Sun Life Assurance Co. of Canada today announced the launch of SunWise, the next generation of segregated funds.

The SunWise Individual Variable Annuity Contract gives clients access to a wide range of brand name funds and index funds managed by industry-leading mutual fund companies including Spectrum, AGF, Fidelity, AIC, AIM, C.I., McLean Budden, Merrill Lynch and Sun Life.

SunWise offers clients a number of innovative features, which focus on providing growth and value to the client. At the same time, clients have the power to choose one of three guarantee options, which are designed to protect their money at the maturity of the contract (10 years after deposit) or at death.

The Full Guarantee option guarantees 100% of the client’s deposits at maturity, and 100% at death. The Basic Guarantee option guarantees 75% of the client’s deposits at maturity, and 75% at death, with a lower MER. A Combined Guarantee is also available, providing 75% at maturity and 100% at death. These options enable clients to customize their guarantees as their investment horizon or risk profile changes.

SunWise is also the first segregated fund in Canada to offer funds built on a corporate class structure. These funds can help investors defer taxes on capital gains in their non-registered investments.

The optional Earnings Enhancement Benefit feature is unique, helping clients preserve the value for their beneficiaries by awarding an additional lump sum of up to 40% of the total investment earnings, up to a maximum of 40% of the total premium deposits, payable at death. This EEB increases effective investment returns and helps to offset expenses such as deferred capital gains taxes on the seg fund investment.

“SunWise is an innovative seg fund product because clients don’t have to sacrifice growth, flexibility and choice, to gain protection,” said Claudio Bufi, retail marketing, Sun Life. “This seg fund works hard to maximize growth by offering top performing funds, including all asset categories and investment styles, a choice of guarantees and a few Canadian firsts, such as the Life-Cycle Tax-Advantaged portfolios and an optional Earnings Enhancement Benefit.”