MFS® Inflation-Adjusted Bond Fund

Fund Overview

Objective

Seeks total return that exceeds the rate of inflation over the long-term with an emphasis on current income, but also considering capital appreciation.

Key Differentiators

  • Invests in inflation-protected U.S. Treasury securities and government agencies as well as other entities
  • Looks to add value through duration and yield curve management

Managers

Fund Information

MIAAXSYMBOL
$10.50 DAILY NAV AS OF 4/29/16
$1.2 B NET ASSETS AS OF 3/31/16
Fund Commencement
9/30/03
Class Inception
9/30/03
Net Assets ($M)
As of 3/31/16
$1,228.59
Maximum Sales Charge
4.25%
Net Asset Value (NAV)
As of 4/29/16
$10.50
NAV Change
$ 0.03  | 0.29%
Fiscal Year End
OCTOBER
Fund Number
1031
Average Effective Duration
As of 3/31/16
4.71 yrs
Average Effective Maturity
As of 3/31/16
8.90 yrs
Gross Expense ratio
1.02 %
Net Expense ratio
0.80 %

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. These reductions will continue until at least February 28, 2017.

Top 10 Holdings Details

As of 3/31/16

US Treasury Inflation Indexed Bonds 0.625% JAN 15 24
US Treasury Inflation Indexed Bonds 0.125% APR 15 18
US Treasury Inflation Indexed Bonds 0.375% JUL 15 23
US Treasury Inflation Indexed Bonds 1.125% JAN 15 21
US Treasury Inflation Indexed Bonds 0.125% JAN 15 23
US Treasury Inflation Indexed Bonds 0.125% JUL 15 22
US Treasury Inflation Indexed Bonds 1.25% JUL 15 20
US Treasury Inflation Indexed Bonds 0.125% JUL 15 24
US Treasury Inflation Indexed Bonds 2.375% JAN 15 25
UST Bond 10Yr Future JUN 21 16*

43.37% long and 4.42% short (*) positions of total net assets

Total number of holdings: 37

Full and Historical Holdings

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

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

Average Annual Total Returns % Details

These results represent the percent change in net asset value.

As of 3/31/16 (YTD Updated Daily, as of 4/30/16) As of 3/31/16
 

*YTD Updated Daily as of 4/30/16, 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.

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.

  • 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.

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

  • Interest payments on inflation-adjusted debt instruments can be unpredictable and vary based on the level of inflation.

  • U.S. government securities not supported as to the payment of principal or interest by the U.S. Treasury are subject to greater credit risk than are U.S. government securities supported by the U.S. Treasury.

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

Product Insights

Definitions

Average Effective Duration: 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: 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.

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.