October 15, 2018

Revised benchmark returns for Granite 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 is established as segregated funds in accordance with the Insurance Companies Act (Canada).

In August 2018, we discovered that Sun Life Global Investments Canada (SLGI) submitted incorrect benchmark returns to Morningstar® for the months of April, May and June 2018 for the two series of segregated funds below (the Funds):

Sun Life Financial Granite Target Date Funds
Sun Life Financial Granite Multi-Risk Target Date Funds.

An internal investigation by SLGI identified that the error was due to a failure to adjust the benchmarks as the Funds' strategic asset mix changed. As a result of this error, the benchmark returns for the Funds were incorrectly reported for the period April 9, 2018 to August 21, 2018. The error was corrected on August 21, 2018.

SLGI recognizes the importance of accurate performance reporting and apologizes for this error. SLGI has committed to adding additional reporting controls to its data verification procedures going forward, including having additional individuals verify information prior to data release.

How does this impact you and your plan members?
It is important to note that the Funds' returns have always been reported correctly; only the Funds' benchmark returns were 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.