FAQ

Q. What expenses do the portfolios charge, and what are they for?
A. You can find a complete breakdown in each portfolio's annual and semiannual reports. These reports are mailed to investors each year and are also available on mfs.com. Included among the expenses are

• management fees, which compensate the investment adviser for managing the portfolio's securities and providing related services
• distribution and service fees for paying marketing and distribution expenses
• investor servicing agent fees for maintaining investor records and providing investor services, such as toll-free phone communications, and computerized account services
• administrative fees for accounting and legal services
• custodial fees for safekeeping portfolio securities

Q. Do portfolio expenses vary among MFS portfolios?
A. Yes. Although the types of expenses are similar for each portfolio, the amount can be affected by factors such as the size and the type of portfolio.

Q. Why is the MFS Cost Calculator based on the portfolio's fiscal year rather than on the calendar year?
A. The calculation is made using the portfolio's audited expense ratio, adjusted for acquired fund fees and expenses (AFFE), if any, from underlying funds that the Fund may invest in, which is determined at the end of the portfolio's fiscal year.

Q. What is a fiscal year?
A. A fiscal year is typically an accounting period covering 12 months, at the end of which the books are closed and the profit or loss is determined. This is not necessarily the same as a calendar year, which runs from January through December.

Q. When are expense ratios determined for a portfolio?
A. Expense ratios are computed semi-annually and available in shareholder reports approximately 60 days after the end of the portfolio's fiscal reporting period.

Q. If a portfolio or class is relatively new, when can I use the calculator to illustrate sales charges and expenses?
A. The calculator can be used once the portfolio or class has both a one-year return and an expense ratio based on a complete fiscal year.

Q. Why does my portfolio show only eight years of data when the portfolio has been in existence for nine years?
A. The calculator makes its computations based on the portfolio's full fiscal year. If the portfolio's share class inception date was after its fiscal year-end, the calculation will begin at the start of the first full fiscal year. For example, if the inception date of an MFS® portfolio was June 2002, but the fiscal year-end is May, the calculator will show the first full year of data in August 2004 for the period June 1, 2003, through May 31, 2004.

Q. What is the difference between a front-end sales charge and a contingent deferred sales charge (CDSC)?
A. Both types of sales charge compensate your investment professional for services provided, especially for the advice provided in helping you select a portfolio to meet your investment goals. A front-end sales charge is paid when you purchase certain shares of a portfolio. It is included in the price per share that you pay (for example, Class A shares). A contingent deferred sales charge (CDSC) is charged when you redeem certain portfolio shares that were sold without an initial sales charge (for example, Class B shares). The fee decreases over time until it disappears.

Q. Is it possible to receive reduced sales charges for any MFS portfolios?
A. Yes, there are a number of ways to qualify for reduced sales charges. Check with your investment professional for further information.

Q. When do MFS' Class B shares convert to Class A shares?
A. MFS' Class B shares convert to Class A shares after eight years.

Q. Why am I given the option to change the applicable sales charge in the calculator?
A. You can choose a lower rate in case you purchased shares at a reduced sales charge.

Q. Why can't I do calculations where I've made several additional investments, or take my dividends and capital gains in cash, or calculate over a period longer than 10 years?
A. These types of calculations require an enormous amount of data and complex programming. Our intent was to provide a calculator that was easy to use for the largest number of investors so they can get an indication of the expenses in different situations. To do this as quickly and simply as possible, we had to make certain assumptions. The calculators are not intended to provide an exact calculation for each individual investor.

Q. When using this calculator, could my results be different from results obtained from other online calculators?
A. Yes, another calculator could have made different assumptions or used different methodologies.