Maturity of the Sun Life 2025 Milestone® Segregated Fund
Plan sponsors may wish to consider whether this news has implications for the investment options within their plan. Sun Life Assurance Company of Canada purchases units of the fund listed below. This is established as a segregated fund in accordance with the Insurance Companies Act (Canada).
On June 30, 2025, the Sun Life 2025 Milestone® Segregated Fund (“Milestone 2025”) will reach maturity.
Upon maturity, Milestone 2025 will have reached its most conservative investment mix. This means a 100% allocation to bonds that are close to their maturity dates. On this date, Sun Life will automatically transfer the assets in – and any future contributions directed to - Milestone 2025, as follows:
Fund option available in your plan(s) |
Sun Life’s action at maturity |
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|---|---|---|
Plans offering Guaranteed Daily Interest Account (“GDIA”) |
Sun Life will automatically transfer the money in Milestone 2025 to the GDIA. |
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Plans offering both a Money Market fund and GDIA |
Sun Life will automatically transfer the money in Milestone 2025 to the GDIA. |
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Plans offering:
|
Sun Life will automatically transfer the money in Milestone 2025 to the Money Market fund in the plan(s). |
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Plans offering SL Milestone Target Date series and another Target Date series |
Sun Life will automatically transfer the money in Milestone 2025 to GDIA or Money Market fund in the plan, per above. ACTION MAY BE REQUIRED If you want to transfer the money in Milestone 2025 to the Retirement fund of another Target Date series available in your plan, please notify your Sun Life representative before March 28, 2025. |
The transfer will happen unless we explicitly receive different instructions from you before March 28, 2025. You don’t have to take any action if you’re satisfied with the suggested transfer above.
How will this affect your members?
On June 30, 2025, we’ll close the Milestone 2025 Fund and transfer any money in the Fund to either GDIA, Money Market or the Retirement Fund of another Target Date series as outlined above.
This change won’t 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 may experience a capital gain or loss when we transfer the money to the replacement fund. The members must report capital gains and losses in the year the transfer occurs. Sun Life will provide the applicable tax slip(s) in February or March 2026. The tax slip(s) will reflect all income from your members’ Non-Registered investments.
We’ve provided more information about how capital gains/losses are generated and their impact here. We recommend that your members talk with a tax professional for advice specific to their situation and taxable investments.
About the Sun Life Milestone Target Date series
The Sun Life Milestone Segregated Funds are a unique target date series, in that they feature a guaranteed unit value at maturity (GMV). The GMV is equal to the highest month-end unit value during the lifetime of the respective fund. To receive the GMV, members must hold the Milestone fund until its maturity.
The GMV for Milestone 2025 relative to its current unit value as of December 31, 2024, is depicted below:
About the Sun Life Guaranteed Daily Interest Account (GDIA)
The goal of the GDIA is to preserve capital and maintain liquidity, while providing a modest daily return. The investment is an interest-bearing account with the interest credited daily. Principal and credited interest are guaranteed, although the credited interest may change on a daily basis.
About the Sun Life Financial Money Market Segregated Fund
The goal of the Sun Life Financial Money Market Segregated Fund is to outperform the FTSE TMX 91 Day T Bill index on a risk-adjusted basis. It also seeks to protect capital and maintain liquidity by investing primarily in Canadian dollar-denominated money market instruments. Sun Life Global Investments (Canada) Inc. manages the fund with MFS Investment Management acting as the sub-advisor.
Important Reminder: Call to Action for plan sponsors to review the Sun Life Milestone® Target Date Segregated Funds in their plans
In May 2024, we sent out an investment update to encourage plan sponsors who offer the Sun Life Milestone® Target Date Segregated Funds in their plans to review whether the Funds are still an appropriate option for their plan members, particularly in cases where these funds are the default option. If you have not already done so, please contact your Investment Solutions Executive, GRS representative and/or advisor to discuss this update in further detail and review the target date options in your plan, as part of your ongoing investment governance.
Questions?
Please contact your Sun Life Group Retirement Services representative (In Quebec, registered as a Group annuity plans advisor).