Upcoming changes to SunAdvantage My Savings and FutureFinder products

November 15, 2023

Sun Life periodically reviews our product fund line ups to ensure they continue to provide our Clients with the right experience, features, and support. As a result of this review, we’re introducing some changes to enhance our SunAdvantage My Savings (“SAMS”) and FutureFinder products.

Addition of BlackRock MSCI ACWI Islamic Equity Segregated Fund (SAMS & Future Finder)

We are happy to announce the addition of the BlackRock MSCI ACWI Islamic Equity Index Segregated fund (“BlackRock Shariah Fund”) to SAMS and FutureFinder’s fund line ups. We will add the BlackRock Shariah Fund to your plan(s) on November 15, 2023. Currently the Fund is available for RRSP and DPSP only (not available for TFSA).

Shariah funds invest the assets in accordance with Islamic principles, providing an option for Muslim members. The Fund considers community wellness and promotes diversity, equality and inclusion.

The BlackRock Shariah Fund invests in units of the BlackRock CDN MSCI ACWI Islamic Equity Index pooled fund (“underlying pooled fund”). The underlying pooled fund’s investment objective is to replicate the return of the MSCI ACWI Islamic Equity Index (“Index”). The Index reflects Islamic investment principles and provides diversified exposures to global equity markets.

The Index applies screens to exclude securities based on business activities and financial ratios derived from total assets. The Index does not allow investments in:

  • Companies that are directly active in or derive more than 5% of their revenues from alcohol, tobacco, pork related products, conventional financial services, defense/weapons, gambling or adult entertainment.
  • Companies which derive significant income from interest or companies with excessive leverage.

As of August 31, 2023, the Index consists of 699 companies in large and mid-capitalization segments, across 23 developed markets and 24 emerging markets.

Shariah funds share similar objectives to socially responsible investments, such as:

  • Social justice
  • Equality and inclusion
  • Being a good steward of society and environment

For more information about Shariah investment and the BlackRock Shariah Fund, please refer to the Frequently Asked Questions and other supporting documents here.

Do you and your plan members have to take any action?

You and your members don’t have to take any action. We’ll add the BlackRock Shariah Fund as a new investment option in your plan on November 15, 2023. If members are interested in this investment option, they can select it on the member site. No money is moving to this newly available fund – it is simply a new option in the plan.

Change in default investment option in TFSA (SAMS only)

In addition, we are changing the default investment option in TFSA for SAMS, going forward. Currently, the default investment option is BlackRock Universe Bond Index Segregated Fund. Effective November 15 2023, the new default investment option will be the Sun Life Guaranteed Daily Interest Account (“GDIA”).

We are making this change to provide members with an investment option with low volatility to reduce the risk of capital loss. As the market environment has changed in recent years, the fixed income index fund’s volatility has also increased. The GDIA, in contrast, provides more stable returns with low volatility.

GDIA is an interest-bearing account with a daily interest credit. The GDIA doesn't have any minimum contribution requirement. Members can withdraw money in GDIA any time without any penalty.

The main risk that investors would be exposed to with the GDIA is credit risk. However, the level of exposure is low. This is because Sun Life guarantees investors’ principal and credited interest in the GDIA. Investors in the GDIA would only suffer losses if Sun Life were to default. This is a low-risk event, as Sun Life has a financial strength rating of AA from most rating agencies. Even in the unlikely event that Sun Life defaults on its obligations, eligible deposits are protected with coverage under Assuris for up to $100,000 each.

Do you and your plan members have to take any action?

You and your members don’t have to take any action.

There is no change for your members who currently have money in the BlackRock Universe Bond Index Fund. They may continue to keep their money in and direct their contributions to this Fund. and these assets will not move to the GDIA, as part of this change.

Questions?

Please contact your Sun Life Group Retirement Services representative