JFL Portfolio Management Team Update
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. They are established as segregated funds under the Insurance Companies Act (Canada).
In the fourth quarter of 2024, Jarislowsky, Fraser Limited (JFL) announced the upcoming retirements of Chris Kresic, Head of Fixed Income, and Asset Allocation, and Marc Novakoff, Portfolio Manager, Emerging Markets Equities. Both senior investment leaders contribute to the Jarislowsky Fraser Balanced and Jarislowsky Fraser Global Balanced Funds (the “Balanced funds”).
Both Kresic and Novakoff are expected to retire on March 31, 2025. Until retirement, they will continue in their roles and work with their respective teams on transition plans.
Starting April 2025, Antoine Potter, Portfolio Manager will assume leadership of the Fixed Income team. Potter has 23 years of industry experience and has been involved in the management of Jarislowsky Fraser’s fixed income portfolios since he joined the firm in 2016 as Associate PM. In 2020, he was promoted to Portfolio Manager, where he works with Chris Kresic to manage bond portfolios. Together, Potter and Kresic have been responsible for crucial aspects of portfolio management, including sizing, execution of trades, risk assessment, and team leadership.
Following Novakoff’s retirement, Christopher Knapp, Portfolio Manager, Emerging Market Equities, will lead Emerging Markets. Knapp has 17 years of industry experience and has been with JFL since 2015. He has covered the Emerging Markets equities strategy since its inception. He was promoted to Associate PM in 2022 and PM in early 2024. Currently, Knapp and Novakoff share responsibility for portfolio sizing and implementing buy/ sell decisions, assessing overall risk, and leading team meetings.
In April 2025, Potter and Knapp will also join the Investment Strategy Council (ISC), taking over the roles previously held by Novakoff and Kresic. The ISC is composed of specialists who focus on specific asset classes. ISC responsibilities include vetting new security buys, evaluating portfolio composition and risk exposure, and assessing the asset allocation in balanced portfolios.
Sun Life GRS Investment Solutions’ view
The retirements of Kresic and Novakoff are losses to JF and follow the retirement of Canadian Equity PM Bernard Gauthier in May 2024. Kresic’s departure is a more significant event given the much higher allocation of the bond strategy (target exposure 37.5% - 38.5%) to the Balanced funds in comparison to Emerging Markets Equities (target exposure 2.5%). In total, PM changes at JF announced over the past year have impacted 70% of JF Balanced and 63% of JF Global Balanced. Our concerns about this amount of change is partially mitigated by the fact that they have all been retirements planned for in advance.
We have no concerns with Potter's appointment as Head of Fixed Income, given his collaborative experience with Kresic in portfolio management. Potter's promotion to the PM role in 2020 helps ensure he is well prepared for the transition.
Knapp brings extensive experience in EM equities to his new role, both from his prior work experience and since joining JFL. Knapp’s leadership and portfolio manager experience is less established. Knapp's PM experience spans two years, including time as an associate PM.
The JF Balanced funds continue to be on the GRS Investment Solutions Watch List on Additional Monitoring (least severe category). They were added to the Watch List in Q1 2024 due to Gauthier’s retirement. We plan to meet with Potter and Knapp in 2025 to assess the transition. We’ll provide further updates as neede.
Questions?
Please contact your Sun Life Group Retirement Services representative.