April 22, 2019

New global direct real estate fund available on the DB 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).

We are pleased to announce the addition of Invesco Global Direct Real Estate segregated fund (“Invesco GDRE Fund”) to our DB investment platform effective April 29, 2019. The Invesco GDRE Fund is also available to DC custom portfolios that allow some exposure to non-daily valued/traded funds. This fund increases the breadth of our investment solutions and complements our existing investment line-up of funds from leading investment managers.

About the Invesco GDRE Fund

The Invesco GDRE Fund is only available to DB plans with total plan assets over C$40 million and a minimum contribution amount of C$ 1 million.

The Invesco GDRE Fund is an open-ended vehicle that provides global exposure to institutional quality core and income-focused real estate in major metropolitan markets globally, across office, retail, industrial and apartment sectors. During normal market conditions, the Fund invests in at least three regions – the US, Europe and Asia Pacific - through four underlying real estate funds:

  • Invesco Core Real Estate-U.S.A (“US Core Fund”)
  • Invesco US Income Fund (“US Income Fund”)
  • Invesco Real Estate – European Fund (“European Fund”)
  • Invesco Real Estate Asia Fund (“Asia Fund”)

Each of the underlying funds applies two fundamental principles: (1) maximize the predictability and consistency of investment returns and (2) minimize the risk of capital loss.

The target strategic allocation and tactical ranges of the underlying funds are as follows:

Region Underlying Invesco funds Target strategic allocation Tactical range
US US Core and US Income Funds 50% 40-60%
Europe European Fund 25% 15-35%
Asia Pacific Asia Fund 25% 15-35%

The Invesco GDRE Fund is valued quarterly and would typically call capital on a quarterly basis. As the Fund is valued in US dollars (“USD”) and transactions are executed in USD or Euro, exchange rate movements between the time of a Canadian investor's initial subscription and subsequent capital calls may cause a difference between the subscription amount and the total amount invested.

Invesco GDRE Fund Summary

Asset Class Benchmark Objective
Real Estate CPI+4.0% The Fund seeks to provide an average annual gross return of 7-10% expressed in US dollars over the long-term (the Target Return). While currency fluctuations will impact actual short-term performance of the Fund, the manager is of view that, over the long-term (15 years or more), currency fluctuations will not materially impact the Target Return.

The Fund uses CPI+4% as a benchmark for shorter-term performance reference and to facilitate comparisons across direct real estate funds as the CPI is a common benchmark for the direct real estate asset class in the Canadian market. This benchmark will be available on the plan sponsor services website and on Morningstar.

About Invesco
Invesco is a global asset management firm with offices in more than 20 countries. The firm manages C$ 1.2 trillion of assets across markets and asset classes, including C$ 184 billion in alternative asset classes.

Invesco's Real Estate team consists of over 490 investment professionals located in 16 countries in the North America, Europe and Asia regions. The team has managed real estate assets since 1983. As of September 2018, the team managed C$ 83 billion in real estate assets globally.

Please contact your Sun Life Financial Group Retirement Services representative.