Sun Life 2015 Annual Report Download - page 44

SLIM
(C$ millions) 2015
Reported net income 12
Operating net income(1) 12
Assets under management (C$ billions)(1) 57.8
Sales (C$ billions)(1)
Gross 4.0
Net 1.5
(1) Represents a non-IFRS financial measure. For SLF Asset Management, underlying net income is generally expected to be equal to operating net income. See Non-IFRS
Financial Measures.
SLIM delivers customized fixed income solutions including liability-driven investing through: (i) Bentall Kennedy, a real estate
investment manager operating in Canada and the U.S.; (ii) Prime Advisors, a U.S.-based investment management firm specializing in
customized fixed income portfolios primarily for U.S. insurance companies; (iii) Ryan Labs, a New York-based asset manager
specializing in fixed income and liability-driven investing; and (iv) SLIM Inc., our Canadian institutional asset manager which provides
investment expertise in alternative asset classes and liability-driven investing to pension funds and other institutional investors. SLIM
products are sold by the individual companies through internal sales teams.
SLIM’s reported net income and operating net income for the year ended December 31, 2015 was C$12 million. SLIM’s net income in
2015 primarily reflected the results of the 2015 acquisitions in SLIM.
2016 Outlook and Priorities
Continued volatility in equity markets and interest rates create an environment of uncertainty. MFS’s strategy of active management
that focuses on delivering value to our clients over the long term puts us in a competitive position over other asset managers. Our
strong relative performance means we are well positioned to attract flows when the markets eventually recover. Institutional investors
are increasingly turning to solutions and alternative assets to help match assets and liabilities. SLIM’s strategy is based on extending
how we manage Sun Life Financial’s general account to third-party institutional investors which, like Sun Life Financial, have long-
dated liabilities that they must meet. SLIM’s investment philosophy revolves around the belief that portfolios should be managed in a
customized manner aligned with the profile of an institution’s liabilities and that alternative, yield-oriented asset classes (such as private
fixed income and real estate) can enhance returns.
SLF Asset Management 2016 priorities include four primary objectives:
• Deliver superior investment performance.
• Continue to raise the bar in providing exceptional service based on a deep understanding of client needs.
• At MFS, focus particularly on our Blended Research products, which combine both fundamental and quantitative research, and on
expanding our fixed income capabilities in strategies targeted to the institutional marketplace.
• At SLIM, leverage the capabilities of Bentall Kennedy, Prime Advisors, Ryan Labs and SLIM Inc. to develop new products and
access new market segments.
Initiatives related to expanding distribution, products, client management and brand have been established to enable MFS and SLIM to
accomplish these priorities. These initiatives are supported by an ongoing focus on people to ensure performance and growth
objectives are achieved.
SLF Asia
Business Profile
Sun Life Financial’s history in Asia dates back to the early 1890s. Today, SLF Asia operates through subsidiaries in the Philippines,
Hong Kong, Indonesia and Vietnam(1) as well as through joint ventures with local partners in the Philippines, Indonesia, Malaysia,
China and India. These seven markets account for over 70% of Asia’s total population. Our Regional Office in Hong Kong facilitates
growth opportunities in Asia, and supports the sharing of best practices and resources throughout SLF Asia’s operations.
We offer individual life insurance products in all seven markets, and group benefits and/or pension and retirement products in the
Philippines, China, Hong Kong, India, Malaysia and Vietnam. We have also established asset management companies either directly
or through joint ventures and associates in the Philippines, China and India. We distribute these protection and wealth products to
middle- and upper-income individuals, groups and affinity clients through multiple distribution channels, with agency remaining the
largest distribution channel. This helps move forward our goal of growing Asia through distribution excellence in higher growth markets.
Strategy
Our goal is to strengthen our competitive position in Asia and to develop into a significant long-term revenue and earnings growth
operation. As such, we continue to develop innovative products, expand distribution channels and leverage the Company’s existing
asset management capability in Asia. Local initiatives complement our efforts to leverage our worldwide resources to bring industry-
leading products, services and best practices to Asia.
(1) We increased our ownership stake in PVI Sun Life in Vietnam from 49% to 75% on January 7, 2016.
42 Sun Life Financial Inc. Annual Report 2015 Management’s Discussion and Analysis