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Debt Securities by Issuer and Industry Sector
December 31, 2015 December 31, 2014
($ millions)
FVTPL debt
securities
AFS debt
securities Total
FVTPL debt
securities
AFS debt
securities Total
Debt securities issued or guaranteed by:
Canadian federal government 2,383 1,637 4,020 1,831 1,717 3,548
Canadian provincial and municipal
government 10,555 836 11,391 10,335 768 11,103
U.S. government and agency 1,272 430 1,702 1,183 406 1,589
Other foreign government 5,916 738 6,654 5,305 536 5,841
Total government issued or guaranteed debt
securities 20,126 3,641 23,767 18,654 3,427 22,081
Corporate debt securities by industry sector:
Financials 9,905 2,351 12,256 9,510 3,034 12,544
Utilities 6,628 646 7,274 6,164 578 6,742
Consumer discretionary 2,375 893 3,268 2,746 992 3,738
Industrials 3,880 847 4,727 2,911 576 3,487
Consumer staples 2,100 580 2,680 2,175 564 2,739
Telecommunication services 1,859 372 2,231 1,708 516 2,224
Energy 3,727 831 4,558 3,714 806 4,520
Materials 1,249 319 1,568 1,331 400 1,731
Other 1,945 687 2,632 1,402 562 1,964
Total corporate debt securities 33,668 7,526 41,194 31,661 8,028 39,689
Asset-backed securities 2,991 1,944 4,935 2,812 1,632 4,444
Total debt securities 56,785 13,111 69,896 53,127 13,087 66,214
Our debt securities as at December 31, 2015 included $12.3 billion invested in the financial sector, representing approximately 17.5%
of our total debt securities, or 8.9% of our total invested assets. This compares to $12.5 billion, or 18.9% of the total debt security
portfolio, or 10.0% of our total invested assets as at December 31, 2014.
Our debt securities as at December 31, 2015 included $4.9 billion of asset-backed securities reported at fair value, representing 7.1%
of our total debt securities, or 3.6% of our total invested assets. This compares to $4.4 billion representing 6.7% of total debt securities,
or 3.6% of our total invested assets as at December 31, 2014.
The credit risk ratings in the following table were established in accordance with the process described in this MD&A under the heading
Risk Categories - Credit Risk Management Governance and Control.
Debt Securities by Credit Rating
December 31, 2015 December 31, 2014
($ millions)
FVTPL debt
securities
AFS debt
securities Total
FVTPL debt
securities
AFS debt
securities Total
Debt securities by credit rating:
AAA 8,684 4,283 12,967 7,317 3,975 11,292
AA 10,046 1,189 11,235 10,201 1,620 11,821
A19,526 3,709 23,235 18,068 3,786 21,854
BBB 16,974 3,316 20,290 16,259 3,218 19,477
BB and lower 1,555 614 2,169 1,282 488 1,770
Total debt securities 56,785 13,111 69,896 53,127 13,087 66,214
Debt Securities by Geography
December 31, 2015 December 31, 2014
($ millions)
FVTPL debt
securities
AFS debt
securities Total
FVTPL debt
securities
AFS debt
securities Total
Debt securities
Canada 20,400 3,373 23,773 20,008 3,779 23,787
United States 20,432 6,546 26,978 17,978 6,100 24,078
United Kingdom 6,416 662 7,078 6,286 805 7,091
Other 9,537 2,530 12,067 8,855 2,403 11,258
Total debt securities 56,785 13,111 69,896 53,127 13,087 66,214
Management’s Discussion and Analysis Sun Life Financial Inc. Annual Report 2015 49