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Sun Life Multi-Strategy Target Return Fund

$9.0659
CAD
Net asset value per security (NAVPS) as of January 22, 2019
$-0.0353 -0.39%
Benchmark

Bank of Canada overnight rate

Fund category

Alternative Strategies

MorningstarTM Rating

-

Funds in category

-

Mutual fund categories are maintained by the Canadian Investment Funds Standards Committee (CIFSC).

 

SUN LIFE MULTI-STRATEGY TARGET RETURN FUND

Sun Life Multi-Strategy Target Return Fund strives to deliver long-term capital growth, regardless of market conditions. The Fund will aim to limit volatility (the extent to which the value of a security, index or investment strategy fluctuates over a period of time) to half the volatility experienced when investing in global equities as represented by the MSCI All Country World Index. Aviva Investors (the portfolio sub-advisor) seeks to accomplish these objectives by investing in a diversified portfolio of securities.

Aviva primarily invests in derivatives to achieve its return objectives. Derivatives are financial instruments whose value is derived from the value of another asset, which is known as the underlying security. The underlying security can be a financial asset, such as a stock, bond, currency or interest rate. Aviva uses derivatives to execute 25 to 35 investment strategies that span across and within asset classes. Each investment strategy focuses on generating value via a specified risk theme (review the Risk Themes section below). To help position these investment strategies for investors they have been divided among three groups:

  1. Market Strategies: Mainly include equities and bonds held for the mid to long term based on Aviva's view of where the world economy is headed. This view covers the key trends underlying leading economies and the expected returns of major asset classes such as stocks and bonds.
  2. Opportunistic Strategies: Focus on exploiting short-term changes in the market triggered by such things as a market panic or other external events. Opportunistic strategies can in part be based on such things as market trends or investing in assets which appear to be undervalued against their peers.
  3. Risk-reducing Strategies: Strive to diversify risk with strategies designed to add significant returns in periods of market volatility. This is an essential component to the portfolio as Aviva deliberately looks to identify strategies that make money if their expected near-term outlook for markets doesn't play out.

Aviva Investors allocates the Fund's capital following a comprehensive risk analysis, whereby the volatility of each investment strategy is reviewed in conjunction with the entire portfolio. This process ensures that the Fund optimizes the diversification benefits between holdings, analyzing underlying risk exposures in a number of ways, including on a historical, current and future basis. This helps Aviva select a diversified asset mix that potentially works well in both rising and falling markets.

RISK THEMES

Aviva Investors focuses on the following risk themes when allocating capital:

  • Equity risk: Strategies where the main source of returns relates to how much share prices are expected to rise or fall.
  • Credit risk: Strategies where the main source of returns is linked to how much the prices of government and corporate bonds are expected to rise or fall.
  • Duration risk/Interest rate risk: Strategies where the main source of returns relates to how far interest rates could rise or fall.
  • Currency risk: Strategies where the main source of returns relates to the outlook for the value of specific currencies.
  • Inflation risk: Strategies where the main source of returns relates to how much consumer prices are expected to rise or fall.
  • Volatility risk: Strategies where the main source of returns will be generated by volatility.

Portfolio analysis (as of November 30, 2018)

Breakdown of investment strategy mix

%
Market Strategies 39.50
Opportunistic Strategies 38.48
Risk-reducing Strategies 19.38
Cash and Cash Equivalents 2.64
Total 100.00

Source: Aviva Investors as at November 30, 2018

Top ten strategies by standalone risk %
Short US Rates 1.60
Long global financial equities 0.94
Short UK Inflation 0.84
Short UK long-end rates 0.83
Long Global Equities 0.81
Long US Equities 0.78
Long Japanese REITs 0.74
Long US Inflation 0.73
Long Emerging Markets Equities 0.68
Long European Equities 0.63

Source: Aviva Investors as at November 30, 2018

Breakdown of total standalone risk by risk theme

The Fund invests in a wide range of strategies that aim to expose the Fund to distinct types of risk. Using forecast data the information shows an illustrative picture of the expected total standalone risk of the fund strategies and how these are divided between the different types of risk.

Risk themes
% of total
standalone risk
Weighting %
Equities 4.57 31.82
Duration 4.46 31.06
Credit 0.71 4.94
Currency 1.63 11.35
Volatility 0.84 5.85
Cash 0.27 1.88
Inflation 1.88 13.09
Total 14.36 100.00

Source: Aviva Investors as at November 30, 2018.  Includes all holdings, cash & derivatives.


Expected diversification benefit from combining strategies

The Fund invests in a range of strategies which combine to diversify the risk of the Fund and to help it perform in many different market conditions. The volatility forecasts in the chart below provide an illustrative picture of the expected diversification benefit from combining the strategies within the Fund.

*Expected combined risk is the forecast volatility of the fund as measured by the annualized volatility of the current portfolio of strategies using the last two years of data.

**Global equities volatility is the historical volatility of the MSCI World Index as measured by the annualized volatility of the index over the last two years in local currency terms.

Performance analysis (as of December 31, 2018)

Calendar year YTD 2017 2016* 2015 2014 2013 2012 2011 2010 2009 2008
Total assets $M 4.4 6.6 6.5 - - - - - - - -
Fund return % -7.0 -4.1 1.7 - - - - - - - -
Category return % - - - - - - - - - - -
Distribution $/security 0.00 0.00 0.20 - - - - - - - -
Quartile
(within category)
- - - - - - - - - - -
Trailing 1 mth 3 mth 6 mth 1 yr 2 yr 3 yr 5 yr 10 yr Since
inception
Fund return % -5.4 -5.9 -7.3 -7.0 -5.6 - - - -3.7
Category return % - - - - - - - - -
MorningstarTM rating - - - - - - - - -
Quartile
(within category)
- - - - - - - - -
# of funds in category - - - - - - - - -
Calendar yearTrailing

Calendar year

Total assets $M

  • YTD
  • 2017
  • 2016*
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011
  • 2010
  • 2009
  • 2008
  • 4.4
  • 6.6
  • 6.5
  • -
  • -
  • -
  • -
  • -
  • -
  • -
  • -

Fund return %

  • YTD
  • 2017
  • 2016*
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011
  • 2010
  • 2009
  • 2008
  • -7.0
  • -4.1
  • 1.7
  • -
  • -
  • -
  • -
  • -
  • -
  • -
  • -

Category return %

  • YTD
  • 2017
  • 2016*
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011
  • 2010
  • 2009
  • 2008
  • -
  • -
  • -
  • -
  • -
  • -
  • -
  • -
  • -
  • -
  • -

Distribution $/security

  • YTD
  • 2017
  • 2016*
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011
  • 2010
  • 2009
  • 2008
  • 0.00
  • 0.00
  • 0.20
  • -
  • -
  • -
  • -
  • -
  • -
  • -
  • -

Quartile (within category)

  • YTD
  • 2017
  • 2016*
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011
  • 2010
  • 2009
  • 2008
  • -
  • -
  • -
  • -
  • -
  • -
  • -
  • -
  • -
  • -
  • -

Trailing

Fund return %

  • 1 mth
  • 3 mth
  • 6 mth
  • 1 yr
  • 2 yr
  • 3 yr
  • 5 yr
  • 10 yr
  • Since inception
  • -5.4
  • -5.9
  • -7.3
  • -7.0
  • -5.6
  • -
  • -
  • -
  • -3.7

Category return %

  • 1 mth
  • 3 mth
  • 6 mth
  • 1 yr
  • 2 yr
  • 3 yr
  • 5 yr
  • 10 yr
  • Since inception
  • -
  • -
  • -
  • -
  • -
  • -
  • -
  • -
  • -

Morningstar TM rating

  • 1 mth
  • 3 mth
  • 6 mth
  • 1 yr
  • 2 yr
  • 3 yr
  • 5 yr
  • 10 yr
  • Since inception
  • -
  • -
  • -
  • -
  • -
  • -
  • -
  • -
  • -

Quartile
(within category)

  • 1 mth
  • 3 mth
  • 6 mth
  • 1 yr
  • 2 yr
  • 3 yr
  • 5 yr
  • 10 yr
  • Since inception
  • -
  • -
  • -
  • -
  • -
  • -
  • -
  • -
  • -

# of funds in category

  • 1 mth
  • 3 mth
  • 6 mth
  • 1 yr
  • 2 yr
  • 3 yr
  • 5 yr
  • 10 yr
  • Since inception
  • -
  • -
  • -
  • -
  • -
  • -
  • -
  • -
  • -

*For the period June 06 to December 31.

Aviva Investors

Current value of a $10,000 investment

$

Time frame:

Update

Returns for funds less than 1 year old cannot be displayed. The growth of $10k calculator calculates an approximate rate of return using the performance information as at the first business day of each month in your chosen time-frame.

Investment management approach

Aviva Investors Limited

Aviva Investors' goal is to deliver the specific and meaningful outcomes that matter most to today's investor. As a global business, Aviva Investors acts as a single team - collaborating to bring together knowledge and capabilities. The firm values innovation and empowers investment teams to find and execute what they believe are great investment ideas. In-depth research and robust risk management underpin every investment decision. Aviva Investors aims to help clients achieve their goals - now and over the long term.

Overview

Investment objective

The Fund's investment objective is to seek long-term absolute return by delivering a positive return over rolling three-year periods, regardless of the prevailing market environment.

 

This Fund may be suitable for investors who:

  • seek long term capital appreciation through a globally diverse set of investment strategies;
  • are long term investors; and
  • are comfortable with low to medium investment risk.
 

Fund essentials

Inception date June 6, 2016
Min initial inv $ 500
Min addintional inv $ 50
MER % unaudited as at June 30, 2018 2.79
Management fee % 2.25
 

Management company
Sun Life Global Investments (Canada) Inc.

Sub-advisor
Aviva Investors Canada Inc.
Toronto, Ontario

Sub-advisor to Aviva Investors Canada Inc.
Aviva Investors Global Services Limited
London, United Kingdom

 
Class Load structure Currency Fund Code
A ISC CAD SUN1110
A DSC CAD SUN1210
A LSC CAD SUN1310
 

Risk profile

Risk profile: Low to medium
Refer to the Prospectus for greater detail.

Management team

Aviva Investors Global Services Limited:

  •  Peter Fitzgerald, Global Head of Multi-Assets
  •  Daniel James, Global Head of Fixed Income
  •  Ian Pizer, Multi-Assets, Senior Portfolio Manager
  •  Brendan Walsh, Multi-Assets, Portfolio Manager

Notes and Disclaimers

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. For periods greater than one year, the indicated rates of return are the historical annual compounded total returns as of the date indicated including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

Sun Life Multi-Strategy Target Return Fund is offered under a long form prospectus, which you can find at www.sunlifeglobalinvestments.com. In order to sell this fund, your financial representative must meet certain proficiency requirements.

Ratings and/or ranking information is subject to change monthly.

Morningstar is an independent organization that groups funds with generally similar investment objectives for comparison purposes and ranks them on a historical basis.

The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

Morningstar quartile rankings show how well a fund has performed compared to all other funds in its peer group. Each fund within a peer group is ranked based on its performance, and these rankings are broken into quarters or quartiles. Within a group, the top 25% (or quarter) of the funds are in the first quartile, the next 25% are in the second quartile, the next group in the third quartile, and the bottom 25% of funds with the poorest relative performance are in the fourth quartile. The point in which half the funds had better performance and half had worse performance is the median. If 100 funds are being compared, there would be four quartiles of twenty-five funds each. The median would be the fiftieth fund.

For more details on the calculation of Morningstar star ratings or quartile rankings, please see www.morningstar.ca.

Morningstar category averages are equal-weighted category returns. The calculation is simply the average of the returns for all the funds in a given category. The standard category average calculation is based on constituents of the category at the end of the period.

Categories are assigned by Canadian Investment Funds Standards Committee (CIFSC) based on an evaluation of a fund's holdings. A fund's category may change at any time. Funds within the same category may differ in terms of investment philosophy, investment process, as well as overall composition.

The calculators found on this website and/or within fund pages generated by this website and by users are provided for illustrative purposes only. The calculators are educational and/or illustrative tools and do not constitute advice with respect to investment, insurance, financial, legal, tax, accounting or similar matters.

The information contained in this fund page/profile is designed to provide you with general information related to the fund and investment alternatives and strategies and is not intended to be comprehensive investment advice applicable to individual circumstances. We strongly recommend that investors consult with a financial advisor prior to making any investment decisions.

© 2019 Morningstar Research Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.