MSTMX

About MSTMX

Morningstar Multisector Bond Fund is an actively managed mutual fund focused on delivering total return through a blend of current income and capital appreciation. The strategy invests predominantly in fixed-income securities across multiple sectors, including U.S. Treasuries, investment-grade corporates, high yield credit, and select emerging markets sovereigns, with flexibility to use derivatives for interest rate and currency management. The fund typically maintains an intermediate interest-rate profile, reflected in a low-to-moderate sensitivity to rates and an effective duration around five years, aiming to balance income with volatility control. Its diversified mandate allows dynamic allocation among government, corporate, securitized, and non-U.S. debt, supported by tactical positions in futures and currency contracts to fine-tune exposure. Classified in the multisector bond category, it targets a broad opportunity set rather than a single segment of the bond market, with a trailing twelve-month yield indicative of its income orientation. The institutional share class features an above-average distribution fee level and a moderate expense ratio, while maintaining low concentration in its top holdings to manage issuer-specific risk.