Another investment innovation from Sun Life Financial

November 6, 2013

Introducing the Bentall Kennedy Canadian Real Estate Plus fund
As the leading provider of group retirement services in Canada, our goal is to make it easy for plan members to save at work. We do that by providing them with the information, education and tools they need to help them plan for their retirement. Part of making it easy means offering innovative investment options that appeal to our diverse plan sponsor and plan member population across Canada.

Today we are thrilled to announce the addition of our latest investment innovation to our Core investment platform: the Bentall Kennedy Canadian Real Estate Plus fund. As the first alternative fund on our platform, this fund widens the breadth of investment solutions and complements our existing robust investment line-up of funds from leading investment managers.

Expertly designed. Expertly managed.
In partnership with Bentall Kennedy, a leader in Canadian real estate management for over 100 years, we have designed the Bentall Kennedy Canadian Real Estate Plus fund as a unique fund within the group retirement savings industry. The Fund offers a distinctive enhanced liquidity component which directly addresses plan sponsor concerns around the illiquidity of traditional Direct Real Estate funds. By allocating a portion of the fund’s assets to cash, cash equivalents and funds that invest in Real Estate Investment Trusts (REITs), the fund is able to offer daily redemption to investors.

This fund is managed by Bentall Kennedy’s subsidiary, BKC Capital Inc. and will be available to Sun Life Financial Defined Contribution Plan Sponsors effective immediately.

A winning partnership
Sun Life Financial is proud to partner with Bentall Kennedy to launch a Real Estate fund that is uniquely crafted to respond to the needs of our plan sponsors with:

  • daily valuation and a liquidity facility which allows for daily redemptions+;
  • an investment foundation with a 30 year track record and substantial portfolio; and,
  • an investment vehicle advised 100% by real estate professionals focused only on direct real estate.

The Bentall Kennedy Canadian Real Estate Plus fund is structured to provide plan members with stable income returns, combined with value appreciation potential through investments in a diversified mix of office, industrial, retail, multi-family residential, land and other income-producing properties located in Canada. This fund is suitable for plan members who are medium-to-long-term investors comfortable with medium-high investment risk.

Simulated Performance for Bentall Kennedy Canadian Real Estate Plus fund

  Annual periods ending June 30   Annualized periods ending June 30, 2013
  2009 2010 2011 2012 2013   3 years 5 years 10 years
Bentall Kennedy Canadian Real Estate Plus++ -7.00%    7.12% 13.10%  9.08% 6.48%   9.52%  5.53% 9.81%
Benchmark+++ 0.54%     7.40% 8.46% 5.88% 3.69%   5.92% 4.94%  5.65%
Relative Performance -7.54%     -0.28% 4.64% 3.20% 2.79%   3.60% 0.59%  4.16%

About Bentall Kennedy
Bentall Kennedy is one of North America's largest real estate investment advisors and Canada's largest property manager, providing comprehensive real estate services to our clients. Bentall Kennedy serves the interests of more than 500 clients across 145 million square feet of office, retail, industrial, and residential properties totalling $31.5 billion in assets under management throughout North America. Bentall Kennedy is a leader in Responsible Property Investing, and is committed to best-in-class environmental, social and governance practices in developing, leasing and managing commercial real estate.

Morningstar® reporting and Investment documents
Morningstar® investment reporting will be available in late November. Investment documents that outline investment objectives, strategies and guidelines for the fund will be available in mid-late November via the Sun Life Financial Plan Sponsor Services website at  >>Administration and reporting tab >>Group Retirement Services>>on the top navigation menu select Investments>>Governance reports.

To learn more about the Fund and about Bentall Kennedy, visit the Bentall Kennedy Canadian Real Estate Plus fund website at

Please contact your Sun Life Financial Group Retirement Services representative.

+Although the Fund’s design is intended to provide daily liquidity to plan member investors, if the firm deems there are insufficient cash and REIT holdings to fund actual and expected redemption activity, they may suspend or defer redemptions until the fund is deemed sufficiently liquid.

++Simulated Fund returns have the following assumptions: 70% Actual PRIME fund returns (net of all administration expenses and fees, including portfolio management, acquisition and disposition fees); 20% Prime Business rate less 2% (cash return); 10% S&P/TSX Capped REIT Index (net of 60 bps expected embedded ETF operating expenses). Had the fund been in existence over the period, its actual performance would have differed from these simulated returns.

+++70% * (CPI+4%), 10% * S&P/TSX REIT Index, 20% * Average Yield on Gov't of Canada 1-month T-bills.