MFS Growth Fund
According to the fund’s managers, the MFS Growth Fund – Class A (MFEGX) “invests the fund’s assets primarily in equity securities. Equity securities include common stocks, preferred stocks, securities convertible into stocks, equity interests in real estate investment trusts (REITs), and depositary receipts for such securities.”
MFEGX has a large-cap focus. Managers adopt a bottom-up approach while selecting securities for the portfolio and liquidating stocks. They invest in those companies that, in their view, have above-average earnings growth potential.
The fund’s assets were invested across 90 holdings as of November 2015, and it was managing $11.91 billion in assets as of the end of November. As of November, MFEGX’s top ten equity holdings included Facebook (FB), Danaher Corp. (DHR), Thermo Fisher Scientific, Inc. (TMO), and Adobe Systems Incorporated (ADBE). The top holdings formed 30.4% of the fund’s November portfolio.
For this analysis, we will consider the fund’s holdings as of October 2015. The post-October holdings reflected the valuation-driven changes to the portfolio, not the actual holdings.
Fund managers of MFEGX have bet on stocks from the information technology and consumer discretionary sectors, in that order, as the ones that provide the highest growth potential. Combined, these two sectors form over half of the fund’s portfolio. Healthcare is the third-largest sector and forms a little over 17% of the portfolio. The fund does not invest in the telecom services and utilities sectors.
Looking at the fund’s portfolio since November 2014, fund managers have increased exposure to the information technology and consumer staples sectors. Meanwhile, its exposure to healthcare has decreased. Energy exposure has been reduced to a minimum, and there was little change in exposure to the consumer discretionary, industrials, and materials sectors.
How has the fund’s portfolio positioning impacted its YTD 2015 returns? Let’s look at that in the next article.
The JPMorgan Large Cap Growth Fund's assets were invested across 68 holdings in stocks, bonds, and cash as of November 2015. It managed $16.03 billion in assets as of the end of November.
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