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The carrying value of bonds by issuer and industry sector as at December 31 is shown in the following table:
2010 2009
HFT
Bonds
AFS
Bonds Total
HFT
Bonds
AFS
Bonds Total
Bonds issued or guaranteed by:
Canadian federal government 2,271 1,314 3,585 2,707 397 3,104
Canadian provincial and municipal governments 7,760 176 7,936 6,787 80 6,867
U.S. Treasury and other U.S. agencies 1,901 1,200 3,101 1,441 470 1,911
Other foreign governments 4,732 449 5,181 4,372 519 4,891
Total government issued or guaranteed bonds 16,664 3,139 19,803 15,307 1,466 16,773
Corporate bonds by industry sector:
Financials 10,350 2,899 13,249 11,050 3,403 14,453
Utilities and energy 9,605 1,011 10,616 8,816 1,050 9,866
Telecom 2,076 606 2,682 2,453 797 3,250
Consumer staples and discretionary 6,569 1,367 7,936 5,487 1,337 6,824
Industrials 2,948 558 3,506 2,669 523 3,192
Other 2,911 622 3,533 2,288 495 2,783
Total corporate 34,459 7,063 41,522 32,763 7,605 40,368
Asset-backed securities 3,630 550 4,180 3,564 602 4,166
Total bonds 54,753 10,752 65,505 51,634 9,673 61,307
Our bond portfolio as at December 31, 2010, included $13.3 billion in the financial sector, representing approximately 20% of the bond
portfolio, or 12% of our total invested assets. This compares to $14.5 billion, or 24% of the bond portfolio as at December 31, 2009.
The $1.2 billion decrease in the value of financial sector bond holdings was primarily due to planned reductions of our larger
exposures.
AAA 17% 19%
AA 17% 17%
A 33% 32%
BBB 29% 28%
BB and Lower 4% 4%
Bonds by Investment Grade
20102009
2010 Bonds by Sector
Government – 31% Consumer Staples
and Discretionary – 12%
Utilities & Telecom – 15%
Energy – 6% Industrials – 5%
Other – 5%
Asset-Backed
Securities – 6%
Financials – 20%
The carrying value of bonds by issuer country as at December 31 is shown in the following table.
2010 2009
($ millions)
HFT
Bonds
AFS
Bonds Total
HFT
Bonds
AFS
Bonds Total
Bonds
Canada 21,293 1,964 23,257 20,167 980 21,147
United States 20,817 6,940 27,757 19,037 6,662 25,699
United Kingdom 5,080 392 5,472 5,229 614 5,843
Other 7,563 1,456 9,019 7,201 1,417 8,618
Total Bonds 54,753 10,752 65,505 51,634 9,673 61,307
Management’s Discussion and Analysis Sun Life Financial Inc. Annual Report 2010 53