European investors will soon be able to invest in MFS International global funds and US fixed income...
European investors will soon be able to invest in MFS International global funds and US fixed income funds, following the decision to merge its Cayman range with its UK Oeic and Luxembourg Sicav.
The Cayman Island funds and MFS UK Oeic will be merged into its Luxembourg Sicav and will be called the MFS Meridian Funds and will be established in September 2005.
The move will create a single fund family designed to service all MFS markets on a pan-European and global level. The expanded MFS Meridian Funds will have 28 sub-funds with some $6.5bn in assets.
For European investors the main benefit will be the ability to invest in the MFS global fund range and US fixed income products. In the global range this includes Asian, balanced, growth, international research, and technology offerings. In the US fixed income range this includes an inflation adjusted bond and a strategic income fund.
Funds that are clones of each other will be merged into a single portfolio. This includes the strategic growth, emerging market debt, European equity, US emerging growth, global equity, US large cap value and US research fund. These will continue to be run on the same basis by the same managers.
Most of the sub-funds will offer A, B, C and I share classes and many will be sterling, euro and dollar denominated.
The Sicav will be a recognised fund in the UK – the sterling share classes being intended to qualify for UK distributor status.
At the point of merger, existing shareholders of the MFS Funds (UK) and MFS Funds in the Caymans will become shareholders in the corresponding fund of the Luxembourg Sicav.
Peter Laird, president of MFS International, said: "We believe the reorganisation of our fund families will give important long-term benefits to our shareholders, offering investors a greater range of investment choices and purchasing options. In particular, it will considerably enhance our offering in the UK market, enabling us to reach critical mass without recourse to new fund launches or acquisitions. The unified fund family should provide greater scope for diversifying investments and realising economies of scale and the larger asset base can be administered in a more efficient manner."
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