Sun Life Financial acquires NYC-based Ryan Labs Asset Management

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Sun Life Financial Inc. - Financial News

Jan 28, 2015, 09:30 ET

Expands Sun Life Investment Management's third-party business in the U.S.

TORONTO and NEW YORK CITY, Jan. 28, 2015 /PRNewswire/ - Sun Life Investment Management and Ryan Labs Asset Management announced today an agreement whereby Sun Life Financial Inc. (TSX: SLF) (NYSE: SLF) will purchase Ryan Labs Inc. of New York City from the firm's current owners. The transaction is expected to close in the first quarter of 2015, subject to regulatory approval and customary closing conditions, and is not material to the results of Sun Life Financial Inc.

Founded in 1988 and known by the brand name Ryan Labs Asset Management, the firm specializes in liability driven investing (LDI) and total return fixed income strategies. Ryan Labs LDI solutions are actively managed and are customized to meet the unique risk management goals of defined benefit pension funds and other institutional clients. Ryan Labs has approximately US$5.1 billion in assets under management (AUM) for clients across the United States. Following completion of the transaction, the firm will operate as a unit of Sun Life Investment Management, which offers investment solutions to liability-based institutional investors. Sun Life Investment Management launched its third-party business in Canada in 2014, and the addition of Ryan Labs will extend its footprint in the U.S.

Ryan Labs will retain its brand name and will maintain the location of its headquarters at 500 Fifth Avenue in New York City. Its operations will continue to be managed by its current team, headed by President, Sean McShea. McShea will report to Steve Peacher, President, Sun Life Investment Management and Chief Investment Officer, Sun Life Financial.

"Bringing an established and innovative firm like Ryan Labs into our family is a significant first step in building Sun Life Investment Management's third-party business in the U.S.," Peacher said. "They have a first-rate track record and share our focus on bringing value for liability driven investors."

"We are pleased to join forces with such a strong, well-respected company as Sun Life who share our commitment to servicing the unique needs of liability-focused and other institutional investors," McShea said. "It will be business as usual as we continue to deliver for our clients. Moving forward, we will benefit from the resources and support of Sun Life as we continue to develop and grow our business."

"We've had a great start in Canada with the launch of Sun Life Investment Management Inc.'s private asset class funds and LDI strategies, and the U.S. acquisition announced today is the next step in our growth," Peacher said. "The transaction is also a perfect fit within the asset management pillar of Sun Life Financial's four-pillar enterprise strategy."

Berkshire Capital Securities LLC served as financial advisor and Weil, Gotshal & Manges LLP as legal advisor to Sun Life Financial Inc. Corporate Partners LLC served as financial advisor and Arnold & Porter LLP as legal advisor to Ryan Labs Inc.

About Ryan Labs Asset Management
Ryan Labs Asset Management specializes in managing fixed income portfolios for institutional clients. Its platform includes liability driven investing strategies managed versus a Custom Liability Index® and total return strategies managed against traditional fixed income benchmarks. In 1991, Ryan Labs became the first asset manager to create and manage a bond portfolio versus a daily Custom Liability Index® consistent with FAS 158 accounting standards.

For further information about Ryan Labs Asset Management and its offerings, please visit www.ryanlabs.com.

About Sun Life Investment Management
Sun Life Investment Management is the corporate brand name for an institutional investment management arm of Sun Life Financial that includes the investment operations of Sun Life Assurance Company of Canada that manages assets for its affiliated insurance companies, as well as Sun Life Investment Management Inc.

Sun Life Investment Management Inc. provides investment solutions for defined benefit pension plans and other institutional investors in Canada, specializing in private asset class funds and liability driven investment strategies. It is registered with the Canadian securities commissions and regulatory authorities as a Portfolio Manager, Investment Fund Manager, and Exempt Market Dealer.

Further information about Sun Life Investment Management Inc. and its offerings is available at www.sunlifeinvestmentmanagement.com.

About Sun Life Financial
Celebrating 150 years in 2015, Sun Life Financial is a leading international financial services organization providing a diverse range of protection and wealth products and services to individuals and corporate customers. Sun Life Financial and its partners have operations in key 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, 2014 the Sun Life Financial group of companies had total assets under management of $698 billion. For more information please visit www.sunlife.com.