MFS® Managed Wealth Fund

Fund Overview

Objective

Seeks total return

Key Differentiators

  • Diversification across equity markets through established MFS alpha generating strategies
  • The fund may use derivatives to manage typical and atypical downside market moves.
  • Seeks to outpace other global long/short offerings through a full market cycle

Managers

Fund Information

MNWAXSYMBOL
$10.25 DAILY NAV AS OF 10/20/17
$23 M NET ASSETS AS OF 9/30/17
Fund Commencement
6/27/14
Class Inception
6/27/14
Net Assets ($M)
As of 9/30/17
$23.79
Maximum Sales Charge
5.75%
Net Asset Value (NAV)
As of 10/20/17
$10.25
NAV Change
$ -0.01  | -0.1%
Fiscal Year End
MAY
Fund Number
1060
Gross Expense ratio
1.66 %
Net Expense ratio
1.45 %

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, reimbursements, and the exclusion of interest and fees. Elimination of these reductions will result in higher expenses and lower performance. These reductions will continue until at least September 30, 2018.

Fund Positioning %

As of 9/30/17

 
Active Security Selection
Derivative Overlay Positions1,3

Net Exposure
 Net Equity Exposure *
 
 
19.61
Strategic Allocation
 
 
MFS Value Fund
30.65
 
MFS Institutional International Equity Fund
30.43
 
MFS Growth Fund
30.24
 
Market Exposure Overlay
 
 
Russell 1000 Value Index Future DEC 15 17*
-23.78
 
Russell 1000 Growth Index Future DEC 15 17*
-23.81
 
Mini MSCI EAFE Index Future DEC 15 17*
-24.11
 
 Downside Hedge(s)
 
 
-1.95
  Russell 2000 Index Option PUT(s)
 
 
-0.65
Russell 2000 Index Option 1200.00 PUT DEC 15 17
-0.20
 
Russell 2000 Index Option 1230.00 PUT MAR 16 18
-0.46
 
  Standard & Poors Index Option PUT(s)
 
 
-1.29
Standard & Poors Index Option 1950.00 PUT DEC 15 1
-0.12
 
Standard & Poors Index Option 2200.00 PUT JAN 19 1
-0.26
 
Standard & Poors Index Option 2375.00 PUT DEC 15 1
-0.91
 
Standard & Poors Index Option 2250.00 PUT DEC 15 1
0.40
 
 Other Market Exposure(s) *
 
 
0.40
  Standard & Poors Index Option PUT(s)
 
 
0.40
Standard & Poors Index Option 1950.00 PUT DEC 15 1
-0.12
 
Standard & Poors Index Option 2200.00 PUT JAN 19 1
-0.26
 
Standard & Poors Index Option 2375.00 PUT DEC 15 1
-0.91
 
Standard & Poors Index Option 2250.00 PUT DEC 15 1
0.40
 
Net Equivalent Equity Exposure
91.32
-73.25
18.07
Cash & Cash Equivalents
 
 
8.61
Other2
 
 
73.33
Total Net Exposure Summary
100.00

1 Market exposure of derivative position utilized to adjust fund.

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

3 Positions with negative signs will rise with falling markets. Losses on long put options are limited to the premium paid.

Average Annual Total Returns % Details

These results represent the percent change in net asset value.

As of 9/30/17 (YTD Updated Daily, as of 10/20/17) As of 9/30/17
 

*YTD Updated Daily as of 10/20/17, 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 9/30/17

MORNINGSTAR CATEGORY:

Long-Short Equity

Overall

Out of   198   funds

3 Yr.

Out of   198   funds

5 Yr.

N/A

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.

  • 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.

  • 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.

  • The fund’s strategy to reduce its exposure to the equity and/or currency markets represented by the underlying funds and to potentially expose the fund to asset classes and/or markets in which the underlying funds have little or no exposure may not produce the intended results. In addition, the strategies MFS may implement to limit the fund’s exposure to certain extreme market events may not work as intended, and the costs associated with such strategies will reduce the fund’s returns. It is expected that the fund will generally underperform the equity markets during periods of strong, rising equity markets.

  • 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.

  • 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.


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