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 Global Dividend Private Pool

Fund commentary | Q4 2020

Download PDF

Opinions and commentary by KBI Global Investments.

The fourth quarter of 2020 was a strong one as global equity markets continued the bullish behavior that kicked off back in March. The strong performance over the quarter spurred from optimism from COVID-19 vaccine breakthroughs in November, further extensions to monetary stimulus programmes, Central bank guidance indicating negative real interest rates are likely to persist through 2021 and growing belief that additional fiscal stimulus will be added to the mix over the next business cycle.

The rally was consistent with a more risk-on environment where higher beta stocks within more cyclical industries such as energy, financials and materials performed best. All cyclically sensitive areas of the market outperformed. Emerging markets (MSCI Emerging Markets Index) outperformed developed; Europe outperformed U.S.; Small cap outperformed large cap; rising bond yields; and rising commodity prices.  

KBI believes it is not sustainable for unprofitable companies to continue to outperform profitable ones, and anticipates leadership may come through from higher quality more profitable names across a broader range of industry groups. Additionally, the portfolio manager believes there is a distinct difference between companies that are generating strong cash flows and are cheap, versus companies that are just cheap. KBI believes good quality companies, which are purchased at the right price and respect the covenants with their shareholders, have the potential to outperform over time. The portfolio manager analyzes companies’ dividend patterns to understand their financial management, durability and sustainability of profits. The Fund continues to hold a portfolio of companies the portfolio manager believes have strong earnings and attractive valuation levels.

Sun Life Global Dividend Private Pool Monthly snapshot:

Series A Series F

Views expressed are those of KBI Global Investors, sub-advisor to select Sun Life mutual funds for which SLGI Asset Management Inc. acts as portfolio manager. 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, 2021. SLGI Asset Management Inc. is a member of the Sun Life group of companies. All rights reserved.