Addition of Sun Life ETF+ Series of Target Risk Funds to the Core investment platform
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).
Sun Life Group Retirement Services (GRS) is pleased to announce the addition of the Sun Life ETF+ Series of Target Risk Funds (ETF+ Funds) to the Core investment platform.
Members are increasingly asking for ETF options in their group plans. As we recently wrote, direct ETFs are not generally available in group plans. Our findings indicate that pooled index funds continue to be the most cost-effective and efficient way to provide passive investment options to CAP plan members. This remains true. However, some members continue to ask for ETF labelled options, in addition to passive investments. The Sun Life ETF+ Funds combine active mutual fund management with passive ETF indexing to offer diversified, lower-cost, and liquid investment options. These funds are the first ETF-labelled investment option on our platform and available for members seeking varying risk profiles.
About the ETF+ Funds
Sun Life Global Investments’ (SLGI’s) Multi-Asset Solutions (MAS) team manages the ETF+ Funds. The MAS team also manages the Sun Life Granite series of funds (Granite Target Date, Granite Target Risk and Granite Index+ Target Date).
Incepted in October 2018, the funds are a suite of five target risk funds designed for investors who want exposure to exchange traded funds (ETFs). The ETF+ Funds are predominately passive as the portfolios only have exposure to passive oriented ETFs. Active management comes in the form of strategic asset allocation and allocation to the “+” component. A portion of the “+” component refers to the allocation to alternative assets (private fixed income and gold). SLGI believes that the alternative assets can help to provide higher yields, diversification, and downside protection. SLGI initiated the allocation to the alternative assets in December 2025.
The other part of the “+” refers to SLGI’s new U.S. Sector Rotation strategy. The MAS team designs the strategy to capture short-term opportunities. The strategy tactically allocates to various U.S. industry sectors (through passive US Equity Sector ETFs) in response to macroeconomic trends, market cycles, valuations and shifts in investor sentiment.
The SL ETF+ Funds will be managed with the following strategic asset mixes:
|
Sun Life Fixed Income ETF+ |
Sun Life Conservative ETF+ |
Sun Life Balanced ETF+ |
Sun Life Growth ETF+ |
Sun Life Equity ETF+ |
|---|---|---|---|---|---|
Bonds |
98.00% |
63.0% |
38.0% |
18.0% |
0.0% |
Canadian Bonds* |
70.00% |
45.0% |
26.0% |
13.0% |
0.0% |
US Bonds (Hedged to C$) |
28.0% |
18.0% |
12.0% |
5.0% |
0.0% |
Equity |
0.0% |
35.0% |
60.0% |
80.0% |
98.0% |
Canadian Equities |
0.0% |
8.75% |
15.0% |
20.0% |
23.5% |
US Equities* |
0.0% |
17.5% |
30.0% |
40.0% |
51.0% |
International Equities |
0.0% |
7.0% |
12.0% |
16.0% |
18.5% |
Emerging Markets Equities |
0.0% |
1.75% |
3.0% |
4.0% |
5.0% |
Alternatives |
2.0% |
2.0% |
2.0% |
2.0% |
2.0% |
Gold |
2.0% |
2.0% |
2.0% |
2.0% |
2.0% |
* U.S. Sector Rotation strategy is part of U.S. equities, Private Fixed Income is part of Canadian Bonds.
The ETF+ Funds benchmarks are below:
Index |
SL Fixed Income ETF+ |
SL Conservative ETF+ |
SL Balanced ETF+ |
SL Growth ETF+ |
SL Equity ETF+ |
|---|---|---|---|---|---|
FTSE Canada Universe Bond |
70% |
45% |
25% |
15% |
0% |
Bloomberg US Agg C$ Hedged |
30% |
20% |
15% |
5% |
0% |
S&P/TSX Capped Composite |
0% |
10% |
15% |
20% |
25% |
MSCI All Country World C$ |
0% |
25% |
45% |
60% |
75% |
Do you have to take any action?
You don’t need to take any action. You may consider whether the ETF+ Funds are suitable for your plan.
The GRS Investment Solutions team, in partnership with your consultant or advisor, can help with a review of options available on our platform.
Questions?
Please contact your Sun Life Group Retirement Services representative*.
*In Quebec, registered as a Group annuity plans advisor.