Calm, Cool and Invested - MFS Investment Management

CALM, COOL AND INVESTED Staying on track to live the life you want

This brochure provides year-end performance. When data for subsequent quarters are available, the brochure must be accompanied by a performance supplement insert.

NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE

DO YOU FIND YOURSELF ASKING THESE QUESTIONS? When it comes to planning for your future, does this sound like you? • Will I outlive my money? • Is it too late to start investing? • What if I pick the wrong investments? • What if I have no idea what I’m doing? No matter where you are in life or in building a financial strategy, the key is to have a financial plan. Investing your money today could give it more opportunity to grow for tomorrow.

A FINANCIAL ADVISOR CAN HELP.

page 1

WHERE DO I GO FROM HERE? Did you know an advisor can work with you to create a plan based on the goals you have in mind? Then together you’ll address topics that are important to achieving the life you want to live.

STAYING AHEAD OF INFLATION

MY GOALS

MY ADVISOR

DETERMINING THE RIGHT ALLOCATIONS

STAYING THE COURSE

page 2

MY PLAN

page 3

CREATE A PLAN

WHY SHOULD I WORRY ABOUT INFLATION? When the value of the money you saved for retirement falls and you need more dollars in order to maintain the same standard of living you enjoyed previously, that’s called inflation. When planning for your long-term goals, ideally you want your rate of return to be higher than the inflation rate. Let’s compare the average prices of a gallon of gasoline, a gallon of milk and a year’s public college tuition in 1970 to 2017.

How inflation shrinks money (U.S. averages)

INFLATION

INFLATION

520

INFLATION

139

%

2,740

%

%

1970

1970

$

0.40

$

2017

$

2.48

Gallon of gasoline

1.32 2017

$

3.16

Gallon of milk

After tax, the rate of interest you earn on your savings must be greater than the rate of inflation, in order for your money to actually be growing.

Sources: 1970 — inthe70s.com/prices.shtml, National Center for Education Statistics. 2017 — Bureau of Labor Statistics bls.gov, US Energy Information Administration forecast. page 4

$

1970

351 2017

$

9,970

Public college tuition

CREATE A PLAN

WHY SHOULD I START INVESTING NOW?

The Rule of 72 is a simple way to quickly estimate how long it will take your money or investment to double.*

Starting to save and invest as early as possible may help you get the most benefit from your investment. The key is the power of compounding, which is the ability to increase the value of an investment as a result of earning interest on your initial investment and on the accumulated interest. In other words, compounding refers to earnings made on top of previous earnings. The chart below illustrates how money left alone in a long-term investment could compound as years pass. Hypothetical $1,000 investment with compounded yearly returns

$45,259

10% rate of return† 6% rate of return† 3% rate of return†

$10,286

72/10 = 7.2; investment will double every 7 years 7 years = $1,949 14 years = $3,797 21 years = $7,400

72/6 = 12; investment will double every 12 years 12 years = $2,012 24 years = $4,049

$17,449

$5,743 $6,727 $3,207 $1,806 20 YEARS

$3,262

$2,427

30 YEARS

72/3 = 24 investment will double every 24 years 24 years = $2,033

40 YEARS

Source: thecalculatorsite.com. * The Rule of 72 formula: 72 ÷ rate of return = number of years to double your investment. † Assumed rate of return. This example is for illustrative purposes only and are not intended to predict the returns of any investment choices. Rates of return will vary over time, particularly for long-term investments. There is no guarantee the selected rate of return can be achieved. The performance of the investments will fluctuate with market conditions. Regular investing does not ensure a profit or protect against loss in declining markets. Investors should consider their ability to continue purchasing shares during periods of low price levels. Does not represent the performance of any MFS fund, which would vary according to the rise and the fall of the markets. It is not realistic that the stock market or any investment vehicle will have 20 years of positive returns. page 5

CREATE A PLAN

HOW CAN I FIGHT INFLATION?

IMPORTANCE OF INVESTING FOR THE LONG TERM

A number of investments may help fight inflation and provide a varying level of return, as illustrated below. $1 invested from 1/78* to 12/17 STOCKS - S&P 500 Stock Index

US BONDS - Bloomberg Barclays U.S. Aggregate Bond Index

$

17.18 7.37%

ANNUAL RETURN

CASH - Citigroup 3-Month Treasury Bill Index

$

6.30 4.71%

ANNUAL RETURN

INFLATION - Consumer Price Index

$

3.97

3.51%

ANNUAL RETURN

What is a bond? Also known as a fixed income security, a bond is a debt instrument created for the purpose of raising capital. Owning bonds helps to diversify a portfolio, as the bond market doesn’t rise or fall alongside the stock market.

LESS RISKY Source: SPAR, Bureau of Labor Statistics. Stock returns have typically been more volatile than those of bond securities. The S&P 500 Stock Index measures the broad US stock market. The Bloomberg Barclays U.S. Aggregate Bond Index measures the US bond market. The Citigroup 3-Month Treasury Bill Index is derived from secondary-market Treasury bill rates published by the US Federal Reserve Bank. The Consumer Price Index (CPI) is a measure of inflation. It is not possible to invest directly in an index. Index performance does not take into account investment-related fees and expenses. The index did not have a positive return for the entire time period shown. * The starting date of 1/78 is tied to the start of the Citigroup Benchmark. page 6

HOW DO WE BUILD A PLAN? To build a plan, we need to start with determining your asset allocation — how you spread out your money among stocks, bonds and cash. This may be the most important decision you’ll make about your investments. Based on your overall comfort level with risk, your financial advisor can help you create a strategic plan.

ADR

1. ALLOCATE $

87.50 11.83%

ANNUAL RETURN

assets across the major asset classes to help you pursue the optimal returns for the risk level you are willing to undertake.

2. DIVERSIFY within each asset class to take advantage of different investment styles and various market sectors so strong performance in one area minimizes downturns in another. What is a stock? Also known as an equity, a stock is a share in the ownership of a company. Corporations raise capital by issuing stocks and entitling the stockowners (shareholders) to partial ownership of the corporation. The decision about which stock to buy is based on an investor’s investment objectives.

MORE RISKY

3. REBALANCE periodically to ensure that your plan remains in sync with your risk tolerance and to maintain your desired allocation. ADR is easy to put into practice, particularly if you invest in mutual funds, which can take all three ADR steps professionally, strategically and automatically for you. Asset allocation, including ADR, does not guarantee a profit or protect against a loss. page 7

CREATE A PLAN

HOW DO ALLOCATION AND DIVERSIFICATION WORK? With a well-diversified portfolio, you may not have to worry as much about being in the right place at the right time. Annual asset class and a sample diversified portfolio returns 1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Large Cap Growth 38.71%


Commodities 31.84%

REITs 15.50%

Commodities 25.91%

Small/ Mid Cap 45.51%

REITs 30.41%

Commodities 21.36%

REITs 34.35%

Commodities 16.23%

Global Bonds 12.00%

International 20.33%


REITs 25.89%

Bonds 8.44%

Global Bonds 19.37%






Bonds 5.24%

Large Cap Value 15.63%

Commodities 24.35%

Bonds 11.63%

Cash 4.09%

Bonds 10.25%

REITs 38.47%

Small/Mid Cap 18.29%

REITs 8.29%



Cash 1.80%

Global Bonds 15.31%

Small/Mid Cap 24.14%


Small/Mid Cap 1.22%

REITs 5.22%



Small/Mid Cap 8.11%


Global Bonds 10.81%

Diversified Diversified Portfolio Portfolio –26.72% -26.77%

Bonds 8.69%

Diversified Diversified Portfolio Portfolio 13.07% 13.03%

Cash 5.96%

Global Bonds –0.79%

Cash 1.70%




Diversified Diversified Portfolio 15.00% 14.94%

Bonds 6.97%

Commodities –35.65%




Diversified Diversified Portfolio Portfolio -5.01% –4.98%

Diversified Diversified Portfolio Portfolio -2.57% –2.53%


Global Bonds 10.10%




Small/ Mid Cap –36.79%

Cash 5.06%

Cash 4.74%

Small/Mid Cap 4.27%

Large Cap Value –5.59%


Commodities 23.93%

Commodities 9.15%


Global Bonds 5.94%

Cash 4.74%



Bonds –0.82%

Global Bonds 2.34%


International –15.66%

Global Bonds 14.51%


Cash 3.00%

Cash 4.76%


REITs –37.34%

REITs –18.82%



Large Cap Growth –20.42%

Small/Mid Cap –17.80%

Bonds 4.10%

Bonds 4.34%

Bonds 2.43%

Bonds 4.33%




REITs –6.48%




Cash 1.07%

Cash 1.24%


Commodities 2.07%

REITs –17.83%


About the chart: The historical performance of each index cited is provided to illustrate market trends; it does not represent the performance of a particular investment product. Index performance does not reflect the deduction of any investment-related fees and expenses. It is not possible to invest directly in an index. The Diversified Portfolio: Equal allocations among the market segments are represented by the various market indices defined herein (excludes cash). Note that the portfolio’s assets were rebalanced at the end of every quarter to maintain equal allocations throughout the period.

page 8

0.59 3.36 6.54 10.56 14.92 16.27 16.62 17.09 18.40 19.52

Cash1 Bonds2 Global bonds3 Diversified portfolio Large-cap value stocks4 Commodities5 International stocks6 Large-cap growth stocks7 Small-/Mid-cap stocks8 REITs9

2010

2011

2012

2013

2014

2015

2016

2017

AVERAGE


REITs 27.58%

Bonds 7.84%

REITs 20.14%


REITs 27.15%







REITs 7.28%




REITs 2.29%



REITs 8.67%


Commodities 16.83%

Global Bonds 7.22%




Bonds 0.55%

Commodities 11.77%



REITs 27.45%






Cash 0.03%

REITs 9.28%








Bonds 5.97%


Diversified Portfolio 8.67%


Diversified Diversified Portfolio Portfolio 8.% 6.72%



Cash 0.08%


REITs 3.21%




REITs 9.27%

International 5.25%

Commodities 18.91%

International 8.21%


Bonds 4.21%

Cash 0.05%

Global Bonds 0.67%


Bonds 2.65%

Global Bonds 6.83%

Bonds 4.98%

Bonds 5.93%

Bonds 6.54%


Global Bonds 1.30%

Bonds –2.02%

Cash 0.03%

Diversified Diversified Portfolio Portfolio 5.39% –3.25%

Global Bonds 1.57%

Bonds 3.54%

Global Bonds 4.60%

Global Bonds 1.90%

Global Bonds 6.42%


Cash 0.07%




International 1.51%

Commodities 1.70%

Cash 1.97%

Cash 0.16%

Cash 0.13%






Cash 0.27%

Cash 0.84%

Commodities 0.76%

The Citigroup 3-Month Treasury Bill Index is derived from secondary market US Treasury bill rates published by the US Federal Reserve Bank. 2 The Bloomberg Barclays U.S. Aggregate Bond Index measures the US bond market. 3 The JPMorgan Global Government Bond Index (Unhedged) measures government bond markets around the world. 4 The Russell 1000® Value Index measures large-cap US value stocks. 5 The Bloomberg Commodity Index is composed of futures contracts on physical commodities. 1

The MSCI EAFE Index measures the non-US stock market. The Russell 1000® Growth Index measures large-cap US growth stocks. 8 The Russell 2500TM Index measures small- and mid-cap US stocks. 9 The FTSE NAREIT All REITs Total Return Index tracks the performance of commercial real estate across the US economy. 10 Standard deviation is an indicator of the portfolio’s total return volatility, which is based on a minimum of 36 monthly returns. The larger the portfolio’s standard deviation, the greater the portfolio’s volatility. 6 7

page 9

ANNUAL RETURNS

2009

BEST

•

WORST

Market segment and annualized standard deviations10 – 20 years ended 12/31/17

CREATE A PLAN

WHY SHOULD WE REBALANCE? The markets continually change — and over time those changes can alter your portfolio’s mix of investments. Rebalancing can bring your mix of investments back in line with your risk tolerance.

Rebalance to maintain your portfolio’s desired allocation

STOCKS WERE STRONG1

50% 38% 62% 38% 50 50% 50% 50% 62% 50% 50% 50% 29%

1/1/03–10/9/07 market activity

STOCKS

Too risky: Without rebalancing, this hypothetical portfolio would have experienced greater volatility when the stock market declined in 2008.

BONDS

STOCKS

BONDS STOCKS

Original allocation balanced on 1/1/03

BONDS

STOCKS

STOCKS BONDS

BONDS

STOCKS

Unbalanced on 10/9/07, a stock market high

1 BONDS WERE STRONG50% 50% 50% 50% 50% 50% 50% 50% 29% 71% 29% 71% 62% 38% 62% 38% 10/10/07–3/9/09 market activity STOCKS BONDS STOCKS BONDS STOCKS BONDS STOCKS

BONDS

Too conservative: This hypothetical portfolio would have missed out on strong stock performance in 2009.

STOCKS

BONDS

STOCKS

STOCKS BONDS

BONDS

Original allocation Balanced on 10/10/07

STOCKS

BONDS

Unbalanced on 3/9/09, a stock market low

1 Time periods above, reflecting a strong stock market and a strong bond market, respectively, are based on performance of the following indices: Stocks are represented by the S&P 500 Stock Index, which measures the broad US stock market. Bonds are represented by the Bloomberg Barclays U.S. Aggregate Bond Index. Index performance does not reflect the deduction of any investment-related fees and expenses. It is not possible to invest directly in an index. 2 Hypothetical examples are for illustrative purposes only and are not intended to represent the past or future performance of any MFS product. Hypothetical examples do not reflect tax consequences of buying and/or selling securities. For purposes of this comparison on the right, we have divided the overall market into the following eight indices — the Bloomberg Barclays U.S. Aggregate Bond Index measures the US bond market. The MSCI EAFE Index measures the non-US stock market. The Russell 1000® Growth Index measures large-cap US growth stocks. The Russell 1000® Value Index measures large-cap US value stocks. The Russell 2500™ Index measures US small- and mid-cap stocks. The FTSE NAREIT All REITs Total Return Index tracks the performance of commercial real estate across the US economy. The JPMorgan Global Government Bond Index (Unhedged) measures government bond markets around the world. The Bloomberg Commodity Index is composed of futures contracts on physical commodities. Index performance does not reflect the deduction of any investment-related fees and expenses. It is not possible to invest directly in an index.

page 10

BON STOC

WHAT ARE THE BENEFITS OF ADR? Trying to time the market and chase investment returns may leave you with little to show for it. When you allocate, diversify and rebalance, you can pursue your goals with a smart, long-term investment strategy based on your specific goals, time horizon and tolerance for risk. Each hypothetical investor below followed a different strategy for investing $1,000 each year over a 20-year period ($20,000 total from 1/1/98 through 12/31/17). Market timing vs ADR2 PRACTICED ADR

$42,776

CHASED PERFORMANCE

$38,911 INVESTOR #1

Each year he invested in the previous year’s best-performing market segment.

WENT FOR THE REBOUND

$37,007 INVESTOR #2

Each year he invested in the previous year’s worst-performing market segment, hoping for a rebound the next year.

INVESTOR #3

As part of her overall retirement income strategy, she remained equally invested in eight different asset classes each year. She also worked with her advisor to rebalance her portfolio’s assets each quarter so that they stayed equally distributed among the asset classes.

How do I get started using a mutual fund?

What is a mutual fund?

A mutual fund is an affordable way to purchase a portfolio of stocks, bonds or other securities that would be difficult to purchase individually. This includes professional portfolio management and analysts with the expertise and research and technology resources to make investment decisions. With the goals you have in mind and your level of risk tolerance, you may be unsure which investments are appropriate for you. You may want to consider mutual funds. Your financial advisor can help you assemble the right asset mix for your portfolio. page 11

CREATE A PLAN

MEET MARGIE REEDY, ON HER WAY TO RETIREMENT Like many investors preparing for retirement, Margaret (Margie) Reedy discussed strategies with her financial advisor and came to the decision that, as part of her retirement portfolio, she would invest $250 a month in a mutual fund called MFS® Total Return Fund. Her advisor mentioned that because she would be dollar-cost averaging into a balanced strategy that invests in both stocks and bonds, her account value would fluctuate with market conditions.

Growth of hypothetical $250 monthly systematic investments in MFS Total Return Fund, Class A, (1/1/72–12/31/98).* $700,000

ACCOUNT VALUE

$525,000

$350,000

$175,000

$0 1972 1972

1973 1973

1974 1974

1975 1975

1976 1976

1977 1977

1978 1978

1979 1979

1980 1980

1981 1981

1982 1982

1983 1983

1984 1984

1985 1985

1 19

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,000

3,

Fund at NAV

7.24

-11.30

-11.17

29.21

28.57

1.91

0.81

11.37

19.53

3.84

28.59

19.10

6.90

30.22

19

With max 5.75% sales charge

1.08

-16.40

-16.28

21.78

21.18

-3.95

-4.99

4.97

12.66

-2.13

21.20

12.25

0.75

22.74

12

2,981

5,330

7,438

12,738

19,625

22,869

25,886

31,767

41,154

45,644

62,202

77,152

New investment

Total return (%)

Cash account

Market value ($) Fund Cash account

AVERAGE ANNUAL RETURNS (%)

FUND INFORMATION, CLASS A, AS OF 12/31/17

MFS Total Return Fund, without sales charge with maximum 5.75% sales charge

INCEPTION

10/06/70

85,595 114,780 140

EXPENSE RATIOS (%) EXPENSE RATIOS (%) 12/31/17 1/31/18

1 YR.

3 YR.

5 YR.

10 YR.

GROSS

NET

GROSS

NET

12.16

6.75

9.39

5.97

0.74

0.74

0.73

0.73

5.71

4.66

8.10

5.34

0.74

0.74

0.73

0.73

The use of a systematic investing program does not guarantee a profit or protect against a loss in declining markets. You should consider your financial ability to continue to invest through periods of low prices. This material is provided for general and educational purposes only and is not investment advice. The investments you choose should correspond to your financial needs, goals, and risk tolerance. Please consult an investment professional before making any investment or financial decisions or purchasing any financial, securities or investment related service or product, including any investment product or service described in these materials. page 12

In 1924, MFS created the nation’s first mutual fund, bringing Wall Street to Main Street — making investing affordable for the average American. Now, more than 90 years later, 12,000+ mutual funds covering a wide range of asset classes are woven into the fabric of American life, helping investors pursue dreams of educating their children and enjoying comfortable retirements.

After investing $81,000 through dollarcost averaging over 27 years into MFS Total Return Fund (A), Margie has accumulated $675,082 in retirement assets.

If Margie reacted to volatility and left the market in October of 1987 and moved to cash, her account would be worth $314,288.

1986 986

1987 1987

1988 1988

1989 1989

1990 1990

1991 1991

1992 1993 1993 1994 1994 1995 1995 1996 1996 1997 1997 1998 1998 1992

RESULTS

,000

3,000

3,000

3,000

3,000

3,000

3,000

81,000

3,000

3,000

3,000

3,000

3,000

3,000

9.85

3.53

15.03

23.06

-2.33

21.62

10.07

15.13

-2.64

26.91

14.60

20.67

11.91

12.03%

2.95

-2.43

8.42

15.98

-7.94

14.63

3.74

8.51

-8.24

19.61

8.01

13.73

5.48

11.79%

0.95

6.76

8.63

7.92

5.75

3.62

3.09

4.24

5.75

5.25

5.25

5.06

Past performance is no guarantee of future results. * Results include the applicable sales charge, up to a maximum of 5.75% sales charge.

N/A

0,622 148,249 173,587 216,792 214,657 264,209 293,907 341,610 335,303 428,901 494,869 600,431 675,082 148,978 162,163 179,295 196,628 211,026 221,722 231,620 244,519 261,682 278,510 297,771 314,288

As of November 1, 1987, she is in cash.

The Citigroup 3-Month Treasury Bill Index is proxy for cash. Performance data shown represent past performance and are no guarantee of future results. Investment return and principal value fluctuate so your shares, when sold, may be worth more or less than the original cost; current performance may be lower or higher than quoted. For most recent month-end performance, please visit mfs.com. Other share classes are available for which performance and expenses will differ. Performance results reflect any applicable expense subsidies and waivers in effect during the periods shown. Without such subsidies and waivers the fund’s performance results would be less favorable. All results assume the reinvestment of dividends and capital gains. The performance is as of the date shown; it may not include the fund’s entire investment portfolio and is subject to change. Gross Expense Ratio is the fund’s total operating expense ratio from the fund’s most recent prospectus. Net Expense Ratio reflects the reduction of expenses from fee waivers and reimbursements. Elimination of these reductions will result in higher expenses and lower performance. page 13

CREATE A PLAN

MARGIE REEDY ENJOYS RETIREMENT As Margie approaches retirement, she meets with her financial advisor and develops a plan to supplement her current income needs. She decides on the 1st of the year to take a 5% annual distribution based on her account’s opening balance. This amount will be increased by 3% each subsequent year to help offset inflation. Hypothetical retirement scenario (1/1/99 - 12/31/17)

$1,000,000

ANNUAL WITHDRAWALS (MTR) ACCOUNT VALUE (MTR) ANNUAL WITHDRAWALS (CASH)

ACCOUNT VALUE

$800,000

ACCOUNT VALUE (CASH)

$600,000

$400,000

$200,000

$0 1999

1999

2000

2000

2001

2001

2002

2002

2003

2003

2004

2004

2005

2005

2006

2006

2007

2007

2008

2008

MFS Total Return Fund Total return at NAV With max 5.75% sales charge

Systematic withdrawal

1

Market value fund

2.31

19.03

-0.62

-5.56

16.85

11.37

3.29

11.77

4.97

-22.63

-3.57

12.19

-6.34

-10.99

10.13

4.97

-2.65

5.35

-1.06

-27.08

33,754

34,767

35,810

36,884

37,991

39,130

40,304

41,513

42,759

44,041

656,143

739,624

699,451

625,728

686,771

721,277

703,377

739,765

731,648

532,001

4.74

5.96

4.09

1.70

1.07

1.24

3.00

4.76

4.74

1.80

15,714

16,186

16,671

17,172

17,687

18,217

18,764

19,327

19,907

20,504

312,718

314,198

309,690

297,501

282,821

267,883

256,592

248,559

239,485

222,916

Cash account Total return (%) Systematic withdrawal Market value

1

The example above is hypothetical and does not represent the investor’s complete retirement investment plan. Actual performance results will not be representative of other investors. Most investments, including mutual funds, will not perform as well over the same time period, and future market performance will vary. This example does not include an IRA or Roth plan, and therefore taxes on income and redemption would apply. Performance results may not be representative of future performance of any MFS product. There is no guarantee that distributions will not reduce the total value of an account. All dividends and capital gains have been reinvested. The use of a systematic investing program does not guarantee a profit or protect against a loss in declining markets. You should consider your financial ability to continue to invest through periods of low prices.

1

page 14

Because Margie stuck to the plan, she was able to withdraw $847,798 in income over 20 years, while still growing her account value to $512,418

Not sticking to her plan during volatility would greatly lessen her withdrawal and her account value.

$100,000

$60,000

$40,000

ANNUAL WITHDRAWALS

$80,000

$20,000

2009

2010

2009

2010

2011

2011

2012

2012

2013

2013

2014

2014

2015

2015

2016

2016

2017

2017

$0 RESULTS

18.18

9.98

1.90

11.25

18.87

8.34

-0.38

8.87

12.16

11.38

3.66

-3.96

4.85

12.04

2.11

-6.11

2.61

5.71

45,363

46,724

48,125

49,569

51,056

52,588

54,165

55,790

57,464

$847,798

575,109

581,119

543,120

549,076

591,996

584,395

528,214

514,328

512,418

$512,418

0.16

0.13

0.08

0.07

0.05

0.03

0.03

0.27

0.84

21,119

21,752

22,405

23,077

23,769

24,483

25,217

25,974

26,753

$394,697

202,126

180,609

158,324

135,344

111,631

87,177

61,978

36,102

9,427

$9,427

An experienced financial advisor — who knows your goals, temperament for risk, time horizon and total holdings — could be your most valuable asset in any market environment and over time. page 15

STICK TO THE PLAN

WHY SHOULD I STICK TO THE PLAN? When markets get a little volatile, people tend to let emotions take over, and they make irrational decisions with regard to their portfolios. What’s more, the media and news headlines often lead to short-term investment decisions that are costly and destructive. That’s why it’s important for you to use a disciplined approach based on your risk profile.

If you missed the best days of the market Growth of $10,000 in the S&P 500 vs. Average Investor, 20 years ending December 31, 2017

FULLY INVESTED

MISSED 10 BEST DAYS

$

20,030

MISSED 20 BEST DAYS

$

12,570

MISSED 30 BEST DAYS

$

8,332

Past performance is no guarantee of future results.

The S&P 500 Index measures the broad US stock market. Index performance does not include any investment-related fees or expenses. It is not possible to invest directly in an index. Keep in mind that all investments, including mutual funds, carry a certain amount of risk, including the possible loss of the principal amount invested.

page 16

If you employed a buy-and-hold strategy 20 years ending December 31, 2017

$

40,135

7.20 % 4.79 S&P 500

%

AVERAGE INVESTOR RETURN

*

A financial advisor can help you stick to your plan and not be thrown off course by the market’s ups and downs along the way.

*Source: "DALBAR Quantitative Analysis of Investor Behavior 2017," Advisor Edition. Data is as of 12/31/16, latest data available. Methodology: DALBAR’s Quantitative Analysis of Investor Behavior (QAIB) uses data from the Investment Company Institute (ICI), S&P 500, Barclays Capital Index Products and proprietary sources to compare mutual fund investor returns to an appropriate set of benchmarks. Covering the period from QAIB’s inception (January 1, 1984) to December 31, 2016. the study utilizes mutual fund sales, redemptions and exchanges each month as the measure of investor behavior. These behaviors reflect the “average investor.” Based on this behavior, the analysis calculates the “average investor return” for various periods. These results are then compared to the returns of respective indices.

page 17

STICK TO THE PLAN

WHY IS HAVING THE RIGHT INVESTMENT MANAGER SO IMPORTANT? Given the growing challenges in today’s markets, investors need more expertise — not less. They need an investment manager who actively manages risk when the markets are inefficient and who seeks to add value to an investor’s portfolio by managing volatility and navigating changing market cycles more effectively.

Managing risk and loss is critical Managing risk can make growth easier. Losses are linear, but the gains and time required for a portfolio to recover are exponential. While many investors attempt to maximize returns by chasing gains, it may be more practical and sustainable to grow returns by reducing losses. % LOSS

% GAIN TO GET BACK TO EVEN

-10%11.11%

-20%25.00%

-40%66.67%

page 18

AT MFS , RISK MANAGEMENT IS EVERYONE’S JOB ®

We take a holistic approach to actively managing risk, with reviews in place at security, portfolio and firm levels and a clear focus on generating alpha for our clients. Since 1924, when MFS created America’s first mutual fund, we have been keenly aware that risk management is critical to wealth accumulation.

Rigorous and continuous risk management Our goal is to deliver the greatest possible return for our clients within the risk guidelines of each portfolio.

Risk management is embedded in — and an integral part of — our investment process.

Every member of the investment team is responsible for assessing risk, and our risk review process is rigorous, continuous and methodical.

As long-term investors, we look past short-term market movements and seek to manage volatility by focusing on solid fundamentals and selecting investments that we believe can hold their value through changing markets.

page 19

REVIEW THE PLAN

HOW CAN A FINANCIAL ADVISOR HELP ME? A financial advisor — who knows your goals, temperament for risk, time horizon and total holdings — could be your most valuable asset in any market environment and over time. He or she can • help you determine your overall comfort level with risk • allocate and diversify your assets accordingly • create the best possible plan for pursuing your long-term financial goals Your financial advisor can also review your overall portfolio plan, at least annually, to help keep you focused and on course with your goals. And as the market and your needs change over time, an advisor will be right there with you, helping you make changes to your portfolio as necessary.

Important risk considerations The fund may not achieve its objective and/or you could lose money on your investment in the fund. • Stock markets and investments in individual stocks are volatile and can decline significantly in response to issuer, market, economic, industry, political, regulatory, geopolitical, and other conditions. • Investments in debt instruments may decline in value as the result of declines in the credit quality of the issuer, borrower, counterparty, or other entity responsible for payment, underlying collateral, or changes in economic, political, issuer-specific, or other conditions. Certain types of debt instruments can be more sensitive to these factors and therefore more volatile. In addition, debt instruments entail interest rate risk (as interest rates rise, prices usually fall), therefore the Fund’s share price may decline during rising rates. Funds that consist of debt instruments with longer durations are generally more sensitive to a rise in interest rates than those with shorter durations. At times, and particularly during periods of market turmoil, all or a large portion of segments of the market may not have an active trading market. As a result, it may be difficult to value these investments and it may not be possible to sell a particular investment or type of investment at any particular time or at an acceptable price. The price of an instrument trading at a negative interest rate responds to interest rate changes like other debt instruments; however, an instrument purchased at a negative interest rate is expected to produce a negative return if held to maturity. • Investments in value companies can continue to be undervalued for long periods of time, not realize their expected value, and be more volatile than the stock market in general. • Please see the prospectus for further information on these and other risk considerations.

page 20

Before investing, consider the fund’s investment objectives, risks, charges, and expenses. For a prospectus or summary prospectus containing this and other information, contact your investment professional or view online at mfs.com. Please read it carefully MFS FUND DISTRIBUTORS, INC., BOSTON, MA MFSP-CCI-BRO-2/18 34557.10

March 31, 2018

CLASS A MFS FUND PERFORMANCE SUPPLEMENT Performance data shown represent past performance and are no guarantee of future results. Investment return and principal value fluctuate so your shares, when sold, may be worth more or less than the original cost; current performance may be lower or higher than quoted. For most recent month-end performance, please visit mfs.com.

Class A inception date

Max sales charge

07/15/24 01/01/35 08/07/97 09/15/15 08/19/16 09/15/15 09/15/15 01/02/96 09/27/12 08/30/00 09/13/93 12/05/13 12/01/93 08/31/01 01/02/97 05/26/11 10/13/71 01/02/97 10/06/70 02/14/92 01/02/96

5.75 5.75 5.75 5.75 5.75 5.75 5.75 5.75 5.75 5.75 5.75 5.75 5.75 5.75 5.75 5.75 5.75 5.75 5.75 5.75 5.75

AVERAGE ANNUAL TOTAL RETURNS (%) Including sales charges, through 3/31/18 YTD* 1 yr. 5 yrs. 10 yrs./Life

EXPENSE RATIOS (%) E1 Waiver Gross Net end date

STOCK FUNDS

Massachusetts Investors Trust Massachusetts Investors Growth Stock Fund MFS® Blended Research® Core Equity Fund C1, C4 MFS® Blended Research® Growth Equity Fund MFS® Blended Research® Mid Cap Equity Fund MFS® Blended Research® Small Cap Equity Fund MFS® Blended Research® Value Equity Fund MFS® Core Equity Fund C2 MFS® Equity Income Fund MFS® Equity Opportunities Fund C3 MFS® Growth Fund MFS® Low Volatility Equity Fund MFS® Mid Cap Growth Fund MFS® Mid Cap Value Fund MFS® New Discovery Fund MFS® New Discovery Value Fund MFS® Research Fund MFS® Technology Fund MFS® Total Return Fund MFS® Utilities Fund MFS® Value Fund

-6.07 -3.95 -7.53 -4.70 -6.54 -5.82 -7.49 -5.66 -7.87 -9.09 -0.92 -7.10 -0.74 -7.62 -1.88 -9.40 -5.35 1.24 -7.88 -7.81 -8.64

8.45 13.21 5.08 12.17 6.52 4.85 3.86 10.04 3.86 2.22 17.99 3.20 17.02 1.21 16.55 1.42 8.81 24.27 -0.06 -1.57 2.46

10.91 11.87 10.72 .— .— .— .— 11.76 9.36 9.76 13.84 .— 12.67 9.31 8.47 10.05 11.05 18.67 6.12 4.32 10.08

8.32 9.55 8.28 11.03 9.37 9.71 9.53 9.27 10.21 7.23 10.46 8.52 8.24 8.89 10.66 10.85 8.66 12.94 5.68 5.49 7.63

0.73 0.74 0.83 0.98 0.86 1.57 0.96 1.02 1.07 1.19 0.94 1.24 1.21 1.11 1.35 1.37 0.83 1.24 0.73 1.01 0.84

0.73 0.74 0.74 0.74 0.84 0.99 0.74 1.02 0.89 1.19 0.94 0.89 1.21 1.11 1.35 1.37 0.83 1.24 0.73 1.01 0.84

— — 01/31/19 09/30/18 09/30/18 09/30/18 09/30/18 — 11/30/18 — — 12/31/18 — — — — — — — — —

ASSET ALLOCATION STRATEGIES

MFS® Conservative Allocation Fund 06/28/02 5.75 -5.99 0.92 3.55 5.04 0.93 0.93 — MFS® Moderate Allocation Fund 06/28/02 5.75 -5.81 3.76 5.26 5.79 0.98 0.98 — MFS® Growth Allocation Fund 06/28/02 5.75 -5.57 6.63 6.91 6.31 1.05 1.04 09/30/18 MFS® Aggressive Growth Allocation Fund 06/28/02 5.75 -5.51 9.38 8.42 6.69 1.12 1.10 09/30/18 MFS® Lifetime® 2020 Fund 09/29/05 5.75 -6.18 0.07 3.79 4.50 1.08 0.83 08/31/18 MFS® Lifetime® 2025 Fund 11/02/12 5.75 -6.04 2.40 5.41 6.47 1.16 0.84 08/31/18 MFS® Lifetime® 2030 Fund 09/29/05 5.75 -5.87 5.07 6.86 5.85 1.11 0.87 08/31/18 MFS® Lifetime® 2035 Fund 11/02/12 5.75 -5.81 6.72 7.61 8.91 1.25 0.89 08/31/18 MFS® Lifetime® 2040 Fund 09/29/05 5.75 -5.81 7.56 8.01 6.34 1.16 0.90 08/31/18 MFS® Lifetime® 2045 Fund 11/02/12 5.75 -5.81 7.90 8.11 9.45 1.35 0.90 08/31/18 MFS® Lifetime® 2050 Fund 09/15/10 5.75 -5.80 7.94 8.08 9.77 1.31 0.90 08/31/18 MFS® Lifetime® 2055 Fund 11/02/12 5.75 -5.87 7.88 8.08 9.42 2.03 0.91 08/31/18 MFS® Lifetime® 2060 Fund 12/06/16 5.75 -5.75 8.03 .— 11.41 20.18 0.90 08/31/18 MFS® Lifetime® Income Fund 09/29/05 4.25 -4.80 0.55 2.75 4.77 1.05 0.81 08/31/19 MFS® Diversified Income Fund 05/26/06 4.25 -6.68 -1.33 4.07 6.08 1.02 1.02 — MFS® Global Alternative Strategy Fund S6 12/20/07 5.75 -5.28 -3.07 0.39 1.36 1.63 1.51 02/28/19 MFS® Managed Wealth Fund 06/27/14 5.75 -4.27 -0.27 .— 0.69 1.66 1.45 09/30/18 MFS® Prudent Investor Fund 01/18/18 5.75 .— .— .— -6.79* 2.35 1.24 10/31/19 * Periods less than one year are actual not annualized. Performance results reflect any applicable expense subsidies and waivers in effect during the periods shown. Without such subsidies and waivers the fund's performance results would be less favorable. All results assume the reinvestment of dividends and capital gains. The performance is as of the date shown; it may not include the fund's entire investment portfolio and is subject to change. S6 Subadvised by UBS Asset Management (Americas), Inc. C1 Effective June 1, 2008, MFS Union Standard Equity Fund was renamed MFS Blended Research Core Equity Fund. Performance achieved prior to June 1, 2008 is attributable to the fund's prior investment strategy. C2 Included in all fund classes' total returns for the month of Dec 31, 2017, are proceeds received from a non-recurring litigation settlement against Household International Inc. Had these proceeds not been included, all total returns within calendar year 2017 would have been lower by 0.89%. C3 Performance information for periods prior to February 1, 2010, reflects periods when a subadvisor was responsible for selecting investments for the fund under different investment strategies. C4 Performance information prior to June 1, 2008, reflects time periods when the fund had a policy of investing at least 80% of its net assets in union- and labor-sensitive companies. This policy was eliminated effective June 1, 2008. E1 Gross Expense Ratio is the fund's total operating expense ratio from the fund's most recent prospectus. Net Expense Ratio reflects the reduction of expenses from fee waivers and reimbursements. Elimination of these reductions will result in higher expenses and lower performance. These reductions will continue until at least date noted under the "Waiver End Date" column. Returns are unaudited and subject to change.

This piece must accompany the applicable fact sheet, brochure, or sales material. MFS Fund Distributors, Inc., 111 Huntington Avenue, Boston, MA 02199

March 31, 2018

CLASS A MFS FUND PERFORMANCE SUPPLEMENT Performance data shown represent past performance and are no guarantee of future results. Investment return and principal value fluctuate so your shares, when sold, may be worth more or less than the original cost; current performance may be lower or higher than quoted. For most recent month-end performance, please visit mfs.com. AVERAGE ANNUAL TOTAL RETURNS (%) Including sales charges, through 3/31/18 YTD* 1 yr. 5 yrs. 10 yrs./Life

EXPENSE RATIOS (%) E1 Waiver Gross Net end date

Class A inception date

Max sales charge

09/15/15 09/15/15 09/15/15 10/24/95 09/07/93 11/18/93 12/16/11 03/11/09 09/04/90 09/30/04 10/24/95 10/09/97 10/24/95 12/05/13 01/02/97

5.75 5.75 5.75 5.75 5.75 5.75 5.75 5.75 5.75 5.75 5.75 5.75 5.75 5.75 5.75

-3.06 -6.19 -5.05 -3.23 -7.70 -4.78 -3.28 -9.60 -6.33 -6.04 -6.98 -3.99 -6.47 -7.23 -6.48

19.29 9.14 11.81 19.41 5.83 13.80 18.60 -1.18 3.38 13.11 13.84 16.74 10.63 4.02 11.48

.— .— .— 2.56 7.88 8.90 8.33 4.57 5.06 5.97 5.37 7.19 9.40 .— 4.27

17.73 9.60 7.65 0.88 6.71 6.47 12.79 15.10 4.78 3.90 4.01 6.23 6.47 6.50 1.95

3.30 5.27 0.97 1.50 1.17 1.44 2.33 1.43 1.18 1.19 1.18 1.31 1.01 1.12 1.11

1.24 0.89 0.89 1.50 1.17 1.40 1.50 1.35 1.09 1.16 1.18 1.31 1.01 0.99 1.11

12/31/18 12/31/18 12/31/18 — — 02/28/19 12/31/18 12/31/18 02/28/19 09/30/18 — — — 12/31/18 —

05/08/74 03/17/98 09/15/11 06/02/10 07/01/98 07/25/84 02/17/78 09/30/03 02/26/92 10/29/87 01/04/99 02/24/84 09/07/93 03/17/92

4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.25 2.50 4.25 4.25 4.25 4.25 2.50

-6.68 -5.78 0.20 -3.16 -5.56 -5.47 -5.65 -5.15 -2.66 -5.91 -5.83 -4.45 -5.21 -3.09

-2.26 -0.59 7.27 2.25 -1.46 -4.07 -1.96 -3.95 -1.88 -2.36 -2.92 0.56 -1.04 -1.07

1.82 2.09 -1.97 -1.22 3.04 -0.22 3.05 -1.57 0.20 1.73 1.07 3.29 1.97 0.73

5.22 5.91 -0.53 1.26 5.76 2.18 5.85 1.57 1.58 4.39 3.99 5.21 4.24 2.39

0.81 1.09 1.49 1.17 1.17 0.88 0.97 0.97 0.83 1.13 0.90 0.69 0.78 0.80

0.81 1.09 1.10 1.05 1.06 0.88 0.97 0.80 0.73 1.06 0.74 0.66 0.74 0.69

— — 02/28/19 03/31/19 05/31/18 — — 02/28/19 08/31/18 02/28/19 08/31/18 05/31/18 07/31/18 08/31/18

GLOBAL/INTERNATIONAL FUNDS

MFS® Blended Research® Emerging Markets Equity Fund MFS® Blended Research® Global Equity Fund MFS® Blended Research® International Equity Fund MFS® Emerging Markets Equity Fund MFS® Global Equity Fund MFS® Global Growth Fund MFS® Global New Discovery Fund MFS® Global Real Estate Fund MFS® Global Total Return Fund MFS® International DiversificationSM Fund MFS® International Growth Fund MFS® International New Discovery Fund MFS® International Value Fund MFS® Low Volatility Global Equity Fund MFS® Research International Fund BOND FUNDS

MFS® Corporate Bond Fund MFS® Emerging Markets Debt Fund MFS® Emerging Markets Debt Local Currency Fund MFS® Global Bond Fund C5 MFS® Global High Yield Fund MFS® Government Securities Fund MFS® High Income Fund MFS® Inflation-Adjusted Bond Fund MFS® Limited Maturity Fund MFS® Strategic Income Fund MFS® Total Return Bond Fund MFS® Municipal High Income Fund MFS® Municipal Income Fund MFS® Municipal Limited Maturity Fund STATE MUNICIPAL BOND FUNDS

MFS® Alabama Municipal Bond Fund 02/01/90 4.25 -5.05 -2.00 1.38 3.43 1.09 0.90 07/31/18 MFS® Arkansas Municipal Bond Fund 02/03/92 4.25 -5.04 -2.22 1.09 3.13 0.91 0.76 07/31/18 MFS® California Municipal Bond Fund 06/18/85 4.25 -5.19 -0.93 2.48 4.38 0.88 0.73 07/31/18 MFS® Georgia Municipal Bond Fund 06/06/88 4.25 -5.14 -2.19 1.23 3.36 1.05 0.90 07/31/18 MFS® Maryland Municipal Bond Fund 10/31/84 4.25 -4.89 -1.96 1.12 3.29 1.00 0.83 07/31/18 MFS® Massachusetts Municipal Bond Fund 04/09/85 4.25 -5.15 -1.76 1.35 3.58 0.88 0.88 — MFS® Mississippi Municipal Bond Fund 08/06/92 4.25 -5.08 -2.27 1.17 3.39 0.98 0.83 07/31/18 MFS® New York Municipal Bond Fund 06/06/88 4.25 -5.23 -1.48 1.55 3.55 0.89 0.89 — MFS® North Carolina Municipal Bond Fund 10/31/84 4.25 -5.07 -2.07 1.08 3.43 0.87 0.87 — MFS® Pennsylvania Municipal Bond Fund 02/01/93 4.25 -4.80 -1.10 1.77 3.73 0.97 0.82 07/31/18 MFS® South Carolina Municipal Bond Fund 10/31/84 4.25 -4.97 -1.95 0.96 3.14 0.90 0.84 07/31/18 MFS® Tennessee Municipal Bond Fund 08/12/88 4.25 -5.00 -2.41 0.88 3.23 0.96 0.88 07/31/18 MFS® Virginia Municipal Bond Fund 10/31/84 4.25 -4.90 -2.21 1.25 3.33 0.91 0.83 07/31/18 MFS® West Virginia Municipal Bond Fund 10/31/84 4.25 -4.77 -2.19 1.08 3.09 0.95 0.87 07/31/18 * Periods less than one year are actual not annualized. Performance results reflect any applicable expense subsidies and waivers in effect during the periods shown. Without such subsidies and waivers the fund's performance results would be less favorable. All results assume the reinvestment of dividends and capital gains. The performance is as of the date shown; it may not include the fund's entire investment portfolio and is subject to change. C5 Performance information reflects time periods when the fund had (i) a policy of focusing its investments on debt instruments of U.S. and foreign governments and (ii) a policy permitting the fund to invest up to 100% of its assets in less than investment grade quality debt instruments (lower quality debt instruments). The fund's investment policies and strategies changed effective December 1, 2014. E1 Gross Expense Ratio is the fund's total operating expense ratio from the fund's most recent prospectus. Net Expense Ratio reflects the reduction of expenses from fee waivers and reimbursements. Elimination of these reductions will result in higher expenses and lower performance. These reductions will continue until at least date noted under the "Waiver End Date" column. Returns are unaudited and subject to change. This piece must accompany the applicable fact sheet, brochure, or sales material. MFS Fund Distributors, Inc., 111 Huntington Avenue, Boston, MA 02199

MFSP-PERF-SUP-04-18 15545.40.