INVESTMENT OBJECTIVE
Seeks total return with an emphasis on high current income, but also considering capital appreciation.
INVESTMENT FOCUS
A core U.S. high yield portfolio managed to seek to enhance returns and within a risk framework over full market cycles
Bottom-up fundamental research emphasizes selection of companies we believe are managed to withstand the credit cycle
Top-down risk budgeting adjusts relative risk exposures based on valuation analysis
Fund Information
- Fund Commencement 02/17/1978
- Net Assets ($ M) As of 10/31/24 $1894.31
- Fiscal Year End JANUARY
-
Benchmark
Bloomberg U.S. Corporate High-Yield 2% Issuer Capped Index
Bloomberg U.S. High-Yield Corporate Bond 2% Issuer Capped Index is a market capitalization-weighted index that measures the performance of non-investment grade, fixed rate debt. Eurobonds and debt issues from countries designated as emerging markets are excluded. This index is the 2% Issuer Cap component of the U.S. Corporate High Yield index.
Share Class Information
- Class Inception 02/17/1978
- Net Asset Value (NAV) As of 11/15/24 $3.10
- Most Recent NAV Change As of 11/15/24 $0.01 | 0.32%
- Fund Number 18
- Maximum Sales Charge 4.25%
-
Gross Expense Ratio
0.88%
Gross Expense Ratio: The Gross Expense Ratio is the fund's total operating expense ratio from the fund's most recent prospectus.
-
Net Expense Ratio
0.87%
Net Expense Ratio: The Net Expense Ratio reflects the reduction of expenses from contractual fee waivers and reimbursements. Elimination of these reductions will result in higher expenses and lower performance.
These reductions will continue until at least 05/31/25
MANAGERS
Top 10 Holdings
- Invesco Senior Loan ETF ETF
- CCO Holdings LLC 144A 4.75% MAR 01 30
- FMG Resources August 2006 Pty Ltd 144A 4.375% APR 01 31
- Ritchie Bros Holdings Inc 144A 7.75% MAR 15 31
- CHS/Community Health Systems Inc 144A 5.25% MAY 15 30
- CCO Holdings LLC 144A 4.5% AUG 15 30
- TransDigm Inc 144A 6.875% DEC 15 30
- SS&C Technologies Inc 144A 5.5% SEP 30 27
- Ziggo Bond Co BV 144A 5.125% FEB 28 30
- Hilton Domestic Operating Co Inc 4.875% JAN 15 30
Important Risk Considerations
The fund may not achieve its objective and/or you could lose money on your investment in the fund.
Bond: 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, 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 portfolio's value may decline during rising rates. Portfolios 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.
International: Investments in foreign markets can involve greater risk and volatility than U.S. investments because of adverse market, currency, economic, industry, political, regulatory, geopolitical, or other conditions.
Derivatives: 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.
High Yield: 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.
Please see the prospectus for further information on these and other risk considerations.
David Cole, CFA
Portfolio Manager
David P. Cole, CFA, is an investment officer of MFS Investment Management® (MFS®). He is also a co-portfolio manager of the firm's high-yield portfolios.
David joined MFS in 2004 after working for five years as a high-yield analyst for Franklin Templeton Investments. Before that, he served as a financial economist/Treasury market analyst for Thomson Financial Services and an economist for Standard and Poor's.
David has a bachelor's degree from Cornell University and an MBA from University of California, Berkeley. He holds the Chartered Financial Analyst (CFA) designation.
Our portfolio managers are supported by our entire team of investment professionals in nine worldwide offices. The team employs a proprietary investment process to build better insights for our clients. The core principles of our approach are integrated research, global collaboration, and active risk management.
Michael Skatrud, CFA
Portfolio Manager
Michael Skatrud, CFA, is an investment officer and fixed income portfolio manager at MFS Investment Management® (MFS®). In this role, he is responsible for final buy and sell decisions, portfolio construction, risk assessment and cash management. He also participates in the research process and strategy discussions. Michael joined MFS in 2013 as a fixed income analyst and was named a portfolio manager in 2018. He previously worked for Columbia Management, where he was as a high yield analyst for four years. Before that, he was a senior credit analyst at Oppenheimer Funds, Inc. for two years and spent seven years as a corporate bond analyst at Putnam Investments. He began his career in the financial services industry in 1996. Michael earned a Bachelor of Science degree in economics with distinction from the University of Wisconsin and a Master of Business Administration degree in finance from the University of Pennsylvania's Wharton School of Business. He is a CFA charterholder and a member of the CFA Society Boston.
Performance
Average Annual Total Returns (%)
Important Performance Information
Sales Charges
Class A shares ("A") results include the maximum sales charge.
Annual Rate of Return (%)
As of 12/31/23 | Benchmark: Bloomberg U.S. Corporate High-Yield 2% Issuer Capped Index| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|---|---|---|---|
| At NAV | 2.20 | -3.82 | 13.38 | 6.13 | -3.30 | 14.43 | 4.42 | 3.20 | -10.56 | 12.18 |
| With Sales Charge | -2.15 | -7.90 | 8.56 | 1.62 | -7.41 | 9.57 | -0.01 | -1.19 | -14.36 | 7.41 |
| Bloomberg U.S. Corporate High-Yield 2% Issuer Capped Index | 2.46 | -4.43 | 17.13 | 7.50 | -2.08 | 14.32 | 7.05 | 5.26 | -11.18 | 13.44 |
| At NAV | With Sales Charge | Bloomberg U.S. Corporate High-Yield 2% Issuer Capped Index | |
|---|---|---|---|
| 2023 | 12.18 | 7.41 | 13.44 |
| 2022 | -10.56 | -14.36 | -11.18 |
| 2021 | 3.2 | -1.19 | 5.26 |
| 2020 | 4.42 | -0.01 | 7.05 |
| 2019 | 14.43 | 9.57 | 14.32 |
| 2018 | -3.3 | -7.41 | -2.08 |
| 2017 | 6.13 | 1.62 | 7.5 |
| 2016 | 13.38 | 8.56 | 17.13 |
| 2015 | -3.82 | -7.9 | -4.43 |
| 2014 | 2.2 | -2.15 | 2.46 |
Pricing History
- NAV at Close of Trading on: 11/15/24
- Net Asset Value (NAV): $3.10
- Change ($) (since 11/14/24 ): 0.01
- Change (%) (since 11/14/24 ): 0.32
- Market Price (MP):
Historical NAV may not be available for all dates.
Historical MP may not be available for all dates.
Distribution Rates (%)
The distribution rates are computed by annualizing the current distribution rate per share (excluding short-term capital gains), and dividing the result by the public offering price (for the distribution rate including sales charge) or net asset value (for the distribution rate not including sales charge) at the end of the business day.
The distribution rates are computed by annualizing the current distribution rate per share (excluding short-term capital gains), and dividing the result by the public offering price (for the distribution rate including sales charge) or net asset value (for the distribution rate not including sales charge) at the end of the business day.
As of 10/31/24
| Charges | Distribution Rate |
| Not Including Sales Charges | 6.00 |
| Including Sales Charges | 5.74 |
30-Day SEC Yield (%)
The fund's 30-day yield is based on the yield of a fund's investments over a 30-day period and not on the dividend paid by the fund, which may differ.
As of 10/31/24
| Wavier | Yield Value |
| Without Waiver | 5.59 |
| With Waiver | 5.61 |
Distributions
The Record Date is the date on which a fund declares a distribution. To receive the distribution, an investor must be a shareholder of record on that date.The Payable Date is the date on which the distribution is paid to shareholders.
Dividend Rate per Share is the amount of dividend that a shareholder will receive for each share held. It can be calculated by taking the total amount of dividends paid and dividing it by the total shares outstanding.
Dividend Reinvestment at NAV is the automatic reinvestment of shareholder dividends in more shares at net asset value.
Ex-Dividend Date is the date on which a fund goes ex-dividend. The interval between the announcement and the payment of the next dividend. An investor must own the fund before the ex-dividend date to be eligible for the dividend payout.
Long-term Capital Gain
The gain on the sale of a capital asset where the holding period was more than 12 months and the profit was subject to the long-term capital gains tax.
(Source: Barron's Dictionary of Finance and Investment Terms)
Short-term Capital Gain
For tax purposes the profit realized from the sale of securities or other capital assets held for less than 12 months. Short-term gains are taxable at ordinary income rates to the extent they are not reduced by offsetting capital losses.
(Source: Barron's Dictionary of Finance and Investment Terms)
The Payable Date is the date on which the distribution is paid to shareholders.
Dividend Rate per Share is the amount of dividend that a shareholder will receive for each share held. It can be calculated by taking the total amount of dividends paid and dividing it by the total shares outstanding.
Dividend Reinvestment at NAV is the automatic reinvestment of shareholder dividends in more shares at net asset value.
Ex-Dividend Date is the date on which a fund goes ex-dividend. The interval between the announcement and the payment of the next dividend. An investor must own the fund before the ex-dividend date to be eligible for the dividend payout.
Long-term Capital Gain The gain on the sale of a capital asset where the holding period was more than 12 months and the profit was subject to the long-term capital gains tax. (Source: Barron's Dictionary of Finance and Investment Terms)
Short-term Capital Gain For tax purposes the profit realized from the sale of securities or other capital assets held for less than 12 months. Short-term gains are taxable at ordinary income rates to the extent they are not reduced by offsetting capital losses. (Source: Barron's Dictionary of Finance and Investment Terms)
Updated Daily As of 11/16/24
| Record Date | Ex-Date | Payable Date | Type of Earnings | Rate per Share (US$) | Reinvestment NAV (US$) |
|---|---|---|---|---|---|
| 10/31/24 | 10/31/24 | 11/01/24 | Dividend | 0.01550 | 3.10 |
| 09/30/24 | 09/30/24 | 10/01/24 | Dividend | 0.01550 | 3.14 |
| 08/30/24 | 08/30/24 | 09/03/24 | Dividend | 0.01599 | 3.11 |
| 07/31/24 | 07/31/24 | 08/01/24 | Dividend | 0.01599 | 3.08 |
| 06/28/24 | 06/28/24 | 07/01/24 | Dividend | 0.01599 | 3.05 |
| 05/31/24 | 05/31/24 | 06/03/24 | Dividend | 0.01575 | 3.04 |
| 04/30/24 | 04/30/24 | 05/01/24 | Dividend | 0.01575 | 3.02 |
| 03/28/24 | 03/28/24 | 04/01/24 | Dividend | 0.01500 | 3.06 |
| 02/29/24 | 02/29/24 | 03/01/24 | Dividend | 0.01499 | 3.04 |
| 01/31/24 | 01/31/24 | 02/01/24 | Dividend | 0.01500 | 3.06 |
| 12/29/23 | 12/29/23 | 12/29/23 | Dividend | 0.01500 | 3.07 |
| 11/30/23 | 11/30/23 | 12/01/23 | Dividend | 0.01500 | 2.98 |
-
Overview
INVESTMENT OBJECTIVE
Seeks total return with an emphasis on high current income, but also considering capital appreciation.
INVESTMENT FOCUS
A core U.S. high yield portfolio managed to seek to enhance returns and within a risk framework over full market cycles
Bottom-up fundamental research emphasizes selection of companies we believe are managed to withstand the credit cycle
Top-down risk budgeting adjusts relative risk exposures based on valuation analysis
Fund Information
- Fund Commencement 02/17/1978
- Net Assets ($ M) As of 10/31/24 $1894.31
- Fiscal Year End JANUARY
-
Benchmark
Bloomberg U.S. Corporate High-Yield 2% Issuer Capped Index
Bloomberg U.S. High-Yield Corporate Bond 2% Issuer Capped Index is a market capitalization-weighted index that measures the performance of non-investment grade, fixed rate debt. Eurobonds and debt issues from countries designated as emerging markets are excluded. This index is the 2% Issuer Cap component of the U.S. Corporate High Yield index.
Share Class Information
- Class Inception 02/17/1978
- Net Asset Value (NAV) As of 11/15/24 $3.10
- Most Recent NAV Change As of 11/15/24 $0.01 | 0.32%
- Fund Number 18
- Maximum Sales Charge 4.25%
-
Gross Expense Ratio
0.88%
Gross Expense Ratio: The Gross Expense Ratio is the fund's total operating expense ratio from the fund's most recent prospectus.
-
Net Expense Ratio
0.87%
Net Expense Ratio: The Net Expense Ratio reflects the reduction of expenses from contractual fee waivers and reimbursements. Elimination of these reductions will result in higher expenses and lower performance.
These reductions will continue until at least 05/31/25
MANAGERS
Top 10 Holdings
As of 10/31/24- Invesco Senior Loan ETF ETF
- CCO Holdings LLC 144A 4.75% MAR 01 30
- FMG Resources August 2006 Pty Ltd 144A 4.375% APR 01 31
- Ritchie Bros Holdings Inc 144A 7.75% MAR 15 31
- CHS/Community Health Systems Inc 144A 5.25% MAY 15 30
- CCO Holdings LLC 144A 4.5% AUG 15 30
- TransDigm Inc 144A 6.875% DEC 15 30
- SS&C Technologies Inc 144A 5.5% SEP 30 27
- Ziggo Bond Co BV 144A 5.125% FEB 28 30
- Hilton Domestic Operating Co Inc 4.875% JAN 15 30
Important Risk Considerations
The fund may not achieve its objective and/or you could lose money on your investment in the fund.
Bond: 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, 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 portfolio's value may decline during rising rates. Portfolios 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.
International: Investments in foreign markets can involve greater risk and volatility than U.S. investments because of adverse market, currency, economic, industry, political, regulatory, geopolitical, or other conditions.
Derivatives: 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.
High Yield: 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.
Please see the prospectus for further information on these and other risk considerations.
David Cole, CFA
Portfolio Manager
31YEARS WITH INDUSTRY
18YEARS WITH PORTFOLIODavid P. Cole, CFA, is an investment officer of MFS Investment Management® (MFS®). He is also a co-portfolio manager of the firm's high-yield portfolios.
David joined MFS in 2004 after working for five years as a high-yield analyst for Franklin Templeton Investments. Before that, he served as a financial economist/Treasury market analyst for Thomson Financial Services and an economist for Standard and Poor's.
David has a bachelor's degree from Cornell University and an MBA from University of California, Berkeley. He holds the Chartered Financial Analyst (CFA) designation.
Our portfolio managers are supported by our entire team of investment professionals in nine worldwide offices. The team employs a proprietary investment process to build better insights for our clients. The core principles of our approach are integrated research, global collaboration, and active risk management.
Michael Skatrud, CFA
Portfolio Manager
28YEARS WITH INDUSTRY
7YEARS WITH PORTFOLIOMichael Skatrud, CFA, is an investment officer and fixed income portfolio manager at MFS Investment Management® (MFS®). In this role, he is responsible for final buy and sell decisions, portfolio construction, risk assessment and cash management. He also participates in the research process and strategy discussions. Michael joined MFS in 2013 as a fixed income analyst and was named a portfolio manager in 2018. He previously worked for Columbia Management, where he was as a high yield analyst for four years. Before that, he was a senior credit analyst at Oppenheimer Funds, Inc. for two years and spent seven years as a corporate bond analyst at Putnam Investments. He began his career in the financial services industry in 1996. Michael earned a Bachelor of Science degree in economics with distinction from the University of Wisconsin and a Master of Business Administration degree in finance from the University of Pennsylvania's Wharton School of Business. He is a CFA charterholder and a member of the CFA Society Boston.
-
Performance
Performance
Average Annual Total ReturnsAverage Annual Total Returns (%)
These results represent the percent change in net asset value.Monthly | Quarterly As of 09/30/24 (*YTD Updated Daily, As of 11/15/24 , subject to revision and not annualized.)The performance shown is attributable in part to unusual market conditions. These conditions may not be repeated in the future.The performance shown is attributable in part to unusual market conditions. These conditions may not be repeated in the future.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.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.
Annual Rate of ReturnAnnual Rate of Return (%)
As of 12/31/23 | Benchmark: Bloomberg U.S. Corporate High-Yield 2% Issuer Capped Indexannual rate of return table 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 At NAV 2.20 -3.82 13.38 6.13 -3.30 14.43 4.42 3.20 -10.56 12.18 With Sales Charge -2.15 -7.90 8.56 1.62 -7.41 9.57 -0.01 -1.19 -14.36 7.41 Bloomberg U.S. Corporate High-Yield 2% Issuer Capped Index 2.46 -4.43 17.13 7.50 -2.08 14.32 7.05 5.26 -11.18 13.44 At NAV With Sales Charge Bloomberg U.S. Corporate High-Yield 2% Issuer Capped Index 2023 12.18 7.41 13.44 2022 -10.56 -14.36 -11.18 2021 3.2 -1.19 5.26 2020 4.42 -0.01 7.05 2019 14.43 9.57 14.32 2018 -3.3 -7.41 -2.08 2017 6.13 1.62 7.5 2016 13.38 8.56 17.13 2015 -3.82 -7.9 -4.43 2014 2.2 -2.15 2.46 Pricing & DistributionsPricing History
- NAV at Close of Trading on: 11/15/24
- Net Asset Value (NAV): $3.10
- Change ($) (since 11/14/24 ): 0.01
- Change (%) (since 11/14/24 ): 0.32
- Market Price (MP):
Maximum data displayed is for the most recent 10 yearsHistorical NAV LookupEnter date for which you wish to obtain a Historical NAV for this fundHistorical NAV may not be available for all dates.
Historical MP LookupEnter date for which you wish to obtain a Historical MP for this fundHistorical MP may not be available for all dates.
Distribution Rates (%)
The distribution rates are computed by annualizing the current distribution rate per share (excluding short-term capital gains), and dividing the result by the public offering price (for the distribution rate including sales charge) or net asset value (for the distribution rate not including sales charge) at the end of the business day.
As of 10/31/24
Charges Distribution Rate Not Including Sales Charges 6.00 Including Sales Charges 5.74 30-Day SEC Yield (%)
The fund's 30-day yield is based on the yield of a fund's investments over a 30-day period and not on the dividend paid by the fund, which may differ.As of 10/31/24
Wavier Yield Value Without Waiver 5.59 With Waiver 5.61 Distributions
The Record Date is the date on which a fund declares a distribution. To receive the distribution, an investor must be a shareholder of record on that date.The Payable Date is the date on which the distribution is paid to shareholders.
Dividend Rate per Share is the amount of dividend that a shareholder will receive for each share held. It can be calculated by taking the total amount of dividends paid and dividing it by the total shares outstanding.
Dividend Reinvestment at NAV is the automatic reinvestment of shareholder dividends in more shares at net asset value.
Ex-Dividend Date is the date on which a fund goes ex-dividend. The interval between the announcement and the payment of the next dividend. An investor must own the fund before the ex-dividend date to be eligible for the dividend payout.
Long-term Capital Gain The gain on the sale of a capital asset where the holding period was more than 12 months and the profit was subject to the long-term capital gains tax. (Source: Barron's Dictionary of Finance and Investment Terms)
Short-term Capital Gain For tax purposes the profit realized from the sale of securities or other capital assets held for less than 12 months. Short-term gains are taxable at ordinary income rates to the extent they are not reduced by offsetting capital losses. (Source: Barron's Dictionary of Finance and Investment Terms)
Updated Daily As of 11/16/24
Record Date Ex-Date Payable Date Type of Earnings Rate per Share (US$) Reinvestment NAV (US$) 10/31/24 10/31/24 11/01/24 Dividend 0.01550 3.10 09/30/24 09/30/24 10/01/24 Dividend 0.01550 3.14 08/30/24 08/30/24 09/03/24 Dividend 0.01599 3.11 07/31/24 07/31/24 08/01/24 Dividend 0.01599 3.08 06/28/24 06/28/24 07/01/24 Dividend 0.01599 3.05 05/31/24 05/31/24 06/03/24 Dividend 0.01575 3.04 04/30/24 04/30/24 05/01/24 Dividend 0.01575 3.02 03/28/24 03/28/24 04/01/24 Dividend 0.01500 3.06 02/29/24 02/29/24 03/01/24 Dividend 0.01499 3.04 01/31/24 01/31/24 02/01/24 Dividend 0.01500 3.06 12/29/23 12/29/23 12/29/23 Dividend 0.01500 3.07 11/30/23 11/30/23 12/01/23 Dividend 0.01500 2.98 Past performance is no guarantee of future results. Please consult your tax advisor for further information.