Key Morningstar Metrics for Sun Life MFS US Value Fund
- : SilverMorningstar Medalist Rating
- : HighProcess Pillar
- : Above AveragePeople Pillar
- : AverageParent Pillar
MFS Value’s up-and-coming managers have ample support and use a best-in-class approach, earning Above Average People and High Process ratings.
When longtime comanager Nevin Chitkara retired in May 2026, it left an experience gap on the management team. Across his nearly 20-year tenure, he compiled a strong track record over several market cycles. This experience is hard to replace, but the strategy remains in the capable hands of comanagers Katie Cannan and Tom Crowley. Cannan, who has been at MFS for about 13 years, has worked closely with Chitkara since she became comanager here at the end of 2019. MFS then appointed Crowley to comanager at the end of 2024 in anticipation of Chitkara’s retirement. So, while the duo is well-versed in the strategy’s quality-first approach, Cannan has just over six years of portfolio management experience, and this is Crowley’s first charge, so they’re still establishing a stand-alone track record here. That said, the managers will continue to rely on MFS’ impressive, deep central research team for ideas and research support, which should smooth the transition and help them navigate any potential choppy waters.
Investors should anticipate Cannan and Crowley relying on the same time-tested approach that Chitkara used but with some minor tweaks on the periphery. Indeed, they seek undervalued companies with durable business models, strong cash flows, and healthy balance sheets. To find such companies, the managers work closely with MFS’ central research team, which conducts rigorous fundamental research. This thorough research gives the managers conviction to hold stocks for the long term, but light trading does not mean complacency. Since the beginning of 2026, the managers have added mega-cap stocks Amazon.com, Alphabet, and Microsoft, in part, for risk management purposes. So, while these stocks are a little pricier than what the fund has historically bought, the more benchmark-aware approach should help keep performance more in line with its Russell 1000 Value prospectus benchmark.
This strategy has been challenged in recent years. From Cannan’s year-end 2019 start through June 2026, the US mutual fund’s R6 shares’ 9.6% annualized return trailed the Russell 1000 Value Index’s 11.6% rise and lagged more than 80% of its large-value peers. While the portfolio faced some headwinds over the period, choppy stock-picking was also to blame.
Still, this remains a topnotch option for long-term investors.
Sun Life MFS US Value Fund: Performance Highlights
Results since Katie Cannan became a comanager have been underwhelming. From her year-end 2019 start through June 2026, the R6 shares’ 9.6% annualized return trailed the Russell 1000 Value Index’s 11.6% rise. It also trailed more than 80% of its large-value category peers. According to Morningstar’s attribution, choppy stock-picking in key industries such as semiconductors and aerospace and defense weighed on performance. That said, the managers’ preference for low-volatility companies was out of favor for much of the period, which also helped explain some of the underperformance.
This portfolio wasn’t built for rising markets. Because of the managers’ focus on steady, durable businesses with strong free cash flows, the portfolio often provides ballast during downturns. For instance, the strategy held up better than the index and typical peer during the early 2020 coronavirus-driven selloff, in the mid-2023 correction, and the late 2024 through early 2025 drawdown. That said, this downside protection has come at the expense of participation in rallies. Case in point, when the index rose 60.8% cumulatively from its bottom on June 26, 2020, through its peak on Jan. 12, 2022, the fund gained 54.5%.
As markets have continued to rise, the strategy’s struggles have continued. Through the first six months of 2026, when the index rose 16.3%, the fund gained just 7.1% and trailed 83% of its peers. While painful, the managers’ decision to purchase some of the index’s biggest constituents should keep performance closer to that of the index going forward. Plus, this time-tested strategy and MFS’ deep team of analysts make this strategy a solid bounceback candidate for long-term investors.
