Sun Life Financial Inc. (TSX: SLF) (NYSE: SLF) today announced the completion of its acquisition of a 51%1 stake in Advisors Asset Management, Inc., a leading independent U.S. retail distribution firm. AAM will be part of SLC Management, Sun Life’s institutional fixed income and alternatives asset manager. AAM will become the U.S. retail distribution arm of SLC Management.
AAM provides a range of solutions and products to financial advisors at wirehouses, registered investment advisors and independent broker-dealers. AAM will have exclusive rights to market and promote SLC Management’s specified alternative investment products to the U.S. retail market. AAM oversees US$40.5 billion (approximately C$55 billion) in assets as of December 31, 2022. With 10 offices across nine U.S. states, AAM has a team of more than 270 professionals.
With the growing demand among high-net-worth (“HNW”) retail investors for alternative assets in the U.S., the acquisition of a majority stake in AAM will allow SLC Management and its affiliated investment managers, BentallGreenOak, Crescent Capital Group and InfraRed Capital Partners, to offer their investment strategies to the U.S. HNW market. The transaction is also strategic for AAM, which will expand its product roster to include a range of alternative products in commercial real estate, private credit and infrastructure.
The transaction includes a put / call option, pursuant to which Sun Life may acquire the remaining outstanding ownership interests of AAM starting in 2028. AAM will continue to operate under its current leadership and will retain its individual brand, office locations and clients.
About Sun Life
Sun Life is a leading international financial services organization providing asset management, wealth, insurance and health solutions to individual and institutional 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 September 30, 2022, Sun Life had total assets under management of $1.27 trillion. 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, 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. under which the entities of Sun Life Capital Management (U.S.) LLC in the United States, and Sun Life Capital Management (Canada) Inc. in Canada operate. These entities are also referred to as SLC Fixed Income and represent the investment grade public and private fixed income strategies of SLC Management.
