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MFS Profile
With a rich history in the DC record keeping business,
MFS <view complete profile> has made a smooth and
relatively easy transition into its current status as an
IO (Investment Only) provider.
Buoyed by good performance in 2009 and deep
relationships with thousands of DC advisors, the status
of MFS as a leading DCIO provider is growing.
Once a top record keeper in the small unbundled TPA
business and the mid bundled market;
MFS, along with
Putnam, American Funds, and Fidelity, were the leaders
among mutual fund companies servicing advisors that were
migrating up market.
Though they had developed a robust business, they
sold it to The Hartford at the end of 2007 realizing
that to compete effectively, they had to grow or go.
Now working as an IO provider, their resources
are focused and they are no longer competitors to record
keepers whose platforms they depend upon for sales.
MFS’s experience as a record keeper gives them an
advantage in understanding the business, as well as the
relationships developed with DC advisors over many
years. With
6 external specialists and
3 internals, they work with
the 75 retail
wholesalers to find and service business.
Most of the MFS DC staff are homegrown, unlike
many other IO’s, and have more than 10 years tenure at
the firm.
Known for inventing the
mutual fund,
Massachusetts
Investment Trust (a large
cap core/blend fund),
MFS' history in managing money is well regarded. Over
the years MFS has been known as a fixed-income shop and
then as a domestic equity shop.
More recently however, their business has
broadened.
International funds
now account for
one-third of their inflows.
2009 was a record sales year with 70% coming from
equities, as opposed to 30% for the industry.
Of the $185 billion under management,
20% of sales come
through the DC market.
In addition to providing quality
investment options, MFS has renewed their efforts to
support advisors by providing value-added resources to
help advisors manage and grow their business.
Through relationships
with industry
experts, MFS offers tools and resources to help advisors
focus on their self-described challenges such as fee
benchmarking, fee disclosure, and managing
relationships. MFS DC
wholesalers have been trained to assist advisors to use
these tools to scale their business.
With a research driven philosophy, offices all over the
world, a deep understanding of the DC market, and long
tenured employees, MFS’s renewed focus as a DCIO
provider is already making a big impact on the industry
and at the firm.
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