MFS Diversified Income Fund Class A (DIVATX)

Overview

The fund is designed to strategically allocate its assets primarily across a diverse array of debt instruments and equity securities from both U.S. and international issuers. This includes investments related to real estate and securities from emerging markets. MFS prioritizes high-quality debt investments, ensuring that a significant portion of its portfolio consists of corporate bonds with investment-grade ratings, securities issued by the U.S. government, as well as lower-rated debt instruments from developed markets and emerging markets. Notably, MFS has the flexibility to allocate up to 100% of its investments in debt instruments that are classified as below investment grade quality.

Products and Services

• Debt Instruments

  The fund primarily invests in a wide variety of debt instruments, ensuring a well-balanced and diversified portfolio. This includes investment-grade corporate bonds, which are less risky and tend to provide more stable returns, as well as lower-rated, higher-yielding bonds that can contribute to higher potential returns despite carrying more risk.

• Equity Securities

  The fund also invests in equity securities, which represent ownership in companies. This can include stocks from both established and emerging market firms, allowing for capital appreciation opportunities in various sectors and regions, thus diversifying the risk associated with investing in a singular market segment.

• Real Estate-related Investments

  Investments related to real estate offer additional avenues for returns through property and real estate asset engagement. This can include Real Estate Investment Trusts (REITs) or direct property investments, which can help to hedge against inflation and provide potentially lucrative income streams.

• Emerging Market Securities

  Investing in emerging market securities allows access to rapid growth opportunities that are often not available in developed markets. These securities can provide higher returns but also come with increased volatility and risk, which the fund is strategically prepared to manage.

• Below Investment Grade Debt Instruments

  MFS may allocate a significant portion of its investments to below investment grade debt instruments. This strategic decision aims at capturing higher yields typically associated with these riskier debt instruments, with careful monitoring and management of associated risks to maintain overall portfolio stability.