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  • Introduce yourself – name, background, purpose of meeting, where you want people to ask questions (throughout or wait to end)
  • Review slide
  • We will now take a look at the importance of saving for retirement and the impact that long term growth will play on achieving our retirement goals. Let’s get started…
  • How much you need to save will depend on how much income you need after you retire. Financial planners suggest that in most cases, Canadians will need to replace between 65% and 80% of their pre-retirement income, in order to maintain their current lifestyle. For example, if you make a $40,000 a year income before retiring, and you want to replace your income at a 65% level, then you’ll require $26,000 each year in retirement. If you want to replace your income at an 80% level, you’ll require $30,000 each year in retirement.
  • There are 3 main sources of potential income for retirees: Primary sources of income are considered a company sponsored retirement plan, like your Friesens group RRSP and Deferred Profit Sharing Plan as well as RRSPs that you may have at financial institutions. 2. Secondary sources of income could be derived from other personal savings – such as bank accounts, stock and bonds, a long with the equity you’ve built in your home or income you generate from rental properties. 3. Suplementary sources of income could be derived from government plans like the Canada Pension Plan (CPP) or Old Age Security (OAS). All of these sources of income together work to provide you with a certain level of retirement income
  • Time is your greatest asset when savings for the long term, and you don’t need to set aside a lot to reap the benefits. Here we have two investors, one is 25 years old and the other is 45 year old. The 25 year old begins contributing $500 a year for 40 years and the 45 year old contributes $1000 a year for 20 years. The contribution amount is the same for both but what is drastically different is the amount of money they each have in their retirement savings at age 65. Assuming a 6% rate of return the 25 year old has $118,193 in retirement savings where as the 45 year old has $45,045, that’s a difference of $ 73,148. It’s never too late to start contributing to a retirement savings plan but the earlier you start the more savings you will have when you retire.
  • Now we will look a closer look at Layfield Group Ltd. Retirement savings plan and the benefits of participating
  • There are four key players that have different roles and responsibilities within a company plan. The first one is your employer who provides the framework of your company’s retirement and savings plan. An important component to your group plan is employer contributions. Layfield has a pension committee who select the record keeper to administer your plan. Please inform members who is on the pension committee; Cam Martin; employee representative Gary Pinkerton; CFO Derek Bennett; HR Manager They also select the investment managers and the funds from which you can choose. And they are responsible for monitoring the plan and provide opportunities for member education. As the record keeper Sun Life Financial tracks your investments and develops tools you need to be informed about your retirement savings so that you can make informed decisions about your retirement. Sun Life Financial also provides member education, prepares your statements and issues tax receipts. The Investment Managers are the professionals who do all the of the research needed to set up the funds. From there they basically manage the funds by deciding what stocks or bonds to buy and sell.
  • review
  • You are allowed to make lump sum contributions up to your CCRA RRSP limit, but will not receive a matching company contribution. You choose which funds you want to have in your Group RRSP. You can make withdrawals on member voluntary contributions only while in service. However, CRA treats a cash withdrawal as earnings for the year in which you made a cash withdrawal. There is a $10 administration fee for each withdrawal.
  • You are allowed to make lump sum contributions up to your CCRA RRSP limit, but will not receive a matching company contribution. You choose which funds you want to have in your Group RRSP. You can make withdrawals on member voluntary contributions only while in service. However, CRA treats a cash withdrawal as earnings for the year in which you made a cash withdrawal. There is a $10 administration fee for each withdrawal.
  • If you’re leaving Overwaitea, you have the options to: Transfer you assets to a Group Choices plan with Sun Life Financial Transfer your assets to another financial institution Transfer your assets to a new employers plan (if permitted), or Take your assets in cash, less the taxes – however, this is only applicable to RRSP plans only and not your defined contribution pension plan. If you’re retiring from Overwaitea, you have the options to: Transfer your Defined contribution pension plan assets to a Life Income Fund otherwise know as a LIF with Sun Life Financial or another financial institution Transfer your RRSP assets to a Registered Retirement Income Fund otherwise know an a RRIF with Sun Life Financial or another financial institution, or You can purchase an annuity
  • You receive many benefits when you participate in the Layfield Group RRSP. Review the benefits…..
  • Now we will take a look at the investments offered in the Layfield Group Retirement savings plan.
  • There are basically 3 steps when it comes to choosing your investments. First you need to understand the different types of investments offered in your plan, the risks associated with each, and the importance of diversification. You also need to find out the type of investor you are . Once you have done this then you are ready to choose your investments. You have online access to Morningstar a leading provider in investment news and information. The investment reports you can access through Morningstar provide you with top-rated online investment information and analyses. When you access Morningstar, you can view capital market performance, individual fund performance, investment style factors, fund and manager updates and much more. To access Morningstar on the Sun Life Financial Plan Member website, click on Quick Links, click on drop down menu investment info. This will lead you to investment reports and to Morningstar.
  • There are 4 distinct asset categories for investments, each have their own level of risk involved. Guaranteed funds (or cash equivalents) earn a set rate of interest and give you a guarantee to receive that interest plus the money you invested at the end of a specific term. Guaranteed funds are very low risk. Money Market funds (or cash equivalents) invest primarily in short-term (under one year) government treasury bills and corporate notes. Because they are short-term, they are very low risk and also earn a fairly low rate of return. Bonds or fixed income funds typically invest in bonds issued by governments and companies. As well as paying a rate of interest, bonds also have a market value which can rise and fall. Bond funds have the potential for higher returns than guaranteed or money market funds increasing the level of investment risk. Balanced funds invest in a mix of stocks, bonds, and cash investments. The investment manager will adjust the mix as market conditions change, but they usually stay within pre-determined ranges. Balanced funds fluctuate in value and have a higher level of investment risk than bond funds but lower than equity funds. The potential return on balanced funds is higher than that of bonds and lower than that of equity funds. Equity funds invest in company stock. The investment return on equity funds is determined by increases in the price of the stocks or from dividends paid on these stocks. Because stocks have traditionally outperformed other types of investments, they offer the greatest potential for long-term growth. However, stocks fluctuate more than other types of investments, increasing the level of investment risk. Most stock funds can be subdivided into three caterogies – domestic (or Canadian stocks), U.S. stocks and International or global stocks. International investing means you are investing in companies located outside of North America; Europe, Australia and the far East. Global investing includes companies around the world including North America.
  • Diversifying your investments is one of the best ways to ensure steady growth. Simply put, this means not putting all your eggs in one basket. Choosing a variety of investments can reduce your risk of loss and increase your potential for higher returns. You can diversify your investments By Asset Class (for example. money market, bonds, balanced and equities as discussed in the previous slides), By Manager style – each investment manager adopts a particular style of investing By investing in foreign markets (such as the U.S. or international markets), and Different sectors of the economy (for example, investing in manufacturing vs. corporate) The pension committee looked at the existing fund line up and decided to make the add the new funds to provide you with more diversification; investment manager styles, foreign markets as well as different sectors.
  • Review slide
  • This chart provides you with a quick glance at the investment choices available to you under the Layfield Group RRSP. Each fund is categorized by their asset class and risk. The investment with the lowest risk are featured in the top orange bar, while the investments with the higher risk are featured in the bottom of the chart. some of these funds benefit from a fund manager fee scale - as assets invested with that fund manager increase, the fees decrease. For more information on the funds available in your plan, you can access Morning star on the Sun Life Financial Plan Member Services website which provides quarterly investment fund pages, detailing past performances, management style and asset mix.
  • Different fund managers choose stocks or bonds according to a particular investment philosophy or style. There are two main styles, active and passive. An active manager buys and sells securities (stocks or bonds) in the fund with the objective to outperform the index. The securities that an active manager holds in their funds are based on their research of current market conditions and company prospects. An index manager uses a passive investment style by simply buying and selling assets to match the characteristics of an index (such as the S&P 500 for U.S. equities). An investor that puts their money into a US Equity Index fund for example, is literally going to own a fractional interest in every one of the 500 stocks that make up that index. For this reason, the performance of an index fund should mimic the performance of the index. Because an index manager does not have to do their own research when selecting the stocks or bonds within their fund, index funds have lower management fees than actively managed funds.
  • Dollar cost averaging means investing a certain dollar amount regularly, through up and down periods. The beauty of this system is that when the stock slumps you're buying more, and when it's pricier you're buying less. It's an especially good way to accumulate units if your budget is limited. In this example we can see that the difference in the unit price of a fund each time the units are purchased. At the end of a 12 month period we can calculate our cost by dividing the total investment amount, $3,000 by the total number of units 254.14, which would represent an average cost of $11.80. To calculate the rate of return you have earned over this period of time, take your gain and divide it by the total investment amount you contributed. In this case, $557.96 divided by $3,000.
  • In the investment basics section of this presentation, we went over the risks associated with different asset classes and fund types. It’s important to know what level of risk you’re comfortable with prior to choosing your funds. A great way to determine this is with the Investment risk profiler, found online on the Sun Life Financial Plan Member website. Think of the profiler as a quiz that matches your personality with your money. You’ll have a better understanding of how much risk you’re willing to take when it comes to investing. You’ll also learn the percentage of each asset that you should be investing in.
  • This chart provides you with a quick glance at the investment choices available to you under the Layfield Group RRSP. Each fund is categorized by their asset class and risk. The investment with the lowest risk are featured in the top orange bar, while the investments with the higher risk are featured in the bottom of the chart. some of these funds benefit from a fund manager fee scale - as assets invested with that fund manager increase, the fees decrease. For more information on the funds available in your plan, you can access Morning star on the Sun Life Financial Plan Member Services website which provides quarterly investment fund pages, detailing past performances, management style and asset mix.
  • Here is an example of an investor who scored between 36 and 85 points on the investment risk profiler. They are categorized as a moderate investor. From the pie chart above, you can see a recommended mix of investment types and the percentage of your contribution for each. For example, if you were contributing $100 a pay to your plan, out of that $100, 15% ($15) would be directed to International Equity funds, 20% ($20) to Canadian Equities and so on. You will notice that you have more than one option in most of the categories. For example under Canadian Equities you have 3 choices. If you scored between 36 and 85 points the investment risk profiler suggests you invest 20% in Canadian Equity. You may direct the full 20% to one of the Canadian equity funds or split it between the three fund choices available to you. It is up to you to learn about the funds offered so that you can make informed decisions.
  • Discuss rebalancing technique
  • A key benefit of participating in an employer-sponsored group plan is that the investment fees charged are significantly lower than what you would pay as a retail investor. Low investment management fees matter. You may not think these lower fees make much of a difference, but you’ll be surprised at the impact over the long term. This illustration demonstrates how higher fees can erode the value of your savings over time. The average management fee on Canadian equity mutual funds is around 2.5%. The investment management fees charged on investment options offered through the Layfield Group RRSP range from .79 % to 1.70% . Complete fee information is available on your account statement as well as on the Sun Life Financial Plan Member services website .
  • A key benefit of participating in an employer-sponsored group plan is that the investment fees charged are significantly lower than what you would pay as a retail investor. Low investment management fees matter. You may not think these lower fees make much of a difference, but you’ll be surprised at the impact over the long term. This illustration demonstrates how higher fees can erode the value of your savings over time. The average management fee on Canadian equity mutual funds is around 2.5%. The investment management fees charged on investment options offered through the Layfield Group RRSP range from .79 % to 1.70% . Complete fee information is available on your account statement as well as on the Sun Life Financial Plan Member services website .
  • A key benefit of participating in an employer-sponsored group plan is that the investment fees charged are significantly lower than what you would pay as a retail investor. Low investment management fees matter. You may not think these lower fees make much of a difference, but you’ll be surprised at the impact over the long term. This illustration demonstrates how higher fees can erode the value of your savings over time. The average management fee on Canadian equity mutual funds is around 2.5%. The investment management fees charged on investment options offered through the Layfield Group RRSP range from .79 % to 1.70% . Complete fee information is available on your account statement as well as on the Sun Life Financial Plan Member services website .
  • A key benefit of participating in an employer-sponsored group plan is that the investment fees charged are significantly lower than what you would pay as a retail investor. Low investment management fees matter. You may not think these lower fees make much of a difference, but you’ll be surprised at the impact over the long term. This illustration demonstrates how higher fees can erode the value of your savings over time. The average management fee on Canadian equity mutual funds is around 2.5%. The investment management fees charged on investment options offered through the Layfield Group RRSP range from .79 % to 1.70% . Complete fee information is available on your account statement as well as on the Sun Life Financial Plan Member services website .
  • Now we will take a look as some helpful tools offered through Sun Life Financial to help you build a strong financial portfolio.
  • In order to sign into the Sun Life member website you will be required to input your access ID and password. Once you have signed in you will select the link under my financial future which will bring you to my info café. My info café is seen as your home page where you can access all your plan information and tools. On the left hand side of the screen you have direct links to your online Investment risk profiler, known as the Asset Allocation tool, the Retirement Planner and other financial planning tools. You will also find direct links to your account information from Quick links. My info café features two main sections, my messages and newsstand. my messages contains important reminders and messages specific to your situation. Ensure that you review any messages within this section each time you visit the website. In the newsstand you’ll find helpful links to information on retirement and savings topics, including online newsletters, webcasts, your responsibilities and so much more . Remember you can still access your plan information and tools through the drop-down menus. To access the online tools, go to the Resource Centre drop-down menu and select My Money Tools . Under my money tools is where you will find the retirement planner……lets now take a closer look at the retirement planner.
  • You will first be asked to complete the ‘my information’ screen. Some of the information on this screen will be pre-populated with information you provided to Sun Life Financial when you enrolled in the Plans. To learn more about the sections on this first screen, just select the question mark beside each heading.
  • Your account balances from the Goldcorp DCPP and RRSP will automatically be pre-populated in the my assets section of this screen. If you have savings plans outside of Goldcorp, you can enter the balances of these accounts on this screen. Other sources of income such as your Canada Pension Plan (CPP) and Old Age Security (OAS) are automatically taken into consideration within the calculation.
  • The Retirement Planner considers all the information provided, to suggest a retirement lifestyle that might be appropriate for you. Once you have selected a retirement lifestyle, you’ll be taken to the Action Plan page. The Retirement Planner then calculates all the information provided and suggests a retirement lifestyle. At this time you can also view other retirement lifestyles to ensure the one suggested best suits your goals.
  • Once you’ve determined your retirement lifestyle, you’ll be presented with an Action plan. Think of your action plan as your retirement blueprint. Your action plan takes into account the number of years to retirement, your income, your investments and savings, your desired risk tolerance and your lifestyle goals. In the example show here, the Action Plan informs the member that their desired retirement lifestyle is currently out of reach. Meaning, with the savings they currently have, they will not have enough money to live their desired retirement lifestyle. Don’t get discouraged. This is why it’s called an action plan. Recommendations are provided on some possible changes you could implement to help you reach your retirement goals. In this next example, the graph compares your estimated assets at retirement to the assets you will require to live your desired retirement lifestyle. The amounts are displayed in future dollars, meaning inflation has been calculated into the examples shown here. The red area within this graph represents the gap between what you should have and what you will have based on your current information. On this next screen, you see your current monthly savings, then what your project monthly savings should be to achieve your desired lifestyle and finally the additional savings you require to save each month to meet your retirement lifestyle. This last screen shot shows how you can adjust some of your information and recalculate for other scenarios to create an alternate action plan. As your financial situation may change, or your retirement priorities may change, it’s always a good idea to revisit your action plan periodically to ensure you’re on track or to update it with new information which may alter your action plan.
  • We will now look at ways you can manage your account on a day to day basis
  • Morningstar is a leading provider in investment news and information. The investment reports you can access through Morningstar provides you with top-rated online investment information and analyses. Tracking the performance of your plan’s investment funds have never been so easy and comprehensive. On the plan member website, you have access to Morningstar, where you can view capital market performance, individual fund performance, investment style factors, fund and manager updates and much more under investment information. Through the Portfolio X-ray you can analyze different combinations of funds as a single portfolio, including the effect of asset allocation and fund changes to your portfolio. Get to know Morningstar. You can link directly to Morningstar by selecting the Investment Reports links from the Quick Links section of my info café, or by going to the Accounts drop-down menu and selecting Investment Reports. Select the Morningstar link or logo to access the investment information.
  • Other financial tools you may find helpful can be found in the Financial Planning tools link directly from my info café or by going to the Resource Centre Drop-down menu and selecting Tools from the My Money Tools link. Featured here are just a few: Withdrawal calculator shows you the current and future impact of withdrawals from your RRSP. Remember withholding taxes may be withheld. Mortgage vs. RRSP calculator helps you decide whether it’s more advantageous to contribute to an RRSP or pay down your mortgage. RRSP loan calculator allows you to determine if it’s in your best interest to take out a loan to make a lump sum contribution to your RRSP. Capital gains vs. RRSP tax comparison calculator helps you determine whether you’d be better off investing inside or outside of your RRSP.
  • Besides the Retirement Planner, there are also some other supplementary retirement planning tools available online. Annuity premium calculator allows you to estimate the premium (or amount) you require to provide a specified level of income, as well as estimate the monthly income that a specified lump sum will provide. Old age security (OAS) clawback calculator explains ‘clawback’ and provides you with an estimate as to your monthly OAS payments. Retirement income fund (RRIF) calculator shows how much you can withdraw each year from your RRIF, and estimates how long your retirement income will last.
  • Review slide
  • Questions and thank plan members for coming out and participating

Transcript

  • 1. UNBC Retirement Savings Plan Defined Contribution Pension Plan (DCPP)
  • 2.
    • why save?
      • Getting started
    • my plan
      • Your plan advantage
    • my investments
      • Investment review
      • Choosing your funds
    • my account
      • Get involved
  • 3. Saving for Retirement
  • 4. How much money do you need for retirement? Canadians need 65% to 80% pre-retirement income replacement
  • 5. Retirement income CPP/OAS Home Other Savings Personal RRSP UNBC Defined Contribution Pension Plan primary Where will your money come from? supplement secondary
  • 6. Government benefits Request your CPP/QPP contributions & benefit statement from: www.servicecanada.gc.ca * Rates above as of April 2009 $489.57 $501.82 Average $516.96 $908.75 Maximum Old Age Security (OAS) Canada Pension Plan (CPP/QPP) 2009
  • 7. Benefits of starting early Assumes a 6% rate of return
  • 8.  
  • 9. Insert Slide Title Here Responsibilities
    • Sponsor the plan
    • Pension Committee
    • Plan design
    • Selecting Investment Managers
    • Selecting funds
    • Selecting the record keeper
    • Monitoring the plan
    UNBC
    • Record keeping
    • Preparing statements
    • Developing tools
    • Member education
    • Tracking your investments
    • Tax receipts
    Sun Life Financial Investment Managers
    • Funds
    • Performing research
    • Creating the fund
    • Selecting the stocks or bonds
    • Buying and selling
    You/member
    • Your Account
    • Making contributions
    • Understanding investments
    • Choosing investments
    • Monitoring savings and investments
    • Filing personal information updates
    • RRSP limits
    • Paying investment
    • management fees
    • Paying withdrawal fees
  • 10. DC Plan contribution limits Lesser of 18% of current years earnings or $22,000 DC Pension Plan Contributions are part of your Pension Adjustment, show up on your T4 slip and affect the amount that you can contribute to your RRSP
    • Includes :
      • Your contributions
      • UNBC’s contributions
      • Additional voluntary contributions
    indexed 2010 $22,000 2009 $21,000 2008
  • 11. RRSP contribution limits Lesser of 18% of previous years earnings or $21,000 Pension Adjustment (PA)* Unused RRSP Room (if any) + -
    • Pension Adjustment (PA) shown on T4.
    For your information about your personal limits visit www.cra.gc.ca $22,000 2010 $21,000 2009 $20,000 2008
  • 12. Registered Retirement Savings Plan (RRSP) 2009 Plan Contributions UNBC Registered Pension Plan Employee Compulsory UNBC
    • 3% of earnings up to the YMPE
    • 5% above the YMPE
    • Additional Voluntary (no match)
    • Transfers-in allowed
    • 8% of earnings up to the YMPE
    • 10% above the YMPE
    2009 YMPE = Yearly Maximum Pensionable Earnings = $46,300.
  • 13. Registered Retirement Savings Plan (RRSP) Doing the math Assumption: Mary earns $65,000 annually. Mary $46,300 x 3% = $1,389.00 Mary $18,700 x 5% = $ 935.00 UNBC $46,300 x 8% = $3,704.00 UNBC $18,700 x 10% = $1,870.00 Total Benefit = $7,898.00
  • 14. Registered Retirement Savings Plan (RRSP) When do you own the funds? Mary $44,900 x 3% = $1,263.00 Mary $ 7,900 x 5% = $ 395.00 UNBC $44,900 x 8% = $3,368.00 UNBC $ 7,900 x 10% = $ 790.00 Total Benefit = $5,816.00
    • Vesting
    • Vesting refers to when you own the University contributions. You are vested after 2 years of continuous service with the University.
    • If you leave UNBC prior to 2 years of continuous service, contributions are not yours to take with you.
    • You always own your contributions.
    • Locking in
    • Once you have been contributing into the DCPP for 2 years, the funds become locked in which means they are not available for you to use until you retire.
  • 15. What happens if you…
    • Leave UNBC
    • Transfer your DCPP to:
      • Locked in account with Sun Life Financial - CHOICES
      • Locked in account at another financial institution
      • A new employer (if permitted)
    • Retire from UNBC
    • Transfer your DCPP to:
      • A LIF (Life Income Fund) with Sun Life Financial - CHOICES
      • A LIF at another financial institution
    • Purchase an annuity
    What happens if you…. What happens if you….
  • 16. You get it all when you save through your company plan  ×       × × × × × × × × × × × × × × × × Access to institutional fund managers Lower investment management fees Immediate tax relief on your contributions Tax deductible & tax sheltered investment earnings Regular payroll contributions University contributions UNBC Your personal RRSPs Your savings account Your piggy bank
  • 17.  
  • 18. Your steps to investing
    • Understand the basics
      • types of funds
      • risk vs. returns
      • importance of diversification
    • Determine what type of investor you are
    • Choose your funds
      • refer to the Investment Reports section through your online account
  • 19. Understand risk vs. return
    • Bonds
      • Promise to repay debt
      • Receives interest
      • Various terms to maturity
      • Government and corporate
    • Money market
      • Federal government debt
      • Short term, less than 1 year
    • Balanced
      • Mix of cash, bond and equities
      • Automatic diversification
    • Equities
      • Ownership in company
      • Share in company profits
      • Canadian or foreign
  • 20. Growth of $10,000 (January 1999 – December 2008) $17,200 $18,000 $14,400 Source : Morningstar.ca $17,200 $18,000 $14,400 $12,500 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 Dec 98 Dec 99 Dec 00 Dec 01 Dec 02 Dec 03 Dec 04 Dec 05 Dec 06 Dec 07 Dec 08 TSX DEX 91-Day T-Bill Index TSX DEX Universe Bond Index S&P/TSX Composite Index Consumer Price Index
  • 21.
    • Diversification: holding different types of investments in your portfolio
    • Lower your overall risk by: not putting all of your eggs in one basket
    Diversify your investments Asset Class Manager Style Sector Foreign Markets Ways you can diversify
  • 22. Think about investing outside of Canada
    • Canada Revenue Agency now allows 100 % foreign content in your registered accounts
    • Canada represents only 2-3% of the world stock market
    • Some foreign markets have historically outperformed Canada over the long-term
    • Consider investing outside of Canada as one way to diversify
  • 23. Your investment options Passive Active - Value Active - Growth Moderate High Moderate High Moderate High
    • BGI US Equity Index
    • CI American Value
    • McLean Budden US Equity
    US Equities Active - GARP Moderate High
    • McLean Budden Global Equity
    Foreign Equities Passive Active -Value Active - Blend Active - Growth Active - Value Moderate High Moderate High Moderate High Moderate High High
    • BGI S&P/TSX Composite Index
    • Beutel Goodman Canadian Equity
    • McLean Budden Canadian Equity
    • McLean Budden Canadian Equity Growth
    • Beutel Goodman Small Cap
    Canadian Equities Active - Value Active - Value Active - Growth Moderate Moderate Moderate
    • Beutel Goodman Balanced
    • BonaVista Balanced
    • McLean Budden Balanced Growth
    Balanced Passive Active Low Moderate Low Moderate
    • BGI Bond Index
    • PH&N Bond Fund
    Fixed Income/Bond N/A N/A Low Low
    • Sun Life 1, 3 & 5 Year Guaranteed
    • Sun Life Money Market
    Money Market/ Guaranteed Fund Management Style Risk Fund Name Asset Class
  • 24. Investment Manager approaches Active Objective is to outperform a market index based on research of current market conditions and company prospects Actively buys and sells securities in individual funds Passive or Index Simply buys and sells assets to match characteristics of an index, fund performance should be similar to the index, i.e. S&P TSX Fund Manager applies an Investment “style” to their approach BonaVista, Beutel Goodman McLean Budden, PH&N, CI Fund Management Fees tend to be lower than an Active Fund Manager BGI
  • 25. Investment styles Value Focuses on stocks that a fund manager thinks are currently undervalued in price and will eventually have their worth recognized by the market Growth Believes that the single most important thing driving stock prices is rapidly rising corporate earnings -- and that's what they look for If the manager is right, the stock will increase in price as others in the market recognize the true value of the stock CI, BonaVista, Beutel Goodman If the manager is right, the company’s stock will increase in price as the company achieves business and earnings growth McLean Budden
  • 26. Investment styles GARP Growth at a reasonable price - looks for stocks of growth companies that they can buy for a reasonable price This is a combination of value and growth investing McLean Budden Global
  • 27. Dollar cost averaging Market Value = $3,557.96 Rate of Return = 18.59% Dollar cost averaging 20.83 $12 $250 4 22.72 $11 $250 3 25 $10 $250 2 25 $10 $250 1 Units purchased Price Amount Month 19.23 $13 $250 8 17.86 $14 $250 7 19.23 $13 $250 6 22.72 $11 $250 5 254.14 Avg. price = $11.80 $3,000 Total 17.86 $14 $250 12 25 $10 $250 11 20.83 $12 $250 10 17.86 $14 $250 9
  • 28.  
  • 29. Your guide to choosing funds
    • Complete the questionnaire in the Investment Risk Profiler online
    • www.sunlife.ca/member
    • Review your fund choices
    • online through Morningstar ®
    • Select your funds according to your
    • risk tolerance
    my money Investment Risk Profiler
  • 30. Your investment options Passive Active - Value Active - Growth Moderate High Moderate High Moderate High
    • BGI US Equity Index
    • CI American Value
    • McLean Budden US Equity
    US Equities Active - GARP Moderate High
    • McLean Budden Global Equity
    Foreign Equities Passive Active -Value Active - Blend Active - Growth Active - Value Moderate High Moderate High Moderate High Moderate High High
    • BGI S&P/TSX Composite Index
    • Beutel Goodman Canadian Equity
    • McLean Budden Canadian Equity
    • McLean Budden Canadian Equity Growth
    • Beutel Goodman Small Cap
    Canadian Equities Active - Value Active - Value Active - Growth Moderate Moderate Moderate
    • Beutel Goodman Balanced
    • BonaVista Balanced
    • McLean Budden Balanced Growth
    Balanced Passive Active Low Moderate Low Moderate
    • BGI Bond Index
    • PH&N Bond Fund
    Fixed Income/Bond N/A N/A Low Low
    • Sun Life 1, 3 & 5 Year Guaranteed
    • Sun Life Money Market
    Money Market/ Guaranteed Fund Management Style Risk Fund Name Asset Class
  • 31. Example: A score of 36 to 85 points - Moderate 15% U.S. Equity 20% CDN. Equity 40% Fixed Income 10% Money Market 15% Intl. Equity Building your own asset mix Investment Option Investment Type
    • Sun Life Financial Money Market Fund
    • Sun Life Financial 1,3 & 5 year Guaranteed Fund
    Guaranteed/ Money Market 10%
    • PH&N Bond Fund
    • BGI Bond Index Fund
    Bond/ Fixed Income 40%
    • Beutel Goodman Small Cap Fund
    • Beutel Goodman Canadian Equity Fund
    • BGI S&P/TSX Composite Index Fund
    • McLean Budden Canadian Equity Growth Fund
    • McLean Budden Canadian Equity Fund
    Canadian Equity 20%
    • McLean Budden Global Equity
    International Equity 15%
    • BGI US Equity Index Fund
    • McLean Budden US Equity Fund
    • CI American Value Fund
    U.S. Equity 15%
  • 32. Rebalance often to match your risk tolerance 10% International Equity Canadian Equity Bonds 45% Bonds 45% Stocks 45% 45% 10% 35% Bonds 45% Starting point 5% 35% 60% 1 year later Transfer: 10% Cdn Equity to Bonds 5% Cdn Equity to International Equity 60% Stocks 5% 45% 10% Starting point 45%
  • 33. Fund Asset Mix 0.00% 8.64% 0.00 3,472,371.60 0.91% 11.45% 309,748.27 3,880,333.61 BGI Bond Index Fund PH&N Bond Fund 8.64% $ 3,472,371.60 12.36% $4,190,081.88 Fixed Income 2.5% 5.73% 4.43% 21.24% 4.78% 1,002,926.87 2,304,544.48 1,781,376.34 8,534,858.68 1,921,851.86 2.20% 4.89% 3.55% 16.42% 3.40% 745,642.55 1,657,499.07 1,204,374.07 5,565,262.97 1,153,675.55 Beutel Goodman Canadian Equity Fund Beutel Goodman Small Cap Fund BGI S&P/TSX Composite Index Fund McLean Budden Canadian Equity Fund McLean Budden Cdn Eq Growth Fund 38.68% $15,545,558.23 30.47% $10,326,454.21 Canadian Equity 2.03% 0.00% 3.07% 25.65% 815,189.49 0.00 1,234,922.29 10,308,032.25 3.16% 21.80% 3.98% 0.0% 1,071,584.71 7,388,732.80 1,349,576.46 0.00 Beutel Goodman Balanced Fund BonaVista Balanced Fund McLean Budden Bal. Growth Fund PH&N Balanced Pension Fund 30.75% $12,358,144.03 28.95% $9,809,893.97 Balanced % of Investment Dec. 31 st 2007 Balances % of Investment Dec. 31 st 2008 Balances
  • 34. Fund Asset Mix 8.89% $ 3,572,203.81 8.49% $2,875,770.92 Foreign Equity 0.93% 1.23% 1.91% 8.97% 375,439.68 494,678.12 766,575.20 3,605,284.12 1.81% 1.66% 3.18% 13.08% 614,264.65 563,966.38 1,076,924.61 4,430,919.74 SLA 1 YR Guaranteed Fund SLA 3 YR Guaranteed Fund SLA 5 YR Guaranteed Fund Sun Life Money Market Fund 13.04% $ 5,241,977.12 19.73% $6,686,075.38 Guaranteed/Money Market % of Investment Dec. 31 st 2007 Balances % of Investment Dec. 31 st 2008 Balances 0.77% 1.86% 6.05% 0.21% 308,862.97 746,955.02 2,430,889.57 85,496.25 0.82% 1.82% 5.40% 0.45% 276,836.22 616,557.96 1,830,660.12 151,716.62 BGI US Equity Index Fund CI American Value Fund MB Global Equity Fund MB US Equity Fund 100.00 % $40,190,254.79 100.00 % $33,888,276.36 Total
  • 35. Fund Performance Data through 31 Dec 2008 12.9 9.9 15.3 12.5 14.4 12.0 1.1 3.5 -18.3 -15.0 BonaVista Balanced Fund BonaVista Balanced Benchmark 2.1 2.6 0.5 2.6 3.6 3.2 3.7 4.5 4.4 2007 13.6 12.5 13.6 12.2 4.1 4.4 4.1 4.0 4.0 2006 11.4 12.0 10.1 11.2 6.5 7.0 6.5 2.6 2.6 2005 8.5 9.5 10.9 9.3 7.1 7.3 7.2 2.2 2.3 2004 -17.5 -16.4 -10.0 -14.9 6.0 3.8 6.4 3.6 3.3 2008 Beutel Goodman Balanced Fund Beutel Balanced Benchmark McLean Budden Balanced Growth Fund McLean Budden Balanced Benchmark BGI Bond Index Fund PH&N Bond Fund DEX Universe Bond Sun Life Money Market Fund DEX 91 Day TBill Index Fund
  • 36. Fund Performance Data through 31 Dec 2008 -21.8 -25.4 -22.8 -21.6 -21.9 -21.5 -21.2 -28.3 -46.6 -32.5 -22.2 -31.9 -38.0 -33.0 2008 14.6 14.3 12.2 11.9 14.5 24.0 17.7 21.2 22.9 24.1 17.4 16.6 18.3 21.3 17.3 9.9 6.3 8.3 11.6 9.8 BGI S&P/TSX Composite Index Fund Beutel Goodman Canadian Equity Fund McLean Budden Canadian Equity Fund McLean Budden Cdn Eq Growth Fund S&P/TSX Capped Composite 5.5 6.9 5.7 7.3 19.6 20.2 -7.9 -7.1 McLean Budden Global Equity Fund MSCI World C$ 12.2 3.9 3.3 5.2 3.0 1.6 18.7 14.9 15.7 -1.6 -4.8 -10.6 CI American Value Fund McLean Budden US Equity Fund S&P 500 C$- Bank of Canada 2.5 2.8 2.0 2.3 15.1 15.3 -10.8 -10.5 BGI US Equity Index Fund S&P 500 Index ( Cdn $) 14.7 14.1 11.2 19.7 22.3 16.6 3.0 2.0 Beutel Goodman Small Cap Fund BMO Small Cap Blended (Weighted) 2004 2005 2006 2007 Fund
  • 37. Understanding Fees Fund Management Fee (expressed as a % of fund assets you hold) Low 0.41% High 1.64 % Fees in your plan range To view your fees visit www.sunlife.ca/member Annual Fees $70.00 Fund Management % 0.70% $10,000 Example
  • 38. Fund Management Fees at February 28, 2009 1.64% BonaVista Balanced Fund 0.69% PH&N Bond Fund 0.41% Sun Life Financial Money Market Fund None Sun Life GICs 0.46% BGI Bond Index Fund 0.68% McLean Budden Balanced Growth Fund 0.76% Beutel Goodman Balanced Fund Total Fund Management Fee Fund Name
  • 39. Fund Management Fees at February 28, 2009 0.68% McLean Budden Canadian Equity Growth Fund 0.48% BGI S&P/TSX Composite Index Fund (P) 0.68% McLean Budden Canadian Equity Fund 0.78% Beutel Goodman Canadian Equity Fund 0.78% Beutel Goodman Small Cap Fund 1.31% CI American Value Fund 0.48% BGI US Equity Index Fund (P) 0.74% McLean Budden US Equity Fund 0.70% McLean Budden Global Equity Fund Total Fund Management Fee Fund Name
  • 40. * Assumes a 5.75% real rate of return Low Fund Management Fees (FMF) make a difference Investment management fee Annual contributions Years of contributions 2% $5,000 20 1.5% $5,000 20 1% $5,000 20 1.5% $157,752 1% $167,568 Total contribution: $100,000 2% $148,588 Ending balance
  • 41. Retirement Planning Tools
  • 42.
    • Select Resource Centre
    • Click on My Money Tools
    Plan Member Website Sign in to www.sunlife.ca/member
  • 43.
    • my information
    • This is the first screen of the retirement planner
    • Some of the information on this screen is pre-populated
    my money retirement planner
  • 44.
    • my assets
    • Enter any additional assets or income you have
    • You can include pensions from previous employers
    my money retirement planner
  • 45.
    • my lifestyle
    • A lifestyle is suggested based on your personal information
    • You can view information on other lifestyles
    • Select your lifestyle and receive your personal action plan
    my money retirement planner
  • 46. Your personal action plan my money retirement planner
  • 47.  
  • 48. Keeping you involved Read your personal statements
    • Quarterly (Available Online)
    • Easy to read
    • Personal rates of return
    • Summary of all plans
    • Transaction history
    • Plan information
    • Bulletin board
  • 49. Keeping you involved
    • 24 hour automated phone account access
    • Representatives available every business day (8 am to 8 pm ET)
    • Account updates
    • 150 languages supported
    • Receive up-to-date account balances
    • View transaction history
    • Make investment changes
    • Link directly to investment reports
    • View online member statements
    Internet www.sunlife.ca/member Customer Care Centre 1-866-733-8612
  • 50.
    • Investment Information
      • Capital market performance
      • Individual fund performance
      • Investment style, fund and manager updates
    • Portfolio X-Ray
      • Analyze different combinations of funds as a single portfolio; including the effect of asset allocation changes to the portfolio
    • Fund Compare
      • Compare and analyze funds in your plan with the full list of available funds
    • Performance Reports
      • Generate investment performance reports for your plan’s funds
    Getting information about your funds (Morningstar ®)
  • 51. Keeping you involved     Withdrawal calculator Capital Gains vs. RRSP calculator Mortgage vs. RRSP calculator RRSP Loan calculator Do your financial planning online
  • 52. Keeping you involved Do your financial planning online OAS claw-back calculator RRIF calculator    Annuity calculator
  • 53. Your action plan
    • Use the Investment risk profiler to determine your recommended portfolio allocation
    • Use the Retirement planner to evaluate if your current contributions will meet your retirement goals
    • Review your current portfolio
    • Update your future investment instructions as required
    • Update your existing portfolio as required
    • Update any personal information that is out of date (ie. Beneficiary)
  • 54. Questions ?