WHY...Because MFS perform very well lately and will continue to grow faster than industry...why....?? MFS is in Asia....and Asia is the next BIG THING....
TORONTO, Oct 23 (Reuters) - Canadian insurer Sun Life Financial Inc. (SLF.TO: Quote, Profile, Research) (SLF.N: Quote, Profile, Research) said on Monday it will not sell its Boston-based fund manager, MFS Investment Management.
Following a strategic review of its subsidiary, the company said it will continue to own and invest in it. In September, Sun Life had hired bankers to advise on alternatives for MFS.
"Sun Life remains committed to the asset management business in the U.S. and MFS is a valuable strategic asset," Chief Executive Donald Stewart said in a statement.
Sun Life's had net income from MFS of $52 million in the third quarter, while assets under MFS' management were worth $175 billion.
Shares of Sun Life, Canada's second largest life insurer, closed at C$45.85 on the Toronto Stock Exchange on Friday. The stock had jumped about 2 percent on Sept. 18, when the company announced it would review its options on MFS.
The reason they are keeping MFS is because no one wants to buy it for the price they want to sell it. Scandals and under-performing growth mutual funds are not an attractive selling point. To take MFS off the market is in effect admitting defeat. It's like putting your house on the market and not getting the price you wanted so you take it off. Now when you go to re-sell it again, all the other buyers know you couldn't convert it before and you are now in a stategically weaker position trying to sell.