Section 10 Private Client program
10.2 Private Client management fees
When the market value of FEL and F class units in eligible segregated funds and O class units is equal to or more than the minimum for the Private Client program, you will receive a reduced management fee for those units. We calculate management fee reductions daily. A different rate of management fee reduction applies according to each tier and the rate is applied to the assets within a particular tier only. The table below sets out the management fee reduction rates.
Private Client units will automatically receive the management fee reduction as long as the market value of all eligible units remains at or above the minimum required. These units will not receive the management fee reduction while the market value is below the minimum.
FEL and F class units
For FEL and F class units we apply the management fee reduction monthly by allocating additional units to your contract. The additional units do not affect your guarantees. For information on the management fees see the fund facts.
O class units
For O class units we collect the management fee, plus applicable taxes, monthly directly from your O class units in each guarantee series proportionately from each fund. The redemption of units to pay the management fee does not affect your guarantees.
For information on the management fees see the fund facts.
If we terminate your participation in the Private Client program, we may switch your O class units to the equivalent value of FEL units of the same fund within the same guarantee series without any sales charges.
Changes to the information folder | 3
Management fee reduction:
Effective until May 8, 2016
Daily total market value of Private Client units
Management fee reduction (within tier) Tier 1 – less than or equal to
$250,000 (contracts must still meet the $100,000 minimum market value)
0.05%
Tier 2 – greater than $250,000
to $500,000 0.10%
Tier 3 - greater than $500,000
to $1 million 0.20%
Tier 4 - greater than $1 million
to $3 million 0.30%
Tier 5 - greater than $3 million
to $5 million 0.35%
Tier 6 - greater than $5 million 0.40%
Effective May 9, 2016 this management fee
reduction table applies to all Private Client eligible units including units purchased before May 9, 2016.
Daily total market value of Private Client eligible units
Management fee reduction (within tier) Tier 1 – less than or equal to
$250,000 (contracts must still meet the $100,000 minimum market value)
0.05%
Tier 2 - greater than $250,000 to
$500,000 0.10%
Tier 3 - greater than $500,000 to
$1 million 0.20%
Tier 4 - greater than $1 million to
$3 million 0.25%
Tier 5 - greater than $3 million 0.30%
10.3 O class advisor service fee
When you purchase O class units we pay the FEL sales charge to your distributor. See section 5.1.1, Front-end load (FEL), for more information.
When you purchase O class units you agree to pay your distributor an advisor service fee. We collect this fee plus applicable taxes on your distributor’s behalf by redeeming O class units from your contract monthly proportionately from each fund.
The redemption of units to pay the fee does not affect your guarantees. You may negotiate the advisor service fee with your insurance advisor.
It must not be more than 1.00% annually, plus applicable taxes.
To change the advisor service fee we must receive written instructions agreed to by you and your insurance advisor.
Sun GuArAnTEEd InvESTMEnT Fund SOLuTIOnS AddEnduM
Sections 13, 13.1, 13.2 and 13.3 of the contract are replaced with the following:
Section 13 Private Client program
We may offer a Private Client program. If available, this program will provide you with a cost effective investment solution and may provide enhanced reporting and services.
The Private Client program is subject to our
administrative rules. We may discontinue or change all or part of the program, including any class of units offered on the program.
Contact your insurance advisor for more
information. For information on which segregated funds are available in the Private Client program see the fund facts.
13.1 Participating in the Private Client program
To enter the Private Client program your contract must have a minimum market value of $100,000 in Private Client eligible units.
Private Client eligible units include:
• O class units,
• Front end load (FEL) units in eligible segregated funds, and
• F class units in eligible segregated funds.
Additional segregated funds, sales charge options and fund classes may become eligible for the Private Client program, subject to our administrative rules.
We may increase the minimum market value for the Private Client program at any time. We may make an exception to this minimum based on the holdings in eligible products according to our administrative rules.
If at any time the market value of your Private Client eligible units falls below the minimum, we may terminate your participation in the program without notice.
13.2 Private Client management fees
When the market value of FEL and F class units in eligible segregated funds and O class units is equal to or more than the minimum for the Private Client program, you will receive a reduced management fee for those units. We calculate management fee reductions daily. A different rate of management fee reduction applies according to each tier and the rate is applied to the assets within a particular tier only. See section 10, Private Client program, in the information folder for more information.
Private Client units will automatically receive the management fee reduction as long as the market value of all eligible units remains at or above the minimum required. These units will not receive the management fee reduction while the market value is below the minimum.
FEL and F class units
For FEL and F class units we apply the management fee reduction monthly by allocating additional units to your contract. The additional units do not affect your guarantees. For information on the management fees see the fund facts.
O class units
For O class units we collect the management fee, plus applicable taxes, monthly directly from your O class units in each guarantee series proportionately from each fund. The redemption of units to pay the management fee does not affect your guarantees.
For information on the management fees see the fund facts.
If we terminate your participation in the Private Client program, we may switch your O class units to the equivalent value of FEL units of the same fund within the same guarantee series without any sales charges.
4 | Changes to the contract
13.3 O class advisor service fee
When you purchase O class units we pay the FEL sales charge to your distributor. See section 5.1.1, Front-end load (FEL), in your information folder for more information.
When you purchase O class units you agree to pay your distributor an advisor service fee. We collect this fee plus applicable taxes on your distributor’s behalf by redeeming O class units from your contract monthly proportionately from each fund.
The redemption of units to pay the fee does not affect your guarantees.
You may negotiate the advisor service fee with your insurance advisor. It must not be more than 1.00%
annually, plus applicable taxes.
To change the advisor service fee we must receive written instructions agreed to by you and your insurance advisor.
Changes to the contract | 5
Sun GuArAnTEEd InvESTMEnT Fund SOLuTIOnS AddEnduM
Changes to the fund facts
The following changes apply to the fund facts:
Pages 202, 203 and 204 - Information specific to Private Client program - E class, have been removed and no longer apply.
The following pages have been replaced with the attached pages of the same number:
• pages 5 and 6 – Fund availability in Investment Series & Estate Series,
• page 199 – Information specific to Private Client program – O class, and
• pages 205 and 206 – ratios & supplementary data – management fees.
6 | Changes to the fund facts
Fund availability in Investment Series & Estate Series
Investment Series Estate Series
FEL, LL, DSC F class
Eligible
Private Client O class FEL, LL, DSC F class
Eligible
Private Clientfor O class
Sun GIF Solutions CI Cambridge Canadian Asset Allocation ✔ ✔
Sun GIF Solutions CI Cambridge Canadian Equity ✔ ✔
Sun GIF Solutions CI Cambridge Global Equity ✔ ✔
Sun GIF Solutions CI Signature Diversified Yield II ✔ ✔
Sun GIF Solutions CI Signature High Income ✔ ✔
Sun GIF Solutions CI Signature Income & Growth ✔ ✔
Sun GIF Solutions Daily Interest ✔ ✔
Sun GIF Solutions Dollar Cost Average Daily Interest ✔ ✔
Sun GIF Solutions Fidelity Floating Rate High Income ✔ ✔
Sun GIF Solutions Fidelity Income Allocation ✔ ✔
Sun GIF Solutions Fidelity Monthly Income ✔ ✔
Sun GIF Solutions Fidelity NorthStar® ✔
Sun GIF Solutions Fidelity True North® ✔ ✔
Sun GIF Solutions Fiera Global Equity ✔ ✔
Sun GIF Solutions Fiera US Equity ✔
Sun GIF Solutions Franklin World Growth ✔
Sun GIF Solutions PH&N Short Term Bond and Mortgage ✔ ✔
Sun GIF Solutions RBC Global High Yield Bond ✔ ✔
Sun GIF Solutions RBC North American Value ✔ ✔
Sun GIF Solutions Sun Life Beutel Goodman Canadian Bond ✔ ✔ ✔ ✔ ✔ ✔
Sun GIF Solutions Sun Life BlackRock Canadian Balanced ✔ ✔ ✔ ✔ ✔ ✔
Sun GIF Solutions Sun Life BlackRock Canadian
Composite Equity ✔ ✔ ✔ ✔ ✔ ✔
Sun GIF Solutions Sun Life BlackRock Canadian Equity ✔ ✔ ✔ ✔ ✔ ✔
Sun GIF Solutions Sun Life BlackRock Canadian
Universe Bond ✔ ✔ ✔ ✔ ✔ ✔
Sun GIF Solutions Sun Life Dynamic American Value ✔ ✔ ✔
Sun GIF Solutions Sun Life Dynamic Equity Income ✔ ✔ ✔ ✔ ✔ ✔
Sun GIF Solutions Sun Life Dynamic Strategic Yield ✔ ✔ ✔ ✔ ✔ ✔
Sun GIF Solutions Sun Life Franklin Bissett Canadian Equity ✔ ✔ ✔ ✔ ✔ ✔
Sun GIF Solutions Sun Life Granite Balanced ✔ ✔ ✔ ✔ ✔ ✔
Sun GIF Solutions Sun Life Granite Balanced Growth ✔ ✔ ✔ ✔ ✔ ✔
Sun GIF Solutions Sun Life Granite Conservative ✔ ✔ ✔ ✔ ✔ ✔
Sun GIF Solutions Sun Life Granite Enhanced Income ✔ ✔ ✔ ✔ ✔ ✔
Sun GIF Solutions Sun Life Granite Growth ✔ ✔ ✔ ✔ ✔ ✔
Sun GIF Solutions Sun Life Granite Income ✔ ✔ ✔ ✔ ✔ ✔
Sun GIF Solutions Sun Life Granite Moderate ✔ ✔ ✔ ✔ ✔ ✔
Sun GIF Solutions Sun Life MFS Canadian Bond ✔ ✔ ✔ ✔ ✔ ✔
Sun GIF Solutions Sun Life MFS Canadian Equity Growth ✔ ✔ ✔ ✔ ✔ ✔
Sun GIF Solutions Sun Life MFS Canadian Equity Value ✔ ✔ ✔ ✔ ✔ ✔
Sun GIF Solutions Sun Life MFS Dividend Income ✔ ✔ ✔ ✔ ✔ ✔
Sun GIF Solutions Sun Life MFS Global Growth ✔ ✔ ✔ ✔ ✔ ✔
Page 5 of 215
for
Changes to the fund facts | 7
Sun GuArAnTEEd InvESTMEnT Fund SOLuTIOnS AddEnduM
Fund availability in Investment Series & Estate Series (continued)
Estate Series FEL, LL, DSC
F class
Investment Series Eligible
for O class FEL, LL, DSC F class
Eligible
Private Clientfor O class
Sun GIF Solutions Sun Life MFS Global Total Return ✔ ✔ ✔ ✔ ✔
Sun GIF Solutions Sun Life MFS Global Value ✔ ✔ ✔ ✔ ✔
Sun GIF Solutions Sun Life MFS International Growth ✔ ✔ ✔ ✔ ✔
Sun GIF Solutions Sun Life MFS International Value ✔ ✔ ✔ ✔ ✔
Sun GIF Solutions Sun Life MFS Monthly Income ✔ ✔ ✔ ✔ ✔
Sun GIF Solutions Sun Life MFS US Equity ✔ ✔ ✔ ✔ ✔
Sun GIF Solutions Sun Life MFS US Growth ✔ ✔ ✔ ✔ ✔
Sun GIF Solutions Sun Life MFS US Value ✔ ✔ ✔ ✔ ✔
Sun GIF Solutions Sun Life Money Market ✔ ✔ ✔ ✔ ✔
Sun GIF Solutions Sun Life NWQ Flexible Income ✔ ✔ ✔ ✔ ✔
Sun GIF Solutions Sun Life Schroder Emerging Markets ✔ ✔
Sun GIF Solutions Sun Life Sentry Conservative Balanced ✔ ✔ ✔ ✔ ✔
Sun GIF Solutions Sun Life Sentry Global Mid Cap ✔ ✔
Sun GIF Solutions Sun Life Sentry Infrastructure ✔ ✔ ✔ ✔ ✔
Sun GIF Solutions Sun Life Sentry Value ✔ ✔ ✔ ✔ ✔
Sun GIF Solutions Sun Life Sionna Canadian Small Cap Equity ✔ ✔ ✔ ✔ ✔
Sun GIF Solutions Sun Life Templeton Global Bond ✔ ✔
Sun GIF Solutions Sun Life Trimark Canadian ✔
Private Client
✔ ✔ ✔ ✔
Sun GIF Solutions TD Canadian Bond ✔ ✔
Sun GIF Solutions TD Dividend Income ✔ ✔
Sun GIF Solutions TD Real Return Bond ✔ ✔
Sun GIF Solutions Trimark ✔
Page 6 of 215
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8 | Changes to the fund facts
Changes to the fund facts | 9
Sun GuArAnTEEd InvESTMEnT Fund SOLuTIOnS AddEnduM
Ratios & supplementary data – management fees
Fund name FEL/LL/DSC (%) F class (%) O class (%)*
Sun GIF Solutions CI Cambridge Canadian Asset Allocation 2.00 1.00
Sun GIF Solutions CI Cambridge Canadian Equity 2.00 1.00
Sun GIF Solutions CI Cambridge Global Equity 2.00 1.00
Sun GIF Solutions CI Signature Diversified Yield II 2.00 1.00
Sun GIF Solutions CI Signature High Income 2.00 1.00
Sun GIF Solutions CI Signature Income & Growth 2.00 1.00
Sun GIF Solutions Daily Interest 0.60 0.40
Sun GIF Solutions Dollar Cost Average Daily Interest 0.60 0.40
Sun GIF Solutions Estate Settlement 0.60 0.40
Sun GIF Solutions Fidelity Floating Rate High Income 1.50 1.00
Sun GIF Solutions Fidelity Income Allocation 2.00 1.00
Sun GIF Solutions Fidelity Monthly Income 2.00 1.00
Sun GIF Solutions Fidelity NorthStar® 2.00 1.00
Sun GIF Solutions Fidelity True North® 2.00 1.00
Sun GIF Solutions Fiera Global Equity 2.00 1.00
Sun GIF Solutions Fiera US Equity 2.00 1.00
Sun GIF Solutions Franklin World Growth 2.00 1.00
Sun GIF Solutions PH&N Short Term Bond and Mortgage 1.50 1.00
Sun GIF Solutions RBC Global High Yield Bond 1.50 1.00
Sun GIF Solutions RBC North American Value 2.00 1.00
Sun GIF Solutions Strategic Income 1.50 1.00
Sun GIF Solutions Sun Life Beutel Goodman Canadian Bond 1.50 1.00 1.00
Sun GIF Solutions Sun Life BlackRock Canadian Balanced 2.00 1.00 1.00
Sun GIF Solutions Sun Life BlackRock Canadian Composite Equity 2.00 1.00 1.00
Sun GIF Solutions Sun Life BlackRock Canadian Equity 2.00 1.00 1.00
Sun GIF Solutions Sun Life BlackRock Canadian Universe Bond 1.50 1.00 1.00
Sun GIF Solutions Sun Life Dynamic American Value 2.00 1.00 1.00
Sun GIF Solutions Sun Life Dynamic Equity Income 2.00 1.00 1.00
Sun GIF Solutions Sun Life Dynamic Strategic Yield 2.00 1.00 1.00
Sun GIF Solutions Sun Life Franklin Bissett Canadian Equity 2.00 1.00 1.00
Sun GIF Solutions Sun Life Granite Balanced 2.00 1.00 1.00
Sun GIF Solutions Sun Life Granite Balanced Growth 2.00 1.00 1.00
Sun GIF Solutions Sun Life Granite Conservative 2.00 1.00 1.00
Sun GIF Solutions Sun Life Granite Enhanced Income 2.00 1.00 1.00
Sun GIF Solutions Sun Life Granite Growth 2.00 1.00 1.00
Sun GIF Solutions Sun Life Granite Income 2.00 1.00 1.00
Sun GIF Solutions Sun Life Granite Moderate 2.00 1.00 1.00
Sun GIF Solutions Sun Life MFS Canadian Bond 1.50 1.00 1.00
Sun GIF Solutions Sun Life MFS Canadian Equity Growth 2.00 1.00 1.00
Sun GIF Solutions Sun Life MFS Canadian Equity Value 2.00 1.00 1.00
Sun GIF Solutions Sun Life MFS Dividend Income 2.00 1.00 1.00
Sun GIF Solutions Sun Life MFS Global Growth 2.00 1.00 1.00
Sun GIF Solutions Sun Life MFS Global Total Return 2.00 1.00 1.00
Page 205 of 215
10 | Changes to the fund facts
Ratios & supplementary data – management fees (continued)
Fund name FEL/LL/DSC (%) F class (%) O class (%)*
Sun GIF Solutions Sun Life MFS Global Value 2.00 1.00 1.00
Sun GIF Solutions Sun Life MFS International Growth 2.00 1.00 1.00
Sun GIF Solutions Sun Life MFS International Value 2.00 1.00 1.00
Sun GIF Solutions Sun Life MFS Monthly Income 2.00 1.00 1.00
Sun GIF Solutions Sun Life MFS US Equity 2.00 1.00 1.00
Sun GIF Solutions Sun Life MFS US Growth 2.00 1.00 1.00
Sun GIF Solutions Sun Life MFS US Value 2.00 1.00 1.00
Sun GIF Solutions Sun Life Money Market 0.50 0.30 0.30
Sun GIF Solutions Sun Life NWQ Flexible Income 1.50 1.00 1.00
Sun GIF Solutions Sun Life Schroder Emerging Markets 2.00 1.00 1.00
Sun GIF Solutions Sun Life Sentry Conservative Balanced 2.00 1.00 1.00
Sun GIF Solutions Sun Life Sentry Global Mid Cap 2.00 1.00 1.00
Sun GIF Solutions Sun Life Sentry Infrastructure 2.00 1.00 1.00
Sun GIF Solutions Sun Life Sentry Value 2.00 1.00 1.00
Sun GIF Solutions Sun Life Sionna Canadian Small Cap Equity 2.00 1.00 1.00
Sun GIF Solutions Sun Life Templeton Global Bond 1.50 1.00 1.00
Sun GIF Solutions Sun Life Trimark Canadian 2.00 1.00 1.00
Sun GIF Solutions TD Canadian Bond 1.50 1.00
Sun GIF Solutions TD Dividend Income 2.00 1.00
Sun GIF Solutions TD Real Return Bond 1.50 1.00
Sun GIF Solutions Trimark 2.00 1.00
* FEL, F class and O class managment fees shown here are the maximum annual management fees that may be charged to you. These fees may be reduced by a managment fee reduction based on the daily total market value of Private Client eligible units in your contract.
Page 206 of 215
Changes to the fund facts | 11
Sun Guaranteed Investment Fund Solutions
Information folder and individual variable annuity contract issued by Sun Life Assurance Company of Canada
May 2015
This document contains the Sun Guaranteed Investment Fund (GIF) Solutions information folder and contract provisions.
The segregated fund information folder is published by the Sun Life Assurance Company of Canada (“Sun Life”) for information purposes only and is not an insurance contract. Sun Life is the issuer of the Sun GIF Solutions Individual Variable Annuity contract and the guarantor of the guarantee provisions.
2 | Key facts
Key facts
Sun Guaranteed Investment Fund Solutions
This summary provides a brief description of the basic things you should know before you apply for a Sun Guaranteed Investment Fund Solutions (Sun GIF Solutions) contract.
This summary is not part of your contract. A full description of all the features and how they work is in the contract, information folder, fund facts and any supplement that applies. Please review these documents and discuss any questions you have with your insurance advisor.
For a glossary of terms we use, see the glossary at the back of the contract.
What am I purchasing?
You are purchasing a Sun GIF Solutions individual variable annuity contract, also called a segregated fund contract. It is issued by Sun Life Assurance Company of Canada (Sun Life).
It gives you a choice of investments and guarantees.
We may offer different guarantee series that provide different types of guarantees such as maturity guarantees, death benefit guarantees and income guarantees. You may choose the guaranteed benefits you wish to receive from the contract by allocating your deposits to the available guarantee series.
under the contract you may purchase units in any or all of the guarantee series that are available. Purchasing units of a segregated fund means allocating your deposit to units of a fund. You do not own units or any part of the underlying assets of a fund.
Information about the Sun GIF Solutions contract and the Investment Series is contained in this information folder and contract. If you purchase one of the available guarantee series other than Investment Series, which is fully described in this information folder and contract, you will receive the supplement for that series. The supplement provides additional information about that series. Supplements have provisions that will form part of your contract.
You may designate a beneficiary for your contract.
You may ask that your contract be a registered plan. Some of the available registered plan types are rrSP, rrIF and TFSA.
The choice you make will have tax implications. Tax rules will apply to the contract while you are alive and on your death. Speak to your insurance advisor to learn more.
The value of your contract can go up or down and is subject to guarantees.
What guarantees are available?
The contract gives you maturity and death benefit guarantees for each guarantee series, that apply when you reach a certain age or when you die, whichever happens first.
For the Investment Series the benefits are:
• Maturity guarantee: protects the value of the premiums you paid on the contract maturity date (most often age 100). The maturity guarantee is 75% of all premiums you paid, less a reduction for withdrawals.
• Death benefit guarantee: protects the value of the premiums you paid on death. The death benefit guarantee is 75% of all premiums you paid, less a reduction for withdrawals.
Any withdrawals you make will reduce the guarantees.
For full details see section 3, Guaranteed benefits.
different guarantee series may be available that offer income guarantees or enhanced death benefits. These benefits are calculated separately for each series.
on the contract maturity date, annuity payments will begin.
You may also ask to begin annuity payments at an earlier date. Any request you make must be in writing.
What investments are available?
You may choose from a number of segregated funds.
The funds are described in the fund facts. read the fund facts for more information about the funds available for each guarantee series. Sun Life does not guarantee the performance of funds. Before you select a fund carefully consider your risk tolerance.
Key facts | 3
How much will this cost?
The cost depends on the guarantee series, funds, and sales charge options you choose.
Sales charge options
depending on the sales charge option you choose, we may either deduct a sales commission from your premium, or apply a deferred sales charge for certain withdrawals.
depending on the sales charge option you choose, we may either deduct a sales commission from your premium, or apply a deferred sales charge for certain withdrawals.