Sun Life Real Assets Private Pool

Global equity markets rallied during the first quarter (Q1) of 2024 and added to the gains realized in late 2023. In this environment, real assets posted positive performance as well.

In terms of relative positioning, Sun Life Real Assets Private Pool (the “Fund”) maintains a tilt towards natural resources and is modestly underweight global infrastructure and global real estate investment trusts (REITs).

The infrastructure component of the Fund favours assets with high revenue certainty, profitability and lower volatility. The strategy is biased towards Europe where valuations are more favourable. The Fund does not invest in energy. Stock selection drove returns as U.S. railroads and European toll roads helped performance. On the other hand, European regulated utilities detracted from performance.

The real estate component of the Fund favours higher quality real estate and generally looks to invest in properties with real cash flow growth, strong balance sheets and skillful management teams. Stock selection remains the primary driver of the Fund’s returns. The strategy continues to favour apartments, manufactured homes, self-storage facilities, industrial properties and grocery-anchored strip malls.

The resources component focuses on clean energy, water, and agriculture. Resource scarcity is a fundamental underpinning of the strategy. The Fund invests in companies that aim to provide efficient food, energy and water delivery and climate change solutions. An overweight position in utilities as well as an underweight position in traditional energy companies detracted from the Fund’s performance during the period.

Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent of any mutual funds managed by SLGI Asset Management Inc. These views are subject to change and are not to be considered as investment advice nor should they be considered a recommendation to buy or sell. This commentary is provided for information purposes only and is not intended to provide specific individual financial, investment, tax or legal advice. Information contained in this commentary has been compiled from sources believed to be reliable, but no representation or warranty, express or implied, is made with respect to its timeliness or accuracy.

This commentary may contain forward-looking statements about the economy and markets, their future performance, strategies or prospects or events and are subject to uncertainties that could cause actual results to differ materially from those expressed or implied in such statements. Forward-looking statements are not guarantees of future performance and are speculative in nature and cannot be relied upon.

The indicated rates of return are the historical annual compounded total returns including changes in security value and reinvestment of all distributions and do not take into account sales, redemption, distribution or other optional charges or income taxes payable by any security holder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

While Series A and Series F securities have the same reference portfolio, any difference in performance between these series is due primarily to differences in management fees and operating fees. The management fee for Series A securities also includes the trailing commission, while Series F securities does not. Series A securities of the fund are available for purchase to all investors, while Series F securities are only available to investors in an eligible fee-based or wrap program with their registered dealer. Investors in Series F securities may pay a separate fee-based account fee that is negotiated with and payable to their registered dealer.