Massachusetts Financial Services Company, d/b/a MFS Investment Management (“MFS”), is an
investment adviser registered with the SEC. MFS is also the parent company of other companies that
manage investments. In this Brochure, we refer to MFS and these other direct and indirect subsidiaries
collectively as the “MFS Global Group.” MFS and its predecessor organizations have a history of money
management dating from 1924 and the founding of the first U.S. mutual fund. MFS is an indirect,
majority-owned subsidiary of Sun Life Financial Inc. (“SLF”), a diversified financial services company. As
of December 31, 2023, MFS managed $432,205,800,996 in discretionary client assets and
$22,119,513,668 in non-discretionary client assets, which includes assets managed for clients of other
members of the MFS Global Group. The MFS Global Group managed $582,844,492,254 as of December
31, 2023. Assets of non-discretionary model-delivery programs are not included in these assets under
management.
All discussions of MFS’ practices in this Brochure are qualified in their entirety with respect to each
account by the applicable investment advisory agreement or offering and organizational materials (such
offering and organizational materials are collectively referred to as the “Offering Documents”) governing
such account. This includes, without limitation, all practices pertaining to an account’s investments,
strategies used in managing the account, investment risks, fees and other costs associated with an
investment in the account.
MFS provides investment advisory and sub-advisory services to a range of institutional clients and
pooled investment vehicles. MFS’ institutional clients include pension and profit-sharing plans,
charitable organizations, insurance companies, corporations, and sovereign wealth funds. In addition,
MFS provides investment advisory services to a variety of pooled investment vehicles, including: (i) a
family of investment companies registered under the Investment Company Act of 1940, as amended
(the “1940 Act”) (the “MFS Funds”); (ii) certain funds that are not registered as investment companies
under the 1940 Act pursuant to the exemption contained in Section 3(c)(7) of the 1940 Act (the “MFS
Private Funds”); (iii) certain Undertakings for the Collective Investment in Transferable Securities (also
known as UCITS funds) (the “MFS UCITS Funds”). MFS also sub-advises investment companies
registered under the 1940 Act for other registered investment advisers. Finally, MFS provides portfolio
management, research and/or trading services for non-U.S. accounts for which a member of the MFS
Global Group acts as investment adviser or investment manager.
The terms “account” or “client” are used herein to refer to all of MFS’ clients, including all separate
accounts and pooled investment vehicles; the terms “Institutional Account” or “Institutional Client” are
used herein to refer to all of MFS’ clients (or such clients’ accounts) other than the MFS Global Funds (as
defined in Item 5). Some accounts may be comprised of multiple sleeves managed in
separate
investment strategies or asset classes, and the term “account” may refer to the overall account or a
sleeve as the context warrants. For information on the types of investment strategies MFS manages,
please see Item 8, Methods of Analysis, Investment Strategies and Risk of Loss.
In some cases, clients access MFS’ investment advisory services via an outsourced chief investment
officer arrangement (also referred to as a discretionary consulting service) (“OCIO provider”).
Depending on the specific features of the OCIO arrangement, the OCIO provider may be the
decisionmaker as to whether to engage or terminate MFS as investment adviser to the client and for
which investment strategy or investment vehicle. MFS’ client servicing is typically primarily provided to
or through the OCIO provider rather than directly to the client.
Some accounts are subject to client-imposed restrictions on investing in certain securities or derivatives,
or types of securities or derivatives. For more information on how imposing such restrictions might
affect the management of your account, please see Item 16, Investment Discretion.
MFS provides non-discretionary advice to certain state authorities responsible for overseeing the state’s
qualified tuition program under Section 529 of the Internal Revenue Code (a “529 Plan”). This non-
discretionary advice includes recommendations about asset allocation models and static investment
options for 529 Plan investors. As agreed to with each state authority, MFS currently only uses MFS
Funds in those recommendations. MFS is not compensated for providing this advice; however, it earns
revenue from the investments in the MFS Funds that result from the advice. MFS is incentivized to
recommend MFS Funds that charge higher advisory fees, because MFS will receive higher revenues from
investments in those MFS Funds. These conflicts are mitigated by the participation of an independent
fiduciary for the 529 Plan, such as an investment consultant or third-party investment adviser.
On a non-discretionary basis, MFS’ subsidiary, MFS Institutional Advisors, Inc. (“MFSI”), reviews and
provides asset allocation and portfolio structure guidance to certain Institutional Clients, including
pension plans, sovereign wealth funds, endowments and foundations. MFSI may also provide similar
asset allocation guidance to financial intermediaries for use with the financial intermediary’s own clients
or clients it has in common with MFS. To the extent MFSI’s asset allocation guidance could be
implemented using investment products or advisory services provided by MFS, and the recipient of the
guidance invests in such investment products or advisory services, MFS would earn additional revenues
because MFS receives revenue from its investment products or advisory services. The fees charged by
MFS for these investment products or advisory services may be higher than fees charged by third
parties. The Institutional Client or financial intermediary has the ultimate discretion whether to use MFS
investment products or advisory services.