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Products December 6, 2013
MFS Launches Low-Volatility Funds
Asset management firm MFS launched two mutual funds designed to provide equity exposure with less overall volatility.
Reported by PLANADVISER staff
Dubbed the MFS Low Volatility Equity Fund and the MFS Low Volatility Global Equity Fund, the investment products seek capital appreciation with reduced volatility relative to their respective benchmarks—the S&P 500 Index and the MSCI All Country World Index, respectively.
According to a statement from MFS, fund managers will invest in stocks that are attractive from both fundamental and quantitative perspectives. Investment decisions will rely on the firm’s proprietary research.
Each fund seeks to achieve lower levels of volatility than its benchmark through a portfolio construction process utilizing individual stock selection, as well as the elimination of the most volatile stocks in each fund’s investment universe.
The funds are managed by members of the MFS quantitative solutions team. Portfolio managers James Fallon and Matthew Krummell direct the MFS Low Volatility Equity Fund. Fallon is joined by another portfolio manager, Jonathan Sage, on the MFS Low Volatility Global Equity Fund.
The funds are available for purchase in multiple share classes (A, B, C, I and R1–R5) through financial advisers, financial planners, broker/dealers and other financial intermediaries and retirement platforms.
MFS is a global asset manager that strives to integrate research, global collaboration and active risk management.