Addition of the RBC QUBE Canadian, U.S., International and Global Equity Segregated 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). 

We’re pleased to announce the addition of the RBC QUBE Canadian, U.S., International and Global Equity Segregated Funds (the Funds) to the Core investment platform. The Funds address the increasing demand for actively managed, low tracking error, geographic and sector neutral strategies.

The RBC QUBE Quantitative Investments Team offers a well-structured approach to building quantitative strategies that include all essential elements of value, growth, quality and sentiment. The value-add comes from selecting stocks on a best of industry basis using fundamentally influenced signals.

The RBC Quantitative Investments Team, which was established in 2011, is collectively responsible for managing the Funds. The team is led by Jaco van der Walt, Global Head of Quantitative Investments, which is comprised of two portfolio managers, Oliver McMahon and Norman So, seven quantitative researchers and six quantitative system developers.

The core philosophy that underlies all the RBC Quantitative Investments Team’s quantitative equity strategies is a belief that market inefficiencies exist. These inefficiencies give rise to long-term risk premia. Furthermore, quantitative investment managers can exploit these inefficiencies by using a systematic process that, unlike traditional fundamental approaches, minimizes subjectivity and discretion and uses data and technology to exploit an information processing advantage.

To that end, the team blends the benefits of human and machine by investing in multiple factors backed by economic rationale and empirical evidence across time and regions, and with disciplined portfolio manager oversight. The team seeks to diversify factor exposures while minimizing idiosyncratic exposures. On an ongoing basis, the team conducts research to innovate investment processes and tools. 

The Funds are managed within the following guidelines and objectives:

RBC QUBE Canadian Equity fund (Inception: December 2011)

• Value add target: 1.5%
• Tracking error target: 2-3%
• Security constraints: benchmark +/- 2% or 30 bps of impact risk
• Sector constraints: benchmark +/- 2% using custom sectors or 30 bps of impact risk
• Large & Mid cap: benchmark +/-5%
• Small Cap: benchmark +/-2.5%
• Average number of holdings: 60-150
• Cash and equivalents: 0-5%
• Benchmark: S&P/TSX Capped Composite TR

RBC QUBE U.S. Equity fund (Inception: July 2013)

• Value add target: 1.5%
• Tracking error target: 2-3%.
• Security constraints: benchmark +/- 20 bps of impact risk
• Sector constraints: benchmark +/- 2% using custom sectors
• Large & Mid cap: benchmark +/-5%
• Small Cap: benchmark +/-2.5%
• Average number of holdings: 50-200
• Cash and equivalents: 0-5%
• Benchmark: S&P 500 TR

RBC QUBE International Equity fund (Inception: March 2026)

• Value add target: 2%
• Tracking error target: 1.5-3.5%
• Security constraints: benchmark +/- 3% or 30 bps of impact risk
• Sector constraints: benchmark +/- 3% using custom sectors
• Currency constraints: benchmark +/-3%
• Regional constraints: +/-5%
• Large & Mid cap: benchmark +/-5%
• Small Cap: benchmark +/-2.5%
• Average number of holdings: 50-300
• Cash and equivalents: 0-5%
• Benchmark: MSCI EAFE TR Net (CAD)

RBC QUBE Global Equity fund (Inception: July 2013)

• Value add target: 2%
• Tracking error target: 2-3%
• Security constraints: benchmark +/- 3% or 30 bps of impact risk
• Sector constraints: benchmark +/- 3% using custom sectors or 30 bps of impact risk
• Currency constraints: benchmark +/-3%
• Regional constraints: +/-5%
• Large & Mid cap: benchmark +/-5%
• Small Cap: benchmark +/-2.5%
• Average number of holdings: 100-300
• Cash and equivalents: 0-5%
• Benchmark: MSCI World TR Net (CAD)

Each fund’s investment objective is to provide long term capital appreciation through investment in equity and equity-like securities of issuers in the respective region.

The addition of the Funds represents Sun Life’s commitment to offer plan sponsors and members with diverse investment options.

By the end of September 2026, you will be able to find more information about the Funds by accessing the Morningstar section of the plan sponsor web site.

About RBC Global Asset Management

RBC GAM is the asset management division of Royal Bank of Canada (RBC) that has responsibility for managing discretionary assets. The firm includes the separate but affiliated subsidiary, RBC Global Asset Management Inc. (including PH&N Institutional).

RBC purchased Phillips, Hager & North Investment Management Ltd. (PH&N) on May 1, 2008. PH&N are an investment manager currently on Sun Life’s Core Investment Platform, so RBC GAM are not considered a new investment manager to the platform.

The RBC GAM group of companies, which includes RBC GAM Inc. (including PH&N Institutional), manage approximately $810 billion in assets and have approximately 1,600 employees located across Canada, the United States, Europe and Asia.

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.