MFS Launches Lifetime 2060 Target Date Fund
Provides Plan Sponsors, Advisors Long-dated Investment Option for Younger Workers
BOSTON (December 6, 2016) – MFS Investment Management (MFS) has launched MFS® Lifetime® 2060 Fund, the latest offering in its line of target date funds. The fund gives plan sponsors and plan advisors a long-dated investment option for younger workers in defined contribution plans with more than 40 years ahead of them to save for retirement.
"Target date funds are a compelling option for young savers because they provide a disciplined, systematic way to invest for retirement," said Ryan Mullen, senior managing director and head of MFS' Defined Contribution Investments business. "With a broad need to increase retirement savings across all generations, MFS is pleased to offer our longest-dated Lifetime Fund to the market. This fund will offer younger workers a chance to start investing today for a goal that is over four decades away."
The MFS Lifetime 2060 Fund is a fund of funds, investing substantially all of its assets in other MFS mutual funds. The fund's objective is to seek a high level of total return. From inception the fund will allocate a majority of its assets to U.S. and international stock funds. As the fund moves closer to its target date, it will follow a disciplined glide path to decrease exposure to stock funds and to increase exposure to fixed income funds. By 2060 it will seek total return through a combination of current income and capital appreciation and will have an asset allocation aligned with that of the MFS Lifetime Income Fund.
MFS has offered its Lifetime target date funds since 2005. Over time, MFS has enhanced the diversification among the underlying fund mix of equities, bonds and other non-correlated asset classes and added funds with five-year increments to give investors options more closely aligned to their specific goals. Recently, MFS added several of its MFS Blended Research® Funds as underlying investments in its Lifetime target date funds in an attempt to further enhance the funds' risk/reward profiles and lower overall expenses. MFS also added Class R6 shares to the Lifetime target date fund lineup, giving plan sponsors and advisors another relatively lower-cost option for retirement plan investment lineups.
As of October 31, 2016, MFS managed more than $2.5 billion in the Lifetime Funds lineup. Globally, among its various target risk, target date, asset allocation and multi-asset strategies, MFS manages approximately $48 billion. MFS has managed multi-asset portfolios since 1970.
About MFS Investment Management
Established in 1924, MFS is an active, global investment manager with investment offices in Boston, Hong Kong, London, Mexico City, São Paulo, Singapore, Sydney, Tokyo and Toronto. We employ a uniquely collaborative approach to build better insights for our clients. Our investment approach has three core elements: integrated research, global collaboration and active risk management. As of October 31, 2016, MFS manages US$424.5 billion in assets on behalf of individual and institutional investors worldwide.
Important Risk Considerations
Target Date Funds:
Target date funds are funds with the target date being the approximate date when investors plan to start withdrawing their money. Generally, the asset allocation of each fund will change on an annual basis with the asset allocation becoming more conservative as the fund nears the target retirement date.
The fund may not achieve its objective and/or you could lose money on your investment in the fund. You may experience losses near, at, or after the target date. There is no guarantee of the fund's principal value, including at the target date, or that the fund will provide adequate income at and through your retirement.
Stock markets and investments in individual stocks are volatile and can decline significantly in response to issuer, market, economic, industry, political, regulatory, geopolitical, and other conditions.
Investments in debt instruments may decline in value as the result of declines in the credit quality of the issuer, borrower, counterparty, or other entity responsible for payment, underlying collateral, or changes in economic, political, issuer-specific, or other conditions. Certain types of debt instruments can be more sensitive to these factors and therefore more volatile. In addition, debt instruments entail interest rate risk (as interest rates rise, prices usually fall), therefore the Fund's share price may decline during rising rates. Funds that consist of debt instruments with longer durations are generally more sensitive to a rise in interest rates than those with shorter durations. At times, and particularly during periods of market turmoil, all or a large portion of segments of the market may not have an active trading market. As a result, it may be difficult to value these investments and it may not be possible to sell a particular investment or type of investment at any particular time or at an acceptable price. The price of an instrument trading at a negative interest rate responds to interest rate changes like other debt instruments; however, an instrument purchased at a negative interest rate is expected to produce a negative return if held to maturity. The price of an instrument trading at a negative interest rate responds to interest rate changes like other debt instruments; however, an instrument purchased at a negative interest rate is expected to produce a negative return if held to maturity.
Investments in foreign markets can involve greater risk and volatility than U.S. investments because of adverse market, currency, economic, industry, political, regulatory, geopolitical, or other conditions.
MFS’ strategy of investing in underlying funds exposes the fund to the risks of the underlying funds. Each underlying fund pursues its own objective and strategies and may not achieve its objective.
Diversification does not guarantee a profit or protect against a loss.