Maturity of the Sun Life 2020 Milestone® Segregated Fund
You may wish to consider whether this news has implications for the investment options within your plan. Sun Life Assurance Company of Canada purchases units of the funds listed below. These are then established as segregated funds in accordance with the Insurance Companies Act (Canada).
On June 29, 2020, the Sun Life 2020 Milestone® Segregated Fund (Milestone 2020) will reach maturity.
Upon maturity, it will have reached its most conservative investment mix. This means a 100% allocation to maturing fixed income. On this date, Sun Life will automatically transfer the assets in – and any future contributions directed to - Milestone 2020, to either the:
- Sun Life Guaranteed Daily Interest Account (GDIA), or
- Sun Life Financial Money Market Fund,or the money market fund available in the plan.
If your plan currently offers a money market fund and a GDIA, we’ll transfer the money to the GDIA.
Your plan may not currently offer the GDIA or a money market fund. In that situation, unless we receive different instructions, Sun Life will automatically add the GDIA to the lineup. The addition would occur before the asset transfer.
How will this impact you and your plan members?
If you’re satisfied with the suggested transfer above, you and your plan members don’t have to take any action. The transfer will happen unless we explicitly receive different instructions from you on or before May 15, 2020.
Plan members can continue to invest assets into, or remove assets from, Milestone 2020 until the fund matures. The Milestone funds’ Unit Value and Guaranteed Maturity Value (GMV) are available on mySunLife.ca under Investment Performance.
Plan members with money in non-registered plans will likely experience a capital gain or loss when the money transfers on June 29, 2020. The members must report capital gains or losses, if any, on their tax return in the year the transfer occurs.
There are no tax implications for money held in registered plans.
About the Sun Life Milestone Target Date series
The Sun Life Milestone Segregated Funds are the first Target Date series for employer-sponsored group retirement and savings plans in Canada to feature a guaranteed unit value at maturity (GMV). The GMV is equal to the highest month-end unit value during the lifetime of the respective fund. To receive the GMV, members must hold the Milestone fund until its maturity.
About the Sun Life Financial Money Market Segregated Fund
The goal of the Sun Life Financial Money Market Segregated Fund is to outperform the FTSE TMX 91 Day T Bill index on a risk-adjusted basis. It also seeks to protect capital and maintain liquidity by investing primarily in Canadian dollar-denominated money market instruments. Sun Life Global Investments (Canada) Inc. manages the fund with MFS Investment Management acting as the sub-advisor.
About the Sun Life Guaranteed Daily Interest Account (GDIA)
The goal of the GDIA is to preserve capital and maintain liquidity, while providing a modest daily return. The investment is an interest-bearing account with the interest credited daily. Principal and credited interest are guaranteed, although the credited interest may change on a daily basis.
Please contact your Sun Life Group Retirement Services representative.