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2022 Mid-year Global Investment Outlook
August 18, 2022
2022 Mid-year Global Investment Outlook
We are pleased to present our first-ever mid-year investment outlook for 2022. This report includes our macroeconomic views for the rest of the year, as well as our expectations for public and private fixed income, real estate, infrastructure, insurance asset management, and retirement plan solutions.
Our investment professionals across SLC Management, BentallGreenOak, InfraRed, and Crescent Capital are specialists in their respective asset classes, and are uniquely qualified to provide specific, actionable insights across this diverse range of traditional and alternative investments. In the Investment Outlook, we reflect on what surprised us so far in 2022 and what clients and consultants should be thinking about during the rest of the year ahead.
A letter from Steve Peacher
Inflation and geopolitical unrest are having a domino effect across global economies. The onus is on central banks across the globe to deliver a soft landing.
Fixed income: investment grade:
Inflation risk is real and bond markets are taking notice, but attractive relative yields present an opportunity for investors.
Fixed income: below investment grade:
Interest rate hikes prompted inflows into floating rate bank loans and significant outflows from fixed rate high yield bonds. While credit fundamentals are strong, the risk of continued geopolitical unrest and potential central bank missteps remain key risks.
Private credit: investment grade:
Investment grade private credit continues to see inflows despite economic uncertainty. A shift in investor profile has impacted the types of deals and access available to investors, but unique opportunities are expected throughout the balance of the year.
Private credit: below investment grade:
Well-sourced and vetted private credit opportunities remain an attractive investment.
Investors with long investment horizons may find opportunities in private real estate amid the current market volatility.
Demand for infrastructure investments will likely increase, across both traditional and non-traditional projects, but investors should be aware of supply chain constraints.
Insurance asset management:
Insurance company portfolios have taken a hit on both sides of their balance sheets due to high inflation and rising interest rates so far in 2022. Higher reinvestment yields, a comeback for tax-exempt municipal bonds, and opportunities in alternatives can provide a silver lining for investors.
Retirement plan solutions:
Amid market volatility, pension plan sponsors are seeing their funded status climb. It will be important to revisit de-risking strategies and review opportunities to incorporate higher yielding alternatives.
Steve Peacher President SLC Management
“ … As Einstein once wrote, “In the midst of every crisis, lies great opportunity.” We believe this sentiment is particularly true for investors who are willing to adhere to a disciplined, long-term investment strategy. Over time, financial markets tend to reward investors who can endure unexpected periods of volatility and remain committed to their financial objectives. Our role as an investment manager is to walk that sometimes challenging path with you, and to offer as much guidance and insight as we can along the way. …”
Steve Peacher President SLC Management
Dec Mullarkey Managing Director, Investment Strategy and Asset Allocation SLC Management
Randall Malcolm Senior Managing Director, Portfolio Manager, Public Fixed Income SLC Fixed Income
John Fekete Managing Director, Head of Capital Markets Crescent Capital Group
Andrew Kleeman Senior Managing Director, Head of Corporate Private Placements SLC Fixed Income
Elaad Keren Senior Managing Director, Portfolio Manager and Head of Mid-Market Private Debt SLC Fixed Income
Gary Greaves Managing Director, Private Fixed Income SLC Fixed Income
Chris Wright Managing Director and Head of Private Markets Crescent Capital Group
Chris Wang Managing Director, Credit Solutions Crescent Capital Group
Phil Stone Head of Canada Research BentallGreenOak
Christina Iacoucci Managing Partner, Canadian Chief Investment Officer, and Head of Investment Management BentallGreenOak
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.
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.
BentallGreenOak, InfraRed Capital Partners (InfraRed) and Crescent Capital Group (Crescent) are also part of SLC Management.
Bentall Green Oak is a global real estate investment management advisor and a provider of real estate services. In the U.S., real estate mandates are offered by BentallGreenOak (U.S.) Limited Partnership, who is registered with the SEC as an investment adviser, or Sun Life Institutional Distributors (U.S.) LLC, an SEC registered broker-dealer and a member of the Financial Industry Regulatory Authority (“FINRA”) . In Canada, real estate mandates are offered by BentallGreenOak (Canada) Limited Partnership, BGO Capital (Canada) Inc. or Sun Life Capital Management (Canada) Inc. BGO Capital (Canada) Inc. is a Canadian registered portfolio manager and exempt market dealer and is registered as an investment fund manager in British Columbia, Ontario and Quebec.
InfraRed Capital Partners is an international investment manager focused on infrastructure. Operating worldwide, InfraRed manages equity capital in multiple private and listed funds, primarily for institutional investors across the globe. InfraRed Capital Partners Ltd. is authorized and regulated in the UK by the Financial Conduct Authority.
Crescent Capital Group is a global alternative credit investment asset manager registered with the U.S. Securities and Exchange Commission as an investment adviser. Crescent provides private credit financing (including senior, unitranche and junior debt) to middle-market companies in the U.S. and Europe, and invests in high-yield bonds and broadly syndicated loans.
Securities will only be offered and sold in compliance with applicable securities laws.
The content of this website is intended for institutional investors only. It is not for retail use or distribution to individual investors. All investments involve risk including the possible loss of capital. This website is for informational and educational purposes only. Past performance is not a guarantee of future results.
The information contained in this website 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 on this website. The assets under management (AUM) represent the combined AUM of Sun Life Capital Management (Canada) Inc., Sun Life Capital Management (U.S) LLC, BentallGreenOak and InfraRed Capital Partners.
Total AUM includes approximately $9B in cash, other, and unfunded commitments.
UK Tax Strategy - InfraRed (UK) Holdco 2020 Limited
InfraRed (UK) Holdco 2020 Ltd is the UK holding company of InfraRed Partners LLP and a subsidiary of Sun Life (U.S.) Holdco 2020 Inc, which has its headquarters in the U.S. The company was incorporated to purchase InfraRed Partners LLP and acts solely as a passive holding company. The Tax Strategy for the InfraRed Holdco Group sets out our approach to the management of InfraRed Holdco Group UK tax affairs in supporting business activities in the UK.
This UK tax strategy is published in accordance with the requirements set out in Schedule 19 of Finance Act 2016. The strategy, which has been approved by the Board of Directors of InfraRed (UK) Holdco 2020 Ltd, is effective for the period ending 31 December 2022. It applies to InfraRed (UK) Holdco 2020 Ltd and its dormant subsidiary Sun Life (UK) Designated Member Ltd, referred to as the “InfraRed Holdco Group”. InfraRed Holdco Group.