Revised benchmark returns for the Lazard Global Listed Infrastructure Fund
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 a segregated fund in accordance with the Insurance Companies Act (Canada).
In July 2016, Lazard Asset Management LLC (Lazard) provided Morningstar® with revised benchmark returns for the Lazard Global Listed Infrastructure Fund (the Fund).
The Fund's benchmark is the Canadian Consumer Price Index (CPI) +5%. Lazard mistakenly provided Morningstar with the CPI data but omitted the additional 5% (annualized) for the months of April and May 2016. The corrected benchmark returns were available in the Morningstar database on July 15, 2016.
This incident follows two other revisions to the funds benchmark returns in May and November, 2015.
Lazard has explained that the benchmark data is calculated through a manual process and the errors were due to human oversight. The firm has implemented measures to ensure the accuracy of the benchmark calculation, including the assignment of back-up personnel and an additional review process prior to the data release.
While we are disappointed with the disruptive nature of these revisions, we remain confident that Lazard continue to manage the Fund with the appropriate level of prudence and diligence. We believe that listed infrastructure can help Capital Accumulation Plans diversify beyond traditional investments for the benefit of plan members.
How does this impact you and your plan members?
It is important to note that the returns for the Lazard Global Listed Infrastructure Fund have always been reported correctly; only the Fund's benchmarks have been revised. Revised benchmark returns are available on the plan sponsor and plan member services website and on Morningstar.
There is no action required of you or your plan members as a result of this update.
Please contact your Sun Life Financial Group Retirement Services representative.