Fund Evaluator:

MFS Global New Discovery R2 Overview

MFS Global New Discovery R2 (GLNKX) is an actively managed International Equity Global Small/Mid Stock fund. MFS launched the fund in 2011.

The investment seeks capital appreciation. The fund normally invests its assets primarily in U.S. and foreign equity securities, including emerging market equity securities. Equity securities include common stocks, equity interests in REITs, and other securities that represent an ownership interest in a company or other issuer. MFS normally invests the fund's assets across different industries, sectors, countries, and regions, but it may invest a significant percentage of the fund's assets in issuers in a single industry, sector, country, or region. MFS uses an active bottom-up investment approach to buying and selling investments for the fund.

About MFS Global New Discovery R2 (GLNKX)

There are 4 members of the management team with an average tenure of 10.10 years: Michael Grossman (2013), Sandeep Mehta (2019), Eric Braz (2019), Peter Fruzzetti (2011). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: MSCI ACWI NR USD index with a weighting of 100% and MSCI ACWI SMID NR USD index with a weighting of 100%. MFS Global New Discovery R2 has 118 securities in its portfolio. The top 10 holdings constitute 15.2% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

MFS Global New Discovery R2 is part of the Equity global asset class and is within the International Equity fund group. MFS Global New Discovery R2 has 51.4% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 45.0%. There is 51.4% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). MFS Global New Discovery R2 has 3.6% of the portfolio in cash.

Assets Under Management

The fund has $169 million in total assets, which is below the $892 million average for the Global Small/Mid Stock category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

GLNKX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The MFS Global New Discovery R2 expense ratio is high compared to funds in the Global Small/Mid Stock category. MFS Global New Discovery R2 has an expense ratio of 1.60%, which is 27% higher than its category average, making the fund expense ratio grade a F. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. MFS Global New Discovery R2 has a portfolio turnover rate of 47%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 57% for the Global Small/Mid Stock category.

Recently, in the month of July 2026, MFS Global New Discovery R2 returned 0.2%, which earned it a grade of B, as the Global Small/Mid Stock category had an average return of -2.0%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

MFS Global New Discovery R2 has a trailing yield of 0.16%, which is below the 1.34% category average. The fund normally distributes its income annually and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

MFS Global New Discovery R2 Grades

Year to date, the fund has returned 7.5%, 3.4 percentage points worse than the category, which translates into a grade of D. The fund has returned 7.2% over the past year (grade of F), 6.7% over the past three years (grade of D) and 0.4% per year over the past five years (grade of D) and 7.7% per year over the past 10 years (grade of D).

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