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 July 2021, we communicated that TD Asset Management Inc. (TDAM) had announced the retirement of Jean Masson, Managing Director, Quantitative Equity Team (“QE Team”), and the promotion of Julien Palardy to replace Masson as leader of the QE Team starting on August 1, 2021. Palardy had been the lead portfolio manager for TDAM Low Volatility Canadian Equity, TDAM Low Volatility U.S. Equity and TDAM Low Volatility Global Equity funds (the funds) on our core investment platform. TDAM also announced that Louis-Philippe Roy, VP & Director, would assume Palardy’s lead portfolio management duties on August 1, 2021.
On August 13, 2021, after TDAM’s announcement and our communication, Roy departed from TDAM. As a result, Laurie-Anne Davidson, VP & Director, is the lead portfolio manager for the TDAM Low Volatility Canadian Equity and TDAM Low Volatility U.S. Equity funds. Emin Baghramyan, VP & Director, is the lead portfolio manager for the TDAM Low Volatility Global Equity fund. Julien Palardy continues in his leadership role on the QE Team.
Davidson has 22 years of total investment experience focused on Canadian and U.S. strategies. Baghramyan has 14 years of total investment experience focused on global strategies.
The portfolio management team for quantitative equities has now been reduced from four to two professionals after Palardy’s recent promotion and Roy’s departure. Philip Gendreau has joined the portfolio management team on a part-time basis. He is a member of Research & Development within the QE Team. TDAM also plans to hire a fourth portfolio manager soon.
Sun Life GRS Investment Solutions’ view
Sun Life’s GRS Investment Solutions team view the Roy’s departure as another significant loss of experience within the portfolio management team for the funds.
We met with TDAM to discuss the changes to the QE Team. Roy’s decision was sudden and has led to more shuffling of roles within the QE Team. Portfolio managers for the low volatility strategies are primarily responsible for risk management. This includes adjusting the portfolios based on information that the model does not capture.
We believe that the losses have been somewhat mitigated by Palardy’s oversight of the team, which is relatively large. Across Data Computation, Research & Development, and Portfolio Management functions, TDAM’s QE Team has 14 investment professionals.
In August 2021, we placed the three funds on our Watch List under the Additional Monitoring category.
We’ll continue to monitor the team and assess any new personnel additions, and provide updates as needed.
Questions?
Please contact your Sun Life Group Retirement Services representative.
