Sun Life Financial (TSX:SLF)and CI Investments Inc. (TSX:CIX) are rolling out a new segregated fund solution designed to maximize equity exposure for investors, the organizations said Monday.

SunWise Elite Bundles allow investors to maximize their equity exposure within the SunWise Elite segregated funds, while benefiting from the expertise of leading portfolio managers.

Each bundle combines one or two equity funds with an income fund, and is rebalanced monthly to provide the maximum 70% equity exposure. (Under the new SunWise Elite contract, a portfolio must have a minimum 30% allocation to fixed-income investments.)

Unlike other portfolio solutions, where asset allocation is performed at the fund level, the bundles are rebalanced based on the actual securities held in each underlying fund. Any cash or fixed-income securities held in the equity funds are counted as part of the income allocation.

“With SunWise Elite Bundles, investors automatically maximize the growth potential of their investment while enjoying the comfort of the guarantees offered by SunWise Elite, as well as SunWise Elite Plus with guaranteed income for life,” says Kevin Dougherty, president, Sun Life Financial Canada.

The bundles are available for SunWise Elite Combined Guarantee Option (Class B) and Basic Guarantee Option (Class C) units, and with SunWise Elite Plus, the guaranteed minimum withdrawal benefit (GMWB) rider, which provides income for life.

“SunWise Elite Bundles provide portfolios managed by some of the best investment teams available in Canada today, including Gerry Coleman of Harbour Advisors, Eric Bushell of Signature Global Advisors, and Alan Radlo of Cambridge Advisors,” says Peter Anderson, CEO, CI Investments.

In addition, two of the bundles offer leading funds from Dynamic Funds and Fidelity Investments.

Effective Monday, seven bundles and one other fund have been added to the SunWise Elite lineup:

• SunWise Elite CI Cambridge Core Bundle;
• SunWise Elite CI Cambridge Balanced Bundle;
• SunWise Elite CI Harbour Core Bundle;
• SunWise Elite CI Harbour Balanced Bundle;
• SunWise Elite CI Signature Core Bundle;
• SunWise Elite Dynamic Core Bundle;
• SunWise Elite Fidelity Disciplined Core Bundle; and
• SunWise Elite CI Signature Corporate Bond Corporate Fund.

A core bundle combines one or two equity funds with a conservative bond fund. A balanced bundle combines one equity fund with a diversified income fund.

The additions bring the total number of SunWise Elite funds to 62, making it the most extensive seg fund lineup available in Canada with the GMWB. The lineup is diversified by region, asset class, investment style and portfolio manager.

IE