August 2018 Edition

On July 1st, 2018, the benchmark for the Baillie Gifford International Equity Fund changed from the MSCI EAFE Net (CAD) Index to the MSCI All Country World Ex-USA Net (CAD) Index. The changes made to the investment policy to reflect the new benchmark are as follows:

1. Before July 1st, 2018, the fund targeted an annualized return of at least 2.00% higher than that of the MSCI EAFE Index over four-year moving periods. Since July 1st, 2018, the fund targets an annualized return of at least 2.00% higher than that of the MSCI All Country World Ex-USA Index over four-year moving periods.
2. Before July 1st, 2018, the maximum exposure to any one sector could not exceed the greater of 30% of the fund's market value or the sector's weight in the MSCI EAFE Index plus 15%. Since July 1st, 2018, the maximum exposure to any one sector may not exceed the greater of 30% of the fund's market value or the sector's weight in the MSCI All Country World Ex-USA Index plus 15%.
3. Before July 1st, 2018, the maximum exposure to any one country could not exceed the greater of 30% of the fund's market value or the country's weight in the MSCI EAFE Index plus 15%. Since July 1st, 2018, the maximum exposure to any one country could not exceed the greater of 30% of the fund's market value or the country's weight in the MSCI All Country World Ex-USA Index plus 15%.

Please do not hesitate to contact your client relationship manager for any questions about this change.

As part of its good governance practices, Desjardins Insurance will be withdrawing the following funds from its group retirement savings lineup on September 14, 2018:

• 315 - DFS BlackRock® Balanced Moderate Index Fund
• 205 - Fiera Tactical Fixed Income Fund
• 202 - Desjardins Canadian Equity GF (DGIA) Fund
• 254 - DFS BlackRock® Active Canadian Equity Fund
• 272 - Montrusco Bolton Canadian Small Cap Equity Fund
• 227 - MFS Global Research Fund

Please note that plan members and sponsors impacted by these changes should already have received a communication to this effect, including the replacement fund chosen for each of the withdrawn funds.

It is also important to mention that different factors are considered when deciding which funds remain in the lineup. These factors include whether the funds meet the qualitative and quantitative criteria on which our fund governance process is based, the level of interest in the funds, and their competitiveness against comparable investment options.

For more information about these changes, do not hesitate to communicate with your client relationship advisor.

Desjardins Insurance is proud to announce the launch of two new funds on its group retirement savings platform on September 14, 2018. These funds, which are presented below, will enhance our fund lineup because of the quality investment options in different asset classes.

For more information about these new funds, do not hesitate to communicate with your client relationship advisor.

As part of its governance process, Desjardins Insurance evaluates each fund offered on its group retirement savings platform on a quarterly basis to ensure compliance with its selection criteria.

This evaluation is based on four main elements:

• Personnel
• Investment processes
• Compliance with the stipulated management style
• Performance

As a result of this analysis, some funds are placed on a watch list that is updated every quarter.

For each fund on the watch list, the areas of concern are identified and then closely monitored. Funds will remain on the watch list until the situation has been resolved, or in the event that the concerns persist, until they are no longer recommended or are removed from the platform.

Our fund watch list, including a list of funds no longer recommended, is published quarterly in the Your news section of the plan sponsor services website (dfs.ca/plansponsor External link. Opens in a new window.).

The Quebec government has added a provision to the Act Respecting Labour Standards (Act). This provision prohibits a Quebec employer from creating a disparity in a pension plan (i.e. defined benefit plans, defined contribution plans,simplified pension plans, and voluntary registered savings plan) based on the date of hiring of an employee performing the same duties in the same establishment. For example, an employer who offers a defined benefit plan to a group of employees will not be able to offer a different pension plan (e.g. a defined contribution plan) to employees whose hiring date is different from the other group of employees.

However, if you already instituted different pension plans according to the hiring date of employees on or before June 12, 2018, the Act provides for an exception and those plans don’t have to change.

If you wish to read all the other amendments to the Act, please click on the following link External link. Opens in a new window..