2016

October 17, 2016

Revised Statement of Investment Policies for Fiera Capital Segregated Funds

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 funds listed below, which are established as segregated funds in accordance with the Insurance Companies Act (Canada).

In July 2016, Fiera Capital Corp. (Fiera) revised its Statement of Investment Policies (SIP) for the Fiera U.S. Equity Fund, Fiera International Equity Fund and the Fiera Global Equity Fund. The SIPs were amended to give the portfolio managers greater flexibility to make appropriate investment decisions without breaching their policy constraints. Fiera has confirmed that the changes will have no effect on the overall strategy and investment philosophy of the funds.

What’s changed?
The revised SIP guidelines for each fund are outlined below:

Fiera U.S. Equity Fund
Revised Previous
Not to exceed 45 securities Portfolio must include at least 25 securities
Be invested in at least six sectors of the S&P 500 Index, as defined by the Global Industry Classification Standard (GICS) The portfolio shall be invested in at least seven of the ten GICS sectors
Fiera International Equity Fund
Revised Previous
Consist of at least 25 securities and a maximum of 45 securities The portfolio must include 30 securities
Be invested in at least six sectors of the MSCI EAFE Index, as defined by the Global Industry Classification Standard (GICS) The portfolio shall be invested in at least seven of the ten GICS sectors
The market value invested in each sector shall be limited to +/-20% of the sector's weight within the MSCI EAFE Index The market value invested in each sector is limited to +/-15%
Fiera Global Equity Fund
Revised Previous
Consist of at least 35 securities and a maximum of 55 securities Portfolio must include 40 securities
Be invested in at least six sectors of the MSCI World Index, as defined by the Global Industry Classification Standard (GICS) Portfolio shall be invested in at least seven of the ten GICS sectors
The market value invested in each sector shall be limited to +/-20% of the sector's weight within the MSCI World Index The market value invested in each sector is limited to +/-15%.

Sun Life Financial agrees that these new guidelines allow the portfolio managers to more closely adhere to their published investment process. Prior to these changes, the various strategies were near the boundaries of their respective investment guidelines.

Copies of the revised SIPs are available on Sun Life Financial’s plan sponsor services website at 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.

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