As of Sept. 30, 2026, MFS projected that MFS Growth would pay a distribution of more than 30% of the fund’s net asset value. It’s anticipated that all the distributions will be from long-term capital gains, which will ease the tax bill a little bit, but investors holding the fund in a taxable account should anticipate an abnormally large tax bill. Outflows were the main driver of the distribution since client withdrawals require the managers to sell holdings and realize capital gains. Morningstar estimates that the fund had nearly USD 7.5 billion in outflows in the year to date through September 2026, roughly 17% of the assets the fund had at the end of 2025. In 2026, the managers trimmed longtime winners such as Amazon.com (first bought in 2012), Apple (2006), and Microsoft (2015) and sold CoStar (2018) and Take-Two Interactive Software (2019), which likely contributed to the large distribution.
Process Pillar
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable MEGRX’s performance objective and investment process is for both security selection and portfolio construction.
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