2 / 5 Stars
4 4 5 3 3
Zacks Investment Research
Standard & Poor's
4 / 5 Stars
#9 in Retirement Income
U.S. News evaluated 61 Retirement Income Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.
The fund has returned 4.51 percent over the past year and 5.57 percent over the past three years.
|Trailing Returns||Updated 03.31.2014|
|Year to date||1.4%|
|3 Years (Annualized)||5.6%|
|5 Years (Annualized)||10.1%|
|10 Years (Annualized)||N/A|
Intended for retirees looking to generate steady income while growing their nest egg, the MFS Lifetime Retirement Income fund rolls multiple stock and bond funds into a single investment, providing instant diversification.
As of April 22, 2014, the fund has assets totaling almost $332.50 million invested in 23 different holdings. Its portfolio remains fairly static and consists primarily of corporate and U.S. treasury bond funds, with a smaller share in domestic and foreign stock funds. Recently, the fund added a global real estate fund and a commodity fund for additional diversification.
The Lifetime Retirement Income Fund is the final and most conservative fund in MFS's lineup of target-date retirement income funds. Other products in the Lifetime Funds series include the Lifetime 2010, 2020, 2030, 2040, and 2050 funds. The fund is designed to appeal to investors who need growth but also more security, fund manager Joe Flaherty says.
The built-in diversification allows investors to buy one fund, but actually invest in 19 underlying MFS-managed stock and bond funds, each with varying goals and market positions.
The fund's performance has been solid since its 2005 launch. In 2010, strong performance from its equity investments in mid-cap value and growth funds gave the fund a boost. Its research bond fund, which capitalizes on the collective wisdom of MFS's bond analysts, also contributed to gains. It returned 4.51 percent over the past year and 5.57 percent over the past three years, outperforming both its benchmark and category.
This fund seeks to provide a steady stream of income for retirees and holds an array of underlying MFS funds to maximize diversification. "This fund is intended to be a strategic allocation, we're not moving in response to the markets," Flaherty says. "It's an efficiently diversified mix of assets at the top level and at the fund level so we're getting that second layer of diversification."
Role in Portfolio
Morningstar calls this fund a "core" investment.
MFS senior vice president Joseph Flaherty, Jr. has overseen the fund since its launch in 2005. The firm has a strong research operation and boasts many seasoned portfolio managers and analysts.
MFS® Lifetime® Retirement Income Fund has an expense ratio of 0.25 percent.
As with other retirement income products, this fund is not a guaranteed source of income.