The Sun Life Milestone Funds can help provide a powerful shield against the impact of market volatility. These target date funds offer the opportunity for growth potential, while at the same time offering downside protection if markets drop. The Milestone Funds have a unique Guaranteed Value1 that can provide peace of mind for investors.
Essentially, every time the fund’s net asset value per unit, or “NAV”, reaches a new high at month end, the fund locks in a new guaranteed NAV per unit (the “Guaranteed Value or GV”)—provided the investor holds the fund to maturity.
Benefits of Sun Life Milestone Funds
It’s simple. Just select your goal date.
Just ask “when do I need the money?” and choose the Sun Life Milestone Fund with the maturity date (2025, 2030 or 2035) that is closest. The “Maturity Date” is when the Fund is scheduled to terminate or mature. When the fund reaches maturity (June 30 of the maturity year), funds will be transferred into the Sun Life Money Market Fund.
Dynamic asset mix
The Sun Life Milestone Funds are managed by the SLGI Asset Management Inc. Portfolio Management Team. The team ensures the asset mix is adjusted to become more conservative as the maturity date approaches, so investors don’t have to worry about their portfolios being too risky as their investment milestone approaches.
"Buy low, sell high”—a simple concept that is often difficult to follow, especially in turbulent markets. Unfortunately, when emotions come into play, investors may be more likely to do just the opposite.
The Sun Life Milestone Funds offer a Guaranteed Value that can provide greater confidence that you will reach your financial goals. And, it not only discourages panic selling when markets fall, but it can encourage buying at low points.
When held to maturity, Sun Life Milestone Funds will pay the highest of the following three Values:
- $10.00 per unit (the “NAV” per unit on the start date of the Fund), or
- The highest month-end NAV per unit, during the period between the fund’s start date until the Fund’s Maturity Date, or
- The NAV per unit on the Maturity Date of the Fund.
Essentially, every time the NAV reaches a new high at month end, the investor locks in a new guaranteed NAV—as long as they hold the fund to maturity.
There is a benefit to staying invested
Knowing that holding a Milestone Fund to maturity means investors will receive the Guaranteed Value (even if the NAV falls below the GV), investors may be less likely to try to redeem their investment knowing—and more inclined to stay invested for the long term. As a result, investors can benefit from any long-term growth in the markets. In addition, investors may have more incentive to buy in at lower prices to reap the full benefit of the Guaranteed Value.
Explore our Milestone funds:
SLGI Asset Management Inc. offers three Sun Life Milestone Funds:
*Subject to applicable fees.
1The Guaranteed Value is only available on the scheduled Maturity Date of the fund. Investors who redeem units of a Milestone Fund before the scheduled Maturity Date of their Milestone Fund will receive the current NAV per unit (less redemption fees, if any), which may be less than the Guaranteed Value. The Guaranteed Value of each unit of a Milestone Fund is calculated during the term of the Milestone Fund based on the greater of $10.00 per unit and the then highest month end NAV per unit
2Sun Life Milestone 2025 Fund, DSC option (SUN209), is closed to new purchases as of July 1, 2018. LSC will close in 2022 for the 2025 fund.
We have structured each Sun Life Milestone Fund so that it will have sufficient assets to pay the Guaranteed Value per unit on its respective maturity date. If the net asset value per unit on the maturity date of a Sun Life Milestone Fund is less than the Guaranteed Value per unit, then Sun Life Assurance Company of Canada, as sub-advisor to the Sun Life Milestone Funds, ("Sun Life", or the "guarantor") has agreed to pay the shortfall to the Sun Life Milestone Fund. Any shortfall payment is subject to the financial health and creditworthiness of Sun Life. The respective maturity dates for the Sun Life Milestone Funds is June 30 of the year in the corresponding fund's name. The maturity date for a Sun Life Milestone Fund may be accelerated in certain circumstances, in which case an accelerated Guaranteed Value will be calculated. In such a case, the applicable Sun Life Milestone Fund will pay the greater of the net asset value per unit on the accelerated maturity date and the net present value per unit of the Guaranteed Value. If you redeem your securities of the Sun Life Milestone Funds prior to their respective maturity dates, your redemption will be processed at the current net asset value per security, less any applicable redemption fees, and you will not benefit from the Guaranteed Value at maturity. Additional information, including specific risks associated with the Sun Life Milestone Funds, can be found in the prospectus.
See current Guaranteed Values for Sun Life Milestone Funds.
Learn more about the Sun Life Milestone Funds guarantee.
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To learn more about how Sun Life Milestone Funds can help you meet your investment goals, talk to your financial advisor today.