mfs® value fund

NOT FDIC INSURED MAY LOSE VALUE NOT A DEPOSIT

Before investing, consider the fund's investment objectives, risks, charges, and expenses. For a prospectus, or summary prospectus, containing this and other information,

contact MFS or view online at mfs.com. Please read it carefully.©2022 MFS Fund Distributors, Inc., 111 Huntington Avenue, Boston, MA 02199.

FOR DEALER AND INSTITUTIONAL USE ONLY. Not to be shown, quoted, or distributed to the public.

PRPEQ-EIF-31-Dec-21

MFS® Value Fund(Class A Shares)

Fourth quarter 2021 investment report

34135.6

Table of Contents

FOR DEALER AND INSTITUTIONAL USE ONLY. - MFS Value FundPRPEQ-EIF-31-Dec-21

Performance and attribution results are for the fund or share class depicted and do not reflect the impact of your contributions and withdrawals. Your personal performance results may

differ.

Portfolio characteristics are based on equivalent exposure, which measures how a portfolio's value would change due to price changes in an asset held either directly or, in the case of a

derivative contract, indirectly. The market value of the holding may differ.

PageContents

Fund Risks 1

Disciplined Investment Approach 2

Market Overview 3

Executive Summary 4

Performance 5

Attribution 6

Significant Transactions 10

Portfolio Positioning 11

Characteristics 12

Portfolio Outlook 14

Portfolio Holdings 19

Additional Disclosures 21

0

Fund Risks


The fund may not achieve its objective and/or you could lose money on your investment in the fund.

Stock: Stock markets and investments in individual stocks are volatile and can decline significantly in response to or investor perception of, issuer, market, economic,

industry, political, regulatory, geopolitical, environmental, public health, and other conditions.

Value: The portfolio's investments can continue to be undervalued for long periods of time, not realize their expected value, and be more volatile than the stock market in

general.

Please see the prospectus for further information on these and other risk considerations.

1

1

Investment Objective Seeks capitalappreciation

GoalsOutperform the Russell 1000® Value Index over full marketcycles

Achieve a competitive ranking in relevant peer universes over full market cycles

Philosophy

The tenets of our investment philosophy are based upon the followingbeliefs:

Durability of some businesses and the duration of high returns are oftenunderappreciated

Applying a disciplined valuation framework in all environments can be a critical source ofdownside risk mitigation and alphageneration

Owning durable businesses with strong returns bought at attractive valuations with along-term horizon can allow for compounding over time

Strategy

We leverage our bottom-up, global research platform to try to identify attractively valued,high quality companies that over the long term:

• Have business durability

• Exhibit strong financial characteristics

• Are managed in a sustainable way and are effectively governed

Our valuation approach is flexible, but places a strong emphasis on cash fl ow and returns-based methodologies

We focus on downside risk management at the individual securitylevel


Disciplined Investment Approach

2

2


Market Overview

The US market, as measured by the S&P 500 Index, ended strongly higher

in Q4, finishing off a good year for US equities. These returns came

despite two large challenges facing the market: the new Omicron variant

of COVID-19 and rising inflation.

Economic growth in the United States moved slightly higher during Q3

2021, with a GDP estimate of 2.3%. This growth was lower than in Q2 as

consumer spending slowed amid the emergence of the Delta variant of

COVID-19 in late summer. However, growth is largely expected to

increase from the current levels in Q4.

Market review as of 31-Dec-21

The US Federal Reserve acknowledged that inflation was no longer

"transitory" and announced plans to end its bond-buying program earlier

than expected. They also signaled that interest rate hikes are likely in

2022.

For the quarter, growth outperformed value in the large-cap space, but

value outperformed growth in the mid- and small-cap spaces. This was

also true for the trailing 12-month period. During Q4, the real estate,

technology and materials sectors performed best and communications

services, financials and energy were the worst-performing.

Style performance (%) (USD) as of 31-Dec-21

4Q 2021

11.6 11.0

8.5 7.8

4.42.8 2.7

0.0

27.628.7 28.3

25.2

28.3

12.711.3

2.8

Ru

sse

ll 1

00

0

Gro

wth

S&

P 5

00

Ru

sse

ll

Mid

cap

Va

lue

Ru

sse

ll 1

00

0

Va

lue

Ru

sse

ll 2

00

0

Va

lue

Ru

sse

ll

Mid

cap

G

row

th

MS

CI E

AF

E -

N

et

Re

turn

Ru

sse

ll 2

00

0

Gro

wth

1 Year

Source for benchmark performance SPAR, FactSet Research Systems Inc. All indices

represent total return unless otherwise noted.

Sector performance (%) (USD) as of 31-Dec-21

4Q 2021

16.413.3 13.2 11.6 11.1

9.37.8 7.3 6.8

4.8

-5.3

42.7

25.2

17.7

24.4

16.9

27.1

55.7

20.517.3

35.9

1.1

Rea

l Est

ate

Mat

eria

ls

Util

ities

Hea

lth C

are

Co

nsu

mer

Sta

ple

s

Co

nsu

mer

Dis

cret

ion

ary

En

erg

y

Ind

ust

rial

s

Info

rmat

ion

Te

chn

olo

gy

Fin

anci

als

Co

mm

un

icat

ion

Serv

ices

1 Year

Source: FactSet. Sector performance based on MSCI sector classification. The analysisof Russell 1000® Value Index constituents are broken out by MSCI defined sectors.

3

3

Executive Summary


Sector weights (%) as of 31-Dec-21 Portfolio Benchmark^^

Top overweights

Industrials 18.3 11.5

Financials 27.4 20.7

Utilities 6.2 5.1

Top underweights

Real Estate 0.5 5.1

Communication Services 2.9 7.3

Consumer Discretionary 2.5 5.8

Russell 1000® Value Index^^

The Global Industry Classification Standard (GICS®) was developed by

and/or is the exclusive property of MSCI, Inc. and S&P Global Market

Intelligence Inc. ("S&P Global Market Intelligence"). GICS is a service

mark of MSCI and S&P Global Market Intelligence and has been licensed

for use by MFS. MFS has applied its own internal sector/industry

classification methodology for equity securities and non-equity securities

that are unclassified by GICS.

Performance results (%) A shares at NAV (USD) as of 31-Dec-21

Portfolio Benchmark^

13.2912.18

18.93

25.08

8.48

12.9711.16

17.64

25.16

7.77

10 year 5 year 3 year 1 year 4Q 202110 year 5 year 3 year 1 year 4Q 2021

Performance data shown represent past performance and are no guarantee of future results.

Investment return and principal value fluctuate so your shares, when sold,may beworthmore

or less than the original cost; current performance may be lower or higher than quoted. For

most recent month-end performance, please visitmfs.com.

Performance results reflect any applicable expense subsidies and waivers in effect during the

periods shown. Without such subsidies and waivers the fund's performance results would be less

favorable. All results assume the reinvestment of dividends and capital gains.

Results would have been less favorable had the maximum 5.75% sales charge been included.

Shares are available without a sales charge to eligible investors.

Source for benchmark performance SPAR, FactSet Research Systems Inc.

For periods of less than one-year returns are not annualized.

Russell 1000® Value Index^

The MFS Value Fund outperformed the Russell 1000® Value Index in thefourth quarter of 2021.

DetractorsContributors

• Industrials – Stock selection

• Communication Services –Underweight positionIndividual stocks:•

Accenture Plc-

Lowe's Cos Inc-

Sherwin Williams Co The (Eq)-

• Financials – Stock selection andan overweight position

• Real Estate – UnderweightpositionIndividual stocks:•

Medtronic Inc-

UnitedHealth Group Inc (notheld)

-

Comcast Corp-

4

4

Performance Results


Performance results (%) A shares (USD) as of 31-Dec-21

PeriodExcess return NAV vs

benchmark (%)Benchmark^ (%)At NAV (%)

With maximum

sales charge (%)

1Q 2021 -2.6711.268.582.34

2Q 2021 0.365.215.57-0.50

3Q 2021 1.37-0.780.59-5.20

4Q 2021 0.717.778.482.24

2017 3.7813.6617.4510.70

2018 -1.81-8.27-10.07-15.24

2019 3.1926.5429.7422.28

2020 0.872.803.66-2.30

2021 -0.0825.1625.0817.89

10 year 0.3212.9713.2912.62

5 year 1.0211.1612.1810.86

3 year 1.2917.6418.9316.60

1 year -0.0825.1625.0817.89

Performance data shown represent past performance and are no guarantee of future results. Investment return and principal value fluctuate so your shares, when sold,

may beworthmore or less than the original cost; current performancemay be lower or higher than quoted. Formost recentmonth-end performance, please visit mfs.com.

Performance results reflect any applicable expense subsidies and waivers in effect during the periods shown. Without such subsidies and waivers the fund's performance results

would be less favorable. All results assume the reinvestment of dividends and capital gains.

Source for benchmark performance SPAR, FactSet Research Systems Inc.

For periods of less than one-year returns are not annualized.


5

5


Performance Drivers - Sectors

Relative

contribution

(%)

Relative to Russell 1000® Value Index (USD) -

fourth quarter 2021

Currency

effect (%)

Stock

selection (%)

Sector

allocation (%)

Benchmark

returns (%)

Portfolio

returns (%)

Average

relative

weighting (%)

+ + =21

Contributors Industrials 0.9–1.0-0.07.312.66.3

Communication Services 0.5–-0.10.7-5.3-9.9-4.9

Materials 0.3–0.30.013.321.30.4

Consumer Discretionary 0.3–0.3-0.19.323.4-3.4

Information Technology 0.2–0.20.06.88.5-1.0

Energy 0.1–0.10.07.811.8-2.8

Consumer Staples 0.10.10.0-0.011.112.6-0.2

Detractors Financials -0.6–-0.4-0.24.83.66.8

Real Estate -0.3–0.0-0.416.426.8-4.5

Health Care -0.30.0-0.30.011.69.80.8

Utilities -0.2–-0.20.113.29.71.1

Cash -0.1––-0.1–0.01.3

Total 0.90.10.8-0.07.88.6

Sector allocation is calculated based upon each security's price in local currency.1

Stock selection is calculated based upon each security's price in local currency and included interaction effect. Interaction effect is the portion of the portfolio's relative

performance attributable to combining allocation decisions with stock selection decisions. This effect measures the relative strength of the manager's convictions. The

interaction effect is the weight differential times the return differential.

2

Attribution results are generated by the FactSet application utilizing a methodology that is widely accepted in the investment industry. Results are based upon daily holdings

using a buy-and-hold methodology to generate individual security returns and do not include fees or expenses. As such, attribution results are essentially estimates and do not

aggregate to the total return of the portfolio, which can be found elsewhere in this presentation. To obtain the contribution calculation methodology and a complete list of every

holding’s contribution to the overall portfolio’s performance during the measurement period, please email [email protected].

The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and S&P Global Market Intelligence Inc. ("S&P Global Market

Intelligence"). GICS is a service mark of MSCI and S&P Global Market Intelligence and has been licensed for use by MFS. MFS has applied its own internal sector/industry

classification methodology for equity securities and non-equity securities that are unclassified by GICS.

6

6


Performance Drivers - Stocks

Portfolio Benchmark Portfolio¹ Benchmark

Average Weighting (%) Returns (%)

Relative to Russell 1000® Value Index (USD) - fourth quarter 2021Relative

contribution (%)

Contributors Accenture Plc 2.8 0.2 30.0 30.0 0.5

Lowe's Cos Inc 1.7 – 27.9 – 0.3

Union Pacific Corp 1.7 0.3 29.2 29.2 0.3

Walt Disney Co/The – 1.4 – -8.4 0.2

Sherwin Williams Co The (Eq) 1.3 – 26.1 – 0.2

Detractors Medtronic Inc 2.2 0.8 -17.0 -17.0 -0.4

UnitedHealth Group Inc – 1.9 – 28.9 -0.4

Comcast Corp 2.8 1.2 -9.6 -9.6 -0.3

Citigroup Inc 1.8 0.7 -13.3 -13.3 -0.3

JPMorgan Chase & Co 4.4 2.4 -2.7 -2.7 -0.2

Represents performance for the time period stock was held in portfolio.1

Attribution results are generated by the FactSet application utilizing a methodology that is widely accepted in the investment industry. Results are based upon daily holdings using

a buy-and-hold methodology to generate individual security returns and do not include fees or expenses. As such, attribution results are essentially estimates and do not

aggregate to the total return of the portfolio, which can be found elsewhere in this presentation. To obtain the contribution calculation methodology and a complete list of every

holding’s contribution to the overall portfolio’s performance during the measurement period, please email [email protected].

7

7


Significant Impacts on Performance - Contributors

Relative

contribution (%)Relative to Russell 1000® Value Index (USD) - fourth quarter 2021

Accenture Plc An overweight position in IT servicing firm Accenture (United States) benefited relative performance. The firm's stock price roseafter the company reported solid fourth-quarter earnings results as forward sales guidance came in well ahead of consensusexpectations. The company also saw strong customer demand in the fourth quarter, which further supported the stock.

0.5

Lowe's Cos Inc The portfolio's holdings of home improvement retailer Lowe's Companies (United States) benefited relative returns. The stockprice rose as the company posted earnings per share results above consensus estimates due to increased consumer spending onhome improvement projects.

0.3

Union Pacific Corp The portfolio's overweight position in railroad and freight transportation services provider Union Pacific (United States) helpedrelative performance. Despite slightly lower volumes amid supply chain issues and weather challenges, the stock price benefitedfrom faster-than-anticipated initiatives that are expected to yield a more profitable and reliable network.

0.3

8

8


Significant Impacts on Performance - Detractors

Relative

contribution (%)Relative to Russell 1000® Value Index (USD) - fourth quarter 2021

Medtronic Inc The portfolio's overweight position in medical device maker Medtronic (United States) held back relative performance as thecompany reported weaker revenue led by impacts from COVID-19 that considerably affected its Cardiovascular and NeuroSciencesegments. As a result, the company reduced its organic growth guidance, which further pressured the stock price.

-0.4

UnitedHealth Group

Inc

Not owning shares of health insurance and Medicare/Medicaid provider UnitedHealth Group (United States) held back relativereturns. The stock price advanced as the company reported earnings per share results that were driven by higher-than-expectedpremiums in its UnitedHealthcare segment as growth in Medicaid membership exceeded market expectations.

-0.4

Comcast Corp The portfolio's overweight position in cable services provider Comcast (United States) hindered relative returns. Despite havingreported solid third-quarter earnings results that saw strong profitability across all segments, the company's stock price declinedas management guided to lower subscriber growth.

-0.3

9

9


Significant Transactions

Sector Transaction type Trade (%)From 01-Oct-21 to 31-Dec-21Ending

weight (%)

Purchases Communication ServicesCHARTER COMMUNICATIONS INC New position 0.3 0.3

Consumer StaplesPEPSICO INC Add 0.3 1.1

MaterialsDUPONT DE NEMOURS INC Add 0.3 1.0

Health CareMERCK & CO INC Add 0.2 1.4

FinancialsKKR & CO INC Add 0.2 0.6

Sales EnergyCHEVRON CORP Eliminate position -0.6 –

Information TechnologyACCENTURE PLC Trim -0.5 2.9

Consumer StaplesJ M SMUCKER CO/THE Eliminate position -0.2 –

Consumer StaplesPHILIP MORRIS INTERNATIONAL INC Trim -0.1 0.2

FinancialsT ROWE PRICE GROUP INC Eliminate position -0.1 –




10

10


Sector Weights

Portfolio (%) Benchmark^ (%)As of 31-Dec-21Underweight/

overweight (%)Top holdings

Honeywell International Inc, Northrop GrummanCorp, Union Pacific Corp

Industrials 18.3 11.5 6.8

JPMorgan Chase & Co, Aon PLC, Marsh &McLennan Cos Inc

Financials 27.4 20.7 6.7

Duke Energy Corp, Southern Co, DominionEnergy Inc

Utilities 6.2 5.1 1.1

Johnson & Johnson, Thermo Fisher Scientific Inc,Pfizer Inc

Health Care 18.7 18.0 0.7

PPG Industries Inc, Sherwin-Williams Co, DuPontde Nemours Inc

Materials 4.4 3.8 0.6

Nestle SA, Diageo PLC, PepsiCo IncConsumer Staples 7.0 7.4 -0.4

Accenture PLC, Texas Instruments IncInformation Technology 8.9 10.2 -1.3

ConocoPhillipsEnergy 2.0 5.1 -3.1

Lowe's Cos IncConsumer Discretionary 2.5 5.8 -3.3

Comcast CorpCommunication Services 2.9 7.3 -4.4

Public Storage REITReal Estate 0.5 5.1 -4.6


1.1% Cash & cash equivalents




11

11


Characteristics

As of 31-Dec-21 Benchmark^Portfolio

Fundamentals - weighted average

18.0x 16.9xPrice/earnings (12 months forward)

3.3x 2.6xPrice/book

14.3% 15.3%IBES long-term EPS growth1

22.4% 15.3%Return on equity (3-year average)

Market capitalization

149.4 bn 167.1 bnMarket capitalization (USD)2

Diversification

27% 18%Top ten holdings

75 853Number of holdings

Turnover

8% –Trailing 1 year turnover3

ESG

265.14 232.02Carbon Intensity (Scope 1 and Scope 2)4

Risk profile (current)

74% –Active share

Risk/reward (10 year)

Correlation (monthly) 0.98 –

Beta 0.95 –

Standard deviation 13.37% 13.82%


Past performance is no guarantee of future results. No forecasts can be

guaranteed.

Source: FactSet

Weighted average.

US Turnover Methodology: (Lesser of Purchase or Sales)/Average MonthEnd Market ValueSource: TruCost; TruCost data coverage is at least 70% at portfolio level.The portfolio's weighted average Carbon Intensity is displayed. Eachcompany’s Carbon Intensity is calculated as its carbon dioxide equivalents(CO 2 e) from Scope 1 and Scope 2 emissions divided by its revenue(tonnes of CO 2 e / $1M). Scope 1 emissions includes greenhouse gas(GHG) generated from burning fossil fuels and production processeswhich are directly owned or controlled by the company; and Scope 2emissions includes consumption of purchased electricity, heat or steamby the company. The calculations include the six GHGs covered by theKyoto Protocol on climate change and are converted into tonnes of CO 2 eon the basis of their global warming potentials. The lower the score, thelower the company’s Carbon Intensity.

Source: FactSet1

Weighted average.2

US Turnover Methodology: (Lesser of Purchase or Sales)/Average MonthEnd Market Value

3

Source: TruCost; TruCost data coverage is at least 70% at portfolio level.The portfolio's weighted average Carbon Intensity is displayed. Eachcompany’s Carbon Intensity is calculated as its carbon dioxide equivalents(CO₂e) from Scope 1 and Scope 2 emissions divided by its revenue (tonnes

of CO₂e / $1M). Scope 1 emissions includes greenhouse gas (GHG)

generated from burning fossil fuels and production processes which aredirectly owned or controlled by the company; and Scope 2 emissionsincludes consumption of purchased electricity, heat or steam by thecompany. The calculations include the six GHGs covered by the KyotoProtocol on climate change and are converted into tonnes of CO₂e on the

basis of their global warming potentials. The lower the score, the lowerthe company’s Carbon Intensity.

4

12

12


Characteristics

Benchmark^ (%)Portfolio (%)Top 10 issuers as of 31-Dec-21

JPMORGAN CHASE & CO 4.1 2.2

JOHNSON & JOHNSON 3.4 2.1

ACCENTURE PLC 2.9 0.2

AON PLC 2.6 0.1

COMCAST CORP 2.6 1.1

TEXAS INSTRUMENTS INC 2.4 0.3

HONEYWELL INTERNATIONAL INC (EQ) 2.2 0.5

MARSH & MCLENNAN (EQ) 2.2 0.4

THERMO FISHER SCIENTIFIC INC 2.2 1.1

CHUBB LTD 2.2 0.4

8.526.8Total

13

13


Portfolio Outlook and Positioning

50189.1

Large Cap Value Equity

2021 was another banner year for global equity markets with MSCI World, S&P 500 and Russell 1000 Value and Growth all finishing the year

with returns in the mid to high 20%. Positive earnings momentum – the best we've seen since 1994 by a wide margin – fueled the market's

strong performance, even as multiples remained flattish.

Unlike 2020, the story in 2021 wasn't one about growth versus value, but rather, quality outperforming across the various styles. The high

beta, lower quality rally that began in November 2020 continued into the first quarter of 2021. However, those trends started to broaden out

in the second quarter and by mid-year the market fully transitioned into high-quality leadership. Given our consistent, disciplined focus on

investing in durable businesses trading at reasonable valuations, the period of quality leadership was a more favorable one for this strategy

from a relative performance perspective. We were pleased to have kept pace with the strong market, finishing the year modestly ahead of

the Russell 1000 Value benchmark on a net-of-fees basis.

Incredibly, over the last two years, the indices have compounded double-digit returns fueled by unbelievably resilient earnings. It's amazing

that despite the global lockdowns and all the disruptions that have occurred over the last two years, corporate earnings have appreciated

over 20% in the US from pre-pandemic levels in 2019.

Taking a further step back, from the depths of the Global Financial Crisis, the compounded annual equity market returns have significantly

outpaced the long-term averages. The S&P 500, Russell 1000 Value and Russell 1000 Growth have annualized returns of approximately 19%,

16% and 21%, respectively, since March 6, 2009. While it's impossible to predict the direction of markets moving forward, it's hard for us to

imagine that this pace of absolute returns can continue for much longer. The market was fueled by P/E multiple expansion in 2020 and by a

significant rebound in earnings growth in 2021. So, what may lay ahead for 2022?

There are three primary drivers of market returns: Valuation multiples, earnings and capital return. By almost any metric, equity market

valuations are at or near all-time high levels. It doesn't mean that valuations can't move higher from here, but to us it is hard to make a

compelling case for why that should occur barring a significant step down in rates.

14

14



50189.1

Company earnings are driven by revenues, margins and net share repurchase activity. After recovering from the pandemic shutdowns in 2020

global GDP growth accelerated to nearly 6% in 2021 and is expected to moderate in 2022 to less than 5%, presenting a slight headwind to

economic growth. As for profitability, corporate margins reached all time high levels by the end of 2021.

To be sure, there have been many changes over time that we believe support the case for higher margins than companies have earned in the

past. There have been significant substitutions of capital for labor and technological advancements which have led to structurally higher

margins as compared to 20-30 years ago. We're not sure, however, that the current high levels of profitability are sustainable, particularly in

the face of more persistent inflationary pressures we are currently experiencing. In terms of capital return, corporate balance sheets remain

flush with cash. Corporate cash, as a percentage of assets, is close to historic highs at 6.5% as compared to long-term averages of 3.8%

(Strategas Research Partners). Therefore, it's possible share repurchase activity could be a significant contributor to earnings growth in 2022.

Consensus expects earnings growth to slow from its torrid pace of over 30% in 2021 to a still very healthy level of 9.5% in 2022. Taking all of

this into consideration, we believe that meeting expectations for earnings growth in 2022 is largely going to depend on a company's ability

to deliver revenue growth and redeploy capital effectively, while protecting margins.

Inflation was a consistent theme in our discussions with companies and with each other in 2021. The debate over whether these trends are

transitory or persistent remains, with more areas – although not all – appearing to be less temporary than originally assumed. We ended the

year with headline inflation numbers at the highest levels seen in decades.

Some of the raw materials input costs such as lumber and iron ore – which saw significant price appreciation early on – have begun to

normalize, while other areas such as semiconductors continue to experience shortages and stickier prices. Many companies have taken

proactive steps to offset these inflationary pressures. Taking pricing actions in 2021 or planned actions in 2022 we feel could largely enable

the companies we own to offset rising input costs, albeit in some cases with a lag. Based on our macro-risk assessment and a qualitative

evaluation of the companies owned in the portfolio, we believe that the strategy is well-positioned even in a more potentially sustained

inflationary environment.

Labor is the area we are most focused on heading into 2022. Wages for lower skilled jobs increased in 2021 as companies struggled to fill

open positions. We haven't seen this upward pressure translate into wage increases for higher skilled workers yet. Industries such as banking

and fintech, where there has been a lot of new company formation and venture capital investment, seem likely to face increased competition

15

15



50189.1

for skilled and educated workers. We believe that a strong corporate culture can act as a mitigating factor to these competitive pressures,

helping them to retain higher skilled workers and offset some of the upward pressure on wages.

One of the more interesting dynamics we are watching is the precipitous fall in the labor force participation rate back to levels not seen since

the mid-1970s. After peaking around 67% at the turn of the century, the participation rate began a downward slide, collapsing during the

global pandemic. Declines in labor force participation isn't surprising given the broader backdrop of shutdowns and health concerns during

the height of the pandemic, however, the lack of recovery is more notable. Where we go from here will have significant implications on

whether companies will be facing an environment of sustained wage inflation moving forward.

In an inflationary environment, owning companies that have pricing power and the flexibility to adapt and adjust is imperative to being able

to sustainably to try and create long-term value. We have always been focused on investing in companies whose businesses have

demonstrated long-term durability. An important element in our assessment is the level of business differentiation, pricing power and a

company's ability to adapt as circumstances change. We believe that the companies owned in this portfolio are well positioned to successfully

navigate a variety of environments moving forward.

So, where may we go from here? Liquidity provided by global central banks has left fiscal balance sheets at unprecedented levels. The

combination of all these factors have resulted in lower yields across most asset classes over the last two decades. While we feel absolute

returns for equities may be muted over the coming decade than the last, we firmly believe that equities may outperform many other asset

classes. This has pushed investors into riskier assets. Longer-term rates remain at very low levels and despite increased inflationary pressures,

haven't moved significantly. This has resulted in meaningfully negative real rates which as of 12/31/21 were at a historically low level.

We believe that the opportunity for active managers like MFS to add value for clients is excellent. Encouragingly we've started to see the

market distinguishing between companies that have a high level of differentiation and pricing power and those that don't. We've seen equity

flows turning back toward active managers in 2021 and believe there are good reasons why this could continue to be the case moving forward.

While we are building the portfolio from the bottom-up, we are keenly aware of macroeconomic factors – including inflation, increased

budget deficits and higher taxes – that will have implications for many companies. Working closely with our team of global research

analysts to ensure that we understand the long-term implications of these and other considerations we feel puts us in an excellent position

16

16



50189.1

to assess the risk-adjusted returns of the companies we own and reflect this accordingly in the portfolio. Thoughtful risk management,

diligent fundamental, bottom-up analysis and careful consideration of how companies are addressing sustainability issues and interacting

with all of their stakeholders over the next decade and beyond will be critical elements in aiming to add long-term value for clients moving

forward. We are confident that our long-term focus, collaborative research organization and rigorous bottom-up investment process

positions us well to continue to try to add value through active management for many years to come.

Significant Transactions in Q4 2021

During the fourth quarter, the most significant change in the portfolio was its decreased exposure to the financials sector – mostly due to

the underperformance of the sector. We started one new position (Charter Communications) and had an overall name count at 75 at

quarter end.

We initiated a position in Charter Communications during the quarter. We have had exposure to the broadband cable industry for many

years, with Comcast being a top holding in the portfolio. The stocks have pulled back a lot on weaker broadband unit growth at both

Charter and Comcast. In our view, it seems highly likely that this slower growth is a result of a return to "normalization" from the above

trend broadband growth during the Pandemic. Although we feel it will probably take a few years for things to normalize, the underlying

business seems very healthy, especially with the roll out of the wireless offering. Charter generates a healthy level of free cash flow and its

valuation pulled back to very attractive levels.

We continued to trim back a number of well positioned companies – such asAccenture, Nasdaq and Sherwin Williams - whose strong

performance left valuations a bit more expensive. We eliminated our small position inChevron during the period. We've been reducing

our exposure to Chevron over the last few years as the dynamics within the energy sector – both respect to commodity price volatility and

with the implications of transitioning to a net zero economy – evolved more rapidly. With energy stocks rebounding sharply in 2021, shares

of Chevron appreciated over 46% and we felt that there were more attractive opportunities elsewhere. We eliminated our smaller position

in T Rowe Price following strong performance during 2021 to fund and build a newer position inKKR, which was started in the third

quarter. We also trimmed back our holdings inPhilip Morris and eliminated our position in JM Smucker to add to more attractive areas in

the portfolio includingDupont, Merck, International Flavors & Fragrances, Marriottand Pepsi.

17

17



50189.1

Significant Transactions in 2021

A lack of sustained volatility combined with a long-term investment time horizon contributed to low portfolio turnover in 2021. We ended

the year, with an overall turnover rate of a bit less than 8%, which is an historically low level. Throughout the course of the year we started

five new positions (Charter, International Flavors & Fragrances, KKR, Paccarand Progressive), while eliminating seven (Chevron, Danone, JM

Smucker, Organon, State Street, T. Rowe Price and Verizon).Thematically, we added to names that had underperformed on shorter-term

concerns (American Express, Charter, Colgate Palmolive, Dupont, Merck, Paccar, Progressive, Marriott, Union Pacific, ) and to higher quality

names at reasonable valuations (Dominion, Morgan Stanley, KKR, Pepsi). It's no surprise that in a market that appreciated over 25% for the

year, we continued to pare back holdings that have outperformed and whose valuations had gotten a bit more expensive ( Accenture,

Danaher, Equifax, Moody's, Nasdaq, NXP Semiconductor, Sherwin Williams). We also trimmed back or eliminated several holdings in favor of

more attractive opportunities – both intra-sector and in other areas of the portfolio – ( Archer Daniels Midland, Chevron, Goldman Sachs,

Travelers, T. Rowe Price, State Street ) and trimmed back or eliminated positions in companies whose competitive positioning isn't quite as

strong as it once was (Fiserv, Philip Morris International, US Bancorp, Verizon).

The commentary included in this report was based on a representative fully discretionary portfolio for this product style; as such the commentary may include securities not held inyour portfolio due to account, fund, or other limits.

18

18

Portfolio Holdings


Equivalent

exposure (%)As of 31-Dec-21

Cash & Cash Equivalents 1.1

1.1Cash & Cash Equivalents

Communication Services 2.9

2.6Comcast Corp

0.3Charter Communications Inc

Consumer Discretionary 2.5

1.8Lowe's Cos Inc

0.7Marriott International Inc/MD

Consumer Staples 7.0

1.7Nestle SA

1.6Diageo PLC

1.1PepsiCo Inc

0.8Kimberly-Clark Corp

0.7Colgate-Palmolive Co

0.5Reckitt Benckiser Group PLC

0.4Archer-Daniels-Midland Co

0.2Philip Morris International Inc

Energy 2.0

0.9ConocoPhillips

0.6EOG Resources Inc

0.5Pioneer Natural Resources Co

Financials 27.4

4.1JPMorgan Chase & Co

2.6Aon PLC

2.2Marsh & McLennan Cos Inc

2.2Chubb Ltd

1.7Progressive Corp

1.7Nasdaq Inc

1.7Morgan Stanley

1.6Citigroup Inc

1.5American Express Co

1.5BlackRock Inc

1.3PNC Financial Services Group Inc

1.2Travelers Cos Inc

Equivalent


Financials 27.4

1.2Goldman Sachs Group Inc

1.1US Bancorp

0.8Truist Financial Corp

0.6KKR & Co Inc

0.5Moody's Corp

Health Care 18.7

3.4Johnson & Johnson

2.2Thermo Fisher Scientific Inc

2.1Pfizer Inc

1.9Cigna Corp

1.9Medtronic PLC

1.8Abbott Laboratories

1.7Danaher Corp

1.4Merck & Co Inc

1.1McKesson Corp

0.9Boston Scientific Corp

0.3Roche Holding AG

Industrials 18.3

2.2Honeywell International Inc

2.1Northrop Grumman Corp

1.9Union Pacific Corp

1.7Eaton Corp PLC

1.7Illinois Tool Works Inc

1.6Johnson Controls International PLC

1.2Equifax Inc

1.2Trane Technologies PLC

1.0Stanley Black & Decker Inc

0.8Masco Corp

0.8Lockheed Martin Corp

0.7Raytheon Technologies Corp

0.6Canadian National Railway Co

0.4PACCAR Inc

19

19

Portfolio Holdings


Equivalent


Industrials 18.3

0.3Otis Worldwide Corp

Information Technology 8.9

2.9Accenture PLC

2.4Texas Instruments Inc

0.9NXP Semiconductors NV

0.8Fidelity National Information Services Inc

0.7Analog Devices Inc

0.7Intel Corp

0.5Fiserv Inc

Materials 4.4

1.7PPG Industries Inc

1.3Sherwin-Williams Co

1.0DuPont de Nemours Inc

0.4International Flavors & Fragrances Inc

Real Estate 0.5

0.5Public Storage REIT

Utilities 6.2

2.0Duke Energy Corp

1.6Southern Co

1.4Dominion Energy Inc

0.7American Electric Power Co Inc

0.5Xcel Energy Inc

The Global Industry Classification Standard (GICS®) was developed by and/or is the

exclusive property of MSCI, Inc. and S&P Global Market Intelligence Inc. ("S&P Global

Market Intelligence"). GICS is a service mark of MSCI and S&P Global Market

Intelligence and has been licensed for use by MFS. MFS has applied its own internal

sector/industry classification methodology for equity securities and non-equity

securities that are unclassified by GICS.

20

20

Additional Disclosures


Frank Russell Company ("Russell") is the source and owner of the Russell Index data contained or reflected in this material and all trademarks, service marks and

copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or

omissions in the Russell Indexes and/or Russell ratings or underlying data and no party may rely on any Russell Indexes and/or Russell ratings and/or underlying data

contained in this communication. No further distribution of Russell Data is permitted without Russell's express written consent. Russell does not promote, sponsor or

endorse the content of this communication.

21

21

mfs® value fund

Documents