Unique relationship brings together two of Canada’s most prominent financial services firms
TORONTO, Oct. 10, 2023 /CNW/ – Scotiabank Global Wealth Management and Sun Life Capital Management (SLC Management) today announced plans to develop and provide private asset solutions to high-net-worth clients in the Canadian market through Scotia Global Asset Management. As part of the arrangement, SLC Management is committing to invest $100 million of seed capital for future funding opportunities.
Scotiabank Global Wealth Management is the third-largest business of its kind in Canada, with $631 billion of AUA globally, as of July 31, 2023.1 Scotiabank Global Wealth Management has the largest Private Investment Counsel and Trust businesses and is ranked second by assets in the Canadian investment fund industry.2
SLC Management is a fixed income and alternatives asset manager with a global client base of 1300+ leading institutional investors, and manages $361 billion in assets, as of June 30, 2023.
“Once the domain of the most sophisticated institutional investors, private alternative investments have been increasingly sought after for their important role in enhancing portfolio diversification and risk-adjusted returns,” says Glen Gowland, Group Head, Global Wealth Management at Scotiabank. “Through this strategic relationship with SLC Management, we are pleased to extend our Scotia Private Asset Platform to deliver institutional-quality alternative strategies, paired with comprehensive wealth advice to meet the wide-ranging needs of our clients,” he adds.
“We are seeing an increase in the demand for alternatives from Canadian investors as they look to add new sources of yield and total return,” said Steve Peacher, President, SLC Management. “We’re delighted to be partnering with Scotia Global Asset Management, which will allow us to extend our set of world-class alternative investment capabilities to new clients and expands the roster of investment solutions that Scotiabank can offer to the Canadian wealth management market.”
With the growing demand among institutional and high-net-worth investors for private assets in Canada, the relationship with SLC Management leverages its affiliate investment managers, who have deep, global expertise in key alternative markets:
- BGO – Private real estate – BGO is a leading, global real estate investment management advisor and a globally-recognized provider of real estate services, managing $83 billion USD of assets under management for over 750 institutional clients, as of June 30, 2023.
- Crescent Capital – Private credit – Crescent is a global credit investment manager with more than 30 years of experience in below investment grade credit through strategies that invest in marketable and privately originated debt securities including senior bank loans, high yield bonds, as well as private senior, unitranche and junior debt securities. Crescent has assets and commitments under management of approximately $40 billion USD as of June 30, 2023.
- InfraRed Capital Partners – Private infrastructure – InfraRed is an international infrastructure investment manager, managing equity capital in multiple private and listed funds, primarily for institutional investors across the globe. InfraRed has completed more than 300 infrastructure transactions and has over $14 billion USD of infrastructure equity under management as of June 30, 2023.
1Assets Under Administration (AUA): Assets administered by the Bank which are beneficially owned by clients and therefore not reported on the Bank’s Consolidated Statement of Financial Position. Services provided for AUA are of an administrative nature, such as trusteeship, custodial, safekeeping, income collection and distribution, securities trade settlements, customer reporting, and other similar services.
2 2022 Scotiabank Annual Report
This announcement does not constitute an offer to sell or the solicitation of an offer to buy any securities nor shall there be any sale of securities in any jurisdiction in which any offer, solicitation or sale would be unlawful prior to registration or qualification of such securities under the securities laws of any such jurisdiction.
About Scotiabank Global Wealth Management
Scotiabank Global Wealth Management is focused on delivering comprehensive wealth management advice and solutions to clients across Scotiabank’s footprint. Scotia Wealth Management® consists of a range of financial services provided by The Bank of Nova Scotia (Scotiabank®); The Bank of Nova Scotia Trust Company (Scotiatrust®); Private Investment Counsel, a service of Scotia Global Asset Management; 1832 Asset Management U.S. Inc.; Scotia Wealth Insurance Services Inc.; and ScotiaMcLeod®, a division of Scotia Capital Inc. Scotia Global Asset Management is the business name of 1832 Asset Management L.P., a limited partnership, the general partner of which is wholly owned by The Bank of Nova Scotia (Scotiabank). Scotia Global Asset Management offers a range of wealth management solutions, including mutual funds, ETFs, and investment solutions for private clients, institutions, and managed asset programs.
Scotiabank is a leading bank in the Americas. Guided by our purpose: “for every future”, we help our customers, their families and their communities achieve success through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. With a team of over 90,000 employees and assets of approximately $1.4 trillion (as at July 31, 2023), Scotiabank trades on the Toronto Stock Exchange (TSX: BNS) and New York Stock Exchange (NYSE: BNS). For more information, please visit http://www.scotiabank.com and follow us on X @Scotiabank.
About SLC Management
SLC Management is a global institutional asset manager that offers institutional investors traditional, alternative and yield-orientated investment solutions across public and private fixed income markets, as well as global real estate equity and debt. SLC Management is the brand name for the institutional asset management business of Sun Life Financial Inc. under which the entities of Sun Life Capital Management (U.S.) LLC in the United States, and Sun Life Capital Management (Canada) Inc. in Canada operate. These entities are also referred to as SLC Fixed Income and represent the investment grade public and private fixed income strategies of SLC Management.
BGO, InfraRed Capital Partners (InfraRed), Crescent Capital Group (Crescent) and Advisors Asset Management (AAM) are also part of SLC Management. BGO is a leading, global real estate investment management advisor and a globally recognized provider of real estate services. InfraRed is an international investment manager focused on infrastructure, managing equity capital in multiple private and listed funds, primarily for institutional investors across the globe. Crescent is a global alternative credit investment asset manager registered with the U.S. Securities and Exchange Commission as an investment adviser. Crescent provides private credit financing (including senior, unitranche and junior debt) to middle-market companies in the U.S. and Europe and invests in high-yield bonds and broadly syndicated loans. AAM is an independent U.S. retail distribution firm that provides a range of solutions and products to financial advisors at wirehouses, registered investment advisors and independent broker-dealers.
As of June 30, 2023, SLC Management has assets under management of C$361 billion (US$273 billion) and AAM represents an additional approximately C$50 billion (US$37) billion in assets under administration.
For more information, please visit slcmanagement.com.
For further information: For media enquiries, please contact: Alex Mathias, Global Wealth Management Communications, Scotiabank, [email protected], 647-537-8036; Hannah Stewart, Director, Media Relations & Communications, SLC Management, [email protected], 646-761-6344