Fund Evaluator:
MFS Government Securities R3 (MFGHX)
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Best Performing in Intermediate Government Over the Last Year
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Fund Details
MFS Government Securities R3 Overview
MFS Government Securities R3 (MFGHX) is an actively managed Taxable Bond Intermediate Government fund. MFS launched the fund in 2005.
The investment seeks total return with an emphasis on current income, but also considering capital appreciation. The fund normally invests at least 80% of its net assets in U.S. government securities. It generally invests substantially all of its assets in investment grade quality debt instruments. The fund may invest a significant percentage of the fund's assets in a single issuer or a small number of issuers.
About MFS Government Securities R3 (MFGHX)
There are 1 members of the management team with an average tenure of 7.92 years: Jake Stone (2018). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and Bloomberg US Govt/Mortgage TR USD index with a weighting of 100%. MFS Government Securities R3 has 819 securities in its portfolio. The top 10 holdings constitute 61.0% 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 Government Securities R3 is part of the Fixed Income global asset class and is within the Taxable Bond fund group. MFS Government Securities R3 has 1.1% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 144.6% (143.5% domestic bond, 1.1% foreign bond and 0.0% convertible bond). MFS Government Securities R3 has -44.6% of the portfolio in cash.
Assets Under Management
The fund has $14 million in total assets, which is below the $942 million average for the Intermediate Government 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.
MFGHX 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 Government Securities R3 expense ratio is above average compared to funds in the Intermediate Government category. MFS Government Securities R3 has an expense ratio of 0.77%, which is 26% higher than its category average, making the fund expense ratio grade a D. 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 Government Securities R3 has a portfolio turnover rate of 139%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 99% for the Intermediate Government category.
Recently, in the month of July 2026, MFS Government Securities R3 returned -1.3%, which earned it a grade of D, as the Intermediate Government category had an average return of -1.2%. 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 Government Securities R3 has a trailing yield of 3.64%, which is above the 3.55% category average. The fund normally distributes its income monthly 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 Government Securities R3 Grades
Year to date, the fund has returned -1.2%, 0.1 percentage points worse than the category, which translates into a grade of D. The fund has returned 1.9% over the past year (grade of D), 2.9% over the past three years (grade of D) and -0.9% per year over the past five years (grade of D) and 0.5% per year over the past 10 years (grade of D).
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MFGHX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| MFGHX Return (NAV) | -1.3% | -1.1% | 1.9% | 2.9% | -0.9% | 0.5% |
| MFGHX Grade | D | D | D | D | D | D |
| +/- Category | -0.1% | -0.1% | -0.1% | -0.2% | -0.2% | -0.2% |
| Intermediate Government Avg | -1.2% | -1.0% | 2.0% | 3.1% | -0.8% | 0.7% |
| MFGHX Tax Cost Ratio | na | na | 1.4% | 1.4% | 1.2% | 1.0% |
MFGHX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| MFGHX Return (NAV) | -1.2% | 6.7% | 0.3% | 3.9% | -12.3% | -2.2% | 6.3% | 6.1% | 0.3% | 1.9% | 0.6% |
| MFGHX Grade | D | C | D | C | C | C | D | C | D | C | D |
| +/- Category | -0.1% | -0.2% | -0.4% | 0.2% | -0.5% | -0.1% | -0.9% | 0.2% | -0.2% | 0.1% | -0.2% |
| Intermediate Government Avg | -1.1% | 6.9% | 0.7% | 3.8% | -11.8% | -2.0% | 7.2% | 5.9% | 0.5% | 1.8% | 0.8% |
| Risk Measures | |
| Standard Deviation: | 5.7% |
| Total Risk Index: | 0.46 - Low |
| Category Risk Index: | 1.06 - High |
| Category Risk Grade: | F (86% Rank) |
| Beta: | 1.00 |
| R-Squared: | 99% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | High Quality Moderate Sensitivity |
| Yield: | 3.6% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $1904 Mil |
| Fund Total Assets: | $ 14 Mil |
| Share Class Type: | Retirement |
| Portfolio Turnover: | 139% |
Management Team
| Number of Managers: 1 | |||
| Longest Tenure: 7.9 years | |||
| Average Tenure: 7.9 years | |||
| Managers (Year): Stone Jake (2018) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 819 |
| % in Top 10 Holdings: | 61.0% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 1.1% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 143.5% |
| Foreign Bond: | 1.1% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | -44.6% |
Purchase Information
| Fund Family: | MFS |
| Phone Number: | 800-225-2606 |
| Website: | http://www.mfs.com |
| Status: | Open |
| Inception Date: | April 1, 2005 |
| Min. Initial Purchase: | $ 0 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | 0.25% |
Expenses and Fees | |
| Expense Ratio (%): | 0.77% ( Rating : Above Avg ) |
| Category Average Expense Ratio (%): | 0.61% |
| Share Class: | MFS Government Securities A |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
