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A CASE FOR ACTIVE INVESTING

Investors are increasingly focused on short-term market events and volatility, often to the detriment of their long-term goals. At the same time, many aren't sure whether to take an active or passive investment approach. They need facts, insight and guidance to understand their options and take appropriate action.

MFS, an active manager since 1924, has the expertise and the resources to help. We also employ a disciplined, consistent investment process guided by three core principles — integrated research, global collaboration and active risk management — that drives long-term results.

CHALLENGE

GET CLIENTS TO LENGTHEN THEIR TIME HORIZON

SOLUTIONS

Michael Roberge, President & CIO

INSIGHTS
  • The average investor holding period for a stock is 1.67 years, down from 10+ years in the 1970s and 5+ years in the mid-90s.*
  • Short-term investment manager incentives reinforce short-term decision-making. A recent CFA Institute survey found that 42% had more than half their compensation tied to annual performance.

RESOURCES

Login for ideas to help clients lengthen their time horizon and see the potential benefits of actively managed strategies.
*Source: Ned Davis Research. Data as of 12/31/12

This publication is authorized for distribution only when preceded or accompanied by a prospectus, or summary prospectus, for the portfolio being offered. Consider the fund's investment objectives, risks, charges and expenses. Contact MFS or view online. Read it carefully.
CHALLENGE

DISPEL INVESTING MISCONCEPTIONS

SOLUTIONS

David Connelly, SVP, Director of Global Product

INSIGHTS
  • Actively managed large-blend funds outperformed passively managed funds 78% of the time, based on the last 10 rolling 10-year periods ended June 30, 2013.*
  • While passive investments are potentially cheaper than active investments, discuss with clients the long-term costs/benefits of both.

RESOURCES

Login for ideas to help clients lengthen their time horizon and see the potential benefits of actively managed strategies.
*Source: Morningstar Direct. For purposes of this analysis, all share classes used (active, passive, and index funds), excluding load-waived classes, in the Large Blend Morningstar category for the rolling 10-year periods from 6/30/03 - 6/30/13.

This publication is authorized for distribution only when preceded or accompanied by a prospectus, or summary prospectus, for the portfolio being offered. Consider the fund's investment objectives, risks, charges and expenses. Contact MFS or view online. Read it carefully.
CHALLENGE

IDENTIFY AN ASSET MANAGER WITH A LONG-TERM VIEW

SOLUTIONS

Michael Roberge, President & CIO

INSIGHTS
  • MFS believes long-term goals require long-term perspectives - we look to take advantage of the arbitrage in the market by lengthening investors' time horizons.
  • Unlike nearly half of asset managers, we evaluate our investment staff on 3- and 5-year performance.

RESOURCES

Login for ideas to help clients lengthen their time horizon and see the potential benefits of actively managed strategies.

This publication is authorized for distribution only when preceded or accompanied by a prospectus, or summary prospectus, for the portfolio being offered. Consider the fund's investment objectives, risks, charges and expenses. Contact MFS or view online. Read it carefully.