2007 Annual Report - Sun Life Financial

DOLLAR ABUNDANCE FUND
GS FUND
2007
2007
Weighted Average
Effective Interest
Rate
Weighted
Average
Effective
Interest Rate
Less than One
Less than One
Month
Month
three Months
to One year
One-Five
One-Five years Five+ years total
Non-interest bearing - P 6,827 P - P - P 6,827
Fixed interest rate
instruments 7.08% 16,620 50,265 15,113 81,998
2006
P23,447 P50,265 P15,113 P88,825
Non-interest bearing
Fixed interest rate
- P 3,699 P - P - P 3,699
instruments 7.38% 39,320 23,157 28,551 91,028
P43,019 P23,157 P28,551 P94,727
Credit risk
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting
in financial loss to the Companies. The Companies have adopted a policy of only dealing with
creditworthy counterparties, and only transacts with entities that are rated the equivalent of
investment grade of AAA down to minimum BBB. This information is supplied by independent
rating agencies when available and if not available, the Companies use other publicly available
financial information and its own trading records to rate its major customers. The Companies
exposure and the credit ratings of its counterparties are continuously monitored and the aggregate
value of transactions concluded is spread amongst approved counterparties.
The Companies do not have any significant credit risk exposure to any single counterparty or any
group of counterparties having similar characteristics. The Companies define counterparties as
having similar characteristics if they are related entities. Concentration of credit risk did not exceed
10% of gross monetary assets at any time during the year. The credit risk on liquid funds is limited
because the counterparties are commercial banks with high credit-ratings assigned by international
credit-rating agencies.
years
Five+ years total
Non-interest bearing - $1,061 $ - $ - $ - $ 1,061
Fixed interest rate instruments 6.49% 3,267 202 1,318 22,478 27,265
2006
$4,328 $202 $1,318 $22,478 $28,326
Non-interest bearing - $1,149 $- $- $- $1,149
Fixed interest rate instruments 7.33% 3,486 - 1,563 16,749 21,798
$4,635 $- $1,563 $16,749 $22,947
2007 Annual Report 39