March 29, 2018

Revised benchmark returns for MFS Balanced Value Fund

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).

In late January 2018, we discovered that MFS Investment Management Canada (MFS) submitted incorrect benchmark returns to Morningstar® for the MFS® Balanced Value segregated fund (the Fund) for the month of December 2017.  The error was discovered and corrected in Morningstar on January 30, 2018.  Therefore, the benchmark returns for the Fund were incorrect from January 15, 2018, when the returns were available via Morningstar, to January 30, 2018.   

The discrepancy was the result of a benchmark change for the fund.  MFS have informed us that they have reinforced internally the benchmark change protocol as well as the communication process with external vendors to prevent similar incidences in the future. MFS recognizes the importance of accurate benchmark information and has committed to greater diligence going forward.

How does this impact you and your plan members?

It is important to note that the Fund’s returns have always been reported correctly; only the Fund’s benchmark return was revised.  Revised benchmark returns are available on the plan sponsor and plan member services website and on Morningstar. 

There is no action required of you or your plan members as a result of this update.

Please contact your Sun Life Financial Group Retirement Services representative.