Fund Wrap Field Expands – Blog

Sun Life Global Investments has announced the details of its new fund wrap program, Sun Life Granite Managed Portfolios today. The family of five target-risk mutual fund-of-funds (MFoFs) features tactical asset allocation to adjust to market conditions. The program wraps between 10 and 15 underlying funds from proprietary and third-party sponsors. As of June 2011, the Canadian fund wrap segment included 161 programs with a collective asset base of $228 billion. Sun Life currently offers five segregated fund-of-fund programs, totaling $3 billion at the end of June 2011. Sun Life Global Investments also offers a target-date mutual fund wrap. The launch reflects a broader funds industry trend towards greater importance of pre-assembled advice solutions. In the past several years, fund wraps have continued to generate rapid inflows, while stand-alone funds (or funds sold outside of fund wraps and other managed asset solutions) have struggled to consistently stay out of the net redemption territory. In 2011 MFoFs have accumulated $20 billion in net flows, compared to $5 billion in net redemptions for stand-alone funds.The cited metrics are derived from Investor Economics’ Portfolios database which tracks Canadian fund wrap programs. For more information on news and developments concerning the Canadian fund wrap segment, please see the latest issue of the Fee-based Report. Posted by Bonnie Ho