Revised benchmark returns for Sun Life Milestone Target Date Segregated Funds
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).
SLGI Asset Management Inc. (SLGI) recently notified Sun Life Group Retirement Services (GRS) that benchmark returns for the Sun Life Milestone Target Date Segregated Funds (“Milestone Funds”) reported in Morningstar® were incorrect.
SLGI cited a miscommunication among their reporting team as the reason for the error.
The error affected benchmark returns from April through October 2022. SLGI corrected them on December 8, 2022. The table below shows the difference between the incorrect and revised benchmark returns.
|
|
April - October 2022 Returns |
April - October 2022 Revised Returns |
Difference |
|---|---|---|---|
2025 Milestone Benchmark |
-2.56% |
-2.59% |
-0.03% |
2030 Milestone Benchmark |
-5.78% |
-5.87% |
-0.09% |
2035 Milestone Benchmark |
-10.14% |
-10.38% |
-0.24% |
2040 Milestone Benchmark |
-13.55% |
-13.97% |
-0.42% |
2045 Milestone Benchmark |
-16.22% |
-16.73% |
-0.51% |
2050 Milestone Benchmark |
-18.53% |
-19.12% |
-0.59% |
2055 Milestone Benchmark |
-20.32% |
-20.92% |
-0.60% |
2060 Milestone Benchmark |
-22.35% |
-22.56% |
-0.21% |
All annualized benchmark returns for the Milestone Funds were affected by the error. Morningstar® reported the incorrect benchmark returns between May 5, 2022, and December 8, 2022 (when SLGI revised the returns). All reports run after December 8, 2022, reflect the correct benchmark returns for the Milestone Funds.
SLGI has applied the following processes to prevent any future errors:
- A review of employee on-boarding and data collection processes; and
- Additional risk controls.
How does this affect you and your plan members?
It’s important to note that the returns of the Milestone Funds have always been correct. SLGI revised only the Milestone Funds’ benchmark returns. 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.
Questions?
Please contact your Sun Life Group Retirement Services representative.