Credit Suisse Asset Management Buys Sun Life Financial Services

by Carla Johnson, Investors Offshore.com

18 October 2001

Credit Suisse Asset Management (CSAM) has signed a 'definitive agreement' for the acquisition of SLC Asset Management Group (SLCAM), the principal UK asset management subsidiary of global insurer Sun Life Financial of Canada.

CSAM expects the transaction to swell its assets under management by £11 billion, significantly strengthening the firm's UK franchise and adding resources to all UK domestic asset classes.

In a statement released by Sun Life, Donald A Stewart, chairman and ceo, said: 'The sale of our UK asset management divsion is part of our strategic review of all business units in the UK. One of our goals was to find a buyer willing to retain a team of seasoned portfolio managers to ensure minimum disruption to our clients. We are very pleased to have found that buyer in Credit Suisse Asset Management.'

Under the terms of the agreement, CSAM will phase out the use of the SLC name and rebrand the existing SLCAM business under the Credit Suisse Asset Management name during the first half of 2002. CSAM says it also intends to simplify the new corporate and regulatory structure by merging the CSAM and SLCAM entities into single operating companies for each of the regulated business lines.

'This is a strategic acquisition for CSAM in that it significantly strengthens its position in the largest pension and retail funds market in Europe, brings us a set of new client and consultant relationships and gives us a stronger platform from which to leverage our global capabilities in the UK,' said CSAM Global ceo Phillip Colebatch.

SLCAM ceo Ian Fishwick added: 'The corporate fit between SLC Asset Management and CSAM is excellent as there is limited duplication of investment capabilities or clients and the same commitment to quality, client focus and risk-controlled investment parameters. The senior management team of SLCAM is enthusiastic about joining a global asset manager as dynamic as CSAM.'

Sun Life, established since 1871, has partners in key markets worldwide such as Canada, America, Britain, Hong Kong, the Philippines, Japan, Indonesia, India and Bermuda. CSAM has confirmed that it will immediately begin a transition and integration project to merge the two businesses and intends to retain its London base of operations at Beaufort House in The City.

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