Sun Life Financial Corp. Monday announced the launch of the Granite series of target date funds.

While similar to traditional target date funds, these funds offer investors a multi-manager investment approach.

Each Granite target date fund is made up of 11 to 13 underlying funds chosen for their demonstrated superior performance over the long-term as well as their proven expertise in their asset class or investment style.

Also Monday, Sun Life reported that the combined assets of target date funds available to group plans administered by the company are now more than $1 billion.

Target date funds focus on a goal, such as retirement, and have asset mixes that change throughout the life of the fund. As the fund’s maturity date approaches, the investor’s exposure to risk automatically decreases.

“Due to their simplicity, target date funds are fast becoming a standard feature in many workplace retirement savings plans,” says Tom Reid, senior vice president, group retirement services, Sun Life Financial Canada. “During the last two years, 55% of our new defined contribution plans have included target date funds. Our investment team helps create cost-effective solutions to give Canadians the tools they need to make their investment decisions.”

To meet growing employee demand, Sun Life has expanded its target date offerings by adding solutions from investment managers such as McLean Budden Limited and Barclays Global Investors.

Sun Life Financial introduced the first lifecycle target date funds with a guarantee for employer-sponsored group retirement savings plans in Canada in April 2005. The Milestone Funds feature a guaranteed unit value at maturity. Investors who hold these funds to maturity will receive a unit value based on the highest month-end unit value during the life of the fund.

IE