Helping You Find a Silver Lining

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.

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

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

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

Top-down and asset allocation perspectives

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

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

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.

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.

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.

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 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.

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.

Co-CIO of Fixed Income Pilar Gomez-Bravo, addresses many of the pressing issues facing today's bond investors, including the risk of recession and the potential effects of China's economic slowdown.

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.

This quarterly report provides an update on our sustainability efforts, in addition to proxy voting and company engagement highlights from the three three-month period ended 30 June 2023.

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.

The mid-year MFS Long-Term Capital Market Expectations, as of July 2023, includes proprietary expectations that represent a forward look for returns and risks across a variety of asset classes and regions, plus our view of current economic and financial market conditions. This version is presented in US Dollar terms.

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.

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

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.

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.

Institutional Equity Portfolio Manager Nick Paul examines the characteristics and potential benefits of a global small/mid-cap investment approach.

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.

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.

With the financial markets sending mixed signals, how can investors make sense of it all? For equity investors, it is of paramount importance to closely monitor the potential effects of increasing financial stresses on earnings expectations.

While storm clouds continue to hover over the markets, this is an interesting time for investors in fixed income. Considering the uncertainties, we believe that active security selection in fixed income has the potential to provide yield, diversification and risk management.

This article delves into the opportunities and challenges that companies and investors face from plastic pollution and biodiversity loss.

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

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.

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.

Portfolio manager Jim Fallon explains what low-volatility equity investing means and how it may be an effective strategic allocation in a diversified portfolio, especially at this point in the market cycle.

This article explores the dangers of "long-term washing" and how investors can balance short-term accountability with creating value using a long-term mindset.

After a decade of substantial growth in the private debt asset class, we believe that the tide has turned with public fixed income now offering an attractive — and less risky — alternative.

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.

This article delves into how sustainability became so supercharged and offers ways for the investment industry to move forward in the pursuit of value creation.

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

Rob Almeida expects the stress caused by the unwinding of years of bad monetary policy will create significant alpha opportunities.

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.

Our commitment to human rights is embedded in the culture and values that define our company, and we strive to maintain an environment of respect for all individuals.

The global small- and mid-cap asset class has historically offered investors access to a well-diversified, inefficient opportunity set that has outperformed large-cap stocks over the long term. We believe that the asset class remains a compelling area for asset allocators as the markets enter the next phase of the cycle.

In this case study, we discuss the importance of identifying legal risks in the context of a common form of secured municipal bond financing: lease financing.

MFS has a stated purpose to create long-term value by allocating capital responsibly. This paper sets forth our beliefs and our purpose as investors with regard to the risks and opportunities in capital allocation associated with climate change.

Institutional Equity Portfolio Manager Nick Paul explains why a dedicated allocation to global small- and mid-cap stocks may prove to be a key component of a comprehensive asset allocation framework.

Ryan McAllister and Roger Morley, Global Equity portfolio managers, answer which opportunities they are seeking.

Rob Almeida warns that while markets are forward looking, they often don't look far enough forward, leaving them vulnerable to shifts in focus.

The case for fixed income has become much stronger over the past year, and, in our view, there are compelling opportunities across the global fixed income universe that could support a range of investment objectives.

While ratings can be a helpful tool to identify and understand potential ESG risks and opportunities, we believe they should be just one of several tools used to implement ESG investing.

An effective sustainable investment approach will require an understanding of the challenges that asset managers are facing today. MFS and Eurasia Group convened a series of discussions with asset managers, asset owners and academics to flesh out these challenges and spark novel thinking to enable more effective analysis and practice.

While higher yields have generally made bonds more attractive, a more difficult operating environment ahead will require careful consideration.

Four key takeaways from Episode 7 of the All Angles podcast "Asking Better Questions: Sustainability in Fixed Income" featuring Pilar Gomez-Bravo, Director of Fixed Income – Europe.

This paper examines how understanding and even embracing the cyclical nature of the market can lead to successful outcomes for those investors who are prepared.

MFS Chief Economist Erik Weisman suspects the next business cycle will feature a bit more growth, a little more inflation and Main Street beating out Wall Street.

Listed infrastructure can complement existing private allocations by providing investors with a liquid and more diversified exposure to infrastructure assets with lower fees. Here are five reasons why investors should consider infrastructure exposure via public, listed equity.

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.

MFS Fixed Income Portfolio Manager Phillip Burgener and Fixed Income Research Analyst Qi Guan share their perspectives on today's asset-backed securities sector and how they are thinking about these type of securitized debt offerings entering the next phase of the market cycle.

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

Institutional Portfolio Manager Chris Zani provides insight on the unusual performance of the quality factor globally in 2022.

MFS Director of Fixed Income - Europe Pilar Gomez-Bravo explains the value of an active management approach to global fixed income across full market cycles, particularly during times of market volatility and uncertainty.

This ESG in Depth examines the topic of natural capital and how it, along with the ecosystem services its provides, poses a material systematic risk and at the same time presents opportunities in several key sectors.

Nearly half of institutions want active managers with a strong culture. Read Carol Geremia's paper on why a culture of diversity is a great place to start.