Sun Life Real Assets Private Pool

Fund commentary | Q4 2023

Global equity markets rallied in Q4 2023 on expectations of interest rate cuts in 2024. In this environment, real assets rallied as well. 

In terms of relative positioning, the Sun Life Real Assets Private Pool (the “Fund”) maintains a tilt towards natural resources. The Fund is modestly underweight global Infrastructure and global real estate investment trusts (REITs). 

The infrastructure component of the Fund favours assets with high revenue certainty and profitability and lower volatility. The strategy remains biased towards Europe in reference to more favorable valuations and does not invest in energy. Stock selection drove returns with positions in U.S. railroads and European toll roads also contributed to performance.

The real estate component of the Fund favours higher quality real estate and generally looks to invest in property types with real cash flow growth, strong balance sheets and skilled management teams. Stock selection remains the primary driver of the Fund’s returns. The strategy continues to favour apartments, manufactured homes, self-storage and industrial properties. 

The resources component focuses on clean energy, water, and agriculture. Resource scarcity is a fundamental underpinning of the strategy. The Fund invests in companies that aim to provide efficient food, energy and water delivery and climate change solutions. Overweight positions in industrials as well the underweight in traditional energy contributed to performance.


Fund performance

Compound returns %1 Since inception 5 Year 3 Year 1 Year Q4
Sun Life Real Assets Private Pool - Series A


6.9 4.9 6.3 10.6
Sun Life Real Assets Private Pool - Series F


8.1 6.1 7.5 10.9
Benchmark2 5.3 6.5 7.9 4.4 7.5

¹Returns for periods longer than one year are annualized. Data as of of December 31, 2023. 

Fund inception date: February 2, 2015.

2Blended benchmark comprised of: 35% FTSE EPRA/NAREIT Developed Real Estate Index (C$),35% S&P Global Infrastructure Index (C$), 30% S&P Global Natural Resource Index (C$).

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 subject to change and 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.

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.