MFS® Municipal Limited Maturity Fund

Fund Overview

Objective

Seeks total return with an emphasis on income exempt from federal income tax, but also considering capital preservation.

Key Differentiators

  • Conservative tax exempt fund with average maturity of five years or less
  • Performance sought from sector/security selection and yield curve analysis
  • Research oriented

Managers

Fund Information

MTLFXSYMBOL
$8.04 DAILY NAV AS OF 1/20/17
$1.6 B NET ASSETS AS OF 12/31/16
Fund Commencement
3/17/92
Class Inception
3/17/92
Net Assets ($M)
As of 12/31/16
$1,618.69
Maximum Sales Charge
2.5%
Net Asset Value (NAV)
As of 1/20/17
$8.04
NAV Change
$ -0.01  | -0.12%
Fiscal Year End
APRIL
Fund Number
37
Average Effective Duration
As of 12/31/16
3.09 yrs
Average Effective Maturity
As of 12/31/16
4.41 yrs
Gross Expense ratio
0.80 %
Net Expense ratio
0.70 %

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 August 31, 2017.

Top 10 Holdings Details

As of 12/31/16

Mission Economic Development Corp TX Var-Republic Svcs Inc-Ser A 0.300 JAN 01 20
Virginia Public Building Authority VA Ref-Ser B 5.000 AUG 01 24
City of New York NY NY Ser I 5.000 AUG 01 22
Tobacco Settlement Financing Corp Ser 1A 4.500 JUN 01 23
County of Cook IL Ref-Ser C-Agm-Cr AGM 5.000 NOV 15 25
Commonwealth of Pennsylvania PA Ref-1St Ser-Agm-Cr 5.000 SEP 15 25
NM Municipal Energy Acquisition Authority Variable-Ref-Sub-Ser A NOV 01 39
State of MD First Ser B 5.000 MAR 15 17
State of HI Ser Ee 5.000 NOV 01 20
CA Housing Finance Agency Amt-Home Mtg-Ser G 4.950 AUG 01 23

6.81% of total net assets

Total number of holdings: 794

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 12/31/16 (YTD Updated Daily, as of 1/20/17) As of 12/31/16
 

*YTD Updated Daily as of 1/20/17, 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 12/31/16

MORNINGSTAR CATEGORY:

Muni National Short

Overall

Out of   172   funds

3 Yr.

Out of   172   funds

5 Yr.

Out of   147   funds

10 Yr.

Out of   94   funds

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.

Dividends are generally subject to state and local taxes. For investors subject to the alternative minimum tax, a small portion of dividend income may be taxable. Capital gains distributions, if any, are taxable.

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 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 municipal instruments can be volatile and significantly affected by adverse tax or court rulings, legislative or political changes, market and economic conditions, issuer, industry-specific (including the credit quality of municipal insurers), and other conditions.

  • The fund’s performance could be closely tied to the economic, political, and other conditions in the states and U.S. territories and possessions in which the fund invests and could be more volatile than the performance of more geographically diversified funds.

  • 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.

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.