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A Dependable Large-Value Fund With Low Costs

Laura Pavlenko Lutton

Laura Lutton: MFS Value (MEIAX) earns a Morningstar Analyst Rating of Silver for its proven management team, its long-term process, and its low price. The managers of this fund, Steven Gorham and Nevin Chitkara, have run the fund together since 2006. They are backed by a very strong team of analysts at MFS. Research is one of MFS' core competencies, and it really comes through with this fund.

The managers look for companies that are very well managed but are trading at a discount. Then, they buy in and they hold. Their average holding period is more than six years, which is much longer than the large-value category average. So, the managers are trading less, but they've delivered very strong returns over their tenure, particularly on a risk-adjusted basis.

Another factor that gives this fund a long-term edge is its expense ratio, which is 88 basis points for the A shares, which you purchase through an advisor. That contributes to the fund's long-term performance and keeps more dollars in your pocket. We think this is a solid core holding.