CC&L Updates to Investment Policies

April 09, 2026

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).

Plan sponsors don’t need to take any immediate action as a result of this update.

On January 1, 2026, CC&L made amendments to the Statement of Investment Policies and Procedures (SIP&P) for the CC&L Group Balanced Fund, CC&L Group Bond Fund , CC&L Group Income & Growth Fund and the CC&L Group Canadian Equity Fund. 

CC&L Group Balanced Plus Fund & CC&L Group Bond Fund

  1. Addition of unrated bonds provided that they would be rated A- or higher if a ratings agency were to rate them, in CC&L’s opinion. This will specifically allow the Funds to hold Quebec municipal bonds. CC&L believes these provide enhanced portfolio diversification and they will add the bonds as off-benchmark holdings. CC&L will rate these bonds for portfolio-level analysis and compliance monitoring.  
  2. Clarification of Minimum Credit Quality Language to address inconsistencies regarding high-yield (below investment-grade) holdings. The SIP&P will specify that debt securities must carry a minimum BBB-rating by DBRS, S&P or an equivalent agency, at the time of the purchase.

CC&L Group Income & Growth Fund

  1. Benchmark revision: CC&L is revising the benchmark for the underlying High Yield fund (an underlying component of CC&L Group Income & Growth Fund) by removing the unhedged U.S. dollar exposure. This is due to CC&Ls view that structural shifts have weakened the U.S. dollar’s role as a safe-haven asset. CC&L believes that the revised benchmark will better reflect their current investment approach and the Fund’s focus on Canadian-dollar exposure. 
  2. Performance objective update: CC&L replaced the explicit added value target of 1.25% above the benchmark, to a more flexible objective of outperforming the benchmark over a full market cycle, which aligns more with industry standards. 

Old Benchmark

New Benchmark

30% Bank of America Merrill Lynch BB US High Yield Index, 30% Bank of America Merrill Lynch BB US High Yield Index (hedged CAD), 30% FTSE Canada Corporate BBB Bond Index and 10% Bank of America Merrill Lynch BB-B Canada High Yield Index.

60% Bank of America Merrill Lynch BB US High Yield Index (hedged CAD), 30% FTSE Canada Corporate BBB Bond Index and 10% Bank of America Merrill Lynch BB-B Canada High Yield Index.

CC&L Group Canadian Equity Fund

  1. Benchmark revision: CC&L has changed the benchmark from 98% S&P/TSX Capped Composite Index + 2% FTSE TMX Canada 91-day T bill Index to 100% S&P/TSX  Capped Composite Index. Although the benchmark previously included a small cash component, the Fund has historically maintained minimal cash holdings (between 0-10 bps over the last ten years). The Fund is managed as a fully invested equity strategy.
  2. Objective revision: The fund’s objective has also changed to reflect the benchmark revision.  

Old Objective

New Objective

Generate returns equal to the return of the 98% S&P/TSX Capped Composite Index + 2% FTSE TMX Canada 91 day T bill Index plus 2% per annum over a market cycle.

Generate returns equal to the return of the S&P/TSX Capped Composite Index plus 2 % per annum over a market cycle.

Sun Life GRS Investment Solutions team view

We have no concerns with CC&L’s SIP&P updates. The changes will not significantly impact the funds and are designed to either improve portfolio diversification or better reflect how the funds are being managed. 

Questions?

Please contact your Sun Life Group Retirement Services Representative*.

*In Quebec, registered as a Group annuity plans advisor.