Fund Evaluator:
Morningstar Multisector Bond (MSTMX)
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Fund Details
Morningstar Multisector Bond Overview
Morningstar Multisector Bond (MSTMX) is an actively managed Taxable Bond Multisector Bond fund. Morningstar launched the fund in 2018.
The investment seeks total return through a combination of current income and capital appreciation. The fund will normally invest at least 80% of its assets in debt securities (commonly referred to as "bonds") of varying maturity, duration, and quality across various sectors of the fixed-income market. Due to the opportunistic nature of its strategy, the fund may also invest up to 20% of its assets in equity securities, including common stocks and convertible securities.
About Morningstar Multisector Bond (MSTMX)
There are 11 members of the management team with an average tenure of 3.80 years: Travis King (2022), Brian Kennedy (2021), Ricky Williamson (2019), Eric Williams (2025), Alfonzo Bruno (2025), Peter Sheehan (2023), Christopher Hays (2024), Jae Lee (2024), Sam Wilson (2026), Matthew Eagan (2018), David Robbins (2018). Management tenure is more important for actively managed funds than passive index funds.
The fund has 4 primary benchmarks: Bloomberg EMLcCurGovxKor10%ctycap TR USD index with a weighting of 20%, Bloomberg EM USD Agg Sovereign TR USD index with a weighting of 20%, Bloomberg US Corporate High Yield TR USD index with a weighting of 40% and Bloomberg US Corp Bond TR USD index with a weighting of 20%. Morningstar Multisector Bond has 1329 securities in its portfolio. The top 10 holdings constitute 17.2% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Morningstar Multisector Bond is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Morningstar Multisector Bond has 42.9% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.7%. There is 0.1% allocated to foreign stock, and 0.8% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 90.7% (47.9% domestic bond, 42.9% foreign bond and 1.0% convertible bond). Morningstar Multisector Bond has 6.7% of the portfolio in cash.
Assets Under Management
The fund has $186 million in total assets, which is below the $1 billion average for the Multisector Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
MSTMX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Morningstar Multisector Bond expense ratio is above average compared to funds in the Multisector Bond category. Morningstar Multisector Bond has an expense ratio of 0.79%, which is 17% lower than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Morningstar Multisector Bond has a portfolio turnover rate of 177%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 162% for the Multisector Bond category.
Recently, in the month of June 2026, Morningstar Multisector Bond returned 0.4%, which earned it a grade of B, as the Multisector Bond category had an average return of 0.2%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Morningstar Multisector Bond has a trailing yield of 6.92%, which is above the 5.25% category average. The fund normally distributes its income monthly.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Morningstar Multisector Bond Grades
Year to date, the fund has returned 2.5%, 0.9 percentage points better than the category, which translates into a grade of A. The fund has returned 8.0% over the past year (grade of A), 8.4% over the past three years (grade of A) and 2.5% per year over the past five years (grade of C).
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MSTMX Trailing NAV Total Returns Data as of 6/30/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| MSTMX Return (NAV) | 0.4% | 3.5% | 8.0% | 8.4% | 2.5% | na |
| MSTMX Grade | B | A | A | A | C | na |
| +/- Category | 0.1% | 1.6% | 2.8% | 1.5% | -0.1% | na |
| Multisector Bond Avg | 0.2% | 1.9% | 5.3% | 6.9% | 2.6% | 3.7% |
| MSTMX Tax Cost Ratio | na | na | 2.8% | 2.4% | 2.1% | na |
MSTMX Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| MSTMX Return (NAV) | 2.5% | 12.1% | 4.6% | 10.8% | -13.1% | -2.9% | 6.5% | 10.5% | na | na | na |
| MSTMX Grade | A | A | D | A | F | F | C | C | na | na | na |
| +/- Category | 0.9% | 4.0% | -1.1% | 2.3% | -3.0% | -5.1% | 0.1% | 0.3% | na | na | na |
| Multisector Bond Avg | 1.6% | 8.1% | 5.7% | 8.4% | -10.1% | 2.2% | 6.4% | 10.3% | -1.9% | 6.6% | 7.5% |
| Risk Measures | |
| Standard Deviation: | 6.0% |
| Total Risk Index: | 0.49 - Below Average |
| Category Risk Index: | 1.35 - High |
| Category Risk Grade: | F (98% Rank) |
| Beta: | 0.96 |
| R-Squared: | 79% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Large-Cap Value |
| Bond Investment Style: | High Quality Moderate Sensitivity |
| Yield: | 6.9% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | |
| Total Assets: | $186 Mil |
| Fund Total Assets: | $ 187 Mil |
| Share Class Type: | Inst |
| Portfolio Turnover: | 177% |
Management Team
| Number of Managers: 11 | |||
| Longest Tenure: 7.7 years | |||
| Average Tenure: 3.8 years | |||
| Managers (Year): Eagan Matthew (2018), Robbins David (2018), Williamson Ricky (2019), Kennedy Brian (2021), King Travis (2022), Sheehan Peter (2023), Hays Christopher (2024), Lee Jae (2024), Bruno Alfonzo (2025), Williams Eric (2025), Wilson Sam (2026) | |||
Portfolio Composition (as of 5/31/26)
| # of Holdings: | 1329 |
| % in Top 10 Holdings: | 17.2% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 42.9% |
Portfolio Allocation |
|
| Domestic Stock: | 0.7% |
| Foreign Stock: | 0.1% |
| Preferred Stock: | 0.8% |
| Domestic Bond: | 47.9% |
| Foreign Bond: | 42.9% |
| Convertible Bond: | 1.0% |
| Other: | 0.0% |
| Cash: | 6.7% |
Purchase Information
| Fund Family: | Morningstar |
| Phone Number: | 202-551-8090 |
| Website: |
| Status: | Open |
| Inception Date: | November 2, 2018 |
| Min. Initial Purchase: | $ 0 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.79% ( Rating : Above Avg ) |
| Category Average Expense Ratio (%): | 0.95% |
| Share Class: | Morningstar Multisector Bond |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
