MFS Investment Management has launched the MFS Meridian Funds – Prudent Capital Fund, that consists of a global equity strategy with flexibility to strategically allocate to selective credits in the bond market.
The fund, available to investors through the Luxembourg-domiciled MFS Meridian Funds range, can allocate a portion of its assets to cash in order to mitigate downside risks by reducing the overall market exposure.
It seeks to outperform the MSCI World Index with below-average volatility relative to the index over a full market cycle.
The management team, composed of Barnaby Wiener (pictured), portfolio manager of MFS Meridian Funds – Prudent Wealth Fund, and David Cole, fixed income portfolio manager, considers buying stocks and bonds when it believes they are attractively valued and can yield positive returns over the long term.
The fund is not constrained by benchmark, region or market capitalisation.
“It’s been almost eight years since we’ve had a significant downturn in the markets. This market cycle, like all cycles before it, will eventually end, and investors will rediscover the importance of capital preservation.
“We’ll likely see a lower-return environment in the years ahead, which will put added importance on the ability to generate outperformance and manage downside risks”, said Lina Medeiros, president of MFS International.
As at 31 December 2016, MFS managed $425.6bn (€396.2bn) of assets.