Portfolio management changes to the MFS Low Volatility and Blended Research strategies

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 fund listed below, which is established as a segregated fund in accordance with the Insurance Companies Act (Canada).

This is an update only and you don’t need to take any action as a result of this news.

MFS recently announced that James Fallon, a member of MFS’ Blended Research Portfolio Management (PM) team, left the firm to pursue other opportunities. Fallon had 26 years of investment experience and joined the Blended Research PM team in 2011. The Blended Research team manages MFS’ low volatility, targeted tracking error, and income-focused strategies. Fallon managed the following funds on Sun Life’s Core platform:

Lead PM:

• MFS Low Volatility Canadian Equity (Low Vol Canadian)
• MFS Low Volatility Global Equity (Low Vol Global)
• Sun Life MFS Low Volatility International Equity (Low Vol International)

Co-PM:

• MFS Blended Research Global Equity (Blended Research Global)
• MFS Blended Research International Equity (Blended Research International)

Jonathan Sage has assumed lead PM responsibilities for the Low Vol Global and Low Vol Canadian strategies. Sage also continues as lead PM on Blended Research Global. Sage has 30 years of investment experience and joined the Blended Research PM team in 2011.

Jed Stocks has assumed lead PM responsibilities for the Low Vol International strategy. Stocks also continues as lead PM on Blended Research International. Stocks has 27 years of investment experience and joined the Blended Research PM team in 2015.

Fallon’s departure follows the previous announcement earlier this year of Matt Krummell, co-PM on MFS’ Blended Research team, retiring on April 7, 2027. Krummell joined MFS in 2001 as a quantitative research analyst before joining the portfolio management team. As a co-PM, Krummell supports all the Blended Research strategies. Krummell will retire with over 31 years of industry experience.  In anticipation of Krummell’s retirement, MFS added Jenney Zhang and Nathan Bryant, both previously analysts on the Quantitative Equity Research team, to the Blended Research portfolio management team on January 1, 2026. Zhang joined MFS in 2011 and has over 19 years of industry experience. Bryant joined MFS in 2015 and has over 10 years of industry experience. 

The Blended Research team utilizes both quantitative and fundamental research to manage their strategies. The team currently consists of 5 PMs that are directly supported by a ten-person Quantitative Equity Team.

MFS uses a team approach to manage their investment portfolios. MFS indicated that the investment philosophy and process won’t change because of the changes to the PM team.

GRS Investment Solutions team view

Fallon’s sudden departure and Krummel’s pending retirement will mean an increased workload for the PM team, and in particular for Sage and Stocks, who have assumed additional lead PM roles. While Fallon was the individual most familiar with the low volatility strategies, we take comfort in the experience and long-tenure of Sage and Stocks, who have worked along side Fallon for over a decade.

We note that the investment process is systematic and similar across the different quantitative strategies at MFS. PMs rely on a shared model that utilizes analyst fundamental research ratings and multi-factor quantitative research scores to build portfolios. Much of the PM’s time is spent reviewing the model inputs and adjusting the portfolio in line with portfolio guidelines and desired risk exposures. 

There will be more key person risk in Sage and Stocks for the immediate future, as newly promoted PMs Jenney Zhang and Nathan Bryant, will take time to get up to full speed. The risk is partially mitigated by the systematic, model-driven investment approach, which reduces reliance on individual PM discretion relative to fundamental strategies.

As a result of the unplanned departure of lead PM Fallon, we have placed the MFS Low Volatility Canadian, Global and International Equity strategies On Watch.

Due to the recent and expected changes to the Blended Research PM team, we have also placed the MFS Blended Research Global and International Equity strategies on Additional Monitoring (least severe Watch List category).

We will continue to evaluate these changes and provide further updates as necessary.