MFS Allocation (Target Risk) Series Enhancements
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 in accordance with the Insurance Companies Act (Canada).
No action required
You don’t have to take any action as a result of the update below. Please review the details about the enhancements to the MFS Target Risk series.
What's new
MFS Investment Management Canada Ltd. (“MFS”) recently announced enhancements to the MFS Target Risk fund series. (MFS Target Risk). MFS Target Risk is currently offered as a three-fund series. It will soon be expanded to a five-fund series. The new five-fund series will give plan members more choice and aligns with most Target Risk investment manager’s standard risk questionnaires.
The three-fund series that is currently available is shown in the table below. On August 1, 2025, these three funds will change names. On September 10, 2025, Sun Life will automatically add two new funds to your plan, if you currently offer the three-fund series.
Current Fund |
New Segregated Fund (September 10, 2025) |
Long Term Strategic Allocation (Fixed Income / Equities) |
|---|---|---|
N/A |
MFS Conservative Allocation |
70% / 30% |
MFS Conservative Allocation |
MFS Moderate Allocation |
60% / 40% |
MFS Moderate Allocation |
MFS Balanced Allocation |
40% / 60% |
N/A |
MFS Growth Allocation |
30% / 70% |
MFS Growth Allocation |
MFS Aggressive Allocation |
20% / 80% |
How will this affect your members?
Your members will see the new names of the three funds after August 1, 2025. Then after September 10, 2025, they’ll have access to the entire five-fund series in their plan. We aren’t moving any money between funds. We’ll send members who currently invest in the MFS Target Risk funds a communication on or around August 4, 2025, notifying them of the changes and encouraging them to review their fund selection(s). You can view a copy of this message.
Sun Life will also adjust the risk profiles in the Risk Tolerance questionnaire to accommodate the five-fund series. Members can find this on our plan member website. We recommend they review their risk tolerance regularly to ensure they are invested in the appropriate fund which aligns to their risk tolerance.
Additional changes to the MFS Allocation Series
MFS also announced that they will add five new underlying funds (i.e. building blocks) to the Target Risk funds. They are:
- MFS Blended Research Global Equity Fund
- MFS Global Small-Mid Cap Equity Fund
- MFS Emerging Market Equity Fund
- MFS US High Yield Fixed Income Fund
- MFS Emerging Market Debt Fund
In order to allocate to these new funds, MFS will re-allocate a portion of each existing fund’s underlying allocations. None of the current underlying funds in the series will be removed as a result of these changes. The reallocations will occur on or around June 25, 2025.
The MFS Target Risk funds’ approach, and portfolio management teams remain unchanged.
New Blended Benchmark Changes
On or around July 1, 2025, MFS will adjust the Target Risk funds benchmarks. The updated benchmarks will better reflect the increased diversification that the above new funds bring to the funds.
- Global equities benchmark: MFS will replace MSCI World Index with the MSCI All Country World Index (ACWI). MFS cites the ACWI index better reflects the funds’ geographic exposures.
- Fixed income benchmark: MFS will add the Bloomberg Global Aggregate Index (Unhedged) index. MFS believes this will allow the benchmark to better match the increased diversification within the global fixed income portion of the portfolio. To balance the addition of this index, MFS will reduce the weight of the FTSE Canada Universe Bond Index.
GRS Investment Solutions View:
We have reviewed these changes and support them. The new five-fund series will allow members more options to match their investment objectives and unique risk profile. The fund additions increase diversification and add some asset classes with higher return potential. We will continue to monitor the funds and provide updates as necessary.
A copy of the new updated Statement of Investment Policies and Procedures will be 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*
*In Quebec, registered as a Group Annuity Plans Advisor.