Strategic asset allocation updates for the Sun Life Granite Target Date and Target Risk 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).
Plan sponsors don’t need to take any immediate action as a result of this update.
The Sun Life Global Investments (SLGI) Multi-Asset Solutions Team recently made changes to the Granite Target Date and Granite Multi-Risk Target Date series of segregated funds (Granite TDFs), as well as the Sun Life Granite Target Risk Series of Segregated Funds (Granite TRFs).
The strategic asset allocation changes are part of SLGI’s annual strategic review process. SLGI updates capital markets assumptions and models various asset classes to determine an optimal asset mix for the Granite funds. SLGI increases allocations to asset classes that they expect to increase the return, lower the risk, and/or increase diversification in the portfolios. We have outlined the key changes below.
The strategic allocation changes to the Granite TDFs are as follow:
Strategic asset allocations changes |
Fixed income |
Equities |
|---|---|---|
Increase |
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Decrease |
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The strategic allocation changes to the Granite TRFs are as follow:
Strategic asset allocations changes |
Fixed income |
Equities |
|---|---|---|
Increase |
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Decrease |
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Update on the global direct real estate investment strategy
SLGI announced the addition of a direct real estate investment strategy to the Granite TDFs – the BGO SLGI Global Real Estate Fund LP. This follows the recent addition of other alternatives/real asset funds - Direct Infrastructure and Liquid Alternatives – to the Granite TDFs that we communicated previously (2023 Communication).
The BGO SLGI Global Real Estate Fund LP is a new globally diversified real estate portfolio with multi-family, industrial, office, retail, and logistics assets that seeks to outperform its benchmark, the Global Real Estate Fund Index (GREFI).
The inclusion of direct real estate should be beneficial to the funds by adding a further element of diversification with low or negative correlation to traditional asset classes. Direct real estate can also benefit from enhanced yields due to an illiquidity premium, and potential inflation protection.
About BGO
BGO is leading global estate investment management advisor with CAD $123 billion of AUM as of March 31, 2025. The firm has a presence in 25 cities across 12 countries. SLGI considers selected BGO for their disciplined investment strategy and alignment of interests through management ownership.
GRS Investment Solutions team view
We are comfortable with the asset allocation changes to the Granite Target Date and Target Risk funds. We view the addition of a new global direct real estate fund positively, due to its potential diversification benefits. It is a continuation of SLGI’s plan to add more alternatives and real assets to the Granite funds, following the additions of Direct Infrastructure and Liquid Alternatives in 2024. We will continue to monitor the Granite target date and target risk funds and provide further updates as needed.
A copy of the changed SIP&P is available on Sun Life’s Plan Sponsor Services website at sunlife.ca/sponsor. When logged into the website, under the Administration and reporting tab, choose Group Retirement Services. Then, on the top navigation menu, choose Investments>> Governance reports.
Questions?
Please contact your Sun Life Group Retirement Services representative*.
*In Quebec, registered as a Group annuity plans advisor.