Ryan Labs Asset Management Inc. Announces Launch of Defensive Risk Premia (DRP) Strategy
Innovative strategy helps institutional investors manage equity market risk with potential for improving funding volatility
NEW YORK, Feb. 27, 2018 /PRNewswire/ - Ryan Labs Asset Management Inc. (Ryan Labs), a Sun Life Investment Management company, today announced the launch of their Defensive Risk Premia (DRP) strategy for corporate and public pension plans, as well as other institutional investors. This innovative strategy is designed to enhance the defensive role the fixed income allocation plays within the total asset allocation of an institutional investor's portfolio and to further offset losses from equity market downturns.
Despite recent market fluctuations, the current nine-year equity bull market remains one of the longest in history without a major correction. Using a proprietary quantitative model that monitors financial and economic risk on a daily basis, the DRP strategy is designed to turn on when elevated equity risk is indicated and there is a flight to quality into safe haven assets. Using treasury futures contracts, the strategy aims to dynamically offset negative equity performance of market volatility.
Ryan Labs continues to achieve outstanding investment performance, with its core fixed income strategy beating its benchmark* for 16 years in a row. In addition to Ryan Labs fixed income strategies, the new DRP strategy is available to institutional investors in various vehicles to suit their individual needs.
"Building on the momentum of our successful fixed income solutions – from total returns, to liability driven investments, to overlay strategies – our Defensive Risk Premia strategy reinforces our deep expertise and relentless focus on alpha-generating strategies," says Richard Familetti, President and CIO, Ryan Labs. "The DRP strategy brings our strengths in managing underlying fixed income assets with overlay and quantitative analysis to provide a unique solution to institutional investors."
Under the leadership of Mr. Familetti and backed by Sun Life Investment Management, the firm continues to broaden its institutional investment solutions to support the evolving needs of investors with continued focus on generating consistent alpha solutions that meet institutional investor demands.
"Equity risk remains the dominant risk factor within an investor's asset allocation, driving both corporate and public pension plans to continue their focus on reducing funding volatility by adjusting their asset allocation into strategies that are traditionally uncorrelated to equity corrections and drawdowns," says Chris Adair, Senior Managing Director, Ryan Labs. "Historically, fixed income has played a defensive role in asset allocation, and by adding the DRP strategy within an existing fixed income allocation, the strategy helps further diversify and minimize funding volatility."
About Ryan Labs Asset Management
Ryan Labs Asset Management is part of the Sun Life Investment Management group of companies. Ryan Labs Asset Management specializes in managing total return fixed income and liability-driven investing strategies for U.S. defined benefit pension plans and other institutional investors. By harnessing the derivative trading desk of Sun Life Investment Management, Ryan Labs also offers a variety of overlay capabilities including equity tail hedging and duration completion strategies.
For more information, please visit our website – www.ryanlabs.com
About Sun Life Investment Management
The Sun Life Investment Management group of institutional investment management companies comprises Sun Life Institutional Investments (Canada) Inc. and Bentall Kennedy (Canada) Limited Partnership in Canada, and Prime Advisors Inc., Ryan Labs Asset Management and Bentall Kennedy (U.S.) Limited Partnership in the United States. These operations have combined third-party assets under management of $59 billion, as of December 31, 2017. Sun Life Investment Management includes the investment division of Sun Life Assurance Company of Canada that manages $146.1 billion in assets under management for the Sun Life Financial group of companies as of December 31, 2017.
For more information, please visit our website – www.sunlifeinvestmentmanagement.com
Note to Editors: All figures in Canadian dollars except as otherwise noted.
* The Barclays Capital U.S. Aggregate Bond Index, on an annualized, gross-of-fee basis
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SOURCE Sun Life Investment Management