Growth Class)
Fund details
Fund type Asset Allocation Portfolio Securities offered Series A, Series AT5,
Series AT8, Series E, Series EF, Series F and Series O shares of a class of a mutual fund corporation Start date Series A: August 1, 2013
Series AT5: August 1, 2013 Series AT8: August 1, 2013 Series E: April 1, 2014 Series EF: August 10, 2015 Series F: August 1, 2013
Portfolio manager Sun Life Global Investments Canada Toronto, Ontario What does the fund invest in?
Investment objectives
The Fund’s investment objective is to seek capital appreciation and income, with a bias towards capital appreciation, through exposure to primarily fixed income and equity securities by investing primarily in units of Sun Life Granite Balanced Growth Portfolio or its successor fund (the “Portfolio”).
Where the portfolio manager considers it appropriate or necessary, the Fund may invest in securities, which may include securities of other mutual funds (including exchange-traded funds), identical or substantially similar to those in which the Portfolio invests.
The investment objective of the Fund can only be changed with the approval of a majority of the shareholders at a meeting called for such purpose.
Investment strategies
The portfolio manager currently intends to achieve the Fund’s investment objectives by investing all, or substantially all, of the assets of the Fund in the
Portfolio, a mutual fund that is managed and advised by us. The Portfolio’s investment objective is to 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.
In pursuing the Portfolio’s investment objectives, the portfolio manager of the Portfolio:
• invests primarily in equity mutual funds and, to a lesser extent, fixed income mutual funds and typically invests between 60% and 80% of the Portfolio s assets in equity mutual funds and between 20% and 40% of the Portfolio’s assets in fixed income mutual funds;
• uses an asset allocation strategy to determine the balance between the portion of the Portfolio invested in equity mutual funds and the portion of the Portfolio invested in fixed income mutual funds;
• may review and adjust the asset allocation strategy, in its sole discretion, depending on economic conditions and relative value of equity and fixed income securities;
• may invest up to 100% of the Portfolio’s assets in other mutual funds (including exchange-traded funds) which may be managed by the Manager, its affiliates and/or other investment fund managers, and/or directly in equity and/or fixed income securities;
• typically selects equity mutual funds with exposure to Canadian equity securities, U.S.
equity securities and international equity securities;
• typically selects fixed income mutual funds with exposure to Canadian debt instruments and global debt instruments;
Sun Life Granite Balanced Growth Class (formerly Sun Life Managed Balanced Growth Class) (continued)
• monitors and periodically rebalances the Portfolio’s assets based on the portfolio manager’s assessment of market conditions in light of the Portfolio’s investment objective;
and
• may, in its sole discretion, change the Portfolio’s allocation to each asset class in order to meet the investment objective of the Portfolio and change the other mutual funds in which the Portfolio invests from time to time.
The Fund and the Portfolio may each hold all or a portion of its assets in cash, money market instruments, bonds or other debt securities to meet subscription or redemption requests, or for defensive or other purposes.
The Fund and the Portfolio may use derivatives to hedge some or all of its foreign currency exposure, or to hedge against potential loss. The Fund and the Portfolio may also use derivatives for other hedging and non-hedging purposes, such as to gain exposure to certain securities or asset classes without investing directly in such securities or asset classes, to generate income, or to provide protection for the Fund’s and the Portfolio’s portfolio. The Fund and the Portfolio will only use derivatives as permitted by Canadian securities regulatory authorities.
For a description of some of the types of derivatives and the risks that may be associated with the use of derivatives, please see the discussion under Derivative risk beginning on page 7.
The Fund and the Portfolio may enter into securities lending, repurchase and reverse repurchase transactions to earn additional returns. For a description of these transactions and how the Fund manages the risks associated with these transactions, please see the discussion under Repurchase and reverse repurchase transactions and securities lending risk on page 11.
What are the risks of investing in the fund?
The Fund invests in the Portfolio and so the risks of investing in the Fund include both the risks of investing in the Fund and the risks of investing in the Portfolio. The Fund will be exposed to the following risks:
• Asset-backed and mortgage-backed securities risk
• Capital depletion risk (for Series AT5 and Series AT8 investors only)
• Class risk
• Concentration risk
• Credit risk
• Currency risk
• Derivative risk
• Emerging markets risk
• Equity risk
• Foreign investment risk
• Geographic concentration risk
• Government securities risk
• Interest rate risk
• Large transaction risk
• Liquidity risk
• Market risk
• Passive management risk
• Regulatory risk
• Repurchase and reverse repurchase transactions and securities lending risk
• Series risk
• Small company risk
• Specialization risk
• Tracking risk
• Transaction costs risk
• Underlying fund risk
For a detailed description of these mutual fund risks, see What are the specific risks of investing in a mutual fund? beginning on page 5.
We have classified this Fund’s risk level as medium.
Please see Fund risk classification on page 54 for a description of the methodology we use to classify this Fund’s risk level.
Who should invest in this fund?
This Fund may be suitable for investors who:
• seek capital appreciation and income, with a bias towards capital appreciation;
• seek diversification through a broad range of asset classes, geographies and investment styles;
• are medium to long term investors;
• are comfortable with medium investment risk; and
• desire the flexibility to switch to another class of Sun Life Global Investments Corporate Class Inc. without realizing capital gains.
Sun Life Granite Balanced Growth Class (formerly Sun Life Managed Balanced Growth Class) (continued) Series AT5 and Series AT8 shares may be suitable
for investors holding shares outside of a registered plan and wishing to receive monthly distributions.
Distribution policy
The Fund pays any ordinary dividends in December and any capital gains dividends within 60 days after December 31 each year. Distributions are automatically reinvested in additional shares of the Fund, unless shares are held outside a registered plan and you provide us a written request that you wish to receive them in cash.
For Series AT5 and Series AT8 shares, the Fund intends to make monthly distributions based on a target annualized rate of 5% and 8% of the NAV per share, respectively, at the end of the prior year. The monthly distributions on Series AT5 and Series AT8 share shares are comprised of capital.
The monthly distributions on Series AT5 and Series AT8 shares are not intended to reflect the Fund’s investment performance and should not be confused with “yield” or “income”. The distribution rate on these series may be greater than the return on the Fund’s investments. If the cash distributions to you are greater than the net increase in the value of your investment, the distributions will erode the value of your original investment.
We reserve the right to adjust the amount of the monthly distribution if we consider it appropriate, without notice. There can be no assurance that Series AT5 or Series AT8 shares will make any distributions in any particular month.
Fund expenses indirectly borne by investors Expenses payable over:
1 year 3 years 5 years 10 years
Series A $24 $75 $131 $298
Series E $22 $71 $134 $282
Series AT5 $24 $77 $135 $307
Series AT8 $24 $76 $134 $304
Series F $12 $39 $69 $156
Series O $2 $7 $13 $30
This information is not available for Series EF because that series is new and therefore expenses are not yet known.