Personnel changes impacting PH&N U.S. Equity and PH&N Canadian Equity Value
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 segregated funds in accordance with the Insurance Companies Act (Canada).
PH&N recently announced changes affecting the portfolio management teams responsible for the PH&N U.S. Equity fund and PH&N Canadian Equity Value fund. The funds are managed by members of the RBC Global Asset Management (RBC GAM) North American Equities team.
Effective January 1, 2025, Stu Kedwell and Doug Raymond, both co-Heads North American Equities, have relinquished their respective Portfolio Manager roles on the PH&N U.S. Equity fund. Kedwell has also relinquished his role as Co-Head of North American Equities and assumed the newly created role of Global Head of Equities, with expanded responsibilities and teams reporting into him. Raymond will also be stepping down as co-Head of North American Equities to focus his efforts and time on portfolio management for various other strategies. Kedwell and Raymond will continue to manage the North American Value fund and contribute to research on North American stocks. Kedwell and Raymond have a combined 65 years of investment experience.
Prior to these changes, Kedwell and Raymond managed PH&N U.S. Equity alongside David Tron. Tron will continue his role as a co-lead PM on the strategy and, as of January 1, 2025, is joined by Shanthu David as a co-lead PM. Tron joined the PH&N U.S. Equity fund as a co-lead PM in November 2019. Tron joined the firm in 2012 and has over 16 years of industry experience. David has over 27 years of industry experience and joined the firm in 2012. David has been a PM since 2019 and is one of the lead PMs on four other Canadian and U.S. Equity funds. The other funds managed by David are not on the core platform.
Other changes within the North American Equity Team:
Irene Fernando and Sarah Neilson have been promoted to co-Heads of North American Equities. These promotions are a result of the changes in roles with respect to Kedwell and Raymond. Fernando joined the firm in 2007, has over 20 years of industry experience and has been a Senior PM since 2022. Neilson joined the firm in 2004, has over 20 years of industry experience and has been a Senior PM since 2022.
Fernando and Neilson will continue to manage the PH&N Canadian Equity Value strategy, while taking on additional responsibilities stemming from their new roles. Fernando and Neilson estimate that 80% to 90% of their time spent will continue to be spent on PM responsibilities. They noted that they have freed up time by relinquished PM responsibilities on a monthly income strategy. They also stated that they intend to hire additional analysts within the North American Equities team.
GRS Investment Solutions team view
We met with PH&N twice in January 2025 to discuss the changes with Kedwell, Raymond, Fernando and Neilson, as well as to become better acquainted with Tron and David. We view the departures of Kedwell and Raymond from PH&N U.S. Equity as a significant loss for the strategy. Kedwell and Raymond have been part of the RBC GAM since 2002 and have played an extensive role in building the North American Equities team and creating and managing the PH&N U.S. Equity strategy.
However, we are comfortable that Tron provides continuity for the strategy and David has strong research and portfolio management experience in North American equities. Both Kedwell and Raymond remain part of RBC GAM and can continue to support the strategy to a limited extent. PH&N has indicated that no change to investment philosophy, process or turnover is expected with the change in lead PMs.
We are also comfortable with the promotions of Fernando and Neilson to Co-Heads of North American Equities. Both have been long-tenured members of the team and have significant research and portfolio management experience.
We have placed the PH&N U.S. Equity fund On Watch. It is important to note that we have not placed the PH&N Canadian Equity Value to our Watch List as there is no change to the PM team. Fernando and Neilson were promoted to Co-Heads of the North American Equity team and remain on the Canadian Equity Value fund. Fernando and Neilson will continue to spend 90% of their time on PM related duties and the remaining 10% on their new roles. We will continue to monitor both funds and communicate further as needed.
Questions?
Please contact your Sun Life Group Retirement Services representative*.
*In Quebec, registered as a Group annuity plans advisor.