Sun Life 2012 Annual Report Download - page 56

group held for sale as at December 31, 2012, are impaired mortgages with a net carrying value of $92 million, a gross carrying value of
$115 million and allowance for losses amounting to $23 million. The remaining decline in these balances is primarily due to the sale of
impaired mortgages during the year. The sectoral provision related to mortgages included in the allowance for losses decreased by
$26 million to $42 million, which reflects the sale or workout of a number of distressed loans as well as $12 million included in
mortgages separately disclosed in Assets of disposal group held for sale. Approximately 87.8% of the impaired mortgage loans are in
the United States.
Equities
Our equity portfolio is diversified, and approximately 56.0% of this portfolio is invested in exchange-traded funds. Exchange-traded
fund holdings are primarily in the S&P/TSX 60 Index Fund, Standard & Poor’s Depository Receipts and MSCI EAFE Index Funds. The
carrying value of stocks by issuer country as at December 31 is set out in the following table.
The following table sets out equities by issuer country.
2012(1) 2011(1)
($ millions)
FVTPL
equities
AFS
equities Total
FVTPL
equities
AFS
equities Total
Canada 2,918 106 3,024 2,715 100 2,815
United States 478 578 1,056 458 583 1,041
United Kingdom 172 38 210 174 34 208
Other 601 135 736 384 122 506
Total equity securities 4,169 857 5,026 3,731 839 4,570
(1) Amounts as at December 31, 2012 do not include assets of the Discontinued Operations which are separately disclosed in Assets of disposal group classified as held for
sale. Comparative 2011 amounts have not been restated to reflect this presentation.
As at December 31, 2012, $3.0 billion, or 60.2%, of our equity portfolio consisted of Canadian issuers; $1.1 billion, or 21.0%, of
U.S. issuers; $210 million, or 4.2%, of U.K. issuers; and $736 million, or 14.6%, of issuers from other jurisdictions. Excluding exchange-
traded funds, mutual funds and the equity investment in The Bank of Nova Scotia received as a result of the sale of CI Financial in
2008 ($273 million of preferred shares, or 6%), only one issuer exceeded 1% of the equity portfolio as at December 31, 2012.
Investment Properties
Commercial properties, which consist primarily of office, retail and industrial properties, are the major component of our investment
properties portfolio, representing approximately 85.6% of our investment properties as at December 31, 2012. Our investment
properties are diversified by country, with 75.0% of the portfolio located in Canada, 22.7% in the United States and the remaining 2.3%
in the United Kingdom as at December 31, 2012.
The carrying value of investment properties by type and geographic location as at December 31 is set out in the following table.
2012(1) 2011(1)
Carrying
value
% of total
carrying
value
Carrying
value
% of total
carrying
value
Canada
Office 1,740 29.3% 1,347 25.4%
Industrial 909 15.3% 941 17.7%
Retail 1,021 17.2% 853 16%
Other 784 13.2% 696 13.1%
United States
Office 673 11.3% 562 10.6%
Industrial 268 4.5% 261 4.9%
Retail 345 5.8% 459 8.6%
Other 64 1.1% 30 0.5%
United Kingdom
Office 39 0.6% 41 0.8%
Industrial 22 0.4% 26 0.5%
Retail 71 1.2% 78 1.5%
Other 6 0.1% 19 0.4%
Total investment properties 5,942 100.0% 5,313 100%
(1) Amounts as at December 31, 2012 do not include assets of the Discontinued Operations which are separately disclosed in Assets of disposal group classified as held for
sale. Comparative 2011 amounts have not been restated to reflect this presentation.
54 Sun Life Financial Inc. Annual Report 2012 Management’s Discussion and Analysis