Fidelity adds new 2065 fund to Fidelity ClearPath Target Date Fund series

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).

Fidelity Investments Canada (“Fidelity”) has added a new target date fund to its Fidelity ClearPath Target Date series of funds. Effective April 11, 2023, the Fidelity ClearPath 2065 Segregated Fund (“ClearPath 2065”) will be available on Sun Life’s DC Core Investment Platform

ClearPath 2065 will also be available on the Group Choices Plans.

Investment managers periodically add new longer-dated funds to their target date series to match the time horizons of younger plan members. Plan members expecting to retire around the year 2065 may benefit from these new funds. The ClearPath 2065 fund’s target asset mix will initially be very similar to the ClearPath 2060 fund but will diverge over time. 

How will this affect you and your plan members? 

You or your plan members don’t have to take any action. If you currently offer the Fidelity ClearPath Target Date Funds to your members, we’ll automatically add the ClearPath 2065 to your line-up on April 11, 2023. 

We’ll post a notice at mySunLife.ca about the ClearPath 2065 addition for members who currently invest in the ClearPath 2055 or ClearPath 2060 Funds. Before the ClearPath 2065 addition, ClearPath 2055 and ClearPath 2060 were the funds with the longest maturity. Younger plan members who joined their plan(s) recently might have defaulted into or selected ClearPath 2055 or ClearPath 2060. If they expect to retire around the year 2065, they may review and decide whether ClearPath 2065 is more appropriate for them. Members may also direct future contributions to the ClearPath 2065. 

If members choose to move assets from a different fund to ClearPath 2065, the transaction may trigger realized capital gains. This may be deemed a taxable event in non-registered plans. 

The notice is available in the Communications section at mySunLife.ca.

Plan members can still access the series of funds available within their plan through mySunLife.ca.

About the Fidelity ClearPath series of target date funds

The goal of the Fidelity ClearPath Target Date Funds (ClearPath Funds) is to help plan members maintain their standard of living in retirement by balancing risk and return throughout their lifetime. Fidelity’s investment team strives to balance the need for capital appreciation in the working years with the need for capital preservation and retirement income after retirement. Thus, the Fidelity ClearPath® target date series follows a "through retirement" glidepath where the asset mix continues to change by decreasing equity exposure after retirement age.

The ClearPath Funds are broadly diversified by asset class, geographic region and style. They also incorporate a mix of passive and active investments, as well as alternative asset classes such as real estate and commodities. The investment team may change the asset mix on tactical basis to adapt to changing market conditions and take advantage of investment opportunities.

Questions?

Please contact your Sun Life Financial Group Retirement Services representative.