Investor Presentaiton

Portfolio Outlook and Positioning MFS® SharePoint, Office and Azure, and Al will strengthen their bundling strategy. We also added to our position in Salesforce during the quarter as valuation, especially on FCF, didn't appear to reflect improving growth driven by price increases, Al tailwinds and bundling of front office apps. Within electrical equipment, we own companies that are well positioned to participate in the secular trends of grid hardening, renewable energy infrastructure and more electrical content in buildings, homes and industrial facilities. Within financial services, our exposure consists of a combination of payment networks (Visa and MasterCard) and fin tech (Fiserv) as these companies are steady compounders and have valuations that appear attractive for the quality and defensiveness of the business. Conversely, we have no exposure to hotels, restaurants & leisure, and automobiles. Within hotels and restaurants & leisure, we are worried that some of the cost concerns are more structural and here to stay, likely pressuring margins for many companies in this category. Within autos, we do not own Tesla under the view that there are no imminent growth catalysts over the next few years as volume growth is under pressure and either Tesla needs to revert to incremental pricing discounts to move volume that results in further margin pressure or it can try to preserve margins at the expense of growth, in which case it is very likely they see lower volume growth. Under either scenario, we believe estimates need to continue to move lower and the stock's valuation isn't reflecting this. We are gaining exposure to trends within electric vehicles through our position in TE Connectivity, which in our view is a more attractively valued and diverse way to gain exposure to these secular trends. We are also underweight technology hardware, storage & peripherals, largely due to our underweight in Apple. For Apple, we continue to remain underweight given weakening fundamentals, a still very expensive valuation, and idiosyncratic risks to its largest profit streams. More specifically, we expect 2024 to be a year of muted growth for Apple driven by weakness across most hardware categories and incremental pressure for iPhone in China. In addition, the Google licensing payment and Apple's App Store revenue are both by far the largest contributors to forecast profit growth and both revenue streams are under increased regulatory scrutiny. During the quarter, the largest increase to relative weighting was in the consumer discretionary sector, due to the underperformance of Tesla reducing the benchmark weight and adding to our position in Amazon given increased confidence in higher, more durable margins due to revenue mix (AWS, advertising, third-party growing faster than first party) and harvesting the benefits of regionalization as well as doubling the distribution network during COVID. In addition, we admire its growing range of Al-related capabilities bolstered by the wealth of customer data within its footprint (in retail, Prime, AWS, Alexa, etc.). The largest decrease in relative weighting was in the communication services sector as we trimmed our position in Comcast. We own Comcast in part due to what historically were defensive characteristics. But with increased competition, streaming and cord cutting weakening what had been a formidable moat and raising terminal value concerns, and a capital FOR DEALER AND INSTITUTIONAL USE ONLY. - Massachusetts Investors Trust PRPEQ-MIT-31-Mar-24 15

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