Mfs Global Alternative Strategy Fund Class A (MM) (NASDAQ:DVRAX)
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MFS Investment Management®
(MFS®) announced
today the launch of MFS®
Diversified Target Return Fund (DVRAX). The fund’s
investment objective is to seek a target total return that meets or
exceeds the rate of inflation over a full market cycle by five
percentage points. The fund will use an unconstrained benchmark
approach, seeking lower correlation and lower volatility relative to the
broader equity market to achieve more consistent returns through a
combination of individual security selection, top down market allocation
and active currency management.
The fund will utilize a combination of fundamental and quantitative
analysis for individual security selection within fourteen underlying
sleeve portfolios with the flexibility to invest in equities across all
market capitalizations, styles (e.g. growth, value), regions and
industries. The fund also has the ability to take short positions and
may invest in fixed income securities as well. In addition, MFS has
engaged UBS Global Asset Management (Americas) Inc. (“UBS
Global Asset Management”) as a subadvisor to
the fund to actively manage the fund’s market
and currency exposures through the use of derivatives. As a result, to
meet its investment objective, the fund will seek to generate returns
from three independent sources: individual security selection, top down
market allocation and active currency management.
“The innovative approach of MFS Diversified
Target Return Fund allows active management of all the major sources of
risk and return in a portfolio, releasing some of the investment
constraints of more traditional approaches by tactically adjusting
market and currency exposures,” said James
Jessee, President of MFS Fund Distributors, Inc., the retail mutual fund
sales arm of MFS. “The fund can complement a
portfolio of traditional investments with the diversifying
characteristics of a flexible, institutional-quality, alternative
investment strategy for mutual fund investors.”
UBS Global Asset Management has more than 25 years of experience
managing globally diversified, active asset allocation portfolios for
institutional and private clients. By applying the firm’s
proprietary risk/return analysis, the fund may increase or decrease its
overall exposure to certain markets or currencies through derivatives in
an effort to manage volatility and provide more consistent returns.
“We are excited to work with MFS to bring
this investment capability to its clients,”
said Neil Williams, Managing Director and Head of Asset Allocation for
UBS Global Asset Management. “The investment
tools and techniques utilized by MFS Diversified Target Return Fund,
formerly accessible to only the largest institutional investors, are now
available to virtually all investors in an affordable and liquid
vehicle. This fund should enhance their overall diversification, while
managing volatility, with the goal of more consistent returns.”
The fund will be available in multiple share classes from MFS through
financial intermediaries at insurance companies, wirehouses, independent
broker/dealers and registered investment advisors for retail, fee-based
wrap, retirement and institutional accounts.
Joseph Flaherty and Natalie Shapiro, PhD., of the MFS Quantitative
Solutions Team, will oversee MFS’ individual
security selection process for the fund and will serve as lead portfolio
managers for the fund. Flaherty is Co-Director of the MFS Quantitative
Solutions Team and Portfolio Manager of the firm’s
asset allocation products. He has been with MFS since 1993 and has
worked in the industry for more than 20 years. Shapiro is a Portfolio
Manager and Quantitative Fixed Income Research Analyst. She has been
with MFS since 1997 and has worked in the field since 1986.
Neil Williams and Tom Clarke will lead the UBS Global Asset Management
team responsible for managing the market and currency exposures through
derivatives. Williams has investment strategy responsibility for all the
firm’s multi-asset funds. He has worked in
the asset management industry for 17 years, including having previously
served as Chief Global Strategist at Goldman Sachs for six years.
Clarke, with 17 years experience in the industry, is Managing Director
and Head of Currency Analysis and Strategy for UBS Global Asset
Management.
MFS manages $204 billion in assets on behalf of more than 5 million
individual and institutional investors worldwide as of September 30,
2007. The company traces its origins to 1924 and the creation of America’s
first mutual fund.
The fund will typically make extensive investments in derivative
instruments, including futures, options and leveraged instruments.
Derivative instruments will increase price fluctuation.
The value of the fund's investments in derivatives may rise or fall
more rapidly than other investments. For some derivatives it is possible
for a fund to lose substantially more than the amount invested in the
derivative investment and therefore can involve leverage. The fund may
invest in foreign/emerging markets securities, which are more
susceptible to interest rate, currency exchange rate and economic, and
political risks. These risks are magnified in emerging and developing
markets.
Before investing, consider the fund's investment objectives, risks,
charges, and expenses. For a prospectus containing this and other
information, contact your investment professional or view online at
mfs.com. Please read the material carefully.
MFS Fund Distributors, Inc
500 Boylston St. Boston, MA 02116
12512.9