Sun Life Investment Management is to purchase Prime Advisors, an investment management firm specialising in customised fixed-income portfolios, primarily for US insurance companies.
As of 31 May 2015, the firm had approximately US$13bn in assets under management on behalf of clients.
The acquisition is part of Sun Life's strategy to broaden its asset management capabilities by expanding and diversifying the capabilities of Sun Life Investment Management, which provides investment services to third parties and manages Sun Life's general account.
"With its customised approach to liability-based investing for insurance companies, Prime Advisors is a natural fit as we continue to build our Sun Life Investment Management organisation," said Steve Peacher, president, Sun Life Investment Management, and chief investment officer, Sun Life Financial.
"The addition of Prime, together with our recently announced acquisition of Bentall Kennedy and completed acquisition of Ryan Labs Asset Management, will grow Sun Life Investment Management's third-party assets under management to a combined C$50bn (US$40bn) in just over a year, and give us an excellent platform for serving institutional clients and expanding our business in the US."
Following completion of the transaction, Prime will operate as a standalone unit of Sun Life Investment Management. Prime will retain its brand and maintain its offices in Redmond, Washington, and Windsor, Connecticut. It will continue to be managed by its current team, headed by Don McDonald who will report to Steve Peacher.
Sun Life Investment Management is an institutional investment management arm of Sun Life Financial that includes the investment operations of Sun Life Assurance Company of Canada, Sun Life Investment Management in Canada and Ryan Labs Asset Management in the US.
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