MFS® Municipal Bond Strategies
KEEP MORE
OF WHAT YOU EARN
Consider MFS’ tax-advantaged funds
This brochure provides year-end information and must be accompanied
by a quarterly performance supplement insert.
MFS FIXED-INCOME STRATEGIES
®
An important part of a tax-smart strategy for managing wealth
Municipal bonds are
a type of debt issued
by state and local
governments to finance
public projects and
services that improve
the communities in
which we live.
For good reason, municipal bonds have long been popular
investments, particularly with individuals in the higher tax brackets
and income-oriented retirees.
In 2013, millions of individual investors nationwide reported more
than $68 billion in tax-exempt interest income.1
However, you do not have to be wealthy or retired for municipal
bonds to be attractive options. Beyond their unique tax benefits,
municipal bonds’ valuable diversification potential and relative
stability may also appeal to investors of all income levels and ages.
The investments you choose should correspond to your financial needs, goals, and risk tolerance.
For assistance in determining your financial situation, please consult an investment professional.
1
Source: Internal Revenue Service, the latest data available
Diversification does not guarantee a profit or protect against a loss.
Municipal bonds are subject to certain risks, including interest rate risk, credit risk, and inflation risk. See the fund’s prospectus for more risk considerations.
MFS does not provide legal, tax, or accounting advice. Consult your tax advisor for advice that is applicable to your personal tax situation. Any statement contained
in this brochure concerning U.S. tax matters was not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal
Revenue Code. Before making any investment decisions, you should obtain your own independent tax and legal advice based on your particular circumstances.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
KEEP MORE OF WHAT YOU EARN WITH
TAX‑EXEMPT MUNICIPAL BONDS
The primary benefit of municipal bond investing is that you can earn income that is usually exempt from
federal taxes. While municipal bonds tend to have lower stated yields than taxable bonds of equal
quality and maturity, their favorable tax status can lead to higher after-tax returns and after-tax income.
To help determine whether municipal bonds are a good fit, you will want to assess if they allow you to
pocket more income than a comparable taxable bond. The higher your tax bracket, the greater the
potential after-tax benefit of owning municipal bonds. If you invest in municipal bonds that are issued in
your home state, your interest income also may be exempt from state and local income taxes. Please note
that some income may be subject to state, federal, and/or alternative minimum tax (AMT). Additionally,
capital gains, if any, are subject to a capital gains tax.
Calculate taxable equivalent yields2
Key points
n
hile municipal bonds
W
tend to have lower yields
than taxable bonds of
equal quality and
maturity, their favorable
tax status can lead to
higher after-tax returns
and income.
n
T he higher your tax
bracket, the greater the
potential benefit of
owning municipal bonds.
n
If you invest in municipal
bonds that are issued
from your home state,
interest also may be
exempt from state and
local income taxes.
One way to make an apples-to-apples comparison of municipal and taxable bonds is to calculate
a taxable equivalent yield for a given yield you can earn on a municipal bond. The formula for
calculating this amount is:
Taxable equivalent yield = Tax-free yield ÷ (1 – your federal tax bracket)
As an example, a person in the 28% federal tax bracket who is considering a 5% municipal
bond would plug in the following numbers.
5% ÷ (1.00 – 0.28) = 6.94%
To pocket the same amount of income he or she could earn from a 5% municipal bond,
this investor would have to find a comparable taxable bond with a 6.94% yield.
If yields on comparable taxable bonds were not that high, the investor would be better
served ­— that is, realize more income — owning the 5% municipal bond.
Use taxable equivalent yields to compare municipal and taxable bonds2
TAX-EXEMPT MUNICIPAL BOND YIELDS
FEDERAL
INCOME
TAX RATES
2%
10%
2.22%
3.33%
15%
2.35%
25%
3%
4%
5%
6%
4.44%
5.56%
6.67%
3.53%
4.71%
5.88%
7.06%
2.67%
4.00%
5.33%
6.67%
8.00%
28%
2.78%
4.17%
5.56%
6.94%
8.33%
33%
2.99%
4.48%
5.97%
7.46%
8.96%
35%
3.08%
4.62%
6.15%
7.69%
9.23%
TAXABLE BOND EQUIVALENT YIELDS
Hypothetical examples are for illustrative purposes only and are not intended to represent the future performance of any MFS product.
2
Individuals who receive Social Security or Railroad Retirement benefits should consult their tax advisor to determine what effect, if any, an investment in municipal
bond funds may have on the federal taxation of their benefits.
Past ­performance is no guarantee of future results.
page 1
MUNICIPAL BOND PRICES HAVE BEEN
RELATIVELY MORE STABLE
While individuals make up the overwhelming majority of the municipal bond investor base, they
generally have not been active, aggressive traders in the secondary market (where municipal bonds
are bought and sold among investors). Instead, individual investors tend to buy and hold their
municipal bonds to maturity.
Because of this low trading volume, municipal bond prices have historically been far less volatile than
the prices of equities and other types of fixed-income securities over time.
Key points
n
n
unicipal bonds
M
historically have had lower
price volatility than highyield bonds, U.S.
Treasuries, and stocks.
Relatively low volatility
Annualized standard deviations3 for periods ended 12/31/16
n Bloomberg Barclays Municipal Bond Index
n Bloomberg Barclays U.S. High-Yield Corporate Bond Index
n Bloomberg Barclays 10-Year Treasury Bond Index
n Standard & Poor’s 500 Stock Index
iversifying with relatively
D
stable investments may
help provide more risk/
return balance to your
overall portfolio.
15.28
15.29
10.75
10.37
9.18
7.61
5.52
7.32
6.17
4.54
3.73
5 years
4.16
10 years
20 years
As part of a diversified portfolio, municipal bonds could help temper the
inherent volatility of stocks and other types of bonds.
For 5-, 10-, and 20-year periods as of 12/31/16: the Bloomberg Barclays Municipal Bond Index had average annual total returns of 3.28%, 4.25%, and 5.00%;
the Bloomberg Barclays U.S. High-Yield Corporate Bond Index had average annual total returns of 7.36%, 7.45%, and 7.02%; the Bloomberg Barclays 10-Year
Treasury Bond Index had average annual total returns of 1.39%, 4.89%, and 5.24%; the Standard & Poor’s 500 Stock Index had average annual total returns of
14.66%, 6.95%, and 7.68%.
The historical performance of the indices is provided to illustrate market trends; it does not represent the performance of any investment product. Index returns
do not include any investment-related fees and expenses. It is not possible to invest directly in an index.
3
Standard deviation reflects an investment’s total return volatility over a minimum of 36 monthly returns. The larger a portfolio’s standard deviation, the greater its volatility.
The Bloomberg Barclays Municipal Bond Index measures the municipal bond market. The Bloomberg Barclays U.S. High-Yield Corporate Bond Index measures the high-yield bond
market. The Bloomberg Barclays 10-Year Treasury Bond Index measures 10-year Treasury bonds. The Standard & Poor’s 500 Stock Index measures the broad U.S. stock market.
page 2
Past ­performance is no guarantee of future results.
PROFESSIONAL MANAGEMENT
MAKES A DIFFERENCE
At MFS we believe that there are four key benefits that make mutual funds
the most affordable, sensible, and convenient way for individuals to take
advantage of investment opportunities in the municipal bond market.
Greater access to the market
Professional investment managers know and understand how the $3.8 trillion municipal bond
market operates. Using their experience and expertise, these professionals actively conduct extensive
credit research and analysis of individual securities, leverage highly efficient trading desks, and have
frequent contact with the 50,000 issuers and dealers in the primary and secondary markets.
Better investment selection
Municipal bonds are first issued in the primary market, which is dominated by professional and
institutional investors. This makes it difficult for individual investors to compete for the limited supply
of the most cost-effective bonds available. The complexities of the secondary market (in which bonds
are resold before their maturity dates) and higher transaction costs make investing in municipal
bonds a challenge for individual investors.
Broad, cost-effective diversification
For a relatively low minimum initial investment, a municipal bond mutual fund will spread
your investment across many different bonds, which may help reduce the risk that one bond’s
performance will have a big impact on the rest of your holdings. Trying to create and maintain a
comparable, diversified portfolio of municipal bonds would likely be difficult and cost prohibitive
for most individual investors.
More income flexibility
Most municipal bond mutual funds pay monthly dividends, while individual bonds typically only pay
interest semiannually. Mutual funds also offer automatic dividend reinvestment, a great option for
investors who want to take advantage of municipal bonds’ tax benefits but do not need the current
income. Reinvested, compounding earnings can help you build wealth for future needs. Please note
that bond mutual funds charge management fees and other operating expenses not inherent in
individual bonds.
“Our municipal bond expertise gives
individual investors access to opportunities
that few would have on their own.”
Michael Roberge, CEO, President and Chief Investment
Officer, MFS Investment Management
page 3
SEEK A TAX ADVANTAGE WITH MFS
MUNICIPAL BOND FUNDS
National and state municipal bond mutual funds
Give your portfolio a tax-efficient investing advantage with MFS municipal bond funds. We offer a wide array of national and state-specific
portfolios that allows you to diversify your assets across bond types, maturities, and issuers.
MFS
Municipal High
Income Fund
MFS
Municipal
Income Fund
MFS
Municipal
Limited
Maturity Fund
The first high-yield
municipal fund
An opportunistic
national tax-exempt
bond fund
A conservative
tax-exempt
bond fund
Morningstar®
Category: High Yield
Muni
Morningstar®
Category: Muni
National Long
Morningstar®
Category: Muni
National Short
Inception date:
2/24/84
Inception date:
12/29/86
Inception date:
3/17/92
Summary: Seeks total
return with an emphasis
on high income exempt
from federal income tax,
but also considering
capital appreciation.
Summary: Seeks total
return with an emphasis
on income exempt from
federal income tax, but
also considering capital
appreciation.
Summary: Seeks total
return with an emphasis
on income exempt from
federal income tax, but
also considering capital
preservation.
•first high yield municipal
fund
•opportunistic national
tax-exempt fund
focused on investment
grade municipal debt
•conservative tax exempt
fund with average
maturity of five years or
less
•performance sought
from sector/security
selection and yield curve
analysis
•performance sought
from sector/security
selection and yield curve
analysis
•constructs portfolio
from the bottom up
•research oriented
®
•relies on intense credit
research process to
identify issuers with
improving credit fundamentals
•constructs portfolio
from the bottom up
FUND SYMBOLS
®
FUND SYMBOLS
®
FUND SYMBOLS
Class A
MMHYX
Class A
MFIAX
Class A
MTLFX
Class B
MMHBX
Class B
MMIBX
Class B
MTLBX
Class C
MMHCX
Class C MMICX
Class C MTLCX
Class I
MIMIX
Class I
MTLIX
Class I
MMIIX
Risks: 4, 5, 6, 7, 8, 9, 10
Risks: 4, 5, 6, 7, 9, 10
Risks: 4, 5, 6, 9, 10
All funds mentioned may not be available for sale by your financial advisor’s firm.
©2017 Morningstar, Inc. All rights reserved. The Morningstar information contained herein: (1) is
proprietary to Morningstar; (2) may not be copied; and (3) is not warranted to be accurate, complete,
or timely. Neither Morningstar nor its content providers is responsible for any damages or losses arising
from any use of this information.
page 4
MFS State municipal
bond mutual funds4, 5, 6, 9, 10
®
Every MFS state-specific municipal bond fund seeks to provide
double tax-free income (income that is exempt from federal and
state taxes) for in-state residents. Across the board, we use the
same disciplined investment approach to build and manage statespecific funds as we do with our national offerings.
MFS® Alabama Municipal Bond Fund7
MFS® Arkansas Municipal Bond Fund
MFS® California Municipal Bond Fund7
MFS® Georgia Municipal Bond Fund7
MFS® Maryland Municipal Bond Fund7
MFS® Massachusetts Municipal Bond Fund7
MFS® Mississippi Municipal Bond Fund8
MFS® New York Municipal Bond Fund7
MFS® North Carolina Municipal Bond Fund
MFS® Pennsylvania Municipal Bond Fund7
MFS® South Carolina Municipal Bond Fund
MFS® Tennessee Municipal Bond Fund
MFS® Virginia Municipal Bond Fund7
MFS® West Virginia Municipal Bond Fund 7,8
Important risk considerations:
4 The fund may not achieve its objective and/or you could lose money
on your investment in the fund. 5 Investments in debt instruments may
decline in value as the result of declines in the credit quality of the issuer,
borrower, counterparty, or other entity responsible for payment, underlying collateral, or changes in economic, political, issuer-specific, or other
conditions. Certain types of debt instruments can be more sensitive to
these factors and therefore more volatile. In addition, debt instruments
entail interest rate risk (as interest rates rise, prices usually fall), therefore
the Fund’s share price may decline during rising rates. Funds that consist
of debt instruments with longer durations are generally more sensitive to
a rise in interest rates than those with shorter durations. At times, and
particularly during periods of market turmoil, all or a large portion of segments of the market may not have an active trading market. As a result,
it may be difficult to value these investments and it may not be possible
to sell a particular investment or type of investment at any particular time
or at an acceptable price. The price of an instrument trading at a negative
interest rate responds to interest rate changes like other debt instruments;
however, an instrument purchased at a negative interest rate is expected
to produce a negative return if held to maturity. 6 Investments in derivatives can be used to take both long and short positions, be highly volatile,
involve leverage (which can magnify losses), and involve risks in addition
to the risks of the underlying indicator(s) on which the derivative is based,
such as counterparty and liquidity risk. 7 Investments in below investment
grade quality debt instruments can be more volatile and have greater risk
of default, or already be in default, than higher-quality debt instruments.
8 The fund’s performance could be more volatile than the performance of
more diversified funds. 9 Investments in municipal instruments can be volatile and significantly affected by adverse tax or court rulings, legislative or
political changes, market and economic conditions, issuer, industry-specific
(including the credit quality of municipal insurers), and other conditions.
10 The fund’s performance could be closely tied to the economic, political,
and other conditions in the states and U.S. territories and possessions in
which the fund invests and could be more volatile than the performance of
more geographically diversified funds.
Please see the prospectus for further information on these and
other risk considerations.
Past ­performance is no guarantee of future results.
MFS HAS AN ESTABLISHED PRESENCE
IN MUNICIPAL BOND INVESTING
Teamwork
MFS’ municipal
fixed‑income team meets
daily to share information
and insight, and to discuss
opportunities for our
national and state-specific
portfolios.
Well established.
For four decades, MFS has offered investors a way
to invest in professionally managed, well-diversified municipal
bond portfolios.
1976
1984
1986
MFS was among the
first managers to offer
a municipal bond
mutual fund. MFS Municipal High
Income Fund was the
first open-end municipal
fund of its kind.
MFS® Municipal Income
Trust was the first closedend, high-yield municipal
fund traded on the NYSE.
®
Today, our 3 national and 14 state-specific municipal bond
portfolios cover the entire range of maturities available to investors
seeking tax-exempt income, added portfolio diversification, and
capital appreciation and preservation.
Experienced.
MFS’ dedicated municipal fixed-income team consists of 8 analysts,
4 portfolio managers, 2 traders, 1 institutional portfolio manager,
and 1 research associate. The average industry experience of the
portfolio managers is 27 years. We managed more than $11.1 billion
in municipal bond portfolio assets as of December 31, 2016.
Research driven.
For its municipal bond portfolios, MFS follows the same disciplined
security-selection process that it uses with its stock and other
fixed-income portfolios. This highly collaborative, in-depth research
process emphasizes fundamental techniques of credit, sector, and
individual security analysis. It avoids guessing the direction of
interest rates. We believe that this “mistake avoidance” approach
to municipal-bond investing is a more dependable way to help
limit risk and evaluate performance potential. This process is
complemented with an extensive, systematic risk/reward analysis
of each individual security by our quantitative team.
Rely on your
financial advisor’s
expertise
Work closely with your
financial advisor to
determine which MFS
municipal bond fund may
be right for you. He or she
is familiar with your specific
financial needs, goals, and
comfort level for risk and
can help you build an
appropriate, well-diversified
portfolio.
page 5
WE BELIEVE IN THE POWER OF ACTIVE MANAGEMENTSM
MFS® is a global investment manager committed to skilled active management
as the most powerful way to meet investors’ need for strong returns over the
long term. We bring you the value of our insights and expertise through:
Integrated Research
Global Collaboration
• Active Risk Management
• Long-Term Conviction
•
•
SYMBOLS
CLASS A
CLASS I
MFS Municipal High Income Fund
MMHYX
MMIIX
MFS® Municipal Income Fund
MFIAX
MIMIX
MFS® Municipal Limited Maturity Fund
MTLFX
MTLIX
MFS Alabama Municipal Bond Fund
MFALX
MLALX
MFS® Arkansas Municipal Bond Fund
MFARX
MARLX
MFS® California Municipal Bond Fund
MCFTX
MCAVX
MFS® Georgia Municipal Bond Fund
MMGAX
MGATX
MFS Maryland Municipal Bond Fund
MFSMX
MMDIX
MFS® Massachusetts Municipal Bond Fund
MFSSX
MTALX
MFS® Mississippi Municipal Bond Fund
MISSX
MMSTX
MFS® New York Municipal Bond Fund
MSNYX
MNYLX
MFS North Carolina Municipal Bond Fund
MSNCX
MNCLX
MFS® Pennsylvania Municipal Bond Fund
MFPAX
MPALX
MFS® South Carolina Municipal Bond Fund
MFSCX
MTSCX
MFS® Tennessee Municipal Bond Fund
MSTNX
MTNLX
MFS Virginia Municipal Bond Fund
MSVAX
MIVAX
MFS® West Virginia Municipal Bond Fund
MFWVX
MWVIX
®
®
®
®
®
The investments you choose should correspond to your financial needs, goals, and risk tolerance. For assistance in determining your financial situation,
please consult an investment professional.
Before investing, consider the fund’s investment objectives, risks, charges, and expenses. For a prospectus or summary prospectus
containing this and other information, contact your investment professional or view online at mfs.com. Please read it carefully.
Please note: Not all of the funds listed may be available for sale at a specific broker/dealer firm. Please check with your financial advisor.
MFS Fund Distributors, Inc., Boston, MA
MFSP-MUNI-BRO-2/17
11929.42
Performance supplement
for public use
MFS FIXED-INCOME STRATEGIES
®
Must accompany brochure titled “Keep more of what you earn” as of 3/31/17
FUND INFORMATION, CLASS A, AS OF 3/31/17
Average annual returns,
without sales charge (%)
Inception 1 yr.
3 yr. 5 yr.
Average annual returns,
with sales charge (%)
Expense ratios (%)
10 yr.
1 yr.
3 yr.
5 yr.
10 yr.
Gross
Net
Waiver
End Date
MFS® Alabama Municipal Bond Fund (max. 4.25%) 1, 2, 3, 4, 6, 7
02/01/90
-0.07
3.64
2.91
3.84
-4.31
2.15
2.02
3.39
1.06
0.90 07/31/17
MFS® Arkansas Municipal Bond Fund (max. 4.25%) 1, 2, 3, 6, 7
02/03/92
-0.25
3.40
2.37
3.58
-4.49
1.91
1.48
3.13
0.90
0.75 07/31/17
MFS® California Municipal Bond Fund (max. 4.25%) 1, 2, 3, 4, 6, 7
06/18/85
0.33
4.92
4.19
4.37
-3.93
3.41
3.28
3.92
0.88
0.73 07/31/17
MFS® Georgia Municipal Bond Fund (max. 4.25%) 1, 2, 3, 4, 6, 7
06/06/88
-0.06
3.54
2.75
3.84
-4.30
2.05
1.86
3.39
1.03
0.90 07/31/17
MFS Maryland Municipal Bond Fund (max. 4.25%)
10/31/84
0.43
3.47
2.48
3.51
-3.84
1.98
1.60
3.06
0.98
0.83 07/31/17
MFS® Massachusetts Municipal Bond Fund (max. 4.25%) 1, 2, 3, 4, 6, 7
04/09/85
-0.04
3.87
2.81
3.94
-4.29
2.37
1.92
3.49
0.88
0.88
MFS® Mississippi Municipal Bond Fund (max. 4.25%) 1, 2, 3, 4, 5, 6, 7
08/06/92
-0.49
3.38
2.72
3.86
-4.72
1.90
1.83
3.41
0.96
0.81 07/31/17
MFS® Municipal High Income Fund (max. 4.25%) 1, 2, 3, 4, 5, 6, 7
02/24/84
1.58
6.10
5.13
4.70
-2.73
4.58
4.22
4.25
0.71
0.67 05/31/17
MFS Municipal Income Fund (max. 4.25%)
®
1, 2, 3, 4, 6, 7
—
09/07/93
0.59
4.19
3.55
4.44
-3.68
2.70
2.65
3.98
0.78
0.75 07/31/17
MFS® Municipal Limited Maturity Fund (max. 2.50%) 1, 2, 3, 6, 7
03/17/92
0.20
1.66
1.50
2.84
-2.30
0.81
0.99
2.58
0.80
0.70 08/31/17
MFS® New York Municipal Bond Fund (max. 4.25%) 1, 2, 3, 4, 6, 7
06/06/88
0.15
4.17
3.08
3.89
-4.10
2.67
2.19
3.44
0.88
0.88
—
MFS® North Carolina Municipal Bond Fund (max. 4.25%) 1, 2, 3, 6, 7
10/31/84
-0.14
3.45
2.62
3.73
-4.39
1.96
1.73
3.28
0.87
0.87
—
MFS Pennsylvania Municipal Bond Fund (max. 4.25%)
®
1, 2, 3, 4, 6, 7
02/01/93
0.57
4.23
3.26
3.93
-3.71
2.73
2.37
3.48
0.94
0.79 07/31/17
MFS® South Carolina Municipal Bond Fund (max. 4.25%) 1, 2, 3, 6, 7
10/31/84
-0.56
3.43
2.40
3.41
-4.79
1.94
1.51
2.96
0.89
0.84 07/31/17
MFS® Tennessee Municipal Bond Fund (max. 4.25%) 1, 2, 3, 6, 7
08/12/88
-0.01
3.40
2.43
3.63
-4.26
1.91
1.55
3.18
0.94
0.88 07/31/17
MFS® Virginia Municipal Bond Fund (max. 4.25%) 1, 2, 3, 4, 6, 7
10/31/84
-0.11
3.56
2.70
3.70
-4.36
2.08
1.81
3.25
0.89
0.82 07/31/17
MFS West Virginia Municipal Bond Fund (max. 4.25%)
10/31/84
0.02
3.44
2.39
3.36
-4.23
1.95
1.50
2.91
0.93
0.87 07/31/17
®
®
1, 2, 3, 4, 6, 7
1, 2, 3, 4, 5, 6, 7
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 be worth more or less than the original cost; current performance may be lower or higher than quoted. For most recent month-end
performance, please visit mfs.com. Other share classes are available for which performance and expenses will differ.
P erformance 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. The performance is as of the date shown; it may not
include the fund’s entire investment portfolio and is subject to change. Please see the
prospectus and financial statements for complete details. All results are historical and
assume the reinvestment of dividends and capital gains.
State Municipal Bond Funds – A small portion of income may be subject to state, federal,
and/or alternative minimum tax. Capital gains, if any, are subject to a capital gains tax.
National Municipal Bond Funds – Dividends are generally subject to state and local
taxes. For investors subject to the alternative minimum tax, a small portion of dividend
income may be taxable. Capital gains distributions, if any, are taxable.
Gross Expense Ratio is the fund’s total operating expense ratio from the fund’s
most recent prospectus. Net Expense Ratio reflects the reduction of expenses from
fee waivers and reimbursements. Elimination of these reductions will result in higher
expenses and lower performance. These reductions will continue until at least date noted
under the “Waiver End Date” column.
Important risk considerations: 1 The fund may not achieve its objective and/or you could lose money on your investment in the fund. 2 Investments in debt
instruments may decline in value as the result of declines in the credit quality of the issuer, borrower, counterparty, or other entity responsible for payment,
underlying collateral, or changes in economic, political, issuer-specific, or other conditions. Certain types of debt instruments can be more sensitive to these
factors and therefore more volatile. In addition, debt instruments entail interest rate risk (as interest rates rise, prices usually fall), therefore the Fund’s share
price may decline during rising rates. Funds that consist of debt instruments with longer durations are generally more sensitive to a rise in interest rates than
those with shorter durations. At times, and particularly during periods of market turmoil, all or a large portion of segments of the market may not have an
active trading market. As a result, it may be difficult to value these investments and it may not be possible to sell a particular investment or type of investment
at any particular time or at an acceptable price. The price of an instrument trading at a negative interest rate responds to interest rate changes like other
debt instruments; however, an instrument purchased at a negative interest rate is expected to produce a negative return if held to maturity. 3 Investments in
derivatives can be used to take both long and short positions, be highly volatile, involve leverage (which can magnify losses), and involve risks in addition to the
risks of the underlying indicator(s) on which the derivative is based, such as counterparty and liquidity risk. 4 Investments in below investment grade quality debt
instruments can be more volatile and have greater risk of default, or already be in default, than higher-quality debt instruments. 5 The fund’s performance could
be more volatile than the performance of more diversified funds. 6 Investments in municipal instruments can be volatile and significantly affected by adverse tax
or court rulings, legislative or political changes, market and economic conditions, issuer, industry-specific (including the credit quality of municipal insurers), and
other conditions. 7 The fund’s performance could be closely tied to the economic, political, and other conditions in the states and U.S. territories and possessions
in which the fund invests and could be more volatile than the performance of more geographically diversified funds.
Please see the prospectus for further information on these and other risk considerations.
Before investing, consider the fund’s investment objectives, risks, charges, and expenses. For a prospectus or summary prospectus
containing this and other information, contact your investment professional or view online at mfs.com. Please read it carefully.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
MFS Fund Distributors, Inc.
MFSP-MUNIBRO-INS-4/17
Boston, MA11929.43