This formula has been the basis for MFS1 success. And that since it launched North America’s first mutual fund almost a century ago. Sun Life has been a partner in this process for 40 years. 2022 marks the two companies’ ruby anniversary.

Rigorous selection and continuous review

Every member of the investment team is responsible for ongoing risk assessment. Because it’s impossible to cancel risk, MFS employs a rigorous process to watch it every step of the way.

In particular, it focuses on analyzing the fundamentals, so it can assess risk from all angles. Research teams examine each stock under consideration.

And each selected fund undergoes a continuous risk review process – every day, every month and every six months.

Risk-aware culture

Why is MFS so thorough in its risk analysis? It’s to understand any hidden risks in a company and its securities. In doing so, MFS tries to create long-term value by allocating capital responsibly.

MFS believes it is important to foster a risk-aware culture on its investment teams. They want to understand every material risk to that company. Each risk assessment must convince the teams of a company’s durability.

Picking the right titles to add value is the first key element in the MFS formula. The second is managing downside risks, which is the likelihood that your investment's value will lower. For MFS, it matters as much as capturing the upside risk, which is the likelihood that it will increase. By taking advantage of opportunities, MFS Sun Life funds may reap the rewards when markets are at their peak. In that case, they don’t overpay for a title.

In its long and storied existence, MFS not only survived the Great Depression. It provided its investors with steady income during one of the worst financial and social crises in history. MFS did not missed paying a company dividend between the years 1929 and 1940. All through a total collapse and partial recovery of stock prices.

Sustainability matters

MFS also looks at sustainability factors as part of its active risk management process. Before selecting securities for the funds, MFS integrates ESG factors into their investment research. They do that to understand any company-specific risks within the portfolios.

Sustainability is a key part of MFS’s active risk management formula. When risks are reduced, the return potential increases. By applying its rigorous formula, MFS seeks to provide investors with long term growth potential. All in line with the investment objective and risk rating of each Sun Life MFS Fund.


Sun Life MFS Funds | Great performance. Better ride.

Sun Life MFS Funds are built to deliver long-term growth by investing capital responsibly.  Over time, they’ve delivered great performance, with a smoother experience. Are you ready?

Important information

1 MFS Investment Management or MFS refers to MFS Investment Management Canada Limited and MFS Institutional Advisors, Inc. MFS Investment Management is the sub-advisor to the Sun Life MFS Funds; SLGI Asset Management Inc. is the registered portfolio manager.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the fund’s prospectus. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

The views expressed in this commentary are those of the authors and are subject to change at any time. Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent of any mutual funds managed by SLGI Asset Management Inc. or sub-advised by MFS. These views are not to be considered as investment advice nor should they be considered a recommendation to buy or sell.

Information presented has been compiled from sources believed to be reliable, but no representation or warranty, express or implied, is made with respect to its timeliness or accuracy. This commentary may contain forward-looking statements about the economy and/or markets; their future performance, strategies or prospects. Forward-looking statements are not guarantees of future performance, are speculative in nature and cannot be relied upon.