Solving the Know Your Product (KYP) puzzle 

Providing value to your Clients

Hear from Oricia Smith, President, SLGI Asset Management Inc. & SVP, Investment Solutions, Sun Life Canada on how we can help support your KYP needs.

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What you told us

65%

Of advisors believe they need to be moderately or significantly prepared for client focused reforms1

60%

Of advisors believe their work will be moderately or significantly impacted1

29%

Of advisors said their research process will need to change1

65%

Of advisors believe the requirements are reasonable1

What are the new KYP requirements?

Client Focused Reforms require you to be able to convey complete knowledge and a deep understanding about every investment product you recommend. 

This entails:

  1. Enhanced product knowledge; assessing the securities offered to Clients, including the structure, features, initial and ongoing costs, and the financial impact of those costs and a comparable solutions analysis 
  2. Formally approving all securities made available to your Clients
  3. Constantly assessing recommended securities for significant changes and demonstrated awareness of material changes that may affect suitability and more

We're here to help you:

Ideas

KYP investment review considerations

  • Address needed changes

    Investigate and address any material changes to funds in a timely matter.

  • Research

    and understand the product you are recommending to Clients.

  • Compare

    all funds used to a reasonable variety of options.

  • Document

    and provide evidence of all research and comparisons.

  • Maintain

    a fund research file, reviewing funds regularly and updating the file at least annually.

Education

Four things to keep in mind as you meet with your Clients:

Articulate your

value

Understand the solution you're recommending

Ensure suitability for your Clients

Explain the

product

Putting it all together

No one asset manager does everything right. That's why we offer a broad lineup of mutual funds, sub-advised by carefully chosen domestic and international investment managers. It doesn’t stop there. Each of our sub-advisors is monitored on an ongoing basis; this provides an extra layer of due diligence for you and your Clients.

  • Enhanced sub-advisor selection

    • Through Sun Life's relationships with investment companies around the world, established over decades, we have access and awareness that few investment companies can match.
    • The sub-advisors we choose go through intense scrutiny on multiple factors before a finalist is selected.

    See our sub-advisors

  • Ongoing monitoring of sub-advisors

    Beyond the selection process, we monitor each sub-advisor across a broad range of criteria, including, but not limited to:

    • Environmental, Social and Governance (ESG) integration
    • Quantitative analysis
    • Quarterly sub-advisor due diligence
    • In-depth annual questionnaires*
    • Ongoing monthly reporting

  • Key sub-advisor considerations

    • Clearly defined and repeatable process
    • Lengthy tenure in each asset class
    • Demonstrated success 
    • Reputable firm and team
    • Relationship can be terminated

*Our sub-advisors must clearly articulate what their ESG approach is and all are subject to ongoing monitoring from our embedded ESG resources.

Solutions to consider

Key product ideas:

Theme Product idea 1 Product idea 2
Opportunities in less efficient markets Sun Life U.S. Mid Cap Growth Fund Sun Life Schroder Emerging Markets Fund
Inflation Solutions Sun Life Real Assets Private Investment Pool Sun Life KBI Sustainable Infrastructure Private Pool
Difficult to do it yourself asset classes Sun Life Wellington Opportunistic Fixed Income Private Investment Pool  
Cost effective, actively managed ETF portfolios* Sun Life Tactical ETF Portfolios  
Decumulation ideas Sun Life Granite Target Income Portfolios  
Actively managed long-term track record Sun Life MFS International Opportunities Fund Sun Life MFS U.S. Growth Fund
Business simplification with portfolio management sophistication Sun Life Granite Managed Solutions Sun Life MFS Global Total Return Fund
Insurance license required
Lifetime guaranteed income - longevity protection Sun GIF Solutions Income Series Sun Life Payout Annuities

The product ideas referenced above are a small selection from Sun Life Global Investment’s product suite

Sun Life Managed Solutions

May reduce compliance workload

Another way to potentially reduce your compliance workload is to consider using a single-ticket managed solution.

  1. Investment suitability is more important than ever
  2. A single-ticket solution may reduce KYP complexity
  3. Offload the stress and guesswork that goes with fund or ETF selection
  4. Benefits of tactical management, saving you time and effort
  5. Select best-in-class investment managers

Watch to hear more about how our Sun Life Granite Managed Solutions may help with KYP.

 

Featuring: Chhad Aul, MSC, CFA

Chief Investment Officer & Head of Multi-Asset Solutions SLGI Asset Management inc.

 

Learn more: 

Sun Life Granite Managed Solutions

Sun Life Tactical ETF Portfolios

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Advisor resources 

  • Knowing us as part of your KYP due diligence
  • eBook
  • Sun Life MFS Funds KYP package
  • Sun Life Fixed Income KYP package
  • Sun Life Managed Solutions KYP package
  • Five ways Sun Life Granite Managed Solutions may help with KYP
  • Enhanced fund analysis available - contact your Wealth Sales Team
  • KYP checklist

Related articles

Morningstar: Client focused reforms  Published: Feb. 2 2021

Know your product challenges and opportunities  Published: May 28, 2021

Advisors, let us help you solve the KYP puzzle

Not contracted with us? Please fill out the form to receive the Advisor resources.

*Mandatory fields

1Source: Globe & Mail/Morningstar, Aug. 10, 2021. How prepared are advisors for the client-focused reforms?

The Sun Life Tactical ETF Portfolios are mutual fund trusts that invest in a portfolio of ETFs and mutual funds and are actively managed by SLGI Asset Management Inc.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

This website is provided for information purposes only and is not intended to provide specific individual financial, investment, tax or legal advice. Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent of any mutual funds managed by SLGI Asset Management Inc. or any of the sub-advisors to those funds. These views are not to be considered as investment advice nor should they be considered a recommendation to buy or sell.

Information contained on this website has been compiled from sources believed to be reliable, but no representation or warranty, express or implied, is made with respect to its timeliness or accuracy. This website may contain forward-looking statements about the economy, and markets; their future performance, strategies or prospects. Forward-looking statements are not guarantees of future performance and are speculative in nature and cannot be relied upon.

Sun Life Global Investments is a trade name of SLGI Asset Management Inc., Sun Life Assurance Company of Canada and Sun Life Financial Trust Inc.

SLGI Asset Management Inc. is the investment manager of the Sun Life Mutual Funds, Sun Life Granite Managed Solutions and Sun Life Private Investment Pools. Sun Life Assurance Company of Canada is the issuer of guaranteed insurance contracts, including Accumulation Annuities (Insurance GICs), Payout Annuities, and Individual Variable Insurance Contracts (Sun Life GIFs).

© SLGI Asset Management Inc., Sun Life Assurance Company of Canada, and their licensors, 2021. SLGI Asset Management Inc. and Sun Life Assurance Company of Canada are members of the Sun Life group of companies. All rights reserved.