MFS LifePlan Target Date Funds 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 LifePlan Target Date series.
What’s new
MFS Investment Management Canada Ltd. (“MFS”) recently announced enhancements to the LifePlan Target Date fund series (LifePlan funds).
MFS will add five new underlying funds (i.e. building blocks) to the LifePlan funds to enhance diversification across geography, market capitalization and credit. They are:
- MFS Blended Research Global Equity
- MFS Global Small-Mid Cap Equity
- MFS Emerging Market Equity
- MFS US High Yield Fixed Income
- MFS Emerging Market Debt
In order to integrate these new underlying funds, MFS will re-allocate a portion of each existing funds’ underlying allocations. MFS will not remove any of the current underlying funds in the LifePlan series as a result of these changes. The reallocations will occur on or around June 25, 2025.
The MFS LifePlan funds’ approach, portfolio management teams, strategic glidepath, and fees remain unchanged.
LifePlan Benchmark Changes
On or around July 1, 2025, MFS will adjust the MFS LifePlan funds’ benchmarks. The updated benchmarks will reflect the increased diversification that the above new funds bring to the series and are changing as follows:
Global equities: MFS will replace MSCI World Index with MSCI All Country World Index (ACWI). While MSCI World includes only developed markets, ACWI includes emerging markets stocks and MFS believes that ACWI is a better reflection of the funds’ geographic exposures.
Fixed income: 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 funds. 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 are comfortable with them. ACWI is a more commonly used global equity benchmark than MSCI World and target date managers have been diversifying their fixed income exposures. We’ll 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.