New fund additions to the Core investment platform
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).
Sun Life regularly reviews the Core investment platform in response to client interest and evolving fund offerings in the market. Sun Life is adding one new investment partner and five new funds from existing managers effective immediately. These funds are available to both DC and DB/INVO plans.
Our new investment partner, Dimensional Fund Advisors (“DFA”), is a U.S.-based investment management firm with over C$700 billion in assets under management and offices in nine countries, including two in Canada. Founded in 1981, DFA is well-known for utilizing academic research on market inefficiencies to create practical investment solutions.
Sun Life is adding the following two DFA funds to our Core platform, effective immediately:
- DFA International Core Equity Segregated Fund
- DFA U.S. Core Equity Segregated Fund
These two funds use a quantitative, model-based approach to identify investment “factors” that DFA believes will outperform the broad market over the long-term. Factors include value, profitability, and small capitalization.
Sun Life is also adding the following three equity funds to the Core platform, effective immediately:
- Fidelity Canadian Core Equity Trust Segregated Fund
- Sun Life JPMorgan International Equity Segregated Fund
- Sun Life Schroder Global Mid Cap Segregated Fund
Below are brief descriptions of each of these funds.
Fidelity Canadian Core Equity Trust Segregated Fund
A traditional, fundamental research-based Canadian equity strategy managed by the Fidelity Canada team utilizing a core, lower tracking error approach. Tight restrictions on sector weightings ensures performance is primarily driven by stock selection.
Sun Life JPMorgan International Equity Segregated Fund
The fund is managed by Sun Life Global Investments and sub-advised by JPMorgan. The UK-based JPMorgan team manages the portfolio, leveraging traditional fundamental research from global sector analysts as well as regional teams in JPMorgan’s local offices. JPMorgan creates a high conviction, concentrated portfolio of investments selected from both developed markets (non-U.S.) and emerging markets.
Sun Life Schroder Global Mid Cap Segregated Fund
The fund is managed by Sun Life Global Investments and sub-advised by Schroder. Schroder PLC is a large global asset management firm based in the UK that has managed investments for almost a century. The fund is managed by a team with strong experience and a long tenure in this asset class. The fund has a mandate to invest in smaller companies globally, encompassing small- and mid-cap stocks, and utilizes a core style with a growth bias.
Our Core investment platform is an important part of our offering to you. These additions represent our commitment to offering diverse investment options complemented by an industry-leading governance program.
What action is required by you and your plan members?
You and your plan members are not impacted by these changes and do not need to take any action. You may wish to consider whether any of these new funds would be suitable to add to your lineup.
Please contact your Sun Life Financial Group Retirement Services representative.