You hear a lot of conversation on both sides of the portfolio management issue. Some people swear by the index: that collection of stocks that’s built upon the strength of a (usually) growing economy. The problem is, when the economy tanks so do your investments, as exampled by the recent plunge in market value following the Chinese volatility. It’s times like these that people are starting to remember that with no one at the helm, an unmanaged index fund will just tip over the cliff with the rest of the market. Though an actively managed fund is no guarantee that a portfolio will dodge the catastrophe, there are definitely actively managed funds which succeed in this endeavor. The team at MFS is one of those teams that is able to pull of this financial feat over and over again.
They do it with three specific methods
- MFS has a team of investment managers all around the world. It is well-established that The Market is far too big for one person to comprehend its behavior. That’s why actively managed funds so often fail. To have real insight sufficient to beat the index, there have to be a lot of people, with a lot of expertise, involved. MFS has team members all around the world, observing small localized markets and figuring out how various situations create opportunities and dangers.
- MFS focuses on risk management at every step of the management process. Each decision is evaluated in terms of how much value it brings to a portfolio relative to its risks. Basically, MFS is making sure you (and they) are always getting paid.
- MFS takes a long view. They want to craft a portfolio which will last you for the rest of your life, meeting your every investment goal along the way. Because you’re always dealing with the same company, there’s as much time as you’re willing to give.