As of July 20, 2020, Sun Life Global Investments (Canada) Inc. changed its name to SLGI Asset Management Inc. It will take some time to update our websites, materials and forms and until that is complete, all references to Sun Life Global Investments (Canada) Inc. will mean SLGI Asset Management Inc. We’ve also brought together Sun Life mutual fund, segregated fund, annuity and guaranteed investment product businesses under the collective brand of Sun Life Global Investments.

Sun Life Excel India Fund

Fund commentary | Q3 2020

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In the quarter, macroeconomic indicators in India improved significantly. India achieved a trade surplus as exports increased at a substantially higher pace than imports. Moreover, strong foreign direct investment and foreign portfolio investments over the quarter resulted in strong performance for the Indian Rupee (INR), which performed better than most emerging market currencies Q3. India’s rural economy experienced strong growth, as rural areas were less impacted by COVID-19 lockdowns and benefitted from a good monsoon season, as the majority of the rural economy is agriculture-based. 

Domestic consumption also started to pick up in India. Fuel consumption is back to last year’s average level as the country starts to reopen. In addition, as India approaches its festive season, consumption is expected to further improve. Power consumption is also rebounding as factories and other manufacturing facilities resume operations. Automobile sales are also increasing, especially two-wheeler sales, as people seek to purchase personal vehicles and avoid using public transit during the ongoing pandemic.

COVID-19 cases in India are higher than most other countries, however, the number of new cases daily may have peaked and the fatality rate has dropped since the early part of the pandemic. India’s health care system is also better equipped to manage isolating COVID-19 patients and to perform contact tracing than it was in March and April. While India continues to make progress in controlling the spread of the pandemic, the high number of cases continues to be a concern for the markets.

Fund performance

Compound returns %1 Since inception2 10 year 7 year 5 year 3 year 1 year Q3
Sun Life Excel India Fund - Series A 9.9 4.6 13.3 4.2 -0.1 -4.6 11.8
Sun Life Excel India Fund - Series F 8.3 5.8 14.6 5.3 1.1 -3.5 12.2
MSCI India Index 9.4 4.4 11.7 5.1 4.4 1.4 12.7

1Returns for periods longer than one year are annualized. Data as of September 30, 2020.

2Partial calendar year. Returns are for the period from the fund’s inception date of Series A: April 14, 1998 to December 31, 1998 and Series F: January 4, 2005 to December 31, 2005.

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. These views are not to be considered as investment advice nor should they be considered a recommendation to buy or sell. This commentary is provided for information purposes only and is not intended to provide specific individual financial, investment, tax or legal advice. Information contained in this commentary 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 commentary may contain forward-looking statements about the economy and markets, their future performance, strategies or prospects or events and are subject to uncertainties that could cause actual results to differ materially from those expressed or implied in such statements. Forward-looking statements are not guarantees of future performance and are speculative in nature and cannot be relied upon.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Investors should read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.  The indicated rates of return are the historical annual compounded total returns including changes in security value and reinvestment of all distributions and do not take into account sales, redemption, distribution or other 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.

While Series A and Series F securities have the same reference portfolio, any difference in performance between these series is due primarily to differences in management fees and operating fees. The management fee for Series A securities also includes the trailing commission, while Series F securities does not. Series A securities of the fund are available for purchase to all investors, while Series F securities are only available to investors in an eligible fee-based or wrap program with their registered dealer. Investors in Series F securities may pay a separate fee-based account fee that is negotiated with and payable to their registered dealer.

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.

© SLGI Asset Management Inc. and its licensors, 2020. SLGI Asset Management Inc. is a member of the Sun Life group of companies. All rights reserved.