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Sun Life Financial Inc.’s (NYSE:SLF) move to launch a guaranteed minimum withdrawal benefit [GMWB] product in Canada – a retirement income product that is similar to Manulife Financial Corp.’s IncomePlus product launched last fall, is a positive development for Sun Life, according to Michael Goldberg.

Manulife had $1-billion in sales for its product in the first 19 weeks, the Desjardins Securities analyst said in a note to clients, adding that both companies are using their experience in the U.S. “in pricing and hedging a GMWB product as a foundation in Canada.”

“While there are some differences between the Sun and Manulife products, we believe that they expand the market for this product overall, much more than competing with one another,” Mr. Goldberg said.

Mr. Goldberg has a “buy” rating on Sun Life shares and C$56 price targets, which represents upside of roughly 6%.

Source: Desjardins: Sun Life's New Retirement Income Product To Have Positive Impact