Mfs Conservative Allocation Fund Comparison and Investment Insights

The MFS Conservative Allocation Fund is designed to provide a balanced approach to investing, aiming to balance returns with risk management. This fund is suitable for investors seeking a relatively stable investment option.

The fund's investment strategy is centered around allocating assets across different asset classes, including stocks, bonds, and other securities. This diversification approach helps spread risk and can potentially lead to more stable returns.

One of the key characteristics of the MFS Conservative Allocation Fund is its moderate risk profile, which is reflected in its investment mix of 60% stocks and 40% bonds. This allocation is designed to balance potential returns with the need for stability.

Investors can expect the fund to generate returns that are generally lower than those of more aggressive investment options, but also come with lower volatility. This makes it an attractive option for those seeking a stable source of returns.

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The MFS Conservative Allocation Fund has been around since June 28, 2002, which is a significant milestone in its history.

Its fund family name is MFS Funds, a well-established and reputable name in the investment world.

Here are some key details about the fund's structure:

The Fund Description section is where you'll find the nitty-gritty details about the fund. This section is typically divided into two main categories: investment objectives and strategies.

The investment objectives are clearly stated, outlining the fund's goals and what it aims to achieve. For example, the fund aims to provide long-term growth by investing in a mix of stocks and bonds.

The fund's strategy is also outlined, including the types of investments it will make and the level of risk it's willing to take. This can range from conservative to aggressive, depending on the fund's objectives.

The fund's investment approach is designed to be consistent with its objectives, and it's typically outlined in the fund's prospectus. This document provides a detailed overview of the fund's structure and operations.

The fund's management team is responsible for implementing the investment strategy and overseeing the fund's day-to-day operations. They're typically experienced professionals with a track record of success in the industry.

The fund's fees and expenses are also an important consideration, and they're typically outlined in the fund's prospectus. These fees can eat into your returns, so it's essential to understand what you're paying for.

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Assets Under Management is a crucial aspect of a fund's overall performance. The fund in question has $365 million in total assets, which is below the $413 million average for its category.

Lower assets under management can indeed translate to higher average expense ratios, but it's not always a bad thing. For small-cap investing, it may be challenging for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

A fund's asset size can impact its ability to manage investments effectively. With $365 million in assets, this fund may be able to focus on smaller, more niche investments that larger funds can't touch.

It's essential to consider the relationship between risk and return when evaluating a fund's assets under management. A fund with lower assets may take on less risk, but it may also have less potential for growth.

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The MFS Conservative Allocation Fund has been around since 2002, making it a relatively established investment option.

The fund's primary goal is to provide a high level of total return with a conservative level of risk, which is a great fit for those looking for a stable investment.

MFS Conservative Allocation I is actively managed by a team of four experienced professionals, with an average tenure of 7.97 years. This level of experience and stability is reassuring for investors.

The fund has a diverse portfolio with 22 securities, and its top 10 holdings account for 75.4% of its assets, providing a solid foundation for growth.

With a 65.1% allocation to bonds, the fund offers a conservative approach to investing, with a focus on generating returns while minimizing risk.

MFS Conservative Allocation I has a moderate level of foreign investment, with 22.6% of its portfolio invested in foreign issues, providing a touch of international diversification.

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The investment objective of MFS Conservative Allocation I is to seek a high level of total return consistent with a conservative level of risk relative to the other MFS Asset Allocation Funds. This objective is clearly stated in the fund's investment objective.

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The fund's management team, consisting of 4 members with an average tenure of 7.97 years, is responsible for achieving this objective. With Benjamin Nastou, Natalie Shapiro, Erich Shigley, and Joseph Flaherty at the helm, the team has a solid foundation to manage the fund's investments effectively.

The fund's primary benchmark is the Bloomberg US Agg Bond TR USD index, with a weighting of 100%. This indicates that the fund's performance will be closely tied to the performance of this benchmark index.

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The Morningstar Rating for funds, or "star rating", is calculated for funds with at least a three-year history. It's 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. This ranking system helps investors quickly compare funds within the same category.

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Morningstar rankings do not take into account sales charges and are based on historical returns, which are not indicative of future results. It's essential to remember that past performance is not a guarantee of future success.

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.

A high relative ranking does not always mean the fund achieved a positive return during the period. This is an important consideration for investors, as it helps to put the rankings into perspective.

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The MFS Conservative Allocation Fund is designed to provide a stable return with a relatively low level of risk.

The fund's investment strategy involves allocating 40% of its assets to bonds, 30% to stocks, and 30% to money market instruments.

This balanced approach helps to minimize volatility and generate steady returns over the long term.

Performance is about achieving goals and meeting expectations. It's a key aspect of any project or endeavor.

Good performance is often linked to clear goals and objectives, which provide direction and focus. In fact, research shows that setting specific, measurable, achievable, relevant, and time-bound (SMART) goals can improve performance by up to 25%.

Having the right skills and knowledge is also crucial for good performance. For example, a study found that employees who received regular training and development opportunities were 22% more productive than those who didn't.

Effective time management is another essential aspect of performance. By prioritizing tasks and avoiding distractions, individuals can free up more time and energy to focus on high-priority tasks.

Regular feedback and evaluation are also important for improving performance. By regularly assessing progress and identifying areas for improvement, individuals can make adjustments and stay on track.

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Class R3 shares of the investment have a 0.25% annual Rule 12b-1 fee, which is a relatively low fee compared to others.

The shares are available to eligible investors, which means you'll need to meet certain criteria to be able to invest.

The investment has a weighted average price/earnings ratio of 19.81x, which is a measure of how much investors are paying for each dollar of earnings.

The investment has a weighted average price/cash flow ratio of 17.03x, which is a measure of how much investors are paying for each dollar of cash flow.

Here are some key statistics about the investment's holdings:

The MFS Conservative Allocation Fund comes with some risks that you should be aware of. The fund may not achieve its objective, and you could lose money on your investment.

Stock and bond investments can be volatile, and their value may decline due to various factors. International investments carry even greater risk and volatility due to market, currency, and other conditions. Additionally, the fund invests in underlying funds, which can also pose risks.

The fund's fees are relatively low, with a Net Expense Ratio of 0.83%. This is lower than some other funds in the category. Here are the fund's fees in a breakdown:

Investing in the fund comes with its own set of risks. Stock markets are volatile and can decline significantly in response to various conditions.

The fund invests in debt instruments, which can also decline in value due to changes in credit quality or interest rates. Debt instruments with longer durations are generally more sensitive to rising interest rates.

Investments in foreign markets can be riskier and more volatile than U.S. investments. This is due to factors such as market, currency, economic, and political conditions.

The fund's strategy of investing in underlying funds exposes it to the risks of those funds. Each underlying fund pursues its own objective and strategies, and may not achieve its objective.

The fund's portfolio manager works with a team of quantitative investment professionals to determine the asset allocation among the underlying funds. This team applies quantitative research across multiple factors to determine investment opportunities.

Here are some key risk considerations to keep in mind:

The fund's portfolio is comprised of various asset classes, including stocks and debt instruments. The weighted average price/earnings ratio of the fund's holdings is 19.81x, and the weighted average market cap is $404.6 billion.

Fees can be a significant factor in your investment returns. The Net Expense Ratio for some funds is as low as 0.06%, while others can be as high as 21.26%.

The Gross Expense Ratio is the fund's total operating expense ratio, which can be found in the fund's most recent prospectus. For some funds, this ratio is 0.83%.

Maximum Sales Charges can vary, with some funds having no initial sales charge or CDSC, while others may charge up to 1.25% of the fund's assets under management (AUM).

Here's a breakdown of operational fees for some funds:

The MFS Conservative Allocation Fund has a well-diversified portfolio, with a focus on fixed income assets.

The fund's target allocation to fixed income assets is 85.19%. This is a conservative approach that aims to provide stable returns with minimal risk.

Here's a breakdown of the fund's fixed income asset allocation:

The fund's conservative approach is also reflected in its use of equivalent exposure, which measures how the portfolio's value would change due to price changes in an asset held directly or indirectly.

The top 10 holdings of the portfolio are actively managed, meaning they can change over time.

The portfolio's holdings are subject to sales charges, which are fees associated with buying or selling securities.

The Global Industry Classification Standard (GICS) is a proprietary system used to classify industries and sectors, but the portfolio uses its own internal methodology for equity and non-equity securities that are not classified by GICS.

In our portfolio composition, we focus on a mix of short- and long-term fixed income holdings to balance risk and return. Our top 10 fixed income holdings are carefully selected to provide a stable source of income and protect against inflation.

The US Treasury Inflation Indexed Bonds are a key component of our fixed income strategy, with holdings in 0.125% JAN 15 32 and 0.125% JAN 15 31. These bonds offer a low-risk investment with a fixed return, adjusted for inflation.

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We also hold a mix of short- and long-term US Treasury bonds, including the UST Bond 2Yr Future MAR 31 25 and the US Treasury Note 4.625% NOV 15 26. These bonds provide a stable source of income and can help to reduce portfolio risk.

One of our long-term fixed income holdings is the UMBS 30 Year 2.5, which offers a higher return than shorter-term bonds. We also hold the UMBS 30 Year 2.0, which provides a slightly lower return but still offers a stable source of income.

Here are our top 10 fixed income holdings:

In a typical portfolio, the sector weights can vary significantly. Here, the financial sector makes up 18.13% of the equity assets.

The information technology sector is a close second, accounting for 17.69% of the equity assets. This is a significant allocation.

The industrials sector also has a substantial presence, making up 14.70% of the equity assets. This sector is often sensitive to economic conditions.

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Consumer discretionary and healthcare sectors are also notable, with allocations of 8.74% and 9.92% respectively. These sectors can be influenced by consumer spending and healthcare trends.

Here's a breakdown of the sector weights in the portfolio:

Keep in mind that current holdings may differ from these sector weights.

When evaluating the concentration of a portfolio, it's essential to consider the number of holdings and their distribution. A portfolio with fewer holdings is more concentrated, while one with many holdings is less concentrated.

A concentrated portfolio can be a double-edged sword. On one hand, it may indicate a high level of conviction in the selected investments. On the other hand, it increases the risk of significant losses if one or more holdings underperform.

The MACFX portfolio has 22 holdings, which is relatively concentrated compared to the category average of 2,305 holdings. This suggests a focused investment strategy.

Here's a breakdown of the MACFX portfolio's concentration:

A closer look at the MACFX portfolio reveals that 74.76% of its net assets are invested in its top 10 holdings, which is significantly higher than the category average of 8.4%. This further emphasizes the concentrated nature of the portfolio.

The MFS Conservative Allocation Fund has had a range of annual returns over the years, from -13.5% in 2022 to 17.02% in 2019. At the end of 2023, the fund's annual rate of return was 10.47%.

One way to gauge the fund's performance is to look at its return ranking. In the trailing 1-year period, the fund ranked 97.77% in its category, with a return of 3.6%. This is a significant improvement from the previous 3-year period, where the fund ranked 90.70% with a return of -0.1%.

Here's a breakdown of the fund's return rankings over the past few years:

The fund's returns have been volatile, but it's worth noting that the Bloomberg U.S. Aggregate Bond Index, which is a benchmark for the fund, had a return of -13.01% in 2022. In contrast, the fund's return was -13.5% in the same year.

The MFS Conservative Allocation Fund has some interesting distribution and fee structures that are worth noting. The fund's distributions are made annually, with a net income ratio of 1.51%. This means that a significant portion of the fund's income is distributed to shareholders each year.

One notable aspect of the fund's distributions is the capital gain distribution frequency, which is also annually. This is in contrast to the dividend distribution frequency, which is quarterly. This suggests that the fund's managers are making decisions about when to distribute capital gains, which can impact the fund's tax efficiency.

The fund's expense ratio is 0.83%, which is relatively low compared to other funds in its category. This is likely due to the fund's management fee, which is 0.00%. The 12b-1 fee, which is used to cover marketing and distribution expenses, is 0.25%. This is a relatively low fee, and it suggests that the fund's managers are keeping costs in check.

Here's a breakdown of the fund's fees:

Overall, the MFS Conservative Allocation Fund's distribution and fee structures are relatively straightforward and low-cost. This makes it a good option for investors who are looking for a conservative allocation strategy with minimal fees.

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The MFS Conservative Allocation Fund is a solid choice for those seeking a balanced investment portfolio.

It has a moderate risk profile, which makes it suitable for investors who want to minimize their exposure to market volatility.

The fund invests in a mix of stocks, bonds, and other securities, with a focus on preserving capital and generating steady returns.

According to the fund's investment strategy, it will typically allocate around 40-60% of its assets to stocks, 20-40% to bonds, and 10-20% to other securities.

This diversification helps to reduce risk and increase potential returns over the long term.

The fund's expense ratio is relatively low, at 0.74%, which means that investors can keep more of their returns without having to pay high fees.

This is particularly important for long-term investors who are looking to grow their wealth over time.

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