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. They are established as segregated funds under the Insurance Companies Act (Canada).

In the first quarter of 2024, Dynamic Funds announced changes within the Dynamic Equity Income Team that sub-advises the Sun Life Dynamic Equity Income and Sun Life Dynamic Strategic Yield segregated funds on Sun Life’s core investment platform. Effective January 2024, Oscar Belaiche stepped down as Head of the Equity Income Team, succeeded by co-Head, Jason Gibbs. Additionally, Belaiche relinquished his role as the lead Portfolio Manager (PM) for the Sun Life Dynamic Strategic Yield fund. However, he remains a co-PM on the strategy.

Jason Gibbs, now Head of the Equity Income team, has assumed the Lead PM role on Dynamic Strategic Yield from Belaiche. Derek Amery will continue as a co-PM with oversight of the fixed income allocation. Gibbs is a longstanding member of the Dynamic Equity Income Team, serving for 16 years, with five years as an analyst and 11 years as a Portfolio Manager, until his early retirement in 2018. Gibbs returned to the firm in late 2021 as Co-Head of the Equity Income Team, and was again named a co-PM on both the Dynamic Equity Income and Dynamic Strategic Yield strategies.

The Lead PM on Dynamic Strategic Yield is responsible for the equity portion of the strategy, as well as for setting the asset mix. A monthly oversight meeting between the Equity Income Team (led by Gibbs and Belaiche) and the Fixed Income Team (led by Derek Amery and Domenic Bellissimo / Bill Lytwynchuk) remains unchanged.

These changes have reduced Oscar Belaiche's portfolio management responsibilities to nine funds (across seven strategies), down from over 30 funds in mid-2021. He continues to actively serve as a co-PM for the Dynamic Equity Income strategy, where Bill McLeod continues to act as Lead PM.

Sun Life Global Investments (SLGI) is the manager of Sun Life Dynamic Equity Income and Sun Life Dynamic Strategic Yield funds, while Dynamic Funds is the sub-advisor. Dynamic Funds informed SLGI that Oscar Belaiche stepped down as Head of the Equity Income team and is being replaced by Co-Head, Jason Gibbs. Given Oscar Belaiche’s primary role in the management of the fund, SLGI intends to closely monitor the strategy over the next few months. SLGI believes that there is a level of continuity amidst the transfer of responsibilities as Jason Gibbs has been with the firm for over 20 years and has worked closely with Oscar Belaiche.

Sun Life GRS Investment Solutions’ view

We are generally comfortable with the changes to Equity Income Team. While we anticipated more advance notice regarding these changes, we have expected the changes since Jason Gibbs rejoined the firm in a leadership position.

We recognize Oscar Belaiche's reduction in responsibilities is part of a longer-term succession plan as he transitions towards retirement. The Sun Life GRS Investment Solutions team will continue to monitor these organizational changes and provide updates as necessary.

Questions?

Please contact your Sun Life Group Retirement Services representative.