MFS® Equity Income Fund

US Equity | EQNAX
Without Waiver 1.69 %
With Waiver 1.85 %
$ 16.19
$0.07 As of 12/14/17
$199M
As of 11/30/17
Morningstar
View Overall Morningstar Ratings Information

MFS® Equity Income Fund

US Equity
EQNAX
$0.07 As of 12/14/17
As of 11/30/17
US Equity | EQNAX
$ 16.19
$0.07 As of 12/14/17
$199M
As of 11/30/17
Morningstar
View Overall Morningstar Ratings Information
INVESTMENT OBJECTIVE

The fund's investment objective is to seek total return through a combination of current income and capital appreciation.

INVESTMENT FOCUS

Focuses on companies with high relative dividend yields and/or long-term capital appreciation potential

Blends fundamental first-hand research of each security and quantitative data analysis of over 5,000 securities in order to determine whether a stock’s valuation properly reflects a company’s growth and return prospects as well as its risks

Fund Information

Fund Commencement
09/27/12
Net Assets ($ M)
As of 11/30/17
$199.38
Fiscal Year End
JULY
Benchmark

Standard & Poor's 500 Stock Index measures the broad U.S. stock market.

Standard & Poor's 500 Stock Index

Top 10 Holdings

As of 11/30/17
  • Facebook Inc
  • Cisco Systems Inc
  • Bank of America Corp
  • Philip Morris International Inc
  • Comcast Corp
  • Union Pacific Corp
  • Eli Lilly & Co
  • Altria Group Inc
  • DXC Technology Co
  • Exelon Corp
MANAGERS

Important Risk Considerations

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

Stock markets and investments in individual stocks are volatile and can decline significantly in response to issuer, market, economic, industry, political, regulatory, geopolitical, and other conditions.

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.

Real estate-related investments can be volatile because of general, regional, and local economic conditions, fluctuations in interest rates and property tax rates; shifts in zoning laws, environmental regulation and other governmental actions; increased operation expenses; lack of availability of mortgage funds; losses due to natural disasters; changes in property values and rental rates; overbuilding; losses due to casualty or condemnation, cash flows; and other factors.

The fund'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.

MFS' investment analysis, its development and use of quantitative models, and its selection of investments may not produce the intended results and/or can lead to an investment focus that results in the fund underperforming other funds with similar investment strategies and/or underperforming the markets in which the fund invests. Investments selected using quantitative models may not produce the intended results due to the factors used in the models, the weight placed on each factor in the models, changing sources of market return, and technical issues in the design, development, implementation, and maintenance of the models (e.g., incomplete or inaccurate data, programming or other software issues, and technology failures).

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

Performance

Collapse Expand
Average Annual Total Returns %

Average Annual Total Returns %

These results represent the percent change in net asset value.
Monthly | Quarterly As of 09/30/17 (*YTD Updated Daily, As of 12/13/17 , 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 11/30/17 Class A Shares

    Morningstar Large Value

    Morningstar ratings are based on risk adjusted performance.

    OVERALL
    Out Of Funds
    NA
    OVERALL MORNINGSTAR RATING
    Morningstar Overall Rating As of 11/30/17 Class A Shares

    Morningstar Large Value

    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.

    Sales Charges

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

    Annual Rate of Return %
    Pricing & Distributions

    Portfolio & Holdings Information

    Portfolio characteristic data are based on unaudited net assets.

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

    Collapse Expand
    Sector, Holding & Characterstics

    Sectors, Holdings & Characteristics

    Largest Sector Weights

    As of 11/30/17
    Map represents sectors greater than 5%.

    Holding Characteristics

    Weighted Average IBES Long Term EPS Growth: The weighted average forecast, by sell side analysts of how much a company’s net income has grown over the long-term (typically 3-5 years).  The forecast is derived from all polled analysts' estimates. Source: Ibbotson 

    Weighted Average Price/Earnings (next 12 months): Price/earnings ratio (P/E) is the price of a stock divided by its earnings per share.

    Weighted Average Price-to-cash-flow is the ratio of a stock's price to its per-share cash earnings.

    Weighted Average Price/Sales: Price/Sales Ratio (P/S) is the ratio of a stock's price to its per-share sales.

    Weighted Average Price/Book: Price/book ratio (P/B) is the ratio of a stock's price to its book value per share.

    Weighted Average IBES Long Term EPS Growth is the weighted average forecast, by sell side analysts of how much a company’s net income has grown over the long-term (typically 3-5 years).  The forecast is derived from all polled analysts' estimates. Source: Ibbotson

    Weighted Median Market Cap is the Market Capitalization of the firm defined by the median dollar within the distribution of the market capitalization of all companies in the index or portfolio. It is calculated from a running total of market capitalizations from smallest company to largest. The Market Capitalization of the firm that sorts the total dollar value of all market capitalizations into two equal portions defines the value.

    Holding Based Portfolio - Equity Level Data
    As of 11/30/17
    Weighted Average Price/Earnings (next 12 months) 15.20x
    Weighted Average Price/Cash Flow 11.13x
    Weighted Average Price/Sales 1.45x
    Weighted Average Price/Book 2.18x
    Weighted Average IBES Long Term EPS Growth 11.92%
    Weighted Average Market Cap $132.3b
    Weighted Median Market Cap $84.8b
    # of Stock Holdings 93
    % in Stocks 99.08%
    % Cash & Cash Equivalents 0.92%
    % in Top Ten 26.41%

    Performance Statistics

    Alpha: 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 alpha worse-than-expected portfolio performance.

    Beta: 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: Information ratio is a measure of consistency in excess return. The annualized excess return over a benchmark divided by the annualized standard deviation of excess return.

    R-squared: R2 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.

    Sharpe Ratio: 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: 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: Tracking error is the active risk of the portfolio that measures the dispersion of the portfolio's return minus the benchmark's annualized return.

    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 / Downside Capture %: The 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. To calculate the up capture, we first form new series from the manager and benchmark series by dropping all time periods where the benchmark return is zero or negative. The up capture is then the quotient of the annualized return of the resulting manager series, divided by the annualized return of the resulting benchmark series. The down capture is calculated analogously.

    Updated Monthly As of 11/30/17
    3 Yr. 5 Yr. 10 Yr.
    Alpha -1.54 -1.21 n/a
    Beta 0.91 0.92 n/a
    R-squared 93.68 92.50 n/a
    Standard Deviation % 9.53 9.08 n/a
    Sharpe Ratio 0.83 1.41 n/a
    Tracking Error 2.55 2.60 n/a
    Information Ratio -1.04 -1.04 n/a
    Upside Capture % 88.32 89.82 n/a
    Downside Capture % 103.45 102.74 n/a
    Treynor Ratio 8.70 13.95 n/a
    Performance-based characteristics are only calculated for Class A shares at NAV.

    Top 10 Holdings

    As of 11/30/17
    • Facebook Inc
    • Cisco Systems Inc
    • Bank of America Corp
    • Philip Morris International Inc
    • Comcast Corp
    • Union Pacific Corp
    • Eli Lilly & Co
    • Altria Group Inc
    • DXC Technology Co
    • Exelon Corp

    Type Of Holdings %

    As of 11/30/17

    Sector Weights %

    As of 11/30/17
    •  % Assets
    • Financial Services
      21.20
    • Technology
      16.33
    • Health Care
      12.60
    • Consumer Staples
      9.39
    • Utilities & Communications
      9.06
    • Industrial Goods & Services
      5.55
    • Leisure
      5.23
    • Retailing
      4.42
    • Autos & Housing
      4.13
    • Special Products & Services
      3.41
    • Energy
      3.39
    • Transportation
      3.01
    • Basic Materials
      1.37
    • Cash & Cash Equivalents
      0.92
    Region & Country
    Important Characteristics Information
    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.

    Fees

    • 0.89 % Net Expense Ratio

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


      These reductions will continue until at least 11/30/18

    • 1.07 % 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

    Facts & Overview

    News & Announcements

    Insightful Investing

    • November 3, 2017

      Updated As of October 9, 2017

    • One of the "Best Mutual Fund Families"

      Updated As of February 12, 2017

    MORNINGSTAR RATINGS

    The fund's overall Morningstar Rating measures are based on risk-adjusted returns as of 10/31/17.

    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.

    This publication is authorized for distribution only when preceded or accompanied by a prospectus, or summary prospectus, for the portfolio being offered. Consider the fund's investment objectives, risks, charges and expenses. Contact MFS or view online. Read it carefully.

    • Overview
      INVESTMENT OBJECTIVE

      The fund's investment objective is to seek total return through a combination of current income and capital appreciation.

      INVESTMENT FOCUS

      Focuses on companies with high relative dividend yields and/or long-term capital appreciation potential

      Blends fundamental first-hand research of each security and quantitative data analysis of over 5,000 securities in order to determine whether a stock’s valuation properly reflects a company’s growth and return prospects as well as its risks

      Fund Information

      Fund Commencement
      09/27/12
      Net Assets ($ M)
      As of 11/30/17
      $199.38
      Fiscal Year End
      JULY
      Benchmark

      Standard & Poor's 500 Stock Index measures the broad U.S. stock market.

      Standard & Poor's 500 Stock Index

      Top 10 Holdings

      As of 11/30/17
      • Facebook Inc
      • Cisco Systems Inc
      • Bank of America Corp
      • Philip Morris International Inc
      • Comcast Corp
      • Union Pacific Corp
      • Eli Lilly & Co
      • Altria Group Inc
      • DXC Technology Co
      • Exelon Corp
      MANAGERS

      Important Risk Considerations

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

      Stock markets and investments in individual stocks are volatile and can decline significantly in response to issuer, market, economic, industry, political, regulatory, geopolitical, and other conditions.

      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.

      Real estate-related investments can be volatile because of general, regional, and local economic conditions, fluctuations in interest rates and property tax rates; shifts in zoning laws, environmental regulation and other governmental actions; increased operation expenses; lack of availability of mortgage funds; losses due to natural disasters; changes in property values and rental rates; overbuilding; losses due to casualty or condemnation, cash flows; and other factors.

      The fund'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.

      MFS' investment analysis, its development and use of quantitative models, and its selection of investments may not produce the intended results and/or can lead to an investment focus that results in the fund underperforming other funds with similar investment strategies and/or underperforming the markets in which the fund invests. Investments selected using quantitative models may not produce the intended results due to the factors used in the models, the weight placed on each factor in the models, changing sources of market return, and technical issues in the design, development, implementation, and maintenance of the models (e.g., incomplete or inaccurate data, programming or other software issues, and technology failures).

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

    • Insights
    • Performance