6 9

Lifetime® 2040 Fund

MLFAX
$ 18.95
$0.05 As of 03/18/24
$759M
As of 02/29/24
Morningstar
View Overall Morningstar Ratings Information

Lifetime® 2040 Fund

MLFAX
$0.05 As of 03/18/24
As of 02/29/24
MLFAX
$ 18.95
$0.05 As of 03/18/24
$759M
As of 02/29/24
Morningstar
View Overall Morningstar Ratings Information
  • Overview

    INVESTMENT OBJECTIVE

    Seeks a high level of total return consistent with its asset allocation until the approximate retirement year in the fund's name; thereafter, the fund will seek total return through a combination of current income and capital appreciation. The asset allocation of the fund will change over time.

    INVESTMENT FOCUS

    Disciplined, active risk management of both underlying and target date funds

    Progressive glide path which pursues asset growth in early years and seeks to mitigate risk in later years

    Provides convenient access to a professionally allocated, broadly diversified, rebalanced portfolio of MFS funds in a single investment which will become more conservative as the fund's target date approaches

    Fund Information

    • Fund Commencement 09/29/05
    • Net Assets ($ M) As of 02/29/24 $759.88
    • Fiscal Year End APRIL
    • Benchmark

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

      Standard & Poor's 500 Stock Index

    Share Class Information

    • Class Inception 09/29/05
    • Net Asset Value (NAV) As of 03/18/24 $18.95
    • Most Recent NAV Change As of 03/18/24 $0.05 | 0.26%
    • Fund Number 1038
    • 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.

      1.03%
    • 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 08/31/24

      0.82%

    MANAGERS

    Top 10 Holdings

    • Microsoft Corp
    • NVIDIA Corp
    • Apple Inc
    • Amazon.com Inc
    • Meta Platforms Inc
    • Alphabet Inc Class A
    • US Treasury Inflation Indexed Bonds 0.875% JAN 15 29
    • MLCILPRT TR Swap OCT 18 24
    • JPMorgan Chase & Co
    • ProLogis REIT

    Important Risk Considerations

    The fund may not achieve its objective and/or you could lose money on your investment in the fund. You may experience losses near, at, or after the target date. There is no guarantee of the fund's principal value, including at the target date, or that the fund will provide adequate income at and through your retirement.

    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.

    Underlying Funds: MFS' strategy of investing in underlying funds exposes the fund to the risks of the underlying funds. Each underlying fund pursues its own objective and strategies and may not achieve its objective.  In addition, shareholders of the fund will indirectly bear the fees and expenses of the underlying funds.

    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 03/18/24 , 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 Target-Date 2040

      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 Target-Date 2040

      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

      Annual Rate of Return (%)

      As of 12/31/23 | Benchmark: Standard & Poor's 500 Stock Index
      annual rate of return table
      2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
      At NAV 3.75 -0.13 8.73 20.47 -7.82 25.86 12.88 18.59 -15.48 16.01
      With Sales Charge -2.21 -5.87 2.48 13.54 -13.12 18.63 6.39 11.77 -20.34 9.34
      Standard & Poor's 500 Stock Index 13.69 1.38 11.96 21.83 -4.38 31.49 18.40 28.71 -18.11 26.29
      At NAV With Sales Charge Standard & Poor's 500 Stock Index
      2023 16.01 9.34 26.29
      2022 -15.48 -20.34 -18.11
      2021 18.59 11.77 28.71
      2020 12.88 6.39 18.4
      2019 25.86 18.63 31.49
      2018 -7.82 -13.12 -4.38
      2017 20.47 13.54 21.83
      2016 8.73 2.48 11.96
      2015 -0.13 -5.87 1.38
      2014 3.75 -2.21 13.69
      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 03/19/24

      Record Date Ex-Date Payable Date Type of Earnings Rate per Share (US$) Reinvestment NAV (US$)
      12/26/23 12/27/23 12/28/23 Long Term Capital Gain 0.29839 18.12
      12/26/23 12/27/23 12/28/23 Dividend 0.31100 18.12
      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.

      Sector, Holding & Characterstics

      Largest Sector Weights of Equity Assets

      As of 02/29/24

      The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and S&P Global Market Intelligence Inc. ("S&P Global Market Intelligence"). GICS is a service mark of MSCI and S&P Global Market Intelligence and has been licensed for use by MFS. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS.

      Map represents sectors greater than 5%.

      Holding Characteristics
      Average Coupon: Average Coupon is the equivalent exposure weighted coupon of all interest bearing instruments as a percent of the total equivalent exposure of all fixed income holdings, including short term and interest rate derivatives which have coupons. Coupons are netted for securities with a payable and receivable leg. Non-accruing securities are treated as having a coupon equal to zero.

      Average Effective Duration is a measure of how much a bond's price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value.

      Average Effective Maturity is a weighted average of maturity of the bonds held in a portfolio, taking into account any prepayments, puts, and adjustable coupons which may shorten the maturity. Longer-maturity funds are generally considered more interest-rate sensitive than shorter maturity funds.

      Weighted average yield-to-worst of all portfolio holdings excluding cash & derivatives. Yield-to-worst is the annual estimate of the portfolio yield considering factors such as call provisions, prepayments, and other features that may affect a bond's cash flow; and assumes no default. It is an estimated characteristic at a point in time and is not a measure of portfolio performance.

      Weighted average price/earnings (P/E) ratio is the ratio of the current price of a stock to an estimate of forward 12 month earnings; P/E ex-negatives ratio is an exposure-weighted average of the P/E ratios of the securities held, excluding companies with projected negative earnings.

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

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

      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 will grow over the long-term (typically 3-5 years). The forecast is derived from all polled analysts' estimates. Source FactSet. 

      Weighted Average Market Cap: Market capitalization is the value of a corporation as determined by the market price of its issued and outstanding common stock. It is calculated by multiplying the number of outstanding shares by the current market price of a share.

      Weighted Median Market Cap: 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.

      As of 02/29/24
      Data table of holding characteristics
      characterstics Equity Earning
      Weighted Average Price/Earnings (next 12 months) 16.90x
      Weighted Average Price/Cash Flow 13.49x
      Weighted Average Price/Sales 1.70x
      Weighted Average Price/Book 2.66x
      Weighted Average IBES Long Term EPS Growth 12.10%
      Weighted Average Market Cap $289.8b
      Weighted Median Market Cap $40.8b
      Number of Issues 1384
      % in Stocks 76.08%
      % Cash & Cash Equivalents 5.01%
      % Other1 -6.95%
      % in Top Ten 12.27%

      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
      Standard & Poor's 500 Stock Index
      Performance Statistics Table
      10 Yr. 5 Yr. 3 Yr.
      Alpha -2.64 -3.07 -3.85
      Beta 0.83 0.84 0.82
      R-squared 94.10 94.90 94.37
      Standard Deviation % 13.02 15.73 14.88
      Sharpe Ratio 0.49 0.45 0.21
      Tracking Error 4.04 4.67 4.77
      Information Ratio -1.23 -1.24 -1.31
      Treynor Ratio 7.70 8.40 3.85
      Downside Capture % 90.20 88.54 89.34
      Upside Capture % 77.39 77.32 74.56

      Top 10 Holdings

      As of 02/29/24
      • Microsoft Corp
      • NVIDIA Corp
      • Apple Inc
      • Amazon.com Inc
      • Meta Platforms Inc
      • Alphabet Inc Class A
      • US Treasury Inflation Indexed Bonds 0.875% JAN 15 29
      • MLCILPRT TR Swap OCT 18 24
      • JPMorgan Chase & Co
      • ProLogis REIT

      Top 10 Equity Holdings

      As of 02/29/24
      • Microsoft Corp
      • NVIDIA Corp
      • Apple Inc
      • Amazon.com Inc
      • Meta Platforms Inc
      • Alphabet Inc Class A
      • JPMorgan Chase & Co
      • ProLogis REIT
      • McKesson Corp
      • Schneider Electric SE

      Top 10 Fixed Income Holdings

      As of 02/29/24
      • US Treasury Inflation Indexed Bonds 0.875% JAN 15 29
      • US Treasury Inflation Indexed Bonds 0.125% JAN 15 32
      • USD IRS 2Yr Receiver 3.412 JUN 18 27
      • US Treasury Inflation Indexed Bonds 0.125% JUL 15 30
      • US Treasury Inflation Indexed Bonds 0.125% JAN 15 31
      • US Treasury Inflation Indexed Bonds 0.625% JAN 15 26
      • US Treasury Note 4.625% NOV 15 26
      • UST Bond 5Yr Future JUN 28 24
      • US Treasury Inflation Indexed Bonds 0.75% FEB 15 42
      • UST Bond 2Yr Future JUN 28 24

      Sector Weights (%)

      As of 02/29/24
      •  % of Equity Assets
      • Information Technology
        18.01
      • Financials
        15.04
      • Industrials
        14.61
      • Health Care
        11.18
      • Consumer Discretionary
        9.35
      • Real Estate
        7.74
      • Communication Services
        5.61
      • Materials
        5.30
      • Consumer Staples
        5.06
      • Energy
        4.17
      • Utilities
        2.97
      • Mutual Funds
        0.97
      • Convertible Debt
        0.01
      • Equity Warrants
        0.00
      • Index Options*
        -0.01
      • Equity Options*
        -0.01

      The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and S&P Global Market Intelligence Inc. ("S&P Global Market Intelligence"). GICS is a service mark of MSCI and S&P Global Market Intelligence and has been licensed for use by MFS. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS.

      Exposures

      Target Allocations (%)

      As of 02/29/24

      Credit Quality (%)

      For all securities other than those described below, ratings are assigned utilizing ratings from Moody’s, Fitch, and Standard & Poor’s and applying the following hierarchy: If all three agencies provide a rating, the consensus rating is assigned if applicable or the middle rating if not; if two of the three agencies rate a security, the lower of the two is assigned. If none of the 3 Rating Agencies above assign a rating, but the security is rated by DBRS Morningstar, then the DBRS Morningstar rating is assigned. If none of the 4 rating agencies listed above rate the security, but the security is rated by the Kroll Bond Rating Agency (KBRA), then the KBRA rating is assigned. Other Not Rated includes other fixed income securities not rated by any rating agency. Ratings are shown in the S&P and Fitch scale (e.g., AAA). All ratings are subject to change. The portfolio itself has not been rated by any rating agency. The credit quality of a particular security or group of securities does not ensure the stability or safety of an overall portfolio. The quality ratings of individual issues/issuers are provided to indicate the credit-worthiness of such issues/issuer and generally range from AAA, Aaa, or AAA (highest) to D, C, or D (lowest) for S&P, Moody’s, and Fitch respectively.

      As of 02/29/24
      • % of Fixed Income Assets
      • U.S. Government
        27.07
      • Federal Agencies
        3.77
      • AAA
        3.27
      • AA
        3.62
      • A
        7.46
      • BBB
        15.67
      • BB
        12.49
      • B
        8.39
      • CCC
        2.82
      • CC
        0.10
      • C
        0.05
      • D
        0.22
      • Other Not Rated
        15.07
      Represents the fixed income exposure generated by the underlying bond funds and MFS Commodity Strategy Fund.
      Region & Country

      Region & Country

      As of 02/29/24
      Region & Country Table
      Region & Country % Equity Assets
      North America
      3 Countries
      71.02
      Europe ex-U.K.
      15 Countries
      11.15
      Emerging Markets
      23 Countries
      7.23
      Japan
      1 Countries
      4.95
      United Kingdom
      1 Countries
      3.35
      Asia/Pacific ex-Japan
      4 Countries
      2.10
      Developed - Middle East/Africa
      1 Countries
      0.18
      Cash & Cash Equivalents
      1 Countries
      0.00
      By Country Table
      By Country
      Important Characteristics Information
      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.

      1Other. Other consists of: (i) currency derivatives and/or (ii) any derivative offsets.

    • Fees

      Fees

      • 0.82 % 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 08/31/24

      • 1.03 % 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 Resources

      Product Literature

      Product Literature

      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

      MFD All Star Flyer I

      See the results of our collaborative approach for MFS' "All Star" portfolios.

      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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