MFS Organizational Changes

June 15, 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 a segregated fund in accordance with the Insurance Companies Act (Canada).

Effective March 16, 2015, Paul Marcogliese departed MFS Investment Management to pursue other opportunities. Mr. Marcogliese was a Co-Portfolio Manager of the MFS Canadian Fixed Income Fund along with Peter Kotsopoulos, Director of Fixed Income and the leader of the Canadian Fixed Income Team.

Soami Kohly has been assigned portfolio management responsibilities for the strategies previously managed by Mr. Marcogliese. Mr. Kohly will co-manage the MFS Canadian Fixed Income Fund with Mr. Kotsopoulos. This fund is available on Sun Life’s Core investment platform.

Mr. Kohly has been with the firm since 2009.  His 21 year career includes experience as an actuary, as well as experience in equity research and liability-driven investing.  In 2014 he was named Co-Portfolio manager of the MFS Canadian Long Bond Fund.  He is also a Portfolio Manager on the firm’s Canadian Core Plus mandate.

While the departure of Mr. Marcogliese is a loss for the firm, we have some comfort with the use of internal succession which is made possible given the team-oriented approach and depth of resources at the firm.  We also take comfort in the long tenure of Mr. Kotsopoulos who has led the team since the retirement of Craig Barnard in 2005.  Mr. Kotsopoulos has been with the firm since 1995.

The MFS Canadian Fixed Income Fund aims to provide a moderate real rate of return, through income and capital gains, by investing in a diversified portfolio of primarily Canadian dollar debt and from time-to-time U.S. debt.

Consistent with MFS approach to portfolio management, two portfolio managers are assigned lead decision-making responsibility for each fund. Investment research responsibilities that support the firm’s Canadian Fixed Income Fund are assigned to analysts located in the firm’s Toronto office as well as MFS investment grade corporate teams in non-Canadian offices.  In total, the firm has 27 fundamental fixed income research analysts, 7 quantitative analysts, 16 traders and 22 Portfolio Managers.

Please contact your Sun Life Group Retirement Services representative.