2015.

Previous Allowable Regional Deviations vs. the MSCI World Index:

  1. Exposure to countries not included in MSCI World Index +/- 0%
  2. Exposure to Europe excluding the United Kingdom +/- 5%
  3. Exposure to United Kingdom +/- 5%
  4. Exposure to United States +/- 5%
  5. Exposure to Canada +/- 5%
  6. Exposure to Asia (Japan, Hong Kong, Israel) +/- 5%
  7. Exposure to Australasia (Australia, New Zealand, Singapore) +/- 5%

New Allowable Regional Deviations vs. the MSCI ACWI:

  1. Exposure to Europe excluding the United Kingdom +/- 10%
  2. Exposure to United Kingdom +/- 10%
  3. Exposure to United States +/- 10%
  4. Exposure to Canada +/- 10%
  5. Exposure to Asia (Japan, Hong Kong, Israel) +/- 10%
  6. Exposure to Australasia (Australia, New Zealand, Singapore) +/- 10%
  7. Exposure to Emerging Markets +/- 20%

Additionally, the Sun Life Financial 2015 Milestone® Segregated Fund was removed from the document as it reached maturity on June 29, 2015. This was previously announced in early 2015 .

There were no other changes to the Milestone funds' SIP&G.

We see the above changes as an enhancement as they allow SLGI to further diversify the Milestone Funds with the potential to increase returns.  

How does this impact you and your plan members?
There is no action is required of you or your members as a result of this change.

A copy of the revised SIP&G for each fund series is available on the Sun Life Financial 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.

Background

The Milestone funds offer a simplified investment solution that provides:

  • A defined maturity date: helping plan members to save for a future date.
  • Dynamic asset mix: funds in the Milestone series gradually become more conservative as they approach their respective maturity dates.
  • A guaranteed maturity value: plan members benefit from knowing that their investment has a guaranteed maturity value if the fund is held until its intended maturity year.

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