Sun Life Financial Inc T.SLF.PR.H

Primary Symbol: T.SLF Alternate Symbol(s): SLF | T.SLF.PR.C | T.SLF.PR.D | T.SLF.PR.E | T.SLF.PR.G | T.SLF.PR.J | T.SLF.PR.K | SNLFF | SUNFF | SLFIF | SNLIF

Financial Services Insurance - Diversified

Sun Life Financial Inc. is a Canada-based international financial services company, which offers asset management, wealth, insurance and health solutions to individual and institutional clients. Its segments include Canada, United States (U.S.), Asset Management, Asia, and Corporate. The Canada segment provides protection, health, asset management and wealth solutions. It also offers a premier health and wellness virtual care platform. The U.S. segment provides employee and government benefits in the United States. Its business units include group benefits, dental and in-force management. The Asset Management business group includes MFS and SLC Management. MFS is an asset manager offering a comprehensive selection of financial products and services. The Asia segment consists of two business units: Local Markets and International Hubs. It has operations in a number of markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, India and others.

TSX:SLF - Post by User

Sun Life Financial Inc > TD Large Cap Model Portfolio

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Comment by retiredcfon Jun 09, 2020 8:09am

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Post# 31127692

RE:TD Large Cap Model Portfolio

Raising Value — Financials

Raising Manulife Financial Corp. (MFC-T) to 4.0% from 1.8% and Sun Life Financial Corp. (SLF-T) to 3.0% from 1.8%

We believe that the steeper U.S. yield curve is a strong signal to add to lifecos and to start raising the relative sector weight in lifecos over banks. Quantitatively, both Manulife and Sun Life compare favourably with the banks. Manulife's relative 12- month and 24-month forward consensus earnings continue to trend higher versus the banks. As a result, the relative valuation spread has widened further to where Manulife is trading at a considerable discount to the banks. Manulife is trading at 5.4x (12-month forward) and 4.7x (24-month forward) versus Royal Bank of Canada (RY-T, portfolio weight 8.9%) at 9.0x and 8.0x. In a market that may look to add cyclical value quickly, we believe that Manulife has the potential to be a strong near- term performer. We prefer MFC over SLF given MFC's higher sensitivity to the yield curve and its higher cyclical mean reversion upside potential.

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