N-CSR 1 d918021dncsr.htm MFS SERIES TRUST X N-CSR MFS SERIES TRUST X N-CSR
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF

REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-04492

MFS SERIES TRUST X

(Exact name of registrant as specified in charter)

111 Huntington Avenue, Massachusetts 02199

(Address of principal executive offices) (Zip code)

Christopher R. Bohane

Massachusetts Financial Services Company

111 Huntington Avenue

Boston, Massachusetts 02199

(Name and address of agents for service)

Registrant’s telephone number, including area code: (617) 954-5000

Date of fiscal year end: May 31*

Date of reporting period: May 31, 2020

 

*

This Form N-CSR pertains to the following series of the Registrant: MFS Aggressive Growth Allocation Fund, 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 Conservative Allocation Fund, MFS Emerging Markets Equity Fund, MFS Growth Allocation Fund, MFS International Diversification Fund, MFS International Growth Fund, MFS International Intrinsic Value Fund, MFS Managed Wealth Fund, and MFS Moderate Allocation Fund. MFS International Large Cap Value Fund, a new series of the Registrant with a fiscal year end of May 31, had not commenced operations as of the reporting period end. Each remaining series of the Registrant has a fiscal year end other than May 31.


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ITEM 1.

REPORTS TO STOCKHOLDERS.

As noted above, MFS International Large Cap Value Fund, a new series of the Registrant, had not commenced operations as of May 31, 2020 and therefore there is no report to shareholders for this Fund.


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Annual Report

May 31, 2020

 

LOGO

 

MFS® Asset Allocation Funds

 

LOGO

 

MFS® Conservative Allocation Fund

MFS® Moderate Allocation Fund

MFS® Growth Allocation Fund

MFS® Aggressive Growth Allocation Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the U.S. Securities and Exchange Commission, paper copies of the fund’s annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the complete reports will be made available on the fund’s Web site (funds.mfs.com), and you will be notified by mail each time a report is posted and provided with a Web site link to access the report.

If you are already signed up to receive shareholder reports by email, you will not be affected by this change and you need not take any action. You may sign up to receive shareholder reports and other communications from the fund by email by contacting your financial intermediary (such as a broker-dealer or bank) or, if you hold your shares directly with the fund, by calling 1-800-225-2606 or by logging on to MFS Access at mfs.com.

Beginning on January 1, 2019, you may elect to receive all future reports in paper free of charge. Contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the fund, you can call 1-800-225-2606 or send an email request to orderliterature@mfs.com to let the fund know that you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account if you invest through your financial intermediary or all funds held with the MFS fund complex if you invest directly.

 

AAF-ANN


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MFS® Asset Allocation Funds

 

 

CONTENTS

 

Letter from the Executive Chair     1  
Portfolio composition     2  
Management review     6  
Performance summary     9  
Expense tables     18  
Portfolio of investments     23  
Statements of assets and liabilities     27  
Statements of operations     30  
Statements of changes in net assets     31  
Financial highlights     32  
Notes to financial statements     56  
Report of independent registered public accounting firm     70  
Trustees and officers     71  
Statement regarding liquidity risk management program     74  
Proxy voting policies and information     75  
Quarterly portfolio disclosure     75  
Further information     75  
Information about fund contracts and legal claims     75  
Federal tax information     75  
MFS® privacy notice     76  
Contact information     back cover  

The report is prepared for the general information of shareholders. It is authorized for distribution to prospective investors only when preceded or accompanied by a current prospectus.

 

NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE



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LETTER FROM THE EXECUTIVE CHAIR

 

LOGO

Dear Shareholders:

Markets experienced dramatic swings in early 2020, as the coronavirus pandemic brought the global economy to a standstill for several months. Optimism over the development of vaccines and therapeutics, along with a decline in cases in countries that had been affected by the outbreak early on, brightened the economic and market outlook during the second quarter, as did the phased reopening of US states. However, a great deal of uncertainty remains, including the possibility of a second wave of cases later this year.

Global central banks have taken aggressive, coordinated steps to cushion the economic and market fallout related to the virus, and governments are deploying unprecedented levels of fiscal stimulus. As uncertainty recedes, these measures can help build a supportive environment and encourage economic recovery; however, if markets disconnect from fundamentals, they can also sow the seeds of instability. In the aftermath of the crisis, societal changes may be likely as households, businesses, and governments adjust to a new reality, and these alterations could change the investment landscape. For investors, events, such as the COVID-19 outbreak, demonstrate the importance of having a deep understanding of company fundamentals, and we have built our global research platform to do just that.

Here at MFS®, we aim to help our clients navigate the growing complexity of the markets and world economies. Our long-term investment philosophy and commitment to the responsible allocation of capital allow us to tune out the noise and uncover what we believe are the best, most durable investment opportunities in the market. Through our powerful global investment platform, we combine collective expertise, thoughtful risk management, and long-term discipline to create sustainable value for investors.

Respectfully,

 

LOGO

Robert J. Manning

Executive Chair

MFS Investment Management

July 17, 2020

 

 

The opinions expressed in this letter are subject to change and may not be relied upon for investment advice. No forecasts can be guaranteed.

 

1


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PORTFOLIO COMPOSITION

 

MFS Conservative Allocation Fund

Portfolio target allocation

 

LOGO

 

Portfolio holdings  
MFS Total Return Bond Fund     14.7%  
MFS Limited Maturity Fund     9.7%  
MFS Inflation-Adjusted Bond Fund     9.7%  
MFS Government Securities Fund     9.5%  
MFS Growth Fund     6.2%  
MFS Research Fund     6.2%  
MFS Value Fund     6.1%  
MFS High Income Fund     5.0%  
MFS Global Bond Fund     4.9%  
MFS Mid Cap Growth Fund     4.3%  
MFS Mid Cap Value Fund     4.2%  
MFS Research International Fund     4.1%  
MFS Emerging Markets Debt Fund     3.0%  
MFS International Intrinsic Value Fund     2.1%  
MFS Emerging Markets Debt Local Currency Fund     2.1%  
MFS International Growth Fund     2.0%  
MFS Global Real Estate Fund     2.0%  
MFS Commodity Strategy Fund     2.0%  
MFS New Discovery Fund     1.1%  
MFS New Discovery Value Fund     1.0%  
Cash & Cash Equivalents     0.1%  

Portfolio actual allocation

 

LOGO

 

Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. MFS endeavors to fully invest all MFS funds-of-funds in underlying funds on a daily basis. Any divergence from 0.0% in Cash & Cash Equivalents is typically due to the timing of fund subscriptions/redemptions and the settlement of subsequent investment in/divestment from the underlying funds. While the MFS funds-of-funds’ subscriptions/redemptions are processed at the same day NAV of the underlying funds, a positive/negative cash balance will be reflected on the MFS funds-of-funds’ Statements of Assets and Liabilities until the trades with the underlying funds settle, which is typically two business days. Please see the Statements of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.

Percentages are based on net assets as of May 31, 2020.

The portfolio is actively managed and current holdings may be different.

 

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Portfolio Composition – continued

 

MFS Moderate Allocation Fund

Portfolio target allocation

 

LOGO

 

Portfolio holdings  
MFS Government Securities Fund     9.0%  
MFS Growth Fund     8.4%  
MFS Research Fund     8.3%  
MFS Value Fund     8.1%  
MFS Total Return Bond Fund     7.6%  
MFS Mid Cap Growth Fund     7.6%  
MFS Mid Cap Value Fund     7.3%  
MFS Inflation-Adjusted Bond Fund     6.7%  
MFS Research International Fund     6.1%  
MFS High Income Fund     4.9%  
MFS Global Bond Fund     4.7%  
MFS International Intrinsic Value Fund     3.1%  
MFS International Growth Fund     3.0%  
MFS Emerging Markets Debt Fund     3.0%  
MFS Global Real Estate Fund     3.0%  
MFS Commodity Strategy Fund     2.8%  
MFS Emerging Markets Debt Local Currency Fund     2.0%  
MFS New Discovery Fund     1.7%  
MFS New Discovery Value Fund     1.6%  
MFS International New Discovery Fund     1.1%  
Cash & Cash Equivalents (o)     0.0%  

Portfolio actual allocation

 

LOGO

 

 

(o)

Less than 0.1%.

Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. MFS endeavors to fully invest all MFS funds-of-funds in underlying funds on a daily basis. Any divergence from 0.0% in Cash & Cash Equivalents is typically due to the timing of fund subscriptions/redemptions and the settlement of subsequent investment in/divestment from the underlying funds. While the MFS funds-of-funds’ subscriptions/redemptions are processed at the same day NAV of the underlying funds, a positive/negative cash balance will be reflected on the MFS funds-of-funds’ Statements of Assets and Liabilities until the trades with the underlying funds settle, which is typically two business days. Please see the Statements of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.

Percentages are based on net assets as of May 31, 2020.

The portfolio is actively managed and current holdings may be different.

 

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Portfolio Composition – continued

 

MFS Growth Allocation Fund

Portfolio target allocation

 

LOGO

 

Portfolio holdings  
MFS Growth Fund     11.3%  
MFS Value Fund     10.9%  
MFS Mid Cap Growth Fund     9.6%  
MFS Mid Cap Value Fund     9.2%  
MFS Research Fund     8.2%  
MFS Research International Fund     6.9%  
MFS International Intrinsic Value Fund     5.0%  
MFS International Growth Fund     4.9%  
MFS High Income Fund     4.8%  
MFS Inflation-Adjusted Bond Fund     4.8%  
MFS Global Real Estate Fund     3.8%  
MFS Commodity Strategy Fund     3.6%  
MFS Emerging Markets Debt Fund     2.9%  
MFS Total Return Bond Fund     2.8%  
MFS New Discovery Fund     2.2%  
MFS New Discovery Value Fund     2.1%  
MFS International New Discovery Fund     2.1%  
MFS Emerging Markets Debt Local Currency Fund     1.9%  
MFS Global Bond Fund     1.8%  
MFS Emerging Markets Equity Fund     1.0%  
Cash & Cash Equivalents     0.2%  

Portfolio actual allocation

 

LOGO

 

Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. MFS endeavors to fully invest all MFS funds-of-funds in underlying funds on a daily basis. Any divergence from 0.0% in Cash & Cash Equivalents is typically due to the timing of fund subscriptions/redemptions and the settlement of subsequent investment in/divestment from the underlying funds. While the MFS funds-of-funds’ subscriptions/redemptions are processed at the same day NAV of the underlying funds, a positive/negative cash balance will be reflected on the MFS funds-of-funds’ Statements of Assets and Liabilities until the trades with the underlying funds settle, which is typically two business days. Please see the Statements of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.

Percentages are based on net assets as of May 31, 2020.

The portfolio is actively managed and current holdings may be different.

 

4


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Portfolio Composition – continued

 

MFS Aggressive Growth Allocation Fund

Portfolio target allocation

 

LOGO

 

Portfolio holdings  
MFS Growth Fund     13.5%  
MFS Value Fund     12.7%  
MFS Mid Cap Growth Fund     10.5%  
MFS Mid Cap Value Fund     9.8%  
MFS Research Fund     9.1%  
MFS International Intrinsic Value Fund     8.1%  
MFS Research International Fund     7.9%  
MFS International Growth Fund     7.9%  
MFS Global Real Estate Fund     4.7%  
MFS Commodity Strategy Fund     4.6%  
MFS International New Discovery Fund     4.0%  
MFS New Discovery Fund     2.7%  
MFS New Discovery Value Fund     2.5%  
MFS Emerging Markets Equity Fund     1.9%  
Cash & Cash Equivalents     0.1%  

Portfolio actual allocation

 

LOGO

 

Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. MFS endeavors to fully invest all MFS funds-of-funds in underlying funds on a daily basis. Any divergence from 0.0% in Cash & Cash Equivalents is typically due to the timing of fund subscriptions/redemptions and the settlement of subsequent investment in/divestment from the underlying funds. While the MFS funds-of-funds’ subscriptions/redemptions are processed at the same day NAV of the underlying funds, a positive/negative cash balance will be reflected on the MFS funds-of-funds’ Statements of Assets and Liabilities until the trades with the underlying funds settle, which is typically two business days. Please see the Statements of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.

Percentages are based on net assets as of May 31, 2020.

The portfolio is actively managed and current holdings may be different.

 

5


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MANAGEMENT REVIEW

Market Environment

Markets experienced an extraordinarily sharp selloff and in many cases an unusually rapid partial recovery late in the period. Central banks and fiscal authorities undertook astonishing levels of stimulus to offset the economic effects of government-imposed social-distancing measures implemented to slow the spread of COVID-19. Despite policymakers’ best efforts, a global recession has undoubtedly begun.

Compounding market uncertainty earlier in the coronavirus pandemic was a crash in the price of crude oil due to a sharp drop in global demand and a disagreement between Saudi Arabia and Russia over production cuts, which resulted in a price war. The subsequent decline in prices undercut oil exporters, many of which are in emerging markets, as well as a large segment of the high-yield credit market. OPEC+ later agreed on output cuts, which – along with the gradual reopening of some major economies and resultant boost in demand – helped stabilize the price of crude.

Around the world, central banks responded quickly and massively to the crisis with programs to improve liquidity and support markets. They proved largely successful in helping to restore market function, easing volatility and stimulating a market rebound at the end of the period. Monetary easing measures were complemented by large fiscal stimulus plans in developed countries. Even emerging market countries were able to implement countercyclical policies – a departure from the usual market-dictated response to risk-off crises – due to relatively manageable external liabilities and balances of payments in many countries, along with persistently low inflation.

As is often the case in a crisis, market vulnerabilities were revealed. For example, companies that added significant leverage to their balance sheets in recent years by borrowing to fund dividend payments and stock buybacks may find it difficult to follow that path in the future, and investors may not reward them if they do. Recapitalizations by some of these highly leveraged firms could dilute existing shareholders. Very long supply chains designed to squeeze out every bit of savings may be shifted closer to home markets if companies seek to put resiliency before cost after a series of supply disruptions. The aftereffects of the pandemic could affect consumer, business and government behavior in ways difficult to forecast. Also, while markets have regained lost ground more swiftly than expected, any economic recovery is likely to be protracted.

MFS Conservative Allocation Fund

Summary of Results

For the twelve months ended May 31, 2020, Class A shares of the MFS Conservative Allocation Fund (fund) provided a total return of 7.07%, at net asset value. This compares with a return of 9.42% for the fund’s benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index. The fund’s other benchmark, the MFS Conservative Allocation Fund Blended Index (Blended Index), generated a return of 8.77%. The Blended Index reflects the blended returns of equity and fixed income market indices, with percentage allocations to each index designed to resemble the equity and fixed income allocations of the fund. The market indices and related percentage allocations used to compile the Blended Index are set forth in the Performance Summary.

Factors Affecting Performance

During the reporting period, the fund’s broad diversification across fixed income funds was a notable detractor from relative performance, as diversification away from the US rates market and into credit and global markets generally held back performance. Further, underlying funds that tend to be overweight credit versus their respective market segments, such as the MFS Limited Maturity Fund and MFS Total Return Bond Fund, were among the fund’s top relative detractors during the reporting period.

Within US stock funds, the fund’s investments in mid and small capitalization strategies lagged large capitalization strategies. Additionally, value funds, generally underperformed but were partially offset by the fund’s investments in growth strategies, which outperformed.

Within international stock funds, value funds, generally underperformed but were partially offset by the fund’s investments in growth strategies, which outperformed. Additionally, strong relative performance of both the MFS International Intrinsic Value Fund and MFS Research International Fund, supported the returns as both funds outpaced their respective benchmarks.

Within the specialty funds segment, the MFS Global Real Estate Fund supported relative performance as the fund outperformed its respective benchmark.

MFS Moderate Allocation Fund

Summary of Results

For the twelve months ended May 31, 2020, Class A shares of the MFS Moderate Allocation Fund (fund) provided a total return of 7.35%, at net asset value. This compares with a return of 12.84% for the fund’s benchmark, the Standard & Poor’s 500 Stock Index. The fund’s other benchmark, the MFS Moderate Allocation Fund Blended Index (Blended Index), generated a return of 8.00%. The Blended Index reflects the blended returns of equity and fixed income market indices, with percentage allocations to each index designed to resemble the equity and fixed income allocations of the fund. The market indices and related percentage allocations used to compile the Blended Index are set forth in the Performance Summary.

 

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Management Review – continued

 

Factors Affecting Performance

During the reporting period, the fund’s broad diversification across fixed income funds was a notable detractor from relative performance, as diversification away from the US rates market and into credit and global markets generally held back performance. Further, underlying funds that tend to be overweight credit versus their respective market segments, such as the MFS Total Return Bond Fund, were among the fund’s top relative detractors during the reporting period.

Within US stock funds, the fund’s investments in mid and small capitalization strategies lagged large capitalization strategies. Additionally, value funds, generally underperformed but were partially offset by the fund’s investments in growth strategies, which outperformed.

Within international stock funds, value funds, generally underperformed but were partially offset by the fund’s investments in growth strategies, which outperformed. Additionally, strong relative performance of both the MFS International Intrinsic Value Fund and MFS Research International Fund, supported the returns as both funds outpaced their respective benchmarks.

Within the specialty funds segment, the MFS Global Real Estate Fund supported relative performance as the fund outperformed its respective benchmark.

MFS Growth Allocation Fund

Summary of Results

For the twelve months ended May 31, 2020, Class A shares of the MFS Growth Allocation Fund (fund) provided a total return of 6.41%, at net asset value. This compares with a return of 12.84% for the fund’s benchmark, the Standard & Poor’s 500 Stock Index. The fund’s other benchmark, the MFS Growth Allocation Fund Blended Index (Blended Index), generated a return of 6.73%. The Blended Index reflects the blended returns of equity market indices, with percentage allocations to each index designed to resemble the equity allocations of the fund. The market indices and related percentage allocations used to compile the Blended Index are set forth in the Performance Summary.

Factors Affecting Performance

During the reporting period, the fund’s broad diversification across fixed income funds was a notable detractor from relative performance, as diversification away from the US rates market and into credit and global markets generally held back performance. Further, underlying funds that tend to be overweight credit versus their respective market segments were among the fund’s top relative detractors during the reporting period.

Within US stock funds, the fund’s investments in mid and small capitalization strategies lagged large capitalization strategies. Additionally, value funds, generally underperformed but were partially offset by the fund’s investments in growth strategies, which outperformed.

Within international stock funds, value funds, generally underperformed but were partially offset by the fund’s investments in growth strategies, which outperformed. Additionally, strong relative performance of both the MFS International Intrinsic Value Fund and MFS Research International Fund, supported the returns as both funds outpaced their respective benchmarks.

Within the specialty funds segment, the MFS Global Real Estate Fund supported relative performance as the fund outperformed its respective benchmark.

MFS Aggressive Growth Allocation Fund

Summary of Results

For the twelve months ended May 31, 2020, Class A shares of the MFS Aggressive Growth Allocation Fund (fund) provided a total return of 5.97%, at net asset value. This compares with a return of 12.84% for the fund’s benchmark, the Standard & Poor’s 500 Stock Index. The fund’s other benchmark, the MFS Aggressive Growth Allocation Fund Blended Index (Blended Index), generated a return of 4.80%. The Blended Index reflects the blended returns of equity and fixed income market indices, with percentage allocations to each index designed to resemble the equity and fixed income allocations of the fund. The market indices and related percentage allocations used to compile the Blended Index are set forth in the Performance Summary.

Factors Affecting Performance

Within US stock funds, the fund’s investments in mid and small capitalization strategies lagged large capitalization strategies. Additionally, value funds, generally underperformed but were partially offset by the fund’s investments in growth strategies, which outperformed.

Within international stock funds, value funds, generally underperformed but were partially offset by the fund’s investments in growth strategies, which outperformed. Additionally, strong relative performance of both the MFS International Intrinsic Value Fund and MFS Research International Fund, supported the returns as both funds outpaced their respective benchmarks.

 

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Management Review – continued

 

Within the specialty funds segment, the MFS Global Real Estate Fund supported relative performance as the fund outperformed its respective benchmark.

Respectfully,

Portfolio Manager(s)

Joseph Flaherty and Natalie Shapiro

The views expressed in this report are those of the portfolio manager(s) only through the end of the period of the report as stated on the cover and do not necessarily reflect the views of MFS or any other person in the MFS organization. These views are subject to change at any time based on market or other conditions, and MFS disclaims any responsibility to update such views. These views may not be relied upon as investment advice or an indication of trading intent on behalf of any MFS portfolio. References to specific securities are not recommendations of such securities, and may not be representative of any MFS portfolio’s current or future investments.

 

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PERFORMANCE SUMMARY THROUGH 5/31/20

The following charts illustrate a representative class of each fund’s historical performance in comparison to its benchmark(s). Performance results include the deduction of the maximum applicable sales charge and reflect the percentage change in net asset value, including reinvestment of dividends and capital gains distributions. The performance of other share classes will be greater than or less than that of the class depicted below. Benchmarks are unmanaged and may not be invested in directly. Benchmark returns do not reflect sales charges, commissions or expenses. (See Notes to Performance Summary.)

Performance data shown represents past performance and is 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. The performance shown does not reflect the deduction of taxes, if any, that a shareholder would pay on fund distributions or the redemption of fund shares.

MFS Conservative Allocation Fund

Growth of a hypothetical $10,000 investment

 

LOGO

Average annual total returns through 5/31/20

Average annual without sales charge

 

     Share Class      Class Inception Date      1-yr      5-yr      10-yr     
   
    A      6/28/02      7.07%      4.88%      6.26%    
   
    B      6/28/02      6.31%      4.10%      5.47%    
   
    C      6/28/02      6.24%      4.09%      5.47%    
   
    I      6/28/02      7.34%      5.15%      6.53%    
   
    R1      4/01/05      6.27%      4.11%      5.47%    
   
    R2      10/31/03      6.81%      4.62%      5.99%    
   
    R3      4/01/05      7.14%      4.89%      6.27%    
   
    R4      4/01/05      7.34%      5.14%      6.53%    
   
    529A      7/31/02      7.08%      4.86%      6.21%    
   
    529B      7/31/02      6.46%      4.10%      5.44%    
    529C      7/31/02      6.20%      4.05%      5.41%    
Comparative benchmark(s)                 
     Bloomberg Barclays U.S. Aggregate Bond Index (f)      9.42%      3.94%      3.92%     
     MFS Conservative Allocation Fund Blended Index (f)(w)      8.77%      5.31%      6.69%     
     Bloomberg Commodity Index (f)      (17.06)%      (7.79)%      (6.00)%     
     FTSE EPRA Nareit Developed Real Estate Index (net div) (f)      (17.08)%      (0.06)%      5.81%     
     MSCI EAFE Index (net div) (f)      (2.81)%      0.79%      5.27%     
     Standard & Poor’s 500 Stock Index (f)      12.84%      9.86%      13.15%     

 

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Performance Summary – continued

 

Average annual with sales charge                 
     Share Class              1-yr      5-yr      10-yr     
    A
With Initial Sales Charge (5.75%)
     0.92%      3.65%      5.64%    
    B
With CDSC (Declining over six years from 4% to 0%) (v)
     2.31%      3.76%      5.47%    
    C
With CDSC (1% for 12 months) (v)
     5.24%      4.09%      5.47%    
    529A
With Initial Sales Charge (5.75%)
     0.92%      3.62%      5.58%    
    529B
With CDSC (Declining over six years from 4% to 0%) (v)
     2.46%      3.76%      5.44%    
    529C
With CDSC (1% for 12 months) (v)
     5.20%      4.05%      5.41%    

CDSC – Contingent Deferred Sales Charge.

Class I, R1, R2, R3, and R4 shares do not have a sales charge.

 

(f)

Source: FactSet Research Systems Inc.

(v)

Assuming redemption at the end of the applicable period.

(w)

As of May 31, 2020, the MFS Conservative Allocation Fund Blended Index (a custom index) was comprised of 60% Bloomberg Barclays U.S. Aggregate Bond Index, 28% Standard & Poor’s 500 Stock Index, 8% MSCI EAFE Index (net div), 2% Bloomberg Commodity Index, and 2% FTSE EPRA Nareit Developed Real Estate Index (net div). The components and weightings of the Blended Index may have differed during the period, and may differ in the future.

 

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Performance Summary – continued

 

MFS Moderate Allocation Fund

Growth of a hypothetical $10,000 investment

 

LOGO

Average annual total returns through 5/31/20

Average annual without sales charge

 

     Share Class      Class Inception Date      1-yr      5-yr      10-yr     
   
    A      6/28/02      7.35%      5.77%      7.77%    
   
    B      6/28/02      6.57%      4.97%      6.96%    
   
    C      6/28/02      6.55%      4.97%      6.97%    
   
    I      6/28/02      7.62%      6.02%      8.04%    
   
    R1      4/01/05      6.49%      4.96%      6.96%    
   
    R2      10/31/03      7.06%      5.49%      7.50%    
   
    R3      4/01/05      7.35%      5.75%      7.77%    
   
    R4      4/01/05      7.62%      6.01%      8.04%    
   
    529A      7/31/02      7.34%      5.72%      7.72%    
   
    529B      7/31/02      6.63%      4.94%      6.92%    
    529C      7/31/02      6.52%      4.92%      6.91%    
Comparative benchmark(s)                 
     Standard & Poor’s 500 Stock Index (f)      12.84%      9.86%      13.15%     
     MFS Moderate Allocation Fund Blended Index (f)(w)      8.00%      5.73%      7.81%     
     Bloomberg Barclays U.S. Aggregate Bond Index (f)      9.42%      3.94%      3.92%     
     Bloomberg Commodity Index (f)      (17.06)%      (7.79)%      (6.00)%     
     FTSE EPRA Nareit Developed Real Estate Index (net div) (f)      (17.08)%      (0.06)%      5.81%     
     MSCI EAFE Index (net div) (f)      (2.81)%      0.79%      5.27%     

 

11


Table of Contents

Performance Summary – continued

 

Average annual with sales charge                 
     Share Class              1-yr      5-yr      10-yr     
    A
With Initial Sales Charge (5.75%)
     1.17%      4.52%      7.14%    
    B
With CDSC (Declining over six years from 4% to 0%) (v)
     2.57%      4.63%      6.96%    
    C
With CDSC (1% for 12 months) (v)
     5.55%      4.97%      6.97%    
    529A
With Initial Sales Charge (5.75%)
     1.17%      4.47%      7.09%    
    529B
With CDSC (Declining over six years from 4% to 0%) (v)
     2.63%      4.61%      6.92%    
    529C
With CDSC (1% for 12 months) (v)
     5.52%      4.92%      6.91%    

CDSC – Contingent Deferred Sales Charge.

Class I, R1, R2, R3, and R4 shares do not have a sales charge.

 

(f)

Source: FactSet Research Systems Inc.

(v)

Assuming redemption at the end of the applicable period.

(w)

As of May 31, 2020, the MFS Moderate Allocation Fund Blended Index (a custom index) was comprised of 40% Bloomberg Barclays U.S. Aggregate Bond Index, 41% Standard & Poor’s 500 Stock Index, 13% MSCI EAFE Index (net div), 3% Bloomberg Commodity Index, and 3% FTSE EPRA Nareit Developed Real Estate Index (net div). The components and weightings of the Blended Index may have differed during the period, and may differ in the future.

 

12


Table of Contents

Performance Summary – continued

 

MFS Growth Allocation Fund

Growth of a hypothetical $10,000 investment

 

LOGO

Average annual total returns through 5/31/20

Average annual without sales charge

 

     Share Class      Class Inception Date      1-yr      5-yr      10-yr     
   
    A      6/28/02      6.41%      6.36%      8.99%    
   
    B      6/28/02      5.56%      5.56%      8.18%    
   
    C      6/28/02      5.56%      5.56%      8.18%    
   
    I      6/28/02      6.69%      6.62%      9.26%    
   
    R1      4/01/05      5.59%      5.56%      8.18%    
   
    R2      10/31/03      6.12%      6.09%      8.72%    
   
    R3      4/01/05      6.35%      6.35%      8.99%    
   
    R4      4/01/05      6.66%      6.62%      9.26%    
   
    529A      7/31/02      6.33%      6.31%      8.94%    
   
    529B      7/31/02      5.52%      5.51%      8.12%    
    529C      7/31/02      5.57%      5.51%      8.12%    
Comparative benchmark(s)                 
     Standard & Poor’s 500 Stock Index (f)      12.84%      9.86%      13.15%     
     MFS Growth Allocation Fund Blended Index (f)(w)      6.73%      5.92%      8.78%     
     Bloomberg Barclays U.S. Aggregate Bond Index (f)      9.42%      3.94%      3.92%     
     Bloomberg Commodity Index (f)      (17.06)%      (7.79)%      (6.00)%     
     FTSE EPRA Nareit Developed Real Estate Index (net div) (f)      (17.08)%      (0.06)%      5.81%     
     MSCI EAFE Index (net div) (f)      (2.81)%      0.79%      5.27%     

 

13


Table of Contents

Performance Summary – continued

 

Average annual with sales charge                 
     Share Class              1-yr      5-yr      10-yr     
    A
With Initial Sales Charge (5.75%)
     0.29%      5.11%      8.35%    
    B
With CDSC (Declining over six years from 4% to 0%) (v)
     1.56%      5.24%      8.18%    
    C
With CDSC (1% for 12 months) (v)
     4.56%      5.56%      8.18%    
    529A
With Initial Sales Charge (5.75%)
     0.21%      5.06%      8.30%    
    529B
With CDSC (Declining over six years from 4% to 0%) (v)
     1.52%      5.19%      8.12%    
    529C
With CDSC (1% for 12 months) (v)
     4.57%      5.51%      8.12%    

CDSC – Contingent Deferred Sales Charge.

Class I, R1, R2, R3, and R4 shares do not have a sales charge.

 

(f)

Source: FactSet Research Systems Inc.

(v)

Assuming redemption at the end of the applicable period.

(w)

As of May 31, 2020, the MFS Growth Allocation Fund Blended Index (a custom index) was comprised of 52% Standard & Poor’s 500 Stock Index, 20% Bloomberg Barclays U.S. Aggregate Bond Index, 20% MSCI EAFE Index (net div), 4% Bloomberg Commodity Index, and 4% FTSE EPRA Nareit Developed Real Estate Index (net div). The components and weightings of the Blended Index may have differed during the period, and may differ in the future.

 

14


Table of Contents

Performance Summary – continued

 

MFS Aggressive Growth Allocation Fund

Growth of a hypothetical $10,000 investment

 

LOGO

Average annual total returns through 5/31/20

Average annual without sales charge

 

     Share Class      Class Inception Date      1-yr      5-yr      10-yr     
   
    A      6/28/02      5.97%      6.90%      10.02%    
   
    B      6/28/02      5.18%      6.09%      9.20%    
   
    C      6/28/02      5.20%      6.10%      9.20%    
   
    I      6/28/02      6.28%      7.16%      10.30%    
   
    R1      4/01/05      5.21%      6.10%      9.20%    
   
    R2      10/31/03      5.73%      6.64%      9.75%    
   
    R3      4/01/05      6.00%      6.90%      10.02%    
   
    R4      4/01/05      6.29%      7.16%      10.30%    
   
    529A      7/31/02      5.93%      6.85%      9.96%    
   
    529B      7/31/02      5.15%      6.05%      9.14%    
    529C      7/31/02      5.17%      6.05%      9.15%    
Comparative benchmark(s)                 
     Standard & Poor’s 500 Stock Index (f)      12.84%      9.86%      13.15%     
     MFS Aggressive Growth Allocation Fund Blended Index (f)(w)      4.80%      5.76%      9.48%     
     Bloomberg Commodity Index (f)      (17.06)%      (7.79)%      (6.00)%     
     FTSE EPRA Nareit Developed Real Estate Index (net div) (f)      (17.08)%      (0.06)%      5.81%     
     MSCI EAFE Index (net div) (f)      (2.81)%      0.79%      5.27%     

 

15


Table of Contents

Performance Summary – continued

 

Average annual with sales charge                 
     Share Class              1-yr      5-yr      10-yr     
    A
With Initial Sales Charge (5.75%)
     (0.12)%      5.64%      9.37%    
    B
With CDSC (Declining over six years from 4% to 0%) (v)
     1.18%      5.77%      9.20%    
    C
With CDSC (1% for 12 months) (v)
     4.20%      6.10%      9.20%    
    529A
With Initial Sales Charge (5.75%)
     (0.16)%      5.59%      9.31%    
    529B
With CDSC (Declining over six years from 4% to 0%) (v)
     1.15%      5.73%      9.14%    
    529C
With CDSC (1% for 12 months) (v)
     4.17%      6.05%      9.15%    

CDSC – Contingent Deferred Sales Charge.

Class I, R1, R2, R3, and R4 shares do not have a sales charge.

 

(f)

Source: FactSet Research Systems Inc.

(v)

Assuming redemption at the end of the applicable period.

(w)

As of May 31, 2020, the MFS Aggressive Growth Allocation Fund Blended Index (a custom index) was comprised of 60% Standard & Poor’s 500 Stock Index, 30% MSCI EAFE Index (net div), 5% Bloomberg Commodity Index, and 5% FTSE EPRA Nareit Developed Real Estate Index (net div). The components and weightings of the Blended Index may have differed during the period, and may differ in the future.

Benchmark Definition(s)

Bloomberg Barclays U.S. Aggregate Bond Index – a market capitalization-weighted index that measures the performance of the U.S. investment-grade, fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities with at least one year to final maturity. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom, and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.

Bloomberg Commodity Index – a highly liquid and diversified benchmark for the commodity futures market. The index tracks trades on futures contracts for physical commodities, such as energy (petroleum, gas), precious metals (gold, silver), industrial metals (zinc, copper), grains (corn, wheat), livestock (pork bellies), among others, and are traded in a variety of currencies.

FTSE EPRA Nareit Developed Real Estate Index (net div) – measures the performance of eligible real estate equities worldwide that generate a majority of their revenue and income through the ownership, disposure and development of income-producing real estate. FTSE International Limited (“FTSE”)© FTSE 2019. “FTSE®” is a trademark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. “FT-SE®”, “FOOTSIE®” and “FTSE4GOOD®” are trademarks of the London Stock Exchange Group companies. “Nareit®” is a trademark of the National Association of Real Estate Investment Trusts (“Nareit”) and “EPRA®” is a trademark of the European Public Real Estate Association (“EPRA”) and all are used by FTSE under license. The FTSE EPRA Nareit Developed Real Estate Index is calculated by FTSE. Neither FTSE, Euronext N.V., Nareit, nor EPRA sponsor, endorse, or promote this product and are not in any way connected to it and do not accept any liability. All intellectual property rights in the index values and constituent list vests in FTSE, Euronext N.V., Nareit, and EPRA. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

MSCI EAFE (Europe, Australasia, Far East) Index (net div) – a market capitalization-weighted index that is designed to measure equity market performance in the developed markets, excluding the U.S. and Canada. Morgan Stanley Capital International (“MSCI”) makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed, or produced by MSCI.

Standard & Poor’s 500 Stock Index – a market capitalization-weighted index of 500 widely held equity securities, designed to measure broad U.S. equity performance. “Standard & Poor’s®” and “S&P®” are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and sublicensed for certain purposes by MFS. The S&P 500® is a product of S&P Dow Jones Indices LLC, and has been licensed for use by MFS. MFS’s product(s) is not sponsored, endorsed, sold, or promoted by S&P

 

16


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Performance Summary – continued

 

Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates, and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing in such product(s).

It is not possible to invest directly in an index.

Notes to Performance Summary

Class 529 shares are only available in conjunction with qualified tuition programs, such as the MFS 529 Savings Plan. There also is an additional fee, which is detailed in the program description, on qualified tuition programs. If this fee was reflected, the performance for Class 529 shares would have been lower. This annual fee is waived for Oregon residents and for those accounts with assets of $25,000 or more.

Average annual total return represents the average annual change in value for each share class for the periods presented.

Performance results reflect any applicable expense subsidies and waivers in effect during the periods shown. Without such subsidies and waivers each fund’s performance results would be less favorable. Please see the prospectus and financial statements for complete details.

Performance results do not include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles and may differ from amounts reported in the financial highlights.

From time to time the funds may receive proceeds from litigation settlements, without which performance would be lower.

 

17


Table of Contents

EXPENSE TABLES

Fund expenses borne by the shareholders during the period, December 1, 2019 through May 31, 2020

As a shareholder of the funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on certain purchase or redemption payments, and (2) ongoing costs, including distribution and service (12b-1) fees; and other fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the funds and to compare these costs with the ongoing costs of investing in other mutual funds.

In addition to the fees and expenses which each fund bears directly, each fund indirectly bears a pro rata share of the fees and expenses of the underlying funds in which each fund invests. Because the underlying funds have varied expenses and fee levels and each fund may own different proportions of the underlying funds at different times, the amount of fees and expenses incurred indirectly by each fund will vary. If these transactional and indirect costs were included, your costs would have been higher.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period December 1, 2019 through May 31, 2020.

Actual Expenses

The first line for each share class in the following tables provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class in the following tables provides information about hypothetical account values and hypothetical expenses based on each fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in each fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line for each share class in the tables is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

 

18


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Expense Tables – continued

 

MFS CONSERVATIVE ALLOCATION FUND

 

Share
Class
       Annualized
Expense
Ratio
    Beginning
Account Value
12/01/19
   

Ending

Account Value
5/31/20

   

Expenses

Paid During

Period (p)

12/01/19-5/31/20

 
A   Actual     0.33%       $1,000.00       $1,003.70       $1.65  
  Hypothetical (h)     0.33%       $1,000.00       $1,023.35       $1.67  
B   Actual     1.08%       $1,000.00       $1,000.04       $5.40  
  Hypothetical (h)     1.08%       $1,000.00       $1,019.60       $5.45  
C   Actual     1.08%       $1,000.00       $999.84       $5.40  
  Hypothetical (h)     1.08%       $1,000.00       $1,019.60       $5.45  
I   Actual     0.08%       $1,000.00       $1,004.95       $0.40  
  Hypothetical (h)     0.08%       $1,000.00       $1,024.60       $0.40  
R1   Actual     1.08%       $1,000.00       $999.70       $5.40  
  Hypothetical (h)     1.08%       $1,000.00       $1,019.60       $5.45  
R2   Actual     0.58%       $1,000.00       $1,001.83       $2.90  
  Hypothetical (h)     0.58%       $1,000.00       $1,022.10       $2.93  
R3   Actual     0.33%       $1,000.00       $1,003.71       $1.65  
  Hypothetical (h)     0.33%       $1,000.00       $1,023.35       $1.67  
R4   Actual     0.08%       $1,000.00       $1,004.37       $0.40  
  Hypothetical (h)     0.08%       $1,000.00       $1,024.60       $0.40  
529A   Actual     0.37%       $1,000.00       $1,003.56       $1.85  
  Hypothetical (h)     0.37%       $1,000.00       $1,023.15       $1.87  
529B   Actual     0.78%       $1,000.00       $1,001.90       $3.90  
  Hypothetical (h)     0.78%       $1,000.00       $1,021.10       $3.94  
529C   Actual     1.12%       $1,000.00       $998.89       $5.60  
  Hypothetical (h)     1.12%       $1,000.00       $1,019.40       $5.65  

 

  (h)

5% class return per year before expenses.

  (p)

“Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. In addition to the fees and expenses which the fund bears directly, the fund indirectly bears a pro rata share of the fees and expenses of the underlying funds in which the fund invests. If these indirect costs were included, your costs would have been higher.

Notes to Expense Table

For the MFS Conservative Allocation Fund, for the period from March 1, 2020 through May 31, 2020, the distribution fee for Class 529B was not imposed. Had the distribution fee been imposed throughout the entire six month period, the annualized expense ratio, the actual expenses paid during the period, and the hypothetical expenses paid during the period would have been approximately 1.12%, $5.61, and $5.65 for Class 529B. See Note 3 in the Notes to Financial Statements for additional information.

For the MFS Conservative Allocation Fund, each class with a Rule 12b-1 service fee is subject to a rebate of a portion of such fee. Such rebates are included in the expense ratios above and are outside of the expense limitation arrangement. For Class 529A, Class 529B, and Class 529C shares, this rebate reduced the expense ratios above by 0.01%. See Note 3 in the Notes to Financial Statements for additional information.

 

19


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Expense Tables – continued

 

MFS MODERATE ALLOCATION FUND

 

Share
Class
       Annualized
Expense
Ratio
    Beginning
Account Value
12/01/19
   

Ending

Account Value
5/31/20

   

Expenses

Paid During

Period (p)

12/01/19-5/31/20

 
A   Actual     0.34%       $1,000.00       $989.30       $1.69  
  Hypothetical (h)     0.34%       $1,000.00       $1,023.30       $1.72  
B   Actual     1.09%       $1,000.00       $985.50       $5.41  
  Hypothetical (h)     1.09%       $1,000.00       $1,019.55       $5.50  
C   Actual     1.09%       $1,000.00       $986.20       $5.41  
  Hypothetical (h)     1.09%       $1,000.00       $1,019.55       $5.50  
I   Actual     0.09%       $1,000.00       $990.70       $0.45  
  Hypothetical (h)     0.09%       $1,000.00       $1,024.55       $0.46  
R1   Actual     1.09%       $1,000.00       $985.43       $5.41  
  Hypothetical (h)     1.09%       $1,000.00       $1,019.55       $5.50  
R2   Actual     0.59%       $1,000.00       $988.24       $2.93  
  Hypothetical (h)     0.59%       $1,000.00       $1,022.05       $2.98  
R3   Actual     0.34%       $1,000.00       $989.19       $1.69  
  Hypothetical (h)     0.34%       $1,000.00       $1,023.30       $1.72  
R4   Actual     0.09%       $1,000.00       $990.56       $0.45  
  Hypothetical (h)     0.09%       $1,000.00       $1,024.55       $0.46  
529A   Actual     0.39%       $1,000.00       $989.56       $1.94  
  Hypothetical (h)     0.39%       $1,000.00       $1,023.05       $1.97  
529B   Actual     0.90%       $1,000.00       $986.99       $4.47  
  Hypothetical (h)     0.90%       $1,000.00       $1,020.50       $4.55  
529C   Actual     1.14%       $1,000.00       $985.75       $5.66  
  Hypothetical (h)     1.14%       $1,000.00       $1,019.30       $5.76  

 

  (h)

5% class return per year before expenses.

  (p)

“Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. In addition to the fees and expenses which the fund bears directly, the fund indirectly bears a pro rata share of the fees and expenses of the underlying funds in which the fund invests. If these indirect costs were included, your costs would have been higher.

Notes to Expense Table

For the MFS Moderate Allocation Fund, for the period from April 1, 2020 through May 31, 2020, the distribution fee for Class 529B was not imposed. Had the distribution fee been imposed throughout the entire six month period, the annualized expense ratio, the actual expenses paid during the period, and the hypothetical expenses paid during the period would have been approximately 1.14%, $5.66, and $5.76 for Class 529B. See Note 3 in the Notes to Financial Statements for additional information.

For the MFS Moderate Allocation Fund, each class with a Rule 12b-1 service fee is subject to a rebate of a portion of such fee. Such rebates are included in the expense ratios above and are outside of the expense limitation arrangement. For Class 529A and Class 529B shares, this rebate reduced the expense ratios above by 0.01%. See Note 3 in the Notes to Financial Statements for additional information.

 

20


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Expense Tables – continued

 

MFS GROWTH ALLOCATION FUND

 

Share
Class
       Annualized
Expense
Ratio
    Beginning
Account Value
12/01/19
   

Ending

Account Value
5/31/20

   

Expenses

Paid During

Period (p)

12/01/19-5/31/20

 
A   Actual     0.35%       $1,000.00       $966.30       $1.72  
  Hypothetical (h)     0.35%       $1,000.00       $1,023.25       $1.77  
B   Actual     1.10%       $1,000.00       $962.57       $5.40  
  Hypothetical (h)     1.10%       $1,000.00       $1,019.50       $5.55  
C   Actual     1.10%       $1,000.00       $962.47       $5.40  
  Hypothetical (h)     1.10%       $1,000.00       $1,019.50       $5.55  
I   Actual     0.10%       $1,000.00       $967.57       $0.49  
  Hypothetical (h)     0.10%       $1,000.00       $1,024.50       $0.51  
R1   Actual     1.10%       $1,000.00       $962.71       $5.40  
  Hypothetical (h)     1.10%       $1,000.00       $1,019.50       $5.55  
R2   Actual     0.60%       $1,000.00       $964.66       $2.95  
  Hypothetical (h)     0.60%       $1,000.00       $1,022.00       $3.03  
R3   Actual     0.35%       $1,000.00       $965.83       $1.72  
  Hypothetical (h)     0.35%       $1,000.00       $1,023.25       $1.77  
R4   Actual     0.10%       $1,000.00       $967.23       $0.49  
  Hypothetical (h)     0.10%       $1,000.00       $1,024.50       $0.51  
529A   Actual     0.39%       $1,000.00       $965.67       $1.92  
  Hypothetical (h)     0.39%       $1,000.00       $1,023.05       $1.97  
529B   Actual     1.14%       $1,000.00       $962.22       $5.59  
  Hypothetical (h)     1.14%       $1,000.00       $1,019.30       $5.76  
529C   Actual     1.14%       $1,000.00       $962.20       $5.59  
  Hypothetical (h)     1.14%       $1,000.00       $1,019.30       $5.76  

 

  (h)

5% class return per year before expenses.

  (p)

“Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. In addition to the fees and expenses which the fund bears directly, the fund indirectly bears a pro rata share of the fees and expenses of the underlying funds in which the fund invests. If these indirect costs were included, your costs would have been higher.

Notes to Expense Table

For the MFS Growth Allocation Fund, each class with a Rule 12b-1 service fee is subject to a rebate of a portion of such fee. Such rebates are included in the expense ratios above and are outside of the expense limitation arrangement. For Class 529A, Class 529B, and Class 529C shares, this rebate reduced the expense ratios above by 0.01%. See Note 3 in the Notes to Financial Statements for additional information.

 

21


Table of Contents

Expense Tables – continued

 

MFS AGGRESSIVE GROWTH ALLOCATION FUND

 

Share
Class
       Annualized
Expense
Ratio
    Beginning
Account Value
12/01/19
   

Ending

Account Value
5/31/20

   

Expenses

Paid During

Period (p)

12/01/19-5/31/20

 
A   Actual     0.38%       $1,000.00       $951.12       $1.85  
  Hypothetical (h)     0.38%       $1,000.00       $1,023.10       $1.92  
B   Actual     1.13%       $1,000.00       $947.77       $5.50  
  Hypothetical (h)     1.13%       $1,000.00       $1,019.35       $5.70  
C   Actual     1.13%       $1,000.00       $947.70       $5.50  
  Hypothetical (h)     1.13%       $1,000.00       $1,019.35       $5.70  
I   Actual     0.13%       $1,000.00       $952.60       $0.63  
  Hypothetical (h)     0.13%       $1,000.00       $1,024.35       $0.66  
R1   Actual     1.13%       $1,000.00       $947.82       $5.50  
  Hypothetical (h)     1.13%       $1,000.00       $1,019.35       $5.70  
R2   Actual     0.63%       $1,000.00       $950.22       $3.07  
  Hypothetical (h)     0.63%       $1,000.00       $1,021.85       $3.18  
R3   Actual     0.38%       $1,000.00       $951.69       $1.85  
  Hypothetical (h)     0.38%       $1,000.00       $1,023.10       $1.92  
R4   Actual     0.13%       $1,000.00       $952.73       $0.63  
  Hypothetical (h)     0.13%       $1,000.00       $1,024.35       $0.66  
529A   Actual     0.42%       $1,000.00       $951.13       $2.05  
  Hypothetical (h)     0.42%       $1,000.00       $1,022.90       $2.12  
529B   Actual     1.18%       $1,000.00       $947.80       $5.75  
  Hypothetical (h)     1.18%       $1,000.00       $1,019.10       $5.96  
529C   Actual     1.17%       $1,000.00       $947.49       $5.70  
  Hypothetical (h)     1.17%       $1,000.00       $1,019.15       $5.91  

 

  (h)

5% class return per year before expenses.

  (p)

“Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. In addition to the fees and expenses which the fund bears directly, the fund indirectly bears a pro rata share of the fees and expenses of the underlying funds in which the fund invests. If these indirect costs were included, your costs would have been higher.

Notes to Expense Table

For the MFS Aggressive Growth Allocation Fund, each class with a Rule 12b-1 service fee is subject to a rebate of a portion of such fee. Such rebates are included in the expense ratios above and are outside of the expense limitation arrangement. For Class 529A and Class 529C shares, this rebate reduced the expense ratios above by 0.01%. See Note 3 in the Notes to Financial Statements for additional information.

 

22


Table of Contents

PORTFOLIO OF INVESTMENTS

5/31/20

 

The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.

MFS CONSERVATIVE ALLOCATION FUND

 

Investment Companies (h) - 99.9%                  
Issuer    Shares/Par      Value ($)  
Bond Funds - 58.6%                  
MFS Emerging Markets Debt Fund - Class R6      6,516,340      $ 91,489,415  
MFS Emerging Markets Debt Local Currency Fund - Class R6      9,920,960        62,105,211  
MFS Global Bond Fund - Class R6      16,321,991        148,203,673  
MFS Government Securities Fund - Class R6      27,441,890        286,218,916  
MFS High Income Fund - Class R6      46,436,440        150,918,431  
MFS Inflation-Adjusted Bond Fund - Class R6      26,916,650        292,583,981  
MFS Limited Maturity Fund - Class R6      49,045,595        294,273,570  
MFS Total Return Bond Fund - Class R6      39,532,670        444,742,536  
              $ 1,770,535,733  
International Stock Funds - 8.2%                  
MFS International Growth Fund - Class R6      1,818,831      $ 61,476,483  
MFS International Intrinsic Value Fund - Class R6      1,396,929        62,344,955  
MFS Research International Fund - Class R6      7,044,632        124,549,084  
              $ 248,370,522  
Specialty Funds - 4.0%                  
MFS Commodity Strategy Fund - Class R6      14,106,630      $ 59,529,980  
MFS Global Real Estate Fund - Class R6      4,107,262        61,198,206  
              $ 120,728,186  
U.S. Stock Funds - 29.1%                  
MFS Growth Fund - Class R6      1,377,927      $ 187,108,696  
MFS Mid Cap Growth Fund - Class R6      5,465,780        128,445,824  
MFS Mid Cap Value Fund - Class R6      6,054,627        126,723,349  
MFS New Discovery Fund - Class R6      997,537        32,669,315  
MFS New Discovery Value Fund - Class R6      2,418,052        31,869,927  
MFS Research Fund - Class R6      4,209,919        186,667,819  
MFS Value Fund - Class R6      4,797,704        185,767,111  
              $ 879,252,041  
Money Market Funds - 0.0%                  
MFS Institutional Money Market Portfolio, 0.19% (v)      305      $ 305  
Total Investment Companies (Identified Cost, $2,327,607,272)             $ 3,018,886,787  
Other Assets, Less Liabilities - 0.1%               1,601,024  
Net Assets - 100.0%             $ 3,020,487,811  

See Portfolio Footnotes and Notes to Financial Statements

 

23


Table of Contents

Portfolio of Investments – continued

 

MFS MODERATE ALLOCATION FUND

 

Investment Companies (h) - 100.0%                  
Issuer    Shares/Par      Value ($)  
Bond Funds - 38.0%                  
MFS Emerging Markets Debt Fund - Class R6      11,514,604      $ 161,665,039  
MFS Emerging Markets Debt Local Currency Fund - Class R6      17,518,052        109,663,005  
MFS Global Bond Fund - Class R6      28,426,298        258,110,788  
MFS Government Securities Fund - Class R6      47,117,383        491,434,310  
MFS High Income Fund - Class R6      82,685,038        268,726,372  
MFS Inflation-Adjusted Bond Fund - Class R6      33,508,714        364,239,717  
MFS Total Return Bond Fund - Class R6      37,040,445        416,705,010  
              $ 2,070,544,241  
International Stock Funds - 13.3%                  
MFS International Growth Fund - Class R6      4,903,461      $ 165,736,994  
MFS International Intrinsic Value Fund - Class R6      3,756,799        167,665,930  
MFS International New Discovery Fund - Class R6      1,816,746        57,391,015  
MFS Research International Fund - Class R6      18,843,397        333,151,254  
              $ 723,945,193  
Specialty Funds - 5.8%                  
MFS Commodity Strategy Fund - Class R6      36,265,865      $ 153,041,949  
MFS Global Real Estate Fund - Class R6      10,823,110        161,264,343  
              $ 314,306,292  
U.S. Stock Funds - 42.9%                  
MFS Growth Fund - Class R6      3,373,833      $ 458,132,759  
MFS Mid Cap Growth Fund - Class R6      17,601,720        413,640,415  
MFS Mid Cap Value Fund - Class R6      18,946,696        396,554,349  
MFS New Discovery Fund - Class R6      2,810,457        92,042,491  
MFS New Discovery Value Fund - Class R6      6,545,902        86,274,988  
MFS Research Fund - Class R6      10,189,656        451,809,353  
MFS Value Fund - Class R6      11,374,369        440,415,562  
              $ 2,338,869,917  
Money Market Funds - 0.0%                  
MFS Institutional Money Market Portfolio, 0.19% (v)      3,118,448      $ 3,118,760  
Total Investment Companies (Identified Cost, $3,844,893,237)             $ 5,450,784,403  
Other Assets, Less Liabilities - (0.0)%               (678,314)  
Net Assets - 100.0%             $ 5,450,106,089  

See Portfolio Footnotes and Notes to Financial Statements

 

24


Table of Contents

Portfolio of Investments – continued

 

MFS GROWTH ALLOCATION FUND

 

Investment Companies (h) - 100.0%                  
Issuer    Shares/Par      Value ($)  
Bond Funds - 19.0%                  
MFS Emerging Markets Debt Fund - Class R6      10,083,202      $ 141,568,155  
MFS Emerging Markets Debt Local Currency Fund - Class R6      15,324,456        95,931,094  
MFS Global Bond Fund - Class R6      9,941,118        90,265,356  
MFS High Income Fund - Class R6      73,263,366        238,105,939  
MFS Inflation-Adjusted Bond Fund - Class R6      21,810,257        237,077,495  
MFS Total Return Bond Fund - Class R6      12,145,298        136,634,599  
              $ 939,582,638  
International Stock Funds - 19.9%                  
MFS Emerging Markets Equity Fund - Class R6      1,583,604      $ 46,969,701  
MFS International Growth Fund - Class R6      7,217,443        243,949,580  
MFS International Intrinsic Value Fund - Class R6      5,526,058        246,627,979  
MFS International New Discovery Fund - Class R6      3,232,586        102,117,400  
MFS Research International Fund - Class R6      19,360,036        342,285,426  
              $ 981,950,086  
Specialty Funds - 7.4%                  
MFS Commodity Strategy Fund - Class R6      41,690,352      $ 175,933,286  
MFS Global Real Estate Fund - Class R6      12,715,634        189,462,950  
              $ 365,396,236  
U.S. Stock Funds - 53.5%                  
MFS Growth Fund - Class R6      4,125,983      $ 560,267,252  
MFS Mid Cap Growth Fund - Class R6      20,242,097        475,689,267  
MFS Mid Cap Value Fund - Class R6      21,664,826        453,444,816  
MFS New Discovery Fund - Class R6      3,340,361        109,396,810  
MFS New Discovery Value Fund - Class R6      7,783,693        102,589,068  
MFS Research Fund - Class R6      9,116,172        404,211,077  
MFS Value Fund - Class R6      13,906,946        538,476,956  
              $ 2,644,075,246  
Money Market Funds - 0.2%                  
MFS Institutional Money Market Portfolio, 0.19% (v)      10,709,672      $ 10,710,743  
Total Investment Companies (Identified Cost, $3,151,381,313)             $ 4,941,714,949  
Other Assets, Less Liabilities - 0.0%               313,640  
Net Assets - 100.0%             $ 4,942,028,589  

See Portfolio Footnotes and Notes to Financial Statements

 

25


Table of Contents

Portfolio of Investments – continued

 

MFS AGGRESSIVE GROWTH ALLOCATION FUND

 

Investment Companies (h) - 100.0%                  
Issuer    Shares/Par      Value ($)  
International Stock Funds - 29.8%                  
MFS Emerging Markets Equity Fund - Class R6      1,159,334      $ 34,385,841  
MFS International Growth Fund - Class R6      4,340,178        146,698,029  
MFS International Intrinsic Value Fund - Class R6      3,383,587        151,009,489  
MFS International New Discovery Fund - Class R6      2,357,415        74,470,724  
MFS Research International Fund - Class R6      8,310,672        146,932,679  
              $ 553,496,762  
Specialty Funds - 9.3%                  
MFS Commodity Strategy Fund - Class R6      20,139,508      $ 84,988,725  
MFS Global Real Estate Fund - Class R6      5,907,570        88,022,789  
              $ 173,011,514  
U.S. Stock Funds - 60.8%                  
MFS Growth Fund - Class R6      1,842,808      $ 250,234,867  
MFS Mid Cap Growth Fund - Class R6      8,328,980        195,731,038  
MFS Mid Cap Value Fund - Class R6      8,738,527        182,897,369  
MFS New Discovery Fund - Class R6      1,523,594        49,897,687  
MFS New Discovery Value Fund - Class R6      3,477,030        45,827,260  
MFS Research Fund - Class R6      3,796,834        168,351,627  
MFS Value Fund - Class R6      6,085,042        235,612,831  
              $ 1,128,552,679  
Money Market Funds - 0.1%                  
MFS Institutional Money Market Portfolio, 0.19% (v)      2,388,351      $ 2,388,590  
Total Investment Companies (Identified Cost, $1,076,169,872)             $ 1,857,449,545  
Other Assets, Less Liabilities - (0.0)%               (810,901)  
Net Assets - 100.0%             $ 1,856,638,644  

Portfolio Footnotes:

 

(h)

An affiliated issuer, which may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of each fund’s investments in affiliated issuers were as follows:

 

     Affiliated Issuers  
MFS Conservative Allocation Fund   $ 3,018,886,787  
MFS Moderate Allocation Fund     5,450,784,403  
MFS Growth Allocation Fund     4,941,714,949  
MFS Aggressive Growth Allocation Fund     1,857,449,545  

 

(v)

Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end.

See Notes to Financial Statements

 

26


Table of Contents

Financial Statements

STATEMENTS OF ASSETS AND LIABILITIES

At 5/31/20

These statements represent each fund’s balance sheet, which details the assets and liabilities comprising the total value of each fund.

 

     MFS Conservative
Allocation Fund
     MFS Moderate
Allocation Fund
     MFS Growth
Allocation Fund
     MFS Aggressive Growth
Allocation Fund
 
Assets                                    

Investments in affiliated issuers, at value (identified cost, $2,327,607,272, $3,844,893,237, $3,151,381,313, and $1,076,169,872, respectively)

     $3,018,886,787        $5,450,784,403        $4,941,714,949        $1,857,449,545  

Receivables for

           

Investments sold

     1,867,125        2,287,032        2,353,162        1,049,970  

Fund shares sold

     5,004,494        6,285,097        4,840,673        2,623,750  

Receivable from investment adviser

                   136,791        61,079  

Other assets

     5,454        9,769        9,020        3,637  

Total assets

     $3,025,763,860        $5,459,366,301        $4,949,054,595        $1,861,187,981  
Liabilities                                    

Payable to custodian

     $1,197,314        $—        $—        $—  

Payables for

           

Investments purchased

     637,841        344,878               1,032,938  

Fund shares reacquired

     2,456,289        6,765,167        4,701,828        2,409,570  

Payable to affiliates

           

Administrative services fee

     193        193        193        193  

Shareholder servicing costs

     718,856        1,700,071        1,902,938        918,459  

Distribution and service fees

     114,824        218,398        186,311        63,562  

Program manager fee

     1,085        1,744        1,780        977  

Payable for independent Trustees’ compensation

     14        11        26        22  

Accrued expenses and other liabilities

     149,633        229,750        232,930        123,616  

Total liabilities

     $5,276,049        $9,260,212        $7,026,006        $4,549,337  

Net assets

     $3,020,487,811        $5,450,106,089        $4,942,028,589        $1,856,638,644  
Net assets consist of                                    

Paid-in capital

     $2,367,450,130        $3,849,872,362        $3,153,320,760        $1,075,499,165  

Total distributable earnings (loss)

     653,037,681        1,600,233,727        1,788,707,829        781,139,479  

Net assets

     $3,020,487,811        $5,450,106,089        $4,942,028,589        $1,856,638,644  

 

27


Table of Contents

Statements of Assets and Liabilities – continued

 

    MFS Conservative
Allocation Fund
    MFS Moderate
Allocation Fund
    MFS Growth
Allocation Fund
    MFS Aggressive Growth
Allocation Fund
 

Net assets

       

Class A

    $1,417,121,034       $3,173,202,348       $2,944,438,897       $928,554,778  

Class B

    63,964,930       149,969,150       126,961,621       41,015,574  

Class C

    542,273,790       874,126,833       694,541,183       234,144,153  

Class I

    400,868,912       310,815,164       294,213,363       178,490,836  

Class R1

    11,468,251       24,119,561       19,543,472       14,484,230  

Class R2

    56,260,164       124,724,623       123,458,677       55,452,894  

Class R3

    95,119,316       219,996,234       147,887,594       87,314,990  

Class R4

    234,300,738       252,825,400       264,075,532       137,679,849  

Class 529A

    153,384,498       248,005,778       261,098,767       154,653,624  

Class 529B

    4,301,082       7,258,184       8,702,257       2,924,457  

Class 529C

    41,425,096       65,062,814       57,107,226       21,923,259  

Total net assets

    $3,020,487,811       $5,450,106,089       $4,942,028,589       $1,856,638,644  

Shares of beneficial interest outstanding

       

Class A

    88,676,420       176,095,021       143,160,695       39,967,820  

Class B

    4,026,208       8,429,671       6,225,373       1,792,412  

Class C

    34,510,590       49,537,196       34,514,066       10,356,045  

Class I

    24,836,721       16,990,036       14,160,337       7,545,603  

Class R1

    745,592       1,399,481       992,758       650,956  

Class R2

    3,631,225       7,089,707       6,153,763       2,442,249  

Class R3

    6,005,947       12,314,676       7,258,635       3,790,374  

Class R4

    14,649,849       14,044,020       12,848,811       5,905,199  

Class 529A

    9,654,591       13,842,309       12,810,147       6,708,359  

Class 529B

    275,054       412,406       431,836       129,460  

Class 529C

    2,664,930       3,730,632       2,881,073       985,753  

Total shares of beneficial interest outstanding

    189,677,127       303,885,155       241,437,494       80,274,230  

Class A shares

       

Net asset value per share

       

(net assets / shares of beneficial interest outstanding)

    $15.98       $18.02       $20.57       $23.23  

Offering price per share (100 / 94.25 × net asset value per share)

    $16.95       $19.12       $21.82       $24.65  

Class B shares

       

Net asset value and offering price per share

       

(net assets / shares of beneficial interest outstanding)

    $15.89       $17.79       $20.39       $22.88  

Class C shares

       

Net asset value and offering price per share

       

(net assets / shares of beneficial interest outstanding)

    $15.71       $17.65       $20.12       $22.61  

Class I shares

       

Net asset value, offering price, and redemption price per share

       

(net assets / shares of beneficial interest outstanding)

    $16.14       $18.29       $20.78       $23.65  

Class R1 shares

       

Net asset value, offering price, and redemption price per share

       

(net assets / shares of beneficial interest outstanding)

    $15.38       $17.23       $19.69       $22.25  

Class R2 shares

       

Net asset value, offering price, and redemption price per share

       

(net assets / shares of beneficial interest outstanding)

    $15.49       $17.59       $20.06       $22.71  

 

28


Table of Contents

Statements of Assets and Liabilities – continued

 

    MFS Conservative
Allocation Fund
    MFS Moderate
Allocation Fund
     MFS Growth
Allocation Fund
    MFS Aggressive Growth
Allocation Fund
 

Class R3 shares

        

Net asset value, offering price, and redemption price per share

        

(net assets / shares of beneficial interest outstanding)

    $15.84       $17.86        $20.37       $23.04  

Class R4 shares

        

Net asset value, offering price, and redemption price per share

        

(net assets / shares of beneficial interest outstanding)

    $15.99       $18.00        $20.55       $23.32  

Class 529A shares

        

Net asset value and redemption price per share

        

(net assets / shares of beneficial interest outstanding)

    $15.89       $17.92        $20.38       $23.05  

Offering price per share (100 / 94.25 × net asset value per share)

    $16.86       $19.01        $21.62       $24.46  

Class 529B shares

        

Net asset value and offering price per share

        

(net assets / shares of beneficial interest outstanding)

    $15.64       $17.60        $20.15       $22.59  

Class 529C shares

        

Net asset value and offering price per share

        

(net assets / shares of beneficial interest outstanding)

    $15.54       $17.44        $19.82       $22.24  

On sales of $50,000 or more, the maximum offering price of Class A and Class 529A shares is reduced. A contingent deferred sales charge may be imposed on redemptions of Class A, Class B, Class C, Class 529B, and Class 529C shares.

See Notes to Financial Statements

 

29


Table of Contents

Financial Statements

STATEMENTS OF OPERATIONS

Year ended 5/31/20

These statements describe how much each fund earned in investment income and accrued in expenses. They also describe any gains or losses generated by each fund’s operations.

 

    MFS Conservative
Allocation Fund
    MFS Moderate
Allocation Fund
    MFS Growth
Allocation Fund
    MFS Aggressive Growth
Allocation Fund
 
Net investment income (loss)                                

Dividends from affiliated issuers

    $70,904,597       $118,181,022       $96,252,309       $29,185,416  

Expenses

       

Distribution and service fees

    $11,225,716       $21,900,140       $18,888,686       $6,490,027  

Shareholder servicing costs

    1,721,858       4,119,439       4,792,050       2,450,414  

Program manager fees

    99,858       160,316       164,285       91,153  

Administrative services fee

    17,500       17,500       17,500       17,500  

Independent Trustees’ compensation

    43,660       91,680       63,900       37,001  

Custodian fee

    63,382       106,135       88,550       37,066  

Shareholder communications

    133,374       275,621       312,002       124,618  

Audit and tax fees

    37,632       38,312       38,165       37,350  

Legal fees

    25,662       49,332       45,558       16,564  

Miscellaneous

    296,173       346,017       312,036       236,810  

Total expenses

    $13,664,815       $27,104,492       $24,722,732       $9,538,503  

Reduction of expenses by investment adviser and distributor

    (43,597     (115,268     (738,455     (564,690

Net expenses

    $13,621,218       $26,989,224       $23,984,277       $8,973,813  

Net investment income (loss)

    $57,283,379       $91,191,798       $72,268,032       $20,211,603  
Realized and unrealized gain (loss)                                

Realized gain (loss) (identified cost basis)

       

Investments in affiliated issuers

    $20,624,261       $84,168,121       $85,677,807       $25,936,693  

Capital gain distributions from affiliated issuers

    16,528,669       45,015,323       53,190,023       25,038,280  

Net realized gain (loss)

    $37,152,930       $129,183,444       $138,867,830       $50,974,973  

Change in unrealized appreciation or depreciation

       

Affiliated issuers

    $101,115,745       $153,967,564       $83,019,624       $35,666,386  

Net realized and unrealized gain (loss)

    $138,268,675       $283,151,008       $221,887,454       $86,641,359  

Change in net assets from operations

    $195,552,054       $374,342,806       $294,155,486       $106,852,962  

See Notes to Financial Statements

 

30


Table of Contents

Financial Statements

STATEMENTS OF CHANGES IN NET ASSETS

These statements describe the increases and/or decreases in net assets resulting from operations, any distributions, and any shareholder transactions.

 

Year ended 5/31/20    MFS Conservative
Allocation Fund
     MFS Moderate
Allocation Fund
     MFS Growth
Allocation Fund
     MFS Aggressive Growth
Allocation Fund
 
Change in net assets            
From operations                                    

Net investment income (loss)

     $57,283,379        $91,191,798        $72,268,032        $20,211,603  

Net realized gain (loss)

     37,152,930        129,183,444        138,867,830        50,974,973  

Net unrealized gain (loss)

     101,115,745        153,967,564        83,019,624        35,666,386  

Change in net assets from operations

     $195,552,054        $374,342,806        $294,155,486        $106,852,962  

Total distributions to shareholders

     $(100,086,864      $(247,398,416      $(238,946,554      $(88,421,193

Change in net assets from fund share transactions

     $83,099,843        $(76,719,905      $23,596,701        $62,233,205  

Total change in net assets

     $178,565,033        $50,224,485        $78,805,633        $80,664,974  
Net assets                                    

At beginning of period

     2,841,922,778        5,399,881,604        4,863,222,956        1,775,973,670  

At end of period

     $3,020,487,811        $5,450,106,089        $4,942,028,589        $1,856,638,644  
Year ended 5/31/19    MFS Conservative
Allocation Fund
     MFS Moderate
Allocation Fund
     MFS Growth
Allocation Fund
     MFS Aggressive Growth
Allocation Fund
 
Change in net assets            
From operations                                    

Net investment income (loss)

     $62,086,293        $106,914,290        $84,482,097        $23,833,805  

Net realized gain (loss)

     54,046,556        172,824,450        171,324,021        69,105,651  

Net unrealized gain (loss)

     2,181,106        (69,817,389      (96,003,027      (46,506,757

Change in net assets from operations

     $118,313,955        $209,921,351        $159,803,091        $46,432,699  

Total distributions to shareholders

     $(128,695,165      $(296,357,134      $(273,128,441      $(85,858,612

Change in net assets from fund share transactions

     $(91,192,337      $(203,578,431      $6,168,293        $24,723,734  

Total change in net assets

     $(101,573,547      $(290,014,214      $(107,157,057      $(14,702,179
Net assets                                    

At beginning of period

     2,943,496,325        5,689,895,818        4,970,380,013        1,790,675,849  

At end of period

     $2,841,922,778        $5,399,881,604        $4,863,222,956        $1,775,973,670  

See Notes to Financial Statements

 

31


Table of Contents

Financial Statements

FINANCIAL HIGHLIGHTS

MFS CONSERVATIVE ALLOCATION FUND

The financial highlights table is intended to help you understand the fund’s financial performance for the past 5 years. Certain information reflects financial results for a single fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.

 

     Year ended  
Class A    5/31/20      5/31/19      5/31/18      5/31/17     5/31/16  

Net asset value, beginning of period

     $15.45        $15.50        $15.43        $14.69       $15.05  
Income (loss) from investment operations                                            

Net investment income (loss) (d)(l)

     $0.33        $0.35        $0.32        $0.26 (c)      $0.21  

Net realized and unrealized gain (loss)

     0.75        0.31        0.43        0.85       (0.18

Total from investment operations

     $1.08        $0.66        $0.75        $1.11       $0.03  
Less distributions declared to shareholders                                            

From net investment income

     $(0.34      $(0.35      $(0.33      $(0.26     $(0.23

From net realized gain

     (0.21      (0.36      (0.35      (0.11     (0.16

Total distributions declared to shareholders

     $(0.55      $(0.71      $(0.68      $(0.37     $(0.39

Net asset value, end of period (x)

     $15.98        $15.45        $15.50        $15.43       $14.69  

Total return (%) (r)(s)(t)(x)

     7.07        4.60        4.91        7.71 (c)      0.27  
Ratios (%) (to average net assets) and Supplemental data:                                            

Expenses before expense reductions (f)(h)

     0.33        0.33        0.32        0.33 (c)      0.33  

Expenses after expense reductions (f)(h)

     0.33        0.33        0.32        0.33 (c)      0.33  

Net investment income (loss) (l)

     2.05        2.30        2.05        1.72 (c)      1.45  

Portfolio turnover

     12        4        6        3       5  

Net assets at end of period (000 omitted)

     $1,417,121        $1,294,553        $1,321,127        $1,330,751       $1,435,774  
     Year ended  
Class B    5/31/20      5/31/19      5/31/18      5/31/17     5/31/16  

Net asset value, beginning of period

     $15.35        $15.40        $15.33        $14.60       $14.95  
Income (loss) from investment operations                                            

Net investment income (loss) (d)(l)

     $0.21        $0.24        $0.20        $0.14 (c)      $0.10  

Net realized and unrealized gain (loss)

     0.76        0.30        0.43        0.85       (0.17

Total from investment operations

     $0.97        $0.54        $0.63        $0.99       $(0.07
Less distributions declared to shareholders                                            

From net investment income

     $(0.22      $(0.23      $(0.21      $(0.15     $(0.12

From net realized gain

     (0.21      (0.36      (0.35      (0.11     (0.16

Total distributions declared to shareholders

     $(0.43      $(0.59      $(0.56      $(0.26     $(0.28

Net asset value, end of period (x)

     $15.89        $15.35        $15.40        $15.33       $14.60  

Total return (%) (r)(s)(t)(x)

     6.31        3.81        4.13        6.87 (c)      (0.43
Ratios (%) (to average net assets) and Supplemental data:                                            

Expenses before expense reductions (f)(h)

     1.08        1.08        1.07        1.08 (c)      1.08  

Expenses after expense reductions (f)(h)

     1.08        1.08        1.07        1.08 (c)      1.08  

Net investment income (loss) (l)

     1.32        1.56        1.31        0.97 (c)      0.71  

Portfolio turnover

     12        4        6        3       5  

Net assets at end of period (000 omitted)

     $63,965        $93,839        $116,669        $137,431       $150,726  

See Notes to Financial Statements

 

32


Table of Contents

Financial Highlights – continued

 

MFS CONSERVATIVE ALLOCATION FUND – continued

 

     Year ended  
Class C    5/31/20      5/31/19      5/31/18      5/31/17     5/31/16  

Net asset value, beginning of period

     $15.20        $15.25        $15.20        $14.47       $14.83  
Income (loss) from investment operations                                            

Net investment income (loss) (d)(l)

     $0.20        $0.23        $0.20        $0.14 (c)      $0.10  

Net realized and unrealized gain (loss)

     0.75        0.32        0.41        0.85       (0.18

Total from investment operations

     $0.95        $0.55        $0.61        $0.99       $(0.08
Less distributions declared to shareholders                                            

From net investment income

     $(0.23      $(0.24      $(0.21      $(0.15     $(0.12

From net realized gain

     (0.21      (0.36      (0.35      (0.11     (0.16

Total distributions declared to shareholders

     $(0.44      $(0.60      $(0.56      $(0.26     $(0.28

Net asset value, end of period (x)

     $15.71        $15.20        $15.25        $15.20       $14.47  

Total return (%) (r)(s)(t)(x)

     6.24        3.88        4.05        6.94 (c)      (0.48
Ratios (%) (to average net assets) and Supplemental data:                                            

Expenses before expense reductions (f)(h)

     1.08        1.08        1.07        1.08 (c)      1.08  

Expenses after expense reductions (f)(h)

     1.08        1.08        1.07        1.08 (c)      1.08  

Net investment income (loss) (l)

     1.30        1.55        1.31        0.97 (c)      0.71  

Portfolio turnover

     12        4        6        3       5  

Net assets at end of period (000 omitted)

     $542,274        $535,354        $571,300        $670,914       $727,084  
     Year ended  
Class I    5/31/20      5/31/19      5/31/18      5/31/17     5/31/16  

Net asset value, beginning of period

     $15.60        $15.64        $15.57        $14.82       $15.17  
Income (loss) from investment operations                                            

Net investment income (loss) (d)(l)

     $0.37        $0.40        $0.36        $0.29 (c)      $0.24  

Net realized and unrealized gain (loss)

     0.76        0.31        0.43        0.87       (0.17

Total from investment operations

     $1.13        $0.71        $0.79        $1.16       $0.07  
Less distributions declared to shareholders                                            

From net investment income

     $(0.38      $(0.39      $(0.37      $(0.30     $(0.26

From net realized gain

     (0.21      (0.36      (0.35      (0.11     (0.16

Total distributions declared to shareholders

     $(0.59      $(0.75      $(0.72      $(0.41     $(0.42

Net asset value, end of period (x)

     $16.14        $15.60        $15.64        $15.57       $14.82  

Total return (%) (r)(s)(t)(x)

     7.34        4.89        5.13        7.99 (c)      0.58  
Ratios (%) (to average net assets) and Supplemental data:                                            

Expenses before expense reductions (f)(h)

     0.08        0.08        0.07        0.08 (c)      0.08  

Expenses after expense reductions (f)(h)

     N/A        N/A        N/A        N/A       N/A  

Net investment income (loss) (l)

     2.30        2.58        2.32        1.92 (c)      1.66  

Portfolio turnover

     12        4        6        3       5  

Net assets at end of period (000 omitted)

     $400,869        $367,586        $358,866        $271,960       $203,031  

See Notes to Financial Statements

 

33


Table of Contents

Financial Highlights – continued

 

MFS CONSERVATIVE ALLOCATION FUND – continued

 

     Year ended  
Class R1    5/31/20      5/31/19      5/31/18      5/31/17     5/31/16  

Net asset value, beginning of period

     $14.89        $14.96        $14.92        $14.21       $14.56  
Income (loss) from investment operations                                            

Net investment income (loss) (d)(l)

     $0.20        $0.23        $0.20        $0.14 (c)      $0.10  

Net realized and unrealized gain (loss)

     0.73        0.30        0.41        0.83       (0.17

Total from investment operations

     $0.93        $0.53        $0.61        $0.97       $(0.07
Less distributions declared to shareholders                                            

From net investment income

     $(0.23      $(0.24      $(0.22      $(0.15     $(0.12

From net realized gain

     (0.21      (0.36      (0.35      (0.11     (0.16

Total distributions declared to shareholders

     $(0.44      $(0.60      $(0.57      $(0.26     $(0.28

Net asset value, end of period (x)

     $15.38        $14.89        $14.96        $14.92       $14.21  

Total return (%) (r)(s)(t)(x)

     6.27        3.83        4.08        6.93 (c)      (0.42
Ratios (%) (to average net assets) and Supplemental data:                                            

Expenses before expense reductions (f)(h)

     1.08        1.08        1.07        1.08 (c)      1.08  

Expenses after expense reductions (f)(h)

     N/A        N/A        N/A        N/A       N/A  

Net investment income (loss) (l)

     1.31        1.53        1.31        0.97 (c)      0.71  

Portfolio turnover

     12        4        6        3       5  

Net assets at end of period (000 omitted)

     $11,468        $11,465        $12,794        $14,641       $18,875  
     Year ended  
Class R2    5/31/20      5/31/19      5/31/18      5/31/17     5/31/16  

Net asset value, beginning of period

     $14.99        $15.06        $15.02        $14.31       $14.66  
Income (loss) from investment operations                                            

Net investment income (loss) (d)(l)

     $0.28        $0.31        $0.28        $0.22 (c)      $0.17  

Net realized and unrealized gain (loss)

     0.74        0.30        0.40        0.82       (0.17

Total from investment operations

     $1.02        $0.61        $0.68        $1.04       $0.00(w
Less distributions declared to shareholders                                            

From net investment income

     $(0.31      $(0.32      $(0.29      $(0.22     $(0.19

From net realized gain

     (0.21      (0.36      (0.35      (0.11     (0.16

Total distributions declared to shareholders

     $(0.52      $(0.68      $(0.64      $(0.33     $(0.35

Net asset value, end of period (x)

     $15.49        $14.99        $15.06        $15.02       $14.31  

Total return (%) (r)(s)(t)(x)

     6.81        4.34        4.58        7.44 (c)      0.09  
Ratios (%) (to average net assets) and Supplemental data:                                            

Expenses before expense reductions (f)(h)

     0.58        0.58        0.57        0.58 (c)      0.58  

Expenses after expense reductions (f)(h)

     0.58        0.58        0.57        0.58 (c)      0.58  

Net investment income (loss) (l)

     1.81        2.06        1.81        1.48 (c)      1.23  

Portfolio turnover

     12        4        6        3       5  

Net assets at end of period (000 omitted)

     $56,260        $64,220        $72,083        $85,187       $97,053  

See Notes to Financial Statements

 

34


Table of Contents

Financial Highlights – continued

 

MFS CONSERVATIVE ALLOCATION FUND – continued

 

     Year ended  
Class R3    5/31/20      5/31/19      5/31/18      5/31/17     5/31/16  

Net asset value, beginning of period

     $15.31        $15.37        $15.31        $14.58       $14.93  
Income (loss) from investment operations                                            

Net investment income (loss) (d)(l)

     $0.32        $0.35        $0.32        $0.25 (c)      $0.21  

Net realized and unrealized gain (loss)

     0.76        0.30        0.42        0.85       (0.17

Total from investment operations

     $1.08        $0.65        $0.74        $1.10       $0.04  
Less distributions declared to shareholders                                            

From net investment income

     $(0.34      $(0.35      $(0.33      $(0.26     $(0.23

From net realized gain

     (0.21      (0.36      (0.35      (0.11     (0.16

Total distributions declared to shareholders

     $(0.55      $(0.71      $(0.68      $(0.37     $(0.39

Net asset value, end of period (x)

     $15.84        $15.31        $15.37        $15.31       $14.58  

Total return (%) (r)(s)(t)(x)

     7.14        4.57        4.88        7.70 (c)      0.34  
Ratios (%) (to average net assets) and Supplemental data:                                            

Expenses before expense reductions (f)(h)

     0.33        0.33        0.32        0.33 (c)      0.33  

Expenses after expense reductions (f)(h)

     N/A        N/A        N/A        0.33 (c)      0.33  

Net investment income (loss) (l)

     2.06        2.33        2.05        1.71 (c)      1.46  

Portfolio turnover

     12        4        6        3       5  

Net assets at end of period (000 omitted)

     $95,119        $101,884        $112,696        $146,688       $172,074  
     Year ended  
Class R4    5/31/20      5/31/19      5/31/18      5/31/17     5/31/16  

Net asset value, beginning of period

     $15.46        $15.51        $15.44        $14.70       $15.06  
Income (loss) from investment operations                                            

Net investment income (loss) (d)(l)

     $0.36        $0.41        $0.37        $0.29 (c)      $0.25  

Net realized and unrealized gain (loss)

     0.76        0.29        0.42        0.86       (0.19

Total from investment operations

     $1.12        $0.70        $0.79        $1.15       $0.06  
Less distributions declared to shareholders                                            

From net investment income

     $(0.38      $(0.39      $(0.37      $(0.30     $(0.26

From net realized gain

     (0.21      (0.36      (0.35      (0.11     (0.16

Total distributions declared to shareholders

     $(0.59      $(0.75      $(0.72      $(0.41     $(0.42

Net asset value, end of period (x)

     $15.99        $15.46        $15.51        $15.44       $14.70  

Total return (%) (r)(s)(t)(x)

     7.34        4.86        5.17        7.98 (c)      0.52  
Ratios (%) (to average net assets) and Supplemental data:                                            

Expenses before expense reductions (f)(h)

     0.08        0.08        0.07        0.08 (c)      0.08  

Expenses after expense reductions (f)(h)

     N/A        N/A        N/A        N/A       N/A  

Net investment income (loss) (l)

     2.29        2.65        2.36        1.95 (c)      1.73  

Portfolio turnover

     12        4        6        3       5  

Net assets at end of period (000 omitted)

     $234,301        $179,833        $196,658        $135,695       $109,923  

See Notes to Financial Statements

 

35


Table of Contents

Financial Highlights – continued

 

MFS CONSERVATIVE ALLOCATION FUND – continued

 

     Year ended  
Class 529A    5/31/20      5/31/19      5/31/18      5/31/17     5/31/16  

Net asset value, beginning of period

     $15.36        $15.41        $15.35        $14.62       $14.97  
Income (loss) from investment operations                                            

Net investment income (loss) (d)(l)

     $0.32        $0.34        $0.31        $0.25 (c)      $0.20  

Net realized and unrealized gain (loss)

     0.76        0.32        0.43        0.84       (0.17

Total from investment operations

     $1.08        $0.66        $0.74        $1.09       $0.03  
Less distributions declared to shareholders                                            

From net investment income

     $(0.34      $(0.35      $(0.33      $(0.25     $(0.22

From net realized gain

     (0.21      (0.36      (0.35      (0.11     (0.16

Total distributions declared to shareholders

     $(0.55      $(0.71      $(0.68      $(0.36     $(0.38

Net asset value, end of period (x)

     $15.89        $15.36        $15.41        $15.35       $14.62  

Total return (%) (r)(s)(t)(x)

     7.08        4.60        4.83        7.65 (c)      0.30  
Ratios (%) (to average net assets) and Supplemental data:                                            

Expenses before expense reductions (f)(h)

     0.38        0.38        0.40        0.43 (c)      0.43  

Expenses after expense reductions (f)(h)

     0.36        0.37        0.36        0.37 (c)      0.37  

Net investment income (loss) (l)

     2.02        2.26        2.03        1.66 (c)      1.41  

Portfolio turnover

     12        4        6        3       5  

Net assets at end of period (000 omitted)

     $153,384        $143,581        $132,290        $109,297       $89,761  
     Year ended  
Class 529B    5/31/20      5/31/19      5/31/18      5/31/17     5/31/16  

Net asset value, beginning of period

     $15.10        $15.16        $15.11        $14.39       $14.74  
Income (loss) from investment operations                                            

Net investment income (loss) (d)(l)

     $0.22        $0.22        $0.19        $0.13 (c)      $0.10  

Net realized and unrealized gain (loss)

     0.75        0.31        0.42        0.84       (0.18

Total from investment operations

     $0.97        $0.53        $0.61        $0.97       $(0.08
Less distributions declared to shareholders                                            

From net investment income

     $(0.22      $(0.23      $(0.21      $(0.14     $(0.11

From net realized gain

     (0.21      (0.36      (0.35      (0.11     (0.16

Total distributions declared to shareholders

     $(0.43      $(0.59      $(0.56      $(0.25     $(0.27

Net asset value, end of period (x)

     $15.64        $15.10        $15.16        $15.11       $14.39  

Total return (%) (r)(s)(t)(x)

     6.46        3.79        4.04        6.87 (c)      (0.48
Ratios (%) (to average net assets) and Supplemental data:                                            

Expenses before expense reductions (f)(h)

     0.97        1.13        1.15        1.18 (c)      1.18  

Expenses after expense reductions (f)(h)

     0.97        1.12        1.11        1.12 (c)      1.13  

Net investment income (loss) (l)

     1.43        1.49        1.27        0.90 (c)      0.68  

Portfolio turnover

     12        4        6        3       5  

Net assets at end of period (000 omitted)

     $4,301        $6,256        $7,414        $6,852       $6,349  

See Notes to Financial Statements

 

36


Table of Contents

Financial Highlights – continued

 

MFS CONSERVATIVE ALLOCATION FUND – continued

 

     Year ended  
Class 529C    5/31/20      5/31/19      5/31/18      5/31/17     5/31/16  

Net asset value, beginning of period

     $15.04        $15.10        $15.06        $14.35       $14.70  
Income (loss) from investment operations                                            

Net investment income (loss) (d)(l)

     $0.20        $0.23        $0.19        $0.13 (c)      $0.09  

Net realized and unrealized gain (loss)

     0.73        0.30        0.41        0.84       (0.17

Total from investment operations

     $0.93        $0.53        $0.60        $0.97       $(0.08
Less distributions declared to shareholders                                            

From net investment income

     $(0.22      $(0.23      $(0.21      $(0.15     $(0.11

From net realized gain

     (0.21      (0.36      (0.35      (0.11     (0.16

Total distributions declared to shareholders

     $(0.43      $(0.59      $(0.56      $(0.26     $(0.27

Net asset value, end of period (x)

     $15.54        $15.04        $15.10        $15.06       $14.35  

Total return (%) (r)(s)(t)(x)

     6.20        3.82        4.00        6.84