Company News

The acquisition will expand SLGI’s lineup of emerging markets funds and adds ETFs to its roster of products

By Megan Harman |

 

Sun Life Global Investments (Canada) Inc. (SLGI) — the mutual funds division of Toronto-based Sun Life Financial Inc. — has entered into an agreement to acquire Toronto-based investment manager Excel Funds Management Inc., the companies announced on Thursday.

The deal expands Sun Life's Canadian wealth management business considerably, and adds exchange-traded funds (ETFs) to the company's broad roster of financial services offerings.

Under the agreement, SLGI will purchase all of the outstanding shares of both Excel Funds Management and Excel Investment Counsel Inc.

Excel Funds specializes in emerging markets funds, and has approximately $700 million in assets under management.

"Becoming part of Sun Life Global Investments is a natural evolution for Excel Funds which will now be part of a much larger global fund family," says Bhim Asdhir, president and CEO of Excel Funds, in a statement.

The deal will help SLGI to grow its assets and expand its investment offerings to include new emerging markets options and ETFs. Excel Funds launched its first ETFs in May.

"Since launching in 2010, Sun Life Global Investments has experienced tremendous growth with over $18 billion in assets under management; we actively look for opportunities to expand the range of innovative solutions we offer to our clients," says Rick Headrick, president of SLGI, in a statement. "Acquiring Excel Funds is a great fit for us, bringing a complementary product line-up that uses a sub-advisor business model similar to our own."

The acquisition brings attractive new investment opportunities to SLGI clients, adds Sadiq Adatia, chief investment officer at SLGI.

"We believe that emerging markets, such as India, represent an important growth opportunity for investors," Adatia says in a statement.

Following completion of the transaction, Asdhir will join the SLGI leadership team as a member of the integration planning committee and the senior relationship manager for the funds' subadvisors and brokers.

The companies are committed to ensuring a smooth integration process for clients and advisors, Headrick said.

Financial and other terms of the transaction were not disclosed. The acquisition is expected to close by the end of the fourth quarter of 2017, subject to certain conditions, including regulatory approval unitholder and shareholder approvals.

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