Offering a spectrum of solutions across traditional and alternative asset classes.
Public Fixed Income
- Consistent income: Public fixed income investments provide institutional investors with a consistent stream of income, with generally less volatility than equity market investments.
- Liquidity: Public fixed income investments trade on secondary markets and can be bought and sold at any time.
- Use in liability matching strategies: Public fixed income investments can play a central role in liability-driven investing strategies for pension plans, insurance companies and other institutional investors.
- Dedicated credit teams organized by global credit sectors, with over 200 investment professionals covering world markets.
- Integrated process that combines deep bottom-up fundamental research capabilities, with a comprehensive understanding of sectors and credit, with a well-informed top-down macro view assessing credit cycle risks and economic factors. The result is consistent alpha generation, and the potential to achieve superior risk-adjusted returns for our clients.
- Manage one of the largest life insurance balance sheets in North America, with extensive expertise in investing assets to align with liabilities and generate enhanced yields.
- Strong relationships with investment dealers and corporate management teams, analyzing both credit fundamentals and the management team behind those fundamentals.
- Experience in blending investment grade fixed income portfolios and private asset classes, with a goal of providing sustainable excess yield and diversification over comparably rated public market investments.
* Investment professionals include Portfolio Managers, Traders, Research Analysts, Portfolio Strategists, and Investment Strategists under SLC Management which includes: SLC Management (Canada) Inc., SLC Management (U.S.) LLC, Sun Life Investment Division, Ryan Labs Asset Management, Prime Advisors, Inc.
Private Fixed Income
- Yield: A combination of the illiquidity premium and bespoke nature of private placements relative to public bonds allow private placement investors to capture a spread premium over comparable public issuers or indices, as well as the potential for additional income associated with consents, amendments and, in some cases, coupon increases.
- Diversification: The private placement market offers investors the opportunity to invest in unique transactions and issuers not available to public bond investors.
- Risk management: Private placement investors benefit from deal structures that are typically more robust than public market transactions, including collateral and financial covenants that allow investors to get back to the negotiating table in the event of credit deterioration.
Our scale, broad sector focus, and highly experienced professionals allow us to find unique opportunities from a variety of sources.
- We have one of the largest private placement teams in North America, with 55 investment professionals averaging 17 years of experience.
- Our scale provides us with access to deals that are inaccessible to smaller and less experienced investors.
- Our clients are co-investors with the Sun Life companies’ General Accounts, so our interests are aligned. Our clients benefit from access to a broad universe of investment opportunities and the investment management expertise of our global team.
Private fixed income investments can meet the needs of both open and hibernating pension plans, and other institutional investors. Strategies can be customized in many ways, including credit quality, length of term, currency and geographic location. We seek excess spread through complex transactions and niche sectors.
- Project finance – long-term infrastructure such as hydro, wind, solar power, plus a range of public private partnership projects.
- Corporate finance – medium-term financing through senior secured or unsecured financing to larger borrowers with revenues in excess of $500 million, including companies in food and beverage, aviation, and asset management.
- Private real estate finance – lending to finance real estate development, such as credit tenant leases, ground leases, and secured term loans.
- Mid-market finance – lending to mid-market companies with revenues generally less than $500 million, including companies in transportation, industrial services, and long-term care.
- Private securitization finance – leases or loans purchased from small and medium-sized leasing companies.
* Investment professionals include Portfolio Managers, Traders, and Research Analysts under SLC Management which includes: SLC Management (Canada) Inc., SLC Management (U.S.) LLC, and the Sun Life Investment Division.
Real Estate Equity Investments
We offer real estate equity and debt investments through Bentall Kennedy, an SLC Management company. Bentall Kennedy is one of the largest* global real estate investment advisors and one of North America’s foremost providers of real estate services. In Canada, the firm offers property management, leasing and development services, and asset and portfolio management through funds and separate accounts. In the U.S., they provide a full range of real estate related investment advisory services to clients coast-to-coast, through funds and separate accounts.
For more information about Bentall Kennedy Real Estate Equity investments and Property Management services please visit www.bentallkennedy.com.
Real Estate Debt Investments – Commercial Mortgage Loans
These fixed-rate, first-mortgage loans are generally secured by high quality office, retail, industrial or multi-tenant residential buildings properties located in urban markets with strong long-term economic and demographic growth prospects.
The properties are owned by well capitalized, experienced real estate investors that employ professional property managers. The properties have low vacancies, are occupied by a diversified and financially sound tenant base – and have loan-to-value and debt service coverage metrics that provide a sizable cushion to our organization as lender.
- Enhanced yield: Commercial mortgage loans have consistently generated a spread premium over comparably rated public bonds.
- Diversification: Commercial mortgage loans have demonstrated moderate to low correlation to traditional fixed income asset classes, as well as real estate equity.
- Reduced volatility: Commercial mortgage loan cash flows can be less susceptible to event risk, given that revenues are derived from multiple tenants and diversified by industry and geography. Downside protection can be achieved through the structuring of additional credit enhancements to mitigate any perceived cash flow risks.
- The team has more than 60 years of lending experience, with over 53 investment professionals integrated across origination, asset management, asset servicing and credit risk.
- With a dedicated in-house origination team and a national correspondent network with local representation in over 35 U.S. markets, this “feet on the street” approach ensures embedded local and regional expertise, and access to relevant deals in core markets.
- Repeat business accounts for a high percentage of deal origination – which may result in higher spreads and improved loan metrics.