Sunlife becomes the first capital accumulation plan adopter of AlphaFixe Capital’s co-created fixed income strategy for plan members
Plan sponsors using Sunlife’s Group Retirement Savings Core investment platform can now offer members a bond fund that scores corporate and government borrowers on reconciliation performance.
Sunlife is the first adopter of the strategy in the Capital Accumulation Plans space, according to AlphaFixe Capital’s announcement of its Reconciliation Fund.
Michael Van Alphen, senior vice-president of group retirement services at Sun Life, said in the announcement that making the AlphaFixe ESG+I Reconciliation Fund available applies the scale and reach of workplace savings to reconciliation.
Van Alphen said Sun Life is taking the step with Indigenous Peoples and AlphaFixe.
AlphaFixe describes the fund as a first-of-its-kind fixed-income strategy combining financing that benefits Indigenous Peoples with investment in companies and governments demonstrating stronger reconciliation practices.
It runs two approaches side by side, the firm said: financing eligible investments that directly benefit Indigenous Peoples, and applying a Reconciliation Score to select borrowers performing more strongly than their peers.
Direct financing covers Indigenous equity ownership, equitable partnerships, infrastructures, essential services and economic development.
The fund grew out of AlphaFixe’s green bond investing, which prompted questions about how projects on Indigenous Lands impact Indigenous Peoples.
AlphaFixe worked with Indigenous representatives to co-create the reconciliation scoring methodology, and an Indigenous Advisory Committee now provides independent, ongoing advice and guidance.
The committee includes Alexandre Bacon, Amanda Calla, Chief Derek Epp, Wade Griffin, Kahsennenhawe Sky-Deer, and Raylene Whitford.
“The next evolution of economic reconciliation is not only about First Nations accessing capital, but also about influencing where capital flows and who benefits from those investments,” said Chief Derek Epp of Ch’íyáqtel First Nation, chair of the First Nations Finance Authority and a committee member.
Wade Griffin, a Mohawk from Six Nations of the Grand River and vice president and partner at K’ĀN Partners, an Indigenous-owned investment and advisory firm operating across Canada and the United States, said, “My hope is the Fund helps move reconciliation from a statement into a balance sheet.”
Ongoing engagement with companies and governments helps AlphaFixe assess their disclosures, track progress and encourage stronger practices, including action in response to the Truth and Reconciliation Commission’s Call to Action 92.
For First Nations, trusts and Indigenous organizations, the fund connects financial objectives with community priorities, while a revenue-sharing arrangement provides benefits to eligible Indigenous investors, subject to the fund’s terms.
Sébastien Rhéaume, co-founder, chief investment officer, and managing director of AlphaFixe Capital in Montreal, said the Reconciliation Fund came out of three years of knowledge shared by Indigenous people.
Rhéaume said the fund aims to support Indigenous priorities across capital markets.
Jonathan Lapointe, vice-president of business development and a partner at AlphaFixe, co-chairs the advisory committee and leads the initiative.
AlphaFixe was founded in 2008, is wholly owned by its investment professionals, manages fixed income assets exclusively, and held $20.3bn in assets under management as of September 30.
