MFS Diversified Income Fund - Why does income diversification matter?

Sun Life MFS Diversified Income Fund
*Income - simplified.* 

Investors face a lot of pressure right now. With today’s volatility, inflation and interest rate concerns, it’s not easy for them to balance risk and reward. This has prompted many income-seeking investors to take on more risk to achieve higher income in both bond and equity markets.

• Sun Life Diversified Income Fund is a unique, multi-asset, retirement focused, income generating product managed by our most celebrated
  sub-advisor MFS.
• This solution is intended to help advisors mitigate the short-term as well as long-term volatility for their clients and pays a fixed monthly distribution for consistent income ~5% range.
• Built as a Balanced Portfolio, this strategy captures six income-generating asset classes, including dividend-paying stocks, global REITs, U.S. high yield bonds, Canadian bonds, and emerging markets debt.

Click the link here to learn more about how the fund is structured or access the fund profile here on our SLGI website. 

We have also added our new pdf brochure on why does income diversification matter, so please find it attached along with the excel sheet containing historical distributions per unit for the fund (as of Q1, 2020).

Fund Codes 

Performance Highlights

• YTD (As of August 31, 2025) the Sun Life MFS Diversified Income Fund has outperformed the Canada Fund Global Neutral Balanced Benchmark 5.18% vs 4.56% respectively.
  
  

Source: Morningstar

• Furthermore, as shown in the table below, this is a pure income mandate in the traditional sense where the distribution yield is generated and earned from the underlying asset classes directly as opposed to being captured as a percentage from the Return of Capital (RoC) like in some other key competitor fund cases when compared against side by side to our MFS strategy.
• 
  RoC has the potential to allow you to receive a return on your investment without depleting your principal, ensuring that your investment retains its original value.

Source: Morningstar

Sun Life Global Investments & MFS Investment Management

• In 1924, MFS (Massachusetts Financial Services) created the first-ever mutual fund. Today, they are a top 5 ranked investment management firm in North America managing over ~$800B in AUM.
• Across 8 global research offices, MFS employs 117 Fundamental research analysts, 103 Portfolio Managers, 11 quantitative research analysts, and overall, manage 12 Global, regional, and country-specific strategies with decisions being made by individuals on the ground, globally.
• In 1982, Sun Life purchased MFS Investment Management to partner with one of the top fund management players in the industry.
• The fund managers strongly believe in having in-house research team to support their views and where they see markets heading. They’ve leveraged a comprehensive global in-house research team since 1932.
• The MFS Investment Process is built on three key pillars: Collective Expertise, Long-term Discipline, and Active Risk Management.

For more information on the latest opportunities with MFS visit the SLGI website here. For our other star performers on the wealth shelf, please access the link here.

Data as of July 31, 2025. Returns longer than 1 year are annualized.

Money Market Funds

Mutual Funds

Sun Life Money Market Fund – Series F – 2.42%* 

*Seven-day yield as of August 29th, 2025, NET of fees

Sun Life Money Market Fund – Series A – 2.30%* 

*Seven-day yield as of August 29th, 2025, NET of fees

*Advisor trailing commissions of 10 bps on Series A front end load

Segregated Funds 

Sun GIF Solutions Sun Life Money Market Investment – Series F – 2.31% 

*Seven-day yield as of August 29th, 2025, NET of fees

Sun GIF Solutions Sun Life Money Market Investment – Series A – 2.08% 

*Seven-day yield as of August 29th, 2025, NET of fees

Segregated Funds

Sun GIF Solutions DCA Daily Interest – Series F – 2.19%*

*Seven-day yield as of August 29th, 2025, NET of fees

Sun GIF Solutions DCA Daily Interest – Series A – 2.02%*

*Seven-day yield as of August 29th, 2025, NET of fees

*Upfront Advisor trailing commissions on Series A front end load (1%) and chargeback (3%)

Required On New Contract: Funds can be held in the DCA Daily Interest for 12 months, fund switch instructions required in the first 90 Days of deposit date

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Guaranteed Income Rates for Life as of September 2^nd

Please find attached our Weekly Market Monitor and link to our MFS Week in Review for the week ending August 29th, 2025.

Top takeaways from last week:

• The Canadian labour market sent mixed signals in June. Payroll employment fell by 0.2%, following a 0.1% increase in May. However, job vacancies increased by 2.5% over the same period, offsetting April and May declines.
• The Canadian economy shrank more than expected in Q2, contracting 1.6% from the previous quarter – the first quarterly contraction since Q3, 2023. Driving the downturn were the effects of tariffs, as both imports from and exports to the U.S. declined.