April 01, 2019

Update on the Sionna Canadian Small Cap Segregated Fund

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).

The Sionna Canadian Small Cap Segregated Fund (the "Segregated Fund") available on Sun Life’s core investment platform is currently managed by Brandes Investment Partners & Co. ("Brandes") and invests in units of a Brandes fund. Bridgehouse Asset Managers is a trade name for Brandes and has hired Sionna Investment Managers Inc. (“Sionna”) as portfolio sub-advisor for the Brandes fund. In February, Brandes has informed Sun Life that subject to a unitholder vote on April 12, 2019, they will merge the Sionna Canadian Small Cap Fund into a fund with a different strategy, namely the Sionna Opportunities Fund (all cap), in May 2019. As a result, Brandes terminated its investment management agreement with Sun Life for the Segregated Fund.

In order to preserve GRS plan sponsors’ current relationship with Sionna as the ultimate sub-advisor of the Segregated Fund and to maintain the same (Canadian small capitalization equity) investment strategy, on April 15, 2019, the Segregated Fund will switch from buying units of the Brandes fund to buying units of the Sionna Canadian Small Cap Equity pooled fund directly. This change will result in a taxable event for non-registered investors. Investment management fees for the Segregated Fund for clients who offer the fund in their lineups currently also will not change. The name of the Segregated Fund will not change. There are no other changes expected in the investment objectives, process or team managing the Fund. No action is required by you or your plan members. 

Please contact your Sun Life Financial Group Retirement Services representative.