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MFS Launches Two Equity Income Funds

The Boston-headquartered investment manager has launched US and global equity income funds for investors looking for both dividend yield and long-term growth.
MFS Investment Management has launched two Luxembourg-domiciled equity income funds.
The MFS Meridian Funds – Global Equity Income Fund and the MFS Meridian Funds – US Equity Income Fund will seek total returns through a combination of current income and capital appreciation.
The global equity income fund will be managed relative to the MSCI ACWI High Dividend Yield Index, focusing primarily on large-cap global companies with a combination of dividend yield and long-term capital appreciation. Meanwhile, the US equity income fund will track the S&P 500 Index benchmark, targeting a higher total return by focusing on US companies, also with a combination of dividend yield and long-term capital appreciation potential.
The portfolios will be based on MFS's "blended research" process, which combines fundamental and quantitative analysis to generate two independent sources, offering compatible insights into a company's fundamentals and valuation metrics.
Jonathan Sage, part of the team that has been implementing the research process since 2001, has been appointed lead portfolio manager on the funds. The team also includes portfolio managers Jim Fallon, Matt Krummell and Jed Stocks, and institutional portfolio managers Dino Davis and Jeff McGrew.
“This approach offers a unique source of risk-adjusted return. It is designed to capture the benefits of both quantitative strategies, which have historically performed well in trending markets, and fundamental strategies, which have performed better in more challenging, volatile markets. A combination of both creates something that behaves significantly differently and has the potential to provide greater returns,” Sage said of the launch.
MFS managed $418 billion in assets on behalf of individual and institutional investors worldwide as of the end of August. The company has investment offices in Boston, Hong Kong, London, Mexico City, São Paulo, Singapore, Sydney, Tokyo and Toronto.