497K 1 a17-15333_14497k.htm 497K

 

SUMMARY PROSPECTUS

September 28, 2017

GRAPHIC

 

MFS® International DiversificationSM Fund

 

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, 2017, as may be amended or supplemented from time to time, are incorporated by reference into this summary prospectus.

 

CLASS

 

TICKER
SYMBOL

Class A

 

MDIDX

Class T (Currently Not Offered)

 

N/A

Class B

 

MDIFX

Class C

 

MDIGX

Class I

 

MDIJX

Class R1

 

MDIOX

Class R2

 

MDIKX

Class R3

 

MDIHX

Class R4

 

MDITX

Class R61

 

MDIZX

 


1 Expected to be offered on October 2, 2017.

 

Summary of Key Information

 

Investment Objective

 

The fund’s investment objective is to seek capital appreciation.

 

Fees and Expenses

 

This table describes the fees and expenses that you may pay when you buy and hold shares of the fund. Investors may also pay commissions or other fees to their financial intermediary when they buy and hold shares of the fund, which are not reflected below. Expenses have been adjusted to reflect current fee arrangements.

 

You may qualify for sales charge reductions if, with respect to Class A shares, you and certain members of your family invest, or agree to invest in the future, at least $50,000 in MFS Funds, and, with respect to Class T shares, you invest at least $250,000 in the fund. More information about these and other waivers and reductions is available from your financial intermediary and in “Sales Charges and Waivers and Reductions” on page 9 and “Appendix A — Waivers and Reductions of Sales Charges” on page A-1 of the fund’s prospectus.

 

Shareholder Fees (fees paid directly from your investment):

 

Share Class

 

A

 

T

 

B

 

C

 

I

 

R1

 

R2

 

R3

 

R4

 

R6

 

Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)

 

5.75

%

2.50

%

None

 

None

 

None

 

None

 

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

 

None

 

None

 

None

 

None

 

 

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment):

 

Share Class

 

A

 

T

 

B

 

C

 

I

 

R1

 

R2

 

R3

 

R4

 

R6

 

Management Fee

 

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

%

0.25

%

1.00

%

1.00

%

None

 

1.00

%

0.50

%

0.25

%

None

 

None

 

Other Expenses

 

0.13

%

0.13

%

0.13

%

0.13

%

0.13

%

0.13

%

0.13

%

0.13

%

0.13

%

0.03

%

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

%

Total Annual Fund Operating Expenses

 

1.19

%

1.19

%

1.94

%

1.94

%

0.94

%

1.94

%

1.44

%

1.19

%

0.94

%

0.84

%

Fee Reductions and/or Expense Reimbursements1

 

(0.03

)%

(0.03

)%

(0.03

)%

(0.03

)%

(0.03

)%

(0.03

)%

(0.03

)%

(0.03

)%

(0.03

)%

(0.03

)%

Total Annual Fund Operating Expenses After Fee Reductions and/or Expense Reimbursements

 

1.16

%

1.16

%

1.91

%

1.91

%

0.91

%

1.91

%

1.41

%

1.16

%

0.91

%

0.81

%

 


#                 This contingent deferred sales charge (CDSC) applies to shares purchased without an initial sales charge and redeemed within 18 months of purchase.

1                 Massachusetts Financial Services Company has agreed in writing to bear the fund’s expenses, excluding management fees, distribution and service fees, interest, taxes, extraordinary expenses, brokerage and transaction costs, and investment-related expenses, including fees and expenses associated with investments in investment companies and other similar investment vehicles, such that “Other Expenses” do not exceed 0.10% of the class’ average daily net assets annually for each of Class A, Class T, Class B, Class C, Class I, Class R1, Class R2, Class R3, and Class R4 shares, and 0.00% of the class’ average daily net assets annually for Class R6 shares. This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue until at least September 30, 2018.

 

MDI-SUM-092817

 

Page 1 of 4



 

MFS International Diversification 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

 

$

686

 

$

928

 

$

1,189

 

$

1,933

 

Class T Shares

 

$

365

 

$

616

 

$

885

 

$

1,655

 

Class B Shares assuming

 

 

 

 

 

 

 

 

 

redemption at end of period

 

$

594

 

$

906

 

$

1,244

 

$

2,067

 

no redemption at end of period

 

$

194

 

$

606

 

$

1,044

 

$

2,067

 

Class C Shares assuming

 

 

 

 

 

 

 

 

 

redemption at end of period

 

$

294

 

$

606

 

$

1,044

 

$

2,262

 

no redemption at end of period

 

$

194

 

$

606

 

$

1,044

 

$

2,262

 

Class I Shares

 

$

93

 

$

297

 

$

517

 

$

1,152

 

Class R1 Shares

 

$

194

 

$

606

 

$

1,044

 

$

2,262

 

Class R2 Shares

 

$

144

 

$

453

 

$

784

 

$

1,722

 

Class R3 Shares

 

$

118

 

$

375

 

$

651

 

$

1,441

 

Class R4 Shares

 

$

93

 

$

297

 

$

517

 

$

1,152

 

Class R6 Shares

 

$

83

 

$

265

 

$

463

 

$

1,034

 

 

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 3% of the average value of its portfolio.

 

Principal Investment Strategies

 

The fund is designed to provide diversification within the international asset class 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 based on underlying fund classifications, historical risk, performance, and other factors. MFS seeks to diversify the fund’s investments in terms of market capitalization (by including large, mid, and/or small cap underlying funds), by style (by including both growth and value underlying funds), and by geographic region (by including developed and emerging market underlying funds).  MFS normally invests each underlying fund’s assets across different industries, sectors, countries, and regions, but MFS may invest a significant percentage of an underlying fund’s assets in issuers in a single industry, sector, country, or region.

 

As of September 1, 2017, the fund’s target allocation among underlying funds was:

 

MFS Emerging Markets Equity Fund

 

10

%

MFS International Growth Fund

 

25

%

MFS International New Discovery Fund

 

10

%

MFS International Value Fund

 

25

%

MFS Research International Fund

 

30

%

 

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:

 

Allocation Risk:  MFS’ assessment of the risk/return potential of asset classes and underlying funds, and the resulting allocation among asset classes and underlying funds, may not produce the intended results and/or can lead to an investment focus that results in the fund underperforming other funds with similar investment strategies and/or underperforming the markets in which the fund invests.

 

Underlying Funds Risk:  MFS’ strategy of investing in underlying funds exposes the fund to the risks of the underlying funds. Each underlying fund pursues its own investment objective and strategies and may not achieve its objective.  In addition, shareholders of the fund will indirectly bear the fees and expenses of the underlying funds.

 

Equity Market/Company Risk: Equity markets are volatile and can decline significantly in response to, or investor perceptions of, issuer, market, economic, industry, political, regulatory, geopolitical, and other conditions.  These conditions can affect a single issuer or type of security, issuers within a broad market sector, industry or geographic region, or the equity markets in general.  Certain events can have a dramatic adverse effect on equity markets and may lead to periods of high volatility in an equity market or a segment of an equity market.

 

Growth Company Risk:  The stocks of growth companies can be more sensitive to the company’s earnings and more volatile than the market in general.

 

Value Company Risk:  The stocks of value companies can continue to be undervalued for long periods of time and not realize their expected value and can be more volatile than the market in general.

 

Foreign Risk:  Exposure to foreign markets through issuers or currencies can involve additional risks relating to market, economic, industry, political, regulatory, geopolitical, and 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 Risk:  Investments in emerging markets can involve additional and greater risks than the risks associated with investments in developed foreign markets.  Emerging markets can have less developed markets, greater custody and operational risk, 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, industry,

 

Page 2 of 4



 

MFS International Diversification Fund

 

political, regulatory, geopolitical, and other conditions, and changes in currency exchange rates impact the financial condition of companies or other issuers and may change the value in U.S. dollars of investments denominated in foreign currencies.

 

Focus Risk: Issuers in a single industry, sector, country, or region can react similarly to market, currency, political, economic, regulatory, geopolitical, and other conditions, and the fund’s performance will be affected by the conditions in the industries, sectors, countries and regions to which the fund is exposed.

 

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.

 

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 or willingness to perform in accordance with the terms of the transaction.

 

Liquidity Risk:  It may be difficult to value, and it may not be possible to sell, certain investments, types of investments, and/or investments in certain segments of the market, and the fund may have to sell certain of these investments at prices or times that are not advantageous in order to meet redemptions or other cash needs.

 

Investment Selection Risk:  MFS’ investment analysis and its selection of investments may not produce the intended results and/or can lead to an investment focus that results in the fund underperforming other funds with similar investment strategies and/or underperforming the markets in which the fund invests.

 

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.

 

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, 2017, was 17.37%. During the period(s) shown in the bar chart, the highest quarterly return was 23.90% (for the calendar quarter ended June 30, 2009) and the lowest quarterly return was (19.72)% (for the calendar quarter ended September 30, 2008).

 

Performance Table.

 

Average Annual Total Returns

(For the Periods Ended December 31, 2016)

 

Share Class

 

1 YEAR

 

5 YEARS

 

10 YEARS

 

Returns Before Taxes

 

 

 

 

 

 

 

T Shares

 

(0.34

)%

5.68

%

2.07

%

B Shares

 

(2.57

)%

5.11

%

1.70

%

C Shares

 

0.40

%

5.42

%

1.55

%

I Shares

 

2.47

%

6.48

%

2.58

%

R1 Shares

 

1.38

%

5.43

%

1.54

%

R2 Shares

 

1.97

%

5.97

%

2.05

%

R3 Shares

 

2.20

%

6.23

%

2.30

%

R4 Shares

 

2.47

%

6.49

%

2.55

%

R6 Shares

 

2.47

%

6.48

%

2.58

%

A Shares

 

(3.72

)%

4.97

%

1.69

%

Returns After Taxes on Distributions

 

 

 

 

 

 

 

A Shares

 

(4.02

)%

4.78

%

1.26

%

Returns After Taxes on Distributions and Sale of Fund Shares

 

 

 

 

 

 

 

A Shares

 

(1.61

)%

4.00

%

1.38

%

Index Comparison (Reflects no deduction for fees, expenses, or taxes)

 

 

 

 

 

 

 

MSCI All Country World (ex-US) Index (net div)

 

4.50

%

5.00

%

0.96

%

 

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-advantaged 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.

 

Page 3 of 4



 

MFS International Diversification Fund

 

Investment Adviser

 

MFS serves as the investment adviser for the fund.

 

Portfolio Manager(s)

 

Portfolio Manager

 

Since

 

Title

Thomas Melendez

 

2004

 

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 (the “NYSE”) is open for trading. You may purchase or redeem shares either by having your financial intermediary process your purchase or redemption, or through MFS Service Center, Inc. (MFSC) by overnight mail (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 T, 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, Class R6

 

None

 

None

 

As of the date of this prospectus, Class T and Class R6 shares are not being offered for sale.  Class R6 shares are expected to be offered for sale on October 2, 2017.

 

Taxes

 

If your shares are held in a taxable account, the fund’s distributions will be taxed to you as ordinary income and/or capital gains.  If your shares are held in a tax-advantaged account, you will generally be taxed only upon withdrawals from the account.

 

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/or 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.

 

Page 4 of 4