Sun Life Financial Inc. today announced that it is selling its 31.72% stake in Administradora de Fondos de Pensiones Cuprum SA of Chile, to Empresas Penta SA, for about $120 million in cash.

As a result of the transaction, Sun Life Financial expects to take a charge to earnings of about $45 million in the third quarter, arising from the depreciation of the Chilean peso against the Canadian dollar since the stake was acquired in 1998.

The sale is expected to be completed in August, Sun Life said.

“This sale reflects our continued focus on building a sustainable presence in markets in which we choose to compete and exiting those markets where we do not have a meaningful presence,” CEO Donald Stewart said in a news release.

“Our ownership position in Cuprum was not a core strategic asset and this sale will allow us to redeploy the capital more effectively within Sun Life Financial.”

Sun Life and its partners have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda.

As of June 30, the Sun Life group of companies had total assets under management of $377 billion.