SunWise Essential CI Harbour Bundles managed by CI Investments Inc. issued by Sun Life Assurance Company of Canada
s Here s how they work All equity funds hold a certain amount of cash. With s, 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 Fund is: Fund 100% the Bundle 3Equities is: 0% Income Fund Fund t 70% Fund To provide 70% equity exposure Example #2 Fund If the Fund is: 30% Cash 70% Equities the Bundle is: 100% % Fund 100 0 Fund t To provide 70% equity exposure Example #3 Fund SunWise Essential Low Volatility Bundle If the Fund is: 100% Equities the Bundle is: 45% Income Fund Fund t 55% Fund To provide 55% equity exposure The fund allocation of the Bundle mix is determined by the underlying security allocation of the equity fund(s).
s maximize your equity exposure s 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. s are: y based on the tax efficiency of CI Corporate Class funds, which allow for rebalancing between the underlying 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 y based on funds which provide diversification by asset class, geographic region and economic sector y available with all SunWise Essential Series Classes Income, Investment and Estate. Here s how they perform 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, the Bundle outperformed a combined portfolio of underlying funds by nearly 6% over nine years. SunWise Essential Low Volatility Bundle The equity exposure in a Low Volatility Bundle is constantly maximized at 55% by rebalancing monthly. In this example, 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 is 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 $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 Underlying funds with 70/30 asset mix $210,000 $190,000 $170,000 $170,169 $150,000 $130,000 $166,350 $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 Low Volatility Bundle Underlying funds with 55/45 asset mix Source: CI Investment Consulting These illustrations are based on comparisons between SunWise Essential CI Harbour Segregated Bundle and SunWise Essential CI Harbour Low Volatility Segregated Bundle and independent investments of 70% Harbour Fund and 30% Signature Corporate Bond Fund for the first example and 55% Harbour Fund and 45% Signature Corporate Bond Fund for the second example. Historical data are estimated, based on a cash allocation in Harbour Fund of approximately 20%. No rebalancing was performed; actual monthly data may vary.
SunWise Essential CI Harbour Bundles Segregated Bundles Segregated Bundles are a combination of an equity fund with a conservative bond fund. Segregated Bundles are suitable for anyone who wants the stability of a pure bond fund combined with the growth potential of an equity fund. SunWise Essential CI Harbour Segregated Bundle provides long-term capital growth and income with low to moderate volatility by obtaining exposure primarily to equity, equity-related and fixed-income securities of issuers located anywhere in the world. Segregated Diversified Bundles The Bundle has a target allocation of 70% to Harbour Corporate Class and 30% to Signature Corporate Bond Corporate Class. 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. SunWise Essential CI Harbour Segregated Diversified Bundle generates capital growth appreciation and income over the long term by obtaining diversified exposure primarily to equity, equity-related and fixed-income securities of issuers located anywhere in the world. Low Volatility Bundles The Bundle has a 70% equity/30% income asset allocation and a target fund allocation of 50% to Harbour Corporate Class and 50% to Signature High Income Corporate Class. 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. SunWise Essential CI Harbour Low Volatility Segregated Bundle provides long-term capital growth and income with lower than average volatility by obtaining exposure primarily to equity, equity related and fixed-income securities of issuers located anywhere in the world. The Bundle has a target allocation of 50% to Harbour Corporate Class and 50% to Select Income Advantage Managed Corporate Class. Co-managed by Harbour Advisors and Signature Global Advisors. 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.
Fund Codes Income Class Investment Class Estate Class Fund Name ISC DSC ISC DSC ISC DSC SunWise Essential CI Harbour Segregated Bundle 12747 12847 12147 12247 12447 12547 SunWise Essential CI Harbour Segregated Diversified Bundle 12748 12848 12148 12248 12448 12548 SunWise Essential CI Harbour Low Volatility Segregated Bundle 12786 12886 12186 12286 12486 12586 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, and Signature Global Advisors are registered trademarks of CI Investments Inc. Signature Funds is a trademark of 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 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 1101-0148 (03-11 )-E