Addition of Fidelity ClearPath® Index Plus Target Date Funds to the Core investment platform
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 fund listed below, which is established as a segregated fund in accordance with the Insurance Companies Act (Canada).
You don’t need to take any immediate action as a result of this announcement, but you may consider whether the new funds are a suitable addition to your lineup
Sun Life Group Retirement Services (GRS) is pleased to announce the addition of the Fidelity ClearPath® Index Plus Series of Target Date Segregated Funds (Index Plus) to our core investment platform.
About the Index Plus Funds
Launched in March 2023, the funds seek to help members maintain their standards of living in retirement by balancing risk and reward throughout their lifetime. The strategy embraces members’ long-term investment horizons and seeks to deliver performance to support their needs for inflation-protected income in retirement.
Index Plus leverages the same portfolio management team and resources for the Fidelity ClearPath® fund series (Blend) which we already offer on Sun Life’s platform. While the Blend series invest in a mix of active and passive strategies, Index Plus are designed to provide exposure to public equity and fixed income markets, primarily by investing in funds that passively track broad market indexes. The “Plus” in the name refers to an allocation of up to 5% in alternative asset classes that are actively managed. Fidelity believes that this allocation can improve the diversification benefits of the Index Plus funds. The initial alternatives allocation is through direct real estate sub-advised by Brookfield Asset Management. As of March 31, 2025, Index Plus’ allocation to alternatives was only 0.5% across the glidepath.
The key decision makers are Co-Portfolio Managers Bruno Weinberg Crocco, Andrew Dierdorf and Brett Sumsion. They have been managing the Fidelity ClearPath® Canadian Target Date Funds since 2005, 2014, and 2019 respectively. The Co-Portfolio Managers are responsible for all investment decisions, including glide path design, manager selection, implementation, and risk management.
The ClearPath® Index Plus glidepath is identical to that of the ClearPath® Blend fund series. Like ClearPath® Blend, the glidepath is ‘Through’ retirement. This means that the strategic asset allocation continues to adjust after retirement, to reflect the changing mix of risks that plan members face through their lifetimes. Below is an illustration of the glidepath.
Glide path: Allocation to equity (%)1
1Assumes retirement age is 65. "Through" glide path is shown for illustration purposes only and may not represent the actual allocations of Fidelity's ClearPath strategies.
2Source: Environics Research, Fidelity Asset Allocation Study. Study sampled 239 advisors from December 2, 2016, to December 14, 2016.
The asset allocations as of March 31, 2025 are provided.
The Statement of Investment Policies and Procedures documents for both Fidelity ClearPath® fund series are available on the plan sponsor website.
About Fidelity Investments Canada
Fidelity Investments Canada ULC was established in 1987 and is part of Fidelity Management and Research (FMR), one of the world’s largest privately owned financial services companies. FMR, which was founded in 1946 and is based in Boston, Massachusetts, manages over $3 trillion in assets. Fidelity is well known for its actively managed equity and fixed income solutions but also manages alternative and multi-asset solutions for its institutional and retail clients.
Fidelity has a large worldwide network of research offices and analysts. Its investment strategies rely on analysts conducting on-the-ground proprietary research. Fidelity focuses on four major principles: individual security selection, extensive fundamental research, manager-driven decision-making, and an adherence to proven investment discipline.
Target Date funds available on the Sun Life core investment platform
The GRS core platform now offers both Institutional versions of Fidelity’s ClearPath® target date suites:
- Blend (current) – Primarily active with a small allocation to alternatives
- Index Plus (new) – Primarily passive with a small allocation to alternatives
The fees for ClearPath® Index Plus with be lower than the fees for ClearPath® Blend, reflecting the former’s primary focus upon passive management.
We are committed to offering choice in one of the most important categories for Capital Accumulation Plans – Target Date. With this addition, we now offer plan sponsors access to seven unique Target Date investment options on the core platform.
As published in our recent Designed for Savings report, 42% of the GRS plan member assets are invested in target date funds. Additionally, target date funds are the default fund choice for 81% of plan sponsors.
While target date funds are often thought of as a “set-it-and-forget-it” option for members, we encourage plan sponsors to review their target date option, which is often the default choice, every few years. The updated CAPSA Guideline No. 3 also outlines the importance of selecting an appropriate default option for plans.
Do I have to take any action?
You don’t need to take any action. You may consider whether the new funds are a suitable addition to your lineup. The GRS Investment Solutions team, in partnership with your consultant or advisor, can help with a thorough review of target date options available on the platform.
Questions?
Please contact your Sun Life Group Retirement Services Representative.
*In Quebec, registered as a Group annuity plans advisor.