Heads-up: Addition of TD Greystone Target Date Plus 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 funds listed below, which are established as segregated funds in accordance with the Insurance Companies Act (Canada).
Sun Life Group Retirement Services (GRS) is pleased to announce the upcoming addition of the TD Greystone Target Date Plus Series of Segregated Funds (the Funds). The Funds will be available on our Core investment platform in March 2023. Given the importance of target date funds in Capital Accumulation Plans, we’re providing this update ahead of their official launch on platform. We’ll provide more details closer to when the Funds become available.
About the TD Greystone Target Date Plus Funds
The Funds were created in 2014 and the series currently consists of nine funds that range in target maturity from 2025 to 2060, in 5-year increments, and a retirement fund. The Funds are a unique offering on the Core platform, due to their significant allocation to alternative asset classes. The Funds each invest 20-25% in alternatives, which consist of Canadian and global real estate, global infrastructure and commercial mortgages. This allocation to alternatives has the potential for improved risk and return characteristics, when compared to other existing target date funds available on the Core platform, which currently include minimal or no allocation to direct alternatives.
The Funds’ objective is to seek to deliver strong long-term returns and reduce volatility of each vintage as the maturity date approaches. To reduce the Funds’ volatility as the maturity date nears, investments in risker assets (i.e., equities) will decrease, while investments in lower risk assets (i.e., fixed income) will increase. Primary investments include: i) equity, ii) bonds, iii) global & Canadian real estate, iv) infrastructure, and v) commercial mortgages.
Do you have to take any action?
You don’t need to take any action. You may consider whether the new funds would be a suitable addition to your lineup.
Questions?
Please contact your Sun Life Group Retirement Services representative.