SLC Management Leadership Update for Private Fixed Income
Plan sponsors may wish to consider whether this investment news has any implications for the investment options available within their plans. Sun Life Assurance Company of Canada purchases units of the funds listed below. They are established as segregated funds under the Insurance Companies Act (Canada).
In October 2023, SLC Management (SLC) announced that Sam Tillinghast, Senior Managing Director and Head of Private Fixed Income, would retire effective December 31, 2023, marking the conclusion of a 30-year career in private credit. Under his leadership, the private fixed income (PFI) teams recently evolved to a structure of three teams - Corporate Credit, Infrastructure Debt and Structured Credit – a shift that reflected how the asset class is perceived and understood in the market. This change took place in May 2023.
With Tillinghast's retirement, the responsibility for SLC Management's Private Fixed Income (PFI) business transitioned to Co-Heads Elaad Keren and Andrew Kleeman. Keren supervises Structured Credit and PFI Portfolio Management, while Kleeman has assumed responsibility for Corporate Credit and Infrastructure Debt. Keren and Kleeman have been responsible for approving all PFI investments for the past three years and will continue to do so.
Elaad Keren is Senior Managing Director, Head of Private Fixed Income Portfolio Management. He originally joined Sun Life in 2008, before moving to a client in 2015 and then returning to Sun Life in 2019. He has more than 20 years of investment experience and 15 years of private fixed income experience. In 2020, Keren became lead Portfolio Manager for Canadian PFI funds and then Head of Portfolio Management for North America in 2022.
Andrew Kleeman is Senior Managing Director, Head of Corporate Private Placements. Kleeman has over 10 years of private debt experience. He has been with SLC since 2018 and was promoted to his current role in 2020.
SLC also announced that Portfolio Manager Petra Wendroth assumed leadership of PFI Portfolio Management for client portfolios across North America. She has over 15 years of industry experience, and over 10 years in PFI. Wendroth has worked alongside the former head of Private Fixed Income, Candace Shaw, between 2016-2020, and Elaad Keren since 2019.
Lastly, SLC announced that Liz Thorne, Managing Director, Private Fixed Income and ESG, will lead the Corporate Private Placements team. She will continue as ESG lead.
These changes all took effect on January 1, 2024.
SLC Management has indicated there will be no changes to the investment strategy, processes, or fund management. Petra Wendroth, Elaad Keren, and Maurice Primeau, Managing Director and Portfolio Manager for PFI, will continue managing the Funds.
Sun Life GRS Investment Solutions’ view
While Tillinghast's experience and leadership will be missed, there is sufficient depth of experience within SLC Management to counterbalance his departure. Keren and Kleeman have proven expertise in the investment industry and team management. The firm has a deep team and uses a rigorous investment process that is not reliant on the talent of a small number of individuals. The depth of team allows for careful succession planning around the retirement of senior leaders such as Tillinghast. The Sun Life GRS Investment Solutions team will continue to monitor this leadership transition and provide updates as necessary.
Questions?
Please contact your Sun Life Group Retirement Services representative.