The new product, geared towards institutional investors, offers a specialized alternative source of yield
Sun Life Institutional Investments (Canada) Inc. has launched a new fund offering that focuses on short-term private fixed income for Canadian institutional investors. Called the Sun Life Short Term Private Fixed Income Plus Fund, it provides access to proprietary capabilities in private fixed income and commercial mortgages.
"The persisting low-rate environment has generated increased appetite for alternative yield," said Carl Bang, president of Sun Life Institutional Investments (Canada) Inc. "Our first capital raise of $550 million for the Sun Life Short Term Private Fixed Income Plus Fund resulted in excess demand of $350 million. Clearly the market is hungry for this solution, and we are eager to put money at work against opportunities we see in the market presently."
Incorporating input from clients and designed to address near-term need for higher-yielding returns, the fund will seek higher-yielding assets via Sun Life’s market position and developed investment franchise in private fixed income and commercial mortgages.
By investing in a diverse basked of short-term private and public fixed-income and floating rate assets, the fund seeks to achieve returns benchmarked against the FTSE TMX Canada Short Term Corporate Bond Index.
"Listening to our clients, we leveraged the in-house expertise of Sun Life's private fixed income and commercial mortgage teams to bring this specialized solution to the market. I am proud that this fund is the first and only of its kind available to institutional investors in Canada, that I am aware of," Bang said.
The Sun Life Short Term Private Fixed Income Plus Fund rounds out a unique suite of private asset class solutions, which also includes the Sun Life Private Fixed Income Plus Fund and the Sun Life Canadian Commercial Mortgage Fund.
Related stories:
Sun Life profits take a hit from low interest rates
Sun Life enhances currency hedged series offering
"The persisting low-rate environment has generated increased appetite for alternative yield," said Carl Bang, president of Sun Life Institutional Investments (Canada) Inc. "Our first capital raise of $550 million for the Sun Life Short Term Private Fixed Income Plus Fund resulted in excess demand of $350 million. Clearly the market is hungry for this solution, and we are eager to put money at work against opportunities we see in the market presently."
Incorporating input from clients and designed to address near-term need for higher-yielding returns, the fund will seek higher-yielding assets via Sun Life’s market position and developed investment franchise in private fixed income and commercial mortgages.
By investing in a diverse basked of short-term private and public fixed-income and floating rate assets, the fund seeks to achieve returns benchmarked against the FTSE TMX Canada Short Term Corporate Bond Index.
"Listening to our clients, we leveraged the in-house expertise of Sun Life's private fixed income and commercial mortgage teams to bring this specialized solution to the market. I am proud that this fund is the first and only of its kind available to institutional investors in Canada, that I am aware of," Bang said.
The Sun Life Short Term Private Fixed Income Plus Fund rounds out a unique suite of private asset class solutions, which also includes the Sun Life Private Fixed Income Plus Fund and the Sun Life Canadian Commercial Mortgage Fund.
Related stories:
Sun Life profits take a hit from low interest rates
Sun Life enhances currency hedged series offering
