MFS Investment Management has selected Jacobi Inc, an international investment technology provider, to support portfolio analysis and design for its Investment Solutions Group (ISG) – the team responsible for working with institutional and professional buyer clients globally on custom solutions, advisory services including asset allocation and risk analytics across multi-asset portfolios.
MFS manages more than USD660 billion in assets on behalf of individuals and institutions globally and traces its origins to 1924 and the creation of the first open-end mutual fund in the US.
MFS has seen increased demand from institutional and retail clients globally to provide a wider array of services including capital markets research, insights from equity and fixed income investors, and perspective on retirement trends and sustainable investing. The firm established the ISG team in 2017, to complement nearly 100 years of investment experience across equity and fixed income markets.
Jacobi will allow MFS’ ISG team to enrich its analytical capabilities and increase capacity in its investment solutions services. The platform will allow MFS to create a centralised infrastructure, replacing different systems and tools, leading to greater automation and scale. This should ultimately enhance MFS’ ability to support clients with more in-depth, customised analysis with a reduced time to market.
The technology enables MFS to flexibly integrate its own models, assumptions and data. This means the team will be able to conduct more thorough, highly customised analysis for each client. The system will be used to run a range of asset simulations and conduct “what if” scenario analysis, stress testing and modelling.
Ravi Venkataraman, global head of the Investment Solutions Group at MFS, says: “MFS believes in creating value responsibly over the long term for our clients. We achieve this by aligning with our clients’ broader goals and objectives, in addition to delivering alpha in the strategies we manage for them. Through Jacobi’s technology, we can add significant value for our clients in a consultative capacity, to ultimately improve investor outcomes and deepen long-standing client relationships.”
Tony Mackenzie, chief executive officer at Jacobi, says: “It’s extremely pleasing to work with a leading investment brand recognized globally for its long-term focus and longevity in the markets. This agreement with MFS will help its Investment Solutions Group scale its analytical processes and add value for clients. We believe MFS is taking an advanced position in the way it embraces a solutions mind set and has put this firmly into action.
“Unsurprisingly, there is strong demand for our technology owing to the increased need for cloud-based solutions and the limited mix of top-down multi asset investment systems available in the market. We already have a large international footprint and have a strong pipeline – with more new business wins to announce later in the year.”