Q3 | 21 Investment Update MFS Aggressive Growth Allocation Fund
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Q3 | 21 Investment Update
MFS® Aggressive Growth Allocation Fund
A diversified portfolio consisting primarily of MFS stock funds
Provides convenient access to a broadly diversified, professionally managed portfolio of underlying MFS funds in a single investment and is
systematically rebalanced to help maintain target risk profile.
Benchmark: S&P 500 Index
Fund objective
Seeks a high level of total return consistent with an aggressive level of risk relative to the other MFS Asset Allocation Funds.
Summary of Results
For the three months ended September 30th, 2021, Class I shares of the MFS Aggressive Growth Allocation Fund (“fund”) provided a total return of
0.31% . This compares with a return of 0.58% 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 0.52%. The Blended Index reflects the blended
returns of broad market indices, with percentage allocations to each index designed to reflect the asset class allocations of the fund.
MFS Quarterly Market Commentary
US equities (as measured by the S&P 500 Index) started the first two months of the quarter with a rise of 5.49%, until volatility hit in September,
which resulted in marginally positive 0.58% return for the quarter in its entirety. From a market cap perspective, unlike large caps, both mid‐ and
small cap equities (as measured by the Russell Mid Cap Index and Russell 2000 Index) were negative for the quarter, with returns of ‐1.01% and ‐
4.36% respectively. US equities started the quarter on solid footing on the heels of a strong earnings season. Early gains were ultimately largely
erased over growth and inflation concerns, paired with the announcement of a likely slowdown of asset purchases by the Fed before year‐end.
Non‐US equities were marginally negative in the period returning ‐0.45% (as measured by the MSCI EAFE Index) while emerging markets (as
measured by the MSCI EM Index) fell a sizeable ‐8.09%. International stocks started with gains, driven by strong company earnings and an ongoing
economic recovery. However, worries of heightened inflation driven by supply chain constraints and rising energy prices put downward pressure
on returns towards the end of the reporting period. A strong US dollar and central bank rate hikes to contain inflation, coupled with regulatory
tightening and real estate market turmoil in China resulted in significant underperformance by emerging markets.
The MFS Aggressive Growth Allocation Fund Blended Index (6/28/02 ‐ 4/30/09) is comprised of the following indices: the S&P 500 (80%) and MSCI EAFE
(20%); for the period 5/1/09 ‐ 5/31/10, the index is comprised of the following indices: S&P 500 (65%), MSCI EAFE (30%), and FTSE EPRA/NAREIT
Developed Real Estate Index (5%); for the period 6/1/10 ‐ present, the index is comprised of the following indices: the S&P 500 (60%), MSCI EAFE
(30%), the Bloomberg Commodity Index (5%), and FTSE EPRA/NAREIT Developed Real Estate Index (5%).
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NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEEQ3 | 21 Investment Update
MFS Aggressive Growth Allocation Fund
MFS Quarterly Portfolio Commentary
MFS® Aggressive Growth Allocation (I Share Class) slightly lagged its blended index for the quarter.
The international equity segment was the largest detractor from relative returns. Within this segment, exposure to MFS® Emerging Markets Equity
Fund (3% allocation) and MFS® International Growth Fund (5% allocation) weakened relative performance.
Specialty segment was the largest contributor to relative returns. Within this segment, exposure to MFS® Commodity Strategy Fund (5%
allocation) benefitted results, but was offset by exposure to MFS® Global Real Estate (5% allocation), which detracted. Commodity markets
advanced due to a sharp increase in energy prices caused by increased demand in the wholesale gas market.
The US equity segment modestly supported relative returns. Within this segment, relative performance of MFS® Mid Cap Growth Fund (10%
allocation) and MFS® Value Fund (12% allocation) contributed to relative results and more than offset slightly negative contributions from
exposures to a majority of the funds within this segment.
The fund's allocation to a broad array of underlying funds helped provide diversification by asset class, investment style and geography in an effort
to dampen volatility and generate enhanced risk‐adjusted returns for investors.
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NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEEQ3 | 21 Investment Update
MFS Aggressive Growth Allocation Fund
Portfolio Performance and Target Allocation:
Average annual total returns (%) as of 09/30/2021
Portfolio % 10 Year 5 Year 3 Year 1 Year YTD QTD
Class A without sales charge 13.01 13.76 13.41 26.63 12.06 0.22
Class A with 5.75% maximum sales charge 12.35 12.42 11.19 19.35 5.62 -5.54
Class I 13.30 14.06 13.70 26.97 12.26 0.31
Class R6 ^ 13.30 14.06 13.70 26.97 12.26 0.31
Blended Benchmark 12.70 13.27 12.60 29.42 14.23 0.52
Blend constituents:
*
S&P 500 Index 16.63 16.90 15.99 30.00 15.92 0.58
MSCI EAFE Index (Net Div) 8.10 8.81 7.62 25.73 8.35 -0.45
Bloomberg Commodity Index -2.66 4.54 6.86 42.29 29.13 6.59
FTSE EPRA/NAREIT Dev. R.E. Index (Net Div) 8.34 4.53 6.18 29.64 14.46 -0.90
*
Primary Benchmark
Fund Expenses Class A Class I Class R6
Gross Expense Ratio 1.04 0.79 0.71
Net Expense Ratio 1.02 0.77 0.69
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 contractual fee waivers, and reimbursements. Elimination of these reductions will result in higher expenses and lower
performance. These reductions will continue until at least September 30, 2022.
The performance shown is attributable in part to unusual market conditions. These conditions may not be repeated in the future.
Performance data shown represents 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.
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.
^
Performance for Class R shares includes the performance of the fund's Class I shares, adjusted to take into account differences in sales loads and
class‐specific operating expenses (such as Rule 12b‐1 fees), if any, for periods prior to their offering. Please see the prospectus for additional
information about performance and expenses.
Sales Charges
Class I shares ("I") have no sales charge or Rule 12b‐1 fees and are available only to eligible investors.
Class R6 shares ("R6") have no initial sales charge or CDSC. Shares are available to eligible investors.
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NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEEQ3 | 21 Investment Update
MFS Aggressive Growth Allocation Fund
Portfolio Target Allocations
Domestic Equity 60.0%
10%
MFS Growth Fund 12.0%
MFS Value Fund 12.0%
MFS Research Fund 11.0%
MFS Mid Cap Growth Fund 10.0%
MFS Mid Cap Value Fund 10.0% 30%
MFS New Discovery Fund 2.5% 60%
1
MFS New Discovery Value Fund 2.5%
International Equity 30.0%
MFS Research International Fund 8.0%
MFS International Growth Fund 5.0%
MFS International Large Cap Value Fund 5.0%
MFS International Intrinsic Value Fund 2 5.0% Domestic Equity International Equity
3
MFS International New Discovery Fund 4.0% Specialty
MFS Emerging Markets Equity Fund 3.0%
Specialty 10.0%
MFS Commodity Strategy Fund 5.0%
MFS Global Real Estate Fund 5.0%
This portfolio is actively managed, and current holdings may be different. This is a list of the fund's asset class and underlying fund target
allocations.
1Effective at the close of business on November 29, 2019 (the "Closing Date"), the fund is closed to new investors subject to certain exceptions. Please
see the prospectus for additional information.
2 Effective June 1, 2019, the name of the MFS International Value Fund changed to MFS International Intrinsic Value Fund. There was no change to the
Fund's investment strategy or objective. Effective at the close of business on May 29, 2015 (the "Closing Date"), the fund will be closed to new
investors subject to certain exceptions. Please see the prospectus for additional information.
3Effective at the close of business on August 14, 2019 (the "Closing Date"), the fund closed to new investors subject to certain exceptions. Please see
the prospectus for additional information.
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NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEEQ3 | 21 Investment Update
MFS Aggressive Growth Allocation Fund
Important risk considerations
The fund may not achieve its objective and/or you could lose money on your investment in the fund.
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.
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.
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.
Disclosures
Standard & Poor's 500 Stock Index measures the broad U.S. stock market. MSCI EAFE (Europe, Australasia, Far East) Index measures the non‐US
stock market. The Bloomberg Commodity Index is designed to be 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 (live cattle/ lean hogs), among others, and are traded in a variety of currencies. FTSE EPRA/NAREIT
Developed Real Estate Index 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.
Index returns do not take into account investment related fees and expenses. It is not possible to invest directly in an index.
"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 Massachusetts Financial Services Company ("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 Dow Jones Indices LLC, Dow Jones, S&P, or their
respective affiliates, and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, their respective affiliates make any representation regarding the
advisability of investing in such product(s). Index data source:
MSCI. 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.
Source FTSE International Limited ("FTSE") © FTSE 2021. "FTSE®" is a trade mark of the London Stock Exchange Group companies and is used by
FTSE International Limited under licence. All rights in the FTSE indices and / or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its
licensors accept any liability for any errors or omissions in the FTSE indices and / or FTSE ratings or underlying data and no party may rely on any
FTSE indices, ratings and / or data underlying data contained in this communication. No further distribution of FTSE Data is permitted without
FTSE's express written consent. FTSE does not promote, sponsor or endorse the content of this communication.
The views expressed are those of MFS and are subject to change at any time. These views should not be relied upon as investment advice, as
securities recommendations, or as an indication of trading intent on behalf of any other MFS investment product. No forecasts can be guaranteed.
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® investment products are offered through MFS Fund Distributors, Inc., 111 Huntington Avenue, Boston, MA 02199.
26348.37
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