Fund Evaluator:
MFS Lifetime 2040 R6 (MLFKX)
Follow This Fund
Best Performing in Target-Date 2040 Over the Last Year
| 28.5% | SP Funds 2040 Target Date Investor (SPTBX) |
| 21.0% | Fidelity Advisor Freedom Blend 2040 Z (FHHFX) |
| 20.4% | Fidelity Advisor Sust Trgt Dt 2040 Z (FSYDX) |
| 20.3% | Victory Target Retirement 2040 (URFRX) |
| 20.3% | Fidelity Advisor Sust Trgt Dt 2040 I (FSYBX) |
Fund Details
MFS Lifetime 2040 R6 Overview
MFS Lifetime 2040 R6 (MLFKX) is an actively managed Allocation Target-Date 2040 fund. MFS launched the fund in 2016.
The investment seeks a high level of total return consistent with its asset allocation until the approximate retirement year in 2040; thereafter, the fund will seek total return through a combination of current income and capital appreciation. The fund is designed to provide diversification among different asset classes for investors with the approximate retirement year in 2040. It invests substantially all of its assets in other MFS mutual funds, referred to as underlying funds.
About MFS Lifetime 2040 R6 (MLFKX)
There are 3 members of the management team with an average tenure of 4.59 years: Ben Nastou (2023), Natalie Shapiro (2018), Erich Shigley (2023). Management tenure is more important for actively managed funds than passive index funds.
The fund has 6 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100%, FTSE EPRA Nareit Developed NR USD index with a weighting of 4%, Bloomberg US Agg Bond TR USD index with a weighting of 17%, MSCI EAFE NR USD index with a weighting of 21%, S&P 500 (TR) (1970) index with a weighting of 52% and Bloomberg Commodity TR USD index with a weighting of 4%. MFS Lifetime 2040 R6 has 29 securities in its portfolio. The top 10 holdings constitute 55.3% 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 Lifetime 2040 R6 is part of the Allocation global asset class and is within the Allocation fund group. MFS Lifetime 2040 R6 has 29.5% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 51.5%. There is 21.4% allocated to foreign stock, and 0.1% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 26.5% (18.4% domestic bond, 8.1% foreign bond and 0.0% convertible bond). MFS Lifetime 2040 R6 has -3.1% of the portfolio in cash.
Assets Under Management
The fund has $442 million in total assets, which is below the $1 billion average for the Target-Date 2040 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.
MLFKX 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 Lifetime 2040 R6 expense ratio is average compared to funds in the Target-Date 2040 category. MFS Lifetime 2040 R6 has an expense ratio of 0.42%, which is 38% lower than its category average, making the fund expense ratio grade a B. 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 Lifetime 2040 R6 has a portfolio turnover rate of 13%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 22% for the Target-Date 2040 category.
Recently, in the month of July 2026, MFS Lifetime 2040 R6 returned 0.2%, which earned it a grade of A, as the Target-Date 2040 category had an average return of -0.8%. 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 Lifetime 2040 R6 has a trailing yield of 2.63%, which is above the 1.91% 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 Lifetime 2040 R6 Grades
Year to date, the fund has returned 9.7%, 0.9 percentage points better than the category, which translates into a grade of B. The fund has returned 16.2% over the past year (grade of D), 13.8% over the past three years (grade of D) and 8.0% per year over the past five years (grade of C) and 10.5% per year over the past 10 years (grade of B).
For more mutual fund grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.
Otherwise, for more information about MFS Lifetime 2040 R6, including its riskiness, submit your email to unlock the rest of the article.
Gain access to exclusive AAII member-only content.
MLFKX 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 |
|
| MLFKX Return (NAV) | 0.2% | 3.5% | 16.2% | 13.8% | 8.0% | 10.5% |
| MLFKX Grade | A | A | D | D | C | B |
| +/- Category | 1.0% | 0.7% | -1.0% | -0.4% | 0.2% | 0.5% |
| Target-Date 2040 Avg | -0.8% | 2.8% | 17.2% | 14.2% | 7.7% | 10.0% |
| MLFKX Tax Cost Ratio | na | na | 2.1% | 1.7% | 1.9% | na |
MLFKX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| MLFKX Return (NAV) | 9.7% | 15.2% | 12.5% | 16.5% | -15.1% | 19.1% | 13.3% | 26.3% | -7.5% | 20.9% | 9.1% |
| MLFKX Grade | B | F | D | F | A | A | D | A | B | B | A |
| +/- Category | 0.9% | -2.2% | -0.3% | -1.5% | 2.2% | 3.4% | -2.0% | 2.5% | 0.5% | 0.8% | 1.4% |
| Target-Date 2040 Avg | 8.8% | 17.4% | 12.8% | 17.9% | -17.4% | 15.7% | 15.3% | 23.8% | -7.9% | 20.1% | 7.8% |
| Risk Measures | |
| Standard Deviation: | 10.2% |
| Total Risk Index: | 0.83 - Average |
| Category Risk Index: | 0.96 - Below Average |
| Category Risk Grade: | B (22% Rank) |
| Beta: | 1.06 |
| R-Squared: | 94% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Large-Cap Blend |
| Bond Investment Style: | High Quality Moderate Sensitivity |
| Yield: | 2.6% |
| Dividend Distribution: | Annually |
| Cap Gains Distribution: | Annually |
| Total Assets: | $824 Mil |
| Fund Total Assets: | $ 442 Mil |
| Share Class Type: | Retirement |
| Portfolio Turnover: | 13% |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 7.9 years | |||
| Average Tenure: 4.6 years | |||
| Managers (Year): Shapiro Natalie (2018), Shigley Erich (2023), Nastou Ben (2023) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 29 |
| % in Top 10 Holdings: | 55.3% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 29.5% |
Portfolio Allocation |
|
| Domestic Stock: | 51.5% |
| Foreign Stock: | 21.4% |
| Preferred Stock: | 0.1% |
| Domestic Bond: | 18.4% |
| Foreign Bond: | 8.1% |
| Convertible Bond: | 0.0% |
| Other: | 3.6% |
| Cash: | -3.1% |
Purchase Information
| Fund Family: | MFS |
| Phone Number: | 800-225-2606 |
| Website: | http://www.mfs.com |
| Status: | Open |
| Inception Date: | August 29, 2016 |
| 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: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.42% ( Rating : Avg ) |
| Category Average Expense Ratio (%): | 0.67% |
| Share Class: | MFS Lifetime 2040 I |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
