BUILD WITH PRECISIONPursue your risk and return goals, Presenter name Title Firm

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  • 1.BUILD WITH PRECISIONPursue your risk and return goals Presenter name Title Firm MFS Fund Distributors, Inc., Boston, MA mfsp-aa1-pres 28580.13 3/19 Keep in mind that all investments carry a certain amount of risk including the possible loss of the principal amount invested. Past performance is no guarantee of future results. No forecasts can be guaranteed. It is not possible to invest directly in an index. MFS Fund Distributors, Inc. may have sponsored this seminar by paying for all or a portion of the associated costs. Such sponsorship may create a conflict of interest to the extent that the broker dealer's financial advisor considers the sponsorship when rendering advice to customers.
  • 2.SURVEYS REVEAL INVESTORS IN NEED The % of investors that indicate their reliance on their primary advisor will increase over the next few years.1 Overall 55% Gen Y 68% Gen X 52 Boomers 53 Silent 45 1 Source: MFS, through Research Now, an independent research firm, sponsored an online survey of 1,500 individual investors. MFS was not identified as the sponsor of the survey, which was fielded in October 2018. To qualify, respondents had to have a household income of at least $50,000, be invested in mutual funds, and make or share in financial decisions for their household. Segments were defined as follows: Gen Y (age 23 – 37), Gen X (38 – 53), Boomer (54 – 72), Silent (73 – 90). 2
  • 3.TWO COMMON, COSTLY MISTAKES Loss aversion 3
  • 4.TWO COMMON, COSTLY MISTAKES Regret aversion 4
  • 5.TAKE A DISCIPLINED 3-STEP APPROACH ADR No investment strategy, including ADR, can guarantee a profit or protect against a loss. 1. Allocate 2. Diversify 3. Rebalance 5
  • 6.Only 6.4%of the variability of performance was driven by security selection and timing of investment. FIRST, ALLOCATE 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 1995. 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. 6
  • 7.NEXT, DIVERSIFY  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. 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 fund, including performance, please visit mfs.com. 7 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 U.S. bond market. 3 JPMorgan Global Government Bond Index (Unhedged) measures government bond markets around the world. 4 Russell 1000® Value Index measures large-cap U.S. value stocks. 5 Bloomberg Commodity Index is composed of futures contracts on physical commodities. 6 MSCI EAFE Index (net div) measures the non‑U.S. stock market. 7 Russell 1000® Growth Index measures large‑cap U.S. growth stocks. 8 Russell 2500 Index measures small- and mid‑cap U.S. stocks. 9 FTSE NAREIT All REITs Total Return Index tracks the performance of commercial real estate across the U.S. economy. It is not possible to invest directly in an index. Standard deviation reflects a portfolio’s total return volatility, which is based on a minimum of 36 monthly returns. The larger the portfolio’s standard deviation, the greater the portfolio’s volatility.
  • 8.AND REBALANCE WHEN NECESSARY Source: 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 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. 8
  • 9.TALE OF THREE INVESTORS For purposes of this comparison, we have divided the overall market into the following eight indices — the Bloomberg 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. Hypothetical examples are for illustrative purposes only and are not intended to represent the future performance of any MFS product. 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 not guarantee of future results. INVESTOR #1 — Each year she invested in the previous year’s best-performing market segment. Each hypothetical investor followed a different strategy for investing $1,000 each year over a 20-year period ($20,000 total from 1/1/99 through 12/31/18) $34,051 Chased Performance 9
  • 10.TALE OF THREE INVESTORS For purposes of this comparison, we have divided the overall market into the following eight indices — the Bloomberg 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. Hypothetical examples are for illustrative purposes only and are not intended to represent the future performance of any MFS product. 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 not guarantee of future results. 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. $34,692 Went for the rebound Chased Performance $34,051 10 Each hypothetical investor followed a different strategy for investing $1,000 each year over a 20-year period ($20,000 total from 1/1/99 through 12/31/18)
  • 11.TALE OF THREE INVESTORS 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* $37,737 Chased Performance $34,051 11 $34,692 Went for the rebound Each hypothetical investor followed a different strategy for investing $1,000 each year over a 20-year period ($20,000 total from 1/1/99 through 12/31/18) For purposes of this comparison, we have divided the overall market into the following eight indices — the Bloomberg 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. Hypothetical examples are for illustrative purposes only and are not intended to represent the future performance of any MFS product. 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 not guarantee of future results.
  • 12.SAMPLE INVESTOR QUESTIONNAIRE:DETERMINE YOUR RISK/RETURN PROFILE 12
  • 13.BUILD WITH PRECISIONPursue your risk and return goals Thank you