497K 1 mod.htm MFS MODERATE ALLOCATION FUND mod.htm
Before you invest, you may want to review the fund’s prospectus, which contains more information about the fund and its risks. You can find the fund’s prospectus and other information about the fund, including the fund’s statement of additional information, online at funds.mfs.com.  You can also get this information at no cost by calling 1-800-225-2606 or by sending an e-mail request to orderliterature@mfs.com.  The fund’s prospectus and statement of additional information, both dated September 28, 2011, as may be supplemented from time to time, are incorporated by reference into this Summary Prospectus.

 
CLASS
 
TICKER SYMBOL
Class A
MAMAX
Class B
MMABX
Class C
MMACX
Class I
MMAIX
Class 529A
EAMDX
Class 529B
EBMDX
Class 529C
ECMAX
Class R1
MAMFX
Class R2
MARRX
Class R3
MAMHX
Class R4
MAMJX
 
Summary of Key Information
 
Investment Objective
The investment objective of the fund is to seek a high level of total return consistent with a moderate level of risk relative to the other MFS Asset Allocation Funds.
 
Fees and Expenses
This table describes the fees and expenses that you may pay when you buy and hold shares of the fund.
 
The annual fund operating expenses are based on expenses reported during the fund’s most recently completed fiscal year and a weighted average of the total annual operating expenses (as reported in each underlying fund’s most recent shareholder report) of, and the fee charged by (if any), the underlying funds in which the fund invested during the fund’s most recently completed fiscal year, expressed as a percentage of the fund’s average net assets during the period. They have been adjusted to reflect certain current fee arrangements.
 
You may qualify for sales charge reductions if you and certain members of your family invest, or agree to invest in the future, at least $50,000 in MFS Funds. More information about these and other waivers and reductions is available from your financial intermediary and in “Sales Charges and Waivers or Reductions” on page 11 of the fund’s prospectus and “Waivers of Sales Charges” on page I-20 of the fund’s statement of additional information Part I.
 
Shareholder Fees (fees paid directly from your investment):
 
Share Class
A
529A
B AND 529B
C AND 529C
I
ALL R
Maximum Sales Charge (Load)
Imposed on Purchases (as a percentage of offering price)
5.75%
5.75%
None
None
None
None
Maximum Deferred Sales Charge (Load) (as a percentage of original purchase price or redemption proceeds, whichever is less)
1.00%#
None
4.00%
1.00%
None
None
 
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment):
 
Share Class
A
B
C
I
529A
529B
529C
R1
R2
R3
R4
Management Fee
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Distribution and/or Service (12b-1) Fees
0.25%
1.00%
1.00%
None
0.25%
1.00%
1.00%
1.00%
0.50%
0.25%
None
Other Expenses
0.05%
0.05%
0.05%
0.05%
0.15%
0.15%
0.15%
0.05%
0.05%
0.05%
0.05%
Acquired (Underlying) Fund Fees and Expenses
0.81%
0.81%
0.81%
0.81%
0.81%
0.81%
0.81%
0.81%
0.81%
0.81%
0.81%
Total Annual Fund
Operating Expenses
1.11%
1.86%
1.86%
0.86%
1.21%
1.96%
1.96%
1.86%
1.36%
1.11%
0.86%
Fee Reductions and/or Expense Reimbursements1
0.00%
0.00%
0.00%
0.00%
(0.05)%
(0.05)%
(0.05)%
0.00%
0.00%
0.00%
0.00%
Total Annual Fund Operating Expenses After Fee Reductions and/or Expense Reimbursements
1.11%
1.86%
1.86%
0.86%
1.16%
1.91%
1.91%
1.86%
1.36%
1.11%
0.86%
 
#
On shares purchased without an initial sales charge and redeemed within 18 months of purchase for shares purchased on or after August 1, 2012, and within 24 months of purchase for shares purchased prior to August 1, 2012.
1
The fund's distributor, MFS Fund Distributors, Inc. (“MFD”), has agreed in writing to waive the program management fee for each of the fund's Class 529A, Class 529B, and Class 529C shares to 0.05% of the fund's average daily net assets attributable to each share class annually.  This written agreement will expire on September 30, 2012, unless MFD elects to extend the waiver.


 
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MFS Moderate Allocation Fund

Example
This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds.
 
The example assumes that: you invest $10,000 in the fund for the time periods indicated and you redeem your shares at the end of the time periods (unless otherwise indicated); your investment has a 5% return each year; and the fund’s operating expenses remain the same.
 
Although your actual costs will likely be higher or lower, under these assumptions your costs would be:
 
 
1 YEAR
3 YEARS
5 YEARS
10 YEARS
Class A Shares
$682
$908
$1,151
$1,849
Class B Shares assuming
       
    redemption at end of period
$589
$885
$1,206
$1,984
    no redemption at end of period
$189
$585
$1,006
$1,984
Class C Shares assuming
       
    redemption at end of period
$289
$585
$1,006
$2,180
    no redemption at end of period
$189
$585
$1,006
$2,180
Class I Shares
$88
$274
$477
$1,061
Class 529A Shares
$686
$932
$1,197
$1,952
Class 529B Shares assuming
       
    redemption at end of period
$594
$910
$1,253
$2,087
    no redemption at end of period
$194
$610
$1,053
$2,087
Class 529C Shares assuming
       
    redemption at end of period
$294
$610
$1,053
$2,281
    no redemption at end of period
$194
$610
$1,053
$2,281
Class R1 Shares
$189
$585
$1,006
$2,180
Class R2 Shares
$138
$431
$745
$1,635
Class R3 Shares
$113
$353
$612
$1,352
Class R4 Shares
 $88
$274
$477
$1,061

Portfolio Turnover
The fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when shares are held in a taxable account. These transaction costs, which are not reflected in “Annual Fund Operating Expenses” or in the “Example,” affect the fund’s performance.  During the most recent fiscal year, the fund’s portfolio turnover rate was 12% of the average value of its portfolio.
 
Principal Investment Strategies
 
The fund is designed to provide diversification among different asset classes by investing the majority of its assets in other mutual funds advised by MFS (Massachusetts Financial Services Company, the fund’s investment adviser), referred to as underlying funds. The underlying funds are selected following a two stage asset allocation process. The first stage is a strategic asset allocation to determine the percentage of the fund's assets to be invested in the general asset classes of Bond Funds, International Stock Funds, and U.S. Stock Funds, as well as an allocation to underlying funds that have less traditional investment strategies that MFS believes provide diversification benefits when added to a portfolio consisting of stock and bond funds (referred to as Specialty Funds). The second stage involves the actual selection of underlying funds to represent the asset classes based on underlying fund classifications, historical risk, performance, and other factors. Within the stock fund allocations, MFS seeks to diversify globally (by including domestic and international underlying funds), in terms of market capitalization (by including large, mid, and small capitalization underlying funds), and by style (by including both growth and value underlying funds). Within the bond fund allocation, MFS includes underlying funds with varying degrees of interest rate and credit exposure.
 
As of September 28, 2011, the fund’s target allocation among asset classes and the underlying funds was:
 
Bond Funds:
40%
MFS Emerging Markets Debt Fund
3%
MFS Global Bond Fund
5%
MFS Government Securities Fund
10%
MFS High Income Fund
5%
MFS Inflation-Adjusted Bond Fund
5%
MFS Research Bond Fund
12%
Specialty Funds:
6%
MFS Absolute Return Fund
1%
MFS Commodity Strategy Fund
3%
MFS Global Real Estate Fund
2%
International Stock Funds:
13%
MFS International Growth Fund
3%
MFS International New Discovery Fund
1%
MFS International Value Fund
3%
MFS Research International Fund
6%
U.S. Stock Funds:
41%
MFS Growth Fund
8%
MFS Mid Cap Growth Fund
7%
MFS Mid Cap Value Fund
7%
MFS New Discovery Fund
1.5%
MFS New Discovery Value Fund
1.5%
MFS Research Fund
8%
MFS Value Fund
8%
 
Principal Risks
As with any mutual fund, the fund may not achieve its objective and/or you could lose money on your investment in the fund. An investment in the fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency.
 
The principal risks of investing in the fund are:
 
Stock Market/Company Risk:  Stock markets are volatile and can decline significantly in response to issuer, market, economic, industry, political, regulatory, geopolitical, and other conditions, as well as to investor perceptions of these conditions. The price of an equity security can decrease significantly in response to these conditions, and these conditions can affect a single issuer or type of security, issuers within a broad market sector, industry or geographic region, or the market in general.
 
Foreign and Emerging Markets Risk: Exposure to foreign markets, especially emerging markets, through issuers or currencies can involve additional risks relating to market, economic, political, regulatory, geopolitical, or other conditions. These factors can make foreign investments, especially those in emerging markets, more volatile and less liquid than U.S. investments. In addition, foreign markets can react differently to these conditions than the U.S. market. Emerging markets can have less developed markets and less developed legal, regulatory, and accounting systems, and greater political, social, and economic instability than developed markets.
 
Currency Risk: The value of foreign currencies relative to the U.S. dollar fluctuates in response to market, economic, political, regulatory, geopolitical or other conditions, and a decline in the value of a foreign currency versus the U.S. dollar reduces the value in U.S. dollars of investments denominated in that foreign currency.

 
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MFS Moderate Allocation Fund

Interest Rate Risk:  The price of a debt instrument falls when interest rates rise and rises when interest rates fall. Instruments with longer maturities, or that do not pay current interest, are more sensitive to interest rate changes.
 
Credit Risk: The price of a debt instrument depends, in part, on the credit quality of the issuer, borrower, counterparty, or underlying collateral and can decline in response to changes in the financial condition of the issuer, borrower, counterparty, or underlying collateral, or changes in specific or general market, economic, industry, political, regulatory, geopolitical, or other conditions.
 
Lower quality debt instruments (commonly referred to as “high yield securities” or “junk bonds”) can involve a substantially greater risk of default or can already be in default, and their values can decline significantly. Lower quality debt instruments are regarded as having predominantly speculative characteristics. Lower quality debt instruments tend to be more sensitive to adverse news about the issuer, or the market or economy in general, than higher quality debt instruments.
 
Prepayment/Extension Risk:  Instruments subject to prepayment and/or extension can reduce the potential for gain for the instrument’s holders if the instrument is prepaid and increase the potential for loss if the maturity of the instrument is extended.
 
Inflation-Adjusting Risk:  Interest payments on inflation-adjusted debt instruments can be unpredictable and vary based on the level of inflation. If inflation is negative, principal and income can both decline.
 
Municipal Risk:  The price of a municipal instrument can be volatile and significantly affected by adverse tax or court rulings, legislative or political changes, changes in specific or general market and economic conditions, and the financial condition of municipal issuers and insurers. Because many municipal instruments are issued to finance similar projects, conditions in these industries can significantly affect the fund and the overall municipal market.
 
Commodity Risk:  The value of commodities may be more volatile than the value of equity securities or debt instruments and their value may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity. The price of a commodity may be affected by demand/supply imbalances in the market for the commodity.
 
Real Estate-Related Investment Risk: The risks of investing in real estate-related securities include certain risks associated with the direct ownership of real estate and the real estate industry in general. These include risks related to general, regional and local economic conditions; fluctuations in interest rates; property tax rates, zoning laws, environmental regulations and other governmental action; cash flow dependency; increased operating expenses; lack of availability of mortgage funds; losses due to natural disasters; overbuilding; losses due to casualty or condemnation; changes in property values and rental rates; and other factors.  The securities of smaller real estate-related issuers can be more volatile, less liquid, and have more limited financial resources than securities of larger issuers.
 
Derivatives Risk:  Derivatives can be highly volatile and involve risks in addition to the risks of the underlying indicator(s) on which the derivative is based. Gains or losses from derivatives can be substantially greater than the derivatives’ original cost.  Derivatives can involve leverage.
 
Leveraging Risk:  Leverage involves investment exposure in an amount exceeding the initial investment. Leverage can cause increased volatility by magnifying gains or losses.
 
Investment Selection and Allocation Risk:  MFS’ analysis of an investment and its assessment of the mix of general risk and return characteristics of asset classes and underlying funds can be incorrect and can lead to an investment focus that results in the fund underperforming other funds with similar investment strategies and/or funds that invest in similar asset classes.
 
Counterparty and Third Party Risk:  Transactions involving a counterparty or third party other than the issuer of the instrument are subject to the credit risk of the counterparty or third party, and to the counterparty’s or third party’s ability to perform in accordance with the terms of the transaction.
 
Liquidity Risk:  It may not be possible to sell certain investments, types of investments, and/or segments of the market at any particular time or at an acceptable price.
 
Performance Information
The bar chart and performance table below are intended to provide some indication of the risks of investing in the fund by showing changes in the fund’s performance over time and how the fund’s performance over time compares with that of a broad measure of market performance and one or more other measures of performance for markets in which the fund may invest.
 
The fund’s past performance (before and after taxes) does not necessarily indicate how the fund will perform in the future. Updated performance is available online at mfs.com or by calling 1-800-225-2606.
 
Class A Bar Chart.  The bar chart does not take into account any sales charges (loads) that you may be required to pay upon purchase or redemption of the fund’s shares. If these sales charges were included, they would reduce the returns shown.
 
The total return for the six-month period ended June 30, 2011 was 4.63%. During the period(s) shown in the bar chart, the highest quarterly return was 13.80% (for the calendar quarter ended June 30, 2009) and the lowest quarterly return was (15.13)% (for the calendar quarter ended December 31, 2008).

 
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MFS Moderate Allocation Fund

Performance Table.
 
Average Annual Total Returns
 
(for the Periods Ended December 31, 2010)
 
Share Class
1 YEAR
5 YEARS
LIFE
INCEPTION 06-28-2002
Returns Before Taxes
     
B Shares
9.60%
4.10%
5.86%
C Shares
12.66%
4.44%
5.82%
I Shares
14.79%
5.50%
6.89%
529A Shares
7.83%
3.74%
5.56%
529B Shares
9.57%
3.93%
5.65%
529C Shares
12.48%
4.24%
5.60%
R1 Shares
13.70%
4.41%
5.69%
R2 Shares
14.25%
4.90%
6.18%
R3 Shares
14.53%
5.17%
6.49%
R4 Shares
14.79%
5.43%
6.78%
A Shares
7.94%
3.91%
5.77%
Returns After Taxes on Distributions
A Shares
7.27%
2.93%
4.97%
Returns After Taxes on Distributions and Sale of Fund Shares
A Shares
5.28%
2.88%
4.62%
Index Comparisons (Reflects no deduction for fees, expenses or taxes)
     
Standard & Poor’s 500 Stock Index
Barclays Capital U.S Aggregate Bond Index
15.06%
2.29%
4.88%
MFS Moderate Allocation Fund Blended
Index*
11.64%
4.22%
5.75%
 
 
*The MFS Moderate Allocation Fund Blended Index was composed at period end of the following amounts of the following indices: Standard & Poor’s 500 Stock Index (41%); Morgan Stanley Capital International (MSCI) EAFE (Europe, Australasia, Far East) Index (13%); The Dow Jones-UBS Commodity Index (3%); FTSE EPRA/NAREIT Developed Real Estate Index (2%); and Barclays Capital U.S. Aggregate Bond Index (41%).
 
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Your actual after-tax returns will depend on your own tax situation, and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. The after-tax returns are shown for only one of the fund’s classes of shares, and after-tax returns for the fund’s other classes of shares will vary from the returns shown.
 
Investment Adviser
MFS serves as the investment adviser for the fund.
 
Portfolio Manager(s)

Portfolio Manager
Since
Title
Joseph C. Flaherty, Jr.
2002
Investment Officer of MFS
 
Purchase and Sale of Fund Shares
You may purchase and redeem shares of the fund each day the New York Stock Exchange is open for trading. You may purchase or redeem shares either by having your financial intermediary process your purchase or redemption, or by overnight mail (MFS Service Center, Inc. (MFSC), c/o Boston Financial Data Services, 30 Dan Road, Canton, MA  02021-2809), by mail ([Fund Name], P.O. Box 55824, Boston, MA 02205-5824), by telephone (1-800-225-2606), or via the Internet at mfs.com (MFS Access).
 
The fund’s initial and subsequent investment minimums generally are as follows:
 
Class
Initial Minimum
Subsequent Minimum
 
Class A, Class B, Class C
None – automatic investment plans and certain asset-based fee programs
$25 – employer-sponsored retirement plans
$250 – Traditional and Roth IRAs
$1,000 – other accounts
$50 – by check and non-systematic written exchange request, and via MFSC telephone representatives
None – other purchases
Class I, Class R1, Class R2, Class R3, Class R4
None
None
Class 529A, Class 529B, Class 529C
$250
None

Taxes
If your shares are held in a taxable account, the fund’s distributions are taxable to you, and will be taxed as ordinary income and/or capital gains.
 
Payments to Broker/Dealers and Other Financial Intermediaries
If you purchase shares of the fund through a broker/dealer or other financial intermediary (such as a bank), the fund, MFS, and MFS’ affiliates may pay the financial intermediary for the sale of shares of a fund and/or the servicing of shareholder accounts. These payments may create a conflict of interest by influencing your broker/dealer or other financial intermediary and your salesperson to recommend the fund over another investment. Ask your financial intermediary or visit your financial intermediary’s Web site for more information.
 
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