Update on the BlackRock Real Return Bond Index Segregated Fund

January 13, 2025

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 fund listed below, which is established as a segregated fund in accordance with the Insurance Companies Act (Canada).

Starting March 31, 2025, BlackRock Asset Management Canada Limited (“BlackRock”) will implement the following changes to the BlackRock Real Return Bond Index Fund (“the Fund”):

  • Change the Fund’s benchmark from the FTSE Canada Real Return Bond Index to the FTSE Canada 0+ Year Real Return Bond Index.
  • Close the Fund to new contributions from existing investors, including the BlackRock Real Return Bond Index Segregated Fund (“Segregated Fund”) which is available on Sun Life’s Defined Benefit (DB) investment platform.
  • Hold the securities in the Fund to maturity and distribute the proceeds from the maturing securities to investors through unit redemptions. BlackRock won’t reinvest the proceeds in the remaining securities in the benchmark index. Sun Life, in turn, will distribute these proceeds to your plan(s).

BlackRock is making the changes due to the Government of Canada’s decision to stop the issuance of real return bonds (“RRB”) in November 2022.

Effective immediately, Sun Life will no longer market the Segregated Fund as part of the DB investment platform. This means that the Segregated Fund will no longer be available to plan sponsors who don’t already have it in their plan(s). We will continue to conduct governance activities on the Segregated Fund for the foreseeable future. 

Sun Life will also close the Segregated Fund to new contributions effective March 31, 2025.

Do you have to take any action?

We encourage you to review whether the Segregated Fund remains appropriate for your plan, since your allocation will get smaller over time as more securities reach their maturity.

If you decide to keep the Segregated Fund in your plan, you’ll need to select another fund in the plan to receive the proceeds from the maturing securities.

We’ll distribute the proceeds as interfund transfers. You’ll see a transfer out of the Segregated Fund and a transfer into your selected fund. We’ll follow up with you before the first security matures in December 2026 to get your instruction about the selected fund. 

Questions?

Please contact your Sun Life Group Retirement Services representative (In Quebec, registered as a Group annuity plans advisor).