Bonding for stability

Fixed income investments can help provide stability to an investment portfolio. Investments such as bonds can offer lower risk compared to stocks, making them ideal for investors seeking capital preservation, diversification and alpha generation over the long term.

Why MFS for fixed income?

INVESTMENT OBJECTIVE
The MFS Global Opportunistic Fixed Income Trust aims to seek a total return in excess of the Bloomberg Global Aggregate Index (AUD Hedged), before fees, taxes and expenses, over a full market cycle, by primarily investing in global debt Instruments.

APIR: ETL6870AU
Inception: 19 November 2019
Benchmark: Bloomberg Global Aggregate Index (AUD Hedged)

INVESTMENT TEAM
Lead Portfolio Managers Pilar Gomez-Bravo, Robert Spector  Portfolio Managers Neeraj Arora, CFA, Ward Brown, CFA, Ph.D., Philipp Burgener, CFA, David Cole, CFA, Andy Li, CFA, Jay Mitchell, CFA, Michael Skatrud, CFA, Erik Weisman, Ph.D.  Institutional Portfolio Managers Owen David Murfin, CFA, Freida Tay

Ratings are only one factor to be taken into account when deciding whether to invest in a financial product. To view the relevant research information about the meaning of the rating and the rating scale, please refer to the respective research house disclaimers below. Research houses receive a fee from MFS for rating our trusts.

Why active?

We believe a flexible approach to active management can achieve higher levels of alpha. Global spread sectors can diverge, making asset allocation a potential source of alpha.

In our experience, returns can be enhanced by diversifying bond allocations across corporate, government, emerging market and securitised sectors. Each sector is populated by what we believe to be the strongest government and credit bonds chosen by our experienced global analysts. Therefore, active security selection can potentially enhance returns and minimise default risk.

Discover the active advantage in fixed income

Find out why Australian investors should consider an allocation to a global multi-sector fixed income strategy, and how MFS can provide a platform to help identify opportunities.

Risk Disclosure
Investments in debt instruments may decline in value as the result of, or perception of, declines in the credit quality of the issuer, borrower, counterparty, or other entity responsible for payment, underlying collateral, or changes in economic, political, issuer-specific, or other conditions. Certain types of debt instruments can be more sensitive to these factors and therefore more volatile. In addition, debt instruments entail interest rate risk (as interest rates rise, prices usually fall). Therefore, the portfolio's value may decline during rising rates. Portfolios that consist of debt instruments with longer durations are generally more sensitive to a rise in interest rates than those with shorter durations. At times, and particularly during periods of market turmoil, all or a large portion of segments of the market may not have an active trading market. As a result, it may be difficult to value these investments and it may not be possible to sell a particular investment or type of investment at any particular time or at an acceptable price. The price of an instrument trading at a negative interest rate responds to interest rate changes like other debt instruments; however, an instrument purchased at a negative interest rate is expected to produce a negative return if held to maturity. Derivatives: Investments in derivatives can be used to take both long and short positions, be highly volatile, involve leverage (which can magnify losses), and involve risks in addition to the risks of the underlying indicator(s) on which the derivative is based, such as counterparty and liquidity risk. High Yield: Investments in below investment grade quality debt instruments can be more volatile and have greater risk of default, or already be in default, than higher-quality debt instruments.

Lonsec disclosure
The rating issued (assigned as follows, MFS Global Opportunistic Fixed Income Trust – August 2024) are published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. ©2023 Lonsec. All rights reserved.

For further information regarding Lonsec’s Ratings methodology, please refer to our website at: https://www.lonsec.com.au/investment-product-ratings/.

Zenith disclosure
The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith") rating (assigned MFS Global Opportunistic Fixed Income Trust – March 2024) referred to in this piece is limited to “General Advice" (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual, including target markets of financial products, where applicable, and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant products. Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments.

Full details regarding Zenith's methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at: http://www.zenithpartners.com.au/RegulatoryGuidelines.

Genium Disclosure
The Genium rating (assigned 14 August 2024) presented in this document is issued by Genium Investment Partners Pty Ltd ABN 13 165 099 785, which is a Corporate Authorised Representative of Genium Advisory Services Pty Ltd ABN 94 304 403 582, AFSL 246580. The Rating is limited to “General Advice” (s766B Corporations Act 2001 (Cth)) and has been prepared without taking into account the objectives, financial situation or needs of any individual, including target markets of financial products, where applicable, and is subject to change at any time without notice. Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision in relation to this financial product(s). Genium receives a fee from the Fund Manager for researching and rating the product(s). Visit Geniumip.com.au for information regarding Genium’s Ratings methodology.

Equity Trustees Limited (“Equity Trustees") (ABN 46 004 031 298). AFSL 240975, is the Responsible Entity for the Trusts. Equity Trustees is a subsidiary of EQT Holdings Limited [ABN 22 607 797 615], a publicly listed company on the Australian Securities Exchange [ASX: EQT). MFS International Australia Pty Ltd (“MFS Australia") [ABN 68 607 579 537]. AFSL 485343 is the Investment Manager for the Trust and is regulated by the Australian Securities and Investments Commission.

This material has been prepared by MFS Australia to provide you with general information only. In preparing this material, MFS Australia did not take into account the investment objectives, financial situation and particular needs of any particular person. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. Neither MFS Australia, Equity Trustees nor any of their related parties, their employees or directors, provide any warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it. Investment involves risk. Past performance should not be taken as an indicator of future performance. You should consider the Product Disclosure Statement (“PDS"] before making a decision about whether to invest in this product. The PDS can be obtained by contacting MFS Australia or from www.mfs.com. The Trusts' Target Market Determination is available by visiting www.eqt.com.au/insto. A Target Market Determination is a document which describes who this financial product is likely to be appropriate for (i.e. the target market), and any conditions around how the product can be distributed to investors. It also describes the events or circumstances where Equity Trustees may need to review the Target Market Determination for this financial product. Any securities and/or sectors mentioned herein are for illustration purposes and should not be construed as a recommendation for investment. The information contained herein may not be copied, reproduced or redistributed without the express consent of MFS Australia. While the information is believed to be accurate, it may be subject to change without notice. Except in so far as any liability under any law cannot be excluded, MFS Australia does not accept liability for any inaccuracy or for the investment decisions or any other actions taken by any person on the basis of the material included. MFS Australia does not authorise direct distribution to retail investors.