Supplement to the MFS 529 Savings Plan Participant Agreement and Disclosure Statement

Transcription

1 MFS 529 Savings Plan Supplement to the MFS 529 Savings Plan Participant Agreement and Disclosure Statement March 2011 Participant overview This supplement provides an overview of the and s that you incur when investing in the MFS 529 Savings Plan. It is only a summary and is not inted to be the sole source for this information. You should read and understand the entire MFS 529 Savings Plan Participant Agreement and Disclosure Statement as well as the prospectuses for the underlying funds in which the plan invests. These documents contain additional details and are important tools in understanding the costs of the plan. The MFS 529 Savings Plan is sponsored by the state of. Deping on the state of residence of the owner and/or the beneficiary, an investment in the MFS 529 Savings Plan may not afford state tax benefits. You should consult your own state plan to determine if other state tax benefits exist. The MFS 529 Savings Plan is a member of the 529 College Savings work. Information on the network can be obtained at The and s listed in this document are subject to change. Expenses of the funds in which the plan invests are subject to change, as detailed in the funds prospectuses. Fees and of the plan are also subject to change at any time, as approved by the 529 College Savings Board. For the fiscal year- of the plan and funds, please visit the plan s section of the program manager s Web site at mfs.com. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE 1 of 6

2 MFS 529 Savings Plan Costs of an MFS 529 Savings Plan The costs of an MFS 529 Savings Plan may be broken into two categories: sales charges ongoing s and SALES CHARGES Up-front sales charges Class 529A You generally will pay an up-front sales charge, or load, on contributions to the MFS 529 Savings Plan that are invested in Class 529A shares. The sales charge is included in the offering price of the shares and is deducted from your investment at the time of purchase. The following table summarizes the up-front sales charges on contributions that are invested in Class 529A shares. 529A SHARE PURCHASES % of investment charged as an up-front sales charge All investment portfolio options not listed below MFS High Income Fund and MFS Research Bond Fund Purchases of up to $50,000 Purchases from $50,001 to $100,000 Purchases from $100,001 to $250,000 Purchases over $250, % 4.75% 3.75% See prospectus. 4.75% 4.25% 3.75% See prospectus. MFS Limited Maturity Fund 2.50% 2.25% 2.00% See prospectus. MFS Cash Reserve Fund 0.00% 0.00% 0.00% 0.00% Contingent sales charges Class 529B and Class 529C You will not pay an up-front sales charge on contributions that are invested in Class 529B or Class 529C shares, but you generally will pay a contingent sales charge (CDSC) if the shares are redeemed within a certain period of time after purchase. The following table summarizes the charges for Class 529B shares and the respective time periods. Class 529C shares redeemed within 12 months of your purchase generally are subject to a 1.00% contingent sales charge. 529B SHARE PURCHASES % of investment charged as a contingent sales charge (CDSC) Year of redemption after purchase First Second Third Fourth Fifth Sixth Seventh and following Deferred sales charge 4.00% 4.00% 3.00% 3.00% 2.00% 1.00% 0.00% 2 of 6

3 ONGOING FEES AND EXPENSES Ongoing s and consist of the of the funds in which the plan invests, the administrative costs to run the plan, and the costs of the 529 College Savings work. Additional s and are deducted from investments in the plan based on the percentages in the tables below. DEFINITION OF TERMS Please see the footnotes at the bottom of this page, which include additional information relating to the following terms: Acquired (underlying) fund s and of Asset Allocation Funds s and other incurred by the mutual funds in which the asset allocation fund invests. This may reflect a reduction. For more information, please refer to the Fund Operating Expense table in the fund prospectus. State Administration that is the state of for its administration costs in overseeing the plan from the program manager paid by funds to the Program Manager, MFS Fund Distributors, Inc. The Program Manager does not retain any portion of the program manager. (12b-1) Distribution and service s to support the sale and of the fund s shares and the services provided by financial intermediaries. s The total of all (above listed) assessed against plan assets over the course of the year, not including sales charges or s (this is also known as the Gross ratio.) Fiscal year- information will vary from fund to fund. initial or sales charge Purchases may be subject to an initial up-front sales charge (Class 529A) or contingent sales charge (Class 529B and 529C). Please see the fund s prospectus for details. Accounts are subject to an $25, which is waived for s with a balance in excess of $25,000 or for s of residents. Please see each fund s prospectus for further details. ANNUAL ASSET-BASED FEES Acquired (underlying) fund s and 1 State (12b-1) s 2,4 initial sales charge 3 529A SHARES MFS Conservative Allocation Fund 0.76% 0.06% 0.10% 0.25% 1.17% 1.17% 5.75% $25 MFS Moderate Allocation Fund 0.83% 0.05% 0.10% 0.25% 1.23% 1.23% 5.75% $25 MFS Growth Allocation Fund 0.91% 0.05% 0.10% 0.25% 1.31% 1.31% 5.75% $25 MFS Aggressive Growth Allocation Fund 0.98% 0.07% 0.10% 0.25% 1.40% 1.40% 5.75% $25 MFS International Diversification SM Fund 1.10% 0.04% 0.10% 0.25% 1.49% 1.49% 5.75% $25 Management State (12b-1) s 2,4 initial sales charge 3 529A SHARES Massachusetts Investors Trust 0.33% 0.25% 0.10% 0.25% 0.93% 0.93% 5.75% $25 Massachusetts Investors Growth Stock Fund 0.33% 0.31% 0.10% 0.25% 0.99% 0.99% 5.75% $25 MFS Mid Cap Growth Fund 0.75% 0.34% 0.10% 0.25% 1.44% 1.44% 5.75% $25 MFS Mid Cap Value Fund 0.75% 0.26% 0.10% 0.25% 1.36% 1.35% 5.75% $25 1/31/12 MFS New Discovery Fund 0.90% 0.36% 0.10% 0.25% 1.61% 1.51% 5.75% $25 12/31/11 MFS Return Fund 0.35% 0.18% 0.10% 0.25% 0.88% 0.88% 5.75% $25 MFS Value Fund 0.56% 0.17% 0.10% 0.25% 1.08% 1.08% 5.75% $25 MFS International New Discovery Fund 0.94% 0.26% 0.10% 0.25% 1.55% 1.55% 5.75% $25 MFS Research International Fund 0.77% 0.22% 0.10% 0.25% 1.34% 1.34% 5.75% $25 MFS High Income Fund 0.46% 0.29% 0.10% 0.25% 1.10% 1.10% 4.75% $25 MFS Limited Maturity Fund 0.40% 0.22% 0.10% 0.25% 0.97% 0.87% 2.50% $25 8/31/11 MFS Research Bond Fund 0.50% 0.17% 0.10% 0.25% 1.02% 0.92% 4.75% $25 8/31/11 MFS Cash Reserve Fund 0.40% 0.29% 0.10% 0.25% 1.04% 0.79% 0.00% $25 12/31/11 continued on next page 1 The underlying fund may reflect a reduction. For more information, please refer to the Fund Operating Expense table in each fund s prospectus. 2 s are comprised of underlying fund or management, other, state and and service (12b-1) specified in the adjacent columns. 3 The amount of initial sales charge you pay differs based on the amount you invest and may be waived in some circumstances. For details on sales charge reductions and waivers, please see the fund s prospectus and statement of additional information. 4 Gross ratio is the fund s total operating ratio from the fund s most recent prospectus. ratio reflects the reduction of from waivers, reimbursements, and the exclusion of interest and s. Elimination of these reductions will result in higher and lower performance. 5 These reductions will continue until at least date noted under the date column. 3 of 6

4 ANNUAL ASSET-BASED FEES Acquired (underlying) fund s and 1 Management State State (12b-1) (12b-1) s 2,4 s B SHARES MFS Conservative Allocation Fund 0.76% 0.06% 0.10% 1.00% 1.92% 1.92% 4.00% $25 MFS Moderate Allocation Fund 0.83% 0.05% 0.10% 1.00% 1.98% 1.98% 4.00% $25 MFS Growth Allocation Fund 0.91% 0.05% 0.10% 1.00% 2.06% 2.06% 4.00% $25 MFS Aggressive Growth Allocation Fund 0.98% 0.07% 0.10% 1.00% 2.15% 2.15% 4.00% $25 MFS International Diversification SM Fund 1.10% 0.04% 0.10% 1.00% 2.24% 2.24% 4.00% $25 529B SHARES Massachusetts Investors Trust 0.33% 0.25% 0.10% 1.00% 1.68% 1.68% 4.00% $25 Massachusetts Investors Growth Stock Fund 0.33% 0.31% 0.10% 1.00% 1.74% 1.74% 4.00% $25 MFS Mid Cap Growth Fund 0.75% 0.34% 0.10% 1.00% 2.19% 2.19% 4.00% $25 MFS Mid Cap Value Fund 0.75% 0.26% 0.10% 1.00% 2.11% 2.10% 4.00% $25 1/31/12 MFS New Discovery Fund 0.90% 0.36% 0.10% 1.00% 2.36% 2.26% 4.00% $25 12/31/11 MFS Return Fund 0.35% 0.18% 0.10% 1.00% 1.63% 1.63% 4.00% $25 MFS Value Fund 0.56% 0.17% 0.10% 1.00% 1.83% 1.83% 4.00% $25 MFS International New Discovery Fund 0.94% 0.26% 0.10% 1.00% 2.30% 2.30% 4.00% $25 MFS Research International Fund 0.77% 0.22% 0.10% 1.00% 2.09% 2.09% 4.00% $25 MFS High Income Fund 0.46% 0.29% 0.10% 1.00% 1.85% 1.85% 4.00% $25 MFS Limited Maturity Fund 0.40% 0.22% 0.10% 1.00% 1.72% 1.63% 4.00% $25 8/31/11 MFS Research Bond Fund 0.50% 0.17% 0.10% 1.00% 1.77% 1.77% 4.00% $25 MFS Cash Reserve Fund 0.40% 0.29% 0.10% 1.00% 1.79% 1.79% 0.00% $25 1 The underlying fund may reflect a reduction. For more information, please refer to the Fund Operating Expense table in each fund s prospectus. 2 s are comprised of underlying fund or management, other, state and and service (12b-1) specified in the adjacent columns. 3 The amount of initial sales charge you pay differs based on the amount you invest and may be waived in some circumstances. For details on sales charge reductions and waivers, please see the fund s prospectus and statement of additional information. 4 Gross ratio is the fund s total operating ratio from the fund s most recent prospectus. ratio reflects the reduction of from waivers, reimbursements, and the exclusion of interest and s. Elimination of these reductions will result in higher and lower performance. 5 These reductions will continue until at least date noted under the date column. 6 Purchases are not subject to an initial up-front sales charge (load); however, if you redeem your 529B shares within the first six years after purchase or your 529C shares within 12 months of your purchase, generally you will be subject to a contingent sales charge. Please see the fund s prospectus and statement of additional information for details. 4 of 6

5 ANNUAL ASSET-BASED FEES Acquired (underlying) fund s and 1 State (12b-1) s 2,4 529C SHARES MFS Conservative Allocation Fund 0.76% 0.06% 0.10% 1.00% 1.92% 1.92% 1.00% $25 MFS Moderate Allocation Fund 0.83% 0.05% 0.10% 1.00% 1.98% 1.98% 1.00% $25 MFS Growth Allocation Fund 0.91% 0.05% 0.10% 1.00% 2.06% 2.06% 1.00% $25 MFS Aggressive Growth Allocation Fund 0.98% 0.07% 0.10% 1.00% 2.15% 2.15% 1.00% $25 MFS International Diversification SM Fund 1.10% 0.04% 0.10% 1.00% 2.24% 2.24% 1.00% $25 Management State (12b-1) s C SHARES Massachusetts Investors Trust 0.33% 0.25% 0.10% 1.00% 1.68% 1.68% 1.00% $25 Massachusetts Investors Growth Stock Fund 0.33% 0.31% 0.10% 1.00% 1.74% 1.74% 1.00% $25 MFS Mid Cap Growth Fund 0.75% 0.34% 0.10% 1.00% 2.19% 2.19% 1.00% $25 MFS Mid Cap Value Fund 0.75% 0.26% 0.10% 1.00% 2.11% 2.10% 1.00% $25 1/31/12 MFS New Discovery Fund 0.90% 0.36% 0.10% 1.00% 2.36% 2.26% 1.00% $25 12/31/11 MFS Return Fund 0.35% 0.18% 0.10% 1.00% 1.63% 1.63% 1.00% $25 MFS Value Fund 0.56% 0.17% 0.10% 1.00% 1.83% 1.83% 1.00% $25 MFS International New Discovery Fund 0.94% 0.26% 0.10% 1.00% 2.30% 2.30% 1.00% $25 MFS Research International Fund 0.77% 0.22% 0.10% 1.00% 2.09% 2.09% 1.00% $25 MFS High Income Fund 0.46% 0.29% 0.10% 1.00% 1.85% 1.85% 1.00% $25 MFS Limited Maturity Fund 0.40% 0.22% 0.10% 1.00% 1.72% 1.72% 1.00% $25 8/31/11 MFS Research Bond Fund 0.50% 0.17% 0.10% 1.00% 1.77% 1.77% 1.00% $25 MFS Cash Reserve Fund 0.40% 0.29% 0.10% 1.00% 1.79% 1.79% 1.00% $25 1 The underlying fund may reflect a reduction. For more information, please refer to the Fund Operating Expense table in each fund s prospectus. 2 s are comprised of underlying fund or management, other, state and and service (12b-1) specified in the adjacent columns. 3 The amount of initial sales charge you pay differs based on the amount you invest and may be waived in some circumstances. For details on sales charge reductions and waivers, please see the fund s prospectus and statement of additional information. 4 Gross ratio is the fund s total operating ratio from the fund s most recent prospectus. ratio reflects the reduction of from waivers, reimbursements, and the exclusion of interest and s. Elimination of these reductions will result in higher and lower performance. 5 These reductions will continue until at least date noted under the date column. 6 Purchases are not subject to an initial up-front sales charge (load); however, if you redeem your 529B shares within the first six years after purchase or your 529C shares within 12 months of your purchase, generally you will be subject to a contingent sales charge. Please see the fund s prospectus and statement of additional information for details. 5 of 6

6 Summary For additional information on the and s of the MFS 529 Savings Plan, including hypothetical examples of these s as they would apply to real dollar amounts invested in the funds, please review the prospectuses of the funds and the Participant Agreement and Disclosure Statement. In addition, please visit mfs.com for cost- calculator tools that allow you to input the amount invested, time frame, and share class in order to calculate the effects of the and s on your investment. information on the operation of the plan and the funds in which it invests, including available investment options, associated risks, and performance information, may be found in the funds prospectuses, the MFS 529 Savings Plan Participant Agreement and Disclosure Statement, the plan s Web site at mfs.com, and by contacting the plan directly by calling MFS ( ) toll free any business day. MFS does not provide legal, tax, or ing advice. Any statement contained in this communication (including any attachments) concerning U.S. tax matters was not inted or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code. This communication was written to support the promotion or marketing of the transaction(s) or matter(s) addressed. Clients of MFS should obtain their own indepent tax and legal advice based on their particular circumstances. There is a $25 associated with the MFS 529 Savings Plan. This is waived for residents and for those s with assets of $25,000 or more. Investments in 529 plans involve investment risks. You should consider your financial needs, goals, and risk tolerance prior to investing. Clients investing in 529 savings plans should consult a tax advisor or other financial professional to ensure that they obtain the desired tax benefits. Tax benefits of investing in 529 plans dep on meeting distinct requirements such as whether an investor s home state offers state tax or other benefits only available in the home state 529 college savings plan. Withdrawals of earnings not used to pay for qualified higher education are subject to an additional 10% penalty. State taxes may also apply. The MFS 529 Savings Plan is a flexible college investing plan sponsored by the state of, acting by and through the 529 College Savings Board, and is administered by MFS Investment Management. Deping on your state of residence and the state of residence of the beneficiary, an investment in the MFS 529 Savings Plan may not afford you or your beneficiary state tax or other benefits only available for investments in such state s qualified tuition program. Before investing in the MFS 529 Savings Plan, consider the investment objectives, risks, charges, and. For a prospectus, or summary prospectus if available, containing this and other information, as well as a Participant Agreement and Disclosure Statement and its Supplement with overview, contact your investment professional or view online at mfs.com. Read them carefully. MFS Fund Distributors, Inc., 500 Boylston Street, Boston, MA EXPENSE-INS-3/11 10-EX