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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 811-21780
MFS SERIES TRUST XII
(Exact name of registrant as specified in charter)
500 Boylston Street, Boston, Massachusetts 02116
(Address of principal executive offices) (Zip code)
Susan S. Newton
Massachusetts Financial Services Company
500 Boylston Street
Boston, Massachusetts 02116
(Name and address of agents for service)
Registrant’s telephone number, including area code: (617) 954-5000
Date of fiscal year end: April 30*
Date of reporting period: April 30, 2009
| ** | This Form N-CSR pertains to the following series of the Registrant: MFS Lifetime Retirement Income Fund, MFS Lifetime 2010 Fund, MFS Lifetime 2020 Fund, MFS Lifetime 2030 Fund and MFS Lifetime 2040 Fund. The remaining series of the Registrant, MFS Sector Rotational Fund, has a fiscal year end of October 31. |
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| ITEM 1. | REPORTS TO STOCKHOLDERS. |
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| CONTACT INFORMATION | BACK COVER |
SIPC Contact Information: You may obtain information about the Securities Investor Protection Corporation (“SIPC”), including the SIPC Brochure, by contacting SIPC either by telephone (202-371-8300) or by accessing SIPC’s website address (www.sipc.org).
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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Dear Shareholders:
The market downturns and economic setbacks of late probably rank among the worst financial declines most of us have experienced. Inevitably, people may be questioning their commitment to investing. Still, it is important to remember that downturns are an inescapable part of the business cycle. Such troughs have been seen before, and if we can use history as a guide, market recoveries typically have followed.
Recent events have clearly shown us the value of certain types of investments. In this environment, two of the hallmarks of mutual funds — transparency and liquidity — have become critically important. Unlike some other types of investments, the operations of mutual funds are relatively transparent to their shareholders. With their daily redemption feature, mutual funds also generally provide easy, convenient access to one’s money. Through these recent market upheavals, this level of liquidity enhanced the ability of mutual fund investors to respond and modify their investments as they and their advisors saw fit — a flexibility that those in less liquid investments simply did not have at their disposal.
At MFS® we take particular pride in how well mutual funds can serve investors because we invented the mutual fund in the United States. Established in 1924, Massachusetts Investors Trust was the nation’s first fund. Recent market events only reinforce what we have learned through 85 years — that mutual funds provide unique features that are important to investors in any type of market climate.
Respectfully,
Robert J. Manning
Chief Executive Officer and Chief Investment Officer
MFS Investment Management®
June 15, 2009
The opinions expressed in this letter are subject to change, may not be relied upon for investment advice, and no forecasts can be guaranteed.
Before investing, consider the fund’s investment objectives, risks, charges, and expenses. For a prospectus containing this and other information, contact your investment professional or view online. Read it carefully.
MFS Fund Distributors, Inc., 500 Boylston Street, Boston, MA 02116
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MFS® Lifetime Retirement Income Fund
Portfolio target allocation
Portfolio actual allocation
| Portfolio holdings | ||
| MFS Research Bond Fund | 24.8% | |
| MFS Limited Maturity Fund | 19.9% | |
| MFS Government Securities Fund | 9.9% | |
| MFS Inflation-Adjusted Bond Fund | 9.8% | |
| MFS Research Fund | 9.1% | |
| MFS Research International Fund | 3.1% | |
| MFS High Income Fund | 3.1% | |
| MFS Mid Cap Value Fund | 3.0% | |
| MFS Mid Cap Growth Fund | 3.0% | |
| MFS Emerging Markets Debt Fund | 3.0% | |
| MFS New Discovery Fund | 2.1% | |
| MFS Diversified Target Return Fund | 2.0% | |
| MFS Core Growth Fund | 2.0% | |
| MFS Value Fund | 2.0% | |
| MFS Global Real Estate Fund | 1.0% | |
| MFS International Value Fund | 1.0% | |
| MFS International Growth Fund | 1.0% | |
| Cash & Other Net Assets | 0.2% |
MFS® Lifetime 2010 Fund
Portfolio target allocation
Portfolio actual allocation
| Portfolio holdings | ||
| MFS Research Bond Fund | 23.5% | |
| MFS Limited Maturity Fund | 17.0% | |
| MFS Government Securities Fund | 9.9% | |
| MFS Inflation-Adjusted Bond Fund | 9.8% | |
| MFS Research Fund | 8.5% | |
| MFS High Income Fund | 3.6% | |
| MFS Emerging Markets Debt Fund | 3.6% | |
| MFS Mid Cap Value Fund | 3.4% | |
| MFS Research International Fund | 3.3% | |
| MFS Mid Cap Growth Fund | 3.3% | |
| MFS Value Fund | 3.1% | |
| MFS Core Growth Fund | 3.1% | |
| MFS New Discovery Fund | 2.1% | |
| MFS Diversified Target Return Fund | 2.0% | |
| MFS International Growth Fund | 1.3% | |
| MFS International Value Fund | 1.3% | |
| MFS Global Real Estate Fund | 1.1% | |
| Cash & Other Net Assets | 0.1% |
MFS® Lifetime 2020 Fund
Portfolio target allocation
Portfolio actual allocation
| Portfolio holdings | ||
| MFS Research Bond Fund | 12.2% | |
| MFS Core Growth Fund | 9.9% | |
| MFS Value Fund | 9.8% | |
| MFS Research Fund | 9.0% | |
| MFS Mid Cap Value Fund | 7.5% | |
| MFS Mid Cap Growth Fund | 7.5% | |
| MFS Government Securities Fund | 7.1% | |
| MFS Research International Fund | 6.6% | |
| MFS High Income Fund | 5.1% | |
| MFS Emerging Markets Debt Fund | 5.0% | |
| MFS Inflation-Adjusted Bond Fund | 4.9% | |
| MFS International Value Fund | 3.5% | |
| MFS International Growth Fund | 3.5% | |
| MFS New Discovery Fund | 3.3% | |
| MFS Global Real Estate Fund | 2.3% | |
| MFS International New Discovery Fund | 1.3% | |
| MFS Diversified Target Return Fund | 1.0% | |
| MFS Emerging Markets Equity Fund | 0.3% | |
| Cash & Other Net Assets | 0.2% |
Percentages are based on net assets as of 4/30/09.
The portfolio is actively managed and current holdings may be different.
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Portfolio Composition – continued
MFS® Lifetime 2030 Fund
Portfolio target allocation
Portfolio actual allocation
| Portfolio holdings | ||
| MFS Core Growth Fund | 12.5% | |
| MFS Value Fund | 12.5% | |
| MFS Mid Cap Value Fund | 10.3% | |
| MFS Mid Cap Growth Fund | 10.3% | |
| MFS Research Fund | 9.0% | |
| MFS Research International Fund | 8.0% | |
| MFS International Value Fund | 6.3% | |
| MFS International Growth Fund | 6.3% | |
| MFS New Discovery Fund | 4.6% | |
| MFS Global Real Estate Fund | 4.3% | |
| MFS Research Bond Fund | 3.4% | |
| MFS Inflation-Adjusted Bond Fund | 3.4% | |
| MFS International New Discovery Fund | 3.3% | |
| MFS High Income Fund | 1.8% | |
| MFS Emerging Markets Debt Fund | 1.8% | |
| MFS Emerging Markets Equity Fund | 1.6% | |
| MFS Diversified Target Return Fund | 0.4% | |
| Cash & Other Net Assets | 0.2% |
MFS® Lifetime 2040 Fund
Portfolio target allocation
Portfolio actual allocation
| Portfolio holdings | ||
| MFS Core Growth Fund | 12.9% | |
| MFS Value Fund | 12.9% | |
| MFS Mid Cap Value Fund | 11.0% | |
| MFS Mid Cap Growth Fund | 11.0% | |
| MFS Research Fund | 9.0% | |
| MFS Research International Fund | 8.0% | |
| MFS International Value Fund | 7.0% | |
| MFS International Growth Fund | 7.0% | |
| MFS New Discovery Fund | 5.0% | |
| MFS Global Real Estate Fund | 5.0% | |
| MFS International New Discovery Fund | 4.0% | |
| MFS Research Bond Fund | 2.5% | |
| MFS Inflation-Adjusted Bond Fund | 2.5% | |
| MFS Emerging Markets Equity Fund | 2.0% | |
| Cash & Other Net Assets | 0.2% |
Percentages are based on net assets as of 4/30/09.
The portfolio is actively managed and current holdings may be different.
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Market environment
The global economy and financial markets experienced substantial deterioration and extraordinary volatility over the reporting period. Strong headwinds in the U.S. included accelerated deterioration in the housing market, anemic corporate investment, a rapidly declining job market, and a much tighter credit environment. During the period, a seemingly continuous series of tumultuous financial events hammered markets, including: the distressed sale of failing Bear Stearns to JPMorgan Chase; the conservatorship of Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac; the bankruptcy of investment bank Lehman Brothers; the Fed’s complex intervention of insurance company AIG; the nationalization of several large European banks; the failure of Washington Mutual; the distressed sale of Wachovia; the virtual failure of Iceland’s banking sector; and, the collapse of the global auto industry. As a result of this barrage of turbulent news, global equity markets pushed significantly lower and credit markets witnessed the worst market decline since the beginning of the credit crisis. Though credit conditions and equity indices improved towards the end of the period, the state of financial and macroeconomic dislocation remained very severe.
While somewhat resilient during the first half of the period, the global economy and financial system increasingly experienced considerable negative spillovers from the U.S. slowdown. Not only did Europe and Japan show obvious signs of economic decline, the more powerful engine of global growth – emerging markets – also displayed weakening dynamics. The synchronized global downturn in economic activity experienced in the fourth quarter of 2008 and the first quarter of 2009 was among the most intense in the post-World War II period. However, by the end of the period there emerged tentative signs that the worst of the global macroeconomic deterioration had passed, which caused equity and credit markets to rally.
During the reporting period, the Fed cut interest rates aggressively and introduced a multitude of new lending facilities to alleviate ever-tightening credit markets, while the U.S. government designed and implemented fiscal stimulus packages. Although several other global central banks also cut interest rates during the early part of the reporting period, the dilemma of rising energy and food prices heightened concerns among central bankers that inflationary expectations might become unhinged despite weaker growth. Only later in the reporting period did rapidly slowing global growth result in a very precipitous decline in commodity prices, which significantly eased inflation and inflationary expectations. As inflationary concerns diminished in the face of global deleveraging, and equity and credit markets deteriorated more sharply, a coordinated interest rate cut marked the beginning of much more aggressive easing by the major global central banks. By the end of the period, several central banks had approached their lower bound on policy rates and were examining the implementation and ramifications of quantitative easing as a means to further loosen monetary policy to offset the continuing fall in global wealth.
MFS Lifetime Retirement Income Fund
Summary of results
For the twelve months ended April 30, 2009, Class A shares of the MFS Lifetime Retirement Income Fund provided a total return of –6.90%, at net asset value. This compares with a return of 3.84% for the fund’s benchmark, the Barclays Capital U.S. Aggregate Bond Index. The fund’s other benchmark, the MFS Lifetime Retirement Income Fund Blend, generated a return of –5.14%.
Detractors from performance
The principal detractors from performance relative to the blended benchmark were the fund’s allocations to equity funds, in particular, the MFS Value Fund and the MFS Research Fund. Allocations to fixed income funds with any credit exposure were also detrimental to performance amid the recent turmoil where treasury securities outperformed credit issues. Additionally, investments in the MFS Floating Rate High Income Fund held back relative performance as the bank loan segment of the fixed income market struggled.
Contributors to performance
During the reporting period, the principal contributors to relative performance were our investments in fixed income and money market funds, particularly the MFS Government Securities Fund and the MFS Money Market Fund. At the end of the reporting period, the MFS Lifetime Retirement Income Fund did not hold investments in the MFS Money Market Fund. Although, overall, the fund’s allocation to the MFS Value Fund was among the most significant detractors, security selection was one of the more positive factors for relative performance. The MFS Value Fund significantly outperformed its benchmark, the Russell 1000 Value index during the reporting period.
MFS Lifetime 2010 Fund
Summary of results
For the twelve months ended April 30, 2009, Class A shares of the MFS Lifetime 2010 Fund provided a total return of –9.89%, at net asset value. This compares with a return of 3.84% for the fund’s benchmark, the Barclays Capital U.S. Aggregate Bond Index. The fund’s other benchmark, the MFS Lifetime 2010 Fund Blend, generated a return of –8.85%.
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Management Review – continued
Detractors from performance
Principal detractors from performance relative to the blended benchmark were the fund’s allocations to equity funds, in particular, the MFS Value Fund and the MFS Research Fund. Allocations to fixed income funds with any credit exposure were also detrimental to performance amid the recent turmoil where treasury securities outperformed credit issues. Additionally, investments in the MFS Floating Rate High Income Fund held back relative performance as the bank loan segment of the fixed income market struggled.
Contributors to performance
During the reporting period, the fund benefited from our investments in fixed income and money market funds, particularly the MFS Government Securities Fund and the MFS Money Market Fund. At the end of the reporting period, the MFS Lifetime 2010 Fund did not hold investments in the MFS Money Market Fund. Our investment in the MFS Limited Maturity Fund also contributed to relative results.
MFS Lifetime 2020 Fund
Summary of results
For the twelve months ended April 30, 2009, Class A shares of the MFS Lifetime 2020 Fund provided a total return of –26.93%, at net asset value. This compares with a return of –35.31% for the fund’s benchmark, the Standard & Poor’s 500 Stock Index. The fund’s other benchmark, the MFS Lifetime 2020 Fund Blend, generated a return of –25.38%.
Detractors from performance
The principal detractors from performance relative to the blended benchmark were the fund’s allocations to equity funds, particularly to international equity funds, such as the MFS Research International Fund. Allocations to domestic equity funds, such as the MFS Mid Cap Growth Fund, also detracted from performance.
Contributors to performance
During the reporting period, the principal contributors to relative performance were our investments in fixed income funds, particularly the MFS Research Bond Fund and the MFS Government Securities Fund.
MFS Lifetime 2030 Fund
Summary of results
For the twelve months ended April 30, 2009, Class A shares of the MFS Lifetime 2030 Fund provided a total return of –35.45%, at net asset value. This compares with a return of –35.31% for the fund’s benchmark, the Standard & Poor’s 500 Stock Index. The fund’s other benchmark, the MFS Lifetime 2030 Fund Blend, generated a return of –34.78%.
Detractors from performance
The principal detractors from performance relative to the blended benchmark were the fund’s allocations to equity funds, particularly to international equity funds, such as the MFS Research International Fund. Allocations to domestic equity funds, such as the MFS Mid Cap Growth Fund, also detracted from performance.
Contributors to performance
During the reporting period, the principal contributors to relative performance were our investments in fixed income funds, particularly the MFS Research Bond Fund and the MFS Government Securities Fund. The fund’s investments in the MFS New Discovery Fund also contributed to relative results.
MFS Lifetime 2040 Fund
Summary of results
For the twelve months ended April 30, 2009, Class A shares of the MFS Lifetime 2040 Fund provided a total return of –37.10%, at net asset value. This compares with a return of –35.31% for the fund’s benchmark, the Standard & Poor’s 500 Stock Index. The fund’s other benchmark, the MFS Lifetime 2040 Fund Blend, generated a return of –36.73%.
Detractors from performance
The principal detractors from performance relative to the blended benchmark were the fund’s allocations to equity funds, particularly to international equity funds, such as the MFS Research International Fund. Allocations to domestic equity funds, such as the MFS Mid Cap Growth Fund, also detracted from performance.
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Management Review – continued
Contributors to performance
The principal contributors to performance relative to the blended benchmark were the fund’s investments in the MFS New Discovery Fund, MFS Value Fund, and the MFS Research Fund.
Respectfully,
Joseph Flaherty
Portfolio Manager
Note to Shareholders: In December 2008, the Board of Trustees of the funds approved revisions to the target asset class allocations, underlying fund selections and underlying fund target weightings of the funds. These revisions occurred during the period.
The views expressed in this report are those of the portfolio manager 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 4/30/09
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® Lifetime Retirement Income Fund
Growth of a hypothetical $10,000 investment (t)
Average annual total returns through 4/30/09
Without sales charge
| Share class | Class inception date | 1-yr | Life (t) | |||||||
| A | 9/29/05 | (6.90)% | 1.44% | |||||||
| B | 9/29/05 | (7.52)% | 0.78% | |||||||
| C | 9/29/05 | (7.61)% | 0.78% | |||||||
| I | 9/29/05 | (6.68)% | 1.79% | |||||||
| R1 | 9/29/05 | (7.51)% | 0.74% | |||||||
| R2 | 9/29/05 | (7.05)% | 1.19% | |||||||
| R3 | 9/29/05 | (6.92)% | 1.41% | |||||||
| R4 | 9/29/05 | (6.67)% | 1.73% | |||||||
| Comparative benchmarks | ||||||||||
| Barclays Capital U.S. Aggregate Bond Index (f) | 3.84% | 4.83% | ||||||||
| MFS Lifetime Retirement Income Fund Blend (f)* | (5.14)% | 2.51% | ||||||||
| With sales charge | ||||||||||
A With Initial Sales Charge (5.75%) | (12.25)% | (0.22)% | ||||||||
B With CDSC (Declining over six years from 4% to 0%) (x) | (11.09)% | 0.03% | ||||||||
C With CDSC (1% for 12 months) (x) | (8.50)% | 0.78% | ||||||||
Class I, R1, R2, R3, and R4 shares do not have a sales charge.
CDSC – Contingent Deferred Sales Charge.
| (f) | Source: FactSet Research Systems Inc. |
| (t) | For the period from the commencement of the fund’s investment operations, September 29, 2005, through the stated period end. |
| (x) | Assuming redemption at the end of the applicable period. |
| * | The weights of the components of the blended benchmark (MFS Lifetime Retirement Income Fund Blend) are 70% Barclays Capital U.S. Aggregate Bond Index, 20% Standard & Poor’s 500 Stock Index, and 10% Barclays Capital Three-Month U.S. Treasury Bill Index. |
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Performance Summary – continued
MFS® Lifetime 2010 Fund
Growth of a hypothetical $10,000 investment (t)
Average annual total returns through 4/30/09
Without sales charge
| Share class | Class inception date | 1-yr | Life (t) | |||||||
| A | 9/29/05 | (9.89)% | 1.46% | |||||||
| B | 9/29/05 | (10.46)% | 0.80% | |||||||
| C | 9/29/05 | (10.52)% | 0.77% | |||||||
| I | 9/29/05 | (9.64)% | 1.78% | |||||||
| R1 | 9/29/05 | (10.49)% | 0.71% | |||||||
| R2 | 9/29/05 | (10.06)% | 1.17% | |||||||
| R3 | 9/29/05 | (9.85)% | 1.46% | |||||||
| R4 | 9/29/05 | (9.64)% | 1.71% | |||||||
| Comparative benchmarks | ||||||||||
| Barclays Capital U.S. Aggregate Bond Index (f) | 3.84% | 4.83% | ||||||||
| MFS Lifetime 2010 Fund Blend (f)* | (8.85)% | 2.02% | ||||||||
| With sales charge | ||||||||||
A With Initial Sales Charge (5.75%) | (15.07)% | (0.20)% | ||||||||
B With CDSC (Declining over six years from 4% to 0%) (x) | (13.92)% | 0.02% | ||||||||
C With CDSC (1% for 12 months) (x) | (11.38)% | 0.77% | ||||||||
Class I, R1, R2, R3, and R4 shares do not have a sales charge.
CDSC – Contingent Deferred Sales Charge.
| (f) | Source: FactSet Research Systems Inc. |
| (t) | For the period from the commencement of the fund’s investment operations, September 29 2005, through the stated period end. |
| (x) | Assuming redemption at the end of the applicable period. |
| * | The weights of the components of the blended benchmark (MFS Lifetime 2010 Fund Blend) are designed to change systematically over time on a preset schedule. The table below depicts the individual component weights (in percent) at the beginning and at the end of the reporting period: |
| 4/30/09 | 4/30/08 | |||||||||
| Barclays Capital U.S. Aggregate Bond Index | 64.00% | 60.00% | ||||||||
| Standard & Poor’s 500 Stock Index | 24.50% | 27.50% | ||||||||
| Barclays Capital Three-Month U.S. Treasury Bill Index | 10.00% | 10.00% | ||||||||
| MSCI EAFE Index | 1.50% | 2.50% | ||||||||
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Performance Summary – continued
MFS® Lifetime 2020 Fund
Growth of a hypothetical $10,000 investment (t)
Average annual total returns through 4/30/09
Without sales charge
| Share class | Class inception date | 1-yr | Life (t) | |||||||
| A | 9/29/05 | (26.93)% | (2.91)% | |||||||
| B | 9/29/05 | (27.49)% | (3.58)% | |||||||
| C | 9/29/05 | (27.49)% | (3.56)% | |||||||
| I | 9/29/05 | (26.72)% | (2.58)% | |||||||
| R1 | 9/29/05 | (27.46)% | (3.62)% | |||||||
| R2 | 9/29/05 | (27.05)% | (3.15)% | |||||||
| R3 | 9/29/05 | (26.91)% | (2.91)% | |||||||
| R4 | 9/29/05 | (26.75)% | (2.65)% | |||||||
| Comparative benchmarks | ||||||||||
| Standard & Poor’s 500 Stock Index (f) | (35.31)% | (6.88)% | ||||||||
| MFS Lifetime 2020 Fund Blend (f)* | (25.38)% | (2.29)% | ||||||||
| With sales charge | ||||||||||
A With Initial Sales Charge (5.75%) | (31.13)% | (4.50)% | ||||||||
B With CDSC (Declining over six years from 4% to 0%) (x) | (30.30)% | (4.31)% | ||||||||
C With CDSC (1% for 12 months) (x) | (28.19)% | (3.56)% | ||||||||
Class I, R1, R2, R3, and R4 shares do not have a sales charge.
CDSC – Contingent Deferred Sales Charge.
| (f) | Source: FactSet Research Systems Inc. |
| (t) | For the period from the commencement of the fund’s investment operations, September 29, 2005, through the stated period end. |
| (x) | Assuming redemption at the end of the applicable period. |
| * | The weights of the components of the blended benchmark (MFS Lifetime 2020 Fund Blend) are designed to change systematically over time on a preset schedule. The table below depicts the individual component weights (in percent) at the beginning and at the end of the reporting period: |
| 4/30/09 | 4/30/08 | |||||||||
| Barclays Capital Three-Month U.S. Treasury Bill Index | 53.00% | 55.00% | ||||||||
| Standard & Poor’s 500 Stock Index | 30.50% | 27.50% | ||||||||
| MSCI EAFE Index | 13.00% | 15.00% | ||||||||
| Barclays Capital U.S. Aggregate Bond Index | 3.50% | 2.50% | ||||||||
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Performance Summary – continued
MFS® Lifetime 2030 Fund
Growth of a hypothetical $10,000 investment (t)
Average annual total returns through 4/30/09
Without sales charge
| Share class | Class inception date | 1-yr | Life (t) | |||||||
| A | 9/29/05 | (35.45)% | (6.09)% | |||||||
| B | 9/29/05 | (35.89)% | (6.70)% | |||||||
| C | 9/29/05 | (35.82)% | (6.68)% | |||||||
| I | 9/29/05 | (35.18)% | (5.73)% | |||||||
| R1 | 9/29/05 | (35.87)% | (6.76)% | |||||||
| R2 | 9/29/05 | (35.51)% | (6.31)% | |||||||
| R3 | 9/29/05 | (35.40)% | (6.09)% | |||||||
| R4 | 9/29/05 | (35.16)% | (5.81)% | |||||||
| Comparative benchmarks | ||||||||||
| Standard & Poor’s 500 Stock Index (f) | (35.31)% | (6.88)% | ||||||||
MFS Lifetime 2030 Fund Blend (f)* | (34.78)% | (5.64)% | ||||||||
| With sales charge | ||||||||||
A With Initial Sales Charge (5.75%) | (39.16)% | (7.62)% | ||||||||
B With CDSC (Declining over six years from 4% to 0%) (x) | (38.37)% | (7.41)% | ||||||||
C With CDSC (1% for 12 months) (x) | (36.44)% | (6.68)% | ||||||||
Class I, R1, R2, R3, R4 shares do not have a sales charge.
CDSC – Contingent Deferred Sales Charge.
| (f) | Source: FactSet Research Systems Inc. |
| (t) | For the period from the commencement of the fund’s investment operations, September 29, 2005, through the stated period end. |
| (x) | Assuming redemption at the end of the applicable period. |
| * | The weights of the components of the blended benchmark (MFS Lifetime 2030 Fund Blend) are designed to change systematically over time on a preset schedule. The table below depicts the individual component weights (in percent) at the beginning and at the end of the reporting period: |
| 4/30/09 | 4/30/08 | |||||||||
| Standard & Poor’s 500 Stock Index | 73.00% | 75.00% | ||||||||
| MSCI EAFE Index | 20.00% | 20.00% | ||||||||
| Barclays Capital U.S. Aggregate Bond Index | 7.00% | 5.00% | ||||||||
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Performance Summary – continued
MFS® Lifetime 2040 Fund
Growth of a hypothetical $10,000 investment (t)
Average annual total returns through 4/30/09
Without sales charge
| Share class | Class inception date | 1-yr | Life (t) | |||||||
| A | 9/29/05 | (37.10)% | (6.81)% | |||||||
| B | 9/29/05 | (37.50)% | (7.40)% | |||||||
| C | 9/29/05 | (37.46)% | (7.38)% | |||||||
| I | 9/29/05 | (36.88)% | (6.47)% | |||||||
| R1 | 9/29/05 | (37.53)% | (7.46)% | |||||||
| R2 | 9/29/05 | (37.14)% | (7.00)% | |||||||
| R3 | 9/29/05 | (37.01)% | (6.78)% | |||||||
| R4 | 9/29/05 | (36.82)% | (6.51)% | |||||||
| Comparative benchmarks | ||||||||||
| Standard & Poor’s 500 Stock Index (f) | (35.31)% | (6.88)% | ||||||||
| MFS Lifetime 2040 Fund Blend (f)* | (36.73)% | (6.51)% | ||||||||
| With sales charge | ||||||||||
A With Initial Sales Charge (5.75%) | (40.72)% | (8.34)% | ||||||||
B With CDSC (Declining over six years from 4% to 0%) (x) | (39.93)% | (8.11)% | ||||||||
C With CDSC (1% for 12 months) (x) | (38.07)% | (7.38)% | ||||||||
Class I, R1, R2, R3 and R4 shares do not have a sales charge.
CDSC – Contingent Deferred Sales Charge.
| (f) | Source: FactSet Research Systems Inc. |
| (t) | For the period from the commencement of the fund’s investment operations, September 29, 2005, through the stated period end. |
| (x) | Assuming redemption at the end of the applicable period. |
| * | The weights of the components of the blended benchmark (MFS Lifetime 2040 Fund Blend) are designed to change systematically over time on a preset schedule. The table below depicts the individual component weights (in percent) at the beginning and at the end of the reporting period: |
| 4/30/09 | 4/30/08 | |||||||||
| Standard & Poor’s 500 Stock Index | 80.00% | 80.00% | ||||||||
| MSCI EAFE Index | 20.00% | 20.00% | ||||||||
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Performance Summary – continued
Benchmark Definitions
Barclays Capital Three-Month U.S. Treasury Bill Index (formerly known as Lehman Brothers Three-Month U.S. Treasury Bill Index) – is comprised of the U.S. Treasury Bill issue with a remaining maturity closest to 3 months, as of the last day of each month. The return of this one issue over the course of a month will be the return for the US Treasury 3 Month Bellwether Index. The single-issue index will reset at the end of each month to include the specific US Treasury issue which closest meets the 3-month-to-maturity parameter.
Barclays Capital U.S. Aggregate Bond Index (formerly known as Lehman Brothers 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.
Morgan Stanley Capital International (MSCI) EAFE (Europe, Australasia, Far East) Index – a market capitalization-weighted index that is designed to measure equity market performance in the developed markets, excluding the U.S. and Canada.
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.
It is not possible to invest directly in an index.
Notes to Performance Summary
Performance results reflect any applicable expense subsidies and waivers in effect during the periods shown. Without such subsidies and waivers the funds’ performance results would be less favorable. Please see the prospectus and financial statements for complete details.
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Fund expenses borne by the shareholders during the period, November 1, 2008 through April 30, 2009
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 November 1, 2008 through April 30, 2009.
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.
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Expense Tables – continued
MFS LIFETIME RETIREMENT INCOME FUND
Share Class | Annualized Ratio | Beginning Account Value 11/01/08 | Ending Account Value | Expenses Paid During 11/01/08-4/30/09 | ||||||
| A | Actual | 0.41% | $1,000.00 | $1,052.72 | $2.09 | |||||
| Hypothetical (h) | 0.41% | $1,000.00 | $1,022.76 | $2.06 | ||||||
| B | Actual | 1.10% | $1,000.00 | $1,049.16 | $5.59 | |||||
| Hypothetical (h) | 1.10% | $1,000.00 | $1,019.34 | $5.51 | ||||||
| C | Actual | 1.10% | $1,000.00 | $1,047.97 | $5.59 | |||||
| Hypothetical (h) | 1.10% | $1,000.00 | $1,019.34 | $5.51 | ||||||
| I | Actual | 0.10% | $1,000.00 | $1,053.18 | $0.51 | |||||
| Hypothetical (h) | 0.10% | $1,000.00 | $1,024.30 | $0.50 | ||||||
| R1 | Actual | 1.10% | $1,000.00 | $1,049.14 | $5.59 | |||||
| Hypothetical (h) | 1.10% | $1,000.00 | $1,019.34 | $5.51 | ||||||
| R2 | Actual | 0.60% | $1,000.00 | $1,050.58 | $3.05 | |||||
| Hypothetical (h) | 0.60% | $1,000.00 | $1,021.82 | $3.01 | ||||||
| R3 | Actual | 0.35% | $1,000.00 | $1,051.91 | $1.78 | |||||
| Hypothetical (h) | 0.35% | $1,000.00 | $1,023.06 | $1.76 | ||||||
| R4 | Actual | 0.10% | $1,000.00 | $1,053.18 | $0.51 | |||||
| Hypothetical (h) | 0.10% | $1,000.00 | $1,024.30 | $0.50 |
| (h) | 5% class return per year before expenses. |
| (p) | Expenses paid is equal to each class’ annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by the number of days in the period, divided by the number of days in the year. Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
Expense Changes Impacting the Table
Changes to the fund’s fee arrangements occurred during the six month period. Had these fee changes been in effect throughout the entire six month period, the annualized expense ratio would have been 0.35% for Class A shares; the actual expenses paid during the period would have been approximately $1.78 for Class A shares; and the hypothetical expenses paid during the period would have been approximately $1.76 for Class A shares. For further information about the fund’s fee arrangements and changes to those fee arrangements, please see Note 3 in the Notes to Financial Statements.
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Expense Tables – continued
MFS LIFETIME 2010 FUND
Share Class | Annualized Ratio | Beginning Account Value 11/01/08 | Ending Account Value | Expenses Paid During 11/01/08-4/30/09 | ||||||
| A | Actual | 0.42% | $1,000.00 | $1,038.19 | $2.12 | |||||
| Hypothetical (h) | 0.42% | $1,000.00 | $1,022.71 | $2.11 | ||||||
| B | Actual | 1.10% | $1,000.00 | $1,034.84 | $5.55 | |||||
| Hypothetical (h) | 1.10% | $1,000.00 | $1,019.34 | $5.51 | ||||||
| C | Actual | 1.10% | $1,000.00 | $1,034.49 | $5.55 | |||||
| Hypothetical (h) | 1.10% | $1,000.00 | $1,019.34 | $5.51 | ||||||
| I | Actual | 0.10% | $1,000.00 | $1,039.47 | $0.51 | |||||
| Hypothetical (h) | 0.10% | $1,000.00 | $1,024.30 | $0.50 | ||||||
| R1 | Actual | 1.10% | $1,000.00 | $1,034.30 | $5.55 | |||||
| Hypothetical (h) | 1.10% | $1,000.00 | $1,019.34 | $5.51 | ||||||
| R2 | Actual | 0.60% | $1,000.00 | $1,037.12 | $3.03 | |||||
| Hypothetical (h) | 0.60% | $1,000.00 | $1,021.82 | $3.01 | ||||||
| R3 | Actual | 0.35% | $1,000.00 | $1,038.67 | $1.77 | |||||
| Hypothetical (h) | 0.35% | $1,000.00 | $1,023.06 | $1.76 | ||||||
| R4 | Actual | 0.10% | $1,000.00 | $1,039.51 | $0.51 | |||||
| Hypothetical (h) | 0.10% | $1,000.00 | $1,024.30 | $0.50 |
| (h) | 5% class return per year before expenses. |
| (p) | Expenses paid is equal to each class’ annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by the number of days in the period, divided by the number of days in the year. Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
Expense Changes Impacting the Table
Changes to the fund’s fee arrangements occurred during the six month period. Had these fee changes been in effect throughout the entire six month period, the annualized expense ratio would have been 0.35% for Class A shares; the actual expenses paid during the period would have been approximately $1.77 for Class A shares; and the hypothetical expenses paid during the period would have been approximately $1.76 for Class A shares. For further information about the fund’s fee arrangements and changes to those fee arrangements, please see Note 3 in the Notes to Financial Statements.
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Expense Tables – continued
MFS LIFETIME 2020 FUND
Share Class | Annualized Ratio | Beginning Account Value 11/01/08 | Ending Account Value | Expenses Paid During 11/01/08-4/30/09 | ||||||
| A | Actual | 0.42% | $1,000.00 | $987.04 | $2.07 | |||||
| Hypothetical (h) | 0.42% | $1,000.00 | $1,022.71 | $2.11 | ||||||
| B | Actual | 1.10% | $1,000.00 | $983.11 | $5.41 | |||||
| Hypothetical (h) | 1.10% | $1,000.00 | $1,019.34 | $5.51 | ||||||
| C | Actual | 1.10% | $1,000.00 | $983.18 | $5.41 | |||||
| Hypothetical (h) | 1.10% | $1,000.00 | $1,019.34 | $5.51 | ||||||
| I | Actual | 0.10% | $1,000.00 | $988.30 | $0.49 | |||||
| Hypothetical (h) | 0.10% | $1,000.00 | $1,024.30 | $0.50 | ||||||
| R1 | Actual | 1.10% | $1,000.00 | $982.73 | $5.41 | |||||
| Hypothetical (h) | 1.10% | $1,000.00 | $1,019.34 | $5.51 | ||||||
| R2 | Actual | 0.60% | $1,000.00 | $985.78 | $2.95 | |||||
| Hypothetical (h) | 0.60% | $1,000.00 | $1,021.82 | $3.01 | ||||||
| R3 | Actual | 0.35% | $1,000.00 | $986.08 | $1.72 | |||||
| Hypothetical (h) | 0.35% | $1,000.00 | $1,023.06 | $1.76 | ||||||
| R4 | Actual | 0.10% | $1,000.00 | $988.29 | $0.49 | |||||
| Hypothetical (h) | 0.10% | $1,000.00 | $1,024.30 | $0.50 |
| (h) | 5% class return per year before expenses. |
| (p) | Expenses paid is equal to each class’ annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by the number of days in the period, divided by the number of days in the year. Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
Expense Changes Impacting the Table
Changes to the fund’s fee arrangements occurred during the six month period. Had these fee changes been in effect throughout the entire six month period, the annualized expense ratio would have been 0.35% for Class A shares; the actual expenses paid during the period would have been approximately $1.72 for Class A shares; and the hypothetical expenses paid during the period would have been approximately $1.76 for Class A shares. For further information about the fund’s fee arrangements and changes to those fee arrangements, please see Note 3 in the Notes to Financial Statements.
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Expense Tables – continued
MFS LIFETIME 2030 FUND
Share Class | Annualized Ratio | Beginning Account Value 11/01/08 | Ending Account Value | Expenses Paid During 11/01/08-4/30/09 | ||||||
| A | Actual | 0.42% | $1,000.00 | $962.71 | $2.04 | |||||
| Hypothetical (h) | 0.42% | $1,000.00 | $1,022.71 | $2.11 | ||||||
| B | Actual | 1.10% | $1,000.00 | $959.99 | $5.35 | |||||
| Hypothetical (h) | 1.10% | $1,000.00 | $1,019.34 | $5.51 | ||||||
| C | Actual | 1.10% | $1,000.00 | $960.17 | $5.35 | |||||
| Hypothetical (h) | 1.10% | $1,000.00 | $1,019.34 | $5.51 | ||||||
| I | Actual | 0.10% | $1,000.00 | $966.01 | $0.49 | |||||
| Hypothetical (h) | 0.10% | $1,000.00 | $1,024.30 | $0.50 | ||||||
| R1 | Actual | 1.10% | $1,000.00 | $960.21 | $5.35 | |||||
| Hypothetical (h) | 1.10% | $1,000.00 | $1,019.34 | $5.51 | ||||||
| R2 | Actual | 0.60% | $1,000.00 | $963.14 | $2.92 | |||||
| Hypothetical (h) | 0.60% | $1,000.00 | $1,021.82 | $3.01 | ||||||
| R3 | Actual | 0.35% | $1,000.00 | $963.91 | $1.70 | |||||
| Hypothetical (h) | 0.35% | $1,000.00 | $1,023.06 | $1.76 | ||||||
| R4 | Actual | 0.10% | $1,000.00 | $964.65 | $0.49 | |||||
| Hypothetical (h) | 0.10% | $1,000.00 | $1,024.30 | $0.50 |
| (h) | 5% class return per year before expenses. |
| (p) | Expenses paid is equal to each class’ annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by the number of days in the period, divided by the number of days in the year. Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
Expense Changes Impacting the Table
Changes to the fund’s fee arrangements occurred during the six month period. Had these fee changes been in effect throughout the entire six month period, the annualized expense ratio would have been 0.35% for Class A shares; the actual expenses paid during the period would have been approximately $1.70 for Class A shares; and the hypothetical expenses paid during the period would have been approximately $1.76 for Class A shares. For further information about the fund’s fee arrangements and changes to those fee arrangements, please see Note 3 in the Notes to Financial Statements.
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Expense Tables – continued
MFS LIFETIME 2040 FUND
Share Class | Annualized Ratio | Beginning Account Value 11/01/08 | Ending Account Value | Expenses Paid During 11/01/08-4/30/09 | ||||||
| A | Actual | 0.41% | $1,000.00 | $956.04 | $1.99 | |||||
| Hypothetical (h) | 0.41% | $1,000.00 | $1,022.76 | $2.06 | ||||||
| B | Actual | 1.10% | $1,000.00 | $952.31 | $5.32 | |||||
| Hypothetical (h) | 1.10% | $1,000.00 | $1,019.34 | $5.51 | ||||||
| C | Actual | 1.09% | $1,000.00 | $954.18 | $5.28 | |||||
| Hypothetical (h) | 1.09% | $1,000.00 | $1,019.39 | $5.46 | ||||||
| I | Actual | 0.10% | $1,000.00 | $957.32 | $0.49 | |||||
| Hypothetical (h) | 0.10% | $1,000.00 | $1,024.30 | $0.50 | ||||||
| R1 | Actual | 1.10% | $1,000.00 | $953.06 | $5.33 | |||||
| Hypothetical (h) | 1.10% | $1,000.00 | $1,019.34 | $5.51 | ||||||
| R2 | Actual | 0.60% | $1,000.00 | $955.09 | $2.91 | |||||
| Hypothetical (h) | 0.60% | $1,000.00 | $1,021.82 | $3.01 | ||||||
| R3 | Actual | 0.35% | $1,000.00 | $956.58 | $1.70 | |||||
| Hypothetical (h) | 0.35% | $1,000.00 | $1,023.06 | $1.76 | ||||||
| R4 | Actual | 0.10% | $1,000.00 | $958.59 | $0.49 | |||||
| Hypothetical (h) | 0.10% | $1,000.00 | $1,024.30 | $0.50 |
| (h) | 5% class return per year before expenses. |
| (p) | Expenses paid is equal to each class’ annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by the number of days in the period, divided by the number of days in the year. Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
Expense Changes Impacting the Table
Changes to the fund’s fee arrangements occurred during the six month period. Had these fee changes been in effect throughout the entire six month period, the annualized expense ratio would have been 0.35% for Class A shares; the actual expenses paid during the period would have been approximately $1.70 for Class A shares; and the hypothetical expenses paid during the period would have been approximately $1.76 for Class A shares. For further information about the fund’s fee arrangements and changes to those fee arrangements, please see Note 3 in the Notes to Financial Statements.
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4/30/09
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
MFS LIFETIME RETIREMENT INCOME FUND
| Mutual Funds - 99.8% | ||||||
| Issuer | Shares/Par | Value ($) | ||||
| MFS Core Growth Fund - Class I | 32,601 | $ | 426,749 | |||
| MFS Diversified Target Return Fund - Class I | 56,425 | 432,213 | ||||
| MFS Emerging Markets Debt Fund - Class I | 52,538 | 634,661 | ||||
| MFS Global Real Estate Fund - Class I (a) | 16,445 | 218,724 | ||||
| MFS Government Securities Fund - Class I | 209,004 | 2,096,314 | ||||
| MFS High Income Fund - Class I | 248,694 | 649,092 | ||||
| MFS Inflation-Adjusted Bond Fund - Class I | 217,037 | 2,079,210 | ||||
| MFS International Growth Fund - Class I | 12,939 | 217,503 | ||||
| MFS International Value Fund - Class I | 12,078 | 217,525 | ||||
| MFS Limited Maturity Fund - Class I | 717,177 | 4,217,003 | ||||
| MFS Mid Cap Growth Fund - Class I (a) | 117,813 | 644,435 | ||||
| MFS Mid Cap Value Fund - Class I | 82,206 | 646,142 | ||||
| MFS New Discovery Fund - Class I (a) | 32,305 | 437,415 | ||||
| MFS Research Bond Fund - Class I | 586,886 | 5,276,103 | ||||
| MFS Research Fund - Class I | 111,658 | 1,931,675 | ||||
| MFS Research International Fund - Class I | 61,451 | 652,614 | ||||
| MFS Value Fund - Class I | 25,534 | 426,162 | ||||
| Total Mutual Funds (Identified Cost, $20,795,418) | $ | 21,203,540 | ||||
| Repurchase Agreements - 0.2% | ||||||
| Goldman Sachs, 0.16%, dated 4/30/09, due 5/01/09, total to be received $48,000.21 (secured by U.S. Treasury and Federal Agency obligations and Mortgage Backed securities valued at $48,960 in a jointly traded account), at Cost | $ | 48,000 | $ | 48,000 | ||
| Total Investments (Identified Cost, $20,843,418) | $ | 21,251,540 | ||||
| Other Assets, Less Liabilities - (0.0)% | (6,121) | |||||
| Net Assets - 100.0% | $ | 21,245,419 | ||||
| MFS LIFETIME 2010 FUND | ||||||
| Mutual Funds - 99.9% | ||||||
| Issuer | Shares/Par | Value ($) | ||||
| MFS Core Growth Fund - Class I | 74,186 | $ | 971,091 | |||
| MFS Diversified Target Return Fund - Class I | 82,390 | 631,104 | ||||
| MFS Emerging Markets Debt Fund - Class I | 91,348 | 1,103,478 | ||||
| MFS Global Real Estate Fund - Class I (a) | 24,718 | 328,751 | ||||
| MFS Government Securities Fund - Class I | 305,589 | 3,065,053 | ||||
| MFS High Income Fund - Class I | 432,708 | 1,129,368 | ||||
| MFS Inflation-Adjusted Bond Fund - Class I | 317,968 | 3,046,130 | ||||
| MFS International Growth Fund - Class I | 24,135 | 405,712 | ||||
| MFS International Value Fund - Class I | 22,451 | 404,336 | ||||
| MFS Limited Maturity Fund - Class I | 900,222 | 5,293,308 | ||||
| MFS Mid Cap Growth Fund - Class I (a) | 188,457 | 1,030,859 | ||||
| MFS Mid Cap Value Fund - Class I | 132,218 | 1,039,233 | ||||
| MFS New Discovery Fund - Class I (a) | 47,724 | 646,185 | ||||
| MFS Research Bond Fund - Class I | 811,130 | 7,292,061 | ||||
| MFS Research Fund - Class I | 152,523 | 2,638,654 | ||||
| MFS Research International Fund - Class I | 97,710 | 1,037,684 | ||||
| MFS Value Fund - Class I | 58,372 | 974,230 | ||||
| Total Mutual Funds (Identified Cost, $30,932,301) | $ | 31,037,237 | ||||
| Other Assets, Less Liabilities - 0.1% | 37,140 | |||||
| Net Assets - 100.0% | $ | 31,074,377 | ||||
See Portfolio Footnotes and Notes to Financial Statements
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Portfolio of Investments – continued
MFS LIFETIME 2020 FUND
| Mutual Funds - 99.8% | ||||||
| Issuer | Shares/Par | Value ($) | ||||
| MFS Core Growth Fund - Class I | 508,219 | $ | 6,652,586 | |||
| MFS Diversified Target Return Fund - Class I | 89,277 | 683,865 | ||||
| MFS Emerging Markets Debt Fund - Class I | 277,080 | 3,347,125 | ||||
| MFS Emerging Markets Equity Fund - Class I | 10,373 | 202,686 | ||||
| MFS Global Real Estate Fund - Class I (a) | 114,985 | 1,529,302 | ||||
| MFS Government Securities Fund - Class I | 479,311 | 4,807,484 | ||||
| MFS High Income Fund - Class I | 1,315,581 | 3,433,666 | ||||
| MFS Inflation-Adjusted Bond Fund - Class I | 345,636 | 3,311,189 | ||||
| MFS International Growth Fund - Class I | 140,564 | 2,362,882 | ||||
| MFS International New Discovery Fund - Class I | 67,041 | 876,896 | ||||
| MFS International Value Fund - Class I | 131,912 | 2,375,734 | ||||
| MFS Mid Cap Growth Fund - Class I (a) | 920,856 | 5,037,083 | ||||
| MFS Mid Cap Value Fund - Class I | 642,830 | 5,052,646 | ||||
| MFS New Discovery Fund - Class I (a) | 165,365 | 2,239,039 | ||||
| MFS Research Bond Fund - Class I | 912,796 | 8,206,035 | ||||
| MFS Research Fund - Class I | 350,573 | 6,064,905 | ||||
| MFS Research International Fund - Class I | 419,832 | 4,458,620 | ||||
| MFS Value Fund - Class I | 398,269 | 6,647,107 | ||||
| Total Mutual Funds (Identified Cost, $83,201,966) | $ | 67,288,850 | ||||
| Other Assets, Less Liabilities - 0.2% | 104,621 | |||||
| Net Assets - 100.0% | $ | 67,393,471 | ||||
| MFS LIFETIME 2030 FUND | ||||||
| Mutual Funds - 99.8% | ||||||
| Issuer | Shares/Par | Value ($) | ||||
| MFS Core Growth Fund - Class I | 394,106 | $ | 5,158,845 | |||
| MFS Diversified Target Return Fund - Class I | 21,818 | 167,127 | ||||
| MFS Emerging Markets Debt Fund - Class I | 60,916 | 735,860 | ||||
| MFS Emerging Markets Equity Fund - Class I | 34,040 | 665,142 | ||||
| MFS Global Real Estate Fund - Class I | 133,241 | 1,772,111 | ||||
| MFS High Income Fund - Class I | 289,246 | 754,931 | ||||
| MFS Inflation-Adjusted Bond Fund - Class I | 143,736 | 1,376,995 | ||||
| MFS International Growth Fund - Class I | 154,524 | 2,597,548 | ||||
| MFS International New Discovery Fund - Class I | 104,186 | 1,362,750 | ||||
| MFS International Value Fund - Class I | 144,576 | 2,603,814 | ||||
| MFS Mid Cap Growth Fund - Class I (a) | 771,916 | 4,222,380 | ||||
| MFS Mid Cap Value Fund - Class I | 538,709 | 4,234,250 | ||||
| MFS New Discovery Fund - Class I (a) | 141,057 | 1,909,909 | ||||
| MFS Research Bond Fund - Class I | 155,282 | 1,395,981 | ||||
| MFS Research Fund - Class I | 213,597 | 3,695,230 | ||||
| MFS Research International Fund - Class I | 310,837 | 3,301,089 | ||||
| MFS Value Fund - Class I | 308,856 | 5,154,805 | ||||
| Total Mutual Funds (Identified Cost, $53,102,028) | $ | 41,108,767 | ||||
| Repurchase Agreements - 0.3% | ||||||
| Goldman Sachs, 0.16%, dated 4/30/09, due 5/01/09, total to be received $106,000.47 (secured by U.S. Treasury and Federal Agency obligations and Mortgage Backed securities valued at $108,120 in a jointly traded account), at Cost | $ | 106,000 | $ | 106,000 | ||
| Total Investments (Identified Cost, $53,208,028) | $ | 41,214,767 | ||||
| Other Assets, Less Liabilities - (0.1)% | (24,850) | |||||
| Net Assets - 100.0% | $ | 41,189,917 | ||||
See Portfolio Footnotes and Notes to Financial Statements
20
Table of Contents
Portfolio of Investments – continued
MFS LIFETIME 2040 FUND
| Mutual Funds - 99.8% | ||||||
| Issuer | Shares/Par | Value ($) | ||||
| MFS Core Growth Fund - Class I | 260,082 | $ | 3,404,478 | |||
| MFS Emerging Markets Equity Fund - Class I | 27,028 | 528,126 | ||||
| MFS Global Real Estate Fund - Class I (a) | 98,060 | 1,304,199 | ||||
| MFS Inflation-Adjusted Bond Fund - Class I | 67,617 | 647,773 | ||||
| MFS International Growth Fund - Class I | 109,590 | 1,842,201 | ||||
| MFS International New Discovery Fund - Class I | 80,504 | 1,052,993 | ||||
| MFS International Value Fund - Class I | 102,819 | 1,851,771 | ||||
| MFS Mid Cap Growth Fund - Class I (a) | 526,880 | 2,882,036 | ||||
| MFS Mid Cap Value Fund - Class I | 367,549 | 2,888,939 | ||||
| MFS New Discovery Fund - Class I (a) | 97,818 | 1,324,461 | ||||
| MFS Research Bond Fund - Class I | 72,788 | 654,366 | ||||
| MFS Research Fund - Class I | 136,623 | 2,363,584 | ||||
| MFS Research International Fund - Class I | 198,424 | 2,107,262 | ||||
| MFS Value Fund - Class I | 203,867 | 3,402,533 | ||||
| Total Mutual Funds (Identified Cost, $33,491,964) | $ | 26,254,722 | ||||
| Repurchase Agreements - 0.1% | ||||||
| Goldman Sachs, 0.16%, dated 4/30/09, due 5/01/09, total to be received $39,000.17 (secured by U.S. Treasury and Federal Agency obligations and Mortgage Backed securities valued at $39,780 in a jointly traded account), at Cost | $ | 39,000 | $ | 39,000 | ||
| Total Investments (Identified Cost, $33,530,964) | $ | 26,293,722 | ||||
| Other Assets, Less Liabilities - 0.1% | 13,399 | |||||
| Net Assets - 100.0% | $ | 26,307,121 | ||||
Portfolio Footnotes:
| (a) | Non-income producing security. |
See Notes to Financial Statements
21
Table of Contents
Financial Statements
STATEMENTS OF ASSETS AND LIABILITIES
At 4/30/09
These statements represent each fund’s balance sheet, which details the assets and liabilities comprising the total value of each fund.
| Lifetime Retirement Income Fund | Lifetime 2010 Fund | Lifetime 2020 Fund | Lifetime 2030 Fund | Lifetime 2040 Fund | |||||||||||
| Assets | |||||||||||||||
| Investments – | |||||||||||||||
Underlying Funds, at value (Identified cost, $20,795,418, $30,932,301, $83,201,966, $53,102,028, and $33,491,964 respectively) | $21,203,540 | $31,037,237 | $67,288,850 | $41,108,767 | $26,254,722 | ||||||||||
Repurchase agreements, at value | 48,000 | — | — | 106,000 | 39,000 | ||||||||||
| Total investments, at value (identified cost, $20,843,418, $30,932,301, $83,201,966, $53,208,028, and $33,530,964 respectively) | $21,251,540 | $31,037,237 | $67,288,850 | $41,214,767 | $26,293,722 | ||||||||||
Cash | 807 | — | — | 940 | 602 | ||||||||||
Receivables for | |||||||||||||||
Investments sold | — | 99,189 | 98,259 | — | 11,290 | ||||||||||
Fund shares sold | 94,385 | 94,243 | 175,056 | 150,754 | 80,314 | ||||||||||
Dividends | 60,108 | 85,282 | 99,332 | 14,562 | 1,327 | ||||||||||
Receivable from investment adviser | 20,239 | 22,095 | 16,560 | 21,577 | 21,844 | ||||||||||
Other assets | 471 | 705 | 1,248 | 825 | 633 | ||||||||||
Total assets | $21,427,550 | $31,338,751 | $67,679,305 | $41,403,425 | $26,409,732 | ||||||||||
| Liabilities | |||||||||||||||
| Payable to custodian | $— | $62,299 | $86,896 | $— | $— | ||||||||||
| Payables for | |||||||||||||||
Distributions | 4,553 | — | — | — | — | ||||||||||
Investments purchased | 124,152 | 157,619 | 151,531 | 159,492 | 44,901 | ||||||||||
Fund shares reacquired | 15,001 | 7,577 | 5,358 | 14,163 | 20,304 | ||||||||||
| Payable to affiliates | |||||||||||||||
Shareholder servicing costs | 260 | 238 | 101 | 356 | 283 | ||||||||||
Distribution and service fees | 565 | 863 | 1,845 | 1,070 | 698 | ||||||||||
Administrative services fee | 96 | 96 | 96 | 96 | 96 | ||||||||||
Accrued expenses and other liabilities | 37,504 | 35,682 | 40,007 | 38,331 | 36,329 | ||||||||||
Total liabilities | $182,131 | $264,374 | $285,834 | $213,508 | $102,611 | ||||||||||
Net assets | $21,245,419 | $31,074,377 | $67,393,471 | $41,189,917 | $26,307,121 | ||||||||||
| Net assets consist of | |||||||||||||||
| Paid-in capital | $23,362,111 | $35,148,248 | $92,868,298 | $62,621,351 | $39,114,613 | ||||||||||
| Unrealized appreciation (depreciation) on investments | 408,122 | 104,936 | (15,913,116 | ) | (11,993,261 | ) | (7,237,242 | ) | |||||||
| Accumulated net realized gain (loss) on investments | (2,516,127 | ) | (4,486,226 | ) | (9,956,002 | ) | (9,438,173 | ) | (5,570,250 | ) | |||||
Accumulated undistributed (distributions in excess of) net investment income | (8,687 | ) | 307,419 | 394,291 | — | — | |||||||||
Net assets | $21,245,419 | $31,074,377 | $67,393,471 | $41,189,917 | $26,307,121 | ||||||||||
22
Table of Contents
Statements of Assets and Liabilities – continued
| Lifetime Retirement Income Fund | Lifetime 2010 Fund | Lifetime 2020 Fund | Lifetime 2030 Fund | Lifetime 2040 Fund | ||||||
Net assets | ||||||||||
| Class A | $4,939,766 | $6,136,110 | $10,928,342 | $4,633,592 | $3,120,728 | |||||
| Class B | 1,377,105 | 1,762,166 | 3,175,927 | 1,735,301 | 1,071,963 | |||||
| Class C | 2,808,238 | 2,138,103 | 3,035,967 | 981,291 | 858,564 | |||||
| Class I | 198,123 | 369,808 | 645,194 | 1,149,063 | 1,225,318 | |||||
| Class R1 | 691,287 | 2,636,080 | 6,757,338 | 3,717,101 | 2,367,949 | |||||
| Class R2 | 6,101,714 | 13,265,896 | 31,030,081 | 20,269,155 | 14,024,336 | |||||
| Class R3 | 5,071,408 | 4,658,340 | 11,616,193 | 8,596,855 | 3,507,102 | |||||
Class R4 | 57,778 | 107,874 | 204,429 | 107,559 | 131,161 | |||||
Total net assets | $21,245,419 | $31,074,377 | $67,393,471 | $41,189,917 | $26,307,121 | |||||
Shares of beneficial interest outstanding | ||||||||||
| Class A | 549,163 | 645,189 | 1,371,795 | 654,019 | 452,001 | |||||
| Class B | 153,019 | 186,601 | 400,880 | 246,673 | 155,770 | |||||
| Class C | 312,057 | 227,526 | 385,185 | 139,603 | 125,409 | |||||
| Class I | 22,008 | 38,746 | 80,670 | 161,680 | 176,790 | |||||
| Class R1 | 76,768 | 280,772 | 855,328 | 528,383 | 346,069 | |||||
| Class R2 | 677,932 | 1,404,220 | 3,914,889 | 2,879,133 | 2,041,681 | |||||
| Class R3 | 563,824 | 490,040 | 1,457,347 | 1,215,520 | 508,259 | |||||
Class R4 | 6,416 | 11,316 | 25,577 | 15,148 | 18,935 | |||||
Total shares of beneficial interest outstanding | 2,361,187 | 3,284,410 | 8,491,671 | 5,840,159 | 3,824,914 | |||||
Class A shares Net asset value per share | $9.00 | $9.51 | $7.97 | $7.08 | $6.90 | |||||
Offering price per share (100/94.25 × net asset value per share) | $9.55 | $10.09 | $8.46 | $7.51 | $7.32 | |||||
Class B shares Net asset value and offering price per share | $9.00 | $9.44 | $7.92 | $7.03 | $6.88 | |||||
Class C shares Net asset value and offering price per share | $9.00 | $9.40 | $7.88 | $7.03 | $6.85 | |||||
Class I shares Net asset value, offering price, and redemption price per share | $9.00 | $9.54 | $8.00 | $7.11 | $6.93 | |||||
Class R1 shares Net asset value, offering price, and redemption price per share | $9.01 | $9.39 | $7.90 | $7.03 | $6.84 | |||||
Class R2 shares Net asset value, offering price, and redemption price per share | $9.00 | $9.45 | $7.93 | $7.04 | $6.87 | |||||
Class R3 shares Net asset value, offering price, and redemption price per share | $8.99 | $9.51 | $7.97 | $7.07 | $6.90 | |||||
Class R4 shares Net asset value, offering price, and redemption price per share | $9.00 | $9.53 | $7.99 | $7.10 | $6.93 | |||||
Shares outstanding are rounded for presentation purposes.
On sales of $50,000 or more, the offering price of Class A shares is reduced. A contingent deferred sales charge may be imposed on redemptions of Class A, Class B, and Class C shares.
See Notes to Financial Statements
23
Table of Contents
Financial Statements
Year ended 4/30/09
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.
| Lifetime Retirement Income Fund | Lifetime 2010 Fund | Lifetime 2020 Fund | Lifetime 2030 Fund | Lifetime 2040 Fund | |||||||||||
| Net investment income | |||||||||||||||
| Dividends from underlying funds | $769,305 | $1,128,442 | $1,886,695 | $609,480 | $274,749 | ||||||||||
Interest | 594 | 1,740 | 3,287 | 1,988 | 1,929 | ||||||||||
Total investment income | $769,899 | $1,130,182 | $1,889,982 | $611,468 | $276,678 | ||||||||||
| Expenses | |||||||||||||||
Distribution and service fees | $88,654 | $148,905 | $354,960 | $206,419 | $120,774 | ||||||||||
Shareholder servicing costs | 18 | 22 | 73 | 74 | 82 | ||||||||||
Administrative services fee | 17,500 | 17,500 | 17,500 | 17,500 | 17,500 | ||||||||||
Independent trustees’ compensation | 1,488 | 1,554 | 3,557 | 1,629 | 1,527 | ||||||||||
Custodian fee | 13,838 | 7,331 | 13,343 | 10,085 | 7,752 | ||||||||||
Shareholder communications | 6,030 | 9,948 | 9,914 | 10,246 | 9,703 | ||||||||||
Auditing fees | 30,638 | 30,638 | 30,638 | 30,638 | 30,638 | ||||||||||
Legal fees | 1,626 | 2,440 | 3,600 | 2,587 | 2,453 | ||||||||||
Registration fees | 81,482 | 82,690 | 88,553 | 84,929 | 82,911 | ||||||||||
Miscellaneous | 13,168 | 13,415 | 15,383 | 14,330 | 13,156 | ||||||||||
Total expenses | $254,442 | $314,443 | $537,521 | $378,437 | $286,496 | ||||||||||
Fees paid indirectly | (11 | ) | — | — | (10 | ) | (57 | ) | |||||||
Reduction of expenses by investment adviser | (147,220 | ) | (135,715 | ) | (113,105 | ) | (129,536 | ) | (140,992 | ) | |||||
Net expenses | $107,211 | $178,728 | $424,416 | $248,891 | $145,447 | ||||||||||
Net investment income | $662,688 | $951,454 | $1,465,566 | $362,577 | $131,231 | ||||||||||
| Realized and unrealized gain (loss) on investments | |||||||||||||||
| Realized gain (loss) (identified cost basis) | |||||||||||||||
Investment transactions from underlying funds | $(2,409,056 | ) | $(4,388,043 | ) | $(10,041,968 | ) | $(9,506,854 | ) | $(5,660,430 | ) | |||||
Capital gain distributions from underlying funds | — | 48,048 | 719,920 | 800,110 | 490,144 | ||||||||||
Net realized gain (loss) on investments | $(2,409,056 | ) | $(4,339,995 | ) | $(9,322,048 | ) | $(8,706,744 | ) | $(5,170,286 | ) | |||||
Change in unrealized appreciation (depreciation) | $584,847 | $261,038 | $(14,965,642 | ) | $(10,736,593 | ) | $(6,557,411 | ) | |||||||
Net realized and unrealized gain (loss) on investments | $(1,824,209 | ) | $(4,078,957 | ) | $(24,287,690 | ) | $(19,443,337 | ) | $(11,727,697 | ) | |||||
Change in net assets from operations | $(1,161,521 | ) | $(3,127,503 | ) | $(22,822,124 | ) | $(19,080,760 | ) | $(11,596,466 | ) | |||||
See Notes to Financial Statements
24
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 4/30/09 | Lifetime Retirement Income Fund | Lifetime 2010 Fund | Lifetime 2020 Fund | Lifetime 2030 Fund | Lifetime 2040 Fund | ||||||||||
| Change in net assets | |||||||||||||||
| From operations | |||||||||||||||
| Net investment income | $662,688 | $951,454 | $1,465,566 | $362,577 | $131,231 | ||||||||||
Net realized gain (loss) on investments | (2,409,056 | ) | (4,339,995 | ) | (9,322,048 | ) | (8,706,744 | ) | (5,170,286 | ) | |||||
Net unrealized gain (loss) on investments | 584,847 | 261,038 | (14,965,642 | ) | (10,736,593 | ) | (6,557,411 | ) | |||||||
Change in net assets from operations | $(1,161,521 | ) | $(3,127,503 | ) | $(22,822,124 | ) | $(19,080,760 | ) | $(11,596,466 | ) | |||||
| Distributions declared to shareholders | |||||||||||||||
| From net investment income | $(669,090 | ) | $(1,007,071 | ) | $(1,886,907 | ) | $(792,773 | ) | $(438,513 | ) | |||||
From net realized gain on investments | (87,082 | ) | (41,666 | ) | (479,310 | ) | (576,278 | ) | (307,339 | ) | |||||
Total distributions declared to shareholders | $(756,172 | ) | $(1,048,737 | ) | $(2,366,217 | ) | $(1,369,051 | ) | $(745,852 | ) | |||||
Change in net assets from fund share transactions | $4,819,749 | $4,893,732 | $15,852,632 | $9,986,843 | $10,525,780 | ||||||||||
Total change in net assets | $2,902,056 | $717,492 | $(9,335,709 | ) | $(10,462,968 | ) | $(1,816,538 | ) | |||||||
| Net assets | |||||||||||||||
| At beginning of period | 18,343,363 | 30,356,885 | 76,729,180 | 51,652,885 | 28,123,659 | ||||||||||
At end of period | $21,245,419 | $31,074,377 | $67,393,471 | $41,189,917 | $26,307,121 | ||||||||||
Accumulated undistributed (distributions in excess of) net | $(8,687 | ) | $307,419 | $394,291 | $— | $— | |||||||||
| Year ended 4/30/08 | Lifetime Retirement Income Fund | Lifetime 2010 Fund | Lifetime 2020 Fund | Lifetime 2030 Fund | Lifetime 2040 Fund | ||||||||||
| Change in net assets | |||||||||||||||
| From operations | |||||||||||||||
| Net investment income | $545,136 | $709,412 | $986,563 | $186,152 | $47,402 | ||||||||||
Net realized gain (loss) on investments | 215,500 | 376,912 | 2,637,028 | 2,336,462 | 1,346,237 | ||||||||||
Net unrealized gain (loss) on investments | (353,784 | ) | (609,242 | ) | (3,706,472 | ) | (3,357,281 | ) | (1,861,135 | ) | |||||
Change in net assets from operations | $406,852 | $477,082 | $(82,881 | ) | $(834,667 | ) | $(467,496 | ) | |||||||
| Distributions declared to shareholders | |||||||||||||||
| From net investment income | $(557,523 | ) | $(532,329 | ) | $(1,272,073 | ) | $(666,969 | ) | $(323,070 | ) | |||||
From net realized gain on investments | (203,236 | ) | (340,812 | ) | (1,801,783 | ) | (1,626,250 | ) | (922,705 | ) | |||||
Total distributions declared to shareholders | $(760,759 | ) | $(873,141 | ) | $(3,073,856 | ) | $(2,293,219 | ) | $(1,245,775 | ) | |||||
Change in net assets from fund share transactions | $11,740,556 | $16,740,424 | $39,482,978 | $30,289,159 | $16,501,449 | ||||||||||
Total change in net assets | $11,386,649 | $16,344,365 | $36,326,241 | $27,161,273 | $14,788,178 | ||||||||||
| Net assets | |||||||||||||||
| At beginning of period | 6,956,714 | 14,012,520 | 40,402,939 | 24,491,612 | 13,335,481 | ||||||||||
At end of period | $18,343,363 | $30,356,885 | $76,729,180 | $51,652,885 | $28,123,659 | ||||||||||
Accumulated undistributed (distributions in excess of) net | $(1,793 | ) | $334,482 | $447,038 | $41,492 | $8,892 | |||||||||
See Notes to Financial Statements
25
Table of Contents
Financial Statements
MFS LIFETIME RETIREMENT INCOME FUND
The financial highlights table is intended to help you understand the fund financial performance for the past 5 years (or life of a particular share class, if shorter). Certain information reflects financial results for a single fund share. The total returns in the table represent the rate by which 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.
| Years ended 4/30 | ||||||||||||
| Class A | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $10.09 | $10.36 | $10.00 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (d) | $0.34 | $0.40 | $0.39 | $0.24 | ||||||||
Net realized and unrealized gain (loss) on investments | (1.04 | ) | (0.13 | ) | 0.36 | (0.02 | )(g) | |||||
Total from investment operations | $(0.70 | ) | $0.27 | $0.75 | $0.22 | |||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.35 | ) | $(0.42 | ) | $(0.38 | ) | $(0.22 | ) | ||||
From net realized gain on investments | (0.04 | ) | (0.12 | ) | (0.01 | ) | — | |||||
Total distributions declared to shareholders | $(0.39 | ) | $(0.54 | ) | $(0.39 | ) | $(0.22 | ) | ||||
Net asset value, end of period | $9.00 | $10.09 | $10.36 | $10.00 | ||||||||
Total return (%) (r)(s)(t) | (6.90 | ) | 2.67 | 7.67 | 2.27 | (n) | ||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 1.23 | 1.61 | 3.79 | 14.17 | (a) | |||||||
Expenses after expense reductions (f)(h) | 0.43 | 0.46 | 0.45 | 0.45 | (a) | |||||||
Net investment income | 3.72 | 4.01 | 3.79 | 3.87 | (a) | |||||||
Portfolio turnover | 58 | 61 | 22 | 14 | ||||||||
Net assets at end of period (000 Omitted) | $4,940 | $3,397 | $1,954 | $724 | ||||||||
| Years ended 4/30 | ||||||||||||
| Class B | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $10.09 | $10.36 | $10.00 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (d) | $0.28 | $0.35 | $0.32 | $0.20 | ||||||||
Net realized and unrealized gain (loss) on investments | (1.05 | ) | (0.15 | ) | 0.37 | (0.01 | )(g) | |||||
Total from investment operations | $(0.77 | ) | $0.20 | $0.69 | $0.19 | |||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.28 | ) | $(0.35 | ) | $(0.32 | ) | $(0.19 | ) | ||||
From net realized gain on investments | (0.04 | ) | (0.12 | ) | (0.01 | ) | — | |||||
Total distributions declared to shareholders | $(0.32 | ) | $(0.47 | ) | $(0.33 | ) | $(0.19 | ) | ||||
Net asset value, end of period | $9.00 | $10.09 | $10.36 | $10.00 | ||||||||
Total return (%) (r)(s)(t) | (7.52 | ) | 2.01 | 6.98 | 1.88 | (n) | ||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 1.91 | 2.28 | 4.46 | 14.82 | (a) | |||||||
Expenses after expense reductions (f)(h) | 1.10 | 1.11 | 1.10 | 1.10 | (a) | |||||||
Net investment income | 3.11 | 3.41 | 3.14 | 3.21 | (a) | |||||||
Portfolio turnover | 58 | 61 | 22 | 14 | ||||||||
Net assets at end of period (000 Omitted) | $1,377 | $771 | $630 | $367 | ||||||||
See Notes to Financial Statements
26
Table of Contents
Financial Highlights – continued
MFS LIFETIME RETIREMENT INCOME FUND – continued
| Years ended 4/30 | ||||||||||||
| Class C | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $10.10 | $10.36 | $10.00 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (d) | $0.29 | $0.35 | $0.31 | $0.19 | ||||||||
Net realized and unrealized gain (loss) on investments | (1.07 | ) | (0.14 | ) | 0.38 | 0.00 | (w) | |||||
Total from investment operations | $(0.78 | ) | $0.21 | $0.69 | $0.19 | |||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.28 | ) | $(0.35 | ) | $(0.32 | ) | $(0.19 | ) | ||||
From net realized gain on investments | (0.04 | ) | (0.12 | ) | (0.01 | ) | — | |||||
Total distributions declared to shareholders | $(0.32 | ) | $(0.47 | ) | $(0.33 | ) | $(0.19 | ) | ||||
Net asset value, end of period | $9.00 | $10.10 | $10.36 | $10.00 | ||||||||
Total return (%) (r)(s)(t) | (7.61 | ) | 2.11 | 6.98 | 1.88 | (n) | ||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 1.88 | 2.28 | 4.35 | 14.82 | (a) | |||||||
Expenses after expense reductions (f)(h) | 1.10 | 1.11 | 1.10 | 1.10 | (a) | |||||||
Net investment income | 3.20 | 3.40 | 3.09 | 3.14 | (a) | |||||||
Portfolio turnover | 58 | 61 | 22 | 14 | ||||||||
Net assets at end of period (000 Omitted) | $2,808 | $1,034 | $778 | $379 | ||||||||
| Years ended 4/30 | ||||||||||||
| Class I | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $10.10 | $10.36 | $10.00 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (d) | $0.37 | $0.40 | $0.41 | $0.25 | ||||||||
Net realized and unrealized gain (loss) on investments | (1.05 | ) | (0.08 | ) | 0.38 | (0.01 | )(g) | |||||
Total from investment operations | $(0.68 | ) | $0.32 | $0.79 | $0.24 | |||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.38 | ) | $(0.46 | ) | $(0.42 | ) | $(0.24 | ) | ||||
From net realized gain on investments | (0.04 | ) | (0.12 | ) | (0.01 | ) | — | |||||
Total distributions declared to shareholders | $(0.42 | ) | $(0.58 | ) | $(0.43 | ) | $(0.24 | ) | ||||
Net asset value, end of period | $9.00 | $10.10 | $10.36 | $10.00 | ||||||||
Total return (%) (r)(s) | (6.68 | ) | 3.14 | 8.04 | 2.48 | (n) | ||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 0.90 | 1.17 | 3.50 | 13.82 | (a) | |||||||
Expenses after expense reductions (f)(h) | 0.10 | 0.11 | 0.10 | 0.10 | (a) | |||||||
Net investment income | 4.07 | 4.16 | 4.14 | 4.24 | (a) | |||||||
Portfolio turnover | 58 | 61 | 22 | 14 | ||||||||
Net assets at end of period (000 Omitted) | $198 | $203 | $67 | $51 | ||||||||
See Notes to Financial Statements
27
Table of Contents
Financial Highlights – continued
MFS LIFETIME RETIREMENT INCOME FUND – continued
| Years ended 4/30 | ||||||||||||
| Class R1 | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $10.10 | $10.35 | $10.00 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (d) | $0.29 | $0.39 | $0.32 | $0.18 | ||||||||
Net realized and unrealized gain (loss) on investments | (1.06 | ) | (0.17 | ) | 0.35 | 0.00 | (w) | |||||
Total from investment operations | $(0.77 | ) | $0.22 | $0.67 | $0.18 | |||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.28 | ) | $(0.35 | ) | $(0.31 | ) | $(0.18 | ) | ||||
From net realized gain on investments | (0.04 | ) | (0.12 | ) | (0.01 | ) | — | |||||
Total distributions declared to shareholders | $(0.32 | ) | $(0.47 | ) | $(0.32 | ) | $(0.18 | ) | ||||
Net asset value, end of period | $9.01 | $10.10 | $10.35 | $10.00 | ||||||||
Total return (%) (r)(s) | (7.51 | ) | 2.13 | 6.77 | 1.82 | (n) | ||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 1.91 | 2.43 | 4.65 | 15.02 | (a) | |||||||
Expenses after expense reductions (f)(h) | 1.10 | 1.19 | 1.20 | 1.20 | (a) | |||||||
Net investment income | 3.12 | 3.57 | 3.04 | 3.15 | (a) | |||||||
Portfolio turnover | 58 | 61 | 22 | 14 | ||||||||
Net assets at end of period (000 Omitted) | $691 | $645 | $1,162 | $127 | ||||||||
| Years ended 4/30 | ||||||||||||
| Class R2 | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $10.09 | $10.36 | $10.00 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (d) | $0.33 | $0.38 | $0.38 | $0.20 | ||||||||
Net realized and unrealized gain (loss) on investments | (1.05 | ) | (0.13 | ) | 0.34 | 0.01 | ||||||
Total from investment operations | $(0.72 | ) | $0.25 | $0.72 | $0.21 | |||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.33 | ) | $(0.40 | ) | $(0.35 | ) | $(0.21 | ) | ||||
From net realized gain on investments | (0.04 | ) | (0.12 | ) | (0.01 | ) | — | |||||
Total distributions declared to shareholders | $(0.37 | ) | $(0.52 | ) | $(0.36 | ) | $(0.21 | ) | ||||
Net asset value, end of period | $9.00 | $10.09 | $10.36 | $10.00 | ||||||||
Total return (%) (r)(s) | (7.05 | ) | 2.42 | 7.35 | 2.09 | (n) | ||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 1.40 | 1.84 | 4.23 | 14.57 | (a) | |||||||
Expenses after expense reductions (f)(h) | 0.60 | 0.69 | 0.75 | 0.75 | (a) | |||||||
Net investment income | 3.57 | 3.76 | 3.50 | 3.54 | (a) | |||||||
Portfolio turnover | 58 | 61 | 22 | 14 | ||||||||
Net assets at end of period (000 Omitted) | $6,102 | $6,504 | $1,314 | $241 | ||||||||
See Notes to Financial Statements
28
Table of Contents
Financial Highlights – continued
MFS LIFETIME RETIREMENT INCOME FUND – continued
| Years ended 4/30 | ||||||||||||
| Class R3 | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $10.09 | $10.35 | $10.00 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (d) | $0.35 | $0.44 | $0.36 | $0.22 | ||||||||
Net realized and unrealized gain (loss) on investments | (1.06 | ) | (0.16 | ) | 0.38 | (0.00 | )(g)(w) | |||||
Total from investment operations | $(0.71 | ) | $0.28 | $0.74 | $0.22 | |||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.35 | ) | $(0.42 | ) | $(0.38 | ) | $(0.22 | ) | ||||
From net realized gain on investments | (0.04 | ) | (0.12 | ) | (0.01 | ) | — | |||||
Total distributions declared to shareholders | $(0.39 | ) | $(0.54 | ) | $(0.39 | ) | $(0.22 | ) | ||||
Net asset value, end of period | $8.99 | $10.09 | $10.35 | $10.00 | ||||||||
Total return (%) (r)(s) | (6.92 | ) | 2.77 | 7.51 | 2.24 | (n) | ||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 1.15 | 1.66 | 3.57 | 14.22 | (a) | |||||||
Expenses after expense reductions (f)(h) | 0.35 | 0.45 | 0.50 | 0.50 | (a) | |||||||
Net investment income | 3.82 | 4.14 | 3.62 | 3.84 | (a) | |||||||
Portfolio turnover | 58 | 61 | 22 | 14 | ||||||||
Net assets at end of period (000 Omitted) | $5,071 | $5,616 | $660 | $53 | ||||||||
| Years ended 4/30 | ||||||||||||
| Class R4 | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $10.10 | $10.37 | $10.00 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (d) | $0.37 | $0.44 | $0.41 | $0.24 | ||||||||
Net realized and unrealized gain (loss) on investments | (1.05 | ) | (0.14 | ) | 0.38 | 0.00 | (w) | |||||
Total from investment operations | $(0.68 | ) | $0.30 | $0.79 | $0.24 | |||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.38 | ) | $(0.45 | ) | $(0.41 | ) | $(0.24 | ) | ||||
From net realized gain on investments | (0.04 | ) | (0.12 | ) | (0.01 | ) | — | |||||
Total distributions declared to shareholders | $(0.42 | ) | $(0.57 | ) | $(0.42 | ) | $(0.24 | ) | ||||
Net asset value, end of period | $9.00 | $10.10 | $10.37 | $10.00 | ||||||||
Total return (%) (r)(s) | (6.67 | ) | 2.97 | 8.04 | 2.42 | (n) | ||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 0.88 | 1.42 | 3.58 | 13.92 | (a) | |||||||
Expenses after expense reductions (f)(h) | 0.10 | 0.16 | 0.20 | 0.20 | (a) | |||||||
Net investment income | 3.97 | 4.28 | 4.04 | 4.14 | (a) | |||||||
Portfolio turnover | 58 | 61 | 22 | 14 | ||||||||
Net assets at end of period (000 Omitted) | $58 | $172 | $55 | $51 | ||||||||
See Notes to Financial Statements
29
Table of Contents
Financial Highlights – continued
MFS LIFETIME RETIREMENT INCOME FUND – continued
| (a) | Annualized. |
| (c) | For the period from the commencement of the fund’s investment operations, September 29, 2005, through the stated period end. |
| (d) | Per share data is based on average shares outstanding. |
| (f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
| (g) | The per share amount is not in accordance with the net realized and unrealized gain/loss for the period because of the timing of sales of fund shares and the per share amount of realized and unrealized gains and losses at such time. |
| (h) | 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. Because the underlying funds have varied expense and fee levels and the fund may own different proportions of the underlying funds at different times, the amount of fees and expenses incurred directly by the fund will vary. |
| (n) | Not annualized. |
| (r) | Certain expenses have been reduced without which performance would have been lower. |
| (s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
| (t) | Total returns do not include any applicable sales charges. |
| (w) | Per share amount was less than $0.01. |
See Notes to Financial Statements
30
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2010 FUND
The financial highlights table is intended to help you understand the fund financial performance for the past 5 years (or life of a particular share class, if shorter). Certain information reflects financial results for a single fund share. The total returns in the table represent the rate by which 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.
| Years ended 4/30 | ||||||||||||
| Class A | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $10.98 | $11.08 | $10.39 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (d) | $0.34 | $0.37 | $0.35 | $0.18 | ||||||||
Net realized and unrealized gain (loss) on investments | (1.45 | ) | (0.07 | ) | 0.56 | 0.29 | ||||||
Total from investment operations | $(1.11 | ) | $0.30 | $0.91 | $0.47 | |||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.35 | ) | $(0.25 | ) | $(0.20 | ) | $(0.08 | ) | ||||
From net realized gain on investments | (0.01 | ) | (0.15 | ) | (0.02 | ) | — | |||||
Total distributions declared to shareholders | $(0.36 | ) | $(0.40 | ) | $(0.22 | ) | $(0.08 | ) | ||||
Net asset value, end of period | $9.51 | $10.98 | $11.08 | $10.39 | ||||||||
Total return (%) (r)(s)(t) | (9.89 | ) | 2.65 | 8.80 | 4.67 | (n) | ||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 0.90 | 1.19 | 2.63 | 13.57 | (a) | |||||||
Expenses after expense reductions (f)(h) | 0.43 | 0.45 | 0.45 | 0.45 | (a) | |||||||
Net investment income | 3.44 | 3.42 | 3.25 | 2.96 | (a) | |||||||
Portfolio turnover | 62 | 22 | 27 | 3 | ||||||||
Net assets at end of period (000 Omitted) | $6,136 | $5,308 | $3,058 | $468 | ||||||||
| Years ended 4/30 | ||||||||||||
| Class B | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $10.91 | $11.02 | $10.37 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (d) | $0.27 | $0.29 | $0.28 | $0.14 | ||||||||
Net realized and unrealized gain (loss) on investments | (1.43 | ) | (0.07 | ) | 0.54 | 0.29 | ||||||
Total from investment operations | $(1.16 | ) | $0.22 | $0.82 | $0.43 | |||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.30 | ) | $(0.18 | ) | $(0.15 | ) | $(0.06 | ) | ||||
From net realized gain on investments | (0.01 | ) | (0.15 | ) | (0.02 | ) | — | |||||
Total distributions declared to shareholders | $(0.31 | ) | $(0.33 | ) | $(0.17 | ) | $(0.06 | ) | ||||
Net asset value, end of period | $9.44 | $10.91 | $11.02 | $10.37 | ||||||||
Total return (%) (r)(s)(t) | (10.46 | ) | 2.01 | 7.99 | 4.32 | (n) | ||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 1.57 | 1.85 | 3.41 | 14.22 | (a) | |||||||
Expenses after expense reductions (f)(h) | 1.10 | 1.10 | 1.10 | 1.10 | (a) | |||||||
Net investment income | 2.77 | 2.75 | 2.59 | 2.32 | (a) | |||||||
Portfolio turnover | 62 | 22 | 27 | 3 | ||||||||
Net assets at end of period (000 Omitted) | $1,762 | $1,578 | $677 | $138 | ||||||||
See Notes to Financial Statements
31
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2010 FUND – continued
| Years ended 4/30 | ||||||||||||
| Class C | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $10.89 | $11.02 | $10.37 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (d) | $0.27 | $0.31 | $0.27 | $0.14 | ||||||||
Net realized and unrealized gain (loss) on investments | (1.44 | ) | (0.09 | ) | 0.56 | 0.29 | ||||||
Total from investment operations | $(1.17 | ) | $0.22 | $0.83 | $0.43 | |||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.31 | ) | $(0.20 | ) | $(0.16 | ) | $(0.06 | ) | ||||
From net realized gain on investments | (0.01 | ) | (0.15 | ) | (0.02 | ) | — | |||||
Total distributions declared to shareholders | $(0.32 | ) | $(0.35 | ) | $(0.18 | ) | $(0.06 | ) | ||||
Net asset value, end of period | $9.40 | $10.89 | $11.02 | $10.37 | ||||||||
Total return (%) (r)(s)(t) | (10.52 | ) | 1.98 | 8.01 | 4.28 | (n) | ||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 1.58 | 1.87 | 3.41 | 14.22 | (a) | |||||||
Expenses after expense reductions (f)(h) | 1.10 | 1.10 | 1.10 | 1.10 | (a) | |||||||
Net investment income | 2.79 | 2.80 | 2.60 | 2.33 | (a) | |||||||
Portfolio turnover | 62 | 22 | 27 | 3 | ||||||||
Net assets at end of period (000 Omitted) | $2,138 | $946 | $522 | $96 | ||||||||
| Years ended 4/30 | ||||||||||||
| Class I | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $11.02 | $11.11 | $10.41 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (d) | $0.37 | $0.43 | $0.36 | $0.22 | ||||||||
Net realized and unrealized gain (loss) on investments | (1.46 | ) | (0.09 | ) | 0.57 | 0.27 | ||||||
Total from investment operations | $(1.09 | ) | $0.34 | $0.93 | $0.49 | |||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.38 | ) | $(0.28 | ) | $(0.21 | ) | $(0.08 | ) | ||||
From net realized gain on investments | (0.01 | ) | (0.15 | ) | (0.02 | ) | — | |||||
Total distributions declared to shareholders | $(0.39 | ) | $(0.43 | ) | $(0.23 | ) | $(0.08 | ) | ||||
Net asset value, end of period | $9.54 | $11.02 | $11.11 | $10.41 | ||||||||
Total return (%) (r)(s) | (9.64 | ) | 3.02 | 9.05 | 4.94 | (n) | ||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 0.55 | 0.84 | 2.63 | 13.22 | (a) | |||||||
Expenses after expense reductions (f)(h) | 0.10 | 0.10 | 0.10 | 0.10 | (a) | |||||||
Net investment income | 3.66 | 3.81 | 3.53 | 3.26 | (a) | |||||||
Portfolio turnover | 62 | 22 | 27 | 3 | ||||||||
Net assets at end of period (000 Omitted) | $370 | $521 | $546 | $264 | ||||||||
See Notes to Financial Statements
32
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2010 FUND – continued
| Years ended 4/30 | ||||||||||||
| Class R1 | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $10.85 | $10.99 | $10.37 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (d) | $0.27 | $0.29 | $0.26 | $0.13 | ||||||||
Net realized and unrealized gain (loss) on investments | (1.43 | ) | (0.08 | ) | 0.55 | 0.29 | ||||||
Total from investment operations | $(1.16 | ) | $0.21 | $0.81 | $0.42 | |||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.29 | ) | $(0.20 | ) | $(0.17 | ) | $(0.05 | ) | ||||
From net realized gain on investments | (0.01 | ) | (0.15 | ) | (0.02 | ) | — | |||||
Total distributions declared to shareholders | $(0.30 | ) | $(0.35 | ) | $(0.19 | ) | $(0.05 | ) | ||||
Net asset value, end of period | $9.39 | $10.85 | $10.99 | $10.37 | ||||||||
Total return (%) (r)(s) | (10.49 | ) | 1.91 | 7.84 | 4.26 | (n) | ||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 1.57 | 1.88 | 3.39 | 14.42 | (a) | |||||||
Expenses after expense reductions (f)(h) | 1.10 | 1.17 | 1.20 | 1.20 | (a) | |||||||
Net investment income | 2.78 | 2.65 | 2.53 | 2.21 | (a) | |||||||
Portfolio turnover | 62 | 22 | 27 | 3 | ||||||||
Net assets at end of period (000 Omitted) | $2,636 | $2,442 | $829 | $86 | ||||||||
| Years ended 4/30 | ||||||||||||
| Class R2 | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $10.92 | $11.04 | $10.38 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (d) | $0.32 | $0.34 | $0.32 | $0.14 | ||||||||
Net realized and unrealized gain (loss) on investments | (1.44 | ) | (0.07 | ) | 0.54 | 0.31 | ||||||
Total from investment operations | $(1.12 | ) | $0.27 | $0.86 | $0.45 | |||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.34 | ) | $(0.24 | ) | $(0.18 | ) | $(0.07 | ) | ||||
From net realized gain on investments | (0.01 | ) | (0.15 | ) | (0.02 | ) | — | |||||
Total distributions declared to shareholders | $(0.35 | ) | $(0.39 | ) | $(0.20 | ) | $(0.07 | ) | ||||
Net asset value, end of period | $9.45 | $10.92 | $11.04 | $10.38 | ||||||||
Total return (%) (r)(s) | (10.06 | ) | 2.40 | 8.36 | 4.47 | (n) | ||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 1.07 | 1.46 | 3.03 | 13.97 | (a) | |||||||
Expenses after expense reductions (f)(h) | 0.60 | 0.68 | 0.75 | 0.75 | (a) | |||||||
Net investment income | 3.28 | 3.21 | 2.94 | 2.71 | (a) | |||||||
Portfolio turnover | 62 | 22 | 27 | 3 | ||||||||
Net assets at end of period (000 Omitted) | $13,266 | $13,184 | $2,794 | $261 | ||||||||
See Notes to Financial Statements
33
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2010 FUND – continued
| Years ended 4/30 | ||||||||||||
| Class R3 | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $10.98 | $11.07 | $10.39 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (d) | $0.35 | $0.39 | $0.35 | $0.22 | ||||||||
Net realized and unrealized gain (loss) on investments | (1.46 | ) | (0.09 | ) | 0.54 | 0.25 | ||||||
Total from investment operations | $(1.11 | ) | $0.30 | $0.89 | $0.47 | |||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.35 | ) | $(0.24 | ) | $(0.19 | ) | $(0.08 | ) | ||||
From net realized gain on investments | (0.01 | ) | (0.15 | ) | (0.02 | ) | — | |||||
Total distributions declared to shareholders | $(0.36 | ) | $(0.39 | ) | $(0.21 | ) | $(0.08 | ) | ||||
Net asset value, end of period | $9.51 | $10.98 | $11.07 | $10.39 | ||||||||
Total return (%) (r)(s) | (9.85 | ) | 2.68 | 8.67 | 4.71 | (n) | ||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 0.81 | 1.21 | 2.47 | 13.62 | (a) | |||||||
Expenses after expense reductions (f)(h) | 0.35 | 0.45 | 0.50 | 0.50 | (a) | |||||||
Net investment income | 3.49 | 3.44 | 3.14 | 3.08 | (a) | |||||||
Portfolio turnover | 62 | 22 | 27 | 3 | ||||||||
Net assets at end of period (000 Omitted) | $4,658 | $5,796 | $4,685 | $549 | ||||||||
| Years ended 4/30 | ||||||||||||
| Class R4 | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $11.01 | $11.11 | $10.40 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (d) | $0.37 | $0.42 | $0.37 | $0.19 | ||||||||
Net realized and unrealized gain (loss) on investments | (1.46 | ) | (0.10 | ) | 0.57 | 0.29 | ||||||
Total from investment operations | $(1.09 | ) | $0.32 | $0.94 | $0.48 | |||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.38 | ) | $(0.27 | ) | $(0.21 | ) | $(0.08 | ) | ||||
From net realized gain on investments | (0.01 | ) | (0.15 | ) | (0.02 | ) | — | |||||
Total distributions declared to shareholders | $(0.39 | ) | $(0.42 | ) | $(0.23 | ) | $(0.08 | ) | ||||
Net asset value, end of period | $9.53 | $11.01 | $11.11 | $10.40 | ||||||||
Total return (%) (r)(s) | (9.64 | ) | 2.89 | 9.06 | 4.81 | (n) | ||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 0.52 | 0.98 | 2.80 | 13.32 | (a) | |||||||
Expenses after expense reductions (f)(h) | 0.10 | 0.15 | 0.20 | 0.20 | (a) | |||||||
Net investment income | 3.48 | 3.84 | 3.46 | 3.22 | (a) | |||||||
Portfolio turnover | 62 | 22 | 27 | 3 | ||||||||
Net assets at end of period (000 Omitted) | $108 | $582 | $57 | $52 | ||||||||
See Notes to Financial Statements
34
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2010 FUND – continued
| (a) | Annualized. |
| (c) | For the period from the commencement of the fund’s investment operations, September 29, 2005, through the stated period end. |
| (d) | Per share data is based on average shares outstanding. |
| (f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
| (h) | 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. Because the underlying funds have varied expense and fee levels and the fund may own different proportions of the underlying funds at different times, the amount of fees and expenses incurred indirectly by the fund will vary. |
| (n) | Not annualized. |
| (r) | Certain expenses have been reduced without which performance would have been lower. |
| (s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
| (t) | Total returns do not include any applicable sales charges. |
See Notes to Financial Statements
35
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2020 FUND
The financial highlights table is intended to help you understand the fund financial performance for the past 5 years (or life of a particular share class, if shorter). Certain information reflects financial results for a single fund share. The total returns in the table represent the rate by which 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.
| Years ended 4/30 | ||||||||||||
| Class A | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $11.36 | $11.85 | $10.85 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (d) | $0.21 | $0.22 | $0.18 | $0.08 | ||||||||
Net realized and unrealized gain (loss) on investments | (3.28 | ) | (0.15 | ) | 1.03 | 0.92 | ||||||
Total from investment operations | $(3.07 | ) | $0.07 | $1.21 | $1.00 | |||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.26 | ) | $(0.24 | ) | $(0.15 | ) | $(0.15 | ) | ||||
From net realized gain on investments | (0.06 | ) | (0.32 | ) | (0.06 | ) | — | |||||
Total distributions declared to shareholders | $(0.32 | ) | $(0.56 | ) | $(0.21 | ) | $(0.15 | ) | ||||
Net asset value, end of period | $7.97 | $11.36 | $11.85 | $10.85 | ||||||||
Total return (%) (r)(s)(t) | (26.93 | ) | 0.47 | 11.26 | 10.14 | (n) | ||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 0.60 | 0.74 | 1.26 | 5.30 | (a) | |||||||
Expenses after expense reductions (f)(h) | 0.43 | 0.45 | 0.45 | 0.45 | (a) | |||||||
Net investment income | 2.35 | 1.86 | 1.63 | 1.34 | (a) | |||||||
Portfolio turnover | 38 | 15 | 7 | 4 | ||||||||
Net assets at end of period (000 Omitted) | $10,928 | $10,843 | $8,188 | $2,718 | ||||||||
| Years ended 4/30 | ||||||||||||
| Class B | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $11.28 | $11.79 | $10.82 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (d) | $0.15 | $0.14 | $0.11 | $0.06 | ||||||||
Net realized and unrealized gain (loss) on investments | (3.26 | ) | (0.15 | ) | 1.02 | 0.90 | ||||||
Total from investment operations | $(3.11 | ) | $(0.01 | ) | $1.13 | $0.96 | ||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.19 | ) | $(0.18 | ) | $(0.10 | ) | $(0.14 | ) | ||||
From net realized gain on investments | (0.06 | ) | (0.32 | ) | (0.06 | ) | — | |||||
Total distributions declared to shareholders | $(0.25 | ) | $(0.50 | ) | $(0.16 | ) | $(0.14 | ) | ||||
Net asset value, end of period | $7.92 | $11.28 | $11.79 | $10.82 | ||||||||
Total return (%) (r)(s)(t) | (27.49 | ) | (0.23 | ) | 10.57 | 9.71 | (n) | |||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 1.26 | 1.39 | 1.92 | 5.95 | (a) | |||||||
Expenses after expense reductions (f)(h) | 1.10 | 1.10 | 1.10 | 1.10 | (a) | |||||||
Net investment income | 1.63 | 1.23 | 1.01 | 0.84 | (a) | |||||||
Portfolio turnover | 38 | 15 | 7 | 4 | ||||||||
Net assets at end of period (000 Omitted) | $3,176 | $4,423 | $3,428 | $1,009 | ||||||||
See Notes to Financial Statements
36
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2020 FUND – continued
| Years ended 4/30 | ||||||||||||
| Class C | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $11.24 | $11.78 | $10.83 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (d) | $0.14 | $0.15 | $0.12 | $0.06 | ||||||||
Net realized and unrealized gain (loss) on investments | (3.24 | ) | (0.16 | ) | 1.01 | 0.91 | ||||||
Total from investment operations | $(3.10 | ) | $(0.01 | ) | $1.13 | $0.97 | ||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.20 | ) | $(0.21 | ) | $(0.12 | ) | $(0.14 | ) | ||||
From net realized gain on investments | (0.06 | ) | (0.32 | ) | (0.06 | ) | — | |||||
Total distributions declared to shareholders | $(0.26 | ) | $(0.53 | ) | $(0.18 | ) | $(0.14 | ) | ||||
Net asset value, end of period | $7.88 | $11.24 | $11.78 | $10.83 | ||||||||
Total return (%) (r)(s)(t) | (27.49 | ) | (0.26 | ) | 10.58 | 9.79 | (n) | |||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 1.27 | 1.39 | 1.86 | 5.95 | (a) | |||||||
Expenses after expense reductions (f)(h) | 1.10 | 1.10 | 1.10 | 1.10 | (a) | |||||||
Net investment income | 1.62 | 1.31 | 1.07 | 0.96 | (a) | |||||||
Portfolio turnover | 38 | 15 | 7 | 4 | ||||||||
Net assets at end of period (000 Omitted) | $3,036 | $2,529 | $1,148 | $143 | ||||||||
| Years ended 4/30 | ||||||||||||
| Class I | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $11.41 | $11.90 | $10.87 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (d) | $0.24 | $0.28 | $0.22 | $0.10 | ||||||||
Net realized and unrealized gain (loss) on investments | (3.30 | ) | (0.17 | ) | 1.04 | 0.93 | ||||||
Total from investment operations | $(3.06 | ) | $0.11 | $1.26 | $1.03 | |||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.29 | ) | $(0.28 | ) | $(0.17 | ) | $(0.16 | ) | ||||
From net realized gain on investments | (0.06 | ) | (0.32 | ) | (0.06 | ) | — | |||||
Total distributions declared to shareholders | $(0.35 | ) | $(0.60 | ) | $(0.23 | ) | $(0.16 | ) | ||||
Net asset value, end of period | $8.00 | $11.41 | $11.90 | $10.87 | ||||||||
Total return (%) (r)(s) | (26.72 | ) | 0.76 | 11.71 | 10.38 | (n) | ||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 0.27 | 0.41 | 0.96 | 4.95 | (a) | |||||||
Expenses after expense reductions (f)(h) | 0.10 | 0.10 | 0.10 | 0.10 | (a) | |||||||
Net investment income | 2.65 | 2.32 | 1.97 | 1.60 | (a) | |||||||
Portfolio turnover | 38 | 15 | 7 | 4 | ||||||||
Net assets at end of period (000 Omitted) | $645 | $690 | $613 | $324 | ||||||||
See Notes to Financial Statements
37
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2020 FUND – continued
| Years ended 4/30 | ||||||||||||
| Class R1 | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $11.23 | $11.78 | $10.83 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (d) | $0.14 | $0.14 | $0.10 | $0.04 | ||||||||
Net realized and unrealized gain (loss) on investments | (3.23 | ) | (0.16 | ) | 1.02 | 0.92 | ||||||
Total from investment operations | $(3.09 | ) | $(0.02 | ) | $1.12 | $0.96 | ||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.18 | ) | $(0.21 | ) | $(0.11 | ) | $(0.13 | ) | ||||
From net realized gain on investments | (0.06 | ) | (0.32 | ) | (0.06 | ) | — | |||||
Total distributions declared to shareholders | $(0.24 | ) | $(0.53 | ) | $(0.17 | ) | $(0.13 | ) | ||||
Net asset value, end of period | $7.90 | $11.23 | $11.78 | $10.83 | ||||||||
Total return (%) (r)(s) | (27.46 | ) | (0.28 | ) | 10.41 | 9.68 | (n) | |||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 1.26 | 1.45 | 2.08 | 6.14 | (a) | |||||||
Expenses after expense reductions (f)(h) | 1.10 | 1.17 | 1.20 | 1.20 | (a) | |||||||
Net investment income | 1.53 | 1.22 | 0.90 | 0.58 | (a) | |||||||
Portfolio turnover | 38 | 15 | 7 | 4 | ||||||||
Net assets at end of period (000 Omitted) | $6,757 | $8,935 | $2,549 | $549 | ||||||||
| Years ended 4/30 | ||||||||||||
| Class R2 | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $11.31 | $11.83 | $10.84 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (d) | $0.19 | $0.18 | $0.15 | $0.08 | ||||||||
Net realized and unrealized gain (loss) on investments | (3.26 | ) | (0.15 | ) | 1.03 | 0.91 | ||||||
Total from investment operations | $(3.07 | ) | $0.03 | $1.18 | $0.99 | |||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.25 | ) | $(0.23 | ) | $(0.13 | ) | $(0.15 | ) | ||||
From net realized gain on investments | (0.06 | ) | (0.32 | ) | (0.06 | ) | — | |||||
Total distributions declared to shareholders | $(0.31 | ) | $(0.55 | ) | $(0.19 | ) | $(0.15 | ) | ||||
Net asset value, end of period | $7.93 | $11.31 | $11.83 | $10.84 | ||||||||
Total return (%) (r)(s) | (27.05 | ) | 0.09 | 11.03 | 9.99 | (n) | ||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 0.77 | 0.98 | 1.62 | 5.69 | (a) | |||||||
Expenses after expense reductions (f)(h) | 0.60 | 0.69 | 0.75 | 0.75 | (a) | |||||||
Net investment income | 2.18 | 1.63 | 1.36 | 1.28 | (a) | |||||||
Portfolio turnover | 38 | 15 | 7 | 4 | ||||||||
Net assets at end of period (000 Omitted) | $31,030 | $30,874 | $10,494 | $1,271 | ||||||||
See Notes to Financial Statements
38
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2020 FUND – continued
| Years ended 4/30 | ||||||||||||
| Class R3 | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $11.36 | $11.85 | $10.86 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (d) | $0.21 | $0.22 | $0.19 | $0.12 | ||||||||
Net realized and unrealized gain (loss) on investments | (3.28 | ) | (0.15 | ) | 1.01 | 0.89 | ||||||
Total from investment operations | $(3.07 | ) | $0.07 | $1.20 | $1.01 | |||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.26 | ) | $(0.24 | ) | $(0.15 | ) | $(0.15 | ) | ||||
From net realized gain on investments | (0.06 | ) | (0.32 | ) | (0.06 | ) | — | |||||
Total distributions declared to shareholders | $(0.32 | ) | $(0.56 | ) | $(0.21 | ) | $(0.15 | ) | ||||
Net asset value, end of period | $7.97 | $11.36 | $11.85 | $10.86 | ||||||||
Total return (%) (r)(s) | (26.91 | ) | 0.43 | 11.15 | 10.24 | (n) | ||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 0.51 | 0.75 | 1.26 | 5.35 | (a) | |||||||
Expenses after expense reductions (f)(h) | 0.35 | 0.45 | 0.50 | 0.50 | (a) | |||||||
Net investment income | 2.33 | 1.87 | 1.67 | 1.63 | (a) | |||||||
Portfolio turnover | 38 | 15 | 7 | 4 | ||||||||
Net assets at end of period (000 Omitted) | $11,616 | $16,151 | $11,326 | $1,480 | ||||||||
| Years ended 4/30 | ||||||||||||
| Class R4 | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $11.40 | $11.90 | $10.87 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (d) | $0.22 | $0.26 | $0.21 | $0.11 | ||||||||
Net realized and unrealized gain (loss) on investments | (3.28 | ) | (0.17 | ) | 1.04 | 0.91 | ||||||
Total from investment operations | $(3.06 | ) | $0.09 | $1.25 | $1.02 | |||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.29 | ) | $(0.27 | ) | $(0.16 | ) | $(0.15 | ) | ||||
From net realized gain on investments | (0.06 | ) | (0.32 | ) | (0.06 | ) | — | |||||
Total distributions declared to shareholders | $(0.35 | ) | $(0.59 | ) | $(0.22 | ) | $(0.15 | ) | ||||
Net asset value, end of period | $7.99 | $11.40 | $11.90 | $10.87 | ||||||||
Total return (%) (r)(s) | (26.75 | ) | 0.64 | 11.61 | 10.35 | (n) | ||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 0.23 | 0.48 | 1.09 | 5.05 | (a) | |||||||
Expenses after expense reductions (f)(h) | 0.10 | 0.15 | 0.20 | 0.20 | (a) | |||||||
Net investment income | 1.99 | 2.36 | 1.88 | 1.87 | (a) | |||||||
Portfolio turnover | 38 | 15 | 7 | 4 | ||||||||
Net assets at end of period (000 Omitted) | $204 | $2,283 | $62 | $55 | ||||||||
| (a) | Annualized. |
| (c) | For the period from the commencement of the fund’s investment operations, September 29, 2005, through the stated period end. |
| (d) | Per share data is based on average shares outstanding. |
| (f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
| (h) | 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. Accordingly, the expense ratio for the fund reflects only those fees and expenses borne directly by the fund. Because the underlying funds have varied expense and fee levels and the fund may own different proportions of the underlying funds at different times, the amount of fees and expenses incurred indirectly by the fund will vary. |
| (n) | Not annualized. |
| (r) | Certain expenses have been reduced without which performance would have been lower. |
| (s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
| (t) | Total returns do not include any applicable sales charges. |
See Notes to Financial Statements
39
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2030 FUND
The financial highlights table is intended to help you understand the fund financial performance for the past 5 years (or life of a particular share class, if shorter). Certain information reflects financial results for a single fund share. The total returns in the table represent the rate by which 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.
| Years ended 4/30 | ||||||||||||
| Class A | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $11.41 | $12.24 | $11.10 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (d) | $0.08 | $0.07 | $0.07 | $0.01 | ||||||||
Net realized and unrealized gain (loss) on investments | (4.14 | ) | (0.24 | ) | 1.20 | 1.25 | ||||||
Total from investment operations | $(4.06 | ) | $(0.17 | ) | $1.27 | $1.26 | ||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.16 | ) | $(0.20 | ) | $(0.12 | ) | $(0.16 | ) | ||||
From net realized gain on investments | (0.11 | ) | (0.46 | ) | (0.01 | ) | — | |||||
Total distributions declared to shareholders | $(0.27 | ) | $(0.66 | ) | $(0.13 | ) | $(0.16 | ) | ||||
Net asset value, end of period | $7.08 | $11.41 | $12.24 | $11.10 | ||||||||
Total return (%) (r)(s)(t) | (35.45 | ) | (1.65 | ) | 11.57 | 12.73 | (n) | |||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 0.74 | 0.87 | 1.84 | 11.40 | (a) | |||||||
Expenses after expense reductions (f)(h) | 0.44 | 0.45 | 0.45 | 0.45 | (a) | |||||||
Net investment income | 0.98 | 0.60 | 0.63 | 0.20 | (a) | |||||||
Portfolio turnover | 38 | 14 | 17 | 4 | ||||||||
Net assets at end of period (000 Omitted) | $4,634 | $5,917 | $4,758 | $686 | ||||||||
| Years ended 4/30 | ||||||||||||
| Class B | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $11.32 | $12.17 | $11.07 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (loss) (d) | $0.02 | $(0.00 | )(w) | $(0.00 | )(w) | $(0.03 | ) | |||||
Net realized and unrealized gain (loss) on investments | (4.09 | ) | (0.25 | ) | 1.19 | 1.25 | ||||||
Total from investment operations | $(4.07 | ) | $(0.25 | ) | $1.19 | $1.22 | ||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.11 | ) | $(0.14 | ) | $(0.08 | ) | $(0.15 | ) | ||||
From net realized gain on investments | (0.11 | ) | (0.46 | ) | (0.01 | ) | — | |||||
Total distributions declared to shareholders | $(0.22 | ) | $(0.60 | ) | $(0.09 | ) | $(0.15 | ) | ||||
Net asset value, end of period | $7.03 | $11.32 | $12.17 | $11.07 | ||||||||
Total return (%) (r)(s)(t) | (35.89 | ) | (2.30 | ) | 10.80 | 12.36 | (n) | |||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 1.41 | 1.53 | 2.54 | 12.05 | (a) | |||||||
Expenses after expense reductions (f)(h) | 1.10 | 1.10 | 1.10 | 1.10 | (a) | |||||||
Net investment income (loss) | 0.24 | (0.02 | ) | (0.04 | ) | (0.41 | )(a) | |||||
Portfolio turnover | 38 | 14 | 17 | 4 | ||||||||
Net assets at end of period (000 Omitted) | $1,735 | $2,195 | $1,269 | $382 | ||||||||
See Notes to Financial Statements
40
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2030 FUND – continued
| Years ended 4/30 | ||||||||||||
| Class C | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $11.34 | $12.20 | $11.08 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (loss) (d) | $0.03 | $(0.00 | )(w) | $(0.02 | ) | $(0.01 | ) | |||||
Net realized and unrealized gain (loss) on investments | (4.10 | ) | (0.25 | ) | 1.20 | 1.24 | ||||||
Total from investment operations | $(4.07 | ) | $(0.25 | ) | $1.18 | $1.23 | ||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.13 | ) | $(0.15 | ) | $(0.05 | ) | $(0.15 | ) | ||||
From net realized gain on investments | (0.11 | ) | (0.46 | ) | (0.01 | ) | — | |||||
Total distributions declared to shareholders | $(0.24 | ) | $(0.61 | ) | $(0.06 | ) | $(0.15 | ) | ||||
Net asset value, end of period | $7.03 | $11.34 | $12.20 | $11.08 | ||||||||
Total return (%) (r)(s)(t) | (35.82 | ) | (2.29 | ) | 10.72 | 12.39 | (n) | |||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 1.42 | 1.53 | 2.61 | 12.05 | (a) | |||||||
Expenses after expense reductions (f)(h) | 1.10 | 1.10 | 1.10 | 1.10 | (a) | |||||||
Net investment income (loss) | 0.42 | (0.01 | ) | (0.16 | ) | (0.13 | )(a) | |||||
Portfolio turnover | 38 | 14 | 17 | 4 | ||||||||
Net assets at end of period (000 Omitted) | $981 | $801 | $450 | $114 | ||||||||
| Years ended 4/30 | ||||||||||||
| Class I | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $11.46 | $12.29 | $11.12 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (d) | $0.11 | $0.10 | $0.10 | $0.04 | ||||||||
Net realized and unrealized gain (loss) on investments | (4.16 | ) | (0.24 | ) | 1.22 | 1.25 | ||||||
Total from investment operations | $(4.05 | ) | $(0.14 | ) | $1.32 | $1.29 | ||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.19 | ) | $(0.23 | ) | $(0.14 | ) | $(0.17 | ) | ||||
From net realized gain on investments | (0.11 | ) | (0.46 | ) | (0.01 | ) | — | |||||
Total distributions declared to shareholders | $(0.30 | ) | $(0.69 | ) | $(0.15 | ) | $(0.17 | ) | ||||
Net asset value, end of period | $7.11 | $11.46 | $12.29 | $11.12 | ||||||||
Total return (%) (r)(s) | (35.18 | ) | (1.35 | ) | 11.99 | 12.99 | (n) | |||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 0.41 | 0.52 | 1.62 | 11.05 | (a) | |||||||
Expenses after expense reductions (f)(h) | 0.10 | 0.10 | 0.10 | 0.10 | (a) | |||||||
Net investment income | 1.29 | 0.86 | 0.91 | 0.67 | (a) | |||||||
Portfolio turnover | 38 | 14 | 17 | 4 | ||||||||
Net assets at end of period (000 Omitted) | $1,149 | $1,308 | $1,314 | $701 | ||||||||
See Notes to Financial Statements
41
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2030 FUND – continued
| Years ended 4/30 | ||||||||||||
| Class R1 | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $11.29 | $12.17 | $11.08 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (loss) (d) | $0.02 | $(0.01 | ) | $(0.02 | ) | $(0.03 | ) | |||||
Net realized and unrealized gain (loss) on investments | (4.08 | ) | (0.26 | ) | 1.20 | 1.25 | ||||||
Total from investment operations | $(4.06 | ) | $(0.27 | ) | $1.18 | $1.22 | ||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.09 | ) | $(0.15 | ) | $(0.08 | ) | $(0.14 | ) | ||||
From net realized gain on investments | (0.11 | ) | (0.46 | ) | (0.01 | ) | — | |||||
Total distributions declared to shareholders | $(0.20 | ) | $(0.61 | ) | $(0.09 | ) | $(0.14 | ) | ||||
Net asset value, end of period | $7.03 | $11.29 | $12.17 | $11.08 | ||||||||
Total return (%) (r)(s) | (35.87 | ) | (2.42 | ) | 10.72 | 12.29 | (n) | |||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 1.40 | 1.58 | 2.69 | 12.25 | (a) | |||||||
Expenses after expense reductions (f)(h) | 1.10 | 1.17 | 1.20 | 1.20 | (a) | |||||||
Net investment income (loss) | 0.24 | (0.12 | ) | (0.14 | ) | (0.49 | )(a) | |||||
Portfolio turnover | 38 | 14 | 17 | 4 | ||||||||
Net assets at end of period (000 Omitted) | $3,717 | $5,671 | $1,330 | $306 | ||||||||
| Years ended 4/30 | ||||||||||||
| Class R2 | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $11.35 | $12.20 | $11.09 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (d) | $0.07 | $0.05 | $0.04 | $0.01 | ||||||||
Net realized and unrealized gain (loss) on investments | (4.11 | ) | (0.26 | ) | 1.19 | 1.23 | ||||||
Total from investment operations | $(4.04 | ) | $(0.21 | ) | $1.23 | $1.24 | ||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.16 | ) | $(0.18 | ) | $(0.11 | ) | $(0.15 | ) | ||||
From net realized gain on investments | (0.11 | ) | (0.46 | ) | (0.01 | ) | — | |||||
Total distributions declared to shareholders | $(0.27 | ) | $(0.64 | ) | $(0.12 | ) | $(0.15 | ) | ||||
Net asset value, end of period | $7.04 | $11.35 | $12.20 | $11.09 | ||||||||
Total return (%) (r)(s) | (35.51 | ) | (1.93 | ) | 11.18 | 12.56 | (n) | |||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 0.91 | 1.12 | 2.21 | 11.80 | (a) | |||||||
Expenses after expense reductions (f)(h) | 0.60 | 0.68 | 0.75 | 0.75 | (a) | |||||||
Net investment income | 0.89 | 0.42 | 0.35 | 0.10 | (a) | |||||||
Portfolio turnover | 38 | 14 | 17 | 4 | ||||||||
Net assets at end of period (000 Omitted) | $20,269 | $21,426 | $5,980 | $331 | ||||||||
See Notes to Financial Statements
42
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2030 FUND – continued
| Years ended 4/30 | ||||||||||||
| Class R3 | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $11.40 | $12.23 | $11.10 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (d) | $0.10 | $0.07 | $0.08 | $0.02 | ||||||||
Net realized and unrealized gain (loss) on investments | (4.15 | ) | (0.25 | ) | 1.18 | 1.24 | ||||||
Total from investment operations | $(4.05 | ) | $(0.18 | ) | $1.26 | $1.26 | ||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.17 | ) | $(0.19 | ) | $(0.12 | ) | $(0.16 | ) | ||||
From net realized gain on investments | (0.11 | ) | (0.46 | ) | (0.01 | ) | — | |||||
Total distributions declared to shareholders | $(0.28 | ) | $(0.65 | ) | $(0.13 | ) | $(0.16 | ) | ||||
Net asset value, end of period | $7.07 | $11.40 | $12.23 | $11.10 | ||||||||
Total return (%) (r)(s) | (35.40 | ) | (1.69 | ) | 11.49 | 12.72 | (n) | |||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 0.65 | 0.88 | 1.79 | 11.45 | (a) | |||||||
Expenses after expense reductions (f)(h) | 0.35 | 0.45 | 0.50 | 0.50 | (a) | |||||||
Net investment income | 1.16 | 0.61 | 0.69 | 0.33 | (a) | |||||||
Portfolio turnover | 38 | 14 | 17 | 4 | ||||||||
Net assets at end of period (000 Omitted) | $8,597 | $12,012 | $8,198 | $354 | ||||||||
| Years ended 4/30 | ||||||||||||
| Class R4 | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $11.44 | $12.28 | $11.12 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (d) | $0.04 | $0.13 | $0.09 | $0.04 | ||||||||
Net realized and unrealized gain (loss) on investments | (4.08 | ) | (0.28 | ) | 1.21 | 1.24 | ||||||
Total from investment operations | $(4.04 | ) | $(0.15 | ) | $1.30 | $1.28 | ||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.19 | ) | $(0.23 | ) | $(0.13 | ) | $(0.16 | ) | ||||
From net realized gain on investments | (0.11 | ) | (0.46 | ) | (0.01 | ) | — | |||||
Total distributions declared to shareholders | $(0.30 | ) | $(0.69 | ) | $(0.14 | ) | $(0.16 | ) | ||||
Net asset value, end of period | $7.10 | $11.44 | $12.28 | $11.12 | ||||||||
Total return (%) (r)(s) | (35.16 | ) | (1.47 | ) | 11.80 | 12.97 | (n) | |||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 0.33 | 0.60 | 1.78 | 11.15 | (a) | |||||||
Expenses after expense reductions (f)(h) | 0.10 | 0.15 | 0.20 | 0.20 | (a) | |||||||
Net investment income | 0.40 | 1.12 | 0.85 | 0.71 | (a) | |||||||
Portfolio turnover | 38 | 14 | 17 | 4 | ||||||||
Net assets at end of period (000 Omitted) | $108 | $2,321 | $63 | $56 | ||||||||
See Notes to Financial Statements
43
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2030 FUND – continued
| (a) | Annualized. |
| (c) | For the period from the commencement of the fund’s investment operations, September 29, 2005, through the stated period end. |
| (d) | Per share data is based on average shares outstanding. |
| (f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
| (h) | 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. Accordingly, the expense ratio for the fund reflects only those fees and expenses borne directly by the fund. Because the underlying funds have varied expense and fee levels and the fund may own different proportions of the underlying funds at different times, the amount of fees and expenses incurred indirectly by the fund will vary. |
| (n) | Not annualized. |
| (r) | Certain expenses have been reduced without which performance would have been lower. |
| (s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
| (t) | Total returns do not include any applicable sales charges. |
| (w) | Per share amount was less than $0.01. |
See Notes to Financial Statements
44
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2040 FUND
The financial highlights table is intended to help you understand the fund financial performance for the past 5 years (or life of a particular share class, if shorter). Certain information reflects financial results for a single fund share. The total returns in the table represent the rate by which 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.
| Years ended 4/30 | ||||||||||||
| Class A | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $11.37 | $12.27 | $11.10 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (d) | $0.06 | $0.04 | $0.04 | $0.01 | ||||||||
Net realized and unrealized gain (loss) on investments | (4.30 | ) | (0.27 | ) | 1.27 | 1.26 | ||||||
Total from investment operations | $(4.24 | ) | $(0.23 | ) | $1.31 | $1.27 | ||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.14 | ) | $(0.18 | ) | $(0.09 | ) | $(0.16 | ) | ||||
From net realized gain on investments | (0.09 | ) | (0.49 | ) | (0.05 | ) | (0.01 | ) | ||||
Total distributions declared to shareholders | $(0.23 | ) | $(0.67 | ) | $(0.14 | ) | $(0.17 | ) | ||||
Net asset value, end of period | $6.90 | $11.37 | $12.27 | $11.10 | ||||||||
Total return (%) (r)(s)(t) | (37.10 | ) | (2.12 | ) | 11.86 | 12.76 | (n) | |||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 1.01 | 1.27 | 2.75 | 11.32 | (a) | |||||||
Expenses after expense reductions (f)(h) | 0.43 | 0.45 | 0.45 | 0.45 | (a) | |||||||
Net investment income | 0.70 | 0.34 | 0.38 | 0.10 | (a) | |||||||
Portfolio turnover | 33 | 11 | 11 | 33 | ||||||||
Net assets at end of period (000 Omitted) | $3,121 | $2,978 | $3,420 | $599 | ||||||||
| Years ended 4/30 | ||||||||||||
| Class B | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $11.29 | $12.21 | $11.08 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment loss (d) | $(0.00 | )(w) | $(0.03 | ) | $(0.03 | ) | $(0.03 | ) | ||||
Net realized and unrealized gain (loss) on investments | (4.25 | ) | (0.28 | ) | 1.24 | 1.27 | ||||||
Total from investment operations | $(4.25 | ) | $(0.31 | ) | $1.21 | $1.24 | ||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.07 | ) | $(0.12 | ) | $(0.03 | ) | $(0.15 | ) | ||||
From net realized gain on investments | (0.09 | ) | (0.49 | ) | (0.05 | ) | (0.01 | ) | ||||
Total distributions declared to shareholders | $(0.16 | ) | $(0.61 | ) | $(0.08 | ) | $(0.16 | ) | ||||
Net asset value, end of period | $6.88 | $11.29 | $12.21 | $11.08 | ||||||||
Total return (%) (r)(s)(t) | (37.50 | ) | (2.72 | ) | 11.00 | 12.45 | (n) | |||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 1.66 | 1.95 | 3.57 | 11.97 | (a) | |||||||
Expenses after expense reductions (f)(h) | 1.10 | 1.10 | 1.10 | 1.10 | (a) | |||||||
Net investment loss | (0.05 | ) | (0.26 | ) | (0.27 | ) | (0.45 | )(a) | ||||
Portfolio turnover | 33 | 11 | 11 | 33 | ||||||||
Net assets at end of period (000 Omitted) | $1,072 | $1,639 | $1,124 | $466 | ||||||||
See Notes to Financial Statements
45
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2040 FUND – continued
| Years ended 4/30 | ||||||||||||
| Class C | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $11.26 | $12.23 | $11.08 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (loss) (d) | $(0.00 | )(w) | $0.01 | $(0.03 | ) | $(0.02 | ) | |||||
Net realized and unrealized gain (loss) on investments | (4.23 | ) | (0.31 | ) | 1.25 | 1.25 | ||||||
Total from investment operations | $(4.23 | ) | $(0.30 | ) | $1.22 | $1.23 | ||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.09 | ) | $(0.18 | ) | $(0.02 | ) | $(0.14 | ) | ||||
From net realized gain on investments | (0.09 | ) | (0.49 | ) | (0.05 | ) | (0.01 | ) | ||||
Total distributions declared to shareholders | $(0.18 | ) | $(0.67 | ) | $(0.07 | ) | $(0.15 | ) | ||||
Net asset value, end of period | $6.85 | $11.26 | $12.23 | $11.08 | ||||||||
Total return (%) (r)(s)(t) | (37.46 | ) | (2.69 | ) | 11.05 | 12.38 | (n) | |||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 1.68 | 1.86 | 3.57 | 11.97 | (a) | |||||||
Expenses after expense reductions (f)(h) | 1.10 | 1.10 | 1.10 | 1.10 | (a) | |||||||
Net investment income (loss) | (0.01 | ) | 0.06 | (0.31 | ) | (0.26 | )(a) | |||||
Portfolio turnover | 33 | 11 | 11 | 33 | ||||||||
Net assets at end of period (000 Omitted) | $859 | $964 | $212 | $86 | ||||||||
| Years ended 4/30 | ||||||||||||
| Class I | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $11.42 | $12.32 | $11.12 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (d) | $0.08 | $0.09 | $0.08 | $0.04 | ||||||||
Net realized and unrealized gain (loss) on investments | (4.31 | ) | (0.28 | ) | 1.27 | 1.25 | ||||||
Total from investment operations | $(4.23 | ) | $(0.19 | ) | $1.35 | $1.29 | ||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.17 | ) | $(0.22 | ) | $(0.10 | ) | $(0.16 | ) | ||||
From net realized gain on investments | (0.09 | ) | (0.49 | ) | (0.05 | ) | (0.01 | ) | ||||
Total distributions declared to shareholders | $(0.26 | ) | $(0.71 | ) | $(0.15 | ) | $(0.17 | ) | ||||
Net asset value, end of period | $6.93 | $11.42 | $12.32 | $11.12 | ||||||||
Total return (%) (r)(s) | (36.88 | ) | (1.75 | ) | 12.26 | 13.01 | (n) | |||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 0.67 | 0.95 | 2.59 | 10.97 | (a) | |||||||
Expenses after expense reductions (f)(h) | 0.10 | 0.10 | 0.10 | 0.10 | (a) | |||||||
Net investment income | 0.97 | 0.76 | 0.71 | 0.62 | (a) | |||||||
Portfolio turnover | 33 | 11 | 11 | 33 | ||||||||
Net assets at end of period (000 Omitted) | $1,225 | $1,518 | $1,004 | $582 | ||||||||
See Notes to Financial Statements
46
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2040 FUND – continued
| Years ended 4/30 | ||||||||||||
| Class R1 | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $11.26 | $12.20 | $11.08 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment loss (d) | $(0.00 | )(w) | $(0.04 | ) | $(0.05 | ) | $(0.03 | ) | ||||
Net realized and unrealized gain (loss) on investments | (4.24 | ) | (0.27 | ) | 1.26 | 1.25 | ||||||
Total from investment operations | $(4.24 | ) | $(0.31 | ) | $1.21 | $1.22 | ||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.09 | ) | $(0.14 | ) | $(0.04 | ) | $(0.13 | ) | ||||
From net realized gain on investments | (0.09 | ) | (0.49 | ) | (0.05 | ) | (0.01 | ) | ||||
Total distributions declared to shareholders | $(0.18 | ) | $(0.63 | ) | $(0.09 | ) | $(0.14 | ) | ||||
Net asset value, end of period | $6.84 | $11.26 | $12.20 | $11.08 | ||||||||
Total return (%) (r)(s) | (37.53 | ) | (2.75 | ) | 11.00 | 12.31 | (n) | |||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 1.67 | 1.97 | 3.55 | 12.17 | (a) | |||||||
Expenses after expense reductions (f)(h) | 1.10 | 1.17 | 1.20 | 1.20 | (a) | |||||||
Net investment loss | (0.01 | ) | (0.36 | ) | (0.42 | ) | (0.42 | )(a) | ||||
Portfolio turnover | 33 | 11 | 11 | 33 | ||||||||
Net assets at end of period (000 Omitted) | $2,368 | $2,645 | $752 | $127 | ||||||||
| Years ended 4/30 | ||||||||||||
| Class R2 | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $11.32 | $12.24 | $11.10 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (d) | $0.05 | $0.02 | $0.00 | (w) | $0.01 | |||||||
Net realized and unrealized gain (loss) on investments | (4.27 | ) | (0.28 | ) | 1.26 | 1.25 | ||||||
Total from investment operations | $(4.22 | ) | $(0.26 | ) | $1.26 | $1.26 | ||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.14 | ) | $(0.17 | ) | $(0.07 | ) | $(0.15 | ) | ||||
From net realized gain on investments | (0.09 | ) | (0.49 | ) | (0.05 | ) | (0.01 | ) | ||||
Total distributions declared to shareholders | $(0.23 | ) | $(0.66 | ) | $(0.12 | ) | $(0.16 | ) | ||||
Net asset value, end of period | $6.87 | $11.32 | $12.24 | $11.10 | ||||||||
Total return (%) (r)(s) | (37.14 | ) | (2.36 | ) | 11.43 | 12.70 | (n) | |||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 1.18 | 1.51 | 3.06 | 11.72 | (a) | |||||||
Expenses after expense reductions (f)(h) | 0.60 | 0.68 | 0.75 | 0.75 | (a) | |||||||
Net investment income | 0.57 | 0.16 | 0.03 | 0.08 | (a) | |||||||
Portfolio turnover | 33 | 11 | 11 | 33 | ||||||||
Net assets at end of period (000 Omitted) | $14,024 | $11,566 | $3,702 | $323 | ||||||||
See Notes to Financial Statements
47
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2040 FUND – continued
| Years ended 4/30 | ||||||||||||
| Class R3 | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $11.36 | $12.27 | $11.11 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (d) | $0.06 | $0.05 | $0.05 | $0.03 | ||||||||
Net realized and unrealized gain (loss) on investments | (4.28 | ) | (0.28 | ) | 1.25 | 1.24 | ||||||
Total from investment operations | $(4.22 | ) | $(0.23 | ) | $1.30 | $1.27 | ||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.15 | ) | $(0.19 | ) | $(0.09 | ) | $(0.15 | ) | ||||
From net realized gain on investments | (0.09 | ) | (0.49 | ) | (0.05 | ) | (0.01 | ) | ||||
Total distributions declared to shareholders | $(0.24 | ) | $(0.68 | ) | $(0.14 | ) | $(0.16 | ) | ||||
Net asset value, end of period | $6.90 | $11.36 | $12.27 | $11.11 | ||||||||
Total return (%) (r)(s) | (37.01 | ) | (2.13 | ) | 11.74 | 12.84 | (n) | |||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 0.91 | 1.28 | 2.78 | 11.37 | (a) | |||||||
Expenses after expense reductions (f)(h) | 0.35 | 0.45 | 0.50 | 0.50 | (a) | |||||||
Net investment income | 0.72 | 0.40 | 0.39 | 0.38 | (a) | |||||||
Portfolio turnover | 33 | 11 | 11 | 33 | ||||||||
Net assets at end of period (000 Omitted) | $3,507 | $5,358 | $2,371 | $169 | ||||||||
| Years ended 4/30 | ||||||||||||
| Class R4 | 2009 | 2008 | 2007 | 2006 (c) | ||||||||
Net asset value, beginning of period | $11.41 | $12.31 | $11.12 | $10.00 | ||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (d) | $0.04 | $0.10 | $0.07 | $0.04 | ||||||||
Net realized and unrealized gain (loss) on investments | (4.26 | ) | (0.29 | ) | 1.26 | 1.25 | ||||||
Total from investment operations | $(4.22 | ) | $(0.19 | ) | $1.33 | $1.29 | ||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income | $(0.17 | ) | $(0.22 | ) | $(0.09 | ) | $(0.16 | ) | ||||
From net realized gain on investments | (0.09 | ) | (0.49 | ) | (0.05 | ) | (0.01 | ) | ||||
Total distributions declared to shareholders | $(0.26 | ) | $(0.71 | ) | $(0.14 | ) | $(0.17 | ) | ||||
Net asset value, end of period | $6.93 | $11.41 | $12.31 | $11.12 | ||||||||
Total return (%) (r)(s) | (36.82 | ) | (1.79 | ) | 12.07 | 12.99 | (n) | |||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f)(h) | 0.58 | 1.06 | 2.78 | 11.07 | (a) | |||||||
Expenses after expense reductions (f)(h) | 0.10 | 0.15 | 0.20 | 0.20 | (a) | |||||||
Net investment income | 0.35 | 0.87 | 0.60 | 0.67 | (a) | |||||||
Portfolio turnover | 33 | 11 | 11 | 33 | ||||||||
Net assets at end of period (000 Omitted) | $131 | $1,455 | $63 | $56 | ||||||||
See Notes to Financial Statements
48
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2040 FUND – continued
| (a) | Annualized. |
| (c) | For the period from the commencement of the fund’s investment operations, September 29, 2005, through the stated period end. |
| (d) | Per share data is based on average shares outstanding. |
| (f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
| (h) | 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. Accordingly, the expense ratio for the fund reflects only those fees and expenses borne directly by the fund. Because the underlying funds have varied expense and fee levels and the fund may own different proportions of the underlying funds at different times, the amount of fees and expenses incurred indirectly by the fund will vary. |
| (n) | Not annualized. |
| (r) | Certain expenses have been reduced without which performance would have been lower. |
| (s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
| (t) | Total returns do not include any applicable sales charges. |
| (w) | Per share amount was less than $0.01. |
See Notes to Financial Statements
49
Table of Contents
| (1) | Business and Organization |
MFS Lifetime Retirement Income Fund, MFS Lifetime 2010 Fund, MFS Lifetime 2020 Fund, MFS Lifetime 2030 Fund, and MFS Lifetime 2040 Fund (the funds) are each a series of MFS Series Trust XII (the trust). The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company.
| (2) | Significant Accounting Policies |
General – The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Each fund is a “fund of funds”, which invests the majority of its assets in other MFS equity, fixed income, international, and money market mutual funds (underlying funds), which may have different fiscal year ends than the funds. The underlying funds, in turn, may engage in a number of investment techniques and practices, which involve certain risks. Additional information, including each underlying fund’s accounting policies, is outlined in the underlying fund’s financial statements which are available upon request.
In March 2008, FASB Statement No. 161, Disclosures about Derivative Instruments and Hedging Activities (the “Standard”) was issued, and is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008. This Standard provides enhanced disclosures about the funds’ use of and accounting for derivative instruments and the effect of derivative instruments on the funds’ results of operations and financial position. Management is evaluating the application of the Standard to the funds, and believes the impact resulting from the adoption of this Standard will be limited to expanded disclosures in the funds’ financial statements.
FASB Staff Position (FSP) 133-1 was implemented during the period. FSP 133-1 amends FAS 133 to require sellers of credit derivatives to make disclosures that will enable financial statement users to assess the potential effects of those credit derivatives on an entity’s financial position, financial performance and cash flows. There was no impact from implementing FSP 133-1 as the funds did not hold any of these credit derivatives at period end.
Investment Valuations – Open-end investment companies are generally valued at their net asset value per share. The underlying investments of open-end investment companies managed by the adviser are valued as described below. Equity securities, including restricted equity securities, are generally valued at the last sale or official closing price as provided by a third-party pricing service on the market or exchange on which they are primarily traded. For securities for which there were no sales reported that day, equity securities are generally valued at the last quoted daily bid quotation as provided by a third-party pricing service on the market or exchange on which such securities are primarily traded. For securities held short for which there were no sales reported for that day, the position is generally valued at the last quoted daily ask quotation as provided by a third-party pricing service on the market or exchange on which such securities are primarily traded. Debt instruments and floating rate loans (other than short-term instruments), including restricted debt instruments, are generally valued at an evaluated or composite bid as provided by a third-party pricing service. Short-term instruments with a maturity at issuance of 60 days or less generally are valued at amortized cost, which approximates market value. Exchange-traded options are generally valued at the last sale or official closing price as provided by a third-party pricing service on the exchange on which such options are primarily traded. Exchange-traded options for which there were no sales reported that day are generally valued at the last daily bid quotation as provided by a third-party pricing service on the exchange on which such options are primarily traded. Options not traded on an exchange are generally valued at a broker/dealer bid quotation. Foreign currency options are generally valued using an external pricing model that uses market data from a third-party source. Futures contracts are generally valued at last posted settlement price as provided by a third-party pricing service on the market on which they are primarily traded. Futures contracts for which there were no trades that day for a particular position are generally valued at the closing bid quotation as provided by a third-party pricing service on the market on which such futures contracts are primarily traded. Forward foreign currency contracts are generally valued at the mean of bid and asked prices for the time period interpolated from rates provided by a third-party pricing service for proximate time periods. Swaps are generally valued at valuations provided by a third-party pricing service. Securities and other assets generally valued on the basis of information from a third-party pricing service may also be valued at a broker/dealer bid quotation. Values obtained from pricing services can utilize both dealer-supplied valuations and electronic data processing techniques, which take into account factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics, and other market data. The values of foreign securities and other assets and liabilities expressed in foreign currencies are converted to U.S. dollars using the mean of bid and asked prices for rates provided by a third-party pricing service.
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The Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of each fund’s investments (including any fair valuation) to the adviser pursuant to valuation policies and procedures approved by the Board. If the adviser determines that reliable market quotations are not readily available, investments are valued at fair value as determined in good faith by the adviser in accordance with such procedures under the oversight of the Board of Trustees. Under each fund’s valuation policies and procedures, market quotations are not considered to be readily available for most types of debt instruments and floating rate loans and many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services. In addition, investments may be valued at fair value if the adviser determines that an investment’s value has been materially affected by events occurring after the close of the exchange or market on which the investment is principally traded (such as foreign exchange or market) and prior to the determination of the fund’s net asset value, or after the halting of trading of a specific security where trading does not resume prior to the close of the exchange or market on which the security is principally traded. Events that occur on a frequent basis after foreign markets close (such as developments in foreign markets and significant movements in the U.S. markets) and prior to the determination of the fund’s net asset value may be deemed to have a material affect on the value of securities traded in foreign markets. Accordingly, the fund’s foreign equity securities may often be valued at fair value. The adviser generally relies on third-party pricing services or other information (such as the correlation with price movements of similar securities in the same or other markets; the type, cost and investment characteristics of the security; the business and financial condition of the issuer; and trading and other market data) to assist in determining whether to fair value and at what value to fair value an investment. The value of an investment for purposes of calculating each fund’s net asset value can differ depending on the source and method used to determine value. When fair valuation is used, the value of an investment used to determine the fund’s net asset value may differ from quoted or published prices for the same investment. There can be no assurance that each fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the funds determine its net asset value per share.
Each fund adopted FASB Statement No. 157, Fair Value Measurements (the “Statement”). This Statement provides a single definition of fair value, a hierarchy for measuring fair value and expanded disclosures about fair value measurements.
Various inputs are used in determining the value of each fund’s assets or liabilities carried at market value. These inputs are categorized into three broad levels. Level 1 includes quoted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes unobservable inputs, which may include the adviser’s own assumptions in determining the fair value of investments. Other financial instruments are derivative instruments not reflected in total investments, such as futures, forwards, swap contracts and written options. The following is a summary of the levels used as of April 30, 2009 in valuing each fund’s assets or liabilities carried at market value:
| Level 1 | Level 2 | Level 3 | Total | |||||
| Lifetime Retirement Income Fund | ||||||||
| Investments in Securities | $21,203,540 | $48,000 | $— | $21,251,540 | ||||
| Other Financial Instruments | $— | $— | $— | $— | ||||
| Lifetime 2010 Fund | ||||||||
| Investments in Securities | $31,037,237 | $— | $— | $31,037,237 | ||||
| Other Financial Instruments | $— | $— | $— | $— | ||||
| Lifetime 2020 Fund | ||||||||
| Investments in Securities | $67,288,850 | $— | $— | $67,288,850 | ||||
| Other Financial Instruments | $— | $— | $— | $— | ||||
| Lifetime 2030 Fund | ||||||||
| Investments in Securities | $41,108,767 | $106,000 | $— | $41,214,767 | ||||
| Other Financial Instruments | $— | $— | $— | $— | ||||
| Lifetime 2040 Fund | ||||||||
| Investments in Securities | $26,254,722 | $39,000 | $— | $26,293,722 | ||||
| Other Financial Instruments | $— | $— | $— | $— | ||||
In April 2009, FASB Staff Position (FSP) 157-4 was issued and is effective for financial statements issued for fiscal years and interim periods ending after June 15, 2009. FSP 157-4 clarifies FAS 157 and requires an entity to evaluate certain factors to determine whether there has been a significant decrease in volume and level of activity for the asset or liability such that recent transactions and quoted prices may not be determinative of fair value and further analysis and adjustment may be necessary to estimate fair value. The FSP also requires enhanced disclosure regarding the inputs and valuation techniques used to measure fair value in those instances as well as expanded disclosure of valuation levels for major security types. Management is evaluating the application of the FSP to each fund, and believes the impact resulting from the adoption of this FSP will be limited to expanded disclosure in each fund’s financial statements.
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Repurchase Agreements – Each fund may enter into repurchase agreements with approved counterparties. Each repurchase agreement is recorded at cost. Each fund requires that the securities collateral in a repurchase transaction be transferred to a custodian. Each fund monitors, on a daily basis, the value of the collateral to ensure that its value, including accrued interest, is greater than amounts owed to each fund under each such repurchase agreement. Each fund and other funds managed by Massachusetts Financial Services Company (MFS) may utilize a joint trading account for the purpose of entering into one or more repurchase agreements.
Indemnifications – Under each fund’s organizational documents, its officers and trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to each fund. Additionally, in the normal course of business, each fund enters into agreements with service providers that may contain indemnification clauses. Each fund’s maximum exposure under these agreements is unknown as this would involve future claims that may be made against the fund that have not yet occurred.
Investment Transactions and Income – Investment transactions are recorded on the trade date. Interest income is recorded on an accrual basis. All premium and discount is amortized or accreted for financial statement purposes in accordance with U.S. generally accepted accounting principles. Distributions of income and capital gains from the underlying funds are recorded on the ex-dividend date. Recognition of net investment income by the funds is affected by the timing of the declaration of dividends by the underlying funds in which the fund invests. In determining the net gain or loss on securities sold, the cost of securities is determined on the identified cost basis.
Fees Paid Indirectly – Each fund’s custody fee may be reduced according to an arrangement that measures the value of cash deposited with the custodian by the fund. This amount, for the year ended April 30, 2009, is shown as a reduction of total expenses on the Statement of Operations.
Tax Matters and Distributions – Each fund intends to qualify as a regulated investment company, as defined under Subchapter M of the Internal Revenue Code, and to distribute all of its taxable income, including realized capital gains. As a result, no provision for federal income tax is required. Each fund’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. Foreign taxes, if any, have been accrued by each fund in the accompanying financial statements.
Distributions to shareholders are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. Certain capital accounts in the financial statements are periodically adjusted for permanent differences in order to reflect their tax character. These adjustments have no impact on net assets or net asset value per share. Temporary differences which arise from recognizing certain items of income, expense, gain or loss in different periods for financial statement and tax purposes will reverse at some time in the future. Distributions in excess of net investment income or net realized gains are temporary overdistributions for financial statement purposes resulting from differences in the recognition or classification of income or distributions for financial statement and tax purposes.
Book/tax differences primarily relate to wash sale loss deferrals, treating a portion of the proceeds from redemptions as a distribution for tax purposes, and short-term capital gain distributions received from underlying funds.
The tax character of distributions declared to shareholders for the last two fiscal years is as follows:
| Year ended 4/30/09 | Lifetime Retirement Income Fund | Lifetime 2010 Fund | Lifetime 2020 Fund | Lifetime 2030 Fund | Lifetime 2040 Fund | |||||
| Ordinary income (including any short-term capital gains) | $674,807 | $1,007,071 | $1,886,907 | $779,208 | $364,264 | |||||
| Long-term capital gain | 81,365 | 41,666 | 479,310 | 589,843 | 381,588 | |||||
| Total distributions | $756,172 | $1,048,737 | $2,366,217 | $1,369,051 | $745,852 | |||||
| Year ended 4/30/08 | Lifetime Retirement Income Fund | Lifetime 2010 Fund | Lifetime 2020 Fund | Lifetime 2030 Fund | Lifetime 2040 Fund | |||||
| Ordinary income (including any short-term capital gains) | $557,523 | $532,329 | $1,272,073 | $666,969 | $323,070 | |||||
| Long-term capital gain | 203,236 | 340,812 | 1,801,783 | 1,626,250 | 922,705 | |||||
| Total distributions | $760,759 | $873,141 | $3,073,856 | $2,293,219 | $1,245,775 | |||||
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The federal tax cost and the tax basis components of distributable earnings were as follows:
| As of 4/30/09 | MFS Lifetime Retirement Income Fund | MFS Lifetime 2010 Fund | MFS Lifetime 2020 Fund | MFS Lifetime 2030 Fund | MFS Lifetime 2040 Fund | ||||||||||
| Cost of investments | $21,869,203 | $32,702,283 | $85,539,518 | $55,389,160 | $34,848,499 | ||||||||||
| Gross appreciation | $890,787 | $1,222,298 | $562,442 | $210,711 | $197,909 | ||||||||||
| Gross depreciation | (1,508,450 | ) | (2,887,344 | ) | (18,813,110 | ) | (14,385,104 | ) | (8,752,686 | ) | |||||
| Net unrealized appreciation (depreciation) | $(617,663 | ) | $(1,665,046 | ) | $(18,250,668 | ) | $(14,174,393 | ) | $(8,554,777 | ) | |||||
| Undistributed ordinary income | $40,547 | $307,419 | $394,291 | $— | $— | ||||||||||
| Undistributed long-term capital gain | 6,219 | — | — | — | — | ||||||||||
| Post-October capital loss deferral | (1,489,221 | ) | (2,712,726 | ) | (7,489,438 | ) | (6,826,766 | ) | (3,860,228 | ) | |||||
| Other temporary differences | (56,574 | ) | (3,518 | ) | (129,012 | ) | (430,275 | ) | (392,487 | ) |
Multiple Classes of Shares of Beneficial Interest – Each fund offers multiple classes of shares, which differ in their respective distribution and service fees. For the MFS Lifetime Retirement Income Fund, income and common expenses are allocated to shareholders based on the value of settled shares outstanding of each class. For the MFS Lifetime Retirement Income fund, realized and unrealized gain (loss) are allocated to shareholders based on the daily net assets of each class. For all other funds, income, realized and unrealized gain (loss), and common expenses are allocated to shareholders based on the daily net assets of each class. Dividends are declared separately for each class. Differences in per share dividend rates are generally due to differences in separate class expenses. Class B shares will convert to Class A shares approximately eight years after purchase. The fund’s distributions declared to shareholders by class are as follows:
From net investment income
MFS Lifetime Retirement | MFS Lifetime | MFS Lifetime | ||||||||||
Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | |||||||
| Class A | $136,021 | $99,908 | $189,025 | $84,239 | $327,833 | $195,427 | ||||||
| Class B | 30,110 | 25,734 | 51,363 | 13,379 | 78,567 | 64,471 | ||||||
| Class C | 55,747 | 30,070 | 44,444 | 15,680 | 55,177 | 39,149 | ||||||
| Class I | 8,129 | 4,656 | 11,625 | 18,903 | 19,555 | 21,448 | ||||||
| Class R1 | 22,473 | 37,636 | 76,799 | 25,680 | 130,966 | 126,499 | ||||||
| Former Class R2 (b) | — | 24,308 | — | 79,054 | — | 120,863 | ||||||
| Class R2 | 215,384 | 133,091 | 460,725 | 154,404 | 899,587 | 357,503 | ||||||
| Class R3 | 198,040 | 196,494 | 170,557 | 127,682 | 372,188 | 306,748 | ||||||
| Class R4 | 3,186 | 5,626 | 2,533 | 13,308 | 3,034 | 39,965 | ||||||
| Total | $669,090 | $557,523 | $1,007,071 | $532,329 | $1,886,907 | $1,272,073 | ||||||
MFS Lifetime | MFS Lifetime | |||||||||||
Year ended | Year ended | Year ended | Year ended | |||||||||
| Class A | $93,709 | $87,990 | $52,092 | $42,314 | ||||||||
| Class B | 25,104 | 20,951 | 11,121 | 15,234 | ||||||||
| Class C | 14,655 | 8,044 | 7,099 | 12,104 | ||||||||
| Class I | 26,059 | 18,057 | 26,550 | 26,129 | ||||||||
| Class R1 | 42,373 | 37,836 | 26,512 | 17,776 | ||||||||
| Former Class R2 (b) | — | 102,286 | — | 30,658 | ||||||||
| Class R2 | 391,176 | 193,223 | 232,535 | 86,053 | ||||||||
| Class R3 | 198,288 | 167,402 | 81,571 | 72,071 | ||||||||
| Class R4 | 1,409 | 31,180 | 1,033 | 20,731 | ||||||||
| Total | $792,773 | $666,969 | $438,513 | $323,070 | ||||||||
From net realized gain on investments
MFS Lifetime Retirement | MFS Lifetime | MFS Lifetime | ||||||||||
Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | |||||||
| Class A | $16,020 | $39,482 | $7,505 | $52,075 | $77,801 | $260,537 | ||||||
| Class B | 4,842 | 8,360 | 2,389 | 11,088 | 25,327 | 116,796 | ||||||
| Class C | 11,872 | 11,942 | 1,970 | 11,890 | 16,839 | 61,502 | ||||||
| Class I | 878 | 1,909 | 423 | 10,345 | 4,178 | 24,954 | ||||||
| Class R1 | 3,540 | 15,392 | 3,657 | 19,310 | 45,224 | 190,920 | ||||||
| Former Class R2 (b) | — | 8,258 | — | 48,245 | — | 172,194 | ||||||
| Class R2 | 26,583 | 45,558 | 18,934 | 98,925 | 221,538 | 509,088 | ||||||
| Class R3 | 23,108 | 71,268 | 6,696 | 81,533 | 87,755 | 418,518 | ||||||
| Class R4 | 239 | 1,067 | 92 | 7,401 | 648 | 47,274 | ||||||
| Total | $87,082 | $203,236 | $41,666 | $340,812 | $479,310 | $1,801,783 | ||||||
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MFS Lifetime | MFS Lifetime | |||||||||||
Year ended | Year ended | Year ended | Year ended | |||||||||
| Class A | $64,327 | $205,435 | $33,896 | $119,794 | ||||||||
| Class B | 25,929 | 69,745 | 14,089 | 61,637 | ||||||||
| Class C | 12,821 | 24,897 | 7,550 | 33,773 | ||||||||
| Class I | 14,965 | 35,480 | 14,663 | 58,740 | ||||||||
| Class R1 | 51,914 | 112,908 | 27,604 | 63,374 | ||||||||
| Former Class R2 (b) | –— | 231,170 | — | 88,231 | ||||||||
| Class R2 | 276,640 | 483,469 | 157,264 | 256,406 | ||||||||
| Class R3 | 128,873 | 400,668 | 51,702 | 193,095 | ||||||||
| Class R4 | 809 | 62,478 | 571 | 47,655 | ||||||||
| Total | $576,278 | $1,626,250 | $307,339 | $922,705 | ||||||||
| (b) | At the close of business on April 18, 2008, Class R2 shares converted into Class R3 shares. Following the conversion, Class R3 shares were renamed Class R2 shares. |
| (3) | Transactions with Affiliates |
Investment Adviser – Each fund has an investment advisory agreement with MFS to provide overall investment management and related administrative services and facilities to the fund. MFS receives no compensation under this agreement; however MFS receives management fees from the underlying MFS funds.
The investment adviser has agreed in writing to pay a portion of each fund’s operating expenses, exclusive of distribution and service fees, interest, taxes, extraordinary expenses, brokerage and transaction costs and investment-related expenses, such that operating expenses do not exceed 0.10% annually of each fund’s average daily net assets. This written agreement will continue until modified by the funds’ Board of Trustees, but such agreement will continue at least until August 31, 2009. For the year ended April 30, 2009, this reduction amounted to the following for each fund and is reflected as a reduction of total expenses in the Statements of Operations:
| Lifetime Retirement Income Fund | Lifetime 2010 Fund | Lifetime 2020 Fund | Lifetime 2030 Fund | Lifetime 2040 Fund | ||||
| $147,113 | $135,546 | $112,703 | $129,288 | $140,847 |
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 a fund invests. Accordingly, the expense ratio for each fund reflects only those fees and expenses borne directly by the fund.
Distributor – MFS Fund Distributors, Inc. (MFD), a wholly-owned subsidiary of MFS, as distributor, received the following amounts for the year ended April 30, 2009, as its portion of the initial sales charge on sales of Class A shares of the fund:
| Lifetime Retirement Income Fund | Lifetime 2010 Fund | Lifetime 2020 Fund | Lifetime 2030 Fund | Lifetime 2040 Fund | ||||
| $7,603 | $4,751 | $11,691 | $5,960 | $4,378 |
The Board of Trustees has adopted a distribution plan for certain class shares pursuant to Rule 12b-1 of the Investment Company Act of 1940.
Each fund’s distribution plan provides that the fund will pay MFD for services provided by MFD and financial intermediaries in connection with the distribution and servicing of certain share classes. One component of the plan is a distribution fee paid to MFD and another component of the plan is a service fee paid to MFD. MFD may subsequently pay all, or a portion, of the distribution and/or service fees to financial intermediaries.
Distribution Plan Fee Table:
| CLASS A | ||||||||||
| Distribution Fee Rate | Service Fee Rate | Total Distribution Plan (d) | Annual Rate (e) | Distribution and Service Fee | ||||||
| Lifetime Retirement Income Fund | — | 0.25% | 0.25% | 0.33% | $11,881 | |||||
| Lifetime 2010 Fund | — | 0.25% | 0.25% | 0.33% | 17,326 | |||||
| Lifetime 2020 Fund | — | 0.25% | 0.25% | 0.33% | 34,988 | |||||
| Lifetime 2030 Fund | — | 0.25% | 0.25% | 0.34% | 16,128 | |||||
| Lifetime 2040 Fund | — | 0.25% | 0.25% | 0.33% | 8,770 | |||||
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| CLASS B | ||||||||||
| Distribution Fee Rate | Service Fee Rate | Total Distribution Plan (d) | Annual Effective Rate (e) | Distribution and Service Fee | ||||||
| Lifetime Retirement Income Fund | 0.75% | 0.25% | 1.00% | 1.00% | $9,576 | |||||
| Lifetime 2010 Fund | 0.75% | 0.25% | 1.00% | 1.00% | 16,544 | |||||
| Lifetime 2020 Fund | 0.75% | 0.25% | 1.00% | 1.00% | 36,458 | |||||
| Lifetime 2030 Fund | 0.75% | 0.25% | 1.00% | 1.00% | 18,919 | |||||
| Lifetime 2040 Fund | 0.75% | 0.25% | 1.00% | 1.00% | 12,534 | |||||
| CLASS C | ||||||||||
| Distribution Fee Rate | Service Fee Rate | Total Distribution Plan (d) | Annual Effective Rate (e) | Distribution and Service Fee | ||||||
| Lifetime Retirement Income Fund | 0.75% | 0.25% | 1.00% | 1.00% | $17,222 | |||||
| Lifetime 2010 Fund | 0.75% | 0.25% | 1.00% | 1.00% | 11,881 | |||||
| Lifetime 2020 Fund | 0.75% | 0.25% | 1.00% | 1.00% | 24,209 | |||||
| Lifetime 2030 Fund | 0.75% | 0.25% | 1.00% | 1.00% | 8,051 | |||||
| Lifetime 2040 Fund | 0.75% | 0.25% | 1.00% | 1.00% | 5,804 | |||||
| CLASS R1 | ||||||||||
| Distribution Fee Rate | Service Fee Rate | Total Distribution Plan (d) | Annual Effective Rate (e) | Distribution and Service Fee | ||||||
| Lifetime Retirement Income Fund | 0.75% | 0.25% | 1.00% | 1.00% | $7,140 | |||||
| Lifetime 2010 Fund | 0.75% | 0.25% | 1.00% | 1.00% | 25,113 | |||||
| Lifetime 2020 Fund | 0.75% | 0.25% | 1.00% | 1.00% | 74,055 | |||||
| Lifetime 2030 Fund | 0.75% | 0.25% | 1.00% | 1.00% | 43,536 | |||||
| Lifetime 2040 Fund | 0.75% | 0.25% | 1.00% | 1.00% | 23,225 | |||||
| CLASS R2 | ||||||||||
| Distribution Fee Rate | Service Fee Rate | Total Distribution Plan (d) | Annual Effective Rate (e) | Distribution and Service Fee | ||||||
| Lifetime Retirement Income Fund | 0.25% | 0.25% | 0.50% | 0.50% | $29,957 | |||||
| Lifetime 2010 Fund | 0.25% | 0.25% | 0.50% | 0.50% | 65,846 | |||||
| Lifetime 2020 Fund | 0.25% | 0.25% | 0.50% | 0.50% | 150,300 | |||||
| Lifetime 2030 Fund | 0.25% | 0.25% | 0.50% | 0.50% | 95,868 | |||||
| Lifetime 2040 Fund | 0.25% | 0.25% | 0.50% | 0.50% | 59,369 | |||||
| CLASS R3 | ||||||||||
| Distribution Fee Rate | Service Fee Rate | Total Distribution Plan (d) | Annual Effective Rate (e) | Distribution and Service Fee | ||||||
| Lifetime Retirement Income Fund | — | 0.25% | 0.25% | 0.25% | $12,878 | |||||
| Lifetime 2010 Fund | — | 0.25% | 0.25% | 0.25% | 12,195 | |||||
| Lifetime 2020 Fund | — | 0.25% | 0.25% | 0.25% | 34,950 | |||||
| Lifetime 2030 Fund | — | 0.25% | 0.25% | 0.25% | 23,917 | |||||
| Lifetime 2040 Fund | — | 0.25% | 0.25% | 0.25% | 11,072 | |||||
| Lifetime Retirement Income Fund | Lifetime 2010 Fund | Lifetime 2020 Fund | Lifetime 2030 Fund | Lifetime 2040 Fund | ||||||
| Total Distributions and Service Fees | $88,654 | $148,905 | $354,960 | $206,419 | $120,774 |
| (d) | In accordance with the distribution plan for certain classes, the fund pays distribution and/or service fees up to these annual percentage rates of each class’ average daily net assets. |
| (e) | The annual effective rates represent actual fees incurred under the distribution plan for the year ended April 30, 2009 based on each class’ average daily net assets. Effective March 1, 2009, the 0.10% Class A annual distribution fee was eliminated for all funds. Prior to March 1, 2009, the 0.10% Class A annual distribution fee was paid by all funds. |
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Certain Class A shares purchased prior to September 1, 2008 are subject to a contingent deferred sales charge (CDSC) in the event of a shareholder redemption within 12 months of purchase. Certain Class A shares purchased on or subsequent to September 1, 2008 are subject to a CDSC in the event of a shareholder redemption within 24 months of purchase. Class C shares are subject to a CDSC in the event of a shareholder redemption within 12 months of purchase. Class B shares are subject to a CDSC in the event of a shareholder redemption within six years of purchase. All contingent deferred sales charges are paid to MFD and during the year ended April 30, 2009, were as follows:
| CDSC imposed | Lifetime Retirement Income Fund | Lifetime 2010 Fund | Lifetime 2020 Fund | Lifetime 2030 Fund | Lifetime 2040 Fund | |||||
| Class A | $— | $— | $85 | $17 | $4 | |||||
| Class B | 2,023 | 3,929 | 6,850 | 4,487 | 4,424 | |||||
| Class C | 374 | 158 | 992 | 336 | 436 |
Shareholder Servicing Agent – MFS Service Center, Inc. (MFSC), a wholly-owned subsidiary of MFS, provides shareholder services and transfer agent services to the funds. Under a Special Servicing Agreement among MFS, each MFS fund which invests in other MFS funds (“MFS fund-of-funds”) and the underlying funds (other than the MFS Global Real Estate Fund), in which a MFS fund-of-funds invests (“underlying funds”), each underlying fund may pay a portion of each MFS fund-of-fund’s transfer agent-related expenses, including out-of-pocket and sub-accounting fees, to the extent such payments do not exceed the benefits realized or expected to be realized by the underlying fund from the investment in the underlying fund by the MFS fund-of-fund.
Administrator – MFS provides certain financial, legal, shareholder communications, compliance, and other administrative services to each fund. Under an administrative services agreement, each fund partially reimburses MFS the costs incurred to provide these services. Each fund pays an annual fixed amount of $17,500.
The administrative services fee incurred for the year ended April 30, 2009 was equivalent to the following annual effective rates of each fund’s average daily net assets:
| Lifetime Retirement Income Fund | Lifetime 2010 Fund | Lifetime 2020 Fund | Lifetime 2030 Fund | Lifetime 2040 Fund | ||||
| 0.0951% | 0.0599% | 0.0253% | 0.0414% | 0.0707% |
Trustees’ and Officers’ Compensation – Each fund pays compensation to independent trustees in the form of a retainer, attendance fees, and additional compensation to Board and Committee chairpersons. Each fund does not pay compensation directly to trustees or officers of the fund who are also officers of the investment adviser, all of whom receive remuneration for their services to the fund from MFS. Certain officers and trustees of the fund are officers or directors of MFS, MFD, and MFSC.
Other – Each fund and certain other MFS funds (the funds) have entered into services agreements (the Agreements) which provide for payment of fees by the funds to Tarantino LLC and Griffin Compliance LLC in return for the provision of services of an Independent Chief Compliance Officer (ICCO) and Assistant ICCO, respectively, for the funds. The ICCO and Assistant ICCO are officers of the funds and the sole members of Tarantino LLC and Griffin Compliance LLC, respectively. The funds can terminate the Agreements with Tarantino LLC and Griffin Compliance LLC at any time under the terms of the Agreements. For the year ended April 30, 2009, the aggregate fees paid by the fund to Tarantino LLC and Griffin Compliance LLC which are included in miscellaneous expense on the Statements of Operations were:
| Lifetime Retirement Income Fund | Lifetime 2010 Fund | Lifetime 2020 Fund | Lifetime 2030 Fund | Lifetime 2040 Fund | ||||
| $208 | $328 | $763 | $461 | $273 |
MFS has agreed to reimburse the fund for a portion of the payments made by the fund in the following amounts, which is shown as a reduction of total expenses in the Statements of Operations. Additionally, MFS has agreed to bear all expenses associated with office space, other administrative support, and supplies provided to the ICCO and Assistant ICCO.
| Lifetime Retirement Income Fund | Lifetime 2010 Fund | Lifetime 2020 Fund | Lifetime 2030 Fund | Lifetime 2040 Fund | ||||
| $107 | $169 | $402 | $248 | $145 |
| (4) | Portfolio Securities |
Purchases and sales of underlying funds aggregated to the following:
| Lifetime Retirement Income Fund | Lifetime 2010 Fund | Lifetime 2020 Fund | Lifetime 2030 Fund | Lifetime 2040 Fund | ||||||
| Purchases | $15,446,334 | $22,944,666 | $42,658,341 | $25,972,550 | $18,646,512 | |||||
| Sales | $10,766,832 | $18,111,714 | $26,728,398 | $16,161,103 | $8,285,331 |
56
Table of Contents
Notes to Financial Statements – continued
| (5) | Shares of Beneficial Interest |
Each fund’s Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest. Transactions in fund shares were as follows:
| MFS Lifetime Retirement Income Fund | MFS Lifetime 2010 Fund | |||||||||||||||||||||||
| Year ended 4/30/09 | Year ended 4/30/08 | Year ended 4/30/09 | Year ended 4/30/08 | |||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||
| Shares sold | ||||||||||||||||||||||||
Class A | 396,113 | $3,511,852 | 307,084 | $3,165,815 | 323,589 | $3,083,120 | 545,766 | $6,047,548 | ||||||||||||||||
Class B | 125,002 | 1,104,623 | 51,287 | 524,465 | 100,921 | 970,654 | 108,798 | 1,189,173 | ||||||||||||||||
Class C | 302,896 | 2,647,723 | 49,728 | 511,292 | 168,342 | 1,572,455 | 52,198 | 580,301 | ||||||||||||||||
Class I | 5,942 | 55,413 | 15,823 | 163,138 | 10,644 | 100,714 | 66,852 | 768,664 | ||||||||||||||||
Class R1 | 58,009 | 548,944 | 123,645 | 1,281,653 | 120,640 | 1,205,664 | 197,890 | 2,154,735 | ||||||||||||||||
Former Class R2 (b) | — | — | 101,204 | 1,040,535 | — | — | 406,457 | 4,545,368 | ||||||||||||||||
Class R2 | 235,719 | 2,169,550 | 664,066 | 6,824,692 | 637,076 | 6,294,205 | 1,092,107 | 12,028,035 | ||||||||||||||||
Class R3 | 148,147 | 1,343,728 | 989,154 | 10,116,109 | 347,904 | 3,571,648 | 305,363 | 3,384,482 | ||||||||||||||||
Class R4 | 3,881 | 38,205 | 33,592 | 342,411 | 11,784 | 118,303 | 58,446 | 650,099 | ||||||||||||||||
| 1,275,709 | $11,420,038 | 2,335,583 | $23,970,110 | 1,720,900 | $16,916,763 | 2,833,877 | $31,348,405 | |||||||||||||||||
| Shares issued to shareholders in reinvestment of distributions | ||||||||||||||||||||||||
Class A | 13,569 | $121,861 | 11,286 | $115,638 | 20,551 | $185,163 | 11,777 | $130,490 | ||||||||||||||||
Class B | 3,187 | 28,387 | 2,925 | 30,009 | 5,618 | 50,398 | 1,870 | 20,627 | ||||||||||||||||
Class C | 6,121 | 53,810 | 3,329 | 34,152 | 3,347 | 29,854 | 2,132 | 23,478 | ||||||||||||||||
Class I | 998 | 9,008 | 640 | 6,540 | 1,334 | 12,048 | 2,633 | 29,247 | ||||||||||||||||
Class R1 | 2,890 | 25,827 | 5,146 | 52,957 | 9,030 | 80,456 | 4,097 | 44,990 | ||||||||||||||||
Former Class R2 (b) | — | — | 3,014 | 30,912 | — | — | 11,573 | 127,299 | ||||||||||||||||
Class R2 | 26,621 | 240,220 | 17,437 | 178,457 | 53,593 | 479,659 | 22,988 | 253,328 | ||||||||||||||||
Class R3 | 24,485 | 221,030 | 26,014 | 266,824 | 19,695 | 177,252 | 18,899 | 209,215 | ||||||||||||||||
Class R4 | 352 | 3,250 | 652 | 6,693 | 291 | 2,625 | 1,866 | 20,709 | ||||||||||||||||
| 78,223 | $703,393 | 70,443 | $722,182 | 113,459 | $1,017,455 | 77,835 | $859,383 | |||||||||||||||||
| Shares reacquired | ||||||||||||||||||||||||
Class A | (197,254 | ) | $(1,765,833 | ) | (170,296 | ) | $(1,754,922 | ) | (182,324 | ) | $(1,766,090 | ) | (350,193 | ) | $(3,899,175 | ) | ||||||||
Class B | (51,605 | ) | (456,329 | ) | (38,616 | ) | (394,604 | ) | (64,588 | ) | (602,493 | ) | (27,446 | ) | (302,773 | ) | ||||||||
Class C | (99,413 | ) | (873,472 | ) | (25,682 | ) | (262,871 | ) | (31,039 | ) | (296,683 | ) | (14,818 | ) | (162,964 | ) | ||||||||
Class I | (5,030 | ) | (43,673 | ) | (2,876 | ) | (29,585 | ) | (20,457 | ) | (194,100 | ) | (71,370 | ) | (806,131 | ) | ||||||||
Class R1 | (47,979 | ) | (429,320 | ) | (177,172 | ) | (1,828,184 | ) | (73,891 | ) | (728,026 | ) | (52,382 | ) | (572,665 | ) | ||||||||
Former Class R2 (b) | — | — | (136,682 | ) | (1,388,919 | ) | — | — | (494,664 | ) | (5,398,258 | ) | ||||||||||||
Class R2 | (228,746 | ) | (2,109,101 | ) | (163,920 | ) | (1,691,958 | ) | (493,779 | ) | (4,684,475 | ) | (160,849 | ) | (1,775,234 | ) | ||||||||
Class R3 | (165,609 | ) | (1,478,803 | ) | (522,157 | ) | (5,371,343 | ) | (405,514 | ) | (4,193,689 | ) | (219,630 | ) | (2,411,912 | ) | ||||||||
Class R4 | (14,886 | ) | (147,151 | ) | (22,510 | ) | (229,350 | ) | (53,588 | ) | (574,930 | ) | (12,627 | ) | (138,252 | ) | ||||||||
| (810,522 | ) | $(7,303,682 | ) | (1,259,911 | ) | $(12,951,736 | ) | (1,325,180 | ) | $(13,040,486 | ) | (1,403,979 | ) | $(15,467,364 | ) | |||||||||
| Net change | ||||||||||||||||||||||||
Class A | 212,428 | $1,867,880 | 148,074 | $1,526,531 | 161,816 | $1,502,193 | 207,350 | $2,278,863 | ||||||||||||||||
Class B | 76,584 | 676,681 | 15,596 | 159,870 | 41,951 | 418,559 | 83,222 | 907,027 | ||||||||||||||||
Class C | 209,604 | 1,828,061 | 27,375 | 282,573 | 140,650 | 1,305,626 | 39,512 | 440,815 | ||||||||||||||||
Class I | 1,910 | 20,748 | 13,587 | 140,093 | (8,479 | ) | (81,338 | ) | (1,885 | ) | (8,220 | ) | ||||||||||||
Class R1 | 12,920 | 145,451 | (48,381 | ) | (493,574 | ) | 55,779 | 558,094 | 149,605 | 1,627,060 | ||||||||||||||
Former Class R2 (b) | — | — | (32,464 | ) | (317,472 | ) | — | — | (76,634 | ) | (725,591 | ) | ||||||||||||
Class R2 | 33,594 | 300,669 | 517,583 | 5,311,191 | 196,890 | 2,089,389 | 954,246 | 10,506,129 | ||||||||||||||||
Class R3 | 7,023 | 85,955 | 493,011 | 5,011,590 | (37,915 | ) | (444,789 | ) | 104,632 | 1,181,785 | ||||||||||||||
Class R4 | (10,653 | ) | (105,696 | ) | 11,734 | 119,754 | (41,513 | ) | (454,002 | ) | 47,685 | 532,556 | ||||||||||||
| 543,410 | $4,819,749 | 1,146,115 | $11,740,556 | 509,179 | $4,893,732 | 1,507,733 | $16,740,424 | |||||||||||||||||
57
Table of Contents
Notes to Financial Statements – continued
| MFS Lifetime 2020 Fund | MFS Lifetime 2030 Fund | |||||||||||||||||||||||
| Year ended 4/30/09 | Year ended 4/30/08 | Year ended 4/30/09 | Year ended 4/30/08 | |||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||
| Shares sold | ||||||||||||||||||||||||
Class A | 615,350 | $5,298,391 | 1,006,334 | $11,865,949 | 282,962 | $2,256,249 | 539,190 | $6,543,114 | ||||||||||||||||
Class B | 153,319 | 1,338,106 | 213,709 | 2,483,876 | 96,159 | 844,918 | 128,883 | 1,530,278 | ||||||||||||||||
Class C | 227,471 | 1,882,519 | 145,178 | 1,716,052 | 105,605 | 800,794 | 40,642 | 476,917 | ||||||||||||||||
Class I | 19,357 | 169,811 | 105,105 | 1,287,456 | 62,734 | 522,279 | 134,144 | 1,656,384 | ||||||||||||||||
Class R1 | 466,813 | 4,238,599 | 779,387 | 8,966,851 | 257,407 | 2,157,203 | 525,074 | 5,946,229 | ||||||||||||||||
Former Class R2 (b) | — | — | 693,163 | 8,103,412 | — | — | 577,236 | 6,984,893 | ||||||||||||||||
Class R2 | 1,907,752 | 17,344,761 | 2,288,467 | 26,427,719 | 1,508,715 | 12,390,332 | 1,809,683 | 21,323,994 | ||||||||||||||||
Class R3 | 808,423 | 8,185,742 | 761,623 | 9,003,295 | 542,596 | 4,752,016 | 495,346 | 5,846,434 | ||||||||||||||||
Class R4 | 37,271 | 347,917 | 217,854 | 2,545,380 | 67,823 | 707,072 | 202,783 | 2,414,689 | ||||||||||||||||
| 4,235,756 | $38,805,846 | 6,210,820 | $72,399,990 | 2,924,001 | $24,430,863 | 4,452,981 | $52,722,932 | |||||||||||||||||
| Shares issued to shareholders in reinvestment of distributions | ||||||||||||||||||||||||
Class A | 51,113 | $391,522 | 38,423 | $449,552 | 23,010 | $155,548 | 24,066 | $286,865 | ||||||||||||||||
Class B | 12,927 | 98,761 | 14,830 | 172,619 | 7,122 | 47,932 | 7,650 | 90,651 | ||||||||||||||||
Class C | 6,818 | 51,821 | 6,540 | 75,859 | 2,819 | 18,944 | 2,211 | 26,239 | ||||||||||||||||
Class I | 3,090 | 23,733 | 3,956 | 46,402 | 6,060 | 41,024 | 4,480 | 53,537 | ||||||||||||||||
Class R1 | 23,152 | 176,190 | 27,386 | 317,408 | 14,010 | 94,287 | 12,753 | 150,744 | ||||||||||||||||
Former Class R2 (b) | — | — | 25,198 | 293,057 | — | — | 28,140 | 333,456 | ||||||||||||||||
Class R2 | 146,937 | 1,121,125 | 74,113 | 864,156 | 99,377 | 667,816 | 55,424 | 657,325 | ||||||||||||||||
Class R3 | 60,045 | 459,943 | 61,989 | 725,266 | 48,468 | 327,161 | 47,737 | 568,070 | ||||||||||||||||
Class R4 | 480 | 3,682 | 7,444 | 87,239 | 328 | 2,218 | 7,844 | 93,658 | ||||||||||||||||
| 304,562 | $2,326,777 | 259,879 | $3,031,558 | 201,194 | $1,354,930 | 190,305 | $2,260,545 | |||||||||||||||||
| Shares reacquired | ||||||||||||||||||||||||
Class A | (249,051 | ) | $(1,974,693 | ) | (781,105 | ) | $(9,219,411 | ) | (170,632 | ) | $(1,389,921 | ) | (433,176 | ) | $(5,278,602 | ) | ||||||||
Class B | (157,434 | ) | (1,337,108 | ) | (127,175 | ) | (1,451,724 | ) | (50,579 | ) | (406,890 | ) | (46,796 | ) | (550,155 | ) | ||||||||
Class C | (74,095 | ) | (672,449 | ) | (24,206 | ) | (277,126 | ) | (39,481 | ) | (285,993 | ) | (9,074 | ) | (105,449 | ) | ||||||||
Class I | (2,277 | ) | (20,446 | ) | (100,093 | ) | (1,211,603 | ) | (21,325 | ) | (200,671 | ) | (131,344 | ) | (1,660,456 | ) | ||||||||
Class R1 | (430,168 | ) | (3,735,483 | ) | (227,560 | ) | (2,519,744 | ) | (245,405 | ) | (1,883,668 | ) | (144,713 | ) | (1,620,985 | ) | ||||||||
Former Class R2 (b) | — | — | (938,138 | ) | (10,693,674 | ) | — | — | (697,911 | ) | (7,901,400 | ) | ||||||||||||
Class R2 | (868,547 | ) | (7,415,937 | ) | (521,256 | ) | (6,013,770 | ) | (616,667 | ) | (5,059,102 | ) | (467,520 | ) | (5,543,722 | ) | ||||||||
Class R3 | (832,476 | ) | (7,850,552 | ) | (357,711 | ) | (4,214,823 | ) | (429,607 | ) | (3,880,755 | ) | (159,557 | ) | (1,887,305 | ) | ||||||||
Class R4 | (212,448 | ) | (2,273,323 | ) | (30,199 | ) | (346,695 | ) | (255,910 | ) | (2,691,950 | ) | (12,862 | ) | (146,244 | ) | ||||||||
| (2,826,496 | ) | $(25,279,991 | ) | (3,107,443 | ) | $(35,948,570 | ) | (1,829,606 | ) | $(15,798,950 | ) | (2,102,953 | ) | $(24,694,318 | ) | |||||||||
| Net change | ||||||||||||||||||||||||
Class A | 417,412 | $3,715,220 | 263,652 | $3,096,090 | 135,340 | $1,021,876 | 130,080 | $1,551,377 | ||||||||||||||||
Class B | 8,812 | 99,759 | 101,364 | 1,204,771 | 52,702 | 485,960 | 89,737 | 1,070,774 | ||||||||||||||||
Class C | 160,194 | 1,261,891 | 127,512 | 1,514,785 | 68,943 | 533,745 | 33,779 | 397,707 | ||||||||||||||||
Class I | 20,170 | 173,098 | 8,968 | 122,255 | 47,469 | 362,632 | 7,280 | 49,465 | ||||||||||||||||
Class R1 | 59,797 | 679,306 | 579,213 | 6,764,515 | 26,012 | 367,822 | 393,114 | 4,475,988 | ||||||||||||||||
Former Class R2 (b) | — | — | (219,777 | ) | (2,297,205 | ) | — | — | (92,535 | ) | (583,051 | ) | ||||||||||||
Class R2 | 1,186,142 | 11,049,949 | 1,841,324 | 21,278,105 | 991,425 | 7,999,046 | 1,397,587 | 16,437,597 | ||||||||||||||||
Class R3 | 35,992 | 795,133 | 465,901 | 5,513,738 | 161,457 | 1,198,422 | 383,526 | 4,527,199 | ||||||||||||||||
Class R4 | (174,697 | ) | (1,921,724 | ) | 195,099 | 2,285,924 | (187,759 | ) | (1,982,660 | ) | 197,765 | 2,362,103 | ||||||||||||
| 1,713,822 | $15,852,632 | 3,363,256 | $39,482,978 | 1,295,589 | $9,986,843 | 2,540,333 | $30,289,159 | |||||||||||||||||
58
Table of Contents
Notes to Financial Statements – continued
| MFS Lifetime 2040 Fund | ||||||||||||
| Year ended 4/30/09 | Year ended 4/30/08 | |||||||||||
| Shares | Amount | Shares | Amount | |||||||||
| Shares sold | ||||||||||||
Class A | 244,596 | $1,850,601 | 317,514 | $3,875,039 | ||||||||
Class B | 44,188 | 354,172 | 77,581 | 930,393 | ||||||||
Class C | 96,207 | 681,278 | 75,733 | 919,077 | ||||||||
Class I | 72,841 | 616,402 | 166,025 | 2,095,780 | ||||||||
Class R1 | 172,964 | 1,378,262 | 185,155 | 2,118,438 | ||||||||
Former Class R2 (b) | — | — | 282,246 | 3,291,817 | ||||||||
Class R2 | 1,305,580 | 10,543,348 | 886,542 | 10,288,992 | ||||||||
Class R3 | 300,117 | 2,591,778 | 373,353 | 4,501,956 | ||||||||
Class R4 | 25,627 | 220,812 | 127,135 | 1,527,690 | ||||||||
| 2,262,120 | $18,236,653 | 2,491,284 | $29,549,182 | |||||||||
Shares issued to shareholders in reinvestment of distributions | ||||||||||||
Class A | 12,541 | $82,393 | 13,122 | $156,153 | ||||||||
Class B | 3,568 | 23,445 | 6,068 | 71,911 | ||||||||
Class C | 1,640 | 10,707 | 3,551 | 41,942 | ||||||||
Class I | 6,254 | 41,213 | 7,108 | 84,869 | ||||||||
Class R1 | 8,287 | 54,116 | 6,871 | 81,150 | ||||||||
Former Class R2 (b) | — | — | 10,041 | 118,889 | ||||||||
Class R2 | 59,602 | 389,799 | 28,072 | 332,938 | ||||||||
Class R3 | 20,285 | 133,273 | 22,302 | 265,165 | ||||||||
Class R4 | 243 | 1,604 | 5,732 | 68,386 | ||||||||
| 112,420 | $736,550 | 102,867 | $1,221,403 | |||||||||
Shares reacquired | ||||||||||||
Class A | (67,092 | ) | $(600,960 | ) | (347,477 | ) | $(4,267,131 | ) | ||||
Class B | (37,131 | ) | (288,566 | ) | (30,522 | ) | (350,723 | ) | ||||
Class C | (58,115 | ) | (591,185 | ) | (10,968 | ) | (130,186 | ) | ||||
Class I | (35,240 | ) | (262,380 | ) | (121,700 | ) | (1,549,015 | ) | ||||
Class R1 | (70,207 | ) | (546,125 | ) | (18,616 | ) | (210,226 | ) | ||||
Former Class R2 (b) | — | — | (348,431 | ) | (3,968,426 | ) | ||||||
Class R2 | (344,889 | ) | (2,658,628 | ) | (195,722 | ) | (2,246,095 | ) | ||||
Class R3 | (283,677 | ) | (2,096,271 | ) | (117,384 | ) | (1,421,947 | ) | ||||
Class R4 | (134,459 | ) | (1,403,308 | ) | (10,486 | ) | (125,387 | ) | ||||
| (1,030,810 | ) | $(8,447,423 | ) | (1,201,306 | ) | $(14,269,136 | ) | |||||
Net change | ||||||||||||
Class A | 190,045 | $1,332,034 | (16,841 | ) | $(235,939 | ) | ||||||
Class B | 10,625 | 89,051 | 53,127 | 651,581 | ||||||||
Class C | 39,732 | 100,800 | 68,316 | 830,833 | ||||||||
Class I | 43,855 | 395,235 | 51,433 | 631,634 | ||||||||
Class R1 | 111,044 | 886,253 | 173,410 | 1,989,362 | ||||||||
Former Class R2 (b) | — | — | (56,144 | ) | (557,720 | ) | ||||||
Class R2 | 1,020,293 | 8,274,519 | 718,892 | 8,375,835 | ||||||||
Class R3 | 36,725 | 628,780 | 278,271 | 3,345,174 | ||||||||
Class R4 | (108,589 | ) | (1,180,892 | ) | 122,381 | 1,470,689 | ||||||
| 1,343,730 | $10,525,780 | 1,392,845 | $16,501,449 | |||||||||
| (b) | At the close of business on April 18, 2008, Class R2 shares converted into Class R3 shares. Following the conversion, Class R3 shares were renamed Class R2 shares. |
59
Table of Contents
Notes to Financial Statements – continued
| (6) | Line of Credit |
Each fund and certain other funds managed by MFS participate in a $1.1 billion unsecured committed line of credit, subject to a $1 billion sublimit, provided by a syndication of banks under a credit agreement. Borrowings may be made for temporary financing needs. Interest is charged to each fund, based on its borrowings, generally at a rate equal to the higher of the Federal Reserve funds rate or one month LIBOR plus 1.25%. A commitment fee, based on the average daily, unused portion of the committed line of credit, is allocated among the participating funds at the end of each calendar quarter. In addition, each fund and other funds managed by MFS have established unsecured uncommitted borrowing arrangements with certain banks for temporary financing needs. Interest is charged to each fund, based on its borrowings, currently at a rate equal to the Federal Reserve funds rate plus 0.30%. For the year ended April 30, 2009, each fund’s commitment fee and interest expense was equal to the following and is included in miscellaneous expense on the Statement of Operations.
Lifetime Retirement Income Fund | Lifetime 2010 Fund | Lifetime 2020 Fund | Lifetime 2030 Fund | Lifetime 2040 Fund | ||||||
| Commitment Fee | $188 | $294 | $667 | $409 | $246 | |||||
| Interest Expense | $— | $— | $— | $— | $— |
| (7) | Transactions in Underlying Funds-Affiliated Issuers |
An affiliated issuer 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. For the purposes of this report, the fund assumes the following to be affiliated issuers:
| MFS Lifetime Retirement Income Fund | ||||||||
Underlying Funds | Beginning Share/Par Amount | Acquisitions Share/Par Amount | Dispositions Share/Par Amount | Ending Share/Par Amount | ||||
MFS Core Growth Fund | — | 35,746 | (3,145) | 32,601 | ||||
MFS Diversified Target Return Fund | — | 58,755 | (2,330) | 56,425 | ||||
MFS Emerging Markets Debt Fund | — | 53,559 | (1,021) | 52,538 | ||||
MFS Global Real Estate Fund | — | 22,753 | (6,308) | 16,445 | ||||
MFS Floating Rate High Income Fund | 203,790 | 134,038 | (337,828) | — | ||||
MFS Government Securities Fund | 189,094 | 72,231 | (52,321) | 209,004 | ||||
MFS High Income Fund | — | 252,921 | (4,227) | 248,694 | ||||
MFS Inflation-Adjusted Bond Fund | 178,359 | 85,916 | (47,238) | 217,037 | ||||
MFS International Growth Fund | — | 14,276 | (1,337) | 12,939 | ||||
MFS International Value Fund | — | 13,399 | (1,321) | 12,078 | ||||
MFS Limited Maturity Fund | 586,253 | 279,925 | (149,001) | 717,177 | ||||
MFS Mid Cap Growth Fund | — | 133,420 | (15,607) | 117,813 | ||||
MFS Mid Cap Value Fund | — | 96,995 | (14,789) | 82,206 | ||||
MFS Money Market Fund | 1,832,619 | 424,235 | (2,256,854) | — | ||||
MFS New Discovery Fund | — | 35,535 | (3,230) | 32,305 | ||||
MFS Research Bond Fund | 376,036 | 289,394 | (78,544) | 586,886 | ||||
MFS Research Fund | 70,143 | 102,353 | (60,838) | 111,658 | ||||
MFS Research International Fund | — | 69,058 | (7,607) | 61,451 | ||||
MFS Value Fund | 72,304 | 96,349 | (143,119) | 25,534 | ||||
60
Table of Contents
Notes to Financial Statements – continued
| MFS Lifetime Retirement Income Fund – continued | ||||||||
Underlying Funds | Realized Gain (Loss) | Capital Gain Distributions | Dividend Income | Ending Value | ||||
MFS Core Growth Fund | $1,865 | $— | $— | $426,749 | ||||
MFS Diversified Target Return Fund | 449 | — | — | 432,213 | ||||
MFS Emerging Markets Debt Fund | 50 | — | 5,403 | 634,661 | ||||
MFS Global Real Estate Fund | 7,538 | — | — | 218,724 | ||||
MFS Floating Rate High Income Fund | (643,648) | — | 109,628 | — | ||||
MFS Government Securities Fund | 12,051 | — | 84,254 | 2,096,314 | ||||
MFS High Income Fund | 96 | — | 7,165 | 649,092 | ||||
MFS Inflation-Adjusted Bond Fund | (8,837) | — | 75,792 | 2,079,210 | ||||
MFS International Growth Fund | 1,282 | — | — | 217,503 | ||||
MFS International Value Fund | 1,530 | — | — | 217,525 | ||||
MFS Limited Maturity Fund | (67,596) | — | 182,136 | 4,217,003 | ||||
MFS Mid Cap Growth Fund | 4,092 | — | — | 644,435 | ||||
MFS Mid Cap Value Fund | 6,682 | — | — | 646,142 | ||||
MFS Money Market Fund | — | — | 21,873 | — | ||||
MFS New Discovery Fund | 1,544 | — | — | 437,415 | ||||
MFS Research Bond Fund | (69,252) | — | 225,882 | 5,276,103 | ||||
MFS Research Fund | (551,865) | — | 24,406 | 1,931,675 | ||||
MFS Research International Fund | 5,385 | — | — | 652,614 | ||||
MFS Value Fund | (1,110,422) | — | 32,766 | 426,162 | ||||
| $(2,409,056) | $— | $769,305 | $21,203,540 | |||||
| MFS Lifetime 2010 Fund | ||||||||
Underlying Funds | Beginning Share/Par Amount | Acquisitions Share/Par Amount | Dispositions Share/Par Amount | Ending Share/Par Amount | ||||
MFS Core Growth Fund | 35,428 | 56,261 | (17,503) | 74,186 | ||||
MFS Diversified Target Return Fund | — | 84,310 | (1,920) | 82,390 | ||||
MFS Emerging Markets Debt Fund | — | 91,392 | (44) | 91,348 | ||||
MFS Floating Rate High Income Fund | 173,851 | 154,214 | (328,065) | — | ||||
MFS Global Real Estate Fund | — | 29,984 | (5,266) | 24,718 | ||||
MFS Government Securities Fund | 312,050 | 116,343 | (122,804) | 305,589 | ||||
MFS High Income Fund | — | 435,245 | (2,537) | 432,708 | ||||
MFS Inflation-Adjusted Bond Fund | 152,225 | 211,649 | (45,906) | 317,968 | ||||
MFS International Growth Fund | — | 25,357 | (1,222) | 24,135 | ||||
MFS International Value Fund | — | 24,062 | (1,611) | 22,451 | ||||
MFS Limited Maturity Fund | 969,051 | 374,543 | (443,372) | 900,222 | ||||
MFS Mid Cap Growth Fund | — | 203,054 | (14,597) | 188,457 | ||||
MFS Mid Cap Value Fund | — | 147,886 | (15,668) | 132,218 | ||||
MFS Money Market Fund | 3,033,129 | 618,703 | (3,651,832) | — | ||||
MFS New Discovery Fund | — | 56,797 | (9,073) | 47,724 | ||||
MFS Research Bond Fund | 620,272 | 399,003 | (208,145) | 811,130 | ||||
MFS Research Fund | 144,365 | 124,716 | (116,558) | 152,523 | ||||
MFS Research International Fund | 37,589 | 81,318 | (21,197) | 97,710 | ||||
MFS Value Fund | 148,932 | 122,435 | (212,995) | 58,372 | ||||
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Notes to Financial Statements – continued
| MFS Lifetime 2010 Fund – continued | ||||||||
Underlying Funds | Realized Gain (Loss) | Capital Gain Distributions | Dividend Income | Ending Value | ||||
MFS Core Growth Fund | $(109,296) | $38,337 | $459 | $971,091 | ||||
MFS Diversified Target Return Fund | 255 | — | — | 631,104 | ||||
MFS Emerging Markets Debt Fund | 14 | — | 8,893 | 1,103,478 | ||||
MFS Floating Rate High Income Fund | (639,185) | — | 103,735 | — | ||||
MFS Global Real Estate Fund | 7,081 | — | — | 328,751 | ||||
MFS Government Securities Fund | 25,118 | — | 133,790 | 3,065,053 | ||||
MFS High Income Fund | 93 | — | 14,635 | 1,129,368 | ||||
MFS Inflation-Adjusted Bond Fund | (7,013) | — | 76,179 | 3,046,130 | ||||
MFS International Growth Fund | 1,078 | — | — | 405,712 | ||||
MFS International Value Fund | 1,793 | — | — | 404,336 | ||||
MFS Limited Maturity Fund | (191,800) | — | 282,994 | 5,293,308 | ||||
MFS Mid Cap Growth Fund | 4,249 | — | — | 1,030,859 | ||||
MFS Mid Cap Value Fund | 8,442 | — | — | 1,039,233 | ||||
MFS Money Market Fund | — | — | 36,297 | — | ||||
MFS New Discovery Fund | 11,113 | — | — | 646,185 | ||||
MFS Research Bond Fund | (153,252) | — | 356,264 | 7,292,061 | ||||
MFS Research Fund | (1,063,893) | — | 42,023 | 2,638,654 | ||||
MFS Research International Fund | (177,823) | 9,711 | 11,370 | 1,037,684 | ||||
MFS Value Fund | (2,105,017) | — | 61,803 | 974,230 | ||||
| $(4,388,043) | $48,048 | $1,128,442 | $31,037,237 | |||||
| MFS Lifetime 2020 Fund | ||||||||
Underlying Funds | Beginning Share/Par Amount | Acquisitions Share/Par Amount | Dispositions Share/Par Amount | Ending Share/Par Amount | ||||
MFS Core Growth Fund | 457,330 | 167,190 | (116,301) | 508,219 | ||||
MFS Diversified Target Return Fund | — | 89,675 | (398) | 89,277 | ||||
MFS Emerging Markets Debt Fund | — | 277,903 | (823) | 277,080 | ||||
MFS Emerging Markets Equity Fund | — | 10,373 | — | 10,373 | ||||
MFS Global Real Estate Fund | — | 114,985 | — | 114,985 | ||||
MFS Government Securities Fund | 595,953 | 175,281 | (291,923) | 479,311 | ||||
MFS High Income Fund | 1,065,664 | 561,819 | (311,902) | 1,315,581 | ||||
MFS Inflation-Adjusted Bond Fund | — | 346,824 | (1,188) | 345,636 | ||||
MFS International Growth Fund | — | 140,566 | (2) | 140,564 | ||||
MFS International New Discovery Fund | 76,875 | 25,971 | (35,805) | 67,041 | ||||
MFS International Value Fund | — | 132,050 | (138) | 131,912 | ||||
MFS Mid Cap Growth Fund | 567,238 | 424,112 | (70,494) | 920,856 | ||||
MFS Mid Cap Value Fund | 445,651 | 244,358 | (47,179) | 642,830 | ||||
MFS Money Market Fund | 1,968,222 | 686,081 | (2,654,303) | — | ||||
MFS New Discovery Fund | — | 165,568 | (203) | 165,365 | ||||
MFS Research Bond Fund | 1,185,579 | 380,732 | (653,515) | 912,796 | ||||
MFS Research Fund | 367,469 | 169,615 | (186,511) | 350,573 | ||||
MFS Research International Fund | 487,213 | 291,558 | (358,939) | 419,832 | ||||
MFS Value Fund | 451,649 | 163,531 | (216,911) | 398,269 | ||||
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Notes to Financial Statements – continued
| MFS Lifetime 2020 Fund – continued | ||||||||
Underlying Funds | Realized Gain (Loss) | Capital Gain Distributions | Dividend Income | Ending Value | ||||
MFS Core Growth Fund | $(810,162) | $494,885 | $6,495 | $6,652,586 | ||||
MFS Diversified Target Return Fund | 3 | — | — | 683,865 | ||||
MFS Emerging Markets Debt Fund | (51) | — | 4,857 | 3,347,125 | ||||
MFS Emerging Markets Equity Fund | — | — | — | 202,686 | ||||
MFS Global Real Estate Fund | — | — | — | 1,529,302 | ||||
MFS Government Securities Fund | 62,298 | — | 257,638 | 4,807,484 | ||||
MFS High Income Fund | (328,619) | — | 329,774 | 3,433,666 | ||||
MFS Inflation-Adjusted Bond Fund | (171) | — | 1,873 | 3,311,189 | ||||
MFS International Growth Fund | — | — | — | 2,362,882 | ||||
MFS International New Discovery Fund | (535,925) | 82,334 | 27,935 | 876,896 | ||||
MFS International Value Fund | 33 | — | — | 2,375,734 | ||||
MFS Mid Cap Growth Fund | (203,355) | — | — | 5,037,083 | ||||
MFS Mid Cap Value Fund | (247,682) | — | 77,543 | 5,052,646 | ||||
MFS Money Market Fund | — | — | 25,977 | — | ||||
MFS New Discovery Fund | 41 | — | — | 2,239,039 | ||||
MFS Research Bond Fund | (546,402) | — | 663,538 | 8,206,035 | ||||
MFS Research Fund | (1,643,788) | — | 105,965 | 6,064,905 | ||||
MFS Research International Fund | (3,425,651) | 142,701 | 167,079 | 4,458,620 | ||||
MFS Value Fund | (2,362,537) | — | 218,021 | 6,647,107 | ||||
| $(10,041,968) | $719,920 | $1,886,695 | $67,288,850 | |||||
| MFS Lifetime 2030 Fund | ||||||||
Underlying Funds | Beginning Share/Par Amount | Acquisitions Share/Par Amount | Dispositions Share/Par Amount | Ending Share/Par Amount | ||||
MFS Core Growth Fund | 465,450 | 149,857 | (221,201) | 394,106 | ||||
MFS Diversified Target Return Fund | — | 21,818 | — | 21,818 | ||||
MFS Emerging Market Debt Fund | — | 60,916 | — | 60,916 | ||||
MFS Emerging Market Equity Fund | — | 34,040 | — | 34,040 | ||||
MFS Global Real Estate Fund | — | 133,241 | — | 133,241 | ||||
MFS Government Securities Fund | 68,461 | 28,120 | (96,581) | — | ||||
MFS High Income Fund | 186,139 | 163,248 | (60,141) | 289,246 | ||||
MFS Inflation-Adjusted Bond Fund | — | 143,736 | — | 143,736 | ||||
MFS International Growth Fund | — | 154,524 | — | 154,524 | ||||
MFS International New Discovery Fund | 185,197 | 97,530 | (178,541) | 104,186 | ||||
MFS International Value Fund | — | 144,576 | — | 144,576 | ||||
MFS Mid Cap Growth Fund | 706,715 | 366,446 | (301,245) | 771,916 | ||||
MFS Mid Cap Value Fund | 556,148 | 209,288 | (226,727) | 538,709 | ||||
MFS New Discovery Fund | 100,399 | 63,998 | (23,340) | 141,057 | ||||
MFS Research Bond Fund | 136,376 | 88,074 | (69,168) | 155,282 | ||||
MFS Research Fund | 197,422 | 56,662 | (40,487) | 213,597 | ||||
MFS Research International Fund | 298,280 | 181,670 | (169,113) | 310,837 | ||||
MFS Value Fund | 305,332 | 87,398 | (83,874) | 308,856 | ||||
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Notes to Financial Statements – continued
| MFS Lifetime 2030 Fund – continued | ||||||||
Underlying Funds | Realized Gain (Loss) | Capital Gain Distributions | Dividend Income | Ending Value | ||||
MFS Core Growth Fund | $(1,540,582) | $503,673 | $5,843 | $5,158,845 | ||||
MFS Diversified Target Return Fund | — | — | — | 167,127 | ||||
MFS Emerging Markets Debt Fund | — | — | 1,073 | 735,860 | ||||
MFS Emerging Markets Equity Fund | — | — | — | 665,142 | ||||
MFS Global Real Estate Fund | — | — | — | 1,772,111 | ||||
MFS Government Securities Fund | 28,516 | — | 29,227 | — | ||||
MFS High Income Fund | (64,452) | — | 60,933 | 754,931 | ||||
MFS Inflation-Adjusted Bond Fund | — | — | 782 | 1,376,995 | ||||
MFS International Growth Fund | — | — | — | 2,597,548 | ||||
MFS International New Discovery Fund | (2,371,106) | 215,800 | 73,218 | 1,362,750 | ||||
MFS International Value Fund | — | — | — | 2,603,814 | ||||
MFS Mid Cap Growth Fund | (1,232,003) | — | — | 4,222,380 | ||||
MFS Mid Cap Value Fund | (1,439,826) | — | 88,397 | 4,234,250 | ||||
MFS New Discovery Fund | (137,219) | — | — | 1,909,909 | ||||
MFS Research Bond Fund | (60,407) | — | 76,180 | 1,395,981 | ||||
MFS Research Fund | (265,142) | — | 46,232 | 3,695,230 | ||||
MFS Research International Fund | (1,599,454) | 80,637 | 94,413 | 3,301,089 | ||||
MFS Value Fund | (825,179) | — | 133,182 | 5,154,805 | ||||
| $(9,506,854) | $800,110 | $609,480 | $41,108,767 | |||||
| MFS Lifetime 2040 Fund | ||||||||
Underlying Funds | Beginning Share/Par Amount | Acquisitions Share/Par Amount | Dispositions Share/Par Amount | Ending Share/Par Amount | ||||
MFS Core Growth Fund | 270,982 | 130,767 | (141,667) | 260,082 | ||||
MFS Emerging Markets Equity Fund | — | 27,028 | — | 27,028 | ||||
MFS Global Real Estate Fund | — | 98,060 | — | 98,060 | ||||
MFS Inflation Adjusted Bond Fund | — | 67,774 | (157) | 67,617 | ||||
MFS International Growth Fund | — | 109,590 | — | 109,590 | ||||
MFS International New Discovery Fund | 115,963 | 89,245 | (124,704) | 80,504 | ||||
MFS International Value Fund | — | 102,881 | (62) | 102,819 | ||||
MFS Mid Cap Growth Fund | 421,304 | 320,234 | (214,658) | 526,880 | ||||
MFS Mid Cap Value Fund | 331,492 | 193,147 | (157,090) | 367,549 | ||||
MFS New Discovery Fund | 75,152 | 38,766 | (16,100) | 97,818 | ||||
MFS Research Bond Fund | — | 72,992 | (204) | 72,788 | ||||
MFS Research Fund | 107,557 | 47,557 | (18,491) | 136,623 | ||||
MFS Research International Fund | 144,333 | 105,983 | (51,892) | 198,424 | ||||
MFS Value Fund | 166,295 | 74,293 | (36,721) | 203,867 | ||||
Underlying Funds | Realized Gain (Loss) | Capital Gain Distributions | Dividend Income | Ending Value | ||||
MFS Core Growth Fund | $(1,010,318) | $293,235 | $3,844 | $3,404,478 | ||||
MFS Emerging Markets Equity Fund | — | — | — | 528,126 | ||||
MFS Global Real Estate Fund | — | — | — | 1,304,199 | ||||
MFS Inflation Adjusted Bond Fund | (28) | — | 474 | 647,773 | ||||
MFS International Growth Fund | — | — | — | 1,842,201 | ||||
MFS International New Discovery Fund | (1,612,153) | 154,979 | 52,582 | 1,052,993 | ||||
MFS International Value Fund | (13) | — | — | 1,851,771 | ||||
MFS Mid Cap Growth Fund | (905,140) | — | — | 2,882,036 | ||||
MFS Mid Cap Value Fund | (1,041,240) | — | 60,467 | 2,888,939 | ||||
MFS New Discovery Fund | (102,918) | — | — | 1,324,461 | ||||
MFS Research Bond Fund | 8 | — | 1,027 | 654,366 | ||||
MFS Research Fund | (125,634) | — | 28,406 | 2,363,584 | ||||
MFS Research International Fund | (495,816) | 41,930 | 49,093 | 2,107,262 | ||||
MFS Value Fund | (367,178) | — | 78,856 | 3,402,533 | ||||
| $(5,660,430) | $490,144 | $274,749 | $26,254,722 | |||||
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of MFS Series Trust XII and Shareholders of MFS Lifetime Funds:
We have audited the accompanying statements of assets and liabilities of MFS Lifetime Retirement Income Fund, MFS Lifetime 2010 Fund, MFS Lifetime 2020 Fund, MFS Lifetime 2030 Fund and MFS Lifetime 2040 Fund (the “MFS Lifetime Funds”) (five of the funds constituting MFS Series Trust XII), including the portfolios of investments, as of April 30, 2009, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the MFS Lifetime Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the MFS Lifetime Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the MFS Lifetime Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of April 30, 2009, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the MFS Lifetime Funds at April 30, 2009, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and their financial highlights for each of the periods indicated therein, in conformity with U.S. generally accepted accounting principles.
Boston, Massachusetts
June 17, 2009
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TRUSTEES AND OFFICERS — IDENTIFICATION AND BACKGROUND
The Trustees and officers of the Trust, as of June 1, 2009, are listed below, together with their principal occupations during the past five years. (Their titles may have varied during that period.) The address of each Trustee and officer is 500 Boylston Street, Boston, Massachusetts 02116.
Name, Date of Birth | Position(s) Held | Trustee/Officer Since (h) | Principal Occupations During the Past Five Years & | |||
| INTERESTED TRUSTEES | ||||||
Robert J. Manning (k) (born 10/20/63) | Trustee | February 2004 | Massachusetts Financial Services Company, Chief Executive Officer, President, Chief Investment Officer and Director | |||
Robert C. Pozen (k) (born 8/08/46) | Trustee | February 2004 | Massachusetts Financial Services Company, Chairman (since February 2004); Harvard Business School (education), Senior Lecturer (since 2008); Bell Canada Enterprises (telecommunications), Director (until February 2009); The Bank of New York, Director (finance), (March 2004 to May 2005); Telesat (satellite communications), Director (until November 2007) | |||
| INDEPENDENT TRUSTEES | ||||||
David H. Gunning (born 5/30/42) | Trustee and Chair of Trustees | January 2004 | Retired; Cleveland-Cliffs Inc. (mining products and service provider), Vice Chairman/Director (until May 2007); Lincoln Electric Holdings, Inc. (welding equipment manufacturer), Director; Development Alternatives, Inc. (consulting), Director/Non Executive Chairman; Portman Limited (mining), Director (since 2005); Southwest Gas Corp. (natural gas distribution), Director (until May 2004) | |||
Robert E. Butler (n) (born 11/29/41) | Trustee | January 2006 | Consultant – regulatory and compliance matters (since July 2002); PricewaterhouseCoopers LLP (professional services firm), Partner (until 2002) | |||
Lawrence H. Cohn, M.D. (born 3/11/37) | Trustee | August 1993 | Brigham and Women’s Hospital, Senior Cardiac Surgeon (since 2005); Harvard Medical School, Professor of Cardiac Surgery; Partners HealthCare, Physician Director of Medical Device Technology (since 2006); Brigham and Women’s Hospital, Chief of Cardiac Surgery (until 2005) | |||
Maureen R. Goldfarb (born 4/06/55) | Trustee | January 2009 | Private investor; John Hancock Financial Services, Inc., Executive Vice President (until 2004); John Hancock Mutual Funds, Trustee and Chief Executive Officer (until 2004) | |||
William R. Gutow (born 9/27/41) | Trustee | December 1993 | Private investor and real estate consultant; Capital Entertainment Management Company (video franchise), Vice Chairman; Texas Donuts (donut franchise), Vice Chairman (since 2007); Atlantic Coast Tan (tanning salons), Vice Chairman (until 2007) | |||
Michael Hegarty (born 12/21/44) | Trustee | December 2004 | Retired; AXA Financial (financial services and insurance), Vice Chairman and Chief Operating Officer (until 2001); The Equitable Life Assurance Society (insurance), President and Chief Operating Officer (until 2001) | |||
J. Atwood Ives (born 5/01/36) | Trustee | February 1992 | Private investor; KeySpan Corporation (energy related services), Director until 2004; Woodstock Corporation (investment advisory firm), Director until 2003 | |||
John P. Kavanaugh (born 11/04/54) | Trustee | January 2009 | Private investor; The Hanover Insurance Group, Inc., Vice President and Chief Investment Officer (until 2006); Allmerica Investment Trust, Allmerica Securities Trust and Opus Investment Trust (investment companies), Chairman, President and Trustee (until 2006) | |||
J. Dale Sherratt (born 9/23/38) | Trustee | August 1993 | Insight Resources, Inc. (acquisition planning specialists), President; Wellfleet Investments (investor in health care companies), Managing General Partner | |||
Laurie J. Thomsen (born 8/05/57) | Trustee | March 2005 | New Profit, Inc. (venture philanthropy), Partner (since 2006); Private investor; Prism Venture Partners (venture capital), Co-founder and General Partner (until June 2004); The Travelers Companies (commercial property liability insurance), Director | |||
Robert W. Uek (born 5/18/41) | Trustee | January 2006 | Consultant to investment company industry; PricewaterhouseCoopers LLP (professional services firm), Partner (until 1999); TT International Funds (mutual fund complex), Trustee (until 2005); Hillview Investment Trust II Funds (mutual fund complex), Trustee (until 2005) | |||
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Trustees and Officers – continued
Name, Date of Birth | Position(s) Held | Trustee/Officer Since (h) | Principal Occupations During the Past Five Years & | |||
| OFFICERS | ||||||
Maria F. Dwyer (k) (born 12/01/58) | President | November 2005 | Massachusetts Financial Services Company, Executive Vice President and Chief Regulatory Officer (since March 2004) Chief Compliance Officer (since December 2006); Fidelity Management & Research Company, Vice President (prior to March 2004); Fidelity Group of Funds, President and Treasurer (until March 2004) | |||
Christopher R. Bohane (k) (born 1/18/74) | Assistant Secretary and Assistant Clerk | July 2005 | Massachusetts Financial Services Company, Vice President and Senior Counsel | |||
John M. Corcoran (k) (born 4/13/65) | Treasurer | October 2008 | Massachusetts Financial Services Company, Senior Vice President (since October 2008); State Street Bank and Trust (financial services provider), Senior Vice President, (until September 2008) | |||
Ethan D. Corey (k) (born 11/21/63) | Assistant Secretary and Assistant Clerk | July 2005 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel (since 2004); Dechert LLP (law firm), Counsel (prior to December 2004) | |||
David L. DiLorenzo (k) (born 8/10/68) | Assistant Treasurer | July 2005 | Massachusetts Financial Services Company, Vice President (since June 2005); JP Morgan Investor Services, Vice President (until June 2005) | |||
Timothy M. Fagan (k) (born 7/10/68) | Assistant Secretary and Assistant Clerk | September 2005 | Massachusetts Financial Services Company, Vice President and Senior Counsel (since September 2005); John Hancock Advisers, LLC, Vice President, Senior Attorney and Chief Compliance Officer (until August 2005) | |||
Mark D. Fischer (k) (born 10/27/70) | Assistant Treasurer | July 2005 | Massachusetts Financial Services Company, Vice President (since May 2005); JP Morgan Investment Management Company, Vice President (until May 2005) | |||
Robyn L. Griffin (born 7/04/75) | Assistant Independent Chief Compliance Officer | August 2008 | Griffin Compliance LLC (provider of compliance services), Principal (since August 2008); State Street Corporation (financial services provider), Mutual Fund Administration Assistant Vice President (October 2006 – July 2008); Liberty Mutual Group (insurance), Personal Market Assistant Controller (April 2006 – October 2006); Deloitte & Touche LLP (professional services firm), Senior Manager (prior to April 2006) | |||
Brian E. Langenfeld (k) (born 3/07/73) | Assistant Secretary and Assistant Clerk | June 2006 | Massachusetts Financial Services Company, Vice President and Senior Counsel (since May 2006); John Hancock Advisers, LLC, Assistant Vice President and Counsel (until April 2006) | |||
Ellen Moynihan (k) (born 11/13/57) | Assistant Treasurer | April 1997 | Massachusetts Financial Services Company, Senior Vice President | |||
Susan S. Newton (k) (born 3/07/50) | Assistant Secretary and Assistant Clerk | May 2005 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel (since April 2005); John Hancock Advisers, LLC, Senior Vice President, Secretary and Chief Legal Officer (until April 2005) | |||
Susan A. Pereira (k) (born 11/05/70) | Assistant Secretary and Assistant Clerk | July 2005 | Massachusetts Financial Services Company, Vice President and Senior Counsel (since June 2004); Bingham McCutchen LLP (law firm), Associate (until June 2004) | |||
Mark N. Polebaum (k) (born 5/01/52) | Secretary and Clerk | January 2006 | Massachusetts Financial Services Company, Executive Vice President, General Counsel and Secretary (since January 2006); Wilmer Cutler Pickering Hale and Dorr LLP (law firm), Partner (until January 2006) | |||
Frank L. Tarantino (born 3/07/44) | Independent Chief Compliance Officer | June 2004 | Tarantino LLC (provider of compliance services), Principal (since June 2004); CRA Business Strategies Group (consulting services), Executive Vice President (until June 2004) | |||
Richard S. Weitzel (k) (born 7/16/70) | Assistant Secretary and Assistant Clerk | October 2007 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel (since 2004); Massachusetts Department of Business and Technology, General Counsel (until April 2004) | |||
James O. Yost (k) (born 6/12/60) | Assistant Treasurer | September 1990 | Massachusetts Financial Services Company, Senior Vice President | |||
| (h) | Date first appointed to serve as Trustee/officer of an MFS fund. Each Trustee has served continuously since appointment unless indicated otherwise. For the period from December 15, 2004 until February 22, 2005, Messrs. Pozen and Manning served as Advisory Trustees. For the period March 2008 until October 2008, Ms. Dwyer served as Treasurer of the Funds. |
| (j) | Directorships or trusteeships of companies required to report to the Securities and Exchange Commission (i.e., “public companies”). |
| (k) | “Interested person” of the Trust within the meaning of the Investment Company Act of 1940 (referred to as the 1940 Act), which is the principal federal law governing investment companies like the fund, as a result of position with MFS. The address of MFS is 500 Boylston Street, Boston, Massachusetts 02116. |
| (n) | In 2004 and 2005, Mr. Butler provided consulting services to the independent compliance consultant retained by MFS pursuant to its settlement with the SEC concerning market timing and related matters. The terms of that settlement required that compensation and expenses related to the independent compliance consultant be borne exclusively by MFS and, therefore, MFS paid Mr. Butler for the services he rendered to the independent compliance consultant. In 2004 and 2005, MFS paid Mr. Butler a total of $351,119.29. |
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Trustees and Officers – continued
Each Trustee (except Messrs. Butler, Kavanaugh and Uek and Ms. Goldfarb) has been elected by shareholders and each Trustee and officer holds office until his or her successor is chosen and qualified or until his or her earlier death, resignation, retirement or removal. The Trust held a shareholders’ meeting in 2005 to elect Trustees, and will hold a shareholders’ meeting at least once every five years thereafter, to elect Trustees. Messrs. Butler, Kavanaugh, Sherratt, Uek and Ms. Thomsen are members of the Trust’s Audit Committee.
Each of the Fund’s Trustees and officers holds comparable positions with certain other funds of which MFS or a subsidiary is the investment adviser or distributor, and, in the case of the officers, with certain affiliates of MFS. As of January 1, 2009, the Trustees served as board members of 105 funds within the MFS Family of Funds.
The Statement of Additional Information for the Fund and further information about the Trustees are available without charge upon request by calling 1-800-225-2606.
| Investment Adviser | Custodian | |
| Massachusetts Financial Services Company | State Street Bank and Trust | |
| 500 Boylston Street, Boston, MA 02116-3741 | 1 Lincoln Street, Boston, MA 02111-2900 | |
| Distributor | Independent Registered Public Accounting Firm | |
| MFS Fund Distributors, Inc. | Ernst & Young LLP | |
| 500 Boylston Street, Boston, MA 02116-3741 | 200 Clarendon Street, Boston, MA 02116 | |
| Portfolio Manager | ||
| Joseph Flaherty |
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BOARD REVIEW OF INVESTMENT ADVISORY AGREEMENT
A discussion regarding the Board’s most recent review and renewal of each fund’s Investment Advisory Agreement with MFS is available by clicking on the fund’s name under “Mutual Funds” in the “Products and Performance” section of the MFS Web site (mfs.com).
PROXY VOTING POLICIES AND INFORMATION
A general description of the MFS funds’ proxy voting policies and procedures is available without charge, upon request, by calling 1-800-225-2606, by visiting the Proxy Voting section of mfs.com or by visiting the SEC’s Web site at http://www.sec.gov.
Information regarding how the fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available without charge by visiting the Proxy Voting section of mfs.com or by visiting the SEC’s Web site at http://www.sec.gov.
QUARTERLY PORTFOLIO DISCLOSURE
The fund will file a complete schedule of portfolio holdings with the Securities and Exchange Commission (the Commission) for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q may be reviewed and copied at the:
Public Reference Room
Securities and Exchange Commission
100 F Street, NE, Room 1580
Washington, D.C. 20549
Information on the operation of the Public Reference Room may be obtained by calling the Commission at 1-800-SEC-0330. The fund’s Form N-Q is available on the EDGAR database on the Commission’s Internet Web site at http://www.sec.gov, and copies of this information may be obtained, upon payment of a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov or by writing the Public Reference Section at the above address.
A shareholder can also obtain the quarterly portfolio holdings report at mfs.com.
FEDERAL TAX INFORMATION (unaudited)
The funds will notify shareholders of amounts for use in preparing 2009 income tax forms in January 2010. The following information is provided pursuant to provisions of the Internal Revenue Code.
The funds designate the maximum amount allowable as qualified dividend income eligible for the 15% tax rate.
The funds below designated the following amounts as capital gain dividends paid during the fiscal year:
| Capital Gains | ||
| MFS Lifetime Retirement Income Fund | $83,035 | |
| MFS Lifetime 2010 Fund | 86,755 | |
| MFS Lifetime 2020 Fund | 536,942 | |
| MFS Lifetime 2030 Fund | 620,295 | |
| MFS Lifetime 2040 Fund | 381,588 |
For corporate shareholders, the percentages of the ordinary income dividends paid during the fiscal year that qualify for the corporate dividends received deduction are as follows:
| Dividends Received Deductions | ||
| MFS Lifetime Retirement Income Fund | 8.56% | |
| MFS Lifetime 2010 Fund | 10.95% | |
| MFS Lifetime 2020 Fund | 19.88% | |
| MFS Lifetime 2030 Fund | 29.74% | |
| MFS Lifetime 2040 Fund | 37.42% |
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Privacy is a concern for every investor today. At MFS Investment Management® and the MFS funds, we take this concern very seriously. We want you to understand our policies about the investment products and services that we offer, and how we protect the nonpublic personal information of investors who have a direct relationship with us and our wholly owned subsidiaries.
Throughout our business relationship, you provide us with personal information. We maintain information and records about you, your investments, and the services you use. Examples of the nonpublic personal information we maintain include
| Ÿ | data from investment applications and other forms |
| Ÿ | share balances and transactional history with us, our affiliates, or others |
| Ÿ | facts from a consumer reporting agency |
We do not disclose any nonpublic personal information about our customers or former customers to anyone, except as permitted by law. We may share nonpublic personal information with third parties or certain of our affiliates in connection with servicing your account or processing your transactions. We may share information with companies or financial institutions that perform marketing services on our behalf or with other financial institutions with which we have joint marketing arrangements, subject to any legal requirements.
Authorization to access your nonpublic personal information is limited to appropriate personnel who provide products, services, or information to you. We maintain physical, electronic, and procedural safeguards to help protect the personal information we collect about you.
If you have any questions about the MFS privacy policy, please call 1-800-225-2606 any business day between 8 a.m. and 8 p.m. Eastern time.
Note: If you own MFS products or receive MFS services in the name of a third party such as a bank or broker-dealer, their privacy policy may apply to you instead of ours.
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CONTACT US
Web site | ||
mfs.com | ||
MFS TALK | ||
1-800-637-8255 | ||
24 hours a day | ||
Account service and | ||
literature | ||
Shareholders | ||
1-800-225-2606 | ||
Investment professionals | ||
1-800-343-2829 | ||
Retirement plan services | ||
1-800-637-1255 | ||
| Mailing address | ||
| MFS Service Center, Inc. | ||
| P.O. Box 55824 | ||
| Boston, MA 02205-5824 | ||
| Overnight mail | ||
| MFS Service Center, Inc. | ||
| c/o Boston Financial Data Services | ||
| 30 Dan Road | ||
| Canton, MA 02021-2809 |
Save paper with eDelivery. MFS® will send you prospectuses, reports, and proxies directly via e-mail so you will get information faster with less mailbox clutter. To sign up: 1. go to mfs.com. 2. log in via MFS® Access. 3. select eDelivery. If you own your MFS fund shares through a financial institution or a retirement plan, MFS® TALK, MFS Access, and eDelivery may not be available to you.
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| ITEM 2. | CODE OF ETHICS. |
The Registrant has adopted a Code of Ethics pursuant to Section 406 of the Sarbanes-Oxley Act and as defined in Form N-CSR that applies to the Registrant’s principal executive officer and principal financial and accounting officer. The Registrant has not amended any provision in its Code of Ethics (the “Code”) that relates to an element of the Code’s definitions enumerated in paragraph (b) of Item 2 of this Form N-CSR.
A copy of the Code of Ethics is filed as an exhibit to this Form N-CSR.
| ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
Messrs. Robert E. Butler, John P. Kavanaugh and Robert W. Uek and Ms. Laurie J. Thomsen, members of the Audit Committee, have been determined by the Board of Trustees in their reasonable business judgment to meet the definition of “audit committee financial expert” as such term is defined in Form N-CSR. In addition, Messrs. Butler and Uek and Ms. Thomsen are “independent” members of the Audit Committee (as such term has been defined by the Securities and Exchange Commission in regulations implementing Section 407 of the Sarbanes-Oxley Act of 2002). The Securities and Exchange Commission has stated that the designation of a person as an audit committee financial expert pursuant to this Item 3 on the Form N-CSR does not impose on such a person any duties, obligations or liability that are greater than the duties, obligations or liability imposed on such person as a member of the Audit Committee and the Board of Trustees in the absence of such designation or identification.
| ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
Items 4(a) through 4(d) and 4(g):
The Board of Trustees has appointed Ernst & Young LLP (“E&Y”) to serve as independent accountants to certain series of the Registrant (collectively, the “Funds”). The tables below set forth the audit fees billed to the Funds as well as fees for non-audit services provided to the Funds and/or to the Funds’ investment adviser, Massachusetts Financial Services Company (“MFS”) and to various entities either controlling, controlled by, or under common control with MFS that provide ongoing services to the Funds (“MFS Related Entities”).
For the fiscal years ended April 30, 2009 and 2008, audit fees billed to the Funds by E&Y were as follows:
| Audit Fees | ||||
| 2009 | 2008 | |||
Fees billed by E&Y: | ||||
MFS Lifetime Retirement Income Fund | 24,804 | 24,333 | ||
MFS Lifetime 2010 Fund | 24,804 | 24,333 | ||
MFS Lifetime 2020 Fund | 24,804 | 24,333 | ||
MFS Lifetime 2030 Fund | 24,804 | 24,333 | ||
MFS Lifetime 2040 Fund | 24,804 | 24,333 | ||
Total | 124,020 | 121,665 | ||
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For the fiscal years ended April 30, 2009 and 2008, fees billed by E&Y for audit-related, tax and other services provided to the Funds and for audit-related, tax and other services provided to MFS and MFS Related Entities were as follows:
| Audit-Related Fees1 | Tax Fees2 | All Other Fees3 | ||||||||||
| 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | |||||||
Fees billed by E&Y: | ||||||||||||
To MFS Lifetime Retirement Income Fund | 0 | 0 | 4,530 | 4,530 | 0 | 0 | ||||||
To MFS Lifetime 2010 Fund | 0 | 0 | 4,530 | 4,530 | 0 | 0 | ||||||
To MFS Lifetime 2020 Fund | 0 | 0 | 4,530 | 4,530 | 0 | 0 | ||||||
To MFS Lifetime 2030 Fund | 0 | 0 | 4,530 | 4,530 | 0 | 0 | ||||||
To MFS Lifetime 2040 Fund | 0 | 0 | 4,530 | 4,530 | 0 | 0 | ||||||
Total fees billed by E&Y To above Funds: | 0 | 0 | 22,650 | 22,650 | 0 | 0 | ||||||
To MFS and MFS Related Entities of MFS Lifetime Retirement Income Fund* | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
To MFS and MFS Related Entities of MFS Lifetime 2010 Fund* | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
To MFS and MFS Related Entities of MFS Lifetime 2020 Fund* | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
To MFS and MFS Related Entities of MFS Lifetime 2030 Fund* | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
To MFS and MFS Related Entities of MFS Lifetime 2040 Fund* | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
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| 2009 | 2008 | |||||||||||
Aggregate fees for non-audit services: | ||||||||||||
To MFS Lifetime Retirement Income Fund, MFS and MFS Related Entities# | 490,962 | 270,754 | ||||||||||
To MFS Lifetime 2010 Fund, MFS and MFS Related Entities# | 490,962 | 270,754 | ||||||||||
To MFS Lifetime 2020 Fund, MFS and MFS Related Entities# | 490,962 | 270,754 | ||||||||||
To MFS Lifetime 2030 Fund, MFS and MFS Related Entities# | 490,962 | 270,754 | ||||||||||
To MFS Lifetime 2040 Fund, MFS and MFS Related Entities# | 490,962 | 270,754 |
| * | This amount reflects the fees billed to MFS and MFS Related Entities for non-audit services relating directly to the operations and financial reporting of the Funds (portions of which services also related to the operations and financial reporting of other funds within the MFS Funds complex). |
| # | This amount reflects the aggregate fees billed by Deloitte or E&Y, as the case may be, for non-audit services rendered to the Funds and for non-audit services rendered to MFS and the MFS Related Entities. |
| 1 | The fees included under “Audit-Related Fees” are fees related to assurance and related services that are reasonably related to the performance of the audit or review of financial statements, but not reported under “Audit Fees,” including accounting consultations, agreed-upon procedure reports, attestation reports, comfort letters and internal control reviews. |
| 2 | The fees included under “Tax Fees” are fees associated with tax compliance, tax advice and tax planning, including services relating to the filing or amendment of federal, state or local income tax returns, regulated investment company qualification reviews and tax distribution and analysis. |
| 3 | The fees included under “All Other Fees” are fees for products and services provided by E&Y other than those reported under “Audit Fees,” “Audit-Related Fees” and “Tax Fees,” including fees for the subscription to tax treatise and for services related to analysis of fund administrative expenses, compliance program and records management projects. |
Item 4(e)(1):
Set forth below are the policies and procedures established by the Audit Committee of the Board of Trustees relating to the pre-approval of audit and non-audit related services:
To the extent required by applicable law, pre-approval by the Audit Committee of the Board is needed for all audit and permissible non-audit services rendered to the Funds and all permissible non-audit services rendered to MFS or MFS Related Entities if the services relate directly to the operations and financial reporting of the Registrant. Pre-approval is currently on an engagement-by-engagement basis. In the event pre-approval of such services is necessary between regular meetings of the Audit Committee and it is not
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practical to wait to seek pre-approval at the next regular meeting of the Audit Committee, pre-approval of such services may be referred to the Chair of the Audit Committee for approval; provided that the Chair may not pre-approve any individual engagement for such services exceeding $50,000 or multiple engagements for such services in the aggregate exceeding $100,000 in each period between regular meetings of the Audit Committee. Any engagement pre-approved by the Chair between regular meetings of the Audit Committee shall be presented for ratification by the entire Audit Committee at its next regularly scheduled meeting.
Item 4(e)(2):
None, or 0%, of the services relating to the Audit-Related Fees, Tax Fees and All Other Fees paid by the Fund and MFS and MFS Related Entities relating directly to the operations and financial reporting of the Registrant disclosed above were approved by the audit committee pursuant to paragraphs (c)(7)(i)(C) of Rule 2-01 of Regulation S-X (which permits audit committee approval after the start of the engagement with respect to services other than audit, review or attest services, if certain conditions are satisfied).
Item 4(f): Not applicable.
Item 4(h): The Registrant’s Audit Committee has considered whether the provision by a Registrant’s independent registered public accounting firm of non-audit services to MFS and MFS Related Entities that were not pre-approved by the Committee (because such services did not relate directly to the operations and financial reporting of the Registrant) was compatible with maintaining the independence of the independent registered public accounting firm as the Registrant’s principal auditors.
| ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable to the Registrant.
| ITEM 6. | INVESTMENTS |
A schedule of investments of the Registrant is included as part of the report to shareholders of such series under Item 1 of this Form N-CSR.
| ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable to the Registrant.
| ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable to the Registrant.
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| ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. |
Not applicable to the Registrant.
| ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
There were no material changes to the procedures by which shareholders may send recommendations to the Board for nominees to the Registrant’s Board since the Registrant last provided disclosure as to such procedures in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K or this Item.
| ITEM 11. | CONTROLS AND PROCEDURES. |
| (a) | Based upon their evaluation of the effectiveness of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as conducted within 90 days of the filing date of this report on Form N-CSR, the registrant’s principal financial officer and principal executive officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. |
| (b) | There were no changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by the report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
| ITEM 12. | EXHIBITS. |
| (a) | File the exhibits listed below as part of this form. Letter or number the exhibits in the sequence indicated. |
| (1) | Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Code of Ethics attached hereto. |
| (2) | A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2 under the Act (17 CFR 270.30a-2): Attached hereto. |
| (b) | If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed “filed” for the purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference: Attached hereto. |
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Notice
A copy of the Amended and Restated Declaration of Trust, as amended, of the Registrant is on file with the Secretary of State of The Commonwealth of Massachusetts and notice is hereby given that this instrument is executed on behalf of the Registrant by an officer of the Registrant as an officer and not individually and the obligations of or arising out of this instrument are not binding upon any of the Trustees or shareholders individually, but are binding only upon the assets and property of the respective constituent series of the Registrant.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) MFS SERIES TRUST XII
| By (Signature and Title)* | MARIA F. DWYER | |
| Maria F. Dwyer, President |
Date: June 17, 2009
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By (Signature and Title)* | MARIA F. DWYER | |
| Maria F. Dwyer, President (Principal Executive Officer) |
Date: June 17, 2009
| By (Signature and Title)* | JOHN M. CORCORAN | |
| John M. Corcoran, Treasurer (Principal Financial Officer and Accounting Officer) |
Date: June 17, 2009
| * | Print name and title of each signing officer under his or her signature. |