Geremia: MFS Avoids Active ETFs Because They Cannot Be Closed for Capacity
Carol Geremia · Carol Geremia - Creating Long-Term Value for (almost) 100 Years at MFS (Capital Allocators, EP. 287) · Dec 15, 2022 · at 34:39
Carol Geremia, President of MFS Investment Management, discusses product packaging and explains why MFS has resisted the asset management trend toward launching active ETFs.
0:00 / 0:17exact quote · 17.2s
720p mp4 · rendered on demand · StarZero watermark
“We have looked a lot at active ETFs as an example, but here's the problem with ETFs. You can't close the products. How do you manage capacity, and how do you protect performance as an active manager? That is the sole reason we have not offered an active ETF.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Carol Geremia
Geremia: ESG will cease to be an investment term within three years
“The most exciting to me is that ESG will go away. It will not be an investment term in three years, and it has nothing to do with it not being super important.”
Geremia: MFS aims for full-cycle outperformance rather than 1-to-5-year alpha
“We do not believe that we exist to generate alpha over short measurement periods like one, three, and five. Our goal is to outperform over a full market cycle”
Geremia: Obsessive Growth at Any Cost and Passive Capital Have Hit Limits
“I think what we're seeing today is that obsessive growth at any cost is over. I think we're seeing the limitations of passive capital. I think we're seeing the limitations of short-term alpha. I think we're going to start to desperately realize how important l…”
Geremia: Skeptical that investment personalization actually serves client needs
“I think there's a lot of talk about personalization, and I'm a little skeptical on that, because again, I'm not sure that's actually, it sounds good, and it sounds like it's about the customer. I'm not sure that's actually What the customer needs. I think it's…”