MFS Global Equity Portfolio Manager Changes and Fund Updates

This is an update only and you don’t need to take any immediate action as a result of this news. However, it is important to monitor the MFS Global Equity Fund closely and review its suitability in your plan(s) given the updates below.

Portfolio Management Team Update

MFS recently announced that long-tenured co-lead Portfolio Manager (PM) Roger Morley would be giving up his responsibilities on the MFS Global Equity Fund (the Fund) as of December 31, 2026.  In advance of this, Colin Moore, Analyst, will join Roger Morley and Ryan McAllister on the portfolio management team as a co-lead PM on March 31, 2026.

Morley has been a PM on the Global Equity strategy since 2009 and has been at MFS since 2002, when he joined as a research analyst. He is based in London and will continue to also focus on managing the MFS European Core Equity strategy.

Moore joined MFS in 2014 as an equity research analyst and has 20 years of investment experience. He currently covers North American Financials as the sector team leader and is also part of the Technology sector team. MFS conveyed that Moore’s approach to security selection is aligned with the investment style of the Fund. MFS informed us that Moore’s research coverage transition details will be shared with us once available but is expected to be completed prior to the end of 2026.

For the remainder of 2026, the Fund will be managed by a three-person PM team based in different locations – London, Boston, and Toronto. MFS doesn’t believe the geographies will be an obstacle to team cohesion and decision-making. Other MFS strategies have had similar PM team structures.

MFS uses a team approach that relies on analyst recommendations to manage their investment portfolios. Analysts pitch their recommendations to the PM teams and the PMs can include them in their portfolios, dependent upon the stock’s fit with the strategy’s mandate, the portfolio’s other holdings, and the PM team’s own views. MFS indicated that the investment philosophy and process won’t change as a result of the changes to the portfolio management team.

Decline in MFS Global assets under management

Importantly, we note that the Fund has underperformed its benchmark and peers in recent years, which has resulted in a significant decline in assets under management (AUM). AUM in the underlying strategy has declined from US$50.8 billion in December 2019 to US$9.5 billion in December 31, 2025, with the most pronounced declines in the last two years.

Sun Life GRS Investment Solutions team view

Following the PM announcement, we met with MFS and Colin Moore in February 2026. We view Morley’s transition off the Fund as a significant loss, given his experience and tenure. MFS stated that the decision for Morley to leave the Fund was mutual between the firm and Morley. It is notable that Morley is staying at MFS and continuing to manage European equities. MFS described the PM change as a natural evolution for the strategy, noting that Morley is expected to retire in a few years. However, we also believe that the pressures stemming from underperformance and asset outflows may have affected the timing of the change.

Moore is ramping up his knowledge of the portfolio prior to officially assuming the PM role, particularly in sectors where he is less familiar. Moore noted that he has worked with Morley and McAllister as a research analyst pitching stock ideas for a decade. Moore has a research background in both Financials and Technology, two significant sources of stock selection underperformance in the Fund. Moore does not have prior PM experience, except as a coordinator on MFS’s Canadian Research Equity strategy. We believe Moore faces a steep learning curve as he gains PM experience, gets up to speed in the sectors of the market he has not covered, and develops a rapport with co-PM McAllister. Moore didn’t express any convictions about making significant changes to the Fund, but he did indicate that he will immediately contribute to the dialogue and expects his influence on the strategy to gradually increase over time.

Due to the PM changes and the significant decline in AUM, we have placed the MFS Global Equity Fund On Watch. We will continue to closely monitor the PM team, strategy, and asset flows, and provide further updates if necessary.