MFS Rebounding From Scandal, Chief Exec Attests
November 29, 2004
MFS Investment Management's CEO Robert Manning told a gathering of investors in Toronto, where the firm's parent company, Sun Life, is headquartered, that the firm is rebounding from the mutual fund trading scandal, for which it paid more than $400 million in settlements.
After suffering an "enormous body blow," Manning said, MFS is restoring investors' faith by concentrating on performance, offering a more diversified lineup of funds beyond growth and enforcing best practices ahead of new regulations. Ceasing soft-dollar arrangements with fund distributors is costing MFS $35 million a year, but has enabled the firm to bring down trading costs from five cents a share to four cents, saving $75 million, he noted.