(PUB) Investing 2016

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23 Morningstar FundInvestor February 2016
Data through January 31, 2016 FINRA members: For internal or institutional use only.
MFS Growth A Ticker
MFEGX
Yield
0.0%
Total Assets
$11,204 mil
Mstar Category
Large Growth
Benchmark 1: Russell 1000 Growth TR USD
Benchmark 2: S&P 500 TR USD
Morningstar Analyst Rating 12-16-15
„
Morningstar Pillars
Process ∞ Positive
Performance ∞ Positive
People ∞ Positive
Parent ∞ Positive
Price ∞ Positive
Morningstar Analyst Rating
Morningstar evaluates mutual funds based on five key pillars, which its
analysts believe lead to funds that are more likely to outperform over the
long term on a risk-adjusted basis.
Analyst Rating Spectrum
Œ „ ´ ‰ Á
Pillar Spectrum
∞ Positive § Negative ¶ Neutral
10.0
15.0
20.0
Historical Profile
Return
Risk
Rating
Above Avg
Below Avg
QQQQ
Above Avg
7 7 7 7 7 7 7 7 Investment Style
Equity
Growth of $10,000
Investment Values of
Fund
Investment Values of
Benchmark 1
* & * * * * * & ( & & Performance Quartile
(within Category)
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 01-16 History
37.35 42.01 26.21 36.22 41.89 41.64 48.76 65.41 68.19 70.33 66.76 NAV
7.54 20.82 -37.61 38.19 15.65 -0.60 17.10 36.28 8.52 7.11 -5.08 Total Return %
-1.53 9.01 0.83 0.98 -1.06 -3.24 1.84 2.80 -4.53 1.44 0.51 +/- Bmark 1
-8.25 15.33 -0.61 11.73 0.59 -2.71 1.10 3.89 -5.17 5.73 -0.11 +/- Bmark 2
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Income Return %
7.54 20.82 -37.61 38.19 15.65 -0.60 17.10 36.28 8.52 7.11 -5.08 Capital Return %
46 16 26 33 47 35 28 25 69 21 10 Total Rtn % Rank Cat
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Income $
0.00 3.08 0.00 0.00 0.00 0.00 0.00 1.00 2.79 2.70 0.00 Capital Gains $
1.29 1.22 1.29 1.39 1.30 1.21 1.11 1.05 1.02 . . Expense Ratio %
-0.56 -0.21 -0.12 -0.25 -0.21 0.00 -0.11 0.05 -0.13 . . Income Ratio %
124 72 121 108 103 80 50 32 33 . . Turnover Rate %
2,119 2,134 1,219 1,596 1,753 2,219 2,659 3,902 4,227 4,396 4,175 Net Assets $mil
Performance 01-31-16
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
2011 4.89 -0.50 -12.10 8.35 -0.60
2012 15.30 -5.46 7.60 -0.16 17.10
2013 9.54 1.48 10.68 10.77 36.28
2014 -0.23 2.85 0.78 4.94 8.52
2015 3.42 0.16 -4.61 8.40 7.11
Trailing Total
Return%
+/- Bmark
1
+/- Bmark
2
%Rank
Cat
Growth of
$10,000
3 Mo -4.99 1.72 1.19 4 9,501
6 Mo -6.10 1.08 0.67 6 9,390
1 Yr 3.73 2.41 4.39 5 10,373
3 Yr Avg 12.81 -0.21 1.51 18 14,356
5 Yr Avg 11.69 0.02 0.78 13 17,382
10 Yr Avg 7.92 0.20 1.44 10 21,437
15 Yr Avg 3.02 -0.45 3.52 64 15,624
Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated) 9.80 29 0.73 17
5 Yr (estimated) 9.89 18 0.44 14
10 Yr (estimated) 6.94 12 0.33 15
Potential Capital Gain Exposure: 29% of assets
Rating and Risk
Time
Period
Load-Adj
Return %
Morningstar
Rtn vs Cat
Morningstar
Risk vs Cat
Morningstar
Risk-Adj Rating
1 Yr -2.24
3 Yr 10.61 Avg -Avg QQQ
5 Yr 10.38 Avg -Avg QQQQ
10 Yr 7.29 +Avg -Avg QQQQ
Incept 7.88
Other Measures Standard Index Best Fit Index
Alpha 1.6 0.5
Beta 0.98 0.98
R-Squared 85 94
Standard Deviation 11.65
Mean 12.81
Sharpe Ratio 1.09
Portfolio Analysis 12-31-15
Total Stocks: 88
Share change since 11-30-15 Sector YTD Ret % % Assets
Visa Inc Class A Finan Svcs -3.95 3.98
Amazon.com Inc Cnsmr Cyc -13.15 3.89
TAlphabet Inc Class A Technology -2.14 3.75
Facebook Inc Class A Technology 7.21 3.36
MasterCard Inc Class A Finan Svcs -8.36 2.85
Alphabet Inc Class C Capi Technology — 2.80
Danaher Corp Industrl -8.89 2.60
TThermo Fisher Scientific Hlth Care -6.90 2.60
Adobe Systems Inc Technology -5.12 2.38
YApple Inc Technology -7.52 2.25
TAmerican Tower Corp Comm Svcs -5.88 2.19
Ross Stores Inc Cnsmr Cyc 4.55 2.05
YAllergan PLC Hlth Care -8.98 1.98
Intercontinental Exchange Finan Svcs 2.94 1.88
Salesforce.com Inc Technology -13.19 1.76
TMicrosoft Corp Technology -0.70 1.75
Bristol-Myers Squibb Comp Hlth Care -5.12 1.73
TStarbucks Corp Cnsmr Cyc 1.23 1.71
TCostco Wholesale Corp Cnsmr Def -6.43 1.66
YPriceline Group Inc Cnsmr Cyc -16.47 1.65
Current Investment Style
Large Mid Small
Value Blend Growth Market Cap %
Giant 39.8
Large 50.8
Mid 9.1
Small 0.3
Micro 0.0
Avg $mil:
64,351
Value Measures Rel Category
Price/Earnings 25.12 1.16
Price/Book 4.63 1.26
Price/Sales 2.79 1.17
Price/Cash Flow 18.65 1.34
Dividend Yield % 0.87 0.70
Growth Measures % Rel Category
Long-Term Erngs 14.21 1.11
Book Value 13.02 1.34
Sales 10.33 1.19
Cash Flow 10.69 0.91
Historical Erngs 12.54 1.01
Profitability %
Return on Equity 20.91
Return on Assets 9.28
Net Margin 14.86
Sector
Weightings
% of
Stocks
Rel
Bmark 1
h Cyclical 31.15 1.06
r BasicMat 3.71 1.24
t CnsmrCyc 16.48 0.86
y FinanSvcs 10.69 2.09
u Real Est 0.27 0.13
j Sensitive 39.16 0.93
i CommSrvs 5.01 0.93
o Energy 0.24 0.47
p Industrl 10.03 0.82
a Technlgy 23.88 0.99
k Defensive 29.68 1.05
s CnsmrDef 10.45 0.91
d Hlthcare 19.23 1.14
f Utilities 0.00 0.00
Composition - Net
Cash 2.6
Stocks 97.2
Bonds 0.0
Other 0.2
Foreign 2.6
(% of Stock)
Morningstar's Take by Andrew Daniels 12-16-15
MFS Growth has outperformed its average peer in the
largegrowthMorningstarCategory ineverycalendaryear
butonesincemanagerEricFischman took the lead inApril
2004. And even when the fund lagged in 2014, it returned
a solid 8.5%, although that trailed the Russell 1000
Growth Index’s 13.1% return and its average peer’s
10.0% gain. The fund has rebounded so far in 2015 as
several of 2014’s underperformers, such as Alphabet
GOOGL and Amazon AMZN, have rebounded.
The fund has delivered over the long term. Its 9.4%
annualized gain under Fischman's leadership through
November 2015 beats 86% of its large-growth peers and
exceeds the 8.4% annualized gain of the Russell 1000
Growth Index. It’s been a tad more volatile than most
rivals but has compensated investors with additional
returns and decent downside protection. The fund lost
48.6% in the bear market from October 2007 through
March 2009, but that was below the 52.6% hit taken by
its typical peer. The fund’s Sharpe ratio--a measure of
risk-adjusted returns--is 0.57, compared with the
benchmark’s 0.53, and beat 90% of its peers.
Fischman and comanager Matthew Sabel seek to
identify companies whose pricing power will produce
sustainable long-term earnings growth within a large
untapped market. The fund has held American Tower
AMT since 1998 based on the belief that the cell tower
company will benefit from an ever-increasing use of
mobile devices because it has established an
infrastructure that is difficult for competitors to replicate.
The team pays little attention to short-term earnings
figures, thus the portfolio's price multiples tend to run
higher than the Russell 1000 Growth Index's and its large-
growth peers. Instead, the team holds firms that they
believe are undervalued according to their internal long-
term outlook.
This fund’s managers have a clear vision of the type
of firm they’ll hold, assemble a diversified portfolio of
stocks, and stick to their knitting. This patient, methodical
approach has built an impressive track record over the
long term, earning the fund a Morningstar Analyst Rating
of Silver.
Address: MFS Series Trust II Minimum Purchase: $1000 Add: — IRA: $250
Boston, MA 2199 Min Auto Inv Plan: — Add: —
800-225-2606 Sales Fees: 5.75%L
Web Address: Management Fee: 0.75% mx./0.50% mn.
Inception: 09-13-93 Actual Fees: Mgt:0.62% Dist:0.25%
Advisor: Massachusetts Financial Services Co Expense Projections: 3Yr:$875 5Yr:$1098 10Yr:$1738
Subadvisor: None Income Distribution: Annually
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