MFS Annual Sustainability Report
Fixed Income Insight
The Big Mac on Fixed Income Allocation
Fixed Income Insight
Generational Opportunity in Fixed Income
Equity Insights
The Other Side of Market Concentration Peaks
MFS Long-Term Capital Market Expectations – Canada Edition
Our mid-year Long-Term Capital Market Expectations that represent a forward look of risk and return across asset classes and regions in Canadian Dollar terms.
The Stars May Be Aligning for European Credit
With yields having corrected much higher over the past couple of years, global fixed income is once again a relevant asset class. In this paper we highlight the relative attractiveness of European Investment-Grade Credit.
Lessons Learned from 100 Years of Investing
With 100 years of investing experience, MFS has the unique ability to provide insight into the lessons we have learned that can help our clients meet their investment objectives.
Latest Insights
Get the latest on global markets and economies as well as what's top of mind for our thought leaders.
Growth, Inflation Trends Persist
A review of the week’s top global economic and capital markets news.
Macro Talking Points - Week of 26 August 2024
Global fixed income market analysis through a macroeconomic lens.
Fed Signals Time Has Come for Rate Cuts
A review of the week’s top global economic and capital markets news.
Starting Points Matter: Why International Equities Might Be Worth a Second Look
Why consider an allocation to both US and non-US companies? We believe that the starting point for market today is vastly different from that of the past decade. And, with rising rates, higher inflation, and shrinking liquidity, investors who seek the best companies across the global markets could help maximize portfolio returns.
Our Progress Towards Our Net Zero Commitments
An executive summary of our Net Zero Progress Report.
Equities Rise as US Soft Landing Hopes Rekindled
A review of the week’s top global economic and capital markets news.
2024 DC Retirement at a Glance
Stay up to date on capital markets and the retirement industry with our quick insights and information.
Fresh Data Cool Recession Fears
A review of the week’s top global economic and capital markets news.
Uncertainty is Non-Linear
Rob Almeida suggests that while recent market turmoil may not last, a backdrop of higher costs and lower growth could make for a more challenging operating environment ahead.
AI and Analyst Sentiment
This paper discusses how the quantitative equity research team recently researched and implemented an enhancement to the research analyst sentiment score utilized within the MFS Blended Research portfolios. The new natural language processing (NLP) algorithm is materially better at contextualizing text within a document and as a result quantifying its sentiment. By leveraging sophisticated tools such as FinBERT to analyze MFS’ proprietary datasets we believe we can offer a differentiated alpha signal.
Market Pulse
Leveraging the expertise from the MFS Market Insights team to provide timely perspectives on economic and market dynamics that are top of mind for clients.
Rates Dive Amid US Slowdown Risks
A review of the week’s top global economic and capital markets news.
MFS Digest: August 2024
The MFS Digest summarizes key market themes and topics affecting investors and features related thought leadership from across MFS.
MFS Long-Term Capital Market Expectations - Canada Edition
Canada regional edition of our Long-Term Captial Market Expectations. These proprietary expectations represent a forward look of risk and return across asset classes and regions in Canadian Dollar terms.
MFS® Active Fixed Income: Pursuing Consistent Through-Cycle Alpha | Transcript
MFS® Emerging Markets Debt Strategy - Quarterly Portfolio Update | Transcript
US Data Show Solid Growth, Moderate Inflation
A review of the week’s top global economic and capital markets news.
The Stars May Be Aligning for EUR Credit
With yields having corrected much higher over the past couple of years, global fixed income is once again a relevant asset class. In this paper we highlight the attractiveness of European IG Credit.
MFS Long-Term Capital Market Expectations: July 2024
The July 2024 edition of MFS' Long-Term Capital Market Expectations includes proprietary expectations that look at return and risk across a variety of asset classes and regions. This version details our view of current economic and capital market conditions.
Targeting Retirement Success: Understanding Target Date Funds and Member Preferences
As part of the Global Retirement Survey each year, we seek to better understand member perceptions of TDFs with the goal of trying to gauge where there are misperceptions or gaps that we can address. Discover how TDFs are evolving and the role they play in retirement planning.
Japan’s Revitalization In The Reiwa Era
This paper discusses how shifting Japanese monetary policy reflects growing confidence in the economy and how yen appreciation may face structural hurdles. While the weak yen has been a huge benefit for exporters, corporate Japan continues to embrace reforms to improve governance and unlock value from balance sheets, all of which benefits shareholders.
The Other Side of Market Concentration Peaks
This paper covers the growing interest surrounding global pockets of market concentration. It examines the extreme concentration in the market and explores topics such as the historical view of market concentration and what follows periods of extreme concentration.
Opportunities in Global Growth
This paper discusses our global approach to stock picking within a Growth equity framework, new opportunities and trends in the investment landscape, and the importance of investing through the cycle in companies with durable earnings.
Investors are Seeking the Right Answers to the Wrong Questions
Rob Almeida suggests that investors should be more concerned about fundamentals than potential rate cuts.
Small-Cap and Value Stocks Outshine Large-Cap Growth Ones
A review of the week’s top global economic and capital markets news.
MFS® International Equity Strategy - Quarterly Portfolio Update | Transcript
Monthly Equity Market Topics
An examination of market trends and dynamics across the global equity markets.
The Big Mac1 on Fixed Income Allocation
In this edition of The Big Mac, we discuss the role of fixed income in a positively correlated world.
US Inflation Continues to Cool
A review of the week’s top global economic and capital markets news.
MFS® Large Cap Value Strategy - Quarterly Portfolio Update | Transcript
MFS® Growth Strategy - Quarterly Portfolio Update | Transcript
Fed Chief Sees Return of Cooling Inflation Trend
A review of the week’s top global economic and capital markets news.
Opportunities in US Growth
This paper discusses our approach to stock picking within a Growth equity framework, new opportunities and trends in the investment landscape, and the importance of investing through the cycle in companies with durable earnings.
DC Pulse // 2Q 2024 in Review
Research, regulations, returns and trends in DC
US Inflation and Consumer Spending Cool
A review of the week’s top global economic and capital markets news.
State of Play: Effective Stewardship and Reaching Net Zero
This summary explains recent developments in the transition to net zero, how investors can constructively engage with companies, stewardship megatrends and questions the industry should be asking companies but aren’t (yet).
MFS Global Growth Equity Strategy: Investment Approach and Opportunities | Transcript
US Budget Deficit Swells
A review of the week’s top global economic and capital markets news.
Markets Look Past Cautious Fed
A review of the week’s top global economic and capital markets news.
2023 MFS Annual Sustainability Report
Annual report offering a comprehensive review of our approach to sustainability, material factor integration, proxy voting and engagement activities at MFS for the 2023 calendar year.
The Impact of Higher for Longer on High Yield
While the valuation landscape for high yield has become more challenging, we believe there are still plenty of attractive opportunities that can be identified through a thorough security selection process.
Boomer, Consumer!
Those who have, spend. Those who don’t, borrow… then spend.
Rethinking the Role of Fixed Income Along the Retirement Savings Journey (Canada)
In this paper we discuss the role of fixed income in target date funds, emphasizing the importance of aligning risk profiles with evolving member objectives throughout the retirement savings journey.
Strong US Employment Data Derail Hopes for Quick Rate Cut
A review of the week’s top global economic and capital markets news.
Global Infrastructure: Putting Money to Work in Public Equities
This summary explores why infrastructure should be on every asset owner's radar, shares insights on long-term investment opportunities and delves into exposure via public versus private markets.
MFS Stewardship Report: First Quarter 2024
This quarterly report provides an update on our sustainability efforts, in addition to proxy voting and company engagement highlights from the three-month period ended 31 March 2024.
Lessons Learned from 100 Years of Investing
With 100 years of investing experience, MFS has the unique ability to provide insight into the lessons we have learned that can help our clients meet their investment objectives.
Markets Relieved As US Inflation Meets Expectations
A review of the week’s top global economic and capital markets news.
Generational Opportunity in Fixed Income
Discover how today's high yields and evolving market conditions create a compelling case for integrating global bonds into your portfolio.
Fed Officials Advise Patience
A review of the week’s top global economic and capital markets news.
The Evolution of the Consumer Staples Sector
In the consumer staples space, clear profit visibility has given way to tech-driven disruption. As a result, separating the winners from the losers requires deep research and an appreciation of nuance.
US Inflation Takes Small Step in Right Direction
A review of the week’s top global economic and capital markets news.
Stewardship in Practice: ExxonMobil Case Study
This MFS Case Study illustrates our collaborative, security-specific approach to proxy voting.
Fixed Income Under the Spotlight: Exploring Tail Risks: What-If Scenarios in the Year of the Dragon
Co-CIO of Fixed Income Pilar Gomez-Bravo, shares her thoughts on three key tail risks and how they could impact the global fixed income markets and our portfolio positioning.
Sustainability in Action: Linde
This case study highlights the importance of adopting a system-wide perspective on corporate emissions data accounting and reporting while pursuing workable solutions in the journey to net zero.
Should Emerging Market Debt Investors Worry About Higher-For-Longer?
Explores the implications that higher interest rates may have for sovereign emerging market debt (EMD) investors.
Markets Grind Higher, Approach Record Levels
A review of the week’s top global economic and capital markets news.
How Has Low Volatility Performed in Down Markets?
We explore how minimum- and low-volatility equities have behaved over the last 20 years, given the relatively strong equity markets, and how those lower-risk stocks have performed during past market drawdowns.
Fed Rate Hike Fears Vanish
A review of the week’s top global economic and capital markets news.
2023 MFS DC Plan Sponsor Survey
Explore the results of MFS' 2023 MFS DC Plan Sponsor Survey! This study gathered sponsor perspectives on retirement confidence, managing investment lineups in uncertain markets, retirement income and their views on an array of legislative issues and litigation concerns.
2023 MFS Strategic Climate Action Plan
In line with the Task Force on Climate-Related Financial Disclosures (TCFD), this report outlines MFS’ view on climate change and our related actions in both our investment process and business operations.
US Inflation Stays Stubbornly High
A review of the week’s top global economic and capital markets news.
MFS EMD Team Views on the Situation in the Middle East
Provides commentary on the current geopolitical environment in the Middle East and how the Team is positioning its portfolios.
Inflation Surprise? No, Not Really
The market is currently correcting mistaken assumptions that were based on a market cycle driven by artificially low interest rates. As market dynamics shift, the source of a company's growth will also shift.
China’s Q1 GDP strong, but other indicators point to weakness
A review of the week’s top global economic and capital markets news.
Is It Time To Shift From Cash to Bonds?
While shifting investor allocations from bonds to cash appeared to be the right move during the rate hiking episode, impending rate cuts from the Bank of Canada may indicate it is time to re-allocate back to fixed income.
A Different Paradigm
As the world shifts away from one of artificially suppressed interest rates and cheap manufacturing, investors will need to carefully consider how companies are positioned to navigate the new higher-cost paradigm.
Factor Returns Around the Fed Pivot
Thought leadership paper around how factor returns behaved in periods of past rate cuts.
Amid Sticky Inflation, Fewer, Later Rate Cuts Expected
A review of the week’s top global economic and capital markets news.
Natural Capital: Practical Ways to Assess Financial Materiality for Companies
This summary explores the impact of biodiversity on companies and provides practical ways for investors to assess the risks and opportunities from it.
You Can’t Hurry Cuts. You Just Have to Wait.
A review of the week’s top global economic and capital markets news.
GLP-1s Weigh on the Market
We provide a high-level overview of recent developments in the weight loss drug category and explore how they may impact other industries. These highly effective drugs were born out of research to treat diabetes but have additional benefits.
US Economy Finished 2023 Strong
A review of the week’s top global economic and capital markets news.
The Benefits of Low Volatility as a Strategic Allocation
Given economic uncertainty and market volatility, we believe an appropriately sized strategic allocation to a low-volatility equity strategy may allow investors to lessen downside risk and realize long-term competitive returns without having to experience extreme swings.
Fed Turns Dovish, BOJ Hikes
A review of the week’s top global economic and capital markets news.
Back to Reality: The Important Role of Active Management in Defined Contribution Plans
In this paper, we address and challenge three common misperceptions that have led to the increased prevalence of passive investments in defined contribution plans.
AI Tipping Point: A Deep Dive Into Semiconductors
Which semiconductor companies will be long-term winners from the AI boom? What risks do supply chains and energy usage bring to the sector? This episode of the All Angles podcast features Genevieve Gilroy, sector lead for semiconductors and consumer staples at MFS. Genevieve describes the challenges and opportunities in the semiconductor space and explains why valuations matter when navigating the AI hype cycle.
Exploring Opportunities for Global Small- and Mid-Cap Stocks in the Next Cycle
Taxable Municipal Bonds May Hold the Key to Better LDI Portfolios
With deeper representation across the long duration spectrum, lower historical default rates and higher yields relative to comparable quality corporate bonds, taxable municipal bonds can complement and potentially enhance LDI portfolios.
Inflation’s Last Mile Gets Bumpier
A review of the week’s top global economic and capital markets news.
Simplicity and Complexity: Striking a Balance in Sustainable Investing
Sustainable investing is simple in theory but confusing in practice. We reflect on challenges posed by the current approach and how embracing complexity can help investors overcome the challenges.
European High Yield: High Yield, High Expectations
Outlines why we believe European High Yield is an asset class that deserves to be on investors’ radar given its attractive valuation characteristics, fundamental strength, favorable technicals and long-term performance record.
The Time is Right
We examine the performance of low volatility stocks through the lens of market cycles and offer our perspective on the outlook for these stocks, which we believe are well positioned as we move into the next phases of the current cycle.
How ESG fits into MFS LifePlan Funds
Intensifying marketplace interest in environmental, social and governance (ESG) investing has brought a new dimension to the way plan members think about retirement funds. In this paper we discuss the different approaches to incorporating ESG into target date funds, the power of engagement and key takeaways for plan sponsors.
Powell Looks Past Inflation Uptick
A review of the week’s top global economic and capital markets news.
Why We Support the Value Underdog
An examination of why there's an opportunity for value-focused investors in the current environment.
Markets Mark Time Ahead of Big Data Week
A review of the week’s top global economic and capital markets news.
Sustainability in Action: Schneider Electric
This case study demonstrates our bottom-up analysis of Schneider Electric and how we identify investment opportunities in a decarbonizing world.
Tech Earnings Rekindle AI Enthusiasm
A review of the week’s top global economic and capital markets news.
Indexing Dilutes Capitalism
Rob Almeida examines how indexation has amplified the disconnect between valuations and fundamentals.
Inflation Uptick Dampens US Rate Cut Outlook
A review of the week’s top global economic and capital markets news.
Declining Interest Rates Have Historically Signaled Positive Relative Performance for US Low Volatility
Examines how low-volatility stocks may perform considering the market consensus rate assumptions, which currently anticipate rates cuts, and a declining rate environment for 2024.
China Intervenes to Support Stocks
A review of the week’s top global economic and capital markets news.
Fixed Income Under the Spotlight: Three Key Themes for 2024
Co-CIO of Fixed Income Pilar Gomez-Bravo, addresses many of the pressing issues facing today’s bond investors including the fight between growth and inflation, building portfolios for an uncertain world and fragility.
Declining Interest Rates Have Historically Signaled Positive Relative Performance for Global Low Volatility
Examines how low-volatility stocks may perform considering the market consensus rate assumptions, which currently anticipate rates cuts, and a declining rate environment for 2024.
Rate Cut Hopes Dim Amid Strong US Data
A review of the week’s top global economic and capital markets news.
US Economic Growth Beats Expectations
A review of the week’s top global economic and capital markets news.
Great Expectations
Financial markets appear optimistic to start the year, while investors currently believe inflation will slow, rates fall, and profits rise. Rob Almeida explains why those beliefs may be contradictory.
Market Moderates Rate-Cut Outlook
A review of the week’s top global economic and capital markets news.
Expanding Horizons: The Case for Global Bonds in Liability-Driven Investing
Global investment-grade bonds can potentially complement traditional liability-driven investment (LDI) strategies, bringing the potential for attractive risk-adjusted returns while still maintaining critical liability hedging characteristics.
Tame US PPI Offsets Hot CPI
A review of the week’s top global economic and capital markets news.
The Big Mac on Fixed Income Allocation: FIFOMO
In this edition of the Big Mac, we discuss how the Fixed Income Fear Of Missing Out (FIFOMO) is going to be the new fear that fixed income investors will soon be facing.
Rate Cut Expectations Trimmed
A review of the week’s top global economic and capital markets news.
2024 6 Key Themes
Forward-looking snapshot of what we believe will be relevant and may influence the markets and economy.
MFS Proxy Voting Policies and Procedures
An outline of our voting guidelines and procedures on a wide range of topics, including how we assesses and vote on environmental, social and governance issues.
Markets Extend Gains Ahead of Holidays
A review of the week’s top global economic and capital markets news.
Wrap Up: All Angles Season 2 Insights and Reflections
A summary of all key themes and topics covered from All Angles Season 2 podcast.
Powell Ponders Pivot
A review of the week’s top global economic and capital markets news.
International Large Cap Value: The Forgotten Asset Class
Investors seeking to capture the benefits of diversification may be well served by an allocation to international large cap value given its sector composition and the low correlation of the asset class to US equity markets.
Solid US Jobs Report Cools Rate Cut Speculation
A review of the week’s top global economic and capital markets news.
How the Capital Cycle Could Impact 2024
How might investors think about the year ahead? The capital cycle fuels the engine of progress, but it can also create excesses and inefficiencies. Rob examines why that’s relevant today and going forward.
A November to Remember!
A review of the week’s top global economic and capital markets news.
Stocks Extend Nearly Month-Long Rally
A review of the week’s top global economic and capital markets news.
The End of Declining Capital Intensity
Rob Almeida examines how a shift from supply chain efficiency to resiliency will likely affect a company's return on capital. What type of companies are positioned to navigate this paradigm shift, and which companies are not?
Markets Price a Quicker Fed Pivot
A review of the week’s top global economic and capital markets news.
Fixed Income Investing in US Recessions
We examine how, during economic downturns, fixed income has offered diversification benefits and reduced the volatility of portfolios that include risk assets such as equities.
Understanding the Drivers of Retirement Confidence
Explore the results of MFS' 2023 MFS Global Retirement Survey! In this retirement insight we share the responses from Canadian members on market event impacts, retirement confidence and the power of quality advice.
Capital Markets View
The MFS Capital Markets View entering the fourth quarter of 2023 aggregates insights on the equity and fixed income asset classes across regions and countries.
Emerging Market Debt: Navigating ESG Risk and Uncertainty
Successful investors in emerging market debt must contend with complexity and uncertainty on several levels. We believe our integrated approach, plus our ability to identify and model material risk factors, enables us to better manage risk while focusing on capitalizing on investment opportunities.
The Far-Flung Past is Prologue
The negative stock/bond correlation from 1998 until 2019 was the anomaly, not the positive relationship that began in 2022. While correlations of asset classes normalize, the importance of security selection and manager allocation will matter immensely.
Thriving Amid Change | Transcript
Either Stocks or Bonds are Wrong
Real yields in the US are either too high or equity valuations are well above fair value. Investors who can understand which enterprises possess real value and those that do not, will find themselves in an enviable position compared with the broader market.
The Big Mac on Cash Allocation: Time to Retire the CD Player*
With the federal funds rate at or near peak levels, we believe that cash is likely to start underperforming credit in the period ahead. We favor deploying some credit risk as an attractive alternative to a cash allocation.
Road to Better Outcomes: Survey Highlights | Transcript
A Constructivist Approach to Sustainability
This paper provides an overview of constructivism stewardship and how it works in practice.
2023 MFS Asset Allocation Study | US Edition
Views on an Increasingly Complex World
Authentic DEI: Making it Personalized, Actionable and Transparent
How can leaders effectively integrate DEI into their organizations? In Episode 6 of the All Angles podcast, MFS’ Chief Diversity Equity & Inclusion Officer Michelle Thompson-Dolberry shares her thoughts on meeting people where they are, building the process rather than checking the box and practical ways to apply DEI in the workplace.
What’s Old is New Again: Reopening Your Defined Benefit Plan Could Help Solve the Retirement Challenge
We propose that now might be the time for plan sponsors who have closed or frozen their DB plans to give these plans a fresh look.
Revisiting the Role of Fixed Income Along the Retirement Savings Journey
From Theory to Practice
Responsible Investing Policy Statement
How we help our clients achieve their investment goals by employing an investment approach that integrates environmental, social and corporate governance.
MFS Fixed Income History
Provides insight on MFS's deep history and expertise fixed income as well as its risk managed approach and Global Research Platform.
MFS Net Zero Progress Report
As a signatory of the Net Zero Asset Managers initiative (NZAM), MFS supports the goal of achieving net zero carbon emissions by 2050 or sooner. This report provides an update on progress across the globe since July 2021, when MFS joined the NZAM.
The Potential Benefits for European Investors of a Strategic Allocation to Emerging Market Debt
MFS Celebrates International Women’s Day 2023 | Transcript
Policy on Cluster Munitions
This Policy prescribes the application of laws adopted by certain countries that are signatories to the United Nations Convention on Cluster Munitions.
Sequence of Returns Risk: Is Your Retirement Nest Egg Prepared?
In this paper we discuss the concept of sequence risk, why it’s most pronounced in the later stages of the retirement journey, why the degree and nature of risk aren’t the same for all target-date fund lineups and how to manage it.