Canadian commercial mortgages: a diversified income component in Sun Life Granite Index+ Target Date Funds

Stable income backed by real property

Canadian commercial mortgages are investments in loans secured by income‑producing properties, such as office, retail, industrial, or multi‑family buildings and represent a valuable diversification component in portfolios. As mortgage obligations secured by income-producing commercial real estate, these investments can help deliver predictable cash flows/income within a diversified portfolio.

Resilient returns in uncertain markets

Commercial mortgages have historically demonstrated stability during periods of equity market volatility, providing a cushion when public markets face headwinds. The income generated from mortgage servicing remains consistent regardless of stock market conditions, making them an ideal complement within a diversified retirement portfolio.

The allocation to commercial mortgages within Granite Index+ delivers three key advantages:

• Stable income generation from predictable mortgage payments backed by real property
• Reduced market volatility through assets uncorrelated to equity markets
• Downside protection during market turbulence from the security of underlying commercial real estate collateral

Why Canadian commercial mortgages belong in Granite Index+

For plan members navigating the road to retirement, stability and income become increasingly important. Canadian commercial mortgages can play a supportive role by providing steady cash flows from professionally managed real estate loans. When combined with traditional public market investments, Granite Index+ includes a measured allocation to commercial mortgages to help support income potential and diversification.