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MFS Launches Global Opportunistic Bond Fund

Amisha Mehta Deputy Editor 15 September 2016

MFS Launches Global Opportunistic Bond Fund

The asset manager is offering exposure to a globally diversified, multi-sector fixed income portfolio.

MFS Investment Management has launched a flexible fixed income fund designed to generate returns from a diversity of alpha sources through variable market conditions.

The MFS Meridian Funds – Global Opportunistic Bond Fund will focus its investments in issuers located in developed markets, but may also invest in emerging markets. It will invest in corporate and government issuers and mortgage-backed and other asset-backed securities, as well as investment-grade and below investment-grade debt instruments. The fund aims to allocate risk where it is most attractively priced in order to generate returns.

Its benchmark-aware approach seeks to balance higher yield and total return potential while still providing the diversification benefits traditionally offered by fixed income. 

The Luxembourg-domiciled fund is expected to use derivatives primarily for hedging and/or investment purposes to manage exposure to particular areas of the markets. Richard Hawkins and Robert Spector will be responsible for asset allocation and risk budgeting in the portfolio as the fund's lead managers. 

“The need for enhanced fixed income return potential is real in the current slow-growth, low-rate environment. In our view, different sources of alpha are likely to drive performance, depending on market conditions, and so the ability to allocate across different opportunities enhances efforts to generate performance,” said Lina Medeiros, president of MFS International.

As at 31 July 2016, MFS managed $438.9 billion in assets on behalf of individual and institutional investors worldwide. The firm has investment offices in Boston, Hong Kong, London, Mexico City, São Paulo, Singapore, Sydney, Tokyo and Toronto.

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