Updated Investment Policy for the MFS Allocation (Target Risk) Funds

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, which are established as segregated funds under the Insurance Companies Act (Canada).

On June 28, 2024, MFS Investment Management (MFS) made minor changes to the Statement of Investment Policies and Procedures (SIP&P) of the Allocation (Target Risk) funds – namely the MFS Conservative Allocation, MFS Moderate Allocation and MFS Growth Allocation (the Funds).

The updated SIP&P has minor revisions to the fixed income fund language and changes from T+3 to a T+1 settlement cycle for purchases and redemptions of fund units.

Additionally, the SIP&P now details adjustments to the asset mix for the Funds. The changes to the asset mix for the Funds are minor, increasing the exposure to equity, while decreasing fixed income. The equity increase will be 1 – 2% depending on the fund. Additionally, MFS adjusted the Funds’ benchmarks compositions to reflect the new asset mix.

GRS Investment Solutions View:

We have reviewed these changes and don’t have any concerns about them at this time. The changes are minor. We will continue to monitor the funds.

Do you have to take any action?

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

A copy of the changed SIP&P is 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.

Questions?

Please contact your Sun Life Group Retirement Services representative.