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. They are established as segregated funds under the Insurance Companies Act (Canada).

We’re pleased to announce the addition of BlackRock Global Infrastructure Equity Index Segregated Fund (the Fund) to our DC and DB Core investment platform. The new Fund is available effective March 1, 2023. 

The Fund is a passive fund that aims to replicate the Dow Jones Brookfield Infrastructure Index (the Index). The Index provides exposure to infrastructure companies globally that obtain the majority of their cash flows from owning and operating infrastructure assets. The Index covers all infrastructure sectors including:

  • Airports
  • Toll roads
  • Ports
  • Communications
  • Water
  • Electricity transmission and distribution
  • Oil and gas storage and transportation

As of December 30, 2022, the Index consisted of 99 companies and the top 10 holdings represented 44% of the Index by market capitalization. 

A high concentration in the top 10 holdings is quite common in infrastructure indices. The top 10 holdings in the FTSE Developed Core Infrastructure Index and S&P Global Infrastructure Index made up 39% and 38% of the indices, respectively. 

The Fund is an addition to our existing offerings in infrastructure: 

  • Lazard Global Listed Infrastructure Segregated fund (active listed infrastructure fund on DC and DB Core investment platform) 
  • IFM Global Infrastructure Segregated fund (active direct infrastructure fund on DB Core investment platform and special DC Custom Portfolios which allow for investments in non-daily valued/traded funds)

Why invest in infrastructure?

Infrastructure companies have historically provided a predictable income stream from long-term leases and contracts of underlying assets. Investments in infrastructure tend to preserve value in inflationary environment. Infrastructure also serves as a diversifier due to its low correlation to traditional asset classes, such as equity and fixed income. 

The Fund provides plan sponsors and plan members with a low-cost option to invest in infrastructure. 

Do you have to take any action? 

The fund addition doesn’t affect you and your employees. As such, you do not need to take any action. You may wish to consider whether the new fund is a suitable addition to your lineup. 

Questions?

Please contact your Sun Life Group Retirement Services representative.