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MFS® Government Securities Fund

       
   
   
   

Fact Sheet

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Symbol: MFGSX   CUSIP:  552982100   Newspaper Abbreviation: GvScA   Fund number: 26  
Daily NAV:  $10.04  (as of 4/16/14)
    Characteristics Fund Profile Performance Portfolio Management Dividends and Capital Gains Price History Fund Reports/Prospectus Insightful Investing

Fund Profile

Invests in a range of U.S. government and agency securities

Management seeks to drive performance through sector rotation among various government securities, including: U.S. Treasuries, Ginnie Maes, Freddie Macs, Fannie Maes, and other U.S. agencies and instrumentalities.

Objective:

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

Important Risk Considerations

 

  • Classification: Bond
  • Fiscal Year End:  FEBRUARY
  • Fund Commencement: 7/25/84  
  • Class Inception: 7/25/84  
  • CUSIP:  552982100  
  • Newspaper Abbreviation: GvScA  
  • Net Assets:  $2,067.18 million (as of 3/31/14)
  • Maximum Sales Charge:  4.75%

Portfolio Facts:

 
Portfolio characteristic data are based on unaudited net assets.

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

 
Portfolio Structure
(on 3/31/14)
Mortgage Backed 46.46%
U.S. Treasuries 42.13%
U.S. Govt Agencies 7.30%
Commercial Mtg Backed 2.51%
Cash & Other1 0.95%
High Grade Corporates 0.49%
Non-U.S. Sovereigns 0.14%
Portfolio Statistics
(on 3/31/14)
What's this?
Average Effective Maturity 5.65 yrs
Average Effective Duration 4.73 yrs
 
Top 10 Holdings
(on 3/31/14)  
What's this?
Full & Historical Holdings
United States Treasury Note 2.125 MAY 31 15
United States Treasury Note 0.375 FEB 15 16
United States Treasury Note/Bond 0.875 DEC 31 16
FNMA 30YR 4.0
FNMA 30YR 4.5
United States Treasury Note 4.5 AUG 15 39
United States Treasury Note 3.125 MAY 15 21
United States Treasury Note 1.750 MAY 15 22
FHLMC GOLD 30YR 3.5
FNMA 30YR 5.5

42.68% of total net assets
Total number of holdings: 200
Credit Quality
(% of Total Net Assets on 3/31/14)
What's this?
U.S. Government 39.38%
Federal Agencies 53.76%
AAA 1.00%
AA 0.21%
A 0.73%
BBB 1.21%
Other Not Rated 2.76%
 
 

Portfolio characteristics are based on equivalent exposure, which measures how a portfolio's value would change due to price changes in an asset held either directly or, in the case of a derivative contract, indirectly. The market value of the holding may differ.

 

1 Cash and other assets are less liabilities; this may include derivative offsets.

 
 

Morningstar RatingTM: As of 3/31/14

Morningstar Category: Intermediate Government
    Overall
Morningstar
RatingTM
3 yr
Morningstar
RatingTM
5 yr
Morningstar
RatingTM
10 yr
Morningstar
RatingTM
Load  
Number of funds in Intermediate Government: 297 297 281 239

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.

MorningStar.

©2014 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

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, 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 derivatives can be used to take both long and short positions, be highly volatile, result in 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 than higher-quality debt instruments.

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

 
Mortgage-backed securities can be subject to prepayment and/or extension and therefore can offer less potential for gains and greater potential for loss.

 
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.

 
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.