December 05, 2016

Revised benchmark returns for the BlackRock LifePath Index Series of target date 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 September 2016, BlackRock Asset Management Canada Limited (BlackRock) revised the benchmark returns for the BlackRock LifePath® Index Series of target date funds (the Funds) for the month of May 2016.

BlackRock provided Morningstar® with incorrect benchmark data for the month of May 2016 for all nine benchmarks used by the Funds. A revision was made to the benchmarks on June 21, 2016, but due to a miscommunication between BlackRock and Morningstar, seven of the nine benchmark returns (for the 2020-2050 Funds) were not updated in Morningstar. The correct returns for all benchmarks became available in Morningstar effective September 16, 2016. As a result, rate of return reports run between mid-June and September 16, 2016 would have shown incorrect benchmark returns.

BlackRock has taken steps to improve the process of revision communication to Morningstar in the future.

How does this impact you and your plan members?
There is no impact to you or your plan members as a result of this update and no action is required. It is important to note that the Funds' returns have always been reported correctly; only the Funds' benchmarks for the month of May 2016 have been revised. Revised benchmark returns are now available on the plan sponsor and plan member services website and on Morningstar. We will also notify plan members of this revision via Morningstar.

Please contact your Sun Life Financial Group Retirement Services representative.