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MFS plays aggressively in US rough and tumble

The MFS US growth equity fund is an Oeic that invests in US companies with good growth prospects. It is a clone of a fund run from Boston since 1996 by Irfan Ali and Peggy Adams. It will invest in around 107 stocks of all sizes. Sectors include financial services, technology, healthcare, leisure and business services.

The fund managers will rely on research by a team of analysts who are each responsible for two or three sectors. These analysts will examine documents such as financial statements and hold face-to-face meetings with company managers, their competitors and their customers. Stocks are selected on their individual merits and initial holdings include American International Group, Microsoft and Linear Technology.

Recent uncertainty in the US markets caused by recession, tumbling share prices and terrorist attacks is starting to give way to encouraging signs such as a rally in tech stocks but it is too early to predict a recovery in the latter half of 2002. The US growth equity fund will be managed quite aggressively compared with some general US equity funds, which makes it suitable for higher-risk investors.

According to Standard & Poor&#39s, the MFS US strategic growth fund is ranked 195th out of 214 funds based on £1,000 invested on a bid-to-bid basis with gross income reinvested over one year to January 1, 2002.

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