Sun Life Global Investments announces changes to increase predictability and transparency of mutual fund costs
TORONTO, Sept. 25, 2014 /CNW/ - Sun Life Global Investments (Canada) Inc. ("Sun Life Global Investments") today announced a proposal to change the way expenses are charged to its mutual funds that are structured as trusts (the "Funds") by paying certain operating expenses and, in return, charging a fixed-rate administration fee in respect of each series of the Funds. The Sun Life Global Investments mutual funds structured as classes of a mutual fund corporation already pay fixed-rate administration fees.
"A fixed-rate administration fee provides our customers with a simplified approach to managing their investments by improving transparency and ensuring that certain fees are fixed," said Rick Headrick, President, Sun Life Global Investments.
Each Fund currently pays its own operating expenses. If the proposal is approved by unitholders, on or about January 1, 2015, Sun Life Global Investments will begin paying certain operating expenses of the Funds in return for a new fixed-rate administration fee paid by each Fund to Sun Life Global Investments. In fixing a large portion of the operating expenses at a certain percentage, investors will be protected from potential increases in these operating expenses.
Sun Life Global Investments referred the proposal to introduce fixed-rate administration fees to the Independent Review Committee ("IRC") of the Funds. The IRC considered the proposal and determined, subject to certain conditions, that the proposal would achieve a fair and reasonable result for the Funds.
If the proposal is approved by unitholders, effective on or about January 1, 2015, the operating expenses payable by Sun Life Global Investments will include, but are not limited to, accounting, audit and legal fees, bank and interest charges, safekeeping and custodial fees, administrative and systems costs, costs of reports to investors, prospectuses and other disclosure documents, regulatory filing fees (including any regulatory fees and expenses payable by Sun Life Global Investments in connection with acting as manager of the Funds) and trustee fees for registered plans.
Each Fund will continue to pay certain operating costs including borrowing costs, costs in connection with portfolio transactions, fees and expenses payable to or in connection with the Funds' IRC, taxes payable by the Funds, and the costs of complying with any new regulatory or legal requirement imposed on the Funds commencing after September 25, 2014.
Unitholders of the Funds will receive meeting materials in late-October 2014 detailing the fixed-rate administration fee proposal and will be asked to approve the proposal at special meetings to be held on or about November 19, 2014, as required by securities regulations. More information about the change will be available in the amendment to the simplified prospectuses for the Funds to be filed in connection with these changes. These documents will be available at www.sedar.com and www.sunlifeglobalinvestments.com.
About Sun Life Global Investments (Canada) Inc.
Sun Life Global Investments (Canada) Inc. brings together the strength of one of Canada's most trusted names in financial services with some of the best asset managers from around the world. With a focus on risk management, our rigorous selection and monitoring process provides access to leading asset managers who use insight and innovation to manage high quality investment solutions for Canadian investors. Sun Life Global Investments (Canada) Inc. is a member of the Sun Life Financial group of companies. For more information, visit www.sunlifeglobalinvestments.com.
About Sun Life Financial
Sun Life Financial is a leading international financial services organization providing a diverse range of protection and wealth accumulation products and services to individuals and corporate customers. Sun Life Financial and its partners have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of June 30, 2014, the Sun Life Financial group of companies had total assets under management of $684 billion. For more information please visit www.sunlife.com.
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.
Note to Editors: All figures in Canadian dollars.
SOURCE Sun Life Global Investments (Canada) Inc.