Sun Life Global Investments (“SLGI”) is making enhancements to our Sun Life Granite Target Date and our Sun Life Granite Target Risk series of Funds (the “Funds”). These enhancements take effect in the second quarter of 2020.
Our portfolio management team reviews the long-term strategic target allocations for the Funds once a year. This allows us to update our investment opportunity set, risk and return assumptions and constraints within the context of an evolving market environment. In this way, we seek to optimize the Funds’ risk-adjusted returns, while remaining consistent with our overall objective and philosophy.
Financial markets continue to evolve. We remain vigilant. We regularly assess risks and opportunities in our portfolio construction. In our annual review, we conduct extensive research to find ways to enhance our Granite suite of products. We do this to provide long-term value for investors.
Canadian Fixed Income
We are reallocating some of our Canadian core bond exposure into U.S. core bonds.
We are making this change to enhance yield and expected return potential, as well as overall portfolio diversification.
Global Fixed Income
We are changing our exposure to Global Fixed Income within the Fund from Templeton Global Bond Fund to the Sun Life Opportunistic Fixed Income Private Pool, sub-advised by Wellington Management Canada ULC, a subsidiary of Wellington Investment Advisors Holdings LLP (“Wellington”). We are making this change to enhance return consistency relative to the broad global bond benchmark.
We are modestly reducing our exposure to large-cap Canadian core equities from 33% to 30%. In turn, the non-Canadian equity allocations will increase: U.S. from 33% to 35%; and EAFE plus emerging markets from 33% to 35%.
We are making this change to enhance expected risk-adjusted returns and diversification.
We are changing our manager allocation within international equities as shown below:
|33% MFS International Value Fund||25% MFS International Value Equity Fund|
|33% MFS International Growth Fund||25% MFS International Growth Fund|
|33% JP Morgan International Equity Fund||50% JP Morgan International Equity Fund|