Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Investor Day (2024)
21 slides from Sun Life Financial's investor day presentation, 2024
Slide 1: Playing to Win
MFS Playing to Win
Slide 2: Mike Roberge and Ted Maloney
MIKE ROBERGE Chief Executive Officer Executive Chairman, MFS TED MALONEY Incoming Chief Executive Officer, MFS 2
Slide 3: Positioned for strong and consistent earnings through our focus on world class active asset management
Positioned for strong • The market for active investment management will remain attractive and consistent • MFS has delivered consistent growth earnings through our • MFS is well-positioned for sustained growth focus on providing world class active • MFS will maintain top quartile earnings margin as
Slide 4: MFS Business Overview
MFS BUSINESS OVERVIEW DIVERSIFIED CLIENT AND ASSET BASE Other Americas < 1% AS S E T S ( U S $ ) Asia-Pacific 6% U.S. equities 295 billion US$645B EMEA 6% Firmwide U.S. Assets Under Management1 Non-U.S. equities 246 billion Clients Canada 5% by region 82% Fixed income 80 billion Multi-strategy/other
Slide 5: MFS Net Income and AUM Growth
MFS NET INCOME AND AUM GROWTH U.S. GAAP Net Income AUM1 (US$M) (US$B) +4% +4% CAGR 833 CAGR 599 609 431 2014 2023 2014 2023 1 Represents a non-IFRS financial measure. Refer to the non-IFRS Financial Measures section in the appendix to these slides. 5
Slide 6: MFS has delivered consistent growth
MFS has delivered consistent growth 6
Slide 7: Consistent Source of Dividends for Sun Life
CONSISTENT SOURCE OF DIVIDENDS FOR SUN LIFE Dividends (US$M) $861 $727 $680 $687 $611 $532 $426 $452 $414 $387 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 US$5.8B in dividends were paid in the 10-year period ending December 2023 7
Slide 8: MFS Has Increased Its Market Share of Active Only Long-Term Funds
MFS HAS INCREASED ITS MARKET SHARE OF ACTIVE ONLY LONG-TERM FUNDS1 Other 9% Municipal 4% Total Return 4% Value 32% High Grade 5% Retail AUM by style2,3 Core 14% Growth 32% Distribution: MFS is the 9th largest U.S. retail asset manager4, partnering with leading intermediaries Leading retail financial
Slide 9: Long-Term Disciplined Investment Process Helps Clients Achieve Their Financial Goals
LONG-TERM DISCIPLINED INVESTMENT PROCESS HELPS CLIENTS TO ACHIEVE THEIR FINANCIAL GOALS MFS beats passive benchmarks (5 largest strategies, representing almost half of MFS total assets): Avg. excess % of periods Composite Benchmark returns1 outperforming MFS Large Cap Value Equity Russell 1000® Valu
Slide 10: Over US$70T in Global Active Management and Significant Capital on the Sidelines
OVER US$70T1 IN GLOBAL ACTIVE MANAGEMENT AND SIGNIFICANT CAPITAL ON THE SIDELINES Global AUM (US$T) +6% CAGR +12% There is a record US$6.3T2 of assets in U.S. money markets, waiting on the “sidelines” Tight monetary policies and general market uncertainty prompted investors to move into products wit
Slide 11: Fewer Providers Competing for Capital – MFS Can Gain Market Share
FEWER PROVIDERS COMPETING FOR CAPITAL – MFS CAN GAIN MARKET SHARE All Others In the U.S. Mutual Fund marketplace, 70% of AUM is concentrated within the top US$20T 10 asset managers (up from 57% in 2010)1 Top 10 Refer to the endnotes in the appendix. 11
Slide 12: Our Path to Win
OUR PATH TO WIN Purpose Clients Strategy Scale fixed income by investing in operational capabilities to We exist to create Align with Clients’ needs onboard and manage complex value responsibly and help investors achieve institutional fixed income assets financial goals Grow our defined contribution
Slide 13: MFS Has a Strong Fixed Income Infrastructure, with Significant Capacity to Grow
MFS HAS A STRONG FIXED INCOME INFRASTRUCTURE, WITH SIGNIFICANT CAPACITY TO GROW Fixed income Morningstar assets in top half 1 Multi-sector portfolio management 10Y 5Y 3Y 1Y • Global • North America 98% 86% 59% 96% Sector portfolio management Fixed income: AUM2 • Credit • EMD • Municipals (US$B) • Hi
Slide 14: Planned Launch of Active ETFs Will Meet Growing Demand for Tax Efficient Products
PLANNED LAUNCH OF 5 ACTIVE ETFS WILL MEET GROWING DEMAND FOR TAX EFFICIENT PRODUCTS Mutual fund Stock characteristics characteristics Diversification ETFs Continuous pricing Professional Trading flexibility management Low execution costs Key benefits of ETFs Trading flexibility Tax efficiency Manage
Slide 15: Defined Contribution Strategy
DEFINED CONTRIBUTION STRATEGY DCIO Assets1 (US$B) Total +15.3% MFS DCIO total assets: US$144B2 Top 15 +18.7% $6,070 In the DCIO asset space, the Top 15 asset managers, Top 15 managers including MFS, are gaining market share at the $5,114 expense of smaller firms – the “big get bigger” (including MFS
Slide 16: Setting Winning Objectives
SETTING WINNING OBJECTIVES UNDERLYING NET OPERATING DIVIDEND TO INCOME1,2 GROWTH MARGIN1,2,3 SUN LIFE2 PER ANNUM Maintain position of 5%+ Top quartile 90% of asset manager in terms of net income1 margin 1 Represents a non-IFRS financial measure. Refer to the non-IFRS Financial Measures section in th
Slide 17: Positioned for strong and consistent earnings through our focus on world class active asset management
Positioned for strong • The market for active investment management will remain attractive and consistent • MFS has delivered consistent growth earnings through our • MFS is well-positioned for sustained growth focus on providing world class active • MFS will maintain top quartile earnings margin as
Slide 18: Appendix
Appendix Sun Life | investor vay 18
Slide 19: Forward-Looking Statements
In this presentation, Sun Life Financial Inc. (“SLF” or “SLF Inc.”), its subsidiaries and, where applicable, its joint ventures and associates are collectively referred to as “we”, “us”, “our”, “Sun Life” and the “Company”. Reported net income (loss) refers to Common shareholders' net income (loss)
Slide 20: Use of Non-IFRS Financial Measures
Use of Non-IFRS Financial Measures The Company prepares its financial statements in accordance with international financial reporting standards (“IFRS”). This presentation includes financial measures that are not based on IFRS (“non-IFRS financial measures”). We report certain financial information
Slide 21: Endnotes
Endnotes Slide 4: 2 US and Non-US Mutual Funds, Retail separately managed accounts and Variable insurance trusts comprise “Retail” while Commingled products and Separate & sub-advised accounts comprise “Institutional” as disclosed in the Sun Life Supplement. 3 Strategic Insight as of September 30, 2