Sun Life Investment Management Inc. is launching three pooled funds that focus on private fixed income investing, commercial mortgages and real estate assets, to be available starting April 1, 2014.
The funds are being launched with portfolios of assets totaling approximately $650 million contributed by Sun Life Assurance Company of Canada and Sun Life Financial Inc., and will be offered for sale to Canadian institutional investors who qualify as “permitted clients” under applicable securities legislation.
“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,” says Steve Peacher, president, Sun Life Investment Management and CIO, Sun Life Financial.
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 PFI investments and cash totaling approximately $150 million at March 19, 2014.
The Sun 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 totaling approximately $200 million at February 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 February 28, 2014.