MFS Investment Management
Encyclopedia
MFS Investment Management (MFS) is an American-based global asset manager, formerly known as Massachusetts Financial Services. It is owned by Sun Life Financial
of Canada, with subsidiary headquarters in Boston
, Massachusetts
and offices worldwide. MFS was founded in 1924 and is one of the oldest asset management companies in the world. It is credited with pioneering the mutual fund
. As of 2011, it had 60 funds with $238.9 billion in assets under management
.
.
MFS is an asset manager for institutional clients, headquartered in Boston, Massachusetts. It employs more than 1,650 employees worldwide including offices in London
, Tokyo
, Singapore
, Mexico City
, and Sydney
. MFS' MIT fund is the oldest continuously operating fund in the U.S. and the first mutual fund of its kind. MFS has over 60 funds including the Meridian Funds, which are available to non-U.S. investors.
MFS offers investment strategies across major asset classes. Regional investment analysts are grouped into eight global sector teams that include fundamental equity analysts, fixed income analysts, quantitative analysts, and portfolio managers. MFS employs over 150 investment professionals, with 1,650 total employees world-wide.
MFS contributes to charitable giving programs that support The Jimmy Fund, Jumpstart
, and City Year
. MFS has sponsored the Pan-Massachusetts Challenge since 1999.
The company was founded in 1924 by L. Sherman Adams, Charles H. Learoyd and Ashton L. Carr. The company's oldest fund is the Massachusetts Investors Trust (MIT), a mutual fund created with $50,000 at the company's inception and reported to be "the world's first open-end investment fund" and "a business breakthrough that changed our lives in a profound way".
The company used "brokerage channels" to market its shares to the public and later expanded to $14 million in assets over the next five years. During the stock market crash of 1929 the fund survived an 83% loss and went on to create a second fund in 1934.
In 1998, MFS Chairman and Chief Executive, A. Keith Brodkin died, causing a major shift in top management. MFS's assets under management grew from $55 billion to $90 billion between 1997 and 1998, and was reported to be the fastest growing company amongst the 20-largest that funds sold through broker
s.
In July 2002, MFS had its largest work force reduction, when it laid off four percent of its employees and reduced retail sales positions and duplication to improve efficiency.
In 2003 MFS and five other mutual fund companies in the Boston area were investigated by the Massachusetts
and New Hampshire
regulators. That same year, the Securities and Exchange Commission alleged that MFS made "false and misleading" statements in its fund prospectus
about its policy on market trading and market timing
.
In 2004, MFS paid $350 million to settle state and federal fraud charges and two of its top executives, John W. Ballen and Kevin R. Parke, left MFS and were barred from the industry temporarily though neither admitted to any wrong doing. MFS appointed Robert Pozen
as non-executive chairman from 2004 to 2010. MFS then implemented a set of company reforms to inform investors about fees, keep fund boards independent and create deterrents to market timing. These changes were intended to addressed the concerns of regulators and lawmakers and were praised by fund industry analysts and consumer advocates. These reforms ended the "soft-dollar" arrangements which allowed the swapping of brokerage commissions for market research and data.
In 2006, MFS' corporate parent, Sun Life Financial Inc. considered selling the company but failed to find the right deal or price.
In 2007, MFS created a hedge fund subsidiary called Four Pillars Capital, to create seed and expansion funds for the firms newly established alternative investment operations. Thomas A. Knott, was appointed president and Eric Lass became its chief investment officer
.
In 2008, MFS eliminated five percent of its 1,800 person workforce, due to a 20% decline in its assets under management over the prior year. However, the company reports that its assets under management have grown by more than 66% between 2008 and 2011.
In 2011, MFS won the Lipper Fund Award for Best Overall Large Company and ranks #1 out of 46 fund companies.
Sun Life Financial
Sun Life Financial Inc. is an international financial services company known primarily as a life insurance company. Based in Toronto, Canada, Sun Life and its partners provide insurance, retirement and investment solutions for individuals and businesses around the world including Canada, the United...
of Canada, with subsidiary headquarters in Boston
Boston
Boston is the capital of and largest city in Massachusetts, and is one of the oldest cities in the United States. The largest city in New England, Boston is regarded as the unofficial "Capital of New England" for its economic and cultural impact on the entire New England region. The city proper had...
, Massachusetts
Massachusetts
The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...
and offices worldwide. MFS was founded in 1924 and is one of the oldest asset management companies in the world. It is credited with pioneering the mutual fund
Mutual fund
A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors to buy stocks, bonds, short-term money market instruments, and/or other securities.- Overview :...
. As of 2011, it had 60 funds with $238.9 billion in assets under management
Assets under management
Assets under management is a financial term used denote the market value of funds being managed by a financial instutition on behalf of its clients, investors, depositors, etc. This metric is a sign of size and success against competition...
.
Description
It is wholly owned by Sun Life of Canada and in 2011 had USD $208.2 billion in assets under managementAssets under management
Assets under management is a financial term used denote the market value of funds being managed by a financial instutition on behalf of its clients, investors, depositors, etc. This metric is a sign of size and success against competition...
.
MFS is an asset manager for institutional clients, headquartered in Boston, Massachusetts. It employs more than 1,650 employees worldwide including offices in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, Tokyo
Tokyo
, ; officially , is one of the 47 prefectures of Japan. Tokyo is the capital of Japan, the center of the Greater Tokyo Area, and the largest metropolitan area of Japan. It is the seat of the Japanese government and the Imperial Palace, and the home of the Japanese Imperial Family...
, Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
, Mexico City
Mexico City
Mexico City is the Federal District , capital of Mexico and seat of the federal powers of the Mexican Union. It is a federal entity within Mexico which is not part of any one of the 31 Mexican states but belongs to the federation as a whole...
, and Sydney
Sydney
Sydney is the most populous city in Australia and the state capital of New South Wales. Sydney is located on Australia's south-east coast of the Tasman Sea. As of June 2010, the greater metropolitan area had an approximate population of 4.6 million people...
. MFS' MIT fund is the oldest continuously operating fund in the U.S. and the first mutual fund of its kind. MFS has over 60 funds including the Meridian Funds, which are available to non-U.S. investors.
MFS offers investment strategies across major asset classes. Regional investment analysts are grouped into eight global sector teams that include fundamental equity analysts, fixed income analysts, quantitative analysts, and portfolio managers. MFS employs over 150 investment professionals, with 1,650 total employees world-wide.
MFS contributes to charitable giving programs that support The Jimmy Fund, Jumpstart
Jumpstart for Young Children
mission is to work toward the day every child in America enters school prepared to succeedEvery child deserves the chance to succeed, yet studies show that children from low-income neighborhoods are at a greater risk of school failure. Jumpstart recruits and trains college students and community...
, and City Year
City Year
City Year is an education-focused nonprofit organization that partners with public schools to provide full-time targeted intervention keeping students in school and on track to graduate...
. MFS has sponsored the Pan-Massachusetts Challenge since 1999.
History
The company was founded in 1924 by L. Sherman Adams, Charles H. Learoyd and Ashton L. Carr. The company's oldest fund is the Massachusetts Investors Trust (MIT), a mutual fund created with $50,000 at the company's inception and reported to be "the world's first open-end investment fund" and "a business breakthrough that changed our lives in a profound way".
The company used "brokerage channels" to market its shares to the public and later expanded to $14 million in assets over the next five years. During the stock market crash of 1929 the fund survived an 83% loss and went on to create a second fund in 1934.
In 1998, MFS Chairman and Chief Executive, A. Keith Brodkin died, causing a major shift in top management. MFS's assets under management grew from $55 billion to $90 billion between 1997 and 1998, and was reported to be the fastest growing company amongst the 20-largest that funds sold through broker
Broker
A broker is a party that arranges transactions between a buyer and a seller, and gets a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal...
s.
In July 2002, MFS had its largest work force reduction, when it laid off four percent of its employees and reduced retail sales positions and duplication to improve efficiency.
In 2003 MFS and five other mutual fund companies in the Boston area were investigated by the Massachusetts
Massachusetts
The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...
and New Hampshire
New Hampshire
New Hampshire is a state in the New England region of the northeastern United States of America. The state was named after the southern English county of Hampshire. It is bordered by Massachusetts to the south, Vermont to the west, Maine and the Atlantic Ocean to the east, and the Canadian...
regulators. That same year, the Securities and Exchange Commission alleged that MFS made "false and misleading" statements in its fund prospectus
Prospectus
Prospectus may refer to:* Prospectus * Prospectus * Prospectus * Parkland College's newspaper...
about its policy on market trading and market timing
Market timing
Market timing is the strategy of making buy or sell decisions of financial assets by attempting to predict future market price movements. The prediction may be based on an outlook of market or economic conditions resulting from technical or fundamental analysis...
.
In 2004, MFS paid $350 million to settle state and federal fraud charges and two of its top executives, John W. Ballen and Kevin R. Parke, left MFS and were barred from the industry temporarily though neither admitted to any wrong doing. MFS appointed Robert Pozen
Robert Pozen
Robert C. Pozen is an American financial executive with a strong interest in public policy. He is the former chairman of MFS Investment Management, the oldest mutual fund company in the United States...
as non-executive chairman from 2004 to 2010. MFS then implemented a set of company reforms to inform investors about fees, keep fund boards independent and create deterrents to market timing. These changes were intended to addressed the concerns of regulators and lawmakers and were praised by fund industry analysts and consumer advocates. These reforms ended the "soft-dollar" arrangements which allowed the swapping of brokerage commissions for market research and data.
In 2006, MFS' corporate parent, Sun Life Financial Inc. considered selling the company but failed to find the right deal or price.
In 2007, MFS created a hedge fund subsidiary called Four Pillars Capital, to create seed and expansion funds for the firms newly established alternative investment operations. Thomas A. Knott, was appointed president and Eric Lass became its chief investment officer
Chief investment officer
The chief investment officer is a job title for the board level head of investments within an organization. The CIO's purpose is to understand, manage, and monitor their organization's portfolio of assets, devise strategies for growth, act as the liaison with investors, and recognize and avoid...
.
In 2008, MFS eliminated five percent of its 1,800 person workforce, due to a 20% decline in its assets under management over the prior year. However, the company reports that its assets under management have grown by more than 66% between 2008 and 2011.
In 2011, MFS won the Lipper Fund Award for Best Overall Large Company and ranks #1 out of 46 fund companies.