(Source: Business Wire)
The U.S. division of Sun Life Financial Inc. (NYSE: SLF, TSX: SLF) today introduced a new investment choice for its Masters variable annuity (VA) customers, becoming the first VA carrier to offer the PIMCO VIT Global Multi-Asset Portfolio. This innovative asset allocation portfolio is co-managed by PIMCO CEO and Co-Chief Investment Officer Mohamed A. El-Erian and pursues opportunities in a broad range of asset classes, including global equities and bonds, commodities, real estate, derivatives and other variable insurance product funds (including other PIMCO funds). It offers Sun Life's variable annuity customers a dynamic new selection to their investment portfolio that uses a risk factor-based analysis to continually assess external and internal risks to the fund. Together with active tail hedging, PIMCO expects that these innovations will yield better risk-adjusted returns over time than an asset allocation fund based on more conventional asset class approaches.
"As part of our ongoing effort to bring our customers an enhanced choice of funds for their variable annuities, Sun Life is proud to be the first VA carrier to offer the PIMCO VIT Global Multi-Asset Portfolio," said Steve Deschenes, SVP and GM, Annuities. "By offering a broad range of investment options and strong product line backed by Sun Life's financial strength, we are successfully helping financial advisors and their clients fulfill their retirement income needs."
The PIMCO VIT Global Multi-Asset Portfolio works by looking not just at asset class diversification, but risk factor diversification factors and tail hedging as well. It utilizes multiple asset classes including global equities and bonds.
The portfolio offers investors a three-step approach in seeking its investment objectives that features:
Exposure to a mix of key risk factors. PIMCO believes asset class returns are based on underlying risk factors, and the portfolio is intended to diversify an investor's risks as well as assets.
Relative value strategies that enhance returns across multiple domestic and international market segments, the cornerstone of PIMCO's "Total Return" philosophy.
"Tail risk" hedges that seek to proactively protect the investor against certain severe, unanticipated market events that could significantly detract from returns.
"PIMCO is delighted that Sun Life will offer its clients the VIT Global Multi-Asset Portfolio, which incorporates the full expression of PIMCO's views across asset classes and risk exposures," said Dr. El-Erian.
