Sun Life Financial Inc. and CI Investments Inc. have launched a new segregated fund solution designed to help Canadians achieve financial security through a guaranteed income for life and other powerful features, the two companies said Thursday.

SunWise Essential Series is available in three classes with different guarantees, allowing clients to customize a solution that effectively meets their individual needs for investing, and retirement and estate planning.

“Many Canadians are concerned about building their savings and achieving a secure retirement income,” says Kevin Dougherty, president, Sun Life Financial Canada (TSX:SLF). “The SunWise Essential Series is designed to offer the growth potential of investment funds and guaranteed retirement income, combined with the benefits of an insurance contract, including estate planning advantages and potential creditor protection.”

The new series offers a choice of up to 74 funds, depending on the class, representing a broad assortment of mandates, investment approaches and portfolio managers. The lineup includes leading portfolio management teams from CI Investments, Dynamic Funds, Fidelity Investments, Franklin Templeton Investments, TD Asset Management and RBC Global Asset Management.

Clients can choose from three classes, depending on their goals: Income Class, Investment Class and Estate Class:

Income Class offers a guaranteed, sustainable income for life available at age 65 and other benefits that include:

> a 100% principal guarantee at death, reduced proportionately by withdrawals;

> a 5% bonus on the clients’ guaranteed income for every year that they do not make a withdrawal of Income Class units — this bonus is available for 15 years following the first purchase of Income Class units;

> automatic resets every three years that lock in investment gains and can increase the guarantees;

> age-tiered withdrawals — clients can receive a larger payout by starting their income payments at age 70 or later; and

> a two-life income stream option –if one spouse dies, the surviving spouse continues to receive income, at the same payment amount, for the rest of their life.

“SunWise Essential Series Income Class is designed to provide a secure and predictable income in retirement,” said Derek Green, president of CI Investments (TSX:CIX). “It ensures that Canadians won’t outlive their money and can help them deal with the risks of inflation and market fluctuations before and throughout their retirement.”

Investment Class is primarily for investors who are continuing to build their wealth and want to see their investments grow. Clients can maximize their exposure to the growth potential of the markets with 100% equity investments in their accounts. It provides a 75% principal guarantee at death, reduced proportionately by withdrawals.

Estate Class is for Canadians who are concerned primarily about preserving their assets for their heirs, including the minimization of estate settlement costs and delays. It provides a 100% principal guarantee at death, reduced proportionately by withdrawals.

These new policy offerings build on the experience and expertise of Sun Life Financial and CI Investments in providing segregated funds, with the two firms having more than $11 billion in segregated funds under management.

SunWise Elite to close to new investors

With the launch of SunWise Essential Series, SunWise Elite, including SunWise Elite Plus, will be closed to new investors after October 15. Existing Class B, Class C, Class B Guaranteed Withdrawal Benefit (GWB) and Class C (GWB) policyholders can continue to make deposits, with subsequent deposits subject to a $25,000 annual limit, which will take effect on November 1. All SunWise Elite and SunWise Elite Plus policyholders will continue to be entitled to the features and benefits, including all guarantees, outlined in their contract.

IE