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 a segregated funds under the Insurance Companies Act (Canada).
Sun Life regularly reviews the fund offerings in response to client interest and evolving fund offerings in the market.
On October 24, 2023, we’ll close Franklin Global Growth segregated fund (“discontinued fund”). We have decided to close the discontinued fund due to lack of client interest in the fund after nine years of the fund being on the platform.
On October 24, 2023, we’ll transfer any money in – and any future contributions directed to - the discontinued fund to Sun Life MFS Global Growth segregated fund (“replacement fund”). The transfer will happen automatically unless we explicitly receive different instructions from you (see “Action may be required” section below).
The discontinued and replacement funds have the same style (Growth) and same approach (fundamental, bottom-up security selection). The investment management fees for the replacement fund will be the same, or lower, than those for the discontinued fund.
Your plan(s) may not currently offer the replacement fund in the lineup. In that situation, we’ll automatically add the replacement fund to the lineup before the asset transfer occurs.
Sun Life’s governance activities on the discontinued fund will end after the fund closure.
Action may be required
You may want to transfer the money in the discontinued fund into either:
- another global equity fund currently in your line-up, or
- an alternative global equity fund on the Core investment platform which better suits your plan’s needs.
If you wish to select a different replacement fund and/or asset transfer date before October 24, 2023, you need to make this selection and inform Sun Life of your decision by September 15, 2023.
You don’t have to take any action if you are satisfied with the automatic replacement fund and date suggested above.
How will this affect your members?
On October 24, 2023, we’ll automatically transfer any money remaining in – and any future contributions directed to – the discontinued fund to the replacement fund. When the changes are implemented, plan members will see a sale of the discontinued fund and the purchase of the replacement fund reflected in their accounts. This change will not result in a taxable capital gain or loss for plan members if their money is invested in a registered plan.
Plan members with money in a non-registered plan will likely experience a capital gain or loss when we transfer the money to the replacement fund. The members must report capital gains in the year the transfer occurs.
Plan members can move their money to any other funds offered in the plan. They can do so at any time before the transfer automatically takes place on October 24, 2023.
About the Sun Life MFS Global Growth segregated fund
SLGI Asset Management Inc. is the manager of the replacement fund with MFS Institutional Advisors Inc. (MFS) acting as the sub-advisor. The replacement fund seeks capital appreciation by investing primarily in equity securities of companies with above-average earnings growth potential. MFS employs fundamental analysis to assess their growth potential considering their current financial condition and industry position, as well as market, economic, political and regulatory conditions.
Both funds may invest in the Emerging Market countries. The replacement fund is more diversified (90-110 securities) than the discontinued fund (approximately 35 securities).
Questions?
Please contact your Sun Life Group Retirement Services representative.
