MFS Variable Insurance Trust Ii NCSR Certified annual shareholder report (management investment company)

MFS Variable Insurance Trust Ii N-CSRCertified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORMN-CSR

CERTIFIED SHAREHOLDER REPORT OF

REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number811-03732

MFS VARIABLE INSURANCE TRUST II

(Exact name of registrant as specified in charter)

111 Huntington Avenue, Boston, Massachusetts 02199

(Address of principal executive offices) (Zip code)

Christopher R. Bohane

Massachusetts Financial Services Company

111 Huntington Avenue

Boston, Massachusetts 02199

(Name and address of agents for service)

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

Date of fiscal year end: December 31

Date of reporting period: December 31, 2018

ITEM 1.

REPORTS TO STOCKHOLDERS.

Annual Report

December 31, 2018

LOGO

MFS^® Blended Research^® Core Equity Portfolio

LOGO

MFS^® Variable Insurance Trust II

Beginning on January 1, 2021, as permitted by regulations adopted by the U.S. Securities and Exchange Commission, the insurance company that offers your contract may determine that it will no longer send you paper copies of the fund’s annual and semiannual shareholder reports unless you specifically request paper copies from the insurance company or from your financial intermediary. Instead, the shareholder reports will be made available on a Web site (insurancefunds.mfs.com or other Web site of which you will be notified), and the insurance company will notify you by mail each time a report is posted and provide you with a Web site link to access the report. Instructions for requesting paper copies will be provided by your insurance company or financial intermediary.

If you already elected to receive shareholder reports by email, you will not be affected by this change and you need not take any action. If your insurance company or financial intermediary offers electronic delivery, you may elect to receive shareholder reports and other communications from the insurance company or financial intermediary by email by following the instructions provided by the insurance company or financial intermediary.

Beginning on January 1, 2019, you may elect to receive all future reports in paper free of charge from the insurance company or financial intermediary. You can inform the insurance company or financial intermediary that you wish to continue receiving paper copies of your shareholder reports by contacting your insurance company or financial intermediary. Your election to receive reports in paper will apply to all funds held in your account with your insurance company or financial intermediary.

CGS-ANN

MFS® Blended Research® Core Equity Portfolio

CONTENTS

The report is prepared for the general information of contract owners. 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 OR CREDIT UNION GUARANTEE• NOT A DEPOSIT• NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY OR NCUA/NCUSIF

MFS Blended Research Core Equity Portfolio

LETTER FROM THE EXECUTIVE CHAIRMAN

LOGO

Dear Contract Owners:

Higher interest rates, international trade friction, and geopolitical uncertainty surrounding issues such as Brexit have contributed to an uptick in market volatility in recent quarters — a departure from thelow-volatility environment that prevailed for much of the past several years. Against this more challenging backdrop, equity markets in the United States outperformed most international markets on a relative basis in 2018, though broad market returns were modestly negative on an absolute basis. Global economic growth has become less synchronized over the past few quarters, with Europe, China, and some emerging markets having shown signs of significantly slowing growth. While U.S. growth has remained above average, the pace of that growth slowed in the second half of 2018.

Slowing global growth and tighter financial conditions have clouded the outlook for U.S. monetary policy, with the chairman of the U.S. Federal Reserve acknowledging that policy rates are close to levels that the Fed deems neutral for the U.S. economy. This suggests that the predictable pattern of quarterly rate increases is behind us. At the same time, markets must contend with a shift from years of quantitative easing toward a cycle of quantitative tightening now that the European Central Bank has halted asset purchases. U.S. tax reforms adopted in late 2017 have been welcomed by equity markets while emerging market economies have recently had to contend with tighter financial conditions as a result of firmer U.S. interest rates and a stronger dollar. With the Republicans losing control of the U.S. House of Representatives, further meaningful U.S. fiscal stimulus appears less likely over the remainder of this presidential term. A partial U.S. government shutdown, beginning in late 2018, also added to political uncertainty. Globally, inflation remains largely subdued thanks in part to falling oil prices, but tight labor markets and moderate global demand have investors on the lookout for its potential reappearance. Increased U.S. protectionism is also a growing concern, as investors fear trade disputes could dampen business sentiment, leading to even slower global growth. While there has been progress on this front — a NAFTA replacement has been agreed upon between the U.S., Mexico, and Canada; the free trade pact with Korea has been updated; and a negotiating framework with the European Union has been agreed upon — tensions over trade with China remain quite high, though the two sides have recently returned to the negotiating table.

As a global investment manager with nearly a century of expertise, MFS® firmly believes active risk management offers downside mitigation and may help improve investment outcomes. We built our active investment platform with this belief in mind. Ourlong-term perspective influences nearly every aspect of our business, ensuring our investment decisions align with the investing time horizons of our clients.

Respectfully,

LOGO

Robert J. Manning

Executive Chairman

MFS Investment Management

February 15, 2019

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

MFS Blended Research Core Equity Portfolio

PORTFOLIO COMPOSITION

Portfolio structure

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Top ten holdings
Microsoft Corp.			5.1%
Amazon.com, Inc.			3.6%
Johnson & Johnson			3.1%
Apple, Inc.			2.4%
Bank of America Corp.			2.4%
Cisco Systems, Inc.			2.4%
Intel Corp.			2.3%
Boeing Co.			2.2%
Comcast Corp., “A”			2.1%
Alphabet, Inc., “C”			2.0%


Equity sectors (k)
Technology			19.5%
Financial Services			17.8%
Health Care			16.5%
Leisure			7.6%
Utilities & Communications			6.7%
Retailing			5.7%
Industrial Goods & Services			5.6%
Consumer Staples			5.2%
Special Products & Services			4.1%
Energy			3.7%
Transportation			3.0%
Basic Materials			2.1%
Autos & Housing			1.7%

(k)	The sectors set forth above and the associated portfolio composition are based on MFS’ own custom sector classification methodology.

Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.

Percentages are based on net assets as of December 31, 2018.

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

MFS Blended Research Core Equity Portfolio

MANAGEMENT REVIEW

Summary of Results

For the twelve months ended December 31, 2018, Initial Class shares of the MFS Blended Research Core Equity Portfolio (“fund”) provided a total return of –7.74%, while Service Class shares of the fund provided a total return of –7.99%. These compare with a return of –4.38% over the same period for the fund’s benchmark, the Standard & Poor’s 500 Stock Index (“S&P 500 Index”).

Market Environment

During the reporting period, the US Federal Reserve raised interest rates by 100 basis points, bringing the total number of rate hikes to nine since the central bank began to normalize monetary policy in late 2015. Economic growth rates in the US, Eurozone and Japan remained above trend, despite a slowing in global growth, particularly toward the end of the period. Inflation remained contained, particularly outside the US. Late in the period, the European Central Bank halted its asset purchase program but issued forward guidance that it does not expect to raise interest rates at least until after the summer of 2019. The Bank of England (once) and the Bank of Canada (three times) each raised rates during the period. The European political backdrop became a bit more volatile, late in the period, spurred by concerns over cohesion in the eurozone after the election of an anti-establishment, Eurosceptic coalition government in Italy and widespread protests over stagnant wage growth in France.

Bond yields rose in the US during most of the period, but remained low by historical standards and slipped from their highs, late in the period, as market volatility increased. Yields in many developed markets fell. Outside of emerging markets, where spreads and currencies came under pressure, credit spreads remained quite tight until the end of the period, when thinner liquidity, lower oil prices and concerns over high degrees of corporate leverage emerged. Growing concern over increasing global trade friction appeared to have weighed on business sentiment during the period’s second half, especially outside the US. Tighter financial conditions from rising US rates and a strong dollar, combined with trade uncertainty, helped expose structural weaknesses in several emerging markets in the second half of the period.

Volatility increased, at the end of the period, amid signs of slowing global economic growth and increasing trade tensions, which prompted a market setback shortly after US markets set record highs in September. It was the second such equity market decline during the reporting period. The correction came despite a third consecutive quarter of strong growth in US earnings per share. Strong earnings growth, combined with the market decline, brought US equity valuations down from elevated levels, earlier in the period, to multiples more in line with long-term averages. While the US economy held up better than most, global economic growth became less synchronized during the period, with Europe and China showing signs of a slowdown and some emerging markets coming under stress.

Detractors from Performance

Stock selection within both thefinancial servicesandhealth care sectors was a primary factor that detracted from performance relative to the S&P 500 Index. Within thefinancial services sector, the fund’s overweight positions in financial services provider Synchrony Financial, insurance company Prudential Financial and direct banking and payment services provider Discover Financial Services held back relative returns. Shares of Synchrony Financial came under pressure as the company announced that it was losing one of its major customers (Walmart), which was the first of five major contracts up for renewal in the next five years. Walmart had been a customer of Synchrony Financial for 20 years, and this loss signaled that tenure might not have been as much of a hurdle to switching companies as investors appeared to have assumed. Within thehealth caresector, not owning shares of pharmaceutical company Merck held back relative performance. Shares of Merck advanced as the company posted solid earnings results on the back of strong growth from its flagship immuno-oncology drug Keytruda. In addition, Merck’s management raised themid-point of its earnings guidance, increased its dividend and announced a share repurchase program, which further supported the stock. The fund’s overweight position in shares of health services and information technology company McKesson (h) further weakened relative results.

Elsewhere, the fund’s overweight positions in food producer Tyson Foods, information technology company DXC Technology and tobacco company Philip Morris International negatively impacted relative performance. Thedrop-off in the share price of Tyson Foods, early in the year, coincided with a class action lawsuit in Minnesota. Later in the year, the company lowered its fiscal-year 2018 earnings per share guidance, driven by lower pork exports, as a result of tariffs, and increased US pork processing capacity, which both drove domestic pork prices down. The fund’s holdings of automotive seats manufacturer Lear (b) and residential and commercial building materials manufacturer Owens Corning (b)(h) further weighed on relative results.

Contributors to Performance

Stock selection in both theindustrial goods & services andutilitiessectors contributed to relative performance. Within theindustrial goods & services sector, avoiding shares of poor-performing diversified industrial conglomerate General Electric contributed to relative performance. The share price of General Electric declined during the year after the company significantly lowered its expectations for future earnings and cash flows, reduced its dividend, changed its management team and moved forward with

MFS Blended Research Core Equity Portfolio

Management Review – continued

additional portfolio restructuring after reporting losses in its power segment. Within theutilities & communications sector, the fund’s overweight holdings of power generation company NRG Energy, utility services provider Exelon and integrated electric power company AES positively impacted relative returns. Shares of NRG Energy advanced during the reporting period after the company announced a share buyback program and reported earnings results that were in line with expectations.

In other sectors, the fund’s overweight holdings of pharmaceutical company Eli Lilly, network equipment company Cisco Systems, medical device maker Medtronic and health care provider Humana aided relative returns. Avoiding shares of poor-performing telecommunication services provider AT&T also strengthened relative performance. Holdings of real estate investment trust Store Capital (b) were also among the fund’s top relative contributors. Shares of Store Capital benefited from stronger-than-expected financial results, driven by higher net operating income from more robust acquisition volume. The company also raised its revenue guidance figures, which further supported the stock.

Respectfully,

Portfolio Manager(s)

Jim Fallon, Matt Krummell, Jonathan Sage, and Jed Stocks

(b)	Security is not a benchmark constituent.

(h)	Security was not held in the fund at period end.

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

MFS Blended Research Core Equity Portfolio

PERFORMANCE SUMMARY THROUGH 12/31/18

The following chart illustrates the historical performance of the fund in comparison to its benchmark(s). Benchmarks are unmanaged and may not be invested in directly. Benchmark returns do not reflect any fees or expenses. The performance of other share classes will be greater than or less than that of the class depicted below. (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 units, 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 contract holder would pay on fund distributions or the redemption of contract units. The returns for the fund shown also do not reflect the deduction of expenses associated with variable products, such as mortality and expense risk charges, separate account charges, and sales charges imposed by the insurance company separate accounts. Such expenses would reduce the overall returns shown.

Growth of a Hypothetical $10,000 Investment

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Total Returns through 12/31/18

Average annual total returns


	Share Class	Class Inception Date	1-yr	5-yr	10-yr
	Initial Class	11/14/86	(7.74)%	6.58%	12.40%
	Service Class	8/24/01	(7.99)%	6.31%	12.12%

Comparative benchmark(s)
	Standard & Poor’s 500 Stock Index (f)		(4.38)%	8.49%	13.12%

(f)	Source: FactSet Research Systems Inc.

Benchmark Definition(s)

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

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

Performance results reflect any applicable expense subsidies and waivers in effect during the periods shown. Without such subsidies and waivers the fund’s performance results would be less favorable. Please see the prospectus and financial statements for complete details. All results are historical and assume the reinvestment of any dividends and capital gains distributions.

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

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

MFS Blended Research Core Equity Portfolio

EXPENSE TABLE

Fund Expenses Borne by the Contract Holders during the Period,

July 1, 2018 through December 31, 2018

As a contract holder of the fund, you incur ongoing costs, including management fees; distribution and/or service(12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period July 1, 2018 through December 31, 2018.

Actual Expenses

The first line for each share class in the following table 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 table provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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 the 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 table are meant to highlight the fund’s ongoing costs only and do not take into account the fees and expenses imposed under the variable contracts through which your investment in the fund is made. Therefore, the second line for each share class in the table is useful in comparing ongoing costs associated with an investment in vehicles (such as the fund) which fund benefits under variable annuity and variable life insurance contracts and to qualified pension and retirement plans only, and will not help you determine the relative total costs of investing in the fund through variable annuity and variable life insurance contracts. If the fees and expenses imposed under the variable contracts were included, your costs would have been higher.


Share Class		Annualized Expense Ratio		Beginning Account Value 7/01/18		Ending Account Value 12/31/18		Expenses Paid During Period (p) 7/01/18-12/31/18
Initial Class	Actual		0.44%		$1,000.00		$914.85		$2.12
Initial Class	Hypothetical (h)		0.44%		$1,000.00		$1,022.99		$2.24
Service Class	Actual		0.69%		$1,000.00		$913.48		$3.33
Service Class	Hypothetical (h)		0.69%		$1,000.00		$1,021.73		$3.52

(h)	5% class return per year before expenses.

(p)	“Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect theone-half year period).

MFS Blended Research Core Equity Portfolio

PORTFOLIO OF INVESTMENTS – 12/31/18

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



Issuer	Shares/Par		Value ($)
COMMON STOCKS – 99.2%
Aerospace – 3.3%
Boeing Co.		28,642	$	9,237,045
Honeywell International, Inc.		20,103		2,656,008
Leidos Holdings, Inc.		35,530		1,873,142

			$	13,766,195

Airlines – 1.1%
Delta Air Lines, Inc.		94,506	$	4,715,849

Alcoholic Beverages – 1.2%
Molson Coors Brewing Co.		85,087	$	4,778,486

Automotive – 1.2%
Lear Corp.		40,125	$	4,929,757

Biotechnology – 2.3%
Biogen, Inc. (a)		23,900	$	7,191,988
Celgene Corp. (a)		37,551		2,406,644

			$	9,598,632

Business Services – 2.5%
DXC Technology Co.		71,974	$	3,826,858
FleetCor Technologies, Inc. (a)		30,121		5,594,072
Global Payments, Inc.		9,958		1,026,968

			$	10,447,898

Cable TV – 2.0%
Comcast Corp., “A”		249,400	$	8,492,070

Chemicals – 2.1%
CF Industries Holdings, Inc.		141,622	$	6,161,973
Eastman Chemical Co.		36,672		2,681,090

			$	8,843,063

Computer Software – 6.9%
Adobe Systems, Inc. (a)		28,814	$	6,518,879
Microsoft Corp.		206,777		21,002,340
Salesforce.com, Inc. (a)		7,214		988,102

			$	28,509,321

Computer Software – Systems – 3.1%
Apple, Inc.		64,088	$	10,109,241
Hewlett Packard Enterprise		192,641		2,544,788

			$	12,654,029

Construction – 0.5%
Pulte Homes, Inc.		84,444	$	2,194,700

Consumer Products – 0.4%
Kimberly-Clark Corp.		11,092	$	1,263,822
Procter & Gamble Co.		3,340		307,013

			$	1,570,835

Consumer Services – 1.6%
Bookings Holdings, Inc. (a)		3,905	$	6,726,050

Electrical Equipment – 0.2%
HD Supply Holdings, Inc. (a)		17,435	$	654,161



Issuer	Shares/Par		Value ($)
COMMON STOCKS – continued
Electronics – 2.7%
Intel Corp.		205,725	$	9,654,674
Lam Research Corp.		10,080		1,372,594

			$	11,027,268

Energy – Independent – 3.4%
EOG Resources, Inc.		59,660	$	5,202,949
Phillips 66		61,111		5,264,713
Pioneer Natural Resources Co.		4,577		601,967
Valero Energy Corp.		38,656		2,898,040

			$	13,967,669

Energy – Integrated – 0.4%
Exxon Mobil Corp.		22,346	$	1,523,774

Food & Beverages – 2.0%
PepsiCo, Inc.		53,226	$	5,880,408
Tyson Foods, Inc., “A”		42,257		2,256,524

			$	8,136,932

Gaming & Lodging – 1.2%
Marriott International, Inc., “A”		46,510	$	5,049,126

Health Maintenance Organizations – 1.0%
Humana Inc.		13,812	$	3,956,862
UnitedHealth Group, Inc.		877		218,478

			$	4,175,340

Insurance – 3.5%
Allstate Corp.		22,000	$	1,817,860
Berkshire Hathaway, Inc., “B” (a)		14,082		2,875,263
MetLife, Inc.		122,314		5,022,213
Prudential Financial, Inc.		57,385		4,679,746

			$	14,395,082

Internet – 4.5%
Alphabet, Inc., “A” (a)		7,824	$	8,175,767
Alphabet, Inc., “C” (a)		8,131		8,420,545
Facebook, Inc., “A” (a)		16,985		2,226,564

			$	18,822,876

Leisure & Toys – 1.5%
Brunswick Corp.		31,673	$	1,471,211
Electronic Arts, Inc. (a)		62,032		4,894,945

			$	6,366,156

Machinery & Tools – 2.1%
AGCO Corp.		23,601	$	1,313,868
Eaton Corp. PLC		84,088		5,773,482
Ingersoll-Rand Co. PLC, “A”		19,327		1,763,202

			$	8,850,552

Major Banks – 6.5%
Bank of America Corp.		405,434	$	9,989,894
Goldman Sachs Group, Inc.		5,443		909,253
JPMorgan Chase & Co.		23,009		2,246,139

MFS Blended Research Core Equity Portfolio

Portfolio of Investments – continued



Issuer	Shares/Par		Value ($)
COMMON STOCKS – continued
Major Banks – continued
Morgan Stanley		151,484	$	6,006,341
Wells Fargo & Co.		171,606		7,907,604

			$	27,059,231

Medical & Health Technology & Services – 4.2%
CVS Health Corp.		69,700	$	4,566,744
HCA Healthcare, Inc.		45,359		5,644,927
Walgreens Boots Alliance, Inc.		106,003		7,243,185

			$	17,454,856

Medical Equipment – 2.3%
Boston Scientific Corp. (a)		28,370	$	1,002,596
Medtronic PLC		91,592		8,331,208

			$	9,333,804

Natural Gas – Pipeline – 1.1%
Kinder Morgan, Inc.		228,908	$	3,520,605
ONEOK, Inc.		21,530		1,161,543

			$	4,682,148

Network & Telecom – 2.4%
Cisco Systems, Inc.		224,756	$	9,738,677

Other Banks & Diversified Financials – 3.9%
Citigroup, Inc.		79,778	$	4,153,243
Discover Financial Services		82,133		4,844,204
Mastercard, Inc., “A”		15,873		2,994,441
Synchrony Financial		140,438		3,294,676
Visa, Inc., “A”		6,704		884,526

			$	16,171,090

Pharmaceuticals – 6.7%
Bristol-Myers Squibb Co.		133,749	$	6,952,273
Eli Lilly & Co.		33,504		3,877,083
Johnson & Johnson		99,495		12,839,830
Pfizer, Inc.		91,399		3,989,566

			$	27,658,752

Railroad & Shipping – 1.8%
Union Pacific Corp.		54,744	$	7,567,263

Real Estate – 3.8%
EPR Properties, REIT		30,990	$	1,984,290
Life Storage, Inc., REIT		31,831		2,959,965
Simon Property Group, Inc., REIT		39,216		6,587,896
Store Capital Corp., REIT		152,886		4,328,202

			$	15,860,353

Restaurants – 2.8%
Aramark		29,809	$	863,567
Domino’s Pizza, Inc.		3,196		792,576
Starbucks Corp.		105,900		6,819,960
U.S. Foods Holding Corp. (a)		96,865		3,064,808

			$	11,540,911



Issuer	Shares/Par		Value ($)
COMMON STOCKS – continued
Specialty Stores – 5.7%
Amazon.com, Inc. (a)		9,962	$	14,962,625
Costco Wholesale Corp.		31,729		6,463,515
Lululemon Athletica, Inc. (a)		2,025		246,260
Urban Outfitters, Inc. (a)		52,488		1,742,602

			$	23,415,002

Telephone Services – 1.0%
CenturyLink, Inc.		118,027	$	1,788,109
Verizon Communications, Inc.		39,971		2,247,170

			$	4,035,279

Tobacco – 1.7%
Philip Morris International, Inc.		105,822	$	7,064,677

Utilities – Electric Power – 4.6%
AES Corp.		358,499	$	5,183,896
Exelon Corp.		168,384		7,594,118
NRG Energy, Inc.		144,805		5,734,278
Vistra Energy Corp. (a)		23,459		536,976

			$	19,049,268

Total Common Stocks (Identified Cost, $357,827,282)			$	410,827,132


INVESTMENT COMPANIES (h) – 0.8%
Money Market Funds – 0.8%
MFS Institutional Money Market Portfolio, 2.4% (v) (Identified Cost, $3,121,333)		3,121,645	$	3,121,333

OTHER ASSETS, LESS LIABILITIES – 0.0%				12,342

NET ASSETS – 100.0%			$	413,960,807

(a)

Non-income producing security.

(h)

An affiliated issuer, which may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of the fund’s investments in affiliated issuers and in unaffiliated issuers were $3,121,333 and $410,827,132, respectively.

(v)

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

The following abbreviations are used in this report and are defined:

PLC

Public Limited Company

REIT

Real Estate Investment Trust

See Notes to Financial Statements

MFS Blended Research Core Equity Portfolio

FINANCIAL STATEMENTS ^| STATEMENT OF ASSETS AND LIABILITIES

This statement represents your fund’s balance sheet, which details the assets and liabilities comprising the total value of the fund.


At 12/31/18

Assets
Investments in unaffiliated issuers, at value (identified cost, $357,827,282)			$410,827,132
Investments in affiliated issuers, at value (identified cost, $3,121,333)			3,121,333
Cash			10,172
Receivables for
Fund shares sold			166,451
Dividends			441,911
Other assets			2,926
Total assets			$414,569,925

Liabilities
Payables for
Fund shares reacquired			$508,401
Payable to affiliates
Investment adviser			18,189
Shareholder servicing costs			122
Distribution and/or service fees			4,280
Payable for independent Trustees’ compensation			8
Accrued expenses and other liabilities			78,118
Total liabilities			$609,118
Net assets			$413,960,807

Net assets consist of
Paid-in capital			$321,564,552
Total distributable earnings (loss)			92,396,255
Net assets			$413,960,807
Shares of beneficial interest outstanding			9,173,088



	Net assets		Shares outstanding		Net asset value per share
Initial Class		$256,438,739		5,662,740		$45.29
Service Class		157,522,068		3,510,348		44.87

See Notes to Financial Statements

MFS Blended Research Core Equity Portfolio

FINANCIAL STATEMENTS ^| STATEMENT OF OPERATIONS

This statement describes how much your fund earned in investment income and accrued in expenses. It also describes any gains and/or losses generated by fund operations.


Year ended 12/31/18

Net investment income (loss)
Income
Dividends	$8,767,001
Dividends from affiliated issuers	54,256
Other	24,031
Total investment income	$8,845,288
Expenses
Management fee	$1,932,891
Distribution and/or service fees	446,822
Shareholder servicing costs	15,274
Administrative services fee	78,605
Independent Trustees’ compensation	12,201
Custodian fee	23,935
Shareholder communications	31,898
Audit and tax fees	53,461
Legal fees	4,266
Miscellaneous	26,381
Total expenses	$2,625,734
Reduction of expenses by investment adviser	(46,012	)
Net expenses	$2,579,722
Net investment income (loss)	$6,265,566

Realized and unrealized gain (loss)
Realized gain (loss) (identified cost basis)
Unaffiliated issuers	$33,515,592
Affiliated issuers	(748	)
Net realized gain (loss)	$33,514,844
Change in unrealized appreciation or depreciation
Unaffiliated issuers	$(73,329,128	)
Net realized and unrealized gain (loss)	$(39,814,284	)
Change in net assets from operations	$(33,548,718	)

See Notes to Financial Statements

MFS Blended Research Core Equity Portfolio

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
	12/31/18			12/31/17
Change in net assets

From operations
Net investment income (loss)		$6,265,566			$6,161,470
Net realized gain (loss)		33,514,844			40,921,145
Net unrealized gain (loss)		(73,329,128	)		44,745,227
Change in net assets from operations		$(33,548,718	)		$91,827,842
Total distributions to shareholders (a)		$(47,187,077	)		$(17,233,087	)
Change in net assets from fund share transactions		$(7,790,686	)		$(48,097,121	)
Total change in net assets		$(88,526,481	)		$26,497,634

Net assets
At beginning of period		502,487,288			475,989,654
At end of period (b)		$413,960,807			$502,487,288

(a)	Distributions from net investment income and from net realized gain are no longer required to be separately disclosed. See Note 2. For the year ended December 31, 2017, distributions from net investment income and from net realized gain were $6,939,009 and $10,294,078, respectively.

(b)	Parenthetical disclosure of undistributed net investment income is no longer required. See Note 2. For the year ended December 31, 2017, end of period net assets included undistributed net investment income of $6,160,999.

See Notes to Financial Statements

MFS Blended Research Core Equity Portfolio

FINANCIAL STATEMENTS ^| FINANCIAL HIGHLIGHTS

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


Initial Class	Year ended

	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14

Net asset value, beginning of period		$54.23			$46.62			$48.56			$53.50			$48.31

Income (loss) from investment operations
Net investment income (loss) (d)		$0.74			$0.68			$0.74	(c)		$0.76			$0.77
Net realized and unrealized gain (loss)		(4.12	)		8.80			3.24			(0.62	)		5.28
Total from investment operations		$(3.38	)		$9.48			$3.98			$0.14			$6.05

Less distributions declared to shareholders
From net investment income		$(0.77	)		$(0.78	)		$(0.72	)		$(0.87	)		$(0.86	)
From net realized gain		(4.79	)		(1.09	)		(5.20	)		(4.21	)		—
Total distributions declared to shareholders		$(5.56	)		$(1.87	)		$(5.92	)		$(5.08	)		$(0.86	)
Net asset value, end of period (x)		$45.29			$54.23			$46.62			$48.56			$53.50
Total return (%) (k)(r)(s)(x)		(7.74	)		20.76			8.45	(c)		1.13			12.57

Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)		0.45			0.46			0.49	(c)		0.60			0.60
Expenses after expense reductions (f)		0.44			0.45			0.44	(c)		0.45			0.45
Net investment income (loss)		1.39			1.35			1.56	(c)		1.45			1.53
Portfolio turnover		54			51			49			51	��		41
Net assets at end of period (000 omitted)		$256,439			$320,384			$306,368			$319,721			$361,501

Service Class	Year ended

	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14

Net asset value, beginning of period		$53.79			$46.26			$48.26			$53.18			$48.02

Income (loss) from investment operations
Net investment income (loss) (d)		$0.61			$0.55			$0.61	(c)		$0.62			$0.64
Net realized and unrealized gain (loss)		(4.11	)		8.73			3.22			(0.61	)		5.23
Total from investment operations		$(3.50	)		$9.28			$3.83			$0.01			$5.87

Less distributions declared to shareholders
From net investment income		$(0.63	)		$(0.66	)		$(0.63	)		$(0.72	)		$(0.71	)
From net realized gain		(4.79	)		(1.09	)		(5.20	)		(4.21	)		—
Total distributions declared to shareholders		$(5.42	)		$(1.75	)		$(5.83	)		$(4.93	)		$(0.71	)
Net asset value, end of period (x)		$44.87			$53.79			$46.26			$48.26			$53.18
Total return (%) (k)(r)(s)(x)		(7.99	)		20.47			8.17	(c)		0.87			12.28

Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)		0.70			0.71			0.74	(c)		0.85			0.85
Expenses after expense reductions (f)		0.69			0.70			0.69	(c)		0.70			0.70
Net investment income (loss)		1.14			1.10			1.30	(c)		1.20			1.28
Portfolio turnover		54			51			49			51			41
Net assets at end of period (000 omitted)		$157,522			$182,103			$169,622			$143,427			$116,301

See Notes to Financial Statements

MFS Blended Research Core Equity Portfolio

Financial Highlights – continued

(c)	Amount reflects aone-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher.

(d)	Per share data is based on average shares outstanding.

(f)	Ratios do not reflect reductions from fees paid indirectly, if applicable.

(k)	The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown.

(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.

(x)	The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes.

See Notes to Financial Statements

MFS Blended Research Core Equity Portfolio

NOTES TO FINANCIAL STATEMENTS

(1)

Business and Organization

MFS Blended Research Core Equity Portfolio (the fund) is a diversified series of MFS Variable Insurance Trust II (the trust). The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as anopen-end management investment company. The shareholders of each series of the trust are separate accounts of insurance companies, which offer variable annuity and/or life insurance products, and qualified retirement and pension plans.

The fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investment Companies.

(2)

Significant Accounting Policies

In August 2018, the FASB issued Accounting Standards Update2018-13, Fair Value Measurement (Topic 820) – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (“ASU2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements. ASU2018-13 would be effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years; however, management has elected to early adopt ASU2018-13 effective with the current reporting period. The impact of the fund’s adoption was limited to changes in the fund’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy.

In August 2018, the Securities and Exchange Commission (SEC) released its Final Rule on Disclosure Update and Simplification (the “Final Rule”) which is intended to simplify an issuer’s disclosure compliance efforts by removing redundant or outdated disclosure requirements without significantly altering the mix of information provided to investors. Effective with the current reporting period, the fund adopted the Final Rule with the impacts being that the fund is no longer required to present the components of distributable earnings on the Statement of Assets and Liabilities or the sources of distributions to shareholders and the amount of undistributed net investment income on the Statements of Changes in Net Assets.

Balance Sheet Offsetting– The fund’s accounting policy with respect to balance sheet offsetting is that, absent an event of default by the counterparty or a termination of the agreement, the International Swaps and Derivatives Association (ISDA) Master Agreement, or similar agreement, does not result in an offset of reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities across transactions between the fund and the applicable counterparty. The fund’s right to setoff may be restricted or prohibited by the bankruptcy or insolvency laws of the particular jurisdiction to which a specific master netting agreement counterparty is subject. Balance sheet offsetting disclosures, to the extent applicable to the fund, have been included in the fund’s Significant Accounting Policies note under the captions for each of the fund’sin-scope financial instruments and transactions.

Investment Valuations– Equity securities, including restricted equity securities, are generally valued at the last sale or official closing price on their primary market or exchange as provided by a third-party pricing service. Equity securities, for which there were no sales reported that day, are generally valued at the last quoted daily bid quotation on their primary market or exchange as provided by a third-party pricing service. Short-term instruments with a maturity at issuance of 60 days or less may be valued at amortized cost, which approximates market value.Open-end investment companies are generally valued at net asset value per share. 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. In determining values, third-party pricing services can utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics, and other market data.

MFS Blended Research Core Equity Portfolio

Notes to Financial Statements – continued

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 effect 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 the 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 the fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the fund determines its net asset value per share.

Various inputs are used in determining the value of the fund’s assets or liabilities. These inputs are categorized into three broad levels. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fund’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted 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. The following is a summary of the levels used as of December 31, 2018 in valuing the fund’s assets or liabilities:


Financial Instruments	Level 1		Level 2		Level 3		Total
Equity Securities		$410,827,132		$—		$—		$410,827,132
Mutual Funds		3,121,333		—		—		3,121,333
Total		$413,948,465		$—		$—		$413,948,465

For further information regarding security characteristics, see the Portfolio of Investments.

Indemnifications– Under the 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 the fund. Additionally, in the normal course of business, the fund enters into agreements with service providers that may contain indemnification clauses. The 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. Dividends received in cash are recorded on theex-dividend date. Certain dividends from foreign securities will be recorded when the fund is informed of the dividend if such information is obtained subsequent to theex-dividend date. Dividend payments received in additional securities are recorded on theex-dividend date in an amount equal to the value of the security on such date.

The fund may receive proceeds from litigation settlements. Any proceeds received from litigation involving portfolio holdings are reflected in the Statement of Operations in realized gain/loss if the security has been disposed of by the fund or in unrealized gain/loss if the security is still held by the fund. Any other proceeds from litigation not related to portfolio holdings are reflected as other income in the Statement of Operations.

Tax Matters and Distributions– The 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. The fund’s federal tax returns, when filed, will remain subject to examination by the Internal Revenue Service for a three year period. Management has analyzed the fund’s tax positions taken on federal and state tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability. Foreign taxes, if any, have been accrued by the fund in the accompanying financial statements in accordance with the applicable foreign tax law. Foreign income taxes may be withheld by certain countries in which the fund invests. Additionally, capital gains realized by the fund on securities issued in or by certain foreign countries may be subject to capital gains tax imposed by those countries.

Distributions to shareholders are recorded on theex-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.

MFS Blended Research Core Equity Portfolio

Notes to Financial Statements – continued

Book/tax differences primarily relate to wash sale loss deferrals.

The tax character of distributions declared to shareholders for the last two fiscal years is as follows:


	Year ended 12/31/18		Year ended 12/31/17
Ordinary income (including any short-term capital gains)		$6,509,038		$6,939,009
Long-term capital gains		40,678,039		10,294,078
Total distributions		$47,187,077		$17,233,087

The federal tax cost and the tax basis components of distributable earnings were as follows:


As of 12/31/18

Cost of investments	$361,688,628
Gross appreciation	71,563,454
Gross depreciation	(19,303,617	)
Net unrealized appreciation (depreciation)	$52,259,837

Undistributed ordinary income	6,264,931
Undistributed long-term capital gain	33,871,487

Multiple Classes of Shares of Beneficial Interest– The fund offers multiple classes of shares, which differ in their respective distribution and/or service fees. The fund’s 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. The fund’s distributions declared to shareholders as reported in the Statements of Changes in Net Assets are presented by class as follows:


	From net investment income				From net realized gain

	Year ended 12/31/18		Year ended 12/31/17		Year ended 12/31/18		Year ended 12/31/17
Initial Class		$4,125,022		$4,671,636		$25,645,863		$6,553,119
Service Class		2,036,008		2,267,373		15,380,184		3,740,959
Total		$6,161,030		$6,939,009		$41,026,047		$10,294,078

(3)

Transactions with Affiliates

Investment Adviser– The fund has an investment advisory agreement with MFS to provide overall investment management and related administrative services and facilities to the fund. The management fee is computed daily and paid monthly at the following annual rates based on the fund’s average daily net assets:


Up to $1 billion			0.40%
In excess of $1 billion and up to $2.5 billion			0.375%
In excess of $2.5 billion			0.35%

MFS has agreed in writing to reduce its management fee by a specified amount if certain MFS mutual fund assets exceed thresholds agreed to by MFS and the fund’s Board of Trustees. For the year ended December 31, 2018, this management fee reduction amounted to $46,012, which is included in the reduction of total expenses in the Statement of Operations. The management fee incurred for the year ended December 31, 2018 was equivalent to an annual effective rate of 0.39% of the fund’s average daily net assets.

Distributor– MFS Fund Distributors, Inc. (MFD), a wholly-owned subsidiary of MFS, is the distributor of shares of the fund. The Trustees have adopted a distribution plan for the Service Class shares pursuant to Rule12b-1 under the Investment Company Act of 1940.

Shareholder Servicing Agent– MFS Service Center, Inc. (MFSC), a wholly-owned subsidiary of MFS, receives a fee from the fund for its services as shareholder servicing agent. For the year ended December 31, 2018, the fee was $14,606, which equated to 0.0030% annually of the fund’s average daily net assets. MFSC also receives payment from the fund forout-of-pocket expenses paid by MFSC on behalf of the fund. For the year ended December 31, 2018, these costs amounted to $668.

MFS Blended Research Core Equity Portfolio

Notes to Financial Statements – continued

Administrator– MFS provides certain financial, legal, shareholder communications, compliance, and other administrative services to the fund. Under an administrative services agreement, the fund reimburses MFS the costs incurred to provide these services. The fund is charged an annual fixed amount of $17,500 plus a fee based on average daily net assets. The administrative services fee incurred for the year ended December 31, 2018 was equivalent to an annual effective rate of 0.0163% of the fund’s average daily net assets.

Trustees’ and Officers’ Compensation– The fund pays compensation to independent Trustees in the form of a retainer, attendance fees, and additional compensation to Board and Committee chairpersons. The 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– This fund and certain other funds managed by MFS (the funds) have entered into a service agreement (the ISO Agreement) which provides for payment of fees solely by the funds to Tarantino LLC in return for the provision of services of an Independent Senior Officer (ISO) for the funds. Frank L. Tarantino serves as the ISO and is an officer of the funds and the sole member of Tarantino LLC. The funds can terminate the ISO Agreement with Tarantino LLC at any time under the terms of the ISO Agreement. For the year ended December 31, 2018, the fee paid by the fund under this agreement was $824 and is included in “Miscellaneous” expense in the Statement of Operations. MFS has agreed to bear all expenses associated with office space, other administrative support, and supplies provided to the ISO.

The fund invests in the MFS Institutional Money Market Portfolio which is managed by MFS and seeks current income consistent with preservation of capital and liquidity. This money market fund does not pay a management fee to MFS.

The fund is permitted to engage in purchase and sale transactions with funds and accounts for which MFS serves as investment adviser orsub-adviser (“cross-trades”) pursuant to a policy adopted by the Board of Trustees. This policy has been designed to ensure that cross-trades conducted by the fund comply with Rule17a-7 under the Investment Company Act of 1940. During the year ended December 31, 2018, the fund engaged in purchase transactions pursuant to this policy, which amounted to $848,311.

Effective on or about January 3, 2018, the adviser has voluntarily undertaken to reimburse the fund from its own resources on a quarterly basis for the cost of investment research embedded in the cost of the fund’s securities trades. This agreement may be rescinded at any time. For the period on or about January 3, 2018 to December 31, 2018, this reimbursement amounted to $23,945, which is included in “Other” income in the Statement of Operations.

(4)

Portfolio Securities

For the year ended December 31, 2018, purchases and sales of investments, other than short-term obligations, aggregated $259,264,466 and $307,859,618, respectively.

(5)

Shares of Beneficial Interest

The 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:


	Year ended 12/31/18						Year ended 12/31/17
	Shares			Amount			Shares			Amount
Shares sold
Initial Class		98,132			$5,079,123			84,685			$4,227,596
Service Class		253,350			13,012,309			167,159			8,469,294
		351,482			$18,091,432			251,844			$12,696,890
Shares issued to shareholders in reinvestment of distributions
Initial Class		552,893			$29,330,972			225,279			$11,063,474
Service Class		331,043			17,416,192			123,248			6,008,332
		883,936			$46,747,164			348,527			$17,071,806
Shares reacquired
Initial Class		(896,433	)		$(48,014,750	)		(973,435	)		$(49,201,989	)
Service Class		(459,784	)		(24,614,532	)		(571,295	)		(28,663,828	)
		(1,356,217	)		$(72,629,282	)		(1,544,730	)		$(77,865,817	)
Net change
Initial Class		(245,408	)		$(13,604,655	)		(663,471	)		$(33,910,919	)
Service Class		124,609			5,813,969			(280,888	)		(14,186,202	)
		(120,799	)		$(7,790,686	)		(944,359	)		$(48,097,121	)

MFS Blended Research Core Equity Portfolio

Notes to Financial Statements – continued

(6)

Line of Credit

The fund and certain other funds managed by MFS participate in a $1.25 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 Overnight Bank Funding rate or daily one month LIBOR plus an agreed upon spread. A commitment fee, based on the average daily, unused portion of the committed line of credit, is allocated among the participating funds. In addition, the 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, at a rate equal to the Overnight Bank Funding rate plus an agreed upon spread. For the year ended December 31, 2018, the fund’s commitment fee and interest expense were $2,825 and $0, respectively, and are included in “Miscellaneous” expense in the Statement of Operations.

(7)

Investments in 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:


Affiliated Issuers		Beginning Shares/Par Amount		Acquisitions Shares/Par Amount		Dispositions Shares/Par Amount			Ending Shares/Par Amount

MFS Institutional Money Market Portfolio			2,531,684		58,659,419		(58,069,458	)		3,121,645

Affiliated Issuers	Realized Gain (Loss)	Change in Unrealized Appreciation/ Depreciation		Capital Gain Distributions		Dividend Income			Ending Value

MFS Institutional Money Market Portfolio	$(748)		$—		$—		$54,256			$3,121,333

MFS Blended Research Core Equity Portfolio

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees of MFS Variable Insurance Trust II and the Shareholders of MFS Blended Research Core Equity Portfolio:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities of MFS Blended Research Core Equity Portfolio (the “Fund”), including the portfolio of investments, as of December 31, 2018, the related statement 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of December 31, 2018, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian. We believe that our audits provide a reasonable basis for our opinion.

DELOITTE & TOUCHE LLP

Boston, Massachusetts

February 15, 2019

We have served as the auditor of one or more of the MFS investment companies since 1924.

MFS Blended Research Core Equity Portfolio

TRUSTEES AND OFFICERS – IDENTIFICATION AND BACKGROUND

The Trustees and Officers of the Trust, as of February 1, 2019, 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 111 Huntington Avenue, Boston, Massachusetts 02199-7618.


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds overseen by the Trustee	Principal Occupations During the Past Five Years	Other Directorships During the Past Five Years (j)
INTERESTED TRUSTEES
Robert J. Manning (k) (age 55)	Trustee	February 2004	135	Massachusetts Financial Services Company, Executive Chairman (since January 2017); Director; Chairman of the Board; Chief Executive Officer (until 2015);Co-Chief Executive Officer(2015-2016)	N/A

Robin A. Stelmach (k) (age 57)	Trustee	January 2014	135	Massachusetts Financial Services Company, Vice Chair (since January 2017); Chief Operating Officer and Executive Vice President (until January 2017)	N/A

INDEPENDENT TRUSTEES
John P. Kavanaugh (age 64)	Trustee and Chair of Trustees	January 2009	135	Private investor	N/A

Steven E. Buller (age 67)	Trustee	February 2014	135	Financial Accounting Standards Advisory Council, Chairman(2014-2015); Public Company Accounting Oversight Board, Standing Advisory Group, Member (until 2014); BlackRock, Inc. (investment management), Managing Director (until 2014), BlackRock Finco UK (investment management), Director (until 2014)	N/A

John A. Caroselli (age 64)	Trustee	March 2017	135	JC Global Advisors, LLC (management consulting), President (since 2015); First Capital Corporation (commercial finance), Executive Vice President (until 2015)	N/A

Maureen R. Goldfarb (age 63)	Trustee	January 2009	135	Private investor	N/A

Michael Hegarty (age 74)	Trustee	December 2004	135	Private investor	Rouse Properties Inc., Director (until 2016); Capmark Financial Group Inc., Director (until 2015)

Peter D. Jones (age 63)	Trustee	January 2019	135	Franklin Templeton Distributors, Inc. (investment management), President (until 2015); Franklin Templeton Institutional, LLC (investment management), Chairman (until 2015)	N/A

James W. Kilman, Jr. (age 57)	Trustee	January 2019	135	KielStrand Capital LLC (family office and merchant bank), Chief Executive Officer (since 2016); Morgan Stanley & Co. (financial services), Vice Chairman of Investment Banking,Co-Head of Diversified Financials Coverage – Financial Institutions Investment Banking Group (until 2016)	alpha-En Corporation, Director (since 2016)

MFS Blended Research Core Equity Portfolio

Trustees and Officers – continued


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds overseen by the Trustee	Principal Occupations During the Past Five Years	Other Directorships During the Past Five Years (j)
Clarence Otis, Jr. (age 62)	Trustee	March 2017	135	Darden Restaurants, Inc., Chief Executive Officer (until 2014)	VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director; Federal Reserve Bank of Atlanta, Director (until 2015)

Maryanne L. Roepke (age 62)	Trustee	May 2014	135	American Century Investments (investment management), Senior Vice President and Chief Compliance Officer (until 2014)	N/A

Laurie J. Thomsen (age 61)	Trustee	March 2005	135	Private investor	The Travelers Companies, Director; Dycom Industries, Inc., Director (since 2015)


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds for which the Person is an Officer	Principal Occupations During the Past Five Years
OFFICERS
Christopher R. Bohane (k) (age 45)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Vice President and Assistant General Counsel

Kino Clark (k) (age 50)	Assistant Treasurer	January 2012	135	Massachusetts Financial Services Company, Vice President

John W. Clark, Jr. (k) (age 51)	Assistant Treasurer	April 2017	135	Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head – Treasurer’s Office (until February 2017)

Thomas H. Connors (k) (age 59)	Assistant Secretary and Assistant Clerk	September 2012	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Ethan D. Corey (k) (age 55)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel

David L. DiLorenzo (k) (age 50)	President	July 2005	135	Massachusetts Financial Services Company, Senior Vice President

Heidi W. Hardin (k) (age 51)	Secretary and Clerk	April 2017	135	Massachusetts Financial Services Company, Executive Vice President and General Counsel (since March 2017); Harris Associates (investment management), General Counsel (from September 2015 to January 2017); Janus Capital Management LLC (investment management), Senior Vice President and General Counsel (until September 2015)

Brian E. Langenfeld (k) (age 45)	Assistant Secretary and Assistant Clerk	June 2006	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Amanda S. Mooradian (k) (age 39)	Assistant Secretary and Assistant Clerk	September 2018	135	Massachusetts Financial Services Company, Assistant Vice President and Counsel

Susan A. Pereira (k) (age 48)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Kasey L. Phillips (k) (age 48)	Assistant Treasurer	September 2012	135	Massachusetts Financial Services Company, Vice President

Matthew A. Stowe (k) (age 44)	Assistant Secretary and Assistant Clerk	October 2014	135	Massachusetts Financial Services Company, Vice President and Assistant General Counsel

MFS Blended Research Core Equity Portfolio

Trustees and Officers – continued


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds for which the Person is an Officer	Principal Occupations During the Past Five Years
Frank L. Tarantino (age 74)	Independent Senior Officer	June 2004	135	Tarantino LLC (provider of compliance services), Principal

Richard S. Weitzel (k) (age 48)	Assistant Secretary and Assistant Clerk	October 2007	135	Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel

Martin J. Wolin (k) (age 51)	Chief Compliance Officer	July 2015	135	Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer (since July 2015); Mercer (financial service provider), Chief Risk and Compliance Officer, North America and Latin America (until June 2015)

James O. Yost (k) (age 58)	Treasurer	September 1990	135	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, Mr. Manning served as Advisory Trustee. From January 2012 through December 2016, Messrs. DiLorenzo and Yost served as Treasurer and Deputy Treasurer of the Funds, respectively.

(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 a position with MFS. The address of MFS is 111 Huntington Avenue, Boston, Massachusetts 02199-7618.

Each Trustee 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 does not hold annual meetings for the purpose of electing Trustees, and Trustees are not elected for fixed terms. Under the terms of the Board’s retirement policy, an Independent Trustee shall retire at the end of the calendar year in which he or she reaches the earlier of 75 years of age or 15 years of service on the Board (or, in the case of any Independent Trustee who joined the Board prior to 2015, 20 years of service on the Board).

Messrs. Buller, Hegarty, Kilman and Otis and Ms. Roepke are members of the Trust’s Audit Committee.

Each of the Interested Trustees and certain Officers hold comparable officer positions with certain affiliates of MFS.

The Statement of Additional Information for a Fund includes further information about the Trustees and is available without charge upon request by calling1-800-225-2606.


Investment Adviser Massachusetts Financial Services Company 111 Huntington Avenue Boston, MA 02199-7618		Custodian State Street Bank and Trust Company 1 Lincoln Street Boston, MA 02111-2900
Distributor MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618		Independent Registered Public Accounting Firm Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116
Portfolio Manager(s) Jim Fallon Matt Krummell Jonathan Sage Jed Stocks

MFS Blended Research Core Equity Portfolio

BOARD REVIEW OF INVESTMENT ADVISORY AGREEMENT

The Investment Company Act of 1940 requires that both the full Board of Trustees and a majority of thenon-interested (“independent”) Trustees, voting separately, annually approve the continuation of the Fund’s investment advisory agreement with MFS. The Trustees consider matters bearing on the Fund and its advisory arrangements at their meetings throughout the year, including a review of performance data at each regular meeting. In addition, the independent Trustees met several times over the course of three months beginning in May and ending in July, 2018 (“contract review meetings”) for the specific purpose of considering whether to approve the continuation of the investment advisory agreement for the Fund and the other investment companies that the Board oversees (the “MFS Funds”). The independent Trustees were assisted in their evaluation of the Fund’s investment advisory agreement by independent legal counsel, from whom they received separate legal advice and with whom they met separately from MFS during various contract review meetings. The independent Trustees were also assisted in this process by the MFS Funds’ Independent Senior Officer, a senior officer appointed by and reporting to the independent Trustees.

In connection with their deliberations regarding the continuation of the investment advisory agreement, the Trustees, including the independent Trustees, considered such information and factors as they believed, in light of the legal advice furnished to them and their own business judgment, to be relevant. The investment advisory agreement for the Fund was considered separately, although the Trustees also took into account the common interests of all MFS Funds in their review. As described below, the Trustees considered the nature, quality, and extent of the various investment advisory, administrative, and shareholder services performed by MFS under the existing investment advisory agreement and other arrangements with the Fund.

In connection with their contract review meetings, the Trustees received and relied upon materials that included, among other items: (i) information provided by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent third party, on the investment performance of the Fund for various time periods ended December 31, 2017 and the investment performance of a group of funds with substantially similar investment classifications/objectives (the “Broadridge performance universe”), (ii) information provided by Broadridge on the Fund’s advisory fees and other expenses and the advisory fees and other expenses of comparable funds identified by Broadridge (the “Broadridge expense group”), (iii) information provided by MFS on the advisory fees of portfolios of other clients of MFS, including institutional separate accounts and other clients, (iv) information as to whether and to what extent applicable expense waivers, reimbursements or fee “breakpoints” are observed for the Fund, (v) information regarding MFS’ financial results and financial condition, including MFS’ and certain of its affiliates’ estimated profitability from services performed for the Fund and the MFS Funds as a whole, and compared to MFS’ institutional business, (vi) MFS’ views regarding the outlook for the mutual fund industry and the strategic business plans of MFS, (vii) descriptions of various functions performed by MFS for the Funds, such as compliance monitoring and portfolio trading practices, and (viii) information regarding the overall organization of MFS, including information about MFS’ senior management and other personnel providing investment advisory, administrative and other services to the Fund and the other MFS Funds. The comparative performance, fee and expense information prepared and provided by Broadridge was not independently verified and the independent Trustees did not independently verify any information provided to them by MFS.

The Trustees’ conclusion as to the continuation of the investment advisory agreement was based on a comprehensive consideration of all information provided to the Trustees and not the result of any single factor. Some of the factors that figured particularly in the Trustees’ deliberations are described below, although individual Trustees may have evaluated the information presented differently from one another, giving different weights to various factors. It is also important to recognize that the fee arrangements for the Fund and other MFS Funds are the result of years of review and discussion between the independent Trustees and MFS, that certain aspects of such arrangements may receive greater scrutiny in some years than in others, and that the Trustees’ conclusions may be based, in part, on their consideration of these same arrangements during the course of the year and in prior years.

Based on information provided by Broadridge and MFS, the Trustees reviewed the Fund’s total return investment performance as well as the Broadridge performance universe over various time periods. The Trustees placed particular emphasis on the total return performance of the Fund’s Initial Class shares in comparison to the performance of funds in its Broadridge performance universe over the three-year period ended December 31, 2017, which the Trustees believed was a long enough period to reflect differing market conditions. The total return performance of the Fund’s Initial Class shares was in the 4th quintile relative to the other funds in the universe for this three-year period (the 1st quintile being the best performers and the 5th quintile being the worst performers). The total return performance of the Fund’s Initial Class shares was in the 3rd quintile for theone-year period and the 2nd quintile for the five-year period ended December 31, 2017 relative to the Broadridge performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.

The Trustees expressed concern to MFS about the substandard investment performance of the Fund and the Fund’s retail counterpart, MFS Blended Research Core Equity Fund, which has substantially similar investment strategies and experienced substantially similar investment performance as the Fund. In the course of their deliberations, the Trustees took into account information provided by MFS in connection with the contract review meetings, as well as during investment review meetings conducted with portfolio management personnel during the course of the year as to MFS’ efforts to improve the performance of the

MFS Blended Research Core Equity Portfolio

Board Review of Investment Advisory Agreement – continued

Fund and the Fund’s retail counterpart. In addition, the Trustees requested that they receive a separate update on the Fund’s retail counterpart at each of their regular meetings. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the investment advisory agreement, that MFS’ responses and efforts and plans to improve investment performance were sufficient to support approval of the continuance of the investment advisory agreement for an additionalone-year period, but that they would continue to closely monitor the performance of the Fund’s retail counterpart.

The Trustees also considered the advisory fees charged by MFS to any institutional separate accounts advised by MFS (“separate accounts”) and unaffiliated investment companies for which MFS serves as subadviser (“subadvised funds”) that have comparable investment strategies to the Fund, if any. In comparing these fees, the Trustees considered information provided by MFS as to the generally broader scope of services provided by MFS to the Fund, as well as the more extensive regulatory burdens imposed on MFS in managing the Fund, in comparison to separate accounts and subadvised funds. The Trustees also considered the higher demands placed on MFS’ investment personnel and trading infrastructure as a result of the daily cashin-flows andout-flows of the Fund in comparison to separate accounts.

The Trustees also considered whether the Fund may benefit from any economies of scale in the management of the Fund in the event of growth in assets of the Fund and/or growth in assets of the MFS Funds as a whole. They noted that the Fund’s advisory fee rate schedule is subject to contractual breakpoints that reduce the Fund’s advisory fee rate on the Fund’s average daily net assets over $1 billion and $2.5 billion. The Trustees also noted that MFS has agreed in writing to waive a portion of the management fees of certain MFS Funds, including the Fund, if the total combined assets of certain funds within the MFS Funds’ complex increase above agreed upon thresholds (the “group fee waiver”), enabling the Fund’s shareholders to share in the benefits from any economies of scale at the complex level. The group fee waiver is reviewed and renewed annually between the Board and MFS. The Trustees concluded that the breakpoints and the group fee waiver were sufficient to allow the Fund to benefit from economies of scale as its assets and overall complex assets grow.

The Trustees also considered information prepared by MFS relating to MFS’ costs and profits with respect to the Fund, the MFS Funds considered as a group, and other investment companies and accounts advised by MFS, as well as MFS’ methodologies used to determine and allocate its costs to the MFS Funds, the Fund and other accounts and products for purposes of estimating profitability.

After reviewing these and other factors described herein, the Trustees concluded, within the context of their overall conclusions regarding the investment advisory agreement, that the advisory fees charged to the Fund represent reasonable compensation in light of the services being provided by MFS to the Fund.

In addition, the Trustees considered MFS’ resources and related efforts to continue to retain, attract and motivate capable personnel to serve the Fund. The Trustees also considered current and developing conditions in the financial services industry, including the presence of large and well-capitalized companies which are spending, and appear to be prepared to continue to spend, substantial sums to engage personnel and to provide services to competing investment companies. In this regard, the Trustees also considered the financial resources of MFS and its ultimate parent, Sun Life Financial Inc. The Trustees also considered the advantages and possible disadvantages to the Fund of having an adviser that also serves other investment companies as well as other accounts.

The Trustees also considered the nature, quality, cost, and extent of administrative, transfer agency, and distribution services provided to the Fund by MFS and its affiliates under agreements and plans other than the investment advisory agreement, including any12b-1 fees the Fund pays to MFS Fund Distributors, Inc., an affiliate of MFS. The Trustees also considered the nature, extent and quality of certain other services MFS performs or arranges for on the Fund’s behalf, which may include securities lending programs, directed expense payment programs, class action recovery programs, and MFS’ interaction with third-party service providers, principally custodians andsub-custodians. The Trustees concluded that the variousnon-advisory services provided by MFS and its affiliates on behalf of the Fund were satisfactory.

The Trustees consideredso-called“fall-out benefits” to MFS such as reputational value derived from serving as investment manager to the MFS Funds. The Trustees also considered that, effective January 3, 2018, MFS had discontinued its historic practice of obtaining investment research from portfolio brokerage commissions paid by certain MFS Funds and would thereafter voluntarily reimburse a Fund, if applicable, for the costs of external research acquired through the use of the Fund’s portfolio brokerage commissions.

Based on their evaluation of factors that they deemed to be material, including those factors described above, the Board of Trustees, including the independent Trustees, concluded that the Fund’s investment advisory agreement with MFS should be continued for an additionalone-year period, commencing August 1, 2018.

MFS Blended Research Core Equity Portfolio

PROXY VOTING POLICIES AND INFORMATION

MFS votes proxies on behalf of the fund pursuant to proxy voting policies and procedures that are available without charge, upon request, by calling 1-800-225-2606, by visitingmfs.com/proxyvoting, or by visiting the SEC’s Web site athttp://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 by August 31 of each year without charge by visitingmfs.com/proxyvoting, or by visiting the SEC’s Web site athttp://www.sec.gov.

QUARTERLY PORTFOLIO DISCLOSURE

The fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website athttp://www.sec.gov.A shareholder can obtain the portfolio holdings report for the first and third quarters of the fund’s fiscal year atmfs.com/vit2 by choosing the fund’s name and then selecting the “Resources” tab and clicking on “Prospectus and Reports”.

FURTHER INFORMATION

From time to time, MFS may post important information about the fund or the MFS funds on the MFS web site (mfs.com). This information is available athttps://www.mfs.com/en-us/what-we-do/announcements.htmlor atmfs.com/vit2 by choosing the fund’s name.

INFORMATION ABOUT FUND CONTRACTS AND LEGAL CLAIMS

The fund has entered into contractual arrangements with an investment adviser, administrator, distributor, shareholder servicing agent, 529 program manager (if applicable), and custodian who each provide services to the fund. Unless expressly stated otherwise, shareholders are not parties to, or intended beneficiaries of these contractual arrangements, and these contractual arrangements are not intended to create any shareholder right to enforce them against the service providers or to seek any remedy under them against the service providers, either directly or on behalf of the fund.

Under the Trust’s By-Laws and Declaration of Trust, any claims asserted against or on behalf of the MFS Funds, including claims against Trustees and Officers, must be brought in state and federal courts located within the Commonwealth of Massachusetts.

FEDERAL TAX INFORMATION (unaudited)

The following information is provided pursuant to provisions of the Internal Revenue Code.

The fund designates $44,746,000 as capital gain dividends paid during the fiscal year.

For corporate shareholders, 100% of the ordinary income dividends paid during the fiscal year qualify for the corporate dividends received deduction.

rev. 3/16



FACTS		WHAT DOES MFS DO WITH YOUR PERSONAL INFORMATION?


Why?		Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.

What?

The types of personal information we collect and share depend on the product or service you have with us. This information can include:

• Social Security number and account balances

• Account transactions and transaction history

• Checking account information and wire transfer instructions

When you areno longer our customer, we continue to share your information as described in this notice.


How?		All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons MFS chooses to share; and whether you can limit this sharing.


Reasons we can share your personal information	Does MFS share?	Can you limit this sharing?
For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes – to offer our products and services to you	No	We don’t share
For joint marketing with other financial companies	No	We don’t share
For our affiliates’ everyday business purposes – information about your transactions and experiences	No	We don’t share
For our affiliates’ everyday business purposes – information about your creditworthiness	No	We don’t share
For nonaffiliates to market to you	No	We don’t share



Questions?		Call800-225-2606 or go tomfs.com.


Page 2


Who we are
Who is providing this notice?		MFS Funds, MFS Investment Management, MFS Institutional Advisors, Inc., and MFS Heritage Trust Company.


What we do
How does MFS protect my personal information?		To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include procedural, electronic, and physical safeguards for the protection of the personal information we collect about you.
How does MFS collect my personal information?		We collect your personal information, for example, when you • open an account or provide account information • direct us to buy securities or direct us to sell your securities • make a wire transfer We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can’t I limit all sharing?		Federal law gives you the right to limit only • sharing for affiliates’ everyday business purposes – information about your creditworthiness • affiliates from using your information to market to you • sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing.


Definitions
Affiliates		Companies related by common ownership or control. They can be financial and nonfinancial companies. • MFS does not share personal information with affiliates, except for everyday business purposes as described on page one of this notice.
Nonaffiliates		Companies not related by common ownership or control. They can be financial and nonfinancial companies. • MFS does not share with nonaffiliates so they can market to you.
Joint marketing		A formal agreement between nonaffiliated financial companies that together market financial products or services to you. • MFS doesn’t jointly market.


Other important information
If you own an MFS product or receive an MFS service in the name of a third party such as a bank or broker-dealer, their privacy policy may apply to you instead of ours.

LOGO

Annual Report

December 31, 2018

LOGO

MFS^® Corporate Bond Portfolio

LOGO

MFS^® Variable Insurance Trust II

BDS-ANN

MFS® Corporate Bond Portfolio

CONTENTS

The report is prepared for the general information of contract owners. 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 OR CREDIT UNION GUARANTEE• NOT A DEPOSIT• NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY OR NCUA/NCUSIF

MFS Corporate Bond Portfolio

LETTER FROM THE EXECUTIVE CHAIRMAN

LOGO

Dear Contract Owners:

Respectfully,

LOGO

Robert J. Manning

Executive Chairman

MFS Investment Management

February 15, 2019

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

MFS Corporate Bond Portfolio

PORTFOLIO COMPOSITION

Portfolio structure (i)

LOGO


Fixed income sectors (i)
Investment Grade Corporates			81.0%
High Yield Corporates			10.3%
U.S. Treasury Securities			6.9%
Mortgage-Backed Securities			0.6%
Emerging Markets Bonds			0.4%
Commercial Mortgage-Backed Securities			0.1%
Asset-Backed Securities			0.1%


Composition including fixed income credit quality (a)(i)
AA			1.5%
A			20.7%
BBB			59.2%
BB			10.3%
CC			0.1%
C (o)			0.0%
D			0.1%
U.S. Government			6.9%
Federal Agencies			0.6%
Cash & Cash Equivalents			0.6%

Portfolio facts (i)
Average Duration (d)			7.1
Average Effective Maturity (m)			10.7 yrs.

(a)

For all securities other than those specifically described below, ratings are assigned to underlying securities utilizing ratings from Moody’s, Fitch, and Standard & Poor’s rating agencies and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). Securities rated BBB or higher are considered investment grade. All ratings are subject to change. U.S. Government includes securities issued by the U.S. Department of the Treasury. Federal Agencies includes rated and unrated U.S. Agency fixed-income securities, U.S. Agency mortgage-backed securities, and collateralized mortgage obligations of U.S. Agency mortgage-backed securities. The fund may or may not have held all of these instruments on this date. The fund is not rated by these agencies.

(d)

Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value due to the interest rate move.

(i)

For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts.

(m)

In determining each instrument’s effective maturity for purposes of calculating the fund’s dollar-weighted average effective maturity, MFS uses the instrument’s stated maturity or, if applicable, an earlier date on which MFS believes it is probable that a maturity-shortening device (such as a put,pre-refunding or prepayment) will cause the instrument to be repaid. Such an earlier date can be substantially shorter than the instrument’s stated maturity.

(o)

Less than 0.1%.

Where the fund holds convertible bonds, they are treated as part of the equity portion of the portfolio.

Percentages are based on net assets as of December 31, 2018.

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

MFS Corporate Bond Portfolio

MANAGEMENT REVIEW

Summary of Results

For the twelve months ended December 31, 2018, Initial Class shares of the MFS Corporate Bond Portfolio (“fund”) provided a total return of –3.00%, while Service Class shares of the fund provided a total return of –3.31%. These compare with a return of –2.11% over the same period for the fund’s benchmark, the Bloomberg Barclays U.S. Credit Bond Index.

Market Environment

During the reporting period, the US Federal Reserve raised interest rates by 100 basis points, bringing the total number of rate hikes to nine since the central bank began to normalize monetary policy in late 2015. Economic growth rates in the US, Eurozone and Japan remained above trend, despite a slowing in global growth, particularly toward the end of the period. Inflation remained contained, particularly outside the US. Late in the period, the European Central Bank halted its asset purchase program but issued forward guidance that it does not expect to raise interest rates at least until after the summer of 2019. The Bank of England (once) and the Bank of Canada (three times) each raised rates during the period. The European political backdrop became a bit more volatile, late in the period, spurred by concerns over cohesion in the Eurozone after the election of an anti-establishment, Eurosceptic coalition government in Italy and widespread protests over stagnant wage growth in France.

Detractors from Performance

During the reporting period, the fund’s bond selection and greater exposure to “BBB” rated (r) securities,out-of-benchmark exposure to “BB” rated bonds, and lesser exposure to “AA” rated securities, detracted from performance relative to the Bloomberg Barclays U.S. Credit Bond Index. Additionally, a lesser exposure to both theREITS andsovereignsectors hindered relative returns. Security selection in both theconsumer cyclicalsandbankingsectors also hampered relative performance.

Contributors to Performance

The fund’s cash and/or cash equivalents positions during the period supported relative performance. Anout-of-benchmark exposure to theU.S. Treasurysector, and an underweight allocation to thetechnologysector,also helped relative results. Additionally, a greater exposure to the consumer non–cyclicalssector benefited relative returns. Security selection within theelectric utilitiessector further supported the fund’s relative performance.

Respectfully,

Portfolio Manager(s)

Alexander Mackey and Robert Persons

(r)

Bonds rated “BBB”, “Baa”, or higher are considered investment grade; bonds rated “BB”, “Ba”, or below are considerednon-investment grade. The source for bond quality ratings is Moody’s Investors Service, Standard & Poor’s and Fitch, Inc. and are applied using the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). For securities which are not rated by any of the three agencies, the security is considered Not Rated.

Note to Shareholders: Effective June 30, 2018, Richard Hawkins is no longer a Portfolio Manager of the Fund.

MFS Corporate Bond Portfolio

PERFORMANCE SUMMARY THROUGH 12/31/18

Growth of a Hypothetical $10,000 Investment

LOGO

Total Returns through 12/31/18

Average annual total returns


	Share Class	Class Inception Date	1-yr	5-yr	10-yr
	Initial Class	5/06/98	(3.00)%	2.95%	6.86%
	Service Class	8/24/01	(3.31)%	2.68%	6.59%

Comparative benchmark(s)
	Bloomberg Barclays U.S. Credit Bond Index (f)		(2.11)%	3.22%	5.52%

(f)	Source: FactSet Research Systems Inc.

Benchmark Definition(s)

Bloomberg Barclays U.S. Credit Bond Index – a market capitalization-weighted index that measures the performance of publicly issued, SEC-registered, U.S. corporate and specified foreign debentures and secured notes that meet specified maturity, liquidity, and quality requirements.

It is not possible to invest directly in an index.

Notes to Performance Summary

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

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

MFS Corporate Bond Portfolio

EXPENSE TABLE

Fund Expenses Borne by the Contract Holders during the Period,

July 1, 2018 through December 31, 2018

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period July 1, 2018 through December 31, 2018.

Actual Expenses

Hypothetical Example for Comparison Purposes


Share Class		Annualized Expense Ratio		Beginning Account Value 7/01/18		Ending Account Value 12/31/18		Expenses Paid During Period (p) 7/01/18-12/31/18
Initial Class	Actual		0.63%		$1,000.00		$1,005.43		$3.18
Initial Class	Hypothetical (h)		0.63%		$1,000.00		$1,022.03		$3.21
Service Class	Actual		0.88%		$1,000.00		$1,003.59		$4.44
Service Class	Hypothetical (h)		0.88%		$1,000.00		$1,020.77		$4.48

(h)	5% class return per year before expenses.

(p)	“Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect theone-half year period).

MFS Corporate Bond Portfolio

PORTFOLIO OF INVESTMENTS – 12/31/18

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



Issuer	Shares/Par		Value ($)
BONDS – 98.3%
Aerospace – 2.7%
Huntington Ingalls Industries, Inc., 3.483%, 12/01/2027	$	630,000	$	586,801
L3 Technologies, Inc., 3.85%, 6/15/2023		1,083,000		1,084,618
Lockheed Martin Corp., 3.55%, 1/15/2026		964,000		957,030
Northrop Grumman Corp., 2.55%, 10/15/2022		1,737,000		1,682,376
Northrop Grumman Corp., 2.93%, 1/15/2025		1,488,000		1,412,544

			$	5,723,369

Apparel Manufacturers – 0.7%
Coach, Inc., 4.125%, 7/15/2027	$	1,518,000	$	1,421,163

Asset-Backed & Securitized – 0.2%
Bayview Financial Revolving Mortgage Loan Trust, FLR, 4.105% (LIBOR - 1mo. + 1.6%), 12/28/2040 (z)	$	143,749	$	132,769
Greenwich Capital Commercial Funding Corp., 5.666%, 7/10/2038		96,097		96,339
JPMorgan Chase Commercial Mortgage Securities Corp., 5.781%, 7/15/2042 (n)(q)		200,293		136,677
Lehman Brothers Commercial Conduit Mortgage Trust, 0.954%, 2/18/2030 (i)		27,981		0

			$	365,785

Automotive – 2.2%
General Motors Co., 5.15%, 4/01/2038	$	606,000	$	518,244
General Motors Co., 6.25%, 10/02/2043		1,257,000		1,179,505
General Motors Financial Co., Inc., 4.35%, 1/17/2027		472,000		434,671
Lear Corp., 3.8%, 9/15/2027		1,276,000		1,166,237
ZF North America Capital, Inc., 4.75%, 4/29/2025 (n)		1,426,000		1,327,686

			$	4,626,343

Broadcasting – 1.0%
Netflix, Inc., 4.875%, 4/15/2028	$	392,000	$	357,700
Time Warner, Inc., 3.8%, 2/15/2027		1,054,000		989,503
Time Warner, Inc., 5.35%, 12/15/2043		685,000		661,048

			$	2,008,251

Brokerage & Asset Managers – 2.3%
Charles Schwab Corp., 3.85%, 5/21/2025	$	1,140,000	$	1,163,325
E*TRADE Financial Corp., 2.95%, 8/24/2022		858,000		832,349
Intercontinental Exchange, Inc., 2.75%, 12/01/2020		652,000		647,711
Intercontinental Exchange, Inc., 3.75%, 12/01/2025		1,070,000		1,075,184
TD Ameritrade Holding Corp., 3.3%, 4/01/2027		1,080,000		1,033,551

			$	4,752,120



Issuer	Shares/Par		Value ($)
BONDS – continued
Building – 2.4%
CRH America Finance, Inc., 4.5%, 4/04/2048 (n)	$	896,000	$	797,511
Martin Marietta Materials, Inc., 4.25%, 7/02/2024		850,000		860,207
Martin Marietta Materials, Inc., 3.45%, 6/01/2027		504,000		465,785
Martin Marietta Materials, Inc., 3.5%, 12/15/2027		747,000		681,462
Masco Corp., 4.45%, 4/01/2025		560,000		561,269
Masco Corp., 4.375%, 4/01/2026		476,000		476,283
Standard Industries, Inc., 4.75%, 1/15/2028 (n)		1,346,000		1,130,640

			$	4,973,157

Business Services – 2.0%
Cisco Systems, Inc., 2.2%, 2/28/2021	$	1,428,000	$	1,409,029
Equinix, Inc., 5.75%, 1/01/2025		969,000		976,267
Fidelity National Information Services, Inc., 3.5%, 4/15/2023		220,000		217,457
Fidelity National Information Services, Inc., 5%, 10/15/2025		216,000		224,786
MSCI, Inc., 5.75%, 8/15/2025 (n)		1,464,000		1,474,980

			$	4,302,519

Cable TV – 3.7%
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 6.384%, 10/23/2035	$	505,000	$	518,821
Cox Communications, Inc., 3.5%, 8/15/2027 (n)		803,000		740,754
Cox Communications, Inc., 4.6%, 8/15/2047 (n)		332,000		299,059
NBCUniversal Enterprise, Inc., 1.974%, 4/15/2019 (n)		578,000		576,162
Sirius XM Radio, Inc., 5.375%, 4/15/2025 (n)		170,000		161,075
Sirius XM Radio, Inc., 5.375%, 7/15/2026 (n)		353,000		330,055
Sirius XM Radio, Inc., 5%, 8/01/2027 (n)		1,541,000		1,408,089
Time Warner Cable, Inc., 8.25%, 4/01/2019		850,000		859,541
Time Warner Cable, Inc., 5%, 2/01/2020		354,000		358,924
Time Warner Cable, Inc., 4.5%, 9/15/2042		955,000		768,632
Time Warner Entertainment Co. LP, 8.375%, 7/15/2033		266,000		324,514
Videotron Ltd., 5%, 7/15/2022		1,555,000		1,547,225

			$	7,892,851

Chemicals – 1.5%
LyondellBasell Industries N.V., 5%, 4/15/2019	$	457,000	$	457,498
LyondellBasell Industries N.V., 6%, 11/15/2021		1,256,000		1,327,562

MFS Corporate Bond Portfolio

Portfolio of Investments – continued



Issuer	Shares/Par		Value ($)
BONDS – continued
Chemicals – continued
Sasol Chemicals (USA) LLC, 5.875%, 3/27/2024	$	849,000	$	847,152
Sherwin-Williams Co., 4.5%, 6/01/2047		500,000		451,491

			$	3,083,703

Computer Software – 0.4%
VeriSign, Inc., 4.625%, 5/01/2023	$	763,000	$	751,555

Computer Software – Systems – 0.3%
Apple, Inc., 4.375%, 5/13/2045	$	383,000	$	389,502
Apple, Inc., 4.25%, 2/09/2047		319,000		318,346

			$	707,848

Conglomerates – 0.9%
Roper Technologies, Inc., 4.2%, 9/15/2028	$	681,000	$	674,632
United Technologies Corp., 4.625%, 11/16/2048		517,000		499,962
Wabtec Corp., 4.7%, 9/15/2028		657,000		616,540

			$	1,791,134

Consumer Products – 0.8%
Reckitt Benckiser Treasury Services PLC, 3%, 6/26/2027 (n)	$	1,876,000	$	1,744,195

Consumer Services – 2.8%
Priceline Group, Inc., 3.65%, 3/15/2025	$	283,000	$	275,709
Priceline Group, Inc., 3.6%, 6/01/2026		1,761,000		1,711,754
Priceline Group, Inc., 3.55%, 3/15/2028		486,000		455,268
Service Corp. International, 5.375%, 5/15/2024		2,004,000		1,983,960
Visa, Inc., 4.15%, 12/14/2035		1,413,000		1,462,883

			$	5,889,574

Containers – 1.0%
Ball Corp., 4%, 11/15/2023	$	1,009,000	$	981,253
Ball Corp., 5.25%, 7/01/2025		1,030,000		1,027,425

			$	2,008,678

Electrical Equipment – 1.1%
Arrow Electronics, Inc., 3.5%, 4/01/2022	$	478,000	$	471,554
Arrow Electronics, Inc., 3.875%, 1/12/2028		1,979,000		1,803,754

			$	2,275,308

Electronics – 1.0%
Broadcom Corp./Broadcom Cayman
Finance Ltd., 3.875%, 1/15/2027	$	2,157,000	$	1,936,327
Tyco Electronics Group S.A., 3.5%, 2/03/2022		252,000		252,219

			$	2,188,546

Energy – Independent – 0.4%
Diamondback Energy, Inc., 4.75%, 11/01/2024 (n)	$	576,000	$	555,840
Diamondback Energy, Inc., 5.375%, 5/31/2025		218,000		212,550

			$	768,390



Issuer	Shares/Par		Value ($)
BONDS – continued
Energy – Integrated – 0.9%
Eni S.p.A., 4.75%, 9/12/2028 (n)	$	761,000	$	744,354
Shell International Finance B.V., 3.75%, 9/12/2046		1,300,000		1,210,466

			$	1,954,820

Financial Institutions – 1.2%
AerCap Ireland Capital Ltd., 4.625%, 10/30/2020	$	227,000	$	228,541
AerCap Ireland Capital Ltd., 3.65%, 7/21/2027		1,426,000		1,235,880
International Lease Finance Corp., 5.875%, 8/15/2022		1,000,000		1,047,405

			$	2,511,826

Food & Beverages – 4.6%
Anheuser-Busch InBev Worldwide, Inc., 3.75%, 1/15/2022	$	3,348,000	$	3,350,324
Anheuser-Busch InBev Worldwide, Inc., 4.375%, 4/15/2038		527,000		470,708
Conagra Brands, Inc., 5.3%, 11/01/2038		592,000		559,996
Conagra Brands, Inc., 5.4%, 11/01/2048		791,000		729,400
Constellation Brands, Inc., 4.25%, 5/01/2023		1,605,000		1,618,202
Kraft Heinz Foods Co., 5%, 7/15/2035		290,000		272,630
Kraft Heinz Foods Co., 6.5%, 2/09/2040		1,459,000		1,551,829
Tyson Foods, Inc., 4.5%, 6/15/2022		598,000		610,764
Wm. Wrigley Jr. Co., 2.9%, 10/21/2019 (n)		505,000		504,253

			$	9,668,106

Forest & Paper Products – 0.4%
Georgia-Pacific LLC, 5.4%, 11/01/2020 (n)	$	806,000	$	834,998

Gaming & Lodging – 1.8%
GLP Capital LP/GLP Financing II, Inc., 5.75%, 6/01/2028	$	1,365,000	$	1,378,650
GLP Capital LP/GLP Financing II, Inc., 5.3%, 1/15/2029		319,000		311,992
Hilton Domestic Operating Co., Inc., 5.125%, 5/01/2026 (n)		474,000		455,040
Marriott International, Inc., 4%, 4/15/2028		1,749,000		1,682,350

			$	3,828,032

Insurance – 1.1%
American International Group, Inc., 4.7%, 7/10/2035	$	1,010,000	$	960,291
American International Group, Inc., 4.5%, 7/16/2044		917,000		818,796
Unum Group, 4%, 3/15/2024		637,000		632,219

			$	2,411,306

Insurance – Health – 2.5%
Aetna, Inc., 2.8%, 6/15/2023	$	508,000	$	483,082
Centene Corp., 5.375%, 6/01/2026 (n)		766,000		744,935
Halfmoon Parent, Inc., 4.125%, 11/15/2025 (n)		945,000		944,108
UnitedHealth Group, Inc., 2.7%, 7/15/2020		1,350,000		1,344,956

MFS Corporate Bond Portfolio

Portfolio of Investments – continued



Issuer	Shares/Par		Value ($)
BONDS – continued
Insurance – Health – continued
UnitedHealth Group, Inc., 4.625%, 7/15/2035	$	1,690,000	$	1,795,679

			$	5,312,760

Insurance – Property & Casualty – 3.0%
Berkshire Hathaway, Inc., 2.75%, 3/15/2023	$	828,000	$	812,779
Chubb INA Holdings, Inc., 2.3%, 11/03/2020		343,000		338,096
CNA Financial Corp., 5.875%, 8/15/2020		1,570,000		1,628,430
Liberty Mutual Group, Inc., 4.85%, 8/01/2044 (n)		951,000		924,640
Marsh & McLennan Cos., Inc., 4.8%, 7/15/2021		900,000		927,483
Marsh & McLennan Cos., Inc., 3.5%, 6/03/2024		779,000		767,285
Marsh & McLennan Cos., Inc., 4.35%, 1/30/2047		471,000		439,842
Swiss Re Ltd., 4.25%, 12/06/2042 (n)		468,000		456,627

			$	6,295,182

Machinery & Tools – 0.6%
CNH Industrial Capital LLC, 4.2%, 1/15/2024	$	515,000	$	508,919
CNH Industrial Capital LLC, 3.85%, 11/15/2027		905,000		823,631

			$	1,332,550

Major Banks – 12.3%
Bank of America Corp., 3.124% to 1/20/2022, FLR (LIBOR - 3mo. + 1.16%) to 1/20/2023	$	1,232,000	$	1,211,214
Bank of America Corp., 3.004%, 12/20/2023		739,000		717,463
Bank of America Corp., 4.125%, 1/22/2024		1,917,000		1,942,991
Bank of America Corp., 4.2%, 8/26/2024		1,434,000		1,422,135
Bank of America Corp., 3.419% to 12/20/2027, FLR (LIBOR - 3mo. + 1.04%) to 12/20/2028		351,000		328,081
Bank of America Corp., 6.1% to 3/17/2025, FLR (LIBOR - 3mo. + 3.898%) to 12/29/2049		1,420,000		1,398,700
Bank of America Corp., 5.875% to 3/15/2028, FLR (LIBOR - 3mo. + 2.931%) to 12/31/2059		936,000		852,153
Goldman Sachs Group, Inc., 3.85%, 1/26/2027		608,000		572,219
HSBC Holdings PLC, 4.375%, 11/23/2026		941,000		911,470
HSBC Holdings PLC, 6% to 5/22/2027,
FLR (ICE Swap Rate - 5yr. + 3.746%) to 11/22/2065		611,000		550,193
JPMorgan Chase & Co., 4.25%, 10/15/2020		442,000		449,881
JPMorgan Chase & Co., 4.5%, 1/24/2022		790,000		813,970
JPMorgan Chase & Co., 3.25%, 9/23/2022		2,397,000		2,377,842
JPMorgan Chase & Co., 3.125%, 1/23/2025		688,000		655,741
JPMorgan Chase & Co., 3.964% to 11/15/2047, FLR (LIBOR - 3mo. + 1.38%) to 11/15/2048		1,500,000		1,329,660
JPMorgan Chase & Co., 3.897% to 1/23/2048, FLR (LIBOR - 3mo. + 1.22%) to 1/23/2049		1,111,000		975,844



Issuer	Shares/Par		Value ($)
BONDS – continued
Major Banks – continued
JPMorgan Chase & Co., 6.75% to 2/01/2024, FLR (LIBOR - 3mo. + 3.78%) to 1/29/2049	$	1,221,000	$	1,261,598
Morgan Stanley, 5.5%, 7/28/2021		1,245,000		1,303,745
PNC Bank N.A., 2.6%, 7/21/2020		1,585,000		1,570,838
Sumitomo Mitsui Financial Group, Inc., 3.102%, 1/17/2023		1,861,000		1,825,435
UBS Group Funding (Switzerland) AG, 3.491%, 5/23/2023 (n)		1,293,000		1,260,898
UBS Group Funding (Switzerland) AG, 4.253%, 3/23/2028 (n)		414,000		408,440
Wachovia Corp., 6.605%, 10/01/2025		1,270,000		1,403,292
Wells Fargo & Co., 4.1%, 6/03/2026		476,000		465,059

			$	26,008,862

Medical & Health Technology & Services – 4.6%
Becton, Dickinson and Co., 3.734%, 12/15/2024	$	161,000	$	155,513
Becton, Dickinson and Co., 4.685%, 12/15/2044		1,083,000		1,014,953
Becton, Dickinson and Co., 4.669%, 6/06/2047		955,000		899,443
HCA, Inc., 4.75%, 5/01/2023		910,000		896,350
HCA, Inc., 5.25%, 6/15/2026		884,000		877,370
Laboratory Corp. of America Holdings, 3.25%, 9/01/2024		917,000		877,567
Laboratory Corp. of America Holdings, 4.7%, 2/01/2045		900,000		838,927
Life Technologies Corp., 6%, 3/01/2020		2,172,000		2,232,531
Thermo Fisher Scientific, Inc., 2.95%, 9/19/2026		555,000		512,451
Thermo Fisher Scientific, Inc., 4.1%, 8/15/2047		1,544,000		1,430,991

			$	9,736,096

Medical Equipment – 2.6%
Abbott Laboratories, 2.9%, 11/30/2021	$	2,291,000	$	2,268,220
Abbott Laboratories, 4.75%, 11/30/2036		836,000		872,922
Medtronic, Inc., 3.5%, 3/15/2025		1,061,000		1,057,266
Medtronic, Inc., 4.375%, 3/15/2035		381,000		390,483
Teleflex, Inc., 4.625%, 11/15/2027		125,000		115,937
Zimmer Biomet Holdings, Inc., FLR, 3.554% (LIBOR - 3mo. + 0.75%), 3/19/2021		774,000		766,752

			$	5,471,580

Metals & Mining – 1.5%
Glencore Funding LLC, 4.125%, 5/30/2023 (n)	$	863,000	$	847,455
Glencore Funding LLC, 4%, 4/16/2025 (n)		536,000		504,596
Glencore Funding LLC, 4%, 3/27/2027 (n)		1,389,000		1,266,026
Glencore Funding LLC, 3.875%, 10/27/2027 (n)		559,000		499,735

			$	3,117,812

MFS Corporate Bond Portfolio

Portfolio of Investments – continued



Issuer	Shares/Par		Value ($)
BONDS – continued
Midstream – 3.8%
APT Pipelines Ltd., 5%, 3/23/2035 (n)	$	1,375,000	$	1,385,452
Dominion Gas Holdings LLC, 2.8%, 11/15/2020		975,000		960,404
Kinder Morgan Energy Partners LP, 6.85%, 2/15/2020		370,000		383,100
MPLX LP, 4.5%, 4/15/2038		744,000		650,476
Sabine Pass Liquefaction LLC, 5.625%, 4/15/2023		1,467,000		1,545,519
Sabine Pass Liquefaction LLC, 5.625%, 3/01/2025		133,000		138,169
Sabine Pass Liquefaction LLC, 5.875%, 6/30/2026		289,000		306,132
Sabine Pass Liquefaction LLC, 5%, 3/15/2027		542,000		544,080
Sabine Pass Liquefaction LLC, 4.2%, 3/15/2028		1,021,000		977,180
Tallgrass Energy LP, 4.75%, 10/01/2023 (n)		1,184,000		1,142,560

			$	8,033,072

Mortgage – Backed – 0.6%
Freddie Mac, 3.136%, 10/25/2024	$	807,000	$	812,258
Freddie Mac, 3.244%, 8/25/2027		69,000		68,731
Freddie Mac, 3.286%, 11/25/2027		397,000		395,833

			$	1,276,822

Natural Gas – Distribution – 2.3%
NiSource Finance Corp., 3.85%, 2/15/2023	$	1,106,000	$	1,109,344
NiSource Finance Corp., 4.8%, 2/15/2044		761,000		737,704
NiSource, Inc., 5.65%, 2/01/2045		475,000		517,775
Sempra Energy, 3.25%, 6/15/2027		2,779,000		2,554,638

			$	4,919,461

Network & Telecom – 1.2%
AT&T, Inc., 2.45%, 6/30/2020	$	619,000	$	610,848
AT&T, Inc., 4.75%, 5/15/2046		1,136,000		1,011,064
AT&T, Inc., 5.15%, 11/15/2046		445,000		414,053
AT&T, Inc., 5.65%, 2/15/2047		452,000		451,944

			$	2,487,909

Oils – 2.7%
Marathon Petroleum Corp., 3.4%, 12/15/2020	$	1,105,000	$	1,104,439
Marathon Petroleum Corp., 4.75%, 9/15/2044		910,000		803,276
Marathon Petroleum Corp., 4.5%, 4/01/2048 (n)		883,000		742,149
Valero Energy Corp., 3.4%, 9/15/2026		1,601,000		1,467,102
Valero Energy Corp., 4.9%, 3/15/2045		1,783,000		1,677,999

			$	5,794,965

Other Banks & Diversified Financials – 1.5%
Capital One Financial Corp., 3.75%, 4/24/2024	$	796,000	$	776,290
Discover Bank, 7%, 4/15/2020		1,097,000		1,141,924
Groupe BPCE S.A., 4.5%, 3/15/2025 (n)		760,000		735,797
Macquarie Bank Ltd., 6.125% to 3/08/2027, FLR (Swap Rate – 5yr. + 3.703%) to 12/31/2165 (n)		444,000		379,065



Issuer	Shares/Par		Value ($)
BONDS – continued
Other Banks & Diversified Financials – continued
SunTrust Banks, Inc., 3.3%, 5/15/2026	$	200,000	$	189,611

			$	3,222,687

Pharmaceuticals – 0.8%
Bayer U.S. Finance LLC, 3.875%, 12/15/2023 (n)	$	501,000	$	491,878
Elanco Animal Health, Inc., 4.9%, 8/28/2028 (n)		1,272,000		1,295,115

			$	1,786,993

Pollution Control – 1.1%
Republic Services, Inc., 5.25%, 11/15/2021	$	1,160,000	$	1,227,911
Republic Services, Inc., 3.95%, 5/15/2028		1,100,000		1,101,380

			$	2,329,291

Precious Metals & Minerals – 0.4%
Teck Resources Ltd., 6%, 8/15/2040	$	222,000	$	206,460
Teck Resources Ltd., 6.25%, 7/15/2041		667,000		631,983

			$	838,443

Railroad & Shipping – 0.4%
Canadian Pacific Railway Co., 7.25%, 5/15/2019	$	424,000	$	429,997
Canadian Pacific Railway Co., 4.5%, 1/15/2022		400,000		412,121

			$	842,118

Restaurants – 0.5%
Starbucks Corp., 4%, 11/15/2028	$	984,000	$	972,502

Retailers – 0.8%
Best Buy Co., Inc., 5.5%, 3/15/2021	$	31,000	$	31,964
Dollar Tree, Inc., 4%, 5/15/2025		874,000		840,588
Home Depot, Inc., 4.875%, 2/15/2044		760,000		812,213

			$	1,684,765

Specialty Chemicals – 0.3%
Ecolab, Inc., 4.35%, 12/08/2021	$	656,000	$	673,939

Telecommunications – Wireless – 3.9%
American Tower Corp., REIT, 3.5%, 1/31/2023	$	371,000	$	364,588
American Tower Corp., REIT, 3%, 6/15/2023		1,049,000		1,009,205
American Tower Corp., REIT, 4%, 6/01/2025		1,000,000		981,479
American Tower Corp., REIT, 3.6%, 1/15/2028		1,133,000		1,059,230
Crown Castle International Corp., 5.25%, 1/15/2023		470,000		488,033
Crown Castle International Corp., 3.15%, 7/15/2023		878,000		843,955
Crown Castle International Corp., 4.45%, 2/15/2026		338,000		336,673
Crown Castle International Corp., 3.7%, 6/15/2026		533,000		508,712
SBA Tower Trust, 2.898%, 10/15/2044 (n)		1,081,000		1,074,646
T-Mobile USA, Inc., 6%, 4/15/2024		1,640,000		1,640,000

			$	8,306,521

MFS Corporate Bond Portfolio

Portfolio of Investments – continued


Issuer	Shares/Par		Value ($)
BONDS – continued
Tobacco – 0.4%
Reynolds American, Inc., 8.125%, 6/23/2019	$	733,000	$	747,786
Reynolds American, Inc., 3.25%, 6/12/2020		165,000		163,962

			$	911,748

Transportation – Services – 0.5%
ERAC USA Finance LLC, 3.85%, 11/15/2024 (n)	$	272,000	$	270,672
ERAC USA Finance LLC, 7%, 10/15/2037 (n)		421,000		523,916
ERAC USA Finance LLC, 4.5%, 2/15/2045 (n)		201,000		189,346

			$	983,934

U.S. Treasury Obligations – 6.9%
U.S. Treasury Bonds, 3.5%, 2/15/2039	$	9,952,000	$	10,900,232
U.S. Treasury Bonds, 3%, 2/15/2048		3,579,700		3,566,768

			$	14,467,000

Utilities – Electric Power – 5.7%
Berkshire Hathaway Energy, 4.5%, 2/01/2045	$	597,000	$	596,914
Duke Energy Corp., 3.75%, 9/01/2046		1,059,000		916,880
EDP Finance B.V., 5.25%, 1/14/2021 (n)		728,000		739,860
Emera U.S. Finance LP, 2.7%, 6/15/2021		330,000		321,472
Emera U.S. Finance LP, 3.55%, 6/15/2026		378,000		358,633
Enel Finance International N.V., 2.75%, 4/06/2023 (n)		1,974,000		1,821,045


Issuer	Shares/Par		Value ($)
BONDS – continued
Utilities – Electric Power – continued
Enel Finance International N.V., 3.625%, 5/25/2027 (n)	$	471,000	$	415,720
Enel Finance International N.V., 4.75%, 5/25/2047 (n)		460,000		391,065
Eversource Energy, 2.9%, 10/01/2024		991,000		949,664
Exelon Corp., 3.497%, 6/01/2022		1,163,000		1,136,424
FirstEnergy Corp., 3.9%, 7/15/2027		707,000		685,138
PPL Capital Funding, Inc., 5%, 3/15/2044		590,000		602,163
PPL WEM Holdings PLC, 5.375%, 5/01/2021 (n)		1,057,000		1,091,386
Public Service Enterprise Group, 2%, 11/15/2021		1,555,000		1,493,206
Southern Co., 2.95%, 7/01/2023		440,000		425,094

			$	11,944,664

Total Bonds (Identified Cost, $212,932,673)			$	207,235,253


INVESTMENT COMPANIES (h) – 1.4%
Money Market Funds – 1.4%
MFS Institutional Money Market Portfolio, 2.4% (v) (Identified Cost, $3,006,691)		3,007,091	$	3,006,790

OTHER ASSETS, LESS LIABILITIES – 0.3%				634,166

NET ASSETS – 100.0%			$	210,876,209

(h)

(i)

Interest only security for which the fund receives interest on notional principal (Par amount). Par amount shown is the notional principal and does not reflect the cost of the security.

(n)

Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate value of these securities was $33,768,500, representing 16.0% of net assets.

(q)

Interest received was less than stated coupon rate.

(v)

(z)

Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. The fund holds the following restricted securities:


Restricted Securities	Acquisition Date	Cost		Value
Bayview Financial Revolving Mortgage Loan Trust, FLR, 4.105% (LIBOR - 1mo. + 1.6%), 12/28/2040	3/01/06		$143,749		$132,769
% of Net assets					0.1%

The following abbreviations are used in this report and are defined:

FLR

Floating Rate. Interest rate resets periodically based on the parenthetically disclosed reference rate plus a spread (if any). Theperiod-end rate reported may not be the current rate. All reference rates are USD unless otherwise noted.

ICE

Intercontinental Exchange

LIBOR

London Interbank Offered Rate

PLC

Public Limited Company

REIT

Real Estate Investment Trust

See Notes to Financial Statements

MFS Corporate Bond Portfolio

FINANCIAL STATEMENTS ^| STATEMENT OF ASSETS AND LIABILITIES

This statement represents your fund’s balance sheet, which details the assets and liabilities comprising the total value of the fund.


At 12/31/18

Assets
Investments in unaffiliated issuers, at value (identified cost, $212,932,673)			$207,235,253
Investments in affiliated issuers, at value (identified cost, $3,006,691)			3,006,790
Cash			3,265
Receivables for
Interest			2,437,479
Other assets			1,688
Total assets			$212,684,475

Liabilities
Payables for
Fund shares reacquired			$1,730,642
Payable to affiliates
Investment adviser			4,565
Shareholder servicing costs			65
Distribution and/or service fees			4,265
Payable for independent Trustees’ compensation			4
Accrued expenses and other liabilities			68,725
Total liabilities			$1,808,266
Net assets			$210,876,209

Net assets consist of
Paid-in capital			$210,830,755
Total distributable earnings (loss)			45,454
Net assets			$210,876,209
Shares of beneficial interest outstanding			19,703,150



	Net assets		Shares outstanding		Net asset value per share
Initial Class		$56,506,376		5,228,524		$10.81
Service Class		154,369,833		14,474,626		10.66

See Notes to Financial Statements

MFS Corporate Bond Portfolio

FINANCIAL STATEMENTS ^| STATEMENT OF OPERATIONS

This statement describes how much your fund earned in investment income and accrued in expenses. It also describes any gains and/or losses generated by fund operations.


Year ended 12/31/18

Net investment income (loss)
Income
Interest	$9,544,131
Dividends from affiliated issuers	127,014
Other	8,571
Total investment income	$9,679,716
Expenses
Management fee	$1,428,880
Distribution and/or service fees	443,285
Shareholder servicing costs	7,652
Administrative services fee	44,071
Independent Trustees’ compensation	7,130
Custodian fee	15,920
Shareholder communications	18,025
Audit and tax fees	74,045
Legal fees	2,083
Miscellaneous	26,091
Total expenses	$2,067,182
Reduction of expenses by investment adviser	(122,329	)
Net expenses	$1,944,853
Net investment income (loss)	$7,734,863

Realized and unrealized gain (loss)
Realized gain (loss) (identified cost basis)
Unaffiliated issuers	$(981,553	)
Affiliated issuers	(522	)
Net realized gain (loss)	$(982,075	)
Change in unrealized appreciation or depreciation
Unaffiliated issuers	$(15,069,903	)
Affiliated issuers	99
Net unrealized gain (loss)	$(15,069,804	)
Net realized and unrealized gain (loss)	$(16,051,879	)
Change in net assets from operations	$(8,317,016	)

See Notes to Financial Statements

MFS Corporate Bond Portfolio

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
	12/31/18			12/31/17
Change in net assets

From operations
Net investment income (loss)		$7,734,863			$8,250,457
Net realized gain (loss)		(982,075	)		2,604,444
Net unrealized gain (loss)		(15,069,804	)		4,667,028
Change in net assets from operations		$(8,317,016	)		$15,521,929
Total distributions to shareholders (a)		$(9,639,419	)		$(9,218,117	)
Change in net assets from fund share transactions		$(30,948,965	)		$(1,820,793	)
Total change in net assets		$(48,905,400	)		$4,483,019

Net assets
At beginning of period		259,781,609			255,298,590
At end of period (b)		$210,876,209			$259,781,609

(a)	Distributions from net investment income and from net realized gain are no longer required to be separately disclosed. See Note 2. For the year ended December 31, 2017, distributions from net investment income were $9,218,117.

(b)	Parenthetical disclosure of undistributed net investment income is no longer required. See Note 2. For the year ended December 31, 2017, end of period net assets included undistributed net investment income of $8,641,907.

See Notes to Financial Statements

MFS Corporate Bond Portfolio

FINANCIAL STATEMENTS ^| FINANCIAL HIGHLIGHTS


Initial Class	Year ended

	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14

Net asset value, beginning of period		$11.64			$11.36			$11.16			$11.76			$11.58

Income (loss) from investment operations
Net investment income (loss) (d)		$0.38			$0.39			$0.41	(c)		$0.42			$0.43
Net realized and unrealized gain (loss)		(0.72	)		0.33			0.31			(0.46	)		0.24
Total from investment operations		$(0.34	)		$0.72			$0.72			$(0.04	)		$0.67

Less distributions declared to shareholders
From net investment income		$(0.44	)		$(0.44	)		$(0.50	)		$(0.48	)		$(0.46	)
From net realized gain		(0.05	)		—			(0.02	)		(0.08	)		(0.03	)
Total distributions declared to shareholders		$(0.49	)		$(0.44	)		$(0.52	)		$(0.56	)		$(0.49	)
Net asset value, end of period (x)		$10.81			$11.64			$11.36			$11.16			$11.76
Total return (%) (k)(r)(s)(x)		(3.00	)		6.39			6.28	(c)		(0.31	)		5.78

Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)		0.68			0.68			0.65	(c)		0.68			0.67
Expenses after expense reductions (f)		0.63			0.63			0.60	(c)		0.63			0.65
Net investment income (loss)		3.44			3.37			3.52	(c)		3.64			3.59
Portfolio turnover		32			36			31			26			36
Net assets at end of period (000 omitted)		$56,506			$65,445			$66,858			$70,980			$79,042

Service Class	Year ended

	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14

Net asset value, beginning of period		$11.49			$11.22			$11.03			$11.63			$11.45

Income (loss) from investment operations
Net investment income (loss) (d)		$0.35			$0.36			$0.37	(c)		$0.39			$0.39
Net realized and unrealized gain (loss)		(0.72	)		0.32			0.30			(0.46	)		0.25
Total from investment operations		$(0.37	)		$0.68			$0.67			$(0.07	)		$0.64

Less distributions declared to shareholders
From net investment income		$(0.41	)		$(0.41	)		$(0.46	)		$(0.45	)		$(0.43	)
From net realized gain		(0.05	)		—			(0.02	)		(0.08	)		(0.03	)
Total distributions declared to shareholders		$(0.46	)		$(0.41	)		$(0.48	)		$(0.53	)		$(0.46	)
Net asset value, end of period (x)		$10.66			$11.49			$11.22			$11.03			$11.63
Total return (%) (k)(r)(s)(x)		(3.31	)		6.11			5.98	(c)		(0.58	)		5.59

Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)		0.93			0.93			0.90	(c)		0.93			0.92
Expenses after expense reductions (f)		0.88			0.88			0.85	(c)		0.88			0.90
Net investment income (loss)		3.18			3.12			3.27	(c)		3.39			3.34
Portfolio turnover		32			36			31			26			36
Net assets at end of period (000 omitted)		$154,370			$194,337			$188,440			$189,946			$211,332

See Notes to Financial Statements

MFS Corporate Bond Portfolio

Financial Highlights – continued

(c)	Amount reflects aone-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher.

(d)	Per share data is based on average shares outstanding.

(f)	Ratios do not reflect reductions from fees paid indirectly, if applicable.

(k)	The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown.

(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.

(x)	The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes.

See Notes to Financial Statements

MFS Corporate Bond Portfolio

NOTES TO FINANCIAL STATEMENTS

(1)

Business and Organization

MFS Corporate Bond Portfolio (the fund) is a diversified series of MFS Variable Insurance Trust II (the trust). The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as anopen-end management investment company. The shareholders of each series of the trust are separate accounts of insurance companies, which offer variable annuity and/or life insurance products, and qualified retirement and pension plans.

(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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated subsequent events occurring after the date of the fund’s Statement of Assets and Liabilities through the date that the financial statements were issued. The fund invests in foreign securities. Investments in foreign securities are vulnerable to the effects of changes in the relative values of the local currency and the U.S. dollar and to the effects of changes in each country’s market, economic, industrial, political, regulatory, geopolitical, and other conditions.

In March 2017, the FASB issued Accounting Standards Update2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic310-20) – Premium Amortization on Purchased Callable Debt Securities (“ASU2017-08”). For entities that hold callable debt securities at a premium, ASU2017-08 requires that the premium be amortized to the earliest call date. ASU2017-08 will be effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Management has evaluated the potential impacts of ASU2017-08 and believes that adoption of ASU2017-08 will not have a material effect on the fund’s overall financial position or its overall results of operations.

Balance Sheet Offsetting – The fund’s accounting policy with respect to balance sheet offsetting is that, absent an event of default by the counterparty or a termination of the agreement, the International Swaps and Derivatives Association (ISDA) Master Agreement, or similar agreement, does not result in an offset of reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities across transactions between the fund and the applicable counterparty. The fund’s right to setoff may be restricted or prohibited by the bankruptcy or insolvency laws of the particular jurisdiction to which a specific master netting agreement counterparty is subject. Balance sheet offsetting disclosures, to the extent applicable to the fund, have been included in the fund’s Significant Accounting Policies note under the captions for each of the fund’sin-scope financial instruments and transactions.

Investment Valuations – Debt instruments and floating rate loans, 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 may be valued at amortized cost, which approximates market value.Open-end investment companies are generally valued at net asset value per share. 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. In determining values, third-party pricing services can utilize both transaction data and market information such as 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.

MFS Corporate Bond Portfolio

Notes to Financial Statements – continued

The Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of the 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 the 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. 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 the 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 the fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the fund determines its net asset value per share.


Financial Instruments	Level 1		Level 2		Level 3		Total
U.S. Treasury Bonds & U.S. Government Agency & Equivalents		$—		$14,467,000		$—		$14,467,000
U.S. Corporate Bonds		—		163,824,209		—		163,824,209
Residential Mortgage-Backed Securities		—		1,276,822		—		1,276,822
Commercial Mortgage-Backed Securities		—		233,016		—		233,016
Asset-Backed Securities (including CDOs)		—		132,769		—		132,769
Foreign Bonds		—		27,301,437		—		27,301,437
Mutual Funds		3,006,790		—		—		3,006,790
Total		$3,006,790		$207,235,253		$—		$210,242,043

For further information regarding security characteristics, see the Portfolio of Investments.

Indemnifications – Under the 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 the fund. Additionally, in the normal course of business, the fund enters into agreements with service providers that may contain indemnification clauses. The 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.

MFS Corporate Bond Portfolio

Notes to Financial Statements – continued

tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability. Foreign taxes, if any, have been accrued by the fund in the accompanying financial statements in accordance with the applicable foreign tax law. Foreign income taxes may be withheld by certain countries in which the fund invests. Additionally, capital gains realized by the fund on securities issued in or by certain foreign countries may be subject to capital gains tax imposed by those countries.

Book/tax differences primarily relate to amortization and accretion of debt securities.

The tax character of distributions declared to shareholders for the last two fiscal years is as follows:


	Year ended 12/31/18		Year ended 12/31/17
Ordinary income (including any short-term capital gains)		$9,320,203		$9,218,117
Long-term capital gains		319,216		—
Total distributions		$9,639,419		$9,218,117

The federal tax cost and the tax basis components of distributable earnings were as follows:


As of 12/31/18

Cost of investments	$217,189,456
Gross appreciation	1,411,152
Gross depreciation	(8,358,565	)
Net unrealized appreciation (depreciation)	$(6,947,413	)

Undistributed ordinary income	8,023,326
Capital loss carryforwards	(1,030,459	)

As of December 31, 2018, the fund had capital loss carryforwards available to offset future realized gains. These net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses. Such losses are characterized as follows:


Short-Term	$(934,200	)
Long-Term	(96,259	)
Total	$(1,030,459	)

Multiple Classes of Shares of Beneficial Interest – The fund offers multiple classes of shares, which differ in their respective distribution and/or service fees. The fund’s 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. The fund’s distributions declared to shareholders as reported in the Statements of Changes in Net Assets are presented by class as follows:


	From net investment income				From net realized gain

	Year ended 12/31/18		Year ended 12/31/17		Year ended 12/31/18		Year ended 12/31/17
Initial Class		$2,333,444		$2,456,713		$245,139		$—
Service Class		6,343,746		6,761,404		717,090		—
Total		$8,677,190		$9,218,117		$962,229		$—

(3)

Transactions with Affiliates


Up to $1 billion			0.60%
In excess of $1 billion			0.50%

MFS Corporate Bond Portfolio

Notes to Financial Statements – continued

MFS has agreed in writing to reduce its management fee by a specified amount if certain MFS mutual fund assets exceed thresholds agreed to by MFS and the fund’s Board of Trustees. For the year ended December 31, 2018, this management fee reduction amounted to $22,667, which is included in the reduction of total expenses in the Statement of Operations. The management fee incurred for the year ended December 31, 2018 was equivalent to an annual effective rate of 0.59% of the fund’s average daily net assets.

The investment adviser has agreed in writing to pay a portion of the fund’s total annual operating expenses, excluding interest, taxes, extraordinary expenses, brokerage and transaction costs, and investment-related expenses, such that total annual operating expenses do not exceed 0.63% of average daily net assets for the Initial Class shares and 0.88% of average daily net assets for the Service Class shares. This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until April 30, 2020. For the year ended December 31, 2018, this reduction amounted to $99,662, which is included in the reduction of total expenses in the Statement of Operations.

Shareholder Servicing Agent– MFS Service Center, Inc. (MFSC), a wholly-owned subsidiary of MFS, receives a fee from the fund for its services as shareholder servicing agent. For the year ended December 31, 2018, the fee was $7,355, which equated to 0.0031% annually of the fund’s average daily net assets. MFSC also receives payment from the fund forout-of-pocket expenses paid by MFSC on behalf of the fund. For the year ended December 31, 2018, these costs amounted to $297.

Other– This fund and certain other funds managed by MFS (the funds) have entered into a service agreement (the ISO Agreement) which provides for payment of fees solely by the funds to Tarantino LLC in return for the provision of services of an Independent Senior Officer (ISO) for the funds. Frank L. Tarantino serves as the ISO and is an officer of the funds and the sole member of Tarantino LLC. The funds can terminate the ISO Agreement with Tarantino LLC at any time under the terms of the ISO Agreement. For the year ended December 31, 2018, the fee paid by the fund under this agreement was $406 and is included in “Miscellaneous” expense in the Statement of Operations. MFS has agreed to bear all expenses associated with office space, other administrative support, and supplies provided to the ISO.

(4)

Portfolio Securities

For the year ended December 31, 2018, purchases and sales of investments, other than short-term obligations, were as follows:


	Purchases		Sales
U.S. Government securities		$15,372,094		$5,776,858
Non-U.S. Government securities		$57,292,054		$89,333,987

MFS Corporate Bond Portfolio

Notes to Financial Statements – continued

(5)

Shares of Beneficial Interest

The 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:


	Year ended 12/31/18						Year ended 12/31/17
	Shares			Amount			Shares			Amount
Shares sold
Initial Class		126,159			$1,417,456			282,268			$3,276,802
Service Class		1,113,987			12,293,052			1,975,574			22,523,964
		1,240,146			$13,710,508			2,257,842			$25,800,766
Shares issued to shareholders in reinvestment of distributions
Initial Class		236,784			$2,578,583			213,071			$2,456,713
Service Class		656,822			7,060,836			593,626			6,761,404
		893,606			$9,639,419			806,697			$9,218,117
Shares reacquired
Initial Class		(756,941	)		$(8,379,096	)		(756,051	)		$(8,767,249	)
Service Class		(4,210,235	)		(45,919,796	)		(2,445,256	)		(28,072,427	)
		(4,967,176	)		$(54,298,892	)		(3,201,307	)		$(36,839,676	)
Net change
Initial Class		(393,998	)		$(4,383,057	)		(260,712	)		$(3,033,734	)
Service Class		(2,439,426	)		(26,565,908	)		123,944			1,212,941
		(2,833,424	)		$(30,948,965	)		(136,768	)		$(1,820,793	)

(6)

Line of Credit

The fund and certain other funds managed by MFS participate in a $1.25 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 Overnight Bank Funding rate or daily one month LIBOR plus an agreed upon spread. A commitment fee, based on the average daily, unused portion of the committed line of credit, is allocated among the participating funds. In addition, the 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, at a rate equal to the Overnight Bank Funding rate plus an agreed upon spread. For the year ended December 31, 2018, the fund’s commitment fee and interest expense were $1,385 and $0, respectively, and are included in “Miscellaneous” expense in the Statement of Operations.

(7)

Investments in Affiliated Issuers


Affiliated Issuers		Beginning Shares/Par Amount		Acquisitions Shares/Par Amount		Dispositions Shares/Par Amount			Ending Shares/Par Amount
MFS Institutional Money Market Portfolio			11,301,365		69,478,254		(77,772,528	)		3,007,091

Affiliated Issuers	Realized Gain (Loss)	Change in Unrealized Appreciation/ Depreciation		Capital Gain Distributions		Dividend Income			Ending Value
MFS Institutional Money Market Portfolio	$(522)		$99		$—		$127,014			$3,006,790

MFS Corporate Bond Portfolio

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees of MFS Variable Insurance Trust II and the Shareholders of

MFS Corporate Bond Portfolio:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities of MFS Corporate Bond Portfolio (the “Fund”), including the portfolio of investments, as of December 31, 2018, the related statement 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of December 31, 2018, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

DELOITTE & TOUCHE LLP

Boston, Massachusetts

February 15, 2019

We have served as the auditor of one or more of the MFS investment companies since 1924.

MFS Corporate Bond Portfolio

TRUSTEES AND OFFICERS – IDENTIFICATION AND BACKGROUND


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds overseen by the Trustee	Principal Occupations During the Past Five Years	Other Directorships During the Past Five Years (j)
INTERESTED TRUSTEES
Robert J. Manning (k) (age 55)	Trustee	February 2004	135	Massachusetts Financial Services Company, Executive Chairman (since January 2017); Director; Chairman of the Board; Chief Executive Officer (until 2015);Co-Chief Executive Officer(2015-2016)	N/A

Robin A. Stelmach (k) (age 57)	Trustee	January 2014	135	Massachusetts Financial Services Company, Vice Chair (since January 2017); Chief Operating Officer and Executive Vice President (until January 2017)	N/A

INDEPENDENT TRUSTEES
John P. Kavanaugh (age 64)	Trustee and Chair of Trustees	January 2009	135	Private investor	N/A

Steven E. Buller (age 67)	Trustee	February 2014	135	Financial Accounting Standards Advisory Council, Chairman(2014-2015); Public Company Accounting Oversight Board, Standing Advisory Group, Member (until 2014); BlackRock, Inc. (investment management), Managing Director (until 2014), BlackRock Finco UK (investment management), Director (until 2014)	N/A

John A. Caroselli (age 64)	Trustee	March 2017	135	JC Global Advisors, LLC (management consulting), President (since 2015); First Capital Corporation (commercial finance), Executive Vice President (until 2015)	N/A

Maureen R. Goldfarb (age 63)	Trustee	January 2009	135	Private investor	N/A

Michael Hegarty (age 74)	Trustee	December 2004	135	Private investor	Rouse Properties Inc., Director (until 2016); Capmark Financial Group Inc., Director (until 2015)

Peter D. Jones (age 63)	Trustee	January 2019	135	Franklin Templeton Distributors, Inc. (investment management), President (until 2015); Franklin Templeton Institutional, LLC (investment management), Chairman (until 2015)	N/A

James W. Kilman, Jr. (age 57)	Trustee	January 2019	135	KielStrand Capital LLC (family office and merchant bank), Chief Executive Officer (since 2016); Morgan Stanley & Co. (financial services), Vice Chairman of Investment Banking,Co-Head of Diversified Financials Coverage – Financial Institutions Investment Banking Group (until 2016)	alpha-En Corporation, Director (since 2016)

MFS Corporate Bond Portfolio

Trustees and Officers – continued


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds overseen by the Trustee	Principal Occupations During the Past Five Years	Other Directorships During the Past Five Years (j)
Clarence Otis, Jr. (age 62)	Trustee	March 2017	135	Darden Restaurants, Inc., Chief Executive Officer (until 2014)	VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director; Federal Reserve Bank of Atlanta, Director (until 2015)

Maryanne L. Roepke (age 62)	Trustee	May 2014	135	American Century Investments (investment management), Senior Vice President and Chief Compliance Officer (until 2014)	N/A

Laurie J. Thomsen (age 61)	Trustee	March 2005	135	Private investor	The Travelers Companies, Director; Dycom Industries, Inc., Director (since 2015)


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds for which the Person is an Officer	Principal Occupations During the Past Five Years
OFFICERS
Christopher R. Bohane (k) (age 45)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Vice President and Assistant General Counsel

Kino Clark (k) (age 50)	Assistant Treasurer	January 2012	135	Massachusetts Financial Services Company, Vice President

John W. Clark, Jr. (k) (age 51)	Assistant Treasurer	April 2017	135	Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head – Treasurer’s Office (until February 2017)

Thomas H. Connors (k) (age 59)	Assistant Secretary and Assistant Clerk	September 2012	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Ethan D. Corey (k) (age 55)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel

David L. DiLorenzo (k) (age 50)	President	July 2005	135	Massachusetts Financial Services Company, Senior Vice President

Heidi W. Hardin (k) (age 51)	Secretary and Clerk	April 2017	135	Massachusetts Financial Services Company, Executive Vice President and General Counsel (since March 2017); Harris Associates (investment management), General Counsel (from September 2015 to January 2017); Janus Capital Management LLC (investment management), Senior Vice President and General Counsel (until September 2015)

Brian E. Langenfeld (k) (age 45)	Assistant Secretary and Assistant Clerk	June 2006	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Amanda S. Mooradian (k) (age 39)	Assistant Secretary and Assistant Clerk	September 2018	135	Massachusetts Financial Services Company, Assistant Vice President and Counsel

Susan A. Pereira (k) (age 48)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Kasey L. Phillips (k) (age 48)	Assistant Treasurer	September 2012	135	Massachusetts Financial Services Company, Vice President

Matthew A. Stowe (k) (age 44)	Assistant Secretary and Assistant Clerk	October 2014	135	Massachusetts Financial Services Company, Vice President and Assistant General Counsel

MFS Corporate Bond Portfolio

Trustees and Officers – continued


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds for which the Person is an Officer	Principal Occupations During the Past Five Years
Frank L. Tarantino (age 74)	Independent Senior Officer	June 2004	135	Tarantino LLC (provider of compliance services), Principal

Richard S. Weitzel (k) (age 48)	Assistant Secretary and Assistant Clerk	October 2007	135	Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel

Martin J. Wolin (k) (age 51)	Chief Compliance Officer	July 2015	135	Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer (since July 2015); Mercer (financial service provider), Chief Risk and Compliance Officer, North America and Latin America (until June 2015)

James O. Yost (k) (age 58)	Treasurer	September 1990	135	Massachusetts Financial Services Company, Senior Vice President

(h)

(j)	Directorships or trusteeships of companies required to report to the Securities and Exchange Commission (i.e., “public companies”).

(k)

Messrs. Buller, Hegarty, Kilman and Otis and Ms. Roepke are members of the Trust’s Audit Committee.

Each of the Interested Trustees and certain Officers hold comparable officer positions with certain affiliates of MFS.

The Statement of Additional Information for a Fund includes further information about the Trustees and is available without charge upon request by calling1-800-225-2606.


Investment Adviser Massachusetts Financial Services Company 111 Huntington Avenue Boston, MA 02199-7618		Custodian State Street Bank and Trust Company 1 Lincoln Street Boston, MA 02111-2900
Distributor MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618		Independent Registered Public Accounting Firm Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116
Portfolio Manager(s) Alexander Mackey Robert Persons

MFS Corporate Bond Portfolio

BOARD REVIEW OF INVESTMENT ADVISORY AGREEMENT

Based on information provided by Broadridge and MFS, the Trustees reviewed the Fund’s total return investment performance as well as the Broadridge performance universe over various time periods. The Trustees placed particular emphasis on the total return performance of the Fund’s Initial Class shares in comparison to the performance of funds in its Broadridge performance universe over the three-year period ended December 31, 2017, which the Trustees believed was a long enough period to reflect differing market conditions. The total return performance of the Fund’s Initial Class shares was in the 1st quintile relative to the other funds in the universe for this three-year period (the 1st quintile being the best performers and the 5th quintile being the worst performers). The total return performance of the Fund’s Initial Class shares was in the 1st quintile for theone-year period and the 2nd quintile for the five-year period ended December 31, 2017 relative to the Broadridge performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.

In the course of their deliberations, the Trustees took into account information provided by MFS in connection with the contract review meetings, as well as during investment review meetings conducted with portfolio management personnel during the course of the year regarding the Fund’s performance. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the investment advisory agreement, that they were satisfied with MFS’ responses and efforts relating to investment performance.

MFS Corporate Bond Portfolio

Board Review of Investment Advisory Agreement – continued

In assessing the reasonableness of the Fund’s advisory fee, the Trustees considered, among other information, the Fund’s advisory fee and the total expense ratio of the Fund’s Initial Class shares as a percentage of average daily net assets and the advisory fee and total expense ratios of peer groups of funds based on information provided by Broadridge. The Trustees considered that MFS currently observes an expense limitation for the Fund, which may not be changed without the Trustees’ approval. The Trustees also considered that, according to the data provided by Broadridge (which takes into account any fee reductions or expense limitations that were in effect during the Fund’s last fiscal year), the Fund’s effective advisory fee rate and total expense ratio were each approximately at the Broadridge expense group median.

The Trustees also considered whether the Fund may benefit from any economies of scale in the management of the Fund in the event of growth in assets of the Fund and/or growth in assets of the MFS Funds as a whole. They noted that the Fund’s advisory fee rate schedule is subject to a contractual breakpoint that reduces the Fund’s advisory fee rate on average daily net assets over $1 billion. The Trustees also noted that MFS has agreed in writing to waive a portion of the management fees of certain MFS Funds, including the Fund, if the total combined assets of certain funds within the MFS Funds’ complex increase above agreed upon thresholds (the “group fee waiver”), enabling the Fund’s shareholders to share in the benefits from any economies of scale at the complex level. The group fee waiver is reviewed and renewed annually between the Board and MFS. The Trustees concluded that the breakpoint and the group fee waiver were sufficient to allow the Fund to benefit from economies of scale as its assets and overall complex assets grow.

MFS Corporate Bond Portfolio

PROXY VOTING POLICIES AND INFORMATION

QUARTERLY PORTFOLIO DISCLOSURE

FURTHER INFORMATION

INFORMATION ABOUT FUND CONTRACTS AND LEGAL CLAIMS

FEDERAL TAX INFORMATION (unaudited)

The following information is provided pursuant to provisions of the Internal Revenue Code.

The fund designates $352,000 as capital gain dividends paid during the fiscal year.

rev. 3/16



FACTS		WHAT DOES MFS DO WITH YOUR PERSONAL INFORMATION?


Why?		Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.

What?

The types of personal information we collect and share depend on the product or service you have with us. This information can include:

• Social Security number and account balances

• Account transactions and transaction history

• Checking account information and wire transfer instructions

When you areno longer our customer, we continue to share your information as described in this notice.


How?		All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons MFS chooses to share; and whether you can limit this sharing.


Reasons we can share your personal information	Does MFS share?	Can you limit this sharing?
For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes – to offer our products and services to you	No	We don’t share
For joint marketing with other financial companies	No	We don’t share
For our affiliates’ everyday business purposes – information about your transactions and experiences	No	We don’t share
For our affiliates’ everyday business purposes – information about your creditworthiness	No	We don’t share
For nonaffiliates to market to you	No	We don’t share



Questions?		Call800-225-2606 or go tomfs.com.


Page 2


Who we are
Who is providing this notice?		MFS Funds, MFS Investment Management, MFS Institutional Advisors, Inc., and MFS Heritage Trust Company.


What we do
How does MFS protect my personal information?		To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include procedural, electronic, and physical safeguards for the protection of the personal information we collect about you.
How does MFS collect my personal information?		We collect your personal information, for example, when you • open an account or provide account information • direct us to buy securities or direct us to sell your securities • make a wire transfer We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can’t I limit all sharing?		Federal law gives you the right to limit only • sharing for affiliates’ everyday business purposes – information about your creditworthiness • affiliates from using your information to market to you • sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing.


Definitions
Affiliates		Companies related by common ownership or control. They can be financial and nonfinancial companies. • MFS does not share personal information with affiliates, except for everyday business purposes as described on page one of this notice.
Nonaffiliates		Companies not related by common ownership or control. They can be financial and nonfinancial companies. • MFS does not share with nonaffiliates so they can market to you.
Joint marketing		A formal agreement between nonaffiliated financial companies that together market financial products or services to you. • MFS doesn’t jointly market.


Other important information
If you own an MFS product or receive an MFS service in the name of a third party such as a bank or broker-dealer, their privacy policy may apply to you instead of ours.

LOGO

Annual Report

December 31, 2018

LOGO

MFS^® Core Equity Portfolio

LOGO

MFS^® Variable Insurance Trust II

RGS-ANN

MFS® Core Equity Portfolio

CONTENTS

The report is prepared for the general information of contract owners. 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 OR CREDIT UNION GUARANTEE• NOT A DEPOSIT• NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY OR NCUA/NCUSIF

MFS Core Equity Portfolio

LETTER FROM THE EXECUTIVE CHAIRMAN

LOGO

Dear Contract Owners:

Respectfully,

LOGO

Robert J. Manning

Executive Chairman

MFS Investment Management

February 15, 2019

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

MFS Core Equity Portfolio

PORTFOLIO COMPOSITION

Portfolio structure

LOGO


Top ten holdings
Amazon.com, Inc.					2.9%
Alphabet, Inc., “A”					2.8%
Microsoft Corp.					2.4%
American Tower Corp., REIT					2.3%
Johnson & Johnson					2.2%
Pfizer, Inc.					2.1%
Chevron Corp.					2.0%
Analog Devices, Inc.					2.0%
Aon PLC					1.9%
Facebook, Inc., “A”					1.8%


Global equity sectors (k)
Technology			23.6%
Financial Services			17.8%
Health Care			15.0%
Capital Goods			13.5%
Consumer Cyclicals			11.4%
Energy			8.4%
Consumer Staples			5.2%
Telecommunications/Cable Television (s)			3.6%

(k)	The sectors set forth above and the associated portfolio composition are based on MFS’ own custom sector classification methodology.

(s)	Includes securities sold short.

Percentages are based on net assets as of December 31, 2018.

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

MFS Core Equity Portfolio

MANAGEMENT REVIEW

Summary of Results

For the twelve months ended December 31, 2018, Initial Class shares of the MFS Core Equity Portfolio (“fund”) provided a total return of –3.83%, while Service Class shares of the fund provided a total return of –4.07%. These compare with a return of –5.24% over the same period for the fund’s benchmark, the Russell 3000® Index.

Market Environment

Contributors to Performance

Security selection within both thecapital goods andtelecommunications/cable television sectors was a primary factor that contributed to the fund’s performance relative to the Russell 3000® Index. Within thecapital goods sector, not holding shares of poor-performing diversified industrial conglomerate General Electric helped relative results. Shares of General Electric struggled as impairment charges related to the company’s insurance reserves, weakness in its power division and poor free cash flow generation led the company’s management to slash its dividend and lower its forward earnings guidance. Within thetelecommunications/cable television sector, the fund’s overweight position in broadcast and communication tower management firm American Tower benefited relative returns. Shares of American Tower outpaced the benchmark, notably late in the period, as the company reported strong growth in domestic property revenue and raised its earnings outlook for the upcoming year.

Elsewhere, the fund’s overweight positions in customer information software manager Salesforce.com, software company Adobe Systems, pharmaceutical giant Pfizer, real estate investment trust Medical Properties Trust, risk management and human capital consulting services provider Aon and animal health products manufacturer Zoetis supported relative returns. An underweight position in poor-performing diversified financial services firm Wells Fargo (h) also helped relative results.

Detractors from Performance

The combination of stock selection and a modest overweight position in theconsumer staples sector held back relative performance during the reporting period. Notably, the timing of the fund’s overweight position in beauty products company Coty (h) hindered relative returns. Shares of Coty fell as on-going execution challenges, including a difficult retail environment and disruptions in the company’s supply chain, weighed on corporate profits.

Stocks in other sectors that detracted from relative performance included overweight positions in financial services firm Citigroup, computer graphics processors maker NVIDIA, onshore oil and gas drilling services provider Patterson-UTI Energy, regional banking firm Bank OZK, specialty retailer L Brands and social media company Facebook. Shares of Facebook declined over the reporting period as data privacy concerns, in the wake of the Cambridge Analytica scandal, appeared to have weighed on investor sentiment. The company also faced new privacy regulatory challenges, such as the European Data Protection Regulation (GDPR), which hurt its

MFS Core Equity Portfolio

Management Review – continued

advertising sales. Not holding shares of pharmaceutical company Merck & Co., an underweight position in strong-performing software giant Microsoft, and the timing of the fund’s underweight position in streaming media service Netflix also weakened relative results.

Respectfully,

Portfolio Manager(s)

Joseph MacDougall

(h)	Security was not held in the portfolio at period end.

MFS Core Equity Portfolio

PERFORMANCE SUMMARY THROUGH 12/31/18

Growth of a Hypothetical $10,000 Investment

LOGO

Total Returns through 12/31/18

Average annual total returns


	Share Class	Class Inception Date	1-yr	5-yr	10-yr
	Initial Class	5/12/97	(3.83)%	8.24%	13.64%
	Service Class	8/24/01	(4.07)%	7.97%	13.36%

Comparative benchmark(s)
	Russell 3000® Index (f)		(5.24)%	7.91%	13.18%

(f)	Source: FactSet Research Systems Inc.

Benchmark Definition(s)

Russell 3000® Index – constructed to provide a comprehensive barometer for the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market. The Russell 3000® Index is a trademark/service mark of the Frank Russell Company. Russell® is a trademark of the Frank Russell Company.

It is not possible to invest directly in an index.

Notes to Performance Summary

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

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

MFS Core Equity Portfolio

EXPENSE TABLE

Fund Expenses Borne by the Contract Holders during the Period,

July 1, 2018 through December 31, 2018

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period

July 1, 2018 through December 31, 2018.

Actual Expenses

account during this period.

Hypothetical Example for Comparison Purposes

higher.


Share Class		Annualized Expense Ratio		Beginning Account Value 7/01/18		Ending Account Value 12/31/18		Expenses Paid During Period (p) 7/01/18-12/31/18
Initial Class	Actual		0.86%		$1,000.00		$923.95		$4.17
Initial Class	Hypothetical (h)		0.86%		$1,000.00		$1,020.87		$4.38
Service Class	Actual		1.11%		$1,000.00		$922.73		$5.38
Service Class	Hypothetical (h)		1.11%		$1,000.00		$1,019.61		$5.65

(h)	5% class return per year before expenses.

(p)	“Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect theone-half year period).

Notes to Expense Table

Expense ratios include 0.02% of investment related expenses from short sales (See Note 2 of the Notes to Financial Statements) that are outside of the expense limitation arrangement (See Note 3 of the Notes to Financial Statements).

MFS Core Equity Portfolio

PORTFOLIO OF INVESTMENTS – 12/31/18

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


Issuer	Shares/Par		Value ($)
COMMON STOCKS – 98.8%
Aerospace – 3.4%
Boeing Co.		4,575	$	1,475,438
CACI International, Inc., “A” (a)		2,040		293,821
Curtiss-Wright Corp.		3,635		371,206
FLIR Systems, Inc.		3,162		137,674
Honeywell International, Inc.		12,471		1,647,669
Northrop Grumman Corp.		5,646		1,382,705
United Technologies Corp.		10,182		1,084,179

			$	6,392,692

Alcoholic Beverages – 0.3%
Constellation Brands, Inc., “A”		3,404	$	547,431

Apparel Manufacturers – 0.7%
NIKE, Inc., “B”		13,079	$	969,677
Skechers USA, Inc., “A” (a)		15,881		363,516

			$	1,333,193

Automotive – 0.6%
Copart, Inc. (a)		8,207	$	392,131
Lear Corp.		4,057		498,443
Stoneridge, Inc. (a)		10,633		262,103

			$	1,152,677

Biotechnology – 1.1%
Biogen, Inc. (a)		5,259	$	1,582,538
Illumina, Inc. (a)		1,312		393,508

			$	1,976,046

Broadcasting – 0.2%
Netflix, Inc. (a)		1,187	$	317,712

Brokerage & Asset Managers – 2.2%
Blackstone Group LP		28,067	$	836,677
HealthEquity, Inc. (a)		3,467		206,806
Invesco Ltd.		20,170		337,646
TD Ameritrade Holding Corp.		37,659		1,843,785
TMX Group Ltd.		15,803		818,742

			$	4,043,656

Business Services – 3.3%
Amdocs Ltd.		7,651	$	448,196
Cognizant Technology Solutions Corp., “A”		13,223		839,396
DXC Technology Co.		10,574		562,219
Equinix, Inc., REIT		1,487		524,257
Fidelity National Information Services, Inc.		9,625		987,044
First Data Corp. (a)		18,937		320,225
Global Payments, Inc.		7,687		792,760
Grand Canyon Education, Inc. (a)		2,871		276,018
Total System Services, Inc.		5,546		450,834
Verisk Analytics, Inc., “A” (a)		8,223		896,636

			$	6,097,585

Cable TV – 0.9%
Altice USA, Inc.		32,894	$	543,409
Comcast Corp., “A”		34,390		1,170,979

			$	1,714,388


Issuer	Shares/Par		Value ($)
COMMON STOCKS – continued
Chemicals – 2.3%
CF Industries Holdings, Inc.		13,895	$	604,571
DowDuPont, Inc.		21,731		1,162,174
Eastman Chemical Co.		4,456		325,778
FMC Corp.		6,189		457,738
Ingevity Corp. (a)		4,630		387,485
PPG Industries, Inc.		12,868		1,315,496

			$	4,253,242

Computer Software – 6.3%
8x8, Inc. (a)		43,732	$	788,925
Adobe Systems, Inc. (a)		9,713		2,197,469
Autodesk, Inc. (a)		4,382		563,569
Cadence Design Systems, Inc. (a)		15,147		658,592
Microsoft Corp.		44,110		4,480,253
Salesforce.com, Inc. (a)		22,499		3,081,688

			$	11,770,496

Computer Software – Systems – 1.4%
Apple, Inc.		10,696	$	1,687,187
Pluralsight, Inc., “A” (a)		17,748		417,966
Rapid7, Inc. (a)		18,145		565,398

			$	2,670,551

Construction – 0.8%
Toll Brothers, Inc.		19,913	$	655,735
Vulcan Materials Co.		8,760		865,488

			$	1,521,223

Consumer Products – 1.6%
Colgate-Palmolive Co.		14,176	$	843,756
Kimberly-Clark Corp.		6,488		739,243
Newell Brands, Inc.		25,333		470,940
Procter & Gamble Co.		10,320		948,614

			$	3,002,553

Consumer Services – 1.3%
Bookings Holdings, Inc. (a)		1,138	$	1,960,114
Bright Horizons Family Solutions, Inc. (a)		3,554		396,093

			$	2,356,207

Containers – 0.5%
Berry Global Group, Inc. (a)		14,950	$	710,574
Sealed Air Corp.		8,661		301,749

			$	1,012,323

Electrical Equipment – 2.2%
AMETEK, Inc.		20,314	$	1,375,258
Fortive Corp.		7,077		478,830
HD Supply Holdings, Inc. (a)		14,530		545,165
Resideo Technologies, Inc. (a)		2,078		42,703
Sensata Technologies Holding PLC (a)		16,522		740,846
TE Connectivity Ltd.		7,447		563,217
WESCO International, Inc. (a)		5,410		259,680

			$	4,005,699

MFS Core Equity Portfolio

Portfolio of Investments – continued


Issuer	Shares/Par		Value ($)
COMMON STOCKS – continued
Electronics – 5.6%
Analog Devices, Inc.		42,870	$	3,679,532
IPG Photonics Corp. (a)		1,310		148,410
Lam Research Corp.		1,243		169,259
Marvell Technology Group Ltd.		74,143		1,200,375
Mellanox Technologies Ltd. (a)		2,670		246,655
Monolithic Power Systems, Inc.		1,464		170,190
NVIDIA Corp.		11,344		1,514,424
Silicon Laboratories, Inc. (a)		3,516		277,096
Texas Instruments, Inc.		31,120		2,940,840

			$	10,346,781

Energy – Independent – 1.9%
Concho Resources, Inc. (a)		4,893	$	502,952
Diamondback Energy, Inc.		1,901		176,223
EOG Resources, Inc.		14,102		1,229,835
Hess Corp.		13,173		533,507
Marathon Petroleum Corp.		15,714		927,283
Parsley Energy, Inc., “A” (a)		8,632		137,939

			$	3,507,739

Energy – Integrated – 2.0%
Chevron Corp. (s)		33,893	$	3,687,220

Engineering – Construction – 0.2%
KBR, Inc.		19,160	$	290,849

Entertainment – 0.3%
Six Flags Entertainment Corp.		9,513	$	529,208

Food & Beverages – 2.6%
Archer Daniels Midland Co.		9,548	$	391,182
Coca-Cola Co.		19,412		919,158
Hostess Brands, Inc. (a)		16,396		179,372
J.M. Smucker Co.		3,729		348,624
Mondelez International, Inc.		28,129		1,126,004
PepsiCo, Inc.		17,673		1,952,513

			$	4,916,853

Gaming & Lodging – 0.8%
Hilton Worldwide Holdings, Inc.		17,154	$	1,231,657
Marriott International, Inc., “A”		3,001		325,789

			$	1,557,446

General Merchandise – 0.4%
Dollar Tree, Inc. (a)		7,314	$	660,601

Health Maintenance Organizations – 1.9%
Cigna Corp.		10,600	$	2,013,152
Humana Inc.		5,105		1,462,480

			$	3,475,632

Insurance – 4.3%
Aon PLC		24,387	$	3,544,894
Assurant, Inc.		7,668		685,826
Athene Holding Ltd. (a)		9,442		376,075
Chubb Ltd.		13,973		1,805,032
Everest Re Group Ltd.		1,823		396,977
Hartford Financial Services Group, Inc.		28,800		1,280,160

			$	8,088,964


Issuer	Shares/Par		Value ($)
COMMON STOCKS – continued
Internet – 5.7%
Alphabet, Inc., “A” (a)(s)		4,956	$	5,178,822
Facebook, Inc., “A” (a)		25,773		3,378,583
LogMeIn, Inc.		11,114		906,569
MINDBODY, Inc., “A” (a)		30,856		1,123,158

			$	10,587,132

Leisure & Toys – 0.8%
Brunswick Corp.		5,008	$	232,621
Electronic Arts, Inc. (a)		12,647		997,975
Take-Two Interactive Software, Inc. (a)		2,870		295,438

			$	1,526,034

Machinery & Tools – 1.4%
Flowserve Corp.		11,931	$	453,617
Illinois Tool Works, Inc.		5,404		684,633
ITT, Inc.		8,860		427,672
Roper Technologies, Inc.		3,820		1,018,106

			$	2,584,028

Major Banks – 1.9%
Goldman Sachs Group, Inc.		11,401	$	1,904,537
PNC Financial Services Group, Inc.		9,314		1,088,900
State Street Corp.		9,703		611,968

			$	3,605,405

Medical & Health Technology & Services – 1.5%
Guardant Health, Inc. (a)		3,891	$	146,263
HCA Healthcare, Inc.		7,659		953,162
ICON PLC (a)		3,276		423,292
McKesson Corp.		6,506		718,718
Walgreens Boots Alliance, Inc.		8,534		583,128

			$	2,824,563

Medical Equipment – 3.7%
Abiomed, Inc. (a)		735	$	238,904
Boston Scientific Corp. (a)		31,832		1,124,943
Danaher Corp.		6,620		682,654
Medtronic PLC		27,135		2,468,200
PerkinElmer, Inc.		10,834		851,011
Senseonics Holdings, Inc. (a)(l)		29,409		76,169
STERIS PLC		11,268		1,203,986
West Pharmaceutical Services, Inc.		2,027		198,707

			$	6,844,574

Metals & Mining – 0.2%
Teck Resources Ltd., “B”		14,168	$	305,179

Natural Gas – Pipeline – 0.5%
Enterprise Products Partners LP		20,462	$	503,160
Equitrans Midstream Corp. (a)		17,831		356,977

			$	860,137

Network & Telecom – 1.3%
Cisco Systems, Inc.		50,938	$	2,207,143
Interxion Holding N.V. (a)		4,992		270,367

			$	2,477,510

MFS Core Equity Portfolio

Portfolio of Investments – continued



Issuer	Shares/Par		Value ($)
COMMON STOCKS – continued
Oil Services – 0.6%
Apergy Corp. (a)		8,651	$	234,269
Cactus, Inc., “A” (a)		10,206		279,746
Core Laboratories N.V.		2,332		139,127
Patterson-UTI Energy, Inc.		31,506		326,087
Schlumberger Ltd.		5,095		183,828

			$	1,163,057

Other Banks & Diversified Financials – 6.3%
Bank OZK		25,194	$	575,179
BB&T Corp.		27,103		1,174,102
Citigroup, Inc. (s)		45,321		2,359,411
EuroDekania Ltd. (u)		151,350		18,858
Mastercard, Inc., “A”		16,769		3,163,472
Prosperity Bancshares, Inc.		3,576		222,785
Signature Bank		11,882		1,221,589
U.S. Bancorp		51,049		2,332,939
Wintrust Financial Corp.		8,873		589,966

			$	11,658,301

Pharmaceuticals – 6.9%
Bristol-Myers Squibb Co.		31,696	$	1,647,558
Elanco Animal Health, Inc. (a)		33,821		1,066,376
Johnson & Johnson		32,376		4,178,123
Pfizer, Inc.		88,123		3,846,569
Zoetis, Inc.		24,856		2,126,182

			$	12,864,808

Pollution Control – 0.4%
Evoqua Water Technologies LLC (a)		26,408	$	253,517
Waste Connections, Inc.		6,678		495,841

			$	749,358

Railroad & Shipping – 1.3%
Canadian Pacific Railway Ltd.		7,375	$	1,309,948
Kansas City Southern Co.		12,311		1,175,085

			$	2,485,033

Real Estate – 3.1%
Industrial Logistics Properties Trust, REIT		40,996	$	806,391
Life Storage, Inc., REIT		2,850		265,022
Medical Properties Trust, Inc., REIT		142,167		2,286,045
Store Capital Corp., REIT		35,024		991,529
Sun Communities, Inc., REIT		4,476		455,254
W.P. Carey, Inc., REIT		15,070		984,674

			$	5,788,915

Restaurants – 1.6%
Aramark		16,637	$	481,974
Starbucks Corp.		29,986		1,931,098
U.S. Foods Holding Corp. (a)		16,359		517,599

			$	2,930,671

Specialty Chemicals – 0.1%
Univar, Inc. (a)		14,672	$	260,281

Specialty Stores – 5.4%
Amazon.com, Inc. (a)		3,577	$	5,372,547
Costco Wholesale Corp.		6,751		1,375,246



Issuer		Shares/Par			Value ($)
COMMON STOCKS – continued
Specialty Stores – continued
L Brands, Inc.			15,187		$	389,850
TJX Cos., Inc.			28,254			1,264,084
Tractor Supply Co.			12,384			1,033,321
Urban Outfitters, Inc. (a)			19,042			632,195

					$	10,067,243

Telecommunications – Wireless – 2.3%
American Tower Corp., REIT			27,659		$	4,375,377

Telephone Services – 0.7%
Verizon Communications, Inc.			22,288		$	1,253,031

Tobacco – 0.7%
Philip Morris International, Inc.	��		18,284		$	1,220,640

Utilities – Electric Power – 3.3%
American Electric Power Co., Inc.			11,496		$	859,211
Avangrid, Inc.			8,766			439,089
CenterPoint Energy, Inc.			20,025			565,306
CMS Energy Corp.			14,979			743,707
Evergy, Inc.			11,540			655,126
Exelon Corp.			22,081			995,853
NextEra Energy, Inc.			6,957			1,209,266
Xcel Energy, Inc.			15,159			746,884

					$	6,214,442

Total Common Stocks (Identified Cost, $158,771,202)					$	183,874,686


CONVERTABLE PREFERRED STOCKS – 0.1%
Natural Gas – Distribution – 0.1%
South Jersey Industries, Inc., 7.25% (Identified Cost, $210,150)			4,203		$	195,229


INVESTMENT COMPANIES (h) – 1.5%
Money Market Funds – 1.5%
MFS Institutional Money Market Portfolio, 2.4% (v) (Identified Cost, $2,863,869)			2,864,156		$	2,863,869


COLLATERAL FOR SECURITIES LOANED – 0.0%
State Street Navigator Securities Lending Government Money Market Portfolio, 2.29% (j) (Identified Cost, $102)			102		$	102


SECURITIES SOLD SHORT – (0.4)%
Telecommunications – Wireless – (0.4)%
Crown Castle International Corp., REIT (Proceeds Received, $578,274)			(6,970	)	$	(757,151	)

OTHER ASSETS, LESS LIABILITIES – 0.0%						9,640

NET ASSETS – 100.0%					$	186,186,375

(a)

Non-income producing security.

(h)

MFS Core Equity Portfolio

Portfolio of Investments – continued

(j)

The rate quoted is the annualizedseven-day yield of the fund at period end.

(l)

A portion of this security is on loan. See Note 2 for additional information.

(s)

Security or a portion of the security was pledged to cover collateral requirements for securities sold short.

(u)

The security was valued using significant unobservable inputs and is considered level 3 under the fair value hierarchy. For further information about the fund’s level 3 holdings, please see Note 2 in the Notes to Financial Statements.

(v)

The following abbreviations are used in this report and are defined:

PLC

Public Limited Company

REIT

Real Estate Investment Trust

At December 31, 2018, the fund had cash collateral of $5,007 and other liquid securities with an aggregate value of $1,440,751 to cover any collateral or margin obligations for securities sold short. Restricted cash and/or deposits with brokers in the Statement of Assets and Liabilities are comprised of cash collateral.

See Notes to Financial Statements

MFS Core Equity Portfolio

FINANCIAL STATEMENTS ^| STATEMENT OF ASSETS AND LIABILITIES

This statement represents your fund’s balance sheet, which details the assets and liabilities comprising the total value of the fund.


At 12/31/18

Assets
Investments in unaffiliated issuers, at value, including $23,074 of securities on loan (identified cost, $158,981,454)			$184,070,017
Investments in affiliated issuers, at value (identified cost, $2,863,869)			2,863,869
Deposits with brokers for
Securities sold short			5,007
Receivables for
Fund shares sold			36,789
Interest and dividends			264,520
Other assets			1,581
Total assets			$187,241,783

Liabilities
Payable to custodian			$483
Payables for
Securities sold short, at value (proceeds received, $578,274)			757,151
Investments purchased			27,653
Fund shares reacquired			187,999
Collateral for securities loaned, at value (c)			102
Payable to affiliates
Investment adviser			15,352
Shareholder servicing costs			122
Distribution and/or service fees			1,121
Payable for independent Trustees’ compensation			8
Accrued expenses and other liabilities			65,417
Total liabilities			$1,055,408
Net assets			$186,186,375

Net assets consist of
Paid-in capital			$133,548,866
Total distributable earnings (loss)			52,637,509
Net assets			$186,186,375
Shares of beneficial interest outstanding			8,610,514



	Net assets		Shares outstanding		Net asset value per share
Initial Class		$144,991,368		6,689,005		$21.68
Service Class		41,195,007		1,921,509		21.44

(c)	Non-cash collateral is not included.

See Notes to Financial Statements

MFS Core Equity Portfolio

FINANCIAL STATEMENTS ^| STATEMENT OF OPERATIONS

This statement describes how much your fund earned in investment income and accrued in expenses. It also describes any gains and/or losses generated by fund operations.


Year ended 12/31/18

Net investment income (loss)
Income
Dividends	$3,440,199
Dividends from affiliated issuers	32,863
Other	23,540
Income on securities loaned	3,592
Foreign taxes withheld	(7,307	)
Total investment income	$3,492,887
Expenses
Management fee	$1,593,535
Distribution and/or service fees	113,253
Shareholder servicing costs	15,011
Administrative services fee	40,405
Independent Trustees’ compensation	7,084
Custodian fee	12,845
Shareholder communications	34,981
Audit and tax fees	55,869
Legal fees	1,909
Dividend and interest expense on securities sold short	49,601
Miscellaneous	26,964
Total expenses	$1,951,457
Reduction of expenses by investment adviser	(20,236	)
Net expenses	$1,931,221
Net investment income (loss)	$1,561,666

Realized and unrealized gain (loss)
Realized gain (loss) (identified cost basis)
Unaffiliated issuers	$26,562,529
Affiliated issuers	(94	)
Foreign currency	(418	)
Net realized gain (loss)	$26,562,017
Change in unrealized appreciation or depreciation
Unaffiliated issuers	$(34,659,218	)
Securities sold short	16,590
Translation of assets and liabilities in foreign currencies	(8	)
Net unrealized gain (loss)	$(34,642,636	)
Net realized and unrealized gain (loss)	$(8,080,619	)
Change in net assets from operations	$(6,518,953	)

See Notes to Financial Statements

MFS Core Equity Portfolio

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
	12/31/18			12/31/17
Change in net assets

From operations
Net investment income (loss)		$1,561,666			$1,381,451
Net realized gain (loss)		26,562,017			22,187,860
Net unrealized gain (loss)		(34,642,636	)		22,538,765
Change in net assets from operations		$(6,518,953	)		$46,108,076
Total distributions to shareholders (a)		$(23,497,053	)		$(13,943,084	)
Change in net assets from fund share transactions		$(1,288,330	)		$(13,597,982	)
Total change in net assets		$(31,304,336	)		$18,567,010

Net assets
At beginning of period		217,490,711			198,923,701
At end of period (b)		$186,186,375			$217,490,711

(a)	Distributions from net investment income and from net realized gain are no longer required to be separately disclosed. See Note 2. For the year ended December 31, 2017, distributions from net investment income and from net realized gain were $1,852,020 and $12,091,064, respectively.

(b)	Parenthetical disclosure of undistributed net investment income is no longer required. See Note 2. For the year ended December 31, 2017, end of period net assets included undistributed net investment income of $1,381,318.

See Notes to Financial Statements

MFS Core Equity Portfolio

FINANCIAL STATEMENTS ^| FINANCIAL HIGHLIGHTS


Initial Class	Year ended

	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14

Net asset value, beginning of period		$25.21			$21.67			$21.28			$23.40			$21.49

Income (loss) from investment operations
Net investment income (loss) (d)		$0.20			$0.17			$0.21	(c)		$0.17			$0.16
Net realized and unrealized gain (loss)		(0.78	)		5.04			2.16			(0.35	)		2.27
Total from investment operations		$(0.58	)		$5.21			$2.37			$(0.18	)		$2.43

Less distributions declared to shareholders
From net investment income		$(0.18	)		$(0.23	)		$(0.17	)		$(0.13	)		$(0.18	)
From net realized gain		(2.77	)		(1.44	)		(1.81	)		(1.81	)		(0.34	)
Total distributions declared to shareholders		$(2.95	)		$(1.67	)		$(1.98	)		$(1.94	)		$(0.52	)
Net asset value, end of period (x)		$21.68			$25.21			$21.67			$21.28			$23.40
Total return (%) (k)(r)(s)(x)		(3.83	)		24.82			11.38	(c)		(0.21	)		11.38

Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)		0.87			0.87			0.84	(c)		0.86			0.85
Expenses after expense reductions (f)		0.86			0.86			0.82	(c)		0.85			0.84
Net investment income (loss)		0.79			0.72			1.00	(c)		0.75			0.74
Portfolio turnover		40			39			60			50			48
Net assets at end of period (000 omitted)		$144,991			$171,038			$156,040			$156,450			$115,826

Supplemental Ratios (%):
Ratio of expenses to average net assets after expense reductions excluding short sale expenses and interest expense and fees (f)		0.83			0.84			0.80	(c)		0.84			0.84

See Notes to Financial Statements

MFS Core Equity Portfolio

Financial Highlights – continued


Service Class	Year ended

	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14

Net asset value, beginning of period		$24.96			$21.47			$21.10			$23.20			$21.32

Income (loss) from investment operations
Net investment income (loss) (d)		$0.14			$0.11			$0.16	(c)		$0.11			$0.11
Net realized and unrealized gain (loss)		(0.78	)		4.99			2.13			(0.33	)		2.24
Total from investment operations		$(0.64	)		$5.10			$2.29			$(0.22	)		$2.35

Less distributions declared to shareholders
From net investment income		$(0.11	)		$(0.17	)		$(0.11	)		$(0.07	)		$(0.13	)
From net realized gain		(2.77	)		(1.44	)		(1.81	)		(1.81	)		(0.34	)
Total distributions declared to shareholders		$(2.88	)		$(1.61	)		$(1.92	)		$(1.88	)		$(0.47	)
Net asset value, end of period (x)		$21.44			$24.96			$21.47			$21.10			$23.20
Total return (%) (k)(r)(s)(x)		(4.07	)		24.50			11.07	(c)		(0.40	)		11.07

Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)		1.12			1.12			1.09	(c)		1.11			1.10
Expenses after expense reductions (f)		1.11			1.11			1.07	(c)		1.10			1.09
Net investment income (loss)		0.54			0.47			0.75	(c)		0.50			0.49
Portfolio turnover		40			39			60			50			48
Net assets at end of period (000 omitted)		$41,195			$46,453			$42,883			$47,083			$48,813

Supplemental Ratios (%):
Ratio of expenses to average net assets after expense reductions excluding short sale expenses and interest expense and fees (f)		1.08			1.09			1.06	(c)		1.09			1.09

(c)	Amount reflects aone-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher.

(d)	Per share data is based on average shares outstanding.

(f)	Ratios do not reflect reductions from fees paid indirectly, if applicable.

(k)	The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown.

(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. Excluding the effect of the proceeds received from anon-recurring litigation settlement against Household International, Inc., the total return for the year ended December 31, 2017 would have been lower by approximately 0.78%.

(x)	The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes.

See Notes to Financial Statements

MFS Core Equity Portfolio

NOTES TO FINANCIAL STATEMENTS

(1)

Business and Organization

MFS Core Equity Portfolio (the fund) is a diversified series of MFS Variable Insurance Trust II (the trust). The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as anopen-end management investment company. The shareholders of each series of the trust are separate accounts of insurance companies, which offer variable annuity and/or life insurance products, and qualified retirement and pension plans.

(2)

Significant Accounting Policies

Investment Valuations– Equity securities, including restricted equity securities and equity securities sold short, are generally valued at the last sale or official closing price on their primary market or exchange as provided by a third-party pricing service. Equity securities, for which there were no sales reported that day, are generally valued at the last quoted daily bid quotation on their primary market or exchange as provided by a third-party pricing service. Equity securities sold short, for which there were no sales reported for that day, are generally valued at the last quoted daily ask quotation on their primary market or exchange as provided by a third-party pricing service. Short-term instruments with a maturity at issuance of 60 days or less may be valued at amortized cost, which approximates market value. Exchange-traded options are generally valued at the last sale or official closing price on their primary exchange as provided by a third-party pricing service. Exchange-traded options for which there were no sales reported that day are generally valued at the last daily bid quotation on their primary exchange as provided by a third-party pricing service. Options not traded on an exchange are generally valued at a broker/dealer bid quotation. Foreign currency options are generally valued at valuations provided by a third-party pricing service.Open-end investment companies are generally valued at net asset value per share. 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. In determining values, third-party pricing services can utilize both transaction data and market information such as 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.

MFS Core Equity Portfolio

Notes to Financial Statements – continued

The Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of the 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 the 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 effect 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 the 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 the fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the fund determines its net asset value per share.


Financial Instruments	Level 1			Level 2		Level 3		Total
Equity Securities:
United States		$180,655,752			$195,229		$—		$180,850,981
Canada		2,929,709			—		—		2,929,709
Netherlands		270,367			—		—		270,367
Cayman Islands		—			—		18,858		18,858
Mutual Funds		2,863,971			—		—		2,863,971
Total		$186,719,799			$195,229		$18,858		$186,933,886
Short Sales		$(757,151	)		$—		$—		$(757,151	)

For further information regarding security characteristics, see the Portfolio of Investments.

The following is a reconciliation of level 3 assets for which significant unobservable inputs were used to determine fair value. The table presents the activity of level 3 securities held at the beginning and the end of the period.



	Equity Securities
Balance as of 12/31/17		$17,706
Change in unrealized appreciation or depreciation		1,152
Balance as of 12/31/18		$18,858

The net change in unrealized appreciation or depreciation from investments held as level 3 at December 31, 2018 is $1,152. At December 31, 2018, the fund held one level 3 security.

Foreign Currency Translation– Purchases and sales of foreign investments, income, and expenses are converted into U.S. dollars based upon currency exchange rates prevailing on the respective dates of such transactions or on the reporting date for foreign denominated receivables and payables. Gains and losses attributable to foreign currency exchange rates on sales of securities are recorded for financial statement purposes as net realized gains and losses on investments. Gains and losses attributable to foreign exchange rate movements on receivables, payables, income and expenses are recorded for financial statement purposes as foreign currency transaction gains and losses. That portion of both realized and unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed.

MFS Core Equity Portfolio

Notes to Financial Statements – continued

Derivatives– The fund uses derivatives primarily to increase or decrease exposure to a particular market or segment of the market, or security, to increase or decrease interest rate or currency exposure, or as alternatives to direct investments. Derivatives are used for hedging ornon-hedging purposes. While hedging can reduce or eliminate losses, it can also reduce or eliminate gains. When the fund uses derivatives as an investment to increase market exposure, or for hedging purposes, gains and losses from derivative instruments may be substantially greater than the derivative’s original cost.

The derivative instruments used by the fund during the period were purchased options. Depending on the type of derivative, the fund may exit a derivative position by entering into an offsetting transaction with a counterparty or exchange, negotiating an agreement with the derivative counterparty, or novating the position to a third party. At December 31, 2018, the fund did not have any outstanding derivative instruments.

The following table presents, by major type of derivative contract, the realized gain (loss) on derivatives held by the fund for the year ended December 31, 2018 as reported in the Statement of Operations:


Risk	Unaffiliated Issuers (Purchased Options)
Equity		$(89,406	)

The following table presents, by major type of derivative contract, the change in unrealized appreciation or depreciation on derivatives held by the fund for the year ended December 31, 2018 as reported in the Statement of Operations:


Risk	Unaffiliated Issuers (Purchased Options)
Equity		$88,673

Derivative counterparty credit risk is managed through formal evaluation of the creditworthiness of all potential counterparties. On certain, but not all, uncleared derivatives, the fund attempts to reduce its exposure to counterparty credit risk whenever possible by entering into an ISDA Master Agreement on a bilateral basis. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a specified deterioration in the credit quality of the other party. Upon an event of default or a termination of the ISDA Master Agreement, thenon-defaulting party has the right to close out all transactions traded under such agreement and to net amounts owed under each agreement to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the fund’s credit risk to such counterparty equal to any amounts payable by the fund under the applicable transactions, if any.

Collateral and margin requirements differ by type of derivative. For cleared derivatives (e.g., futures contracts, cleared swaps, and exchange-traded options), margin requirements are set by the clearing broker and the clearing house and collateral, in the form of cash or securities, is posted by the fund directly with the clearing broker. Collateral terms are counterparty agreement specific for uncleared derivatives (e.g., forward foreign currency exchange contracts, uncleared swap agreements, and uncleared options) and collateral, in the form of cash and securities, is held in segregated accounts with the fund’s custodian in connection with these agreements. For derivatives traded under an ISDA Master Agreement, which contains a collateral support annex, the collateral requirements are netted across all transactions traded under such counterparty-specific agreement and an amount is posted from one party to the other to collateralize such obligations. Cash that has been segregated or delivered to cover the fund’s collateral or margin obligations under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities as restricted cash for uncleared derivatives and/or deposits with brokers for cleared derivatives. Securities pledged as collateral or margin for the same purpose, if any, are noted in the Portfolio of Investments. The fund may be required to make payments of interest on uncovered collateral or margin obligations with the broker. Any such payments are included in “Miscellaneous” expense in the Statement of Operations.

Purchased Options– The fund purchased call options for a premium. Purchased call options entitle the holder to buy a specified number of shares or units of a particular security, currency or index at a specified price at a specified date or within a specified period of time. Purchasing call options may hedge against an anticipated increase in the dollar cost of securities or currency to be acquired or increase the fund’s exposure to an underlying instrument.

The premium paid is initially recorded as an investment in the Statement of Assets and Liabilities. That investment is subsequentlymarked-to-market daily with the difference between the premium paid and the market value of the purchased option being recorded as unrealized appreciation or depreciation. Premiums paid for purchased call options which have expired are treated as realized losses on investments in the Statement of Operations. Upon the exercise or closing of a purchased call option, the premium paid is added to the cost of the security or financial instrument purchased.

MFS Core Equity Portfolio

Notes to Financial Statements – continued

mitigated in cases where there is an ISDA Master Agreement between the fund and the counterparty providing for netting as described above and, where applicable, by the posting of collateral by the counterparty to the fund to cover the fund’s exposure to the counterparty under such ISDA Master Agreement.

Short Sales– The fund entered into short sales whereby it sells a security it does not own in anticipation of a decline in the value of that security. The fund will realize a gain if the security price decreases and a loss if the security price increases between the date of the short sale and the date on which the fund replaces the borrowed security. Losses from short sales can exceed the proceeds of the security sold; and they can also exceed the potential loss from an ordinary buy and sell transaction. The amount of any premium, dividends, or interest the fund may be required to pay in connection with a short sale will be recognized as a fund expense. During the year ended December 31, 2018, this expense amounted to $49,601. The fund segregates cash or marketable securities in an amount that, when combined with the amount of proceeds from the short sale deposited with the broker, at least equals the current market value of the security sold short.

Security Loans– Under its Securities Lending Agency Agreement with the fund, State Street Bank and Trust Company, as lending agent, loans the securities of the fund to certain qualified institutions (the “Borrowers”) approved by the fund. Security loans can be terminated at the discretion of either the lending agent or the fund and the related securities must be returned within the earlier of the standard trade settlement period for such securities or within three business days. The loans are collateralized by cash and/or U.S. Treasury and federal agency obligations in an amount typically at least equal to the market value of the securities loaned. On loans collateralized by cash, the cash collateral is invested in a money market fund. The market value of the loaned securities is determined at the close of business of the fund and any additional required collateral is delivered to the fund on the next business day. The lending agent provides the fund with indemnification against Borrower default. In the event of Borrower default, the lending agent will, for the benefit of the fund, either purchase securities identical to those loaned or, when such purchase is commercially impracticable, pay the fund the market value of the loaned securities. In return, the lending agent assumes the fund’s rights to the related collateral. If the collateral value is less than the cost to purchase identical securities, the lending agent is responsible for the shortfall, but only to the extent that such shortfall is not due to a decline in collateral value resulting from collateral reinvestment for which the fund bears the risk of loss. At period end, the fund had investment securities on loan, all of which were classified as equity securities in the fund’s Portfolio of Investments, with a fair value of $23,074. The fair value of the fund’s investment securities on loan and a related liability of $102 for cash collateral received on securities loaned are both presented gross in the Statement of Assets and Liabilities. Additionally, these loans were collateralized by U.S. Treasury Obligations of $24,192 held by the lending agent. The collateral on securities loaned exceeded the value of securities on loan at period end. The liability for cash collateral for securities loaned is carried at fair value, which is categorized as level 2 within the fair value hierarchy. A portion of the income generated upon investment of the collateral is remitted to the Borrowers, and the remainder is allocated between the fund and the lending agent. On loans collateralized by U.S. Treasury and/or federal agency obligations, a fee is received from the Borrower, and is allocated between the fund and the lending agent. Income from securities lending is separately reported in the Statement of Operations. The dividend and interest income earned on the securities loaned is accounted for in the same manner as other dividend and interest income.

MFS Core Equity Portfolio

Notes to Financial Statements – continued

Book/tax differences primarily relate to wash sale loss deferrals.

The tax character of distributions declared to shareholders for the last two fiscal years is as follows:


	Year ended 12/31/18		Year ended 12/31/17
Ordinary income (including any short-term capital gains)		$6,671,036		$1,852,020
Long-term capital gains		16,826,017		12,091,064
Total distributions		$23,497,053		$13,943,084

The federal tax cost and the tax basis components of distributable earnings were as follows:


As of 12/31/18

Cost of investments	$161,797,068
Gross appreciation	36,920,867
Gross depreciation	(12,541,200	)
Net unrealized appreciation (depreciation)	$24,379,667

Undistributed ordinary income	3,005,783
Undistributed long-term capital gain	25,156,626
Other temporary differences	95,433


	From net investment income				From net realized gain

	Year ended 12/31/18		Year ended 12/31/17		Year ended 12/31/18		Year ended 12/31/17
Initial Class		$1,128,747		$1,539,604		$17,409,241		$9,485,664
Service Class		196,254		312,416		4,762,811		2,605,400
Total		$1,325,001		$1,852,020		$22,172,052		$12,091,064

(3)

Transactions with Affiliates


Up to $1 billion			0.75%
In excess of $1 bllion and up to $2.5 billion			0.65%
In excess of $2.5 billion			0.60%

MFS has agreed in writing to reduce its management fee by a specified amount if certain MFS mutual fund assets exceed thresholds agreed to by MFS and the fund’s Board of Trustees. For the year ended December 31, 2018, this management fee reduction amounted to $20,236, which is included in the reduction of total expenses in the Statement of Operations. The management fee incurred for the year ended December 31, 2018 was equivalent to an annual effective rate of 0.74% of the fund’s average daily net assets.

MFS Core Equity Portfolio

Notes to Financial Statements – continued

Class shares. This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until April 30, 2020. For the year ended December 31, 2018, the fund’s actual operating expenses did not exceed the limit and therefore, the investment adviser did not pay any portion of the fund’s expenses related to this agreement.

Shareholder Servicing Agent– MFS Service Center, Inc. (MFSC), a wholly-owned subsidiary of MFS, receives a fee from the fund for its services as shareholder servicing agent. For the year ended December 31, 2018, the fee was $14,450, which equated to 0.0068% annually of the fund’s average daily net assets. MFSC also receives payment from the fund forout-of-pocket expenses paid by MFSC on behalf of the fund. For the year ended December 31, 2018, these costs amounted to $561.

Other– This fund and certain other funds managed by MFS (the funds) have entered into a service agreement (the ISO Agreement) which provides for payment of fees solely by the funds to Tarantino LLC in return for the provision of services of an Independent Senior Officer (ISO) for the funds. Frank L. Tarantino serves as the ISO and is an officer of the funds and the sole member of Tarantino LLC. The funds can terminate the ISO Agreement with Tarantino LLC at any time under the terms of the ISO Agreement. For the year ended December 31, 2018, the fee paid by the fund under this agreement was $361 and is included in “Miscellaneous” expense in the Statement of Operations. MFS has agreed to bear all expenses associated with office space, other administrative support, and supplies provided to the ISO.

The fund is permitted to engage in purchase and sale transactions with funds and accounts for which MFS serves as investment adviser orsub-adviser (“cross-trades”) pursuant to a policy adopted by the Board of Trustees. This policy has been designed to ensure that cross-trades conducted by the fund comply with Rule17a-7 under the Investment Company Act of 1940. During the year ended December 31, 2018, the fund engaged in sale transactions pursuant to this policy, which amounted to $523,064, respectively. The sales transactions resulted in net realized gains (losses) of $338,551.

Effective on or about January 3, 2018, the adviser has voluntarily undertaken to reimburse the fund from its own resources on a quarterly basis for the cost of investment research embedded in the cost of the fund’s securities trades. This agreement may be rescinded at any time. For the period on or about January 3, 2018 to December 31, 2018, this reimbursement amounted to $11,875, which is included in “Other” income in the Statement of Operations.

(4)

Portfolio Securities

For the year ended December 31, 2018, purchases and sales of investments, other than purchased option transactions, short sales, and short-term obligations, aggregated $85,297,408 and $109,623,671, respectively.

MFS Core Equity Portfolio

Notes to Financial Statements – continued

(5)

Shares of Beneficial Interest

The 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:


	Year ended 12/31/18						Year ended 12/31/17

	Shares			Amount			Shares			Amount
Shares sold
Initial Class		194,535			$4,980,452			186,500			$4,399,901
Service Class		265,699			6,551,910			170,109			3,967,561
		460,234			$11,532,362			356,609			$8,367,462

Shares issued to shareholders in reinvestment of distributions
Initial Class		743,602			$18,537,988			481,874			$11,025,268
Service Class		200,935			4,959,065			128,708			2,917,816
		944,537			$23,497,053			610,582			$13,943,084

Shares reacquired
Initial Class		(1,034,631	)		$(26,088,919	)		(1,084,690	)		$(25,642,366	)
Service Class		(406,173	)		(10,228,826	)		(435,248	)		(10,266,162	)
		(1,440,804	)		$(36,317,745	)		(1,519,938	)		$(35,908,528	)

Net change
Initial Class		(96,494	)		$(2,570,479	)		(416,316	)		$(10,217,197	)
Service Class		60,461			1,282,149			(136,431	)		(3,380,785	)
		(36,033	)		$(1,288,330	)		(552,747	)		$(13,597,982	)

(6)

Line of Credit

The fund and certain other funds managed by MFS participate in a $1.25 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 Overnight Bank Funding rate or daily one month LIBOR plus an agreed upon spread. A commitment fee, based on the average daily, unused portion of the committed line of credit, is allocated among the participating funds. In addition, the 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, at a rate equal to the Overnight Bank Funding rate plus an agreed upon spread. For the year ended December 31, 2018, the fund’s commitment fee and interest expense were $1,246 and $0, respectively, and are included in “Miscellaneous” expense in the Statement of Operations.

(7)

Investments in Affiliated Issuers


Affiliated Issuers		Beginning Shares/Par Amount	Acquisitions Shares/Par Amount		Dispositions Shares/Par Amount			Ending Shares/Par Amount

MFS Institutional Money Market Portfolio		1,613,843		41,567,552		(40,317,239	)		2,864,156

Affiliated Issuers	Realized Gain (Loss)	Change in Unrealized Appreciation/ Depreciation	Capital Gain Distributions		Dividend Income			Ending Value

MFS Institutional Money Market Portfolio	$(94)	$—		$—		$32,863			$2,863,869

MFS Core Equity Portfolio

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees of MFS Variable Insurance Trust II and the Shareholders of

MFS Core Equity Portfolio:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities of MFS Core Equity Portfolio (the “Fund”), including the portfolio of investments, as of December 31, 2018, the related statement 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of December 31, 2018, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

DELOITTE & TOUCHE LLP

Boston, Massachusetts

February 15, 2019

We have served as the auditor of one or more of the MFS investment companies since 1924.

MFS Core Equity Portfolio

TRUSTEES AND OFFICERS – IDENTIFICATION AND BACKGROUND


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds overseen by the Trustee	Principal Occupations During the Past Five Years	Other Directorships During the Past Five Years (j)
INTERESTED TRUSTEES
Robert J. Manning (k) (age 55)	Trustee	February 2004	135	Massachusetts Financial Services Company, Executive Chairman (since January 2017); Director; Chairman of the Board; Chief Executive Officer (until 2015);Co-Chief Executive Officer(2015-2016)	N/A

Robin A. Stelmach (k) (age 57)	Trustee	January 2014	135	Massachusetts Financial Services Company, Vice Chair (since January 2017); Chief Operating Officer and Executive Vice President (until January 2017)	N/A

INDEPENDENT TRUSTEES
John P. Kavanaugh (age 64)	Trustee and Chair of Trustees	January 2009	135	Private investor	N/A

Steven E. Buller (age 67)	Trustee	February 2014	135	Financial Accounting Standards Advisory Council, Chairman(2014-2015); Public Company Accounting Oversight Board, Standing Advisory Group, Member (until 2014); BlackRock, Inc. (investment management), Managing Director (until 2014), BlackRock Finco UK (investment management), Director (until 2014)	N/A

John A. Caroselli (age 64)	Trustee	March 2017	135	JC Global Advisors, LLC (management consulting), President (since 2015); First Capital Corporation (commercial finance), Executive Vice President (until 2015)	N/A

Maureen R. Goldfarb (age 63)	Trustee	January 2009	135	Private investor	N/A

Michael Hegarty (age 74)	Trustee	December 2004	135	Private investor	Rouse Properties Inc., Director (until 2016); Capmark Financial Group Inc., Director (until 2015)

Peter D. Jones (age 63)	Trustee	January 2019	135	Franklin Templeton Distributors, Inc. (investment management), President (until 2015); Franklin Templeton Institutional, LLC (investment management), Chairman (until 2015)	N/A

James W. Kilman, Jr. (age 57)	Trustee	January 2019	135	KielStrand Capital LLC (family office and merchant bank), Chief Executive Officer (since 2016); Morgan Stanley & Co. (financial services), Vice Chairman of Investment Banking,Co-Head of Diversified Financials Coverage – Financial Institutions Investment Banking Group (until 2016)	alpha-En Corporation, Director (since 2016)

MFS Core Equity Portfolio

Trustees and Officers – continued


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds overseen by the Trustee	Principal Occupations During the Past Five Years	Other Directorships During the Past Five Years (j)
Clarence Otis, Jr. (age 62)	Trustee	March 2017	135	Darden Restaurants, Inc., Chief Executive Officer (until 2014)	VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director; Federal Reserve Bank of Atlanta, Director (until 2015)

Maryanne L. Roepke (age 62)	Trustee	May 2014	135	American Century Investments (investment management), Senior Vice President and Chief Compliance Officer (until 2014)	N/A

Laurie J. Thomsen (age 61)	Trustee	March 2005	135	Private investor	The Travelers Companies, Director; Dycom Industries, Inc., Director (since 2015)


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds for which the Person is an Officer	Principal Occupations During the Past Five Years
OFFICERS
Christopher R. Bohane (k) (age 45)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Vice President and Assistant General Counsel

Kino Clark (k) (age 50)	Assistant Treasurer	January 2012	135	Massachusetts Financial Services Company, Vice President

John W. Clark, Jr. (k) (age 51)	Assistant Treasurer	April 2017	135	Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head – Treasurer’s Office (until February 2017)

Thomas H. Connors (k) (age 59)	Assistant Secretary and Assistant Clerk	September 2012	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Ethan D. Corey (k) (age 55)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel

David L. DiLorenzo (k) (age 50)	President	July 2005	135	Massachusetts Financial Services Company, Senior Vice President

Heidi W. Hardin (k) (age 51)	Secretary and Clerk	April 2017	135	Massachusetts Financial Services Company, Executive Vice President and General Counsel (since March 2017); Harris Associates (investment management), General Counsel (from September 2015 to January 2017); Janus Capital Management LLC (investment management), Senior Vice President and General Counsel (until September 2015)

Brian E. Langenfeld (k) (age 45)	Assistant Secretary and Assistant Clerk	June 2006	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Amanda S. Mooradian (k) (age 39)	Assistant Secretary and Assistant Clerk	September 2018	135	Massachusetts Financial Services Company, Assistant Vice President and Counsel

Susan A. Pereira (k) (age 48)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Kasey L. Phillips (k) (age 48)	Assistant Treasurer	September 2012	135	Massachusetts Financial Services Company, Vice President

Matthew A. Stowe (k) (age 44)	Assistant Secretary and Assistant Clerk	October 2014	135	Massachusetts Financial Services Company, Vice President and Assistant General Counsel

MFS Core Equity Portfolio

Trustees and Officers – continued


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds for which the Person is an Officer	Principal Occupations During the Past Five Years
Frank L. Tarantino (age 74)	Independent Senior Officer	June 2004	135	Tarantino LLC (provider of compliance services), Principal

Richard S. Weitzel (k) (age 48)	Assistant Secretary and Assistant Clerk	October 2007	135	Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel

Martin J. Wolin (k) (age 51)	Chief Compliance Officer	July 2015	135	Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer (since July 2015); Mercer (financial service provider), Chief Risk and Compliance Officer, North America and Latin America (until June 2015)

James O. Yost (k) (age 58)	Treasurer	September 1990	135	Massachusetts Financial Services Company, Senior Vice President

(h)

(j)	Directorships or trusteeships of companies required to report to the Securities and Exchange Commission (i.e., “public companies”).

(k)

Messrs. Buller, Hegarty, Kilman and Otis and Ms. Roepke are members of the Trust’s Audit Committee.

Each of the Interested Trustees and certain Officers hold comparable officer positions with certain affiliates of MFS.

The Statement of Additional Information for a Fund includes further information about the Trustees and is available without charge upon request by calling1-800-225-2606.


Investment Adviser Massachusetts Financial Services Company 111 Huntington Avenue Boston, MA 02199-7618		Custodian State Street Bank and Trust Company 1 Lincoln Street Boston, MA 02111-2900
Distributor MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618		Independent Registered Public Accounting Firm Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116
Portfolio Manager(s) Joseph MacDougall

MFS Core Equity Portfolio

BOARD REVIEW OF INVESTMENT ADVISORY AGREEMENT

Based on information provided by Broadridge and MFS, the Trustees reviewed the Fund’s total return investment performance as well as the Broadridge performance universe over various time periods. The Trustees placed particular emphasis on the total return performance of the Fund’s Initial Class shares in comparison to the performance of funds in its Broadridge performance universe over the three-year period ended December 31, 2017, which the Trustees believed was a long enough period to reflect differing market conditions. The total return performance of the Fund’s Initial Class shares was in the 1st quintile relative to the other funds in the universe for this three-year period (the 1st quintile being the best performers and the 5th quintile being the worst performers). The total return performance of the Fund’s Initial Class shares was in the 1st quintile for each of theone- and five-year periods ended December 31, 2017 relative to the Broadridge performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.

MFS Core Equity Portfolio

Board Review of Investment Advisory Agreement – continued

In assessing the reasonableness of the Fund’s advisory fee, the Trustees considered, among other information, the Fund’s advisory fee and the total expense ratio of the Fund’s Initial Class shares as a percentage of average daily net assets and the advisory fee and total expense ratios of peer groups of funds based on information provided by Broadridge. The Trustees considered that MFS currently observes an expense limitation for the Fund, which may not be changed without the Trustees’ approval. The Trustees also considered that, according to the data provided by Broadridge (which takes into account any fee reductions or expense limitations that were in effect during the Fund’s last fiscal year), the Fund’s effective advisory fee rate was approximately at the Broadridge expense group median and the Fund’s total expense ratio was higher than the Broadridge expense group median.

The Trustees also considered whether the Fund may benefit from any economies of scale in the management of the Fund in the event of growth in assets of the Fund and/or growth in assets of the MFS Funds as a whole. They noted that the Fund’s advisory fee rate schedule is subject to contractual breakpoints that reduce the Fund’s advisory fee rate on average daily net assets over $1 billion and $2.5 billion. The Trustees also noted that MFS has agreed in writing to waive a portion of the management fees of certain MFS Funds, including the Fund, if the total combined assets of certain funds within the MFS Funds’ complex increase above agreed upon thresholds (the “group fee waiver”), enabling the Fund’s shareholders to share in the benefits from any economies of scale at the complex level. The group fee waiver is reviewed and renewed annually between the Board and MFS. The Trustees concluded that the breakpoints and the group fee waiver were sufficient to allow the Fund to benefit from economies of scale as its assets and overall complex assets grow.

MFS Core Equity Portfolio

PROXY VOTING POLICIES AND INFORMATION

QUARTERLY PORTFOLIO DISCLOSURE

The fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website athttp://www.sec.gov. A shareholder can obtain the portfolio holdings report for the first and third quarters of the fund’s fiscal year atmfs.com/vit2 by choosing the fund’s name and then selecting the “Resources” tab and clicking on “Prospectus and Reports”.

FURTHER INFORMATION

INFORMATION ABOUT FUND CONTRACTS AND LEGAL CLAIMS

FEDERAL TAX INFORMATION (unaudited)

The following information is provided pursuant to provisions of the Internal Revenue Code.

The fund designates $18,509,000 as capital gain dividends paid during the fiscal year.

For corporate shareholders, 36.66% of the ordinary income dividends paid during the fiscal year qualify for the corporate dividends received deduction.

rev. 3/16



FACTS		WHAT DOES MFS DO WITH YOUR PERSONAL INFORMATION?


Why?		Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.

What?

The types of personal information we collect and share depend on the product or service you have with us. This information can include:

• Social Security number and account balances

• Account transactions and transaction history

• Checking account information and wire transfer instructions

When you areno longer our customer, we continue to share your information as described in this notice.


How?		All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons MFS chooses to share; and whether you can limit this sharing.


Reasons we can share your personal information	Does MFS share?	Can you limit this sharing?
For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes – to offer our products and services to you	No	We don’t share
For joint marketing with other financial companies	No	We don’t share
For our affiliates’ everyday business purposes – information about your transactions and experiences	No	We don’t share
For our affiliates’ everyday business purposes – information about your creditworthiness	No	We don’t share
For nonaffiliates to market to you	No	We don’t share



Questions?		Call800-225-2606 or go tomfs.com.


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Who we are
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Annual Report

December 31, 2018

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MFS^® Emerging Markets Equity Portfolio

LOGO

MFS^® Variable Insurance Trust II

FCE-ANN

MFS® Emerging Markets Equity Portfolio

CONTENTS

The report is prepared for the general information of contract owners. 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 OR CREDIT UNION GUARANTEE• NOT A DEPOSIT• NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY OR NCUA/NCUSIF

MFS Emerging Markets Equity Portfolio

LETTER FROM THE EXECUTIVE CHAIRMAN

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Dear Contract Owners:

Respectfully,

LOGO

Robert J. Manning

Executive Chairman

MFS Investment Management

February 15, 2019

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

MFS Emerging Markets Equity Portfolio

PORTFOLIO COMPOSITION

Portfolio structure

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Top ten holdings
Taiwan Semiconductor Manufacturing Co. Ltd.			5.4%
Samsung Electronics Co. Ltd.			4.3%
Tencent Holdings Ltd.			3.9%
Housing Development Finance Corp. Ltd.			3.4%
Alibaba Group Holding Ltd., ADR			3.3%
Baidu, Inc., ADR			2.8%
Banco Bradesco S.A., ADR			2.6%
AIA Group Ltd.			2.4%
LUKOIL PJSC, ADR			2.4%
Yum China Holdings, Inc.			2.2%

GICS equity sectors
Financials			26.8%
Information Technology			15.8%
Consumer Discretionary			14.8%
Consumer Staples			11.8%
Communication Services			11.3%
Industrials			7.2%
Materials			4.9%
Energy			3.8%
Real Estate			1.7%
Utilities			0.8%
Health Care			0.5%


Issuer country weightings (x)
China			22.4%
South Korea			11.0%
Brazil			9.6%
India			9.0%
Hong Kong			7.5%
Taiwan			7.5%
South Africa			5.2%
Indonesia			4.8%
Mexico			4.3%
Other Countries			18.7%

Currency exposure weightings (y)
Hong Kong Dollar			18.0%
South Korean Won			11.0%
Brazilian Real			9.6%
Chinese Renminbi			8.7%
United States Dollar			8.3%
Indian Rupee			7.8%
Taiwan Dollar			7.5%
South African Rand			5.2%
Indonesian Rupiah			4.8%
Other Currencies			19.1%

(x)	Represents the portfolio’s exposure to issuer countries as a percentage of the portfolio’s net assets. For purposes of this presentation, United States (included in Other Countries) includes Cash & Cash Equivalents.

(y)	Represents the portfolio’s exposure to a particular currency as a percentage of a portfolio’s net assets. For purposes of this presentation, United States Dollar includes Cash & Cash Equivalents.

The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and S&P Global Market Intelligence Inc. (“S&P Global Market Intelligence”). GICS is a service mark of MSCI and S&P Global Market Intelligence and has been licensed for use by MFS.

Percentages are based on net assets as of December 31, 2018.

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

MFS Emerging Markets Equity Portfolio

MANAGEMENT REVIEW

Summary of Results

For the twelve months ended December 31, 2018, Initial Class shares of the MFS Emerging Markets Equity Portfolio (“fund”) provided a total return of –13.94%, while Service Class shares of the fund provided a total return of –14.13%. These compare with a return of –14.58% over the same period for the fund’s benchmark, the MSCI Emerging Markets Index (net div).

Market Environment

Contributors to Performance

Security selection in thefinancials,information technology andmaterials sectors was a primary factor that contributed to performance relative to the MSCI Emerging Markets Index. Within thefinancials sector, the fund’s overweight positions in financial services company Housing Development Finance Corp. (India), banking firm Banco Bradesco (Brazil) and financial management firm E.Sun Financial Holding (Taiwan), as well as holding shares of insurance company AIA Group (b) (Hong Kong), boosted relative returns. The stock price of Housing Development Finance Corp. rose as strong loan growth and lower operating expenses translated into strong earnings results for the firm. Within theinformation technology sector, holding shares of enterprise software solutions provider Linx (b) (Brazil) aided relative results. Shares of Linx climbed, towards the latter part of the reporting period, after the company announced it will be going into the fintech payments business with the launch of its new division Linx Pay. Within thematerials sector, an overweight position in pulp and paper producer Fibria Celulose (h) (Brazil) helped relative performance.

Stocks in other sectors that further supported relative returns included overweight positions in integrated oil company LUKOIL PJSC (Russia) and snack manufacturer Orion (South Korea), as well as the timing of the fund’s ownership in shares of human resource services provider 51job (China). Holding shares of international school operator China Maple Leaf Educational Systems (b)(h) (Hong Kong) also aided relative results.

During the reporting period, the fund’s relative currency exposure, resulting primarily from differences between the fund’s and the benchmark’s exposures to holdings of securities denominated in foreign currencies, was another contributor to relative performance. All of MFS’ investment decisions are driven by the fundamentals of each individual opportunity and as such, it is common for our funds to have different currency exposures than the benchmark.

Detractors from Performance

The combination of an underweight position and stock selection in both theenergy andutilities sectors weighed on relative performance during the reporting period. Within theenergy sector, the timing of the fund’s ownership in shares of oil and gas exploration and production company Petroleo Brasileiro (Brazil) and an overweight position in fuel and chemicals distributor Ultrapar Participacoes (h) (Brazil) hindered relative returns. Early in the period, shares of Petroleo Brasileiro came under pressure due to a trucker strike in Brazil, which ultimately led to a heavy cut in the company’s diesel prices and the resignation of its CEO. Later in the

MFS Emerging Markets Equity Portfolio

Management Review – continued

period, the stock advanced after the company announced it would sell its offshore Gulf of Mexico assets in a deal valued at $1.1 billion. Although an underweight position and stock selection in theutilities sector hurt relative results, there were no individual stocks within this sector that were among the fund’s top relative detractors during the reporting period.

Security selection within thecommunications services sector also weakened relative returns, led by the fund’s overweight position in internet search provider Baidu (China). Shares of Baidu lagged the benchmark over the reporting period as concerns over a trade war between the United States and China and new regulations on gaming ande-finance, combined with disappointing guidance from the company’s management, appeared to have weighed on investor sentiment.

Elsewhere, overweight positions in education services provider Kroton Educacional (Brazil), travel service provider Ctrip.com International (China), casino and gaming company Genting Berhad (Malaysia), water purifiers and air filters maker Coway (h) (South Korea), food producer BRF (Brazil) and Chinese instant food manufacturer Tingyi (Cayman Islands) Holding Corporation further held back relative returns. Lastly, holding shares of electronic products manufacturer and supplier VTech Holdings (b) (Hong Kong) also detracted from relative results.

Respectfully,

Portfolio Manager(s)

Jose Luis Garcia, Robert Lau, and Harry Purcell

(b)	Security is not a benchmark constituent.

(h)	Security was not held in the portfolio at period end.

MFS Emerging Markets Equity Portfolio

PERFORMANCE SUMMARY THROUGH 12/31/18

Growth of a Hypothetical $10,000 Investment

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Total Returns through 12/31/18

Average annual total returns


	Share Class	Class Inception Date	1-yr	5-yr	10-yr
	Initial Class	6/05/96	(13.94)%	1.08%	7.30%
	Service Class	8/24/01	(14.13)%	0.83%	7.03%

Comparative benchmark(s)
	MSCI Emerging Markets Index (net div) (f)		(14.58)%	1.65%	8.02%

(f)	Source: FactSet Research Systems Inc.

Benchmark Definition(s)

MSCI Emerging Markets Index (net div) – a market capitalization-weighted index that is designed to measure equity market performance in the global emerging markets.

It is not possible to invest directly in an index.

Notes to Performance Summary

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

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

MFS Emerging Markets Equity Portfolio

EXPENSE TABLE

Fund Expenses Borne by the Contract Holders during the Period,

July 1, 2018 through December 31, 2018

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period July 1, 2018 through December 31, 2018.

Actual Expenses

Hypothetical Example for Comparison Purposes


Share Class		Annualized Expense Ratio		Beginning Account Value 7/01/18		Ending Account Value 12/31/18		Expenses Paid During Period (p) 7/01/18-12/31/18
Initial Class	Actual		1.34%		$1,000.00		$888.51		$6.38
Initial Class	Hypothetical (h)		1.34%		$1,000.00		$1,018.45		$6.82
Service Class	Actual		1.59%		$1,000.00		$887.51		$7.56
Service Class	Hypothetical (h)		1.59%		$1,000.00		$1,017.19		$8.08

(h)	5% class return per year before expenses.

(p)	“Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect theone-half year period).

Notes to Expense 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 ratios, the actual expenses paid during the period, and the hypothetical expenses paid during the period would have been approximately 1.33%, $6.33, and $6.77 for Initial Class and 1.58%, $7.52, and $8.03 for Service Class, respectively. 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.

MFS Emerging Markets Equity Portfolio

PORTFOLIO OF INVESTMENTS – 12/31/18

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



Issuer	Shares/Par		Value ($)
COMMON STOCKS – 99.4%
Airlines – 0.9%
Grupo Aeroportuario del Sureste S.A. de C.V.,
ADR (l)		2,819	$	424,541

Alcoholic Beverages – 3.3%
AmBev S.A., ADR		153,850	$	603,092
China Resources Beer Holdings Co. Ltd.		250,000		873,188

			$	1,476,280

Apparel Manufacturers – 0.6%
Stella International Holdings		215,500	$	255,666

Automotive – 2.1%
Mahindra & Mahindra Ltd.		39,171	$	451,015
PT Astra International Tbk		879,200		506,114

			$	957,129

Brokerage & Asset Managers – 0.4%
B3 Brasil Bolsa Balcao S.A.		26,200	$	181,235

Business Services – 1.6%
Cognizant Technology Solutions Corp., “A”		10,199	$	647,433
Motus Holdings Ltd. (a)		10,759		65,814
RP-SG Business Process Services Ltd. (a)		5,444		3,780

			$	717,027

Cable TV – 1.7%
Naspers Ltd.		3,755	$	754,855

Computer Software – Systems – 2.6%
Globant S.A. (a)		1,321	$	74,399
Linx S.A.		75,100		631,687
Luxoft Holding, Inc. (a)		14,572		443,280

			$	1,149,366

Construction – 2.6%
PT Indocement Tunggal Prakarsa Tbk		415,500	$	533,100
Techtronic Industries Co. Ltd.		117,500		624,226

			$	1,157,326

Consumer Products – 0.6%
Dabur India Ltd.		41,852	$	258,162

Consumer Services – 3.8%
51job, Inc., ADR (a)		8,760	$	546,974
Ctrip.com International Ltd., ADR (a)		21,115		571,372
Kroton Educacional S.A.		27,900		63,852
MakeMyTrip Ltd. (a)		22,043		536,306

			$	1,718,504

Containers – 0.6%
Lock & Lock Co. Ltd. (a)		15,500	$	286,563

Electrical Equipment – 2.0%
Bharat Heavy Electricals Ltd.		359,985	$	376,923
LS Industrial Systems Co. Ltd. (a)		12,258		536,835

			$	913,758



Issuer	Shares/Par		Value ($)
COMMON STOCKS – continued
Electronics – 10.7%
Samsung Electronics Co. Ltd.		56,034	$	1,938,814
Silicon Motion Technology Corp., ADR		13,177		454,607
Taiwan Semiconductor Manufacturing Co. Ltd.		329,258		2,415,580

			$	4,809,001

Energy – Integrated – 3.4%
LUKOIL PJSC, ADR		15,068	$	1,077,061
Petroleo Brasileiro S.A., ADR		35,552		462,531

			$	1,539,592

Food & Beverages – 5.3%
AVI Ltd.		81,459	$	575,634
BRF S.A. (a)		32,054		182,648
Fomento Economico Mexicano S.A.B. de C.V., ADR		2,912		250,578
Orion Corp. (a)		6,945		746,908
Tingyi (Cayman Islands) Holding Corp.		468,000		625,155

			$	2,380,923

Food & Drug Stores – 1.0%
Dairy Farm International Holdings Ltd.		51,100	$	462,455

Forest & Paper Products – 0.9%
Suzano Papel e Celulose		39,500	$	388,095

Gaming & Lodging – 1.3%
Genting Berhad		386,000	$	569,776

General Merchandise – 0.9%
S.A.C.I. Falabella		24,108	$	176,802
Walmart de Mexico S.A.B. de C.V.		82,294		209,255

			$	386,057

Insurance – 3.0%
AIA Group Ltd.		131,000	$	1,087,415
Samsung Fire & Marine Insurance Co. Ltd. (a)		979		236,020

			$	1,323,435

Internet – 11.5%
Alibaba Group Holding Ltd., ADR (a)		10,907	$	1,495,022
Baidu, Inc., ADR (a)		8,008		1,270,069
NAVER Corp. (a)		5,920		645,030
Tencent Holdings Ltd.		43,600		1,748,343

			$	5,158,464

Machinery & Tools – 2.0%
Doosan Bobcat, Inc.		19,159	$	539,436
Haitian International Holdings Ltd.		189,000		364,459

			$	903,895

Major Banks – 8.6%
ABSA Group Ltd.		80,796	$	908,734
Banco Bradesco S.A., ADR		118,083		1,167,841
China Construction Bank		1,130,670		932,779
Industrial & Commercial Bank of China, “H”		863,000		616,074

MFS Emerging Markets Equity Portfolio

Portfolio of Investments – continued



Issuer	Shares/Par		Value ($)
COMMON STOCKS – continued
Major Banks – continued
Nova Ljubljanska Banka d.d., GDR (a)(z)		14,565	$	217,109

			$	3,842,537

Metals & Mining – 1.4%
Grupo Mexico S.A.B. de C.V., “B”		70,298	$	144,662
Vale S.A., ADR		35,518		468,482

			$	613,144

Network & Telecom – 1.1%
VTech Holdings Ltd.		56,900	$	470,867

Oil Services – 0.4%
Lamprell PLC (a)		247,900	$	191,164

Other Banks & Diversified Financials – 15.0%
Banco Macro S.A., ADR		3,110	$	137,524
Credicorp Ltd.		1,421		314,993
E.Sun Financial Holding Co. Ltd.		739,714		483,725
Grupo Financiero Inbursa S.A. de C.V.		251,803		362,487
Housing Development Finance Corp. Ltd.		53,996		1,522,352
Kasikornbank Co. Ltd.		105,400		597,245
Komercni Banka A.S.		11,355		428,190
Metropolitan Bank & Trust Co.		535,686		824,642
PT Bank Central Asia Tbk		173,400		313,519
Public Bank Berhad		84,300		505,086
Sberbank of Russia		164,585		440,075
Shriram Transport Finance Co. Ltd.		31,349		556,774
Union National Bank		186,120		237,644

			$	6,724,256

Pharmaceuticals – 0.5%
Genomma Lab Internacional S.A., “B” (a)		394,140	$	234,056

Railroad & Shipping – 0.7%
GMexico Transportes S.A.B. de C.V		245,400	$	320,053

Real Estate – 1.7%
Aldar Properties PJSC		363,861	$	158,495
Hang Lung Properties Ltd.		245,000		466,816
Multiplan Empreendimentos Imobiliarios S.A.		24,521		154,431

			$	779,742

Restaurants – 2.2%
Yum China Holdings, Inc.		29,911	$	1,002,916



Issuer	Shares/Par		Value ($)
COMMON STOCKS – continued
Retailers – 0.1%
RP-SG Retail Ltd. (a)		16,334	$	34,011

Specialty Chemicals – 1.3%
Astra Argo Lestari		280,200	$	230,415
PTT Global Chemical PLC		166,800		365,003

			$	595,418

Specialty Stores – 0.7%
Dufry AG		3,345	$	317,687

Telecommunications – Wireless – 0.3%
Mobile TeleSystems PJSC, ADR		20,085	$	140,595

Telephone Services – 1.2%
Hellenic Telecommunications Organization S.A.		22,844	$	249,172
PT XL Axiata Tbk (a)		2,112,200		290,831

			$	540,003

Tobacco – 0.6%
PT Hanjaya Mandala Sampoerna Tbk		1,052,550	$	271,555

Trucking – 0.1%
Imperial Logistics Ltd		10,759	$	50,851

Utilities – Electric Power – 0.7%
CESC Ltd.		31,733	$	303,785

Total Common Stocks (Identified Cost, $35,713,909)			$	44,604,745


INVESTMENT COMPANIES (h) – 0.8%
Money Market Funds – 0.8%
MFS Institutional Money Market Portfolio, 2.4% (v) (Identified Cost, $364,116)		364,152	$	364,115


COLLATERAL FOR SECURITIES LOANED – 0.1%
State Street Navigator Securities Lending
Government Money Market Portfolio, 2.29% (j) (Identified Cost, $47,722)		47,722	$	47,722

OTHER ASSETS, LESS LIABILITIES – (0.3)%				(156,133	)

NET ASSETS – 100.0%			$	44,860,449

(a)

Non-income producing security.

(h)

(j)

The rate quoted is the annualizedseven-day yield of the fund at period end.

(l)

A portion of this security is on loan. See Note 2 for additional information.

(v)

MFS Emerging Markets Equity Portfolio

Portfolio of Investments – continued

(z)

Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involvetime-consuming negotiations and prompt sale at an acceptable price may be difficult. The fund holds the following restricted securities:


Restricted Securities	Acquisition Date	Cost		Value

Nova Ljubljanska Banka d.d., GDR	11/9/18		$170,128		$217,109

% of Net assets					0.5%

The following abbreviations are used in this report and are defined:

ADR

American Depositary Receipt

GDR

Global Depositary Receipt

PJSC

Public Joint Stock Company

PLC

Public Limited Company

See Notes to Financial Statements

MFS Emerging Markets Equity Portfolio

FINANCIAL STATEMENTS ^| STATEMENT OF ASSETS AND LIABILITIES

This statement represents your fund’s balance sheet, which details the assets and liabilities comprising the total value of the fund.


At 12/31/18
Assets
Investments in unaffiliated issuers, at value, including $45,632 of securities on loan (identified cost, $35,761,631)			$44,652,467
Investments in affiliated issuers, at value (identified cost, $364,116)			364,115
Foreign currency, at value (identified cost, $27)			27
Receivables for
Investments sold			81,647
Fund shares sold			540
Interest and dividends			58,150
Receivable from investment adviser			12,088
Other assets			645
Total assets			$45,169,679
Liabilities
Payables for
Investments purchased			$773
Fund shares reacquired			135,986
Collateral for securities loaned, at value			47,722
Payable to affiliates
Shareholder servicing costs			48
Distribution and/or service fees			653
Payable for independent Trustees’ compensation			3
Deferred country tax expense payable			25,440
Accrued expenses and other liabilities			98,605
Total liabilities			$309,230
Net assets			$44,860,449
Net assets consist of
Paid-in capital			$35,184,638
Total distributable earnings (loss)			9,675,811
Net assets			$44,860,449
Shares of beneficial interest outstanding			3,065,868


	Net assets		Shares outstanding		Net asset value per share
Initial Class		$20,886,959		1,415,905		$14.75
Service Class		23,973,490		1,649,963		14.53

See Notes to Financial Statements

MFS Emerging Markets Equity Portfolio

FINANCIAL STATEMENTS ^| STATEMENT OF OPERATIONS

This statement describes how much your fund earned in investment income and accrued in expenses. It also describes any gains and/or losses generated by fund operations.


Year ended 12/31/18
Net investment income (loss)
Income
Dividends	$1,184,862
Dividends from affiliated issuers	10,580
Other	7,889
Income on securities loaned	758
Interest	36
Foreign taxes withheld	(121,976	)
Total investment income	$1,082,149
Expenses
Management fee	$562,101
Distribution and/or service fees	70,266
Shareholder servicing costs	6,090
Administrative services fee	18,165
Independent Trustees’ compensation	2,102
Custodian fee	106,573
Shareholder communications	10,254
Audit and tax fees	79,070
Legal fees	526
Miscellaneous	19,438
Total expenses	$874,585
Reduction of expenses by investment adviser	(68,838	)
Net expenses	$805,747
Net investment income (loss)	$276,402
Realized and unrealized gain (loss)
Realized gain (loss) (identified cost basis)
Unaffiliated issuers (net of $4,814 country tax)	$2,607,840
Affiliated issuers	25
Foreign currency	(27,988	)
Net realized gain (loss)	$2,579,877
Change in unrealized appreciation or depreciation
Unaffiliated issuers (net of $76,380 decrease in deferred country tax)	$(10,326,676	)
Affiliated issuers	(1	)
Translation of assets and liabilities in foreign currencies	558
Net unrealized gain (loss)	$(10,326,119	)
Net realized and unrealized gain (loss)	$(7,746,242	)
Change in net assets from operations	$(7,469,840	)

See Notes to Financial Statements

MFS Emerging Markets Equity Portfolio

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
	12/31/18			12/31/17
Change in net assets
From operations
Net investment income (loss)		$276,402			$150,338
Net realized gain (loss)		2,579,877			2,939,088
Net unrealized gain (loss)		(10,326,119	)		13,593,419
Change in net assets from operations		$(7,469,840	)		$16,682,845
Total distributions to shareholders (a)		$(118,016	)		$(514,014	)
Change in net assets from fund share transactions		$(5,242,859	)		$(5,389,683	)
Total change in net assets		$(12,830,715	)		$10,779,148
Net assets
At beginning of period		57,691,164			46,912,016
At end of period (b)		$44,860,449			$57,691,164

(a)	Distributions from net investment income and from net realized gain are no longer required to be separately disclosed. See Note 2. For the year ended December 31, 2017, distributions from net investment income were $514,014.

(b)	Parenthetical disclosure of undistributed net investment income is no longer required. See Note 2. For the year ended December 31, 2017, end of period net assets included undistributed net investment income of $112,554.

See Notes to Financial Statements

MFS Emerging Markets Equity Portfolio

FINANCIAL STATEMENTS ^| FINANCIAL HIGHLIGHTS


Initial Class	Year ended

	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14

Net asset value, beginning of period		$17.19			$12.59			$11.59			$13.46			$14.51

Income (loss) from investment operations
Net investment income (loss) (d)		$0.11			$0.06			$0.15	(c)		$0.10			$0.13
Net realized and unrealized gain (loss)		(2.49	)		4.71			0.93			(1.84	)		(1.08	)
Total from investment operations		$(2.38	)		$4.77			$1.08			$(1.74	)		$(0.95	)

Less distributions declared to shareholders
From net investment income		$(0.06	)		$(0.17	)		$(0.08	)		$(0.13	)		$(0.10	)
Net asset value, end of period (x)		$14.75			$17.19			$12.59			$11.59			$13.46
Total return (%) (k)(r)(s)(x)		(13.89	)		37.98			9.28	(c)		(12.89	)		(6.66	)

Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)		1.50			1.53			1.34	(c)		1.65			1.48
Expenses after expense reductions (f)		1.37			1.40			1.13	(c)		1.40			1.40
Net investment income (loss)		0.65			0.41			1.29	(c)		0.74			0.89
Portfolio turnover		31			27			47			51			49
Net assets at end of period (000 omitted)		$20,887			$28,026			$22,605			$25,665			$33,752

Service Class	Year ended

	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14

Net asset value, beginning of period		$16.94			$12.41			$11.42			$13.24			$14.29

Income (loss) from investment operations
Net investment income (loss) (d)		$0.07			$0.02			$0.12	(c)		$0.06			$0.10
Net realized and unrealized gain (loss)		(2.46	)		4.64			0.91			(1.80	)		(1.09	)
Total from investment operations		$(2.39	)		$4.66			$1.03			$(1.74	)		$(0.99	)

Less distributions declared to shareholders
From net investment income		$(0.02	)		$(0.13	)		$(0.04	)		$(0.08	)		$(0.06	)
Net asset value, end of period (x)		$14.53			$16.94			$12.41			$11.42			$13.24
Total return (%) (k)(r)(s)(x)		(14.13	)		37.66			9.04	(c)		(13.08	)		(6.99	)

Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)		1.75			1.78			1.58	(c)		1.90			1.73
Expenses after expense reductions (f)		1.62			1.65			1.37	(c)		1.65			1.65
Net investment income (loss)		0.40			0.16			1.02	(c)		0.46			0.70
Portfolio turnover		31			27			47			51			49
Net assets at end of period (000 omitted)		$23,973			$29,665			$24,307			$25,678			$31,419

See Notes to Financial Statements

MFS Emerging Markets Equity Portfolio

Financial Highlights – continued

(c)	Amount reflects aone-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher.

(d)	Per share data is based on average shares outstanding.

(f)	Ratios do not reflect reductions from fees paid indirectly, if applicable.

(k)	The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown.

(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.

(x)	The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes.

See Notes to Financial Statements

MFS Emerging Markets Equity Portfolio

NOTES TO FINANCIAL STATEMENTS

(1)

Business and Organization

MFS Emerging Markets Equity Portfolio (the fund) is a diversified series of MFS Variable Insurance Trust II (the trust). The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as anopen-end management investment company. The shareholders of each series of the trust are separate accounts of insurance companies, which offer variable annuity and/or life insurance products, and qualified retirement and pension plans.

(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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated subsequent events occurring after the date of the fund’s Statement of Assets and Liabilities through the date that the financial statements were issued. The fund invests in foreign securities, including securities of emerging market issuers. Investments in foreign securities are vulnerable to the effects of changes in the relative values of the local currency and the U.S. dollar and to the effects of changes in each country’s market, economic, industrial, political, regulatory, geopolitical, and other conditions. Investments in emerging markets can involve additional and greater risks than the risks associated with investments in developed foreign markets. Emerging markets can have less developed markets, greater custody and operational risk, less developed legal, regulatory, and accounting systems, and greater political, social, and economic instability than developed markets.

MFS Emerging Markets Equity Portfolio

Notes to Financial Statements – continued

The Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of the 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 the 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 effect 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 the 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 the fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the fund determines its net asset value per share.


Financial Instruments	Level 1		Level 2		Level 3		Total
Equity Securities:
China		$10,046,354		$—		$—		$10,046,354
South Korea		982,928		3,946,678		—		4,929,606
Brazil		3,966,816		337,079		—		4,303,895
India		4,005,317		37,792		—		4,043,109
Hong Kong		3,367,444		—		—		3,367,444
Taiwan		3,353,911		—		—		3,353,911
South Africa		2,355,887		—		—		2,355,887
Indonesia		1,639,420		506,114		—		2,145,534
Mexico		1,945,632		—		—		1,945,632
Other Countries		6,773,500		1,339,873		—		8,113,373
Mutual Funds		411,837		—		—		411,837
Total		$38,849,046		$6,167,536		$—		$45,016,582

For further information regarding security characteristics, see the Portfolio of Investments.

MFS Emerging Markets Equity Portfolio

Notes to Financial Statements – continued

the standard trade settlement period for such securities or within three business days. The loans are collateralized by cash and/or U.S. Treasury and federal agency obligations in an amount typically at least equal to the market value of the securities loaned. On loans collateralized by cash, the cash collateral is invested in a money market fund. The market value of the loaned securities is determined at the close of business of the fund and any additional required collateral is delivered to the fund on the next business day. The lending agent provides the fund with indemnification against Borrower default. In the event of Borrower default, the lending agent will, for the benefit of the fund, either purchase securities identical to those loaned or, when such purchase is commercially impracticable, pay the fund the market value of the loaned securities. In return, the lending agent assumes the fund’s rights to the related collateral. If the collateral value is less than the cost to purchase identical securities, the lending agent is responsible for the shortfall, but only to the extent that such shortfall is not due to a decline in collateral value resulting from collateral reinvestment for which the fund bears the risk of loss. At period end, the fund had investment securities on loan, all of which were classified as equity securities in the fund’s Portfolio of Investments, with a fair value of $45,632. The fair value of the fund’s investment securities on loan and a related liability of $47,722 for cash collateral received on securities loaned are both presented gross in the Statement of Assets and Liabilities. The collateral on securities loaned exceeded the value of securities on loan at period end. The liability for cash collateral for securities loaned is carried at fair value, which is categorized as level 2 within the fair value hierarchy. A portion of the income generated upon investment of the collateral is remitted to the Borrowers, and the remainder is allocated between the fund and the lending agent. On loans collateralized by U.S. Treasury and/or federal agency obligations, a fee is received from the Borrower, and is allocated between the fund and the lending agent. Income from securities lending is separately reported in the Statement of Operations. The dividend and interest income earned on the securities loaned is accounted for in the same manner as other dividend and interest income.

Investment Transactions and Income– Investment transactions are recorded on the trade date. Interest income is recorded on the accrual basis. Dividends received in cash are recorded on theex-dividend date. Certain dividends from foreign securities will be recorded when the fund is informed of the dividend if such information is obtained subsequent to theex-dividend date. Dividend and interest payments received in additional securities are recorded on theex-dividend orex-interest date in an amount equal to the value of the security on such date.

Book/tax differences primarily relate to wash sale loss deferrals and foreign taxes.

The tax character of distributions declared to shareholders for the last two fiscal years is as follows:


	Year ended 12/31/18		Year ended 12/31/17
Ordinary income (including any short-term capital gains)		$118,016		$514,014

MFS Emerging Markets Equity Portfolio

Notes to Financial Statements – continued

The federal tax cost and the tax basis components of distributable earnings were as follows:


As of 12/31/18

Cost of investments	$36,968,885
Gross appreciation	11,001,173
Gross depreciation	(2,953,476	)
Net unrealized appreciation (depreciation)	$8,047,697

Undistributed ordinary income	230,717
Undistributed long-term capital gain	1,420,887
Other temporary differences	(23,490	)


	From net investment income

	Year ended 12/31/18		Year ended 12/31/17
Initial Class		$87,265		$275,094
Service Class		30,751		238,920
Total		$118,016		$514,014

(3)

Transactions with Affiliates


Up to $500 million			1.05%
In excess of $500 million			1.00%

MFS has agreed in writing to reduce its management fee by a specified amount if certain MFS mutual fund assets exceed thresholds agreed to by MFS and the fund’s Board of Trustees. For the year ended December 31, 2018, this management fee reduction amounted to $5,085, which is included in the reduction of total expenses in the Statement of Operations. The management fee incurred for the year ended December 31, 2018 was equivalent to an annual effective rate of 1.04% of the fund’s average daily net assets.

For the period from January 1, 2018 through July 31, 2018, the investment adviser had agreed in writing to pay a portion of the fund’s total annual operating expenses, excluding interest, taxes, extraordinary expenses, brokerage and transaction costs, and investment-related expenses, such that total annual operating expenses did not exceed 1.40% of average daily net assets for the Initial Class shares and 1.65% of average daily net assets for the Service Class shares. This written agreement terminated on July 31, 2018. For the period from January 1, 2018 through July 31, 2018, this reduction amounted to $6,399, which is included in the reduction of total expenses in the Statement of Operations. Effective August 1, 2018, the investment adviser has agreed in writing to pay a portion of the fund’s total annual operating expenses, excluding interest, taxes, extraordinary expenses, brokerage and transaction costs, and investment-related expenses, such that total annual operating expenses do not exceed 1.33% of average daily net assets for the Initial Class shares and 1.58% of average daily net assets for the Service Class shares. This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until April 30, 2020. For the period from August 1, 2018 through December 31, 2018, this reduction amounted to $57,354, which is included in the reduction of total expenses in the Statement of Operations.

MFS Emerging Markets Equity Portfolio

Notes to Financial Statements – continued

Shareholder Servicing Agent– MFS Service Center, Inc. (MFSC), a wholly-owned subsidiary of MFS, receives a fee from the fund for its services as shareholder servicing agent. For the year ended December 31, 2018, the fee was $5,819, which equated to 0.0109% annually of the fund’s average daily net assets. MFSC also receives payment from the fund forout-of-pocket expenses paid by MFSC on behalf of the fund. For the year ended December 31, 2018, these costs amounted to $271.

Trustees’ and Officers’ Compensation – The fund pays compensation to independent Trustees in the form of a retainer, attendance fees, and additional compensation to Board and Committee chairpersons. The 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 – This fund and certain other funds managed by MFS (the funds) have entered into a service agreement (the ISO Agreement) which provides for payment of fees solely by the funds to Tarantino LLC in return for the provision of services of an Independent Senior Officer (ISO) for the funds. Frank L. Tarantino serves as the ISO and is an officer of the funds and the sole member of Tarantino LLC. The funds can terminate the ISO Agreement with Tarantino LLC at any time under the terms of the ISO Agreement. For the year ended December 31, 2018, the fee paid by the fund under this agreement was $92 and is included in “Miscellaneous” expense in the Statement of Operations. MFS has agreed to bear all expenses associated with office space, other administrative support, and supplies provided to the ISO.

The fund is permitted to engage in purchase and sale transactions with funds and accounts for which MFS serves as investment adviser orsub-adviser (“cross-trades”) pursuant to a policy adopted by the Board of Trustees. This policy has been designed to ensure that cross-trades conducted by the fund comply with Rule17a-7 under the Investment Company Act of 1940. During the year ended December 31, 2018, the fund engaged in purchase and sale transactions pursuant to this policy, which amounted to $33,674 and $62,507, respectively. The sales transactions resulted in net realized gains (losses) of $(1,766).

Effective on or about January 3, 2018, the adviser has voluntarily undertaken to reimburse the fund from its own resources on a quarterly basis for the cost of investment research embedded in the cost of the fund’s securities trades. This agreement may be rescinded at any time. For the period on or about January 3, 2018 to December 31, 2018, this reimbursement amounted to $7,869, which is included in “Other” income in the Statement of Operations.

(4)

Portfolio Securities

For the year ended December 31, 2018, purchases and sales of investments, other than short-term obligations, aggregated $16,393,244 and $21,413,460, respectively.

(5)

Shares of Beneficial Interest

The 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:


	Year ended 12/31/18						Year ended 12/31/17

	Shares			Amount			Shares			Amount
Shares sold
Initial Class		59,189			$1,002,780			143,495			$2,218,204
Service Class		398,376			6,530,385			310,949			4,666,469
		457,565			$7,533,165			454,444			$6,884,673

Shares issued to shareholders in reinvestment of distributions
Initial Class		5,241			$87,265			17,302			$275,094
Service Class		1,874			30,751			15,237			238,920
		7,115			$118,016			32,539			$514,014

Shares reacquired
Initial Class		(278,563	)		$(4,678,515	)		(325,734	)		$(4,881,282	)
Service Class		(501,945	)		(8,215,525	)		(533,229	)		(7,907,088	)
		(780,508	)		$(12,894,040	)		(858,963	)		$(12,788,370	)

MFS Emerging Markets Equity Portfolio

Notes to Financial Statements – continued


	Year ended 12/31/18						Year ended 12/31/17

	Shares			Amount			Shares			Amount
Net change
Initial Class		(214,133	)		$(3,588,470	)		(164,937	)		$(2,387,984	)
Service Class		(101,695	)		(1,654,389	)		(207,043	)		(3,001,699	)
		(315,828	)		$(5,242,859	)		(371,980	)		$(5,389,683	)

The fund is one of several mutual funds in which certain MFS funds may invest. The MFS funds do not invest in the underlying funds for the purpose of exercising management or control. At the end of the period, the MFS Growth Allocation Portfolio was the owner of record of approximately 8% of the value of outstanding voting shares of the fund.

(6)

Line of Credit

The fund and certain other funds managed by MFS participate in a $1.25 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 Overnight Bank Funding rate or daily one month LIBOR plus an agreed upon spread. A commitment fee, based on the average daily, unused portion of the committed line of credit, is allocated among the participating funds. In addition, the 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, at a rate equal to the Overnight Bank Funding rate plus an agreed upon spread. For the year ended December 31, 2018, the fund’s commitment fee and interest expense were $316 and $0, respectively, and are included in “Miscellaneous” expense in the Statement of Operations.

(7)

Investments in Affiliated Issuers


Affiliated Issuers		Beginning Shares/Par Amount			Acquisitions Shares/Par Amount		Dispositions Shares/Par Amount			Ending Shares/Par Amount

MFS Institutional Money Market Portfolio			439,940			13,716,922		(13,792,710	)		364,152

Affiliated Issuers	Realized Gain (Loss)	Change in Unrealized Appreciation/ Depreciation			Capital Gain Distributions		Dividend Income			Ending Value

MFS Institutional Money Market Portfolio	$25		$(1	)		$—		$10,580			$364,115

MFS Emerging Markets Equity Portfolio

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees of MFS Variable Insurance Trust II and the Shareholders of

MFS Emerging Markets Equity Portfolio:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities of MFS Emerging Markets Equity Portfolio (the “Fund”), including the portfolio of investments, as of December 31, 2018, the related statement 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of December 31, 2018, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

DELOITTE & TOUCHE LLP

Boston, Massachusetts

February 15, 2019

We have served as the auditor of one or more of the MFS investment companies since 1924.

MFS Emerging Markets Equity Portfolio

TRUSTEES AND OFFICERS – IDENTIFICATION AND BACKGROUND


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds overseen by the Trustee	Principal Occupations During the Past Five Years	Other Directorships During the Past Five Years (j)
INTERESTED TRUSTEES
Robert J. Manning (k) (age 55)	Trustee	February 2004	135	Massachusetts Financial Services Company, Executive Chairman (since January 2017); Director; Chairman of the Board; Chief Executive Officer (until 2015);Co-Chief Executive Officer(2015-2016)	N/A

Robin A. Stelmach (k) (age 57)	Trustee	January 2014	135	Massachusetts Financial Services Company, Vice Chair (since January 2017); Chief Operating Officer and Executive Vice President (until January 2017)	N/A

INDEPENDENT TRUSTEES
John P. Kavanaugh (age 64)	Trustee and Chair of Trustees	January 2009	135	Private investor	N/A

Steven E. Buller (age 67)	Trustee	February 2014	135	Financial Accounting Standards Advisory Council, Chairman(2014-2015); Public Company Accounting Oversight Board, Standing Advisory Group, Member (until 2014); BlackRock, Inc. (investment management), Managing Director (until 2014), BlackRock Finco UK (investment management), Director (until 2014)	N/A

John A. Caroselli (age 64)	Trustee	March 2017	135	JC Global Advisors, LLC (management consulting), President (since 2015); First Capital Corporation (commercial finance), Executive Vice President (until 2015)	N/A

Maureen R. Goldfarb (age 63)	Trustee	January 2009	135	Private investor	N/A

Michael Hegarty (age 74)	Trustee	December 2004	135	Private investor	Rouse Properties Inc., Director (until 2016); Capmark Financial Group Inc., Director (until 2015)

Peter D. Jones (age 63)	Trustee	January 2019	135	Franklin Templeton Distributors, Inc. (investment management), President (until 2015); Franklin Templeton Institutional, LLC (investment management), Chairman (until 2015)	N/A

James W. Kilman, Jr. (age 57)	Trustee	January 2019	135	KielStrand Capital LLC (family office and merchant bank), Chief Executive Officer (since 2016); Morgan Stanley & Co. (financial services), Vice Chairman of Investment Banking,Co-Head of Diversified Financials Coverage – Financial Institutions Investment Banking Group (until 2016)	alpha-En Corporation, Director (since 2016)

MFS Emerging Markets Equity Portfolio

Trustees and Officers – continued


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds overseen by the Trustee	Principal Occupations During the Past Five Years	Other Directorships During the Past Five Years (j)
Clarence Otis, Jr. (age 62)	Trustee	March 2017	135	Darden Restaurants, Inc., Chief Executive Officer (until 2014)	VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director; Federal Reserve Bank of Atlanta, Director (until 2015)

Maryanne L. Roepke (age 62)	Trustee	May 2014	135	American Century Investments (investment management), Senior Vice President and Chief Compliance Officer (until 2014)	N/A

Laurie J. Thomsen (age 61)	Trustee	March 2005	135	Private investor	The Travelers Companies, Director; Dycom Industries, Inc., Director (since 2015)


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds for which the Person is an Officer	Principal Occupations During the Past Five Years
OFFICERS
Christopher R. Bohane (k) (age 45)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Vice President and Assistant General Counsel

Kino Clark (k) (age 50)	Assistant Treasurer	January 2012	135	Massachusetts Financial Services Company, Vice President

John W. Clark, Jr. (k) (age 51)	Assistant Treasurer	April 2017	135	Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head – Treasurer’s Office (until February 2017)

Thomas H. Connors (k) (age 59)	Assistant Secretary and Assistant Clerk	September 2012	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Ethan D. Corey (k) (age 55)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel

David L. DiLorenzo (k) (age 50)	President	July 2005	135	Massachusetts Financial Services Company, Senior Vice President

Heidi W. Hardin (k) (age 51)	Secretary and Clerk	April 2017	135	Massachusetts Financial Services Company, Executive Vice President and General Counsel (since March 2017); Harris Associates (investment management), General Counsel (from September 2015 to January 2017); Janus Capital Management LLC (investment management), Senior Vice President and General Counsel (until September 2015)

Brian E. Langenfeld (k) (age 45)	Assistant Secretary and Assistant Clerk	June 2006	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Amanda S. Mooradian (k) (age 39)	Assistant Secretary and Assistant Clerk	September 2018	135	Massachusetts Financial Services Company, Assistant Vice President and Counsel

Susan A. Pereira (k) (age 48)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Kasey L. Phillips (k) (age 48)	Assistant Treasurer	September 2012	135	Massachusetts Financial Services Company, Vice President

Matthew A. Stowe (k) (age 44)	Assistant Secretary and Assistant Clerk	October 2014	135	Massachusetts Financial Services Company, Vice President and Assistant General Counsel

MFS Emerging Markets Equity Portfolio

Trustees and Officers – continued


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds for which the Person is an Officer	Principal Occupations During the Past Five Years
Frank L. Tarantino (age 74)	Independent Senior Officer	June 2004	135	Tarantino LLC (provider of compliance services), Principal

Richard S. Weitzel (k) (age 48)	Assistant Secretary and Assistant Clerk	October 2007	135	Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel

Martin J. Wolin (k) (age 51)	Chief Compliance Officer	July 2015	135	Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer (since July 2015); Mercer (financial service provider), Chief Risk and Compliance Officer, North America and Latin America (until June 2015)

James O. Yost (k) (age 58)	Treasurer	September 1990	135	Massachusetts Financial Services Company, Senior Vice President

(h)

(j)	Directorships or trusteeships of companies required to report to the Securities and Exchange Commission (i.e., “public companies”).

(k)

Messrs. Buller, Hegarty, Kilman and Otis and Ms. Roepke are members of the Trust’s Audit Committee.

Each of the Interested Trustees and certain Officers hold comparable officer positions with certain affiliates of MFS.

The Statement of Additional Information for a Fund includes further information about the Trustees and is available without charge upon request by calling1-800-225-2606.


Investment Adviser Massachusetts Financial Services Company 111 Huntington Avenue Boston, MA 02199-7618		Custodian State Street Bank and Trust Company 1 Lincoln Street Boston, MA 02111-2900
Distributor MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618		Independent Registered Public Accounting Firm Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116
Portfolio Manager(s) Jose Luis Garcia Robert Lau Harry Purcell

MFS Emerging Markets Equity Portfolio

BOARD REVIEW OF INVESTMENT ADVISORY AGREEMENT

Based on information provided by Broadridge and MFS, the Trustees reviewed the Fund’s total return investment performance as well as the Broadridge performance universe over various time periods. The Trustees placed particular emphasis on the total return performance of the Fund’s Initial Class shares in comparison to the performance of funds in its Broadridge performance universe over the three-year period ended December 31, 2017, which the Trustees believed was a long enough period to reflect differing market conditions. The total return performance of the Fund’s Initial Class shares was in the 3rd quintile relative to the other funds in the universe for this three-year period (the 1st quintile being the best performers and the 5th quintile being the worst performers). The total return performance of the Fund’s Initial Class shares was in the 3rd quintile for theone-year period and the 4th quintile for the five-year period ended December 31, 2017 relative to the Broadridge performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.

MFS Emerging Markets Equity Portfolio

Board Review of Investment Advisory Agreement – continued

In assessing the reasonableness of the Fund’s advisory fee, the Trustees considered, among other information, the Fund’s advisory fee and the total expense ratio of the Fund’s Initial Class shares as a percentage of average daily net assets and the advisory fee and total expense ratios of peer groups of funds based on information provided by Broadridge. The Trustees considered that MFS currently observes an expense limitation for the Fund, which may not be changed without the Trustees’ approval. The Trustees also considered that, according to the data provided by Broadridge (which takes into account any fee reductions or expense limitations that were in effect during the Fund’s last fiscal year), the Fund’s effective advisory fee rate was approximately at the Broadridge expense group median and the Fund’s total expense ratio was higher than the Broadridge expense group median. The Trustees also noted that MFS has agreed to further reduce such expense limitation for the Fund effective August 1, 2018, which may not be changed without the Trustees’ approval.

The Trustees also considered whether the Fund may benefit from any economies of scale in the management of the Fund in the event of growth in assets of the Fund and/or growth in assets of the MFS Funds as a whole. They noted that the Fund’s advisory fee rate schedule is subject to a contractual breakpoint that reduces the Fund’s advisory fee rate on average daily net assets over $500 million. The Trustees also noted that MFS has agreed in writing to waive a portion of the management fees of certain MFS Funds, including the Fund, if the total combined assets of certain funds within the MFS Funds’ complex increase above agreed upon thresholds (the “group fee waiver”), enabling the Fund’s shareholders to share in the benefits from any economies of scale at the complex level. The group fee waiver is reviewed and renewed annually between the Board and MFS. The Trustees concluded that the breakpoint and the group fee waiver were sufficient to allow the Fund to benefit from economies of scale as its assets and overall complex assets grow.

MFS Emerging Markets Equity Portfolio

PROXY VOTING POLICIES AND INFORMATION

QUARTERLY PORTFOLIO DISCLOSURE

The fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website athttp://www.sec.gov. A shareholder can obtain the portfolio holdings report for the first and third quarters of the fund’s fiscal year atmfs.com/vit2 by choosing the fund’s name and then selecting the “Resources” tab and clicking on “Prospectus and Reports”.

FURTHER INFORMATION

INFORMATION ABOUT FUND CONTRACTS AND LEGAL CLAIMS

FEDERAL TAX INFORMATION (unaudited)

The following information is provided pursuant to provisions of the Internal Revenue Code.

For corporate shareholders, 4.07% of the ordinary income dividends paid during the fiscal year qualify for the corporate dividends received deduction.

Income derived from foreign sources was $1,160,965. The fund intends to pass through foreign tax credits of $127,969 for the fiscal year.

rev. 3/16



FACTS		WHAT DOES MFS DO WITH YOUR PERSONAL INFORMATION?


Why?		Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.

What?

The types of personal information we collect and share depend on the product or service you have with us. This information can include:

• Social Security number and account balances

• Account transactions and transaction history

• Checking account information and wire transfer instructions

When you areno longer our customer, we continue to share your information as described in this notice.


How?		All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons MFS chooses to share; and whether you can limit this sharing.


Reasons we can share your personal information	Does MFS share?	Can you limit this sharing?
For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes – to offer our products and services to you	No	We don’t share
For joint marketing with other financial companies	No	We don’t share
For our affiliates’ everyday business purposes – information about your transactions and experiences	No	We don’t share
For our affiliates’ everyday business purposes – information about your creditworthiness	No	We don’t share
For nonaffiliates to market to you	No	We don’t share



Questions?		Call800-225-2606 or go tomfs.com.


Page 2


Who we are
Who is providing this notice?		MFS Funds, MFS Investment Management, MFS Institutional Advisors, Inc., and MFS Heritage Trust Company.


What we do
How does MFS protect my personal information?		To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include procedural, electronic, and physical safeguards for the protection of the personal information we collect about you.
How does MFS collect my personal information?		We collect your personal information, for example, when you • open an account or provide account information • direct us to buy securities or direct us to sell your securities • make a wire transfer We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can’t I limit all sharing?		Federal law gives you the right to limit only • sharing for affiliates’ everyday business purposes – information about your creditworthiness • affiliates from using your information to market to you • sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing.


Definitions
Affiliates		Companies related by common ownership or control. They can be financial and nonfinancial companies. • MFS does not share personal information with affiliates, except for everyday business purposes as described on page one of this notice.
Nonaffiliates		Companies not related by common ownership or control. They can be financial and nonfinancial companies. • MFS does not share with nonaffiliates so they can market to you.
Joint marketing		A formal agreement between nonaffiliated financial companies that together market financial products or services to you. • MFS doesn’t jointly market.


Other important information
If you own an MFS product or receive an MFS service in the name of a third party such as a bank or broker-dealer, their privacy policy may apply to you instead of ours.

LOGO

Annual Report

December 31, 2018

LOGO

MFS^® Global Governments Portfolio

LOGO

MFS^® Variable Insurance Trust II

WGS-ANN

MFS® Global Governments Portfolio

CONTENTS


Letter from the Executive Chairman			1
Portfolio composition			2
Management review			4
Performance summary			5
Expense table			6
Portfolio of investments			7
Statement of assets and liabilities			11
Statement of operations			12
Statements of changes in net assets			13
Financial highlights			14
Notes to financial statements			16
Report of independent registered public accounting firm			24
Trustees and officers			25
Board review of investment advisory agreement			28
Proxy voting policies and information			30
Quarterly portfolio disclosure			30
Further information			30
Information about fund contracts and legal claims			30
MFS^® privacy notice			31

The report is prepared for the general information of contract owners. 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 OR CREDIT UNION GUARANTEE• NOT A DEPOSIT• NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY OR NCUA/NCUSIF

MFS Global Governments Portfolio

LETTER FROM THE EXECUTIVE CHAIRMAN

LOGO

Dear Contract Owners:

Respectfully,

LOGO

Robert J. Manning

Executive Chairman

MFS Investment Management

February 15, 2019

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

MFS Global Governments Portfolio

PORTFOLIO COMPOSITION

Portfolio structure (i)

LOGO


Fixed income sectors (i)
Non-U.S. Government Bonds			48.9%
U.S. Treasury Securities			47.7%
Emerging Markets Bonds			2.0%
Mortgage-Backed Securities			0.6%
U.S. Government Agencies			0.5%
Commercial Mortgage-Backed Securities (o)			0.0%

Composition including fixed income credit quality (a)(i)
AAA			9.4%
AA			6.9%
A			12.3%
BBB			18.9%
BB (o)			0.0%
B			2.0%
C (o)			0.0%
U.S. Government			47.8%
Federal Agencies			1.1%
Not Rated			1.3%
Cash & Cash Equivalents			0.3%
Other (o)			0.0%


Portfolio facts (i)
Average Duration (d)			8.7
Average Effective Maturity (m)			10.6 yrs.

Issuer country weightings (i)(x)
United States			49.1%
Japan			12.3%
Italy			10.9%
Portugal			7.5%
United Kingdom			5.6%
Germany			4.3%
Canada			2.4%
Greece			2.0%
Spain			1.7%
Other Countries			4.2%

Currency exposure weightings (i)(y)
United States Dollar			40.3%
Euro			29.1%
Japanese Yen			21.0%
British Pound Sterling			7.0%
Norwegian Krone			1.5%
Australian Dollar			1.2%
Danish Krone			0.5%
Canadian Dollar			(0.4)%
New Zealand Dollar			(0.5)%
Other Currencies			0.3%

(a)

For all securities other than those specifically described below, ratings are assigned to underlying securities utilizing ratings from Moody’s, Fitch, and Standard & Poor’s rating agencies and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). Securities rated BBB or higher are considered investment grade. All ratings are subject to change. U.S. Government includes securities issued by the U.S. Department of the Treasury. Federal Agencies includes rated and unrated U.S. Agency fixed-income securities, U.S. Agency mortgage-backed securities, and collateralized mortgage obligations of U.S. Agency mortgage-backed securities. Not Rated includes fixed income securities and fixed income derivatives, which have not been rated by any rating agency. The fund may or may not have held all of these instruments on this date. The fund is not rated by these agencies.

(d)

(i)

(m)

MFS Global Governments Portfolio

Portfolio Composition – continued

(o)

Less than 0.1%.

(x)

Represents the portfolio’s exposure to issuer countries as a percentage of a portfolio’s net assets. For purposes of this presentation, United States includes Cash & Cash Equivalents and Other.

(y)

Represents the portfolio’s exposure to a particular currency as a percentage of a portfolio’s net assets. For purposes of this presentation, United States Dollar includes Cash & Cash Equivalents and Other.

Where the fund holds convertible bonds, they are treated as part of the equity portion of the portfolio.

Other includes equivalent exposure from currency derivatives and/or any offsets to derivative positions.

Percentages are based on net assets as of December 31, 2018.

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

MFS Global Governments Portfolio

MANAGEMENT REVIEW

Summary of Results

For the twelve months ended December 31, 2018, Initial Class shares of the MFS Global Governments Portfolio (“fund”) provided a total return of –1.11%, while Service Class shares of the fund provided a total return of –1.32%. These compare with a return of –0.66% for the fund’s benchmark, the JPMorgan Global Government Bond Index (Unhedged).

Market Environment

Factors Affecting Performance

During the reporting period, the fund’s currency exposure was a key detractor from performance relative to the JPMorgan Global Government Bond Index (Unhedged), most notably its overweight exposures to the Japanese yen and Norwegian krone and underweight exposure to the Australian dollar. Security selection within both Spanish and French-issued debt also weakened relative returns.

On the positive side, the fund’s shorter duration (d) exposure to the United States yield curve (y), where interest rates generally rose, and its longer duration exposure to both the New Zealand and Canada yield curves, where interest rates generally declined, positively impacted relative returns. From an asset allocation perspective, the fund’sout-of-benchmark exposure to Portuguese bonds and overweight exposure to Italian bonds helped relative performance as Portuguese and Italian bond returns outpaced the benchmark. An underweight exposure to French bonds, which underperformed the benchmark during the reporting period, also benefited the fund’s relative returns.

Respectfully,

Portfolio Manager(s)

Matt Ryan and Erik Weisman

(d)	Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value.

(y)	A yield curve graphically depicts the yields of different maturity bonds of the same credit quality and type; a normal yield curve is upward sloping, with short-term rates lower than long-term rates.

MFS Global Governments Portfolio

PERFORMANCE SUMMARY THROUGH 12/31/18

Growth of a Hypothetical $10,000 Investment

LOGO

Total Returns through 12/31/18

Average annual total returns


	Share Class	Class Inception Date	1-yr	5-yr	10-yr
	Initial Class	5/16/88	(1.11)%	0.59%	1.26%
	Service Class	8/24/01	(1.32)%	0.34%	1.01%

Comparative benchmark(s)
	JPMorgan Global Government Bond Index (Unhedged) (f)		(0.66)%	1.11%	1.74%

(f)	Source: FactSet Research Systems Inc.

Benchmark Definition(s)

JPMorgan Global Government Bond Index (Unhedged) – measures developed government bond markets around the world.

It is not possible to invest directly in an index.

Notes to Performance Summary

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

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

MFS Global Governments Portfolio

EXPENSE TABLE

Fund Expenses Borne by the Contract Holders during the Period,

July 1, 2018 through December 31, 2018

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period July 1, 2018 through December 31, 2018.

Actual Expenses

Hypothetical Example for Comparison Purposes


Share Class		Annualized Expense Ratio		Beginning Account Value 7/01/18		Ending Account Value 12/31/18		Expenses Paid During Period (p) 7/01/18-12/31/18
Initial Class	Actual		0.87%		$1,000.00		$1,001.26		$4.39
Initial Class	Hypothetical (h)		0.87%		$1,000.00		$1,020.82		$4.43
Service Class	Actual		1.12%		$1,000.00		$1,000.36		$5.65
Service Class	Hypothetical (h)		1.12%		$1,000.00		$1,019.56		$5.70

(h)	5% class return per year before expenses.

(p)	“Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect theone-half year period).

MFS Global Governments Portfolio

PORTFOLIO OF INVESTMENTS – 12/31/18

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



Issuer	Shares/Par		Value ($)
BONDS – 99.0%
Foreign Bonds – 50.4%
Australia – 1.2%
Commonwealth of Australia, 2.75%, 11/21/2028	AUD	1,940,000	$	1,417,033
Commonwealth of Australia, 3%, 3/21/2047		250,000		182,183

			$	1,599,216

Canada – 2.4%
Government of Canada, 2.5%, 6/01/2024	CAD	663,000	$	500,446
Government of Canada, 1.5%, 6/01/2026		310,000		220,236
Government of Canada, 2%, 6/01/2028		2,800,000		2,056,724
Government of Canada, 4%, 6/01/2041		500,000		483,054
Government of Canada, 2.75%, 12/01/2048		50,000		41,166

			$	3,301,626

Denmark – 0.3%
Kingdom of Denmark, 4.5%, 11/15/2039	DKK	1,500,000	$	400,333

France – 1.2%
Republic of France, 4.5%, 4/25/2041	EUR	259,000	$	474,819
Republic of France, 3.25%, 5/25/2045		405,000		637,903
Republic of France, 4%, 4/25/2055		210,000		387,624
Republic of France, 1.75%, 5/25/2066		150,000		165,955

			$	1,666,301

Germany – 4.3%
Federal Republic of Germany, 0.5%, 2/15/2026	EUR	400,000	$	476,370
Federal Republic of Germany, 0.5%, 2/15/2028		4,250,000		5,011,935
Federal Republic of Germany, 2.5%, 7/04/2044		135,000		214,781
Federal Republic of Germany, 2.5%, 8/15/2046		65,000		104,842

			$	5,807,928

Greece – 2.0%
Hellenic Republic, 4.375%, 8/01/2022	EUR	1,157,000	$	1,378,925
Hellenic Republic, 3.375%, 2/15/2025		1,200,000		1,327,900

			$	2,706,825

Italy – 10.8%
Republic of Italy, 3.75%, 3/01/2021	EUR	4,299,000	$	5,243,194
Republic of Italy, 5.5%, 9/01/2022		2,195,000		2,881,264



Issuer	Shares/Par		Value ($)
BONDS – continued
Foreign Bonds – continued
Italy – continued
Republic of Italy, 1.6%, 6/01/2026	EUR	2,400,000	$	2,623,341
Republic of Italy, 2%, 2/01/2028		1,300,000		1,424,611
Republic of Italy, 1.65%, 3/01/2032		1,400,000		1,388,603
Republic of Italy, 5%, 9/01/2040		368,000		517,159
Republic of Italy, 3.25%, 9/01/2046		500,000		557,580

			$	14,635,752

Japan – 12.3%
Government of Japan, 1.7%, 9/20/2032	JPY	355,000,000	$	3,889,146
Government of Japan, 1.5%, 3/20/2034		591,000,000		6,357,651
Government of Japan, 2.4%, 3/20/2037		352,600,000		4,314,456
Government of Japan, 1.8%, 3/20/2043		23,000,000		265,562
Government of Japan, 0.8%, 6/20/2047		125,000,000		1,167,317
Government of Japan, 2%, 3/20/2052		53,900,000		667,680

			$	16,661,812

Norway – 1.2%
Government of Norway, 2%, 4/26/2028	NOK	14,000,000	$	1,651,211

Portugal – 7.3%
Republic of Portugal, 4.95%, 10/25/2023	EUR	1,380,000	$	1,918,030
Republic of Portugal, 2.875%, 10/15/2025		2,700,000		3,442,164
Republic of Portugal, 4.125%, 4/14/2027		2,300,000		3,163,076
Republic of Portugal, 3.875%, 2/15/2030		800,000		1,089,551
Republic of Portugal, 4.1%, 4/15/2037		250,000		348,079

			$	9,960,900

Spain – 1.6%
Kingdom of Spain, 5.75%, 7/30/2032	EUR	166,000	$	281,050
Kingdom of Spain, 4.7%, 7/30/2041		870,000		1,407,106
Kingdom of Spain, 5.15%, 10/31/2044		300,000		518,870

			$	2,207,026

Sweden – 0.2%
Kingdom of Sweden, 1%, 11/12/2026	SEK	3,000,000	$	356,733

United Kingdom – 5.6%
United Kingdom Treasury, 4.25%, 12/07/2027	GBP	1,883,000	$	3,026,451
United Kingdom Treasury, 4.25%, 6/07/2032		71,000		120,419
United Kingdom Treasury, 4.25%, 3/07/2036		438,000		770,669
United Kingdom Treasury, 4.25%, 12/07/2040		127,000		233,738
United Kingdom Treasury, 3.25%, 1/22/2044		1,080,000		1,759,501
United Kingdom Treasury, 3.75%, 7/22/2052		489,000		933,710

MFS Global Governments Portfolio

Portfolio of Investments – continued



Issuer	Shares/Par		Value ($)
BONDS – continued
Foreign Bonds – continued
United Kingdom – continued
United Kingdom Treasury, 4%, 1/22/2060	GBP	205,000	$	434,862
United Kingdom Treasury, 3.5%, 7/22/2068		150,000		302,381

			$	7,581,731

Total Foreign Bonds			$	68,537,394


U.S. Bonds – 48.6%
Asset-Backed & Securitized – 0.0%
Commercial Mortgage Asset Trust, 1.238%, 1/17/2032 (i)(z)	$	9,213	$	3

Mortgage-Backed – 0.6%
Fannie Mae, 5.18%, 3/01/2019	$	55,561	$	55,490
Freddie Mac, 5.085%, 3/25/2019		35,812		35,783
Freddie Mac, 3.32%, 2/25/2023		5,000		5,070
Freddie Mac, 3.243%, 4/25/2027		400,000		399,337
Freddie Mac, 3.117%, 6/25/2027		322,320		318,763

			$	814,443

U.S. Government Agencies and Equivalents – 0.5%
Small Business Administration, 4.57%, 6/01/2025	$	4,475	$	4,596
Small Business Administration, 5.09%, 10/01/2025		3,821		3,947
Small Business Administration, 5.21%, 1/01/2026		59,445		61,572
Small Business Administration, 2.22%, 3/01/2033		576,163		561,002

			$	631,117

U.S. Treasury Obligations – 47.5%
U.S. Treasury Bonds, 2.25%, 2/15/2027	$	3,987,000	$	3,874,329
U.S. Treasury Bonds, 4.5%, 8/15/2039		3,028,400		3,779,049



Issuer	Shares/Par		Value ($)
BONDS – continued
U.S. Bonds – continued
U.S. Treasury Obligations – continued
U.S. Treasury Bonds, 2.75%, 11/15/2042	$	2,261,000	$	2,165,678
U.S. Treasury Bonds, 3.625%, 2/15/2044		4,974,000		5,519,435
U.S. Treasury Bonds, 3%, 5/15/2047		1,743,000		1,738,591
U.S. Treasury Notes, 0.875%, 5/15/2019		4,800,000		4,771,688
U.S. Treasury Notes, 3.5%, 5/15/2020		10,355,000		10,483,451
U.S. Treasury Notes, 1.375%, 5/31/2021		4,680,400		4,559,360
U.S. Treasury Notes, 1.75%, 5/15/2022		6,253,000		6,106,132
U.S. Treasury Notes, 1.375%, 8/31/2023		1,689,000		1,605,495
U.S. Treasury Notes, 2.75%, 2/15/2024		4,290,000		4,335,695
U.S. Treasury Notes, 2.25%, 11/15/2025		7,224,000		7,067,737
U.S. Treasury Notes, 1.5%, 8/15/2026		6,720,000		6,203,321
U.S. Treasury Notes, 2.875%, 5/15/2028		2,272,100		2,308,640

			$	64,518,601

Total U.S. Bonds			$	65,964,164

Total Bonds (Identified Cost, $132,549,856)			$	134,501,558


INVESTMENT COMPANIES (h) – 0.7%
Money Market Funds – 0.7%
MFS Institutional Money Market Portfolio, 2.4% (v) (Identified Cost, $902,816)		902,832	$	902,742

OTHER ASSETS, LESS LIABILITIES – 0.3%				429,292

NET ASSETS – 100.0%			$	135,833,592

(h)

(i)

Interest only security for which the fund receives interest on notional principal (Par amount). Par amount shown is the notional principal and does not reflect the cost of the security.

(v)

(z)

Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involvetime-consuming negotiations and prompt sale at an acceptable price may be difficult. The fund holds the following restricted securities:


Restricted Securities	Acquisition Date	Cost		Value

Commercial Mortgage Asset Trust, 1.238%, 1/17/2032	8/25/03-12/02/11		$3		$3

% of Net assets					0.0%

The following abbreviations are used in this report and are defined:

PLC

Public Limited Company

MFS Global Governments Portfolio

Portfolio of Investments – continued

Abbreviations indicate amounts shown in currencies other than the U.S. dollar. All amounts are stated in U.S. dollars unless otherwise indicated. A list of abbreviations is shown below:

AUD

Australian Dollar

CAD

Canadian Dollar

CHF

Swiss Franc

CLP

Chilean Peso

DKK

Danish Krone

EUR

Euro

GBP

British Pound

INR

Indian Rupee

JPY

Japanese Yen

MXN

Mexican Peso

NOK

Norwegian Krone

NZD

New Zealand Dollar

SEK

Swedish Krona

ZAR

South African Rand

Derivative Contracts at 12/31/18

Forward Foreign Currency Exchange Contracts


Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
Asset Derivatives
USD	826,890	AUD	1,157,066	Brown Brothers Harriman		1/11/2019		$11,768
USD	676,140	AUD	942,000	Citibank N.A.		1/11/2019		12,526
USD	1,907,788	AUD	2,669,841	Deutsche Bank AG		1/11/2019		26,955
USD	709,986	AUD	995,000	Goldman Sachs International		1/11/2019		9,035
USD	830,074	AUD	1,164,140	JPMorgan Chase Bank N.A.		1/11/2019		9,968
USD	1,461,465	AUD	2,067,000	Morgan Stanley Capital Services, Inc.		1/11/2019		5,317
USD	2,823,272	CAD	3,724,000	Goldman Sachs International		1/11/2019		94,792
USD	1,334,113	CAD	1,768,991	JPMorgan Chase Bank N.A.		1/11/2019		38,019
USD	397,024	CAD	532,000	Morgan Stanley Capital Services, Inc.		1/11/2019		7,241
USD	735,826	CAD	977,264	UBS AG		1/11/2019		19,810
USD	5,118	CHF	5,000	Goldman Sachs International		1/11/2019		27
USD	343,503	CLP	232,036,000	Barclays Bank PLC		1/07/2019		9,151
USD	2,615	CLP	1,813,000	Barclays Bank PLC		4/03/2019		1
USD	11,924	EUR	10,223	Brown Brothers Harriman		1/11/2019		203
USD	836,804	EUR	720,000	Citibank N.A.		1/11/2019		11,320
USD	1,243,860	EUR	1,084,206	Deutsche Bank AG		1/11/2019		813
USD	5,308,798	EUR	4,545,244	Goldman Sachs International		1/11/2019		97,651
USD	1,474,646	EUR	1,278,000	Morgan Stanley Capital Services, Inc.		1/11/2019		9,412
USD	1,622,419	GBP	1,266,026	State Street Bank Corp.		1/11/2019		8,105
USD	26,386	GBP	20,000	Barclays Bank PLC		1/11/2019		884
USD	199,963	GBP	155,000	Citibank N.A.		1/11/2019		2,322
USD	3,111,982	NOK	25,866,949	Goldman Sachs International		1/11/2019		119,256
USD	1,419,907	NOK	11,740,000	JPMorgan Chase Bank N.A.		1/11/2019		61,626
USD	1,434,871	NZD	2,104,000	Citibank N.A.		1/11/2019		22,477
USD	2,376,375	NZD	3,505,000	Goldman Sachs International		1/11/2019		23,504
USD	311,988	ZAR	4,487,000	UBS AG		1/11/2019		396
CLP	1,813,000	USD	2,612	Barclays Bank PLC		1/07/2019		0
EUR	3,250,657	USD	3,712,793	State Street Bank Corp.		1/11/2019		14,104
EUR	145,000	USD	165,680	Deutsche Bank AG		1/11/2019		564
EUR	4,131,227	USD	4,706,865	Goldman Sachs International		1/11/2019		29,609
INR	48,165,000	USD	677,255	JPMorgan Chase Bank N.A.		2/28/2019		8,354
JPY	542,680,725	USD	4,858,669	Brown Brothers Harriman		1/11/2019		94,168
JPY	25,088,000	USD	222,767	Deutsche Bank AG		1/11/2019		6,201
JPY	1,230,166,970	USD	11,060,514	JPMorgan Chase Bank N.A.		1/11/2019		166,743
JPY	54,703,000	USD	496,479	Morgan Stanley Capital Services, Inc.		1/11/2019		2,774
NOK	5,962,000	USD	681,200	Citibank N.A.		1/11/2019		8,585
NZD	4,951,876	USD	3,268,539	Citibank N.A.		1/11/2019		55,606

MFS Global Governments Portfolio

Portfolio of Investments – continued

Forward Foreign Currency Exchange Contracts - continued


Currency Purchased		Currency Sold		Counterparty	Settlement Date			Unrealized Appreciation (Depreciation)
Asset Derivatives – continued
NZD	2,127,000	USD	1,410,117	Goldman Sachs International		1/11/2019			$17,716
SEK	12,680,000	USD	1,412,470	Brown Brothers Harriman		1/11/2019			19,203
SEK	13,674,290	USD	1,540,138	JPMorgan Chase Bank N.A.		1/11/2019			3,798

									$1,030,004

Liability Derivatives
AUD	1,999,000	USD	1,451,686	State Street Bank Corp.		1/11/2019			$(43,443	)
AUD	3,379,838	USD	2,442,735	Citibank N.A.		1/11/2019			(61,726	)
AUD	2,607,986	USD	1,900,559	Deutsche Bank AG		1/11/2019			(63,301	)
AUD	994,000	USD	724,405	Goldman Sachs International		1/11/2019			(24,158	)
CAD	924,000	USD	714,547	Brown Brothers Harriman		1/11/2019			(37,556	)
CAD	868,603	USD	667,668	Merrill Lynch International		1/11/2019			(31,265	)
CLP	230,223,000	USD	342,314	Barclays Bank PLC		1/07/2019			(10,575	)
DKK	2,102,556	USD	329,426	Citibank N.A.		1/11/2019			(6,547	)
EUR	2,193,829	USD	2,517,213	Citibank N.A.		1/11/2019			(1,975	)
EUR	520,385	USD	599,438	Goldman Sachs International		1/11/2019			(2,814	)
EUR	1,203,649	USD	1,390,135	UBS AG		1/11/2019			(10,145	)
GBP	482,000	USD	615,980	State Street Bank Corp.		1/11/2019			(1,381	)
GBP	516,000	USD	674,248	Brown Brothers Harriman		1/11/2019			(16,295	)
GBP	120,000	USD	155,788	Citibank N.A.		1/11/2019			(2,775	)
GBP	1,274,976	USD	1,685,079	Deutsche Bank AG		1/11/2019			(59,353	)
GBP	111,836	USD	144,019	Morgan Stanley Capital Services, Inc.		1/11/2019			(1,417	)
GBP	534,000	USD	681,999	NatWest Markets PLC		1/11/2019			(1,094	)
MXN	74,144	USD	3,894	Goldman Sachs International		1/11/2019			(125	)
NOK	11,667,000	USD	1,426,738	Brown Brothers Harriman		1/11/2019			(76,902	)
NOK	23,429,184	USD	2,885,514	Goldman Sachs International		1/11/2019			(174,831	)
NZD	1,459,000	USD	1,003,125	Deutsche Bank AG		1/11/2019			(23,713	)
ZAR	4,685,000	USD	339,836	Citibank N.A.		1/11/2019			(14,495	)
USD	109,085	DKK	716,000	JPMorgan Chase Bank N.A.		1/11/2019			(867	)
USD	354,533	EUR	310,000	State Street Bank Corp.		1/11/2019			(884	)
USD	191,062	EUR	168,000	Brown Brothers Harriman		1/11/2019			(1,551	)
USD	448,324	EUR	395,000	Citibank N.A.		1/11/2019			(4,546	)
USD	478,244	EUR	418,000	Deutsche Bank AG		1/11/2019			(994	)
USD	774,985	EUR	676,811	JPMorgan Chase Bank N.A.		3/18/2019			(5,338	)
USD	94,986	GBP	75,000	Goldman Sachs International		1/11/2019	��		(646	)
USD	120,833	GBP	96,000	Morgan Stanley Capital Services, Inc.		1/11/2019			(1,577	)
USD	651,389	INR	47,696,000	JPMorgan Chase Bank N.A.		2/28/2019			(27,544	)
USD	2,096,296	JPY	236,410,000	State Street Bank Corp.		1/11/2019			(61,327	)
USD	1,123,101	JPY	126,634,000	Citibank N.A.		1/11/2019			(32,638	)
USD	1,492,451	JPY	168,010,000	Deutsche Bank AG		1/11/2019			(40,911	)
USD	138,236	JPY	15,529,000	Goldman Sachs International		1/11/2019			(3,492	)
USD	96,251	JPY	10,868,000	NatWest Markets PLC		1/11/2019			(2,937	)
USD	2,589,653	NZD	3,954,792	NatWest Markets PLC		1/11/2019			(65,159	)
USD	2,758,869	SEK	24,951,000	Deutsche Bank AG		1/11/2019			(58,298	)
USD	55,129	SEK	499,000	Goldman Sachs International		1/11/2019			(1,212	)
USD	18,303	ZAR	267,347	Deutsche Bank AG		1/11/2019			(262	)

									$(976,069	)

At December 31, 2018, the fund had cash collateral of $50,000 to cover any collateral or margin obligations for certain derivative contracts. Restricted cash and/or deposits with brokers in the Statement of Assets and Liabilities are comprised of cash collateral.

See Notes to Financial Statements

MFS Global Governments Portfolio

FINANCIAL STATEMENTS ^| STATEMENT OF ASSETS AND LIABILITIES

This statement represents your fund’s balance sheet, which details the assets and liabilities comprising the total value of the fund.


At 12/31/18

Assets
Investments in unaffiliated issuers, at value (identified cost, $132,549,856)	$134,501,558
Investments in affiliated issuers, at value (identified cost, $902,816)	902,742
Restricted cash for
Forward foreign currency exchange contracts	50,000
Receivables for
Forward foreign currency exchange contracts	1,030,004
Fund shares sold	2
Interest	968,268
Other assets	1,219
Total assets	$137,453,793

Liabilities
Payables for
Forward foreign currency exchange contracts	$976,069
Fund shares reacquired	572,266
Payable to affiliates
Investment adviser	11,295
Shareholder servicing costs	16
Distribution and/or service fees	23
Payable for independent Trustees’ compensation	1
Accrued expenses and other liabilities	60,531
Total liabilities	$1,620,201
Net assets	$135,833,592

Net assets consist of
Paid-in capital	$139,719,570
Total distributable earnings (loss)	(3,885,978	)
Net assets	$135,833,592
Shares of beneficial interest outstanding	13,134,874



	Net assets		Shares outstanding		Net asset value per share
Initial Class		$135,007,880		13,053,453		$10.34
Service Class		825,712		81,421		10.14

See Notes to Financial Statements

MFS Global Governments Portfolio

FINANCIAL STATEMENTS ^| STATEMENT OF OPERATIONS

This statement describes how much your fund earned in investment income and accrued in expenses. It also describes any gains and/or losses generated by fund operations.


Year ended 12/31/18

Net investment income (loss)
Income
Interest	$2,738,301
Dividends from affiliated issuers	91,241
Other	622
Total investment income	$2,830,164
Expenses
Management fee	$1,112,865
Distribution and/or service fees	2,289
Shareholder servicing costs	2,032
Administrative services fee	31,406
Independent Trustees’ compensation	3,614
Custodian fee	30,789
Shareholder communications	7,381
Audit and tax fees	72,197
Legal fees	1,293
Miscellaneous	26,538
Total expenses	$1,290,404
Reduction of expenses by investment adviser	(14,117	)
Net expenses	$1,276,287
Net investment income (loss)	$1,553,877

Realized and unrealized gain (loss)
Realized gain (loss) (identified cost basis)
Unaffiliated issuers	$1,173,119
Affiliated issuers	(297	)
Futures contracts	(130,063	)
Swap agreements	(16,412	)
Forward foreign currency exchange contracts	(224,812	)
Foreign currency	12,799
Net realized gain (loss)	$814,334
Change in unrealized appreciation or depreciation
Unaffiliated issuers	$(4,299,196	)
Affiliated issuers	407
Forward foreign currency exchange contracts	269,945
Translation of assets and liabilities in foreign currencies	(22,281	)
Net unrealized gain (loss)	$(4,051,125	)
Net realized and unrealized gain (loss)	$(3,236,791	)
Change in net assets from operations	$(1,682,914	)

See Notes to Financial Statements

MFS Global Governments Portfolio

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
	12/31/18			12/31/17
Change in net assets

From operations
Net investment income (loss)		$1,553,877			$1,256,274
Net realized gain (loss)		814,334			(1,355,824	)
Net unrealized gain (loss)		(4,051,125	)		11,272,878
Change in net assets from operations		$(1,682,914	)		$11,173,328
Total distributions to shareholders		$(1,441,037	)		$—
Change in net assets from fund share transactions		$(21,728,577	)		$(14,270,685	)
Total change in net assets		$(24,852,528	)		$(3,097,357	)

Net assets
At beginning of period		160,686,120			163,783,477
At end of period (b)		$135,833,592			$160,686,120

(b)	Parenthetical disclosure of undistributed net investment income is no longer required. See Note 2. For the year ended December 31, 2017, end of period net assets included undistributed net investment income of $1,233,221.

See Notes to Financial Statements

MFS Global Governments Portfolio

FINANCIAL STATEMENTS ^| FINANCIAL HIGHLIGHTS


Initial Class	Year ended

	12/31/18			12/31/17		12/31/16			12/31/15			12/31/14

Net asset value, beginning of period		$10.56			$9.87		$9.84			$10.47			$10.45

Income (loss) from investment operations
Net investment income (loss) (d)		$0.11			$0.08		$0.07	(c)		$0.09			$0.11
Net realized and unrealized gain (loss)		(0.23	)		0.61		(0.04	)(g)		(0.47	)		(0.03	)
Total from investment operations		$(0.12	)		$0.69		$0.03			$(0.38	)		$0.08

Less distributions declared to shareholders
From net investment income		$(0.10	)		$—		$—			$(0.25	)		$(0.06	)
Net asset value, end of period (x)		$10.34			$10.56		$9.87			$9.84			$10.47
Total return (%) (k)(r)(s)(x)		(1.11	)		6.99		0.30	(c)		(3.66	)		0.73

Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)		0.87			0.86		0.83	(c)		0.85			0.84
Expenses after expense reductions (f)		0.86			0.85		0.82	(c)		0.84			0.83
Net investment income (loss)		1.05			0.77		0.66	(c)		0.92			1.07
Portfolio turnover		79			67		75			94			31
Net assets at end of period (000 omitted)		$135,008			$159,652		$162,211			$182,978			$209,945

Service Class	Year ended

	12/31/18			12/31/17		12/31/16			12/31/15			12/31/14

Net asset value, beginning of period		$10.34			$9.69		$9.69			$10.31			$10.28

Income (loss) from investment operations
Net investment income (loss) (d)		$0.08			$0.05		$0.04	(c)		$0.07			$0.09
Net realized and unrealized gain (loss)		(0.22	)		0.60		(0.04	)(g)		(0.46	)		(0.04	)
Total from investment operations		$(0.14	)		$0.65		$0.00	(w)		$(0.39	)		$0.05

Less distributions declared to shareholders
From net investment income		$(0.06	)		$—		$—			$(0.23	)		$(0.02	)
Net asset value, end of period (x)		$10.14			$10.34		$9.69			$9.69			$10.31
Total return (%) (k)(r)(s)(x)		(1.32	)		6.71		0.00	(c)(w)		(3.86	)		0.49

Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)		1.12			1.11		1.08	(c)		1.10			1.09
Expenses after expense reductions (f)		1.11			1.10		1.07	(c)		1.09			1.08
Net investment income (loss)		0.80			0.52		0.41	(c)		0.67			0.81
Portfolio turnover		79			67		75			94			31
Net assets at end of period (000 omitted)		$826			$1,034		$1,572			$1,586			$1,809

See Notes to Financial Statements

MFS Global Governments Portfolio

Financial Highlights – continued

(c)

Amount reflects aone-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher.

(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 varies from 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.

(k)

The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown.

(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.

(w)

Per share amount was less than $0.01 and total return or ratio was less than 0.01%, as applicable.

(x)

The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes.

See Notes to Financial Statements

MFS Global Governments Portfolio

NOTES TO FINANCIAL STATEMENTS

(1)

Business and Organization

MFS Global Governments Portfolio (the fund) is anon-diversified series of MFS Variable Insurance Trust II (the trust). The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as anopen-end management investment company. The shareholders of each series of the trust are separate accounts of insurance companies, which offer variable annuity and/or life insurance products, and qualified retirement and pension plans.

(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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated subsequent events occurring after the date of the fund’s Statement of Assets and Liabilities through the date that the financial statements were issued. The fund invests in foreign securities. Investments in foreign securities are vulnerable to the effects of changes in the relative values of the local currency and the U.S. dollar and to the effects of changes in each country’s market, economic, industrial, political, regulatory, geopolitical, and other conditions.

Investment Valuations– Debt instruments and floating rate loans, 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 may be valued at amortized cost, which approximates market value. Futures contracts are generally valued at last posted settlement price on their primary exchange as provided by a third-party pricing service. Futures contracts for which there were no trades that day for a particular position are generally valued at the closing bid quotation on their primary exchange as provided by a third-party pricing service. Forward foreign currency exchange 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. Swap agreements are generally valued at valuations provided by a third-party pricing service, which for cleared swaps includes an evaluation of any trading activity at the clearinghouses.Open-end investment companies are generally valued at net asset value per share. Securities and other

MFS Global Governments Portfolio

Notes to Financial Statements – continued

assets generally valued on the basis of information from a third-party pricing service may also be valued at a broker/dealer bid quotation. In determining values, third-party pricing services can utilize both transaction data and market information such as 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.

Various inputs are used in determining the value of the fund’s assets or liabilities. These inputs are categorized into three broad levels. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fund’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted 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, such as forward foreign currency exchange contracts. The following is a summary of the levels used as of December 31, 2018 in valuing the fund’s assets or liabilities:


Financial Instruments	Level 1		Level 2			Level 3		Total
U.S. Treasury Bonds & U.S. Government Agency & Equivalents		$—		$65,149,718			$—		$65,149,718
Non-U.S. Sovereign Debt		—		68,537,394			—		68,537,394
Residential Mortgage-Backed Securities		—		814,443			—		814,443
Commercial Mortgage-Backed Securities		—		3			—		3
Mutual Funds		902,742		—			—		902,742
Total		$902,742		$134,501,558			$—		$135,404,300

Other Financial Instruments
Forward Foreign Currency Exchange Contracts – Assets		$—		$1,030,004			$—		$1,030,004
Forward Foreign Currency Exchange Contracts – Liabilities		—		(976,069	)		—		(976,069	)

For further information regarding security characteristics, see the Portfolio of Investments.

MFS Global Governments Portfolio

Notes to Financial Statements – continued

The derivative instruments used by the fund during the period were futures contracts, forward foreign currency exchange contracts, and swap agreements. Depending on the type of derivative, the fund may exit a derivative position by entering into an offsetting transaction with a counterparty or exchange, negotiating an agreement with the derivative counterparty, or novating the position to a third party. The fund’s period end derivatives, as presented in the Portfolio of Investments and the associated Derivative Contract tables, generally are indicative of the volume of its derivative activity during the period.

The following table presents, by major type of derivative contract, the fair value, on a gross basis, of the asset and liability components of derivatives held by the fund at December 31, 2018 as reported in the Statement of Assets and Liabilities:


		Fair Value
Risk	Derivative Contracts	Asset Derivatives		Liability Derivatives
Foreign Exchange	Forward Foreign Currency Exchange Contracts		$1,030,004		$(976,069	)


Risk	Futures Contracts			Swap Agreements			Forward Foreign Currency Exchange Contracts
Interest Rate		$(130,063	)		$(16,412	)		$—
Foreign Exchange		—			—			(224,812	)
Total		$(130,063	)		$(16,412	)		$(224,812	)

Risk

Forward Foreign

Currency
Exchange

Contracts

Foreign Exchange

$269,945

MFS Global Governments Portfolio

Notes to Financial Statements – continued

Futures Contracts – The fund entered into futures contracts which may be used to hedge against or obtain broad market exposure, interest rate exposure, currency exposure, or to manage duration. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date.

Upon entering into a futures contract, the fund is required to deposit with the broker, either in cash or securities, an initial margin in an amount equal to a specified percentage of the notional amount of the contract. Subsequent payments (variation margin) are made or received by the fund each day, depending on the daily fluctuations in the value of the contract, and are recorded for financial statement purposes as unrealized gain or loss by the fund until the contract is closed or expires at which point the gain or loss on futures contracts is realized.

The fund bears the risk of interest rates, exchange rates or securities prices moving unexpectedly, in which case, the fund may not achieve the anticipated benefits of the futures contracts and may realize a loss. While futures contracts may present less counterparty risk to the fund since the contracts are exchange traded and the exchange’s clearinghouse guarantees payments to the broker, there is still counterparty credit risk due to the insolvency of the broker. The fund’s maximum risk of loss due to counterparty credit risk is equal to the margin posted by the fund to the broker plus any gains or minus any losses on the outstanding futures contracts.

Forward Foreign Currency Exchange Contracts– The fund entered into forward foreign currency exchange contracts for the purchase or sale of a specific foreign currency at a fixed price on a future date. These contracts may be used to hedge the fund’s currency risk or fornon-hedging purposes. For hedging purposes, the fund may enter into contracts to deliver or receive foreign currency that the fund will receive from or use in its normal investment activities. The fund may also use contracts to hedge against declines in the value of foreign currency denominated securities due to unfavorable exchange rate movements. Fornon-hedging purposes, the fund may enter into contracts with the intent of changing the relative exposure of the fund’s portfolio of securities to different currencies to take advantage of anticipated exchange rate changes.

Forward foreign currency exchange contracts are adjusted by the daily exchange rate of the underlying currency and any unrealized gains or losses are recorded as a receivable or payable for forward foreign currency exchange contracts until the contract settlement date. On contract settlement date, any gain or loss on the contract is recorded as realized gains or losses on forward foreign currency exchange contracts.

Risks may arise upon entering into these contracts from unanticipated movements in the value of the contract and from the potential inability of counterparties to meet the terms of their contracts. Generally, the fund’s maximum risk due to counterparty credit risk is the unrealized gain on the contract due to the use of Continuous Linked Settlement, a multicurrency cash settlement system for the centralized settlement of foreign transactions. This risk is mitigated in cases where there is an ISDA Master Agreement between the fund and the counterparty providing for netting as described above and, where applicable, by the posting of collateral by the counterparty to the fund to cover the fund’s exposure to the counterparty under such ISDA Master Agreement.

Swap Agreements– During the period the fund entered into swap agreements. Swap agreements generally involve a periodic exchange of cash payments on a net basis, at specified intervals or upon the occurrence of specified events, between the fund and a counterparty. Certain swap agreements may be entered into as a bilateral contract (“uncleared swaps”) while others are required to be centrally cleared (“cleared swaps”). In a cleared swap transaction, the ultimate counterparty to the transaction is a clearinghouse (the “clearinghouse”). The contract is transferred and accepted by the clearinghouse immediately following execution of the swap contract with an executing broker. Thereafter, throughout the term of the cleared swap, the fund interfaces indirectly with the clearinghouse through a clearing broker and has counterparty risk to the clearing broker as well.

Amounts paid or received at the inception of uncleared swap agreements are presented parenthetically as premiums paid or received and reflected in the value of the uncleared swap in the Statement of Assets and Liabilities. Those premiums are amortized using the effective interest method over the term of the agreement as realized gain or loss on swap agreements in the Statement of Operations. The value of the uncleared swap agreements, which is adjusted daily and includes any related interest accruals to be paid or received by the fund, is recorded in the Statement of Assets and Liabilities as “Uncleared swaps, at value”. The daily change in the value of uncleared swaps, including any related interest accruals to be paid or received, is recorded as unrealized appreciation or depreciation on swap agreements in the Statement of Operations. For cleared swaps, the daily change in valuation is recorded as a receivable or payable for variation margin in the Statement of Assets and Liabilities and reflected in unrealized appreciation or depreciation on swap agreements in the Statement of Operations. The periodic exchange of net cash payments, at specified intervals or upon the occurrence of specified events as stipulated by the agreement, is recorded as realized gain or loss on swap agreements in the Statement of Operations. A liquidation payment received or made upon early termination is recorded as a realized gain or loss on swap agreements in the Statement of Operations.

MFS Global Governments Portfolio

Notes to Financial Statements – continued

agreements are limited to only highly-rated counterparties. Risk is further reduced by having an ISDA Master Agreement between the fund and the counterparty providing for netting as described above and, where applicable, by the posting of collateral by the counterparty to the fund to cover the fund’s exposure to the counterparty under such ISDA Master Agreement. The fund’s counterparty risk due to cleared swaps is mitigated by the fact that the clearinghouse is the true counterparty to the transaction and the regulatory requirement safeguards in the event of a clearing broker bankruptcy.

The fund entered into inflation swap agreements in order to manage its exposure to inflation risk. Inflation swap agreements involve the periodic exchange of cash flows, between the fund and a counterparty, based on the difference between two rates applied to a notional principal amount. The two rates exchanged are generally a fixed rate and a floating rate based on an inflation index.

Book/tax differences primarily relate to amortization and accretion of debt securities, wash sale loss deferrals, and straddle loss deferrals.

The tax character of distributions declared to shareholders for the last two fiscal years is as follows:


	Year ended 12/31/18		Year ended 12/31/17
Ordinary income (including any short-term capital gains)		$1,441,037		$—

The federal tax cost and the tax basis components of distributable earnings were as follows:


As of 12/31/18

Cost of investments	$135,483,355
Gross appreciation	2,234,229
Gross depreciation	(2,259,349	)
Net unrealized appreciation (depreciation)	$(25,120	)

Undistributed ordinary income	3,198,236
Capital loss carryforwards	(7,056,379	)
Other temporary differences	(2,715	)

MFS Global Governments Portfolio

Notes to Financial Statements – continued


Short-Term	$(4,014,241	)
Long-Term	(3,042,138	)
Total	$(7,056,379	)


	From net investment income

	Year ended 12/31/18		Year ended 12/31/17
Initial Class		$1,435,695		$—
Service Class		5,342		—
Total		$1,441,037		$—

(3)

Transactions with Affiliates


Up to $300 million			0.75%
In excess of $300 million and up to $1 billion			0.675%
In excess of $1 billion			0.625%

MFS has agreed in writing to reduce its management fee by a specified amount if certain MFS mutual fund assets exceed thresholds agreed to by MFS and the fund’s Board of Trustees. For the year ended December 31, 2018, this management fee reduction amounted to $14,117, which is included in the reduction of total expenses in the Statement of Operations. The management fee incurred for the year ended December 31, 2018 was equivalent to an annual effective rate of 0.74% of the fund’s average daily net assets.

The investment adviser has agreed in writing to pay a portion of the fund’s total annual operating expenses, excluding interest, taxes, extraordinary expenses, brokerage and transaction costs, and investment-related expenses, such that total annual operating expenses do not exceed 1.00% of average daily net assets for the Initial Class shares and 1.25% of average daily net assets for the Service Class shares. This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until April 30, 2020. For the year ended December 31, 2018, the fund’s actual operating expenses did not exceed the limit and therefore, the investment adviser did not pay any portion of the fund’s expenses related to this agreement.

Shareholder Servicing Agent– MFS Service Center, Inc. (MFSC), a wholly-owned subsidiary of MFS, receives a fee from the fund for its services as shareholder servicing agent. For the year ended December 31, 2018, the fee was $1,872, which equated to 0.0013% annually of the fund’s average daily net assets. MFSC also receives payment from the fund forout-of-pocket expenses paid by MFSC on behalf of the fund. For the year ended December 31, 2018, these costs amounted to $160.

MFS Global Governments Portfolio

Notes to Financial Statements – continued

fund is charged an annual fixed amount of $17,500 plus a fee based on average daily net assets. The administrative services fee incurred for the year ended December 31, 2018 was equivalent to an annual effective rate of 0.0212% of the fund’s average daily net assets.

Other– This fund and certain other funds managed by MFS (the funds) have entered into a service agreement (the ISO Agreement) which provides for payment of fees solely by the funds to Tarantino LLC in return for the provision of services of an Independent Senior Officer (ISO) for the funds. Frank L. Tarantino serves as the ISO and is an officer of the funds and the sole member of Tarantino LLC. The funds can terminate the ISO Agreement with Tarantino LLC at any time under the terms of the ISO Agreement. For the year ended December 31, 2018, the fee paid by the fund under this agreement was $248 and is included in “Miscellaneous” expense in the Statement of Operations. MFS has agreed to bear all expenses associated with office space, other administrative support, and supplies provided to the ISO.

(4)

Portfolio Securities

For the year ended December 31, 2018, purchases and sales of investments, other than short-term obligations, were as follows:


	Purchases		Sales
U.S. Government securities		$41,513,087		$30,725,877
Non-U.S. Government securities		$70,904,210		$90,558,713

(5)

Shares of Beneficial Interest

The 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:


	Year ended 12/31/18						Year ended 12/31/17

	Shares			Amount			Shares			Amount
Shares sold
Initial Class		70,831			$740,148			218,274			$2,232,217
Service Class		13,882			144,462			16,354			161,407
		84,713			$884,610			234,628			$2,393,624

Shares issued to shareholders in reinvestment of distributions
Initial Class		140,068			$1,435,695			—			$—
Service Class		531			5,342			—			—
		140,599			$1,441,037			—			$—

Shares reacquired
Initial Class		(2,278,906	)		$(23,714,753	)		(1,530,744	)		$(15,870,105	)
Service Class		(32,954	)		(339,471	)		(78,628	)		(794,204	)
		(2,311,860	)		$(24,054,224	)		(1,609,372	)		$(16,664,309	)

Net change
Initial Class		(2,068,007	)		$(21,538,910	)		(1,312,470	)		$(13,637,888	)
Service Class		(18,541	)		(189,667	)		(62,274	)		(632,797	)
		(2,086,548	)		$(21,728,577	)		(1,374,744	)		$(14,270,685	)

The fund is one of several mutual funds in which certain MFS funds may invest. The MFS funds do not invest in the underlying funds for the purpose of exercising management or control. At the end of the period, the MFS Moderate Allocation Portfolio, the MFS Conservative Allocation Portfolio, and the MFS Growth Allocation Portfolio were the owners of record of approximately 53%, 27%, and 10%, respectively, of the value of outstanding voting shares of the fund.

(6)

Line of Credit

MFS Global Governments Portfolio

Notes to Financial Statements – continued

have established unsecured uncommitted borrowing arrangements with certain banks for temporary financing needs. Interest is charged to each fund, based on its borrowings, at a rate equal to the Overnight Bank Funding rate plus an agreed upon spread. For the year ended December 31, 2018, the fund’s commitment fee and interest expense were $860 and $0, respectively, and are included in “Miscellaneous” expense in the Statement of Operations.

(7)

Investments in Affiliated Issuers


Affiliated Issuers		Beginning Shares/Par Amount		Acquisitions Shares/Par Amount		Dispositions Shares/Par Amount			Ending Shares/Par Amount

MFS Institutional Money Market Portfolio			11,035,474		75,575,371		(85,708,013	)		902,832

Affiliated Issuers	Realized Gain (Loss)	Change in Unrealized Appreciation/ Depreciation		Capital Gain Distributions		Dividend Income			Ending Value

MFS Institutional Money Market Portfolio	$(297)		$407		$—		$91,241			$902,742

MFS Global Governments Portfolio

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees of MFS Variable Insurance Trust II and the Shareholders of

MFS Global Governments Portfolio:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities of MFS Global Governments Portfolio (the “Fund”), including the portfolio of investments, as of December 31, 2018, the related statement 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of December 31, 2018, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.

DELOITTE & TOUCHE LLP

Boston, Massachusetts

February 15, 2019

We have served as the auditor of one or more of the MFS investment companies since 1924.

MFS Global Governments Portfolio

TRUSTEES AND OFFICERS – IDENTIFICATION AND BACKGROUND


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds overseen by the Trustee	Principal Occupations During the Past Five Years	Other Directorships During the Past Five Years (j)
INTERESTED TRUSTEES
Robert J. Manning (k) (age 55)	Trustee	February 2004	135	Massachusetts Financial Services Company, Executive Chairman (since January 2017); Director; Chairman of the Board; Chief Executive Officer (until 2015);Co-Chief Executive Officer(2015-2016)	N/A

Robin A. Stelmach (k) (age 57)	Trustee	January 2014	135	Massachusetts Financial Services Company, Vice Chair (since January 2017); Chief Operating Officer and Executive Vice President (until January 2017)	N/A

INDEPENDENT TRUSTEES
John P. Kavanaugh (age 64)	Trustee and Chair of Trustees	January 2009	135	Private investor	N/A

Steven E. Buller (age 67)	Trustee	February 2014	135	Financial Accounting Standards Advisory Council, Chairman(2014-2015); Public Company Accounting Oversight Board, Standing Advisory Group, Member (until 2014); BlackRock, Inc. (investment management), Managing Director (until 2014), BlackRock Finco UK (investment management), Director (until 2014)	N/A

John A. Caroselli (age 64)	Trustee	March 2017	135	JC Global Advisors, LLC (management consulting), President (since 2015); First Capital Corporation (commercial finance), Executive Vice President (until 2015)	N/A

Maureen R. Goldfarb (age 63)	Trustee	January 2009	135	Private investor	N/A

Michael Hegarty (age 74)	Trustee	December 2004	135	Private investor	Rouse Properties Inc., Director (until 2016); Capmark Financial Group Inc., Director (until 2015)

Peter D. Jones (age 63)	Trustee	January 2019	135	Franklin Templeton Distributors, Inc. (investment management), President (until 2015); Franklin Templeton Institutional, LLC (investment management), Chairman (until 2015)	N/A

James W. Kilman, Jr. (age 57)	Trustee	January 2019	135	KielStrand Capital LLC (family office and merchant bank), Chief Executive Officer (since 2016); Morgan Stanley & Co. (financial services), Vice Chairman of Investment Banking,Co-Head of Diversified Financials Coverage – Financial Institutions Investment Banking Group (until 2016)	alpha-En Corporation, Director (since 2016)

MFS Global Governments Portfolio

Trustees and Officers – continued


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds overseen by the Trustee	Principal Occupations During the Past Five Years	Other Directorships During the Past Five Years (j)
Clarence Otis, Jr. (age 62)	Trustee	March 2017	135	Darden Restaurants, Inc., Chief Executive Officer (until 2014)	VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director; Federal Reserve Bank of Atlanta, Director (until 2015)

Maryanne L. Roepke (age 62)	Trustee	May 2014	135	American Century Investments (investment management), Senior Vice President and Chief Compliance Officer (until 2014)	N/A

Laurie J. Thomsen (age 61)	Trustee	March 2005	135	Private investor	The Travelers Companies, Director; Dycom Industries, Inc., Director (since 2015)


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds for which the Person is an Officer	Principal Occupations During the Past Five Years
OFFICERS
Christopher R. Bohane (k) (age 45)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Vice President and Assistant General Counsel

Kino Clark (k) (age 50)	Assistant Treasurer	January 2012	135	Massachusetts Financial Services Company, Vice President

John W. Clark, Jr. (k) (age 51)	Assistant Treasurer	April 2017	135	Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head – Treasurer’s Office (until February 2017)

Thomas H. Connors (k) (age 59)	Assistant Secretary and Assistant Clerk	September 2012	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Ethan D. Corey (k) (age 55)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel

David L. DiLorenzo (k) (age 50)	President	July 2005	135	Massachusetts Financial Services Company, Senior Vice President

Heidi W. Hardin (k) (age 51)	Secretary and Clerk	April 2017	135	Massachusetts Financial Services Company, Executive Vice President and General Counsel (since March 2017); Harris Associates (investment management), General Counsel (from September 2015 to January 2017); Janus Capital Management LLC (investment management), Senior Vice President and General Counsel (until September 2015)

Brian E. Langenfeld (k) (age 45)	Assistant Secretary and Assistant Clerk	June 2006	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Amanda S. Mooradian (k) (age 39)	Assistant Secretary and Assistant Clerk	September 2018	135	Massachusetts Financial Services Company, Assistant Vice President and Counsel

Susan A. Pereira (k) (age 48)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Kasey L. Phillips (k) (age 48)	Assistant Treasurer	September 2012	135	Massachusetts Financial Services Company, Vice President

Matthew A. Stowe (k) (age 44)	Assistant Secretary and Assistant Clerk	October 2014	135	Massachusetts Financial Services Company, Vice President and Assistant General Counsel

MFS Global Governments Portfolio

Trustees and Officers – continued


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds for which the Person is an Officer	Principal Occupations During the Past Five Years
Frank L. Tarantino (age 74)	Independent Senior Officer	June 2004	135	Tarantino LLC (provider of compliance services), Principal

Richard S. Weitzel (k) (age 48)	Assistant Secretary and Assistant Clerk	October 2007	135	Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel

Martin J. Wolin (k) (age 51)	Chief Compliance Officer	July 2015	135	Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer (since July 2015); Mercer (financial service provider), Chief Risk and Compliance Officer, North America and Latin America (until June 2015)

James O. Yost (k) (age 58)	Treasurer	September 1990	135	Massachusetts Financial Services Company, Senior Vice President

(h)

(j)	Directorships or trusteeships of companies required to report to the Securities and Exchange Commission (i.e., “public companies”).

(k)

Messrs. Buller, Hegarty, Kilman and Otis and Ms. Roepke are members of the Trust’s Audit Committee.

Each of the Interested Trustees and certain Officers hold comparable officer positions with certain affiliates of MFS.

The Statement of Additional Information for a Fund includes further information about the Trustees and is available without charge upon request by calling1-800-225-2606.


Investment Adviser Massachusetts Financial Services Company 111 Huntington Avenue Boston, MA 02199-7618		Custodian State Street Bank and Trust Company 1 Lincoln Street Boston, MA 02111-2900

Distributor MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618		Independent Registered Public Accounting Firm Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116

Portfolio Manager(s) Matt Ryan Erik Weisman

MFS Global Governments Portfolio

BOARD REVIEW OF INVESTMENT ADVISORY AGREEMENT

Based on information provided by Broadridge and MFS, the Trustees reviewed the Fund’s total return investment performance as well as the Broadridge performance universe over various time periods. The Trustees placed particular emphasis on the total return performance of the Fund’s Initial Class shares in comparison to the performance of funds in its Broadridge performance universe over the three-year period ended December 31, 2017, which the Trustees believed was a long enough period to reflect differing market conditions. The total return performance of the Fund’s Initial Class shares was in the 4th quintile relative to the other funds in the universe for this three-year period (the 1st quintile being the best performers and the 5th quintile being the worst performers). The total return performance of the Fund’s Initial Class shares was in the 2nd quintile for theone-year period and the 5th quintile for the five-year period ended December 31, 2017 relative to the Broadridge performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.

The Trustees expressed continued concern to MFS about the substandard investment performance of the Fund. In the course of their deliberations, the Trustees took into account information provided by MFS in connection with the contract review meetings, as well as during investment review meetings conducted with portfolio management personnel during the course of the year, as to MFS’ efforts to improve the Fund’s performance. In addition, the Trustees requested that they receive a separate update on the Fund’s performance at each of their regular meetings. After reviewing these and related factors, the Trustees concluded, within the context

MFS Global Governments Portfolio

Board Review of Investment Advisory Agreement – continued

of their overall conclusions regarding the investment advisory agreement, that MFS’ responses and efforts and plans to improve investment performance were sufficient to support approval of the continuance of the investment advisory agreement for an additionalone-year period, but that they would continue to closely monitor the performance of the Fund.

In assessing the reasonableness of the Fund’s advisory fee, the Trustees considered, among other information, the Fund’s advisory fee and the total expense ratio of the Fund’s Initial Class shares as a percentage of average daily net assets and the advisory fee and total expense ratios of peer groups of funds based on information provided by Broadridge. The Trustees considered that MFS currently observes an expense limitation for the Fund, which may not be changed without the Trustees’ approval. The Trustees also considered that, according to the data provided by Broadridge (which takes into account any fee reductions or expense limitations that were in effect during the Fund’s last fiscal year), the Fund’s effective advisory fee rate was higher than the Broadridge expense group median and the Fund’s total expense ratio was approximately at the Broadridge expense group median.

The Trustees also considered whether the Fund may benefit from any economies of scale in the management of the Fund in the event of growth in assets of the Fund and/or growth in assets of the MFS Funds as a whole. They noted that the Fund’s advisory fee rate schedule is subject to contractual breakpoints that reduce the Fund’s advisory fee rate on average daily net assets over $300 million and $1 billion. The Trustees also noted that MFS has agreed in writing to waive a portion of the management fees of certain MFS Funds, including the Fund, if the total combined assets of certain funds within the MFS Funds’ complex increase above agreed upon thresholds (the “group fee waiver”), enabling the Fund’s shareholders to share in the benefits from any economies of scale at the complex level. The group fee waiver is reviewed and renewed annually between the Board and MFS. The Trustees concluded that the breakpoints and the group fee waiver were sufficient to allow the Fund to benefit from economies of scale as its assets and overall complex assets grow.

MFS Global Governments Portfolio

PROXY VOTING POLICIES AND INFORMATION

QUARTERLY PORTFOLIO DISCLOSURE

FURTHER INFORMATION

INFORMATION ABOUT FUND CONTRACTS AND LEGAL CLAIMS

rev. 3/16



FACTS		WHAT DOES MFS DO WITH YOUR PERSONAL INFORMATION?


Why?		Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.

What?

The types of personal information we collect and share depend on the product or service you have with us. This information can include:

• Social Security number and account balances

• Account transactions and transaction history

• Checking account information and wire transfer instructions

When you areno longer our customer, we continue to share your information as described in this notice.


How?		All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons MFS chooses to share; and whether you can limit this sharing.


Reasons we can share your personal information	Does MFS share?	Can you limit this sharing?
For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes – to offer our products and services to you	No	We don’t share
For joint marketing with other financial companies	No	We don’t share
For our affiliates’ everyday business purposes – information about your transactions and experiences	No	We don’t share
For our affiliates’ everyday business purposes – information about your creditworthiness	No	We don’t share
For nonaffiliates to market to you	No	We don’t share



Questions?		Call800-225-2606 or go tomfs.com.


Page 2


Who we are
Who is providing this notice?		MFS Funds, MFS Investment Management, MFS Institutional Advisors, Inc., and MFS Heritage Trust Company.


What we do
How does MFS protect my personal information?		To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include procedural, electronic, and physical safeguards for the protection of the personal information we collect about you.
How does MFS collect my personal information?		We collect your personal information, for example, when you • open an account or provide account information • direct us to buy securities or direct us to sell your securities • make a wire transfer We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can’t I limit all sharing?		Federal law gives you the right to limit only • sharing for affiliates’ everyday business purposes – information about your creditworthiness • affiliates from using your information to market to you • sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing.


Definitions
Affiliates		Companies related by common ownership or control. They can be financial and nonfinancial companies. • MFS does not share personal information with affiliates, except for everyday business purposes as described on page one of this notice.
Nonaffiliates		Companies not related by common ownership or control. They can be financial and nonfinancial companies. • MFS does not share with nonaffiliates so they can market to you.
Joint marketing		A formal agreement between nonaffiliated financial companies that together market financial products or services to you. • MFS doesn’t jointly market.


Other important information
If you own an MFS product or receive an MFS service in the name of a third party such as a bank or broker-dealer, their privacy policy may apply to you instead of ours.

LOGO

Annual Report

December 31, 2018

LOGO

MFS^® Global Growth Portfolio

LOGO

MFS^® Variable Insurance Trust II

WGO-ANN

MFS® Global Growth Portfolio

CONTENTS

The report is prepared for the general information of contract owners. 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 OR CREDIT UNION GUARANTEE• NOT A DEPOSIT• NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY OR NCUA/NCUSIF

MFS Global Growth Portfolio

LETTER FROM THE EXECUTIVE CHAIRMAN

LOGO

Dear Contract Owners:

Respectfully,

LOGO

Robert J. Manning

Executive Chairman

MFS Investment Management

February 15, 2019

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

MFS Global Growth Portfolio

PORTFOLIO COMPOSITION

Portfolio structure

LOGO


Top ten holdings
Alphabet, Inc., “A”			3.8%
Microsoft Corp.			2.9%
Taiwan Semiconductor Manufacturing Co. Ltd., ADR			2.1%
Nestle S.A.			2.0%
Accenture PLC, “A”			2.0%
Aon PLC			2.0%
Experian PLC			1.9%
Bayer AG			1.9%
LVMH Moet Hennessy Louis Vuitton SE			1.8%
Comcast Corp., “A”			1.8%

GICS equity sectors
Information Technology			21.1%
Consumer Discretionary			14.8%
Industrials			13.9%
Consumer Staples			13.2%
Health Care			10.3%
Communication Services			9.2%
Financials			8.8%
Materials			7.7%
Energy			0.4%


Issuer country weightings (x)
United States			57.5%
United Kingdom			7.9%
Switzerland			5.7%
France			5.3%
Japan			4.5%
Germany			4.4%
China			2.3%
Taiwan			2.0%
India			2.0%
Other Countries			8.4%

Currency exposure weightings (y)
United States Dollar			58.5%
Euro			10.7%
British Pound Sterling			9.3%
Swiss Franc			5.7%
Japanese Yen			4.5%
Chinese Renminbi			2.3%
Taiwan Dollar			2.0%
Indian Rupee			2.0%
South Korean Won			1.8%
Other Currencies			3.2%

(x)	Represents the portfolio’s exposure to issuer countries as a percentage of a portfolio’s net assets. For purposes of this presentation, United States includes Cash & Cash Equivalents.

(y)	Represents the portfolio’s exposure to a particular currency as a percentage of a portfolio’s net assets. For purposes of this presentation, United States Dollar includes Cash & Cash Equivalents.

Percentages are based on net assets as of December 31, 2018.

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

MFS Global Growth Portfolio

MANAGEMENT REVIEW

Summary of Results

For the twelve months ended December 31, 2018, Initial Class shares of the MFS Global Growth Portfolio (“fund”) provided a total return of –4.83%, while Service Class shares of the fund provided a total return of –5.06%. These returns compare with a return of –8.13% over the same period for the fund’s benchmark, the MSCI All Country World Growth Index (net div).

Market Environment

Contributors to Performance

Security selection in both thematerialsandindustrialssectors contributed to performance relative to the MSCI All Country World Growth Index. Within thematerials sector, the timing of the fund’s ownership in shares of paint and coating manufacturer Kansai Paint Co. (Japan) bolstered relative returns. Within theindustrialssector, overweight positions in analytics and risk assessment services provider Verisk Analytics and credit risk services provider Experian (United Kingdom) supported relative results. The stock price of Verisk Analytics advanced as the company reported improved revenue growth and a significant benefit from US tax reform.

Security selection in theinformation technologysector also aided relative returns. However, there were no stocks within this sector that were among the fund’s top relative contributors over the reporting period.

Elsewhere, the timing of the fund’s ownership in shares of medical device company Abbott Laboratories benefited relative performance. Shares of Abbott Laboratories benefited from solid organic growth results, owing to strong performance in the company’s Diabetes Care, Diagnostics, Nutrition and Medical Devices segments. Additionally, overweight positions in athletic shoes and apparel manufacturer NIKE, retail chain operator TJX Cos., coffee and tea company Starbucks, life sciences supply company Thermo Fisher Scientific and insurance broker Aon supported relative results. Not owning shares of social networking firm Facebook further contributed to relative returns.

Detractors from Performance

Security selection and, to a lesser extent, an overweight position in theconsumer staplessector detracted from relative performance. Within this sector, the fund’s holdings of beauty products company Coty (b)(h), and overweight positions in drugstore retailer Sundrug Co. (Japan) and beverage manufacturer Ambev (Brazil) weakened relative returns. The stock price of Coty declined due to a difficult retail environment, along with disruptions in its supply chain. The share price also came under pressure after the firm providedfiscal-year 2019 earnings per share guidance that was below consensus estimates.

Other top relative detractors during the period included not owning shares ofe-commerce and cloud services giant Amazon.com and the timing of the fund’s ownership in shares of pharmaceutical company Bayer (Germany). The stock price of Amazon.com appreciated during the period as the company delivered solid earnings results, driven by strong performance in its Amazon Web

MFS Global Growth Portfolio

Management Review – continued

Services (AWS), Cloud services and advertising segments.In addition, the fund’s overweight positions in international betting and gaming company Paddy Power Betfair (Ireland), private banking services provider Julius Baer Group (Switzerland), dollar store operator Dollarama, Chinese-language internet search provider Baidu (China) and video game maker Electronic Arts negatively impacted relative results.

Respectfully,

Portfolio Manager(s)

David Antonelli, Jeffrey Constantino, and Joseph Skorski

Note to Shareholders: Effective May 1, 2018, Joseph Skorski became a Portfolio Manager of the Fund.

(b)	Security is not a benchmark constituent.

(h)	Security was not held in the portfolio at period end.

MFS Global Growth Portfolio

PERFORMANCE SUMMARY THROUGH 12/31/18

Growth of a Hypothetical $10,000 Investment

LOGO

Total Returns through 12/31/18

Average annual total returns


	Share Class	Class Inception Date	1-yr	5-yr	10-yr
	Initial Class	11/16/93	(4.83)%	6.50%	11.27%
	Service Class	8/24/01	(5.06)%	6.23%	10.99%

Comparative benchmark(s)
	MSCI All Country World Growth Index (net div) (f)		(8.13)%	5.72%	10.78%

(f)	Source: FactSet Research Systems Inc.

Benchmark Definition(s)

MSCI All Country World Growth Index (net div) – a market capitalization-weighted index that is designed to measure equity market performance for growth securities in the global developed and emerging markets.

It is not possible to invest directly in an index.

Notes to Performance Summary

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

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

MFS Global Growth Portfolio

EXPENSE TABLE

Fund Expenses Borne by the Contract Holders during the Period,

July 1, 2018 through December 31, 2018

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period July 1, 2018 through December 31, 2018.

Actual Expenses

Hypothetical Example for Comparison Purposes


Share Class		Annualized Expense Ratio		Beginning Account Value 7/01/18		Ending Account Value 12/31/18		Expenses Paid During Period (p) 7/01/18-12/31/18
Initial Class	Actual		1.00%		$1,000.00		$922.49		$4.85
Initial Class	Hypothetical (h)		1.00%		$1,000.00		$1,020.16		$5.09
Service Class	Actual		1.25%		$1,000.00		$921.51		$6.05
Service Class	Hypothetical (h)		1.25%		$1,000.00		$1,018.90		$6.36

(h)	5% class return per year before expenses.

(p)	“Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect theone-half year period).

MFS Global Growth Portfolio

PORTFOLIO OF INVESTMENTS – 12/31/18

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



Issuer	Shares/Par		Value ($)
COMMON STOCKS – 99.4%
Aerospace – 2.0%
Rolls-Royce Holdings PLC		31,192	$	329,986
United Technologies Corp.		5,524		588,195

			$	918,181

Airlines – 1.1%
Aena S.A.		3,141	$	488,537

Alcoholic Beverages – 3.0%
Ambev S.A., ADR		105,539	$	413,713
Diageo PLC		11,029		392,909
Pernod Ricard S.A.		3,419		561,351

			$	1,367,973

Apparel Manufacturers – 6.3%
Adidas AG		3,193	$	667,288
Burberry Group PLC		11,137		246,358
Compagnie Financiere Richemont S.A.		2,270		145,887
LVMH Moet Hennessy Louis Vuitton SE		2,739		810,286
NIKE, Inc., “B”		8,994		666,815
VF Corp.		4,881		348,211

			$	2,884,845

Broadcasting – 0.4%
Walt Disney Co.		1,633	$	179,058

Brokerage & Asset Managers – 2.2%
Blackstone Group LP		23,587	$	703,128
Charles Schwab Corp.		7,267		301,799

			$	1,004,927

Business Services – 11.7%
Accenture PLC, “A”		6,428	$	906,412
Brenntag AG		6,934		299,512
Cognizant Technology Solutions Corp., “A”		10,461		664,064
Compass Group PLC		14,193		298,492
Experian PLC		36,270		880,676
Fidelity National Information Services, Inc.		7,053		723,285
Fiserv, Inc. (a)		9,753		716,748
Intertek Group PLC		3,665		224,228
Verisk Analytics, Inc., “A” (a)		5,842		637,012

			$	5,350,429

Cable TV – 1.8%
Comcast Corp., “A”		23,511	$	800,550

Chemicals – 1.4%
PPG Industries, Inc.		6,297	$	643,742

Computer Software – 3.3%
Dassault Systems S.A.		1,458	$	173,231
Microsoft Corp.		13,126		1,333,208

			$	1,506,439

Computer Software – Systems – 1.2%
Apple, Inc.		3,606	$	568,810



Issuer	Shares/Par		Value ($)
COMMON STOCKS – continued
Construction – 1.2%
Sherwin-Williams Co.		1,371	$	539,434

Consumer Products – 5.4%
Colgate-Palmolive Co.		7,358	$	437,948
Estee Lauder Cos., Inc., “A”		4,291		558,259
KOSE Corp.		1,200		190,313
L’Oréal		2,189		504,619
Reckitt Benckiser Group PLC		9,925		760,669

			$	2,451,808

Electrical Equipment – 3.1%
Amphenol Corp., “A”		5,989	$	485,229
Fortive Corp.		6,313		427,137
Mettler-Toledo International, Inc. (a)		898		507,891

			$	1,420,257

Electronics – 6.2%
Analog Devices, Inc.		8,961	$	769,123
Samsung Electronics Co. Ltd.		10,414		360,331
Taiwan Semiconductor Manufacturing Co. Ltd., ADR		25,544		942,829
Texas Instruments, Inc.		7,873		743,999

			$	2,816,282

Food & Beverages – 3.7%
Chr. Hansen Holding A.S.		1,394	$	123,346
Danone S.A.		5,199		366,400
Nestle S.A.		11,459		931,626
PepsiCo, Inc.		2,546		281,282

			$	1,702,654

Food & Drug Stores – 1.4%
Sundrug Co. Ltd.		20,800	$	618,707

Gaming & Lodging – 1.4%
Paddy Power Betfair PLC		7,873	$	642,235

General Merchandise – 2.0%
Dollarama, Inc.		26,158	$	622,143
Lojas Renner S.A.		28,669		313,634

			$	935,777

Insurance – 2.0%
Aon PLC		6,228	$	905,302

Internet – 7.0%
Alibaba Group Holding Ltd., ADR (a)		4,479	$	613,937
Alphabet, Inc., “A” (a)		1,648		1,722,094
Baidu, Inc., ADR (a)		2,748		435,833
NAVER Corp. (a)		4,111		447,925

			$	3,219,789

Leisure & Toys – 1.4%
Electronic Arts, Inc. (a)		8,055	$	635,620

MFS Global Growth Portfolio

Portfolio of Investments – continued



Issuer	Shares/Par		Value ($)
COMMON STOCKS – continued
Machinery & Tools – 3.6%
Daikin Industries Ltd.		5,800	$	610,340
Nordson Corp.		6,521		778,281
Schindler Holding AG		1,213		240,990

			$	1,629,611

Medical Equipment – 5.6%
Abbott Laboratories		8,902	$	643,882
Cooper Cos., Inc.		604		153,718
Danaher Corp.		3,786		390,412
Thermo Fisher Scientific, Inc.		3,322		743,430
Waters Corp. (a)		3,332		628,582

			$	2,560,024

Oil Services – 0.4%
Schlumberger Ltd.		5,333	$	192,415

Other Banks & Diversified Financials – 5.9%
Credicorp Ltd.		1,917	$	424,941
HDFC Bank Ltd.		24,129		733,288
Julius Baer Group Ltd.		8,192		292,731
Mastercard, Inc., “A”		2,556		482,190
Visa, Inc., “A”		5,670		748,100

			$	2,681,250

Pharmaceuticals – 3.6%
Bayer AG		12,232	$	848,737
Elanco Animal Health, Inc. (a)		528		16,648
Roche Holding AG		2,338		578,127
Zoetis, Inc.		2,504		214,192

			$	1,657,704

Printing & Publishing – 1.4%
Moody’s Corp.		4,635	$	649,085

Railroad & Shipping – 1.9%
Adani Ports and Special Economic Zone Ltd.		30,124	$	167,286
Union Pacific Corp.		4,982		688,662

			$	855,948

Restaurants – 1.6%
Starbucks Corp.		11,255	$	724,822



Issuer	Shares/Par		Value ($)
COMMON STOCKS – continued
Specialty Chemicals – 4.8%
Croda International PLC		7,694	$	459,447
Ecolab, Inc.		3,563		525,008
Kansai Paint Co. Ltd.		32,400		621,825
Sika AG		3,260		414,325
Symrise AG		2,443		180,540

			$	2,201,145

Specialty Stores – 1.4%
TJX Cos., Inc.		14,718	$	658,483

Total Common Stocks (Identified Cost, $32,363,464)			$	45,411,843


INVESTMENT COMPANIES (h) – 0.7%
Money Market Funds – 0.7%
MFS Institutional Money Market Portfolio, 2.4% (v) (Identified Cost, $298,797)		298,826	$	298,797

OTHER ASSETS, LESS LIABILITIES – (0.1)%				(37,425	)

NET ASSETS – 100.0%			$	45,673,215

(a)

Non-income producing security.

(h)

(v)

The following abbreviations are used in this report and are defined:

ADR

American Depositary Receipt

PLC

Public Limited Company

See Notes to Financial Statements

MFS Global Growth Portfolio

FINANCIAL STATEMENTS ^| STATEMENT OF ASSETS AND LIABILITIES

This statement represents your fund’s balance sheet, which details the assets and liabilities comprising the total value of the fund.


At 12/31/18

Assets
Investments in unaffiliated issuers, at value (identified cost, $32,363,464)			$45,411,843
Investments in affiliated issuers, at value (identified cost, $298,797)			298,797
Receivables for
Investments sold			1,915
Interest and dividends			77,894
Receivable from investment adviser			5,177
Other assets			667
Total assets			$45,796,293

Liabilities
Payables for
Fund shares reacquired			$61,341
Payable to affiliates
Shareholder servicing costs			13
Distribution and/or service fees			48
Payable for independent Trustees’ compensation			3
Deferred country tax expense payable			3,864
Accrued expenses and other liabilities			57,809
Total liabilities			$123,078
Net assets			$45,673,215

Net assets consist of
Paid-in capital			$27,171,749
Total distributable earnings (loss)			18,501,466
Net assets			$45,673,215
Shares of beneficial interest outstanding			1,925,970



	Net assets		Shares outstanding		Net asset value per share
Initial Class		$43,918,876		1,851,788		$23.72
Service Class		1,754,339		74,182		23.65

See Notes to Financial Statements

MFS Global Growth Portfolio

FINANCIAL STATEMENTS ^| STATEMENT OF OPERATIONS

This statement describes how much your fund earned in investment income and accrued in expenses. It also describes any gains and/or losses generated by fund operations.


Year ended 12/31/18

Net investment income (loss)
Income
Dividends	$886,016
Dividends from affiliated issuers	7,740
Other	3,148
Income on securities loaned	1,677
Foreign taxes withheld	(45,493	)
Total investment income	$853,088
Expenses
Management fee	$490,872
Distribution and/or service fees	5,706
Shareholder servicing costs	1,761
Administrative services fee	18,203
Independent Trustees’ compensation	2,104
Custodian fee	24,973
Shareholder communications	8,915
Audit and tax fees	74,375
Legal fees	526
Miscellaneous	18,807
Total expenses	$646,242
Reduction of expenses by investment adviser	(95,002	)
Net expenses	$551,240
Net investment income (loss)	$301,848

Realized and unrealized gain (loss)
Realized gain (loss) (identified cost basis)
Unaffiliated issuers (net of $252 country tax)	$5,302,666
Affiliated issuers	(95	)
Foreign currency	(4,754	)
Net realized gain (loss)	$5,297,817
Change in unrealized appreciation or depreciation
Unaffiliated issuers (net of $4,769 decrease in deferred country tax)	$(7,697,894	)
Translation of assets and liabilities in foreign currencies	(640	)
Net unrealized gain (loss)	$(7,698,534	)
Net realized and unrealized gain (loss)	$(2,400,717	)
Change in net assets from operations	$(2,098,869	)

See Notes to Financial Statements

MFS Global Growth Portfolio

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
	12/31/18			12/31/17
Change in net assets

From operations
Net investment income (loss)		$301,848			$291,982
Net realized gain (loss)		5,297,817			3,022,903
Net unrealized gain (loss)		(7,698,534	)		11,530,112
Change in net assets from operations		$(2,098,869	)		$14,844,997
Total distributions to shareholders (a)		$(3,336,024	)		$(2,400,071	)
Change in net assets from fund share transactions		$(6,308,369	)		$(3,564,898	)
Total change in net assets		$(11,743,262	)		$8,880,028

Net assets
At beginning of period		57,416,477			48,536,449
At end of period (b)		$45,673,215			$57,416,477

(a)	Distributions from net investment income and from net realized gain are no longer required to be separately disclosed. See Note 2. For the year ended December 31, 2017, distributions from net investment income and from net realized gain were $575,035 and $1,825,036, respectively.

(b)	Parenthetical disclosure of undistributed net investment income is no longer required. See Note 2. For the year ended December 31, 2017, end of period net assets included undistributed net investment income of $288,725.

See Notes to Financial Statements

MFS Global Growth Portfolio

FINANCIAL STATEMENTS ^| FINANCIAL HIGHLIGHTS


Initial Class	Year ended

	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14

Net asset value, beginning of period		$26.53			$21.00			$20.88			$22.45			$21.63

Income (loss) from investment operations
Net investment income (loss) (d)		$0.15			$0.13			$0.25	(c)		$0.12			$0.20
Net realized and unrealized gain (loss)		(1.23	)		6.51			1.08			(0.53	)		0.73
Total from investment operations		$(1.08	)		$6.64			$1.33			$(0.41	)		$0.93

Less distributions declared to shareholders
From net investment income		$(0.14	)		$(0.27	)		$(0.13	)		$(0.22	)		$(0.11	)
From net realized gain		(1.59	)		(0.84	)		(1.08	)		(0.94	)		—
Total distributions declared to shareholders		$(1.73	)		$(1.11	)		$(1.21	)		$(1.16	)		$(0.11	)
Net asset value, end of period (x)		$23.72			$26.53			$21.00			$20.88			$22.45
Total return (%) (k)(r)(s)(x)		(4.83	)		32.14			6.07	(c)		(1.54	)		4.32

Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)		1.17			1.17			0.72	(c)		1.17			1.20
Expenses after expense reductions (f)		1.00			1.00			0.55	(c)		1.01			1.12
Net investment income (loss)		0.56			0.55			1.18	(c)		0.52			0.91
Portfolio turnover		22			21			25			26			25
Net assets at end of period (000 omitted)		$43,919			$54,886			$46,182			$48,932			$55,050

Service Class	Year ended

	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14

Net asset value, beginning of period		$26.44			$20.94			$20.82			$22.38			$21.55

Income (loss) from investment operations
Net investment income (loss) (d)		$0.09			$0.07			$0.20	(c)		$0.06			$0.14
Net realized and unrealized gain (loss)		(1.24	)		6.48			1.08			(0.53	)		0.73
Total from investment operations		$(1.15	)		$6.55			$1.28			$(0.47	)		$0.87

Less distributions declared to shareholders
From net investment income		$(0.05	)		$(0.21	)		$(0.08	)		$(0.15	)		$(0.04	)
From net realized gain		(1.59	)		(0.84	)		(1.08	)		(0.94	)		—
Total distributions declared to shareholders		$(1.64	)		$(1.05	)		$(1.16	)		$(1.09	)		$(0.04	)
Net asset value, end of period (x)		$23.65			$26.44			$20.94			$20.82			$22.38
Total return (%) (k)(r)(s)(x)		(5.06	)		31.77			5.85	(c)		(1.82	)		4.05

Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)		1.42			1.42			0.94	(c)		1.42			1.45
Expenses after expense reductions (f)		1.25			1.25			0.77	(c)		1.26			1.37
Net investment income (loss)		0.34			0.31			0.94	(c)		0.27			0.63
Portfolio turnover		22			21			25			26			25
Net assets at end of period (000 omitted)		$1,754			$2,530			$2,355			$2,031			$2,372

See Notes to Financial Statements

MFS Global Growth Portfolio

Financial Highlights – continued

(c)

Amount reflects aone-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. Excluding the effect of the reimbursement of expenses, the total return for the year ended December 31, 2016 would have been approximately 0.55% lower.

(d)	Per share data is based on average shares outstanding.

(f)	Ratios do not reflect reductions from fees paid indirectly, if applicable.

(k)	The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown.

(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.

(x)	The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes.

See Notes to Financial Statements

MFS Global Growth Portfolio

NOTES TO FINANCIAL STATEMENTS

(1)

Business and Organization

MFS Global Growth Portfolio (the fund) is a diversified series of MFS Variable Insurance Trust II (the trust). The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as anopen-end management investment company. The shareholders of each series of the trust are separate accounts of insurance companies, which offer variable annuity and/or life insurance products, and qualified retirement and pension plans.

(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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated subsequent events occurring after the date of the fund’s Statement of Assets and Liabilities through the date that the financial statements were issued. The fund invests in foreign securities, including securities of emerging market issuers. Investments in foreign securities are vulnerable to the effects of changes in the relative values of the local currency and the U.S. dollar and to the effects of changes in each country’s market, economic, industrial, political, regulatory, geopolitical, and other conditions. Investments in emerging markets can involve additional and greater risks than the risks associated with investments in developed foreign markets. Emerging markets can have less developed markets, greater custody and operational risk, less developed legal, regulatory, and accounting systems, and greater political, social, and economic instability than developed markets.

MFS Global Growth Portfolio

Notes to Financial Statements – continued

The Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of the 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 the 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 effect 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 the 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 the fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the fund determines its net asset value per share.


Financial Instruments	Level 1		Level 2		Level 3		Total
Equity Securities:
United States		$26,032,266		$—		$—		$26,032,266
United Kingdom		3,592,764		—		—		3,592,764
Switzerland		—		2,603,686		—		2,603,686
France		2,415,887		—		—		2,415,887
Japan		—		2,041,185		—		2,041,185
Germany		1,996,077		—		—		1,996,077
China		1,049,769		—		—		1,049,769
Taiwan		942,829		—		—		942,829
India		900,574		—		—		900,574
Other Countries		3,028,549		808,257		—		3,836,806
Mutual Funds		298,797		—		—		298,797
Total		$40,257,512		$5,453,128		$—		$45,710,640

For further information regarding security characteristics, see the Portfolio of Investments.

MFS Global Growth Portfolio

Notes to Financial Statements – continued

the standard trade settlement period for such securities or within three business days. The loans are collateralized by cash and/or U.S. Treasury and federal agency obligations in an amount typically at least equal to the market value of the securities loaned. On loans collateralized by cash, the cash collateral is invested in a money market fund. The market value of the loaned securities is determined at the close of business of the fund and any additional required collateral is delivered to the fund on the next business day. The lending agent provides the fund with indemnification against Borrower default. In the event of Borrower default, the lending agent will, for the benefit of the fund, either purchase securities identical to those loaned or, when such purchase is commercially impracticable, pay the fund the market value of the loaned securities. In return, the lending agent assumes the fund’s rights to the related collateral. If the collateral value is less than the cost to purchase identical securities, the lending agent is responsible for the shortfall, but only to the extent that such shortfall is not due to a decline in collateral value resulting from collateral reinvestment for which the fund bears the risk of loss. A portion of the income generated upon investment of the collateral is remitted to the Borrowers, and the remainder is allocated between the fund and the lending agent. On loans collateralized by U.S. Treasury and/or federal agency obligations, a fee is received from the Borrower, and is allocated between the fund and the lending agent. Income from securities lending is separately reported in the Statement of Operations. The dividend and interest income earned on the securities loaned is accounted for in the same manner as other dividend and interest income. At December 31, 2018, there were no securities on loan or collateral outstanding.

Investment Transactions and Income– Investment transactions are recorded on the trade date. Interest income is recorded on the accrual basis. Dividends received in cash are recorded on theex-dividend date. Certain dividends from foreign securities will be recorded when the fund is informed of the dividend if such information is obtained subsequent to theex-dividend date. Dividend payments received in additional securities are recorded on theex-dividend date in an amount equal to the value of the security on such date.

Book/tax differences primarily relate to wash sale loss deferrals.

The tax character of distributions declared to shareholders for the last two fiscal years is as follows:


	Year ended		Year ended
	12/31/18		12/31/17
Ordinary income (including any short-term capital gains)		$701,022		$717,053
Long-term capital gains		2,635,002		1,683,018
Total distributions		$3,336,024		$2,400,071

MFS Global Growth Portfolio

Notes to Financial Statements – continued

The federal tax cost and the tax basis components of distributable earnings were as follows:


As of 12/31/18

Cost of investments	$32,843,664
Gross appreciation	14,451,599
Gross depreciation	(1,584,623	)
Net unrealized appreciation (depreciation)	$12,866,976

Undistributed ordinary income	633,777
Undistributed long-term capital gain	5,000,726
Other temporary differences	(13	)


	From net investment income				From net realized gain

	Year ended 12/31/18		Year ended 12/31/17		Year ended 12/31/18		Year ended 12/31/17
Initial Class		$258,094		$554,963		$2,958,456		$1,744,112
Service Class		3,919		20,072		115,555		80,924
Total		$262,013		$575,035		$3,074,011		$1,825,036

(3)

Transactions with Affiliates


Up to $1 billion			0.90%
In excess of $1 billion and up to $2 billion			0.75%
In excess of $2 billion			0.65%

MFS has agreed in writing to reduce its management fee by a specified amount if certain MFS mutual fund assets exceed thresholds agreed to by MFS and the fund’s Board of Trustees. For the year ended December 31, 2018, this management fee reduction amounted to $5,188, which is included in the reduction of total expenses in the Statement of Operations. The management fee incurred for the year ended December 31, 2018 was equivalent to an annual effective rate of 0.89% of the fund’s average daily net assets.

The investment adviser has agreed in writing to pay a portion of the fund’s total annual operating expenses, excluding interest, taxes, extraordinary expenses, brokerage and transaction costs, and investment-related expenses, such that total annual operating expenses do not exceed 1.00% of average daily net assets for the Initial Class shares and 1.25% of average daily net assets for the Service Class shares. This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until April 30, 2020. For the year ended December 31, 2018, this reduction amounted to $89,814, which is included in the reduction of total expenses in the Statement of Operations.

Shareholder Servicing Agent– MFS Service Center, Inc. (MFSC), a wholly-owned subsidiary of MFS, receives a fee from the fund for its services as shareholder servicing agent. For the year ended December 31, 2018, the fee was $1,623, which equated to 0.0030% annually of the fund’s average daily net assets. MFSC also receives payment from the fund forout-of-pocket expenses paid by MFSC on behalf of the fund. For the year ended December 31, 2018, these costs amounted to $138.

MFS Global Growth Portfolio

Notes to Financial Statements – continued

Other– This fund and certain other funds managed by MFS (the funds) have entered into a service agreement (the ISO Agreement) which provides for payment of fees solely by the funds to Tarantino LLC in return for the provision of services of an Independent Senior Officer (ISO) for the funds. Frank L. Tarantino serves as the ISO and is an officer of the funds and the sole member of Tarantino LLC. The funds can terminate the ISO Agreement with Tarantino LLC at any time under the terms of the ISO Agreement. For the year ended December 31, 2018, the fee paid by the fund under this agreement was $100 and is included in “Miscellaneous” expense in the Statement of Operations. MFS has agreed to bear all expenses associated with office space, other administrative support, and supplies provided to the ISO.

The fund is permitted to engage in purchase and sale transactions with funds and accounts for which MFS serves as investment adviser orsub-adviser (“cross-trades”) pursuant to a policy adopted by the Board of Trustees. This policy has been designed to ensure that cross-trades conducted by the fund comply with Rule17a-7 under the Investment Company Act of 1940. During the year ended December 31, 2018, the fund engaged in sale transactions pursuant to this policy, which amounted to $22,415. The sales transactions resulted in net realized gains (losses) of $(1,793).

Effective on or about January 3, 2018, the adviser has voluntarily undertaken to reimburse the fund from its own resources on a quarterly basis for the cost of investment research embedded in the cost of the fund’s securities trades. This agreement may be rescinded at any time. For the period on or about January 3, 2018 to December 31, 2018, this reimbursement amounted to $3,128, which is included in “Other” income in the Statement of Operations.

(4)

Portfolio Securities

For the year ended December 31, 2018, purchases and sales of investments, other than short-term obligations, aggregated $11,669,025 and $20,890,333, respectively.

(5)

Shares of Beneficial Interest

The 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:


	Year ended 12/31/18						Year ended 12/31/17

	Shares			Amount			Shares			Amount
Shares sold
Initial Class		33,609			$889,691			97,291			$2,411,672
Service Class		5,546			148,393			4,256			102,294
		39,155			$1,038,084			101,547			$2,513,966

Shares issued to shareholders in reinvestment of distributions
Initial Class		119,842			$3,216,550			95,003			$2,299,075
Service Class		4,460			119,474			4,184			100,996
	��	124,302			$3,336,024			99,187			$2,400,071

Shares reacquired
Initial Class		(370,676	)		$(9,821,213	)		(322,462	)		$(7,873,956	)
Service Class		(31,503	)		(861,264	)		(25,227	)		(604,979	)
		(402,179	)		$(10,682,477	)		(347,689	)		$(8,478,935	)

Net change
Initial Class		(217,225	)		$(5,714,972	)		(130,168	)		$(3,163,209	)
Service Class		(21,497	)		(593,397	)		(16,787	)		(401,689	)
		(238,722	)		$(6,308,369	)		(146,955	)		$(3,564,898	)

MFS Global Growth Portfolio

Notes to Financial Statements – continued

(6)

Line of Credit

The fund and certain other funds managed by MFS participate in a $1.25 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 Overnight Bank Funding rate or daily one month LIBOR plus an agreed upon spread. A commitment fee, based on the average daily, unused portion of the committed line of credit, is allocated among the participating funds. In addition, the 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, at a rate equal to the Overnight Bank Funding rate plus an agreed upon spread. For the year ended December 31, 2018, the fund’s commitment fee and interest expense were $323 and $0, respectively, and are included in “Miscellaneous” expense in the Statement of Operations.

(7)

Investments in Affiliated Issuers


Affiliated Issuers		Beginning Shares/Par Amount		Acquisitions Shares/Par Amount		Dispositions Shares/Par Amount			Ending Shares/Par Amount
MFS Institutional Money Market Portfolio			480,970		10,912,719		(11,094,863	)		298,826

Affiliated Issuers	Realized Gain (Loss)	Change in Unrealized Appreciation/ Depreciation		Capital Gain Distributions		Dividend Income			Ending Value
MFS Institutional Money Market Portfolio	$(95)		$—		$—		$7,740			$298,797

MFS Global Growth Portfolio

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees of MFS Variable Insurance Trust II and the Shareholders of MFS Global Growth Portfolio:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities of MFS Global Growth Portfolio (the “Fund”), including the portfolio of investments, as of December 31, 2018, the related statement 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of December 31, 2018, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

DELOITTE & TOUCHE LLP

Boston, Massachusetts

February 15, 2019

We have served as the auditor of one or more of the MFS investment companies since 1924.

MFS Global Growth Portfolio

TRUSTEES AND OFFICERS – IDENTIFICATION AND BACKGROUND


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds overseen by the Trustee	Principal Occupations During the Past Five Years	Other Directorships During the Past Five Years (j)
INTERESTED TRUSTEES
Robert J. Manning (k) (age 55)	Trustee	February 2004	135	Massachusetts Financial Services Company, Executive Chairman (since January 2017); Director; Chairman of the Board; Chief Executive Officer (until 2015);Co-Chief Executive Officer(2015-2016)	N/A

Robin A. Stelmach (k) (age 57)	Trustee	January 2014	135	Massachusetts Financial Services Company, Vice Chair (since January 2017); Chief Operating Officer and Executive Vice President (until January 2017)	N/A

INDEPENDENT TRUSTEES
John P. Kavanaugh (age 64)	Trustee and Chair of Trustees	January 2009	135	Private investor	N/A

Steven E. Buller (age 67)	Trustee	February 2014	135	Financial Accounting Standards Advisory Council, Chairman(2014-2015); Public Company Accounting Oversight Board, Standing Advisory Group, Member (until 2014); BlackRock, Inc. (investment management), Managing Director (until 2014), BlackRock Finco UK (investment management), Director (until 2014)	N/A

John A. Caroselli (age 64)	Trustee	March 2017	135	JC Global Advisors, LLC (management consulting), President (since 2015); First Capital Corporation (commercial finance), Executive Vice President (until 2015)	N/A

Maureen R. Goldfarb (age 63)	Trustee	January 2009	135	Private investor	N/A

Michael Hegarty (age 74)	Trustee	December 2004	135	Private investor	Rouse Properties Inc., Director (until 2016); Capmark Financial Group Inc., Director (until 2015)

Peter D. Jones (age 63)	Trustee	January 2019	135	Franklin Templeton Distributors, Inc. (investment management), President (until 2015); Franklin Templeton Institutional, LLC (investment management), Chairman (until 2015)	N/A

James W. Kilman, Jr. (age 57)	Trustee	January 2019	135	KielStrand Capital LLC (family office and merchant bank), Chief Executive Officer (since 2016); Morgan Stanley & Co. (financial services), Vice Chairman of Investment Banking,Co-Head of Diversified Financials Coverage – Financial Institutions Investment Banking Group (until 2016)	alpha-En Corporation, Director (since 2016)

MFS Global Growth Portfolio

Trustees and Officers – continued


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds overseen by the Trustee	Principal Occupations During the Past Five Years	Other Directorships During the Past Five Years (j)
Clarence Otis, Jr. (age 62)	Trustee	March 2017	135	Darden Restaurants, Inc., Chief Executive Officer (until 2014)	VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director; Federal Reserve Bank of Atlanta, Director (until 2015)

Maryanne L. Roepke (age 62)	Trustee	May 2014	135	American Century Investments (investment management), Senior Vice President and Chief Compliance Officer (until 2014)	N/A

Laurie J. Thomsen (age 61)	Trustee	March 2005	135	Private investor	The Travelers Companies, Director; Dycom Industries, Inc., Director (since 2015)


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds for which the Person is an Officer	Principal Occupations During the Past Five Years
OFFICERS
Christopher R. Bohane (k) (age 45)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Vice President and Assistant General Counsel

Kino Clark (k) (age 50)	Assistant Treasurer	January 2012	135	Massachusetts Financial Services Company, Vice President

John W. Clark, Jr. (k) (age 51)	Assistant Treasurer	April 2017	135	Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head – Treasurer’s Office (until February 2017)

Thomas H. Connors (k) (age 59)	Assistant Secretary and Assistant Clerk	September 2012	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Ethan D. Corey (k) (age 55)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel

David L. DiLorenzo (k) (age 50)	President	July 2005	135	Massachusetts Financial Services Company, Senior Vice President

Heidi W. Hardin (k) (age 51)	Secretary and Clerk	April 2017	135	Massachusetts Financial Services Company, Executive Vice President and General Counsel (since March 2017); Harris Associates (investment management), General Counsel (from September 2015 to January 2017); Janus Capital Management LLC (investment management), Senior Vice President and General Counsel (until September 2015)

Brian E. Langenfeld (k) (age 45)	Assistant Secretary and Assistant Clerk	June 2006	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Amanda S. Mooradian (k) (age 39)	Assistant Secretary and Assistant Clerk	September 2018	135	Massachusetts Financial Services Company, Assistant Vice President and Counsel

Susan A. Pereira (k) (age 48)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Kasey L. Phillips (k) (age 48)	Assistant Treasurer	September 2012	135	Massachusetts Financial Services Company, Vice President

Matthew A. Stowe (k) (age 44)	Assistant Secretary and Assistant Clerk	October 2014	135	Massachusetts Financial Services Company, Vice President and Assistant General Counsel

MFS Global Growth Portfolio

Trustees and Officers – continued


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds for which the Person is an Officer	Principal Occupations During the Past Five Years
Frank L. Tarantino (age 74)	Independent Senior Officer	June 2004	135	Tarantino LLC (provider of compliance services), Principal

Richard S. Weitzel (k) (age 48)	Assistant Secretary and Assistant Clerk	October 2007	135	Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel

Martin J. Wolin (k) (age 51)	Chief Compliance Officer	July 2015	135	Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer (since July 2015); Mercer (financial service provider), Chief Risk and Compliance Officer, North America and Latin America (until June 2015)

James O. Yost (k) (age 58)	Treasurer	September 1990	135	Massachusetts Financial Services Company, Senior Vice President

(h)

(j)	Directorships or trusteeships of companies required to report to the Securities and Exchange Commission (i.e., “public companies”).

(k)

Messrs. Buller, Hegarty, Kilman and Otis and Ms. Roepke are members of the Trust’s Audit Committee.

Each of the Interested Trustees and certain Officers hold comparable officer positions with certain affiliates of MFS.

The Statement of Additional Information for a Fund includes further information about the Trustees and is available without charge upon request by calling1-800-225-2606.


Investment Adviser Massachusetts Financial Services Company 111 Huntington Avenue Boston, MA 02199-7618		Custodian State Street Bank and Trust Company 1 Lincoln Street Boston, MA 02111-2900

Distributor MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618		Independent Registered Public Accounting Firm Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116

Portfolio Manager(s) David Antonelli Jeffrey Constantino Joseph Skorski

MFS Global Growth Portfolio

BOARD REVIEW OF INVESTMENT ADVISORY AGREEMENT

Based on information provided by Broadridge and MFS, the Trustees reviewed the Fund’s total return investment performance as well as the Broadridge performance universe over various time periods. The Trustees placed particular emphasis on the total return performance of the Fund’s Initial Class shares in comparison to the performance of funds in its Broadridge performance universe over the three-year period ended December 31, 2017, which the Trustees believed was a long enough period to reflect differing market conditions. The total return performance of the Fund’s Initial Class shares was in the 3rd quintile relative to the other funds in the universe for this three-year period (the 1st quintile being the best performers and the 5th quintile being the worst performers). The total return performance of the Fund’s Initial Class shares was in the 1st quintile for theone-year period and the 4th quintile for the five-year period ended December 31, 2017 relative to the Broadridge performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.

MFS Global Growth Portfolio

Board Review of Investment Advisory Agreement – continued

In assessing the reasonableness of the Fund’s advisory fee, the Trustees considered, among other information, the Fund’s advisory fee and the total expense ratio of the Fund’s Initial Class shares as a percentage of average daily net assets and the advisory fee and total expense ratios of peer groups of funds based on information provided by Broadridge. The Trustees considered that MFS currently observes an expense limitation for the Fund, which may not be changed without the Trustees’ approval. The Trustees also considered that, according to the data provided by Broadridge (which takes into account any fee reductions or expense limitations that were in effect during the Fund’s last fiscal year), the Fund’s effective advisory fee rate was higher than the Broadridge expense group median and the Fund’s total expense ratio was approximately at the Broadridge expense group median.

The Trustees also considered whether the Fund may benefit from any economies of scale in the management of the Fund in the event of growth in assets of the Fund and/or growth in assets of the MFS Funds as a whole. They noted that the Fund’s advisory fee rate schedule is subject to contractual breakpoints that reduce the Fund’s advisory fee rate on average daily net assets over $1 billion and $2 billion. The Trustees also noted that MFS has agreed in writing to waive a portion of the management fees of certain MFS Funds, including the Fund, if the total combined assets of certain funds within the MFS Funds’ complex increase above agreed upon thresholds (the “group fee waiver”), enabling the Fund’s shareholders to share in the benefits from any economies of scale at the complex level. The group fee waiver is reviewed and renewed annually between the Board and MFS. The Trustees concluded that the breakpoints and the group fee waiver were sufficient to allow the Fund to benefit from economies of scale as its assets and overall complex assets grow.

MFS Global Growth Portfolio

PROXY VOTING POLICIES AND INFORMATION

QUARTERLY PORTFOLIO DISCLOSURE

FURTHER INFORMATION

INFORMATION ABOUT FUND CONTRACTS AND LEGAL CLAIMS

FEDERAL TAX INFORMATION (unaudited)

The following information is provided pursuant to provisions of the Internal Revenue Code.

The fund designates $2,899,000 as capital gain dividends paid during the fiscal year.

For corporate shareholders, 46.70% of the ordinary income dividends paid during the fiscal year qualify for the corporate dividends received deduction.

rev. 3/16


FACTS		WHAT DOES MFS DO WITH YOUR PERSONAL INFORMATION?


Why?		Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.

What?

The types of personal information we collect and share depend on the product or service you have with us. This information can include:

• Social Security number and account balances

• Account transactions and transaction history

• Checking account information and wire transfer instructions

When you areno longer our customer, we continue to share your information as described in this notice.


How?		All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons MFS chooses to share; and whether you can limit this sharing.


Reasons we can share your personal information	Does MFS share?	Can you limit this sharing?
For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes – to offer our products and services to you	No	We don’t share
For joint marketing with other financial companies	No	We don’t share
For our affiliates’ everyday business purposes – information about your transactions and experiences	No	We don’t share
For our affiliates’ everyday business purposes – information about your creditworthiness	No	We don’t share
For nonaffiliates to market to you	No	We don’t share


Questions?		Call800-225-2606 or go tomfs.com.


Page 2


Who we are
Who is providing this notice?		MFS Funds, MFS Investment Management, MFS Institutional Advisors, Inc., and MFS Heritage Trust Company.


What we do
How does MFS protect my personal information?		To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include procedural, electronic, and physical safeguards for the protection of the personal information we collect about you.
How does MFS collect my personal information?		We collect your personal information, for example, when you • open an account or provide account information • direct us to buy securities or direct us to sell your securities • make a wire transfer We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can’t I limit all sharing?		Federal law gives you the right to limit only • sharing for affiliates’ everyday business purposes – information about your creditworthiness • affiliates from using your information to market to you • sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing.


Definitions
Affiliates		Companies related by common ownership or control. They can be financial and nonfinancial companies. • MFS does not share personal information with affiliates, except for everyday business purposes as described on page one of this notice.
Nonaffiliates		Companies not related by common ownership or control. They can be financial and nonfinancial companies. • MFS does not share with nonaffiliates so they can market to you.
Joint marketing		A formal agreement between nonaffiliated financial companies that together market financial products or services to you. • MFS doesn’t jointly market.


Other important information
If you own an MFS product or receive an MFS service in the name of a third party such as a bank or broker-dealer, their privacy policy may apply to you instead of ours.

LOGO

Annual Report

December 31, 2018

LOGO

MFS^® Global Research Portfolio

LOGO

MFS^® Variable Insurance Trust II

RES-ANN

MFS® Global Research Portfolio

CONTENTS

The report is prepared for the general information of contract owners. 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 OR CREDIT UNION GUARANTEE• NOT A DEPOSIT• NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY OR NCUA/NCUSIF

MFS Global Research Portfolio

LETTER FROM THE EXECUTIVE CHAIRMAN

LOGO

Dear Contract Owners:

Respectfully,

LOGO

Robert J. Manning

Executive Chairman

MFS Investment Management

February 15, 2019

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

MFS Global Research Portfolio

PORTFOLIO COMPOSITION

Portfolio structure

LOGO


Top ten holdings
Microsoft Corp.			2.5%
Amazon.com, Inc.			2.1%
Alphabet, Inc., “A”			1.9%
Salesforce.com, Inc.			1.4%
AIA Group Ltd.			1.4%
Facebook, Inc., “A”			1.4%
HDFC Bank Ltd.			1.4%
Medtronic PLC			1.3%
Honeywell International, Inc.			1.3%
Aon PLC			1.3%

Global equity sectors (k)
Financial Services			20.3%
Technology			19.5%
Capital Goods			16.9%
Health Care			11.9%
Consumer Cyclicals			10.8%
Energy			9.1%
Consumer Staples			6.6%
Telecommunications/Cable Television			4.3%


Issuer country weightings (x)
United States			60.4%
United Kingdom			5.1%
Switzerland			4.9%
Japan			4.5%
France			4.5%
Canada			3.1%
Hong Kong			2.6%
Germany			2.3%
China			2.0%
Other Countries			10.6%

Currency exposure weightings (y)
United States Dollar			62.3%
Euro			11.8%
Swiss Franc			4.9%
British Pound Sterling			4.8%
Japanese Yen			4.5%
Hong Kong Dollar			3.6%
Canadian Dollar			2.6%
Taiwan Dollar			1.4%
Indian Rupee			1.4%
Other Currencies			2.7%

(k)	The sectors set forth above and the associated portfolio composition are based on MFS’ own custom sector classification methodology.

(x)	Represents the portfolio’s exposure to issuer countries as a percentage of a portfolio’s net assets. For purposes of this presentation, United States includes Cash & Cash Equivalents.

(y)	Represents the portfolio’s exposure to a particular currency as a percentage of a portfolio’s net assets. For purposes of this presentation, United States Dollar includes Cash & Cash Equivalents.

Percentages are based on net assets as of December 31, 2018.

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

MFS Global Research Portfolio

MANAGEMENT REVIEW

Summary of Results

For the twelve months ended December 31, 2018, Initial Class shares of the MFS Global Research Portfolio (“fund”) provided a total return of –8.83%, while Service Class shares of the fund provided a total return of –9.06%. These compare with a return of –9.42% over the same period for the fund’s benchmark, the MSCI All Country World Index (net div).

Market Environment

Contributors to Performance

Stock selection in both thetechnologyandcapital goodssectors was a primary contributor to performance relative to the MSCI All Country World Index. Within thetechnology sector, the fund’s overweight positions in customer information software manager Salesforce.com, digital marketing and media solutions provider Adobe Systems and global banking and payment technologies provider Fidelity National Information Services supported relative returns. The stock price of Adobe Systems appreciated as the company delivered strong earnings results, driven by perpetual Acrobat revenues and healthy revenue growth in the company’s Creative Cloud, Document Cloud and Experience Cloud services divisions. Within thecapital goods sector, there were no individual stocks that were among the portfolio’s largest relative contributors during the reporting period.

Elsewhere, the fund’s overweight positions in athletic shoes and apparel manufacturer NIKE, medical device maker Medtronic, risk management and human capital consulting services provider Aon,e-commerce and cloud services giant Amazon.com and financial services company Credicorp (Peru) helped relative performance. Shares of Medtronic advanced during the period, driven by strong growth across all regions and business segments. Management also increased organic revenue growth guidance for 2019, which further supported the stock. Additionally, the fund’s position in shares of real estate investment trust Store Capital (b) and banking and financial services provider HDFC Bank (b) (India) bolstered relative results.

During the reporting period, the fund’s relative currency exposure, resulting primarily from differences between the fund’s and the benchmark’s exposures to holdings of securities denominated in foreign currencies, contributed to relative performance. All of MFS’ investment decisions are driven by the fundamentals of each individual opportunity and, as such, it is common for our portfolios to have different currency exposures than the benchmark.

Detractors from Performance

Stock selection in both thehealth careandconsumer staplessectors detracted from relative performance. Within thehealth caresector, the fund’s overweight position in shares of pharmaceutical company Bayer AG (Germany), and not owning shares of pharmaceutical company Merck, weakened relative returns. The stock price of Bayer depreciated after a court awarded damages to an individual who claimed to have contractedNon-Hodgkin’s Lymphoma cancer from glyphosate herbicide, which was discovered and branded as Roundup by Monsanto, whom Bayer acquired in 2018. The stock traded significantly lower after the news, as

MFS Global Research Portfolio

Management Review – continued

investors appeared to have been concerned that more lawsuits would be filed against Bayer. Within theconsumer staples sector, the fund’s overweight position in beauty products company Coty (h) hindered relative results.

Elsewhere, the fund’s overweight positions in information technology company DXC Technology, global banking group BNP Paribas (France), private banking services provider Julius Baer Group (Switzerland), industrial process technology manufacturer GEA Group (Germany), diversified financial services firm Citigroup, investment management and banking firm UBS (Switzerland) and general merchandise retailer Sundrug (Japan) were also among the top relative detractors during the reporting period. The stock price of DXC Technology declined late in the period after the company missed, then lowered, its revenue expectations, driven by execution challenges in its Digital business and foreign exchange headwinds.

Respectfully,

Portfolio Manager(s)

James Keating and Joseph MacDougall

(b)	Security is not a benchmark constituent.

(h)	Security was not held in the portfolio at period end.

Note to Shareholders: Effective November 6, 2018, Ben Kottler is no longer a Portfolio Manager of the Fund.

MFS Global Research Portfolio

PERFORMANCE SUMMARY THROUGH 12/31/18

Growth of a Hypothetical $10,000 Investment

LOGO

Total Returns through 12/31/18

Average annual total returns


	Share Class	Class Inception Date	1-yr	5-yr	10-yr
	Initial Class	11/07/94	(8.83)%	4.15%	9.47%
	Service Class	8/24/01	(9.06)%	3.89%	9.19%

Comparative benchmark(s)
	MSCI All Country World Index (net div) (f)		(9.42)%	4.26%	9.46%

(f)	Source: FactSet Research Systems Inc.

Benchmark Definition(s)

MSCI All Country World Index (net div) – a market capitalization-weighted index that is designed to measure equity market performance in the global developed and emerging markets.

It is not possible to invest directly in an index.

Notes to Performance Summary

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

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

MFS Global Research Portfolio

EXPENSE TABLE

Fund Expenses Borne by the Contract Holders during the Period, July 1, 2018 through December 31, 2018

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period July 1, 2018 through December 31, 2018.

Actual Expenses

Hypothetical Example for Comparison Purposes


Share Class		Annualized Expense Ratio		Beginning Account Value 7/01/18		Ending Account Value 12/31/18		Expenses Paid During Period (p) 7/01/18-12/31/18
Initial Class	Actual		0.86%		$1,000.00		$898.99		$4.12
Initial Class	Hypothetical (h)		0.86%		$1,000.00		$1,020.87		$4.38
Service Class	Actual		1.11%		$1,000.00		$897.75		$5.31
Service Class	Hypothetical (h)		1.11%		$1,000.00		$1,019.61		$5.65

(h)	5% class return per year before expenses.

(p)	“Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect theone-half year period).

Notes to Expense 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 ratios, the actual expenses paid during the period, and the hypothetical expenses paid during the period would have been approximately 0.85%, $4.07, and $4.33 for Initial Class and 1.10%, $5.26, and $5.60 for Service Class, respectively. 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.

MFS Global Research Portfolio

PORTFOLIO OF INVESTMENTS – 12/31/18

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



Issuer	Shares/Par		Value ($)
COMMON STOCKS – 99.4%
Aerospace – 3.0%
Honeywell International, Inc.		8,312	$	1,098,182
Northrop Grumman Corp.		3,089		756,496
United Technologies Corp.		5,588		595,010

			$	2,449,688

Alcoholic Beverages – 1.5%
AmBev S.A., ADR		72,593	$	284,565
China Resources Beer Holdings Co. Ltd.		116,000		405,159
Constellation Brands, Inc., “A”		2,207		354,930
Thai Beverage PLC		484,400		216,797

			$	1,261,451

Apparel Manufacturers – 1.9%
LVMH Moet Hennessy Louis Vuitton SE		2,428	$	718,281
NIKE, Inc., “B”		11,920		883,749

			$	1,602,030

Biotechnology – 0.7%
Biogen, Inc. (a)		1,814	$	545,869

Brokerage & Asset Managers – 2.6%
Blackstone Group LP		20,878	$	622,373
NASDAQ, Inc.		5,436		443,415
TD Ameritrade Holding Corp.		12,768		625,121
TMX Group Ltd.		9,578		496,229

			$	2,187,138

Business Services – 5.2%
Accenture PLC, “A”		4,071	$	574,052
Cognizant Technology Solutions Corp., “A”		9,513		603,885
DXC Technology Co.		12,387		658,617
Fidelity National Information Services, Inc.		9,664		991,043
Fiserv, Inc. (a)		9,290		682,722
Global Payments, Inc.		8,051		830,300

			$	4,340,619

Cable TV – 1.0%
Comcast Corp., “A”		23,447	$	798,370

Chemicals – 1.9%
DowDuPont, Inc.		15,093	$	807,174
PPG Industries, Inc.		7,670		784,104

			$	1,591,278

Computer Software – 5.1%
Adobe Systems, Inc. (a)		4,498	$	1,017,628
Microsoft Corp.		20,228		2,054,558
Salesforce.com, Inc. (a)		8,633		1,182,462

			$	4,254,648

Computer Software – Systems – 0.6%
Constellation Software, Inc.		823	$	526,800

Construction – 2.2%
Sherwin-Williams Co.		1,930	$	759,378
Techtronic Industries Co. Ltd.		71,500		379,848



Issuer	Shares/Par		Value ($)
COMMON STOCKS – continued
Construction – continued
Toll Brothers, Inc.		8,027	$	264,329
Vulcan Materials Co.		4,466		441,241

			$	1,844,796

Consumer Products – 1.2%
Kao Corp.		4,800	$	353,884
L’Oréal		1,144		263,721
Reckitt Benckiser Group PLC		5,355		410,416

			$	1,028,021

Consumer Services – 0.9%
Bookings Holdings, Inc. (a)		407	$	701,025

Containers – 0.6%
Berry Global Group, Inc. (a)		10,276	$	488,418

Electrical Equipment – 2.0%
HD Supply Holdings, Inc. (a)		11,744	$	440,635
Resideo Technologies, Inc. (a)		1,385		28,462
Schneider Electric S.A.		11,578		792,215
TE Connectivity Ltd.		5,595		423,150

			$	1,684,462

Electronics – 2.7%
Analog Devices, Inc.		8,519	$	731,186
NVIDIA Corp.		2,655		354,442
Taiwan Semiconductor Manufacturing Co. Ltd.		121,000		887,709
Taiwan Semiconductor Manufacturing Co. Ltd., ADR		7,634		281,771

			$	2,255,108

Energy – Independent – 2.0%
EOG Resources, Inc.		8,499	$	741,198
Marathon Petroleum Corp.		7,903		466,356
Oil Search Ltd.		93,048		469,254

			$	1,676,808

Energy – Integrated – 1.9%
BP PLC		138,148	$	873,286
Suncor Energy, Inc.		25,220		704,394

			$	1,577,680

Food & Beverages – 3.1%
Danone S.A.		5,977	$	421,230
Mondelez International, Inc.		14,341		574,070
Nestle S.A.		10,598		861,626
PepsiCo, Inc.		6,265		692,157

			$	2,549,083

Food & Drug Stores – 1.0%
Sundrug Co. Ltd.		15,900	$	472,954
Tesco PLC		148,958		360,927

			$	833,881

MFS Global Research Portfolio

Portfolio of Investments – continued


Issuer	Shares/Par		Value ($)
COMMON STOCKS – continued
Gaming & Lodging – 0.8%
Hilton Worldwide Holdings, Inc.		4,843	$	347,727
Paddy Power Betfair PLC		3,790		309,167

			$	656,894

Health Maintenance Organizations – 0.6%
Cigna Corp.		2,446	$	464,544

Insurance – 3.6%
AIA Group Ltd.		141,000	$	1,170,424
Aon PLC		7,223		1,049,935
Chubb Ltd.		5,788		747,694

			$	2,968,053

Internet – 4.5%
Alphabet, Inc., “A” (a)(s)		1,536	$	1,605,059
Alphabet, Inc., “C” (a)		211		218,514
Baidu, Inc., ADR (a)		2,084		330,522
Facebook, Inc., “A” (a)(s)		8,882		1,164,341
LogMeIn, Inc.		5,407		441,049

			$	3,759,485

Leisure & Toys – 0.7%
Electronic Arts, Inc. (a)		7,206	$	568,625

Machinery & Tools – 2.8%
Flowserve Corp.		9,989	$	379,782
GEA Group AG		12,889		332,270
Kubota Corp.		31,700		446,362
Roper Technologies, Inc.		2,742		730,798
Schindler Holding AG		1,943		386,020

			$	2,275,232

Major Banks – 2.8%
Barclays PLC		234,091	$	449,110
BNP Paribas		17,998		814,022
Mitsubishi UFJ Financial Group, Inc.		80,800		398,436
UBS AG		55,540		693,304

			$	2,354,872

Medical & Health Technology & Services – 0.9%
ICON PLC (a)		5,434	$	702,127

Medical Equipment – 4.6%
Boston Scientific Corp. (a)		14,074	$	497,375
Danaher Corp.		8,072		832,385
EssilorLuxottica		5,321		673,362
Medtronic PLC		12,141		1,104,345
PerkinElmer, Inc.		8,710		684,171

			$	3,791,638

Metals & Mining – 0.8%
Rio Tinto Ltd.		13,572	$	645,248

Natural Gas – Distribution – 0.5%
China Resources Gas Group Ltd.		112,000	$	443,394

Natural Gas – Pipeline – 1.0%
Enbridge, Inc.		13,087	$	406,548
Enterprise Products Partners LP		18,133		445,891

			$	852,439


Issuer	Shares/Par		Value ($)
COMMON STOCKS – continued
Network & Telecom – 1.3%
Cisco Systems, Inc.		23,956	$	1,038,014

Oil Services – 0.4%
Schlumberger Ltd.		9,066	$	327,101

Other Banks & Diversified Financials – 9.3%
Aeon Credit Service Co. Ltd.		31,100	$	558,673
Citigroup, Inc. (s)		20,056		1,044,115
Credicorp Ltd.		4,246		941,211
HDFC Bank Ltd.		37,470		1,138,725
Intesa Sanpaolo S.p.A.		340,803		755,313
Julius Baer Group Ltd.		12,600		450,246
KBC Groep N.V.		12,149		788,969
Mastercard, Inc., “A”		5,420		1,022,483
U.S. Bancorp		22,158		1,012,621

			$	7,712,356

Pharmaceuticals – 5.2%
Bayer AG		10,254	$	711,490
Elanco Animal Health, Inc. (a)		10,079		317,791
Johnson & Johnson		7,414		956,777
Roche Holding AG		3,933		972,529
Santen Pharmaceutical Co. Ltd.		49,500		708,393
Zoetis, Inc.		7,716		660,027

			$	4,327,007

Printing & Publishing – 0.6%
RELX Group PLC		24,337	$	501,077

Railroad & Shipping – 1.0%
Canadian Pacific Railway Ltd.		2,556	$	453,997
DP World Ltd.		22,956		392,547

			$	846,544

Real Estate – 1.9%
LEG Immobilien AG		8,102	$	845,855
Store Capital Corp., REIT		26,301		744,581

			$	1,590,436

Restaurants – 1.5%
Starbucks Corp.		10,974	$	706,726
Yum China Holdings, Inc.		14,770		495,238

			$	1,201,964

Specialty Chemicals – 2.6%
Akzo Nobel N.V.		6,121	$	493,725
Croda International PLC		7,633		455,804
Linde PLC		4,745		753,238
Sika AG		3,424		435,168

			$	2,137,935

Specialty Stores – 3.5%
Amazon.com, Inc. (a)		1,180	$	1,772,325
Costco Wholesale Corp.		2,838		578,129
Dufry AG		2,618		248,641
Just Eat PLC (a)		39,624		296,362

			$	2,895,457

MFS Global Research Portfolio

Portfolio of Investments – continued



Issuer	Shares/Par		Value ($)
COMMON STOCKS – continued
Telecommunications – Wireless – 2.8%
Advanced Info Service PLC		116,500	$	617,207
American Tower Corp., REIT		3,922		620,421
KDDI Corp.		34,200		814,989
Tele2 AB, “B”		22,557		288,230

			$	2,340,847

Telephone Services – 0.5%
Hellenic Telecommunications Organization S.A.		36,967	$	403,219

Tobacco – 0.8%
British American Tobacco PLC		6,137	$	195,555
Philip Morris International, Inc.		6,451		430,669

			$	626,224

Utilities – Electric Power – 3.3%
CLP Holdings Ltd.		56,000	$	632,910
CMS Energy Corp.		18,399		913,510
Iberdrola S.A.		63,782		512,863
NextEra Energy, Inc.		3,689		641,222

			$	2,700,505

Total Common Stocks (Identified Cost, $76,229,035)			$	82,328,410


INVESTMENT COMPANIES (h) – 0.6%
Money Market Funds – 0.6%
MFS Institutional Money Market Portfolio, 2.4% (v) (Identified Cost, $503,435)		503,451	$	503,401

OTHER ASSETS, LESS LIABILITIES – 0.0%				32,353

NET ASSETS – 100.0%			$	82,864,164

(a)

Non-income producing security.

(h)

(s)

Security or a portion of the security was pledged to cover collateral requirements for certain derivative transactions.

(v)

The following abbreviations are used in this report and are defined:

ADR

American Depositary Receipt

PLC

Public Limited Company

REIT

Real Estate Investment Trust

At December 31, 2018, the fund had cash collateral of $2,538 and other liquid securities with an aggregate value of $569,848 to cover any collateral or margin obligations for certain derivative contracts. Restricted cash and deposits with brokers in the Statement of Assets and Liabilities are comprised of cash collateral.

See Notes to Financial Statements

MFS Global Research Portfolio

FINANCIAL STATEMENTS ^| STATEMENT OF ASSETS AND LIABILITIES

This statement represents your fund’s balance sheet, which details the assets and liabilities comprising the total value of the fund.


At 12/31/18

Assets
Investments in unaffiliated issuers, at value (identified cost, $76,229,035)			$82,328,410
Investments in affiliated issuers, at value (identified cost, $503,435)			503,401
Deposits with brokers			2,538
Receivables for
Fund shares sold			11,967
Interest and dividends			148,389
Receivable from investment adviser			2,296
Other assets			901
Total assets			$82,997,902

Liabilities
Payables for
Investments purchased			$12,426
Fund shares reacquired			53,912
Payable to affiliates
Shareholder servicing costs			18
Distribution and/or service fees			150
Payable for independent Trustees’ compensation			5
Deferred country tax expense payable			3,573
Accrued expenses and other liabilities			63,654
Total liabilities			$133,738
Net assets			$82,864,164

Net assets consist of
Paid-in capital			$68,169,587
Total distributable earnings (loss)			14,694,577
Net assets			$82,864,164
Shares of beneficial interest outstanding			3,070,144



	Net assets		Shares outstanding		Net asset value per share
Initial Class		$77,345,093		2,864,908		$27.00
Service Class		5,519,071		205,236		26.89

See Notes to Financial Statements

MFS Global Research Portfolio

FINANCIAL STATEMENTS ^| STATEMENT OF OPERATIONS

This statement describes how much your fund earned in investment income and accrued in expenses. It also describes any gains and/or losses generated by fund operations.


Year ended 12/31/18

Net investment income (loss)
Income
Dividends	$1,954,542
Dividends from affiliated issuers	10,426
Income on securities loaned	4,170
Other	387
Interest	74
Foreign taxes withheld	(104,414	)
Total investment income	$1,865,185
Expenses
Management fee	$740,138
Distribution and/or service fees	16,748
Shareholder servicing costs	2,362
Administrative services fee	24,415
Independent Trustees’ compensation	3,532
Custodian fee	40,041
Shareholder communications	15,185
Audit and tax fees	62,781
Legal fees	900
Miscellaneous	25,003
Total expenses	$931,105
Reduction of expenses by investment adviser	(44,548	)
Net expenses	$886,557
Net investment income (loss)	$978,628

Realized and unrealized gain (loss)
Realized gain (loss) (identified cost basis)
Unaffiliated issuers (net of $1,690 country tax)	$7,597,818
Affiliated issuers	(74	)
Foreign currency	(6,462	)
Net realized gain (loss)	$7,591,282
Change in unrealized appreciation or depreciation
Unaffiliated issuers (net of $6,534 decrease in deferred country tax)	$(16,335,567	)
Affiliated issuers	(1	)
Translation of assets and liabilities in foreign currencies	(1,354	)
Net unrealized gain (loss)	$(16,336,922	)
Net realized and unrealized gain (loss)	$(8,745,640	)
Change in net assets from operations	$(7,767,012	)

See Notes to Financial Statements

MFS Global Research Portfolio

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
	12/31/18			12/31/17
Change in net assets

From operations
Net investment income (loss)		$978,628			$993,059
Net realized gain (loss)		7,591,282			8,681,235
Net unrealized gain (loss)		(16,336,922	)		13,816,166
Change in net assets from operations		$(7,767,012	)		$23,490,460
Total distributions to shareholders (a)		$(6,655,034	)		$(1,601,030	)
Change in net assets from fund share transactions		$(8,459,434	)		$(14,840,181	)
Total change in net assets		$(22,881,480	)		$7,049,249

Net assets
At beginning of period		105,745,644			98,696,395
At end of period (b)		$82,864,164			$105,745,644

(a)	Distributions from net investment income and from net realized gain are no longer required to be separately disclosed. See Note 2. For the year ended December 31, 2017, distributions from net investment income were $1,601,030.

(b)	Parenthetical disclosure of undistributed net investment income is no longer required. See Note 2. For the year ended December 31, 2017, end of period net assets included undistributed net investment income of $995,382.

See Notes to Financial Statements

MFS Global Research Portfolio

FINANCIAL STATEMENTS ^| FINANCIAL HIGHLIGHTS


Initial Class	Year ended

	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14

Net asset value, beginning of period		$31.74			$25.69			$24.63			$25.18			$24.85

Income (loss) from investment operations
Net investment income (loss) (d)		$0.32			$0.28			$0.41	(c)		$0.25			$0.29
Net realized and unrealized gain (loss)		(2.82	)		6.24			0.93			(0.47	)		0.31
Total from investment operations		$(2.50	)		$6.52			$1.34			$(0.22	)		$0.60

Less distributions declared to shareholders
From net investment income		$(0.33	)		$(0.47	)		$(0.28	)		$(0.33	)		$(0.27	)
From net realized gain		(1.91	)		—			—			—			—
Total distributions declared to shareholders		$(2.24	)		$(0.47	)		$(0.28	)		$(0.33	)		$(0.27	)
Net asset value, end of period (x)		$27.00			$31.74			$25.69			$24.63			$25.18
Total return (%) (k)(r)(s)(x)		(8.83	)		25.51			5.44	(c)		(0.81	)		2.40

Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)		0.93			0.92			0.78	(c)		0.92			0.92
Expenses after expense reductions (f)		0.88			0.92			0.77	(c)		0.91			0.91
Net investment income (loss)		1.01			0.97			1.64	(c)		0.98			1.15
Portfolio turnover		22			33			40			40			37
Net assets at end of period (000 omitted)		$77,345			$98,434			$91,281			$98,321			$113,018
Ratio of expenses to average net assets after expense reductions excluding short sale expenses (f)		N/A			N/A			N/A			N/A			0.91

Service Class	Year ended

	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14

Net asset value, beginning of period		$31.61			$25.59			$24.52			$25.06			$24.72

Income (loss) from investment operations
Net investment income (loss) (d)		$0.24			$0.21			$0.34	(c)		$0.19			$0.23
Net realized and unrealized gain (loss)		(2.82	)		6.20			0.94			(0.47	)		0.31
Total from investment operations		$(2.58	)		$6.41			$1.28			$(0.28	)		$0.54

Less distributions declared to shareholders
From net investment income		$(0.23	)		$(0.39	)		$(0.21	)		$(0.26	)		$(0.20	)
From net realized gain		(1.91	)		—			—			—			—
Total distributions declared to shareholders		$(2.14	)		$(0.39	)		$(0.21	)		$(0.26	)		$(0.20	)
Net asset value, end of period (x)		$26.89			$31.61			$25.59			$24.52			$25.06
Total return (%) (k)(r)(s)(x)		(9.06	)		25.17			5.21	(c)		(1.09	)		2.15

Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)		1.18			1.17			1.03	(c)		1.17			1.17
Expenses after expense reductions (f)		1.13			1.17			1.02	(c)		1.16			1.16
Net investment income (loss)		0.76			0.73			1.39	(c)		0.74			0.90
Portfolio turnover		22			33			40			40			37
Net assets at end of period (000 omitted)		$5,519			$7,312			$7,415			$8,151			$9,551
Ratio of expenses to average net assets after expense reductions excluding short sale expenses (f)		N/A			N/A			N/A			N/A			1.16

See Notes to Financial Statements

MFS Global Research Portfolio

Financial Highlights – continued

(c)	Amount reflects aone-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher.

(d)	Per share data is based on average shares outstanding.

(f)	Ratios do not reflect reductions from fees paid indirectly, if applicable.

(k)	The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown.

(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.

(x)	The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes.

See Notes to Financial Statements

MFS Global Research Portfolio

NOTES TO FINANCIAL STATEMENTS

(1)

Business and Organization

MFS Global Research Portfolio (the fund) is a diversified series of MFS Variable Insurance Trust II (the trust). The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as anopen-end management investment company. The shareholders of each series of the trust are separate accounts of insurance companies, which offer variable annuity and/or life insurance products, and qualified retirement and pension plans.

(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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated subsequent events occurring after the date of the fund’s Statement of Assets and Liabilities through the date that the financial statements were issued. The fund invests in foreign securities. Investments in foreign securities are vulnerable to the effects of changes in the relative values of the local currency and the U.S. dollar and to the effects of changes in each country’s market, economic, industrial, political, regulatory, geopolitical, and other conditions.

In August 2018, the FASB issued Accounting Standards Update2018-13, Fair Value Measurement (Topic 820) – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (“ASU2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements.ASU 2018-13 would be effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years; however, management has elected to early adopt ASU2018-13 effective with the current reporting period. The impact of the fund’s adoption was limited to changes in the fund’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy.

MFS Global Research Portfolio

Notes to Financial Statements – continued

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 effect 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 the 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 the fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the fund determines its net asset value per share.


Financial Instruments	Level 1		Level 2		Level 3		Total
Equity Securities:
United States		$49,540,217		$—		$—		$49,540,217
United Kingdom		4,187,786		—		—		4,187,786
Switzerland		—		4,047,534		—		4,047,534
Japan		—		3,753,691		—		3,753,691
France		3,682,831		—		—		3,682,831
Canada		2,587,968		—		—		2,587,968
Hong Kong		2,183,181		—		—		2,183,181
Germany		1,889,615		—		—		1,889,615
China		1,674,314		—		—		1,674,314
Other Countries		7,120,522		1,660,751		—		8,781,273
Mutual Funds		503,401		—		—		503,401
Total		$73,369,835		$9,461,976		$—		$82,831,811

For further information regarding security characteristics, see the Portfolio of Investments.

MFS Global Research Portfolio

Notes to Financial Statements – continued

lending agent will, for the benefit of the fund, either purchase securities identical to those loaned or, when such purchase is commercially impracticable, pay the fund the market value of the loaned securities. In return, the lending agent assumes the fund’s rights to the related collateral. If the collateral value is less than the cost to purchase identical securities, the lending agent is responsible for the shortfall, but only to the extent that such shortfall is not due to a decline in collateral value resulting from collateral reinvestment for which the fund bears the risk of loss. A portion of the income generated upon investment of the collateral is remitted to the Borrowers, and the remainder is allocated between the fund and the lending agent. On loans collateralized by U.S. Treasury and/or federal agency obligations, a fee is received from the Borrower, and is allocated between the fund and the lending agent. Income from securities lending is separately reported in the Statement of Operations. The dividend and interest income earned on the securities loaned is accounted for in the same manner as other dividend and interest income. At December 31, 2018, there were no securities on loan or collateral outstanding.

Book/tax differences primarily relate to partnership adjustments.

The tax character of distributions declared to shareholders for the last two fiscal years is as follows:


	Year ended 12/31/18		Year ended 12/31/17
Ordinary income (including any short-term capital gains)		$952,020		$1,601,030
Long-term capital gains		5,703,014		—
Total distributions		$6,655,034		$1,601,030

MFS Global Research Portfolio

Notes to Financial Statements – continued

The federal tax cost and the tax basis components of distributable earnings were as follows:


As of 12/31/18

Cost of investments	$76,833,691
Gross appreciation	13,696,434
Gross depreciation	(7,698,314	)
Net unrealized appreciation (depreciation)	$5,998,120

Undistributed ordinary income	1,132,643
Undistributed long-term capital gain	7,435,745
Other temporary differences	128,069


	From net investment income				From net realized gain

	Year ended 12/31/18		Year ended 12/31/17		Year ended 12/31/18		Year ended 12/31/17
Initial Class		$905,232		$1,502,165		$5,317,564		$—
Service Class		46,788		98,865		385,450		—
Total		$952,020		$1,601,030		$5,703,014		$—

(3)

Transactions with Affiliates


Up to $300 million			0.75%
In excess of $300 million			0.675%

MFS has agreed in writing to reduce its management fee by a specified amount if certain MFS mutual fund assets exceed thresholds agreed to by MFS and the fund’s Board of Trustees. For the year ended December 31, 2018, this management fee reduction amounted to $9,386, which is included in the reduction of total expenses in the Statement of Operations. The management fee incurred for the year ended December 31, 2018 was equivalent to an annual effective rate of 0.74% of the fund’s average daily net assets.

Effective August 1, 2018, the investment adviser has agreed in writing to pay a portion of the fund’s total annual operating expenses, excluding interest, taxes, extraordinary expenses, brokerage and transaction costs, and investment-related expenses, such that total annual operating expenses do not exceed 0.85% of average daily net assets for the Initial Class shares and 1.10% of average daily net assets for the Service Class shares. This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until April 30, 2020. For the period from August 1, 2018 through December 31, 2018, this reduction amounted to $35,162, which is included in the reduction of total expenses in the Statement of Operations.

Shareholder Servicing Agent– MFS Service Center, Inc. (MFSC), a wholly-owned subsidiary of MFS, receives a fee from the fund for its services as shareholder servicing agent. For the year ended December 31, 2018, the fee was $2,246, which equated to 0.0023% annually of the fund’s average daily net assets. MFSC also receives payment from the fund forout-of-pocket expenses paid by MFSC on behalf of the fund. For the year ended December 31, 2018, these costs amounted to $116.

MFS Global Research Portfolio

Notes to Financial Statements – continued

Other– This fund and certain other funds managed by MFS (the funds) have entered into a service agreement (the ISO Agreement) which provides for payment of fees solely by the funds to Tarantino LLC in return for the provision of services of an Independent Senior Officer (ISO) for the funds. Frank L. Tarantino serves as the ISO and is an officer of the funds and the sole member of Tarantino LLC. The funds can terminate the ISO Agreement with Tarantino LLC at any time under the terms of the ISO Agreement. For the year ended December 31, 2018, the fee paid by the fund under this agreement was $168 and is included in “Miscellaneous” expense in the Statement of Operations. MFS has agreed to bear all expenses associated with office space, other administrative support, and supplies provided to the ISO.

The fund is permitted to engage in purchase and sale transactions with funds and accounts for which MFS serves as investment adviser orsub-adviser (“cross-trades”) pursuant to a policy adopted by the Board of Trustees. This policy has been designed to ensure that cross-trades conducted by the fund comply with Rule17a-7 under the Investment Company Act of 1940. During the year ended December 31, 2018, the fund engaged in purchase and sale transactions pursuant to this policy, which amounted to $124,156 and $751,091, respectively. The sales transactions resulted in net realized gains (losses) of $181,875.

(4)

Portfolio Securities

For the year ended December 31, 2018, purchases and sales of investments, other than short-term obligations, aggregated $21,261,188 and $35,211,085, respectively.

(5)

Shares of Beneficial Interest

The 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:


	Year ended 12/31/18						Year ended 12/31/17
	Shares			Amount			Shares			Amount
Shares sold
Initial Class		21,167			$662,568			26,267			$775,526
Service Class		13,000			400,637			7,463			214,891
		34,167			$1,063,205			33,730			$990,417
Shares issued to shareholders in reinvestment of distributions
Initial Class		199,449			$6,222,796			51,146			$1,502,165
Service Class		13,898			432,238			3,377			98,865
		213,347			$6,655,034			54,523			$1,601,030
Shares reacquired
Initial Class		(457,412	)		$(14,510,661	)		(528,496	)		$(15,420,190	)
Service Class		(52,984	)		(1,667,012	)		(69,314	)		(2,011,438	)
		(510,396	)		$(16,177,673	)		(597,810	)		$(17,431,628	)
Net change
Initial Class		(236,796	)		$(7,625,297	)		(451,083	)		$(13,142,499	)
Service Class		(26,086	)		(834,137	)		(58,474	)		(1,697,682	)
		(262,882	)		$(8,459,434	)		(509,557	)		$(14,840,181	)

(6)

Line of Credit

MFS Global Research Portfolio

Notes to Financial Statements – continued

of the committed line of credit, is allocated among the participating funds. In addition, the 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, at a rate equal to the Overnight Bank Funding rate plus an agreed upon spread. For the year ended December 31, 2018, the fund’s commitment fee and interest expense were $573 and $0, respectively, and are included in “Miscellaneous” expense in the Statement of Operations.

(7)

Investments in Affiliated Issuers


Affiliated Issuers		Beginning Shares/Par Amount			Acquisitions Shares/Par Amount		Dispositions Shares/Par Amount			Ending Shares/Par Amount
MFS Institutional Money Market Portfolio			477,596			16,614,705		(16,588,850	)		503,451

Affiliated Issuers	Realized Gain (Loss)	Change in Unrealized Appreciation/ Depreciation			Capital Gain Distributions		Dividend Income			Ending Value
MFS Institutional Money Market Portfolio	$(74)		$(1	)		$—		$10,426			$503,401

MFS Global Research Portfolio

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees of MFS Variable Insurance Trust II and the Shareholders of MFS Global Research Portfolio:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities of MFS Global Research Portfolio (the “Fund”), including the portfolio of investments, as of December 31, 2018, the related statement 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of December 31, 2018, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

DELOITTE & TOUCHE LLP

Boston, Massachusetts

February 15, 2019

We have served as the auditor of one or more of the MFS investment companies since 1924.

MFS Global Research Portfolio

TRUSTEES AND OFFICERS – IDENTIFICATION AND BACKGROUND


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds overseen by the Trustee	Principal Occupations During the Past Five Years	Other Directorships During the Past Five Years (j)
INTERESTED TRUSTEES
Robert J. Manning (k) (age 55)	Trustee	February 2004	135	Massachusetts Financial Services Company, Executive Chairman (since January 2017); Director; Chairman of the Board; Chief Executive Officer (until 2015);Co-Chief Executive Officer(2015-2016)	N/A

Robin A. Stelmach (k) (age 57)	Trustee	January 2014	135	Massachusetts Financial Services Company, Vice Chair (since January 2017); Chief Operating Officer and Executive Vice President (until January 2017)	N/A

INDEPENDENT TRUSTEES
John P. Kavanaugh (age 64)	Trustee and Chair of Trustees	January 2009	135	Private investor	N/A

Steven E. Buller (age 67)	Trustee	February 2014	135	Financial Accounting Standards Advisory Council, Chairman(2014-2015); Public Company Accounting Oversight Board, Standing Advisory Group, Member (until 2014); BlackRock, Inc. (investment management), Managing Director (until 2014), BlackRock Finco UK (investment management), Director (until 2014)	N/A

John A. Caroselli (age 64)	Trustee	March 2017	135	JC Global Advisors, LLC (management consulting), President (since 2015); First Capital Corporation (commercial finance), Executive Vice President (until 2015)	N/A

Maureen R. Goldfarb (age 63)	Trustee	January 2009	135	Private investor	N/A

Michael Hegarty (age 74)	Trustee	December 2004	135	Private investor	Rouse Properties Inc., Director (until 2016); Capmark Financial Group Inc., Director (until 2015)

Peter D. Jones (age 63)	Trustee	January 2019	135	Franklin Templeton Distributors, Inc. (investment management), President (until 2015); Franklin Templeton Institutional, LLC (investment management), Chairman (until 2015)	N/A

James W. Kilman, Jr. (age 57)	Trustee	January 2019	135	KielStrand Capital LLC (family office and merchant bank), Chief Executive Officer (since 2016); Morgan Stanley & Co. (financial services), Vice Chairman of Investment Banking,Co-Head of Diversified Financials Coverage – Financial Institutions Investment Banking Group (until 2016)	alpha-En Corporation, Director (since 2016)

MFS Global Research Portfolio

Trustees and Officers – continued


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds overseen by the Trustee	Principal Occupations During the Past Five Years	Other Directorships During the Past Five Years (j)
Clarence Otis, Jr. (age 62)	Trustee	March 2017	135	Darden Restaurants, Inc., Chief Executive Officer (until 2014)	VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director; Federal Reserve Bank of Atlanta, Director (until 2015)

Maryanne L. Roepke (age 62)	Trustee	May 2014	135	American Century Investments (investment management), Senior Vice President and Chief Compliance Officer (until 2014)	N/A

Laurie J. Thomsen (age 61)	Trustee	March 2005	135	Private investor	The Travelers Companies, Director; Dycom Industries, Inc., Director (since 2015)


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds for which the Person is an Officer	Principal Occupations During the Past Five Years
OFFICERS
Christopher R. Bohane (k) (age 45)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Vice President and Assistant General Counsel

Kino Clark (k) (age 50)	Assistant Treasurer	January 2012	135	Massachusetts Financial Services Company, Vice President

John W. Clark, Jr. (k) (age 51)	Assistant Treasurer	April 2017	135	Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head – Treasurer’s Office (until February 2017)

Thomas H. Connors (k) (age 59)	Assistant Secretary and Assistant Clerk	September 2012	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Ethan D. Corey (k) (age 55)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel

David L. DiLorenzo (k) (age 50)	President	July 2005	135	Massachusetts Financial Services Company, Senior Vice President

Heidi W. Hardin (k) (age 51)	Secretary and Clerk	April 2017	135	Massachusetts Financial Services Company, Executive Vice President and General Counsel (since March 2017); Harris Associates (investment management), General Counsel (from September 2015 to January 2017); Janus Capital Management LLC (investment management), Senior Vice President and General Counsel (until September 2015)

Brian E. Langenfeld (k) (age 45)	Assistant Secretary and Assistant Clerk	June 2006	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Amanda S. Mooradian (k) (age 39)	Assistant Secretary and Assistant Clerk	September 2018	135	Massachusetts Financial Services Company, Assistant Vice President and Counsel

Susan A. Pereira (k) (age 48)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Kasey L. Phillips (k) (age 48)	Assistant Treasurer	September 2012	135	Massachusetts Financial Services Company, Vice President

Matthew A. Stowe (k) (age 44)	Assistant Secretary and Assistant Clerk	October 2014	135	Massachusetts Financial Services Company, Vice President and Assistant General Counsel

MFS Global Research Portfolio

Trustees and Officers – continued


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds for which the Person is an Officer	Principal Occupations During the Past Five Years
Frank L. Tarantino (age 74)	Independent Senior Officer	June 2004	135	Tarantino LLC (provider of compliance services), Principal

Richard S. Weitzel (k) (age 48)	Assistant Secretary and Assistant Clerk	October 2007	135	Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel

Martin J. Wolin (k) (age 51)	Chief Compliance Officer	July 2015	135	Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer (since July 2015); Mercer (financial service provider), Chief Risk and Compliance Officer, North America and Latin America (until June 2015)

James O. Yost (k) (age 58)	Treasurer	September 1990	135	Massachusetts Financial Services Company, Senior Vice President

(h)

(j)	Directorships or trusteeships of companies required to report to the Securities and Exchange Commission (i.e., “public companies”).

(k)

Messrs. Buller, Hegarty, Kilman and Otis and Ms. Roepke are members of the Trust’s Audit Committee.

Each of the Interested Trustees and certain Officers hold comparable officer positions with certain affiliates of MFS.

The Statement of Additional Information for a Fund includes further information about the Trustees and is available without charge upon request by calling1-800-225-2606.


Investment Adviser Massachusetts Financial Services Company 111 Huntington Avenue Boston, MA 02199-7618		Custodian State Street Bank and Trust Company 1 Lincoln Street Boston, MA 02111-2900
Distributor MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618		Independent Registered Public Accounting Firm Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116
Portfolio Manager(s) James Keating Joseph MacDougall

MFS Global Research Portfolio

BOARD REVIEW OF INVESTMENT ADVISORY AGREEMENT

Based on information provided by Broadridge and MFS, the Trustees reviewed the Fund’s total return investment performance as well as the Broadridge performance universe over various time periods. The Trustees placed particular emphasis on the total return performance of the Fund’s Initial Class shares in comparison to the performance of funds in its Broadridge performance universe over the three-year period ended December 31, 2017, which the Trustees believed was a long enough period to reflect differing market conditions. The total return performance of the Fund’s Initial Class shares was in the 5th quintile relative to the other funds in the universe for this three-year period (the 1st quintile being the best performers and the 5th quintile being the worst performers). The total return performance of the Fund’s Initial Class shares was in the 5th quintile for each of theone- and five-year periods ended December 31, 2017 relative to the Broadridge performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.

MFS Global Research Portfolio

Board Review of Investment Advisory Agreement – continued

investment performance were sufficient to support approval of the continuance of the investment advisory agreement for an additionalone-year period, but that they would continue to closely monitor the performance of the Fund.

In assessing the reasonableness of the Fund’s advisory fee, the Trustees considered, among other information, the Fund’s advisory fee and the total expense ratio of the Fund’s Initial Class shares as a percentage of average daily net assets and the advisory fee and total expense ratios of peer groups of funds based on information provided by Broadridge. The Trustees considered that, according to the data provided by Broadridge (which takes into account any fee reductions or expense limitations that were in effect during the Fund’s last fiscal year), the Fund’s effective advisory fee rate and total expense ratio were each higher than the Broadridge expense group median. The Trustees also noted that MFS has agreed to implement an expense limitation for the Fund effective August 1, 2018, which may not be changed without the Trustees’ approval.

The Trustees also considered whether the Fund may benefit from any economies of scale in the management of the Fund in the event of growth in assets of the Fund and/or growth in assets of the MFS Funds as a whole. They noted that the Fund’s advisory fee rate schedule is subject to a contractual breakpoint that reduces the Fund’s advisory fee rate on average daily net assets over $300 million. The Trustees also noted that MFS has agreed in writing to waive a portion of the management fees of certain MFS Funds, including the Fund, if the total combined assets of certain funds within the MFS Funds’ complex increase above agreed upon thresholds (the “group fee waiver”), enabling the Fund’s shareholders to share in the benefits from any economies of scale at the complex level. The group fee waiver is reviewed and renewed annually between the Board and MFS. The Trustees concluded that the breakpoint and the group fee waiver were sufficient to allow the Fund to benefit from economies of scale as its assets and overall complex assets grow.

MFS Global Research Portfolio

PROXY VOTING POLICIES AND INFORMATION

QUARTERLY PORTFOLIO DISCLOSURE

The fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website athttp://www.sec.gov. A shareholder can obtain the portfolio holdings report for the first and third quarters of the fund’s fiscal year atmfs.com/vit2 by choosing the fund’s name and then selecting the “Resources” tab and clicking on “Prospectus and Reports”.

FURTHER INFORMATION

INFORMATION ABOUT FUND CONTRACTS AND LEGAL CLAIMS

FEDERAL TAX INFORMATION (unaudited)

The following information is provided pursuant to provisions of the Internal Revenue Code.

The fund designates $6,274,000 as capital gain dividends paid during the fiscal year.

For corporate shareholders, 70.98% of the ordinary income dividends paid during the fiscal year qualify for the corporate dividends received deduction.

rev. 3/16



FACTS		WHAT DOES MFS DO WITH YOUR PERSONAL INFORMATION?


Why?		Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.

What?

The types of personal information we collect and share depend on the product or service you have with us. This information can include:

• Social Security number and account balances

• Account transactions and transaction history

• Checking account information and wire transfer instructions

When you areno longer our customer, we continue to share your information as described in this notice.


How?		All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons MFS chooses to share; and whether you can limit this sharing.


Reasons we can share your personal information	Does MFS share?	Can you limit this sharing?
For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes – to offer our products and services to you	No	We don’t share
For joint marketing with other financial companies	No	We don’t share
For our affiliates’ everyday business purposes – information about your transactions and experiences	No	We don’t share
For our affiliates’ everyday business purposes – information about your creditworthiness	No	We don’t share
For nonaffiliates to market to you	No	We don’t share



Questions?		Call800-225-2606 or go tomfs.com.


Page 2


Who we are
Who is providing this notice?		MFS Funds, MFS Investment Management, MFS Institutional Advisors, Inc., and MFS Heritage Trust Company.


What we do
How does MFS protect my personal information?		To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include procedural, electronic, and physical safeguards for the protection of the personal information we collect about you.
How does MFS collect my personal information?		We collect your personal information, for example, when you • open an account or provide account information • direct us to buy securities or direct us to sell your securities • make a wire transfer We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can’t I limit all sharing?		Federal law gives you the right to limit only • sharing for affiliates’ everyday business purposes – information about your creditworthiness • affiliates from using your information to market to you • sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing.


Definitions
Affiliates		Companies related by common ownership or control. They can be financial and nonfinancial companies. • MFS does not share personal information with affiliates, except for everyday business purposes as described on page one of this notice.
Nonaffiliates		Companies not related by common ownership or control. They can be financial and nonfinancial companies. • MFS does not share with nonaffiliates so they can market to you.
Joint marketing		A formal agreement between nonaffiliated financial companies that together market financial products or services to you. • MFS doesn’t jointly market.


Other important information
If you own an MFS product or receive an MFS service in the name of a third party such as a bank or broker-dealer, their privacy policy may apply to you instead of ours.

LOGO

Annual Report

December 31, 2018

LOGO

MFS^® Global Tactical Allocation Portfolio

LOGO

MFS^® Variable Insurance Trust II

WTS-ANN

MFS® Global Tactical Allocation Portfolio

CONTENTS

The report is prepared for the general information of contract owners. 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 OR CREDIT UNION GUARANTEE• NOT A DEPOSIT• NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY OR NCUA/NCUSIF

MFS Global Tactical Allocation Portfolio

LETTER FROM THE EXECUTIVE CHAIRMAN

LOGO

Dear Contract Owners:

Respectfully,

LOGO

Robert J. Manning

Executive Chairman

MFS Investment Management

February 15, 2019

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

MFS Global Tactical Allocation Portfolio

PORTFOLIO COMPOSITION

Portfolio Structure


				Tactical Overlay (b)
		Active Security Selection (a)		Long		Short		Net Market Exposure (c)
Fixed Income	U.S.		27.3%		13.4%		(8.3)%		32.4%
	Europeex-U.K.		11.0%		3.0%		0.0%		14.0%
	Asia/Pacificex-Japan		1.4%		7.7%		0.0%		9.1%
	Japan		5.1%		0.0%		(1.2)%		3.9%
	Emerging Markets		3.7%		0.0%		0.0%		3.7%
	United Kingdom		2.8%		0.0%		(0.4)%		2.4%
	Supranational		0.8%		0.0%		0.0%		0.8%
	North Americaex-U.S.		4.6%		0.0%		(10.2)%		(5.6)%
	Total		56.7%		24.1%		(20.1)%		60.7%
Equity	U.S. Large Cap		15.7%		0.0%		(2.0)%		13.7%
	Europeex-U.K.		6.3%		8.8%		(4.4)%		10.7%
	United Kingdom		2.2%		4.1%		0.0%		6.3%
	Emerging Markets		1.7%		8.4%		(5.4)%		4.7%
	Asia/Pacificex-Japan		0.4%		2.7%		(0.1)%		3.0%
	Japan		2.3%		0.0%		(1.9)%		0.4%
	North Americaex-U.S.		1.2%		0.0%		(1.7)%		(0.5)%
	U.S. Small/Mid Cap		1.1%		0.0%		(3.6)%		(2.5)%
	Total		30.9%		24.0%		(19.1)%		35.8%
Real Estate-related	Non-U.S.		0.8%		0.0%		0.0%		0.8%
	U.S.		0.4%		0.0%		0.0%		0.4%
	Total		1.2%		0.0%		0.0%		1.2%
Fixed Income (inflation-adjusted)	U.S.		0.7%		0.0%		0.0%		0.7%
	Total		0.7%		0.0%		0.0%		0.7%
Cash	Cash & Cash Equivalents (d)								4.8%
	Other (e)								(3.2)%
	Total								1.6%
	Total Net Exposure Summary								100.0%


Strategic Allocation Targets & Net Exposure Ranges
Asset Class	Target (w)	Ranges (z)
Equities	35%	0 to 70%
Fixed Income, Cash and Cash Equivalents	65%	30 to 100%


Top ten holdings (c)
U.S. Treasury Note 5 yr Future – MAR 2019			11.2%
Australian Treasury Bond 10 yr Future – MAR 2019			7.7%
U.S. Treasury Note 2 yr Future – MAR 2019			4.2%
FTSE 100 Index Future – MAR 2019			4.1%
OMX Index Future – JAN 2019			4.0%
MSCI Taiwan Index Future – JAN 2019			3.2%
Government of Japan, 0.5%, 6/20/2038			2.8%
BIST 30 Index Future – FEB 2019			2.8%
U.S. Treasury Note 10 yr Future – MAR 2019			(7.9)%
Canadian Treasury Bond 10 yr Future – MAR 2019			(10.2)%

MFS Global Tactical Allocation Portfolio

Portfolio Composition – continued

(a)

Represents the actively managed portion of the portfolio and for purposes of this presentation, components include the value of securities, less any securities sold short. The bond component will include any accrued interest amounts. This also reflects the equivalent exposure of certain derivative positions. These amounts may be negative from time to time.

(b)

Represents the tactical overlay portion of the portfolio which is how the fund manages its exposure to markets and currencies through the use of derivative positions. Percentages reflect the equivalent exposure of those derivative positions.

(c)

For purposes of this presentation, the components include the value of securities, less any securities sold short, and reflect the impact of the equivalent exposure of all derivative positions. These amounts may be negative from time to time. The bond component will include any accrued interest amounts.

(d)

Cash & Cash Equivalents includes any cash, investments in money market funds, short term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.

(e)

Other includes currency derivatives and/or the offsetting of the leverage produced by the fund’s derivative positions, including payables and/or receivables of the finance leg of interest rate swaps and the unrealized gain or loss in connection with forward currency exchange contracts.

(w)

The strategic asset class allocations have been selected for investment over longer time periods. The actual strategic asset class weightings can deviate due to market movements and cash flows.

(z)

The fund’s net exposures to the asset classes referenced will normally fall within these ranges after taking into account the tactical overlay.

Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The value of derivatives may be different.

Where the fund holds convertible bonds, they are treated as part of the equity portion of the portfolio.

Percentages are based on net assets as of December 31, 2018.

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

MFS Global Tactical Allocation Portfolio

MANAGEMENT REVIEW

Summary of Results

For the twelve months ended December 31, 2018, Initial Class shares of the MFS Global Tactical Allocation Portfolio (“fund”) provided a total return of –4.50%, while Service Class shares of the fund provided a total return of –4.80%. These compare with a return of –1.20% over the same period for the fund’s benchmark, the Bloomberg Barclays Global Aggregate Bond Index. The fund’s other benchmarks, the MSCI World Index (net div) and the MFS Global Tactical Allocation Blended Index (“Blended Index”), generated total returns of –8.71% and –2.11%, respectively. The Blended Index reflects the blended returns of equity and fixed income indices, with percentage allocations to each index designed to resemble the strategic allocations of the fund. The market indices and related percentage allocations used to compile the Blended Index are set forth in the Performance Summary.

The fund’s investment objective is to seek total return. MFS seeks to achieve the fund’s objective by generating returns from a combination of (1) individual security selection of a combination of debt instruments and equity securities and (2) a tactical asset allocation overlay primarily using derivative instruments to manage the fund’s exposure to asset classes (e.g. equity and fixed income), markets (e.g. U.S. and foreign countries), and currencies (e.g. U.S. dollar and Japanese yen). Derivatives include futures, forward contracts, options, structured securities and swaps.

Market Environment

Detractors from Performance

Within the equity portion of the fund, stock selection in theconsumer staples,information technology andconsumer discretionary sectors held back performance relative to the MSCI World Index. Within theconsumer staples sector, overweight positions in tobacco company Philip Morris International and global food company General Mills, as well as the timing of the fund’s ownership in shares of household products maker Procter & Gamble (h), weakened relative results. Within theinformation technology sector, not holding shares of strong-performing software giant Microsoft hindered relative returns. Within theconsumer discretionary sector, not holding shares of internet retailer Amazon.com dampened relative performance as the stock outpaced the benchmark over the reporting period.

Stocks in other sectors that weighed on relative results included the fund’s overweight positions in pharmaceutical company Bayer (Germany), oil field services company Schlumberger, investment management and banking firm UBS (Switzerland) and telecommunications company Vodafone Group (United Kingdom). The timing of the fund’s ownership in shares of pharmaceutical firm Merck & Co. (h) also held back relative performance.

Within the fixed income portion of the fund, currency hedging detracted from performance relative to the Bloomberg Barclays Global Aggregate Bond Index. The fund’s asset allocation decisions also weakened relative returns. Specifically, from a quality perspective, an underweight exposure to “AAA” and “A” rated (r) bonds weighed on relative results. From a sector perspective, the fund’s overweight exposures to thefinancials, utilities andindustrials sectors hindered relative returns.

MFS Global Tactical Allocation Portfolio

Management Review – continued

The fund’s tactical overlay detracted from absolute performance, led by its allocation to both Asia Pacific and Emerging Markets equities, via equity index futures, particularly, its long exposures to Hong Kong and Turkey and short exposure to India. A short exposure to the Canadian fixed income market, via fixed income index futures, also slightly weighed on relative returns. Lastly, from a currency perspective, the fund’s long exposure to the Norwegian krone dampened relative results.

Contributors to Performance

Within the equity portion of the fund, stock selection in thematerials,industrials andfinancials sectors strengthened relative performance. Although security selection in thematerials sector supported relative returns, there were no individual stocks within this sector that were among the fund’s top relative contributors during the reporting period. Within theindustrials sector, not owning shares of poor-performing industrial conglomerate General Electric helped relative results. Within thefinancials sector, an overweight position in risk management and human capital consulting services provider Aon benefited relative performance as the stock outpaced the benchmark.

Elsewhere, the fund’s overweight positions in pharmaceutical giant Pfizer, pharmaceutical and medical products maker Abbott Laboratories, utility services provider Exelon, seafood company Mowi (h) (Norway), office and consumer paper products manufacturer Kimberly-Clark, medical device maker Medtronic and pharmaceutical company Eli Lilly supported relative returns. Not holding shares of poor-performing social media company Facebook also helped relative results as the stock lagged the benchmark during the reporting period.

Within the fixed income portion of the fund, yield curve (y) positioning, notably the fund’s shorter duration (d) exposure in the US, where interest rates generally rose, supported relative returns. Additionally, the fund’s active currency positioning was a modestly positive contributor during the reporting period.

Within the fund’s tactical overlay, the fund’s allocation to Brazilian equity markets had the largest positive impact on relative returns. The fund’s allocation to Europeex-UK and North American equity markets also helped absolute returns, most notably, its short exposure to German and Spanish equity markets, and to US small-capitalization stocks. Long exposures to the fixed income markets of Germany and Australia, as well as yield curve positioning within the U.S., further strengthened results. From a currency perspective, short exposures to both the euro and Swiss franc benefited the fund’s performance.

Respectfully,

Portfolio Manager(s)

Nevin Chitkara, Pilar Gomez-Bravo, Steven Gorham, Vipin Narula, Ben Nastou, Robert Persons, Jonathan Sage, Natalie Shapiro, Robert Spector, and Erik Weisman

(d)	Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value.

(h)	Security was not held in the portfolio at period end.

(r)

Bonds rated “BBB”, “Baa”, or higher are considered investment grade; bonds rated “BB”, “Ba”, or below are considerednon-investment grade. The sources for bond quality ratings are Moody’s Investors Service, Standard & Poor’s and Fitch, Inc. and are applied using the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). For securities which are not rated by any of the three agencies, the security is considered Not Rated.

(y)	A yield curve graphically depicts the yields of different maturity bonds of the same credit quality and type; a normal yield curve is upward sloping, with short-term rates lower than long-term rates.

Note to Shareholders: Effective June 30, 2018, Pablo De La Mata, Richard Hawkins, and Benjamin Stone are no longer Portfolio Managers of the Fund. Effective February 1, 2019, Andrew Li became a Portfolio Manager of the Fund.

MFS Global Tactical Allocation Portfolio

PERFORMANCE SUMMARY THROUGH 12/31/18

Growth of a Hypothetical $10,000 Investment

LOGO

Total Returns through 12/31/18

Average annual total returns


	Share Class	Class Inception Date	1-yr	5-yr	10-yr
	Initial Class	11/07/94	(4.50)%	2.81%	5.39%
	Service Class	8/24/01	(4.80)%	2.55%	5.11%

Comparative benchmark(s)
	Bloomberg Barclays Global Aggregate Bond Index (f)		(1.20)%	1.08%	2.49%
	MFS Global Tactical Allocation Blended Index (f)(w)		(2.11)%	3.72%	5.91%
	Bloomberg Barclays Global Aggregate Bond Index Hedged (f)		1.76%	3.44%	3.78%
	MSCI World Index (net div) (f)		(8.71)%	4.56%	9.67%

(f)

Source: FactSet Research Systems Inc.

(w)

As of December, 31, 2018, MFS Global Tactical Allocation Blended Index was comprised of 35% MSCI World Index (net div), 54% Bloomberg Barclays Global Aggregate Bond Index Hedged, and 11% Bloomberg Barclays Global Aggregate Bond Index.

Benchmark Definition(s)

Bloomberg Barclays Global Aggregate Bond Index – provides a broad-based measure of the global investment-grade fixed income markets. The three major components of this index are the U.S. Aggregate, the Pan-European Aggregate, and the Asian-Pacific Aggregate Indices. The index also includes Eurodollar and Euro-Yen corporate bonds, Canadian government, agency and corporate securities, and USD investment grade 144A securities.

Bloomberg Barclays Global Aggregate Bond Index Hedged – provides a broad-based measure of the currency-hedged performance of global investment-grade fixed income markets. The three major components of this index are the U.S. Aggregate, thePan-European Aggregate, and the Asian-Pacific Aggregate Indices. The index also includes Eurodollar and Euro-Yen corporate bonds, Canadian government, agency and corporate securities, and USD investment grade 144A securities.

MSCI World Index (net div) – a market capitalization-weighted index that is designed to measure equity market performance in the global developed markets.

MFS Global Tactical Allocation Portfolio

Performance Summary – continued

It is not possible to invest directly in an index.

Notes to Performance Summary

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

Performance information prior to February 8, 2010 reflects time periods when the fund (i) had a policy of investing between 40% and 75% of its assets in equity securities and at least 25% of its assets in fixed income senior securities and (ii) did not employ a tactical asset allocation overlay. The fund’s investment policies and strategies changed effective February 8, 2010.

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

MFS Global Tactical Allocation Portfolio

EXPENSE TABLE

Fund Expenses Borne by the Contract Holders during the Period,

July 1, 2018 through December 31, 2018

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period July 1, 2018 through December 31, 2018.

Actual Expenses

Hypothetical Example for Comparison Purposes


Share Class		Annualized Expense Ratio		Beginning Account Value 7/01/18		Ending Account Value 12/31/18		Expenses Paid During Period (p) 7/01/18-12/31/18
Initial Class	Actual		0.81%		$1,000.00		$981.16		$4.04
Initial Class	Hypothetical (h)		0.81%		$1,000.00		$1,021.12		$4.13
Service Class	Actual		1.06%		$1,000.00		$979.81		$5.29
Service Class	Hypothetical (h)		1.06%		$1,000.00		$1,019.86		$5.40

(h)	5% class return per year before expenses.

(p)	“Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect theone-half year period).

Notes to Expense Table

Expense ratios include 0.03% of interest expense on uncovered collateral or margin obligations with the broker (See Note 2 of the Notes to Financial Statements) that are outside of the expense limitation arrangement (See Note 3 of the Notes to Financial Statements).

MFS Global Tactical Allocation Portfolio

PORTFOLIO OF INVESTMENTS – 12/31/18

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



Issuer	Shares/Par		Value ($)
BONDS – 63.4%
Aerospace – 0.3%
Huntington Ingalls Industries, Inc., 3.483%, 12/01/2027	$	370,000	$	344,629
L3 Technologies, Inc., 3.85%, 6/15/2023		555,000		555,829
Lockheed Martin Corp., 3.55%, 1/15/2026		749,000		743,585
Rolls-Royce Holdings PLC, 0.875%, 5/09/2024	EUR	400,000		443,000

			$	2,087,043

Apparel Manufacturers – 0.1%
Coach, Inc., 4.125%, 7/15/2027	$	493,000	$	461,550

Asset-Backed & Securitized – 2.9%
Chesapeake Funding II LLC,2016-1A, “A2”, FLR, 3.605% (LIBOR - 1mo. + 1.15%), 3/15/2028 (n)	$	451,928	$	452,778
Chesapeake Funding II LLC,2016-2A, “A2”, FLR, 3.455% (LIBOR - 1mo. + 1%), 6/15/2028 (z)		469,764		470,944
CPS Auto Trust,2016-D, “B”, 2.11%, 3/15/2021 (n)		813,126		810,737
Dryden Senior Loan Fund,2013-26A, “AR”, CLO, FLR, 3.336% (LIBOR - 3mo. + 0.9%), 4/15/2029 (z)		1,292,000		1,275,881
Dryden Senior Loan Fund,2018-55A, “A1”, CLO, FLR, 3.456% (LIBOR - 3mo. + 1.02%), 4/15/2031 (n)		2,040,000		2,010,465
Flatiron CLO Ltd.,2013-1A, “A2R”, FLR, 4.098% (LIBOR - 3mo. + 1.65%), 1/17/2026 (n)		1,991,841		1,989,823
Fort Cre LLC,2018-1A, “A1”, FLR, 3.829% (LIBOR - 1mo. + 1.2%), 10/21/2023 (n)		584,500		581,444
JPMBB Commercial Mortgage Securities Trust,2014-C26, 3.494%, 1/15/2048		2,570,000		2,572,813
Kref Ltd.,2018-FL1, “A”, FLR, 3.402% (LIBOR - 1mo. + 1.1%), 6/15/2036 (z)		773,500		773,486
Magnetite CLO Ltd.,2012-7A, “A1R2”, FLR, 3.236% (LIBOR - 3mo. + 0.8%), 1/15/2028 (n)		1,398,000		1,371,857
Morgan Stanley Capital I Trust,2017-H1, “A5”, 3.53%, 6/15/2050		659,762		652,578
Octagon Investment Partners XVII Ltd.,2013-1A, “BR2”, FLR, 3.889% (LIBOR - 3mo. + 1.4%), 1/25/2031 (n)		2,275,000		2,183,500
Wells Fargo Commercial Mortgage Trust,2015-C28, “A4”, 3.54%, 5/15/2048		2,271,943		2,274,389

			$	17,420,695



Issuer	Shares/Par		Value ($)
BONDS – continued
Automotive – 0.7%
Ferrari N.V., 1.5%, 3/16/2023	EUR	1,100,000	$	1,260,158
General Motors Co., 6.75%, 4/01/2046	$	312,000		302,364
General Motors Financial Co., Inc., 4.35%, 1/17/2027		565,000		520,316
Lear Corp., 3.8%, 9/15/2027		416,000		380,215
Volkswagen Bank GmbH, 0.75%, 6/15/2023	EUR	550,000		607,242
Volkswagen Financial Services AG, 0.875%, 4/12/2023		500,000		556,682
Volkswagen International Finance N.V., 2.7% to 12/14/2022, FLR (EUR Swap Rate - 5yr. + 2.54%) to 12/14/2027, FLR (EUR Swap Rate - 5yr. + 2.79%) to 12/14/2042, FLR (EUR Swap Rate - 5yr. + 3.54%) to 12/31/2099		400,000		432,062
Volkswagen International Finance N.V., 3.375% to 6/27/2024, FLR (EUR Swap Rate - 6yr. + 2.97%) to 6/27/2028, FLR (EUR Swap Rate - 6yr. + 2.22%) to 6/27/2044, FLR (EUR Swap Rate - 6yr. + 3.97%) to 12/31/2099		400,000		428,510

			$	4,487,549

Banks & Diversified Financials (Covered Bonds) – 0.1%
CaixaBank S.A., 1.125%, 1/12/2023	EUR	500,000	$	560,921

Broadcasting – 0.3%
RELX Finance B.V., 1%, 3/22/2024	EUR	350,000	$	397,676
SES S.A., 1.625%, 3/22/2026		500,000		552,435
WPP Finance, 2.875%, 9/14/2046	GBP	440,000		421,065
WPP Finance 2016 Co., 1.375%, 3/20/2025	EUR	330,000		365,926

			$	1,737,102

Brokerage & Asset Managers – 0.5%
Charles Schwab Corp., 3.85%, 5/21/2025	$	596,000	$	608,195
E*TRADE Financial Corp., 2.95%, 8/24/2022		499,000		484,082
Euroclear Investments S.A., 2.625% to 4/11/2028, FLR (EUR Swap Rate - 5yr. + 2.625%) to 4/11/2048	EUR	300,000		335,132
Intercontinental Exchange, Inc., 3.75%, 12/01/2025	$	831,000		835,026
TD Ameritrade Holding Corp., 2.95%, 4/01/2022		676,000		668,717

			$	2,931,152

Building – 0.2%
Martin Marietta Materials, Inc., 4.25%, 7/02/2024	$	367,000	$	371,407

MFS Global Tactical Allocation Portfolio

Portfolio of Investments – continued



Issuer	Shares/Par		Value ($)
BONDS – continued
Building – continued
Martin Marietta Materials, Inc., 3.45%, 6/01/2027	$	339,000	$	313,296
Martin Marietta Materials, Inc., 3.5%, 12/15/2027		446,000		406,870

			$	1,091,573

Business Services – 0.2%
Fidelity National Information Services, Inc., 3.875%, 6/05/2024	$	179,000	$	178,788
Fidelity National Information Services, Inc., 5%, 10/15/2025		108,000		112,393
Fidelity National Information Services, Inc., 3%, 8/15/2026		758,000		697,700

			$	988,881

Cable TV – 0.3%
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 6.384%, 10/23/2035	$	332,000	$	341,087
Cox Communications, Inc., 3.25%, 12/15/2022 (n)		498,000		486,475
Shaw Communications, Inc., 5.65%, 10/01/2019	CAD	674,000		504,335
Sky PLC, 2.5%, 9/15/2026	EUR	550,000		668,767

			$	2,000,664

Chemicals – 0.3%
Air Liquide Finance Co., 2.25%, 9/27/2023 (n)	$	727,000	$	693,234
International Flavors & Fragrances, Inc., 1.8%, 9/25/2026	EUR	240,000		274,256
Sasol Chemicals (USA) LLC, 5.875%, 3/27/2024	$	694,000		692,490

			$	1,659,980

Computer Software – 0.2%
Microsoft Corp., 4.1%, 2/06/2037	$	824,000	$	847,152
Ubisoft Entertainment S.A., 1.289%, 1/30/2023	EUR	300,000		340,413

			$	1,187,565

Computer Software – Systems – 0.2%
Apple, Inc., 4.5%, 2/23/2036	$	900,000	$	954,325
Apple, Inc., 3.6%, 7/31/2042	GBP	200,000		288,713
Apple, Inc., 4.25%, 2/09/2047	$	225,000		224,539

			$	1,467,577

Conglomerates – 0.2%
Smiths Group PLC, 2%, 2/23/2027	EUR	300,000	$	338,786
United Technologies Corp., 4.45%, 11/16/2038	$	504,000		489,448
United Technologies Corp., 4.625%, 11/16/2048		190,000		183,738
Wabtec Corp., 4.7%, 9/15/2028		355,000		333,138

			$	1,345,110



Issuer	Shares/Par		Value ($)
BONDS – continued
Consumer Products – 0.4%
JAB Holdings B.V., 2%, 5/18/2028	EUR	600,000	$	676,805
JAB Holdings B.V., 2.5%, 6/25/2029		600,000		695,474
Reckitt Benckiser Treasury Services PLC, 3.625%, 9/21/2023 (n)	$	577,000		580,680
Reckitt Benckiser Treasury Services PLC, 3%, 6/26/2027 (n)		425,000		395,140

			$	2,348,099

Consumer Services – 0.5%
Bookings Holdings, Inc., 1.8%, 3/03/2027	EUR	600,000	$	689,739
G4S International Finance PLC, 1.5%, 1/09/2023		400,000		456,908
ManpowerGroup, 1.75%, 6/22/2026		400,000		458,600
Priceline Group, Inc., 3.55%, 3/15/2028	$	356,000		333,489
Visa, Inc., 4.15%, 12/14/2035		585,000		605,652
Visa, Inc., 3.65%, 9/15/2047		390,000		367,710

			$	2,912,098

Electronics – 0.2%
ASML Holding N.V., 1.375%, 7/07/2026	EUR	800,000	$	923,338
Broadcom Corp./Broadcom Cayman Finance Ltd., 3.875%, 1/15/2027	$	471,000		422,814

			$	1,346,152

Emerging Market Quasi-Sovereign – 1.1%
CNPC General Capital Ltd., 3.4%, 4/16/2023 (n)	$	2,183,000	$	2,160,376
Office Cherifien des Phosphates, 6.875%, 4/25/2044 (n)		1,570,000		1,629,660
Petroleos Mexicanos, 1.875%, 4/21/2022	EUR	250,000		269,944
PT Pertamina Persero, 6%, 5/03/2042 (n)	$	2,084,000		2,073,939
PT Perusahaan Listrik Negara, 2.875%, 10/25/2025 (n)	EUR	400,000		454,840

			$	6,588,759

Emerging Market Sovereign – 1.1%
Republic of Hungary, 5.375%, 2/21/2023	$	1,972,000	$	2,087,855
Republic of Indonesia, 2.875%, 7/08/2021 (n)	EUR	500,000		602,091
Republic of Indonesia, 8.25%, 5/15/2029	IDR	42,896,000,000		3,048,692
United Mexican States, 4.6%, 2/10/2048	$	829,000		735,737

			$	6,474,375

Energy – Independent – 0.3%
Tengizchevroil Finance Co. International Ltd., 4%, 8/15/2026 (n)	$	2,260,000	$	2,084,353

Energy – Integrated – 0.1%
Eni S.p.A., 4%, 9/12/2023 (n)	$	322,000	$	317,042

MFS Global Tactical Allocation Portfolio

Portfolio of Investments – continued



Issuer	Shares/Par		Value ($)
BONDS – continued
Financial Institutions – 0.2%
AerCap Ireland Capital Ltd., 3.65%, 7/21/2027	$	973,000	$	843,276
EXOR N.V., 1.75%, 1/18/2028	EUR	450,000		487,344

			$	1,330,620

Food & Beverages – 0.3%
Anheuser-Busch InBev N.V., 1.5%, 4/18/2030	EUR	400,000	$	429,595
Anheuser-Busch InBev Worldwide, Inc., 3.75%, 1/15/2022	$	342,000		342,237
Anheuser-Busch InBev Worldwide, Inc., 4.375%, 4/15/2038		201,000		179,530
Constellation Brands, Inc., 4.4%, 11/15/2025		586,000		587,424
Kraft Heinz Foods Co., 5.2%, 7/15/2045		77,000		70,447
Kraft Heinz Foods Co., 4.375%, 6/01/2046		230,000		189,726

			$	1,798,959

Gaming & Lodging – 0.1%
InterContinental Hotels Group PLC, 3.75%, 8/14/2025	GBP	260,000	$	344,067

Industrial – 0.1%
Grainger PLC, 3.375%, 4/24/2028	GBP	280,000	$	350,573
Investor AB, 1.5%, 9/12/2030	EUR	400,000		462,551

			$	813,124

Insurance – 0.3%
American International Group, Inc., 1.875%, 6/21/2027	EUR	480,000	$	522,820
Argentum Zurich Insurance, 3.5%, 10/01/2046		400,000		472,477
NN Group N.V., 4.625%, 4/08/2044		500,000		601,483

			$	1,596,780

Insurance – Health – 0.2%
Aetna, Inc., 2.8%, 6/15/2023	$	850,000	$	808,307
Halfmoon Parent, Inc., 4.125%, 11/15/2025 (n)		510,000		509,518

			$	1,317,825

Insurance – Property & Casualty – 0.7%
Berkshire Hathaway, Inc., 2.75%, 3/15/2023	$	636,000	$	624,308
Berkshire Hathaway, Inc., 4.5%, 2/11/2043		400,000		416,161
Chubb INA Holdings, Inc., 2.3%, 11/03/2020		267,000		263,183
Chubb INA Holdings, Inc., 2.5%, 3/15/2038	EUR	320,000		360,682
Hiscox Ltd., 6.125%, 11/24/2045	GBP	300,000		391,940
Liberty Mutual Group, Inc., 4.25%, 6/15/2023	$	839,000		845,842
Marsh & McLennan Cos., Inc., 4.35%, 1/30/2047		359,000		335,251



Issuer	Shares/Par		Value ($)
BONDS – continued
Insurance – Property & Casualty – continued
QBE Capital Funding III Ltd., 7.5%, 5/24/2041	GBP	400,000	$	543,770
XLIT Ltd., 3.25% to 6/29/2027, FLR (EURIBOR - 3mo. + 2.9%) to 6/29/2047	EUR	610,000		675,755

			$	4,456,892

International Market Quasi-Sovereign – 0.6%
Bank of Iceland, 1.75%, 9/07/2020	EUR	400,000	$	466,226
Landsbanki Islands HF, 1.125% to 1/19/2023, FLR (EUR Swap Rate - 1yr. + 0.75%) to 1/19/2024		350,000		391,316
Temasek Financial I Ltd., 2.375%, 1/23/2023 (n)	$	2,880,000		2,788,884

			$	3,646,426

International Market Sovereign – 21.2%
Bundesrepublik Deutschland, 0.25%, 8/15/2028	EUR	1,965,000	$	2,252,943
Commonwealth of Australia, 2.75%, 11/21/2028	AUD	4,570,000		3,338,061
Federal Republic of Germany, 2.5%, 7/04/2044	EUR	4,480,000		7,127,534
Federal Republic of Germany, 2.5%, 8/15/2046		1,203,000		1,940,384
Government of Canada, 1.5%, 6/01/2023	CAD	12,250,000		8,826,335
Government of Canada, 1.5%, 6/01/2026		12,026,000		8,543,728
Government of Canada, 5.75%, 6/01/2033		5,894,000		6,283,767
Government of Japan, 1.7%, 9/20/2032	JPY	745,300,000		8,165,015
Government of Japan, 2.4%, 3/20/2037		330,350,000		4,042,203
Government of Japan, 0.5%, 6/20/2038		1,861,300,000		16,982,739
Government of Norway, 2%, 4/26/2028	NOK	38,495,000		4,540,242
Kingdom of Spain, 2.75%, 10/31/2024	EUR	1,296,000		1,662,765
Kingdom of Spain, 5.15%, 10/31/2028		6,861,000		10,539,290
Republic of Italy, 5.5%, 9/01/2022		3,777,000		4,957,874
Republic of Italy, 2.5%, 12/01/2024		9,459,000		11,110,712
Republic of Italy, 2%, 2/01/2028		1,048,000		1,148,456
Republic of Italy, 1.65%, 3/01/2032		3,811,000		3,779,976
Republic of Portugal, 2.875%, 10/15/2025		4,020,000		5,125,000
Republic of Portugal, 2.125%, 10/17/2028		7,662,000		9,091,081
Republic of Portugal, 4.1%, 4/15/2037		715,000		995,505
United Kingdom Treasury, 3.25%, 1/22/2044	GBP	2,497,000		4,068,032

MFS Global Tactical Allocation Portfolio

Portfolio of Investments – continued



Issuer	Shares/Par		Value ($)
BONDS – continued
International Market Sovereign – continued
United Kingdom Treasury, 3.75%, 7/22/2052	GBP	1,659,000	$	3,167,739
United Kingdom Treasury, 4%, 1/22/2060		344,000		729,720

			$	128,419,101

Local Authorities – 0.2%
Province of Alberta, 4.5%, 12/01/2040	CAD	665,000	$	578,353
Province of British Columbia, 2.3%, 6/18/2026		965,000		690,535

			$	1,268,888

Major Banks – 3.0%
Bank of America Corp., 2.625%, 4/19/2021	$	972,000	$	958,745
Bank of America Corp., 3.004%, 12/20/2023		745,000		723,288
Bank of America Corp., 3.5%, 4/19/2026		1,274,000		1,227,028
Bank of America Corp., 3.248%, 10/21/2027		1,280,000		1,183,677
Bank of New York Mellon Corp., 2.95%, 1/29/2023		1,051,000		1,034,400
Barclays Bank PLC, 6%, 1/14/2021	EUR	548,000		675,862
Credit Agricole S.A., 7.375%, 12/18/2023	GBP	300,000		468,870
Credit Suisse Group AG, 6.5%, 8/08/2023 (n)	$	1,265,000		1,318,762
Credit Suisse Group AG, 1.25% to 7/17/2024, FLR (EUR Swap Rate - 1yr. + 0.75%) to 7/17/2025	EUR	400,000		447,814
Goldman Sachs Group, Inc., 5.75%, 1/24/2022	$	1,486,000		1,555,828
HSBC Holdings PLC, 4.375%, 11/23/2026		743,000		719,683
JPMorgan Chase & Co., 2.95%, 10/01/2026		1,647,000		1,521,861
JPMorgan Chase & Co., 3.54% to 5/01/2027, FLR (LIBOR - 3mo. + 1.38%) to 5/01/2028		745,000		710,760
Morgan Stanley, 5.5%, 7/28/2021		850,000		890,107
Morgan Stanley, 3.95%, 4/23/2027		636,000		599,944
Nationwide Building Society, 1.5% to 3/08/2025, FLR (EURIBOR - 3mo. + 0.93%) to 3/08/2026	EUR	200,000		217,459
Royal Bank of Scotland Group PLC, 3.875%, 9/12/2023	$	433,000		415,085
Sumitomo Mitsui Financial Group, Inc., 3.544%, 1/17/2028		1,096,000		1,065,207
Svenska Handelsbanken AB, 5.25% to 3/01/2021, FLR (Swap Rate - 5yr. + 3.335%) to 12/29/2049		606,000		583,275
UBS Group Funding (Jersey) Ltd., 1.5%, 11/30/2024	EUR	500,000		576,128



Issuer	Shares/Par		Value ($)
BONDS – continued
Major Banks – continued
UBS Group Funding (Switzerland) AG, 2.859% to 8/15/2022, FLR (LIBOR - 3mo. + 0.954%) to 8/15/2023 (n)	$	1,179,000	$	1,133,887

			$	18,027,670

Medical & Health Technology & Services – 0.7%
Becton, Dickinson and Co., 1.401%, 5/24/2023	EUR	700,000	$	807,485
Becton, Dickinson and Co., 3.734%, 12/15/2024	$	619,000		597,904
Laboratory Corp. of America Holdings, 3.2%, 2/01/2022		1,025,000		1,017,197
Laboratory Corp. of America Holdings, 4.7%, 2/01/2045		141,000		131,432
Northwell Healthcare, Inc., 3.979%, 11/01/2046		101,000		92,139
Northwell Healthcare, Inc., 4.26%, 11/01/2047		754,000		717,612
Thermo Fisher Scientific, Inc., 2.95%, 9/19/2026		394,000		363,794
Thermo Fisher Scientific, Inc., 3.2%, 8/15/2027		800,000		743,921

			$	4,471,484

Medical Equipment – 0.1%
Abbott Laboratories, 4.9%, 11/30/2046	$	593,000	$	623,331

Metals & Mining – 0.1%
Cameco Corp., 5.67%, 9/02/2019	CAD	679,000	$	505,395

Midstream – 0.5%
APT Pipelines Ltd., 5%, 3/23/2035 (n)	$	705,000	$	710,359
MPLX LP, 4.5%, 4/15/2038		449,000		392,559
ONEOK, Inc., 4.95%, 7/13/2047		1,191,000		1,101,672
Sabine Pass Liquefaction LLC, 4.2%, 3/15/2028		890,000		851,802

			$	3,056,392

Mortgage-Backed – 8.9%
Fannie Mae, 4.6%, 9/01/2019	$	560,726	$	565,679
Fannie Mae, 4.45%, 10/01/2019		387,962		391,768
Fannie Mae,5%, 12/01/2020 - 8/01/2040		2,261,506		2,404,212
Fannie Mae, 4.5%, 7/01/2023 - 2/01/2046		7,929,107		8,298,569
Fannie Mae, 4%,3/01/2025 - 2/01/2041		4,123,611		4,241,944
Fannie Mae, 5.5%, 11/01/2036 - 4/01/2037		177,394		191,091
Fannie Mae, 6%,9/01/2037 - 6/01/2038		304,517		331,345
Fannie Mae, 3.5%, 5/01/2043 - 1/01/2047		3,743,177		3,764,505
Freddie Mac, 5.085%, 3/25/2019		24,985		24,965

MFS Global Tactical Allocation Portfolio

Portfolio of Investments – continued



Issuer	Shares/Par		Value ($)
BONDS – continued
Mortgage-Backed – continued
Freddie Mac, 4.186%, 8/25/2019	$	650,000	$	651,774
Freddie Mac, 2.757%, 5/25/2020		11,549		11,524
Freddie Mac, 3.32%, 7/25/2020		56,119		56,012
Freddie Mac, 3.064%, 8/25/2024		2,767,003		2,774,773
Freddie Mac, 4%, 7/01/2025		134,717		138,190
Freddie Mac, 3.224%, 3/25/2027		4,000,000		3,992,283
Freddie Mac, 3.243%, 4/25/2027		2,270,000		2,266,238
Freddie Mac, 3.117%, 6/25/2027		1,036,027		1,024,593
Freddie Mac, 3.194%, 7/25/2027		6,520,000		6,476,557
Freddie Mac, 3.244%, 8/25/2027		2,367,000		2,357,783
Freddie Mac, 3.187%, 9/25/2027		5,222,000		5,173,622
Freddie Mac, 3.286%, 11/25/2027		1,303,000		1,299,168
Freddie Mac, 3.35%, 1/25/2028		2,001,000		2,004,361
Freddie Mac, 5.5%, 5/01/2034 - 7/01/2037		47,324		50,778
Freddie Mac, 5%, 10/01/2036 - 7/01/2041		847,934		900,868
Freddie Mac, 4.5%, 12/01/2039 -5/01/2042		1,484,437		1,554,710
Freddie Mac, 3.5%, 1/01/2047		1,483,806		1,487,099
Ginnie Mae, 5%, 5/15/2040		133,783		140,044
Ginnie Mae, 3.5%, 6/20/2043		1,219,534		1,234,197

			$	53,808,652

Municipals – 0.1%
Commonwealth of Puerto Rico, Public Improvement,“C-7”, NATL, 6%, 7/01/2027	$	55,000	$	56,855
Oklahoma Development Finance Authority, Health System Rev. (OU Medicine Project), “C”, 4.65%, 8/15/2030		572,000		609,884
Puerto Rico Electric Power Authority Rev., “PP”, NATL, 5%, 7/01/2022		245,000		246,548

			$	913,287

Natural Gas – Distribution – 0.2%
GNL Quintero S.A., 4.634%, 7/31/2029 (n)	$	1,420,000	$	1,370,300

Network & Telecom – 0.6%
AT&T, Inc., 4.75%, 5/15/2046	$	602,000	$	535,793
British Telecommunications PLC, 3.125%, 11/21/2031	GBP	250,000		305,352
Deutsche Telekom International Finance B.V., 1.5%, 4/03/2028	EUR	500,000		567,051
Empresa Nacional de Telecomunicaciones S.A., 4.75%, 8/01/2026 (n)	$	2,129,000		2,000,737

			$	3,408,933

Oil Services – 0.1%
Schlumberger Ltd., 2.65%, 11/20/2022 (n)	$	780,000	$	756,946



Issuer	Shares/Par		Value ($)
BONDS – continued
Oils – 0.3%
Marathon Petroleum Corp., 3.625%, 9/15/2024	$	500,000	$	486,485
Neste Oyj, 1.5%, 6/07/2024	EUR	500,000		579,102
Phillips 66, 4.875%, 11/15/2044	$	795,000		774,076

			$	1,839,663

Other Banks & Diversified Financials – 0.7%
Belfius Bank S.A., 3.125%, 5/11/2026	EUR	300,000	$	351,844
BPCE S.A., 0.625%, 9/26/2023		300,000		342,392
BPCE S.A., 5.25%, 4/16/2029	GBP	400,000		573,109
Deutsche Bank AG, 1.875%, 2/28/2020		200,000		251,400
Groupe BPCE S.A., 4.5%, 3/15/2025 (n)	$	384,000		371,771
Intesa Sanpaolo S.p.A., 5.25%, 1/28/2022	GBP	450,000		599,989
Intesa Sanpaolo S.p.A., 2.125%, 8/30/2023	EUR	400,000		460,000
KBC Group N.V., 0.875%, 6/27/2023		200,000		228,644
Macquarie Group Ltd., 1.25% to 3/05/2024, FLR (EURIBOR - 3mo. + 0.83%) to 3/05/2025		300,000		332,165
UniCredit S.p.A., 1%, 1/18/2023		800,000		857,223

			$	4,368,537

Pharmaceuticals – 0.3%
Allergan Funding SCS, 2.625%, 11/15/2028	EUR	320,000	$	370,930
Bayer Capital Corp. B.V., 1.5%, 6/26/2026		500,000		556,404
Takeda Pharmaceutical Co. Ltd., 1.125%, 11/21/2022 (z)		370,000		426,652
Takeda Pharmaceutical Co. Ltd., 2.25%, 11/21/2026 (z)		450,000		526,198

			$	1,880,184

Pollution Control – 0.1%
Republic Services, Inc., 3.95%, 5/15/2028	$	637,000	$	637,799

Real Estate – Apartment – 0.1%
Grand City Properties S.A., 1.375%, 8/03/2026	EUR	700,000	$	743,070

Real Estate – Office – 0.2%
Merlin Properties SOCIMI S.A., REIT, 2.225%, 4/25/2023	EUR	600,000	$	706,590
Merlin Properties SOCIMI S.A., REIT, 1.875%, 11/02/2026		350,000		381,969

			$	1,088,559

Retailers – 0.4%
Best Buy Co., Inc., 5.5%, 3/15/2021	$	1,107,000	$	1,141,423
Home Depot, Inc., 2.625%, 6/01/2022		695,000		687,679
Home Depot, Inc., 3%, 4/01/2026		830,000		802,783

			$	2,631,885

MFS Global Tactical Allocation Portfolio

Portfolio of Investments – continued



Issuer	Shares/Par		Value ($)
BONDS – continued
Specialty Stores – 0.1%
Richemont International S.A., 1.5%, 3/26/2030	EUR	400,000	$	454,939

Supermarkets – 0.1%
Esselunga S.p.A., 0.875%, 10/25/2023	EUR	350,000	$	394,241
Loblaw Cos. Ltd., 4.86%, 9/12/2023	CAD	680,000		526,208

			$	920,449

Supranational – 0.8%
European Stability Mechanism, 0.75%, 3/15/2027	EUR	3,450,000	$	4,013,710
International Bank for Reconstruction and Development, 2.8%, 1/13/2021	AUD	420,000		299,110
International Bank for Reconstruction and Development, 4.25%, 6/24/2025		465,000		359,306

			$	4,672,126

Telecommunications – Wireless – 0.5%
American Tower Corp., REIT, 4.7%, 3/15/2022	$	327,000	$	335,827
American Tower Corp., REIT, 3.5%, 1/31/2023		812,000		797,967
Crown Castle International Corp., 2.25%, 9/01/2021		1,072,000		1,036,387
Crown Castle International Corp., 3.7%, 6/15/2026		425,000		405,634
SBA Tower Trust, 2.898%, 10/15/2044 (n)		349,000		346,949

			$	2,922,764

Telephone Services – 0.1%
TELUS Corp., 5.05%, 7/23/2020	CAD	687,000	$	520,468

Tobacco – 0.1%
B.A.T. International Finance PLC, 0.875%, 10/13/2023	EUR	500,000	$	556,677
Imperial Brands Finance PLC, 1.375%, 1/27/2025		300,000		328,716

			$	885,393

Transportation – Services – 0.5%
Autostrade per l’Italia S.p.A., 6.25%, 6/09/2022	GBP	250,000	$	333,896
Compagnie Financial et Indus Unternehmensanleihe, 0.75%, 9/09/2028	EUR	500,000		534,741
ERAC USA Finance LLC, 7%, 10/15/2037 (n)	$	574,000		714,317
Heathrow Funding Ltd., 1.875%, 7/12/2032	EUR	300,000		326,614
Heathrow Funding Ltd., 4.625%, 10/31/2046	GBP	225,000		339,110
Transurban Finance Co., 1.75%, 3/29/2028	EUR	500,000		559,564

			$	2,808,242



Issuer	Shares/Par		Value ($)
BONDS – continued
U.S. Government Agencies and Equivalents – 0.2%
Small Business Administration, 5.09%, 10/01/2025	$	4,941	$	5,105
Small Business Administration, 5.21%, 1/01/2026		185,766		192,411
Small Business Administration, 5.31%, 5/01/2027		54,759		57,493
Small Business Administration, 2.22%, 3/01/2033		1,276,267		1,242,685

			$	1,497,694

U.S. Treasury Obligations – 8.5%
U.S. Treasury Bonds, 3.5%, 2/15/2039	$	1,383,000	$	1,514,773
U.S. Treasury Bonds, 4.5%, 8/15/2039		2,370,000		2,957,451
U.S. Treasury Bonds, 3.625%, 2/15/2044 (f)		6,649,000		7,378,111
U.S. Treasury Bonds, 3%, 5/15/2047		3,948,000		3,938,014
U.S. Treasury Bonds, TIPS, 0.25%, 1/15/2025		4,163,523		3,987,247
U.S. Treasury Notes, 2.125%, 9/30/2024 (f)		11,651,700		11,386,544
U.S. Treasury Notes, 2%, 11/15/2026 (f)		8,430,000		8,052,801
U.S. Treasury Notes, 2.75%, 2/15/2028 (f)		6,654,000		6,693,285
U.S. Treasury Notes, 2.875%, 5/15/2028		5,770,000		5,862,794

			$	51,771,020

Utilities – Electric Power – 2.0%
Duke Energy Corp., 2.65%, 9/01/2026	$	995,000	$	906,333
Duke Energy Florida LLC, 3.2%, 1/15/2027		842,000		815,334
Emera U.S. Finance LP, 2.7%, 6/15/2021		376,000		366,283
Emera U.S. Finance LP, 3.55%, 6/15/2026		430,000		407,969
Enel Finance International N.V., 5.625%, 8/14/2024	GBP	200,000		288,328
Enel Finance International N.V., 1.125%, 9/16/2026	EUR	300,000		324,617
Enel Finance International N.V., 3.5%, 4/06/2028 (z)	$	414,000		355,127
Enel Finance International N.V., 4.75%, 5/25/2047 (n)		343,000		291,598
Enersis Americas S.A., 4%, 10/25/2026		1,891,000		1,761,580
Engie Energia Chile S.A., 4.5%, 1/29/2025 (n)		1,180,000		1,137,527
Exelon Corp., 3.497%, 6/01/2022		406,000		396,722
Innogy Finance B.V., 1.625%, 5/30/2026	EUR	380,000		443,541
Innogy Finance B.V., 4.75%, 1/31/2034	GBP	300,000		437,131

MFS Global Tactical Allocation Portfolio

Portfolio of Investments – continued



Issuer	Shares/Par		Value ($)
BONDS – continued
Utilities – Electric Power – Services – continued
NextEra Energy Capital Holdings, Inc., 3.55%, 5/01/2027	$	992,000	$	947,138
PPL Capital Funding, Inc., 5%, 3/15/2044		473,000		482,751
PPL WEM Holdings PLC, 5.375%, 5/01/2021 (n)		280,000		289,109
Public Service Enterprise Group, 2%, 11/15/2021		1,215,000		1,166,718
Virginia Electric & Power Co., 3.5%, 3/15/2027		1,200,000		1,182,438

			$	12,000,244

Total Bonds (Identified Cost, $388,133,124)			$	385,076,348


COMMON STOCKS – 31.2%
Aerospace – 1.1%
Boeing Co.		3,387	$	1,092,308
Honeywell International, Inc.		17,167		2,268,104
Lockheed Martin Corp.		7,771		2,034,759
Northrop Grumman Corp.		1,356		332,084
United Technologies Corp.		8,326		886,552

			$	6,613,807

Airlines – 0.2%
Aena S.A.		2,415	$	375,618
Air Canada (a)		58,544		1,113,245

			$	1,488,863

Alcoholic Beverages – 0.7%
Heineken N.V.		18,464	$	1,633,176
Molson Coors Brewing Co.		8,096		454,671
Pernod Ricard S.A.		12,109		1,988,127

			$	4,075,974

Apparel Manufacturers – 0.1%
Compagnie Financiere Richemont S.A.		11,955	$	768,317

Automotive – 0.4%
Aptiv PLC		11,084	$	682,442
Magna International, Inc.		27,201		1,234,725
USS Co. Ltd.		32,400		540,750

			$	2,457,917

Biotechnology – 0.1%
Biogen, Inc. (a)		2,515	$	756,814

Broadcasting – 0.4%
Omnicom Group, Inc.		22,425	$	1,642,407
Publicis Groupe S.A.		11,495		659,573

			$	2,301,980

Brokerage & Asset Managers – 0.3%
ASX Ltd.		3,837	$	161,993
BlackRock, Inc.		3,131		1,229,920
TMX Group Ltd.		9,697		502,394

			$	1,894,307



Issuer	Shares/Par		Value ($)
COMMON STOCKS – continued
Business Services – 2.5%
Accenture PLC, “A”		19,779	$	2,789,037
Bunzl PLC		25,190		760,619
CGI Group, Inc., “A” (a)		9,910		606,127
Cognizant Technology Solutions Corp., “A”		14,014		889,609
Compass Group PLC		93,267		1,961,489
DXC Technology Co.		16,827		894,692
Equifax, Inc.		8,374		779,871
Experian PLC		38,242		928,559
Fidelity National Information Services, Inc.		8,310		852,190
Fiserv, Inc. (a)		11,335		833,009
Nomura Research Institute Ltd.		21,100		775,632
Secom Co. Ltd.		18,400		1,519,165
SGS S.A.		237		533,962
Thomson Reuters Corp.		17,843		861,995

			$	14,985,956

Cable TV – 0.4%
Comcast Corp., “A”		75,588	$	2,573,771

Chemicals – 1.0%
3M Co.		9,782	$	1,863,862
CF Industries Holdings, Inc.		6,345		276,071
Givaudan S.A.		728		1,688,538
LyondellBasell Industries N.V., “A”		2,788		231,850
PPG Industries, Inc.		19,324		1,975,492

			$	6,035,813

Computer Software – 0.2%
Adobe Systems, Inc. (a)		2,179	$	492,977
Cadence Design Systems, Inc. (a)		16,440		714,811

			$	1,207,788

Computer Software – Systems – 0.3%
Amadeus IT Group S.A.		18,248	$	1,272,021
Hitachi Ltd.		20,900		555,560

			$	1,827,581

Construction – 0.4%
Persimmon PLC		15,598	$	383,707
Sherwin-Williams Co.		2,886		1,135,526
Stanley Black & Decker, Inc.		9,773		1,170,219

			$	2,689,452

Consumer Products – 1.0%
Colgate-Palmolive Co.		11,527	$	686,087
Kao Corp.		19,200		1,415,537
Kimberly-Clark Corp.		17,984		2,049,097
Reckitt Benckiser Group PLC		22,869		1,752,719

			$	5,903,440

Containers – 0.1%
Amcor Ltd.		55,757	$	520,360

Electrical Equipment – 1.1%
Johnson Controls International PLC		41,484	$	1,230,001
Legrand S.A.		13,864		783,114

MFS Global Tactical Allocation Portfolio

Portfolio of Investments – continued



Issuer	Shares/Par		Value ($)
COMMON STOCKS – continued
OMRON Corp.		20,200	$	728,071
Schneider Electric S.A.		48,463		3,316,041
Spectris PLC		15,069		437,726

			$	6,494,953

Electronics – 1.7%
Analog Devices, Inc.		12,862	$	1,103,945
Halma PLC		42,532		739,442
Hoya Corp.		11,900		727,355
Kyocera Corp.		12,400		616,641
Samsung Electronics Co. Ltd.		18,981		656,755
Taiwan Semiconductor
Manufacturing Co. Ltd., ADR		117,914		4,352,206
Texas Instruments, Inc.		25,026		2,364,957

			$	10,561,301

Energy – Independent – 0.5%
Marathon Petroleum Corp.		27,874	$	1,644,845
Occidental Petroleum Corp.		9,008		552,911
Phillips 66		9,877		850,903

			$	3,048,659

Energy – Integrated – 0.9%
BP PLC		88,047	$	556,578
Chevron Corp.		7,098		772,191
China Petroleum & Chemical Corp.		630,000		449,741
Exxon Mobil Corp.		23,319		1,590,123
Galp Energia SGPS S.A., “B”		43,337		684,968
LUKOIL PJSC, ADR		11,270		805,580
Suncor Energy, Inc.		23,482		655,852

			$	5,515,033

Food & Beverages – 1.3%
Danone S.A.		19,386	$	1,366,230
General Mills, Inc.		30,317		1,180,544
J.M. Smucker Co.		4,101		383,402
Marine Harvest		43,879		923,698
Nestle S.A.		41,030		3,335,774
Tyson Foods, Inc., “A”		11,142		594,983

			$	7,784,631

Food & Drug Stores – 0.1%
Wesfarmers Ltd.		36,695	$	832,762

Health Maintenance Organizations – 0.2%
Cigna Corp.		6,589	$	1,251,383

Insurance – 1.9%
Aon PLC		19,039	$	2,767,509
AXA		28,802		622,312
Chubb Ltd.		12,519		1,617,205
Hiscox Ltd.		30,747		635,272
MetLife, Inc.		34,421		1,413,326
Prudential Financial, Inc.		7,288		594,336
Samsung Fire & Marine Insurance
Co. Ltd. (a)		407		98,121
Travelers Cos., Inc.		15,055		1,802,836
Zurich Insurance Group AG		6,893		2,059,557

			$	11,610,474



Issuer	Shares/Par		Value ($)
COMMON STOCKS – continued
Machinery & Tools – 0.5%
Eaton Corp. PLC		21,435	$	1,471,727
Illinois Tool Works, Inc.		11,700		1,482,273

			$	2,954,000

Major Banks – 2.3%
ABSA Group Ltd.		41,494	$	466,694
Bank of New York Mellon Corp.		27,108		1,275,974
China Construction Bank		1,556,000		1,283,668
Goldman Sachs Group, Inc.		4,625		772,606
JPMorgan Chase & Co.		33,931		3,312,344
PNC Financial Services Group, Inc.		6,494		759,214
Royal Bank of Canada		11,741		804,493
State Street Corp.		19,307		1,217,692
Svenska Handelsbanken AB, “A”		16,303		180,600
UBS AG		140,659		1,755,841
Wells Fargo & Co.		50,154		2,311,096

			$	14,140,222

Medical & Health Technology & Services – 0.4%
HCA Healthcare, Inc.		11,247	$	1,399,689
McKesson Corp.		2,714		299,816
Sonic Healthcare Ltd.		34,102		531,077
Walgreens Boots Alliance, Inc.		4,095		279,811

			$	2,510,393

Medical Equipment – 1.0%
Abbott Laboratories		26,870	$	1,943,507
Danaher Corp.		11,922		1,229,397
Medtronic PLC		23,220		2,112,091
Thermo Fisher Scientific, Inc.		3,248		726,870

			$	6,011,865

Natural Gas – Distribution – 0.1%
ENGIE		42,655	$	612,121

Natural Gas – Pipeline – 0.1%
Enterprise Products Partners LP		29,334	$	721,323

Network & Telecom – 0.1%
Cisco Systems, Inc.		17,435	$	755,459

Oil Services – 0.2%
Schlumberger Ltd.		26,627	$	960,702

Other Banks & Diversified Financials – 0.9%
Agricultural Bank of China Ltd., “H”		467,000	$	204,560
American Express Co.		6,355		605,759
Citigroup, Inc.		21,498		1,119,186
DBS Group Holdings Ltd.		14,900		258,983
ING Groep N.V.		52,285		563,711
KBC Groep N.V.		11,421		741,692
Komercni Banka A.S.		2,542		95,857
ORIX Corp.		17,500		254,268
Sberbank of Russia, ADR		17,301		189,619
U.S. Bancorp		33,048		1,510,294

			$	5,543,929

MFS Global Tactical Allocation Portfolio

Portfolio of Investments – continued



Issuer	Shares/Par		Value ($)
COMMON STOCKS – continued
Pharmaceuticals – 3.1%
Bayer AG		29,866	$	2,072,300
Bristol-Myers Squibb Co.		29,348		1,525,509
Eli Lilly & Co.		5,726		662,613
Johnson & Johnson		27,387		3,534,292
Novartis AG		32,516		2,784,943
Pfizer, Inc.		81,915		3,575,590
Roche Holding AG		15,601		3,857,725
Santen Pharmaceutical Co. Ltd.		61,800		884,418

			$	18,897,390

Printing & Publishing – 0.3%
Moody’s Corp.		7,865	$	1,101,414
RELX Group PLC		48,263		993,693

			$	2,095,107

Railroad & Shipping – 0.2%
Canadian National Railway Co.		5,172	$	383,297
Union Pacific Corp.		3,655		505,231

			$	888,528

Real Estate – 0.8%
CK Asset Holdings Ltd.		68,000	$	497,593
Deutsche Wohnen SE		37,144		1,702,309
Grand City Properties S.A.		18,755		407,207
Medical Properties Trust, Inc., REIT		54,313		873,353
Public Storage, Inc., REIT		1,573		318,391
Store Capital Corp., REIT		9,171		259,631
Unibail-Rodamco-Westfield, REIT		3,010		466,955

			$	4,525,439

Restaurants – 0.2%
Greggs PLC		19,822	$	319,856
Starbucks Corp.		13,034		839,390

			$	1,159,246

Specialty Chemicals – 0.4%
Akzo Nobel N.V.		15,053	$	1,214,187
PTT Global Chemical PLC		484,200		1,059,559

			$	2,273,746

Specialty Stores – 0.1%
Dufry AG		4,359	$	413,990

Telecommunications – Wireless – 0.9%
KDDI Corp.		156,400	$	3,727,024
SK Telecom Co. Ltd.		1,935		467,362
Vodafone Group PLC		571,719		1,114,202

			$	5,308,588

Telephone Services – 0.2%
Telus Corp.		19,320	$	640,368
TELUS Corp.		6,799		225,319
Verizon Communications, Inc.		10,028		563,774

			$	1,429,461

Tobacco – 1.4%
Altria Group, Inc.		32,413	$	1,600,878
British American Tobacco PLC		9,923		316,196



Issuer	Shares/Par		Value ($)
COMMON STOCKS – continued
Tobacco – continued
Imperial Tobacco Group PLC		26,407	$	800,059
Japan Tobacco, Inc.		88,300		2,094,910
Philip Morris International, Inc.		57,814		3,859,663

			$	8,671,706

Trucking – 0.1%
United Parcel Service, Inc., “B”		6,348	$	619,121

Utilities – Electric Power – 1.0%
Duke Energy Corp.		19,218	$	1,658,513
E.ON AG		31,345		309,826
Exelon Corp.		39,321		1,773,377
SSE PLC		113,788		1,568,545
Xcel Energy, Inc.		11,371		560,249

			$	5,870,510

Total Common Stocks (Identified Cost, $139,886,905)			$	189,564,182


PREFERRED STOCKS – 0.3%
Consumer Products – 0.3%
Henkel AG & Co. KGaA (Identified Cost, $766,078)		15,334	$	1,676,075


CONVERTIBLE PREFERRED STOCKS – 0.1%
Utilities – Electric Power – 0.1%
CenterPoint Energy, Inc., 7%		5,479	$	275,977
NextEra Energy, Inc., 6.123%		3,325		191,653

Total Convertible Preferred Stocks (Identified Cost, $464,069)			$	467,630


INVESTMENT COMPANIES (h) – 4.1%
Money Market Funds – 4.1%
MFS Institutional Money Market Portfolio, 2.4% (v) (Identified Cost, $24,746,477)		24,749,202	$	24,746,728

Underlying/
Expiration
Date/Exercise
Price

Put/
Call

Counter-
party

Notional
Amount

Par
Amount/
Number of
Contracts

PURCHASED OPTIONS – 0.1%

Market Index Securities – 0.1%

Russell 2000 Index – June 2019 @ $1,180 (Premiums Paid, $472,720)

Put

Goldman Sachs International

33,713,970

250

840,250

OTHER ASSETS, LESS
LIABILITIES – 0.8%

4,623,469

NET ASSETS – 100.0%

606,994,682

MFS Global Tactical Allocation Portfolio

Portfolio of Investments – continued

(a)

Non-income producing security.

(f)

All or a portion of the security has been segregated as collateral for open futures contracts.

(h)

(n)

(v)

(z)


Restricted Securities	Acquisition Date	Cost		Value

Chesapeake Funding II LLC,2016-2A, “A2”, FLR, 3.455% (LIBOR - 1mo. + 1%), 6/15/2028	6/14/16		$469,764		$470,944

Dryden Senior Loan Fund,2013-26A, “AR”, CLO, FLR, 3.336% (LIBOR - 3mo. + 0.9%), 4/15/2029	4/09/18		1,292,000		1,275,881

Enel Finance International N.V., 3.5%, 4/06/2028	10/02/18		364,248		355,127

Kref Ltd.,2018-FL1, “A”, FLR, 3.402% (LIBOR - 1mo. + 1.1%), 6/15/2036	11/07/18		773,500		773,486

Takeda Pharmaceutical Co. Ltd., 1.125%, 11/21/2022	11/15/18		417,758		426,652

Takeda Pharmaceutical Co. Ltd., 2.25%, 11/21/2026	11/15/18		509,313		526,198

Total Restricted Securities					$3,828,288

% of Net assets					0.6%

The following abbreviations are used in this report and are defined:

ADR

American Depositary Receipt

CLO

Collateralized Loan Obligation

EURIBOR

Euro Interbank Offered Rate

FLR

LIBOR

London Interbank Offered Rate

NATL

National Public Finance Guarantee Corp.

PJSC

Public Joint Stock Company

PLC

Public Limited Company

REIT

Real Estate Investment Trust

TIPS

Treasury Inflation Protected Security

Abbreviations indicate amounts shown in currencies other than the U.S. dollar. All amounts are stated in U.S. dollars unless otherwise indicated. A list of abbreviations is shown below:

AUD

Australian Dollar

BRL

Brazilian Real

CAD

Canadian Dollar

CHF

Swiss Franc

COP

Colombian Peso

CZK

Czech Koruna

DKK

Danish Krone

EUR

Euro

GBP

British Pound

HKD

Hong Kong Dollar

IDR

Indonesian Rupiah

ILS

Israeli Shekel

JPY

Japanese Yen

KRW

South Korean Won

MXN

Mexican Peso

NOK

Norwegian Krone

MFS Global Tactical Allocation Portfolio

Portfolio of Investments – continued

NZD

New Zealand Dollar

PHP

Philippine Peso

PLN

Polish Zloty

RUB

Russian Ruble

SEK

Swedish Krona

SGD

Singapore Dollar

THB

Thailand Baht

TRY

Turkish Lira

ZAR

South African Rand

Derivative Contracts at 12/31/18

Forward Foreign Currency Exchange Contracts


Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
Asset Derivatives
CHF	978,676	USD	986,000	JPMorgan Chase Bank N.A.		2/14/2019		$13,528
EUR	807,525	USD	918,582	Brown Brothers Harriman		1/11/2019		7,251
EUR	3,512,000	USD	4,014,392	Deutsche Bank AG		1/11/2019		12,136
EUR	9,904,192	USD	11,262,343	Goldman Sachs International		1/11/2019		92,867
EUR	838,278	USD	951,821	JPMorgan Chase Bank N.A.		1/11/2019		9,269
EUR	3,286,762	USD	3,732,000	JPMorgan Chase Bank N.A.		2/14/2019		47,017
EUR	6,001,208	USD	6,871,701	JPMorgan Chase Bank N.A.		3/18/2019		47,329
EUR	313,977	USD	357,430	NatWest Markets PLC		1/11/2019		2,546
GBP	157,884	USD	200,181	Brown Brothers Harriman		1/11/2019		1,138
GBP	353,208	USD	442,073	Goldman Sachs International		1/11/2019		8,304
GBP	1,408,000	USD	1,771,754	UBS AG		1/11/2019		23,591
IDR	16,905,864,000	USD	1,093,381	JPMorgan Chase Bank N.A.		2/04/2019		78,399
JPY	4,043,951,700	USD	36,359,442	JPMorgan Chase Bank N.A.		1/11/2019		548,139
JPY	555,079,441	USD	4,902,000	JPMorgan Chase Bank N.A.		2/14/2019		177,622
JPY	448,216,000	USD	4,004,743	Merrill Lynch International		1/11/2019		85,951
JPY	90,017,480	USD	808,961	Morgan Stanley Capital Services, Inc.		1/11/2019		12,594
JPY	459,793,034	USD	4,127,402	UBS AG		1/11/2019		68,951
KRW	5,862,467,000	USD	5,185,867	JPMorgan Chase Bank N.A.		1/15/2019		69,996
NZD	3,105,000	USD	2,040,432	Goldman Sachs International		1/11/2019		43,923
NZD	558,211	USD	365,524	NatWest Markets PLC		1/11/2019		9,197
PHP	157,364,000	USD	2,982,073	JPMorgan Chase Bank N.A.		1/22/2019		5,219
SEK	18,151,000	USD	2,002,582	Deutsche Bank AG		1/11/2019		46,811
SEK	12,128,213	USD	1,341,000	Goldman Sachs International		2/14/2019		32,052
SEK	16,153,522	USD	1,817,468	JPMorgan Chase Bank N.A.		1/11/2019		6,393
SEK	36,427,000	USD	4,101,686	Merrill Lynch International		1/11/2019		11,211
SGD	1,350,000	USD	982,954	JPMorgan Chase Bank N.A.		1/11/2019		7,732
THB	42,550,650	USD	1,289,804	JPMorgan Chase Bank N.A.		2/13/2019		15,906
USD	6,150,004	AUD	8,606,580	Deutsche Bank AG		1/11/2019		86,893
USD	3,500,214	AUD	4,784,292	Goldman Sachs International		1/11/2019		129,805
USD	5,121,412	AUD	7,163,455	JPMorgan Chase Bank N.A.		1/11/2019		74,946
USD	6,305,538	AUD	8,742,404	JPMorgan Chase Bank N.A.		2/14/2019		142,869
USD	280,623	CAD	364,000	Citibank N.A.		1/11/2019		13,929
USD	3,465,850	CAD	4,512,776	Citibank N.A.		1/14/2019		159,212
USD	3,977,073	CAD	5,295,925	Deutsche Bank AG		1/11/2019		96,885
USD	827,685	CAD	1,102,000	Goldman Sachs International		1/11/2019		20,278
USD	4,199,349	CAD	5,533,300	JPMorgan Chase Bank N.A.		1/11/2019		145,242
USD	3,766,000	CAD	5,021,935	JPMorgan Chase Bank N.A.		2/14/2019		83,572
USD	10,198,859	CAD	13,379,320	Merrill Lynch International		1/11/2019		396,177
USD	1,963,741	CAD	2,631,000	NatWest Markets PLC		1/11/2019		36,075
USD	5,553,194	CAD	7,325,834	UBS AG		1/11/2019		185,745
USD	613,351	COP	1,971,005,000	Barclays Bank PLC		1/28/2019		7,191
USD	1,364,055	COP	4,381,633,000	Goldman Sachs International		1/28/2019		16,534
USD	1,410,922	EUR	1,223,167	Deutsche Bank AG		1/11/2019		8,554
USD	14,132,665	EUR	12,101,942	Goldman Sachs International		1/11/2019		257,722
USD	2,630,184	EUR	2,264,057	Goldman Sachs International		1/14/2019		33,780

MFS Global Tactical Allocation Portfolio

Portfolio of Investments – continued

Forward Foreign Currency Exchange Contracts - continued


Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
Asset Derivatives – continued
USD	937,818	EUR	817,943	JPMorgan Chase Bank N.A.		1/11/2019		$41
USD	2,254,012	EUR	1,940,000	UBS AG		1/11/2019		29,792
USD	1,095,070	GBP	835,286	Citibank N.A.		1/11/2019		29,995
USD	2,431,009	GBP	1,839,367	Deutsche Bank AG		1/11/2019		85,626
USD	6,022,000	GBP	4,703,864	JPMorgan Chase Bank N.A.		2/14/2019		14,067
USD	687,344	ILS	2,517,156	JPMorgan Chase Bank N.A.		2/14/2019		11,907
USD	8,315,221	NOK	69,814,988	Goldman Sachs International		1/11/2019		237,845
USD	24,580,000	NOK	211,130,844	Goldman Sachs International		2/14/2019		115,013
USD	4,350,751	NOK	37,364,532	JPMorgan Chase Bank N.A.		1/11/2019		27,790
USD	2,023,494	NZD	2,950,000	Citibank N.A.		1/11/2019		43,188
USD	4,929,531	NZD	7,244,000	Goldman Sachs International		1/11/2019		66,706
USD	31,159,161	NZD	46,105,028	Goldman Sachs International		2/14/2019		190,352

								$4,232,803

Liability Derivatives
AUD	4,555,013	USD	3,315,336	Citibank N.A.		1/11/2019		$(106,449	)
AUD	6,344,165	USD	4,623,285	Deutsche Bank AG		1/11/2019		(153,987	)
AUD	2,490,665	USD	1,775,937	JPMorgan Chase Bank N.A.		1/11/2019		(21,329	)
AUD	20,132,669	USD	14,562,000	JPMorgan Chase Bank N.A.		2/14/2019		(370,140	)
AUD	5,500,000	USD	4,024,074	Merrill Lynch International		1/11/2019		(149,468	)
AUD	614,520	USD	443,292	UBS AG		1/11/2019		(10,378	)
CAD	4,243,632	USD	3,267,148	JPMorgan Chase Bank N.A.		1/11/2019		(157,948	)
CAD	11,620,192	USD	8,796,245	JPMorgan Chase Bank N.A.		2/14/2019		(275,521	)
CHF	2,483,000	USD	2,541,430	Goldman Sachs International		1/11/2019		(13,560	)
COP	3,411,854,000	USD	1,072,236	Barclays Bank PLC		1/28/2019		(22,958	)
COP	2,940,785,000	USD	924,921	Goldman Sachs International		1/28/2019		(20,515	)
CZK	9,851,000	USD	445,289	JPMorgan Chase Bank N.A.		1/11/2019		(6,609	)
DKK	8,011,079	USD	1,255,165	Citibank N.A.		1/11/2019		(24,944	)
EUR	1,020,763	USD	1,171,967	Citibank N.A.		1/11/2019		(1,658	)
EUR	1,100,124	USD	1,269,322	Deutsche Bank AG		1/11/2019		(8,024	)
EUR	2,383,290	USD	2,740,793	JPMorgan Chase Bank N.A.		1/11/2019		(8,338	)
EUR	2,170,615	USD	2,506,631	UBS AG		1/11/2019		(18,009	)
GBP	205,338	USD	271,290	Brown Brothers Harriman		1/11/2019		(9,463	)
GBP	1,459,000	USD	1,876,414	Citibank N.A.		1/11/2019		(16,039	)
GBP	1,985,000	USD	2,583,007	Goldman Sachs International		1/11/2019		(51,928	)
GBP	2,343,618	USD	3,052,138	JPMorgan Chase Bank N.A.		2/14/2019		(58,791	)
GBP	1,080,000	USD	1,405,279	UBS AG		1/11/2019		(28,168	)
ILS	1,799,000	USD	498,772	Barclays Bank PLC		1/11/2019		(17,359	)
MXN	23,425,560	USD	1,230,283	Goldman Sachs International		1/11/2019		(39,456	)
NOK	104,790,284	USD	12,874,334	Goldman Sachs International		1/11/2019		(750,424	)
NOK	139,673,121	USD	16,541,305	Goldman Sachs International		2/14/2019		(356,549	)
NZD	27,129,879	USD	18,450,000	Goldman Sachs International		2/14/2019		(226,824	)
NZD	4,335,000	USD	3,007,377	Merrill Lynch International		1/11/2019		(97,335	)
PLN	3,697,931	USD	996,800	Barclays Bank PLC		1/11/2019		(8,583	)
RUB	42,540,000	USD	636,788	JPMorgan Chase Bank N.A.		3/06/2019		(30,839	)
USD	25,465,957	CHF	25,463,869	JPMorgan Chase Bank N.A.		2/14/2019		(540,443	)
USD	243,958	DKK	1,592,000	Barclays Bank PLC		1/11/2019		(517	)
USD	1,131,302	DKK	7,422,872	JPMorgan Chase Bank N.A.		2/14/2019		(12,024	)
USD	607,409	EUR	530,000	Barclays Bank PLC		1/11/2019		(239	)
USD	2,130,655	EUR	1,874,784	Citibank N.A.		1/11/2019		(18,795	)
USD	2,431,860	EUR	2,132,000	Deutsche Bank AG		1/11/2019		(12,490	)
USD	481,685	EUR	423,000	Deutsche Bank AG		1/14/2019		(3,409	)
USD	1,892,662	EUR	1,657,251	Goldman Sachs International		1/11/2019		(7,385	)
USD	74,568,841	EUR	65,591,294	Goldman Sachs International		2/14/2019		(845,993	)
USD	36,522,122	EUR	32,133,575	JPMorgan Chase Bank N.A.		2/14/2019		(424,065	)
USD	1,073,305	EUR	936,193	UBS AG		1/11/2019		(46	)
USD	97,651	GBP	77,801	JPMorgan Chase Bank N.A.		1/11/2019		(1,553	)

MFS Global Tactical Allocation Portfolio

Portfolio of Investments – continued

Forward Foreign Currency Exchange Contracts - continued


Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
Liability Derivatives – continued
USD	1,144,608	IDR	16,905,864,000	JPMorgan Chase Bank N.A.		2/04/2019		$(27,172	)
USD	1,929,693	JPY	217,953,912	Citibank N.A.		1/11/2019		(59,487	)
USD	932,489	JPY	104,369,000	Goldman Sachs International		1/11/2019		(20,046	)
USD	37,847,426	JPY	4,277,762,159	JPMorgan Chase Bank N.A.		2/14/2019		(1,299,069	)
USD	831,394	JPY	93,696,000	NatWest Markets PLC		1/11/2019		(23,733	)
USD	4,875,223	KRW	5,511,639,330	JPMorgan Chase Bank N.A.		1/15/2019		(66,113	)
USD	2,102,970	SEK	19,091,000	Citibank N.A.		1/11/2019		(52,556	)
USD	12,404,365	SEK	111,618,010	Goldman Sachs International		2/14/2019		(232,070	)
USD	899,211	SGD	1,238,213	JPMorgan Chase Bank N.A.		2/14/2019		(10,098	)
USD	237,586	SGD	327,000	Morgan Stanley Capital Services, Inc.		1/11/2019		(2,380	)
USD	63,661	ZAR	929,865	Deutsche Bank AG		1/11/2019		(912	)

								$(6,722,188	)

Futures Contracts


Description	Long/ Short		Currency		Contracts	Notional Amount		Expiration Date		Value/ Unrealized Appreciation (Depreciation)
Asset Derivatives
*Equity Futures*
AEX 25 Index		Short		EUR	130		$14,528,931		January - 2019		$383,228
DAX Index		Short		EUR	40		12,100,835		March - 2019		221,579
Hang Seng China Enterprises Index		Long		HKD	63		4,063,763		January - 2019		8,850
Hang Seng Index		Long		HKD	48		7,924,092		January - 2019		98,354
IBOV Index		Short		BRL	134		3,060,486		February - 2019		15,524
KOSPI 200 Index		Short		KRW	95		5,564,910		March - 2019		11,805
MSCI Taiwan Index		Long		USD	548		19,695,120		January - 2019		285,552
Russell 2000 Index		Short		USD	220		14,839,000		March - 2019		1,216,488
S&P 500 Index		Short		USD	96		12,024,960		March - 2019		480,375
S&P/TSX 60 Index		Short		CAD	80		10,047,466		March - 2019		300,705
Topix Index		Short		JPY	87		11,739,639		March - 2019		845,495

											$3,867,955

*Interest Rate Futures*
Australian Treasury Bond 10 yr		Long		AUD	499		$46,631,348		March - 2019		$576,200
German Euro-Bund 10 yr		Long		EUR	70		13,116,313		March - 2019		88,061
U.S. Treasury Note 2 yr		Long		USD	119		25,265,188		March - 2019		174,361
U.S. Treasury Note 5 yr		Long		USD	595		68,239,062		March - 2019		1,151,047

											$1,989,669

											$5,857,624

Liability Derivatives
*Equity Futures*
BIST 30 Index		Long		TRY	7,569		$16,879,192		February - 2019		$(119,121	)
CAC 40 Index		Long		EUR	273		14,790,259		January - 2019		(236,844	)
FTSE 100 Index		Long		GBP	293		24,868,551		March - 2019		(618,633	)
FTSE/JSE Index		Short		ZAR	460		15,045,477		March - 2019		(577,363	)
FTSE/MIB Index		Long		EUR	74		7,721,688		March - 2019		(222,987	)
IBEX Index		Long		EUR	68		6,635,756		January - 2019		(160,341	)
Mexican Bolsa Index		Long		MXN	493		10,480,773		March - 2019		(753	)
MSCI Singapore Index		Short		SGD	27		676,907		January - 2019		(3,665	)
NIFTY Index		Short		USD	417		9,109,365		January - 2019		(32,563	)
OMX Index		Long		SEK	1,531		24,396,782		January - 2019		(783,563	)
S&P/ASX 200 Index		Long		AUD	88		8,617,157		March - 2019		(26,591	)

											$(2,782,424	)

MFS Global Tactical Allocation Portfolio

Portfolio of Investments – continued

Futures Contracts - continued


Description	Long/ Short		Currency		Contracts	Notional Amount		Expiration Date		Value/ Unrealized Appreciation (Depreciation)
Liability Derivatives – continued
*Interest Rate Futures*
Canadian Treasury Bond 10 yr		Short		CAD	617		$61,812,987		March - 2019		$(1,990,381	)
German Euro Buxl 30 yr		Short		EUR	20		4,138,906		March - 2019		(74,749	)
German Euro-Bobl 5 yr		Short		EUR	103		15,638,979		March - 2019		(29,948	)
Japan Government Bond 10 yr		Short		JPY	5		6,955,887		March - 2019		(30,633	)
Long Gilt 10 yr		Short		GBP	17		2,668,872		March - 2019		(21,290	)
U.S. Treasury Bond 30 yr		Short		USD	10		1,460,000		March - 2019		(67,849	)
U.S. Treasury Note 10 yr		Short		USD	392		47,830,125		March - 2019		(1,184,092	)
U.S. Treasury Ultra Bond 30 yr		Short		USD	105		16,868,906		March - 2019		(886,264	)
U.S. Treasury Ultra Note 10 yr		Short		USD	62		8,064,844		March - 2019		(259,366	)

											$(4,544,572	)

											$(7,326,996	)

At December 31, 2018, the fund had cash collateral of $2,953,044 and other liquid securities with an aggregate value of $18,331,128 to cover any collateral or margin obligations for certain derivative contracts. Restricted cash and/or deposits with brokers in the Statement of Assets and Liabilities are comprised of cash collateral.

See Notes to Financial Statements

MFS Global Tactical Allocation Portfolio

FINANCIAL STATEMENTS ^| STATEMENT OF ASSETS AND LIABILITIES

This statement represents your fund’s balance sheet, which details the assets and liabilities comprising the total value of the fund.


At 12/31/18

Assets
Investments in unaffiliated issuers, at value (identified cost, $529,722,896)			$577,624,485
Investments in affiliated issuers, at value (identified cost, $24,746,477)			24,746,728
Cash			932,618
Foreign currency, at value (identified cost, $13,890)			13,993
Restricted cash for
Forward foreign currency exchange contracts			2,353,000
Deposits with brokers for
Futures contracts			600,044
Receivables for
Forward foreign currency exchange contracts			4,232,803
Net daily variation margin on open futures contracts			337,077
Investments sold			595,809
Interest and dividends			3,450,158
Other assets			3,925
Total assets			$614,890,640

Liabilities
Payables for
Forward foreign currency exchange contracts			$6,722,188
Investments purchased			13,392
Fund shares reacquired			918,148
Payable to affiliates
Investment adviser			47,375
Shareholder servicing costs			119
Distribution and/or service fees			15,268
Payable for independent Trustees’ compensation			11
Deferred country tax expense payable			24,859
Accrued expenses and other liabilities			154,598
Total liabilities			$7,895,958
Net assets			$606,994,682

Net assets consist of
Paid-in capital			$538,384,218
Total distributable earnings (loss)			68,610,464
Net assets			$606,994,682
Shares of beneficial interest outstanding			42,328,556



	Net assets		Shares outstanding		Net asset value per share
Initial Class		$47,516,873		3,260,141		$14.58
Service Class		559,477,809		39,068,415		14.32

See Notes to Financial Statements

MFS Global Tactical Allocation Portfolio

FINANCIAL STATEMENTS ^| STATEMENT OF OPERATIONS

This statement describes how much your fund earned in investment income and accrued in expenses. It also describes any gains and/or losses generated by fund operations.


Year ended 12/31/18

Net investment income (loss)
Income
Interest	$11,103,176
Dividends	7,007,613
Dividends from affiliated issuers	453,817
Income on securities loaned	22,092
Other	3,601
Foreign taxes withheld	(381,086	)
Total investment income	$18,209,213
Expenses
Management fee	$4,887,426
Distribution and/or service fees	1,596,387
Shareholder servicing costs	14,167
Administrative services fee	108,042
Independent Trustees’ compensation	12,557
Custodian fee	110,082
Shareholder communications	45,722
Audit and tax fees	88,641
Legal fees	5,945
Miscellaneous	340,658
Total expenses	$7,209,627
Reduction of expenses by investment adviser	(65,682	)
Net expenses	$7,143,945
Net investment income (loss)	$11,065,268

Realized and unrealized gain (loss)
Realized gain (loss) (identified cost basis)
Unaffiliated issuers (net of $23,810 country tax)	$22,856,336
Affiliated issuers	(476	)
Futures contracts	(4,517,236	)
Forward foreign currency exchange contracts	5,099,627
Foreign currency	(240,620	)
Net realized gain (loss)	$23,197,631
Change in unrealized appreciation or depreciation
Unaffiliated issuers (net of $47,477 decrease in deferred country tax)	$(68,223,598	)
Affiliated issuers	251
Futures contracts	(1,837,150	)
Forward foreign currency exchange contracts	3,325,312
Translation of assets and liabilities in foreign currencies	(136,575	)
Net unrealized gain (loss)	$(66,871,760	)
Net realized and unrealized gain (loss)	$(43,674,129	)
Change in net assets from operations	$(32,608,861	)

See Notes to Financial Statements

MFS Global Tactical Allocation Portfolio

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
	12/31/18			12/31/17
Change in net assets

From operations
Net investment income (loss)		$11,065,268			$11,049,781
Net realized gain (loss)		23,197,631			24,717,280
Net unrealized gain (loss)		(66,871,760	)		43,454,716
Change in net assets from operations		$(32,608,861	)		$79,221,777
Total distributions to shareholders (a)		$(33,921,546	)		$(24,775,424	)
Change in net assets from fund share transactions		$(89,026,534	)		$(83,723,186	)
Total change in net assets		$(155,556,941	)		$(29,276,833	)

Net assets
At beginning of period		762,551,623			791,828,456
At end of period (b)		$606,994,682			$762,551,623

(a)	Distributions from net investment income and from net realized gain are no longer required to be separately disclosed. See Note 2. For the year ended December 31, 2017, distributions from net investment income and from net realized gain were $22,895,168 and $1,880,256, respectively.

(b)	Parenthetical disclosure of undistributed net investment income is no longer required. See Note 2. For the year ended December 31, 2017, end of period net assets included undistributed net investment income of $702,927.

See Notes to Financial Statements

MFS Global Tactical Allocation Portfolio

FINANCIAL STATEMENTS ^| FINANCIAL HIGHLIGHTS


Initial Class	Year ended

	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14

Net asset value, beginning of period		$16.11			$15.04			$14.92			$16.43			$16.20

Income (loss) from investment operations
Net investment income (loss) (d)		$0.29			$0.26			$0.29	(c)		$0.29			$0.37
Net realized and unrealized gain (loss)		(0.99	)		1.36			0.67			(0.66	)		0.36
Total from investment operations		$(0.70	)		$1.62			$0.96			$(0.37	)		$0.73

Less distributions declared to shareholders
From net investment income		$(0.13	)		$(0.51	)		$—			$(0.87	)		$(0.48	)
From net realized gain		(0.70	)		(0.04	)		(0.84	)		(0.27	)		(0.02	)
Total distributions declared to shareholders		$(0.83	)		$(0.55	)		$(0.84	)		$(1.14	)		$(0.50	)
Net asset value, end of period (x)		$14.58			$16.11			$15.04			$14.92			$16.43
Total return (%) (k)(r)(s)(x)		(4.50	)		10.83			6.24	(c)		(2.23	)		4.46

Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)		0.81			0.81			0.79	(c)		0.76			0.76
Expenses after expense reductions (f)		0.80			0.80			0.78	(c)		0.75			0.75
Net investment income (loss)		1.83			1.64			1.88	(c)		1.80			2.23
Portfolio turnover		86			35			38			57			32
Net assets at end of period (000 omitted)		$47,517			$56,096			$58,053			$63,253			$76,670

Service Class	Year ended

	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Net asset value, beginning of period		$15.84			$14.79			$14.72			$16.22			$15.99

Income (loss) from investment operations
Net investment income (loss) (d)		$0.24			$0.22			$0.25	(c)		$0.25			$0.33
Net realized and unrealized gain (loss)		(0.98	)		1.34			0.66			(0.66	)		0.35
Total from investment operations		$(0.74	)		$1.56			$0.91			$(0.41	)		$0.68

Less distributions declared to shareholders
From net investment income		$(0.08	)		$(0.47	)		$—			$(0.82	)		$(0.43	)
From net realized gain		(0.70	)		(0.04	)		(0.84	)		(0.27	)		(0.02	)
Total distributions declared to shareholders		$(0.78	)		$(0.51	)		$(0.84	)		$(1.09	)		$(0.45	)
Net asset value, end of period (x)		$14.32			$15.84			$14.79			$14.72			$16.22
Total return (%) (k)(r)(s)(x)		(4.80	)		10.58			5.98	(c)		(2.49	)		4.25

Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)		1.06			1.06			1.04	(c)		1.01			1.01
Expenses after expense reductions (f)		1.05			1.05			1.03	(c)		1.00			1.00
Net investment income (loss)		1.58			1.39			1.63	(c)		1.55			2.00
Portfolio turnover		86			35			38			57			32
Net assets at end of period (000 omitted)		$559,478			$706,456			$733,775			$773,721			$912,616

See Notes to Financial Statements

MFS Global Tactical Allocation Portfolio

Financial Highlights – continued

(c)	Amount reflects aone-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher.

(d)	Per share data is based on average shares outstanding.

(f)	Ratios do not reflect reductions from fees paid indirectly, if applicable.

(k)	The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown.

(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.

(x)	The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes.

See Notes to Financial Statements

MFS Global Tactical Allocation Portfolio

NOTES TO FINANCIAL STATEMENTS

(1)

Business and Organization

MFS Global Tactical Allocation Portfolio (the fund) is a diversified series of MFS Variable Insurance Trust II (the trust). The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as anopen-end management investment company. The shareholders of each series of the trust are separate accounts of insurance companies, which offer variable annuity and/or life insurance products, and qualified retirement and pension plans.

(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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated subsequent events occurring after the date of the fund’s Statement of Assets and Liabilities through the date that the financial statements were issued. The fund invests in derivatives as part of its principal investment strategy. Derivatives can be highly volatile and involve risks in addition to the risks of the underlying indicators on which the derivative is based. Derivatives can involve leverage. The fund invests in foreign securities. Investments in foreign securities are vulnerable to the effects of changes in the relative values of the local currency and the U.S. dollar and to the effects of changes in each country’s market, economic, industrial, political, regulatory, geopolitical, and other conditions.

MFS Global Tactical Allocation Portfolio

Notes to Financial Statements – continued

Exchange-traded options for which there were no sales reported that day are generally valued at the last daily bid quotation on their primary exchange as provided by a third-party pricing service. Options not traded on an exchange are generally valued at a broker/dealer bid quotation. Foreign currency options are generally valued at valuations provided by a third-party pricing service. Futures contracts are generally valued at last posted settlement price on their primary exchange as provided by a third-party pricing service. Futures contracts for which there were no trades that day for a particular position are generally valued at the closing bid quotation on their primary exchange as provided by a third-party pricing service. Forward foreign currency exchange 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.Open-end investment companies are generally valued at net asset value per share. 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. In determining values, third-party pricing services can utilize both transaction data and market information such as 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.

The Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of the 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 the 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 effect 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 the 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 the fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the fund determines its net asset value per share.

MFS Global Tactical Allocation Portfolio

Notes to Financial Statements – continued

assumptions in determining the fair value of investments. Other financial instruments are derivative instruments, such as futures contracts and forward foreign currency exchange contracts. The following is a summary of the levels used as of December 31, 2018 in valuing the fund’s assets or liabilities:


Financial Instruments	Level 1			Level 2			Level 3		Total
Equity Securities:
United States		$104,709,331			$—			$—		$104,709,331
Switzerland		—			17,198,647			—		17,198,647
Japan		—			13,839,331			—		13,839,331
United Kingdom		13,268,662			—			—		13,268,662
France		9,814,473			—			—		9,814,473
Canada		7,027,815			—			—		7,027,815
Germany		6,167,718			—			—		6,167,718
Taiwan		4,352,206			—			—		4,352,206
Netherlands		3,411,073			—			—		3,411,073
Other Countries		9,938,268			2,820,613			—		12,758,881
U.S. Treasury Bonds & U.S. Government Agency & Equivalents		—			53,268,714			—		53,268,714
Non-U.S. Sovereign Debt		—			149,800,787			—		149,800,787
Municipal Bonds		—			913,287			—		913,287
U.S. Corporate Bonds		—			55,881,052			—		55,881,052
Residential Mortgage-Backed Securities		—			53,808,652			—		53,808,652
Commercial Mortgage-Backed Securities		—			6,854,710			—		6,854,710
Asset-Backed Securities (including CDOs)		—			10,565,985			—		10,565,985
Foreign Bonds		—			53,983,161			—		53,983,161
Mutual Funds		24,746,728			—			—		24,746,728
Total		$183,436,274			$418,934,939			$—		$602,371,213

Other Financial Instruments
Futures Contracts – Assets		$5,000,324			$857,300			$—		$5,857,624
Futures Contracts – Liabilities		(6,320,446	)		(1,006,550	)		—		(7,326,996	)
Forward Foreign Currency Exchange Contracts – Assets		—			4,232,803			—		4,232,803
Forward Foreign Currency Exchange Contracts – Liabilities		—			(6,722,188	)		—		(6,722,188	)

For further information regarding security characteristics, see the Portfolio of Investments.

Inflation-Adjusted Debt Securities– The fund invests in inflation-adjusted debt securities issued by the U.S. Treasury. The principal value of these debt securities is adjusted through income according to changes in the Consumer Price Index. These debt securities typically pay a fixed rate of interest, but this fixed rate is applied to the inflation-adjusted principal amount. The principal paid at maturity of the debt security is typically equal to the inflation-adjusted principal amount, or the security’s original par value, whichever is greater. Other types of inflation-adjusted securities may use other methods to adjust for other measures of inflation.

Derivatives– The fund uses derivatives in an attempt to adjust exposure to markets, asset classes, and currencies based on the adviser’s assessment of the relative attractiveness of such markets, asset classes, and currencies. Derivatives are used to increase or decrease the fund’s exposure to markets, asset classes, or currencies resulting from the fund’s individual security selections, and to expose the fund to markets, asset classes, or currencies in which the fund’s individual security selection has resulted in little or no exposure. Derivatives are used for hedging ornon-hedging purposes. While hedging can reduce or eliminate losses, it can also reduce or eliminate gains. When the fund uses derivatives as an investment to increase or decrease market exposure, or for hedging purposes, gains and losses from derivative instruments may be substantially greater than the derivative’s original cost.

The derivative instruments used by the fund during the period were purchased options, futures contracts, and forward foreign currency exchange contracts. Depending on the type of derivative, the fund may exit a derivative position by entering into an

MFS Global Tactical Allocation Portfolio

Notes to Financial Statements – continued

offsetting transaction with a counterparty or exchange, negotiating an agreement with the derivative counterparty, or novating the position to a third party. The fund may be unable to promptly close out a futures position in instances where the daily fluctuation in the price for that type of future exceeds the daily limit set by the exchange. The fund’s period end derivatives, as presented in the Portfolio of Investments and the associated Derivative Contract tables, generally are indicative of the volume of its derivative activity during the period.


		Fair Value (a)
Risk	Derivative Contracts	Asset Derivatives		Liability Derivatives
Interest Rate	Interest Rate Futures		$1,989,669		$(4,544,572	)
Foreign Exchange	Forward Foreign Currency Exchange Contracts		4,232,803		(6,722,188	)
Equity	Equity Futures		3,867,955		(2,782,424	)
Equity	Purchased Equity Options		840,250		—
Total			$10,930,677		$(14,049,184	)

(a)

The value of purchased options outstanding is included in investments in unaffiliated issuers, at value, within the fund’s Statement of Assets and Liabilities. Values presented in this table for futures contracts correspond to the values reported in the fund’s Portfolio of Investments. Only the current day net variation margin for futures contracts is separately reported within the fund’s Statement of Assets and Liabilities.


Risk	Futures Contracts			Forward Foreign Currency Exchange Contracts		Unaffiliated Issuers (Purchased Options)
Interest Rate		$5,466,068			$—		$—
Foreign Exchange		—			5,099,627		—
Equity		(9,983,304	)		—		(115,088	)
Total		$(4,517,236	)		$5,099,627		$(115,088	)


Risk	Futures Contracts			Forward Foreign Currency Exchange Contracts		Unaffiliated Issuers (Purchased Options)
Interest Rate		$(2,895,821	)		$—		$—
Foreign Exchange		—			3,325,312		—
Equity		1,058,671			—		376,051
Total		$(1,837,150	)		$3,325,312		$376,051

one party to the other to collateralize such obligations. Cash that has been segregated or delivered to cover the fund’s collateral or

MFS Global Tactical Allocation Portfolio

Notes to Financial Statements – continued

margin obligations under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities as restricted cash for uncleared derivatives and/or deposits with brokers for cleared derivatives. Securities pledged as collateral or margin for the same purpose, if any, are noted in the Portfolio of Investments. The fund may be required to make payments of interest on uncovered collateral or margin obligations with the broker. Any such payments are included in “Miscellaneous” expense in the Statement of Operations.

The following table presents the fund’s derivative assets and liabilities (by type) on a gross basis as of December 31, 2018:


Gross Amounts of:	Derivative Assets		Derivative Liabilities
Future Contracts (a)		$337,077		$—
Forward Foreign Currency Exchange Contracts		4,232,803		(6,722,188	)
Purchased Options		840,250		—
Total Gross Amount of Derivative Assets and Liabilities Presented in the Statement of Assets & Liabilities		$5,410,130		$(6,722,188	)
Less: Derivatives Assets and Liabilities Not Subject to a Master Netting Agreement or Similar Arrangement		1,533,224		(80,335	)
Total Gross Amount of Derivative Assets and Liabilities Subject to a Master Netting Agreement or Similar Arrangement		$3,876,906		$(6,641,853	)

(a)

The amount presented here represents the fund’s current day net variation margin for futures contracts. This amount, which is recognized within the fund’s Statement of Assets and Liabilities, differs from the fair value of the futures contracts which is presented in the tables that follow the fund’s Portfolio of Investments.

The following table presents (by counterparty) the fund’s derivative assets net of amounts available for offset under Master Netting Agreements (or similar arrangements) and net of the related collateral held by the fund at December 31, 2018:


			Amounts Not Offset in the Statement of Assets & Liabilities

	Gross Amount of Derivative Assets Subject to a Master Netting Agreement (or Similar Arrangement) by Counterparty		Financial Instruments Available for Offset			Financial Instruments Collateral Received (b)		Cash Collateral Received (b)		Net Amount of Derivative Assets by Counterparty
Barclays Bank PLC		$7,191		$(7,191	)		$—		$—		$—
Brown Brothers Harriman		8,389		(8,389	)		—		—		—
Citibank N.A.		246,324		(246,324	)		—		—		—
Deutsche Bank AG		336,904		(178,821	)		—		—		158,083
Goldman Sachs International		1,245,182		(1,245,182	)		—		—		—
JPMorgan Chase Bank N.A.		1,526,983		(1,526,983	)		—		—		—
Merrill Lynch International		493,339		(246,803	)		—		—		246,536
Morgan Stanley Capital Services, Inc.		12,594		(2,380	)		—		—		10,214
Total		$3,876,906		$(3,462,073	)		$—		$—		$414,833

The following table presents (by counterparty) the fund’s derivative liabilities net of amounts available for offset under Master Netting Agreements (or similar arrangements) and net of the related collateral pledged by the fund at December 31, 2018:


				Amounts Not Offset in the Statement of Assets & Liabilities

	Gross Amounts of Derivative Liabilities Subject to a Master Netting Agreement (or Similar Arrangement) by Counterparty			Financial Instruments Available for Offset		Financial Instruments Collateral Pledged (b)		Cash Collateral Pledged (b)		Net Amount of Derivative Liabilities by Counterparty
Barclays Bank PLC		$(49,656	)		$7,191		$—		$—		$(42,465	)
Brown Brothers Harriman		(9,463	)		8,389		—		—		(1,074	)
Citibank N.A.		(279,929	)		246,324		—		—		(33,605	)
Deutsche Bank AG		(178,821	)		178,821		—		—		—
Goldman Sachs International		(2,564,750	)		1,245,182		—		810,000		(509,568	)
JPMorgan Chase Bank N.A.		(3,310,051	)		1,526,983		—		1,543,000		(240,068	)
Merrill Lynch International		(246,803	)		246,803		—		—		—
Morgan Stanley Capital Services, Inc.		(2,380	)		2,380		—		—		—
Total		$(6,641,853	)		$3,462,073		$—		$2,353,000		$(826,780	)

(b)	The amount presented here may be less than the total amount of collateral (received)/pledged as the excess collateral (received)/pledged is not shown for purposes of this presentation.

MFS Global Tactical Allocation Portfolio

Notes to Financial Statements – continued

Purchased Options– The fund purchased put options for a premium. Purchased put options entitle the holder to sell a specified number of shares or units of a particular security, currency or index at a specified price at a specified date or within a specified period of time. Purchasing put options may hedge against an anticipated decline in the value of portfolio securities or currency or decrease the fund’s exposure to an underlying instrument.

The premium paid is initially recorded as an investment in the Statement of Assets and Liabilities. That investment is subsequentlymarked-to-market daily with the difference between the premium paid and the market value of the purchased option being recorded as unrealized appreciation or depreciation. Premiums paid for purchased put options which have expired are treated as realized losses on investments in the Statement of Operations. Upon the exercise or closing of a purchased put option, the premium paid is offset against the proceeds on the sale of the underlying security or financial instrument in order to determine the realized gain or loss on investments.

Whether or not the option is exercised, the fund’s maximum risk of loss from purchasing an option is the amount of premium paid. All option contracts involve credit risk if the counterparty to the option contract fails to perform. For uncleared options, this risk is mitigated in cases where there is an ISDA Master Agreement between the fund and the counterparty providing for netting as described above and, where applicable, by the posting of collateral by the counterparty to the fund to cover the fund’s exposure to the counterparty under such ISDA Master Agreement.

Futures Contracts– The fund entered into futures contracts which may be used to hedge against or obtain broad market exposure, interest rate exposure, currency exposure, or to manage duration. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date.

MFS Global Tactical Allocation Portfolio

Notes to Financial Statements – continued

The lending agent provides the fund with indemnification against Borrower default. In the event of Borrower default, the lending agent will, for the benefit of the fund, either purchase securities identical to those loaned or, when such purchase is commercially impracticable, pay the fund the market value of the loaned securities. In return, the lending agent assumes the fund’s rights to the related collateral. If the collateral value is less than the cost to purchase identical securities, the lending agent is responsible for the shortfall, but only to the extent that such shortfall is not due to a decline in collateral value resulting from collateral reinvestment for which the fund bears the risk of loss. A portion of the income generated upon investment of the collateral is remitted to the Borrowers, and the remainder is allocated between the fund and the lending agent. On loans collateralized by U.S. Treasury and/or federal agency obligations, a fee is received from the Borrower, and is allocated between the fund and the lending agent. Income from securities lending is separately reported in the Statement of Operations. The dividend and interest income earned on the securities loaned is accounted for in the same manner as other dividend and interest income. At December 31, 2018, there were no securities on loan or collateral outstanding.

Investment Transactions and Income– Investment transactions are recorded on the trade date. Interest income is recorded on the accrual basis. All premium and discount is amortized or accreted for financial statement purposes in accordance with U.S. generally accepted accounting principles. Inflation-indexed bonds are fixed-income securities whose principal value is periodically adjusted upward or downward based on the rate of inflation. Interest is accrued based on the principal value, which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond is generally recorded as an increase or decrease in interest income, respectively, even though the adjusted principal is not received until maturity. Dividends received in cash are recorded on theex-dividend date. Certain dividends from foreign securities will be recorded when the fund is informed of the dividend if such information is obtained subsequent to theex-dividend date. Dividend and interest payments received in additional securities are recorded on theex-dividend orex-interest date in an amount equal to the value of the security on such date.

The fund invests a significant portion of its assets in asset-backed and/or mortgage-backed securities. For these securities, the value of the debt instrument also depends on the credit quality and adequacy of the underlying assets or collateral as well as whether there is a security interest in the underlying assets or collateral. Enforcing rights, if any, against the underlying assets or collateral may be difficult. U.S. Government securities not supported as to the payment of principal or interest by the U.S. Treasury, such as those issued by Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, are subject to greater credit risk than are U.S. Government securities supported by the U.S. Treasury, such as those issued by Ginnie Mae.

The fund purchased or sold debt securities on a when-issued or delayed delivery basis, or in a “To Be Announced” (TBA) or “forward commitment” transaction with delivery or payment to occur at a later date beyond the normal settlement period. At the time a fund enters into a commitment to purchase or sell a security, the transaction is recorded and the value of the security acquired is reflected in the fund’s net asset value. The price of such security and the date that the security will be delivered and paid for are fixed at the time the transaction is negotiated. The value of the security may vary with market fluctuations. No interest accrues to the fund until payment takes place. At the time that a fund enters into this type of transaction, the fund is required to have sufficient cash and/or liquid securities to cover its commitments. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract’s terms, or if the issuer does not issue the securities due to political, economic or other factors. Additionally, losses may arise due to declines in the value of the securities prior to settlement date.

To mitigate the counterparty credit risk on TBA securities and other types of forward settling mortgage-backed securities, the fund whenever possible enters into a Master Securities Forward Transaction Agreement (“MSFTA”) on a bilateral basis with each of the counterparties with whom it undertakes a significant volume of transactions. The MSFTA gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a specified deterioration in the credit quality of the other party. Upon an event of default or a termination of the MSFTA, thenon-defaulting party has the right to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the MSFTA could result in a reduction of the fund’s credit risk to such counterparty equal to any amounts payable by the fund under the applicable transactions, if any.

MFS Global Tactical Allocation Portfolio

Notes to Financial Statements – continued

collateralize such obligations. Cash that has been pledged to cover the fund’s collateral or margin obligations under a MSFTA, if any, will be reported separately on the Statement of Assets and Liabilities as restricted cash. Securities pledged as collateral or margin for the same purpose, if any, are noted in the Portfolio of Investments.

Book/tax differences primarily relate to amortization and accretion of debt securities, wash sale loss deferrals, straddle loss deferrals, and derivative transactions.

The tax character of distributions declared to shareholders for the last two fiscal years is as follows:


	Year ended		Year ended
	12/31/18		12/31/17
Ordinary income (including any short-term capital gains)		$16,001,318		$22,895,168
Long-term capital gains		17,920,228		1,880,256
Total distributions		$33,921,546		$24,775,424

The federal tax cost and the tax basis components of distributable earnings were as follows:


As of 12/31/18

Cost of investments	$558,676,457
Gross appreciation	56,848,434
Gross depreciation	(17,112,435	)
Net unrealized appreciation (depreciation)	$39,735,999

Undistributed ordinary income	15,597,284
Undistributed long-term capital gain	13,215,190
Other temporary differences	61,991


	From net investment income				From net realized gain

	Year ended 12/31/18		Year ended 12/31/17		Year ended 12/31/18		Year ended 12/31/17
Initial Class		$407,616		$1,774,948		$2,268,848		$134,500
Service Class		3,217,529		21,120,220		28,027,553		1,745,756
Total		$3,625,145		$22,895,168		$30,296,401		$1,880,256

MFS Global Tactical Allocation Portfolio

Notes to Financial Statements – continued

(3)

Transactions with Affiliates


Up to $300 million			0.75%
In excess of $300 million and up to $2.5 billion			0.675%
In excess of $2.5 billion			0.65%

MFS has agreed in writing to reduce its management fee by a specified amount if certain MFS mutual fund assets exceed thresholds agreed to by MFS and the fund’s Board of Trustees. For the year ended December 31, 2018, this management fee reduction amounted to $65,682, which is included in the reduction of total expenses in the Statement of Operations. The management fee incurred for the year ended December 31, 2018 was equivalent to an annual effective rate of 0.70% of the fund’s average daily net assets.

The investment adviser has agreed in writing to pay a portion of the fund’s total annual operating expenses, excluding interest, taxes, extraordinary expenses, brokerage and transaction costs, and investment-related expenses, such that total annual operating expenses do not exceed 0.90% of average daily net assets for the Initial Class shares and 1.15% of average daily net assets for the Service Class shares. This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until April 30, 2020. For the year ended December 31, 2018, the fund’s actual operating expenses did not exceed the limit and therefore, the investment adviser did not pay any portion of the fund’s expenses related to this agreement.

Shareholder Servicing Agent– MFS Service Center, Inc. (MFSC), a wholly-owned subsidiary of MFS, receives a fee from the fund for its services as shareholder servicing agent. For the year ended December 31, 2018, the fee was $13,916, which equated to 0.0020% annually of the fund’s average daily net assets. MFSC also receives payment from the fund forout-of-pocket expenses paid by MFSC on behalf of the fund. For the year ended December 31, 2018, these costs amounted to $251.

Other– This fund and certain other funds managed by MFS (the funds) have entered into a service agreement (the ISO Agreement) which provides for payment of fees solely by the funds to Tarantino LLC in return for the provision of services of an Independent Senior Officer (ISO) for the funds. Frank L. Tarantino serves as the ISO and is an officer of the funds and the sole member of Tarantino LLC. The funds can terminate the ISO Agreement with Tarantino LLC at any time under the terms of the ISO Agreement. For the year ended December 31, 2018, the fee paid by the fund under this agreement was $1,102 and is included in “Miscellaneous” expense in the Statement of Operations. MFS has agreed to bear all expenses associated with office space, other administrative support, and supplies provided to the ISO.

MFS Global Tactical Allocation Portfolio

Notes to Financial Statements – continued

ensure that cross-trades conducted by the fund comply with Rule17a-7 under the Investment Company Act of 1940. During the year ended December 31, 2018, the fund engaged in sale transactions pursuant to this policy, which amounted to $253,464. The sales transactions resulted in net realized gains (losses) of $52,902.

(4)

Portfolio Securities

For the year ended December 31, 2018, purchases and sales of investments, other than purchased option transactions andshort-term obligations, were as follows:


	Purchases		Sales
U.S. Government securities		$188,601,615		$160,075,267
Non-U.S. Government securities		$372,744,864		$462,046,428

(5)

Shares of Beneficial Interest

The 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:


	Year ended 12/31/18						Year ended 12/31/17

	Shares			Amount			Shares			Amount
Shares sold
Initial Class		80,272			$1,254,421			284,704			$4,549,890
Service Class		437,166			6,748,306			760,671			11,756,151
		517,438			$8,002,727			1,045,375			$16,306,041

Shares issued to shareholders in reinvestment of distributions
Initial Class		177,720			$2,676,464			120,394			$1,909,448
Service Class		2,109,729			31,245,082			1,465,768			22,865,976
		2,287,449			$33,921,546			1,586,162			$24,775,424

Shares reacquired
Initial Class		(479,270	)		$(7,461,633	)		(782,642	)		$(12,462,762	)
Service Class		(8,081,155	)		(123,489,174	)		(7,223,234	)		(112,341,889	)
		(8,560,425	)		$(130,950,807	)		(8,005,876	)		$(124,804,651	)

Net change
Initial Class		(221,278	)		$(3,530,748	)		(377,544	)		$(6,003,424	)
Service Class		(5,534,260	)		(85,495,786	)		(4,996,795	)		(77,719,762	)
		(5,755,538	)		$(89,026,534	)		(5,374,339	)		$(83,723,186	)

(6)

Line of Credit

The fund and certain other funds managed by MFS participate in a $1.25 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 Overnight Bank Funding rate or daily one month LIBOR plus an agreed upon spread. A commitment fee, based on the average daily, unused portion of the committed line of credit, is allocated among the participating funds. In addition, the 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, at a rate equal to the Overnight Bank Funding rate plus an agreed upon spread. For the year ended December 31, 2018, the fund’s commitment fee and interest expense were $4,044 and $0, respectively, and are included in “Miscellaneous” expense in the Statement of Operations.

(7)

Investments in Affiliated Issuers


Affiliated Issuers			Beginning Shares/Par Amount		Acquisitions Shares/Par Amount		Dispositions Shares/Par Amount			Ending Shares/Par Amount

MFS Institutional Money Market Portfolio		��		71,788,272		293,502,840		(340,541,910	)		24,749,202

Affiliated Issuers	Realized Gain (Loss)		Change in Unrealized Appreciation/ Depreciation		Capital Gain Distributions		Dividend Income			Ending Value

MFS Institutional Money Market Portfolio	$(476)			$251		$—		$453,817			$24,746,728

MFS Global Tactical Allocation Portfolio

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees of MFS Variable Insurance Trust II and the Shareholders of

MFS Global Tactical Allocation Portfolio:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities of MFS Global Tactical Allocation Portfolio (the “Fund”), including the portfolio of investments, as of December 31, 2018, the related statement 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of December 31, 2018, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

DELOITTE & TOUCHE LLP

Boston, Massachusetts

February 15, 2019

We have served as the auditor of one or more of the MFS investment companies since 1924.

MFS Global Tactical Allocation Portfolio

TRUSTEES AND OFFICERS – IDENTIFICATION AND BACKGROUND


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds overseen by the Trustee	Principal Occupations During the Past Five Years	Other Directorships During the Past Five Years (j)
INTERESTED TRUSTEES
Robert J. Manning (k) (age 55)	Trustee	February 2004	135	Massachusetts Financial Services Company, Executive Chairman (since January 2017); Director; Chairman of the Board; Chief Executive Officer (until 2015);Co-Chief Executive Officer(2015-2016)	N/A

Robin A. Stelmach (k) (age 57)	Trustee	January 2014	135	Massachusetts Financial Services Company, Vice Chair (since January 2017); Chief Operating Officer and Executive Vice President (until January 2017)	N/A

INDEPENDENT TRUSTEES
John P. Kavanaugh (age 64)	Trustee and Chair of Trustees	January 2009	135	Private investor	N/A

Steven E. Buller (age 67)	Trustee	February 2014	135	Financial Accounting Standards Advisory Council, Chairman(2014-2015); Public Company Accounting Oversight Board, Standing Advisory Group, Member (until 2014); BlackRock, Inc. (investment management), Managing Director (until 2014), BlackRock Finco UK (investment management), Director (until 2014)	N/A

John A. Caroselli (age 64)	Trustee	March 2017	135	JC Global Advisors, LLC (management consulting), President (since 2015); First Capital Corporation (commercial finance), Executive Vice President (until 2015)	N/A

Maureen R. Goldfarb (age 63)	Trustee	January 2009	135	Private investor	N/A

Michael Hegarty (age 74)	Trustee	December 2004	135	Private investor	Rouse Properties Inc., Director (until 2016); Capmark Financial Group Inc., Director (until 2015)

Peter D. Jones (age 63)	Trustee	January 2019	135	Franklin Templeton Distributors, Inc. (investment management), President (until 2015); Franklin Templeton Institutional, LLC (investment management), Chairman (until 2015)	N/A

James W. Kilman, Jr. (age 57)	Trustee	January 2019	135	KielStrand Capital LLC (family office and merchant bank), Chief Executive Officer (since 2016); Morgan Stanley & Co. (financial services), Vice Chairman of Investment Banking,Co-Head of Diversified Financials Coverage – Financial Institutions Investment Banking Group (until 2016)	alpha-En Corporation, Director (since 2016)

MFS Global Tactical Allocation Portfolio

Trustees and Officers – continued


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds overseen by the Trustee	Principal Occupations During the Past Five Years	Other Directorships During the Past Five Years (j)
Clarence Otis, Jr. (age 62)	Trustee	March 2017	135	Darden Restaurants, Inc., Chief Executive Officer (until 2014)	VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director; Federal Reserve Bank of Atlanta, Director (until 2015)

Maryanne L. Roepke (age 62)	Trustee	May 2014	135	American Century Investments (investment management), Senior Vice President and Chief Compliance Officer (until 2014)	N/A

Laurie J. Thomsen (age 61)	Trustee	March 2005	135	Private investor	The Travelers Companies, Director; Dycom Industries, Inc., Director (since 2015)


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds for which the Person is an Officer	Principal Occupations During the Past Five Years
OFFICERS
Christopher R. Bohane (k) (age 45)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Vice President and Assistant General Counsel

Kino Clark (k) (age 50)	Assistant Treasurer	January 2012	135	Massachusetts Financial Services Company, Vice President

John W. Clark, Jr. (k) (age 51)	Assistant Treasurer	April 2017	135	Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head – Treasurer’s Office (until February 2017)

Thomas H. Connors (k) (age 59)	Assistant Secretary and Assistant Clerk	September 2012	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Ethan D. Corey (k) (age 55)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel

David L. DiLorenzo (k) (age 50)	President	July 2005	135	Massachusetts Financial Services Company, Senior Vice President

Heidi W. Hardin (k) (age 51)	Secretary and Clerk	April 2017	135	Massachusetts Financial Services Company, Executive Vice President and General Counsel (since March 2017); Harris Associates (investment management), General Counsel (from September 2015 to January 2017); Janus Capital Management LLC (investment management), Senior Vice President and General Counsel (until September 2015)

Brian E. Langenfeld (k) (age 45)	Assistant Secretary and Assistant Clerk	June 2006	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Amanda S. Mooradian (k) (age 39)	Assistant Secretary and Assistant Clerk	September 2018	135	Massachusetts Financial Services Company, Assistant Vice President and Counsel

Susan A. Pereira (k) (age 48)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Kasey L. Phillips (k) (age 48)	Assistant Treasurer	September 2012	135	Massachusetts Financial Services Company, Vice President

Matthew A. Stowe (k) (age 44)	Assistant Secretary and Assistant Clerk	October 2014	135	Massachusetts Financial Services Company, Vice President and Assistant General Counsel

MFS Global Tactical Allocation Portfolio

Trustees and Officers – continued


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds for which the Person is an Officer	Principal Occupations During the Past Five Years
Frank L. Tarantino (age 74)	Independent Senior Officer	June 2004	135	Tarantino LLC (provider of compliance services), Principal

Richard S. Weitzel (k) (age 48)	Assistant Secretary and Assistant Clerk	October 2007	135	Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel

Martin J. Wolin (k) (age 51)	Chief Compliance Officer	July 2015	135	Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer (since July 2015); Mercer (financial service provider), Chief Risk and Compliance Officer, North America and Latin America (until June 2015)

James O. Yost (k) (age 58)	Treasurer	September 1990	135	Massachusetts Financial Services Company, Senior Vice President

(h)

(j)	Directorships or trusteeships of companies required to report to the Securities and Exchange Commission (i.e., “public companies”).

(k)

Messrs. Buller, Hegarty, Kilman and Otis and Ms. Roepke are members of the Trust’s Audit Committee.

Each of the Interested Trustees and certain Officers hold comparable officer positions with certain affiliates of MFS.

The Statement of Additional Information for a Fund includes further information about the Trustees and is available without charge upon request by calling1-800-225-2606.


Investment Adviser Massachusetts Financial Services Company 111 Huntington Avenue Boston, MA 02199-7618		Custodian State Street Bank and Trust Company 1 Lincoln Street Boston, MA 02111-2900
Distributor MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618		Independent Registered Public Accounting Firm Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116
Portfolio Manager(s) Nevin Chitkara Pilar Gomez-Bravo Steven Gorham Vipin Narula Ben Nastou Robert Persons Jonathan Sage Natalie Shapiro Robert Spector Erik Weisman

MFS Global Tactical Allocation Portfolio

BOARD REVIEW OF INVESTMENT ADVISORY AGREEMENT

Based on information provided by Broadridge and MFS, the Trustees reviewed the Fund’s total return investment performance as well as the Broadridge performance universe over various time periods. The Trustees placed particular emphasis on the total return performance of the Fund’s Initial Class shares in comparison to the performance of funds in its Broadridge performance universe over the three-year period ended December 31, 2017, which the Trustees believed was a long enough period to reflect differing market conditions. The total return performance of the Fund’s Initial Class shares was in the 2nd quintile relative to the other funds in the universe for this three-year period (the 1st quintile being the best performers and the 5th quintile being the worst performers). The total return performance of the Fund’s Initial Class shares was in the 1st quintile for theone-year period and the 2nd quintile for the five-year period ended December 31, 2017 relative to the Broadridge performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.

MFS Global Tactical Allocation Portfolio

Board Review of Investment Advisory Agreement – continued

The Trustees also considered whether the Fund may benefit from any economies of scale in the management of the Fund in the event of growth in assets of the Fund and/or growth in assets of the MFS Funds as a whole. They noted that the Fund’s advisory fee rate schedule is subject to contractual breakpoints that reduce the Fund’s advisory fee rate on average daily net assets over $300 million and $2.5 billion. The Trustees also noted that MFS has agreed in writing to waive a portion of the management fees of certain MFS Funds, including the Fund, if the total combined assets of certain funds within the MFS Funds’ complex increase above agreed upon thresholds (the “group fee waiver”), enabling the Fund’s shareholders to share in the benefits from any economies of scale at the complex level. The group fee waiver is reviewed and renewed annually between the Board and MFS. The Trustees concluded that the breakpoints and the group fee waiver were sufficient to allow the Fund to benefit from economies of scale as its assets and overall complex assets grow.

MFS Global Tactical Allocation Portfolio

PROXY VOTING POLICIES AND INFORMATION

QUARTERLY PORTFOLIO DISCLOSURE

FURTHER INFORMATION

INFORMATION ABOUT FUND CONTRACTS AND LEGAL CLAIMS

FEDERAL TAX INFORMATION (unaudited)

The following information is provided pursuant to provisions of the Internal Revenue Code.

The fund designates $19,713,000 as capital gain dividends paid during the fiscal year.

For corporate shareholders, 19.64% of the ordinary income dividends paid during the fiscal year qualify for the corporate dividends received deduction.

rev. 3/16



FACTS		WHAT DOES MFS DO WITH YOUR PERSONAL INFORMATION?


Why?		Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.

What?

The types of personal information we collect and share depend on the product or service you have with us. This information can include:

• Social Security number and account balances

• Account transactions and transaction history

• Checking account information and wire transfer instructions

When you areno longer our customer, we continue to share your information as described in this notice.


How?		All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons MFS chooses to share; and whether you can limit this sharing.


Reasons we can share your personal information	Does MFS share?	Can you limit this sharing?
For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes – to offer our products and services to you	No	We don’t share
For joint marketing with other financial companies	No	We don’t share
For our affiliates’ everyday business purposes – information about your transactions and experiences	No	We don’t share
For our affiliates’ everyday business purposes – information about your creditworthiness	No	We don’t share
For nonaffiliates to market to you	No	We don’t share



Questions?		Call800-225-2606 or go tomfs.com.


Page 2


Who we are
Who is providing this notice?		MFS Funds, MFS Investment Management, MFS Institutional Advisors, Inc., and MFS Heritage Trust Company.


What we do
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Annual Report

December 31, 2018

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MFS^® Government Securities Portfolio

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MFS^® Variable Insurance Trust II

GSS-ANN

MFS® Government Securities Portfolio

CONTENTS


Letter from the Executive Chairman			1
Portfolio composition			2
Management review			4
Performance summary			5
Expense table			6
Portfolio of investments			7
Statement of assets and liabilities			11
Statement of operations			12
Statements of changes in net assets			13
Financial highlights			14
Notes to financial statements			16
Report of independent registered public accounting firm			23
Trustees and officers			24
Board review of investment advisory agreement			27
Proxy voting policies and information			29
Quarterly portfolio disclosure			29
Further information			29
Information about fund contracts and legal claims			29
MFS^® privacy notice			30

The report is prepared for the general information of contract owners. 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 OR CREDIT UNION GUARANTEE• NOT A DEPOSIT• NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY OR NCUA/NCUSIF

MFS Government Securities Portfolio

LETTER FROM THE EXECUTIVE CHAIRMAN

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Dear Contract Owners:

Respectfully,

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Robert J. Manning

Executive Chairman

MFS Investment Management

February 15, 2019

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

MFS Government Securities Portfolio

PORTFOLIO COMPOSITION

Portfolio structure (i)

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Fixed income sectors (i)
Mortgage-Backed Securities			58.4%
U.S. Treasury Securities			22.0%
U.S. Government Agencies			9.5%
Investment Grade Corporates			3.8%
Commercial Mortgage-Backed Securities			2.1%
Collateralized Debt Obligations			2.0%
Municipal Bonds			1.9%
Asset-Backed Securities			0.6%
Non-U.S. Government Bonds			0.3%


Composition including fixed income credit quality (a)(i)
AAA			4.2%
AA			2.2%
A			2.7%
BBB			1.6%
U.S. Government			21.5%
Federal Agencies			67.9%
Not Rated			0.5%
Cash & Cash Equivalents			(0.1)%
Other			(0.5)%

Portfolio facts (i)
Average Duration (d)			5.7
Average Effective Maturity (m)			8.0 yrs.

(a)

For all securities other than those specifically described below, ratings are assigned to underlying securities utilizing ratings from Moody’s, Fitch, and Standard & Poor’s rating agencies and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). Securities rated BBB or higher are considered investment grade. All ratings are subject to change. U.S. Government includes securities issued by the U.S. Department of the Treasury. Federal Agencies includes rated and unrated U.S. Agency fixed-income securities, U.S. Agency mortgage-backed securities, and collateralized mortgage obligations of U.S. Agency mortgage-backed securities. Not Rated includes fixed income securities and fixed income derivatives, which have not been rated by any rating agency. The fund may or may not have held all of these instruments on this date. The fund is not rated by these agencies.

(d)

(i)

(m)

Where the fund holds convertible bonds, they are treated as part of the equity portion of the portfolio.

MFS Government Securities Portfolio

Portfolio Composition – continued

From time to time Cash & Cash Equivalents may be negative due to timing of cash receipts and disbursements.

Other includes equivalent exposure from currency derivatives and/or any offsets to derivative positions and may be negative.

Percentages are based on net assets as of December 31, 2018.

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

MFS Government Securities Portfolio

MANAGEMENT REVIEW

Summary of Results

For the twelve months ended December 31, 2018, Initial Class shares of the MFS Government Securities Portfolio (“fund”) provided a total return of 0.47%, while Service Class shares of the fund provided a total return of 0.17%. These compare with a return of 0.93% over the same period for the fund’s benchmark, the Bloomberg Barclays U.S. Government/Mortgage Bond Index.

Market Environment

During the reporting period, the US Federal Reserve raised interest rates by 100 basis points, bringing the total number of rate hikes to nine since the central bank began to normalize monetary policy in late 2015. Economic growth rates in the US, Eurozone and Japan remained above trend, despite a slowing in global growth, particularly toward the end of the period. Inflation remained contained, particularly outside the US. Late in the period, the European Central Bank halted its asset purchase program but issued forward guidance that it does not expect to raise interest rates at least until after the summer of 2019. The Bank of England (once) and the Bank of Canada (three times) each raised rates during the period. The European political backdrop became a bit more volatile, late in the period, spurred by concerns over cohesion in the Eurozone after the election of an anti-establishment, Eurosceptic coalition government in Italy and widespread protests over stagnant wage growth in France.

Factors Affecting Performance

Relative to the Bloomberg Barclays U.S. Government/Mortgage Bond Index, the fund’snon-benchmark exposure to both thecommercial mortgage-backed securities (CMBS) andcorporatebond sectors was a detractor from performance as general credit spread widening led these sectors to underperform.

Conversely, the fund’s shorter duration (d) stance aided relative returns as interest rates generally rose throughout the reporting period. Additionally, security selection within themortgage-backed securities (MBS) Agency Fixed Ratesector benefited relative results.

Respectfully,

Portfolio Manager(s)

Geoffrey Schechter and Jake Stone

(d)	Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value.

Note to Shareholders: Effective September 1, 2018, Jake Stone became a Portfolio Manager of the Fund.

MFS Government Securities Portfolio

PERFORMANCE SUMMARY THROUGH 12/31/18

Growth of a Hypothetical $10,000 Investment

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Total Returns through 12/31/18

Average annual total returns


	Share Class	Class Inception Date	1-yr	5-yr	10-yr
	Initial Class	6/12/85	0.47%	1.80%	2.53%
	Service Class	8/24/01	0.17%	1.55%	2.26%

Comparative benchmark(s)
	Bloomberg Barclays U.S. Government/Mortgage Bond Index (f)		0.93%	2.22%	2.61%

(f)	Source: FactSet Research Systems Inc.

Benchmark Definition(s)

Bloomberg Barclays U.S. Government/Mortgage Bond Index – measures debt issued by the U.S. Government, and its agencies, as well as mortgage-backed pass-through securities of Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC).

It is not possible to invest directly in an index.

Notes to Performance Summary

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

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

MFS Government Securities Portfolio

EXPENSE TABLE

Fund Expenses Borne by the Contract Holders during the Period,

July 1, 2018 through December 31, 2018

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period July 1, 2018 through December 31, 2018.

Actual Expenses

Hypothetical Example for Comparison Purposes


Share Class		Annualized Expense Ratio		Beginning Account Value 7/01/18		Ending Account Value 12/31/18		Expenses Paid During Period (p) 7/01/18-12/31/18
Initial Class	Actual		0.58%		$1,000.00		$1,016.17		$2.95
Initial Class	Hypothetical (h)		0.58%		$1,000.00		$1,022.28		$2.96
Service Class	Actual		0.83%		$1,000.00		$1,014.05		$4.21
Service Class	Hypothetical (h)		0.83%		$1,000.00		$1,021.02		$4.23

(h)	5% class return per year before expenses.

(p)	“Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect theone-half year period).

MFS Government Securities Portfolio

PORTFOLIO OF INVESTMENTS – 12/31/18

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



Issuer	Shares/Par		Value ($)
BONDS – 99.6%
Asset-Backed & Securitized – 4.7%
A Voce CLO Ltd.,2014-1A, “A1R”, FLR, 3.596% (LIBOR - 3mo. + 1.16%), 7/15/2026 (n)	$	2,195,423	$	2,194,305
Chesapeake Funding II LLC,2018-1A, “A1”, 3.04%, 4/15/2030 (z)		1,144,932		1,144,157
Chesapeake Funding II LLC,2018-3A, “A1”, 3.39%, 1/15/2031 (z)		1,700,000		1,699,677
Commercial Mortgage Trust,2015-DC1, “A5”, 3.35%, 2/10/2048		1,536,000		1,523,966
Commercial Mortgage Trust, 2017-COR2, “A3”, 3.51%, 9/10/2050		1,414,455		1,390,035
CSAIL Commercial Mortgage Trust,2015-C2, “A4”, 3.504%, 6/15/2057		144,366		144,321
Dryden Senior Loan Fund,2018-55A, “A1”, CLO, FLR, 3.456% (LIBOR - 3mo. + 1.02%), 4/15/2031 (n)		1,537,212		1,514,956
GS Mortgage Securities Trust, 2015-GC30, “A4”, 3.382%, 5/10/2050		1,965,000		1,950,625
Loomis, Sayles & Co., CLO, “A2”, FLR, 3.836% (LIBOR - 3mo. + 1.4%), 4/15/2028 (n)		1,489,774		1,454,465
Madison Park Funding Ltd.,2014-13A, “BR2”, FLR, 3.949% (LIBOR - 3mo. + 1.5%), 4/19/2030 (n)		1,572,067		1,526,266
Morgan Stanley Bank of America Merrill Lynch Trust,2017-C34, “A4”, 3.536%, 11/15/2052		415,862		410,096
Morgan Stanley Capital I Trust,2018-H4, “XA”, 0.868%, 12/15/2051 (i)		6,278,789		410,595
Symphony CLO Ltd.,2016-17A, “BR”, FLR, 3.636% (LIBOR - 3mo. + 1.2%), 4/15/2028 (n)		1,332,260		1,298,013
TICP CLO Ltd., FLR, 3.309% (LIBOR - 3mo. + 0.8%), 4/20/2028 (n)		1,261,352		1,243,026
UBS Commercial Mortgage Trust,2017-C1, “A4”, 3.544%, 11/15/2050		968,000		958,882
Wells Fargo Commercial Mortgage Trust,2015-C28, “A4”, 3.54%, 5/15/2048		1,937,516		1,939,602
Wells Fargo Commercial Mortgage Trust, 2015-NXS1, “A5”, 3.148%, 5/15/2048		918,829		902,291
Wells Fargo Commercial Mortgage Trust,2018-C48, “XA” , 0.957%, 1/15/2052 (i)(z)		3,757,641		274,263
West CLO Ltd.2013-1A, “A1AR”, FLR, 3.749% (LIBOR - 3mo. + 1.16%), 11/07/2025 (n)		452,640		452,417

			$	22,431,958

Business Services – 0.3%
Cisco Systems, Inc., 2.6%, 2/28/2023	$	1,271,000	$	1,245,725

Chemicals – 0.3%
Sherwin Williams Co., 2.75%, 6/01/2022	$	1,673,000	$	1,619,402



Issuer	Shares/Par		Value ($)
BONDS – continued
Computer Software – 0.1%
Microsoft Corp., 3.125%, 11/03/2025	$	541,000	$	535,329

Computer Software – Systems – 0.3%
Apple, Inc., 3.25%, 2/23/2026	$	1,696,000	$	1,656,329

Conglomerates – 0.2%
United Technologies Corp., 3.95%, 8/16/2025	$	764,000	$	758,426

Consumer Products – 0.3%
Reckitt Benckiser Treasury Services PLC, 2.75%, 6/26/2024 (n)	$	1,311,000	$	1,238,955

Food & Beverages – 0.2%
Anheuser-Busch InBev Finance, Inc., 2.65%, 2/01/2021	$	977,000	$	960,299

Local Authorities – 0.2%
Philadelphia, PA, School District Rev.,
“A”, AGM, 5.995%, 9/01/2030	$	960,000	$	1,132,579

Major Banks – 0.1%
UBS Group Funding (Switzerland) AG, 3.491%, 5/23/2023 (n)	$	565,000	$	550,972

Medical & Health Technology & Services – 0.4%
Montefiore Obligated Group, 5.246%, 11/01/2048	$	2,012,000	$	2,106,186

Mortgage-Backed – 58.3%
Fannie Mae, 5.6%, 1/01/2019	$	326,393	$	325,674
Fannie Mae, 5%, 4/01/2019 - 3/01/2041		5,271,287		5,589,255
Fannie Mae, 5.5%, 5/01/2019 - 3/01/2038		7,332,328		7,891,742
Fannie Mae, 4.5%, 6/01/2019 - 6/01/2044		15,614,683		16,339,283
Fannie Mae, 4.785%, 8/01/2019		1,294,696		1,305,646
Fannie Mae, 5.05%, 8/01/2019		289,246		291,594
Fannie Mae, 4.67%, 9/01/2019		495,388		500,357
Fannie Mae, 1.99%, 10/01/2019		917,079		915,175
Fannie Mae, 4.14%, 8/01/2020		412,101		419,823
Fannie Mae, 6%, 2/01/2021 - 7/01/2037		911,588		991,005
Fannie Mae, 2.56%, 10/01/2021		226,970		225,206
Fannie Mae, 2.67%, 3/01/2022		435,781		433,300
Fannie Mae, 2.152%, 1/25/2023		1,600,000		1,561,095
Fannie Mae, 2.73%, 4/01/2023		492,730		490,001
Fannie Mae, 2.41%, 5/01/2023		621,837		613,701
Fannie Mae, 2.55%, 5/01/2023		535,054		530,981
Fannie Mae, 2.59%, 5/01/2023		341,234		339,166
Fannie Mae, 3.5%, 5/25/2025 - 1/01/2047		25,719,862		25,836,995
Fannie Mae, 2.28%, 11/01/2026		262,018		249,090
Fannie Mae, 2.597%, 12/25/2026		1,032,000		982,084
Fannie Mae, 3.043%, 3/25/2028		1,276,000		1,241,151
Fannie Mae, 3.23%, 1/01/2029		873,383		861,946
Fannie Mae, 6.5%, 9/01/2031 - 10/01/2037		756,507		849,801
Fannie Mae, 3%, 12/01/2031 - 11/01/2046		14,095,680		13,904,908
Fannie Mae, 4%, 9/01/2040 - 2/01/2045		34,948,618		35,930,899
Fannie Mae, 2%, 5/25/2044		753,904		727,140
Fannie Mae, TBA, 2.5%, 1/17/2034		875,000		854,553

MFS Government Securities Portfolio

Portfolio of Investments – continued



Issuer	Shares/Par		Value ($)
BONDS – continued
Mortgage-Backed – continued
Fannie Mae, TBA, 3%, 1/17/2034	$	3,600,000	$	3,592,272
Fannie Mae, TBA, 3.5%, 1/17/2034		3,075,000		3,112,507
Freddie Mac, 2.086%, 3/25/2019		1,288,712		1,285,380
Freddie Mac, 1.883%, 5/25/2019		3,438,049		3,425,570
Freddie Mac, 6%, 8/01/2019 - 10/01/2038		2,502,907		2,714,449
Freddie Mac, 2.456%, 8/25/2019		1,236,312		1,231,934
Freddie Mac, 4.186%, 8/25/2019		814,000		816,221
Freddie Mac, 1.869%, 11/25/2019		2,573,177		2,551,603
Freddie Mac, 4.251%, 1/25/2020		1,449,000		1,461,929
Freddie Mac, 2.313%, 3/25/2020		1,473,554		1,462,799
Freddie Mac, 4.224%, 3/25/2020		1,854,785		1,877,796
Freddie Mac, 5%, 4/01/2020 - 6/01/2040		1,000,683		1,057,773
Freddie Mac, 3.808%, 8/25/2020		999,000		1,008,632
Freddie Mac, 3.034%, 10/25/2020		1,318,347		1,317,759
Freddie Mac, 2.455%, 3/25/2022		1,066,892		1,057,873
Freddie Mac, 5.5%, 5/01/2022 - 6/01/2041		1,773,218		1,913,727
Freddie Mac, 2.716%, 6/25/2022		1,616,064		1,605,176
Freddie Mac,4.5%, 11/01/2022 - 5/01/2042		2,754,463		2,878,452
Freddie Mac, 2.51%, 11/25/2022		2,326,000		2,291,160
Freddie Mac, 3.32%, 2/25/2023		1,993,000		2,020,938
Freddie Mac, 3.25%, 4/25/2023		3,500,000		3,539,250
Freddie Mac,3.3%, 4/25/2023 - 10/25/2026		4,406,044		4,444,075
Freddie Mac, 3.06%, 7/25/2023		1,286,000		1,291,212
Freddie Mac, 0.881%, 4/25/2024 (i)		16,676,689		631,113
Freddie Mac, 0.618%, 7/25/2024 (i)		17,843,369		500,856
Freddie Mac, 3.064%, 8/25/2024		1,703,107		1,707,889
Freddie Mac, 2.67%, 12/25/2024		3,924,000		3,844,736
Freddie Mac, 2.811%, 1/25/2025		3,025,000		2,983,818
Freddie Mac, 3.329%, 5/25/2025		3,082,000		3,123,916
Freddie Mac, 4%, 7/01/2025 - 4/01/2044		2,594,741		2,659,891
Freddie Mac, 3.01%, 7/25/2025		904,000		899,194
Freddie Mac, 2.745%, 1/25/2026		2,656,000		2,591,058
Freddie Mac, 3.224%, 3/25/2027		2,380,000		2,375,408
Freddie Mac, 3.243%, 4/25/2027		2,062,000		2,058,583
Freddie Mac, 3.117%, 6/25/2027		1,490,000		1,473,556
Freddie Mac, 0.578%, 7/25/2027 (i)		30,010,367		1,261,351
Freddie Mac, 3.194%, 7/25/2027		2,152,000		2,137,661
Freddie Mac, 0.436%, 8/25/2027 (i)		25,147,000		803,615
Freddie Mac, 3.187%, 9/25/2027		4,857,000		4,812,004
Freddie Mac, 3.286%, 11/25/2027		2,115,000		2,108,780
Freddie Mac, 3.444%, 12/25/2027		722,000		728,497
Freddie Mac, 0.29%, 1/25/2028 (i)		42,816,064		1,046,442
Freddie Mac, 0.302%, 1/25/2028 (i)		17,629,911		444,757
Freddie Mac, 0.134%, 2/25/2028 (i)		49,882,900		662,545
Freddie Mac, 0.119%, 4/25/2028 (i)		32,061,154		398,921
Freddie Mac, 3.85%, 5/25/2028		1,423,000		1,479,728
Freddie Mac, 6.5%, 8/01/2032 - 5/01/2037		465,659		525,764
Freddie Mac,3.5%, 11/01/2037 - 1/01/2047		29,615,095		29,777,690
Freddie Mac, 3%, 1/01/2038 - 11/01/2046		17,432,704		17,102,111
Ginnie Mae, 5.5%, 7/15/2033 - 1/20/2042		1,661,134		1,791,103
Ginnie Mae, 4.5%, 8/15/2039 - 9/20/2041		3,886,420		4,075,188
Ginnie Mae, 4%, 10/15/2039 - 4/20/2041		811,117		836,080



Issuer	Shares/Par		Value ($)
BONDS – continued
Mortgage-Backed – continued
Ginnie Mae, 3.5%, 12/15/2041 - 6/20/2043	$	5,364,214	$	5,427,234
Ginnie Mae, 3%, 11/20/2047 - 2/20/2048		11,126,467		10,950,783
Ginnie Mae, 6.158%, 4/20/2058		38,428		40,282
Ginnie Mae, 0.659%, 2/16/2059 (i)		2,319,533		140,476
Ginnie Mae, TBA, 3.5%, 1/23/2049		1,400,000		1,409,548

			$	280,970,636

Municipals – 1.7%
New Jersey Economic Development Authority State Pension Funding Rev., Capital Appreciation, “B”, 0%, 2/15/2023	$	4,114,000	$	3,520,926
State of California (Build America Bonds), 7.6%, 11/01/2040		1,935,000		2,817,766
University of California Rev. (Build America Bonds), 5.77%, 5/15/2043		1,345,000		1,618,318

			$	7,957,010

Other Banks & Diversified Financials – 0.6%
Banque Federative du Credit Mutuel S.A., 2.5%, 4/13/2021 (n)	$	1,492,000	$	1,463,747
ING Groep N.V., 3.15%, 3/29/2022		1,606,000		1,579,010

			$	3,042,757

Restaurants – 0.3%
Starbucks Corp., 3.8%, 8/15/2025	$	1,651,000	$	1,633,445

Supranational – 0.3%
Inter-American Development Bank, 4.375%, 1/24/2044	$	1,093,000	$	1,293,775

Tobacco – 0.3%
B.A.T Capital Corp., 2.764%, 8/15/2022	$	1,283,000	$	1,211,890

U.S. Government Agencies and Equivalents – 9.4%
AID-Tunisia, 2.452%, 7/24/2021	$	1,444,000	$	1,432,428
AID-Ukraine, 1.844%, 5/16/2019		2,527,000		2,520,162
AID-Ukraine, 1.847%, 5/29/2020		1,135,000		1,122,913
Federal Home Loan Bank, 2.375%, 3/30/2020		5,500,000		5,487,289
Federal Home Loan Bank, 2.625%, 12/10/2021		4,800,000		4,812,744
Federal Home Loan Bank, 3%, 12/10/2021		20,500,000		20,709,305
Hashemite Kingdom of Jordan, 1.945%, 6/23/2019		2,205,000		2,196,380
Private Export Funding Corp., 2.25%, 3/15/2020		594,000		591,055
Private Export Funding Corp., 2.3%, 9/15/2020		770,000		764,026
Small Business Administration, 6.35%, 4/01/2021		34,826		35,596
Small Business Administration, 6.34%, 5/01/2021		45,770		46,689
Small Business Administration, 6.44%, 6/01/2021		80,111		82,262
Small Business Administration, 6.625%, 7/01/2021		95,269		97,357
Small Business Administration, 6.07%, 3/01/2022		80,128		82,205

MFS Government Securities Portfolio

Portfolio of Investments – continued



Issuer	Shares/Par		Value ($)
BONDS – continued
U.S. Government Agencies and Equivalents – continued
Small Business Administration, 4.98%, 11/01/2023	$	105,108	$	108,826
Small Business Administration, 4.77%, 4/01/2024		261,695		269,265
Small Business Administration, 5.52%, 6/01/2024		111,818		116,358
Small Business Administration, 4.99%, 9/01/2024		20,928		21,650
Small Business Administration, 5.11%, 4/01/2025		163,845		169,431
Small Business Administration, 2.21%, 2/01/2033		834,734		812,711
Small Business Administration, 2.22%, 3/01/2033		1,454,364		1,416,096
Small Business Administration, 3.15%, 7/01/2033		1,350,126		1,379,962
Small Business Administration, 3.16%, 8/01/2033		736,964		753,336
Small Business Administration, 3.62%, 9/01/2033		484,497		500,492

			$	45,528,538

U.S. Treasury Obligations – 21.3%
U.S. Treasury Bonds, 7.875%, 2/15/2021	$	177,000	$	196,446
U.S. Treasury Bonds, 6.25%, 8/15/2023		2,891,000		3,358,009
U.S. Treasury Bonds, 6%, 2/15/2026		2,699,000		3,294,376
U.S. Treasury Bonds, 6.75%, 8/15/2026		1,862,000		2,395,004
U.S. Treasury Bonds, 6.375%, 8/15/2027		326,000		419,169



Issuer	Shares/Par		Value ($)
BONDS – continued
U.S. Treasury Obligations – continued
U.S. Treasury Bonds, 4.5%, 8/15/2039	$	1,287,500	$	1,606,632
U.S. Treasury Bonds, 3.125%, 2/15/2043		8,176,700		8,355,195
U.S. Treasury Bonds, 2.875%, 5/15/2043		13,519,500		13,221,538
U.S. Treasury Bonds, 2.5%, 2/15/2045		21,059,000		19,120,548
U.S. Treasury Bonds, 2.875%, 11/15/2046		2,917,000		2,841,332
U.S. Treasury Notes, 1.75%, 11/30/2021		4,800,000		4,702,977
U.S. Treasury Notes, 1.75%, 5/15/2022		6,594,000		6,439,123
U.S. Treasury Notes, 2.5%, 8/15/2023 (f)		25,869,000		25,860,355
U.S. Treasury Notes, 2.5%, 5/15/2024		5,385,000		5,375,052
U.S. Treasury Notes, 2.875%, 7/31/2025		5,161,000		5,253,004
U.S. Treasury Notes, 2%, 8/15/2025		438,000		422,405

			$	102,861,165

Utilities – Electric Power – 0.3%
Enel Finance International N.V., 2.875%, 5/25/2022 (n)	$	1,518,000	$	1,430,201

Total Bonds (Identified Cost, $483,835,927)			$	480,165,577


INVESTMENT COMPANIES (h) – 0.0%
Money Market Funds – 0.0%
MFS Institutional Money Market Portfolio, 2.4% (v) (Identified Cost, $26,672)		26,675	$	26,672

OTHER ASSETS, LESS LIABILITIES – 0.4%				2,133,702

NET ASSETS – 100.0%			$	482,325,951

(f)

All or a portion of the security has been segregated as collateral for open futures contracts.

(h)

(i)

Interest only security for which the fund receives interest on notional principal (Par amount). Par amount shown is the notional principal and does not reflect the cost of the security.

(n)

(v)

(z)


Restricted Securities	Acquisition Date	Cost		Value

Chesapeake Funding II LLC,2018-1A, “A1”, 3.04%, 4/15/2030	12/19/18		$1,141,363		$1,144,157

Chesapeake Funding II LLC,2018-3A, “A1”, 3.39%, 1/15/2031	12/04/18		1,699,678		1,699,677

Wells Fargo Commercial Mortgage Trust,2018-C48, “XA”, 0.957%, 1/15/2052	12/10/18		273,733		274,263

Total Restricted Securities					$3,118,097

% of Net assets					0.6%

The following abbreviations are used in this report and are defined:

AGM

Assured Guaranty Municipal

CLO

Collateralized Loan Obligation

MFS Government Securities Portfolio

Portfolio of Investments – continued

FLR

LIBOR

London Interbank Offered Rate

PLC

Public Limited Company

TBA

To Be Announced

Derivative Contracts at 12/31/18

Futures Contracts

Description

Long/
Short

Currency

Contracts

Notional
Amount

Expiration
Date

Value/
Unrealized
Appreciation
(Depreciation)

Asset Derivatives

Interest Rate Futures

U.S. Treasury Note 2 yr

Long

USD

$7,430,938

March - 2019

$48,001

Liability Derivatives

Interest Rate Futures

U.S. Treasury Bond 30 yr

Short

USD

$4,964,000

March - 2019

$(170,656

)

At December 31, 2018, the fund had liquid securities with an aggregate value of $92,969 to cover any collateral or margin obligations for certain derivative contracts.

See Notes to Financial Statements

MFS Government Securities Portfolio

FINANCIAL STATEMENTS ^| STATEMENT OF ASSETS AND LIABILITIES

This statement represents your fund’s balance sheet, which details the assets and liabilities comprising the total value of the fund.


At 12/31/18
Assets
Investments in unaffiliated issuers, at value (identified cost, $483,835,927)	$480,165,577
Investments in affiliated issuers, at value (identified cost, $26,672)	26,672
Cash	344
Receivables for
Investments sold	9,867,855
Fund shares sold	9,907
Interest	2,369,988
Other assets	3,283
Total assets	$492,443,626
Liabilities
Payables for
Net daily variation margin on open futures contracts	$11,028
TBA purchase commitments	8,916,191
Fund shares reacquired	1,071,054
Payable to affiliates
Investment adviser	24,331
Shareholder servicing costs	69
Distribution and/or service fees	4,700
Payable for independent Trustees’ compensation	19
Accrued expenses and other liabilities	90,283
Total liabilities	$10,117,675
Net assets	$482,325,951
Net assets consist of
Paid-in capital	$502,216,321
Total distributable earnings (loss)	(19,890,370	)
Net assets	$482,325,951
Shares of beneficial interest outstanding	40,161,615


	Net assets		Shares outstanding		Net asset value per share
Initial Class		$310,387,496		25,789,435		$12.04
Service Class		171,938,455		14,372,180		11.96

See Notes to Financial Statements

MFS Government Securities Portfolio

FINANCIAL STATEMENTS ^| STATEMENT OF OPERATIONS

This statement describes how much your fund earned in investment income and accrued in expenses. It also describes any gains and/or losses generated by fund operations.


Year ended 12/31/18
Net investment income (loss)
Income
Interest	$15,927,390
Dividends from affiliated issuers	190,927
Other	10,119
Total investment income	$16,128,436
Expenses
Management fee	$2,918,442
Distribution and/or service fees	484,883
Shareholder servicing costs	8,340
Administrative services fee	85,326
Independent Trustees’ compensation	12,279
Custodian fee	30,328
Shareholder communications	34,161
Audit and tax fees	62,354
Legal fees	4,571
Miscellaneous	40,235
Total expenses	$3,680,919
Reduction of expenses by investment adviser	(75,095	)
Net expenses	$3,605,824
Net investment income (loss)	$12,522,612
Realized and unrealized gain (loss)
Realized gain (loss) (identified cost basis)
Unaffiliated issuers	$(2,255,292	)
Affiliated issuers	(2,069	)
Futures contracts	11,977
Net realized gain (loss)	$(2,245,384	)
Change in unrealized appreciation or depreciation
Unaffiliated issuers	$(9,625,169	)
Affiliated issuers	327
Futures contracts	(78,651	)
Net unrealized gain (loss)	$(9,703,493	)
Net realized and unrealized gain (loss)	$(11,948,877	)
Change in net assets from operations	$573,735

See Notes to Financial Statements

MFS Government Securities Portfolio

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
	12/31/18			12/31/17
Change in net assets

From operations
Net investment income (loss)		$12,522,612			$14,129,796
Net realized gain (loss)		(2,245,384	)		(673,000	)
Net unrealized gain (loss)		(9,703,493	)		(599,914	)
Change in net assets from operations		$573,735			$12,856,882
Total distributions to shareholders (a)		$(16,541,275	)		$(17,852,246	)
Change in net assets from fund share transactions		$(78,202,132	)		$(43,797,662	)
Total change in net assets		$(94,169,672	)		$(48,793,026	)

Net assets
At beginning of period		576,495,623			625,288,649
At end of period (b)		$482,325,951			$576,495,623

(a)	Distributions from net investment income and from net realized gain are no longer required to be separately disclosed. See Note 2. For the year ended December 31, 2017, distributions from net investment income were $17,852,246.

(b)	Parenthetical disclosure of undistributed net investment income is no longer required. See Note 2. For the year ended December 31, 2017, end of period net assets included undistributed net investment income of $16,539,111.

See Notes to Financial Statements

MFS Government Securities Portfolio

FINANCIAL STATEMENTS ^| FINANCIAL HIGHLIGHTS


Initial Class	Year ended
	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Net asset value, beginning of period		$12.39			$12.51			$12.72			$13.02			$12.73
Income (loss) from investment operations
Net investment income (loss) (d)		$0.30			$0.31			$0.31	(c)		$0.27			$0.26
Net realized and unrealized gain (loss)		(0.25	)		(0.03	)		(0.17	)		(0.21	)		0.35
Total from investment operations		$0.05			$0.28			$0.14			$0.06			$0.61
Less distributions declared to shareholders
From net investment income		$(0.40	)		$(0.40	)		$(0.35	)		$(0.36	)		$(0.32	)
Net asset value, end of period (x)		$12.04			$12.39			$12.51			$12.72			$13.02
Total return (%) (k)(r)(s)(x)		0.47			2.22			1.04	(c)		0.47			4.86
Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)		0.60			0.60			0.57	(c)		0.60			0.60
Expenses after expense reductions (f)		0.59			0.60			0.56	(c)		0.59			0.59
Net investment income (loss)		2.45			2.45			2.40	(c)		2.09			2.04
Portfolio turnover		35			24			48			81			61
Net assets at end of period (000 omitted)		$310,387			$364,445			$388,457			$424,025			$484,573

Service Class	Year ended
	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Net asset value, beginning of period		$12.31			$12.42			$12.64			$12.93			$12.63
Income (loss) from investment operations
Net investment income (loss) (d)		$0.26			$0.27			$0.28	(c)		$0.24			$0.23
Net realized and unrealized gain (loss)		(0.24	)		(0.02	)		(0.18	)		(0.21	)		0.36
Total from investment operations		$0.02			$0.25			$0.10			$0.03			$0.59
Less distributions declared to shareholders
From net investment income		$(0.37	)		$(0.36	)		$(0.32	)		$(0.32	)		$(0.29	)
Net asset value, end of period (x)		$11.96			$12.31			$12.42			$12.64			$12.93
Total return (%) (k)(r)(s)(x)		0.17			2.03			0.68	(c)		0.26			4.67
Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)		0.85			0.85			0.82	(c)		0.85			0.85
Expenses after expense reductions (f)		0.84			0.85			0.81	(c)		0.84			0.84
Net investment income (loss)		2.20			2.20			2.15	(c)		1.84			1.79
Portfolio turnover		35			24			48			81			61
Net assets at end of period (000 omitted)		$171,938			$212,050			$236,831			$256,958			$299,520

See Notes to Financial Statements

MFS Government Securities Portfolio

Financial Highlights – continued

(c)	Amount reflects aone-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher.

(d)	Per share data is based on average shares outstanding.

(f)	Ratios do not reflect reductions from fees paid indirectly, if applicable.

(k)	The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown.

(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.

(x)	The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes.

See Notes to Financial Statements

MFS Government Securities Portfolio

NOTES TO FINANCIAL STATEMENTS

(1)

Business and Organization

MFS Government Securities Portfolio (the fund) is a diversified series of MFS Variable Insurance Trust II (the trust). The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as anopen-end management investment company. The shareholders of each series of the trust are separate accounts of insurance companies, which offer variable annuity and/or life insurance products, and qualified retirement and pension plans.

(2)

Significant Accounting Policies

Investment Valuations– Debt instruments and floating rate loans, 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 may be valued at amortized cost, which approximates market value. Futures contracts are generally valued at last posted settlement price on their primary exchange as provided by a third-party pricing service. Futures contracts for which there were no trades that day for a particular position are generally valued at the closing bid quotation on their primary exchange as provided by a third-party pricing service.Open-end investment companies are generally valued at net asset value per share. 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. In determining values, third-party pricing services can utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics, and other market data.

MFS Government Securities Portfolio

Notes to Financial Statements – continued

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 the 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. 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 the 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 the fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the fund determines its net asset value per share.

Various inputs are used in determining the value of the fund’s assets or liabilities. These inputs are categorized into three broad levels. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fund’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted 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, such as futures contracts. The following is a summary of the levels used as of December 31, 2018 in valuing the fund’s assets or liabilities:


Financial Instruments	Level 1			Level 2		Level 3		Total
U.S. Treasury Bonds & U.S. Government Agency & Equivalents		$—			$148,389,703		$—		$148,389,703
Non-U.S. Sovereign Debt		—			1,293,775		—		1,293,775
Municipal Bonds		—			9,089,589		—		9,089,589
U.S. Corporate Bonds		—			10,515,140		—		10,515,140
Residential Mortgage-Backed Securities		—			280,970,636		—		280,970,636
Commercial Mortgage-Backed Securities		—			9,904,676		—		9,904,676
Asset-Backed Securities (including CDOs)		—			12,527,282		—		12,527,282
Foreign Bonds		—			7,474,776		—		7,474,776
Mutual Funds		26,672			—		—		26,672
Total		$26,672			$480,165,577		$—		$480,192,249

Other Financial Instruments
Futures Contracts – Assets		$48,001			$—		$—		$48,001
Futures Contracts – Liabilities		(170,656	)		—		—		(170,656	)

For further information regarding security characteristics, see the Portfolio of Investments.

The derivative instruments used by the fund during the period were futures contracts. Depending on the type of derivative, the fund may exit a derivative position by entering into an offsetting transaction with a counterparty or exchange, negotiating an agreement with the derivative counterparty, or novating the position to a third party. The fund may be unable to promptly close out a futures position in instances where the daily fluctuation in the price for that type of future exceeds the daily limit set by the exchange. The fund’s period end derivatives, as presented in the Portfolio of Investments and the associated Derivative Contract tables, generally are indicative of the volume of its derivative activity during the period.

MFS Government Securities Portfolio

Notes to Financial Statements – continued


		Fair Value (a)
Risk	Derivative Contracts	Asset Derivatives		Liability Derivatives
Interest Rate	Interest Rate Futures		$48,001		$(170,656	)

(a)	Values presented in this table for futures contracts correspond to the values reported in the fund’s Portfolio of Investments. Only the current day net variation margin for futures contracts is separately reported within the fund’s Statement of Assets and Liabilities.


Risk	Futures Contracts
Interest Rate		$11,977


Risk	Futures Contracts
Interest Rate		$(78,651	)

Futures Contracts– The fund entered into futures contracts which may be used to hedge against or obtain broad market exposure, interest rate exposure, or to manage duration. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date.

The fund bears the risk of interest rates or securities prices moving unexpectedly, in which case, the fund may not achieve the anticipated benefits of the futures contracts and may realize a loss. While futures contracts may present less counterparty risk to the fund since the contracts are exchange traded and the exchange’s clearinghouse guarantees payments to the broker, there is still counterparty credit risk due to the insolvency of the broker. The fund’s maximum risk of loss due to counterparty credit risk is equal to the margin posted by the fund to the broker plus any gains or minus any losses on the outstanding futures contracts.

Dollar Roll Transactions– The fund enters into dollar roll transactions, with respect to mortgage-backed securities issued by Ginnie Mae, Fannie Mae, and Freddie Mac, in which the fund sells mortgage-backed securities to financial institutions and simultaneously

MFS Government Securities Portfolio

Notes to Financial Statements – continued

agrees to purchase similar (same issuer, type and coupon) securities at a later date at an agreed-upon price. During the period between the sale and repurchase in a dollar roll transaction the fund will not be entitled to receive interest and principal payments on the securities sold but is compensated by interest earned on the proceeds of the initial sale and by a lower purchase price on the securities to be repurchased which enhances the fund’s total return. The fund accounts for dollar roll transactions as purchases and sales and realizes gains and losses on these transactions.

The fund purchased or sold debt securities on a when-issued or delayed delivery basis, or in a “To Be Announced” (TBA) or “forward commitment” transaction with delivery or payment to occur at a later date beyond the normal settlement period. At the time a fund enters into a commitment to purchase or sell a security, the transaction is recorded and the value of the security acquired is reflected in the fund’s net asset value. The price of such security and the date that the security will be delivered and paid for are fixed at the time the transaction is negotiated. The value of the security may vary with market fluctuations. TBA securities resulting from these transactions are included in the Portfolio of Investments. TBA purchase commitments are held at carrying amount, which approximates fair value and are categorized as level 2 within the fair value hierarchy. No interest accrues to the fund until payment takes place. At the time that a fund enters into this type of transaction, the fund is required to have sufficient cash and/or liquid securities to cover its commitments. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract’s terms, or if the issuer does not issue the securities due to political, economic or other factors. Additionally, losses may arise due to declines in the value of the securities prior to settlement date.

For mortgage-backed securities traded under a MSFTA, the collateral and margining requirements are contract specific. Collateral amounts across all transactions traded under such agreement are netted and one amount is posted from one party to the other to collateralize such obligations. Cash that has been pledged to cover the fund’s collateral or margin obligations under a MSFTA, if any, will be reported separately on the Statement of Assets and Liabilities as restricted cash. Securities pledged as collateral or margin for the same purpose, if any, are noted in the Portfolio of Investments.

MFS Government Securities Portfolio

Notes to Financial Statements – continued

any, have been accrued by the fund in the accompanying financial statements in accordance with the applicable foreign tax law. Foreign income taxes may be withheld by certain countries in which the fund invests. Additionally, capital gains realized by the fund on securities issued in or by certain foreign countries may be subject to capital gains tax imposed by those countries.

Book/tax differences primarily relate to amortization and accretion of debt securities and wash sale loss deferrals.

The tax character of distributions declared to shareholders for the last two fiscal years is as follows:


	Year ended 12/31/18		Year ended 12/31/17
Ordinary income (including any short-term capital gains)		$16,541,275		$17,852,246

The federal tax cost and the tax basis components of distributable earnings were as follows:


As of 12/31/18

Cost of investments	$487,353,481
Gross appreciation	6,560,323
Gross depreciation	(13,844,210	)
Net unrealized appreciation (depreciation)	$(7,283,887	)

Undistributed ordinary income	13,608,126
Capital loss carryforwards	(26,214,609	)


Short-Term	$(6,565,848	)
Long-Term	(19,648,761	)
Total	$(26,214,609	)


	From net investment income
	Year ended 12/31/18		Year ended 12/31/17
Initial Class		$10,880,020		$11,609,362
Service Class		5,661,255		6,242,884
Total		$16,541,275		$17,852,246

(3)

Transactions with Affiliates


Up to $1 billion			0.55%
In excess of $1 billion			0.50%

MFS has agreed in writing to reduce its management fee by a specified amount if certain MFS mutual fund assets exceed thresholds agreed to by MFS and the fund’s Board of Trustees. For the year ended December 31, 2018, this management fee reduction amounted to $50,502, which is included in the reduction of total expenses in the Statement of Operations. The management fee incurred for the year ended December 31, 2018 was equivalent to an annual effective rate of 0.54% of the fund’s average daily net assets.

MFS Government Securities Portfolio

Notes to Financial Statements – continued

For the period from January 1, 2018 through July 31, 2018, the investment adviser had agreed in writing to pay a portion of the fund’s total annual operating expenses, excluding interest, taxes, extraordinary expenses, brokerage and transaction costs, andinvestment-related expenses, such that total annual operating expenses did not exceed 0.61% of average daily net assets for the Initial Class shares and 0.86% of average daily net assets for the Service Class shares. This written agreement terminated on July 31, 2018. For the period from January 1, 2018 through July 31, 2018, the fund’s actual operating expenses did not exceed the limit and therefore, the investment adviser did not pay any portion of the fund’s expenses related to this agreement. Effective August 1, 2018, the investment adviser has agreed in writing to pay a portion of the fund’s total annual operating expenses, excluding interest, taxes, extraordinary expenses, brokerage and transaction costs, and investment-related expenses, such that total annual operating expenses do not exceed 0.58% of average daily net assets for the Initial Class shares and 0.83% of average daily net assets for the Service Class shares. This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until April 30, 2020. For the period from August 1, 2018 through December 31, 2018, this reduction amounted to $24,593, which is included in the reduction of total expenses in the Statement of Operations.

Shareholder Servicing Agent– MFS Service Center, Inc. (MFSC), a wholly-owned subsidiary of MFS, receives a fee from the fund for its services as shareholder servicing agent. For the year ended December 31, 2018, the fee was $7,935, which equated to 0.0015% annually of the fund’s average daily net assets. MFSC also receives payment from the fund forout-of-pocket expenses paid by MFSC on behalf of the fund. For the year ended December 31, 2018, these costs amounted to $405.

Other– This fund and certain other funds managed by MFS (the funds) have entered into a service agreement (the ISO Agreement) which provides for payment of fees solely by the funds to Tarantino LLC in return for the provision of services of an Independent Senior Officer (ISO) for the funds. Frank L. Tarantino serves as the ISO and is an officer of the funds and the sole member of Tarantino LLC. The funds can terminate the ISO Agreement with Tarantino LLC at any time under the terms of the ISO Agreement. For the year ended December 31, 2018, the fee paid by the fund under this agreement was $904 and is included in “Miscellaneous” expense in the Statement of Operations. MFS has agreed to bear all expenses associated with office space, other administrative support, and supplies provided to the ISO.

(4)

Portfolio Securities

For the year ended December 31, 2018, purchases and sales of investments, other than short-term obligations, were as follows:


	Purchases		Sales
U.S. Government securities		$128,706,492		$176,646,547
Non-U.S. Government securities		$53,018,161		$48,651,480

MFS Government Securities Portfolio

Notes to Financial Statements – continued

(5)

Shares of Beneficial Interest

The 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:


	Year ended 12/31/18						Year ended 12/31/17

	Shares			Amount			Shares			Amount
Shares sold
Initial Class		420,018			$5,061,750			808,666			$10,123,347
Service Class		642,376			7,707,935			1,401,695			17,378,499
		1,062,394			$12,769,685			2,210,361			$27,501,846

Shares issued to shareholders in reinvestment of distributions
Initial Class		916,598			$10,880,020			933,228			$11,609,362
Service Class		479,361			5,661,255			504,679			6,242,884
		1,395,959			$16,541,275			1,437,907			$17,852,246

Shares reacquired
Initial Class		(4,972,729	)		$(59,818,993	)		(3,378,602	)		$(42,475,081	)
Service Class		(3,978,973	)		(47,694,099	)		(3,738,170	)		(46,676,673	)
		(8,951,702	)		$(107,513,092	)		(7,116,772	)		$(89,151,754	)

Net change
Initial Class		(3,636,113	)		$(43,877,223	)		(1,636,708	)		$(20,742,372	)
Service Class		(2,857,236	)		(34,324,909	)		(1,831,796	)		(23,055,290	)
		(6,493,349	)		$(78,202,132	)		(3,468,504	)		$(43,797,662	)

The fund is one of several mutual funds in which certain MFS funds may invest. The MFS funds do not invest in the underlying funds for the purpose of exercising management or control. At the end of the period, the MFS Moderate Allocation Portfolio and the MFS Conservative Allocation Portfolio were the owners of record of approximately 29% and 10%, respectively, of the value of outstanding voting shares of the fund.

(6)

Line of Credit

The fund and certain other funds managed by MFS participate in a $1.25 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 Overnight Bank Funding rate or daily one month LIBOR plus an agreed upon spread. A commitment fee, based on the average daily, unused portion of the committed line of credit, is allocated among the participating funds. In addition, the 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, at a rate equal to the Overnight Bank Funding rate plus an agreed upon spread. For the year ended December 31, 2018, the fund’s commitment fee and interest expense were $3,073 and $0, respectively, and are included in “Miscellaneous” expense in the Statement of Operations.

(7)

Investments in Affiliated Issuers


Affiliated Issuers		Beginning Shares/Par Amount		Acquisitions Shares/Par Amount		Dispositions Shares/Par Amount			Ending Shares/Par Amount

MFS Institutional Money Market Portfolio			36,877,651		128,104,631		(164,955,607	)		26,675

Affiliated Issuers	Realized Gain (Loss)	Change in Unrealized Appreciation/ Depreciation		Capital Gain Distributions		Dividend Income			Ending Value

MFS Institutional Money Market Portfolio	$(2,069)		$327		$—		$190,927			$26,672

MFS Government Securities Portfolio

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees of MFS Variable Insurance Trust II and the Shareholders of

MFS Government Securities Portfolio:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities of MFS Government Securities Portfolio (the “Fund”), including the portfolio of investments, as of December 31, 2018, the related statement 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of December 31, 2018, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

DELOITTE & TOUCHE LLP

Boston, Massachusetts

February 15, 2019

We have served as the auditor of one or more of the MFS investment companies since 1924.

MFS Government Securities Portfolio

TRUSTEES AND OFFICERS – IDENTIFICATION AND BACKGROUND


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds overseen by the Trustee	Principal Occupations During the Past Five Years	Other Directorships During the Past Five Years (j)
INTERESTED TRUSTEES
Robert J. Manning (k) (age 55)	Trustee	February 2004	135	Massachusetts Financial Services Company, Executive Chairman (since January 2017); Director; Chairman of the Board; Chief Executive Officer (until 2015);Co-Chief Executive Officer(2015-2016)	N/A

Robin A. Stelmach (k) (age 57)	Trustee	January 2014	135	Massachusetts Financial Services Company, Vice Chair (since January 2017); Chief Operating Officer and Executive Vice President (until January 2017)	N/A

INDEPENDENT TRUSTEES
John P. Kavanaugh (age 64)	Trustee and Chair of Trustees	January 2009	135	Private investor	N/A

Steven E. Buller (age 67)	Trustee	February 2014	135	Financial Accounting Standards Advisory Council, Chairman(2014-2015); Public Company Accounting Oversight Board, Standing Advisory Group, Member (until 2014); BlackRock, Inc. (investment management), Managing Director (until 2014), BlackRock Finco UK (investment management), Director (until 2014)	N/A

John A. Caroselli (age 64)	Trustee	March 2017	135	JC Global Advisors, LLC (management consulting), President (since 2015); First Capital Corporation (commercial finance), Executive Vice President (until 2015)	N/A

Maureen R. Goldfarb (age 63)	Trustee	January 2009	135	Private investor	N/A

Michael Hegarty (age 74)	Trustee	December 2004	135	Private investor	Rouse Properties Inc., Director (until 2016); Capmark Financial Group Inc., Director (until 2015)

Peter D. Jones (age 63)	Trustee	January 2019	135	Franklin Templeton Distributors, Inc. (investment management), President (until 2015); Franklin Templeton Institutional, LLC (investment management), Chairman (until 2015)	N/A

James W. Kilman, Jr. (age 57)	Trustee	January 2019	135	KielStrand Capital LLC (family office and merchant bank), Chief Executive Officer (since 2016); Morgan Stanley & Co. (financial services), Vice Chairman of Investment Banking,Co-Head of Diversified Financials Coverage – Financial Institutions Investment Banking Group (until 2016)	alpha-En Corporation, Director (since 2016)

MFS Government Securities Portfolio

Trustees and Officers – continued


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds overseen by the Trustee	Principal Occupations During the Past Five Years	Other Directorships During the Past Five Years (j)
Clarence Otis, Jr. (age 62)	Trustee	March 2017	135	Darden Restaurants, Inc., Chief Executive Officer (until 2014)	VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director; Federal Reserve Bank of Atlanta, Director (until 2015)

Maryanne L. Roepke (age 62)	Trustee	May 2014	135	American Century Investments (investment management), Senior Vice President and Chief Compliance Officer (until 2014)	N/A

Laurie J. Thomsen (age 61)	Trustee	March 2005	135	Private investor	The Travelers Companies, Director; Dycom Industries, Inc., Director (since 2015)


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds for which the Person is an Officer	Principal Occupations During the Past Five Years
OFFICERS
Christopher R. Bohane (k) (age 45)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Vice President and Assistant General Counsel

Kino Clark (k) (age 50)	Assistant Treasurer	January 2012	135	Massachusetts Financial Services Company, Vice President

John W. Clark, Jr. (k) (age 51)	Assistant Treasurer	April 2017	135	Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head – Treasurer’s Office (until February 2017)

Thomas H. Connors (k) (age 59)	Assistant Secretary and Assistant Clerk	September 2012	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Ethan D. Corey (k) (age 55)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel

David L. DiLorenzo (k) (age 50)	President	July 2005	135	Massachusetts Financial Services Company, Senior Vice President

Heidi W. Hardin (k) (age 51)	Secretary and Clerk	April 2017	135	Massachusetts Financial Services Company, Executive Vice President and General Counsel (since March 2017); Harris Associates (investment management), General Counsel (from September 2015 to January 2017); Janus Capital Management LLC (investment management), Senior Vice President and General Counsel (until September 2015)

Brian E. Langenfeld (k) (age 45)	Assistant Secretary and Assistant Clerk	June 2006	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Amanda S. Mooradian (k) (age 39)	Assistant Secretary and Assistant Clerk	September 2018	135	Massachusetts Financial Services Company, Assistant Vice President and Counsel

Susan A. Pereira (k) (age 48)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Kasey L. Phillips (k) (age 48)	Assistant Treasurer	September 2012	135	Massachusetts Financial Services Company, Vice President

Matthew A. Stowe (k) (age 44)	Assistant Secretary and Assistant Clerk	October 2014	135	Massachusetts Financial Services Company, Vice President and Assistant General Counsel

MFS Government Securities Portfolio

Trustees and Officers – continued


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds for which the Person is an Officer	Principal Occupations During the Past Five Years
Frank L. Tarantino (age 74)	Independent Senior Officer	June 2004	135	Tarantino LLC (provider of compliance services), Principal

Richard S. Weitzel (k) (age 48)	Assistant Secretary and Assistant Clerk	October 2007	135	Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel

Martin J. Wolin (k) (age 51)	Chief Compliance Officer	July 2015	135	Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer (since July 2015); Mercer (financial service provider), Chief Risk and Compliance Officer, North America and Latin America (until June 2015)

James O. Yost (k) (age 58)	Treasurer	September 1990	135	Massachusetts Financial Services Company, Senior Vice President

(h)

(j)	Directorships or trusteeships of companies required to report to the Securities and Exchange Commission (i.e., “public companies”).

(k)

Messrs. Buller, Hegarty, Kilman and Otis and Ms. Roepke are members of the Trust’s Audit Committee.

Each of the Interested Trustees and certain Officers hold comparable officer positions with certain affiliates of MFS.

The Statement of Additional Information for a Fund includes further information about the Trustees and is available without charge upon request by calling1-800-225-2606.


Investment Adviser Massachusetts Financial Services Company 111 Huntington Avenue Boston, MA 02199-7618		Custodian State Street Bank and Trust Company 1 Lincoln Street Boston, MA 02111-2900
Distributor MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618		Independent Registered Public Accounting Firm Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116
Portfolio Manager(s) Geoffrey Schechter Jake Stone

MFS Government Securities Portfolio

BOARD REVIEW OF INVESTMENT ADVISORY AGREEMENT

Based on information provided by Broadridge and MFS, the Trustees reviewed the Fund’s total return investment performance as well as the Broadridge performance universe over various time periods. The Trustees placed particular emphasis on the total return performance of the Fund’s Initial Class shares in comparison to the performance of funds in its Broadridge performance universe over the three-year period ended December 31, 2017, which the Trustees believed was a long enough period to reflect differing market conditions. The total return performance of the Fund’s Initial Class shares was in the 2nd quintile relative to the other funds in the universe for this three-year period (the 1st quintile being the best performers and the 5th quintile being the worst performers). The total return performance of the Fund’s Initial Class shares was in the 2nd quintile for each of theone- and five-year periods ended December 31, 2017 relative to the Broadridge performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.

MFS Government Securities Portfolio

Board Review of Investment Advisory Agreement – continued

In assessing the reasonableness of the Fund’s advisory fee, the Trustees considered, among other information, the Fund’s advisory fee and the total expense ratio of the Fund’s Initial Class shares as a percentage of average daily net assets and the advisory fee and total expense ratios of peer groups of funds based on information provided by Broadridge. The Trustees considered that MFS currently observes an expense limitation for the Fund, which may not be changed without the Trustees’ approval. The Trustees also considered that, according to the data provided by Broadridge (which takes into account any fee reductions or expense limitations that were in effect during the Fund’s last fiscal year), the Fund’s effective advisory fee rate was higher than the Broadridge expense group median and the Fund’s total expense ratio was approximately at the Broadridge expense group median. The Trustees also noted that MFS has agreed to further reduce such expense limitation for the Fund effective August 1, 2018, which may not be changed without the Trustees’ approval.

The Trustees also considered whether the Fund may benefit from any economies of scale in the management of the Fund in the event of growth in assets of the Fund and/or growth in assets of the MFS Funds as a whole. They noted that the Fund’s advisory fee rate schedule is subject to a contractual breakpoint that reduces the Fund’s advisory fee rate on average daily net assets over $1 billion. The Trustees also noted that MFS has agreed in writing to waive a portion of the management fees of certain MFS Funds, including the Fund, if the total combined assets of certain funds within the MFS Funds’ complex increase above agreed upon thresholds (the “group fee waiver”), enabling the Fund’s shareholders to share in the benefits from any economies of scale at the complex level. The group fee waiver is reviewed and renewed annually between the Board and MFS. The Trustees concluded that the breakpoint and the group fee waiver were sufficient to allow the Fund to benefit from economies of scale as its assets and overall complex assets grow.

MFS Government Securities Portfolio

PROXY VOTING POLICIES AND INFORMATION

QUARTERLY PORTFOLIO DISCLOSURE

The fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website athttp://www.sec.gov. A shareholder can obtain the portfolio holdings report for the first and third quarters of the fund’s fiscal year atmfs.com/vit2 by choosing the fund’s name and then selecting the “Resources” tab and clicking on “Prospectus and Reports”.

FURTHER INFORMATION

INFORMATION ABOUT FUND CONTRACTS AND LEGAL CLAIMS

rev. 3/16



FACTS		WHAT DOES MFS DO WITH YOUR PERSONAL INFORMATION?


Why?		Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.

What?

The types of personal information we collect and share depend on the product or service you have with us. This information can include:

• Social Security number and account balances

• Account transactions and transaction history

• Checking account information and wire transfer instructions

When you areno longer our customer, we continue to share your information as described in this notice.


How?		All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons MFS chooses to share; and whether you can limit this sharing.


Reasons we can share your personal information	Does MFS share?	Can you limit this sharing?
For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes – to offer our products and services to you	No	We don’t share
For joint marketing with other financial companies	No	We don’t share
For our affiliates’ everyday business purposes – information about your transactions and experiences	No	We don’t share
For our affiliates’ everyday business purposes – information about your creditworthiness	No	We don’t share
For nonaffiliates to market to you	No	We don’t share



Questions?		Call800-225-2606 or go tomfs.com.


Page 2


Who we are
Who is providing this notice?		MFS Funds, MFS Investment Management, MFS Institutional Advisors, Inc., and MFS Heritage Trust Company.


What we do
How does MFS protect my personal information?		To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include procedural, electronic, and physical safeguards for the protection of the personal information we collect about you.
How does MFS collect my personal information?		We collect your personal information, for example, when you • open an account or provide account information • direct us to buy securities or direct us to sell your securities • make a wire transfer We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can’t I limit all sharing?		Federal law gives you the right to limit only • sharing for affiliates’ everyday business purposes – information about your creditworthiness • affiliates from using your information to market to you • sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing.


Definitions
Affiliates		Companies related by common ownership or control. They can be financial and nonfinancial companies. • MFS does not share personal information with affiliates, except for everyday business purposes as described on page one of this notice.
Nonaffiliates		Companies not related by common ownership or control. They can be financial and nonfinancial companies. • MFS does not share with nonaffiliates so they can market to you.
Joint marketing		A formal agreement between nonaffiliated financial companies that together market financial products or services to you. • MFS doesn’t jointly market.


Other important information
If you own an MFS product or receive an MFS service in the name of a third party such as a bank or broker-dealer, their privacy policy may apply to you instead of ours.

LOGO

Annual Report

December 31, 2018

LOGO

MFS^® High Yield Portfolio

LOGO

MFS^® Variable Insurance Trust II

HYS-ANN

MFS® High Yield Portfolio

CONTENTS


Letter from the Executive Chairman			1
Portfolio composition			2
Management review			3
Performance summary			5
Expense table			6
Portfolio of investments			7
Statement of assets and liabilities			14
Statement of operations			15
Statements of changes in net assets			16
Financial highlights			17
Notes to financial statements			18
Report of independent registered public accounting firm			26
Trustees and officers			27
Board review of investment advisory agreement			30
Proxy voting policies and information			32
Quarterly portfolio disclosure			32
Further information			32
Information about fund contracts and legal claims			32
MFS^® privacy notice			33

The report is prepared for the general information of contract owners. 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 OR CREDIT UNION GUARANTEE• NOT A DEPOSIT• NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY OR NCUA/NCUSIF

MFS High Yield Portfolio

LETTER FROM THE EXECUTIVE CHAIRMAN

LOGO

Dear Contract Owners:

Respectfully,

LOGO

Robert J. Manning

Executive Chairman

MFS Investment Management

February 15, 2019

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

MFS High Yield Portfolio

PORTFOLIO COMPOSITION

Portfolio structure (i)

LOGO


Top five industries (i)
Cable TV			8.5%
Midstream			5.8%
Medical & Health Technology & Services			5.6%
Energy-Independent			5.4%
Containers			5.2%


Composition including fixed income credit quality (a)(i)
BBB			1.7%
BB			52.3%
B			34.1%
CCC			9.0%
CC			0.3%
C (o)			0.0%
Not Rated			(1.7)%
Non-Fixed Income			0.4%
Cash & Cash Equivalents			1.9%
Other			2.0%

Portfolio facts (i)
Average Duration (d)			4.4
Average Effective Maturity (m)			6.4 yrs.

(a)

For all securities other than those specifically described below, ratings are assigned to underlying securities utilizing ratings from Moody’s, Fitch, and Standard & Poor’s rating agencies and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). Securities rated BBB or higher are considered investment grade. All ratings are subject to change. Not Rated includes fixed income securities and fixed income derivatives, which have not been rated by any rating agency.Non-Fixed Income includes any equity securities (including convertible bonds and equity derivatives) and/or commodity-linked derivatives. The fund may or may not have held all of these instruments on this date. The fund is not rated by these agencies.

(d)

Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a5-year duration is likely to lose about 5.00% of its value due to the interest rate move.

(i)

(m)

(o)

Less than 0.1%.

Where the fund holds convertible bonds, they are treated as part of the equity portion of the portfolio.

Other includes equivalent exposure from currency derivatives and/or any offsets to derivative positions.

Percentages are based on net assets as of December 31, 2018.

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

MFS High Yield Portfolio

MANAGEMENT REVIEW

Summary of Results

For the twelve months ended December 31, 2018, Initial Class shares of the MFS High Yield Portfolio (“fund”) provided a total return of –3.08%, while Service Class shares of the fund provided a total return of –3.24%. These compare with a return of –2.08% over the same period for the fund’s benchmark, the Bloomberg Barclays U.S. High-Yield Corporate Bond 2% Issuer Capped Index.

Market Environment

Detractors from Performance

Relative to the Bloomberg Barclays U.S. High-Yield Corporate Bond 2% Issuer Capped Index, the fund’s security selection detracted from performance over the reporting period. From a quality perspective, selection inB-rated (r) bonds, particularly in thecommunications,energy,consumernon-cyclicalsandelectric sectors, weighed on relative performance.

Top individual detractors for the reporting period included overweight exposures to independent exploration and production companies Alta Mesa Resources (energy) and Sanchez Energy (energy) and mobile telecommunication services provider Digicel Group (communications).

Contributors to Performance

During the reporting period, the fund’s asset allocation decisions supported relative performance, led by an underweight exposure to the poor-performingenergy sector. From a quality perspective, the fund’s underweight exposure toCCC-rated bonds helped relative results.

The fund’s yield curve (y) positioning, particularly the fund’s lesser exposure to shifts in the short end (centered around maturities of two or less years) of the yield curve was another area of relative strength as short-term interest rates generally increased more than long-term rates throughout the period.

Top individual contributors for the reporting period included overweight positions in hotel operator Ryman Hospitality Properties (consumer cyclicals), aircraft leasing company Park Aerospace Holdings (finance), midstream energy asset manager Tallgrass Energy Partners (energy) and diamond producer Northwest Acquisitions (basic industry).

Respectfully,

Portfolio Manager(s)

David Cole and Michael Skatrud

MFS High Yield Portfolio

Management Review – continued

(r)

(y)	A yield curve graphically depicts the yields of different maturity bonds of the same credit quality and type; a normal yield curve is upward sloping, with short-term rates lower than long-term rates.

Note to Shareholders: Effective March 1, 2018, Michael Skatrud became a Portfolio Manager of the Fund. Effective September 1, 2018, William Adams is no longer a Portfolio Manager of the Fund.

MFS High Yield Portfolio

PERFORMANCE SUMMARY THROUGH 12/31/18

Growth of a Hypothetical $10,000 Investment

LOGO

Total Returns through 12/31/18

Average annual total returns


	Share Class	Class Inception Date	1-yr	5-yr	10-yr
	Initial Class	6/12/85	(3.08)%	2.99%	9.85%
	Service Class	8/24/01	(3.24)%	2.76%	9.58%

Comparative benchmark(s)
	Bloomberg Barclays U.S. High-Yield Corporate Bond 2% Issuer Capped Index (f)		(2.08)%	3.84%	11.14%

(f)	Source: FactSet Research Systems Inc.

Benchmark Definition(s)

Bloomberg Barclays U.S. High-Yield Corporate Bond 2% Issuer Capped Index – a component of the Bloomberg Barclays U.S.High-Yield Corporate Bond Index, which measures performance of non-investment grade, fixed rate debt. The index limits the maximum exposure to any one issuer to 2%.

It is not possible to invest directly in an index.

Notes to Performance Summary

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

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

MFS High Yield Portfolio

EXPENSE TABLE

Fund Expenses Borne by the Contract Holders during the Period,

July 1, 2018 through December 31, 2018

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period July 1, 2018 through December 31, 2018.

Actual Expenses

Hypothetical Example for Comparison Purposes


Share Class		Annualized Expense Ratio		Beginning Account Value 7/01/18		Ending Account Value 12/31/18		Expenses Paid During Period (p) 7/01/18-12/31/18
Initial Class	Actual		0.72%		$1,000.00		$981.12		$3.60
Initial Class	Hypothetical (h)		0.72%		$1,000.00		$1,021.58		$3.67
Service Class	Actual		0.97%		$1,000.00		$979.63		$4.84
Service Class	Hypothetical (h)		0.97%		$1,000.00		$1,020.32		$4.94

(h)	5% class return per year before expenses.

(p)	“Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect theone-half year period).

MFS High Yield Portfolio

PORTFOLIO OF INVESTMENTS – 12/31/18

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



Issuer	Shares/Par		Value ($)
BONDS – 95.2%
Aerospace – 1.6%
Bombardier, Inc., 7.5%, 3/15/2025 (n)	$	460,000	$	433,550
DAE Funding LLC, 5.75%, 11/15/2023 (n)		1,200,000		1,188,000
DAE Funding LLC, 5%, 8/01/2024 (n)		2,415,000		2,336,512
TransDigm, Inc., 6.5%, 7/15/2024		1,155,000		1,123,238
TransDigm, Inc., 6.375%, 6/15/2026		700,000		651,000

			$	5,732,300

Asset - Backed & Securitized – 0.0%
CWCapital Cobalt Ltd., CDO, “F”, FLR, 3.808% (0% cash or 3.634% PIK), (LIBOR – 3mo. + 1.3%), 4/26/2050 (a)(p)(z)	$	1,190,169	$	119

Automotive – 1.3%
Allison Transmission, Inc., 5%, 10/01/2024 (n)	$	3,009,000	$	2,888,640
IHO Verwaltungs GmbH, 4.75%, (4.75% cash or 5.5% PIK) 9/15/2026 (n)(p)		1,945,000		1,693,259
Jaguar Land Rover Automotive PLC, 4.5%, 10/01/2027 (n)		445,000		331,525

			$	4,913,424

Broadcasting – 2.9%
Liberty Media Corp. - Liberty Formula One, 8.5%, 7/15/2029	$	1,535,000	$	1,542,675
Liberty Media Corp. - Liberty Formula One, 8.25%, 2/01/2030		530,000		516,750
Match Group, Inc., 6.375%, 6/01/2024		1,750,000		1,780,625
Netflix, Inc., 5.875%, 2/15/2025		1,475,000		1,487,906
Netflix, Inc., 4.875%, 4/15/2028		450,000		410,625
Netflix, Inc., 5.875%, 11/15/2028 (n)		1,975,000		1,924,499
Netflix, Inc., 4.625%, 5/15/2029 (n)	EUR	715,000		802,925
WMG Acquisition Corp., 5%, 8/01/2023 (n)	$	525,000		510,563
WMG Acquisition Corp., 4.875%, 11/01/2024 (n)		1,595,000		1,511,263
WMG Acquisition Corp., 5.5%, 4/15/2026 (n)		300,000		286,500

			$	10,774,331

Building – 4.1%
ABC Supply Co., Inc., 5.75%, 12/15/2023 (n)	$	2,080,000	$	2,059,200
ABC Supply Co., Inc., 5.875%, 5/15/2026 (n)		1,305,000		1,242,608
Beacon Escrow Corp., 4.875%, 11/01/2025 (n)		1,760,000		1,546,600
James Hardie International Finance Ltd., 4.75%, 1/15/2025 (n)		310,000		282,100
James Hardie International Finance Ltd., 5%, 1/15/2028 (n)		1,420,000		1,214,100
NCI Building Systems, Inc., 8%, 4/15/2026 (z)		345,000		315,675



Issuer	Shares/Par		Value ($)
BONDS – continued
Building – continued
New Enterprise Stone & Lime Co., Inc., 10.125%, 4/01/2022 (n)	$	1,710,000	$	1,667,250
New Enterprise Stone & Lime Co., Inc., 6.25%, 3/15/2026 (n)		997,000		907,270
PriSo Acquisition Corp., 9%, 5/15/2023 (n)		714,000		722,925
Standard Industries, Inc., 5.375%, 11/15/2024 (n)		1,730,000		1,624,037
Standard Industries, Inc., 6%, 10/15/2025 (n)		1,265,000		1,213,262
Summit Materials LLC/Summit Materials Finance Co., 6.125%, 7/15/2023		1,850,000		1,831,500
Summit Materials LLC/Summit
Materials Finance Co., 5.125%, 6/01/2025 (n)		450,000		409,500

			$	15,036,027

Business Services – 4.6%
Alliance Data Systems Corp., 5.875%, 11/01/2021 (n)	$	540,000	$	539,244
Ascend Learning LLC, 6.875%, 8/01/2025 (n)		1,270,000		1,216,025
CDK Global, Inc., 4.875%, 6/01/2027		2,155,000		1,998,762
Equinix, Inc., 5.375%, 4/01/2023		1,145,000		1,139,275
Equinix, Inc., 5.75%, 1/01/2025		1,000,000		1,007,500
Equinix, Inc., 5.875%, 1/15/2026		1,045,000		1,052,838
Financial & Risk U.S. Holdings, Inc., 8.25%, 11/15/2026 (n)		1,635,000		1,493,981
First Data Corp., 5%, 1/15/2024 (n)		3,085,000		2,969,312
MSCI, Inc., 4.75%, 8/01/2026 (n)		1,615,000		1,530,213
Travelport Worldwide Ltd., 6%, 3/15/2026 (n)		960,000		969,600
Vantiv LLC/Vantiv Issuer Corp., 4.375%, 11/15/2025 (n)		1,975,000		1,806,908
Verscend Escrow Corp., 9.75%, 8/15/2026 (n)		1,005,000		944,700

			$	16,668,358

Cable TV – 8.2%
Altice Financing S.A., 6.625%, 2/15/2023 (n)	$	665,000	$	638,400
Altice Financing S.A., 7.5%, 5/15/2026 (n)		200,000		182,500
CCO Holdings LLC/CCO Holdings Capital Corp., 5.75%, 1/15/2024		2,750,000		2,736,250
CCO Holdings LLC/CCO Holdings Capital Corp., 5.375%, 5/01/2025 (n)		815,000		781,381
CCO Holdings LLC/CCO Holdings Capital Corp., 5.75%, 2/15/2026 (n)		3,110,000		3,047,800
CCO Holdings LLC/CCO Holdings Capital Corp., 5.875%, 5/01/2027 (n)		1,595,000		1,547,150
CSC Holdings LLC, 5.5%, 5/15/2026 (z)		1,340,000		1,262,950
CSC Holdings LLC, 5.5%, 4/15/2027 (n)		2,960,000		2,752,800
CSC Holdings LLC, 7.5%, 4/01/2028 (z)		875,000		872,813

MFS High Yield Portfolio

Portfolio of Investments – continued



Issuer	Shares/Par		Value ($)
BONDS – continued
Cable TV – continued
DISH DBS Corp., 5.875%, 11/15/2024	$	750,000	$	603,750
Intelsat Connect Finance, 9.5%, 2/15/2023 (n)		530,000		455,800
Intelsat Jackson Holdings S.A., 5.5%, 8/01/2023		1,605,000		1,396,350
Sirius XM Radio, Inc., 4.625%, 5/15/2023 (n)		770,000		737,275
Sirius XM Radio, Inc., 6%, 7/15/2024 (n)		1,605,000		1,609,012
Sirius XM Radio, Inc., 5.375%, 4/15/2025 (n)		745,000		705,888
Telenet Finance Luxembourg S.A., 5.5%, 3/01/2028 (n)		2,600,000		2,353,000
Unitymedia KabelBW GmbH, 6.125%, 1/15/2025 (n)		1,865,000		1,874,138
Videotron Ltd., 5.375%, 6/15/2024 (n)		455,000		450,450
Videotron Ltd., 5.125%, 4/15/2027 (n)		2,660,000		2,513,700
Virgin Media Finance PLC, 5.75%, 1/15/2025 (n)		200,000		188,006
Virgin Media Secured Finance PLC, 5.25%, 1/15/2026 (n)		1,655,000		1,516,394
Ziggo Bond Finance B.V., 5.875%, 1/15/2025 (n)		2,080,000		1,877,200

			$	30,103,007

Chemicals – 2.8%
Axalta Coating Systems Co., 4.875%, 8/15/2024 (n)	$	2,225,000	$	2,102,625
Consolidated Energy Finance S.A., 6.875%, 6/15/2025 (n)		1,235,000		1,175,979
OCI N.V., 6.625%, 4/15/2023 (n)		2,065,000		2,028,863
PolyOne Corp., 5.25%, 3/15/2023		1,565,000		1,510,225
SPCM S.A., 4.875%, 9/15/2025 (n)		2,445,000		2,127,150
Starfruit Finance Co./Starfruit U.S. Holding Co. LLC, 6.5%, 10/01/2026 (n)	EUR	925,000		977,947
Starfruit Finco B.V./Starfruit US Holdco LLC, 6.5%, 10/01/2026		325,000		343,603

			$	10,266,392

Computer Software – 0.7%
Diamond 1 Finance Corp./Diamond 2 Finance Corp., 5.875%, 6/15/2021 (n)	$	1,485,000	$	1,483,343
Diamond 1 Finance Corp./Diamond 2 Finance Corp., 6.02%, 6/15/2026 (n)		935,000		939,653

			$	2,422,996

Computer Software – Systems – 1.7%
CDW LLC/CDW Finance Corp., 5.5%, 12/01/2024	$	370,000	$	365,375
CDW LLC/CDW Finance Corp., 5%, 9/01/2025		510,000		488,325
Fair Isaac Corp., 5.25%, 5/15/2026 (n)		1,730,000		1,673,775
JDA Software Group, Inc., 7.375%, 10/15/2024 (n)		1,205,000		1,214,037
Sabre GLBL, Inc., 5.375%, 4/15/2023 (n)		2,410,000		2,397,950

			$	6,139,462



Issuer	Shares/Par		Value ($)
BONDS – continued
Conglomerates – 3.8%
Amsted Industries Co., 5%, 3/15/2022 (n)	$	2,500,000	$	2,431,250
BWX Technologies, Inc., 5.375%, 7/15/2026 (n)		1,760,000		1,693,472
EnerSys, 5%, 4/30/2023 (n)		3,100,000		3,022,500
Entegris, Inc., 4.625%, 2/10/2026 (n)		2,505,000		2,304,600
Gates Global LLC, 6%, 7/15/2022 (n)		872,000		854,560
Stevens Holding Co., Inc., 6.125%, 10/01/2026 (n)		1,625,000		1,600,625
TriMas Corp., 4.875%, 10/15/2025 (n)		2,095,000		1,932,637

			$	13,839,644

Construction – 1.1%
Empresas ICA S.A.B. de C.V., 8.9%, 2/04/2021 (a)(d)	$	930,000	$	152,287
Empresas ICA S.A.B. de C.V., 8.875%, 5/29/2024 (a)(d)(n)		807,000		138,199
Mattamy Group Corp., 6.5%, 10/01/2025 (n)		1,940,000		1,736,300
Toll Brothers Finance Corp., 4.875%, 11/15/2025		590,000		551,650
Toll Brothers Finance Corp., 4.35%, 2/15/2028		1,720,000		1,470,600

			$	4,049,036

Consumer Products – 1.1%
Coty, Inc., 6.5%, 4/15/2026 (n)	$	895,000	$	769,700
Energizer Gamma Acquisition, Inc., 6.375%, 7/15/2026 (n)		1,610,000		1,477,175
Spectrum Brands, Inc., 5.75%, 7/15/2025		1,880,000		1,785,436

			$	4,032,311

Consumer Services – 1.8%
Cimpress N.V., 7%, 6/15/2026 (n)	$	1,380,000	$	1,324,800
Frontdoor, Inc., 6.75%, 8/15/2026 (n)		1,405,000		1,334,750
Matthews International Corp., 5.25%, 12/01/2025 (n)		1,430,000		1,329,900
NVA Holdings, Inc., 6.875%, 4/01/2026 (n)		1,190,000		1,065,050
ServiceMaster Co. LLC, 5.125%, 11/15/2024 (n)		1,810,000		1,710,450

			$	6,764,950

Containers – 5.2%
ARD Finance S.A., 6.625%, 9/15/2023	EUR	510,000	$	557,570
ARD Finance S.A., 7.125%, 9/15/2023	$	1,075,000		964,813
ARD Securities Finance, 8.75%, (8.75% cash or 8.75% PIK) 1/31/2023 (n)(p)		870,000		702,797
Berry Global Group, Inc., 5.5%, 5/15/2022		2,200,000		2,189,000
Berry Global Group, Inc., 6%, 10/15/2022		500,000		505,000
BWAY Holding Co., Inc., 7.25%, 4/15/2025 (z)		345,000		309,638
Crown American LLC, 4.5%, 1/15/2023		1,442,000		1,407,752
Crown Americas LLC/Crown Americas Capital Corp., 4.75%, 2/01/2026 (n)		775,000		735,281
Crown Americas LLC/Crown Americas Capital Corp. V, 4.25%, 9/30/2026		1,080,000		969,300

MFS High Yield Portfolio

Portfolio of Investments – continued



Issuer	Shares/Par		Value ($)
BONDS – continued
Containers – continued
Flex Acquisition Co., Inc., 6.875%, 1/15/2025 (n)	$	1,475,000	$	1,312,750
Multi-Color Corp., 6.125%, 12/01/2022 (n)		2,124,000		2,108,070
Reynolds Group, 5.75%, 10/15/2020		741,367		739,514
Reynolds Group, 5.125%, 7/15/2023 (n)		1,260,000		1,200,150
Sealed Air Corp., 4.875%, 12/01/2022 (n)		1,875,000		1,856,250
Sealed Air Corp., 5.125%, 12/01/2024 (n)		365,000		358,156
Sealed Air Corp., 5.5%, 9/15/2025 (n)		420,000		414,750
Silgan Holdings, Inc., 4.75%, 3/15/2025		1,385,000		1,291,512
W/S Packaging Group, Inc., 9%, 4/15/2023 (n)		1,230,000		1,223,850

			$	18,846,153

Electrical Equipment – 0.7%
CommScope Technologies LLC, 5%, 3/15/2027 (n)	$	3,170,000	$	2,567,700

Electronics – 1.2%
Qorvo, Inc., 5.5%, 7/15/2026 (n)	$	1,535,000	$	1,465,925
Sensata Technologies B.V., 5.625%, 11/01/2024 (n)		835,000		822,475
Sensata Technologies B.V., 5%, 10/01/2025 (n)		2,080,000		1,955,200

			$	4,243,600

Energy – Independent – 5.3%
Alta Mesa Holdings LP/Alta Mesa
Finance Services Corp., 7.875%, 12/15/2024	$	2,565,000	$	1,590,300
Callon Petroleum Co., 6.375%, 7/01/2026		1,745,000		1,622,850
Carrizo Oil & Gas, Inc., 6.25%, 4/15/2023		790,000		730,750
CrownRock LP/CrownRock Finance, Inc., 5.625%, 10/15/2025 (n)		2,165,000		1,948,500
Diamondback Energy, Inc., 5.375%, 5/31/2025		2,735,000		2,666,625
Gulfport Energy Corp., 6%, 10/15/2024		1,295,000		1,146,075
Indigo Natural Resources LLC, 6.875%, 2/15/2026 (n)		1,130,000		971,800
Magnolia Oil & Gas Operating LLC/Magnolia Oil & Gas Finance Corp., 6%, 8/01/2026 (n)		1,690,000		1,630,850
Oasis Petroleum, Inc., 6.25%, 5/01/2026 (n)		1,385,000		1,163,400
Parsley Energy LLC/Parsley Finance Corp., 5.25%, 8/15/2025 (n)		430,000		389,150
Parsley Energy LLC/Parsley Finance Corp., 5.625%, 10/15/2027 (n)		2,560,000		2,326,400
QEP Resources, Inc., 5.25%, 5/01/2023		1,055,000		933,675
Sanchez Energy Corp., 6.125%, 1/15/2023		1,180,000		212,400
SM Energy Co., 6.75%, 9/15/2026		2,390,000		2,139,050

			$	19,471,825

Entertainment – 1.3%
Live Nation Entertainment, Inc., 5.625%, 3/15/2026 (n)	$	1,795,000	$	1,754,612
Six Flags Entertainment Corp., 4.875%, 7/31/2024 (n)		3,320,000		3,129,100

			$	4,883,712



Issuer	Shares/Par		Value ($)
BONDS – continued
Financial Institutions – 1.2%
Avolon Holdings Funding Ltd., 5.125%, 10/01/2023	$	1,085,000	$	1,036,175
Park Aerospace Holdings Ltd., 5.5%, 2/15/2024 (n)		2,710,000		2,615,150
Wand Merger Corp., 8.125%, 7/15/2023 (n)		830,000		809,250

			$	4,460,575

Food & Beverages – 3.4%
Aramark Services, Inc., 4.75%, 6/01/2026	$	1,620,000	$	1,522,800
Aramark Services, Inc., 5%, 2/01/2028 (n)		1,135,000		1,058,388
Cott Holdings, Inc., 5.5%, 4/01/2025 (n)		2,090,000		1,969,825
JBS USA LLC/JBS USA Finance, Inc., 6.75%, 2/15/2028 (n)		530,000		516,750
JBS USA Lux S.A./JBS USA Finance, Inc., 5.875%, 7/15/2024 (n)		1,835,000		1,798,300
Lamb Weston Holdings, Inc., 4.625%, 11/01/2024 (n)		1,175,000		1,142,687
Lamb Weston Holdings, Inc., 4.875%, 11/01/2026 (n)		750,000		720,000
Pilgrim’s Pride Corp., 5.875%, 9/30/2027 (n)		1,990,000		1,805,925
U.S. Foods Holding Corp., 5.875%, 6/15/2024 (n)		2,015,000		1,959,587

			$	12,494,262

Gaming & Lodging – 4.4%
CCM Merger, Inc., 6%, 3/15/2022 (n)	$	1,420,000	$	1,440,945
GLP Capital LP/GLP Financing II, Inc., 5.375%, 11/01/2023		925,000		937,673
GLP Capital LP/GLP Financing II, Inc., 5.25%, 6/01/2025		1,245,000		1,236,185
GLP Capital LP/GLP Financing II, Inc., 5.375%, 4/15/2026		260,000		257,143
Hilton Domestic Operating Co., Inc., 5.125%, 5/01/2026 (n)		1,555,000		1,492,800
Hilton Worldwide Finance LLC, 4.625%, 4/01/2025		1,995,000		1,890,262
Marriot Ownership Resorts, Inc., 5.625%, 4/15/2023 (z)		1,225,000		1,212,750
MGM Resorts International, 6.625%, 12/15/2021		765,000		784,125
MGM Resorts International, 6%, 3/15/2023		800,000		804,000
MGM Resorts International, 5.75%, 6/15/2025		1,695,000		1,635,675
Ryman Hospitality Properties, Inc., REIT, 5%, 4/15/2021		1,940,000		1,925,450
Ryman Hospitality Properties, Inc., REIT, 5%, 4/15/2023		920,000		897,000
Wyndham Hotels Group, LLC, 5.375%, 4/15/2026 (n)		1,660,000		1,593,600

			$	16,107,608

Industrial – 0.9%
Cleaver Brooks, Inc., 7.875%, 3/01/2023 (n)	$	1,405,000	$	1,355,825

MFS High Yield Portfolio

Portfolio of Investments – continued



Issuer	Shares/Par		Value ($)
BONDS – continued
Industrial – continued
KAR Auction Services, Inc., 5.125%, 6/01/2025 (n)	$	2,215,000	$	1,999,038

			$	3,354,863

Insurance – Health – 0.8%
Centene Corp., 6.125%, 2/15/2024	$	950,000	$	972,563
Centene Corp., 5.375%, 6/01/2026 (n)		2,130,000		2,071,425

			$	3,043,988

Insurance – Property & Casualty – 0.7%
AssuredPartners Inc., 7%, 8/15/2025 (n)	$	1,580,000	$	1,424,022
Hub International Ltd., 7%, 5/01/2026 (n)		1,385,000		1,256,888

			$	2,680,910

Machinery & Tools – 0.5%
Ashtead Capital, Inc., 5.625%, 10/01/2024 (n)	$	1,730,000	$	1,747,300

Major Banks – 0.6%
UBS Group AG, 6.875% to 8/07/2025, FLR (Swap Rate – 5yr. + 4.59%) to 12/29/2049	$	2,245,000	$	2,155,200

Medical & Health Technology & Services – 5.2%
Avantor, Inc., 9%, 10/01/2025 (n)	$	1,250,000	$	1,250,000
DaVita, Inc., 5%, 5/01/2025		1,045,000		948,338
Encompass Health Corp., 5.75%, 9/15/2025		695,000		677,625
HCA, Inc., 7.5%, 2/15/2022		2,030,000		2,156,875
HCA, Inc., 5%, 3/15/2024		1,430,000		1,415,700
HCA, Inc., 5.375%, 2/01/2025		2,060,000		2,008,500
HCA, Inc., 5.875%, 2/15/2026		1,205,000		1,198,975
HealthSouth Corp., 5.125%, 3/15/2023		1,575,000		1,543,500
HealthSouth Corp., 5.75%, 11/01/2024		500,000		495,000
Heartland Dental, LLC, 8.5%, 5/01/2026 (n)		1,310,000		1,179,000
Polaris, 8.5%, (8.5% cash or 8.5% PIK) 12/01/2022 (n)(p)		930,000		848,272
Quintiles IMS Holdings, Inc., 5%, 10/15/2026 (n)		1,415,000		1,351,325
Regional Care/LifePoint Health, Inc., 9.75%, 12/01/2026 (n)		1,445,000		1,369,137
Tenet Healthcare Corp., 6.75%, 6/15/2023		1,430,000		1,342,412
West Street Merger Sub, Inc., 6.375%, 9/01/2025 (n)		1,405,000		1,243,425

			$	19,028,084

Medical Equipment – 0.8%
Teleflex, Inc., 5.25%, 6/15/2024	$	1,360,000	$	1,353,200
Teleflex, Inc., 4.875%, 6/01/2026		785,000		749,675
Teleflex, Inc., 4.625%, 11/15/2027		910,000		844,025

			$	2,946,900

Metals & Mining – 4.1%
Baffinland Iron Mines
Corp./Baffinland Iron Mines LP, 8.75%, 7/15/2026 (n)	$	1,330,000	$	1,195,098



Issuer	Shares/Par		Value ($)
BONDS – continued
Metals & Mining – continued
First Quantum Minerals Ltd., 7.25%, 4/01/2023 (n)	$	720,000	$	633,600
Freeport-McMoRan Copper & Gold, Inc., 5.4%, 11/14/2034		1,905,000		1,500,188
Freeport-McMoRan, Inc., 6.875%, 2/15/2023		2,954,000		3,046,312
Kaiser Aluminum Corp., 5.875%, 5/15/2024		1,820,000		1,779,050
Northwest Acquisitions ULC/Dominion Finco, Inc., 7.125%, 11/01/2022 (n)		2,040,000		2,016,601
Novelis Corp., 5.875%, 9/30/2026 (n)		2,545,000		2,252,325
Petra Diamonds U.S. Treasury PLC, 7.25%, 5/01/2022 (n)		1,520,000		1,406,000
TMS International Corp., 7.25%, 8/15/2025 (n)		1,250,000		1,168,750

			$	14,997,924

Midstream – 5.7%
Blue Racer Midstream LLC/Blue Racer Finance Corp., 6.125%, 11/15/2022 (n)	$	1,040,000	$	1,003,600
Blue Racer Midstream LLC/Blue
Racer Finance Corp., 6.625%, 7/15/2026 (n)		1,590,000		1,478,700
Cheniere Energy, Inc., 5.875%, 3/31/2025		1,835,000		1,825,825
DCP Midstream Operating LP, 4.95%, 4/01/2022		772,000		764,280
DCP Midstream Operating LP, 3.875%, 3/15/2023		1,480,000		1,387,500
DCP Midstream Operating LP, 5.375%, 7/15/2025 (n)		1,045,000		1,021,487
DCP Midstream Operating LP, 5.6%, 4/01/2044		815,000		704,975
Energy Transfer Equity LP, 5.875%, 1/15/2024		1,935,000		1,975,403
EnLink Midstream Partners LP, 4.4%, 4/01/2024		1,800,000		1,696,173
Tallgrass Energy Partners LP, 5.5%, 1/15/2028 (n)		3,530,000		3,388,800
Targa Resources Partners LP/Targa Resources Finance Corp., 5.25%, 5/01/2023		1,445,000		1,416,100
Targa Resources Partners LP/Targa Resources Finance Corp., 5.125%, 2/01/2025 (n)		745,000		698,438
Targa Resources Partners LP/Targa Resources Finance Corp., 5.375%, 2/01/2027		3,515,000		3,295,312

			$	20,656,593

Network & Telecom – 0.8%
Zayo Group LLC/Zayo Capital, Inc., 6.375%, 5/15/2025	$	1,060,000	$	985,800
Zayo Group LLC/Zayo Capital, Inc., 5.75%, 1/15/2027 (n)		2,035,000		1,816,238

			$	2,802,038

MFS High Yield Portfolio

Portfolio of Investments – continued



Issuer	Shares/Par		Value ($)
BONDS – continued
Oil Services – 0.9%
Apergy Corp., 6.375%, 5/01/2026	$	1,735,000	$	1,682,950
Diamond Offshore Drill Co., 7.875%, 8/15/2025		745,000		618,350
Diamond Offshore Drill Co., 5.7%, 10/15/2039		1,740,000		1,061,400

			$	3,362,700

Oils – 0.6%
Parkland Fuel Corp., 6%, 4/01/2026 (n)	$	2,525,000	$	2,367,188

Pharmaceuticals – 1.2%
Endo Finance LLC/Endo Finco, Inc., 5.375%, 1/15/2023 (n)	$	570,000	$	433,200
Mallinckrodt International Finance S.A., 5.75%, 8/01/2022 (n)		805,000		692,300
Valeant Pharmaceuticals International, Inc., 5.5%, 3/01/2023 (n)		1,605,000		1,463,262
Valeant Pharmaceuticals International, Inc., 6.125%, 4/15/2025 (n)		1,880,000		1,640,300

			$	4,229,062

Precious Metals & Minerals – 0.4%
Teck Resources Ltd., 6%, 8/15/2040	$	225,000	$	209,250
Teck Resources Ltd., 6.25%, 7/15/2041		1,405,000		1,331,238

			$	1,540,488

Printing & Publishing – 0.5%
Nielsen Co. Lux S.A.R.L., 5%, 2/01/2025 (n)	$	220,000	$	205,700
Nielsen Finance LLC, 5%, 4/15/2022 (n)		1,600,000		1,528,000

			$	1,733,700

Real Estate – Healthcare – 1.0%
MPT Operating Partnership LP/MPT Financial Co., REIT, 5.25%, 8/01/2026	$	1,765,000	$	1,663,512
MPT Operating Partnership LP/MPT Financial Co., REIT, 5%, 10/15/2027		2,215,000		2,025,341

			$	3,688,853

Real Estate – Other – 0.9%
CyrusOne LP/CyrusOne Finance Corp., REIT, 5%, 3/15/2024	$	2,285,000	$	2,239,300
CyrusOne LP/CyrusOne Finance Corp., REIT, 5.375%, 3/15/2027		1,000,000		970,000

			$	3,209,300

Restaurants – 0.7%
Golden Nugget, Inc., 6.75%, 10/15/2024 (n)	$	775,000	$	730,438
KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America LLC, 5.25%, 6/01/2026 (n)		1,895,000		1,833,469

			$	2,563,907

Retailers – 0.8%
DriveTime Automotive Group, Inc./DT Acceptance Corp., 8%, 6/01/2021 (n)	$	915,000	$	915,128
Hanesbrands, Inc., 4.625%, 5/15/2024 (n)		440,000		412,500



Issuer	Shares/Par		Value ($)
BONDS – continued
Retailers – continued
Hanesbrands, Inc., 4.875%, 5/15/2026 (n)	$	1,720,000	$	1,550,150

			$	2,877,778

Specialty Chemicals – 0.7%
Univar USA, Inc., 6.75%, 7/15/2023 (n)	$	2,420,000	$	2,395,800

Specialty Stores – 0.3%
Penske Automotive Group Co., 5.375%, 12/01/2024	$	300,000	$	280,875
Penske Automotive Group Co., 5.5%, 5/15/2026		935,000		869,550

			$	1,150,425

Supermarkets – 0.4%
Albertsons Cos. LLC/Safeway Co., 6.625%, 6/15/2024	$	1,570,000	$	1,456,175

Telecommunications – Wireless – 4.9%
Altice France S.A., 6.25%, 5/15/2024 (n)	$	500,000	$	466,250
Altice France S.A., 8.125%, 2/01/2027 (n)		1,285,000		1,211,113
Altice Luxembourg S.A., 7.75%, 5/15/2022 (n)		750,000		682,500
Altice Luxembourg S.A., 7.625%, 2/15/2025 (n)		1,450,000		1,083,875
Digicel Group Ltd., 6.75%, 3/01/2023 (n)		1,991,000		1,575,379
SBA Communications Corp., 4%, 10/01/2022		2,125,000		2,024,063
SBA Communications Corp., 4.875%, 9/01/2024		800,000		752,000
SFR Group S.A., 7.375%, 5/01/2026 (n)		440,000		403,700
Sprint Corp., 7.875%, 9/15/2023		925,000		949,281
Sprint Corp., 7.125%, 6/15/2024		2,675,000		2,651,085
Sprint Nextel Corp., 6%, 11/15/2022		2,080,000		2,041,166
T-Mobile USA, Inc., 6.5%, 1/15/2024		630,000		647,438
T-Mobile USA, Inc., 5.125%, 4/15/2025		1,190,000		1,155,788
T-Mobile USA, Inc., 6.5%, 1/15/2026		1,380,000		1,407,600
T-Mobile USA, Inc., 5.375%, 4/15/2027		910,000		878,150

			$	17,929,388

Telephone Services – 0.7%
Level 3 Financing, Inc., 5.375%, 1/15/2024	$	715,000	$	681,038
Level 3 Financing, Inc., 5.375%, 5/01/2025		1,840,000		1,725,000

			$	2,406,038

Transportation – Services – 0.3%
Navios South American Logistics, Inc./Navios Logistics Finance (U.S.), Inc., 7.25%, 5/01/2022	$	535,000	$	484,175
Syncreon Group BV/Syncre, 8.625%, 11/01/2021 (n)		748,000		635,800

			$	1,119,975

Utilities – Electric Power – 2.4%
Clearway Energy Operating LLC, 5.75%, 10/15/2025 (n)	$	1,960,000	$	1,871,800

MFS High Yield Portfolio

Portfolio of Investments – continued



Issuer	Shares/Par		Value ($)
BONDS – continued
Utilities – Electric Power – continued
Covanta Holding Corp., 5.875%, 3/01/2024	$	1,305,000	$	1,226,700
Covanta Holding Corp., 5.875%, 7/01/2025		995,000		915,400
Covanta Holding Corp., 6%, 1/01/2027		1,480,000		1,324,600
Drax Finco PLC, 6.625%, 11/01/2025 (n)		1,480,000		1,454,100
NextEra Energy Operating Co., 4.25%, 9/15/2024 (n)		1,960,000		1,813,000

			$	8,605,600

Total Bonds (Identified Cost, $375,208,424)			$	347,867,969


FLOATING RATE LOANS (r) – 0.9%
Broadcasting – 0.1%
Warner Music Group, Term Loan F, 4.896%, 11/01/2023	$	319,000	$	306,340

Conglomerates – 0.1%
Gates Global LLC, Term Loan B2, 5.427%, 4/01/2024	$	379,041	$	359,378

Consumer Products – 0.1%
Spectrum Brands, Inc., Term Loan B, 4.322%, 6/23/2022	$	470,330	$	457,102

Entertainment – 0.1%
Live Nation Entertainment, Inc., Term Loan B3, 4.148%, 10/31/2023	$	490,751	$	479,096

Food & Beverages – 0.1%
U.S. Foods, Inc., Term Loan B, 4.788%, 6/27/2023	$	318,184	$	300,949

Medical & Health Technology & Services – 0.3%
DaVita, Inc., Term Loan B, 5.042%, 6/24/2021	$	965,938	$	953,260

Oil Services – 0.1%
Apergy Corp., Term Loan B, 5.118%, 5/09/2025	$	460,861	$	433,209

Total Floating Rate Loans (Identified Cost, $3,355,770)			$	3,289,334



Issuer	Shares/Par		Value ($)
COMMON STOCKS – 0.3%
Oil Services – 0.3%
LTRI Holdings LP (a)(u) (Identified Cost, $401,400)		1,115	$	991,703


CONVERTIBLE BONDS – 0.1%
Cable TV – 0.1%
DISH Network Corp., 3.375%, 8/15/2026 (Identified Cost, $513,453)	$	570,000	$	460,284



	Strike Price		First Exercise
WARRANTS – 0.0%
Forest & Paper Products – 0.0%
Appvion Holdings Corp. - Tranche A (1 share for 1 warrant)		$27.17		8/24/18	670	$	6,030
Appvion Holdings Corp. - Tranche B (1 share for 1 warrant)		31.25		8/24/18	670		5,025

Total Warrants (Identified Cost, $0)						$	11,055


INVESTMENT COMPANIES (h) – 2.6%
Money Market Funds – 2.6%
MFS Institutional Money Market Portfolio, 2.4% (v) (Identified Cost, $9,626,610)				9,626,612		$	9,625,650

OTHER ASSETS, LESS LIABILITIES – 0.9%							3,129,816

NET ASSETS – 100.0%						$	365,375,811

(a)

Non-income producing security.

(d)

In default.

(h)

(n)

(p)

Payment-in-kind (PIK) security for which interest income may be received in additional securities and/or cash.

(r)

The remaining maturities of floating rate loans may be less than the stated maturities shown as a result of contractual or optional prepayments by the borrower. Such prepayments cannot be predicted with certainty. These loans may be subject to restrictions on resale. The interest rate shown represents the weighted average of the floating interest rates on settled contracts within the loan facility at period end, unless otherwise indicated. The floating interest rates on settled contracts are determined periodically by reference to a base lending rate and a spread.

(u)

(v)

MFS High Yield Portfolio

Portfolio of Investments – continued

(z)


Restricted Securities	Acquisition Date	Cost		Value

BWAY Holding Co., Inc., 7.25%, 4/15/2025	12/07/18		$316,965		$309,638

CSC Holdings LLC, 5.5%, 5/15/2026	1/13/17-6/12/17		1,392,233		1,262,950

CSC Holdings LLC, 7.5%, 4/01/2028	6/07/18-6/11/18		891,275		872,813

CWCapital Cobalt Ltd., CDO, “F”, FLR, 3.808% (0% cash or 3.634% PIK), (LIBOR - 3 mo. + 1.3%), 4/26/2050	4/12/06		1,083,402		119

Marriot Ownership Resorts, Inc., 5.625%, 4/15/2023	8/30/18		1,225,963		1,212,750

NCI Building Systems, Inc., 8%, 4/15/2026	12/10/18		328,702		315,675

Total Restricted Securities					$3,973,945

% of Net assets					1.1%

The following abbreviations are used in this report and are defined:

CDO

Collateralized Debt Obligation

FLR

LIBOR

London Interbank Offered Rate

PLC

Public Limited Company

REIT

Real Estate Investment Trust

Abbreviations indicate amounts shown in currencies other than the U.S. dollar. All amounts are stated in U.S. dollars unless otherwise indicated. A list of abbreviations is shown below:

EUR

Euro

Derivative Contracts at 12/31/18

Forward Foreign Currency Exchange Contracts


Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
Asset Derivatives
USD	478,614	EUR	416,999	Citibank N.A.		1/11/2019		$523
USD	1,778,845	EUR	1,530,580	Goldman Sachs International		1/11/2019		24,026
USD	171,099	EUR	147,282	Goldman Sachs International		1/14/2019		2,198

								$26,747

Liability Derivatives
USD	360,134	EUR	316,591	Barclays Bank PLC		1/11/2019		$(2,839	)
USD	116,872	EUR	101,938	Brown Brothers Harriman		1/11/2019		(1	)

								$(2,840	)

Futures Contracts

Description

Long/
Short

Currency

Contracts

Notional
Amount

Expiration
Date

Value/

Unrealized
Appreciation
(Depreciation)

Liability Derivatives

Interest Rate Futures

German Euro-Bobl 5 yr

Short

EUR

$911,008

March - 2019

$(2,145

)

U.S. Treasury Note 10 yr

Short

USD

6,222,797

March - 2019

(153,982

)

$(156,127

)

At December 31, 2018, the fund had cash collateral of $61,509 to cover any collateral or margin obligations for certain derivative contracts. Restricted cash and/or deposits with brokers in the Statement of Assets and Liabilities are comprised of cash collateral.

See Notes to Financial Statements

MFS High Yield Portfolio

FINANCIAL STATEMENTS ^| STATEMENT OF ASSETS AND LIABILITIES

This statement represents your fund’s balance sheet, which details the assets and liabilities comprising the total value of the fund.


At 12/31/18

Assets
Investments in unaffiliated issuers, at value (identified cost, $379,479,047)	$352,620,345
Investments in affiliated issuers, at value (identified cost, $9,626,610)	9,625,650
Cash	9,851
Deposits with brokers for
Futures contracts	61,509
Receivables for
Forward foreign currency exchange contracts	26,747
Fund shares sold	40,182
Interest	5,802,766
Other assets	2,612
Total assets	$368,189,662

Liabilities
Payables for
Forward foreign currency exchange contracts	$2,840
Net daily variation margin on open futures contracts	19,911
Investments purchased	1,920,942
Fund shares reacquired	742,991
Payable to affiliates
Investment adviser	13,888
Shareholder servicing costs	116
Distribution and/or service fees	1,232
Payable for independent Trustees’ compensation	14
Accrued expenses and other liabilities	111,917
Total liabilities	$2,813,851
Net assets	$365,375,811

Net assets consist of
Paid-in capital	$410,794,285
Total distributable earnings (loss)	(45,418,474	)
Net assets	$365,375,811
Shares of beneficial interest outstanding	69,295,772



	Net assets		Shares outstanding		Net asset value per share
Initial Class		$320,380,370		60,671,948		$5.28
Service Class		44,995,441		8,623,824		5.22

See Notes to Financial Statements

MFS High Yield Portfolio

FINANCIAL STATEMENTS ^| STATEMENT OF OPERATIONS

This statement describes how much your fund earned in investment income and accrued in expenses. It also describes any gains and/or losses generated by fund operations.


Year ended 12/31/18

Net investment income (loss)
Income
Interest	$22,928,209
Dividends from affiliated issuers	202,953
Other	59,781
Total investment income	$23,190,943
Expenses
Management fee	$2,882,354
Distribution and/or service fees	132,464
Shareholder servicing costs	14,107
Administrative services fee	68,550
Independent Trustees’ compensation	7,418
Custodian fee	26,481
Shareholder communications	45,960
Audit and tax fees	78,321
Legal fees	13,319
Miscellaneous	44,559
Total expenses	$3,313,533
Reduction of expenses by investment adviser	(214,311	)
Net expenses	$3,099,222
Net investment income (loss)	$20,091,721

Realized and unrealized gain (loss)
Realized gain (loss) (identified cost basis)
Unaffiliated issuers	$(4,275,313	)
Affiliated issuers	(784	)
Futures contracts	409,201
Forward foreign currency exchange contracts	77,350
Foreign currency	1,013
Net realized gain (loss)	$(3,788,533	)
Change in unrealized appreciation or depreciation
Unaffiliated issuers	$(28,025,278	)
Affiliated issuers	(55	)
Futures contracts	(223,361	)
Forward foreign currency exchange contracts	23,907
Translation of assets and liabilities in foreign currencies	250
Net unrealized gain (loss)	$(28,224,537	)
Net realized and unrealized gain (loss)	$(32,013,070	)
Change in net assets from operations	$(11,921,349	)

See Notes to Financial Statements

MFS High Yield Portfolio

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
	12/31/18			12/31/17
Change in net assets
From operations
Net investment income (loss)		$20,091,721			$21,876,775
Net realized gain (loss)		(3,788,533	)		812,597
Net unrealized gain (loss)		(28,224,537	)		6,671,003
Change in net assets from operations		$(11,921,349	)		$29,360,375
Total distributions to shareholders (a)		$(22,864,139	)		$(29,244,080	)
Change in net assets from fund share transactions		$(42,731,313	)		$(30,530,978	)
Total change in net assets		$(77,516,801	)		$(30,414,683	)
Net assets
At beginning of period		442,892,612			473,307,295
At end of period (b)		$365,375,811			$442,892,612

(a)	Distributions from net investment income and from net realized gain are no longer required to be separately disclosed. See Note 2. For the year ended December 31, 2017, distributions from net investment income were $29,244,080.

(b)	Parenthetical disclosure of undistributed net investment income is no longer required. See Note 2. For the year ended December 31, 2017, end of period net assets included undistributed net investment income of $22,430,017.

See Notes to Financial Statements

MFS High Yield Portfolio

FINANCIAL STATEMENTS ^| FINANCIAL HIGHLIGHTS


Initial Class	Year ended
	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Net asset value, beginning of period		$5.77			$5.78			$5.43			$6.11			$6.28
Income (loss) from investment operations
Net investment income (loss) (d)		$0.28			$0.28			$0.32	(c)		$0.33			$0.35
Net realized and unrealized gain (loss)		(0.45	)		0.10			0.42			(0.57	)		(0.17	)
Total from investment operations		$(0.17	)		$0.38			$0.74			$(0.24	)		$0.18
Less distributions declared to shareholders
From net investment income		$(0.32	)		$(0.39	)		$(0.39	)		$(0.44	)		$(0.35	)
Net asset value, end of period (x)		$5.28			$5.77			$5.78			$5.43			$6.11
Total return (%) (k)(r)(s)(x)		(3.08	)		6.69			13.82	(c)		(4.22	)		2.81
Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)		0.77			0.78			0.76	(c)		0.77			0.77
Expenses after expense reductions (f)		0.72			0.72			0.70	(c)		0.72			0.74
Net investment income (loss)		4.91			4.78			5.60	(c)		5.43			5.44
Portfolio turnover		40			49			41			33			43
Net assets at end of period (000 omitted)		$320,380			$384,393			$404,118			$419,474			$514,089

Service Class	Year ended
	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Net asset value, beginning of period		$5.70			$5.72			$5.37			$6.04			$6.21
Income (loss) from investment operations
Net investment income (loss) (d)		$0.26			$0.26			$0.30	(c)		$0.31			$0.33
Net realized and unrealized gain (loss)		(0.43	)		0.10			0.43			(0.56	)		(0.16	)
Total from investment operations		$(0.17	)		$0.36			$0.73			$(0.25	)		$0.17
Less distributions declared to shareholders
From net investment income		$(0.31	)		$(0.38	)		$(0.38	)		$(0.42	)		$(0.34	)
Net asset value, end of period (x)		$5.22			$5.70			$5.72			$5.37			$6.04
Total return (%) (k)(r)(s)(x)		(3.24	)		6.31			13.64	(c)		(4.42	)		2.53
Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)		1.02			1.03			1.02	(c)		1.02			1.02
Expenses after expense reductions (f)		0.97			0.97			0.95	(c)		0.97			0.99
Net investment income (loss)		4.66			4.54			5.36	(c)		5.18			5.19
Portfolio turnover		40			49			41			33			43
Net assets at end of period (000 omitted)		$44,995			$58,499			$69,189			$71,421			$84,272

(c)	Amount reflects aone-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher.

(d)	Per share data is based on average shares outstanding.

(f)	Ratios do not reflect reductions from fees paid indirectly, if applicable.

(k)	The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown.

(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.

(x)	The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes.

See Notes to Financial Statements

MFS High Yield Portfolio

NOTES TO FINANCIAL STATEMENTS

(1)

Business and Organization

MFS High Yield Portfolio (the fund) is a diversified series of MFS Variable Insurance Trust II (the trust). The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as anopen-end management investment company. The shareholders of each series of the trust are separate accounts of insurance companies, which offer variable annuity and/or life insurance products, and qualified retirement and pension plans.

(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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated subsequent events occurring after the date of the fund’s Statement of Assets and Liabilities through the date that the financial statements were issued. The fund invests in high-yield securities rated below investment grade. Investments in below investment grade quality securities can involve a substantially greater risk of default or can already be in default, and their values can decline significantly. Below investment grade quality securities tend to be more sensitive to adverse news about the issuer, or the market or economy in general, than higher quality debt instruments. The fund invests in foreign securities. Investments in foreign securities are vulnerable to the effects of changes in the relative values of the local currency and the U.S. dollar and to the effects of changes in each country’s market, economic, industrial, political, regulatory, geopolitical, and other conditions.

MFS High Yield Portfolio

Notes to Financial Statements – continued

issuance of 60 days or less may be valued at amortized cost, which approximates market value. Futures contracts are generally valued at last posted settlement price on their primary exchange as provided by a third-party pricing service. Futures contracts for which there were no trades that day for a particular position are generally valued at the closing bid quotation on their primary exchange as provided by a third-party pricing service. Forward foreign currency exchange 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.Open-end investment companies are generally valued at net asset value per share. 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. In determining values, third-party pricing services can utilize both transaction data and market information such as 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.

Various inputs are used in determining the value of the fund’s assets or liabilities. These inputs are categorized into three broad levels. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fund’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted 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, such as futures contracts and forward foreign currency exchange contracts. The following is a summary of the levels used as of December 31, 2018 in valuing the fund’s assets or liabilities:


Financial Instruments	Level 1			Level 2			Level 3		Total
Equity Securities		$—			$11,055			$991,703		$1,002,758
U.S. Corporate Bonds		—			285,264,490			—		285,264,490
Asset-Backed Securities (including CDOs)		—			119			—		119
Foreign Bonds		—			63,063,644			—		63,063,644
Floating Rate Loans		—			3,289,334			—		3,289,334
Mutual Funds		9,625,650			—			—		9,625,650
Total		$9,625,650			$351,628,642			$991,703		$362,245,995

Other Financial Instruments
Futures Contracts – Liabilities		$(156,127	)		$—			$—		$(156,127	)
Forward Foreign Currency Exchange Contracts – Assets		—			26,747			—		26,747
Forward Foreign Currency Exchange Contracts – Liabilities		—			(2,840	)		—		(2,840	)

For further information regarding security characteristics, see the Portfolio of Investments.

MFS High Yield Portfolio

Notes to Financial Statements – continued



	Equity Securities
Balance as of 12/31/17		$991,703
Change in unrealized appreciation or depreciation		0
Balance as of 12/31/18		$991,703

The net change in unrealized appreciation or depreciation from investments held as level 3 at December 31, 2018 is $0. At December 31, 2018, the fund held one level 3 security.

The derivative instruments used by the fund during the period were futures contracts and forward foreign currency exchange contracts. Depending on the type of derivative, the fund may exit a derivative position by entering into an offsetting transaction with a counterparty or exchange, negotiating an agreement with the derivative counterparty, or novating the position to a third party. The fund may be unable to promptly close out a futures position in instances where the daily fluctuation in the price for that type of future exceeds the daily limit set by the exchange. The fund’s period end derivatives, as presented in the Portfolio of Investments and the associated Derivative Contract tables, generally are indicative of the volume of its derivative activity during the period.


		Fair Value (a)
Risk	Derivative Contracts	Asset Derivatives		Liability Derivatives
Interest Rate	Interest Rate Futures		$—		$(156,127	)
Foreign Exchange	Forward Foreign Currency Exchange Contracts		26,747		(2,840	)
Total			$26,747		$(158,967	)

(a)	Values presented in this table for futures contracts correspond to the values reported in the fund’s Portfolio of Investments. Only the current day net variation margin for futures contracts is separately reported within the fund’s Statement of Assets and Liabilities.


Risk	Futures Contracts		Forward Foreign Currency Exchange Contracts
Interest Rate		$409,201		$—
Foreign Exchange		—		77,350
Total		$409,201		$77,350


Risk	Futures Contracts			Forward Foreign Currency Exchange Contracts
Interest Rate		$(223,361	)		$—
Foreign Exchange		—			23,907
Total		$(223,361	)		$23,907

MFS High Yield Portfolio

Notes to Financial Statements – continued

Futures Contracts– The fund entered into futures contracts which may be used to hedge against or obtain broad market exposure, interest rate exposure, currency exposure, or to manage duration. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date.

MFS High Yield Portfolio

Notes to Financial Statements – continued

Loans and Other Direct Debt Instruments– The fund invests in loans and loan participations or other receivables. These investments may include standby financing commitments, including revolving credit facilities, which contractually obligate the fund to supply additional cash to the borrower on demand. The fund generally provides this financial support in order to preserve its existing investment or to obtain a more senior secured interest in the assets of the borrower. Loan participations involve a risk of insolvency of the lending bank or other financial intermediary.

Investment Transactions and Income– Investment transactions are recorded on the trade date. Interest income is recorded on the accrual basis. All premium and discount is amortized or accreted for financial statement purposes in accordance with U.S. generally accepted accounting principles. The fund earns certain fees in connection with its floating rate loan purchasing activities. These fees are in addition to interest payments earned and may include amendment fees, commitment fees, facility fees, consent fees, and prepayment fees. Commitment fees are recorded on an accrual basis as income in the accompanying financial statements. Dividends received in cash are recorded on theex-dividend date. Certain dividends from foreign securities will be recorded when the fund is informed of the dividend if such information is obtained subsequent to theex-dividend date. Dividend and interest payments received in additional securities are recorded on theex-dividend orex-interest date in an amount equal to the value of the security on such date. Debt obligations may be placed onnon-accrual status or set to accrue at a rate of interest less than the contractual coupon when the collection of all or a portion of interest has become doubtful. Interest income for those debt obligations may be further reduced by thewrite-off of the related interest receivables when deemed uncollectible.

Legal fees and other related expenses incurred to preserve and protect the value of a security owned are added to the cost of the security; other legal fees are expensed. Capital infusions made directly to the security issuer, which are generallynon-recurring, incurred to protect or enhance the value of high-yield debt securities, are reported as additions to the cost basis of the security. Costs that are incurred to negotiate the terms or conditions of capital infusions or that are expected to result in a plan of reorganization are reported as realized losses. Ongoing costs incurred to protect or enhance an investment, or costs incurred to pursue other claims or legal actions, are expensed.

Book/tax differences primarily relate to amortization and accretion of debt securities.

The tax character of distributions declared to shareholders for the last two fiscal years is as follows:


	Year ended 12/31/18		Year ended 12/31/17
Ordinary income (including any short-term capital gains)		$22,864,139		$29,244,080

MFS High Yield Portfolio

Notes to Financial Statements – continued

The federal tax cost and the tax basis components of distributable earnings were as follows:


As of 12/31/18

Cost of investments	$390,406,438
Gross appreciation	1,728,195
Gross depreciation	(30,020,858	)
Net unrealized appreciation (depreciation)	$(28,292,663	)

Undistributed ordinary income	20,864,558
Capital loss carryforwards	(37,990,618	)
Other temporary differences	249


Short-Term	$(1,274,958	)
Long-Term	(36,715,660	)
Total	$(37,990,618	)


	From net investment income

	Year ended 12/31/18		Year ended 12/31/17
Initial Class		$20,085,625		$25,150,910
Service Class		2,778,514		4,093,170
Total		$22,864,139		$29,244,080

(3)

Transactions with Affiliates


Up to $1 billion			0.70%
In excess of $1 billion			0.65%

MFS has agreed in writing to reduce its management fee by a specified amount if certain MFS mutual fund assets exceed thresholds agreed to by MFS and the fund’s Board of Trustees. For the year ended December 31, 2018, this management fee reduction amounted to $39,194, which is included in the reduction of total expenses in the Statement of Operations. The management fee incurred for the year ended December 31, 2018 was equivalent to an annual effective rate of 0.69% of the fund’s average daily net assets.

The investment adviser has agreed in writing to pay a portion of the fund’s total annual operating expenses, excluding interest, taxes, extraordinary expenses, brokerage and transaction costs, and investment-related expenses, such that total annual operating expenses do not exceed 0.72% of average daily net assets for the Initial Class shares and 0.97% of average daily net assets for the Service Class shares. This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until April 30, 2020. For the year ended December 31, 2018, this reduction amounted to $175,117, which is included in the reduction of total expenses in the Statement of Operations.

MFS High Yield Portfolio

Notes to Financial Statements – continued

participating insurance companies and plan sponsors) in connection with the sale and distribution of the Service Class shares. MFD may subsequently pay all, or a portion, of the distribution and/or service fees to financial intermediaries.

Shareholder Servicing Agent– MFS Service Center, Inc. (MFSC), a wholly-owned subsidiary of MFS, receives a fee from the fund for its services as shareholder servicing agent. For the year ended December 31, 2018, the fee was $13,270, which equated to 0.0032% annually of the fund’s average daily net assets. MFSC also receives payment from the fund forout-of-pocket expenses paid by MFSC on behalf of the fund. For the year ended December 31, 2018, these costs amounted to $837.

Other– This fund and certain other funds managed by MFS (the funds) have entered into a service agreement (the ISO Agreement) which provides for payment of fees solely by the funds to Tarantino LLC in return for the provision of services of an Independent Senior Officer (ISO) for the funds. Frank L. Tarantino serves as the ISO and is an officer of the funds and the sole member of Tarantino LLC. The funds can terminate the ISO Agreement with Tarantino LLC at any time under the terms of the ISO Agreement. For the year ended December 31, 2018, the fee paid by the fund under this agreement was $702 and is included in “Miscellaneous” expense in the Statement of Operations. MFS has agreed to bear all expenses associated with office space, other administrative support, and supplies provided to the ISO.

(4)

Portfolio Securities

For the year ended December 31, 2018, purchases and sales of investments, other than short-term obligations, aggregated $160,017,348 and $201,104,411, respectively.

(5)

Shares of Beneficial Interest

The 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:


	Year ended 12/31/18						Year ended 12/31/17
	Shares			Amount			Shares			Amount
Shares sold
Initial Class		2,683,377			$15,262,881			3,789,799			$22,219,006
Service Class		318,476			1,796,833			1,361,172			8,035,087
		3,001,853			$17,059,714			5,150,971			$30,254,093
Shares issued to shareholders in reinvestment of distributions
Initial Class		3,658,584			$20,085,625			4,412,440			$25,150,910
Service Class		511,697			2,778,514			727,028			4,093,170
		4,170,281			$22,864,139			5,139,468			$29,244,080
Shares reacquired
Initial Class		(12,326,049	)		$(68,941,144	)		(11,406,776	)		$(67,327,394	)
Service Class		(2,472,313	)		(13,714,022	)		(3,919,122	)		(22,701,757	)
		(14,798,362	)		$(82,655,166	)		(15,325,898	)		$(90,029,151	)
Net change
Initial Class		(5,984,088	)		$(33,592,638	)		(3,204,537	)		$(19,957,478	)
Service Class		(1,642,140	)		(9,138,675	)		(1,830,922	)		(10,573,500	)
		(7,626,228	)		$(42,731,313	)		(5,035,459	)		$(30,530,978	)

The fund is one of several mutual funds in which certain MFS funds may invest. The MFS funds do not invest in the underlying funds for the purpose of exercising management or control. At the end of the period, the MFS Moderate Allocation Portfolio, the MFS Conservative Allocation Portfolio, and the MFS Growth Allocation Portfolio were the owners of record of approximately 19%, 6%, and 5%, respectively, of the value of outstanding voting shares of the fund.

MFS High Yield Portfolio

Notes to Financial Statements – continued

(6)

Line of Credit

The fund and certain other funds managed by MFS participate in a $1.25 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 Overnight Bank Funding rate or daily one month LIBOR plus an agreed upon spread. A commitment fee, based on the average daily, unused portion of the committed line of credit, is allocated among the participating funds. In addition, the 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, at a rate equal to the Overnight Bank Funding rate plus an agreed upon spread. For the year ended December 31, 2018, the fund’s commitment fee and interest expense were $2,385 and $0, respectively, and are included in “Miscellaneous” expense in the Statement of Operations.

(7)

Investments in Affiliated Issuers


Affiliated Issuers		Beginning Shares/Par Amount			Acquisitions Shares/Par Amount		Dispositions Shares/Par Amount			Ending Shares/Par Amount

MFS Institutional Money Market Portfolio			10,426,974			101,596,054		(102,396,416	)		9,626,612

Affiliated Issuers	Realized Gain (Loss)	Change in Unrealized Appreciation/ Depreciation			Capital Gain Distributions		Dividend Income			Ending Value

MFS Institutional Money Market Portfolio	$(784)		$(55	)		$—		$202,953			$9,625,650

(8)

Legal Proceedings

In May 2015, the Motors Liquidation Company Avoidance Action Trust (hereafter, “AAT”) served upon the fund a complaint in an adversary proceeding in the U.S. Bankruptcy Court for the Southern District of New York, captionedMotors Liquidation Company Avoidance Action Trust v. JPMorgan Chase Bank, N.A., et al.(No.09-00504 (REG)). The complaint, which was originally filed in 2009 but not served on the fund until 2015, names as defendants over 500 entities (including the fund) that held an interest in a $1.5 billion General Motors (GM) term loan in 2009, when GM filed for bankruptcy. The AAT alleges that the fund and the other term loan lenders were improperly treated as secured lenders with respect to the term loan shortly before and immediately after GM’s bankruptcy, receiving full principal and interest payments under the loan. The AAT alleges that the fund and other term loan lenders should have been treated as unsecured (or partially unsecured) creditors because the main lien securing the collateral was allegedly not perfected at the time of GM’s bankruptcy due to an erroneous filing in October 2008 that terminated the financing statement perfecting the lien. The AAT seeks to claw back payments made to the fund and the other term loan lenders after, and during the 90 days before, GM’s June 2009 bankruptcy petition. During that time period, the fund received term loan payments of approximately $3,720,000. The fund cannot predict the outcome of this proceeding. Among other things, it is unclear whether the AAT’s claims will succeed; what the fund would be entitled to as an unsecured (or partially unsecured) creditor, given the existence of other collateral not impacted by the erroneous October 2008 filing; whether third parties responsible for the erroneous October 2008 filing would bear some or all of any liability; and the degree to which the fund may be entitled to indemnification from a third party for any amount required to be disgorged. The fund has and will continue to incur legal expenses associated with the defense of this action and in related claims against third parties.

MFS High Yield Portfolio

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees of MFS Variable Insurance Trust II and the Shareholders of

MFS High Yield Portfolio:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities of MFS High Yield Portfolio (the “Fund”), including the portfolio of investments, as of December 31, 2018, the related statement 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of December 31, 2018, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian, brokers and agent banks; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

DELOITTE & TOUCHE LLP

Boston, Massachusetts

February 15, 2019

We have served as the auditor of one or more of the MFS investment companies since 1924.

MFS High Yield Portfolio

TRUSTEES AND OFFICERS – IDENTIFICATION AND BACKGROUND


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds overseen by the Trustee	Principal Occupations During the Past Five Years	Other Directorships During the Past Five Years (j)
INTERESTED TRUSTEES
Robert J. Manning (k) (age 55)	Trustee	February 2004	135	Massachusetts Financial Services Company, Executive Chairman (since January 2017); Director; Chairman of the Board; Chief Executive Officer (until 2015);Co-Chief Executive Officer(2015-2016)	N/A

Robin A. Stelmach (k) (age 57)	Trustee	January 2014	135	Massachusetts Financial Services Company, Vice Chair (since January 2017); Chief Operating Officer and Executive Vice President (until January 2017)	N/A

INDEPENDENT TRUSTEES
John P. Kavanaugh (age 64)	Trustee and Chair of Trustees	January 2009	135	Private investor	N/A

Steven E. Buller (age 67)	Trustee	February 2014	135	Financial Accounting Standards Advisory Council, Chairman(2014-2015); Public Company Accounting Oversight Board, Standing Advisory Group, Member (until 2014); BlackRock, Inc. (investment management), Managing Director (until 2014), BlackRock Finco UK (investment management), Director (until 2014)	N/A

John A. Caroselli (age 64)	Trustee	March 2017	135	JC Global Advisors, LLC (management consulting), President (since 2015); First Capital Corporation (commercial finance), Executive Vice President (until 2015)	N/A

Maureen R. Goldfarb (age 63)	Trustee	January 2009	135	Private investor	N/A

Michael Hegarty (age 74)	Trustee	December 2004	135	Private investor	Rouse Properties Inc., Director (until 2016); Capmark Financial Group Inc., Director (until 2015)

Peter D. Jones (age 63)	Trustee	January 2019	135	Franklin Templeton Distributors, Inc. (investment management), President (until 2015); Franklin Templeton Institutional, LLC (investment management), Chairman (until 2015)	N/A

James W. Kilman, Jr. (age 57)	Trustee	January 2019	135	KielStrand Capital LLC (family office and merchant bank), Chief Executive Officer (since 2016); Morgan Stanley & Co. (financial services), Vice Chairman of Investment Banking,Co-Head of Diversified Financials Coverage – Financial Institutions Investment Banking Group (until 2016)	alpha-En Corporation, Director (since 2016)

MFS High Yield Portfolio

Trustees and Officers – continued


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds overseen by the Trustee	Principal Occupations During the Past Five Years	Other Directorships During the Past Five Years (j)
Clarence Otis, Jr. (age 62)	Trustee	March 2017	135	Darden Restaurants, Inc., Chief Executive Officer (until 2014)	VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director; Federal Reserve Bank of Atlanta, Director (until 2015)

Maryanne L. Roepke (age 62)	Trustee	May 2014	135	American Century Investments (investment management), Senior Vice President and Chief Compliance Officer (until 2014)	N/A

Laurie J. Thomsen (age 61)	Trustee	March 2005	135	Private investor	The Travelers Companies, Director; Dycom Industries, Inc., Director (since 2015)


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds for which the Person is an Officer	Principal Occupations During the Past Five Years
OFFICERS
Christopher R. Bohane (k) (age 45)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Vice President and Assistant General Counsel

Kino Clark (k) (age 50)	Assistant Treasurer	January 2012	135	Massachusetts Financial Services Company, Vice President

John W. Clark, Jr. (k) (age 51)	Assistant Treasurer	April 2017	135	Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head – Treasurer’s Office (until February 2017)

Thomas H. Connors (k) (age 59)	Assistant Secretary and Assistant Clerk	September 2012	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Ethan D. Corey (k) (age 55)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel

David L. DiLorenzo (k) (age 50)	President	July 2005	135	Massachusetts Financial Services Company, Senior Vice President

Heidi W. Hardin (k) (age 51)	Secretary and Clerk	April 2017	135	Massachusetts Financial Services Company, Executive Vice President and General Counsel (since March 2017); Harris Associates (investment management), General Counsel (from September 2015 to January 2017); Janus Capital Management LLC (investment management), Senior Vice President and General Counsel (until September 2015)

Brian E. Langenfeld (k) (age 45)	Assistant Secretary and Assistant Clerk	June 2006	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Amanda S. Mooradian (k) (age 39)	Assistant Secretary and Assistant Clerk	September 2018	135	Massachusetts Financial Services Company, Assistant Vice President and Counsel

Susan A. Pereira (k) (age 48)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Kasey L. Phillips (k) (age 48)	Assistant Treasurer	September 2012	135	Massachusetts Financial Services Company, Vice President

Matthew A. Stowe (k) (age 44)	Assistant Secretary and Assistant Clerk	October 2014	135	Massachusetts Financial Services Company, Vice President and Assistant General Counsel

MFS High Yield Portfolio

Trustees and Officers – continued


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds for which the Person is an Officer	Principal Occupations During the Past Five Years
Frank L. Tarantino (age 74)	Independent Senior Officer	June 2004	135	Tarantino LLC (provider of compliance services), Principal

Richard S. Weitzel (k) (age 48)	Assistant Secretary and Assistant Clerk	October 2007	135	Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel

Martin J. Wolin (k) (age 51)	Chief Compliance Officer	July 2015	135	Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer (since July 2015); Mercer (financial service provider), Chief Risk and Compliance Officer, North America and Latin America (until June 2015)

James O. Yost (k) (age 58)	Treasurer	September 1990	135	Massachusetts Financial Services Company, Senior Vice President

(h)

(j)	Directorships or trusteeships of companies required to report to the Securities and Exchange Commission (i.e., “public companies”).

(k)

Messrs. Buller, Hegarty, Kilman and Otis and Ms. Roepke are members of the Trust’s Audit Committee.

Each of the Interested Trustees and certain Officers hold comparable officer positions with certain affiliates of MFS.

The Statement of Additional Information for a Fund includes further information about the Trustees and is available without charge upon request by calling1-800-225-2606.


Investment Adviser Massachusetts Financial Services Company 111 Huntington Avenue Boston, MA 02199-7618		Custodian State Street Bank and Trust Company 1 Lincoln Street Boston, MA 02111-2900
Distributor MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618		Independent Registered Public Accounting Firm Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116
Portfolio Manager(s) David Cole Michael Skatrud

MFS High Yield Portfolio

BOARD REVIEW OF INVESTMENT ADVISORY AGREEMENT

Based on information provided by Broadridge and MFS, the Trustees reviewed the Fund’s total return investment performance as well as the Broadridge performance universe over various time periods. The Trustees placed particular emphasis on the total return performance of the Fund’s Initial Class shares in comparison to the performance of funds in its Broadridge performance universe over the three-year period ended December 31, 2017, which the Trustees believed was a long enough period to reflect differing market conditions. The total return performance of the Fund’s Initial Class shares was in the 3rd quintile relative to the other funds in the universe for this three-year period (the 1st quintile being the best performers and the 5th quintile being the worst performers). The total return performance of the Fund’s Initial Class shares was in the 3rd quintile for each of theone- and five-year periods ended December 31, 2017 relative to the Broadridge performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.

MFS High Yield Portfolio

Board Review of Investment Advisory Agreement – continued

In assessing the reasonableness of the Fund’s advisory fee, the Trustees considered, among other information, the Fund’s advisory fee and the total expense ratio of the Fund’s Initial Class shares as a percentage of average daily net assets and the advisory fee and total expense ratios of peer groups of funds based on information provided by Broadridge. The Trustees considered that MFS currently observes an expense limitation for the Fund, which may not be changed without the Trustees’ approval. The Trustees also considered that, according to the data provided by Broadridge (which takes into account any fee reductions or expense limitations that were in effect during the Fund’s last fiscal year), the Fund’s effective advisory fee rate was higher than the Broadridge expense group median and the Fund’s total expense ratio was approximately at the Broadridge expense group median.

The Trustees also considered whether the Fund may benefit from any economies of scale in the management of the Fund in the event of growth in assets of the Fund and/or growth in assets of the MFS Funds as a whole. They noted that the Fund’s advisory fee rate schedule is subject to a contractual breakpoint that reduces the Fund’s advisory fee rate on average daily net assets over $1 billion. The Trustees also noted that MFS has agreed in writing to waive a portion of the management fees of certain MFS Funds, including the Fund, if the total combined assets of certain funds within the MFS Funds’ complex increase above agreed upon thresholds (the “group fee waiver”), enabling the Fund’s shareholders to share in the benefits from any economies of scale at the complex level. The group fee waiver is reviewed and renewed annually between the Board and MFS. The Trustees concluded that the breakpoint and the group fee waiver were sufficient to allow the Fund to benefit from economies of scale as its assets and overall complex assets grow.

MFS High Yield Portfolio

PROXY VOTING POLICIES AND INFORMATION

QUARTERLY PORTFOLIO DISCLOSURE

FURTHER INFORMATION

INFORMATION ABOUT FUND CONTRACTS AND LEGAL CLAIMS

rev. 3/16



FACTS		WHAT DOES MFS DO WITH YOUR PERSONAL INFORMATION?


Why?		Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.

What?

The types of personal information we collect and share depend on the product or service you have with us. This information can include:

• Social Security number and account balances

• Account transactions and transaction history

• Checking account information and wire transfer instructions

When you areno longer our customer, we continue to share your information as described in this notice.


How?		All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons MFS chooses to share; and whether you can limit this sharing.


Reasons we can share your personal information	Does MFS share?	Can you limit this sharing?
For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes – to offer our products and services to you	No	We don’t share
For joint marketing with other financial companies	No	We don’t share
For our affiliates’ everyday business purposes – information about your transactions and experiences	No	We don’t share
For our affiliates’ everyday business purposes – information about your creditworthiness	No	We don’t share
For nonaffiliates to market to you	No	We don’t share



Questions?		Call800-225-2606 or go tomfs.com.


Page 2


Who we are
Who is providing this notice?		MFS Funds, MFS Investment Management, MFS Institutional Advisors, Inc., and MFS Heritage Trust Company.


What we do
How does MFS protect my personal information?		To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include procedural, electronic, and physical safeguards for the protection of the personal information we collect about you.
How does MFS collect my personal information?		We collect your personal information, for example, when you • open an account or provide account information • direct us to buy securities or direct us to sell your securities • make a wire transfer We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can’t I limit all sharing?		Federal law gives you the right to limit only • sharing for affiliates’ everyday business purposes – information about your creditworthiness • affiliates from using your information to market to you • sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing.


Definitions
Affiliates		Companies related by common ownership or control. They can be financial and nonfinancial companies. • MFS does not share personal information with affiliates, except for everyday business purposes as described on page one of this notice.
Nonaffiliates		Companies not related by common ownership or control. They can be financial and nonfinancial companies. • MFS does not share with nonaffiliates so they can market to you.
Joint marketing		A formal agreement between nonaffiliated financial companies that together market financial products or services to you. • MFS doesn’t jointly market.


Other important information
If you own an MFS product or receive an MFS service in the name of a third party such as a bank or broker-dealer, their privacy policy may apply to you instead of ours.

LOGO

Annual Report

December 31, 2018

LOGO

MFS^® International Growth Portfolio

LOGO

MFS^® Variable Insurance Trust II

FCI-ANN

MFS® International Growth Portfolio

CONTENTS

The report is prepared for the general information of contract owners. 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 OR CREDIT UNION GUARANTEE• NOT A DEPOSIT• NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY OR NCUA/NCUSIF

MFS International Growth Portfolio

LETTER FROM THE EXECUTIVE CHAIRMAN

LOGO

Dear Contract Owners:

Respectfully,

LOGO

Robert J. Manning

Executive Chairman

MFS Investment Management

February 15, 2019

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

MFS International Growth Portfolio

PORTFOLIO COMPOSITION

Portfolio structure

LOGO


Top ten holdings
Nestle S.A.			4.5%
Roche Holding AG			4.1%
AIA Group Ltd.			3.3%
Taiwan Semiconductor Manufacturing Co. Ltd., ADR			3.2%
SAP AG			3.1%
L’Oréal			2.6%
LVMH Moet Hennessy Louis Vuitton SE			2.6%
Pernod Ricard S.A.			2.5%
Danone S.A.			2.4%
Novartis AG			2.4%

GICS equity sectors
Consumer Staples			21.5%
Information Technology			13.7%
Industrials			13.4%
Health Care			13.2%
Financials			12.1%
Consumer Discretionary			10.4%
Materials			8.2%
Communication Services			4.4%
Energy			1.8%
Utilities			0.5%


Issuer country weightings (x)
France		17.8%
Switzerland	��	13.7%
United Kingdom		11.3%
Germany		9.5%
Japan		8.8%
United States		5.9%
China		5.0%
India		4.1%
Canada		3.9%
Other Countries		20.0%

Currency exposure weightings (y)
Euro		33.0%
Swiss Franc		13.7%
British Pound Sterling		12.0%
Japanese Yen		8.8%
United States Dollar		7.5%
Hong Kong Dollar		4.5%
Indian Rupee		4.1%
Taiwan Dollar		3.7%
Chinese Renminbi		2.8%
Other Currencies		9.9%

(x)	Represents the portfolio’s exposure to issuer countries as a percentage of a portfolio’s net assets. For purposes of this presentation, United States includes Cash & Cash Equivalents.

(y)	Represents the portfolio’s exposure to a particular currency as a percentage of a portfolio’s net assets. For purposes of this presentation, United States Dollar includes Cash & Cash Equivalents.

Percentages are based on net assets as of December 31, 2018.

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

MFS International Growth Portfolio

MANAGEMENT REVIEW

Summary of Results

For the twelve months ended December 31, 2018, Initial Class shares of the MFS International Growth Portfolio (“fund”) provided a total return of –9.02%, while Service Class shares of the fund provided a total return of –9.30%. These compare with a return of –14.43% over the same period for the fund’s benchmark, the MSCI All Country World(ex-US) Growth Index (net div).

Market Environment

Contributors to Performance

Stock selection in theconsumer discretionary sector contributed to performance relative to the MSCI All Country World(ex-US) Growth Index. Within this sector, the fund’s overweight position in apparel and accessories retailer Kering (France) aided relative results.

Stock selection in both theinformation technologyandmaterialssectors also benefited relative returns. Within theinformation technology sector, the fund’s holdings of management consulting firm Accenture (b), and an overweight position in software solutions and consulting services firm Dassault Systems (h) (France), bolstered relative performance. Within the materials sector, an overweight position in industrial gas supplier Linde (Germany) strengthened relative returns. The stock price of Linde advanced as management reported solid results during the period driven, in part, by higher-than-expected sales growth within the company’s engineering and gas divisions.

A combination of stock selection and an overweight allocation to theconsumer staplessector positively impacted relative results. The fund’s overweight positions in personal and household products company L’Oréal (France) and wine and alcoholic beverage producer Pernod Ricard (France) boosted relative performance.

Other top relative contributors during the period included the fund’s overweight positions in medical products and equipment manufacturer Terumo (Japan) and pharmaceutical and diagnostic company Roche Holding (Switzerland). The stock price of Terumo appreciated as the company reported solid earnings results which reflected strong growth in overseas sales and profits, driven by its cardiac & vascular business. Additionally, the timing of the fund’s ownership in shares of pharmaceutical company Novartis AG (Switzerland), and holding shares of Indian banking firm HDFC Bank (b), helped relative returns.

Detractors from Performance

Stock selection in thecommunication services sector detracted from the fund’s relative performance. Within this sector, an overweight position in internet search company Baidu (China), and holding shares of advertising and marketing firm WPP (b) (United Kingdom), weakened relative returns. The stock price of Baidu traded lower as investors appeared to be concerned over the intensifying trade war dispute between the US and China, as well as the possibility of Google re-entering the Chinese market.

MFS International Growth Portfolio

Management Review – continued

Stock selection within theindustrialssector also held back relative results, led by the fund’s overweight positions in industrial process technology manufacturer GEA Group (Germany), building products supplier Toto (Japan) and cable manufacturer and installer Prysmian (Italy).

Elsewhere, the timing of the fund’s ownership in shares of healthcare and agricultural products producer Bayer AG (Germany) negatively impacted relative performance. The stock price of Bayer depreciated after a court awarded damages to an individual who claimed to have contractedNon-Hodgkin’s Lymphoma cancer from glyphosate herbicide, which was discovered and branded as Roundup by Monsanto, whom Bayer acquired in 2018. The stock traded significantly lower after the news, as investors appeared to have been concerned that more lawsuits would be filed against Bayer. In addition, the fund’s overweight positions in global healthcare group Fresenius Medical Care AG & Co. KGaA (Germany), private banking services provider Julius Baer Group (Switzerland) and pharmaceutical and general merchandise retailer Sundrug (Japan), and holding shares of investment management and banking firm UBS (b) (Switzerland), further weighed on relative results.

Respectfully,

Portfolio Manager(s)

David Antonelli, Matthew Barrett, and Kevin Dwan

(b)	Security is not a benchmark constituent.

(h)	Security was not held in the portfolio at period end.

MFS International Growth Portfolio

PERFORMANCE SUMMARY THROUGH 12/31/18

Growth of a Hypothetical $10,000 Investment

LOGO

Total Returns through 12/31/18

Average annual total returns


	Share Class	Class Inception Date	1-yr	5-yr	10-yr
	Initial Class	6/03/96	(9.02)%	3.35%	8.60%
	Service Class	8/24/01	(9.30)%	3.08%	8.32%

Comparative benchmark(s)
	MSCI All Country World(ex-US) Growth Index (net div) (f)		(14.43)%	1.69%	7.15%

(f)	Source: FactSet Research Systems Inc.

Benchmark Definition(s)

MSCI All Country World (ex-US) Growth Index (net div) – a market capitalization-weighted index that is designed to measure equity market performance for growth securities in the global developed and emerging markets, excluding the U.S.

It is not possible to invest directly in an index.

Notes to Performance Summary

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

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

MFS International Growth Portfolio

EXPENSE TABLE

Fund Expenses Borne by the Contract Holders during the Period,

July 1, 2018 through December 31, 2018

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period July 1, 2018 through December 31, 2018.

Actual Expenses

Hypothetical Example for Comparison Purposes


Share Class		Annualized Expense Ratio		Beginning Account Value 7/01/18		Ending Account Value 12/31/18		Expenses Paid During Period (p) 7/01/18-12/31/18
Initial Class	Actual		0.91%		$1,000.00		$899.93		$4.36
Initial Class	Hypothetical (h)		0.91%		$1,000.00		$1,020.62		$4.63
Service Class	Actual		1.16%		$1,000.00		$898.80		$5.55
Service Class	Hypothetical (h)		1.16%		$1,000.00		$1,019.36		$5.90

(h)	5% class return per year before expenses.

(p)	“Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect theone-half year period).

Notes to Expense 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 ratios, the actual expenses paid during the period, and the hypothetical expenses paid during the period would have been approximately 0.88%, $4.21, and $4.48 for Initial Class and 1.13%, $5.41, and $5.75 for Service Class, respectively. 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.

MFS International Growth Portfolio

PORTFOLIO OF INVESTMENTS – 12/31/18

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



Issuer	Shares/Par		Value ($)
COMMON STOCKS – 99.2%
Aerospace – 1.5%
Rolls-Royce Holdings PLC		188,347	$	1,992,556

Alcoholic Beverages – 5.8%
Ambev S.A., ADR		159,272	$	624,346
China Resources Beer Holdings Co. Ltd.		288,000		1,005,913
Diageo PLC		79,058		2,816,446
Pernod Ricard S.A.		19,918		3,270,256

			$	7,716,961

Apparel Manufacturers – 4.5%
Burberry Group PLC		41,162	$	910,532
Kering S.A.		3,492		1,646,794
LVMH Moet Hennessy Louis Vuitton SE		11,532		3,411,541

			$	5,968,867

Broadcasting – 1.4%
Publicis Groupe S.A.		15,739	$	903,090
WPP PLC		90,409		975,582

			$	1,878,672

Business Services – 5.8%
Accenture PLC, “A”		13,096	$	1,846,667
Brenntag AG		21,696		937,153
Compass Group PLC		58,886		1,238,425
Experian PLC		78,128		1,897,036
Infosys Technologies Ltd., ADR		109,640		1,043,773
Intertek Group PLC		12,910		789,844

			$	7,752,898

Computer Software – 3.9%
OBIC Co. Ltd.		12,500	$	956,635
SAP AG		41,915		4,174,735

			$	5,131,370

Computer Software – Systems – 3.4%
Amadeus IT Group S.A.		19,996	$	1,393,869
Hitachi Ltd.		63,000		1,674,654
Luxoft Holding, Inc. (a)		12,965		394,395
NICE Systems Ltd., ADR (a)		9,370		1,013,928

			$	4,476,846

Construction – 0.7%
Toto Ltd.		28,000	$	962,490

Consumer Products – 5.9%
Kao Corp.		20,500	$	1,511,381
L’Oréal		14,999		3,457,642
Reckitt Benckiser Group PLC		37,461		2,871,074

			$	7,840,097

Consumer Services – 0.3%
51job, Inc., ADR (a)		6,168	$	385,130

Containers – 1.0%
Brambles Ltd.		184,980	$	1,322,450



Issuer	Shares/Par		Value ($)
COMMON STOCKS – continued
Electrical Equipment – 3.5%
Legrand S.A.		10,896	$	615,466
Mettler-Toledo International, Inc. (a)		1,347		761,836
Prysmian S.p.A.		46,514		901,901
Schneider Electric S.A.		35,519		2,430,358

			$	4,709,561

Electronics – 4.3%
MediaTek, Inc.		88,000	$	657,058
Mellanox Technologies Ltd. (a)		9,668		893,130
Taiwan Semiconductor Manufacturing Co. Ltd., ADR		114,214		4,215,639

			$	5,765,827

Energy – Independent – 1.2%
Caltex Australia Ltd.		29,206	$	524,155
Oil Search Ltd.		219,787		1,108,418

			$	1,632,573

Energy – Integrated – 0.5%
Suncor Energy, Inc.		25,307	$	706,824

Food & Beverages – 6.9%
Danone S.A.		44,885	$	3,163,273
Nestle S.A.		74,170		6,030,084

			$	9,193,357

Food & Drug Stores – 0.9%
Sundrug Co. Ltd.		40,900	$	1,216,591

Gaming & Lodging – 0.7%
Paddy Power Betfair PLC		11,866	$	967,962

Insurance – 3.3%
AIA Group Ltd.		528,400	$	4,386,182

Internet – 3.3%
Alibaba Group Holding Ltd., ADR (a)		5,964	$	817,485
Baidu, Inc., ADR (a)		16,327		2,589,462
NAVER Corp. (a)		9,239		1,006,661

			$	4,413,608

Leisure & Toys – 0.6%
BANDAI NAMCO Holdings, Inc.		18,600	$	829,875

Machinery & Tools – 1.8%
GEA Group AG		43,460	$	1,120,371
Ritchie Bros. Auctioneers, Inc.		39,877		1,304,503

			$	2,424,874

Major Banks – 1.4%
UBS AG		146,210	$	1,825,134

Medical & Health Technology & Services – 1.1%
Fresenius Medical Care AG & Co. KGaA		22,902	$	1,486,231

Medical Equipment – 4.3%
EssilorLuxottica		20,744	$	2,625,113
QIAGEN N.V. (a)		42,659		1,450,655

MFS International Growth Portfolio

Portfolio of Investments – continued



Issuer	Shares/Par		Value ($)
COMMON STOCKS – continued
Medical Equipment – continued
Terumo Corp.		29,900	$	1,679,765

			$	5,755,533

Metals & Mining – 0.3%
Grupo Mexico S.A.B. de C.V., “B”		162,874	$	335,167

Natural Gas – Distribution – 0.5%
China Resources Gas Group Ltd.		158,000	$	625,503

Other Banks & Diversified Financials – 7.4%
Aeon Credit Service Co. Ltd.		61,900	$	1,111,957
Credicorp Ltd.		4,231		937,886
DBS Group Holdings Ltd.		108,700		1,889,360
Element Fleet Management Corp.		72,884		368,904
Grupo Financiero Banorte S.A. de C.V.		234,975		1,145,237
Grupo Financiero Inbursa S.A. de C.V.		189,463		272,745
HDFC Bank Ltd.		95,216		2,893,644
Julius Baer Group Ltd.		25,220		901,206
Komercni Banka A.S.		10,451		394,101

			$	9,915,040

Pharmaceuticals – 9.2%
Bayer AG		35,040	$	2,431,307
Novartis AG		36,599		3,134,645
Novo Nordisk A.S., “B”		25,412		1,168,131
Roche Holding AG		22,268		5,506,303

			$	12,240,386

Railroad & Shipping – 2.4%
Adani Ports and Special Economic Zone Ltd.		51,738	$	287,314
Canadian National Railway Co.		38,427		2,847,825

			$	3,135,139

Restaurants – 0.9%
Yum China Holdings, Inc.		35,043	$	1,174,992

Specialty Chemicals – 8.0%
Akzo Nobel N.V.		29,058	$	2,343,841
Croda International PLC		21,384		1,276,945
L’Air Liquide S.A.		17,231		2,141,065
Linde PLC		18,343		2,911,834
Sika AG		6,529		829,793
Symrise AG		14,959		1,105,483

			$	10,608,961



Issuer	Shares/Par		Value ($)
COMMON STOCKS – continued
Specialty Stores – 0.2%
Just Eat PLC (a)		29,256	$	218,816

Telecommunications – Wireless – 0.3%
SoftBank Corp.		5,200	$	342,757

Tobacco – 2.0%
ITC Ltd.		316,826	$	1,278,150
Japan Tobacco, Inc.		60,600		1,437,730

			$	2,715,880

Total Common Stocks (Identified Cost, $98,324,033)			$	132,055,110


INVESTMENT COMPANIES (h) – 0.3%
Money Market Funds – 0.3%
MFS Institutional Money Market Portfolio, 2.4% (v) (Identified Cost, $468,227)		468,274	$	468,227

OTHER ASSETS, LESS LIABILITIES – 0.5%				628,757

NET ASSETS – 100.0%			$	133,152,094

(a)

Non-income producing security.

(h)

(v)

The following abbreviations are used in this report and are defined:

ADR

American Depositary Receipt

PLC

Public Limited Company

See Notes to Financial Statements

MFS International Growth Portfolio

FINANCIAL STATEMENTS ^| STATEMENT OF ASSETS AND LIABILITIES

This statement represents your fund’s balance sheet, which details the assets and liabilities comprising the total value of the fund.


At 12/31/18

Assets
Investments in unaffiliated issuers, at value (identified cost, $98,324,033)			$132,055,110
Investments in affiliated issuers, at value (identified cost, $468,227)			468,227
Foreign currency, at value (identified cost, $12,525)			12,623
Receivables for
Investments sold			122,786
Fund shares sold			56,814
Interest and dividends			559,285
Receivable from investment adviser			9,013
Other assets			1,290
Total assets			$133,285,148

Liabilities
Payables for
Investments purchased			$27,510
Fund shares reacquired			24,963
Payable to affiliates
Shareholder servicing costs			45
Distribution and/or service fees			736
Payable for independent Trustees’ compensation			2
Deferred country tax expense payable			1,044
Accrued expenses and other liabilities			78,754
Total liabilities			$133,054
Net assets			$133,152,094

Net assets consist of
Paid-in capital			$83,691,887
Total distributable earnings (loss)			49,460,207
Net assets			$133,152,094
Shares of beneficial interest outstanding			10,442,727



	Net assets		Shares outstanding		Net asset value per share
Initial Class		$105,918,997		8,290,481		$12.78
Service Class		27,233,097		2,152,246		12.65

See Notes to Financial Statements

MFS International Growth Portfolio

FINANCIAL STATEMENTS ^| STATEMENT OF OPERATIONS

This statement describes how much your fund earned in investment income and accrued in expenses. It also describes any gains and/or losses generated by fund operations.


Year ended 12/31/18

Net investment income (loss)
Income
Dividends	$3,224,788
Non-cash dividends	255,437
Income on securities loaned	22,411
Dividends from affiliated issuers	17,039
Other	720
Foreign taxes withheld	(314,119	)
Total investment income	$3,206,276
Expenses
Management fee	$1,358,138
Distribution and/or service fees	73,404
Shareholder servicing costs	5,138
Administrative services fee	31,766
Independent Trustees’ compensation	3,622
Custodian fee	71,397
Shareholder communications	10,312
Audit and tax fees	75,286
Legal fees	1,354
Miscellaneous	22,229
Total expenses	$1,652,646
Reduction of expenses by investment adviser	(115,366	)
Net expenses	$1,537,280
Net investment income (loss)	$1,668,996

Realized and unrealized gain (loss)
Realized gain (loss) (identified cost basis)
Unaffiliated issuers	$15,719,307
Affiliated issuers	(202	)
Foreign currency	(21,495	)
Net realized gain (loss)	$15,697,610
Change in unrealized appreciation or depreciation
Unaffiliated issuers (net of $8,366 decrease in deferred country tax)	$(30,582,945	)
Translation of assets and liabilities in foreign currencies	(1,554	)
Net unrealized gain (loss)	$(30,584,499	)
Net realized and unrealized gain (loss)	$(14,886,889	)
Change in net assets from operations	$(13,217,893	)

See Notes to Financial Statements

MFS International Growth Portfolio

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
	12/31/18			12/31/17
Change in net assets
From operations
Net investment income (loss)		$1,668,996			$1,451,186
Net realized gain (loss)		15,697,610			13,256,650
Net unrealized gain (loss)		(30,584,499	)		29,774,389
Change in net assets from operations		$(13,217,893	)		$44,482,225
Total distributions to shareholders (a)		$(14,569,147	)		$(5,685,201	)
Change in net assets from fund share transactions		$804,364			$(30,606,861	)
Total change in net assets		$(26,982,676	)		$8,190,163
Net assets
At beginning of period		160,134,770			151,944,607
At end of period (b)		$133,152,094			$160,134,770

(a)	Distributions from net investment income and from net realized gain are no longer required to be separately disclosed. See Note 2. For the year ended December 31, 2017, distributions from net investment income and from net realized gain were $2,027,014 and $3,658,187, respectively.

(b)	Parenthetical disclosure of undistributed net investment income is no longer required. See Note 2. For the year ended December 31, 2017, end of period net assets included undistributed net investment income of $1,447,800.

See Notes to Financial Statements

MFS International Growth Portfolio

FINANCIAL STATEMENTS ^| FINANCIAL HIGHLIGHTS


Initial Class	Year ended
	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Net asset value, beginning of period		$15.50			$12.13			$12.57			$13.29			$14.77
Income (loss) from investment operations
Net investment income (loss) (d)		$0.17			$0.14			$0.17	(c)		$0.13			$0.21
Net realized and unrealized gain (loss)		(1.38	)		3.77			0.19			(0.11	)(g)		(0.90	)
Total from investment operations		$(1.21	)		$3.91			$0.36			$0.02			$(0.69	)
Less distributions declared to shareholders
From net investment income		$(0.16	)		$(0.20	)		$(0.15	)		$(0.22	)		$(0.13	)
From net realized gain		(1.35	)		(0.34	)		(0.65	)		(0.52	)		(0.66	)
Total distributions declared to shareholders		$(1.51	)		$(0.54	)		$(0.80	)		$(0.74	)		$(0.79	)
Net asset value, end of period (x)		$12.78			$15.50			$12.13			$12.57			$13.29
Total return (%) (k)(r)(s)(x)		(9.02	)		32.64			2.49	(c)		0.32			(4.98	)
Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)		1.05			1.05			0.91	(c)		1.03			1.02
Expenses after expense reductions (f)		0.97			1.05			0.91	(c)		1.03			1.01
Net investment income (loss)		1.16			0.96			1.33	(c)		0.99			1.44
Portfolio turnover		18			10			15			22			22
Net assets at end of period (000 omitted)		$105,919			$130,591			$126,668			$138,482			$164,724

Service Class	Year ended
	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Net asset value, beginning of period		$15.37			$12.03			$12.48			$13.19			$14.66
Income (loss) from investment operations
Net investment income (loss) (d)		$0.13			$0.10			$0.13	(c)		$0.10			$0.17
Net realized and unrealized gain (loss)		(1.38	)		3.74			0.18			(0.11	)(g)		(0.88	)
Total from investment operations		$(1.25	)		$3.84			$0.31			$(0.01	)		$(0.71	)
Less distributions declared to shareholders
From net investment income		$(0.12	)		$(0.16	)		$(0.11	)		$(0.18	)		$(0.10	)
From net realized gain		(1.35	)		(0.34	)		(0.65	)		(0.52	)		(0.66	)
Total distributions declared to shareholders		$(1.47	)		$(0.50	)		$(0.76	)		$(0.70	)		$(0.76	)
Net asset value, end of period (x)		$12.65			$15.37			$12.03			$12.48			$13.19
Total return (%) (k)(r)(s)(x)		(9.30	)		32.35			2.15	(c)		0.10			(5.19	)
Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)		1.30			1.30			1.16	(c)		1.28			1.27
Expenses after expense reductions (f)		1.22			1.30			1.16	(c)		1.28			1.26
Net investment income (loss)		0.87			0.70			1.08	(c)		0.72			1.19
Portfolio turnover		18			10			15			22			22
Net assets at end of period (000 omitted)		$27,233			$29,544			$25,277			$26,144			$30,365

See Notes to Financial Statements

MFS International Growth Portfolio

Financial Highlights – continued

(c)	Amount reflects aone-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher.

(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 varies from 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.

(k)	The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown.

(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.

(x)	The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes.

See Notes to Financial Statements

MFS International Growth Portfolio

NOTES TO FINANCIAL STATEMENTS

(1)

Business and Organization

MFS International Growth Portfolio (the fund) is a diversified series of MFS Variable Insurance Trust II (the trust). The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as anopen-end management investment company. The shareholders of each series of the trust are separate accounts of insurance companies, which offer variable annuity and/or life insurance products, and qualified retirement and pension plans.

(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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated subsequent events occurring after the date of the fund’s Statement of Assets and Liabilities through the date that the financial statements were issued. The fund invests in foreign securities, including securities of emerging market issuers. Investments in foreign securities are vulnerable to the effects of changes in the relative values of the local currency and the U.S. dollar and to the effects of changes in each country’s market, economic, industrial, political, regulatory, geopolitical, and other conditions. Investments in emerging markets can involve additional and greater risks than the risks associated with investments in developed foreign markets. Emerging markets can have less developed markets, greater custody and operational risk, less developed legal, regulatory, and accounting systems, and greater political, social, and economic instability than developed markets.

Balance Sheet Offsetting – The fund’s accounting policy with respect to balance sheet offsetting is that, absent an event of default by the counterparty or a termination of the agreement, the International Swaps and Derivatives Association (ISDA) Master Agreement, or similar agreement, does not result in an offset of reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities across transactions between the fund and the applicable counterparty. The fund’s right to setoff may be restricted or prohibited by the bankruptcy or insolvency laws of the particular jurisdiction to which a specific master netting agreement counterparty is subject. Balance sheet offsetting disclosures, to the extent applicable to the fund, have been included in the fund’s Significant Accounting Policies note under the captions for each of the fund’sin-scope financial instruments and transactions.

Investment Valuations – Equity securities, including restricted equity securities, are generally valued at the last sale or official closing price on their primary market or exchange as provided by a third-party pricing service. Equity securities, for which there were no sales reported that day, are generally valued at the last quoted daily bid quotation on their primary market or exchange as provided by a third-party pricing service. Short-term instruments with a maturity at issuance of 60 days or less may be valued at amortized cost, which approximates market value.Open-end investment companies are generally valued at net asset value per share. 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. In determining values, third-party pricing services can utilize both transaction data and market information such as 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.

MFS International Growth Portfolio

Notes to Financial Statements – continued

The Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of the 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 the 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 effect 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 the 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 the fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the fund determines its net asset value per share.


Financial Instruments	Level 1		Level 2		Level 3		Total
Equity Securities:
France		$23,664,597		$—		$—		$23,664,597
Switzerland		—		18,227,164		—		18,227,164
United Kingdom		14,987,257		—		—		14,987,257
Germany		12,705,936		—		—		12,705,936
Japan		—		11,723,835		—		11,723,835
United States		6,807,863		—		—		6,807,863
China		6,598,485		—		—		6,598,485
India		5,502,881		—		—		5,502,881
Canada		5,228,056		—		—		5,228,056
Other Countries		23,532,343		3,076,693		—		26,609,036
Mutual Funds		468,227		—		—		468,227
Total		$99,495,645		$33,027,692		$—		$132,523,337

For further information regarding security characteristics, see the Portfolio of Investments.

Foreign Currency Translation – Purchases and sales of foreign investments, income, and expenses are converted into U.S. dollars based upon currency exchange rates prevailing on the respective dates of such transactions or on the reporting date for foreign denominated receivables and payables. Gains and losses attributable to foreign currency exchange rates on sales of securities are recorded for financial statement purposes as net realized gains and losses on investments. Gains and losses attributable to foreign exchange rate movements on receivables, payables, income and expenses are recorded for financial statement purposes as foreign currency transaction gains and losses. That portion of both realized and unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed.

MFS International Growth Portfolio

Notes to Financial Statements – continued

the standard trade settlement period for such securities or within three business days. The loans are collateralized by cash and/or U.S. Treasury and federal agency obligations in an amount typically at least equal to the market value of the securities loaned. On loans collateralized by cash, the cash collateral is invested in a money market fund. The market value of the loaned securities is determined at the close of business of the fund and any additional required collateral is delivered to the fund on the next business day. The lending agent provides the fund with indemnification against Borrower default. In the event of Borrower default, the lending agent will, for the benefit of the fund, either purchase securities identical to those loaned or, when such purchase is commercially impracticable, pay the fund the market value of the loaned securities. In return, the lending agent assumes the fund’s rights to the related collateral. If the collateral value is less than the cost to purchase identical securities, the lending agent is responsible for the shortfall, but only to the extent that such shortfall is not due to a decline in collateral value resulting from collateral reinvestment for which the fund bears the risk of loss. A portion of the income generated upon investment of the collateral is remitted to the Borrowers, and the remainder is allocated between the fund and the lending agent. On loans collateralized by U.S. Treasury and/or federal agency obligations, a fee is received from the Borrower, and is allocated between the fund and the lending agent. Income from securities lending is separately reported in the Statement of Operations. The dividend and interest income earned on the securities loaned is accounted for in the same manner as other dividend and interest income. At December 31, 2018, there were no securities on loan or collateral outstanding.

Indemnifications – Under the 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 the fund. Additionally, in the normal course of business, the fund enters into agreements with service providers that may contain indemnification clauses. The 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. Dividends received in cash are recorded on theex-dividend date. Certain dividends from foreign securities will be recorded when the fund is informed of the dividend if such information is obtained subsequent to theex-dividend date. Dividend payments received in additional securities are recorded on theex-dividend date in an amount equal to the value of the security on such date.

Tax Matters and Distributions – The 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. The fund’s federal tax returns, when filed, will remain subject to examination by the Internal Revenue Service for a three year period. Management has analyzed the fund’s tax positions taken on federal and state tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability. Foreign taxes, if any, have been accrued by the fund in the accompanying financial statements in accordance with the applicable foreign tax law. Foreign income taxes may be withheld by certain countries in which the fund invests. Additionally, capital gains realized by the fund on securities issued in or by certain foreign countries may be subject to capital gains tax imposed by those countries.

Book/tax differences primarily relate to wash sale loss deferrals.

The tax character of distributions declared to shareholders for the last two fiscal years is as follows:


	Year ended		Year ended
	12/31/18		12/31/17
Ordinary income (including any short-term capital gains)		$2,194,070		$2,624,100
Long-term capital gains		12,375,077		3,061,101
Total distributions		$14,569,147		$5,685,201

MFS International Growth Portfolio

Notes to Financial Statements – continued

The federal tax cost and the tax basis components of distributable earnings were as follows:


As of 12/31/18

Cost of investments	$100,109,178
Gross appreciation	39,556,776
Gross depreciation	(7,142,617	)
Net unrealized appreciation (depreciation)	$32,414,159

Undistributed ordinary income	1,866,096
Undistributed long-term capital gain	15,187,168
Other temporary differences	(7,216	)

Multiple Classes of Shares of Beneficial Interest – The fund offers multiple classes of shares, which differ in their respective distribution and/or service fees. The fund’s 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. The fund’s distributions declared to shareholders as reported in the Statements of Changes in Net Assets are presented by class as follows:


	From net investment income				From net realized gain

	Year ended 12/31/18		Year ended 12/31/17		Year ended 12/31/18		Year ended 12/31/17
Initial Class		$1,206,626		$1,717,623		$10,382,224		$3,003,332
Service Class		248,418		309,391		2,731,879		654,855
Total		$1,455,044		$2,027,014		$13,114,103		$3,658,187

(3)

Transactions with Affiliates

Investment Adviser – The fund has an investment advisory agreement with MFS to provide overall investment management and related administrative services and facilities to the fund. The management fee is computed daily and paid monthly at the following annual rates based on the fund’s average daily net assets:


Up to $1 billion			0.90%
In excess of $1 billion and up to $2 billion			0.80%
In excess of $2 billion			0.70%

MFS has agreed in writing to reduce its management fee by a specified amount if certain MFS mutual fund assets exceed thresholds agreed to by MFS and the fund’s Board of Trustees. For the year ended December 31, 2018, this management fee reduction amounted to $14,360, which is included in the reduction of total expenses in the Statement of Operations. The management fee incurred for the year ended December 31, 2018 was equivalent to an annual effective rate of 0.89% of the fund’s average daily net assets.

Effective August 1, 2018, the investment adviser has agreed in writing to pay a portion of the fund’s total annual operating expenses, excluding interest, taxes, extraordinary expenses, brokerage and transaction costs, and investment-related expenses, such that total annual operating expenses do not exceed 0.88% of average daily net assets for the Initial Class shares and 1.13% of average daily net assets for the Service Class shares. This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until April 30, 2020. For the period August 1, 2018 through December 31, 2018, this reduction amounted to $101,006, which is included in the reduction of total expenses in the Statement of Operations.

Distributor – MFS Fund Distributors, Inc. (MFD), a wholly-owned subsidiary of MFS, is the distributor of shares of the fund. The Trustees have adopted a distribution plan for the Service Class shares pursuant to Rule12b-1 under the Investment Company Act of 1940.

Shareholder Servicing Agent – MFS Service Center, Inc. (MFSC), a wholly-owned subsidiary of MFS, receives a fee from the fund for its services as shareholder servicing agent. For the year ended December 31, 2018, the fee was $4,844, which equated to 0.0032% annually of the fund’s average daily net assets. MFSC also receives payment from the fund forout-of-pocket expenses paid by MFSC on behalf of the fund. For the year ended December 31, 2018, these costs amounted to $294.

MFS International Growth Portfolio

Notes to Financial Statements – continued

Other– This fund and certain other funds managed by MFS (the funds) have entered into a service agreement (the ISO Agreement) which provides for payment of fees solely by the funds to Tarantino LLC in return for the provision of services of an Independent Senior Officer (ISO) for the funds. Frank L. Tarantino serves as the ISO and is an officer of the funds and the sole member of Tarantino LLC. The funds can terminate the ISO Agreement with Tarantino LLC at any time under the terms of the ISO Agreement. For the year ended December 31, 2018, the fee paid by the fund under this agreement was $257 and is included in “Miscellaneous” expense in the Statement of Operations. MFS has agreed to bear all expenses associated with office space, other administrative support, and supplies provided to the ISO.

The fund is permitted to engage in purchase and sale transactions with funds and accounts for which MFS serves as investment adviser orsub-adviser (“cross-trades”) pursuant to a policy adopted by the Board of Trustees. This policy has been designed to ensure that cross-trades conducted by the fund comply with Rule17a-7 under the Investment Company Act of 1940. During the year ended December 31, 2018, the fund engaged in purchase and sale transactions pursuant to this policy, which amounted to $246,886 and $59,782, respectively. The sales transactions resulted in net realized gains (losses) of $16,890.

(4)

Portfolio Securities

For the year ended December 31, 2018, purchases and sales of investments, other than short-term obligations, aggregated $27,403,371 and $39,790,724, respectively.

(5)

Shares of Beneficial Interest

The 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:


	Year ended 12/31/18						Year ended 12/31/17
	Shares			Amount			Shares			Amount
Shares sold
Initial Class		214,354			$3,094,484			139,977			$1,972,502
Service Class		512,468			7,721,161			227,489			3,210,047
		726,822			$10,815,645			367,466			$5,182,549
Shares issued to shareholders in reinvestment of distributions
Initial Class		792,671			$11,588,850			331,528			$4,720,955
Service Class		205,680			2,980,297			68,241			964,246
		998,351			$14,569,147			399,769			$5,685,201
Shares reacquired
Initial Class		(1,142,698	)		$(17,486,023	)		(2,487,693	)		$(34,870,112	)
Service Class		(488,312	)		(7,094,405	)		(473,779	)		(6,604,499	)
		(1,631,010	)		$(24,580,428	)		(2,961,472	)		$(41,474,611	)
Net change
Initial Class		(135,673	)		$(2,802,689	)		(2,016,188	)		$(28,176,655	)
Service Class		229,836			3,607,053			(178,049	)		(2,430,206	)
		94,163			$804,364			(2,194,237	)		$(30,606,861	)

The fund is one of several mutual funds in which certain MFS funds may invest. The MFS funds do not invest in the underlying funds for the purpose of exercising management or control. At the end of the period, the MFS Moderate Allocation Portfolio, the MFS Growth Allocation Portfolio, and the MFS Conservative Allocation Portfolio were the owners of record of approximately 31%, 13%, and 7%, respectively, of the value of outstanding voting shares of the fund.

MFS International Growth Portfolio

Notes to Financial Statements – continued

(6)

Line of Credit

The fund and certain other funds managed by MFS participate in a $1.25 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 Overnight Bank Funding rate or daily one month LIBOR plus an agreed upon spread. A commitment fee, based on the average daily, unused portion of the committed line of credit, is allocated among the participating funds. In addition, the 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, at a rate equal to the Overnight Bank Funding rate plus an agreed upon spread. For the year ended December 31, 2018, the fund’s commitment fee and interest expense were $880 and $0, respectively, and are included in “Miscellaneous” expense in the Statement of Operations.

(7)

Investments in Affiliated Issuers


Affiliated Issuers		Beginning Shares/Par Amount		Acquisitions Shares/Par Amount		Dispositions Shares/Par Amount			Ending Shares/Par Amount

MFS Institutional Money Market Portfolio			956,706		24,059,576		(24,548,008	)		468,274

Affiliated Issuers	Realized Gain (Loss)	Change in Unrealized Appreciation/ Depreciation		Capital Gain Distributions		Dividend Income			Ending Value

MFS Institutional Money Market Portfolio	$(202)		$—		$—		$17,039			$468,227

MFS International Growth Portfolio

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees of MFS Variable Insurance Trust II and the Shareholders of MFS International Growth Portfolio:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities of MFS International Growth Portfolio (the “Fund”), including the portfolio of investments, as of December 31, 2018, the related statement 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of December 31, 2018, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

DELOITTE & TOUCHE LLP

Boston, Massachusetts

February 15, 2019

We have served as the auditor of one or more of the MFS investment companies since 1924.

MFS International Growth Portfolio

TRUSTEES AND OFFICERS – IDENTIFICATION AND BACKGROUND


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds overseen by the Trustee	Principal Occupations During the Past Five Years	Other Directorships During the Past Five Years (j)
INTERESTED TRUSTEES
Robert J. Manning (k) (age 55)	Trustee	February 2004	135	Massachusetts Financial Services Company, Executive Chairman (since January 2017); Director; Chairman of the Board; Chief Executive Officer (until 2015);Co-Chief Executive Officer(2015-2016)	N/A

Robin A. Stelmach (k) (age 57)	Trustee	January 2014	135	Massachusetts Financial Services Company, Vice Chair (since January 2017); Chief Operating Officer and Executive Vice President (until January 2017)	N/A

INDEPENDENT TRUSTEES
John P. Kavanaugh (age 64)	Trustee and Chair of Trustees	January 2009	135	Private investor	N/A

Steven E. Buller (age 67)	Trustee	February 2014	135	Financial Accounting Standards Advisory Council, Chairman(2014-2015); Public Company Accounting Oversight Board, Standing Advisory Group, Member (until 2014); BlackRock, Inc. (investment management), Managing Director (until 2014), BlackRock Finco UK (investment management), Director (until 2014)	N/A

John A. Caroselli (age 64)	Trustee	March 2017	135	JC Global Advisors, LLC (management consulting), President (since 2015); First Capital Corporation (commercial finance), Executive Vice President (until 2015)	N/A

Maureen R. Goldfarb (age 63)	Trustee	January 2009	135	Private investor	N/A

Michael Hegarty (age 74)	Trustee	December 2004	135	Private investor	Rouse Properties Inc., Director (until 2016); Capmark Financial Group Inc., Director (until 2015)

Peter D. Jones (age 63)	Trustee	January 2019	135	Franklin Templeton Distributors, Inc. (investment management), President (until 2015); Franklin Templeton Institutional, LLC (investment management), Chairman (until 2015)	N/A

James W. Kilman, Jr. (age 57)	Trustee	January 2019	135	KielStrand Capital LLC (family office and merchant bank), Chief Executive Officer (since 2016); Morgan Stanley & Co. (financial services), Vice Chairman of Investment Banking,Co-Head of Diversified Financials Coverage – Financial Institutions Investment Banking Group (until 2016)	alpha-En Corporation, Director (since 2016)

MFS International Growth Portfolio

Trustees and Officers – continued


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds overseen by the Trustee	Principal Occupations During the Past Five Years	Other Directorships During the Past Five Years (j)
Clarence Otis, Jr. (age 62)	Trustee	March 2017	135	Darden Restaurants, Inc., Chief Executive Officer (until 2014)	VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director; Federal Reserve Bank of Atlanta, Director (until 2015)

Maryanne L. Roepke (age 62)	Trustee	May 2014	135	American Century Investments (investment management), Senior Vice President and Chief Compliance Officer (until 2014)	N/A

Laurie J. Thomsen (age 61)	Trustee	March 2005	135	Private investor	The Travelers Companies, Director; Dycom Industries, Inc., Director (since 2015)


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds for which the Person is an Officer	Principal Occupations During the Past Five Years
OFFICERS
Christopher R. Bohane (k) (age 45)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Vice President and Assistant General Counsel

Kino Clark (k) (age 50)	Assistant Treasurer	January 2012	135	Massachusetts Financial Services Company, Vice President

John W. Clark, Jr. (k) (age 51)	Assistant Treasurer	April 2017	135	Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head – Treasurer’s Office (until February 2017)

Thomas H. Connors (k) (age 59)	Assistant Secretary and Assistant Clerk	September 2012	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Ethan D. Corey (k) (age 55)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel

David L. DiLorenzo (k) (age 50)	President	July 2005	135	Massachusetts Financial Services Company, Senior Vice President

Heidi W. Hardin (k) (age 51)	Secretary and Clerk	April 2017	135	Massachusetts Financial Services Company, Executive Vice President and General Counsel (since March 2017); Harris Associates (investment management), General Counsel (from September 2015 to January 2017); Janus Capital Management LLC (investment management), Senior Vice President and General Counsel (until September 2015)

Brian E. Langenfeld (k) (age 45)	Assistant Secretary and Assistant Clerk	June 2006	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Amanda S. Mooradian (k) (age 39)	Assistant Secretary and Assistant Clerk	September 2018	135	Massachusetts Financial Services Company, Assistant Vice President and Counsel

Susan A. Pereira (k) (age 48)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Kasey L. Phillips (k) (age 48)	Assistant Treasurer	September 2012	135	Massachusetts Financial Services Company, Vice President

Matthew A. Stowe (k) (age 44)	Assistant Secretary and Assistant Clerk	October 2014	135	Massachusetts Financial Services Company, Vice President and Assistant General Counsel

MFS International Growth Portfolio

Trustees and Officers – continued


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds for which the Person is an Officer	Principal Occupations During the Past Five Years
Frank L. Tarantino (age 74)	Independent Senior Officer	June 2004	135	Tarantino LLC (provider of compliance services), Principal

Richard S. Weitzel (k) (age 48)	Assistant Secretary and Assistant Clerk	October 2007	135	Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel

Martin J. Wolin (k) (age 51)	Chief Compliance Officer	July 2015	135	Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer (since July 2015); Mercer (financial service provider), Chief Risk and Compliance Officer, North America and Latin America (until June 2015)

James O. Yost (k) (age 58)	Treasurer	September 1990	135	Massachusetts Financial Services Company, Senior Vice President

(h)

(j)	Directorships or trusteeships of companies required to report to the Securities and Exchange Commission (i.e., “public companies”).

(k)

Messrs. Buller, Hegarty, Kilman and Otis and Ms. Roepke are members of the Trust’s Audit Committee.

Each of the Interested Trustees and certain Officers hold comparable officer positions with certain affiliates of MFS.

The Statement of Additional Information for a Fund includes further information about the Trustees and is available without charge upon request by calling1-800-225-2606.


Investment Adviser Massachusetts Financial Services Company 111 Huntington Avenue Boston, MA 02199-7618		Custodian State Street Bank and Trust Company 1 Lincoln Street Boston, MA 02111-2900
Distributor MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618		Independent Registered Public Accounting Firm Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116
Portfolio Manager(s) David Antonelli Matthew Barrett Kevin Dwan

MFS International Growth Portfolio

BOARD REVIEW OF INVESTMENT ADVISORY AGREEMENT

Based on information provided by Broadridge and MFS, the Trustees reviewed the Fund’s total return investment performance as well as the Broadridge performance universe over various time periods. The Trustees placed particular emphasis on the total return performance of the Fund’s Initial Class shares in comparison to the performance of funds in its Broadridge performance universe over the three-year period ended December 31, 2017, which the Trustees believed was a long enough period to reflect differing market conditions. The total return performance of the Fund’s Initial Class shares was in the 1st quintile relative to the other funds in the universe for this three-year period (the 1st quintile being the best performers and the 5th quintile being the worst performers). The total return performance of the Fund’s Initial Class shares was in the 1st quintile for each of theone- and five-year periods ended December 31, 2017 relative to the Broadridge performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.

MFS International Growth Portfolio

Board Review of Investment Advisory Agreement – continued

In assessing the reasonableness of the Fund’s advisory fee, the Trustees considered, among other information, the Fund’s advisory fee and the total expense ratio of the Fund’s Initial Class shares as a percentage of average daily net assets and the advisory fee and total expense ratios of peer groups of funds based on information provided by Broadridge. The Trustees considered that, according to the data provided by Broadridge (which takes into account any fee reductions or expense limitations that were in effect during the Fund’s last fiscal year), the Fund’s effective advisory fee rate and total expense ratio were each higher than the Broadridge expense group median. The Trustees also noted that MFS has agreed to implement an expense limitation for the Fund effective August 1, 2018, which may not be changed without the Trustee’s approval.

The Trustees also considered whether the Fund may benefit from any economies of scale in the management of the Fund in the event of growth in assets of the Fund and/or growth in assets of the MFS Funds as a whole. They noted that the Fund’s advisory fee rate schedule is subject to contractual breakpoints that reduce the Fund’s advisory fee rate on average daily net assets over $1 billion and $2 billion. The Trustees also noted that MFS has agreed in writing to waive a portion of the management fees of certain MFS Funds, including the Fund, if the total combined assets of certain funds within the MFS Funds’ complex increase above agreed upon thresholds (the “group fee waiver”), enabling the Fund’s shareholders to share in the benefits from any economies of scale at the complex level. The group fee waiver is reviewed and renewed annually between the Board and MFS. The Trustees concluded that the breakpoints and the group fee waiver were sufficient to allow the Fund to benefit from economies of scale as its assets and overall complex assets grow.

MFS International Growth Portfolio

PROXY VOTING POLICIES AND INFORMATION

QUARTERLY PORTFOLIO DISCLOSURE

FURTHER INFORMATION

INFORMATION ABOUT FUND CONTRACTS AND LEGAL CLAIMS

FEDERAL TAX INFORMATION (unaudited)

The following information is provided pursuant to provisions of the Internal Revenue Code.

The fund designates $13,613,000 as capital gain dividends paid during the fiscal year.

Income derived from foreign sources was $3,194,813. The fund intends to pass through foreign tax credits of $270,188 for the fiscal year.

rev. 3/16



FACTS		WHAT DOES MFS DO WITH YOUR PERSONAL INFORMATION?


Why?		Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.

What?

The types of personal information we collect and share depend on the product or service you have with us. This information can include:

• Social Security number and account balances

• Account transactions and transaction history

• Checking account information and wire transfer instructions

When you areno longer our customer, we continue to share your information as described in this notice.


How?		All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons MFS chooses to share; and whether you can limit this sharing.


Reasons we can share your personal information	Does MFS share?	Can you limit this sharing?
For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes – to offer our products and services to you	No	We don’t share
For joint marketing with other financial companies	No	We don’t share
For our affiliates’ everyday business purposes – information about your transactions and experiences	No	We don’t share
For our affiliates’ everyday business purposes – information about your creditworthiness	No	We don’t share
For nonaffiliates to market to you	No	We don’t share



Questions?		Call800-225-2606 or go tomfs.com.


Page 2


Who we are
Who is providing this notice?		MFS Funds, MFS Investment Management, MFS Institutional Advisors, Inc., and MFS Heritage Trust Company.


What we do
How does MFS protect my personal information?		To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include procedural, electronic, and physical safeguards for the protection of the personal information we collect about you.
How does MFS collect my personal information?		We collect your personal information, for example, when you • open an account or provide account information • direct us to buy securities or direct us to sell your securities • make a wire transfer We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can’t I limit all sharing?		Federal law gives you the right to limit only • sharing for affiliates’ everyday business purposes – information about your creditworthiness • affiliates from using your information to market to you • sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing.


Definitions
Affiliates		Companies related by common ownership or control. They can be financial and nonfinancial companies. • MFS does not share personal information with affiliates, except for everyday business purposes as described on page one of this notice.
Nonaffiliates		Companies not related by common ownership or control. They can be financial and nonfinancial companies. • MFS does not share with nonaffiliates so they can market to you.
Joint marketing		A formal agreement between nonaffiliated financial companies that together market financial products or services to you. • MFS doesn’t jointly market.


Other important information
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Annual Report

December 31, 2018

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MFS^® International Value Portfolio

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MFS^® Variable Insurance Trust II

FCG-ANN

MFS® International Value Portfolio

CONTENTS

The report is prepared for the general information of contract owners. 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 OR CREDIT UNION GUARANTEE• NOT A DEPOSIT• NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY OR NCUA/NCUSIF

MFS International Value Portfolio

LETTER FROM THE EXECUTIVE CHAIRMAN

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Dear Contract Owners:

Respectfully,

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Robert J. Manning

Executive Chairman

MFS Investment Management

February 15, 2019

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

MFS International Value Portfolio

PORTFOLIO COMPOSITION

Portfolio structure

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Top ten holdings
Nestle S.A.			4.6%
Givaudan S.A.			3.2%
Henkel AG & Co. KGaA			2.8%
Pernod Ricard S.A.			2.8%
Cadence Design Systems, Inc.			2.5%
Diageo PLC			2.5%
Reckitt Benckiser Group PLC			2.4%
Kao Corp.			2.3%
Deutsche Wohnen SE			2.3%
Taiwan Semiconductor Manufacturing Co. Ltd., ADR			2.2%

GICS equity sectors
Consumer Staples			31.1%
Information Technology			21.4%
Industrials			17.6%
Financials			5.9%
Materials			5.6%
Real Estate			5.4%
Health Care			4.9%
Consumer Discretionary			3.2%
Communication Services			1.4%
Energy			0.4%


Issuer country weightings (x)
Japan			20.8%
United Kingdom			15.1%
United States			13.6%
Germany			13.1%
Switzerland			12.4%
France			11.5%
Taiwan			2.2%
Spain			2.2%
Ireland			1.7%
Other Countries			7.4%

Currency exposure weightings (y)
Euro			31.0%
United States Dollar			18.3%
Japanese Yen			16.6%
British Pound Sterling			14.4%
Swiss Franc			12.4%
Taiwan Dollar			2.2%
Canadian Dollar			1.6%
Swedish Krona			1.0%
Australian Dollar			0.9%
Other Currencies			1.6%

(x)	Represents the portfolio’s exposure to issuer countries as a percentage of a portfolio’s net assets. For purposes of this presentation, United States includes Cash & Cash Equivalents and Other.

(y)	Represents the portfolio’s exposure to a particular currency as a percentage of a portfolio’s net assets. For purposes of this presentation, United States Dollar includes Cash & Cash Equivalents and Other.

Other includes equivalent exposure from currency derivatives and/or any offsets to derivative positions.

Percentages are based on net assets as of December 31, 2018.

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

MFS International Value Portfolio

MANAGEMENT REVIEW

Summary of Results

For the twelve months ended December 31, 2018, Initial Class shares of the MFS International Value Portfolio (“fund”) provided a total return of –9.49%, while Service Class shares of the fund provided a total return of –9.72%. These compare with a return of –14.78% over the same period for the fund’s benchmark, the MSCI EAFE Value Index (net div).

Market Environment

Contributors to Performance

Security selection in both theconsumer staples andinformation technology sectors lifted performance relative to the MSCE EAFE Value Index. Within theconsumer staples sector, the fund’s holdings of household and industrial products manufacturer Kao (b) (Japan), wine and alcoholic beverage producer Pernod Ricard (b) (France), premium drinks distributer Diageo (b) (United Kingdom) and beverage manufacturer ITO EN (b) (Japan), as well as the fund’s overweight position in global food company Nestle (Switzerland), boosted relative results. The share price of Kao rose during the reporting period, as cost controls and strong sales in the company’s consumer product and beauty segments helped drive solid earnings results. Within theinformation technology sector, the fund’s holdings of integrated circuits and electronic devices developer Cadence Design Systems (b) aided relative returns as the stock price benefited from growth in both the company’s functional verification and semiconductor segments.

An underweight position in the poor-performingfinancials sector further benefited relative performance. There were no individual securities within this sector that were among the fund’s top relative contributors during the reporting period.

Elsewhere, the fund’s positions in flavors and fragrances company Givaudan (b) (Switzerland) and medical electronic equipment manufacturer Nihon Kohden (b) (Japan), and an overweight position in real estate company Deutsche Wohnen (Germany), also helped relative returns.

The fund’s cash and/or cash equivalents position during the period was also a contributor to relative performance. Under normal market conditions, the fund strives to be fully invested and generally holds cash to buy new holdings and to provide liquidity. In a period when equity markets declined, as measured by the fund’s benchmark, holding cash helped performance versus the benchmark, which has no cash position.

During the reporting period, the fund’s relative currency exposure, resulting primarily from differences between the fund’s and the benchmark’s exposures to holdings of securities denominated in foreign currencies, was a positive factor benefiting relative performance. All of MFS’ investment decisions are driven by the fundamentals of each individual opportunity and as such, it is common for our portfolios to have different currency exposures than the benchmark.

MFS International Value Portfolio

Management Review – continued

Detractors from Performance

An underweight position and security selection in both theenergy andhealth care sectors were factors that hurt performance relative to the MSCE EAFE Value Index. Within theenergy sector, not holding shares of global energy and petrochemicals company Royal Dutch Shell (United Kingdom) and integrated oil company Total (France) hurt relative returns. Although shares of Royal Dutch Shell traded lower over the reporting period due to higher corporate expenses and a pull back in global energy markets, the stock still outperformed the benchmark, which negatively impacted the fund’s relative performance. Within thehealth care sector, not holding pharmaceutical companies Novartis (Switzerland), GlaxoSmithKline (United Kingdom) and Sanofi (France), as well as holding shares of dental and oral health products manufacturer Dentsply Sirona (b), weighed on relative returns. Dentsply Sirona’s stock price declined over the reporting period, most notably in August, as the company reduced its full year outlook, took a large impairment charge and announced a restructuring program.

Not holding a position in theutilities sector also weakened relative results. There were no individual stocks within this sector that were among the fund’s top relative detractors during the reporting period.

Stocks in other sectors that dampened relative returns included holding shares of mechanical engineering firm GEA Group (b) (Germany), automation equipment manufacturer OMRON (b) (Japan), wiring devices and cable systems manufacturer Legrand (b) (France) and semiconductor and system solutions provider Infineon Technologies (b) (Germany).

Respectfully,

Portfolio Manager(s)

Pablo De La Mata and Benjamin Stone

(b)	Security is not a benchmark constituent.

MFS International Value Portfolio

PERFORMANCE SUMMARY THROUGH 12/31/18

Growth of a Hypothetical $10,000 Investment

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Total Returns through 12/31/18

Average annual total returns


	Share Class	Class Inception Date	1-yr	5-yr	10-yr
	Initial Class	10/02/95	(9.49)%	5.29%	9.99%
	Service Class	8/24/01	(9.72)%	5.03%	9.72%

Comparative benchmark(s)
	MSCI EAFE Value Index (net div) (f)		(14.78)%	(0.61)%	5.50%

(f)	Source: FactSet Research Systems Inc.

Benchmark Definition(s)

MSCI EAFE (Europe, Australasia, Far East) Value Index (net div) – a market capitalization-weighted index that is designed to measure equity market performance for value securities in the developed markets, excluding the U.S. and Canada.

It is not possible to invest directly in an index.

Notes to Performance Summary

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

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

MFS International Value Portfolio

EXPENSE TABLE

Fund Expenses Borne by the Contract Holders during the Period,

July 1, 2018 through December 31, 2018

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period July 1, 2018 through December 31, 2018.

Actual Expenses

Hypothetical Example for Comparison Purposes


Share Class		Annualized Expense Ratio		Beginning Account Value 7/01/18		Ending Account Value 12/31/18		Expenses Paid During Period (p) 7/01/18-12/31/18
Initial Class	Actual		0.91%		$1,000.00		$910.27		$4.38
Initial Class	Hypothetical (h)		0.91%		$1,000.00		$1,020.62		$4.63
Service Class	Actual		1.15%		$1,000.00		$909.31		$5.53
Service Class	Hypothetical (h)		1.15%		$1,000.00		$1,019.41		$5.85

(h)	5% class return per year before expenses.

(p)	“Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect theone-half year period).

MFS International Value Portfolio

PORTFOLIO OF INVESTMENTS – 12/31/18

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



Issuer	Shares/Par		Value ($)
COMMON STOCKS – 94.1%
Airlines – 0.5%
Ryanair Holdings PLC (a)		83,232	$	5,937,771

Alcoholic Beverages – 6.8%
Diageo PLC		784,763	$	27,957,232
Heineken N.V.		205,171		18,147,759
Pernod Ricard S.A.		193,607		31,787,545

			$	77,892,536

Apparel Manufacturers – 0.9%
Compagnie Financiere Richemont S.A.		108,875	$	6,997,117
LVMH Moet Hennessy Louis Vuitton SE		11,044		3,267,175

			$	10,264,292

Automotive – 0.3%
USS Co. Ltd.		178,000	$	2,970,788

Brokerage & Asset Managers – 0.4%
Daiwa Securities Group, Inc.		480,300	$	2,449,001
IG Group Holdings PLC		257,441		1,870,365

			$	4,319,366

Business Services – 9.8%
Brenntag AG		145,890	$	6,301,684
Bunzl PLC		88,018		2,657,727
Compass Group PLC		1,069,753		22,497,864
Experian PLC		418,479		10,161,141
Intertek Group PLC		183,351		11,217,559
Nomura Research Institute Ltd.		283,100		10,406,701
Rentokil Initial PLC		610,000		2,621,750
Secom Co. Ltd.		185,200		15,290,730
SGS S.A.		6,973		15,710,196
Sohgo Security Services Co. Ltd.		120,900		5,692,053
Thomson Reuters Corp.		183,367		8,855,396

			$	111,412,801

Chemicals – 3.2%
Givaudan S.A.		15,910	$	36,901,968

Computer Software – 7.5%
ANSYS, Inc. (a)		105,042	$	15,014,704
Cadence Design Systems, Inc. (a)		654,979		28,478,487
Check Point Software Technologies Ltd. (a)		65,080		6,680,462
Dassault Systems S.A.		134,269		15,953,069
OBIC Co. Ltd.		142,700		10,920,951
SAP AG		73,726		7,343,111
Wisetech Global Ltd.		103,294		1,229,561

			$	85,620,345

Computer Software – Systems – 2.3%
Amadeus IT Group S.A.		365,710	$	25,492,697
Descartes Systems Group, Inc. (a)		40,912		1,079,739

			$	26,572,436



Issuer	Shares/Par		Value ($)
COMMON STOCKS – continued
Construction – 0.4%
Geberit AG		11,651	$	4,539,210

Consumer Products – 9.5%
Colgate-Palmolive Co.		400,646	$	23,846,450
Kao Corp.		363,100		26,769,877
KOSE Corp.		22,400		3,552,507
L’Oréal		86,996		20,054,739
Reckitt Benckiser Group PLC		361,254		27,687,115
ROHTO Pharmaceutical Co. Ltd.		259,200		6,998,272

			$	108,908,960

Containers – 0.8%
Brambles Ltd.		1,255,899	$	8,978,612

Electrical Equipment – 5.9%
IMI PLC		869,953	$	10,467,467
Legrand S.A.		298,004		16,832,893
OMRON Corp.		260,100		9,374,810
Schneider Electric S.A.		287,604		19,679,065
Spectris PLC		227,113		6,597,208
Yokogawa Electric Corp.		255,500		4,382,508

			$	67,333,951

Electronics – 8.9%
Analog Devices, Inc.		226,619	$	19,450,709
DISCO Corp.		15,400		1,777,395
Halma PLC		582,994		10,135,666
Hirose Electric Co. Ltd.		102,500		10,144,286
Infineon Technologies AG		682,575		13,580,473
NVIDIA Corp.		6,663		889,510
Samsung Electronics Co. Ltd.		240,455		8,319,905
Taiwan Semiconductor Manufacturing Co. Ltd., ADR		691,416		25,520,165
Texas Instruments, Inc.		118,771		11,223,859

			$	101,041,968

Engineering – Construction – 0.2%
Wartsila Corp.		135,671	$	2,153,094

Food & Beverages – 10.7%
Chocoladefabriken Lindt & Sprungli AG		179	$	1,111,948
Danone S.A.		336,246		23,696,958
Ezaki Glico Co. Ltd.		23,600		1,192,023
ITO EN Ltd.		328,400		14,756,352
Kerry Group PLC		137,369		13,614,277
Nestle S.A.		645,569		52,485,307
Nissan Foods Holdings Co. Ltd.		50,100		3,143,879
Toyo Suisan Kaisha Ltd.		361,300		12,608,632

			$	122,609,376

Insurance – 1.8%
Fairfax Financial Holdings Ltd.		17,959	$	7,905,801
Hiscox Ltd.		377,441		7,798,408
Jardine Lloyd Thompson Group PLC		189,914		4,579,857

			$	20,284,066

MFS International Value Portfolio

Portfolio of Investments – continued



Issuer	Shares/Par		Value ($)
COMMON STOCKS – continued
Machinery & Tools – 4.1%
GEA Group AG		301,268	$	7,766,498
Misumi Group, Inc.		211,100		4,405,627
Nordson Corp.		90,816		10,838,890
Schindler Holding AG		23,545		4,677,738
SMC Corp.		22,700		6,780,495
Spirax Sarco Engineering PLC		157,710		12,543,469

			$	47,012,717

Major Banks – 1.9%
Svenska Handelsbanken AB, “A”		1,046,027	$	11,587,568
UBS AG		804,160		10,038,298

			$	21,625,866

Medical Equipment – 2.5%
Dentsply Sirona, Inc.		143,972	$	5,357,198
Nihon Kohden Corp.		374,600		12,100,870
Terumo Corp.		199,500		11,207,796

			$	28,665,864

Oil Services – 0.4%
Core Laboratories N.V.		67,631	$	4,034,865

Other Banks & Diversified Financials – 1.8%
Chiba Bank Ltd.		527,100	$	2,922,806
DnB NOR A.S.A.		256,357		4,111,951
Hachijuni Bank Ltd.		517,200		2,110,251
Julius Baer Group Ltd.		73,227		2,616,677
Jyske Bank A.S.		65,521		2,368,271
Mebuki Financial Group, Inc.		868,600		2,292,918
North Pacific Bank Ltd.		773,700		2,059,731
Sydbank A.S.		86,878		2,067,794

			$	20,550,399

Pharmaceuticals – 3.0%
Bayer AG		71,349	$	4,950,664
Kobayashi Pharmaceutical Co. Ltd.		201,900		13,827,339
Roche Holding AG		10,528		2,603,303
Santen Pharmaceutical Co. Ltd.		875,900		12,534,980

			$	33,916,286

Printing & Publishing – 0.7%
RELX Group PLC		366,186	$	7,539,448



Issuer	Shares/Par		Value ($)
COMMON STOCKS – continued
Real Estate – 5.4%
Deutsche Wohnen SE		561,760	$	25,745,453
LEG Immobilien AG		76,264		7,962,016
TAG Immobilien AG		291,735		6,655,023
Vonovia SE		464,380		21,064,383

			$	61,426,875

Specialty Chemicals – 2.3%
Croda International PLC		48,048	$	2,869,186
Kansai Paint Co. Ltd.		234,700		4,504,396
Sika AG		32,001		4,067,116
Symrise AG		205,415		15,180,344

			$	26,621,042

Specialty Stores – 0.1%
Esprit Holdings Ltd. (a)		3,717,120	$	740,528

Telecommunications – Wireless – 1.4%
KDDI Corp.		658,600	$	15,694,488

Tobacco – 0.6%
British American Tobacco PLC		86,978	$	2,771,554
Japan Tobacco, Inc.		184,600		4,379,619

			$	7,151,173

Total Common Stocks (Identified Cost, $950,445,537)			$	1,072,721,091


PREFERRED STOCKS – 2.8%
Consumer Products – 2.8%
Henkel AG & Co. KGaA (Identified Cost, $36,462,065)		296,052	$	32,359,821


INVESTMENT COMPANIES (h) – 3.0%
Money Market Funds – 3.0%
MFS Institutional Money Market Portfolio, 2.4% (v) (Identified Cost, $34,693,877)		34,699,854	$	34,696,385

OTHER ASSETS, LESS LIABILITIES – 0.1%				744,738

NET ASSETS – 100.0%			$	1,140,522,035

(a)

Non-income producing security.

(h)

(v)

The following abbreviations are used in this report and are defined:

ADR

American Depositary Receipt

PLC

Public Limited Company

Abbreviations indicate amounts shown in currencies other than the U.S. dollar. All amounts are stated in U.S. dollars unless otherwise indicated. A list of abbreviations is shown below:

JPY

Japanese Yen

MFS International Value Portfolio

Portfolio of Investments – continued

Derivative Contracts at 12/31/18

Forward Foreign Currency Exchange Contracts

Currency Purchased

Currency Sold

Counterparty

Settlement Date

Unrealized
Appreciation
(Depreciation)

Asset Derivatives

JPY

3,458,260,000

USD

30,969,955

BNP Paribas S.A.

2/22/2019

$696,903

USD

3,580,098

JPY

390,183,000

Citibank N.A.

2/22/2019

7,240

USD

37,990,084

JPY

4,135,866,500

Goldman Sachs International

2/22/2019

118,468

USD

37,982,932

JPY

4,135,866,500

State Street Bank Corp.

2/22/2019

111,316

$933,927

See Notes to Financial Statements

MFS International Value Portfolio

FINANCIAL STATEMENTS ^| STATEMENT OF ASSETS AND LIABILITIES

This statement represents your fund’s balance sheet, which details the assets and liabilities comprising the total value of the fund.


At 12/31/18

Assets
Investments in unaffiliated issuers, at value (identified cost, $986,907,602)			$1,105,080,912
Investments in affiliated issuers, at value (identified cost, $34,693,877)			34,696,385
Foreign currency, at value (identified cost, $26)			26
Receivables for
Forward foreign currency exchange contracts			933,927
Investments sold			1,617
Fund shares sold			448,518
Interest and dividends			3,398,688
Other assets			7,245
Total assets			$1,144,567,318

Liabilities
Payables for
Fund shares reacquired			$3,677,350
Payable to affiliates
Investment adviser			110,727
Shareholder servicing costs			249
Distribution and/or service fees			23,375
Payable for independent Trustees’ compensation			129
Accrued expenses and other liabilities			233,453
Total liabilities			$4,045,283
Net assets			$1,140,522,035

Net assets consist of
Paid-in capital			$969,908,244
Total distributable earnings (loss)			170,613,791
Net assets			$1,140,522,035
Shares of beneficial interest outstanding			46,176,524



	Net assets		Shares outstanding		Net asset value per share
Initial Class		$282,243,818		11,282,418		$25.02
Service Class		858,278,217		34,894,106		24.60

See Notes to Financial Statements

MFS International Value Portfolio

FINANCIAL STATEMENTS ^| STATEMENT OF OPERATIONS

This statement describes how much your fund earned in investment income and accrued in expenses. It also describes any gains and/or losses generated by fund operations.


Year ended 12/31/18

Net investment income (loss)
Income
Dividends	$42,016,698
Dividends from affiliated issuers	1,121,219
Income on securities loaned	269,445
Other	417
Interest	414
Foreign taxes withheld	(3,729,694	)
Total investment income	$39,678,499
Expenses
Management fee	$16,196,738
Distribution and/or service fees	3,986,359
Shareholder servicing costs	46,219
Administrative services fee	281,129
Independent Trustees’ compensation	32,693
Custodian fee	291,483
Shareholder communications	123,832
Audit and tax fees	61,093
Legal fees	18,866
Miscellaneous	59,578
Total expenses	$21,097,990
Reduction of expenses by investment adviser	(180,594	)
Net expenses	$20,917,396
Net investment income (loss)	$18,761,103

Realized and unrealized gain (loss)
Realized gain (loss) (identified cost basis)
Unaffiliated issuers	$328,046,604
Affiliated issuers	1,155
Forward foreign currency exchange contracts	3,648,333
Foreign currency	(175,739	)
Net realized gain (loss)	$331,520,353
Change in unrealized appreciation or depreciation
Unaffiliated issuers	$(516,742,275	)
Affiliated issuers	2,508
Forward foreign currency exchange contracts	(2,388,452	)
Translation of assets and liabilities in foreign currencies	(76,120	)
Net unrealized gain (loss)	$(519,204,339	)
Net realized and unrealized gain (loss)	$(187,683,986	)
Change in net assets from operations	$(168,922,883	)

See Notes to Financial Statements

MFS International Value Portfolio

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
	12/31/18			12/31/17
Change in net assets

From operations
Net investment income (loss)		$18,761,103			$16,554,284
Net realized gain (loss)		331,520,353			31,084,074
Net unrealized gain (loss)		(519,204,339	)		371,334,590
Change in net assets from operations		$(168,922,883	)		$418,972,948
Total distributions to shareholders (a)		$(42,976,985	)		$(25,981,495	)
Change in net assets from fund share transactions		$(693,239,677	)		$140,743,630
Total change in net assets		$(905,139,545	)		$533,735,083

Net assets
At beginning of period		2,045,661,580			1,511,926,497
At end of period (b)		$1,140,522,035			$2,045,661,580

(a)	Distributions from net investment income and from net realized gain are no longer required to be separately disclosed. See Note 2. For the year ended December 31, 2017, distributions from net investment income and from net realized gain were $24,251,192 and $1,730,303, respectively.

(b)	Parenthetical disclosure of undistributed net investment income is no longer required. See Note 2. For the year ended December 31, 2017, end of period net assets included undistributed net investment income of $16,090,375.

See Notes to Financial Statements

MFS International Value Portfolio

FINANCIAL STATEMENTS ^| FINANCIAL HIGHLIGHTS


Initial Class	Year ended

	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14

Net asset value, beginning of period		$28.25			$22.57			$22.46			$21.73			$21.86

Income (loss) from investment operations
Net investment income (loss) (d)		$0.30			$0.29			$0.32	(c)		$0.30			$0.57
Net realized and unrealized gain (loss)		(2.91	)		5.80			0.64			1.11			(0.27	)
Total from investment operations		$(2.61	)		$6.09			$0.96			$1.41			$0.30

Less distributions declared to shareholders
From net investment income		$(0.31	)		$(0.39	)		$(0.32	)		$(0.45	)		$(0.43	)
From net realized gain		(0.31	)		(0.02	)		(0.53	)		(0.23	)		—
Total distributions declared to shareholders		$(0.62	)		$(0.41	)		$(0.85	)		$(0.68	)		$(0.43	)
Net asset value, end of period (x)		$25.02			$28.25			$22.57			$22.46			$21.73
Total return (%) (k)(r)(s)(x)		(9.49	)		27.14			4.05	(c)		6.65			1.34

Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)		0.91			0.91			0.91	(c)		0.93			0.95
Expenses after expense reductions (f)		0.90			0.90			0.89	(c)		0.91			0.94
Net investment income (loss)		1.08			1.13			1.41	(c)		1.33			2.58
Portfolio turnover		16			10			17			24			22
Net assets at end of period (000 omitted)		$282,244			$317,415			$238,192			$230,349			$218,258

Service Class	Year ended

	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14

Net asset value, beginning of period		$27.80			$22.23			$22.13			$21.44			$21.58

Income (loss) from investment operations
Net investment income (loss) (d)		$0.27			$0.23			$0.26	(c)		$0.25			$0.49
Net realized and unrealized gain (loss)		(2.91	)		5.70			0.63			1.07			(0.24	)
Total from investment operations		$(2.64	)		$5.93			$0.89			$1.32			$0.25

Less distributions declared to shareholders
From net investment income		$(0.25	)		$(0.34	)		$(0.26	)		$(0.40	)		$(0.39	)
From net realized gain		(0.31	)		(0.02	)		(0.53	)		(0.23	)		—
Total distributions declared to shareholders		$(0.56	)		$(0.36	)		$(0.79	)		$(0.63	)		$(0.39	)
Net asset value, end of period (x)		$24.60			$27.80			$22.23			$22.13			$21.44
Total return (%) (k)(r)(s)(x)		(9.72	)		26.82			3.84	(c)		6.32			1.13

Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)		1.15			1.16			1.16	(c)		1.18			1.20
Expenses after expense reductions (f)		1.14			1.15			1.14	(c)		1.16			1.19
Net investment income (loss)		0.97			0.89			1.17	(c)		1.10			2.25
Portfolio turnover		16			10			17			24			22
Net assets at end of period (000 omitted)		$858,278			$1,728,247			$1,273,735			$1,124,133			$984,842

See Notes to Financial Statements

MFS International Value Portfolio

Financial Highlights – continued

(c)	Amount reflects aone-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher.

(d)	Per share data is based on average shares outstanding.

(f)	Ratios do not reflect reductions from fees paid indirectly, if applicable.

(k)	The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown.

(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.

(x)	The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes.

See Notes to Financial Statements

MFS International Value Portfolio

NOTES TO FINANCIAL STATEMENTS

(1)

Business and Organization

MFS International Value Portfolio (the fund) is a diversified series of MFS Variable Insurance Trust II (the trust). The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as anopen-end management investment company. The shareholders of each series of the trust are separate accounts of insurance companies, which offer variable annuity and/or life insurance products, and qualified retirement and pension plans.

(2)

Significant Accounting Policies

In August 2018, the FASB issued Accounting Standards Update2018-13, Fair Value Measurement (Topic 820) – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (“ASU2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements.ASU 2018-13 would be effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years; however, management has elected to early adopt ASU2018-13 effective with the current reporting period. The impact of the fund’s adoption was limited to changes in the fund’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy.

Balance Sheet Offsetting – The fund’s accounting policy with respect to balance sheet offsetting is that, absent an event of default by the counterparty or a termination of the agreement, the International Swaps and Derivatives Association (ISDA) Master Agreement, or similar agreement, does not result in an offset of reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities across transactions between the fund and the applicable counterparty. The fund’s right to setoff may be restricted or prohibited by the bankruptcy or insolvency laws of the particular jurisdiction to which a specific master netting agreement counterparty is subject. Balance sheet offsetting disclosures, to the extent applicable to the fund, have been included in the fund’s Significant Accounting Policies note under the captions for each of the fund’sin-scope financial instruments and transactions.

Investment Valuations – Equity securities, including restricted equity securities, are generally valued at the last sale or official closing price on their primary market or exchange as provided by a third-party pricing service. Equity securities, for which there were no sales reported that day, are generally valued at the last quoted daily bid quotation on their primary market or exchange as provided by a third-party pricing service. Short-term instruments with a maturity at issuance of 60 days or less may be valued at amortized cost, which approximates market value. Forward foreign currency exchange 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.Open-end investment companies are generally valued at net asset value per share. 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. In determining values, third-party pricing services can utilize both transaction data and market information such as 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.

MFS International Value Portfolio

Notes to Financial Statements – continued

good faith by the adviser in accordance with such procedures under the oversight of the Board of Trustees. Under the 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 effect 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 the 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 the fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the fund determines its net asset value per share.

Various inputs are used in determining the value of the fund’s assets or liabilities. These inputs are categorized into three broad levels. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fund’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted 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, such as forward foreign currency exchange contracts. The following is a summary of the levels used as of December 31, 2018 in valuing the fund’s assets or liabilities:


Financial Instruments	Level 1		Level 2		Level 3		Total
Equity Securities:
Japan		$14,756,352		$222,495,728		$—		$237,252,080
United Kingdom		171,973,017		—		—		171,973,017
Germany		148,909,471		—		—		148,909,471
Switzerland		—		141,748,879		—		141,748,879
France		131,271,443		—		—		131,271,443
United States		119,134,672		—		—		119,134,672
Taiwan		25,520,165		—		—		25,520,165
Spain		25,492,697		—		—		25,492,697
Ireland		19,552,048		—		—		19,552,048
Other Countries		55,685,652		28,540,788		—		84,226,440
Mutual Funds		34,696,385		—		—		34,696,385
Total		$746,991,902		$392,785,395		$—		$1,139,777,297

Other Financial Instruments
Forward Foreign Currency
Exchange Contracts – Assets		$—		$933,927		$—		$933,927

For further information regarding security characteristics, see the Portfolio of Investments.

MFS International Value Portfolio

Notes to Financial Statements – continued

Derivatives – The fund uses derivatives primarily to increase or decrease exposure to a particular market or segment of the market, or security, to increase or decrease interest rate or currency exposure, or as alternatives to direct investments. Derivatives are used for hedging ornon-hedging purposes. While hedging can reduce or eliminate losses, it can also reduce or eliminate gains. When the fund uses derivatives as an investment to increase market exposure, or for hedging purposes, gains and losses from derivative instruments may be substantially greater than the derivative’s original cost.

The derivative instruments used by the fund during the period were forward foreign currency exchange contracts. Depending on the type of derivative, the fund may exit a derivative position by entering into an offsetting transaction with a counterparty or exchange, negotiating an agreement with the derivative counterparty, or novating the position to a third party. The fund’s period end derivatives, as presented in the Portfolio of Investments and the associated Derivative Contract tables, generally are indicative of the volume of its derivative activity during the period.


Risk	Forward Foreign Currency Exchange Contracts
Foreign Exchange		$3,648,333


Risk	Forward Foreign Currency Exchange Contracts
Foreign Exchange		$(2,388,452	)

MFS International Value Portfolio

Notes to Financial Statements – continued

Forward Foreign Currency Exchange Contracts – The fund entered into forward foreign currency exchange contracts for the purchase or sale of a specific foreign currency at a fixed price on a future date. These contracts may be used to hedge the fund’s currency risk or fornon-hedging purposes. For hedging purposes, the fund may enter into contracts to deliver or receive foreign currency that the fund will receive from or use in its normal investment activities. The fund may also use contracts to hedge against declines in the value of foreign currency denominated securities due to unfavorable exchange rate movements. Fornon-hedging purposes, the fund may enter into contracts with the intent of changing the relative exposure of the fund’s portfolio of securities to different currencies to take advantage of anticipated exchange rate changes.

Security Loans – Under its Securities Lending Agency Agreement with the fund, State Street Bank and Trust Company, as lending agent, loans the securities of the fund to certain qualified institutions (the “Borrowers”) approved by the fund. Security loans can be terminated at the discretion of either the lending agent or the fund and the related securities must be returned within the earlier of the standard trade settlement period for such securities or within three business days. The loans are collateralized by cash and/or U.S. Treasury and federal agency obligations in an amount typically at least equal to the market value of the securities loaned. On loans collateralized by cash, the cash collateral is invested in a money market fund. The market value of the loaned securities is determined at the close of business of the fund and any additional required collateral is delivered to the fund on the next business day. The lending agent provides the fund with indemnification against Borrower default. In the event of Borrower default, the lending agent will, for the benefit of the fund, either purchase securities identical to those loaned or, when such purchase is commercially impracticable, pay the fund the market value of the loaned securities. In return, the lending agent assumes the fund’s rights to the related collateral. If the collateral value is less than the cost to purchase identical securities, the lending agent is responsible for the shortfall, but only to the extent that such shortfall is not due to a decline in collateral value resulting from collateral reinvestment for which the fund bears the risk of loss. A portion of the income generated upon investment of the collateral is remitted to the Borrowers, and the remainder is allocated between the fund and the lending agent. On loans collateralized by U.S. Treasury and/or federal agency obligations, a fee is received from the Borrower, and is allocated between the fund and the lending agent. Income from securities lending is separately reported in the Statement of Operations. The dividend and interest income earned on the securities loaned is accounted for in the same manner as other dividend and interest income. At December 31, 2018, there were no securities on loan or collateral outstanding.

Indemnifications – Under the 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 the fund. Additionally, in the normal course of business, the fund enters into agreements with service providers that may contain indemnification clauses. The 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 the accrual basis. Dividends received in cash are recorded on theex-dividend date. Certain dividends from foreign securities will be recorded when the fund is informed of the dividend if such information is obtained subsequent to theex-dividend date. Dividend and interest payments received in additional securities are recorded on theex-dividend orex-interest date in an amount equal to the value of the security on such date.

MFS International Value Portfolio

Notes to Financial Statements – continued

Book/tax differences primarily relate to wash sale loss deferrals, derivative transactions, and redemptionsin-kind.

The tax character of distributions declared to shareholders for the last two fiscal years is as follows:


	Year ended		Year ended
	12/31/18		12/31/17
Ordinary income (including any short-term capital gains)		$19,511,316		$25,981,495
Long-term capital gains		23,465,669		—
Total distributions		$42,976,985		$25,981,495

The federal tax cost and the tax basis components of distributable earnings were as follows:


As of 12/31/18

Cost of investments	$1,028,940,198
Gross appreciation	182,966,391
Gross depreciation	(71,195,365	)
Net unrealized appreciation (depreciation)	$111,771,026

Undistributed ordinary income	21,215,624
Undistributed long-term capital gain	37,691,707
Other temporary differences	(64,566	)

Multiple Classes of Shares of Beneficial Interest – The fund offers multiple classes of shares, which differ in their respective distribution and/or service fees. The fund’s 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. The fund’s distributions declared to shareholders as reported in the Statements of Changes in Net Assets are presented by class as follows:


	From net investment income				From net realized gain

	Year ended 12/31/18		Year ended 12/31/17		Year ended 12/31/18		Year ended 12/31/17
Initial Class		$3,352,328		$4,007,935		$3,375,683		$254,388
Service Class		16,158,988		20,243,257		20,089,986		1,475,915
Total		$19,511,316		$24,251,192		$23,465,669		$1,730,303

(3)

Transactions with Affiliates

Investment Adviser – The fund has an investment advisory agreement with MFS to provide overall investment management and related administrative services and facilities to the fund. The management fee is computed daily and paid monthly at the following annual rates based on the fund’s average daily net assets:


Up to $1 billion			0.90%
In excess of $1 billion and up to $2 billion			0.80%
In excess of $2 billion			0.70%

MFS has agreed in writing to reduce its management fee by a specified amount if certain MFS mutual fund assets exceed thresholds agreed to by MFS and the fund’s Board of Trustees. For the year ended December 31, 2018, this management fee reduction amounted to $180,594, which is included in the reduction of total expenses in the Statement of Operations. The management fee incurred for the year ended December 31, 2018 was equivalent to an annual effective rate of 0.84% of the fund’s average daily net assets.

MFS International Value Portfolio

Notes to Financial Statements – continued

The investment adviser has agreed in writing to pay a portion of the fund’s total annual operating expenses, excluding interest, taxes, extraordinary expenses, brokerage and transaction costs, and investment-related expenses, such that total annual operating expenses do not exceed 0.90% of average daily net assets for the Initial Class shares and 1.15% of average daily net assets for the Service Class shares. This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until April 30, 2020. For the year ended December 31, 2018, the fund’s actual operating expenses did not exceed the limit and therefore, the investment adviser did not pay any portion of the fund’s expenses related to this agreement.

Distributor – MFS Fund Distributors, Inc. (MFD), a wholly-owned subsidiary of MFS, is the distributor of shares of the fund. The Trustees have adopted a distribution plan for the Service Class shares pursuant to Rule12b-1 under the Investment Company Act of 1940.

Shareholder Servicing Agent – MFS Service Center, Inc. (MFSC), a wholly-owned subsidiary of MFS, receives a fee from the fund for its services as shareholder servicing agent. For the year ended December 31, 2018, the fee was $44,735, which equated to 0.0024% annually of the fund’s average daily net assets. MFSC also receives payment from the fund forout-of-pocket expenses paid by MFSC on behalf of the fund. For the year ended December 31, 2018, these costs amounted to $1,484.

Administrator – MFS provides certain financial, legal, shareholder communications, compliance, and other administrative services to the fund. Under an administrative services agreement, the fund reimburses MFS the costs incurred to provide these services. The fund is charged an annual fixed amount of $17,500 plus a fee based on average daily net assets. The administrative services fee incurred for the year ended December 31, 2018 was equivalent to an annual effective rate of 0.0148% of the fund’s average daily net assets.

Trustees’ and Officers’ Compensation – The fund pays compensation to independent Trustees in the form of a retainer, attendance fees, and additional compensation to Board and Committee chairpersons. The 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 – This fund and certain other funds managed by MFS (the funds) have entered into a service agreement (the ISO Agreement) which provides for payment of fees solely by the funds to Tarantino LLC in return for the provision of services of an Independent Senior Officer (ISO) for the funds. Frank L. Tarantino serves as the ISO and is an officer of the funds and the sole member of Tarantino LLC. The funds can terminate the ISO Agreement with Tarantino LLC at any time under the terms of the ISO Agreement. For the year ended December 31, 2018, the fee paid by the fund under this agreement was $3,270 and is included in “Miscellaneous” expense in the Statement of Operations. MFS has agreed to bear all expenses associated with office space, other administrative support, and supplies provided to the ISO.

The fund is permitted to engage in purchase and sale transactions with funds and accounts for which MFS serves as investment adviser orsub-adviser (“cross-trades”) pursuant to a policy adopted by the Board of Trustees. This policy has been designed to ensure that cross-trades conducted by the fund comply with Rule17a-7 under the Investment Company Act of 1940. During the year ended December 31, 2018, the fund engaged in purchase and sale transactions pursuant to this policy, which amounted to $270,349 and $2,471,848, respectively. The sales transactions resulted in net realized gains (losses) of $41,342.

(4)

Portfolio Securities

For the year ended December 31, 2018, purchases and sales of investments, other thanin-kind transactions and short-term obligations, aggregated $380,188,613 and $295,151,885, respectively.

MFS International Value Portfolio

Notes to Financial Statements – continued

(5)

Shares of Beneficial Interest

The 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:


	Year ended 12/31/18						Year ended 12/31/17

	Shares			Amount			Shares			Amount
Shares sold
Initial Class		1,807,723			$49,642,877			2,886,969			$74,370,699
Service Class		9,068,135			246,748,145			10,119,707			254,467,286
		10,875,858			$296,391,022			13,006,676			$328,837,985

Shares issued to shareholders in reinvestment of distributions
Initial Class		227,591			$6,449,925			156,248			$4,262,323
Service Class		1,299,712			36,248,974			845,762			21,719,172
		1,527,303			$42,698,899			1,002,010			$25,981,495

Shares reacquired
Initial Class		(1,988,524	)		$(55,464,604	)		(2,360,709	)		$(60,630,463	)
Service Class		(37,642,907	)		(976,864,994	)		(6,099,396	)		(153,445,387	)
		(39,631,431	)		$(1,032,329,598	)		(8,460,105	)		$(214,075,850	)

Net change
Initial Class		46,790			$628,198			682,508			$18,002,559
Service Class		(27,275,060	)		(693,867,875	)		4,866,073			122,741,071
		(27,228,270	)		$(693,239,677	)		5,548,581			$140,743,630

The fund is one of several mutual funds in which certain MFS funds may invest. The MFS funds do not invest in the underlying funds for the purpose of exercising management or control. At the end of the period, the MFS Moderate Allocation Portfolio, the MFS Growth Allocation Portfolio, and the MFS Conservative Allocation Portfolio were the owners of record of approximately 4%, 1%, and 1%, respectively, of the value of outstanding voting shares of the fund.

Effective at the close of business on October 16, 2017, the fund is closed to new investors subject to certain exceptions. Please see the fund’s prospectus for details.

(6)

Line of Credit

The fund and certain other funds managed by MFS participate in a $1.25 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 Overnight Bank Funding rate or daily one month LIBOR plus an agreed upon spread. A commitment fee, based on the average daily, unused portion of the committed line of credit, is allocated among the participating funds. In addition, the 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, at a rate equal to the Overnight Bank Funding rate plus an agreed upon spread. For the year ended December 31, 2018, the fund’s commitment fee and interest expense were $11,430 and $0, respectively, and are included in “Miscellaneous” expense in the Statement of Operations.

(7)

Investments in Affiliated Issuers


Affiliated Issuers		Beginning Shares/Par Amount		Acquisitions Shares/Par Amount		Dispositions Shares/Par Amount			Ending Shares/Par Amount

MFS Institutional Money Market Portfolio			57,389,567		234,077,867		(256,767,580	)		34,699,854

Affiliated Issuers	Realized Gain (Loss)	Change in Unrealized Appreciation/ Depreciation		Capital Gain Distributions		Dividend Income			Ending Value

MFS Institutional Money Market Portfolio	$1,155		$2,508		$—		$1,121,219			$34,696,385

(8)

RedemptionsIn-Kind

On October 19, 2018, the fund recorded a redemptionin-kind of portfolio securities and cash that was valued at $809,828,954. The redeeming shareholder generally receives a pro rata share of the securities held by the fund. The distribution of such securities generated a realized gain of $286,329,253 for the fund, which is included in Net realized gain (loss) in the Statement of Operations. For tax purposes, no gains or losses were recognized.

MFS International Value Portfolio

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees of MFS Variable Insurance Trust II and the Shareholders of

MFS International Value Portfolio:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities of MFS International Value Portfolio (the “Fund”), including the portfolio of investments, as of December 31, 2018, the related statement 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of December 31, 2018, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.

DELOITTE & TOUCHE LLP

Boston, Massachusetts

February 15, 2019

We have served as the auditor of one or more of the MFS investment companies since 1924.

MFS International Value Portfolio

TRUSTEES AND OFFICERS – IDENTIFICATION AND BACKGROUND


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds overseen by the Trustee	Principal Occupations During the Past Five Years	Other Directorships During the Past Five Years (j)
INTERESTED TRUSTEES
Robert J. Manning (k) (age 55)	Trustee	February 2004	135	Massachusetts Financial Services Company, Executive Chairman (since January 2017); Director; Chairman of the Board; Chief Executive Officer (until 2015);Co-Chief Executive Officer(2015-2016)	N/A

Robin A. Stelmach (k) (age 57)	Trustee	January 2014	135	Massachusetts Financial Services Company, Vice Chair (since January 2017); Chief Operating Officer and Executive Vice President (until January 2017)	N/A

INDEPENDENT TRUSTEES
John P. Kavanaugh (age 64)	Trustee and Chair of Trustees	January 2009	135	Private investor	N/A

Steven E. Buller (age 67)	Trustee	February 2014	135	Financial Accounting Standards Advisory Council, Chairman(2014-2015); Public Company Accounting Oversight Board, Standing Advisory Group, Member (until 2014); BlackRock, Inc. (investment management), Managing Director (until 2014), BlackRock Finco UK (investment management), Director (until 2014)	N/A

John A. Caroselli (age 64)	Trustee	March 2017	135	JC Global Advisors, LLC (management consulting), President (since 2015); First Capital Corporation (commercial finance), Executive Vice President (until 2015)	N/A

Maureen R. Goldfarb (age 63)	Trustee	January 2009	135	Private investor	N/A

Michael Hegarty (age 74)	Trustee	December 2004	135	Private investor	Rouse Properties Inc., Director (until 2016); Capmark Financial Group Inc., Director (until 2015)

Peter D. Jones (age 63)	Trustee	January 2019	135	Franklin Templeton Distributors, Inc. (investment management), President (until 2015); Franklin Templeton Institutional, LLC (investment management), Chairman (until 2015)	N/A

James W. Kilman, Jr. (age 57)	Trustee	January 2019	135	KielStrand Capital LLC (family office and merchant bank), Chief Executive Officer (since 2016); Morgan Stanley & Co. (financial services), Vice Chairman of Investment Banking,Co-Head of Diversified Financials Coverage – Financial Institutions Investment Banking Group (until 2016)	alpha-En Corporation, Director (since 2016)

MFS International Value Portfolio

Trustees and Officers – continued


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds overseen by the Trustee	Principal Occupations During the Past Five Years	Other Directorships During the Past Five Years (j)
Clarence Otis, Jr. (age 62)	Trustee	March 2017	135	Darden Restaurants, Inc., Chief Executive Officer (until 2014)	VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director; Federal Reserve Bank of Atlanta, Director (until 2015)

Maryanne L. Roepke (age 62)	Trustee	May 2014	135	American Century Investments (investment management), Senior Vice President and Chief Compliance Officer (until 2014)	N/A

Laurie J. Thomsen (age 61)	Trustee	March 2005	135	Private investor	The Travelers Companies, Director; Dycom Industries, Inc., Director (since 2015)


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds for which the Person is an Officer	Principal Occupations During the Past Five Years
OFFICERS
Christopher R. Bohane (k) (age 45)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Vice President and Assistant General Counsel

Kino Clark (k) (age 50)	Assistant Treasurer	January 2012	135	Massachusetts Financial Services Company, Vice President

John W. Clark, Jr. (k) (age 51)	Assistant Treasurer	April 2017	135	Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head – Treasurer’s Office (until February 2017)

Thomas H. Connors (k) (age 59)	Assistant Secretary and Assistant Clerk	September 2012	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Ethan D. Corey (k) (age 55)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel

David L. DiLorenzo (k) (age 50)	President	July 2005	135	Massachusetts Financial Services Company, Senior Vice President

Heidi W. Hardin (k) (age 51)	Secretary and Clerk	April 2017	135	Massachusetts Financial Services Company, Executive Vice President and General Counsel (since March 2017); Harris Associates (investment management), General Counsel (from September 2015 to January 2017); Janus Capital Management LLC (investment management), Senior Vice President and General Counsel (until September 2015)

Brian E. Langenfeld (k) (age 45)	Assistant Secretary and Assistant Clerk	June 2006	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Amanda S. Mooradian (k) (age 39)	Assistant Secretary and Assistant Clerk	September 2018	135	Massachusetts Financial Services Company, Assistant Vice President and Counsel

Susan A. Pereira (k) (age 48)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Kasey L. Phillips (k) (age 48)	Assistant Treasurer	September 2012	135	Massachusetts Financial Services Company, Vice President

Matthew A. Stowe (k) (age 44)	Assistant Secretary and Assistant Clerk	October 2014	135	Massachusetts Financial Services Company, Vice President and Assistant General Counsel

MFS International Value Portfolio

Trustees and Officers – continued


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds for which the Person is an Officer	Principal Occupations During the Past Five Years
Frank L. Tarantino (age 74)	Independent Senior Officer	June 2004	135	Tarantino LLC (provider of compliance services), Principal

Richard S. Weitzel (k) (age 48)	Assistant Secretary and Assistant Clerk	October 2007	135	Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel

Martin J. Wolin (k) (age 51)	Chief Compliance Officer	July 2015	135	Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer (since July 2015); Mercer (financial service provider), Chief Risk and Compliance Officer, North America and Latin America (until June 2015)

James O. Yost (k) (age 58)	Treasurer	September 1990	135	Massachusetts Financial Services Company, Senior Vice President

(h)

(j)	Directorships or trusteeships of companies required to report to the Securities and Exchange Commission (i.e., “public companies”).

(k)

Messrs. Buller, Hegarty, Kilman and Otis and Ms. Roepke are members of the Trust’s Audit Committee.

Each of the Interested Trustees and certain Officers hold comparable officer positions with certain affiliates of MFS.

The Statement of Additional Information for a Fund includes further information about the Trustees and is available without charge upon request by calling1-800-225-2606.


Investment Adviser Massachusetts Financial Services Company 111 Huntington Avenue Boston, MA 02199-7618		Custodian State Street Bank and Trust Company 1 Lincoln Street Boston, MA 02111-2900

Distributor MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618		Independent Registered Public Accounting Firm Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116

Portfolio Manager(s) Pablo De La Mata Benjamin Stone

MFS International Value Portfolio

BOARD REVIEW OF INVESTMENT ADVISORY AGREEMENT

Based on information provided by Broadridge and MFS, the Trustees reviewed the Fund’s total return investment performance as well as the Broadridge performance universe over various time periods. The Trustees placed particular emphasis on the total return performance of the Fund’s Initial Class shares in comparison to the performance of funds in its Broadridge performance universe over the three-year period ended December 31, 2017, which the Trustees believed was a long enough period to reflect differing market conditions. The total return performance of the Fund’s Initial Class shares was in the 1st quintile relative to the other funds in the universe for this three-year period (the 1st quintile being the best performers and the 5th quintile being the worst performers). The total return performance of the Fund’s Initial Class shares was in the 4th quintile for theone-year period and the 1st quintile for the five-year period ended December 31, 2017 relative to the Broadridge performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.

MFS International Value Portfolio

Board Review of Investment Advisory Agreement – continued

The Trustees also considered whether the Fund may benefit from any economies of scale in the management of the Fund in the event of growth in assets of the Fund and/or growth in assets of the MFS Funds as a whole. They noted that the Fund’s advisory fee rate schedule is subject to contractual breakpoints that reduce the Fund’s advisory fee rate on average daily net assets over $1 billion and $2 billion. The Trustees also noted that MFS has agreed in writing to waive a portion of the management fees of certain MFS Funds, including the Fund, if the total combined assets of certain funds within the MFS Funds’ complex increase above agreed upon thresholds (the “group fee waiver”), enabling the Fund’s shareholders to share in the benefits from any economies of scale at the complex level. The group fee waiver is reviewed and renewed annually between the Board and MFS. The Trustees concluded that the breakpoints and the group fee waiver were sufficient to allow the Fund to benefit from economies of scale as its assets and overall complex assets grow.

MFS International Value Portfolio

PROXY VOTING POLICIES AND INFORMATION

QUARTERLY PORTFOLIO DISCLOSURE

The fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q is available on the SEC’s website athttp://www.sec.gov. A shareholder can obtain the portfolio holdings report for the first and third quarters of the fund’s fiscal year atmfs.com/vit2 by choosing the fund’s name and then selecting the “Resources” tab and clicking on “Prospectus and Reports”.

FURTHER INFORMATION

INFORMATION ABOUT FUND CONTRACTS AND LEGAL CLAIMS

FEDERAL TAX INFORMATION (unaudited)

The following information is provided pursuant to provisions of the Internal Revenue Code.

The fund designates $25,813,000 as capital gain dividends paid during the fiscal year.

For corporate shareholders, 8.99% of the ordinary income dividends paid during the fiscal year qualify for the corporate dividends received deduction.

Income derived from foreign sources was $36,684,656. The fund intends to pass through foreign tax credits of $3,323,163 for the fiscal year.

rev. 3/16


FACTS		WHAT DOES MFS DO WITH YOUR PERSONAL INFORMATION?


Why?		Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.

What?

The types of personal information we collect and share depend on the product or service you have with us. This information can include:

• Social Security number and account balances

• Account transactions and transaction history

• Checking account information and wire transfer instructions

When you areno longer our customer, we continue to share your information as described in this notice.


How?		All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons MFS chooses to share; and whether you can limit this sharing.


Reasons we can share your personal information	Does MFS share?	Can you limit this sharing?
For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes – to offer our products and services to you	No	We don’t share
For joint marketing with other financial companies	No	We don’t share
For our affiliates’ everyday business purposes – information about your transactions and experiences	No	We don’t share
For our affiliates’ everyday business purposes – information about your creditworthiness	No	We don’t share
For nonaffiliates to market to you	No	We don’t share


Questions?		Call800-225-2606 or go tomfs.com.


Page 2


Who we are
Who is providing this notice?		MFS Funds, MFS Investment Management, MFS Institutional Advisors, Inc., and MFS Heritage Trust Company.


What we do
How does MFS protect my personal information?		To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include procedural, electronic, and physical safeguards for the protection of the personal information we collect about you.
How does MFS collect my personal information?		We collect your personal information, for example, when you • open an account or provide account information • direct us to buy securities or direct us to sell your securities • make a wire transfer We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can’t I limit all sharing?		Federal law gives you the right to limit only • sharing for affiliates’ everyday business purposes – information about your creditworthiness • affiliates from using your information to market to you • sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing.


Definitions
Affiliates		Companies related by common ownership or control. They can be financial and nonfinancial companies. • MFS does not share personal information with affiliates, except for everyday business purposes as described on page one of this notice.
Nonaffiliates		Companies not related by common ownership or control. They can be financial and nonfinancial companies. • MFS does not share with nonaffiliates so they can market to you.
Joint marketing		A formal agreement between nonaffiliated financial companies that together market financial products or services to you. • MFS doesn’t jointly market.


Other important information
If you own an MFS product or receive an MFS service in the name of a third party such as a bank or broker-dealer, their privacy policy may apply to you instead of ours.

LOGO

Annual Report

December 31, 2018

LOGO

MFS^® Massachusetts Investors Growth Stock Portfolio

LOGO

MFS^® Variable Insurance Trust II

MIS-ANN

MFS® Massachusetts Investors Growth Stock Portfolio

CONTENTS

The report is prepared for the general information of contract owners. 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 OR CREDIT UNION GUARANTEE• NOT A DEPOSIT• NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY OR NCUA/NCUSIF

MFS Massachusetts Investors Growth Stock Portfolio

LETTER FROM THE EXECUTIVE CHAIRMAN

LOGO

Dear Contract Owners:

Respectfully,

LOGO

Robert J. Manning

Executive Chairman

MFS Investment Management

February 15, 2019

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

MFS Massachusetts Investors Growth Stock Portfolio

PORTFOLIO COMPOSITION

Portfolio structure

LOGO


Top ten holdings
Alphabet, Inc., “A”			6.5%
Microsoft Corp.			4.7%
Accenture PLC, “A”			3.4%
Visa, Inc., “A”			3.2%
Texas Instruments, Inc.			2.9%
Aon PLC			2.9%
Comcast Corp., “A”			2.5%
Apple, Inc.			2.5%
Thermo Fisher Scientific, Inc.			2.5%
Starbucks Corp.			2.4%


GICS equity sectors
Information Technology			29.8%
Consumer Discretionary			13.5%
Health Care			12.3%
Communication Services			11.9%
Industrials			10.2%
Financials			8.4%
Consumer Staples			7.9%
Materials			5.1%
Energy			0.1%

Percentages are based on net assets as of December 31, 2018.

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

MFS Massachusetts Investors Growth Stock Portfolio

MANAGEMENT REVIEW

Summary of Results

For the twelve months ended December 31, 2018, Initial Class shares of the MFS Massachusetts Investors Growth Stock Portfolio(“fund”) provided a total return of 0.81%, while Service Class shares of the fund provided a total return of 0.58%. These compare with a return of –1.51% over the same period for the fund’s benchmark, the Russell 1000® Growth Index.

Market Environment

Contributors to Performance

Security selection and, to a lesser extent, an underweight allocation to the industrials sector were primary contributors to performance relative to the Russell 1000® Growth Index. Within this sector, the fund’s overweight position in analytics and risk assessment services provider Verisk Analytics bolstered relative results. The stock price of Verisk Analytics advanced as the company reported improved revenue growth and a significant benefit from US tax reform.

Security selection in both thecommunication services andhealth care sectors also benefited relative returns. Within thecommunication services sector, not holding shares of social networking firm Facebook aided relative performance. Within thehealth care sector, the fund’s holding of medical device company Abbott Laboratories (b), and an overweight position in analytical equipment, software and services provider Thermo Fisher Scientific, helped relative results. Shares of Abbott Laboratories benefited from solid organic growth results, owing to strong performance in the company’s Diabetes Care, Diagnostics, Nutrition and Medical Devices segments.

Other top relative contributors during the period included the fund’s overweight positions in coffee and tea company Starbucks, athletic shoes and apparel manufacturer NIKE, retail chain operator TJX Cos. and water, hygiene and energy technologies, and services provider Ecolab. Additionally, not owning shares of computer graphics processors maker NVIDIA and tobacco company Altria Group supported relative performance.

Detractors from Performance

The combination of an overweight position and stock selection in theconsumer staplessector detracted from relative performance. Within this sector, the fund’s holding of beauty products company Coty (b)(h), and an overweight position in consumer products company Colgate-Palmolive, hindered relative results. The stock price of Coty declined due to a difficult retail environment, along with disruptions in its supply chain. The share price also came under pressure after the firm provided fiscal-year 2019 earnings per share guidance that was below consensus estimates.

Elsewhere, not owning shares ofe-commerce and cloud services giant Amazon.com and health insurance and Medicare/Medicaid provider UnitedHealth Group, and the fund’s overweight position in video game maker Electronic Arts, weakened relative returns.

MFS Massachusetts Investors Growth Stock Portfolio

Management Review – continued

The stock price of Amazon.com appreciated during the period as the company delivered solid earnings results, driven by strong performance in its Amazon Web Services (AWS), Cloud services and advertising segments. In addition, the fund’s holdings of global industrial manufacturing and engineering company Colfax (b), international betting and gaming company Paddy Power Betfair (b) (Ireland), oilfield services company Schlumberger (b),e-commerce giant Alibaba Group Holding (b) (China), and an underweight position in strong-performing software giant Microsoft, dampened relative results.

During the reporting period, the fund’s relative currency exposure, resulting primarily from differences between the fund’s and the benchmark’s exposures to holdings of securities denominated in foreign currencies, detracted from relative performance. All of MFS’ investment decisions are driven by the fundamentals of each individual opportunity and, as such, it is common for our portfolios to have different currency exposures than the benchmark.

Respectfully,

Portfolio Manager(s)

Jeffrey Constantino

(b)	Security is not a benchmark constituent.

(h)	Security was not held in the portfolio at period end.

MFS Massachusetts Investors Growth Stock Portfolio

PERFORMANCE SUMMARY THROUGH 12/31/18

Growth of a Hypothetical $10,000 Investment

LOGO

Total Returns through 12/31/18

Average annual total returns


	Share Class	Class Inception Date	1-yr	5-yr	10-yr
	Initial Class	5/06/98	0.81%	8.87%	14.09%
	Service Class	8/24/01	0.58%	8.62%	13.81%

Comparative benchmark(s)
	Russell 1000® Growth Index (f)		(1.51)%	10.40%	15.29%

(f)	Source: FactSet Research Systems Inc.

Benchmark Definition(s)

Russell 1000® Growth Index – constructed to provide a comprehensive barometer for growth securities in the large-cap segment of the U.S. equity universe. Companies in this index generally have higher price-to-book ratios and higher forecasted growth values. The Russell 1000® Growth Index is a trademark/service mark of the Frank Russell Company. Russell® is a trademark of the Frank Russell Company.

It is not possible to invest directly in an index.

Notes to Performance Summary

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

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

MFS Massachusetts Investors Growth Stock Portfolio

EXPENSE TABLE

Fund Expenses Borne by the Contract Holders during the Period,

July 1, 2018 through December 31, 2018

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period July 1, 2018 through December 31, 2018.

Actual Expenses

Hypothetical Example for Comparison Purposes


Share Class		Annualized Expense Ratio		Beginning Account Value 7/01/18		Ending Account Value 12/31/18		Expenses Paid During Period (p) 7/01/18-12/31/18
Initial Class	Actual		0.79%		$1,000.00		$955.20		$3.89
Initial Class	Hypothetical (h)		0.79%		$1,000.00		$1,021.22		$4.02
Service Class	Actual		1.04%		$1,000.00		$953.87		$5.12
Service Class	Hypothetical (h)		1.04%		$1,000.00		$1,019.96		$5.30

(h)	5% class return per year before expenses.

(p)	“Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect theone-half year period).

MFS Massachusetts Investors Growth Stock Portfolio

PORTFOLIO OF INVESTMENTS – 12/31/18

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



Issuer	Shares/Par		Value ($)

COMMON STOCKS – 99.2%
Aerospace – 1.7%
United Technologies Corp.		128,876	$	13,722,717

Apparel Manufacturers – 6.2%
Adidas AG		40,207	$	8,402,649
LVMH Moet Hennessy Louis Vuitton SE		49,873		14,754,057
NIKE, Inc., “B”		239,833		17,781,219
VF Corp.		127,437		9,091,356

			$	50,029,281

Broadcasting – 0.4%
Walt Disney Co.		31,851	$	3,492,462

Brokerage & Asset Managers – 3.5%
Blackstone Group LP		571,597	$	17,039,306
Charles Schwab Corp.		169,264		7,029,534
CME Group, Inc.		24,531		4,614,772

			$	28,683,612

Business Services – 13.1%
Accenture PLC, “A”		197,872	$	27,901,931
Cognizant Technology Solutions Corp., “A”		246,649		15,657,279
Equifax, Inc.		34,968		3,256,570
Experian Group Ltd.		418,578		10,163,545
Fidelity National Information Services, Inc.		173,835		17,826,779
Fiserv, Inc. (a)		231,566		17,017,785
Verisk Analytics, Inc., “A” (a)		131,633		14,353,262

			$	106,177,151

Cable TV – 2.5%
Comcast Corp., “A”		602,485	$	20,514,614

Chemicals – 2.1%
LyondellBasell Industries N.V., “A”		28,344	$	2,357,087
PPG Industries, Inc.		141,747		14,490,796

			$	16,847,883

Computer Software – 4.7%
Microsoft Corp.		376,095	$	38,199,969

Computer Software – Systems – 2.5%
Apple, Inc.		129,700	$	20,458,878

Construction – 1.5%
Sherwin-Williams Co.		31,778	$	12,503,372

Consumer Products – 6.6%
Church & Dwight Co., Inc.		107,432	$	7,064,728
Colgate-Palmolive Co.		282,673		16,824,697
Estee Lauder Cos., Inc., “A”		107,793		14,023,869
L’Oréal		23,133		5,332,731
Reckitt Benckiser Group PLC		137,938		10,571,801

			$	53,817,826

Electrical Equipment – 4.2%
Amphenol Corp., “A”		151,265	$	12,255,490
Fortive Corp.		138,599		9,377,608
Mettler-Toledo International, Inc. (a)		22,823		12,908,233

			$	34,541,331



Issuer	Shares/Par		Value ($)

COMMON STOCKS – continued
Electronics – 6.3%
Analog Devices, Inc.		183,939	$	15,787,484
Taiwan Semiconductor Manufacturing Co. Ltd., ADR		299,520		11,055,283
Texas Instruments, Inc.		253,727		23,977,202

			$	50,819,969

Entertainment – 0.5%
Twenty-First Century Fox, Inc.		83,028	$	3,995,307

Food & Beverages – 1.3%
PepsiCo, Inc.		91,961	$	10,159,851

Gaming & Lodging – 0.8%
Paddy Power Betfair PLC		78,691	$	6,419,170

Health Maintenance Organizations – 0.2%
Cigna Corp.		7,446	$	1,414,208

Insurance – 2.9%
Aon PLC		164,000	$	23,839,040

Internet – 8.1%
Alibaba Group Holding Ltd., ADR (a)		97,372	$	13,346,780
Alphabet, Inc., “A” (a)		50,369		52,633,590

			$	65,980,370

Leisure & Toys – 2.0%
Electronic Arts, Inc. (a)		205,871	$	16,245,281

Machinery & Tools – 2.2%
Colfax Corp. (a)		64,401	$	1,345,981
Nordson Corp.		139,214		16,615,191

			$	17,961,172

Medical & Health Technology & Services – 0.5%
CVS Health Corp.		65,887	$	4,316,916

Medical Equipment – 8.4%
Abbott Laboratories		238,122	$	17,223,364
Cooper Cos., Inc.		18,317		4,661,677
Danaher Corp.		129,219		13,325,063
Thermo Fisher Scientific, Inc.		89,661		20,065,235
Waters Corp. (a)		68,530		12,928,185

			$	68,203,524

Oil Services – 0.1%
Schlumberger Ltd.		21,692	$	782,647

Other Banks & Diversified Financials – 5.2%
Mastercard, Inc., “A”		87,179	$	16,446,319
Visa, Inc., “A”		198,796		26,229,144

			$	42,675,463

Pharmaceuticals – 1.6%
Elanco Animal Health, Inc. (a)		17,778	$	560,541
Eli Lilly & Co.		48,692		5,634,638
Zoetis, Inc.		78,880		6,747,395

			$	12,942,574

MFS Massachusetts Investors Growth Stock Portfolio

Portfolio of Investments – continued


Issuer	Shares/Par		Value ($)

COMMON STOCKS – continued
Printing & Publishing – 1.9%
Moody’s Corp.		109,690	$	15,360,988

Railroad & Shipping – 1.8%
Union Pacific Corp.		103,561	$	14,315,237

Restaurants – 2.4%
Starbucks Corp.		308,280	$	19,853,232

Specialty Chemicals – 1.5%
Ecolab, Inc.		83,972	$	12,373,274

Specialty Stores – 2.5%
AutoZone, Inc. (a)		5,527	$	4,633,505
TJX Cos., Inc.		348,193		15,578,155

			$	20,211,660

Total Common Stocks (Identified Cost, $529,960,039)			$	806,858,979


Issuer	Shares/Par		Value ($)

INVESTMENT COMPANIES (h) – 0.8%
Money Market Funds – 0.8%
MFS Institutional Money Market Portfolio, 2.4% (v) (Identified Cost, $6,790,527)		6,791,206	$	6,790,527

OTHER ASSETS, LESS LIABILITIES – 0.0%				83,841

NET ASSETS – 100.0%			$	813,733,347

(a)

Non-income producing security.

(h)

(v)

The following abbreviations are used in this report and are defined:

ADR

American Depositary Receipt

PLC

Public Limited Company

See Notes to Financial Statements

MFS Massachusetts Investors Growth Stock Portfolio

FINANCIAL STATEMENTS ^| STATEMENT OF ASSETS AND LIABILITIES

This statement represents your fund’s balance sheet, which details the assets and liabilities comprising the total value of the fund.


At 12/31/18

Assets
Investments in unaffiliated issuers, at value (identified cost, $529,960,039)			$806,858,979
Investments in affiliated issuers, at value (identified cost, $6,790,527)			6,790,527
Receivables for
Fund shares sold			177,531
Interest and dividends			678,050
Other assets			5,122
Total assets			$814,510,209

Liabilities
Payables for
Fund shares reacquired			$578,329
Payable to affiliates
Investment adviser			66,651
Shareholder servicing costs			248
Distribution and/or service fees			8,705
Payable for independent Trustees’ compensation			2
Accrued expenses and other liabilities			122,927
Total liabilities			$776,862
Net assets			$813,733,347

Net assets consist of
Paid-in capital			$461,902,139
Total distributable earnings (loss)			351,831,208
Net assets			$813,733,347
Shares of beneficial interest outstanding			46,464,920



	Net assets		Shares outstanding		Net asset value per share
Initial Class		$493,783,024		28,054,691		$17.60
Service Class		319,950,323		18,410,229		17.38

See Notes to Financial Statements

MFS Massachusetts Investors Growth Stock Portfolio

FINANCIAL STATEMENTS ^| STATEMENT OF OPERATIONS

This statement describes how much your fund earned in investment income and accrued in expenses. It also describes any gains and/or losses generated by fund operations.


Year ended 12/31/18

Net investment income (loss)
Income
Dividends	$13,235,578
Dividends from affiliated issuers	120,267
Income on securities loaned	57,916
Other	31,285
Foreign taxes withheld	(230,974	)
Total investment income	$13,214,072
Expenses
Management fee	$6,894,871
Distribution and/or service fees	905,280
Shareholder servicing costs	30,924
Administrative services fee	139,944
Independent Trustees’ compensation	12,944
Custodian fee	54,873
Shareholder communications	75,655
Audit and tax fees	57,449
Legal fees	8,116
Miscellaneous	38,304
Total expenses	$8,218,360
Reduction of expenses by investment adviser	(87,534	)
Net expenses	$8,130,826
Net investment income (loss)	$5,083,246

Realized and unrealized gain (loss)
Realized gain (loss) (identified cost basis)
Unaffiliated issuers	$71,417,732
Affiliated issuers	143
Foreign currency	(9,598	)
Net realized gain (loss)	$71,408,277
Change in unrealized appreciation or depreciation
Unaffiliated issuers	$(63,322,978	)
Translation of assets and liabilities in foreign currencies	(5,658	)
Net unrealized gain (loss)	$(63,328,636	)
Net realized and unrealized gain (loss)	$8,079,641
Change in net assets from operations	$13,162,887

See Notes to Financial Statements

MFS Massachusetts Investors Growth Stock Portfolio

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
	12/31/18			12/31/17
Change in net assets

From operations
Net investment income (loss)		$5,083,246			$5,035,640
Net realized gain (loss)		71,408,277			52,197,235
Net unrealized gain (loss)		(63,328,636	)		163,752,913
Change in net assets from operations		$13,162,887			$220,985,788
Total distributions to shareholders (a)		$(57,933,374	)		$(50,886,432	)
Change in net assets from fund share transactions		$(73,917,493	)		$(67,274,706	)
Total change in net assets		$(118,687,980	)		$102,824,650

Net assets
At beginning of period		932,421,327			829,596,677
At end of period (b)		$813,733,347			$932,421,327

(a)	Distributions from net investment income and from net realized gain are no longer required to be separately disclosed. See Note 2. For the year ended December 31, 2017, distributions from net investment income and from net realized gain were $4,930,035 and $45,956,397, respectively.

(b)	Parenthetical disclosure of undistributed net investment income is no longer required. See Note 2. For the year ended December 31, 2017, end of period net assets included undistributed net investment income of $5,031,671.

See Notes to Financial Statements

MFS Massachusetts Investors Growth Stock Portfolio

FINANCIAL STATEMENTS ^| FINANCIAL HIGHLIGHTS


Initial Class	Year ended

	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14

Net asset value, beginning of period		$18.60			$15.38			$16.38			$17.61			$17.31

Income (loss) from investment operations
Net investment income (loss) (d)		$0.13			$0.11			$0.11	(c)		$0.10			$0.14
Net realized and unrealized gain (loss)		0.16			4.16			0.95			(0.21	)		1.77
Total from investment operations		$0.29			$4.27			$1.06			$(0.11	)		$1.91

Less distributions declared to shareholders
From net investment income		$(0.12	)		$(0.12	)		$(0.10	)		$(0.09	)		$(0.10	)
From net realized gain		(1.17	)		(0.93	)		(1.96	)		(1.03	)		(1.51	)
Total distributions declared to shareholders		$(1.29	)		$(1.05	)		$(2.06	)		$(1.12	)		$(1.61	)
Net asset value, end of period (x)		$17.60			$18.60			$15.38			$16.38			$17.61
Total return (%) (k)(r)(s)(x)		0.81			28.42			6.08	(c)		(0.12	)		11.51

Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)		0.80			0.81			0.78	(c)		0.79			0.80
Expenses after expense reductions (f)		0.79			0.80			0.77	(c)		0.79			0.80
Net investment income (loss)		0.65			0.66			0.70	(c)		0.56			0.81
Portfolio turnover		23			21			24			27			23
Net assets at end of period (000 omitted)		$493,783			$562,471			$500,924			$537,645			$542,830

Service Class	Year ended

	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14

Net asset value, beginning of period		$18.38			$15.21			$16.22			$17.48			$17.19

Income (loss) from investment operations
Net investment income (loss) (d)		$0.08			$0.07			$0.07	(c)		$0.06			$0.10
Net realized and unrealized gain (loss)		0.16			4.10			0.94			(0.21	)		1.75
Total from investment operations		$0.24			$4.17			$1.01			$(0.15	)		$1.85

Less distributions declared to shareholders
From net investment income		$(0.07	)		$(0.07	)		$(0.06	)		$(0.08	)		$(0.05	)
From net realized gain		(1.17	)		(0.93	)		(1.96	)		(1.03	)		(1.51	)
Total distributions declared to shareholders		$(1.24	)		$(1.00	)		$(2.02	)		$(1.11	)		$(1.56	)
Net asset value, end of period (x)		$17.38			$18.38			$15.21			$16.22			$17.48
Total return (%) (k)(r)(s)(x)		0.58			28.10			5.84	(c)		(0.33	)		11.23

Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)		1.05			1.06			1.03	(c)		1.04			1.05
Expenses after expense reductions (f)		1.04			1.05			1.02	(c)		1.03			1.05
Net investment income (loss)		0.40			0.41			0.45	(c)		0.35			0.55
Portfolio turnover		23			21			24			27			23
Net assets at end of period (000 omitted)		$319,950			$369,950			$328,673			$337,742			$50,731

See Notes to Financial Statements

MFS Massachusetts Investors Growth Stock Portfolio

Financial Highlights – continued

(c)	Amount reflects aone-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher.

(d)	Per share data is based on average shares outstanding.

(f)	Ratios do not reflect reductions from fees paid indirectly, if applicable.

(k)	The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown.

(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.

(x)	The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes.

See Notes to Financial Statements

MFS Massachusetts Investors Growth Stock Portfolio

NOTES TO FINANCIAL STATEMENTS

(1)

Business and Organization

MFS Massachusetts Investors Growth Stock Portfolio (the fund) is a diversified series of MFS Variable Insurance Trust II (the trust). The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as anopen-end management investment company. The shareholders of each series of the trust are separate accounts of insurance companies, which offer variable annuity and/or life insurance products, and qualified retirement and pension plans.

(2)

Significant Accounting Policies

MFS Massachusetts Investors Growth Stock Portfolio

Notes to Financial Statements – continued

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 effect 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 the 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 the fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the fund determines its net asset value per share.


Financial Instruments	Level 1		Level 2		Level 3		Total
Equity Securities		$806,858,979		$—		$—		$806,858,979
Mutual Funds		6,790,527		—		—		6,790,527
Total		$813,649,506		$—		$—		$813,649,506

For further information regarding security characteristics, see the Portfolio of Investments.

Security Loans– Under its Securities Lending Agency Agreement with the fund, State Street Bank and Trust Company, as lending agent, loans the securities of the fund to certain qualified institutions (the “Borrowers”) approved by the fund. Security loans can be terminated at the discretion of either the lending agent or the fund and the related securities must be returned within the earlier of the standard trade settlement period for such securities or within three business days. The loans are collateralized by cash and/or U.S. Treasury and federal agency obligations in an amount typically at least equal to the market value of the securities loaned. On loans collateralized by cash, the cash collateral is invested in a money market fund. The market value of the loaned securities is determined at the close of business of the fund and any additional required collateral is delivered to the fund on the next business day. The lending agent provides the fund with indemnification against Borrower default. In the event of Borrower default, the lending agent will, for the benefit of the fund, either purchase securities identical to those loaned or, when such purchase is commercially impracticable, pay the fund the market value of the loaned securities. In return, the lending agent assumes the fund’s rights to the related collateral. If the collateral value is less than the cost to purchase identical securities, the lending agent is responsible for the shortfall, but only to the extent that such shortfall is not due to a decline in collateral value resulting from collateral reinvestment for which the fund bears the risk of loss. A portion of the income generated upon investment of the collateral is remitted to the Borrowers, and the remainder is allocated between the fund and the lending agent. On loans collateralized by U.S. Treasury and/or federal agency obligations, a fee is received from the Borrower, and is allocated between the fund and the lending agent. Income from securities lending is separately reported in the Statement of Operations. The dividend and interest income earned on the securities loaned is accounted for in the same manner as other dividend and interest income. At December 31, 2018, there were no securities on loan or collateral outstanding.

MFS Massachusetts Investors Growth Stock Portfolio

Notes to Financial Statements – continued

Investment Transactions and Income– Investment transactions are recorded on the trade date. Interest income is recorded on the accrual basis. Dividends received in cash are recorded on theex-dividend date. Certain dividends from foreign securities will be recorded when the fund is informed of the dividend if such information is obtained subsequent to theex-dividend date. Dividend payments received in additional securities are recorded on theex-dividend date in an amount equal to the value of the security on such date.

Book/tax differences primarily relate to wash sale loss deferrals.

The tax character of distributions declared to shareholders for the last two fiscal years is as follows:


	Year ended 12/31/18		Year ended 12/31/17
Ordinary income (including any short-term capital gains)		$9,646,280		$7,501,279
Long-term capital gains		48,287,094		43,385,153
Total distributions		$57,933,374		$50,886,432

The federal tax cost and the tax basis components of distributable earnings were as follows:


As of 12/31/18

Cost of investments	$539,076,711
Gross appreciation	291,084,745
Gross depreciation	(16,511,950	)
Net unrealized appreciation (depreciation)	$274,572,795

Undistributed ordinary income	9,803,031
Undistributed long-term capital gain	67,455,400
Other temporary differences	(18	)

MFS Massachusetts Investors Growth Stock Portfolio

Notes to Financial Statements – continued

dividend rates are generally due to differences in separate class expenses. The fund’s distributions declared to shareholders as reported in the Statements of Changes in Net Assets are presented by class as follows:


	From net investment income				From net realized gain
	Year ended 12/31/18		Year ended 12/31/17		Year ended 12/31/18		Year ended 12/31/17
Initial Class		$3,178,874		$3,459,849		$32,343,736		$27,586,603
Service Class		1,200,214		1,470,186		21,210,550		18,369,794
Total		$4,379,088		$4,930,035		$53,554,286		$45,956,397

(3)

Transactions with Affiliates


Up to $1 billion			0.75%
In excess of $1 billion			0.65%

MFS has agreed in writing to reduce its management fee by a specified amount if certain MFS mutual fund assets exceed thresholds agreed to by MFS and the fund’s Board of Trustees. For the year ended December 31, 2018, this management fee reduction amounted to $87,534, which is included in the reduction of total expenses in the Statement of Operations. The management fee incurred for the year ended December 31, 2018 was equivalent to an annual effective rate of 0.74% of the fund’s average daily net assets.

The investment adviser has agreed in writing to pay a portion of the fund’s total annual operating expenses, excluding interest, taxes, extraordinary expenses, brokerage and transaction costs, and investment-related expenses, such that total annual operating expenses do not exceed 0.82% of average daily net assets for the Initial Class shares and 1.07% of average daily net assets for the Service Class shares. This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until April 30, 2020. For the year ended December 31, 2018, the fund’s actual operating expenses did not exceed the limit and therefore, the investment adviser did not pay any portion of the fund’s expenses related to this agreement.

Shareholder Servicing Agent– MFS Service Center, Inc. (MFSC), a wholly-owned subsidiary of MFS, receives a fee from the fund for its services as shareholder servicing agent. For the year ended December 31, 2018, the fee was $29,687, which equated to 0.0032% annually of the fund’s average daily net assets. MFSC also receives payment from the fund forout-of-pocket expenses paid by MFSC on behalf of the fund. For the year ended December 31, 2018, these costs amounted to $1,237.

MFS Massachusetts Investors Growth Stock Portfolio

Notes to Financial Statements – continued

For the year ended December 31, 2018, the fee paid by the fund under this agreement was $1,565 and is included in “Miscellaneous” expense in the Statement of Operations. MFS has agreed to bear all expenses associated with office space, other administrative support, and supplies provided to the ISO.

The fund is permitted to engage in purchase and sale transactions with funds and accounts for which MFS serves as investment adviser orsub-adviser (“cross-trades”) pursuant to a policy adopted by the Board of Trustees. This policy has been designed to ensure that cross-trades conducted by the fund comply with Rule17a-7 under the Investment Company Act of 1940. During the year ended December 31, 2018, the fund engaged in purchase and sale transactions pursuant to this policy, which amounted to $982,831 and $171,981, respectively. The sales transactions resulted in net realized gains (losses) of $26,499.

Effective on or about January 3, 2018, the adviser has voluntarily undertaken to reimburse the fund from its own resources on a quarterly basis for the cost of investment research embedded in the cost of the fund’s securities trades. This agreement may be rescinded at any time. For the period on or about January 3, 2018 to December 31, 2018, this reimbursement amounted to $31,139, which is included in “Other” income in the Statement of Operations.

(4)

Portfolio Securities

For the year ended December 31, 2018, purchases and sales of investments, other than short-term obligations, aggregated $212,873,928 and $339,426,613, respectively.

(5)

Shares of Beneficial Interest

The 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:


	Year ended 12/31/18						Year ended 12/31/17

	Shares			Amount			Shares			Amount
Shares sold
Initial Class		382,702			$7,410,077			318,747			$5,421,181
Service Class		772,807			14,681,490			798,916			13,593,897
		1,155,509			$22,091,567			1,117,663			$19,015,078

Shares issued to shareholders in reinvestment of distributions
Initial Class		1,805,928			$35,522,610			1,841,427			$31,046,452
Service Class		1,152,817			22,410,764			1,189,447			19,839,980
		2,958,745			$57,933,374			3,030,874			$50,886,432

Shares reacquired
Initial Class		(4,374,590	)		$(84,354,144	)		(4,487,162	)		$(77,760,647	)
Service Class		(3,641,613	)		(69,588,290	)		(3,468,379	)		(59,415,569	)
		(8,016,203	)		$(153,942,434	)		(7,955,541	)		$(137,176,216	)

Net change
Initial Class		(2,185,960	)		$(41,421,457	)		(2,326,988	)		$(41,293,014	)
Service Class		(1,715,989	)		(32,496,036	)		(1,480,016	)		(25,981,692	)
		(3,901,949	)		$(73,917,493	)		(3,807,004	)		$(67,274,706	)

(6)

Line of Credit

The fund and certain other funds managed by MFS participate in a $1.25 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 Overnight Bank Funding rate or daily one month LIBOR plus an agreed upon spread. A commitment fee, based on the average daily, unused portion of the committed line of credit, is allocated among the participating funds. In addition, the 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, at a rate equal to the Overnight Bank Funding rate plus an agreed upon spread. For the year ended December 31, 2018, the fund’s commitment fee and interest expense were $5,388 and $0, respectively, and are included in “Miscellaneous” expense in the Statement of Operations.

MFS Massachusetts Investors Growth Stock Portfolio

Notes to Financial Statements – continued

(7)

Investments in Affiliated Issuers


Affiliated Issuers		Beginning Shares/Par Amount		Acquisitions Shares/Par Amount		Dispositions Shares/Par Amount			Ending Shares/Par Amount

MFS Institutional Money Market Portfolio			7,006,794		203,223,213		(203,438,801	)		6,791,206

Affiliated Issuers	Realized Gain (Loss)	Change in Unrealized Appreciation/ Depreciation		Capital Gain Distributions		Dividend Income			Ending Value

MFS Institutional Money Market Portfolio	$143		$—		$—		$120,267			$6,790,527

MFS Massachusetts Investors Growth Stock Portfolio

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees of MFS Variable Insurance Trust II and the Shareholders of MFS Massachusetts Investors Growth Stock Portfolio:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities of MFS Massachusetts Investors Growth Stock Portfolio (the “Fund”), including the portfolio of investments, as of December 31, 2018, the related statement 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of December 31, 2018, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

DELOITTE & TOUCHE LLP

Boston, Massachusetts

February 15, 2019

We have served as the auditor of one or more of the MFS investment companies since 1924.

MFS Massachusetts Investors Growth Stock Portfolio

TRUSTEES AND OFFICERS – IDENTIFICATION AND BACKGROUND


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds overseen by the Trustee	Principal Occupations During the Past Five Years	Other Directorships During the Past Five Years (j)
INTERESTED TRUSTEES
Robert J. Manning (k) (age 55)	Trustee	February 2004	135	Massachusetts Financial Services Company, Executive Chairman (since January 2017); Director; Chairman of the Board; Chief Executive Officer (until 2015);Co-Chief Executive Officer(2015-2016)	N/A

Robin A. Stelmach (k) (age 57)	Trustee	January 2014	135	Massachusetts Financial Services Company, Vice Chair (since January 2017); Chief Operating Officer and Executive Vice President (until January 2017)	N/A

INDEPENDENT TRUSTEES
John P. Kavanaugh (age 64)	Trustee and Chair of Trustees	January 2009	135	Private investor	N/A

Steven E. Buller (age 67)	Trustee	February 2014	135	Financial Accounting Standards Advisory Council, Chairman(2014-2015); Public Company Accounting Oversight Board, Standing Advisory Group, Member (until 2014); BlackRock, Inc. (investment management), Managing Director (until 2014), BlackRock Finco UK (investment management), Director (until 2014)	N/A

John A. Caroselli (age 64)	Trustee	March 2017	135	JC Global Advisors, LLC (management consulting), President (since 2015); First Capital Corporation (commercial finance), Executive Vice President (until 2015)	N/A

Maureen R. Goldfarb (age 63)	Trustee	January 2009	135	Private investor	N/A

Michael Hegarty (age 74)	Trustee	December 2004	135	Private investor	Rouse Properties Inc., Director (until 2016); Capmark Financial Group Inc., Director (until 2015)

Peter D. Jones (age 63)	Trustee	January 2019	135	Franklin Templeton Distributors, Inc. (investment management), President (until 2015); Franklin Templeton Institutional, LLC (investment management), Chairman (until 2015)	N/A

James W. Kilman, Jr. (age 57)	Trustee	January 2019	135	KielStrand Capital LLC (family office and merchant bank), Chief Executive Officer (since 2016); Morgan Stanley & Co. (financial services), Vice Chairman of Investment Banking,Co-Head of Diversified Financials Coverage – Financial Institutions Investment Banking Group (until 2016)	alpha-En Corporation, Director (since 2016)

MFS Massachusetts Investors Growth Stock Portfolio

Trustees and Officers – continued


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds overseen by the Trustee	Principal Occupations During the Past Five Years	Other Directorships During the Past Five Years (j)
Clarence Otis, Jr. (age 62)	Trustee	March 2017	135	Darden Restaurants, Inc., Chief Executive Officer (until 2014)	VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director; Federal Reserve Bank of Atlanta, Director (until 2015)

Maryanne L. Roepke (age 62)	Trustee	May 2014	135	American Century Investments (investment management), Senior Vice President and Chief Compliance Officer (until 2014)	N/A

Laurie J. Thomsen (age 61)	Trustee	March 2005	135	Private investor	The Travelers Companies, Director; Dycom Industries, Inc., Director (since 2015)


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds for which the Person is an Officer	Principal Occupations During the Past Five Years
OFFICERS
Christopher R. Bohane (k) (age 45)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Vice President and Assistant General Counsel

Kino Clark (k) (age 50)	Assistant Treasurer	January 2012	135	Massachusetts Financial Services Company, Vice President

John W. Clark, Jr. (k) (age 51)	Assistant Treasurer	April 2017	135	Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head – Treasurer’s Office (until February 2017)

Thomas H. Connors (k) (age 59)	Assistant Secretary and Assistant Clerk	September 2012	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Ethan D. Corey (k) (age 55)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel

David L. DiLorenzo (k) (age 50)	President	July 2005	135	Massachusetts Financial Services Company, Senior Vice President

Heidi W. Hardin (k) (age 51)	Secretary and Clerk	April 2017	135	Massachusetts Financial Services Company, Executive Vice President and General Counsel (since March 2017); Harris Associates (investment management), General Counsel (from September 2015 to January 2017); Janus Capital Management LLC (investment management), Senior Vice President and General Counsel (until September 2015)

Brian E. Langenfeld (k) (age 45)	Assistant Secretary and Assistant Clerk	June 2006	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Amanda S. Mooradian (k) (age 39)	Assistant Secretary and Assistant Clerk	September 2018	135	Massachusetts Financial Services Company, Assistant Vice President and Counsel

Susan A. Pereira (k) (age 48)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Kasey L. Phillips (k) (age 48)	Assistant Treasurer	September 2012	135	Massachusetts Financial Services Company, Vice President

Matthew A. Stowe (k) (age 44)	Assistant Secretary and Assistant Clerk	October 2014	135	Massachusetts Financial Services Company, Vice President and Assistant General Counsel

MFS Massachusetts Investors Growth Stock Portfolio

Trustees and Officers – continued


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds for which the Person is an Officer	Principal Occupations During the Past Five Years
Frank L. Tarantino (age 74)	Independent Senior Officer	June 2004	135	Tarantino LLC (provider of compliance services), Principal

Richard S. Weitzel (k) (age 48)	Assistant Secretary and Assistant Clerk	October 2007	135	Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel

Martin J. Wolin (k) (age 51)	Chief Compliance Officer	July 2015	135	Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer (since July 2015); Mercer (financial service provider), Chief Risk and Compliance Officer, North America and Latin America (until June 2015)

James O. Yost (k) (age 58)	Treasurer	September 1990	135	Massachusetts Financial Services Company, Senior Vice President

(h)

(j)	Directorships or trusteeships of companies required to report to the Securities and Exchange Commission (i.e., “public companies”).

(k)

Messrs. Buller, Hegarty, Kilman and Otis and Ms. Roepke are members of the Trust’s Audit Committee.

Each of the Interested Trustees and certain Officers hold comparable officer positions with certain affiliates of MFS.

The Statement of Additional Information for a Fund includes further information about the Trustees and is available without charge upon request by calling1-800-225-2606.


Investment Adviser Massachusetts Financial Services Company 111 Huntington Avenue Boston, MA 02199-7618		Custodian State Street Bank and Trust Company 1 Lincoln Street Boston, MA 02111-2900
Distributor MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618		Independent Registered Public Accounting Firm Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116
Portfolio Manager(s) Jeffrey Constantino

MFS Massachusetts Investors Growth Stock Portfolio

BOARD REVIEW OF INVESTMENT ADVISORY AGREEMENT

Based on information provided by Broadridge and MFS, the Trustees reviewed the Fund’s total return investment performance as well as the Broadridge performance universe over various time periods. The Trustees placed particular emphasis on the total return performance of the Fund’s Initial Class shares in comparison to the performance of funds in its Broadridge performance universe over the three-year period ended December 31, 2017, which the Trustees believed was a long enough period to reflect differing market conditions. The total return performance of the Fund’s Initial Class shares was in the 5th quintile relative to the other funds in the universe for this three-year period (the 1st quintile being the best performers and the 5th quintile being the worst performers). The total return performance of the Fund’s Initial Class shares was in the 4th quintile for theone-year period and the 5th quintile for the five-year period ended December 31, 2017 relative to the Broadridge performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.

The Trustees expressed concern to MFS about the substandard investment performance of the Fund and the Fund’s retail counterpart, MFS Massachusetts Investors Growth Stock Fund, which has substantially similar investment strategies and experienced substantially similar investment performance as the Fund. In the course of their deliberations, the Trustees took into account information provided by MFS in connection with the contract review meetings, as well as during investment review meetings conducted with portfolio management personnel during the course of the year as to MFS’ efforts to improve the performance of the

MFS Massachusetts Investors Growth Stock Portfolio

Board Review of Investment Advisory Agreement – continued

In assessing the reasonableness of the Fund’s advisory fee, the Trustees considered, among other information, the Fund’s advisory fee and the total expense ratio of the Fund’s Initial Class shares as a percentage of average daily net assets and the advisory fee and total expense ratios of peer groups of funds based on information provided by Broadridge. The Trustees considered that MFS currently observes an expense limitation for the Fund, which may not be changed without the Trustees’ approval. The Trustees also considered that, according to the data provided by Broadridge (which takes into account any fee reductions or expense limitations that were in effect during the Fund’s last fiscal year), the Fund’s effective advisory fee rate was higher than the Broadridge expense group median and the Fund’s total expense ratio was approximately at the Broadridge expense group median.

The Trustees also considered whether the Fund may benefit from any economies of scale in the management of the Fund in the event of growth in assets of the Fund and/or growth in assets of the MFS Funds as a whole. They noted that the Fund’s advisory fee rate schedule is subject to a contractual breakpoint that reduces the Fund’s advisory fee rate on average daily net assets over $1 billion. The Trustees also noted that MFS has agreed in writing to waive a portion of the management fees of certain MFS Funds, including the Fund, if the total combined assets of certain funds within the MFS Funds’ complex increase above agreed upon thresholds (the “group fee waiver”), enabling the Fund’s shareholders to share in the benefits from any economies of scale at the complex level. The group fee waiver is reviewed and renewed annually between the Board and MFS. The Trustees concluded that the breakpoint and the group fee waiver were sufficient to allow the Fund to benefit from economies of scale as its assets and overall complex assets grow.

MFS Massachusetts Investors Growth Stock Portfolio

PROXY VOTING POLICIES AND INFORMATION

QUARTERLY PORTFOLIO DISCLOSURE

FURTHER INFORMATION

INFORMATION ABOUT FUND CONTRACTS AND LEGAL CLAIMS

FEDERAL TAX INFORMATION (unaudited)

The following information is provided pursuant to provisions of the Internal Revenue Code.

The fund designates $53,116,000 as capital gain dividends paid during the fiscal year.

For corporate shareholders, 92.38% of the ordinary income dividends paid during the fiscal year qualify for the corporate dividends received deduction.

rev. 3/16



FACTS		WHAT DOES MFS DO WITH YOUR PERSONAL INFORMATION?


Why?		Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.

What?

The types of personal information we collect and share depend on the product or service you have with us. This information can include:

• Social Security number and account balances

• Account transactions and transaction history

• Checking account information and wire transfer instructions

When you areno longer our customer, we continue to share your information as described in this notice.


How?		All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons MFS chooses to share; and whether you can limit this sharing.


Reasons we can share your personal information	Does MFS share?	Can you limit this sharing?
For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes – to offer our products and services to you	No	We don’t share
For joint marketing with other financial companies	No	We don’t share
For our affiliates’ everyday business purposes – information about your transactions and experiences	No	We don’t share
For our affiliates’ everyday business purposes – information about your creditworthiness	No	We don’t share
For nonaffiliates to market to you	No	We don’t share



Questions?		Call800-225-2606 or go tomfs.com.


Page 2


Who we are
Who is providing this notice?		MFS Funds, MFS Investment Management, MFS Institutional Advisors, Inc., and MFS Heritage Trust Company.


What we do
How does MFS protect my personal information?		To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include procedural, electronic, and physical safeguards for the protection of the personal information we collect about you.
How does MFS collect my personal information?		We collect your personal information, for example, when you • open an account or provide account information • direct us to buy securities or direct us to sell your securities • make a wire transfer We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can’t I limit all sharing?		Federal law gives you the right to limit only • sharing for affiliates’ everyday business purposes – information about your creditworthiness • affiliates from using your information to market to you • sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing.


Definitions
Affiliates		Companies related by common ownership or control. They can be financial and nonfinancial companies. • MFS does not share personal information with affiliates, except for everyday business purposes as described on page one of this notice.
Nonaffiliates		Companies not related by common ownership or control. They can be financial and nonfinancial companies. • MFS does not share with nonaffiliates so they can market to you.
Joint marketing		A formal agreement between nonaffiliated financial companies that together market financial products or services to you. • MFS doesn’t jointly market.


Other important information
If you own an MFS product or receive an MFS service in the name of a third party such as a bank or broker-dealer, their privacy policy may apply to you instead of ours.

LOGO

Annual Report

December 31, 2018

LOGO

MFS^® Research International Portfolio

LOGO

MFS^® Variable Insurance Trust II

RSS-ANN

MFS® Research International Portfolio

CONTENTS

The report is prepared for the general information of contract owners. 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 OR CREDIT UNION GUARANTEE• NOT A DEPOSIT• NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY OR NCUA/NCUSIF

MFS Research International Portfolio

LETTER FROM THE EXECUTIVE CHAIRMAN

LOGO

Dear Contract Owners:

Respectfully,

LOGO

Robert J. Manning

Executive Chairman

MFS Investment Management

February 15, 2019

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

MFS Research International Portfolio

PORTFOLIO COMPOSITION

Portfolio structure

LOGO


Top ten holdings
Nestle S.A.			3.0%
Roche Holding AG			2.8%
Linde PLC			2.2%
Schneider Electric S.A.			1.9%
Novo Nordisk A.S., “B”			1.9%
AIA Group Ltd.			1.8%
UBS AG			1.6%
BP PLC			1.6%
Akzo Nobel N.V.			1.6%
Bayer AG			1.5%

Global equity sectors (k)
Capital Goods			22.8%
Financial Services			22.7%
Health Care			11.0%
Technology			10.1%
Consumer Staples			9.8%
Energy			9.5%
Consumer Cyclicals			8.5%
Telecommunications/Cable Television			3.9%


Issuer country weightings (x)
Japan			18.3%
United Kingdom			12.6%
Switzerland			12.5%
France			9.1%
United States			8.8%
Germany			7.6%
Hong Kong			3.7%
Australia			3.2%
Spain			3.0%
Other Countries			21.2%

Currency exposure weightings (y)
Euro			31.0%
Japanese Yen			18.3%
Swiss Franc			12.5%
British Pound Sterling			11.8%
United States Dollar			7.9%
Hong Kong Dollar			4.2%
Australian Dollar			3.2%
Danish Krone			2.2%
Canadian Dollar			2.2%
Other Currencies			6.7%

(k)	The sectors set forth above and the associated portfolio composition are based on MFS’ own custom sector classification methodology.

(x)	Represents the portfolio’s exposure to issuer countries as a percentage of a portfolio’s net assets. For purposes of this presentation, United States includes Cash & Cash Equivalents.

(y)	Represents the portfolio’s exposure to a particular currency as a percentage of a portfolio’s net assets. For purposes of this presentation, United States Dollar includes Cash & Cash Equivalents.

Percentages are based on net assets as of December 31, 2018.

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

MFS Research International Portfolio

MANAGEMENT REVIEW

Summary of Results

For the twelve months ended December 31, 2018, Initial Class shares of the MFS Research International Portfolio (“fund”) provided a total return of –14.12%, while Service Class shares of the fund provided a total return of –14.32%. These compare with a return of –13.79% over the same period for the fund’s benchmark, the MSCI EAFE Index (net div).

Market Environment

During the reporting period, the US Federal Reserve raised interest rates by 100 basis points, bringing the total number of rate hikes to nine since the central bank began to normalize monetary policy in late 2015. Economic growth rates in the US, Eurozone and Japan remained above trend, despite a slowing in global growth, particularly toward the end of the period. Inflation remained contained, particularly outside the US. Late in the period, the European Central Bank halted its asset purchase program but issued forward guidance that it does not expect to raise interest rates at least until after the summer of 2019. The Bank of England (once) and the Bank of Canada (three times) each raised rates during the period. The European political backdrop became a bit more volatile, late in the period, spurred by concerns over cohesion in the Eurozone after the election of an anti-establishment, Eurosceptic coalition government in Italy and widespread protests over stagnant wage growth in France.

Detractors from Performance

Stock selection in theconsumer cyclicalssector held back performance relative to the MSCI EAFE Index. Within this sector, an overweight position in general merchandise retailer Sundrug (Japan) weighed on relative returns. Shares of Sundrug fell as the company reported weaker-than-expected operating profit in its drugstore segment, resulting from a decline in same-store sales and an increase in operating and overhead expenses.

Security selection in both thehealth careandconsumer staplessectors also hindered relative results. Within thehealth caresector, an overweight position in pharmaceutical company Bayer AG (Germany), and not owning shares of pharmaceutical firm Novartis (Switzerland), dampened relative performance. The stock price of Bayer depreciated after a court awarded damages to an individual who claimed to have contractedNon-Hodgkin’s Lymphoma cancer from glyphosate herbicide, which was discovered and branded as Roundup by Monsanto, whom Bayer acquired in 2018. The stock traded significantly lower after the news, as investors appeared to have been concerned that more lawsuits would be filed against Bayer. Within theconsumer staples sector, an overweight position in tobacco distributor British American Tobacco (United Kingdom) hindered relative returns. The share price of British American Tobacco reacted negatively to news that the US Federal Drug Administration was considering plans to ban the sale of menthol cigarettes, in addition to a ban on flavorede-cigarettes, citing concerns over nicotine addiction.

Stocks in other sectors that detracted from relative performance included overweight positions in building products supplier Toto (Japan), private banking services provider Julius Baer Group (Switzerland), industrial process technology manufacturer GEA Group (Germany), investment management and banking firm UBS (Switzerland), global banking group BNP Paribas (France) and banking and financial services firm Intesa Sanpaolo (Italy). The share price of Toto suffered from lower-than-expected operating profits fueled by weakness in the company’s domestic housing equipment business and subdued sales growth in China.

Contributors to Performance

Stock selection in thecapital goodssector boosted relative performance. Within this sector, overweight positions in global engineering company GKN (h) (United Kingdom), industrial gas supplier Linde (Germany) and parcel delivery services company Yamato Holdings Co. (Japan) contributed to relative results. The share price of GKN advanced after investment company Melrose Industries, which specializes in the acquisition and performance improvement of underperforming businesses, made a hostile offer to buy GKN.

MFS Research International Portfolio

Management Review – continued

Stock selection in both thefinancial servicesandtechnologysectors also aided relative returns. Within thefinancial servicessector, the fund’s position in risk management and human capital consulting services provider Aon (b), debit and credit transaction processing company Mastercard (b) and banking firm HDFC Bank (b) (India) helped relative performance. The share price of Aon benefited from solid earnings results driven by acceleration in organic growth and margin expansion, as well as solid free cash flow. Within thetechnologysector, holdings of semiconductor company Mellanox Technologies (b), and an overweight position in telecommunications equipment provider Ericsson (h) (Sweden), boosted relative returns. The share price of Mellanox Technologies appreciated following better-than-expected financial results, driven by strong demand for Ethernet products, which appeared to have helped overcome concerns about a slowdown in cloud computing. Additionally, management raised its future guidance, which further supported the stock.

Elsewhere, an overweight position in medical products and equipment manufacturer Terumo (Japan) bolstered relative performance after the company reported strong sales growth during the period.

Respectfully,

Portfolio Manager(s)

Jose Luis Garcia, Victoria Higley, Camille Humphries Lee, and Thomas Melendez

(b)	Security is not a benchmark constituent.

(h)	Security was not held in the portfolio at period end.

Note to Shareholders: Effective September 1, 2018, Camille Humphries Lee became a Portfolio Manager of the Fund. Effective March 31, 2019, Thomas Melendez will no longer be a Portfolio Manager of the Fund.

MFS Research International Portfolio

PERFORMANCE SUMMARY THROUGH 12/31/18

Growth of a Hypothetical $10,000 Investment

LOGO

Total Returns through 12/31/18

Average annual total returns


	Share Class	Class Inception Date	1-yr	5-yr	10-yr
	Initial Class	5/06/98	(14.12)%	(0.03)%	5.99%
	Service Class	8/24/01	(14.32)%	(0.28)%	5.72%

Comparative benchmark(s)
	MSCI EAFE Index (net div) (f)		(13.79)%	0.53%	6.32%

(f)	Source: FactSet Research Systems Inc.

Benchmark Definition(s)

MSCI EAFE (Europe, Australasia, Far East) Index (net div) – a market capitalization-weighted index that is designed to measure equity market performance in the developed markets, excluding the U.S. and Canada.

It is not possible to invest directly in an index.

Notes to Performance Summary

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

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

MFS Research International Portfolio

EXPENSE TABLE

Fund Expenses Borne by the Contract Holders during the Period,

July 1, 2018 through December 31, 2018

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period July 1, 2018 through December 31, 2018.

Actual Expenses

Hypothetical Example for Comparison Purposes


Share Class		Annualized Expense Ratio		Beginning Account Value 7/01/18		Ending Account Value 12/31/18		Expenses Paid During Period (p) 7/01/18-12/31/18
Initial Class	Actual		0.96%		$1,000.00		$873.09		$4.53
Initial Class	Hypothetical (h)		0.96%		$1,000.00		$1,020.37		$4.89
Service Class	Actual		1.21%		$1,000.00		$871.83		$5.71
Service Class	Hypothetical (h)		1.21%		$1,000.00		$1,019.11		$6.16

(h)	5% class return per year before expenses.

(p)	“Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect theone-half year period).

MFS Research International Portfolio

PORTFOLIO OF INVESTMENTS – 12/31/18

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



Issuer	Shares/Par		Value ($)
COMMON STOCKS – 98.3%
Airlines – 1.0%
Aena S.A.		17,472	$	2,717,517
Malaysia Airports Holdings Berhad		527,500		1,069,679

			$	3,787,196

Alcoholic Beverages – 0.4%
Ambev S.A., ADR		357,495	$	1,401,380

Apparel Manufacturers – 2.0%
Adidas AG		8,723	$	1,822,974
LVMH Moet Hennessy Louis Vuitton SE		18,296		5,412,553

			$	7,235,527

Automotive – 2.0%
Koito Manufacturing Co. Ltd.		72,500	$	3,698,415
USS Co. Ltd.		229,900		3,836,990

			$	7,535,405

Broadcasting – 0.5%
WPP PLC		182,820	$	1,972,767

Brokerage & Asset Managers – 1.0%
Euronext N.V.		5,236	$	301,757
TMX Group Ltd.		63,344		3,281,806

			$	3,583,563

Business Services – 2.0%
Cerved Information Solutions S.p.A.		99,149	$	812,808
Cognizant Technology Solutions Corp., “A”		65,132		4,134,579
Nomura Research Institute Ltd.		65,000		2,389,387

			$	7,336,774

Computer Software – 0.8%
Check Point Software Technologies Ltd. (a)		27,494	$	2,822,259

Computer Software – Systems – 2.2%
Amadeus IT Group S.A.		44,472	$	3,100,028
EPAM Systems, Inc. (a)		28,507		3,307,097
Hitachi Ltd.		71,900		1,911,232

			$	8,318,357

Conglomerates – 0.5%
Melrose Industries PLC		808,608	$	1,688,723

Construction – 1.9%
Techtronic Industries Co. Ltd.		639,000	$	3,394,726
Toto Ltd.		103,300		3,550,900

			$	6,945,626

Consumer Products – 3.2%
Kao Corp.		40,500	$	2,985,899
L’Oréal		17,795		4,102,190
Reckitt Benckiser Group PLC		62,532		4,792,558

			$	11,880,647

Containers – 1.0%
Brambles Ltd.		526,337	$	3,762,863



Issuer	Shares/Par		Value ($)
COMMON STOCKS – continued
Electrical Equipment – 2.7%
Legrand S.A.		52,193	$	2,948,146
Schneider Electric S.A.		102,075		6,984,397

			$	9,932,543

Electronics – 2.9%
Mellanox Technologies Ltd. (a)		27,116	$	2,504,976
NVIDIA Corp.		4,409		588,601
Samsung Electronics Co. Ltd.		36,364		1,258,219
Silicon Motion Technology Corp., ADR		27,375		944,437
Taiwan Semiconductor Manufacturing Co. Ltd.		729,804		5,354,160

			$	10,650,393

Energy – Independent – 1.6%
Cairn Energy PLC (a)		772,587	$	1,477,109
Caltex Australia Ltd.		128,809		2,311,714
Oil Search Ltd.		398,183		2,008,094

			$	5,796,917

Energy – Integrated – 3.3%
BP PLC		927,184	$	5,861,080
Eni S.p.A.		214,604		3,380,392
Galp Energia SGPS S.A., “B”		198,891		3,143,595

			$	12,385,067

Food & Beverages – 4.1%
Danone S.A.		57,981	$	4,086,215
Nestle S.A.		133,982		10,892,850

			$	14,979,065

Food & Drug Stores – 1.7%
Sundrug Co. Ltd.		115,300	$	3,429,657
Tesco PLC		1,189,906		2,883,159

			$	6,312,816

Gaming & Lodging – 0.5%
Paddy Power Betfair PLC		22,067	$	1,800,102

Insurance – 5.9%
AIA Group Ltd.		816,400	$	6,776,834
Aon PLC		35,170		5,112,311
Hiscox Ltd.		179,486		3,708,408
Swiss Re Ltd.		27,303		2,508,653
Zurich Insurance Group AG		12,963		3,873,210

			$	21,979,416

Internet – 1.4%
Baidu, Inc., ADR (a)		4,527	$	717,982
NAVER Corp. (a)		21,986		2,395,545
Scout24 AG		42,724		1,965,873

			$	5,079,400

Machinery & Tools – 4.9%
Daikin Industries Ltd.		49,800	$	5,240,509
GEA Group AG		104,077		2,683,039

MFS Research International Portfolio

Portfolio of Investments – continued



Issuer	Shares/Par		Value ($)
COMMON STOCKS – continued
Machinery & Tools – continued
Kubota Corp.		314,600	$	4,429,828
Ritchie Bros. Auctioneers, Inc.		63,208		2,067,733
Schindler Holding AG		18,226		3,621,000

			$	18,042,109

Major Banks – 5.5%
Bankia S.A.		344,851	$	1,011,489
Barclays PLC		1,764,504		3,385,250
BNP Paribas		94,977		4,295,664
Erste Group Bank AG		50,438		1,678,780
Mitsubishi UFJ Financial Group, Inc.		819,200		4,039,590
UBS AG		485,575		6,061,414

			$	20,472,187

Medical & Health Technology & Services – 0.5%
Sonic Healthcare Ltd.		130,299	$	2,029,169

Medical Equipment – 2.9%
EssilorLuxottica		42,439	$	5,370,573
Terumo Corp.		95,300		5,353,899

			$	10,724,472

Metals & Mining – 1.2%
Rio Tinto Ltd.		92,362	$	4,391,127

Natural Gas – Distribution – 0.6%
China Resources Gas Group Ltd.		526,000	$	2,082,370

Natural Gas – Pipeline – 1.2%
APA Group		283,087	$	1,694,834
Enbridge, Inc.		83,921		2,607,010

			$	4,301,844

Network & Telecom – 0.8%
LM Ericsson Telephone Co., “B”		357,093	$	3,147,419

Other Banks & Diversified Financials – 7.7%
Aeon Credit Service Co. Ltd.		214,500	$	3,853,228
AIB Group PLC		775,371		3,269,242
HDFC Bank Ltd.		163,980		4,983,404
Intesa Sanpaolo S.p.A.		2,190,496		4,854,742
Julius Baer Group Ltd.		96,924		3,463,461
Jyske Bank A.S.		33,039		1,194,202
KBC Groep N.V.		63,938		4,152,204
Mastercard, Inc., “A”		13,308		2,510,554

			$	28,281,037

Pharmaceuticals – 7.6%
Bayer AG		81,104	$	5,627,531
Novo Nordisk A.S., “B”		149,504		6,872,357
Roche Holding AG		41,446		10,248,528
Santen Pharmaceutical Co. Ltd.		367,900		5,265,006

			$	28,013,422

Printing & Publishing – 1.3%
RELX Group PLC		235,744	$	4,853,762



Issuer	Shares/Par		Value ($)
COMMON STOCKS – continued
Real Estate – 2.5%
Grand City Properties S.A.		209,685	$	4,552,671
LEG Immobilien AG		45,446		4,744,595

			$	9,297,266

Restaurants – 0.5%
Yum China Holdings, Inc.		55,865	$	1,873,153

Specialty Chemicals – 8.0%
Akzo Nobel N.V.		71,750	$	5,787,411
Croda International PLC		81,860		4,888,270
Kansai Paint Co. Ltd.		59,400		1,140,013
Linde PLC		51,651		8,199,267
Nitto Denko Corp.		38,000		1,897,268
Sika AG		29,900		3,800,092
Symrise AG		49,794		3,679,819

			$	29,392,140

Specialty Stores – 0.9%
Dufry AG		17,546	$	1,666,408
Just Eat PLC (a)		247,851		1,853,765

			$	3,520,173

Telecommunications – Wireless – 3.4%
Advanced Info Service PLC		420,000	$	2,225,123
KDDI Corp.		210,600		5,018,614
SoftBank Corp.		61,200		4,033,983
Tele2 AB, “B”		110,996		1,418,293

			$	12,696,013

Telephone Services – 0.5%
Hellenic Telecommunications Organization S.A.		166,252	$	1,813,400

Tobacco – 2.2%
British American Tobacco PLC		151,091	$	4,814,514
Japan Tobacco, Inc.		135,200		3,207,608

			$	8,022,122

Trucking – 0.7%
Yamato Holdings Co. Ltd.		89,100	$	2,428,087

Utilities – Electric Power – 2.8%
CLP Holdings Ltd.		294,000	$	3,322,776
E.ON AG		302,094		2,986,013
Iberdrola S.A.		507,086		4,077,413

			$	10,386,202

Total Common Stocks (Identified Cost, $372,115,399)			$	362,954,280


INVESTMENT COMPANIES (h) – 1.5%
Money Market Funds – 1.5%
MFS Institutional Money Market Portfolio, 2.4% (v) (Identified Cost, $5,381,437)		5,381,595	$	5,381,057

OTHER ASSETS, LESS LIABILITIES – 0.2%				839,279

NET ASSETS – 100.0%			$	369,174,616

MFS Research International Portfolio

Portfolio of Investments – continued

(a)

Non-income producing security.

(h)

(v)

The following abbreviations are used in this report and are defined:

ADR

American Depositary Receipt

PLC

Public Limited Company

See Notes to Financial Statements

MFS Research International Portfolio

FINANCIAL STATEMENTS ^| STATEMENT OF ASSETS AND LIABILITIES

This statement represents your fund’s balance sheet, which details the assets and liabilities comprising the total value of the fund.


At 12/31/18

Assets
Investments in unaffiliated issuers, at value (identified cost, $372,115,399)			$362,954,280
Investments in affiliated issuers, at value (identified cost, $5,381,437)			5,381,057
Foreign currency, at value (identified cost, $2,955)			2,958
Receivables for
Investments sold			1,434,842
Fund shares sold			180,345
Interest and dividends			1,093,209
Other assets			2,586
Total assets			$371,049,277

Liabilities
Payables for
Investments purchased			$1,632,897
Fund shares reacquired			72,054
Payable to affiliates
Investment adviser			34,165
Shareholder servicing costs			112
Distribution and/or service fees			1,815
Payable for independent Trustees’ compensation			15
Deferred country tax expense payable			22,452
Accrued expenses and other liabilities			111,151
Total liabilities			$1,874,661
Net assets			$369,174,616

Net assets consist of
Paid-in capital			$355,936,702
Total distributable earnings (loss)			13,237,914
Net assets			$369,174,616
Shares of beneficial interest outstanding			26,291,245



	Net assets		Shares outstanding		Net asset value per share
Initial Class		$302,385,513		21,486,954		$14.07
Service Class		66,789,103		4,804,291		13.90

See Notes to Financial Statements

MFS Research International Portfolio

FINANCIAL STATEMENTS ^| STATEMENT OF OPERATIONS

This statement describes how much your fund earned in investment income and accrued in expenses. It also describes any gains and/or losses generated by fund operations.


Year ended 12/31/18

Net investment income (loss)
Income
Dividends	$10,974,295
Dividends from affiliated issuers	73,635
Income on securities loaned	51,882
Other	2,964
Foreign taxes withheld	(1,014,909	)
Total investment income	$10,087,867
Expenses
Management fee	$3,662,429
Distribution and/or service fees	185,964
Shareholder servicing costs	13,830
Administrative services fee	67,824
Independent Trustees’ compensation	7,415
Custodian fee	101,456
Shareholder communications	28,146
Audit and tax fees	62,169
Legal fees	3,584
Miscellaneous	29,708
Total expenses	$4,162,525
Reduction of expenses by investment adviser	(41,516	)
Net expenses	$4,121,009
Net investment income (loss)	$5,966,858

Realized and unrealized gain (loss)
Realized gain (loss) (identified cost basis)
Unaffiliated issuers (net of $8,062 country tax)	$17,735,964
Affiliated issuers	893
Foreign currency	(49,881	)
Net realized gain (loss)	$17,686,976
Change in unrealized appreciation or depreciation
Unaffiliated issuers (net of $24,519 decrease in deferred country tax)	$(82,699,072	)
Affiliated issuers	(380	)
Translation of assets and liabilities in foreign currencies	(12,763	)
Net unrealized gain (loss)	$(82,712,215	)
Net realized and unrealized gain (loss)	$(65,025,239	)
Change in net assets from operations	$(59,058,381	)

See Notes to Financial Statements

MFS Research International Portfolio

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
	12/31/18			12/31/17
Change in net assets
From operations
Net investment income (loss)		$5,966,858			$5,853,114
Net realized gain (loss)		17,686,976			26,063,324
Net unrealized gain (loss)		(82,712,215	)		71,473,238
Change in net assets from operations		$(59,058,381	)		$103,389,676
Total distributions to shareholders (a)		$(16,070,335	)		$(7,282,212	)
Change in net assets from fund share transactions		$22,056,598			$(75,751,483	)
Total change in net assets		$(53,072,118	)		$20,355,981
Net assets
At beginning of period		422,246,734			401,890,753
At end of period (b)		$369,174,616			$422,246,734

(a)	Distributions from net investment income and from net realized gain are no longer required to be separately disclosed. See Note 2. For the year ended December 31, 2017, distributions from net investment income were $7,282,212.

(b)	Parenthetical disclosure of undistributed net investment income is no longer required. See Note 2. For the year ended December 31, 2017, end of period net assets included undistributed net investment income of $5,791,372.

See Notes to Financial Statements

MFS Research International Portfolio

FINANCIAL STATEMENTS ^| FINANCIAL HIGHLIGHTS


Initial Class	Year ended

	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14

Net asset value, beginning of period		$17.05			$13.54			$13.85			$14.56			$16.09

Income (loss) from investment operations
Net investment income (loss) (d)		$0.25			$0.22			$0.25	(c)		$0.24			$0.39
Net realized and unrealized gain (loss)		(2.56	)		3.59			(0.34	)		(0.52	)		(1.46	)
Total from investment operations		$(2.31	)		$3.81			$(0.09	)		$(0.28	)		$(1.07	)

Less distributions declared to shareholders
From net investment income		$(0.25	)		$(0.30	)		$(0.22	)		$(0.30	)		$(0.30	)
From net realized gain		(0.42	)		—			—			(0.13	)		(0.16	)
Total distributions declared to shareholders		$(0.67	)		$(0.30	)		$(0.22	)		$(0.43	)		$(0.46	)
Net asset value, end of period (x)		$14.07			$17.05			$13.54			$13.85			$14.56
Total return (%) (k)(r)(s)(x)		(14.12	)		28.29			(0.70	)(c)		(1.96	)		(6.88	)

Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)		0.98			1.00			0.95	(c)		1.00			1.00
Expenses after expense reductions (f)		0.97			0.99			0.94	(c)		1.00			0.99
Net investment income (loss)		1.51			1.44			1.87	(c)		1.61			2.49
Portfolio turnover		25			27			41			38			27
Net assets at end of period (000 omitted)		$302,386			$341,613			$318,753			$305,502			$253,001

Service Class	Year ended

	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14

Net asset value, beginning of period		$16.84			$13.38			$13.68			$14.39			$15.91

Income (loss) from investment operations
Net investment income (loss) (d)		$0.21			$0.19			$0.21	(c)		$0.20			$0.36
Net realized and unrealized gain (loss)		(2.53	)		3.52			(0.33	)		(0.51	)		(1.47	)
Total from investment operations		$(2.32	)		$3.71			$(0.12	)		$(0.31	)		$(1.11	)

Less distributions declared to shareholders
From net investment income		$(0.20	)		$(0.25	)		$(0.18	)		$(0.27	)		$(0.25	)
From net realized gain		(0.42	)		—			—			(0.13	)		(0.16	)
Total distributions declared to shareholders		$(0.62	)		$(0.25	)		$(0.18	)		$(0.40	)		$(0.41	)
Net asset value, end of period (x)		$13.90			$16.84			$13.38			$13.68			$14.39
Total return (%) (k)(r)(s)(x)		(14.32	)		27.90			(0.91	)(c)		(2.20	)		(7.16	)

Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)		1.23			1.25			1.20	(c)		1.25			1.25
Expenses after expense reductions (f)		1.22			1.24			1.19	(c)		1.25			1.24
Net investment income (loss)		1.27			1.26			1.58	(c)		1.36			2.30
Portfolio turnover		25			27			41			38			27
Net assets at end of period (000 omitted)		$66,789			$80,634			$83,138			$97,958			$74,383

See Notes to Financial Statements

MFS Research International Portfolio

Financial Highlights – continued

(c)	Amount reflects aone-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher.

(d)	Per share data is based on average shares outstanding.

(f)	Ratios do not reflect reductions from fees paid indirectly, if applicable.

(k)	The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown.

(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.

(x)	The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes.

See Notes to Financial Statements

MFS Research International Portfolio

NOTES TO FINANCIAL STATEMENTS

(1)

Business and Organization

MFS Research International Portfolio (the fund) is a diversified series of MFS Variable Insurance Trust II (the trust). The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as anopen-end management investment company. The shareholders of each series of the trust are separate accounts of insurance companies, which offer variable annuity and/or life insurance products, and qualified retirement and pension plans.

(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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated subsequent events occurring after the date of the fund’s Statement of Assets and Liabilities through the date that the financial statements were issued. The fund invests in foreign securities. Investments in foreign securities are vulnerable to the effects of changes in the relative values of the local currency and the U.S. dollar and to the effects of changes in each country’s market, economic, industrial, political, regulatory, geopolitical, and other conditions.

MFS Research International Portfolio

Notes to Financial Statements – continued


Financial Instruments	Level 1		Level 2		Level 3		Total
Equity Securities:
Japan		$—		$67,710,115		$—		$67,710,115
United Kingdom		46,570,490		—		—		46,570,490
Switzerland		—		46,135,618		—		46,135,618
France		33,501,493		—		—		33,501,493
Germany		28,062,514		—		—		28,062,514
United States		26,357,386		—		—		26,357,386
Hong Kong		13,494,336		—		—		13,494,336
Australia		11,806,675		—		—		11,806,675
Spain		10,906,447		—		—		10,906,447
Other Countries		55,043,307		23,365,899		—		78,409,206
Mutual Funds		5,381,057		—		—		5,381,057
Total		$231,123,705		$137,211,632		$—		$368,335,337

For further information regarding security characteristics, see the Portfolio of Investments.

MFS Research International Portfolio

Notes to Financial Statements – continued

will, for the benefit of the fund, either purchase securities identical to those loaned or, when such purchase is commercially impracticable, pay the fund the market value of the loaned securities. In return, the lending agent assumes the fund’s rights to the related collateral. If the collateral value is less than the cost to purchase identical securities, the lending agent is responsible for the shortfall, but only to the extent that such shortfall is not due to a decline in collateral value resulting from collateral reinvestment for which the fund bears the risk of loss. A portion of the income generated upon investment of the collateral is remitted to the Borrowers, and the remainder is allocated between the fund and the lending agent. On loans collateralized by U.S. Treasury and/or federal agency obligations, a fee is received from the Borrower, and is allocated between the fund and the lending agent. Income from securities lending is separately reported in the Statement of Operations. The dividend and interest income earned on the securities loaned is accounted for in the same manner as other dividend and interest income. At December 31, 2018, there were no securities on loan or collateral outstanding.

Book/tax differences primarily relate to wash sale loss deferrals.

The tax character of distributions declared to shareholders for the last two fiscal years is as follows:


	Year ended 12/31/18		Year ended 12/31/17
Ordinary income (including any short-term capital gains)		$10,715,230		$7,282,212
Long-term capital gains		5,355,105		—
Total distributions		$16,070,335		$7,282,212

MFS Research International Portfolio

Notes to Financial Statements – continued

The federal tax cost and the tax basis components of distributable earnings were as follows:


As of 12/31/18

Cost of investments	$378,146,938
Gross appreciation	37,523,283
Gross depreciation	(47,334,884	)
Net unrealized appreciation (depreciation)	$(9,811,601	)

Undistributed ordinary income	5,843,260
Undistributed long-term capital gain	17,244,963
Other temporary differences	(38,708	)


	From net investment income				From net realized gain

	Year ended 12/31/18		Year ended 12/31/17		Year ended 12/31/18		Year ended 12/31/17
Initial Class		$4,990,946		$6,031,816		$8,444,733		$—
Service Class		846,065		1,250,396		1,788,591		—
Total		$5,837,011		$7,282,212		$10,233,324		$—

(3)

Transactions with Affiliates


Up to $1 billion			0.90%
In excess of $1 billion and up to $2 billion			0.80%
In excess of $2 billion			0.70%

MFS has agreed in writing to reduce its management fee by a specified amount if certain MFS mutual fund assets exceed thresholds agreed to by MFS and the fund’s Board of Trustees. For the year ended December 31, 2018, this management fee reduction amounted to $38,743, which is included in the reduction of total expenses in the Statement of Operations. The management fee incurred for the year ended December 31, 2018 was equivalent to an annual effective rate of 0.89% of the fund’s average daily net assets.

For the period from January 1, 2018 through July 31, 2018, the investment adviser had agreed in writing to pay a portion of the fund’s total annual operating expenses, excluding interest, taxes, extraordinary expenses, brokerage and transaction costs, andinvestment-related expenses, such that total annual operating expenses did not exceed 1.00% of average daily net assets for the Initial Class shares and 1.25% of average daily net assets for the Service Class shares. This written agreement terminated on July 31, 2018. For the period from January 1, 2018 through July 31, 2018, the fund’s actual operating expenses did not exceed the limit and therefore, the investment adviser did not pay any portion of the fund’s expenses related to this agreement. Effective August 1, 2018, the investment adviser has agreed in writing to pay a portion of the fund’s total annual operating expenses, excluding interest, taxes, extraordinary expenses, brokerage and transaction costs, and investment-related expenses, such that total annual operating expenses do not exceed 0.96% of average daily net assets for the Initial Class shares and 1.21% of average daily net assets for the Service Class shares. This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until April 30, 2020. For the period from August 1, 2018 through December 31, 2018, this reduction amounted to $2,773, which is included in the reduction of total expenses in the Statement of Operations.

MFS Research International Portfolio

Notes to Financial Statements – continued

Shareholder Servicing Agent– MFS Service Center, Inc. (MFSC), a wholly-owned subsidiary of MFS, receives a fee from the fund for its services as shareholder servicing agent. For the year ended December 31, 2018, the fee was $12,909, which equated to 0.0032% annually of the fund’s average daily net assets. MFSC also receives payment from the fund forout-of-pocket expenses paid by MFSC on behalf of the fund. For the year ended December 31, 2018, these costs amounted to $921.

Other– This fund and certain other funds managed by MFS (the funds) have entered into a service agreement (the ISO Agreement) which provides for payment of fees solely by the funds to Tarantino LLC in return for the provision of services of an Independent Senior Officer (ISO) for the funds. Frank L. Tarantino serves as the ISO and is an officer of the funds and the sole member of Tarantino LLC. The funds can terminate the ISO Agreement with Tarantino LLC at any time under the terms of the ISO Agreement. For the year ended December 31, 2018, the fee paid by the fund under this agreement was $693 and is included in “Miscellaneous” expense in the Statement of Operations. MFS has agreed to bear all expenses associated with office space, other administrative support, and supplies provided to the ISO.

The fund is permitted to engage in purchase and sale transactions with funds and accounts for which MFS serves as investment adviser orsub-adviser (“cross-trades”) pursuant to a policy adopted by the Board of Trustees. This policy has been designed to ensure that cross-trades conducted by the fund comply with Rule17a-7 under the Investment Company Act of 1940. During the year ended December 31, 2018, the fund engaged in purchase and sale transactions pursuant to this policy, which amounted to $123,843 and $1,166,002, respectively. The sales transactions resulted in net realized gains (losses) of $355,029.

(4)

Portfolio Securities

For the year ended December 31, 2018, purchases and sales of investments, other than short-term obligations, aggregated $106,693,726 and $99,439,474, respectively.

(5)

Shares of Beneficial Interest

The 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:


	Year ended 12/31/18						Year ended 12/31/17
	Shares			Amount			Shares			Amount
Shares sold
Initial Class		2,518,504			$40,932,805			996,797			$15,780,051
Service Class		915,577			14,411,304			667,310			10,100,721
		3,434,081			$55,344,109			1,664,107			$25,880,772
Shares issued to shareholders in reinvestment of distributions
Initial Class		816,759			$13,435,679			383,216			$6,031,816
Service Class		161,933			2,634,656			80,308			1,250,396
		978,692			$16,070,335			463,524			$7,282,212
Shares reacquired
Initial Class		(1,888,605	)		$(31,993,445	)		(4,873,959	)		$(75,287,115	)
Service Class		(1,061,519	)		(17,364,401	)		(2,173,107	)		(33,627,352	)
		(2,950,124	)		$(49,357,846	)		(7,047,066	)		$(108,914,467	)
Net change
Initial Class		1,446,658			$22,375,039			(3,493,946	)		$(53,475,248	)
Service Class		15,991			(318,441	)		(1,425,489	)		(22,276,235	)
		1,462,649			$22,056,598			(4,919,435	)		$(75,751,483	)

MFS Research International Portfolio

Notes to Financial Statements – continued

The fund is one of several mutual funds in which certain MFS funds may invest. The MFS funds do not invest in the underlying funds for the purpose of exercising management or control. At the end of the period, the MFS Moderate Allocation Portfolio, the MFS Growth Allocation Portfolio, and the MFS Conservative Allocation Portfolio were the owners of record of approximately 25%, 8%, and 5% respectively, of the value of outstanding voting shares of the fund.

(6)

Line of Credit

The fund and certain other funds managed by MFS participate in a $1.25 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 Overnight Bank Funding rate or daily one month LIBOR plus an agreed upon spread. A commitment fee, based on the average daily, unused portion of the committed line of credit, is allocated among the participating funds. In addition, the 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, at a rate equal to the Overnight Bank Funding rate plus an agreed upon spread. For the year ended December 31, 2018, the fund’s commitment fee and interest expense were $2,373 and $0, respectively, and are included in “Miscellaneous” expense in the Statement of Operations.

(7)

Investments in Affiliated Issuers


Affiliated Issuers		Beginning Shares/Par Amount			Acquisitions Shares/Par Amount		Dispositions Shares/Par Amount			Ending Shares/Par Amount

MFS Institutional Money Market Portfolio			710,680			61,141,961		(56,471,046	)		5,381,595

Affiliated Issuers	Realized Gain (Loss)	Change in Unrealized Appreciation/ Depreciation			Capital Gain Distributions		Dividend Income			Ending Value

MFS Institutional Money Market Portfolio	$893		$(380	)		$—		$73,635			$5,381,057

MFS Research International Portfolio

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees of MFS Variable Insurance Trust II and the Shareholders of MFS Research International Portfolio:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities of MFS Research International Portfolio (the “Fund”), including the portfolio of investments, as of December 31, 2018, the related statement 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of December 31, 2018, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

DELOITTE & TOUCHE LLP

Boston, Massachusetts

February 15, 2019

We have served as the auditor of one or more of the MFS investment companies since 1924.

MFS Research International Portfolio

TRUSTEES AND OFFICERS – IDENTIFICATION AND BACKGROUND


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds overseen by the Trustee	Principal Occupations During the Past Five Years	Other Directorships During the Past Five Years (j)
INTERESTED TRUSTEES
Robert J. Manning (k) (age 55)	Trustee	February 2004	135	Massachusetts Financial Services Company, Executive Chairman (since January 2017); Director; Chairman of the Board; Chief Executive Officer (until 2015);Co-Chief Executive Officer(2015-2016)	N/A

Robin A. Stelmach (k) (age 57)	Trustee	January 2014	135	Massachusetts Financial Services Company, Vice Chair (since January 2017); Chief Operating Officer and Executive Vice President (until January 2017)	N/A

INDEPENDENT TRUSTEES
John P. Kavanaugh (age 64)	Trustee and Chair of Trustees	January 2009	135	Private investor	N/A

Steven E. Buller (age 67)	Trustee	February 2014	135	Financial Accounting Standards Advisory Council, Chairman(2014-2015); Public Company Accounting Oversight Board, Standing Advisory Group, Member (until 2014); BlackRock, Inc. (investment management), Managing Director (until 2014), BlackRock Finco UK (investment management), Director (until 2014)	N/A

John A. Caroselli (age 64)	Trustee	March 2017	135	JC Global Advisors, LLC (management consulting), President (since 2015); First Capital Corporation (commercial finance), Executive Vice President (until 2015)	N/A

Maureen R. Goldfarb (age 63)	Trustee	January 2009	135	Private investor	N/A

Michael Hegarty (age 74)	Trustee	December 2004	135	Private investor	Rouse Properties Inc., Director (until 2016); Capmark Financial Group Inc., Director (until 2015)

Peter D. Jones (age 63)	Trustee	January 2019	135	Franklin Templeton Distributors, Inc. (investment management), President (until 2015); Franklin Templeton Institutional, LLC (investment management), Chairman (until 2015)	N/A

James W. Kilman, Jr. (age 57)	Trustee	January 2019	135	KielStrand Capital LLC (family office and merchant bank), Chief Executive Officer (since 2016); Morgan Stanley & Co. (financial services), Vice Chairman of Investment Banking,Co-Head of Diversified Financials Coverage – Financial Institutions Investment Banking Group (until 2016)	alpha-En Corporation, Director (since 2016)

MFS Research International Portfolio

Trustees and Officers – continued


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds overseen by the Trustee	Principal Occupations During the Past Five Years	Other Directorships During the Past Five Years (j)
Clarence Otis, Jr. (age 62)	Trustee	March 2017	135	Darden Restaurants, Inc., Chief Executive Officer (until 2014)	VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director; Federal Reserve Bank of Atlanta, Director (until 2015)

Maryanne L. Roepke (age 62)	Trustee	May 2014	135	American Century Investments (investment management), Senior Vice President and Chief Compliance Officer (until 2014)	N/A

Laurie J. Thomsen (age 61)	Trustee	March 2005	135	Private investor	The Travelers Companies, Director; Dycom Industries, Inc., Director (since 2015)


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds for which the Person is an Officer	Principal Occupations During the Past Five Years
OFFICERS
Christopher R. Bohane (k) (age 45)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Vice President and Assistant General Counsel

Kino Clark (k) (age 50)	Assistant Treasurer	January 2012	135	Massachusetts Financial Services Company, Vice President

John W. Clark, Jr. (k) (age 51)	Assistant Treasurer	April 2017	135	Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head – Treasurer’s Office (until February 2017)

Thomas H. Connors (k) (age 59)	Assistant Secretary and Assistant Clerk	September 2012	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Ethan D. Corey (k) (age 55)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel

David L. DiLorenzo (k) (age 50)	President	July 2005	135	Massachusetts Financial Services Company, Senior Vice President

Heidi W. Hardin (k) (age 51)	Secretary and Clerk	April 2017	135	Massachusetts Financial Services Company, Executive Vice President and General Counsel (since March 2017); Harris Associates (investment management), General Counsel (from September 2015 to January 2017); Janus Capital Management LLC (investment management), Senior Vice President and General Counsel (until September 2015)

Brian E. Langenfeld (k) (age 45)	Assistant Secretary and Assistant Clerk	June 2006	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Amanda S. Mooradian (k) (age 39)	Assistant Secretary and Assistant Clerk	September 2018	135	Massachusetts Financial Services Company, Assistant Vice President and Counsel

Susan A. Pereira (k) (age 48)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Kasey L. Phillips (k) (age 48)	Assistant Treasurer	September 2012	135	Massachusetts Financial Services Company, Vice President

Matthew A. Stowe (k) (age 44)	Assistant Secretary and Assistant Clerk	October 2014	135	Massachusetts Financial Services Company, Vice President and Assistant General Counsel

MFS Research International Portfolio

Trustees and Officers – continued


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds for which the Person is an Officer	Principal Occupations During the Past Five Years
Frank L. Tarantino (age 74)	Independent Senior Officer	June 2004	135	Tarantino LLC (provider of compliance services), Principal

Richard S. Weitzel (k) (age 48)	Assistant Secretary and Assistant Clerk	October 2007	135	Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel

Martin J. Wolin (k) (age 51)	Chief Compliance Officer	July 2015	135	Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer (since July 2015); Mercer (financial service provider), Chief Risk and Compliance Officer, North America and Latin America (until June 2015)

James O. Yost (k) (age 58)	Treasurer	September 1990	135	Massachusetts Financial Services Company, Senior Vice President

(h)

(j)	Directorships or trusteeships of companies required to report to the Securities and Exchange Commission (i.e., “public companies”).

(k)

Messrs. Buller, Hegarty, Kilman and Otis and Ms. Roepke are members of the Trust’s Audit Committee.

Each of the Interested Trustees and certain Officers hold comparable officer positions with certain affiliates of MFS.

The Statement of Additional Information for a Fund includes further information about the Trustees and is available without charge upon request by calling1-800-225-2606.


Investment Adviser Massachusetts Financial Services Company 111 Huntington Avenue Boston, MA 02199-7618		Custodian State Street Bank and Trust Company 1 Lincoln Street Boston, MA 02111-2900
Distributor MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618		Independent Registered Public Accounting Firm Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116
Portfolio Manager(s) Jose Luis Garcia Victoria Higley Camille Humphries Lee Thomas Melendez

MFS Research International Portfolio

BOARD REVIEW OF INVESTMENT ADVISORY AGREEMENT

Based on information provided by Broadridge and MFS, the Trustees reviewed the Fund’s total return investment performance as well as the Broadridge performance universe over various time periods. The Trustees placed particular emphasis on the total return performance of the Fund’s Initial Class shares in comparison to the performance of funds in its Broadridge performance universe over the three-year period ended December 31, 2017, which the Trustees believed was a long enough period to reflect differing market conditions. The total return performance of the Fund’s Initial Class shares was in the 4th quintile relative to the other funds in the universe for this three-year period (the 1st quintile being the best performers and the 5th quintile being the worst performers). The total return performance of the Fund’s Initial Class shares was in the 4th quintile for theone-year period and the 5th quintile for the five-year period ended December 31, 2017 relative to the Broadridge performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.

The Trustees expressed concern to MFS about the substandard investment performance of the Fund and the Fund’s retail counterpart, MFS Research International Fund, which has substantially similar investment strategies and experienced substantially similar investment performance as the Fund. In the course of their deliberations, the Trustees took into account information provided by MFS in connection with the contract review meetings, as well as during investment review meetings conducted with portfolio management personnel during the course of the year as to MFS’ efforts to improve the performance of the Fund and the Fund’s

MFS Research International Portfolio

Board Review of Investment Advisory Agreement – continued

retail counterpart. In addition, the Trustees requested that they receive a separate update on the Fund’s retail counterpart at each of their regular meetings. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the investment advisory agreement, that MFS’ responses and efforts and plans to improve investment performance were sufficient to support approval of the continuance of the investment advisory agreement for an additionalone-year period, but that they would continue to closely monitor the performance of the Fund’s retail counterpart.

In assessing the reasonableness of the Fund’s advisory fee, the Trustees considered, among other information, the Fund’s advisory fee and the total expense ratio of the Fund’s Initial Class shares as a percentage of average daily net assets and the advisory fee and total expense ratios of peer groups of funds based on information provided by Broadridge. The Trustees considered that MFS currently observes an expense limitation for the Fund, which may not be changed without the Trustees’ approval. The Trustees also considered that, according to the data provided by Broadridge (which takes into account any fee reductions or expense limitations that were in effect during the Fund’s last fiscal year), the Fund’s effective advisory fee rate was higher than the Broadridge expense group median and the Fund’s total expense ratio was approximately at the Broadridge expense group median. The Trustees also noted that MFS has agreed to further reduce such expense limitation for the Fund effective August 1, 2018, which may not be changed without the Trustees’ approval.

The Trustees also considered whether the Fund may benefit from any economies of scale in the management of the Fund in the event of growth in assets of the Fund and/or growth in assets of the MFS Funds as a whole. They noted that the Fund’s advisory fee rate schedule is subject to contractual breakpoints that reduce the Fund’s advisory fee rate on average daily net assets over $1 billion and $2 billion. The Trustees also noted that MFS has agreed in writing to waive a portion of the management fees of certain MFS Funds, including the Fund, if the total combined assets of certain funds within the MFS Funds’ complex increase above agreed upon thresholds (the “group fee waiver”), enabling the Fund’s shareholders to share in the benefits from any economies of scale at the complex level. The group fee waiver is reviewed and renewed annually between the Board and MFS. The Trustees concluded that the breakpoints and the group fee waiver were sufficient to allow the Fund to benefit from economies of scale as its assets and overall complex assets grow.

MFS Research International Portfolio

Board Review of Investment Advisory Agreement – continued

MFS Research International Portfolio

PROXY VOTING POLICIES AND INFORMATION

QUARTERLY PORTFOLIO DISCLOSURE

FURTHER INFORMATION

INFORMATION ABOUT FUND CONTRACTS AND LEGAL CLAIMS

FEDERAL TAX INFORMATION (unaudited)

The following information is provided pursuant to provisions of the Internal Revenue Code.

The fund designates $5,891,000 as capital gain dividends paid during the fiscal year.

Income derived from foreign sources was $9,969,178. The fund intends to pass through foreign tax credits of $881,858 for the fiscal year.

rev. 3/16



FACTS		WHAT DOES MFS DO WITH YOUR PERSONAL INFORMATION?


Why?		Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.

What?

The types of personal information we collect and share depend on the product or service you have with us. This information can include:

• Social Security number and account balances

• Account transactions and transaction history

• Checking account information and wire transfer instructions

When you areno longer our customer, we continue to share your information as described in this notice.


How?		All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons MFS chooses to share; and whether you can limit this sharing.


Reasons we can share your personal information	Does MFS share?	Can you limit this sharing?
For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes – to offer our products and services to you	No	We don’t share
For joint marketing with other financial companies	No	We don’t share
For our affiliates’ everyday business purposes – information about your transactions and experiences	No	We don’t share
For our affiliates’ everyday business purposes – information about your creditworthiness	No	We don’t share
For nonaffiliates to market to you	No	We don’t share



Questions?		Call800-225-2606 or go tomfs.com.


Page 2


Who we are
Who is providing this notice?		MFS Funds, MFS Investment Management, MFS Institutional Advisors, Inc., and MFS Heritage Trust Company.


What we do
How does MFS protect my personal information?		To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include procedural, electronic, and physical safeguards for the protection of the personal information we collect about you.
How does MFS collect my personal information?		We collect your personal information, for example, when you • open an account or provide account information • direct us to buy securities or direct us to sell your securities • make a wire transfer We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can’t I limit all sharing?		Federal law gives you the right to limit only • sharing for affiliates’ everyday business purposes – information about your creditworthiness • affiliates from using your information to market to you • sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing.


Definitions
Affiliates		Companies related by common ownership or control. They can be financial and nonfinancial companies. • MFS does not share personal information with affiliates, except for everyday business purposes as described on page one of this notice.
Nonaffiliates		Companies not related by common ownership or control. They can be financial and nonfinancial companies. • MFS does not share with nonaffiliates so they can market to you.
Joint marketing		A formal agreement between nonaffiliated financial companies that together market financial products or services to you. • MFS doesn’t jointly market.


Other important information
If you own an MFS product or receive an MFS service in the name of a third party such as a bank or broker-dealer, their privacy policy may apply to you instead of ours.

LOGO

Annual Report

December 31, 2018

LOGO

MFS^® Strategic Income Portfolio

LOGO

MFS^® Variable Insurance Trust II

SIS-ANN

MFS® Strategic Income Portfolio

CONTENTS


Letter from the Executive Chairman			1
Portfolio composition			2
Management review			4
Performance summary			5
Expense table			6
Portfolio of investments			7
Statement of assets and liabilities			13
Statement of operations			14
Statements of changes in net assets			15
Financial highlights			16
Notes to financial statements			18
Report of independent registered public accounting firm			28
Trustees and officers			29
Board review of investment advisory agreement			32
Proxy voting policies and information			34
Quarterly portfolio disclosure			34
Further information			34
Information about fund contracts and legal claims			34
MFS^® privacy notice			35

The report is prepared for the general information of contract owners. 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 OR CREDIT UNION GUARANTEE• NOT A DEPOSIT• NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY OR NCUA/NCUSIF

MFS Strategic Income Portfolio

LETTER FROM THE EXECUTIVE CHAIRMAN

LOGO

Dear Contract Owners:

Respectfully,

LOGO

Robert J. Manning

Executive Chairman

MFS Investment Management

February 15, 2019

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

MFS Strategic Income Portfolio

PORTFOLIO COMPOSITION

Portfolio structure (i)

LOGO


Fixed income sectors (i)
Investment Grade Corporates			29.4%
U.S. Treasury Securities			27.3%
Commercial Mortgage-Backed Securities			12.3%
High Yield Corporates			9.8%
Collateralized Debt Obligations			8.7%
Emerging Markets Bonds			6.6%
Asset-Backed Securities			5.0%
Municipal Bonds			0.7%
Mortgage-Backed Securities			0.6%
Non-U.S. Government Bonds			0.6%
Residential Mortgage-Backed Securities			0.3%
U.S. Government Agencies			0.3%
Floating Rate Loans			0.1%


Composition including fixed income credit quality (a)(i)
AAA			11.3%
AA			4.0%
A			17.5%
BBB			22.9%
BB			9.8%
B			6.1%
CCC			1.2%
CC			0.3%
C			0.2%
U.S. Government			13.5%
Federal Agencies			0.9%
Not Rated			14.0%
Non-Fixed Income			0.1%
Cash & Cash Equivalents			8.5%
Other			(10.3)%

Portfolio facts (i)
Average Duration (d)			5.8
Average Effective Maturity (m)			8.4 yrs.

(a)

For all securities other than those specifically described below, ratings are assigned to underlying securities utilizing ratings from Moody’s, Fitch, and Standard & Poor’s rating agencies and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). Securities rated BBB or higher are considered investment grade. All ratings are subject to change. U.S. Government includes securities issued by the U.S. Department of the Treasury. Federal Agencies includes rated and unrated U.S. Agency fixed-income securities, U.S. Agency mortgage-backed securities, and collateralized mortgage obligations of U.S. Agency mortgage-backed securities. Not Rated includes fixed income securities and fixed income derivatives, which have not been rated by any rating agency.Non-Fixed Income includes any equity securities (including convertible bonds and equity derivatives) and/or commodity-linked derivatives. The fund may or may not have held all of these instruments on this date. The fund is not rated by these agencies.

(d)

Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a5-year duration is likely to lose about 5.00% of its value due to the interest rate move.

(i)

MFS Strategic Income Portfolio

Portfolio Composition – continued

(m)

Where the fund holds convertible bonds, they are treated as part of the equity portion of the portfolio.

The fund invests a portion of its assets in the MFS High Yield Pooled Portfolio. Percentages reflect exposure to the underlying holdings, including Cash & Cash Equivalents and Other, of the MFS High Yield Pooled Portfolio and not to the exposure from investing directly in the MFS High Yield Pooled Portfolio itself.

Other includes equivalent exposure from currency derivatives and/or any offsets to derivative positions and may be negative.

Percentages are based on net assets as of December 31, 2018.

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

MFS Strategic Income Portfolio

MANAGEMENT REVIEW

Summary of Results

For the twelve months ended December 31, 2018, Initial Class shares of the MFS Strategic Income Portfolio (“fund”) provided a total return of –1.99%, while Service Class shares of the fund provided a total return of –2.11%. These compare with a return of 0.01% over the same period for the fund’s benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index.

Market Environment

Factors Affecting Performance

Relative to the Bloomberg Barclays U.S. Aggregate Bond Index, the fund’s greater exposure to theindustrialssector, particularly within “BB” and “B” rated (r) bonds,and a lesser exposure to thetreasurysector, detracted from performance. Additionally, the fund’sout-of-benchmark exposure to “B” rated securities within thesovereign sector, and security selection in both thecommercial mortgage-backed securities (CMBS) sector and in “AAA” rated bonds, further held back relative performance.

Conversely, the fund’sout-of-benchmark exposure to thecollateralized mortgage obligation (CMO) sector, and a greater exposure to “A” rated securities, contributed to relative performance. In addition, security selection in thegovernment-related agenciessector and in “BBB” rated bonds further benefited relative results.

Respectfully,

Portfolio Manager(s)

Neeraj Arora, Philipp Burgener, David Cole, Alexander Mackey, Joshua Marston, Robert Persons, and Michael Skatrud

(r)

Note to Shareholders: Effective March 1, 2018, Michael Skatrud became a Portfolio Manager of the Fund. Effective June 1, 2018, Ward Brown and Matt Ryan are no longer Portfolio Managers of the Fund. Effective June 1, 2018, Neeraj Arora became a Portfolio Manager of the Fund. Effective September 1, 2018, William Adams is no longer a Portfolio Manager of the Fund.

MFS Strategic Income Portfolio

PERFORMANCE SUMMARY THROUGH 12/31/18

Growth of a Hypothetical $10,000 Investment

LOGO

Total Returns through 12/31/18

Average annual total returns


	Share Class	Class Inception Date	1-yr	5-yr	10-yr
	Initial Class	5/06/98	(1.99)%	2.70%	6.54%
	Service Class	8/24/01	(2.11)%	2.46%	6.28%

Comparative benchmark(s)
	Bloomberg Barclays U.S. Aggregate Bond Index (f)		0.01%	2.52%	3.48%

(f)	Source: FactSet Research Systems Inc.

Benchmark Definition(s)

Bloomberg Barclays U.S. Aggregate Bond Index – a market capitalization-weighted index that measures the performance of the U.S. investment-grade, fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities with at least one year to final maturity.

It is not possible to invest directly in an index.

Notes to Performance Summary

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

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

MFS Strategic Income Portfolio

EXPENSE TABLE

Fund Expenses Borne by the Contract Holders during the Period,

July 1, 2018 through December 31, 2018

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 MFS Pooled Portfolio in which the fund invests. MFS Pooled Portfolios are mutual funds advised by MFS that do not pay management fees to MFS but do incur investment and operating costs. If these transactional and indirect costs were included, your costs would have been higher.

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period July 1, 2018 through December 31, 2018.

Actual Expenses

Hypothetical Example for Comparison Purposes


Share Class		Annualized Expense Ratio		Beginning Account Value 7/01/18		Ending Account Value 12/31/18		Expenses Paid During Period (p) 7/01/18-12/31/18
Initial Class	Actual		0.80%		$1,000.00		$1,005.67		$4.04
Initial Class	Hypothetical (h)		0.80%		$1,000.00		$1,021.17		$4.08
Service Class	Actual		1.05%		$1,000.00		$1,004.70		$5.31
Service Class	Hypothetical (h)		1.05%		$1,000.00		$1,019.91		$5.35

(h)	5% class return per year before expenses.

(p)

“Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect theone-half year period). In addition to the fees and expenses which the fund bears directly, the fund indirectly bears a pro rata share of the fees and expenses of the underlying funds in which the fund invests. If these indirect costs were included, your costs would have been higher.

MFS Strategic Income Portfolio

PORTFOLIO OF INVESTMENTS – 12/31/18

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



Issuer	Shares/Par		Value ($)
BONDS – 77.3%
Asset-Backed & Securitized – 26.1%
A Voce CLO Ltd.,2014-1A, “BR”, FLR, 4.586% (LIBOR - 3mo. + 2.15%), 7/15/2026 (n)	$	290,000	$	284,006
Allegro CLO Ltd.,2014-1RA, “C”, FLR, 5.152% (LIBOR - 3mo. + 3%), 10/21/2028 (z)		250,000		235,159
ALM Loan Funding CLO,2015-16A, “BR2”, FLR, 4.336% (LIBOR - 3mo. + 1.9%), 7/15/2027 (n)		260,000		250,691
Arbor Realty CLO Ltd.,2018-A,“FL-1”, FLR, 3.605% (LIBOR - 1mo. + 1.15%), 6/15/2028 (z)		260,000		255,804
Babson CLO Ltd.,2013-IIA, “BR”, FLR, 3.719% (LIBOR - 3mo.+ 1.25%), 1/20/2028 (n)		250,000		241,462
Bancorp Commercial Mortgage Trust2018-CRE4, “D”, FLR, 4.555% (LIBOR - 1mo. + 2.1%), 9/15/2035 (z)		200,000		200,029
Bancorp Commercial Mortgage Trust,2018-CR3, “D”, FLR, 5.155% (LIBOR - 1mo. + 2.7%), 1/15/2033 (z)		248,157		246,143
Bayview Financial Revolving Mortgage Loan Trust, FLR, 4.105% (LIBOR - 1mo. + 1.6%), 12/28/2040 (z)		152,924		141,244
BDS Ltd.,2018-FL2, “C”, FLR, 4.305% (LIBOR - 1mo. + 1.85%), 8/15/2035 (z)		200,000		193,077
Benchmark Mortgage Trust,“2018-B1”, 3.666%, 1/15/2051		251,384		251,676
Business Jet Securities LLC,2018-1, “C”, 7.748%, 2/15/2033 (z)		91,719		94,363
Chesapeake Funding II LLC,2017-2A, “C”, 3.01%, 5/15/2029 (n)		215,000		213,150
Citigroup Commercial Mortgage Trust,2017-C4, 3.471%, 10/12/2050		173,669		171,366
Commercial Mortgage Pass-Through Certificates, “2017-BNK8”, “A3”, 3.229%, 11/15/2050		250,000		243,009
Commercial Mortgage Pass-Through Certificates, “2018-BNK10”, “A5”, 3.688%, 2/15/2061		250,000		248,760
Commercial Mortgage Trust,2015-PC1, “A5”, 3.902%, 7/10/2050		346,107		353,109
Commercial Mortgage Trust,2017-CD4, “A4”, 3.514%, 5/10/2050		112,627		111,859
Commercial Mortgage Trust, 2017-COR2, “A3”, 3.51%, 9/10/2050		250,000		245,684
CPS Auto Trust,2016-D, “B”, 2.11%, 3/15/2021 (n)		203,755		203,157
Crest Ltd., CDO, 7%, (0.001% cash or 7% PIK) 1/28/2040 (a)(p)		734,116		88,094
Cutwater Ltd.,2015-IA, “BR”, FLR, 4.236% (LIBOR - 3mo. + 1.8%), 1/15/2029 (z)		250,000		249,209



Issuer	Shares/Par		Value ($)
BONDS – continued
Asset-Backed & Securitized – continued
Drive Auto Receivables Trust,2017-1, “C”, 2.84%, 4/15/2022	$	98,000	$	97,876
DT Auto Owner Trust,2017-2A, “C”, 3.03%, 1/17/2023 (n)		215,000		214,775
DT Auto Owner Trust,2018-2A, “C”, 3.67%, 3/15/2024 (n)		82,000		82,390
Exantas Capital Corp. CLO Ltd., 2018-RS06, “B”, FLR, 3.605% (LIBOR - 1mo. + 1.15%), 6/15/2035 (z)		260,000		254,768
Falcon Franchise Loan LLC, 8.047%, 1/05/2023 (i)(z)		6,860		272
Figueroa CLO Ltd.,2014-1A, “DR”, FLR, 5.686% (LIBOR - 3mo. + 3.25%), 1/15/2027 (z)		250,000		239,599
Flatiron CLO Ltd.,2015-1A, “CR”, FLR, 4.336% (LIBOR - 3mo. + 1.9%), 4/15/2027 (n)		260,000		250,625
GMF Floorplan Owner Revolving Trust,2017-2, “C”, 2.63%, 7/15/2022 (z)		260,000		257,257
GS Mortgage Securities Trust,2017-GS6, “A3”, 3.433%, 5/10/2050		177,406		174,141
GS Mortgage Securities Trust,2017-GS7, “A4”, 3.43%, 8/10/2050		251,247		245,476
Hunt CRE Ltd.,2018-FL2, “D”, FLR, 5.205% (LIBOR - 1mo. + 2.75%), 8/15/2028 (z)		200,000		198,338
Invitation Homes Trust, 2018-SFR1, “C”, FLR, 3.705% (LIBOR - 1mo. + 1.25%), 3/17/2037 (z)		130,000		128,555
JPMorgan Chase Commercial Mortgage Securities Corp., 3.454%, 9/15/2050		134,136		132,245
KKR Real Estate Financial Trust Inc Ltd.,2018-FL1, “D”, FLR, 4.852% (LIBOR - 1mo. + 2.55%), 6/15/2036 (z)		205,000		204,995
Lehman Brothers Commercial Conduit Mortgage Trust, 0.954%, 2/18/2030 (i)		5,957		0
LoanCore Ltd., 2018-CRE1, “C”, FLR, 5.005% (LIBOR - 1mo. + 2.55%), 5/15/2028 (n)		260,000		255,032
Man GLG US CLO2018-2 Ltd.,2018-2A, “BR”, FLR, 5.101% (LIBOR - 3mo. + 2.45%), 10/15/2028		250,000		245,002
Morgan Stanley Bank of America Merrill Lynch Trust,2017-C34, “A4”, 3.536%, 11/15/2052		250,000		246,534
Morgan Stanley Capital I Trust,2017-H1, “A5”, 3.53%, 6/15/2050		187,518		185,476
Navistar Financial Dealer Note Master Owner Trust II, Series2018-1, FLR, 4.056%(LIBOR - 1mo. + 1.55%), 9/25/2023 (z)		269,000		269,178
Neuberger Berman CLO Ltd.,2016-21A, “CR”, FLR, 4.069% (LIBOR - 3mo. + 1.6%), 4/20/2027 (n)		250,000		235,496

MFS Strategic Income Portfolio

Portfolio of Investments – continued



Issuer	Shares/Par		Value ($)
BONDS – continued
Asset-Backed & Securitized – continued
NextGear Floorplan Master Owner Trust,2017-2A, “B”, 3.02%, 10/17/2022 (n)	$	212,000	$	210,837
NextGear Floorplan Master Owner Trust,2018-1A, “B”, 3.57%, 2/15/2023 (z)		200,000		200,159
Oaktree CLO Ltd.,2014-2A, “BR”, FLR, 5.019% (LIBOR - 3mo. + 2.55%), 10/20/2026 (n)		300,000		298,848
Parallel Ltd.,2015-1A, “DR”, FLR, 5.019% (LIBOR - 3mo. + 2.55%), 7/20/2027 (n)		250,000		235,469
Race Point CLO Ltd.,2013-8A, “CR”, FLR, 5.144% (LIBOR - 3mo. + 2.5%), 2/20/2030 (n)		300,000		289,565
Santander Drive Auto Receivables Trust,2017-2, “C”, 2.79%, 8/15/2022		214,000		212,986
Sierra Receivables Funding Co. LLC,2015-1A, “A”, 2.4%, 3/22/2032 (n)		32,718		32,521
UBS Commercial Mortgage Trust2017-C6, “A5”, 3.579%, 12/15/2050		250,000		247,565
UBS Commercial Mortgage Trust2017-C7, “A4”, 3.679%, 12/15/2050		250,000		249,384
UBS Commercial Mortgage Trust2017-C8, “A4”, 3.983%, 2/15/2051		250,000		254,923
UBS Commercial Mortgage Trust,2017-C1, “A4”, 3.544%, 11/15/2050		251,247		248,880
Wells Fargo Commercial Mortgage Trust,2017-C42, “A5”, 3.589%, 12/15/2050		250,000		248,445
Wells Fargo Commercial Mortgage Trust,2017-RB1, “A4”, 3.374%, 3/15/2050		280,000		274,150
West CLO Ltd.,2014-1A, “CR”, FLR, 5.444% (LIBOR - 3mo. + 3%), 7/18/2026 (n)		260,000		252,480

			$	11,695,293

Automotive – 0.3%
General Motors Co., 4.2%, 10/01/2027	$	134,000	$	120,844

Broadcasting – 0.3%
Time Warner, Inc., 3.8%, 2/15/2027	$	125,000	$	117,351

Brokerage & Asset Managers – 1.3%
Charles Schwab Corp., 3.2%, 1/25/2028	$	228,000	$	218,634
E*TRADE Financial Corp., 4.5%, 6/20/2028		292,000		287,917
Raymond James Financial, Inc., 4.95%, 7/15/2046		75,000		72,150

			$	578,701

Building – 0.7%
Martin Marietta Materials, Inc., 4.25%, 7/02/2024	$	215,000	$	217,582
Martin Marietta Materials, Inc., 3.5%, 12/15/2027		115,000		104,910

			$	322,492

Cable TV – 1.1%
Cox Communications, Inc., 3.5%, 8/15/2027 (n)	$	200,000	$	184,497
Time Warner Cable, Inc., 8.25%, 4/01/2019		150,000		151,683
Time Warner Cable, Inc., 4.5%, 9/15/2042		183,000		147,288

			$	483,468



Issuer	Shares/Par		Value ($)
BONDS – continued
Chemicals – 0.4%
Sasol Chemicals (USA) LLC, 5.875%, 3/27/2024	$	200,000	$	199,565

Computer Software – 0.8%
Microsoft Corp., 3.125%, 11/03/2025	$	133,000	$	131,606
Microsoft Corp., 4.25%, 2/06/2047		205,000		215,516

			$	347,122

Computer Software – Systems – 0.6%
Apple, Inc., 4.25%, 2/09/2047	$	250,000	$	249,487

Conglomerates – 0.9%
United Technologies Corp., 4.125%, 11/16/2028	$	166,000	$	164,832
United Technologies Corp., 4.05%, 5/04/2047		120,000		106,640
Wabtec Corp., 4.7%, 9/15/2028		132,000		123,871

			$	395,343

Consumer Products – 1.4%
Reckitt Benckiser Treasury Services PLC, 3.625%, 9/21/2023 (n)	$	259,000	$	260,652
Reckitt Benckiser Treasury Services PLC, 2.75%, 6/26/2024 (n)		401,000		378,963

			$	639,615

Consumer Services – 0.8%
Priceline Group, Inc., 3.55%, 3/15/2028	$	242,000	$	226,698
Toll Road Investors Partnership II LP, Capital Appreciation, 0%, 2/15/2026 (n)		46,000		31,821
Toll Road Investors Partnership II LP, Capital Appreciation, 0%, 2/15/2029 (n)		132,000		75,723
Toll Road Investors Partnership II LP, Capital Appreciation, 0%, 2/15/2031 (n)		46,000		23,369

			$	357,611

Emerging Market Quasi-Sovereign – 2.1%
Petrobras Global Finance B.V., 5.999%, 1/27/2028	$	117,000	$	110,157
PT Indonesia Asahan Aluminium (Persero), 5.71%, 11/15/2023 (n)		200,000		203,508
PT Indonesia Asahan Aluminium (Persero), 6.53%, 11/15/2028 (n)		200,000		209,775
REC Ltd., 5.25%, 11/13/2023 (n)		200,000		200,548
Southern Gas Corridor CJSC, 6.875%, 3/24/2026		200,000		216,008

			$	939,996

Emerging Market Sovereign – 2.6%
Arab Republic of Egypt, 6.588%, 2/21/2028 (n)	$	212,000	$	189,010
Government of Ukraine, 7.75%, 9/01/2021		135,000		126,900
Government of Ukraine, 9.75%, 11/01/2028 (n)		200,000		187,416
Republic of Argentina, 5.875%, 1/11/2028		95,000		68,281
Republic of Philippines, 8%, 7/19/2031	PHP	5,375,000		110,044
Republic of Turkey, 7.375%, 2/05/2025	$	243,000		250,363

MFS Strategic Income Portfolio

Portfolio of Investments – continued



Issuer	Shares/Par		Value ($)
BONDS – continued
Emerging Market Sovereign – continued
Socialist Republic of Vietnam, 4.8%, 11/19/2024	$	231,000	$	232,833

			$	1,164,847

Energy – Independent – 0.5%
Canadian Oil Sands Co., 7.75%, 5/15/2019 (n)	$	126,000	$	127,828
Canadian Oil Sands Co., 4.5%, 4/01/2022 (n)		118,000		118,430

			$	246,258

Energy – Integrated – 0.9%
Eni S.p.A., 4%, 9/12/2023 (n)	$	200,000	$	196,920
Shell International Finance B.V., 2.875%, 5/10/2026		225,000		215,591

			$	412,511

Food & Beverages – 2.0%
Anheuser Busch InBev Worldwide, Inc., 4.439%, 10/06/2048	$	125,491	$	108,517
Conagra Brands, Inc., 4.6%, 11/01/2025		282,000		283,020
Constellation Brands, Inc., 4.4%, 11/15/2025		315,000		315,766
General Mills, Inc., 4.55%, 4/17/2038		62,000		57,586
Kraft Foods Group, Inc., 5%, 6/04/2042		62,000		55,509
Wm. Wrigley Jr. Co., 3.375%, 10/21/2020 (n)		81,000		81,212

			$	901,610

Insurance – 0.9%
American International Group, Inc., 3.9%, 4/01/2026	$	294,000	$	283,246
American International Group, Inc., 4.7%, 7/10/2035		59,000		56,096
American International Group, Inc., 4.5%, 7/16/2044		53,000		47,324

			$	386,666

Insurance – Health – 0.4%
UnitedHealth Group, Inc., 3.75%, 10/15/2047	$	220,000	$	201,640

Insurance – Property & Casualty – 1.2%
Allied World Assurance Co. Holdings Ltd., 4.35%, 10/29/2025	$	310,000	$	305,739
Marsh & McLennan Cos., Inc., 4.2%, 3/01/2048		277,000		251,943

			$	557,682

International Market Quasi-Sovereign – 0.6%
Dexia Credit Local S.A., 2.25%, 2/18/2020 (n)	$	270,000	$	268,378

Machinery & Tools – 0.3%
CNH Industrial Capital LLC, 3.85%, 11/15/2027	$	145,000	$	131,963

Major Banks – 7.3%
Bank of America Corp., 2.151%, 11/09/2020	$	100,000	$	98,187
Bank of America Corp., 4.125%, 1/22/2024		75,000		76,017
Bank of America Corp., 3.248%, 10/21/2027		656,000		606,634
Bank of America Corp., 4.271% to 7/23/2028, FLR (LIBOR - 3mo. + 1.31%) to 7/23/2029		136,000		135,444



Issuer	Shares/Par		Value ($)
BONDS – continued
Major Banks – continued
Bank of New York Mellon Corp., 3.5%, 4/28/2023	$	329,000	$	329,968
Credit Suisse Group AG, 3.869%, 1/12/2029 (n)		250,000		232,714
ING Bank N.V., 5.8%, 9/25/2023 (n)		322,000		336,317
JPMorgan Chase & Co., 3.125%, 1/23/2025		220,000		209,685
JPMorgan Chase & Co., 3.882% to 7/24/2037, FLR (LIBOR - 3mo. + 1.36%) to 7/24/2038		269,000		245,087
Morgan Stanley, 3.7%, 10/23/2024		277,000		272,378
Morgan Stanley, 3.625%, 1/20/2027		317,000		301,438
UBS Group Funding (Switzerland) AG, 4.253%, 3/23/2028 (n)		415,000		409,426

			$	3,253,295

Medical & Health Technology & Services – 0.7%
Becton, Dickinson and Co., 3.734%, 12/15/2024	$	318,000	$	307,162

Medical Equipment – 0.7%
Abbott Laboratories, 4.75%, 11/30/2036	$	305,000	$	318,470

Metals & Mining – 0.9%
Glencore Funding LLC, 4.125%, 5/30/2023 (n)	$	164,000	$	161,046
Glencore Funding LLC, 4%, 4/16/2025 (n)		84,000		79,078
Glencore Funding LLC, 3.875%, 10/27/2027 (n)		167,000		149,295

			$	389,419

Midstream – 0.7%
MPLX LP, 4%, 3/15/2028	$	315,000	$	295,408

Mortgage-Backed – 0.6%
Fannie Mae, 5.5%, 3/01/2020 - 9/01/2034	$	12,712	$	13,569
Fannie Mae, 6.5%, 4/01/2032		19,209		21,238
Freddie Mac, 4.224%, 3/25/2020		234,148		237,053

			$	271,860

Municipals – 0.7%
New Jersey Economic Development Authority State Pension Funding Rev., Capital Appreciation, “B”, AGM, 0%, 2/15/2023	$	350,000	$	299,544

Network & Telecom – 0.6%
AT&T, Inc., 5.45%, 3/01/2047	$	286,000	$	279,686

Other Banks & Diversified Financials – 0.7%
Compass Bank, 2.875%, 6/29/2022	$	250,000	$	239,544
JSC Kazkommertsbank, 5.5%, 12/21/2022		99,000		97,018

			$	336,562

Pharmaceuticals – 0.4%
Actavis Funding SCS, 3.8%, 3/15/2025	$	179,000	$	174,819

Supranational – 0.8%
Corporacion Andina de Fomento, 4.375%, 6/15/2022	$	340,000	$	351,883

MFS Strategic Income Portfolio

Portfolio of Investments – continued



Issuer	Shares/Par		Value ($)
BONDS – continued
Telecommunications – Wireless – 1.0%
American Tower Corp., REIT, 3.55%, 7/15/2027	$	358,000	$	336,034
American Tower Corp., REIT, 3.6%, 1/15/2028		125,000		116,861

			$	452,895

Tobacco – 0.8%
B.A.T. Capital Corp., 3.557%, 8/15/2027	$	384,000	$	341,087

Transportation – Services – 0.6%
ERAC USA Finance LLC, 3.8%, 11/01/2025 (n)	$	267,000	$	261,877

U.S. Government Agencies and Equivalents – 0.2%
Small Business Administration, 6.35%, 4/01/2021	$	1,741	$	1,780
Small Business Administration, 4.77%, 4/01/2024		20,085		20,666
Small Business Administration, 4.99%, 9/01/2024		15,439		15,971
Small Business Administration, 4.86%, 1/01/2025		21,183		21,838
Small Business Administration, 4.625%, 2/01/2025		27,571		28,325
Small Business Administration, 5.11%, 8/01/2025		21,334		22,054

			$	110,634

U.S. Treasury Obligations – 13.4%
U.S. Treasury Bonds, 4.75%, 2/15/2037	$	54,000	$	68,891
U.S. Treasury Bonds, 3.5%, 2/15/2039		326,000		357,062
U.S. Treasury Bonds, 2.5%, 2/15/2045 (f)		1,669,000		1,515,371
U.S. Treasury Notes, 2.875%, 10/31/2020		529,000		532,219



Issuer	Shares/Par		Value ($)
BONDS – continued
U.S. Treasury Obligations – continued
U.S. Treasury Notes, 1.75%, 11/30/2021	$	1,110,000	$	1,087,563
U.S. Treasury Notes, 1.75%, 2/28/2022 (f)		2,478,000		2,423,922

			$	5,985,028

Utilities – Electric Power – 1.0%
Enel Finance International N.V., 3.625%, 5/25/2027 (n)	$	280,000	$	247,137
Enel Finance International N.V., 4.875%, 6/14/2029 (n)		200,000		190,907

			$	438,044

Total Bonds (Identified Cost, $35,595,279)			$	34,586,116


COMMON STOCKS – 0.0%
Energy – Independent – 0.0%
Frontera Energy Corp. (a) (Identified Cost, $106,984)		1,188	$	11,573


INVESTMENT COMPANIES (h) – 17.2%
Bond Funds – 13.9%
MFS High Yield Pooled Portfolio (v)		725,387	$	6,231,072

Money Market Funds – 3.3%
MFS Institutional Money Market Portfolio, 2.4% (v)		1,455,646	$	1,455,501

Total Investment Companies (Identified Cost, $8,974,737)			$	7,686,573

OTHER ASSETS, LESS LIABILITIES – 5.5%				2,440,503

NET ASSETS – 100.0%			$	44,724,765

(a)

Non-income producing security.

(f)

All or a portion of the security has been segregated as collateral for open futures contracts and cleared swap agreements.

(h)

(i)

Interest only security for which the fund receives interest on notional principal (Par amount). Par amount shown is the notional principal and does not reflect the cost of the security.

(n)

(p)

Payment-in-kind (PIK) security for which interest income may be received in additional securities and/or cash.

(v)

(z)


Restricted Securities	Acquisition Date	Cost		Value

Allegro CLO Ltd.,2014-1RA, “C”, FLR, 5.152% (LIBOR - 3mo. + 3%), 10/21/2028	8/22/18		$250,000		$235,159

Arbor Realty CLO Ltd.,2018-A,“FL-1”, FLR, 3.605% (LIBOR - 1mo. + 1.15%), 6/15/2028	5/23/18		260,000		255,804

Bancorp Commercial Mortgage Trust 2018-CRE4, “D”, FLR, 4.555% (LIBOR - 1mo. + 2.1%), 9/15/2035	9/17/18		200,000		200,029

Bancorp Commercial Mortgage Trust,2018-CR3, “D”, FLR, 5.155% (LIBOR - 1mo. + 2.7%), 1/15/2033	3/13/18		248,157		246,143

Bayview Financial Revolving Mortgage Loan Trust, FLR, 4.105% (LIBOR - 1mo. + 1.6%), 12/28/2040	3/01/06		152,924		141,244

BDS Ltd.,2018-FL2, “C”, FLR, 4.305% (LIBOR - 1mo. + 1.85%), 8/15/2035	7/25/18		200,000		193,077

MFS Strategic Income Portfolio

Portfolio of Investments – continued


Restricted Securities - continued	Acquisition Date	Cost		Value

Business Jet Securities LLC,2018-1, “C”, 7.748%, 2/15/2033	2/21/18		$91,718		$94,363

Cutwater Ltd.,2015-IA, “BR”, FLR, 4.236% (LIBOR - 3mo. + 1.8%), 1/15/2029	8/15/18		250,000		249,209

Exantas Capital Corp. CLO Ltd., 2018-RS06, “B”, FLR, 3.605% (LIBOR - 1mo. + 1.15%), 6/15/2035	6/07/18		260,000		254,768

Falcon Franchise Loan LLC, 8.047%, 1/05/2023	1/18/02		272		272

Figueroa CLO Ltd.,2014-1A, “DR”, FLR, 5.686% (LIBOR - 3mo. + 3.25%), 1/15/2027	1/28/18		250,000		239,599

GMF Floorplan Owner Revolving Trust,2017-2, “C”, 2.63%, 7/15/2022	8/15/17		259,955		257,257

Hunt CRE Ltd.,2018-FL2, “D”, FLR, 5.205% (LIBOR - 1mo. + 2.75%), 8/15/2028	8/03/18		200,000		198,338

Invitation Homes Trust, 2018-SFR1, “C”, FLR, 3.705% (LIBOR - 1mo. + 1.25%), 3/17/2037	1/26/18		130,000		128,555

KKR Real Estate Financial Trust Inc Ltd.,2018-FL1, “D”, FLR, 4.852% (LIBOR - 1mo. + 2.55%), 6/15/2036	11/07/18		205,000		204,995

Navistar Financial Dealer Note Master Owner Trust II, Series2018-1, FLR, 4.056% (LIBOR - 1mo. + 1.55%), 9/25/2023	9/17/18		269,000		269,178

NextGear Floorplan Master Owner Trust,2018-1A, “B”, 3.57%, 2/15/2023	3/06/18		199,985		200,159

Total Restricted Securities					$3,368,149

% of Net assets					7.5%

The following abbreviations are used in this report and are defined:

AGM

Assured Guaranty Municipal

CDO

Collateralized Debt Obligation

CJSC

Closed Joint Stock Company

CLO

Collateralized Loan Obligation

FLR

JSC

Joint Stock Company

LIBOR

London Interbank Offered Rate

PLC

Public Limited Company

REIT

Real Estate Investment Trust

Abbreviations indicate amounts shown in currencies other than the U.S. dollar. All amounts are stated in U.S. dollars unless otherwise indicated. A list of abbreviations is shown below:

EUR

Euro

JPY

Japanese Yen

MXN

Mexican Peso

PHP

Philippine Peso

TRY

Turkish Lira

Derivative Contracts at 12/31/18

Forward Foreign Currency Exchange Contracts


Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
Asset Derivatives
TRY	642,000	USD	108,974	Deutsche Bank AG		1/11/2019		$11,728
USD	2,241	EUR	1,918	Goldman Sachs International		1/11/2019		42

								$11,770

Liability Derivatives
MXN	21	USD	1	Goldman Sachs International		1/11/2019		$(0	)
USD	465,388	JPY	52,012,792	State Street Bank Corp.		1/15/2019		(9,466	)
USD	450,361	JPY	51,000,000	Goldman Sachs International		1/07/2019		(14,946	)
USD	442,011	JPY	50,005,450	Goldman Sachs International		1/11/2019		(14,370	)
USD	906,850	JPY	101,600,000	Goldman Sachs International		1/22/2019		(21,226	)
USD	113,075	PHP	6,006,000	JPMorgan Chase Bank N.A.		2/19/2019		(647	)

								$(60,655	)

MFS Strategic Income Portfolio

Portfolio of Investments – continued

Futures Contracts

Description

Long/
Short

Currency

Contracts

Notional
Amount

Expiration
Date

Value/Unrealized
Appreciation
(Depreciation)

Asset Derivatives

Interest Rate Futures

U.S. Treasury Bond 30 yr

Long

USD

$1,606,000

March - 2019

$74,553

U.S. Treasury Note 2 yr

Long

USD

6,581,687

March - 2019

42,922

U.S. Treasury Ultra Bond 30 yr

Long

USD

1,767,219

March - 2019

92,858

$210,333

Liability Derivatives

Interest Rate Futures

U.S. Treasury Ultra Note 10 yr

Short

USD

$3,642,187

March - 2019

$(117,133

)

Cleared Swap Agreements

Maturity
Date

Notional
Amount

Counterparty

Cash Flows
to Receive/
Frequency

Cash Flows
to Pay/
Frequency

Unrealized
Appreciation
(Depreciation)

Net Unamortized
Upfront Payments
(Receipts)

Value

Liability Derivatives

Credit Default Swaps

12/20/23

USD

690,000

centrally cleared

(1)

5% / Quarterly

$(6,583

)

$(8,575

)

$(15,158

)

Uncleared Swap Agreements

Maturity
Date

Notional
Amount

Counterparty

Cash Flows
to Receive/
Frequency

Cash Flows
to Pay/
Frequency

Unrealized
Appreciation
(Depreciation)

Net Unamortized
Upfront Payments
(Receipts)

Value

Asset Derivatives

Credit Default Swaps

11/18/54

USD

900,000

Morgan Stanley

(2)

0.5% / Quarterly

$(321

)

$17,527

$17,206

(1)	Fund, as protection buyer, to receive notional amount upon a defined credit event by a reference obligation specified in the Markit CDX North America High Yield Index.

(2)	Fund, as protection buyer, to receive notional amount upon a defined credit event by a reference obligation specified in the Markit CMBX AAA Index.

At December 31, 2018, the fund had liquid securities with an aggregate value of $79,910 to cover any collateral or margin obligations for certain derivative contracts.

See Notes to Financial Statements

MFS Strategic Income Portfolio

FINANCIAL STATEMENTS ^| STATEMENT OF ASSETS AND LIABILITIES

This statement represents your fund’s balance sheet, which details the assets and liabilities comprising the total value of the fund.


At 12/31/18

Assets
Investments in unaffiliated issuers, at value (identified cost, $35,702,263)	$34,597,689
Investments in affiliated issuers, at value (identified cost, $8,974,737)	7,686,573
Cash	26,298
Foreign currency, at value (identified cost, $2,278,319)	2,322,740
Receivables for
Forward foreign currency exchange contracts	11,770
Net daily variation margin on open futures contracts	2,936
Investments sold	21,497
Interest	278,867
Uncleared swaps, at value (net unamortized premiums paid, $17,527)	17,206
Receivable from investment adviser	7,273
Other assets	586
Total assets	$44,973,435

Liabilities
Payables for
Net daily variation margin on open cleared swap agreements	$1,044
Forward foreign currency exchange contracts	60,655
Due to broker for swap premium	17,533
Fund shares reacquired	111,496
Payable to affiliates
Shareholder servicing costs	103
Distribution and/or service fees	181
Payable for independent Trustees’ compensation	20
Accrued expenses and other liabilities	57,638
Total liabilities	$248,670
Net assets	$44,724,765

Net assets consist of
Paid-in capital	$46,781,636
Total distributable earnings (loss)	(2,056,871	)
Net assets	$44,724,765
Shares of beneficial interest outstanding	4,835,638



	Net assets		Shares outstanding		Net asset value per share
Initial Class		$38,111,036		4,115,651		$9.26
Service Class		6,613,729		719,987		9.19

See Notes to Financial Statements

MFS Strategic Income Portfolio

FINANCIAL STATEMENTS ^| STATEMENT OF OPERATIONS

This statement describes how much your fund earned in investment income and accrued in expenses. It also describes any gains and/or losses generated by fund operations.


Year ended 12/31/18

Net investment income (loss)
Income
Interest	$1,429,393
Dividends from affiliated issuers	542,494
Other	168
Income on securities loaned	2
Foreign taxes withheld	(1,604	)
Total investment income	$1,970,453
Expenses
Management fee	$326,563
Distribution and/or service fees	16,749
Shareholder servicing costs	11,504
Administrative services fee	17,500
Independent Trustees’ compensation	940
Custodian fee	10,493
Shareholder communications	12,070
Audit and tax fees	77,936
Legal fees	1,034
Miscellaneous	24,287
Total expenses	$499,076
Reduction of expenses by investment adviser	(108,499	)
Net expenses	$390,577
Net investment income (loss)	$1,579,876

Realized and unrealized gain (loss)
Realized gain (loss) (identified cost basis)
Unaffiliated issuers	$(545,136	)
Affiliated issuers	(411,187	)
Futures contracts	(49,036	)
Swap agreements	449
Forward foreign currency exchange contracts	838
Foreign currency	(1,537	)
Net realized gain (loss)	$(1,005,609	)
Change in unrealized appreciation or depreciation
Unaffiliated issuers	$(1,332,277	)
Affiliated issuers	(305,791	)
Futures contracts	92,062
Swap agreements	(6,904	)
Forward foreign currency exchange contracts	(48,332	)
Translation of assets and liabilities in foreign currencies	44,437
Net unrealized gain (loss)	$(1,556,805	)
Net realized and unrealized gain (loss)	$(2,562,414	)
Change in net assets from operations	$(982,538	)

See Notes to Financial Statements

MFS Strategic Income Portfolio

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
	12/31/18			12/31/17
Change in net assets

From operations
Net investment income (loss)		$1,579,876			$1,730,642
Net realized gain (loss)		(1,005,609	)		620,201
Net unrealized gain (loss)		(1,556,805	)		746,622
Change in net assets from operations		$(982,538	)		$3,097,465
Total distributions to shareholders (a)		$(1,829,013	)		$(2,356,097	)
Change in net assets from fund share transactions		$(2,160,371	)		$(4,011,928	)
Total change in net assets		$(4,971,922	)		$(3,270,560	)

Net assets
At beginning of period		49,696,687			52,967,247
At end of period (b)		$44,724,765			$49,696,687

(a)	Distributions from net investment income and from net realized gain are no longer required to be separately disclosed. See Note 2. For the year ended December 31, 2017, distributions from net investment income were $2,356,097.

(b)	Parenthetical disclosure of undistributed net investment income is no longer required. See Note 2. For the year ended December 31, 2017, end of period net assets included undistributed net investment income of $1,795,137.

See Notes to Financial Statements

MFS Strategic Income Portfolio

FINANCIAL STATEMENTS ^| FINANCIAL HIGHLIGHTS


Initial Class	Year ended

	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14

Net asset value, beginning of period		$9.84			$9.71			$9.25			$10.01			$10.01

Income (loss) from investment operations
Net investment income (loss) (d)		$0.33			$0.34			$0.40	(c)		$0.37			$0.41
Net realized and unrealized gain (loss)		(0.52	)		0.26			0.37			(0.55	)		(0.08	)
Total from investment operations		$(0.19	)		$0.60			$0.77			$(0.18	)		$0.33

Less distributions declared to shareholders
From net investment income		$(0.39	)		$(0.47	)		$(0.31	)		$(0.58	)		$(0.33	)
Net asset value, end of period (x)		$9.26			$9.84			$9.71			$9.25			$10.01
Total return (%) (k)(r)(s)(x)		(1.99	)		6.24			8.24	(c)		(1.85	)		3.27

Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)(h)		1.03			1.02			0.89	(c)		0.96			0.94
Expenses after expense reductions (f)(h)		0.80			0.80			0.71	(c)		0.80			0.80
Net investment income (loss)		3.42			3.39			4.09	(c)		3.74			4.05
Portfolio turnover		59			72			21			31			21
Net assets at end of period (000 omitted)		$38,111			$42,409			$44,191			$47,422			$59,824

Service Class	Year ended

	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14

Net asset value, beginning of period		$9.75			$9.63			$9.17			$9.92			$9.93

Income (loss) from investment operations
Net investment income (loss) (d)		$0.30			$0.31			$0.37	(c)		$0.34			$0.39
Net realized and unrealized gain (loss)		(0.50	)		0.25			0.37			(0.54	)		(0.09	)
Total from investment operations		$(0.20	)		$0.56			$0.74			$(0.20	)		$0.30

Less distributions declared to shareholders
From net investment income		$(0.36	)		$(0.44	)		$(0.28	)		$(0.55	)		$(0.31	)
Net asset value, end of period (x)		$9.19			$9.75			$9.63			$9.17			$9.92
Total return (%) (k)(r)(s)(x)		(2.11	)		5.88			8.00	(c)		(2.06	)		2.99

Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)(h)		1.28			1.27			1.14	(c)		1.21			1.19
Expenses after expense reductions (f)(h)		1.05			1.05			0.97	(c)		1.05			1.05
Net investment income (loss)		3.17			3.16			3.83	(c)		3.49			3.80
Portfolio turnover		59			72			21			31			21
Net assets at end of period (000 omitted)		$6,614			$7,287			$8,776			$9,548			$10,719

See Notes to Financial Statements

MFS Strategic Income Portfolio

Financial Highlights – continued

(c)	Amount reflects aone-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher.

(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 affiliated 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 affiliated funds have varied expense and fee levels and the fund may own different proportions of the underlying affiliated funds at different times, the amount of fees and expenses incurred indirectly by the fund will vary.

(k)	The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown.

(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.

(x)	The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes.

See Notes to Financial Statements

MFS Strategic Income Portfolio

NOTES TO FINANCIAL STATEMENTS

(1)

Business and Organization

MFS Strategic Income Portfolio (the fund) is a diversified series of MFS Variable Insurance Trust II (the trust). The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as anopen-end management investment company. The shareholders of each series of the trust are separate accounts of insurance companies, which offer variable annuity and/or life insurance products, and qualified retirement and pension plans.

(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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated subsequent events occurring after the date of the fund’s Statement of Assets and Liabilities through the date that the financial statements were issued. The fund invests in the MFS High Yield Pooled Portfolio (“High Yield Pooled Portfolio”). MFS does not receive a management fee from the High Yield Pooled Portfolio. The High Yield Pooled Portfolio’s investment objective is to seek total return with an emphasis on high current income, but also considering capital appreciation. The accounting policies of the High Yield Pooled Portfolio are outlined in its shareholder report, which is available without charge by calling1-800-225-2606 and on the Securities and Exchange Commission (SEC) web site at http://www.sec.gov. The accounting policies detailed in the Significant Accounting Policies note cover both the fund and the High Yield Pooled Portfolio. For purposes of this policy disclosure, “fund” refers to both the fund and the High Yield Pooled Portfolio in which the fund invests. The High Yield Pooled Portfolio’s shareholder report is not covered by this report. The fund and the High Yield Pooled Portfolio invest in high-yield securities rated below investment grade. Investments in below investment grade quality securities can involve a substantially greater risk of default or can already be in default, and their values can decline significantly. Below investment grade quality securities tend to be more sensitive to adverse news about the issuer, or the market or economy in general, than higher quality debt instruments. The fund and the High Yield Pooled Portfolio invest in foreign securities. Investments in foreign securities are vulnerable to the effects of changes in the relative values of the local currency and the U.S. dollar and to the effects of changes in each country’s market, economic, industrial, political, regulatory, geopolitical, and other conditions.

Balance Sheet Offsetting – The fund’s accounting policy with respect to balance sheet offsetting is that, absent an event of default by the counterparty or a termination of the agreement, the International Swaps and Derivatives Association (ISDA) Master Agreement, or similar agreement, does not result in an offset of reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities across transactions between the fund and the applicable counterparty. The fund’s right to setoff may be restricted or prohibited by the bankruptcy or insolvency laws of the particular jurisdiction to which a specific master netting

MFS Strategic Income Portfolio

Notes to Financial Statements – continued

agreement counterparty is subject. Balance sheet offsetting disclosures, to the extent applicable to the fund, have been included in the fund’s Significant Accounting Policies note under the captions for each of the fund’sin-scope financial instruments and transactions.

Investment Valuations – The investments of the fund and the High Yield Pooled Portfolio are valued as described below.

Equity securities, including restricted equity securities, are generally valued at the last sale or official closing price on their primary market or exchange as provided by a third-party pricing service. Equity securities, for which there were no sales reported that day, are generally valued at the last quoted daily bid quotation on their primary market or exchange as provided by a third-party pricing service. Debt instruments and floating rate loans, 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 may be valued at amortized cost, which approximates market value. Exchange-traded options are generally valued at the last sale or official closing price on their primary exchange as provided by a third-party pricing service. Exchange-traded options for which there were no sales reported that day are generally valued at the last daily bid quotation on their primary exchange as provided by athird-party pricing service. Options not traded on an exchange are generally valued at a broker/dealer bid quotation. Foreign currency options are generally valued at valuations provided by a third-party pricing service. Futures contracts are generally valued at last posted settlement price on their primary exchange as provided by a third-party pricing service. Futures contracts for which there were no trades that day for a particular position are generally valued at the closing bid quotation on their primary exchange as provided by a third-party pricing service. Forward foreign currency exchange 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. Swap agreements are generally valued at valuations provided by a third-party pricing service, which for cleared swaps includes an evaluation of any trading activity at the clearinghouses.Open-end investment companies are generally valued at net asset value per share. 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. In determining values, third-party pricing services can utilize both transaction data and market information such as 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.

MFS Strategic Income Portfolio

Notes to Financial Statements – continued

assumptions in determining the fair value of investments. Other financial instruments are derivative instruments, such as futures contracts, forward foreign currency exchange contracts, and swap agreements. The following is a summary of the levels used as of December 31, 2018 in valuing the fund’s assets or liabilities:


Financial Instruments	Level 1			Level 2			Level 3		Total
Equity Securities		$11,573			$—			$—		$11,573
U.S. Treasury Bonds & U.S. Government Agency & Equivalents		—			6,095,662			—		6,095,662
Non-U.S. Sovereign Debt		—			2,725,104			—		2,725,104
Municipal Bonds		—			299,544			—		299,544
U.S. Corporate Bonds		—			9,318,976			—		9,318,976
Residential Mortgage-Backed Securities		—			400,414			—		400,414
Commercial Mortgage-Backed Securities		—			5,487,772			—		5,487,772
Asset-Backed Securities (including CDOs)		—			6,078,967			—		6,078,967
Foreign Bonds		—			4,179,677			—		4,179,677
Mutual Funds		7,686,573			—			—		7,686,573
Total		$7,698,146			$34,586,116			$—		$42,284,262

Other Financial Instruments
Futures Contracts – Assets		$210,333			$—			$—		$210,333
Futures Contracts – Liabilities		(117,133	)		—			—		(117,133	)
Forward Foreign Currency Exchange Contracts – Assets		—			11,770			—		11,770
Forward Foreign Currency Exchange Contracts – Liabilities		—			(60,655	)		—		(60,655	)
Swap Agreements – Assets		—			17,206			—		17,206
Swap Agreements – Liabilities		—			(15,158	)		—		(15,158	)

For further information regarding security characteristics, see the Portfolio of Investments. Please refer to the High Yield Pooled Portfolio’s shareholder report for further information regarding the levels used in valuing its assets or liabilities.

Foreign Currency Translation – Purchases and sales of foreign investments, income, and expenses are converted into U.S. dollars based upon currency exchange rates prevailing on the respective dates of such transactions or on the reporting date for foreign denominated receivables and payables. Gains and losses attributable to foreign currency exchange rates on sales of securities are recorded for financial statement purposes as net realized gains and losses on investments. Gains and losses attributable to foreign exchange rate movements on receivables, payables, income and expenses are recorded for financial statement purposes as foreign currency transaction gains and losses. That portion of both realized and unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed.

The derivative instruments used by the fund during the period were purchased options, futures contracts, forward foreign currency exchange contracts, and swap agreements. Depending on the type of derivative, the fund may exit a derivative position by entering into an offsetting transaction with a counterparty or exchange, negotiating an agreement with the derivative counterparty, or novating the position to a third party. The fund may be unable to promptly close out a futures position in instances where the daily fluctuation in the price for that type of future exceeds the daily limit set by the exchange. The fund’s period end derivatives, as presented in the Portfolio of Investments and the associated Derivative Contract tables, generally are indicative of the volume of its derivative activity during the period.


		Fair Value (a)
Risk	Derivative Contracts	Asset Derivatives		Liability Derivatives
Interest Rate	Interest Rate Futures		$210,333		$(117,133	)
Foreign Exchange	Forward Foreign Currency Exchange Contracts		11,770		(60,655	)
Credit	Credit Default Swaps		17,206		(15,158	)
Total			$239,309		$(192,946	)

(a)

Values presented in this table for futures contracts and cleared swap agreements correspond to the values reported in the fund’s Portfolio of Investments. Only the current day net variation margin for futures contracts and cleared swap agreements is separately reported within the fund’s Statement of Assets and Liabilities.

MFS Strategic Income Portfolio

Notes to Financial Statements – continued


Risk	Futures Contracts			Swap Agreements		Forward Foreign Currency Exchange Contracts		Unaffiliated Issuers (Purchased Options)
Interest Rate		$(49,036	)		$—		$—		$(27,848	)
Foreign Exchange		—			—		838		—
Credit		—			449		—		—
Total		$(49,036	)		$449		$838		$(27,848	)


Risk	Futures Contracts		Swap Agreements			Forward Foreign Currency Exchange Contracts
Interest Rate		$92,062		$—			$—
Foreign Exchange		—		—			(48,332	)
Credit		—		(6,904	)		—
Total		$92,062		$(6,904	)		$(48,332	)

Purchased Options – The fund purchased put options for a premium. Purchased put options entitle the holder to buy and sell a specified number of shares or units of a particular security, currency or index at a specified price at a specified date or within a specified period of time. Purchasing put options may hedge against an anticipated decline in the value of portfolio securities or currency or decrease the fund’s exposure to an underlying instrument.

The premium paid is initially recorded as an investment in the Statement of Assets and Liabilities. That investment is subsequentlymarked-to-market daily with the difference between the premium paid and the market value of the purchased option being recorded as unrealized appreciation or depreciation. Premiums paid for purchased put options which have expired are treated as realized losses on investments in the Statement of Operations. Upon the exercise or closing of a purchased put option, the premium paid is offset against the proceeds on the sale of the underlying security or financial instrument in order to determine the realized gain or loss on investments.

MFS Strategic Income Portfolio

Notes to Financial Statements – continued

Forward Foreign Currency Exchange Contracts – The fund entered into forward foreign currency exchange contracts for the purchase or sale of a specific foreign currency at a fixed price on a future date. These contracts may be used to hedge the fund’s currency risk or fornon-hedging purposes. For hedging purposes, the fund may enter into contracts to deliver or receive foreign currency that the fund will receive from or use in its normal investment activities. The fund may also use contracts to hedge against declines in the value of foreign currency denominated securities due to unfavorable exchange rate movements. Fornon-hedging purposes, the fund may enter into contracts with the intent of changing the relative exposure of the fund’s portfolio of securities to different currencies to take advantage of anticipated exchange rate changes.

Swap Agreements – During the period the fund entered into swap agreements. Swap agreements generally involve a periodic exchange of cash payments on a net basis, at specified intervals or upon the occurrence of specified events, between the fund and a counterparty. Certain swap agreements may be entered into as a bilateral contract (“uncleared swaps”) while others are required to be centrally cleared (“cleared swaps”). In a cleared swap transaction, the ultimate counterparty to the transaction is a clearinghouse (the “clearinghouse”). The contract is transferred and accepted by the clearinghouse immediately following execution of the swap contract with an executing broker. Thereafter, throughout the term of the cleared swap, the fund interfaces indirectly with the clearinghouse through a clearing broker and has counterparty risk to the clearing broker as well.

MFS Strategic Income Portfolio

Notes to Financial Statements – continued

Risks related to swap agreements include the possible lack of a liquid market, unfavorable market and interest rate movements of the underlying instrument and the failure of the counterparty to perform under the terms of the agreements. The fund’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from/paid to the counterparty over the contract’s remaining life, to the extent that the amount is positive. To address counterparty risk, uncleared swap agreements are limited to only highly-rated counterparties. Risk is further reduced by having an ISDA Master Agreement between the fund and the counterparty providing for netting as described above and, where applicable, by the posting of collateral by the counterparty to the fund to cover the fund’s exposure to the counterparty under such ISDA Master Agreement. The fund’s counterparty risk due to cleared swaps is mitigated by the fact that the clearinghouse is the true counterparty to the transaction and the regulatory requirement safeguards in the event of a clearing broker bankruptcy.

The fund entered into credit default swap agreements in order to manage its exposure to the market or certain sectors of the market, to reduce its credit risk exposure to defaults of corporate and sovereign issuers or to create exposure to corporate or sovereign issuers to which it is not otherwise exposed. In a credit default swap agreement, the protection buyer can make an upfront payment and will make a stream of payments to the protection seller based on a fixed percentage applied to the agreement notional amount in exchange for the right to receive a specified return upon the occurrence of a defined credit event on the reference obligation (which may be either a single security or a basket of securities issued by corporate or sovereign issuers) and, with respect to the cases where physical settlement applies, the delivery by the buyer to the seller of a defined deliverable obligation. Although agreement-specific, credit events generally consist of a combination of the following: bankruptcy, failure to pay, restructuring, obligation acceleration, obligation default, or repudiation/moratorium, each as defined in the 2003 ISDA Credit Derivatives Definitions as amended by the relevant agreement. Restructuring is generally not applicable when the reference obligation is issued by a North American corporation and obligation acceleration, obligation default, or repudiation/moratorium are generally only applicable when the reference obligation is issued by a sovereign entity or an entity in an emerging country. Upon determination of the final price for the deliverable obligation (or upon delivery of the deliverable obligation in the case of physical settlement), the difference between the value of the deliverable obligation and the swap agreement’s notional amount is recorded as realized gain or loss on swap agreements in the Statement of Operations.

Credit default swap agreements are considered to have credit-risk-related contingent features since they trigger payment by the protection seller to the protection buyer upon the occurrence of a defined credit event. The maximum amount of future, undiscounted payments that the fund, as protection seller, could be required to make is equal to the swap agreement’s notional amount. The protection seller’s payment obligation would be offset to the extent of the value of the agreement’s deliverable obligation. At December 31, 2018, the fund did not hold any credit default swap agreements at an unrealized loss where it is the protection seller. The fund’s maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the fair value of the agreement.

Security Loans – Under its Securities Lending Agency Agreement with the fund, State Street Bank and Trust Company, as lending agent, loans the securities of the fund to certain qualified institutions (the “Borrowers”) approved by the fund. Security loans can be terminated at the discretion of either the lending agent or the fund and the related securities must be returned within the earlier of the standard trade settlement period for such securities or within three business days. The loans are collateralized by cash and/or U.S. Treasury and federal agency obligations in an amount typically at least equal to the market value of the securities loaned. On loans collateralized by cash, the cash collateral is invested in a money market fund. The market value of the loaned securities is determined at the close of business of the fund and any additional required collateral is delivered to the fund on the next business day. The lending agent provides the fund with indemnification against Borrower default. In the event of Borrower default, the lending agent will, for the benefit of the fund, either purchase securities identical to those loaned or, when such purchase is commercially impracticable, pay the fund the market value of the loaned securities. In return, the lending agent assumes the fund’s rights to the related collateral. If the collateral value is less than the cost to purchase identical securities, the lending agent is responsible for the shortfall, but only to the extent that such shortfall is not due to a decline in collateral value resulting from collateral reinvestment for which the fund bears the risk of loss. A portion of the income generated upon investment of the collateral is remitted to the Borrowers, and the remainder is allocated between the fund and the lending agent. On loans collateralized by U.S. Treasury and/or federal agency obligations, a fee is received from the Borrower, and is allocated between the fund and the lending agent. Income from securities lending is separately reported in the Statement of Operations. The dividend and interest income earned on the securities loaned is accounted for in the same manner as other dividend and interest income. At December 31, 2018, there were no securities on loan or collateral outstanding.

Loans and Other Direct Debt Instruments – The fund invests in loans and loan participations or other receivables. These investments may include standby financing commitments, including revolving credit facilities, which contractually obligate the fund to supply additional cash to the borrower on demand. The fund generally provides this financial support in order to preserve its existing investment or to obtain a more senior secured interest in the assets of the borrower. Loan participations involve a risk of insolvency of the lending bank or other financial intermediary.

MFS Strategic Income Portfolio

Notes to Financial Statements – continued

Indemnifications – Under the 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 the fund. Additionally, in the normal course of business, the fund enters into agreements with service providers that may contain indemnification clauses. The 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.

Book/tax differences primarily relate to defaulted bonds, amortization and accretion of debt securities, and derivative transactions.

The tax character of distributions declared to shareholders for the last two fiscal years is as follows:


	Year ended 12/31/18		Year ended 12/31/17
Ordinary income (including any short-term capital gains)		$1,829,013		$2,356,097

The federal tax cost and the tax basis components of distributable earnings were as follows:


As of 12/31/18

Cost of investments	$45,108,126
Gross appreciation	145,738
Gross depreciation	(2,923,239	)
Net unrealized appreciation (depreciation)	$(2,777,501	)

Undistributed ordinary income	1,557,309
Capital loss carryforwards	(881,148	)
Other temporary differences	44,469


Short-Term	$(330,666	)
Long-Term	(550,482	)
Total	$(881,148	)

MFS Strategic Income Portfolio

Notes to Financial Statements – continued


	From net investment income

	Year ended 12/31/18		Year ended 12/31/17
Initial Class		$1,585,207		$1,994,249
Service Class		243,806		361,848
Total		$1,829,013		$2,356,097

(3)

Transactions with Affiliates


Up to $1 billion			0.70%
In excess of $1 billion			0.65%

MFS has agreed in writing to reduce its management fee by a specified amount if certain MFS mutual fund assets exceed thresholds agreed to by MFS and the fund’s Board of Trustees. For the year ended December 31, 2018, this management fee reduction amounted to $4,443, which is included in the reduction of total expenses in the Statement of Operations. The management fee incurred for the year ended December 31, 2018 was equivalent to an annual effective rate of 0.69% of the fund’s average daily net assets.

The investment adviser has agreed in writing to pay a portion of the fund’s total annual operating expenses, excluding interest, taxes, extraordinary expenses, brokerage and transaction costs, and investment-related expenses (such as fees and expenses associated with investments in investment companies and other similar investment vehicles), such that total annual operating expenses do not exceed 0.80% of average daily net assets for the Initial Class shares and 1.05% of average daily net assets for the Service Class shares. This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until April 30, 2020. For the year ended December 31, 2018, this reduction amounted to $104,056, which is included in the reduction of total expenses in the Statement of Operations.

Shareholder Servicing Agent– MFS Service Center, Inc. (MFSC), a wholly-owned subsidiary of MFS, receives a fee from the fund for its services as shareholder servicing agent. For the year ended December 31, 2018, the fee was $10,896, which equated to 0.0234% annually of the fund’s average daily net assets. MFSC also receives payment from the fund forout-of-pocket expenses paid by MFSC on behalf of the fund. For the year ended December 31, 2018, these costs amounted to $608.

MFS Strategic Income Portfolio

Notes to Financial Statements – continued

Other– This fund and certain other funds managed by MFS (the funds) have entered into a service agreement (the ISO Agreement) which provides for payment of fees solely by the funds to Tarantino LLC in return for the provision of services of an Independent Senior Officer (ISO) for the funds. Frank L. Tarantino serves as the ISO and is an officer of the funds and the sole member of Tarantino LLC. The funds can terminate the ISO Agreement with Tarantino LLC at any time under the terms of the ISO Agreement. For the year ended December 31, 2018, the fee paid by the fund under this agreement was $80 and is included in “Miscellaneous” expense in the Statement of Operations. MFS has agreed to bear all expenses associated with office space, other administrative support, and supplies provided to the ISO.

The fund invests in the High Yield Pooled Portfolio, which is a mutual fund advised by MFS that does not pay management fees to MFS but does incur investment and operating costs. The fund invests in the High Yield Pooled Portfolio to gain exposure to high income debt instruments, rather than investing in high income debt instruments directly. The High Yield Pooled Portfolio does not pay a management fee to MFS or distribution and/or service fee to MFD.

(4)

Portfolio Securities

For the year ended December 31, 2018, purchases and sales of investments, other than purchased option transactions andshort-term obligations, were as follows:


	Purchases		Sales
U.S. Government securities		$5,140,932		$7,686,975
Non-U.S. Government securities		$21,673,782		$24,055,730

(5)

Shares of Beneficial Interest

The 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:


		Year ended 12/31/18						Year ended 12/31/17

		Shares			Amount			Shares			Amount
Shares sold
Initial Class			273,324			$2,588,388			288,818			$2,862,544
Service Class	��		93,876			876,047			92,548			906,325
			367,200			$3,464,435			381,366			$3,768,869

Shares issued to shareholders in reinvestment of distributions
Initial Class			170,087			$1,585,207			204,329			$1,994,249
Service Class			26,357			243,806			37,342			361,848
			196,444			$1,829,013			241,671			$2,356,097

Shares reacquired
Initial Class			(639,667	)		$(6,059,623	)		(730,440	)		$(7,253,077	)
Service Class			(147,390	)		(1,394,196	)		(293,752	)		(2,883,817	)
			(787,057	)		$(7,453,819	)		(1,024,192	)		$(10,136,894	)

Net change
Initial Class			(196,256	)		$(1,886,028	)		(237,293	)		$(2,396,284	)
Service Class			(27,157	)		(274,343	)		(163,862	)		(1,615,644	)
			(223,413	)		$(2,160,371	)		(401,155	)		$(4,011,928	)

(6)

Line of Credit

The fund and certain other funds managed by MFS participate in a $1.25 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 Overnight Bank Funding rate or daily one month LIBOR plus an agreed upon spread. A commitment fee, based on the average daily, unused portion of the committed line of credit, is allocated among the participating funds. In addition, the 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, at a rate equal to the Overnight Bank Funding rate plus an agreed upon spread. For the year ended December 31, 2018, the fund’s commitment fee and interest expense were $268 and $0, respectively, and are included in “Miscellaneous” expense in the Statement of Operations.

MFS Strategic Income Portfolio

Notes to Financial Statements – continued

(7)

Investments in Affiliated Issuers


Affiliated Issuers				Beginning Shares/Par Amount			Acquisitions Shares/Par Amount		Dispositions Shares/Par Amount			Ending Shares/Par Amount

MFS High Yield Pooled Portfolio					1,144,373			111,173		(530,159	)		725,387

MFS Institutional Money Market Portfolio					1,509,122			19,948,296		(20,001,772	)		1,455,646

Affiliated Issuers	Realized Gain (Loss)			Change in Unrealized Appreciation/ Depreciation			Capital Gain Distributions		Dividend Income			Ending Value

MFS High Yield Pooled Portfolio		$(410,613	)		$(305,809	)		$—		$528,647			$6,231,072

MFS Institutional Money Market Portfolio		(574	)		18			—		13,847			1,455,501

		$(411,187	)		$(305,791	)		$—		$542,494			$7,686,573

(8)

Legal Proceedings

In May 2015, the Motors Liquidation Company Avoidance Action Trust (hereafter, “AAT”) served upon the fund a complaint in an adversary proceeding in the U.S. Bankruptcy Court for the Southern District of New York, captionedMotors Liquidation Company Avoidance Action Trust v. JPMorgan Chase Bank, N.A., et al. (No.09-00504 (REG)). The complaint, which was originally filed in 2009 but not served on the fund until 2015, names as defendants over 500 entities (including the fund) that held an interest in a $1.5 billion General Motors (GM) term loan in 2009, when GM filed for bankruptcy. The AAT alleges that the fund and the other term loan lenders were improperly treated as secured lenders with respect to the term loan shortly before and immediately after GM’s bankruptcy, receiving full principal and interest payments under the loan. The AAT alleges that the fund and other term loan lenders should have been treated as unsecured (or partially unsecured) creditors because the main lien securing the collateral was allegedly not perfected at the time of GM’s bankruptcy due to an erroneous filing in October 2008 that terminated the financing statement perfecting the lien. The AAT seeks to claw back payments made to the fund and the other term loan lenders after, and during the 90 days before, GM’s June 2009 bankruptcy petition. During that time period, the fund received term loan payments of approximately $190,000. The fund cannot predict the outcome of this proceeding. Among other things, it is unclear whether the AAT’s claims will succeed; what the fund would be entitled to as an unsecured (or partially unsecured) creditor, given the existence of other collateral not impacted by the erroneous October 2008 filing; whether third parties responsible for the erroneous October 2008 filing would bear some or all of any liability; and the degree to which the fund may be entitled to indemnification from a third party for any amount required to be disgorged. The fund has and will continue to incur legal expenses associated with the defense of this action and in related claims against third parties.

MFS Strategic Income Portfolio

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees of MFS Variable Insurance Trust II and the Shareholders of MFS Strategic Income Portfolio:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities of MFS Strategic Income Portfolio (the “Fund”), including the portfolio of investments, as of December 31, 2018, the related statement 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of December 31, 2018, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

DELOITTE & TOUCHE LLP

Boston, Massachusetts

February 15, 2019

We have served as the auditor of one or more of the MFS investment companies since 1924.

MFS Strategic Income Portfolio

TRUSTEES AND OFFICERS – IDENTIFICATION AND BACKGROUND


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds overseen by the Trustee	Principal Occupations During the Past Five Years	Other Directorships During the Past Five Years (j)
INTERESTED TRUSTEES
Robert J. Manning (k) (age 55)	Trustee	February 2004	135	Massachusetts Financial Services Company, Executive Chairman (since January 2017); Director; Chairman of the Board; Chief Executive Officer (until 2015);Co-Chief Executive Officer(2015-2016)	N/A

Robin A. Stelmach (k) (age 57)	Trustee	January 2014	135	Massachusetts Financial Services Company, Vice Chair (since January 2017); Chief Operating Officer and Executive Vice President (until January 2017)	N/A

INDEPENDENT TRUSTEES
John P. Kavanaugh (age 64)	Trustee and Chair of Trustees	January 2009	135	Private investor	N/A

Steven E. Buller (age 67)	Trustee	February 2014	135	Financial Accounting Standards Advisory Council, Chairman(2014-2015); Public Company Accounting Oversight Board, Standing Advisory Group, Member (until 2014); BlackRock, Inc. (investment management), Managing Director (until 2014), BlackRock Finco UK (investment management), Director (until 2014)	N/A

John A. Caroselli (age 64)	Trustee	March 2017	135	JC Global Advisors, LLC (management consulting), President (since 2015); First Capital Corporation (commercial finance), Executive Vice President (until 2015)	N/A

Maureen R. Goldfarb (age 63)	Trustee	January 2009	135	Private investor	N/A

Michael Hegarty (age 74)	Trustee	December 2004	135	Private investor	Rouse Properties Inc., Director (until 2016); Capmark Financial Group Inc., Director (until 2015)

Peter D. Jones (age 63)	Trustee	January 2019	135	Franklin Templeton Distributors, Inc. (investment management), President (until 2015); Franklin Templeton Institutional, LLC (investment management), Chairman (until 2015)	N/A

James W. Kilman, Jr. (age 57)	Trustee	January 2019	135	KielStrand Capital LLC (family office and merchant bank), Chief Executive Officer (since 2016); Morgan Stanley & Co. (financial services), Vice Chairman of Investment Banking,Co-Head of Diversified Financials Coverage – Financial Institutions Investment Banking Group (until 2016)	alpha-En Corporation, Director (since 2016)

MFS Strategic Income Portfolio

Trustees and Officers – continued


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds overseen by the Trustee	Principal Occupations During the Past Five Years	Other Directorships During the Past Five Years (j)
Clarence Otis, Jr. (age 62)	Trustee	March 2017	135	Darden Restaurants, Inc., Chief Executive Officer (until 2014)	VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director; Federal Reserve Bank of Atlanta, Director (until 2015)

Maryanne L. Roepke (age 62)	Trustee	May 2014	135	American Century Investments (investment management), Senior Vice President and Chief Compliance Officer (until 2014)	N/A

Laurie J. Thomsen (age 61)	Trustee	March 2005	135	Private investor	The Travelers Companies, Director; Dycom Industries, Inc., Director (since 2015)


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds for which the Person is an Officer	Principal Occupations During the Past Five Years
OFFICERS
Christopher R. Bohane (k) (age 45)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Vice President and Assistant General Counsel

Kino Clark (k) (age 50)	Assistant Treasurer	January 2012	135	Massachusetts Financial Services Company, Vice President

John W. Clark, Jr. (k) (age 51)	Assistant Treasurer	April 2017	135	Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head – Treasurer’s Office (until February 2017)

Thomas H. Connors (k) (age 59)	Assistant Secretary and Assistant Clerk	September 2012	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Ethan D. Corey (k) (age 55)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel

David L. DiLorenzo (k) (age 50)	President	July 2005	135	Massachusetts Financial Services Company, Senior Vice President

Heidi W. Hardin (k) (age 51)	Secretary and Clerk	April 2017	135	Massachusetts Financial Services Company, Executive Vice President and General Counsel (since March 2017); Harris Associates (investment management), General Counsel (from September 2015 to January 2017); Janus Capital Management LLC (investment management), Senior Vice President and General Counsel (until September 2015)

Brian E. Langenfeld (k) (age 45)	Assistant Secretary and Assistant Clerk	June 2006	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Amanda S. Mooradian (k) (age 39)	Assistant Secretary and Assistant Clerk	September 2018	135	Massachusetts Financial Services Company, Assistant Vice President and Counsel

Susan A. Pereira (k) (age 48)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Kasey L. Phillips (k) (age 48)	Assistant Treasurer	September 2012	135	Massachusetts Financial Services Company, Vice President

Matthew A. Stowe (k) (age 44)	Assistant Secretary and Assistant Clerk	October 2014	135	Massachusetts Financial Services Company, Vice President and Assistant General Counsel

MFS Strategic Income Portfolio

Trustees and Officers – continued


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds for which the Person is an Officer	Principal Occupations During the Past Five Years
Frank L. Tarantino (age 74)	Independent Senior Officer	June 2004	135	Tarantino LLC (provider of compliance services), Principal

Richard S. Weitzel (k) (age 48)	Assistant Secretary and Assistant Clerk	October 2007	135	Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel

Martin J. Wolin (k) (age 51)	Chief Compliance Officer	July 2015	135	Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer (since July 2015); Mercer (financial service provider), Chief Risk and Compliance Officer, North America and Latin America (until June 2015)

James O. Yost (k) (age 58)	Treasurer	September 1990	135	Massachusetts Financial Services Company, Senior Vice President

(h)

(j)	Directorships or trusteeships of companies required to report to the Securities and Exchange Commission (i.e., “public companies”).

(k)

Messrs. Buller, Hegarty, Kilman and Otis and Ms. Roepke are members of the Trust’s Audit Committee.

Each of the Interested Trustees and certain Officers hold comparable officer positions with certain affiliates of MFS.

The Statement of Additional Information for a Fund includes further information about the Trustees and is available without charge upon request by calling1-800-225-2606.


Investment Adviser Massachusetts Financial Services Company 111 Huntington Avenue Boston, MA 02199-7618		Custodian State Street Bank and Trust Company 1 Lincoln Street Boston, MA 02111-2900
Distributor MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618		Independent Registered Public Accounting Firm Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116
Portfolio Manager(s) Neeraj Arora Philipp Burgener David Cole Alexander Mackey Joshua Marston Robert Persons Michael Skatrud

MFS Strategic Income Portfolio

BOARD REVIEW OF INVESTMENT ADVISORY AGREEMENT

Based on information provided by Broadridge and MFS, the Trustees reviewed the Fund’s total return investment performance as well as the Broadridge performance universe over various time periods. The Trustees placed particular emphasis on the total return performance of the Fund’s Initial Class shares in comparison to the performance of funds in its Broadridge performance universe over the three-year period ended December 31, 2017, which the Trustees believed was a long enough period to reflect differing market conditions. The total return performance of the Fund’s Initial Class shares was in the 2nd quintile relative to the other funds in the universe for this three-year period (the 1st quintile being the best performers and the 5th quintile being the worst performers). The total return performance of the Fund’s Initial Class shares was in the 3rd quintile for theone-year period and the 2nd quintile for the five-year period ended December 31, 2017 relative to the Broadridge performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.

MFS Strategic Income Portfolio

Board Review of Investment Advisory Agreement – continued

In assessing the reasonableness of the Fund’s advisory fee, the Trustees considered, among other information, the Fund’s advisory fee and the total expense ratio of the Fund’s Initial Class shares as a percentage of average daily net assets and the advisory fee and total expense ratios of peer groups of funds based on information provided by Broadridge. The Trustees considered that MFS currently observes an expense limitation for the Fund, which may not be changed without the Trustees’ approval. The Trustees also considered that, according to the data provided by Broadridge (which takes into account any fee reductions or expense limitations that were in effect during the Fund’s last fiscal year), the Fund’s effective advisory fee rate was approximately at the Broadridge expense group median and the Fund’s total expense ratio was higher than the Broadridge expense group median.

The Trustees also considered whether the Fund may benefit from any economies of scale in the management of the Fund in the event of growth in assets of the Fund and/or growth in assets of the MFS Funds as a whole. They noted that the Fund’s advisory fee rate schedule is subject to a contractual breakpoint that reduces the Fund’s advisory fee rate on average daily net assets over $1 billion. The Trustees also noted that MFS has agreed in writing to waive a portion of the management fees of certain MFS Funds, including the Fund, if the total combined assets of certain funds within the MFS Funds’ complex increase above agreed upon thresholds (the “group fee waiver”), enabling the Fund’s shareholders to share in the benefits from any economies of scale at the complex level. The group fee waiver is reviewed and renewed annually between the Board and MFS. The Trustees concluded that the breakpoint and the group fee waiver were sufficient to allow the Fund to benefit from economies of scale as its assets and overall complex assets grow.

MFS Strategic Income Portfolio

PROXY VOTING POLICIES AND INFORMATION

QUARTERLY PORTFOLIO DISCLOSURE

FURTHER INFORMATION

INFORMATION ABOUT FUND CONTRACTS AND LEGAL CLAIMS

rev. 3/16



FACTS		WHAT DOES MFS DO WITH YOUR PERSONAL INFORMATION?


Why?		Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.

What?

The types of personal information we collect and share depend on the product or service you have with us. This information can include:

• Social Security number and account balances

• Account transactions and transaction history

• Checking account information and wire transfer instructions

When you areno longer our customer, we continue to share your information as described in this notice.


How?		All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons MFS chooses to share; and whether you can limit this sharing.


Reasons we can share your personal information	Does MFS share?	Can you limit this sharing?
For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes – to offer our products and services to you	No	We don’t share
For joint marketing with other financial companies	No	We don’t share
For our affiliates’ everyday business purposes – information about your transactions and experiences	No	We don’t share
For our affiliates’ everyday business purposes – information about your creditworthiness	No	We don’t share
For nonaffiliates to market to you	No	We don’t share



Questions?		Call800-225-2606 or go tomfs.com.


Page 2


Who we are
Who is providing this notice?		MFS Funds, MFS Investment Management, MFS Institutional Advisors, Inc., and MFS Heritage Trust Company.


What we do
How does MFS protect my personal information?		To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include procedural, electronic, and physical safeguards for the protection of the personal information we collect about you.
How does MFS collect my personal information?		We collect your personal information, for example, when you • open an account or provide account information • direct us to buy securities or direct us to sell your securities • make a wire transfer We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can’t I limit all sharing?		Federal law gives you the right to limit only • sharing for affiliates’ everyday business purposes – information about your creditworthiness • affiliates from using your information to market to you • sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing.


Definitions
Affiliates		Companies related by common ownership or control. They can be financial and nonfinancial companies. • MFS does not share personal information with affiliates, except for everyday business purposes as described on page one of this notice.
Nonaffiliates		Companies not related by common ownership or control. They can be financial and nonfinancial companies. • MFS does not share with nonaffiliates so they can market to you.
Joint marketing		A formal agreement between nonaffiliated financial companies that together market financial products or services to you. • MFS doesn’t jointly market.


Other important information
If you own an MFS product or receive an MFS service in the name of a third party such as a bank or broker-dealer, their privacy policy may apply to you instead of ours.

LOGO

Annual Report

December 31, 2018

LOGO

MFS^® Technology Portfolio

LOGO

MFS^® Variable Insurance Trust II

TKS-ANN

MFS® Technology Portfolio

CONTENTS

The report is prepared for the general information of contract owners. 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 OR CREDIT UNION GUARANTEE• NOT A DEPOSIT• NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY OR NCUA/NCUSIF

MFS Technology Portfolio

LETTER FROM THE EXECUTIVE CHAIRMAN

LOGO

Dear Contract Owners:

Respectfully,

LOGO

Robert J. Manning

Executive Chairman

MFS Investment Management

February 15, 2019

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

MFS Technology Portfolio

PORTFOLIO COMPOSITION

Portfolio structure

LOGO


Top ten holdings
Alphabet, Inc., “A”			10.1%
Amazon.com, Inc.			6.9%
Facebook, Inc., “A”			6.1%
Microsoft Corp.			5.4%
Visa, Inc., “A”			4.6%
Salesforce.com, Inc.			4.5%
Adobe Systems, Inc.			4.1%
Mastercard, Inc., “A”			3.8%
Microchip Technology, Inc.			3.2%
Apple, Inc.			2.5%


Top five industries
Business Services			19.8%
Internet			19.5%
Computer Software			18.3%
Other Banks & Diversified Financials			8.4%
Computer Software – Systems			8.4%

Percentages are based on net assets as of December 31, 2018.

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

MFS Technology Portfolio

MANAGEMENT REVIEW

Summary of Results

For the twelve months ended December 31, 2018, Initial Class shares of the MFS Technology Portfolio (“fund”) provided a total return of 1.73%, while Service Class shares of the fund provided a total return of 1.52%. These compare with a return of –4.38% over the same period for the fund’s benchmark, the Standard & Poor’s 500 Stock Index, and a return of 2.88% for the fund’s other benchmark, the Standard & Poor’s North American Technology Sector Index.

Market Environment

Detractors from Performance

Stock selection in thebusiness services industry detracted from performance relative to the Standard & Poor’s North American Technology Sector Index. Here, the fund’s overweight position in information technology company DXC Technology held back relative returns. Shares of DXC Technology declined after the company missed, and lowered, revenue expectations, driven by execution challenges in its Digital business and foreign exchange headwinds.

The fund’s overweight allocation to theinternetindustry also hurt relative performance. Within this industry, the fund’s overweight position in social media giant Facebook detracted from relative returns as the company’s stock price trended downward onlower-than-expected revenues. Facebook expected further revenue deceleration as data privacy initiatives continued to put pressure on pricing growth. In addition, there appeared to have been negative investor sentiment following the Cambridge Analytica data privacy scandal, which further weighed on the stock’s price. The fund’s holdings of Chinese online and mobile retailer Alibaba Group Holding (b) (China) were also among its top relative detractors during the reporting period.

An underweight allocation to thespecialty storeindustry weakened relative performance. The fund’s holdings of internet retailer Amazon.com hurt relative results as the company’s share price declined over the reporting period. The firm announced it would be raising the minimum wage of all US workers to $15 an hour, a move that appeared to have fueled concerns among some investors about declining future profit margins. Additionally, the company reported mixed earnings results that saw greater-than-expected profit margins, primarily driven by Amazon Web Services, but lower-than-expected sales results as retail sales growth was limited.

Elsewhere, the fund’s overweight holdings of broadband communications and networking services provider Broadcom (h), information technology services provider Presidio and semiconductor manufacturer Microchip Technology dampened relative performance. An underweight position in software giant Microsoft, not owning shares of network equipment company Cisco Systems and the fund’s short position in IT management software and solutions provider CA Technologies (h), further held back relative returns.

MFS Technology Portfolio

Management Review – continued

Contributors to Performance

Stock selection within thecomputer softwareindustry was a primary contributor to relative performance. Within this industry, the fund’s overweight position in customer information software manager Salesforce.com, software company Adobe Systems, open source infrastructure and integration software provider MuleSoft (h) and communication and collaboration solutions provider RingCentral bolstered relative returns. Shares of RingCentral appreciated during the reporting period after the company reported strong financial results, well ahead of consensus, primarily due to an increase in software subscription revenues. The company also raised its full-year subscription revenue guidance figures towards the higher end of the range, which further benefited the stock.

A combination of security selection and an underweight allocation to thecomputer systemsindustry also aided relative performance. Here, the fund’s underweight position in poor-performing diversified technology products and services company International Business Machines (IBM) (h) contributed to relative returns. The stock price of IBM declined as the company reported earnings per share results that were below consensus estimates. The underperformance, relative to the forecast, was driven byweaker-than-expected growth in the company’s cognitive unit. Underweighting computer and personal electronics maker Apple also helped the fund’s relative returns as the company’s shares came under pressure following softer-than-anticipated iPhone demand, lower revenue from its Services segment and a potential new 10% tariff on iPhones, imposed by the US administration. The timing of the fund’s ownership in shares of security risk intelligence solutions provider Rapid7 further boosted relative performance.

Elsewhere, the fund’s underweight position in computer graphics processors maker NVIDIA (h) helped relative performance. The fund’s position in shares of internet video streaming services provider iQIYI (b)(h) (China), and an overweight position in internet TV show and movie subscription services provider Netflix, also benefited relative returns.

Respectfully,

Portfolio Manager(s)

Matthew Sabel

(b)	Security is not a benchmark constituent.

(h)	Security was not held in the fund at period end.

MFS Technology Portfolio

PERFORMANCE SUMMARY THROUGH 12/31/18

Growth of a Hypothetical $10,000 Investment

LOGO

Total Returns through 12/31/18

Average annual total returns


	Share Class	Class Inception Date	1-yr	5-yr	10-yr
	Initial Class	6/16/00	1.73%	13.51%	20.20%
	Service Class	8/24/01	1.52%	13.24%	19.90%

Comparative benchmark(s)
	Standard & Poor’s 500 Stock Index (f)		(4.38)%	8.49%	13.12%
	Standard & Poor’s North American Technology Sector Index (f)		2.88%	15.32%	19.14%

(f)	Source: FactSet Research Systems Inc.

Benchmark Definition(s)

Standard & Poor’s 500 Stock Index – a market capitalization-weighted index of 500 widely held equity securities, designed to measure broad U.S. equity performance.

Standard & Poor’s North American Technology Sector Index – a modified market capitalization-weighted index that measures the performance of selected technology stocks.

It is not possible to invest directly in an index.

Notes to Performance Summary

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

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

MFS Technology Portfolio

EXPENSE TABLE

Fund Expenses Borne by the Contract Holders during the Period,

July 1, 2018 through December 31, 2018

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period July 1, 2018 through December 31, 2018.

Actual Expenses

Hypothetical Example for Comparison Purposes


Share Class		Annualized Expense Ratio		Beginning Account Value 7/01/18		Ending Account Value 12/31/18		Expenses Paid During Period (p) 7/01/18-12/31/18
Initial Class	Actual		0.99%		$1,000.00		$872.13		$4.67
Initial Class	Hypothetical (h)		0.99%		$1,000.00		$1,020.21		$5.04
Service Class	Actual		1.17%		$1,000.00		$871.13		$5.52
Service Class	Hypothetical (h)		1.17%		$1,000.00		$1,019.31		$5.96

(h)	5% class return per year before expenses.

(p)	“Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect theone-half year period).

Notes to Expense Table

Expense ratios include 0.08% of investment related expenses from short sales (See Note 2 of the Notes to Financial Statements) that are outside of the expense limitation arrangement (See Note 3 of the Notes to Financial Statements).

MFS Technology Portfolio

PORTFOLIO OF INVESTMENTS – 12/31/18

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



Issuer	Shares/Par		Value ($)
COMMON STOCKS – 97.8%
Aerospace – 3.0%
CACI International, Inc., “A” (a)		941	$	135,532
FLIR Systems, Inc.		9,644		419,900
Harris Corp.		4,726		636,356
Northrop Grumman Corp.		2,131		521,882

			$	1,713,670

Biotechnology – 1.4%
Bio-Techne Corp.		3,461	$	500,876
Illumina, Inc. (a)		1,011		303,229

			$	804,105

Broadcasting – 0.3%
Netflix, Inc. (a)		538	$	144,001

Brokerage & Asset Managers – 1.0%
NASDAQ, Inc.		7,226	$	589,425

Business Services – 19.8%
Cognizant Technology Solutions Corp., “A”		11,239	$	713,452
Dropbox, Inc. (a)		13,308		271,882
DXC Technology Co.		25,959		1,380,240
Endava PLC, ADR (a)		17,143		415,546
EVO Payments, Inc., “A” (a)		12,592		310,645
Fidelity National Information Services, Inc.		9,802		1,005,195
First Data Corp. (a)		17,828		301,472
Fiserv, Inc. (a)		15,327		1,126,381
FleetCor Technologies, Inc. (a)		3,228		599,504
Global Payments, Inc.		10,833		1,117,207
Grand Canyon Education, Inc. (a)		5,636		541,845
PayPal Holdings, Inc. (a)		16,001		1,345,524
Total System Services, Inc.		12,847		1,044,333
TransUnion		9,618		546,302
Verisk Analytics, Inc., “A” (a)		4,121		449,354

			$	11,168,882

Computer Software – 18.3%
2U, Inc. (a)		521	$	25,904
Adobe Systems, Inc. (a)		10,149		2,296,110
Autodesk, Inc. (a)		6,018		773,975
Eventbrite, Inc. (a)		10,801		300,376
Microsoft Corp.		30,193		3,066,703
PTC, Inc. (a)		6,163		510,913
RingCentral, Inc. (a)		5,048		416,157
Salesforce.com, Inc. (a)		18,705		2,562,024
Zendesk, Inc. (a)		6,028		351,854

			$	10,304,016

Computer Software – Systems – 8.4%
Apple, Inc.		9,010	$	1,421,237
Constellation Software, Inc.		843		539,602
EPAM Systems, Inc. (a)		3,462		401,627
HubSpot, Inc. (a)		2,714		341,231
New Relic, Inc. (a)		3,788		306,714
Pluralsight, Inc., “A” (a)		13,510		318,161



Issuer	Shares/Par		Value ($)
COMMON STOCKS – continued
Computer Software – Systems – continued
Presidio, Inc.		42,487	$	554,455
Rapid7, Inc. (a)		7,148		222,732
ServiceNow, Inc. (a)		3,421		609,109

			$	4,714,868

Electrical Equipment – 2.4%
Amphenol Corp., “A”		7,577	$	613,889
TE Connectivity Ltd.		9,762		738,300

			$	1,352,189

Electronics – 4.7%
Applied Materials, Inc.		23,332	$	763,890
Microchip Technology, Inc.		24,747		1,779,804
Silicon Laboratories, Inc. (a)		378		29,790
VICOR Corp. (a)		2,106		79,586

			$	2,653,070

Internet – 19.5%
Alibaba Group Holding Ltd., ADR (a)		2,515	$	344,731
Alphabet, Inc., “A” (a)(s)		5,455		5,700,257
Facebook, Inc., “A” (a)		26,042		3,413,846
Farfetch Ltd., “A” (a)		12,781		226,351
Godaddy, Inc. (a)		10,724		703,709
Spotify Technology S.A. (a)		1,966		223,141
Wix.com Ltd. (a)		3,848		347,628

			$	10,959,663

Leisure & Toys – 2.2%
Activision Blizzard, Inc.		10,348	$	481,906
Electronic Arts, Inc. (a)		9,387		740,728

			$	1,222,634

Medical & Health Technology & Services – 0.4%
Guardant Health, Inc. (a)		6,615	$	248,658

Medical Equipment – 0.2%
Senseonics Holdings, Inc. (a)(l)		39,215	$	101,567

Other Banks & Diversified Financials – 8.4%
Mastercard, Inc., “A”		11,365	$	2,144,007
Visa, Inc., “A”		19,628		2,589,719

			$	4,733,726

Printing & Publishing – 0.9%
IHS Markit Ltd. (a)		10,921	$	523,880

Specialty Stores – 6.9%
Amazon.com, Inc. (a)(s)		2,582	$	3,878,086

Total Common Stocks (Identified Cost, $49,815,611)			$	55,112,440

MFS Technology Portfolio

Portfolio of Investments – continued



Issuer	Shares/Par		Value ($)
INVESTMENT COMPANIES (h) – 2.0%
Money Market Funds – 2.0%
MFS Institutional Money Market Portfolio, 2.4% (v) (Identified Cost, $1,116,606)		1,116,717	$	1,116,606


COLLATERAL FOR SECURITIES LOANED – 0.1%
State Street Navigator Securities Lending Government Money Market Portfolio, 2.29% (j) (Identified Cost, $25,784)		25,784	$	25,784

OTHER ASSETS, LESS LIABILITIES – 0.1%				72,741

NET ASSETS – 100.0%			$	56,327,571

(a)

Non-income producing security.

(h)

(j)

The rate quoted is the annualizedseven-day yield of the fund at period end.

(l)

A portion of this security is on loan. See Note 2 for additional information.

(s)

Security or a portion of the security was pledged to cover collateral requirements for securities sold short. At December 31, 2018, the fund had no short sales outstanding.

(v)

The following abbreviations are used in this report and are defined:

ADR

American Depositary Receipt

PLC

Public Limited Company

At December 31, 2018, the fund had cash collateral of $163,078 and other liquid securities with an aggregate value of $395,498 to cover any collateral or margin obligations for securities sold short. Restricted cash and/or deposits with brokers in the Statement of Assets and Liabilities are comprised of cash collateral.

See Notes to Financial Statements

MFS Technology Portfolio

FINANCIAL STATEMENTS ^| STATEMENT OF ASSETS AND LIABILITIES

This statement represents your fund’s balance sheet, which details the assets and liabilities comprising the total value of the fund.


At 12/31/18

Assets
Investments in unaffiliated issuers, at value, including $28,803 of securities on loan (identified cost, $49,841,395)			$55,138,224
Investments in affiliated issuers, at value (identified cost, $1,116,606)			1,116,606
Deposits with brokers for
Securities sold short			163,078
Receivables for
Fund shares sold			11,529
Interest and dividends			10,625
Other assets			1,090
Total assets			$56,441,152

Liabilities
Payables for
Fund shares reacquired			$19,150
Collateral for securities loaned, at value (c)			25,784
Payable to affiliates
Investment adviser			4,744
Shareholder servicing costs			19
Distribution and/or service fees			1,070
Payable for independent Trustees’ compensation			48
Accrued expenses and other liabilities			62,766
Total liabilities			$113,581
Net assets			$56,327,571

Net assets consist of
Paid-in capital			$44,468,101
Total distributable earnings (loss)			11,859,470
Net assets			$56,327,571
Shares of beneficial interest outstanding			3,371,511



	Net assets		Shares outstanding		Net asset value per share
Initial Class		$17,056,024		983,359		$17.34
Service Class		39,271,547		2,388,152		16.44

(c)	Non-cash collateral is not included.

See Notes to Financial Statements

MFS Technology Portfolio

FINANCIAL STATEMENTS ^| STATEMENT OF OPERATIONS

This statement describes how much your fund earned in investment income and accrued in expenses. It also describes any gains and/or losses generated by fund operations.


Year ended 12/31/18

Net investment income (loss)
Income
Dividends	$1,064,862
Dividends from affiliated issuers	75,175
Other	71,501
Income on securities loaned	22,038
Foreign taxes withheld	(1,722	)
Total investment income	$1,231,854
Expenses
Management fee	$1,730,046
Distribution and/or service fees	511,483
Shareholder servicing costs	9,630
Administrative services fee	43,642
Independent Trustees’ compensation	7,189
Custodian fee	21,066
Shareholder communications	32,919
Audit and tax fees	56,070
Legal fees	2,596
Dividend and interest expense on securities sold short	167,250
Miscellaneous	26,825
Total expenses	$2,608,716
Reduction of expenses by investment adviser	(21,868	)
Net expenses	$2,586,848
Net investment income (loss)	$(1,354,994	)

Realized and unrealized gain (loss)
Realized gain (loss) (identified cost basis)
Unaffiliated issuers	$109,499,236
Affiliated issuers	(69	)
Securities sold short	(1,144,257	)
Foreign currency	17
Net realized gain (loss)	$108,354,927
Change in unrealized appreciation or depreciation
Unaffiliated issuers	$(82,709,399	)
Securities sold short	(11,654	)
Net unrealized gain (loss)	$(82,721,053	)
Net realized and unrealized gain (loss)	$25,633,874
Change in net assets from operations	$24,278,880

See Notes to Financial Statements

MFS Technology Portfolio

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
	12/31/18			12/31/17
Change in net assets

From operations
Net investment income (loss)		$(1,354,994	)		$(967,974	)
Net realized gain (loss)		108,354,927			11,114,663
Net unrealized gain (loss)		(82,721,053	)		48,774,621
Change in net assets from operations		$24,278,880			$58,921,310
Total distributions to shareholders (a)		$(15,602,152	)		$(4,319,221	)
Change in net assets from fund share transactions		$(183,617,707	)		$34,910,824
Total change in net assets		$(174,940,979	)		$89,512,913

Net assets
At beginning of period		231,268,550			141,755,637
At end of period		$56,327,571			$231,268,550

(a)	Distributions from net investment income and from net realized gain are no longer required to be separately disclosed. See Note 2. For the year ended December 31, 2017, distributions from net realized gain were $4,319,221.

See Notes to Financial Statements

MFS Technology Portfolio

FINANCIAL STATEMENTS ^| FINANCIAL HIGHLIGHTS


Initial Class	Year ended

	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14

Net asset value, beginning of period		$17.96			$13.19			$12.45			$11.63			$10.71

Income (loss) from investment operations
Net investment income (loss) (d)		$(0.07	)		$(0.05	)		$(0.01	)(c)		$(0.03	)		$(0.02	)
Net realized and unrealized gain (loss)		0.58			5.16			1.10			1.22			1.16
Total from investment operations		$0.51			$5.11			$1.09			$1.19			$1.14

Less distributions declared to shareholders
From net realized gain		$(1.13	)		$(0.34	)		$(0.35	)		$(0.37	)		$(0.22	)
Net asset value, end of period (x)		$17.34			$17.96			$13.19			$12.45			$11.63
Total return (%) (k)(r)(s)(x)		1.73			39.00			8.69	(c)		10.75			10.71

Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)		0.94			0.88			0.85	(c)		0.91			0.94
Expenses after expense reductions (f)		0.93			0.88			0.85	(c)		0.91			0.93
Net investment income (loss)		(0.38	)		(0.29	)		(0.10	)(c)		(0.22	)		(0.20	)
Portfolio turnover		39			31			36			45			35
Net assets at end of period (000 omitted)		$17,056			$27,659			$15,195			$15,588			$16,062

Supplemental Ratios (%):
Ratio of expenses to average net assets after expense reductions excluding short sale expenses (f)		0.85			0.85			0.82	(c)		0.89			0.91

Service Class	Year ended

	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14

Net asset value, beginning of period		$17.11			$12.61			$11.95			$11.20			$10.35

Income (loss) from investment operations
Net investment income (loss) (d)		$(0.12	)		$(0.08	)		$(0.04	)(c)		$(0.05	)		$(0.05	)
Net realized and unrealized gain (loss)		0.58			4.92			1.05			1.17			1.12
Total from investment operations		$0.46			$4.84			$1.01			$1.12			$1.07

Less distributions declared to shareholders
From net realized gain		$(1.13	)		$(0.34	)		$(0.35	)		$(0.37	)		$(0.22	)
Net asset value, end of period (x)		$16.44			$17.11			$12.61			$11.95			$11.20
Total return (%) (k)(r)(s)(x)		1.52			38.65			8.39	(c)		10.53			10.40

Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)		1.16			1.14			1.10	(c)		1.16			1.19
Expenses after expense reductions (f)		1.15			1.13			1.10	(c)		1.16			1.18
Net investment income (loss)		(0.61	)		(0.53	)		(0.35	)(c)		(0.47	)		(0.45	)
Portfolio turnover		39			31			36			45			35
Net assets at end of period (000 omitted)		$39,272			$203,610			$126,561			$106,002			$81,693

Supplemental Ratios (%):
Ratio of expenses to average net assets after expense reductions excluding short sale expenses (f)		1.07			1.10			1.06	(c)		1.14			1.16

See Notes to Financial Statements

MFS Technology Portfolio

Financial Highlights – continued

(c)	Amount reflects aone-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher.

(d)	Per share data is based on average shares outstanding.

(f)	Ratios do not reflect reductions from fees paid indirectly, if applicable.

(k)	The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown.

(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.

(x)	The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes.

See Notes to Financial Statements

MFS Technology Portfolio

NOTES TO FINANCIAL STATEMENTS

(1)

Business and Organization

MFS Technology Portfolio (the fund) is anon-diversified series of MFS Variable Insurance Trust II (the trust). The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as anopen-end management investment company. The shareholders of each series of the trust are separate accounts of insurance companies, which offer variable annuity and/or life insurance products, and qualified retirement and pension plans.

(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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated subsequent events occurring after the date of the fund’s Statement of Assets and Liabilities through the date that the financial statements were issued. The fund invests primarily in securities of issuers in the technology industry. Issuers in a single industry can react similarly to market, currency, political, economic, regulatory, geopolitical, and other conditions. The value of stocks in the technology sector can be very volatile due to the rapid pace of product change, technological developments, and other factors.

Investment Valuations– Equity securities, including restricted equity securities and equity securities sold short, are generally valued at the last sale or official closing price on their primary market or exchange as provided by a third-party pricing service. Equity securities, for which there were no sales reported that day, are generally valued at the last quoted daily bid quotation on their primary market or exchange as provided by a third-party pricing service. Equity securities sold short, for which there were no sales reported for that day, are generally valued at the last quoted daily ask quotation on their primary market or exchange as provided by a third-party pricing service. Short-term instruments with a maturity at issuance of 60 days or less may be valued at amortized cost, which approximates market value.Open-end investment companies are generally valued at net asset value per share. 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. In determining values, third-party pricing services can utilize both transaction data and market information such as 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.

MFS Technology Portfolio

Notes to Financial Statements – continued

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 the 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 effect 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 the 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 the fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the fund determines its net asset value per share.


Financial Instruments	Level 1		Level 2		Level 3		Total
Equity Securities		$55,112,440		$—		$—		$55,112,440
Mutual Funds		1,142,390		—		—		1,142,390
Total		$56,254,830		$—		$—		$56,254,830

For further information regarding security characteristics, see the Portfolio of Investments.

Short Sales– The fund entered into short sales whereby it sells a security it does not own in anticipation of a decline in the value of that security. The fund will realize a gain if the security price decreases and a loss if the security price increases between the date of the short sale and the date on which the fund replaces the borrowed security. Losses from short sales can exceed the proceeds of the security sold; and they can also exceed the potential loss from an ordinary buy and sell transaction. The amount of any premium, dividends, or interest the fund may be required to pay in connection with a short sale will be recognized as a fund expense. During the year ended December 31, 2018, this expense amounted to $167,250. The fund segregates cash or marketable securities in an amount that, when combined with the amount of proceeds from the short sale deposited with the broker, at least equals the current market value of the security sold short. At December 31, 2018, the fund had no short sales outstanding.

MFS Technology Portfolio

Notes to Financial Statements – continued

at the close of business of the fund and any additional required collateral is delivered to the fund on the next business day. The lending agent provides the fund with indemnification against Borrower default. In the event of Borrower default, the lending agent will, for the benefit of the fund, either purchase securities identical to those loaned or, when such purchase is commercially impracticable, pay the fund the market value of the loaned securities. In return, the lending agent assumes the fund’s rights to the related collateral. If the collateral value is less than the cost to purchase identical securities, the lending agent is responsible for the shortfall, but only to the extent that such shortfall is not due to a decline in collateral value resulting from collateral reinvestment for which the fund bears the risk of loss. At period end, the fund had investment securities on loan, all of which were classified as equity securities in the fund’s Portfolio of Investments, with a fair value of $28,803. The fair value of the fund’s investment securities on loan and a related liability of $25,784 for cash collateral received on securities loaned are both presented gross in the Statement of Assets and Liabilities. Additionally, these loans were collateralized by U.S. Treasury Obligations of $4,802 held by the lending agent. The collateral on securities loaned exceeded the value of securities on loan at period end. The liability for cash collateral for securities loaned is carried at fair value, which is categorized as level 2 within the fair value hierarchy. A portion of the income generated upon investment of the collateral is remitted to the Borrowers, and the remainder is allocated between the fund and the lending agent. On loans collateralized by U.S. Treasury and/or federal agency obligations, a fee is received from the Borrower, and is allocated between the fund and the lending agent. Income from securities lending is separately reported in the Statement of Operations. The dividend and interest income earned on the securities loaned is accounted for in the same manner as other dividend and interest income.

Investment Transactions and Income – Investment transactions are recorded on the trade date. Interest income is recorded on the accrual basis. Dividends received in cash are recorded on theex-dividend date. Certain dividends from foreign securities will be recorded when the fund is informed of the dividend if such information is obtained subsequent to theex-dividend date. Dividend payments received in additional securities are recorded on theex-dividend date in an amount equal to the value of the security on such date.

Book/tax differences primarily relate to wash sale loss deferrals, straddle loss deferrals, and redemptionsin-kind.

The tax character of distributions declared to shareholders for the last two fiscal years is as follows:


	Year ended 12/31/18		Year ended 12/31/17
Ordinary income (including any short-term capital gains)		$3,607,065		$829,123
Long-term capital gains		11,995,087		3,490,098
Total distributions		$15,602,152		$4,319,221

MFS Technology Portfolio

Notes to Financial Statements – continued

The federal tax cost and the tax basis components of distributable earnings were as follows:


As of 12/31/18

Cost of investments	$51,351,449
Gross appreciation	9,480,563
Gross depreciation	(4,577,182	)
Net unrealized appreciation (depreciation)	$4,903,381

Undistributed ordinary income	96,810
Undistributed long-term capital gain	6,859,279


	From net realized gain

	Year ended 12/31/18		Year ended 12/31/17
Initial Class		$1,094,630		$498,246
Service Class		14,507,522		3,820,975
Total		$15,602,152		$4,319,221

(3)

Transactions with Affiliates


Up to $1 billion			0.75%
In excess of $1 billion			0.70%

MFS has agreed in writing to reduce its management fee by a specified amount if certain MFS mutual fund assets exceed thresholds agreed to by MFS and the fund’s Board of Trustees. For the year ended December 31, 2018, this management fee reduction amounted to $21,868, which is included in the reduction of total expenses in the Statement of Operations. The management fee incurred for the year ended December 31, 2018 was equivalent to an annual effective rate of 0.74% of the fund’s average daily net assets.

The investment adviser has agreed in writing to pay a portion of the fund’s total annual operating expenses, excluding interest, taxes, extraordinary expenses, brokerage and transaction costs, and investment-related expenses (such as short sale dividend and interest expenses incurred in connection with the fund’s investment activity), such that total annual operating expenses do not exceed 1.00% of average daily net assets for the Initial Class shares and 1.25% of average daily net assets for the Service Class shares. This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until April 30, 2020. For the year ended December 31, 2018, the fund’s actual operating expenses did not exceed the limit and therefore, the investment adviser did not pay any portion of the fund’s expenses related to this agreement.

Shareholder Servicing Agent– MFS Service Center, Inc. (MFSC), a wholly-owned subsidiary of MFS, receives a fee from the fund for its services as shareholder servicing agent. For the year ended December 31, 2018, the fee was $9,326, which equated to 0.0040% annually of the fund’s average daily net assets. MFSC also receives payment from the fund forout-of-pocket expenses paid by MFSC on behalf of the fund. For the year ended December 31, 2018, these costs amounted to $304.

MFS Technology Portfolio

Notes to Financial Statements – continued

Other– This fund and certain other funds managed by MFS (the funds) have entered into a service agreement (the ISO Agreement) which provides for payment of fees solely by the funds to Tarantino LLC in return for the provision of services of an Independent Senior Officer (ISO) for the funds. Frank L. Tarantino serves as the ISO and is an officer of the funds and the sole member of Tarantino LLC. The funds can terminate the ISO Agreement with Tarantino LLC at any time under the terms of the ISO Agreement. For the year ended December 31, 2018, the fee paid by the fund under this agreement was $393 and is included in “Miscellaneous” expense in the Statement of Operations. MFS has agreed to bear all expenses associated with office space, other administrative support, and supplies provided to the ISO.

The fund is permitted to engage in purchase and sale transactions with funds and accounts for which MFS serves as investment adviser orsub-adviser (“cross-trades”) pursuant to a policy adopted by the Board of Trustees. This policy has been designed to ensure that cross-trades conducted by the fund comply with Rule17a-7 under the Investment Company Act of 1940. During the year ended December 31, 2018, the fund engaged in sale transactions pursuant to this policy, which amounted to $94,766. The sales transactions resulted in net realized gains (losses) of $(9,250).

Effective on or about January 3, 2018, the adviser has voluntarily undertaken to reimburse the fund from its own resources on a quarterly basis for the cost of investment research embedded in the cost of the fund’s securities trades. This agreement may be rescinded at any time. For the period on or about January 3, 2018 to December 31, 2018, this reimbursement amounted to $18,882, which is included in “Other” income in the Statement of Operations.

(4)

Portfolio Securities

For the year ended December 31, 2018, purchases and sales of investments, other thanin-kind transactions, short sales, andshort-term obligations, aggregated $88,842,322 and $84,647,364, respectively.

(5)

Shares of Beneficial Interest

The 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:


	Year ended 12/31/18						Year ended 12/31/17

	Shares			Amount			Shares			Amount
Shares sold
Initial Class		93,157			$1,884,589			570,136			$9,085,607
Service Class		2,524,146			48,418,535			3,158,826			49,001,289
		2,617,303			$50,303,124			3,728,962			$58,086,896
Shares issued to shareholders in reinvestment of distributions
Initial Class		51,805			$1,094,630			30,178			$498,246
Service Class		723,567			14,507,522			242,602			3,820,974
		775,372			$15,602,152			272,780			$4,319,220
Shares reacquired
Initial Class		(701,868	)		$(14,582,305	)		(212,150	)		$(3,419,215	)
Service Class		(12,758,134	)		(234,940,678	)		(1,538,347	)		(24,076,077	)
		(13,460,002	)		$(249,522,983	)		(1,750,497	)		$(27,495,292	)
Net change
Initial Class		(556,906	)		$(11,603,086	)		388,164			$6,164,638
Service Class		(9,510,421	)		(172,014,621	)		1,863,081			28,746,186
		(10,067,327	)		$(183,617,707	)		2,251,245			$34,910,824

MFS Technology Portfolio

Notes to Financial Statements – continued

(6)

Line of Credit

The fund and certain other funds managed by MFS participate in a $1.25 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 Overnight Bank Funding rate or daily one month LIBOR plus an agreed upon spread. A commitment fee, based on the average daily, unused portion of the committed line of credit, is allocated among the participating funds. In addition, the 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, at a rate equal to the Overnight Bank Funding rate plus an agreed upon spread. For the year ended December 31, 2018, the fund’s commitment fee and interest expense were $1,421 and $0, respectively, and are included in “Miscellaneous” expense in the Statement of Operations.

(7)

Investments in Affiliated Issuers


Affiliated Issuers		Beginning Shares/Par Amount		Acquisitions Shares/Par Amount		Dispositions Shares/Par Amount			Ending Shares/Par Amount

MFS Institutional Money Market Portfolio			6,212,316		62,564,407		(67,660,006	)		1,116,717

Affiliated Issuers	Realized Gain (Loss)	Change in Unrealized Appreciation/ Depreciation		Capital Gain Distributions		Dividend Income			Ending Value

MFS Institutional Money Market Portfolio	$(69)		$—		$—		$75,175			$1,116,606

(8)

RedemptionsIn-Kind

On October 19, 2018, the fund recorded a redemptionin-kind of portfolio securities and cash that were valued at $208,690,175. The redeeming shareholder generally receives a pro rata share of the securities held by the fund. The distribution of such securities generated a realized gain of $93,775,946 for the fund, which is included in Net realized gain (loss) in the Statement of Operations. For tax purposes, no gains or losses were recognized.

MFS Technology Portfolio

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees of MFS Variable Insurance Trust II and the Shareholders of MFS Technology Portfolio:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities of MFS Technology Portfolio (the “Fund”), including the portfolio of investments, as of December 31, 2018, the related statement 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of December 31, 2018, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

DELOITTE & TOUCHE LLP

Boston, Massachusetts

February 15, 2019

We have served as the auditor of one or more of the MFS investment companies since 1924.

MFS Technology Portfolio

TRUSTEES AND OFFICERS – IDENTIFICATION AND BACKGROUND


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds overseen by the Trustee	Principal Occupations During the Past Five Years	Other Directorships During the Past Five Years (j)
INTERESTED TRUSTEES
Robert J. Manning (k) (age 55)	Trustee	February 2004	135	Massachusetts Financial Services Company, Executive Chairman (since January 2017); Director; Chairman of the Board; Chief Executive Officer (until 2015);Co-Chief Executive Officer(2015-2016)	N/A

Robin A. Stelmach (k) (age 57)	Trustee	January 2014	135	Massachusetts Financial Services Company, Vice Chair (since January 2017); Chief Operating Officer and Executive Vice President (until January 2017)	N/A

INDEPENDENT TRUSTEES
John P. Kavanaugh (age 64)	Trustee and Chair of Trustees	January 2009	135	Private investor	N/A

Steven E. Buller (age 67)	Trustee	February 2014	135	Financial Accounting Standards Advisory Council, Chairman(2014-2015); Public Company Accounting Oversight Board, Standing Advisory Group, Member (until 2014); BlackRock, Inc. (investment management), Managing Director (until 2014), BlackRock Finco UK (investment management), Director (until 2014)	N/A

John A. Caroselli (age 64)	Trustee	March 2017	135	JC Global Advisors, LLC (management consulting), President (since 2015); First Capital Corporation (commercial finance), Executive Vice President (until 2015)	N/A

Maureen R. Goldfarb (age 63)	Trustee	January 2009	135	Private investor	N/A

Michael Hegarty (age 74)	Trustee	December 2004	135	Private investor	Rouse Properties Inc., Director (until 2016); Capmark Financial Group Inc., Director (until 2015)

Peter D. Jones (age 63)	Trustee	January 2019	135	Franklin Templeton Distributors, Inc. (investment management), President (until 2015); Franklin Templeton Institutional, LLC (investment management), Chairman (until 2015)	N/A

James W. Kilman, Jr. (age 57)	Trustee	January 2019	135	KielStrand Capital LLC (family office and merchant bank), Chief Executive Officer (since 2016); Morgan Stanley & Co. (financial services), Vice Chairman of Investment Banking,Co-Head of Diversified Financials Coverage – Financial Institutions Investment Banking Group (until 2016)	alpha-En Corporation, Director (since 2016)

MFS Technology Portfolio

Trustees and Officers – continued


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds overseen by the Trustee	Principal Occupations During the Past Five Years	Other Directorships During the Past Five Years (j)
Clarence Otis, Jr. (age 62)	Trustee	March 2017	135	Darden Restaurants, Inc., Chief Executive Officer (until 2014)	VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director; Federal Reserve Bank of Atlanta, Director (until 2015)

Maryanne L. Roepke (age 62)	Trustee	May 2014	135	American Century Investments (investment management), Senior Vice President and Chief Compliance Officer (until 2014)	N/A

Laurie J. Thomsen (age 61)	Trustee	March 2005	135	Private investor	The Travelers Companies, Director; Dycom Industries, Inc., Director (since 2015)


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds for which the Person is an Officer	Principal Occupations During the Past Five Years
OFFICERS
Christopher R. Bohane (k) (age 45)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Vice President and Assistant General Counsel

Kino Clark (k) (age 50)	Assistant Treasurer	January 2012	135	Massachusetts Financial Services Company, Vice President

John W. Clark, Jr. (k) (age 51)	Assistant Treasurer	April 2017	135	Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head – Treasurer’s Office (until February 2017)

Thomas H. Connors (k) (age 59)	Assistant Secretary and Assistant Clerk	September 2012	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Ethan D. Corey (k) (age 55)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel

David L. DiLorenzo (k) (age 50)	President	July 2005	135	Massachusetts Financial Services Company, Senior Vice President

Heidi W. Hardin (k) (age 51)	Secretary and Clerk	April 2017	135	Massachusetts Financial Services Company, Executive Vice President and General Counsel (since March 2017); Harris Associates (investment management), General Counsel (from September 2015 to January 2017); Janus Capital Management LLC (investment management), Senior Vice President and General Counsel (until September 2015)

Brian E. Langenfeld (k) (age 45)	Assistant Secretary and Assistant Clerk	June 2006	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Amanda S. Mooradian (k) (age 39)	Assistant Secretary and Assistant Clerk	September 2018	135	Massachusetts Financial Services Company, Assistant Vice President and Counsel

Susan A. Pereira (k) (age 48)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Kasey L. Phillips (k) (age 48)	Assistant Treasurer	September 2012	135	Massachusetts Financial Services Company, Vice President

Matthew A. Stowe (k) (age 44)	Assistant Secretary and Assistant Clerk	October 2014	135	Massachusetts Financial Services Company, Vice President and Assistant General Counsel

MFS Technology Portfolio

Trustees and Officers – continued


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds for which the Person is an Officer	Principal Occupations During the Past Five Years
Frank L. Tarantino (age 74)	Independent Senior Officer	June 2004	135	Tarantino LLC (provider of compliance services), Principal

Richard S. Weitzel (k) (age 48)	Assistant Secretary and Assistant Clerk	October 2007	135	Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel

Martin J. Wolin (k) (age 51)	Chief Compliance Officer	July 2015	135	Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer (since July 2015); Mercer (financial service provider), Chief Risk and Compliance Officer, North America and Latin America (until June 2015)

James O. Yost (k) (age 58)	Treasurer	September 1990	135	Massachusetts Financial Services Company, Senior Vice President

(h)

(j)	Directorships or trusteeships of companies required to report to the Securities and Exchange Commission (i.e., “public companies”).

(k)

Messrs. Buller, Hegarty, Kilman and Otis and Ms. Roepke are members of the Trust’s Audit Committee.

Each of the Interested Trustees and certain Officers hold comparable officer positions with certain affiliates of MFS.

The Statement of Additional Information for a Fund includes further information about the Trustees and is available without charge upon request by calling1-800-225-2606.


Investment Adviser Massachusetts Financial Services Company 111 Huntington Avenue Boston, MA 02199-7618		Custodian State Street Bank and Trust Company 1 Lincoln Street Boston, MA 02111-2900

Distributor MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618		Independent Registered Public Accounting Firm Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116

Portfolio Manager(s) Matthew Sabel

MFS Technology Portfolio

BOARD REVIEW OF INVESTMENT ADVISORY AGREEMENT

Based on information provided by Broadridge and MFS, the Trustees reviewed the Fund’s total return investment performance as well as the Broadridge performance universe over various time periods. The Trustees placed particular emphasis on the total return performance of the Fund’s Initial Class shares in comparison to the performance of funds in its Broadridge performance universe over the three-year period ended December 31, 2017, which the Trustees believed was a long enough period to reflect differing market conditions. The total return performance of the Fund’s Initial Class shares was in the 2nd quintile relative to the other funds in the universe for this three-year period (the 1st quintile being the best performers and the 5th quintile being the worst performers). The total return performance of the Fund’s Initial Class shares was in the 2nd quintile for theone-year period and the 3rd quintile for the five-year period ended December 31, 2017 relative to the Broadridge performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.

MFS Technology Portfolio

Board Review of Investment Advisory Agreement – continued

The Trustees also considered whether the Fund may benefit from any economies of scale in the management of the Fund in the event of growth in assets of the Fund and/or growth in assets of the MFS Funds as a whole. They noted that the Fund’s advisory fee rate schedule is subject to a contractual breakpoint that reduces the Fund’s advisory fee rate on average daily net assets over $1 billion. The Trustees also noted that MFS has agreed in writing to waive a portion of the management fees of certain MFS Funds, including the Fund, if the total combined assets of certain funds within the MFS Funds’ complex increase above agreed upon thresholds (the “group fee waiver”), enabling the Fund’s shareholders to share in the benefits from any economies of scale at the complex level. The group fee waiver is reviewed and renewed annually between the Board and MFS. The Trustees concluded that the breakpoint and the group fee waiver were sufficient to allow the Fund to benefit from economies of scale as its assets and overall complex assets grow.

MFS Technology Portfolio

PROXY VOTING POLICIES AND INFORMATION

QUARTERLY PORTFOLIO DISCLOSURE

FURTHER INFORMATION

INFORMATION ABOUT FUND CONTRACTS AND LEGAL CLAIMS

FEDERAL TAX INFORMATION (unaudited)

The following information is provided pursuant to provisions of the Internal Revenue Code.

The fund designates $13,195,000 as capital gain dividends paid during the fiscal year.

For corporate shareholders, 48.96% of the ordinary income dividends paid during the fiscal year qualify for the corporate dividends received deduction.

rev. 3/16


FACTS		WHAT DOES MFS DO WITH YOUR PERSONAL INFORMATION?


Why?		Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.

What?

The types of personal information we collect and share depend on the product or service you have with us. This information can include:

• Social Security number and account balances

• Account transactions and transaction history

• Checking account information and wire transfer instructions

When you areno longer our customer, we continue to share your information as described in this notice.


How?		All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons MFS chooses to share; and whether you can limit this sharing.


Reasons we can share your personal information	Does MFS share?	Can you limit this sharing?
For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes – to offer our products and services to you	No	We don’t share
For joint marketing with other financial companies	No	We don’t share
For our affiliates’ everyday business purposes – information about your transactions and experiences	No	We don’t share
For our affiliates’ everyday business purposes – information about your creditworthiness	No	We don’t share
For nonaffiliates to market to you	No	We don’t share


Questions?		Call800-225-2606 or go tomfs.com.


Page 2


Who we are
Who is providing this notice?		MFS Funds, MFS Investment Management, MFS Institutional Advisors, Inc., and MFS Heritage Trust Company.


What we do
How does MFS protect my personal information?		To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include procedural, electronic, and physical safeguards for the protection of the personal information we collect about you.
How does MFS collect my personal information?		We collect your personal information, for example, when you • open an account or provide account information • direct us to buy securities or direct us to sell your securities • make a wire transfer We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can’t I limit all sharing?		Federal law gives you the right to limit only • sharing for affiliates’ everyday business purposes – information about your creditworthiness • affiliates from using your information to market to you • sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing.


Definitions
Affiliates		Companies related by common ownership or control. They can be financial and nonfinancial companies. • MFS does not share personal information with affiliates, except for everyday business purposes as described on page one of this notice.
Nonaffiliates		Companies not related by common ownership or control. They can be financial and nonfinancial companies. • MFS does not share with nonaffiliates so they can market to you.
Joint marketing		A formal agreement between nonaffiliated financial companies that together market financial products or services to you. • MFS doesn’t jointly market.


Other important information
If you own an MFS product or receive an MFS service in the name of a third party such as a bank or broker-dealer, their privacy policy may apply to you instead of ours.

LOGO

Annual Report

December 31, 2018

LOGO

MFS^® U.S. Government Money Market Portfolio

LOGO

MFS^® Variable Insurance Trust II

MKS-ANN

MFS® U.S. Government Money Market Portfolio

CONTENTS


Letter from the Executive Chairman			1
Portfolio composition			2
Performance summary			3
Expense table			4
Portfolio of investments			5
Statement of assets and liabilities			6
Statement of operations			7
Statements of changes in net assets			8
Financial highlights			9
Notes to financial statements			10
Report of independent registered public accounting firm			14
Trustees and officers			15
Board review of investment advisory agreement			18
Proxy voting policies and information			20
Quarterly portfolio disclosure			20
Further information			20
Information about fund contracts and legal claims			20
MFS^® privacy notice			21

The report is prepared for the general information of contract owners. 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 OR CREDIT UNION GUARANTEE• NOT A DEPOSIT• NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY OR NCUA/NCUSIF

MFS U.S. Government Money Market Portfolio

LETTER FROM THE EXECUTIVE CHAIRMAN

LOGO

Dear Contract Owners:

Respectfully,

LOGO

Robert J. Manning

Executive Chairman

MFS Investment Management

February 15, 2019

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

MFS U.S. Government Money Market Portfolio

PORTFOLIO COMPOSITION

Portfolio structure (u)

LOGO


Composition including fixed income credit quality (a)(u)
A-1+			11.2%
A-1			88.9%
Other Assets Less Liabilities			(0.1)%


Maturity breakdown (u)
0 - 7 days		29.0%
8 - 29 days		59.5%
30 - 59 days		10.5%
60 - 89 days		1.1%
Other Assets Less Liabilities	��	(0.1)%

(a)

Ratings are assigned to portfolio securities utilizing ratings from Moody’s, Fitch, and Standard & Poor’s rating agencies and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. Ratings are shown in the S&P scale. All ratings are subject to change. The fund is not rated by these agencies.

(u)	For purposes of this presentation, accrued interest, where applicable, is included.

Percentages are based on net assets as of December 31, 2018.

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

MFS U.S. Government Money Market Portfolio

PERFORMANCE SUMMARY THROUGH 12/31/18

Total returns as well as the current 7-day yield have been provided for the applicable time periods. Performance results reflect the percentage change in net asset value, including the reinvestment of any dividends and capital gains distributions. (See Notes to Performance Summary.) An investment in the portfolio is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per unit, it is possible to lose money by investing in the fund.


Share Class	Inception	1-Year Total Return	Current 7-day yield
Initial Class	7/19/85	1.26%	1.77%
Service Class	8/24/01	1.26%	1.77%

Notes to Performance Summary

Yields quoted are based on the latest seven days ended as of December 31, 2018, with dividends annualized. The yield quotations more closely reflect the current earnings of the fund than the total return quotations.

Performance results reflect any applicable expense subsidies, waivers and adjustments in effect during the periods shown. Without such subsidies and waivers the fund’s performance results would be less favorable. Please see the prospectus and financial statements for complete details. All results are historical and assume the reinvestment of any dividends and capital gain distributions.

MFS U.S. Government Money Market Portfolio

EXPENSE TABLE

Fund Expenses Borne by the Contract Holders during the Period,

July 1, 2018 through December 31, 2018

As a contract holder of the fund, you incur ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period July 1, 2018 through December 31, 2018.

Actual Expenses

Hypothetical Example for Comparison Purposes


Share Class		Annualized Expense Ratio		Beginning Account Value 7/01/18		Ending Account Value 12/31/18		Expenses Paid During Period (p) 7/01/18-12/31/18
Initial Class	Actual		0.55%		$1,000.00		$1,007.67		$2.78
Initial Class	Hypothetical (h)		0.55%		$1,000.00		$1,022.43		$2.80
Service Class	Actual		0.55%		$1,000.00		$1,007.67		$2.78
Service Class	Hypothetical (h)		0.55%		$1,000.00		$1,022.43		$2.80

(h)	5% class return per year before expenses.

(p)	“Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect theone-half year period).

MFS U.S. Government Money Market Portfolio

PORTFOLIO OF INVESTMENTS – 12/31/18

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



Issuer	Shares/Par		Value ($)
U.S. GOVERNMENT AGENCIES AND EQUIVALENTS (y) – 92.7%
Fannie Mae, 2.248%, due 1/04/2019	$	3,100,000	$	3,099,429
Fannie Mae, 2.264%, due 1/04/2019		4,100,000		4,099,240
Fannie Mae, 2.278%, due 1/09/2019		11,600,000		11,594,226
Fannie Mae, 2.285%, due 1/09/2019		100,000		99,950
Fannie Mae, 2.326%, due 1/09/2019		100,000		99,949
Fannie Mae, 2.288%, due 1/14/2019		600,000		599,512
Fannie Mae, 2.257%, due 1/15/2019		22,500,000		22,480,575
Fannie Mae, 2.314%, due 1/16/2019		8,300,000		8,292,150
Fannie Mae, 2.329%, due 1/28/2019		100,000		99,828
Fannie Mae, 2.355%, due 1/30/2019		9,100,000		9,083,066
Federal Farm Credit Bank, 2.29%, due 1/03/2019		100,000		99,988
Federal Farm Credit Bank, 2.331%, due 1/18/2019		8,000,000		7,991,349
Federal Farm Credit Bank, 2.332%, due 1/22/2019		9,500,000		9,487,310
Federal Farm Credit Bank, 2.332%, due 1/23/2019		9,900,000		9,886,145
Federal Farm Credit Bank, 2.379%, due 1/24/2019		11,800,000		11,782,359
Federal Farm Credit Bank, 2.354%, due 1/31/2019		11,600,000		11,577,670
Federal Farm Credit Bank, 2.401%, due 2/06/2019		4,300,000		4,289,852
Federal Farm Credit Bank, 2.437%, due 3/04/2019		3,250,000		3,236,623
Federal Home Loan Bank, 2.129%, due 1/02/2019		1,662,000		1,661,903
Federal Home Loan Bank, 2.309%, due 1/07/2019		2,900,000		2,898,903
Federal Home Loan Bank, 2.28%, due 1/08/2019		7,800,000		7,796,603
Federal Home Loan Bank, 2.308%, due 1/08/2019		9,500,000		9,495,807
Federal Home Loan Bank, 2.309%, due 1/08/2019		10,900,000		10,895,189
Federal Home Loan Bank, 2.313%, due 1/10/2019		3,000,000		2,998,294
Federal Home Loan Bank, 2.38%, due 1/24/2019		11,700,000		11,682,508
Federal Home Loan Bank, 2.39%, due 1/25/2019		11,000,000		10,982,767
Freddie Mac, 2.239%, due 1/08/2019		7,500,000		7,496,792
Freddie Mac, 2.281%, due 1/18/2019		11,800,000		11,787,518



Issuer	Shares/Par		Value ($)
U.S. GOVERNMENT AGENCIES AND EQUIVALENTS (y) – continued
Freddie Mac, 2.301%, due 1/18/2019	$	8,700,000	$	8,690,715
Freddie Mac, 2.302%, due 1/22/2019		2,100,000		2,097,231
Freddie Mac, 2.311%, due 1/25/2019		9,000,000		8,986,380
Freddie Mac, 2.311%, due 1/28/2019		4,300,000		4,292,679
Freddie Mac, 2.311%, due 1/29/2019		10,800,000		10,780,932
Freddie Mac, 2.362%, due 2/20/2019		100,000		99,678
Freddie Mac, 2.383%, due 2/20/2019		4,600,000		4,585,050
U.S. Treasury Bill, 2.341%, due 1/02/2019		7,700,000		7,699,507
U.S. Treasury Bill, 1.785%, due 1/03/2019		7,000,000		6,999,327
U.S. Treasury Bill, 2.324%, due 1/24/2019		7,800,000		7,788,613
U.S. Treasury Bill, 2.396%, due 2/05/2019		100,000		99,771
U.S. Treasury Bill, 2.349%, due 2/07/2019		2,000,000		1,995,260
U.S. Treasury Bill, 2.386%, due 2/12/2019		100,000		99,726
U.S. Treasury Bill, 2.374%, due 2/21/2019		7,700,000		7,674,584

Total U.S. Government Agencies and Equivalents, at Amortized Cost and Value			$	267,484,958


REPURCHASE AGREEMENTS – 7.4%
JPMorgan Chase & Co. Repurchase Agreement, 2.84%, dated 12/31/2018, due 1/02/2019, total to be received $18,440,909 (secured by U.S. Treasury and Federal Agency obligations valued at $18,809,749 in a jointly traded account)	$	18,438,000	$	18,438,000
Merrill Lynch, Pierce, Fenner & Smith, Inc. Repurchase Agreement, 2.94%, dated 12/31/2018, due 1/02/2019, total to be received $2,842,464 (secured by U.S. Treasury and Federal Agency obligations valued at $2,900,838 in a jointly traded account)		2,842,000		2,842,000

Total Repurchase Agreements, at Cost and Value			$	21,280,000

OTHER ASSETS, LESS LIABILITIES – (0.1)%				(305,590	)

NET ASSETS – 100.0%			$	288,459,368

(y)

The rate shown represents an annualized yield at time of purchase.

See Notes to Financial Statements

MFS U.S. Government Money Market Portfolio

FINANCIAL STATEMENTS ^| STATEMENT OF ASSETS AND LIABILITIES

This statement represents your fund’s balance sheet, which details the assets and liabilities comprising the total value of the fund.


At 12/31/18
Assets
Investments in unaffiliated issuers, at cost and value			$288,764,958
Cash			933
Receivables for
Fund shares sold			326,472
Interest			1,687
Other assets			2,259
Total assets			$289,096,309
Liabilities
Payables for
Fund shares reacquired			$561,094
Payable to affiliates
Investment adviser			15,949
Shareholder servicing costs			57
Payable for independent Trustees’ compensation			18
Accrued expenses and other liabilities			59,823
Total liabilities			$636,941
Net assets			$288,459,368
Net assets consist of
Paid-in capital			$288,459,368
Net assets			$288,459,368
Shares of beneficial interest outstanding			288,679,414


	Net assets		Shares outstanding		Net asset value per share
Initial Class		$160,303,796		160,425,488		$1.00
Service Class		128,155,572		128,253,926		1.00

See Notes to Financial Statements

MFS U.S. Government Money Market Portfolio

FINANCIAL STATEMENTS ^| STATEMENT OF OPERATIONS

This statement describes how much your fund earned in investment income and accrued in expenses. It also describes any gains and/or losses generated by fund operations.


Year ended 12/31/18
Net investment income (loss)
Income
Interest	$5,276,559
Other	64
Total investment income	$5,276,623
Expenses
Management fee	$1,468,565
Distribution and/or service fees	346,219
Shareholder servicing costs	6,250
Administrative services fee	51,796
Independent Trustees’ compensation	7,212
Custodian fee	15,509
Shareholder communications	23,657
Audit and tax fees	36,077
Legal fees	2,453
Miscellaneous	33,528
Total expenses	$1,991,266
Reduction of expenses by investment adviser and distributor	(374,193	)
Net expenses	$1,617,073
Net investment income (loss)	$3,659,550
Change in net assets from operations	$3,659,550

See Notes to Financial Statements

MFS U.S. Government Money Market Portfolio

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
	12/31/18			12/31/17
Change in net assets

From operations
Net investment income (loss)		$3,659,550			$938,474
Net realized gain (loss)		—			13
Change in net assets from operations		$3,659,550			$938,487
Total distributions to shareholders (a)		$(3,659,550	)		$(938,722	)
Change in net assets from fund share transactions		$(26,075,131	)		$(47,858,372	)
Total change in net assets		$(26,075,131	)		$(47,858,607	)

Net assets
At beginning of period		314,534,499			362,393,106
At end of period		$288,459,368			$314,534,499

(a)	Distributions from net investment income and from net realized gain are no longer required to be separately disclosed. See Note 2. For the year ended December 31, 2017, distributions from net investment income were $938,722.

See Notes to Financial Statements

MFS U.S. Government Money Market Portfolio

FINANCIAL STATEMENTS ^| FINANCIAL HIGHLIGHTS


Initial Class	Year ended
	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Net asset value, beginning of period		$1.00			$1.00			$1.00			$1.00			$1.00
Income (loss) from investment operations
Net investment income (loss) (d)		$0.01			$0.00	(w)		$0.00	(c)(w)		$0.00			$0.00
Net realized and unrealized gain (loss)		—			0.00	(w)		0.00	(w)		0.00	(w)		0.00	(w)
Total from investment operations		$0.01			$0.00	(w)		$0.00	(w)		$0.00	(w)		$0.00	(w)
Less distributions declared to shareholders
From net investment income		$(0.01	)		$(0.00	)(w)		$(0.00	)(w)		$—			$—
Net asset value, end of period		$1.00			$1.00			$1.00			$1.00			$1.00
Total return (%) (k)(r)		1.26			0.30			0.01	(c)		0.00			0.00
Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)		0.56			0.56			0.53	(c)		0.57			0.55
Expenses after expense reductions (f)		0.55			0.54			0.30	(c)		0.13			0.10
Net investment income (loss)		1.25			0.29			0.01	(c)		0.00			0.00
Net assets at end of period (000 omitted)		$160,304			$168,107			$179,458			$190,761			$214,019

Service Class	Year ended
	12/31/18			12/31/17			12/31/16			12/31/15			12/31/14
Net asset value, beginning of period		$1.00			$1.00			$1.00			$1.00			$1.00
Income (loss) from investment operations
Net investment income (loss) (d)		$0.01			$0.00	(w)		$0.00	(c)(w)		$0.00			$0.00
Net realized and unrealized gain (loss)		—			0.00	(w)		0.00	(w)		0.00	(w)		0.00	(w)
Total from investment operations		$0.01			$0.00	(w)		$0.00	(w)		$0.00	(w)		$0.00	(w)
Less distributions declared to shareholders
From net investment income		$(0.01	)		$(0.00	)(w)		$(0.00	)(w)		$—			$—
Net asset value, end of period		$1.00			$1.00			$1.00			$1.00			$1.00
Total return (%) (k)(r)		1.26			0.29			0.01	(c)		0.00			0.00
Ratios (%) (to average net assets) and Supplemental data:
Expenses before expense reductions (f)		0.81			0.81			0.79	(c)		0.82			0.80
Expenses after expense reductions (f)		0.55			0.55			0.30	(c)		0.13			0.10
Net investment income (loss)		1.24			0.27			0.01	(c)		0.00			0.00
Net assets at end of period (000 omitted)		$128,156			$146,428			$182,935			$182,097			$205,550

(c)

Amount reflects aone-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher.

(d)

Per share data is based on average shares outstanding.

(f)

Ratios do not reflect reductions from fees paid indirectly, if applicable.

(k)

The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown.

(r)

Certain expenses have been reduced without which performance would have been lower.

(w)

Per share amount was less than $0.01.

See Notes to Financial Statements

MFS U.S. Government Money Market Portfolio

NOTES TO FINANCIAL STATEMENTS

(1)

Business and Organization

MFS U.S. Government Money Market Portfolio (the fund) is a diversified series of MFS Variable Insurance Trust II (the trust). The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as anopen-end management investment company. The shareholders of each series of the trust are separate accounts of insurance companies, which offer variable annuity and/or life insurance products, and qualified retirement and pension plans.

(2)

Significant Accounting Policies

In August 2018, the FASB issued Accounting Standards Update2018-13, Fair Value Measurement (Topic 820) – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (“ASU2018-13”) which introduces new fair value disclosure requirements as well as eliminates and modifies certain existing fair value disclosure requirements.ASU 2018-13 would be effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years; however, management has elected to early adopt ASU2018-13 effective with the current reporting period. The impact of the fund’s adoption was limited to changes in the fund’s financial statement disclosures regarding fair value, primarily those disclosures related to transfers between levels of the fair value hierarchy.

Balance Sheet Offsetting – The fund’s accounting policy with respect to balance sheet offsetting is that, absent an event of default by the counterparty or a termination of the agreement, the International Swaps and Derivatives Association (ISDA) Master Agreement, or similar agreement, does not result in an offset of reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities across transactions between the fund and the applicable counterparty. The fund’s right to setoff may be restricted or prohibited by the bankruptcy or insolvency laws of the particular jurisdiction to which a specific master netting agreement counterparty is subject. Balance sheet offsetting disclosures, to the extent applicable to the fund, have been included in the fund’s Significant Accounting Policies note under the captions for each of the fund’sin-scope financial instruments and transactions.

Investment Valuations – Pursuant to procedures approved by the Board of Trustees, investments held by the fund are generally valued at amortized cost, which approximates market value. Amortized cost involves valuing an instrument at its cost as adjusted for amortization of premium or accretion of discount rather than its current market value. The amortized cost value of an instrument can be different from the market value of an instrument.


Financial Instruments	Level 1		Level 2		Level 3		Total
Short-Term Securities		$—		$288,764,958		$—		$288,764,958

For further information regarding security characteristics, see the Portfolio of Investments.

MFS U.S. Government Money Market Portfolio

Notes to Financial Statements – continued

Repurchase Agreements – The fund enters into repurchase agreements under the terms of Master Repurchase Agreements with approved counterparties. Each repurchase agreement is recorded at cost. The fund requires that the securities collateral in a repurchase transaction be transferred to a custodian. The 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 the fund under each such repurchase agreement. Upon an event of default under a Master Repurchase Agreement, thenon-defaulting party may close out all transactions traded under such agreement and net amounts owed under each transaction to one net amount payable by one party to the other. Absent an event of default, the Master Repurchase Agreement does not result in an offset of reported amounts of assets and liabilities in the Statement of Assets and Liabilities across transactions between the fund and the applicable counterparty. The fund and other funds managed by MFS may utilize a joint trading account for the purpose of entering into one or more repurchase agreements. At December 31, 2018, the fund had investments in repurchase agreements with a gross value of $21,280,000 included in investments in unaffiliated issuers in the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at period end.

Indemnifications – Under the 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 the fund. Additionally, in the normal course of business, the fund enters into agreements with service providers that may contain indemnification clauses. The 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.

During the year ended December 31, 2018, there were no significant adjustments due to differences between book and tax accounting.

The tax character of distributions declared to shareholders for the last two fiscal years is as follows:


	Year ended 12/31/18		Year ended 12/31/17
Ordinary income (including any short-term capital gains)		$3,659,550		$938,722

The federal tax cost and the tax basis components of distributable earnings were as follows:


As of 12/31/18
Cost of investments			$288,764,958

Multiple Classes of Shares of Beneficial Interest – The fund offers multiple classes of shares, which differ in their respective distribution and/or service fees. The fund’s income and common expenses are allocated to shareholders based on the value of settled shares outstanding of each class. The fund’s realized and unrealized gain (loss) are allocated to shareholders based on the daily net

MFS U.S. Government Money Market Portfolio

Notes to Financial Statements – continued

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. The fund’s distributions declared to shareholders as reported in the Statements of Changes in Net Assets are presented by class as follows:


	From net investment income

	Year ended 12/31/18		Year ended 12/31/17
Initial Class		$1,937,963		$495,709
Service Class		1,721,587		443,013
Total		$3,659,550		$938,722

(3)

Transactions with Affiliates


Up to $500 million			0.50%
In excess of $500 million			0.45%

MFS has agreed in writing to reduce its management fee by a specified amount if certain MFS mutual fund assets exceed thresholds agreed to by MFS and the fund’s Board of Trustees. For the year ended December 31, 2018, this management fee reduction amounted to $27,974, which is included in the reduction of total expenses in the Statement of Operations. The management fee incurred for the year ended December 31, 2018 was equivalent to an annual effective rate of 0.49% of the fund’s average daily net assets.

The investment adviser has agreed in writing to pay a portion of the fund’s total annual operating expenses, excluding interest, taxes, extraordinary expenses, brokerage and transaction costs, and investment-related expenses, such that total annual operating expenses do not exceed 0.57% of average daily net assets for each of the Initial Class and Service Class shares. This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until April 30, 2020. For the year ended December 31, 2018, the fund’s actual operating expenses did not exceed the limits described above and therefore, the investment adviser did not pay any portion of the fund’s expenses related to these agreements.

The fund’s distribution plan provides that the fund will pay MFD distribution and/or service fees equal to 0.25% per annum of its average daily net assets attributable to Service Class shares as partial consideration for services performed and expenses incurred by MFD and financial intermediaries (including participating insurance companies that invest in the fund to fund variable annuity and variable life insurance contracts, sponsors of qualified retirement and pension plans that invest in the fund, and affiliates of these participating insurance companies and plan sponsors) in connection with the sale and distribution of the Service Class shares. MFD may subsequently pay all, or a portion, of the distribution and/or service fees to financial intermediaries. MFD has agreed in writing to waive the entire 0.25% distribution and/or service fee. This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until April 30, 2020. For the year ended December 31, 2018, this waiver amounted to $346,219, which is included in the reduction of total expenses in the Statement of Operations. The distribution and/or service fees incurred for the year ended December 31, 2018 were equivalent to an annual effective rate of 0.00% of the average daily net assets attributable to Service Class shares.

Shareholder Servicing Agent– MFS Service Center, Inc. (MFSC), a wholly-owned subsidiary of MFS, receives a fee from the fund for its services as shareholder servicing agent. For the year ended December 31, 2018, the fee was $5,852, which equated to 0.0020% annually of the fund’s average daily net assets. MFSC also receives payment from the fund forout-of-pocket expenses paid by MFSC on behalf of the fund. For the year ended December 31, 2018, these costs amounted to $398.

MFS U.S. Government Money Market Portfolio

Notes to Financial Statements – continued

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– This fund and certain other funds managed by MFS (the funds) have entered into a service agreement (the ISO Agreement) which provides for payment of fees solely by the funds to Tarantino LLC in return for the provision of services of an Independent Senior Officer (ISO) for the funds. Frank L. Tarantino serves as the ISO and is an officer of the funds and the sole member of Tarantino LLC. The funds can terminate the ISO Agreement with Tarantino LLC at any time under the terms of the ISO Agreement. For the year ended December 31, 2018, the fee paid by the fund under this agreement was $498 and is included in “Miscellaneous” expense in the Statement of Operations. MFS has agreed to bear all expenses associated with office space, other administrative support, and supplies provided to the ISO.

(4)

Shares of Beneficial Interest

The fund’s Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest. The number of shares sold, reinvested and reacquired corresponds to the net proceeds from the sale of shares, reinvestment of distributions and cost of shares reacquired, respectively, since shares are sold and reacquired at $1.00 per share. Transactions in fund shares were as follows:


	Year ended 12/31/18			Year ended 12/31/17
Shares sold
Initial Class		40,333,024			35,332,001
Service Class		35,513,369			50,562,527
		75,846,393			85,894,528

Shares issued to shareholders in reinvestment of distributions
Initial Class		1,937,963			495,709
Service Class		1,721,587			443,013
		3,659,550			938,722

Shares reacquired
Initial Class		(50,062,009	)		(47,177,273	)
Service Class		(55,519,065	)		(87,514,349	)
		(105,581,074	)		(134,691,622	)

Net change
Initial Class		(7,791,022	)		(11,349,563	)
Service Class		(18,284,109	)		(36,508,809	)
		(26,075,131	)		(47,858,372	)

(5)

Line of Credit

The fund and certain other funds managed by MFS participate in a $1.25 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 Overnight Bank Funding rate or daily one month LIBOR plus an agreed upon spread. A commitment fee, based on the average daily, unused portion of the committed line of credit, is allocated among the participating funds. In addition, the 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, at a rate equal to the Overnight Bank Funding rate plus an agreed upon spread. For the year ended December 31, 2018, the fund’s commitment fee and interest expense were $1,697 and $0, respectively, and are included in “Miscellaneous” expense in the Statement of Operations.

MFS U.S. Government Money Market Portfolio

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees of MFS Variable Insurance Trust II and the Shareholders of

MFS U.S. Government Money Market Portfolio:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities of MFS U.S. Government Money Market Portfolio (the “Fund”), including the portfolio of investments, as of December 31, 2018, the related statement 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of December 31, 2018, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

DELOITTE & TOUCHE LLP

Boston, Massachusetts

February 15, 2019

We have served as the auditor of one or more of the MFS investment companies since 1924.

MFS U.S. Government Money Market Portfolio

TRUSTEES AND OFFICERS – IDENTIFICATION AND BACKGROUND


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds overseen by the Trustee	Principal Occupations During the Past Five Years	Other Directorships During the Past Five Years (j)
INTERESTED TRUSTEES
Robert J. Manning (k) (age 55)	Trustee	February 2004	135	Massachusetts Financial Services Company, Executive Chairman (since January 2017); Director; Chairman of the Board; Chief Executive Officer (until 2015);Co-Chief Executive Officer(2015-2016)	N/A

Robin A. Stelmach (k) (age 57)	Trustee	January 2014	135	Massachusetts Financial Services Company, Vice Chair (since January 2017); Chief Operating Officer and Executive Vice President (until January 2017)	N/A

INDEPENDENT TRUSTEES
John P. Kavanaugh (age 64)	Trustee and Chair of Trustees	January 2009	135	Private investor	N/A

Steven E. Buller (age 67)	Trustee	February 2014	135	Financial Accounting Standards Advisory Council, Chairman(2014-2015); Public Company Accounting Oversight Board, Standing Advisory Group, Member (until 2014); BlackRock, Inc. (investment management), Managing Director (until 2014), BlackRock Finco UK (investment management), Director (until 2014)	N/A

John A. Caroselli (age 64)	Trustee	March 2017	135	JC Global Advisors, LLC (management consulting), President (since 2015); First Capital Corporation (commercial finance), Executive Vice President (until 2015)	N/A

Maureen R. Goldfarb (age 63)	Trustee	January 2009	135	Private investor	N/A

Michael Hegarty (age 74)	Trustee	December 2004	135	Private investor	Rouse Properties Inc., Director (until 2016); Capmark Financial Group Inc., Director (until 2015)

Peter D. Jones (age 63)	Trustee	January 2019	135	Franklin Templeton Distributors, Inc. (investment management), President (until 2015); Franklin Templeton Institutional, LLC (investment management), Chairman (until 2015)	N/A

James W. Kilman, Jr. (age 57)	Trustee	January 2019	135	KielStrand Capital LLC (family office and merchant bank), Chief Executive Officer (since 2016); Morgan Stanley & Co. (financial services), Vice Chairman of Investment Banking,Co-Head of Diversified Financials Coverage – Financial Institutions Investment Banking Group (until 2016)	alpha-En Corporation, Director (since 2016)

MFS U.S. Government Money Market Portfolio

Trustees and Officers – continued


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds overseen by the Trustee	Principal Occupations During the Past Five Years	Other Directorships During the Past Five Years (j)
Clarence Otis, Jr. (age 62)	Trustee	March 2017	135	Darden Restaurants, Inc., Chief Executive Officer (until 2014)	VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director; Federal Reserve Bank of Atlanta, Director (until 2015)

Maryanne L. Roepke (age 62)	Trustee	May 2014	135	American Century Investments (investment management), Senior Vice President and Chief Compliance Officer (until 2014)	N/A

Laurie J. Thomsen (age 61)	Trustee	March 2005	135	Private investor	The Travelers Companies, Director; Dycom Industries, Inc., Director (since 2015)


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds for which the Person is an Officer	Principal Occupations During the Past Five Years
OFFICERS
Christopher R. Bohane (k) (age 45)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Vice President and Assistant General Counsel

Kino Clark (k) (age 50)	Assistant Treasurer	January 2012	135	Massachusetts Financial Services Company, Vice President

John W. Clark, Jr. (k) (age 51)	Assistant Treasurer	April 2017	135	Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head – Treasurer’s Office (until February 2017)

Thomas H. Connors (k) (age 59)	Assistant Secretary and Assistant Clerk	September 2012	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Ethan D. Corey (k) (age 55)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel

David L. DiLorenzo (k) (age 50)	President	July 2005	135	Massachusetts Financial Services Company, Senior Vice President

Heidi W. Hardin (k) (age 51)	Secretary and Clerk	April 2017	135	Massachusetts Financial Services Company, Executive Vice President and General Counsel (since March 2017); Harris Associates (investment management), General Counsel (from September 2015 to January 2017); Janus Capital Management LLC (investment management), Senior Vice President and General Counsel (until September 2015)

Brian E. Langenfeld (k) (age 45)	Assistant Secretary and Assistant Clerk	June 2006	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Amanda S. Mooradian (k) (age 39)	Assistant Secretary and Assistant Clerk	September 2018	135	Massachusetts Financial Services Company, Assistant Vice President and Counsel

Susan A. Pereira (k) (age 48)	Assistant Secretary and Assistant Clerk	July 2005	135	Massachusetts Financial Services Company, Vice President and Senior Counsel

Kasey L. Phillips (k) (age 48)	Assistant Treasurer	September 2012	135	Massachusetts Financial Services Company, Vice President

Matthew A. Stowe (k) (age 44)	Assistant Secretary and Assistant Clerk	October 2014	135	Massachusetts Financial Services Company, Vice President and Assistant General Counsel

MFS U.S. Government Money Market Portfolio

Trustees and Officers – continued


Name, Age	Position(s) Held with Fund	Trustee/Officer Since (h)	Number of MFS Funds for which the Person is an Officer	Principal Occupations During the Past Five Years
Frank L. Tarantino (age 74)	Independent Senior Officer	June 2004	135	Tarantino LLC (provider of compliance services), Principal

Richard S. Weitzel (k) (age 48)	Assistant Secretary and Assistant Clerk	October 2007	135	Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel

Martin J. Wolin (k) (age 51)	Chief Compliance Officer	July 2015	135	Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer (since July 2015); Mercer (financial service provider), Chief Risk and Compliance Officer, North America and Latin America (until June 2015)

James O. Yost (k) (age 58)	Treasurer	September 1990	135	Massachusetts Financial Services Company, Senior Vice President

(h)

(j)	Directorships or trusteeships of companies required to report to the Securities and Exchange Commission (i.e., “public companies”).

(k)

Messrs. Buller, Hegarty, Kilman and Otis and Ms. Roepke are members of the Trust’s Audit Committee.

Each of the Interested Trustees and certain Officers hold comparable officer positions with certain affiliates of MFS.

The Statement of Additional Information for a Fund includes further information about the Trustees and is available without charge upon request by calling1-800-225-2606.


Investment Adviser Massachusetts Financial Services Company 111 Huntington Avenue Boston, MA 02199-7618		Custodian State Street Bank and Trust Company 1 Lincoln Street Boston, MA 02111-2900

Distributor MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618		Independent Registered Public Accounting Firm Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116

Portfolio Manager(s) Ed O’Dette

MFS U.S. Government Money Market Portfolio

BOARD REVIEW OF INVESTMENT ADVISORY AGREEMENT

Based on information provided by Broadridge and MFS, the Trustees reviewed the Fund’s total return investment performance as well as the Broadridge performance universe over various time periods. The Trustees placed particular emphasis on the total return performance of the Fund’s Initial Class shares in comparison to the performance of funds in its Broadridge performance universe over the three-year period ended December 31, 2017, which the Trustees believed was a long enough period to reflect differing market conditions. The total return performance of the Fund’s Initial Class shares was in the 4th quintile relative to the other funds in the universe for this three-year period (the 1st quintile being the best performers and the 5th quintile being the worst performers). The total return performance of the Fund’s Initial Class shares was in the 4th quintile for each of theone- and five-year periods ended December 31, 2017 relative to the Broadridge performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.

In the course of their deliberations, the Trustees took into account information provided by MFS in connection with the contract review meetings, as well as during investment review meetings conducted with portfolio management personnel during the course of the year regarding the Fund’s performance. In addition, the Trustees noted the market conditions affecting all money market funds, in particular the low interest rate environment during portions of theone-, three- and five-year periods, and MFS’ voluntary

MFS U.S. Government Money Market Portfolio

Board Review of Investment Advisory Agreement – continued

waiver of all or a portion of its fees to ensure that the Fund avoided a negative yield during those periods. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the investment advisory agreement, that they were satisfied with MFS’ responses and efforts relating to investment performance.

The Trustees also considered whether the Fund may benefit from any economies of scale in the management of the Fund in the event of growth in assets of the Fund and/or growth in assets of the MFS Funds as a whole. They noted that the Fund’s advisory fee rate schedule is subject to a contractual breakpoint that reduces the Fund’s advisory fee rate on average daily net assets over $500 million. The Trustees also noted that MFS has agreed in writing to waive a portion of the management fees of certain MFS Funds, including the Fund, if the total combined assets of certain funds within the MFS Funds’ complex increase above agreed upon thresholds (the “group fee waiver”), enabling the Fund’s shareholders to share in the benefits from any economies of scale at the complex level. The group fee waiver is reviewed and renewed annually between the Board and MFS. The Trustees concluded that the breakpoint and the group fee waiver were sufficient to allow the Fund to benefit from economies of scale as its assets and overall complex assets grow.

MFS U.S. Government Money Market Portfolio

PROXY VOTING POLICIES AND INFORMATION

QUARTERLY PORTFOLIO DISCLOSURE

FURTHER INFORMATION

INFORMATION ABOUT FUND CONTRACTS AND LEGAL CLAIMS

rev. 3/16



FACTS		WHAT DOES MFS DO WITH YOUR PERSONAL INFORMATION?


Why?		Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.

What?

The types of personal information we collect and share depend on the product or service you have with us. This information can include:

• Social Security number and account balances

• Account transactions and transaction history

• Checking account information and wire transfer instructions

When you areno longer our customer, we continue to share your information as described in this notice.


How?		All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons MFS chooses to share; and whether you can limit this sharing.


Reasons we can share your personal information	Does MFS share?	Can you limit this sharing?
For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus	Yes	No
For our marketing purposes – to offer our products and services to you	No	We don’t share
For joint marketing with other financial companies	No	We don’t share
For our affiliates’ everyday business purposes – information about your transactions and experiences	No	We don’t share
For our affiliates’ everyday business purposes – information about your creditworthiness	No	We don’t share
For nonaffiliates to market to you	No	We don’t share



Questions?		Call800-225-2606 or go tomfs.com.


Page 2


Who we are
Who is providing this notice?		MFS Funds, MFS Investment Management, MFS Institutional Advisors, Inc., and MFS Heritage Trust Company.


What we do
How does MFS protect my personal information?		To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include procedural, electronic, and physical safeguards for the protection of the personal information we collect about you.
How does MFS collect my personal information?		We collect your personal information, for example, when you • open an account or provide account information • direct us to buy securities or direct us to sell your securities • make a wire transfer We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can’t I limit all sharing?		Federal law gives you the right to limit only • sharing for affiliates’ everyday business purposes – information about your creditworthiness • affiliates from using your information to market to you • sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing.


Definitions
Affiliates		Companies related by common ownership or control. They can be financial and nonfinancial companies. • MFS does not share personal information with affiliates, except for everyday business purposes as described on page one of this notice.
Nonaffiliates		Companies not related by common ownership or control. They can be financial and nonfinancial companies. • MFS does not share with nonaffiliates so they can market to you.
Joint marketing		A formal agreement between nonaffiliated financial companies that together market financial products or services to you. • MFS doesn’t jointly market.


Other important information
If you own an MFS product or receive an MFS service in the name of a third party such as a bank or broker-dealer, their privacy policy may apply to you instead of ours.

LOGO

ITEM 2.

CODE OF ETHICS.

The Registrant has adopted a Code of Ethics (the “Code”) pursuant to Section 406 of the Sarbanes-Oxley Act and as defined in FormN-CSR that applies to the Registrant’s principal executive officer and principal financial and accounting officer. During the period covered by this report, the Registrant has not amended any provision in the Code that relates to an element of the Code’s definition enumerated in paragraph (b) of Item 2 of this FormN-CSR. During the period covered by this report, the Registrant did not grant a waiver, including an implicit waiver, from any provision of the Code.

A copy of the Code is filed as an exhibit to this FormN-CSR.

ITEM 3.

AUDIT COMMITTEE FINANCIAL EXPERT.

Messrs. Steven E. Buller, Clarence Otis, Jr., Michael Hegarty, and James W. Kilman, Jr., and Ms. Maryanne L. Roepke, 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 FormN-CSR. In addition, Messrs. Buller, Otis, Hegarty, and Kilman and Ms. Roepke 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 FormN-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 Deloitte & Touche LLP (“Deloitte”) to serve as independent accountants to the Registrant (hereinafter the “Registrant” or the “Fund”). The tables below set forth the audit fees billed to the Fund as well as fees fornon-audit services provided to the Fund and/or to the Fund’s 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 Fund (“MFS Related Entities”).

For the fiscal years ended December 31, 2018 and 2018, audit fees billed to the Fund by Deloitte were as follows:


	Audit Fees
	2018		2017
Fees billed by Deloitte:
MFS Blended Research Core Equity Portfolio		44,678		43,682
MFS Core Equity Portfolio		46,788		45,746
MFS Corporate Bond Portfolio		65,324		63,883
MFS Emerging Markets Equity Portfolio		47,086		46,038
MFS Global Governments Portfolio		63,002		61,611
MFS Global Growth Portfolio		57,514		56,241
MFS Global Research Portfolio		45,585		44,569
MFS Global Tactical Allocation Portfolio		63,039		61,648
MFS Government Securities Portfolio		53,538		52,351
MFS High Yield Portfolio		69,544		68,013
MFS International Growth Portfolio		47,086		46,038
MFS International Value Portfolio		47,991		46,923
MFS Massachusetts Investors Growth Stock Portfolio		46,684		45,645
MFS Research International Portfolio		44,678		43,682
MFS Strategic Income Portfolio		69,272		67,746
MFS Technology Portfolio		44,781		43,783
MFS U.S. Government Money Market Portfolio		27,595		26,967

Total		884,185		864,566

For the fiscal years ended December 31, 2018 and 2017, fees billed by Deloitte for audit-related, tax and other services provided to each Fund 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
	2018		2017		2018		2017		2018		2017
Fees billed by Deloitte:
To MFS Blended Research Core Equity Portfolio		2,400		2,400		4,989		4,882		0		0
To MFS Core Equity Portfolio		2,400		2,400		4,989		4,882		0		0
To MFS Corporate Bond Portfolio		2,400		2,400		4,989		4,882		0		0
To MFS Emerging Markets Equity Portfolio		2,400		2,400		4,989		4,882		0		0
To MFS Global Governments Portfolio		2,400		2,400		4,989		4,882		0		0
To MFS Global Growth Portfolio		2,400		2,400		4,989		4,882		0		0
To MFS Global Research Portfolio		2,400		2,400		4,989		4,882		0		0
To MFS Global Tactical Allocation Portfolio		2,400		2,400		4,989		4,882		0		0
To MFS Government Securities Portfolio		2,400		2,400		4,989		4,882		0		0
To MFS High Yield Portfolio		2,400		2,400		4,989		4,882		0		0
To MFS International Growth Portfolio		2,400		2,400		4,989		4,882		0		0
To MFS International Value Portfolio		2,400		2,400		4,989		4,882		0		0
To MFS Massachusetts Investors Growth Stock Portfolio		2,400		2,400		4,989		4,882		0		0
To MFS Research International Portfolio		2,400		2,400		4,989		4,882		0		0
To MFS Strategic Income Portfolio		2,400		2,400		4,989		4,882		0		0
To MFS Technology Portfolio		2,400		2,400		4,989		4,882		0		0
To MFS U.S. Government Money Market Portfolio		2,400		2,400		4,989		4,882		0		0
Total fees billed by Deloitte To above Funds:		40,800		40,800		84,813		82,994		0		0


	Audit-Related Fees¹				Tax Fees²				All Other Fees³
	2018		2017		2018		2017		2018		2017
Fees billed by Deloitte:
To MFS and MFS Related Entities of MFS Blended Research Core Equity Portfolio*		0		0		0		0		5,390		5,390
To MFS and MFS Related Entities of MFS Core Equity Portfolio*		0		0		0		0		5,390		5,390
To MFS and MFS Related Entities of MFS Corporate Bond Portfolio*		0		0		0		0		5,390		5,390
To MFS and MFS Related Entities of MFS Emerging Markets Equity Portfolio*		0		0		0		0		5,390		5,390
To MFS and MFS Related Entities of MFS Global Governments Portfolio*		0		0		0		0		5,390		5,390
To MFS and MFS Related Entities of MFS Global Growth Portfolio*		0		0		0		0		5,390		5,390
To MFS and MFS Related Entities of MFS Global Research Portfolio*		0		0		0		0		5,390		5,390
To MFS and MFS Related Entities of MFS Global Tactical Allocation Portfolio*		0		0		0		0		5,390		5,390
To MFS and MFS Related Entities of MFS Government Securities Portfolio*		0		0		0		0		5,390		5,390
To MFS and MFS Related Entities of MFS High Yield Portfolio*		0		0		0		0		5,390		5,390
To MFS and MFS Related Entities of MFS International Growth Portfolio*		0		0		0		0		5,390		5,390
To MFS and MFS Related Entities of MFS International Value Portfolio*		0		0		0		0		5,390		5,390
To MFS and MFS Related Entities of MFS Massachusetts Investors Growth Stock Portfolio*		0		0		0		0		5,390		5,390
To MFS and MFS Related Entities of MFS Research International Portfolio*		0		0		0		0		5,390		5,390
To MFS and MFS Related Entities of MFS Strategic Income Portfolio*		0		0		0		0		5,390		5,390
To MFS and MFS Related Entities of MFS Technology Portfolio*		0		0		0		0		5,390		5,390
To MFS and MFS Related Entities of MFS U.S. Government Money Market Portfolio *		0		0		0		0		5,390		5,390


	Aggregate fees for non-audit services:
	2018		2017
Fees billed by Deloitte:
To MFS Blended Research Core Equity Portfolio, MFS and MFS Related Entities^#		12,779		811,908
To MFS Core Equity Portfolio, MFS and MFS Related Entities^#		12,779		811,908
To MFS Corporate Bond Portfolio, MFS and MFS Related Entities^#		12,779		811,908
To MFS Emerging Markets Equity Portfolio, MFS and MFS Related Entities^#		12,779		811,908
To MFS Global Governments Portfolio, MFS and MFS Related Entities^#		12,779		811,908
To MFS Global Growth Portfolio MFS and MFS Related Entities^#		12,779		811,908
To MFS Global Research Portfolio, MFS and MFS Related Entities^#		12,779		811,908
To MFS Global Tactical Allocation Portfolio, MFS and MFS Related Entities^#		12,779		811,908
To MFS Government Securities Portfolio, MFS and MFS Related Entities^#		12,779		811,908
To MFS High Yield Portfolio, MFS and MFS Related Entities^#		12,779		811,908
To MFS International Growth Portfolio, MFS and MFS Related Entities^#		12,779		811,908
To MFS International Value Portfolio, MFS and MFS Related Entities^#		12,779		811,908
To MFS Massachusetts Investors Growth Stock Portfolio, MFS and MFS Related Entities^#		12,779		811,908
To MFS Research International Portfolio, MFS and MFS Related Entities^#		12,779		811,908
To MFS Strategic Income Portfolio, MFS and MFS Related Entities^#		12,779		811,908
To MFS Technology Portfolio, MFS and MFS Related Entities^#		12,779		811,908
To MFS U.S. Government Money Market Portfolio, MFS and MFS Related Entities^#		12,779		811,908

^*	This amount reflects the fees billed to MFS and MFS Related Entities fornon-audit services relating directly to the operations and financial reporting of the Fund (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 fornon-audit services rendered to the Fund and fornon-audit services rendered to MFS and the MFS Related Entities.

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 Deloitte other than those reported under “Audit Fees,” “Audit-Related Fees” and “Tax Fees”.

Item 4(e)(1):

Set forth below are the policies and procedures established by the Audit Committee of the Board of Trustees relating to thepre-approval of audit andnon-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 permissiblenon-audit services rendered to the Fund and all permissiblenon-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 anengagement-by-engagement basis. In the eventpre-approval of such services is necessary between regular meetings of the Audit Committee and it is not practical to wait to seekpre-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 notpre-approve any individual engagement for such services exceeding $50,000 or multiple engagements for such services in the aggregate exceeding $100,000 between such regular meetings of the Audit Committee. Any engagementpre-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 Rule2-01 of RegulationS-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 ofnon-audit services to MFS and MFS Related Entities that were notpre-approved by the Committee (because such services were provided prior to the effectiveness of SEC rules requiringpre-approval or 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.

SCHEDULE OF INVESTMENTS

A schedule of investments of each series of the Registrant is included as part of the report to shareholders of such series under Item 1 of this FormN-CSR.

ITEM 7.

DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FORCLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable to the Registrant.

ITEM 8.

PORTFOLIO MANAGERS OFCLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable to the Registrant.

ITEM 9.

PURCHASES OF EQUITY SECURITIES BYCLOSED-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 RegulationS-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 Rule30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as conducted within 90 days of the filing date of this report on FormN-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 Rule30a-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.

DISCLOSURE OF SECURITIES LENDING ACTIVITIES FORCLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable to the Registrant.

ITEM 13.

EXHIBITS.

(a) (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: Attached hereto asEX-99.COE.

(2)

A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule30a-2(a) under the Act (17 CFR270.30a-2): Attached hereto asEX-99.302CERT.

(3)

Any written solicitation to purchase securities under Rule23c-1 under the Act (17 CFR270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable.

(4)

Change in the registrant’s independent public accountant. Not applicable.

(b)

If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule30a-2(b) under the Act (17 CFR270.30a-2(b)), Rule13a-14(b) or Rule15d-14(b) under the Exchange Act (17 CFR240.13a-14(b) or240.15d-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 asEX-99.906CERT.

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.

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 VARIABLE INSURANCE TRUST II


By (Signature and Title)*		DAVID L. DILORENZO
		David L. DiLorenzo, President

Date: February 15, 2019

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)*		DAVID L. DILORENZO
		David L. DiLorenzo, President (Principal Executive Officer)

Date: February 15, 2019


By (Signature and Title)*		JAMES O. YOST
		James O. Yost, Treasurer (Principal Financial Officer and Accounting Officer)

Date: February 15, 2019

*	Print name and title of each signing officer under his or her signature.

Fair Value

Derivative Contracts

Asset Derivatives

Foreign Exchange

Forward Foreign Currency Exchange Contracts