UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21780
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MFS SERIES TRUST XII
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(Exact name of registrant as specified in charter)
500 Boylston Street, Boston, Massachusetts 02116
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(Address of principal executive offices) (Zip code)
Susan S. Newton
Massachusetts Financial Services Company
500 Boylston Street
Boston, Massachusetts 02116
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(Name and address of agents for service)
Registrant's telephone number, including area code: (617) 954-5000
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Date of fiscal year end: April 30*
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Date of reporting period: October 31, 2007
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* This Form N-CSR pertains to the following series of the Registrant: MFS
Lifetime Retirement Income Fund, MFS Lifetime 2010 Fund, MFS Lifetime 2020
Fund, MFS Lifetime 2030 Fund, and MFS Lifetime 2040 Fund. The remaining
series of the Registrant, MFS Sector Rotational Fund, has a fiscal year end
of October 31.
ITEM 1. REPORTS TO STOCKHOLDERS.
M F S(R)
INVESTMENT MANAGEMENT
[graphic omitted]
10/31/07 SEMIANNUAL REPORT
MFS(R) LIFETIME RETIREMENT INCOME FUND
MFS(R) LIFETIME 2010 FUND
MFS(R) LIFETIME 2020 FUND
MFS(R) LIFETIME 2030 FUND
MFS(R) LIFETIME 2040 FUND
LTF-SEM 10/07
MFS(R) Lifetime Funds
LETTER FROM THE CEO 1
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PORTFOLIO COMPOSITION 2
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EXPENSE TABLES 4
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PORTFOLIOS OF INVESTMENTS 8
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STATEMENTS OF ASSETS AND LIABILITIES 11
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STATEMENTS OF OPERATIONS 13
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STATEMENTS OF CHANGES IN NET ASSETS 14
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FINANCIAL HIGHLIGHTS 16
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NOTES TO FINANCIAL STATEMENTS 41
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BOARD REVIEW OF INVESTMENT ADVISORY AGREEMENT 56
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PROXY VOTING POLICIES AND INFORMATION 59
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QUARTERLY PORTFOLIO DISCLOSURE 59
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CONTACT INFORMATION BACK COVER
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THE REPORT IS PREPARED FOR THE GENERAL INFORMATION OF SHAREHOLDERS. IT IS
AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS ONLY WHEN PRECEDED OR
ACCOMPANIED BY A CURRENT PROSPECTUS.
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NOT FDIC INSURED o MAY LOSE VALUE o
NO BANK OR CREDIT UNION GUARANTEE o NOT A DEPOSIT o
NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY OR NCUA/NCUSIF
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LETTER FROM THE CEO
[Photo of Robert J. Manning]
Dear Shareholders:
The past year has been a great example of why investors should keep their eyes
on the long term.
In 2006 the Dow Jones Industrial Average returned 19% and was fairly stable.
This year we have seen a greater level of volatility than has been experienced
in recent years. The Dow hit several new highs but also experienced swift drops
as a global credit crisis swept through markets, spurred by defaults on U.S.
subprime loans and a liquidity crunch. Still, even with this volatility, the
Dow ended the first three quarters of 2007 with a return near 13%.
U.S. Treasury bonds gained ground, especially in the third quarter as investors
sought less risky asset classes. The spreads of many lower quality debt
investments widened.
In 2007 the U.S. dollar fell against the euro, oil prices have hit their
highest levels yet, and gold has spiked to its steepest price in 28 years.
Around the globe, stocks sold off as risk aversion mounted. As we have said
before, markets can be volatile, and investors should make sure they have an
investment plan that can carry them through the peaks and troughs.
If you are focused on a long-term investment strategy, the short-term ups and
downs of the markets should not necessarily dictate portfolio action on your
part. In our view, investors who remain committed to a long-term plan are more
likely to achieve their financial goals.
In any market environment, we believe individual investors are best served by
following a three-pronged investment strategy of allocating their holdings
across the major asset classes, diversifying within each class, and regularly
rebalancing their portfolios to maintain their desired allocations. Of course,
these strategies cannot guarantee a profit or protect against a loss. Investing
and planning for the long term require diligence and patience, two traits that
in our experience are essential to capitalizing on the many opportunities the
financial markets can offer -- through both up and down economic cycles.
Respectfully,
/s/ Robert J. Manning
Robert J. Manning
Chief Executive Officer and Chief Investment Officer
MFS Investment Management(R)
December 14, 2007
The opinions expressed in this letter are subject to change, may not be relied
upon for investment advice, and no forecasts can be guaranteed.
PORTFOLIO COMPOSITION
MFS(R) Lifetime Retirement Income Fund
PORTFOLIO TARGET ALLOCATION
Bond Funds 70.0%
U.S. Stock Funds 20.0%
Money Market Funds 10.0%
PORTFOLIO ACTUAL ALLOCATION
Bond Funds 69.5%
U.S. Stock Funds 20.1%
Money Market Funds 10.0%
Cash & Other Net Assets 0.4%
PORTFOLIO HOLDINGS
MFS Limited Maturity Fund 19.9%
------------------------------------------------
MFS Research Bond Fund 19.8%
------------------------------------------------
MFS Research Fund 10.1%
------------------------------------------------
MFS Value Fund 10.0%
------------------------------------------------
MFS Floating Rate High Income Fund 10.0%
------------------------------------------------
MFS Money Market Fund 10.0%
------------------------------------------------
MFS Government Securities Fund 9.9%
------------------------------------------------
MFS Inflation-Adjusted Bond Fund 9.9%
------------------------------------------------
Cash & Other Net Assets 0.4%
------------------------------------------------
MFS(R) Lifetime 2010 Fund
PORTFOLIO TARGET ALLOCATION
Bond Funds 58.3%
U.S. Stock Funds 28.8%
Money Market Funds 10.0%
International Stock Funds 2.9%
PORTFOLIO ACTUAL ALLOCATION
Bond Funds 58.0%
U.S. Stock Funds 28.7%
Money Market Funds 9.9%
International Stock Funds 3.0%
Cash & Other Net Assets 0.4%
PORTFOLIO HOLDINGS
MFS Limited Maturity Fund 19.9%
------------------------------------------------
MFS Research Bond Fund 19.9%
------------------------------------------------
MFS Research Fund 12.9%
------------------------------------------------
MFS Value Fund 12.9%
------------------------------------------------
MFS Money Market Fund 9.9%
------------------------------------------------
MFS Government Securities Fund 9.9%
------------------------------------------------
MFS Floating Rate High Income Fund 4.2%
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MFS Inflation-Adjusted Bond Fund 4.1%
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MFS Research International Fund 3.0%
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MFS Core Growth Fund 2.9%
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Cash & Other Net Assets 0.4%
------------------------------------------------
MFS(R) Lifetime 2020 Fund
PORTFOLIO TARGET ALLOCATION
U.S. Stock Funds 55.8%
Bond Funds 26.3%
International Stock Funds 15.8%
Money Market Funds 2.1%
PORTFOLIO ACTUAL ALLOCATION
U.S. Stock Funds 55.6%
Bond Funds 26.1%
International Stock Funds 15.9%
Money Market Funds 2.1%
Cash & Other Net Assets 0.3%
PORTFOLIO HOLDINGS
MFS Value Fund 14.9%
------------------------------------------------
MFS Research Bond Fund 14.1%
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MFS Research International Fund 13.0%
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MFS Core Growth Fund 12.9%
------------------------------------------------
MFS Research Fund 12.0%
------------------------------------------------
MFS Mid Cap Value Fund 7.9%
------------------------------------------------
MFS Mid Cap Growth Fund 7.9%
------------------------------------------------
MFS Government Securities Fund 7.0%
------------------------------------------------
MFS High Income Fund 5.0%
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MFS International New Discovery Fund 2.9%
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MFS Money Market Fund 2.1%
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Cash & Other Net Assets 0.3%
------------------------------------------------
MFS(R) Lifetime 2030 Fund
PORTFOLIO TARGET ALLOCATION
U.S. Stock Funds 75.8%
International Stock Funds 20.0%
Bond Funds 4.2%
PORTFOLIO ACTUAL ALLOCATION
U.S. Stock Funds 75.6%
International Stock Funds 19.9%
Bond Funds 4.1%
Cash & Other Net Assets 0.4%
PORTFOLIO HOLDINGS
MFS Core Growth Fund 18.9%
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MFS Value Fund 14.9%
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MFS Mid Cap Growth Fund 13.9%
------------------------------------------------
MFS Mid Cap Value Fund 13.9%
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MFS Research International Fund 11.0%
------------------------------------------------
MFS Research Fund 10.0%
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MFS International New Discovery Fund 8.9%
------------------------------------------------
MFS New Discovery Fund 4.0%
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MFS Research Bond Fund 2.1%
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MFS High Income Fund 1.0%
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MFS Government Securities Fund 1.0%
------------------------------------------------
Cash & Other Net Assets 0.4%
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MFS(R) Lifetime 2040 Fund
PORTFOLIO TARGET ALLOCATION
U.S. Stock Funds 80.0%
International Stock Funds 20.0%
PORTFOLIO ACTUAL ALLOCATION
U.S. Stock Funds 79.4%
International Stock Funds 19.9%
Cash & Other Net Assets 0.7%
PORTFOLIO HOLDINGS
MFS Core Growth Fund 19.8%
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MFS Mid Cap Growth Fund 14.9%
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MFS Mid Cap Value Fund 14.9%
------------------------------------------------
MFS Value Fund 14.9%
------------------------------------------------
MFS Research International Fund 10.0%
------------------------------------------------
MFS International New Discovery Fund 9.9%
------------------------------------------------
MFS Research Fund 9.9%
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MFS New Discovery Fund 5.0%
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Cash & Other Net Assets 0.7%
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Percentages are based on net assets as of 10/31/07.
The portfolios are actively managed and current holdings may be different.
EXPENSE TABLES
FUND EXPENSES BORNE BY THE SHAREHOLDERS DURING THE PERIOD, MAY 1, 2007 THROUGH
OCTOBER 31, 2007
As a shareholder of the funds, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on certain purchase or redemption
payments and (2) ongoing costs, including management fees; distribution and
service (12b-1) fees; and other fund expenses. These examples are intended to
help you understand your ongoing costs (in dollars) of investing in the funds
and to compare these costs with the ongoing costs of investing in other mutual
funds.
These examples are based on an investment of $1,000 invested at the beginning
of the period and held for the entire period May 1, 2007 through October 31,
2007.
ACTUAL EXPENSES
The first line for each share class in the following tables provides
information about actual account values and actual expenses. You may use the
information in this line, together with the amount you invested, to estimate
the expenses that you paid over the period. Simply divide your account value by
$1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then
multiply the result by the number in the first line under the heading entitled
"Expenses Paid During Period" to estimate the expenses you paid on your account
during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line for each share class in the following tables provides
information about hypothetical account values and hypothetical expenses based
on each fund's actual expense ratio and an assumed rate of return of 5% per
year before expenses, which is not each fund's actual return. The hypothetical
account values and expenses may not be used to estimate the actual ending
account balance or expenses you paid for the period. You may use this
information to compare the ongoing costs of investing in each fund and other
funds. To do so, compare this 5% hypothetical example with the 5% hypothetical
examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads). Therefore, the second line for each share class in the tables
is useful in comparing ongoing costs only, and will not help you determine the
relative total costs of owning different funds. In addition, if these
transactional costs were included, your costs would have been higher.
In addition to the fees and expenses which each fund bears directly, each fund
indirectly bears a pro rata share of the fees and expenses of the underlying
funds in which each fund invests. Because the underlying funds have varied
expenses and fee levels and each fund may own different proportions of the
underlying funds at different times, the amount of fees and expenses incurred
indirectly by the funds will vary. If these transactional and indirect costs
were included, your costs would have been higher.
MFS(R) LIFETIME RETIREMENT INCOME FUND
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Expenses
Paid During
Annualized Beginning Ending Period(p)
Share Expense Account Value Account Value 5/01/07-
Class Ratio 5/01/07 10/31/07 10/31/07
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Actual 0.45% $1,000.00 $1,029.63 $2.30
A -----------------------------------------------------------------------
Hypothetical (h) 0.45% $1,000.00 $1,022.87 $2.29
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Actual 1.10% $1,000.00 $1,026.30 $5.60
B -----------------------------------------------------------------------
Hypothetical (h) 1.10% $1,000.00 $1,019.61 $5.58
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Actual 1.10% $1,000.00 $1,027.28 $5.61
C -----------------------------------------------------------------------
Hypothetical (h) 1.10% $1,000.00 $1,019.61 $5.58
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Actual 0.10% $1,000.00 $1,032.42 $0.51
I -----------------------------------------------------------------------
Hypothetical (h) 0.10% $1,000.00 $1,024.63 $0.51
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Actual 1.20% $1,000.00 $1,026.79 $6.11
R1 -----------------------------------------------------------------------
Hypothetical (h) 1.20% $1,000.00 $1,019.10 $6.09
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Actual 0.85% $1,000.00 $1,027.58 $4.33
R2 -----------------------------------------------------------------------
Hypothetical (h) 0.85% $1,000.00 $1,020.86 $4.32
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Actual 0.75% $1,000.00 $1,029.08 $3.83
R3 -----------------------------------------------------------------------
Hypothetical (h) 0.75% $1,000.00 $1,021.37 $3.81
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Actual 0.50% $1,000.00 $1,030.37 $2.55
R4 -----------------------------------------------------------------------
Hypothetical (h) 0.50% $1,000.00 $1,022.62 $2.54
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Actual 0.20% $1,000.00 $1,030.90 $1.02
R5 -----------------------------------------------------------------------
Hypothetical (h) 0.20% $1,000.00 $1,024.13 $1.02
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MFS(R) LIFETIME 2010 FUND
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Expenses
Paid During
Annualized Beginning Ending Period(p)
Share Expense Account Value Account Value 5/01/07-
Class Ratio 5/01/07 10/31/07 10/31/07
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Actual 0.45% $1,000.00 $1,039.71 $2.31
A ------------------------------------------------------------------------
Hypothetical (h) 0.45% $1,000.00 $1,022.87 $2.29
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Actual 1.10% $1,000.00 $1,036.30 $5.63
B ------------------------------------------------------------------------
Hypothetical (h) 1.10% $1,000.00 $1,019.61 $5.58
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Actual 1.10% $1,000.00 $1,036.30 $5.63
C ------------------------------------------------------------------------
Hypothetical (h) 1.10% $1,000.00 $1,019.61 $5.58
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Actual 0.10% $1,000.00 $1,041.40 $0.51
I ------------------------------------------------------------------------
Hypothetical (h) 0.10% $1,000.00 $1,024.63 $0.51
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Actual 1.20% $1,000.00 $1,035.49 $6.14
R1 ------------------------------------------------------------------------
Hypothetical (h) 1.20% $1,000.00 $1,019.10 $6.09
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Actual 0.85% $1,000.00 $1,038.08 $4.35
R2 ------------------------------------------------------------------------
Hypothetical (h) 0.85% $1,000.00 $1,020.86 $4.32
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Actual 0.75% $1,000.00 $1,038.04 $3.84
R3 ------------------------------------------------------------------------
Hypothetical (h) 0.75% $1,000.00 $1,021.37 $3.81
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Actual 0.50% $1,000.00 $1,038.84 $2.56
R4 ------------------------------------------------------------------------
Hypothetical (h) 0.50% $1,000.00 $1,022.62 $2.54
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Actual 0.20% $1,000.00 $1,040.50 $1.03
R5 ------------------------------------------------------------------------
Hypothetical (h) 0.20% $1,000.00 $1,024.13 $1.02
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MFS(R) LIFETIME 2020 FUND
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Expenses
Paid During
Annualized Beginning Ending Period(p)
Share Expense Account Value Account Value 5/01/07-
Class Ratio 5/01/07 10/31/07 10/31/07
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Actual 0.45% $1,000.00 $1,058.23 $2.33
A ------------------------------------------------------------------------
Hypothetical (h) 0.45% $1,000.00 $1,022.87 $2.29
- --------------------------------------------------------------------------------
Actual 1.10% $1,000.00 $1,054.28 $5.68
B ------------------------------------------------------------------------
Hypothetical (h) 1.10% $1,000.00 $1,019.61 $5.58
- --------------------------------------------------------------------------------
Actual 1.10% $1,000.00 $1,053.48 $5.68
C ------------------------------------------------------------------------
Hypothetical (h) 1.10% $1,000.00 $1,019.61 $5.58
- --------------------------------------------------------------------------------
Actual 0.10% $1,000.00 $1,058.82 $0.52
I ------------------------------------------------------------------------
Hypothetical (h) 0.10% $1,000.00 $1,024.63 $0.51
- --------------------------------------------------------------------------------
Actual 1.20% $1,000.00 $1,054.33 $6.20
R1 ------------------------------------------------------------------------
Hypothetical (h) 1.20% $1,000.00 $1,019.10 $6.09
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Actual 0.85% $1,000.00 $1,055.04 $4.39
R2 ------------------------------------------------------------------------
Hypothetical (h) 0.85% $1,000.00 $1,020.86 $4.32
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Actual 0.75% $1,000.00 $1,055.79 $3.88
R3 ------------------------------------------------------------------------
Hypothetical (h) 0.75% $1,000.00 $1,021.37 $3.81
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Actual 0.50% $1,000.00 $1,057.38 $2.59
R4 ------------------------------------------------------------------------
Hypothetical (h) 0.50% $1,000.00 $1,022.62 $2.54
- --------------------------------------------------------------------------------
Actual 0.20% $1,000.00 $1,057.98 $1.03
R5 ------------------------------------------------------------------------
Hypothetical (h) 0.20% $1,000.00 $1,024.13 $1.02
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MFS(R) LIFETIME 2030 FUND
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Expenses
Paid During
Annualized Beginning Ending Period(p)
Share Expense Account Value Account Value 5/01/07-
Class Ratio 5/01/07 10/31/07 10/31/07
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Actual 0.45% $1,000.00 $1,065.36 $2.34
A ------------------------------------------------------------------------
Hypothetical (h) 0.45% $1,000.00 $1,022.87 $2.29
- --------------------------------------------------------------------------------
Actual 1.10% $1,000.00 $1,062.45 $5.70
B ------------------------------------------------------------------------
Hypothetical (h) 1.10% $1,000.00 $1,019.61 $5.58
- --------------------------------------------------------------------------------
Actual 1.10% $1,000.00 $1,062.30 $5.70
C ------------------------------------------------------------------------
Hypothetical (h) 1.10% $1,000.00 $1,019.61 $5.58
- --------------------------------------------------------------------------------
Actual 0.10% $1,000.00 $1,066.72 $0.52
I ------------------------------------------------------------------------
Hypothetical (h) 0.10% $1,000.00 $1,024.63 $0.51
- --------------------------------------------------------------------------------
Actual 1.20% $1,000.00 $1,060.81 $6.22
R1 ------------------------------------------------------------------------
Hypothetical (h) 1.20% $1,000.00 $1,019.10 $6.09
- --------------------------------------------------------------------------------
Actual 0.85% $1,000.00 $1,063.01 $4.41
R2 ------------------------------------------------------------------------
Hypothetical (h) 0.85% $1,000.00 $1,020.86 $4.32
- --------------------------------------------------------------------------------
Actual 0.75% $1,000.00 $1,063.93 $3.89
R3 ------------------------------------------------------------------------
Hypothetical (h) 0.75% $1,000.00 $1,021.37 $3.81
- --------------------------------------------------------------------------------
Actual 0.50% $1,000.00 $1,064.60 $2.59
R4 ------------------------------------------------------------------------
Hypothetical (h) 0.50% $1,000.00 $1,022.62 $2.54
- --------------------------------------------------------------------------------
Actual 0.20% $1,000.00 $1,065.96 $1.04
R5 ------------------------------------------------------------------------
Hypothetical (h) 0.20% $1,000.00 $1,024.13 $1.02
- --------------------------------------------------------------------------------
MFS(R) LIFETIME 2040 FUND
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Expenses
Paid During
Annualized Beginning Ending Period(p)
Share Expense Account Value Account Value 5/01/07-
Class Ratio 5/01/07 10/31/07 10/31/07
- --------------------------------------------------------------------------------
Actual 0.45% $1,000.00 $1,065.20 $2.34
A ------------------------------------------------------------------------
Hypothetical (h) 0.45% $1,000.00 $1,022.87 $2.29
- --------------------------------------------------------------------------------
Actual 1.10% $1,000.00 $1,062.24 $5.70
B ------------------------------------------------------------------------
Hypothetical (h) 1.10% $1,000.00 $1,019.61 $5.58
- --------------------------------------------------------------------------------
Actual 1.10% $1,000.00 $1,062.96 $5.70
C ------------------------------------------------------------------------
Hypothetical (h) 1.10% $1,000.00 $1,019.61 $5.58
- --------------------------------------------------------------------------------
Actual 0.10% $1,000.00 $1,067.37 $0.52
I ------------------------------------------------------------------------
Hypothetical (h) 0.10% $1,000.00 $1,024.63 $0.51
- --------------------------------------------------------------------------------
Actual 1.20% $1,000.00 $1,062.30 $6.22
R1 ------------------------------------------------------------------------
Hypothetical (h) 1.20% $1,000.00 $1,019.10 $6.09
- --------------------------------------------------------------------------------
Actual 0.85% $1,000.00 $1,063.78 $4.41
R2 ------------------------------------------------------------------------
Hypothetical (h) 0.85% $1,000.00 $1,020.86 $4.32
- --------------------------------------------------------------------------------
Actual 0.75% $1,000.00 $1,064.54 $3.89
R3 ------------------------------------------------------------------------
Hypothetical (h) 0.75% $1,000.00 $1,021.37 $3.81
- --------------------------------------------------------------------------------
Actual 0.50% $1,000.00 $1,065.20 $2.60
R4 ------------------------------------------------------------------------
Hypothetical (h) 0.50% $1,000.00 $1,022.62 $2.54
- --------------------------------------------------------------------------------
Actual 0.20% $1,000.00 $1,067.42 $1.04
R5 ------------------------------------------------------------------------
Hypothetical (h) 0.20% $1,000.00 $1,024.13 $1.02
- --------------------------------------------------------------------------------
(h) 5% class return per year before expenses.
(p) Expenses paid is equal to each class' annualized expense ratio, as shown
above, multiplied by the average account value over the period, multiplied
by the number of days in the period, divided by the number of days in the
year. Expenses paid do not include any applicable sales charges (loads). If
these transaction costs had been included, your costs would have been
higher.
PORTFOLIOS OF INVESTMENTS
10/31/07 (unaudited)
MFS(R) LIFETIME RETIREMENT INCOME FUND
The Portfolio of Investments is a complete list of all securities owned by your fund.
Mutual Funds - 99.6%
- ---------------------------------------------------------------------------------------------------------------------------------
ISSUER SHARES/PAR VALUE ($)
- ---------------------------------------------------------------------------------------------------------------------------------
MFS Floating Rate High Income Fund - Class I 163,839 $ 1,594,155
MFS Government Securities Fund - Class I 166,902 1,585,568
MFS Inflation-Adjusted Bond Fund - Class I 158,766 1,582,894
MFS Limited Maturity Fund - Class I 500,669 3,174,242
MFS Money Market Fund 1,592,432 1,592,432
MFS Research Bond Fund - Class I 319,323 3,167,680
MFS Research Fund - Class I 56,459 1,604,575
MFS Value Fund - Class I 53,808 1,602,928
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL MUTUAL FUNDS (IDENTIFIED COST, $15,591,588) $15,904,474
- ---------------------------------------------------------------------------------------------------------------------------------
Other Assets, Less Liabilities - 0.4% 66,837
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - 100.0% $15,971,311
- ---------------------------------------------------------------------------------------------------------------------------------
MFS(R) LIFETIME 2010 FUND
Mutual Funds - 99.6%
- ---------------------------------------------------------------------------------------------------------------------------------
ISSUER SHARES/PAR VALUE ($)
- ---------------------------------------------------------------------------------------------------------------------------------
MFS Core Growth Fund - Class I 27,245 $ 625,278
MFS Floating Rate High Income Fund - Class I 90,779 883,276
MFS Government Securities Fund - Class I 222,864 2,117,206
MFS Inflation-Adjusted Bond Fund - Class I 88,477 882,112
MFS Limited Maturity Fund - Class I 668,097 4,235,736
MFS Money Market Fund 2,119,369 2,119,369
MFS Research Bond Fund - Class I 426,907 4,234,922
MFS Research Fund - Class I 96,755 2,749,769
MFS Research International Fund - Class I 27,032 630,663
MFS Value Fund - Class I 92,211 2,746,975
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL MUTUAL FUNDS (IDENTIFIED COST, $20,413,251) $21,225,306
- ---------------------------------------------------------------------------------------------------------------------------------
Short-Term Obligations - 0.8%
- ---------------------------------------------------------------------------------------------------------------------------------
Falcon Asset Securitization Co. LLC, 4.95%, due 11/01/07, at Amortized Cost and Value (y) $ 184,000 $ 184,000
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (IDENTIFIED COST, $20,597,251) $21,409,306
- ---------------------------------------------------------------------------------------------------------------------------------
Other Assets, Less Liabilities - (0.4)% (95,498)
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - 100.0% $21,313,808
- ---------------------------------------------------------------------------------------------------------------------------------
SEE PORTFOLIO FOOTNOTES AND NOTES TO FINANCIAL STATEMENTS
MFS(R) LIFETIME 2020 FUND
Mutual Funds - 99.7%
ISSUER SHARES/PAR VALUE ($)
- ---------------------------------------------------------------------------------------------------------------------------------
MFS Core Growth Fund - Class I 335,333 $ 7,695,895
MFS Government Securities Fund - Class I 442,166 4,200,578
MFS High Income Fund - Class I 783,829 2,970,713
MFS International New Discovery Fund - Class I 52,976 1,752,455
MFS Mid Cap Growth Fund - Class I (a) 435,233 4,709,224
MFS Mid Cap Value Fund - Class I 304,707 4,710,770
MFS Money Market Fund 1,236,035 1,236,035
MFS Research Bond Fund - Class I 846,809 8,400,345
MFS Research Fund - Class I 252,949 7,188,811
MFS Research International Fund - Class I 332,218 7,750,635
MFS Value Fund - Class I 299,485 8,921,657
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL MUTUAL FUNDS (IDENTIFIED COST, $54,538,881) $59,537,118
- ---------------------------------------------------------------------------------------------------------------------------------
Short-Term Obligations - 0.4%
- ---------------------------------------------------------------------------------------------------------------------------------
General Electric Capital Corp., 4.9%, due 11/01/07, at Amortized Cost and Value (y) $ 224,000 $ 224,000
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (IDENTIFIED COST, $54,762,881) $59,761,118
- ---------------------------------------------------------------------------------------------------------------------------------
Other Assets, Less Liabilities - (0.1)% (45,665)
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - 100.0% $59,715,453
- ---------------------------------------------------------------------------------------------------------------------------------
MFS(R) LIFETIME 2030 FUND
Mutual Funds - 99.6%
- ---------------------------------------------------------------------------------------------------------------------------------
ISSUER SHARES/PAR VALUE ($)
- ---------------------------------------------------------------------------------------------------------------------------------
MFS Core Growth Fund - Class I 339,703 $ 7,796,181
MFS Government Securities Fund - Class I 44,577 423,482
MFS High Income Fund - Class I 112,542 426,536
MFS International New Discovery Fund - Class I 111,414 3,685,563
MFS Mid Cap Growth Fund - Class I (a) 530,527 5,740,296
MFS Mid Cap Value Fund - Class I 371,235 5,739,296
MFS New Discovery Fund - Class I (a) 72,587 1,628,858
MFS Research Bond Fund - Class I 85,413 847,300
MFS Research Fund - Class I 144,688 4,112,034
MFS Research International Fund - Class I 194,739 4,543,251
MFS Value Fund - Class I 207,036 6,167,605
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL MUTUAL FUNDS (IDENTIFIED COST, $37,009,729) $41,110,402
- ---------------------------------------------------------------------------------------------------------------------------------
Short-Term Obligations - 0.9%
- ---------------------------------------------------------------------------------------------------------------------------------
Falcon Asset Securitization Co. LLC, 4.95%, due 11/01/07, at Amortized Cost and Value (y) $ 350,000 $ 350,000
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (IDENTIFIED COST, $37,359,729) $41,460,402
- ---------------------------------------------------------------------------------------------------------------------------------
Other Assets, Less Liabilities - (0.5)% (188,364)
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - 100.0% $41,272,038
- ---------------------------------------------------------------------------------------------------------------------------------
SEE PORTFOLIO FOOTNOTES AND NOTES TO FINANCIAL STATEMENTS
MFS(R) LIFETIME 2040 FUND
Mutual Funds - 99.3%
- ---------------------------------------------------------------------------------------------------------------------------------
ISSUER SHARES/PAR VALUE ($)
- ---------------------------------------------------------------------------------------------------------------------------------
MFS Core Growth Fund - Class I 184,809 $ 4,241,361
MFS International New Discovery Fund - Class I 64,239 2,125,013
MFS Mid Cap Growth Fund - Class I (a) 293,868 3,179,652
MFS Mid Cap Value Fund - Class I 205,501 3,177,051
MFS New Discovery Fund - Class I (a) 47,725 1,070,950
MFS Research Fund - Class I 74,554 2,118,811
MFS Research International Fund - Class I 91,282 2,129,606
MFS Value Fund - Class I 106,601 3,175,658
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL MUTUAL FUNDS (IDENTIFIED COST, $18,989,729) $21,218,102
- ---------------------------------------------------------------------------------------------------------------------------------
Short-Term Obligations - 0.5%
- ---------------------------------------------------------------------------------------------------------------------------------
Falcon Asset Securitization Co. LLC, 4.95%, due 11/01/07, at Amortized Cost and Value (y) $ 103,000 $ 103,000
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (IDENTIFIED COST, $19,092,729) $21,321,102
- ---------------------------------------------------------------------------------------------------------------------------------
Other Assets, Less Liabilities - 0.2% 43,133
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - 100.0% $21,364,235
- ---------------------------------------------------------------------------------------------------------------------------------
(a) Non-income producing security.
(y) The rate shown represents an annualized yield at time of purchase.
SEE NOTES TO FINANCIAL STATEMENTS
Financial Statements
STATEMENTS OF ASSETS AND LIABILITIES
At 10/31/07 (unaudited)
This statement represents each fund's balance sheet, which details the assets and liabilities comprising the total value
of the fund.
LIFETIME
RETIREMENT LIFETIME LIFETIME LIFETIME LIFETIME
ASSETS INCOME FUND 2010 FUND 2020 FUND 2030 FUND 2040 FUND
- --------------------------------------------------------------------------------------------------------------------------------
Investments
Underlying funds, at value (identified cost,
$15,591,588, $20,413,251, $54,538,881, $37,009,729, and
$18,989,729, respectively) $15,904,474 $21,225,306 $59,537,118 $41,110,402 $21,218,102
Short-term holdings, at amortized cost and value -- 184,000 224,000 350,000 103,000
- --------------------------------------------------------------------------------------------------------------------------------
Total investments, at value (identified cost, $15,591,588,
$20,597,251, $54,762,881, $37,359,729, and
$19,092,729, respectively) $15,904,474 $21,409,306 $59,761,118 $41,460,402 $21,321,102
Cash -- 782 762 997 528
Receivable for investments sold 39,440 -- -- 174,050 --
Receivable for fund shares sold 36,037 214,512 403,507 150,997 89,358
Dividends receivable 53,265 61,600 79,389 8,129 --
Receivable from investment adviser 45,074 54,979 51,166 45,008 51,875
- --------------------------------------------------------------------------------------------------------------------------------
Total assets $16,078,290 $21,741,179 $60,295,942 $41,839,583 $21,462,863
- --------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
- --------------------------------------------------------------------------------------------------------------------------------
Payable to custodian $17,645 $-- $-- $-- $--
Distributions payable 1,818 -- -- -- --
Payable for investments purchased 63,224 354,497 568,097 331,708 92,367
Payable for fund shares reacquired 22,306 65,434 7,206 230,693 202
Payable to affiliates
Shareholder servicing costs 1,177 852 2,224 1,498 541
Distribution and service fees 383 499 1,471 955 485
Administrative services fee 96 96 96 96 96
Retirement plan administration and service fees 114 145 428 311 141
Payable for independent trustees' compensation 137 99 117 126 114
Accrued expenses and other liabilities 79 5,749 850 2,158 4,682
- --------------------------------------------------------------------------------------------------------------------------------
Total liabilities $106,979 $427,371 $580,489 $567,545 $98,628
- --------------------------------------------------------------------------------------------------------------------------------
Net assets $15,971,311 $21,313,808 $59,715,453 $41,272,038 $21,364,235
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF
- --------------------------------------------------------------------------------------------------------------------------------
Paid-in capital $15,533,443 $19,964,001 $53,674,746 $36,836,125 $18,893,876
Unrealized appreciation (depreciation) on investments 312,886 812,054 4,998,237 4,100,674 2,228,373
Accumulated net realized gain (loss) on investments 125,260 155,256 569,154 357,530 270,109
Accumulated undistributed (distributions in excess of) net
investment income (278) 382,497 473,316 (22,291) (28,123)
- --------------------------------------------------------------------------------------------------------------------------------
Net assets $15,971,311 $21,313,808 $59,715,453 $41,272,038 $21,364,235
- --------------------------------------------------------------------------------------------------------------------------------
Net assets
Class A $2,292,244 $3,547,787 $8,629,940 $5,076,577 $2,929,812
Class B 753,179 792,711 4,175,384 1,895,215 1,571,349
Class C 853,392 823,206 1,881,464 624,871 375,335
Class I 64,217 570,536 980,696 1,023,729 1,531,019
Class R1 1,156,987 1,100,615 4,425,520 2,828,921 1,327,540
Class R2 746,822 1,517,898 5,331,873 3,738,385 1,700,905
Class R3 3,579,857 6,611,476 16,337,483 13,101,757 6,111,239
Class R4 6,325,856 5,846,945 16,088,248 11,228,472 4,524,820
Class R5 198,757 502,634 1,864,845 1,754,111 1,292,216
- --------------------------------------------------------------------------------------------------------------------------------
Total net assets $15,971,311 $21,313,808 $59,715,453 $41,272,038 $21,364,235
- --------------------------------------------------------------------------------------------------------------------------------
Statements of Assets and Liabilities (unaudited) - continued
LIFETIME
RETIREMENT LIFETIME LIFETIME LIFETIME LIFETIME
INCOME FUND 2010 FUND 2020 FUND 2030 FUND 2040 FUND
SHARES OF BENEFICIAL INTEREST OUTSTANDING
CLASS A 219,140 308,021 688,358 389,224 224,103
CLASS B 71,981 69,413 335,954 146,629 121,110
CLASS C 81,543 72,112 151,580 48,216 28,881
CLASS I 6,136 49,302 77,805 78,084 116,420
CLASS R1 110,617 96,679 356,463 219,042 102,468
CLASS R2 71,405 132,597 427,758 287,805 130,691
CLASS R3 342,023 576,978 1,308,542 1,009,464 469,135
CLASS R4 604,924 508,305 1,283,771 862,374 346,127
CLASS R5 18,981 43,476 148,105 133,984 98,365
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL SHARES OF BENEFICIAL INTEREST OUTSTANDING 1,526,750 1,856,883 4,778,336 3,174,822 1,637,300
- -----------------------------------------------------------------------------------------------------------------------------------
Class A shares
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value per share
(net assets / shares of beneficial interest outstanding) $10.46 $11.52 $12.54 $13.04 $13.07
- -----------------------------------------------------------------------------------------------------------------------------------
Offering price per share (100/94.25 x net asset value per share) $11.10 $12.22 $13.31 $13.84 $13.87
- -----------------------------------------------------------------------------------------------------------------------------------
Class B shares
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value and offering price per share
(net assets / shares of beneficial interest outstanding) $10.46 $11.42 $12.43 $12.93 $12.97
- -----------------------------------------------------------------------------------------------------------------------------------
Class C shares
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value and offering price per share
(net assets / shares of beneficial interest outstanding) $10.47 $11.42 $12.41 $12.96 $13.00
- -----------------------------------------------------------------------------------------------------------------------------------
Class I shares
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, offering price, and redemption price per share
(net assets / shares of beneficial interest outstanding) $10.47 $11.57 $12.60 $13.11 $13.15
- -----------------------------------------------------------------------------------------------------------------------------------
Class R1 shares
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, offering price, and redemption price per share
(net assets / shares of beneficial interest outstanding) $10.46 $11.38 $12.42 $12.91 $12.96
- -----------------------------------------------------------------------------------------------------------------------------------
Class R2 shares
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, offering price, and redemption price per share
(net assets / shares of beneficial interest outstanding) $10.46 $11.45 $12.46 $12.99 $13.01
- -----------------------------------------------------------------------------------------------------------------------------------
Class R3 shares
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, offering price, and redemption price per share
(net assets / shares of beneficial interest outstanding) $10.47 $11.46 $12.49 $12.98 $13.03
- -----------------------------------------------------------------------------------------------------------------------------------
Class R4 shares
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, offering price, and redemption price per share
(net assets / shares of beneficial interest outstanding) $10.46 $11.50 $12.53 $13.02 $13.07
- -----------------------------------------------------------------------------------------------------------------------------------
Class R5 shares
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, offering price, and redemption price per share
(net assets / shares of beneficial interest outstanding) $10.47 $11.56 $12.59 $13.09 $13.14
- -----------------------------------------------------------------------------------------------------------------------------------
On sales of $50,000 or more, the offering price of Class A shares is reduced.
A contingent deferred sales charge may be imposed on redemptions of Class A, Class B, and Class C shares.
SEE NOTES TO FINANCIAL STATEMENTS
Financial Statements
STATEMENTS OF OPERATIONS
Six months ended 10/31/07 (unaudited)
This statement describes how much each fund earned in investment income and accrued in expenses. They also describe any gains
or losses generated by each fund's operations.
LIFETIME
RETIREMENT LIFETIME LIFETIME LIFETIME LIFETIME
INCOME FUND 2010 FUND 2020 FUND 2030 FUND 2040 FUND
NET INVESTMENT INCOME (LOSS)
- --------------------------------------------------------------------------------------------------------------------------------
Dividends from underlying funds $237,389 $316,044 $457,122 $70,511 $19,535
Interest 7,732 4,417 11,340 9,464 5,399
- --------------------------------------------------------------------------------------------------------------------------------
Total investment income $245,121 $320,461 $468,462 $79,975 $24,934
- --------------------------------------------------------------------------------------------------------------------------------
Expenses
Distribution and service fees $26,639 $36,455 $116,737 $66,321 $37,632
Shareholder servicing costs 3,697 7,208 13,434 9,538 6,216
Administrative services fee 8,823 8,823 8,823 8,823 8,823
Retirement plan administration and services fees 7,134 10,438 32,399 20,272 10,267
Independent trustees' compensation 722 738 751 736 733
Custodian fee 6,103 2,099 4,324 3,536 2,731
Shareholder communications 6,425 6,933 10,287 9,185 8,641
Auditing fees 14,762 14,762 14,762 14,762 14,762
Legal fees 164 184 294 227 180
Registration fees 45,782 59,206 62,988 55,447 60,211
Miscellaneous 4,103 4,175 5,161 4,435 4,199
- --------------------------------------------------------------------------------------------------------------------------------
Total expenses $124,354 $151,021 $269,960 $193,282 $154,395
- --------------------------------------------------------------------------------------------------------------------------------
Fees paid indirectly -- -- -- (297) (78)
Reduction of expenses by investment adviser (85,022) (95,539) (95,339) (90,719) (97,648)
- --------------------------------------------------------------------------------------------------------------------------------
Net expenses $39,332 $55,482 $174,621 $102,266 $56,669
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) $205,789 $264,979 $293,841 $(22,291) $(31,735)
- --------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS
- --------------------------------------------------------------------------------------------------------------------------------
Realized gain (loss) (identified cost basis)
Investment transactions from underlying funds $108,309 $98,426 $373,369 $165,690 $148,398
- --------------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation)
Investments $135,827 $358,914 $2,239,239 $2,000,061 $1,047,069
- --------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments $244,136 $457,340 $2,612,608 $2,165,751 $1,195,467
- --------------------------------------------------------------------------------------------------------------------------------
Change in net assets from operations $449,925 $722,319 $2,906,449 $2,143,460 $1,163,732
- --------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS
Financial Statements
STATEMENTS OF CHANGES IN NET ASSETS
(unaudited)
This statement describes the increases and/or decreases in net assets resulting from operations, any distributions,
and any shareholder transactions.
LIFETIME
RETIREMENT LIFETIME LIFETIME LIFETIME LIFETIME
SIX MONTHS ENDED 10/31/07 INCOME FUND 2010 FUND 2020 FUND 2030 FUND 2040 FUND
CHANGE IN NET ASSETS
FROM OPERATIONS
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) $205,789 $264,979 $293,841 $(22,291) $(31,735)
Net realized gain (loss) on investments 108,309 98,426 373,369 165,690 148,398
Net unrealized gain (loss) on investments 135,827 358,914 2,239,239 2,000,061 1,047,069
- --------------------------------------------------------------------------------------------------------------------------------
Change in net assets from operations $449,925 $722,319 $2,906,449 $2,143,460 $1,163,732
- --------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS DECLARED TO SHAREHOLDERS
- --------------------------------------------------------------------------------------------------------------------------------
From net investment income
Class A $(38,168) $-- $-- $-- $--
Class B (12,062) -- -- -- --
Class C (12,245) -- -- -- --
Class I (1,367) -- -- -- --
Class R1 (18,226) -- -- -- --
Class R2 (9,037) -- -- -- --
Class R3 (40,951) -- -- -- --
Class R4 (73,142) -- -- -- --
Class R5 (2,281) -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Total distributions declared to shareholders $(207,479) $-- $-- $-- $--
- --------------------------------------------------------------------------------------------------------------------------------
Change in net assets from fund share transactions $8,772,151 $6,578,969 $16,406,065 $14,636,966 $6,865,022
- --------------------------------------------------------------------------------------------------------------------------------
Total change in net assets $9,014,597 $7,301,288 $19,312,514 $16,780,426 $8,028,754
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------------------------------------------------------
At beginning of period 6,956,714 14,012,520 40,402,939 24,491,612 13,335,481
At end of period $15,971,311 $21,313,808 $59,715,453 $41,272,038 $21,364,235
- --------------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed (distributions in excess of) net
investment income included in net assets at end of period $(278) $382,497 $473,316 $(22,291) $(28,123)
- --------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS
Statements of Changes in Net Assets - continued
LIFETIME
RETIREMENT LIFETIME LIFETIME LIFETIME LIFETIME
YEAR ENDED 4/30/07 INCOME FUND 2010 FUND 2020 FUND 2030 FUND 2040 FUND
CHANGE IN NET ASSETS
FROM OPERATIONS
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income $171,423 $231,953 $323,103 $62,461 $14,470
Net realized gain (loss) on investments 32,514 122,000 611,859 368,412 241,917
Net unrealized gain (loss) on investments 177,017 431,476 2,548,872 1,987,026 1,058,981
- --------------------------------------------------------------------------------------------------------------------------------
Change in net assets from operations $380,954 $785,429 $3,483,834 $2,417,899 $1,315,368
- --------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS DECLARED TO SHAREHOLDERS
- --------------------------------------------------------------------------------------------------------------------------------
From net investment income
Class A $(56,220) $(40,721) $(77,396) $(31,554) $(17,750)
Class B (16,185) (6,779) (21,132) (6,358) (2,583)
Class C (14,346) (5,135) (6,954) (728) (273)
Class I (2,175) (5,828) (6,283) (10,337) (7,937)
Class R1 (20,188) (6,998) (13,590) (5,480) (1,219)
Class R2 (4,260) (6,576) (16,023) (2,401) (2,016)
Class R3 (46,630) (29,994) (75,783) (35,701) (12,148)
Class R4 (8,735) (38,189) (101,681) (62,469) (12,642)
Class R5 (2,144) (1,111) (844) (706) (496)
From net realized gain on investments
Class A (1,490) (3,708) (32,706) (3,664) (9,943)
Class B (454) (793) (12,850) (1,178) (3,741)
Class C (323) (591) (3,515) (205) (637)
Class I (45) (489) (2,342) (1,051) (3,758)
Class R1 (882) (751) (7,946) (989) (1,392)
Class R2 (79) (665) (7,270) (386) (1,414)
Class R3 (1,195) (2,963) (35,632) (4,670) (8,297)
Class R4 (90) (3,547) (43,123) (7,193) (7,251)
Class R5 (49) (98) (335) (77) (261)
- --------------------------------------------------------------------------------------------------------------------------------
Total distributions declared to shareholders $(175,490) $(154,936) $(465,405) $(175,147) $(93,758)
- --------------------------------------------------------------------------------------------------------------------------------
Change in net assets from fund share transactions $4,706,614 $11,377,737 $29,746,009 $19,256,176 $9,648,931
- --------------------------------------------------------------------------------------------------------------------------------
Total change in net assets $4,912,078 $12,008,230 $32,764,438 $21,498,928 $10,870,541
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------------------------------------------------------
At beginning of period 2,044,636 2,004,290 7,638,501 2,992,684 2,464,940
At end of period $6,956,714 $14,012,520 $40,402,939 $24,491,612 $13,335,481
- --------------------------------------------------------------------------------------------------------------------------------
Undistributed net investment income included in net assets
at end of period $1,412 $117,518 $179,475 $-- $3,612
- --------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS
Financial Statements
FINANCIAL HIGHLIGHTS
MFS(R) LIFETIME RETIREMENT INCOME FUND
The financial highlights table is intended to help you understand the fund's financial performance for the semiannual period and
the past 5 fiscal years (or life of a particular share class, if shorter). Certain information reflects financial results for a
single fund share. The total returns in the table represent the rate by which an investor would have earned (or lost) on an
investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
CLASS A CLASS B
-------------------------------------- -----------------------------------
SIX MONTHS YEARS ENDED 4/30 SIX MONTHS YEARS ENDED 4/30
ENDED ---------------------- ENDED --------------------
10/31/07 2007 2006(c) 10/31/07 2007 2006(c)
(UNAUDITED) (UNAUDITED)
Net asset value, beginning of period $10.36 $10.00 $10.00 $10.36 $10.00 $10.00
- -------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income (d) $0.20 $0.39 $0.24 $0.17 $0.32 $0.20
Net realized and unrealized gain (loss) on
investments 0.10 0.36 (0.02)(g) 0.10 0.37 (0.01)(g)
- -------------------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.30 $0.75 $0.22 $0.27 $0.69 $0.19
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
- -------------------------------------------------------------------------------------------------------------------------------
From net investment income $(0.20) $(0.38) $(0.22) $(0.17) $(0.32) $(0.19)
From net realized gain on investments -- (0.01) -- -- (0.01) --
- -------------------------------------------------------------------------------------------------------------------------------
Total distributions declared to shareholders $(0.20) $(0.39) $(0.22) $(0.17) $(0.33) $(0.19)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.46 $10.36 $10.00 $10.46 $10.36 $10.00
- -------------------------------------------------------------------------------------------------------------------------------
Total return (%) (r)(t) 2.96(n) 7.67 2.27(n) 2.63(n) 6.98 1.88(n)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) (TO AVERAGE NET ASSETS)
AND SUPPLEMENTAL DATA:
- -------------------------------------------------------------------------------------------------------------------------------
Expenses before expense reductions (f)(h) 1.92(a) 3.79 14.17(a) 2.52(a) 4.46 14.82(a)
Expenses after expense reductions (f)(h) 0.45(a) 0.45 0.45(a) 1.10(a) 1.10 1.10(a)
Net investment income 3.93(a) 3.79 3.87(a) 3.30(a) 3.14 3.21(a)
Portfolio turnover 50 22 14 50 22 14
Net assets at end of period (000 Omitted) $2,292 $1,954 $724 $753 $630 $367
- -------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS
Financial Highlights - continued
MFS(R) LIFETIME RETIREMENT INCOME FUND - CONTINUED
CLASS C
------------------------------------
SIX MONTHS YEARS ENDED 4/30
ENDED --------------------
10/31/07 2007 2006(c)
(UNAUDITED)
Net asset value, beginning of period $10.36 $10.00 $10.00
- ----------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
- ----------------------------------------------------------------------------------------------------------------------
Net investment income (d) $0.17 $0.31 $0.19
Net realized and unrealized gain (loss) on investments 0.11 0.38 0.00(w)
- ----------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.28 $0.69 $0.19
- ----------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
- ----------------------------------------------------------------------------------------------------------------------
From net investment income $(0.17) $(0.32) $(0.19)
From net realized gain on investments -- (0.01) --
- ----------------------------------------------------------------------------------------------------------------------
Total distributions declared to shareholders $(0.17) $(0.33) $(0.19)
- ----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.47 $10.36 $10.00
- ----------------------------------------------------------------------------------------------------------------------
Total return (%) (r)(t) 2.73(n) 6.98 1.88(n)
- ----------------------------------------------------------------------------------------------------------------------
RATIOS (%) (TO AVERAGE NET ASSETS) AND SUPPLEMENTAL DATA:
- ----------------------------------------------------------------------------------------------------------------------
Expenses before expense reductions (f)(h) 2.56(a) 4.35 14.82(a)
Expenses after expense reductions (f)(h) 1.10(a) 1.10 1.10(a)
Net investment income 3.29(a) 3.09 3.14(a)
Portfolio turnover 50 22 14
Net assets at end of period (000 Omitted) $853 $778 $379
- ----------------------------------------------------------------------------------------------------------------------
MFS(R) LIFETIME RETIREMENT INCOME FUND - CONTINUED
CLASS I
------------------------------------
SIX MONTHS YEARS ENDED 4/30
ENDED --------------------
10/31/07 2007 2006(c)
(UNAUDITED)
Net asset value, beginning of period $10.36 $10.00 $10.00
- ----------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
- ----------------------------------------------------------------------------------------------------------------------
Net investment income (d) $0.22 $0.41 $0.25
Net realized and unrealized gain (loss) on investments 0.11 0.38 (0.01)(g)
- ----------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.33 $0.79 $0.24
- ----------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
- ----------------------------------------------------------------------------------------------------------------------
From net investment income $(0.22) $(0.42) $(0.24)
From net realized gain on investments -- (0.01) --
- ----------------------------------------------------------------------------------------------------------------------
Total distributions declared to shareholders $(0.22) $(0.43) $(0.24)
- ----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.47 $10.36 $10.00
- ----------------------------------------------------------------------------------------------------------------------
Total return (%) (r) 3.24(n) 8.04 2.48(n)
- ----------------------------------------------------------------------------------------------------------------------
RATIOS (%) (TO AVERAGE NET ASSETS) AND SUPPLEMENTAL DATA:
- ----------------------------------------------------------------------------------------------------------------------
Expenses before expense reductions (f)(h) 1.52(a) 3.50 13.82(a)
Expenses after expense reductions (f)(h) 0.10(a) 0.10 0.10(a)
Net investment income 4.28(a) 4.14 4.24(a)
Portfolio turnover 50 22 14
Net assets at end of period (000 Omitted) $64 $67 $51
- ----------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS
Financial Highlights - continued
MFS(R) LIFETIME RETIREMENT INCOME FUND - CONTINUED
CLASS R1 CLASS R2
-------------------------------------- -----------------------------------
SIX MONTHS YEARS ENDED 4/30 SIX MONTHS YEARS ENDED 4/30
ENDED ---------------------- ENDED --------------------
10/31/07 2007 2006(c) 10/31/07 2007 2006(c)
(UNAUDITED) (UNAUDITED)
Net asset value, beginning of period $10.35 $10.00 $10.00 $10.36 $10.00 $10.00
- ----------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income (d) $0.16 $0.32 $0.18 $0.18 $0.32 $0.20
Net realized and unrealized gain (loss) on
investments 0.11 0.35 0.00(w) 0.10 0.39 (0.00)(g)(w)
- ----------------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.27 $0.67 $0.18 $0.28 $0.71 $0.20
- ----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
- ----------------------------------------------------------------------------------------------------------------------------
From net investment income $(0.16) $(0.31) $(0.18) $(0.18) $(0.34) $(0.20)
From net realized gain on investments -- (0.01) -- -- (0.01) --
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions declared to shareholders $(0.16) $(0.32) $(0.18) $(0.18) $(0.35) $(0.20)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.46 $10.35 $10.00 $10.46 $10.36 $10.00
- ----------------------------------------------------------------------------------------------------------------------------
Total return (%) (r) 2.68(n) 6.77 1.82(n) 2.76(n) 7.24 2.03(n)
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) (TO AVERAGE NET ASSETS)
AND SUPPLEMENTAL DATA:
- ----------------------------------------------------------------------------------------------------------------------------
Expenses before expense reductions (f)(h) 2.62(a) 4.65 15.02(a) 2.41(a) 4.17 14.72(a)
Expenses after expense reductions (f)(h) 1.20(a) 1.20 1.20(a) 0.85(a) 0.85 0.85(a)
Net investment income 3.19(a) 3.04 3.15(a) 3.55(a) 3.32 3.49(a)
Portfolio turnover 50 22 14 50 22 14
Net assets at end of period (000 Omitted) $1,157 $1,162 $127 $747 $336 $51
- ----------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS
Financial Highlights - continued
MFS(R) LIFETIME RETIREMENT INCOME FUND - CONTINUED
CLASS R3 CLASS R4
-------------------------------------- -----------------------------------
SIX MONTHS YEARS ENDED 4/30 SIX MONTHS YEARS ENDED 4/30
ENDED ---------------------- ENDED --------------------
10/31/07 2007 2006(c) 10/31/07 2007 2006(c)
(UNAUDITED) (UNAUDITED)
Net asset value, beginning of period $10.36 $10.00 $10.00 $10.35 $10.00 $10.00
- ----------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
Net investment income (d) $0.19 $0.38 $0.20 $0.22 $0.36 $0.22
Net realized and unrealized gain (loss) on
investments 0.11 0.34 0.01 0.09 0.38 (0.00)(g)(w)
- ----------------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.30 $0.72 $0.21 $0.31 $0.74 $0.22
- ----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
- ----------------------------------------------------------------------------------------------------------------------------
From net investment income $(0.19) $(0.35) $(0.21) $(0.20) $(0.38) $(0.22)
From net realized gain on investments -- (0.01) -- -- (0.01) --
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions declared to shareholders $(0.19) $(0.36) $(0.21) $(0.20) $(0.39) $(0.22)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.47 $10.36 $10.00 $10.46 $10.35 $10.00
- ----------------------------------------------------------------------------------------------------------------------------
Total return (%) (r) 2.91(n) 7.35 2.09(n) 3.04(n) 7.51 2.24(n)
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) (TO AVERAGE NET ASSETS)
AND SUPPLEMENTAL DATA:
- ----------------------------------------------------------------------------------------------------------------------------
Expenses before expense reductions (f)(h) 2.34(a) 4.23 14.57(a) 2.08(a) 3.57 14.22(a)
Expenses after expense reductions (f)(h) 0.75(a) 0.75 0.75(a) 0.50(a) 0.50 0.50(a)
Net investment income 3.61(a) 3.50 3.54(a) 3.93(a) 3.62 3.84(a)
Portfolio turnover 50 22 14 50 22 14
Net assets at end of period (000 Omitted) $3,580 $1,314 $241 $6,326 $660 $53
- ----------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS
Financial Highlights - continued
MFS(R) LIFETIME RETIREMENT INCOME FUND - CONTINUED
CLASS R5
------------------------------------
SIX MONTHS YEARS ENDED 4/30
ENDED --------------------
10/31/07 2007 2006(c)
(UNAUDITED)
Net asset value, beginning of period $10.37 $10.00 $10.00
- ----------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
- ----------------------------------------------------------------------------------------------------------------------
Net investment income (d) $0.20 $0.41 $0.24
Net realized and unrealized gain (loss) on investments 0.12 0.38 0.00(w)
- ----------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.32 $0.79 $0.24
- ----------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
- ----------------------------------------------------------------------------------------------------------------------
From net investment income $(0.22) $(0.41) $(0.24)
From net realized gain on investments -- (0.01) --
- ----------------------------------------------------------------------------------------------------------------------
Total distributions declared to shareholders $(0.22) $(0.42) $(0.24)
- ----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.47 $10.37 $10.00
- ----------------------------------------------------------------------------------------------------------------------
Total return (%) (r) 3.09(n) 8.04 2.42(n)
- ----------------------------------------------------------------------------------------------------------------------
RATIOS (%) (TO AVERAGE NET ASSETS)
AND SUPPLEMENTAL DATA:
- ----------------------------------------------------------------------------------------------------------------------
Expenses before expense reductions (f)(h) 1.86(a) 3.58 13.92(a)
Expenses after expense reductions (f)(h) 0.20(a) 0.20 0.20(a)
Net investment income 4.18(a) 4.04 4.14(a)
Portfolio turnover 50 22 14
Net assets at end of period (000 Omitted) $199 $55 $51
- ----------------------------------------------------------------------------------------------------------------------
(a) Annualized.
(c) For the period from the commencement of the fund's investment operations, September 29, 2005, through the stated
period end.
(d) Per share data are based on average shares outstanding.
(f) Ratios do not reflect reductions from fees paid indirectly.
(g) The per share amount is not in accordance with the net realized and unrealized gain/loss for the period because of
the timing of sales of fund shares and the per share amount of realized and unrealized gains and losses at such
time.
(h) In addition to the fees and expenses which the fund bears directly, the fund indirectly bears a pro rata share of
the fees and expenses of the underlying funds in which the fund invests. Because the underlying funds have varied
expense and fee levels and the fund may own different proportions of the underlying funds at different times, the
amount of fees and expenses incurred directly by the fund will vary.
(n) Not annualized.
(r) Certain expenses have been reduced without which performance would have been lower.
(t) Total returns do not include any applicable sales charges.
(w) Per share amount was less than $0.01.
SEE NOTES TO FINANCIAL STATEMENTS
Financial Highlights - continued
MFS(R) LIFETIME 2010 FUND
The financial highlights table is intended to help you understand the fund's financial performance for the semiannual period
and the past 5 fiscal years (or life of a particular share class, if shorter). Certain information reflects financial results
for a single fund share. The total returns in the table represent the rate by which an investor would have earned (or lost)
on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
CLASS A CLASS B
-------------------------------------- -----------------------------------
SIX MONTHS YEARS ENDED 4/30 SIX MONTHS YEARS ENDED 4/30
ENDED ---------------------- ENDED --------------------
10/31/07 2007 2006(c) 10/31/07 2007 2006(c)
(UNAUDITED) (UNAUDITED)
Net asset value, beginning of period $11.08 $10.39 $10.00 $11.02 $10.37 $10.00
- -------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income (d) $0.18 $0.35 $0.18 $0.15 $0.28 $0.14
Net realized and unrealized gain (loss) on
investments 0.26 0.56 0.29 0.25 0.54 0.29
- -------------------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.44 $0.91 $0.47 $0.40 $0.82 $0.43
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
- -------------------------------------------------------------------------------------------------------------------------------
From net investment income $-- $(0.20) $(0.08) $-- $(0.15) $(0.06)
From net realized gain on investments -- (0.02) -- -- (0.02) --
- -------------------------------------------------------------------------------------------------------------------------------
Total distributions declared to shareholders $-- $(0.22) $(0.08) $-- $(0.17) $(0.06)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.52 $11.08 $10.39 $11.42 $11.02 $10.37
- -------------------------------------------------------------------------------------------------------------------------------
Total return (%) (r)(t) 3.97(n) 8.80 4.67(n) 3.63(n) 7.99 4.32(n)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) (TO AVERAGE NET ASSETS)
AND SUPPLEMENTAL DATA:
- -------------------------------------------------------------------------------------------------------------------------------
Expenses before expense reductions (f)(h) 1.48(a) 2.63 13.57(a) 2.14(a) 3.41 14.22(a)
Expenses after expense reductions (f)(h) 0.45(a) 0.45 0.45(a) 1.10(a) 1.10 1.10(a)
Net investment income 3.26(a) 3.25 2.96(a) 2.61(a) 2.59 2.32(a)
Portfolio turnover 11 27 3 11 27 3
Net assets at end of period (000 Omitted) $3,548 $3,058 $468 $793 $677 $138
- -------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS
Financial Highlights - continued
MFS(R) LIFETIME 2010 FUND - CONTINUED
CLASS C
------------------------------------
SIX MONTHS YEARS ENDED 4/30
ENDED --------------------
10/31/07 2007 2006(c)
(UNAUDITED)
Net asset value, beginning of period $11.02 $10.37 $10.00
- ---------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
- ---------------------------------------------------------------------------------------------------------------------
Net investment income (d) $0.15 $0.27 $0.14
Net realized and unrealized gain (loss) on investments 0.25 0.56 0.29
- ---------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.40 $0.83 $0.43
- ---------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
- ---------------------------------------------------------------------------------------------------------------------
From net investment income $-- $(0.16) $(0.06)
From net realized gain on investments -- (0.02) --
- ---------------------------------------------------------------------------------------------------------------------
Total distributions declared to shareholders $-- $(0.18) $(0.06)
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.42 $11.02 $10.37
- ---------------------------------------------------------------------------------------------------------------------
Total return (%) (r)(t) 3.63(n) 8.01 4.28(n)
- ---------------------------------------------------------------------------------------------------------------------
RATIOS (%) (TO AVERAGE NET ASSETS) AND SUPPLEMENTAL DATA:
- ---------------------------------------------------------------------------------------------------------------------
Expenses before expense reductions (f)(h) 2.21(a) 3.41 14.22(a)
Expenses after expense reductions (f)(h) 1.10(a) 1.10 1.10(a)
Net investment income 2.61(a) 2.60 2.33(a)
Portfolio turnover 11 27 3
Net assets at end of period (000 Omitted) $823 $522 $96
- ---------------------------------------------------------------------------------------------------------------------
MFS(R) LIFETIME 2010 FUND - CONTINUED
CLASS I
------------------------------------
SIX MONTHS YEARS ENDED 4/30
ENDED --------------------
10/31/07 2007 2006(c)
(UNAUDITED)
Net asset value, beginning of period $11.11 $10.41 $10.00
- ---------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
- ---------------------------------------------------------------------------------------------------------------------
Net investment income (d) $0.20 $0.36 $0.22
Net realized and unrealized gain (loss) on investments 0.26 0.57 0.27
- ---------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.46 $0.93 $0.49
- ---------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
- ---------------------------------------------------------------------------------------------------------------------
From net investment income $-- $(0.21) $(0.08)
From net realized gain on investments -- (0.02) --
- ---------------------------------------------------------------------------------------------------------------------
Total distributions declared to shareholders $-- $(0.23) $(0.08)
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.57 $11.11 $10.41
- ---------------------------------------------------------------------------------------------------------------------
Total return (%) (r) 4.14(n) 9.05 4.94(n)
- ---------------------------------------------------------------------------------------------------------------------
RATIOS (%) (TO AVERAGE NET ASSETS) AND SUPPLEMENTAL DATA:
- ---------------------------------------------------------------------------------------------------------------------
Expenses before expense reductions (f)(h) 1.12(a) 2.63 13.22(a)
Expenses after expense reductions (f)(h) 0.10(a) 0.10 0.10(a)
Net investment income 3.61(a) 3.53 3.26(a)
Portfolio turnover 11 27 3
Net assets at end of period (000 Omitted) $571 $546 $264
- ---------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS
Financial Highlights - continued
MFS(R) LIFETIME 2010 FUND - CONTINUED
CLASS R1 CLASS R2
-------------------------------------- -----------------------------------
SIX MONTHS YEARS ENDED 4/30 SIX MONTHS YEARS ENDED 4/30
ENDED ---------------------- ENDED --------------------
10/31/07 2007 2006(c) 10/31/07 2007 2006(c)
(UNAUDITED) (UNAUDITED)
Net asset value, beginning of period $10.99 $10.37 $10.00 $11.03 $10.38 $10.00
- -------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income (d) $0.14 $0.26 $0.13 $0.16 $0.30 $0.15
Net realized and unrealized gain (loss) on
investments 0.25 0.55 0.29 0.26 0.55 0.29
- -------------------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.39 $0.81 $0.42 $0.42 $0.85 $0.44
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
- -------------------------------------------------------------------------------------------------------------------------------
From net investment income $-- $(0.17) $(0.05) $-- $(0.18) $(0.06)
From net realized gain on investments -- (0.02) -- -- (0.02) --
- -------------------------------------------------------------------------------------------------------------------------------
Total distributions declared to shareholders $-- $(0.19) $(0.05) $-- $(0.20) $(0.06)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.38 $10.99 $10.37 $11.45 $11.03 $10.38
- -------------------------------------------------------------------------------------------------------------------------------
Total return (%) (r) 3.55(n) 7.84 4.26(n) 3.81(n) 8.22 4.45(n)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) (TO AVERAGE NET ASSETS)
AND SUPPLEMENTAL DATA:
- -------------------------------------------------------------------------------------------------------------------------------
Expenses before expense reductions (f)(h) 2.27(a) 3.39 14.42(a) 2.02(a) 3.08 14.12(a)
Expenses after expense reductions (f)(h) 1.20(a) 1.20 1.20(a) 0.85(a) 0.85 0.85(a)
Net investment income 2.51(a) 2.53 2.21(a) 2.88(a) 2.82 2.58(a)
Portfolio turnover 11 27 3 11 27 3
Net assets at end of period (000 Omitted) $1,101 $829 $86 $1,518 $846 $90
- -------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS
Financial Highlights - continued
MFS(R) LIFETIME 2010 FUND - CONTINUED
CLASS R3 CLASS R4
-------------------------------------- -----------------------------------
SIX MONTHS YEARS ENDED 4/30 SIX MONTHS YEARS ENDED 4/30
ENDED ---------------------- ENDED --------------------
10/31/07 2007 2006(c) 10/31/07 2007 2006(c)
(UNAUDITED) (UNAUDITED)
Net asset value, beginning of period $11.04 $10.38 $10.00 $11.07 $10.39 $10.00
- -------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income (d) $0.17 $0.32 $0.14 $0.18 $0.35 $0.22
Net realized and unrealized gain (loss) on
investments 0.25 0.54 0.31 0.25 0.54 0.25
- -------------------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.42 $0.86 $0.45 $0.43 $0.89 $0.47
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
- -------------------------------------------------------------------------------------------------------------------------------
From net investment income $-- $(0.18) $(0.07) $-- $(0.19) $(0.08)
From net realized gain on investments -- (0.02) -- -- (0.02) --
- -------------------------------------------------------------------------------------------------------------------------------
Total distributions declared to shareholders $-- $(0.20) $(0.07) $-- $(0.21) $(0.08)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.46 $11.04 $10.38 $11.50 $11.07 $10.39
- -------------------------------------------------------------------------------------------------------------------------------
Total return (%) (r) 3.80(n) 8.36 4.47(n) 3.88(n) 8.67 4.71(n)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) (TO AVERAGE NET ASSETS)
AND SUPPLEMENTAL DATA:
- -------------------------------------------------------------------------------------------------------------------------------
Expenses before expense reductions (f)(h) 1.99(a) 3.03 13.97(a) 1.54(a) 2.47 13.62(a)
Expenses after expense reductions (f)(h) 0.75(a) 0.75 0.75(a) 0.50(a) 0.50 0.50(a)
Net investment income 2.99(a) 2.94 2.71(a) 3.21(a) 3.14 3.08(a)
Portfolio turnover 11 27 3 11 27 3
Net assets at end of period (000 Omitted) $6,611 $2,794 $261 $5,847 $4,685 $549
- -------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS
Financial Highlights - continued
MFS(R) LIFETIME 2010 FUND - CONTINUED
CLASS R5
------------------------------------
SIX MONTHS YEARS ENDED 4/30
ENDED --------------------
10/31/07 2007 2006(c)
(UNAUDITED)
Net asset value, beginning of period $11.11 $10.40 $10.00
- ---------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
- ---------------------------------------------------------------------------------------------------------------------
Net investment income (d) $0.18 $0.37 $0.19
Net realized and unrealized gain (loss) on investments 0.27 0.57 0.29
- ---------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.45 $0.94 $0.48
- ---------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
- ---------------------------------------------------------------------------------------------------------------------
From net investment income $-- $(0.21) $(0.08)
From net realized gain on investments -- (0.02) --
- ---------------------------------------------------------------------------------------------------------------------
Total distributions declared to shareholders $-- $(0.23) $(0.08)
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.56 $11.11 $10.40
- ---------------------------------------------------------------------------------------------------------------------
Total return (%) (r) 4.05(n) 9.06 4.81(n)
- ---------------------------------------------------------------------------------------------------------------------
RATIOS (%) (TO AVERAGE NET ASSETS)
AND SUPPLEMENTAL DATA:
- ---------------------------------------------------------------------------------------------------------------------
Expenses before expense reductions (f)(h) 1.78(a) 2.80 13.32(a)
Expenses after expense reductions (f)(h) 0.20(a) 0.20 0.20(a)
Net investment income 3.59(a) 3.46 3.22(a)
Portfolio turnover 11 27 3
Net assets at end of period (000 Omitted) $503 $57 $52
- ---------------------------------------------------------------------------------------------------------------------
(a) Annualized.
(c) For the period from the commencement of the fund's investment operations, September 29, 2005, through the stated period end.
(d) Per share data are based on average shares outstanding.
(f) Ratios do not reflect reductions from fees paid indirectly.
(h) In addition to the fees and expenses which the fund bears directly, the fund indirectly bears a pro rata share of
the fees and expenses of the underlying funds in which the fund invests. Because the underlying funds have varied
expense and fee levels and the fund may own different proportions of the underlying funds at different times, the
amount of fees and expenses incurred directly by the fund will vary.
(n) Not annualized.
(r) Certain expenses have been reduced without which performance would have been lower.
(t) Total returns do not include any applicable sales charges.
SEE NOTES TO FINANCIAL STATEMENTS
MFS(R) LIFETIME 2020 FUND
The financial highlights table is intended to help you understand the fund's financial performance for the semiannual period
and the past 5 fiscal years (or life of a particular share class, if shorter). Certain information reflects financial results
for a single fund share. The total returns in the table represent the rate by which an investor would have earned (or lost) on
an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
CLASS A CLASS B
-------------------------------------- --------------------------------------
SIX MONTHS YEARS ENDED 4/30 SIX MONTHS YEARS ENDED 4/30
ENDED ---------------------- ENDED -----------------------
10/31/07 2007 2006(c) 10/31/07 2007 2006(c)
(UNAUDITED) (UNAUDITED)
Net asset value, beginning of period $11.85 $10.85 $10.00 $11.79 $10.82 $10.00
- -------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income (d) $0.08 $0.18 $0.08 $0.04 $0.11 $0.06
Net realized and unrealized gain (loss) on
investments 0.61 1.03 0.92 0.60 1.02 0.90
- -------------------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.69 $1.21 $1.00 $0.64 $1.13 $0.96
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
- -------------------------------------------------------------------------------------------------------------------------------
From net investment income $-- $(0.15) $(0.15) $-- $(0.10) $(0.14)
From net realized gain on investments -- (0.06) -- -- (0.06) --
- -------------------------------------------------------------------------------------------------------------------------------
Total distributions declared to shareholders $-- $(0.21) $(0.15) $-- $(0.16) $(0.14)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.54 $11.85 $10.85 $12.43 $11.79 $10.82
- -------------------------------------------------------------------------------------------------------------------------------
Total return (%) (r)(t) 5.82(n) 11.26 10.14(n) 5.43(n) 10.57 9.71(n)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) (TO AVERAGE NET ASSETS)
AND SUPPLEMENTAL DATA:
- -------------------------------------------------------------------------------------------------------------------------------
Expenses before expense reductions (f)(h) 0.80(a) 1.26 5.30(a) 1.46(a) 1.92 5.95(a)
Expenses after expense reductions (f)(h) 0.45(a) 0.45 0.45(a) 1.10(a) 1.10 1.10(a)
Net investment income 1.38(a) 1.63 1.34(a) 0.73(a) 1.01 0.84(a)
Portfolio turnover 9 7 4 9 7 4
Net assets at end of period (000 Omitted) $8,630 $8,188 $2,718 $4,175 $3,428 $1,009
- -------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS
Financial Highlights - continued
MFS(R) LIFETIME 2020 FUND - CONTINUED
CLASS C
------------------------------------
SIX MONTHS YEARS ENDED 4/30
ENDED --------------------
10/31/07 2007 2006(c)
(UNAUDITED)
Net asset value, beginning of period $11.78 $10.83 $10.00
- ---------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
- ---------------------------------------------------------------------------------------------------------------------
Net investment income (d) $0.04 $0.12 $0.06
Net realized and unrealized gain (loss) on investments 0.59 1.01 0.91
- ---------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.63 $1.13 $0.97
- ---------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
- ---------------------------------------------------------------------------------------------------------------------
From net investment income $-- $(0.12) $(0.14)
From net realized gain on investments -- (0.06) --
- ---------------------------------------------------------------------------------------------------------------------
Total distributions declared to shareholders $-- $(0.18) $(0.14)
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.41 $11.78 $10.83
- ---------------------------------------------------------------------------------------------------------------------
Total return (%) (r)(t) 5.35(n) 10.58 9.79(n)
- ---------------------------------------------------------------------------------------------------------------------
RATIOS (%) (TO AVERAGE NET ASSETS) AND SUPPLEMENTAL DATA:
- ---------------------------------------------------------------------------------------------------------------------
Expenses before expense reductions (f)(h) 1.48(a) 1.86 5.95(a)
Expenses after expense reductions (f)(h) 1.10(a) 1.10 1.10(a)
Net investment income 0.73(a) 1.07 0.96(a)
Portfolio turnover 9 7 4
Net assets at end of period (000 Omitted) $1,881 $1,148 $143
- ---------------------------------------------------------------------------------------------------------------------
Financial Highlights - continued
MFS(R) LIFETIME 2020 FUND - CONTINUED
CLASS I
------------------------------------
SIX MONTHS YEARS ENDED 4/30
ENDED --------------------
10/31/07 2007 2006(c)
(UNAUDITED)
Net asset value, beginning of period $11.90 $10.87 $10.00
- ---------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
- ---------------------------------------------------------------------------------------------------------------------
Net investment income (d) $0.11 $0.22 $0.10
Net realized and unrealized gain (loss) on investments 0.59 1.04 0.93
- ---------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.70 $1.26 $1.03
- ---------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
- ---------------------------------------------------------------------------------------------------------------------
From net investment income $-- $(0.17) $(0.16)
From net realized gain on investments -- (0.06) --
- ---------------------------------------------------------------------------------------------------------------------
Total distributions declared to shareholders $-- $(0.23) $(0.16)
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.60 $11.90 $10.87
- ---------------------------------------------------------------------------------------------------------------------
Total return (%) (r) 5.88(n) 11.71 10.38(n)
- ---------------------------------------------------------------------------------------------------------------------
RATIOS (%) (TO AVERAGE NET ASSETS) AND SUPPLEMENTAL DATA:
- ---------------------------------------------------------------------------------------------------------------------
Expenses before expense reductions (f)(h) 0.49(a) 0.96 4.95(a)
Expenses after expense reductions (f)(h) 0.10(a) 0.10 0.10(a)
Net investment income 1.74(a) 1.97 1.60(a)
Portfolio turnover 9 7 4
Net assets at end of period (000 Omitted) $981 $613 $324
- ---------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS
Financial Highlights - continued
MFS(R) LIFETIME 2020 FUND - CONTINUED
CLASS R1 CLASS R2
-------------------------------------- -----------------------------------
SIX MONTHS YEARS ENDED 4/30 SIX MONTHS YEARS ENDED 4/30
ENDED ---------------------- ENDED --------------------
10/31/07 2007 2006(c) 10/31/07 2007 2006(c)
(UNAUDITED) (UNAUDITED)
Net asset value, beginning of period $11.78 $10.83 $10.00 $11.81 $10.85 $10.00
- -------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income (d) $0.04 $0.10 $0.04 $0.06 $0.14 $0.07
Net realized and unrealized gain (loss) on
investments 0.60 1.02 0.92 0.59 1.02 0.92
- -------------------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.64 $1.12 $0.96 $0.65 $1.16 $0.99
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
- -------------------------------------------------------------------------------------------------------------------------------
From net investment income $-- $(0.11) $(0.13) $-- $(0.14) $(0.14)
From net realized gain on investments -- (0.06) -- -- (0.06) --
- -------------------------------------------------------------------------------------------------------------------------------
Total distributions declared to shareholders $-- $(0.17) $(0.13) $-- $(0.20) $(0.14)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.42 $11.78 $10.83 $12.46 $11.81 $10.85
- -------------------------------------------------------------------------------------------------------------------------------
Total return (%) (r) 5.43(n) 10.41 9.68(n) 5.50(n) 10.79 9.97(n)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) (TO AVERAGE NET ASSETS)
AND SUPPLEMENTAL DATA:
- -------------------------------------------------------------------------------------------------------------------------------
Expenses before expense reductions (f)(h) 1.59(a) 2.08 6.14(a) 1.25(a) 1.70 5.85(a)
Expenses after expense reductions (f)(h) 1.20(a) 1.20 1.20(a) 0.85(a) 0.85 0.85(a)
Net investment income 0.64(a) 0.90 0.58(a) 1.00(a) 1.25 1.19(a)
Portfolio turnover 9 7 4 9 7 4
Net assets at end of period (000 Omitted) $4,426 $2,549 $549 $5,332 $2,596 $90
- -------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS
Financial Highlights - continued
MFS(R) LIFETIME 2020 FUND - CONTINUED
CLASS R3 CLASS R4
-------------------------------------- -----------------------------------
SIX MONTHS YEARS ENDED 4/30 SIX MONTHS YEARS ENDED 4/30
ENDED ---------------------- ENDED --------------------
10/31/07 2007 2006(c) 10/31/07 2007 2006(c)
(UNAUDITED) (UNAUDITED)
Net asset value, beginning of period $11.83 $10.84 $10.00 $11.85 $10.86 $10.00
- -------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income (d) $0.07 $0.15 $0.08 $0.08 $0.19 $0.12
Net realized and unrealized gain (loss) on
investments 0.59 1.03 0.91 0.60 1.01 0.89
- -------------------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.66 $1.18 $0.99 $0.68 $1.20 $1.01
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
- -------------------------------------------------------------------------------------------------------------------------------
From net investment income $-- $(0.13) $(0.15) $-- $(0.15) $(0.15)
From net realized gain on investments -- (0.06) -- -- (0.06) --
- -------------------------------------------------------------------------------------------------------------------------------
Total distributions declared to shareholders $-- $(0.19) $(0.15) $-- $(0.21) $(0.15)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.49 $11.83 $10.84 $12.53 $11.85 $10.86
- -------------------------------------------------------------------------------------------------------------------------------
Total return (%) (r) 5.58(n) 11.03 9.99(n) 5.74(n) 11.15 10.24(n)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) (TO AVERAGE NET ASSETS)
AND SUPPLEMENTAL DATA:
- -------------------------------------------------------------------------------------------------------------------------------
Expenses before expense reductions (f)(h) 1.13(a) 1.62 5.69(a) 0.86(a) 1.26 5.35(a)
Expenses after expense reductions (f)(h) 0.75(a) 0.75 0.75(a) 0.50(a) 0.50 0.50(a)
Net investment income 1.09(a) 1.36 1.28(a) 1.33(a) 1.67 1.63(a)
Portfolio turnover 9 7 4 9 7 4
Net assets at end of period (000 Omitted) $16,337 $10,494 $1,271 $16,088 $11,326 $1,480
- -------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS
Financial Highlights - continued
MFS(R) LIFETIME 2020 FUND - CONTINUED
CLASS R5
------------------------------------
SIX MONTHS YEARS ENDED 4/30
ENDED --------------------
10/31/07 2007 2006(c)
(UNAUDITED)
Net asset value, beginning of period $11.90 $10.87 $10.00
- ---------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
- ---------------------------------------------------------------------------------------------------------------------
Net investment income (d) $0.09 $0.21 $0.11
Net realized and unrealized gain (loss) on investments 0.60 1.04 0.91
- ---------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.69 $1.25 $1.02
- ---------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
- ---------------------------------------------------------------------------------------------------------------------
From net investment income $-- $(0.16) $(0.15)
From net realized gain on investments -- (0.06) --
- ---------------------------------------------------------------------------------------------------------------------
Total distributions declared to shareholders $-- $(0.22) $(0.15)
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.59 $11.90 $10.87
- ---------------------------------------------------------------------------------------------------------------------
Total return (%) (r) 5.80(n) 11.61 10.35(n)
- ---------------------------------------------------------------------------------------------------------------------
RATIOS (%) (TO AVERAGE NET ASSETS)
AND SUPPLEMENTAL DATA:
- ---------------------------------------------------------------------------------------------------------------------
Expenses before expense reductions (f)(h) 0.78(a) 1.09 5.05(a)
Expenses after expense reductions (f)(h) 0.20(a) 0.20 0.20(a)
Net investment income 1.72(a) 1.88 1.87(a)
Portfolio turnover 9 7 4
Net assets at end of period (000 Omitted) $1,865 $62 $55
- ---------------------------------------------------------------------------------------------------------------------
(a) Annualized.
(c) For the period from the commencement of the fund's investment operations, September 29, 2005, through the stated period end.
(d) Per share data are based on average shares outstanding.
(f) Ratios do not reflect reductions from fees paid indirectly.
(h) In addition to the fees and expenses which the fund bears directly, the fund indirectly bears a pro rata share of
the fees and expenses of the underlying funds in which the fund invests. Because the underlying funds have varied
expense and fee levels and the fund may own different proportions of the underlying funds at different times, the
amount of fees and expenses incurred directly by the fund will vary.
(n) Not annualized.
(r) Certain expenses have been reduced without which performance would have been lower.
(t) Total returns do not include any applicable sales charges.
SEE NOTES TO FINANCIAL STATEMENTS
Financial Highlights - continued
MFS(R) LIFETIME 2030 FUND
The financial highlights table is intended to help you understand the fund's financial performance for the semiannual period
and the past 5 fiscal years (or life of a particular share class, if shorter). Certain information reflects financial results
for a single fund share. The total returns in the table represent the rate by which an investor would have earned (or lost)
on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
CLASS A CLASS B
-------------------------------------- -----------------------------------
SIX MONTHS YEARS ENDED 4/30 SIX MONTHS YEARS ENDED 4/30
ENDED ---------------------- ENDED --------------------
10/31/07 2007 2006(c) 10/31/07 2007 2006(c)
(UNAUDITED) (UNAUDITED)
Net asset value, beginning of period $12.24 $11.10 $10.00 $12.17 $11.07 $10.00
- -------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income loss (d) $0.00(w) $0.07 $0.01 $(0.04) $(0.00)(w) $(0.03)
Net realized and unrealized gain (loss) on
investments 0.80 1.20 1.25 0.80 1.19 1.25
- -------------------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.80 $1.27 $1.26 $0.76 $1.19 $1.22
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
- -------------------------------------------------------------------------------------------------------------------------------
From net investment income $-- $(0.12) $(0.16) $-- $(0.08) $(0.15)
From net realized gain on investments -- (0.01) -- -- (0.01) --
- -------------------------------------------------------------------------------------------------------------------------------
Total distributions declared to shareholders $-- $(0.13) $(0.16) $-- $(0.09) $(0.15)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $13.04 $12.24 $11.10 $12.93 $12.17 $11.07
- -------------------------------------------------------------------------------------------------------------------------------
Total return (%) (r)(t) 6.54(n) 11.57 12.73(n) 6.24(n) 10.80 12.36(n)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) (TO AVERAGE NET ASSETS)
AND SUPPLEMENTAL DATA:
- -------------------------------------------------------------------------------------------------------------------------------
Expenses before expense reductions (f)(h) 0.97(a) 1.84 11.40(a) 1.65(a) 2.54 12.05(a)
Expenses after expense reductions (f)(h) 0.45(a) 0.45 0.45(a) 1.10(a) 1.10 1.10(a)
Net investment income (loss) 0.04(a) 0.63 0.20(a) (0.60)(a) (0.04) (0.41)(a)
Portfolio turnover 6 17 4 6 17 4
Net assets at end of period (000 Omitted) $5,077 $4,758 $686 $1,895 $1,269 $382
- -------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS
Financial Highlights - continued
MFS(R) LIFETIME 2030 FUND - CONTINUED
CLASS C
------------------------------------
SIX MONTHS YEARS ENDED 4/30
ENDED --------------------
10/31/07 2007 2006(c)
(UNAUDITED)
Net asset value, beginning of period $12.20 $11.08 $10.00
- ---------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
- ---------------------------------------------------------------------------------------------------------------------
Net investment loss (d) $(0.04) $(0.02) $(0.01)
Net realized and unrealized gain (loss) on investments 0.80 1.20 1.24
- ---------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.76 $1.18 $1.23
- ---------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
- ---------------------------------------------------------------------------------------------------------------------
From net investment income $-- $(0.05) $(0.15)
From net realized gain on investments -- (0.01) --
- ---------------------------------------------------------------------------------------------------------------------
Total distributions declared to shareholders $-- $(0.06) $(0.15)
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.96 $12.20 $11.08
- ---------------------------------------------------------------------------------------------------------------------
Total return (%) (r)(t) 6.23(n) 10.72 12.39(n)
- ---------------------------------------------------------------------------------------------------------------------
RATIOS (%) (TO AVERAGE NET ASSETS) AND SUPPLEMENTAL DATA:
- ---------------------------------------------------------------------------------------------------------------------
Expenses before expense reductions (f)(h) 1.64(a) 2.61 12.05(a)
Expenses after expense reductions (f)(h) 1.10(a) 1.10 1.10(a)
Net investment loss (0.61)(a) (0.16) (0.13)(a)
Portfolio turnover 6 17 4
Net assets at end of period (000 Omitted) $625 $450 $114
- ---------------------------------------------------------------------------------------------------------------------
CLASS I
------------------------------------
SIX MONTHS YEARS ENDED 4/30
ENDED --------------------
10/31/07 2007 2006(c)
(UNAUDITED)
Net asset value, beginning of period $12.29 $11.12 $10.00
- ---------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
- ---------------------------------------------------------------------------------------------------------------------
Net investment income (d) $0.03 $0.10 $0.04
Net realized and unrealized gain (loss) on investments 0.79 1.22 1.25
- ---------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.82 $1.32 $1.29
- ---------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
- ---------------------------------------------------------------------------------------------------------------------
From net investment income $-- $(0.14) $(0.17)
From net realized gain on investments -- (0.01) --
- ---------------------------------------------------------------------------------------------------------------------
Total distributions declared to shareholders $-- $(0.15) $(0.17)
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $13.11 $12.29 $11.12
- ---------------------------------------------------------------------------------------------------------------------
Total return (%) (r) 6.67(n) 11.99 12.99(n)
- ---------------------------------------------------------------------------------------------------------------------
RATIOS (%) (TO AVERAGE NET ASSETS) AND SUPPLEMENTAL DATA:
- ---------------------------------------------------------------------------------------------------------------------
Expenses before expense reductions (f)(h) 0.59(a) 1.62 11.05(a)
Expenses after expense reductions (f)(h) 0.10(a) 0.10 0.10(a)
Net investment income 0.41(a) 0.91 0.67(a)
Portfolio turnover 6 17 4
Net assets at end of period (000 Omitted) $1,024 $1,314 $701
- ---------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS
Financial Highlights - continued
MFS(R) LIFETIME 2030 FUND - CONTINUED
CLASS R1 CLASS R2
-------------------------------------- -----------------------------------
SIX MONTHS YEARS ENDED 4/30 SIX MONTHS YEARS ENDED 4/30
ENDED ---------------------- ENDED --------------------
10/31/07 2007 2006(c) 10/31/07 2007 2006(c)
(UNAUDITED) (UNAUDITED)
Net asset value, beginning of period $12.17 $11.08 $10.00 $12.22 $11.09 $10.00
- -------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (d) $(0.04) $(0.02) $(0.03) $(0.02) $0.00(w) $0.00(w)
Net realized and unrealized gain (loss) on
investments 0.78 1.20 1.25 0.79 1.23 1.24
- -------------------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.74 $1.18 $1.22 $0.77 $1.23 $1.24
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
- -------------------------------------------------------------------------------------------------------------------------------
From net investment income $-- $(0.08) $(0.14) $-- $(0.09) $(0.15)
From net realized gain on investments -- (0.01) -- -- (0.01) --
- -------------------------------------------------------------------------------------------------------------------------------
Total distributions declared to shareholders $-- $(0.09) $(0.14) $-- $(0.10) $(0.15)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.91 $12.17 $11.08 $12.99 $12.22 $11.09
- -------------------------------------------------------------------------------------------------------------------------------
Total return (%) (r) 6.08(n) 10.72 12.29(n) 6.30(n) 11.17 12.49(n)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) (TO AVERAGE NET ASSETS)
AND SUPPLEMENTAL DATA:
- -------------------------------------------------------------------------------------------------------------------------------
Expenses before expense reductions (f)(h) 1.79(a) 2.69 12.25(a) 1.50(a) 2.29 11.95(a)
Expenses after expense reductions (f)(h) 1.20(a) 1.20 1.20(a) 0.85(a) 0.85 0.85(a)
Net investment income (loss) (0.69)(a) (0.14) (0.49)(a) (0.35)(a) 0.03 0.05(a)
Portfolio turnover 6 17 4 6 17 4
Net assets at end of period (000 Omitted) $2,829 $1,330 $306 $3,738 $1,131 $62
- -------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS
Financial Highlights - continued
MFS(R) LIFETIME 2030 FUND - CONTINUED
CLASS R3 CLASS R4
-------------------------------------- -----------------------------------
SIX MONTHS YEARS ENDED 4/30 SIX MONTHS YEARS ENDED 4/30
ENDED ---------------------- ENDED --------------------
10/31/07 2007 2006(c) 10/31/07 2007 2006(c)
(UNAUDITED) (UNAUDITED)
Net asset value, beginning of period $12.20 $11.09 $10.00 $12.23 $11.10 $10.00
- -------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss)(d) $(0.01) $0.04 $0.01 $0.00(w) $0.08 $0.02
Net realized and unrealized gain (loss) on
investments 0.79 1.19 1.23 0.79 1.18 1.24
- -------------------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.78 $1.23 $1.24 $0.79 $1.26 $1.26
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
- -------------------------------------------------------------------------------------------------------------------------------
From net investment income $-- $(0.11) $(0.15) $-- $(0.12) $(0.16)
From net realized gain on investments -- (0.01) -- -- (0.01) --
- -------------------------------------------------------------------------------------------------------------------------------
otal distributions declared to shareholders $-- $(0.12) $(0.15) $-- $(0.13) $(0.16)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.98 $12.20 $11.09 $13.02 $12.23 $11.10
- -------------------------------------------------------------------------------------------------------------------------------
Total return (%) (r) 6.39(n) 11.18 12.56(n) 6.46(n) 11.49 12.72(n)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) (TO AVERAGE NET ASSETS)
AND SUPPLEMENTAL DATA:
- -------------------------------------------------------------------------------------------------------------------------------
Expenses before expense reductions (f)(h) 1.35(a) 2.21 11.80(a) 1.04(a) 1.79 11.45(a)
Expenses after expense reductions (f)(h) 0.75(a) 0.75 0.75(a) 0.50(a) 0.50 0.50(a)
Net investment income (loss) (0.24)(a) 0.35 0.10(a) (0.00)(a)(w) 0.69 0.33(a)
Portfolio turnover 6 17 4 6 17 4
Net assets at end of period (000 Omitted) $13,102 $5,980 $331 $11,228 $8,198 $354
- -------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS
Financial Highlights - continued
MFS(R) LIFETIME 2030 FUND - CONTINUED
CLASS R5
------------------------------------
SIX MONTHS YEARS ENDED 4/30
ENDED --------------------
10/31/07 2007 2006(c)
(UNAUDITED)
Net asset value, beginning of period $12.28 $11.12 $10.00
- ---------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
- ---------------------------------------------------------------------------------------------------------------------
Net investment income (d) $0.02 $0.09 $0.04
Net realized and unrealized gain (loss) on investments 0.79 1.21 1.24
- ---------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.81 $1.30 $1.28
- ---------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
- ---------------------------------------------------------------------------------------------------------------------
From net investment income $-- $(0.13) $(0.16)
From net realized gain on investments -- (0.01) --
- ---------------------------------------------------------------------------------------------------------------------
Total distributions declared to shareholders $-- $(0.14) $(0.16)
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $13.09 $12.28 $11.12
- ---------------------------------------------------------------------------------------------------------------------
Total return (%) (r) 6.60(n) 11.80 12.97(n)
- ---------------------------------------------------------------------------------------------------------------------
RATIOS (%) (TO AVERAGE NET ASSETS)
AND SUPPLEMENTAL DATA:
- ---------------------------------------------------------------------------------------------------------------------
Expenses before expense reductions (f)(h) 1.00(a) 1.78 11.15(a)
Expenses after expense reductions (f)(h) 0.20(a) 0.20 0.20(a)
Net investment income 0.36(a) 0.85 0.71(a)
Portfolio turnover 6 17 4
Net assets at end of period (000 Omitted) $1,754 $63 $56
- ---------------------------------------------------------------------------------------------------------------------
(a) Annualized.
(c) For the period from the commencement of the fund's investment operations, September 29, 2005, through the stated period end.
(d) Per share data are based on average shares outstanding.
(f) Ratios do not reflect reductions from fees paid indirectly.
(h) In addition to the fees and expenses which the fund bears directly, the fund indirectly bears a pro rata share of
the fees and expenses of the underlying funds in which the fund invests. Because the underlying funds have varied
expense and fee levels and the fund may own different proportions of the underlying funds at different times, the
amount of fees and expenses incurred directly by the fund will vary.
(n) Not annualized.
(r) Certain expenses have been reduced without which performance would have been lower.
(t) Total returns do not include any applicable sales charges.
(w) Per share amount was less than $0.01.
SEE NOTES TO FINANCIAL STATEMENTS
Financial Highlights - continued
MFS(R) LIFETIME 2040 FUND
The financial highlights table is intended to help you understand the fund's financial performance for the semiannual period
and the past 5 fiscal years (or life of a particular share class, if shorter). Certain information reflects financial results
for a single fund share. The total returns in the table represent the rate by which an investor would have earned (or lost)
on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
CLASS A CLASS B
-------------------------------------- -----------------------------------
SIX MONTHS YEARS ENDED 4/30 SIX MONTHS YEARS ENDED 4/30
ENDED ---------------------- ENDED --------------------
10/31/07 2007 2006(c) 10/31/07 2007 2006(c)
(UNAUDITED) (UNAUDITED)
Net asset value, beginning of period $12.27 $11.10 $10.00 $12.21 $11.08 $10.00
- -------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (d) $(0.01) $0.04 $0.01 $(0.05) $(0.03) $(0.03)
Net realized and unrealized gain (loss) on
investments 0.81 1.27 1.26 0.81 1.24 1.27
- -------------------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.80 $1.31 $1.27 $0.76 $1.21 $1.24
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
- -------------------------------------------------------------------------------------------------------------------------------
From net investment income $-- $(0.09) $(0.16) $-- $(0.03) $(0.15)
From net realized gain on investments -- (0.05) (0.01) -- (0.05) (0.01)
- -------------------------------------------------------------------------------------------------------------------------------
Total distributions declared to shareholders $-- $(0.14) $(0.17) $-- $(0.08) $(0.16)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $13.07 $12.27 $11.10 $12.97 $12.21 $11.08
- -------------------------------------------------------------------------------------------------------------------------------
Total return (%) (r)(t) 6.52(n) 11.86 12.76(n) 6.22(n) 11.00 12.45(n)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) (TO AVERAGE NET ASSETS)
AND SUPPLEMENTAL DATA:
- -------------------------------------------------------------------------------------------------------------------------------
Expenses before expense reductions (f)(h) 1.42(a) 2.75 11.32(a) 2.20(a) 3.57 11.97(a)
Expenses after expense reductions (f)(h) 0.45(a) 0.45 0.45(a) 1.10(a) 1.10 1.10(a)
Net investment income (loss) (0.17)(a) 0.38 0.10(a) (0.82)(a) (0.27) (0.45)(a)
Portfolio turnover 8 11 33 8 11 33
Net assets at end of period (000 Omitted) $2,930 $3,420 $599 $1,571 $1,124 $466
- -------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS
Financial Highlights - continued
MFS(R) LIFETIME 2040 FUND - CONTINUED
CLASS C
------------------------------------
SIX MONTHS YEARS ENDED 4/30
ENDED --------------------
10/31/07 2007 2006(c)
(UNAUDITED)
Net asset value, beginning of period $12.23 $11.08 $10.00
- ---------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
- ---------------------------------------------------------------------------------------------------------------------
Net investment loss (d) $(0.05) $(0.03) $(0.02)
Net realized and unrealized gain (loss) on investments 0.82 1.25 1.25
- ---------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.77 $1.22 $1.23
- ---------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
- ---------------------------------------------------------------------------------------------------------------------
From net investment income $-- $(0.02) $(0.14)
From net realized gain on investments -- (0.05) (0.01)
- ---------------------------------------------------------------------------------------------------------------------
Total distributions declared to shareholders $-- $(0.07) $(0.15)
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $13.00 $12.23 $11.08
- ---------------------------------------------------------------------------------------------------------------------
Total return (%) (r)(t) 6.30(n) 11.05 12.38(n)
- ---------------------------------------------------------------------------------------------------------------------
RATIOS (%) (TO AVERAGE NET ASSETS) AND SUPPLEMENTAL DATA:
- ---------------------------------------------------------------------------------------------------------------------
Expenses before expense reductions (f)(h) 2.28(a) 3.57 11.97(a)
Expenses after expense reductions (f)(h) 1.10(a) 1.10 1.10(a)
Net investment loss (0.81)(a) (0.31) (0.26)(a)
Portfolio turnover 8 11 33
Net assets at end of period (000 Omitted) $375 $212 $86
- ---------------------------------------------------------------------------------------------------------------------
CLASS I
------------------------------------
SIX MONTHS YEARS ENDED 4/30
ENDED --------------------
10/31/07 2007 2006(c)
(UNAUDITED)
Net asset value, beginning of period $12.32 $11.12 $10.00
- ---------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
- ---------------------------------------------------------------------------------------------------------------------
Net investment income (d) $0.01 $0.08 $0.04
Net realized and unrealized gain (loss) on investments 0.82 1.27 1.25
- ---------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.83 $1.35 $1.29
- ---------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
- ---------------------------------------------------------------------------------------------------------------------
From net investment income $-- $(0.10) $(0.16)
From net realized gain on investments -- (0.05) (0.01)
- ---------------------------------------------------------------------------------------------------------------------
Total distributions declared to shareholders $-- $(0.15) $(0.17)
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $13.15 $12.32 $11.12
- ---------------------------------------------------------------------------------------------------------------------
Total return (%) (r) 6.74(n) 12.26 13.01(n)
- ---------------------------------------------------------------------------------------------------------------------
RATIOS (%) (TO AVERAGE NET ASSETS) AND SUPPLEMENTAL DATA:
- ---------------------------------------------------------------------------------------------------------------------
Expenses before expense reductions (f)(h) 1.22(a) 2.59 10.97(a)
Expenses after expense reductions (f)(h) 0.10(a) 0.10 0.10(a)
Net investment income 0.17(a) 0.71 0.62(a)
Portfolio turnover 8 11 33
Net assets at end of period (000 Omitted) $1,531 $1,004 $582
- ---------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS
Financial Highlights - continued
MFS(R) LIFETIME 2040 FUND - CONTINUED
CLASS R1 CLASS R2
-------------------------------------- -----------------------------------
SIX MONTHS YEARS ENDED 4/30 SIX MONTHS YEARS ENDED 4/30
ENDED ---------------------- ENDED --------------------
10/31/07 2007 2006(c) 10/31/07 2007 2006(c)
(UNAUDITED) (UNAUDITED)
Net asset value, beginning of period $12.20 $11.08 $10.00 $12.23 $11.10 $10.00
- -------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (d) $(0.06) $(0.05) $(0.03) $(0.04) $(0.00)(w) $0.00(w)
Net realized and unrealized gain (loss) on
investments 0.82 1.26 1.25 0.82 1.25 1.25
- -------------------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.76 $1.21 $1.22 $0.78 $1.25 $1.25
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
- -------------------------------------------------------------------------------------------------------------------------------
From net investment income $-- $(0.04) $(0.13) $-- $(0.07) $(0.14)
From net realized gain on investments -- (0.05) (0.01) -- (0.05) (0.01)
- -------------------------------------------------------------------------------------------------------------------------------
Total distributions declared to shareholders $-- $(0.09) $(0.14) $-- $(0.12) $(0.15)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.96 $12.20 $11.08 $13.01 $12.23 $11.10
- -------------------------------------------------------------------------------------------------------------------------------
Total return (%) (r) 6.23(n) 11.00 12.31(n) 6.38(n) 11.33 12.61(n)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) (TO AVERAGE NET ASSETS)
AND SUPPLEMENTAL DATA:
- -------------------------------------------------------------------------------------------------------------------------------
Expenses before expense reductions (f)(h) 2.31(a) 3.55 12.17(a) 1.97(a) 3.14 11.87(a)
Expenses after expense reductions (f)(h) 1.20(a) 1.20 1.20(a) 0.85(a) 0.85 0.85(a)
Net investment income (loss) (0.91)(a) (0.42) (0.42)(a) (0.57)(a) (0.02) 0.02(a)
Portfolio turnover 8 11 33 8 11 33
Net assets at end of period (000 Omitted) $1,328 $752 $127 $1,701 $687 $56
- -------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS
Financial Highlights - continued
MFS(R) LIFETIME 2040 FUND - CONTINUED
CLASS R3 CLASS R4
-------------------------------------- -----------------------------------
SIX MONTHS YEARS ENDED 4/30 SIX MONTHS YEARS ENDED 4/30
ENDED ---------------------- ENDED --------------------
10/31/07 2007 2006(c) 10/31/07 2007 2006(c)
(UNAUDITED) (UNAUDITED)
Net asset value, beginning of period $12.24 $11.10 $10.00 $12.27 $11.11 $10.00
- -------------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (d) $(0.03) $0.00(w) $0.01 $(0.01) $0.05 $0.03
Net realized and unrealized gain (loss) on
investments 0.82 1.26 1.25 0.81 1.25 1.24
- -------------------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.79 $1.26 $1.26 $0.80 $1.30 $1.27
- -------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
- -------------------------------------------------------------------------------------------------------------------------------
From net investment income $-- $(0.07) $(0.15) $-- $(0.09) $(0.15)
From net realized gain on investments -- (0.05) (0.01) -- (0.05) (0.01)
- -------------------------------------------------------------------------------------------------------------------------------
Total distributions declared to shareholders $-- $(0.12) $(0.16) $-- $(0.14) $(0.16)
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $13.03 $12.24 $11.10 $13.07 $12.27 $11.11
- -------------------------------------------------------------------------------------------------------------------------------
Total return (%) (r) 6.45(n) 11.43 12.70(n) 6.52(n) 11.74 12.84(n)
- -------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) (TO AVERAGE NET ASSETS)
AND SUPPLEMENTAL DATA:
- -------------------------------------------------------------------------------------------------------------------------------
Expenses before expense reductions (f)(h) 1.90(a) 3.06 11.72(a) 1.57(a) 2.78 11.37(a)
Expenses after expense reductions (f)(h) 0.75(a) 0.75 0.75(a) 0.50(a) 0.50 0.50(a)
Net investment income (loss) (0.46)(a) 0.03 0.08(a) (0.22)(a) 0.39 0.38(a)
Portfolio turnover 8 11 33 8 11 33
Net assets at end of period (000 Omitted) $6,111 $3,702 $323 $4,525 $2,371 $169
- -------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS
Financial Highlights - continued
MFS(R) LIFETIME 2040 FUND - CONTINUED
CLASS R5
------------------------------------
SIX MONTHS YEARS ENDED 4/30
ENDED --------------------
10/31/07 2007 2006(c)
(UNAUDITED)
Net asset value, beginning of period $12.31 $11.12 $10.00
- ---------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM INVESTMENT OPERATIONS
- ---------------------------------------------------------------------------------------------------------------------
Net investment income (d) $0.01 $0.07 $0.04
Net realized and unrealized gain (loss) on investments 0.82 1.26 1.25
- ---------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.83 $1.33 $1.29
- ---------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
- ---------------------------------------------------------------------------------------------------------------------
From net investment income $-- $(0.09) $(0.16)
From net realized gain on investments -- (0.05) (0.01)
- ---------------------------------------------------------------------------------------------------------------------
Total distributions declared to shareholders $-- $(0.14) $(0.17)
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $13.14 $12.31 $11.12
- ---------------------------------------------------------------------------------------------------------------------
Total return (%) (r) 6.74(n) 12.07 12.99(n)
- ---------------------------------------------------------------------------------------------------------------------
RATIOS (%) (TO AVERAGE NET ASSETS)
AND SUPPLEMENTAL DATA:
- ---------------------------------------------------------------------------------------------------------------------
Expenses before expense reductions (f)(h) 1.84(a) 2.78 11.07(a)
Expenses after expense reductions (f)(h) 0.20(a) 0.20 0.20(a)
Net investment income 0.10(a) 0.60 0.67(a)
Portfolio turnover 8 11 33
Net assets at end of period (000 Omitted) $1,292 $63 $56
- ---------------------------------------------------------------------------------------------------------------------
(a) Annualized.
(c) For the period from the commencement of the fund's investment operations, September 29, 2005, through the stated period end.
(d) Per share data are based on average shares outstanding.
(f) Ratios do not reflect reductions from fees paid indirectly.
(h) In addition to the fees and expenses which the fund bears directly, the fund indirectly bears a pro rata share of
the fees and expenses of the underlying funds in which the fund invests. Because the underlying funds have varied
expense and fee levels and the fund may own different proportions of the underlying funds at different times, the
amount of fees and expenses incurred directly by the fund will vary.
(n) Not annualized.
(r) Certain expenses have been reduced without which performance would have been lower.
(t) Total returns do not include any applicable sales charges.
(w) Per share amount was less than $0.01.
SEE NOTES TO FINANCIAL STATEMENTS
NOTES TO FINANCIAL STATEMENTS
(unaudited)
(1) BUSINESS AND ORGANIZATION
MFS Lifetime Retirement Income Fund, MFS Lifetime 2010 Fund, MFS Lifetime 2020
Fund, MFS Lifetime 2030 Fund, and MFS Lifetime 2040 Fund (the funds) are each a
series of MFS Series Trust XII (the trust). The trust is organized as a
Massachusetts business trust and is registered under the Investment Company Act
of 1940, as amended, as an open-end management investment company.
(2) SIGNIFICANT ACCOUNTING POLICIES
GENERAL - The preparation of financial statements in conformity with U.S.
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities, and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
Each fund is a "fund of funds", which invests the majority of its assets in
other MFS equity, fixed income, international, and money market mutual funds
(underlying funds), which may have different fiscal year ends than the funds.
The underlying funds, in turn, may engage in a number of investment techniques
and practices, which involve certain risks. Additional information, including
each underlying fund's accounting policies, is outlined in the underlying
fund's financial statements which are available upon request.
INVESTMENT VALUATIONS - Open-end investment companies are generally valued at
their net asset value per share. The underlying investments of open-end
investment companies managed by the adviser are valued as described below.
Equity securities, including restricted equity securities, are generally valued
at the last sale or official closing price as reported by an independent
pricing service on the market or exchange on which they are primarily traded.
For securities for which there were no sales reported that day, equity
securities are generally valued at the last quoted daily bid quotation as
reported by an independent pricing service on the market or exchange on which
they are primarily traded. For securities held short for which there were no
sales reported for the day, the position is generally valued at the last quoted
daily ask quotation as reported by an independent pricing service on the market
or exchange on which such securities are primarily traded. Debt instruments
(other than short-term instruments), including restricted debt instruments, are
generally valued at an evaluated or composite bid as reported by an independent
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 as reported by an independent pricing service on the exchange on
which such options are primarily traded. Exchange-traded options for which
there were no sales reported that day are generally valued at the last daily
bid quotation as reported by an independent pricing service on the exchange on
which such options are primarily traded. Options not traded on an exchange are
generally valued at a broker-dealer bid quotation. Foreign currency options are
generally valued using an external pricing model that uses market data from an
independent source. Futures contracts are generally valued at last posted
settlement price as reported by an independent pricing service on the market on
which they are primarily traded. Futures contracts for which there were no
trades that day for a particular position are generally valued at the closing
bid quotation as reported by an independent pricing service on the market on
which such futures contracts are primarily traded. Forward foreign currency
contracts are generally valued at the mean of bid and asked prices for the time
period interpolated from rates reported by an independent pricing service for
proximate time periods. Swaps are generally valued at an evaluated bid as
reported by an independent pricing service. Securities and other assets
generally valued on the basis of information from an independent pricing
service may also be valued at a broker-dealer bid quotation. Values obtained
from pricing services can utilize both dealer-supplied valuations and
electronic data processing techniques, which take into account factors such as
institutional-size trading in similar groups of securities, yield, quality,
coupon rate, maturity, type of issue, trading characteristics, and other market
data. The values of foreign securities and other assets and liabilities
expressed in foreign currencies are converted to U.S. dollars using the mean of
bid and asked prices for rates reported by an independent 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 many types of debt instruments and certain types of derivatives.
These investments are generally valued at fair value based on information from
independent pricing services. In addition, investments may be valued at fair
value if the adviser determines that an investment's value has been materially
affected by events occurring after the close of the exchange or market on which
the investment is principally traded (such as foreign exchange or market) and
prior to the determination of the fund's net asset value, or after the halting
of trading of a specific security where trading does not resume prior to the
close of the exchange or market on which the security is principally traded.
Events that occur on a frequent basis after foreign markets close (such as
developments in foreign markets and significant movements in the U.S. markets)
and prior to the determination of the fund's net asset value may be deemed to
have a material affect on the value of securities traded in foreign markets.
Accordingly, the fund's foreign equity securities may often be valued at fair
value. The adviser may rely on independent 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
investments used to determine the fund's net asset value may differ from quoted
or published prices for the same investments.
In September 2006, FASB Statement No. 157, Fair Value Measurements (the
"Statement") was issued, and is effective for fiscal years beginning after
November 15, 2007 and for all interim periods within those fiscal years. This
Statement provides a single definition of fair value, a hierarchy for measuring
fair value and expanded disclosures about fair value measurements. Management
is evaluating the application of the Statement to the fund, and believes the
impact will be limited to expanded disclosures resulting from the adoption of
this Statement in the fund's financial statements.
INDEMNIFICATIONS - Under each fund's organizational documents, its officers and
trustees may be indemnified against certain liabilities and expenses arising
out of the performance of their duties to each fund. Additionally, in the
normal course of business, each fund enters into agreements with service
providers that may contain indemnification clauses. Each fund's maximum
exposure under these agreements is unknown as this would involve future claims
that may be made against the fund that have not yet occurred.
INVESTMENT TRANSACTIONS AND INCOME - Investment transactions are recorded on
the trade date. Interest income is recorded on an accrual basis. All premium
and discount is amortized or accreted for financial statement purposes in
accordance with U.S. generally accepted accounting principles. All discount is
accreted for tax reporting purposes as required by federal income tax
regulations. Distributions of income and capital gains from the underlying
funds are recorded on the ex-dividend date. In determining the net gain or loss
on securities sold, the cost of securities is determined on the identified cost
basis.
FEES PAID INDIRECTLY - Each fund's custody fee is reduced according to an
arrangement that measures the value of cash deposited with the custodian by the
fund. This amount, for the six months ended October 31, 2007, is shown as a
reduction of total expenses on the Statement of Operations.
TAX MATTERS AND DISTRIBUTIONS - Each fund intends to qualify as a regulated
investment company, as defined under Subchapter M of the Internal Revenue Code,
and to distribute all of its taxable income, including realized capital gains.
Accordingly, no provision for federal income tax is required in the financial
statements. Foreign taxes, if any, have been accrued by each fund in the
accompanying financial statements.
Distributions to shareholders are recorded on the ex-dividend date. Income and
capital gain distributions are determined in accordance with income tax
regulations, which may differ from U.S. generally accepted accounting
principles. Certain capital accounts in the financial statements are
periodically adjusted for permanent differences in order to reflect their tax
character. These adjustments have no impact on net assets or net asset value
per share. Temporary differences which arise from recognizing certain items of
income, expense, gain or loss in different periods for financial statement and
tax purposes will reverse at some time in the future. Distributions in excess
of net investment income or net realized gains are temporary overdistributions
for financial statement purposes resulting from differences in the recognition
or classification of income or distributions for financial statement and tax
purposes.
Book/tax differences primarily relate to wash sale loss deferrals, treating a
portion of the proceeds from redemptions as a distribution for tax purposes,
and short-term capital gain distributions received from underlying funds.
Tax character of distributions made during the current period will be
determined at fiscal year end. The tax character of distributions declared to
shareholders is as follows:
MFS LIFETIME
RETIREMENT MFS LIFETIME MFS LIFETIME MFS LIFETIME MFS LIFETIME
YEAR ENDED 4/30/07 INCOME FUND 2010 FUND 2020 FUND 2030 FUND 2040 FUND
Ordinary income (including any short-term capital gains) $170,883 $141,331 $319,686 $159,310 $57,645
Long-term capital gain 4,607 13,605 145,719 15,837 36,113
- ----------------------------------------------------------------------------------------------------------------------------------
$175,490 $154,936 $465,405 $175,147 $93,758
The federal tax cost and the tax basis components of distributable earnings were as follows:
MFS LIFETIME
RETIREMENT MFS LIFETIME MFS LIFETIME MFS LIFETIME MFS LIFETIME
INCOME FUND 2010 FUND 2020 FUND 2030 FUND 2040 FUND
AS OF 10/31/07
Cost of investments $15,605,125 $20,607,985 $54,796,930 $37,414,533 $19,117,282
- ----------------------------------------------------------------------------------------------------------------------------------
Gross appreciation $310,835 $839,484 $5,020,818 $4,052,758 $2,203,820
Gross depreciation (11,486) (38,163) (56,630) (6,889) --
- ----------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) $299,349 $801,321 $4,964,188 $4,045,869 $2,203,820
AS OF 4/30/07
Undistributed ordinary income $18,685 $118,573 $179,475 $29,543 $3,612
Undistributed long-term capital gain 30,488 66,509 229,834 254,416 146,265
Other temporary differences (17,273) -- -- -- --
Net unrealized appreciation (depreciation) 163,522 442,406 2,724,949 2,008,494 1,156,750
The aggregate cost above includes prior fiscal year end tax adjustments.
MULTIPLE CLASSES OF SHARES OF BENEFICIAL INTEREST - Each fund offers multiple classes of shares, which differ in their
respective distribution and service fees. For the MFS Lifetime Retirement Income Fund all shareholders bear the common expenses
of the fund based on the value of settled shares outstanding of each class, without distinction between share classes. For all
other funds, all shareholders bear the common expenses of each fund based on the daily net assets of each class, without
distinction between share classes. Dividends are declared separately for each class. Differences in per share dividend rates are
generally due to differences in separate class expenses. Class B shares will convert to Class A shares approximately eight years
after purchase.
(3) TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISER - Each fund has an investment advisory agreement with Massachusetts Financial Services Company (MFS) to
provide overall investment management and related administrative services and facilities to the fund. MFS receives no
compensation under this agreement.
The investment adviser has agreed in writing to pay a portion of each fund's operating expenses, exclusive of distribution and
service, retirement plan administration and services, and certain other fees and expenses, such that operating expenses do not
exceed 0.10% annually of each fund's average daily net assets. This written agreement will continue through August 31, 2008
unless changed or rescinded by the fund's Board of Trustees. For the six months ended October 31, 2007, this reduction amounted
to the following and is reflected as a reduction of total expenses in the Statement of Operations.
MFS LIFETIME
RETIREMENT MFS LIFETIME MFS LIFETIME MFS LIFETIME MFS LIFETIME
INCOME FUND 2010 FUND 2020 FUND 2030 FUND 2040 FUND
$84,998 $95,499 $95,220 $90,646 $97,607
In addition to the fees and expenses which each fund bears directly, each fund indirectly bears a pro rata share of the fees and
expenses of the underlying funds in which a fund invests.
DISTRIBUTOR - MFS Fund Distributors, Inc. (MFD), a wholly-owned subsidiary of MFS, as distributor, received the following amounts
for the six months ended October 31, 2007, as its portion of the initial sales charge on sales of Class A shares of each fund:
MFS LIFETIME
RETIREMENT MFS LIFETIME MFS LIFETIME MFS LIFETIME MFS LIFETIME
INCOME FUND 2010 FUND 2020 FUND 2030 FUND 2040 FUND
$2,087 $2,977 $5,778 $2,912 $1,664
The Board of Trustees has adopted a distribution plan for certain class shares pursuant to Rule 12b-1 of the Investment Company
Act of 1940.
Each fund's distribution plan provides that the fund will pay MFD for services provided by MFD and financial intermediaries in
connection with the distribution and servicing of certain share classes. One component of the plan is a distribution fee paid to
MFD and another component of the plan is a service fee paid to MFD. MFD may subsequently pay all, or a portion, of the
distribution and/or service fees to financial intermediaries.
DISTRIBUTION PLAN FEE TABLE:
CLASS A
--------------------------------------------------------------------------------
TOTAL ANNUAL DISTRIBUTION
DISTRIBUTION SERVICE DISTRIBUTION EFFECTIVE AND SERVICE
FEE RATE FEE RATE PLAN (d) RATE (e) FEE
MFS Lifetime Retirement Income Fund 0.10% 0.25% 0.35% 0.35% $3,410
MFS Lifetime 2010 Fund 0.10% 0.25% 0.35% 0.35% 5,713
MFS Lifetime 2020 Fund 0.10% 0.25% 0.35% 0.35% 15,053
MFS Lifetime 2030 Fund 0.10% 0.25% 0.35% 0.35% 9,090
MFS Lifetime 2040 Fund 0.10% 0.25% 0.35% 0.35% 5,977
CLASS B
--------------------------------------------------------------------------------
TOTAL ANNUAL DISTRIBUTION
DISTRIBUTION SERVICE DISTRIBUTION EFFECTIVE AND SERVICE
FEE RATE FEE RATE PLAN (d) RATE (e) FEE
MFS Lifetime Retirement Income Fund 0.75% 0.25% 1.00% 1.00% $3,704
MFS Lifetime 2010 Fund 0.75% 0.25% 1.00% 1.00% 3,779
MFS Lifetime 2020 Fund 0.75% 0.25% 1.00% 1.00% 19,735
MFS Lifetime 2030 Fund 0.75% 0.25% 1.00% 1.00% 7,809
MFS Lifetime 2040 Fund 0.75% 0.25% 1.00% 1.00% 6,545
CLASS C
--------------------------------------------------------------------------------
TOTAL ANNUAL DISTRIBUTION
DISTRIBUTION SERVICE DISTRIBUTION EFFECTIVE AND SERVICE
FEE RATE FEE RATE PLAN (d) RATE (e) FEE
MFS Lifetime Retirement Income Fund 0.75% 0.25% 1.00% 1.00% $3,732
MFS Lifetime 2010 Fund 0.75% 0.25% 1.00% 1.00% 3,292
MFS Lifetime 2020 Fund 0.75% 0.25% 1.00% 1.00% 7,520
MFS Lifetime 2030 Fund 0.75% 0.25% 1.00% 1.00% 2,721
MFS Lifetime 2040 Fund 0.75% 0.25% 1.00% 1.00% 1,311
CLASS R1
--------------------------------------------------------------------------------
TOTAL ANNUAL DISTRIBUTION
DISTRIBUTION SERVICE DISTRIBUTION EFFECTIVE AND SERVICE
FEE RATE FEE RATE PLAN (d) RATE (e) FEE
MFS Lifetime Retirement Income Fund 0.50% 0.25% 0.75% 0.75% $4,326
MFS Lifetime 2010 Fund 0.50% 0.25% 0.75% 0.75% 3,627
MFS Lifetime 2020 Fund 0.50% 0.25% 0.75% 0.75% 12,891
MFS Lifetime 2030 Fund 0.50% 0.25% 0.75% 0.75% 7,144
MFS Lifetime 2040 Fund 0.50% 0.25% 0.75% 0.75% 4,071
CLASS R2
--------------------------------------------------------------------------------
TOTAL ANNUAL DISTRIBUTION
DISTRIBUTION SERVICE DISTRIBUTION EFFECTIVE AND SERVICE
FEE RATE FEE RATE PLAN (d) RATE (e) FEE
MFS Lifetime Retirement Income Fund 0.25% 0.25% 0.50% 0.50% $1,258
MFS Lifetime 2010 Fund 0.25% 0.25% 0.50% 0.50% 2,776
MFS Lifetime 2020 Fund 0.25% 0.25% 0.50% 0.50% 9,888
MFS Lifetime 2030 Fund 0.25% 0.25% 0.50% 0.50% 4,818
MFS Lifetime 2040 Fund 0.25% 0.25% 0.50% 0.50% 3,396
CLASS R3
--------------------------------------------------------------------------------
TOTAL ANNUAL DISTRIBUTION
DISTRIBUTION SERVICE DISTRIBUTION EFFECTIVE AND SERVICE
FEE RATE FEE RATE PLAN (d) RATE (e) FEE
MFS Lifetime Retirement Income Fund 0.25% 0.25% 0.50% 0.50% $5,642
MFS Lifetime 2010 Fund 0.25% 0.25% 0.50% 0.50% 10,370
MFS Lifetime 2020 Fund 0.25% 0.25% 0.50% 0.50% 32,994
MFS Lifetime 2030 Fund 0.25% 0.25% 0.50% 0.50% 22,072
MFS Lifetime 2040 Fund 0.25% 0.25% 0.50% 0.50% 11,238
CLASS R4
--------------------------------------------------------------------------------
TOTAL ANNUAL DISTRIBUTION
DISTRIBUTION SERVICE DISTRIBUTION EFFECTIVE AND SERVICE
FEE RATE FEE RATE PLAN (d) RATE (e) FEE
MFS Lifetime Retirement Income Fund -- 0.25% 0.25% 0.25% $4,567
MFS Lifetime 2010 Fund -- 0.25% 0.25% 0.25% 6,898
MFS Lifetime 2020 Fund -- 0.25% 0.25% 0.25% 18,656
MFS Lifetime 2030 Fund -- 0.25% 0.25% 0.25% 12,667
MFS Lifetime 2040 Fund -- 0.25% 0.25% 0.25% 5,094
MFS LIFETIME
RETIREMENT MFS LIFETIME MFS LIFETIME MFS LIFETIME MFS LIFETIME
INCOME FUND 2010 FUND 2020 FUND 2030 FUND 2040 FUND
Total Distributions and Service Fees $26,639 $36,455 $116,737 $66,321 $37,632
(d) In accordance with the distribution plan for certain classes, the fund pays distribution and/or service fees up to these
annual percentage rates of each class' average daily net assets.
(e) The annual effective rates represent actual fees incurred under the distribution plan for the six months ended October 31,
2007 based on each class' average daily net assets.
Certain Class A and Class C shares are subject to a contingent deferred sales charge in the event of a shareholder redemption
within 12 months of purchase. Class B shares are subject to a contingent deferred sales charge in the event of a shareholder
redemption within six years of purchase. All contingent deferred sales charges are paid to MFD and during the six months ended
October 31, 2007, were as follows:
MFS LIFETIME
RETIREMENT MFS LIFETIME MFS LIFETIME MFS LIFETIME MFS LIFETIME
CDSC IMPOSED INCOME FUND 2010 FUND 2020 FUND 2030 FUND 2040 FUND
Class A $-- $-- $30 $35 $2
Class B $944 $714 $3,145 $3,690 $662
Class C $1,081 $1 $181 $504 $11
SHAREHOLDER SERVICING AGENT - MFS Service Center, Inc. (MFSC), a wholly-owned subsidiary of MFS, receives payment from the fund
for out-of-pocket and sub-accounting expenses paid by MFSC on behalf of the fund. For the six months ended October 31, 2007,
these costs amounted to the following:
MFS LIFETIME
RETIREMENT MFS LIFETIME MFS LIFETIME MFS LIFETIME MFS LIFETIME
INCOME FUND 2010 FUND 2020 FUND 2030 FUND 2040 FUND
$1,068 $3,295 $5,773 $4,781 $4,152
Effective May 1, 2007, under a Special Servicing Agreement among MFS, each MFS fund which invests in other MFS funds ("MFS
fund-of-funds") and each underlying fund in which a MFS fund-of-funds invests ("underlying funds"), each underlying fund may pay
a portion of each MFS fund-of-fund's transfer agent-related expenses, including sub-accounting fees payable to financial
intermediaries, to the extent such payments do not exceed the benefits realized or expected to be realized by the underlying fund
from the investment in the underlying fund by the MFS fund-of-fund. For the six months ended October 31, 2007, the shareholder
servicing costs on the Statement of Operations reflect this agreement.
ADMINISTRATOR - MFS provides certain financial, legal, shareholder communications, compliance, and other administrative services
to each fund. Under an administrative services agreement, each fund partially reimburses MFS the costs incurred to provide these
services. Each fund pays an annual fixed amount of $17,500.
The administrative services fee incurred for the six months ended October 31, 2007 was equivalent to the following annual
effective rates of each fund's average daily net assets:
MFS LIFETIME
RETIREMENT MFS LIFETIME MFS LIFETIME MFS LIFETIME MFS LIFETIME
INCOME FUND 2010 FUND 2020 FUND 2030 FUND 2040 FUND
0.1582% 0.1024% 0.0345% 0.0550% 0.0995%
In addition to the administrative services provided by MFS to each fund as described above, MFS is responsible for providing
certain retirement plan administration and services with respect to certain shares. These services include various
administrative, recordkeeping, and communication/educational services with respect to the retirement plans which invest in these
shares, and may be provided directly by MFS or by a third party. MFS may subsequently pay all, or a portion, of the retirement
plan administration and services fee to affiliated or unaffiliated third parties. For the six months ended October 31, 2007, each
fund paid MFS an annual retirement plan administration and services fee up to the following annual percentage rates of each
class' average daily net assets:
CLASS R1
------------------------
TOTAL
FEE RATE AMOUNT
MFS Lifetime Retirement Income Fund 0.35% $2,019
MFS Lifetime 2010 Fund 0.35% 1,693
MFS Lifetime 2020 Fund 0.35% 6,016
MFS Lifetime 2030 Fund 0.35% 3,330
MFS Lifetime 2040 Fund 0.35% 1,899
CLASS R2
------------------------
TOTAL
FEE RATE AMOUNT
MFS Lifetime Retirement Income Fund 0.25% $629
MFS Lifetime 2010 Fund 0.25% 1,388
MFS Lifetime 2020 Fund 0.25% 4,944
MFS Lifetime 2030 Fund 0.25% 2,409
MFS Lifetime 2040 Fund 0.25% 1,698
CLASS R3
------------------------
TOTAL
FEE RATE AMOUNT
MFS Lifetime Retirement Income Fund 0.15% $1,693
MFS Lifetime 2010 Fund 0.15% 3,111
MFS Lifetime 2020 Fund 0.15% 9,899
MFS Lifetime 2030 Fund 0.15% 6,622
MFS Lifetime 2040 Fund 0.15% 3,371
CLASS R4
------------------------
TOTAL
FEE RATE AMOUNT
MFS Lifetime Retirement Income Fund 0.15% $2,740
MFS Lifetime 2010 Fund 0.15% 4,139
MFS Lifetime 2020 Fund 0.15% 11,193
MFS Lifetime 2030 Fund 0.15% 7,600
MFS Lifetime 2040 Fund 0.15% 3,056
CLASS R5
------------------------
TOTAL
FEE RATE AMOUNT
MFS Lifetime Retirement Income Fund 0.10% $53
MFS Lifetime 2010 Fund 0.10% 107
MFS Lifetime 2020 Fund 0.10% 347
MFS Lifetime 2030 Fund 0.10% 311
MFS Lifetime 2040 Fund 0.10% 243
TOTAL RETIREMENT PLAN ADMINISTRATION AND SERVICES FEES
MFS LIFETIME
RETIREMENT MFS LIFETIME MFS LIFETIME MFS LIFETIME MFS LIFETIME
INCOME FUND 2010 FUND 2020 FUND 2030 FUND 2040 FUND
$7,134 $10,438 $32,399 $20,272 $10,267
TRUSTEES' AND OFFICERS' COMPENSATION - Each fund pays compensation to independent trustees in the form of a retainer, attendance
fees, and additional compensation to Board and Committee chairpersons. 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 - Each fund and certain other MFS funds (the funds) have entered into a services agreement (the Agreement) which provides
for payment of fees by the funds to Tarantino LLC in return for the provision of services of an Independent Chief Compliance
Officer (ICCO) for the funds. The ICCO is an officer of the funds and the sole member of Tarantino LLC. The funds can terminate
the Agreement with Tarantino LLC at any time under the terms of the Agreement. For the six months ended October 31, 2007, the fee
paid to Tarantino LLC amounted to the following:
MFS LIFETIME
RETIREMENT MFS LIFETIME MFS LIFETIME MFS LIFETIME MFS LIFETIME
INCOME FUND 2010 FUND 2020 FUND 2030 FUND 2040 FUND
$24 $41 $121 $74 $42
MFS has agreed to reimburse each fund for a portion of the payments made by the funds to Tarantino LLC in the following amounts,
which are shown as a reduction of total expenses in the Statement of Operations. Additionally, MFS has agreed to bear all
expenses associated with office space, other administrative support, and supplies provided to the ICCO.
MFS LIFETIME
RETIREMENT MFS LIFETIME MFS LIFETIME MFS LIFETIME MFS LIFETIME
INCOME FUND 2010 FUND 2020 FUND 2030 FUND 2040 FUND
$24 $40 $119 $73 $41
(4) PORTFOLIO SECURITIES
Purchases and sales of shares of underlying funds aggregated to the following:
MFS LIFETIME
RETIREMENT MFS LIFETIME MFS LIFETIME MFS LIFETIME MFS LIFETIME
INCOME FUND 2010 FUND 2020 FUND 2030 FUND 2040 FUND
Purchases $14,187,987 $8,675,548 $21,402,917 $16,520,883 $8,104,670
- -----------------------------------------------------------------------------------------------------------------------------------
Sales $5,455,711 $1,844,725 $4,798,686 $1,896,322 $1,348,122
- -----------------------------------------------------------------------------------------------------------------------------------
(5) SHARES OF BENEFICIAL INTEREST
Each fund's Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial
interest. Transactions in each fund shares were as follows:
MFS(R) LIFETIME RETIREMENT INCOME FUND
SIX MONTHS ENDED 10/31/07 YEAR ENDED 4/30/07
SHARES AMOUNT SHARES AMOUNT
Shares sold
Class A 126,136 $1,308,404 143,219 $1,440,438
Class B 26,023 269,262 26,533 266,000
Class C 17,456 179,806 51,435 522,615
Class I 1,277 13,260 1,183 12,244
Class R1 13,985 144,309 294,517 2,990,363
Class R2 45,798 472,921 35,134 358,985
Class R3 340,956 3,541,382 266,218 2,697,951
Class R4 904,243 9,254,419 70,868 722,441
Class R5 13,824 142,159 -- --
- ----------------------------------------------------------------------------------------------------------------------------------
1,489,698 $15,325,922 889,107 $9,011,037
Shares issued to shareholders in reinvestment of distributions
Class A 3,135 $32,427 5,179 $52,572
Class B 1,025 10,606 1,544 15,655
Class C 1,025 10,608 1,200 12,221
Class I 130 1,342 222 2,220
Class R1 1,758 18,185 2,048 20,911
Class R2 872 9,035 430 4,339
Class R3 3,947 40,887 4,672 47,330
Class R4 6,957 72,172 865 8,825
Class R5 220 2,281 214 2,173
- ----------------------------------------------------------------------------------------------------------------------------------
19,069 $197,543 16,374 $166,246
Shares reacquired
Class A (98,792) $(1,022,185) (32,095) $(328,353)
Class B (15,906) (164,593) (3,971) (39,915)
Class C (12,016) (124,374) (15,417) (153,396)
Class I (1,782) (18,411) (18) (182)
Class R1 (17,355) (179,265) (197,067) (2,006,508)
Class R2 (7,729) (79,874) (8,202) (83,835)
Class R3 (129,635) (1,341,444) (168,210) (1,722,435)
Class R4 (370,066) (3,817,012) (13,270) (136,045)
Class R5 (398) (4,156) -- --
- ----------------------------------------------------------------------------------------------------------------------------------
(653,679) $(6,751,314) (438,250) $(4,470,669)
Net change
Class A 30,479 $318,646 116,303 $1,164,657
Class B 11,142 115,275 24,106 241,740
Class C 6,465 66,040 37,218 381,440
Class I (375) (3,809) 1,387 14,282
Class R1 (1,612) (16,771) 99,498 1,004,766
Class R2 38,941 402,082 27,362 279,489
Class R3 215,268 2,240,825 102,680 1,022,846
Class R4 541,134 5,509,579 58,463 595,221
Class R5 13,646 140,284 214 2,173
- ----------------------------------------------------------------------------------------------------------------------------------
855,088 $8,772,151 467,231 $4,706,614
MFS(R) LIFETIME 2010 FUND
SIX MONTHS ENDED 10/31/07 YEAR ENDED 4/30/07(c)
SHARES AMOUNT SHARES AMOUNT
Shares sold
Class A 309,627 $3,463,510 264,427 $2,807,130
Class B 14,316 158,645 53,038 557,648
Class C 31,129 349,244 41,142 434,143
Class I 46,350 533,377 23,183 252,673
Class R1 38,260 425,027 103,784 1,113,450
Class R2 98,379 1,095,739 93,891 1,005,904
Class R3 380,774 4,256,289 489,382 5,228,394
Class R4 149,478 1,668,401 719,197 7,702,614
Class R5 38,338 428,749 -- --
- ----------------------------------------------------------------------------------------------------------------------------------
1,106,651 $12,378,981 1,788,044 $19,101,956
Shares issued to shareholders in reinvestment of distributions
Class A -- $-- 4,072 $43,692
Class B -- -- 655 7,005
Class C -- -- 543 5,726
Class I -- -- 588 6,317
Class R1 -- -- 726 7,749
Class R2 -- -- 683 7,241
Class R3 -- -- 3,077 32,957
Class R4 -- -- 3,893 41,736
Class R5 -- -- 105 1,132
- ----------------------------------------------------------------------------------------------------------------------------------
-- $-- 14,342 $153,555
Shares reacquired
Class A (277,629) $(3,104,589) (37,504) $(402,995)
Class B (6,331) (70,207) (5,543) (59,870)
Class C (6,381) (71,731) (3,550) (37,742)
Class I (46,158) (530,983) (67) (704)
Class R1 (16,969) (188,208) (37,371) (403,904)
Class R2 (42,416) (474,053) (26,636) (288,002)
Class R3 (56,880) (636,126) (264,501) (2,858,523)
Class R4 (64,496) (724,052) (352,668) (3,826,034)
Class R5 (6) (63) -- --
- ----------------------------------------------------------------------------------------------------------------------------------
(517,266) $(5,800,012) (727,840) $(7,877,774)
Net change
Class A 31,998 $358,921 230,995 $2,447,827
Class B 7,985 88,438 48,150 504,783
Class C 24,748 277,513 38,135 402,127
Class I 192 2,394 23,704 258,286
Class R1 21,291 236,819 67,139 717,295
Class R2 55,963 621,686 67,938 725,143
Class R3 323,894 3,620,163 227,958 2,402,828
Class R4 84,982 944,349 370,422 3,918,316
Class R5 38,332 428,686 105 1,132
- ----------------------------------------------------------------------------------------------------------------------------------
589,385 $6,578,969 1,074,546 $11,377,737
(c) For the period from the commencement of the fund's investment operations, September 29, 2005, through the stated period end.
MFS(R) LIFETIME 2020 FUND
SIX MONTHS ENDED 10/31/07 YEAR ENDED 4/30/07
SHARES AMOUNT SHARES AMOUNT
Shares sold
Class A 562,894 $6,788,195 585,641 $6,512,936
Class B 99,266 1,184,274 232,053 2,540,881
Class C 67,970 819,963 90,436 1,014,495
Class I 97,882 1,205,392 20,956 235,107
Class R1 157,457 1,869,689 279,678 3,148,128
Class R2 336,236 4,024,483 312,434 3,500,078
Class R3 634,884 7,643,585 1,471,113 16,430,150
Class R4 545,624 6,559,912 1,639,099 18,246,921
Class R5 152,702 1,819,136 -- --
- ----------------------------------------------------------------------------------------------------------------------------------
2,654,915 $31,914,629 4,631,410 $51,628,696
Shares issued to shareholders in reinvestment of distributions
Class A -- $-- 9,229 $103,824
Class B -- -- 2,925 32,823
Class C -- -- 705 7,899
Class I -- -- 765 8,625
Class R1 -- -- 1,921 21,536
Class R2 -- -- 2,079 23,293
Class R3 -- -- 9,921 111,415
Class R4 -- -- 12,871 144,803
Class R5 -- -- 99 1,031
- ----------------------------------------------------------------------------------------------------------------------------------
-- $-- 40,515 $455,249
Shares reacquired
Class A (565,267) $(6,775,469) (154,626) $(1,715,296)
Class B (54,016) (642,610) (37,514) (417,812)
Class C (13,869) (164,212) (6,830) (76,356)
Class I (71,609) (888,669) -- --
Class R1 (17,312) (207,844) (115,954) (1,312,659)
Class R2 (128,255) (1,558,838) (103,006) (1,183,914)
Class R3 (213,765) (2,540,052) (710,799) (8,152,127)
Class R4 (217,307) (2,613,704) (832,856) (9,479,772)
Class R5 (9,772) (117,166) -- --
- ----------------------------------------------------------------------------------------------------------------------------------
(1,291,172) $(15,508,564) (1,961,585) $(22,337,936)
Net change
Class A (2,373) $12,726 440,244 $4,901,464
Class B 45,250 541,664 197,464 2,155,892
Class C 54,101 655,751 84,311 946,038
Class I 26,273 316,723 21,721 243,732
Class R1 140,145 1,661,845 165,645 1,857,005
Class R2 207,981 2,465,645 211,507 2,339,457
Class R3 421,119 5,103,533 770,235 8,389,438
Class R4 328,317 3,946,208 819,114 8,911,952
Class R5 142,930 1,701,970 99 1,031
- ----------------------------------------------------------------------------------------------------------------------------------
1,363,743 $16,406,065 2,710,340 $29,746,009
MFS(R) LIFETIME 2030 FUND
SIX MONTHS ENDED 10/31/07 YEAR ENDED 4/30/07
SHARES AMOUNT SHARES AMOUNT
Shares sold
Class A 351,585 $4,379,178 358,111 $4,013,611
Class B 59,870 746,413 82,109 901,162
Class C 15,912 195,757 30,930 358,010
Class I 99,072 1,263,326 53,625 626,320
Class R1 120,664 1,489,954 147,987 1,693,158
Class R2 205,482 2,585,508 158,545 1,808,480
Class R3 703,474 8,787,837 845,772 9,617,269
Class R4 243,028 3,027,837 1,331,896 14,862,490
Class R5 128,995 1,587,629 -- --
- ----------------------------------------------------------------------------------------------------------------------------------
1,928,082 $24,063,439 3,008,975 $33,880,500
Shares issued to shareholders in reinvestment of distributions
Class A -- $-- 3,051 $34,988
Class B -- -- 654 7,477
Class C -- -- 63 724
Class I -- -- 991 11,388
Class R1 -- -- 566 6,469
Class R2 -- -- 247 2,787
Class R3 -- -- 3,529 40,371
Class R4 -- -- 6,084 69,662
Class R5 -- -- 63 723
- ----------------------------------------------------------------------------------------------------------------------------------
-- $-- 15,248 $174,589
Shares reacquired
Class A (350,960) $(4,342,114) (34,360) $(380,460)
Class B (17,475) (216,124) (13,008) (145,134)
Class C (4,577) (55,125) (4,410) (46,709)
Class I (127,919) (1,619,015) (10,702) (116,520)
Class R1 (10,879) (132,747) (66,895) (777,313)
Class R2 (10,212) (128,364) (71,853) (810,861)
Class R3 (184,131) (2,294,962) (389,026) (4,537,056)
Class R4 (51,191) (636,102) (699,350) (7,984,860)
Class R5 (153) (1,920) -- --
- ----------------------------------------------------------------------------------------------------------------------------------
(757,497) $(9,426,473) (1,289,604) $(14,798,913)
Net change
Class A 625 $37,064 326,802 $3,668,139
Class B 42,395 530,289 69,755 763,505
Class C 11,335 140,632 26,583 312,025
Class I (28,847) (355,689) 43,914 521,188
Class R1 109,785 1,357,207 81,658 922,314
Class R2 195,270 2,457,144 86,939 1,000,406
Class R3 519,343 6,492,875 460,275 5,120,584
Class R4 191,837 2,391,735 638,630 6,947,292
Class R5 128,842 1,585,709 63 723
- ----------------------------------------------------------------------------------------------------------------------------------
1,170,585 $14,636,966 1,734,619 $19,256,176
MFS(R) LIFETIME 2040 FUND
SIX MONTHS ENDED 10/31/07 YEAR ENDED 4/30/07(c)
SHARES AMOUNT SHARES AMOUNT
Shares sold
Class A 228,089 $2,847,665 254,232 $2,861,342
Class B 37,260 467,861 64,960 716,843
Class C 16,421 206,717 11,253 124,480
Class I 149,302 1,903,482 45,535 503,905
Class R1 45,470 564,214 69,138 800,048
Class R2 95,664 1,197,913 73,002 839,630
Class R3 237,095 2,964,335 469,802 5,339,483
Class R4 223,902 2,793,612 393,143 4,414,689
Class R5 94,317 1,160,128 -- --
- ----------------------------------------------------------------------------------------------------------------------------------
1,127,520 $14,105,927 1,381,065 $15,600,420
Shares issued to shareholders in reinvestment of distributions
Class A -- $-- 2,391 $27,497
Class B -- -- 494 5,676
Class C -- -- 66 759
Class I -- -- 1,013 11,695
Class R1 -- -- 228 2,611
Class R2 -- -- 301 3,430
Class R3 -- -- 1,779 20,445
Class R4 -- -- 1,728 19,893
Class R5 -- -- 63 632
- ----------------------------------------------------------------------------------------------------------------------------------
-- $-- 8,063 $92,638
Shares reacquired
Class A (282,783) $(3,513,723) (31,782) $(366,598)
Class B (8,168) (101,229) (15,510) (172,227)
Class C (4,901) (62,528) (1,725) (17,691)
Class I (114,384) (1,467,912) (17,331) (198,751)
Class R1 (4,617) (57,513) (19,210) (223,486)
Class R2 (21,117) (267,694) (22,231) (265,456)
Class R3 (70,456) (867,180) (198,197) (2,306,144)
Class R4 (71,038) (888,969) (216,855) (2,493,774)
Class R5 (1,095) (14,157) -- --
- ----------------------------------------------------------------------------------------------------------------------------------
(578,559) $(7,240,905) (522,841) $(6,044,127)
Net change
Class A (54,694) $(666,058) 224,841 $2,522,241
Class B 29,092 366,632 49,944 550,292
Class C 11,520 144,189 9,594 107,548
Class I 34,918 435,570 29,217 316,849
Class R1 40,853 506,701 50,156 579,173
Class R2 74,547 930,219 51,072 577,604
Class R3 166,639 2,097,155 273,384 3,053,784
Class R4 152,864 1,904,643 178,016 1,940,808
Class R5 93,222 1,145,971 63 632
- ----------------------------------------------------------------------------------------------------------------------------------
548,961 $6,865,022 866,287 $9,648,931
(c) For the period from the commencement of the fund's investment operations, September 29, 2005, through the stated period end.
(6) LINE OF CREDIT
Each fund and other funds managed by MFS participate in a $1 billion unsecured committed line of credit provided by a syndication
of banks under a credit agreement. In addition, each fund and other funds managed by MFS have established uncommitted borrowing
arrangements with certain banks. 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 Federal Reserve funds rate plus 0.30%. In addition, a commitment fee, based on
the average daily, unused portion of the committed line of credit, is allocated among the participating funds at the end of each
calendar quarter. For the six months ended October 31, 2007, each fund's commitment fee and interest expense was equal to the
following and is included in the miscellaneous expense on the Statement of Operations.
MFS LIFETIME
RETIREMENT MFS LIFETIME MFS LIFETIME MFS LIFETIME MFS LIFETIME
INCOME FUND 2010 FUND 2020 FUND 2030 FUND 2040 FUND
Commitment Fee $16 $26 $80 $47 $26
Interest Expense $-- $-- $146 $-- $--
(7) TRANSACTIONS IN UNDERLYING FUNDS - AFFILIATED ISSUERS
An affiliated issuer may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company
which is under common control. For the purposes of the report, the fund assumes the following to be affiliated issuers:
MFS LIFETIME RETIREMENT INCOME FUND
BEGINNING ACQUISITIONS DISPOSITIONS ENDING
SHARE/PAR SHARE/PAR SHARE/PAR SHARE/PAR
UNDERLYING FUNDS AMOUNT AMOUNT AMOUNT AMOUNT
MFS Floating Rate High Income Fund 68,698 148,623 (53,482) 163,839
MFS Government Securities Fund 73,412 149,306 (55,816) 166,902
MFS Inflation-Adjusted Bond Fund 71,055 143,770 (56,059) 158,766
MFS Intermediate Investment Grade Bond Fund 105,333 27,960 (133,293) --
MFS Limited Maturity Fund 216,462 444,782 (160,575) 500,669
MFS Money Market Fund 692,694 1,408,326 (508,588) 1,592,432
MFS Research Bond Fund 34,584 374,689(i) (89,950) 319,323
MFS Research Fund 26,572 54,904 (25,017) 56,459
MFS Value Fund 24,266 50,948 (21,406) 53,808
REALIZED CAPITAL GAIN DIVIDEND ENDING
UNDERLYING FUNDS GAIN (LOSS) DISTRIBUTIONS INCOME VALUE
MFS Floating Rate High Income Fund $(16,795) $-- $37,290 $1,594,155
MFS Government Securities Fund 1,898 -- 26,766 1,585,568
MFS Inflation-Adjusted Bond Fund 6,095 -- 20,658 1,582,894
MFS Intermediate Investment Grade Bond Fund (370) -- 9,762 --
MFS Limited Maturity Fund (2,608) -- 57,751 3,174,242
MFS Money Market Fund -- -- 27,853 1,592,432
MFS Research Bond Fund (3,530) -- 49,400 3,167,680
MFS Research Fund 68,634 -- -- 1,604,575
MFS Value Fund 54,985 -- 7,909 1,602,928
- -----------------------------------------------------------------------------------------------------------------------------------
$108,309 -- $237,389 $15,904,474
MFS LIFETIME 2010 FUND
BEGINNING ACQUISITIONS DISPOSITIONS ENDING
SHARE/PAR SHARE/PAR SHARE/PAR SHARE/PAR
UNDERLYING FUNDS AMOUNT AMOUNT AMOUNT AMOUNT
MFS Core Growth Fund -- 30,687(i) (3,442) 27,245
MFS Floating Rate High Income Fund 43,564 49,944 (2,729) 90,779
MFS Government Securities Fund 147,872 95,303 (20,311) 222,864
MFS Inflation-Adjusted Bond Fund 45,071 48,187 (4,781) 88,477
MFS Intermediate Investment Grade Bond Fund 212,390 35,867 (248,257) --
MFS Limited Maturity Fund 436,230 286,696 (54,829) 668,097
MFS Money Market Fund 1,396,097 890,629 (167,357) 2,119,369
MFS Research Bond Fund 69,666 391,003 (33,762) 426,907
MFS Research Fund 71,644 35,131 (10,020) 96,755
MFS Research International Fund 22,616 8,844 (4,428) 27,032
MFS Strategic Growth Fund 21,444 2,565 (24,009) --
MFS Value Fund 65,455 34,751 (7,995) 92,211
REALIZED CAPITAL GAIN DIVIDEND ENDING
UNDERLYING FUNDS GAIN (LOSS) DISTRIBUTIONS INCOME VALUE
MFS Core Growth Fund $11,012 $-- $-- $625,278
MFS Floating Rate High Income Fund (408) -- 21,111 883,276
MFS Government Securities Fund 451 -- 41,545 2,117,206
MFS Inflation-Adjusted Bond Fund 472 -- 11,622 882,112
MFS Intermediate Investment Grade Bond Fund (115) -- 18,886 --
MFS Limited Maturity Fund (69) -- 90,334 4,235,736
MFS Money Market Fund -- -- 42,905 2,119,369
MFS Research Bond Fund (902) -- 72,984 4,234,922
MFS Research Fund 43,693 -- -- 2,749,769
MFS Research International Fund 10,355 -- -- 630,663
MFS Strategic Growth Fund 2,047 -- -- --
MFS Value Fund 31,890 -- 16,657 2,746,975
- -----------------------------------------------------------------------------------------------------------------------------------
$98,426 $-- $316,044 $21,225,306
MFS LIFETIME 2020 FUND
BEGINNING ACQUISITIONS DISPOSITIONS ENDING
SHARE/PAR SHARE/PAR SHARE/PAR SHARE/PAR
UNDERLYING FUNDS AMOUNT AMOUNT AMOUNT AMOUNT
MFS Core Growth Fund -- 354,853(i) (19,520) 335,333
MFS Government Securities Fund 283,214 186,381 (27,429) 442,166
MFS High Income Fund 512,447 330,160 (58,778) 783,829
MFS Intermediate Investment Grade Bond Fund 129,888 38,765 (168,653) --
MFS International New Discovery Fund 45,226 17,188 (9,438) 52,976
MFS Mid Cap Growth Fund 327,283 149,660 (41,710) 435,233
MFS Mid Cap Value Fund 216,274 112,641 (24,208) 304,707
MFS Money Market Fund 640,381 647,189 (51,535) 1,236,035
MFS Research Bond Fund 405,732 492,976 (51,899) 846,809
MFS Research Fund 179,015 92,370 (18,436) 252,949
MFS Research International Fund 257,478 113,087 (38,347) 332,218
MFS Strategic Growth Fund 243,199 44,285 (287,484) --
MFS Value Fund 211,960 109,110 (21,585) 299,485
REALIZED CAPITAL GAIN DIVIDEND ENDING
UNDERLYING FUNDS GAIN (LOSS) DISTRIBUTIONS INCOME VALUE
MFS Core Growth Fund $42,928 $-- $-- $7,695,895
MFS Government Securities Fund (1,052) -- 85,166 4,200,578
MFS High Income Fund (1,022) -- 109,006 2,970,713
MFS Intermediate Investment Grade Bond Fund (387) -- 12,806 --
MFS International New Discovery Fund 34,757 -- -- 1,752,455
MFS Mid Cap Growth Fund 33,668 -- -- 4,709,224
MFS Mid Cap Value Fund 34,073 -- -- 4,710,770
MFS Money Market Fund -- -- 23,504 1,236,035
MFS Research Bond Fund (7,288) -- 171,226 8,400,345
MFS Research Fund 69,102 -- -- 7,188,811
MFS Research International Fund 66,918 -- -- 7,750,635
MFS Strategic Growth Fund 21,369 -- -- --
MFS Value Fund 80,303 -- 55,414 8,921,657
- -----------------------------------------------------------------------------------------------------------------------------------
$373,369 $-- $457,122 $59,537,118
MFS LIFETIME 2030 FUND
BEGINNING ACQUISITIONS DISPOSITIONS ENDING
SHARE/PAR SHARE/PAR SHARE/PAR SHARE/PAR
UNDERLYING FUNDS AMOUNT AMOUNT AMOUNT AMOUNT
MFS Core Growth Fund -- 356,579(i) (16,876) 339,703
MFS Government Securities Fund 20,457 26,865 (2,745) 44,577
MFS High Income Fund 48,714 68,263 (4,435) 112,542
MFS International New Discovery Fund 73,492 45,848 (7,926) 111,414
MFS Mid Cap Growth Fund 334,862 216,692 (21,027) 530,527
MFS Mid Cap Value Fund 220,833 162,179 (11,777) 371,235
MFS New Discovery Fund 47,769 29,251 (4,433) 72,587
MFS Research Bond Fund 38,538 51,628 (4,753) 85,413
MFS Research Fund 93,550 57,029 (5,891) 144,688
MFS Research International Fund 124,964 82,830 (13,055) 194,739
MFS Strategic Growth Fund 211,134 37,288 (248,422) --
MFS Value Fund 128,120 87,523 (8,607) 207,036
REALIZED CAPITAL GAIN DIVIDEND ENDING
UNDERLYING FUNDS GAIN (LOSS) DISTRIBUTIONS INCOME VALUE
MFS Core Growth Fund $36,788 $-- $-- $7,796,181
MFS Government Securities Fund (42) -- 7,128 423,482
MFS High Income Fund (639) -- 12,603 426,536
MFS International New Discovery Fund 29,174 -- -- 3,685,563
MFS Mid Cap Growth Fund 15,475 -- -- 5,740,296
MFS Mid Cap Value Fund 8,188 -- -- 5,739,296
MFS New Discovery Fund 10,579 -- -- 1,628,858
MFS Research Bond Fund (720) -- 15,359 847,300
MFS Research Fund 19,402 -- -- 4,112,034
MFS Research International Fund 23,944 -- -- 4,543,251
MFS Strategic Growth Fund 829 -- -- --
MFS Value Fund 22,712 -- 35,421 6,167,605
- -----------------------------------------------------------------------------------------------------------------------------------
$165,690 $-- $70,511 $41,110,402
MFS LIFETIME 2040 FUND
BEGINNING ACQUISITIONS DISPOSITIONS ENDING
SHARE/PAR SHARE/PAR SHARE/PAR SHARE/PAR
UNDERLYING FUNDS AMOUNT AMOUNT AMOUNT AMOUNT
MFS Core Growth Fund -- 197,791(i) (12,982) 184,809
MFS International New Discovery Fund 43,603 24,934 (4,298) 64,239
MFS Mid Cap Growth Fund 192,407 120,593 (19,132) 293,868
MFS Mid Cap Value Fund 127,196 89,330 (11,025) 205,501
MFS New Discovery Fund 30,957 20,834 (4,066) 47,725
MFS Research Fund 51,050 28,614 (5,110) 74,554
MFS Research International Fund 63,290 34,589 (6,597) 91,282
MFS Strategic Growth Fund 119,916 27,611 (147,527) --
MFS Value Fund 69,916 42,964 (6,279) 106,601
REALIZED CAPITAL GAIN DIVIDEND ENDING
UNDERLYING FUNDS GAIN (LOSS) DISTRIBUTIONS INCOME VALUE
MFS Core Growth Fund $29,499 $-- $-- $4,241,361
MFS International New Discovery Fund 16,414 -- -- 2,125,013
MFS Mid Cap Growth Fund 18,381 -- -- 3,179,652
MFS Mid Cap Value Fund 16,023 -- -- 3,177,051
MFS New Discovery Fund 12,458 -- -- 1,070,950
MFS Research Fund 20,179 -- -- 2,118,811
MFS Research International Fund 12,104 -- -- 2,129,606
MFS Strategic Growth Fund 1,267 -- -- --
MFS Value Fund 22,073 -- 19,535 3,175,658
- -----------------------------------------------------------------------------------------------------------------------------------
$148,398 $-- $19,535 $21,218,102
(i) The acquisition shares for MFS Lifetime Retirement Income Fund include shares received in the merger of MFS Intermediate
Investment Grade Bond Fund into MFS Research Bond Fund on June 22, 2007. The acquisition shares for MFS Lifetime 2010 Fund, MFS
Lifetime 2020 Fund, MFS Lifetime 2030 Fund, and MFS Lifetime 2040 Fund include shares received in the merger of MFS Strategic
Growth Fund into MFS Core Growth Fund on June 22, 2007.
BOARD REVIEW OF INVESTMENT ADVISORY AGREEMENT
MFS LIFETIME FUNDS
MFS LIFETIME RETIREMENT INCOME FUND
MFS LIFETIME 2010 FUND
MFS LIFETIME 2020 FUND
MFS LIFETIME 2030 FUND
MFS LIFETIME 2040 FUND
The Investment Company Act of 1940 requires that both the full Board of
Trustees and a majority of the non-interested ("independent") Trustees, voting
separately, annually approve the continuation of the Funds' investment advisory
agreement with MFS. The Trustees consider matters bearing on the Funds and
their investment advisory arrangements at their meetings throughout the year,
including a review of the 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, 2007 ("contract review meetings")
for the specific purpose of considering whether to approve the continuation of
the investment advisory agreements for the Funds and the other investment
companies that the Board oversees (the "MFS Funds"). The independent Trustees
were assisted in their evaluation of the Funds' 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 Chief Compliance Officer, a full-time 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 Funds 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 Funds.
In connection with their contract review meetings, the Trustees received and
relied upon materials that included, among other items: (i) information
provided by Lipper Inc. on the investment performance of the Funds for the
one-year period ended December 31, 2006 and the investment performance of a
group of funds with substantially similar investment classifications/
objectives (the "Lipper performance universe"), as well as the investment
performance of a group of funds identified by objective criteria suggested by
MFS ("MFS peer funds"), (ii) information provided by Lipper Inc. on the Funds'
fees and expenses and the fees and expenses of comparable funds identified by
Lipper (the "Lipper expense group"), as well as the fees and expenses of MFS
peer funds, (iii) information as to whether and to what extent applicable
expense waivers and reimbursements are observed for the Funds, (iv) information
regarding MFS' financial results and financial condition, including MFS' and
certain of its affiliates' estimated profitability from services performed for
the Funds and for the MFS Funds as a whole, (v) MFS' views regarding the
outlook for the mutual fund industry and the strategic business plans of MFS,
(vi) descriptions of various functions performed by MFS for the Funds, such as
compliance monitoring and portfolio trading practices, and (vii) 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 Funds and the other MFS Funds. The
comparative performance, fee and expense information prepared and provided by
Lipper Inc. 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
agreements 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
Funds 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.
MFS LIFETIME RETIREMENT INCOME FUND
Based on information provided by Lipper Inc. and MFS, the Trustees reviewed the
total return investment performance of the Fund's Class A shares as well as the
performance of peer groups of funds for the one-year period ended December 31,
2006. The total return performance of the Fund's Class A shares was in the 4th
quintile relative to the other funds in the universe for the one-year period
(the 1st quintile being the best performers and the 5th quintile being the
worst performers).
MFS LIFETIME 2010 FUND
Based on information provided by Lipper Inc. and MFS, the Trustees reviewed the
total return investment performance of the Fund's Class A shares as well as the
performance of peer groups of funds for the one-year period ended December 31,
2006. The total return performance of the Fund's Class A shares was in the 4th
quintile relative to the other funds in the universe for the one-year period
(the 1st quintile being the best performers and the 5th quintile being the
worst performers).
MFS LIFETIME 2020 FUND
Based on information provided by Lipper Inc. and MFS, the Trustees reviewed the
total return investment performance of the Fund's Class A shares as well as the
performance of peer groups of funds for the one-year period ended December 31,
2006. The total return performance of the Fund's Class A shares was in the 2nd
quintile relative to the other funds in the universe for the one-year period
(the 1st quintile being the best performers and the 5th quintile being the
worst performers).
MFS LIFETIME 2030 FUND
Based on information provided by Lipper Inc. and MFS, the Trustees reviewed the
total return investment performance of the Fund's Class A shares as well as the
performance of peer groups of funds for the one-year period ended December 31,
2006. The total return performance of the Fund's Class A shares was in the 4th
quintile relative to the other funds in the universe for the one-year period
(the 1st quintile being the best performers and the 5th quintile being the
worst performers).
MFS LIFETIME 2040 FUND
Based on information provided by Lipper Inc. and MFS, the Trustees reviewed the
total return investment performance of the Fund's Class A shares as well as the
performance of peer groups of funds for the one-year period ended December 31,
2006. The total return performance of the Fund's Class A shares was in the 5th
quintile relative to the other funds in the universe for the one-year period
(the 1st quintile being the best performers and the 5th quintile being the
worst performers).
GENERAL
Each Fund commenced investment operations on September 29, 2005; therefore, no
performance data for the three- or five-year period was available. Because of
the passage of time, this performance may differ from performance results for
more recent periods, including those shown elsewhere in this report.
In the course of their deliberations, the Trustees took into account the
limited operating history of the Funds and 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. After reviewing these and related factors, the Trustees concluded,
within the context of their overall conclusions regarding the investment
advisory agreements, that they were satisfied with MFS' responses and efforts
relating to investment performance.
The Trustees considered that MFS does not charge any advisory fees for
providing investment advisory services to the Funds, but that the Funds pay
their pro rata share of the advisory fees paid by the underlying funds in which
they invest (the "Underlying Funds"). The Trustees also considered that MFS
currently observes an expense limitation for the Funds.
In assessing the reasonableness of the Funds' expenses the Trustees considered,
among other information, the total expense ratios of the Funds' Class A shares
as a percentage of average daily net assets and the total expense ratios of
peer groups of funds based on information provided by Lipper Inc. and MFS,
noting that the Funds' total expense ratios were expected to be relatively low
because, as noted above, the Funds do not bear advisory expenses. The Trustees
considered that, according to the Lipper data (which takes into account the
expense limitation): (i) the MFS Lifetime Retirement Income Fund's total
expense ratio was lower than the Lipper expense group median; (ii) the MFS
Lifetime 2010 Fund's total expense ratio was higher than the Lipper expense
group median; (iii) the MFS Lifetime 2020 Fund's total expense ratio was higher
than the Lipper expense group median; (iv) the MFS Lifetime 2030 Fund's total
expense ratio was higher than the Lipper expense group median; and (iv) the MFS
Lifetime 2040 Fund's total expense ratio was higher than the Lipper expense
group median. Because the Funds do not pay advisory fees, the Trustees did not
consider the extent to which economies of scale would be realized due to the
Funds' growth of assets, whether fee levels reflect economies of scale for Fund
shareholders, or the fees paid by similar funds to other investment advisers or
by similar clients of MFS.
The Trustees also considered information prepared by MFS relating to MFS' costs
and profits with respect to the Funds, 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
Funds and other accounts and products for purposes of estimating profitability.
In addition, the Trustees considered MFS' resources and related efforts to
continue to retain, attract and motivate capable personnel to serve the Funds.
The Trustees also considered current and developing conditions in the financial
services industry, including the entry into the industry 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
Funds 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
Funds by MFS and its affiliates under agreements and plans other than the
investment advisory agreement, including any 12b-1 fees the Funds pay 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 Funds' or the Underlying Funds' 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 and sub-custodians. The Trustees concluded that the various
non-advisory services provided by MFS and its affiliates on behalf of the Funds
were satisfactory.
The Trustees also considered benefits to MFS from the use of the Underlying
Funds' portfolio brokerage commissions, if applicable, to pay for investment
research and other similar services (excluding third-party research, for which
MFS pays directly), and various other factors. Additionally, the Trustees
considered so-called "fall-out benefits" to MFS such as reputational value
derived from serving as investment manager to the Funds.
Based on their evaluation of factors that they deemed to be material, including
those factors described above, the Board of Trustees, including a majority of
the independent Trustees, concluded that the Funds' investment advisory
agreement with MFS should be approved for an additional one-year period,
commencing August 1, 2007.
A discussion regarding the Board's most recent review and renewal of each
Fund's investment advisory agreement is available by clicking on the fund's
name under "Select a fund" on the MFS Web site (mfs.com).
PROXY VOTING POLICIES AND INFORMATION
A general description of the MFS funds' proxy voting policies and procedures is
available without charge, upon request, by calling 1-800-225-2606, by visiting
the Proxy Voting section of mfs.com or by visiting the SEC's Web site at
http://www.sec.gov.
Information regarding how each fund voted proxies relating to portfolio
securities during the most recent twelve-month period ended June 30 is
available without charge by visiting the Proxy Voting section of mfs.com or by
visiting the SEC's Web site at http://www.sec.gov.
QUARTERLY PORTFOLIO DISCLOSURE
The trust will file a complete schedule of portfolio holdings with the
Securities and Exchange Commission (the Commission) for the first and third
quarters of each fiscal year on Form N-Q. The trust's Form N-Q may be reviewed
and copied at the:
Public Reference Room
Securities and Exchange Commission
100 F Street, NE, Room 1580
Washington, D.C. 20549
Information on the operation of the Public Reference Room may be obtained by
calling the Commission at 1-800-SEC-0330. The trust's Form N-Q is available on
the EDGAR database on the Commission's Internet Web site at http://
www.sec.gov, and copies of this information may be obtained, upon payment of a
duplicating fee, by electronic request at the following e-mail address:
publicinfo@sec.gov or by writing the Public Reference Section at the above
address.
A shareholder can also obtain the quarterly portfolio holdings report at
mfs.com.
CONTACT US
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WEB SITE Go paperless with eDELIVERY: Arrange to have
mfs.com MFS(R) send prospectuses, reports, and proxies
directly to your e-mail inbox. You'll get timely
MFS TALK information and less clutter in your mailbox (not
1-800-637-8255 to mention help your fund save printing and
24 hours a day postage costs).
ACCOUNT SERVICE AND SIGN UP: If your account is registered with us,
LITERATURE simply go to MFS.COM, log in to your account via
MFS(R) Access, and select the eDelivery sign up
SHAREHOLDERS options.
1-800-225-2606
8 a.m. to 8 p.m. ET If you own your MFS fund shares through a
financial institution or a retirement plan, MFS(R)
INVESTMENT PROFESSIONALS TALK, MFS Access, and eDelivery may not be
1-800-343-2829 available to you.
8 a.m. to 8 p.m. ET --------------------------------------------------
RETIREMENT PLAN SERVICES
1-800-637-1255
8 a.m. to 8 p.m. ET
MAILING ADDRESS
MFS Service Center, Inc.
P.O. Box 55824
Boston, MA 02205-5824
OVERNIGHT MAIL
MFS Service Center, Inc.
500 Boylston Street
Boston, MA 02116-3741
M F S(R)
INVESTMENT MANAGEMENT
ITEM 2. CODE OF ETHICS.
The Registrant has not amended any provision in its Code of Ethics (the "Code")
that relates to any element of the Code's definition enumerated in paragraph
(b) of Item 2 of this Form N-CSR.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for semi-annual reports.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable for semi-annual reports.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to the Registrant.
ITEM 6. SCHEDULE OF INVESTMENTS
A schedule of investments for each series of the Registrant is included as part
of the report to shareholders of such series under Item 1 of this Form N-CSR.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the Registrant.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the Registrant.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable to the Registrant.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There were no material changes to the procedures by which shareholders may send
recommendations to the Board for nominees to the Registrant's Board since the
Registrant last provided disclosure as to such procedures in response to the
requirements of Item 407(c)(2)(iv) of Regulation S-K (as required by Item
22(b)(15) of Schedule 14A), or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Based upon their evaluation of the effectiveness of the registrant's
disclosure controls and procedures (as defined in Rule 30a-3(c) under the
Investment Company Act of 1940 (the "Act")) as conducted within 90 days of
the filing date of this report on Form N-CSR, the registrant's principal
financial officer and principal executive officer have concluded that those
disclosure controls and procedures provide reasonable assurance that the
material information required to be disclosed by the registrant on this
report is recorded, processed, summarized and reported within the time
periods specified in the Securities and Exchange Commission's rules and
forms.
(b) There were no changes in the registrant's internal controls over financial
reporting (as defined in Rule 30a-3(d) under the Act) that occurred during
the second fiscal quarter of the period covered by the report that have
materially affected, or are reasonably likely to materially affect, the
registrant's internal control over financial reporting.
ITEM 12. EXHIBITS.
(a) File the exhibits listed below as part of this form. Letter or number the
exhibits in the sequence indicated.
(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant
intends to satisfy the Item 2 requirements through filing of an
exhibit.
(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2
under the Act (17 CFR 270.30a-2): Attached hereto.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the Act (17 CFR
270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17
CFR 240.13a-14(b) or 240.15d-14(b)) and Section 1350 of Chapter 63 of Title
18 of the United States Code (18 U.S.C. 1350) as an exhibit. A
certification furnished pursuant to this paragraph will not be deemed
"filed" for the purposes of Section 18 of the Exchange Act (15 U.S.C. 78r),
or otherwise subject to the liability of that section. Such certification
will not be deemed to be incorporated by reference into any filing under
the Securities Act of 1933 or the Exchange Act, except to the extent that
the registrant specifically incorporates it by reference: Attached hereto.
NOTICE
A copy of the 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 SERIES TRUST XII
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By (Signature and Title)* MARIA F. DWYER
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Maria F. Dwyer, President
Date: December 14, 2007
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* MARIA F. DWYER
-----------------------------------------------------
Maria F. Dwyer, President (Principal Executive
Officer)
Date: December 14, 2007
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By (Signature and Title)* TRACY ATKINSON
-----------------------------------------------------
Tracy Atkinson, Treasurer (Principal Financial Officer
and Accounting Officer)
Date: December 14, 2007
-----------------
* Print name and title of each signing officer under his or her signature.