MFS® Tennessee Municipal Bond Fund
Total Page:16
File Type:pdf, Size:1020Kb
Q2 | 2021 ® As of June 30, 2021 MFS Tennessee Municipal Fact Sheet Bond Fund Objective The fund seeks to provide double tax-free income (income that is exempt from federal and the Tennessee Seeks total return with an emphasis on Hall Income Tax) for in-state residents. Management seeks to drive performance through sector/security income exempt from federal income tax selection and quantitative analysis of the yield curve. and the Tennessee Hall Income Tax, if any, but also considering capital appreciation. Industries (%) Credit quality‡ Investment team (% of total net assets) Cash & Cash Equivalents Health/Hospi- AAA 4.2 Portfolio Manager (1.4) Michael Dawson tals (16.7) AA 35.2 Tax/Sale (3.1) 22 years with MFS A 29.9 32 years in industry Misc Rev/Other (3.8) Other BBB 18.7 Fund benchmark State & Local Approp (5.1) Industries (16.0) BB 1.7 Bloomberg Barclays Municipal CCC and Below 4.6 Bond Index Single Family Hsg/State Other Not Rated 4.2 Risk measures vs. benchmark (6.8) (Class I) General Municipal-Owned Utilities Alpha -0.33 Obligation/- (6.8) Beta 1.00 General Sharpe Ratio 0.44 Airport (7.6) Purpose (12.8) Standard Deviation 4.08 Universities/Colleges Water/Sewer Risk measures are based on a trailing 5 (8.2) (11.6) year period. Fund Symbol and CUSIP I MTNLX 55273N293 Growth of $10,000 Class I shares 04/01/16 – 06/30/21 R6 MPONX 55273N137 $10,000 Class I ending value $11,821 A MSTNX 55273N855 $8,000 $6,000 $4,000 $2,000 ‡ For all securities other than those specifically described below, ratings are $0 assigned to underlying securities utilizing 04/01/16 06/30/21 ratings from Moody's, Fitch, and Standard Past performance is no guarantee of future results. Fund returns assume the reinvestment of dividends and capital gain distributions. & Poor's rating agencies and applying the Class I shares are available without a sales charge to eligible investors. following hierarchy: If all three agencies Average annual total returns (%) provide a rating, the middle rating (after dropping the highest and lowest ratings) Inception Date 10 Year 5 Year 3 Year 1 Year is assigned; if two of the three agencies Class I 04/01/16 3.87 2.89 4.51 5.95 rate a security, the lower of the two is Class R6 08/01/17 3.90 2.96 4.62 6.14 assigned. If none of the 3 Rating Agencies Class A without sales charge 08/12/88 3.61 2.64 4.26 5.67 above assign a rating, but the security is Class A with 4.25% maximum sales charge 08/12/88 3.16 1.76 2.76 1.17 rated by DBRS Morningstar, then the DBRS Bloomberg Barclays Municipal Bond Index N/A 4.28 3.25 5.10 4.17 Morningstar rating is assigned. If none of the 4 ratings agencies listed above rate Performance data shown represent past performance and are no guarantee of future results. Investment return and principal the security, but the security is rated by value fluctuate so your shares, when sold, may be worth more or less than the original cost; current performance may be lower or the Kroll Bond Rating Agency (KBRA), then higher than quoted. For most recent month-end performance, please visit mfs.com. the KBRA rating is assigned. Ratings are Performance results reflect any applicable expense subsidies and waivers in effect during the periods shown. Without such subsidies shown in the S&P and Fitch scale (e.g., and waivers the fund's performance results would be less favorable. All results assume the reinvestment of dividends and capital gains. AAA). All ratings are subject to change. It is not possible to invest directly in an index. U.S. Government includes securities Performance for Class I shares includes the performance of the fund's Class A shares, adjusted to take into account differences in sales issued by the U.S. Department of the loads and class-specific operating expenses (such as 12b-1 fees), if any, for periods prior to their offering. Please see the prospectus for Treasury. Federal Agencies includes rated additional information about performance and expenses. and unrated U.S. Agency fixed-income Performance for Class R shares includes the performance of the fund's Class A shares, adjusted to take into account differences in sales securities, U.S. Agency MBS, and CMOs loads and class-specific operating expenses (such as Rule 12b-1 fees), if any, for periods prior to their offering. Please see the prospectus of U.S. Agency MBS. Other Not Rated for additional information about performance and expenses. includes fixed income securities which have not been rated by any rating agency. Class R6 shares are available without a sales charge to eligible investors. The portfolio itself has not been rated by any rating agency. NOT FDIC INSURED - MAY LOSE VALUE - NO BANK GUARANTEE Please see reverse for additional information. Fact Sheet | Q2 | 2021 MFS® Tennessee Municipal Bond Fund Glossary CALENDAR YEAR TOTAL RETURNS (%) Alpha is a measure of the portfolio's risk- '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 adjusted performance. When compared to the portfolio's beta, a positive alpha indicates Class I 10.37 8.24 -6.13 9.89 2.89 0.62 4.20 1.08 7.14 3.64 better-than-expected portfolio performance Bloomberg Barclays 10.70 6.78 -2.55 9.05 3.30 0.25 5.45 1.28 7.54 5.21 and a negative indicates alpha worse-than- Municipal Bond Index expected portfolio performance. Past performance is no guarantee of future results. Beta is a measure of the volatility of a portfolio relative to the overall market. A beta less than A small portion of income may be subject to state, federal, and/or alternative minimum tax. Capital gains, if any, are subject to a capital 1.0 indicates lower risk than the market; a beta gains tax. greater than 1.0 indicates higher risk than the market. It is most reliable as a risk measure FUND EXPENSES (%) FUND DATA when the return fluctuations of the portfolio are Class I Class R6 Class A Inception Date 08/12/88 highly correlated with the return fluctuations of Gross Expense Ratio 0.73 0.65 0.98 Net Assets $101.0 million the index chosen to represent the market. Net Expense Ratio 0.61 0.54 0.86 Number of Issues 202 Sharpe Ratio is a risk-adjusted measure Turnover Ratio 21% calculated to determine reward per unit of risk. Gross Expense Ratio is the fund's total operating expense ratio It uses a standard deviation and excess return. from the fund's most recent prospectus. Net Expense Ratio Avg. Eff. Maturity 15.0 years The higher the Sharpe Ratio, the better the reflects the reduction of expenses from contractual fee waivers Avg. Eff. Duration 5.9 years portfolio's historical risk-adjusted performance. and reimbursements. Elimination of these reductions will result Standard Deviation is an indicator of the in higher expenses and lower performance. These reductions will TOP 5 HOLDINGS portfolio's total return volatility, which is based Metropolitan Government of Nashville & Davidson County TN on a minimum of 36 monthly returns. The larger continue until at least July 31, 2021. Water & Sewer Revenue 5.000 JUL 01 32 the portfolio's standard deviation, the greater DISTRIBUTION STRUCTURE (%) the portfolio's volatility. Metro Gov Nash & Dav County Health & Edu Facs Bd TN Ref- HISTORY (CLASS I) Bonds 98.6 Turnover Ratio is the percentage of a Trevecca Nazarene Universi 5.000 OCT 01 48 Income Paid Monthly Cash & Cash portfolio's securities that have changed over 1.4 Shelby County Health Edu & Housing Facilities Brd TN the course of a year: (lesser of purchases or June $0.01927 Equivalents Methodist Le Bonheur Hlthcare- 5.000 MAY 01 35 sales)/average market value. May $0.02023 City of Memphis TN Storm Water System Revenue TN 5.000 Average Effective Maturity is a weighted April $0.01959 OCT 01 39 average of maturity of the bonds held in a portfolio, taking into account any prepayments, March $0.02014 Met Nashville & Davidson Cnty Health & Educ Facs Bd TN puts, and adjustable coupons which may Vanderbilt Univ Med Ctr-Ser A 4.000 JUL 01 47 shorten the maturity. Longer-maturity funds 9.6% of total net assets are generally considered more interest-rate sensitive than shorter maturity funds. Important risk considerations Average Effective Duration is a measure of The fund may not achieve its objective and/or you could lose money on your investment in the fund. n Bond: Investments in debt how much a bond's price is likely to fluctuate instruments may decline in value as the result of, or perception of, declines in the credit quality of the issuer, borrower, counterparty, with general changes in interest rates, e.g., if or other entity responsible for payment, underlying collateral, or changes in economic, political, issuer-specific, or other conditions. rates rise 1.00%, a bond with a 5-year duration Certain types of debt instruments can be more sensitive to these factors and therefore more volatile. In addition, debt instruments entail is likely to lose about 5.00% of its value. 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.