Revised Benchmark returns for the Sun Life Milestone Target Date Segregated Funds

October 15, 2024

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).

SLGI Asset Management Inc. (SLGI) recently notified Sun Life Group Retirement Services (GRS) that benchmark returns for the Sun Life Milestone Target Date Segregated Funds (“Milestone Funds”) reported in Morningstar® were incorrect.

It’s important to note that the returns of the Milestone Funds have always been correct. SLGI revised only the Milestone Funds’ benchmark returns.

The error affected benchmark returns for the months of April, May and June 2024. SLGI corrected them on August 18, 2024. The table below shows the difference between the incorrect and revised benchmark returns over the three-month period.

 

April - June 2024 Original (Q2 2024) Returns

April - June 2024 Revised (Q2 2024) Returns

Difference

2025 Milestone Benchmark

1.35%

1.32%

-0.03%

2030 Milestone Benchmark

1.22%

1.12%

-0.10%

2035 Milestone Benchmark

1.39%

1.20%

-0.19%

2040 Milestone Benchmark

1.53%

1.26%

-0.27%

2045 Milestone Benchmark

1.82%

1.49%

-0.33%

2050 Milestone Benchmark

1.82%

1.47%

-0.35%

2055 Milestone Benchmark

3.46%

3.12%

-0.34%

2060 Milestone Benchmark

3.64%

3.30%

-0.34%

The error affected all annualized benchmark returns for the Milestone Funds for periods ending June 30, 2024. Morningstar® reports showed incorrect benchmark returns between May 5 and August 18, 2024 (when SLGI revised the returns). All reports run after August 18, 2024, reflected the correct benchmark returns for the Milestone Funds.

SLGI cited a miscommunication among their reporting teams as the reason for the error.

SLGI has applied the following processes to prevent any future errors:

  • SLGI engaged Risk and Governance teams to perform a detailed review of the benchmark update process.
  • SLGI put tighter controls over benchmark communications in place.
  • SLGI added a formal review step to the process which includes sign-offs from business unit leaders.
  • SLGI created a new performance team with the goal to consolidate performance responsibilities across product, portfolio management, and investment operations.

How does this affect you and your plan members?

Revised benchmark returns are available on the plan sponsor and plan member services website and on Morningstar®.

You or your plan members don’t have to take any action because of this update. They will receive a message via the Sun Life message centre.  You can see the message here.

Questions?

Please contact your Sun Life Group Retirement Services representative*.

*In Quebec, registered as a Group annuity plans advisor.