The Big Mac on Fixed Income Allocation

A review of the week’s top global economic and capital markets news.

An examination of market trends and dynamics across the global equity markets.

A review of the week’s top global economic and capital markets news.

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.

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.

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.

A review of the week’s top global economic and capital markets news.

The MFS Digest summarizes key market themes and topics affecting investors and features related thought leadership from across MFS.

Europe regional edition of our Long-Term Capital Market Expectations. These proprietary expectations look at return and risk across asset classes and regions in Euros terms.

A review of the week’s top global economic and capital markets news.

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.

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.

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.

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.

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.

Rob Almeida suggests that investors should be more concerned about fundamentals than potential rate cuts.

A review of the week’s top global economic and capital markets news.

In this edition of The Big Mac, we discuss the role of fixed income in a positively correlated world.

A review of the week’s top global economic and capital markets news.

A review of the week’s top global economic and capital markets news.

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.

A review of the week’s top global economic and capital markets news.

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).

A review of the week’s top global economic and capital markets news.

A review of the week’s top global economic and capital markets news.

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.

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.

Those who have, spend. Those who don’t, borrow… then spend.

A review of the week’s top global economic and capital markets news.

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.

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.

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.

A review of the week’s top global economic and capital markets news.

A review of the week’s top global economic and capital markets news.

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.

A review of the week’s top global economic and capital markets news.

This MFS Case Study illustrates our collaborative, security-specific approach to proxy voting.

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.

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.

Explores the implications that higher interest rates may have for sovereign emerging market debt (EMD) investors.

A review of the week’s top global economic and capital markets news.

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.

A review of the week’s top global economic and capital markets news.

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.

A review of the week’s top global economic and capital markets news.

Provides commentary on the current geopolitical environment in the Middle East and how the Team is positioning its portfolios.

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.

A review of the week’s top global economic and capital markets news.

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.

Thought leadership paper around how factor returns behaved in periods of past rate cuts.

A review of the week’s top global economic and capital markets news.

This summary explores the impact of biodiversity on companies and provides practical ways for investors to assess the risks and opportunities from it.

A review of the week’s top global economic and capital markets news.

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.

A review of the week’s top global economic and capital markets news.

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.

A review of the week’s top global economic and capital markets news.

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.

A review of the week’s top global economic and capital markets news.

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.

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.

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.

A review of the week’s top global economic and capital markets news.

An examination of why there's an opportunity for value-focused investors in the current environment.

A review of the week’s top global economic and capital markets news.

This case study demonstrates our bottom-up analysis of Schneider Electric and how we identify investment opportunities in a decarbonizing world.

A review of the week’s top global economic and capital markets news.

Rob Almeida examines how indexation has amplified the disconnect between valuations and fundamentals.

A review of the week’s top global economic and capital markets news.

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.

A review of the week’s top global economic and capital markets news.

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.

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.

A review of the week’s top global economic and capital markets news.

A review of the week’s top global economic and capital markets news.

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.

A review of the week’s top global economic and capital markets news.

A review of the week’s top global economic and capital markets news.

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.

A review of the week’s top global economic and capital markets news.

Forward-looking snapshot of what we believe will be relevant and may influence the markets and economy.

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.

A review of the week’s top global economic and capital markets news.

A summary of all key themes and topics covered from All Angles Season 2 podcast.

A review of the week’s top global economic and capital markets news.

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.

A review of the week’s top global economic and capital markets news.

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 review of the week’s top global economic and capital markets news.

A review of the week’s top global economic and capital markets news.

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?

A review of the week’s top global economic and capital markets news.

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.

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.

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 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.

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.

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.

This paper provides an overview of constructivism stewardship and how it works in practice.

Views on an Increasingly Complex World

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.

How we help our clients achieve their investment goals by employing an investment approach that integrates environmental, social and corporate governance.

Provides insight on MFS's deep history and expertise fixed income as well as its risk managed approach and Global Research Platform.

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.

This Policy prescribes the application of laws adopted by certain countries that are signatories to the United Nations Convention on Cluster Munitions.