Sun Life, McLean Budden announce changes to funds

Sun Life Financial and McLean Budden Limited have announced several mutual fund changes resulting from their September announcement that Sun Life Global Investments (Canada) Inc. would become the manager for McLean Budden Mutual Funds.

As part of the transition, MFS McLean Budden will appoint MFS Institutional Advisors, Inc.—the parent of MFS McLean Budden—as sub-advisor to McLean Budden’s Global Equity Fund, International Equity Fund and American Equity Fund. The change will take effect March 5, 2012.

As well, the following changes will take effect April 2, 2012:

  • The trust agreement governing the funds, other than the McLean Budden LifePlan mutual funds, will be amended to allow McLean Budden to appoint Sun Life as the manager of the funds.
  • The trustee of the funds will change from RBC Dexia Investor Services Trust to Sun Life Global Investments. RBC Dexia will continue to serve as custodian and recordkeeper for the Funds.
  • In accordance with industry practice, the manager of the funds will cease absorbing the funds’ expenses and thus administrative expenses will be payable by the funds.
  • The management fees of certain classes of the funds will be changed.
  • Certain classes of the funds will be reclassified into the same or a different series of the fund.
  • The names of certain funds will change to reflect Sun Life’s role as manager and to highlight the sub-advisor(s) for the funds.

In addition to the above changes, McLean Budden and Sun Life propose to merge the following mutual funds, also effective April 2, 2012:

Terminating Fund(s)Continuing Fund Proposed Name of Continuing Fund (Post-Merger)
McLean Budden Money Market FundSun Life Money Market FundSun Life Money Market Fund
McLean Budden Global Equity FundSun Life MFS Global Growth FundSun Life MFS McLean Budden Global Growth Fund
McLean Budden International Equity FundSun Life MFS International Growth FundSun Life MFS McLean Budden International Growth Fund
Sun Life McLean Budden Canadian Bond Fund, McLean Budden Real Return Bond Fund, McLean Budden Global Bond FundMcLean Budden Fixed Income FundSun Life MFS McLean Budden Canadian Bond Fund
McLean Budden LifePlan® Retirement FundSun Life Managed Conservative Portfolio*Sun Life Managed Conservative Portfolio (no change)
McLean Budden LifePlan® 2020 FundSun Life Milestone 2020 FundSun Life Milestone 2020 Fund (no change)
McLean Budden LifePlan® 2030 FundSun Life Milestone 2030 FundSun Life Milestone 2030 Fund (no change)

* This mutual fund is in the process of being created and will be managed by Sun Life Global Investments. The fund has not yet received final regulatory approval to commence distribution of securities but is expected to receive such approval in early January 2012.