CORPOR ATE CLASS FUNDS A TAX-WISE OPTION FOR NON-REGISTERED INVESTMENTS

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1 CORPOR ATE CLASS FUNDS A -WISE OPTION FOR NON-REGISTERED INVESTMENTS

2 CORPORATE CLASS FUND LINE-UP Sun Life Global Investments corporate class funds feature a comprehensive range of asset classes and provide access to multiple portfolio management teams from well-known firms like BlackRock, MFS Investment Management, Sentry Investments and others. SUN LIFE GRANITE MANAGED CLASSES: Sun Life Granite Conservative Class Sun Life Granite Moderate Class Sun Life Granite Balanced Class Sun Life Granite Balanced Growth Class Sun Life Granite Growth Class SUB-ADVISED FUNDS: Sun Life BlackRock Canadian Balanced Class Sun Life BlackRock Canadian Equity Class Sun Life BlackRock Canadian Composite Equity Class Sun Life Dynamic Equity Income Class Sun Life Dynamic Strategic Yield Class Sun Life Franklin Bissett Canadian Equity Class Sun Life Money Market Class Sun Life MFS Dividend Income Class Sun Life MFS Canadian Equity Class Sun Life MFS U.S. Growth Class Sun Life MFS Global Growth Class Sun Life MFS International Growth Class Sun Life Sentry Value Class Sun Life Sionna Canadian Small Cap Equity Class Sun Life Trimark Canadian Class Talk to your advisor today about tax-wise options for your non-registered investments.

3 MORE OF WHAT YOU WANT LESS OF WHAT YOU DON T RRSPs and TFSAs are tax-advantaged ways to help you grow your investments. But is there a tax-wise option for your nonregistered money? Corporate class funds may offer advantages for investments you hold outside of a registered plan. -DEFERRED REBALANCING As you move through different life stages, you may want to make changes to your portfolio. A traditional mutual fund is structured as a trust. If you have mutual fund trusts that are not in a registered plan, anytime you switch funds you ll pay capital gains tax on any profits. With a corporate class fund, as long as you are switching between funds within the same corporation, your taxes are deferred until you move your investment out of the corporate structure. This means you can adjust or rebalance your portfolio as needed without having to worry about immediate tax consequences. Canadian Canadian Fixed income MUTUAL FUND TRUST STRUCTURE Global Fixed income CORPORATE CLASS STRUCTURE Global Balanced Balanced

4 EFFICIENT DISTRIBUTIONS Corporate class funds are structured in such a way that you ll likely receive fewer distributions than you would with a mutual fund trust. And if a distribution happens, it may be taxed at a more favourable rate. MORE MONEY IN THE MARKET Because of tax-deferred switching, more of your money may get invested over time and benefit from compounding. This chart shows the hypothetical outperformance of a $100,000 investment in a corporate class fund versus a mutual fund trust over a 20-year period. 2 $500, $450, $400, $350, $300, $250, $200, $150, $100, $50, $ $375, $328, Class Portfolio Trust Portfolio After tax, the corporate class portfolio has grown by almost $50,000 more than the mutual fund trust portfolio. 2 This hypothetical scenario assumes a $100,000 initial investment. The portfolio is comprised of 100%. A time horizon of 20 years was used and an annual return of 8% was projected. Capital gains were taxed at 49.53% with an inclusion rate of 50%. Zero distributions occurred during the 20 year period. The traditional mutual fund portfolio (trust portfolio) is rebalanced every 3 years to crystalize gains while the corporate class portfolio (class portfolio) was able to switch in and out of various funds within the corporation and defer taxable gains for the entire 20 year period. If we were to liquidate both portfolios at the end of year 20, the after tax values for the class and trust portfolios would be $375, and $328, respectively. Hence the class portfolio has accumulated $47, (14.35%) more than the trust portfolio tax will be incurred based on the initial cost base of those shares (in this case initial cost base = $100,000). A number of assumptions have been made in this hypothetical scenario and actual results will differ.

5 ARE RIGHT FOR YOU? WHO CAN BENEFIT FROM CORPORATE CLASS? Individuals in high tax brackets Pensioners Corporations, Professional Corporations and Holding Companies Inter-vivos trusts: Family trusts Spousal trusts Alter- ego trusts Children s trust Henson trusts WHY? High marginal tax rates can reduce investment returns by as much as 50%. Government pensions such as Old Age Security are income tested. A clawback tax of 15% starts at taxable income of $71,592 1 and the full benefit is clawed back at $115,716 1 in taxable income. Interest and other passive income are taxed at 46%. 2 This high tax rate may reduce returns by 46%. 2 Passive income earned in these trusts is taxed at the highest personal tax rates. HOW? Corporate class funds can potentially reduce taxable distributions. Tax deferred growth means more money is staying in your account to grow, leading to a higher account value. While both mutual fund trusts and corporate class funds receive preferential tax treatment, on redemption, corporate class will generate higher taxable capital gains. Switching between classes in the same corporate structure can be done on a tax deferred basis allowing the investors to reallocate their portfolio as appropriate. The tax deferral allows for more of your money to stay invested and grow at an annual compound basis. By reducing taxable distributions, investors can manage taxable income to fall below the clawback threshold. Corporate class funds can potentially reduce taxable distributions and defer income to grow to a higher account value. On redemption, corporate class funds will generate higher taxable capital gains. You can take advantage of tax efficient capital gains and draw tax free dividends from your corporation s capital dividend account with the non-taxable portion of capital gains. Corporate class funds can potentially reduce taxable distributions. As mentioned, this can allow deferred income to compound on an annual basis and potentially lead to a higher account value. This is particularly attractive for trusts with a deferred distribution schedule. On redemption, corporate class will generate higher taxable capital gains. 1 Net income before adjustments (line 234 on your tax return) for the period July 2015 June National average corporate tax rate on interest, effective March 2014.

6 ILLUMINATING A BRIGHTER WORLD OF INVESTMENTS Sun Life Global Investments offers Canadians a diverse line-up of mutual funds and innovative portfolio solutions, empowering them to pursue their financial goals at every life stage. We bring together the strength of one of Canada s most trusted names in financial services with some of the best asset managers from around the world to deliver a truly global investment platform. Sun Life Global Investments manages more than $12 billion on behalf of institutional and retail investors from coast to coast and is a member of the Sun Life Financial group of companies. Please speak with your Sun Life Wealth Sales Director today The information contained in this brochure is intended for general informational use only and is compiled from sources believed to be reliable, but no representation or warranty, express or implied, is made as to its accuracy. The material contained herein is not intended to provide specific financial, tax, insurance, investment, legal or accounting advice and should not be relied upon in that regard and does not constitute a specific offer to buy and/or sell securities. The Sun Life Global Investments Corporate Class mutual funds each represent a separate class of shares of Sun Life Global Investments Corporate Class Inc., a mutual fund corporation. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Investors should consult with professional advisors before acting on any information contained in this brochure. On July 29, 2015, the word Managed was replaced by the word Granite in the name of each Sun Life Granite Managed Solution. Sun Life Global Investments (Canada) Inc., Sun Life Global Investments (Canada) Inc. is a member of the Sun Life Financial group of companies