New MFS Fund Adds Twist on Other Target Funds
   The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
Wednesday, September 06, 2006

New MFS Fund Adds Twist on Other Target Funds

Merger rumors are not stopping MFS Investment Management from adding to its fund lineup. The Boston-based fund manager launched a tactical target asset allocation fund this week. Unlike most target date asset allocation funds, the portfolio managers of the new offering will tweak the fund's portfolio based on market conditions.

The MFS Diversified Income Fund is one of a growing number of what are best known as life cycle funds. While life cycle funds have been among the top selling products in the fund industry for the past few years, the increasing number of offerings is making it more difficult for products to stand out.

Robert J. Manning, CEO and chief investment officer of MFS, called the investment strategy used in the fund "highly distinctive" and noted that it combines income generation with a growth component that seeks to lessen inflation's effects on purchasing power.

MFS' fund will differ from many in that it will reallocate its assets among five asset classes based on the outlook for each. James Swanson, MFS' chief investment strategist and head of the firm's quantitative group, will be responsible for determing the target weighting for the fund.

The five asset classes used by the fund will include high yield bonds, government securities, real estate investment trusts (REITs), U.S. value stocks and emerging markets debt. Sun Capital Advisors will act as the subadvisor on the REIT component of the fund.

Printed from:

Copyright 2006, InvestmentWires, Inc.
All Rights Reserved
Back to Top