MFS Launches Two Low-Volatility Equity Funds
BOSTON (December 5, 2013) - MFS announced today the launch of two low-volatility mutual funds, MFS Low Volatility Equity Fund (MLVAX) and MFS Low Volatility Global Equity Fund (MVGAX). The funds are intended to meet the increased demand for investment solutions that provide exposure to equity markets with less overall volatility.
"Despite the substantial gains in stock markets since the Great Recession ended, investors have been reluctant to invest in equities because of market volatility, hindering their ability to meet their long-term investing goals," said Jim Jessee, president of MFS Fund Distributors, Inc. "In general, low-volatility equity funds seek to provide a less volatile return stream to investors than the overall stock markets."
MFS Low Volatility Equity Fund and MFS Low Volatility Global Equity Fund seek capital appreciation with reduced volatility relative to their respective benchmarks indices, the Standard & Poor's 500 Index and the MSCI All Country World Index over a full market cycle. Each fund will invest in stocks that are attractive from both a fundamental and quantitative perspective, leveraging MFS' global research platform of more than 200 investment professionals. Each fund seeks to achieve lower levels of volatility than its benchmark through individual stock selection, the elimination of many of the most volatile stocks in their investment universes, and by using a disciplined portfolio construction process.
"Our approach to low-volatility investing is both disciplined and unique. The portfolio managers are screening out about one-third of the most volatile stocks and then looking for companies that are favored by both our quantitative and fundamental research analysts," added Jessee. "The portfolio construction is disciplined and repeatable and relies on individual stock selection—concepts that resonate with financial advisors and their clients."
The funds are managed by members of the MFS Quantitative Solutions team. James Fallon and Matthew Krummell, CFA, manage MFS Low Volatility Equity Fund. Fallon joined MFS in 1999 and became an equity quantitative analyst in 2001. He has been managing domestic and international quantitative portfolios since 2007. Krummell joined MFS in 2001 as a quantitative equity research analyst and has managed client portfolios since then. Fallon is joined by Jonathan Sage, CFA, on MFS Low Volatility Global Equity Fund. Sage joined MFS in 2000 as a quantitative equity research analyst and was named a portfolio manager in 2005.
The funds are available for purchase in multiple share classes (A, B, C, I, R1–R5) through financial advisors, financial planners, broker/dealers and other financial intermediaries and retirement platforms.
About MFS Investment Management
Established in 1924, MFS is an active, global asset 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, 2013, MFS manages US$397.5 billion in assets on behalf of individual and institutional investors worldwide. Please visit mfs.com for more information.
Important Risk Considerations
The fund may not achieve its objective. The fund's investment strategy to invest in low volatility equity securities may not produce the intended results if, among other things, low-volatility equity securities do not outperform the benchmark. The strategy cannot protect against a loss due to issuer, market, economic, political, regulatory, geopolitical, and other conditions. It is expected that the fund will generally underperform the equity markets during strong, rising markets. Investments in foreign markets can involve greater risk and volatility than U.S. investments.
Before investing, consider the fund's investment objectives, risks, charges, and expenses. For a prospectus, or summary prospectus, containing this and other information, contact your investment professional or view online. Please read it carefully.