Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21780
MFS SERIES TRUST XII
(Exact name of registrant as specified in charter)
500 Boylston Street, Boston, Massachusetts 02116
(Address of principal executive offices) (Zip code)
Susan S. Newton
Massachusetts Financial Services Company
500 Boylston Street
Boston, Massachusetts 02116
(Name and address of agents for service)
Registrant’s telephone number, including area code: (617) 954-5000
Date of fiscal year end: April 30*
Date of reporting period: April 30, 2011
| * | 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, MFS Lifetime 2040 Fund, and MFS Lifetime 2050 Fund. The remaining series of the Registrant, MFS Sector Rotational Fund, has a fiscal year end of October 31. |
Table of Contents
| ITEM 1. | REPORTS TO STOCKHOLDERS. |
Table of Contents
MFS® Lifetime® Funds
MFS® Lifetime® Retirement Income Fund
MFS® Lifetime® 2010 Fund
MFS® Lifetime® 2020 Fund
MFS® Lifetime® 2030 Fund
MFS® Lifetime® 2040 Fund
MFS® Lifetime® 2050 Fund
ANNUAL REPORT
April 30, 2011
LTF-ANN
Table of Contents
MFS® LIFETIME FUNDS
SIPC Contact Information: You may obtain information about the Securities Investor Protection Corporation (“SIPC”), including the SIPC Brochure, by contacting SIPC either by telephone (1-202-371-8300) or by accessing SIPC’s website address (www.sipc.org).
The report is prepared for the general information of shareholders.
It is authorized for distribution to prospective investors only when preceded or accompanied by a current prospectus.
NOT FDIC INSURED Ÿ MAY LOSE VALUE Ÿ NO BANK GUARANTEE
Table of Contents
Dear Shareholders:
After an extended rebound in the financial markets, uncertainty returned in 2010 as investors began to question the durability of the recovery for global economies and markets. That uncertainty led to
increased risk aversion, especially as investors saw the eurozone struggle with the debt woes of many of its members and amid a weakening trend in the global macroeconomic data. Last September, the U.S. Federal Reserve Board’s promises to further loosen monetary policy helped assuage market fears and drive asset prices off their recent lows. A combination of solid earnings and improving economic data gave an additional boost to investor sentiment. For 2011, we are cautiously optimistic
that economic growth will continue to improve and that the global economies will recover from the shocks of the past few years. We expect the pace of recovery worldwide to be uneven and volatile and acknowledge the elevated uncertainty created by events in Japan, Europe, and the Middle East.
As always, we continue to be mindful of the many economic challenges faced at the local, national, and international levels. It is in times such as these that we want to remind investors of the merits of maintaining a long-term view, adhering to basic investing principles such as asset allocation and diversification, and working closely with their advisors to research and identify appropriate investment opportunities.
Respectfully,
Robert J. Manning
Chairman and Chief Executive Officer
MFS Investment Management®
June 17, 2011
The opinions expressed in this letter are subject to change, may not be relied upon for investment advice, and no forecasts can be guaranteed.
1
Table of Contents
From time to time “Cash & Other Net Assets” may be negative due to timing of cash receipts and/or equivalent exposure from any derivative holdings.
Percentages are based on net assets as of 4/30/11.
The portfolio is actively managed and current holdings may be different.
2
Table of Contents
Portfolio Composition – continued
| (o) | Less than 0.1%. |
From time to time “Cash & Other Net Assets” may be negative due to timing of cash receipts and/or equivalent exposure from any derivative holdings.
Percentages are based on net assets as of 4/30/11.
The portfolio is actively managed and current holdings may be different.
3
Table of Contents
Portfolio Composition – continued
| (o) | Less than 0.1%. |
From time to time “Cash & Other Net Assets” may be negative due to timing of cash receipts and/or equivalent exposure from any derivative holdings.
Percentages are based on net assets as of 4/30/11.
The portfolio is actively managed and current holdings may be different.
4
Table of Contents
Portfolio Composition – continued
| (o) | Less than 0.1%. |
From time to time “Cash & Other Net Assets” may be negative due to timing of cash receipts and/or equivalent exposure from any derivative holdings.
Percentages are based on net assets as of 4/30/11.
The portfolio is actively managed and current holdings may be different.
5
Table of Contents
Portfolio Composition – continued
| (o) | Less than 0.1%. |
From time to time “Cash & Other Net Assets” may be negative due to timing of cash receipts and/or equivalent exposure from any derivative holdings.
Percentages are based on net assets as of 4/30/11.
The portfolio is actively managed and current holdings may be different.
6
Table of Contents
Portfolio Composition – continued
From time to time “Cash & Other Net Assets” may be negative due to timing of cash receipts and/or equivalent exposure from any derivative holdings.
Percentages are based on net assets as of 4/30/11.
The portfolio is actively managed and current holdings may be different.
7
Table of Contents
Market environment
After about a year of almost uninterrupted macroeconomic and financial market improvement following the global credit crisis, the second and third quarters of 2010 witnessed heightened risk aversion. This “risk-off” environment derived from a much greater concern surrounding the public-debt profiles of several of the peripheral European countries, as well as a weakening trend in global macroeconomic data. These two dynamics caused most asset prices to retrench significantly, as many questioned the durability of the global recovery.
Towards the middle of the period, the U.S. Federal Reserve (the Fed) indicated that further monetary loosening would be forthcoming if macroeconomic activity did not show signs of improvement. The prospects for, and subsequent implementation of, more easing by the Fed improved market sentiment and drove risk-asset prices markedly higher. The December agreement on a surprisingly large (relative to expectations) expansionary U.S. fiscal package also boosted sentiment. During the subsequent several months, the renewed positive market sentiment, coupled with better indications of global macroeconomic activity, pushed many asset valuations to post-crisis highs. At the same time, global sovereign bond yields initially rose amidst the more “risk-seeking” environment, but fell modestly as the period came to a close.
MFS Lifetime Retirement Income Fund
Summary of results
For the twelve months ended April 30, 2011, Class A shares of the MFS Lifetime Retirement Income Fund (the “fund”) provided a total return of 9.81%, at net asset value. This compares with a return of 5.36% for the fund’s benchmark, the Barclays Capital U.S. Aggregate Bond Index. The fund’s other benchmark, the MFS Lifetime Retirement Income Fund Blended Index (the “Blended Index”), generated a return of 9.02%. The Blended Index reflects the blended returns of equity and fixed income market indices, with percentage allocations to each index designed to resemble the equity and fixed income allocations of the fund. The market indices and related percentage allocations used to compile the Blended Index are set forth in the Performance Summary.
Contributors to performance
The fund’s allocation to equity funds, particularly the MFS Research Fund, MFS New Discovery Fund, and MFS Mid Cap Growth Fund, was the principal contributor to performance relative to the Blended Index. The fund’s investment in the MFS Research International Fund and MFS Mid Cap Value Fund further supported positive results.
Detractors from performance
During the reporting period, the fund’s allocation to fixed income funds, particularly to the MFS Limited Maturity Fund, detracted from performance relative to the Blended Index.
MFS Lifetime 2010 Fund
Summary of results
For the twelve months ended April 30, 2011, Class A shares of the MFS Lifetime 2010 Fund (the “fund”) provided a total return of 9.73%, at net asset value. This compares with a return of 5.36% for the fund’s benchmark, the Barclays Capital U.S. Aggregate Bond Index. The fund’s other benchmark, the MFS Lifetime 2010 Fund Blended Index (the “Blended Index”), generated a return of 8.91%. The Blended Index reflects the blended returns of equity and fixed income market indices, with percentage allocations to each index designed to resemble the equity and fixed income allocations of the fund. The market indices and related percentage allocations used to compile the Blended Index are set forth in the Performance Summary.
Contributors to performance
During the reporting period, the principal contributor to performance relative to the Blended Index was the fund’s allocation to equity funds, particularly the MFS Research Fund, MFS New Discovery Fund, and MFS Mid Cap Growth Fund. The fund’s investment in the MFS Research International Fund and MFS Mid Cap Value Fund, which outperformed the broader market, was also positive for relative returns.
Detractors from performance
The fund’s allocation to several fixed income funds, particularly to the MFS Limited Maturity Fund and the MFS Research Bond Fund, detracted from performance relative to the Blended Index.
MFS Lifetime 2020 Fund
Summary of results
For the twelve months ended April 30, 2011, Class A shares of the MFS Lifetime 2020 Fund (the “fund”) provided a total return of 15.11%, at net asset value. This compares with a return of 17.22% for the fund’s benchmark, the Standard & Poor’s 500
8
Table of Contents
Management Review – continued
Stock Index. The fund’s other benchmark, the MFS Lifetime 2020 Fund Blended Index (the “Blended Index”), generated a return of 13.05%. The Blended Index reflects the blended returns of equity and fixed income market indices, with percentage allocations to each index designed to resemble the equity and fixed income allocations of the fund. The market indices and related percentage allocations used to compile the Blended Index are set forth in the Performance Summary.
Detractors from performance
The principal detractor from the fund’s performance relative to the Blended Index was the fund’s allocation to fixed income funds, particularly to the MFS Government Securities Fund, MFS Global Bond Fund, and MFS Research Bond Fund.
Contributors to performance
During the reporting period, the fund’s allocation to equity funds, particularly the MFS Mid Cap Growth Fund, MFS Mid Cap Value Fund, and MFS Research International Fund contributed to relative performance. The fund’s investment in the MFS New Discovery Fund, which significantly outperformed its respective benchmark, the Russell 2000 Growth Index, was also a positive contributor to relative returns.
MFS Lifetime 2030 Fund
Summary of results
For the twelve months ended April 30, 2011, Class A shares of the MFS Lifetime 2030 Fund (the “fund”) provided a total return of 19.70%, at net asset value. This compares with a return of 17.22% for the fund’s benchmark, the Standard & Poor’s 500 Stock Index. The fund’s other benchmark, the MFS Lifetime 2030 Fund Blended Index (the “Blended Index”), generated a return of 17.07%. The Blended Index reflects the blended returns of equity and fixed income market indices, with percentage allocations to each index designed to resemble the equity and fixed income allocations of the fund. The market indices and related percentage allocations used to compile the Blended Index are set forth in the Performance Summary.
Contributors to performance
During the reporting period, the principal contributor to performance relative to the Blended Index was the fund’s allocation to equity funds, particularly to the MFS New Discovery Fund, MFS Mid Cap Growth Fund, MFS Mid Cap Value Fund, and MFS Research International Fund.
Detractors from performance
The fund’s allocation to fixed income funds, particularly to the MFS Global Bond Fund and MFS Inflation-Adjusted Bond Fund held back performance relative to the Blended Index.
MFS Lifetime 2040 Fund
Summary of results
For the twelve months ended April 30, 2011, Class A shares of the MFS Lifetime 2040 Fund (the “fund”) provided a total return of 20.78%, at net asset value. This compares with a return of 17.22% for the fund’s benchmark, the Standard & Poor’s 500 Stock Index. The fund’s other benchmark, the MFS Lifetime 2040 Fund Blended Index (the “Blended Index”), generated a return of 18.31%. The Blended Index reflects the blended returns of equity and fixed income market indices, with percentage allocations to each index designed to resemble the equity and fixed income allocations of the fund. The market indices and related percentage allocations used to compile the Blended Index are set forth in the Performance Summary.
Contributors to performance
During the reporting period, the key driver of performance relative to the Blended Index was the fund’s allocation to equity funds, particularly to the MFS New Discovery Fund, MFS Mid Cap Growth Fund, MFS Mid Cap Value Fund, and MFS Research International Fund.
Detractors from performance
The fund’s allocation to fixed income funds, particularly to the MFS Research Bond Fund and MFS Inflation-Adjusted Bond Fund, held back relative performance.
MFS Lifetime 2050 Fund
Summary of results
For the reporting period September 15, 2010 to April 30, 2011, Class A shares of the MFS Lifetime 2050 Fund (the “fund”) provided a total return of 22.20%, at net asset value. This compares with a return of 23.03% for the fund’s benchmark, the Standard & Poor’s 500 Stock Index. The fund’s other benchmark, the MFS Lifetime 2050 Fund Blended Index (the “Blended Index”), generated a return of 20.81%. The Blended Index reflects the blended returns of equity and fixed income market indices, with percentage allocations to each index designed to resemble the equity and fixed income allocations of the fund. The market indices and related percentage allocations used to compile the Blended Index are set forth in the Performance Summary.
9
Table of Contents
Management Review – continued
Detractors from performance
The fund’s allocation to fixed income funds, particularly to the MFS Research Bond Fund and MFS Inflation-Adjusted Bond Fund, held back relative performance.
Contributors to performance
During the reporting period, the key driver of performance relative to the Blended Index was the fund’s allocation to equity funds, particularly to the MFS New Discovery Fund, MFS Mid Cap Growth Fund, MFS Mid Cap Value Fund, and MFS Research International Fund.
Respectfully,
Joseph Flaherty
Portfolio Manager
Note to Shareholders: In April 2011, the Board of Trustees of the funds approved revisions to the target asset class allocations, underlying fund selections and underlying fund target weightings of the funds. These revisions are expected to occur on or before July 1, 2011.
The views expressed in this report are those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily reflect the views of MFS or any other person in the MFS organization. These views are subject to change at any time based on market or other conditions, and MFS disclaims any responsibility to update such views. These views may not be relied upon as investment advice or an indication of trading intent on behalf of any MFS portfolio. References to specific securities are not recommendations of such securities, and may not be representative of any MFS portfolio’s current or future investments.
10
Table of Contents
PERFORMANCE SUMMARY THROUGH 4/30/11
The following charts illustrate a representative class of each fund’s historical performance in comparison to its benchmark(s). Performance results include the deduction of the maximum applicable sales charge and reflect the percentage change in net asset value, including reinvestment of dividends and capital gains distributions. The performance of other share classes will be greater than or less than that of the class depicted below. Benchmarks are unmanaged and may not be invested in directly. Benchmark returns do not reflect sales charges, commissions or expenses. (See Notes to Performance Summary.)
Performance data shown represents past performance and is no guarantee of future results. Investment return and principal value fluctuate so your shares, when sold, may be worth more or less than the original cost; current performance may be lower or higher than quoted. The performance shown does not reflect the deduction of taxes, if any, that a shareholder would pay on fund distributions or the redemption of fund shares.
MFS Lifetime Retirement Income Fund
Growth of a hypothetical $10,000 investment (t)
Average annual total returns through 4/30/11
Without sales charge
| Share class | Class inception date | 1-yr | 5-yr | Life (t) | ||||||||
| A | 9/29/05 | 9.81% | 6.58% | 6.30% | ||||||||
| B | 9/29/05 | 8.99% | 5.87% | 5.59% | ||||||||
| C | 9/29/05 | 8.89% | 5.85% | 5.57% | ||||||||
| I | 9/29/05 | 10.07% | 6.92% | 6.64% | ||||||||
| R1 | 9/29/05 | 8.89% | 5.83% | 5.54% | ||||||||
| R2 | 9/29/05 | 9.53% | 6.34% | 6.05% | ||||||||
| R3 | 9/29/05 | 9.70% | 6.59% | 6.30% | ||||||||
| R4 | 9/29/05 | 9.97% | 6.89% | 6.60% | ||||||||
| Comparative benchmarks | ||||||||||||
| Barclays Capital U.S. Aggregate Bond Index (f) | 5.36% | 6.33% | 5.53% | |||||||||
| MFS Lifetime Retirement Income Fund Blended Index (f)* | 9.02% | 6.41% | 5.99% | |||||||||
| With sales charge | ||||||||||||
| A With Initial Sales Charge (5.75%) |
3.49% | 5.32% | 5.17% | |||||||||
| B With CDSC (Declining over six years from 4% to 0%) (x) |
4.99% | 5.55% | 5.45% | |||||||||
| C With CDSC (1% for 12 months) (x) |
7.89% | 5.85% | 5.57% | |||||||||
Class I, R1, R2, R3, and R4 shares do not have a sales charge.
CDSC – Contingent Deferred Sales Charge.
| (f) | Source: FactSet Research Systems Inc. |
| (t) | For the period from the class inception date through the stated period end. (See Notes to Performance Summary.) |
| (x) | Assuming redemption at the end of the applicable period. |
| * | The table below depicts the individual component weights (in percent) of the blended benchmark (MFS Lifetime Retirement Income Fund Blended Index) at the beginning and at the end of the reporting period: |
| 4/30/11 | 4/30/10 | |||||||||||||
| Barclays Capital U.S. Aggregate Bond Index | 73.00% | 72.20% | ||||||||||||
| Standard & Poor’s 500 Stock Index | 20.00% | 21.40% | ||||||||||||
| MSCI EAFE Index | 5.00% | 5.40% | ||||||||||||
| FTSE EPRA/NAREIT Developed Real Estate Index | 1.00% | 1.00% | ||||||||||||
| Dow Jones-UBS Commodity Index | 1.00% | N/A | ||||||||||||
11
Table of Contents
Performance Summary – continued
MFS Lifetime 2010 Fund
Growth of a hypothetical $10,000 investment (t)
Average annual total returns through 4/30/11
Without sales charge
| Share class | Class inception date | 1-yr | 5-yr | Life (t) | ||||||||||||||
| A | 9/29/05 | 9.73% | 6.21% | 6.41% | ||||||||||||||
| B | 9/29/05 | 8.91% | 5.48% | 5.69% | ||||||||||||||
| C | 9/29/05 | 8.98% | 5.46% | 5.66% | ||||||||||||||
| I | 9/29/05 | 10.01% | 6.52% | 6.73% | ||||||||||||||
| R1 | 9/29/05 | 8.92% | 5.42% | 5.62% | ||||||||||||||
| R2 | 9/29/05 | 9.42% | 5.93% | 6.12% | ||||||||||||||
| R3 | 9/29/05 | 9.74% | 6.20% | 6.40% | ||||||||||||||
| R4 | 9/29/05 | 9.93% | 6.48% | 6.68% | ||||||||||||||
| Comparative benchmarks | ||||||||||||||||||
| Barclays Capital U.S. Aggregate Bond Index (f) | 5.36% | 6.33% | 5.53% | |||||||||||||||
| MFS Lifetime 2010 Fund Blended Index (f)* | 8.91% | 5.67% | 5.76% | |||||||||||||||
| With sales charge | ||||||||||||||||||
| A With Initial Sales Charge (5.75%) |
3.42% | 4.96% | 5.29% | |||||||||||||||
| B With CDSC (Declining over six years from 4% to 0%) (x) |
4.91% | 5.16% | 5.55% | |||||||||||||||
| C With CDSC (1% for 12 months) (x) |
7.98% | 5.46% | 5.66% | |||||||||||||||
Class I, R1, R2, R3, and R4 shares do not have a sales charge.
CDSC – Contingent Deferred Sales Charge.
| (f) | Source: FactSet Research Systems Inc. |
| (t) | For the period from the class inception date through the stated period end. (See Notes to Performance Summary.) |
| (x) | Assuming redemption at the end of the applicable period. |
| * | The weights of the components of the blended benchmark (MFS Lifetime 2010 Fund Blended Index) are designed to change systematically over time on a preset schedule. The table below depicts the individual component weights (in percent) at the beginning and at the end of the reporting period: |
| 4/30/11 | 4/30/10 | |||||||||||||
| Barclays Capital U.S. Aggregate Bond Index | 73.00% | 71.11% | ||||||||||||
| Standard & Poor’s 500 Stock Index | 20.00% | 22.19% | ||||||||||||
| MSCI EAFE Index | 5.00% | 5.70% | ||||||||||||
| FTSE EPRA/NAREIT Developed Real Estate Index | 1.00% | 1.00% | ||||||||||||
| Dow Jones-UBS Commodity Index | 1.00% | N/A | ||||||||||||
12
Table of Contents
Performance Summary – continued
MFS Lifetime 2020 Fund
Growth of a hypothetical $10,000 investment (t)
Average annual total returns through 4/30/11
Without sales charge
| Share class | Class inception date | 1-yr | 5-yr | Life (t) | ||||||||
| A | 9/29/05 | 15.11% | 4.49% | 5.82% | ||||||||
| B | 9/29/05 | 14.23% | 3.75% | 5.08% | ||||||||
| C | 9/29/05 | 14.27% | 3.75% | 5.09% | ||||||||
| I | 9/29/05 | 15.39% | 4.79% | 6.13% | ||||||||
| R1 | 9/29/05 | 14.26% | 3.72% | 5.05% | ||||||||
| R2 | 9/29/05 | 14.84% | 4.23% | 5.56% | ||||||||
| R3 | 9/29/05 | 15.18% | 4.48% | 5.83% | ||||||||
| R4 | 9/29/05 | 15.29% | 4.75% | 6.09% | ||||||||
| Comparative benchmarks | ||||||||||||
| Standard & Poor’s 500 Stock Index (f) | 17.22% | 2.95% | 4.20% | |||||||||
| MFS Lifetime 2020 Fund Blended Index (f)* | 13.05% | 3.94% | 5.11% | |||||||||
| With sales charge | ||||||||||||
| A With Initial Sales Charge (5.75%) |
8.49% | 3.26% | 4.70% | |||||||||
| B With CDSC (Declining over six years from 4% to 0%) (x) |
10.23% | 3.40% | 4.93% | |||||||||
| C With CDSC (1% for 12 months) (x) |
13.27% | 3.75% | 5.09% | |||||||||
Class I, R1, R2, R3, and R4 shares do not have a sales charge.
CDSC – Contingent Deferred Sales Charge.
| (f) | Source: FactSet Research Systems Inc. |
| (t) | For the period from the class inception date through the stated period end. (See Notes to Performance Summary.) |
| (x) | Assuming redemption at the end of the applicable period. |
| * | The weights of the components of the blended benchmark (MFS Lifetime 2020 Fund Blended Index) are designed to change systematically over time on a preset schedule. The table below depicts the individual component weights (in percent) at the beginning and at the end of the reporting period: |
| 4/30/11 | 4/30/10 | |||||||||||||
| Barclays Capital U.S. Aggregate Bond Index | 43.00% | 38.59% | ||||||||||||
| Standard & Poor’s 500 Stock Index | 39.80% | 45.29% | ||||||||||||
| MSCI EAFE Index | 12.50% | 14.01% | ||||||||||||
| FTSE EPRA/NAREIT Developed Real Estate Index | 1.90% | 2.11% | ||||||||||||
| Dow Jones-UBS Commodity Index | 2.80% | N/A | ||||||||||||
13
Table of Contents
Performance Summary – continued
MFS Lifetime 2030 Fund
Growth of a hypothetical $10,000 investment (t)
Average annual total returns through 4/30/11
Without sales charge
| Share class | Class inception date | 1-yr | 5-yr | Life (t) | ||||||||
| A | 9/29/05 | 19.70% | 3.35% | 5.23% | ||||||||
| B | 9/29/05 | 18.69% | 2.61% | 4.49% | ||||||||
| C | 9/29/05 | 18.81% | 2.61% | 4.50% | ||||||||
| I | 9/29/05 | 19.85% | 3.64% | 5.54% | ||||||||
| R1 | 9/29/05 | 18.76% | 2.58% | 4.45% | ||||||||
| R2 | 9/29/05 | 19.38% | 3.08% | 4.95% | ||||||||
| R3 | 9/29/05 | 19.73% | 3.34% | 5.21% | ||||||||
| R4 | 9/29/05 | 19.87% | 3.60% | 5.49% | ||||||||
| Comparative benchmarks | ||||||||||||
| Standard & Poor’s 500 Stock Index (f) | 17.22% | 2.95% | 4.20% | |||||||||
| MFS Lifetime 2030 Fund Blended Index (f)* | 17.07% | 2.93% | 4.55% | |||||||||
| With sales charge | ||||||||||||
| A With Initial Sales Charge (5.75%) |
12.82% | 2.13% | 4.12% | |||||||||
| B With CDSC (Declining over six years from 4% to 0%) (x) |
14.69% | 2.25% | 4.34% | |||||||||
| C With CDSC (1% for 12 months) (x) |
17.81% | 2.61% | 4.50% | |||||||||
Class I, R1, R2, R3, and R4 shares do not have a sales charge.
CDSC – Contingent Deferred Sales Charge.
| (f) | Source: FactSet Research Systems Inc. |
| (t) | For the period from the class inception date through the stated period end. (See Notes to Performance Summary.) |
| (x) | Assuming redemption at the end of the applicable period. |
| * | The weights of the components of the blended benchmark (MFS Lifetime 2030 Fund Blended Index) are designed to change systematically over time on a preset schedule. The table below depicts the individual component weights (in percent) at the beginning and at the end of the reporting period: |
| 4/30/11 | 4/30/10 | |||||||||||||
| Standard & Poor’s 500 Stock Index | 54.33% | 58.88% | ||||||||||||
| MSCI EAFE Index | 23.68% | 24.95% | ||||||||||||
| Barclays Capital U.S. Aggregate Bond Index | 13.64% | 12.06% | ||||||||||||
| Dow Jones-UBS Commodity Index | 4.45% | N/A | ||||||||||||
| FTSE EPRA/NAREIT Developed Real Estate Index | 3.90% | 4.11% | ||||||||||||
14
Table of Contents
Performance Summary – continued
MFS Lifetime 2040 Fund
Growth of a hypothetical $10,000 investment (t)
Average annual total returns through 4/30/11
Without sales charge
| Share class | Class inception date | 1-yr | 5-yr | Life (t) | ||||||||
| A | 9/29/05 | 20.78% | 3.12% | 5.02% | ||||||||
| B | 9/29/05 | 20.00% | 2.40% | 4.31% | ||||||||
| C | 9/29/05 | 19.93% | 2.41% | 4.31% | ||||||||
| I | 9/29/05 | 21.16% | 3.44% | 5.35% | ||||||||
| R1 | 9/29/05 | 19.90% | 2.37% | 4.26% | ||||||||
| R2 | 9/29/05 | 20.58% | 2.87% | 4.78% | ||||||||
| R3 | 9/29/05 | 20.78% | 3.12% | 5.03% | ||||||||
| R4 | 9/29/05 | 21.05% | 3.39% | 5.31% | ||||||||
| Comparative benchmarks | ||||||||||||
| Standard & Poor’s 500 Stock Index (f) | 17.22% | 2.95% | 4.20% | |||||||||
| MFS Lifetime 2040 Fund Blended Index (f)* | 18.31% | 2.76% | 4.40% | |||||||||
| With sales charge | ||||||||||||
| A With Initial Sales Charge (5.75%) |
13.84% | 1.90% | 3.91% | |||||||||
| B With CDSC (Declining over six years from 4% to 0%) (x) |
16.00% | 2.03% | 4.16% | |||||||||
| C With CDSC (1% for 12 months) (x) |
18.93% | 2.41% | 4.31% | |||||||||
Class I, R1, R2, R3, and R4 shares do not have a sales charge.
CDSC – Contingent Deferred Sales Charge.
| (f) | Source: FactSet Research Systems Inc. |
| (t) | For the period from the class inception date through the stated period end. (See Notes to Performance Summary.) |
| (x) | Assuming redemption at the end of the applicable period. |
| * | The weights of the components of the blended benchmark (MFS Lifetime 2040 Fund Blended Index) are designed to change systematically over time on a preset schedule. The table below depicts the individual component weights (in percent) at the beginning and at the end of the reporting period: |
| 4/30/11 | 4/30/10 | |||||||||||||
| Standard & Poor’s 500 Stock Index | 57.00% | 62.00% | ||||||||||||
| MSCI EAFE Index | 28.00% | 28.00% | ||||||||||||
| Barclays Capital U.S. Aggregate Bond Index | 5.00% | 5.00% | ||||||||||||
| FTSE EPRA/NAREIT Developed Real Estate Index | 5.00% | 5.00% | ||||||||||||
| Dow Jones-UBS Commodity Index | 5.00% | N/A | ||||||||||||
15
Table of Contents
Performance Summary – continued
MFS Lifetime 2050 Fund
Growth of a hypothetical $10,000 investment (t)
Average annual total returns through 4/30/11
Without sales charge
| Share class | Class inception date | Life (t) | ||||||||
| A | 9/15/10 | 22.20% | ||||||||
| B | 9/15/10 | 21.70% | ||||||||
| C | 9/15/10 | 21.70% | ||||||||
| I | 9/15/10 | 22.45% | ||||||||
| R1 | 9/15/10 | 21.70% | ||||||||
| R2 | 9/15/10 | 22.07% | ||||||||
| R3 | 9/15/10 | 22.26% | ||||||||
| R4 | 9/15/10 | 22.45% | ||||||||
| Comparative benchmarks | ||||||||||
| Standard & Poor’s 500 Stock Index (f) | 23.03% | |||||||||
| MFS Lifetime 2050 Fund Blended Index (f)* | 20.81% | |||||||||
| With sales charge | ||||||||||
| A With Initial Sales Charge (5.75%) |
15.18% | |||||||||
| B With CDSC (Declining over six years from 4% to 0%) (x) |
17.70% | |||||||||
| C With CDSC (1% for 12 months) (x) |
20.70% | |||||||||
Class I, R1, R2, R3, and R4 shares do not have a sales charge.
CDSC – Contingent Deferred Sales Charge.
| (f) | Source: FactSet Research Systems Inc. |
| (t) | For the period from the class inception date through the stated period end. (See Notes to Performance Summary.) |
| (x) | Assuming redemption at the end of the applicable period. |
| * | The weights of the components of the blended benchmark (MFS Lifetime 2050 Fund Blended Index) are designed to change systematically over time on a preset schedule. The table below depicts the individual component weights (in percent) at the beginning and at the end of the reporting period: |
| 4/30/11 | 4/30/10 | |||||||||||||
| Standard & Poor’s 500 Stock Index | 57.00% | N/A | ||||||||||||
| MSCI EAFE Index | 28.00% | N/A | ||||||||||||
| Barclays Capital U.S. Aggregate Bond Index | 5.00% | N/A | ||||||||||||
| FTSE EPRA/NAREIT Developed Real Estate Index | 5.00% | N/A | ||||||||||||
| Dow Jones-UBS Commodity Index | 5.00% | N/A | ||||||||||||
16
Table of Contents
Performance Summary – continued
Benchmark Definitions
Barclays Capital U.S. Aggregate Bond Index – a market capitalization-weighted index that measures the performance of the U.S. investment-grade, fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities with at least one year to final maturity.
Dow Jones-UBS Commodity Index – a highly liquid and diversified benchmark for the commodity futures market. The index tracks trades on futures contracts for physical commodities, such as energy (petroleum, gas), precious metals (gold, silver), industrial metals (zinc, copper), grains (corn, wheat), livestock (pork bellies), among others, and are traded in a variety of currencies.
FTSE EPRA/NAREIT Developed Real Estate Index – measures the performance of eligible real estate equities worldwide that generate a majority of their revenue and income through the ownership, disposure and development of income-producing real estate.
MSCI EAFE (Europe, Australasia, Far East) Index- a market capitalization-weighted index that is designed to measure equity market performance in the developed markets, excluding the U.S. and Canada.
Standard & Poor’s 500 Stock Index – a market capitalization-weighted index of 500 widely held equity securities, designed to measure broad U.S. equity performance.
It is not possible to invest directly in an index.
Notes to Performance Summary
Average annual total return represents the average annual change in value for each share class for the periods presented. Life returns are presented where the share class has less than 10 years of performance history and represent the average annual total return from the class inception date to the stated period end date.
Performance results reflect any applicable expense subsidies and waivers in effect during the periods shown. Without such subsidies and waivers each fund’s performance results would be less favorable. Please see the prospectus and financial statements for complete details.
From time to time the funds may receive proceeds from litigation settlements, without which performance would be lower.
17
Table of Contents
Fund expenses borne by the shareholders during the period, November 1, 2010 through April 30, 2011
As a shareholder of the funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on certain purchase or redemption payments, and (2) ongoing costs, including distribution and service (12b-1) fees; and other fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the funds and to compare these costs with the ongoing costs of investing in other mutual funds.
In addition to the fees and expenses which each fund bears directly, each fund indirectly bears a pro rata share of the fees and expenses of certain underlying funds in which each fund invests. Because the underlying funds have varied expenses and fee levels and each fund may own different proportions of the underlying funds at different times, the amount of fees and expenses incurred indirectly by each fund will vary. If these transactional and indirect costs were included, your costs would have been higher.
These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period November 1, 2010 through April 30, 2011.
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.
18
Table of Contents
Expense Tables – continued
MFS LIFETIME RETIREMENT INCOME FUND
| Share Class |
Annualized Expense Ratio |
Beginning Account Value 11/01/10 |
Ending Account Value 4/30/11 |
Expenses Paid During Period (p) 11/01/10-4/30/11 |
||||||||||||||
| A | Actual | 0.25% | $1,000.00 | $1,050.32 | $1.27 | |||||||||||||
| Hypothetical (h) | 0.25% | $1,000.00 | $1,023.55 | $1.25 | ||||||||||||||
| B | Actual | 1.00% | $1,000.00 | $1,047.36 | $5.08 | |||||||||||||
| Hypothetical (h) | 1.00% | $1,000.00 | $1,019.84 | $5.01 | ||||||||||||||
| C | Actual | 1.00% | $1,000.00 | $1,046.44 | $5.07 | |||||||||||||
| Hypothetical (h) | 1.00% | $1,000.00 | $1,019.84 | $5.01 | ||||||||||||||
| I | Actual | 0.00% | $1,000.00 | $1,052.55 | $0.00 | |||||||||||||
| Hypothetical (h) | 0.00% | $1,000.00 | $1,024.79 | $0.00 | ||||||||||||||
| R1 | Actual | 1.00% | $1,000.00 | $1,046.40 | $5.07 | |||||||||||||
| Hypothetical (h) | 1.00% | $1,000.00 | $1,019.84 | $5.01 | ||||||||||||||
| R2 | Actual | 0.50% | $1,000.00 | $1,049.95 | $2.54 | |||||||||||||
| Hypothetical (h) | 0.50% | $1,000.00 | $1,022.32 | $2.51 | ||||||||||||||
| R3 | Actual | 0.25% | $1,000.00 | $1,050.33 | $1.27 | |||||||||||||
| Hypothetical (h) | 0.25% | $1,000.00 | $1,023.55 | $1.25 | ||||||||||||||
| R4 | Actual | 0.00% | $1,000.00 | $1,051.60 | $0.00 | |||||||||||||
| Hypothetical (h) | 0.00% | $1,000.00 | $1,024.79 | $0.00 | ||||||||||||||
| (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. In addition to the fees and expenses which the funds bear directly, the funds indirectly bear a pro rata share of the fees and expenses of the underlying funds in which the funds invest. If these indirect costs were included, your costs would have been higher. |
19
Table of Contents
Expense Tables – continued
MFS LIFETIME 2010 FUND
| Share Class |
Annualized Expense Ratio |
Beginning Account Value 11/01/10 |
Ending Account Value 4/30/11 |
Expenses Paid During Period (p) 11/01/10-4/30/11 |
||||||||||||||
| A | Actual | 0.25% | $1,000.00 | $1,050.77 | $1.27 | |||||||||||||
| Hypothetical (h) | 0.25% | $1,000.00 | $1,023.55 | $1.25 | ||||||||||||||
| B | Actual | 1.00% | $1,000.00 | $1,047.11 | $5.08 | |||||||||||||
| Hypothetical (h) | 1.00% | $1,000.00 | $1,019.84 | $5.01 | ||||||||||||||
| C | Actual | 1.00% | $1,000.00 | $1,047.45 | $5.08 | |||||||||||||
| Hypothetical (h) | 1.00% | $1,000.00 | $1,019.84 | $5.01 | ||||||||||||||
| I | Actual | 0.00% | $1,000.00 | $1,052.78 | $0.00 | |||||||||||||
| Hypothetical (h) | 0.00% | $1,000.00 | $1,024.79 | $0.00 | ||||||||||||||
| R1 | Actual | 1.00% | $1,000.00 | $1,047.77 | $5.08 | |||||||||||||
| Hypothetical (h) | 1.00% | $1,000.00 | $1,019.84 | $5.01 | ||||||||||||||
| R2 | Actual | 0.50% | $1,000.00 | $1,049.35 | $2.54 | |||||||||||||
| Hypothetical (h) | 0.50% | $1,000.00 | $1,022.32 | $2.51 | ||||||||||||||
| R3 | Actual | 0.25% | $1,000.00 | $1,050.91 | $1.27 | |||||||||||||
| Hypothetical (h) | 0.25% | $1,000.00 | $1,023.55 | $1.25 | ||||||||||||||
| R4 | Actual | 0.00% | $1,000.00 | $1,051.98 | $0.00 | |||||||||||||
| Hypothetical (h) | 0.00% | $1,000.00 | $1,024.79 | $0.00 | ||||||||||||||
| (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. In addition to the fees and expenses which the funds bear directly, the funds indirectly bear a pro rata share of the fees and expenses of the underlying funds in which the funds invest. If these indirect costs were included, your costs would have been higher. |
20
Table of Contents
Expense Tables – continued
MFS LIFETIME 2020 FUND
| Share Class |
Annualized Expense Ratio |
Beginning Account Value 11/01/10 |
Ending Account Value 4/30/11 |
Expenses Paid During Period (p) 11/01/10-4/30/11 |
||||||||||||||
| A | Actual | 0.25% | $1,000.00 | $1,099.80 | $1.30 | |||||||||||||
| Hypothetical (h) | 0.25% | $1,000.00 | $1,023.55 | $1.25 | ||||||||||||||
| B | Actual | 1.00% | $1,000.00 | $1,095.19 | $5.19 | |||||||||||||
| Hypothetical (h) | 1.00% | $1,000.00 | $1,019.84 | $5.01 | ||||||||||||||
| C | Actual | 1.00% | $1,000.00 | $1,095.23 | $5.20 | |||||||||||||
| Hypothetical (h) | 1.00% | $1,000.00 | $1,019.84 | $5.01 | ||||||||||||||
| I | Actual | 0.00% | $1,000.00 | $1,100.64 | $0.00 | |||||||||||||
| Hypothetical (h) | 0.00% | $1,000.00 | $1,024.79 | $0.00 | ||||||||||||||
| R1 | Actual | 1.00% | $1,000.00 | $1,095.36 | $5.20 | |||||||||||||
| Hypothetical (h) | 1.00% | $1,000.00 | $1,019.84 | $5.01 | ||||||||||||||
| R2 | Actual | 0.50% | $1,000.00 | $1,099.02 | $2.60 | |||||||||||||
| Hypothetical (h) | 0.50% | $1,000.00 | $1,022.32 | $2.51 | ||||||||||||||
| R3 | Actual | 0.25% | $1,000.00 | $1,099.51 | $1.30 | |||||||||||||
| Hypothetical (h) | 0.25% | $1,000.00 | $1,023.55 | $1.25 | ||||||||||||||
| R4 | Actual | 0.00% | $1,000.00 | $1,100.73 | $0.00 | |||||||||||||
| Hypothetical (h) | 0.00% | $1,000.00 | $1,024.79 | $0.00 | ||||||||||||||
| (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. In addition to the fees and expenses which the funds bear directly, the funds indirectly bear a pro rata share of the fees and expenses of the underlying funds in which the funds invest. If these indirect costs were included, your costs would have been higher. |
21
Table of Contents
Expense Tables – continued
MFS LIFETIME 2030 FUND
| Share Class |
Annualized Expense Ratio |
Beginning Account Value 11/01/10 |
Ending Account Value 4/30/11 |
Expenses Paid During Period (p) 11/01/10-4/30/11 |
||||||||||||||
| A | Actual | 0.25% | $1,000.00 | $1,142.59 | $1.33 | |||||||||||||
| Hypothetical (h) | 0.25% | $1,000.00 | $1,023.55 | $1.25 | ||||||||||||||
| B | Actual | 1.00% | $1,000.00 | $1,137.08 | $5.30 | |||||||||||||
| Hypothetical (h) | 1.00% | $1,000.00 | $1,019.84 | $5.01 | ||||||||||||||
| C | Actual | 1.00% | $1,000.00 | $1,138.14 | $5.30 | |||||||||||||
| Hypothetical (h) | 1.00% | $1,000.00 | $1,019.84 | $5.01 | ||||||||||||||
| I | Actual | 0.00% | $1,000.00 | $1,143.12 | $0.00 | |||||||||||||
| Hypothetical (h) | 0.00% | $1,000.00 | $1,024.79 | $0.00 | ||||||||||||||
| R1 | Actual | 1.00% | $1,000.00 | $1,137.65 | $5.30 | |||||||||||||
| Hypothetical (h) | 1.00% | $1,000.00 | $1,019.84 | $5.01 | ||||||||||||||
| R2 | Actual | 0.50% | $1,000.00 | $1,141.43 | $2.65 | |||||||||||||
| Hypothetical (h) | 0.50% | $1,000.00 | $1,022.32 | $2.51 | ||||||||||||||
| R3 | Actual | 0.25% | $1,000.00 | $1,142.75 | $1.33 | |||||||||||||
| Hypothetical (h) | 0.25% | $1,000.00 | $1,023.55 | $1.25 | ||||||||||||||
| R4 | Actual | 0.00% | $1,000.00 | $1,143.27 | $0.00 | |||||||||||||
| Hypothetical (h) | 0.00% | $1,000.00 | $1,024.79 | $0.00 | ||||||||||||||
| (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. In addition to the fees and expenses which the funds bear directly, the funds indirectly bear a pro rata share of the fees and expenses of the underlying funds in which the funds invest. If these indirect costs were included, your costs would have been higher. |
22
Table of Contents
Expense Tables – continued
MFS LIFETIME 2040 FUND
| Share Class |
Annualized Expense Ratio |
Beginning Account Value 11/01/10 |
Ending Account Value 4/30/11 |
Expenses Paid During Period (p) 11/01/10-4/30/11 |
||||||||||||||
| A | Actual | 0.25% | $1,000.00 | $1,153.16 | $1.33 | |||||||||||||
| Hypothetical (h) | 0.25% | $1,000.00 | $1,023.55 | $1.25 | ||||||||||||||
| B | Actual | 1.00% | $1,000.00 | $1,148.92 | $5.33 | |||||||||||||
| Hypothetical (h) | 1.00% | $1,000.00 | $1,019.84 | $5.01 | ||||||||||||||
| C | Actual | 1.00% | $1,000.00 | $1,149.08 | $5.33 | |||||||||||||
| Hypothetical (h) | 1.00% | $1,000.00 | $1,019.84 | $5.01 | ||||||||||||||
| I | Actual | 0.00% | $1,000.00 | $1,154.61 | $0.00 | |||||||||||||
| Hypothetical (h) | 0.00% | $1,000.00 | $1,024.79 | $0.00 | ||||||||||||||
| R1 | Actual | 1.00% | $1,000.00 | $1,148.81 | $5.33 | |||||||||||||
| Hypothetical (h) | 1.00% | $1,000.00 | $1,019.84 | $5.01 | ||||||||||||||
| R2 | Actual | 0.50% | $1,000.00 | $1,152.01 | $2.67 | |||||||||||||
| Hypothetical (h) | 0.50% | $1,000.00 | $1,022.32 | $2.51 | ||||||||||||||
| R3 | Actual | 0.25% | $1,000.00 | $1,153.11 | $1.33 | |||||||||||||
| Hypothetical (h) | 0.25% | $1,000.00 | $1,023.55 | $1.25 | ||||||||||||||
| R4 | Actual | 0.00% | $1,000.00 | $1,154.77 | $0.00 | |||||||||||||
| Hypothetical (h) | 0.00% | $1,000.00 | $1,024.79 | $0.00 | ||||||||||||||
| (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. In addition to the fees and expenses which the funds bear directly, the funds indirectly bear a pro rata share of the fees and expenses of the underlying funds in which the funds invest. If these indirect costs were included, your costs would have been higher. |
23
Table of Contents
Expense Tables – continued
MFS LIFETIME 2050 FUND
| Share Class |
Annualized Expense Ratio |
Beginning Account Value 11/01/10 |
Ending Account Value 4/30/11 |
Expenses Paid During Period (p) 11/01/10-4/30/11 |
||||||||||||||
| A | Actual | 0.25% | $1,000.00 | $1,152.86 | $1.33 | |||||||||||||
| Hypothetical (h) | 0.25% | $1,000.00 | $1,023.55 | $1.25 | ||||||||||||||
| B | Actual | 1.00% | $1,000.00 | $1,149.17 | $5.33 | |||||||||||||
| Hypothetical (h) | 1.00% | $1,000.00 | $1,019.84 | $5.01 | ||||||||||||||
| C | Actual | 1.00% | $1,000.00 | $1,149.17 | $5.33 | |||||||||||||
| Hypothetical (h) | 1.00% | $1,000.00 | $1,019.84 | $5.01 | ||||||||||||||
| I | Actual | 0.00% | $1,000.00 | $1,155.14 | $0.00 | |||||||||||||
| Hypothetical (h) | 0.00% | $1,000.00 | $1,024.79 | $0.00 | ||||||||||||||
| R1 | Actual | 1.00% | $1,000.00 | $1,149.17 | $5.33 | |||||||||||||
| Hypothetical (h) | 1.00% | $1,000.00 | $1,019.84 | $5.01 | ||||||||||||||
| R2 | Actual | 0.50% | $1,000.00 | $1,152.70 | $2.67 | |||||||||||||
| Hypothetical (h) | 0.50% | $1,000.00 | $1,022.32 | $2.51 | ||||||||||||||
| R3 | Actual | 0.25% | $1,000.00 | $1,153.38 | $1.33 | |||||||||||||
| Hypothetical (h) | 0.25% | $1,000.00 | $1,023.55 | $1.25 | ||||||||||||||
| R4 | Actual | 0.00% | $1,000.00 | $1,155.14 | $0.00 | |||||||||||||
| Hypothetical (h) | 0.00% | $1,000.00 | $1,024.79 | $0.00 | ||||||||||||||
| (h) | 5% class return per year before expenses. |
| (p) | Expenses paid is equal to each class’ annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by the number of days in the period, divided by the number of days in the year. Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. In addition to the fees and expenses which the funds bear directly, the funds indirectly bear a pro rata share of the fees and expenses of the underlying funds in which the funds invest. If these indirect costs were included, your costs would have been higher. |
24
Table of Contents
4/30/11
These Portfolios of Investments are a complete list of all securities owned by the funds. They are categorized by broad-based asset classes.
MFS LIFETIME RETIREMENT INCOME FUND
| Underlying Affiliated Funds - 100.1% | ||||||||
| Issuer | Shares/Par | Value ($) | ||||||
| MFS Commodity Strategy Fund - Class I | 70,131 | $ | 1,016,902 | |||||
| MFS Core Growth Fund - Class I (a) | 103,713 | 2,033,805 | ||||||
| MFS Diversified Target Return Fund - Class I | 220,826 | 2,033,805 | ||||||
| MFS Emerging Markets Debt Fund - Class I | 69,556 | 1,016,902 | ||||||
| MFS Global Bond Fund - Class I | 469,051 | 5,084,512 | ||||||
| MFS Global Real Estate Fund - Class I | 67,793 | 1,016,903 | ||||||
| MFS Government Securities Fund - Class I | 998,922 | 10,169,025 | ||||||
| MFS High Income Fund - Class I | 856,940 | 3,050,707 | ||||||
| MFS Inflation-Adjusted Bond Fund - Class I | 956,634 | 10,169,025 | ||||||
| MFS International Growth Fund - Class I | 35,756 | 1,016,902 | ||||||
| MFS International Value Fund - Class I | 36,566 | 1,016,902 | ||||||
| MFS Limited Maturity Fund - Class I | 3,290,946 | 20,338,049 | ||||||
| MFS Mid Cap Growth Fund - Class I (a) | 298,212 | 3,050,707 | ||||||
| MFS Mid Cap Value Fund - Class I | 207,531 | 3,050,707 | ||||||
| MFS New Discovery Fund - Class I | 71,714 | 2,033,805 | ||||||
| MFS Research Bond Fund - Class I | 2,116,542 | 22,371,854 | ||||||
| MFS Research Fund - Class I | 297,449 | 8,135,220 | ||||||
| MFS Research International Fund - Class I | 176,853 | 3,050,707 | ||||||
| MFS Value Fund - Class I | 81,745 | 2,033,815 | ||||||
| Total Underlying Affiliated Funds (Identified Cost, $90,125,649) | $ | 101,690,254 | ||||||
| Money Market Funds (v) - 0.0% | ||||||||
| MFS Institutional Money Market Portfolio, 0.16%, at Cost and Net Asset Value | 6,884 | $ | 6,884 | |||||
| Total Investments (Identified Cost, $90,132,533) | $ | 101,697,138 | ||||||
| Other Assets, Less Liabilities - (0.1)% | (62,388) | |||||||
| Net Assets - 100.0% | $ | 101,634,750 | ||||||
| MFS LIFETIME 2010 FUND | ||||||||
| Underlying Affiliated Funds - 100.0% | ||||||||
| Issuer | Shares/Par | Value ($) | ||||||
| MFS Commodity Strategy Fund - Class I | 39,374 | $ | 570,920 | |||||
| MFS Core Growth Fund - Class I (a) | 58,228 | 1,141,843 | ||||||
| MFS Diversified Target Return Fund - Class I | 123,978 | 1,141,840 | ||||||
| MFS Emerging Markets Debt Fund - Class I | 39,051 | 570,920 | ||||||
| MFS Global Bond Fund - Class I | 263,339 | 2,854,600 | ||||||
| MFS Global Real Estate Fund - Class I | 38,062 | 570,923 | ||||||
| MFS Government Securities Fund - Class I | 560,825 | 5,709,200 | ||||||
| MFS High Income Fund - Class I | 481,112 | 1,712,760 | ||||||
| MFS Inflation-Adjusted Bond Fund - Class I | 537,084 | 5,709,200 | ||||||
| MFS International Growth Fund - Class I | 20,075 | 570,920 | ||||||
| MFS International Value Fund - Class I | 20,529 | 570,920 | ||||||
| MFS Limited Maturity Fund - Class I | 1,847,638 | 11,418,400 | ||||||
| MFS Mid Cap Growth Fund - Class I (a) | 167,425 | 1,712,760 | ||||||
| MFS Mid Cap Value Fund - Class I | 116,514 | 1,712,760 | ||||||
| MFS New Discovery Fund - Class I | 40,262 | 1,141,840 | ||||||
| MFS Research Bond Fund - Class I | 1,188,291 | 12,560,240 | ||||||
| MFS Research Fund - Class I | 166,997 | 4,567,360 | ||||||
| MFS Research International Fund - Class I | 99,290 | 1,712,760 | ||||||
| MFS Value Fund - Class I | 45,895 | 1,141,856 | ||||||
| Total Underlying Affiliated Funds (Identified Cost, $47,732,335) | $ | 57,092,022 | ||||||
| Money Market Funds (v) - 0.1% | ||||||||
| MFS Institutional Money Market Portfolio, 0.16%, at Cost and Net Asset Value | 57,679 | $ | 57,679 | |||||
| Total Investments (Identified Cost, $47,790,014) | $ | 57,149,701 | ||||||
| Other Assets, Less Liabilities - (0.1)% | (81,355) | |||||||
| Net Assets - 100.0% | $ | 57,068,346 | ||||||
See Portfolio Footnotes and Notes to Financial Statements
25
Table of Contents
Portfolios of Investments – continued
| MFS LIFETIME 2020 FUND | ||||||||
| Underlying Affiliated Funds - 100.0% | ||||||||
| Issuer | Shares/Par | Value ($) | ||||||
| MFS Commodity Strategy Fund - Class I | 257,667 | $ | 3,736,180 | |||||
| MFS Core Growth Fund - Class I (a) | 539,861 | 10,586,673 | ||||||
| MFS Diversified Target Return Fund - Class I | 162,658 | 1,498,081 | ||||||
| MFS Emerging Markets Debt Fund - Class I | 277,481 | 4,056,767 | ||||||
| MFS Global Bond Fund - Class I | 626,630 | 6,792,672 | ||||||
| MFS Global Real Estate Fund - Class I | 170,962 | 2,564,434 | ||||||
| MFS Government Securities Fund - Class I | 1,322,688 | 13,464,965 | ||||||
| MFS High Income Fund - Class I | 1,897,679 | 6,755,739 | ||||||
| MFS Inflation-Adjusted Bond Fund - Class I | 705,073 | 7,494,921 | ||||||
| MFS International Growth Fund - Class I | 138,244 | 3,931,655 | ||||||
| MFS International New Discovery Fund - Class I | 49,524 | 1,206,889 | ||||||
| MFS International Value Fund - Class I | 142,322 | 3,957,972 | ||||||
| MFS Limited Maturity Fund - Class I | 243,584 | 1,505,348 | ||||||
| MFS Mid Cap Growth Fund - Class I (a) | 881,337 | 9,016,078 | ||||||
| MFS Mid Cap Value Fund - Class I | 616,490 | 9,062,399 | ||||||
| MFS New Discovery Fund - Class I | 138,802 | 3,936,420 | ||||||
| MFS Research Bond Fund - Class I | 1,602,971 | 16,943,402 | ||||||
| MFS Research Fund - Class I | 387,276 | 10,591,993 | ||||||
| MFS Research International Fund - Class I | 456,384 | 7,872,632 | ||||||
| MFS Value Fund - Class I | 426,076 | 10,600,762 | ||||||
| Total Underlying Affiliated Funds (Identified Cost, $113,258,808) | $ | 135,575,982 | ||||||
| Money Market Funds (v) - 0.0% | ||||||||
| MFS Institutional Money Market Portfolio, 0.16%, at Cost and Net Asset Value | 11 | $ | 11 | |||||
| Total Investments (Identified Cost, $113,258,819) | $ | 135,575,993 | ||||||
| Other Assets, Less Liabilities - (0.0)% | (40,773) | |||||||
| Net Assets - 100.0% | $ | 135,535,220 | ||||||
| MFS LIFETIME 2030 FUND | ||||||||
| Underlying Affiliated Funds - 100.0% | ||||||||
| Issuer | Shares/Par | Value ($) | ||||||
| MFS Commodity Strategy Fund - Class I | 311,908 | $ | 4,522,666 | |||||
| MFS Core Growth Fund - Class I (a) | 595,224 | 11,672,335 | ||||||
| MFS Diversified Target Return Fund - Class I | 61,489 | 566,316 | ||||||
| MFS Emerging Markets Debt Fund - Class I | 116,673 | 1,705,765 | ||||||
| MFS Emerging Markets Equity Fund - Class I | 39,717 | 1,468,349 | ||||||
| MFS Global Bond Fund - Class I | 210,128 | 2,277,785 | ||||||
| MFS Global Real Estate Fund - Class I | 264,073 | 3,961,096 | ||||||
| MFS High Income Fund - Class I | 798,036 | 2,841,008 | ||||||
| MFS Inflation-Adjusted Bond Fund - Class I | 373,011 | 3,965,107 | ||||||
| MFS International Growth Fund - Class I | 211,049 | 6,002,232 | ||||||
| MFS International New Discovery Fund - Class I | 120,707 | 2,941,636 | ||||||
| MFS International Value Fund - Class I | 215,941 | 6,005,332 | ||||||
| MFS Mid Cap Growth Fund - Class I (a) | 941,246 | 9,628,944 | ||||||
| MFS Mid Cap Value Fund - Class I | 655,220 | 9,631,735 | ||||||
| MFS New Discovery Fund - Class I | 159,797 | 4,531,849 | ||||||
| MFS Research Bond Fund - Class I | 267,656 | 2,829,123 | ||||||
| MFS Research Fund - Class I | 298,414 | 8,161,627 | ||||||
| MFS Research International Fund - Class I | 440,147 | 7,592,539 | ||||||
| MFS Value Fund - Class I | 469,185 | 11,673,319 | ||||||
| Total Underlying Affiliated Funds (Identified Cost, $80,790,385) | $ | 101,978,763 | ||||||
| Money Market Funds (v) - 0.0% | ||||||||
| MFS Institutional Money Market Portfolio, 0.16%, at Cost and Net Asset Value | 11 | $ | 11 | |||||
| Total Investments (Identified Cost, $80,790,396) | $ | 101,978,774 | ||||||
| Other Assets, Less Liabilities - (0.0)% | (32,753) | |||||||
| Net Assets - 100.0% | $ | 101,946,021 | ||||||
See Portfolio Footnotes and Notes to Financial Statements
26
Table of Contents
Portfolios of Investments – continued
| MFS LIFETIME 2040 FUND | ||||||||
| Underlying Affiliated Funds - 100.0% | ||||||||
| Issuer | Shares/Par | Value ($) | ||||||
| MFS Commodity Strategy Fund - Class I | 245,083 | $ | 3,553,704 | |||||
| MFS Core Growth Fund - Class I (a) | 435,474 | 8,539,643 | ||||||
| MFS Emerging Markets Equity Fund - Class I | 38,377 | 1,418,808 | ||||||
| MFS Global Real Estate Fund - Class I | 237,168 | 3,557,513 | ||||||
| MFS Inflation-Adjusted Bond Fund - Class I | 166,865 | 1,773,780 | ||||||
| MFS International Growth Fund - Class I | 175,169 | 4,981,819 | ||||||
| MFS International New Discovery Fund - Class I | 116,811 | 2,846,688 | ||||||
| MFS International Value Fund - Class I | 179,246 | 4,984,823 | ||||||
| MFS Mid Cap Growth Fund - Class I (a) | 695,055 | 7,110,417 | ||||||
| MFS Mid Cap Value Fund - Class I | 484,106 | 7,116,360 | ||||||
| MFS New Discovery Fund - Class I | 125,489 | 3,558,861 | ||||||
| MFS Research Bond Fund - Class I | 167,807 | 1,773,721 | ||||||
| MFS Research Fund - Class I | 208,173 | 5,693,531 | ||||||
| MFS Research International Fund - Class I | 330,096 | 5,694,153 | ||||||
| MFS Value Fund - Class I | 343,261 | 8,540,342 | ||||||
| Total Underlying Affiliated Funds (Identified Cost, $54,688,016) | $ | 71,144,163 | ||||||
| Money Market Funds (v) - 0.0% | ||||||||
| MFS Institutional Money Market Portfolio, 0.16%, at Cost and Net Asset Value | 4,270 | $ | 4,270 | |||||
| Total Investments (Identified Cost, $54,692,286) | $ | 71,148,433 | ||||||
| Other Assets, Less Liabilities - (0.0)% | (15,205) | |||||||
| Net Assets - 100.0% | $ | 71,133,228 | ||||||
| MFS LIFETIME 2050 FUND | ||||||||
| Underlying Affiliated Funds - 100.6% | ||||||||
| Issuer | Shares/Par | Value ($) | ||||||
| MFS Commodity Strategy Fund - Class I | 9,922 | $ | 143,872 | |||||
| MFS Core Growth Fund - Class I (a) | 17,462 | 342,431 | ||||||
| MFS Emerging Markets Equity Fund - Class I | 1,543 | 57,036 | ||||||
| MFS Global Real Estate Fund - Class I | 9,497 | 142,447 | ||||||
| MFS Inflation-Adjusted Bond Fund - Class I | 6,708 | 71,304 | ||||||
| MFS International Growth Fund - Class I | 7,029 | 199,900 | ||||||
| MFS International New Discovery Fund - Class I | 4,681 | 114,075 | ||||||
| MFS International Value Fund - Class I | 7,206 | 200,390 | ||||||
| MFS Mid Cap Growth Fund - Class I (a) | 27,863 | 285,041 | ||||||
| MFS Mid Cap Value Fund - Class I | 19,408 | 285,294 | ||||||
| MFS New Discovery Fund - Class I | 5,041 | 142,959 | ||||||
| MFS Research Bond Fund - Class I | 6,747 | 71,313 | ||||||
| MFS Research Fund - Class I | 8,345 | 228,236 | ||||||
| MFS Research International Fund - Class I | 13,239 | 228,381 | ||||||
| MFS Value Fund - Class I | 13,753 | 342,167 | ||||||
| Total Underlying Affiliated Funds (Identified Cost, $2,484,690) | $ | 2,854,846 | ||||||
| Money Market Funds (v) - 0.4% | ||||||||
| MFS Institutional Money Market Portfolio, 0.16%, at Cost and Net Asset Value | 12,511 | $ | 12,511 | |||||
| Total Investments (Identified Cost, $2,497,201) | $ | 2,867,357 | ||||||
| Other Assets, Less Liabilities - (1.0)% | (28,151) | |||||||
| Net Assets - 100.0% | $ | 2,839,206 | ||||||
| (a) | Non-income producing security. |
| (v) | Underlying affiliated fund that is available only to investment companies managed by MFS. The rate quoted is the annualized seven-day yield of the fund at period end. |
See Notes to Financial Statements
27
Table of Contents
Financial Statements
STATEMENTS OF ASSETS AND LIABILITIES
At 4/30/11
These statements represent each fund’s balance sheet, which details the assets and liabilities comprising the total value of each fund.
| MFS Lifetime Retirement Income Fund |
MFS Lifetime 2010 Fund |
MFS Lifetime 2020 Fund |
MFS Lifetime 2030 Fund |
MFS Lifetime 2040 Fund |
MFS Lifetime 2050 Fund |
|||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Investments – | ||||||||||||||||||||||||
| Underlying affiliated funds, at value (Identified cost, $90,132,533, $47,790,014, $113,258,819, $80,790,396, $54,692,286, and $2,497,201, respectively) |
$101,697,138 | $57,149,701 | $135,575,993 | $101,978,774 | $71,148,433 | $2,867,357 | ||||||||||||||||||
| Receivables for |
||||||||||||||||||||||||
| Investments sold |
762,970 | 512,091 | 174,255 | 502,494 | 269,296 | — | ||||||||||||||||||
| Fund shares sold |
799,348 | 352,422 | 526,678 | 226,540 | 140,844 | 7,646 | ||||||||||||||||||
| Receivable from investment adviser | 21,758 | 14,925 | 18,057 | 15,852 | 13,631 | 10,679 | ||||||||||||||||||
| Other assets |
783 | 620 | 1,111 | 850 | 652 | 69 | ||||||||||||||||||
| Total assets |
$103,281,997 | $58,029,759 | $136,296,094 | $102,724,510 | $71,572,856 | $2,885,751 | ||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||
| Payable to custodian |
$— | $— | $141,264 | $28,494 | $— | $— | ||||||||||||||||||
| Payables for |
||||||||||||||||||||||||
| Distributions |
26,252 | — | — | — | — | — | ||||||||||||||||||
| Investments purchased |
740,548 | 329,185 | 62,906 | 150,113 | 86,302 | 20,156 | ||||||||||||||||||
| Fund shares reacquired |
828,772 | 587,572 | 504,958 | 550,802 | 307,151 | — | ||||||||||||||||||
| Payable to affiliates |
||||||||||||||||||||||||
| Shareholder servicing costs |
1,097 | 1,987 | 3,632 | 3,192 | 2,290 | 2,070 | ||||||||||||||||||
| Distribution and service fees |
4,771 | 2,473 | 5,532 | 4,002 | 2,858 | 83 | ||||||||||||||||||
| Payable for independent Trustees’ compensation |
7 | 8 | 7 | 9 | 5 | 6 | ||||||||||||||||||
| Accrued expenses and other liabilities |
45,800 | 40,188 | 42,575 | 41,877 | 41,022 | 24,230 | ||||||||||||||||||
| Total liabilities |
$1,647,247 | $961,413 | $760,874 | $778,489 | $439,628 | $46,545 | ||||||||||||||||||
| Net assets |
$101,634,750 | $57,068,346 | $135,535,220 | $101,946,021 | $71,133,228 | $2,839,206 | ||||||||||||||||||
| Net assets consist of | ||||||||||||||||||||||||
| Paid-in capital | $92,734,341 | $51,302,610 | $124,975,163 | $91,832,035 | $61,455,556 | $2,464,215 | ||||||||||||||||||
| Unrealized appreciation (depreciation) on investments |
11,564,605 | 9,359,687 | 22,317,174 | 21,188,378 | 16,456,147 | 370,156 | ||||||||||||||||||
| Accumulated net realized gain (loss) on investments |
(2,630,833 | ) | (3,963,793 | ) | (12,248,947 | ) | (11,132,139 | ) | (6,778,475 | ) | 4,835 | |||||||||||||
| Accumulated undistributed (distributions in excess of) net investment income |
(33,363 | ) | 369,842 | 491,830 | 57,747 | — | — | |||||||||||||||||
| Net assets |
$101,634,750 | $57,068,346 | $135,535,220 | $101,946,021 | $71,133,228 | $2,839,206 | ||||||||||||||||||
28
Table of Contents
Statements of Assets and Liabilities – continued
| MFS Lifetime Retirement Income Fund |
MFS Lifetime 2010 Fund |
MFS Lifetime 2020 Fund |
MFS Lifetime 2030 Fund |
MFS Lifetime 2040 Fund |
MFS Lifetime 2050 Fund |
|||||||||||||||||||
| Net Assets |
||||||||||||||||||||||||
| Class A |
$36,344,978 | $12,831,177 | $27,869,223 | $15,665,484 | $10,259,819 | $1,835,997 | ||||||||||||||||||
| Class B |
5,419,346 | 2,763,637 | 5,648,563 | 3,995,891 | 2,243,743 | 171,693 | ||||||||||||||||||
| Class C |
32,200,011 | 6,205,722 | 9,726,526 | 5,593,721 | 3,597,075 | 166,754 | ||||||||||||||||||
| Class I |
5,374,560 | 603,186 | 1,488,475 | 3,008,824 | 2,972,156 | 154,846 | ||||||||||||||||||
| Class R1 |
3,507,213 | 4,348,212 | 9,508,830 | 6,557,746 | 5,203,879 | 121,686 | ||||||||||||||||||
| Class R2 |
12,771,321 | 23,777,460 | 61,509,046 | 48,253,329 | 38,605,905 | 122,282 | ||||||||||||||||||
| Class R3 |
5,882,890 | 6,277,550 | 19,343,851 | 18,169,132 | 7,751,949 | 143,517 | ||||||||||||||||||
| Class R4 |
134,431 | 261,402 | 440,706 | 701,894 | 498,702 | 122,431 | ||||||||||||||||||
| Total net assets |
$101,634,750 | $57,068,346 | $135,535,220 | $101,946,021 | $71,133,228 | $2,839,206 | ||||||||||||||||||
| Shares of beneficial interest outstanding |
||||||||||||||||||||||||
| Class A |
3,213,049 | 1,062,740 | 2,401,090 | 1,375,966 | 907,068 | 151,981 | ||||||||||||||||||
| Class B |
478,950 | 230,721 | 490,235 | 354,404 | 199,522 | 14,240 | ||||||||||||||||||
| Class C |
2,846,189 | 523,024 | 851,044 | 497,811 | 322,436 | 13,830 | ||||||||||||||||||
| Class I |
474,880 | 49,736 | 127,625 | 263,140 | 261,391 | 12,798 | ||||||||||||||||||
| Class R1 |
309,816 | 366,105 | 827,033 | 581,455 | 465,439 | 10,092 | ||||||||||||||||||
| Class R2 |
1,128,309 | 1,984,904 | 5,332,303 | 4,271,352 | 3,435,509 | 10,124 | ||||||||||||||||||
| Class R3 |
519,920 | 519,775 | 1,665,376 | 1,598,599 | 685,458 | 11,872 | ||||||||||||||||||
| Class R4 |
11,871 | 21,578 | 37,824 | 61,450 | 43,889 | 10,120 | ||||||||||||||||||
| Total shares of beneficial interest outstanding |
8,982,984 | 4,758,583 | 11,732,530 | 9,004,177 | 6,320,712 | 235,057 | ||||||||||||||||||
| Class A shares |
||||||||||||||||||||||||
| Net asset value per share |
||||||||||||||||||||||||
| (net assets/shares of beneficial interest outstanding) |
$11.31 | $12.07 | $11.61 | $11.39 | $11.31 | $12.08 | ||||||||||||||||||
| Offering price per share (100 / 94.25 × net asset value per share) |
$12.00 | $12.81 | $12.32 | $12.08 | $12.00 | $12.82 | ||||||||||||||||||
| Class B shares |
||||||||||||||||||||||||
| Net asset value and offering price per share |
||||||||||||||||||||||||
| (net assets/shares of beneficial interest outstanding) |
$11.32 | $11.98 | $11.52 | $11.27 | $11.25 | $12.06 | ||||||||||||||||||
| Class C shares |
||||||||||||||||||||||||
| Net asset value and offering price per share |
||||||||||||||||||||||||
| (net assets/shares of beneficial interest outstanding) |
$11.31 | $11.87 | $11.43 | $11.24 | $11.16 | $12.06 | ||||||||||||||||||
| Class I shares |
||||||||||||||||||||||||
| Net asset value, offering price, and redemption price per share |
||||||||||||||||||||||||
| (net assets/shares of beneficial interest outstanding) |
$11.32 | $12.13 | $11.66 | $11.43 | $11.37 | $12.10 | ||||||||||||||||||
| Class R1 shares |
||||||||||||||||||||||||
| Net asset value, offering price, and redemption price per share |
||||||||||||||||||||||||
| (net assets/shares of beneficial interest outstanding) |
$11.32 | $11.88 | $11.50 | $11.28 | $11.18 | $12.06 | ||||||||||||||||||
| Class R2 shares |
||||||||||||||||||||||||
| Net asset value, offering price, and redemption price per share |
||||||||||||||||||||||||
| (net assets/shares of beneficial interest outstanding) |
$11.32 | $11.98 | $11.54 | $11.30 | $11.24 | $12.08 | ||||||||||||||||||
| Class R3 shares |
||||||||||||||||||||||||
| Net asset value, offering price, and redemption price per share |
||||||||||||||||||||||||
| (net assets/shares of beneficial interest outstanding) |
$11.31 | $12.08 | $11.62 | $11.37 | $11.31 | $12.09 | ||||||||||||||||||
| Class R4 shares |
||||||||||||||||||||||||
| Net asset value, offering price, and redemption price per share |
||||||||||||||||||||||||
| (net assets/shares of beneficial interest outstanding) |
$11.32 | $12.11 | $11.65 | $11.42 | $11.36 | $12.10 | ||||||||||||||||||
On sales of $50,000 or more, the maximum 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
29
Table of Contents
Financial Statements
Year ended 4/30/11
These statements describe how much each fund earned in investment income and accrued in expenses. They also describe any gains or losses generated by each fund’s operations.
| MFS Lifetime Retirement Income Fund |
MFS Lifetime 2010 Fund |
MFS Lifetime 2020 Fund |
MFS Lifetime 2030 Fund |
MFS Lifetime 2040 Fund |
MFS Lifetime 2050 Fund (c) |
|||||||||||||||||||
| Net investment income | ||||||||||||||||||||||||
| Dividends from underlying affiliated funds | $2,216,859 | $1,492,629 | $2,548,576 | $1,175,822 | $660,640 | $21,114 | ||||||||||||||||||
| Interest |
380 | 125 | 160 | 165 | 174 | 432 | ||||||||||||||||||
| Total investment income |
$2,217,239 | $1,492,754 | $2,548,736 | $1,175,987 | $660,814 | $21,546 | ||||||||||||||||||
| Expenses | ||||||||||||||||||||||||
| Distribution and service fees |
427,607 | 271,476 | 579,330 | 401,863 | 280,417 | 4,575 | ||||||||||||||||||
| Shareholder servicing costs |
8,432 | 11,662 | 23,826 | 21,477 | 15,272 | 2,144 | ||||||||||||||||||
| Administrative services fee |
17,500 | 17,500 | 17,500 | 17,500 | 17,500 | 10,933 | ||||||||||||||||||
| Independent Trustees’ compensation |
2,124 | 2,008 | 4,129 | 3,493 | 2,030 | 323 | ||||||||||||||||||
| Custodian fee |
19,023 | 9,538 | 14,791 | 12,392 | 10,734 | 5,770 | ||||||||||||||||||
| Shareholder communications |
8,412 | 9,763 | 10,918 | 10,139 | 9,697 | 2,820 | ||||||||||||||||||
| Auditing fees |
30,944 | 30,944 | 30,944 | 30,944 | 30,944 | 17,980 | ||||||||||||||||||
| Legal fees |
1,116 | 738 | 1,828 | 1,239 | 798 | 17 | ||||||||||||||||||
| Registration fees |
100,695 | 94,290 | 100,937 | 96,272 | 92,917 | 12,184 | ||||||||||||||||||
| Miscellaneous |
16,867 | 16,102 | 18,184 | 17,029 | 16,124 | 10,203 | ||||||||||||||||||
| Total expenses |
$632,720 | $464,021 | $802,387 | $612,348 | $476,433 | $66,949 | ||||||||||||||||||
| Fees paid indirectly |
(6 | ) | — | — | (20 | ) | (4 | ) | — | |||||||||||||||
| Reduction of expenses by investment adviser |
(184,213 | ) | (175,742 | ) | (186,609 | ) | (185,583 | ) | (179,081 | ) | (62,373 | ) | ||||||||||||
| Net expenses |
$448,501 | $288,279 | $615,778 | $426,745 | $297,348 | $4,576 | ||||||||||||||||||
| Net investment income |
$1,768,738 | $1,204,475 | $1,932,958 | $749,242 | $363,466 | $16,970 | ||||||||||||||||||
| Realized and unrealized gain (loss) on investments | ||||||||||||||||||||||||
| Realized gain (loss) (identified cost basis) | ||||||||||||||||||||||||
| Investment transactions from underlying affiliated funds |
$(122,137 | ) | $411,581 | $(905,350 | ) | $(1,210,148 | ) | $(764,290 | ) | $827 | ||||||||||||||
| Capital gain distributions from underlying affiliated funds |
235,135 | 159,924 | 576,985 | 623,680 | 480,997 | 12,215 | ||||||||||||||||||
| Net realized gain (loss) on investments |
$112,998 | $571,505 | $(328,365 | ) | $(586,468 | ) | $(283,293 | ) | $13,042 | |||||||||||||||
| Change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
| Investments |
$5,787,359 | $3,056,334 | $15,500,635 | $15,977,462 | $11,825,537 | $370,156 | ||||||||||||||||||
| Net realized and unrealized gain (loss) on investments |
$5,900,357 | $3,627,839 | $15,172,270 | $15,390,994 | $11,542,244 | $383,198 | ||||||||||||||||||
| Change in net assets from operations |
$7,669,095 | $4,832,314 | $17,105,228 | $16,140,236 | $11,905,710 | $400,168 | ||||||||||||||||||
| (c) | For the period from the commencement of the fund’s investment operations, September 15, 2010, through the stated period end. |
See Notes to Financial Statements
30
Table of Contents
Financial Statements
STATEMENTS OF CHANGES IN NET ASSETS
These statements describe the increases and/or decreases in net assets resulting from operations, any distributions, and any shareholder transactions.
| Year ended 4/30/11 | MFS Lifetime Retirement Income Fund |
MFS Lifetime 2010 Fund |
MFS Lifetime 2020 Fund |
MFS Lifetime 2030 Fund |
MFS Lifetime 2040 Fund |
MFS Lifetime 2050 Fund (c) |
||||||||||||||||||
| Change in net assets | ||||||||||||||||||||||||
| From operations | ||||||||||||||||||||||||
| Net investment income | $1,768,738 | $1,204,475 | $1,932,958 | $749,242 | $363,466 | $16,970 | ||||||||||||||||||
| Net realized gain (loss) on investments |
112,998 | 571,505 | (328,365 | ) | (586,468 | ) | (283,293 | ) | 13,042 | |||||||||||||||
| Net unrealized gain (loss) on investments |
5,787,359 | 3,056,334 | 15,500,635 | 15,977,462 | 11,825,537 | 370,156 | ||||||||||||||||||
| Change in net assets from operations |
$7,669,095 | $4,832,314 | $17,105,228 | $16,140,236 | $11,905,710 | $400,168 | ||||||||||||||||||
| Distributions declared to shareholders | ||||||||||||||||||||||||
| From net investment income |
$(1,950,527 | ) | $(1,287,003 | ) | $(2,275,051 | ) | $(1,185,021 | ) | $(715,994 | ) | $(25,000 | ) | ||||||||||||
| Change in net assets from fund |
$39,599,997 | $5,631,487 | $14,928,962 | $13,109,081 | $10,067,732 | $2,464,038 | ||||||||||||||||||
| Total change in net assets |
$45,318,565 | $9,176,798 | $29,759,139 | $28,064,296 | $21,257,448 | $2,839,206 | ||||||||||||||||||
| Net assets | ||||||||||||||||||||||||
| At beginning of period | 56,316,185 | 47,891,548 | 105,776,081 | 73,881,725 | 49,875,780 | $— | ||||||||||||||||||
| At end of period |
$101,634,750 | $57,068,346 | $135,535,220 | $101,946,021 | $71,133,228 | $2,839,206 | ||||||||||||||||||
| Accumulated undistributed (distributions in |
$(33,363 | ) | $369,842 | $491,830 | $57,747 | $— | $— | |||||||||||||||||
| Year ended 4/30/10 | MFS Lifetime Retirement Income Fund |
MFS Lifetime 2010 Fund |
MFS Lifetime 2020 Fund |
MFS Lifetime 2030 Fund |
MFS Lifetime 2040 Fund |
|||||||||||||||
| Change in net assets | ||||||||||||||||||||
| From operations | ||||||||||||||||||||
| Net investment income | $1,104,698 | $1,152,798 | $1,792,605 | $729,672 | $400,108 | |||||||||||||||
| Net realized gain (loss) on investments |
(3,350 | ) | 123,082 | (1,227,547 | ) | (237,592 | ) | (233,714 | ) | |||||||||||
| Net unrealized gain (loss) on investments |
5,369,124 | 6,198,417 | 22,729,655 | 17,204,177 | 11,867,852 | |||||||||||||||
| Change in net assets from operations |
$6,470,472 | $7,474,297 | $23,294,713 | $17,696,257 | $12,034,246 | |||||||||||||||
| Distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(1,165,688 | ) | $(1,180,001 | ) | $(2,090,006 | ) | $(1,106,052 | ) | $(760,037 | ) | ||||||||||
| From net realized gain on investments |
(6,251 | ) | — | — | — | — | ||||||||||||||
| Total distributions declared to shareholders |
$(1,171,939 | ) | $(1,180,001 | ) | $(2,090,006 | ) | $(1,106,052 | ) | $(760,037 | ) | ||||||||||
| Change in net assets from fund share transactions |
$29,772,233 | $10,522,875 | $17,177,903 | $16,101,603 | $12,294,450 | |||||||||||||||
| Total change in net assets |
$35,070,766 | $16,817,171 | $38,382,610 | $32,691,808 | $23,568,659 | |||||||||||||||
| Net assets | ||||||||||||||||||||
| At beginning of period | 21,245,419 | 31,074,377 | 67,393,471 | 41,189,917 | 26,307,121 | |||||||||||||||
| At end of period |
$56,316,185 | $47,891,548 | $105,776,081 | $73,881,725 | $49,875,780 | |||||||||||||||
| Accumulated undistributed (distributions in excess of) |
$(1,152 | ) | $348,221 | $413,298 | $39,656 | $— | ||||||||||||||
| (c) | For the period from the commencement of the fund’s investment operations September 15, 2010, through the stated period end. |
See Notes to Financial Statements
31
Table of Contents
Financial Statements
MFS LIFETIME RETIREMENT INCOME FUND
The financial highlights table is intended to help you understand the fund financial performance for the past 5 years. Certain information reflects financial results for a single fund share. The total returns in the table represent the rate by which an investor would have earned (or lost) on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
| Years ended 4/30 | ||||||||||||||||||||
| Class A | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$10.59 | $9.00 | $10.09 | $10.36 | $10.00 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (d) | $0.28 | $0.32 | $0.34 | $0.40 | $0.39 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments |
0.74 | 1.61 | (1.04 | ) | (0.13 | ) | 0.36 | |||||||||||||
| Total from investment operations |
$1.02 | $1.93 | $(0.70 | ) | $0.27 | $0.75 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.30 | ) | $(0.34 | ) | $(0.35 | ) | $(0.42 | ) | $(0.38 | ) | ||||||||||
| From net realized gain on investments |
— | (0.00 | )(w) | (0.04 | ) | (0.12 | ) | (0.01 | ) | |||||||||||
| Total distributions declared to shareholders |
$(0.30 | ) | $(0.34 | ) | $(0.39 | ) | $(0.54 | ) | $(0.39 | ) | ||||||||||
| Net asset value, end of period |
$11.31 | $10.59 | $9.00 | $10.09 | $10.36 | |||||||||||||||
| Total return (%) (r)(s)(t) |
9.81 | 21.68 | (6.90 | ) | 2.67 | 7.67 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 0.52 | 0.70 | 1.23 | 1.61 | 3.79 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
0.28 | 0.35 | 0.43 | 0.46 | 0.45 | |||||||||||||||
| Net investment income |
2.61 | 3.20 | 3.72 | 4.01 | 3.79 | |||||||||||||||
| Portfolio turnover |
20 | 12 | 58 | 61 | 22 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$36,345 | $21,257 | $4,940 | $3,397 | $1,954 | |||||||||||||||
| Years ended 4/30 | ||||||||||||||||||||
| Class B | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$10.60 | $9.00 | $10.09 | $10.36 | $10.00 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (d) | $0.20 | $0.25 | $0.28 | $0.35 | $0.32 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments |
0.74 | 1.61 | (1.05 | ) | (0.15 | ) | 0.37 | |||||||||||||
| Total from investment operations |
$0.94 | $1.86 | $(0.77 | ) | $0.20 | $0.69 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.22 | ) | $(0.26 | ) | $(0.28 | ) | $(0.35 | ) | $(0.32 | ) | ||||||||||
| From net realized gain on investments |
— | (0.00 | )(w) | (0.04 | ) | (0.12 | ) | (0.01 | ) | |||||||||||
| Total distributions declared to shareholders |
$(0.22 | ) | $(0.26 | ) | $(0.32 | ) | $(0.47 | ) | $(0.33 | ) | ||||||||||
| Net asset value, end of period |
$11.32 | $10.60 | $9.00 | $10.09 | $10.36 | |||||||||||||||
| Total return (%) (r)(s)(t) |
8.99 | 20.90 | (7.52 | ) | 2.01 | 6.98 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 1.27 | 1.48 | 1.91 | 2.28 | 4.46 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
1.03 | 1.10 | 1.10 | 1.11 | 1.10 | |||||||||||||||
| Net investment income |
1.85 | 2.47 | 3.11 | 3.41 | 3.14 | |||||||||||||||
| Portfolio turnover |
20 | 12 | 58 | 61 | 22 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$5,419 | $3,104 | $1,377 | $771 | $630 | |||||||||||||||
See Notes to Financial Statements
32
Table of Contents
Financial Highlights – continued
MFS LIFETIME RETIREMENT INCOME FUND – continued
| Years ended 4/30 | ||||||||||||||||||||
| Class C | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$10.60 | $9.00 | $10.10 | $10.36 | $10.00 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (d) | $0.20 | $0.25 | $0.29 | $0.35 | $0.31 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments |
0.73 | 1.61 | (1.07 | ) | (0.14 | ) | 0.38 | |||||||||||||
| Total from investment operations |
$0.93 | $1.86 | $(0.78 | ) | $0.21 | $0.69 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.22 | ) | $(0.26 | ) | $(0.28 | ) | $(0.35 | ) | $(0.32 | ) | ||||||||||
| From net realized gain on investments |
— | (0.00 | )(w) | (0.04 | ) | (0.12 | ) | (0.01 | ) | |||||||||||
| Total distributions declared to shareholders |
$(0.22 | ) | $(0.26 | ) | $(0.32 | ) | $(0.47 | ) | $(0.33 | ) | ||||||||||
| Net asset value, end of period |
$11.31 | $10.60 | $9.00 | $10.10 | $10.36 | |||||||||||||||
| Total return (%) (r)(s)(t) |
8.89 | 20.90 | (7.61 | ) | 2.11 | 6.98 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 1.26 | 1.43 | 1.88 | 2.28 | 4.35 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
1.03 | 1.10 | 1.10 | 1.11 | 1.10 | |||||||||||||||
| Net investment income |
1.82 | 2.46 | 3.20 | 3.40 | 3.09 | |||||||||||||||
| Portfolio turnover |
20 | 12 | 58 | 61 | 22 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$32,200 | $15,484 | $2,808 | $1,034 | $778 | |||||||||||||||
| Years ended 4/30 | ||||||||||||||||||||
| Class I | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$10.60 | $9.00 | $10.10 | $10.36 | $10.00 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (d) | $0.32 | $0.34 | $0.37 | $0.40 | $0.41 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments |
0.73 | 1.62 | (1.05 | ) | (0.08 | ) | 0.38 | |||||||||||||
| Total from investment operations |
$1.05 | $1.96 | $(0.68 | ) | $0.32 | $0.79 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.33 | ) | $(0.36 | ) | $(0.38 | ) | $(0.46 | ) | $(0.42 | ) | ||||||||||
| From net realized gain on investments |
— | (0.00 | )(w) | (0.04 | ) | (0.12 | ) | (0.01 | ) | |||||||||||
| Total distributions declared to shareholders |
$(0.33 | ) | $(0.36 | ) | $(0.42 | ) | $(0.58 | ) | $(0.43 | ) | ||||||||||
| Net asset value, end of period |
$11.32 | $10.60 | $9.00 | $10.10 | $10.36 | |||||||||||||||
| Total return (%) (r)(s) |
10.07 | 22.09 | (6.68 | ) | 3.14 | 8.04 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 0.26 | 0.45 | 0.90 | 1.17 | 3.50 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
0.01 | 0.10 | 0.10 | 0.11 | 0.10 | |||||||||||||||
| Net investment income |
2.91 | 3.33 | 4.07 | 4.16 | 4.14 | |||||||||||||||
| Portfolio turnover |
20 | 12 | 58 | 61 | 22 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$5,375 | $557 | $198 | $203 | $67 | |||||||||||||||
See Notes to Financial Statements
33
Table of Contents
Financial Highlights – continued
MFS LIFETIME RETIREMENT INCOME FUND – continued
| Years ended 4/30 | ||||||||||||||||||||
| Class R1 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$10.61 | $9.01 | $10.10 | $10.35 | $10.00 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (d) | $0.21 | $0.25 | $0.29 | $0.39 | $0.32 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments |
0.72 | 1.61 | (1.06 | ) | (0.17 | ) | 0.35 | |||||||||||||
| Total from investment operations |
$0.93 | $1.86 | $(0.77 | ) | $0.22 | $0.67 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.22 | ) | $(0.26 | ) | $(0.28 | ) | $(0.35 | ) | $(0.31 | ) | ||||||||||
| From net realized gain on investments |
— | (0.00 | )(w) | (0.04 | ) | (0.12 | ) | (0.01 | ) | |||||||||||
| Total distributions declared to shareholders |
$(0.22 | ) | $(0.26 | ) | $(0.32 | ) | $(0.47 | ) | $(0.32 | ) | ||||||||||
| Net asset value, end of period |
$11.32 | $10.61 | $9.01 | $10.10 | $10.35 | |||||||||||||||
| Total return (%) (r)(s) |
8.89 | 20.88 | (7.51 | ) | 2.13 | 6.77 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 1.25 | 1.51 | 1.91 | 2.43 | 4.65 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
1.02 | 1.10 | 1.10 | 1.19 | 1.20 | |||||||||||||||
| Net investment income |
1.90 | 2.47 | 3.12 | 3.57 | 3.04 | |||||||||||||||
| Portfolio turnover |
20 | 12 | 58 | 61 | 22 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$3,507 | $1,023 | $691 | $645 | $1,162 | |||||||||||||||
| Years ended 4/30 | ||||||||||||||||||||
| Class R2 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$10.60 | $9.00 | $10.09 | $10.36 | $10.00 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (d) | $0.25 | $0.30 | $0.33 | $0.38 | $0.38 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments |
0.74 | 1.61 | (1.05 | ) | (0.13 | ) | 0.34 | |||||||||||||
| Total from investment operations |
$0.99 | $1.91 | $(0.72 | ) | $0.25 | $0.72 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.27 | ) | $(0.31 | ) | $(0.33 | ) | $(0.40 | ) | $(0.35 | ) | ||||||||||
| From net realized gain on investments |
— | (0.00 | )(w) | (0.04 | ) | (0.12 | ) | (0.01 | ) | |||||||||||
| Total distributions declared to shareholders |
$(0.27 | ) | $(0.31 | ) | $(0.37 | ) | $(0.52 | ) | $(0.36 | ) | ||||||||||
| Net asset value, end of period |
$11.32 | $10.60 | $9.00 | $10.09 | $10.36 | |||||||||||||||
| Total return (%) (r)(s) |
9.53 | 21.49 | (7.05 | ) | 2.42 | 7.35 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 0.77 | 0.99 | 1.40 | 1.84 | 4.23 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
0.53 | 0.60 | 0.60 | 0.69 | 0.75 | |||||||||||||||
| Net investment income |
2.35 | 2.98 | 3.57 | 3.76 | 3.50 | |||||||||||||||
| Portfolio turnover |
20 | 12 | 58 | 61 | 22 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$12,771 | $10,624 | $6,102 | $6,504 | $1,314 | |||||||||||||||
See Notes to Financial Statements
34
Table of Contents
Financial Highlights – continued
MFS LIFETIME RETIREMENT INCOME FUND – continued
| Years ended 4/30 | ||||||||||||||||||||
| Class R3 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$10.60 | $8.99 | $10.09 | $10.35 | $10.00 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (d) | $0.28 | $0.33 | $0.35 | $0.44 | $0.36 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments |
0.73 | 1.62 | (1.06 | ) | (0.16 | ) | 0.38 | |||||||||||||
| Total from investment operations |
$1.01 | $1.95 | $(0.71 | ) | $0.28 | $0.74 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.30 | ) | $(0.34 | ) | $(0.35 | ) | $(0.42 | ) | $(0.38 | ) | ||||||||||
| From net realized gain on investments |
— | (0.00 | )(w) | (0.04 | ) | (0.12 | ) | (0.01 | ) | |||||||||||
| Total distributions declared to shareholders |
$(0.30 | ) | $(0.34 | ) | $(0.39 | ) | $(0.54 | ) | $(0.39 | ) | ||||||||||
| Net asset value, end of period |
$11.31 | $10.60 | $8.99 | $10.09 | $10.35 | |||||||||||||||
| Total return (%) (r)(s) |
9.70 | 21.93 | (6.92 | ) | 2.77 | 7.51 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 0.52 | 0.77 | 1.15 | 1.66 | 3.57 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
0.28 | 0.35 | 0.35 | 0.45 | 0.50 | |||||||||||||||
| Net investment income |
2.60 | 3.29 | 3.82 | 4.14 | 3.62 | |||||||||||||||
| Portfolio turnover |
20 | 12 | 58 | 61 | 22 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$5,883 | $4,151 | $5,071 | $5,616 | $660 | |||||||||||||||
| Years ended 4/30 | ||||||||||||||||||||
| Class R4 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$10.61 | $9.00 | $10.10 | $10.37 | $10.00 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (d) | $0.31 | $0.34 | $0.37 | $0.44 | $0.41 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments |
0.73 | 1.63 | (1.05 | ) | (0.14 | ) | 0.38 | |||||||||||||
| Total from investment operations |
$1.04 | $1.97 | $(0.68 | ) | $0.30 | $0.79 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.33 | ) | $(0.36 | ) | $(0.38 | ) | $(0.45 | ) | $(0.41 | ) | ||||||||||
| From net realized gain on investments |
— | (0.00 | )(w) | (0.04 | ) | (0.12 | ) | (0.01 | ) | |||||||||||
| Total distributions declared to shareholders |
$(0.33 | ) | $(0.36 | ) | $(0.42 | ) | $(0.57 | ) | $(0.42 | ) | ||||||||||
| Net asset value, end of period |
$11.32 | $10.61 | $9.00 | $10.10 | $10.37 | |||||||||||||||
| Total return (%) (r)(s) |
9.97 | 22.21 | (6.67 | ) | 2.97 | 8.04 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 0.27 | 0.47 | 0.88 | 1.42 | 3.58 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
0.03 | 0.10 | 0.10 | 0.16 | 0.20 | |||||||||||||||
| Net investment income |
2.82 | 3.38 | 3.97 | 4.28 | 4.04 | |||||||||||||||
| Portfolio turnover |
20 | 12 | 58 | 61 | 22 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$134 | $116 | $58 | $172 | $55 | |||||||||||||||
| (d) | Per share data is based on average shares outstanding. |
| (f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
| (h) | In addition to the fees and expenses which the fund bears directly, the fund indirectly bears a pro rata share of the fees and expenses of the underlying funds in which the fund invests. Accordingly, the expense ratio for the fund reflects only those fees and expenses borne directly by the fund. Because the underlying funds have varied expense and fee levels and the fund may own different proportions of the underlying funds at different times, the amount of fees and expenses incurred indirectly by the fund will vary. |
| (r) | Certain expenses have been reduced without which performance would have been lower. |
| (s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
| (t) | Total returns do not include any applicable sales charges. |
| (w) | Per share amount was less than $0.01. |
See Notes to Financial Statements
35
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2010 FUND
The financial highlights table is intended to help you understand the fund financial performance for the past 5 years. Certain information reflects financial results for a single fund share. The total returns in the table represent the rate by which an investor would have earned (or lost) on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
| Years ended 4/30 | ||||||||||||||||||||
| Class A | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$11.30 | $9.51 | $10.98 | $11.08 | $10.39 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (d) | $0.30 | $0.34 | $0.34 | $0.37 | $0.35 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments |
0.78 | 1.78 | (1.45 | ) | (0.07 | ) | 0.56 | |||||||||||||
| Total from investment operations |
$1.08 | $2.12 | $(1.11 | ) | $0.30 | $0.91 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.31 | ) | $(0.33 | ) | $(0.35 | ) | $(0.25 | ) | $(0.20 | ) | ||||||||||
| From net realized gain on investments |
— | — | (0.01 | ) | (0.15 | ) | (0.02 | ) | ||||||||||||
| Total distributions declared to shareholders |
$(0.31 | ) | $(0.33 | ) | $(0.36 | ) | $(0.40 | ) | $(0.22 | ) | ||||||||||
| Net asset value, end of period |
$12.07 | $11.30 | $9.51 | $10.98 | $11.08 | |||||||||||||||
| Total return (%) (r)(s)(t) |
9.73 | 22.39 | (9.89 | ) | 2.65 | 8.80 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 0.62 | 0.68 | 0.90 | 1.19 | 2.63 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
0.28 | 0.35 | 0.43 | 0.45 | 0.45 | |||||||||||||||
| Net investment income |
2.59 | 3.16 | 3.44 | 3.42 | 3.25 | |||||||||||||||
| Portfolio turnover |
29 | 14 | 62 | 22 | 27 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$12,831 | $9,605 | $6,136 | $5,308 | $3,058 | |||||||||||||||
| Years ended 4/30 | ||||||||||||||||||||
| Class B | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$11.22 | $9.44 | $10.91 | $11.02 | $10.37 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (d) | $0.21 | $0.26 | $0.27 | $0.29 | $0.28 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments |
0.78 | 1.77 | (1.43 | ) | (0.07 | ) | 0.54 | |||||||||||||
| Total from investment operations |
$0.99 | $2.03 | $(1.16 | ) | $0.22 | $0.82 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.23 | ) | $(0.25 | ) | $(0.30 | ) | $(0.18 | ) | $(0.15 | ) | ||||||||||
| From net realized gain on investments |
— | — | (0.01 | ) | (0.15 | ) | (0.02 | ) | ||||||||||||
| Total distributions declared to shareholders |
$(0.23 | ) | $(0.25 | ) | $(0.31 | ) | $(0.33 | ) | $(0.17 | ) | ||||||||||
| Net asset value, end of period |
$11.98 | $11.22 | $9.44 | $10.91 | $11.02 | |||||||||||||||
| Total return (%) (r)(s)(t) |
8.91 | 21.57 | (10.46 | ) | 2.01 | 7.99 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 1.37 | 1.44 | 1.57 | 1.85 | 3.41 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
1.03 | 1.10 | 1.10 | 1.10 | 1.10 | |||||||||||||||
| Net investment income |
1.84 | 2.42 | 2.77 | 2.75 | 2.59 | |||||||||||||||
| Portfolio turnover |
29 | 14 | 62 | 22 | 27 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$2,764 | $2,096 | $1,762 | $1,578 | $677 | |||||||||||||||
See Notes to Financial Statements
36
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2010 FUND – continued
| Years ended 4/30 | ||||||||||||||||||||
| Class C | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$11.13 | $9.40 | $10.89 | $11.02 | $10.37 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (d) | $0.21 | $0.26 | $0.27 | $0.31 | $0.27 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments |
0.78 | 1.75 | (1.44 | ) | (0.09 | ) | 0.56 | |||||||||||||
| Total from investment operations |
$0.99 | $2.01 | $(1.17 | ) | $0.22 | $0.83 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.25 | ) | $(0.28 | ) | $(0.31 | ) | $(0.20 | ) | $(0.16 | ) | ||||||||||
| From net realized gain on investments |
— | — | (0.01 | ) | (0.15 | ) | (0.02 | ) | ||||||||||||
| Total distributions declared to shareholders |
$(0.25 | ) | $(0.28 | ) | $(0.32 | ) | $(0.35 | ) | $(0.18 | ) | ||||||||||
| Net asset value, end of period |
$11.87 | $11.13 | $9.40 | $10.89 | $11.02 | |||||||||||||||
| Total return (%) (r)(s)(t) |
8.98 | 21.44 | (10.52 | ) | 1.98 | 8.01 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 1.37 | 1.42 | 1.58 | 1.87 | 3.41 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
1.03 | 1.10 | 1.10 | 1.10 | 1.10 | |||||||||||||||
| Net investment income |
1.86 | 2.42 | 2.79 | 2.80 | 2.60 | |||||||||||||||
| Portfolio turnover |
29 | 14 | 62 | 22 | 27 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$6,206 | $4,243 | $2,138 | $946 | $522 | |||||||||||||||
| Years ended 4/30 | ||||||||||||||||||||
| Class I | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$11.35 | $9.54 | $11.02 | $11.11 | $10.41 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (d) | $0.33 | $0.37 | $0.37 | $0.43 | $0.36 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments |
0.79 | 1.79 | (1.46 | ) | (0.09 | ) | 0.57 | |||||||||||||
| Total from investment operations |
$1.12 | $2.16 | $(1.09 | ) | $0.34 | $0.93 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.34 | ) | $(0.35 | ) | $(0.38 | ) | $(0.28 | ) | $(0.21 | ) | ||||||||||
| From net realized gain on investments |
— | — | (0.01 | ) | (0.15 | ) | (0.02 | ) | ||||||||||||
| Total distributions declared to shareholders |
$(0.34 | ) | $(0.35 | ) | $(0.39 | ) | $(0.43 | ) | $(0.23 | ) | ||||||||||
| Net asset value, end of period |
$12.13 | $11.35 | $9.54 | $11.02 | $11.11 | |||||||||||||||
| Total return (%) (r)(s) |
10.01 | 22.79 | (9.64 | ) | 3.02 | 9.05 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 0.37 | 0.44 | 0.55 | 0.84 | 2.63 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
0.03 | 0.10 | 0.10 | 0.10 | 0.10 | |||||||||||||||
| Net investment income |
2.82 | 3.45 | 3.66 | 3.81 | 3.53 | |||||||||||||||
| Portfolio turnover |
29 | 14 | 62 | 22 | 27 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$603 | $499 | $370 | $521 | $546 | |||||||||||||||
See Notes to Financial Statements
37
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2010 FUND – continued
| Years ended 4/30 | ||||||||||||||||||||
| Class R1 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$11.14 | $9.39 | $10.85 | $10.99 | $10.37 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (d) | $0.21 | $0.26 | $0.27 | $0.29 | $0.26 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments |
0.77 | 1.75 | (1.43 | ) | (0.08 | ) | 0.55 | |||||||||||||
| Total from investment operations |
$0.98 | $2.01 | $(1.16 | ) | $0.21 | $0.81 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.24 | ) | $(0.26 | ) | $(0.29 | ) | $(0.20 | ) | $(0.17 | ) | ||||||||||
| From net realized gain on investments |
— | — | (0.01 | ) | (0.15 | ) | (0.02 | ) | ||||||||||||
| Total distributions declared to shareholders |
$(0.24 | ) | $(0.26 | ) | $(0.30 | ) | $(0.35 | ) | $(0.19 | ) | ||||||||||
| Net asset value, end of period |
$11.88 | $11.14 | $9.39 | $10.85 | $10.99 | |||||||||||||||
| Total return (%) (r)(s) |
8.92 | 21.52 | (10.49 | ) | 1.91 | 7.84 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 1.37 | 1.43 | 1.57 | 1.88 | 3.39 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
1.03 | 1.10 | 1.10 | 1.17 | 1.20 | |||||||||||||||
| Net investment income |
1.86 | 2.44 | 2.78 | 2.65 | 2.53 | |||||||||||||||
| Portfolio turnover |
29 | 14 | 62 | 22 | 27 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$4,348 | $3,622 | $2,636 | $2,442 | $829 | |||||||||||||||
| Years ended 4/30 | ||||||||||||||||||||
| Class R2 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$11.22 | $9.45 | $10.92 | $11.04 | $10.38 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (d) | $0.27 | $0.31 | $0.32 | $0.34 | $0.32 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments |
0.77 | 1.77 | (1.44 | ) | (0.07 | ) | 0.54 | |||||||||||||
| Total from investment operations |
$1.04 | $2.08 | $(1.12 | ) | $0.27 | $0.86 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.28 | ) | $(0.31 | ) | $(0.34 | ) | $(0.24 | ) | $(0.18 | ) | ||||||||||
| From net realized gain on investments |
— | — | (0.01 | ) | (0.15 | ) | (0.02 | ) | ||||||||||||
| Total distributions declared to shareholders |
$(0.28 | ) | $(0.31 | ) | $(0.35 | ) | $(0.39 | ) | $(0.20 | ) | ||||||||||
| Net asset value, end of period |
$11.98 | $11.22 | $9.45 | $10.92 | $11.04 | |||||||||||||||
| Total return (%) (r)(s) |
9.42 | 22.11 | (10.06 | ) | 2.40 | 8.36 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 0.87 | 0.92 | 1.07 | 1.46 | 3.03 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
0.53 | 0.60 | 0.60 | 0.68 | 0.75 | |||||||||||||||
| Net investment income |
2.34 | 2.93 | 3.28 | 3.21 | 2.94 | |||||||||||||||
| Portfolio turnover |
29 | 14 | 62 | 22 | 27 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$23,777 | $22,114 | $13,266 | $13,184 | $2,794 | |||||||||||||||
See Notes to Financial Statements
38
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2010 FUND – continued
| Years ended 4/30 | ||||||||||||||||||||
| Class R3 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$11.30 | $9.51 | $10.98 | $11.07 | $10.39 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (d) | $0.29 | $0.34 | $0.35 | $0.39 | $0.35 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments |
0.80 | 1.78 | (1.46 | ) | (0.09 | ) | 0.54 | |||||||||||||
| Total from investment operations |
$1.09 | $2.12 | $(1.11 | ) | $0.30 | $0.89 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.31 | ) | $(0.33 | ) | $(0.35 | ) | $(0.24 | ) | $(0.19 | ) | ||||||||||
| From net realized gain on investments |
— | — | (0.01 | ) | (0.15 | ) | (0.02 | ) | ||||||||||||
| Total distributions declared to shareholders |
$(0.31 | ) | $(0.33 | ) | $(0.36 | ) | $(0.39 | ) | $(0.21 | ) | ||||||||||
| Net asset value, end of period |
$12.08 | $11.30 | $9.51 | $10.98 | $11.07 | |||||||||||||||
| Total return (%) (r)(s) |
9.74 | 22.39 | (9.85 | ) | 2.68 | 8.67 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 0.62 | 0.69 | 0.81 | 1.21 | 2.47 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
0.28 | 0.35 | 0.35 | 0.45 | 0.50 | |||||||||||||||
| Net investment income |
2.55 | 3.19 | 3.49 | 3.44 | 3.14 | |||||||||||||||
| Portfolio turnover |
29 | 14 | 62 | 22 | 27 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$6,278 | $5,536 | $4,658 | $5,796 | $4,685 | |||||||||||||||
| Years ended 4/30 | ||||||||||||||||||||
| Class R4 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$11.34 | $9.53 | $11.01 | $11.11 | $10.40 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (d) | $0.33 | $0.36 | $0.37 | $0.42 | $0.37 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments |
0.78 | 1.80 | (1.46 | ) | (0.10 | ) | 0.57 | |||||||||||||
| Total from investment operations |
$1.11 | $2.16 | $(1.09 | ) | $0.32 | $0.94 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.34 | ) | $(0.35 | ) | $(0.38 | ) | $(0.27 | ) | $(0.21 | ) | ||||||||||
| From net realized gain on investments |
— | — | (0.01 | ) | (0.15 | ) | (0.02 | ) | ||||||||||||
| Total distributions declared to shareholders |
$(0.34 | ) | $(0.35 | ) | $(0.39 | ) | $(0.42 | ) | $(0.23 | ) | ||||||||||
| Net asset value, end of period |
$12.11 | $11.34 | $9.53 | $11.01 | $11.11 | |||||||||||||||
| Total return (%) (r)(s) |
9.93 | 22.81 | (9.64 | ) | 2.89 | 9.06 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 0.37 | 0.43 | 0.52 | 0.98 | 2.80 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
0.04 | 0.10 | 0.10 | 0.15 | 0.20 | |||||||||||||||
| Net investment income |
2.84 | 3.39 | 3.48 | 3.84 | 3.46 | |||||||||||||||
| Portfolio turnover |
29 | 14 | 62 | 22 | 27 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$261 | $176 | $108 | $582 | $57 | |||||||||||||||
| (d) | Per share data is based on average shares outstanding. |
| (f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
| (h) | In addition to the fees and expenses which the fund bears directly, the fund indirectly bears a pro rata share of the fees and expenses of the underlying funds in which the fund invests. Accordingly, the expense ratio for the fund reflects only those fees and expenses borne directly by the fund. Because the underlying funds have varied expense and fee levels and the fund may own different proportions of the underlying funds at different times, the amount of fees and expenses incurred indirectly by the fund will vary. |
| (r) | Certain expenses have been reduced without which performance would have been lower. |
| (s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
| (t) | Total returns do not include any applicable sales charges. |
See Notes to Financial Statements
39
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2020 FUND
The financial highlights table is intended to help you understand the fund financial performance for the past 5 years Certain information reflects financial results for a single fund share. The total returns in the table represent the rate by which an investor would have earned (or lost) on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
| Years ended 4/30 | ||||||||||||||||||||
| Class A | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$10.30 | $7.97 | $11.36 | $11.85 | $10.85 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (d) | $0.20 | $0.22 | $0.21 | $0.22 | $0.18 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments |
1.34 | 2.36 | (3.28 | ) | (0.15 | ) | 1.03 | |||||||||||||
| Total from investment operations |
$1.54 | $2.58 | $(3.07 | ) | $0.07 | $1.21 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.23 | ) | $(0.25 | ) | $(0.26 | ) | $(0.24 | ) | $(0.15 | ) | ||||||||||
| From net realized gain on investments |
— | — | (0.06 | ) | (0.32 | ) | (0.06 | ) | ||||||||||||
| Total distributions declared to shareholders |
$(0.23 | ) | $(0.25 | ) | $(0.32 | ) | $(0.56 | ) | $(0.21 | ) | ||||||||||
| Net asset value, end of period |
$11.61 | $10.30 | $7.97 | $11.36 | $11.85 | |||||||||||||||
| Total return (%) (r)(s)(t) |
15.11 | 32.47 | (26.93 | ) | 0.47 | 11.26 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 0.44 | 0.46 | 0.60 | 0.74 | 1.26 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
0.28 | 0.35 | 0.43 | 0.45 | 0.45 | |||||||||||||||
| Net investment income |
1.91 | 2.28 | 2.35 | 1.86 | 1.63 | |||||||||||||||
| Portfolio turnover |
19 | 9 | 38 | 15 | 7 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$27,869 | $20,097 | $10,928 | $10,843 | $8,188 | |||||||||||||||
| Years ended 4/30 | ||||||||||||||||||||
| Class B | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$10.23 | $7.92 | $11.28 | $11.79 | $10.82 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (d) | $0.12 | $0.15 | $0.15 | $0.14 | $0.11 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments |
1.33 | 2.34 | (3.26 | ) | (0.15 | ) | 1.02 | |||||||||||||
| Total from investment operations |
$1.45 | $2.49 | $(3.11 | ) | $(0.01 | ) | $1.13 | |||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.16 | ) | $(0.18 | ) | $(0.19 | ) | $(0.18 | ) | $(0.10 | ) | ||||||||||
| From net realized gain on investments |
— | — | (0.06 | ) | (0.32 | ) | (0.06 | ) | ||||||||||||
| Total distributions declared to shareholders |
$(0.16 | ) | $(0.18 | ) | $(0.25 | ) | $(0.50 | ) | $(0.16 | ) | ||||||||||
| Net asset value, end of period |
$11.52 | $10.23 | $7.92 | $11.28 | $11.79 | |||||||||||||||
| Total return (%) (r)(s)(t) |
14.23 | 31.53 | (27.49 | ) | (0.23 | ) | 10.57 | |||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 1.19 | 1.22 | 1.26 | 1.39 | 1.92 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
1.03 | 1.10 | 1.10 | 1.10 | 1.10 | |||||||||||||||
| Net investment income |
1.16 | 1.55 | 1.63 | 1.23 | 1.01 | |||||||||||||||
| Portfolio turnover |
19 | 9 | 38 | 15 | 7 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$5,649 | $4,418 | $3,176 | $4,423 | $3,428 | |||||||||||||||
See Notes to Financial Statements
40
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2020 FUND – continued
| Years ended 4/30 | ||||||||||||||||||||
| Class C | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$10.16 | $7.88 | $11.24 | $11.78 | $10.83 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (d) | $0.12 | $0.15 | $0.14 | $0.15 | $0.12 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments |
1.32 | 2.32 | (3.24 | ) | (0.16 | ) | 1.01 | |||||||||||||
| Total from investment operations |
$1.44 | $2.47 | $(3.10 | ) | $(0.01 | ) | $1.13 | |||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.17 | ) | $(0.19 | ) | $(0.20 | ) | $(0.21 | ) | $(0.12 | ) | ||||||||||
| From net realized gain on investments |
— | — | (0.06 | ) | (0.32 | ) | (0.06 | ) | ||||||||||||
| Total distributions declared to shareholders |
$(0.17 | ) | $(0.19 | ) | $(0.26 | ) | $(0.53 | ) | $(0.18 | ) | ||||||||||
| Net asset value, end of period |
$11.43 | $10.16 | $7.88 | $11.24 | $11.78 | |||||||||||||||
| Total return (%) (r)(s)(t) |
14.27 | 31.52 | (27.49 | ) | (0.26 | ) | 10.58 | |||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 1.19 | 1.21 | 1.27 | 1.39 | 1.86 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
1.03 | 1.10 | 1.10 | 1.10 | 1.10 | |||||||||||||||
| Net investment income |
1.17 | 1.58 | 1.62 | 1.31 | 1.07 | |||||||||||||||
| Portfolio turnover |
19 | 9 | 38 | 15 | 7 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$9,727 | $5,978 | $3,036 | $2,529 | $1,148 | |||||||||||||||
| Years ended 4/30 | ||||||||||||||||||||
| Class I | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$10.34 | $8.00 | $11.41 | $11.90 | $10.87 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (d) | $0.23 | $0.24 | $0.24 | $0.28 | $0.22 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments |
1.34 | 2.37 | (3.30 | ) | (0.17 | ) | 1.04 | |||||||||||||
| Total from investment operations |
$1.57 | $2.61 | $(3.06 | ) | $0.11 | $1.26 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.25 | ) | $(0.27 | ) | $(0.29 | ) | $(0.28 | ) | $(0.17 | ) | ||||||||||
| From net realized gain on investments |
— | — | (0.06 | ) | (0.32 | ) | (0.06 | ) | ||||||||||||
| Total distributions declared to shareholders |
$(0.25 | ) | $(0.27 | ) | $(0.35 | ) | $(0.60 | ) | $(0.23 | ) | ||||||||||
| Net asset value, end of period |
$11.66 | $10.34 | $8.00 | $11.41 | $11.90 | |||||||||||||||
| Total return (%) (r)(s) |
15.39 | 32.75 | (26.72 | ) | 0.76 | 11.71 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 0.19 | 0.22 | 0.27 | 0.41 | 0.96 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
0.03 | 0.10 | 0.10 | 0.10 | 0.10 | |||||||||||||||
| Net investment income |
2.19 | 2.57 | 2.65 | 2.32 | 1.97 | |||||||||||||||
| Portfolio turnover |
19 | 9 | 38 | 15 | 7 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$1,488 | $857 | $645 | $690 | $613 | |||||||||||||||
See Notes to Financial Statements
41
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2020 FUND – continued
| Years ended 4/30 | ||||||||||||||||||||
| Class R1 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$10.20 | $7.90 | $11.23 | $11.78 | $10.83 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (d) | $0.12 | $0.14 | $0.14 | $0.14 | $0.10 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments |
1.33 | 2.34 | (3.23 | ) | (0.16 | ) | 1.02 | |||||||||||||
| Total from investment operations |
$1.45 | $2.48 | $(3.09 | ) | $(0.02 | ) | $1.12 | |||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.15 | ) | $(0.18 | ) | $(0.18 | ) | $(0.21 | ) | $(0.11 | ) | ||||||||||
| From net realized gain on investments |
— | — | (0.06 | ) | (0.32 | ) | (0.06 | ) | ||||||||||||
| Total distributions declared to shareholders |
$(0.15 | ) | $(0.18 | ) | $(0.24 | ) | $(0.53 | ) | $(0.17 | ) | ||||||||||
| Net asset value, end of period |
$11.50 | $10.20 | $7.90 | $11.23 | $11.78 | |||||||||||||||
| Total return (%) (r)(s) |
14.26 | 31.53 | (27.46 | ) | (0.28 | ) | 10.41 | |||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 1.19 | 1.22 | 1.26 | 1.45 | 2.08 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
1.03 | 1.10 | 1.10 | 1.17 | 1.20 | |||||||||||||||
| Net investment income |
1.14 | 1.55 | 1.53 | 1.22 | 0.90 | |||||||||||||||
| Portfolio turnover |
19 | 9 | 38 | 15 | 7 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$9,509 | $9,195 | $6,757 | $8,935 | $2,549 | |||||||||||||||
| Years ended 4/30 | ||||||||||||||||||||
| Class R2 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$10.24 | $7.93 | $11.31 | $11.83 | $10.84 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (d) | $0.18 | $0.19 | $0.19 | $0.18 | $0.15 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments |
1.33 | 2.35 | (3.26 | ) | (0.15 | ) | 1.03 | |||||||||||||
| Total from investment operations |
$1.51 | $2.54 | $(3.07 | ) | $0.03 | $1.18 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.21 | ) | $(0.23 | ) | $(0.25 | ) | $(0.23 | ) | $(0.13 | ) | ||||||||||
| From net realized gain on investments |
— | — | (0.06 | ) | (0.32 | ) | (0.06 | ) | ||||||||||||
| Total distributions declared to shareholders |
$(0.21 | ) | $(0.23 | ) | $(0.31 | ) | $(0.55 | ) | $(0.19 | ) | ||||||||||
| Net asset value, end of period |
$11.54 | $10.24 | $7.93 | $11.31 | $11.83 | |||||||||||||||
| Total return (%) (r)(s) |
14.84 | 32.13 | (27.05 | ) | 0.09 | 11.03 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 0.69 | 0.72 | 0.77 | 0.98 | 1.62 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
0.53 | 0.60 | 0.60 | 0.69 | 0.75 | |||||||||||||||
| Net investment income |
1.66 | 2.06 | 2.18 | 1.63 | 1.36 | |||||||||||||||
| Portfolio turnover |
19 | 9 | 38 | 15 | 7 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$61,509 | $49,039 | $31,030 | $30,874 | $10,494 | |||||||||||||||
See Notes to Financial Statements
42
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2020 FUND – continued
| Years ended 4/30 | ||||||||||||||||||||
| Class R3 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$10.30 | $7.97 | $11.36 | $11.85 | $10.86 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (d) | $0.20 | $0.22 | $0.21 | $0.22 | $0.19 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments |
1.35 | 2.36 | (3.28 | ) | (0.15 | ) | 1.01 | |||||||||||||
| Total from investment operations |
$1.55 | $2.58 | $(3.07 | ) | $0.07 | $1.20 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.23 | ) | $(0.25 | ) | $(0.26 | ) | $(0.24 | ) | $(0.15 | ) | ||||||||||
| From net realized gain on investments |
— | — | (0.06 | ) | (0.32 | ) | (0.06 | ) | ||||||||||||
| Total distributions declared to shareholders |
$(0.23 | ) | $(0.25 | ) | $(0.32 | ) | $(0.56 | ) | $(0.21 | ) | ||||||||||
| Net asset value, end of period |
$11.62 | $10.30 | $7.97 | $11.36 | $11.85 | |||||||||||||||
| Total return (%) (r)(s) |
15.18 | 32.47 | (26.91 | ) | 0.43 | 11.15 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 0.44 | 0.47 | 0.51 | 0.75 | 1.26 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
0.28 | 0.35 | 0.35 | 0.45 | 0.50 | |||||||||||||||
| Net investment income |
1.91 | 2.31 | 2.33 | 1.87 | 1.67 | |||||||||||||||
| Portfolio turnover |
19 | 9 | 38 | 15 | 7 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$19,344 | $15,848 | $11,616 | $16,151 | $11,326 | |||||||||||||||
| Years ended 4/30 | ||||||||||||||||||||
| Class R4 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$10.34 | $7.99 | $11.40 | $11.90 | $10.87 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (d) | $0.21 | $0.24 | $0.22 | $0.26 | $0.21 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments |
1.35 | 2.38 | (3.28 | ) | (0.17 | ) | 1.04 | |||||||||||||
| Total from investment operations |
$1.56 | $2.62 | $(3.06 | ) | $0.09 | $1.25 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.25 | ) | $(0.27 | ) | $(0.29 | ) | $(0.27 | ) | $(0.16 | ) | ||||||||||
| From net realized gain on investments |
— | — | (0.06 | ) | (0.32 | ) | (0.06 | ) | ||||||||||||
| Total distributions declared to shareholders |
$(0.25 | ) | $(0.27 | ) | $(0.35 | ) | $(0.59 | ) | $(0.22 | ) | ||||||||||
| Net asset value, end of period |
$11.65 | $10.34 | $7.99 | $11.40 | $11.90 | |||||||||||||||
| Total return (%) (r)(s) |
15.29 | 32.92 | (26.75 | ) | 0.64 | 11.61 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 0.19 | 0.21 | 0.23 | 0.48 | 1.09 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
0.05 | 0.10 | 0.10 | 0.15 | 0.20 | |||||||||||||||
| Net investment income |
2.03 | 2.54 | 1.99 | 2.36 | 1.88 | |||||||||||||||
| Portfolio turnover |
19 | 9 | 38 | 15 | 7 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$441 | $344 | $204 | $2,283 | $62 | |||||||||||||||
| (d) | Per share data is based on average shares outstanding. |
| (f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
| (h) | In addition to the fees and expenses which the fund bears directly, the fund indirectly bears a pro rata share of the fees and expenses of the underlying funds in which the fund invests. Accordingly, the expense ratio for the fund reflects only those fees and expenses borne directly by the fund. Because the underlying funds have varied expense and fee levels and the fund may own different proportions of the underlying funds at different times, the amount of fees and expenses incurred indirectly by the fund will vary. |
| (r) | Certain expenses have been reduced without which performance would have been lower. |
| (s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
| (t) | Total returns do not include any applicable sales charges. |
See Notes to Financial Statements
43
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2030 FUND
The financial highlights table is intended to help you understand the fund financial performance for the past 5 years. Certain information reflects financial results for a single fund share. The total returns in the table represent the rate by which an investor would have earned (or lost) on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
| Years ended 4/30 | ||||||||||||||||||||
| Class A | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$9.66 | $7.08 | $11.41 | $12.24 | $11.10 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (d) | $0.11 | $0.13 | $0.08 | $0.07 | $0.07 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments |
1.78 | 2.63 | (4.14 | ) | (0.24 | ) | 1.20 | |||||||||||||
| Total from investment operations |
$1.89 | $2.76 | $(4.06 | ) | $(0.17 | ) | $1.27 | |||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.16 | ) | $(0.18 | ) | $(0.16 | ) | $(0.20 | ) | $(0.12 | ) | ||||||||||
| From net realized gain on investments |
— | — | (0.11 | ) | (0.46 | ) | (0.01 | ) | ||||||||||||
| Total distributions declared to shareholders |
$(0.16 | ) | $(0.18 | ) | $(0.27 | ) | $(0.66 | ) | $(0.13 | ) | ||||||||||
| Net asset value, end of period |
$11.39 | $9.66 | $7.08 | $11.41 | $12.24 | |||||||||||||||
| Total return (%) (r)(s)(t) |
19.70 | 39.08 | (35.45 | ) | (1.65 | ) | 11.57 | |||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 0.50 | 0.55 | 0.74 | 0.87 | 1.84 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
0.28 | 0.35 | 0.44 | 0.45 | 0.45 | |||||||||||||||
| Net investment income |
1.13 | 1.45 | 0.98 | 0.60 | 0.63 | |||||||||||||||
| Portfolio turnover |
15 | 6 | 38 | 14 | 17 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$15,665 | $9,817 | $4,634 | $5,917 | $4,758 | |||||||||||||||
| Years ended 4/30 | ||||||||||||||||||||
| Class B | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$9.58 | $7.03 | $11.32 | $12.17 | $11.07 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) | $0.04 | $0.06 | $0.02 | $(0.00 | )(w) | $(0.00 | )(w) | |||||||||||||
| Net realized and unrealized gain (loss) on investments |
1.74 | 2.61 | (4.09 | ) | (0.25 | ) | 1.19 | |||||||||||||
| Total from investment operations |
$1.78 | $2.67 | $(4.07 | ) | $(0.25 | ) | $1.19 | |||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.09 | ) | $(0.12 | ) | $(0.11 | ) | $(0.14 | ) | $(0.08 | ) | ||||||||||
| From net realized gain on investments |
— | — | (0.11 | ) | (0.46 | ) | (0.01 | ) | ||||||||||||
| Total distributions declared to shareholders |
$(0.09 | ) | $(0.12 | ) | $(0.22 | ) | $(0.60 | ) | $(0.09 | ) | ||||||||||
| Net asset value, end of period |
$11.27 | $9.58 | $7.03 | $11.32 | $12.17 | |||||||||||||||
| Total return (%) (r)(s)(t) |
18.69 | 38.07 | (35.89 | ) | (2.30 | ) | 10.80 | |||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 1.25 | 1.31 | 1.41 | 1.53 | 2.54 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
1.03 | 1.10 | 1.10 | 1.10 | 1.10 | |||||||||||||||
| Net investment income (loss) |
0.37 | 0.72 | 0.24 | (0.02 | ) | (0.04 | ) | |||||||||||||
| Portfolio turnover |
15 | 6 | 38 | 14 | 17 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$3,996 | $2,911 | $1,735 | $2,195 | $1,269 | |||||||||||||||
See Notes to Financial Statements
44
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2030 FUND – continued
| Years ended 4/30 | ||||||||||||||||||||
| Class C | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$9.56 | $7.03 | $11.34 | $12.20 | $11.08 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) | $0.04 | $0.06 | $0.03 | $(0.00 | )(w) | $(0.02 | ) | |||||||||||||
| Net realized and unrealized gain (loss) on investments |
1.75 | 2.60 | (4.10 | ) | (0.25 | ) | 1.20 | |||||||||||||
| Total from investment operations |
$1.79 | $2.66 | $(4.07 | ) | $(0.25 | ) | $1.18 | |||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.11 | ) | $(0.13 | ) | $(0.13 | ) | $(0.15 | ) | $(0.05 | ) | ||||||||||
| From net realized gain on investments |
— | — | (0.11 | ) | (0.46 | ) | (0.01 | ) | ||||||||||||
| Total distributions declared to shareholders |
$(0.11 | ) | $(0.13 | ) | $(0.24 | ) | $(0.61 | ) | $(0.06 | ) | ||||||||||
| Net asset value, end of period |
$11.24 | $9.56 | $7.03 | $11.34 | $12.20 | |||||||||||||||
| Total return (%) (r)(s)(t) |
18.81 | 37.90 | (35.82 | ) | (2.29 | ) | 10.72 | |||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 1.25 | 1.30 | 1.42 | 1.53 | 2.61 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
1.02 | 1.10 | 1.10 | 1.10 | 1.10 | |||||||||||||||
| Net investment income (loss) |
0.39 | 0.70 | 0.42 | (0.01 | ) | (0.16 | ) | |||||||||||||
| Portfolio turnover |
15 | 6 | 38 | 14 | 17 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$5,594 | $2,495 | $981 | $801 | $450 | |||||||||||||||
| Years ended 4/30 | ||||||||||||||||||||
| Class I | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$9.70 | $7.11 | $11.46 | $12.29 | $11.12 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (d) | $0.14 | $0.16 | $0.11 | $0.10 | $0.10 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments |
1.77 | 2.63 | (4.16 | ) | (0.24 | ) | 1.22 | |||||||||||||
| Total from investment operations |
$1.91 | $2.79 | $(4.05 | ) | $(0.14 | ) | $1.32 | |||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.18 | ) | $(0.20 | ) | $(0.19 | ) | $(0.23 | ) | $(0.14 | ) | ||||||||||
| From net realized gain on investments |
— | — | (0.11 | ) | (0.46 | ) | (0.01 | ) | ||||||||||||
| Total distributions declared to shareholders |
$(0.18 | ) | $(0.20 | ) | $(0.30 | ) | $(0.69 | ) | $(0.15 | ) | ||||||||||
| Net asset value, end of period |
$11.43 | $9.70 | $7.11 | $11.46 | $12.29 | |||||||||||||||
| Total return (%) (r)(s) |
19.85 | 39.32 | (35.18 | ) | (1.35 | ) | 11.99 | |||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 0.25 | 0.32 | 0.41 | 0.52 | 1.62 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
0.03 | 0.10 | 0.10 | 0.10 | 0.10 | |||||||||||||||
| Net investment income |
1.35 | 1.79 | 1.29 | 0.86 | 0.91 | |||||||||||||||
| Portfolio turnover |
15 | 6 | 38 | 14 | 17 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$3,009 | $1,958 | $1,149 | $1,308 | $1,314 | |||||||||||||||
See Notes to Financial Statements
45
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2030 FUND – continued
| Years ended 4/30 | ||||||||||||||||||||
| Class R1 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$9.57 | $7.03 | $11.29 | $12.17 | $11.08 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) | $0.03 | $0.07 | $0.02 | $(0.01 | ) | $(0.02 | ) | |||||||||||||
| Net realized and unrealized gain (loss) on investments |
1.76 | 2.60 | (4.08 | ) | (0.26 | ) | 1.20 | |||||||||||||
| Total from investment operations |
$1.79 | $2.67 | $(4.06 | ) | $(0.27 | ) | $1.18 | |||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.08 | ) | $(0.13 | ) | $(0.09 | ) | $(0.15 | ) | $(0.08 | ) | ||||||||||
| From net realized gain on investments |
— | — | (0.11 | ) | (0.46 | ) | (0.01 | ) | ||||||||||||
| Total distributions declared to shareholders |
$(0.08 | ) | $(0.13 | ) | $(0.20 | ) | $(0.61 | ) | $(0.09 | ) | ||||||||||
| Net asset value, end of period |
$11.28 | $9.57 | $7.03 | $11.29 | $12.17 | |||||||||||||||
| Total return (%) (r)(s) |
18.76 | 38.06 | (35.87 | ) | (2.42 | ) | 10.72 | |||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 1.25 | 1.31 | 1.40 | 1.58 | 2.69 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
1.03 | 1.10 | 1.10 | 1.17 | 1.20 | |||||||||||||||
| Net investment income (loss) |
0.35 | 0.79 | 0.24 | (0.12 | ) | (0.14 | ) | |||||||||||||
| Portfolio turnover |
15 | 6 | 38 | 14 | 17 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$6,558 | $6,389 | $3,717 | $5,671 | $1,330 | |||||||||||||||
| Years ended 4/30 | ||||||||||||||||||||
| Class R2 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$9.59 | $7.04 | $11.35 | $12.20 | $11.09 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (d) | $0.09 | $0.11 | $0.07 | $0.05 | $0.04 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments |
1.76 | 2.60 | (4.11 | ) | (0.26 | ) | 1.19 | |||||||||||||
| Total from investment operations |
$1.85 | $2.71 | $(4.04 | ) | $(0.21 | ) | $1.23 | |||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.14 | ) | $(0.16 | ) | $(0.16 | ) | $(0.18 | ) | $(0.11 | ) | ||||||||||
| From net realized gain on investments |
— | — | (0.11 | ) | (0.46 | ) | (0.01 | ) | ||||||||||||
| Total distributions declared to shareholders |
$(0.14 | ) | $(0.16 | ) | $(0.27 | ) | $(0.64 | ) | $(0.12 | ) | ||||||||||
| Net asset value, end of period |
$11.30 | $9.59 | $7.04 | $11.35 | $12.20 | |||||||||||||||
| Total return (%) (r)(s) |
19.38 | 38.63 | (35.51 | ) | (1.93 | ) | 11.18 | |||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 0.75 | 0.81 | 0.91 | 1.12 | 2.21 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
0.53 | 0.60 | 0.60 | 0.68 | 0.75 | |||||||||||||||
| Net investment income |
0.88 | 1.25 | 0.89 | 0.42 | 0.35 | |||||||||||||||
| Portfolio turnover |
15 | 6 | 38 | 14 | 17 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$48,253 | $36,518 | $20,269 | $21,426 | $5,980 | |||||||||||||||
See Notes to Financial Statements
46
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2030 FUND – continued
| Years ended 4/30 | ||||||||||||||||||||
| Class R3 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$9.64 | $7.07 | $11.40 | $12.23 | $11.10 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (d) | $0.11 | $0.13 | $0.10 | $0.07 | $0.08 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments |
1.78 | 2.62 | (4.15 | ) | (0.25 | ) | 1.18 | |||||||||||||
| Total from investment operations |
$1.89 | $2.75 | $(4.05 | ) | $(0.18 | ) | $1.26 | |||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.16 | ) | $(0.18 | ) | $(0.17 | ) | $(0.19 | ) | $(0.12 | ) | ||||||||||
| From net realized gain on investments |
— | — | (0.11 | ) | (0.46 | ) | (0.01 | ) | ||||||||||||
| Total distributions declared to shareholders |
$(0.16 | ) | $(0.18 | ) | $(0.28 | ) | $(0.65 | ) | $(0.13 | ) | ||||||||||
| Net asset value, end of period |
$11.37 | $9.64 | $7.07 | $11.40 | $12.23 | |||||||||||||||
| Total return (%) (r)(s) |
19.73 | 38.99 | (35.40 | ) | (1.69 | ) | 11.49 | |||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 0.50 | 0.56 | 0.65 | 0.88 | 1.79 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
0.28 | 0.35 | 0.35 | 0.45 | 0.50 | |||||||||||||||
| Net investment income |
1.14 | 1.50 | 1.16 | 0.61 | 0.69 | |||||||||||||||
| Portfolio turnover |
15 | 6 | 38 | 14 | 17 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$18,169 | $13,516 | $8,597 | $12,012 | $8,198 | |||||||||||||||
| Years ended 4/30 | ||||||||||||||||||||
| Class R4 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$9.69 | $7.10 | $11.44 | $12.28 | $11.12 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (d) | $0.14 | $0.14 | $0.04 | $0.13 | $0.09 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments |
1.77 | 2.65 | (4.08 | ) | (0.28 | ) | 1.21 | |||||||||||||
| Total from investment operations |
$1.91 | $2.79 | $(4.04 | ) | $(0.15 | ) | $1.30 | |||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.18 | ) | $(0.20 | ) | $(0.19 | ) | $(0.23 | ) | $(0.13 | ) | ||||||||||
| From net realized gain on investments |
— | — | (0.11 | ) | (0.46 | ) | (0.01 | ) | ||||||||||||
| Total distributions declared to shareholders |
$(0.18 | ) | $(0.20 | ) | $(0.30 | ) | $(0.69 | ) | $(0.14 | ) | ||||||||||
| Net asset value, end of period |
$11.42 | $9.69 | $7.10 | $11.44 | $12.28 | |||||||||||||||
| Total return (%) (r)(s) |
19.87 | 39.38 | (35.16 | ) | (1.47 | ) | 11.80 | |||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 0.25 | 0.29 | 0.33 | 0.60 | 1.78 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
0.03 | 0.10 | 0.10 | 0.15 | 0.20 | |||||||||||||||
| Net investment income |
1.42 | 1.64 | 0.40 | 1.12 | 0.85 | |||||||||||||||
| Portfolio turnover |
15 | 6 | 38 | 14 | 17 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$702 | $278 | $108 | $2,321 | $63 | |||||||||||||||
| (d) | Per share data is based on average shares outstanding. |
| (f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
| (h) | In addition to the fees and expenses which the fund bears directly, the fund indirectly bears a pro rata share of the fees and expenses of the underlying funds in which the fund invests. Accordingly, the expense ratio for the fund reflects only those fees and expenses borne directly by the fund. Because the underlying funds have varied expense and fee levels and the fund may own different proportions of the underlying funds at different times, the amount of fees and expenses incurred indirectly by the fund will vary. |
| (r) | Certain expenses have been reduced without which performance would have been lower. |
| (s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
| (t) | Total returns do not include any applicable sales charges. |
| (w) | Per share amount was less than $0.01. |
See Notes to Financial Statements
47
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2040 FUND
The financial highlights table is intended to help you understand the fund financial performance for the past 5 years. Certain information reflects financial results for a single fund share. The total returns in the table represent the rate by which an investor would have earned (or lost) on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
| Years ended 4/30 | ||||||||||||||||||||
| Class A | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$9.49 | $6.90 | $11.37 | $12.27 | $11.10 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (d) | $0.08 | $0.10 | $0.06 | $0.04 | $0.04 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments |
1.88 | 2.66 | (4.30 | ) | (0.27 | ) | 1.27 | |||||||||||||
| Total from investment operations |
$1.96 | $2.76 | $(4.24 | ) | $(0.23 | ) | $1.31 | |||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.14 | ) | $(0.17 | ) | $(0.14 | ) | $(0.18 | ) | $(0.09 | ) | ||||||||||
| From net realized gain on investments |
— | — | (0.09 | ) | (0.49 | ) | (0.05 | ) | ||||||||||||
| Total distributions declared to shareholders |
$(0.14 | ) | $(0.17 | ) | $(0.23 | ) | $(0.67 | ) | $(0.14 | ) | ||||||||||
| Net asset value, end of period |
$11.31 | $9.49 | $6.90 | $11.37 | $12.27 | |||||||||||||||
| Total return (%) (r)(s)(t) |
20.78 | 40.17 | (37.10 | ) | (2.12 | ) | 11.86 | |||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 0.59 | 0.69 | 1.01 | 1.27 | 2.75 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
0.28 | 0.35 | 0.43 | 0.45 | 0.45 | |||||||||||||||
| Net investment income |
0.85 | 1.21 | 0.70 | 0.34 | 0.38 | |||||||||||||||
| Portfolio turnover |
14 | 8 | 33 | 11 | 11 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$10,260 | $6,861 | $3,121 | $2,978 | $3,420 | |||||||||||||||
| Years ended 4/30 | ||||||||||||||||||||
| Class B | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$9.44 | $6.88 | $11.29 | $12.21 | $11.08 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) | $0.01 | $0.04 | $(0.00 | )(w) | $(0.03 | ) | $(0.03 | ) | ||||||||||||
| Net realized and unrealized gain (loss) on investments |
1.87 | 2.64 | (4.25 | ) | (0.28 | ) | 1.24 | |||||||||||||
| Total from investment operations |
$1.88 | $2.68 | $(4.25 | ) | $(0.31 | ) | $1.21 | |||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.07 | ) | $(0.12 | ) | $(0.07 | ) | $(0.12 | ) | $(0.03 | ) | ||||||||||
| From net realized gain on investments |
— | — | (0.09 | ) | (0.49 | ) | (0.05 | ) | ||||||||||||
| Total distributions declared to shareholders |
$(0.07 | ) | $(0.12 | ) | $(0.16 | ) | $(0.61 | ) | $(0.08 | ) | ||||||||||
| Net asset value, end of period |
$11.25 | $9.44 | $6.88 | $11.29 | $12.21 | |||||||||||||||
| Total return (%) (r)(s)(t) |
20.00 | 39.00 | (37.50 | ) | (2.72 | ) | 11.00 | |||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 1.34 | 1.46 | 1.66 | 1.95 | 3.57 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
1.03 | 1.10 | 1.10 | 1.10 | 1.10 | |||||||||||||||
| Net investment income (loss) |
0.11 | 0.49 | (0.05 | ) | (0.26 | ) | (0.27 | ) | ||||||||||||
| Portfolio turnover |
14 | 8 | 33 | 11 | 11 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$2,244 | $1,630 | $1,072 | $1,639 | $1,124 | |||||||||||||||
See Notes to Financial Statements
48
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2040 FUND – continued
| Years ended 4/30 | ||||||||||||||||||||
| Class C | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$9.38 | $6.85 | $11.26 | $12.23 | $11.08 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) | $0.01 | $0.05 | $(0.00 | )(w) | $0.01 | $(0.03 | ) | |||||||||||||
| Net realized and unrealized gain (loss) on investments |
1.85 | 2.61 | (4.23 | ) | (0.31 | ) | 1.25 | |||||||||||||
| Total from investment operations |
$1.86 | $2.66 | $(4.23 | ) | $(0.30 | ) | $1.22 | |||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.08 | ) | $(0.13 | ) | $(0.09 | ) | $(0.18 | ) | $(0.02 | ) | ||||||||||
| From net realized gain on investments |
— | — | (0.09 | ) | (0.49 | ) | (0.05 | ) | ||||||||||||
| Total distributions declared to shareholders |
$(0.08 | ) | $(0.13 | ) | $(0.18 | ) | $(0.67 | ) | $(0.07 | ) | ||||||||||
| Net asset value, end of period |
$11.16 | $9.38 | $6.85 | $11.26 | $12.23 | |||||||||||||||
| Total return (%) (r)(s)(t) |
19.93 | 38.97 | (37.46 | ) | (2.69 | ) | 11.05 | |||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 1.34 | 1.44 | 1.68 | 1.86 | 3.57 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
1.03 | 1.10 | 1.10 | 1.10 | 1.10 | |||||||||||||||
| Net investment income (loss) |
0.12 | 0.53 | (0.01 | ) | 0.06 | (0.31 | ) | |||||||||||||
| Portfolio turnover |
14 | 8 | 33 | 11 | 11 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$3,597 | $2,134 | $859 | $964 | $212 | |||||||||||||||
| Years ended 4/30 | ||||||||||||||||||||
| Class I | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$9.53 | $6.93 | $11.42 | $12.32 | $11.12 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (d) | $0.11 | $0.13 | $0.08 | $0.09 | $0.08 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments |
1.89 | 2.66 | (4.31 | ) | (0.28 | ) | 1.27 | |||||||||||||
| Total from investment operations |
$2.00 | $2.79 | $(4.23 | ) | $(0.19 | ) | $1.35 | |||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.16 | ) | $(0.19 | ) | $(0.17 | ) | $(0.22 | ) | $(0.10 | ) | ||||||||||
| From net realized gain on investments |
— | — | (0.09 | ) | (0.49 | ) | (0.05 | ) | ||||||||||||
| Total distributions declared to shareholders |
$(0.16 | ) | $(0.19 | ) | $(0.26 | ) | $(0.71 | ) | $(0.15 | ) | ||||||||||
| Net asset value, end of period |
$11.37 | $9.53 | $6.93 | $11.42 | $12.32 | |||||||||||||||
| Total return (%) (r)(s) |
21.16 | 40.38 | (36.88 | ) | (1.75 | ) | 12.26 | |||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 0.34 | 0.46 | 0.67 | 0.95 | 2.59 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
0.03 | 0.10 | 0.10 | 0.10 | 0.10 | |||||||||||||||
| Net investment income |
1.11 | 1.47 | 0.97 | 0.76 | 0.71 | |||||||||||||||
| Portfolio turnover |
14 | 8 | 33 | 11 | 11 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$2,972 | $2,094 | $1,225 | $1,518 | $1,004 | |||||||||||||||
See Notes to Financial Statements
49
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2040 FUND – continued
| Years ended 4/30 | ||||||||||||||||||||
| Class R1 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$9.39 | $6.84 | $11.26 | $12.20 | $11.08 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) | $0.01 | $0.04 | $(0.00 | )(w) | $(0.04 | ) | $(0.05 | ) | ||||||||||||
| Net realized and unrealized gain (loss) on investments |
1.85 | 2.63 | (4.24 | ) | (0.27 | ) | 1.26 | |||||||||||||
| Total from investment operations |
$1.86 | $2.67 | $(4.24 | ) | $(0.31 | ) | $1.21 | |||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.07 | ) | $(0.12 | ) | $(0.09 | ) | $(0.14 | ) | $(0.04 | ) | ||||||||||
| From net realized gain on investments |
— | — | (0.09 | ) | (0.49 | ) | (0.05 | ) | ||||||||||||
| Total distributions declared to shareholders |
$(0.07 | ) | $(0.12 | ) | $(0.18 | ) | $(0.63 | ) | $(0.09 | ) | ||||||||||
| Net asset value, end of period |
$11.18 | $9.39 | $6.84 | $11.26 | $12.20 | |||||||||||||||
| Total return (%) (r)(s) |
19.90 | 39.08 | (37.53 | ) | (2.75 | ) | 11.00 | |||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 1.34 | 1.46 | 1.67 | 1.97 | 3.55 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
1.03 | 1.10 | 1.10 | 1.17 | 1.20 | |||||||||||||||
| Net investment income (loss) |
0.09 | 0.48 | (0.01 | ) | (0.36 | ) | (0.42 | ) | ||||||||||||
| Portfolio turnover |
14 | 8 | 33 | 11 | 11 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$5,204 | $3,759 | $2,368 | $2,645 | $752 | |||||||||||||||
| Years ended 4/30 | ||||||||||||||||||||
| Class R2 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$9.43 | $6.87 | $11.32 | $12.24 | $11.10 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (d) | $0.06 | $0.09 | $0.05 | $0.02 | $0.00(w | ) | ||||||||||||||
| Net realized and unrealized gain (loss) on investments |
1.87 | 2.63 | (4.27 | ) | (0.28 | ) | 1.26 | |||||||||||||
| Total from investment operations |
$1.93 | $2.72 | $(4.22 | ) | $(0.26 | ) | $1.26 | |||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.12 | ) | $(0.16 | ) | $(0.14 | ) | $(0.17 | ) | $(0.07 | ) | ||||||||||
| From net realized gain on investments |
— | — | (0.09 | ) | (0.49 | ) | (0.05 | ) | ||||||||||||
| Total distributions declared to shareholders |
$(0.12 | ) | $(0.16 | ) | $(0.23 | ) | $(0.66 | ) | $(0.12 | ) | ||||||||||
| Net asset value, end of period |
$11.24 | $9.43 | $6.87 | $11.32 | $12.24 | |||||||||||||||
| Total return (%) (r)(s) |
20.58 | 39.67 | (37.14 | ) | (2.36 | ) | 11.43 | |||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 0.84 | 0.95 | 1.18 | 1.51 | 3.06 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
0.53 | 0.60 | 0.60 | 0.68 | 0.75 | |||||||||||||||
| Net investment income |
0.63 | 1.05 | 0.57 | 0.16 | 0.03 | |||||||||||||||
| Portfolio turnover |
14 | 8 | 33 | 11 | 11 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$38,606 | $27,881 | $14,024 | $11,566 | $3,702 | |||||||||||||||
See Notes to Financial Statements
50
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2040 FUND – continued
| Years ended 4/30 | ||||||||||||||||||||
| Class R3 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$9.49 | $6.90 | $11.36 | $12.27 | $11.11 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (d) | $0.08 | $0.11 | $0.06 | $0.05 | $0.05 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments |
1.88 | 2.65 | (4.28 | ) | (0.28 | ) | 1.25 | |||||||||||||
| Total from investment operations |
$1.96 | $2.76 | $(4.22 | ) | $(0.23 | ) | $1.30 | |||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.14 | ) | $(0.17 | ) | $(0.15 | ) | $(0.19 | ) | $(0.09 | ) | ||||||||||
| From net realized gain on investments |
— | — | (0.09 | ) | (0.49 | ) | (0.05 | ) | ||||||||||||
| Total distributions declared to shareholders |
$(0.14 | ) | $(0.17 | ) | $(0.24 | ) | $(0.68 | ) | $(0.14 | ) | ||||||||||
| Net asset value, end of period |
$11.31 | $9.49 | $6.90 | $11.36 | $12.27 | |||||||||||||||
| Total return (%) (r)(s) |
20.78 | 40.13 | (37.01 | ) | (2.13 | ) | 11.74 | |||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 0.59 | 0.72 | 0.91 | 1.28 | 2.78 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
0.28 | 0.35 | 0.35 | 0.45 | 0.50 | |||||||||||||||
| Net investment income |
0.86 | 1.27 | 0.72 | 0.40 | 0.39 | |||||||||||||||
| Portfolio turnover |
14 | 8 | 33 | 11 | 11 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$7,752 | $5,283 | $3,507 | $5,358 | $2,371 | |||||||||||||||
| Years ended 4/30 | ||||||||||||||||||||
| Class R4 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
| Net asset value, beginning of period |
$9.53 | $6.93 | $11.41 | $12.31 | $11.12 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (d) | $0.11 | $0.13 | $0.04 | $0.10 | $0.07 | |||||||||||||||
| Net realized and unrealized gain (loss) on investments |
1.88 | 2.66 | (4.26 | ) | (0.29 | ) | 1.26 | |||||||||||||
| Total from investment operations |
$1.99 | $2.79 | $(4.22 | ) | $(0.19 | ) | $1.33 | |||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income | $(0.16 | ) | $(0.19 | ) | $(0.17 | ) | $(0.22 | ) | $(0.09 | ) | ||||||||||
| From net realized gain on investments |
— | — | (0.09 | ) | (0.49 | ) | (0.05 | ) | ||||||||||||
| Total distributions declared to shareholders |
$(0.16 | ) | $(0.19 | ) | $(0.26 | ) | $(0.71 | ) | $(0.14 | ) | ||||||||||
| Net asset value, end of period |
$11.36 | $9.53 | $6.93 | $11.41 | $12.31 | |||||||||||||||
| Total return (%) (r)(s) |
21.05 | 40.38 | (36.82 | ) | (1.79 | ) | 12.07 | |||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f)(h) | 0.35 | 0.46 | 0.58 | 1.06 | 2.78 | |||||||||||||||
| Expenses after expense reductions (f)(h) |
0.03 | 0.10 | 0.10 | 0.15 | 0.20 | |||||||||||||||
| Net investment income |
1.11 | 1.51 | 0.35 | 0.87 | 0.60 | |||||||||||||||
| Portfolio turnover |
14 | 8 | 33 | 11 | 11 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$499 | $234 | $131 | $1,455 | $63 | |||||||||||||||
| (d) | Per share data is based on average shares outstanding. |
| (f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
| (h) | In addition to the fees and expenses which the fund bears directly, the fund indirectly bears a pro rata share of the fees and expenses of the underlying funds in which the fund invests. Accordingly, the expense ratio for the fund reflects only those fees and expenses borne directly by the fund. Because the underlying funds have varied expense and fee levels and the fund may own different proportions of the underlying funds at different times, the amount of fees and expenses incurred indirectly by the fund will vary. |
| (r) | Certain expenses have been reduced without which performance would have been lower. |
| (s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
| (t) | Total returns do not include any applicable sales charges. |
| (w) | Per share amount was less than $0.01. |
See Notes to Financial Statements
51
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2050 FUND
The financial highlights table is intended to help you understand the fund financial performance for the past 5 years (or life of a particular share class, if shorter). Certain information reflects financial results for a single fund share. The total returns in the table represent the rate by which an investor would have earned (or lost) on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
| Class A | Period ended 4/30/11 (c) |
|||
| Net asset value, beginning of period |
$10.00 | |||
| Income (loss) from investment operations | ||||
| Net investment income (d) | $0.11 | |||
| Net realized and unrealized gain (loss) on investments |
2.10 | |||
| Total from investment operations |
$2.21 | |||
| Less distributions declared to shareholders | ||||
| From net investment income |
$(0.13 | ) | ||
| Net asset value, end of period |
$12.08 | |||
| Total return (%) (r)(s)(t) |
22.20 | (n) | ||
| Ratios (%) (to average net assets) and Supplemental data: | ||||
| Expenses before expense reductions (f)(h) | 4.60 | (a) | ||
| Expenses after expense reductions (f)(h) |
0.25 | (a) | ||
| Net investment income |
1.60 | (a) | ||
| Portfolio turnover |
4 | |||
| Net assets at end of period (000 omitted) |
$1,836 | |||
| Class B | Period ended 4/30/11 (c) |
|||
| Net asset value, beginning of period |
$10.00 | |||
| Income (loss) from investment operations | ||||
| Net investment income (d) | $0.03 | |||
| Net realized and unrealized gain (loss) on investments |
2.13 | |||
| Total from investment operations |
$2.16 | |||
| Less distributions declared to shareholders | ||||
| From net investment income |
$(0.10 | ) | ||
| Net asset value, end of period |
$12.06 | |||
| Total return (%) (r)(s)(t) |
21.70 | (n) | ||
| Ratios (%) (to average net assets) and Supplemental data: | ||||
| Expenses before expense reductions (f)(h) | 6.81 | (a) | ||
| Expenses after expense reductions (f)(h) |
1.00 | (a) | ||
| Net investment income |
0.46 | (a) | ||
| Portfolio turnover |
4 | |||
| Net assets at end of period (000 omitted) |
$172 | |||
See Notes to Financial Statements
52
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2050 FUND – continued
| Class C | Period ended 4/30/11 (c) |
|||
| Net asset value, beginning of period |
$10.00 | |||
| Income (loss) from investment operations | ||||
| Net investment income (d) | $0.04 | |||
| Net realized and unrealized gain (loss) on investments |
2.12 | |||
| Total from investment operations |
$2.16 | |||
| Less distributions declared to shareholders | ||||
| From net investment income |
$(0.10 | ) | ||
| Net asset value, end of period |
$12.06 | |||
| Total return (%) (r)(s)(t) |
21.70 | (n) | ||
| Ratios (%) (to average net assets) and Supplemental data: | ||||
| Expenses before expense reductions (f)(h) | 6.87 | (a) | ||
| Expenses after expense reductions (f)(h) |
1.00 | (a) | ||
| Net investment income |
0.52 | (a) | ||
| Portfolio turnover |
4 | |||
| Net assets at end of period (000 omitted) |
$167 | |||
| Class I | Period ended 4/30/11 (c) |
|||
| Net asset value, beginning of period |
$10.00 | |||
| Income (loss) from investment operations | ||||
| Net investment income (d) | $0.11 | |||
| Net realized and unrealized gain (loss) on investments |
2.12 | |||
| Total from investment operations |
$2.23 | |||
| Less distributions declared to shareholders | ||||
| From net investment income |
$(0.13 | ) | ||
| Net asset value, end of period |
$12.10 | |||
| Total return (%) (r)(s) |
22.45 | (n) | ||
| Ratios (%) (to average net assets) and Supplemental data: | ||||
| Expenses before expense reductions (f)(h) | 5.79 | (a) | ||
| Expenses after expense reductions (f)(h) |
0.00 | (a) | ||
| Net investment income |
1.55 | (a) | ||
| Portfolio turnover |
4 | |||
| Net assets at end of period (000 omitted) |
$155 | |||
See Notes to Financial Statements
53
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2050 FUND – continued
| Class R1 | Period ended 4/30/11 (c) |
|||
| Net asset value, beginning of period |
$10.00 | |||
| Income (loss) from investment operations | ||||
| Net investment income (d) | $0.04 | |||
| Net realized and unrealized gain (loss) on investments |
2.12 | |||
| Total from investment operations |
$2.16 | |||
| Less distributions declared to shareholders | ||||
| From net investment income |
$(0.10 | ) | ||
| Net asset value, end of period |
$12.06 | |||
| Total return (%) (r)(s) |
21.70 | (n) | ||
| Ratios (%) (to average net assets) and Supplemental data: | ||||
| Expenses before expense reductions (f)(h) | 7.00 | (a) | ||
| Expenses after expense reductions (f)(h) |
1.00 | (a) | ||
| Net investment income |
0.58 | (a) | ||
| Portfolio turnover |
4 | |||
| Net assets at end of period (000 omitted) |
$122 | |||
| Class R2 | Period ended 4/30/11 (c) |
|||
| Net asset value, beginning of period |
$10.00 | |||
| Income (loss) from investment operations | ||||
| Net investment income (d) | $0.07 | |||
| Net realized and unrealized gain (loss) on investments |
2.13 | |||
| Total from investment operations |
$2.20 | |||
| Less distributions declared to shareholders | ||||
| From net investment income |
$(0.12 | ) | ||
| Net asset value, end of period |
$12.08 | |||
| Total return (%) (r)(s) |
22.07 | (n) | ||
| Ratios (%) (to average net assets) and Supplemental data: | ||||
| Expenses before expense reductions (f)(h) | 6.50 | (a) | ||
| Expenses after expense reductions (f)(h) |
0.50 | (a) | ||
| Net investment income |
1.08 | (a) | ||
| Portfolio turnover |
4 | |||
| Net assets at end of period (000 omitted) |
$122 | |||
See Notes to Financial Statements
54
Table of Contents
Financial Highlights – continued
MFS LIFETIME 2050 FUND – continued
| Class R3 | Period ended 4/30/11 (c) |
|||
| Net asset value, beginning of period |
$10.00 | |||
| Income (loss) from investment operations | ||||
| Net investment income (d) | $0.09 | |||
| Net realized and unrealized gain (loss) on investments |
2.12 | |||
| Total from investment operations |
$2.21 | |||
| Less distributions declared to shareholders | ||||
| From net investment income |
$(0.12 | ) | ||
| Net asset value, end of period |
$12.09 | |||
| Total return (%) (r)(s) |
22.26 | (n) | ||
| Ratios (%) (to average net assets) and Supplemental data: | ||||
| Expenses before expense reductions (f)(h) | 6.17 | (a) | ||
| Expenses after expense reductions (f)(h) |
0.25 | (a) | ||
| Net investment income |
1.28 | (a) | ||
| Portfolio turnover |
4 | |||
| Net assets at end of period (000 omitted) |
$144 | |||
| Class R4 | Period ended 4/30/11 (c) |
|||
| Net asset value, beginning of period |
$10.00 | |||
| Income (loss) from investment operations | ||||
| Net investment income (d) | $0.11 | |||
| Net realized and unrealized gain (loss) on investments |
2.12 | |||
| Total from investment operations |
$2.23 | |||
| Less distributions declared to shareholders | ||||
| From net investment income |
$(0.13 | ) | ||
| Net asset value, end of period |
$12.10 | |||
| Total return (%) (r)(s) |
22.45 | (n) | ||
| Ratios (%) (to average net assets) and Supplemental data: | ||||
| Expenses before expense reductions (f)(h) | 6.00 | (a) | ||
| Expenses after expense reductions (f)(h) |
0.00 | (a) | ||
| Net investment income |
1.58 | (a) | ||
| Portfolio turnover |
4 | |||
| Net assets at end of period (000 omitted) |
$122 | |||
| (a) | Annualized. |
| (c) | For the period from the commencement of the fund’s investment operations, September 15, 2010, through the stated period end. |
| (d) | Per share data is based on average shares outstanding. |
| (f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
| (h) | In addition to the fees and expenses which the fund bears directly, the fund indirectly bears a pro rata share of the fees and expenses of the underlying funds in which the fund invests. Accordingly, the expense ratio for the fund reflects only those fees and expenses borne directly by the fund. Because the underlying funds have varied expense and fee levels and the fund may own different proportions of the underlying funds at different times, the amount of fees and expenses incurred indirectly by the fund will vary. |
| (n) | Not annualized. |
| (r) | Certain expenses have been reduced without which performance would have been lower. |
| (s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
| (t) | Total returns do not include any applicable sales charges. |
See Notes to Financial Statements
55
Table of Contents
| (1) | Business and Organization |
MFS Lifetime Retirement Income Fund, MFS Lifetime 2010 Fund, MFS Lifetime 2020 Fund, MFS Lifetime 2030 Fund, MFS Lifetime 2040 Fund, and MFS Lifetime 2050 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. In the preparation of these financial statements, management has evaluated subsequent events occurring after the date of each fund’s Statement of Assets and Liabilities through the date that the financial statements were issued.
Each fund is a “fund of funds”, which invests the majority of its assets in other MFS 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. Certain underlying funds invest their portfolio in high-yield securities rated below investment grade. Investments in high-yield securities involve greater degrees of credit and market risk than investments in higher-rated securities and tend to be more sensitive to economic conditions. Certain underlying funds invest a significant portion of their assets in asset-backed and/or mortgage-backed securities. The value of these securities may depend, in part, on the issuer’s or borrower’s credit quality or ability to pay principal and interest when due and may fall if an issuer or borrower defaults on its obligation to pay principal or interest or if the instrument’s credit rating is downgraded by a credit rating agency. U.S. Government securities not supported as to the payment of principal or interest by the U.S. Treasury, such as those issued by Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, are subject to greater credit risk than are U.S. Government securities supported by the U.S. Treasury, such as those issued by Ginnie Mae. Certain underlying funds invest in commodity-linked structured notes as part of their principal investment strategy. These structured notes are subject to prepayment, basis and counterparty risks. Certain underlying funds invest in foreign securities, including securities of emerging market issuers. Investments in foreign securities are vulnerable to the effects of changes in the relative values of the local currency and the U.S. dollar and to the effects of changes in each country’s legal, political, and economic environment. The markets of emerging markets countries are generally more volatile than the markets of developed countries with more mature economies. All of the risks of investing in foreign securities previously described are heightened when investing in emerging markets countries.
The accounting policies of the underlying fund of the fund of funds are outlined in the underlying funds’ shareholder reports, available without charge by calling 1-800-225-2606, at mfs.com and on the Securities and Exchange Commission (SEC) web site at http://www.sec.gov or at the SEC’s public reference room in Washington, D.C. The underlying funds’ shareholder reports are not covered by this report.
Investment Valuations – Open-end investment companies (underlying funds) are generally valued at their net asset value per share. The investments of underlying funds managed by the adviser are valued as described below. For purposes of this policy disclosure, “fund” refers to the underlying fund in which each fund of fund invests.
Equity securities, including restricted equity securities, are generally valued at the last sale or official closing price as provided by a third-party pricing service on the market or exchange on which they are primarily traded. Equity securities, for which there were no sales reported that day, are generally valued at the last quoted daily bid quotation as provided by a third-party pricing service on the market or exchange on which such securities are primarily traded. Equity securities held short, for which there were no sales reported for that day, are generally valued at the last quoted daily ask quotation as provided by a third-party pricing service on the market or exchange on which such securities are primarily traded. Debt instruments and floating rate loans (other than short-term instruments), including restricted debt instruments, are generally valued at an evaluated or composite bid as provided by a third-party pricing service. Short-term instruments with a maturity at issuance of 60 days or less generally are valued at amortized cost, which approximates market value. Exchange-traded options are generally valued at the last sale or official closing price as provided by a third-party pricing service on the exchange on which such options are primarily traded. Exchange-traded options for which there were no sales reported that day are generally valued at the last daily bid quotation as provided by a third-party pricing service on the exchange on which such options are primarily traded. Options not traded on an exchange are generally valued at a broker/dealer bid quotation. Foreign currency options are generally valued at valuations provided by a third-party pricing service. Futures contracts are generally valued at last posted settlement price as provided by a third-party pricing service on the market on which they are primarily traded. Futures contracts for which there were no trades that day for a particular position are generally valued at the closing bid quotation as provided by a third-party
56
Table of Contents
Notes to Financial Statements – continued
pricing service on the market on which such futures contracts are primarily traded. Forward foreign currency exchange contracts are generally valued at the mean of bid and asked prices for the time period interpolated from rates provided by a third-party pricing service for proximate time periods. Swaps are generally valued at valuations provided by a third-party pricing service. Open-end investment companies are generally valued at net asset value per share. Securities and other assets, including commodity-linked structured notes, generally valued on the basis of information from a third-party pricing service may also be valued at a broker/dealer bid quotation. Values obtained from third-party pricing services can utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics, and other market data. The values of foreign securities and other assets and liabilities expressed in foreign currencies are converted to U.S. dollars using the mean of bid and asked prices for rates provided by a third-party pricing service.
The Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of each fund’s investments (including any fair valuation) to the adviser pursuant to valuation policies and procedures approved by the Board. If the adviser determines that reliable market quotations are not readily available, investments are valued at fair value as determined in good faith by the adviser in accordance with such procedures under the oversight of the Board of Trustees. Under each fund’s valuation policies and procedures, market quotations are not considered to be readily available for most types of debt instruments and floating rate loans and many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services. In addition, investments may be valued at fair value if the adviser determines that an investment’s value has been materially effected 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 each 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 each fund’s net asset value may be deemed to have a material effect on the value of securities traded in foreign markets. Accordingly, each fund’s foreign equity securities may often be valued at fair value. The adviser generally relies on third-party pricing services or other information (such as the correlation with price movements of similar securities in the same or other markets; the type, cost and investment characteristics of the security; the business and financial condition of the issuer; and trading and other market data) to assist in determining whether to fair value and at what value to fair value an investment. The value of an investment for purposes of calculating each fund’s net asset value can differ depending on the source and method used to determine value. When fair valuation is used, the value of an investment used to determine each fund’s net asset value may differ from quoted or published prices for the same investment. There can be no assurance that each fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which each fund determines its net asset value per share.
Various inputs are used in determining the value of each fund’s assets or liabilities. These inputs are categorized into three broad levels. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Each fund’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes unobservable inputs, which may include the adviser’s own assumptions in determining the fair value of investments. The following is a summary of the levels used as of April 30, 2011 in valuing each fund’s assets or liabilities:
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| MFS Lifetime Retirement Income Fund |
||||||||||||||||
| Investments at Value | ||||||||||||||||
| Mutual Funds | $101,697,138 | $— | $— | $101,697,138 | ||||||||||||
| MFS Lifetime 2010 Fund |
||||||||||||||||
| Investments at Value | ||||||||||||||||
| Mutual Funds | $57,149,701 | $— | $— | $57,149,701 | ||||||||||||
| MFS Lifetime 2020 Fund |
||||||||||||||||
| Investments at Value | ||||||||||||||||
| Mutual Funds | $135,575,993 | $— | $— | $135,575,993 | ||||||||||||
| MFS Lifetime 2030 Fund |
||||||||||||||||
| Investments at Value | ||||||||||||||||
| Mutual Funds | $101,978,774 | $— | $— | $101,978,774 | ||||||||||||
57
Table of Contents
Notes to Financial Statements – continued
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| MFS Lifetime 2040 Fund |
||||||||||||||||
| Investments at Value | ||||||||||||||||
| Mutual Funds | $71,148,433 | $— | $— | $71,148,433 | ||||||||||||
| MFS Lifetime 2050 Fund |
||||||||||||||||
| Investments at Value | ||||||||||||||||
| Mutual Funds | $2,867,357 | $— | $— | $2,867,357 | ||||||||||||
For further information regarding security characteristics, see the Portfolio of Investments.
Repurchase Agreements – Each fund entered into repurchase agreements with approved counterparties. Each repurchase agreement is recorded at cost. Each fund requires that the securities collateral in a repurchase transaction be transferred to a custodian. Each fund monitors, on a daily basis, the value of the collateral to ensure that its value, including accrued interest, is greater than amounts owed to the fund under each such repurchase agreement. Each fund and other funds managed by MFS may utilize a joint trading account for the purpose of entering into one or more repurchase agreements.
Derivatives – Each fund does not invest in derivatives directly. Each fund does invest in underlying funds that may use derivatives for different purposes, including to earn income and enhance returns, to increase or decrease exposure to a particular market, to manage or adjust the risk profile of the underlying funds, or as alternatives to direct investments. Derivatives may be used for hedging or non-hedging purposes. While hedging can reduce or eliminate losses, it can also reduce or eliminate gains. When the underlying funds use derivatives as an investment to increase market exposure, or for hedging purposes, gains and losses from derivative instruments may be substantially greater than the derivative’s original cost.
Indemnifications – Under each fund’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to each fund. Additionally, in the normal course of business, each fund enters into agreements with service providers that may contain indemnification clauses. Each fund’s maximum exposure under these agreements is unknown as this would involve future claims that may be made against the fund that have not yet occurred.
Investment Transactions and Income – Investment transactions are recorded on the trade date. Interest income is recorded on an accrual basis. All premium and discount is amortized or accreted for financial statement purposes in accordance with U.S. generally accepted accounting principles. Distributions of income and capital gains from the underlying funds are recorded on the ex-dividend date. Recognition of net investment income by each fund is affected by the timing of the declaration of dividends by the underlying funds in which each fund invests. In determining the net gain or loss on securities sold, the cost of securities is determined on the identified cost basis.
Each fund may receive proceeds from litigation settlements. Any proceeds received from litigation involving portfolio holdings are reflected in the Statement of Operations in realized gain/loss if the security has been disposed of by each fund or in unrealized gain/loss if the security is still held by each fund. Any other proceeds from litigation not related to portfolio holdings are reflected as other income in the Statement of Operations.
Fees Paid Indirectly – Each fund’s custody fee may be reduced according to an arrangement that measures the value of cash deposited with the custodian by the fund. This amount, for the year ended April 30, 2011, is shown as a reduction of total expenses on the Statement of Operations. In the case of MFS Lifetime 2010 Fund, MFS Lifetime 2020 Fund, and the MFS Lifetime 2050 Fund, custody fees were not reduced.
Tax Matters and Distributions – Each fund intends to qualify as a regulated investment company, as defined under Subchapter M of the Internal Revenue Code, and to distribute all of its taxable income, including realized capital gains. As a result, no provision for federal income tax is required. Each fund’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. Foreign taxes, if any, have been accrued by each fund in the accompanying financial statements.
Distributions to shareholders are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. Certain capital accounts in the financial statements are periodically adjusted for permanent differences in order to reflect their tax character. These adjustments have no impact on net assets or net asset value per share. Temporary differences which arise from recognizing certain items of income, expense, gain or loss in different periods for financial statement and tax purposes will reverse at some time in the future. Distributions in excess of net investment income or net realized gains are temporary overdistributions for financial statement purposes resulting from differences in the recognition or classification of income or distributions for financial statement and tax purposes.
58
Table of Contents
Notes to Financial Statements – continued
Book/tax differences primarily relate to wash sale loss deferrals.
The tax character of distributions declared to shareholders for the last two fiscal years is as follows:
| Year ended 4/30/11 | MFS Lifetime Retirement Income Fund |
MFS Lifetime 2010 Fund |
MFS Lifetime 2020 Fund |
MFS Lifetime 2030 Fund |
MFS Lifetime 2040 Fund |
MFS Lifetime 2050 Fund |
||||||||||||||||||
| Ordinary income (including any short-term capital gains) |
$1,950,527 | $1,287,003 | $2,275,051 | $1,185,021 | $715,994 | $25,000 | ||||||||||||||||||
| Long-term capital gain | — | — | — | — | — | — | ||||||||||||||||||
| Total distributions | $1,950,527 | $1,287,003 | $2,275,051 | $1,185,021 | $715,994 | $25,000 | ||||||||||||||||||
| Year ended 4/30/10 | MFS Lifetime Retirement Income Fund |
MFS Lifetime 2010 Fund |
MFS Lifetime 2020 Fund |
MFS Lifetime 2030 Fund |
MFS Lifetime 2040 Fund |
|||||||||||||||||||
| Ordinary income (including any short-term capital gains) |
$1,165,720 | $1,180,001 | $2,090,006 | $1,106,052 | $760,037 | |||||||||||||||||||
| Long-term capital gain | 6,219 | — | — | — | — | |||||||||||||||||||
| Total distributions | $1,171,939 | $1,180,001 | $2,090,006 | $1,106,052 | $760,037 | |||||||||||||||||||
The federal tax cost and the tax basis components of distributable earnings were as follows:
| As of 4/30/11 | MFS Lifetime Retirement Income Fund |
MFS Lifetime 2010 Fund |
MFS Lifetime 2020 Fund |
MFS Lifetime 2030 Fund |
MFS Lifetime 2040 Fund |
MFS Lifetime 2050 Fund |
||||||||||||||||||
| Cost of investments | $91,525,294 | $49,799,356 | $117,407,933 | $84,813,171 | $57,511,717 | $2,497,708 | ||||||||||||||||||
| Gross appreciation | $10,171,844 | $7,350,345 | $18,168,242 | $17,165,603 | $13,636,716 | $369,649 | ||||||||||||||||||
| Gross depreciation | — | — | (182 | ) | — | — | — | |||||||||||||||||
| Net unrealized appreciation (depreciation) | $10,171,844 | $7,350,345 | $18,168,060 | $17,165,603 | $13,636,716 | $369,649 | ||||||||||||||||||
| Undistributed ordinary income | 126,162 | 369,842 | 491,830 | 57,747 | — | 689 | ||||||||||||||||||
| Undistributed long-term capital gain | — | — | — | — | — | 4,653 | ||||||||||||||||||
| Capital loss carryforwards | (1,238,072 | ) | (1,954,451 | ) | (8,099,833 | ) | (7,109,364 | ) | (3,959,044 | ) | — | |||||||||||||
| Other temporary differences | (159,525 | ) | — | — | — | — | — | |||||||||||||||||
As of April 30, 2011, certain funds had capital loss carryforwards available to offset future realized gains. Such losses expire as follows:
| Expiration Date | MFS Lifetime Retirement Income Fund |
MFS Lifetime 2010 Fund |
MFS Lifetime 2020 Fund |
MFS Lifetime 2030 Fund |
MFS Lifetime 2040 Fund |
|||||||||||||||
| 4/30/18 | $(1,238,072 | ) | $(1,954,451 | ) | $(7,759,868 | ) | $(6,808,045 | ) | $(3,839,062 | ) | ||||||||||
| 4/30/19 | — | — | (339,965 | ) | (301,319 | ) | (119,982 | ) | ||||||||||||
| Total | $(1,238,072 | ) | $(1,954,451 | ) | $(8,099,833 | ) | $(7,109,364 | ) | $(3,959,044 | ) | ||||||||||
59
Table of Contents
Notes to Financial Statements – continued
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 Lifetime Retirement Income Fund, income and common expenses are allocated to shareholders based on the value of settled shares outstanding of each class. For the Lifetime Retirement Income Fund, realized and unrealized gain (loss) are allocated to shareholders based on the daily net assets of each class. For all other funds, income, realized and unrealized gain (loss), and common expenses are allocated to shareholders based on the daily net assets of each class. Dividends are declared separately for each class. Differences in per share dividend rates are generally due to differences in separate class expenses. Class B shares will convert to Class A shares approximately eight years after purchase. Each fund’s distributions declared to shareholders as reported on the Statement of Changes in Net Assets are presented by class as follows:
From net investment income
| MFS Lifetime Retirement |
MFS Lifetime |
MFS Lifetime | ||||||||||
| Year ended |
Year ended |
Year ended |
Year ended |
Year ended |
Year ended | |||||||
| Class A | $789,990 | $398,916 | $325,717 | $239,923 | $501,308 | $375,478 | ||||||
| Class B | 84,736 | 54,087 | 43,284 | 43,474 | 68,394 | 71,060 | ||||||
| Class C | 449,438 | 199,711 | 128,052 | 86,642 | 123,035 | 92,302 | ||||||
| Class I | 117,386 | 11,116 | 15,176 | 17,838 | 27,758 | 25,558 | ||||||
| Class R1 | 60,583 | 22,546 | 90,942 | 82,757 | 117,344 | 159,836 | ||||||
| Class R2 | 305,426 | 266,771 | 553,057 | 533,698 | 1,072,891 | 995,112 | ||||||
| Class R3 | 139,232 | 209,818 | 121,948 | 171,304 | 352,651 | 363,183 | ||||||
| Class R4 | 3,736 | 2,723 | 8,827 | 4,365 | 11,670 | 7,477 | ||||||
| Total | $1,950,527 | $1,165,688 | $1,287,003 | $1,180,001 | $2,275,051 | $2,090,006 | ||||||
| MFS Lifetime |
MFS Lifetime |
MFS Lifetime | ||||||||||
| Year ended 4/30/11 |
Year ended 4/30/10 |
Year ended |
Year ended |
Year ended |
Year ended | |||||||
| Class A | $192,630 | $139,857 | $112,906 | $108,920 | $16,770 | $— | ||||||
| Class B | 30,117 | 30,811 | 12,753 | 20,655 | 1,009 | — | ||||||
| Class C | 41,979 | 21,749 | 22,491 | 24,224 | 1,009 | — | ||||||
| Class I | 36,750 | 37,499 | 38,175 | 36,599 | 1,466 | — | ||||||
| Class R1 | 48,608 | 88,337 | 30,444 | 45,257 | 1,009 | — | ||||||
| Class R2 | 578,435 | 543,933 | 408,065 | 423,841 | 1,167 | — | ||||||
| Class R3 | 245,656 | 240,630 | 83,944 | 96,397 | 1,246 | — | ||||||
| Class R4 | 10,846 | 3,236 | 7,216 | 4,144 | 1,324 | — | ||||||
| Total | $1,185,021 | $1,106,052 | $715,994 | $760,037 | $25,000 | $— | ||||||
From net realized gain on investments
| MFS Lifetime Retirement |
||||||||||||
| Year ended |
Year ended |
|||||||||||
| Class A | $— | $2,034 | ||||||||||
| Class B | — | 327 | ||||||||||
| Class C | — | 1,365 | ||||||||||
| Class I | — | 38 | ||||||||||
| Class R1 | — | 125 | ||||||||||
| Class R2 | — | 1,346 | ||||||||||
| Class R3 | — | 1,006 | ||||||||||
| Class R4 | — | 10 | ||||||||||
| Total | $— | $6,251 | ||||||||||
| (c) | For the period from the commencement of the fund’s investment operations, September 15, 2010, through the stated period end. |
| (3) | Transactions with Affiliates |
Investment Adviser – Each fund has an investment advisory agreement with MFS to provide overall investment management and related administrative services and facilities to each fund. MFS receives no compensation under this agreement; however MFS receives management fees from the underlying MFS funds.
60
Table of Contents
Notes to Financial Statements – continued
The investment adviser had agreed in writing to pay a portion of each fund’s (excluding MFS Lifetime 2050 Fund) operating expenses, exclusive of distribution and service fees, interest, taxes, extraordinary expenses, brokerage and transaction costs and investment-related expenses, such that operating expenses did not exceed 0.10% annually of each fund’s average daily net assets. For the period May 1, 2010 through August 31, 2010, this reduction amounted to the following for each fund and is reflected as a reduction of total expenses in the Statement of Operations:
| MFS Lifetime Income Fund |
MFS Lifetime 2010 Fund |
MFS Lifetime 2020 Fund |
MFS Lifetime 2030 Fund |
MFS Lifetime 2040 Fund |
MFS Lifetime 2050 Fund |
|||||||||||||||
| $37,573 | $40,422 | $30,787 | $37,837 | $41,960 | $— | |||||||||||||||
Effective September 1, 2010, and in the case of the Lifetime 2050 Fund, the inception of the fund, MFS further agreed in writing to bear the fund’s expenses, excluding distribution and service fees, interest, taxes, extraordinary expenses, brokerage and transaction costs and investment-related expenses including fees and expenses associated with investments in investment companies and other similar investment vehicles, such that “Other Expenses” do not exceed 0.00% of the fund’s average daily net assets annually for each class of shares. This agreement will continue until at least August 31, 2011, after which MFS may increase such expense limitation to 0.10% of the fund’s average daily net assets annually for each class of shares without a vote of the fund’s Board of Trustees. Any increase above 0.10% would require a vote of the fund’s Board of Trustees. For the year ended April 30, 2011, this reduction amounted to the following for each fund and is reflected as a reduction of total expenses in the Statement of Operations:
| MFS Lifetime Income Fund |
MFS Lifetime 2010 Fund |
MFS Lifetime 2020 Fund |
MFS Lifetime 2030 Fund |
MFS Lifetime 2040 Fund |
MFS Lifetime 2050 Fund |
|||||||||||||||
| $ 146,297 | $135,083 | $155,292 | $147,369 | $136,863 | $62,368 | |||||||||||||||
In addition to the fees and expenses which each fund bears directly, each fund indirectly bears a pro rata share of the fees and expenses of the underlying funds in which a fund invests. Accordingly, the expense ratio for each fund reflects only those fees and expenses borne directly by each fund.
Distributor – MFS Fund Distributors, Inc. (MFD), a wholly-owned subsidiary of MFS, as distributor, received the following amounts for the year ended April 30, 2011, as its portion of the initial sales charge on sales of Class A shares of each fund:
| MFS Lifetime Income Fund |
MFS Lifetime 2010 Fund |
MFS Lifetime 2020 Fund |
MFS Lifetime 2030 Fund |
MFS Lifetime 2040 Fund |
MFS Lifetime 2050 Fund |
|||||||||||||||
| $86,566 | $18,036 | $26,611 | $17,312 | $9,403 | $303 | |||||||||||||||
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 each fund will pay MFD for services provided by MFD and financial intermediaries in connection with the distribution and servicing of certain share classes. One component of the plan is a distribution fee paid to MFD and another component of the plan is a service fee paid to MFD. MFD may subsequently pay all, or a portion, of the distribution and/or service fees to financial intermediaries.
Distribution Plan Fee Table:
| CLASS A | ||||||||||||||||||||
| Distribution Fee Rate (d) |
Service Fee Rate (d) |
Total Distribution Plan (d) |
Annual Effective Rate (e) |
Distribution and Service Fee |
||||||||||||||||
| MFS Lifetime Retirement Income Fund | — | 0.25% | 0.25% | 0.25% | $69,497 | |||||||||||||||
| MFS Lifetime 2010 Fund | — | 0.25% | 0.25% | 0.25% | 29,064 | |||||||||||||||
| MFS Lifetime 2020 Fund | — | 0.25% | 0.25% | 0.25% | 57,131 | |||||||||||||||
| MFS Lifetime 2030 Fund | — | 0.25% | 0.25% | 0.25% | 29,444 | |||||||||||||||
| MFS Lifetime 2040 Fund | — | 0.25% | 0.25% | 0.25% | 19,881 | |||||||||||||||
| MFS Lifetime 2050 Fund | — | 0.25% | 0.25% | 0.25% | 1,839 | |||||||||||||||
| CLASS B | ||||||||||||||||||||
| Distribution Fee Rate (d) |
Service Fee Rate (d) |
Total Distribution Plan (d) |
Annual Effective Rate (e) |
Distribution and Service Fee |
||||||||||||||||
| MFS Lifetime Retirement Income Fund | 0.75% | 0.25% | 1.00% | 1.00% | $40,701 | |||||||||||||||
| MFS Lifetime 2010 Fund | 0.75% | 0.25% | 1.00% | 1.00% | 22,539 | |||||||||||||||
| MFS Lifetime 2020 Fund | 0.75% | 0.25% | 1.00% | 1.00% | 46,445 | |||||||||||||||
| MFS Lifetime 2030 Fund | 0.75% | 0.25% | 1.00% | 1.00% | 31,908 | |||||||||||||||
| MFS Lifetime 2040 Fund | 0.75% | 0.25% | 1.00% | 1.00% | 17,223 | |||||||||||||||
| MFS Lifetime 2050 Fund | 0.75% | 0.25% | 1.00% | 1.00% | 776 | |||||||||||||||
61
Table of Contents
Notes to Financial Statements – continued
| CLASS C | ||||||||||||||||||||
| Distribution Fee Rate (d) |
Service Fee Rate (d) |
Total Distribution Plan (d) |
Annual Effective Rate (e) |
Distribution and Service Fee |
||||||||||||||||
| MFS Lifetime Retirement Income Fund | 0.75% | 0.25% | 1.00% | 1.00% | $217,684 | |||||||||||||||
| MFS Lifetime 2010 Fund | 0.75% | 0.25% | 1.00% | 1.00% | 54,728 | |||||||||||||||
| MFS Lifetime 2020 Fund | 0.75% | 0.25% | 1.00% | 1.00% | 74,589 | |||||||||||||||
| MFS Lifetime 2030 Fund | 0.75% | 0.25% | 1.00% | 1.00% | 36,385 | |||||||||||||||
| MFS Lifetime 2040 Fund | 0.75% | 0.25% | 1.00% | 1.00% | 26,113 | |||||||||||||||
| MFS Lifetime 2050 Fund | 0.75% | 0.25% | 1.00% | 1.00% | 734 | |||||||||||||||
| CLASS R1 | ||||||||||||||||||||
| Distribution Fee Rate (d) |
Service Fee Rate (d) |
Total Distribution Plan (d) |
Annual Effective Rate (e) |
Distribution and Service Fee |
||||||||||||||||
| MFS Lifetime Retirement Income Fund | 0.75% | 0.25% | 1.00% | 1.00% | $27,509 | |||||||||||||||
| MFS Lifetime 2010 Fund | 0.75% | 0.25% | 1.00% | 1.00% | 39,321 | |||||||||||||||
| MFS Lifetime 2020 Fund | 0.75% | 0.25% | 1.00% | 1.00% | 88,545 | |||||||||||||||
| MFS Lifetime 2030 Fund | 0.75% | 0.25% | 1.00% | 1.00% | 62,456 | |||||||||||||||
| MFS Lifetime 2040 Fund | 0.75% | 0.25% | 1.00% | 1.00% | 41,272 | |||||||||||||||
| MFS Lifetime 2050 Fund | 0.75% | 0.25% | 1.00% | 1.00% | 696 | |||||||||||||||
| CLASS R2 | ||||||||||||||||||||
| Distribution Fee Rate (d) |
Service Fee Rate (d) |
Total Distribution Plan (d) |
Annual Effective Rate (e) |
Distribution and Service Fee |
||||||||||||||||
| MFS Lifetime Retirement Income Fund | 0.25% | 0.25% | 0.50% | 0.50% | $59,784 | |||||||||||||||
| MFS Lifetime 2010 Fund | 0.25% | 0.25% | 0.50% | 0.50% | 112,505 | |||||||||||||||
| MFS Lifetime 2020 Fund | 0.25% | 0.25% | 0.50% | 0.50% | 271,058 | |||||||||||||||
| MFS Lifetime 2030 Fund | 0.25% | 0.25% | 0.50% | 0.50% | 204,109 | |||||||||||||||
| MFS Lifetime 2040 Fund | 0.25% | 0.25% | 0.50% | 0.50% | 161,041 | |||||||||||||||
| MFS Lifetime 2050 Fund | 0.25% | 0.25% | 0.50% | 0.50% | 348 | |||||||||||||||
| CLASS R3 | ||||||||||||||||||||
| Distribution Fee Rate (d) |
Service Fee Rate (d) |
Total Distribution Plan (d) |
Annual Effective Rate (e) |
Distribution and Service Fee |
||||||||||||||||
| MFS Lifetime Retirement Income Fund | — | 0.25% | 0.25% | 0.25% | $12,432 | |||||||||||||||
| MFS Lifetime 2010 Fund | — | 0.25% | 0.25% | 0.25% | 13,319 | |||||||||||||||
| MFS Lifetime 2020 Fund | — | 0.25% | 0.25% | 0.25% | 41,562 | |||||||||||||||
| MFS Lifetime 2030 Fund | — | 0.25% | 0.25% | 0.25% | 37,561 | |||||||||||||||
| MFS Lifetime 2040 Fund | — | 0.25% | 0.25% | 0.25% | 14,887 | |||||||||||||||
| MFS Lifetime 2050 Fund | — | 0.25% | 0.25% | 0.25% | 182 | |||||||||||||||
| MFS Lifetime Retirement Income Fund |
MFS Lifetime 2010 Fund |
MFS Lifetime 2020 Fund |
MFS Lifetime 2030 Fund |
MFS Lifetime 2040 Fund |
MFS Lifetime 2050 Fund |
|||||||||||||||||||
| Total Distribution and Service Fees | $427,607 | $271,476 | $579,330 | $401,863 | $280,417 | $4,575 | ||||||||||||||||||
| (d) | In accordance with the distribution plan for certain classes, each fund pays distribution and/or service fees equal to these annual percentage rates of each class’ average daily net assets. The distribution and service fee rates disclosed by class represent the current rates in effect at the end of the reporting period. Any rate changes, if applicable, are detailed below. |
| (e) | The annual effective rates represent actual fees incurred under the distribution plan for the year ended April 30, 2011 based on each class’ average daily net assets. |
Certain Class A shares are subject to a contingent deferred sales charge (CDSC) in the event of a shareholder redemption within 24 months of purchase. Class C shares are subject to a CDSC in the event of a shareholder redemption within 12 months of purchase. Class B shares are subject to a CDSC in the event of a shareholder redemption within six years of purchase. All contingent deferred sales charges are paid to MFD and during the year ended April 30, 2011, were as follows:
| CDSC Imposed | MFS Lifetime Retirement Income Fund |
MFS Lifetime 2010 Fund |
MFS Lifetime 2020 Fund |
MFS Lifetime 2030 Fund |
MFS Lifetime 2040 Fund |
MFS Lifetime 2050 Fund |
||||||||||||||||||
| Class A | $— | $40 | $17 | $— | $— | $— | ||||||||||||||||||
| Class B | 2,361 | 4,050 | 12,697 | 3,307 | 4,657 | — | ||||||||||||||||||
| Class C | 3,690 | 1,970 | 1,213 | 837 | 990 | — | ||||||||||||||||||
Shareholder Servicing Agent – MFS Service Center, Inc. (MFSC), a wholly-owned subsidiary of MFS, provides shareholder services and transfer agent services to the funds. Under a Special Servicing Agreement among MFS, each MFS fund which invests in other MFS funds (“MFS fund-of-funds”) and the underlying funds (other than the MFS Commodity Strategy Fund,
62
Table of Contents
Notes to Financial Statements – continued
MFS Global Bond Fund, and MFS Global Real Estate Fund) in which a MFS fund-of-funds invests (“underlying funds”), each underlying fund may pay a portion of each MFS fund-of-fund’s transfer agent-related expenses, including out-of-pocket and sub-accounting fees, to the extent such payments do not exceed the benefits realized or expected to be realized by the underlying fund from the investment in the underlying fund by the MFS fund-of-fund. For the year ended April 30, 2011, shareholder servicing expenses incurred by the funds, including out-of-pocket expenses, are disclosed on the Statement of Operations.
Administrator – MFS provides certain financial, legal, shareholder communications, compliance, and other administrative services to each fund. Under an administrative services agreement, each fund partially reimburses MFS the costs incurred to provide these services. Each fund pays an annual fixed amount of $17,500. The administrative services fee incurred for the year ended April 30, 2011 was equivalent to the following annual effective rates of each fund’s average daily net assets:
| MFS Lifetime Income Fund |
MFS Lifetime 2010 Fund |
MFS Lifetime 2020 Fund |
MFS Lifetime 2030 Fund |
MFS Lifetime 2040 Fund |
MFS Lifetime 2050 Fund |
|||||||||||||||
| 0.0227% | 0.0337% | 0.0150% | 0.0210% | 0.0305% | 0.8750% | |||||||||||||||
Trustees’ and Officers’ Compensation – Each fund pays compensation to independent Trustees in the form of a retainer, attendance fees, and additional compensation to Board and Committee chairpersons. Each fund does not pay compensation directly to Trustees or officers of each fund who are also officers of the investment adviser, all of whom receive remuneration for their services to each fund from MFS. Certain officers and Trustees of each fund are officers or directors of MFS, MFD, and MFSC.
Other – Each fund and certain other funds managed by MFS (the funds) have entered into services agreements (the Agreements) which provide for payment of fees by the funds to Tarantino LLC and Griffin Compliance LLC in return for the provision of services of an Independent Chief Compliance Officer (ICCO) and Assistant ICCO, respectively, for the funds. The ICCO and Assistant ICCO are officers of the funds and the sole members of Tarantino LLC and Griffin Compliance LLC, respectively. The funds can terminate the Agreements with Tarantino LLC and Griffin Compliance LLC at any time under the terms of the Agreements. For the year ended April 30, 2011, the aggregate fees paid by each fund to Tarantino LLC and Griffin Compliance LLC amounted to the following and are included in miscellaneous expense on the Statement of Operations:
| MFS Lifetime Income Fund |
MFS Lifetime 2010 Fund |
MFS Lifetime 2020 Fund |
MFS Lifetime 2030 Fund |
MFS Lifetime 2040 Fund |
MFS Lifetime 2050 Fund |
|||||||||||||||
| $676 | $478 | $1,059 | $751 | $515 | $11 | |||||||||||||||
MFS has agreed to reimburse each fund for a portion of the payments made by each fund 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 and Assistant ICCO.
| MFS Lifetime Income Fund |
MFS Lifetime 2010 Fund |
MFS Lifetime 2020 Fund |
MFS Lifetime 2030 Fund |
MFS Lifetime 2040 Fund |
MFS Lifetime 2050 Fund |
|||||||||||||||
| $ 343 | $237 | $530 | $377 | $258 | $5 | |||||||||||||||
Each fund invests in the MFS Institutional Money Market Portfolio which is managed by MFS and seeks a high level of current income consistent with preservation of capital and liquidity. Income earned on this investment is included in dividends from underlying affiliated funds on the Statement of Operations. This money market fund does not pay a management fee to MFS.
| (4) | Portfolio Securities |
Purchases and sales of shares of underlying funds aggregated to the following:
| MFS Lifetime Retirement Income Fund |
MFS Lifetime 2010 Fund |
MFS Lifetime 2020 Fund |
MFS Lifetime 2030 Fund |
MFS Lifetime 2040 Fund |
MFS Lifetime 2050 Fund |
|||||||||||||||||||
| Purchases | $52,934,734 | $19,012,400 | $33,969,210 | $23,937,804 | $17,352,065 | $2,537,704 | ||||||||||||||||||
| Sales | $15,695,383 | $14,935,428 | $22,025,379 | $12,320,141 | $8,245,692 | $87,165 | ||||||||||||||||||
63
Table of Contents
Notes to Financial Statements – continued
| (5) | Shares of Beneficial Interest |
Each fund’s Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest. Transactions in fund shares were as follows:
| MFS Lifetime Retirement Income Fund | MFS Lifetime 2010 Fund | |||||||||||||||||||||||||||||||
| Year ended 4/30/11 |
Year ended 4/30/10 |
Year ended 4/30/11 |
Year ended 4/30/10 |
|||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
| Shares sold | ||||||||||||||||||||||||||||||||
| Class A |
2,187,604 | $23,619,430 | 1,689,170 | $17,057,220 | 538,240 | $6,210,873 | 476,943 | $5,161,977 | ||||||||||||||||||||||||
| Class B |
292,004 | 3,144,665 | 223,386 | 2,263,230 | 125,716 | 1,444,836 | 61,451 | 658,881 | ||||||||||||||||||||||||
| Class C |
1,775,988 | 19,285,642 | 1,235,323 | 12,606,117 | 237,799 | 2,683,219 | 232,765 | 2,483,928 | ||||||||||||||||||||||||
| Class I |
606,934 | 6,523,638 | 37,792 | 391,953 | 13,116 | 153,060 | 16,601 | 175,953 | ||||||||||||||||||||||||
| Class R1 |
646,887 | 6,967,460 | 65,208 | 658,456 | 121,920 | 1,392,367 | 124,123 | 1,309,541 | ||||||||||||||||||||||||
| Class R2 |
498,548 | 5,389,913 | 514,130 | 5,158,275 | 874,450 | 10,086,946 | 849,555 | 9,120,371 | ||||||||||||||||||||||||
| Class R3 |
261,446 | 2,806,509 | 181,954 | 1,809,731 | 270,645 | 3,154,004 | 139,057 | 1,500,655 | ||||||||||||||||||||||||
| Class R4 |
2,244 | 24,764 | 4,929 | 51,221 | 24,312 | 269,748 | 5,688 | 61,487 | ||||||||||||||||||||||||
| 6,271,655 | $67,762,021 | 3,951,892 | $39,996,203 | 2,206,198 | $25,395,053 | 1,906,183 | $20,472,793 | |||||||||||||||||||||||||
| Shares issued to shareholders in reinvestment of distributions | ||||||||||||||||||||||||||||||||
| Class A |
55,683 | $605,147 | 32,097 | $326,187 | 26,356 | $303,880 | 21,149 | $229,677 | ||||||||||||||||||||||||
| Class B |
6,722 | 73,092 | 4,737 | 47,890 | 3,357 | 38,507 | 3,913 | 42,301 | ||||||||||||||||||||||||
| Class C |
34,599 | 376,420 | 15,856 | 161,698 | 8,146 | 92,543 | 5,097 | 54,689 | ||||||||||||||||||||||||
| Class I |
2,759 | 30,125 | 1,034 | 10,494 | 1,304 | 15,095 | 1,384 | 15,081 | ||||||||||||||||||||||||
| Class R1 |
5,535 | 60,504 | 2,219 | 22,376 | 7,998 | 90,942 | 7,713 | 82,757 | ||||||||||||||||||||||||
| Class R2 |
27,134 | 294,185 | 25,903 | 261,970 | 46,674 | 534,421 | 48,446 | 522,738 | ||||||||||||||||||||||||
| Class R3 |
12,829 | 139,029 | 20,897 | 210,498 | 10,567 | 121,948 | 15,774 | 171,302 | ||||||||||||||||||||||||
| Class R4 |
334 | 3,618 | 270 | 2,733 | 764 | 8,827 | 401 | 4,365 | ||||||||||||||||||||||||
| 145,595 | $1,582,120 | 103,013 | $1,043,846 | 105,166 | $1,206,163 | 103,877 | $1,122,910 | |||||||||||||||||||||||||
| Shares reacquired | ||||||||||||||||||||||||||||||||
| Class A |
(1,036,827 | ) | $(11,152,140 | ) | (263,841 | ) | $(2,698,072 | ) | (351,554 | ) | $(4,108,508 | ) | (293,583 | ) | $(3,173,760 | ) | ||||||||||||||||
| Class B |
(112,709 | ) | (1,198,427 | ) | (88,209 | ) | (891,461 | ) | (85,175 | ) | (973,866 | ) | (65,142 | ) | (693,356 | ) | ||||||||||||||||
| Class C |
(425,617 | ) | (4,593,409 | ) | (102,017 | ) | (1,039,992 | ) | (103,966 | ) | (1,196,554 | ) | (84,343 | ) | (890,419 | ) | ||||||||||||||||
| Class I |
(187,324 | ) | (2,060,155 | ) | (8,323 | ) | (87,835 | ) | (8,684 | ) | (103,875 | ) | (12,731 | ) | (141,505 | ) | ||||||||||||||||
| Class R1 |
(439,100 | ) | (4,763,007 | ) | (47,701 | ) | (485,842 | ) | (88,957 | ) | (1,014,131 | ) | (87,464 | ) | (914,633 | ) | ||||||||||||||||
| Class R2 |
(399,650 | ) | (4,374,145 | ) | (215,688 | ) | (2,168,275 | ) | (907,575 | ) | (10,454,985 | ) | (330,866 | ) | (3,539,448 | ) | ||||||||||||||||
| Class R3 |
(146,106 | ) | (1,584,522 | ) | (374,924 | ) | (3,889,320 | ) | (251,401 | ) | (2,900,868 | ) | (154,907 | ) | (1,699,052 | ) | ||||||||||||||||
| Class R4 |
(1,652 | ) | (18,339 | ) | (670 | ) | (7,019 | ) | (19,020 | ) | (216,942 | ) | (1,883 | ) | (20,655 | ) | ||||||||||||||||
| (2,748,985 | ) | $(29,744,144 | ) | (1,101,373 | ) | $(11,267,816 | ) | (1,816,332 | ) | $(20,969,729 | ) | (1,030,919 | ) | $(11,072,828 | ) | |||||||||||||||||
| Net change | ||||||||||||||||||||||||||||||||
| Class A |
1,206,460 | $13,072,437 | 1,457,426 | $14,685,335 | 213,042 | $2,406,245 | 204,509 | $2,217,894 | ||||||||||||||||||||||||
| Class B |
186,017 | 2,019,330 | 139,914 | 1,419,659 | 43,898 | 509,477 | 222 | 7,826 | ||||||||||||||||||||||||
| Class C |
1,384,970 | 15,068,653 | 1,149,162 | 11,727,823 | 141,979 | 1,579,208 | 153,519 | 1,648,198 | ||||||||||||||||||||||||
| Class I |
422,369 | 4,493,608 | 30,503 | 314,612 | 5,736 | 64,280 | 5,254 | 49,529 | ||||||||||||||||||||||||
| Class R1 |
213,322 | 2,264,957 | 19,726 | 194,990 | 40,961 | 469,178 | 44,372 | 477,665 | ||||||||||||||||||||||||
| Class R2 |
126,032 | 1,309,953 | 324,345 | 3,251,970 | 13,549 | 166,382 | 567,135 | 6,103,661 | ||||||||||||||||||||||||
| Class R3 |
128,169 | 1,361,016 | (172,073 | ) | (1,869,091 | ) | 29,811 | 375,084 | (76 | ) | (27,095 | ) | ||||||||||||||||||||
| Class R4 |
926 | 10,043 | 4,529 | 46,935 | 6,056 | 61,633 | 4,206 | 45,197 | ||||||||||||||||||||||||
| 3,668,265 | $39,599,997 | 2,953,532 | $29,772,233 | 495,032 | $5,631,487 | 979,141 | $10,522,875 | |||||||||||||||||||||||||
64
Table of Contents
Notes to Financial Statements – continued
| MFS Lifetime 2020 Fund | MFS Lifetime 2030 Fund | |||||||||||||||||||||||||||||||
| Year ended 4/30/11 |
Year ended 4/30/10 |
Year ended 4/30/11 |
Year ended 4/30/10 |
|||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
| Shares sold | ||||||||||||||||||||||||||||||||
| Class A |
733,304 | $7,814,563 | 861,465 | $8,234,992 | 535,419 | $5,430,900 | 439,289 | $3,901,930 | ||||||||||||||||||||||||
| Class B |
171,289 | 1,816,470 | 139,458 | 1,337,920 | 107,427 | 1,089,117 | 110,945 | 974,943 | ||||||||||||||||||||||||
| Class C |
386,320 | 4,056,135 | 266,577 | 2,556,288 | 301,713 | 3,024,785 | 168,692 | 1,509,461 | ||||||||||||||||||||||||
| Class I |
62,310 | 681,335 | 34,339 | 316,305 | 89,847 | 945,920 | 68,395 | 560,152 | ||||||||||||||||||||||||
| Class R1 |
201,556 | 2,103,755 | 276,600 | 2,546,846 | 162,274 | 1,608,500 | 314,974 | 2,671,305 | ||||||||||||||||||||||||
| Class R2 |
1,793,663 | 19,037,135 | 1,706,306 | 16,102,874 | 1,534,683 | 15,313,530 | 1,603,164 | 13,998,063 | ||||||||||||||||||||||||
| Class R3 |
489,088 | 5,287,131 | 360,982 | 3,425,712 | 436,518 | 4,391,873 | 414,727 | 3,617,825 | ||||||||||||||||||||||||
| Class R4 |
98,792 | 987,275 | 9,296 | 90,064 | 56,858 | 533,941 | 16,877 | 153,828 | ||||||||||||||||||||||||
| 3,936,322 | $41,783,799 | 3,655,023 | $34,611,001 | 3,224,739 | $32,338,566 | 3,137,063 | $27,387,507 | |||||||||||||||||||||||||
| Shares issued to shareholders in reinvestment of distributions | ||||||||||||||||||||||||||||||||
| Class A |
44,848 | $487,494 | 37,268 | $365,601 | 17,465 | $183,210 | 14,819 | $136,039 | ||||||||||||||||||||||||
| Class B |
5,869 | 63,440 | 7,042 | 68,803 | 2,767 | 28,807 | 3,318 | 30,291 | ||||||||||||||||||||||||
| Class C |
7,924 | 85,021 | 6,690 | 64,890 | 2,699 | 28,013 | 1,633 | 14,872 | ||||||||||||||||||||||||
| Class I |
2,456 | 26,793 | 2,510 | 24,703 | 3,493 | 36,750 | 4,072 | 37,499 | ||||||||||||||||||||||||
| Class R1 |
10,875 | 117,344 | 16,410 | 159,836 | 4,665 | 48,608 | 9,686 | 88,338 | ||||||||||||||||||||||||
| Class R2 |
98,649 | 1,066,400 | 101,525 | 990,887 | 55,329 | 575,970 | 59,482 | 542,475 | ||||||||||||||||||||||||
| Class R3 |
32,443 | 352,651 | 37,022 | 363,183 | 23,463 | 245,656 | 26,241 | 240,630 | ||||||||||||||||||||||||
| Class R4 |
1,071 | 11,670 | 761 | 7,477 | 1,032 | 10,846 | 352 | 3,236 | ||||||||||||||||||||||||
| 204,135 | $2,210,813 | 209,228 | $2,045,380 | 110,913 | $1,157,860 | 119,603 | $1,093,380 | |||||||||||||||||||||||||
| Shares reacquired | ||||||||||||||||||||||||||||||||
| Class A |
(328,605 | ) | $(3,485,082 | ) | (318,985 | ) | $(3,061,579 | ) | (192,936 | ) | $(1,946,220 | ) | (92,109 | ) | $(810,830 | ) | ||||||||||||||||
| Class B |
(118,807 | ) | (1,232,423 | ) | (115,496 | ) | (1,110,667 | ) | (59,581 | ) | (593,819 | ) | (57,145 | ) | (484,180 | ) | ||||||||||||||||
| Class C |
(131,588 | ) | (1,391,835 | ) | (70,064 | ) | (661,936 | ) | (67,444 | ) | (669,827 | ) | (49,085 | ) | (437,987 | ) | ||||||||||||||||
| Class I |
(19,978 | ) | (208,056 | ) | (34,682 | ) | (347,454 | ) | (32,101 | ) | (310,971 | ) | (32,246 | ) | (289,568 | ) | ||||||||||||||||
| Class R1 |
(286,994 | ) | (2,977,269 | ) | (246,742 | ) | (2,329,862 | ) | (253,045 | ) | (2,544,489 | ) | (185,482 | ) | (1,676,241 | ) | ||||||||||||||||
| Class R2 |
(1,350,081 | ) | (14,529,731 | ) | (932,648 | ) | (8,964,009 | ) | (1,126,050 | ) | (11,425,858 | ) | (734,389 | ) | (6,402,277 | ) | ||||||||||||||||
| Class R3 |
(394,435 | ) | (4,245,261 | ) | (317,071 | ) | (2,979,268 | ) | (262,792 | ) | (2,648,257 | ) | (255,078 | ) | (2,245,971 | ) | ||||||||||||||||
| Class R4 |
(95,316 | ) | (995,993 | ) | (2,357 | ) | (23,703 | ) | (25,152 | ) | (247,904 | ) | (3,665 | ) | (32,230 | ) | ||||||||||||||||
| (2,725,804 | ) | $(29,065,650 | ) | (2,038,045 | ) | $(19,478,478 | ) | (2,019,101 | ) | $(20,387,345 | ) | (1,409,199 | ) | $(12,379,284 | ) | |||||||||||||||||
| Net change | ||||||||||||||||||||||||||||||||
| Class A |
449,547 | $4,816,975 | 579,748 | $5,539,014 | 359,948 | $3,667,890 | 361,999 | $3,227,139 | ||||||||||||||||||||||||
| Class B |
58,351 | 647,487 | 31,004 | 296,056 | 50,613 | 524,105 | 57,118 | 521,054 | ||||||||||||||||||||||||
| Class C |
262,656 | 2,749,321 | 203,203 | 1,959,242 | 236,968 | 2,382,971 | 121,240 | 1,086,346 | ||||||||||||||||||||||||
| Class I |
44,788 | 500,072 | 2,167 | (6,446 | ) | 61,239 | 671,699 | 40,221 | 308,083 | |||||||||||||||||||||||
| Class R1 |
(74,563 | ) | (756,170 | ) | 46,268 | 376,820 | (86,106 | ) | (887,381 | ) | 139,178 | 1,083,402 | ||||||||||||||||||||
| Class R2 |
542,231 | 5,573,804 | 875,183 | 8,129,752 | 463,962 | 4,463,642 | 928,257 | 8,138,261 | ||||||||||||||||||||||||
| Class R3 |
127,096 | 1,394,521 | 80,933 | 809,627 | 197,189 | 1,989,272 | 185,890 | 1,612,484 | ||||||||||||||||||||||||
| Class R4 |
4,547 | 2,952 | 7,700 | 73,838 | 32,738 | 296,883 | 13,564 | 124,834 | ||||||||||||||||||||||||
| 1,414,653 | $14,928,962 | 1,826,206 | $17,177,903 | 1,316,551 | $13,109,081 | 1,847,467 | $16,101,603 | |||||||||||||||||||||||||
65
Table of Contents
Notes to Financial Statements – continued
| MFS Lifetime 2040 Fund | MFS Lifetime 2050 Fund | |||||||||||||||||||||||||||||||
| Year ended 4/30/11 |
Year ended 4/30/10 |
Year ended 4/30/11 (c) |
Year ended 4/30/10 |
|||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
| Shares sold | ||||||||||||||||||||||||||||||||
| Class A |
334,918 | $3,348,387 | 409,230 | $3,541,273 | 155,270 | $1,652,241 | — | $— | ||||||||||||||||||||||||
| Class B |
71,271 | 728,116 | 72,867 | 615,216 | 14,149 | 147,885 | — | — | ||||||||||||||||||||||||
| Class C |
163,822 | 1,618,718 | 140,211 | 1,197,776 | 13,739 | 143,891 | — | — | ||||||||||||||||||||||||
| Class I |
59,233 | 596,372 | 50,347 | 428,693 | 14,277 | 148,142 | — | — | ||||||||||||||||||||||||
| Class R1 |
152,194 | 1,495,538 | 168,470 | 1,411,829 | 10,001 | 100,015 | — | — | ||||||||||||||||||||||||
| Class R2 |
1,507,856 | 14,834,336 | 1,519,388 | 12,949,090 | 10,019 | 100,222 | — | — | ||||||||||||||||||||||||
| Class R3 |
259,122 | 2,592,803 | 229,260 | 1,961,226 | 11,760 | 120,245 | — | — | ||||||||||||||||||||||||
| Class R4 |
37,529 | 345,045 | 6,892 | 61,025 | 10,000 | 100,000 | — | — | ||||||||||||||||||||||||
| 2,585,945 | $25,559,315 | 2,596,665 | $22,166,128 | 239,215 | $2,512,641 | — | $— | |||||||||||||||||||||||||
| Shares issued to shareholders in reinvestment of distributions |
||||||||||||||||||||||||||||||||
| Class A |
10,569 | $109,711 | 11,819 | $106,610 | 1,514 | $ 16,770 | — | $— | ||||||||||||||||||||||||
| Class B |
1,166 | 12,069 | 2,228 | 20,054 | 91 | 1,009 | — | — | ||||||||||||||||||||||||
| Class C |
1,271 | 13,042 | 1,837 | 16,427 | 91 | 1,009 | — | — | ||||||||||||||||||||||||
| Class I |
3,660 | 38,175 | 4,044 | 36,599 | 132 | 1,466 | — | — | ||||||||||||||||||||||||
| Class R1 |
2,959 | 30,444 | 5,048 | 45,179 | 91 | 1,009 | — | — | ||||||||||||||||||||||||
| Class R2 |
38,633 | 398,688 | 46,796 | 419,758 | 105 | 1,167 | — | — | ||||||||||||||||||||||||
| Class R3 |
8,087 | 83,944 | 10,687 | 96,397 | 112 | 1,246 | — | — | ||||||||||||||||||||||||
| Class R4 |
692 | 7,216 | 458 | 4,144 | 120 | 1,324 | — | — | ||||||||||||||||||||||||
| 67,037 | $693,289 | 82,917 | $745,168 | 2,256 | $25,000 | — | $— | |||||||||||||||||||||||||
| Shares reacquired | ||||||||||||||||||||||||||||||||
| Class A |
(161,329 | ) | $(1,616,920 | ) | (150,140 | ) | $(1,313,280 | ) | (4,803 | ) | $(55,443 | ) | — | $— | ||||||||||||||||||
| Class B |
(45,542 | ) | (446,292 | ) | (58,238 | ) | (504,255 | ) | — | — | — | — | ||||||||||||||||||||
| Class C |
(70,166 | ) | (687,759 | ) | (39,948 | ) | (326,261 | ) | — | — | — | — | ||||||||||||||||||||
| Class I |
(21,111 | ) | (217,528 | ) | (11,572 | ) | (100,351 | ) | (1,611 | ) | (18,160 | ) | — | — | ||||||||||||||||||
| Class R1 |
(89,979 | ) | (869,959 | ) | (119,322 | ) | (1,031,797 | ) | — | — | — | — | ||||||||||||||||||||
| Class R2 |
(1,066,677 | ) | (10,801,646 | ) | (652,168 | ) | (5,652,239 | ) | — | — | — | — | ||||||||||||||||||||
| Class R3 |
(138,539 | ) | (1,351,928 | ) | (191,418 | ) | (1,673,707 | ) | — | — | — | — | ||||||||||||||||||||
| Class R4 |
(18,938 | ) | (192,840 | ) | (1,679 | ) | (14,956 | ) | — | — | — | — | ||||||||||||||||||||
| (1,612,281 | ) | $(16,184,872 | ) | (1,224,485 | ) | $(10,616,846 | ) | (6,414 | ) | $(73,603 | ) | — | $— | |||||||||||||||||||
| Net change | ||||||||||||||||||||||||||||||||
| Class A |
184,158 | $1,841,178 | 270,909 | $2,334,603 | 151,981 | $1,613,568 | — | $— | ||||||||||||||||||||||||
| Class B |
26,895 | 293,893 | 16,857 | 131,015 | 14,240 | 148,894 | — | — | ||||||||||||||||||||||||
| Class C |
94,927 | 944,001 | 102,100 | 887,942 | 13,830 | 144,900 | — | — | ||||||||||||||||||||||||
| Class I |
41,782 | 417,019 | 42,819 | 364,941 | 12,798 | 131,448 | — | — | ||||||||||||||||||||||||
| Class R1 |
65,174 | 656,023 | 54,196 | 425,211 | 10,092 | 101,024 | — | — | ||||||||||||||||||||||||
| Class R2 |
479,812 | 4,431,378 | 914,016 | 7,716,609 | 10,124 | 101,389 | — | — | ||||||||||||||||||||||||
| Class R3 |
128,670 | 1,324,819 | 48,529 | 383,916 | 11,872 | 121,491 | — | — | ||||||||||||||||||||||||
| Class R4 |
19,283 | 159,421 | 5,671 | 50,213 | 10,120 | 101,324 | — | — | ||||||||||||||||||||||||
| 1,040,701 | $10,067,732 | 1,455,097 | $12,294,450 | 235,057 | $2,464,038 | — | $— | |||||||||||||||||||||||||
| (c) | For the period from the commencement of the fund’s investment operations, September 15, 2010, through the stated period end. |
| (6) | Line of Credit |
Each fund, excluding the MFS Lifetime 2050 Fund, and certain other funds managed by MFS participate in a $1.1 billion unsecured committed line of credit, subject to a $1 billion sublimit, provided by a syndication of banks under a credit agreement. Borrowings may be made for temporary financing needs. Interest is charged to participating funds, based on their borrowings, generally at a rate equal to the higher of the Federal Reserve funds rate or one month LIBOR plus an agreed upon spread. A commitment fee, based on the average daily, unused portion of the committed line of credit, is allocated among the
66
Table of Contents
Notes to Financial Statements – continued
participating funds at the end of each calendar quarter. In addition, each fund and other funds managed by MFS have established unsecured uncommitted borrowing arrangements with certain banks for temporary financing needs. Interest is charged to each fund, based on its borrowings, at a rate equal to the Federal Reserve funds rate plus an agreed upon spread. For the year ended April 30, 2011, each fund’s commitment fee and interest expense were equal to the following and are included in miscellaneous expense on the Statements of Operations:
| MFS Lifetime Retirement Income Fund |
MFS Lifetime 2010 Fund |
MFS Lifetime 2020 Fund |
MFS Lifetime 2030 Fund |
MFS Lifetime 2040 Fund |
MFS Lifetime 2050 Fund |
|||||||||||||||||||
| Commitment Fee | $687 | $453 | $1,005 | $749 | $515 | N/A | ||||||||||||||||||
| Interest Expense | — | — | — | — | — | — | ||||||||||||||||||
| (7) | Transactions in Underlying Affiliated Funds-Affiliated Issuers |
An affiliated issuer may be considered one in which each fund owns 5% or more of the outstanding voting securities, or a company which is under common control. For the purposes of this report, each fund assumes the following to be affiliated issuers:
| MFS Lifetime Retirement Income Fund | ||||||||||||||||
| Underlying Affiliated Funds |
Beginning Share/Par Amount |
Acquisitions Share/Par Amount |
Dispositions Share/Par Amount |
Ending Share/Par Amount |
||||||||||||
| MFS Commodity Strategy Fund | — | 87,392 | (17,261) | 70,131 | ||||||||||||
| MFS Core Growth Fund | 65,892 | 56,136 | (18,315) | 103,713 | ||||||||||||
| MFS Diversified Target Return Fund | 118,490 | 121,257 | (18,921) | 220,826 | ||||||||||||
| MFS Emerging Markets Debt Fund | 116,609 | 40,755 | (87,808) | 69,556 | ||||||||||||
| MFS Global Bond Fund | — | 511,129 | (42,078) | 469,051 | ||||||||||||
| MFS Global Real Estate Fund | 37,662 | 40,506 | (10,375) | 67,793 | ||||||||||||
| MFS Government Securities Fund | 556,917 | 551,158 | (109,153) | 998,922 | ||||||||||||
| MFS High Income Fund | 503,680 | 447,539 | (94,279) | 856,940 | ||||||||||||
| MFS Inflation-Adjusted Bond Fund | 554,960 | 517,297 | (115,623) | 956,634 | ||||||||||||
| MFS Institutional Money Market Portfolio | — | 4,189,555 | (4,182,671) | 6,884 | ||||||||||||
| MFS International Growth Fund | 24,148 | 18,216 | (6,608) | 35,756 | ||||||||||||
| MFS International Value Fund | 23,669 | 18,656 | (5,759) | 36,566 | ||||||||||||
| MFS Limited Maturity Fund | 1,819,103 | 1,782,200 | (310,357) | 3,290,946 | ||||||||||||
| MFS Mid Cap Growth Fund | 202,775 | 168,661 | (73,224) | 298,212 | ||||||||||||
| MFS Mid Cap Value Fund | 138,453 | 108,004 | (38,926) | 207,531 | ||||||||||||
| MFS New Discovery Fund | 51,644 | 41,930 | (21,860) | 71,714 | ||||||||||||
| MFS Research Bond Fund | 1,372,425 | 1,134,361 | (390,244) | 2,116,542 | ||||||||||||
| MFS Research Fund | 212,051 | 161,477 | (76,079) | 297,449 | ||||||||||||
| MFS Research International Fund | 119,173 | 89,571 | (31,891) | 176,853 | ||||||||||||
| MFS Value Fund | 50,852 | 43,011 | (12,118) | 81,745 | ||||||||||||
| Underlying Affiliated Funds |
Realized Gain (Loss) |
Capital Gain Distributions |
Dividend Income |
Ending Value |
||||||||||||
| MFS Commodity Strategy Fund | $6,927 | $ — | $2,225 | $1,016,902 | ||||||||||||
| MFS Core Growth Fund | (1,926) | — | — | 2,033,805 | ||||||||||||
| MFS Diversified Target Return Fund | (4,821) | — | 43,629 | 2,033,805 | ||||||||||||
| MFS Emerging Markets Debt Fund | 39,469 | 17,485 | 46,397 | 1,016,902 | ||||||||||||
| MFS Global Bond Fund | (10,879) | 13,725 | 106,170 | 5,084,512 | ||||||||||||
| MFS Global Real Estate Fund | (10,486) | 78,736 | 45,014 | 1,016,903 | ||||||||||||
| MFS Government Securities Fund | (14,707) | — | 251,837 | 10,169,025 | ||||||||||||
| MFS High Income Fund | (2,365) | — | 169,920 | 3,050,707 | ||||||||||||
| MFS Inflation-Adjusted Bond Fund | (16,181) | 31,911 | 159,696 | 10,169,025 | ||||||||||||
| MFS Institutional Money Market Portfolio | — | — | 69 | 6,884 | ||||||||||||
| MFS International Growth Fund | (1,800) | — | 7,883 | 1,016,902 | ||||||||||||
| MFS International Value Fund | (2,309) | — | 10,449 | 1,016,902 | ||||||||||||
| MFS Limited Maturity Fund | (45,305) | — | 530,408 | 20,338,049 | ||||||||||||
| MFS Mid Cap Growth Fund | 6,670 | — | — | 3,050,707 | ||||||||||||
| MFS Mid Cap Value Fund | (848) | — | 20,336 | 3,050,707 | ||||||||||||
| MFS New Discovery Fund | 8,424 | 93,278 | — | 2,033,805 | ||||||||||||
| MFS Research Bond Fund | (14,444) | — | 698,202 | 22,371,854 | ||||||||||||
| MFS Research Fund | (46,518) | — | 61,535 | 8,135,220 | ||||||||||||
| MFS Research International Fund | (8,782) | — | 37,657 | 3,050,707 | ||||||||||||
| MFS Value Fund |
(2,256) | — | 25,432 | 2,033,815 | ||||||||||||
| $(122,137) | $235,135 | $2,216,859 | $101,697,138 | |||||||||||||
67
Table of Contents
Notes to Financial Statements – continued
| MFS Lifetime 2010 Fund | ||||||||||||||||
| Underlying Affiliated Funds |
Beginning Share/Par Amount |
Acquisitions Share/Par Amount |
Dispositions Share/Par Amount |
Ending Share/Par Amount |
||||||||||||
| MFS Commodity Strategy Fund | — | 59,158 | (19,784) | 39,374 | ||||||||||||
| MFS Core Growth Fund | 65,474 | 19,615 | (26,861) | 58,228 | ||||||||||||
| MFS Diversified Target Return Fund | 100,822 | 41,163 | (18,007) | 123,978 | ||||||||||||
| MFS Emerging Markets Debt Fund | 104,770 | 10,592 | (76,311) | 39,051 | ||||||||||||
| MFS Global Bond Fund | — | 308,550 | (45,211) | 263,339 | ||||||||||||
| MFS Global Real Estate Fund | 32,001 | 20,563 | (14,502) | 38,062 | ||||||||||||
| MFS Government Securities Fund | 473,513 | 173,530 | (86,218) | 560,825 | ||||||||||||
| MFS High Income Fund | 452,279 | 115,376 | (86,543) | 481,112 | ||||||||||||
| MFS Inflation-Adjusted Bond Fund | 472,475 | 156,564 | (91,955) | 537,084 | ||||||||||||
| MFS Institutional Money Market Portfolio | — | 4,195,959 | (4,138,280) | 57,679 | ||||||||||||
| MFS International Growth Fund | 22,267 | 7,407 | (9,599) | 20,075 | ||||||||||||
| MFS International Value Fund | 21,802 | 7,245 | (8,518) | 20,529 | ||||||||||||
| MFS Limited Maturity Fund | 1,481,302 | 593,551 | (227,215) | 1,847,638 | ||||||||||||
| MFS Mid Cap Growth Fund | 178,914 | 69,465 | (80,954) | 167,425 | ||||||||||||
| MFS Mid Cap Value Fund | 121,879 | 45,948 | (51,313) | 116,514 | ||||||||||||
| MFS New Discovery Fund | 43,915 | 19,042 | (22,695) | 40,262 | ||||||||||||
| MFS Research Bond Fund | 1,146,892 | 356,390 | (314,991) | 1,188,291 | ||||||||||||
| MFS Research Fund | 176,022 | 72,636 | (81,661) | 166,997 | ||||||||||||
| MFS Research International Fund | 104,127 | 41,128 | (45,965) | 99,290 | ||||||||||||
| MFS Value Fund | 50,387 | 15,403 | (19,895) | 45,895 | ||||||||||||
| Underlying Affiliated Funds |
Realized Gain (Loss) |
Capital Gain Distributions |
Dividend Income |
Ending Value |
||||||||||||
| MFS Commodity Strategy Fund | $21,984 | $ — | $1,441 | $570,920 | ||||||||||||
| MFS Core Growth Fund | 22,885 | — | — | 1,141,843 | ||||||||||||
| MFS Diversified Target Return Fund | (1,080) | — | 28,204 | 1,141,840 | ||||||||||||
| MFS Emerging Markets Debt Fund | 135,533 | 11,345 | 33,415 | 570,920 | ||||||||||||
| MFS Global Bond Fund | (5,172) | 8,869 | 68,818 | 2,854,600 | ||||||||||||
| MFS Global Real Estate Fund | (2,259) | 57,140 | 29,138 | 570,923 | ||||||||||||
| MFS Government Securities Fund | (14,227) | — | 170,456 | 5,709,200 | ||||||||||||
| MFS High Income Fund | 683 | — | 116,834 | 1,712,760 | ||||||||||||
| MFS Inflation-Adjusted Bond Fund | (9,009) | 20,483 | 109,420 | 5,709,200 | ||||||||||||
| MFS Institutional Money Market Portfolio | — | — | 38 | 57,679 | ||||||||||||
| MFS International Growth Fund | 11,743 | — | 5,107 | 570,920 | ||||||||||||
| MFS International Value Fund | 4,383 | — | 6,748 | 570,920 | ||||||||||||
| MFS Limited Maturity Fund | (37,163) | — | 356,544 | 11,418,400 | ||||||||||||
| MFS Mid Cap Growth Fund | 89,877 | — | — | 1,712,760 | ||||||||||||
| MFS Mid Cap Value Fund | 65,715 | — | 13,128 | 1,712,760 | ||||||||||||
| MFS New Discovery Fund | 51,253 | 62,087 | — | 1,141,840 | ||||||||||||
| MFS Research Bond Fund | (4,549) | — | 470,725 | 12,560,240 | ||||||||||||
| MFS Research Fund | 44,205 | — | 39,693 | 4,567,360 | ||||||||||||
| MFS Research International Fund | 16,256 | — | 24,780 | 1,712,760 | ||||||||||||
| MFS Value Fund |
20,523 | — | 18,140 | 1,141,856 | ||||||||||||
| $411,581 | $159,924 | $1,492,629 | $57,149,701 | |||||||||||||
68
Table of Contents
Notes to Financial Statements – continued
| MFS Lifetime 2020 Fund | ||||||||||||||||
| Underlying Affiliated Funds |
Beginning Share/Par Amount |
Acquisitions Share/Par Amount |
Dispositions Share/Par Amount |
Ending Share/Par Amount |
||||||||||||
| MFS Commodity Strategy Fund | — | 337,463 | (79,796) | 257,667 | ||||||||||||
| MFS Core Growth Fund | 576,706 | 80,610 | (117,455) | 539,861 | ||||||||||||
| MFS Diversified Target Return Fund | 111,822 | 53,709 | (2,873) | 162,658 | ||||||||||||
| MFS Emerging Markets Debt Fund | 366,325 | 76,908 | (165,752) | 277,481 | ||||||||||||
| MFS Emerging Markets Equity Fund | 3,317 | — | (3,317) | — | ||||||||||||
| MFS Global Bond Fund | — | 663,848 | (37,218) | 626,630 | ||||||||||||
| MFS Global Real Estate Fund | 148,570 | 52,228 | (29,836) | 170,962 | ||||||||||||
| MFS Government Securities Fund | 960,596 | 426,790 | (64,698) | 1,322,688 | ||||||||||||
| MFS High Income Fund | 1,586,806 | 435,061 | (124,188) | 1,897,679 | ||||||||||||
| MFS Inflation-Adjusted Bond Fund | 525,347 | 222,653 | (42,927) | 705,073 | ||||||||||||
| MFS Institutional Money Market Portfolio | — | 5,155,520 | (5,155,509) | 11 | ||||||||||||
| MFS International Growth Fund | 142,812 | 24,699 | (29,267) | 138,244 | ||||||||||||
| MFS International New Discovery Fund | 59,072 | 6,160 | (15,708) | 49,524 | ||||||||||||
| MFS International Value Fund | 139,720 | 22,466 | (19,864) | 142,322 | ||||||||||||
| MFS Limited Maturity Fund | — | 243,584 | — | 243,584 | ||||||||||||
| MFS Mid Cap Growth Fund | 919,813 | 150,285 | (188,761) | 881,337 | ||||||||||||
| MFS Mid Cap Value Fund | 628,107 | 82,309 | (93,926) | 616,490 | ||||||||||||
| MFS New Discovery Fund | 151,343 | 28,794 | (41,335) | 138,802 | ||||||||||||
| MFS Research Bond Fund | 1,464,962 | 509,243 | (371,234) | 1,602,971 | ||||||||||||
| MFS Research Fund | 398,674 | 67,859 | (79,257) | 387,276 | ||||||||||||
| MFS Research International Fund | 458,758 | 79,497 | (81,871) | 456,384 | ||||||||||||
| MFS Value Fund | 443,775 | 62,530 | (80,229) | 426,076 | ||||||||||||
| Underlying Affiliated Funds |
Realized Gain (Loss) |
Capital Gain Distributions |
Dividend Income |
Ending Value |
||||||||||||
| MFS Commodity Strategy Fund | $154,832 | $ — | $9,498 | $3,736,180 | ||||||||||||
| MFS Core Growth Fund | (400,885) | — | — | 10,586,673 | ||||||||||||
| MFS Diversified Target Return Fund | (762) | — | 31,954 | 1,498,081 | ||||||||||||
| MFS Emerging Markets Debt Fund | 141,446 | 73,810 | 193,478 | 4,056,767 | ||||||||||||
| MFS Emerging Markets Equity Fund | 38,408 | — | — | — | ||||||||||||
| MFS Global Bond Fund | (6,541) | 19,170 | 154,191 | 6,792,672 | ||||||||||||
| MFS Global Real Estate Fund | 4,731 | 252,119 | 125,422 | 2,564,434 | ||||||||||||
| MFS Government Securities Fund | (8,413) | — | 372,937 | 13,464,965 | ||||||||||||
| MFS High Income Fund | (43,881) | — | 430,456 | 6,755,739 | ||||||||||||
| MFS Inflation-Adjusted Bond Fund | (1,166) | 22,815 | 125,842 | 7,494,921 | ||||||||||||
| MFS Institutional Money Market Portfolio | — | — | 78 | 11 | ||||||||||||
| MFS International Growth Fund | 37,686 | — | 33,645 | 3,931,655 | ||||||||||||
| MFS International New Discovery Fund | (57,733) | — | 13,370 | 1,206,889 | ||||||||||||
| MFS International Value Fund | 12,477 | — | 44,403 | 3,957,972 | ||||||||||||
| MFS Limited Maturity Fund | — | — | 12,999 | 1,505,348 | ||||||||||||
| MFS Mid Cap Growth Fund | (129,019) | — | — | 9,016,078 | ||||||||||||
| MFS Mid Cap Value Fund | (111,215) | — | 68,754 | 9,062,399 | ||||||||||||
| MFS New Discovery Fund | 175,125 | 209,071 | — | 3,936,420 | ||||||||||||
| MFS Research Bond Fund | 22,367 | — | 581,946 | 16,943,402 | ||||||||||||
| MFS Research Fund | (145,119) | — | 88,502 | 10,591,993 | ||||||||||||
| MFS Research International Fund | (226,291) | — | 106,778 | 7,872,632 | ||||||||||||
| MFS Value Fund |
(361,397) | — | 154,323 | 10,600,762 | ||||||||||||
| $(905,350) | $576,985 | $2,548,576 | 135,575,993 | |||||||||||||
69
Table of Contents
Notes to Financial Statements – continued
| MFS Lifetime 2030 Fund | ||||||||||||||||
| Underlying Affiliated Funds |
Beginning Share/Par Amount |
Acquisitions Share/Par Amount |
Dispositions Share/Par Amount |
Ending Share/Par Amount |
||||||||||||
| MFS Commodity Strategy Fund | — | 363,910 | (52,002) | 311,908 | ||||||||||||
| MFS Core Growth Fund | 543,417 | 122,898 | (71,091) | 595,224 | ||||||||||||
| MFS Diversified Target Return Fund | 36,765 | 27,698 | (2,974) | 61,489 | ||||||||||||
| MFS Emerging Markets Debt Fund | 117,669 | 54,052 | (55,048) | 116,673 | ||||||||||||
| MFS Emerging Markets Equity Fund | 37,575 | 7,406 | (5,264) | 39,717 | ||||||||||||
| MFS Global Bond Fund | — | 225,406 | (15,278) | 210,128 | ||||||||||||
| MFS Global Real Estate Fund | 202,580 | 91,426 | (29,933) | 264,073 | ||||||||||||
| MFS High Income Fund | 510,365 | 340,284 | (52,613) | 798,036 | ||||||||||||
| MFS Inflation-Adjusted Bond Fund | 270,614 | 155,313 | (52,916) | 373,011 | ||||||||||||
| MFS Institutional Money Market Portfolio | — | 3,944,285 | (3,944,274) | 11 | ||||||||||||
| MFS International Growth Fund | 192,314 | 38,398 | (19,663) | 211,049 | ||||||||||||
| MFS International New Discovery Fund | 116,373 | 18,278 | (13,944) | 120,707 | ||||||||||||
| MFS International Value Fund | 188,449 | 45,922 | (18,430) | 215,941 | ||||||||||||
| MFS Mid Cap Growth Fund | 904,776 | 166,783 | (130,313) | 941,246 | ||||||||||||
| MFS Mid Cap Value Fund | 616,499 | 110,164 | (71,443) | 655,220 | ||||||||||||
| MFS New Discovery Fund | 154,088 | 32,267 | (26,558) | 159,797 | ||||||||||||
| MFS Research Bond Fund | 266,181 | 104,952 | (103,477) | 267,656 | ||||||||||||
| MFS Research Fund | 278,954 | 63,099 | (43,639) | 298,414 | ||||||||||||
| MFS Research International Fund | 414,709 | 93,594 | (68,156) | 440,147 | ||||||||||||
| MFS Value Fund | 419,811 | 101,285 | (51,911) | 469,185 | ||||||||||||
| Underlying Affiliated Funds |
Realized Gain (Loss) |
Capital Gain Distributions |
Dividend Income |
Ending Value |
||||||||||||
| MFS Commodity Strategy Fund | $37,547 | $ — | $10,466 | $4,522,666 | ||||||||||||
| MFS Core Growth Fund | (221,710) | — | — | 11,672,335 | ||||||||||||
| MFS Diversified Target Return Fund | (840) | — | 11,764 | 566,316 | ||||||||||||
| MFS Emerging Markets Debt Fund | (2,148) | 27,705 | 70,165 | 1,705,765 | ||||||||||||
| MFS Emerging Markets Equity Fund | 3,119 | — | 5,141 | 1,468,349 | ||||||||||||
| MFS Global Bond Fund | (5,659) | 5,759 | 46,321 | 2,277,785 | ||||||||||||
| MFS Global Real Estate Fund | (24,327) | 354,161 | 184,158 | 3,961,096 | ||||||||||||
| MFS High Income Fund | (12,776) | — | 156,578 | 2,841,008 | ||||||||||||
| MFS Inflation-Adjusted Bond Fund | (2,057) | 12,268 | 65,848 | 3,965,107 | ||||||||||||
| MFS Institutional Money Market Portfolio | — | — | 70 | 11 | ||||||||||||
| MFS International Growth Fund | 7,053 | — | 48,636 | 6,002,232 | ||||||||||||
| MFS International New Discovery Fund | (13,578) | — | 29,465 | 2,941,636 | ||||||||||||
| MFS International Value Fund | 1,595 | — | 64,357 | 6,005,332 | ||||||||||||
| MFS Mid Cap Growth Fund | (152,464) | — | — | 9,628,944 | ||||||||||||
| MFS Mid Cap Value Fund | (105,897) | — | 67,762 | 9,631,735 | ||||||||||||
| MFS New Discovery Fund | 27,498 | 223,787 | — | 4,531,849 | ||||||||||||
| MFS Research Bond Fund | 7,934 | — | 96,857 | 2,829,123 | ||||||||||||
| MFS Research Fund | (154,126) | — | 64,345 | 8,161,627 | ||||||||||||
| MFS Research International Fund | (305,615) | — | 96,403 | 7,592,539 | ||||||||||||
| MFS Value Fund |
(293,697) | — | 157,486 | 11,673,319 | ||||||||||||
| $(1,210,148) | $623,680 | $1,175,822 | $101,978,774 | |||||||||||||
70
Table of Contents
Notes to Financial Statements – continued
| MFS Lifetime 2040 Fund | ||||||||||||||||
| Underlying Affiliated Funds |
Beginning Share/Par Amount |
Acquisitions Share/Par Amount |
Dispositions Share/Par Amount |
Ending Share/Par Amount |
||||||||||||
| MFS Commodity Strategy Fund | — | 286,516 | (41,433) | 245,083 | ||||||||||||
| MFS Core Growth Fund | 381,674 | 108,856 | (55,056) | 435,474 | ||||||||||||
| MFS Emerging Markets Equity Fund | 33,110 | 9,257 | (3,990) | 38,377 | ||||||||||||
| MFS Global Real Estate Fund | 167,528 | 91,283 | (21,643) | 237,168 | ||||||||||||
| MFS Inflation-Adjusted Bond Fund | 125,255 | 71,184 | (29,574) | 166,865 | ||||||||||||
| MFS Institutional Money Market Portfolio | — | 3,537,868 | (3,533,598) | 4,270 | ||||||||||||
| MFS International Growth Fund | 148,852 | 39,659 | (13,342) | 175,169 | ||||||||||||
| MFS International New Discovery Fund | 101,594 | 25,119 | (9,902) | 116,811 | ||||||||||||
| MFS International Value Fund | 145,374 | 48,182 | (14,310) | 179,246 | ||||||||||||
| MFS Mid Cap Growth Fund | 669,892 | 154,528 | (129,365) | 695,055 | ||||||||||||
| MFS Mid Cap Value Fund | 457,555 | 105,741 | (79,190) | 484,106 | ||||||||||||
| MFS New Discovery Fund | 115,467 | 32,621 | (22,599) | 125,489 | ||||||||||||
| MFS Research Bond Fund | 123,129 | 70,200 | (25,522) | 167,807 | ||||||||||||
| MFS Research Fund | 188,663 | 52,455 | (32,945) | 208,173 | ||||||||||||
| MFS Research International Fund | 278,747 | 79,420 | (28,071) | 330,096 | ||||||||||||
| MFS Value Fund | 294,281 | 91,415 | (42,435) | 343,261 | ||||||||||||
| Underlying Affiliated Funds |
Realized Gain (Loss) |
Capital Gain Distributions |
Dividend Income |
Ending Value |
||||||||||||
| MFS Commodity Strategy Fund | $33,029 | $ — | $8,039 | $3,553,704 | ||||||||||||
| MFS Core Growth Fund | (148,605) | — | — | 8,539,643 | ||||||||||||
| MFS Emerging Markets Equity Fund | 1,466 | — | 4,791 | 1,418,808 | ||||||||||||
| MFS Global Real Estate Fund | (33,589) | 302,715 | 161,095 | 3,557,513 | ||||||||||||
| MFS Inflation-Adjusted Bond Fund | (1,262) | 5,622 | 30,099 | 1,773,780 | ||||||||||||
| MFS Institutional Money Market Portfolio | — | — | 77 | 4,270 | ||||||||||||
| MFS International Growth Fund | 7,487 | — | 39,519 | 4,981,819 | ||||||||||||
| MFS International New Discovery Fund | 814 | — | 27,428 | 2,846,688 | ||||||||||||
| MFS International Value Fund | 1,639 | — | 52,394 | 4,984,823 | ||||||||||||
| MFS Mid Cap Growth Fund | (133,220) | — | — | 7,110,417 | ||||||||||||
| MFS Mid Cap Value Fund | (97,490) | — | 49,135 | 7,116,360 | ||||||||||||
| MFS New Discovery Fund | 20,651 | 172,660 | — | 3,558,861 | ||||||||||||
| MFS Research Bond Fund | (835) | — | 58,747 | 1,773,721 | ||||||||||||
| MFS Research Fund | (98,464) | — | 44,299 | 5,693,531 | ||||||||||||
| MFS Research International Fund | (101,835) | — | 71,510 | 5,694,153 | ||||||||||||
| MFS Value Fund |
(214,076) | — | 113,507 | 8,540,342 | ||||||||||||
| $(764,290) | $480,997 | $660,640 | $71,148,433 | |||||||||||||
71
Table of Contents
Notes to Financial Statements – continued
| MFS Lifetime 2050 Fund | ||||||||||||||||
| Underlying Affiliated Funds |
Beginning Share/Par Amount |
Acquisitions Share/Par Amount |
Dispositions Share/Par Amount |
Ending Share/Par Amount |
||||||||||||
| MFS Commodity Strategy Fund | — | 10,456 | (534) | 9,922 | ||||||||||||
| MFS Core Growth Fund | — | 17,954 | (492) | 17,462 | ||||||||||||
| MFS Emerging Markets Equity Fund | — | 1,587 | (44) | 1,543 | ||||||||||||
| MFS Global Real Estate Fund | — | 9,738 | (241) | 9,497 | ||||||||||||
| MFS Inflation-Adjusted Bond Fund | — | 7,006 | (298) | 6,708 | ||||||||||||
| MFS Institutional Money Market Portfolio | — | 356,646 | (344,135) | 12,511 | ||||||||||||
| MFS International Growth Fund | — | 7,163 | (134) | 7,029 | ||||||||||||
| MFS International New Discovery Fund | — | 4,763 | (82) | 4,681 | ||||||||||||
| MFS International Value Fund | — | 7,413 | (207) | 7,206 | ||||||||||||
| MFS Mid Cap Growth Fund | — | 29,195 | (1,332) | 27,863 | ||||||||||||
| MFS Mid Cap Value Fund | — | 20,046 | (638) | 19,408 | ||||||||||||
| MFS New Discovery Fund | — | 5,364 | (323) | 5,041 | ||||||||||||
| MFS Research Bond Fund | — | 6,958 | (211) | 6,747 | ||||||||||||
| MFS Research Fund | — | 8,518 | (173) | 8,345 | ||||||||||||
| MFS Research International Fund | — | 13,672 | (433) | 13,239 | ||||||||||||
| MFS Value Fund | — | 14,095 | (342) | 13,753 | ||||||||||||
| Underlying Affiliated Funds |
Realized Gain (Loss) |
Capital Gain Distributions |
Dividend Income |
Ending Value |
||||||||||||
| MFS Commodity Strategy Fund | $285 | $ — | $297 | $143,872 | ||||||||||||
| MFS Core Growth Fund | 97 | — | — | 342,431 | ||||||||||||
| MFS Emerging Markets Equity Fund | (19) | — | 175 | 57,036 | ||||||||||||
| MFS Global Real Estate Fund | (219) | 5,740 | 5,787 | 142,447 | ||||||||||||
| MFS Inflation-Adjusted Bond Fund | (68) | 201 | 587 | 71,304 | ||||||||||||
| MFS Institutional Money Market Portfolio | — | — | 5 | 12,511 | ||||||||||||
| MFS International Growth Fund | 32 | — | 1,441 | 199,900 | ||||||||||||
| MFS International New Discovery Fund | 1 | — | 995 | 114,075 | ||||||||||||
| MFS International Value Fund | 24 | — | 1,902 | 200,390 | ||||||||||||
| MFS Mid Cap Growth Fund | 390 | — | — | 285,041 | ||||||||||||
| MFS Mid Cap Value Fund | 76 | — | 1,797 | 285,294 | ||||||||||||
| MFS New Discovery Fund | 183 | 6,274 | — | 142,959 | ||||||||||||
| MFS Research Bond Fund | (28) | — | 1,259 | 71,313 | ||||||||||||
| MFS Research Fund | 12 | — | 1,619 | 228,236 | ||||||||||||
| MFS Research International Fund | 40 | — | 2,564 | 228,381 | ||||||||||||
| MFS Value Fund |
21 | — | 2,686 | 342,167 | ||||||||||||
| $827 | $12,215 | $21,114 | $2,867,357 | |||||||||||||
72
Table of Contents
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of MFS Series Trust XII and Shareholders of MFS Lifetime Funds:
We have audited the accompanying statements of assets and liabilities of MFS Lifetime Retirement Income Fund, MFS Lifetime 2010 Fund, MFS Lifetime 2020 Fund, MFS Lifetime 2030 Fund, MFS Lifetime 2040 and MFS Lifetime 2050 Fund (the “MFS Lifetime Funds”) (six of the funds constituting MFS Series Trust XII), including the portfolios of investments, as of April 30, 2011, and the related statements of operations, statements of changes in net assets and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the MFS Lifetime Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the MFS Lifetime Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the MFS Lifetime Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of April 30, 2011, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the MFS Lifetime Funds at April 30, 2011, statements of operations, statements of changes in net assets and the financial highlights for each of the periods indicated therein, in conformity with U.S. generally accepted accounting principles.
Boston, Massachusetts
June 17, 2011
73
Table of Contents
TRUSTEES AND OFFICERS — IDENTIFICATION AND BACKGROUND
The Trustees and officers of the Trust, as of June 1, 2011, are listed below, together with their principal occupations during the past five years. (Their titles may have varied during that period.) The address of each Trustee and officer is 500 Boylston Street, Boston, Massachusetts 02116.
| Name, Date of Birth |
Position(s) Held with Fund |
Trustee/Officer Since (h) |
Principal Occupations the Past Five Years |
Other Directorships (j) | ||||
| INTERESTED TRUSTEES | ||||||||
| Robert J. Manning (k) (born 10/20/63) |
Trustee | February 2004 | Massachusetts Financial Services Company, Chairman, Chief Executive Officer and Director; President (until December 2009); Chief Investment Officer (until July 2010) | |||||
| Robert C. Pozen (k) (born 8/08/46) |
Trustee | February 2004 | Massachusetts Financial Services Company, Chairman Emeritus; Chairman (until July 2010) | Medtronic, Inc, (medical devices), Director (since 2004); The Neilsen Company (market research), Director (since 2010); Telesat (satellite communications), Director (until November 2007); Bell Canada Enterprises (telecommunications), Director (until February 2009) | ||||
| INDEPENDENT TRUSTEES | ||||||||
| David H. Gunning (born 5/30/42) |
Trustee and Chair of Trustees | January 2004 | Retired; Cleveland-Cliffs Inc. (mining products and service provider), Vice Chairman/Director (until May 2007) | Lincoln Electric Holdings, Inc. (welding equipment manufacturer), Director; Development Alternatives, Inc. (consulting), Director/Non-Executive Chairman; Portman Limited (mining), Director (until 2008) | ||||
| Robert E. Butler (born 11/29/41) |
Trustee | January 2006 | Consultant – investment company industry regulatory and compliance matters | |||||
| Maureen R. Goldfarb (born 4/06/55) |
Trustee | January 2009 | Private investor | |||||
| William R. Gutow (born 9/27/41) |
Trustee | December 1993 | Private investor and real estate consultant; Capital Entertainment Management Company (video franchise), Vice Chairman | Atlantic Coast Tan (tanning salons), Vice Chairman (until 2007); Texas Donuts (donut franchise), Vice Chairman (until 2010) | ||||
| Michael Hegarty (born 12/21/44) |
Trustee | December 2004 | Private investor | |||||
| John P. Kavanaugh (born 11/04/54) |
Trustee | January 2009 | Private investor; The Hanover Insurance Group, Inc., Vice President and Chief Investment Officer (until 2006); Allmerica Investment Trust, Allmerica Securities Trust and Opus Investment Trust (investment companies), Chairman, President and Trustee (until 2006) | |||||
| J. Dale Sherratt (born 9/23/38) |
Trustee | June 1989 | Insight Resources, Inc. (acquisition planning specialists), President; Wellfleet Investments (investor in health care companies), Managing General Partner | |||||
| Laurie J. Thomsen (born 8/05/57) |
Trustee | March 2005 | Private investor; New Profit, Inc. (venture philanthropy), Executive Partner (until 2010) | The Travelers Companies (property and casualty insurance), Director | ||||
| Robert W. Uek (born 5/18/41) |
Trustee | January 2006 | Consultant to investment company industry | |||||
74
Table of Contents
Trustees and Officers – continued
| Name, Date of Birth |
Position(s) Held with Fund |
Trustee/Officer Since (h) |
Principal Occupations the Past Five Years |
Other Directorships (j) | ||||
| OFFICERS | ||||||||
| Maria F. DiOrioDwyer (k) (born 12/01/58) |
President | March 2004 | Massachusetts Financial Services Company, Executive Vice President and Chief Regulatory Officer (since March 2004) Chief Compliance Officer (since December 2006) | |||||
| Christopher R. Bohane (k) (born 1/18/74) |
Assistant Secretary and Assistant Clerk | July 2005 | Massachusetts Financial Services Company, Vice President and Senior Counsel | |||||
| John M. Corcoran (k) (born 4/13/65) |
Treasurer | October 2008 | Massachusetts Financial Services Company, Senior Vice President (since October 2008); State Street Bank and Trust (financial services provider), Senior Vice President, (until September 2008) | |||||
| Ethan D. Corey (k) (born 11/21/63) |
Assistant Secretary and Assistant Clerk | July 2005 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | |||||
| David L. DiLorenzo (k) (born 8/10/68) |
Assistant Treasurer | July 2005 | Massachusetts Financial Services Company, Vice President | |||||
| Timothy M. Fagan (k) (born 7/10/68) |
Assistant Secretary and Assistant Clerk | September 2005 | Massachusetts Financial Services Company, Vice President and Senior Counsel | |||||
| Robyn L. Griffin (born 7/04/75) |
Assistant Independent Chief Compliance Officer |
August 2008 | Griffin Compliance LLC (provider of compliance services), Principal (since August 2008); State Street Corporation (financial services provider), Mutual Fund Administration Assistant Vice President (October 2006 – July 2008); Liberty Mutual Group (insurance), Personal Market Assistant Controller (April 2006 – October 2006); Deloitte & Touche LLP (professional services firm), Senior Manager (prior to April 2006) | |||||
| Brian E. Langenfeld (k) (born 3/07/73) |
Assistant Secretary and Assistant Clerk | June 2006 | Massachusetts Financial Services Company, Vice President and Senior Counsel (since May 2006); John Hancock Advisers, LLC, Assistant Vice President and Counsel (until April 2006) | |||||
| Ellen Moynihan (k) (born 11/13/57) |
Assistant Treasurer | April 1997 | Massachusetts Financial Services Company, Senior Vice President | |||||
| Susan S. Newton (k) (born 3/07/50) |
Assistant Secretary and Assistant Clerk | May 2005 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | |||||
| Susan A. Pereira (k) (born 11/05/70) |
Assistant Secretary and Assistant Clerk | July 2005 | Massachusetts Financial Services Company, Vice President and Senior Counsel | |||||
| Mark N. Polebaum (k) (born 5/01/52) |
Secretary and Clerk | January 2006 | Massachusetts Financial Services Company, Executive Vice President, General Counsel and Secretary (since January 2006); Wilmer Cutler Pickering Hale and Dorr LLP (law firm), Partner (until January 2006) | |||||
75
Table of Contents
Trustees and Officers – continued
| Name, Date of Birth |
Position(s) Held with Fund |
Trustee/Officer Since (h) |
Principal Occupations the Past Five Years |
Other Directorships (j) | ||||
| Frank L. Tarantino (born 3/07/44) |
Independent Chief Compliance Officer | June 2004 | Tarantino LLC (provider of compliance services), Principal | |||||
| Richard S. Weitzel (k) (born 7/16/70) |
Assistant Secretary and Assistant Clerk | October 2007 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | |||||
| James O. Yost (k) (born 6/12/60) |
Assistant Treasurer | September 1990 | Massachusetts Financial Services Company, Senior Vice President | |||||
| (h) | Date first appointed to serve as Trustee/officer of an MFS fund. Each Trustee has served continuously since appointment unless indicated otherwise. For the period from December 15, 2004 until February 22, 2005, Messrs. Pozen and Manning served as Advisory Trustees. For the period March 2008 until October 2008, Ms. DiOrioDwyer served as Treasurer of the Funds. |
| (j) | Directorships or trusteeships of companies required to report to the Securities and Exchange Commission (i.e., “public companies”). |
| (k) | “Interested person” of the Trust within the meaning of the Investment Company Act of 1940 (referred to as the 1940 Act), which is the principal federal law governing investment companies like the fund, as a result of position with MFS. The address of MFS is 500 Boylston Street, Boston, Massachusetts 02116. |
Each Trustee has been elected by shareholders and each Trustee and officer holds office until his or her successor is chosen and qualified or until his or her earlier death, resignation, retirement or removal. The Trust does not hold annual meetings for the purpose of electing Trustees, and Trustees are not elected for fixed terms. Messrs. Butler, Kavanaugh, Uek and Ms. Thomsen are members of the Trust’s Audit Committee.
Each of the Fund’s Trustees and officers holds comparable positions with certain other funds of which MFS or a subsidiary is the investment adviser or distributor, and, in the case of the officers, with certain affiliates of MFS. As of January 1, 2011, the Trustees served as board members of 105 funds within the MFS Family of Funds.
The Statement of Additional Information for the Fund includes further information about the Trustees and is available without charge upon request by calling 1-800-225-2606.
| Investment Adviser | Custodian | |
| Massachusetts Financial Services Company | State Street Bank and Trust | |
| 500 Boylston Street, Boston, MA 02116-3741 | 1 Lincoln Street, Boston, MA 02111-2900 | |
| Distributor | Independent Registered Public Accounting Firm | |
| MFS Fund Distributors, Inc. | Ernst & Young LLP | |
| 500 Boylston Street, Boston, MA 02116-3741 | 200 Clarendon Street, Boston, MA 02116 | |
| Portfolio Manager | ||
| Joseph Flaherty |
76
Table of Contents
BOARD REVIEW OF INVESTMENT ADVISORY AGREEMENT
A discussion regarding the Board’s most recent review and renewal of each fund’s Investment Advisory Agreement with MFS is available by clicking on the fund’s name under “Mutual Funds” in the “Products and Performance” section of the MFS Web site (mfs.com).
PROXY VOTING POLICIES AND INFORMATION
A general description of the MFS funds’ proxy voting policies and procedures is available without charge, upon request, by calling 1-800-225-2606, by visiting the Proxy Voting section of mfs.com or by visiting the SEC’s Web site at http://www.sec.gov.
Information regarding how the fund voted proxies relating to portfolio securities during the twelve-month period ended June 30, 2010 is available without charge by visiting the Proxy Voting section of mfs.com or by visiting the SEC’s Web site at http://www.sec.gov.
QUARTERLY PORTFOLIO DISCLOSURE
The fund will file a complete schedule of portfolio holdings with the Securities and Exchange Commission (the Commission) for the first and third quarters of each fiscal year on Form N-Q. The fund’s Form N-Q may be reviewed and copied at the:
Public Reference Room
Securities and Exchange Commission
100 F Street, NE, Room 1580
Washington, D.C. 20549
Information on the operation of the Public Reference Room may be obtained by calling the Commission at 1-800-SEC-0330. The fund’s Form N-Q is available on the EDGAR database on the Commission’s Internet Web site at http://www.sec.gov, and copies of this information may be obtained, upon payment of a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov or by writing the Public Reference Section at the above address.
A shareholder can also obtain the quarterly portfolio holdings report at mfs.com.
From time to time, MFS may post important information about the fund or the MFS funds on the MFS web site (mfs.com). This information is available by visiting the “News & Commentary” section of mfs.com or by clicking on the fund’s name under “Mutual Funds” in the “Products and Performance” section of mfs.com.
FEDERAL TAX INFORMATION (unaudited)
The funds will notify shareholders of amounts for use in preparing 2011 income tax forms in January 2012. The following information is provided pursuant to provisions of the Internal Revenue Code.
The funds designate the maximum amount allowable as qualified dividend income eligible for the 15% tax rate.
For corporate shareholders, the percentages of the ordinary income dividends paid during the fiscal year that qualify for the corporate dividends received deduction are as follows:
| Dividends Received Deductions |
||||
| MFS Lifetime Retirement Income Fund | 5.54% | |||
| MFS Lifetime 2010 Fund | 6.20% | |||
| MFS Lifetime 2020 Fund | 13.97% | |||
| MFS Lifetime 2030 Fund | 24.37% | |||
| MFS Lifetime 2040 Fund | 29.02% | |||
| MFS Lifetime 2050 Fund | 25.05% | |||
77
Table of Contents
rev. 3/11
| FACTS | WHAT DOES MFS DO WITH YOUR PERSONAL INFORMATION? |
|
| Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
| What? | The types of personal information we collect and share depend on the product or service you have with us. This information can include:
• Social Security number and account balances • Account transactions and transaction history • Checking account information and wire transfer instructions
When you are no longer our customer, we continue to share your information as described in this notice. |
| How? | All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons MFS chooses to share; and whether you can limit this sharing. |
| Reasons we can share your personal information | Does MFS share? | Can you limit this sharing? | ||
| For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus |
Yes | No | ||
| For our marketing purposes – to offer our products and services to you |
No | We don’t share | ||
| For joint marketing with other financial companies | No | We don’t share | ||
| For our affiliates’ everyday business purposes – information about your transactions and experiences |
No | We don’t share | ||
| For our affiliates’ everyday business purposes – information about your creditworthiness |
No | We don’t share | ||
| For nonaffiliates to market to you | No | We don’t share |
| Questions? | Call 800-225-2606 or go to mfs.com. |
78
Table of Contents
| Page 2 |
| Who we are | ||
| Who is providing this notice? | MFS Funds, MFS Investment Management, MFS Institutional Advisors, Inc., MFS Fund Distributors, Inc., MFS Heritage Trust Company, and MFS Service Center, Inc. | |
| What we do | ||
| How does MFS protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include procedural, electronic, and physical safeguards for the protection of the personal information we collect about you. | |
| How does MFS collect my personal information? |
We collect your personal information, for example, when you
• open an account or provide account information • direct us to buy securities or direct us to sell your securities • make a wire transfer
We also collect your personal information from others, such as credit bureaus, affiliates and other companies. | |
| Why can’t I limit all sharing? | Federal law gives you the right to limit only
• sharing for affiliates’ everyday business purposes – information about your creditworthiness • affiliates from using your information to market to you • sharing for nonaffiliates to market to you
State laws and individual companies may give you additional rights to limit sharing. | |
| Definitions | ||
| Affiliates | Companies related by common ownership or control. They can be financial and nonfinancial companies.
• MFS does not share personal information with affiliates, except for everyday business purposes as described on page one of this notice. | |
| Nonaffiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies.
• MFS does not share with nonaffiliates so they can market to you. | |
| Joint Marketing | A formal agreement between nonaffiliated financial companies that together market financial products or services to you.
• MFS doesn’t jointly market. | |
| Other important information | ||
| If you own an MFS product or receive an MFS service in the name of a third party such as a bank or broker-dealer, their privacy policy may apply to you instead of ours. | ||
79
Table of Contents
Table of Contents
| ITEM 2. | CODE OF ETHICS. |
The Registrant has adopted a Code of Ethics pursuant to Section 406 of the Sarbanes-Oxley Act and as defined in Form N-CSR that applies to the Registrant’s principal executive officer and principal financial and accounting officer. During the period covered by this report, the Registrant has not amended any provision in its Code of Ethics (the “Code”) that relates to an element of the Code’s definitions enumerated in paragraph (b) of Item 2 of this Form N-CSR. During the period covered by this report, the Registrant did not grant a waiver, including an implicit waiver, from any provision of the Code.
A copy of the Code of Ethics is filed as an exhibit to this Form N-CSR.
| ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
Messrs. Robert E. Butler, John P. Kavanaugh and Robert W. Uek and Ms. Laurie J. Thomsen, members of the Audit Committee, have been determined by the Board of Trustees in their reasonable business judgment to meet the definition of “audit committee financial expert” as such term is defined in Form N-CSR. In addition, Messrs. Butler, Kavanaugh and Uek and Ms. Thomsen are “independent” members of the Audit Committee (as such term has been defined by the Securities and Exchange Commission in regulations implementing Section 407 of the Sarbanes-Oxley Act of 2002). The Securities and Exchange Commission has stated that the designation of a person as an audit committee financial expert pursuant to this Item 3 on the Form N-CSR does not impose on such a person any duties, obligations or liability that are greater than the duties, obligations or liability imposed on such person as a member of the Audit Committee and the Board of Trustees in the absence of such designation or identification.
| ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
Items 4(a) through 4(d) and 4(g):
The Board of Trustees has appointed Ernst & Young LLP (“E&Y”) to serve as independent accountants to certain series of the Registrant (collectively, the “Funds”). The tables below set forth the audit fees billed to the Funds as well as fees for non-audit services provided to the Funds and/or to the Funds’ investment adviser, Massachusetts Financial Services Company (“MFS”) and to various entities either controlling, controlled by, or under common control with MFS that provide ongoing services to the Funds (“MFS Related Entities”).
For the fiscal years ended April 30, 2011 and 2010, audit fees billed to the Funds by E&Y were as follows:
Table of Contents
| Audit Fees | ||||||||
| 2011 | 2010 | |||||||
| Fees billed by E&Y: |
||||||||
| MFS Lifetime Retirement Income Fund |
25,553 | 25,284 | ||||||
| MFS Lifetime 2011 Fund |
25,553 | 25,284 | ||||||
| MFS Lifetime 2020 Fund |
25,553 | 25,284 | ||||||
| MFS Lifetime 2030 Fund |
25,553 | 25,284 | ||||||
| MFS Lifetime 2040 Fund |
25,553 | 25,284 | ||||||
| MFS Lifetime 2050 Fund |
13,050 | N/A | ** | |||||
| Total |
140,815 | 126,420 | ||||||
For the fiscal years ended April 30, 2011 and 2010, fees billed by E&Y for audit-related, tax and other services provided to the Funds and for audit-related, tax and other services provided to MFS and MFS Related Entities were as follows:
| Audit-Related Fees1 | Tax Fees2 | All Other Fees3 | ||||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
| Fees billed by E&Y: |
||||||||||||||||||||||||
| To MFS Lifetime Retirement Income Fund |
0 | 0 | 4,671 | 4,621 | 0 | 0 | ||||||||||||||||||
| To MFS Lifetime 2011 Fund |
0 | 0 | 4,671 | 4,621 | 0 | 0 | ||||||||||||||||||
| To MFS Lifetime 2020 Fund |
0 | 0 | 4,671 | 4,621 | 0 | 0 | ||||||||||||||||||
| To MFS Lifetime 2030 Fund |
0 | 0 | 4,671 | 4,621 | 0 | 0 | ||||||||||||||||||
| To MFS Lifetime 2040 Fund |
0 | 0 | 4,671 | 4,621 | 0 | 0 | ||||||||||||||||||
| To MFS Lifetime 2050 Fund |
0 | N/A | ** | 4,650 | N/A | ** | 0 | N/A | ** | |||||||||||||||
| Total fees billed by E&Y |
0 | 0 | 28,005 | 23,105 | 0 | 0 | ||||||||||||||||||
| To above Funds: |
||||||||||||||||||||||||
| To MFS and MFS Related Entities of MFS Lifetime Retirement Income Fund* |
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
| To MFS and MFS Related Entities of MFS Lifetime 2011 Fund* |
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
| To MFS and MFS Related Entities of MFS Lifetime 2020 Fund* |
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
| To MFS and MFS Related Entities of MFS Lifetime 2030 Fund* |
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
| To MFS and MFS Related Entities of MFS Lifetime 2040 Fund* |
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
| To MFS and MFS Related Entities of MFS Lifetime 2050 Fund* |
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Table of Contents
| 2011 | 2010 | |||||||
| Aggregate fees for non-audit services: | ||||||||
| To MFS Lifetime Retirement Income Fund, MFS and MFS Related Entities# |
232,345 | 216,421 | ||||||
| To MFS Lifetime 2011 Fund, MFS and MFS Related Entities# |
232,345 | 216,421 | ||||||
| To MFS Lifetime 2020 Fund, MFS and MFS Related Entities# |
232,345 | 216,421 | ||||||
| To MFS Lifetime 2030 Fund, MFS and MFS Related Entities# |
232,345 | 216,421 | ||||||
| To MFS Lifetime 2040 Fund, MFS and MFS Related Entities# |
232,345 | 216,421 | ||||||
| To MFS Lifetime 2050 Fund, MFS and MFS Related Entities# |
232,324 | 211,800 | ||||||
| * | This amount reflects the fees billed to MFS and MFS Related Entities for non-audit services relating directly to the operations and financial reporting of the Funds (portions of which services also related to the operations and financial reporting of other funds within the MFS Funds complex). |
| ** | MFS Lifetime 2050 Fund commenced investment operations in September, 2010. |
| # | This amount reflects the aggregate fees billed by Deloitte or E&Y, as the case may be, for non-audit services rendered to the Funds and for non-audit services rendered to MFS and the MFS Related Entities. |
| 1 | The fees included under “Audit-Related Fees” are fees related to assurance and related services that are reasonably related to the performance of the audit or review of financial statements, but not reported under “Audit Fees,” including accounting consultations, agreed-upon procedure reports, attestation reports, comfort letters and internal control reviews. |
| 2 | The fees included under “Tax Fees” are fees associated with tax compliance, tax advice and tax planning, including services relating to the filing or amendment of federal, state or |
Table of Contents
| local income tax returns, regulated investment company qualification reviews and tax distribution and analysis. |
| 3 | The fees under “All Other Fees” are fees for products and services provided by E&Y other than those reported under “Audit Fees,” “Audit-Related Fees” and “Tax Fees”. |
Item 4(e)(1):
Set forth below are the policies and procedures established by the Audit Committee of the Board of Trustees relating to the pre-approval of audit and non-audit related services:
To the extent required by applicable law, pre-approval by the Audit Committee of the Board is needed for all audit and permissible non-audit services rendered to the Funds and all permissible non-audit services rendered to MFS or MFS Related Entities if the services relate directly to the operations and financial reporting of the Registrant. Pre-approval is currently on an engagement-by-engagement basis. In the event pre-approval of such services is necessary between regular meetings of the Audit Committee and it is not practical to wait to seek pre-approval at the next regular meeting of the Audit Committee, pre-approval of such services may be referred to the Chair of the Audit Committee for approval; provided that the Chair may not pre-approve any individual engagement for such services exceeding $50,000 or multiple engagements for such services in the aggregate exceeding $100,000 in each period between regular meetings of the Audit Committee. Any engagement pre-approved by the Chair between regular meetings of the Audit Committee shall be presented for ratification by the entire Audit Committee at its next regularly scheduled meeting.
Item 4(e)(2):
None, or 0%, of the services relating to the Audit-Related Fees, Tax Fees and All Other Fees paid by the Fund and MFS and MFS Related Entities relating directly to the operations and financial reporting of the Registrant disclosed above were approved by the audit committee pursuant to paragraphs (c)(7)(i)(C) of Rule 2-01 of Regulation S-X (which permits audit committee approval after the start of the engagement with respect to services other than audit, review or attest services, if certain conditions are satisfied).
Item 4(f): Not applicable.
Item 4(h): The Registrant’s Audit Committee has considered whether the provision by a Registrant’s independent registered public accounting firm of non-audit services to MFS and MFS Related Entities that were not pre-approved by the Committee (because such services did not relate directly to the operations and financial reporting of the Registrant) was compatible with maintaining the independence of the independent registered public accounting firm as the Registrant’s principal auditors.
| ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable to the Registrant.
Table of Contents
| ITEM 6. | INVESTMENTS |
A schedule of investments of the Registrant is included as part of the report to shareholders of such series under Item 1 of this Form N-CSR.
| ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable to the Registrant.
| ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable to the Registrant.
| ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. |
Not applicable to the Registrant.
| ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
There were no material changes to the procedures by which shareholders may send recommendations to the Board for nominees to the Registrant’s Board since the Registrant last provided disclosure as to such procedures in response to the requirements of Item 407 (c)(2)(iv) of Regulation S-K or this Item.
| ITEM 11. | CONTROLS AND PROCEDURES. |
| (a) | Based upon their evaluation of the effectiveness of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as conducted within 90 days of the filing date of this report on Form N-CSR, the registrant’s principal financial officer and principal executive officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. |
| (b) | There were no changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by the report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
| ITEM 12. | EXHIBITS. |
Table of Contents
| (a) | File the exhibits listed below as part of this form. Letter or number the exhibits in the sequence indicated. |
| (1) | Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Code of Ethics attached hereto. |
| (2) | A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) 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. |
Table of Contents
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.
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) MFS SERIES TRUST XII
| By (Signature and Title)* | MARIA F. DIORIODWYER | |||
| Maria F. DiOrioDwyer, President |
Date: June 17, 2011
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. DIORIODWYER | |||
| Maria F. DiOrioDwyer, President (Principal Executive Officer) |
Date: June 17, 2011
| By (Signature and Title)* | JOHN M. CORCORAN | |||
| John M. Corcoran, Treasurer (Principal Financial Officer and Accounting Officer) |
Date: June 17, 2011
| * | Print name and title of each signing officer under his or her signature. |