Sun Life 2015 Annual Report Download - page 7

Individual Insurance and Wealth grew insurance sales by 16%,
in part by growing our Career Sales Force to over 4000 advisors
who support clients from coast to coast. Sun Life Global
Investments delivered impressive investment performance for
clients and delivered $1.1 billion of retail net sales for the year,
up 75% over 2014 – a remarkable feat from a standing start five
years ago.
Group Benefits and Group Retirement Services (GRS)
maintained their #1 ranking in their respective markets.
Of particular note, GRS earned a $2 billion mandate from
the University of British Columbia Pension Plan – at the time,
the largest deal of its kind ever completed in Canada – and
our Defined Benefits Solutions business paved the way
with the transfer of $5 billion of longevity risk from the Bell
Canada Pension Plan, the first of its kind in North America.
We broadened our asset management pillar significantly
in 2015 and grew its underlying net income to $700 million
from $616 million in 2014. Through Sun Life Investment
Management, we have created a North American investment
management business that oversees $58 billion of third-party
assets in private, yield oriented asset classes including real
estate, commercial mortgages and private fixed income.
In 2015, we acquired three firms – Bentall Kennedy, Prime
Advisors and Ryan Labs – that each bring leading capabilities
to Sun Life Investment Management. Our clients can expect
not only a continuation of the professional investment
solutions delivered in the past, but access to a broader and
richer set of investment alternatives.
The anchor for our asset management business is MFS, which
has grown to become one of the world’s premier investment
managers. MFS’s management approach stands out in these
turbulent markets, and was recognized once again when
Barron’s named MFS among the “Best Mutual Fund Families”
in its annual ranking of U.S. asset managers. MFS’s strong
showing reflects its management approach and investment
results, which includes the number one ranking based on
five-year performance, and second place in the 10-year
performance rankings. MFS’s market share grew, but overall
net flows were negative due to market volatility, industry
trends to passive investments and portfolio rebalancing by
institutional investors, as well as MFS’s decision to cap certain
products in order to protect client returns. Looking ahead,
MFS expects to expand sales of its Blended Research suite
of products, and grow its global fixed income platform.
The benefits of our balanced and diversified
business model were on full display in 2015.
Energy and materials prices declined dramatically,
slowing Canadian economic growth and leading
to negative returns on the Toronto Stock Exchange
and lower interest rates, both headwinds for our
Canadian operations. On the other hand, the
resulting devaluation of the Canadian dollar lifted
the approximately 64% of our earnings that come
from outside Canada. Our U.S. and Asian businesses
also benefited from stronger economic growth in
those markets.
In Canada, where our goal is to be a leader in
financial protection and wealth solutions in our
home market, our business delivered across the
board, growing underlying net income to $894
million from $823 million in 2014.
HOW OUR FOUR PILLAR GROWTH
STRATEGY PERFORMED
ANNUAL REPORT 2015 | SUN LIFE FINANCIAL INC. | 5