Update on the Sun Life Financial Milestone® Series of Segregated Funds

December 8, 2011

Plan sponsors may wish to consider whether this investment news has any implications for the investment options available within their plan.

 

Sun Life Financial Milestone funds - New additions to the management team 

In early 2012, Sun Life Global Investments (Canada) Inc. (SLGIC), our new Canadian investment company,will assume increased responsibilities in the management of the Sun Life Financial Milestone Funds. SLGIC's portfolio management team will complement the existing resources within Sun Life Assurance Company of Canada (SLACC). SLACC will continue to be responsible for the management and oversight of the Milestone Funds. SLACC will also continue to be the guarantor for the funds. 

 

 

Sun Life Financial Milestone funds – Revised Statement of Investment Policies and Goals

As part of the annual review of the Statement of Investment Policies and Goals (SIP&G), in early January 2012, the updated SIP&G will be available on the Sun Life Financial Plan Sponsor Services website. Highlights of the changes to the SIP&G are as follows:

 

Investment Approach section:

 

Regional guidelines for the Sun Life Milestone Global Equity Fund (the equity component of each Milestone fund)

The following regional guidelines will form part of the SIP&G. Using the MSCI World Index regional weightings at the end of the previous quarter, the Sun Life Milestone Global Equity Fund is monitored daily and rebalanced if any of the following ranges based on market value of the fund are breached. These regional constraints had been used for internal monitoring purposes and are now formalized in the SIP&G.

 

Exposure to countries not included in MSCI World Index

+/- 0%

Exposure to Europe excluding the United Kingdom

+/- 5%

Exposure to United Kingdom

+/- 5%

Exposure to United States

+/- 5%

Exposure to Canada - two times MSCI World Index Weight

+/- 5%

Exposure to Asia (Japan, Hong Kong, Israel)

+/- 5%

Exposure to Australasia (Australia, New Zealand, Singapore)

+/- 5%

 

 

Asset mix section:

 

Target asset mix update

The asset mix for each Milestone Fund will be revised to reflect actual fund allocations as of September 30, 2011.

Term to Maturity of Government of Canada securities has changed

The term of maturity for cash and Government of Canada securities held by the Sun Life Milestone Global Equity Fund will be changed to “less than 365 days” (from “less than 91 days”). The 91-day policy was a legacy convention and the definition was broadened in order to expand the opportunity set available across the term to maturity spectrum for short term securities.

 

How does this change affect you and your plan members?

There is no impact to you or your plan members and there is no action required by you or your members. 

 

To review the revised SIP&G when it becomes available in early January, 2012, sign into the Sun Life Financial Plan Sponsor Services website at www.sunlife.com/sponsor and under the Administration and reporting tab, select Group Retirement Services; then on the top navigation menu select Investments > Investment news.