Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Investor Day (2024)
28 slides from Sun Life Financial's investor day presentation, 2024
Slide 1: SLC Management: Playing to Win
SLC Management Playing to Win
Slide 2: Steve Peacher and Sonny Kalsi
STEVE PEACHER Executive Chair, SLC Management SONNY KALSI President and CEO, SLC Management 2
Slide 3: Becoming an at-scale, global alternatives asset manager
• Platform with capabilities comparable to top alternative asset managers • Deep bench of talent and aligned interests with management teams Becoming an at- scale, global • Large and growing markets with strong tailwinds alternatives • Well-positioned to capitalize on the retail asset manager High N
Slide 4: Established a strong and growing alternatives platform
ESTABLISHED A STRONG & GROWING ALTERNATIVES PLATFORM Vision & capital Build the platform and establish trust and credibility Power of the platform 2014 / 2015 2018 2019 2020 2021 2023 2024 Launched 3rd party Formed SLC Acquired Acquired InfraRed Acquired Crescent Acquired Advisors Announced Sonny as
Slide 5: SLC is a global, diversified alternatives asset manager
SLC IS A GLOBAL, DIVERSIFIED ALTERNATIVES ASSET MANAGER Profile1 Global footprint Founded 2013 AUM2,3 $387B Employees4 1,900+ Investment professionals 760+ Countries 29 Number of offices 65 Clients 1,400+ 2 Represents a non-IFRS financial measure. Refer to the non-IFRS Financial Measures section in
Slide 6: SLC is a global, diversified alternatives asset manager
SLC IS A GLOBAL, DIVERSIFIED ALTERNATIVES ASSET MANAGER Investment grade credit Alternative credit Real estate Infrastructure Distribution AUM1,2,3 AUM1,2 AUM1,2 AUM1,2 Assets Third-party $66B Third-party $56B Third-party $88B Third-party $17B AUM1,2 $3B SL General $129B SL General $2B SL General $2
Slide 7: Delivered strong growth across key metrics
DELIVERED STRONG GROWTH ACROSS KEY METRICS Annual Fundraising1,2 3rd Party AUM1,3 Fee-Related Earnings (FRE)1 ($B) ($B) ($M) +13% +28% +57% CAGR CAGR CAGR 290 223 13 7 66 30 2018 2023 2018 2023 2018 2023 1 Represents a non-IFRS financial measure. Refer to the non-IFRS Financial Measures section in t
Slide 8: Playing in growing spaces with strong secular tailwinds
PLAYING IN GROWING SPACES WITH STRONG SECULAR TAILWINDS Key secular tailwinds Rate environment Central banks cutting interest rates, which in general is beneficial to risk assets Broader real estate market valuations, excluding office, is close to bottoming, and Real estate1 institutional investors
Slide 9: Playing in growing spaces with strong secular tailwinds
PLAYING IN GROWING SPACES WITH STRONG SECULAR TAILWINDS Expected industry growth in alternative Expected retail AUM growth in alternatives1 asset classes that SLC invests in1 (US$T) (US$T) +10% 31 +13% CAGR +10-12% CAGR 13 +8% 11 +13-15% 4 2023 2033F 2022 2032F Private credit Real estate Infrastruct
Slide 10: Well-positioned for the retail alternatives market
WELL-POSITONED FOR THE RETAIL ALTERNATIVES MARKET U.S. (through AAM) Turnkey distribution for U.S. retail Multi-channel, national Large, dedicated Strong financial advisor Sophisticated education Broad product suite1 coverage1 distribution team1 relationships1 & training • 4 wirehouses • 100+ wholes
Slide 11: Well-positioned for the retail alternatives market
WELL-POSITONED FOR THE RETAIL ALTERNATIVES MARKET Canada (through Scotiabank partnership) #3 largest bank in Canada2 Strategic partnership agreement with Scotiabank for Scotia HNW Clients in Canada Retail HNW market penetration1 Significant opportunity Canada <1% given under-penetrated U.S. ~4% mark
Slide 12: Sonny Kalsi
SONNY KALSI President and CEO, SLC Management 12
Slide 13: Our capabilities stack up against the world's pre-eminent alternative asset managers
OUR CAPABILITIES STACK UP AGAINST THE WORLD’S PRE-EMINENT ALTERNATIVE ASSET MANAGERS Capabilities $286B AUM1,2 $1,108B AUM $1,032B AUM $733B AUM $464B AUM $235B AUM Public fixed income Private credit Real estate debt Direct real estate Infrastructure Energy transition, natural resources Solutions Pr
Slide 14: Leverage power of the platform
LEVERAGE POWER OF THE PLATFORM Align incentives Access flexible Institutional Access retail Capability to retain sources of distribution HNW market extensions top talent funding Ensuring Expand Client Broad distribution Pursuing more Incremental collaboration coverage and through AAM in the strategi
Slide 15: Strong market-leading objectives
STRONG MARKET-LEADING OBJECTIVES 3RD PARTY ALTERNATIVES FRE1,2 AND UNDERLYING AUM1,2 GROWTH FRE MARGIN1,2,3 NET INCOME1,2 GROWTH PER ANNUM PER ANNUM 15%+ 35%+ 20%+ 1 Represents a non-IFRS financial measure. Refer to the non-IFRS Financial Measures section in the appendix to these slides. 2 These tar
Slide 16: Becoming an at-scale, global alternatives asset manager
• Platform with capabilities comparable to top alternative asset managers • Deep bench of talent and aligned interests with management teams Becoming an at- scale, global • Large and growing markets with strong tailwinds alternatives • Well-positioned to capitalize on the retail asset manager High N
Slide 17: Appendix
Appendix Sun Life | investor vay 7
Slide 18: BGO Summary
BGO SUMMARY Diversified asset and investor base Breadth of investment strategies AUM AUM By asset type1 By investor domicile1 Global equity Real estate Debt platform Development platform Services 2% • Knowledge and • A market leader • Offers extensive • Vertically experience of in providing real exp
Slide 19: Crescent Summary
CRESCENT SUMMARY Diversified asset and investor base Differentiated credit platform AUM AUM Private credit Tradeable credit By asset type1 By investor domicile1 5% Direct lending Multi-asset class Multi-asset class Asset class strategies portfolios portfolios 7% Crescent Credit Capital Trust – Bank
Slide 20: InfraRed Summary
INFRARED SUMMARY Diversified asset and investor base Breadth of investment strategies AUM AUM By asset type1 By investor domicile1 North America Global value-add Global income focus renewables 10% Brownfield / income Brownfield / Income 29% Greenfield value add generating generating 12% Exit driven
Slide 21: Advisors Asset Management (AAM) Summary
ADVISORS ASSET MANAGEMENT (AAM) SUMMARY Broad access to retail wealth channels Broad and deep distribution platform built to meet the needs of wealth partners PRODUCT SALES By channel1 Wholesale platform Capital markets platform UITs & 3rd party distribution (50 wholesalers & specialist (45 sales FT
Slide 22: SLC Fixed Income Summary
SLC FIXED INCOME SUMMARY Diversified asset and investor base Breadth of investment strategies AUM AUM By asset type1 By investor domicile1 Public fixed income Private fixed income Range of investment grade strategies 10% in the public bond markets including Investment grade private fixed strategies
Slide 23: Investment Performance – Real Assets Strategies
INVESTMENT PERFORMANCE – REAL ASSETS STRATEGIES Gross IRR since Inception for each fund1 58.0% 55 44.0% 45 39.0% 35 24.0% 26.3% 25 22.0% 19.0% 17.0% 15.0% 15 12.0% 12.0% 9.0% 8.0% 7.1% 5 -5 -15 -13.0% Japan I Asia II Asia III US I US II US III US IV Europe I Europe II Europe III Europe Europe Infra
Slide 24: Investment Performance – Debt Strategies
INVESTMENT PERFORMANCE – DEBT STRATEGIES Gross IRR since Inception for each fund1 12.2% 12.6% 11.8% 11.8% 11.3% 11.2% 10.7% 10.2% 9.8% 9.5% 8.9% 7.8% 7.5% VA - UK VA - UK VA - VA - Eur VA - Eur VA - HY - Junior - Junior - Senior Senior Eur Eur Sec Lend I lending II UK Sec Sec Lend I Sec Lend II Eur
Slide 25: Investment Performance – Investment Grade Fixed Income
INVESTMENT PERFORMANCE – INVESTMENT GRADE FIXED INCOME Excess returns – U.S. funds1 Excess returns – Canada funds1 1 Year 3 Year 5 Year 1 Year 3 Year 5 Year Quartile rankings2 Quartile rankings2 1.6% 1 1.7% 2 U.S. core 0.5% 2 Core Plus Bond 0.9% 2 0.7% 1.0% 3 2 0.4% 0.9% 1 2 Long Corporate 0.3% Long
Slide 26: Forward-Looking Statements
In this presentation, Sun Life Financial Inc. (“SLF” or “SLF Inc.”), its subsidiaries and, where applicable, its joint ventures and associates are collectively referred to as “we”, “us”, “our”, “Sun Life” and the “Company”. Reported net income (loss) refers to Common shareholders' net income (loss)
Slide 27: Use of Non-IFRS Financial Measures
Use of Non-IFRS Financial Measures The Company prepares its financial statements in accordance with international financial reporting standards (“IFRS”). This presentation includes financial measures that are not based on IFRS (“non-IFRS financial measures”). We report certain financial information
Slide 28: Endnotes
Endnotes Slide 4: 2 Does not include the General Account. SLC total AUM including the General Account was $387B as at September 30, 2024. 3 This does not include the $15B of assets under administration, largely distributed by Advisors Asset Management (“AAM”) Inc. Slide 5: 1 All figures are as of Se