SunFlex Retirement Income - Sun Life Financial Retirement Income – Performance-Linked Investment Options Booklet 2 ... SunFlex Bundle Funds ... SunFlex Sun Life MFS Global Equity

SunFlex Retirement IncomePERFORMANCE-LINKED INVESTMENT OPTIONS BOOKLET

Life’s brighter under the sun

SunFlex Retirement Income – Performance-Linked Investment Options Booklet 2

Investment options

Sun Life Granite Managed SolutionsSun Life Granite Conservative Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Sun Life Granite Moderate Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Sun Life Granite Balanced Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Sun Life Granite Balanced Growth Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Sun Life Granite Growth Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Balanced FundsSun Life BlackRock Canadian Balanced Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Fidelity Canadian Asset Allocation Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 0Mackenzie Ivy Canadian Balanced Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11Trimark Income Growth Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

SunFlex Bundle Funds

SunFlex Sun Life MFS Canadian Equity Bundle . . . . . . . . . . . . . . . . . . . . . . . . 15SunFlex CI Signature Select Canadian Bundle . . . . . . . . . . . . . . . . . . . . . . . . . 17SunFlex CI Canadian Investment Bundle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19SunFlex Invesco Select Canadian Bundle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21SunFlex RBC Canadian Dividend Bundle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23SunFlex Sun Life MFS U .S . Equity Bundle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25SunFlex Sun Life MFS Global Equity Bundle . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

SunFlex Fund Codes

SunFlex Fund Codes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29

Contents

3

SunFlex Retirement Income

This guide gives you detailed information about each of the fund options available to you in the SunFlex Retirement Income policy. It gives you the details you need to know before choosing which funds are right for you.

Your SunFlex Retirement Income bonus income is linked to the performance of the fund options you choose. We track the unit values of the funds you choose, including all distributions to calculate your bonus income. This gives you the ability to participate in the market without the risk of being invested in the market. With SunFlex Retirement Income, you do not own the actual units of the mutual funds you choose to link your performance to; we use the fund returns in the bonus income calculation.

SunFlex Retirement Income offers you a range of performance-linked investments so you can select the funds that best meet your income goals and risk tolerance.

You can choose to link your income to one or more of the available fund options. You choose the amount you wish to allocate to any one fund option, and you may also change your fund allocations once per calendar month.

Your advisor will help you choose the funds which best match your income goals and risk tolerance.

To calculate your returns, we use the change in their values. We use Series A or a similar retail class of unit values to calculate your fund performance. Series A units are reported net of management fees, operating expenses, and any distributions from the fund. If no Series A or similar retail class of unit is available to use, we will use the institutional class and reduce the rate of return of the investment by an amount which, based on industry standards, we would expect to be charged if the Series A or retail class of units were available. Sun Life Financial does not currently deduct any additional fees from the unit values before calculating your returns. Before changing or increasing a management fee, we will provide written notice to you 60 days in advance and it will not exceed a maximum of 0.75% per year.

4

Sun Life Granite Conservative Portfolio

INVESTMENT OBJECTIVE

The investment objective is to seek income and capital appreciation for the portfolio with a bias towards income, by investing primarily in fixed income mutual funds and, to a lesser extent, equity mutual funds.

ASSET CLASS

Global Fixed Income Balanced

MUTUAL FUND SERIES A MER

1.93% as of December 31, 2016

PORTFOLIO MANAGER

Sun Life Global Investments (Canada) Inc.

Linking your income to the returns of th is fund may be suitable i f you:

seek diversification through a broad range of asset classes, geographies and investment styles;

are comfortable with an investment which is 60 - 80% in fixed income and 20 - 40% in equity; and

are comfortable with low investment risk.

Fund per formance of Ser ies A units as of December 31 , 2016

1 year 2.20%

3 year 4.51%

5 year N/A

10 year N/A

Since inception January 17, 2012

4.96%

Period Fund returns

Sun Life Granite Managed Solutions

RISK PROFILE : LOW

5

Sun Life Granite Moderate Portfolio


The investment objective is to seek income and capital appreciation by investing primarily in a mix of fixed income and equity mutual funds.

ASSET CLASS

Global Neutral Balanced



PORTFOLIO MANAGER





are comfortable with low to medium investment risk.


1 year 3.18%

3 year 5.75%

5 year N/A

10 year N/A


7.01%

Period Fund returns


RISK PROFILE : LOW TO MEDIUM

6

Sun Life Granite Balanced Portfolio


The investment objective is to seek capital appreciation and income, with a small bias towards capital appreciation, by investing primarily in a mix of equity and fixed income mutual funds.

ASSET CLASS

Global Neutral Balanced



PORTFOLIO MANAGER





are comfortable with low to medium investment risk.


1 year 3.73%

3 year 6.55%

5 year N/A

10 year N/A


8.00%

Period Fund returns



7

Sun Life Granite Balanced Growth Portfolio

INVESTMENT OBJECTIVETo seek capital appreciation and income, with a bias towards capital appreciation, by investing primarily in equity mutual funds and, to a lesser extent, fixed income mutual funds.

ASSET CLASSGlobal Equity Balanced

MUTUAL FUND SERIES A MER2.29% as of December 31, 2016

PORTFOLIO MANAGERSun Life Global Investments (Canada) Inc.




are comfortable with medium investment risk.


1 year 3.88%

3 year 7.19%

5 year N/A

10 year N/A


8.97%

Period Fund returns


RISK PROFILE : MEDIUM

8

Sun Life Granite Growth Portfolio


The investment objective is to seek capital appreciation by investing primarily in equity mutual funds and, to a lesser extent, fixed income mutual funds.

ASSET CLASS

Global Equity Balanced



PORTFOLIO MANAGER



RISK PROFILE : MEDIUM Linking your income to the returns of th is fund may be suitable i f you:





1 year 4.32%

3 year 7.81%

5 year N/A

10 year N/A


9.82%

Period Fund returns

9

Sun Life BlackRock Canadian Balanced Fund


The investment objective is to seek a combination of income and growth by investing primarily in Canadian equity securities and Canadian debt instruments directly or indirectly through mutual funds and exchange-traded funds that invest in such securities.

ASSET CLASS

Canadian Equity Balanced



PORTFOLIO MANAGER



seek a Canadian balanced fund with broad diversification;

seek a moderate degree of growth and income; and

are comfortable with low-to-medium investment risk.


1 year 8.02%

3 year 4.40%

5 year 5.48%

10 year N/A

Since inception April 15, 2011

4.21%

Period Fund returns

Balanced Funds


10

Fidelity Canadian Asset Allocation Fund


The fund aims to achieve high total investment return. The fund uses an asset allocation approach. It invests primarily in a mix of Canadian equity securities, fixed income securities and money market instruments. The fund may invest up to 30% of its assets in foreign issuers.

ASSET CLASS


MUTUAL FUND SERIES B MER


PORTFOLIO MANAGER

Fidelity Investments Canada ULC


seek a Canadian balanced fund with broad diversification;

seek a moderate degree of growth; and

are comfortable with low-to-medium investment risk.

Fund per formance of Ser ies B units as of December 31 , 2016

1 year 7.07%

3 year 5.27%

5 year 5.67%

10 year 3.90%

Since inception December 30, 1994

8.01%

Period Fund returns

Balanced Funds


11

Mackenzie Ivy Canadian Balanced Fund


The investment objective is to pursue long-term capital growth through a prudent balance of current income and capital appreciation. The fund invests mainly in equity securities of large capitalization Canadian companies and fixed income securities, such as Canadian government securities and corporate debt obligations. The portfolio manager has the ability to move from 0% to 100% between equities and fixed income securities. However, the portfolio manager tends not to make dramatic changes to the asset mix of the fund, and the portfolio is generally balanced, except in response to unusual market conditions.

ASSET CLASS




PORTFOLIO MANAGER

Mackenzie Financial Corporation


want to link your performance returns to a Canadian balance fund; and

are comfortable with low to medium risk.


1 year 14.77%

3 year 8.41%

5 year 9.30%

10 year 4.32%

Since inception October 13, 1992

6.81%

Period Fund returns

Balanced Funds


12

Trimark Income Growth Fund


The investment objective is to generate capital growth and income over the long term. The fund invests primarily in Canadian equities, fixed-income securities of Canadian issuers, both government and corporate, and foreign equities and fixed-income securities.

ASSET CLASS




PORTFOLIO MANAGER

Invesco Canada Ltd.


seek capital growth and income over the medium to long term;

want a diversified Canadian balance investment; and

are comfortable with low to medium risk.


1 year 10.15%

3 year 6.11%

5 year 9.19%

10 year 3.46%

Since inception October 22, 1999

6.16%

Period Fund returns

Balanced Funds


13

SunFlex Bundles

The SunFlex Retirement Income bundles (SunFlex Bundle Funds) represent one or

more equity funds with a Canadian bond fund to create a portfolio investment option

designed to give exposure to strong equity funds while balancing risk with exposure to

a Canadian bond fund. The target asset allocation is rebalanced monthly to preserve

its target fund allocation.


The SunFlex Bundle Funds allocate 70% in one or more equity funds and 30% in the Sun Life Multi-Strategy Bond Fund. Each fund’s contribution to the overall monthly bundle return is based on the proportionate weight of that fund within the bundle.

The management expense ratio (MER) for each of the bundles is based upon the proportionate weight of each fund in the bundle. For example, the MER of a bundle with a 70% Canadian equity fund weighting and a 30% weighting in the Canadian bond fund will be 70% of the Canadian equity fund MER and 30% of the Canadian bond fund MER.

The returns generated by the bundles will be proportionately weighted and will be based upon the bundle’s fund exposure.

The SunFlex Bundle Funds have no past performance, as they were created for this product. The past performances for each of the funds to which the bundles are exposed are included in the following pages. The approximate past performance for each of the bundles on the following pages is roughly the proportionate weight allocation of each fund to the bundle’s whole.

15

SunFlex Sun Life MFS Canadian Equity Bundle


The investment objective of the bundle is to blend the returns of the Sun Life MFS Canadian Equity Growth Fund and the Sun Life Multi-Strategy Bond Fund.

The investment objectives of the funds used within the bundle and their allocations are as follows:

Allocation Fund name Investment objective

70%Sun Life MFS Canadian Equity Growth Fund

To seek long-term capital growth primarily by investing in Canadian growth equity securities. The Fund may invest in global equity securities or other mutual funds.

30%Sun Life Multi-Strategy Bond Fund

To earn a high rate of income by investing primarily in fixed-income securities of Canadian government and corporate issuers.




ASSET CLASS


PROPORTIONATELY WEIGHTED MER


PORTFOLIO MANAGER



seek Canadian equity exposure;



The performance reported below, provided as of December 31 , 2016, is for each of the funds represented in the bundle .

1 year 3 year 5 year 10 year Since inception Inception date

Sun Life MFS Canadian Equity Growth Fund

8.41% 6.91% 9.92% N/A 8.90% April 1, 2009

Sun Life Multi-Strategy Bond Fund

0.43% 1.74% 0.69% N/A 1.15% September 1, 2011

17

SunFlex CI Signature Select Canadian Bundle


The investment objective of the bundle is to blend the returns of the CI Signature Select Canadian Fund and the Sun Life Multi-Strategy Bond Fund.



70%CI Signature Select Canadian Fund

To seek capital appreciation over the long-term coupled with dividend income. It invests primarily in common shares and convertible securities of Canadian companies and preferred shares that pay regular income. The Fund’s investments are diversified across industry sectors.






ASSET CLASS




PORTFOLIO MANAGER

CI Investments Inc. Sun Life Global Investments (Canada) Inc.







CI Signature Select Canadian Fund

13.12% 7.19% 9.69% 4.57% 9.37% May 13, 1998


0.43% 1.74% 0.69% N/A 1.15% September 1, 2011

19

SunFlex CI Canadian Investment Bundle


The investment objective of the bundle is to blend the returns of the CI Canadian Investment Fund and the Sun Life Multi-Strategy Bond Fund.



70%CI Canadian Investment Fund

To achieve a long-term capital growth by investing primarily in shares of major Canadian corporations.






ASSET CLASS




PORTFOLIO MANAGER

CI Investments Inc. Sun Life Global Investments (Canada) Inc.







CI Canadian Investment Fund 13.04% 5.01% 9.30% 3.78% 9.30%* November 16, 1932


0.43% 1.74% 0.69% N/A 1.15% September 1, 2011

* Figure shown represents actual performance from January 29, 1977.

21

SunFlex Invesco Select Canadian Bundle


The investment objective of the bundle is to blend the returns of the Invesco Select Canadian Equity Fund and the Sun Life Multi-Strategy Bond Fund.



70%Invesco Select Canadian Equity Fund

To provide strong capital growth with a high degree of reliability over the long term. The fund invests primarily in common shares of Canadian companies.






ASSET CLASS




PORTFOLIO MANAGER

Invesco Canada Ltd. Sun Life Global Investments (Canada) Inc.







Invesco Select Canadian Equity Fund

15.32% -3.62% 3.72% 0.24% 6.17% September 23, 1992


0.43% 1.74% 0.69% N/A 1.15% September 1, 2011

23

SunFlex RBC Canadian Dividend Bundle


The investment objective of the bundle is to blend the returns of the RBC Canadian Dividend Fund and the Sun Life Multi-Strategy Bond Fund.



70%RBC Canadian Dividend Fund

To achieve long-term total returns consisting of regular dividend income, which benefits from the preferential tax treatment given to dividend income and modest long-term capital growth. The fund invests primarily in common and preferred shares of major Canadian companies with above average dividend yields.






ASSET CLASS




PORTFOLIO MANAGER

RBC Global Asset Management Inc. Sun Life Global Investments (Canada) Inc.







RBC Canadian Dividend Fund 19.42% 7.50% 10.06% 5.36% 10.66% January 6, 1993


0.43% 1.74% 0.69% N/A 1.15% September 1, 2011

25

SunFlex Sun Life MFS U .S . Equity Bundle


The investment objective of the bundle is to blend the returns of the Sun Life MFS U.S. Growth Fund, the Sun Life MFS U.S. Value Fund, the Sun Life Multi-Strategy Bond Fund and the Sun Life BlackRock Canadian Composite Equity Fund.



30%Sun Life MFS U.S. Growth Fund

To seek capital appreciation by investing primarily in equity securities of issuers located in the United States that are considered to have above-average earnings growth potential compared to other companies.

30%Sun Life MFS U.S. Value Fund

To seek capital appreciation by investing primarily in equity securities of companies with large market capitalization located in the United States that are considered to be undervalued compared to their perceived worth.



10%Sun Life BlackRock Canadian Composite Equity Fund

To seek long-term capital appreciation by replicating, to the extent possible, the performance, net of fees, of a broad and recognized Canadian equity market index (the “Index”). The fund invests directly in equity securities included in the Index and/or may achieve exposure to some or all of the Index by investing in exchange-traded funds, mutual funds or derivatives that are correlated to the performance of the Index.




ASSET CLASS



2.07%* as of December 31, 2016

PORTFOLIO MANAGER



seek U.S. equity exposure with a blend of value and growth characteristics; and



* The Sun Life BlackRock Canadian Composite Equity Fund is not available to retail investors. The management fee and operating expenses for this fund is equivalent (based on the industry standards) to the management fees and operating expenses which would be charged for Series A, or a similar retail series of units, if the Series A or retail series of units were available. The performance provided pertains to the I Series units. Your performance will be reduced by the management fee and operating expenses as described above.


Sun Life MFS U.S. Growth Fund

-2.89% 12.05% 17.54% N/A 15.13% October 1, 2010

Sun Life MFS U.S. Value Fund 7.77% 13.87% 18.28% N/A 15.19% October 1, 2010


0.43% 1.74% 0.69% N/A 1.15% September 1, 2011

Sun Life BlackRock Canadian Composite Equity Fund, I series units

21.02% 7.05% 8.24% N/A 4.83% April 15, 2011

27

SunFlex Sun Life MFS Global Equity Bundle


The investment objective of the bundle is to blend the returns of the Sun Life MFS Global Growth Fund, the Sun Life MFS Global Value Fund, the Sun Life Multi-Strategy Bond Fund and the Sun Life BlackRock Canadian Composite Equity Fund.



30%Sun Life MFS Global Growth Fund

To seek capital appreciation by investing primarily in equity securities of issuers located anywhere in the world that are considered to have above-average earnings growth potential compared to other issuers.

30%Sun Life MFS Global Value Fund

To seek capital appreciation by investing primarily in equity securities of issuers located anywhere in the world that are considered to be undervalued compared to their perceived worth.



10%Sun Life BlackRock Canadian Composite Equity Fund

To seek long-term capital appreciation by replicating, to the extent possible, the performance, net of fees, of a broad and recognized Canadian equity market index (the “Index”). The fund invests directly in equity securities included in the Index and/or may achieve exposure to some or all of the Index by investing in exchange-traded funds, mutual funds or derivatives that are correlated to the performance of the Index.




ASSET CLASS



2.07%* as of December 31, 2016

PORTFOLIO MANAGER



seek global equity exposure with a blend of value and growth characteristics; and



* The Sun Life BlackRock Canadian Composite Equity Fund is not available to retail investors. The management fee and operating expenses for this fund is equivalent (based on the industry standards) to the management fees and operating expenses which would be charged for Series A, or a similar retail series of units, if the Series A or retail series of units were available. The performance provided pertains to the I Series units. Your performance will be reduced by the management fee and operating expenses as described above.


Sun Life MFS Global Growth Fund

-0.20% 8.87% 13.62% N/A 10.92% October 1, 2010

Sun Life MFS Global Value Fund

2.58% 11.28% 15.88% N/A 13.43% October 1, 2010


0.43% 1.74% 0.69% N/A 1.15% September 1, 2011

Sun Life BlackRock Canadian Composite Equity Fund, I series units

21.02% 7.05% 8.24% N/A 4.83% April 15, 2011

29

Fund option codes

SunFlex Performance-Linked Investments

We have provided the fund codes for tracking purposes only. You do not own the actual units

of the mutual funds you choose to link your performance to. We track the unit values of the

funds you choose, including all distributions to calculate your bonus income. Nothing in the

materials at right should be construed as a solicitation to buy or sell mutual fund securities.

30

Fund name Fund code


Sun Life Granite Conservative Portfolio SUN 144

Sun Life Granite Moderate Portfolio SUN 146

Sun Life Granite Balanced Portfolio SUN 148

Sun Life Granite Balanced Growth Portfolio SUN 150

Sun Life Granite Growth Portfolio SUN 153

Balanced Funds

Sun Life BlackRock Canadian Balanced Fund SUN 116

Fidelity Canadian Asset Allocation Fund FID 281

Trimark Income Growth Fund AIM 6543

Mackenzie Ivy Canadian Balanced Fund MFC 082

Bundle funds

SunFlex Sun Life MFS Canadian Equity Bundle

Sun Life MFS Canadian Equity Growth Fund SUN 166

Sun Life Multi-Strategy Bond Fund SUN 122

SunFlex Sun Life MFS Global Equity Bundle

Sun Life MFS Global Growth Fund SUN 100

Sun Life MFS Global Value Fund SUN 101


Sun Life BlackRock Canadian Composite Equity Fund SUN 519

SunFlex Sun Life MFS U .S . Equity Bundle

Sun Life MFS U.S. Growth Fund SUN 105

Sun Life MFS U.S. Value Fund SUN 106


Sun Life BlackRock Canadian Composite Equity Fund SUN 519

SunFlex CI Signature Select Canadian Bundle

CI Signature Select Canadian Fund CIG 677


SunFlex CI Canadian Investment Bundle

CI Canadian Investment Fund CIG 7420


SunFlex Invesco Select Canadian Bundle

Invesco Select Canadian Equity Fund AIM 1583


SunFlex RBC Canadian Dividend Bundle

RBC Canadian Dividend Fund RBF 759


31

Risk profile Risk is the chance your selected funds may not perform as expected. In general, the more risk you accept, the higher your potential returns and the greater your potential losses.

Management fees Each funds pays a management fee to the fund management firm based on the net asset value (NAV) of each series of the fund, plus HST. The fee is accrued daily and paid monthly. This fee is incorporated into the daily NAV Sun Life Financial uses to track the performance-linked returns of the funds you select. Sun Life does not charge an additional management fee to the fund.

Operating expenses Each fund is responsible for paying all of its operating expenses, trading expenses, and any commodity or other taxes applicable to such expenses relating to the portfolio securities held by the fund. The operating expenses are incorporated into the daily NAV Sun Life Financial uses to track the performance-linked returns of the funds you select. Sun Life does not charge any additional operating expenses to the fund.

Proportionately weighted

The percentage a portion of a total value represents of the whole value.

Management expense ratio

(MER)

A variable measure of what it costs to operate the fund. MERs include all expenses of a fund, and include management fees, operating expenses and/or administration fees, and applicable taxes.

Important terminology


Notes

33

Notes

CONFIDENCEPEACE OF MIND

FLEXIBILITY

For more information and resources visit sunlife.ca | Call 1 877 SUN-LIFE/1 877 786 5433

Questions? We’re here to help.

SunFlex Retirement Income provides guaranteed income to help cover basic needs –

and the opportunity for bonus income to suit your retirement lifestyle. Your advisor can

tell you more about Money for Life™ and help you build and maintain your plan to enjoy

retirement. Learn more at sunlife.ca/sunflex.

Life’s brighter under the sunOn August 31, 2015, the word “Managed” was replaced by the word “Granite” in the name of each Sun Life Managed Granite Solution.SunFlex Retirement Income is issued by Sun Life Assurance Company of Canada, a member of the Sun Life Financial group of companies.© Sun Life Assurance Company of Canada, 2017.810-3889-Digital-10-17

Documents

SunFlex Retirement Income - Sun Life Financial Retirement Income – Performance-Linked Investment Options Booklet 2 ... SunFlex Bundle Funds ... SunFlex Sun Life MFS Global Equity