Plan sponsors may wish to consider whether this investment news has any implications for the investment options available within their plans. 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.

Effective March 1, 2021, Sun Life added AlphaFixe Capital Inc. (“AlphaFixe”) as a new investment partner on our core investment platform. We will add the following funds:

  • AlphaFixe Return Plus Fund (DC and DB core platforms)
  • AlphaFixe Floating Rate Bank Loan Fund (DB core platform only)

 

About AlphaFixe

Founded in 2008, AlphaFixe is a Quebec based independent investment firm. They are 100% privately owned by their investment professionals. The firm managed C$6.8 billion in AUM as of December 31, 2020.

AlphaFixe specialize in fixed income and serves only institutional Clients. The firm’s investment philosophy was inspired by the consequences of the 2008 financial crisis. It relies on a rigorous risk management process. Their stated mission is “to constantly create value using a fundamental approach based on the assets' intrinsic value, while maintaining a binding risk budget.”

 

About AlphaFixe Return Plus

The fund’s objective is to preserve capital. To achieve this, it employs a diversified set of sources of added value. The investment style is a combination of top-down macroeconomic themes/forecasts and bottom-up fundamental analysis that allows them to take controlled risks based on fundamental long-term view. The Plus component of the strategy invests in the AlphaFixe Floating Rate Bank Loan fund (described below). The fund’s benchmark is the FTSE Canada Universe bond Index.

 

AlphaFixe Floating Rate Bank Loan

The fund seeks to invest in first lien floating rate bank loans while prioritizing capital preservation. The investment style is a combination of top-down and bottom-up active management. The manager’s philosophy is capital preservation through fundamental analysis. The portfolio is diversified by issuer and by industry, with an investment focus on non-cyclical industries. The fund’s benchmark is the Credit Suisse Leveraged Loan Index (50% BB / 50% B - Hedged in CAD) Index. This index tracks the investable market of the U.S. dollar denominated leveraged loan market. It consists of issues rated BB and BB-. All loans are funded term loans with a tenor of at least one year and are made by issuers domiciled in developed countries.

AlphaFixe’s credit analysis process has integrated Environmental, Social, and Governance (ESG) factors since inception. AlphaFixe became a signatory to the United Nations’ Principles of Responsible Investment (UNPRI) in 2009.

 

Do you have to take any action?
You do not need to take any action. You may consider whether the new funds would be suitable additions to your lineup.

 

Questions?
Please contact your Sun Life Group Retirement Services representative.