SunWise Essential Bundles Overview

Transcription

1 SunWise Essential Bundles Overview managed by CI Investments Inc. issued by Sun Life Assurance Company of Canada

2 t SunWise Essential Bundles SunWise Essential Bundles maximize your equity exposure SunWise Essential Bundles are based on a portfolio strategy that combines one or two equity funds with an income fund to maximize the growth potential of your investment in SunWise Essential Series. Every month, the Bundles are rebalanced to provide the maximum 70% equity exposure permitted for Income Class and Estate Class or 55% equity exposure for the Low Volatility Bundles. Unlike other managed solutions, where asset allocation is performed at the fund level, we rebalance based on the securities in each underlying fund. Here s how they work All equity funds hold a certain amount of cash. With SunWise Essential Bundles, we consider the cash in the equity fund to be part of the fixed-income weighting. That means that there is no duplication of income assets and no cash drag on the Bundle. Here are three examples: Example #1 If the Equity Fund is: Equity Fund 100% Example #2 If the Equity Fund is: Equity Fund Example #3 If the Equity Fund is: 30% Cash 70% Equities Equity Fund 100% Equities the Bundle 3Equities is: the Bundle is: the Bundle is: SunWise Essential Bundle 0% Income Fund 70% Equity Fund To provide 70% equity exposure The fund allocation of the Bundle mix is determined by the underlying security allocation of the equity fund(s). Fund t SunWise Essential Bundle 100% % EquityFund Fund t To provide 70% equity exposure SunWise Essential Low Volatility Bundle 45% Income Fund Fund Equity 55% Equity Fund To provide 55% equity exposure Here s how they perform SunWise Essential Bundle If the Bundles had existed over the past nine years, they would have outperformed the underlying funds because the equity exposure is constantly maximized at 70% by rebalancing monthly. In this example, we created a hypothetical Bundle which is based on the underlying mutual funds and rebalanced monthly. It outperformed a combined portfolio of underlying funds by nearly 6% over nine years. $210,000 $195,932 $190,000 $170,000 $150,000 $130,000 $185,182 $110,000 $90,000 $70,000 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 SunWise Essential Bundle (hypothetical) Underlying funds with 70/30 asset mix SunWise Essential Low Volatility Bundle In this example, we created a hypothetical Low Volatility Bundle which is based on the underlying mutual funds and rebalanced monthly. The equity exposure is constantly maximized at 55% by rebalancing monthly. Lower equity exposure means that growth for the Low Volatility Bundle is more moderate than the 70/30 Bundle over a nine-year period. However, in 2008 during the financial crisis, the loss for the Low Volatility Bundle was about half that of the 70/30 Bundle (a loss of $34,585 vs. $66,788). Low Volatility Bundles help to mitigate fluctuations in the market value of a portfolio. $210,000 $190,000 $170,169 $170,000 $150,000 $130,000 $110,000 $166,350 $90,000 $70,000 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 SunWise Essential Low Volitility Bundle (hypothetical) Underlying funds with 55/45 asset mix Source: CI Investment Consulting These illustrations are based on comparisons between the hypothetical SunWise Essential CI Harbour and the hypothetical SunWise Essential CI Harbour Low Volatility Segregated Bundle and independent investments of 70% Harbour Fund and 30% for the first example and 55% Harbour Fund and 45% for the second example. Historical data are estimated, based on a cash allocation in Harbour Fund of approximately 20%. No rebalancing was performed; there are no insurance fees charged; and actual monthly data may vary.

3 Key Features: y SunWise Essential Bundles are based on funds which provide diversification by asset class, geographic region and economic sector. They are available with all SunWise Essential Series Classes Income, Investment and Estate. y In addition, SunWise Essential CI Bundles incorporate the benefits of CI Corporate Class funds, which allow for switches among funds without tax consequences, the receipt of tax-efficient capital gains or Canadian dividends from traditional income funds, and deferral of tax on distributions, given the low dividend payout of the funds. SunWise Essential Bundles s s are a combination of an equity fund with a conservative bond fund. s are suitable for anyone who wants the stability of a pure bond fund combined with the growth potential of an equity fund. The Bundle has a target allocation of 70% equity and 30% conservative bonds. Segregated Diversified Bundles Segregated Diversified Bundles are a combination of an equity fund with a diversified income fund that invests in income-producing equities such as REITs and income trusts, as well as bonds. Segregated Diversified Bundles are suitable for anyone looking for higher-yielding income from alternative sources combined with an equity fund. The Bundle has a 70% equity/30% income asset allocation and a target fund allocation of 50% equity and 50% high-yielding income. Low Volatility Bundles Low Volatility Bundles are a combination of an equity fund with a conservative income fund. Low Volatility Bundles are suitable for anyone who wants to achieve capital preservation with the potential for some growth, while being exposed to lower than average volatility. The Bundle has a target allocation of 55% equity and 45% to income.

4 Portfolio Managers Harbour Advisors is led by Chief Investment Officer Gerry Coleman, who has managed money for institutional and mutual fund investors for over 40 years. His reputation as one of Canada s premier fund managers was acknowledged by the Canadian Investment Awards by his selection as Fund Manager of the Year in 2001 and Signature Global Advisors, CI Investments largest in-house portfolio management group, is led by Chief Investment Officer Eric Bushell. Signature has won numerous Canadian Investment Awards for its funds and Mr. Bushell was named Morningstar Fund Manager of the Year in 2009 and Morningstar Fund Manager of the Decade in Cambridge Advisors is lead by Chief Investment Officer Alan Radlo, who has more than 25 years of experience in the investment industry. He has a successful track record of consistently rewarding investors with strong long-term performance. Black Creek Investment Management is led by Bill Kanko and Richard Jenkins. Over the years they have proven that quality active management adds value to a portfolio. They believe that their ability to develop proprietary investment ideas will grow wealth for their clients. Their goal is to provide capital growth over the long term through investment in common equities, and to achieve superior returns relative to equity market averages in general and to competitors. Sun Life Global Investments (Canada) Inc. is a Canadian investment management firm wholly owned (indirectly) by Sun Life Financial Inc. MFS Investment Management is a sub-advisor for Sun Life Global Investments (Canada) Inc. Sun Life Financial Inc. is a global international financial services organization providing a diverse range of protection and wealth accumulation products and services, as well as investment products to individuals and institutions. Dynamic Funds is a division of Goodman & Company, Investment Counsel Ltd., a subsidiary of DundeeWealth Inc. Goodman & Company offers a wide range of wealth management solutions through financial advisors. These include the mutual funds and hedge funds of Dynamic Funds, the portfolio solutions of the Marquis Investment Program, and the high-net worth investment counsel of Dundee Wealth Invesment Counsel. DundeeWealth Inc. is a wholly owned subsidiary of The Bank of Nova Scotia and part of the Bank s Global Wealth Management business line, with $81.9 billion in fee earning assets. Synergy funds are managed by Picton Mahoney Asset Management, a portfolio management team led by David Picton and Michael Mahoney. Both have built their investment careers using quantitative analysis as the foundation for their success. Picton Mahoney maintains a disciplined focus on fundamental change, coupled with strong risk controls and portfolio construction techniques. RBC Global Asset Management Inc. is an indirect, wholly owned subsidiary of Royal Bank of Canada. It provides a broad range of investment services to investors through mutual funds from its two fund families, RBC Funds and PH&N Funds, pooled funds and separately managed portfolios. Fidelity s Disciplined equity approach neutralizes sector risk relative to the benchmark and instead focuses on fundamental, bottom-up research as the primary source of excess return. Fidelity s NorthStar Fund has an open mandate to seek the best ideas, wherever they may lie. Fidelty s True North Fund aims to deliver superior long-term growth potential through its freedom to pursue opportunities throughout the Canadian market.

5 SunWise Essential Bundles Fund Name Current Underlying Funds s SunWise Essential CI American Value SunWise Essential CI Black Creek International Equity SunWise Essential CI Black Creek Global Leaders SunWise Essential CI Cambridge American Equity SunWise Essential CI Cambridge Canadian Equity SunWise Essential CI Cambridge Global Equity SunWise Essential CI Canadian Investment SunWise Essential CI Global SunWise Essential CI Harbour SunWise Essential CI Signature Select Canadian SunWise Essential CI Signature Dividend SunWise Essential CI Synergy Canadian SunWise Essential CI Synergy Global CI American Value Corporate Class SunWise Essential CI Black Creek International Equity Corporate Class SunWise Essential CI Black Creek Global Leaders Corporate Class Cambridge American Equity Corporate Class Cambridge Canadian Equity Corporate Class Cambridge Global Equity Corporate Class CI Canadian Investment Corporate Class CI Global Corporate Class Harbour Corporate Class Signature Select Canadian Corporate Class Signature Dividend Corporate Class Synergy Canadian Corporate Class Synergy Global Corporate Class

6 Fund Name Current Underlying Funds Segregated Diversified Bundles SunWise Essential CI Cambridge Segregated Diversified Bundle SunWise Essential CI Harbour Segregated Diversified Bundle Cambridge Canadian Equity Corporate Class Signature High Income Corporate Class Harbour Corporate Class Signature High Income Corporate Class Low Volatility Bundles SunWise Essential CI Cambridge Canadian Equity Low Volatility SunWise Essential CI Harbour Low Volatility SunWise Essential CI Signature Select Canadian Low Volatility Harbour Corporate Class Select Income Advantage Managed Corporate Class Signature Select Canadian Corporate Class Select Income Advantage Managed Corporate class Cambridge Canadian Equity Corporate Class Select Income Advantage Managed Corporate Class Third Party Bundles SunWise Essential Dynamic Canadian Value SunWise Essential Dynamic Global Value SunWise Essential Fidelity American Disciplined Equity SunWise Essential Fidelity Disciplined SunWise Essential Fidelity NorthStar SunWise Essential Fidelity True North SunWise Essential RBC Canadian Dividend Dynamic Canadian Value Class Dynamic Global Dividend Value Class Dynamic Canadian Bond Fund Dynamic Global Value Fund Dynamic Global Dividend Value Class Dynamic Canadian Bond Fund Fidelity American Disciplined Equity Fund Fidelity Canadian Bond Fund Fidelity Canadian Disciplined Equity Fund Fidelity Canadian Bond Fund Fidelity Global Disciplined Equity Fund Fidelity NorthStar Fund Fidelity Canadian Bond Fund Fidelity True North Fund Fidelity Canadian Bond Fund RBC Canadian Dividend Fund Phillips, Hager & North Bond Fund Sun Life Global Investment Bundles SunWise Essential Sun Life MFS Global Growth SunWise Essential Sun Life MFS Global Value SunWise Essential Sun Life MFS International Growth SunWise Essential Sun Life MFS International Value SunWise Essential Sun Life MFS U.S. Growth SunWise Essential Sun Life MFS U.S. Value MFS Global Growth Fund MFS Global Value Fund MFS International Growth Fund MFS International Value Fund MFS U.S. Growth Fund Sun Life MFS U.S. Value Fund

7 Fund Codes Income Class Investment Class Estate Class Fund Name ISC DSC ISC DSC ISC DSC SunWise Essential CI American Value SunWise Essential CI Black Creek Global Leaders SunWise Essential CI Black Creek International Equity SunWise Essential CI Cambridge American Equity SunWise Essential CI Cambridge Canadian Equity Low Volatility SunWise Essential CI Cambridge Canadian Equity SunWise Essential CI Cambridge Global Equity SunWise Essential CI Cambridge Segregated Diversified Bundle SunWise Essential CI Canadian Investment SunWise Essential CI Global SunWise Essential CI Harbour Low Volatility SunWise Essential CI Harbour SunWise Essential CI Harbour Segregated Diversified Bundle SunWise Essential CI Signature Dividend SunWise Essential CI Signature Select Canadian Low Volatility SunWise Essential CI Signature Select Canadian SunWise Essential CI Synergy Canadian SunWise Essential CI Synergy Global SunWise Essential Dynamic Canadian Value SunWise Essential Dynamic Global Value SunWise Essential Fidelity American Disciplined Equity SunWise Essential Fidelity Disciplined SunWise Essential Fidelity NorthStar SunWise Essential Fidelity True North SunWise Essential RBC Canadian Dividend SunWise Essential Sun Life MFS Global Growth SunWise Essential Sun Life MFS Global Value SunWise Essential Sun Life MFS International Growth SunWise Essential Sun Life MFS International Value SunWise Essential Sun Life MFS U.S. Growth SunWise Essential Sun Life MFS U.S. Value

8 For more information about the innovative features and benefits of SunWise Essential Series, please visit Sun Life Assurance Company of Canada, a member of the Sun Life Financial group of companies, is the sole issuer of the individual variable annuity contract providing for investment in SunWise Essential Series segregated funds. A description of the key features of the applicable individual variable annuity contract is contained in the Information Folder. Any amount that is allocated to a segregated fund is invested at the risk of the contract holder and may increase or decrease in value. CI Investments, the CI Investments design, Synergy Mutual Funds, Harbour Advisors, Harbour Funds, Cambridge Advisors and Signature Global Advisors are registered trademarks of CI Investments Inc. Portfolio Series and Signature Funds are trademarks of CI Investments Inc. SunWise is a registered trademark of Sun Life Assurance Company of Canada. Sun Life Global Investments (Canada) Inc. is part of the Sun Life Financial Group of companies. Fidelity Investments and the Fidelity design are registered trademarks of Fidelity Management & Research Co. Registered trademark of Royal Bank of Canada. RBC Global Asset Management is a registered trademark of Royal Bank of Canada. Used under license. TD Asset Management is a trademark of The Toronto-Dominion Bank, used under licence. Franklin Templeton Investments Quotential Program and Franklin Templeton Investments and design are registered trademarks of Franklin Templeton Investments Corp. Dynamic Funds is a registered trademark of The Bank of Nova Scotia and division of Goodman & Company, Investment Counsel Ltd ( GCICL ). GCICL does not warrant or make any representations regarding the use or the results of the information contained herein in terms of its correctness, accuracy, timeliness, reliability, or otherwise. Sun Life Assurance Company of Canada 227 King Street South P.O. Box 1601 STN Waterloo Waterloo, Ontario N2J 4C5 2 Queen Street East, Twentieth Floor, Toronto, Ontario M5C 3G7 I Head Office / Toronto Calgary Montreal Vancouver Client Services English: French: _E (12/11)