Sun Life Money Market Segregated Fund Closure and Asset Transfer

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). 

Please note that the closing fund is not the Sun Life Financial Money Market Segregated Fund (SLF Money Market Fund). SLF Money Market Fund is our flagship fund that will continue to be available on our platform. The closing fund is a legacy version of the SLF Money Market Fund that is much smaller.

Action may be required

You don’t have to take action if you are comfortable with the replacement fund described below. If you wish to select a different replacement fund, please review the communication in detail.

Sun Life Group Retirement Services (GRS) regularly reviews the Core investment platform in response to Client interest and evolving fund offerings in the market.

The Sun Life Money Market Segregated Fund (the closing fund) has been no longer marketed on the Sun Life core platform for more than 10 years. Governance activities on the fund have continued since then. We have now decided to close the fund on December 1, 2026, due to low assets and to streamline our offering in the Money Market category.

We’ll continue to conduct governance activities on the closing fund and members may continue to invest in and contribute to the fund until its closure.

On December 1, 2026, we’ll transfer any money in – and any future contributions directed to - the closing fund to the replacement option as listed below.

Below is the comparison:

* FMFs include investment management fees and operating expenses.

** Sun Life is a member of Assuris. Assuris is the not for profit organization that protects Canadian policyholders in the unlikely event that their life and health insurance company fails. Details about Assuris protection are available at www.assuris.ca.

Similar to the closing fund, there would be no capital gains or losses triggered when withdrawing non-registered assets invested in the GDIA because the GDIA only generates interest income.

Your plan(s) may not currently offer the GDIA in the lineup. In that case, we’ll add the GDIA to your fund lineup on the same day, before the asset transfer occurs on December 1, 2026.

The transfer will happen as described above, unless we receive different instructions from you in writing (see next paragraph).

You may want to transfer the money in the fund into either:

• Another fund currently available in your line-up, or
• An alternative fund on the Core investment platform which better suits your plan’s needs (see example below)

A different replacement option to consider

Within the Money Market funds, we also offer the SLF Money Market Fund on the core investment platform. This fund is managed by the same manager (SLGI Asset Management Inc. with MFS as sub-advisor) and invests in the same underlying fund as the closing fund.

You can obtain more information about the SLF Money Market Fund by accessing the Morningstar section of the plan sponsor web site.

If you wish to select the SLF Money Market Fund, you need to make this selection and inform Sun Life of your decision by October 16, 2026.

You don’t have to take any action if you are satisfied with the replacement option and transfer date as described above.

My Money For Life (MMFL) Coverage Considerations

If your plan has My Money For Life (MMFL) coverage, any assets in the closing fund covered by MMFL will be transferred to the SLF Money Market Fund. This transfer will take place on December 1, 2026.

How will this affect your members?

On December 1, 2026, we’ll automatically transfer any money remaining in – and any future contributions directed to – the closing fund to the replacement option. When the change happens, your members will see a sale of the closing fund and the purchase of the replacement option in their account(s).  This change won’t result in a taxable capital gain or loss.

We’ll send an email to members who currently hold the closing fund on or around October 30, 2026. Here is a copy for your reference.

Plan members can also move their money to any other funds offered in the plan. They can do so at any time before the transfer automatically takes place on December 1, 2026.