MFS launches diversified fund

MFS Investment Management has launched a fund with the goal of beating long-term inflation with lower volatility.
The new MFS Diversified Target Return Fund (DVRAX) is designed to seek a target total return that meets or exceeds the rate of inflation over a full market cycle by 5%.
The fund allows active management and portfolio risk and return, James Jessee, president of Boston-based MFS Fund Distributors (a retail mutual funds arm of MFS).
Mr. Jessee said DVRAX also has the ability to take short positions and can also invest in fixed incomes securities in addition to tactically adjusting to marker and currency exposures.
“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,” said Mr. Jessee, in a statement.
The UBS Global Asset Management will serve as a sub adviser to the DVRAX fund in order to actively manage the investment’s market and currency exposures through derivatives, MFS officials also announced.
The fund will be available in multiple share classes from MFS through insurance companies, wirehouses, independent broker/dealers and registered investments advisers. MFS manages $204 billion in assets.