Mfs Moderate Allocation Fund Investment Strategy and Details

The MFS Moderate Allocation Fund is a solid choice for investors looking to balance risk and potential returns. This fund is part of the MFS family of funds, which has a long history of providing stable investment options.

The fund's investment strategy is designed to provide a balance of growth and income, with a moderate level of risk. This is achieved by allocating a portion of the fund's assets to a mix of stocks, bonds, and other securities.

By diversifying across different asset classes, the fund aims to reduce risk and increase potential returns over the long term. This approach is a key aspect of the fund's investment strategy.

The fund's asset allocation is typically around 40-60% stocks, 30-50% bonds, and 10-20% other securities. This mix can help to smooth out market fluctuations and provide a more stable return over time.

The Moderate Allocation Fund is designed to balance risk and potential returns by investing in a mix of asset classes.

It aims to achieve its objective by allocating 40-60% of its assets to equity, 20-40% to fixed income, and 10-20% to alternative investments.

Equity investments help grow your wealth over the long term, while fixed income investments provide a relatively stable source of returns.

The fund's equity allocation is split between domestic and international stocks, with a focus on large-cap and mid-cap companies.

The fund's fixed income allocation includes government and corporate bonds, which provide regular income and relatively lower risk.

By diversifying across these asset classes, the Moderate Allocation Fund aims to reduce risk and increase potential returns.

This fund is suitable for investors with a medium risk tolerance and a long-term investment horizon.

The MFS Moderate Allocation Fund has a solid track record, with an average annual total return of 8.4% in 2024, according to the article. This is based on the fund's performance at net asset value (NAV).

The fund's performance has been impressive, with a 1-year return of 21.73% in 2019 and a 5-year annualized return of 7.61% as of 2024.

The MFS Moderate Allocation Fund has consistently outperformed the Standard & Poor's 500 Stock Index, with a 10-year annualized return of 8.4% as of 2024, compared to the index's 6.6% return over the same period.

Here's a summary of the fund's performance metrics:

The mfs moderate allocation fund has a well-diversified portfolio. The top 10 equity holdings are a good representation of this diversification.

Microsoft Corp is a significant holding in the fund, appearing in both lists of top 10 equity holdings. Amazon.com Inc and NVIDIA Corp are also consistently among the top holdings.

The fund's top 10 equity holdings include a mix of technology and finance companies. Alphabet Inc Class A, Apple Inc, and JPMorgan Chase & Co are all part of this mix.

Here are the top 10 equity holdings for the mfs moderate allocation fund:

Some of the fund's top holdings may overlap between the two lists, but the overall picture of the fund's portfolio is clear.

The MFS Moderate Allocation Fund comes with some fees that you should be aware of. The Net Expense Ratio is 1.15%, which includes the reduction of expenses from contractual fee waivers and reimbursements.

This means that if these reductions are eliminated, you can expect higher expenses and potentially lower performance. The Gross Expense Ratio is also 1.15%, which is the fund's total operating expense ratio from the latest prospectus.

You'll also want to note that Class R2 shares have no initial sales charge or CDSC, but they do carry a 0.50% annual Rule 12b-1 fee.

Here's a quick breakdown of the fees associated with the fund:

The Pricing History section of a fund's report can be a treasure trove of information, but it's also a potential minefield of complexity. The prices listed are the Net Asset Value (NAV) at the close of trading on a specific date, which is the total value of all the fund's holdings divided by the number of outstanding shares.

Historical NAV data may not be available for all dates, so don't be alarmed if you see gaps in the records. The NAV can fluctuate daily, and the change in price is calculated since the previous trading day.

Here are some key takeaways from the Pricing History section:

Keep in mind that the NAV is just one measure of a fund's performance, and it's essential to consider other factors when evaluating a fund's fees and risks.

Fees can be a complex topic, but let's break it down simply. The Net Expense Ratio reflects the reduction of expenses from contractual fee waivers and reimbursements.

A lower Net Expense Ratio is generally better, as it means you'll pay less in fees. For example, a fund with a 0.72% Net Expense Ratio is likely to be more cost-effective than one with a 1.15% Net Expense Ratio.

The Gross Expense Ratio is the fund's total operating expense ratio. This number can give you an idea of how much the fund is actually spending on expenses. For instance, a fund with a 0.72% Gross Expense Ratio is spending 0.72% of its assets on operating expenses.

Some funds may have a rule 12b-1 fee, which can range from 0.00% to 1.00% of the fund's average net assets. This fee is used to cover marketing and distribution expenses, but it can eat into your returns.

Here's a comparison of the fees for two different funds:

Maximum sales charges can also vary between funds. For example, some funds may have a 0.50% annual Rule 12b-1 fee, while others may have no initial sales charge or CDSC.

Investing in the stock market can be a rollercoaster ride, and it's essential to be aware of the risks involved. Stock markets and investments in individual stocks are volatile and can decline significantly in response to issuer, market, economic, industry, political, regulatory, geopolitical, environmental, public health, and other conditions.

Investing in debt instruments also comes with its own set of risks. Investments in debt instruments may decline in value as the result of, or perception of, declines in the credit quality of the issuer, borrower, counterparty, or other entity responsible for payment.

International investments can be even riskier, as they're exposed to greater market, currency, economic, industry, political, regulatory, geopolitical, or other conditions. This is why it's crucial to understand the risks involved before investing in foreign markets.

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

Investors should also be aware that portfolios with longer durations are generally more sensitive to a rise in interest rates than those with shorter durations. This means that if interest rates rise, the value of the portfolio may decline.

It's also worth noting that certain types of debt instruments can be more sensitive to market conditions and therefore more volatile.

The MFS Moderate Allocation Fund is a versatile investment option that allows you to own a piece of various asset classes.

The fund's share class is designed to provide a moderate level of risk and return, making it suitable for investors seeking a balanced portfolio.

Investing in the fund gives you exposure to a mix of domestic and foreign stocks, bonds, and other securities, which helps to spread risk and increase potential returns.

The fund's holdings are diversified across various sectors and industries, including technology, healthcare, and finance, to name a few.

Let's take a closer look at the top holdings of various investment portfolios. We can see that Microsoft Corp is a consistent presence in the top 10 holdings, appearing in both examples.

The top 10 equity holdings can vary between portfolios, but some companies are more likely to appear than others. For instance, NVIDIA Corp and Amazon.com Inc are also common in both examples.

In fact, the top 10 holdings can change significantly from one portfolio to another. Take a look at the two examples provided, where the only overlap between the two lists is Microsoft Corp.

Here are the top 10 holdings from the two examples:

Or, in the second example:

Notice how the second list has some differences, including ProLogis REIT which appears in the second example but not the first.

Share Class information is crucial when investing in funds. Class inception dates can vary, with one fund starting on 10/31/2003 and another on 10/01/2008.

To understand the performance of a fund, you need to know its Net Asset Value (NAV). The NAV is the total value of a fund's assets minus its liabilities. As of a specific date, the NAV can change significantly, with one fund experiencing a $18.93 change and another a $11.42 change.

The most recent NAV change can also be a significant indicator of a fund's performance. For instance, one fund had a $0.06 change, while another had a $0.09 change.

Some funds have a CUSIP, which is a unique identifier assigned to a security. One fund's CUSIP is 86664T482.

The Gross Expense Ratio is the total operating expense ratio of a fund, and it can vary significantly between funds. For example, one fund has a Gross Expense Ratio of 1.15%, while another has a Gross Expense Ratio of 0.72%.

Here are the Gross Expense Ratios of the funds mentioned:

Some funds also have a Maximum Sales Charge, but this information was not available for the funds mentioned in the article sections.

The MFS Moderate Allocation Fund has a well-structured approach to target and allocation, as evident from its investment objective.

The fund seeks a high level of total return consistent with a moderate level of risk relative to other MFS Asset Allocation Funds. This suggests that the fund is designed to balance potential returns with manageable risk.

Here's a breakdown of the fund's target allocations:

Target Allocations are a crucial aspect of any investment strategy. They help investors understand how their portfolio is allocated across different asset classes, such as stocks, bonds, and cash.

A Target Allocation is a predetermined percentage of a portfolio that is invested in a particular asset class. For example, a Target Allocation of 25.56% in U.S. Government bonds means that 25.56% of the portfolio is invested in U.S. Government bonds.

Here are the Target Allocations for a particular investment:

These Target Allocations can help investors make informed decisions about their portfolio and adjust their investments as needed to achieve their financial goals.

The investment objective of a fund can make a big difference in your decision to invest. It seems this fund seeks a high level of total return consistent with a moderate level of risk.

You'll notice the fund has a data table of holding characteristics, which can be a bit overwhelming. But let's break it down - the fund has 3323 fixed income issues from 953 issuers.

The average coupon of these issues is 3.81, which might be a good thing to consider if you're looking for a relatively stable income stream. The average effective duration is 5.26 years, which could be a bit of a concern if you're planning to sell the fund anytime soon.

Here are some key holding characteristics at a glance:

Sales charges can be a bit of a hassle, but it's good to know the fine print. Class C shares have no initial sales charge, but you might be subject to a 1% contingent deferred sales charge if you redeem them within a year.

When looking at a portfolio's allocation, it's essential to consider the region and country breakdown. The portfolio is heavily invested in North America, with 74.19% of equity assets.

The United Kingdom and Japan also have a significant presence, with 4.25% and 4.01% of equity assets, respectively. Emerging Markets account for 4.93% of equity assets.

Here's a breakdown of the portfolio's regional allocation:

It's worth noting that the portfolio also includes short positions, which can lose value if the underlying asset gains value.

If you're considering investing in the MFS Moderate Allocation Fund, you'll want to review the prospectuses and SAIs.

A Summary Prospectus provides a brief overview of the fund, including its investment objectives, risks, and expenses.

The Statement of Additional Information (SAI) offers more detailed information about the fund, including its investment strategies and fees.

You can also find a full Prospectus, which provides a comprehensive look at the fund's features and risks.

Here are the key documents you'll need to review: