Sun Life Global to acquire Excel Funds

Sep 11th, 2017 | By | Category: ETF and Index News

Canadian financial services firm Sun Life Global has agreed to buy Toronto-based asset manager Excel Funds Management in a move which will add ETFs to Sun Life’s roster of funds for the first time. The terms of the deal will see Sun Life purchase all outstanding shares of Excel Funds, with a completion date scheduled for the end of the fourth quarter 2017.

Sun Life Global to acquire Excel Funds

Excel’s 13 mutual funds and 2 ETFs will become part of the Sun Life offering.

Since launching in 2010, Sun Life has grown rapidly and now manages over $18 billion in assets. Excel Funds, a specialist in emerging markets, is much smaller with around $700 million in assets. As well as a number of mutual funds, Excel offers two actively managed ETFs, the Excel Global Balanced Asset Allocation ETF (TSX: EXGB) and the Excel Global Growth Asset Allocation ETF (TSX: EXGG).

Both ETFs were launched in May 2017 and use behavioural science and big data to make global asset allocation decisions across multiple asset categories. The ETFs can feature up to 18 asset classes diversified across geographic regions, developed and emerging market equities, fixed income securities, corporate debt, credit, and currencies.

EXGB targets returns of 2.5% over the Bank of Canada Overnight Lending Rate and has a target volatility of between 4-6%. The more aggressive EXGG targets returns of 5% over the Bank of Canada Overnight Lending Rate with a target volatility of between 8-9%.

EXGB and EXGG currently both have assets of CAD$1.9 million and both funds have expense ratios of 0.95%.

Rick Headrick, President, Sun Life Global Investments, commented: “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.”

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