Sun Life Scraps Plans to Sell MFS

Sun Life Financial has decided not to sell its MFS Investments subsidiary, the company announced Monday. Improved profits and assets changed the company’s decision; revenue rose 8.7% in the first half of the year, leading to a profit of $92 million, up 29% from $71 million in the first half of 2005.

However, the company has continued to lose assets. Through July 31, outflows have totaled $3.7 billion this year, the fourth highest in the industry. MFS has continued to lose assets since the 2000-2002 bear market and subsequent trading scandal.

“We conducted a thorough and disciplined assessment and there was a high degree of interest in partnering with MFS,” said Donald A. Stewart, CEO of Sun Life in a statement. “Sun Life remains committed to the asset management business in the U.S., and MFS is a valuable strategic asset. Together with the senior management of MFS, we will focus on improving performance and profit margins and expanding its global investment and distribution platforms.”