06/30/2015 08:15 EDT | Updated 06/30/2016 05:59 EDT

Sun Life Financial acquires U.S. investment manager Prime Advisors

TORONTO - Sun Life Financial (TSX:SLF) is buying U.S. investment manager Prime Advisors Inc. for an undisclosed amount.

The Toronto-based insurer said Tuesday that acquiring the firm, which specializes in customized fixed-income portfolios mostly for U.S. insurance companies, was part of an effort to diversify its asset management capabilities.

Prime Advisors has about US$13 billion in assets under management, it said.

The transaction, which is expected to close in the third quarter, will be funded with cash and will not be material to Sun Life's financial results.