Fidelity ClearPath Enhancements
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 February 2018, Fidelity Investments Canada ULC (“Fidelity”) announced the following updates to the Fidelity ClearPath Target Date suite of funds (“ClearPath funds”) which are expected to be implemented in the first quarter of 2018:
- Fidelity is adding the flexibility for the ClearPath fund to invest in index strategies (i.e. passively-managed strategies). The blended approach being applied includes an allocation of approximately 70% to actively managed strategies and approximately 30% to passive index strategies.
- Fidelity is making additional changes to some of the underlying funds that ClearPath invests in, most prominently changing the weighting and selection of underlying funds in US Equity and Canadian Equity.
- Fidelity is modifying the glide path for members nearing and in retirement to bring more diversification to the portfolio. These adjustments include an increase within the fixed income exposure in real return bonds, and a reduction in investment grade bonds and equities. Accordingly, the allocation to equity at age 65 will be approximately 49%.
The Investment Solutions team has reviewed the updates noted above and is comfortable with the changes.
Please contact your Sun Life Financial Group Retirement Services representative.
A copy of the revised SIP&P is available on Sun Life Financial’s Plan Sponsor Services website at www.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.