MFS Investment Management has announced the launch of MFS Managed Wealth Fund (MNWAX), a equity fund that seeks to provide capital growth with moderate volatility.
The fund also aims to mitigate the effects of significant declines in equity markets. In seeking to achieve its total return investment objective, the fund will invest in three underlying MFS funds — MFS Growth Fund, MFS Value Fund and MFS Institutional International Equity Fund — for exposure to US and international equities.
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The fund will also use derivative instruments to manage its net exposure to the equity market, based on its management team’s view of risk and reward opportunities.
"This unique fund offers investors broad global equity exposure through three well-established MFS funds, with an eye on lowering volatility," said Jim Jessee, president of MFS Fund Distributors, Inc., and co-head of Global Distribution for MFS.
"This fund enhances our suite of outcome-oriented funds for investors and advisors looking for market exposure with strong equity diversification and risk management characteristics."
Portfolio manager James Swanson, MFS’ chief investment strategist, will serve as the fund’s lead manager. Joining him are Michael W. Roberge, MFS president and chief investment officer, William J. Adams, co-head of MFS’ Fixed Income Department, Barnaby M. Wiener, an international equity portfolio manager and Robert M. Almeida, Jr., an institutional equity portfolio manager.
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By GlobalDataThese portfolio managers are responsible for determining the target strategic allocations to the underlying funds and actively managing the fund’s net asset class exposure.
MFS expects the fund’s target allocation to be equally weighted among the three underlying funds. The management team will have the ability to reduce the fund’s exposure to the equity market and/or currency markets and potentially add exposure to additional asset classes primarily through the use of a tactical overlay.
The overlay will use derivative instruments, including futures, forward contracts, options, structured securities and swaps. In addition, MFS may seek to limit the fund’s exposure to certain extreme market events.
"The three underlying funds have well-established track records and managers with disciplined, repeatable investment processes. We believe we can add value through the security selection in the underlying funds, strategic allocation and actively managing the fund’s asset class exposure," added Jessee.
MFS Managed Wealth Fund will be available for purchase in multiple share classes (A, B, C, I and R1 – R4) through financial advisors, financial planners, broker/dealers and other financial intermediaries and retirement platforms.
