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 fund listed below, which is established as a segregated fund in accordance with the Insurance Companies Act (Canada).
Sun Life recently discovered that incorrect benchmark returns for the Mawer Global Equity Segregated Fund (“the Fund”) were reported in Morningstar®. The incorrect returns were due to a data exchange error between Mawer Investment Management Ltd. (“Mawer”) and Morningstar® Research Inc. (“Morningstar®”). The benchmark for the fund is the MSCI All Country World Index (Net)*.
The benchmark return for the month of December 2017 only was incorrect. Morningstar® reported the one-month return as -4.48%. The correct return was -1.18%. The error affected annualized benchmark returns for the Fund in reports from January 2018 to November 2020 (when the December 2017 monthly benchmark return was revised). For example, Morningstar® reported the 3-Year annualized return as of October 31, 2020, as 5.51%, when it should have been 6.71% (1.2% greater). The annual benchmark returns for calendar year 2017 were also incorrect.
Mawer corrected the return in Morningstar® on October 30, 2020. Since November 13, 2020, all reports reflect the correct benchmark returns for the Fund.
An internal investigation identified that the error was due to human error in the data exchange between Mawer and Morningstar®. To prevent any future errors, Mawer now electronically produces the benchmark returns file that they send to Morningstar®. This reduces the amount of manual human intervention by all involved.
How does this impact you and your plan members?
It is important to note that the Fund’s returns have always been reported correctly; only the Fund’s benchmark returns were revised in Morningstar®. Revised benchmark returns are available on the plan sponsor and plan member services website and on Morningstar®.
You or your plan members don’t have to take any action because of this update.
Please contact your Sun Life Group Retirement Services representative.
* MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any data contained herein. The index data may not be further redistributed or used as a basis for other indices or any securities of financial products. This information is not approved, reviewed or produced by MSCI. Sun Life makes no representations or warranties about the completeness, reliability, and accuracy of the index source data. Any action you take upon reliance of the index source data is strictly at your own risk.