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. It is established as a segregated fund under the Insurance Companies Act (Canada).

In May 2021, MFS Investment Management Canada Ltd. (MFS) announced that Ted Maloney, co-portfolio manager and CIO, would step away from his portfolio management responsibilities on the Sun Life MFS U.S. Equity Fund (the Fund), starting May 1, 2023. SLGI Asset Management Inc. (SLGI) manages the Fund and MFS is the sub-advisor. MFS also announced that Jude Jason, an equity analyst, would join the US Equity portfolio management team effective June 30, 2021.

In June 2020, MFS announced that Kevin Beatty, co-portfolio manager of the Fund, would give up his portfolio management duties and retire effective September 30, 2021. We issued an update last year concerning Beatty’s retirement.

Allison O'Neill, co-portfolio manager and co-CIO for the Americas, will stay on the Fund. She will work alongside Jude Jason after Beatty’s retirement and Maloney stepping away. MFS has confirmed that the Fund’s investment philosophy, style and process will stay unchanged.

SLGI’s view

SLGI believe Kevin Beatty has provided experience and leadership to the U.S. Equity team since being named a portfolio manager in 2004. In addition, they feel MFS put in place a process to support an orderly transition. SLGI also believe the two remaining portfolio managers, Allison O’Neill and Ted Maloney, have ample investment experience within US equities. O’Neill and Maloney have held portfolio manager roles for the Fund since 2018 and 2012, respectively.

MFS hasn’t announced a replacement for Kevin Beatty’s Co-CIO Equity for the Americas position. SLGI don’t see this as being material in terms of portfolio implementation and continuity. They feel the co-CIO roles are relatively new and are meant to foster further integration between the research and portfolio management teams.

Sun Life GRS Investment Solutions’ view

Both Kevin Beatty and Ted Maloney have significant tenure at MFS and investment experience. Beatty and Maloney joined MFS in 2002 and 2005, respectively. Their departures are a loss for the Fund. We take comfort that Maloney will remain at MFS and that he planned his departure two years in advance. This will give time for Jude Jason to ease into the portfolio management role. It will also allow Jason to develop a rapport with Allison O’Neill. Jason joined MFS in 2012 and has experience working with the current portfolio management team. His research responsibilities have focused on the energy sector and some technology companies.

Once Maloney steps away in 2023, O’Neill will become the longest-tenured portfolio manager on the fund. O’Neill joined MFS in 2005 as a research analyst and joined the fund in 2018. O’Neill has progressed to a leadership position in the organization as co-CIO for the Americas.

MFS’ portfolio management teams make decisions by consensus with the research teams having significant influence on security decisions. As a result, we remain confident in the portfolio management team. However, due to the amount of change we continue to have the Fund on our Watch List under Additional Monitoring. We plan to meet with Jude Jason later this year and will provide updates as needed.

Questions?

Please contact your Sun Life Group Retirement Services representative.