MFS® Emerging Markets Debt Fund

Fund Overview


Seeks total return with an emphasis on high current income, but also considering capital appreciation.

Key Differentiators

  • Focuses primarily on sovereign/quasi-sovereign U.S dollar-denominated emerging markets debt
  • Research-intensive approach focuses on outperformance through alpha, with an emphasis on managing downside risk
  • Strong risk-adjusted performance allows for a focus on risk-adjusted returns and a consistently favorable information ratio


Fund Information

$14.09 DAILY NAV AS OF 10/6/15
$4.4 B NET ASSETS AS OF 8/31/15
Fund Commencement
Class Inception
Net Assets ($M)
As of 8/31/15
Maximum Sales Charge
Net Asset Value (NAV)
As of 10/6/15
NAV Change
$ 0.07  | 0.5%
Fiscal Year End
Fund Number
Average Effective Duration
As of 8/31/15
5.97 yrs
Average Effective Maturity
As of 8/31/15
10.66 yrs
Gross Expense ratio
1.12 %
Net Expense ratio
1.09 %

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 November 30, 2015.

Top 10 Holdings Details

As of 8/31/15

Mexico Government International Bond 3.625% MAR 15 22
Mexico Government International Bond 4% OCT 02 23
Russian Foreign Bond - Eurobond RegS 4.5% APR 04 22
Russian Foreign Bond - Eurobond RegS 4.875% SEP 16 23
Hungary Government International Bond 5.375% FEB 21 23
Indonesia Government International Bond 144A 4.875% MAY 05 21
Development Bank of Kazakhstan JSC RegS 4.125% DEC 10 22
Venezuela Government International Bond RegS 7% MAR 31 38
Mexico Government International Bond 3.6% JAN 30 25
Uruguay Government International Bond 4.5% AUG 14 24

12.11% of total net assets

Total number of holdings: 406

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 9/30/15 (YTD Updated Daily, as of 10/5/15) As of 9/30/15

*YTD Updated Daily as of 10/5/15, 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 8/31/15


Emerging Markets Bond



Out of   247   funds

3 Yr.

Out of   247   funds

5 Yr.

Out of   128   funds

10 Yr.

Out of   47   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.

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 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.

  • 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 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 performance could be more volatile than the performance of more diversified funds.

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

Product Insights


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

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.