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 fund listed below. The Insurance Companies Act (Canada) establishes this fund as a segregated fund.
The following update is relevant for the Fidelity Canadian Asset Allocation Fund (the Fund) on our core investment platform.
Fidelity Investments Inc. (Fidelity) provided an update on planned transitions within their fixed income group. Fidelity announced that Catriona Martin will succeed Jamie Pagliocco as Co-Chief Investment Officer (CIO), Bonds, working alongside Robin Foley. Effective October 1, 2020, Fidelity promoted Jamie Pagliocco to Head of Fixed Income. At this time, Martin gave up her portfolio management duties on the Fund. Lee Ormiston received a promotion to Co-Portfolio Manager. Ormiston will manage the Canadian fixed income strategies alongside Lead Portfolio Manager, Sri Tella.
The co-CIO structure involves each CIO having oversight of specific bond strategies. Martin will oversee the Canadian, Core/Core Plus, Global, and Municipal teams. Foley will continue to oversee the Credit/LDI, Government/Mortgage, Limited Term Bond, Index Strategies and SMA teams.
Our View
Sun Life’s GRS Investment Solutions team met with Fidelity to discuss these changes. While Martin’s departure from the Fidelity Canadian Asset Allocation Fund is a loss of experience, Tella’s tenure on the strategy will give continuity. Tella has worked alongside Martin since 2008, initially as a bond trader and later as part of the portfolio management team after Brian Miron’s retirement in 2015.
We have placed the Fidelity Canadian Asset Allocation Fund on our Watch List (Additional Monitoring). However, we do not have any major concerns at this time. We do not expect any changes to the Fund’s investment strategy. We will provide further updates as necessary.
Questions?
Please contact your Sun Life Group Retirement Services representative.
