Enhancements to the Sun Life Granite Target Risk funds
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).
In November 2024, SLGI Asset Management (SLGI) announced changes to two of the funds held within the Sun Life Granite Target Risk Series of Segregated Funds (Granite TRFs). SLGI also provided an update on enhancements initially announced in 2023 as part of their annual strategic review.
Two Fund Changes:
1) In October 2024, SLGI made a change to the global mid-cap equity fund in Granite TDFs. Specifically, SLGI replaced the Sun Life Schroder Global Mid Cap fund with an equal split between the MFS Global Small-Mid Cap Equity Value and Acadian Global Small Cap Equity Funds.
The MFS fund is managed by a global research team with expertise in global and small cap investing. SLGI’s view is that the team has the breadth to cover global small cap stocks well, and to uncover undervalued opportunities.
The Acadian fund is managed with a quantitative bottom-up approach and is benchmarked to the MSCI ACWI Small Cap index. SLGI believes that Acadian’s quantitative process has the potential to uncover value-add opportunities in less researched/covered small cap stocks.
SLGI believe the blend of these two new mandates will offer asset class diversification, style diversification and the potential for enhanced risk-adjusted returns.
2) In November 2024, SLGI replaced the Beutel Goodman Canadian Equity Fund with PH&N Canadian Equity Value Fund.
The PH&N fund is managed with a Value approach and is based on fundamental research. They also consider quantitative and technical factors. The fund’s benchmark is the S&P/TSX Capped Composite Index.
SLGI selected PH&N because of their deep research capabilities and strong track record.
They believe the PH&N fund will offer style diversification and the potential for enhanced risk-adjusted returns. Lastly, SLGI cited that the PH&N fund would be a stronger complement within the overall Granite TDFs portfolios.
Updates Enhancements announced in 2023:
Earlier this year, we communicated SLGI’s 2023 annual enhancements to the Granite TRFs.
SLGI announced their replacement of the Sun Life MFS International Value fund with the Acadian International Equity fund. They made this change in five increments. The final increase to Acadian happened on November 1, 2024, and this reallocation is now complete.
Sun Life GRS Investment Solutions View
We are generally comfortable with SLGI’s enhancements and rationale. We have requested some follow-up information to confirm our understanding. We will be closely monitoring their implementation, and we will provide further updates as necessary.
There is no impact to fees charged to members due to these changes.
Do you have to take any action?
This update is for your information only. You don’t need to take any action.
Questions?
Please contact your Sun Life Group Retirement Services representative.