MFS Diversified Value Fund Compliance Update

January 19, 2015

Plan sponsors may wish to consider whether this investment news has any implications for the investment options available within their plans. Sun Life Assurance Company of Canada purchases units of the fund listed below, which is established as segregated fund in accordance with the Insurance Companies Act (Canada).

In November 2014, MFS Investment Management (MFS) communicated that due to market movement, the MFS Diversified Value Fund (the Fund) exceeded the maximum allocation to the MFS Canadian Equity Value Fund, as set out by the fund's Asset Mix Services Agreement.

On November 5th, 2014, the Fund's allocation to the MFS Canadian Equity Value Fund was 55.75%, exceeding the maximum allocation of 55% by 0.75%. On November 7th, 2014 the Fund was back in compliance with a weighting of 52.8%.

The fund's asset mix allocations to its underlying investments, according to the Asset Mix Services Agreement, are as follows:

  Minimum Benchmark (Target) Maximum
MFS Canadian Equity Value Fund 45% 50% 55%
MFS Canadian Fixed Income Fund 40% 45% 50%
MFS Money Market Fund 0% 5% 10%

How does this impact you and your plan members?
There is no impact or action required of you or your plan members as a result of this update. We will continue to monitor the fund and provide updates as necessary.

Please contact your Sun Life Group Retirement Services representative.