Addition of the Capital Group Multi-Sector Income Segregated Fund 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). 

We’re pleased to announce the addition of the Capital Group Multi-Sector Income Segregated Fund (the Fund) to the Core investment platform. The Fund is a global fixed income strategy that aims to achieve a high level of current income through investments in a broad range of bonds and other debt securities.

The Fund’s higher exposure to credit is complementary to other fixed income investment options on our platform. More specifically, the Fund invests in high-yield corporates, investment-grade corporates, emerging markets and securitized debt.

Capital Group’s fixed income platform incorporates bottom-up fundamental research with top-down research and perspectives. The underlying strategy’s inception was in March 2019, and the Canadian fund was launched in June 2022.

The Fund seeks to provide less volatility and more capital preservation compared to a standalone high-yield or emerging market debt fund. The Fund has the flexibility to make changes to sector allocations in response to market conditions, investment insights and outlook.

The investment team is well-resourced and experienced, leveraging Capital Group’s multi-manager approach. The Fund is managed by a six-member portfolio management team with long-tenured industry and firm experience. The portfolio management team consists of Principal Investment Officer, Damien McCann, who is responsible for overall asset allocation and risk management. The rest of the team consists of co-Portfolio Managers Scott Sykes, Shannon Ward, Sandro Lazzarini, Xavier Goss and Robert Burgess. They are also supported by the Capital Group global research platform of 71 fixed income and macro / quantitative analysts.

The Fund is managed within the following key guidelines:

• Minimum: 80% in bonds and other debt instruments at the time of acquisition
• Invest in debt securities across the credit spectrum (allocations show a typical range and not limits):
  • High yield corporate debt: maximum 65%, minimum 25%, neutral allocation 45%.
  • Investment grade corporate debt: maximum 50%, minimum 10%, neutral allocation 30%.
  • Emerging market debt: maximum 25%, minimum 5%, neutral allocation 15%.
  • Securitized: maximum 20%, minimum 0%, neutral allocation 10%.
  • Opportunistic: maximum 20%, minimum 0%.
• Invest opportunistically in other sectors including US government debt, municipal debt, and non-corporate credit, as well as securities of issuers in countries outside of Canada and the US.
• Target of 300-400 issuers.
• Benchmark: 45% Bloomberg U.S. High Yield Index 2% Issuer Cap, 30% Bloomberg U.S. Corporate Index, 15% J.P. Morgan EMBI Global Diversified Index, 8% Bloomberg Non-Agency CMBS Ex AAA Index, 2% Bloomberg ABS Ex AAA Index.

By the end of September 2026, you can find more information about the Fund by accessing the Morningstar section of the plan sponsor site.

About Capital Group

Capital Group is a privately owned, independent investment firm with 32 offices across Asia, Australia, Europe and the Americas. The firm has over 400 investment professionals and manages over US$3.2 trillion in assets. Capital Group has robust capabilities and broad resources across its US $664.6 billion fixed income platform.

Capital Group use a proprietary approach (the “Capital System”) to manage all of their investment strategies. Every strategy has a team of portfolio managers who each manage a portion of the portfolio. The portfolio managers have diverse backgrounds and complementary investment approaches. The firm has multi-layered governance structure. Each strategy has a Principal Investment Officer who oversees the overall strategy and guides asset distribution among the portfolio managers. The firm’s Investment Coordinating Groups and Global Investment Control provide additional oversight.

Do you have to take any action?

You don’t need to take any action. You may consider whether the new fund would be a suitable addition to your lineup.