MFS Launches Target Total Return Fund

MFS Investment Management unveiled a new Diversified Target Return Fund (DVRAX) that will use quantitative as well as fundamental analysis in its investment strategy, and aims at “a target total return that meets or exceeds the rate of inflation over a full market cycle by five percentage points,” while at the same time “seeking lower correlation and lower volatility relative to the broader equity market.”

Boston-based MFS says in its February 4 announcement that the fund’s managers will invest without regard to market cap, style, industry or region, and may short securities and take positions in fixed income. A sub-advisor, UBS Global Asset Management (Americas) Inc. will use derivatives “to actively manage the fund’s market and currency exposures.”