UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-03090
MFS SERIES TRUST VII
(Exact name of registrant as specified in charter)
111 Huntington Avenue, Boston, Massachusetts 02199
(Address of principal executive offices) (Zip code)
Christopher R. Bohane
Massachusetts Financial Services Company
111 Huntington Avenue
Boston, Massachusetts 02199
(Name and address of agents for service)
Registrant's telephone number, including area code: (617) 954-5000
Date of fiscal year end: July 31*
Date of reporting period: July 31, 2021
*This Form N-CSR pertains to the following series of the Registrant: MFS Equity Income Fund, MFS Emerging Markets Equity Research Fund, and MFS Intrinsic Value Fund. MFS Intrinsic Value Fund commenced investment operations on February 8, 2022.
ITEM 1. REPORTS TO STOCKHOLDERS.
Item 1(a):
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53 |
back cover |
Microsoft Corp. | 6.8% |
Apple, Inc. | 4.6% |
Merck & Co., Inc. | 3.0% |
Alphabet, Inc., “A” | 2.8% |
McKesson Corp. | 2.6% |
Cigna Corp. | 2.5% |
JPMorgan Chase & Co. | 2.5% |
Valero Energy Corp. | 2.4% |
Texas Instruments, Inc. | 2.3% |
Home Depot, Inc. | 2.2% |
Financials | 18.0% |
Information Technology | 17.9% |
Health Care | 14.4% |
Industrials | 8.9% |
Energy | 6.9% |
Real Estate | 6.0% |
Consumer Discretionary | 5.7% |
Consumer Staples | 5.2% |
Communication Services | 4.8% |
Materials | 4.6% |
Utilities | 3.5% |
Convertible Debt | 2.6% |
(g) | 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. |
(b) | Security is not a benchmark constituent. |
(h) | Security was not held in the portfolio at period end. |
Share Class | Class Inception Date | 1-yr | 5-yr | Life (t) |
A | 9/27/12 | (1.60)% | 9.50% | 10.66% |
B | 9/27/12 | (2.32)% | 8.69% | 9.83% |
C | 9/27/12 | (2.37)% | 8.68% | 9.84% |
I | 9/27/12 | (1.36)% | 9.77% | 10.93% |
R1 | 9/27/12 | (2.32)% | 8.70% | 9.83% |
R2 | 9/27/12 | (1.89)% | 9.23% | 10.37% |
R3 | 9/27/12 | (1.61)% | 9.50% | 10.65% |
R4 | 9/27/12 | (1.40)% | 9.78% | 10.92% |
R6 | 9/27/12 | (1.28)% | 9.88% | 11.09% |
Standard & Poor's 500 Stock Index (f) | (4.64)% | 12.83% | 13.53% |
A With Initial Sales Charge (5.75%) | (7.26)% | 8.22% | 9.99% |
B With CDSC (Declining over six years from 4% to 0%) (v) | (5.96)% | 8.40% | 9.83% |
C With CDSC (1% for 12 months) (v) | (3.27)% | 8.68% | 9.84% |
(f) | Source: FactSet Research Systems Inc. |
(t) | For the period from the class inception date through the stated period end. (See Notes to Performance Summary.) |
(v) | Assuming redemption at the end of the applicable period. |
(g) | “Standard & Poor's®” and “S&P®” are registered trademarks of Standard & Poor's Financial Services LLC (“S&P”) and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and sublicensed for certain purposes by MFS. The S&P 500® is a product of S&P Dow Jones Indices LLC, and has been licensed for use by MFS. MFS's product(s) is not sponsored, endorsed, sold, or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates, and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing in such product(s). |
February 1, 2022 through July 31, 2022
Share Class | Annualized Expense Ratio | Beginning Account Value 2/01/22 | Ending Account Value 7/31/22 | Expenses Paid During Period (p) 2/01/22-7/31/22 | |
A | Actual | 0.89% | $1,000.00 | $945.80 | $4.29 |
Hypothetical (h) | 0.89% | $1,000.00 | $1,020.38 | $4.46 | |
B | Actual | 1.64% | $1,000.00 | $942.38 | $7.90 |
Hypothetical (h) | 1.64% | $1,000.00 | $1,016.66 | $8.20 | |
C | Actual | 1.64% | $1,000.00 | $941.90 | $7.90 |
Hypothetical (h) | 1.64% | $1,000.00 | $1,016.66 | $8.20 | |
I | Actual | 0.64% | $1,000.00 | $946.53 | $3.09 |
Hypothetical (h) | 0.64% | $1,000.00 | $1,021.62 | $3.21 | |
R1 | Actual | 1.64% | $1,000.00 | $942.47 | $7.90 |
Hypothetical (h) | 1.64% | $1,000.00 | $1,016.66 | $8.20 | |
R2 | Actual | 1.13% | $1,000.00 | $944.29 | $5.45 |
Hypothetical (h) | 1.13% | $1,000.00 | $1,019.19 | $5.66 | |
R3 | Actual | 0.89% | $1,000.00 | $945.16 | $4.29 |
Hypothetical (h) | 0.89% | $1,000.00 | $1,020.38 | $4.46 | |
R4 | Actual | 0.64% | $1,000.00 | $946.19 | $3.09 |
Hypothetical (h) | 0.64% | $1,000.00 | $1,021.62 | $3.21 | |
R6 | Actual | 0.55% | $1,000.00 | $947.32 | $2.66 |
Hypothetical (h) | 0.55% | $1,000.00 | $1,022.07 | $2.76 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 95.4% | ||||
Aerospace & Defense – 2.8% | ||||
General Dynamics Corp. | 32,879 | $7,452,683 | ||
Honeywell International, Inc. | 11,960 | 2,301,822 | ||
$9,754,505 | ||||
Biotechnology – 0.6% | ||||
Gilead Sciences, Inc. | 37,320 | $2,229,870 | ||
Brokerage & Asset Managers – 1.5% | ||||
Invesco Ltd. | 36,658 | $650,313 | ||
Raymond James Financial, Inc. | 28,148 | 2,771,733 | ||
TPG, Inc. | 63,928 | 1,823,227 | ||
$5,245,273 | ||||
Business Services – 1.1% | ||||
Accenture PLC, “A” | 6,976 | $2,136,470 | ||
Cognizant Technology Solutions Corp., “A” | 24,386 | 1,657,272 | ||
$3,793,742 | ||||
Cable TV – 1.0% | ||||
Comcast Corp., “A” | 89,499 | $3,358,002 | ||
Chemicals – 0.5% | ||||
Nutrien Ltd. | 21,772 | $1,864,989 | ||
Computer Software – 6.8% | ||||
Microsoft Corp. | 84,018 | $23,587,213 | ||
Computer Software - Systems – 5.1% | ||||
Apple, Inc. | 99,133 | $16,110,104 | ||
Hitachi Ltd. | 34,500 | 1,750,660 | ||
$17,860,764 | ||||
Consumer Services – 0.9% | ||||
Booking Holdings, Inc. (a) | 1,130 | $2,187,330 | ||
Expedia Group, Inc. (a) | 8,840 | 937,482 | ||
$3,124,812 | ||||
Electrical Equipment – 1.2% | ||||
Johnson Controls International PLC | 77,087 | $4,155,760 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Electronics – 4.7% | ||||
Applied Materials, Inc. | 11,030 | $1,168,959 | ||
Intel Corp. | 40,427 | 1,467,904 | ||
Lam Research Corp. | 4,040 | 2,022,060 | ||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 38,047 | 3,366,399 | ||
Texas Instruments, Inc. | 45,512 | 8,141,642 | ||
$16,166,964 | ||||
Energy - Independent – 2.4% | ||||
Valero Energy Corp. | 74,122 | $8,210,494 | ||
Energy - Integrated – 0.9% | ||||
Eni S.p.A. | 125,238 | $1,506,239 | ||
Exxon Mobil Corp. | 14,899 | 1,444,160 | ||
$2,950,399 | ||||
Food & Beverages – 1.3% | ||||
Archer Daniels Midland Co. | 31,755 | $2,628,361 | ||
Nestle S.A. | 16,337 | 2,006,531 | ||
$4,634,892 | ||||
Food & Drug Stores – 2.0% | ||||
Wal-Mart Stores, Inc. | 51,543 | $6,806,253 | ||
Forest & Paper Products – 1.5% | ||||
Weyerhaeuser Co., REIT | 142,396 | $5,171,823 | ||
Gaming & Lodging – 0.7% | ||||
International Game Technology PLC | 122,580 | $2,322,891 | ||
Health Maintenance Organizations – 2.5% | ||||
Cigna Corp. | 31,942 | $8,795,549 | ||
Insurance – 6.8% | ||||
Ameriprise Financial, Inc. | 12,474 | $3,366,982 | ||
Equitable Holdings, Inc. | 181,367 | 5,156,264 | ||
Everest Re Group Ltd. | 5,260 | 1,374,701 | ||
Fairfax Financial Holdings Ltd. | 2,567 | 1,382,778 | ||
Hartford Financial Services Group, Inc. | 23,800 | 1,534,386 | ||
Manulife Financial Corp. | 238,310 | 4,365,839 | ||
MetLife, Inc. | 61,187 | 3,870,078 | ||
Zurich Insurance Group AG | 5,793 | 2,528,713 | ||
$23,579,741 | ||||
Internet – 2.8% | ||||
Alphabet, Inc., “A” (a) | 85,040 | $9,891,853 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Leisure & Toys – 1.3% | ||||
Brunswick Corp. | 12,365 | $990,684 | ||
Nintendo Co. Ltd. | 7,800 | 3,507,208 | ||
$4,497,892 | ||||
Machinery & Tools – 1.8% | ||||
Eaton Corp. PLC | 21,575 | $3,201,514 | ||
Volvo Group | 164,971 | 2,957,269 | ||
$6,158,783 | ||||
Major Banks – 8.1% | ||||
Bank of America Corp. | 147,180 | $4,976,156 | ||
BNP Paribas | 91,268 | 4,326,124 | ||
JPMorgan Chase & Co. | 74,836 | 8,633,081 | ||
Morgan Stanley | 24,960 | 2,104,128 | ||
UBS Group AG | 216,986 | 3,553,769 | ||
Wells Fargo & Co. | 106,719 | 4,681,762 | ||
$28,275,020 | ||||
Medical & Health Technology & Services – 2.6% | ||||
McKesson Corp. | 26,328 | $8,993,118 | ||
Metals & Mining – 2.8% | ||||
Glencore PLC | 631,324 | $3,567,871 | ||
Rio Tinto PLC | 104,377 | 6,282,325 | ||
$9,850,196 | ||||
Natural Gas - Pipeline – 3.7% | ||||
Enbridge, Inc. | 86,920 | $3,903,611 | ||
Enterprise Products Partners LP | 184,152 | 4,922,383 | ||
Equitrans Midstream Corp. | 211,504 | 1,660,306 | ||
Pembina Pipeline Corp. | 41,673 | 1,591,030 | ||
Plains All American Pipeline LP | 77,594 | 856,638 | ||
$12,933,968 | ||||
Other Banks & Diversified Financials – 1.8% | ||||
SLM Corp. | 131,370 | $2,049,372 | ||
Visa, Inc., “A” | 3,540 | 750,869 | ||
Zions Bancorp NA | 65,681 | 3,582,899 | ||
$6,383,140 | ||||
Pharmaceuticals – 8.6% | ||||
Bayer AG | 51,166 | $2,980,769 | ||
Johnson & Johnson | 35,038 | 6,114,832 | ||
Merck & Co., Inc. | 115,013 | 10,275,262 | ||
Organon & Co. | 55,685 | 1,766,328 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Pharmaceuticals – continued | ||||
Pfizer, Inc. | 73,283 | $3,701,524 | ||
Roche Holding AG | 14,980 | 4,974,569 | ||
$29,813,284 | ||||
Railroad & Shipping – 0.5% | ||||
CSX Corp. | 53,679 | $1,735,442 | ||
Real Estate – 4.5% | ||||
Extra Space Storage, Inc., REIT | 35,530 | $6,733,646 | ||
National Retail Properties, Inc., REIT | 36,995 | 1,761,332 | ||
National Storage Affiliates Trust, REIT | 29,454 | 1,615,257 | ||
Phillips Edison & Co., REIT | 101,473 | 3,454,141 | ||
Spirit Realty Capital, Inc., REIT | 49,886 | 2,211,945 | ||
$15,776,321 | ||||
Restaurants – 0.9% | ||||
Starbucks Corp. | 38,455 | $3,260,215 | ||
Specialty Chemicals – 1.2% | ||||
Chemours Co. | 120,959 | $4,304,931 | ||
Specialty Stores – 2.9% | ||||
Amazon.com, Inc. (a) | 19,970 | $2,694,952 | ||
Home Depot, Inc. | 24,930 | 7,502,434 | ||
$10,197,386 | ||||
Tobacco – 1.9% | ||||
British American Tobacco PLC | 43,190 | $1,697,467 | ||
Japan Tobacco, Inc. | 123,900 | 2,221,590 | ||
Philip Morris International, Inc. | 29,341 | 2,850,478 | ||
$6,769,535 | ||||
Trucking – 2.2% | ||||
United Parcel Service, Inc., “B” | 38,327 | $7,469,549 | ||
Utilities - Electric Power – 3.5% | ||||
Edison International | 40,334 | $2,733,435 | ||
Exelon Corp. | 160,028 | 7,439,702 | ||
Vistra Corp. | 74,818 | 1,934,045 | ||
$12,107,182 | ||||
Total Common Stocks (Identified Cost, $275,431,177) | $332,031,751 |
Issuer | Shares/Par | Value ($) | ||
Convertible Preferred Stocks – 2.6% | ||||
Medical Equipment – 2.6% | ||||
Boston Scientific Corp., 5.5% | 56,523 | $6,150,833 | ||
Danaher Corp., 5% | 2,000 | 3,043,700 | ||
Total Convertible Preferred Stocks (Identified Cost, $8,993,779) | $9,194,533 | |||
Preferred Stocks – 0.5% | ||||
Computer Software - Systems – 0.5% | ||||
Samsung Electronics Co. Ltd. (Identified Cost, $1,739,274) | 38,311 | $1,688,318 | ||
Investment Companies (h) – 1.2% | ||||
Money Market Funds – 1.2% | ||||
MFS Institutional Money Market Portfolio, 1.72% (v) (Identified Cost, $4,222,614) | 4,222,824 | $4,222,824 | ||
Other Assets, Less Liabilities – 0.3% | 886,861 | |||
Net Assets – 100.0% | $348,024,287 |
(a) | Non-income producing security. | |||
(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 $4,222,824 and $342,914,602, respectively. | |||
(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: | |
ADR | American Depositary Receipt |
REIT | Real Estate Investment Trust |
Assets | |
Investments in unaffiliated issuers, at value (identified cost, $286,164,230) | $342,914,602 |
Investments in affiliated issuers, at value (identified cost, $4,222,614) | 4,222,824 |
Receivables for | |
Fund shares sold | 500,138 |
Interest and dividends | 762,567 |
Receivable from investment adviser | 15,271 |
Other assets | 437 |
Total assets | $348,415,839 |
Liabilities | |
Payables for | |
Fund shares reacquired | $193,653 |
Payable to affiliates | |
Administrative services fee | 763 |
Shareholder servicing costs | 82,864 |
Distribution and service fees | 8,363 |
Payable for independent Trustees' compensation | 19 |
Accrued expenses and other liabilities | 105,890 |
Total liabilities | $391,552 |
Net assets | $348,024,287 |
Net assets consist of | |
Paid-in capital | $278,024,043 |
Total distributable earnings (loss) | 70,000,244 |
Net assets | $348,024,287 |
Shares of beneficial interest outstanding | 18,732,632 |
Net assets | Shares outstanding | Net asset value per share (a) | |
Class A | $233,755,422 | 12,595,607 | $18.56 |
Class B | 3,306,541 | 178,083 | 18.57 |
Class C | 14,440,468 | 777,982 | 18.56 |
Class I | 52,365,155 | 2,819,739 | 18.57 |
Class R1 | 740,034 | 39,752 | 18.62 |
Class R2 | 128,459 | 6,898 | 18.62 |
Class R3 | 1,917,574 | 103,131 | 18.59 |
Class R4 | 2,186,554 | 117,725 | 18.57 |
Class R6 | 39,184,080 | 2,093,715 | 18.72 |
(a) | Maximum offering price per share was equal to the net asset value per share for all share classes, except for Class A, for which the maximum offering price per share was $19.69 [100 / 94.25 x $18.56]. On sales of $50,000 or more, the maximum offering price of Class A shares is reduced. A contingent deferred sales charge may be imposed on redemptions of Class A, Class B, and Class C shares. Redemption price per share was equal to the net asset value per share for Classes I, R1, R2, R3, R4, and R6. |
Net investment income (loss) | |
Income | |
Dividends | $8,669,471 |
Dividends from affiliated issuers | 17,458 |
Other | 5,814 |
Income on securities loaned | 5,766 |
Foreign taxes withheld | (266,386) |
Total investment income | $8,432,123 |
Expenses | |
Management fee | $1,622,309 |
Distribution and service fees | 746,142 |
Shareholder servicing costs | 284,051 |
Administrative services fee | 57,419 |
Independent Trustees' compensation | 6,613 |
Custodian fee | 35,029 |
Shareholder communications | 29,106 |
Audit and tax fees | 60,031 |
Legal fees | 1,114 |
Registration fees | 162,692 |
Miscellaneous | 35,710 |
Total expenses | $3,040,216 |
Reduction of expenses by investment adviser and distributor | (275,674) |
Net expenses | $2,764,542 |
Net investment income (loss) | $5,667,581 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $18,036,720 |
Affiliated issuers | (291) |
Foreign currency | (47,570) |
Net realized gain (loss) | $17,988,859 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $(29,870,735) |
Affiliated issuers | 210 |
Translation of assets and liabilities in foreign currencies | (18,799) |
Net unrealized gain (loss) | $(29,889,324) |
Net realized and unrealized gain (loss) | $(11,900,465) |
Change in net assets from operations | $(6,232,884) |
Year ended | ||
7/31/22 | 7/31/21 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $5,667,581 | $4,474,083 |
Net realized gain (loss) | 17,988,859 | 17,517,614 |
Net unrealized gain (loss) | (29,889,324) | 56,162,729 |
Change in net assets from operations | $(6,232,884) | $78,154,426 |
Total distributions to shareholders | $(25,512,630) | $(8,020,112) |
Change in net assets from fund share transactions | $83,126,318 | $21,280,462 |
Total change in net assets | $51,380,804 | $91,414,776 |
Net assets | ||
At beginning of period | 296,643,483 | 205,228,707 |
At end of period | $348,024,287 | $296,643,483 |
Class A | Year ended | ||||
7/31/22 | 7/31/21 | 7/31/20 | 7/31/19 | 7/31/18 | |
Net asset value, beginning of period | $20.45 | $15.29 | $15.40 | $16.05 | $15.25 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.34 | $0.33 | $0.31 | $0.30 | $0.31 |
Net realized and unrealized gain (loss) | (0.60) | 5.42 | (0.06) | 0.00(w) | 1.32 |
Total from investment operations | $(0.26) | $5.75 | $0.25 | $0.30 | $1.63 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.31) | $(0.30) | $(0.32) | $(0.31) | $(0.34) |
From net realized gain | (1.32) | (0.29) | (0.04) | (0.64) | (0.49) |
Total distributions declared to shareholders | $(1.63) | $(0.59) | $(0.36) | $(0.95) | $(0.83) |
Net asset value, end of period (x) | $18.56 | $20.45 | $15.29 | $15.40 | $16.05 |
Total return (%) (r)(s)(t)(x) | (1.60) | 38.34 | 1.69 | 2.56 | 10.91 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.97 | 0.99 | 1.02 | 1.02 | 1.03 |
Expenses after expense reductions | 0.88 | 0.88 | 0.89 | 0.89 | 0.89 |
Net investment income (loss) | 1.72 | 1.81 | 2.05 | 1.97 | 1.95 |
Portfolio turnover | 42 | 43 | 42 | 39 | 51 |
Net assets at end of period (000 omitted) | $233,755 | $200,391 | $139,563 | $138,043 | $135,139 |
Class B | Year ended | ||||
7/31/22 | 7/31/21 | 7/31/20 | 7/31/19 | 7/31/18 | |
Net asset value, beginning of period | $20.45 | $15.29 | $15.39 | $16.03 | $15.23 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.19 | $0.19 | $0.20 | $0.19 | $0.19 |
Net realized and unrealized gain (loss) | (0.59) | 5.42 | (0.06) | 0.00(w) | 1.32 |
Total from investment operations | $(0.40) | $5.61 | $0.14 | $0.19 | $1.51 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.16) | $(0.16) | $(0.20) | $(0.19) | $(0.22) |
From net realized gain | (1.32) | (0.29) | (0.04) | (0.64) | (0.49) |
Total distributions declared to shareholders | $(1.48) | $(0.45) | $(0.24) | $(0.83) | $(0.71) |
Net asset value, end of period (x) | $18.57 | $20.45 | $15.29 | $15.39 | $16.03 |
Total return (%) (r)(s)(t)(x) | (2.32) | 37.26 | 0.92 | 1.86 | 10.07 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 1.72 | 1.74 | 1.77 | 1.77 | 1.78 |
Expenses after expense reductions | 1.63 | 1.63 | 1.64 | 1.64 | 1.64 |
Net investment income (loss) | 0.97 | 1.07 | 1.32 | 1.21 | 1.20 |
Portfolio turnover | 42 | 43 | 42 | 39 | 51 |
Net assets at end of period (000 omitted) | $3,307 | $3,911 | $3,534 | $4,604 | $4,378 |
Class C | Year ended | ||||
7/31/22 | 7/31/21 | 7/31/20 | 7/31/19 | 7/31/18 | |
Net asset value, beginning of period | $20.45 | $15.29 | $15.39 | $16.03 | $15.23 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.19 | $0.19 | $0.20 | $0.19 | $0.19 |
Net realized and unrealized gain (loss) | (0.60) | 5.42 | (0.06) | 0.00(w) | 1.32 |
Total from investment operations | $(0.41) | $5.61 | $0.14 | $0.19 | $1.51 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.16) | $(0.16) | $(0.20) | $(0.19) | $(0.22) |
From net realized gain | (1.32) | (0.29) | (0.04) | (0.64) | (0.49) |
Total distributions declared to shareholders | $(1.48) | $(0.45) | $(0.24) | $(0.83) | $(0.71) |
Net asset value, end of period (x) | $18.56 | $20.45 | $15.29 | $15.39 | $16.03 |
Total return (%) (r)(s)(t)(x) | (2.37) | 37.27 | 0.95 | 1.84 | 10.06 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 1.71 | 1.74 | 1.77 | 1.77 | 1.78 |
Expenses after expense reductions | 1.63 | 1.63 | 1.64 | 1.64 | 1.64 |
Net investment income (loss) | 0.97 | 1.07 | 1.31 | 1.21 | 1.20 |
Portfolio turnover | 42 | 43 | 42 | 39 | 51 |
Net assets at end of period (000 omitted) | $14,440 | $16,922 | $15,705 | $19,000 | $19,927 |
Class I | Year ended | ||||
7/31/22 | 7/31/21 | 7/31/20 | 7/31/19 | 7/31/18 | |
Net asset value, beginning of period | $20.46 | $15.30 | $15.41 | $16.06 | $15.26 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.39 | $0.37 | $0.35 | $0.34 | $0.34 |
Net realized and unrealized gain (loss) | (0.60) | 5.43 | (0.06) | 0.00(w) | 1.33 |
Total from investment operations | $(0.21) | $5.80 | $0.29 | $0.34 | $1.67 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.36) | $(0.35) | $(0.36) | $(0.35) | $(0.38) |
From net realized gain | (1.32) | (0.29) | (0.04) | (0.64) | (0.49) |
Total distributions declared to shareholders | $(1.68) | $(0.64) | $(0.40) | $(0.99) | $(0.87) |
Net asset value, end of period (x) | $18.57 | $20.46 | $15.30 | $15.41 | $16.06 |
Total return (%) (r)(s)(t)(x) | (1.36) | 38.66 | 1.95 | 2.82 | 11.18 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.72 | 0.73 | 0.77 | 0.77 | 0.78 |
Expenses after expense reductions | 0.63 | 0.63 | 0.64 | 0.64 | 0.64 |
Net investment income (loss) | 1.97 | 2.05 | 2.31 | 2.20 | 2.19 |
Portfolio turnover | 42 | 43 | 42 | 39 | 51 |
Net assets at end of period (000 omitted) | $52,365 | $40,722 | $21,344 | $23,261 | $13,878 |
Class R1 | Year ended | ||||
7/31/22 | 7/31/21 | 7/31/20 | 7/31/19 | 7/31/18 | |
Net asset value, beginning of period | $20.54 | $15.36 | $15.47 | $16.11 | $15.30 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.18 | $0.19 | $0.19 | $0.19 | $0.19 |
Net realized and unrealized gain (loss) | (0.58) | 5.45 | (0.05) | 0.01 | 1.33 |
Total from investment operations | $(0.40) | $5.64 | $0.14 | $0.20 | $1.52 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.20) | $(0.17) | $(0.21) | $(0.20) | $(0.22) |
From net realized gain | (1.32) | (0.29) | (0.04) | (0.64) | (0.49) |
Total distributions declared to shareholders | $(1.52) | $(0.46) | $(0.25) | $(0.84) | $(0.71) |
Net asset value, end of period (x) | $18.62 | $20.54 | $15.36 | $15.47 | $16.11 |
Total return (%) (r)(s)(t)(x) | (2.32) | 37.27 | 0.92 | 1.85 | 10.09 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 1.73 | 1.73 | 1.77 | 1.77 | 1.78 |
Expenses after expense reductions | 1.63 | 1.63 | 1.64 | 1.64 | 1.64 |
Net investment income (loss) | 0.93 | 1.06 | 1.28 | 1.21 | 1.20 |
Portfolio turnover | 42 | 43 | 42 | 39 | 51 |
Net assets at end of period (000 omitted) | $740 | $177 | $121 | $103 | $85 |
Class R2 | Year ended | ||||
7/31/22 | 7/31/21 | 7/31/20 | 7/31/19 | 7/31/18 | |
Net asset value, beginning of period | $20.51 | $15.34 | $15.44 | $16.08 | $15.28 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.29 | $0.28 | $0.28 | $0.26 | $0.26 |
Net realized and unrealized gain (loss) | (0.60) | 5.43 | (0.06) | 0.01 | 1.34 |
Total from investment operations | $(0.31) | $5.71 | $0.22 | $0.27 | $1.60 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.26) | $(0.25) | $(0.28) | $(0.27) | $(0.31) |
From net realized gain | (1.32) | (0.29) | (0.04) | (0.64) | (0.49) |
Total distributions declared to shareholders | $(1.58) | $(0.54) | $(0.32) | $(0.91) | $(0.80) |
Net asset value, end of period (x) | $18.62 | $20.51 | $15.34 | $15.44 | $16.08 |
Total return (%) (r)(s)(t)(x) | (1.89) | 37.92 | 1.46 | 2.38 | 10.63 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 1.21 | 1.24 | 1.27 | 1.27 | 1.28 |
Expenses after expense reductions | 1.13 | 1.13 | 1.14 | 1.14 | 1.14 |
Net investment income (loss) | 1.45 | 1.57 | 1.80 | 1.69 | 1.64 |
Portfolio turnover | 42 | 43 | 42 | 39 | 51 |
Net assets at end of period (000 omitted) | $128 | $242 | $210 | $369 | $298 |
Class R3 | Year ended | ||||
7/31/22 | 7/31/21 | 7/31/20 | 7/31/19 | 7/31/18 | |
Net asset value, beginning of period | $20.48 | $15.32 | $15.43 | $16.08 | $15.27 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.33 | $0.33 | $0.31 | $0.31 | $0.31 |
Net realized and unrealized gain (loss) | (0.59) | 5.43 | (0.06) | (0.01) | 1.33 |
Total from investment operations | $(0.26) | $5.76 | $0.25 | $0.30 | $1.64 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.31) | $(0.31) | $(0.32) | $(0.31) | $(0.34) |
From net realized gain | (1.32) | (0.29) | (0.04) | (0.64) | (0.49) |
Total distributions declared to shareholders | $(1.63) | $(0.60) | $(0.36) | $(0.95) | $(0.83) |
Net asset value, end of period (x) | $18.59 | $20.48 | $15.32 | $15.43 | $16.08 |
Total return (%) (r)(s)(t)(x) | (1.61) | 38.29 | 1.69 | 2.57 | 10.94 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.97 | 0.97 | 1.02 | 1.02 | 1.03 |
Expenses after expense reductions | 0.88 | 0.87 | 0.89 | 0.89 | 0.89 |
Net investment income (loss) | 1.73 | 1.74 | 2.05 | 2.04 | 1.97 |
Portfolio turnover | 42 | 43 | 42 | 39 | 51 |
Net assets at end of period (000 omitted) | $1,918 | $806 | $201 | $182 | $98 |
Class R4 | Year ended | ||||
7/31/22 | 7/31/21 | 7/31/20 | 7/31/19 | 7/31/18 | |
Net asset value, beginning of period | $20.47 | $15.31 | $15.42 | $16.06 | $15.26 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.30 | $0.39 | $0.35 | $0.34 | $0.35 |
Net realized and unrealized gain (loss) | (0.52) | 5.41 | (0.06) | 0.01 | 1.32 |
Total from investment operations | $(0.22) | $5.80 | $0.29 | $0.35 | $1.67 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.36) | $(0.35) | $(0.36) | $(0.35) | $(0.38) |
From net realized gain | (1.32) | (0.29) | (0.04) | (0.64) | (0.49) |
Total distributions declared to shareholders | $(1.68) | $(0.64) | $(0.40) | $(0.99) | $(0.87) |
Net asset value, end of period (x) | $18.57 | $20.47 | $15.31 | $15.42 | $16.06 |
Total return (%) (r)(s)(t)(x) | (1.40) | 38.64 | 1.95 | 2.88 | 11.18 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.73 | 0.72 | 0.77 | 0.77 | 0.78 |
Expenses after expense reductions | 0.64 | 0.63 | 0.64 | 0.64 | 0.64 |
Net investment income (loss) | 1.61 | 2.09 | 2.29 | 2.25 | 2.22 |
Portfolio turnover | 42 | 43 | 42 | 39 | 51 |
Net assets at end of period (000 omitted) | $2,187 | $424 | $101 | $88 | $56 |
Class R6 | Year ended | ||||
7/31/22 | 7/31/21 | 7/31/20 | 7/31/19 | 7/31/18 | |
Net asset value, beginning of period | $20.61 | $15.41 | $15.52 | $16.15 | $15.35 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.41 | $0.39 | $0.36 | $0.36 | $0.36 |
Net realized and unrealized gain (loss) | (0.60) | 5.46 | (0.06) | 0.01 | 1.33 |
Total from investment operations | $(0.19) | $5.85 | $0.30 | $0.37 | $1.69 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.38) | $(0.36) | $(0.37) | $(0.36) | $(0.40) |
From net realized gain | (1.32) | (0.29) | (0.04) | (0.64) | (0.49) |
Total distributions declared to shareholders | $(1.70) | $(0.65) | $(0.41) | $(1.00) | $(0.89) |
Net asset value, end of period (x) | $18.72 | $20.61 | $15.41 | $15.52 | $16.15 |
Total return (%) (r)(s)(t)(x) | (1.28) | 38.76 | 2.03 | 3.02 | 11.23 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.64 | 0.65 | 0.68 | 0.68 | 0.68 |
Expenses after expense reductions | 0.55 | 0.55 | 0.55 | 0.55 | 0.54 |
Net investment income (loss) | 2.05 | 2.14 | 2.39 | 2.31 | 2.30 |
Portfolio turnover | 42 | 43 | 42 | 39 | 51 |
Net assets at end of period (000 omitted) | $39,184 | $33,049 | $24,451 | $25,922 | $25,684 |
(d) | Per share data is based on average shares outstanding. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(w) | Per share amount was less than $0.01. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
Equity Securities: | ||||
United States | $280,890,534 | $— | $— | $280,890,534 |
Canada | 13,108,247 | — | — | 13,108,247 |
Switzerland | — | 13,063,582 | — | 13,063,582 |
United Kingdom | — | 11,547,663 | — | 11,547,663 |
Japan | — | 7,479,458 | — | 7,479,458 |
France | — | 4,326,124 | — | 4,326,124 |
Taiwan | 3,366,399 | — | — | 3,366,399 |
Germany | 2,980,769 | — | — | 2,980,769 |
Sweden | — | 2,957,269 | — | 2,957,269 |
Other Countries | — | 3,194,557 | — | 3,194,557 |
Mutual Funds | 4,222,824 | — | — | 4,222,824 |
Total | $304,568,773 | $42,568,653 | $— | $347,137,426 |
Year ended 7/31/22 | Year ended 7/31/21 | |
Ordinary income (including any short-term capital gains) | $9,158,251 | $4,662,077 |
Long-term capital gains | 16,354,379 | 3,358,035 |
Total distributions | $25,512,630 | $8,020,112 |
As of 7/31/22 | |
Cost of investments | $291,568,259 |
Gross appreciation | 67,145,309 |
Gross depreciation | (11,576,142) |
Net unrealized appreciation (depreciation) | $55,569,167 |
Undistributed long-term capital gain | 13,292,883 |
Post-October capital loss deferral | (652,128) |
Other temporary differences | 1,790,322 |
Total distributable earnings (loss) | $70,000,244 |
Year ended 7/31/22 | Year ended 7/31/21 | ||
Class A | $16,977,657 | $5,427,649 | |
Class B | 265,980 | 96,065 | |
Class C | 1,179,020 | 432,420 | |
Class I | 4,020,739 | 996,672 | |
Class R1 | 15,208 | 3,722 | |
Class R2 | 18,674 | 6,705 | |
Class R3 | 55,743 | 10,995 | |
Class R4 | 46,083 | 6,774 | |
Class R6 | 2,933,526 | 1,039,110 | |
Total | $25,512,630 | $8,020,112 |
Up to $1 billion | 0.50% |
In excess of $1 billion and up to $2.5 billion | 0.475% |
In excess of $2.5 billion | 0.45% |
Classes | ||||||||
A | B | C | I | R1 | R2 | R3 | R4 | R6 |
0.89% | 1.64% | 1.64% | 0.64% | 1.64% | 1.14% | 0.89% | 0.64% | 0.55% |
Distribution Fee Rate (d) | Service Fee Rate (d) | Total Distribution Plan (d) | Annual Effective Rate (e) | Distribution and Service Fee | |
Class A | — | 0.25% | 0.25% | 0.25% | $ 543,037 |
Class B | 0.75% | 0.25% | 1.00% | 1.00% | 36,496 |
Class C | 0.75% | 0.25% | 1.00% | 1.00% | 159,867 |
Class R1 | 0.75% | 0.25% | 1.00% | 1.00% | 2,812 |
Class R2 | 0.25% | 0.25% | 0.50% | 0.50% | 1,072 |
Class R3 | — | 0.25% | 0.25% | 0.25% | 2,858 |
Total Distribution and Service Fees | $746,142 |
(d) | In accordance with the distribution plan for certain classes, the fund pays distribution and/or service fees equal to these annual percentage rates of each class’s average daily net assets. The distribution and service fee rates disclosed by class represent the current rates in effect at the end of the reporting period. Any rate changes, if applicable, are detailed below. |
(e) | The annual effective rates represent actual fees incurred under the distribution plan for the year ended July 31, 2022 based on each class's average daily net assets. MFD has voluntarily agreed to rebate a portion of each class's 0.25% service fee attributable to accounts for which there is no financial intermediary specified on the account except for accounts attributable to MFS or its affiliates' seed money. For the year ended July 31, 2022, this rebate amounted to $27 for Class A and is included in the reduction of total expenses in the Statement of Operations. |
Amount | |
Class A | $4,056 |
Class B | 539 |
Class C | 730 |
Year ended 7/31/22 | Year ended 7/31/21 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Class A | 3,177,962 | $61,779,580 | 1,849,009 | $33,945,171 | |
Class B | 25,127 | 482,579 | 7,502 | 140,379 | |
Class C | 179,726 | 3,519,480 | 160,824 | 2,952,073 | |
Class I | 1,357,422 | 26,748,905 | 904,887 | 16,860,998 | |
Class R1 | 30,587 | 566,198 | 647 | 12,075 | |
Class R2 | 1,121 | 21,361 | 524 | 9,258 | |
Class R3 | 93,068 | 1,828,441 | 42,476 | 812,602 | |
Class R4 | 95,903 | 1,825,206 | 13,759 | 249,326 | |
Class R6 | 693,619 | 13,557,970 | 380,858 | 6,932,197 | |
5,654,535 | $110,329,720 | 3,360,486 | $61,914,079 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Class A | 865,025 | $16,967,328 | 308,877 | $5,418,146 | |
Class B | 13,439 | 265,011 | 5,481 | 95,400 | |
Class C | 59,702 | 1,176,831 | 24,792 | 431,174 | |
Class I | 203,055 | 3,982,777 | 54,440 | 961,835 | |
Class R1 | 782 | 15,208 | 212 | 3,722 | |
Class R2 | 942 | 18,674 | 384 | 6,705 | |
Class R3 | 2,887 | 55,743 | 596 | 10,995 | |
Class R4 | 2,428 | 46,083 | 372 | 6,774 | |
Class R6 | 141,554 | 2,796,922 | 54,439 | 962,285 | |
1,289,814 | $25,324,577 | 449,593 | $7,897,036 | ||
Shares reacquired | |||||
Class A | (1,246,210) | $(24,230,059) | (1,484,551) | $(26,024,199) | |
Class B | (51,733) | (1,000,229) | (52,853) | (946,476) | |
Class C | (289,037) | (5,674,934) | (385,328) | (6,963,612) | |
Class I | (730,806) | (14,022,335) | (364,047) | (6,609,096) | |
Class R1 | (243) | (4,307) | (93) | (1,775) | |
Class R2 | (6,941) | (136,504) | (2,808) | (48,089) | |
Class R3 | (32,191) | (649,675) | (16,838) | (327,666) | |
Class R4 | (1,307) | (25,855) | (26) | (514) | |
Class R6 | (345,268) | (6,784,081) | (418,513) | (7,609,226) | |
(2,703,736) | $(52,527,979) | (2,725,057) | $(48,530,653) |
Year ended 7/31/22 | Year ended 7/31/21 | ||||
Shares | Amount | Shares | Amount | ||
Net change | |||||
Class A | 2,796,777 | $54,516,849 | 673,335 | $13,339,118 | |
Class B | (13,167) | (252,639) | (39,870) | (710,697) | |
Class C | (49,609) | (978,623) | (199,712) | (3,580,365) | |
Class I | 829,671 | 16,709,347 | 595,280 | 11,213,737 | |
Class R1 | 31,126 | 577,099 | 766 | 14,022 | |
Class R2 | (4,878) | (96,469) | (1,900) | (32,126) | |
Class R3 | 63,764 | 1,234,509 | 26,234 | 495,931 | |
Class R4 | 97,024 | 1,845,434 | 14,105 | 255,586 | |
Class R6 | 489,905 | 9,570,811 | 16,784 | 285,256 | |
4,240,613 | $83,126,318 | 1,085,022 | $21,280,462 |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $3,365,969 | $66,731,706 | $65,874,770 | $(291) | $210 | $4,222,824 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $17,458 | $— |
September 15, 2022
Name, Age | Position(s) Held with Fund | Trustee/Officer Since(h) | Number of MFS Funds overseen by the Trustee | Principal Occupations During the Past Five Years | Other Directorships During the Past Five Years (j) | |||||
INTERESTED TRUSTEES | ||||||||||
Michael W. Roberge (k) (age 55) | Trustee | January 2021 | 136 | Massachusetts Financial Services Company, Chairman (since January 2021); Chief Executive Officer (since January 2017); Director; Chairman of the Board (since January 2022); President (until December 2018); Chief Investment Officer (until December 2018) | N/A | |||||
INDEPENDENT TRUSTEES | ||||||||||
John P. Kavanaugh (age 67) | Trustee and Chair of Trustees | January 2009 | 136 | Private investor | N/A | |||||
Steven E. Buller (age 71) | Trustee | February 2014 | 136 | Private investor | N/A | |||||
John A. Caroselli (age 68) | Trustee | March 2017 | 136 | Private investor; JC Global Advisors, LLC (management consulting), President (since 2015) | N/A | |||||
Maureen R. Goldfarb (age 67) | Trustee | January 2009 | 136 | Private investor | N/A | |||||
Peter D. Jones (age 67) | Trustee | January 2019 | 136 | Private investor | N/A | |||||
James W. Kilman, Jr. (age 61) | Trustee | January 2019 | 136 | Burford Capital Limited (finance and investment management), Senior Advisor (since May 3, 2021), Chief Financial Officer (2019 - May 2, 2021); KielStrand Capital LLC (family office), Chief Executive Officer (since 2016) | Alpha-En Corporation, Director (2016-2019) |
Name, Age | Position(s) Held with Fund | Trustee/Officer Since(h) | Number of MFS Funds overseen by the Trustee | Principal Occupations During the Past Five Years | Other Directorships During the Past Five Years (j) | |||||
Clarence Otis, Jr. (age 66) | Trustee | March 2017 | 136 | Private investor | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director | |||||
Maryanne L. Roepke (age 66) | Trustee | May 2014 | 136 | Private investor | N/A | |||||
Laurie J. Thomsen (age 65) | Trustee | March 2005 | 136 | Private investor | The Travelers Companies, Director; Dycom Industries, Inc., Director |
Name, Age | Position(s) Held with Fund | Trustee/Officer Since(h) | Number of MFS Funds for which the Person is an Officer | Principal Occupations During the Past Five Years | ||||
OFFICERS | ||||||||
Christopher R. Bohane (k) (age 48) | Assistant Secretary and Assistant Clerk | July 2005 | 136 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | ||||
Kino Clark (k) (age 54) | Assistant Treasurer | January 2012 | 136 | Massachusetts Financial Services Company, Vice President | ||||
John W. Clark, Jr. (k) (age 55) | Assistant Treasurer | April 2017 | 136 | Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head - Treasurer's Office (until February 2017) | ||||
David L. DiLorenzo (k) (age 54) | President | July 2005 | 136 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 55) | Secretary and Clerk | April 2017 | 136 | Massachusetts Financial Services Company, Executive Vice President and General Counsel (since March 2017); Harris Associates (investment management), General Counsel (until January 2017) | ||||
Brian E. Langenfeld (k) (age 49) | Assistant Secretary and Assistant Clerk | June 2006 | 136 | Massachusetts Financial Services Company, Vice President and Senior Counsel |
Name, Age | Position(s) Held with Fund | Trustee/Officer Since(h) | Number of MFS Funds for which the Person is an Officer | Principal Occupations During the Past Five Years | ||||
Rosa E. Licea-Mailloux(k) (age 45) | Chief Compliance Officer | March 2022 | 136 | Massachusetts Financial Services Company, Vice President (since 2018); Director of Corporate Compliance (2018-2021), Senior Director Compliance (2021-2022), Senior Managing Director of North American Compliance & Chief Compliance Officer (since March 2022); Natixis Investment Managers (investment management), Funds Chief Compliance Officer, Deputy General Counsel & Senior Vice President (until 2018) | ||||
Amanda S. Mooradian (k) (age 43) | Assistant Secretary and Assistant Clerk | September 2018 | 136 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 51) | Assistant Secretary and Assistant Clerk | July 2005 | 136 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Kasey L. Phillips (k) (age 51) | Assistant Treasurer | September 2012 | 136 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 47) | Assistant Secretary and Assistant Clerk | October 2014 | 136 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
James O. Yost (k) (age 62) | Treasurer | September 1990 | 136 | Massachusetts Financial Services Company, Senior Vice President |
(h) | Date first appointed to serve as Trustee/Officer of an MFS Fund. Each Trustee has served continuously since appointment unless indicated otherwise. From January 2012 through December 2016, Messrs. DiLorenzo and Yost served as Treasurer and Deputy Treasurer of the Funds, respectively. |
(j) | Directorships or trusteeships of companies required to report to the Securities and Exchange Commission (i.e., “public companies”). |
(k) | “Interested person” of the Trust within the meaning of the Investment Company Act of 1940 (referred to as the 1940 Act), which is the principal federal law governing investment companies like the fund, as a result of a position with MFS. The address of MFS is 111 Huntington Avenue, Boston, Massachusetts 02199-7618. |
Investment Adviser | Custodian |
Massachusetts Financial Services Company 111 Huntington Avenue Boston, MA 02199-7618 | State Street Bank and Trust Company 1 Lincoln Street Boston, MA 02111-2900 |
Distributor | Independent Registered Public Accounting Firm |
MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618 | Ernst & Young LLP 200 Clarendon Street Boston, MA 02116 |
Portfolio Manager(s) | |
Jim Fallon Matt Krummell Jonathan Sage Jed Stock |
FACTS | WHAT DOES MFS DO WITH YOUR PERSONAL INFORMATION? |
Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
What? | The types of personal information we collect and share depend on the product or service you have with us. This information can include: |
• Social Security number and account balances | |
• Account transactions and transaction history | |
• Checking account information and wire transfer instructions | |
When you are no longer our customer, we continue to share your information as described in this notice. |
How? | All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MFS chooses to share; and whether you can limit this sharing. |
Reasons we can share your personal information | Does MFS share? | Can you limit this sharing? |
For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus | Yes | No |
For our marketing purposes – to offer our products and services to you | No | We don't share |
For joint marketing with other financial companies | No | We don't share |
For our affiliates' everyday business purposes – information about your transactions and experiences | No | We don't share |
For our affiliates' everyday business purposes – information about your creditworthiness | No | We don't share |
For nonaffiliates to market to you | No | We don't share |
Questions? | Call 800-225-2606 or go to mfs.com. |
Who we are | |
Who is providing this notice? | MFS Funds, MFS Investment Management, MFS Institutional Advisors, Inc., and MFS Heritage Trust Company. |
What we do | |
How does MFS protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include procedural, electronic, and physical safeguards for the protection of the personal information we collect about you. |
How does MFS collect my personal information? | We collect your personal information, for example, when you |
• open an account or provide account information | |
• direct us to buy securities or direct us to sell your securities | |
• make a wire transfer | |
We also collect your personal information from others, such as credit bureaus, affiliates, or other companies. | |
Why can't I limit all sharing? | Federal law gives you the right to limit only |
• sharing for affiliates' everyday business purposes – information about your creditworthiness | |
• affiliates from using your information to market to you | |
• sharing for nonaffiliates to market to you | |
State laws and individual companies may give you additional rights to limit sharing. |
Definitions | |
Affiliates | Companies related by common ownership or control. They can be financial and nonfinancial companies. |
• MFS does not share personal information with affiliates, except for everyday business purposes as described on page one of this notice. | |
Nonaffiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies. |
• MFS does not share with nonaffiliates so they can market to you. | |
Joint marketing | A formal agreement between nonaffiliated financial companies that together market financial products or services to you. |
• MFS doesn't jointly market. |
Other important information |
If you own an MFS product or receive an MFS service in the name of a third party such as a bank or broker-dealer, their privacy policy may apply to you instead of ours. |
Equity Research Fund
Equity Research Fund
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back cover |
Taiwan Semiconductor Manufacturing Co. Ltd. | 8.4% |
Samsung Electronics Co. Ltd. | 5.6% |
Tencent Holdings Ltd. | 4.5% |
Alibaba Group Holding Ltd. (a) | 3.1% |
Yum China Holdings, Inc. | 2.9% |
UPL Ltd. | 2.8% |
Reliance Industries Ltd. (a) | 2.8% |
HDFC Bank Ltd. | 2.5% |
AIA Group Ltd. | 2.3% |
Kweichow Moutai Co. Ltd. | 2.3% |
Financials | 20.8% |
Information Technology | 16.9% |
Communication Services | 12.1% |
Consumer Staples | 11.6% |
Consumer Discretionary | 11.5% |
Energy | 7.5% |
Industrials | 6.0% |
Materials | 5.6% |
Utilities | 3.3% |
Real Estate | 1.4% |
Health Care | 0.8% |
China | 29.5% |
India | 13.3% |
Taiwan | 11.5% |
South Korea | 11.1% |
Hong Kong | 7.8% |
Brazil | 5.0% |
Mexico | 3.3% |
Indonesia | 3.2% |
Thailand | 2.8% |
Other Countries | 12.5% |
Hong Kong Dollar | 25.6% |
Indian Rupee | 13.3% |
Taiwan Dollar | 11.5% |
South Korean Won | 11.1% |
Chinese Renminbi | 8.8% |
United States Dollar | 7.3% |
Brazilian Real | 5.0% |
Euro | 3.7% |
Mexican Peso | 3.3% |
Other Currencies | 10.4% |
(g) | 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. |
(x) | Represents the portfolio’s exposure to issuer countries as a percentage of a portfolio’s net assets. For purposes of this presentation, United States includes Cash & Cash Equivalents. |
(y) | Represents the portfolio’s exposure to a particular currency as a percentage of a portfolio's net assets. For purposes of this presentation, United States Dollar includes Cash & Cash Equivalents. |
(b) | Security is not a benchmark constituent. |
(h) | Security was not held in the portfolio at period end. |
Share Class | Class Inception Date | 1-yr | Life (t) |
A | 2/23/21 | (20.10)% | (19.18)% |
C | 2/23/21 | (20.70)% | (19.78)% |
I | 2/23/21 | (20.02)% | (19.06)% |
R1 | 2/23/21 | (20.70)% | (19.78)% |
R2 | 2/23/21 | (20.31)% | (19.38)% |
R3 | 2/23/21 | (20.11)% | (19.18)% |
R4 | 2/23/21 | (19.91)% | (18.98)% |
R6 | 2/23/21 | (19.91)% | (18.98)% |
MSCI Emerging Markets Index (net div) (f) | (20.09)% | (19.00)% |
A With Initial Sales Charge (5.75%) | (24.70)% | (22.44)% |
C With CDSC (1% for 12 months) (v) | (21.49)% | (19.78)% |
(f) | Source: FactSet Research Systems Inc. |
(t) | For the period from the class inception date through the stated period end. (See Notes to Performance Summary.) |
(v) | Assuming redemption at the end of the applicable period. |
(e) | Morgan Stanley Capital International (“MSCI”) makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. |
February 1, 2022 through July 31, 2022
Share Class | Annualized Expense Ratio | Beginning Account Value 2/01/22 | Ending Account Value 7/31/22 | Expenses Paid During Period (p) 2/01/22-7/31/22 | |
A | Actual | 1.25% | $1,000.00 | $807.06 | $5.60 |
Hypothetical (h) | 1.25% | $1,000.00 | $1,018.60 | $6.26 | |
C | Actual | 2.00% | $1,000.00 | $803.99 | $8.95 |
Hypothetical (h) | 2.00% | $1,000.00 | $1,014.88 | $9.99 | |
I | Actual | 1.00% | $1,000.00 | $807.06 | $4.48 |
Hypothetical (h) | 1.00% | $1,000.00 | $1,019.84 | $5.01 | |
R1 | Actual | 2.00% | $1,000.00 | $803.99 | $8.95 |
Hypothetical (h) | 2.00% | $1,000.00 | $1,014.88 | $9.99 | |
R2 | Actual | 1.50% | $1,000.00 | $805.95 | $6.72 |
Hypothetical (h) | 1.50% | $1,000.00 | $1,017.36 | $7.50 | |
R3 | Actual | 1.25% | $1,000.00 | $807.06 | $5.60 |
Hypothetical (h) | 1.25% | $1,000.00 | $1,018.60 | $6.26 | |
R4 | Actual | 1.00% | $1,000.00 | $808.16 | $4.48 |
Hypothetical (h) | 1.00% | $1,000.00 | $1,019.84 | $5.01 | |
R6 | Actual | 0.99% | $1,000.00 | $808.16 | $4.44 |
Hypothetical (h) | 0.99% | $1,000.00 | $1,019.89 | $4.96 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 97.5% | ||||
Alcoholic Beverages – 4.9% | ||||
China Resources Beer Holdings Co. Ltd. | 6,000 | $41,637 | ||
Jiangsu Yanghe Brewery JSC Ltd. | 900 | 22,126 | ||
Kweichow Moutai Co. Ltd. | 200 | 56,457 | ||
$120,220 | ||||
Automotive – 4.2% | ||||
BYD Co. Ltd. | 1,000 | $36,649 | ||
Maruti Suzuki India Ltd. | 103 | 11,420 | ||
PT United Tractors Tbk | 25,100 | 54,659 | ||
$102,728 | ||||
Biotechnology – 0.6% | ||||
Hugel, Inc. (a) | 145 | $15,033 | ||
Brokerage & Asset Managers – 3.0% | ||||
B3 S.A. - Brasil Bolsa Balcao | 13,000 | $27,864 | ||
Hong Kong Exchanges & Clearing Ltd. | 1,000 | 45,929 | ||
Moscow Exchange MICEX-RTS PJSC (a)(u) | 15,769 | 0 | ||
$73,793 | ||||
Business Services – 2.1% | ||||
Tata Consultancy Services Ltd. | 1,218 | $50,899 | ||
Chemicals – 2.8% | ||||
UPL Ltd. | 7,414 | $69,458 | ||
Computer Software – 4.6% | ||||
Kingsoft Corp. Ltd. | 9,400 | $31,599 | ||
Naver Corp. | 200 | 40,100 | ||
NetEase.com, Inc., ADR | 434 | 40,353 | ||
$112,052 | ||||
Computer Software - Systems – 5.6% | ||||
Samsung Electronics Co. Ltd. | 2,886 | $136,866 | ||
Construction – 6.3% | ||||
Anhui Conch Cement Co. Ltd. | 7,000 | $27,756 | ||
Midea Group Co. Ltd. | 6,300 | 51,566 | ||
Techtronic Industries Co. Ltd. | 5,000 | 55,796 | ||
Zhejiang Supor Co. Ltd. | 2,900 | 20,201 | ||
$155,319 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Consumer Products – 1.2% | ||||
Amorepacific Corp. | 293 | $29,272 | ||
Consumer Services – 1.6% | ||||
Localiza Rent a Car S.A. | 3,600 | $40,083 | ||
Electrical Equipment – 0.9% | ||||
Advantech Co. Ltd. | 2,000 | $23,064 | ||
Electronics – 8.4% | ||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 12,000 | $205,506 | ||
Energy - Independent – 2.8% | ||||
Reliance Industries Ltd. (a) | 2,149 | $68,287 | ||
Energy - Integrated – 2.5% | ||||
China Petroleum & Chemical Corp. | 28,000 | $13,175 | ||
Galp Energia SGPS S.A., “B” | 4,529 | 47,843 | ||
LUKOIL PJSC, ADR (u) | 471 | 0 | ||
$61,018 | ||||
Engineering - Construction – 2.1% | ||||
Doosan Bobcat, Inc. | 2,093 | $50,458 | ||
Food & Beverages – 3.1% | ||||
Gruma S.A.B. de C.V. | 3,674 | $45,686 | ||
Inner Mongolia Yili Industrial Group Co. Ltd., “A” | 5,900 | 31,413 | ||
$77,099 | ||||
General Merchandise – 2.4% | ||||
BIM Birlesik Magazalar A.S. | 4,442 | $22,874 | ||
Wal-Mart de Mexico S.A.B. de C.V. | 9,867 | 35,740 | ||
$58,614 | ||||
Insurance – 2.3% | ||||
AIA Group Ltd. | 5,600 | $56,520 | ||
Internet – 4.9% | ||||
Allegro.EU S.A. (a) | 2,036 | $11,014 | ||
Tencent Holdings Ltd. | 2,800 | 110,146 | ||
$121,160 | ||||
Major Banks – 1.5% | ||||
SBI Cards & Payment Services Ltd. | 3,042 | $36,115 | ||
Medical & Health Technology & Services – 0.2% | ||||
Burning Rock Biotech Ltd., ADR (a) | 1,129 | $3,601 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Metals & Mining – 1.2% | ||||
Vale S.A., ADR | 2,126 | $28,616 | ||
Natural Gas - Distribution – 2.3% | ||||
China Resources Gas Group Ltd. | 13,400 | $56,403 | ||
Other Banks & Diversified Financials – 14.0% | ||||
Bank Central Asia Tbk PT | 48,900 | $24,232 | ||
Chailease Holding Co. Ltd. | 7,560 | 53,650 | ||
China Merchants Bank Co Ltd. “A” | 5,800 | 30,281 | ||
Credicorp Ltd. | 352 | 45,549 | ||
Emirates NBD PJSC | 8,880 | 33,363 | ||
HDFC Bank Ltd. | 3,366 | 61,475 | ||
Komercni Banka A.S. | 1,173 | 29,612 | ||
Kotak Mahindra Bank Ltd. | 1,228 | 28,122 | ||
Sberbank of Russia PJSC (a)(u) | 11,152 | 0 | ||
TCS Group Holding PLC (a)(u) | 262 | 0 | ||
Tisco Financial Group PCL | 15,700 | 37,746 | ||
$344,030 | ||||
Precious Metals & Minerals – 0.3% | ||||
Polymetal International PLC | 3,376 | $8,017 | ||
Real Estate – 1.4% | ||||
ESR Group Ltd. (a) | 13,200 | $34,292 | ||
Restaurants – 2.9% | ||||
Yum China Holdings, Inc. | 1,458 | $71,019 | ||
Specialty Chemicals – 0.1% | ||||
Borouge PLC (a) | 3,753 | $3,004 | ||
Specialty Stores – 3.3% | ||||
Alibaba Group Holding Ltd. (a) | 6,700 | $75,698 | ||
JD.com, Inc., “A” | 152 | 4,527 | ||
$80,225 | ||||
Telecommunications - Wireless – 1.3% | ||||
Advanced Info Service Public Co. Ltd. | 5,900 | $32,217 | ||
Telephone Services – 1.7% | ||||
Hellenic Telecommunications Organization S.A. | 2,485 | $42,719 | ||
Utilities - Electric Power – 1.0% | ||||
Energisa S.A., IEU | 3,000 | $25,535 | ||
Total Common Stocks (Identified Cost, $3,111,951) | $2,393,242 |
Issuer | Shares/Par | Value ($) | ||
Investment Companies (h) – 3.6% | ||||
Money Market Funds – 3.6% | ||||
MFS Institutional Money Market Portfolio, 1.72% (v) (Identified Cost, $88,692) | 88,697 | $88,697 | ||
Other Assets, Less Liabilities – (1.1)% | (25,794) | |||
Net Assets – 100.0% | $2,456,145 |
(a) | Non-income producing security. | |||
(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 $88,697 and $2,393,242, respectively. | |||
(u) | The security was valued using significant unobservable inputs and is considered level 3 under the fair value hierarchy. For further information about the fund’s level 3 holdings, please see Note 2 in the Notes to Financial Statements. | |||
(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: | |
ADR | American Depositary Receipt |
IEU | International Equity Unit |
PCL | Public Company Limited |
Assets | |
Investments in unaffiliated issuers, at value (identified cost, $3,111,951) | $2,393,242 |
Investments in affiliated issuers, at value (identified cost, $88,692) | 88,697 |
Foreign currency, at value (identified cost, $33) | 33 |
Receivables for | |
Dividends | 3,426 |
Receivable from investment adviser | 25,796 |
Other assets | 39 |
Total assets | $2,511,233 |
Liabilities | |
Payable to affiliates | |
Administrative services fee | $190 |
Shareholder servicing costs | 132 |
Distribution and service fees | 16 |
Deferred country tax expense payable | 644 |
Accrued expenses and other liabilities | 54,106 |
Total liabilities | $55,088 |
Net assets | $2,456,145 |
Net assets consist of | |
Paid-in capital | $3,280,635 |
Total distributable earnings (loss) | (824,490) |
Net assets | $2,456,145 |
Shares of beneficial interest outstanding | 335,205 |
Net assets | Shares outstanding | Net asset value per share (a) | |
Class A | $135,429 | 18,505 | $7.32 |
Class C | 43,310 | 5,967 | 7.26 |
Class I | 47,597 | 6,498 | 7.32 |
Class R1 | 36,430 | 5,019 | 7.26 |
Class R2 | 36,693 | 5,020 | 7.31 |
Class R3 | 36,824 | 5,031 | 7.32 |
Class R4 | 36,957 | 5,042 | 7.33 |
Class R6 | 2,082,905 | 284,123 | 7.33 |
(a) | Maximum offering price per share was equal to the net asset value per share for all share classes, except for Class A, for which the maximum offering price per share was $7.77 [100 / 94.25 x $7.32]. On sales of $50,000 or more, the maximum offering price of Class A shares is reduced. A contingent deferred sales charge may be imposed on redemptions of Class A and Class C shares. Redemption price per share was equal to the net asset value per share for Classes I, R1, R2, R3, R4, and R6. |
Net investment income (loss) | |
Income | |
Dividends | $61,219 |
Non-cash dividends | 4,528 |
Dividends from affiliated issuers | 172 |
Foreign taxes withheld | (6,474) |
Total investment income | $59,445 |
Expenses | |
Management fee | $25,866 |
Distribution and service fees | 1,615 |
Shareholder servicing costs | 1,679 |
Administrative services fee | 17,500 |
Independent Trustees' compensation | 2,844 |
Custodian fee | 22,004 |
Shareholder communications | 5,601 |
Audit and tax fees | 48,651 |
Legal fees | 42 |
Registration fees | 107,017 |
Miscellaneous | 29,627 |
Total expenses | $262,446 |
Reduction of expenses by investment adviser | (233,845) |
Net expenses | $28,601 |
Net investment income (loss) | $30,844 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers (net of $4,118 country tax) | $(123,435) |
Affiliated issuers | (9) |
Foreign currency | (1,501) |
Net realized gain (loss) | $(124,945) |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers (net of $1,748 decrease in deferred country tax) | $(533,978) |
Affiliated issuers | 5 |
Translation of assets and liabilities in foreign currencies | (17) |
Net unrealized gain (loss) | $(533,990) |
Net realized and unrealized gain (loss) | $(658,935) |
Change in net assets from operations | $(628,091) |
Year ended | Year ended | |
7/31/22 | 7/31/21 (c) | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $30,844 | $10,397 |
Net realized gain (loss) | (124,945) | 2,976 |
Net unrealized gain (loss) | (533,990) | (185,370) |
Change in net assets from operations | $(628,091) | $(171,997) |
Total distributions to shareholders | $(24,810) | $— |
Change in net assets from fund share transactions | $1,050,762 | $2,230,281 |
Total change in net assets | $397,861 | $2,058,284 |
Net assets | ||
At beginning of period | 2,058,284 | — |
At end of period | $2,456,145 | $2,058,284 |
(c) | For the period from the commencement of the fund’s investment operations, February 23, 2021, through the stated period end. |
Class A | Year ended | |
7/31/22 | 7/31/21(c) | |
Net asset value, beginning of period | $9.22 | $10.00 |
Income (loss) from investment operations | ||
Net investment income (loss) (d) | $0.08 | $0.04 |
Net realized and unrealized gain (loss) | (1.93) | (0.82) |
Total from investment operations | $(1.85) | $(0.78) |
Less distributions declared to shareholders | ||
From net investment income | $(0.02) | $— |
From net realized gain | (0.03) | — |
Total distributions declared to shareholders | $(0.05) | $— |
Net asset value, end of period (x) | $7.32 | $9.22 |
Total return (%) (r)(s)(t)(x) | (20.10) | (7.80)(n) |
Ratios (%) (to average net assets) and Supplemental data: | ||
Expenses before expense reductions (f) | 9.91 | 9.75(a) |
Expenses after expense reductions (f) | 1.25 | 1.25(a) |
Net investment income (loss) | 0.95 | 0.97(a) |
Portfolio turnover | 39 | 17(n) |
Net assets at end of period (000 omitted) | $135 | $166 |
Class C | Year ended | |
7/31/22 | 7/31/21(c) | |
Net asset value, beginning of period | $9.19 | $10.00 |
Income (loss) from investment operations | ||
Net investment income (loss) (d) | $0.02 | $0.01 |
Net realized and unrealized gain (loss) | (1.92) | (0.82) |
Total from investment operations | $(1.90) | $(0.81) |
Less distributions declared to shareholders | ||
From net investment income | $— | $— |
From net realized gain | (0.03) | — |
Total distributions declared to shareholders | $(0.03) | $— |
Net asset value, end of period (x) | $7.26 | $9.19 |
Total return (%) (r)(s)(t)(x) | (20.70) | (8.10)(n) |
Ratios (%) (to average net assets) and Supplemental data: | ||
Expenses before expense reductions (f) | 10.69 | 10.51(a) |
Expenses after expense reductions (f) | 2.00 | 2.00(a) |
Net investment income (loss) | 0.22 | 0.20(a) |
Portfolio turnover | 39 | 17(n) |
Net assets at end of period (000 omitted) | $43 | $47 |
Class I | Year ended | |
7/31/22 | 7/31/21(c) | |
Net asset value, beginning of period | $9.23 | $10.00 |
Income (loss) from investment operations | ||
Net investment income (loss) (d) | $0.10 | $0.05 |
Net realized and unrealized gain (loss) | (1.94) | (0.82) |
Total from investment operations | $(1.84) | $(0.77) |
Less distributions declared to shareholders | ||
From net investment income | $(0.04) | $— |
From net realized gain | (0.03) | — |
Total distributions declared to shareholders | $(0.07) | $— |
Net asset value, end of period (x) | $7.32 | $9.23 |
Total return (%) (r)(s)(t)(x) | (20.02) | (7.70)(n) |
Ratios (%) (to average net assets) and Supplemental data: | ||
Expenses before expense reductions (f) | 9.83 | 9.51(a) |
Expenses after expense reductions (f) | 1.00 | 1.00(a) |
Net investment income (loss) | 1.22 | 1.20(a) |
Portfolio turnover | 39 | 17(n) |
Net assets at end of period (000 omitted) | $48 | $47 |
Class R1 | Year ended | |
7/31/22 | 7/31/21(c) | |
Net asset value, beginning of period | $9.19 | $10.00 |
Income (loss) from investment operations | ||
Net investment income (loss) (d) | $0.02 | $0.01 |
Net realized and unrealized gain (loss) | (1.92) | (0.82) |
Total from investment operations | $(1.90) | $(0.81) |
Less distributions declared to shareholders | ||
From net investment income | $— | $— |
From net realized gain | (0.03) | — |
Total distributions declared to shareholders | $(0.03) | $— |
Net asset value, end of period (x) | $7.26 | $9.19 |
Total return (%) (r)(s)(t)(x) | (20.70) | (8.10)(n) |
Ratios (%) (to average net assets) and Supplemental data: | ||
Expenses before expense reductions (f) | 10.66 | 10.51(a) |
Expenses after expense reductions (f) | 2.00 | 2.00(a) |
Net investment income (loss) | 0.19 | 0.21(a) |
Portfolio turnover | 39 | 17(n) |
Net assets at end of period (000 omitted) | $36 | $46 |
Class R2 | Year ended | |
7/31/22 | 7/31/21(c) | |
Net asset value, beginning of period | $9.21 | $10.00 |
Income (loss) from investment operations | ||
Net investment income (loss) (d) | $0.06 | $0.03 |
Net realized and unrealized gain (loss) | (1.93) | (0.82) |
Total from investment operations | $(1.87) | $(0.79) |
Less distributions declared to shareholders | ||
From net investment income | $(0.00)(w) | $— |
From net realized gain | (0.03) | — |
Total distributions declared to shareholders | $(0.03) | $— |
Net asset value, end of period (x) | $7.31 | $9.21 |
Total return (%) (r)(s)(t)(x) | (20.31) | (7.90)(n) |
Ratios (%) (to average net assets) and Supplemental data: | ||
Expenses before expense reductions (f) | 10.16 | 10.01(a) |
Expenses after expense reductions (f) | 1.50 | 1.50(a) |
Net investment income (loss) | 0.69 | 0.70(a) |
Portfolio turnover | 39 | 17(n) |
Net assets at end of period (000 omitted) | $37 | $46 |
Class R3 | Year ended | |
7/31/22 | 7/31/21(c) | |
Net asset value, beginning of period | $9.22 | $10.00 |
Income (loss) from investment operations | ||
Net investment income (loss) (d) | $0.08 | $0.04 |
Net realized and unrealized gain (loss) | (1.93) | (0.82) |
Total from investment operations | $(1.85) | $(0.78) |
Less distributions declared to shareholders | ||
From net investment income | $(0.02) | $— |
From net realized gain | (0.03) | — |
Total distributions declared to shareholders | $(0.05) | $— |
Net asset value, end of period (x) | $7.32 | $9.22 |
Total return (%) (r)(s)(t)(x) | (20.11) | (7.80)(n) |
Ratios (%) (to average net assets) and Supplemental data: | ||
Expenses before expense reductions (f) | 9.91 | 9.76(a) |
Expenses after expense reductions (f) | 1.25 | 1.25(a) |
Net investment income (loss) | 0.94 | 0.95(a) |
Portfolio turnover | 39 | 17(n) |
Net assets at end of period (000 omitted) | $37 | $46 |
Class R4 | Year ended | |
7/31/22 | 7/31/21(c) | |
Net asset value, beginning of period | $9.23 | $10.00 |
Income (loss) from investment operations | ||
Net investment income (loss) (d) | $0.10 | $0.05 |
Net realized and unrealized gain (loss) | (1.93) | (0.82) |
Total from investment operations | $(1.83) | $(0.77) |
Less distributions declared to shareholders | ||
From net investment income | $(0.04) | $— |
From net realized gain | (0.03) | — |
Total distributions declared to shareholders | $(0.07) | $— |
Net asset value, end of period (x) | $7.33 | $9.23 |
Total return (%) (r)(s)(t)(x) | (19.91) | (7.70)(n) |
Ratios (%) (to average net assets) and Supplemental data: | ||
Expenses before expense reductions (f) | 9.66 | 9.51(a) |
Expenses after expense reductions (f) | 1.00 | 1.00(a) |
Net investment income (loss) | 1.19 | 1.19(a) |
Portfolio turnover | 39 | 17(n) |
Net assets at end of period (000 omitted) | $37 | $46 |
Class R6 | Year ended | |
7/31/22 | 7/31/21(c) | |
Net asset value, beginning of period | $9.23 | $10.00 |
Income (loss) from investment operations | ||
Net investment income (loss) (d) | $0.10 | $0.05 |
Net realized and unrealized gain (loss) | (1.93) | (0.82) |
Total from investment operations | $(1.83) | $(0.77) |
Less distributions declared to shareholders | ||
From net investment income | $(0.04) | $— |
From net realized gain | (0.03) | — |
Total distributions declared to shareholders | $(0.07) | $— |
Net asset value, end of period (x) | $7.33 | $9.23 |
Total return (%) (r)(s)(t)(x) | (19.91) | (7.70)(n) |
Ratios (%) (to average net assets) and Supplemental data: | ||
Expenses before expense reductions (f) | 9.57 | 9.50(a) |
Expenses after expense reductions (f) | 0.99 | 0.99(a) |
Net investment income (loss) | 1.19 | 1.20(a) |
Portfolio turnover | 39 | 17(n) |
Net assets at end of period (000 omitted) | $2,083 | $1,615 |
(a) | Annualized. |
(c) | For the period from the commencement of the fund’s investment operations, February 23, 2021, through the stated period end. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. See Note 2 in the Notes to Financial Statements for additional information. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(w) | Per share amount was less than $0.01. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
Equity Securities: | ||||
China | $139,701 | $584,906 | $— | $724,607 |
India | — | 325,776 | — | 325,776 |
Taiwan | — | 282,220 | — | 282,220 |
South Korea | — | 271,729 | — | 271,729 |
Hong Kong | — | 192,537 | — | 192,537 |
Brazil | 122,098 | — | — | 122,098 |
Mexico | 81,426 | — | — | 81,426 |
Indonesia | 78,891 | — | — | 78,891 |
Thailand | — | 69,963 | — | 69,963 |
Other Countries | 162,264 | 81,731 | 0 | 243,995 |
Mutual Funds | 88,697 | — | — | 88,697 |
Total | $673,077 | $1,808,862 | $0 | $2,481,939 |
Equity Securities | |
Balance as of 7/31/21 | $— |
Transfers into level 3 | 0 |
Balance as of 7/31/22 | $0 |
Year ended 7/31/22 | Year ended 7/31/21 (c) | |
Ordinary income (including any short-term capital gains) | $24,810 | $— |
(c) | For the period from the commencement of the fund’s investment operations, February 23, 2021, through the stated period end. |
As of 7/31/22 | |
Cost of investments | $3,227,575 |
Gross appreciation | 48,141 |
Gross depreciation | (793,777) |
Net unrealized appreciation (depreciation) | $(745,636) |
Undistributed ordinary income | 27,401 |
Capital loss carryforwards | (105,646) |
Other temporary differences | (609) |
Total distributable earnings (loss) | $(824,490) |
Short-Term | $(60,369) |
Long-Term | (45,277) |
Total | $(105,646) |
Year ended 7/31/22 | Year ended 7/31/21(c) | ||
Class A | $1,051 | $— | |
Class C | 188 | — | |
Class I | 389 | — | |
Class R1 | 173 | — | |
Class R2 | 189 | — | |
Class R3 | 289 | — | |
Class R4 | 390 | — | |
Class R6 | 22,141 | — | |
Total | $24,810 | $— |
(c) | For the period from the commencement of the fund’s investment operations, February 23, 2021, through the stated period end. |
Up to $1 billion | 0.95% |
In excess of $1 billion and up to $2.5 billion | 0.90% |
In excess of $2.5 billion and up to $5 billion | 0.85% |
In excess of $5 billion | 0.825% |
Classes | |||||||
A | C | I | R1 | R2 | R3 | R4 | R6 |
1.31% | 2.06% | 1.06% | 2.06% | 1.56% | 1.31% | 1.06% | 0.99% |
Distribution Fee Rate (d) | Service Fee Rate (d) | Total Distribution Plan (d) | Annual Effective Rate (e) | Distribution and Service Fee | |
Class A | — | 0.25% | 0.25% | 0.25% | $ 390 |
Class C | 0.75% | 0.25% | 1.00% | 1.00% | 477 |
Class R1 | 0.75% | 0.25% | 1.00% | 1.00% | 427 |
Class R2 | 0.25% | 0.25% | 0.50% | 0.50% | 214 |
Class R3 | — | 0.25% | 0.25% | 0.25% | 107 |
Total Distribution and Service Fees | $1,615 |
(d) | In accordance with the distribution plan for certain classes, the fund pays distribution and/or service fees equal to these annual percentage rates of each class’s average daily net assets. The distribution and service fee rates disclosed by class represent the current rates in effect at the end of the reporting period. Any rate changes, if applicable, are detailed below. |
(e) | The annual effective rates represent actual fees incurred under the distribution plan for the year ended July 31, 2022 based on each class's average daily net assets. MFD has voluntarily agreed to rebate a portion of each class's 0.25% service fee attributable to accounts for which there is no financial intermediary specified on the account except for accounts attributable to MFS or its affiliates' seed money. There were no service fee rebates for the year ended July 31, 2022. |
Year ended 7/31/22 | Year ended 7/31/21 (c) | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Class A | 1,134 | $9,557 | 17,976 | $178,795 | |
Class C | 851 | 7,545 | 5,101 | 50,968 | |
Class I | 11,051 | 85,549 | 5,067 | 50,650 | |
Class R1 | — | — | 5,000 | 50,000 | |
Class R2 | — | — | 5,000 | 50,000 | |
Class R3 | — | — | 5,000 | 50,000 | |
Class R4 | — | — | 5,000 | 50,000 | |
Class R6 | 106,724 | 1,000,000 | 175,000 | 1,750,000 | |
119,760 | $1,102,651 | 223,144 | $2,230,413 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Class A | 114 | $1,051 | — | $— | |
Class C | 21 | 188 | — | — | |
Class I | 42 | 389 | — | — | |
Class R1 | 19 | 173 | — | — | |
Class R2 | 20 | 189 | — | — | |
Class R3 | 31 | 289 | — | — | |
Class R4 | 42 | 390 | — | — | |
Class R6 | 2,399 | 22,141 | — | — | |
2,688 | $24,810 | — | $— | ||
Shares reacquired | |||||
Class A | (718) | $(5,522) | (1) | $(13) | |
Class C | (3) | (25) | (3) | (25) | |
Class I | (9,652) | (71,152) | (10) | (94) | |
(10,373) | $(76,699) | (14) | $(132) |
Year ended 7/31/22 | Year ended 7/31/21 (c) | ||||
Shares | Amount | Shares | Amount | ||
Net change | |||||
Class A | 530 | $5,086 | 17,975 | $178,782 | |
Class C | 869 | 7,708 | 5,098 | 50,943 | |
Class I | 1,441 | 14,786 | 5,057 | 50,556 | |
Class R1 | 19 | 173 | 5,000 | 50,000 | |
Class R2 | 20 | 189 | 5,000 | 50,000 | |
Class R3 | 31 | 289 | 5,000 | 50,000 | |
Class R4 | 42 | 390 | 5,000 | 50,000 | |
Class R6 | 109,123 | 1,022,141 | 175,000 | 1,750,000 | |
112,075 | $1,050,762 | 223,130 | $2,230,281 |
(c) | For the period from the commencement of the fund’s investment operations, February 23, 2021, through the stated period end. |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $67,408 | $1,567,319 | $1,546,026 | $(9) | $5 | $88,697 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $172 | $— |
September 15, 2022
Name, Age | Position(s) Held with Fund | Trustee/Officer Since(h) | Number of MFS Funds overseen by the Trustee | Principal Occupations During the Past Five Years | Other Directorships During the Past Five Years (j) | |||||
INTERESTED TRUSTEES | ||||||||||
Michael W. Roberge (k) (age 55) | Trustee | January 2021 | 136 | Massachusetts Financial Services Company, Chairman (since January 2021); Chief Executive Officer (since January 2017); Director; Chairman of the Board (since January 2022); President (until December 2018); Chief Investment Officer (until December 2018) | N/A | |||||
INDEPENDENT TRUSTEES | ||||||||||
John P. Kavanaugh (age 67) | Trustee and Chair of Trustees | January 2009 | 136 | Private investor | N/A | |||||
Steven E. Buller (age 71) | Trustee | February 2014 | 136 | Private investor | N/A | |||||
John A. Caroselli (age 68) | Trustee | March 2017 | 136 | Private investor; JC Global Advisors, LLC (management consulting), President (since 2015) | N/A | |||||
Maureen R. Goldfarb (age 67) | Trustee | January 2009 | 136 | Private investor | N/A | |||||
Peter D. Jones (age 67) | Trustee | January 2019 | 136 | Private investor | N/A | |||||
James W. Kilman, Jr. (age 61) | Trustee | January 2019 | 136 | Burford Capital Limited (finance and investment management), Senior Advisor (since May 3, 2021), Chief Financial Officer (2019 - May 2, 2021); KielStrand Capital LLC (family office), Chief Executive Officer (since 2016) | Alpha-En Corporation, Director (2016-2019) |
Name, Age | Position(s) Held with Fund | Trustee/Officer Since(h) | Number of MFS Funds overseen by the Trustee | Principal Occupations During the Past Five Years | Other Directorships During the Past Five Years (j) | |||||
Clarence Otis, Jr. (age 66) | Trustee | March 2017 | 136 | Private investor | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director | |||||
Maryanne L. Roepke (age 66) | Trustee | May 2014 | 136 | Private investor | N/A | |||||
Laurie J. Thomsen (age 65) | Trustee | March 2005 | 136 | Private investor | The Travelers Companies, Director; Dycom Industries, Inc., Director |
Name, Age | Position(s) Held with Fund | Trustee/Officer Since(h) | Number of MFS Funds for which the Person is an Officer | Principal Occupations During the Past Five Years | ||||
OFFICERS | ||||||||
Christopher R. Bohane (k) (age 48) | Assistant Secretary and Assistant Clerk | July 2005 | 136 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | ||||
Kino Clark (k) (age 54) | Assistant Treasurer | January 2012 | 136 | Massachusetts Financial Services Company, Vice President | ||||
John W. Clark, Jr. (k) (age 55) | Assistant Treasurer | April 2017 | 136 | Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head - Treasurer's Office (until February 2017) | ||||
David L. DiLorenzo (k) (age 54) | President | July 2005 | 136 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 55) | Secretary and Clerk | April 2017 | 136 | Massachusetts Financial Services Company, Executive Vice President and General Counsel (since March 2017); Harris Associates (investment management), General Counsel (until January 2017) | ||||
Brian E. Langenfeld (k) (age 49) | Assistant Secretary and Assistant Clerk | June 2006 | 136 | Massachusetts Financial Services Company, Vice President and Senior Counsel |
Name, Age | Position(s) Held with Fund | Trustee/Officer Since(h) | Number of MFS Funds for which the Person is an Officer | Principal Occupations During the Past Five Years | ||||
Rosa E. Licea-Mailloux(k) (age 45) | Chief Compliance Officer | March 2022 | 136 | Massachusetts Financial Services Company, Vice President (since 2018); Director of Corporate Compliance (2018-2021), Senior Director Compliance (2021-2022), Senior Managing Director of North American Compliance & Chief Compliance Officer (since March 2022); Natixis Investment Managers (investment management), Funds Chief Compliance Officer, Deputy General Counsel & Senior Vice President (until 2018) | ||||
Amanda S. Mooradian (k) (age 43) | Assistant Secretary and Assistant Clerk | September 2018 | 136 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 51) | Assistant Secretary and Assistant Clerk | July 2005 | 136 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Kasey L. Phillips (k) (age 51) | Assistant Treasurer | September 2012 | 136 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 47) | Assistant Secretary and Assistant Clerk | October 2014 | 136 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
James O. Yost (k) (age 62) | Treasurer | September 1990 | 136 | Massachusetts Financial Services Company, Senior Vice President |
(h) | Date first appointed to serve as Trustee/Officer of an MFS Fund. Each Trustee has served continuously since appointment unless indicated otherwise. From January 2012 through December 2016, Messrs. DiLorenzo and Yost served as Treasurer and Deputy Treasurer of the Funds, respectively. |
(j) | Directorships or trusteeships of companies required to report to the Securities and Exchange Commission (i.e., “public companies”). |
(k) | “Interested person” of the Trust within the meaning of the Investment Company Act of 1940 (referred to as the 1940 Act), which is the principal federal law governing investment companies like the fund, as a result of a position with MFS. The address of MFS is 111 Huntington Avenue, Boston, Massachusetts 02199-7618. |
Investment Adviser | Custodian |
Massachusetts Financial Services Company 111 Huntington Avenue Boston, MA 02199-7618 | JPMorgan Chase Bank, NA 4 Metrotech Center New York, NY 11245 |
Distributor | Independent Registered Public Accounting Firm |
MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618 | Ernst & Young LLP 200 Clarendon Street Boston, MA 02116 |
Portfolio Manager(s) | |
Sanjay Natarajan Deividas Seferis |
FACTS | WHAT DOES MFS DO WITH YOUR PERSONAL INFORMATION? |
Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
What? | The types of personal information we collect and share depend on the product or service you have with us. This information can include: |
• Social Security number and account balances | |
• Account transactions and transaction history | |
• Checking account information and wire transfer instructions | |
When you are no longer our customer, we continue to share your information as described in this notice. |
How? | All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MFS chooses to share; and whether you can limit this sharing. |
Reasons we can share your personal information | Does MFS share? | Can you limit this sharing? |
For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus | Yes | No |
For our marketing purposes – to offer our products and services to you | No | We don't share |
For joint marketing with other financial companies | No | We don't share |
For our affiliates' everyday business purposes – information about your transactions and experiences | No | We don't share |
For our affiliates' everyday business purposes – information about your creditworthiness | No | We don't share |
For nonaffiliates to market to you | No | We don't share |
Questions? | Call 800-225-2606 or go to mfs.com. |
Who we are | |
Who is providing this notice? | MFS Funds, MFS Investment Management, MFS Institutional Advisors, Inc., and MFS Heritage Trust Company. |
What we do | |
How does MFS protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include procedural, electronic, and physical safeguards for the protection of the personal information we collect about you. |
How does MFS collect my personal information? | We collect your personal information, for example, when you |
• open an account or provide account information | |
• direct us to buy securities or direct us to sell your securities | |
• make a wire transfer | |
We also collect your personal information from others, such as credit bureaus, affiliates, or other companies. | |
Why can't I limit all sharing? | Federal law gives you the right to limit only |
• sharing for affiliates' everyday business purposes – information about your creditworthiness | |
• affiliates from using your information to market to you | |
• sharing for nonaffiliates to market to you | |
State laws and individual companies may give you additional rights to limit sharing. |
Definitions | |
Affiliates | Companies related by common ownership or control. They can be financial and nonfinancial companies. |
• MFS does not share personal information with affiliates, except for everyday business purposes as described on page one of this notice. | |
Nonaffiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies. |
• MFS does not share with nonaffiliates so they can market to you. | |
Joint marketing | A formal agreement between nonaffiliated financial companies that together market financial products or services to you. |
• MFS doesn't jointly market. |
Other important information |
If you own an MFS product or receive an MFS service in the name of a third party such as a bank or broker-dealer, their privacy policy may apply to you instead of ours. |
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back cover |
Microsoft Corp. | 3.8% |
Colgate-Palmolive Co. | 3.7% |
Cadence Design Systems, Inc. | 3.1% |
Charles Schwab Corp. | 2.6% |
Costco Wholesale Corp. | 2.4% |
Otis Worldwide Corp. | 2.3% |
Moody's Corp. | 2.3% |
Analog Devices, Inc. | 2.2% |
Rockwell Automation, Inc. | 2.1% |
Mastercard, Inc., “A” | 2.1% |
Information Technology | 30.0% |
Industrials | 22.0% |
Financials | 14.1% |
Consumer Staples | 8.8% |
Materials | 8.3% |
Health Care | 8.1% |
Consumer Discretionary | 3.0% |
Communication Services | 2.8% |
Real Estate | 1.0% |
(g) | 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. |
Timothy Dittmer and Benjamin Stone
Share Class | Class inception date | Life (t) |
A | 2/08/22 | (6.40)% |
C | 2/08/22 | (6.80)% |
I | 2/08/22 | (6.30)% |
R1 | 2/08/22 | (6.80)% |
R2 | 2/08/22 | (6.50)% |
R3 | 2/08/22 | (6.40)% |
R4 | 2/08/22 | (6.30)% |
R6 | 2/08/22 | (6.30)% |
Standard & Poor's 500 Stock Index (f) | (7.18)% |
A With Initial Sales Charge (5.75%) | (11.78)% |
C With CDSC (1% for 12 months) (v) | (7.73)% |
(f) | Source: FactSet Research Systems Inc. |
(t) | For the period from the class inception date through the stated period end. (See Notes to Performance Summary.) |
(v) | Assuming redemption at the end of the applicable period. |
(g) | “Standard & Poor's®” and “S&P®” are registered trademarks of Standard & Poor's Financial Services LLC (“S&P”) and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and sublicensed for certain purposes by MFS. The S&P 500® is a product of S&P Dow Jones Indices LLC, and has been licensed for use by MFS. MFS's product(s) is not sponsored, endorsed, sold, or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates, and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing in such product(s). |
February 8, 2022 through July 31, 2022
Share Class | Annualized Expense Ratio | Beginning Account Value 2/08/22 | Ending Account Value 7/31/22 | Expenses Paid During Period (p) 2/08/22 - 7/31/22 | |
A | Actual | 0.88% | $1,000.00 | $936.00 | $4.06 |
Hypothetical (h) | 0.88% | $1,000.00 | $1,020.43 | $4.41 | |
C | Actual | 1.63% | $1,000.00 | $932.00 | $7.51 |
Hypothetical (h) | 1.63% | $1,000.00 | $1,016.71 | $8.15 | |
I | Actual | 0.63% | $1,000.00 | $937.00 | $2.91 |
Hypothetical (h) | 0.63% | $1,000.00 | $1,021.67 | $3.16 | |
R1 | Actual | 1.63% | $1,000.00 | $932.00 | $7.51 |
Hypothetical (h) | 1.63% | $1,000.00 | $1,016.71 | $8.15 | |
R2 | Actual | 1.13% | $1,000.00 | $935.00 | $5.21 |
Hypothetical (h) | 1.13% | $1,000.00 | $1,019.19 | $5.66 | |
R3 | Actual | 0.88% | $1,000.00 | $936.00 | $4.06 |
Hypothetical (h) | 0.88% | $1,000.00 | $1,020.43 | $4.41 | |
R4 | Actual | 0.63% | $1,000.00 | $937.00 | $2.91 |
Hypothetical (h) | 0.63% | $1,000.00 | $1,021.67 | $3.16 | |
R6 | Actual | 0.62% | $1,000.00 | $937.00 | $2.86 |
Hypothetical (h) | 0.62% | $1,000.00 | $1,021.72 | $3.11 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 174/365 for actual expenses (for Hypothetical Expenses, multiplied by 181/365 to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. For actual expenses paid, the calculation is based on the period from the commencement of the fund's investment operations, February 8, 2022, through July 31, 2022. For hypothetical expenses paid, it is assumed that the fund was in existence for the entire six month period ended July 31, 2022. |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 98.1% | ||||
Aerospace & Defense – 1.1% | ||||
Honeywell International, Inc. | 148 | $28,484 | ||
Alcoholic Beverages – 1.5% | ||||
Diageo PLC | 428 | $20,343 | ||
Pernod Ricard S.A. | 89 | 17,516 | ||
$37,859 | ||||
Apparel Manufacturers – 2.0% | ||||
LVMH Moet Hennessy Louis Vuitton SE | 29 | $20,172 | ||
NIKE, Inc., “B” | 252 | 28,960 | ||
$49,132 | ||||
Brokerage & Asset Managers – 4.2% | ||||
Charles Schwab Corp. | 928 | $64,079 | ||
CME Group, Inc. | 125 | 24,935 | ||
NASDAQ, Inc. | 86 | 15,557 | ||
$104,571 | ||||
Business Services – 5.9% | ||||
Accenture PLC, “A” | 146 | $44,714 | ||
Equifax, Inc. | 161 | 33,634 | ||
Ferguson PLC | 164 | 20,677 | ||
LiveRamp Holdings, Inc. (a) | 136 | 3,619 | ||
TransUnion | 224 | 17,748 | ||
Verisk Analytics, Inc., “A” | 139 | 26,445 | ||
$146,837 | ||||
Computer Software – 16.1% | ||||
Adobe Systems, Inc. (a) | 112 | $45,933 | ||
Altair Engineering, Inc., “A” (a) | 260 | 15,317 | ||
ANSYS, Inc. (a) | 129 | 35,990 | ||
Autodesk, Inc. (a) | 120 | 25,958 | ||
Cadence Design Systems, Inc. (a) | 420 | 78,154 | ||
Microsoft Corp. | 338 | 94,890 | ||
PTC, Inc. (a) | 91 | 11,228 | ||
Salesforce, Inc. (a) | 224 | 41,220 | ||
Synopsys, Inc. (a) | 138 | 50,715 | ||
$399,405 | ||||
Computer Software - Systems – 0.6% | ||||
Workday, Inc. (a) | 103 | $15,975 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Construction – 8.3% | ||||
Martin Marietta Materials, Inc. | 99 | $34,856 | ||
Otis Worldwide Corp. | 742 | 58,002 | ||
Sherwin-Williams Co. | 100 | 24,194 | ||
Simpson Manufacturing Co., Inc. | 117 | 12,084 | ||
Vulcan Materials Co. | 305 | 50,426 | ||
Watsco, Inc. | 97 | 26,573 | ||
$206,135 | ||||
Consumer Products – 4.8% | ||||
Colgate-Palmolive Co. | 1,156 | $91,023 | ||
Estee Lauder Cos., Inc., “A” | 107 | 29,222 | ||
$120,245 | ||||
Electrical Equipment – 4.2% | ||||
Johnson Controls International PLC | 501 | $27,009 | ||
Pentair PLC | 208 | 10,169 | ||
Rockwell Automation, Inc. | 205 | 52,332 | ||
TE Connectivity Ltd. | 101 | 13,507 | ||
$103,017 | ||||
Electronics – 8.7% | ||||
Analog Devices, Inc. | 311 | $53,479 | ||
Applied Materials, Inc. | 182 | 19,288 | ||
KLA Corp. | 54 | 20,711 | ||
Lam Research Corp. | 49 | 24,525 | ||
Micron Technology, Inc. | 177 | 10,949 | ||
Novanta, Inc. (a) | 84 | 12,953 | ||
Power Integrations, Inc. | 69 | 5,866 | ||
Semtech Corp. (a) | 72 | 4,488 | ||
Silicon Laboratories, Inc. (a) | 114 | 16,813 | ||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 218 | 19,289 | ||
Texas Instruments, Inc. | 148 | 26,476 | ||
$214,837 | ||||
Forest & Paper Products – 0.5% | ||||
Rayonier, Inc., REIT | 298 | $11,250 | ||
General Merchandise – 2.4% | ||||
Costco Wholesale Corp. | 111 | $60,084 | ||
Insurance – 5.2% | ||||
Aon PLC | 169 | $49,186 | ||
Arthur J. Gallagher & Co. | 205 | 36,693 | ||
Marsh & McLennan Cos., Inc. | 184 | 30,169 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Insurance – continued | ||||
Willis Towers Watson PLC | 57 | $11,795 | ||
$127,843 | ||||
Internet – 1.2% | ||||
Alphabet, Inc., “A” (a) | 260 | $30,243 | ||
Leisure & Toys – 1.6% | ||||
Activision Blizzard, Inc. | 219 | $17,509 | ||
Electronic Arts, Inc. | 116 | 15,223 | ||
Take-Two Interactive Software, Inc. (a) | 57 | 7,565 | ||
$40,297 | ||||
Machinery & Tools – 9.4% | ||||
Fastenal Co. | 379 | $19,465 | ||
Graco, Inc. | 359 | 24,110 | ||
IDEX Corp. | 185 | 38,619 | ||
Ingersoll Rand, Inc. | 405 | 20,169 | ||
MSA Safety Inc. | 112 | 14,374 | ||
Nordson Corp. | 134 | 30,953 | ||
RBC Bearings, Inc. (a) | 69 | 16,284 | ||
Trane Technologies PLC | 157 | 23,077 | ||
Watts Water Technologies, “A” | 328 | 45,307 | ||
$232,358 | ||||
Medical & Health Technology & Services – 0.9% | ||||
ICON PLC (a) | 93 | $22,436 | ||
Medical Equipment – 7.2% | ||||
Agilent Technologies, Inc. | 381 | $51,092 | ||
Bio-Techne Corp. | 25 | 9,632 | ||
Bruker BioSciences Corp. | 655 | 44,900 | ||
Danaher Corp. | 141 | 41,097 | ||
Envista Holdings Corp. (a) | 544 | 22,114 | ||
Maravai Lifesciences Holdings, Inc., “A” (a) | 414 | 10,801 | ||
$179,636 | ||||
Other Banks & Diversified Financials – 6.8% | ||||
Mastercard, Inc., “A” | 146 | $51,653 | ||
Moody's Corp. | 182 | 56,466 | ||
Northern Trust Corp. | 173 | 17,262 | ||
S&P Global, Inc. | 115 | 43,347 | ||
$168,728 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Precious Metals & Minerals – 3.0% | ||||
Agnico Eagle Mines Ltd. | 65 | $2,795 | ||
Franco-Nevada Corp. | 244 | 31,243 | ||
Royal Gold, Inc. | 231 | 24,202 | ||
Wheaton Precious Metals Corp. | 445 | 15,270 | ||
$73,510 | ||||
Real Estate – 0.5% | ||||
CBRE Group, Inc., “A” (a) | 151 | $12,929 | ||
Specialty Chemicals – 1.0% | ||||
Corteva, Inc. | 206 | $11,856 | ||
RPM International, Inc. | 138 | 12,475 | ||
$24,331 | ||||
Specialty Stores – 1.0% | ||||
Amazon.com, Inc. (a) | 180 | $24,291 | ||
Total Common Stocks (Identified Cost, $2,573,873) | $2,434,433 | |||
Investment Companies (h) – 4.2% | ||||
Money Market Funds – 4.2% | ||||
MFS Institutional Money Market Portfolio, 1.72% (v) (Identified Cost, $104,005) | 104,008 | $104,008 | ||
Other Assets, Less Liabilities – (2.3)% | (57,245) | |||
Net Assets – 100.0% | $2,481,196 |
(a) | Non-income producing security. | |||
(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 $104,008 and $2,434,433, respectively. | |||
(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: | |
ADR | American Depositary Receipt |
REIT | Real Estate Investment Trust |
Assets | |
Investments in unaffiliated issuers, at value (identified cost, $2,573,873) | $2,434,433 |
Investments in affiliated issuers, at value (identified cost, $104,005) | 104,008 |
Receivables for | |
Dividends | 1,542 |
Other assets | 7 |
Total assets | $2,539,990 |
Liabilities | |
Payable to affiliates | |
Investment adviser | $10,060 |
Administrative services fee | 192 |
Shareholder servicing costs | 86 |
Distribution and service fees | 19 |
Payable for independent Trustees' compensation | 14 |
Accrued expenses and other liabilities | 48,423 |
Total liabilities | $58,794 |
Net assets | $2,481,196 |
Net assets consist of | |
Paid-in capital | $2,637,603 |
Total distributable earnings (loss) | (156,407) |
Net assets | $2,481,196 |
Shares of beneficial interest outstanding | 264,951 |
Net assets | Shares outstanding | Net asset value per share (a) | |
Class A | $154,120 | 16,473 | $9.36 |
Class C | 56,258 | 6,034 | 9.32 |
Class I | 444,357 | 47,444 | 9.37 |
Class R1 | 46,618 | 5,000 | 9.32 |
Class R2 | 46,729 | 5,000 | 9.35 |
Class R3 | 46,785 | 5,000 | 9.36 |
Class R4 | 46,841 | 5,000 | 9.37 |
Class R6 | 1,639,488 | 175,000 | 9.37 |
(a) | Maximum offering price per share was equal to the net asset value per share for all share classes, except for Class A, for which the maximum offering price per share was $9.93 [100 / 94.25 x $9.36]. On sales of $50,000 or more, the maximum offering price of Class A shares is reduced. A contingent deferred sales charge may be imposed on redemptions of Class A and Class C shares. Redemption price per share was equal to the net asset value per share for Classes I, R1, R2, R3, R4, and R6. |
Net investment income (loss) | |
Income | |
Dividends | $11,474 |
Dividends from affiliated issuers | 249 |
Other | 2 |
Foreign taxes withheld | (207) |
Total investment income | $11,518 |
Expenses | |
Management fee | $6,787 |
Distribution and service fees | 798 |
Shareholder servicing costs | 199 |
Administrative services fee | 8,343 |
Independent Trustees' compensation | 2,014 |
Custodian fee | 4,988 |
Shareholder communications | 2,170 |
Audit and tax fees | 38,062 |
Legal fees | 1,556 |
Registration fees | 12,636 |
Form N-CEN/N-PORT preparation fees | 4,900 |
Miscellaneous | 4,623 |
Total expenses | $87,076 |
Reduction of expenses by investment adviser | (79,230) |
Net expenses | $7,846 |
Net investment income (loss) | $3,672 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $(21,131) |
Affiliated issuers | (1) |
Foreign currency | 81 |
Net realized gain (loss) | $(21,051) |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $(139,440) |
Affiliated issuers | 3 |
Translation of assets and liabilities in foreign currencies | (2) |
Net unrealized gain (loss) | $(139,439) |
Net realized and unrealized gain (loss) | $(160,490) |
Change in net assets from operations | $(156,818) |
(c) For the period from the commencement of the fund’s investment operations, February 8, 2022, through the stated period end. |
Year ended | |
7/31/22 (c) | |
Change in net assets | |
From operations | |
Net investment income (loss) | $3,672 |
Net realized gain (loss) | (21,051) |
Net unrealized gain (loss) | (139,439) |
Change in net assets from operations | $(156,818) |
Change in net assets from fund share transactions | $2,638,014 |
Total change in net assets | $2,481,196 |
Net assets | |
At beginning of period | — |
At end of period | $2,481,196 |
(c) | For the period from the commencement of the fund’s investment operations, February 8, 2022, through the stated period end. |
Class A | Year ended |
7/31/22(c) | |
Net asset value, beginning of period | $10.00 |
Income (loss) from investment operations | |
Net investment income (loss) (d) | $0.01 |
Net realized and unrealized gain (loss) | (0.65) |
Total from investment operations | $(0.64) |
Net asset value, end of period (x) | $9.36 |
Total return (%) (r)(s)(t)(x) | (6.40)(n) |
Ratios (%) (to average net assets) and Supplemental data: | |
Expenses before expense reductions (f) | 7.90(a) |
Expenses after expense reductions (f) | 0.88(a) |
Net investment income (loss) | 0.15(a) |
Portfolio turnover | 7(n) |
Net assets at end of period (000 omitted) | $154 |
Class C | Year ended |
7/31/22(c) | |
Net asset value, beginning of period | $10.00 |
Income (loss) from investment operations | |
Net investment income (loss) (d) | $(0.03) |
Net realized and unrealized gain (loss) | (0.65) |
Total from investment operations | $(0.68) |
Net asset value, end of period (x) | $9.32 |
Total return (%) (r)(s)(t)(x) | (6.80)(n) |
Ratios (%) (to average net assets) and Supplemental data: | |
Expenses before expense reductions (f) | 8.46(a) |
Expenses after expense reductions (f) | 1.63(a) |
Net investment income (loss) | (0.59)(a) |
Portfolio turnover | 7(n) |
Net assets at end of period (000 omitted) | $56 |
Class I | Year ended |
7/31/22(c) | |
Net asset value, beginning of period | $10.00 |
Income (loss) from investment operations | |
Net investment income (loss) (d) | $0.02 |
Net realized and unrealized gain (loss) | (0.65) |
Total from investment operations | $(0.63) |
Net asset value, end of period (x) | $9.37 |
Total return (%) (r)(s)(t)(x) | (6.30)(n) |
Ratios (%) (to average net assets) and Supplemental data: | |
Expenses before expense reductions (f) | 7.34(a) |
Expenses after expense reductions (f) | 0.63(a) |
Net investment income (loss) | 0.37(a) |
Portfolio turnover | 7(n) |
Net assets at end of period (000 omitted) | $444 |
Class R1 | Year ended |
7/31/22(c) | |
Net asset value, beginning of period | $10.00 |
Income (loss) from investment operations | |
Net investment income (loss) (d) | $(0.03) |
Net realized and unrealized gain (loss) | (0.65) |
Total from investment operations | $(0.68) |
Net asset value, end of period (x) | $9.32 |
Total return (%) (r)(s)(t)(x) | (6.80)(n) |
Ratios (%) (to average net assets) and Supplemental data: | |
Expenses before expense reductions (f) | 8.71(a) |
Expenses after expense reductions (f) | 1.63(a) |
Net investment income (loss) | (0.59)(a) |
Portfolio turnover | 7(n) |
Net assets at end of period (000 omitted) | $47 |
Class R2 | Year ended |
7/31/22(c) | |
Net asset value, beginning of period | $10.00 |
Income (loss) from investment operations | |
Net investment income (loss) (d) | $(0.01) |
Net realized and unrealized gain (loss) | (0.64) |
Total from investment operations | $(0.65) |
Net asset value, end of period (x) | $9.35 |
Total return (%) (r)(s)(t)(x) | (6.50)(n) |
Ratios (%) (to average net assets) and Supplemental data: | |
Expenses before expense reductions (f) | 8.21(a) |
Expenses after expense reductions (f) | 1.13(a) |
Net investment income (loss) | (0.11)(a) |
Portfolio turnover | 7(n) |
Net assets at end of period (000 omitted) | $47 |
Class R3 | Year ended |
7/31/22(c) | |
Net asset value, beginning of period | $10.00 |
Income (loss) from investment operations | |
Net investment income (loss) (d) | $0.01 |
Net realized and unrealized gain (loss) | (0.65) |
Total from investment operations | $(0.64) |
Net asset value, end of period (x) | $9.36 |
Total return (%) (r)(s)(t)(x) | (6.40)(n) |
Ratios (%) (to average net assets) and Supplemental data: | |
Expenses before expense reductions (f) | 7.95(a) |
Expenses after expense reductions (f) | 0.88(a) |
Net investment income (loss) | 0.13(a) |
Portfolio turnover | 7(n) |
Net assets at end of period (000 omitted) | $47 |
Class R4 | Year ended |
7/31/22(c) | |
Net asset value, beginning of period | $10.00 |
Income (loss) from investment operations | |
Net investment income (loss) (d) | $0.02 |
Net realized and unrealized gain (loss) | (0.65) |
Total from investment operations | $(0.63) |
Net asset value, end of period (x) | $9.37 |
Total return (%) (r)(s)(t)(x) | (6.30)(n) |
Ratios (%) (to average net assets) and Supplemental data: | |
Expenses before expense reductions (f) | 7.70(a) |
Expenses after expense reductions (f) | 0.63(a) |
Net investment income (loss) | 0.39(a) |
Portfolio turnover | 7(n) |
Net assets at end of period (000 omitted) | $47 |
Class R6 | Year ended |
7/31/22(c) | |
Net asset value, beginning of period | $10.00 |
Income (loss) from investment operations | |
Net investment income (loss) (d) | $0.02 |
Net realized and unrealized gain (loss) | (0.65) |
Total from investment operations | $(0.63) |
Net asset value, end of period (x) | $9.37 |
Total return (%) (r)(s)(t)(x) | (6.30)(n) |
Ratios (%) (to average net assets) and Supplemental data: | |
Expenses before expense reductions (f) | 7.69(a) |
Expenses after expense reductions (f) | 0.62(a) |
Net investment income (loss) | 0.40(a) |
Portfolio turnover | 7(n) |
Net assets at end of period (000 omitted) | $1,639 |
(a) | Annualized. |
(c) | For the period from the commencement of the fund’s investment operations, February 8, 2022, through the stated period end. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. See Note 2 in the Notes to Financial Statements for additional information. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
Equity Securities: | ||||
United States | $2,264,692 | $— | $— | $2,264,692 |
Canada | 49,308 | — | — | 49,308 |
United Kingdom | 20,677 | 20,343 | — | 41,020 |
France | — | 37,688 | — | 37,688 |
Ireland | 22,436 | — | — | 22,436 |
Taiwan | 19,289 | — | — | 19,289 |
Mutual Funds | 104,008 | — | — | 104,008 |
Total | $2,480,410 | $58,031 | $— | $2,538,441 |
As of 7/31/22 | |
Cost of investments | $2,683,192 |
Gross appreciation | 56,729 |
Gross depreciation | (201,480) |
Net unrealized appreciation (depreciation) | $(144,751) |
Undistributed ordinary income | 4,164 |
Capital loss carryforwards | (15,818) |
Other temporary differences | (2) |
Total distributable earnings (loss) | $(156,407) |
Short-Term | $(15,818) |
Up to $1 billion | 0.60% |
In excess of $1 billion and up to $2.5 billion | 0.55% |
In excess of $2.5 billion and up to $5 billion | 0.45% |
In excess of $5 billion and up to $10 billion | 0.42% |
In excess of $10 billion | 0.40% |
Classes | |||||||
A | C | I | R1 | R2 | R3 | R4 | R6 |
0.94% | 1.69% | 0.69% | 1.69% | 1.19% | 0.94% | 0.69% | 0.62% |
Distribution Fee Rate (d) | Service Fee Rate (d) | Total Distribution Plan (d) | Annual Effective Rate (e) | Distribution and Service Fee | |
Class A | — | 0.25% | 0.25% | 0.25% | $ 176 |
Class C | 0.75% | 0.25% | 1.00% | 1.00% | 238 |
Class R1 | 0.75% | 0.25% | 1.00% | 1.00% | 219 |
Class R2 | 0.25% | 0.25% | 0.50% | 0.50% | 110 |
Class R3 | — | 0.25% | 0.25% | 0.25% | 55 |
Total Distribution and Service Fees | $798 |
(d) | In accordance with the distribution plan for certain classes, the fund pays distribution and/or service fees equal to these annual percentage rates of each class’s average daily net assets. The distribution and service fee rates disclosed by class represent the current rates in effect at the end of the reporting period. Any rate changes, if applicable, are detailed below. |
(e) | The annual effective rates represent actual fees incurred under the distribution plan for the period ended July 31, 2022 based on each class's average daily net assets. MFD has voluntarily agreed to rebate a portion of each class's 0.25% service fee attributable to accounts for which there is no financial intermediary specified on the account except for accounts attributable to MFS or its affiliates' seed money. There were no service fee rebates for the period ended July 31, 2022. |
Class | Shares | Amount |
Class A | 15,000 | $150,000 |
Class C | 5,000 | 50,000 |
Class I | 5,000 | 50,000 |
Class R1 | 5,000 | 50,000 |
Class R2 | 5,000 | 50,000 |
Class R3 | 5,000 | 50,000 |
Class R4 | 5,000 | 50,000 |
Class R6 | 175,000 | 1,750,000 |
Year ended 7/31/22 (c) | ||
Shares | Amount | |
Shares sold | ||
Class A | 18,732 | $184,633 |
Class C | 6,034 | 58,864 |
Class I | 47,444 | 464,037 |
Class R1 | 5,000 | 50,000 |
Class R2 | 5,000 | 50,000 |
Class R3 | 5,000 | 50,000 |
Class R4 | 5,000 | 50,000 |
Class R6 | 175,000 | 1,750,000 |
267,210 | $2,657,534 | |
Shares reacquired | ||
Class A | (2,259) | $(19,520) |
Net change | ||
Class A | 16,473 | $165,113 |
Class C | 6,034 | 58,864 |
Class I | 47,444 | 464,037 |
Class R1 | 5,000 | 50,000 |
Class R2 | 5,000 | 50,000 |
Class R3 | 5,000 | 50,000 |
Class R4 | 5,000 | 50,000 |
Class R6 | 175,000 | 1,750,000 |
264,951 | $2,638,014 |
(c) | For the period from the commencement of the fund’s investment operations, February 8, 2022, through the stated period end. |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $— | $543,020 | $439,014 | $(1) | $3 | $104,008 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $249 | $— |
September 15, 2022
Name, Age | Position(s) Held with Fund | Trustee/Officer Since(h) | Number of MFS Funds overseen by the Trustee | Principal Occupations During the Past Five Years | Other Directorships During the Past Five Years (j) | |||||
INTERESTED TRUSTEES | ||||||||||
Michael W. Roberge (k) (age 55) | Trustee | January 2021 | 136 | Massachusetts Financial Services Company, Chairman (since January 2021); Chief Executive Officer (since January 2017); Director; Chairman of the Board (since January 2022); President (until December 2018); Chief Investment Officer (until December 2018) | N/A | |||||
INDEPENDENT TRUSTEES | ||||||||||
John P. Kavanaugh (age 67) | Trustee and Chair of Trustees | January 2009 | 136 | Private investor | N/A | |||||
Steven E. Buller (age 71) | Trustee | February 2014 | 136 | Private investor | N/A | |||||
John A. Caroselli (age 68) | Trustee | March 2017 | 136 | Private investor; JC Global Advisors, LLC (management consulting), President (since 2015) | N/A | |||||
Maureen R. Goldfarb (age 67) | Trustee | January 2009 | 136 | Private investor | N/A | |||||
Peter D. Jones (age 67) | Trustee | January 2019 | 136 | Private investor | N/A | |||||
James W. Kilman, Jr. (age 61) | Trustee | January 2019 | 136 | Burford Capital Limited (finance and investment management), Senior Advisor (since May 3, 2021), Chief Financial Officer (2019 - May 2, 2021); KielStrand Capital LLC (family office), Chief Executive Officer (since 2016) | Alpha-En Corporation, Director (2016-2019) |
Name, Age | Position(s) Held with Fund | Trustee/Officer Since(h) | Number of MFS Funds overseen by the Trustee | Principal Occupations During the Past Five Years | Other Directorships During the Past Five Years (j) | |||||
Clarence Otis, Jr. (age 66) | Trustee | March 2017 | 136 | Private investor | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director | |||||
Maryanne L. Roepke (age 66) | Trustee | May 2014 | 136 | Private investor | N/A | |||||
Laurie J. Thomsen (age 65) | Trustee | March 2005 | 136 | Private investor | The Travelers Companies, Director; Dycom Industries, Inc., Director |
Name, Age | Position(s) Held with Fund | Trustee/Officer Since(h) | Number of MFS Funds for which the Person is an Officer | Principal Occupations During the Past Five Years | ||||
OFFICERS | ||||||||
Christopher R. Bohane (k) (age 48) | Assistant Secretary and Assistant Clerk | July 2005 | 136 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | ||||
Kino Clark (k) (age 54) | Assistant Treasurer | January 2012 | 136 | Massachusetts Financial Services Company, Vice President | ||||
John W. Clark, Jr. (k) (age 55) | Assistant Treasurer | April 2017 | 136 | Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head - Treasurer's Office (until February 2017) | ||||
David L. DiLorenzo (k) (age 54) | President | July 2005 | 136 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 55) | Secretary and Clerk | April 2017 | 136 | Massachusetts Financial Services Company, Executive Vice President and General Counsel (since March 2017); Harris Associates (investment management), General Counsel (until January 2017) | ||||
Brian E. Langenfeld (k) (age 49) | Assistant Secretary and Assistant Clerk | June 2006 | 136 | Massachusetts Financial Services Company, Vice President and Senior Counsel |
Name, Age | Position(s) Held with Fund | Trustee/Officer Since(h) | Number of MFS Funds for which the Person is an Officer | Principal Occupations During the Past Five Years | ||||
Rosa E. Licea-Mailloux(k) (age 45) | Chief Compliance Officer | March 2022 | 136 | Massachusetts Financial Services Company, Vice President (since 2018); Director of Corporate Compliance (2018-2021), Senior Director Compliance (2021-2022), Senior Managing Director of North American Compliance & Chief Compliance Officer (since March 2022); Natixis Investment Managers (investment management), Funds Chief Compliance Officer, Deputy General Counsel & Senior Vice President (until 2018) | ||||
Amanda S. Mooradian (k) (age 43) | Assistant Secretary and Assistant Clerk | September 2018 | 136 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 51) | Assistant Secretary and Assistant Clerk | July 2005 | 136 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Kasey L. Phillips (k) (age 51) | Assistant Treasurer | September 2012 | 136 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 47) | Assistant Secretary and Assistant Clerk | October 2014 | 136 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
James O. Yost (k) (age 62) | Treasurer | September 1990 | 136 | Massachusetts Financial Services Company, Senior Vice President |
(h) | Date first appointed to serve as Trustee/Officer of an MFS Fund. Each Trustee has served continuously since appointment unless indicated otherwise. From January 2012 through December 2016, Messrs. DiLorenzo and Yost served as Treasurer and Deputy Treasurer of the Funds, respectively. |
(j) | Directorships or trusteeships of companies required to report to the Securities and Exchange Commission (i.e., “public companies”). |
(k) | “Interested person” of the Trust within the meaning of the Investment Company Act of 1940 (referred to as the 1940 Act), which is the principal federal law governing investment companies like the fund, as a result of a position with MFS. The address of MFS is 111 Huntington Avenue, Boston, Massachusetts 02199-7618. |
Investment Adviser | Custodian |
Massachusetts Financial Services Company 111 Huntington Avenue Boston, MA 02199-7618 | JPMorgan Chase Bank, NA 4 Metrotech Center New York, NY 11245 |
Distributor | Independent Registered Public Accounting Firm |
MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618 | Ernst & Young LLP 200 Clarendon Street Boston, MA 02116 |
Portfolio Manager(s) | |
Timothy Dittmer Benjamin Stone |
FACTS | WHAT DOES MFS DO WITH YOUR PERSONAL INFORMATION? |
Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
What? | The types of personal information we collect and share depend on the product or service you have with us. This information can include: |
• Social Security number and account balances | |
• Account transactions and transaction history | |
• Checking account information and wire transfer instructions | |
When you are no longer our customer, we continue to share your information as described in this notice. |
How? | All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MFS chooses to share; and whether you can limit this sharing. |
Reasons we can share your personal information | Does MFS share? | Can you limit this sharing? |
For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus | Yes | No |
For our marketing purposes – to offer our products and services to you | No | We don't share |
For joint marketing with other financial companies | No | We don't share |
For our affiliates' everyday business purposes – information about your transactions and experiences | No | We don't share |
For our affiliates' everyday business purposes – information about your creditworthiness | No | We don't share |
For nonaffiliates to market to you | No | We don't share |
Questions? | Call 800-225-2606 or go to mfs.com. |
Who we are | |
Who is providing this notice? | MFS Funds, MFS Investment Management, MFS Institutional Advisors, Inc., and MFS Heritage Trust Company. |
What we do | |
How does MFS protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include procedural, electronic, and physical safeguards for the protection of the personal information we collect about you. |
How does MFS collect my personal information? | We collect your personal information, for example, when you |
• open an account or provide account information | |
• direct us to buy securities or direct us to sell your securities | |
• make a wire transfer | |
We also collect your personal information from others, such as credit bureaus, affiliates, or other companies. | |
Why can't I limit all sharing? | Federal law gives you the right to limit only |
• sharing for affiliates' everyday business purposes – information about your creditworthiness | |
• affiliates from using your information to market to you | |
• sharing for nonaffiliates to market to you | |
State laws and individual companies may give you additional rights to limit sharing. |
Definitions | |
Affiliates | Companies related by common ownership or control. They can be financial and nonfinancial companies. |
• MFS does not share personal information with affiliates, except for everyday business purposes as described on page one of this notice. | |
Nonaffiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies. |
• MFS does not share with nonaffiliates so they can market to you. | |
Joint marketing | A formal agreement between nonaffiliated financial companies that together market financial products or services to you. |
• MFS doesn't jointly market. |
Other important information |
If you own an MFS product or receive an MFS service in the name of a third party such as a bank or broker-dealer, their privacy policy may apply to you instead of ours. |
Item 1(b):
Not applicable
ITEM 2. CODE OF ETHICS.
The Registrant has adopted a Code of Ethics (the "Code") pursuant to Section 406 of the Sarbanes-Oxley Act and as defined in Form N-CSR that applies to the Registrant's principal executive officer and principal financial and accounting officer. During the period covered by this report, the Registrant has not amended any provision in its Code that relates to an element of the Code's definition enumerated in paragraph (b) of Item 2 of this Form N-CSR. During the period covered by this report, the Registrant did not grant a waiver, including an implicit waiver, from any provision of the Code.
A copy of the Code is filed as an exhibit to this Form N-CSR.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Messrs. Steven E. Buller, James Kilman, and Clarence Otis, Jr. and Ms. Maryanne L. Roepke, members of the Audit Committee, have been determined by the Board of Trustees in their reasonable business judgment to meet the definition of "audit committee financial expert" as such term is defined in Form N-CSR. In addition, Messrs. Buller, Kilman, and Otis and Ms. Roepke are "independent" members of the Audit Committee (as such term has been defined by the Securities and Exchange Commission in regulations implementing Section 407 of the Sarbanes-Oxley Act of 2002). The Securities and Exchange Commission has stated that the designation of a person as an audit committee financial expert pursuant to this Item 3 on the Form N-CSR does not impose on such a person any duties, obligations or liability that are greater than the duties, obligations or liability imposed on such person as a member of the Audit Committee and the Board of Trustees in the absence of such designation or identification.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Items 4(a) through 4(d) and 4(g):
The Board of Trustees has appointed Ernst & Young LLP ("E&Y") to serve as independent accountants to the series of the Registrant (each a "Fund" and collectively the "Funds"). The tables below set forth the audit fees billed to each Fund as well as fees for non-audit services provided to each Fund and/or to each Fund's investment adviser, Massachusetts Financial Services Company ("MFS") and to various entities either controlling, controlled by, or under common control with MFS that provide ongoing services to the Fund ("MFS Related Entities").
For the fiscal years ended July 31, 2022 and 2021, audit fees billed to each Fund by E&Y were as follows:
Fees billed by E&Y: |
| Audit Fees | |
| 2022 |
| 2021 |
MFS Emerging Markets Equity Research | 26,300 | 26,300 | |
Fund | |||
|
| ||
MFS Equity Income Fund | 44,640 | 42,394 | |
MFS Intrinsic Value Fund** | 25,800 | N/A** | |
Total | 96,740 | 68,694 |
For the fiscal years ended July 31, 2022 and 2021, fees billed by E&Y for audit-related, tax and other services provided to each Fund and for audit-related, tax and other services provided to MFS and MFS Related Entities were as follows:
Fees billed by E&Y: |
| Audit-Related Fees1 | Tax Fees2 | All Other Fees3 | ||||||||
|
| 2022 | 2021 |
| 2022 |
| 2021 | 2022 |
| 2021 |
| |
To MFS Emerging Markets |
| 0 | 0 |
| 632 |
| 9,800 | 0 |
| 1,000 |
| |
Equity Research Fund |
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
| |
To MFS Equity Income Fund |
| 0 | 0 |
| 632 |
| 9,340 | 45 |
| 1,050 |
| |
To MFS Intrinsic Value |
| 0 | N/A** | 632 |
| N/A** | 0 |
| N/A** | |||
Fund** |
|
|
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
| |
Total fees billed by E&Y |
|
|
|
|
|
|
|
|
|
|
|
|
To above Funds |
| 0 | 0 |
| 1,896 |
| 19,140 | 45 |
| 2,050 |
| |
|
|
|
|
|
|
|
| |||||
Fees billed by E&Y: |
| Audit-Related Fees1 | Tax Fees2 | All Other Fees3 | ||||||||
|
| 2022 | 2021 |
| 2022 |
| 2021 | 2022 |
| 20214 |
| |
To MFS and MFS Related |
|
|
|
|
|
|
|
|
|
|
|
|
Entities of MFS Emerging |
| 662,511 | 1,760,124 | 0 |
| 0 |
| 111,415 |
| 110,620 | ||
Markets Equity Research |
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
| |
Fund* |
|
|
|
|
|
|
|
|
|
|
|
|
To MFS and MFS Related |
|
|
|
|
|
|
|
|
|
|
|
|
Entities of MFS Equity Income |
| 662,511 | 1,760,124 | 0 |
| 0 |
| 111,415 |
| 110,620 | ||
Fund* |
|
|
|
|
|
|
|
|
|
|
|
|
To MFS and MFS Related |
|
|
|
|
|
|
|
|
|
|
|
|
Entities of MFS Intrinsic |
| 662,511 | N/A** | 0 |
| N/A** | 111,415 |
| N/A** | |||
Value Fund* ** |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Fees billed by E&Y: |
|
|
| Aggregate fees for non-audit services: | ||||||||
|
|
|
|
| 2022 |
|
|
| 20214 |
|
|
|
To MFS Emerging Markets Equity Research Fund, |
| 954,988 |
|
| 2,147,974 |
|
| |||||
MFS and MFS Related Entities# |
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
| ||
To MFS Equity Income Fund, MFS and MFS Related |
| 955,033 |
|
| 2,147,564 |
|
| |||||
Entities# |
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
| ||
To MFS Intrinsic Value Fund, MFS and MFS Related |
| 954,988 |
|
| N/A** |
|
| |||||
Entities# ** |
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
**MFS Intrinsic Value Fund commenced investment operations on February 8, 2022.
*This amount reflects the fees billed to MFS and MFS Related Entities for non-audit services relating directly to the operations and financial reporting of the Funds (portions of which services also related to the operations and financial reporting of other funds within the MFS Funds complex).
# This amount reflects the aggregate fees billed by E&Y for non-audit services rendered to the Funds and for non-audit services rendered to MFS and the MFS Related Entities.
1 The fees included under "Audit-Related Fees" are fees related to assurance and related services that are reasonably related to the performance of the audit or review of financial statements, but not reported under ''Audit Fees,'' including accounting consultations, agreed-upon procedure reports, attestation reports, comfort letters and internal control reviews.
2The fees included under "Tax Fees" are fees associated with tax compliance, tax advice and tax planning, including services relating to the filing or amendment of federal, state or local income tax returns, regulated investment company qualification reviews and tax distribution and analysis.
3The fees under "All Other Fees" are fees for products and services provided by E&Y other than those reported under "Audit Fees," "Audit-Related Fees" and "Tax Fees", including fees for services related to reviews of internal controls and Rule 38a-1 compliance program.
4Certain fees reported in 2021 have been restated in this filing from those reported in the Registrant's filing for the reporting period ended July 31, 2021.
Item 4(e)(1):
Set forth below are the policies and procedures established by the Audit Committee of the Board of Trustees relating to the pre-approval of audit and non-audit related services:
To the extent required by applicable law, pre-approval by the Audit Committee of the Board is needed for all audit and permissible non-audit services rendered to the Fund and all permissible non-audit services rendered to MFS or MFS Related Entities if the services relate directly to the operations and financial reporting of the Registrant. Pre-approval is currently on an engagement-by-engagement basis. In the event pre-approval of such services is necessary between regular meetings of the Audit Committee and it is not practical to wait to seek pre-approval at the next regular meeting of the Audit Committee, pre-approval of such services may be referred to the Chair of the Audit Committee for approval; provided that the Chair may not pre-approve any individual engagement for such services exceeding $50,000 or multiple engagements for such services in the aggregate exceeding $100,000 in each period between regular meetings of the Audit Committee. Any engagement pre-approved by the Chair between regular meetings of the Audit Committee shall be presented for ratification by the entire Audit Committee at its next regularly scheduled meeting.
Item 4(e)(2):
None, or 0%, of the services relating to the Audit-Related Fees, Tax Fees and All Other Fees paid by the Fund and MFS and MFS Related Entities relating directly to the operations and financial reporting of the Registrant disclosed above were approved by the audit committee pursuant to paragraphs (c)(7)(i)(C) of Rule 2-01 of Regulation S-X (which permits audit committee approval after the start of the engagement with respect to services other than audit, review or attest services, if certain conditions are satisfied).
Item 4(f):
Not applicable.
Item 4(h):
The Registrant's Audit Committee has considered whether the provision by a Registrant's independent registered public accounting firm of non-audit services to MFS and MFS Related Entities that were not pre-approved by the Committee (because such services did not relate directly to the operations and financial reporting of the Registrant) was compatible with maintaining the independence of the independent registered public accounting firm as the Registrant's principal auditors.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to the Registrant.
ITEM 6. INVESTMENTS
A schedule of investments for each series covered by this Form N-CSR is included as part of the report to shareholders of such series under Item 1(a) of this Form N-CSR.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the Registrant.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the Registrant.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable to the Registrant.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There were no material changes to the procedures by which shareholders may send recommendations to the Board for nominees to the Registrant's Board since the Registrant last provided disclosure as to such procedures in response to the requirements of Item 407 (c)(2)(iv) of Regulation S-K or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a)Based upon their evaluation of the effectiveness of the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the "Act")) as conducted within 90 days of the filing date of this report on Form N-CSR, the registrant's principal financial officer and principal executive officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
(b)There were no changes in the registrant's internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period covered by the report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the Registrant.
ITEM 13. EXHIBITS.
a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Attached hereto as EX-99.COE.
(2)A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2): Attached hereto as EX-99.302CERT.
(3)Any written solicitation to purchase securities under Rule 23c-1 under the Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable.
(4)Change in the registrant's independent public accountant. Not applicable.
(b)If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for the purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. Attached hereto as EX-99.906CERT.
Notice
A copy of the Amended and Restated Declaration of Trust, as amended, of the Registrant is on file with the Secretary of State of The Commonwealth of Massachusetts and notice is hereby given that this instrument is executed on behalf of the Registrant by an officer of the Registrant as an officer and not individually and the obligations of or arising out of this instrument are not binding upon any of the Trustees or shareholders individually, but are binding only upon the assets and property of the respective constituent series of the Registrant.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) MFS SERIES TRUST VII
By (Signature and Title)* /S/ DAVID L. DILORENZO
David L. DiLorenzo, President
Date: September 15, 2022
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | /S/ DAVID L. DILORENZO |
| David L. DiLorenzo, President (Principal Executive Officer) |
Date: September 15, 2022 | |
By (Signature and Title)* | /S/ JAMES O. YOST |
| James O. Yost, Treasurer (Principal Financial Officer and |
| Accounting Officer) |
Date: September 15, 2022
* Print name and title of each signing officer under his or her signature.