Sun Life MFS Global Value Fund

Fund commentary | Q1 2024

Opinions and commentary provided by sub-advisor MFS Investment Management Canada Limited.

Market review

Global equity markets started the year strong, as inflation fell and the prospect of lower interest rates fostered optimism for a pick-up in the global economy. Market returns were largely driven mostly by multiple expansion rather than higher earnings growth. Only selective parts of the market have seen earnings growth. The strongest sectors have been information technology, communication services and financials. Defensive areas like utilities, consumer staples and health care have lagged the market.

From a style perspective, growth beat value during the first quarter of 2024 (Q1). The encouraging news is that the equity market performance has meaningfully broadened as sectors outside the technology stocks popularly called “Magnificent Seven” also participated in the rally. Valuations look stretched in pockets, as share price gains were driven by enthusiasm in artificial intelligence (AI) and defense stocks and bitcoin ETFs. As markets focussed on such sectors, a set of value stocks were left behind.

Performance review

For the three months ending March 31, 2024, Sun Life MFS Global Value Fund F (the “Fund") provided a return of 9.2%. This compares with returns of 11.7% for the Fund's benchmarks, the MSCI World Index CA$ over the same investment period.

Stock selection in the industrials and financials sectors contributed to relative performance.

  • Apple - Not owning shares of the computer and personal electronics maker contributed to relative returns. The stock declined as the company reported a slowdown in iPhone demand in China. App store revenues from China were also below analyst expectations. The stock price suffered further as the U.S. Department of Justice filed a civil antitrust lawsuit alleging the company monopolized the smartphone market by discouraging innovation and competition.
  • Tesla - Not owning shares of electric vehicle manufacturer benefited relative results. Tesla’s stock fell following six straight quarters of softer-than-anticipated earnings. The company’s strategy to sacrifice pricing and margins to drive sales since late 2022, has hurt the stock.
  • Eaton - The portfolio's overweight position in the diversified power management company enhanced relative returns. Eaton’s earnings exceeded expectations and the company raised its guidance. Megaprojects in reindustrialization, reshoring, and electrification helped drive demand for the company.

Stock selection in information technology, communication services, consumer staples and health care detracted relative performance.

  • Nvidia - Not owning shares of the computer graphics processor maker weighed on relative returns. Nvidia’s stock rose as the company reported impressive revenues that beat investor expectations. Continued demand for Nvidia’s generative AI processors helped its stock price.
  • Meta Platforms – Not owning shares of social networking company Meta Platforms weighed on relative performance. Meta’s stock advanced during the quarter as the company reported earnings that beat expectations. Strong advertising revenue growth in China, disciplined approach to capex and the announcement of a quarterly dividend helped the company. Meta’s plans to integrate artificial intelligence within its platforms also supported stock price.
  • UBS - An overweight position in investment management and banking firm UBS detracted relative performance. The stock price came under pressure as the company reported weaker-than-expected profit before tax results on higher costs.

Significant Transactions


  • Masco Corp - (industrials, add)
  • Samsung Electronics -  (information technology, add)
  • Nutrien - (materials, new position)
  • TotalEnergies -  (energy, add)
  • Techtronic Industries -  (industrials, add)


  • Ingersoll Rand - (industrials, trim)
  • Bayer AG - (health care, trim)
  • Petroleo Brasileiro - (energy, eliminated position)
  • KDDI Corp - (communication services, trim)
  • Alphabet Inc. -  (communication Services, trim)

Fund positioning

Our sub-advisor MFS Investment Management (“MFS”) is overweight financials, industrials and energy. MFS is underweight information technology, consumer discretionary and real estate sectors. The underweights are mostly explained by not holding mega-cap stocks such as Apple and Nvidia in the information technology sector and not holding Amazon and Tesla within the consumer discretionary sector. The portfolio does not hold any real estate stocks.

During Q1, the sub-advisor actively added to some holdings to take advantage of price weakness and attractive valuations and trimmed several large positions to manage position size and valuations. Relative to the previous quarter, the portfolio increased its overweight positioning the most in industrials (addition of Masco and Techtronic Industries) and financials (addition of NatWest). It further trimmed its position in communication services (by trimming Alphabet and KDDI Corp) and health care sectors (by trimming Bayer AG and Boston Scientific). As a result, the Fund’s overweight exposure to Europe ex-UK dropped and the underweight positioning in North America and Asia/Pacific ex-Japan fell.

Fund performance

Compound Returns %¹ Since Inception 10 Year 5 Year 3 Year 1 Year Q1

Sun Life MFS Global Value Fund - Series A


8.9 9.0 8.6 17.6 8.9

Sun Life MFS Global Value Fund - Series F


10.2 10.3 9.9 19.0 9.2


11.6 12.4 11.3 25.1 11.7

¹Returns for periods longer than one year are annualized. Data as of March 31, 2024. 

Inception date September 30, 2010. 

Views expressed are those of MFS Investment Management Canada Limited, sub-advisor to select Sun Life mutual funds for which SLGI Asset Management Inc. acts as portfolio manager. 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. These views are subject to change and are not to be considered as investment advice nor should they be considered a recommendation to buy or sell. This commentary is provided for information purposes only and is not intended to provide specific individual financial, investment, tax or legal advice. Information contained in this commentary 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 markets, their future performance, strategies or prospects or events and are subject to uncertainties that could cause actual results to differ materially from those expressed or implied in such statements. Forward-looking statements are not guarantees of future performance and are speculative in nature and cannot be relied upon.

MFS Investment Management Canada Limited is the sub-advisor to the Sun Life MFS Funds; SLGI Asset Management Inc. is the registered portfolio manager. MFS Investment Management Canada Limited has appointed MFS Institutional Advisors, Inc. to provide additional sub-advisory services.

The indicated rates of return are the historical annual compounded total returns including changes in security value and reinvestment of all distributions and do not take into account sales, redemption, distribution or other optional charges or income taxes payable by any security holder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

While Series A and Series F securities have the same reference portfolio, any difference in performance between these series is due primarily to differences in management fees and operating fees. The management fee for Series A securities also includes the trailing commission, while Series F securities does not. Series A securities of the fund are available for purchase to all investors, while Series F securities are only available to investors in an eligible fee-based or wrap program with their registered dealer. Investors in Series F securities may pay a separate fee-based account fee that is negotiated with and payable to their registered dealer.