Invesco Global Listed Real Estate Segregated Fund Closure and Asset Transfer

Action may be required

You don’t have to take action if you are comfortable with the replacement fund described below. If you wish to select a different replacement fund, please review the communication in detail.

Sun Life Group Retirement Services (GRS) regularly reviews the Core investment platform in response to Client interest and evolving fund offerings in the market.

Effective immediately, Sun Life will no longer offer the Invesco Global Listed Real Estate  Segregated Fund (the discontinued fund) as part of the Core investment platform. We’ll close the discontinued fund on June 3, 2026. We’ll continue to conduct governance activities on the discontinued fund and members may continue to invest in and contribute to the discontinued fund until its closure.

We have decided to close the discontinued fund due to lack of client interest and low assets. In addition, we placed the discontinued fund ‘On Watch’ due to high turnover of key decision makers over the last few years, and changes to the management of the strategy. The listed real estate team has lost two Chief Investment Officers and three portfolio managers since 2022. The most recent departure of a portfolio manager (James Cowen) happened in November 2025.

It is important to note that on the Defined Benefit platform, we continue to offer the Invesco Global Direct Real Estate (GDRE) Segregated Fund. GDRE is a direct fund, while the discontinued fund is listed.

On June 3, 2026, we’ll transfer any money in – and any future contributions directed to - the discontinued fund to the replacement fund as listed below.

The replacement fund invests in the same asset class of global listed real estate securities. 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 case, we’ll add the replacement fund to your fund lineup on the same day, before the asset transfer occurs on June 3, 2026.

The transfer will happen as described above, unless we receive different instructions from you in writing (see next paragraph).

You may want to transfer the money in the discontinued fund into either:

• Another fund currently available in your line-up, or
• An alternative 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, you need to make this selection and inform Sun Life of your decision by April 3, 2026.

You don’t have to take any action if you are satisfied with the automatic replacement fund and transfer date as described above.

How will this affect your members?

On June 3, 2026, we’ll automatically transfer any money remaining in – and any future contributions directed to – the discontinued fund to the replacement fund. When the change happens, your members will see a sale of the discontinued fund and the purchase of the replacement fund in their account(s). These transactions may result in a taxable capital gain or loss for your members invested in a Non-Registered plan.

We’ll send an email to members who currently hold the discontinued fund on or around April 17, 2026. Here is a copy for your reference.

Plan members can also 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 June 3, 2026.

Sun Life will provide the applicable tax slip(s) in early 2027. The tax slip(s) will reflect(s) all income from your members’ Non-Registered investments.

For more information on how capital gains can occur in segregated funds within Non-Registered plans, please read the article here. Members can find their ACB on Plan Member Services website mysunlife.ca and selecting Check on Account > Balances.

Replacement Fund

The MFS Global REIT Segregated Fund invests primarily in Real Estate Income Trusts (REITs) listed in developed markets globally.

MFS views real estate as a hybrid asset class and as such considers equity, credit and commercial real estate perspectives. The investment team employs a bottom-up, fundamental approach combining both a defensive and value-oriented style. MFS leverages its multi-disciplined global research platform to identify reasonably valued, high quality real estate companies with above average growth prospects. The Fund holds 45-65 securities diversified across various market capitalization, geographies, property types and business models.

The fund’s benchmark is the FTSE EPRA/NAREIT Developed (Net Dividends) (Canadian Dollar).

Richard Gable (lead) and Mark Syn are Co-Portfolio Managers of the fund. 

Performance comparisons – 10 years ending September 30, 2025 (annualized):

You can obtain more information about the MFS Global REIT Segregated Fund by accessing the Morningstar section of the plan sponsor web site.