MFS Investment Management is a premier global money management firm with investment offices in Boston, Hong Kong, London, Mexico City, São Paulo, Singapore, Sydney, Tokyo and Toronto. The firm’s history dates back to March 21, 1924, and the establishment of the first US “open-end” mutual fund. MFS manages $322.8 billion in assets on behalf of individual and institutional investors worldwide, as of December 31, 2012. Please visit mfs.com for more information.
The global financial crisis has led to unprecedented valuation displacements across asset classes, particularly in regard to stocks versus bonds, as well as across markets, especially within equities. Current allocations suggest that investors are investing for a tail event with a low probability, one that assumes a very disorderly world unfolding.
We present analyses based on historical data that suggest investors would do well to reconfi gure their asset allocation to shift assets from fi xed income into equities and, within equities, to increase allocations to non-US developed and emerging market...