Fund Changes to SunAdvantage my savings Group Retirement plans
Sun Life is adding a new fund to the SunAdvantage my savings fund lineup – the Sun Life Guaranteed Daily Interest Account ("GDIA"). The GDIA will replace the Sun Life Financial Money Market Segregated Fund ("Money Market fund") as a low risk investment option in your plan.
Why are we replacing Money Market with the GDIA?
- The after-fee return for the GDIA generally higher than the after-fee return for the Money Market fund.
- The GDIA offers a guaranteed return, while the Money Market fund's return depends upon the performance of its investments.
- In certain market conditions, the Money Market fund's returns could be negative, after the impact of fees. The GDIA returns will never be negative.
When will this happen?
- The GDIA will be available in your plan on December 4, 2019.
- On March 23, 2020, we'll move any money plan members have in the Money Market fund into the GDIA. This includes future contributions.
- We'll remove the Money Market fund from your fund lineup on March 24, 2020. Plan members won't have access to the fund we're removing after 4 p.m. ET on March 20, 2020, when we process these changes.
Change to maturity process for Milestone funds
The replacement of the Money Market fund with the GDIA will change where a plan member's money moves when Milestone funds mature. At maturity, money will now move to the GDIA (previously Money Market fund). For example, when the Milestone 2020 fund matures on June 30, 2020, the money invested in it will move to the GDIA on that day.
Name change for Greystone funds
On November 1, 2019, TD Greystone Asset Management ("TD Greystone") made changes to the names of 2 funds in your plan. The underlying fund for the Sun Life Financial Balanced Growth Segregated Fund changed from Greystone Balanced Segregated Fund to TD Greystone Balanced Segregated Fund. The underlying fund for the Sun Life Financial Canadian Equity Growth Segregated Fund changed from Greystone Canadian Equity Segregated Fund to TD Greystone Canadian Equity Segregated Fund.
The Toronto-Dominion Bank ("TD") acquired Greystone Capital Management ("Greystone") in a transaction announced in July 2018. Greystone has been operating as part of TD Asset Management under the name TD Greystone since the transaction closed in November 2018. The fund names are changing to align with the TD Greystone name.
There will be no changes to any of the Funds' strategies, investment objectives or investment teams. There is no tax impact to plan members.
What do I need to do?
You don't need to do anything. Plan members will receive a communication from Sun Life in their November month-end statement explaining each of the changes above.