Anyone using MFS Funds?
I can’t tell you how many Jones guys I talk to that use just that fund as their core bond holding. Not smart. It’s used for generating higher than average income with investment grade bonds. Not that it is in any way a bad fund. It’s very good for it’s purpose. But most of it’s peer group invests a large portion in Treasuries and mortgages. It’s stated clearly in their objective and in the prospectus. And if you look at it’s performance, it varies widely from the benchmark in most years (though oddly matches the average annual returns of the index over long periods of time), but with a higher yield.Ironically, they have greatly incrased their exposure to Treasuries and mortgages in the past year (from 35 to 50%). It often surprises me when advisors don't know what they are investing in.