Granite Target Date, Granite Multi-Risk Target Date, Granite Target Risk and Sun Life Managed Income Fund Updates
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).
Recently, Sun Life Global Investments (Canada) Inc. (SLGI) made changes to the Sun Life Financial Granite Series of Target Date Segregated Funds, Sun Life Financial Granite Series of Multi-Risk Target Date Segregated Funds, Sun Life Financial Granite Target Risk Segregated Funds and Sun Life Managed Income Segregated Fund.
Details on each of the changes are described below.
Sun Life Financial Granite Target Date, Granite Multi-Risk Target Date and Granite Target Risk Segregated funds effective October 1, 2017:
- SLGI added an allocation to core U.S. Bonds through the Sun Life Ryan Labs U.S. Core Fixed Income Fund. This allocation was funded from existing global bond allocations.
- SLGI transitioned portfolio sub-advisory responsibilities for an underlying Granite holding; Sun Life Sentry Global Mid Cap Fund, from Sentry Investments Inc. (Sentry) to Schroder Investment Management North America Inc. (Schroders). The fund was renamed Sun Life Schroder Global Mid Cap Fund. The purpose of the change is to provide investors with broader geographic diversification. The investment strategies of the fund were amended to reflect Schroders' internationally focused investment style. The investment objective remains the same.
Sun Life Financial Granite Target Risk Segregated Funds effective October 1, 2017:
- SLGI updated the asset allocation of the SLF Granite Target Risk Funds to better align with their new strategic risk and return assumptions. Emerging Market exposure was increased while developed international market exposure was decreased.
- U.S. equity exposure now has a target allocation to passive large cap at 60% across all funds.
- In fixed income, in addition to the U.S. Bond addition noted above, SLGI added a strategic allocation to specialty bonds through the Sun Life NWQ Flexible Income Fund. This allocation was funded from existing bond allocations.
- There were no changes to the underlying components of the benchmark, however, the benchmark weights were adjusted to reflect the changes above effective October 1, 2017.
Sun Life Financial Granite Target Risk Funds and Sun Life Managed Income Segregated funds, effective October 31, 2017:
- Due to an unexpected portfolio manager change at Sentry, SLGI announced the termination of Sentry as sub-advisor of the Sun Life Sentry Infrastructure Fund, an underlying fund in the portfolios. As a result, the fund’s name changed to the Sun Life Infrastructure Fund effective November 1, 2017. The investment objective and strategies of the fund remain consistent. State Street Global Markets Canada (State Street) was appointed as interim manager until a replacement sub-advisor was selected.
- On December 6, 2017, SLGI announced that Lazard Asset Management (Canada) Inc. (Lazard) was appointed as sub-advisor for the Sun Life Infrastructure Fund. The name, objectives and investment strategies of the Fund remained unchanged. Lazard assumed sub-advisory responsibilities for the Fund on December 15, 2017.
Copies of the revised SIP&Ps 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.
Please contact your Sun Life Financial Group Retirement Services representative.