Assets of the Funds. The Trust Estate of each Fund shall be held in separate and distinct accounts (directly or indirectly, including through a nominee or otherwise) and accounted for in such separate and distinct records separately from the other assets of the Trust and every other Fund and are referred to as “assets belonging to” that Fund. Except as otherwise set forth herein, the assets belonging to a Fund shall belong only to that Fund for all purposes, and to no other Fund, and shall be subject only to the rights of creditors of that Fund. Any assets, income, earnings, profits, funds, or payments, and proceeds thereof which are not readily identifiable as belonging to any particular Fund shall be allocated to and among one or more Funds in such manner and on such basis as the Sponsor in its sole and absolute discretion deems fair and equitable. Each such allocation shall be conclusive and binding upon the Shareholders of all Funds for all purposes, and such assets, income, earnings, profits, funds, or payments, and proceeds thereof, shall be referred to as assets belonging to that Fund. The assets belonging to a Fund shall be so recorded upon the books of the Trust, and shall be held in trust for the benefit of the Shareholders of such Fund. The assets belonging to a Fund shall be charged with the liabilities of such Fund and all expenses, costs, charges, indemnities and reserves attributable to such Fund.
Assets of the Funds. The assets of the Funds are owned by Sun Life and are segregated from Sun Life’s other assets. The Funds are not separate legal entities. Each Fund is notionally divided into Classes for the purpose of allocating costs. The assets of a Fund are not partitioned, notionally or otherwise, between Classes. Each Class is divided into Units which are allocated to individual Contracts only for the purpose of determining entitlements under those Contracts. Accordingly, a Unit is a notional concept only and you acquire no direct claim on or property interest in the Units of the Fund. Units are allocated to and withdrawn from the Contract according to the terms of the Contract, or as provided or required by law. You have no right to direct the investment of assets in any Fund. You are not a member or shareholder of Sun Life and have no voting rights arising from the Contract or the allocation of Units to the Contract. As well, you are not a unitholder in any Underlying Fund and, accordingly, acquire no right or interest in any such Underlying Fund. The realized earnings of the assets of each Fund will be reinvested in the Fund and will increase the value of its Units. You acquire no direct claim on the Fund assets but only on the benefits under the Contract.
