Templeton Global Bond Segregated Fund Closure and Asset Transfer

The replacement fund invests in the same asset class of global fixed income. The investment management fees for the replacement fund will be the same, or lower, than those for the discontinued fund.

Your plan(s) may not currently offer the replacement fund in the lineup. In that case, we’ll automatically add the replacement fund to your fund lineup before the asset transfer occurs on May 6, 2026.

The transfer will happen as described above, unless we receive different instructions from you in writing.

You may want to transfer the money in the discontinued fund into either:

• Another fund currently available in your line-up, or
• An alternative fund on the Core investment platform which better suits your plan’s needs (see example below)

A different replacement option to consider

Within Specialty fixed income, we also offer the PIMCO Canada Monthly Income Fund Segregated Fund on the core investment platform. You can learn more about this fund later on in this message.

If you wish to select the PIMCO Canada Monthly Income Canada Segregated Fund, or a different replacement fund and/or asset transfer date, you need to make this selection and inform Sun Life of your decision by March 9, 2026.

You don’t have to take any action if you are satisfied with the replacement fund.

How will this affect your members?

On May 6, 2026, we’ll automatically transfer any money remaining in – and any future contributions directed to – the discontinued fund to the replacement fund. When the change happens, your members will see a sale of the discontinued fund and the purchase of the replacement fund in their account(s).  These transactions will not result in a taxable capital gain or loss for your members as there is no non-registered money in the fund.

We’ll send an email to members who currently hold the discontinued fund on or around March 23, 2026. Here is a copy for your reference.

Plan members can also move their money to any other funds offered in the plan. They can do so at any time before the transfer automatically takes place on May 6, 2026.

Replacement Fund

The MFS Global Fixed Income Segregated Fund is a global fixed income portfolio that seeks a moderate rate of return through income and capital gains. The fund invests in fixed income debt instruments including corporate, government and mortgage-backed securities, emerging markets debt, high yield debt and bank loans.

The investment team adheres to a disciplined investment process that establishes security and market views through a combination of intensive top-down macroeconomic analysis and bottom-up research. Foreign currency positions are not hedged back to Canadian dollars.

The fund’s benchmark is the Bloomberg Global Aggregate Index ($CAD).

Robert Spector and Pilar Gomez-Bravo are the lead Portfolio Managers of the fund. 

Alternate Replacement Fund – PIMCO Canada Monthly Income

The PIMCO Canada Monthly Income Segregated Fund may be an attractive option for income-oriented investors who seek a bond investment offering the potential for a relatively high and consistent stream of income with an emphasis on U.S. fixed income securities. The investment objective of the Fund is to maximize current income consistent with preservation of capital and prudent investment management. Long-term capital appreciation is a secondary objective. It invests primarily in a diversified portfolio of non-Canadian dollar fixed income Instruments of varying maturities. The fund may invest in income-generating fixed income securities across any sector, credit quality and geographic region. This includes high yield securities and emerging market debt. The fund will use derivatives to create some investment positions and to hedge some investment positions. The fund reinvests the income generated from its investments back into the fund, thus you won’t receive income distributions.

The fund’s benchmark is the Barclays U.S. Aggregate Bond Index (CAD hedged).

Alfred Murata is the lead Portfolio Manager, and is supported by co-PMs, Dan Ivascyn and Joshua Anderson. 

Please note that the fees for the PIMCO Canada Monthly Income fund are higher than the discontinued fund. We selected the MFS Global Fixed Income fund, as the default (automatic) replacement option because it has the same or lower fees than the discontinued fund.

You can obtain more information about the MFS Global Fixed Income Segregated Fund or the PIMCO Monthly Income (Canada) Segregated Fund by accessing the Morningstar section of the plan sponsor web site.