24 Oct

Inside the MFS Growth Fund Portfolio

WRITTEN BY David Ashworth FEATURED IN Active Management: Mutual Funds, Closed-End Funds, Hedge Funds

MFEGX: overview

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…and depositary receipts for such securities.”

The fund has a large-cap focus. Managers adopt a bottom-up approach while selecting securities for the portfolio and while liquidating stocks. They invest in those companies that, according to them, have above-average earnings growth potential.

The fund’s assets were invested across 87 holdings as of September 2016, and it was managing assets worth $12.9 billion as of the end of September. As of August, its equity holdings included Facebook, (FB), Thermo Fisher Scientific (TMO), Adobe Systems (ADBE), Danaher (DHR), and Intercontinental Exchange (ICE).

Inside the MFS Growth Fund Portfolio

Portfolio changes in MFEGX

Information technology, consumer discretionary, and healthcare sectors form the core of MFEGX, with a combined 73% of the fund’s net assets. The fund is not invested in the telecom services and utilities sectors.

We’ve looked at the quarterly sectoral composition of MFEGX for the past three years until September 2016. Three years ago, the tech sector also had the most investments, but tech now forms a much bigger chunk of the portfolio than it did three years ago. Although the consumer discretionary sector remains in second place, exposure to the sector has declined. Meanwhile, exposure to healthcare was rising until mid-2015, after which it has fallen.

But how has MFEGX performed so far in 2016, and what can its performance be attributed to? We’ll explore these questions in the next article.

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