Q: Could you comment on Sunlife’s alternative assets business’ contribution to overall results and future return potential?
Hugh
Hugh
5i Research Answer:
The alternative division, SLC, reported a 37% increase in fee-related earnings due to strong capital raises and lower expenses. Margins rose 1.9 points to 25.9%. Net income rose $3M and SLC performed better than MFS. Strong inflows are a good sign for future growth, as long as expense discipline can be maintained. Things look good at the division, though market volatility can slow inflows, and, while markets are strong right now, it is possible that volatility increases if rates do not drop as fast as currently expected.