MFS Responsible and Sun Life Dynamic Segregated Funds closures and asset transfers

We have decided to close the discontinued funds due to the following reasons:

• MFS Responsible funds – MFS decided to close its suite of Responsible funds to new clients in July 2022. MFS made this decision because the Responsible Funds’ exclusionary screening process is not aligned with MFS’ integration approach to sustainable investing.
• Sun Life Dynamic funds – lack of client interest.

On May 13, 2025, we’ll transfer any money in – and any future contributions directed to - the discontinued funds to the replacement funds listed above.

The investment management fees for the replacement funds will be the same, or lower, than those for the discontinued funds.

Your plan(s) may not currently offer the replacement fund in the lineup. In that situation, unless you inform us otherwise, we’ll automatically add the replacement fund to the lineup before the asset transfer occurs.

Action may be required

The transfer will happen, unless we explicitly receive different instructions from you (see next paragraph).

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

• fund(s) currently in your line-up in a similar asset class, or
• an alternative on the Core investment platform which better suits your plan’s needs.

If you wish to select a different replacement fund(s) and/or asset transfer date, you need to make this selection and inform Sun Life of your decision by March 5, 2025.

You don’t have to take any action if you’re satisfied with the automatic replacement fund and transaction date specified above.

How will this affect your members?

On May 13, 2025, we’ll automatically transfer any money remaining in – and any future contributions directed to – the discontinued fund(s) to the replacement fund(s). When the change happens, your members will see a sale of the discontinued fund(s) and the purchase of the replacement fund(s) in their account.

This change will not result in a taxable capital gain or loss for plan members if their money is invested in a Registered plan.

Members with Non-Registered money will likely experience a capital gain or loss when we transfer the money to the replacement fund(s). These members must report capital gains or losses on their tax return 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.

For more information on how capital gains can occur in segregated funds within Non-Registered plans, please read the article here.

Plan members can also move their money to any other funds offered in the plan. They can do so at any time before or after the transfer automatically takes place on May 13, 2025.

We’ll send email communication on or around March 27, 2025, to members who have money in the discontinued fund(s). Here is a copy for your reference.

Regarding the replacement funds

The RBC Vision funds use similar screens as the MFS Responsible funds to exclude certain companies based on a certain principle or set of values. These funds exclude companies involved in businesses similar to those identified by MFS (i.e. alcohol, tobacco, weapons, gambling, adult entertainment, cannabis). They also exclude companies that have lowest Environment, Social and Governance scores according to Sustainalytics and those involved in severe controversies.  

The PH&N Dividend Income Fund has a similar investment objective as the Sun Life Dynamic Equity Income. Both funds primarily invest in equity securities that pay a dividend or other income. They have a similar yield profile: SL Dynamic Equity Income (3.2%) compared to PH&N Dividend Income (3.3%).

The Sun Life MFS Diversified Income Fund has a similar investment objective as the Sun Life Dynamic Strategic Yield Fund. Both funds primarily invest in fixed income and income-oriented equity securities. 

Questions?

Please contact your Sun Life Group Retirement Services representative (In Quebec, registered as a Group annuity plans advisor).