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 811-02032
MFS SERIES TRUST XVI
(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
111Huntington 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: June 30
Date of reporting period: December 31, 2023
ITEM 1. REPORTS TO STOCKHOLDERS.
Item 1(a):
![](https://capedge.com/proxy/N-CSRS/0001683863-24-000963/img208aec9d1.gif)
![](https://capedge.com/proxy/N-CSRS/0001683863-24-000963/img55f4a1a72.gif)
1 | |
3 | |
5 | |
13 | |
15 | |
17 | |
18 | |
27 | |
43 | |
47 | |
47 | |
47 | |
47 | |
47 |
back cover |
Active Security Selection (a) | Derivative Overlay Positions (b) | Net Market Exposure (c) | ||
Equities | 48.9% | —% | 48.9% | |
Gold Related Investments (f) | 1.7% | —% | 1.7% | |
Hedges | ||||
Russell 2000 Index Option Puts | —% | (0.5)% | (0.9)% | |
Euro Stoxx 50 Index Option Puts | —% | (0.5)% | (1.2)% | |
S&P 500 Index Option Puts | —% | (1.6)% | (1.5)% | |
Net Equity Exposure | 50.6% | (2.6)% | 48.0% | |
Debt Instruments, excluding Short-Term Government Securities | 21.2% | —% | 21.2% | |
Cash, Cash Equivalents, and Short-Term Government Securities (d) | —% | —% | 28.2% | |
Other (e) | —% | —% | 2.6% | |
Total Net Exposure Summary | —% | —% | 100.0% |
U.S. Treasury Notes, 4.25%, 9/30/2024 | 3.7% |
U.S. Treasury Notes, 3%, 6/30/2024 | 3.7% |
LEG Immobilien SE | 3.4% |
U.S. Treasury Notes, 2.25%, 3/31/2024 | 2.9% |
U.S. Treasury Notes, TIPS, 0.125%, 4/15/2027 | 2.8% |
Alphabet, Inc., “A” | 2.5% |
U.S. Treasury Notes, 3.875%, 3/31/2025 | 2.4% |
U.S. Treasury Notes, 4.25%, 12/31/2024 | 2.4% |
Samsung Electronics Co. Ltd. | 2.3% |
Amadeus IT Group S.A. | 2.1% |
(a) | Represents the actively managed portion of the portfolio and for purposes of this presentation, components include the value of securities, less any securities sold short. The bond component will include any accrued interest amounts. This also reflects the equivalent exposure of certain derivative positions. These amounts may be negative from time to time. |
(b) | Represents the tactical overlay portion of the portfolio which is how the fund manages its exposure to markets and currencies through the use of derivative positions. Percentages reflect the equivalent exposure of those derivative positions. |
(c) | For purposes of this presentation, the components include the value of securities, less any securities sold short, and reflect the impact of the equivalent exposure of all derivative positions. These amounts may be negative from time to time. The bond component will include any accrued interest amounts. |
(d) | Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities (including U.S. Treasury securities with a maturity of less than 3 years for the purpose of this presentation), and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities. |
(e) | Other includes currency derivatives and/or the offsetting of the leverage produced by the fund’s derivative positions and the unrealized gain or loss in connection with forward foreign currency exchange contracts. |
(f) | The fund invests a portion of its assets in Exchange-Traded Funds (ETFs) or Options on ETFs to gain gold related exposure. Percentages include the direct exposure from investing in ETFs and not the indirect exposure to the underlying holdings. |
July 1, 2023 through December 31, 2023
Share Class | Annualized Expense Ratio | Beginning Account Value 7/01/23 | Ending Account Value 12/31/23 | Expenses Paid During Period (p) 7/01/23-12/31/23 | |
A | Actual | 1.24% | $1,000.00 | $1,064.16 | $6.43 |
Hypothetical (h) | 1.24% | $1,000.00 | $1,018.90 | $6.29 | |
B | Actual | 1.99% | $1,000.00 | $1,059.95 | $10.30 |
Hypothetical (h) | 1.99% | $1,000.00 | $1,015.13 | $10.08 | |
C | Actual | 1.99% | $1,000.00 | $1,060.90 | $10.31 |
Hypothetical (h) | 1.99% | $1,000.00 | $1,015.13 | $10.08 | |
I | Actual | 0.99% | $1,000.00 | $1,065.88 | $5.14 |
Hypothetical (h) | 0.99% | $1,000.00 | $1,020.16 | $5.03 | |
R1 | Actual | 1.99% | $1,000.00 | $1,060.32 | $10.31 |
Hypothetical (h) | 1.99% | $1,000.00 | $1,015.13 | $10.08 | |
R2 | Actual | 1.49% | $1,000.00 | $1,062.77 | $7.73 |
Hypothetical (h) | 1.49% | $1,000.00 | $1,017.65 | $7.56 | |
R3 | Actual | 1.24% | $1,000.00 | $1,064.33 | $6.43 |
Hypothetical (h) | 1.24% | $1,000.00 | $1,018.90 | $6.29 | |
R4 | Actual | 0.99% | $1,000.00 | $1,064.92 | $5.14 |
Hypothetical (h) | 0.99% | $1,000.00 | $1,020.16 | $5.03 | |
R6 | Actual | 0.93% | $1,000.00 | $1,065.58 | $4.83 |
Hypothetical (h) | 0.93% | $1,000.00 | $1,020.46 | $4.72 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 49.1% | ||||
Aerospace & Defense – 2.7% | ||||
Safran S.A. | 3,194 | $562,258 | ||
Thales S.A. | 2,997 | 443,179 | ||
$1,005,437 | ||||
Alcoholic Beverages – 2.1% | ||||
Heineken Holding N.V. | 9,346 | $790,322 | ||
Automotive – 1.7% | ||||
Knorr-Bremse AG | 9,599 | $623,093 | ||
Brokerage & Asset Managers – 1.5% | ||||
B3 S.A. - Brasil Bolsa Balcao | 95,900 | $287,250 | ||
Euronext N.V. | 3,042 | 264,124 | ||
$551,374 | ||||
Computer Software – 4.5% | ||||
Microsoft Corp. | 500 | $188,020 | ||
Oracle Corp. | 3,649 | 384,714 | ||
Oracle Corp. Japan | 5,600 | 431,716 | ||
Sage Group PLC | 46,760 | 698,841 | ||
$1,703,291 | ||||
Computer Software - Systems – 4.4% | ||||
Amadeus IT Group S.A. | 11,242 | $805,200 | ||
Samsung Electronics Co. Ltd. | 13,963 | 849,229 | ||
$1,654,429 | ||||
Construction – 0.5% | ||||
Barratt Developments PLC | 29,084 | $208,567 | ||
Consumer Services – 2.1% | ||||
Booking Holdings, Inc. (a) | 220 | $780,388 | ||
Electrical Equipment – 1.7% | ||||
Legrand S.A. | 5,991 | $622,355 | ||
Electronics – 1.4% | ||||
Kyocera Corp. | 36,000 | $525,447 | ||
Forest & Paper Products – 0.7% | ||||
Rayonier, Inc., REIT | 8,354 | $279,107 | ||
Insurance – 0.8% | ||||
Swiss Re Ltd. | 2,600 | $292,320 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Internet – 4.1% | ||||
Alphabet, Inc., “A” (a) | 6,734 | $940,673 | ||
Scout24 AG | 8,540 | 604,883 | ||
$1,545,556 | ||||
Leisure & Toys – 2.1% | ||||
Nintendo Co. Ltd. | 14,800 | $772,434 | ||
Medical Equipment – 4.1% | ||||
Agilent Technologies, Inc. | 2,203 | $306,283 | ||
Bio-Rad Laboratories, Inc., “A” (a) | 1,777 | 573,775 | ||
Sonova Holding AG | 2,004 | 653,823 | ||
$1,533,881 | ||||
Other Banks & Diversified Financials – 1.1% | ||||
S&P Global, Inc. | 935 | $411,886 | ||
Printing & Publishing – 1.5% | ||||
Wolters Kluwer N.V. | 3,901 | $554,248 | ||
Real Estate – 3.4% | ||||
LEG Immobilien SE (a) | 14,775 | $1,293,778 | ||
Specialty Chemicals – 1.2% | ||||
Nitto Denko Corp. | 6,000 | $448,936 | ||
Specialty Stores – 1.0% | ||||
Zalando SE (a) | 16,584 | $392,705 | ||
Telecommunications - Wireless – 2.9% | ||||
Infrastrutture Wireless Italiane S.p.A. | 37,967 | $479,912 | ||
KDDI Corp. | 18,800 | 598,133 | ||
$1,078,045 | ||||
Telephone Services – 0.8% | ||||
Altice USA, Inc., “A” (a) | 16,124 | $52,403 | ||
Hellenic Telecommunications Organization S.A. | 16,851 | 239,974 | ||
$292,377 | ||||
Trucking – 1.1% | ||||
Yamato Holdings Co. Ltd. | 23,300 | $430,554 | ||
Utilities - Electric Power – 1.7% | ||||
Iberdrola S.A. | 49,347 | $646,637 | ||
Total Common Stocks (Identified Cost, $14,803,371) | $18,437,167 |
Issuer | Shares/Par | Value ($) | ||
Bonds – 39.1% | ||||
Asset-Backed & Securitized – 0.2% | ||||
LAD Auto Receivables Trust, 2023-2A, “A2”, 5.93%, 6/15/2027 (n) | $ | 46,718 | $46,751 | |
Toyota Lease Owner Trust, 2023-A, “A2”, 5.3%, 8/20/2025 (n) | 22,582 | 22,547 | ||
$69,298 | ||||
Automotive – 0.3% | ||||
RAC Bond Co. PLC, 5.25%, 11/04/2046 | GBP | 100,000 | $111,425 | |
Broadcasting – 0.3% | ||||
WMG Acquisition Corp., 3.875%, 7/15/2030 (n) | $ | 149,000 | $134,807 | |
Building – 1.4% | ||||
Foundation Building Materials LLC, 6%, 3/01/2029 (n) | $ | 75,000 | $67,435 | |
Interface, Inc., 5.5%, 12/01/2028 (n) | 130,000 | 120,157 | ||
New Enterprise Stone & Lime Co., Inc., 5.25%, 7/15/2028 (n) | 125,000 | 119,239 | ||
Standard Industries, Inc., 3.375%, 1/15/2031 (n) | 272,000 | 233,993 | ||
$540,824 | ||||
Conglomerates – 0.3% | ||||
BWX Technologies, Inc., 4.125%, 6/30/2028 (n) | $ | 74,000 | $68,619 | |
BWX Technologies, Inc., 4.125%, 4/15/2029 (n) | 39,000 | 35,588 | ||
$104,207 | ||||
Consumer Products – 0.1% | ||||
Coty, Inc., 6.5%, 4/15/2026 (n) | $ | 25,000 | $24,960 | |
Consumer Services – 1.6% | ||||
Arches Buyer, Inc., 6.125%, 12/01/2028 (n) | $ | 249,000 | $215,385 | |
Match Group Holdings II LLC, 4.625%, 6/01/2028 (n) | 244,000 | 233,630 | ||
Realogy Group LLC/Realogy Co-Issuer Corp., 5.75%, 1/15/2029 (n) | 198,000 | 153,878 | ||
$602,893 | ||||
Containers – 0.4% | ||||
Can-Pack S.A./Eastern PA Land Investment Holding LLC, 3.875%, 11/15/2029 (n) | $ | 200,000 | $171,424 | |
Electronics – 0.3% | ||||
Sensata Technologies B.V., 5%, 10/01/2025 (n) | $ | 63,000 | $63,076 | |
Sensata Technologies, Inc., 3.75%, 2/15/2031 (n) | 50,000 | 44,037 | ||
$107,113 | ||||
Financial Institutions – 0.7% | ||||
Global Aircraft Leasing Co. Ltd., 6.5% (6.5% Cash or 7.25% PIK), 9/15/2024 (n)(p) | $ | 165,294 | $155,376 | |
Global Aircraft Leasing Co. Ltd., 6.5% (6.5% Cash or 7.25% PIK), 9/15/2024 (n)(p) | 108,806 | 102,278 | ||
$257,654 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Insurance - Property & Casualty – 0.9% | ||||
Acrisure LLC/Acrisure Finance, Inc., 4.25%, 2/15/2029 (n) | $ | 89,000 | $80,362 | |
Hub International Ltd., 7%, 5/01/2026 (n) | 253,000 | 253,978 | ||
$334,340 | ||||
Medical & Health Technology & Services – 0.4% | ||||
Charles River Laboratories International, Inc., 4%, 3/15/2031 (n) | $ | 172,000 | $155,382 | |
Medical Equipment – 0.3% | ||||
Teleflex, Inc., 4.625%, 11/15/2027 | $ | 105,000 | $102,066 | |
Midstream – 1.2% | ||||
Peru LNG, 5.375%, 3/22/2030 | $ | 200,000 | $165,462 | |
Venture Global LNG, Inc., 8.125%, 6/01/2028 (n) | 72,000 | 72,713 | ||
Venture Global LNG, Inc., 9.5%, 2/01/2029 (n) | 85,000 | 89,944 | ||
Venture Global LNG, Inc., 8.375%, 6/01/2031 (n) | 133,000 | 132,931 | ||
$461,050 | ||||
Mortgage-Backed – 4.0% | ||||
Fannie Mae, UMBS, 6.5%, 9/01/2053 | $ | 50,000 | $51,239 | |
Fannie Mae, UMBS, 5.5%, 11/01/2053 | 199,812 | 200,620 | ||
Freddie Mac, UMBS, 4.5%, 6/01/2038 - 10/01/2052 | 291,081 | 284,554 | ||
Freddie Mac, UMBS, 6%, 7/01/2053 | 49,950 | 50,717 | ||
Ginnie Mae, 5.5%, 2/20/2053 | 168,948 | 170,267 | ||
Ginnie Mae, 5%, 4/20/2053 - 10/20/2053 | 395,163 | 392,409 | ||
Ginnie Mae, 4.5%, 7/20/2053 | 98,981 | 96,556 | ||
Ginnie Mae, TBA, 6%, 1/15/2054 | 25,000 | 25,419 | ||
Ginnie Mae, TBA, 6.5%, 1/15/2054 | 125,000 | 127,954 | ||
UMBS, TBA, 5%, 1/25/2039 | 100,000 | 100,594 | ||
$1,500,329 | ||||
Precious Metals & Minerals – 0.4% | ||||
IAMGOLD Corp., 5.75%, 10/15/2028 (n) | $ | 166,000 | $142,753 | |
Specialty Chemicals – 0.5% | ||||
CTEC II GmbH, 5.25%, 2/15/2030 | EUR | 200,000 | $197,055 | |
Telecommunications - Wireless – 0.9% | ||||
SBA Communications Corp., 3.875%, 2/15/2027 | $ | 154,000 | $147,889 | |
SBA Communications Corp., 3.125%, 2/01/2029 | 212,000 | 190,481 | ||
$338,370 | ||||
Transportation - Services – 0.7% | ||||
Q-Park Holding I B.V., 2%, 3/01/2027 | EUR | 265,000 | $269,585 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
U.S. Treasury Obligations – 22.4% | ||||
U.S. Treasury Bonds, TIPS, 2.375%, 1/15/2025 | $ | 742,639 | $736,806 | |
U.S. Treasury Notes, 2.25%, 3/31/2024 | 1,109,000 | 1,100,726 | ||
U.S. Treasury Notes, 3%, 6/30/2024 | 1,391,000 | 1,376,438 | ||
U.S. Treasury Notes, 4.25%, 9/30/2024 | 1,392,000 | 1,384,877 | ||
U.S. Treasury Notes, 4.25%, 12/31/2024 | 910,000 | 905,143 | ||
U.S. Treasury Notes, 3.875%, 3/31/2025 | 924,000 | 915,879 | ||
U.S. Treasury Notes, 1.625%, 10/15/2027 | 565,303 | 560,976 | ||
U.S. Treasury Notes, TIPS, 0.5%, 4/15/2024 | 374,497 | 369,772 | ||
U.S. Treasury Notes, TIPS, 0.125%, 4/15/2027 | 1,124,843 | 1,056,905 | ||
$8,407,522 | ||||
Utilities - Electric Power – 1.8% | ||||
Clearway Energy Operating LLC, 4.75%, 3/15/2028 (n) | $ | 150,000 | $144,512 | |
Clearway Energy Operating LLC, 3.75%, 2/15/2031 (n) | 118,000 | 103,936 | ||
MidAmerican Energy Co., 3.5%, 10/15/2024 | 94,000 | 92,608 | ||
NextEra Energy Capital Holdings, Inc., 4.255%, 9/01/2024 | 108,000 | 106,973 | ||
Pacific Gas & Electric Co., 6.1%, 1/15/2029 | 46,000 | 47,601 | ||
Pacific Gas & Electric Co., 6.4%, 6/15/2033 | 56,000 | 58,924 | ||
Southern Co., 4.475%, 8/01/2024 | 107,000 | 106,112 | ||
$660,666 | ||||
Total Bonds (Identified Cost, $14,783,572) | $14,693,723 | |||
Exchange-Traded Funds – 1.7% | ||||
Gold ETFs – 1.7% | ||||
VanEck Gold Miners UCITS ETF (a) | 6,184 | $214,554 | ||
VanEck Junior Gold Miners UCITS ETF (a) | 12,416 | 417,674 | ||
Total Exchange-Traded Funds (Identified Cost, $756,661) | $632,228 | |||
Investment Companies (h) – 10.3% | ||||
Money Market Funds – 10.3% | ||||
MFS Institutional Money Market Portfolio, 5.42% (v) (Identified Cost, $3,862,402) | 3,862,298 | $3,863,071 |
Underlying/Expiration Date/Exercise Price | Put/Call | Counterparty | Notional Amount | Par Amount/ Number of Contracts | |
Purchased Options – 0.5% | |||||
Computer Software - Systems – 0.0% | |||||
Apple, Inc. – March 2024 @ $145 | Put | Goldman Sachs International | $ 654,602 | 34 | $918 |
Underlying/Expiration Date/Exercise Price | Put/Call | Counterparty | Notional Amount | Par Amount/ Number of Contracts | Value ($) |
Purchased Options – continued | |||||
Major Banks – 0.0% | |||||
Capital One Financial Corp. – June 2024 @ $95 | Put | Goldman Sachs International | $ 419,584 | 32 | $4,640 |
Market Index Securities – 0.5% | |||||
Euro Stoxx 50 Index – September 2025 @ EUR 3,500 | Put | Goldman Sachs International | $ 1,397,669 | 28 | $36,104 |
Russell 2000 Index – June 2024 @ $1,400 | Put | Goldman Sachs International | 1,013,537 | 5 | 3,800 |
Russell 2000 Index – June 2024 @ $1,500 | Put | Goldman Sachs International | 810,830 | 4 | 3,904 |
Russell 2000 Index – December 2025 @ $1,400 | Put | Goldman Sachs International | 1,013,537 | 5 | 23,350 |
S&P 500 Index – June 2024 @ $3,150 | Put | Goldman Sachs International | 1,430,949 | 3 | 2,502 |
S&P 500 Index – June 2024 @ $3,250 | Put | Goldman Sachs International | 953,966 | 2 | 1,900 |
S&P 500 Index – June 2024 @ $3,350 | Put | Goldman Sachs International | 953,966 | 2 | 2,120 |
S&P 500 Index – August 2024 @ $4,200 | Put | Goldman Sachs International | 1,907,932 | 4 | 24,048 |
S&P 500 Index – December 2024 @ $3,250 | Put | Goldman Sachs International | 1,430,949 | 3 | 8,790 |
S&P 500 Index – June 2025 @ $3,700 | Put | Goldman Sachs International | 1,430,949 | 3 | 25,590 |
S&P 500 Index – December 2025 @ $3,300 | Put | Goldman Sachs International | 1,430,949 | 3 | 23,310 |
$155,418 | |||||
Network & Telecom – 0.0% | |||||
Digital Realty Trust, Inc., REIT – June 2024 @ $90 | Put | Goldman Sachs International | $ 578,694 | 43 | $3,870 |
Total Purchased Options (Premiums Paid, $526,735) | $164,846 |
Written Options (see table below) – (0.0)% | ||||
(Premiums Received, $45,426) | $(12,244) | |||
Other Assets, Less Liabilities – (0.7)% | (234,321) | |||
Net Assets – 100.0% | $37,544,470 |
(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 $3,863,071 and $33,927,964, respectively. | |||
(n) | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate value of these securities was $3,189,691, representing 8.5% of net assets. | |||
(p) | Payment-in-kind (PIK) security for which interest income may be received in additional securities and/or cash. | |||
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
The following abbreviations are used in this report and are defined: | |
ETF | Exchange-Traded Fund |
REIT | Real Estate Investment Trust |
TBA | To Be Announced |
TIPS | Treasury Inflation Protected Security |
UMBS | Uniform Mortgage-Backed Security |
Abbreviations indicate amounts shown in currencies other than the U.S. dollar. All amounts are stated in U.S. dollars unless otherwise indicated. A list of abbreviations is shown below: | |
EUR | Euro |
GBP | British Pound |
Written Options | |||||||
Underlying | Put/ Call | Counterparty | Par Amount/ Number of Contracts | Notional Amount | Exercise Price | Expiration Date | Value |
Liability Derivatives | |||||||
Computer Software - Systems | |||||||
Apple, Inc. | Put | Goldman Sachs International | 34 | $654,602 | $110.00 | March – 2024 | $(204) |
Major Banks | |||||||
Capital One Financial Corp. | Put | Goldman Sachs International | 32 | 419,584 | 65.00 | June – 2024 | $(1,120) |
Market Index Securities | |||||||
S&P 500 Index | Put | Goldman Sachs International | 4 | 1,907,932 | 3,700.00 | August – 2024 | $(10,920) |
$(12,244) |
Forward Foreign Currency Exchange Contracts | ||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||
Liability Derivatives | ||||||
USD | 266,315 | EUR | 250,722 | HSBC Bank | 1/19/2024 | $(10,655) |
USD | 3,621,213 | EUR | 3,430,000 | Merrill Lynch International | 1/19/2024 | (167,871) |
USD | 103,148 | GBP | 84,604 | HSBC Bank | 1/19/2024 | (4,702) |
$(183,228) |
Assets | |
Investments in unaffiliated issuers, at value (identified cost, $30,870,339) | $33,927,964 |
Investments in affiliated issuers, at value (identified cost, $3,862,402) | 3,863,071 |
Receivables for | |
Fund shares sold | 3,001 |
Interest and dividends | 195,146 |
Receivable from investment adviser | 18,437 |
Other assets | 42,095 |
Total assets | $38,049,714 |
Liabilities | |
Payable to custodian | $26 |
Payables for | |
Forward foreign currency exchange contracts | 183,228 |
TBA purchase commitments | 252,622 |
Written options (premiums received, $45,426) | 12,244 |
Payable to affiliates | |
Administrative services fee | 191 |
Shareholder servicing costs | 7,678 |
Distribution and service fees | 790 |
Payable for independent Trustees' compensation | 9 |
Accrued expenses and other liabilities | 48,456 |
Total liabilities | $505,244 |
Net assets | $37,544,470 |
Net assets consist of | |
Paid-in capital | $36,912,352 |
Total distributable earnings (loss) | 632,118 |
Net assets | $37,544,470 |
Shares of beneficial interest outstanding | 3,280,779 |
Net assets | Shares outstanding | Net asset value per share (a) | |
Class A | $8,982,796 | 784,285 | $11.45 |
Class B | 75,821 | 6,656 | 11.39 |
Class C | 4,585,947 | 404,157 | 11.35 |
Class I | 11,811,873 | 1,031,046 | 11.46 |
Class R1 | 286,647 | 25,177 | 11.39 |
Class R2 | 61,433 | 5,362 | 11.46 |
Class R3 | 62,355 | 5,441 | 11.46 |
Class R4 | 63,289 | 5,521 | 11.46 |
Class R6 | 11,614,309 | 1,013,134 | 11.46 |
(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 $12.15 [100 / 94.25 x $11.45]. 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 | |
Interest | $339,782 |
Dividends | 121,033 |
Dividends from affiliated issuers | 80,691 |
Other | 1,118 |
Foreign taxes withheld | (8,192) |
Total investment income | $534,432 |
Expenses | |
Management fee | $147,403 |
Distribution and service fees | 37,583 |
Shareholder servicing costs | 13,245 |
Administrative services fee | 8,797 |
Independent Trustees' compensation | 1,522 |
Custodian fee | 8,794 |
Shareholder communications | 5,149 |
Audit and tax fees | 34,590 |
Legal fees | 90 |
Registration fees | 65,609 |
Miscellaneous | 16,236 |
Total expenses | $339,018 |
Fees paid indirectly | (27) |
Reduction of expenses by investment adviser and distributor | (122,434) |
Net expenses | $216,557 |
Net investment income (loss) | $317,875 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $(702,028) |
Affiliated issuers | (309) |
Written options | 32,346 |
Futures contracts | (33,609) |
Forward foreign currency exchange contracts | 14,873 |
Foreign currency | (585) |
Net realized gain (loss) | $(689,312) |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $2,849,031 |
Affiliated issuers | 219 |
Written options | (4,078) |
Futures contracts | 31,833 |
Forward foreign currency exchange contracts | (183,770) |
Translation of assets and liabilities in foreign currencies | 2,205 |
Net unrealized gain (loss) | $2,695,440 |
Net realized and unrealized gain (loss) | $2,006,128 |
Change in net assets from operations | $2,324,003 |
Six months ended | Year ended | |
12/31/23 (unaudited) | 6/30/23 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $317,875 | $442,108 |
Net realized gain (loss) | (689,312) | (796,599) |
Net unrealized gain (loss) | 2,695,440 | 2,748,427 |
Change in net assets from operations | $2,324,003 | $2,393,936 |
Total distributions to shareholders | $(632,497) | $(425,103) |
Change in net assets from fund share transactions | $(979,997) | $(7,226,513) |
Total change in net assets | $711,509 | $(5,257,680) |
Net assets | ||
At beginning of period | 36,832,961 | 42,090,641 |
At end of period | $37,544,470 | $36,832,961 |
Class A | Six months ended | Year ended | ||||
12/31/23 (unaudited) | 6/30/23 | 6/30/22 | 6/30/21 | 6/30/20 | 6/30/19 | |
Net asset value, beginning of period | $10.94 | $10.33 | $12.06 | $11.32 | $10.60 | $10.07 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.09 | $0.11 | $0.03 | $0.07 | $0.07 | $0.12 |
Net realized and unrealized gain (loss) | 0.61 | 0.61 | (1.51) | 0.83 | 0.77 | 0.54 |
Total from investment operations | $0.70 | $0.72 | $(1.48) | $0.90 | $0.84 | $0.66 |
Less distributions declared to shareholders | ||||||
From net investment income | $(0.19) | $(0.11) | $(0.07) | $(0.06) | $(0.11) | $(0.13) |
From net realized gain | — | — | (0.18) | (0.10) | (0.01) | — |
Total distributions declared to shareholders | $(0.19) | $(0.11) | $(0.25) | $(0.16) | $(0.12) | $(0.13) |
Net asset value, end of period (x) | $11.45 | $10.94 | $10.33 | $12.06 | $11.32 | $10.60 |
Total return (%) (r)(s)(t)(x) | 6.42(n) | 7.04 | (12.58) | 7.99 | 8.01 | 6.63 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 1.91(a) | 1.88 | 1.69 | 1.74 | 2.35 | 2.74 |
Expenses after expense reductions (f) | 1.24(a) | 1.24 | 1.24 | 1.24 | 1.24 | 1.21 |
Net investment income (loss) | 1.66(a) | 1.08 | 0.23 | 0.56 | 0.61 | 1.16 |
Portfolio turnover | 26(n) | 60 | 52 | 32 | 46 | 51 |
Net assets at end of period (000 omitted) | $8,983 | $8,516 | $11,779 | $16,738 | $7,992 | $3,485 |
Class B | Six months ended | Year ended | ||||
12/31/23 (unaudited) | 6/30/23 | 6/30/22 | 6/30/21 | 6/30/20 | 6/30/19 | |
Net asset value, beginning of period | $10.85 | $10.24 | $11.99 | $11.28 | $10.56 | $10.03 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.05 | $0.04 | $(0.06) | $(0.04) | $(0.02) | $0.05 |
Net realized and unrealized gain (loss) | 0.60 | 0.61 | (1.51) | 0.85 | 0.78 | 0.53 |
Total from investment operations | $0.65 | $0.65 | $(1.57) | $0.81 | $0.76 | $0.58 |
Less distributions declared to shareholders | ||||||
From net investment income | $(0.11) | $(0.04) | $— | $— | $(0.03) | $(0.05) |
From net realized gain | — | — | (0.18) | (0.10) | (0.01) | — |
Total distributions declared to shareholders | $(0.11) | $(0.04) | $(0.18) | $(0.10) | $(0.04) | $(0.05) |
Net asset value, end of period (x) | $11.39 | $10.85 | $10.24 | $11.99 | $11.28 | $10.56 |
Total return (%) (r)(s)(t)(x) | 5.99(n) | 6.36 | (13.31) | 7.19 | 7.25 | 5.84 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 2.66(a) | 2.64 | 2.44 | 2.50 | 3.11 | 3.50 |
Expenses after expense reductions (f) | 1.99(a) | 1.99 | 1.99 | 1.99 | 1.99 | 1.96 |
Net investment income (loss) | 0.90(a) | 0.35 | (0.49) | (0.33) | (0.16) | 0.46 |
Portfolio turnover | 26(n) | 60 | 52 | 32 | 46 | 51 |
Net assets at end of period (000 omitted) | $76 | $74 | $87 | $100 | $94 | $65 |
Class C | Six months ended | Year ended | ||||
12/31/23 (unaudited) | 6/30/23 | 6/30/22 | 6/30/21 | 6/30/20 | 6/30/19 | |
Net asset value, beginning of period | $10.78 | $10.17 | $11.90 | $11.20 | $10.52 | $10.03 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.05 | $0.03 | $(0.06) | $(0.02) | $(0.01) | $0.05 |
Net realized and unrealized gain (loss) | 0.60 | 0.60 | (1.49) | 0.82 | 0.77 | 0.53 |
Total from investment operations | $0.65 | $0.63 | $(1.55) | $0.80 | $0.76 | $0.58 |
Less distributions declared to shareholders | ||||||
From net investment income | $(0.08) | $(0.02) | $— | $(0.00)(w) | $(0.07) | $(0.09) |
From net realized gain | — | — | (0.18) | (0.10) | (0.01) | — |
Total distributions declared to shareholders | $(0.08) | $(0.02) | $(0.18) | $(0.10) | $(0.08) | $(0.09) |
Net asset value, end of period (x) | $11.35 | $10.78 | $10.17 | $11.90 | $11.20 | $10.52 |
Total return (%) (r)(s)(t)(x) | 6.09(n) | 6.25 | (13.25) | 7.17 | 7.29 | 5.83 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 2.66(a) | 2.64 | 2.44 | 2.49 | 3.08 | 3.49 |
Expenses after expense reductions (f) | 1.99(a) | 1.99 | 1.99 | 1.99 | 1.99 | 1.96 |
Net investment income (loss) | 0.92(a) | 0.32 | (0.51) | (0.18) | (0.12) | 0.46 |
Portfolio turnover | 26(n) | 60 | 52 | 32 | 46 | 51 |
Net assets at end of period (000 omitted) | $4,586 | $5,204 | $7,200 | $8,893 | $4,624 | $1,311 |
Class I | Six months ended | Year ended | ||||
12/31/23 (unaudited) | 6/30/23 | 6/30/22 | 6/30/21 | 6/30/20 | 6/30/19 | |
Net asset value, beginning of period | $10.96 | $10.35 | $12.09 | $11.34 | $10.61 | $10.08 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.11 | $0.14 | $0.05 | $0.09 | $0.09 | $0.14 |
Net realized and unrealized gain (loss) | 0.61 | 0.61 | (1.51) | 0.84 | 0.79 | 0.53 |
Total from investment operations | $0.72 | $0.75 | $(1.46) | $0.93 | $0.88 | $0.67 |
Less distributions declared to shareholders | ||||||
From net investment income | $(0.22) | $(0.14) | $(0.10) | $(0.08) | $(0.14) | $(0.14) |
From net realized gain | — | — | (0.18) | (0.10) | (0.01) | — |
Total distributions declared to shareholders | $(0.22) | $(0.14) | $(0.28) | $(0.18) | $(0.15) | $(0.14) |
Net asset value, end of period (x) | $11.46 | $10.96 | $10.35 | $12.09 | $11.34 | $10.61 |
Total return (%) (r)(s)(t)(x) | 6.59(n) | 7.38 | (12.41) | 8.24 | 8.33 | 6.81 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 1.66(a) | 1.64 | 1.43 | 1.48 | 2.08 | 2.49 |
Expenses after expense reductions (f) | 0.99(a) | 0.99 | 0.99 | 0.99 | 0.99 | 0.96 |
Net investment income (loss) | 1.91(a) | 1.39 | 0.42 | 0.76 | 0.87 | 1.41 |
Portfolio turnover | 26(n) | 60 | 52 | 32 | 46 | 51 |
Net assets at end of period (000 omitted) | $11,812 | $11,703 | $12,499 | $18,654 | $5,093 | $1,870 |
Class R1 | Six months ended | Year ended | ||||
12/31/23 (unaudited) | 6/30/23 | 6/30/22 | 6/30/21 | 6/30/20 | 6/30/19 | |
Net asset value, beginning of period | $10.85 | $10.24 | $11.99 | $11.29 | $10.56 | $10.03 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.05 | $0.05 | $(0.05) | $(0.01) | $(0.02) | $0.04 |
Net realized and unrealized gain (loss) | 0.60 | 0.60 | (1.52) | 0.81 | 0.79 | 0.54 |
Total from investment operations | $0.65 | $0.65 | $(1.57) | $0.80 | $0.77 | $0.58 |
Less distributions declared to shareholders | ||||||
From net investment income | $(0.11) | $(0.04) | $— | $— | $(0.03) | $(0.05) |
From net realized gain | — | — | (0.18) | (0.10) | (0.01) | — |
Total distributions declared to shareholders | $(0.11) | $(0.04) | $(0.18) | $(0.10) | $(0.04) | $(0.05) |
Net asset value, end of period (x) | $11.39 | $10.85 | $10.24 | $11.99 | $11.29 | $10.56 |
Total return (%) (r)(s)(t)(x) | 6.03(n) | 6.41 | (13.32) | 7.10 | 7.32 | 5.81 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 2.66(a) | 2.64 | 2.44 | 2.49 | 3.10 | 3.49 |
Expenses after expense reductions (f) | 1.99(a) | 1.99 | 1.99 | 1.99 | 1.99 | 1.96 |
Net investment income (loss) | 0.90(a) | 0.44 | (0.47) | (0.05) | (0.15) | 0.39 |
Portfolio turnover | 26(n) | 60 | 52 | 32 | 46 | 51 |
Net assets at end of period (000 omitted) | $287 | $264 | $223 | $240 | $57 | $53 |
Class R2 | Six months ended | Year ended | ||||
12/31/23 (unaudited) | 6/30/23 | 6/30/22 | 6/30/21 | 6/30/20 | 6/30/19 | |
Net asset value, beginning of period | $10.94 | $10.33 | $12.06 | $11.32 | $10.59 | $10.06 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.08 | $0.09 | $0.00(w) | $0.03 | $0.04 | $0.09 |
Net realized and unrealized gain (loss) | 0.60 | 0.61 | (1.51) | 0.83 | 0.78 | 0.54 |
Total from investment operations | $0.68 | $0.70 | $(1.51) | $0.86 | $0.82 | $0.63 |
Less distributions declared to shareholders | ||||||
From net investment income | $(0.16) | $(0.09) | $(0.04) | $(0.02) | $(0.08) | $(0.10) |
From net realized gain | — | — | (0.18) | (0.10) | (0.01) | — |
Total distributions declared to shareholders | $(0.16) | $(0.09) | $(0.22) | $(0.12) | $(0.09) | $(0.10) |
Net asset value, end of period (x) | $11.46 | $10.94 | $10.33 | $12.06 | $11.32 | $10.59 |
Total return (%) (r)(s)(t)(x) | 6.28(n) | 6.86 | (12.80) | 7.62 | 7.82 | 6.31 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 2.16(a) | 2.14 | 1.94 | 2.01 | 2.60 | 2.99 |
Expenses after expense reductions (f) | 1.49(a) | 1.49 | 1.49 | 1.49 | 1.49 | 1.46 |
Net investment income (loss) | 1.41(a) | 0.91 | 0.01 | 0.27 | 0.35 | 0.90 |
Portfolio turnover | 26(n) | 60 | 52 | 32 | 46 | 51 |
Net assets at end of period (000 omitted) | $61 | $58 | $54 | $62 | $58 | $53 |
Class R3 | Six months ended | Year ended | ||||
12/31/23 (unaudited) | 6/30/23 | 6/30/22 | 6/30/21 | 6/30/20 | 6/30/19 | |
Net asset value, beginning of period | $10.95 | $10.34 | $12.08 | $11.33 | $10.60 | $10.07 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.09 | $0.12 | $0.03 | $0.06 | $0.07 | $0.12 |
Net realized and unrealized gain (loss) | 0.61 | 0.61 | (1.52) | 0.84 | 0.78 | 0.53 |
Total from investment operations | $0.70 | $0.73 | $(1.49) | $0.90 | $0.85 | $0.65 |
Less distributions declared to shareholders | ||||||
From net investment income | $(0.19) | $(0.12) | $(0.07) | $(0.05) | $(0.11) | $(0.12) |
From net realized gain | — | — | (0.18) | (0.10) | (0.01) | — |
Total distributions declared to shareholders | $(0.19) | $(0.12) | $(0.25) | $(0.15) | $(0.12) | $(0.12) |
Net asset value, end of period (x) | $11.46 | $10.95 | $10.34 | $12.08 | $11.33 | $10.60 |
Total return (%) (r)(s)(t)(x) | 6.43(n) | 7.13 | (12.65) | 7.96 | 8.07 | 6.56 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 1.91(a) | 1.89 | 1.69 | 1.76 | 2.35 | 2.74 |
Expenses after expense reductions (f) | 1.24(a) | 1.24 | 1.24 | 1.24 | 1.24 | 1.21 |
Net investment income (loss) | 1.66(a) | 1.16 | 0.26 | 0.51 | 0.60 | 1.15 |
Portfolio turnover | 26(n) | 60 | 52 | 32 | 46 | 51 |
Net assets at end of period (000 omitted) | $62 | $59 | $55 | $63 | $58 | $54 |
Class R4 | Six months ended | Year ended | ||||
12/31/23 (unaudited) | 6/30/23 | 6/30/22 | 6/30/21 | 6/30/20 | 6/30/19 | |
Net asset value, beginning of period | $10.97 | $10.36 | $12.10 | $11.34 | $10.61 | $10.08 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.11 | $0.15 | $0.06 | $0.09 | $0.09 | $0.14 |
Net realized and unrealized gain (loss) | 0.60 | 0.60 | (1.52) | 0.85 | 0.79 | 0.53 |
Total from investment operations | $0.71 | $0.75 | $(1.46) | $0.94 | $0.88 | $0.67 |
Less distributions declared to shareholders | ||||||
From net investment income | $(0.22) | $(0.14) | $(0.10) | $(0.08) | $(0.14) | $(0.14) |
From net realized gain | — | — | (0.18) | (0.10) | (0.01) | — |
Total distributions declared to shareholders | $(0.22) | $(0.14) | $(0.28) | $(0.18) | $(0.15) | $(0.14) |
Net asset value, end of period (x) | $11.46 | $10.97 | $10.36 | $12.10 | $11.34 | $10.61 |
Total return (%) (r)(s)(t)(x) | 6.49(n) | 7.39 | (12.40) | 8.31 | 8.33 | 6.81 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 1.65(a) | 1.64 | 1.44 | 1.51 | 2.10 | 2.49 |
Expenses after expense reductions (f) | 0.99(a) | 0.99 | 0.99 | 0.99 | 0.99 | 0.96 |
Net investment income (loss) | 1.91(a) | 1.41 | 0.51 | 0.77 | 0.86 | 1.40 |
Portfolio turnover | 26(n) | 60 | 52 | 32 | 46 | 51 |
Net assets at end of period (000 omitted) | $63 | $59 | $55 | $63 | $58 | $54 |
Class R6 | Six months ended | Year ended | ||||
12/31/23 (unaudited) | 6/30/23 | 6/30/22 | 6/30/21 | 6/30/20 | 6/30/19 | |
Net asset value, beginning of period | $10.97 | $10.36 | $12.10 | $11.35 | $10.62 | $10.08 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.11 | $0.15 | $0.07 | $0.10 | $0.10 | $0.14 |
Net realized and unrealized gain (loss) | 0.60 | 0.61 | (1.53) | 0.83 | 0.78 | 0.55 |
Total from investment operations | $0.71 | $0.76 | $(1.46) | $0.93 | $0.88 | $0.69 |
Less distributions declared to shareholders | ||||||
From net investment income | $(0.22) | $(0.15) | $(0.10) | $(0.08) | $(0.14) | $(0.15) |
From net realized gain | — | — | (0.18) | (0.10) | (0.01) | — |
Total distributions declared to shareholders | $(0.22) | $(0.15) | $(0.28) | $(0.18) | $(0.15) | $(0.15) |
Net asset value, end of period (x) | $11.46 | $10.97 | $10.36 | $12.10 | $11.35 | $10.62 |
Total return (%) (r)(s)(t)(x) | 6.56(n) | 7.48 | (12.35) | 8.26 | 8.33 | 6.92 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 1.59(a) | 1.57 | 1.37 | 1.45 | 2.07 | 2.48 |
Expenses after expense reductions (f) | 0.93(a) | 0.92 | 0.92 | 0.93 | 0.95 | 0.95 |
Net investment income (loss) | 1.97(a) | 1.48 | 0.58 | 0.83 | 0.89 | 1.41 |
Portfolio turnover | 26(n) | 60 | 52 | 32 | 46 | 51 |
Net assets at end of period (000 omitted) | $11,614 | $10,896 | $10,140 | $11,569 | $10,682 | $9,857 |
(a) | Annualized. |
(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: | ||||
United States | $3,917,249 | $128,742 | $— | $4,045,991 |
Japan | 3,207,220 | — | — | 3,207,220 |
Germany | 2,914,459 | 36,104 | — | 2,950,563 |
France | 1,891,916 | — | — | 1,891,916 |
United Kingdom | 1,539,636 | — | — | 1,539,636 |
Spain | 1,451,837 | — | — | 1,451,837 |
Netherlands | 1,344,570 | — | — | 1,344,570 |
Switzerland | 946,143 | — | — | 946,143 |
South Korea | — | 849,229 | — | 849,229 |
Other Countries | 1,007,136 | — | — | 1,007,136 |
U.S. Treasury Bonds & U.S. Government Agencies & Equivalents | — | 8,407,522 | — | 8,407,522 |
U.S. Corporate Bonds | — | 3,401,216 | — | 3,401,216 |
Residential Mortgage-Backed Securities | — | 1,500,329 | — | 1,500,329 |
Asset-Backed Securities (including CDOs) | — | 180,723 | — | 180,723 |
Foreign Bonds | — | 1,203,933 | — | 1,203,933 |
Mutual Funds | 3,863,071 | — | — | 3,863,071 |
Total | $22,083,237 | $15,707,798 | $— | $37,791,035 |
Other Financial Instruments | ||||
Forward Foreign Currency Exchange Contracts – Liabilities | $— | $(183,228) | $— | $(183,228) |
Written Options - Liabilities | — | (12,244) | — | (12,244) |
Fair Value (a) | |||
Risk | Derivative Contracts | Asset Derivatives | Liability Derivatives |
Equity | Written Option Contracts | $— | $(12,244) |
Equity | Purchased Option Contracts | 164,846 | — |
Foreign Exchange | Forward Foreign Currency Exchange Contracts | — | (183,228) |
Total | $164,846 | $(195,472) |
(a) | The value of purchased options outstanding is included in investments in unaffiliated issuers, at value, within the Statement of Assets and Liabilities. |
Risk | Futures Contracts | Forward Foreign Currency Exchange Contracts | Unaffiliated Issuers (Purchased Options) | Written Options |
Foreign Exchange | $— | $14,873 | $— | $— |
Equity | (33,609) | — | (348,727) | 32,346 |
Total | $(33,609) | $14,873 | $(348,727) | $32,346 |
Risk | Futures Contracts | Forward Foreign Currency Exchange Contracts | Unaffiliated Issuers (Purchased Options) | Written Options |
Foreign Exchange | $— | $(183,770) | $— | $— |
Equity | 31,833 | — | 161,064 | (4,078) |
Total | $31,833 | $(183,770) | $161,064 | $(4,078) |
Year ended 6/30/23 | |
Ordinary income (including any short-term capital gains) | $425,103 |
As of 12/31/23 | |
Cost of investments | $35,105,821 |
Gross appreciation | 3,796,591 |
Gross depreciation | (1,111,377) |
Net unrealized appreciation (depreciation) | $2,685,214 |
As of 6/30/23 | |
Undistributed ordinary income | 294,496 |
Capital loss carryforwards | (1,226,169) |
Other temporary differences | 402 |
Net unrealized appreciation (depreciation) | (128,117) |
Short-Term | $(912,338) |
Long-Term | (313,831) |
Total | $(1,226,169) |
Six months ended 12/31/23 | Year ended 6/30/23 | ||
Class A | $140,260 | $99,764 | |
Class B | 758 | 316 | |
Class C | 34,468 | 14,767 | |
Class I | 229,117 | 157,763 | |
Class R1 | 2,718 | 964 | |
Class R2 | 859 | 479 | |
Class R3 | 1,014 | 625 | |
Class R4 | 1,173 | 773 | |
Class R6 | 222,130 | 149,652 | |
Total | $632,497 | $425,103 |
Up to $1 billion | 0.80% |
In excess of $1 billion and up to $2.5 billion | 0.75% |
In excess of $2.5 billion | 0.70% |
Classes | ||||||||
A | B | C | I | R1 | R2 | R3 | R4 | R6 |
1.24% | 1.99% | 1.99% | 0.99% | 1.99% | 1.49% | 1.24% | 0.99% | 0.95% |
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% | $ 10,618 |
Class B | 0.75% | 0.25% | 1.00% | 1.00% | 376 |
Class C | 0.75% | 0.25% | 1.00% | 1.00% | 25,029 |
Class R1 | 0.75% | 0.25% | 1.00% | 1.00% | 1,338 |
Class R2 | 0.25% | 0.25% | 0.50% | 0.50% | 147 |
Class R3 | — | 0.25% | 0.25% | 0.25% | 75 |
Total Distribution and Service Fees | $37,583 |
(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 six months ended December 31, 2023 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 six months ended December 31, 2023, this rebate amounted to $3 for Class A and is included in the reduction of total expenses in the Statement of Operations. |
Amount | |
Class A | $14 |
Class B | — |
Class C | 500 |
Purchases | Sales | |
U.S. Government securities | $6,774,119 | $7,366,753 |
Non-U.S. Government securities | 1,947,599 | 5,399,124 |
Six months ended 12/31/23 | Year ended 6/30/23 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Class A | 84,238 | $945,669 | 65,895 | $678,200 | |
Class B | 410 | 4,400 | — | — | |
Class C | 16,060 | 170,815 | 9,166 | 94,503 | |
Class I | 38,161 | 421,081 | 164,209 | 1,709,377 | |
Class R1 | 1,546 | 16,981 | 5,151 | 53,020 | |
140,415 | $1,558,946 | 244,421 | $2,535,100 |
Six months ended 12/31/23 | Year ended 6/30/23 | ||||
Shares | Amount | Shares | Amount | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Class A | 12,568 | $140,260 | 9,800 | $99,764 | |
Class B | 68 | 758 | 31 | 316 | |
Class C | 3,116 | 34,468 | 1,465 | 14,767 | |
Class I | 20,512 | 229,117 | 15,498 | 157,763 | |
Class R1 | 245 | 2,718 | 95 | 964 | |
Class R2 | 77 | 859 | 47 | 479 | |
Class R3 | 91 | 1,014 | 61 | 625 | |
Class R4 | 105 | 1,173 | 76 | 773 | |
Class R6 | 19,887 | 222,130 | 14,686 | 149,652 | |
56,669 | $632,497 | 41,759 | $425,103 | ||
Shares reacquired | |||||
Class A | (90,815) | $(1,008,613) | (438,202) | $(4,466,178) | |
Class B | (609) | (6,789) | (1,705) | (17,826) | |
Class C | (97,587) | (1,072,919) | (236,159) | (2,413,357) | |
Class I | (95,486) | (1,072,903) | (319,523) | (3,261,979) | |
Class R1 | (953) | (10,216) | (2,654) | (27,376) | |
(285,450) | $(3,171,440) | (998,243) | $(10,186,716) | ||
Net change | |||||
Class A | 5,991 | $77,316 | (362,507) | $(3,688,214) | |
Class B | (131) | (1,631) | (1,674) | (17,510) | |
Class C | (78,411) | (867,636) | (225,528) | (2,304,087) | |
Class I | (36,813) | (422,705) | (139,816) | (1,394,839) | |
Class R1 | 838 | 9,483 | 2,592 | 26,608 | |
Class R2 | 77 | 859 | 47 | 479 | |
Class R3 | 91 | 1,014 | 61 | 625 | |
Class R4 | 105 | 1,173 | 76 | 773 | |
Class R6 | 19,887 | 222,130 | 14,686 | 149,652 | |
(88,366) | $(979,997) | (712,063) | $(7,226,513) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $2,206,478 | $8,164,332 | $6,507,649 | $(309) | $219 | $3,863,071 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $80,691 | $— |
![](https://capedge.com/proxy/N-CSRS/0001683863-24-000963/img208aec9d1.gif)
![](https://capedge.com/proxy/N-CSRS/0001683863-24-000963/imga2f577273.jpg)
Item 1(b):
Not applicable.
ITEM 2. CODE OF ETHICS.
During the period covered by this report, the Registrant has not amended any provision in its Code of Ethics (the "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.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for semi-annual reports.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable for semi-annual reports.
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. RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION.
Not Applicable.
ITEM 14. 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: Not applicable.
(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 XVI
By (Signature and Title)*
/S/ DAVID L. DILORENZO
David L. DiLorenzo, President
Date: February 14, 2024
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: February 14, 2024
By (Signature and Title)*
/S/ JAMES O. YOST
James O. Yost, Treasurer (Principal Financial Officer and Accounting Officer) Date: February 14, 2024
* Print name and title of each signing officer under his or her signature.