This chart illustrates that Sun Life MFS Diversified Income Fund invests in an optimized mix of six income generating asset classes.
The target mix is 45% in fixed income (with a max/min of 60%/40%) and 55% in equities (with a max/min) of 60%/40%
The Fund then makes disciplined tactical adjustments to the mix (+/- 5% to the underlying asset class strategies
The six asset classes and the target mix to them include: 17.5% U.S. High Yield Bonds, 17.5% Canadian Investment Grade Bonds, 10% Emerging Markets Debt, 10% Canadian Equities, 30% Global Dividend Paying Equities, and 15% Global Real Estate Investment Trusts (REITs)
There is a description for each of the six asset classes (to describe them). It says:
U.S. High Yield Bonds – Invests across the full spectrum of corporate high yield bonds
Canadian Investment Grade Bonds – A diversified portfolio of mainly Canadian dollar, investment grade corporate bonds and other credit-related fixed income
Emerging Markets Debt – A well diversified portfolio capturing broad opportunities in emerging markets debt through research-intensive analysis
Canadian Equities – Focuses on dividend-paying Canadian equities with total returns that are driven by dividends and capital growth potential
Global Dividend Paying Equities – Focuses on dividend-paying global equities with total returns that are driven by dividends and capital growth potential
Global Real Estate Investment Trusts – Emphasizes REITs with sustainable current income and durable cash flow to help drive capital growth