A large Canadian financial services company has decided to hang on to a U.S. money manager and make efforts to increase its earnings.
Sun Life Financial Inc., Toronto, says it has decided against pursuing outside offers for MFS Investment Management, Boston.
“Together with the senior management of MFS, we will focus on improving performance and profit margins and expanding its global investment and distribution platforms,” Sun Life Chief Executive Donald Stewart says in a statement about the decision.
Sun Life announced Sept. 18 that it had retained investment bankers to provide advice on strategic alternatives for MFS.
“We conducted a thorough and disciplined assessment, and there was a high degree of interest in partnering with MFS,” Stewart says.
But Sun Life has concluded that MFS is a valuable strategic asset, and MFS net income increased 37% in the third quarter, to $52 million, Sun Life says.