Plan sponsors may wish to consider whether this investment news has any implications for the investment options available within their plans. Sun Life Assurance Company of Canada purchases units of the funds listed below, which are established as a segregated funds under the Insurance Companies Act (Canada).

In the fourth quarter of 2023, TD Global Investment Solutions (TDGIS) announced that they made changes to the equity funds underlying the TD Greystone Target Date Plus Funds.

The following changes were effective November 1, 2023:

TDGIS introduced the following new funds to the TD Greystone Target Date Plus Funds:

  • TD U.S. Quantitative Equity
  • TD Global Equity Growth
  • TD Emerald Global Equity Shareholder Yield Pooled Fund

TDGIS periodically reviews the available fund options to determine if new funds can improve expected outcomes. TDGIS analyzes what factors drive the returns of each fund and the historical correlation of returns between these funds. TDGIS makes changes to improve diversification within the equity component and improve risk adjusted returns.

TDGIS is making a starting allocation of 5% in each new fund. Assets will be allocated from current equity funds TD Greystone Global Income and Growth Fund and TD Greystone Global Equity Fund. The TD Greystone 2065 Target Date Plus Fund currently has a 5% target to each strategy. TDGIS anticipates the strategic weight to each fund will be 5-15%, with higher allocations in vintages with higher equity weights.

GRS Investment Solutions View:

We have reviewed these changes and don’t have any concerns about them at this time. The addition of the TD U.S. Quantitative Equity Fund adds pure US Equity exposure via a quantitative approach. The addition of the two global equity funds will provide additional factor exposure to free cash flow (Value) and return on invested capital (Growth).

We will continue to monitor the funds and provide further updates as needed.

Do you have to take any action?

You and your members don’t have to take any action as a result of these changes.

Questions?

Please contact your Sun Life Group Retirement Services representative.