If you have been investing for awhile, you no doubt have started to wonder about investment managers. People have lots of different opinions of actively managed funds. Some investors get sky-high returns based on awesome decisions by their managers. But others fail to beat the market or even lose money if their managers fail to make good calls. So is an active investment manager right for you? Here’s what I look for.
I like investment managers like the ones at MFS. This is a company that consistently beats the market, sometimes by many points. This, at least, should be the basic qualification for a good investment manager. Without the ability to beat general index funds, what good are they? But if that were easy, more investment managers would succeed at that goal. MFS bucks the trend and beats the market again and again, using 3 simple pillars of success.
1. MFS has a Global Perspective. It’s really easy for American investment managers to have a US-Centric perspective. But there are many global realities that feed into the US economy. If a manager isn’t conscious of these, or views them through a Western lens, he or she won’t be able to anticipate the happenings that could result in high yields for you. MFS analysts live all over the world, so they intimately know about events and cultures that will help you win big in the marketplace.
2. Risk Management. MFS has enough experience to know when to buy and when to refrain. They only act when compensation is well nigh guaranteed.
3. Long Term Thinking. This is the other side of caution and experience. There’s a lot of industry noise and pressure to act in one way or another. This can get under lesser managers’ skins, forcing their hands and locking them into decisions that won’t ultimately benefit their clients very much. MFS knows that sometimes it pays to wait, enabling them to rise above the industry fray and take advantage of long term growth, not bow to short term fears.