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 funds listed below. They are established as segregated funds under the Insurance Companies Act (Canada).
Effective on or about March 15, 2021, MFS Investment Management Canada Limited ("MFS") will be making changes to their Offering Memorandum (“investment policy”). These changes will apply to the funds below.
Fixed Income Funds
- MFS Canadian Fixed Income Fund
- MFS Responsible Canadian Fixed Income Fund
- MFS Global Aggregate Fixed Income Fund
MFS updated the Investment Philosophy section of the above noted fixed income funds. The language changed from providing a “moderate real rate of return“ to a “total rate of return.”
MFS Global Equity Fund
The expected range of securities is changing from 80 - 130 to 80 – 100.
MFS Global Research Fund
The expected range of securities is changing from 125 - 175 to 110 – 150.
Our View
We are comfortable with these small changes to the investment policies. The change in language for the fixed income strategies reflects the current interest rate environment. This environment is one where achieving positive real returns is no longer certain.
How does this influence plan sponsors and plan members?
Plan sponsors or plan members do not have to take any action as a result of these changes.
Questions?
Please contact your Sun Life Group Retirement Services representative.
Copies of the changed investment policies will become available on Sun Life’s Plan Sponsor Services website at sunlife.ca/sponsor. When logged into the website, under the Administration and reporting tab, choose Group Retirement Services. Then, on the top navigation menu, choose Investments>> Governance reports.
