Auto ladder investment option

What is the laddering strategy?

Laddering is a technique to manage the ups and downs of interest rates. A deposit is split equally between five guaranteed investments ranging from one-year to five-year terms. As each guaranteed investment matures, it is reinvested in another 5-year term.

This technique ensures the client has one investment maturing each year minimizing the interest rate risk and allowing for some liquidity in their portfolio.

What is the auto ladder investment option?
  • The auto ladder option allows clients to automatically apply a laddering strategy to their investments.
  • Their deposit will be split into five guaranteed interest investments and as each investment matures, it will be automatically invested in a new five-year investment at the applicable rate as of the maturity date.
How do I request the auto ladder investment option?
  • The applications have been updated to include this option.
  • Simply indicate AL in the guaranteed period or end date column and the rate column in the Investment Direction section of the application.
What rates will my client receive?
  • The rates applied will be the rates in effect as of the application signed date if the committed rate box ‘yes' is selected and the application is faxed to Sun Life Financial on the same date the application is signed. If the rate is not committed or faxed to our office the rates applied will be the rates in effect on the date the funds are received at Sun Life Financial.
  • Upon renewal, the investments will receive the five year rate in effect at the maturity date.