One of the country’s largest insurance companies is getting back into the mutual fund business in Canada.
Sun Life Financial is launching a new series of mutual funds in Canada under the banner of Sun Life Global Investments (Canada) Inc. Rick Headrick, president of the new investment company, was in Vancouver Wednesday for the company’s gala launch.
In an interview with BIV, Headrick noted Sun Life was re-entering the mutual fund management arena to expand the company’s wealth management business in Canada.
Two years ago, it sold its stake in CI Financial, one of Canada’s largest independent mutual fund companies, to Scotiabank for $2.3 billion to free up funds for its hunt for acquisitions following the global financial crisis.
The company will be launching seven new funds starting October 25, which includes two global equity funds, two U.S. equity funds, and two international equity funds, all managed by Boston-based MFS Investment Management. It’s new money market fund will be managed by McLean Budden Ltd. The funds will be available not only to Sun Life advisers but other registered advisers in Canada.
Headrick said starting new funds from scratch will be a challenge since they will not have much of a track record. However, he said, the funds’ managers have their own extensive track record and bring new investment expertise to Canadians.
MFS, for example, which created the first mutual fund in the U.S. in 1924, now has more than US$195 billion in assets under management, and has been recognized for its strong fund performance by Morningstar.
The move will also tap Sun Life’s growing global network of financial and investment expertise, with MFS, McLean Budden as well as Sun Capital Advisers LLC, all affiliated with Sun Life Financial.
“We’re going to be providing greater access of investment managers located from around the world, as well as more choice of investment solutions that are not in Canada at this time.”