Maturity of the TD Greystone 2025 Target Date Plus Segregated Fund
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).
TD Asset Management Inc. (TDAM) has announced that the TD Greystone 2025 Target Date Plus Segregated Fund (“TD Greystone 2025 Fund”) will mature by the end of 2025.
What happens to the TD Greystone 2025 Fund at maturity?
In general, when a target date fund reaches the year identified in its name, it will have reached its most conservative investment mix. This investment mix has increasingly sought more income and stability (e.g. fixed income exposure) as it approaches its target year.
The TD Greystone 2025 Fund’s asset mix will stop evolving and will become identical to the TD Greystone Retirement Plus Segregated Fund (“TD Greystone Retirement Fund”) in December 2025. In April 2026, TDAM will merge the TD Greystone 2025 Fund into the TD Greystone Retirement Fund.
Effective immediately, plan sponsors who don’t already offer the TD Greystone 2025 Fund will no longer be able to add it to their line-ups.
Sun Life will close and merge the TD Greystone 2025 Fund into the TD Greystone Retirement Fund on April 8, 2026. At that time, we’ll redirect members’ contribution instructions for the TD Greystone 2025 Fund to the TD Greystone Retirement Fund.
Plan members can keep their money in the TD Greystone 2025 Fund until April 8, 2026. Sun Life will then move plan member money into the TD Greystone Retirement Fund. Alternatively, plan members can move their money in the TD Greystone 2025 Fund to the TD Greystone Retirement Fund (or any other fund that meets their needs) any time before April 8, 2026.
For investors who hold the fund in a non-registered plan, the merger of a maturing target date fund into a retirement fund is considered a taxable event in Canada.
Tax impact
Plan members with money in a Non-Registered plan may experience a capital gain or loss when money is transferred from the TD Greystone 2025 Fund to the TD Greystone Retirement Fund. Members must report capital gains and losses in the year the transfer occurs. Sun Life will provide the applicable tax slip(s) that reflect all income from members’ Non-Registered investments.
We’ve provided more information about how capital gains/losses are generated and their impact here. We recommend that members talk with a tax professional for advice specific to their situation and taxable investments.
There are no tax implications for money held in Registered (non-taxable) plans.
About the TD Greystone 2025 Target Date Plus fund series
TD Greystone created the target date series in 2014. The series currently consists of nine funds that range in target maturity from 2025 to 2065, in five-year increments, and a retirement fund. The Funds are a unique offering due to their significant allocation to private (direct) alternative asset classes. The Funds each invest from 21% to 26% in alternatives, which consist of Canadian and global real estate, global infrastructure, commodities, and commercial mortgages. This allocation to alternatives provides additional diversification and comes with unique opportunities and risks.
We recently communicated important updates to the portfolio management team and strategic asset mix of the TD Greystone Target Date Plus series that you can view here.
How will this affect you and your plan members?
You and your plan members do not need to take any action at this time. We’ll send email communication to impacted members on September 1, 2025, and a reminder again on or around March 1, 2026. Here is a copy for your reference.
Plan members with money invested in the TD Greystone 2025 Fund as part of a non-registered plan should consider the tax impact the fund maturity and merger into the retirement fund may have on their particular situation.
Questions?
Please contact your Sun Life Group Retirement Services Representative
*In Quebec, registered as a Group annuity plans advisor.