MFS Investment Management has announced the launch of the MFS Global Opportunistic Fixed Income Trust designed to generate returns from diverse sources of alpha in a variety of market conditions.
MFS said the trust takes an integrated research approach, looking to identify inefficiencies in global fixed income markets.
"[The trust] seeks out a broad range of opportunities to add value, including those involving global sector allocations, security selection, duration and currency management over a full market cycle," MFS said.
MFS said the trust will focus on issuers located in developed markets, as well as investing in emerging markets.
"It invests in corporate government issuers and mortgage-backed and other asset backed securities, as well as investment grade and below-investment-grade debt instruments," MFS said.
"Through this global opportunity set, the fund aims to allocate risk where it is mostly attractively priced in order to generate returns."
Ross Cartwright, MFS managing director, head of retail, Australia and New Zealand, said: "With Australian interest rates at a record low, using a global approach to seek additional sources of income and improved risk/reward in fixed income is becoming more important."
"In our view, alpha will play a larger role in overall total returns going forward. Having a manager who can use a global opportunity set to allocate across the asset class enhances efforts to generate performance."
MFS said Pilar Gomez-Bravo and Robert Spector will serve as the trust's lead managers and are responsible for asset allocation and risk budgeting in the portfolio.
They will work with a group of sector-level portfolio managers who, in addition to providing insights on relative value for their sectors, are also responsible for buy and sell recommendations.
Owen Murfin will be the institutional portfolio manager overseeing the trust. In this role, he will advise and communicate on the management of the trust.
"This highly experienced team has a long track record of managing global portfolios, with extensive investment experience in various asset classes and regions around the world," MFS said.
The trust will be available to both institutional and wholesale clients in Australia and New Zealand.