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 December 1, 2020, we will add Capital Group Companies Inc. (“Capital Group”) as a new investment partner on our DC and DB Core investment platform. We will add the following funds:
- Capital Group U.S. Equity Fund
- Capital Group Global Equity Fund
- Capital Group Emerging Markets Total Opportunities (ETOP) Fund
About Capital Group
Capital Group is a privately owned, independent investment firm with 29 offices across Asia, Australia, Europe and the Americas. The firm has over 400 employees and manages over US$2.06 trillion in assets.
Capital Group use a proprietary approach (the “Capital System”), to manage all of their investment strategies. Every strategy has a team of portfolio managers who each manage a portion of the portfolio. The portfolio managers have diverse background and complementary investment approaches. The firm has multi-layered governance structure. Each strategy has a Principal Investment Officer who oversees the overall strategy and guides asset distribution among the portfolio managers. The firm’s Portfolio Coordinating Group and Global Investment Control groups provide additional oversight.
About Capital Group U.S. Equity
The fund’s objective is long-term growth of capital and income through investments in equity securities of U.S. issuers. The fund invests mainly in larger, well-established companies with a history of paying dividends. The fund may also invest up to 15% of its assets in companies outside the U.S. The fund’s benchmark is the S&P 500 Index.
About Capital Group Global Equity
The fund seeks long-term capital growth through investments in equity securities of companies with global scale. The fund invests in both developed and emerging markets. The fund may also invest in growth-oriented stocks. The fund’s benchmark is the MSCI ACWI index.
About Capital Group Emerging Markets Total Opportunities (“ETOP”)
The fund seeks long-term growth and capital protection by investing in equity and debt securities of emerging markets issuers. The fund seeks to achieve this objective with lower volatility of returns than emerging markets equities. This is the first emerging market fund on the core platform which invests in both equities and fixed income. The fund’s benchmark is 50% MSCI EM Investable Market Index Net; 25% JPM Gov’t Bond Index - EM Global Diversified; 25% JPM EM Bond Global Index.
Do you have to take any action?
You do not need to take any action. You may consider whether the new Capital Group funds would be suitable additions to your lineup.
Questions?
Please contact your Sun Life Group Retirement Services representative.
