Absolute return funds: Aims to deliver long-term capital growth regardless of market conditions

Staying invested through bouts of market turmoil is the key to successful investing and reaching your financial goals. Sun Life Multi-Strategy Target Return Fund goes beyond traditional investments with strategies aimed at growing wealth – even when the market is falling.

What is absolute return?

Investment funds that seek to deliver positive returns in all market conditions are also sometimes referred to as “absolute return” funds. To provide some contrast, consider a global equity fund that seeks to deliver “relative” outperformance compared to a benchmark index such as the MSCI All Country World Index.

Say over the course of a three-year period the MSCI All Country World Index falls 4.5% and the global equity fund falls 2.5%. Even though the fund return is negative, it still did better than the benchmark. We would say the fund outperformed the benchmark on a relative basis, and in that context it would likely be considered a success.

Absolute return funds typically measure success without reference to a benchmark. They seek to deliver returns above a stated threshold such as a reference interest rate, regardless of market conditions. They aim to do this over a time horizon that’s typically measured in years.

In this respect Sun Life Multi-Strategy Target Return Fund could be characterized as an absolute return fund.

Sun Life Multi-Strategy Target Return Fund is offered under a long form prospectus, which you can find at www.sunlifeglobalinvestments.com. In order to sell this fund, your financial representative must meet certain proficiency requirements.