YOUR RETIREMENT: TBD Designed to pursue your risk and return goals The views expressed in this presentation are those of the presenter. These views should not be relied upon as investment advice, as securities recommendations, or as an indication of trading intent on behalf of any other MFS investment product. MFS Fund Distributors, Inc. may have sponsored this seminar by paying for all or a portion of the associated costs. MFS Fund Distributors, Inc., Boston, MA

AGENDA 2 Disciplined Finance Traditional Finance Behavioral Finance

3 Disciplined Finance Traditional Finance Behavioral Finance AGENDA

What have we learned (or been taught)? Buy low, sell high Pay yourself first Diversify, diversify, diversify Things revert to the mean Balance risk and reward TRADITIONAL FINANCE 4

Summary – portfolio diversification can help manage risk* Risk –Systematic or “market” risk –Unsystematic or “security” risk Standard deviation Efficient frontier MODERN PORTFOLIO THEORY 5 * Diversification does not guarantee a profit or protect against loss.

EFFICIENT FRONTIER 6 Standard Deviation (%) Annualized Return (%) 100% Stocks 100% Bonds 50/50 Stocks are represented by the Standard & Poor’s 500 Stock Index which measures the broad US stock market; bonds by the Barclays US Aggregate Bond Index which measures the US bond market. It is not possible to invest in an index. Hypothetical examples are for illustrative purposes only and are not intended to represent the future performance of any MFS product. Source: SPAR Hypothetical from 1/1/83 to 12/31/14

AGENDA 7 Disciplined Finance Traditional Finance Behavioral Finance

Behaviors Anchoring Loss aversion Biased expectations or narrow framing Asset segregation Herding BEHAVIORAL FINANCE 8

9 Anchoring

BEHAVIORAL FINANCE 10 Loss aversion

yards BEHAVIORAL FINANCE Narrow framing

BEHAVIORAL FINANCE 12 Asset segregation

BEHAVIORAL FINANCE 13 represents Morningstar ® rankings distribution Source: Strategic Insight Simfund/MF and Morningstar ® Past performance is no guarantee of future results ©2014 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Herding – Past performance tends to hold/attract assets 12-month new net industry flows in $billions as of 12/14

BEHAVIORAL FINANCE 14 12/31/12 Star rating US Equity Funds* Average 2013 return (%)Average 2014 return (%) 5 stars stars stars stars star Not rated * Source: Strategic Insight Simfund/MF. Herding – Past performance ©2015 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

AGENDA 15 Disciplined Finance Traditional Finance Behavioral Finance

Things to consider… Investment goals Risk tolerance Diversification Quarterly, Semi-Annual, Annual Portfolio Reviews DISCIPLINED FINANCE 16

TAKE A DISCIPLINED APPROACH: ADR 17 A D R 1. Allocate assets across the major asset classes 2. Diversify within each asset class 3. Rebalance periodically to ensure that your plan remains in sync Keep in mind that no investment strategy, including asset allocation, diversification, or rebalancing, can guarantee a profit or protect against a loss. Also, all investments, including mutual funds, carry a certain amount of risk including the possible loss of the principal amount invested.

THE IMPORTANCE OF ALLOCATING % asset allocation policy Only 6.4% of the variability of performance was driven by security selection and timing of investment. 93.6% of the variability of performance was driven by an asset allocation policy. Source: Study by Gary P. Brinson, L. Randolph Hood, and Gilbert L. Beebower, “Determinants of Portfolio Performance,” Financial Analysts Journal, January/February The study analyzed data from 91 large corporate pension plans with assets of at least $100 million over a 10-year period beginning in 1974 and concluded that asset allocation policy explained, on average, 93.6% of the variation in total plan return.

REBALANCE WHEN NECESSARY 19 Source: MFS research. 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 Standard & Poor’s 500 Stock Index, which measures the broad U.S. stock market. Bonds are represented by the 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.

A TALE OF THREE INVESTORS 20 INVESTOR #1 — Each year she invested in the previous year’s best-performing market segment. INVESTOR #2 — Each year she invested in the previous year’s worst-performing market segment, hoping for a rebound the next year. INVESTOR #3 — She remained equally invested in eight different asset classes each year. She also rebalanced her portfolio’s assets each quarter so that they stayed equally distributed among the asset classes. Practiced ADR $46,060 Went for the rebound $38,087 Chased Performance $40,827 Each hypothetical investor followed a different strategy for investing $1,000 each year over a 20-year period ($20,000 total from 1/1/95 through 12/31/14) Hypothetical examples are for illustrative purposes only and are not intended to represent the future performance of any MFS product. For purposes of this comparison, we have divided the overall market into the following eight indices — the Barclays U.S. Aggregate Bond Index, the MSCI EAFE Index, the Russell 1000 Growth Index, the Russell 1000 Value Index, the Russell 2500 Index, the FTSE NAREIT All REITs Total Return Index, the JPMorgan Global Government Bond Index (unhedged), and the Bloomberg Commodity 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. The use of a systematic investing program does not guarantee a profit or protect against a loss in declining markets. You should consider your financial ability to continue to invest through periods of low prices. Past performance is no guarantee of future results.

COMMON MISSTEPS 21

PARTING THOUGHTS 22 Work with your advisor to: –Establish your goals –Determine your risk tolerance –Allocate your investments Review your portfolio If markets get volatile…Turn off the TV

SUMMARY 23 Disciplined Finance ADR-try it, you may like it Traditional Finance The principles of investing Behavioral Finance Think rationally before acting

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