MFS Investment Management has launched a new fund, the MFS Diversified Target Return Fund.
It will use an unconstrained benchmark approach, seeking lower correlation and lower volatility relative to the broader equity market to achieve more consistent returns through a combination of individual security selection, top down market allocation, and currency management, the company said on Monday.
The fund will use fundamental and quantitative analysis for individual security selection within 14 underlying sleeve portfolios with the flexibility to invest in equities across all market capitalization, styles, regions and industries.
UBS Global Asset Management Inc. will sub-advise the fund, which can take short positions and may also invest assets in fixed income securities.
MFS had $204 billion of assets under management as of Sept. 30.