SunWise Essential Bundles Overview

Transcription

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

2 SunWise Essential Bundles 4. Providing a balanced investment involving specific funds, with the convenience of automatic rebalancing. 5. Providing access to more than one portfolio manager within the same investment. How SunWise Essential Segregated Bundles work SunWise Essential Segregated Bundles offer maximum equity exposure, diversification, choice and tax efficiency SunWise Essential Segregated Bundles are a combination of an equity fund with a conservative bond fund, with a target allocation of 70% equity and 30% fixed income. These are the most widely held type of Bundle. Segregated Bundles are automatically rebalanced monthly back to their target asset allocation, ensuring that you maximize the growth potential of your investment. SunWise Essential Segregated Bundles may benefit you by: The allocations for SunWise Essential Segregated Bundles are determined according to the securities within the portfolios of the underlying funds. This is important because equity funds typically hold some cash in their portfolios. In making the fund allocation, we consider cash or fixed-income securities held within the equity fund to be part of the Bundle s income allocation, and reduce the exposure to the income fund accordingly. Unlike other managed solutions that rebalance at the fund level, there is no duplication of fixed-income and the exposure to equities is maintained at its maximum level. Here are simplified examples of how it works: 1. Providing exposure to funds not offered as stand-alone funds in certain classes. 2. Maximizing your equity exposure and its potential growth, increasing the possibility of a reset, where offered. 1 If the Equity Fund is: Equity Fund 100% Equities the Bundle is: To provide 70% equity exposure SunWise Essential Bundle 30% Income Fund Fund t 70% Equity Fund 3. Providing tax efficiency, as Bundles that use CI Corporate Class funds can rebalance without tax consequences in non-registered accounts. 2 If the Equity Fund is: 30% Cash 70% Equities the Bundle is: To provide 70% equity exposure 100% EquityFund Fund t

3 SunWise Essential Bundles and CI Corporate Class SunWise Essential Bundles that have CI Corporate Class funds as their underlying investment and are held in a non-registered account can benefit from rebalancing between the underlying funds without tax consequences. (CI Corporate Class funds are structured as a corporation, which permits switches among CI Corporate Class funds without triggering a taxable disposition.) SunWise Essential Bundles that use mutual fund trusts as their underlying investment may trigger taxable capital gains when they are rebalanced, when held in a non-registered account. These capital gains need to be declared in the year they occur and may result in a tax liability, even though the Bundle was not redeemed. SunWise Essential Bundles that use CI Corporate Class funds as their underlying investment can be a tax-efficient alternative to holding other SunWise Essential Series 2 funds that are rebalanced in the account. The tax efficiency of CI Corporate Class funds provides policyholders with the potential to minimize taxable allocations. Additional Features of SunWise Essential Bundles y SunWise Essential Bundles are based on funds that provide diversification by asset class, geographic region and economic sector. They are available in all SunWise Essential Series 2 Classes Income, Investment and Estate. y SunWise Essential Bundles match quality equity and balanced funds with fixed-income funds from established managers with proven track records. Other SunWise Essential Bundles Segregated Diversified Bundles Segregated Diversified Bundles are a combination of an equity fund and a diversified income fund, which invests in income-producing equities such as REITs and income trusts, as well as bonds. Segregated Diversified Bundles are rebalanced in the same manner as Segregated Bundles. Segregated Diversified Bundles are suitable for anyone seeking higher-yielding income from alternative sources combined with an equity fund. Segregated Diversified Bundles have a 70% equity and 30% fixedincome asset allocation and a target fund allocation of 50% equity and 50% high-yielding income. Segregated Balanced Bundles Segregated Balanced Bundles are a combination of a balanced fund with a fixed-income fund. They are suitable for anyone who wants the benefits of a diversified fund that provides stable returns with lower than average volatility. Since the focus is on stable returns and lower volatility, there is no need to maximize equity exposure. For this reason, the rebalancing for Segregated Balanced Bundles is performed at the fund level. Segregated Balanced Bundles have a fund level target allocation of 85% balanced fund and 15% fixedincome fund.

4 Portfolio Managers Black Creek Investment Management Inc. is led by award-winning money managers Bill Kanko and Richard Jenkins. Black Creek pursues an equity mandate with no restrictions on finding the best businesses in the world. They are driven by identifying proprietary ideas and global businesses that will do well for investors over the long term. Cambridge Global Asset Management is led by Co-Chief Investment Officers Alan Radlo and Brandon Snow and Chief Market Strategist Robert Swanson. They invest in companies building long-term economic value. Cambridge is a division of CI Investments and has offices in Boston and Toronto. Epoch Investment Partners, Inc. is a New York-based investment management firm founded by Wall Street veteran William Priest and associates. Epoch uses a value-based approach that focuses on companies with superior shareholder yield. 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. Fidelity s True North Fund aims to deliver superior long-term growth potential through its freedom to pursue opportunities throughout the Canadian market. Harbour Advisors, a division of CI Investments, is led by Portfolio Managers Stephen Jenkins and Roger Mortimer. Harbour s approach entails buying high-quality businesses at a sensible price, and following a patient, long-term outlook. Signature Global Asset Management, CI Investments largest in-house portfolio management group, is led by Chief Investment Officer Eric Bushell. Signature has won numerous Morningstar Awards for its funds and Mr. Bushell was named Morningstar Equity Fund Manager of the Year in 2009 and Morningstar Fund Manager of the Decade in Sun Life Global Investments (Canada) Inc. is a Canadian investment management firm wholly owned (indirectly) by Sun Life Financial Inc. With a focus on risk management, Sun Life Global Investments rigorous selection and monitoring process provides access to leading asset managers from around the world who use insight and innovation to manage high-quality investment solutions for Canadian investors. Each asset manager has a unique, disciplined, research-based approach to managing their funds, with a view to attaining long-term performance results. They have a worldwide reach and a long and proven history of success. Tetrem Capital Management, led by Chief Investment Officer Daniel Bubis, is based in Winnipeg and has an office in Boston. Tetrem uses a disciplined approach to invest in undervalued Canadian and U.S. companies. Altrinsic Global Advisors, LLC follows a fundamental value approach in which the team seeks out high-quality undervalued companies worldwide. Founded by John Hock and associates, Altrinsic is based in Greenwich, Connecticut. Picton Mahoney Asset Management is led by David Picton and Michael Mahoney and uses quantitative analysis as the foundation of its approach.

5 SunWise Essential Bundles Fund Name Current Underlying Funds Segregated Bundles SunWise Essential 2 CI American Value Segregated Bundle SunWise Essential 2 CI Black Creek Global Leaders Segregated Bundle SunWise Essential 2 CI Cambridge American Equity Segregated Bundle SunWise Essential 2 CI Cambridge Canadian Equity Segregated Bundle SunWise Essential 2 CI Cambridge Global Equity Segregated Bundle SunWise Essential 2 CI Canadian Investment Segregated Bundle SunWise Essential 2 CI Harbour Segregated Bundle SunWise Essential 2 CI Signature Dividend Segregated Bundle SunWise Essential 2 CI Signature Select Canadian Segregated Bundle CI American Value Corporate Class Black Creek Global Leaders Corporate Class Cambridge American Equity Corporate Class Signature Canadian Bond Corporate Class Cambridge Canadian Equity Corporate Class Cambridge Global Equity Corporate Class Cambridge Canadian Equity Corporate Class Signature Canadian Bond Corporate Class CI Canadian Investment Corporate Class Harbour Corporate Class Signature Dividend Corporate Class Select Income Managed Corporate Class Signature Select Canadian Corporate Class

6 Fund Name Current Underlying Funds Segregated Diversified Bundles SunWise Essential 2 CI Cambridge Segregated Diversified Bundle SunWise Essential 2 CI Harbour Segregated Diversified Bundle Cambridge Canadian Equity Corporate Class Signature High Income Corporate Class Harbour Corporate Class Signature High Income Corporate Class Segregated Balanced Bundles SunWise Essential 2 CI Cambridge Canadian Asset Allocation Segregated Balanced Bundle SunWise Essential 2 CI Harbour Growth & Income Segregated Balanced Bundle Cambridge Canadian Asset Allocation Corporate Class Signature Canadian Bond Corporate Class Harbour Growth & Income Corporate Class Select Income Managed Corporate Class Third Party Bundles SunWise Essential 2 Fidelity NorthStar Segregated Bundle SunWise Essential 2 Fidelity True North Segregated Bundle Fidelity NorthStar Fund Fidelity Canadian Bond Fund Fidelity True North Fund Fidelity Canadian Bond Fund Sun Life Global Investment Bundles SunWise Essential 2 Sun Life BlackRock Canadian Equity Segregated Bundle SunWise Essential 2 Sun Life MFS Global Growth Segregated Bundle SunWise Essential 2 Sun Life MFS Global Value Segregated Bundle SunWise Essential 2 Sun Life MFS U.S. Growth Segregated Bundle SunWise Essential 2 Sun Life MFS U.S. Value Segregated Bundle Sun Life BlackRock Canadian Equity Fund Sun Life MFS Global Growth Fund Sun Life MFS Global Value Fund Sun Life 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 2 CI American Value Segregated Bundle SunWise Essential 2 CI Black Creek Global Leaders Segregated Bundle SunWise Essential 2 CI Cambridge American Equity Segregated Bundle SunWise Essential 2 CI Cambridge Canadian Asset Allocation Segregated Balanced Bundle SunWise Essential 2 CI Cambridge Canadian Equity Segregated Bundle SunWise Essential 2 CI Cambridge Global Equity Segregated Bundle SunWise Essential 2 CI Cambridge Segregated Diversified Bundle SunWise Essential 2 CI Canadian Investment Segregated Bundle SunWise Essential 2 CI Harbour Growth & Income Segregated Balanced Bundle SunWise Essential 2 CI Harbour Segregated Bundle SunWise Essential 2 CI Harbour Segregated Diversified Bundle SunWise Essential 2 CI Signature Dividend Segregated Bundle SunWise Essential 2 CI Signature Select Canadian Segregated Bundle SunWise Essential 2 Fidelity NorthStar Segregated Bundle SunWise Essential 2 Fidelity True North Segregated Bundle SunWise Essential 2 Sun Life BlackRock Canadian Equity Segregated Bundle SunWise Essential 2 Sun Life MFS Global Growth Segregated Bundle SunWise Essential 2 Sun Life MFS Global Value Segregated Bundle SunWise Essential 2 Sun Life MFS U.S. Growth Segregated Bundle SunWise Essential 2 Sun Life MFS U.S. Value Segregated Bundle * Income Class is only available to Sun Life Financial Advisors.

8 For more information about the features and benefits of SunWise Essential Series 2, 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 2 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, Harbour Advisors, Harbour Funds and Cambridge are registered trademarks of CI Investments Inc. Signature Funds and Signature Global Asset Management are trademarks of CI Investments Inc. Cambridge Global Asset Management is a business name of CI Investments Inc. used in connection with its subsidiary, CI Global Investments Inc. Certain portfolio managers of Cambridge Global Asset Management are registered with CI Investments Inc. SunWise is a registered trademark of Sun Life Assurance Company of Canada. 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 (10/14)