SunWise Essential Bundles Overview managed by CI Investments Inc. issued by Sun Life Assurance Company of Canada
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 100 0 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.
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.
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 2008. 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 2010. 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.
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
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
Fund Codes Income Class Investment Class Estate Class Fund Name ISC DSC ISC DSC ISC DSC SunWise Essential CI American Value 12739 12839 12139 12239 12439 12539 SunWise Essential CI Black Creek Global Leaders 12713 12813 12113 12213 12413 12513 SunWise Essential CI Black Creek International Equity 12746 12846 12146 12246 12446 12546 SunWise Essential CI Cambridge American Equity 12047 12097 12007 12057 12027 12077 SunWise Essential CI Cambridge Canadian Equity Low Volatility 12788 12888 12188 12288 12488 12588 SunWise Essential CI Cambridge Canadian Equity 12740 12840 12140 12240 12440 12540 SunWise Essential CI Cambridge Global Equity 12741 12841 12141 12241 12441 12541 SunWise Essential CI Cambridge Segregated Diversified Bundle 12742 12842 12142 12242 12442 12542 SunWise Essential CI Canadian Investment 12743 12843 12143 12243 12443 12543 SunWise Essential CI Global 12744 12844 12144 12244 12444 12544 SunWise Essential CI Harbour Low Volatility 12786 12886 12186 12286 12486 12586 SunWise Essential CI Harbour 12747 12847 12147 12247 12447 12547 SunWise Essential CI Harbour Segregated Diversified Bundle 12748 12848 12148 12248 12448 12548 SunWise Essential CI Signature Dividend 12751 12851 12151 12251 12451 12551 SunWise Essential CI Signature Select Canadian Low Volatility 12787 12887 12187 12287 12487 12587 SunWise Essential CI Signature Select Canadian 12750 12850 12150 12250 12450 12550 SunWise Essential CI Synergy Canadian 12753 12853 12153 12253 12453 12553 SunWise Essential CI Synergy Global 12754 12854 12154 12254 12454 12554 SunWise Essential Dynamic Canadian Value 12755 12855 12155 12255 12455 12555 SunWise Essential Dynamic Global Value 12756 12856 12156 12256 12456 12556 SunWise Essential Fidelity American Disciplined Equity 12757 12857 12157 12257 12457 12557 SunWise Essential Fidelity Disciplined 12758 12858 12158 12258 12458 12558 SunWise Essential Fidelity NorthStar 12759 12859 12159 12259 12459 12559 SunWise Essential Fidelity True North 12760 12860 12160 12260 12460 12560 SunWise Essential RBC Canadian Dividend 12761 12861 12161 12261 12461 12561 SunWise Essential Sun Life MFS Global Growth 12044 12094 12004 12054 12024 12074 SunWise Essential Sun Life MFS Global Value 12795 12895 12195 12295 12495 12595 SunWise Essential Sun Life MFS International Growth 12045 12095 12005 12055 12025 12075 SunWise Essential Sun Life MFS International Value 12794 12894 12194 12294 12494 12594 SunWise Essential Sun Life MFS U.S. Growth 12043 12093 12003 12053 12023 12073 SunWise Essential Sun Life MFS U.S. Value 12793 12893 12193 12293 12493 12593
For more information about the innovative features and benefits of SunWise Essential Series, please visit www.sunwiseessentialseries.com. 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 www.ci.com Head Office / Toronto 416-364-1145 1-800-268-9374 Calgary 403-205-4396 1-800-776-9027 Montreal 514-875-0090 1-800-268-1602 Vancouver 604-681-3346 1-800-665-6994 Client Services English: 1-800-563-5181 French: 1-800-668-3528 1109-1310_E (12/11)