Alternatives asset management business
announces 2025 financial objectives
TORONTO, March 18, 2021 /PRNewswire/ - Sun Life Financial
Inc. (TSX: SLF) (NYSE: SLF) ("Sun Life") is pleased to host SLC
Management Investor Day, where executives will share the strategic
direction of SLC Management, the company's alternatives asset
management business focused on investment grade fixed income,
alternative credit, and real assets. Senior leaders from Sun Life
and SLC Management, including its investment managers, will present
on the firm's broad suite of investment capabilities, solutions and
opportunities for continued growth.
SLC Management will also announce 2025 objectives of
$225 billion in assets under
management (AUM), $225 million of
underlying net income and an operating margin of 30-35%.
"Since our inception seven years ago as a start-up Canadian
asset manager, SLC Management has truly become a global
organization of scale," said Steve
Peacher, President, SLC Management. "In 2016, we set a
target of reaching $100 billion in
AUM by 2020. Today, SLC Management, including its investment
managers, BentallGreenOak, InfraRed Capital Partners and Crescent
Capital, manage $145 billion in
assets for over 1,300 institutional Clients around the world. In
this low-rate environment, we are poised to continue to deliver
yield, total return and diversification to meet our Clients'
financial objectives."
SLC Management reached a milestone earlier this year with the
addition of Crescent Capital, rounding out their set of alternative
investment solutions for Clients. Since 2014, Sun Life has acquired
six firms that have been added under the SLC Management umbrella,
building a leading alternatives and fixed income asset manager.
Now, SLC Management will focus on maximizing the capabilities that
the firm has built and acquired over the past several years, while
creating new strategies for Clients.
Sun Life's ability to co-invest in SLC Management's solutions is
a key part of their growth strategy and a point of differentiation
for the firm.
"From the beginning, our goal was to create an asset manager
that offered to its institutional Clients the same types of
investment strategies that we utilize in our General Account at Sun
Life," added Peacher. "We view this as a win-win-win, as it allows
us to create alignment with our Clients, provide additional sources
of return and diversification for Sun Life, and spur the growth of
new solutions at SLC Management."
Sustainability is also a key component of SLC Management's
strategy. SLC Management, BentallGreenOak, InfraRed Capital
Partners and Crescent Capital are all signatories to the Principles
of Responsible Investing. BentallGreenOak has consistently been
recognized as a global leader for its sustainable practices in
developing, owning and managing commercial real estate, and
InfraRed Capital Partners is a leading investor in renewable energy
and other climate-friendly infrastructure projects. For 12
consecutive years, Sun Life has been named as one of the Top 100
Most Sustainable Companies in the World by Corporate Knights*. The
credentials and capabilities of SLC Management continue to bolster
Sun Life's sustainability efforts.
To learn more about SLC Management's growth and strategy, please
view the Investor Day presentation and webcast here.
About Sun Life
Sun Life is a leading international financial services
organization providing insurance, wealth and asset management
solutions to individual and corporate Clients. Sun Life has
operations in a number of markets worldwide, including Canada, the United
States, the United Kingdom,
Ireland, Hong Kong, the
Philippines, Japan,
Indonesia, India, China,
Australia, Singapore, Vietnam, Malaysia and Bermuda. As of December
31, 2020, Sun Life had total assets under management of
$1,247 billion. For more information
please visit www.sunlife.com.
Sun Life Financial Inc. trades on the Toronto (TSX), New
York (NYSE) and Philippine (PSE) stock exchanges under the
ticker symbol SLF.
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, real estate equity and debt and
infrastructure.
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, InfraRed Capital Partners (InfraRed) and
Crescent Capital Group (Crescent) are also part of SLC Management.
BentallGreenOak is a leading, global real estate investment manager
and a provider of real estate services. InfraRed is an
international investment manager focused on infrastructure,
managing equity capital in multiple private and listed funds. One
of the longest tenured credit managers in the industry, Crescent is
a leading global investor in mezzanine debt, middle market direct
lending in the U.S. and Europe,
high-yield bonds and broadly syndicated loans.
As of December 31, 2020, SLC
Management has assets under management of C$303 billion (US$238
billion) including both third-party assets and Sun Life's
general account.
For more information, please visit slcmanagement.com.
Medium-Term Financial Objectives
SLC Management's medium-term financial objectives are
forward-looking non-IFRS financial measures. Our ability to achieve
those objectives is dependent on our success in achieving growth
initiatives and business objectives that are described in the
Investor Day presentations, which are based on certain key
assumptions, including but not limited to, growth of existing and
successive funds, demand for our products, achievement of
performance targets, and limited change to fees for products.
Although considered reasonable by SLC Management , we may not be
able to achieve our medium-term financial objectives as the
assumptions on which these objectives were based on may prove to be
inaccurate. Accordingly, our actual results could differ materially
from our medium-term financial objectives as described in this news
release and the Investor Day presentations. Our medium-term
financial objectives do not constitute guidance.
Non-IFRS Financial Measures
Assets Under Management (AUM), operating margin, and underlying
net income are Non-IFRS financial measures.
We report certain financial information using non-IFRS financial
measures, as we believe that these measures provide information
that is useful to investors in understanding our performance and
facilitate a comparison of our quarterly and full year results from
period to period. These non-IFRS financial measures do not have any
standardized meaning and may not be comparable with similar
measures used by other companies. For certain non-IFRS financial
measures, there are no directly comparable amounts under IFRS.
These non-IFRS financial measures should not be viewed as
alternatives to measures of financial performance determined in
accordance with IFRS. Additional information concerning these
non-IFRS financial measures and reconciliations to the closest IFRS
measures are included in the Annual MD&A and the Supplementary
Financial Information packages that are available on
www.sunlife.com under Investors – Financial results &
reports.
All factors discussed in this news release and the Investor Day
presentations that impact our underlying net income are also
applicable to reported net income.
Forward-Looking Statement
In this news release, "we", "our" and "us" refer to SLC
Management and its investment managers, BentallGreenOak
(BentallGreenOak includes BentallGreenOak (Canada) Limited Partnership, BentallGreenOak
(U.S.) Limited Partnership, their worldwide subsidiaries, and the
real estate and commercial mortgage investment groups of certain of
their affiliates), InfraRed Capital Partners and Crescent Capital
Group. Certain statements in this news release are
forward-looking, including, but not limited to, statements (i)
relating to our growth strategies and strategic objectives, (ii)
relating to our anticipated sustainable investment commitments,
(iii) that are not historical or that are predictive in nature or
that depend upon or refer to future events or conditions, and (iv)
that include words such as "intends to", "will", "targeted" and
similar expressions. All such forward-looking statements are
made pursuant to the "safe harbour provisions" of applicable
Canadian securities laws and of the United States Private
Securities Litigation Reform Act of 1995. The forward-looking
statements in this news release represent our current expectations,
estimates and projections regarding future events as of the time of
this news release and are not historical facts. These
forward-looking statements are not a guarantee of future
performance and involve risks and uncertainties and are based on
key factors and assumptions that are difficult to predict. Some of
these assumptions and risks and uncertainties are described further
in Sun Life's management's discussion and analysis for the year
ended December 31, 2020 under the
heading "Forward-looking Statements", in the risk factors set out
in Sun Life's annual information form for the year ended
December 31, 2020 under the heading
"Risk Factors", in the other factors detailed in Sun Life's annual
and interim financial statements and in Sun Life's other filings
with Canadian and U.S. securities regulators, which are available
for review at www.sedar.com and www.sec.gov, respectively. Actual
results may differ materially from those expressed, implied or
forecasted in such forward-looking statements.
Except as may be required by Canadian securities laws, we do not
undertake any obligation to update or revise any forward-looking
statements contained in this news release.
Footnotes
*Corporate Knights applies a data driven approach, and assesses
roughly 7,000 companies against global industry peers on a suite of
up to 17 quantitative key performance indicators covering resource,
employee and financial management, green revenue and supplier
performance.
Note to editors: All figures in Canadian
dollars
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SOURCE Sun Life Financial Inc.