2023 MFS Annual Sustainability Report

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.

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

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.

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.

Monthly retirement insights

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.

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.

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.

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

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

Global fixed income market analysis through a macroeconomic lens.

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.

In this paper, we address and challenge three common misperceptions that have led to the increased prevalence of passive investments in defined contribution plans.

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.

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 December 2023.

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.

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.

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.

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.

Stay informed with the latest research, regulatory updates, returns and emerging trends in the DC landscape.

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.

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.

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.

The January 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 is presented in US Dollar terms and details our market expectations and our view of current economic and capital market conditions.

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

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.

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.

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.

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.

This paper uncovers how to distinguish sustainability signals from noise in fixed income.

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.

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.

This paper examines the "just transition" concept, which we believe is becoming an increasingly important topic for investors as countries and companies are strengthening efforts to decarbonize, green their economies, and build resilience for the future.

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.

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.

Carol Geremia speaks to how policy, the economy and individual can play a bigger game in each of their areas.

MFS Sustainable Investing experts explain why they believe engagement is more powerful than exclusion as a way to encourage long-term value creation and economic growth.

From Theory to Practice

Annual report offering a comprehensive review of our approach to sustainability, material factor integration, proxy voting and engagement activities at MFS for the 2022 calendar year.

We examine the strategic case for investing in the taxable municipal bond asset class and present the argument for active investment to seek alpha. We also review why we think it is currently an attractive time to consider an allocation to the taxable municipal market.

This case study highlights the power of active management, and how a forward-looking, bottom-up, ESG-rating agnostic approach can unveil untapped investment opportunities for investors.

We discuss the four stages of the typical cycle for emerging markets local debt, the fundamental framework of the marketplace, and the potential opportunity set offered to today's investors.

We have begun a new regime, where investors will need to do a lot more homework and may find it advantageous to use a mosaic of not only valuation, but also fundamental tools, to help guide the way through this cycle.

This article delves into how we assess financial materiality, governance factors and return drivers in emerging market debt.

MFS Chief Economist provides perspective on the current economy, central bank thinking, and the trajectory of a potential recessionary environment.

In this era of volatility, what are the implications for asset allocation and what risk and opportunities sit beyond the headlines? In partnership with Eurasia Group, a geopolitical risk firm that helps clients understand and navigate the changing global landscape, MFS uncovers the major implications on emerging technologies and energy transition.

Like other technological advancements, artificial intelligence will almost certainly disrupt many companies, and perhaps entire industries, but how?  We share our perspective on AI and its potential impact on the real economy and existing business models.

The prevailing macro regime, the “fear of the Fed,” is likely to end in the near future. A shift away from it should bring better prospects for fixed income returns, and in our view it may be time to consider raising allocations to fixed income.

MFS CEO Mike Roberge discusses the shifting dynamics of today's marketplace and how active managers are positioned to tune out the short-term noise and identify those things that drive long-term value.

Capacity management is a key component of a client-centric philosophy and an active management approach to fixed income portfolios.

We provide a high-level overview of recent developments in artificial intelligence technology, the implications for industries and thoughts around investment opportunities.

Emerging market local debt is a cyclical asset class, where each cycle is generally characterized by four stages. As we approach the fourth stage, we believe that local debt could become an attractive option for investors.

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

MFS Global Investment Strategist Rob Almeida offers a mid-year perspective on the global equity and fixed income markets.

This article describes how the value a company creates can be divided between profits to investors or value to society. and how a shift away from a ‘fixed pie’ mentality can help to grow both investor profit and societal value.

Kim Hyland, Head of Global Institutional Relationship Management, and Rob Almeida, Global Investment Strategist, examine current trends affecting institutional investors and explain why the environment ahead will be fundamentally different than the past couple of decades.

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.

Rob Almeida warns that headlines are often distractions. It's not that they're not important, it's just that they're a small part of a larger mosaic.

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.

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.

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