Flexible Fund Offers Broad Equity Exposure, Potentially Lower
Volatility than Market
"This unique fund offers investors broad global equity exposure through three well-established MFS funds, with an eye on lowering volatility," said
MFS expects the fund's target allocation to be equally weighted among the three underlying funds. The management team will have the ability to reduce the fund's exposure to the equity market and/or currency markets and potentially add exposure to additional asset classes primarily through the use of a tactical overlay. The overlay will use derivative instruments, including futures, forward contracts, options, structured securities and swaps. In addition, MFS may seek to limit the fund's exposure to certain extreme market events.
"The three underlying funds have well-established track records and managers with disciplined, repeatable investment processes. We believe we can add value through the security selection in the underlying funds, strategic allocation and actively managing the fund's asset class exposure," added Jessee.
Established in 1924, MFS is an active, global asset manager with investment offices in
Important Risk Considerations
The fund may not achieve its objective and/or you could lose money on your investment in the fund.
Stock markets and investments in individual stocks are volatile and can decline significantly in response to issuer, market, economic, industry, political, regulatory, geopolitical, and other conditions.
Investments in foreign markets can involve greater risk and volatility than U.S. investments because of adverse market, economic, industry, political, regulatory, geopolitical, or other conditions.
Investments in derivatives can be used to take both long and short positions, be highly volatile, result in leverage (which can magnify losses), and involve risks in addition to the risks of the underlying indicator(s) on which the derivative is based, such as counterparty and liquidity risk.
The fund’s strategy to reduce its exposure to the equity and/or currency markets represented by the underlying funds and to potentially expose the fund to asset classes and/or markets in which the underlying funds have little or no exposure may not produce the intended results. In addition, the strategies MFS may implement to limit the fund’s exposure to certain extreme market events may not work as intended, and the costs associated with such strategies will reduce the fund’s returns. It is expected that the fund will generally underperform the equity markets during periods of strong, rising equity markets.
Please see the prospectus for further information on these and other risk considerations.
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 at mfs.com. Please read it carefully.