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.”