Sun Life Investment Management is launching three pooled funds that focus on private fixed income, commercial mortgages and real estate assets.
The funds are being launched with portfolios of assets totalling approximately $650 million contributed by Sun Life Assurance Company of Canada and Sun Life Financial and will be offered for sale to Canadian institutional investors that qualify as “permitted clients” under applicable securities legislation.
Following are the funds that Sun Life Investment Management will offer and their initial composition.
- The Sun Life Private Fixed Income Plus Fund will invest primarily in a diverse portfolio of private fixed income and public fixed income assets. The fund has been seeded with private fixed income investments and cash totalling approximately $150 million at March 19, 2014.
- TheSun Life Canadian Commercial Mortgage Fund will invest primarily in a portfolio of fixed-rate first mortgage loans secured by high-quality income-producing office, retail, industrial and multi-family rental properties located in Canadian urban markets. The fund has been seeded with a diversified portfolio of Canadian commercial mortgages totalling approximately $200 million at Feb. 28, 2014.
- The Sun Life Canadian Real Estate Fund will invest primarily in a portfolio of high-quality income-producing real property located in growing Canadian urban markets. The fund has been seeded with a diversified portfolio of Canadian commercial properties with an aggregate value of approximately $300 million at Feb. 28, 2014.
“We have seeded the three funds with a set of quality assets consistent with the mandates of the funds,” said Steve Peacher, president of Sun Life Investment Management and chief investment officer of Sun Life Financial. “With the size and seasoned nature of the portfolios, we believe these funds offer excellent new opportunities for defined benefit plans and other institutional investors interested in private asset classes that offer attractive risk-adjusted returns over the long term.”
The funds will be available starting April 1, 2014.
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