MFS® Total Return Bond Fund

Fund Overview

Objective

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

Key Differentiators

  • A research-driven core plus bond fund
  • Primarily investment-grade bond fund that integrates macro, bottom-up, and quantitative perspectives in an effort to add value through sector allocation, security selection, and duration/yield curve decisions
  • Through a collaborative process, portfolio managers set the strategy’s risk budget and work with analysts to select securities.

Managers

Fund Information

MRBFXSYMBOL
$10.71 DAILY NAV AS OF 5/26/17
$4.8 B NET ASSETS AS OF 4/30/17
Fund Commencement
1/4/99
Class Inception
1/4/99
Net Assets ($M)
As of 4/30/17
$4,808.02
Maximum Sales Charge
4.25%
Net Asset Value (NAV)
As of 5/26/17
$10.71
NAV Change
$ 0.01  | 0.09%
Fiscal Year End
APRIL
Fund Number
78
Average Effective Duration
As of 4/30/17
5.90 yrs
Average Effective Maturity
As of 4/30/17
8.86 yrs
Gross Expense ratio
0.89 %
Net Expense ratio
0.74 %

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 4/30/17

US Treasury Note 1.625% JUN 30 19
US Treasury Note 0.75% JUN 30 17
UST Bond 2Yr Future Jun 30 17
US Treasury Note 1% NOV 30 18
FNMA 30YR 4.0
UST Bond 5Yr Future JUN 30 17
FNMA 30YR 3.5
US Treasury Bond 2.875% MAY 15 43
FNMA 30YR 4.5
FHLMC GOLD 30YR 3.5

30.24% of total net assets

Total number of holdings: 435

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 4/30/17 (YTD Updated Daily, as of 5/26/17) As of 3/31/17
 

*YTD Updated Daily as of 5/26/17, 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 4/30/17

MORNINGSTAR CATEGORY:

Intermediate-Term Bond

Overall

Out of   856   funds

3 Yr.

Out of   856   funds

5 Yr.

Out of   763   funds

10 Yr.

Out of   539   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 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 below investment grade quality debt instruments can be more volatile and have greater risk of default, or already be in default, than higher-quality debt instruments.

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

  • 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.