6 9

Global Alternative Strategy Fund

DVRAX
$ 12.69
$0.00 As of 03/28/24
$132M
As of 02/29/24
Morningstar
View Overall Morningstar Ratings Information

Global Alternative Strategy Fund

DVRAX
$0.00 As of 03/28/24
As of 02/29/24
DVRAX
$ 12.69
$0.00 As of 03/28/24
$132M
As of 02/29/24
Morningstar
View Overall Morningstar Ratings Information
  • Overview

    INVESTMENT OBJECTIVE

    Seeks total return.

    INVESTMENT FOCUS

    Goal is total return that meets or exceeds 2-4% over the ICE BofA 0-3 Month U.S. Treasury Bill Index (net of fund expenses), over a full market cycle, with less reliance on favorable market conditions

    Seeks to generate consistent returns over time by managing active security selection separately from tactical equity, fixed income and currency market allocation

    The fund uses a flexible approach, seeking lower correlation to traditional equity and fixed income markets

    Fund Information

    • Fund Commencement 12/20/07
    • Net Assets ($ M) As of 02/29/24 $132.32
    • Fiscal Year End OCTOBER
    • Benchmark

      Bloomberg Barclays 1-3 Year U.S. Treasury Bond Index measures U.S. Treasury bonds with a maturity from 1 year up to (but not including) 3 years.

      Bloomberg 1-3 Year U.S. Treasury Bond Index

    Share Class Information

    • Class Inception 12/20/07
    • Net Asset Value (NAV) As of 03/28/24 $12.69
    • Most Recent NAV Change As of 03/28/24 $0.00 | 0.00%
    • Fund Number 1041
    • Maximum Sales Charge 5.75%
    • Gross Expense Ratio

      Gross Expense Ratio: The Gross Expense Ratio is the fund's total operating expense ratio from the fund's most recent prospectus.

      1.57%
    • Net Expense Ratio

      Net Expense Ratio: The Net Expense Ratio reflects the reduction of expenses from contractual fee waivers and reimbursements. Elimination of these reductions will result in higher expenses and lower performance.


      These reductions will continue until at least 02/28/25

      1.37%

    MANAGERS

    Fund Positioning (%)

    Derivative Overlay Positions 1
    Active Security Selection Long Short 1,* Net Exposure
    31.66
    Europe ex-U.K. 11.78 8.73 -3.89 16.61
    U.S. Large Cap 30.58 -22.75 7.83
    Japan 4.05 0.54 4.59
    Emerging Markets 2.31 5.24 -3.68 3.88
    Asia/Pacific ex-Japan 1.52 0.87 -2.02 0.37
    North America ex-U.S. 1.94 -1.72 0.22
    Developed - Middle East/Africa 0.04 0.04
    U.S. Small/Mid Cap 18.10 -18.65 -0.55
    United Kingdom 2.59 -3.93 -1.34
    52.79
    U.S. 13.99 52.19 -11.94 54.23
    Asia/Pacific ex-Japan 0.59 7.23 7.83
    Japan 0.54 2.95 3.49
    Emerging Markets 0.40 0.40
    North America ex-U.S. 1.38 -3.67 -2.29
    United Kingdom 0.62 -4.12 -3.50
    Europe ex-U.K. 1.95 -9.32 -7.37
    2.41
    U.S. 2.15 2.15
    Non-U.S. 0.26 0.26
    Cash & Cash Equivalents 5.73
    Other3 7.41
    Total Net Exposure Summary 100.00
    1

    Market exposure of derivative position utilized to adjust fund.

    3Other. Other consists of: (i) currency derivatives and/or (ii) any derivative offsets.
    *Short positions, unlike long positions, lose value if the underlying asset gains value.

    Important Risk Considerations

    The fund may not achieve its objective and/or you could lose money on your investment in the fund.

    Stock: Stock markets and investments in individual stocks are volatile and can decline significantly in response to or investor perception of, issuer, market, economic, industry, political, regulatory, geopolitical, environmental, public health, and other conditions.

    Bond: Investments in debt instruments may decline in value as the result of, or perception of, declines in the credit quality of the issuer, borrower, counterparty, or other entity responsible for payment, underlying collateral, or changes in economic, political, issuer-specific, or other conditions. Certain types of debt instruments can be more sensitive to these factors and therefore more volatile. In addition, debt instruments entail interest rate risk (as interest rates rise, prices usually fall). Therefore, the portfolio's value may decline during rising rates. Portfolios that consist of debt instruments with longer durations are generally more sensitive to a rise in interest rates than those with shorter durations. At times, and particularly during periods of market turmoil, all or a large portion of segments of the market may not have an active trading market. As a result, it may be difficult to value these investments and it may not be possible to sell a particular investment or type of investment at any particular time or at an acceptable price. The price of an instrument trading at a negative interest rate responds to interest rate changes like other debt instruments; however, an instrument purchased at a negative interest rate is expected to produce a negative return if held to maturity.

    International: Investments in foreign markets can involve greater risk and volatility than U.S. investments because of adverse market, currency, economic, industry, political, regulatory, geopolitical, or other conditions.

    Derivatives: Investments in derivatives can be used to take both long and short positions, be highly volatile, involve leverage (which can magnify losses), and involve risks in addition to the risks of the underlying indicator(s) on which the derivative is based, such as counterparty and liquidity risk.

    Strategy: There is no assurance that the portfolio will meet its target total rate of return, or have lower volatility than that of the overall equity market, over the long term or for any year or period of years.  The portfolio's strategy to manage its exposure to asset classes, markets, and currencies may not produce the intended results. It is expected that the portfolio will generally under-perform the equity markets during strong, rising equity markets.

    Allocation: MFS' assessment of the risk/return potential of asset classes, markets and currencies and its adjustments to the portfolio's exposure to asset classes, markets and currencies may not produce intended results and/or can lead to an investment focus that results in the portfolio underperforming other portfolios that invest in similar investment types or have similar investment strategies and/or underperform the markets in which the portfolio invests.

    Strategy: The portfolio's strategy to blend fundamental and quantitative research may not produce the intended results. In addition, MFS fundamental research is not available for all issuers.

    Quantitative Strategy: MFS' investment analysis, development and use of quantitative models, and selection of investments may not produce the intended results and/or can lead to an investment focus that results in underperforming portfolios with similar investment strategies and/or the markets in which the portfolio invests. The proprietary and third party quantitative models used by MFS may not produce the intended results for a variety of reasons, including the factors used, the weight placed on each factor, changing sources of market return, changes from the market factors' historical trends, and technical issues in the development, application, and maintenance of the models (e.g., incomplete or inaccurate data, programming/software issues, coding errors and technology failures).

    Please see the prospectus for further information on these and other risk considerations.

  • Performance

    Performance

    Average Annual Total Returns

    Average Annual Total Returns (%)

    These results represent the percent change in net asset value.
    Monthly | Quarterly As of 12/31/23 (*YTD Updated Daily, As of 03/27/24 , subject to revision and not annualized.)
      Performance data shown represents past performance and is no guarantee of future results. Investment return and principal value fluctuate so your shares, when sold, may be worth more or less than the original cost; current performance may be lower or higher than quoted.
      MORNINGSTAR RATING
      Morningstar Overall Rating As of 02/29/24 Class A Shares

      Morningstar Macro Trading

      Morningstar ratings are based on risk adjusted performance.

      OVERALL
      Out Of Funds
      NA
      OVERALL MORNINGSTAR RATING
      Morningstar Overall Rating As of 02/29/24 Class A Shares

      Morningstar Macro Trading

      Morningstar ratings are based on risk adjusted performance.

      NA
      THREE YEAR
      Out Of Funds
      NA
      FIVE YEAR
      Out Of Funds
      NA
      TEN YEAR
      Out Of Funds
      NA

      Important Performance Information

      Performance results reflect any applicable expense subsidies and waivers in effect during the periods shown. Without such subsidies and waivers the fund's performance results would be less favorable. All results are historical and assume the reinvestment of dividends and capital gains.

      Performance information for periods prior to July 13, 2018 reflects periods when a subadvisor was responsible for managing the fund's tactical asset allocation overlay under a different investment process.

      Sales Charges

      Class A shares ("A") results include the maximum sales charge.

      Annual Rate of Return

      Annual Rate of Return (%)

      As of 12/31/23 | Benchmark: Bloomberg 1-3 Year U.S. Treasury Bond Index
      annual rate of return table
      2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
      At NAV 2.36 -1.87 -3.73 6.18 -0.71 12.81 4.42 3.43 -5.46 8.95
      With Sales Charge -3.53 -7.51 -9.26 0.08 -6.42 6.32 -1.58 -2.51 -10.89 2.69
      Bloomberg 1-3 Year U.S. Treasury Bond Index 0.63 0.56 0.86 0.42 1.56 3.59 3.16 -0.60 -3.82 4.29
      At NAV With Sales Charge Bloomberg 1-3 Year U.S. Treasury Bond Index
      2023 8.95 2.69 4.29
      2022 -5.46 -10.89 -3.82
      2021 3.43 -2.51 -0.6
      2020 4.42 -1.58 3.16
      2019 12.81 6.32 3.59
      2018 -0.71 -6.42 1.56
      2017 6.18 0.08 0.42
      2016 -3.73 -9.26 0.86
      2015 -1.87 -7.51 0.56
      2014 2.36 -3.53 0.63
      Pricing & Distributions

      Pricing History

      • Market Price (MP): 
      Maximum data displayed is for the most recent 10 years
      Historical MP Lookup
      Enter date for which you wish to obtain a Historical MP for this fund

      Historical MP may not be available for all dates.

      Distributions
      The Record Date is the date on which a fund declares a distribution. To receive the distribution, an investor must be a shareholder of record on that date.

      The Payable Date is the date on which the distribution is paid to shareholders.

      Dividend Rate per Share is the amount of dividend that a shareholder will receive for each share held. It can be calculated by taking the total amount of dividends paid and dividing it by the total shares outstanding.

      Dividend Reinvestment at NAV is the automatic reinvestment of shareholder dividends in more shares at net asset value.

      Ex-Dividend Date is the date on which a fund goes ex-dividend. The interval between the announcement and the payment of the next dividend. An investor must own the fund before the ex-dividend date to be eligible for the dividend payout.

      Long-term Capital Gain The gain on the sale of a capital asset where the holding period was more than 12 months and the profit was subject to the long-term capital gains tax. (Source: Barron's Dictionary of Finance and Investment Terms)

      Short-term Capital Gain For tax purposes the profit realized from the sale of securities or other capital assets held for less than 12 months. Short-term gains are taxable at ordinary income rates to the extent they are not reduced by offsetting capital losses. (Source: Barron's Dictionary of Finance and Investment Terms)

      Updated Daily As of 03/28/24

      Record Date Ex-Date Payable Date Type of Earnings Rate per Share (US$) Reinvestment NAV (US$)
      12/20/23 12/21/23 12/22/23 Dividend 0.11314 11.95
      Past performance is no guarantee of future results. Please consult your tax advisor for further information.
    • Portfolio & Holdings Information

      Portfolio & Holdings Information
      Portfolio characteristic data are based on unaudited net assets.

      The portfolio is actively managed, and current holdings may be different.

      Sector, Holding & Characterstics

      Performance Statistics

      Alpha is a measure of the portfolio's risk-adjusted performance. When compared to the portfolio's beta, a positive alpha indicates better-than-expected portfolio performance and a negative indicates alpha worse-than-expected portfolio performance.

      Beta is a measure of the volatility of a portfolio relative to the overall market. A beta less than 1.0 indicates lower risk than the market; a beta greater than 1.0 indicates higher risk than the market. It is most reliable as a risk measure when the return fluctuations of the portfolio are highly correlated with the return fluctuations of the index chosen to represent the market.

      Information ratio is a measure of consistency in excess return. It is calculated by taking the annualized excess return over a benchmark and dividing it by the annualized standard deviation of excess return.

      R squared represents the percentage of the portfolio's movements that can be explained by the general movements of the market.  Index portfolios will tend to have values very close to 100.  R squared is not a measure of performance.

      The Sharpe Ratio is a risk-adjusted measure calculated to determine reward per unit of risk. It uses a standard deviation and excess return. The higher the Sharpe Ratio, the better the portfolio's historical risk-adjusted performance.

      Standard Deviation is an indicator of the portfolio's total return volatility, which is based on a minimum of 36 monthly returns. The larger the portfolio's standard deviation, the greater the portfolio's volatility.

      Tracking error is the standard deviation of a portfolio's excess returns. Excess returns are a portfolio's return minus the benchmark's annualized return.

      Treynor Ratio: Treynor Ratio is a risk adjusted measure of performance. It is the ratio of the annualized excess return of the portfolio over the risk free rate for a given period divided by the Beta of the portfolio versus its benchmark for the same period. It measures the amount of excess return over the risk free rate earned per unit of systematic risk (beta) assumed.

      Upside and downside capture is a measure of how well a manager was able to replicate or improve on phases of positive benchmark returns, and how badly the manager was affected by phases of negative benchmark returns. Upside capture ratio for a portfolio is calculated by taking the portfolio's return during periods when the benchmark had a positive return and dividing it by the benchmark return during that same period. Downside capture ratio is calculated by taking the portfolio's return during the periods of negative benchmark performance and dividing it by the benchmark return for that period.

      Updated Monthly As of 02/29/24
      Benchmark
      Bloomberg 1-3 Year U.S. Treasury Bond Index
      Performance Statistics Table
      10 Yr. 5 Yr. 3 Yr.
      Alpha 2.25 3.79 4.49
      Beta 0.68 0.72 1.55
      R-squared 3.87 5.51 36.50
      Standard Deviation % 5.11 5.95 5.59
      Sharpe Ratio 0.30 0.43 0.30
      Tracking Error 5.03 5.81 4.61
      Information Ratio 0.36 0.57 0.93
      Treynor Ratio 2.24 3.54 1.09
      Downside Capture % 82.14 75.80 89.10
      Upside Capture % 169.88 193.21 240.10

      Fund Positioning (%)

      As of 02/29/24
      Derivative Overlay Positions 1
      Active Security Selection Long Short 1,* Net Exposure
      31.66
      Europe ex-U.K. 11.78 8.73 -3.89 16.61
      U.S. Large Cap 30.58 -22.75 7.83
      Japan 4.05 0.54 4.59
      Emerging Markets 2.31 5.24 -3.68 3.88
      Asia/Pacific ex-Japan 1.52 0.87 -2.02 0.37
      North America ex-U.S. 1.94 -1.72 0.22
      Developed - Middle East/Africa 0.04 0.04
      U.S. Small/Mid Cap 18.10 -18.65 -0.55
      United Kingdom 2.59 -3.93 -1.34
      52.79
      U.S. 13.99 52.19 -11.94 54.23
      Asia/Pacific ex-Japan 0.59 7.23 7.83
      Japan 0.54 2.95 3.49
      Emerging Markets 0.40 0.40
      North America ex-U.S. 1.38 -3.67 -2.29
      United Kingdom 0.62 -4.12 -3.50
      Europe ex-U.K. 1.95 -9.32 -7.37
      2.41
      U.S. 2.15 2.15
      Non-U.S. 0.26 0.26
      Cash & Cash Equivalents 5.73
      Other3 7.41
      Total Net Exposure Summary 100.00
      1

      Market exposure of derivative position utilized to adjust fund.

      3Other. Other consists of: (i) currency derivatives and/or (ii) any derivative offsets.
      *Short positions, unlike long positions, lose value if the underlying asset gains value.

      Top 10 Holdings

      As of 02/29/24
      • USD IRS 2Yr Receiver 3.942 MAR 18 26
      • USD IRS 5Yr Receiver 3.525 MAR 21 29
      • Aud Bond 10Yr Future MAR 15 24
      • FTSE 100 Index Future MAR 15 24*
      • GB Govt Bond 10Yr Future JUN 26 24*
      • USD IRS 10Yr Payer 3.477 MAR 15 34*
      • S&P 400 Mid Cap Future MAR 15 24*
      • Euro Bund 10Yr Future MAR 07 24*
      • Russell 2000 E-Mini Future MAR 15 24*
      • S&P 500 E-Mini Future MAR 15 24*
      The portfolio is actively managed, and current holdings may be different.
      Important Characteristics Information
      The portfolio is actively managed, and current holdings may be different.

      Portfolio characteristics are based on equivalent exposure, which measures how a portfolio's value would change due to price changes in an asset held either directly or, in the case of a derivative contract, indirectly. The market value of the holding may differ.

      *Short positions, unlike long positions, lose value if the underlying asset gains value.

    • Fees

      Fees

      • 1.37 % Net Expense Ratio

        Net Expense Ratio: The Net Expense Ratio reflects the reduction of expenses from contractual fee waivers and reimbursements. Elimination of these reductions will result in higher expenses and lower performance.


        These reductions will continue until at least 02/28/25

      • 1.57 % Gross Expense Ratio

        Gross Expense Ratio: The Gross Expense Ratio is the fund's total operating expense ratio from the fund's most recent prospectus.

      • 5.75 % Maximum Sales Charge
        Class A shares ("A") results include the maximum sales charge.
    • Resources

      Resources

      Product Resources

      Full Holdings available approximately 19 or 24 days after month end.

      Product Literature

      Product Literature

      Back to bonds: Why it may be time to make the move.

      Fixed Income public brochure that illustrates why the bond window of opportunity is now open for long-term investors.

      Market Declines: A History of Recoveries

      Flyer showing market declines over time and how recoveries have played out over the long-term.

      Barron's Box Flyer

      Flyer showing MFS' annual rankings from Barron's since 2008

      2024 Dividend and Capital Gains Schedule

      The Power of Active Management brochure

      Announcements

      Announcements

      MORNINGSTAR RATINGS

      The fund's overall Morningstar Rating measures are based on risk-adjusted returns as of 02/29/24.

      The Morningstar Rating for funds, or "star rating", is calculated for funds with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

      Morningstar rankings may vary among share classes and are based on historical total returns, which are not indicative of future results. Class A share star ratings do not include any front-end sales load and are intended for those investors who have access to such purchase terms (e.g., plan participants of a defined contribution plan). Therefore, Morningstar strongly encourages investors to contact their investment professional to determine whether they are eligible to purchase the A share without paying the front load.

      This website is a general communication and is provided for informational and/or educational purposes only. None of the content should be viewed as a suggestion that you take or refrain from taking any action nor as a recommendation for any specific investment product, strategy, plan feature or other such purpose. Your use of this website indicates that you agree with the intended purpose. Prior to making any investment or financial decision, you should seek individualized advice from a personal financial, tax, and other professionals who are able to provide advice in the context of your particular financial situation.

      The information provided on this page should be read in conjunction with the fund's prospectus or summary prospectus for the portfolio being offered, which are available online here or by contacting MFS. Consider the fund's investment objectives, risks, charges, and expenses, and otherwise read these documents carefully before you invest. Shares of the funds are not FDIC-insured and are not deposits or other obligations of, or guaranteed by, any bank. Shares of the funds involve investment risk, including possible loss of principal. 

      MFS registered investment products are offered through MFS® Fund Distributors, Inc., 111 Huntington Avenue, Boston, MA 02199.
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