SLC’s TALF 2020 strategy attracts $500m

SLC Management, the asset management business of Sun Life Financial, announced the successful closing of its Term Asset-Backed Securities Loan Facility (TALF) 2020 strategy for institutional investors. The $168 billion firm raised $500 million in the oversubscribed offering that follows on the firm’s 2009 TALF strategy that resulted in an annual IRR of 21.5%, officials said. The TALF program allows investors to purchase high-quality AAA-rated asset backed securities (ABS) using federal government loans between June and September 2020. The TALF program will see the Federal Reserve extend up to $100 billion in non-recourse loans to investors in certain AAA-rated ABS and commercial mortgage-backed securities (CMBS). Sun Life will also be investing in the strategy alongside the asset management affiliate. “In an unprecedented market environment, TALF 2020 provides the opportunity to generate strong returns while investing in AAA-rated securities,” said Chris Adair, head of U.S. business development and client relationships at SLC. “At SLC Management, we’ve consistently outperformed benchmarks in investment-grade ABS and securitized credit markets.” Daniel Lucey and Phil Mendonca, co-portfolio managers on SLC Management’s Total Return Fixed Income team, will manage the firm’s TALF 2020 strategy and both managers oversaw the previous TALF program at the firm that was originally offered by Ryan Labs Asset Management, which is now part of Sun Life Capital Management. “Based on our experience in 2009, we know TALF provides a great opportunity for our clients,” said Daniel Lucey, managing director and senior portfolio manager at SLC. “With our track-record of success and our confidence in the relative value of AAA-rated ABS and CMBS, we’re excited to be able to bring this opportunity to institutional investors.” While TALF asset purchases are restricted to AAA-rated securities, SLC says it has been working with clients and prospects to take advantage of the dislocations in the investment grade securitized sectors.

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