$168 bn asset
manager announces the firm's strategy is already two-times
oversubscribed.
NEW YORK, May 18, 2020 /PRNewswire/ - SLC Management,
the $168 billion institutional asset
management business of Sun Life Financial, today announced the
successful closing of their Term Asset-Backed Securities Loan
Facility (TALF) 2020 strategy for institutional investors. SLC
Management previously managed a successful TALF strategy in 2009
under the same portfolio management team, which resulted in an
annual IRR of 21.5%.*
Investors can finance the purchase of high-quality AAA-rated
asset backed securities (ABS) using Federal Government loans for
the period during which the TALF program is available, currently
between June and September 2020. Sun
Life, SLC Management's parent and affiliate, will also be investing
in the strategy. This co-investment reinforces an alignment of
interests among Sun Life, SLC Management and their clients. The SLC
Management TALF 2020 strategy is already two-times
oversubscribed.
"In an unprecedented market environment, TALF 2020 provides the
opportunity to generate strong returns while investing in AAA-rated
securities. We believe this is a compelling risk-adjusted strategy
for our clients," said Chris Adair,
Head of U.S. Business Development and Client Relationships, SLC
Management. "At SLC Management, we've consistently outperformed
benchmarks in investment-grade ABS and securitized credit markets.
Our portfolio management team successfully managed the TALF program
in 2009 and they will apply a similar philosophy and consistent
approach to our 2020 strategy. We believe this direct experience
will be a critical factor to ensuring its success."
The Federal Reserve's TALF 2020 program is designed to ensure
the continued flow of consumer credit during the COVID-19 crisis.
The Fed will facilitate this by extending up to $100 billion in non-recourse loans to investors
in certain AAA-rated ABS and Commercial Mortgage Backed Securities
(CMBS). Investors' success may be determined by several factors
including the expert evaluation of credit risk and their ability to
participate in the TALF program at the earliest possible date to
take advantage of prevailing credit spread dislocations.
Daniel Lucey and Phil Mendonca, co-portfolio managers on SLC
Management's Total Return Fixed Income team, will manage the firm's
TALF 2020 strategy. Both managers oversaw the TALF 2009
strategy.
"Based on our experience in 2009, we know TALF provides a great
opportunity for our clients," said Daniel
Lucey, Managing Director and Senior Portfolio Manager, Total
Return Fixed Income, SLC Management. "With our long track-record of
success and our confidence in the relative value of AAA-rated ABS
and CMBS, we're excited to be able to bring this opportunity to
institutional investors."
SLC Management also believes the securitized sector of the
market currently offers attractive opportunities outside of the
TALF program. Under current guidance, TALF eligible assets are
restricted to AAA-rated securities. However, outside of the
AAA-rated segment, recent volatility has led to significant spread
widening in a number of other investment grade securitized sectors.
SLC Management has been working with clients and prospects to try
to take advantage of these dislocations through opportunistic
securitized portfolios.
About SLC Management
SLC Management is a global
institutional asset manager that offers institutional investors
traditional, alternative, and yield-orientated investment solutions
across public and private fixed income markets, as well as global
real estate equity and debt. SLC Management is the brand name for
the institutional asset management business of Sun Life Financial
Inc. ("Sun Life") under which Sun Life Capital Management (U.S.)
LLC in the United States, and Sun
Life Capital Management (Canada)
Inc. in Canada operate.
BentallGreenOak is also part of SLC Management and is a leading,
global real estate investment management advisor and a
globally-recognized provider of real estate services. As of
March 31, 2020, SLC Management has
assets under management of C$236
billion (US$168 billion).
Media Relations Contact:
Hannah Stewart
Associate Director, Communications
SLC Management
T. 416-557-4428
hannah.stewart@slcmanagement.com
* The TALF 2009 was offered by Ryan Labs Asset Management which
is now Sun Life Capital Management (U.S.) LLC, an SLC Management
company. Investment-grade ABS and securitized credit markets
performance reflects the experience of Ryan Labs Asset Management,
which is now Sun Life Capital Management (U.S.) LLC, an SLC
Management company.
This document is intended for institutional investors only. The
information in this presentation is not intended to provide
specific financial, tax, investment, insurance, legal or accounting
advice and should not be relied upon and does not constitute a
specific offer to buy and/or sell securities, insurance or
investment services. Investors should consult with their
professional advisors before acting upon any information contained
in this presentation.
Sun Life Capital Management (Canada) Inc. is a Canadian registered
portfolio manager, investment fund manager, exempt market dealer
and in Ontario, a commodity
trading manager. Sun Life Capital Management (U.S.) LLC is
registered with the U.S. Securities and Exchange Commission as an
investment adviser and is also a Commodity Trading Advisor and
Commodity Pool Operator registered with the Commodity Futures
Trading Commission under the Commodity Exchange Act and Members of
the National Futures Association.
The strategy is managed by Sun Life Capital Management (U.S.)
LLC, and for Canadian prospects, is distributed by Sun Life
Capital Management (Canada)
Inc.
Unless otherwise noted, all references to "$" are in U.S.
dollars.
Past performance is not a guarantee of future results.
Nothing in this document should (i) be construed to cause any of
the operations under SLC Management to be an investment advisory
fiduciary under the U.S. Employee Retirement Income Security Act of
1974, as amended, the U.S. Internal Revenue Code of 1986, as
amended, or similar law, (ii) be considered individualized
investment advice to plan assets based on the particular needs of a
plan or (iii) serve as a primary basis for investment decisions
with respect to plan assets.
This document may present materials or statements which reflect
expectations or forecasts of future events. Such forward-looking
statements are speculative in nature and may be subject to risks,
uncertainties and assumptions and actual results which could differ
significantly from the statements. As such, do not place undue
reliance upon such forward-looking statements. All opinions and
commentary are subject to change without notice and are provided in
good faith without legal responsibility. Unless otherwise stated,
all figures and estimates provided have been sourced internally and
are current as at the date of the presentation unless separately
stated. All data is subject to change.
No part of this material may, without SLC Management's prior
written consent, be (i) copied, photocopied or duplicated in any
form, by any means, or (ii) distributed to any person that is not
an employee, officer, director, or authorized agent of the
recipient.
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SOURCE SLC Management