Q: Of these two, which do you prefer and why? Or would you not be buyers at these prices? Thanks!
5i Research Answer:
We have long preferred SLF and continue to do so. It has been a more conservatively run company, and did not get into trouble in the 2008 financial crisis. MFC made and lost a major bet on equities back then and got into trouble and had to cut its dividend. MFC's internation division adds some risk, and SLF is simply more conservative overall. MFC is cheaper, but SLF has still outperformed. We would be comfortable buying today at veyr low current valuations for both.