2 MFS Lifetime Retirement Income A Fund (MLLAX) “This is not a passive index fund, so the sales load [of 5.75%] is high to take advantage of the fund manager’s expertise in active fund management,†says Slaughter. “I think this fund is more advantageous for aggressive investors preparing for retirement three years out.†The fund benefits from a double layer of diversification by investing in related MFS funds including the MFS Research Bond, MFS Government Securities, and MFS Inflation Adjusted Bond. Roughly 71% of the fund’s holdings are in quality bonds, nearly 20% in U.S. stock, and 5% in foreign stock which meshes well with other types of retirement holdings. The fund, which has a 4 out of 5 Lipper Total Return rating, has a conservative trading method, and an annual stock turnover rate of 20%. Top equity holdings include Apple Inc., Exxon Mobil Corp., Google Inc., Target Corp., and Nestle.
Net assets: $151.83 million
1-year return: 5.17%
3-year return: 14.27%
5-year return: 5.97%
YTD return: 4.57%
Dividend yield: 3.02%
Min. initial investment: $1,000
Sales Load: 5.75% load
Expense Ratio: 0.28%
(Continued on next page)