TORONTO, Oct. 7, 2020 /CNW/ - SLGI Asset Management Inc. ("SLGI Asset Management") announced today that it will be restructuring the Sun Life Excel India Fund (the "Fund"). These changes will commence immediately and be completed on or about December 31, 2020.
Presently, and as set out in the Fund's Simplified Prospectus, the Fund seeks to achieve its investment objective through a three-tiered fund structure. The Fund invests in units of the India Excel (Mauritius) Fund (the "Mauritius Trust"), which then invests in units of the India Excel (Offshore) Fund (the "Indian Trust"). The Indian Trust invests directly in Indian equity securities.
The Indian Trust must be wound up to comply with changes to Indian regulations and guidance provided by the Securities and Exchange Board of India. After considering the best interests of the Fund and the Fund's investors, SLGI Asset Management has decided to wind up the Mauritius Trust in addition to winding up the Indian Trust. Following the restructuring, the Fund will invest directly in Indian equity securities.
Distribution to be paid
As part of the restructuring, a special distribution will be paid on October 8, 2020 to unitholders of record of the Fund as of today (October 7, 2020). The amount of this distribution is an estimate of the capital gains and foreign income that will be realized by the Fund once the restructuring is complete. The dollar amount of the distribution per unit to be paid for each series of the Fund is shown below.
Series |
$ Distribution |
A |
$19.352413 |
F |
$8.216619 |
DB |
$2.749562 |
IS |
$3.231318 |
O |
$5.545951 |
The Fund may be required to make an additional distribution as of December 15, 2020, if further capital gains or foreign income are earned by the Fund in excess of the special distribution.
If the special distribution (determined based on estimates) exceeds the actual capital gains and foreign income earned by the Fund as of December 15, 2020, the difference will be characterized as a return of capital for investors.
In December, SLGI Asset Management will provide additional guidance on the Fund's final distribution amount for the year, including any additional distribution estimates.
Subject to market fluctuations and the completion of the wind up process for the Mauritius Trust and the Indian Trust, the restructuring is expected to generate a capital loss within the Fund in 2021 that is equal to a portion of the foreign income distributed to investors on October 8, 2020. This capital loss can be used by the Fund to reduce the amount of capital gains that are required to be distributed to investors in 2021 and thereafter.
Those who hold units of the Fund in a registered plan (RRSP, RRIF, RESP or TFSA) are generally not subject to, nor is their registered plan subject to, tax on distributions paid by the Fund on those units. Those who hold units of the Fund in a non-registered account must include in their income, for tax purposes, the taxable portion of all distributions paid to them by the Fund on those units.
Questions regarding how these changes may affect an individual's investments should be addressed to their tax or financial advisor.
Lower management fees
SLGI Asset Management has also made the decision to reduce the annual management fees payable by the Fund on Series A, Series F, Series O and Series DB units effective November 1, 2020, as detailed in the table below.
Series |
Current annual |
Annual management fees |
Series A |
2.05% |
1.85% |
Series F |
1.05% |
0.85% |
Series O |
1.05% |
0.85% |
Series DB |
1.30% |
1.10% |
New Fund sub-advisor
As part of the restructuring, Aditya Birla Sun Life Asset Management Company Pte. Ltd. will be appointed as the sub-advisor of the Fund effective on or about October 7, 2020. This will allow the Fund to retain the current portfolio management team in India following the wind up of the Indian Trust.
About SLGI Asset Management Inc.
SLGI Asset Management Inc. is a subsidiary of Sun Life Financial Inc. It offers Canadians a diverse lineup of mutual funds and innovative portfolio solutions, empowering them to pursue their financial goals at every life stage. We bring together the strength of one of Canada's most trusted names in financial services with some of the best asset managers from around the world to deliver a truly global investment platform. As of June 30, 2020, SLGI Asset Management Inc. manages $29.32 billion on behalf of institutional and retail investors from coast-to-coast and is a member of the Sun Life group of companies. For more information visit www.sunlifeglobalinvestments.com or connect with us on Twitter @SLGI_Canada.
About Sun Life
Sun Life is a leading international financial services organization providing insurance, wealth and asset management solutions to individual and corporate Clients. Sun Life has operations in a number of markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of June 30, 2020, Sun Life had total assets under management of $1,122 billion. For more information, please visit www.sunlife.com.
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.
Forward-Looking Statements
Certain statements in this news release may be considered to be forward-looking statements within the meaning of applicable Canadian securities legislation. Information about risk factors relating to the mutual funds managed by SLGI Asset Management Inc. can be found in the current prospectus of the mutual funds discussed in this press release and for Sun Life can be found in the annual information form of Sun Life Financial Inc., for the year ended December 31, 2019 under the heading "Risk Factors" and other regulatory filings filed with or furnished to Canadian securities regulators available at www.sedar.com.
Note to editors: All figures in Canadian dollars
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
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.
This document is published by SLGI Asset Management Inc. This document is provided for information purposes only and is not intended to provide specific individual financial, investment, tax, accounting or legal advice and should not be relied upon in that regard and does not constitute a specific offer to buy and/or sell securities. 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.
Media Relations Contact:
Alexandra Locke
Manager, Corporate Communications
T. 416-408-7357
[email protected]
SOURCE Sun Life Global Investments (Canada) Inc.
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