Toronto-based Sun Life Global Investments (Canada) Inc. is terminating Sun Life MFS Balanced Value Fund and Sun Life MFS Balanced Growth Fund and investors in those products will receive units of Sun Life Granite Balanced Portfolio, the continuing fund, on or about Aug. 26.
The terminating funds will be capped to new investors as of Tuesday while existing investors may continue to invest until Aug. 26, according to the firm’s announcement released on Tuesday.
All pre-authorized chequing (PAC) and systematic transfer plans (STP) in force for the terminating funds as of Tuesday will continue as per usual until Aug. 26. After investors of the terminating funds are moved into Sun Life Granite Balanced Portfolio, PACs and STPs will transfer to the continuing fund automatically — unless the firm receives instructions that indicate otherwise.
The transfer of investors’ assets into the continuing fund from the terminating funds will be completed on a tax-deferred basis. Any unrealized gains investors have on units of a terminating fund will be deferred until they dispose of units of the continuing fund.
Trading activity within the terminating funds that occurs prior to Aug. 26 and is necessary to complete the transfer of investors from the terminating funds into the continuing fund may result in the realization and distribution of some capital gains for non-registered unitholders, the announcement notes. There will be no tax consequences to registered accountholders.
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