MFS IM launches a new global and flexible multi-asset fund
12 MAR, 2025
MFS IM has announced this Wednesday the launch of the MFS Meridian® Funds - Global Flexible Multi-Asset Fund, a flexible investment strategy designed to generate alpha through strategic asset allocation, tactical flexibility, and bottom-up (bottom-up) stock selection throughout the global economic cycle.
The fund is co-managed by Pilar Gómez-Bravo, who joined MFS in 2013 and currently holds the position of fixed income portfolio manager and also holds the position of co-director of fixed income investments of the firm, as well as by Kevin Dwan, who has spent two decades at the company and holds the position of equity portfolio manager. The MFS investment platform, in all its breadth, supports Pilar Gómez-Bravo and Kevin Dwan in their investment process.
How does the fund invest?
The portfolio management team sets risk objectives in terms of capital allocation to the assets of the equity segments, debt instruments, commodities, cash and cash equivalents. This team sets these objectives based on an informed opinion about the economic cycle and the main drivers of profits, credit, duration and exchange risk, as part of a long-term valuation framework. This approach seeks to optimize returns by taking advantage of market opportunities, while reducing exposure to downside risk.
Typically, it is expected that the capital allocation to equities will range between 45% and 65%, between 20% and 40% allocation to fixed income, between 4% and 16% to commodities, and between 2% and 10% to cash equivalents. The strategy offers flexibility to deviate from these ranges in periods where substantial anomalies are observed in terms of valuation, volatility or forecast of changes in fundamentals.
The strategy uses all the capabilities of MFS's integrated global analysis platform, which includes a fundamental analysis of equity and credit, as well as a quantitative analysis, in order to develop a unique and proprietary view of the fundamentals and valuation parameters of a company, as well as a stock selection that allows optimization between bottom-up (bottom-up) and top-down (top-down) positioning.
The objective of the strategy is to achieve returns above the average during a full market cycle in relation to its mixed benchmark index, composed of 60% by the MSCI All Country World index and 40% by the Bloomberg Global Aggregate (USD Hedged) Blended index.
Multi-asset investment is a proven effective approach aimed at generating attractive long-term and risk-adjusted returns for investors. MFS has a legacy in managing multi-asset solutions, which began in 1970 with the launch of our first balanced fund. The flexibility of this new strategy allows us to dynamically respond to market changes, whether by taking advantage of equity growth or managing volatility with fixed income. Our goal is to provide solid and competitive returns, while preserving capital during market correction periods, making this fund a possible solution for investors seeking risk-adjusted returns.
Matt Weisser, General Manager of MFS in Europe
