MFS® Global Alternative Strategy Fund

Fund Overview

Objective

Seeks total return

Key Differentiators

  • Seeks to generate consistent returns over time by managing market, currency, and active security selection risk/return separately
  • The fund uses an unconstrained benchmark approach, seeking lower correlation to traditional equity and fixed income markets and lower volatility relative to the broader equity market. Through this, the fund seeks to achieve more consistent returns through individual security selection, long/short market allocation, and active currency management
  • Goal total return that meets or exceeds 2 - 4% over the Citigroup 1-Month T-Bill Index (net of fund expenses), over a full market cycle, with less reliance on favorable market conditions

Managers

Fund Information

DVRAXSYMBOL
$10.69 DAILY NAV AS OF 7/6/15
$609 M NET ASSETS AS OF 5/31/15
Fund Commencement
12/20/07
Class Inception
12/20/07
Net Assets ($M)
As of 5/31/15
$609.41
Maximum Sales Charge
5.75%
Net Asset Value (NAV)
As of 7/6/15
$10.69
NAV Change
$ -0.06  | -0.56%
Fiscal Year End
OCTOBER
Fund Number
1041
Gross Expense ratio
1.47 %
Net Expense ratio
1.40 %

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 29, 2016.

Top 10 Holdings Details

As of 5/31/15

CDX IG 24 1.000 JUN 20 20
DJ Euro Stoxx 50 Future JUN 19 15
GBP IRS 10Yr Receiver 1.980 MAY 15 25
Euro BTP IT Bond Future JUN 08 15
TOPIX Index Future JUN 11 15
OMXS30 Index Future JUN 18 15*
S&P 400 Mid Cap Future JUN 19 15*
Russell 2000 E-Mini Future JUN 19 15*
UST Bond 5Yr Future SEP 30 15*
S&P 500 Future JUN 18 15*

52.94% long and 51.85% short (*) positions of total net assets

Total number of holdings: 994

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 6/30/15 (YTD Updated Daily, as of 7/6/15) As of 6/30/15
 

*YTD Updated Daily as of 7/6/15, 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 5/31/15

MORNINGSTAR CATEGORY:

Multialternative

 

Overall

Out of   215   funds

3 Yr.

Out of   215   funds

5 Yr.

Out of   140   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.

Subadvised by UBS Global Asset Management (Americas), Inc.

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 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 rate environments as the underlying debt instruments in the portfolio adjust to the rise in 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, 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.

  • Investments in lower-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 strategy to separate security selection decisions from market and currency exposure decisions may not produce the intended results. It is expected that the fund will generally under-perform the equity markets during strong, rising equity markets.

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

Product Insights

Morningstar Disclosure

For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. Within each asset class, the top 10%, the next 22.5%, 35%, 22.5%, and the bottom 10% receive 5, 4, 3, 2, or 1 star, respectively. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Each fund is rated exclusively against U.S. domiciled funds. The Overall Morningstar Rating™ is based on the weighted average of the number of stars assigned to the fund's applicable time periods. In cases where the fund has changed investment categories, its historical information is given less weight. If the fund has been in existence at least 10 years, the 10-year rating accounts for 50%, the 5-year for 30%, and the 3-year for 20%. If the fund has been in existence at least 5 years, but less than 10 years, the 5-year rating accounts for 60% and the 3-year for 40%. If the fund has been in existence for 3 years, but less than 5 years, the 3-year rating accounts for 100%.

Morningstar rankings may vary among share classes and are based on historical total returns, which are not indicative of future results.

Load-waived (LW) 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.) Not all A share mutual funds for which Morningstar calculates a load-waived A share star rating may actually waive their front-end sales load. 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.