Sun Life MFS U.S. Growth Fund – Co-Portfolio Manager Retirement

June 26, 2023

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 under the Insurance Companies Act (Canada).

In March 2023, MFS announced the retirement of Paul Gordon. Gordon was a co-Portfolio Manager (PM) on the Sun Life MFS U.S. Growth Fund (the Fund), as well as a member of the Growth Equity team. Gordon initially went on personal leave in January 2023 and ultimately decided to retire in March after a 20-year tenure with MFS.

The investment philosophy of the Fund won't change. The remaining co-PMs, Eric Fischman and Bradford Mak, will continue to manage the Fund. Fischman has over 32 years of industry experience. He joined MFS in 2000 as an equity research analyst and was named PM on the strategy in 2002. Mak joined the PM team in 2021. MFS has no immediate plans to add a third co-PM to the Fund.

SLGI View:

SLGI Asset Management Inc. (SLGI) is the investment manager for the Fund (MFS acts as the sub-advisor). SLGI monitors the underlying MFS U.S. growth strategy and team. SLGI is encouraged by the fact that Eric Fischman and Bradford Mak will continue to manage the strategy. Both Fischman and Mak have long tenures with MFS which will ensure that Gordon’s absence does not materially impact the portfolio management process. That said, SLGI is paying closer attention to the strategy considering the recent changes.

GRS Investment Solutions View:

Although Gordon’s retirement is a loss to the team, we are comforted by the stability of the continuing co-portfolio management team. Fischman’s 20-year tenure as lead PM provides continuity in process and philosophy. While Mak has less tenure on the team, he has been with MFS since 2010 and has over 20 years industry experience. While we have no significant concerns with the change, we have placed Sun Life MFS U.S. Growth on our Watch List under Additional Monitoring (least severe category). We will continue to monitor the fund and will provide further updates if needed.

Do you have to take any action?

You and your members don’t have to take any action as a result of these changes.

Questions?

Please contact your Sun Life Group Retirement Services representative.