Quarterly Report
October 31, 2023
MFS® Global High Yield Fund
HYO-Q3
Portfolio of Investments
10/31/23 (unaudited)
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
Issuer | Shares/Par | Value ($) | ||
Bonds – 29.6% | ||||
Asset-Backed & Securitized – 0.4% | ||||
RAC Bond Co. PLC, 5.25%, 11/04/2027 (n) | GBP | 699,000 | $700,381 | |
Automotive – 0.4% | ||||
TI Automotive Finance PLC, 3.75%, 4/15/2029 (n) | EUR | 815,000 | $716,290 | |
Basic Industry – 0.3% | ||||
PeopleCert Wisdom Issuer PLC, 5.75%, 9/15/2026 (n) | EUR | 435,000 | $440,942 | |
PeopleCert Wisdom Issuer PLC, 5.75%, 9/15/2026 | 150,000 | 152,049 | ||
$592,991 | ||||
Broadcasting – 0.8% | ||||
Banijay Entertainment S.A.S.U., 7%, 5/01/2029 (n) | EUR | 458,000 | $479,158 | |
Banijay Group S.A.S., 6.5%, 3/01/2026 | 475,000 | 495,687 | ||
Summer (BC) Holdco S.à r.l., “A”, 9.25%, 10/31/2027 | 292,842 | 246,335 | ||
WMG Acquisition Corp., 2.25%, 8/15/2031 (n) | 510,000 | 418,214 | ||
$1,639,394 | ||||
Building – 0.5% | ||||
HT Troplast GmbH, 9.375%, 7/15/2028 (n) | EUR | 364,000 | $373,572 | |
HT Troplast GmbH, 9.375%, 7/15/2028 | 229,000 | 235,022 | ||
Standard Industries, Inc., 2.25%, 11/21/2026 (n) | 430,000 | 398,107 | ||
$1,006,701 | ||||
Business Services – 0.6% | ||||
Nexi S.p.A., 2.125%, 4/30/2029 | EUR | 1,310,000 | $1,136,861 | |
Cable TV – 1.2% | ||||
Summer BidCo B.V., 9%, 11/15/2025 (p) | EUR | 906,087 | $934,762 | |
United Group B.V., 3.125%, 2/15/2026 | 220,000 | 211,250 | ||
Virgin Media Vendor Financing Notes III DAC, 4.875%, 7/15/2028 | GBP | 370,000 | 376,011 | |
Ziggo B.V., 2.875%, 1/15/2030 (n) | EUR | 760,000 | 640,309 | |
Ziggo B.V., 2.875%, 1/15/2030 | 100,000 | 84,251 | ||
$2,246,583 | ||||
Chemicals – 0.9% | ||||
INEOS Quattro Finance 2 PLC, 2.5%, 1/15/2026 | EUR | 597,000 | $587,468 | |
SCIL IV LLC/SCIL USA Holdings LLC, 4.375%, 11/01/2026 (n) | 715,000 | 696,964 | ||
SPCM S.A., 2.625%, 2/01/2029 | 456,000 | 420,813 | ||
$1,705,245 | ||||
Conglomerates – 1.0% | ||||
Grupo KUO S.A.B. de C.V., 5.75%, 7/07/2027 (n) | $ | 805,000 | $677,778 | |
RENK AG, 5.75%, 7/15/2025 | EUR | 445,000 | 463,351 | |
Renk GmbH (Frankfurt), 5.75%, 7/15/2025 (n) | 465,000 | 484,176 | ||
SCC Power PLC, 8% (8% Cash or 4% Cash and 4% PIK) to 6/15/2024, 8% Cash to 12/31/2028 (n) | $ | 828,493 | 308,779 | |
SCC Power PLC, 4% (4% Cash or 4% PIK) to 6/15/2024, 4% Cash to 5/17/2032 (n) | 448,767 | 55,064 | ||
$1,989,148 | ||||
Consumer Products – 0.1% | ||||
Coty, Inc., 5.75%, 9/15/2028 (n) | EUR | 237,000 | $252,262 | |
Consumer Services – 0.5% | ||||
Verisure Holding AB, 3.25%, 2/15/2027 | EUR | 315,000 | $300,805 | |
Verisure Midholding AB, 5.25%, 2/15/2029 | 810,000 | 738,183 | ||
$1,038,988 |
1
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Containers – 1.2% | ||||
Ardagh Metal Packaging Finance USA LLC, 3%, 9/01/2029 (n) | EUR | 180,000 | $139,991 | |
Ardagh Metal Packaging Finance USA LLC, 3%, 9/01/2029 | 300,000 | 233,317 | ||
Can-Pack S.A./Eastern PA Land Investment Holding LLC, 3.875%, 11/15/2029 (n) | $ | 834,000 | 654,690 | |
San Miguel Industrias PET S.A., 3.5%, 8/02/2028 (n) | 840,000 | 684,293 | ||
Titan Holdings II B.V., 5.125%, 7/15/2029 (n) | EUR | 635,000 | 524,883 | |
$ 2,237,174 | ||||
Emerging Market Quasi-Sovereign – 1.7% | ||||
Bulgarian Energy Holding EAD, 2.45%, 7/22/2028 | EUR | 870,000 | $754,848 | |
Petroleos Mexicanos, 6.5%, 3/13/2027 | $ | 545,000 | 480,745 | |
Petroleos Mexicanos, 6.84%, 1/23/2030 | 450,000 | 350,437 | ||
Petroleos Mexicanos, 10%, 2/07/2033 | 560,000 | 495,182 | ||
Petroleos Mexicanos, 6.5%, 6/02/2041 | 1,335,000 | 789,817 | ||
Petroleos Mexicanos, 7.69%, 1/23/2050 | 740,000 | 457,008 | ||
$ 3,328,037 | ||||
Energy - Integrated – 0.2% | ||||
Citgo Petroleum Corp., 8.375%, 1/15/2029 (n) | $ | 382,000 | $378,318 | |
Entertainment – 0.1% | ||||
Motion Finco S.à r.l., 7.375%, 6/15/2030 (n) | EUR | 210,000 | $211,338 | |
Financial Institutions – 1.0% | ||||
Citycon Treasury B.V., 1.625%, 3/12/2028 | EUR | 450,000 | $367,277 | |
Encore Capital Group, Inc., 5.375%, 2/15/2026 (n) | GBP | 335,000 | 370,937 | |
Encore Capital Group, Inc., 4.25%, 6/01/2028 (n) | 390,000 | 365,000 | ||
Globalworth Ltd., REIT, 2.95%, 7/29/2026 | EUR | 515,000 | 418,377 | |
Samhallsbyggnadsbolaget i Norden AB, 2.375%, 9/04/2026 | 373,000 | 283,535 | ||
Samhallsbyggnadsbolaget i Norden AB, 2.875% to 1/30/2027, FLR (EUR Swap Rate - 5yr. + 3.223%) to 1/30/32, FLR (EUR Swap Rate - 5yr. + 3.473%) to 1/30/47, FLR (EUR Swap Rate - 5yr. + 4.473%) to 1/30/2171 | 805,000 | 136,283 | ||
$ 1,941,409 | ||||
Food & Beverages – 0.6% | ||||
Aragvi Finance International DAC, 8.45%, 4/29/2026 (n) | $ | 400,000 | $271,048 | |
Central America Bottling Co., 5.25%, 4/27/2029 (n) | 716,000 | 630,080 | ||
Minerva Luxembourg S.A., 4.375%, 3/18/2031 (n) | 457,000 | 354,499 | ||
$ 1,255,627 | ||||
Gaming & Lodging – 1.3% | ||||
Allwyn International, 3.875%, 2/15/2027 (n) | EUR | 665,000 | $647,619 | |
Allwyn International A.S., 3.875%, 2/15/2027 | 445,000 | 433,369 | ||
NH Hotel Group S.A., 4%, 7/02/2026 (n) | 415,000 | 417,046 | ||
NH Hotel Group S.A., 4%, 7/02/2026 | 325,000 | 326,602 | ||
Playtech PLC, 5.875%, 6/28/2028 | 600,000 | 611,688 | ||
$ 2,436,324 | ||||
Industrial – 0.1% | ||||
Albion Financing 1 S.à r.l., 5.25%, 10/15/2026 | EUR | 228,000 | $227,978 | |
International Market Quasi-Sovereign – 0.6% | ||||
Electricite de France S.A., 3.375% to 9/15/2030, FLR (EUR Swap Rate - 5yr. + 3.97%) to 9/15/50, FLR (EUR Swap Rate - 5yr. + 4.72%) to 9/15/2071 | EUR | 1,000,000 | $812,092 | |
Electricite de France S.A., 9.125% to 6/15/2033, FLR (CMT - 5yr. + 5.411%) to 12/15/2171 (n) | $ | 280,000 | 287,383 | |
$ 1,099,475 |
2
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Machinery & Tools – 0.6% | ||||
Kapla Holding S.A.S., 3.375%, 12/15/2026 | EUR | 613,000 | $573,849 | |
Sarens Finance Co. N.V., 5.75%, 2/21/2027 | 555,000 | 507,557 | ||
$ 1,081,406 | ||||
Major Banks – 0.3% | ||||
UniCredit S.p.A., 3.875% to 6/03/2027, FLR (EUR ICE Swap Rate - 5yr. + 4.081%) to 6/03/2070 | EUR | 645,000 | $504,178 | |
Medical & Health Technology & Services – 0.3% | ||||
Laboratoire Eimer Selas, 5%, 2/01/2029 | EUR | 594,000 | $485,525 | |
Metals & Mining – 0.4% | ||||
Baffinland Iron Mines Corp./Baffinland Iron Mines LP, 8.75%, 7/15/2026 (n) | $ | 140,000 | $134,572 | |
Novelis Sheet Ingot GmbH, 3.375%, 4/15/2029 (n) | EUR | 460,000 | 414,174 | |
Petra Diamonds US$ Treasury PLC, 9.75%, 3/08/2026 (n)(p) | $ | 359,667 | 305,717 | |
$ 854,463 | ||||
Midstream – 0.3% | ||||
Peru LNG, 5.375%, 3/22/2030 | $ | 645,000 | $494,099 | |
Natural Gas - Distribution – 0.2% | ||||
Eustream A.S., 1.625%, 6/25/2027 | EUR | 367,000 | $309,890 | |
Network & Telecom – 0.7% | ||||
Iliad Holding S.A.S., 5.625%, 10/15/2028 (n) | EUR | 580,000 | $578,796 | |
Kaixo Bondco Telecom S.A., 5.125%, 9/30/2029 (n) | 835,000 | 784,251 | ||
$ 1,363,047 | ||||
Oils – 0.4% | ||||
MC Brazil Downstream Trading S.à r.l., 7.25%, 6/30/2031 (n) | $ | 736,284 | $523,866 | |
Puma International Financing S.A., 5%, 1/24/2026 | 200,000 | 179,704 | ||
$ 703,570 | ||||
Other Banks & Diversified Financials – 0.5% | ||||
Banco GNB Sudameris S.A., 7.5% to 4/16/2026, FLR (CMT - 5yr. + 6.66%) to 4/16/2031 | $ | 755,000 | $580,218 | |
Intesa Sanpaolo S.p.A., 4.125% to 2/27/2030, FLR (EUR Swap Rate - 5yr. + 4.274%) to 2/27/2070 | EUR | 645,000 | 474,606 | |
$ 1,054,824 | ||||
Pharmaceuticals – 1.2% | ||||
Cheplapharm Arzneimittel GmbH, 4.375%, 1/15/2028 | EUR | 457,000 | $439,428 | |
Cheplapharm Arzneimittel GmbH, 7.5%, 5/15/2030 (n) | 345,000 | 363,314 | ||
Grifols S.A., 3.2%, 5/01/2025 | 457,000 | 463,001 | ||
Organon Finance 1 LLC, 2.875%, 4/30/2028 (n) | 235,000 | 214,637 | ||
Teva Pharmaceutical Finance Netherlands III B.V., 4.75%, 5/09/2027 | $ | 825,000 | 749,049 | |
$ 2,229,429 | ||||
Precious Metals & Minerals – 0.2% | ||||
Eldorado Gold Corp., 6.25%, 9/01/2029 (n) | $ | 342,000 | $293,261 | |
Restaurants – 0.2% | ||||
MIDCO GB, 7.75%, 11/01/2027 (n) | EUR | 465,000 | $456,796 | |
Retailers – 0.6% | ||||
Grupo Axo S.A.P.I. de C.V., 5.75%, 6/08/2026 (n) | $ | 844,000 | $737,066 | |
Mobilux Finance S.A.S., 4.25%, 7/15/2028 (n) | EUR | 575,000 | 500,330 | |
$ 1,237,396 |
3
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Specialty Chemicals – 0.3% | ||||
CTEC II GmbH, 5.25%, 2/15/2030 (n) | EUR | 453,000 | $387,775 | |
CTEC II GmbH, 5.25%, 2/15/2030 | 325,000 | 278,205 | ||
$ 665,980 | ||||
Specialty Stores – 0.5% | ||||
Dufry One B.V., 3.375%, 4/15/2028 | EUR | 1,090,000 | $1,021,600 | |
Supermarkets – 0.5% | ||||
Ocado Group PLC, 3.875%, 10/08/2026 | GBP | 462,000 | $439,403 | |
Picard Bondco S.A., 5.375%, 7/01/2027 | EUR | 594,000 | 553,939 | |
$ 993,342 | ||||
Telecommunications - Wireless – 2.7% | ||||
Altice France Holding S.A., 4%, 2/15/2028 | EUR | 100,000 | $46,477 | |
Altice France S.A., 4%, 2/15/2028 (n) | 380,000 | 176,613 | ||
Cellnex Finance Co. S.A., 1.5%, 6/08/2028 | 900,000 | 817,177 | ||
Cellnex Finance Co. S.A., 2%, 2/15/2033 | 700,000 | 562,887 | ||
Millicom International Cellular S.A., 5.125%, 1/15/2028 (n) | $ | 977,400 | 844,387 | |
PLT VII Finance S.à r.l., 4.625%, 1/05/2026 | EUR | 642,000 | 655,525 | |
PPF Telecom Group B.V., 2.125%, 1/31/2025 | 270,000 | 274,870 | ||
PPF Telecom Group B.V., 3.25%, 9/29/2027 | 733,000 | 716,449 | ||
VMED O2 UK Financing I PLC, 4%, 1/31/2029 | GBP | 549,000 | 551,342 | |
Vodafone Group PLC, 3% to 8/27/2030, FLR (EUR Swap Rate - 5yr. + 3.477%) to 8/27/2050, FLR (EUR Swap Rate - 5yr. + 4.227%) to 8/27/2080 | EUR | 705,000 | 601,617 | |
$ 5,247,344 | ||||
Transportation - Services – 1.3% | ||||
Acu Petroleo Luxembourg S.à r.l., 7.5%, 1/13/2032 | $ | 446,637 | $403,069 | |
Arena Luxembourg Finance S.à r.l., 1.875%, 2/01/2028 (n) | EUR | 1,180,000 | 1,026,315 | |
Arena Luxembourg Finance S.à r.l., 1.875%, 2/01/2028 | 100,000 | 86,976 | ||
Cliffton Ltd., 6.25%, 10/25/2025 (n) | $ | 663,000 | 640,604 | |
Hidrovias International Finance S.à r.l., 4.95%, 2/08/2031 | 440,000 | 339,245 | ||
$ 2,496,209 | ||||
Utilities - Electric Power – 4.0% | ||||
Adani Green Energy (UP) Ltd./Prayatna Developers Private Ltd., 6.25%, 12/10/2024 (n) | $ | 761,000 | $729,053 | |
AES Gener S.A., 7.125% to 7/06/2024, FLR (Swap Rate - 5yr. + 4.644%) to 7/06/2029, FLR (Swap Rate - 5yr. + 4.894%) to 7/06/2044, FLR (Swap Rate - 5yr. + 5.644%) to 3/26/2079 | 595,000 | 559,709 | ||
Azure Power Energy Ltd., 3.575%, 8/19/2026 (n) | 470,389 | 390,423 | ||
Azure Power Solar Energy Private Ltd., 5.65%, 12/24/2024 (n) | 302,000 | 277,176 | ||
ContourGlobal Power Holdings S.A., 2.75%, 1/01/2026 (n) | EUR | 640,000 | 608,159 | |
ContourGlobal Power Holdings S.A., 3.125%, 1/01/2028 | 258,000 | 220,789 | ||
Electricidad Firme de Mexico, 4.9%, 11/20/2026 (n) | $ | 752,000 | 651,420 | |
Empresa Generadora de Electricidad Haina S.A., 5.625%, 11/08/2028 (n) | 570,000 | 491,625 | ||
Greenko Dutch B.V. (Republic of India), 3.85%, 3/29/2026 (n) | 683,575 | 608,382 | ||
Investment Energy Resources Ltd., 6.25%, 4/26/2029 (n) | 718,000 | 632,235 | ||
Mercury Chile Holdco LLC, 6.5%, 1/24/2027 (n) | 687,000 | 615,279 | ||
Mong Duong Finance Holdings B.V., 5.125%, 5/07/2029 (n) | 689,000 | 622,856 | ||
ReNew Wind Energy AP2/ReNew Power Private Ltd., 4.5%, 7/14/2028 (n) | 729,000 | 596,358 | ||
TerraForm Global Operating LLC, 6.125%, 3/01/2026 (n) | 836,000 | 803,668 | ||
$ 7,807,132 | ||||
Utilities - Gas – 0.4% | ||||
EP Infrastructure A.S., 2.045%, 10/09/2028 | EUR | 200,000 | $170,376 | |
EP Infrastructure A.S., 1.816%, 3/02/2031 | 917,000 | 694,183 | ||
$ 864,559 |
4
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Utilities - Other – 0.5% | ||||
Aegea Finance S.à r.l., 6.75%, 5/20/2029 (n) | $ | 1,136,000 | $1,039,609 | |
Total Bonds | $ 57,344,183 | |||
Investment Companies (h) – 70.2% | ||||
Bond Funds – 66.5% | ||||
MFS High Yield Pooled Portfolio (v) | 16,728,369 | $128,975,727 | ||
Money Market Funds – 3.7% | ||||
MFS Institutional Money Market Portfolio, 5.43% (v) | 7,252,274 | $7,252,999 | ||
Total Investment Companies | $136,228,726 |
Underlying/Expiration Date/Exercise Price | Put/Call | Counterparty | Notional Amount | Par Amount/ Number of Contracts | |
Purchased Options – 0.0% | |||||
Market Index Securities – 0.0% | |||||
Russell 2000 Index – December 2024 @ $1,500 | Put | Exchange Traded | $ 1,163,597 | 7 | $48,300 |
Other Assets, Less Liabilities – 0.2% | 349,291 | |||
Net Assets – 100.0% | $193,970,500 |
(h) | An affiliated issuer, which may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of the fund's investments in affiliated issuers and in unaffiliated issuers were $136,228,726 and $57,392,483, respectively. | |||
(n) | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate value of these securities was $29,027,838, representing 15.0% of net assets. | |||
(p) | Payment-in-kind (PIK) security for which interest income may be received in additional securities and/or cash. | |||
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
The following abbreviations are used in this report and are defined: | |
CMT | Constant Maturity Treasury |
FLR | Floating Rate. Interest rate resets periodically based on the parenthetically disclosed reference rate plus a spread (if any). The period-end rate reported may not be the current rate. All reference rates are USD unless otherwise noted. |
ICE | Intercontinental Exchange |
REIT | Real Estate Investment Trust |
Abbreviations indicate amounts shown in currencies other than the U.S. dollar. All amounts are stated in U.S. dollars unless otherwise indicated. A list of abbreviations is shown below: | |
EUR | Euro |
GBP | British Pound |
Derivative Contracts at 10/31/23 | ||||||
Forward Foreign Currency Exchange Contracts | ||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||
Asset Derivatives | ||||||
EUR | 887,436 | USD | 938,507 | JPMorgan Chase Bank N.A. | 1/19/2024 | $4,076 |
EUR | 632,159 | USD | 671,113 | State Street Bank Corp. | 1/19/2024 | 330 |
GBP | 16,667 | USD | 20,219 | State Street Bank Corp. | 1/19/2024 | 51 |
USD | 34,055,981 | EUR | 32,033,712 | Barclays Bank PLC | 1/19/2024 | 31,630 |
USD | 2,752,947 | GBP | 2,258,547 | Deutsche Bank AG | 1/19/2024 | 5,989 |
$42,076 |
5
Portfolio of Investments (unaudited) – continued
Forward Foreign Currency Exchange Contracts − continued | ||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||
Liability Derivatives | ||||||
USD | 864,710 | EUR | 815,477 | Barclays Bank PLC | 1/19/2024 | $(1,442) |
USD | 586,611 | EUR | 553,558 | Citibank N.A. | 1/19/2024 | (1,346) |
USD | 101,776 | GBP | 83,813 | UBS AG | 1/19/2024 | (162) |
$(2,950) |
Futures Contracts | ||||||
Description | Long/ Short | Currency | Contracts | Notional Amount | Expiration Date | Value/Unrealized Appreciation (Depreciation) |
Asset Derivatives | ||||||
Interest Rate Futures | ||||||
Long Gilt 10 yr | Short | GBP | 2 | $226,463 | December – 2023 | $2,765 |
At October 31, 2023, the fund had cash collateral of $9,300 to cover any collateral or margin obligations for certain derivative contracts.
See attached supplemental information. For more information see notes to financial statements as disclosed in the most recent semiannual or annual report.
6
Supplemental Information
10/31/23 (unaudited)
The fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services - Investment Companies.
(1) Investment Valuations
The investments of the fund and the MFS High Yield Pooled Portfolio are valued as described below.
Subject to its oversight, the fund's Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of the fund’s investments to MFS as the fund's adviser, pursuant to the fund’s valuation policy and procedures which have been adopted by the adviser and approved by the Board. In accordance with Rule 2a-5 under the Investment Company Act of 1940, the Board of Trustees designated the adviser as the “valuation designee” of the fund. If the adviser, as valuation designee, determines that reliable market quotations are not readily available for an investment, the investment is valued at fair value as determined in good faith by the adviser in accordance with the adviser’s fair valuation policy and procedures.
Under the fund's valuation policy and procedures, debt instruments and floating rate loans, including restricted debt instruments, are generally valued at an evaluated or composite bid as provided by a third-party pricing service. Short-term instruments with a maturity at issuance of 60 days or less may be valued at amortized cost, which approximates market value. Exchange-traded options are generally valued at the last sale or official closing price on their primary exchange as provided by a third-party pricing service. Exchange-traded options for which there were no sales reported that day are generally valued at the last daily bid quotation on their primary exchange as provided by a third-party pricing service. For put options, the position may be valued at the last daily ask quotation if there are no trades reported during the day. Options not traded on an exchange are generally valued at a broker/dealer bid quotation. Foreign currency options are generally valued at valuations provided by a third-party pricing service. Futures contracts are generally valued at last posted settlement price on their primary exchange as provided by a third-party pricing service. Futures contracts for which there were no trades that day for a particular position are generally valued at the closing bid quotation on their primary exchange as provided by a third-party pricing service. Forward foreign currency exchange contracts are generally valued at the mean of bid and asked prices for the time period interpolated from rates provided by a third-party pricing service for proximate time periods. Open-end investment companies are generally valued at net asset value per share. The values of foreign securities and other assets and liabilities expressed in foreign currencies are converted to U.S. dollars using the mean of bid and asked prices for rates provided by a third-party pricing service.
Under the fund’s valuation policy and procedures, market quotations are not considered to be readily available for debt instruments, floating rate loans, and many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services or otherwise determined by the adviser in accordance with the adviser’s fair valuation policy and procedures. Securities and other assets generally valued on the basis of information from a third-party pricing service may also be valued at a broker/dealer bid quotation. In determining values, third-party pricing services can utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics, spreads and other market data. An investment may also be valued at fair value if the adviser determines that the investment’s value has been materially affected by events occurring after the close of the exchange or market on which the investment is principally traded (such as foreign exchange or market) and prior to the determination of the fund’s net asset value, or after the halt of trading of a specific security where trading does not resume prior to the close of the exchange or market on which the security is principally traded. The adviser generally relies on third-party pricing services or other information (such as the correlation with price movements of similar securities in the same or other markets; the type, cost and investment characteristics of the security; the business and financial condition of the issuer; and trading and other market data) to assist in determining whether to fair value and at what value to fair value an investment. The value of an investment for purposes of calculating the fund’s net asset value can differ depending on the source and method used to determine value. When fair valuation is used, the value of an investment used to determine the fund’s net asset value may differ from quoted or published prices for the same investment. There can be no assurance that the fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the fund determines its net asset value per share.
Various inputs are used in determining the value of the fund's assets or liabilities. These inputs are categorized into three broad levels. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fund's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk).
7
Supplemental Information (unaudited) – continued
Level 3 includes significant unobservable inputs, which may include the adviser's own assumptions in determining the fair value of investments. Other financial instruments are derivative instruments, such as futures contracts and forward foreign currency exchange contracts. The following is a summary of the levels used as of October 31, 2023 in valuing the fund's assets and liabilities:
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
Equity Securities | $48,300 | $— | $— | $48,300 |
Non - U.S. Sovereign Debt | — | 4,427,512 | — | 4,427,512 |
U.S. Corporate Bonds | — | 3,881,921 | — | 3,881,921 |
Asset-Backed Securities (including CDOs) | — | 700,381 | — | 700,381 |
Foreign Bonds | — | 48,334,369 | — | 48,334,369 |
Mutual Funds | 136,228,726 | — | — | 136,228,726 |
Total | $136,277,026 | $57,344,183 | $— | $193,621,209 |
Other Financial Instruments | ||||
Futures Contracts – Assets | $2,765 | $— | $— | $2,765 |
Forward Foreign Currency Exchange Contracts – Assets | — | 42,076 | — | 42,076 |
Forward Foreign Currency Exchange Contracts – Liabilities | — | (2,950) | — | (2,950) |
For further information regarding security characteristics, see the Portfolio of Investments. Please refer to the MFS High Yield Pooled Portfolio's shareholder report for further information regarding the levels used in valuing its assets and liabilities.
The following is a reconciliation of level 3 assets for which significant unobservable inputs were used to determine fair value. The table presents the activity of level 3 securities held at the beginning and the end of the period.
Equity Securities | |
Balance as of 1/31/23 | $228,697 |
Realized gain (loss) | 270,760 |
Change in unrealized appreciation or depreciation | (228,697) |
Sales | (270,760) |
Balance as of 10/31/23 | $— |
(2) Investments in Affiliated Issuers
An affiliated issuer may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. For the purposes of this report, the following were affiliated issuers:
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS High Yield Pooled Portfolio | $121,247,426 | $29,874,429 | $16,835,066 | $(4,040,572) | $(1,270,490) | $128,975,727 |
MFS Institutional Money Market Portfolio | 3,151,528 | 49,492,701 | 45,390,541 | (994) | 305 | 7,252,999 |
$124,398,954 | $79,367,130 | $62,225,607 | $(4,041,566) | $(1,270,185) | $136,228,726 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS High Yield Pooled Portfolio | $6,238,690 | $— |
MFS Institutional Money Market Portfolio | 288,561 | — |
$6,527,251 | $— |
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Supplemental Information (unaudited) – continued
(3) Issuer Country Weightings
Issuer country weighting percentages of portfolio holdings based on net assets, as of October 31, 2023, are as follows:
United States | 62.0% |
Canada | 4.0% |
France | 3.8% |
United Kingdom | 3.5% |
Mexico | 2.5% |
Spain | 2.3% |
Brazil | 2.0% |
India | 1.7% |
Netherlands | 1.7% |
Other Countries | 16.5% |
These issuer country weighting percentages include both accrued interest amounts and the equivalent exposure from any derivative holdings, if applicable. Percentages reflect exposure to the underlying fund holdings including cash & cash equivalents.
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