The new option keeps private market exposure while lowering costs
Sun Life adds passive target date funds with private market access to its Granite lineup
Eighty-one percent of Canadian workplace plans use target date funds as their default investment — yet until now, sponsors choosing the Granite series had only one option: active management.
SLGI Asset Management Inc. (Sun Life Global Investments) launched Sun Life Granite Index+ Target Date Funds on Tuesday, adding a predominantly passive, lower-cost option to its Granite lineup, which has been running for over 15 years. The new funds retain exposure to private markets
The new funds invest across 11 asset classes: seven passive index funds covering Canadian, US, international, and emerging market equities, bonds, and commodities, plus private fixed income, commercial mortgages, and global direct real estate.
Sun Life said the private market component is designed to provide higher income and a buffer against inflation and downside risk.
The funds are managed by Sun Life Global Investments' Canadian-based Multi-Asset Solutions team, using the same investment process as the original Granite series, and draw on a partnership with State Street Global Advisors and private market capabilities through SLC Management and BGO.
They are available exclusively through Sun Life Group Retirement Services.
Anne Meloche, head of institutional business at Sun Life Global Investments, said Canadian employer needs are shifting and that companies need options matching “their investment preferences, fee budget and fiduciary responsibilities” to support retirement readiness.
The Granite Index+ suite spans nine funds — a Retirement Fund plus target dates from 2030 to 2065 in five-year increments.
