Summary Prospectus June 28, 2022 | |
MFS® Diversified IncomeFund
Before you invest, you may wantto review the fund’s prospectus, which contains more information about the fund and its risks. You can find the fund’s prospectusand other information about the fund, including the fund’s reports to shareholders and statement of additional information, onlineat funds.mfs.com. You can also get this information at no cost by calling 1-800-225-2606 or by sending an e-mail request to orderliterature@mfs.com.The fund’s prospectus and statement of additional information, both dated June 28, 2022, as may be amended or supplementedfrom time to time, are incorporated by reference into this summary prospectus.
class | | ticker symbol |
Class A | | DIFAX |
Class C | | DIFCX |
Class I | | DIFIX |
Class R1 | | DIFDX |
Class R2 | | DIFEX |
Class R3 | | DIFFX |
Class R4 | | DIFGX |
Class R6 | | DIFHX |
Summary of Key Information
Investment Objective
The fund’s investment objectiveis to seek total return with an emphasis on current income, but also considering capital appreciation.
Fees and Expenses
This table describes the fees and expensesthat you may pay when you buy, hold, and sell shares of the fund. Investors may also pay commissions or other fees to their financialintermediaries when they buy, hold, and sell shares of the fund, which are not reflected below.
You may qualify for sales charge reductionsif, with respect to Class A shares, you and certain members of your family invest, or agree to invest in the future, at least $100,000in MFS funds. More information about these and other waivers and reductions is available from your financial intermediary and in “SalesCharges and Waivers and Reductions” on page 14 and “Appendix A – Waivers and Reductions of Sales Charges”on page A-1 of the fund’s prospectus.
ShareholderFees (fees paid directly from your investment):
Share Class | | A | | | C | | | I | | | R1 | | | R2 | | | R3 | | | R4 | | | R6 | |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | | | 4.25 | % | | | None | | | | None | | | | None | | | | None | | | | None | | | | None | | | | None | |
Maximum Deferred Sales Charge (Load) (as a percentage of original purchase price or redemption proceeds, whichever is less) | | | 1.00 | %# | | | 1.00 | % | | | None | | | | None | | | | None | | | | None | | | | None | | | | None | |
AnnualFund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment):
Share Class | | A | | | C | | | I | | | R1 | | | R2 | | | R3 | | | R4 | | | R6 | |
Management Fee | | | 0.60 | % | | | 0.60 | % | | | 0.60 | % | | | 0.60 | % | | | 0.60 | % | | | 0.60 | % | | | 0.60 | % | | | 0.60 | % |
Distribution and/or Service (12b-1) Fees | | | 0.25 | % | | | 1.00 | % | | | None | | | | 1.00 | % | | | 0.50 | % | | | 0.25 | % | | | None | | | | None | |
Other Expenses | | | 0.14 | % | | | 0.14 | % | | | 0.14 | % | | | 0.14 | % | | | 0.14 | % | | | 0.14 | % | | | 0.14 | % | | | 0.05 | % |
Total Annual Fund Operating Expenses | | | 0.99 | % | | | 1.74 | % | | | 0.74 | % | | | 1.74 | % | | | 1.24 | % | | | 0.99 | % | | | 0.74 | % | | | 0.65 | % |
Fee Reductions and/or Expense Reimbursements1 | | | (0.01 | )% | | | (0.01 | )% | | | (0.01 | )% | | | (0.01 | )% | | | (0.01 | )% | | | (0.01 | )% | | | (0.01 | )% | | | (0.01 | )% |
Total Annual Fund Operating Expenses After Fee Reductions and/or Expense Reimbursements | | | 0.98 | % | | | 1.73 | % | | | 0.73 | % | | | 1.73 | % | | | 1.23 | % | | | 0.98 | % | | | 0.73 | % | | | 0.64 | % |
| # | This contingent deferred sales charge (CDSC) applies to shares purchased without an initial sales charge and redeemed within 18 months of purchase. |
| 1 | Massachusetts Financial Services Company (MFS) has agreed in writing to waive at least 0.01% of the fund's management fee as part of an agreement pursuant to which MFS has agreed to reduce its management fee by a specified amount if certain MFS mutual fund assets exceed thresholds agreed to by MFS and the fund's Board of Trustees. The agreement to waive at least 0.01% of the management fee will continue until modified by the fund's Board of Trustees, but such agreement will continue until at least June 30, 2023. |
DIF-SUM-062822
MFS Diversified IncomeFund
Example
This example is intended to help youcompare the cost of investing in the fund with the cost of investing in other mutual funds.
The example assumes that: you invest$10,000 in the fund for the time periods indicated and you redeem your shares at the end of the time periods (unless otherwise indicated);your investment has a 5% return each year; and the fund’s operating expenses remain the same.
Although your actual costs will likelybe higher or lower, under these assumptions your costs would be:
| | 1 YEAR | | | 3 YEARS | | | 5 YEARS | | | 10 YEARS | |
Class A Shares | | $ | 521 | | | $ | 726 | | | $ | 948 | | | $ | 1,586 | |
Class C Shares assuming1 | | | | | | | | | | | | | | | | |
redemption at end of period | | $ | 276 | | | $ | 547 | | | $ | 943 | | | $ | 1,853 | |
no redemption at end of period | | $ | 176 | | | $ | 547 | | | $ | 943 | | | $ | 1,853 | |
Class I Shares | | $ | 75 | | | $ | 236 | | | $ | 410 | | | $ | 917 | |
Class R1 Shares | | $ | 176 | | | $ | 547 | | | $ | 943 | | | $ | 2,051 | |
Class R2 Shares | | $ | 125 | | | $ | 392 | | | $ | 680 | | | $ | 1,499 | |
Class R3 Shares | | $ | 100 | | | $ | 314 | | | $ | 546 | | | $ | 1,212 | |
Class R4 Shares | | $ | 75 | | | $ | 236 | | | $ | 410 | | | $ | 917 | |
Class R6 Shares | | $ | 65 | | | $ | 207 | | | $ | 361 | | | $ | 809 | |
| 1 | Shares automatically convert to Class A shares approximately eight years after purchase; therefore, the expense examples reflect Class A share expenses after eight years. |
Portfolio Turnover
The fund pays transaction costs, suchas commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicatehigher transaction costs and may result in higher taxes when shares are held in a taxable account. These transaction costs, which arenot reflected in “Annual Fund Operating Expenses” or in the “Example,” affect the fund’s performance. Duringthe most recent fiscal year, the fund’s portfolio turnover rate was 72% of the average value of its portfolio.
Principal Investment Strategies
MFS (Massachusetts Financial ServicesCompany, the fund’s investment adviser) normally invests the fund’s assets primarily in a broad range of debt instrumentsand equity securities of U.S. and foreign issuers, including real estate-related investments and emerging market securities.
MFS allocates the fund’s assetsacross the following categories based on its interpretation of economic and money market conditions, fiscal and monetary policy and assetclass and/or security values. When MFS' assessment of the relative attractiveness of these categories is neutral, the fund's exposureto these categories is expected to be approximately:
Category | | Neutral Position | |
Investment Grade Quality Debt Instruments | | | 15 | % |
Lower Quality Debt Instruments | | | 25 | % |
U.S. Government Securities | | | 10 | % |
Emerging Market Debt Instruments | | | 15 | % |
Dividend-Paying Equity Securities | | | 20 | % |
Real Estate-Related Investments | | | 15 | % |
These allocations may vary significantlyfrom time to time.
Forthe debt instrument portion of the fund, MFS normally focuses on investing the fund's assets in investment grade quality corporate bonds,U.S. Government securities, below investment grade quality debt instruments of developed market issuers, and debt instruments of emergingmarket issuers (including below investment grade quality debt instruments of emerging market issuers).Of the fund’s investments in debt instruments, MFS may invest up to 100% of these investments in below investment grade qualitydebt instruments. MFS may purchase or sell securities for the fund on a when-issued, delayed delivery, or forward commitment basis wherepayment and delivery take place at a future settlement date, including mortgage-backed securities purchased or sold in the to be announced(TBA) market.
For the equity portion of the fund,MFS focuses on investing the fund’s assets in dividend-paying stocks of U.S. and foreign issuers. In selecting equity investmentsfor the fund, MFS is not constrained by any particular investment style. MFS may invest the fund’s assets in the stocks of companiesit believes to have above average earnings growth potential compared to other companies (growth companies), in the stocks of companiesit believes are undervalued compared to their perceived worth (value companies), or in a combination of growth and value companies. WhileMFS may invest the equity portion of the fund’s assets in securities of companies of any size, MFS primarily invests in securitiesof companies with large capitalizations.
For the real estate-related portionof the fund, MFS invests the fund’s assets in real estate investment trusts (REITs) and other companies principally engaged inthe real estate industry. MFS generally focuses the fund’s real estate-related investments in equity REITs, but may also investin mortgage REITs and other real estate-related investments. Issuers of real estate-related investments tend to have small-to-mediummarket capitalizations.
MFS normally invests the fund's assetsacross different industries, sectors, countries, and regions, but MFS may invest a significant percentage of the fund’s assetsin issuers in a single industry, sector, country, or region.
While MFS may use derivatives for anyinvestment purpose, to the extent MFS uses derivatives, MFS expects to use derivatives primarily to increase or decrease exposure toa particular market, segment of the market, or security, to increase or decrease interest rate or currency exposure, or as alternativesto direct investments. Derivatives include futures, forward contracts, options, and swaps.
MFS uses an active bottom-up investmentapproach to buying and selling investments for the fund. For the debt and real estate-related portions of the fund, investments are selectedprimarily based on fundamental analysis of individual issuers and instruments. For the equity portion of the fund, investments are selectedprimarily based on blending fundamental and quantitative research and then constructing a portfolio of equity securities while managingvarious risk factors (e.g., issuer, industry, and sector weightings, market capitalization, and volatility). Quantitative models thatsystematically evaluate issuers and instruments are used by the fund's equity securities portfolio manager and may also be consideredby the fund's other portfolio managers.
MFS may invest the fund's assets inother mutual funds advised by MFS that invest in particular investment types rather than invest directly in such investments.
Principal Risks
As with any mutual fund, the fund maynot achieve its objective and/or you could lose money on your investment in the fund. An investment in the fund is not a bank depositand is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency.
MFS Diversified IncomeFund
The principal risks of investing inthe fund are:
AllocationRisk: MFS’ assessment of the risk/return potential of asset classes and the resultingallocation among asset classes may not produce the intended results and/or can lead to an investment focus that results in the fund underperformingother funds with similar investment strategies and/or underperforming the markets in which the fund invests.
InvestmentSelection Risk: MFS' investment analysis, its development and use of quantitative models, andits selection of investments may not produce the intended results and/or can lead to an investment focus that results in the fund underperformingother funds with similar investment strategies and/or underperforming the markets in which the fund invests. The quantitative modelsused by MFS (both proprietary and third-party) may not produce the intended results for a variety of reasons, including the factors usedin the models, the weight placed on each factor in the models, changes from the market factors' historical trends, changing sources ofmarket return or market risk, and technical issues in the design, development, implementation, application, and maintenance of the models(e.g., incomplete, stale, or inaccurate data, programming or other software issues, coding errors, and technology failures).
DebtMarket Risk: Debt markets can be volatile and can decline significantly in response to, or investorperceptions of, issuer, market, economic, industry, political, regulatory, geopolitical, environmental, public health, and other conditions.These conditions can affect a single instrument, issuer, or borrower, a particular type of instrument, issuer, or borrower, a segmentof the debt markets or the debt markets generally. Certain events can have a dramatic adverse effect on debt markets and may lead toperiods of high volatility and reduced liquidity in a debt market or segment of a debt market.
InterestRate Risk: In general, the price of a debt instrument falls when interest rates rise and riseswhen interest rates fall. Interest rate risk is generally greater for instruments with longer maturities, or that do not pay currentinterest.
CreditRisk: The price of a debt instrument depends, in part, on the credit quality of the issuer,borrower, counterparty, or other entity responsible for payment, or underlying collateral or assets and the terms of the instrument.The price of a debt instrument can decline in response to changes in, or perceptions of, the financial condition of the issuer, borrower,counterparty, or other entity, or underlying collateral or assets, or changes in, or perceptions of, specific or general market, economic,industry, political, regulatory, geopolitical, environmental, public health, and other conditions.
Below investment grade quality debtinstruments (commonly referred to as “high yield securities” or “junk bonds”) can involve a substantially greaterrisk of default or can already be in default, and their values can decline significantly. Below investment grade quality debt instrumentsare regarded as having predominantly speculative characteristics. Below investment grade quality debt instruments tend to be more sensitiveto adverse news about the issuer, or the market or economy in general, than higher quality debt instruments.
ForeignRisk: Exposure to foreign markets through issuers or currencies can involve additional risksrelating to market, economic, industry, political, regulatory, geopolitical, environmental, public health, and other conditions. Thesefactors can make foreign investments, especially those tied economically to emerging markets, more volatile and less liquid than U.S.investments. In addition, foreign markets can react differently to these conditions than the U.S. market.
EmergingMarkets Risk: Investments tied economically to emerging markets, especially frontier markets,can involve additional and greater risks than the risks associated with investments in developed markets. Emerging markets can have lessdeveloped markets, greater custody and operational risk, less developedlegal, regulatory, and accounting systems, greater government involvement in the economy, greater risk of new or inconsistent governmenttreatment of or restrictions on issuers and instruments, and greater political, social, geopolitical, and economic instability than developedmarkets.
FocusRisk: Issuers in a single industry, sector, country, or region can react similarly to market,currency, political, economic, regulatory, geopolitical, environmental, public health, and other conditions, and the fund's performancewill be affected by the conditions in the industries, sectors, countries and regions to which the fund is exposed.
CurrencyRisk: The value of foreign currencies relative to the U.S. dollar fluctuates in response tomarket, economic, industry, political, regulatory, geopolitical, environmental, public health, and other conditions, and changes in currencyexchange rates impact the financial condition of companies or other issuers and may change the value in U.S. dollars of investments denominatedin foreign currencies.
Prepayment/ExtensionRisk: Instruments subject to prepayment and/or extension can reduce the potential for gain forthe instrument’s holders if the instrument is prepaid and increase the potential for loss if the maturity of the instrument isextended.
EquityMarket Risk/Company Risk: Equity markets are volatile and can decline significantly in responseto, or investor perceptions of, issuer, market, economic, industry, political, regulatory, geopolitical, environmental, public health,and other conditions. These conditions can affect a single issuer or type of security, issuers within a broad market sector, industryor geographic region, or the equity markets in general. Certain events can have a dramatic adverse effect on equity markets and may leadto periods of high volatility in an equity market or a segment of an equity market. The value of an investment held by the fund may declinedue to factors directly related to the issuer.
RealEstate-Related Investment Risk: The risks of investing in real estate-related securities includecertain risks associated with the direct ownership of real estate and the real estate industry in general. These include risks relatedto general, regional and local economic conditions; difficulties in valuing and disposing of real estate; fluctuations in interest ratesand property tax rates; shifts in zoning laws, environmental regulations and other governmental action; cash flow dependency; increasedoperating expenses; lack of availability of mortgage funds; losses due to natural disasters; overbuilding; losses due to casualty orcondemnation; changes in property values and rental rates; the management skill and creditworthiness of the REIT manager; and other factors.The securities of smaller real estate-related issuers can be more volatile and less liquid than securities of larger issuers and theirissuers can have more limited financial resources.
DerivativesRisk: Derivatives can be highly volatile and involve risks in addition to the risks of the underlyingindicator(s) on which the derivative is based. Gains or losses from derivatives can be substantially greater than the derivatives’original cost. Derivatives can involve leverage.
When-Issued,Delayed Delivery, and Forward Commitment Transaction Risk: The purchaser in a when-issued, delayeddelivery or forward commitment transaction assumes the rights and risks of ownership, including the risks of price and yield fluctuationsand the risk that the security will not be issued or delivered as anticipated. When-issued, delayed delivery, and forward commitmenttransactions can involve leverage.
MFS Diversified IncomeFund
LeveragingRisk: Leverage involves investment exposure in an amount exceeding the initial investment. Leveragecan cause increased volatility by magnifying gains or losses.
Counterpartyand Third Party Risk: Transactions involving a counterparty or third party other than the issuerof the instrument are subject to the credit risk of the counterparty or third party, and to the counterparty’s or third party’sability or willingness to perform in accordance with the terms of the transaction.
LiquidityRisk: It may be difficult to value, and it may not be possible to sell, certain investments,types of investments, and/or investments in certain segments of the market, and the fund may have to sell certain of these investmentsat prices or times that are not advantageous in order to meet redemptions or other cash needs.
LargeShareholder Risk: From time to time, shareholders of the fund (which may include institutionalinvestors, financial intermediaries, or other MFS funds) may make relatively large redemptions or purchases of fund shares. These transactionsmay cause the fund to sell securities or invest additional cash, as the case may be, at disadvantageous prices. Redemptions of a largenumber of shares also may increase transaction and other costs or have adverse tax consequences for shareholders of the fund by requiringa sale of portfolio securities. Purchases of a large number of shares may adversely affect the fund's performance to the extent thatit takes time to invest new cash and the fund maintains a larger cash position than it ordinarily would.
Performance Information
Thebar chart and performance table below are intended to provide some indication of the risks of investing in the fund by showing changesin the fund’s performance over time and how the fund’s performance over time compares with that of a broad measure of marketperformance and one or more other measures of performance for markets in which the fund may invest.
Performance information prior to June 15,2021, reflects time periods when the fund did not have an investment strategy of allocating a portion of its assets to investment gradequality debt instruments. The fund's investment strategies changed effective June 15, 2021. The fund’s past performance (beforeand after taxes) does not necessarily indicate how the fund will perform in the future. Updated performance is available online at mfs.comor by calling 1-800-225-2606.
Class ABar Chart. The bar chart does not take into account any sales charges (loads) that you may berequired to pay upon purchase or redemption of the fund’s shares. If these sales charges were included, they would reduce the returnsshown.
Thetotal return for the three-month period ended March 31, 2022, was (4.41)%. During the period(s) shown in the bar chart, thehighest quarterly return was 8.65% (for the calendar quarter ended June 30, 2020) and the lowest quarterly return was (13.45)% (forthe calendar quarter ended March 31, 2020).
Performance Table.
AverageAnnual Total Returns
(Forthe Periods Ended December 31, 2021)
Share Class | | 1 YEAR | | | 5 YEARS | | | 10 YEARS | |
Returns Before Taxes | | | | | | | | | | | | |
C Shares | | | 7.49 | % | | | 5.71 | % | | | 6.24 | % |
I Shares | | | 9.50 | % | | | 6.77 | % | | | 7.13 | % |
R1 Shares | | | 8.50 | % | | | 5.73 | % | | | 6.08 | % |
R2 Shares | | | 9.03 | % | | | 6.24 | % | | | 6.61 | % |
R3 Shares | | | 9.30 | % | | | 6.50 | % | | | 6.87 | % |
R4 Shares | | | 9.57 | % | | | 6.77 | % | | | 7.14 | % |
R6 Shares | | | 9.67 | % | | | 6.88 | % | | | 7.23 | % |
A Shares | | | 4.66 | % | | | 5.60 | % | | | 6.41 | % |
Returns After Taxes on Distributions | | | | | | | | | | | | |
A Shares | | | 3.00 | % | | | 4.23 | % | | | 4.91 | % |
Returns After Taxes on Distributions and Sale of Fund Shares | | | | | | | | | | | | |
A Shares | | | 3.15 | % | | | 3.82 | % | | | 4.48 | % |
Index Comparisons (Reflects no deduction for fees, expenses, or taxes) | | | | | | | | | | | | |
Standard & Poor's 500 Stock Index | | | 28.71 | % | | | 18.47 | % | | | 16.55 | % |
MFS Diversified Income Fund Blended Index | | | 10.65 | % | | | 6.82 | % | | | 6.77 | % |
Bloomberg U.S. Corporate High-Yield 2% Issuer Capped Index | | | 5.26 | % | | | 6.28 | % | | | 6.82 | % |
Bloomberg U.S. Credit Index | | | (1.08 | )% | | | 5.05 | % | | | 4.45 | % |
Bloomberg U.S. Government/Mortgage Index | | | (1.77 | )% | | | 2.85 | % | | | 2.21 | % |
JPMorgan Emerging Markets Bond Index Global | | | (1.51 | )% | | | 4.47 | % | | | 4.95 | % |
MSCI All Country World High Dividend Yield Index (net div) | | | 14.28 | % | | | 9.72 | % | | | 8.53 | % |
MSCI US REIT Index (net div) | | | 41.71 | % | | | 9.46 | % | | | 9.99 | % |
As of December 31, 2021, the MFSDiversified Income Fund Blended Index (the Blended Index) consisted of the following indices and weightings: 15% MSCI US REIT Index;15% JPMorgan Emerging Markets Bond Index Global; 10% Bloomberg U.S. Government/Mortgage Index; 25% Bloomberg U.S. Corporate High-Yield2% Issuer Capped Index; 20% MSCI All Country World (ACWI) High Dividend Yield Index; and 15% Bloomberg U.S. Credit Index. The componentsand weightings of the Blended Index may have differed during the periods, and may differ in the future.
After-taxreturns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of stateand local taxes. Your actual after-tax returns will depend on your own tax situation, and may differ from those shown. The after-taxreturns shown are not relevant to investors who hold their shares through tax-advantaged arrangements, such as 401(k) plans or individualretirement accounts. The after-tax returns are shown for only one of the fund’s classes of shares, and after-tax returns for thefund’s other classes of shares will vary from the
MFS Diversified IncomeFund
returns shown.
Investment Adviser
MFS serves as the investment adviserfor the fund.
Portfolio Manager(s)
Portfolio Manager | | Since | | Title |
Robert Almeida | | 2018 | | Investment Officer of MFS |
Neeraj Arora | | 2019 | | Investment Officer of MFS |
David Cole | | 2006 | | Investment Officer of MFS |
Rick Gable | | 2006 | | Investment Officer of MFS |
Alexander Mackey | | 2021 | | Investment Officer of MFS |
Henry Peabody | | 2021 | | Investment Officer of MFS |
Matt Ryan | | 2006 | | Investment Officer of MFS |
Jonathan Sage | | 2006 | | Investment Officer of MFS |
Geoffrey Schechter | | 2006 | | Investment Officer of MFS |
Michael Skatrud | | 2018 | | Investment Officer of MFS |
Purchase and Sale of Fund Shares
You may purchase and redeem shares ofthe fund each day the New York Stock Exchange (the NYSE) is open for trading. You may purchase or redeem shares either by having yourfinancial intermediary process your purchase or redemption, or through MFS Service Center, Inc. (MFSC) by overnight mail (MFSC,Suite 219341, 430 W 7th Street, Kansas City, MO 64105-1407), by mail ([Fund Name], P.O. Box 219341, Kansas City,MO 64121-9341), by telephone (1-800-225-2606), or via the Internet at mfs.com (MFS Access).
The fund’s initial and subsequentinvestment minimums generally are as follows:
Class | | InitialMinimum | | SubsequentMinimum |
Class A, Class C | | None – automatic investment plans and certain asset-based fee programs $25 – employer-sponsored retirement plans $250 – Traditional and Roth IRAs $1,000 – other accounts | | $50 – by check and non-systematic written exchange request, and via MFSC telephone representatives None – other purchases |
Class I, Class R1, Class R2, Class R3, Class R4, Class R6 | | None | | None |
Taxes
If your shares are held in a taxableaccount, the fund’s distributions will be taxed to you as ordinary income and/or capital gains. If your shares are held in a tax-advantagedaccount, you will generally be taxed only upon withdrawals from the account.
Payments to Broker/Dealers and OtherFinancial Intermediaries
If you purchase shares of the fund througha broker/dealer or other financial intermediary (such as a bank), the fund, MFS, and/or MFS’ affiliates may pay the financial intermediaryfor the sale of shares of the fund and/or the servicing of shareholder accounts. These payments may create a conflict of interest byinfluencing your broker/dealer or other financial intermediary and your salesperson to recommend the fund over another investment. Askyour financial intermediary or visit your financial intermediary’s website for more information.