Mr. Glen Gowland of Scotiabank reports

SCOTIABANK GLOBAL WEALTH MANAGEMENT AND SUN LIFE CAPITAL MANAGEMENT ANNOUNCE STRATEGIC RELATIONSHIP IN PRIVATE ASSETS

Bank of Nova Scotia's Scotiabank Global Wealth Management and Sun Life Financial Inc.'s Sun Life Capital Management (SLC Management) plan to develop and provide private asset solutions to high-net-worth clients in the Canadian market through Scotia Global Asset Management. As part of the arrangement, SLC Management is committing to invest $100-million of seed capital for future financing opportunities.

Scotiabank Global Wealth Management is the third-largest business of its kind in Canada, with $631-billion of AUA (assets under administration) globally as of July 31, 2023. Scotiabank Global Wealth Management has the largest private investment counsel and trust businesses and is ranked second by assets in the Canadian investment fund industry.

SLC Management is a fixed-income and alternatives asset manager with a global client base of more than 1,300 leading institutional investors and manages $361-billion in assets as of June 30, 2023.

"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," said Glen Gowland, group head, global wealth management, at Scotiabank. "Through this strategic relationship with SLC Management, we are pleased to extend our Scotia private asset platform to deliver institutional-quality alternative strategies, paired with comprehensive wealth advice, to meet the wide-ranging needs of our clients," he added.

"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 Steve Peacher, president, SLC Management. "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."

With the growing demand among institutional and high-net-worth investors for private assets in Canada, the relationship with SLC Management leverages its affiliate investment managers, which have deep, global expertise in key alternative markets:

• BGO -- private real estate: BGO is a leading, global real estate investment management adviser and a globally recognized provider of real estate services, managing $83-billion (U.S.) of assets under management for over 750 institutional clients as of June 30, 2023.
• Crescent Capital -- private credit: Crescent is a global credit investment manager with more than 30 years of experience in below-investment-grade credit through strategies that invest in marketable and privately originated debt securities, including senior bank loans, high-yield bonds, as well as private senior, unitranche and junior debt securities. Crescent has assets and commitments under management of approximately $40-billion (U.S.) as of June 30, 2023.
• InfraRed Capital Partners -- private infrastructure: InfraRed is an international infrastructure investment manager, managing equity capital in multiple private and listed funds, primarily for institutional investors across the globe. InfraRed has completed more than 300 infrastructure transactions and has over $14-billion (U.S.) of infrastructure equity under management as of June 30, 2023.

About Scotiabank Global Wealth Management

Scotiabank Global Wealth Management is focused on delivering comprehensive wealth management advice and solutions to clients across Scotiabank's footprint. Scotia Wealth Management consists of a range of financial services provided by Bank of Nova Scotia (Scotiabank); the Bank of Nova Scotia Trust Company (Scotiatrust); Private Investment Counsel, a service of Scotia Global Asset Management; 1832 Asset Management U.S. Inc.; Scotia Wealth Insurance Services Inc.; and ScotiaMcLeod, a division of Scotia Capital Inc. Scotia Global Asset Management is the business name of 1832 Asset Management LP, a limited partnership, the general partner of which is wholly owned by Scotiabank. Scotia Global Asset Management offers a range of wealth management solutions, including mutual funds, ETFs (exchange-traded funds) and investment solutions for private clients, institutions and managed asset programs.

About Bank of Nova Scotia

Scotiabank is a leading bank in the Americas. Guided by its purpose, "for every future," the bank helps our customers, their families and their communities achieve success through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. With a team of over 90,000 employees and assets of approximately $1.4-trillion (as at July 31, 2023), Scotiabank trades on the Toronto Stock Exchange and New York Stock Exchange.

About SLC Management

SLC Management is a global institutional asset manager that offers institutional investors traditional, alternative and yield-orientated investment solutions across public and private fixed-income markets as well as global real estate equity and debt. SLC Management is the brand name for the institutional asset management business of Sun Life Financial, under which the entities of Sun Life Capital Management (U.S.) LLC in the United States and Sun Life Capital Management (Canada) Inc. in Canada operate. These entities are also referred to as SLC Fixed Income and represent the investment-grade public and private fixed-income strategies of SLC Management.

BGO, InfraRed Capital Partners, Crescent Capital Group and Advisors Asset Management (AAM) are also part of SLC Management. BGO is a leading, global real estate investment management adviser and a globally recognized provider of real estate services. InfraRed is an international investment manager focused on infrastructure, managing equity capital in multiple private and listed funds, primarily for institutional investors across the globe. Crescent is a global alternative credit investment asset manager registered with the U.S. Securities and Exchange Commission as an investment adviser. Crescent provides private credit financing (including senior, unitranche and junior debt) to middle-market companies in the United States and Europe and invests in high-yield bonds and broadly syndicated loans. AAM is an independent U.S. retail distribution firm that provides a range of solutions and products to financial advisers at wirehouses, registered investment advisers and independent broker dealers.

As of June 30, 2023, SLC Management has assets under management of $361-billion ($273-billion (U.S.)) and AAM represents an additional approximately $50-billion ($37-billion (U.S.)) in assets under administration.