Sun Life and Excel merge funds, announce other changes

Sun Life Global Investments Canada and Excel Funds Management have merged mutual funds and introduced changes to fees and investment objectives in an effort to streamline their product offering, Sun Life said in a release.

The changes come after Sun Life announced in September that it was acquiring Excel.

Read: SLGI acquiring Excel Funds

In advance of the meetings for the various changes, details will be set out in a management information circular that will be provided to security holders and available on SEDAR, the release said. The Independent Review Committee for each of the affected funds will consider the mergers, and the assessment will be included in the management information circular.

A number of funds will be merged around June 15 if they receive approval from unitholders (at a May 25 vote) and from regulators. All costs and expenses associated with the mergers proposed below will be borne by Sun Life Global Investments and Excel, the release said.

Terminating funds	Continuing funds
Excel Money Market Fund	Sun Life Money Market Fund
Excel Emerging Markets Fund	Sun Life Schroder Emerging Markets Fund
Excel Chindia Fund	Sun Life Schroder Emerging Markets Fund
Sun Life MFS Canadian Equity Fund	Sun Life MFS Canadian Equity Growth Fund
Sun Life MFS Canadian Equity Value Fund	Sun Life MFS Canadian Equity Growth Fund

The terminating funds will be closed to new investors when trading closes on March 7. In the event that a merger isn’t approved, that fund will be terminated as of June 15.

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Fixed administration fees

Sun Life and Excel are also introducing fixed-rate administration fees on certain Excel funds for June 18, with a unitholder vote scheduled for May 25. The proposed fees are outlined below:

Fund name	Series	Proposed fixed-rate administration fee
Excel China Fund	A, IS	0.25%
	F	0.20%
	I	0.05%
Excel Emerging Markets Balanced Fund	A, DB	0.20%
	F	0.15%
Excel High Income Fund	A, DB, IS	0.20%
	F	0.15%
	I	0.03%
Excel India Balanced Fund	A	0.20%
	F	0.15%
Excel New India Leaders Fund	A	0.25%
	F	0.20%
Excel India Fund	A, DB, IS	0.25%
	F	0.20%
	I	0.05%

Changes to Sun Life MFS Canadian Equity Class

Effective June 18, Sun Life MFS Canadian Equity Class will change its investment objectives to invest primarily in Sun Life MFS Canadian Equity Growth Fund pending security holder approval from a May 25 vote. The fund’s name and strategies will also be changed to align with Sun Life MFS Canadian Equity Growth Fund.

Changes to low load sales charge redemption schedule

Effective March 29, Sun Life Global Investments will adopt Excel’s low load sales charge redemption schedule as outlined below:

Low load sales charge redemption schedule
If redeemed during:	Client pays:
	Current:	As of March 29:
Year 1	3.00%	2.50%
Year 2	2.50%	2.00%
Year 3	2.00%	2.00%
Year 3+	NA	NA

Purchase option changes

Effective June 13, Sun Life Global Investments will add a U.S. dollar purchase option to a number of Sun Life funds. Series A, F and O for the following funds will offer a USD purchase option:

• Sun Life MFS Global Total Return Fund
• Sun Life MFS Global Growth Fund
• Sun Life MFS International Growth Fund
• Sun Life MFS U.S. Growth Fund
• Sun Life MFS U.S. Value Fund
• Sun Life Schroder Emerging Markets Fund

The new purchase option converts the Canadian dollar net asset value per unit to a U.S. dollar net asset value per unit by taking the current day’s CAD to USD exchange rate. The USD purchase option doesn’t act as a currency hedge or protect against losses caused by changes in the exchange rates between Canadian and U.S. dollars. Full details of the USD purchase option will be included in the simplified prospectus for each of the relevant funds.

Sun Life Schroder Emerging Markets Fund

Effective June 15, Sun Life Global Investments will add Series IS and DB to Sun Life Schroder Emerging Markets Fund, and on June 18, the fund will be renamed Sun Life Excel Emerging Markets Fund. Schroders will remain the sub-advisor.

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