Principles of Long-Term Investing Resilience Powering through the ups and downs

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Principles of Long-Term Investing Resilience Powering through the ups and downs

It’s hard to stay calm when you’re bombarded by news about the economy and markets. Anxiety about your portfolio can creep in, and before you know it, a media barrage may turn your anxiety into panic. And if that’s not enough, investing has become more complex, pushing investors to take on more risk to achieve the same return they did 10 or 20 years ago.* So how do you keep calm when market volatility heats up? By considering the Principles of Long-Term Investing With Resilience.

1 2 3 4 5

Understand Volatility Is You Control Your Take a Compounding Market Normal Emotions and Longer View and How It Movements Behavior Works

6 7 8 9 10

Diversification Investments Importance Understanding Benefits of Benefits Should Align of Rebalancing Risk Is Critical Working With a With Your Goals Professional

* S ource: 2021 Callan, LLC. Hypothetical portfolios were created using historical index risk, return and correlations to achieve a 7.5% total return. Portfolios rebalanced monthly. All dates are as of December 31, 2019. Risk is measured by standard deviation. 1 Understand Market Movements

Markets have been resilient: History has shown declines have not lasted.

Key points Calendar year returns In the past 41 years, only 9 n Largest Intra-year decline n A selloff, a correction, declines have led a bear market. Whatever to a down year. it’s called, it can be 40 34% unsettling; but, market 31% 30% 29% 30 declines are inevitable 26% 26% 27% 26% 27% 26% and completely normal. 23% 20% 20% 19% 20 17% 16% n Time after time, the stock 15% 15% 14% 12% 13% 13% market has recovered 9% 11% 10% 10 from the disruptive, but 6% 4% 3% 4% ultimately short-term, 1% 2% 0 0% declines and has gone -2% -1% -3% on to post gains. -7% -3% -10 -6% -6% -5% -6% -10% -7% -8% -10% -6% -9% -8% -8% -9% -8% -8% -7% -8% -7% -7% -11% -13% -10% -10% -13% -12% -12%-11% -20 -14% -17% -17% -18% -17% -16% -20% -19% -23% -19% -20% -30 -30% -28% -34% -34% -40 -34% -38%

-50 -49% 1980 1985 1990 1995 2000 2005 2010 2015 2020

Moving out of stocks potentially locks in losses and may prevent you from profiting from subsequent gains.

FactSet and S&P US. Daily data as of 31 December 1979 to 31 December 2020. Returns above are in US dollars and calculated based on the S&P 500 Price Return Index. The S&P 500 Index measures the broad US stock market. Largest Intra-year decline is the largest drawdown (peak-to-trough) within each calendar year. These data are not intended to represent the performance of any MFS portfolio. It is not possible to invest in an index. 2 Volatility Is Normal

Historically, bull markets have beaten bears and driven long term gains.

History of Dow ones Industrial Average, 4/28/42–12/31/20 Key points 1/14/00 2/12/20 351.4% 395.7% n Markets are always moving — up, down and sideways. They 100,000 8/25/87 3/19/02 10/9/07 rarely go straight up. AVERAGE BULL 250.4% 29.1% 94.4% MARKET RETURN: n Over time, stock markets have Up 145.7%1 moved higher, bouncing back 12/13/61 1/11/73 4/27/81 7/16/90 12/31/20 from what prove to be short- AVERAGE DURATION: 354.8% 66.6% 38.0% 72.5% 64.6% 10,000 Over 4 years1 So far term declines. 2/9/66 85.7% n And if you sell when the 3/23/20 5/29/46 -37.1% market falls, you’ll likely miss a 128.7% 12/3/68 9/21/76 10/9/02 3/9/09 rebound and any subsequent Bull-market gain 32.4% 75.7% -31.5% -53.8% gains, possibly falling short of your goals. 1,000 10/11/90 9/21/01 -21.2% -29.7%

DOW JONES INDUSTRIAL AVERAGE 5/26/70 2/28/78 10/19/87 -35.9% -26.9% -36.1% AVERAGE BEAR 100 MARKET RETURN: 10/7/66 12/6/74 8/12/82 Down 32.1%1 4/28/42 -25.2% -45.1% -24.1% 6/13/49 AVERAGE DURATION: -24.0% 6/26/62 Over 1 year1 Bear-market drop -27.1%

10

1940 1950 1960 1970 1980 1990 2000 2010 2020

Investing for the long term and having a disciplined plan can help you work toward reaching your goals.

Source: SPAR, FactSet Research Systems Inc. Past performance is no guarantee of future results. It is not possible to invest in an index. 1 Dow Jones Industrial Average, 4/28/42–12/31/20. Returns are shown based on price only. 3 You Control Your Emotions and Behavior

The average investor underperformed1

Key points Market returns vs. average investor returns, 2000–20202 n A financial professional can help you determine your overall comfort level with risk. S&P 500 Total Return Index 7.47% n Allocate, diversify and rebalance your assets accordingly n Review your overall investment Average Equity Fund Investor3 5.96% portfolio, at least annually, to help keep you focused and on course with your goals Bloomberg Barclays US Aggregate Bond 4.83% n Choose investments aligned with your goals and risk tolerances and help you 4 stay focused and on track as Average Fixed Income Fund Investor 0.57% markets shift

0 1 2 3 4 5 6 7 8

Source: Dalbar, 2021 QAIB Report, as of December 31, 2020. An financial professional will help you create a suitable financial strategy for This example is for illustrative purposes only pursuing your long-term financial goals. and is not intended to represent the future performance of any MFS® product. Although the data is gathered from sources believed to be reliable, MFS cannot guarantee the 1 accuracy and/or completeness of the The Average Investor refers to the universe of all mutual funds investors whose actions and financial results are restated to represent a single investor. This approach information. allows the entire universe of mutual funds investors to be used as the statistical sample, ensuring ultimate reliability. 2 The S&P 500 Total Return Index measures Average investor return performance: Methodology: QAIB calculates investor returns as the change in assets, after excluding sales, redemptions, and exchanges. This the broad US stock market. Bloomberg method of calculation captures realized and unrealized capital gains, dividends, interest, trading costs, sales charges, fees, expenses and any other costs. After calculating Barclays US Aggregate Bond Index investor returns in dollar terms, two percentages are calculated: total investor rate for the period and annualized investor return rate. Total return rate is determined by measures the U.S. bond market. calculating the investor return dollars as a percentage of the net assets, sales, redemptions and exchanges for the period. Annualized return rate is calculated as the uniform rate that can be compounded annually for the period under consideration to produce the investor return dollars. Past performance is no guarantee of 3 future results. Keep in mind that all The Average Equity Fund Investor comprises a universe of both domestic and world equity mutual funds. It includes growth, sector, alternative strategy, value, blend investments carry a certain amount of emerging markets, global equity, international equity and regional equity. risk, including the possible loss of the 4 The Average Fixed Income Investor is comprised of a universe of fixed income mutual funds, which includes investment- grade, high-yield, government, municipal, principal amount invested. multisector, and global bond funds. It does not include money market funds. 4 Take a Longer View

Building wealth takes time. Think long term.

Key points Stocks have generated positive returns 100% of the time over 20-year periods as of 12/31/20 % of time periods S&P 500 went up n Historically, investing in stocks has been one of the best ways % of time periods S&P 500 went down to build wealth, because of their long-term growth potential relative to bonds and/or cash. 1-year periods 74% 26% n Yet many investors underinvest in stocks or try to time the market. n In either case, investors could be 5-year periods 83% 17% missing opportunities. n That’s because over long periods of time, the stock market has historically generated positive 10-year periods 92% 8% returns.

20-year periods 100%

0 20 40 60 80 100

As part of a well-balanced portfolio, consider stocks for their long-term growth potential.

The investments you choose should correspond to your financial needs, goals, and risk tolerance. For assistance in determining your financial situation, consult an investment professional. Source: Factset. The historical performance of the index cited is provided to illustrate market trends; it does not represent the performance of a particular MFS® investment product. The S&P 500 (Price Return) Index is a commonly used measure of the broad stock market. Index performance does not take into account fees and expenses. It is not possible to invest directly in an index. Past performance is no guarantee of future results. Common stocks generally provide an opportunity for more capital appreciation than fixed-income investments but have also been subject to greater market fluctuations. Keep in mind that all investments do not guarantee a profit or protect against a loss. 5 Compounding and How It Works

The power of compounding drives value.

Key points Hypothetical $1,000 investment with compounded yearly returns $10,286 6% rate of return1 n Compounding occurs when an 5% rate of return1 asset’s earnings, either gains 3% rate of return1 or income, are reinvested to generate additional earnings. 8,000 n Compounding of gains and income over the long term is what $7,040 typically drives most of the value in an investment or portfolio. $5,743 6,000 n Conservative investments like Treasury bills or even bonds may not provide the growth potential 2 needed to achieve goals. 4,000 $3,207 $4,322 $3,262 n Despite higher volatility, a more aggressive investment, like stocks, may provide the growth $1,791 $2,653 potential needed to pursue goals. 2,000 $2,427 $1,000 $1,806 $1,000 $1,629 $1,000 $1,344

0 YEARS 10 YEARS 20 YEARS 30 YEARS 40 YEARS Differences in the performance of stocks, bonds and cash can grow over time.

Source: MFS research. This example is for illustrative purposes only and is not intended to predict the returns of any investment choices. Regular investing does not ensure a profit or protect against loss in declining markets. Investors should consider their ability to continue purchasing shares during periods of low price levels. 1 Assumed rate of return. Does not represent the performance of any MFS fund, which would vary according to the rise and the fall of the markets. It is not realistic to expect that the stock market or any investment vehicle will have 20 or more years of positive returns. These examples are for illustrative purposes only and are not intended to predict the returns of any investment choices. Rates of return will vary over time, particularly for long-term investments. There is no guarantee the selected rate of return can be achieved. The performance of the investments will fluctuate with market conditions. 2 Treasury bills are guaranteed as to the timely payment of principal and interest. 6 Diversification Benefits

A Tale of Two Decades: One Decade’s Laggards . . . 10 YEAR

MARKET SEGMENT AND REPRESENTED BY ENTIRE DECADE 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001-2010 Cash 1 REITs Commodities Small/Mid Cap REITs Commodities REITs Commodities Bonds Large Cap Growth REITs REITs FTSE 3-month T-bill Index $115,502 $101,344 $121,075 $219,443 $166,372 $319,260 $197,381 $156,241 $85,831 $267,292 $267,292 15.5% 25.9% 45.5% 30.4% 21.4% 34.4% 16.2% 5.2% 37.2% 27.6% 10.3%

Bonds BEST Bloomberg Barclays US Aggregate Bond Index2 Bonds Global Bonds International International International International Large Cap Growth Global Bonds Small/Mid Cap Small/Mid Cap Small/Mid Cap $108,444 $118,358 $91,515 $110,045 $124,940 $157,850 $101,612 $170,032 $154,898 $196,270 $196,270 Global bonds 8.4% 16.5% 38.6% 20.2% 13.5% 26.3% 11.8% 4.8% 34.4% 26.7% 7% Bloomberg Barclays Global Aggregate Index Cash Bonds REITs Small/Mid Cap REITs Large Cap Value International Cash International Commodities Global Bonds Diversified portfolio $104,088 $119,565 $168,272 $143,224 $237,631 $158,103 $175,481 $124,622 $130,933 $176,451 $191,896 Equal allocations of all segments disclosed herein, 4.1% 10.3% 38.5% 18.3% 8.3% 22.2% 11.2% 1.8% 31.8% 16.8% 6.7% excluding cash Global Bonds REITs Large Cap Value Large Cap Value Small/Mid Cap Small/Mid Cap Global Bonds Diversified REITs Large Cap Growth Diversified Large Cap Value stocks $101,572 $121,526 $103,706 $120,811 $154,837 $179,867 $162,263 $127,361 $209,509 $100,174 $182,350 Russell 1000® Value Index4 1.6% 5.2% 30.0% 16.5% 8.1% 16.2% 9.5% -27.5% 27.4% 16.7% 6.2%

Commodities Small/Mid Cap Cash Large Cap Growth Diversified Diversified Diversified Bonds Commodities Diversified Diversified Commodities $101,220 $105,861 $74,460 $135,252 $145,961 $167,891 $148,461 $127,016 $157,567 $182,350 $176,451 Bloomberg Commodity Index5 1.2% 1.7% 29.7% 14.5% 7.9% 15.0% 7.0% -35.6% 23.7% 15.7% 5.8%

Large Cap Growth stocks Diversified Diversified Diversified Global Bonds Large Cap Value Large Cap Growth Cash Small/Mid Cap Large Cap Value Large Cap Value Bonds RETURN ANNUAL Russell 1000® Growth Index7 $95,248 $92,480 $118,145 $145,510 $129,332 $90,876 $122,423 $115,262 $119,297 $137,796 $176,334 -4.8% -2.9% 27.8% 9.3% 7.1% 9.1% 4.7% -36.8% 19.7% 15.5% 5.8% International stocks MSCI EAFE Index6 Large Cap Value Large Cap Value Commodities Commodities Large Cap Growth Global Bonds Diversified Large Cap Value Commodities International International $94,410 $79,755 $125,597 $137,086 $83,316 $148,211 $175,761 $99,672 $151,030 $141,080 $141,080 -5.6% -15.5% 23.9% 9.1% 5.3% 6.6% 4.7% -36.8% 18.9% 7.8% 3.5% Small/Mid Cap stocks TM 8 Russell 2500 Index Commodities International Global Bonds Large Cap Growth Cash Cash Small/Mid Cap REITs Global Bonds Bonds Large Cap Value $80,492 $66,035 $133,165 $79,151 $111,574 $116,885 $182,343 $164,389 $181,815 $176,334 $137,796 REITs -19.5% -15.9% 12.5% 6.3% 3.0% 4.8% 1.4% -37.3% 6.9% 6.5% 3.3% FTSE NAREIT All REITs Total Return Index9 Large Cap Growth Small/Mid Cap Bonds Bonds Bonds Bonds Large Cap Value Large Cap Growth Bonds Global Bonds Cash $79,577 $83,208 $124,472 $129,873 $133,027 $138,792 $157,829 $62,555 $165,507 $191,896 $124,988 -20.4% -17.8% 4.1% 4.3% 2.4% 4.3% -0.2% -38.4% 5.9% 5.5% 2.3% WORST

International Large Cap Growth Cash Cash Global Bonds Commodities REITs International Cash Cash Large Cap Growth $78,557 $57,387 $106,999 $108,325 $138,983 $169,819 $262,332 $99,360 $124,826 $124,988 $100,174 -21.4% -27.9% 1.1% 1.2% -4.5% 2.1% -17.8% -43.4% 0.2% 0.1% 0.0% Source: SPAR, FactSet Research Systems Inc.

IMPORTANT RISK CONSIDERATIONS: International: Investing in foreign and/or emerging market securities involves interest rate, currency exchange rate, economic, and political risks. These risks are magnified in emerging or developing markets as compared with domestic markets.Small/Mid Cap stocks: Investing in small and/or mid-sized companies involves more risk than that customarily associated with investing in more-established companies. Bonds: Bonds, if held to maturity, provide a fixed rate of return and a fixed principal value. Bond funds will fluctuate and, when redeemed, may be worth more or less than their original cost. Real Estate: Real estate-related investments can be volatile because of general, regional, and local economic conditions, fluctuations in interest rates and property tax rates; shifts in zoning laws, environmental regulation and other governmental actions; increased operation expenses; lack of availability of mortgage funds; losses due to natural disasters; changes in property values and rental rates; overbuilding; losses due to casualty or condemnation, cash flows; the management skill and creditworthiness of the REIT manager, and other factors. Commodity: Commodity-related investments can be more volatile than investments in equity securities or debt instruments and can be affected by changes in overall market movements, commodity index volatility, changes in interest rates, currency fluctuations, or factors affecting a particular industry or commodity, and demand/supply imbalances in the market for the commodity. Events that affect the financial services sector may have a significant adverse effect on the portfolio. The historical performance of each index cited is provided to illustrate market trends; it does not represent the performance of a particular MFS® investment product. It is not possible to invest directly in an index. Index performance does not take into account fees and expenses. Past performance is no guarantee of future results. The investments you choose should correspond to your financial needs, goals, and risk tolerance. For assistance in determining your financial situation, consult an investment professional. For more information on any MFS product, including performance, please visit mfs.com. Note that the diversified portfolio’s assets were rebalanced at the end of every quarter to maintain the equal allocations throughout the period. 6 Diversification Benefits

May Be the Next Decade’s Leaders 10 YEAR 20 YEAR

ENTIRE DECADE WHOLE PERIOD 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011-2020 2001-2020

Bonds REITs Small/Mid Cap REITs Large Cap Growth Small/Mid Cap Large Cap Growth Cash Large Cap Growth Large Cap Growth Large Cap Growth REITs $107,842 $128,888 $157,205 $169,136 $188,642 $192,183 $263,017 $103,266 $353,298 $489,294 $489,294 $638,449 7.8% 20.1% 36.8% 27.1% 5.7% 17.6% 30.2% 1.9% 36.4% 38.5% 17.2% 9.7%

Key points BEST REITs Small/Mid Cap Large Cap Growth Large Cap Value REITs Large Cap Value International Bonds REITs Small/Mid Cap Small/Mid Cap Small/Mid Cap n Diversification spreads your $107,277 $114,919 $157,916 $177,370 $173,009 $200,161 $150,744 $124,709 $253,728 $309,743 $309,743 $607,932 investments between asset 7.3% 17.9% 33.5% 13.5% 2.3% 17.3% 25% 0.0% 28.1% 20.0% 12.0% 9.4% classes that perform differently. Global Bonds Large Cap Value Large Cap Value Large Cap Growth Bonds Commodities Small/Mid Cap Global Bonds Small/Mid Cap Diversified Large Cap Value Large Cap Growth Potentially, strength in one asset $105,643 $117,968 $156,339 $178,524 $117,323 $54,229 $224,490 $113,265 $258,134 $198,848 $271,479 $490,144 5.6% 17.5% 32.5% 13.0% 0.5% 11.8% 16.8% -1.2% 27.8% 10.6% 10.5% 8.3% can offset weakness in another. Large Cap Growth International International Small/Mid Cap Cash REITs Large Cap Value Large Cap Growth Large Cap Value Global Bonds REITs Large Cap Value n In down markets, diversification $102,642 $103,073 $126,551 $168,320 $100,260 $189,069 $227,512 $259,036 $264,096 $132,140 $238,858 $374,086 may help your portfolio lose less 2.6% 17.3% 22.8% 7.1% 0.0% 9.3% 13.7% -1.5% 26.5% 9.2% 9.1% 6.8% value than the market. In up Large Cap Value Large Cap Growth Diversified Bonds International Diversified Diversified REITs International International Diversified Diversified markets, diversification can $100,390 $118,303 $126,842 $116,682 $119,368 $140,405 $158,946 $198,119 $158,566 $170,959 $198,848 $362,598 0.4% 15.3% 13.4% 6.0% -0.8% 8.7% 13.2% -4.1% 22.0% 7.8% 7.1% 6.7% help your portfolio take part in market gains. Cash Diversified REITs Diversified Small/Mid Cap Large Cap Growth REITs Diversified Diversified Bonds International Bonds RETURN ANNUAL $100,076 $111,839 $133,024 $133,594 $163,436 $201,991 $206,590 $149,443 $179,826 $145,757 $170,959 $257,019 n A look at long-term rather than 0.1% 12.0% 3.2% 5.3% -2.9% 7.1% 9.3% -6.0% 20.3% 7.5% 5.5% 4.8% short-term, performance shows Diversified Global Bonds Cash Global Bonds Global Bonds Bonds Global Bonds Large Cap Value Bonds Large Cap Value Bonds Global Bonds how diversification can help your $99,840 $110,205 $100,198 $107,971 $104,565 $120,430 $114,640 $208,703 $135,580 $271,479 $145,747 $253,571 portfolio navigate volatility -0.2% 4.3% 0.0% 0.6% -3.2% 2.6% 7.4% -8.3% 8.7% 2.8% 3.8% 4.8% and potentially get you closer Small/Mid Cap Bonds Bonds Cash Diversified Global Bonds Bonds Small/Mid Cap Commodities Cash Global Bonds International $97,491 $112,387 $110,113 $100,231 $129,147 $106,746 $124,695 $202,036 $52,716 $106,205 $132,140 $241,189 to your goals. -2.5% 4.2% -2.0% 0.0% -3.3% 2.1% 3.5% -10.0% 7.7% 0.6% 2.8% 4.5%

International Cash Global Bonds International Large Cap Value International Commodities Commodities Global Bonds Commodities Cash Cash $87,859 $100,148 $107,342 $120,348 $170,582 $120,562 $55,153 $48,951 $121,011 $51,069 $106,205 $132,743 -12.1% 0.1% -2.6% -4.9% -3.8% 1.0% 1.7% -11.2% 6.8% -3.1% 0.6% 1.4% WORST

Commodities Commodities Commodities Commodities Commodities Cash Cash International Cash REITs Commodities Commodities $86,680 $85,764 $77,596 $64,398 $48,520 $100,531 $101,377 $129,956 $105,592 $238,858 $51,069 $90,111 -13.3% -1.1% -9.5% -17.0% -24.7% 0.3% 0.8% -13.8% 2.3% -5.9% -6.5% -0.5%

You can’t predict the winners and losers. Diversification, however, can potentially add value and help you manage risk.

Diversification does not guarantee a profit or protect against a loss. 1 FTSE 3-month Treasury Bill Index tracks the daily performance of 3-month US Treasury bills. 2 Bloomberg Barclays U.S. Aggregate Bond Index measures the US bond market. 3 Bloomberg Barclays Global Aggregate Index provides a broad-based measure of the global investment-grade fixed income markets. 4 Russell 1000® Value Index measures US large-cap value stocks. 5 Bloomberg Commodity Index is composed of futures contracts on physical commodities. 6 MSCI EAFE Index measures the non-US stock market. 7 Russell 1000® Growth Index measures US large-cap growth stocks. 8 Russell 2500™ Index measures US small- and mid-cap stocks. 9 FTSE NAREIT All REITs Total Return Index tracks the performance of commercial real estate across the US economy. It is not possible to invest directly in an index. Note that the diversified portfolio’s assets were rebalanced at the end of every quarter to maintain the equal allocations throughout the period. 7 Investments Should Align With Your Goals

Asset Allocation and Withdrawal Rates Are Key to Achieving Goals.

Key points AGGRESSIVE CONSERVATIVE n Over time, your focus as an Stocks investor likely shifts from growing Bonds your portfolio to preserving it. n Consider aligning your asset allocation with your goals — equities for growth and bonds for income and risk mitigation. Withdrawal Rate 75% US equities/ 50% US equities/ 25% US equities/ 100% US equities 100% bonds n Determining how much money (% of initial portfolio value) 25% bonds 50% bonds 75% bonds you should withdraw annually when retired is equally as PERCENT CHANCES OF THE PAYOUT LASTING 30 YEARS important. n A high withdrawal rate may mean 8% 43% 37% 10% 3% 0% that you outlive your savings. 7% 56% 48% 25% 10% 3%

6% 67% 59% 46% 21% 10%

5% 78% 78% 70% 44% 22%

4% 94% 98% 100% 87% 44%

A suitable asset allocation and prudent withdrawal rate may help you meet your retirement income and estate planning goals.

Chart source: Journal of Financial Planning, September 2012. Data for stock returns are monthly total returns to the S&P 500 Index, and bond returns are total monthly returns to high-grade corporate bonds. Both sets of returns data are from January 1926 through December 2009, as published in the Ibbotson SBBI 2010 Classic Yearbook from Morningstar. Inflation adjustments were calculated using annual values of the CPI-U, as published by the US Bureau of Labor Statistics at www.bls.gov. Updated January 2018 by Wade Pfau, Professor at The American College and Principal at McLean Asset Management as published on Forbes.com. Past performance is no guarantee of future results. 8 Importance of Rebalancing

Don’t make unintended bets. Consider rebalancing your portfolio.

Key points Stocks Bonds n The relative market performance of asset classes shifts over time, Stocks outperformed bonds 1 Bonds outperformed stocks 1 which may alter your portfolio’s 1/1/03–10/9/07 10/10/07–3/9/09 mix of investments. n For instance, if stocks outperform ORIGINAL ALLOCATION AGGRESSIVE ALLOCATION ORIGINAL ALLOCATION CONSERVATIVE ALLOCATION bonds, your allocation to stocks grows, potentially increasing risk. n Conversely, if bonds outperform % 38% 29 stocks and your allocation to Unbalanced Unbalanced % % % % stocks shrinks, you may miss out 50 Allocation 50 on 10/9/07, 50 Allocation 50 on 3/9/09, on 1/1/03 a stock on 10/10/07 a stock on potential growth. % 62 market high market low 71%

Portfolio may be too risky and Portfolio may be too conservative could lose more than the and lag the original portfolio, original portfolio if stocks fall. falling short of goals.

Rebalancing may help your portfolio stay in line with your goals and risk tolerance.

1 Time periods above, reflecting a strong stock market and a strong bond market, respectively, are based on performance of the following indices: Stocks are represented by the S&P 500 Index, which measures the broad US stock market. Bonds are represented by the Bloomberg Barclays U.S. Aggregate Bond Index. Index performance does not reflect the deduction of any investment-related fees and expenses. It is not possible to invest directly in an index. Past performance is no guarantee of future results. 9 Understanding Risk Is Critical

Determining the risk in your portfolio may make the difference when pursuing your goals. Key points MFS: Navigating risk from all angles n While you can’t avoid risk, by understanding its nature, you may be able to manage it. NT ME GE n One aspect to think about is how A N your asset manager tackles risk. A M K S n At MFS, we’ve had a singular I purpose since 1924: to put your R TIME RISKAWARE HORIZONS money to work, responsibly. CULTURE A long-term n One of the ways we do that is Every member of the perspective helps investment team is you distinguish through risk management. responsible for real risk from assessing risk short-term noise

CAPACITY ACTIVE RISK MANAGEMENT MANAGEMENT Close funds to try to protect long-term Evaluating risks as performance for markets change existing clients.

At MFS, we believe managing the downside is just as important as capturing the upside. 10 Realize the Benefits of Working With a Professional

THE FINANCIAL PROFESSIONAL CAN

Key points n A financial professional — who knows your goals, temperament for risk, time horizon and total holdings — could be your most valuable asset in any type of market environment. COMFORT KEEP YOU LONG-TERM LEVEL ON TRACK GOALS Try to help avoid Pursuing Moving you costly mistakes your goals forward

Help you determine Allocate, diversify Create the best possible your overall comfort and rebalance your financial strategy for level with risk assets accordingly pursuing your long-term financial goals

Your financial professional can also review your overall investment portfolio, at least annually, to help keep you focused and on course with your goals. And as the market and your needs change over time, a financial professional will be right there with you, helping you make changes to your portfolio as necessary.

An investment professional will help you create a suitable financial strategy for pursuing your long term financial goals.

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■ Invest for the long term

■ Allocate, diversify and rebalance

■ Manage risk

■ Look for an asset manager that aligns with your goals

Work with your investment professional to develop your investment plan today.

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