Strategic relationship seeks to develop private-asset solutions to Canadian high-net-worth space
Scotiabank’s comprehensive wealth advice unit is wading deeper into the alternative investment space.
Through a strategic partnership with Sun Life Capital Management (SLC Management), Scotiabank Global Wealth Management is planning to develop private asset solutions for its clients in the Canadian high-net-worth space.
"Once the domain of the most sophisticated institutional investors, private alternative investments have been increasingly sought after for their important role in enhancing portfolio diversification and risk-adjusted returns," says Glen Gowland, Scotiabank’s group head, Global Wealth Management said in a statement.
The solutions will be provided through Scotia Global Asset Management. SLC Management, Sun Life Financial’s institutional asset management business, has committed to invest seed capital of $100 million to fund future opportunities.
As part of the strategic partnership, SLC Management is leveraging its affiliate global investment managers BGO, Crescent Capital, and InfraRed Capital Partners to provide exposure to private real estate, private credit, and private infrastructure, respectively.
The partnership brings together the considerable strength of Scotiabank’s wealth business – the third largest of its kind in Canada, boasting $631 billion of AUA globally – and SLC Management’s fixed-income and alternatives asset expertise.
“We are seeing an increase in the demand for alternatives from Canadian investors as they look to add new sources of yield and total return,” said SLC Management President Steve Preacher.
"We're delighted to be partnering with Scotia Global Asset Management, which will allow us to extend our set of world-class alternative investment capabilities to new clients and expands the roster of investment solutions that Scotiabank can offer to the Canadian wealth management market," he said.
“Once the domain of the most sophisticated institutional investors, private alternative investments have been increasingly sought after for their important role in enhancing portfolio diversification and risk-adjusted returns,” Gowland said.
Scott Thomson, who took over as CEO in Scotiabank in February, recently hired former RBC exec Jacqui Allard to lead the bank’s wealth management business. She’ll take the reins at the beginning of 2024, while Gowland will be promoted to a vice-chair role.
