Quarterly Report
November 30, 2023
MFS® New Discovery
Value Fund
Value Fund
NDV-Q3
Portfolio of Investments
11/30/23 (unaudited)
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 97.9% | ||||
Aerospace & Defense – 2.0% | ||||
CACI International, Inc., “A” (a) | 90,039 | $28,898,017 | ||
KBR, Inc. | 719,181 | 37,160,082 | ||
$66,058,099 | ||||
Apparel Manufacturers – 3.9% | ||||
Canada Goose Holdings, Inc. (a)(l) | 2,296,969 | $25,496,356 | ||
PVH Corp. | 369,912 | 36,169,996 | ||
Skechers USA, Inc., “A” (a) | 694,086 | 40,888,606 | ||
Under Amour, Inc., “C” (a) | 3,373,188 | 25,838,620 | ||
$128,393,578 | ||||
Automotive – 2.5% | ||||
LKQ Corp. | 1,003,932 | $44,705,092 | ||
Methode Electronics, Inc. | 664,699 | 15,773,307 | ||
Visteon Corp. (a) | 189,882 | 22,533,297 | ||
$83,011,696 | ||||
Business Services – 2.9% | ||||
Endava PLC, ADR (a) | 399,361 | $26,054,312 | ||
HireRight Holdings Corp. (a) | 1,440,744 | 18,945,784 | ||
Thoughtworks Holding, Inc. (a) | 3,702,751 | 14,440,729 | ||
TriNet Group, Inc. (a) | 158,182 | 18,338,039 | ||
WNS (Holdings) Ltd., ADR (a) | 307,757 | 18,305,386 | ||
$96,084,250 | ||||
Chemicals – 2.2% | ||||
Avient Corp. | 958,604 | $32,928,047 | ||
Element Solutions, Inc. | 1,836,652 | 38,496,226 | ||
$71,424,273 | ||||
Computer Software – 2.4% | ||||
ACI Worldwide, Inc. (a) | 1,532,954 | $40,991,190 | ||
Dun & Bradstreet Holdings, Inc. | 3,587,352 | 37,990,058 | ||
$78,981,248 | ||||
Computer Software - Systems – 1.3% | ||||
Softchoice Corp. (l) | 1,786,481 | $21,986,243 | ||
Verint Systems, Inc. (a) | 843,606 | 20,727,400 | ||
$42,713,643 | ||||
Construction – 1.6% | ||||
Apartment Income Corp., REIT | 680,883 | $21,189,079 | ||
Toll Brothers, Inc. | 386,885 | 33,229,553 | ||
$54,418,632 | ||||
Consumer Products – 2.9% | ||||
Helen of Troy Ltd. (a) | 272,339 | $28,603,765 | ||
Newell Brands, Inc. | 3,235,370 | 24,685,873 | ||
Prestige Consumer Healthcare, Inc. (a) | 760,281 | 43,602,116 | ||
$96,891,754 | ||||
Consumer Services – 1.1% | ||||
Grand Canyon Education, Inc. (a) | 264,062 | $36,102,557 |
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Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Containers – 2.1% | ||||
Ardagh Metal Packaging S.A. | 5,008,537 | $20,134,319 | ||
Graphic Packaging Holding Co. | 953,879 | 21,624,437 | ||
Silgan Holdings, Inc. | 656,319 | 27,381,628 | ||
$69,140,384 | ||||
Electrical Equipment – 2.8% | ||||
Berry Global, Inc. | 490,929 | $32,460,226 | ||
nVent Electric PLC | 512,663 | 27,299,305 | ||
TriMas Corp. | 1,288,269 | 33,018,334 | ||
$92,777,865 | ||||
Electronics – 1.7% | ||||
Cohu, Inc. (a) | 799,046 | $25,353,730 | ||
Plexus Corp. (a) | 318,313 | 32,432,911 | ||
$57,786,641 | ||||
Energy - Independent – 4.3% | ||||
CNX Resources Corp. (a) | 1,736,562 | $36,224,683 | ||
Matador Resources Co. | 449,512 | 26,017,755 | ||
Permian Resources Corp. | 2,868,473 | 37,691,735 | ||
Viper Energy, Inc. | 1,394,729 | 42,985,548 | ||
$142,919,721 | ||||
Food & Beverages – 1.9% | ||||
Nomad Foods Ltd. (a) | 3,193,965 | $51,582,534 | ||
WK Kellogg Co. | 1,120,644 | 12,551,213 | ||
$64,133,747 | ||||
Gaming & Lodging – 1.0% | ||||
International Game Technology PLC | 1,194,520 | $31,929,520 | ||
Insurance – 4.1% | ||||
Assurant, Inc. | 197,064 | $33,110,693 | ||
CNO Financial Group, Inc. | 1,481,281 | 39,253,947 | ||
Hanover Insurance Group, Inc. | 269,767 | 33,532,038 | ||
Selective Insurance Group, Inc. | 285,886 | 29,071,747 | ||
$134,968,425 | ||||
Leisure & Toys – 1.8% | ||||
Brunswick Corp. | 374,557 | $29,541,311 | ||
Funko, Inc., “A” (a) | 1,145,907 | 7,425,477 | ||
Hasbro, Inc. | 507,273 | 23,542,540 | ||
$60,509,328 | ||||
Machinery & Tools – 5.2% | ||||
ESAB Corp. | 400,885 | $30,928,278 | ||
Flowserve Corp. | 713,539 | 27,300,002 | ||
Hayward Holdings, Inc. (a) | 2,464,856 | 29,060,652 | ||
ITT, Inc. | 256,758 | 27,799,189 | ||
Regal Rexnord Corp. | 264,909 | 31,736,098 | ||
Timken Co. | 375,018 | 27,151,303 | ||
$173,975,522 | ||||
Medical & Health Technology & Services – 1.5% | ||||
Fortrea Holdings, Inc. (a) | 478,019 | $14,072,879 | ||
ICON PLC (a) | 130,773 | 34,908,545 | ||
$48,981,424 |
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Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Medical Equipment – 2.5% | ||||
Agiliti Health, Inc. (a) | 1,052,948 | $8,486,761 | ||
Envista Holdings Corp. (a) | 1,057,890 | 24,003,524 | ||
Maravai Lifesciences Holdings, Inc., “A” (a) | 1,204,908 | 6,145,031 | ||
Masimo Corp. (a) | 201,296 | 18,873,513 | ||
QuidelOrtho Corp. (a) | 372,890 | 25,628,729 | ||
$83,137,558 | ||||
Metals & Mining – 0.3% | ||||
Kaiser Aluminum Corp. | 192,262 | $11,243,482 | ||
Natural Gas - Distribution – 1.8% | ||||
New Jersey Resources Corp. | 678,708 | $28,641,477 | ||
ONE Gas, Inc. | 548,619 | 31,616,913 | ||
$60,258,390 | ||||
Natural Gas - Pipeline – 1.1% | ||||
Plains GP Holdings LP | 2,184,067 | $35,294,523 | ||
Oil Services – 3.3% | ||||
ChampionX Corp. | 1,004,549 | $29,453,377 | ||
Expro Group Holdings N.V. (a) | 1,333,317 | 20,733,079 | ||
Helmerich & Payne | 939,452 | 34,036,346 | ||
TechnipFMC PLC (a) | 1,245,427 | 25,805,247 | ||
$110,028,049 | ||||
Other Banks & Diversified Financials – 18.8% | ||||
Air Lease Corp. | 1,017,543 | $39,470,493 | ||
Banc of California, Inc. (l) | 1,636,164 | 18,914,056 | ||
Bank of Hawaii Corp. (l) | 406,978 | 23,633,212 | ||
Brookline Bancorp, Inc. | 2,655,522 | 25,307,125 | ||
Cathay General Bancorp, Inc. | 1,202,500 | 44,107,700 | ||
Columbia Banking System, Inc. | 1,886,424 | 42,312,490 | ||
East West Bancorp, Inc. | 699,503 | 44,012,729 | ||
Element Fleet Management Corp. | 1,999,339 | 32,208,667 | ||
First Hawaiian, Inc. | 1,372,932 | 26,978,114 | ||
First Interstate BancSystem, Inc. | 1,312,169 | 33,972,055 | ||
Glacier Bancorp, Inc. | 823,648 | 27,699,282 | ||
Herc Holdings, Inc. | 218,148 | 26,976,182 | ||
Pacific Premier Bancorp, Inc. | 1,721,291 | 38,763,473 | ||
Prosperity Bancshares, Inc. | 657,234 | 39,637,783 | ||
Sandy Spring Bancorp, Inc. | 683,499 | 15,050,648 | ||
SLM Corp. | 2,134,309 | 32,078,664 | ||
Texas Capital Bancshares, Inc. (a) | 464,446 | 25,488,796 | ||
UMB Financial Corp. | 247,499 | 17,735,778 | ||
United Community Bank, Inc. | 1,216,221 | 29,979,848 | ||
Wintrust Financial Corp. | 242,075 | 20,738,565 | ||
Zions Bancorporation NA | 521,066 | 18,565,582 | ||
$623,631,242 | ||||
Pharmaceuticals – 0.3% | ||||
Organon & Co. | 943,688 | $10,682,548 | ||
Real Estate – 8.7% | ||||
Brixmor Property Group, Inc., REIT | 1,253,771 | $26,981,152 | ||
Broadstone Net Lease, Inc., REIT | 2,750,698 | 44,011,168 | ||
Cushman & Wakefield PLC (a) | 2,225,452 | 18,270,961 | ||
Douglas Emmett, Inc., REIT | 653,523 | 7,986,051 | ||
Empire State Realty Trust, REIT, “A” | 3,875,677 | 34,726,066 | ||
LXP Industrial Trust, REIT | 3,311,058 | 29,071,089 |
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Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Real Estate – continued | ||||
National Storage Affiliates Trust, REIT | 1,013,174 | $33,627,245 | ||
Phillips Edison & Co., REIT | 1,375,504 | 48,472,761 | ||
STAG Industrial, Inc., REIT | 550,267 | 19,727,072 | ||
Two Harbors Investment Corp., REIT | 1,789,896 | 24,807,959 | ||
$287,681,524 | ||||
Restaurants – 0.6% | ||||
Jack in the Box, Inc. | 286,922 | $20,744,461 | ||
Specialty Chemicals – 3.5% | ||||
Ashland, Inc. | 348,126 | $27,822,230 | ||
Axalta Coating Systems Ltd. (a) | 1,149,437 | 36,172,782 | ||
Chemours Co. | 967,660 | 26,542,914 | ||
Quaker Chemical Corp. | 144,334 | 25,805,476 | ||
$116,343,402 | ||||
Specialty Stores – 1.2% | ||||
Monro Muffler Brake, Inc. | 584,358 | $16,899,633 | ||
Zumiez, Inc. (a)(h) | 1,194,875 | 22,559,240 | ||
$39,458,873 | ||||
Trucking – 2.9% | ||||
RXO, Inc. (a) | 1,485,077 | $31,127,214 | ||
Schneider National, Inc. | 1,319,023 | 30,377,099 | ||
XPO Logistics, Inc. (a) | 408,267 | 35,225,277 | ||
$96,729,590 | ||||
Utilities - Electric Power – 3.7% | ||||
Black Hills Corp. | 723,053 | $37,302,304 | ||
NorthWestern Corp. | 774,180 | 38,948,996 | ||
Portland General Electric Co. | 1,124,391 | 46,167,494 | ||
$122,418,794 | ||||
Total Common Stocks | $3,248,854,743 | |||
Investment Companies (h) – 1.9% | ||||
Money Market Funds – 1.9% | ||||
MFS Institutional Money Market Portfolio, 5.46% (v) | 64,122,208 | $64,128,621 | ||
Collateral for Securities Loaned – 0.7% | ||||
State Street Navigator Securities Lending Government Money Market Portfolio, 5.37% (j) | 21,578,323 | $21,578,323 | ||
Other Assets, Less Liabilities – (0.5)% | (16,721,685) | |||
Net Assets – 100.0% | $3,317,840,002 |
(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 $86,687,861 and $3,247,873,826, respectively. | |||
(j) | The rate quoted is the annualized seven-day yield of the fund at period end. | |||
(l) | A portion of this security is on loan. See Note 2 for additional information. | |||
(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 |
See attached supplemental information. For more information see notes to financial statements as disclosed in the most recent semiannual or annual report.
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Supplemental Information
11/30/23 (unaudited)
The fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services - Investment Companies.
(1) Investment Valuations
Subject to its oversight, the fund's Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of the fund’s investments to MFS as the fund's adviser, pursuant to the fund’s valuation policy and procedures which have been adopted by the adviser and approved by the Board. In accordance with Rule 2a-5 under the Investment Company Act of 1940, the Board of Trustees designated the adviser as the “valuation designee” of the fund. If the adviser, as valuation designee, determines that reliable market quotations are not readily available for an investment, the investment is valued at fair value as determined in good faith by the adviser in accordance with the adviser’s fair valuation policy and procedures.
Under the fund's valuation policy and procedures, equity securities, including restricted equity securities, are generally valued at the last sale or official closing price on their primary market or exchange as provided by a third-party pricing service. Equity securities, for which there were no sales reported that day, are generally valued at the last quoted daily bid quotation on their primary market or exchange as provided by a third-party pricing service. Short-term instruments with a maturity at issuance of 60 days or less may be valued at amortized cost, which approximates market value. Open-end investment companies are generally valued at net asset value per share. The values of foreign securities and other assets and liabilities expressed in foreign currencies are converted to U.S. dollars using the mean of bid and asked prices for rates provided by a third-party pricing service.
Under the fund’s valuation policy and procedures, market quotations are not considered to be readily available for debt instruments, floating rate loans, and many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services or otherwise determined by the adviser in accordance with the adviser’s fair valuation policy and procedures. Securities and other assets generally valued on the basis of information from a third-party pricing service may also be valued at a broker/dealer bid quotation. In determining values, third-party pricing services can utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics, spreads and other market data. An investment may also be valued at fair value if the adviser determines that the investment’s value has been materially affected by events occurring after the close of the exchange or market on which the investment is principally traded (such as foreign exchange or market) and prior to the determination of the fund’s net asset value, or after the halt of trading of a specific security where trading does not resume prior to the close of the exchange or market on which the security is principally traded. Events that occur after foreign markets close (such as developments in foreign markets and significant movements in the U.S. markets) and prior to the determination of the fund’s net asset value may be deemed to have a material effect on the value of securities traded in foreign markets. Accordingly, the fund’s foreign equity securities may often be valued at fair value. The adviser generally relies on third-party pricing services or other information (such as the correlation with price movements of similar securities in the same or other markets; the type, cost and investment characteristics of the security; the business and financial condition of the issuer; and trading and other market data) to assist in determining whether to fair value and at what value to fair value an investment. The value of an investment for purposes of calculating the fund’s net asset value can differ depending on the source and method used to determine value. When fair valuation is used, the value of an investment used to determine the fund’s net asset value may differ from quoted or published prices for the same investment. There can be no assurance that the fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the fund determines its net asset value per share.
Various inputs are used in determining the value of the fund's assets or liabilities. These inputs are categorized into three broad levels. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fund's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes significant unobservable inputs, which may include the adviser's own assumptions in determining the fair value of investments. The following is a summary of the levels used as of November 30, 2023 in valuing the fund's assets and liabilities:
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
Equity Securities | $3,248,854,743 | $— | $— | $3,248,854,743 |
Mutual Funds | 85,706,944 | — | — | 85,706,944 |
Total | $3,334,561,687 | $��� | $— | $3,334,561,687 |
For further information regarding security characteristics, see the Portfolio of Investments.
(2) Securities Lending Collateral
At November 30, 2023, the value of securities loaned was $25,056,384. These loans were collateralized by cash of $21,578,323 and U.S. Treasury Obligations (held by the lending agent) of $4,087,210.
5
Supplemental Information (unaudited) – continued
(3) Investments in Affiliated Issuers
An affiliated issuer may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. For the purposes of this report, the following were affiliated issuers:
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $38,401,851 | $617,472,645 | $591,747,069 | $1,018 | $176 | $64,128,621 |
Zumiez, Inc. | 26,905,447 | 1,125,969 | 398,073 | (567,055) | (4,507,048) | 22,559,240 |
$65,307,298 | $618,598,614 | $592,145,142 | $(566,037) | $(4,506,872) | $86,687,861 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $2,559,048 | $— |
Zumiez, Inc. | — | — |
$2,559,048 | $— |
6