MFS® Commodity Strategy Fund

Commodity Strategy Fund is not available for direct purchase.

Fund Overview

Objective

Seeks total return.

Key Differentiators

  • Provides broad exposure to the commodities markets
  • Invests in commodity-linked instruments and debt securities

Managers

Fund Information

MCSAXSYMBOL
$5.48 DAILY NAV AS OF 6/23/17
$551 M NET ASSETS AS OF 5/31/17
Fund Commencement
6/1/10
Class Inception
6/2/10
Net Assets ($M)
As of 5/31/17
$551.16
Maximum Sales Charge
5.75%
Net Asset Value (NAV)
As of 6/23/17
$5.48
NAV Change
$ 0.01  | 0.18%
Fiscal Year End
OCTOBER
Fund Number
1042
Average Effective Duration
As of 5/31/17
1.77 yrs
Average Effective Maturity
As of 5/31/17
2.67 yrs
Gross Expense ratio
1.08 %
Net Expense ratio
1.08 %

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

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.

Top 10 Holdings Details

As of 5/31/17

Mlcilprt Total Return ETRS JUN 15 18
Ust Bond 2yr Future Sep 29 17
Bloomberg Commodity Total Return Swap
Bloomberg Commodity Index Total Return
Bloomberg Commodity F3 TR Etrs JAN 10 18
Bloomberg Commodity Total Return Swap
Mlcilprt Total Return Etrs APR 09 18
Mlcilprt Total Return Etrs APR 10 18
US Treasury Note 1.875% FEB 28 22
Bbg Commodity F3 Tr Etrs OCT 31 17

72.84% of total net assets

Total number of holdings: 404

Full and Historical Holdings

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

Average Annual Total Returns % Details

These results represent the percent change in net asset value.

As of 5/31/17 (YTD Updated Daily, as of 6/23/17) As of 3/31/17
 

*YTD Updated Daily as of 6/23/17, 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.

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™ Details

As of 5/31/17

MORNINGSTAR CATEGORY:

Commodities Broad Basket

Overall

Out of   112   funds

3 Yr.

Out of   112   funds

5 Yr.

Out of   74   funds

10 Yr.

N/A

Morningstar ratings are based on risk adjusted performance.

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.

Important Risk Considerations

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

  • Investments in debt instruments may decline in value as the result 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 Fund's share price may decline during rising rates. Funds 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.

  • 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.

  • Emerging markets can have less market structure, depth, and regulatory, custodial or operational oversight and greater political, social, and economic instability than developed markets.

  • 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.

  • Investments in below investment grade quality debt instruments can be more volatile and have greater risk of default, or already be in default, than higher-quality debt instruments.

  • The fund's performance could be more volatile than the performance of more diversified funds.

  • Commodity-related investments can be more volatile than investments in equity securities or debt instruments and can be affected by changes in overall market movements, commodity index volatility, changes in interest rates, factors affecting a particular industry or commodity, and demand/supply imbalances in the market for the commodity. Events that affect the financial services sector may have a significant adverse effect on the fund.

  • The Fund may also invest up to 25% of the fund's assets in MFS Commodity Strategy Portfolio, a wholly-owned and controlled subsidiary organized in the Cayman Islands (the "Subsidiary"). The Subsidiary is not registered as an investment company under the Investment Company Act of 1940 (the Act) and is not subject to all of the investor protections of the Act. Changes in the laws impacting the fund or the Subsidiary could negatively affect the fund and its shareholders. By investing in the Subsidiary, the fund is exposed to the risks associated with the Subsidiary's investments, including the risks associated with the additional use of leverage and derivatives.

  • MFS' assessment of the risk/return potential of commodity sectors and the resulting allocation among commodity sectors 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.

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

Product Insights

Morningstar Disclosure

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 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.