MFS US Credit Video | MFS US Credit Fixed Income Investing

VO: At MFS, our specialized US Credit Team of portfolio managers, analysts, and researchers work together creating a unified approach based on shared global insights and long-term conviction.

Jay Mitchell: There are four key tenets of our investment philosophy. We believe Security Selection is the most consistent source of alpha and leverages the strength of MFS, our Global Investment Platform. Second, flexibility to allocate across region, sector, and quality, complements our security selection and enhances our active returns. Third, effective Portfolio Construction should result in diversified portfolios where active exposures aligned with the highest conviction views of our analysts and portfolio managers. And lastly, Risk Management should be integrated in all aspects of the process with a particular focus on asymmetric risks.

VO: At the portfolio level, the team focuses on the macro environment and corporate fundamentals to make investment decisions.

Alex Mackey: Our perspectives on the macro are informed by a number of strategy forms that we have critically. And a differentiated input that we have at MFS is a macro-micro form. This group brings together bottom-up fundamental analysts to provide macro perspectives. Those are married together with our economists top-down views. Taken together, these allow us to be in a position to navigate changing market dynamics and to be able to have a differentiated perspective on how to pursue those. Additionally, our focus is on long-term. We're willing to forgo short-term opportunities in the interest of pursuing repeatable, durable, through-cycle excess returns.

VOr: Open dialogue and connection are key to our active fixed income approach and why our global investment teams regularly share information.

Lauren McCarthy: Security selection involves a strong partnership between research analysts and portfolio managers. This is a key source of value add within our portfolios. Research analysts are investors and are responsible for generating ideas within our portfolios. This comes from a combination of deep fundamental analysis and a strong relative value framework. We benefit from being part of a large and highly collaborative global research platform. Within this platform, both equity and fixed income work together on global sector teams. All of us analysts come together to meet with management teams, which we have great access to, as well as work on industry themes, sector shifts, anything that can help leverage our ideas within the portfolios.

VO: We focus on managing risk in alignment with our views on fundamentals and valuations.

Jay Mitchell: Portfolio construction combines our top down views developed within our risk management process with the bottom up security selection from our investment team. We build portfolios that are sufficiently diversified with active exposures that align with our highest conviction recommendations. We do this in close collaboration with our risk management team to ensure risks are both understood and intended. Ultimately, our portfolio construction and risk management process are designed to align with client expectations and objectives.

VO: Our disciplined, actively managed approach offers clients access to comprehensive fixed income expertise, a range of strategies, and active returns for long-term goals.

Craig Anzlovar: Our portfolios are a building block within our clients' broader asset allocations, and so we've developed an investment platform and value proposition that's really centered around that role. First and foremost, it's delivering competitive, long-term, absolute, and risk adjusted excess returns that are consistent with our clients' expectations. Beyond performance, we have the infrastructure and resourcing to deliver solutions through a range of vehicle types. As well as tailor portfolios to client specific risk and return objectives. And then finally is delivering a superior level of client servicing, which provides significant transparency into our investment process portfolios and performance.

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. The views expressed are those of the author(s) and are subject to change at any time. These views are for informational purposes only and should not be relied upon as a recommendation to purchase any security or as a solicitation or investment advice. No forecasts can be guaranteed.

 

The views expressed are those of the speaker and are subject to change at any time. These views do not necessarily reflect the views of MFS or others in the MFS organization, and should not be relied upon as investment advice, as securities recommendations, or as an indication of trading intent on behalf of any MFS investment product.

 

This material is for information only with no consideration given to the specific investment objective, financial situation and particular needs of any specific person. Any securities and/or sectors mentioned herein are for illustration purposes only and should not be construed as an investment recommendation. Investment involves risk. Past performance or any prediction, projection or forecast is not indicative of future performance. The information contained herein may not be copied, reproduced or redistributed without the express consent of MFS. While reasonable care has been taken to ensure the accuracy of the information as at the date of publication, MFS does not give any warranty or representation, expressed or implied, and expressly disclaims liability for any errors or omissions. Information may be subject to change without notice. MFS accepts no liability for any loss, indirect or consequential damages, arising from the use of or reliance on this material.

 

The views expressed are those of the author and are subject to change at any time. These views are for informational purposes only and should not be relied upon as a recommendation to purchase any security or as a solicitation or investment advice. No forecasts can be guaranteed.

 

Unless otherwise indicated, logos and product and service names are trademarks of MFS® and its affiliates and may be registered in certain countries.

 

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