Toronto-based Sun Life Global Investments is launching a new suite of income funds, which will be available to Canadian investors in early 2013.
The launch will include four income-generating funds comprising the new Sun Life Granite Managed Income Portfolios. The Granite portfolios are a kind of extension of the Sun Life Managed Portfolios, which are target risk portfolios with asset classes defined by risk profiles, says Sadiq Adatia, chief investment officer, Sun Life Global Investments. The difference with the Granite portfolios is that instead of using risk, managers will use income needs to decide on which asset classes to use.
Sun Life is also launching a fifth fund that will have more of a focus on value as opposed to income.
The funds are meant to help clients who are moving into the de-accumulation phase of retirement and want to generate income from their portfolios, says Adatia, while still growing their capital. As well, given that a bull market with double-digit returns is unlikely any time soon, he says, people are becoming more interested in income earning funds that will help protect their savings.
“Our key [goal] that we have inherent in all our portfolios is protection of capital,” he says, “we’re just giving [investors] income while still protecting their portfolio and making sure that they’re not destroying their nest egg while doing that.”
The new income funds will employ the expertise of many investment managers with proven track
records, including those from Sun Life¹s newest partners, Dynamic Funds and Sentry Investments (both headquartered in Toronto).
The partnerships and new funds are Sun Life Global Investments’ latest move to grow its business in Canada. Since launching in October 2010, Sun Life Global Investments’ platform has grown to include 60 funds with $5.7 billion in client assets under management.