Fixed Income for the Long Term: Our Guiding Principles

Pilar Gomez‐Bravo, CFA Co‐CIO, Fixed Income and Portfolio Manager

 

Title: Fixed Income for the Long Term: Our Guiding Principles

 

At MFS®, we believe we add value to our clients through delivering the three Cs: collaboration, conviction and consistency. The first C is collaboration. Active collaboration across our investment platform allows us to identify risks and opportunities early and also to be nimble in the risk budgeting and asset allocation processes. Our equity analysts go with our credit analysts to meet companies’ managements. Our quant teams work closely with our fixed income teams to develop frameworks and tools that allow us to become better decision makers. And this is particularly important in the context of fixed income, which is an over-the-counter asset class that sometimes suffers from bouts of illiquidity.

The second C is conviction. As active managers, we scour the world in search of mispriced risk premia, and volatility, because our investors are deploying higher risk following such dislocations. In essence, we deliver the collective wisdom of our investment platform in a nice, tightly risk-managed package that aligns with our clients’ mandates. And the last C is consistency. As long-term investors, we aim to deliver long-term, consistent outperformance. And we do this through the consistency of deploying our investment process over time. And that allows us to deliver to our clients value through responsibly allocating capital on behalf of our clients.

 

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.

 

Distributed by: U.S. - MFS Investment Management; Latin America - MFS International Ltd. Please note that in Europe and Asia Pacific, this document is intended for distribution to investment professionals and institutional clients only. In Canada, this document is intended for institutional use only. Note to Canadian readers: MFS Investment Management Canada Limited. No securities commission or similar regulatory authority in Canada has reviewed this communication. Note to UK and Switzerland readers: Issued in the UK and Switzerland by MFS International (U.K.) Limited (“MIL UK”), a private limited company registered in England and Wales with the company number 03062718, and authorised and regulated in the conduct of investment business by the UK Financial Conduct Authority. MIL UK, an indirect subsidiary of MFS® , has its registered office at One Carter Lane, London, EC4V 5ER. Note to Europe (ex UK and Switzerland) readers: Issued in Europe by MFS Investment Management (Lux) S.à r.l. (MFS Lux) – authorized under Luxembourg law as a management company for Funds domiciled in Luxembourg and which both provide products and investment services to institutional investors and is registered office is at S.a r.l. 4 Rue Albert Borschette, Luxembourg L-1246. Tel: 352 2826 12800. This material shall not be circulated or distributed to any person other than to professional investors (as permitted by local regulations) and should not be relied upon or distributed to persons where such reliance or distribution would be contrary to local regulation; Singapore - MFS International Singapore Pte. Ltd. (CRN 201228809M); Australia/New Zealand - MFS International Australia Pty Ltd (“ MFS Australia”) holds an Australian financial services licence number 485343. MFS Australia is regulated by the Australian Securities and Investments Commission.; Hong Kong - MFS International (Hong Kong) Limited (“MIL HK”), a private limited company licensed and regulated by the Hong Kong Securities and Futures Commission (the “SFC”). MIL HK is approved to engage in dealing in securities and asset management regulated activities and may provide certain investment services to “professional investors” as defined in the Securities and Futures Ordinance (“SFO”).; For Professional Investors in China – MFS Financial Management Consulting (Shanghai) Co., Ltd. 2801-12, 28th Floor, 100 Century Avenue, Shanghai World Financial Center, Shanghai Pilot Free Trade Zone, 200120, China, a Chinese limited liability company registered to provide financial management consulting services.; Japan - MFS Investment Management K.K., is registered as a Financial Instruments Business Operator, Kanto Local Finance Bureau (FIBO) No.312, a member of the Investment Trust Association, Japan and the Japan Investment Advisers Association. As fees to be borne by investors vary depending upon circumstances such as products, services, investment period and market conditions, the total amount nor the calculation methods cannot be disclosed in advance. All investments involve risks, including market fluctuation and investors may lose the principal amount invested. Investors should obtain and read the prospectus and/or document set forth in Article 37-3 of Financial Instruments and Exchange Act carefully before making the investments.

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