ONE WORLD. Diversify internationally for greater opportunity. MFS Investment Management

Transcription

1 MFS Investment Management ONE WORLD Diversify internationally for greater opportunity This brochure provides year-end performance. When data for subsequent quarters are available, the brochure must be accompanied by a performance supplement insert.

2 WIDESPREAD INTERNATIONAL DIVERSIFICATION IS IMPORTANT TODAY Can you hear me now? Cell phone use continues to rise, and foreign makers are profiting. International blend: Your daily brew may be from a Swiss food and beverage giant. 78% of the total number of companies in the world are listed outside the United States today. 1 If you are like 61% of mutual fund investors surveyed who do not own a global or international fund, you could be limiting your investment potential by not diversifying your portfolio across international markets. 2 Plugged in: Many Americans TVs are produced by major Japanese electronics firms. What percentage of your assets should be invested outside the United States? Your financial advisor can help you make a decision that works for you. 1 Source: FactSet, Worldscope, January, Source: ICI Annual Mutual Fund Shareholder Tracking Survey, 2017 Diversification does not guarantee a profit or protect against a loss. Investments in foreign markets can involve greater risk and volatility than U.S. investments because of adverse market, currency, economic, industry, political, regulatory, geopolitical, or other conditions. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE

3 THE CASE FOR GOING INTERNATIONAL IS A STRONG ONE Are you missing the growth potential of more than half of the world s stock opportunities? 1 Not only are there more investing opportunities outside the United States, but many of the world s most profitable companies are based outside our borders. In fact, 14 of the 25 largest corporations worldwide are international companies. 3 Many of their names and products are probably familiar to you, too. Many best-known brands are headquartered overseas Non-U.S. industry leaders 3 Names you know and rely on 4, 5 9 of the 10 largest electronics companies 7 of the 10 largest telecommunications companies 7 of the 10 largest pharmaceutical companies 6 of the 10 largest banks Samsung (South Korea) SoftBank (Japan) Novartis AG (Switzerland) BNP Paribas (France) Your consumer dollars are already going to many overseas firms. Doesn t it make sense to invest in their potential growth as well? You may be surprised to learn that many international countries outpaced the United States in average annual returns for the past 20 years. 6 To the right is a sample. Foreign markets have often outperformed the U.S. market Average annual returns for the 20 years ended 12/31/ % 8.38% 8.60% 8.73% 9.78% 11.05% United States Canada Sweden Finland Australia Denmark Diversifying internationally may help you achieve better returns during years in which U.S. stocks are flat or down. 3 Source: fortune.com, 2017 Global 500, July Illustrations should not be construed as a recommendation of an individual security. The third-party registered marks noted are the property of their respective owners, which may be U.S. subsidiaries of foreign corporations. 5 As of 12/31/17, the percentages of the brands held in MFS International Diversification SM Fund and its underlying funds were as follows: Samsung (International Diversification, 0.74%; MFS s Equity Fund, 5.38%; MFS Research International Fund, 0.46%, International 0.19%); SoftBank (International Diversification, 0.56%; Research International, 1.03%; International, 0.99%); BNP Paribas (International Diversification 0.48%; Research International, 1.56%); and Novartis AG (International Diversification, 0.57%; International, 2.22%). Please note that an investment in the fund does not constitute ownership of individual securities that make up the fund. The portfolio is actively managed, and current holdings may be different. Please see mfs.com for a current list of top-10 holdings for each of the underlying funds. characteristics are based on equivalent exposure, which measures how a portfolio s value would change due to price changes in an asset held either directly or, in the case of a derivative contract, indirectly. The market value of the holding may differ. 6 Source: SPAR, FactSet Research Systems Inc. Returns are based on the country s respective MSCI indices (gross). It is not possible to invest directly in an index. Past performance is no guarantee of future results of these world markets or of any MFS portfolio. page 1

4 WIDESPREAD INTERNATIONAL DIVERSIFICATION IS IMPORTANT TODAY Bank on it: The stock price of a mid-sized bank in South America is viewed as a value. Got soy milk? A small company in Japan is capitalizing on the soy milk health trend. FDA approved: A new drug is boosting revenue at a large Swiss pharmaceutical firm. You and your financial advisor have already created a diversified investment portfolio across the major U.S. stock market segments of small cap, mid cap, large cap, and growth and value. But are you using the same disciplined strategy when it comes to the international component of your portfolio? If not, you could be missing out on a world of opportunity. Take the guesswork out of investing The performance ranking of different international market segments shifted from one year to the next during the past 10 years, as the chart to the right shows. Therefore, if you keep your portfolio well diversified, you will not have to worry about being in the right place at the right time. Of course, past performance is no guarantee of future results. Also, diversification does not guarantee a profit or protect against loss. For assistance in determining your financial situation, please consult your financial advisor. page 2

5 Diversify for greater growth potential and less volatility It may make sense to follow the same disciplined diversification strategy overseas as you and your financial advisor have taken with your U.S. investments. As the chart depicts, the diversified portfolio that was rebalanced quarterly offered competitive historical performance relative to most of the other market segments listed below during the 10 years ended 12/31/17. ANNUALIZED STANDARD DEVIATION 7 10 YEARS ENDED 12/31/ Performance of the international market segments Average Source: SPAR, FactSet Research Systems Inc % 43.43% 43.57% 44.89% 47.67% 53.46% 84.63% 45.07% 41.49% 38.21% 36.09% 33.96% 21.96% 20.05% 12.32% 10.41% 10.21% 10.02% 11.72% 11.76% 11.81% 12.96% 14.49% 20.70% 18.82% 18.55% 17.65% 17.53% 17.22% 16.79% 26.06% 23.08% 20.59% 18.78% 18.07% 1.27% 0.61% 3.04% 3.42% 3.42% 3.93% 4.83% 5.92% 0.41% 2.55% 2.85% 4.69% 13.52% 11.30% 7.36% 4.45% 3.78% 3.43% 0.20% 35.62% 32.37% 27.33% 27.00% 25.72% 24.34% 5.22% 2.88% 2.61% 2.57% 2.55% 2.34% WORST BEST Spreading your portfolio holdings across the international equity markets may help you benefit from strong performance in one market and help minimize the impact of downturns in another. The historical performance of each index shown is provided to illustrate market trends; it is not intended to represent the performance of any MFS investment product. Index performance does not take into account any investment-related fees and expenses. It is not possible to invest directly in an index. Small-cap, mid-cap, and emerging market companies are susceptible to greater risk than is customarily associated with investing in more-established companies. 7 Standard deviation reflects a portfolio s total return volatility, which is based on a minimum of 36 monthly returns. The larger the portfolio s standard deviation, the greater the portfolio s volatility. 8 S&P Developed Ex U.S. LargeMid Index is an unmanaged index and measures large-cap growth stocks in equity markets around the world, excluding the United States. 9 S&P Developed Ex U.S. LargeMid Index is an unmanaged index and measures large-cap stocks in equity markets around the world, excluding the United States. 10 Hypothetical portfolio allocated in the five market segments as follows: 25% in Large, 25% in, 30% in, 10% in, and 10% in. assets were rebalanced at the end of every quarter so that the same percentage allocations among the five segments were kept. 11 S&P Developed Ex U.S. LargeMid Index is an unmanaged index and measures large-cap value stocks in equity markets around the world, excluding the United States. 12 S&P Developed Ex U.S. Small Index is an unmanaged index and measures small-/mid-cap stocks in equity markets around the world, excluding the United States. 13 S&P s Broad Index is an unmanaged index and measures emerging market stocks. Past performance is no guarantee of future results of these world markets or of any MFS portfolio. page 3

6 DIVERSIFY YOUR PORTFOLIO WITH MFS INTERNATIONAL PRODUCTS Give your portfolio a global investing advantage with MFS international products. MFS offers a wide array of investment portfolios that allows you to diversify your assets worldwide across market capitalizations, growth and value styles, sectors, and countries. Rely on your financial advisor s insight Talk with your financial advisor about the right blend of MFS international investments for you. He or she is familiar with your specific financial needs, goals, and comfort level for risk and can help you tailor a diversified portfolio that is appropriate for you. Put MFS global investment experience and expertise to work in your long-term portfolio. Global network: The MFS global equity team members in Boston discuss trends with our research analysts in Hong Kong, London, Mexico City, São Paulo, Singapore, Sydney, Tokyo, and Toronto. page 4

7 Morningstar Style Box TM as of 12/31/17 MFS 14, 15, 16 Research International Fund Seeks capital appreciation large mid small analyst-run, core international stock fund broadly diversified by sector, invests across regions, industries, styles, and market capitalizations core, multi-capitalization investment strategy allows flexibility to search for highest conviction ideas MFS 14, 15, 16, 18, 20 International Fund Seeks capital appreciation large mid small focuses on international companies believed to be undervalued compared to their intrinsic value seeks an advantage by evaluating the long-term quality, sustainability, improvement potential and intrinsic value of businesses MFS 14, 15, 16, 17, 21 International Fund Seeks capital appreciation large mid small multi-cap approach focused on well-run non-u.s. businesses believed poised for accelerating growth looks for strong fundamentals, superior management, and sustainable competitive advantage holdings offering above-average growth potential MFS 14, 15, 16, 17, 19, 22 International New Discovery Fund Seeks capital appreciation large mid small an international growth fund focused on small and mid-cap international stocks with valuations in line with fundamental strengths and growth prospects emphasis on high-quality companies drives this fund to seek companies with durable competitive advantages and strong management teams seeks companies that can compound growth and intrinsic value at above-average rates for many years ahead and aims for low turnover which supports a long-term investing horizon MFS 14, 15, 16, 17 s Equity Fund Seeks capital appreciation large mid small globally diversified among emerging markets, focused on earnings prospects and valuations while considering rising revenues, expanding margins, and increasing cash flows MFS locations within the s areas allow for discovery of local opportunities such as on-site visits to corporate headquarters, manufacturing plants, clients, suppliers, etc. discussions with s Debt team surrounding factors that aid investment choices in individual securities Important risk considerations: 14 The fund may not achieve its objective and/or you could lose money on your investment in the fund. 15 Stock markets and investments in individual stocks are volatile and can decline significantly in response to issuer, market, economic, industry, political, regulatory, geopolitical, and other conditions. 16 Investments in foreign markets can involve greater risk and volatility than U.S. investments because of adverse market, currency, economic, industry, political, regulatory, geopolitical, or other conditions. 17 markets can have less market structure, depth, and regulatory, custodial or operational oversight and greater political, social, and economic instability than developed markets. 18 Investments in derivatives can be used to take both long and short positions, be highly volatile, involve leverage (which can magnify losses), and involve risks in addition to the risks of the underlying indicator(s) on which the derivative is based, such as counterparty and liquidity risk. 19 Investments in small-cap companies can be more volatile than investments in larger companies. 20 Investments in value companies can continue to be undervalued for long periods of time, not realize their expected value, and be more volatile than the stock market in general. 21 Investments in growth companies can be more sensitive to the company s earnings and more volatile than the stock market in general. 22 The fund s performance may be closely tied to the performance of companies in a limited number of sectors and could be more volatile than the performance of less focused funds. 23 Because the portfolio may invest a substantial amount of its assets in issuers located in a single country or in a limited number of countries, it may be more volatile than a portfolio that is more geographically diversified. 24 MFS strategy of investing in underlying funds exposes the fund to the risks of the underlying funds. Each underlying fund pursues its own objective and strategies and may not achieve its objective. Please see the prospectus for further information on these and other risk considerations. Past performance is no guarantee of future results of these world markets or of any MFS portfolio. MFS International Diversification SM 14, 15, 16, 23, 24 Fund Seeks capital appreciation Built-in international diversification If you prefer to get widespread international diversification from one fund, consider MFS International Diversification Fund. It offers a time efficient way to stay well diversified internationally. This five-in-one strategy allows you to allocate internationally diversify across market capitalizations, styles, sectors, and countries rebalance periodically Across-the-board coverage The fund was carefully structured from a percentage of each of the five underlying funds listed to the left. 30% MFS Research International Fund 25% MFS International Fund 25% MFS International Fund 10% MFS International New Discovery Fund 10% MFS s Equity Fund Notice how you get diversification across the Morningstar Style Box TM. 11.3% 25.0% 39.1% large 1.9% 5.3% 9.3% mid 0.4% 0.7% 0.6% small The Morningstar Style Box breakdown gives an overview of a portfolio s stock coverage in each of the nine boxes of the Morningstar Style Box. The box above represents a style breakdown of MFS International Diversification Fund as of November 30, 2017, the latest data available. The portfolio s exposure to certain security types or risks may differ from the target weightings of the underlying funds Morningstar, Inc. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar; (2) may not be copied; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers is responsible for any damages or losses arising from any use of this information. The Morningstar Style Box TM reveals a fund s investment strategy by showing its investment style and market capitalization based on the fund s portfolio holdings. page 5

8 OUR DISCIPLINED PROCESS HAS YIELDED COMPETITIVE RELATIVE RESULTS A historical balance of risk and reward Four of the six MFS international funds shown outperformed the MSCI EAFE (Europe, Australasia, Far East) Index with less risk for the 10 years ended 12/31/17. Performance data shown represent past performance and are no guarantee of future results. Investment return and principal value fluctuate so your shares, when sold, may be worth more or less than the original cost; current performance may be lower or higher than quoted. For most recent month-end performance, please visit mfs.com. Results would have been less favorable had the sales charge of 5.75% been included. 7.50% 5.00% 2.50% % Risk/return profiles, Class A, for the 10 years ended 12/31/17 AVERAGE ANNUAL TOTAL RETURNS, NOT INCLUDING SALES CHARGE LOWER RISK MFS International Fund Risk 15.50/Return 6.65% MFS International Fund Risk 17.85/Return 3.92% MFS International Diversification Fund Risk 17.44/Return 3.75% MSCI EAFE Index (net div) Risk 18.50/Return 1.94% STANDARD DEVIATION MFS International New Discovery Fund Risk 17.86/Return 5.89% MFS Research International Fund Risk 18.58/Return 1.74% MFS s Equity Fund Risk 21.70/Return 0.14% HIGHER RISK Fund and other information, Class A, as of 12/31/17 Average annual returns, without sales charge (%) Average annual returns, with sales charge (%) Standard deviation Expense ratios (%) Inception 1 yr. 3 yr. 5 yr. 10 yr./ Life 1 yr. 3 yr. 5 yr. 10 yr./ Life 10 yr. Gross Net Waiver end date MFS International Fund (max. 5.75%) * 10/24/ MSCI EAFE (Europe, Australasia, Far East) Index (net div) MFS Research International Fund (max. 5.75%) 01/02/ MSCI EAFE (Europe, Australasia, Far East) Index (net div) MFS International Fund (max. 5.75%) 10/24/ MSCI All Country World (ex-us) Index (net div) MFS International New Discovery Fund (max. 5.75%) 10/09/ MSCI All Country World (ex-us) Small Mid Index (net div) MFS s Equity Fund (max. 5.75%) 10/24/ MSCI s Index (net div) MFS International Diversification Fund (max. 5.75%) 09/30/ /30/18 MSCI All Country World (ex-us) Index (net div) The fund performance shown is attributable in part to unusual market conditions. These conditions may not be repeated in the future. 25 MSCI EAFE Index (net) measures non-u.s. value stocks. 26 MSCI EAFE Index measures the non-u.s. stock market. 27 MSCI All Country World (ex-us) Index (net) is a market capitalization index designed to measure equity performance in the developed and emerging markets, excluding the U.S. 28 MSCI All Country World (ex-us) Small Mid Index (net) is a free float weighted index that is designed to measure equity market performance of small and mid cap companies across global developed and emerging market countries, excluding the United States. 29 MSCI s Index (net) measures emerging market stocks. 30 MSCI All Country World (ex-us) Index (net) measures developed and emerging market stock markets. * Effective at the close of business on May 29, 2015 (the Closing Date ), this fund will be closed to new investors subject to certain exceptions. Please see the prospectus for additional information. Standard deviation may be more or less favorable for other time periods. Other share classes are available for which performance and expenses will differ and ratings may vary. Performance results reflect any applicable expense subsidies and waivers in effect during the periods shown. Without such subsidies and waivers the fund s performance results would be less favorable. All results assume the reinvestment of dividends and capital gains. The performance is as of the date shown; it may not include the fund s entire investment portfolio and is subject to change. Gross Expense Ratio is the fund s total operating expense ratio from the fund s most recent prospectus. Net Expense Ratio reflects the reduction of expenses from fee waivers, reimbursements, and the exclusion of interest and fees. Elimination of these reductions will result in higher expenses and lower performance. These reductions will continue until at least date noted under the Waiver end date column. Standard deviation is an indicator of the portfolio s total return volatility, which is based on a minimum of 36 monthly returns. The larger the portfolio s standard deviation, the greater the portfolio s volatility. Index performance does not reflect any investment-related fees and expenses. It is not possible to invest directly in an index. All funds mentioned may not be available for sale by your investment professional s firm. page 6

9 MFS IS COMMITTED TO GLOBAL INVESTING Key facts More than 50% of MFS equity research budget is spent on uncovering international investing opportunities. This shows MFS commitment to global investing. MFS has followed a disciplined investment process since 1924, the year it established the first mutual fund in America. The historically competitive long-term performance of MFS international and global products speaks to the strength of MFS research capabilities. Far reaching Our global research platform includes 272 investment management professionals working in offices in Boston, Hong Kong, London, Mexico City, São Paulo, Singapore, Sydney, Tokyo, and Toronto. Well established We have more than $238 billion in international/global/ regional equity portfolio assets under management ($105b international/$96b global/$38b regional) as of 12/31/17. Committed More than one-half of MFS equity research budget is spent annually on uncovering international investing opportunities. Disciplined We focus on companies, not countries. MFS follows a disciplined, bottom-up security-selection process to uncover what we believe to be the best foreign companies for longterm results. It is complemented with a top-down analysis of risk from our quantitative teams. Competitive historical performer MFS has competitive historical performance across a broad range of global and international products. Past performance is no guarantee of future results. MFS global presence VANCOUVER PHOENIX MONTREAL TORONTO BOSTON LONDON PARIS MADRID ROTTERDAM FRANKFURT ZURICH MILAN TOKYO MEXICO CITY HONG KONG Corporate headquarters Research and investment centers ing offices Dedicated service centers SÃO PAULO BUENOS AIRES SINGAPORE SYDNEY page 7

10 WE BELIEVE IN THE POWER OF ACTIVE MANAGEMENT SM MFS is a global investment manager committed to skilled active management as the most powerful way to meet investors need for strong returns over the long term. We bring you the value of our insights and expertise through: Integrated Research Taking advantage of the depth and reach of our research teams around the world and across equity, fixed income and quantitative disciplines, we uncover investment opportunities and thoroughly analyze our best ideas to develop a full perspective on the securities we select for our portfolios. Global Collaboration We believe good decision making, driven by our ability to work together, share information and actively debate different viewpoints, leads to better investment outcomes for our clients. Active Risk Management To help protect capital and generate alpha, we seek segments where risk is appropriately rewarded, focus on selecting investments with the potential to hold their value through challenging markets and apply systematic risk reviews on multiple levels. Long-Term Conviction Developing our insights, differentiating meaningfully from the benchmark and staying true to our convictions over the long term allows the market time to potentially reward our investment ideas. SYMBOLS CLASS I CLASS R6 CLASS A MFS International Diversification SM Fund MDIJX MDIDX MFS Research International Fund MRSIX MRSKX MRSAX MFS International Fund MINIX MINJX MGIAX MFS International Fund MQGIX MGRDX MGRAX MFS s Equity Fund MEMIX MEMJX MEMAX MFS International New Discovery Fund MWNIX MIDLX MIDAX The investments you choose should correspond to your financial needs, goals, and risk tolerance. For assistance in determining your financial situation, please consult an investment professional. Before investing, consider the fund s investment objectives, risks, charges, and expenses. For a prospectus or summary prospectus containing this and other information, contact your investment professional or view online at mfs.com. Please read it carefully. Please note: Not all of the funds listed may be available for sale at a specific broker/dealer firm. Please check with your financial advisor. MFS Fund Distributors, Inc., Boston, MA MFSP-INTEQ-BRO-2/

11 Performance supplement for public use INTERNATIONAL AND GLOBAL FUNDS Must accompany brochure titled One world as of 6/30/18 From page 1 ( Many best-known brands are headquartered overseas ) World s stock opportunities 14 of the 25 largest corporations worldwide are international companies 3 Non-U.S. industry leaders Names you know 9 of the 10 largest electronics companies Samsung (South Korea) 7 of the 10 largest telecommunications companies Softbank (Japan) 7 of the 10 largest pharmaceutical companies Novartis AG (Switzerland) 6 of the 10 largest banks BNP Paribas (France) 3 Source: fortune.com, 2017 Global 500, July 2017 Percentage of brands held footnote 5 As of 6/30/18, the percentages of the brands held in MFS International Diversification SM Fund and its underlying funds were as follows: Samsung (International Diversification, 0.67%; MFS s Equity Fund, 4.59%; MFS Research International Fund, 0.31%, MFS International 0.45%); Softbank (International Diversification, 0.55% (Research International, 0.96%; MFS International Fund, 1.06%); BNP Paribas (International Diversification 0.44%; Research International, 1.45%); and Novartis AG (International Diversification, 0.44%; International, 1.75%). Please note that an investment in the fund does not constitute ownership of individual securities that make up the fund. The portfolio is actively managed, and current holdings may be different. Please see mfs.com for a current list of top-10 holdings for each of the underlying funds. characteristics are based on equivalent exposure, which measures how a portfolio s value would change due to price changes in an asset held either directly or, in the case of a derivative contract, indirectly. The market value of the holding may differ. From page 5 ( MFS International Diversification Fund ) MFS International Diversification SM Fund Morningstar Style Box TM. 9.9% 28.7% 31.6% 3.2% 6.7% 11.3% 0.6% 1.0% 0.4% Key Points large mid small The Morningstar Style Box breakdown gives an overview of a portfolio s stock coverage in each of the nine boxes of the Morningstar Style Box. The box to the left represents a style breakdown of MFS International Diversification Fund as of May 31, 2018, the latest data available. The portfolio s exposure to certain security types or risks may differ from the target weightings of the underlying funds. MFS International Fund multi-cap approach focused primarily on high quality non-us businesses with above-average growth potential meeks to invest in companies with strong fundamentals, sustainable competitive advantages, and reasonable valuations managed with a long term investment horizon MFS International New Discovery Fund an international growth fund focused on small- and mid-cap international stocks with valuations in line with fundamental strengths and growth prospects emphasis on high-quality companies drives this fund to seek companies with durable competitive advantages and strong management teams seeks companies that we believe can compound growth at above-average rates over a long-term investing horizon NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE From page 6 ( Our disciplined process ) Risk/return profiles chart Four of the six MFS international funds shown outperformed the MSCI EAFE (Europe, Australasia, Far East) Index for the ten-year period ended 6/30/18 (Class A shares at NAV). MFS International Fund: Risk / Return 7.35% MFS Research International Fund: Risk 18.16/ Return 2.57% MFS International Fund: Risk 17.39/ Return 5.03% MFS International New Discovery Fund: Risk 17.39/ Return 6.87% MFS s Equity Fund: Risk 21.33/ Return 0.74% MFS International Diversification Fund: Risk 17.04/Return 4.62% MSCI EAFE Index (net div): Risk 18.14/Return 2.84% Results would have been less favorable had sales charges of 5.75% been included. Performance data shown represent past performance and are no guarantee of future results. Investment return and principal value fluctuate so your shares, when sold, may be worth more or less than the original cost; current performance may be lower or higher than quoted. For most recent monthend performance, please visit mfs.com. Other share classes are available for which performance and expenses will differ and ratings may vary. Performance results reflect any applicable expense subsidies and waivers in effect during the periods shown. Without such subsidies and waivers the fund s performance results would be less favorable. All results assume the reinvestment of dividends and capital gains. The performance is as of the date shown; it may not include the fund s entire investment portfolio and is subject to change. See the reverse side for other important information.

12 From page 6 ( Our disciplined process ) Average annual returns, standard deviation and expense ratio table FUND AND OTHER INFORMATION, CLASS A, AS OF 6/30/18 Average annual returns, without sales charge (%) Average annual returns, with sales charge (%) Standard deviation Expense ratios (%) Waiver Inception 1 yr. 3 yr. 5 yr. 10 yr. 1 yr. 3 yr. 5 yr. 10 yr. 10 yr. Gross Net End Date MFS International Fund (max. 5.75%) 1, 2, 3, 5, 7 *, + 10/24/ MSCI EAFE (Europe, Australasia, Far East) Index (net div) MFS Research International Fund (max. 5.75%) 1, 2, 3 01/02/ MSCI EAFE (Europe, Australasia, Far East) Index (net div) MFS International Fund (max. 5.75%) 1, 2, 3, 4, 8, + 10/24/ MSCI All Country World (ex-us) Index (net div) MFS International New Discovery Fund (max. 5.75%) 1, 2, 3, 4, 6, 9 10/09/ MSCI All Country World (ex-us) Small Mid Index (net div) MFS s Equity Fund (max. 5.75%) 1, 2, 3, 4, ++ 10/24/ MSCI s Index (net div) MFS International Diversification Fund (max. 5.75%) 1, 2, 3,10 09/30/ /30/18 MSCI All Country World (ex-us) Index (net div) MSCI EAFE Index measures non-u.s. value stocks. 25 MSCI EAFE Index measures the non-u.s. stock market. 26 MSCI All Country World (ex-us) Index is a market capitalization index designed to measure equity performance in the developed and emerging markets, excluding the U.S. 27 MSCI All Country World (ex-us) Small Mid Index is a free float weighted index that is designed to measure equity market performance of small and mid cap companies across global developed and emerging market countries, excluding the U.S. 28 MSCI s Index measures emerging market stocks. 29 MSCI All Country World (ex-us) Index measures developed and emerging market stock markets. Gross Expense Ratio is the fund s total operating expense ratio from the fund s most recent prospectus. Net Expense Ratio reflects the reduction of expenses from fee waivers and reimbursements. Elimination of these reductions will result in higher expenses and lower performance. These reductions will continue until at least date noted under the Waiver End Date column. Standard deviation is an indicator of the portfolio s total return volatility, which is based on a minimum of 36 monthly returns. The larger the portfolio s standard deviation, the greater the portfolio s volatility. Standard deviation may be more or less favorable for other time periods. Index performance does not reflect any investment-related fees and expenses. It is not possible to invest directly in an index. * Effective at the close of business on May 29, 2015 (the Closing Date ), this fund will be closed to new investors subject to certain exceptions. Please see the prospectus for additional information. + Performance information shown for periods prior to November 30, 1998, reflects periods when a subadvisor (Foreign & Colonial Management Ltd. and its subsidiary Foreign and Colonial s Ltd.) was responsible for selecting investments for the fund. + + Performance information shown for periods prior to November 30, 1999, reflects periods when a subadvisor (Foreign & Colonial Management Ltd. and its subsidiary Foreign and Colonial s Ltd.) was responsible for selecting investments for the fund Morningstar, Inc. All rights reserved. The Morningstar information contained herein: (1 ) is proprietary to Morningstar; (2) may not be copied; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers is responsible for any damages or losses arising from any use of this information. Important risk considerations: 1 The fund may not achieve its objective and/or you could lose money on your investment in the fund. 2 Stock markets and investments in individual stocks are volatile and can decline significantly in response to or investor perception of, issuer, market, economic, industry, political, regulatory, geopolitical, and other conditions. 3 Investments in foreign markets can involve greater risk and volatility than U.S. investments because of adverse market, currency, economic, industry, political, regulatory, geopolitical, or other conditions. 4 markets can have less market structure, depth, and regulatory, custodial or operational oversight and greater political, social, and economic instability than developed markets. 5 Investments in derivatives can be used to take both long and short positions, be highly volatile, involve leverage (which can magnify losses), and involve risks in addition to the risks of the underlying indicator(s) on which the derivative is based, such as counterparty and liquidity risk. 6 Investments in smallcap companies can be more volatile than investments in larger companies. 7 The portfolio s investments can continue to be undervalued for long periods of time, not realize their expected value, and be more volatile than the stock market in general. 8 Investments in growth companies can be more sensitive to the company s earnings and more volatile than the stock market in general. 9 The fund s performance may be closely tied to the performance of companies in a limited number of sectors and could be more volatile than the performance of less focused funds. 10 MFS strategy of investing in underlying funds exposes the fund to the risks of the underlying funds. Each underlying fund pursues its own objective and strategies and may not achieve its objective. In addition, shareholders of the fund will indirectly bear the fees and expenses of the underlying funds. Please see the prospectus for further information on these and other risk considerations. Before investing, consider the fund s investment objectives, risks, charges, and expenses. For a prospectus, or summary prospectus, containing this and other information, contact your investment professional or view online at mfs.com. Please read it carefully. MFS Fund Distributors, Inc., Boston, MA MFSP-INTEQBR-SUP-7/