Sun Life of Canada (SLoC) is determined to press ahead with its stock market float, despite the problems which beset the UK life assurance market in which it operates.

The use of some sub advisers to boost life fund investment options is on the cards. This is now a serious industry trend: Scottish Equitable is also set to develop a roster. "SLoC will need to be priced cheaply to achieve lift-off,' said one fund manager. Independent analyst Ned Cazalet believes that a successful float will be difficult to achieve. Around a third of SLoC's business comprises UK life assurance which has difficulties in retaining sales staff, as demonstrated by attrition at Abbey Life. SLoC's Confederation UK life fund has suffered from a difficult history. SLoC subsidiary SLC Asset Management's pragmatic value approach led to performance 2.2 percentage points below the Caps median last year. SLC's strong bond and decent overseas numbers have been held back by UK equities. There have been disappointments in previous years. To take its business forward, SLoC looks set to adopt a multi-manager alternatives for its life fund, possibly drawing on sister US fund manager MFS. North of the border, Scottish Equitable has been interviewing third party managers, with a view to deciding how a roster for its retail management operation could develop. Scottish Equitable aims to keep its own asset management operation, but its poor returns in certain areas will have concentrated the minds of management.