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 811-03732
MFS VARIABLE INSURANCE TRUST II
(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: December 31
Date of reporting period: December 31, 2021
ITEM 1. | REPORTS TO STOCKHOLDERS. |
Item 1(a): |
Core Equity Portfolio
1 | |
2 | |
3 | |
5 | |
7 | |
8 | |
13 | |
14 | |
15 | |
16 | |
18 | |
24 | |
25 | |
28 | |
31 | |
31 | |
31 | |
31 | |
31 | |
32 |
Microsoft Corp. | 7.9% |
Apple, Inc. | 6.0% |
Amazon.com, Inc. | 3.8% |
Alphabet, Inc., “C” | 3.1% |
Alphabet, Inc., “A” | 2.8% |
JPMorgan Chase & Co. | 2.4% |
Johnson & Johnson | 2.3% |
Accenture PLC, “A” | 2.2% |
Meta Platforms, Inc., “A” | 1.9% |
Applied Materials, Inc. | 1.8% |
Information Technology | 29.6% |
Health Care | 13.9% |
Consumer Discretionary | 12.2% |
Financials | 10.5% |
Communication Services | 10.2% |
Industrials | 7.2% |
Consumer Staples | 6.2% |
Real Estate | 3.5% |
Energy | 2.6% |
Materials | 2.0% |
Utilities | 1.8% |
(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. |
(h) | Security was not held in the portfolio at period end. |
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr |
Initial Class | 11/14/86 | 29.53% | 16.54% | 15.37% |
Service Class | 8/24/01 | 29.18% | 16.25% | 15.08% |
Standard & Poor's 500 Stock Index (f) | 28.71% | 18.47% | 16.55% |
(f) | Source: FactSet Research Systems Inc. |
(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). |
July 1, 2021 through December 31, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 7/01/21 | Ending Account Value 12/31/21 | Expenses Paid During Period (p) 7/01/21-12/31/21 | |
Initial Class | Actual | 0.43% | $1,000.00 | $1,103.40 | $2.28 |
Hypothetical (h) | 0.43% | $1,000.00 | $1,023.04 | $2.19 | |
Service Class | Actual | 0.68% | $1,000.00 | $1,101.89 | $3.60 |
Hypothetical (h) | 0.68% | $1,000.00 | $1,021.78 | $3.47 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 99.7% | ||||
Aerospace & Defense – 1.5% | ||||
Honeywell International, Inc. | 8,574 | $ 1,787,765 | ||
Huntington Ingalls Industries, Inc. | 5,871 | 1,096,350 | ||
Northrop Grumman Corp. | 12,383 | 4,793,088 | ||
Raytheon Technologies Corp. | 6,147 | 529,011 | ||
$8,206,214 | ||||
Alcoholic Beverages – 0.2% | ||||
Constellation Brands, Inc., “A” | 5,212 | $ 1,308,056 | ||
Apparel Manufacturers – 0.2% | ||||
NIKE, Inc., “B” | 7,321 | $ 1,220,191 | ||
Automotive – 2.0% | ||||
Lear Corp. | 13,455 | $ 2,461,592 | ||
LKQ Corp. | 26,262 | 1,576,508 | ||
Tesla, Inc. (a) | 6,087 | 6,432,620 | ||
$10,470,720 | ||||
Biotechnology – 1.5% | ||||
Biogen, Inc. (a) | 10,553 | $ 2,531,876 | ||
Gilead Sciences, Inc. | 15,569 | 1,130,465 | ||
Incyte Corp. (a) | 6,117 | 448,988 | ||
Vertex Pharmaceuticals, Inc. (a) | 17,375 | 3,815,550 | ||
$7,926,879 | ||||
Brokerage & Asset Managers – 0.6% | ||||
Invesco Ltd. | 83,316 | $ 1,917,934 | ||
KKR & Co., Inc. | 13,849 | 1,031,751 | ||
$2,949,685 | ||||
Business Services – 2.9% | ||||
Accenture PLC, “A” | 28,620 | $ 11,864,421 | ||
Amdocs Ltd. | 7,899 | 591,161 | ||
PayPal Holdings, Inc. (a) | 17,308 | 3,263,943 | ||
$15,719,525 | ||||
Cable TV – 1.8% | ||||
Charter Communications, Inc., “A” (a) | 11,225 | $ 7,318,363 | ||
Comcast Corp., “A” | 42,134 | 2,120,604 | ||
$9,438,967 | ||||
Chemicals – 0.5% | ||||
Eastman Chemical Co. | 23,395 | $ 2,828,689 | ||
Computer Software – 10.0% | ||||
Adobe Systems, Inc. (a) | 16,417 | $ 9,309,424 | ||
Atlassian Corp. PLC, “A” (a) | 5,304 | 2,022,362 | ||
Microsoft Corp. | 126,068 | 42,399,190 | ||
$53,730,976 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Computer Software - Systems – 7.9% | ||||
Apple, Inc. | 179,634 | $ 31,897,609 | ||
EPAM Systems, Inc. (a) | 1,840 | 1,229,948 | ||
HP, Inc. | 125,830 | 4,740,016 | ||
ServiceNow, Inc. (a) | 3,027 | 1,964,856 | ||
SS&C Technologies Holdings, Inc. | 18,860 | 1,546,143 | ||
Zebra Technologies Corp., “A” (a) | 1,926 | 1,146,355 | ||
$42,524,927 | ||||
Construction – 0.5% | ||||
Otis Worldwide Corp. | 14,473 | $ 1,260,164 | ||
Sherwin-Williams Co. | 3,687 | 1,298,414 | ||
$2,558,578 | ||||
Consumer Products – 1.2% | ||||
Colgate-Palmolive Co. | 73,506 | $ 6,273,002 | ||
Consumer Services – 1.1% | ||||
Booking Holdings, Inc. (a) | 2,452 | $ 5,882,912 | ||
Electrical Equipment – 1.5% | ||||
Johnson Controls International PLC | 57,808 | $ 4,700,368 | ||
TE Connectivity Ltd. | 20,497 | 3,306,986 | ||
$8,007,354 | ||||
Electronics – 7.0% | ||||
Advanced Micro Devices (a) | 22,462 | $ 3,232,282 | ||
Applied Materials, Inc. | 62,879 | 9,894,639 | ||
Intel Corp. | 99,235 | 5,110,603 | ||
NVIDIA Corp. | 20,680 | 6,082,195 | ||
NXP Semiconductors N.V. | 20,217 | 4,605,028 | ||
Texas Instruments, Inc. | 44,194 | 8,329,243 | ||
$37,253,990 | ||||
Energy - Independent – 1.4% | ||||
EOG Resources, Inc. | 29,852 | $ 2,651,753 | ||
Valero Energy Corp. | 65,755 | 4,938,858 | ||
$7,590,611 | ||||
Food & Beverages – 3.2% | ||||
Archer Daniels Midland Co. | 68,638 | $ 4,639,242 | ||
General Mills, Inc. | 21,281 | 1,433,914 | ||
J.M. Smucker Co. | 15,738 | 2,137,535 | ||
Mondelez International, Inc. | 75,613 | 5,013,898 | ||
PepsiCo, Inc. | 23,395 | 4,063,946 | ||
$17,288,535 | ||||
Food & Drug Stores – 1.4% | ||||
Wal-Mart Stores, Inc. | 50,636 | $ 7,326,523 | ||
Forest & Paper Products – 0.3% | ||||
Rayonier, Inc., REIT | 20,889 | $ 843,080 | ||
Weyerhaeuser Co., REIT | 20,649 | 850,326 | ||
$1,693,406 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Gaming & Lodging – 0.4% | ||||
International Game Technology PLC | 32,903 | $ 951,226 | ||
Marriott International, Inc., “A” (a) | 8,137 | 1,344,558 | ||
$2,295,784 | ||||
Health Maintenance Organizations – 1.5% | ||||
Cigna Corp. | 19,115 | $ 4,389,377 | ||
Humana, Inc. | 6,502 | 3,016,018 | ||
UnitedHealth Group, Inc. | 1,120 | 562,397 | ||
$7,967,792 | ||||
Insurance – 3.1% | ||||
Berkshire Hathaway, Inc., “B” (a) | 6,201 | $ 1,854,099 | ||
Equitable Holdings, Inc. | 44,479 | 1,458,466 | ||
Everest Re Group Ltd. | 19,241 | 5,270,495 | ||
Hartford Financial Services Group, Inc. | 8,114 | 560,191 | ||
MetLife, Inc. | 110,214 | 6,887,273 | ||
Reinsurance Group of America, Inc. | 3,901 | 427,120 | ||
$16,457,644 | ||||
Internet – 8.3% | ||||
Alphabet, Inc., “A” (a) | 5,213 | $ 15,102,270 | ||
Alphabet, Inc., “C” (a) | 5,683 | 16,444,272 | ||
Gartner, Inc. (a) | 8,325 | 2,783,214 | ||
Meta Platforms, Inc., “A” (a) | 29,521 | 9,929,388 | ||
$44,259,144 | ||||
Leisure & Toys – 1.9% | ||||
Brunswick Corp. | 55,785 | $ 5,619,223 | ||
Electronic Arts, Inc. | 15,140 | 1,996,966 | ||
Polaris, Inc. | 20,870 | 2,293,822 | ||
$9,910,011 | ||||
Machinery & Tools – 2.0% | ||||
AGCO Corp. | 21,628 | $ 2,509,281 | ||
Eaton Corp. PLC | 35,614 | 6,154,811 | ||
Regal Rexnord Corp. | 12,488 | 2,125,208 | ||
$10,789,300 | ||||
Major Banks – 5.7% | ||||
Bank of America Corp. | 98,199 | $ 4,368,874 | ||
Goldman Sachs Group, Inc. | 21,819 | 8,346,858 | ||
JPMorgan Chase & Co. | 79,725 | 12,624,454 | ||
Wells Fargo & Co. | 104,640 | 5,020,627 | ||
$30,360,813 | ||||
Medical & Health Technology & Services – 2.9% | ||||
HCA Healthcare, Inc. | 8,851 | $ 2,273,999 | ||
Laboratory Corp. of America Holdings (a) | 15,835 | 4,975,515 | ||
McKesson Corp. | 32,576 | 8,097,416 | ||
$15,346,930 | ||||
Medical Equipment – 2.9% | ||||
Abbott Laboratories | 12,849 | $ 1,808,368 | ||
Align Technology, Inc. (a) | 1,453 | 954,883 | ||
Boston Scientific Corp. (a) | 25,126 | 1,067,352 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Medical Equipment – continued | ||||
Danaher Corp. | 5,886 | $ 1,936,553 | ||
Medtronic PLC | 52,450 | 5,425,953 | ||
Thermo Fisher Scientific, Inc. | 6,260 | 4,176,922 | ||
$15,370,031 | ||||
Natural Gas - Pipeline – 1.0% | ||||
Cheniere Energy, Inc. | 26,618 | $ 2,699,598 | ||
ONEOK, Inc. | 43,095 | 2,532,262 | ||
$5,231,860 | ||||
Oil Services – 0.2% | ||||
NOV, Inc. | 70,783 | $ 959,110 | ||
Other Banks & Diversified Financials – 1.7% | ||||
American Express Co. | 7,968 | $ 1,303,565 | ||
SLM Corp. | 204,260 | 4,017,794 | ||
Synchrony Financial | 21,859 | 1,014,039 | ||
Visa, Inc., “A” | 13,888 | 3,009,668 | ||
$9,345,066 | ||||
Pharmaceuticals – 5.2% | ||||
Bristol-Myers Squibb Co. | 8,532 | $ 531,970 | ||
Eli Lilly & Co. | 22,990 | 6,350,298 | ||
Johnson & Johnson | 71,524 | 12,235,611 | ||
Merck & Co., Inc. | 103,657 | 7,944,272 | ||
Pfizer, Inc. | 10,006 | 590,854 | ||
$27,653,005 | ||||
Railroad & Shipping – 1.1% | ||||
CSX Corp. | 160,253 | $ 6,025,513 | ||
Real Estate – 3.2% | ||||
Extra Space Storage, Inc., REIT | 33,265 | $ 7,542,174 | ||
Life Storage, Inc., REIT | 21,146 | 3,239,144 | ||
Simon Property Group, Inc., REIT | 31,041 | 4,959,421 | ||
Spirit Realty Capital, Inc., REIT | 31,665 | 1,525,936 | ||
$17,266,675 | ||||
Restaurants – 1.4% | ||||
Starbucks Corp. | 48,088 | $ 5,624,853 | ||
Texas Roadhouse, Inc. | 23,478 | 2,096,116 | ||
$7,720,969 | ||||
Specialty Chemicals – 1.2% | ||||
Corteva, Inc. | 48,796 | $ 2,307,075 | ||
DuPont de Nemours, Inc. | 20,425 | 1,649,932 | ||
Linde PLC | 7,543 | 2,613,121 | ||
$6,570,128 | ||||
Specialty Stores – 5.6% | ||||
Amazon.com, Inc. (a) | 6,142 | $ 20,479,516 | ||
AutoZone, Inc. (a) | 952 | 1,995,763 | ||
Home Depot, Inc. | 14,161 | 5,876,957 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Specialty Stores – continued | ||||
Ross Stores, Inc. | 12,430 | $ 1,420,500 | ||
$29,772,736 | ||||
Telephone Services – 0.3% | ||||
Lumen Technologies, Inc. | 139,994 | $ 1,756,925 | ||
Tobacco – 0.2% | ||||
Philip Morris International, Inc. | 11,763 | $ 1,117,485 | ||
Trucking – 1.4% | ||||
Knight-Swift Transportation Holdings, Inc. | 30,360 | $ 1,850,138 | ||
United Parcel Service, Inc., “B” | 26,700 | 5,722,878 | ||
$7,573,016 | ||||
Utilities - Electric Power – 1.8% | ||||
American Electric Power Co., Inc. | 6,167 | $ 548,678 | ||
CenterPoint Energy, Inc. | 36,244 | 1,011,570 | ||
Exelon Corp. | 138,235 | 7,984,454 | ||
$9,544,702 | ||||
Total Common Stocks (Identified Cost, $322,426,262) | $533,494,379 | |||
Investment Companies (h) – 0.3% | ||||
Money Market Funds – 0.3% | ||||
MFS Institutional Money Market Portfolio, 0.07% (v) (Identified Cost, $1,708,524) | 1,708,524 | $ 1,708,524 | ||
Other Assets, Less Liabilities – (0.0)% | (116,031) | |||
Net Assets – 100.0% | $535,086,872 |
(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 $1,708,524 and $533,494,379, 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: | |
REIT | Real Estate Investment Trust |
Financial Statements | Statement of Assets and Liabilities |
At 12/31/21Assets | |
Investments in unaffiliated issuers, at value (identified cost, $322,426,262) | $533,494,379 |
Investments in affiliated issuers, at value (identified cost, $1,708,524) | 1,708,524 |
Cash | 20,733 |
Receivables for | |
Fund shares sold | 4,110 |
Dividends | 356,534 |
Other assets | 2,453 |
Total assets | $535,586,733 |
Liabilities | |
Payables for | |
Fund shares reacquired | $408,924 |
Payable to affiliates | |
Investment adviser | 11,371 |
Administrative services fee | 452 |
Shareholder servicing costs | 117 |
Distribution and/or service fees | 3,045 |
Payable for independent Trustees' compensation | 183 |
Accrued expenses and other liabilities | 75,769 |
Total liabilities | $499,861 |
Net assets | $535,086,872 |
Net assets consist of | |
Paid-in capital | $244,442,827 |
Total distributable earnings (loss) | 290,644,045 |
Net assets | $535,086,872 |
Shares of beneficial interest outstanding | 7,847,426 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $313,788,176 | 4,579,162 | $68.53 |
Service Class | 221,298,696 | 3,268,264 | 67.71 |
Financial Statements | Statement of Operations |
Year ended 12/31/21 | |
Net investment income (loss) | |
Income | |
Dividends | $7,234,636 |
Other | 19,505 |
Dividends from affiliated issuers | 1,289 |
Income on securities loaned | 903 |
Foreign taxes withheld | (4,122) |
Total investment income | $7,252,211 |
Expenses | |
Management fee | $2,051,308 |
Distribution and/or service fees | 527,268 |
Shareholder servicing costs | 17,906 |
Administrative services fee | 77,500 |
Independent Trustees' compensation | 9,279 |
Custodian fee | 23,112 |
Shareholder communications | 23,711 |
Audit and tax fees | 56,230 |
Legal fees | 2,541 |
Miscellaneous | 24,811 |
Total expenses | $2,813,666 |
Reduction of expenses by investment adviser | (65,158) |
Net expenses | $2,748,508 |
Net investment income (loss) | $4,503,703 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $75,588,447 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $50,895,083 |
Net realized and unrealized gain (loss) | $126,483,530 |
Change in net assets from operations | $130,987,233 |
Financial Statements | Statements of Changes in Net Assets |
Year ended | ||
12/31/21 | 12/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $4,503,703 | $5,213,358 |
Net realized gain (loss) | 75,588,447 | 34,962,421 |
Net unrealized gain (loss) | 50,895,083 | 22,756,111 |
Change in net assets from operations | $130,987,233 | $62,931,890 |
Total distributions to shareholders | $(40,220,081) | $(29,241,138) |
Change in net assets from fund share transactions | $(28,019,737) | $(33,385,390) |
Total change in net assets | $62,747,415 | $305,362 |
Net assets | ||
At beginning of period | 472,339,457 | 472,034,095 |
At end of period | $535,086,872 | $472,339,457 |
Financial Statements | Financial Highlights |
Initial Class | Year ended | ||||
12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $57.28 | $53.06 | $45.29 | $54.23 | $46.62 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.63 | $0.67 | $0.80 | $0.74 | $0.68 |
Net realized and unrealized gain (loss) | 15.96 | 7.21 | 11.74 | (4.12) | 8.80 |
Total from investment operations | $16.59 | $7.88 | $12.54 | $(3.38) | $9.48 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.74) | $(0.88) | $(0.79) | $(0.77) | $(0.78) |
From net realized gain | (4.60) | (2.78) | (3.98) | (4.79) | (1.09) |
Total distributions declared to shareholders | $(5.34) | $(3.66) | $(4.77) | $(5.56) | $(1.87) |
Net asset value, end of period (x) | $68.53 | $57.28 | $53.06 | $45.29 | $54.23 |
Total return (%) (k)(r)(s)(x) | 29.53 | 15.34 | 29.17 | (7.74) | 20.76 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.45 | 0.45 | 0.45 | 0.45 | 0.46 |
Expenses after expense reductions | 0.43 | 0.44 | 0.44 | 0.44 | 0.45 |
Net investment income (loss) | 0.98 | 1.30 | 1.58 | 1.39 | 1.35 |
Portfolio turnover | 51 | 56 | 46 | 54 | 51 |
Net assets at end of period (000 omitted) | $313,788 | $280,679 | $285,654 | $256,439 | $320,384 |
Service Class | Year ended | ||||
12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $56.68 | $52.54 | $44.87 | $53.79 | $46.26 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.47 | $0.54 | $0.67 | $0.61 | $0.55 |
Net realized and unrealized gain (loss) | 15.76 | 7.12 | 11.64 | (4.11) | 8.73 |
Total from investment operations | $16.23 | $7.66 | $12.31 | $(3.50) | $9.28 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.60) | $(0.74) | $(0.66) | $(0.63) | $(0.66) |
From net realized gain | (4.60) | (2.78) | (3.98) | (4.79) | (1.09) |
Total distributions declared to shareholders | $(5.20) | $(3.52) | $(4.64) | $(5.42) | $(1.75) |
Net asset value, end of period (x) | $67.71 | $56.68 | $52.54 | $44.87 | $53.79 |
Total return (%) (k)(r)(s)(x) | 29.18 | 15.06 | 28.87 | (7.99) | 20.47 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.70 | 0.70 | 0.70 | 0.70 | 0.71 |
Expenses after expense reductions | 0.68 | 0.69 | 0.69 | 0.69 | 0.70 |
Net investment income (loss) | 0.73 | 1.05 | 1.33 | 1.14 | 1.10 |
Portfolio turnover | 51 | 56 | 46 | 54 | 51 |
Net assets at end of period (000 omitted) | $221,299 | $191,661 | $186,380 | $157,522 | $182,103 |
(d) | Per share data is based on average shares outstanding. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(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 | $533,494,379 | $— | $— | $533,494,379 |
Mutual Funds | 1,708,524 | — | — | 1,708,524 |
Total | $535,202,903 | $— | $— | $535,202,903 |
Year ended 12/31/21 | Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $8,025,024 | $6,680,112 |
Long-term capital gains | 32,195,057 | 22,561,026 |
Total distributions | $40,220,081 | $29,241,138 |
As of 12/31/21 | |
Cost of investments | $324,625,853 |
Gross appreciation | 213,958,647 |
Gross depreciation | (3,381,597) |
Net unrealized appreciation (depreciation) | $210,577,050 |
Undistributed ordinary income | 22,857,328 |
Undistributed long-term capital gain | 57,209,667 |
Total distributable earnings (loss) | $290,644,045 |
Year ended 12/31/21 | Year ended 12/31/20 | ||
Initial Class | $23,828,611 | $17,686,199 | |
Service Class | 16,391,470 | 11,554,939 | |
Total | $40,220,081 | $29,241,138 |
Up to $1 billion | 0.40% |
In excess of $1 billion and up to $2.5 billion | 0.375% |
In excess of $2.5 billion | 0.35% |
Year ended 12/31/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 87,937 | $5,655,805 | 63,891 | $3,132,327 | |
Service Class | 205,265 | 13,181,638 | 183,279 | 8,493,425 | |
293,202 | $18,837,443 | 247,170 | $11,625,752 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | 363,572 | $23,508,544 | 326,069 | $17,421,868 | |
Service Class | 256,317 | 16,391,470 | 218,389 | 11,554,939 | |
619,889 | $39,900,014 | 544,458 | $28,976,807 |
Year ended 12/31/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares reacquired | |||||
Initial Class | (772,417) | $(49,707,987) | (873,552) | $(45,226,511) | |
Service Class | (574,966) | (37,049,207) | (567,361) | (28,761,438) | |
(1,347,383) | $(86,757,194) | (1,440,913) | $(73,987,949) | ||
Net change | |||||
Initial Class | (320,908) | $(20,543,638) | (483,592) | $(24,672,316) | |
Service Class | (113,384) | (7,476,099) | (165,693) | (8,713,074) | |
(434,292) | $(28,019,737) | (649,285) | $(33,385,390) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $2,205,534 | $65,904,090 | $66,401,100 | $— | $— | $1,708,524 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $1,289 | $— |
February 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 | 135 | 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 | 135 | Private investor | N/A | |||||
Steven E. Buller (age 70) | Trustee | February 2014 | 135 | Private investor | N/A | |||||
John A. Caroselli (age 67) | Trustee | March 2017 | 135 | Private investor; JC Global Advisors, LLC (management consulting), President (since 2015) | N/A | |||||
Maureen R. Goldfarb (age 66) | Trustee | January 2009 | 135 | Private investor | N/A | |||||
Peter D. Jones (age 66) | Trustee | January 2019 | 135 | Private investor | N/A | |||||
James W. Kilman, Jr. (age 60) | Trustee | January 2019 | 135 | 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) | |||||
Clarence Otis, Jr. (age 65) | Trustee | March 2017 | 135 | Private investor | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director | |||||
Maryanne L. Roepke (age 65) | Trustee | May 2014 | 135 | Private investor | N/A | |||||
Laurie J. Thomsen (age 64) | Trustee | March 2005 | 135 | 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 | 135 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | ||||
Kino Clark (k) (age 53) | Assistant Treasurer | January 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
John W. Clark, Jr. (k) (age 54) | Assistant Treasurer | April 2017 | 135 | Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head - Treasurer's Office (until February 2017) | ||||
Thomas H. Connors (k) (age 62) | Assistant Secretary and Assistant Clerk | September 2012 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
David L. DiLorenzo (k) (age 53) | President | July 2005 | 135 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 54) | Secretary and Clerk | April 2017 | 135 | 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 48) | Assistant Secretary and Assistant Clerk | June 2006 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
Amanda S. Mooradian (k) (age 42) | Assistant Secretary and Assistant Clerk | September 2018 | 135 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 51) | Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Kasey L. Phillips (k) (age 51) | Assistant Treasurer | September 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 47) | Assistant Secretary and Assistant Clerk | October 2014 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Martin J. Wolin (k) (age 54) | Chief Compliance Officer | July 2015 | 135 | Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer | ||||
James O. Yost (k) (age 61) | Treasurer | September 1990 | 135 | 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 | Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 |
Portfolio Manager(s) | |
Jim Fallon Matt Krummell Jonathan Sage Jed Stocks |
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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Investment Grade Corporates | 80.3% |
High Yield Corporates | 10.6% |
Emerging Markets Bonds | 3.9% |
U.S. Treasury Securities | 2.5% |
Municipal Bonds | 1.8% |
Commercial Mortgage-Backed Securities | 1.4% |
Non-U.S. Government Bonds | 0.3% |
Collateralized Debt Obligations | 0.3% |
Asset-Backed Securities (o) | 0.0% |
AAA | 2.1% |
AA | 5.1% |
A | 24.6% |
BBB | 54.7% |
BB | 8.5% |
B | 3.4% |
C | 0.1% |
Not Rated | 2.6% |
Cash & Cash Equivalents | 1.4% |
Other | (2.5)% |
Average Duration (d) | 7.9 |
Average Effective Maturity (m) | 11.5 yrs. |
(a) | For all securities other than those specifically described below, ratings are assigned to underlying securities utilizing ratings from Moody’s, Fitch, and Standard & Poor’s rating agencies and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. If none of the 3 rating agencies above assign a rating, but the security is rated by DBRS Morningstar, then the DBRS Morningstar rating is assigned. If none of the 4 rating agencies listed above rate the security, but the security is rated by the Kroll Bond Rating Agency (KBRA), then the KBRA rating is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). Securities rated BBB or higher are considered investment grade. All ratings are subject to change. U.S. Government includes securities issued by the U.S. Department of the Treasury. Federal Agencies includes rated and unrated U.S. Agency fixed-income securities, U.S. Agency mortgage-backed securities, and collateralized mortgage obligations of U.S. Agency mortgage-backed securities. Not Rated includes fixed income securities and fixed income derivatives that have not been rated by any rating agency. The fund may or may not have held all of these instruments on this date. The fund is not rated by these agencies. |
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value due to the interest rate move. |
(i) | For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining each instrument’s effective maturity for purposes of calculating the fund’s dollar-weighted average effective maturity, MFS uses the instrument’s stated maturity or, if applicable, an earlier date on which MFS believes it is probable that a maturity-shortening device (such as a put, pre-refunding or prepayment) will cause the instrument to be repaid. Such an earlier date can be substantially shorter than the instrument’s stated maturity. |
(o) | Less than 0.1%. |
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value. |
(r) | Securities rated “BBB”, “Baa”, or higher are considered investment grade; securities rated “BB”, “Ba”, or below are considered non-investment grade. Ratings are assigned to underlying securities utilizing ratings from Moody's, Fitch, and Standard & Poor's and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. If none of the 3 rating agencies above assign a rating, but the security is rated by DBRS Morningstar, then the DBRS Morningstar rating is assigned. If none of the 4 rating agencies listed above rate the security, but the security is rated by the Kroll Bond Rating Agency (KBRA), then the KBRA rating is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). For securities that are not rated by any of the rating agencies, the security is considered Not Rated. |
(y) | A yield curve graphically depicts the yields of different maturity bonds of the same credit quality and type; a normal yield curve is upward sloping, with short-term rates lower than long-term rates. |
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr |
Initial Class | 5/06/98 | (1.40)% | 5.22% | 4.84% |
Service Class | 8/24/01 | (1.66)% | 4.97% | 4.59% |
Bloomberg U.S. Credit Bond Index (f) | (1.08)% | 5.05% | 4.45% |
(f) | Source: FactSet Research Systems Inc. |
(a) | Source: Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg or Bloomberg's licensors own all proprietary rights in the Bloomberg Indices. Bloomberg neither approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith. |
July 1, 2021 through December 31, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 7/01/21 | Ending Account Value 12/31/21 | Expenses Paid During Period (p) 7/01/21-12/31/21 | |
Initial Class | Actual | 0.63% | $1,000.00 | $999.37 | $3.17 |
Hypothetical (h) | 0.63% | $1,000.00 | $1,022.03 | $3.21 | |
Service Class | Actual | 0.88% | $1,000.00 | $998.55 | $4.43 |
Hypothetical (h) | 0.88% | $1,000.00 | $1,020.77 | $4.48 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Bonds – 97.7% | ||||
Aerospace & Defense – 2.0% | ||||
Boeing Co., 5.15%, 5/01/2030 | $ | 1,171,000 | $ 1,364,333 | |
Boeing Co., 3.75%, 2/01/2050 | 342,000 | 355,453 | ||
Raytheon Technologies Corp., 1.9%, 9/01/2031 | 293,000 | 282,704 | ||
Raytheon Technologies Corp., 2.375%, 3/15/2032 | 434,000 | 433,529 | ||
Raytheon Technologies Corp., 3.03%, 3/15/2052 | 434,000 | 436,087 | ||
TransDigm, Inc., 6.25%, 3/15/2026 (n) | 609,000 | 632,979 | ||
TransDigm, Inc., 4.625%, 1/15/2029 | 633,000 | 630,898 | ||
$4,135,983 | ||||
Apparel Manufacturers – 0.5% | ||||
Tapestry, Inc., 4.125%, 7/15/2027 | $ | 95,000 | $ 102,632 | |
Tapestry, Inc., 3.05%, 3/15/2032 | 924,000 | 929,429 | ||
$1,032,061 | ||||
Asset-Backed & Securitized – 1.7% | ||||
3650R Commercial Mortgage Trust, 2021-PF1, “XA”, 1.038%, 11/15/2054 (i) | $ | 3,888,264 | $ 283,322 | |
ACREC 2021-FL1 Ltd., “A”, FLR, 1.253% (LIBOR - 1mo. + 1.15%), 10/16/2036 (n) | 656,500 | 656,500 | ||
Bayview Financial Revolving Mortgage Loan Trust, FLR, 1.701% (LIBOR - 1mo. + 1.6%), 12/28/2040 (n) | 70,066 | 77,990 | ||
Benchmark Mortgage Trust, 2021-B27, “XA”, 1.271%, 7/15/2054 (i) | 7,063,509 | 660,028 | ||
JPMorgan Chase Commercial Mortgage Securities Corp., 5.65%, 7/15/2042 (n) | 98,666 | 80,831 | ||
KREF Ltd., 2018-FT1, “A”, FLR, 1.178% (LIBOR - 1mo. + 1.1%), 2/15/2039 (n) | 288,000 | 287,472 | ||
KREF Ltd., 2018-FT1, “AS”, FLR, 1.408% (LIBOR - 1mo. + 1.3%), 2/15/2039 (n) | 316,500 | 314,163 | ||
Lehman Brothers Commercial Conduit Mortgage Trust, 0.904%, 2/18/2030 (i) | 10,257 | 0 | ||
PFP III, 2021-8, “A”, FLR, 1.108% (LIBOR - 1mo. + 1%), 8/09/2037 (n) | 575,000 | 572,204 | ||
PFP III, 2021-8, “AS”, FLR, 1.358% (LIBOR - 1mo. + 1.25%), 8/09/2037 (n) | 603,000 | 600,834 | ||
$3,533,344 | ||||
Automotive – 1.7% | ||||
Daimler Trucks Finance North America LLC, 2.5%, 12/14/2031 (n) | $ | 478,000 | $ 477,940 | |
Hyundai Capital America, 3%, 2/10/2027 (n) | 1,274,000 | 1,318,240 | ||
Hyundai Capital America, 2%, 6/15/2028 (n) | 1,255,000 | 1,223,523 | ||
Hyundai Capital America, 6.375%, 4/08/2030 (n) | 352,000 | 443,671 | ||
$3,463,374 | ||||
Broadcasting – 2.1% | ||||
Discovery, Inc., 4.125%, 5/15/2029 | $ | 373,000 | $ 412,369 | |
Discovery, Inc., 5.3%, 5/15/2049 | 600,000 | 751,222 | ||
Prosus N.V., 3.832%, 2/08/2051 (n) | 542,000 | 505,501 | ||
Walt Disney Co., 3.5%, 5/13/2040 | 1,825,000 | 1,998,728 | ||
Walt Disney Co., 3.6%, 1/13/2051 | 593,000 | 670,604 | ||
$4,338,424 | ||||
Brokerage & Asset Managers – 2.8% | ||||
Banco BTG Pactual S.A. (Cayman Islands), 7.75% to 2/15/2024, FLR (CMT - 5yr. + 5.257%) to 2/15/2029 (n) | $ | 615,000 | $ 645,756 | |
Brookfield Finance, Inc., 2.34%, 1/30/2032 | 1,147,000 | 1,118,840 | ||
Charles Schwab Corp., 1.95%, 12/01/2031 | 1,724,000 | 1,693,017 | ||
Intercontinental Exchange, Inc., 2.1%, 6/15/2030 | 1,456,000 | 1,446,696 | ||
Intercontinental Exchange, Inc., 1.85%, 9/15/2032 | 412,000 | 394,361 | ||
Intercontinental Exchange, Inc., 3%, 9/15/2060 | 413,000 | 406,275 | ||
$5,704,945 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Building – 1.1% | ||||
CRH America Finance, Inc., 4.5%, 4/04/2048 (n) | $ | 896,000 | $ 1,092,587 | |
Vulcan Materials Co., 3.5%, 6/01/2030 | 671,000 | 724,748 | ||
Vulcan Materials Co., 4.5%, 6/15/2047 | 447,000 | 548,781 | ||
$2,366,116 | ||||
Business Services – 4.9% | ||||
Equinix, Inc., 2.625%, 11/18/2024 | $ | 838,000 | $ 863,449 | |
Equinix, Inc., 2.5%, 5/15/2031 | 934,000 | 933,352 | ||
Equinix, Inc., 3%, 7/15/2050 | 661,000 | 632,316 | ||
Fiserv, Inc., 2.25%, 6/01/2027 | 817,000 | 831,210 | ||
Fiserv, Inc., 4.4%, 7/01/2049 | 711,000 | 847,047 | ||
Global Payments, Inc., 2.9%, 5/15/2030 | 963,000 | 980,481 | ||
IHS Markit Ltd., 4.25%, 5/01/2029 | 465,000 | 528,937 | ||
Mastercard, Inc., 3.85%, 3/26/2050 | 965,000 | 1,159,748 | ||
NXP B.V./NXP Funding LLC/NXP USA, Inc., 2.5%, 5/11/2031 (n) | 753,000 | 754,922 | ||
NXP B.V./NXP Funding LLC/NXP USA, Inc., 3.25%, 5/11/2041 (n) | 646,000 | 667,683 | ||
Visa, Inc., 3.65%, 9/15/2047 | 865,000 | 1,006,634 | ||
Visa, Inc., 2%, 8/15/2050 | 1,117,000 | 978,244 | ||
$10,184,023 | ||||
Cable TV – 2.7% | ||||
CCO Holdings LLC/CCO Holdings Capital Corp., 4.5%, 8/15/2030 (n) | $ | 304,000 | $ 311,050 | |
CCO Holdings LLC/CCO Holdings Capital Corp., 4.5%, 5/01/2032 | 305,000 | 313,769 | ||
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 6.384%, 10/23/2035 | 58,000 | 74,921 | ||
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 5.375%, 5/01/2047 | 1,079,000 | 1,287,901 | ||
Comcast Corp., 1.95%, 1/15/2031 | 371,000 | 363,502 | ||
Comcast Corp., 2.8%, 1/15/2051 | 545,000 | 525,054 | ||
Sirius XM Radio, Inc., 5%, 8/01/2027 (n) | 594,000 | 617,368 | ||
Sirius XM Radio, Inc., 5.5%, 7/01/2029 (n) | 292,000 | 314,630 | ||
Sirius XM Radio, Inc., 4.125%, 7/01/2030 (n) | 644,000 | 644,000 | ||
Time Warner Cable, Inc., 4.5%, 9/15/2042 | 955,000 | 1,041,152 | ||
$5,493,347 | ||||
Chemicals – 0.4% | ||||
RPM International, Inc., 4.55%, 3/01/2029 | $ | 131,000 | $ 148,265 | |
RPM International, Inc., 4.25%, 1/15/2048 | 67,000 | 76,246 | ||
Sherwin-Williams Co., 4.5%, 6/01/2047 | 500,000 | 623,103 | ||
$847,614 | ||||
Computer Software – 0.5% | ||||
Microsoft Corp., 2.525%, 6/01/2050 | $ | 1,047,000 | $ 1,021,022 | |
Computer Software - Systems – 2.2% | ||||
Apple, Inc., 2.05%, 9/11/2026 (f) | $ | 2,000,000 | $ 2,054,520 | |
Apple, Inc., 1.7%, 8/05/2031 | 717,000 | 699,687 | ||
Apple, Inc., 2.7%, 8/05/2051 | 727,000 | 719,158 | ||
Commscope, Inc., 4.75%, 9/01/2029 (n) | 1,156,000 | 1,148,844 | ||
$4,622,209 | ||||
Conglomerates – 2.4% | ||||
Carrier Global Corp., 2.722%, 2/15/2030 | $ | 918,000 | $ 937,499 | |
Carrier Global Corp., 3.377%, 4/05/2040 | 608,000 | 635,249 | ||
Otis Worldwide Corp., 2.565%, 2/15/2030 | 1,339,000 | 1,358,249 | ||
Westinghouse Air Brake Technologies Corp., 3.2%, 6/15/2025 | 1,501,000 | 1,562,150 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Conglomerates – continued | ||||
Westinghouse Air Brake Technologies Corp., 4.95%, 9/15/2028 | $ | 337,000 | $ 383,071 | |
$4,876,218 | ||||
Consumer Products – 0.8% | ||||
Hasbro, Inc., 3.9%, 11/19/2029 | $ | 783,000 | $ 863,286 | |
Mattel, Inc., 3.75%, 4/01/2029 (n) | 801,000 | 830,036 | ||
$1,693,322 | ||||
Consumer Services – 0.9% | ||||
Booking Holdings, Inc., 3.6%, 6/01/2026 | $ | 1,761,000 | $ 1,898,810 | |
Electrical Equipment – 0.7% | ||||
Arrow Electronics, Inc., 3.875%, 1/12/2028 | $ | 1,261,000 | $ 1,365,432 | |
Electronics – 1.9% | ||||
Broadcom, Inc., 4.3%, 11/15/2032 | $ | 1,056,000 | $ 1,186,707 | |
Broadcom, Inc., 3.469%, 4/15/2034 (n) | 512,000 | 535,895 | ||
Broadcom, Inc., 3.187%, 11/15/2036 (n) | 976,000 | 974,300 | ||
Sensata Technologies, Inc., 4.375%, 2/15/2030 (n) | 1,150,000 | 1,207,500 | ||
$3,904,402 | ||||
Emerging Market Quasi-Sovereign – 0.8% | ||||
Ecopetrol S.A. (Republic of Colombia), 5.375%, 6/26/2026 | $ | 301,000 | $ 317,182 | |
Ecopetrol S.A. (Republic of Colombia), 6.875%, 4/29/2030 | 451,000 | 503,433 | ||
Qatar Petroleum, 3.125%, 7/12/2041 (n) | 781,000 | 789,291 | ||
$1,609,906 | ||||
Emerging Market Sovereign – 0.3% | ||||
United Mexican States, 4.28%, 8/14/2041 | $ | 576,000 | $ 596,880 | |
Energy - Independent – 0.5% | ||||
Diamondback Energy, Inc., 3.125%, 3/24/2031 | $ | 612,000 | $ 630,758 | |
Hess Corp., 5.8%, 4/01/2047 | 297,000 | 379,431 | ||
$1,010,189 | ||||
Energy - Integrated – 1.9% | ||||
Cenovus Energy, Inc., 5.375%, 7/15/2025 | $ | 551,000 | $ 608,042 | |
Cenovus Energy, Inc., 4.4%, 4/15/2029 | 212,000 | 234,551 | ||
Cenovus Energy, Inc., 2.65%, 1/15/2032 | 604,000 | 590,937 | ||
Cenovus Energy, Inc., 3.75%, 2/15/2052 | 143,000 | 143,348 | ||
Eni S.p.A., 4.75%, 9/12/2028 (n) | 761,000 | 876,649 | ||
Eni S.p.A., 4.25%, 5/09/2029 (n) | 940,000 | 1,057,266 | ||
Total Capital International S.A., 3.127%, 5/29/2050 | 437,000 | 447,937 | ||
$3,958,730 | ||||
Entertainment – 0.6% | ||||
Royal Caribbean Cruises Ltd., 4.25%, 7/01/2026 (n) | $ | 1,093,000 | $ 1,058,674 | |
Royal Caribbean Cruises Ltd., 5.5%, 4/01/2028 (n) | 250,000 | 252,890 | ||
$1,311,564 | ||||
Financial Institutions – 2.3% | ||||
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 3.65%, 7/21/2027 | $ | 1,576,000 | $ 1,660,821 | |
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 3.3%, 1/30/2032 | 260,000 | 264,881 | ||
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 3.85%, 10/29/2041 | 207,000 | 215,619 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Financial Institutions – continued | ||||
Avolon Holdings Funding Ltd., 2.125%, 2/21/2026 (n) | $ | 294,000 | $ 288,554 | |
Avolon Holdings Funding Ltd., 4.25%, 4/15/2026 (n) | 243,000 | 257,506 | ||
Avolon Holdings Funding Ltd., 4.375%, 5/01/2026 (n) | 624,000 | 668,341 | ||
Avolon Holdings Funding Ltd., 3.25%, 2/15/2027 (n) | 621,000 | 625,336 | ||
Avolon Holdings Funding Ltd., 2.75%, 2/21/2028 (n) | 841,000 | 825,199 | ||
$4,806,257 | ||||
Food & Beverages – 4.8% | ||||
Anheuser-Busch InBev Worldwide, Inc., 3.5%, 6/01/2030 | $ | 594,000 | $ 651,055 | |
Anheuser-Busch InBev Worldwide, Inc., 4.375%, 4/15/2038 | 527,000 | 617,146 | ||
Anheuser-Busch InBev Worldwide, Inc., 5.55%, 1/23/2049 | 566,000 | 783,037 | ||
Anheuser-Busch InBev Worldwide, Inc., 4.75%, 4/15/2058 | 444,000 | 548,946 | ||
Aramark Services, Inc., 6.375%, 5/01/2025 (n) | 534,000 | 558,030 | ||
Aramark Services, Inc., 5%, 2/01/2028 (n) | 539,000 | 557,191 | ||
Constellation Brands, Inc., 2.25%, 8/01/2031 | 761,000 | 743,776 | ||
Constellation Brands, Inc., 3.75%, 5/01/2050 | 242,000 | 264,323 | ||
Diageo Capital PLC, 2.375%, 10/24/2029 | 1,023,000 | 1,044,733 | ||
JBS USA Lux S.A./JBS USA Finance, Inc., 6.75%, 2/15/2028 (n) | 630,000 | 679,619 | ||
JBS USA Lux S.A./JBS USA Finance, Inc., 6.5%, 4/15/2029 (n) | 714,000 | 785,407 | ||
JBS USA Lux S.A./JBS USA Finance, Inc., 5.5%, 1/15/2030 (n) | 308,000 | 334,950 | ||
JBS USA Lux S.A./JBS USA Finance, Inc., 3.75%, 12/01/2031 (n) | 308,000 | 312,620 | ||
Lamb Weston Holdings, Inc., 4.375%, 1/31/2032 (n) | 1,213,000 | 1,250,930 | ||
SYSCO Corp., 2.4%, 2/15/2030 | 148,000 | 148,434 | ||
SYSCO Corp., 2.45%, 12/14/2031 | 284,000 | 284,353 | ||
SYSCO Corp., 4.45%, 3/15/2048 | 320,000 | 376,533 | ||
$9,941,083 | ||||
Gaming & Lodging – 2.5% | ||||
GLP Capital LP/GLP Financing II, Inc., 5.75%, 6/01/2028 | $ | 932,000 | $ 1,076,124 | |
GLP Capital LP/GLP Financing II, Inc., 3.25%, 1/15/2032 | 389,000 | 391,097 | ||
Hilton Domestic Operating Co., Inc., 4.875%, 1/15/2030 | 485,000 | 518,344 | ||
Hilton Domestic Operating Co., Inc., 3.625%, 2/15/2032 (n) | 588,000 | 584,907 | ||
Las Vegas Sands Corp., 3.9%, 8/08/2029 | 856,000 | 861,968 | ||
Marriott International, Inc., 4%, 4/15/2028 | 1,026,000 | 1,107,166 | ||
Marriott International, Inc., 2.85%, 4/15/2031 | 608,000 | 606,139 | ||
$5,145,745 | ||||
Insurance - Health – 1.3% | ||||
UnitedHealth Group, Inc., 2.3%, 5/15/2031 | $ | 316,000 | $ 321,504 | |
UnitedHealth Group, Inc., 4.625%, 7/15/2035 | 1,690,000 | 2,111,730 | ||
UnitedHealth Group, Inc., 3.25%, 5/15/2051 | 287,000 | 310,485 | ||
$2,743,719 | ||||
Insurance - Property & Casualty – 1.4% | ||||
Aon Corp., 3.75%, 5/02/2029 | $ | 1,376,000 | $ 1,508,383 | |
Aon Corp./Aon Global Holdings PLC, 2.6%, 12/02/2031 | 111,000 | 112,930 | ||
Fairfax Financial Holdings Ltd., 3.375%, 3/03/2031 | 347,000 | 357,171 | ||
Hartford Financial Services Group, Inc., 3.6%, 8/19/2049 | 585,000 | 640,309 | ||
Marsh & McLennan Cos., Inc., 2.375%, 12/15/2031 | 284,000 | 286,695 | ||
$2,905,488 | ||||
International Market Quasi-Sovereign – 0.3% | ||||
Ontario Teachers' Cadillac Fairview Properties, 2.5%, 10/15/2031 (n) | $ | 699,000 | $ 695,765 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Machinery & Tools – 0.9% | ||||
CNH Industrial Capital LLC, 4.2%, 1/15/2024 | $ | 515,000 | $ 543,559 | |
CNH Industrial Capital LLC, 1.875%, 1/15/2026 | 288,000 | 288,123 | ||
CNH Industrial Capital LLC, 3.85%, 11/15/2027 | 905,000 | 985,141 | ||
$1,816,823 | ||||
Major Banks – 15.8% | ||||
Australia and New Zealand Banking Group Ltd., 2.57%, 11/25/2035 (n) | $ | 827,000 | $ 791,865 | |
Bank of America Corp., 3.5%, 4/19/2026 | 2,000,000 | 2,154,376 | ||
Bank of America Corp., 3.419% to 12/20/2027, FLR (LIBOR - 3mo. + 1.04%) to 12/20/2028 | 351,000 | 374,750 | ||
Bank of America Corp., 2.676% to 6/19/2040, FLR (SOFR + 1.93%) to 6/19/2041 | 721,000 | 694,012 | ||
Bank of America Corp., 3.311% to 4/22/2041, FLR (SOFR + 1.58%) to 4/22/2042 | 1,498,000 | 1,574,428 | ||
Barclays PLC, 2.894% to 11/24/2031, FLR (CMT - 1yr. + 1.3%) to 11/24/2032 | 1,022,000 | 1,029,240 | ||
Commonwealth Bank of Australia, 3.61% to 9/12/2029, FLR (CMT - 1yr. + 2.05%) to 9/12/2034 (n) | 431,000 | 450,614 | ||
Commonwealth Bank of Australia, 3.305%, 3/11/2041 (n) | 849,000 | 865,470 | ||
Credit Agricole S.A., 1.247% to 1/26/2026, FLR (SOFR + 0.89162%) to 1/26/2027 (n) | 447,000 | 434,958 | ||
Credit Suisse Group AG, 4.194% to 4/01/2030, FLR (SOFR + 3.73%) to 4/01/2031 (n) | 694,000 | 765,370 | ||
Credit Suisse Group AG, 3.091% to 5/14/2031, FLR (SOFR + 1.73%) to 5/14/2032 (n) | 250,000 | 254,388 | ||
Goldman Sachs Group, Inc., 2.6%, 2/07/2030 | 339,000 | 344,677 | ||
Goldman Sachs Group, Inc., 2.65% to 10/21/2031, FLR (SOFR + 1.264%) to 10/21/2032 | 1,188,000 | 1,195,433 | ||
Goldman Sachs Group, Inc., 2.908%, 7/21/2042 | 1,142,000 | 1,135,380 | ||
HSBC Holdings PLC, 2.357% to 8/18/2030, FLR (SOFR + 1.947%) to 8/18/2031 | 1,345,000 | 1,314,057 | ||
HSBC Holdings PLC, 5.25%, 3/14/2044 | 293,000 | 382,193 | ||
JPMorgan Chase & Co., 3.125%, 1/23/2025 | 688,000 | 722,419 | ||
JPMorgan Chase & Co., 3.54%, 5/01/2028 | 1,709,000 | 1,856,032 | ||
JPMorgan Chase & Co., 2.545% to 11/08/2031, FLR (SOFR + 1.18%) to 11/08/2032 | 899,000 | 904,054 | ||
JPMorgan Chase & Co., 3.897% to 1/23/2048, FLR (LIBOR - 3mo. + 1.22%) to 1/23/2049 | 1,111,000 | 1,287,083 | ||
Mitsubishi UFJ Financial Group, Inc., 1.64% to 10/13/2026, FLR (CMT - 1yr. + 0.67%) to 10/13/2027 | 423,000 | 417,473 | ||
Mitsubishi UFJ Financial Group, Inc., 2.494% to 10/13/2031, FLR (CMT - 1yr. + 0.97%) to 10/13/2032 | 532,000 | 532,657 | ||
Morgan Stanley, 4.431% to 1/23/2029, FLR (LIBOR - 3mo. + 1.63%) to 1/23/2030 | 439,000 | 500,266 | ||
Morgan Stanley, 2.699% to 1/22/2030, FLR (SOFR + 1.143%) to 1/22/2031 | 2,000,000 | 2,046,169 | ||
Morgan Stanley, 3.622% to 4/01/2030, FLR (SOFR + 3.12%) to 4/01/2031 | 2,049,000 | 2,232,781 | ||
Morgan Stanley, 3.217% to 4/22/2041, FLR (SOFR + 1.485%) to 4/22/2042 | 459,000 | 480,871 | ||
Nordea Bank Abp, 1.5%, 9/30/2026 (n) | 1,448,000 | 1,423,000 | ||
Royal Bank of Canada, 2.3%, 11/03/2031 | 1,541,000 | 1,548,177 | ||
Sumitomo Mitsui Financial Group, Inc., 1.71%, 1/12/2031 | 1,054,000 | 992,582 | ||
Toronto Dominion Bank, 1.25%, 9/10/2026 | 712,000 | 699,510 | ||
Toronto Dominion Bank, 2%, 9/10/2031 | 1,423,000 | 1,402,641 | ||
UBS Group AG, 3.126% to 8/13/2029, FLR (LIBOR - 3mo. + 1.468%) to 8/13/2030 (n) | 454,000 | 474,535 | ||
UBS Group AG, 4.375% to 2/10/2031, FLR (CMT - 1yr. + 3.313%) to 8/10/2069 (n) | 961,000 | 949,276 | ||
UniCredit S.p.A., 2.569% to 9/22/2025, FLR (CMT - 1yr. + 2.3%) to 9/22/2026 (n) | 350,000 | 349,322 | ||
$32,580,059 | ||||
Medical & Health Technology & Services – 3.1% | ||||
Alcon, Inc., 2.6%, 5/27/2030 (n) | $ | 1,215,000 | $ 1,226,123 | |
Alcon, Inc., 3.8%, 9/23/2049 (n) | 492,000 | 547,843 | ||
Becton, Dickinson and Co., 3.734%, 12/15/2024 | 44,000 | 46,769 | ||
Becton, Dickinson and Co., 4.685%, 12/15/2044 | 847,000 | 1,066,444 | ||
Becton, Dickinson and Co., 4.669%, 6/06/2047 | 111,000 | 139,952 | ||
HCA, Inc., 5.25%, 6/15/2026 | 978,000 | 1,099,834 | ||
HCA, Inc., 5.875%, 2/01/2029 | 807,000 | 961,581 | ||
HCA, Inc., 3.5%, 9/01/2030 | 122,000 | 128,939 | ||
HCA, Inc., 5.125%, 6/15/2039 | 207,000 | 254,927 | ||
Thermo Fisher Scientific, Inc., 2.8%, 10/15/2041 | 847,000 | 856,828 | ||
$6,329,240 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Medical Equipment – 1.1% | ||||
Boston Scientific Corp., 3.75%, 3/01/2026 | $ | 548,000 | $ 588,693 | |
Boston Scientific Corp., 2.65%, 6/01/2030 | 339,000 | 345,580 | ||
Danaher Corp., 2.6%, 10/01/2050 | 957,000 | 912,215 | ||
Teleflex, Inc., 4.625%, 11/15/2027 | 125,000 | 130,000 | ||
Teleflex, Inc., 4.25%, 6/01/2028 (n) | 191,000 | 196,767 | ||
$2,173,255 | ||||
Metals & Mining – 2.4% | ||||
Anglo American Capital PLC, 2.25%, 3/17/2028 (n) | $ | 389,000 | $ 382,011 | |
Anglo American Capital PLC, 2.625%, 9/10/2030 (n) | 827,000 | 810,923 | ||
Anglo American Capital PLC, 2.875%, 3/17/2031 (n) | 454,000 | 451,859 | ||
ArcelorMittal S.A., 4.25%, 7/16/2029 | 431,000 | 471,915 | ||
FMG Resources Ltd., 4.375%, 4/01/2031 (n) | 1,110,000 | 1,165,500 | ||
Glencore Funding LLC, 2.5%, 9/01/2030 (n) | 293,000 | 283,748 | ||
Glencore Funding LLC, 2.85%, 4/27/2031 (n) | 611,000 | 603,960 | ||
Novelis Corp., 4.75%, 1/30/2030 (n) | 781,000 | 821,026 | ||
$4,990,942 | ||||
Midstream – 3.6% | ||||
Cheniere Corpus Christi Holdings LLC, 3.7%, 11/15/2029 | $ | 512,000 | $ 548,432 | |
DT Midstream, Inc., 4.125%, 6/15/2029 (n) | 461,000 | 471,949 | ||
DT Midstream, Inc., 4.375%, 6/15/2031 (n) | 461,000 | 479,440 | ||
Energy Transfer LP, 4%, 10/01/2027 | 285,000 | 306,009 | ||
Energy Transfer LP, 3.75%, 5/15/2030 | 307,000 | 325,314 | ||
Energy Transfer Operating Co., 5%, 5/15/2050 | 409,000 | 470,635 | ||
Galaxy Pipeline Assets Bidco Ltd., 1.75%, 9/30/2027 (n) | 1,335,857 | 1,337,287 | ||
Galaxy Pipeline Assets Bidco Ltd., 2.16%, 3/31/2034 (n) | 489,000 | 479,279 | ||
Plains All American Pipeline, 4.9%, 2/15/2045 | 309,000 | 335,339 | ||
Plains All American Pipeline LP/PAA Finance Corp., 4.65%, 10/15/2025 | 301,000 | 328,298 | ||
Plains All American Pipeline LP/PAA Finance Corp., 3.55%, 12/15/2029 | 476,000 | 493,101 | ||
Sabine Pass Liquefaction LLC, 5.625%, 3/01/2025 | 133,000 | 147,660 | ||
Sabine Pass Liquefaction LLC, 5.875%, 6/30/2026 | 289,000 | 331,571 | ||
Sabine Pass Liquefaction LLC, 4.2%, 3/15/2028 | 1,021,000 | 1,118,374 | ||
Sabine Pass Liquefaction LLC, 4.5%, 5/15/2030 | 203,000 | 228,989 | ||
$7,401,677 | ||||
Municipals – 1.8% | ||||
Florida State Board of Administration Finance Corp. Rev., “A”, 1.705%, 7/01/2027 | $ | 1,146,000 | $ 1,143,137 | |
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “B”, 2.746%, 6/01/2034 | 340,000 | 342,025 | ||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “B”, 3%, 6/01/2046 | 330,000 | 338,037 | ||
New Jersey Economic Development Authority State Pension Funding Rev., “A”, NPFG, 7.425%, 2/15/2029 | 1,500,000 | 1,885,248 | ||
$3,708,447 | ||||
Natural Gas - Distribution – 1.1% | ||||
NiSource, Inc., 5.65%, 2/01/2045 | $ | 284,000 | $ 383,506 | |
Sempra Energy, 3.25%, 6/15/2027 | 1,787,000 | 1,884,793 | ||
$2,268,299 | ||||
Natural Gas - Pipeline – 0.8% | ||||
APT Pipelines Ltd., 5%, 3/23/2035 (n) | $ | 1,375,000 | $ 1,664,763 | |
Network & Telecom – 2.0% | ||||
AT&T, Inc., 3.3%, 2/01/2052 | $ | 545,000 | $ 533,712 | |
AT&T, Inc., 3.55%, 9/15/2055 | 728,000 | 730,642 | ||
Verizon Communications, Inc., 2.1%, 3/22/2028 | 159,000 | 159,303 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Network & Telecom – continued | ||||
Verizon Communications, Inc., 3.15%, 3/22/2030 | $ | 310,000 | $ 327,965 | |
Verizon Communications, Inc., 2.55%, 3/21/2031 | 1,767,000 | 1,782,749 | ||
Verizon Communications, Inc., 3.4%, 3/22/2041 | 580,000 | 607,227 | ||
$4,141,598 | ||||
Oils – 0.6% | ||||
Puma International Financing S.A., 5%, 1/24/2026 | $ | 604,000 | $ 604,000 | |
Valero Energy Corp., 2.8%, 12/01/2031 | 722,000 | 719,747 | ||
$1,323,747 | ||||
Other Banks & Diversified Financials – 0.6% | ||||
Groupe BPCE S.A., 4.5%, 3/15/2025 (n) | $ | 760,000 | $ 818,938 | |
Mizrahi Tefahot Bank Ltd., 3.077% to 4/07/2026, FLR (CMT - 5yr. + 2.25%) to 4/07/2031 (n) | 416,000 | 412,880 | ||
$1,231,818 | ||||
Personal Computers & Peripherals – 0.9% | ||||
Equifax, Inc., 3.1%, 5/15/2030 | $ | 502,000 | $ 525,433 | |
Equifax, Inc., 2.35%, 9/15/2031 | 1,449,000 | 1,429,359 | ||
$1,954,792 | ||||
Railroad & Shipping – 0.2% | ||||
Canadian Pacific Railway Co., 3%, 12/02/2041 | $ | 192,000 | $ 196,333 | |
Canadian Pacific Railway Co., 3.1%, 12/02/2051 | 285,000 | 293,072 | ||
$489,405 | ||||
Real Estate - Apartment – 0.7% | ||||
American Homes 4 Rent, L.P., 2.375%, 7/15/2031 | $ | 677,000 | $ 663,484 | |
American Homes 4 Rent, L.P., 3.375%, 7/15/2051 | 674,000 | 676,613 | ||
$1,340,097 | ||||
Real Estate - Office – 0.7% | ||||
Corporate Office Property LP, REIT, 2%, 1/15/2029 | $ | 790,000 | $ 759,531 | |
Corporate Office Property LP, REIT, 2.75%, 4/15/2031 | 594,000 | 590,596 | ||
$1,350,127 | ||||
Real Estate - Other – 1.0% | ||||
EPR Properties, REIT, 3.6%, 11/15/2031 | $ | 447,000 | $ 442,236 | |
Lexington Realty Trust Co., 2.375%, 10/01/2031 | 865,000 | 829,697 | ||
W.P. Carey, Inc., 2.45%, 2/01/2032 | 745,000 | 726,506 | ||
$1,998,439 | ||||
Real Estate - Retail – 1.3% | ||||
Brixmor Operating Partnership LP, REIT, 4.125%, 5/15/2029 | $ | 114,000 | $ 126,293 | |
Brixmor Operating Partnership LP, REIT, 4.05%, 7/01/2030 | 418,000 | 456,114 | ||
Brixmor Operating Partnership LP, REIT, 2.5%, 8/16/2031 | 586,000 | 573,452 | ||
Spirit Realty, LP, 4.45%, 9/15/2026 | 303,000 | 333,324 | ||
Spirit Realty, LP, 3.2%, 2/15/2031 | 368,000 | 380,319 | ||
STORE Capital Corp., REIT, 4.625%, 3/15/2029 | 179,000 | 200,530 | ||
STORE Capital Corp., REIT, 2.7%, 12/01/2031 | 709,000 | 693,305 | ||
$2,763,337 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Retailers – 2.7% | ||||
Alimentation Couche-Tard, Inc., 3.8%, 1/25/2050 (n) | $ | 910,000 | $ 984,409 | |
Home Depot, Inc., 3.3%, 4/15/2040 | 1,070,000 | 1,160,069 | ||
Home Depot, Inc., 4.875%, 2/15/2044 | 760,000 | 1,002,205 | ||
Kohl's Corp., 3.375%, 5/01/2031 | 827,000 | 842,237 | ||
MercadoLibre, Inc., 3.125%, 1/14/2031 | 790,000 | 746,558 | ||
Nordstrom, Inc., 4.25%, 8/01/2031 | 605,000 | 594,415 | ||
Nordstrom, Inc., 5%, 1/15/2044 | 288,000 | 268,560 | ||
$5,598,453 | ||||
Telecommunications - Wireless – 3.8% | ||||
American Tower Corp., REIT, 3.6%, 1/15/2028 | $ | 1,133,000 | $ 1,220,578 | |
American Tower Corp., REIT, 3.8%, 8/15/2029 | 553,000 | 601,612 | ||
American Tower Corp., REIT, 2.95%, 1/15/2051 | 700,000 | 663,050 | ||
Cellnex Finance Co. S.A., 3.875%, 7/07/2041 (n) | 793,000 | 758,362 | ||
Crown Castle International Corp., 4.45%, 2/15/2026 | 338,000 | 369,922 | ||
Crown Castle International Corp., 3.7%, 6/15/2026 | 533,000 | 571,216 | ||
Millicom International Cellular S.A., 4.5%, 4/27/2031 (n) | 556,000 | 560,176 | ||
T-Mobile USA, Inc., 2.625%, 4/15/2026 | 597,000 | 599,985 | ||
T-Mobile USA, Inc., 2.05%, 2/15/2028 | 795,000 | 789,123 | ||
T-Mobile USA, Inc., 4.5%, 4/15/2050 | 613,000 | 717,457 | ||
Vodafone Group PLC, 4.125% to 6/04/2031, FLR (CMT - 1yr. + 2.767%) to 6/04/2051, FLR (CMT - 1yr. + 3.517%) to 6/04/2081 | 1,064,000 | 1,053,317 | ||
$7,904,798 | ||||
Transportation - Services – 0.4% | ||||
ERAC USA Finance LLC, 7%, 10/15/2037 (n) | $ | 421,000 | $ 620,223 | |
ERAC USA Finance LLC, 4.5%, 2/15/2045 (n) | 201,000 | 243,026 | ||
$863,249 | ||||
Utilities - Electric Power – 6.2% | ||||
American Transmission Systems, Inc., 2.65%, 1/15/2032 (n) | $ | 181,000 | $ 182,681 | |
Berkshire Hathaway Energy Co., 4.5%, 2/01/2045 | 597,000 | 722,911 | ||
Berkshire Hathaway Energy Co., 4.25%, 10/15/2050 | 195,000 | 238,209 | ||
CenterPoint Energy, Inc., 2.65%, 6/01/2031 | 613,000 | 621,308 | ||
Dominion Energy, Inc., 2.25%, 8/15/2031 | 838,000 | 818,402 | ||
Duke Energy Corp., 3.3%, 6/15/2041 | 310,000 | 314,631 | ||
Duke Energy Corp., 3.75%, 9/01/2046 | 814,000 | 868,453 | ||
Enel Finance International N.V., 4.75%, 5/25/2047 (n) | 460,000 | 564,164 | ||
Evergy, Inc., 2.9%, 9/15/2029 | 1,510,000 | 1,545,585 | ||
FirstEnergy Corp., 4.4%, 7/15/2027 | 707,000 | 761,465 | ||
FirstEnergy Corp., 3.4%, 3/01/2050 | 587,000 | 575,260 | ||
Florida Power & Light Co., 2.85%, 4/01/2025 | 287,000 | 299,693 | ||
Florida Power & Light Co., 3.95%, 3/01/2048 | 287,000 | 340,352 | ||
Jersey Central Power & Light Co., 2.75%, 3/01/2032 (n) | 614,000 | 622,229 | ||
NextEra Energy Capital Holdings, Inc., 3.8%, 3/15/2082 | 551,000 | 560,553 | ||
Pacific Gas & Electric Co., 2.1%, 8/01/2027 | 544,000 | 525,201 | ||
Pacific Gas & Electric Co., 2.5%, 2/01/2031 | 1,043,000 | 993,521 | ||
Pacific Gas & Electric Co., 4.95%, 7/01/2050 | 307,000 | 334,340 | ||
Southern California Edison Co., 4.5%, 9/01/2040 | 273,000 | 308,024 | ||
Southern California Edison Co., 3.65%, 2/01/2050 | 795,000 | 841,219 | ||
Southern California Edison Co., 2.95%, 2/01/2051 | 288,000 | 274,227 | ||
Virginia Electric & Power Co., 2.875%, 7/15/2029 | 579,000 | 607,234 | ||
$12,919,662 | ||||
Total Bonds (Identified Cost, $195,918,931) | $ 202,018,999 |
Issuer | Shares/Par | Value ($) | ||
Investment Companies (h) – 1.4% | ||||
Money Market Funds – 1.4% | ||||
MFS Institutional Money Market Portfolio, 0.07% (v) (Identified Cost, $2,827,617) | 2,827,617 | $ 2,827,617 | ||
Other Assets, Less Liabilities – 0.9% | 1,939,504 | |||
Net Assets – 100.0% | $ 206,786,120 |
(f) | All or a portion of the security has been segregated as collateral for open futures contracts. | |||
(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 $2,827,617 and $202,018,999, respectively. | |||
(i) | Interest only security for which the fund receives interest on notional principal (Par amount). Par amount shown is the notional principal and does not reflect the cost of the security. | |||
(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 $52,843,908, representing 25.6% of net assets. | |||
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
The following abbreviations are used in this report and are defined: | |
CMT | Constant Maturity Treasury |
FLR | Floating Rate. Interest rate resets periodically based on the parenthetically disclosed reference rate plus a spread (if any). The period-end rate reported may not be the current rate. All reference rates are USD unless otherwise noted. |
LIBOR | London Interbank Offered Rate |
NPFG | National Public Finance Guarantee Corp. |
REIT | Real Estate Investment Trust |
SOFR | Secured Overnight Financing Rate |
Derivative Contracts at 12/31/21 | ||||||
Futures Contracts | ||||||
Description | Long/ Short | Currency | Contracts | Notional Amount | Expiration Date | Value/Unrealized Appreciation (Depreciation) |
Asset Derivatives | ||||||
Interest Rate Futures | ||||||
U.S. Treasury Note 5 yr | Long | USD | 58 | $7,016,641 | March – 2022 | $27,157 |
Liability Derivatives | ||||||
Interest Rate Futures | ||||||
U.S. Treasury Note 2 yr | Long | USD | 98 | $21,380,844 | March – 2022 | $(7,204) |
U.S. Treasury Ultra Note 10 yr | Short | USD | 158 | 23,137,125 | March – 2022 | (433,370) |
$(440,574) |
Financial Statements | Statement of Assets and Liabilities |
At 12/31/21Assets | |
Investments in unaffiliated issuers, at value (identified cost, $195,918,931) | $202,018,999 |
Investments in affiliated issuers, at value (identified cost, $2,827,617) | 2,827,617 |
Receivables for | |
Fund shares sold | 407,713 |
Interest | 1,795,252 |
Receivable from investment adviser | 4,039 |
Other assets | 1,204 |
Total assets | $207,054,824 |
Liabilities | |
Payables for | |
Net daily variation margin on open futures contracts | $33,250 |
Fund shares reacquired | 153,391 |
Payable to affiliates | |
Administrative services fee | 210 |
Shareholder servicing costs | 52 |
Distribution and/or service fees | 2,101 |
Payable for independent Trustees' compensation | 182 |
Accrued expenses and other liabilities | 79,518 |
Total liabilities | $268,704 |
Net assets | $206,786,120 |
Net assets consist of | |
Paid-in capital | $186,608,984 |
Total distributable earnings (loss) | 20,177,136 |
Net assets | $206,786,120 |
Shares of beneficial interest outstanding | 17,519,852 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $53,206,192 | 4,458,458 | $11.93 |
Service Class | 153,579,928 | 13,061,394 | 11.76 |
Financial Statements | Statement of Operations |
Year ended 12/31/21 | |
Net investment income (loss) | |
Income | |
Interest | $6,771,512 |
Dividends from affiliated issuers | 2,836 |
Other | 2,103 |
Total investment income | $6,776,451 |
Expenses | |
Management fee | $1,296,512 |
Distribution and/or service fees | 403,627 |
Shareholder servicing costs | 8,689 |
Administrative services fee | 39,004 |
Independent Trustees' compensation | 5,253 |
Custodian fee | 16,085 |
Shareholder communications | 13,387 |
Audit and tax fees | 77,970 |
Legal fees | 1,034 |
Miscellaneous | 32,298 |
Total expenses | $1,893,859 |
Reduction of expenses by investment adviser | (128,066) |
Net expenses | $1,765,793 |
Net investment income (loss) | $5,010,658 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $9,872,180 |
Futures contracts | (141,684) |
Net realized gain (loss) | $9,730,496 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $(17,879,391) |
Futures contracts | (359,353) |
Net unrealized gain (loss) | $(18,238,744) |
Net realized and unrealized gain (loss) | $(8,508,248) |
Change in net assets from operations | $(3,497,590) |
Financial Statements | Statements of Changes in Net Assets |
Year ended | ||
12/31/21 | 12/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $5,010,658 | $5,813,824 |
Net realized gain (loss) | 9,730,496 | 4,504,182 |
Net unrealized gain (loss) | (18,238,744) | 9,420,324 |
Change in net assets from operations | $(3,497,590) | $19,738,330 |
Total distributions to shareholders | $(10,100,201) | $(7,693,047) |
Change in net assets from fund share transactions | $(7,988,584) | $(3,220,009) |
Total change in net assets | $(21,586,375) | $8,825,274 |
Net assets | ||
At beginning of period | 228,372,495 | 219,547,221 |
At end of period | $206,786,120 | $228,372,495 |
Financial Statements | Financial Highlights |
Initial Class | Year ended | ||||
12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $12.71 | $11.94 | $10.81 | $11.64 | $11.36 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.31 | $0.36 | $0.39 | $0.38 | $0.39 |
Net realized and unrealized gain (loss) | (0.49) | 0.89 | 1.19 | (0.72) | 0.33 |
Total from investment operations | $(0.18) | $1.25 | $1.58 | $(0.34) | $0.72 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.36) | $(0.44) | $(0.45) | $(0.44) | $(0.44) |
From net realized gain | (0.24) | (0.04) | — | (0.05) | — |
Total distributions declared to shareholders | $(0.60) | $(0.48) | $(0.45) | $(0.49) | $(0.44) |
Net asset value, end of period (x) | $11.93 | $12.71 | $11.94 | $10.81 | $11.64 |
Total return (%) (k)(r)(s)(x) | (1.40) | 10.57 | 14.65 | (3.00) | 6.39 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.69 | 0.70 | 0.69 | 0.68 | 0.68 |
Expenses after expense reductions | 0.63 | 0.63 | 0.63 | 0.63 | 0.63 |
Net investment income (loss) | 2.51 | 2.90 | 3.33 | 3.44 | 3.37 |
Portfolio turnover | 55 | 41 | 34 | 32 | 36 |
Net assets at end of period (000 omitted) | $53,206 | $59,133 | $57,714 | $56,506 | $65,445 |
Service Class | Year ended | ||||
12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $12.54 | $11.78 | $10.66 | $11.49 | $11.22 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.27 | $0.32 | $0.35 | $0.35 | $0.36 |
Net realized and unrealized gain (loss) | (0.48) | 0.89 | 1.19 | (0.72) | 0.32 |
Total from investment operations | $(0.21) | $1.21 | $1.54 | $(0.37) | $0.68 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.33) | $(0.41) | $(0.42) | $(0.41) | $(0.41) |
From net realized gain | (0.24) | (0.04) | — | (0.05) | — |
Total distributions declared to shareholders | $(0.57) | $(0.45) | $(0.42) | $(0.46) | $(0.41) |
Net asset value, end of period (x) | $11.76 | $12.54 | $11.78 | $10.66 | $11.49 |
Total return (%) (k)(r)(s)(x) | (1.66) | 10.34 | 14.46 | (3.31) | 6.11 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.94 | 0.95 | 0.94 | 0.93 | 0.93 |
Expenses after expense reductions | 0.88 | 0.88 | 0.88 | 0.88 | 0.88 |
Net investment income (loss) | 2.26 | 2.65 | 3.08 | 3.18 | 3.12 |
Portfolio turnover | 55 | 41 | 34 | 32 | 36 |
Net assets at end of period (000 omitted) | $153,580 | $169,239 | $161,833 | $154,370 | $194,337 |
(d) | Per share data is based on average shares outstanding. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(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 |
Non - U.S. Sovereign Debt | $— | $2,902,551 | $— | $2,902,551 |
Municipal Bonds | — | 3,708,447 | — | 3,708,447 |
U.S. Corporate Bonds | — | 141,364,464 | — | 141,364,464 |
Commercial Mortgage-Backed Securities | — | 2,853,719 | — | 2,853,719 |
Asset-Backed Securities (including CDOs) | — | 679,625 | — | 679,625 |
Foreign Bonds | — | 50,510,193 | — | 50,510,193 |
Mutual Funds | 2,827,617 | — | — | 2,827,617 |
Total | $2,827,617 | $202,018,999 | $— | $204,846,616 |
Other Financial Instruments | ||||
Futures Contracts – Assets | $27,157 | $— | $— | $27,157 |
Futures Contracts – Liabilities | (440,574) | — | — | (440,574) |
Fair Value (a) | |||
Risk | Derivative Contracts | Asset Derivatives | Liability Derivatives |
Interest Rate | Futures Contracts | $27,157 | $(440,574) |
Risk | Futures Contracts |
Interest Rate | $(141,684) |
Risk | Futures Contracts |
Interest Rate | $(359,353) |
Year ended 12/31/21 | Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $5,901,029 | $7,393,039 |
Long-term capital gains | 4,199,172 | 300,008 |
Total distributions | $10,100,201 | $7,693,047 |
As of 12/31/21 | |
Cost of investments | $198,691,851 |
Gross appreciation | 7,640,118 |
Gross depreciation | (1,898,770) |
Net unrealized appreciation (depreciation) | $5,741,348 |
Undistributed ordinary income | 5,478,404 |
Undistributed long-term capital gain | 8,957,384 |
Total distributable earnings (loss) | $20,177,136 |
Year ended 12/31/21 | Year ended 12/31/20 | ||
Initial Class | $2,631,294 | $2,184,264 | |
Service Class | 7,468,907 | 5,508,783 | |
Total | $10,100,201 | $7,693,047 |
Up to $1 billion | 0.60% |
In excess of $1 billion | 0.50% |
Purchases | Sales | |
U.S. Government securities | $— | $2,619,860 |
Non-U.S. Government securities | 115,969,795 | 124,938,499 |
Year ended 12/31/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 353,381 | $4,334,640 | 512,275 | $6,356,882 | |
Service Class | 1,492,051 | 17,814,591 | 2,413,646 | 29,610,213 | |
1,845,432 | $22,149,231 | 2,925,921 | $35,967,095 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | 218,910 | $2,631,294 | 177,294 | $2,184,264 | |
Service Class | 630,288 | 7,468,907 | 453,025 | 5,508,783 | |
849,198 | $10,100,201 | 630,319 | $7,693,047 | ||
Shares reacquired | |||||
Initial Class | (764,833) | $(9,381,834) | (873,200) | $(10,710,012) | |
Service Class | (2,560,611) | (30,856,182) | (3,109,400) | (36,170,139) | |
(3,325,444) | $(40,238,016) | (3,982,600) | $(46,880,151) | ||
Net change | |||||
Initial Class | (192,542) | $(2,415,900) | (183,631) | $(2,168,866) | |
Service Class | (438,272) | (5,572,684) | (242,729) | (1,051,143) | |
(630,814) | $(7,988,584) | (426,360) | $(3,220,009) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $4,930,371 | $93,735,425 | $95,838,179 | $— | $— | $2,827,617 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $2,836 | $— |
February 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 | 135 | 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 | 135 | Private investor | N/A | |||||
Steven E. Buller (age 70) | Trustee | February 2014 | 135 | Private investor | N/A | |||||
John A. Caroselli (age 67) | Trustee | March 2017 | 135 | Private investor; JC Global Advisors, LLC (management consulting), President (since 2015) | N/A | |||||
Maureen R. Goldfarb (age 66) | Trustee | January 2009 | 135 | Private investor | N/A | |||||
Peter D. Jones (age 66) | Trustee | January 2019 | 135 | Private investor | N/A | |||||
James W. Kilman, Jr. (age 60) | Trustee | January 2019 | 135 | 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) | |||||
Clarence Otis, Jr. (age 65) | Trustee | March 2017 | 135 | Private investor | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director | |||||
Maryanne L. Roepke (age 65) | Trustee | May 2014 | 135 | Private investor | N/A | |||||
Laurie J. Thomsen (age 64) | Trustee | March 2005 | 135 | 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 | 135 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | ||||
Kino Clark (k) (age 53) | Assistant Treasurer | January 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
John W. Clark, Jr. (k) (age 54) | Assistant Treasurer | April 2017 | 135 | Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head - Treasurer's Office (until February 2017) | ||||
Thomas H. Connors (k) (age 62) | Assistant Secretary and Assistant Clerk | September 2012 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
David L. DiLorenzo (k) (age 53) | President | July 2005 | 135 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 54) | Secretary and Clerk | April 2017 | 135 | 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 48) | Assistant Secretary and Assistant Clerk | June 2006 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
Amanda S. Mooradian (k) (age 42) | Assistant Secretary and Assistant Clerk | September 2018 | 135 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 51) | Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Kasey L. Phillips (k) (age 51) | Assistant Treasurer | September 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 47) | Assistant Secretary and Assistant Clerk | October 2014 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Martin J. Wolin (k) (age 54) | Chief Compliance Officer | July 2015 | 135 | Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer | ||||
James O. Yost (k) (age 61) | Treasurer | September 1990 | 135 | 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 | Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 |
Portfolio Manager(s) | |
Alexander Mackey Henry Peabody |
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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Apple, Inc. | 6.5% |
Microsoft Corp. | 6.2% |
Alphabet, Inc., “A” | 4.1% |
Amazon.com, Inc. | 3.6% |
Meta Platforms, Inc., “A” | 1.8% |
JPMorgan Chase & Co. | 1.6% |
Home Depot, Inc. | 1.5% |
Visa, Inc., “A” | 1.5% |
Johnson & Johnson | 1.4% |
Adobe Systems, Inc. | 1.3% |
Technology | 33.6% |
Health Care (s) | 14.0% |
Financial Services | 13.8% |
Capital Goods | 13.4% |
Consumer Cyclicals | 12.4% |
Energy | 5.4% |
Consumer Staples | 4.2% |
Telecommunications and Cable Television (s) | 2.3% |
(k) | The sectors set forth above and the associated portfolio composition are based on MFS’ own custom sector classification methodology. |
(s) | Includes securities sold short. |
(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 | 10-yr |
Initial Class | 5/12/97 | 25.31% | 18.92% | 16.53% |
Service Class | 8/24/01 | 25.05% | 18.63% | 16.25% |
Russell 3000® Index (f) | 25.66% | 17.97% | 16.30% |
(f) | Source: FactSet Research Systems Inc. |
(h) | Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and/or Russell ratings or underlying data and no party may rely on any Russell Indexes and/or Russell ratings and/or underlying data contained in this document. No further distribution of Russell Data is permitted without Russell's express written consent. Russell does not promote, sponsor, or endorse the content of this document. |
July 1, 2021 through December 31, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 7/01/21 | Ending Account Value 12/31/21 | Expenses Paid During Period (p) 7/01/21-12/31/21 | |
Initial Class | Actual | 0.83% | $1,000.00 | $1,091.78 | $4.38 |
Hypothetical (h) | 0.83% | $1,000.00 | $1,021.02 | $4.23 | |
Service Class | Actual | 1.08% | $1,000.00 | $1,090.36 | $5.69 |
Hypothetical (h) | 1.08% | $1,000.00 | $1,019.76 | $5.50 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 99.5% | ||||
Aerospace & Defense – 2.3% | ||||
CACI International, Inc., “A” (a) | 985 | $ 265,172 | ||
Curtiss-Wright Corp. | 3,359 | 465,793 | ||
Honeywell International, Inc. | 8,446 | 1,761,075 | ||
Howmet Aerospace, Inc. | 22,673 | 721,682 | ||
L3Harris Technologies, Inc. | 2,784 | 593,660 | ||
Leidos Holdings, Inc. | 2,990 | 265,811 | ||
Northrop Grumman Corp. | 1,535 | 594,152 | ||
Parsons Corp. (a) | 6,303 | 212,096 | ||
Raytheon Technologies Corp. | 17,862 | 1,537,204 | ||
$6,416,645 | ||||
Alcoholic Beverages – 0.3% | ||||
Constellation Brands, Inc., “A” | 3,129 | $ 785,285 | ||
Apparel Manufacturers – 0.6% | ||||
NIKE, Inc., “B” | 5,548 | $ 924,685 | ||
Skechers USA, Inc., “A” (a) | 17,842 | 774,343 | ||
$1,699,028 | ||||
Automotive – 1.3% | ||||
Aptiv PLC (a) | 6,624 | $ 1,092,629 | ||
LKQ Corp. | 32,981 | 1,979,850 | ||
Magna International, Inc. | 6,127 | 495,919 | ||
$3,568,398 | ||||
Biotechnology – 1.3% | ||||
Adaptive Biotechnologies Corp. (a) | 6,406 | $ 179,752 | ||
Biogen, Inc. (a) | 3,727 | 894,182 | ||
Illumina, Inc. (a) | 1,339 | 509,409 | ||
Oxford Nanopore Technologies PLC (a) | 16,248 | 153,508 | ||
Vertex Pharmaceuticals, Inc. (a) | 9,034 | 1,983,866 | ||
$3,720,717 | ||||
Broadcasting – 1.2% | ||||
Discovery Communications, Inc., “C” (a) | 26,956 | $ 617,293 | ||
Walt Disney Co. (a) | 17,253 | 2,672,317 | ||
$3,289,610 | ||||
Brokerage & Asset Managers – 1.6% | ||||
Charles Schwab Corp. | 15,011 | $ 1,262,425 | ||
CME Group, Inc. | 4,796 | 1,095,694 | ||
Invesco Ltd. | 48,639 | 1,119,670 | ||
KKR & Co., Inc. | 14,800 | 1,102,600 | ||
$4,580,389 | ||||
Business Services – 2.7% | ||||
Accenture PLC, “A” | 2,647 | $ 1,097,314 | ||
Amdocs Ltd. | 7,861 | 588,317 | ||
Clarivate PLC (a) | 48,524 | 1,141,284 | ||
Cognizant Technology Solutions Corp., “A” | 7,054 | 625,831 | ||
Fidelity National Information Services, Inc. | 7,815 | 853,007 | ||
Fiserv, Inc. (a) | 8,169 | 847,861 | ||
Global Payments, Inc. | 4,698 | 635,076 | ||
PayPal Holdings, Inc. (a) | 7,943 | 1,497,891 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Business Services – continued | ||||
Thoughtworks Holding, Inc. (a) | 15,764 | $ 422,633 | ||
$7,709,214 | ||||
Cable TV – 0.1% | ||||
Cable One, Inc. | 138 | $ 243,356 | ||
Chemicals – 0.4% | ||||
Element Solutions, Inc. | 36,792 | $ 893,310 | ||
FMC Corp. | 3,357 | 368,900 | ||
$1,262,210 | ||||
Computer Software – 10.8% | ||||
Adobe Systems, Inc. (a) | 6,361 | $ 3,607,069 | ||
Atlassian Corp. PLC, “A” (a) | 5,755 | 2,194,324 | ||
Avalara, Inc. (a) | 5,246 | 677,311 | ||
Black Knight, Inc. (a) | 6,877 | 570,034 | ||
Cadence Design Systems, Inc. (a) | 13,576 | 2,529,888 | ||
Microsoft Corp. (s) | 52,146 | 17,537,743 | ||
Ping Identity Holding Corp. (a) | 12,150 | 277,992 | ||
salesforce.com, inc. (a) | 11,962 | 3,039,903 | ||
$30,434,264 | ||||
Computer Software - Systems – 8.6% | ||||
Apple, Inc. (s) | 103,844 | $ 18,439,579 | ||
Block, Inc., “A” (a) | 4,265 | 688,840 | ||
NICE Systems Ltd., ADR (a) | 3,843 | 1,166,735 | ||
Rapid7, Inc. (a) | 7,197 | 847,015 | ||
ServiceNow, Inc. (a) | 3,072 | 1,994,066 | ||
Zebra Technologies Corp., “A” (a) | 1,955 | 1,163,616 | ||
$24,299,851 | ||||
Construction – 1.7% | ||||
AvalonBay Communities, Inc., REIT | 3,960 | $ 1,000,256 | ||
AZEK Co., Inc. (a) | 16,926 | 782,658 | ||
Masco Corp. | 14,821 | 1,040,731 | ||
Otis Worldwide Corp. | 7,261 | 632,215 | ||
Sherwin-Williams Co. | 1,369 | 482,107 | ||
Vulcan Materials Co. | 3,927 | 815,167 | ||
$4,753,134 | ||||
Consumer Products – 1.3% | ||||
Colgate-Palmolive Co. | 13,249 | $ 1,130,670 | ||
International Flavors & Fragrances, Inc. | 3,051 | 459,633 | ||
Kimberly-Clark Corp. | 6,249 | 893,107 | ||
Procter & Gamble Co. | 7,976 | 1,304,714 | ||
$3,788,124 | ||||
Consumer Services – 0.7% | ||||
Booking Holdings, Inc. (a) | 293 | $ 702,974 | ||
Bright Horizons Family Solutions, Inc. (a) | 4,762 | 599,441 | ||
Grand Canyon Education, Inc. (a) | 8,469 | 725,878 | ||
$2,028,293 | ||||
Containers – 0.3% | ||||
Ball Corp. | 8,430 | $ 811,556 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Electrical Equipment – 1.4% | ||||
AMETEK, Inc. | 3,266 | $ 480,233 | ||
Amphenol Corp., “A” | 3,614 | 316,080 | ||
Fortive Corp. | 5,525 | 421,502 | ||
Johnson Controls International PLC | 15,419 | 1,253,719 | ||
Sensata Technologies Holding PLC (a) | 19,455 | 1,200,179 | ||
TE Connectivity Ltd. | 2,181 | 351,883 | ||
$4,023,596 | ||||
Electronics – 5.1% | ||||
Advanced Micro Devices (a) | 14,773 | $ 2,125,835 | ||
Applied Materials, Inc. | 13,236 | 2,082,817 | ||
Broadcom, Inc. | 4,245 | 2,824,665 | ||
Intel Corp. | 24,446 | 1,258,969 | ||
Lam Research Corp. | 2,126 | 1,528,913 | ||
Monolithic Power Systems, Inc. | 1,459 | 719,768 | ||
NXP Semiconductors N.V. | 7,579 | 1,726,345 | ||
Silicon Laboratories, Inc. (a) | 1,410 | 291,052 | ||
Texas Instruments, Inc. | 10,394 | 1,958,957 | ||
$14,517,321 | ||||
Energy - Independent – 1.0% | ||||
ConocoPhillips | 14,387 | $ 1,038,453 | ||
Diamondback Energy, Inc. | 5,601 | 604,068 | ||
Pioneer Natural Resources Co. | 3,086 | 561,282 | ||
Valero Energy Corp. | 6,757 | 507,518 | ||
$2,711,321 | ||||
Energy - Integrated – 1.0% | ||||
Chevron Corp. | 23,143 | $ 2,715,831 | ||
Engineering - Construction – 0.2% | ||||
APi Group, Inc. (a) | 25,280 | $ 651,466 | ||
Food & Beverages – 2.2% | ||||
Archer Daniels Midland Co. | 11,519 | $ 778,569 | ||
Coca-Cola Co. | 6,995 | 414,174 | ||
Coca-Cola Europacific Partners PLC | 6,649 | 371,879 | ||
Hostess Brands, Inc. (a) | 8,672 | 177,082 | ||
J.M. Smucker Co. | 2,874 | 390,347 | ||
Mondelez International, Inc. | 24,679 | 1,636,464 | ||
Oatly Group AB, ADR (a) | 32,796 | 261,056 | ||
PepsiCo, Inc. | 13,035 | 2,264,310 | ||
$6,293,881 | ||||
Food & Drug Stores – 0.5% | ||||
Wal-Mart Stores, Inc. | 10,541 | $ 1,525,177 | ||
Forest & Paper Products – 0.4% | ||||
Rayonier, Inc., REIT | 28,623 | $ 1,155,224 | ||
Gaming & Lodging – 0.9% | ||||
International Game Technology PLC | 19,429 | $ 561,692 | ||
Marriott International, Inc., “A” (a) | 5,651 | 933,771 | ||
Penn National Gaming, Inc. (a) | 3,417 | 177,172 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Gaming & Lodging – continued | ||||
Wyndham Hotels & Resorts, Inc. | 8,969 | $ 804,071 | ||
$2,476,706 | ||||
General Merchandise – 0.9% | ||||
Dollar General Corp. | 10,415 | $ 2,456,169 | ||
Health Maintenance Organizations – 1.4% | ||||
Cigna Corp. | 11,954 | $ 2,744,997 | ||
Humana, Inc. | 2,832 | 1,313,652 | ||
$4,058,649 | ||||
Insurance – 3.2% | ||||
Aon PLC | 9,652 | $ 2,901,005 | ||
Arthur J. Gallagher & Co. | 9,252 | 1,569,787 | ||
Assurant, Inc. | 4,832 | 753,115 | ||
Chubb Ltd. | 7,994 | 1,545,320 | ||
Everest Re Group Ltd. | 1,855 | 508,122 | ||
Hartford Financial Services Group, Inc. | 11,043 | 762,409 | ||
MetLife, Inc. | 10,661 | 666,206 | ||
Reinsurance Group of America, Inc. | 3,212 | 351,682 | ||
SiriusPoint Ltd. (a) | 1,642 | 13,349 | ||
$9,070,995 | ||||
Internet – 5.9% | ||||
Alphabet, Inc., “A” (a)(s) | 3,975 | $ 11,515,734 | ||
Meta Platforms, Inc., “A” (a) | 15,187 | 5,108,147 | ||
$16,623,881 | ||||
Leisure & Toys – 0.7% | ||||
Electronic Arts, Inc. | 11,358 | $ 1,498,120 | ||
Roblox Corp., “A” (a) | 4,303 | 443,898 | ||
$1,942,018 | ||||
Machinery & Tools – 2.5% | ||||
Eaton Corp. PLC | 10,051 | $ 1,737,014 | ||
IDEX Corp. | 1,651 | 390,164 | ||
Ingersoll Rand, Inc. | 19,348 | 1,197,061 | ||
PACCAR, Inc. | 13,959 | 1,232,021 | ||
Regal Rexnord Corp. | 4,360 | 741,985 | ||
Roper Technologies, Inc. | 3,455 | 1,699,376 | ||
$6,997,621 | ||||
Major Banks – 3.4% | ||||
JPMorgan Chase & Co. (s) | 29,072 | $ 4,603,551 | ||
Morgan Stanley | 25,522 | 2,505,240 | ||
PNC Financial Services Group, Inc. | 12,758 | 2,558,234 | ||
$9,667,025 | ||||
Medical & Health Technology & Services – 1.7% | ||||
Guardant Health, Inc. (a) | 2,010 | $ 201,040 | ||
ICON PLC (a) | 7,512 | 2,326,467 | ||
McKesson Corp. | 8,844 | 2,198,353 | ||
$4,725,860 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Medical Equipment – 5.0% | ||||
Align Technology, Inc. (a) | 908 | $ 596,720 | ||
Becton, Dickinson and Co. | 8,900 | 2,238,172 | ||
Boston Scientific Corp. (a) | 45,530 | 1,934,115 | ||
Envista Holdings Corp. (a) | 10,840 | 488,450 | ||
Maravai Lifesciences Holdings, Inc., “A” (a) | 50,628 | 2,121,313 | ||
Medtronic PLC | 18,863 | 1,951,377 | ||
Quidel Corp. (a) | 5,826 | 786,452 | ||
STERIS PLC | 7,273 | 1,770,321 | ||
Thermo Fisher Scientific, Inc. | 3,489 | 2,328,000 | ||
$14,214,920 | ||||
Natural Gas - Pipeline – 0.3% | ||||
Cheniere Energy, Inc. | 3,695 | $ 374,747 | ||
Enterprise Products Partners LP | 19,214 | 421,939 | ||
$796,686 | ||||
Network & Telecom – 0.5% | ||||
Equinix, Inc., REIT | 1,750 | $ 1,480,220 | ||
Oil Services – 0.3% | ||||
Cactus, Inc., “A” | 10,011 | $ 381,719 | ||
ChampionX Corp. (a) | 24,317 | 491,447 | ||
$873,166 | ||||
Other Banks & Diversified Financials – 4.2% | ||||
Bank OZK | 8,647 | $ 402,345 | ||
First Interstate BancSystem, Inc. | 13,513 | 549,574 | ||
Moody's Corp. | 2,843 | 1,110,419 | ||
Northern Trust Corp. | 6,123 | 732,372 | ||
Signature Bank | 2,410 | 779,562 | ||
SLM Corp. | 38,931 | 765,773 | ||
Truist Financial Corp. | 49,603 | 2,904,255 | ||
United Community Bank, Inc. | 17,287 | 621,295 | ||
Visa, Inc., “A” | 19,256 | 4,172,968 | ||
$12,038,563 | ||||
Pharmaceuticals – 4.8% | ||||
Eli Lilly & Co. | 9,842 | $ 2,718,557 | ||
Johnson & Johnson | 22,505 | 3,849,930 | ||
Merck & Co., Inc. | 41,447 | 3,176,498 | ||
Organon & Co. | 20,479 | 623,586 | ||
Zoetis, Inc. | 12,796 | 3,122,608 | ||
$13,491,179 | ||||
Pollution Control – 0.3% | ||||
GFL Environmental, Inc. | 22,041 | $ 834,252 | ||
Printing & Publishing – 0.1% | ||||
Warner Music Group Corp. | 6,510 | $ 281,102 | ||
Railroad & Shipping – 1.2% | ||||
Canadian Pacific Railway Ltd. | 29,301 | $ 2,107,914 | ||
CSX Corp. | 34,103 | 1,282,273 | ||
$3,390,187 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Real Estate – 1.3% | ||||
Broadstone Net Lease, Inc., REIT | 24,141 | $ 599,180 | ||
Empire State Realty Trust, REIT, “A” | 45,320 | 403,348 | ||
Extra Space Storage, Inc., REIT | 3,613 | 819,175 | ||
Innovative Industrial Properties, Inc., REIT | 1,658 | 435,905 | ||
STORE Capital Corp., REIT | 27,466 | 944,830 | ||
Sun Communities, Inc., REIT | 1,793 | 376,476 | ||
$3,578,914 | ||||
Restaurants – 1.0% | ||||
Starbucks Corp. | 16,315 | $ 1,908,366 | ||
Wendy's Co. | 44,127 | 1,052,429 | ||
$2,960,795 | ||||
Specialty Chemicals – 1.4% | ||||
Air Products & Chemicals, Inc. | 2,456 | $ 747,263 | ||
Ashland Global Holdings, Inc. | 7,069 | 761,049 | ||
Avient Corp. | 11,530 | 645,103 | ||
Axalta Coating Systems Ltd. (a) | 20,483 | 678,397 | ||
Diversey Holdings Ltd. (a) | 33,427 | 444,913 | ||
DuPont de Nemours, Inc. | 10,458 | 844,797 | ||
$4,121,522 | ||||
Specialty Stores – 5.8% | ||||
Amazon.com, Inc. (a)(s) | 3,060 | $ 10,203,081 | ||
Burlington Stores, Inc. (a) | 1,938 | 564,946 | ||
Farfetch Ltd., “A” (a) | 21,170 | 707,713 | ||
Home Depot, Inc. | 10,477 | 4,348,060 | ||
Ross Stores, Inc. | 5,030 | 574,828 | ||
$16,398,628 | ||||
Telecommunications - Wireless – 2.4% | ||||
Liberty Broadband Corp. (a) | 13,337 | $ 2,148,591 | ||
SBA Communications Corp., REIT | 5,124 | 1,993,338 | ||
T-Mobile US, Inc. (a) | 22,361 | 2,593,429 | ||
$6,735,358 | ||||
Tobacco – 0.4% | ||||
Philip Morris International, Inc. | 11,988 | $ 1,138,860 | ||
Utilities - Electric Power – 2.9% | ||||
American Electric Power Co., Inc. | 5,775 | $ 513,802 | ||
CenterPoint Energy, Inc. | 29,611 | 826,443 | ||
Dominion Energy, Inc. | 4,728 | 371,432 | ||
Duke Energy Corp. | 5,949 | 624,050 | ||
Evergy, Inc. | 7,342 | 503,735 | ||
Exelon Corp. | 15,355 | 886,905 | ||
Generac Holdings, Inc. (a) | 1,438 | 506,061 | ||
NextEra Energy, Inc. | 20,787 | 1,940,674 | ||
PG&E Corp. (a) | 64,272 | 780,262 | ||
Pinnacle West Capital Corp. | 1,331 | 93,955 | ||
Southern Co. | 7,948 | 545,074 | ||
Xcel Energy, Inc. | 8,163 | 552,635 | ||
$8,145,028 | ||||
Total Common Stocks (Identified Cost, $163,656,464) | $ 281,482,195 |
Issuer | Shares/Par | Value ($) | ||
Investment Companies (h) – 0.9% | ||||
Money Market Funds – 0.9% | ||||
MFS Institutional Money Market Portfolio, 0.07% (v) (Identified Cost, $2,418,811) | 2,418,811 | $ 2,418,811 | ||
Securities Sold Short – (0.4)% | ||||
Medical & Health Technology & Services – (0.2)% | ||||
Healthcare Services Group, Inc. | (42,085) | $ (748,692) | ||
Telecommunications - Wireless – (0.2)% | ||||
Crown Castle International Corp., REIT | (2,286) | $ (477,180) | ||
Total Securities Sold Short (Proceeds Received, $1,478,521) | $ (1,225,872) | |||
Other Assets, Less Liabilities – 0.0% | 68,481 | |||
Net Assets – 100.0% | $ 282,743,615 |
(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 $2,418,811 and $281,482,195, respectively. | |||
(s) | Security or a portion of the security was pledged to cover collateral requirements for securities sold short. | |||
(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 |
Financial Statements | Statement of Assets and Liabilities |
At 12/31/21Assets | |
Investments in unaffiliated issuers, at value (identified cost, $163,656,464) | $281,482,195 |
Investments in affiliated issuers, at value (identified cost, $2,418,811) | 2,418,811 |
Deposits with brokers for | |
Securities sold short | 22,653 |
Receivables for | |
Fund shares sold | 89,372 |
Dividends | 221,044 |
Other assets | 1,556 |
Total assets | $284,235,631 |
Liabilities | |
Payables for | |
Securities sold short, at value (proceeds received, $1,478,521) | $1,225,872 |
Fund shares reacquired | 183,529 |
Payable to affiliates | |
Investment adviser | 11,445 |
Administrative services fee | 267 |
Shareholder servicing costs | 122 |
Distribution and/or service fees | 1,053 |
Payable for independent Trustees' compensation | 17 |
Accrued expenses and other liabilities | 69,711 |
Total liabilities | $1,492,016 |
Net assets | $282,743,615 |
Net assets consist of | |
Paid-in capital | $137,442,783 |
Total distributable earnings (loss) | 145,300,832 |
Net assets | $282,743,615 |
Shares of beneficial interest outstanding | 8,781,206 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $206,059,719 | 6,372,749 | $32.33 |
Service Class | 76,683,896 | 2,408,457 | 31.84 |
Financial Statements | Statement of Operations |
Year ended 12/31/21 | |
Net investment income (loss) | |
Income | |
Dividends | $2,976,242 |
Other | 14,199 |
Dividends from affiliated issuers | 1,353 |
Income on securities loaned | 359 |
Foreign taxes withheld | (4,838) |
Total investment income | $2,987,315 |
Expenses | |
Management fee | $1,975,532 |
Distribution and/or service fees | 169,167 |
Shareholder servicing costs | 20,938 |
Administrative services fee | 45,157 |
Independent Trustees' compensation | 5,727 |
Custodian fee | 12,552 |
Shareholder communications | 24,497 |
Audit and tax fees | 59,087 |
Legal fees | 1,706 |
Dividend and interest expense on securities sold short | 55,909 |
Interest expense and fees | 884 |
Miscellaneous | 29,966 |
Total expenses | $2,401,122 |
Reduction of expenses by investment adviser | (33,505) |
Net expenses | $2,367,617 |
Net investment income (loss) | $619,698 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $27,250,690 |
Securities sold short | (325,119) |
Foreign currency | 65 |
Net realized gain (loss) | $26,925,636 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $30,406,416 |
Securities sold short | 488,897 |
Translation of assets and liabilities in foreign currencies | 34 |
Net unrealized gain (loss) | $30,895,347 |
Net realized and unrealized gain (loss) | $57,820,983 |
Change in net assets from operations | $58,440,681 |
Financial Statements | Statements of Changes in Net Assets |
Year ended | ||
12/31/21 | 12/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $619,698 | $1,048,577 |
Net realized gain (loss) | 26,925,636 | 19,666,571 |
Net unrealized gain (loss) | 30,895,347 | 16,236,950 |
Change in net assets from operations | $58,440,681 | $36,952,098 |
Total distributions to shareholders | $(20,746,234) | $(11,731,291) |
Change in net assets from fund share transactions | $12,660,144 | $(7,064,004) |
Total change in net assets | $50,354,591 | $18,156,803 |
Net assets | ||
At beginning of period | 232,389,024 | 214,232,221 |
At end of period | $282,743,615 | $232,389,024 |
Financial Statements | Financial Highlights |
Initial Class | Year ended | ||||
12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $27.88 | $24.81 | $21.68 | $25.21 | $21.67 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.09 | $0.14 | $0.18 | $0.20 | $0.17 |
Net realized and unrealized gain (loss) | 6.85 | 4.38 | 6.59 | (0.78) | 5.04 |
Total from investment operations | $6.94 | $4.52 | $6.77 | $(0.58) | $5.21 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.14) | $(0.18) | $(0.21) | $(0.18) | $(0.23) |
From net realized gain | (2.35) | (1.27) | (3.43) | (2.77) | (1.44) |
Total distributions declared to shareholders | $(2.49) | $(1.45) | $(3.64) | $(2.95) | $(1.67) |
Net asset value, end of period (x) | $32.33 | $27.88 | $24.81 | $21.68 | $25.21 |
Total return (%) (k)(r)(s)(x) | 25.31 | 18.71 | 33.19 | (3.83) | 24.82 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.85 | 0.87 | 0.88 | 0.87 | 0.87 |
Expenses after expense reductions | 0.83 | 0.86 | 0.87 | 0.86 | 0.86 |
Net investment income (loss) | 0.29 | 0.56 | 0.75 | 0.79 | 0.72 |
Portfolio turnover | 35 | 46 | 37 | 40 | 39 |
Net assets at end of period (000 omitted) | $206,060 | $177,571 | $167,488 | $144,991 | $171,038 |
Supplemental Ratios (%): | |||||
Ratios of expenses to average net assets after expense reductions excluding short sale expenses and interest expense and fees | 0.81 | 0.83 | 0.83 | 0.83 | 0.84 |
Service Class | Year ended | ||||
12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $27.50 | $24.50 | $21.44 | $24.96 | $21.47 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.02 | $0.08 | $0.12 | $0.14 | $0.11 |
Net realized and unrealized gain (loss) | 6.76 | 4.31 | 6.51 | (0.78) | 4.99 |
Total from investment operations | $6.78 | $4.39 | $6.63 | $(0.64) | $5.10 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.09) | $(0.12) | $(0.14) | $(0.11) | $(0.17) |
From net realized gain | (2.35) | (1.27) | (3.43) | (2.77) | (1.44) |
Total distributions declared to shareholders | $(2.44) | $(1.39) | $(3.57) | $(2.88) | $(1.61) |
Net asset value, end of period (x) | $31.84 | $27.50 | $24.50 | $21.44 | $24.96 |
Total return (%) (k)(r)(s)(x) | 25.05 | 18.39 | 32.87 | (4.07) | 24.50 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 1.10 | 1.12 | 1.13 | 1.12 | 1.12 |
Expenses after expense reductions | 1.08 | 1.11 | 1.12 | 1.11 | 1.11 |
Net investment income (loss) | 0.07 | 0.32 | 0.50 | 0.54 | 0.47 |
Portfolio turnover | 35 | 46 | 37 | 40 | 39 |
Net assets at end of period (000 omitted) | $76,684 | $54,818 | $46,744 | $41,195 | $46,453 |
Supplemental Ratios (%): | |||||
Ratios of expenses to average net assets after expense reductions excluding short sale expenses and interest expense and fees | 1.06 | 1.08 | 1.08 | 1.08 | 1.09 |
(d) | Per share data is based on average shares outstanding. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. Excluding the effect of the proceeds received from a non-recurring litigation settlement against Household International, Inc., the total return for the year ended December 31, 2017 would have been lower by approximately 0.78%. |
(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 | $281,482,195 | $— | $— | $281,482,195 |
Mutual Funds | 2,418,811 | — | — | 2,418,811 |
Total | $283,901,006 | $— | $— | $283,901,006 |
Securities Sold Short | $(1,225,872) | $— | $— | $(1,225,872) |
Year ended 12/31/21 | Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $2,074,180 | $3,863,247 |
Long-term capital gains | 18,672,054 | 7,868,044 |
Total distributions | $20,746,234 | $11,731,291 |
As of 12/31/21 | |
Cost of investments | $165,133,602 |
Gross appreciation | 120,808,520 |
Gross depreciation | (3,266,988) |
Net unrealized appreciation (depreciation) | $117,541,532 |
Undistributed ordinary income | 8,272,058 |
Undistributed long-term capital gain | 19,314,781 |
Other temporary differences | 172,461 |
Total distributable earnings (loss) | $145,300,832 |
Year ended 12/31/21 | Year ended 12/31/20 | ||
Initial Class | $15,244,249 | $9,114,275 | |
Service Class | 5,501,985 | 2,617,016 | |
Total | $20,746,234 | $11,731,291 |
Up to $1 billion | 0.75% |
In excess of $1 billion and up to $2.5 billion | 0.65% |
In excess of $2.5 billion | 0.60% |
Year ended 12/31/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 625,283 | $19,234,200 | 328,117 | $8,057,874 | |
Service Class | 752,461 | 22,860,413 | 404,275 | 9,377,983 | |
1,377,744 | $42,094,613 | 732,392 | $17,435,857 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | 493,821 | $15,244,249 | 354,090 | $9,114,275 | |
Service Class | 180,808 | 5,501,985 | 102,951 | 2,617,016 | |
674,629 | $20,746,234 | 457,041 | $11,731,291 | ||
Shares reacquired | |||||
Initial Class | (1,116,226) | $(34,482,616) | (1,063,282) | $(26,098,196) | |
Service Class | (517,854) | (15,698,087) | (422,060) | (10,132,956) | |
(1,634,080) | $(50,180,703) | (1,485,342) | $(36,231,152) | ||
Net change | |||||
Initial Class | 2,878 | $(4,167) | (381,075) | $(8,926,047) | |
Service Class | 415,415 | 12,664,311 | 85,166 | 1,862,043 | |
418,293 | $12,660,144 | (295,909) | $(7,064,004) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $1,489,118 | $51,594,670 | $50,664,977 | $— | $— | $2,418,811 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $1,353 | $— |
February 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 | 135 | 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 | 135 | Private investor | N/A | |||||
Steven E. Buller (age 70) | Trustee | February 2014 | 135 | Private investor | N/A | |||||
John A. Caroselli (age 67) | Trustee | March 2017 | 135 | Private investor; JC Global Advisors, LLC (management consulting), President (since 2015) | N/A | |||||
Maureen R. Goldfarb (age 66) | Trustee | January 2009 | 135 | Private investor | N/A | |||||
Peter D. Jones (age 66) | Trustee | January 2019 | 135 | Private investor | N/A | |||||
James W. Kilman, Jr. (age 60) | Trustee | January 2019 | 135 | 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) | |||||
Clarence Otis, Jr. (age 65) | Trustee | March 2017 | 135 | Private investor | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director | |||||
Maryanne L. Roepke (age 65) | Trustee | May 2014 | 135 | Private investor | N/A | |||||
Laurie J. Thomsen (age 64) | Trustee | March 2005 | 135 | 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 | 135 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | ||||
Kino Clark (k) (age 53) | Assistant Treasurer | January 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
John W. Clark, Jr. (k) (age 54) | Assistant Treasurer | April 2017 | 135 | Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head - Treasurer's Office (until February 2017) | ||||
Thomas H. Connors (k) (age 62) | Assistant Secretary and Assistant Clerk | September 2012 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
David L. DiLorenzo (k) (age 53) | President | July 2005 | 135 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 54) | Secretary and Clerk | April 2017 | 135 | 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 48) | Assistant Secretary and Assistant Clerk | June 2006 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
Amanda S. Mooradian (k) (age 42) | Assistant Secretary and Assistant Clerk | September 2018 | 135 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 51) | Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Kasey L. Phillips (k) (age 51) | Assistant Treasurer | September 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 47) | Assistant Secretary and Assistant Clerk | October 2014 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Martin J. Wolin (k) (age 54) | Chief Compliance Officer | July 2015 | 135 | Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer | ||||
James O. Yost (k) (age 61) | Treasurer | September 1990 | 135 | 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 | Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 |
Portfolio Manager(s) | |
Joseph MacDougall |
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 Portfolio
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2 | |
3 | |
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7 | |
8 | |
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14 | |
15 | |
17 | |
23 | |
24 | |
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29 | |
29 | |
29 | |
29 | |
30 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 9.6% |
Samsung Electronics Co. Ltd. | 6.2% |
Tencent Holdings Ltd. | 6.0% |
Alibaba Group Holding Ltd., ADR | 3.5% |
Sberbank of Russia PJSC | 2.8% |
Tata Consultancy Services Ltd. | 2.7% |
HDFC Bank Ltd. | 2.4% |
Yum China Holdings, Inc. | 2.4% |
AIA Group Ltd. | 2.2% |
Samsung Fire & Marine Insurance Co. Ltd. | 2.1% |
Information Technology | 21.7% |
Financials | 21.6% |
Communication Services | 13.2% |
Consumer Discretionary | 13.1% |
Consumer Staples | 10.5% |
Materials | 6.3% |
Energy | 3.8% |
Industrials | 3.6% |
Real Estate | 2.2% |
Health Care | 1.4% |
Utilities | 1.1% |
China | 29.3% |
South Korea | 13.0% |
Taiwan | 11.4% |
India | 11.1% |
Russia | 8.0% |
Brazil | 5.2% |
Hong Kong | 5.2% |
Mexico | 3.3% |
United States | 2.6% |
Other Countries | 10.9% |
Hong Kong Dollar | 24.1% |
South Korean Won | 13.0% |
Taiwan Dollar | 11.4% |
Indian Rupee | 10.4% |
Chinese Renminbi | 7.9% |
United States Dollar | 7.4% |
Russian Ruble | 6.6% |
Brazilian Real | 5.2% |
Euro | 3.4% |
Other Currencies | 10.6% |
(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. |
(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 | 5-yr | 10-yr |
Initial Class | 6/05/96 | (6.75)% | 8.09% | 3.99% |
Service Class | 8/24/01 | (7.02)% | 7.82% | 3.72% |
MSCI Emerging Markets Index (net div) (f) | (2.54)% | 9.87% | 5.49% |
(f) | Source: FactSet Research Systems Inc. |
(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. |
July 1, 2021 through December 31, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 7/01/21 | Ending Account Value 12/31/21 | Expenses Paid During Period (p) 7/01/21-12/31/21 | |
Initial Class | Actual | 1.23% | $1,000.00 | $889.27 | $5.86 |
Hypothetical (h) | 1.23% | $1,000.00 | $1,019.00 | $6.26 | |
Service Class | Actual | 1.48% | $1,000.00 | $887.97 | $7.04 |
Hypothetical (h) | 1.48% | $1,000.00 | $1,017.74 | $7.53 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 98.5% | ||||
Airlines – 0.7% | ||||
Shanghai International Air Co., Ltd. (a) | 41,500 | $ 304,021 | ||
Alcoholic Beverages – 3.9% | ||||
Ambev S.A., ADR | 81,207 | $ 227,380 | ||
China Resources Beer Holdings Co. Ltd. | 74,000 | 605,947 | ||
Jiangsu Yanghe Brewery JSC Ltd. | 5,400 | 139,572 | ||
Kweichow Moutai Co. Ltd., “A” | 2,300 | 739,799 | ||
$1,712,698 | ||||
Automotive – 3.4% | ||||
Hero MotoCorp Ltd. | 9,038 | $ 299,351 | ||
Mahindra & Mahindra Ltd. | 54,530 | 614,104 | ||
PT United Tractors Tbk | 386,200 | 600,198 | ||
$1,513,653 | ||||
Biotechnology – 0.6% | ||||
Hugel, Inc. | 2,158 | $ 278,657 | ||
Brokerage & Asset Managers – 2.6% | ||||
B3 Brasil Bolsa Balcao S.A. | 211,100 | $ 422,200 | ||
Moscow Exchange MICEX-RTS PJSC | 365,745 | 746,115 | ||
$1,168,315 | ||||
Business Services – 4.3% | ||||
Cognizant Technology Solutions Corp., “A” | 5,596 | $ 496,477 | ||
GDS Holdings Ltd., “A” (a) | 12,800 | 74,362 | ||
Kingsoft Cloud Holdings, ADR (a) | 8,713 | 137,230 | ||
Tata Consultancy Services Ltd. | 24,170 | 1,215,512 | ||
$1,923,581 | ||||
Chemicals – 1.2% | ||||
UPL Ltd. | 52,957 | $ 532,237 | ||
Computer Software – 3.5% | ||||
NAVER Corp. (a) | 2,735 | $ 870,828 | ||
NetEase.com, Inc., ADR | 6,782 | 690,272 | ||
$1,561,100 | ||||
Computer Software - Systems – 7.5% | ||||
Hon Hai Precision Industry Co. Ltd. | 153,000 | $ 575,126 | ||
Samsung Electronics Co. Ltd. | 41,678 | 2,745,226 | ||
$3,320,352 | ||||
Construction – 2.9% | ||||
Gree Electric Appliances, Inc., “A” | 129,800 | $ 754,155 | ||
Techtronic Industries Co. Ltd. | 27,000 | 537,400 | ||
$1,291,555 | ||||
Consumer Products – 0.2% | ||||
AmorePacific Corp. (a) | 584 | $ 82,042 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Consumer Services – 1.2% | ||||
51job, Inc., ADR (a) | 2,908 | $ 142,288 | ||
MakeMyTrip Ltd. (a) | 11,605 | 321,575 | ||
New Oriental Education & Technology Group, Inc. (a) | 29,933 | 62,859 | ||
$526,722 | ||||
Electronics – 9.6% | ||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 191,258 | $ 4,251,407 | ||
Energy - Integrated – 2.4% | ||||
Galp Energia SGPS S.A., “B” | 39,783 | $ 385,896 | ||
LUKOIL PJSC, ADR | 7,719 | 690,850 | ||
$1,076,746 | ||||
Engineering - Construction – 0.9% | ||||
Doosan Bobcat, Inc. (a) | 11,843 | $ 405,974 | ||
Food & Beverages – 4.8% | ||||
Gruma S.A.B. de C.V. | 40,721 | $ 522,091 | ||
Inner Mongolia Yili Industrial Group Co. Ltd., “A” | 132,341 | 860,906 | ||
Orion Corp. (a) | 4,930 | 429,237 | ||
Tingyi (Cayman Islands) Holding Corp. | 158,000 | 324,610 | ||
$2,136,844 | ||||
Forest & Paper Products – 0.9% | ||||
Suzano S.A. (a) | 35,500 | $ 383,107 | ||
Gaming & Lodging – 0.1% | ||||
Kangwon Land, Inc. (a) | 1,003 | $ 20,292 | ||
General Merchandise – 1.7% | ||||
Bim Birlesik Magazalar A.S. | 56,075 | $ 259,838 | ||
Walmart de Mexico S.A.B. de C.V. | 128,194 | 476,388 | ||
$736,226 | ||||
Insurance – 5.9% | ||||
AIA Group Ltd. | 95,000 | $ 957,608 | ||
Ping An Insurance Co. of China Ltd., “H” | 103,000 | 741,701 | ||
Samsung Fire & Marine Insurance Co. Ltd. (a) | 5,433 | 923,210 | ||
$2,622,519 | ||||
Internet – 10.1% | ||||
Alibaba Group Holding Ltd. (a) | 2,900 | $ 44,220 | ||
Alibaba Group Holding Ltd., ADR (a) | 13,021 | 1,546,764 | ||
Baidu, Inc., ADR (a) | 1,339 | 199,230 | ||
Tencent Holdings Ltd. | 45,800 | 2,683,079 | ||
$4,473,293 | ||||
Machinery & Tools – 0.4% | ||||
AirTAC International Group | 5,000 | $ 184,335 | ||
Major Banks – 2.0% | ||||
China Construction Bank Corp. | 848,670 | $ 587,726 | ||
Erste Group Bank AG | 6,274 | 294,932 | ||
$882,658 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Medical & Health Technology & Services – 0.2% | ||||
Burning Rock Biotech Ltd., ADR (a) | 9,052 | $ 86,266 | ||
Metals & Mining – 1.6% | ||||
Alrosa PJSC | 67,755 | $ 110,807 | ||
Vale S.A., ADR | 41,510 | 581,970 | ||
$692,777 | ||||
Natural Gas - Distribution – 1.2% | ||||
China Resources Gas Group Ltd. | 90,000 | $ 508,429 | ||
Network & Telecom – 0.3% | ||||
VTech Holdings Ltd. | 17,800 | $ 139,363 | ||
Other Banks & Diversified Financials – 11.0% | ||||
Credicorp Ltd. | 5,826 | $ 711,180 | ||
E.Sun Financial Holding Co. Ltd. | 55,371 | 56,137 | ||
Grupo Financiero Inbursa S.A. de C.V. (a) | 169,332 | 202,780 | ||
HDFC Bank Ltd. | 54,063 | 1,075,941 | ||
Housing Development Finance Corp. Ltd. | 22,605 | 786,523 | ||
Komercni Banka A.S. | 7,583 | 324,226 | ||
Muthoot Finance Ltd. | 4,588 | 92,312 | ||
Sberbank of Russia PJSC | 321,885 | 1,258,669 | ||
Tisco Financial Group PCL | 134,700 | 387,104 | ||
$4,894,872 | ||||
Pharmaceuticals – 0.6% | ||||
Genomma Lab Internacional S.A., “B” | 254,774 | $ 267,273 | ||
Precious Metals & Minerals – 1.7% | ||||
Gold Fields Ltd., ADR | 15,451 | $ 169,806 | ||
Polymetal International PLC | 32,484 | 576,650 | ||
$746,456 | ||||
Real Estate – 1.5% | ||||
ESR Cayman Ltd. (a) | 95,600 | $ 323,058 | ||
Hang Lung Properties Ltd. | 111,000 | 228,333 | ||
Swire Properties Ltd. | 47,600 | 119,282 | ||
$670,673 | ||||
Restaurants – 2.4% | ||||
Yum China Holdings, Inc. | 21,542 | $ 1,073,653 | ||
Specialty Chemicals – 1.0% | ||||
PTT Global Chemical PLC | 260,700 | $ 458,498 | ||
Specialty Stores – 3.1% | ||||
Lojas Renner S.A. | 89,517 | $ 392,782 | ||
Meituan, “B” (a) | 17,700 | 511,645 | ||
Multiplan Empreendimentos Imobiliarios S.A. | 89,839 | 301,937 | ||
Vipshop Holdings Ltd., ADR (a) | 19,066 | 160,154 | ||
$1,366,518 | ||||
Telecommunications - Wireless – 0.3% | ||||
Mobile TeleSystems PJSC, ADR | 17,937 | $ 142,599 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Telephone Services – 2.8% | ||||
Hellenic Telecommunications Organization S.A. | 43,645 | $ 807,708 | ||
PT Telekom Indonesia | 1,591,600 | 451,153 | ||
$1,258,861 | ||||
Total Common Stocks (Identified Cost, $32,055,291) | $43,694,572 | |||
Investment Companies (h) – 1.8% | ||||
Money Market Funds – 1.8% | ||||
MFS Institutional Money Market Portfolio, 0.07% (v) (Identified Cost, $801,674) | 801,674 | $ 801,674 | ||
Other Assets, Less Liabilities – (0.3)% | (149,504) | |||
Net Assets – 100.0% | $44,346,742 |
(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 $801,674 and $43,694,572, 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 |
PCL | Public Company Limited |
Financial Statements | Statement of Assets and Liabilities |
At 12/31/21Assets | |
Investments in unaffiliated issuers, at value (identified cost, $32,055,291) | $43,694,572 |
Investments in affiliated issuers, at value (identified cost, $801,674) | 801,674 |
Foreign currency, at value (identified cost, $5,677) | 5,677 |
Receivables for | |
Investments sold | 181,752 |
Fund shares sold | 24,755 |
Dividends | 67,367 |
Receivable from investment adviser | 26,309 |
Other assets | 467 |
Total assets | $44,802,573 |
Liabilities | |
Payables for | |
Investments purchased | $207,844 |
Fund shares reacquired | 8,009 |
Payable to affiliates | |
Administrative services fee | 96 |
Shareholder servicing costs | 48 |
Distribution and/or service fees | 338 |
Payable for independent Trustees' compensation | 61 |
Deferred country tax expense payable | 115,817 |
Accrued expenses and other liabilities | 123,618 |
Total liabilities | $455,831 |
Net assets | $44,346,742 |
Net assets consist of | |
Paid-in capital | $30,099,428 |
Total distributable earnings (loss) | 14,247,314 |
Net assets | $44,346,742 |
Shares of beneficial interest outstanding | 2,793,477 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $19,498,072 | 1,216,722 | $16.03 |
Service Class | 24,848,670 | 1,576,755 | 15.76 |
Financial Statements | Statement of Operations |
Year ended 12/31/21 | |
Net investment income (loss) | |
Income | |
Dividends | $1,242,824 |
Other | 10,024 |
Dividends from affiliated issuers | 398 |
Income on securities loaned | 61 |
Foreign taxes withheld | (148,550) |
Total investment income | $1,104,757 |
Expenses | |
Management fee | $486,760 |
Distribution and/or service fees | 63,863 |
Shareholder servicing costs | 8,631 |
Administrative services fee | 17,500 |
Independent Trustees' compensation | 3,042 |
Custodian fee | 101,681 |
Shareholder communications | 12,192 |
Audit and tax fees | 97,087 |
Legal fees | 311 |
Miscellaneous | 22,061 |
Total expenses | $813,128 |
Reduction of expenses by investment adviser | (179,193) |
Net expenses | $633,935 |
Net investment income (loss) | $470,822 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers (net of $11,539 country tax) | $3,021,049 |
Foreign currency | (14,930) |
Net realized gain (loss) | $3,006,119 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers (net of $11,398 increase in deferred country tax) | $(6,672,509) |
Translation of assets and liabilities in foreign currencies | (97) |
Net unrealized gain (loss) | $(6,672,606) |
Net realized and unrealized gain (loss) | $(3,666,487) |
Change in net assets from operations | $(3,195,665) |
Financial Statements | Statements of Changes in Net Assets |
Year ended | ||
12/31/21 | 12/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $470,822 | $339,255 |
Net realized gain (loss) | 3,006,119 | 489,572 |
Net unrealized gain (loss) | (6,672,606) | 3,857,039 |
Change in net assets from operations | $(3,195,665) | $4,685,866 |
Total distributions to shareholders | $(177,020) | $(3,615,028) |
Change in net assets from fund share transactions | $1,741,105 | $(1,773,884) |
Total change in net assets | $(1,631,580) | $(703,046) |
Net assets | ||
At beginning of period | 45,978,322 | 46,681,368 |
At end of period | $44,346,742 | $45,978,322 |
Financial Statements | Financial Highlights |
Initial Class | Year ended | ||||
12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $17.28 | $17.04 | $14.75 | $17.19 | $12.59 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.20 | $0.14 | $0.28 | $0.11 | $0.06 |
Net realized and unrealized gain (loss) | (1.36) | 1.47 | 2.63 | (2.49) | 4.71 |
Total from investment operations | $(1.16) | $1.61 | $2.91 | $(2.38) | $4.77 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.09) | $(0.50) | $(0.11) | $(0.06) | $(0.17) |
From net realized gain | (0.00)(w) | (0.87) | (0.51) | — | — |
Total distributions declared to shareholders | $(0.09) | $(1.37) | $(0.62) | $(0.06) | $(0.17) |
Net asset value, end of period (x) | $16.03 | $17.28 | $17.04 | $14.75 | $17.19 |
Total return (%) (k)(r)(s)(x) | (6.75) | 10.63 | 20.45 | (13.89) | 37.98 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 1.62 | 1.73 | 1.55 | 1.50 | 1.53 |
Expenses after expense reductions | 1.23 | 1.23 | 1.29 | 1.37 | 1.40 |
Net investment income (loss) | 1.16 | 0.94 | 1.76 | 0.65 | 0.41 |
Portfolio turnover | 41 | 48 | 21 | 31 | 27 |
Net assets at end of period (000 omitted) | $19,498 | $20,335 | $21,065 | $20,887 | $28,026 |
Service Class | Year ended | ||||
12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $16.99 | $16.78 | $14.53 | $16.94 | $12.41 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.15 | $0.11 | $0.24 | $0.07 | $0.02 |
Net realized and unrealized gain (loss) | (1.33) | 1.43 | 2.58 | (2.46) | 4.64 |
Total from investment operations | $(1.18) | $1.54 | $2.82 | $(2.39) | $4.66 |
Less distributions declared to shareholders | �� | ||||
From net investment income | $(0.05) | $(0.46) | $(0.06) | $(0.02) | $(0.13) |
From net realized gain | (0.00)(w) | (0.87) | (0.51) | — | — |
Total distributions declared to shareholders | $(0.05) | $(1.33) | $(0.57) | $(0.02) | $(0.13) |
Net asset value, end of period (x) | $15.76 | $16.99 | $16.78 | $14.53 | $16.94 |
Total return (%) (k)(r)(s)(x) | (6.97) | 10.33 | 20.11 | (14.13) | 37.66 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 1.87 | 1.98 | 1.80 | 1.75 | 1.78 |
Expenses after expense reductions | 1.48 | 1.48 | 1.54 | 1.62 | 1.65 |
Net investment income (loss) | 0.90 | 0.71 | 1.52 | 0.40 | 0.16 |
Portfolio turnover | 41 | 48 | 21 | 31 | 27 |
Net assets at end of period (000 omitted) | $24,849 | $25,643 | $25,616 | $23,973 | $29,665 |
(d) | Per share data is based on average shares outstanding. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(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 | $12,978,888 | $— | $— | $12,978,888 |
South Korea | 5,755,466 | — | — | 5,755,466 |
Taiwan | 5,067,005 | — | — | 5,067,005 |
India | 4,937,555 | — | — | 4,937,555 |
Russia | 1,410,099 | 2,115,591 | — | 3,525,690 |
Brazil | 2,309,376 | — | — | 2,309,376 |
Hong Kong | 2,305,044 | — | — | 2,305,044 |
Mexico | 1,468,532 | — | — | 1,468,532 |
Indonesia | 1,051,351 | — | — | 1,051,351 |
Other Countries | 2,830,905 | 1,464,760 | — | 4,295,665 |
Mutual Funds | 801,674 | — | — | 801,674 |
Total | $40,915,895 | $3,580,351 | $— | $44,496,246 |
Year ended 12/31/21 | Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $177,020 | $1,860,481 |
Long-term capital gains | — | 1,754,547 |
Total distributions | $177,020 | $3,615,028 |
As of 12/31/21 | |
Cost of investments | $34,303,417 |
Gross appreciation | 13,109,576 |
Gross depreciation | (2,916,747) |
Net unrealized appreciation (depreciation) | $10,192,829 |
Undistributed ordinary income | 1,895,976 |
Undistributed long-term capital gain | 2,183,073 |
Other temporary differences | (24,564) |
Total distributable earnings (loss) | $14,247,314 |
Year ended 12/31/21 | Year ended 12/31/20 | ||
Initial Class | $106,466 | $1,583,859 | |
Service Class | 70,554 | 2,031,169 | |
Total | $177,020 | $3,615,028 |
Up to $500 million | 1.05% |
In excess of $500 million | 1.00% |
Year ended 12/31/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 233,978 | $4,138,929 | 79,334 | $1,140,804 | |
Service Class | 290,742 | 4,858,335 | 264,438 | 3,399,163 | |
524,720 | $8,997,264 | 343,772 | $4,539,967 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | 6,356 | $106,466 | 105,240 | $1,583,859 | |
Service Class | 4,281 | 70,554 | 137,148 | 2,031,169 | |
10,637 | $177,020 | 242,388 | $3,615,028 | ||
Shares reacquired | |||||
Initial Class | (200,577) | $(3,532,147) | (243,942) | $(3,723,611) | |
Service Class | (227,204) | (3,901,032) | (419,024) | (6,205,268) | |
(427,781) | $(7,433,179) | (662,966) | $(9,928,879) | ||
Net change | |||||
Initial Class | 39,757 | $713,248 | (59,368) | $(998,948) | |
Service Class | 67,819 | 1,027,857 | (17,438) | (774,936) | |
107,576 | $1,741,105 | (76,806) | $(1,773,884) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $506,370 | $13,837,227 | $13,541,923 | $— | $— | $801,674 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $398 | $— |
February 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 | 135 | 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 | 135 | Private investor | N/A | |||||
Steven E. Buller (age 70) | Trustee | February 2014 | 135 | Private investor | N/A | |||||
John A. Caroselli (age 67) | Trustee | March 2017 | 135 | Private investor; JC Global Advisors, LLC (management consulting), President (since 2015) | N/A | |||||
Maureen R. Goldfarb (age 66) | Trustee | January 2009 | 135 | Private investor | N/A | |||||
Peter D. Jones (age 66) | Trustee | January 2019 | 135 | Private investor | N/A | |||||
James W. Kilman, Jr. (age 60) | Trustee | January 2019 | 135 | 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) | |||||
Clarence Otis, Jr. (age 65) | Trustee | March 2017 | 135 | Private investor | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director | |||||
Maryanne L. Roepke (age 65) | Trustee | May 2014 | 135 | Private investor | N/A | |||||
Laurie J. Thomsen (age 64) | Trustee | March 2005 | 135 | 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 | 135 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | ||||
Kino Clark (k) (age 53) | Assistant Treasurer | January 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
John W. Clark, Jr. (k) (age 54) | Assistant Treasurer | April 2017 | 135 | Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head - Treasurer's Office (until February 2017) | ||||
Thomas H. Connors (k) (age 62) | Assistant Secretary and Assistant Clerk | September 2012 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
David L. DiLorenzo (k) (age 53) | President | July 2005 | 135 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 54) | Secretary and Clerk | April 2017 | 135 | 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 48) | Assistant Secretary and Assistant Clerk | June 2006 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
Amanda S. Mooradian (k) (age 42) | Assistant Secretary and Assistant Clerk | September 2018 | 135 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 51) | Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Kasey L. Phillips (k) (age 51) | Assistant Treasurer | September 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 47) | Assistant Secretary and Assistant Clerk | October 2014 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Martin J. Wolin (k) (age 54) | Chief Compliance Officer | July 2015 | 135 | Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer | ||||
James O. Yost (k) (age 61) | Treasurer | September 1990 | 135 | 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 | Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 |
Portfolio Manager(s) | |
Jose Luis Garcia Rajesh Nair Harry Purcell |
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. |
Governments Portfolio
1 | |
2 | |
4 | |
5 | |
6 | |
7 | |
13 | |
14 | |
15 | |
16 | |
17 | |
25 | |
26 | |
29 | |
31 | |
31 | |
31 | |
31 | |
31 | |
32 |
Non-U.S. Government Bonds | 55.9% |
U.S. Treasury Securities | 33.1% |
Emerging Markets Bonds | 3.3% |
Commercial Mortgage-Backed Securities | 1.1% |
Municipal Bonds | 1.0% |
Mortgage-Backed Securities | 0.3% |
U.S. Government Agencies | 0.3% |
Investment Grade Corporates | 0.2% |
Collateralized Debt Obligations | 0.2% |
AAA | 10.3% |
AA | 14.0% |
A | 13.0% |
BBB | 17.1% |
BB | 2.1% |
U.S. Government | 33.1% |
Federal Agencies | 0.5% |
Not Rated | 5.3% |
Cash & Cash Equivalents | 4.6% |
Other (o) | 0.0% |
Average Duration (d) | 8.1 |
Average Effective Maturity (m) | 10.1 yrs. |
United States | 40.8% |
Japan | 12.7% |
Italy | 11.6% |
Spain | 9.6% |
United Kingdom | 6.8% |
Canada | 3.4% |
Australia | 3.0% |
Norway | 2.0% |
Germany | 1.8% |
Other Countries | 8.3% |
United States Dollar | 47.6% |
Euro | 23.5% |
Japanese Yen | 18.4% |
British Pound Sterling | 5.9% |
Australian Dollar | 2.8% |
Canadian Dollar | 2.0% |
Danish Krone | 0.3% |
Uruguay Peso | 0.3% |
New Zealand Dollar | (1.0)% |
Other Currencies | 0.2% |
(a) | For all securities other than those specifically described below, ratings are assigned to underlying securities utilizing ratings from Moody’s, Fitch, and Standard & Poor’s rating agencies and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. If none of the 3 rating agencies above assign a rating, but the security is rated by DBRS Morningstar, then the DBRS Morningstar rating is assigned. If none of the 4 rating agencies listed above rate the security, but the security is rated by the Kroll Bond Rating Agency (KBRA), then the KBRA rating is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). Securities rated BBB or higher are considered investment grade. All ratings are subject to change. U.S. Government includes securities issued by the U.S. Department of the Treasury. Federal Agencies includes rated and unrated U.S. Agency fixed-income securities, U.S. Agency mortgage-backed securities, and collateralized mortgage obligations of U.S. Agency mortgage-backed securities. Not Rated includes fixed income securities and fixed income derivatives that have not been rated by any rating agency. The fund may or may not have held all of these instruments on this date. The fund is not rated by these agencies. |
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value due to the interest rate move. |
(i) | For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining each instrument’s effective maturity for purposes of calculating the fund’s dollar-weighted average effective maturity, MFS uses the instrument’s stated maturity or, if applicable, an earlier date on which MFS believes it is probable that a maturity-shortening device (such as a put, pre-refunding or prepayment) will cause the instrument to be repaid. Such an earlier date can be substantially shorter than the instrument’s stated maturity. |
(o) | Less than 0.1%. |
(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. |
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value. |
(y) | A yield curve graphically depicts the yields of different maturity bonds of the same credit quality and type; a normal yield curve is upward sloping, with short-term rates lower than long-term rates. |
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr |
Initial Class | 5/16/88 | (7.43)% | 2.82% | 0.65% |
Service Class | 8/24/01 | (7.72)% | 2.55% | 0.39% |
JPMorgan Global Government Bond Index (Unhedged) (f) | (6.50)% | 2.90% | 1.06% |
(f) | Source: FactSet Research Systems Inc. |
July 1, 2021 through December 31, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 7/01/21 | Ending Account Value 12/31/21 | Expenses Paid During Period (p) 7/01/21-12/31/21 | |
Initial Class | Actual | 0.76% | $1,000.00 | $974.05 | $3.78 |
Hypothetical (h) | 0.76% | $1,000.00 | $1,021.37 | $3.87 | |
Service Class | Actual | 1.01% | $1,000.00 | $971.95 | $5.02 |
Hypothetical (h) | 1.01% | $1,000.00 | $1,020.11 | $5.14 |
(h) | 5% fund return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Bonds – 95.0% | ||||
Foreign Bonds – 59.0% | ||||
Australia – 3.0% | ||||
Commonwealth of Australia, 5.5%, 4/21/2023 | AUD | 750,000 | $ 581,853 | |
Commonwealth of Australia, 1%, 12/21/2030 | 1,950,000 | 1,343,585 | ||
Commonwealth of Australia, 3.25%, 6/21/2039 | 2,065,000 | 1,741,646 | ||
Commonwealth of Australia, 1.75%, 6/21/2051 | 125,000 | 78,843 | ||
$3,745,927 | ||||
Belgium – 1.6% | ||||
Kingdom of Belgium, 0.4%, 6/22/2040 (n) | EUR | 1,075,000 | $ 1,163,753 | |
Kingdom of Belgium, 1.6%, 6/22/2047 | 355,000 | 471,531 | ||
Kingdom of Belgium, 2.15%, 6/22/2066 | 200,000 | 316,643 | ||
$1,951,927 | ||||
Canada – 3.4% | ||||
Government of Canada, 0.25%, 8/01/2022 | CAD | 2,850,000 | $ 2,250,102 | |
Government of Canada, 0.25%, 2/01/2023 | 1,700,000 | 1,336,495 | ||
Province of Ontario, 1.8%, 10/14/2031 | $ | 250,000 | 248,593 | |
Province of Ontario, 1.9%, 12/02/2051 | CAD | 600,000 | 419,452 | |
$4,254,642 | ||||
Cote d'Ivoire – 0.1% | ||||
Republic of Cote d'Ivoire, 6.875%, 10/17/2040 | EUR | 100,000 | $ 118,691 | |
France – 1.0% | ||||
Republic of France, 0.75%, 5/25/2028 | EUR | 850,000 | $ 1,025,428 | |
Republic of France, 4%, 4/25/2055 (n) | 115,000 | 246,470 | ||
$1,271,898 | ||||
Germany – 1.8% | ||||
Government of Germany, 0%, 2/15/2031 | EUR | 1,370,000 | $ 1,591,551 | |
Government of Germany, 0%, 8/15/2050 | 300,000 | 330,865 | ||
Landwirtschaftliche Rentenbank (Federal Republic of Germany), 0.5%, 5/27/2025 | $ | 300,000 | 293,624 | |
$2,216,040 | ||||
Greece – 1.4% | ||||
Hellenic Republic (Republic of Greece), 4.375%, 8/01/2022 | EUR | 1,500,000 | $ 1,753,432 | |
Italy – 11.5% | ||||
Republic of Italy, 0.95%, 3/15/2023 | EUR | 1,500,000 | $ 1,735,138 | |
Republic of Italy, 0.35%, 2/01/2025 | 3,200,000 | 3,670,180 | ||
Republic of Italy, 2%, 2/01/2028 | 3,190,000 | 3,932,884 | ||
Republic of Italy, 3.5%, 3/01/2030 | 2,685,000 | 3,688,727 | ||
Republic of Italy, 2.45%, 9/01/2033 | 570,000 | 730,780 | ||
Republic of Italy, 5%, 9/01/2040 | 128,000 | 223,889 | ||
Republic of Italy, 1.7%, 9/01/2051 | 180,000 | 192,017 | ||
$14,173,615 | ||||
Japan – 12.7% | ||||
Government of Japan, 0.8%, 6/20/2023 | JPY | 60,000,000 | $ 528,394 | |
Government of Japan, 1.7%, 12/20/2031 | 627,000,000 | 6,321,619 | ||
Government of Japan, 0.4%, 9/20/2040 | 535,000,000 | 4,608,497 | ||
Government of Japan, 1.5%, 12/20/2044 | 110,000,000 | 1,152,786 | ||
Government of Japan, 0.6%, 9/20/2050 | 150,000,000 | 1,278,058 | ||
Government of Japan, 0.4%, 3/20/2056 | 90,000,000 | 709,226 | ||
Japan Bank for International Cooperation, 0.625%, 7/15/2025 | $ | 300,000 | 293,205 | |
Japan Finance Organization for Municipalities, 0.625%, 9/02/2025 (n) | 250,000 | 243,307 | ||
Japan International Cooperation Agency, 1%, 7/22/2030 | 250,000 | 238,586 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Foreign Bonds – continued | ||||
Japan – continued | ||||
Tokyo Metropolitan Government , 0.75%, 7/16/2025 (n) | $ | 250,000 | $ 244,263 | |
$15,617,941 | ||||
New Zealand – 0.9% | ||||
Government of New Zealand, 5.5%, 4/15/2023 | NZD | 1,600,000 | $ 1,150,391 | |
Norway – 2.0% | ||||
City of Oslo, 1.6%, 5/05/2022 | NOK | 6,000,000 | $ 682,544 | |
Kingdom of Norway, 2%, 5/24/2023 (n) | 15,000,000 | 1,723,179 | ||
$2,405,723 | ||||
Saudi Arabia – 0.2% | ||||
Kingdom of Saudi Arabia, 2.25%, 2/02/2033 (n) | $ | 200,000 | $ 194,952 | |
Serbia – 0.2% | ||||
Republic of Serbia, 2.125%, 12/01/2030 (n) | $ | 200,000 | $ 187,140 | |
South Africa – 0.4% | ||||
Republic of South Africa, 8.25%, 3/31/2032 | ZAR | 9,000,000 | $ 509,440 | |
South Korea – 0.5% | ||||
Republic of Korea, 0.875%, 12/10/2023 | KRW | 750,000,000 | $ 621,400 | |
Spain – 9.5% | ||||
Kingdom of Spain, 0.4%, 4/30/2022 | EUR | 500,000 | $ 571,322 | |
Kingdom of Spain, 0.35%, 7/30/2023 | 2,600,000 | 3,003,233 | ||
Kingdom of Spain, 3.8%, 4/30/2024 | 1,000,000 | 1,253,372 | ||
Kingdom of Spain, 0.1%, 4/30/2031 (n) | 4,725,000 | 5,188,979 | ||
Kingdom of Spain, 4.7%, 7/30/2041 | 215,000 | 402,134 | ||
Kingdom of Spain, 5.15%, 10/31/2044 | 555,000 | 1,137,513 | ||
United Mexican States, 1%, 10/31/2050 | 200,000 | 206,679 | ||
$11,763,232 | ||||
Supranational – 0.4% | ||||
Corporacion Andina de Fomento, 1.625%, 9/23/2025 | $ | 300,000 | $ 299,482 | |
Inter-American Development Bank, 0.625%, 7/15/2025 | 250,000 | 245,272 | ||
$544,754 | ||||
Sweden – 1.3% | ||||
Kingdom of Sweden, 0.75%, 11/12/2029 | SEK | 8,345,000 | $ 965,749 | |
Kommuninvest I Sverige AB, 0.375%, 2/16/2024 (n) | $ | 300,000 | 296,905 | |
Swedish Export Credit Corp., 0.625%, 5/14/2025 | 300,000 | 294,156 | ||
$1,556,810 | ||||
United Kingdom – 6.8% | ||||
United Kingdom Treasury, 0.75%, 7/22/2023 | GBP | 1,000,000 | $ 1,358,565 | |
United Kingdom Treasury, 4.75%, 12/07/2030 | 1,515,000 | 2,725,922 | ||
United Kingdom Treasury, 1.75%, 9/07/2037 | 455,000 | 667,455 | ||
United Kingdom Treasury, 3.25%, 1/22/2044 | 270,000 | 511,033 | ||
United Kingdom Treasury, 4.25%, 12/07/2046 | 125,000 | 280,498 | ||
United Kingdom Treasury, 4.25%, 12/07/2049 | 535,000 | 1,260,436 | ||
United Kingdom Treasury, 3.75%, 7/22/2052 | 214,000 | 485,254 | ||
United Kingdom Treasury, 4%, 1/22/2060 | 195,000 | 512,786 | ||
United Kingdom Treasury, 3.5%, 7/22/2068 | 230,000 | 609,428 | ||
$8,411,377 | ||||
Uruguay – 0.3% | ||||
Oriental Republic of Uruguay, 8.25%, 5/21/2031 | UYU | 15,991,000 | $ 344,182 | |
Total Foreign Bonds | $ 72,793,514 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
U.S. Bonds – 36.0% | ||||
Asset-Backed & Securitized – 1.3% | ||||
3650R Commercial Mortgage Trust, 2021-PF1, “XA”, 1.038%, 11/15/2054 (i) | $ | 1,039,900 | $ 75,773 | |
Arbor Multifamily Mortgage Securities, 2021-MF3, “XA”, 0.742%, 10/15/2054 (i)(n) | 3,167,404 | 172,690 | ||
Cantor Commercial Real Estate, 2019-CF3, “A4”, 3.005%, 1/15/2053 | 315,000 | 332,017 | ||
Citigroup Commercial Mortgage Trust, 2019-C7, “A4”, 3.102%, 12/15/2072 | 233,275 | 248,200 | ||
Commercial Mortgage Pass-Through Certificates, 2019-BN24, “A3”, 2.96%, 11/15/2062 | 170,384 | 180,426 | ||
Morgan Stanley Capital I Trust, 2021-L7, “XA”, 1.107%, 10/15/2054 (i) | 3,827,713 | 302,294 | ||
ReadyCap Commercial Mortgage Trust, 2021-FL7, “A”, FLR, 1.28% (LIBOR - 1mo. + 1.2%), 11/25/2036 (z) | 194,989 | 194,870 | ||
ReadyCap Commercial Mortgage Trust, 2021-FL7, “AS”, FLR, 1.58% (LIBOR - 1mo. + 1.5%), 11/25/2036 (z) | 100,000 | 99,907 | ||
$1,606,177 | ||||
Consumer Services – 0.1% | ||||
Conservation Fund, 3.474%, 12/15/2029 | $ | 158,000 | $ 166,757 | |
Industrial – 0.1% | ||||
Howard University, Washington D.C., 2.738%, 10/01/2022 | $ | 28,000 | $ 28,173 | |
Howard University, Washington D.C., 2.801%, 10/01/2023 | 30,000 | 30,666 | ||
Howard University, Washington D.C., AGM, 2.416%, 10/01/2024 | 33,000 | 33,637 | ||
Howard University, Washington D.C., AGM, 2.516%, 10/01/2025 | 42,000 | 42,359 | ||
$134,835 | ||||
Mortgage-Backed – 0.3% | ||||
Freddie Mac, 1.169%, 9/25/2030 (i) | $ | 329,805 | $ 30,762 | |
Freddie Mac, 0.536%, 9/25/2031 (i) | 2,295,212 | 111,712 | ||
Freddie Mac, 0.855%, 9/25/2031 (i) | 706,831 | 53,349 | ||
Freddie Mac, 0.349%, 11/25/2031 (i) | 3,422,551 | 111,472 | ||
Freddie Mac, 0.567%, 12/25/2031 (i) | 568,544 | 28,337 | ||
$335,632 | ||||
Municipals – 1.0% | ||||
California Earthquake Authority Rev., “B”, 1.477%, 7/01/2023 | $ | 60,000 | $ 60,533 | |
Chicago, IL, Board of Education, “E”, BAM, 6.138%, 12/01/2039 | 250,000 | 335,415 | ||
Illinois Sales Tax Securitization Corp., Second Lien, “B”, BAM, 3.411%, 1/01/2043 | 240,000 | 256,213 | ||
Massachusetts Educational Financing Authority, Education Loan Rev., “A”, 2.562%, 7/01/2026 | 20,000 | 20,622 | ||
Massachusetts Educational Financing Authority, Education Loan Rev., “A”, 2.682%, 7/01/2027 | 100,000 | 103,673 | ||
Michigan Finance Authority Hospital Rev. (Trinity Health Credit Group), 3.384%, 12/01/2040 | 285,000 | 310,282 | ||
West Virginia Tobacco Settlement Financing Authority Asset-Backed Refunding, “A-1”, 1.497%, 6/01/2024 | 80,000 | 80,044 | ||
West Virginia Tobacco Settlement Financing Authority Asset-Backed Refunding, “A-1”, 1.647%, 6/01/2025 | 65,000 | 64,699 | ||
$1,231,481 | ||||
U.S. Government Agencies and Equivalents – 0.3% | ||||
Small Business Administration, 4.57%, 6/01/2025 | $ | 1,557 | $ 1,606 | |
Small Business Administration, 5.09%, 10/01/2025 | 1,625 | 1,690 | ||
Small Business Administration, 5.21%, 1/01/2026 | 21,650 | 22,636 | ||
Small Business Administration, 2.22%, 3/01/2033 | 289,402 | 293,176 | ||
$319,108 | ||||
U.S. Treasury Obligations – 32.9% | ||||
U.S. Treasury Bonds, 4.5%, 8/15/2039 | $ | 2,931,400 | $ 4,139,687 | |
U.S. Treasury Bonds, 2.75%, 11/15/2042 | 2,111,000 | 2,405,880 | ||
U.S. Treasury Bonds, 3.625%, 2/15/2044 | 1,180,000 | 1,535,613 | ||
U.S. Treasury Bonds, 3%, 2/15/2048 | 810,000 | 988,643 | ||
U.S. Treasury Bonds, 3%, 2/15/2049 | 3,320,000 | 4,081,784 | ||
U.S. Treasury Notes, 1.625%, 4/30/2023 | 5,350,000 | 5,427,115 | ||
U.S. Treasury Notes, 0.125%, 1/15/2024 | 7,400,000 | 7,306,633 | ||
U.S. Treasury Notes, 2.125%, 5/15/2025 | 8,570,700 | 8,871,679 | ||
U.S. Treasury Notes, 2.875%, 8/15/2028 | 4,850,000 | 5,296,731 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
U.S. Bonds – continued | ||||
U.S. Treasury Obligations – continued | ||||
U.S. Treasury Notes, 1.25%, 8/15/2031 | $ | 550,000 | $ 537,711 | |
$40,591,476 | ||||
Total U.S. Bonds | $ 44,385,466 | |||
Total Bonds (Identified Cost, $117,338,596) | $ 117,178,980 | |||
Investment Companies (h) – 4.3% | ||||
Money Market Funds – 4.3% | ||||
MFS Institutional Money Market Portfolio, 0.07% (v) (Identified Cost, $5,318,456) | 5,318,456 | $ 5,318,456 | ||
Other Assets, Less Liabilities – 0.7% | 924,674 | |||
Net Assets – 100.0% | $ 123,422,110 |
(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 $5,318,456 and $117,178,980, respectively. |
(i) | Interest only security for which the fund receives interest on notional principal (Par amount). Par amount shown is the notional principal and does not reflect the cost of the security. |
(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 $9,661,638, representing 7.8% of net assets. |
(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. |
(z) | Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. The fund holds the following restricted securities: |
Restricted Securities | Acquisition Date | Cost | Value |
ReadyCap Commercial Mortgage Trust, 2021-FL7, “A”, FLR, 1.28% (LIBOR - 1mo. + 1.2%), 11/25/2036 | 11/12/21 | $194,989 | $194,870 |
ReadyCap Commercial Mortgage Trust, 2021-FL7, “AS”, FLR, 1.58% (LIBOR - 1mo. + 1.5%), 11/25/2036 | 11/12/21 | 100,000 | 99,907 |
Total Restricted Securities | $294,777 | ||
% of Net assets | 0.2% |
The following abbreviations are used in this report and are defined: | |
AGM | Assured Guaranty Municipal |
BAM | Build America Mutual |
FLR | Floating Rate. Interest rate resets periodically based on the parenthetically disclosed reference rate plus a spread (if any). The period-end rate reported may not be the current rate. All reference rates are USD unless otherwise noted. |
LIBOR | London Interbank Offered Rate |
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: | |
AUD | Australian Dollar |
BRL | Brazilian Real |
CAD | Canadian Dollar |
CLP | Chilean Peso |
CZK | Czech Koruna |
DKK | Danish Krone |
EUR | Euro |
GBP | British Pound |
JPY | Japanese Yen |
KRW | South Korean Won |
NOK | Norwegian Krone |
NZD | New Zealand Dollar |
SEK | Swedish Krona |
TWD | Taiwan Dollar |
UYU | Uruguayan Peso |
ZAR | South African Rand |
Derivative Contracts at 12/31/21 | ||||||
Forward Foreign Currency Exchange Contracts | ||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||
Asset Derivatives | ||||||
AUD | 1,346,506 | USD | 979,571 | Morgan Stanley Capital Services, Inc. | 1/14/2022 | $ 104 |
AUD | 2,507,000 | USD | 1,788,114 | State Street Bank Corp. | 1/14/2022 | 35,901 |
CZK | 13,549,000 | USD | 613,607 | Goldman Sachs International | 1/14/2022 | 5,916 |
EUR | 318,128 | USD | 358,107 | Barclays Bank PLC | 1/14/2022 | 4,153 |
EUR | 664,457 | USD | 748,541 | Brown Brothers Harriman | 1/14/2022 | 8,092 |
EUR | 2,556,613 | USD | 2,896,084 | Goldman Sachs International | 1/14/2022 | 15,191 |
EUR | 697,248 | USD | 792,278 | JPMorgan Chase Bank N.A. | 1/14/2022 | 1,695 |
GBP | 479,000 | USD | 646,315 | Brown Brothers Harriman | 1/14/2022 | 2,023 |
GBP | 432,000 | USD | 575,549 | Morgan Stanley Capital Services, Inc. | 1/14/2022 | 9,173 |
USD | 1,184,809 | AUD | 1,600,000 | Deutsche Bank AG | 4/08/2022 | 20,422 |
USD | 817,574 | AUD | 1,096,434 | Morgan Stanley Capital Services, Inc. | 1/14/2022 | 19,842 |
USD | 1,169,877 | AUD | 1,560,480 | State Street Bank Corp. | 1/14/2022 | 34,522 |
USD | 2,519,648 | CAD | 3,164,496 | HSBC Bank | 1/14/2022 | 17,990 |
USD | 2,554,829 | CAD | 3,159,499 | Morgan Stanley Capital Services, Inc. | 1/14/2022 | 57,121 |
USD | 603 | CLP | 494,000 | Goldman Sachs International | 2/18/2022 | 27 |
USD | 37,561 | DKK | 241,000 | State Street Bank Corp. | 1/14/2022 | 658 |
USD | 786,851 | EUR | 676,811 | Barclays Bank PLC | 4/12/2022 | 14,650 |
USD | 491,035 | EUR | 422,345 | Citibank N.A. | 1/14/2022 | 10,100 |
USD | 2,011,112 | EUR | 1,736,022 | Deutsche Bank AG | 1/14/2022 | 34,264 |
USD | 18,820,098 | EUR | 16,264,015 | Morgan Stanley Capital Services, Inc. | 1/14/2022 | 299,881 |
USD | 1,849,453 | EUR | 1,592,864 | UBS AG | 1/14/2022 | 35,620 |
USD | 5,364,067 | GBP | 3,911,405 | Deutsche Bank AG | 1/14/2022 | 69,887 |
USD | 602,690 | GBP | 438,595 | Merrill Lynch International | 1/14/2022 | 9,041 |
USD | 1,336,158 | JPY | 151,433,064 | Deutsche Bank AG | 1/14/2022 | 19,610 |
USD | 470,101 | JPY | 53,972,000 | JPMorgan Chase Bank N.A. | 1/14/2022 | 873 |
USD | 274,395 | JPY | 30,952,000 | State Street Bank Corp. | 1/14/2022 | 5,300 |
USD | 1,226,202 | NOK | 10,348,035 | Deutsche Bank AG | 1/14/2022 | 51,384 |
USD | 1,265,670 | NOK | 10,637,000 | Morgan Stanley Capital Services, Inc. | 1/14/2022 | 58,046 |
USD | 50,147 | NOK | 429,000 | State Street Bank Corp. | 1/14/2022 | 1,442 |
USD | 613,904 | NZD | 881,703 | Goldman Sachs International | 1/14/2022 | 10,078 |
USD | 602,134 | NZD | 852,721 | JPMorgan Chase Bank N.A. | 1/14/2022 | 18,155 |
USD | 1,251,410 | NZD | 1,768,000 | Morgan Stanley Capital Services, Inc. | 1/14/2022 | 40,611 |
USD | 3,506,341 | SEK | 30,835,950 | JPMorgan Chase Bank N.A. | 1/14/2022 | 93,575 |
USD | 1,240,569 | SEK | 10,913,000 | Morgan Stanley Capital Services, Inc. | 1/14/2022 | 32,774 |
USD | 1,250,703 | SEK | 10,727,000 | State Street Bank Corp. | 1/14/2022 | 63,494 |
USD | 1,050 | TWD | 29,000 | JPMorgan Chase Bank N.A. | 2/18/2022 | 2 |
USD | 543,147 | ZAR | 8,360,013 | State Street Bank Corp. | 1/14/2022 | 19,237 |
$ 1,120,854 | ||||||
Liability Derivatives | ||||||
AUD | 831,000 | USD | 624,440 | Brown Brothers Harriman | 1/14/2022 | $ (19,831) |
AUD | 2,555,000 | USD | 1,885,476 | Deutsche Bank AG | 1/14/2022 | (26,538) |
AUD | 846,000 | USD | 621,998 | JPMorgan Chase Bank N.A. | 1/14/2022 | (6,475) |
AUD | 1,468,452 | USD | 1,099,243 | Morgan Stanley Capital Services, Inc. | 1/14/2022 | (30,843) |
AUD | 998,000 | USD | 730,675 | State Street Bank Corp. | 1/14/2022 | (4,562) |
Forward Foreign Currency Exchange Contracts - continued | ||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||
Liability Derivatives - continued | ||||||
CAD | 847,000 | USD | 679,795 | BNP Paribas S.A. | 1/14/2022 | $ (10,209) |
CAD | 950,405 | USD | 769,121 | Deutsche Bank AG | 1/14/2022 | (17,788) |
CAD | 773,000 | USD | 625,670 | Goldman Sachs International | 1/14/2022 | (14,583) |
CAD | 1,881,610 | USD | 1,524,797 | HSBC Bank | 1/14/2022 | (37,311) |
DKK | 2,939,237 | USD | 457,052 | Morgan Stanley Capital Services, Inc. | 1/14/2022 | (6,987) |
EUR | 1,330,739 | USD | 1,527,157 | Brown Brothers Harriman | 1/14/2022 | (11,812) |
EUR | 3,384,466 | USD | 3,901,293 | Deutsche Bank AG | 1/14/2022 | (47,322) |
EUR | 556,505 | USD | 651,525 | HSBC Bank | 1/14/2022 | (17,820) |
EUR | 3,300,180 | USD | 3,847,827 | JPMorgan Chase Bank N.A. | 1/14/2022 | (89,833) |
EUR | 1,678,476 | USD | 1,943,461 | Morgan Stanley Capital Services, Inc. | 1/14/2022 | (32,141) |
EUR | 1,600,000 | USD | 1,822,979 | State Street Bank Corp. | 1/14/2022 | (1,021) |
EUR | 1,897,876 | USD | 2,201,212 | UBS AG | 1/14/2022 | (40,055) |
GBP | 4,160,823 | USD | 5,663,585 | State Street Bank Corp. | 1/14/2022 | (31,811) |
JPY | 181,819,792 | USD | 1,596,408 | Brown Brothers Harriman | 1/14/2022 | (15,681) |
JPY | 106,529,000 | USD | 941,530 | HSBC Bank | 1/14/2022 | (15,375) |
JPY | 915,247,373 | USD | 8,237,808 | JPMorgan Chase Bank N.A. | 1/14/2022 | (280,718) |
NZD | 1,765,000 | USD | 1,234,343 | State Street Bank Corp. | 1/14/2022 | (25,599) |
SEK | 10,867,000 | USD | 1,259,920 | Brown Brothers Harriman | 1/14/2022 | (57,216) |
SEK | 7,869,000 | USD | 908,098 | Deutsche Bank AG | 1/14/2022 | (37,197) |
SEK | 21,403,602 | USD | 2,412,268 | Goldman Sachs International | 1/14/2022 | (43,426) |
SEK | 5,716,000 | USD | 654,785 | JPMorgan Chase Bank N.A. | 1/14/2022 | (22,168) |
ZAR | 371,000 | USD | 25,426 | Brown Brothers Harriman | 1/14/2022 | (2,176) |
USD | 3,030,160 | AUD | 4,189,376 | Morgan Stanley Capital Services, Inc. | 1/14/2022 | (17,898) |
USD | 1,855,413 | AUD | 2,563,000 | State Street Bank Corp. | 1/14/2022 | (9,345) |
USD | 18,098 | BRL | 103,465 | JPMorgan Chase Bank N.A. | 3/03/2022 | (222) |
USD | 602,655 | CZK | 13,549,000 | Morgan Stanley Capital Services, Inc. | 1/14/2022 | (16,869) |
USD | 534,140 | EUR | 470,000 | BNP Paribas S.A. | 1/14/2022 | (1,060) |
USD | 87,488 | EUR | 77,000 | Brown Brothers Harriman | 1/14/2022 | (194) |
USD | 372,536 | EUR | 330,000 | UBS AG | 1/14/2022 | (3,242) |
USD | 584,866 | GBP | 434,000 | JPMorgan Chase Bank N.A. | 1/14/2022 | (2,563) |
USD | 613,965 | GBP | 460,000 | Morgan Stanley Capital Services, Inc. | 1/14/2022 | (8,656) |
USD | 930,435 | GBP | 703,000 | State Street Bank Corp. | 1/14/2022 | (21,091) |
USD | 307,857 | JPY | 35,471,000 | HSBC Bank | 1/14/2022 | (525) |
USD | 624,100 | KRW | 743,492,202 | Morgan Stanley Capital Services, Inc. | 2/16/2022 | (747) |
USD | 1,232,657 | NZD | 1,828,000 | JPMorgan Chase Bank N.A. | 1/14/2022 | (19,233) |
$(1,048,143) |
Financial Statements | Statement of Assets and Liabilities |
At 12/31/21Assets | |
Investments in unaffiliated issuers, at value (identified cost, $117,338,596) | $117,178,980 |
Investments in affiliated issuers, at value (identified cost, $5,318,456) | 5,318,456 |
Foreign currency, at value (identified cost, $19) | 20 |
Restricted cash for | |
Forward foreign currency exchange contracts | 330,000 |
Receivables for | |
Forward foreign currency exchange contracts | 1,120,854 |
Fund shares sold | 20,368 |
Interest | 555,311 |
Receivable from investment adviser | 15,975 |
Other assets | 876 |
Total assets | $124,540,840 |
Liabilities | |
Payables for | |
Forward foreign currency exchange contracts | $1,048,143 |
Fund shares reacquired | 463 |
Payable to affiliates | |
Administrative services fee | 149 |
Shareholder servicing costs | 12 |
Distribution and/or service fees | 11 |
Payable for independent Trustees' compensation | 99 |
Accrued expenses and other liabilities | 69,853 |
Total liabilities | $1,118,730 |
Net assets | $123,422,110 |
Net assets consist of | |
Paid-in capital | $124,615,183 |
Total distributable earnings (loss) | (1,193,073) |
Net assets | $123,422,110 |
Shares of beneficial interest outstanding | 11,681,383 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $122,645,602 | 11,606,381 | $10.57 |
Service Class | 776,508 | 75,002 | 10.35 |
Financial Statements | Statement of Operations |
Year ended 12/31/21 | |
Net investment income (loss) | |
Income | |
Interest | $1,357,419 |
Dividends from affiliated issuers | 2,531 |
Other | 29 |
Foreign taxes withheld | (2,812) |
Total investment income | $1,357,167 |
Expenses | |
Management fee | $952,272 |
Distribution and/or service fees | 1,977 |
Shareholder servicing costs | 2,246 |
Administrative services fee | 27,467 |
Independent Trustees' compensation | 4,046 |
Custodian fee | 31,768 |
Shareholder communications | 5,800 |
Audit and tax fees | 77,378 |
Legal fees | 675 |
Miscellaneous | 32,363 |
Total expenses | $1,135,992 |
Reduction of expenses by investment adviser | (167,846) |
Net expenses | $968,146 |
Net investment income (loss) | $389,021 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers (net of $514 country tax) | $1,852,530 |
Futures contracts | (58,375) |
Forward foreign currency exchange contracts | (389,484) |
Foreign currency | 15,892 |
Net realized gain (loss) | $1,420,563 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $(11,947,548) |
Futures contracts | 8,295 |
Forward foreign currency exchange contracts | 253,018 |
Translation of assets and liabilities in foreign currencies | (36,218) |
Net unrealized gain (loss) | $(11,722,453) |
Net realized and unrealized gain (loss) | $(10,301,890) |
Change in net assets from operations | $(9,912,869) |
Financial Statements | Statements of Changes in Net Assets |
Year ended | ||
12/31/21 | 12/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $389,021 | $565,320 |
Net realized gain (loss) | 1,420,563 | 4,900,087 |
Net unrealized gain (loss) | (11,722,453) | 6,923,550 |
Change in net assets from operations | $(9,912,869) | $12,388,957 |
Total distributions to shareholders | $(2,960,087) | $(1,660,302) |
Change in net assets from fund share transactions | $6,053,242 | $(10,857,191) |
Total change in net assets | $(6,819,714) | $(128,536) |
Net assets | ||
At beginning of period | 130,241,824 | 130,370,360 |
At end of period | $123,422,110 | $130,241,824 |
Financial Statements | Financial Highlights |
Initial Class | Year ended | ||||
12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $11.69 | $10.71 | $10.34 | $10.56 | $9.87 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.03 | $0.05 | $0.11 | $0.11 | $0.08 |
Net realized and unrealized gain (loss) | (0.89) | 1.08 | 0.53 | (0.23) | 0.61 |
Total from investment operations | $(0.86) | $1.13 | $0.64 | $(0.12) | $0.69 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.26) | $(0.15) | $(0.27) | $(0.10) | $— |
Net asset value, end of period (x) | $10.57 | $11.69 | $10.71 | $10.34 | $10.56 |
Total return (%) (k)(r)(s)(x) | (7.43) | 10.60 | 6.08 | (1.11) | 6.99 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.89 | 0.90 | 0.88 | 0.87 | 0.86 |
Expenses after expense reductions | 0.76 | 0.83 | 0.87 | 0.86 | 0.85 |
Net investment income (loss) | 0.31 | 0.46 | 1.01 | 1.05 | 0.77 |
Portfolio turnover | 132 | 98 | 107 | 79 | 67 |
Net assets at end of period (000 omitted) | $122,646 | $129,401 | $129,565 | $135,008 | $159,652 |
Service Class | Year ended | ||||
12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $11.46 | $10.50 | $10.14 | $10.34 | $9.69 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.01 | $0.02 | $0.08 | $0.08 | $0.05 |
Net realized and unrealized gain (loss) | (0.89) | 1.06 | 0.51 | (0.22) | 0.60 |
Total from investment operations | $(0.88) | $1.08 | $0.59 | $(0.14) | $0.65 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.23) | $(0.12) | $(0.23) | $(0.06) | $— |
Net asset value, end of period (x) | $10.35 | $11.46 | $10.50 | $10.14 | $10.34 |
Total return (%) (k)(r)(s)(x) | (7.72) | 10.35 | 5.79 | (1.32) | 6.71 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 1.14 | 1.15 | 1.13 | 1.12 | 1.11 |
Expenses after expense reductions | 1.01 | 1.08 | 1.12 | 1.11 | 1.10 |
Net investment income (loss) | 0.06 | 0.20 | 0.76 | 0.80 | 0.52 |
Portfolio turnover | 132 | 98 | 107 | 79 | 67 |
Net assets at end of period (000 omitted) | $777 | $841 | $806 | $826 | $1,034 |
(d) | Per share data is based on average shares outstanding. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(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 |
U.S. Treasury Bonds & U.S. Government Agencies & Equivalents | $— | $40,910,584 | $— | $40,910,584 |
Non - U.S. Sovereign Debt | — | 70,901,757 | — | 70,901,757 |
Municipal Bonds | — | 1,231,481 | — | 1,231,481 |
U.S. Corporate Bonds | — | 301,592 | — | 301,592 |
Residential Mortgage-Backed Securities | — | 335,631 | — | 335,631 |
Commercial Mortgage-Backed Securities | — | 1,311,400 | — | 1,311,400 |
Asset-Backed Securities (including CDOs) | — | 294,777 | — | 294,777 |
Foreign Bonds | — | 1,891,758 | — | 1,891,758 |
Mutual Funds | 5,318,456 | — | — | 5,318,456 |
Total | $5,318,456 | $117,178,980 | $— | $122,497,436 |
Other Financial Instruments | ||||
Forward Foreign Currency Exchange Contracts – Assets | $— | $1,120,854 | $— | $1,120,854 |
Forward Foreign Currency Exchange Contracts – Liabilities | — | (1,048,143) | — | (1,048,143) |
Fair Value | |||
Risk | Derivative Contracts | Asset Derivatives | Liability Derivatives |
Foreign Exchange | Forward Foreign Currency Exchange Contracts | $1,120,854 | $(1,048,143) |
Risk | Futures Contracts | Forward Foreign Currency Exchange Contracts |
Interest Rate | $(58,375) | $— |
Foreign Exchange | — | (389,484) |
Total | $(58,375) | $(389,484) |
Risk | Futures Contracts | Forward Foreign Currency Exchange Contracts |
Interest Rate | $8,295 | $— |
Foreign Exchange | — | 253,018 |
Total | $8,295 | $253,018 |
Year ended 12/31/21 | Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $2,960,087 | $1,660,302 |
As of 12/31/21 | |
Cost of investments | $124,781,451 |
Gross appreciation | 2,573,643 |
Gross depreciation | (4,784,947) |
Net unrealized appreciation (depreciation) | $(2,211,304) |
Undistributed ordinary income | 1,545,805 |
Capital loss carryforwards | (522,529) |
Other temporary differences | (5,045) |
Total distributable earnings (loss) | $(1,193,073) |
Short-Term | $(522,529) |
Year ended 12/31/21 | Year ended 12/31/20 | ||
Initial Class | $2,943,258 | $1,651,619 | |
Service Class | 16,829 | 8,683 | |
Total | $2,960,087 | $1,660,302 |
Up to $300 million | 0.75% |
In excess of $300 million and up to $1 billion | 0.675% |
In excess of $1 billion | 0.625% |
Purchases | Sales | |
U.S. Government securities | $48,673,217 | $45,993,622 |
Non-U.S. Government securities | 114,718,002 | 114,038,951 |
Year ended 12/31/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 537,565 | $6,073,303 | 1,052,245 | $11,850,341 | |
Service Class | 7,112 | 77,014 | 7,826 | 87,385 | |
544,677 | $6,150,317 | 1,060,071 | $11,937,726 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | 269,529 | $2,943,258 | 145,517 | $1,651,619 | |
Service Class | 1,573 | 16,829 | 779 | 8,683 | |
271,102 | $2,960,087 | 146,296 | $1,660,302 | ||
Shares reacquired | |||||
Initial Class | (268,769) | $(2,979,729) | (2,224,850) | $(24,324,361) | |
Service Class | (7,050) | (77,433) | (11,946) | (130,858) | |
(275,819) | $(3,057,162) | (2,236,796) | $(24,455,219) |
Year ended 12/31/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Net change | |||||
Initial Class | 538,325 | $6,036,832 | (1,027,088) | $(10,822,401) | |
Service Class | 1,635 | 16,410 | (3,341) | (34,790) | |
539,960 | $6,053,242 | (1,030,429) | $(10,857,191) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $2,150,119 | $84,309,023 | $81,140,686 | $— | $— | $5,318,456 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $2,531 | $— |
February 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 | 135 | 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 | 135 | Private investor | N/A | |||||
Steven E. Buller (age 70) | Trustee | February 2014 | 135 | Private investor | N/A | |||||
John A. Caroselli (age 67) | Trustee | March 2017 | 135 | Private investor; JC Global Advisors, LLC (management consulting), President (since 2015) | N/A | |||||
Maureen R. Goldfarb (age 66) | Trustee | January 2009 | 135 | Private investor | N/A | |||||
Peter D. Jones (age 66) | Trustee | January 2019 | 135 | Private investor | N/A | |||||
James W. Kilman, Jr. (age 60) | Trustee | January 2019 | 135 | 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) | |||||
Clarence Otis, Jr. (age 65) | Trustee | March 2017 | 135 | Private investor | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director | |||||
Maryanne L. Roepke (age 65) | Trustee | May 2014 | 135 | Private investor | N/A | |||||
Laurie J. Thomsen (age 64) | Trustee | March 2005 | 135 | 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 | 135 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | ||||
Kino Clark (k) (age 53) | Assistant Treasurer | January 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
John W. Clark, Jr. (k) (age 54) | Assistant Treasurer | April 2017 | 135 | Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head - Treasurer's Office (until February 2017) | ||||
Thomas H. Connors (k) (age 62) | Assistant Secretary and Assistant Clerk | September 2012 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
David L. DiLorenzo (k) (age 53) | President | July 2005 | 135 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 54) | Secretary and Clerk | April 2017 | 135 | 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 48) | Assistant Secretary and Assistant Clerk | June 2006 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
Amanda S. Mooradian (k) (age 42) | Assistant Secretary and Assistant Clerk | September 2018 | 135 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 51) | Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Kasey L. Phillips (k) (age 51) | Assistant Treasurer | September 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 47) | Assistant Secretary and Assistant Clerk | October 2014 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Martin J. Wolin (k) (age 54) | Chief Compliance Officer | July 2015 | 135 | Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer | ||||
James O. Yost (k) (age 61) | Treasurer | September 1990 | 135 | 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 | Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 |
Portfolio Manager(s) | |
Robert Spector Erik Weisman |
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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31 |
Alphabet, Inc., “A” | 6.1% |
Microsoft Corp. | 5.3% |
Accenture PLC, “A” | 3.0% |
Apple, Inc. | 2.9% |
Church & Dwight Co., Inc. | 2.4% |
Canadian Pacific Railway Ltd. | 2.4% |
Dollarama, Inc. | 2.2% |
ICON PLC | 2.2% |
Tencent Holdings Ltd. | 2.0% |
Alibaba Group Holding Ltd. | 2.0% |
Information Technology | 24.9% |
Health Care | 14.7% |
Consumer Discretionary | 13.9% |
Consumer Staples | 12.2% |
Communication Services | 12.1% |
Industrials | 9.6% |
Financials | 8.1% |
Real Estate | 1.9% |
Materials | 1.3% |
Utilities | 0.9% |
United States | 65.8% |
Canada | 5.6% |
China | 5.0% |
United Kingdom | 4.4% |
Switzerland | 4.2% |
Ireland | 2.8% |
Japan | 2.3% |
South Korea | 2.1% |
Germany | 1.8% |
Other Countries | 6.0% |
United States Dollar | 71.1% |
British Pound Sterling | 5.1% |
Swiss Franc | 4.2% |
Euro | 4.2% |
Hong Kong Dollar | 4.0% |
Canadian Dollar | 3.2% |
Japanese Yen | 2.3% |
South Korean Won | 2.1% |
Indian Rupee | 1.5% |
Other Currencies | 2.3% |
(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. |
Jeffrey Constantino and Joseph Skorski
(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 | 10-yr |
Initial Class | 11/16/93 | 18.52% | 19.61% | 14.50% |
Service Class | 8/24/01 | 18.21% | 19.31% | 14.21% |
MSCI All Country World Growth Index (net div) (f) | 17.10% | 19.92% | 14.70% |
(f) | Source: FactSet Research Systems Inc. |
(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. |
July 1, 2021 through December 31, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 7/01/21 | Ending Account Value 12/31/21 | Expenses Paid During Period (p) 7/01/21-12/31/21 | |
Initial Class | Actual | 1.00% | $1,000.00 | $1,066.38 | $5.21 |
Hypothetical (h) | 1.00% | $1,000.00 | $1,020.16 | $5.09 | |
Service Class | Actual | 1.25% | $1,000.00 | $1,065.10 | $6.51 |
Hypothetical (h) | 1.25% | $1,000.00 | $1,018.90 | $6.36 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 99.6% | ||||
Alcoholic Beverages – 2.7% | ||||
Diageo PLC | 19,949 | $ 1,089,799 | ||
Kweichow Moutai Co. Ltd., “A” | 1,900 | 611,139 | ||
$1,700,938 | ||||
Apparel Manufacturers – 5.8% | ||||
Adidas AG | 3,842 | $ 1,107,526 | ||
Burberry Group PLC | 24,356 | 599,176 | ||
LVMH Moet Hennessy Louis Vuitton SE | 1,092 | 903,837 | ||
NIKE, Inc., “B” | 6,029 | 1,004,853 | ||
$3,615,392 | ||||
Brokerage & Asset Managers – 2.1% | ||||
Blackstone, Inc. | 1,654 | $ 214,011 | ||
Charles Schwab Corp. | 12,810 | 1,077,321 | ||
$1,291,332 | ||||
Business Services – 9.9% | ||||
Accenture PLC, “A” | 4,544 | $ 1,883,715 | ||
CGI, Inc. (a) | 6,776 | 599,151 | ||
Cognizant Technology Solutions Corp., “A” | 5,934 | 526,464 | ||
Equifax, Inc. | 2,669 | 781,457 | ||
Fidelity National Information Services, Inc. | 6,659 | 726,830 | ||
Fiserv, Inc. (a) | 9,729 | 1,009,773 | ||
Verisk Analytics, Inc., “A” | 2,962 | 677,498 | ||
$6,204,888 | ||||
Cable TV – 1.0% | ||||
Charter Communications, Inc., “A” (a) | 999 | $ 651,318 | ||
Computer Software – 6.7% | ||||
Microsoft Corp. | 9,837 | $ 3,308,380 | ||
NAVER Corp. (a) | 2,797 | 890,569 | ||
$4,198,949 | ||||
Computer Software - Systems – 3.5% | ||||
Apple, Inc. | 10,127 | $ 1,798,252 | ||
Samsung Electronics Co. Ltd. | 6,330 | 416,941 | ||
$2,215,193 | ||||
Construction – 1.9% | ||||
Otis Worldwide Corp. | 7,312 | $ 636,656 | ||
Sherwin-Williams Co. | 1,509 | 531,409 | ||
$1,168,065 | ||||
Consumer Products – 6.6% | ||||
Church & Dwight Co., Inc. | 14,765 | $ 1,513,412 | ||
Colgate-Palmolive Co. | 6,840 | 583,726 | ||
Estee Lauder Cos., Inc., “A” | 1,114 | 412,403 | ||
KOSE Corp. | 7,400 | 839,520 | ||
Reckitt Benckiser Group PLC | 8,874 | 761,763 | ||
$4,110,824 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Electrical Equipment – 4.2% | ||||
Amphenol Corp., “A” | 13,121 | $ 1,147,563 | ||
Fortive Corp. | 10,474 | 799,061 | ||
TE Connectivity Ltd. | 4,384 | 707,315 | ||
$2,653,939 | ||||
Electronics – 3.1% | ||||
Analog Devices, Inc. | 3,224 | $ 566,682 | ||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 7,013 | 843,734 | ||
Texas Instruments, Inc. | 2,868 | 540,532 | ||
$1,950,948 | ||||
Food & Beverages – 2.9% | ||||
McCormick & Co., Inc. | 7,542 | $ 728,633 | ||
Nestle S.A. | 5,345 | 747,549 | ||
PepsiCo, Inc. | 1,829 | 317,715 | ||
$1,793,897 | ||||
Gaming & Lodging – 0.7% | ||||
Flutter Entertainment PLC (a) | 2,563 | $ 407,972 | ||
General Merchandise – 2.7% | ||||
B&M European Value Retail S.A. | 37,100 | $ 318,374 | ||
Dollarama, Inc. | 27,759 | 1,389,321 | ||
$1,707,695 | ||||
Health Maintenance Organizations – 0.7% | ||||
Cigna Corp. | 1,939 | $ 445,253 | ||
Insurance – 2.4% | ||||
Aon PLC | 3,351 | $ 1,007,176 | ||
Marsh & McLennan Cos., Inc. | 2,723 | 473,312 | ||
$1,480,488 | ||||
Internet – 10.1% | ||||
Alibaba Group Holding Ltd. (a) | 80,312 | $ 1,224,628 | ||
Alphabet, Inc., “A” (a) | 1,321 | 3,826,990 | ||
Tencent Holdings Ltd. | 21,800 | 1,277,098 | ||
$6,328,716 | ||||
Leisure & Toys – 1.4% | ||||
Electronic Arts, Inc. | 6,833 | $ 901,273 | ||
Machinery & Tools – 1.6% | ||||
Daikin Industries Ltd. | 2,600 | $ 589,707 | ||
Schindler Holding AG | 1,586 | 425,527 | ||
$1,015,234 | ||||
Medical & Health Technology & Services – 2.2% | ||||
ICON PLC (a) | 4,478 | $ 1,386,837 | ||
Medical Equipment – 10.5% | ||||
Abbott Laboratories | 2,694 | $ 379,154 | ||
Agilent Technologies, Inc. | 2,498 | 398,806 | ||
Becton, Dickinson and Co. | 2,976 | 748,404 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Medical Equipment – continued | ||||
Boston Scientific Corp. (a) | 26,512 | $ 1,126,230 | ||
Danaher Corp. | 2,919 | 960,380 | ||
Medtronic PLC | 4,556 | 471,318 | ||
STERIS PLC | 2,682 | 652,826 | ||
Stryker Corp. | 2,947 | 788,087 | ||
Thermo Fisher Scientific, Inc. | 1,522 | 1,015,539 | ||
$6,540,744 | ||||
Other Banks & Diversified Financials – 6.1% | ||||
Credicorp Ltd. | 3,773 | $ 460,570 | ||
HDFC Bank Ltd. | 46,121 | 917,883 | ||
Julius Baer Group Ltd. | 5,085 | 339,808 | ||
Mastercard, Inc., “A” | 1,098 | 394,533 | ||
Moody's Corp. | 1,524 | 595,244 | ||
Visa, Inc., “A” | 5,139 | 1,113,673 | ||
$3,821,711 | ||||
Pharmaceuticals – 1.3% | ||||
Roche Holding AG | 1,984 | $ 822,438 | ||
Printing & Publishing – 1.0% | ||||
Wolters Kluwer N.V. | 5,278 | $ 622,533 | ||
Railroad & Shipping – 2.4% | ||||
Canadian Pacific Railway Ltd. | 20,922 | $ 1,505,129 | ||
Restaurants – 0.9% | ||||
Starbucks Corp. | 4,998 | $ 584,616 | ||
Specialty Chemicals – 0.5% | ||||
Sika AG | 750 | $ 311,322 | ||
Specialty Stores – 1.9% | ||||
Ross Stores, Inc. | 5,328 | $ 608,884 | ||
TJX Cos., Inc. | 7,475 | 567,502 | ||
$1,176,386 | ||||
Telecommunications - Wireless – 1.9% | ||||
American Tower Corp., REIT | 4,085 | $ 1,194,862 | ||
Utilities - Electric Power – 0.9% | ||||
Xcel Energy, Inc. | 8,348 | $ 565,160 | ||
Total Common Stocks (Identified Cost, $31,930,926) | $62,374,052 | |||
Investment Companies (h) – 0.4% | ||||
Money Market Funds – 0.4% | ||||
MFS Institutional Money Market Portfolio, 0.07% (v) (Identified Cost, $263,435) | 263,436 | $ 263,435 | ||
Other Assets, Less Liabilities – (0.0)% | (27,108) | |||
Net Assets – 100.0% | $62,610,379 |
(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 $263,435 and $62,374,052, 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 |
Financial Statements | Statement of Assets and Liabilities |
At 12/31/21Assets | |
Investments in unaffiliated issuers, at value (identified cost, $31,930,926) | $62,374,052 |
Investments in affiliated issuers, at value (identified cost, $263,435) | 263,435 |
Cash | 93,744 |
Foreign currency, at value (identified cost, $27) | 27 |
Receivables for | |
Fund shares sold | 6,443 |
Dividends | 93,223 |
Receivable from investment adviser | 2,155 |
Other assets | 565 |
Total assets | $62,833,644 |
Liabilities | |
Payables for | |
Fund shares reacquired | $133,013 |
Payable to affiliates | |
Administrative services fee | 105 |
Shareholder servicing costs | 24 |
Distribution and/or service fees | 97 |
Payable for independent Trustees' compensation | 45 |
Deferred country tax expense payable | 31,340 |
Accrued expenses and other liabilities | 58,641 |
Total liabilities | $223,265 |
Net assets | $62,610,379 |
Net assets consist of | |
Paid-in capital | $26,455,350 |
Total distributable earnings (loss) | 36,155,029 |
Net assets | $62,610,379 |
Shares of beneficial interest outstanding | 1,907,412 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $55,500,860 | 1,689,773 | $32.85 |
Service Class | 7,109,519 | 217,639 | 32.67 |
Financial Statements | Statement of Operations |
Year ended 12/31/21 | |
Net investment income (loss) | |
Income | |
Dividends | $734,865 |
Other | 1,973 |
Dividends from affiliated issuers | 269 |
Income on securities loaned | 6 |
Foreign taxes withheld | (34,090) |
Total investment income | $703,023 |
Expenses | |
Management fee | $542,136 |
Distribution and/or service fees | 13,422 |
Shareholder servicing costs | 3,865 |
Administrative services fee | 18,828 |
Independent Trustees' compensation | 3,137 |
Custodian fee | 13,661 |
Shareholder communications | 5,414 |
Audit and tax fees | 80,077 |
Legal fees | 377 |
Miscellaneous | 22,703 |
Total expenses | $703,620 |
Reduction of expenses by investment adviser | (87,655) |
Net expenses | $615,965 |
Net investment income (loss) | $87,058 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers (net of $2,131 country tax) | $5,888,530 |
Foreign currency | (2,548) |
Net realized gain (loss) | $5,885,982 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers (net of $5,580 decrease in deferred country tax) | $4,183,054 |
Translation of assets and liabilities in foreign currencies | (3,290) |
Net unrealized gain (loss) | $4,179,764 |
Net realized and unrealized gain (loss) | $10,065,746 |
Change in net assets from operations | $10,152,804 |
Financial Statements | Statements of Changes in Net Assets |
Year ended | ||
12/31/21 | 12/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $87,058 | $43,748 |
Net realized gain (loss) | 5,885,982 | 6,924,262 |
Net unrealized gain (loss) | 4,179,764 | 2,933,827 |
Change in net assets from operations | $10,152,804 | $9,901,837 |
Total distributions to shareholders | $(7,022,050) | $(5,057,056) |
Change in net assets from fund share transactions | $2,938,411 | $(1,323,240) |
Total change in net assets | $6,069,165 | $3,521,541 |
Net assets | ||
At beginning of period | 56,541,214 | 53,019,673 |
At end of period | $62,610,379 | $56,541,214 |
Financial Statements | Financial Highlights |
Initial Class | Year ended | ||||
12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $31.23 | $28.60 | $23.72 | $26.53 | $21.00 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.06 | $0.03 | $0.14 | $0.15 | $0.13 |
Net realized and unrealized gain (loss) | 5.57 | 5.57 | 8.00 | (1.23) | 6.51 |
Total from investment operations | $5.63 | $5.60 | $8.14 | $(1.08) | $6.64 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.03) | $(0.14) | $(0.16) | $(0.14) | $(0.27) |
From net realized gain | (3.98) | (2.83) | (3.10) | (1.59) | (0.84) |
Total distributions declared to shareholders | $(4.01) | $(2.97) | $(3.26) | $(1.73) | $(1.11) |
Net asset value, end of period (x) | $32.85 | $31.23 | $28.60 | $23.72 | $26.53 |
Total return (%) (k)(r)(s)(x) | 18.52 | 20.76 | 36.01 | (4.83) | 32.14 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 1.15 | 1.21 | 1.21 | 1.17 | 1.17 |
Expenses after expense reductions | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |
Net investment income (loss) | 0.17 | 0.10 | 0.53 | 0.56 | 0.55 |
Portfolio turnover | 19 | 34 | 22 | 22 | 21 |
Net assets at end of period (000 omitted) | $55,501 | $53,591 | $50,911 | $43,919 | $54,886 |
Service Class | Year ended | ||||
12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $31.13 | $28.52 | $23.65 | $26.44 | $20.94 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $(0.03) | $(0.04) | $0.07 | $0.09 | $0.07 |
Net realized and unrealized gain (loss) | 5.55 | 5.56 | 7.98 | (1.24) | 6.48 |
Total from investment operations | $5.52 | $5.52 | $8.05 | $(1.15) | $6.55 |
Less distributions declared to shareholders | |||||
From net investment income | $— | $(0.08) | $(0.08) | $(0.05) | $(0.21) |
From net realized gain | (3.98) | (2.83) | (3.10) | (1.59) | (0.84) |
Total distributions declared to shareholders | $(3.98) | $(2.91) | $(3.18) | $(1.64) | $(1.05) |
Net asset value, end of period (x) | $32.67 | $31.13 | $28.52 | $23.65 | $26.44 |
Total return (%) (k)(r)(s)(x) | 18.21 | 20.49 | 35.66 | (5.06) | 31.77 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 1.39 | 1.46 | 1.46 | 1.42 | 1.42 |
Expenses after expense reductions | 1.25 | 1.25 | 1.25 | 1.25 | 1.25 |
Net investment income (loss) | (0.10) | (0.16) | 0.26 | 0.34 | 0.31 |
Portfolio turnover | 19 | 34 | 22 | 22 | 21 |
Net assets at end of period (000 omitted) | $7,110 | $2,950 | $2,109 | $1,754 | $2,530 |
(d) | Per share data is based on average shares outstanding. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(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 | $40,964,201 | $— | $— | $40,964,201 |
Canada | 3,493,601 | — | — | 3,493,601 |
China | 3,112,865 | — | — | 3,112,865 |
United Kingdom | 2,769,112 | — | — | 2,769,112 |
Switzerland | 747,549 | 1,899,095 | — | 2,646,644 |
Ireland | 1,794,809 | — | — | 1,794,809 |
Japan | 1,429,227 | — | — | 1,429,227 |
South Korea | 1,307,510 | — | — | 1,307,510 |
Germany | 1,107,526 | — | — | 1,107,526 |
Other Countries | 3,748,557 | — | — | 3,748,557 |
Mutual Funds | 263,435 | — | — | 263,435 |
Total | $60,738,392 | $1,899,095 | $— | $62,637,487 |
Year ended 12/31/21 | Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $274,048 | $556,052 |
Long-term capital gains | 6,748,002 | 4,501,004 |
Total distributions | $7,022,050 | $5,057,056 |
As of 12/31/21 | |
Cost of investments | $32,357,346 |
Gross appreciation | 30,701,080 |
Gross depreciation | (420,939) |
Net unrealized appreciation (depreciation) | $30,280,141 |
Undistributed ordinary income | 700,135 |
Undistributed long-term capital gain | 5,173,575 |
Other temporary differences | 1,178 |
Total distributable earnings (loss) | $36,155,029 |
Year ended 12/31/21 | Year ended 12/31/20 | ||
Initial Class | $6,286,826 | $4,835,637 | |
Service Class | 735,224 | 221,419 | |
Total | $7,022,050 | $5,057,056 |
Up to $1 billion | 0.90% |
In excess of $1 billion and up to $2 billion | 0.75% |
In excess of $2 billion | 0.65% |
Year ended 12/31/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 45,404 | $1,488,071 | 63,657 | $1,741,046 | |
Service Class | 112,594 | 3,745,462 | 22,786 | 663,768 | |
157,998 | $5,233,533 | 86,443 | $2,404,814 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | 198,762 | $6,286,826 | 172,148 | $4,835,637 | |
Service Class | 23,348 | 735,224 | 7,902 | 221,419 | |
222,110 | $7,022,050 | 180,050 | $5,057,056 | ||
Shares reacquired | |||||
Initial Class | (270,459) | $(8,881,980) | (299,956) | $(8,508,716) | |
Service Class | (13,091) | (435,192) | (9,827) | (276,394) | |
(283,550) | $(9,317,172) | (309,783) | $(8,785,110) | ||
Net change | |||||
Initial Class | (26,293) | $(1,107,083) | (64,151) | $(1,932,033) | |
Service Class | 122,851 | 4,045,494 | 20,861 | 608,793 | |
96,558 | $2,938,411 | (43,290) | $(1,323,240) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $461,131 | $10,373,300 | $10,570,996 | $— | $— | $263,435 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $269 | $— |
February 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 | 135 | 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 | 135 | Private investor | N/A | |||||
Steven E. Buller (age 70) | Trustee | February 2014 | 135 | Private investor | N/A | |||||
John A. Caroselli (age 67) | Trustee | March 2017 | 135 | Private investor; JC Global Advisors, LLC (management consulting), President (since 2015) | N/A | |||||
Maureen R. Goldfarb (age 66) | Trustee | January 2009 | 135 | Private investor | N/A | |||||
Peter D. Jones (age 66) | Trustee | January 2019 | 135 | Private investor | N/A | |||||
James W. Kilman, Jr. (age 60) | Trustee | January 2019 | 135 | 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) | |||||
Clarence Otis, Jr. (age 65) | Trustee | March 2017 | 135 | Private investor | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director | |||||
Maryanne L. Roepke (age 65) | Trustee | May 2014 | 135 | Private investor | N/A | |||||
Laurie J. Thomsen (age 64) | Trustee | March 2005 | 135 | 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 | 135 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | ||||
Kino Clark (k) (age 53) | Assistant Treasurer | January 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
John W. Clark, Jr. (k) (age 54) | Assistant Treasurer | April 2017 | 135 | Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head - Treasurer's Office (until February 2017) | ||||
Thomas H. Connors (k) (age 62) | Assistant Secretary and Assistant Clerk | September 2012 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
David L. DiLorenzo (k) (age 53) | President | July 2005 | 135 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 54) | Secretary and Clerk | April 2017 | 135 | 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 48) | Assistant Secretary and Assistant Clerk | June 2006 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
Amanda S. Mooradian (k) (age 42) | Assistant Secretary and Assistant Clerk | September 2018 | 135 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 51) | Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Kasey L. Phillips (k) (age 51) | Assistant Treasurer | September 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 47) | Assistant Secretary and Assistant Clerk | October 2014 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Martin J. Wolin (k) (age 54) | Chief Compliance Officer | July 2015 | 135 | Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer | ||||
James O. Yost (k) (age 61) | Treasurer | September 1990 | 135 | 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 | Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 |
Portfolio Manager(s) | |
Jeffrey Constantino Joseph Skorski |
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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31 |
Microsoft Corp. | 5.0% |
Alphabet, Inc., “A” | 3.2% |
Amazon.com, Inc. | 2.8% |
Taiwan Semiconductor Manufacturing Co. Ltd. | 1.8% |
Apple, Inc. | 1.7% |
Aon PLC | 1.5% |
Visa, Inc., “A” | 1.5% |
Roche Holding AG | 1.5% |
salesforce.com, inc. | 1.5% |
Adobe Systems, Inc. | 1.5% |
Technology | 28.7% |
Capital Goods | 17.0% |
Financial Services | 16.2% |
Health Care | 11.5% |
Consumer Cyclicals | 11.4% |
Energy | 6.3% |
Consumer Staples | 5.7% |
Telecommunications/Cable Television | 2.8% |
United States | 63.2% |
Switzerland | 4.7% |
France | 4.3% |
China | 3.6% |
United Kingdom | 3.0% |
Japan | 3.0% |
Germany | 2.5% |
Hong Kong | 2.0% |
Canada | 2.0% |
Other Countries | 11.7% |
United States Dollar | 65.1% |
Euro | 11.0% |
Hong Kong Dollar | 4.7% |
Swiss Franc | 4.7% |
British Pound Sterling | 3.5% |
Japanese Yen | 3.0% |
Taiwan Dollar | 1.8% |
Canadian Dollar | 1.4% |
Australian Dollar | 1.2% |
Other Currencies | 3.6% |
(k) | The sectors set forth above and the associated portfolio composition are based on MFS’ own custom sector classification methodology. |
(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 | 5-yr | 10-yr |
Initial Class | 11/07/94 | 18.51% | 15.83% | 12.45% |
Service Class | 8/24/01 | 18.20% | 15.53% | 12.18% |
MSCI All Country World Index (net div) (f) | 18.54% | 14.40% | 11.85% |
(f) | Source: FactSet Research Systems Inc. |
(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. |
July 1, 2021 through December 31, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 7/01/21 | Ending Account Value 12/31/21 | Expenses Paid During Period (p) 7/01/21-12/31/21 | |
Initial Class | Actual | 0.85% | $1,000.00 | $1,062.02 | $4.42 |
Hypothetical (h) | 0.85% | $1,000.00 | $1,020.92 | $4.33 | |
Service Class | Actual | 1.10% | $1,000.00 | $1,060.68 | $5.71 |
Hypothetical (h) | 1.10% | $1,000.00 | $1,019.66 | $5.60 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 99.6% | ||||
Aerospace & Defense – 2.9% | ||||
Honeywell International, Inc. | 4,607 | $ 960,606 | ||
Howmet Aerospace, Inc. | 10,388 | 330,650 | ||
L3Harris Technologies, Inc. | 2,169 | 462,517 | ||
Northrop Grumman Corp. | 1,238 | 479,193 | ||
Raytheon Technologies Corp. | 7,384 | 635,467 | ||
$2,868,433 | ||||
Alcoholic Beverages – 1.8% | ||||
China Resources Beer Holdings Co. Ltd. | 40,000 | $ 327,539 | ||
Constellation Brands, Inc., “A” | 1,947 | 488,638 | ||
Diageo PLC | 13,473 | 736,020 | ||
Kweichow Moutai Co. Ltd., “A” | 900 | 289,487 | ||
$1,841,684 | ||||
Apparel Manufacturers – 3.0% | ||||
Adidas AG | 2,631 | $ 758,433 | ||
Burberry Group PLC | 16,095 | 395,949 | ||
LVMH Moet Hennessy Louis Vuitton SE | 1,285 | 1,063,581 | ||
NIKE, Inc., “B” | 4,635 | 772,516 | ||
$2,990,479 | ||||
Biotechnology – 0.4% | ||||
Illumina, Inc. (a) | 1,022 | $ 388,810 | ||
Brokerage & Asset Managers – 2.4% | ||||
Charles Schwab Corp. | 16,951 | $ 1,425,579 | ||
Euronext N.V. | 9,269 | 962,939 | ||
$2,388,518 | ||||
Business Services – 3.9% | ||||
Accenture PLC, “A” | 3,163 | $ 1,311,222 | ||
Cognizant Technology Solutions Corp., “A” | 6,055 | 537,199 | ||
Fidelity National Information Services, Inc. | 6,404 | 698,996 | ||
Fiserv, Inc. (a) | 8,139 | 844,747 | ||
Global Payments, Inc. | 3,576 | 483,404 | ||
$3,875,568 | ||||
Computer Software – 11.0% | ||||
Adobe Systems, Inc. (a) | 2,581 | $ 1,463,582 | ||
Atlassian Corp. PLC, “A” (a) | 1,659 | 632,560 | ||
Cadence Design Systems, Inc. (a) | 5,486 | 1,022,316 | ||
Microsoft Corp. (s) | 15,016 | 5,050,181 | ||
NAVER Corp. (a) | 2,654 | 845,038 | ||
NetEase.com, Inc., ADR | 5,524 | 562,233 | ||
salesforce.com, inc. (a) | 5,833 | 1,482,340 | ||
$11,058,250 | ||||
Computer Software - Systems – 3.6% | ||||
Apple, Inc. (s) | 9,877 | $ 1,753,859 | ||
Constellation Software, Inc. | 556 | 1,031,581 | ||
Hitachi Ltd. | 6,200 | 335,791 | ||
NICE Systems Ltd., ADR (a) | 1,744 | 529,478 | ||
$3,650,709 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Construction – 2.7% | ||||
Masco Corp. | 7,312 | $ 513,449 | ||
Otis Worldwide Corp. | 6,437 | 560,470 | ||
Sherwin-Williams Co. | 1,807 | 636,353 | ||
Techtronic Industries Co. Ltd. | 24,000 | 477,688 | ||
Vulcan Materials Co. | 2,707 | 561,919 | ||
$2,749,879 | ||||
Consumer Products – 1.0% | ||||
Colgate-Palmolive Co. | 4,619 | $ 394,185 | ||
Kao Corp. | 5,300 | 277,325 | ||
Reckitt Benckiser Group PLC | 4,355 | 373,843 | ||
$1,045,353 | ||||
Electrical Equipment – 2.8% | ||||
Johnson Controls International PLC | 9,976 | $ 811,149 | ||
Schneider Electric SE | 5,951 | 1,168,453 | ||
TE Connectivity Ltd. | 3,619 | 583,889 | ||
Vertiv Holdings Co. | 11,430 | 285,407 | ||
$2,848,898 | ||||
Electronics – 4.2% | ||||
Applied Materials, Inc. | 5,335 | $ 839,516 | ||
Lam Research Corp. | 672 | 483,269 | ||
NXP Semiconductors N.V. | 5,034 | 1,146,644 | ||
Taiwan Semiconductor Manufacturing Co. Ltd. | 81,000 | 1,800,520 | ||
$4,269,949 | ||||
Energy - Independent – 1.5% | ||||
ConocoPhillips | 12,208 | $ 881,174 | ||
Santos Ltd. | 43,669 | 200,477 | ||
Valero Energy Corp. | 5,821 | 437,215 | ||
$1,518,866 | ||||
Energy - Integrated – 1.0% | ||||
Capricorn Energy PLC | 132,322 | $ 337,254 | ||
Galp Energia SGPS S.A., “B” | 73,593 | 713,853 | ||
$1,051,107 | ||||
Food & Beverages – 2.3% | ||||
Mondelez International, Inc. | 8,855 | $ 587,175 | ||
Nestle S.A. | 7,238 | 1,012,304 | ||
PepsiCo, Inc. | 3,913 | 679,727 | ||
$2,279,206 | ||||
Gaming & Lodging – 0.7% | ||||
Flutter Entertainment PLC (a) | 3,297 | $ 524,808 | ||
Whitbread PLC (a) | 5,598 | 226,937 | ||
$751,745 | ||||
General Merchandise – 0.8% | ||||
Dollar General Corp. | 3,392 | $ 799,935 | ||
Health Maintenance Organizations – 0.9% | ||||
Cigna Corp. | 4,037 | $ 927,016 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Insurance – 3.5% | ||||
AIA Group Ltd. | 104,000 | $ 1,048,329 | ||
Aon PLC | 5,199 | 1,562,612 | ||
Chubb Ltd. | 4,619 | 892,899 | ||
$3,503,840 | ||||
Internet – 5.4% | ||||
Alphabet, Inc., “A” (a)(s) | 1,113 | $ 3,224,405 | ||
Meta Platforms, Inc., “A” (a) | 2,638 | 887,291 | ||
Tencent Holdings Ltd. | 21,800 | 1,277,099 | ||
$5,388,795 | ||||
Leisure & Toys – 0.9% | ||||
Electronic Arts, Inc. | 4,587 | $ 605,025 | ||
Prosus N.V. | 3,926 | 328,661 | ||
$933,686 | ||||
Machinery & Tools – 3.6% | ||||
GEA Group AG | 8,571 | $ 469,266 | ||
Ingersoll Rand, Inc. | 14,924 | 923,348 | ||
Kubota Corp. | 21,500 | 477,269 | ||
Roper Technologies, Inc. | 1,708 | 840,097 | ||
Schindler Holding AG | 1,456 | 390,647 | ||
SMC Corp. | 800 | 539,616 | ||
$3,640,243 | ||||
Major Banks – 2.6% | ||||
BNP Paribas | 16,741 | $ 1,158,253 | ||
Goldman Sachs Group, Inc. | 2,543 | 972,825 | ||
Mitsubishi UFJ Financial Group, Inc. | 88,300 | 479,689 | ||
$2,610,767 | ||||
Medical & Health Technology & Services – 1.2% | ||||
ICON PLC (a) | 3,867 | $ 1,197,610 | ||
Medical Equipment – 4.4% | ||||
Becton, Dickinson and Co. | 2,591 | $ 651,585 | ||
Boston Scientific Corp. (a)(s) | 23,550 | 1,000,404 | ||
Danaher Corp. | 2,083 | 685,328 | ||
Medtronic PLC | 7,545 | 780,530 | ||
QIAGEN N.V. (a) | 8,674 | 482,101 | ||
Thermo Fisher Scientific, Inc. | 1,232 | 822,039 | ||
$4,421,987 | ||||
Natural Gas - Distribution – 0.5% | ||||
China Resources Gas Group Ltd. | 94,000 | $ 531,026 | ||
Natural Gas - Pipeline – 0.4% | ||||
TC Energy Corp. | 8,320 | $ 386,945 | ||
Network & Telecom – 0.7% | ||||
Equinix, Inc., REIT | 812 | $ 686,822 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Other Banks & Diversified Financials – 6.4% | ||||
HDFC Bank Ltd. | 56,257 | $ 1,119,606 | ||
Julius Baer Group Ltd. | 17,860 | 1,193,505 | ||
Macquarie Group Ltd. | 6,483 | 968,811 | ||
Moody's Corp. | 1,366 | 533,532 | ||
Truist Financial Corp. | 18,339 | 1,073,748 | ||
Visa, Inc., “A” | 7,098 | 1,538,208 | ||
$6,427,410 | ||||
Pharmaceuticals – 4.6% | ||||
Johnson & Johnson | 5,777 | $ 988,271 | ||
Merck & Co., Inc. | 10,448 | 800,735 | ||
Roche Holding AG | 3,620 | 1,500,618 | ||
Santen Pharmaceutical Co. Ltd. | 38,200 | 467,247 | ||
Zoetis, Inc. | 3,666 | 894,614 | ||
$4,651,485 | ||||
Printing & Publishing – 0.7% | ||||
Wolters Kluwer N.V. | 6,219 | $ 733,522 | ||
Railroad & Shipping – 0.6% | ||||
Canadian Pacific Railway Ltd. | 8,055 | $ 579,477 | ||
Real Estate – 1.3% | ||||
LEG Immobilien SE | 5,952 | $ 831,458 | ||
STORE Capital Corp., REIT | 15,178 | 522,123 | ||
$1,353,581 | ||||
Restaurants – 1.5% | ||||
Starbucks Corp. | 3,633 | $ 424,952 | ||
Wendy's Co. | 18,552 | 442,465 | ||
Yum China Holdings, Inc. | 12,080 | 602,068 | ||
$1,469,485 | ||||
Specialty Chemicals – 4.4% | ||||
Air Products & Chemicals, Inc. | 1,659 | $ 504,767 | ||
Akzo Nobel N.V. | 3,883 | 426,607 | ||
Axalta Coating Systems Ltd. (a) | 15,506 | 513,559 | ||
Croda International PLC | 5,183 | 709,964 | ||
DuPont de Nemours, Inc. | 8,890 | 718,134 | ||
Linde PLC | 2,846 | 991,492 | ||
Sika AG | 1,456 | 604,379 | ||
$4,468,902 | ||||
Specialty Stores – 3.8% | ||||
Amazon.com, Inc. (a)(s) | 842 | $ 2,807,514 | ||
Home Depot, Inc. | 2,372 | 984,404 | ||
$3,791,918 | ||||
Telecommunications - Wireless – 2.4% | ||||
Advanced Info Service Public Co. Ltd. | 66,700 | $ 459,243 | ||
Cellnex Telecom S.A. | 7,728 | 448,688 | ||
KDDI Corp. | 15,000 | 438,407 | ||
Liberty Broadband Corp. (a) | 3,437 | 553,701 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Telecommunications - Wireless – continued | ||||
T-Mobile US, Inc. (a) | 4,052 | $ 469,951 | ||
$2,369,990 | ||||
Telephone Services – 0.4% | ||||
Hellenic Telecommunications Organization S.A. | 21,518 | $ 398,219 | ||
Tobacco – 0.6% | ||||
British American Tobacco PLC | 7,167 | $ 265,174 | ||
Philip Morris International, Inc. | 3,205 | 304,475 | ||
$569,649 | ||||
Utilities - Electric Power – 2.8% | ||||
CLP Holdings Ltd. | 50,500 | $ 510,016 | ||
Iberdrola S.A. | 51,572 | 604,345 | ||
NextEra Energy, Inc. | 7,201 | 672,285 | ||
Orsted A/S | 3,328 | 427,364 | ||
Southern Co. | 8,926 | 612,145 | ||
$2,826,155 | ||||
Total Common Stocks (Identified Cost, $60,866,634) | $ 100,245,919 | |||
Investment Companies (h) – 0.5% | ||||
Money Market Funds – 0.5% | ||||
MFS Institutional Money Market Portfolio, 0.07% (v) (Identified Cost, $496,235) | 496,235 | $ 496,235 | ||
Other Assets, Less Liabilities – (0.1)% | (71,695) | |||
Net Assets – 100.0% | $ 100,670,459 |
(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 $496,235 and $100,245,919, respectively. | |||
(s) | Security or a portion of the security was pledged to cover collateral requirements for certain derivative transactions. | |||
(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 |
Financial Statements | Statement of Assets and Liabilities |
At 12/31/21Assets | |
Investments in unaffiliated issuers, at value (identified cost, $60,866,634) | $100,245,919 |
Investments in affiliated issuers, at value (identified cost, $496,235) | 496,235 |
Deposits with brokers | 2,587 |
Receivables for | |
Dividends | 157,870 |
Receivable from investment adviser | 3,673 |
Other assets | 733 |
Total assets | $100,907,017 |
Liabilities | |
Payables for | |
Fund shares reacquired | $117,643 |
Payable to affiliates | |
Administrative services fee | 133 |
Shareholder servicing costs | 16 |
Distribution and/or service fees | 110 |
Payable for independent Trustees' compensation | 74 |
Deferred country tax expense payable | 48,636 |
Accrued expenses and other liabilities | 69,946 |
Total liabilities | $236,558 |
Net assets | $100,670,459 |
Net assets consist of | |
Paid-in capital | $53,871,965 |
Total distributable earnings (loss) | 46,798,494 |
Net assets | $100,670,459 |
Shares of beneficial interest outstanding | 2,648,187 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $92,642,347 | 2,435,925 | $38.03 |
Service Class | 8,028,112 | 212,262 | 37.82 |
Financial Statements | Statement of Operations |
Year ended 12/31/21 | |
Net investment income (loss) | |
Income | |
Dividends | $1,393,502 |
Income on securities loaned | 803 |
Dividends from affiliated issuers | 299 |
Other | 29 |
Foreign taxes withheld | (66,191) |
Total investment income | $1,328,442 |
Expenses | |
Management fee | $745,982 |
Distribution and/or service fees | 19,526 |
Shareholder servicing costs | 2,371 |
Administrative services fee | 23,904 |
Independent Trustees' compensation | 3,693 |
Custodian fee | 27,241 |
Shareholder communications | 11,098 |
Audit and tax fees | 62,868 |
Legal fees | 977 |
Miscellaneous | 27,599 |
Total expenses | $925,259 |
Reduction of expenses by investment adviser | (59,958) |
Net expenses | $865,301 |
Net investment income (loss) | $463,141 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers (net of $4,577 country tax) | $7,026,361 |
Foreign currency | (3,710) |
Net realized gain (loss) | $7,022,651 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers (net of $9,991 increase in deferred country tax) | $9,330,533 |
Translation of assets and liabilities in foreign currencies | (3,367) |
Net unrealized gain (loss) | $9,327,166 |
Net realized and unrealized gain (loss) | $16,349,817 |
Change in net assets from operations | $16,812,958 |
Financial Statements | Statements of Changes in Net Assets |
Year ended | ||
12/31/21 | 12/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $463,141 | $584,760 |
Net realized gain (loss) | 7,022,651 | 7,007,762 |
Net unrealized gain (loss) | 9,327,166 | 6,103,129 |
Change in net assets from operations | $16,812,958 | $13,695,651 |
Total distributions to shareholders | $(7,696,062) | $(6,967,015) |
Change in net assets from fund share transactions | $(4,826,833) | $(3,519,648) |
Total change in net assets | $4,290,063 | $3,208,988 |
Net assets | ||
At beginning of period | 96,380,396 | 93,171,408 |
At end of period | $100,670,459 | $96,380,396 |
Financial Statements | Financial Highlights |
Initial Class | Year ended | ||||
12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $34.70 | $32.19 | $27.00 | $31.74 | $25.69 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.18 | $0.22 | $0.40 | $0.32 | $0.28 |
Net realized and unrealized gain (loss) | 6.17 | 4.87 | 7.88 | (2.82) | 6.24 |
Total from investment operations | $6.35 | $5.09 | $8.28 | $(2.50) | $6.52 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.22) | $(0.42) | $(0.34) | $(0.33) | $(0.47) |
From net realized gain | (2.80) | (2.16) | (2.75) | (1.91) | — |
Total distributions declared to shareholders | $(3.02) | $(2.58) | $(3.09) | $(2.24) | $(0.47) |
Net asset value, end of period (x) | $38.03 | $34.70 | $32.19 | $27.00 | $31.74 |
Total return (%) (k)(r)(s)(x) | 18.51 | 16.49 | 31.96 | (8.83) | 25.51 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.91 | 0.95 | 0.94 | 0.93 | 0.92 |
Expenses after expense reductions | 0.85 | 0.85 | 0.85 | 0.88 | 0.92 |
Net investment income (loss) | 0.49 | 0.69 | 1.29 | 1.01 | 0.97 |
Portfolio turnover | 15 | 32 | 27 | 22 | 33 |
Net assets at end of period (000 omitted) | $92,642 | $88,676 | $87,138 | $77,345 | $98,434 |
Service Class | Year ended | ||||
12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $34.54 | $32.06 | $26.89 | $31.61 | $25.59 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.09 | $0.13 | $0.32 | $0.24 | $0.21 |
Net realized and unrealized gain (loss) | 6.13 | 4.87 | 7.85 | (2.82) | 6.20 |
Total from investment operations | $6.22 | $5.00 | $8.17 | $(2.58) | $6.41 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.14) | $(0.36) | $(0.25) | $(0.23) | $(0.39) |
From net realized gain | (2.80) | (2.16) | (2.75) | (1.91) | — |
Total distributions declared to shareholders | $(2.94) | $(2.52) | $(3.00) | $(2.14) | $(0.39) |
Net asset value, end of period (x) | $37.82 | $34.54 | $32.06 | $26.89 | $31.61 |
Total return (%) (k)(r)(s)(x) | 18.20 | 16.24 | 31.62 | (9.06) | 25.17 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 1.16 | 1.21 | 1.19 | 1.18 | 1.17 |
Expenses after expense reductions | 1.10 | 1.10 | 1.10 | 1.13 | 1.17 |
Net investment income (loss) | 0.24 | 0.40 | 1.06 | 0.76 | 0.73 |
Portfolio turnover | 15 | 32 | 27 | 22 | 33 |
Net assets at end of period (000 omitted) | $8,028 | $7,705 | $6,034 | $5,519 | $7,312 |
(d) | Per share data is based on average shares outstanding. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(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 | $63,239,159 | $— | $— | $63,239,159 |
Switzerland | 1,012,304 | 3,689,149 | — | 4,701,453 |
France | 4,353,226 | — | — | 4,353,226 |
China | 3,589,452 | — | — | 3,589,452 |
United Kingdom | 3,045,141 | — | — | 3,045,141 |
Japan | 3,015,344 | — | — | 3,015,344 |
Germany | 2,541,258 | — | — | 2,541,258 |
Hong Kong | 2,036,033 | — | — | 2,036,033 |
Canada | 1,998,003 | — | — | 1,998,003 |
Other Countries | 9,787,210 | 1,939,640 | — | 11,726,850 |
Mutual Funds | 496,235 | — | — | 496,235 |
Total | $95,113,365 | $5,628,789 | $— | $100,742,154 |
Year ended 12/31/21 | Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $1,290,016 | $1,126,006 |
Long-term capital gains | 6,406,046 | 5,841,009 |
Total distributions | $7,696,062 | $6,967,015 |
As of 12/31/21 | |
Cost of investments | $61,460,890 |
Gross appreciation | 40,354,608 |
Gross depreciation | (1,073,344) |
Net unrealized appreciation (depreciation) | $39,281,264 |
Undistributed ordinary income | 1,609,256 |
Undistributed long-term capital gain | 5,905,169 |
Other temporary differences | 2,805 |
Total distributable earnings (loss) | $46,798,494 |
Year ended 12/31/21 | Year ended 12/31/20 | ||
Initial Class | $7,108,197 | $6,392,513 | |
Service Class | 587,865 | 574,502 | |
Total | $7,696,062 | $6,967,015 |
Up to $300 million | 0.75% |
In excess of $300 million | 0.675% |
Year ended 12/31/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 32,311 | $1,189,874 | 26,914 | $846,212 | |
Service Class | 3,188 | 114,787 | 83,361 | 2,590,298 | |
35,499 | $1,304,661 | 110,275 | $3,436,510 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | 191,286 | $7,108,197 | 199,517 | $6,392,513 | |
Service Class | 15,897 | 587,865 | 17,998 | 574,502 | |
207,183 | $7,696,062 | 217,515 | $6,967,015 | ||
Shares reacquired | |||||
Initial Class | (343,195) | $(12,731,621) | (378,252) | $(11,870,001) | |
Service Class | (29,917) | (1,095,935) | (66,439) | (2,053,172) | |
(373,112) | $(13,827,556) | (444,691) | $(13,923,173) | ||
Net change | |||||
Initial Class | (119,598) | $(4,433,550) | (151,821) | $(4,631,276) | |
Service Class | (10,832) | (393,283) | 34,920 | 1,111,628 | |
(130,430) | $(4,826,833) | (116,901) | $(3,519,648) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $365,105 | $14,039,702 | $13,908,572 | $— | $— | $496,235 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $299 | $— |
February 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 | 135 | 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 | 135 | Private investor | N/A | |||||
Steven E. Buller (age 70) | Trustee | February 2014 | 135 | Private investor | N/A | |||||
John A. Caroselli (age 67) | Trustee | March 2017 | 135 | Private investor; JC Global Advisors, LLC (management consulting), President (since 2015) | N/A | |||||
Maureen R. Goldfarb (age 66) | Trustee | January 2009 | 135 | Private investor | N/A | |||||
Peter D. Jones (age 66) | Trustee | January 2019 | 135 | Private investor | N/A | |||||
James W. Kilman, Jr. (age 60) | Trustee | January 2019 | 135 | 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) | |||||
Clarence Otis, Jr. (age 65) | Trustee | March 2017 | 135 | Private investor | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director | |||||
Maryanne L. Roepke (age 65) | Trustee | May 2014 | 135 | Private investor | N/A | |||||
Laurie J. Thomsen (age 64) | Trustee | March 2005 | 135 | 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 | 135 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | ||||
Kino Clark (k) (age 53) | Assistant Treasurer | January 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
John W. Clark, Jr. (k) (age 54) | Assistant Treasurer | April 2017 | 135 | Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head - Treasurer's Office (until February 2017) | ||||
Thomas H. Connors (k) (age 62) | Assistant Secretary and Assistant Clerk | September 2012 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
David L. DiLorenzo (k) (age 53) | President | July 2005 | 135 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 54) | Secretary and Clerk | April 2017 | 135 | 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 48) | Assistant Secretary and Assistant Clerk | June 2006 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
Amanda S. Mooradian (k) (age 42) | Assistant Secretary and Assistant Clerk | September 2018 | 135 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 51) | Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Kasey L. Phillips (k) (age 51) | Assistant Treasurer | September 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 47) | Assistant Secretary and Assistant Clerk | October 2014 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Martin J. Wolin (k) (age 54) | Chief Compliance Officer | July 2015 | 135 | Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer | ||||
James O. Yost (k) (age 61) | Treasurer | September 1990 | 135 | 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 | Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 |
Portfolio Manager(s) | |
Akira Fuse James Keating |
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. |
Allocation Portfolio
1 | |
2 | |
4 | |
6 | |
8 | |
9 | |
33 | |
34 | |
35 | |
36 | |
38 | |
51 | |
52 | |
55 | |
58 | |
58 | |
58 | |
58 | |
58 | |
59 |
Tactical Overlay (b) | |||||
Active Security Selection (a) | Long | Short | Net Market Exposure (c) | ||
Fixed Income | U.S. | 12.8% | 24.4% | (6.7)% | 30.5% |
Emerging Markets | 14.2% | 0.0% | 0.0% | 14.2% | |
Asia/Pacific ex-Japan | 1.8% | 10.0% | 0.0% | 11.8% | |
Europe ex-U.K. | 12.8% | 0.0% | (5.2)% | 7.6% | |
Supranational | 2.3% | 0.0% | 0.0% | 2.3% | |
North America ex-U.S. | (0.2)% | 1.7% | 0.0% | 1.5% | |
Japan | 3.9% | 0.0% | (3.3)% | 0.6% | |
Developed - Middle East/Africa | 0.1% | 0.0% | 0.0% | 0.1% | |
United Kingdom | 4.4% | 0.0% | (6.6)% | (2.2)% | |
Total | 52.1% | 36.1% | (21.8)% | 66.4% | |
Equity | Europe ex-U.K. | 7.4% | 8.4% | (3.8)% | 12.0% |
U.S. Large Cap | 14.6% | 0.0% | (5.7)% | 8.9% | |
United Kingdom | 2.7% | 2.7% | 0.0% | 5.4% | |
Japan | 2.2% | 0.5% | 0.0% | 2.7% | |
North America ex-U.S. | 1.2% | 0.9% | 0.0% | 2.1% | |
U.S. Small/Mid Cap | 4.7% | 0.0% | (2.7)% | 2.0% | |
Emerging Markets | 2.6% | 6.1% | (8.5)% | 0.2% | |
Asia/Pacific ex-Japan | 0.6% | 1.1% | (4.0)% | (2.3)% | |
Total | 36.0% | 19.7% | (24.7)% | 31.0% | |
Real Estate-related | U.S. | 1.0% | 0.0% | 0.0% | 1.0% |
Non-U.S. | 0.1% | 0.0% | 0.0% | 0.1% | |
Total | 1.1% | 0.0% | 0.0% | 1.1% | |
Cash | Cash & Cash Equivalents (d) | 2.1% | |||
Other (e) | (0.6)% | ||||
Total | 1.5% | ||||
Total Net Exposure Summary | 100.0% |
Exposure Ranges
Asset Class | Target (w) | Ranges (z) |
Equities | 35% | 0 to 70% |
Fixed Income, Cash and Cash Equivalents | 65% | 30 to 100% |
USD Interest Rate Swap, Receive 0.29% - SEP 2023 | 13.1% |
USD Interest Rate Swap, Receive 0.79% - SEP 2026 | 11.3% |
Australian Bond 10 yr Future - MAR 2022 | 10.0% |
Euro-Bobl 5 yr Future - MAR 2022 | 4.2% |
OMX Index Future - JAN 2022 | 3.9% |
S&P/ASX 200 Index Future - MAR 2022 | (4.0)% |
U.S. Treasury Note 5 yr Future - MAR 2022 | (4.0)% |
Long Gilt 10 yr Future - MAR 2022 | (4.5)% |
S&P 500 E-Mini Index Future - MAR 2022 | (5.7)% |
Euro-Bund 10 yr Future - MAR 2022 | (9.9)% |
(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, 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, including payables and/or receivables of the finance leg of interest rate swaps and the unrealized gain or loss in connection with forward currency exchange contracts. |
(w) | The strategic asset class allocations have been selected for investment over longer time periods. The actual strategic asset class weightings can deviate due to market movements and cash flows. |
(z) | The fund’s net exposures to the asset classes referenced will normally fall within these ranges after taking into account the tactical overlay. |
(b) | Security is not a benchmark constituent. |
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value. |
(r) | Securities rated “BBB”, “Baa”, or higher are considered investment grade; securities rated “BB”, “Ba”, or below are considered non-investment grade. Ratings are assigned to underlying securities utilizing ratings from Moody's, Fitch, and Standard & Poor's and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. If none of the 3 rating agencies above assign a rating, but the security is rated by DBRS Morningstar, then the DBRS Morningstar rating is assigned. If none of the 4 rating agencies listed above rate the security, but the security is rated by the Kroll Bond Rating Agency (KBRA), then the KBRA rating is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). For securities that are not rated by any of the rating agencies, the security is considered Not Rated. |
(y) | A yield curve graphically depicts the yields of different maturity bonds of the same credit quality and type; a normal yield curve is upward sloping, with short-term rates lower than long-term rates. |
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr |
Initial Class | 11/07/94 | 2.79% | 5.78% | 5.53% |
Service Class | 8/24/01 | 2.58% | 5.52% | 5.27% |
Bloomberg Global Aggregate Index (f) | (4.71)% | 3.36% | 1.77% |
MFS Global Tactical Allocation Blended Index (f)(w) | 5.94% | 7.60% | 6.65% |
Bloomberg Global Aggregate Index (USD Hedged) (f) | (1.39)% | 3.39% | 3.49% |
MSCI World Index (net div) (f) | 21.82% | 15.03% | 12.70% |
(f) | Source: FactSet Research Systems Inc. |
(w) | As of December 31, 2021, the MFS Global Tactical Allocation Blended Index (a custom index) was comprised of 35% MSCI World Index (net div), 54% Bloomberg Global Aggregate Index (USD Hedged), and 11% Bloomberg Global Aggregate Index. |
(a) | Source: Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg or Bloomberg's licensors own all proprietary rights in the Bloomberg Indices. Bloomberg neither approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith. |
(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. |
July 1, 2021 through December 31, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 7/01/21 | Ending Account Value 12/31/21 | Expenses Paid During Period (p) 7/01/21-12/31/21 | |
Initial Class | Actual | 0.77% | $1,000.00 | $1,000.01 | $3.88 |
Hypothetical (h) | 0.77% | $1,000.00 | $1,021.32 | $3.92 | |
Service Class | Actual | 1.02% | $1,000.00 | $999.37 | $5.14 |
Hypothetical (h) | 1.02% | $1,000.00 | $1,020.06 | $5.19 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Bonds – 61.4% | ||||
Aerospace & Defense – 0.1% | ||||
Lockheed Martin Corp., 2.8%, 6/15/2050 | $ | 594,000 | $ 592,041 | |
Airlines – 0.2% | ||||
EasyJet FinCo B.V., 1.875%, 3/03/2028 | EUR | 630,000 | $ 719,526 | |
National Express Group PLC, 4.25%, 11/26/2069 | GBP | 300,000 | 413,305 | |
$1,132,831 | ||||
Apparel Manufacturers – 0.1% | ||||
Tapestry, Inc., 3.05%, 3/15/2032 | $ | 516,000 | $ 519,032 | |
Asset-Backed & Securitized – 5.0% | ||||
Acres PLC, 2021-FL2, “AS”, FLR, 1.84% (LIBOR - 1mo. + 1.75%), 1/15/2037 (z) | $ | 370,000 | $ 370,002 | |
Acres PLC, 2021-FL2, “B”, FLR, 2.352% (LIBOR - 1mo. + 2.25%), 1/15/2037 (z) | 604,000 | 604,003 | ||
Arbor Multi-Family Mortgage Securities Trust, Inc., 2021-MF2, “A5”, 2.513%, 6/15/2054 (n) | 612,000 | 626,224 | ||
Arbor Multi-Family Mortgage Securities Trust, Inc., 2021-MF3, “A5”, 2.575%, 10/15/2054 (i)(n) | 1,200,000 | 1,234,076 | ||
Arbor Realty Trust, Inc., CLO, 2019-FL2, “AS”, FLR, 1.614% (LIBOR - 1mo. + 1.45%), 9/15/2034 (n) | 600,000 | 599,813 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL1, “B”, FLR, 1.609% (LIBOR - 1mo. + 1.5%), 12/15/2035 (n) | 214,500 | 213,494 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL2, “B”, FLR, 1.71% (LIBOR - 1mo. + 1.6%), 5/15/2036 (n) | 143,000 | 142,374 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL2, “C”, FLR, 2.059% (LIBOR - 1mo. + 1.95%), 5/15/2036 (n) | 426,500 | 424,501 | ||
Barclays Commercial Mortgage Securities LLC, 2020-C7, “XA”, 1.627%, 4/15/2053 (i) | 994,548 | 97,390 | ||
BBCMS Mortgage Trust, 2021-C10, “XA”, 1.307%, 7/15/2054 (i) | 2,939,664 | 277,878 | ||
BBCMS Mortgage Trust, 2021-C9, “XA”, 1.638%, 2/15/2054 (i) | 6,696,953 | 785,492 | ||
Benchmark Mortgage Trust, 2021-B24, “XA”, 1.154%, 3/15/2054 (i) | 2,027,793 | 165,188 | ||
Benchmark Mortgage Trust, 2021-B26, “XA”, 0.999%, 6/15/2054 (i) | 5,583,216 | 362,561 | ||
Benchmark Mortgage Trust, 2021-B27, “XA”, 1.271%, 7/15/2054 (i) | 6,780,085 | 633,544 | ||
Benchmark Mortgage Trust, 2021-B28, “XA”, 1.291%, 8/15/2054 (i) | 5,308,439 | 498,889 | ||
BPCRE Holder LLC, FLR, 1.658% (LIBOR - 1mo. + 1.55%), 2/15/2037 (n) | 706,000 | 705,310 | ||
BSPRT Issuer Ltd., 2021-FL7, “B”, FLR, 2.15% (LIBOR - 1mo. + 2.05%), 12/15/2038 (n) | 177,500 | 177,500 | ||
BSPRT Issuer Ltd., 2021-FL7, “C”, FLR, 2.4% (LIBOR - 1mo. + 2.3%), 12/15/2038 (n) | 161,000 | 161,000 | ||
Business Jet Securities LLC, 2020-1A, “A”, 2.981%, 11/15/2035 (n) | 231,235 | 230,886 | ||
Business Jet Securities LLC, 2021-1A, “A”, 2.162%, 4/15/2036 (n) | 213,220 | 209,340 | ||
BXMT Ltd., 2021-FL4, “AS”, FLR, 1.409% (LIBOR - 1mo. + 1.3%), 5/15/2038 (n) | 900,000 | 897,187 | ||
BXMT Ltd., 2021-FL4, “B”, FLR, 1.659% (LIBOR - 1mo. + 1.55%), 5/15/2038 (n) | 1,797,000 | 1,789,136 | ||
Capital Automotive, 2020-1A, “A4”, REIT, 3.19%, 2/15/2050 (n) | 261,194 | 266,050 | ||
CF Hippolyta Issuer LLC, 2020-1, “A1”, 1.69%, 7/15/2060 (n) | 201,862 | 200,239 | ||
Commercial Mortgage Pass-Through Certificates, 2020-BN28, “A4”, 1.844%, 3/15/2063 | 237,641 | 231,648 | ||
Commercial Mortgage Pass-Through Certificates, 2020-BN29, “A4”, 1.997%, 11/15/2053 | 1,033,946 | 1,019,472 | ||
Commercial Mortgage Pass-Through Certificates, 2021-BN32, “XA”, 0.783%, 4/15/2054 (i) | 1,240,544 | 70,607 | ||
Commercial Mortgage Pass-Through Certificates, 2021-BN34, “A5”, 2.438%, 6/15/2063 | 1,021,000 | 1,040,822 | ||
Commercial Mortgage Pass-Through Certificates, 2021-BN34, “XA”, 0.979%, 6/15/2063 (i) | 2,971,484 | 216,880 | ||
Commercial Mortgage Pass-Through Certificates, 2021-BN35, “XA”, 1.053%, 6/15/2064 (i) | 2,951,340 | 231,838 | ||
Credit Acceptance Auto Loan Trust, 2021-3A, “A”, 1%, 5/15/2030 (n) | 738,000 | 731,949 | ||
FS Rialto 2019-FL1 Issuer Ltd., 2021-FL2, “AS”, FLR, 1.657% (LIBOR - 1mo. + 1.6%), 4/16/2028 (n) | 701,500 | 701,019 | ||
LoanCore Ltd., 2021-CRE5, “AS”, FLR, 1.859% (LIBOR - 1mo. + 1.75%), 7/15/2036 (n) | 865,000 | 863,933 | ||
LoanCore Ltd., 2021-CRE5, “B”, FLR, 2.11% (LIBOR - 1mo. + 2%), 7/15/2036 (n) | 367,000 | 366,295 | ||
MF1 CLO Ltd., 2020-FL3, “AS”, FLR, 3.014% (LIBOR - 1mo. + 2.85%), 7/15/2035 (z) | 357,000 | 361,550 | ||
MF1 CLO Ltd., 2021-FL5, “AS”, FLR, 1.364% (LIBOR - 1mo. + 1.2%), 7/15/2036 (n) | 677,000 | 676,400 | ||
MF1 CLO Ltd., 2021-FL5, “B”, FLR, 1.614% (LIBOR - 1mo. + 1.45%), 7/15/2036 (n) | 847,500 | 843,849 | ||
MF1 CLO Ltd., 2021-FL5, “C”, FLR, 1.864% (LIBOR - 1mo. + 1.7%), 7/15/2036 (n) | 200,000 | 199,941 | ||
MF1 CLO Ltd., 2021-FL6, “AS”, FLR, 1.557% (LIBOR - 1mo. + 1.45%), 7/16/2036 (n) | 1,050,000 | 1,048,083 | ||
Morgan Stanley Capital I Trust, 2021-L5, “XA”, 1.3%, 5/15/2054 (i) | 2,263,826 | 208,555 | ||
Morgan Stanley Capital I Trust, 2021-L6, “XA”, 1.237%, 6/15/2054 (i) | 4,885,322 | 408,938 | ||
Multi-Family Housing Mortgage, MF1-2021, “B”, FLR, 1.757% (LIBOR - 1mo. + 1.65%), 7/16/2036 (n) | 1,000,000 | 998,228 | ||
PFP III Ltd., 2021-7, “AS”, FLR, 1.259% (LIBOR - 1mo. + 1.15%), 4/14/2038 (n) | 612,469 | 609,523 | ||
PFP III Ltd., 2021-7, “B”, FLR, 1.507% (LIBOR - 1mo. + 1.4%), 4/14/2038 (n) | 239,988 | 237,809 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Asset-Backed & Securitized – continued | ||||
PFP III Ltd., 2021-8, “B”, FLR, 1.608% (LIBOR - 1mo. + 1.5%), 8/09/2037 (n) | $ | 238,000 | $ 237,145 | |
Starwood Commercial Mortgage, 2021-FL2, “AS”, FLR, 1.558% (LIBOR - 1mo. + 1.45%), 4/18/2038 (n) | 700,000 | 699,562 | ||
Starwood Commercial Mortgage, 2021-FL2, “B”, FLR, 1.908% (LIBOR - 1mo. + 1.8%), 4/18/2038 (n) | 534,500 | 534,165 | ||
TPG Real Estate Finance, 2021-FL4, “A”, FLR, 1.309% (LIBOR - 1mo. + 1.2%), 3/15/2038 (n) | 325,500 | 325,297 | ||
TPG Real Estate Finance, 2021-FL4, “AS”, FLR, 1.508% (LIBOR - 1mo. + 1.4%), 3/15/2038 (n) | 350,000 | 349,125 | ||
Wells Fargo Commercial Mortgage Trust, 2020-C58, “A4”, 2.092%, 7/15/2053 | 418,000 | 413,715 | ||
Wells Fargo Commercial Mortgage Trust, 2021-C60, “XA”, 1.557%, 8/15/2054 (i) | 4,990,206 | 578,353 | ||
$25,876,778 | ||||
Automotive – 0.7% | ||||
Daimler Finance North America LLC, 1.45%, 3/02/2026 (n) | $ | 817,000 | $ 808,828 | |
Daimler Trucks Finance North America LLC, 2.5%, 12/14/2031 (n) | 322,000 | 321,960 | ||
Faurecia SE, 2.75%, 2/15/2027 | EUR | 635,000 | 736,206 | |
Hyundai Capital America, 2%, 6/15/2028 (n) | $ | 400,000 | 389,968 | |
Hyundai Capital America, 6.375%, 4/08/2030 (n) | 742,000 | 935,238 | ||
Volkswagen International Finance N.V., 3.5% to 3/20/2030, FLR (EUR Swap Rate - 15yr. + 3.06%) to 3/20/2050, FLR (EUR Swap Rate - 15yr. + 3.81%) to 12/29/2166 | EUR | 470,000 | 574,558 | |
$3,766,758 | ||||
Broadcasting – 0.2% | ||||
Discovery, Inc., 4.125%, 5/15/2029 | $ | 664,000 | $ 734,083 | |
Prosus N.V., 1.539%, 8/03/2028 | EUR | 300,000 | 344,160 | |
Prosus N.V., 3.68%, 1/21/2030 (n) | $ | 200,000 | 205,832 | |
$1,284,075 | ||||
Brokerage & Asset Managers – 0.2% | ||||
Intercontinental Exchange, Inc., 3%, 9/15/2060 | $ | 417,000 | $ 410,210 | |
Low Income Investment Fund, 3.386%, 7/01/2026 | 150,000 | 155,853 | ||
Low Income Investment Fund, 3.711%, 7/01/2029 | 400,000 | 425,376 | ||
$991,439 | ||||
Building – 0.4% | ||||
CRH America Finance, Inc., 4.5%, 4/04/2048 (n) | $ | 347,000 | $ 423,134 | |
Holcim Sterling Finance (Netherlands) B.V., 2.25%, 4/04/2034 | GBP | 470,000 | 623,184 | |
Imerys S.A., 1%, 7/15/2031 | EUR | 500,000 | 555,559 | |
Vulcan Materials Co., 3.5%, 6/01/2030 | $ | 453,000 | 489,286 | |
$2,091,163 | ||||
Business Services – 0.7% | ||||
Equinix, Inc., REIT, 1%, 3/15/2033 | EUR | 645,000 | $ 704,865 | |
Euronet Worldwide, Inc., 1.375%, 5/22/2026 | 680,000 | 788,524 | ||
Fiserv, Inc., 4.4%, 7/01/2049 | $ | 356,000 | 424,119 | |
Nexi S.p.A., 2.125%, 4/30/2029 | EUR | 260,000 | 289,903 | |
NXP Semiconductors N.V., 3.4%, 5/01/2030 (n) | $ | 813,000 | 866,423 | |
Visa, Inc., 3.65%, 9/15/2047 | 596,000 | 693,588 | ||
$3,767,422 | ||||
Cable TV – 0.4% | ||||
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 6.384%, 10/23/2035 | $ | 262,000 | $ 338,437 | |
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 4.8%, 3/01/2050 | 267,000 | 298,943 | ||
Eutelsat S.A., 2.25%, 7/13/2027 | EUR | 500,000 | 591,042 | |
Eutelsat S.A., 1.5%, 10/13/2028 | 300,000 | 344,738 | ||
Time Warner Cable, Inc., 4.5%, 9/15/2042 | $ | 388,000 | 423,002 | |
$1,996,162 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Chemicals – 0.1% | ||||
Alpek SAB de C.V., 3.25%, 2/25/2031 (n) | $ | 219,000 | $ 218,453 | |
SCIL IV LLC/SCIL USA Holdings LLC, 4.375%, 11/01/2026 | EUR | 310,000 | 358,670 | |
$577,123 | ||||
Computer Software – 0.3% | ||||
Microsoft Corp., 2.525%, 6/01/2050 | $ | 523,000 | $ 510,023 | |
Microsoft Corp., 2.921%, 3/17/2052 | 455,000 | 483,082 | ||
Microsoft Corp., 2.675%, 6/01/2060 | 228,000 | 227,247 | ||
VeriSign, Inc., 4.75%, 7/15/2027 | 347,000 | 360,446 | ||
$1,580,798 | ||||
Computer Software - Systems – 0.2% | ||||
Apple, Inc., 4.5%, 2/23/2036 | $ | 947,000 | $ 1,188,124 | |
Conglomerates – 0.7% | ||||
Carrier Global Corp., 2.722%, 2/15/2030 | $ | 402,000 | $ 410,539 | |
Carrier Global Corp., 3.577%, 4/05/2050 | 822,000 | 873,973 | ||
Grupo KUO S.A.B. de C.V., 5.75%,��7/07/2027 (n) | 919,000 | 945,890 | ||
Highland Holdings S.á r.l. Co., 0.318%, 12/15/2026 | EUR | 163,000 | 185,113 | |
Highland Holdings S.á r.l. Co., 0.934%, 12/15/2031 | 140,000 | 159,565 | ||
Westinghouse Air Brake Technologies Corp., 4.95%, 9/15/2028 | $ | 746,000 | 847,986 | |
$3,423,066 | ||||
Consumer Products – 0.2% | ||||
JAB Holdings B.V., 1%, 7/14/2031 | EUR | 400,000 | $ 441,809 | |
JAB Holdings B.V., 2.25%, 12/19/2039 | 300,000 | 353,395 | ||
Reckitt Benckiser Treasury Services PLC, 3%, 6/26/2027 (n) | $ | 425,000 | 450,968 | |
$1,246,172 | ||||
Consumer Services – 0.1% | ||||
AA Bond Co. Ltd., 3.25%, 7/31/2028 | GBP | 330,000 | $ 442,291 | |
Containers – 0.1% | ||||
DS Smith PLC, 2.875%, 7/26/2029 | GBP | 270,000 | $ 379,590 | |
Electrical Equipment – 0.1% | ||||
Telefonaktiebolaget LM Ericsson, 1%, 5/26/2029 | EUR | 640,000 | $ 710,220 | |
Electronics – 0.1% | ||||
Broadcom, Inc., 4.15%, 11/15/2030 | $ | 228,000 | $ 252,865 | |
Broadcom, Inc., 3.469%, 4/15/2034 (n) | 240,000 | 251,200 | ||
Broadcom, Inc., 3.137%, 11/15/2035 (n) | 174,000 | 175,037 | ||
Broadcom, Inc., 3.187%, 11/15/2036 (n) | 12,000 | 11,979 | ||
$691,081 | ||||
Emerging Market Quasi-Sovereign – 1.6% | ||||
China Construction Bank Corp., Hong Kong Branch, 1.25%, 8/04/2025 | $ | 900,000 | $ 887,814 | |
Emirates Development Bank PJSC, 1.639%, 6/15/2026 | 970,000 | 964,422 | ||
Export-Import Bank of India, 3.375%, 8/05/2026 | 600,000 | 628,669 | ||
Export-Import Bank of India, 3.875%, 2/01/2028 | 600,000 | 641,582 | ||
First Abu Dhabi Bank PJSC, 0.125%, 2/16/2026 | EUR | 600,000 | 679,479 | |
Huarong Finance 2017 Co. Ltd., 4.95%, 11/07/2047 | $ | 470,000 | 451,788 | |
MDGH - GMTN B.V. (United Arab Emirates), 2.5%, 11/07/2024 | 398,000 | 409,767 | ||
MDGH - GMTN B.V. (United Arab Emirates), 1%, 3/10/2034 | EUR | 760,000 | 859,272 | |
MDGH - GMTN RSC Ltd. (United Arab Emirates), 2.5%, 6/03/2031 | $ | 830,000 | 837,302 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Emerging Market Quasi-Sovereign – continued | ||||
Ooredoo International Finance Ltd. (State of Qatar), 2.625%, 4/08/2031 | $ | 470,000 | $ 471,762 | |
PT Pertamina (Persero) (Republic of Indonesia), 3.65%, 7/30/2029 | 550,000 | 583,709 | ||
Qatar Petroleum, 2.25%, 7/12/2031 | 664,000 | 657,737 | ||
Qatar Petroleum, 3.125%, 7/12/2041 | 436,000 | 440,629 | ||
$8,513,932 | ||||
Emerging Market Sovereign – 9.7% | ||||
Arab Republic of Egypt, 7.052%, 1/15/2032 | $ | 300,000 | $ 276,480 | |
Dominican Republic, 4.875%, 9/23/2032 | 750,000 | 762,187 | ||
Federative Republic of Brazil, 10%, 1/01/2023 | BRL | 20,400,000 | 3,603,753 | |
Kingdom of Morocco, 2.375%, 12/15/2027 | $ | 450,000 | 438,188 | |
Oriental Republic of Uruguay, 4.375%, 1/23/2031 | 1,309,000 | 1,506,999 | ||
Oriental Republic of Uruguay, 8.25%, 5/21/2031 | UYU | 82,148,000 | 1,768,112 | |
People's Republic of China, 3.03%, 3/11/2026 | CNY | 88,630,000 | 14,155,748 | |
People's Republic of China, 2.68%, 5/21/2030 | 43,550,000 | 6,731,628 | ||
Republic of Chile, 4.7%, 9/01/2030 | CLP | 775,000,000 | 853,094 | |
Republic of Cote d'Ivoire, 6.875%, 10/17/2040 | EUR | 600,000 | 712,145 | |
Republic of Guatemala, 3.7%, 10/07/2033 | $ | 227,000 | 223,879 | |
Republic of Korea, 1.875%, 6/10/2029 | KRW | 8,628,190,000 | 7,091,448 | |
Republic of Korea, 1.375%, 6/10/2030 | 5,259,400,000 | 4,122,407 | ||
Republic of Peru, 1.95%, 11/17/2036 | EUR | 766,000 | 856,055 | |
Republic of South Africa, 8.25%, 3/31/2032 | ZAR | 80,050,000 | 4,531,187 | |
State of Qatar, 4%, 3/14/2029 (n) | $ | 462,000 | 520,480 | |
State of Qatar, 4.4%, 4/16/2050 | 200,000 | 248,458 | ||
United Arab Emirates International Government, 3.25%, 10/19/2061 | 345,000 | 359,317 | ||
United Mexican States, 2.659%, 5/24/2031 | 1,246,000 | 1,214,862 | ||
United Mexican States, 3.771%, 5/24/2061 | 534,000 | 491,686 | ||
$50,468,113 | ||||
Energy - Independent – 0.4% | ||||
Diamondback Energy, Inc., 4.4%, 3/24/2051 | $ | 644,000 | $ 738,160 | |
Energean Israel Finance Ltd., 4.875%, 3/30/2026 | 325,000 | 322,156 | ||
Tengizchevroil Finance Co. International Ltd., 4%, 8/15/2026 (n) | 1,200,000 | 1,266,499 | ||
$2,326,815 | ||||
Energy - Integrated – 0.7% | ||||
Cenovus Energy, Inc., 2.65%, 1/15/2032 | $ | 522,000 | $ 510,710 | |
Eni S.p.A., 4.25%, 5/09/2029 (n) | 578,000 | 650,106 | ||
Eni S.p.A., 2.625% to 1/13/2026, FLR (EUR Swap Rate - 5yr. + 3.167%) to 1/13/2031, FLR (EUR Swap Rate - 5yr. + 3.417%) to 1/13/2046, FLR (EUR Swap Rate - 5yr. + 4.167%) to 1/13/2170 | EUR | 119,000 | 140,223 | |
Eni S.p.A., 2.75% to 5/11/2030, FLR (EUR Swap Rate - 5yr. + 2.771%) to 5/11/2035, FLR (EUR Swap Rate - 5yr. + 3.021%) to 5/11/2050, FLR (EUR Swap Rate - 5yr. + 3.771%) to 5/11/2170 | 560,000 | 636,725 | ||
Galp Energia SGPS S.A., 2%, 1/15/2026 | 700,000 | 833,491 | ||
MOL PLC, 1.5%, 10/08/2027 | 410,000 | 473,310 | ||
OMV AG, 2.5% to 9/01/2026, FLR (EUR Swap Rate - 5yr. + 2.82%) to 9/01/2030, FLR (EUR Swap Rate - 5yr. + 3.82%) to 9/01/2070 | 200,000 | 235,920 | ||
$3,480,485 | ||||
Entertainment – 0.1% | ||||
Royal Caribbean Cruises Ltd., 4.25%, 7/01/2026 (n) | $ | 682,000 | $ 660,582 | |
Financial Institutions – 1.5% | ||||
Adler Group S.A., 2.75%, 11/13/2026 | EUR | 400,000 | $ 382,536 | |
Adler Group S.A., 2.25%, 4/27/2027 | 300,000 | 286,048 | ||
Adler Group S.A., 2.25%, 1/14/2029 | 500,000 | 471,054 | ||
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 3.65%, 7/21/2027 | $ | 1,173,000 | 1,236,131 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Financial Institutions – continued | ||||
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 3.3%, 1/30/2032 | $ | 209,000 | $ 212,923 | |
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 3.85%, 10/29/2041 | 166,000 | 172,912 | ||
Atrium European Real Estate Ltd., 3.625% to 11/04/2026, FLR (EUR Swap Rate - 5yr. + 3.625%) to 11/04/2031, FLR (EUR Swap Rate - 5yr. + 4.625%) to 5/04/2170 | EUR | 425,000 | 436,686 | |
Avolon Holdings Funding Ltd., 4.25%, 4/15/2026 (n) | $ | 263,000 | 278,700 | |
Avolon Holdings Funding Ltd., 4.375%, 5/01/2026 (n) | 266,000 | 284,902 | ||
Avolon Holdings Funding Ltd., 2.75%, 2/21/2028 (n) | 335,000 | 328,706 | ||
Crédit Logement S.A., 1.081%, 2/15/2034 | EUR | 600,000 | 679,076 | |
CTP N.V., 1.25%, 6/21/2029 | 370,000 | 411,865 | ||
CTP N.V., 1.5%, 9/27/2031 | 570,000 | 627,385 | ||
EXOR N.V., 0.875%, 1/19/2031 | 275,000 | 306,325 | ||
Logicor Financing S.à r.l., 0.875%, 1/14/2031 | 200,000 | 216,012 | ||
Samhallsbyggnadsbolaget i Norden AB, 2.625%, 3/14/2170 | 300,000 | 331,099 | ||
VGP Group LLC, 1.5%, 4/08/2029 | 500,000 | 554,914 | ||
Vonovia SE, 1.5%, 6/14/2041 | 400,000 | 437,356 | ||
Vonovia SE, 1.625%, 9/01/2051 | 300,000 | 312,271 | ||
$7,966,901 | ||||
Food & Beverages – 1.1% | ||||
Anheuser-Busch InBev Worldwide, Inc., 4.375%, 4/15/2038 | $ | 206,000 | $ 241,238 | |
Anheuser-Busch InBev Worldwide, Inc., 5.55%, 1/23/2049 | 513,000 | 709,714 | ||
Aramark Services, Inc., 6.375%, 5/01/2025 (n) | 400,000 | 418,000 | ||
Bacardi Ltd., 5.15%, 5/15/2038 (n) | 335,000 | 413,808 | ||
Constellation Brands, Inc., 4.4%, 11/15/2025 | 481,000 | 527,228 | ||
Constellation Brands, Inc., 3.15%, 8/01/2029 | 776,000 | 818,454 | ||
Constellation Brands, Inc., 2.25%, 8/01/2031 | 478,000 | 467,181 | ||
JDE Peet's N.V., 0.625%, 2/09/2028 | EUR | 280,000 | 315,697 | |
JDE Peet's N.V., 0.5%, 1/16/2029 | 340,000 | 376,787 | ||
PepsiCo, Inc., 0.75%, 10/14/2033 | 381,000 | 431,144 | ||
PT Indofood CBP Sukses Makmur Tbk, 3.398%, 6/09/2031 | $ | 950,000 | 956,730 | |
$5,675,981 | ||||
Gaming & Lodging – 0.6% | ||||
Accor S.A., 2.375%, 11/29/2028 | EUR | 500,000 | $ 569,990 | |
Hilton Domestic Operating Co., Inc., 3.625%, 2/15/2032 (n) | $ | 450,000 | 447,633 | |
InterContinental Hotels Group PLC, 3.375%, 10/08/2028 | GBP | 410,000 | 581,381 | |
Las Vegas Sands Corp., 3.9%, 8/08/2029 | $ | 550,000 | 553,834 | |
Marriott International, Inc., 2.85%, 4/15/2031 | 499,000 | 497,473 | ||
Whitbread Group PLC, 3%, 5/31/2031 | GBP | 225,000 | 306,873 | |
$2,957,184 | ||||
Industrial – 0.3% | ||||
CPI Property Group S.A., 3.75% to 7/27/2028, FLR (EUR Swap Rate - 5yr. + 4.338%) to 7/27/2033, FLR (EUR Swap Rate - 5yr. + 4.588%) to 7/27/2048, FLR (EUR Swap Rate - 5yr. + 5.338%) to 1/27/2170 | EUR | 660,000 | $ 705,416 | |
Trustees of the University of Pennsylvania, 2.396%, 10/01/2050 | $ | 845,000 | 805,737 | |
$1,511,153 | ||||
Insurance – 0.8% | ||||
AIA Group Ltd., 0.88% to 9/09/2028, FLR (EUR Swap Rate - 5yr. + 1.1%) to 9/09/2033 | EUR | 340,000 | $ 380,857 | |
Argentum Netherlands B.V., 5.125%, 6/01/2048 | $ | 360,000 | 400,500 | |
Aviva PLC, 4% to 6/03/2035, FLR (GBP Government Yield - 5yr. + 4.7%) to 6/03/2055 | GBP | 575,000 | 838,119 | |
CNP Assurances, 4.75%, 6/27/2028 | EUR | 600,000 | 770,195 | |
Credit Agricole Assurances S.A., 2%, 7/17/2030 | 200,000 | 235,071 | ||
La Mondiale, 4.375% to 10/24/2029, FLR (EUR Swap Rate - 5yr. + 4.411%) to 4/24/2069 | 600,000 | 738,499 | ||
Zurich Finance (Ireland) DAC, 1.875% to 9/17/2030, FLR (EURIBOR - 3mo. + 2.95%) to 9/17/2050 | 386,000 | 450,969 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Insurance – continued | ||||
Zurich Finance (Ireland) DAC, 3% to 4/19/2031, FLR (CMT - 5yr. + 2.777%) to 4/19/2051 | $ | 430,000 | $ 417,515 | |
$4,231,725 | ||||
Insurance - Property & Casualty – 0.5% | ||||
Aon Corp./Aon Global Holdings PLC, 2.6%, 12/02/2031 | $ | 130,000 | $ 132,261 | |
Hartford Financial Services Group, Inc., 3.6%, 8/19/2049 | 626,000 | 685,185 | ||
Marsh & McLennan Cos., Inc., 2.25%, 11/15/2030 | 340,000 | 339,287 | ||
QBE Insurance Group Ltd., 2.5% to 9/13/2028, FLR (GBP Government Yield - 5yr. + 2.061%) to 9/13/2038 | GBP | 408,000 | 528,651 | |
Willis North America, Inc., 3.875%, 9/15/2049 | $ | 621,000 | 673,845 | |
$2,359,229 | ||||
International Market Quasi-Sovereign – 0.5% | ||||
Electricite de France S.A., 1%, 11/29/2033 | EUR | 200,000 | $ 225,600 | |
Electricite de France S.A., 2.625% to 6/01/2028, FLR (EUR Swap Rate - 5yr. + 2.86%) to 6/01/2033, FLR (EUR Swap Rate - 5yr. + 3.11%) to 6/01/2048, FLR (EUR Swap Rate - 5yr. + 3.86%) to 12/29/2049 | 400,000 | 456,538 | ||
Electricite de France S.A., 2.875% to 3/15/2027, FLR (EUR Swap Rate - 5yr. + 3.373%) to 3/15/2031, FLR (EUR Swap Rate - 5yr. + 3.623%) to 3/15/2047, FLR (EUR Swap Rate - 5yr. + 4.373%) to 3/15/2070 | 600,000 | 700,177 | ||
Electricite de France S.A., 5.875% to 1/22/2029, FLR (GBP Swap Rate - 15yr. + 3.046%) to 1/22/2049, FLR (GBP Swap Rate - 15yr. + 3.796%) to 12/31/2165 | GBP | 400,000 | 595,562 | |
La Banque Postale S.A. (Republic of France), 0.875% to 1/26/2026, FLR (EUR Swap Rate - 5yr. + 1.38%) to 1/26/2031 | EUR | 300,000 | 337,517 | |
Ontario Teachers' Cadillac Fairview Properties, 2.5%, 10/15/2031 (n) | $ | 517,000 | 514,607 | |
$2,830,001 | ||||
International Market Sovereign – 10.9% | ||||
Commonwealth of Australia, 3.25%, 6/21/2039 | AUD | 5,095,000 | $ 4,297,185 | |
Government of Bermuda, 2.375%, 8/20/2030 (n) | $ | 220,000 | 219,450 | |
Government of Canada, 4%, 6/01/2041 | CAD | 1,604,000 | 1,760,970 | |
Government of Japan, 0.4%, 3/20/2036 | JPY | 261,100,000 | 2,309,292 | |
Government of Japan, 2.3%, 3/20/2040 | 1,368,300,000 | 15,776,786 | ||
Government of Japan, 0.6%, 9/20/2050 | 212,900,000 | 1,813,990 | ||
Kingdom of Belgium, 0.4%, 6/22/2040 (n) | EUR | 2,488,000 | 2,693,413 | |
Kingdom of Spain, 1.25%, 10/31/2030 (n) | 6,227,000 | 7,596,226 | ||
Kingdom of Spain, 1.85%, 7/30/2035 | 4,531,000 | 5,819,454 | ||
Republic of Cyprus, 0%, 2/09/2026 | 879,000 | 993,176 | ||
Republic of Cyprus, 0.625%, 1/21/2030 | 1,196,000 | 1,358,556 | ||
Republic of Italy, 0.5%, 7/15/2028 | 2,132,000 | 2,395,144 | ||
Republic of Italy, 0.6%, 8/01/2031 (n) | 2,265,000 | 2,454,729 | ||
Republic of Italy, 1.65%, 3/01/2032 | 4,077,000 | 4,864,007 | ||
Republic of Italy, 1.7%, 9/01/2051 | 1,029,000 | 1,097,697 | ||
United Kingdom Treasury, 1.75%, 9/07/2037 | GBP | 716,000 | 1,050,325 | |
United Kingdom Treasury, 1.75%, 1/22/2049 | 325,000 | 501,465 | ||
$57,001,865 | ||||
Leisure & Toys – 0.1% | ||||
Ubisoft Entertainment S.A., 0.878%, 11/24/2027 | EUR | 600,000 | $ 667,806 | |
Local Authorities – 0.9% | ||||
Oslo kommune, 2.17%, 5/18/2029 | NOK | 7,000,000 | $ 789,545 | |
Province of Alberta, 4.5%, 12/01/2040 | CAD | 665,000 | 679,725 | |
Province of British Columbia, 2.95%, 6/18/2050 | 300,000 | 263,513 | ||
Province of Ontario, 1.9%, 12/02/2051 | 4,463,000 | 3,120,025 | ||
$4,852,808 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Machinery & Tools – 0.2% | ||||
CNH Industrial Capital LLC, 1.875%, 1/15/2026 | $ | 611,000 | $ 611,260 | |
Sarens Finance Co. N.V., 5.75%, 2/21/2027 | EUR | 260,000 | 291,792 | |
$903,052 | ||||
Major Banks – 2.6% | ||||
Australia and New Zealand Banking Group Ltd., 2.57%, 11/25/2035 (n) | $ | 528,000 | $ 505,568 | |
Banco de Sabadell S.A., 5% to 11/19/2027, FLR (EUR Swap Rate - 5yr. + 5.171%) to 2/19/2170 | EUR | 600,000 | 686,515 | |
Bank of America Corp., 3.5%, 4/19/2026 | $ | 1,079,000 | 1,162,286 | |
Bank of America Corp., 3.419% to 12/20/2027, FLR (LIBOR - 3mo. + 1.04%) to 12/20/2028 | 279,000 | 297,878 | ||
Bank of America Corp., 0.694% to 3/22/2030, FLR (EURIBOR - 3mo. + 0.79%) to 3/22/2031 | EUR | 350,000 | 392,257 | |
Bank of America Corp., 2.687% to 4/22/2031, FLR (SOFR + 1.32%) to 4/22/2032 | $ | 917,000 | 930,596 | |
Barclays PLC, 1.125% to 3/22/2026, FLR (EUR Swap Rate - 5yr. + 1.55%) to 3/22/2031 | EUR | 250,000 | 283,965 | |
Commonwealth Bank of Australia, 2.688%, 3/11/2031 (n) | $ | 735,000 | 722,809 | |
Credit Suisse Group AG, 3.091% to 5/14/2031, FLR (SOFR + 1.73%) to 5/14/2032 (n) | 250,000 | 254,388 | ||
Deutsche Bank AG, 3.729% to 1/14/2031, FLR (SOFR + 2.757%) to 1/14/2032 | 618,000 | 631,794 | ||
Goldman Sachs Group, Inc., 2.383% to 7/21/2031, FLR (SOFR + 1.248%) to 7/21/2032 | 615,000 | 605,527 | ||
HSBC Holdings PLC, 2.099% to 6/04/2025, FLR (SOFR + 1.929%) to 6/04/2026 | 535,000 | 538,467 | ||
JPMorgan Chase & Co., 3.54%, 5/01/2028 | 605,000 | 657,050 | ||
JPMorgan Chase & Co., 3.109% to 4/22/2050, FLR (SOFR + 2.44%) to 4/22/2051 | 669,000 | 691,191 | ||
Mitsubishi UFJ Financial Group, Inc., 2.494% to 10/13/2031, FLR (CMT - 1yr. + 0.97%) to 10/13/2032 | 271,000 | 271,335 | ||
Morgan Stanley, 1.593% to 5/04/2026, FLR (SOFR + 0.879%) to 5/04/2027 | 1,146,000 | 1,134,703 | ||
Morgan Stanley, 3.622% to 4/01/2030, FLR (SOFR + 3.12%) to 4/01/2031 | 276,000 | 300,755 | ||
Morgan Stanley, 1.102%, 4/29/2033 | EUR | 345,000 | 392,381 | |
Natwest Group PLC, 1.043% to 9/14/2027, FLR (EUR Swap Rate - 5yr. + 1.27%) to 9/14/2032 | 170,000 | 190,583 | ||
Nordea Bank Abp, 1.625% to 12/09/2027, FLR (GBP Government Yield - 5yr. + 1.3%) to 12/09/2032 | GBP | 230,000 | 299,068 | |
Standard Chartered PLC, 0.8% to 11/17/2028, FLR (EUR Swap Rate - 1yr. + 0.85%) to 11/17/2029 | EUR | 340,000 | 384,731 | |
Unicaja Banco S.A., 1% to 12/01/2025, FLR (EUR ICE Swap Rate - 1yr. + 1.15%) to 12/01/2026 | 500,000 | 566,671 | ||
UniCredit S.p.A., 2.2% to 7/22/2026, FLR (EURIBOR - 3mo. + 2.55%) to 7/22/2027 | 787,000 | 944,220 | ||
Wells Fargo & Co., 2.125%, 9/24/2031 | GBP | 570,000 | 767,063 | |
$13,611,801 | ||||
Medical & Health Technology & Services – 1.0% | ||||
Alcon, Inc., 3.8%, 9/23/2049 (n) | $ | 626,000 | $ 697,052 | |
Becton Dickinson Euro Finance S.à r.l., 1.213%, 2/12/2036 | EUR | 100,000 | 110,952 | |
Becton Dickinson Euro Finance S.à r.l., 1.336%, 8/13/2041 | 190,000 | 205,715 | ||
HCA, Inc., 5.25%, 6/15/2026 | $ | 559,000 | 628,637 | |
HCA, Inc., 5.125%, 6/15/2039 | 195,000 | 240,148 | ||
Laboratory Corp. of America Holdings, 3.6%, 2/01/2025 | 550,000 | 580,580 | ||
Memorial Sloan-Kettering Cancer Center, 2.955%, 1/01/2050 | 350,000 | 357,506 | ||
New York Society for the Relief of the Ruptured & Crippled, 2.667%, 10/01/2050 | 650,000 | 607,743 | ||
ProMedica Toledo Hospital, “B”, AGM, 6.015%, 11/15/2048 | 309,000 | 451,997 | ||
Thermo Fisher Scientific (Finance I) Co., 1.125%, 10/18/2033 | EUR | 390,000 | 450,464 | |
Thermo Fisher Scientific (Finance I) Co., 2%, 10/18/2051 | 210,000 | 246,309 | ||
Thermo Fisher Scientific, Inc., 1.75%, 10/15/2028 | $ | 626,000 | 621,910 | |
$5,199,013 | ||||
Metals & Mining – 0.2% | ||||
Anglo American Capital PLC, 5.625%, 4/01/2030 (n) | $ | 326,000 | $ 386,260 | |
Glencore Funding LLC, 2.85%, 4/27/2031 (n) | 590,000 | 583,202 | ||
$969,462 | ||||
Midstream – 0.7% | ||||
Enterprise Products Partners LP, 3.125%, 7/31/2029 | $ | 446,000 | $ 473,608 | |
Galaxy Pipeline Assets Bidco Ltd., 2.16%, 3/31/2034 (n) | 548,000 | 537,106 | ||
Plains All American Pipeline LP/PAA Finance Corp., 3.55%, 12/15/2029 | 1,023,000 | 1,059,752 | ||
Sabine Pass Liquefaction LLC, 5%, 3/15/2027 | 356,000 | 399,850 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Midstream – continued | ||||
Sabine Pass Liquefaction LLC, 4.2%, 3/15/2028 | $ | 730,000 | $ 799,621 | |
Sabine Pass Liquefaction LLC, 4.5%, 5/15/2030 | 335,000 | 377,888 | ||
$3,647,825 | ||||
Mortgage-Backed – 4.1% | ||||
Fannie Mae, 4.5%, 7/01/2023 - 2/01/2046 | $ | 3,284,227 | $ 3,618,316 | |
Fannie Mae, 5%, 3/01/2036 - 8/01/2040 | 1,104,376 | 1,247,097 | ||
Fannie Mae, 5.5%, 11/01/2036 - 4/01/2037 | 92,931 | 105,999 | ||
Fannie Mae, 6%, 9/01/2037 - 6/01/2038 | 132,401 | 152,138 | ||
Fannie Mae, 4%, 11/01/2040 - 12/01/2040 | 745,358 | 816,456 | ||
Fannie Mae, 3.5%, 5/01/2043 - 12/01/2046 | 1,662,797 | 1,783,893 | ||
Fannie Mae, UMBS, 2.5%, 6/01/2050 - 12/01/2051 | 338,951 | 350,273 | ||
Fannie Mae, UMBS, 2%, 1/01/2051 - 2/01/2051 | 605,793 | 606,542 | ||
Fannie Mae, UMBS, 3%, 12/01/2051 | 204,687 | 213,879 | ||
Freddie Mac, 4%, 7/01/2025 | 36,862 | 38,711 | ||
Freddie Mac, 1.367%, 3/25/2027 (i) | 809,000 | 54,101 | ||
Freddie Mac, 3.286%, 11/25/2027 | 1,303,000 | 1,424,533 | ||
Freddie Mac, 3.9%, 4/25/2028 | 400,000 | 453,220 | ||
Freddie Mac, 1.798%, 4/25/2030 (i) | 1,420,926 | 193,129 | ||
Freddie Mac, 1.868%, 4/25/2030 (i) | 1,365,340 | 192,705 | ||
Freddie Mac, 1.662%, 5/25/2030 (i) | 1,747,943 | 222,720 | ||
Freddie Mac, 1.796%, 5/25/2030 (i) | 3,920,368 | 537,102 | ||
Freddie Mac, 1.341%, 6/25/2030 (i) | 1,615,349 | 167,709 | ||
Freddie Mac, 1.599%, 8/25/2030 (i) | 1,436,842 | 179,907 | ||
Freddie Mac, 1.169%, 9/25/2030 (i) | 905,456 | 84,453 | ||
Freddie Mac, 1.081%, 11/25/2030 (i) | 1,823,916 | 160,300 | ||
Freddie Mac, 0.33%, 1/25/2031 (i) | 6,728,823 | 173,818 | ||
Freddie Mac, 0.529%, 3/25/2031 (i) | 8,189,128 | 346,652 | ||
Freddie Mac, 0.937%, 7/25/2031 (i) | 1,499,257 | 123,553 | ||
Freddie Mac, 0.536%, 9/25/2031 (i) | 6,201,367 | 301,832 | ||
Freddie Mac, 0.855%, 9/25/2031 (i) | 1,902,494 | 143,594 | ||
Freddie Mac, 0.567%, 12/25/2031 (i) | 1,517,361 | 75,627 | ||
Freddie Mac, 5.5%, 5/01/2034 - 7/01/2037 | 20,424 | 23,073 | ||
Freddie Mac, 5%, 10/01/2036 - 7/01/2041 | 316,560 | 356,815 | ||
Freddie Mac, 4.5%, 12/01/2039 - 5/01/2042 | 601,532 | 664,414 | ||
Freddie Mac, 3.5%, 1/01/2047 | 343,030 | 365,763 | ||
Freddie Mac, UMBS, 3%, 6/01/2050 | 56,684 | 59,600 | ||
Freddie Mac, UMBS, 2.5%, 10/01/2051 - 12/01/2051 | 198,998 | 204,500 | ||
Ginnie Mae, 5%, 5/15/2040 | 47,718 | 54,656 | ||
Ginnie Mae, 3.5%, 6/20/2043 | 544,925 | 583,761 | ||
Ginnie Mae, 3%, 6/20/2051 | 93,916 | 97,284 | ||
Ginnie Mae, 2.5%, 8/20/2051 - 11/20/2051 | 668,279 | 685,209 | ||
Ginnie Mae, TBA, 3%, 7/20/2049 | 50,000 | 51,733 | ||
Ginnie Mae, TBA, 2%, 1/21/2052 | 400,000 | 403,611 | ||
Ginnie Mae, TBA, 2.5%, 1/21/2052 | 300,000 | 307,218 | ||
UMBS, TBA, 2%, 7/25/2051 | 1,500,000 | 1,495,378 | ||
UMBS, TBA, 2.5%, 7/25/2051 | 750,000 | 765,179 | ||
UMBS, TBA, 3%, 1/13/2052 | 1,525,000 | 1,579,844 | ||
$21,466,297 | ||||
Municipals – 0.4% | ||||
Massachusetts Educational Financing Authority, Education Loan Subordinate Rev., “A”, 2.641%, 7/01/2037 | $ | 695,000 | $ 699,033 | |
Michigan Finance Authority Hospital Rev. (Trinity Health Credit Group), 3.384%, 12/01/2040 | 480,000 | 522,580 | ||
Oklahoma Development Finance Authority, Health System Rev. (OU Medicine Project), “C”, 5.45%, 8/15/2028 | 275,000 | 307,772 | ||
State of Florida, “A”, 2.154%, 7/01/2030 | 650,000 | 648,466 | ||
$2,177,851 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Natural Gas - Distribution – 0.1% | ||||
National Grid PLC, 1.125%, 1/14/2033 | GBP | 487,000 | $ 585,028 | |
Natural Gas - Pipeline – 0.4% | ||||
APT Pipelines Ltd., 0.75%, 3/15/2029 | EUR | 540,000 | $ 599,306 | |
APT Pipelines Ltd., 1.25%, 3/15/2033 | 725,000 | 797,216 | ||
APT Pipelines Ltd., 2.5%, 3/15/2036 | GBP | 470,000 | 621,958 | |
$2,018,480 | ||||
Network & Telecom – 0.5% | ||||
AT&T, Inc., 3.5%, 9/15/2053 | $ | 229,000 | $ 231,037 | |
Iliad Holding S.A.S., 5.125%, 10/15/2026 | EUR | 350,000 | 415,908 | |
Lorca Telecom Bondco S.A.U., 4%, 9/18/2027 | 520,000 | 601,640 | ||
Verizon Communications, Inc., 2.1%, 3/22/2028 | $ | 291,000 | 291,555 | |
Verizon Communications, Inc., 2.55%, 3/21/2031 | 735,000 | 741,551 | ||
Verizon Communications, Inc., 4%, 3/22/2050 | 349,000 | 400,733 | ||
$2,682,424 | ||||
Oil Services – 0.1% | ||||
Halliburton Co., 5%, 11/15/2045 | $ | 365,000 | $ 436,073 | |
Oils – 0.4% | ||||
Neste Oyj, 0.75%, 3/25/2028 | EUR | 700,000 | $ 791,483 | |
PBF Holding Co. LLC/PBF Finance Corp., 7.25%, 6/15/2025 | $ | 575,000 | 409,687 | |
Puma International Financing S.A., 5%, 1/24/2026 | 475,000 | 475,000 | ||
Valero Energy Corp., 2.8%, 12/01/2031 | 347,000 | 345,917 | ||
$2,022,087 | ||||
Other Banks & Diversified Financials – 1.8% | ||||
Alpha Bank, 4.25%, 2/13/2030 | EUR | 590,000 | $ 649,602 | |
Bank Hapoalim B.M., 3.255% to 1/21/2027, FLR (CMT - 5yr. + 2.155%) to 1/21/2032 (n) | $ | 397,000 | 393,030 | |
Bank of Cyprus PCL, 2.5% to 6/24/2026, FLR (EUR Swap Rate - 5yr. + 2.785%) to 6/24/2027 | EUR | 670,000 | 728,469 | |
Banque Federative du Credit Mutuel S.A., 1.125%, 11/19/2031 | 400,000 | 446,743 | ||
Belfius Bank S.A., 1.25% to 4/06/2029, FLR (EUR Swap Rate - 5yr. + 1.3%) to 4/06/2034 | 400,000 | 446,897 | ||
BPCE S.A., 2.5% to 11/30/2027, FLR (GBP Swap Rate - 5yr. + 1.83%) to 11/30/2032 | GBP | 300,000 | 405,276 | |
Deutsche Bank AG, 1.875% to 12/22/2027, FLR (SONIA + 1.634%) to 12/22/2028 | 100,000 | 131,857 | ||
Deutsche Bank AG, 1.375% to 2/17/2031, FLR (EURIBOR - 3mo. + 1.5%) to 2/17/2032 | EUR | 200,000 | 227,086 | |
Groupe BPCE S.A., 4.5%, 3/15/2025 (n) | $ | 584,000 | 629,289 | |
Groupe des Assurances du Credit Mutuel, 1.85%, 4/21/2042 | EUR | 400,000 | 454,874 | |
Intesa Sanpaolo S.p.A., 2.625%, 3/11/2036 | GBP | 690,000 | 922,677 | |
Intesa Sanpaolo S.p.A., 4.125%, 2/27/2070 | EUR | 670,000 | 742,771 | |
Stichting AK Rabobank Certificaten, 6.5%, 3/29/2071 | 950,000 | 1,487,165 | ||
UBS AG, 5.125%, 5/15/2024 | $ | 866,000 | 926,620 | |
Virgin Money UK PLC, 5.125% to 12/11/2025, FLR (GBP Government Yield - 5yr. + 5.25%) to 12/11/2030 | GBP | 475,000 | 694,037 | |
$9,286,393 | ||||
Railroad & Shipping – 0.3% | ||||
Canadian Pacific Railway Co., 2.45%, 12/02/2031 | $ | 487,000 | $ 496,535 | |
Wabtec Transportation Netherlands B.V., 1.25%, 12/03/2027 | EUR | 705,000 | 809,847 | |
$1,306,382 | ||||
Real Estate - Office – 0.2% | ||||
Corporate Office Property LP, REIT, 2.25%, 3/15/2026 | $ | 356,000 | $ 360,039 | |
Corporate Office Property LP, REIT, 2%, 1/15/2029 | 237,000 | 227,859 | ||
Corporate Office Property LP, REIT, 2.75%, 4/15/2031 | 490,000 | 487,193 | ||
$1,075,091 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Real Estate - Other – 0.3% | ||||
EPR Properties, REIT, 3.6%, 11/15/2031 | $ | 405,000 | $ 400,684 | |
Lexington Realty Trust Co., 2.7%, 9/15/2030 | 466,000 | 461,577 | ||
W.P. Carey, Inc., REIT, 2.4%, 2/01/2031 | 681,000 | 669,167 | ||
$1,531,428 | ||||
Real Estate - Retail – 0.4% | ||||
Brixmor Operating Partnership LP, REIT, 4.05%, 7/01/2030 | $ | 610,000 | $ 665,622 | |
Hammerson Ireland Finance DAC, 1.75%, 6/03/2027 | EUR | 337,000 | 376,883 | |
Regency Centers Corp., 3.7%, 6/15/2030 | $ | 165,000 | 180,578 | |
STORE Capital Corp., REIT, 2.75%, 11/18/2030 | 786,000 | 779,462 | ||
$2,002,545 | ||||
Retailers – 0.5% | ||||
Home Depot, Inc., 3%, 4/01/2026 | $ | 525,000 | $ 557,773 | |
Home Depot, Inc., 4.875%, 2/15/2044 | 453,000 | 597,367 | ||
Kohl's Corp., 3.375%, 5/01/2031 | 539,000 | 548,930 | ||
MercadoLibre, Inc., 3.125%, 1/14/2031 | 683,000 | 645,442 | ||
Nordstrom, Inc., 4.25%, 8/01/2031 | 438,000 | 430,337 | ||
$2,779,849 | ||||
Supermarkets – 0.2% | ||||
Iceland Bondco PLC, 4.375%, 5/15/2028 | GBP | 610,000 | $ 720,400 | |
Loblaw Cos. Ltd., 4.86%, 9/12/2023 | CAD | 680,000 | 563,320 | |
$1,283,720 | ||||
Supranational – 2.3% | ||||
Corporacion Andina de Fomento, 1.625%, 9/23/2025 | $ | 530,000 | $ 529,085 | |
European Financial Stability Facility, 1.45%, 9/05/2040 | EUR | 738,000 | 977,600 | |
European Union, 0%, 10/04/2030 | 4,935,000 | 5,601,179 | ||
European Union, 0%, 7/04/2035 | 2,737,000 | 2,979,259 | ||
European Union, 0.75%, 1/04/2047 | 291,000 | 346,716 | ||
International Bank for Reconstruction and Development, 4.25%, 6/24/2025 | AUD | 465,000 | 370,758 | |
West African Development Bank, 4.7%, 10/22/2031 | $ | 900,000 | 979,344 | |
West African Development Bank, 2.75%, 1/22/2033 | EUR | 340,000 | 406,503 | |
$12,190,444 | ||||
Telecommunications - Wireless – 0.6% | ||||
American Tower Corp., REIT, 2.95%, 1/15/2051 | $ | 410,000 | $ 388,358 | |
Crown Castle International Corp., 1.35%, 7/15/2025 | 285,000 | 281,142 | ||
Crown Castle International Corp., 3.7%, 6/15/2026 | 345,000 | 369,736 | ||
Millicom International Cellular S.A., 4.5%, 4/27/2031 (n) | 400,000 | 403,004 | ||
Rogers Communications, Inc., 3.7%, 11/15/2049 | 316,000 | 331,676 | ||
Vodafone Group PLC, 3.25% to 9/04/2026, FLR (CMT - 5yr. + 2.447%) to 9/04/2031, FLR (CMT - 5yr. + 2.697%) to 9/04/2046, FLR (CMT - 5yr. + 3.447%) to 6/04/2081 | 1,223,000 | 1,199,127 | ||
$2,973,043 | ||||
Telephone Services – 0.2% | ||||
TELUS Corp., 2.85%, 11/13/2031 | CAD | 1,000,000 | $ 787,588 | |
Tobacco – 0.2% | ||||
British American Tobacco PLC, 3.75% to 9/27/2029, FLR (EUR Swap Rate - 5yr. + 3.952%) to 9/27/2034, FLR (EUR Swap Rate - 5yr. + 4.202%) to 9/27/2049, FLR (EUR Swap Rate - 5yr. + 4.952%) to 12/29/2149 | EUR | 410,000 | $ 456,399 | |
British American Tobacco PLC, 3% to 12/27/2026, FLR (EUR Swap Rate - 5yr. + 3.372%) to 12/27/2031, FLR (EUR Swap Rate - 5yr. + 3.622%) to 12/27/2046, FLR (EUR Swap Rate - 5yr. + 4.372%) to 9/27/2170 | 425,000 | 474,388 | ||
$930,787 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Transportation - Services – 0.3% | ||||
ERAC USA Finance LLC, 7%, 10/15/2037 (n) | $ | 494,000 | $ 727,768 | |
Promontoria Holding 264 B.V., 6.75%, 8/15/2023 | EUR | 590,000 | 669,505 | |
$1,397,273 | ||||
U.S. Government Agencies and Equivalents – 0.1% | ||||
Small Business Administration, 5.31%, 5/01/2027 | $ | 18,331 | $ 19,593 | |
Small Business Administration, 2.22%, 3/01/2033 | 641,059 | 649,419 | ||
$669,012 | ||||
U.S. Treasury Obligations – 1.7% | ||||
U.S. Treasury Bonds, 1.75%, 8/15/2041 | $ | 892,000 | $ 864,822 | |
U.S. Treasury Bonds, 2.375%, 11/15/2049 (f) | 334,000 | 366,904 | ||
U.S. Treasury Notes, 1.125%, 8/15/2040 (f) | 8,739,000 | 7,630,239 | ||
$8,861,965 | ||||
Utilities - Electric Power – 2.0% | ||||
Adani Green Energy (UP) Ltd./Prayatna Developers Private Ltd., 6.25%, 12/10/2024 (n) | $ | 731,000 | $ 793,135 | |
American Transmission Systems, Inc., 2.65%, 1/15/2032 (n) | 104,000 | 104,966 | ||
Bruce Power LP, 2.68%, 12/21/2028 | CAD | 915,000 | 734,546 | |
ContourGlobal Power Holdings S.A., 3.125%, 1/01/2028 | EUR | 375,000 | 418,847 | |
Enel Americas S.A., 4%, 10/25/2026 | $ | 1,891,000 | 2,013,915 | |
Enel Finance International N.V., 4.75%, 5/25/2047 (n) | 343,000 | 420,670 | ||
Enel S.p.A., 2.25% to 3/10/2027, FLR (EUR Swap Rate - 5yr. + 2.679%) to 3/10/2032, FLR (EUR Swap Rate - 5yr. + 2.929%) to 3/10/2047, FLR (EUR Swap Rate - 5yr. + 3.679%) to 3/10/2070 | EUR | 425,000 | 499,443 | |
Enel S.p.A., 1.875% to 9/08/2030, FLR (EUR Swap Rate - 5yr. + 2.011%) to 9/08/2035, FLR (EUR Swap Rate - 5yr. + 2.261%) to 9/08/2050, FLR (EUR Swap Rate - 5yr. + 3.011%) to 3/08/2170 | 525,000 | 579,034 | ||
ENGIE Energía Chile S.A., 4.5%, 1/29/2025 (n) | $ | 1,180,000 | 1,256,700 | |
Evergy, Inc., 2.9%, 9/15/2029 | 615,000 | 629,493 | ||
Iberdrola Finanzas, S.A.U., 1.575% to 11/16/2027, FLR (EUR Swap Rate - 5yr. + 1.676%) to 11/16/2032, FLR (EUR Swap Rate - 5yr. + 1.926%) to 11/16/2047, FLR (EUR Swap Rate - 5yr. + 2.676%) to 11/16/2170 | EUR | 300,000 | 339,842 | |
Jersey Central Power & Light Co., 2.75%, 3/01/2032 (n) | $ | 427,000 | 432,722 | |
NextEra Energy, Inc., 4.5%, 9/15/2027 (n) | 300,000 | 324,000 | ||
Pacific Gas & Electric Co., 4.95%, 7/01/2050 | 384,000 | 418,198 | ||
Southern California Edison Co., 3.65%, 2/01/2050 | 252,000 | 266,651 | ||
Virginia Electric & Power Co., 3.5%, 3/15/2027 | 1,005,000 | 1,082,647 | ||
Virginia Electric & Power Co., 2.875%, 7/15/2029 | 217,000 | 227,582 | ||
$10,542,391 | ||||
Total Bonds (Identified Cost, $322,978,557) | $321,098,050 | |||
Common Stocks – 35.6% | ||||
Aerospace & Defense – 0.9% | ||||
Honeywell International, Inc. (f) | 8,761 | $ 1,826,756 | ||
L3Harris Technologies, Inc. | 4,027 | 858,717 | ||
Lockheed Martin Corp. (f) | 3,476 | 1,235,405 | ||
Northrop Grumman Corp. | 2,207 | 854,264 | ||
$4,775,142 | ||||
Alcoholic Beverages – 0.8% | ||||
Diageo PLC | 30,440 | $ 1,662,915 | ||
Heineken N.V. | 8,522 | 959,169 | ||
Kirin Holdings Co. Ltd. | 15,100 | 242,456 | ||
Pernod Ricard S.A. | 5,698 | 1,372,037 | ||
$4,236,577 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Apparel Manufacturers – 0.5% | ||||
Adidas AG | 2,844 | $ 819,834 | ||
Compagnie Financiere Richemont S.A. | 12,010 | 1,793,371 | ||
$2,613,205 | ||||
Automotive – 0.9% | ||||
Aptiv PLC (a) | 5,388 | $ 888,750 | ||
Ford Otomotiv Sanayi A.S. | 9,643 | 173,558 | ||
Lear Corp. | 6,666 | 1,219,545 | ||
LKQ Corp. | 22,258 | 1,336,148 | ||
Magna International, Inc. | 11,879 | 961,157 | ||
$4,579,158 | ||||
Biotechnology – 0.1% | ||||
Biogen, Inc. (a) | 948 | $ 227,444 | ||
Gilead Sciences, Inc. | 2,213 | 160,686 | ||
$388,130 | ||||
Brokerage & Asset Managers – 0.8% | ||||
Cboe Global Markets, Inc. | 7,533 | $ 982,303 | ||
Charles Schwab Corp. (f) | 26,198 | 2,203,252 | ||
NASDAQ, Inc. | 3,757 | 789,008 | ||
$3,974,563 | ||||
Business Services – 1.6% | ||||
Accenture PLC, “A” (s) | 4,871 | $ 2,019,273 | ||
Amdocs Ltd. | 10,363 | 775,567 | ||
CGI, Inc. (a) | 12,346 | 1,091,664 | ||
Equifax, Inc. | 1,812 | 530,536 | ||
Experian PLC | 15,597 | 766,763 | ||
Fidelity National Information Services, Inc. | 8,867 | 967,833 | ||
Fiserv, Inc. (a)(f) | 9,095 | 943,970 | ||
Nomura Research Institute Ltd. | 6,200 | 265,991 | ||
Secom Co. Ltd. | 12,500 | 867,817 | ||
$8,229,414 | ||||
Cable TV – 0.5% | ||||
Comcast Corp., “A” (f) | 52,775 | $ 2,656,166 | ||
Chemicals – 0.4% | ||||
PPG Industries, Inc. | 11,346 | $ 1,956,504 | ||
Computer Software – 0.4% | ||||
Adobe Systems, Inc. (a) | 348 | $ 197,337 | ||
Microsoft Corp. | 5,260 | 1,769,043 | ||
$1,966,380 | ||||
Computer Software - Systems – 1.3% | ||||
Amadeus IT Group S.A. (a) | 15,343 | $ 1,033,421 | ||
Asustek Computer, Inc. | 13,000 | 176,673 | ||
Compal Electronics | 162,000 | 141,700 | ||
Fujitsu Ltd. | 7,400 | 1,269,251 | ||
Hitachi Ltd. | 27,500 | 1,489,394 | ||
Hon Hai Precision Industry Co. Ltd. | 179,000 | 672,859 | ||
Lenovo Group Ltd. | 224,000 | 257,394 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Computer Software - Systems – continued | ||||
Samsung Electronics Co. Ltd. | 29,871 | $ 1,967,528 | ||
$7,008,220 | ||||
Construction – 0.7% | ||||
Masco Corp. | 19,994 | $ 1,403,979 | ||
Stanley Black & Decker, Inc. | 5,962 | 1,124,553 | ||
Vulcan Materials Co. | 5,630 | 1,168,675 | ||
$3,697,207 | ||||
Consumer Products – 1.1% | ||||
Colgate-Palmolive Co. (f) | 30,676 | $ 2,617,890 | ||
Kimberly-Clark Corp. (f) | 12,340 | 1,763,633 | ||
Reckitt Benckiser Group PLC | 18,014 | 1,546,360 | ||
$5,927,883 | ||||
Electrical Equipment – 1.2% | ||||
Johnson Controls International PLC | 23,133 | $ 1,880,944 | ||
Legrand S.A. | 8,141 | 953,732 | ||
Schneider Electric SE | 17,498 | 3,435,656 | ||
$6,270,332 | ||||
Electronics – 1.9% | ||||
Intel Corp. | 33,026 | $ 1,700,839 | ||
Kyocera Corp. | 11,200 | 699,769 | ||
NXP Semiconductors N.V. | 5,648 | 1,286,501 | ||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 21,730 | 2,614,336 | ||
Texas Instruments, Inc. (f) | 18,063 | 3,404,334 | ||
$9,705,779 | ||||
Energy - Independent – 0.4% | ||||
ConocoPhillips | 20,681 | $ 1,492,754 | ||
Hess Corp. | 8,990 | 665,530 | ||
$2,158,284 | ||||
Energy - Integrated – 0.5% | ||||
China Petroleum & Chemical Corp. | 2,946,000 | $ 1,371,454 | ||
Eni S.p.A. | 58,262 | 805,393 | ||
LUKOIL PJSC, ADR | 1,455 | 130,222 | ||
Suncor Energy, Inc. | 8,138 | 203,619 | ||
$2,510,688 | ||||
Food & Beverages – 1.6% | ||||
Archer Daniels Midland Co. | 6,240 | $ 421,762 | ||
Coca-Cola FEMSA S.A.B. de C.V. | 3,501 | 191,820 | ||
Danone S.A. | 20,548 | 1,277,072 | ||
General Mills, Inc. (f) | 27,858 | 1,877,072 | ||
J.M. Smucker Co. | 13,246 | 1,799,072 | ||
JBS S.A. | 28,064 | 191,208 | ||
Nestle S.A. | 18,341 | 2,565,163 | ||
$8,323,169 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Food & Drug Stores – 0.4% | ||||
Albertsons Cos., Inc., “A” | 13,647 | $ 412,003 | ||
Tesco PLC | 441,441 | 1,732,189 | ||
$2,144,192 | ||||
Gaming & Lodging – 0.1% | ||||
International Game Technology PLC | 12,653 | $ 365,798 | ||
Tabcorp Holdings Ltd. | 34,223 | 124,993 | ||
$490,791 | ||||
General Merchandise – 0.0% | ||||
Bim Birlesik Magazalar A.S. | 46,218 | $ 214,163 | ||
Health Maintenance Organizations – 0.3% | ||||
Cigna Corp. | 7,617 | $ 1,749,092 | ||
Insurance – 2.3% | ||||
Aon PLC (s) | 9,639 | $ 2,897,098 | ||
China Pacific Insurance Co. Ltd. | 53,800 | 145,927 | ||
Chubb Ltd. | 10,440 | 2,018,156 | ||
Equitable Holdings, Inc. | 18,401 | 603,369 | ||
Everest Re Group Ltd. | 1,128 | 308,982 | ||
Hartford Financial Services Group, Inc. | 7,670 | 529,537 | ||
Manulife Financial Corp. | 84,966 | 1,619,455 | ||
MetLife, Inc. | 9,777 | 610,965 | ||
Samsung Fire & Marine Insurance Co. Ltd. (a) | 3,414 | 580,129 | ||
Travelers Cos., Inc. | 8,001 | 1,251,596 | ||
Willis Towers Watson PLC | 6,215 | 1,476,000 | ||
$12,041,214 | ||||
Internet – 0.0% | ||||
Gartner, Inc. (a) | 599 | $ 200,258 | ||
Leisure & Toys – 0.2% | ||||
Brunswick Corp. | 4,116 | $ 414,605 | ||
DeNA Co. Ltd. | 7,000 | 107,772 | ||
Nintendo Co. Ltd. | 500 | 233,200 | ||
Polaris, Inc. | 952 | 104,634 | ||
$860,211 | ||||
Machinery & Tools – 1.5% | ||||
Eaton Corp. PLC | 21,486 | $ 3,713,210 | ||
GEA Group AG | 3,048 | 166,879 | ||
Ingersoll Rand, Inc. | 31,296 | 1,936,284 | ||
Kubota Corp. | 51,300 | 1,138,786 | ||
PACCAR, Inc. | 4,595 | 405,555 | ||
Regal Rexnord Corp. | 3,790 | 644,982 | ||
$8,005,696 | ||||
Major Banks – 3.6% | ||||
Bank of America Corp. (s) | 53,064 | $ 2,360,817 | ||
BNP Paribas | 28,934 | 2,001,846 | ||
China Construction Bank Corp. | 738,000 | 511,084 | ||
DBS Group Holdings Ltd. | 74,300 | 1,800,711 | ||
Erste Group Bank AG | 8,740 | 410,856 | ||
Goldman Sachs Group, Inc. (f) | 6,047 | 2,313,280 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Major Banks – continued | ||||
JPMorgan Chase & Co. (f) | 18,115 | $ 2,868,510 | ||
Mitsubishi UFJ Financial Group, Inc. | 202,500 | 1,100,080 | ||
NatWest Group PLC | 531,746 | 1,624,464 | ||
UBS Group AG | 209,452 | 3,759,264 | ||
$18,750,912 | ||||
Medical & Health Technology & Services – 0.4% | ||||
McKesson Corp. | 4,878 | $ 1,212,524 | ||
Quest Diagnostics, Inc. | 3,121 | 539,964 | ||
Sonic Healthcare Ltd. | 5,346 | 181,367 | ||
$1,933,855 | ||||
Medical Equipment – 1.0% | ||||
Becton, Dickinson and Co. | 4,855 | $ 1,220,935 | ||
Boston Scientific Corp. (a)(s) | 26,343 | 1,119,051 | ||
Danaher Corp. | 1,833 | 603,075 | ||
Medtronic PLC | 14,743 | 1,525,163 | ||
Thermo Fisher Scientific, Inc. | 1,556 | 1,038,226 | ||
$5,506,450 | ||||
Metals & Mining – 0.8% | ||||
Fortescue Metals Group Ltd. | 34,424 | $ 481,118 | ||
Glencore PLC | 47,731 | 242,241 | ||
POSCO | 1,190 | 274,789 | ||
Rio Tinto PLC | 39,562 | 2,619,624 | ||
Vale S.A. | 33,500 | 468,880 | ||
$4,086,652 | ||||
Natural Gas - Distribution – 0.0% | ||||
UGI Corp. | 4,781 | $ 219,496 | ||
Natural Gas - Pipeline – 0.1% | ||||
Equitrans Midstream Corp. | 28,542 | $ 295,124 | ||
Pembina Pipeline Corp. (l) | 8,882 | 269,420 | ||
$564,544 | ||||
Other Banks & Diversified Financials – 0.9% | ||||
Hana Financial Group, Inc. | 4,776 | $ 168,943 | ||
KBC Group N.V. | 11,163 | 959,027 | ||
Sberbank of Russia PJSC, ADR | 35,343 | 567,255 | ||
SLM Corp. | 26,251 | 516,357 | ||
Tisco Financial Group PCL | 137,400 | 394,863 | ||
Truist Financial Corp. | 32,850 | 1,923,367 | ||
$4,529,812 | ||||
Pharmaceuticals – 3.6% | ||||
Bayer AG | 28,058 | $ 1,501,369 | ||
Johnson & Johnson (f) | 32,914 | 5,630,598 | ||
Merck & Co., Inc. (f) | 44,535 | 3,413,163 | ||
Novartis AG | 12,693 | 1,114,652 | ||
Novo Nordisk A.S., “B” | 8,434 | 942,877 | ||
Organon & Co. | 14,674 | 446,823 | ||
Roche Holding AG | 13,367 | 5,541,094 | ||
$18,590,576 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Printing & Publishing – 0.5% | ||||
RELX PLC | 25,405 | $ 824,900 | ||
Transcontinental, Inc., “A” | 5,714 | 91,744 | ||
Wolters Kluwer N.V. | 14,718 | 1,735,967 | ||
$2,652,611 | ||||
Railroad & Shipping – 0.5% | ||||
Canadian Pacific Railway Ltd. | 18,480 | $ 1,329,152 | ||
Union Pacific Corp. | 5,363 | 1,351,100 | ||
$2,680,252 | ||||
Real Estate – 0.1% | ||||
Extra Space Storage, Inc., REIT | 1,908 | $ 432,601 | ||
National Storage Affiliates Trust, REIT | 2,273 | 157,291 | ||
$589,892 | ||||
Restaurants – 0.1% | ||||
Yum China Holdings, Inc. | 14,469 | $ 721,135 | ||
Specialty Chemicals – 0.3% | ||||
Akzo Nobel N.V. | 8,572 | $ 941,765 | ||
Axalta Coating Systems Ltd. (a) | 20,600 | 682,272 | ||
$1,624,037 | ||||
Specialty Stores – 0.2% | ||||
Home Depot, Inc. | 2,627 | $ 1,090,231 | ||
Telecommunications - Wireless – 1.2% | ||||
KDDI Corp. | 118,100 | $ 3,451,728 | ||
T-Mobile US, Inc. (a) | 11,134 | 1,291,321 | ||
Turkcell Iletisim Hizmetleri A.S. | 98,299 | 137,168 | ||
Vodafone Group PLC | 759,559 | 1,154,146 | ||
$6,034,363 | ||||
Telephone Services – 0.2% | ||||
Hellenic Telecommunications Organization S.A. | 27,310 | $ 505,407 | ||
PT Telekom Indonesia | 903,500 | 256,105 | ||
Quebecor, Inc., “B” | 22,230 | 501,733 | ||
$1,263,245 | ||||
Tobacco – 0.7% | ||||
British American Tobacco PLC | 31,652 | $ 1,171,101 | ||
Imperial Tobacco Group PLC | 25,374 | 555,187 | ||
Japan Tobacco, Inc. (l) | 29,400 | 593,597 | ||
Philip Morris International, Inc. (s) | 13,124 | 1,246,780 | ||
$3,566,665 | ||||
Utilities - Electric Power – 1.0% | ||||
American Electric Power Co., Inc. | 2,843 | $ 252,942 | ||
CLP Holdings Ltd. | 45,000 | 454,470 | ||
Duke Energy Corp. | 11,284 | 1,183,691 | ||
E.ON SE | 117,326 | 1,628,554 | ||
ENGIE Energía Brasil S.A. | 17,600 | 121,367 | ||
Exelon Corp. | 15,042 | 868,826 | ||
Iberdrola S.A. | 31,625 | 370,597 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Utilities - Electric Power – continued | ||||
Terna Participacoes S.A., IEU | 60,517 | $ 395,153 | ||
$5,275,600 | ||||
Total Common Stocks (Identified Cost, $114,402,066) | $186,362,746 | |||
Preferred Stocks – 0.3% | ||||
Computer Software - Systems – 0.1% | ||||
Samsung Electronics Co. Ltd. | 8,484 | $ 508,148 | ||
Consumer Products – 0.2% | ||||
Henkel AG & Co. KGaA | 14,136 | $ 1,144,915 | ||
Total Preferred Stocks (Identified Cost, $1,195,176) | $ 1,653,063 | |||
Convertible Preferred Stocks – 0.1% | ||||
Medical Equipment – 0.1% | ||||
Boston Scientific Corp., 5.5% | 2,435 | $ 279,197 | ||
Danaher Corp., 4.75% | 101 | 221,594 | ||
Total Convertible Preferred Stocks (Identified Cost, $364,211) | $ 500,791 | |||
Investment Companies (h) – 2.5% | ||||
Money Market Funds – 2.5% | ||||
MFS Institutional Money Market Portfolio, 0.07% (v) (Identified Cost, $12,950,052) | 12,950,052 | $ 12,950,052 |
Underlying/Expiration Date/Exercise Price | Put/Call | Counterparty | Notional Amount | Par Amount/ Number of Contracts | |
Purchased Options – 0.2% | |||||
Market Index Securities – 0.0% | |||||
S&P 500 Index – January 2022 @ $4,450 | Put | Merrill Lynch International | $ 7,149,270 | 15 | $ 14,175 |
Other – 0.2% | |||||
U.S. Treasury 10 yr - Interest Rate Swap - Fund pays 1.75%, Fund receives FLR (3-month LIBOR) – September 2022 | Put | Merrill Lynch International | $ 39,000,000 | $ 39,000,000 | $ 842,604 |
Total Purchased Options (Premiums Paid, $437,296) | $ 856,779 | ||||
Other Assets, Less Liabilities – (0.1)% | (678,253) | ||||
Net Assets – 100.0% | $522,743,228 |
(a) | Non-income producing security. |
(f) | All or a portion of the security has been segregated as collateral for open futures contracts and cleared swap agreements. |
(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 $12,950,052 and $510,471,429, respectively. |
(i) | Interest only security for which the fund receives interest on notional principal (Par amount). Par amount shown is the notional principal and does not reflect the cost of the security. |
(l) | A portion of this security is on loan. See Note 2 for additional information. |
(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 $51,223,873, representing 9.8% of net assets. |
(s) | Security or a portion of the security was pledged to cover collateral requirements for certain derivative transactions. |
(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. |
(z) | Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. The fund holds the following restricted securities: |
Restricted Securities | Acquisition Date | Cost | Value |
Acres PLC, 2021-FL2, “AS”, FLR, 1.84% (LIBOR - 1mo. + 1.75%), 1/15/2037 | 12/07/2021 | $370,000 | $370,002 |
Acres PLC, 2021-FL2, “B”, FLR, 2.352% (LIBOR - 1mo. + 2.25%), 1/15/2037 | 12/07/2021 | 604,000 | 604,003 |
MF1 CLO Ltd., 2020-FL3, “AS”, FLR, 3.014% (LIBOR - 1mo. + 2.85%), 7/15/2035 | 6/12/2020 | 357,000 | 361,550 |
Total Restricted Securities | $1,335,555 | ||
% of Net assets | 0.3% |
The following abbreviations are used in this report and are defined: | |
ADR | American Depositary Receipt |
AGM | Assured Guaranty Municipal |
CLO | Collateralized Loan Obligation |
CMT | Constant Maturity Treasury |
EURIBOR | Euro Interbank Offered Rate |
FLR | Floating Rate. Interest rate resets periodically based on the parenthetically disclosed reference rate plus a spread (if any). The period-end rate reported may not be the current rate. All reference rates are USD unless otherwise noted. |
ICE | Intercontinental Exchange |
IEU | International Equity Unit |
LIBOR | London Interbank Offered Rate |
PCL | Public Company Limited |
REIT | Real Estate Investment Trust |
SOFR | Secured Overnight Financing Rate |
SONIA | Sterling Overnight Index Average |
TBA | To Be Announced |
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: | |
AUD | Australian Dollar |
BRL | Brazilian Real |
CAD | Canadian Dollar |
CHF | Swiss Franc |
CLP | Chilean Peso |
CNH | Chinese Yuan Renminbi (Offshore) |
CNY | China Yuan Renminbi |
COP | Colombian Peso |
CZK | Czech Koruna |
DKK | Danish Krone |
EUR | Euro |
GBP | British Pound |
HKD | Hong Kong Dollar |
HUF | Hungarian Forint |
IDR | Indonesian Rupiah |
ILS | Israeli Shekel |
JPY | Japanese Yen |
KRW | South Korean Won |
MXN | Mexican Peso |
NOK | Norwegian Krone |
NZD | New Zealand Dollar |
PLN | Polish Zloty |
RUB | Russian Ruble |
SEK | Swedish Krona |
SGD | Singapore Dollar |
THB | Thai Baht |
TRY | Turkish Lira |
TWD | Taiwan Dollar |
UYU | Uruguayan Peso |
ZAR | South African Rand |
Derivative Contracts at 12/31/21 | ||||||
Forward Foreign Currency Exchange Contracts | ||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||
Asset Derivatives | ||||||
AUD | 4,620,000 | USD | 3,325,682 | Deutsche Bank AG | 1/14/2022 | $ 35,684 |
AUD | 2,323,000 | USD | 1,662,152 | Goldman Sachs International | 1/14/2022 | 27,989 |
AUD | 2,350,000 | USD | 1,688,051 | JPMorgan Chase Bank N.A. | 1/14/2022 | 21,735 |
AUD | 832,272 | USD | 595,268 | JPMorgan Chase Bank N.A. | 3/16/2022 | 10,356 |
AUD | 1,924,984 | USD | 1,399,029 | UBS AG | 1/14/2022 | 1,529 |
CAD | 2,050,000 | USD | 1,617,530 | Merrill Lynch International | 1/14/2022 | 3,075 |
CHF | 637,653 | USD | 691,000 | JPMorgan Chase Bank N.A. | 3/11/2022 | 9,996 |
CHF | 1,782,000 | USD | 1,931,035 | JPMorgan Chase Bank N.A. | 3/16/2022 | 28,268 |
CNH | 5,500,000 | USD | 853,993 | Goldman Sachs International | 1/14/2022 | 10,737 |
CNH | 4,500,000 | USD | 694,304 | HSBC Bank | 1/14/2022 | 13,203 |
CNH | 21,582,000 | USD | 3,362,823 | JPMorgan Chase Bank N.A. | 1/14/2022 | 30,377 |
CNH | 13,099,000 | USD | 2,040,406 | JPMorgan Chase Bank N.A. | 3/16/2022 | 10,842 |
CNY | 2,190,993 | USD | 341,000 | JPMorgan Chase Bank N.A. | 3/11/2022 | 1,079 |
CZK | 8,239,000 | USD | 372,098 | Citibank N.A. | 1/14/2022 | 4,627 |
CZK | 64,545,000 | USD | 2,874,633 | JPMorgan Chase Bank N.A. | 1/14/2022 | 76,663 |
CZK | 10,305,000 | USD | 465,533 | UBS AG | 1/14/2022 | 5,660 |
DKK | 4,719,079 | USD | 718,040 | JPMorgan Chase Bank N.A. | 3/16/2022 | 5,495 |
EUR | 160,561 | USD | 181,959 | Deutsche Bank AG | 1/14/2022 | 876 |
EUR | 6,845,235 | USD | 7,756,455 | Goldman Sachs International | 1/14/2022 | 38,377 |
EUR | 1,011,064 | USD | 1,141,085 | HSBC Bank | 1/14/2022 | 10,237 |
EUR | 1,553,369 | USD | 1,757,000 | JPMorgan Chase Bank N.A. | 3/11/2022 | 13,897 |
EUR | 1,143,788 | USD | 1,292,355 | UBS AG | 1/14/2022 | 10,104 |
GBP | 3,652,992 | USD | 4,888,511 | Deutsche Bank AG | 1/14/2022 | 55,900 |
GBP | 564,301 | USD | 747,241 | HSBC Bank | 1/14/2022 | 16,553 |
GBP | 2,488,432 | USD | 3,289,207 | JPMorgan Chase Bank N.A. | 3/16/2022 | 77,987 |
IDR | 16,199,936,460 | USD | 1,125,777 | Citibank N.A. | 2/22/2022 | 6,353 |
IDR | 3,000,000,000 | USD | 209,205 | JPMorgan Chase Bank N.A. | 1/28/2022 | 918 |
JPY | 25,000,000 | USD | 216,851 | Morgan Stanley Capital Services, Inc. | 1/14/2022 | 497 |
MXN | 52,185,808 | USD | 2,445,413 | JPMorgan Chase Bank N.A. | 3/16/2022 | 71,338 |
NOK | 187,226,109 | USD | 20,708,676 | Goldman Sachs International | 3/11/2022 | 525,080 |
NOK | 21,571,603 | USD | 2,394,817 | JPMorgan Chase Bank N.A. | 1/14/2022 | 54,219 |
NOK | 48,815,574 | USD | 5,422,327 | JPMorgan Chase Bank N.A. | 3/16/2022 | 113,418 |
NZD | 852,001 | USD | 577,426 | JPMorgan Chase Bank N.A. | 3/16/2022 | 5,474 |
PLN | 5,954,931 | USD | 1,448,183 | JPMorgan Chase Bank N.A. | 3/16/2022 | 21,877 |
SEK | 28,500,000 | USD | 3,151,985 | Deutsche Bank AG | 1/14/2022 | 2,249 |
SEK | 136,875,807 | USD | 15,045,266 | Goldman Sachs International | 3/11/2022 | 110,345 |
SGD | 972,000 | USD | 711,664 | JPMorgan Chase Bank N.A. | 3/16/2022 | 9,348 |
TRY | 274,000 | USD | 18,710 | JPMorgan Chase Bank N.A. | 3/16/2022 | 754 |
USD | 293,914 | AUD | 403,734 | Citibank N.A. | 1/14/2022 | 170 |
USD | 1,966,314 | AUD | 2,631,865 | Deutsche Bank AG | 1/14/2022 | 51,453 |
USD | 1,769,396 | CAD | 2,213,257 | Deutsche Bank AG | 1/14/2022 | 19,730 |
USD | 1,695,622 | CAD | 2,100,000 | Goldman Sachs International | 1/14/2022 | 35,490 |
USD | 5,316,538 | CAD | 6,583,397 | HSBC Bank | 1/14/2022 | 112,104 |
USD | 289,757 | COP | 1,149,784,960 | JPMorgan Chase Bank N.A. | 3/11/2022 | 9,068 |
Forward Foreign Currency Exchange Contracts - continued | ||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||
Asset Derivatives - continued | ||||||
USD | 11,677,048 | EUR | 10,058,610 | Deutsche Bank AG | 1/14/2022 | $ 223,071 |
USD | 2,874,559 | EUR | 2,478,429 | Goldman Sachs International | 1/14/2022 | 52,313 |
USD | 1,521,652 | EUR | 1,313,008 | HSBC Bank | 1/14/2022 | 26,499 |
USD | 1,066,059 | EUR | 921,618 | JPMorgan Chase Bank N.A. | 1/14/2022 | 16,590 |
USD | 1,736,451 | EUR | 1,495,709 | Morgan Stanley Capital Services, Inc. | 1/14/2022 | 33,251 |
USD | 1,236,677 | EUR | 1,057,000 | NatWest Markets PLC | 1/14/2022 | 33,047 |
USD | 5,009,683 | EUR | 4,316,211 | UBS AG | 1/14/2022 | 94,712 |
USD | 4,920,736 | GBP | 3,610,522 | Deutsche Bank AG | 1/14/2022 | 33,808 |
USD | 586,553 | GBP | 425,000 | HSBC Bank | 1/14/2022 | 11,306 |
USD | 1,674,246 | HUF | 537,973,000 | Goldman Sachs International | 1/14/2022 | 17,832 |
USD | 1,843,307 | JPY | 210,000,000 | Barclays Bank PLC | 1/14/2022 | 17,583 |
USD | 884,084 | JPY | 101,027,653 | Deutsche Bank AG | 1/14/2022 | 5,757 |
USD | 1,524,944 | JPY | 173,504,448 | Goldman Sachs International | 1/14/2022 | 16,510 |
USD | 956,008 | JPY | 109,112,072 | JPMorgan Chase Bank N.A. | 1/14/2022 | 7,396 |
USD | 34,978,426 | JPY | 3,968,956,490 | JPMorgan Chase Bank N.A. | 3/11/2022 | 457,352 |
USD | 3,001,087 | JPY | 338,767,365 | UBS AG | 1/14/2022 | 55,869 |
USD | 683,214 | KRW | 805,816,610 | Barclays Bank PLC | 2/11/2022 | 5,922 |
USD | 372,767 | KRW | 437,994,000 | BNP Paribas S.A. | 2/11/2022 | 4,632 |
USD | 3,319,015 | KRW | 3,902,332,070 | Goldman Sachs International | 1/24/2022 | 37,820 |
USD | 4,528,705 | KRW | 5,368,708,184 | Goldman Sachs International | 2/16/2022 | 16,725 |
USD | 2,150,400 | KRW | 2,536,934,400 | JPMorgan Chase Bank N.A. | 2/11/2022 | 18,097 |
USD | 153,594 | NOK | 1,300,000 | Goldman Sachs International | 1/14/2022 | 6,004 |
USD | 5,192,499 | NOK | 44,500,000 | JPMorgan Chase Bank N.A. | 1/14/2022 | 140,390 |
USD | 1,670,738 | NZD | 2,350,000 | Citibank N.A. | 1/14/2022 | 61,361 |
USD | 3,296,271 | NZD | 4,800,000 | Goldman Sachs International | 1/14/2022 | 9,033 |
USD | 886,057 | PLN | 3,500,000 | JPMorgan Chase Bank N.A. | 1/14/2022 | 17,901 |
USD | 496,248 | RUB | 37,544,092 | JPMorgan Chase Bank N.A. | 3/11/2022 | 2,916 |
USD | 3,343,483 | SEK | 28,995,000 | JPMorgan Chase Bank N.A. | 1/14/2022 | 134,464 |
USD | 32,371 | TWD | 894,000 | JPMorgan Chase Bank N.A. | 2/18/2022 | 59 |
USD | 355,885 | ZAR | 5,455,963 | Brown Brothers Harriman | 1/14/2022 | 13,968 |
$ 3,243,319 | ||||||
Liability Derivatives | ||||||
AUD | 5,292,553 | USD | 3,919,811 | Deutsche Bank AG | 1/14/2022 | $ (69,117) |
AUD | 1,734,875 | USD | 1,281,550 | UBS AG | 1/14/2022 | (19,311) |
CAD | 5,209,269 | USD | 4,215,631 | Deutsche Bank AG | 1/14/2022 | (97,499) |
CAD | 2,391,685 | USD | 1,938,146 | HSBC Bank | 1/14/2022 | (47,426) |
CAD | 494,950 | USD | 391,365 | JPMorgan Chase Bank N.A. | 3/11/2022 | (133) |
CAD | 2,713,329 | USD | 2,145,094 | JPMorgan Chase Bank N.A. | 3/16/2022 | (400) |
CAD | 501,000 | USD | 403,479 | State Street Bank Corp. | 1/14/2022 | (7,419) |
CAD | 820,000 | USD | 663,398 | UBS AG | 1/14/2022 | (15,156) |
CLP | 134,879,000 | USD | 164,647 | Goldman Sachs International | 2/18/2022 | (7,388) |
COP | 1,321,303,000 | USD | 331,866 | Goldman Sachs International | 3/11/2022 | (9,306) |
EUR | 280,000 | USD | 324,563 | Citibank N.A. | 1/14/2022 | (5,720) |
EUR | 1,300,000 | USD | 1,480,577 | Credit Suisse Group | 1/14/2022 | (236) |
EUR | 7,422,908 | USD | 8,527,130 | Deutsche Bank AG | 1/14/2022 | (74,490) |
EUR | 3,250,519 | USD | 3,778,405 | HSBC Bank | 1/14/2022 | (76,962) |
EUR | 6,020,798 | USD | 6,998,495 | JPMorgan Chase Bank N.A. | 1/14/2022 | (142,469) |
EUR | 2,900,000 | USD | 3,395,295 | Merrill Lynch International | 1/14/2022 | (92,997) |
EUR | 595,826 | USD | 690,197 | Morgan Stanley Capital Services, Inc. | 1/14/2022 | (11,715) |
EUR | 1,249,340 | USD | 1,446,348 | UBS AG | 1/14/2022 | (23,694) |
GBP | 56,513 | USD | 78,121 | Brown Brothers Harriman | 1/14/2022 | (1,628) |
GBP | 2,139,308 | USD | 2,928,933 | Deutsche Bank AG | 1/14/2022 | (33,328) |
Forward Foreign Currency Exchange Contracts - continued | ||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||
Liability Derivatives - continued | ||||||
GBP | 257,538 | USD | 352,640 | HSBC Bank | 1/14/2022 | $ (4,056) |
GBP | 475,000 | USD | 648,683 | JPMorgan Chase Bank N.A. | 1/14/2022 | (5,760) |
HUF | 122,993,000 | USD | 395,820 | Goldman Sachs International | 1/14/2022 | (17,126) |
HUF | 351,206,000 | USD | 1,075,999 | JPMorgan Chase Bank N.A. | 3/16/2022 | (1,377) |
HUF | 138,660,000 | USD | 446,313 | UBS AG | 1/14/2022 | (19,380) |
ILS | 1,799,000 | USD | 580,803 | JPMorgan Chase Bank N.A. | 3/16/2022 | (1,804) |
JPY | 181,345,341 | USD | 1,594,259 | Brown Brothers Harriman | 1/14/2022 | (17,656) |
JPY | 167,730,248 | USD | 1,472,741 | Deutsche Bank AG | 1/14/2022 | (14,508) |
JPY | 191,000,000 | USD | 1,686,212 | Goldman Sachs International | 1/14/2022 | (25,673) |
JPY | 136,468,345 | USD | 1,206,799 | HSBC Bank | 1/14/2022 | (20,354) |
JPY | 3,027,675,272 | USD | 26,659,886 | JPMorgan Chase Bank N.A. | 3/16/2022 | (324,125) |
JPY | 35,000,000 | USD | 307,862 | NatWest Markets PLC | 1/14/2022 | (3,575) |
NZD | 2,400,000 | USD | 1,684,813 | Goldman Sachs International | 1/14/2022 | (41,194) |
RUB | 43,746,000 | USD | 599,482 | Citibank N.A. | 4/25/2022 | (30,806) |
SEK | 44,867,000 | USD | 5,074,916 | Goldman Sachs International | 1/14/2022 | (109,265) |
SEK | 1,400,000 | USD | 163,636 | JPMorgan Chase Bank N.A. | 1/14/2022 | (8,691) |
THB | 55,300,000 | USD | 1,689,220 | JPMorgan Chase Bank N.A. | 2/18/2022 | (29,280) |
THB | 88,169,000 | USD | 2,693,581 | JPMorgan Chase Bank N.A. | 3/17/2022 | (54,930) |
USD | 174,107 | AUD | 245,030 | Deutsche Bank AG | 1/14/2022 | (4,168) |
USD | 10,291,620 | AUD | 14,555,070 | JPMorgan Chase Bank N.A. | 3/11/2022 | (299,546) |
USD | 4,090,852 | AUD | 5,719,608 | JPMorgan Chase Bank N.A. | 3/16/2022 | (71,169) |
USD | 477,657 | AUD | 670,685 | UBS AG | 1/14/2022 | (10,313) |
USD | 3,781,762 | BRL | 21,584,409 | Merrill Lynch International | 3/03/2022 | (39,953) |
USD | 2,127,261 | CAD | 2,725,695 | HSBC Bank | 1/14/2022 | (27,508) |
USD | 267,506 | CHF | 244,000 | Deutsche Bank AG | 1/14/2022 | (341) |
USD | 24,045,360 | CHF | 22,206,275 | JPMorgan Chase Bank N.A. | 3/11/2022 | (366,837) |
USD | 2,737,535 | CNH | 17,567,000 | JPMorgan Chase Bank N.A. | 3/16/2022 | (13,382) |
USD | 21,073,546 | CNY | 135,207,871 | Barclays Bank PLC | 3/11/2022 | (36,401) |
USD | 3,322,808 | CZK | 74,899,000 | JPMorgan Chase Bank N.A. | 1/14/2022 | (101,921) |
USD | 344,931 | CZK | 7,843,822 | JPMorgan Chase Bank N.A. | 3/11/2022 | (11,789) |
USD | 755,953 | DKK | 4,986,301 | JPMorgan Chase Bank N.A. | 3/11/2022 | (8,460) |
USD | 707,571 | EUR | 624,000 | Barclays Bank PLC | 1/14/2022 | (2,992) |
USD | 2,313,634 | EUR | 2,050,000 | Credit Suisse Group | 1/14/2022 | (20,749) |
USD | 2,865,107 | EUR | 2,529,212 | Deutsche Bank AG | 1/14/2022 | (14,967) |
USD | 220,413 | EUR | 195,598 | Goldman Sachs International | 1/14/2022 | (2,319) |
USD | 80,041,256 | EUR | 70,979,325 | Goldman Sachs International | 3/11/2022 | (877,759) |
USD | 5,987,449 | EUR | 5,293,149 | HSBC Bank | 1/14/2022 | (39,986) |
USD | 7,297,237 | EUR | 6,472,079 | JPMorgan Chase Bank N.A. | 3/11/2022 | (81,169) |
USD | 19,184,238 | EUR | 16,953,362 | JPMorgan Chase Bank N.A. | 3/16/2022 | (145,511) |
USD | 566,886 | EUR | 497,830 | NatWest Markets PLC | 1/14/2022 | (4) |
USD | 560,737 | EUR | 499,705 | UBS AG | 1/14/2022 | (8,288) |
USD | 1,663,218 | GBP | 1,230,000 | Credit Suisse Group | 1/14/2022 | (1,616) |
USD | 2,674,740 | GBP | 2,010,218 | Deutsche Bank AG | 1/14/2022 | (46,140) |
USD | 6,399,355 | GBP | 4,834,069 | Goldman Sachs International | 3/11/2022 | (141,983) |
USD | 1,678,187 | GBP | 1,245,000 | JPMorgan Chase Bank N.A. | 1/14/2022 | (6,951) |
USD | 1,653,240 | GBP | 1,251,000 | JPMorgan Chase Bank N.A. | 3/16/2022 | (39,536) |
USD | 171,437 | GBP | 128,033 | Morgan Stanley Capital Services, Inc. | 1/14/2022 | (1,858) |
USD | 1,114,124 | IDR | 16,018,869,000 | JPMorgan Chase Bank N.A. | 2/22/2022 | (5,353) |
USD | 423,025 | ILS | 1,321,342 | JPMorgan Chase Bank N.A. | 3/11/2022 | (2,205) |
USD | 404,501 | JPY | 46,642,784 | HSBC Bank | 1/14/2022 | (1,008) |
USD | 743,066 | MXN | 15,905,487 | Goldman Sachs International | 3/11/2022 | (24,732) |
USD | 1,709,862 | NZD | 2,510,000 | Goldman Sachs International | 1/14/2022 | (9,090) |
Forward Foreign Currency Exchange Contracts - continued | ||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||
Liability Derivatives - continued | ||||||
USD | 1,657,286 | NZD | 2,454,000 | JPMorgan Chase Bank N.A. | 1/14/2022 | $ (23,315) |
USD | 3,361,438 | NZD | 4,980,114 | JPMorgan Chase Bank N.A. | 3/11/2022 | (46,097) |
USD | 581,426 | PLN | 2,384,778 | Goldman Sachs International | 3/11/2022 | (7,542) |
USD | 2,035,556 | SEK | 18,432,333 | JPMorgan Chase Bank N.A. | 3/16/2022 | (5,479) |
USD | 554,729 | SGD | 758,723 | JPMorgan Chase Bank N.A. | 3/11/2022 | (8,083) |
USD | 413,310 | TWD | 11,514,000 | Barclays Bank PLC | 1/21/2022 | (2,843) |
USD | 1,281,917 | TWD | 35,686,000 | JPMorgan Chase Bank N.A. | 1/21/2022 | (7,891) |
USD | 1,662,570 | TWD | 46,000,000 | JPMorgan Chase Bank N.A. | 2/18/2022 | (13) |
USD | 4,261,057 | ZAR | 68,980,122 | JPMorgan Chase Bank N.A. | 3/16/2022 | (24,200) |
$(4,057,421) |
Futures Contracts | ||||||
Description | Long/ Short | Currency | Contracts | Notional Amount | Expiration Date | Value/Unrealized Appreciation (Depreciation) |
Asset Derivatives | ||||||
Equity Futures | ||||||
CAC 40 Index | Long | EUR | 47 | $3,822,182 | January – 2022 | $91,116 |
FTSE 100 Index | Long | GBP | 143 | 14,176,162 | March – 2022 | 177,783 |
FTSE MIB Index | Long | EUR | 129 | 20,009,085 | March – 2022 | 291,613 |
FTSE/JSE Top 40 Index | Long | ZAR | 110 | 4,624,487 | March – 2022 | 104,098 |
Hang Seng Index | Long | HKD | 34 | 5,112,722 | January – 2022 | 55,464 |
Mexbol Index | Long | MXN | 332 | 8,717,240 | March – 2022 | 410,582 |
MSCI Singapore Index | Long | SGD | 13 | 328,135 | January – 2022 | 3,810 |
OMX 30 Index | Long | SEK | 764 | 20,454,472 | January – 2022 | 608,163 |
S&P/TSX 60 Index | Long | CAD | 23 | 4,658,002 | March – 2022 | 76,222 |
Topix Index | Long | JPY | 14 | 2,424,411 | March – 2022 | 50,740 |
$1,869,591 | ||||||
Interest Rate Futures | ||||||
Canadian Treasury Bond 10 yr | Long | CAD | 48 | $5,411,882 | March – 2022 | $79,750 |
Euro-Bund 10 yr | Short | EUR | 265 | 51,702,740 | March – 2022 | 879,147 |
Euro-Buxl 30 yr | Short | EUR | 12 | 2,824,481 | March – 2022 | 143,697 |
Japan Government Bond 10 yr | Short | JPY | 13 | 17,131,792 | March – 2022 | 54,077 |
Long Gilt 10 yr | Short | GBP | 138 | 23,330,058 | March – 2022 | 354,641 |
$1,511,312 | ||||||
$3,380,903 | ||||||
Liability Derivatives | ||||||
Equity Futures | ||||||
AEX 25 Index | Short | EUR | 62 | $11,261,305 | January – 2022 | $(121,023) |
BIST 30 Index | Long | TRY | 7,203 | 11,417,863 | February – 2022 | (300,431) |
DAX Index | Short | EUR | 13 | 5,866,916 | March – 2022 | (35,449) |
FTSE Taiwan Index | Short | USD | 293 | 18,793,020 | January – 2022 | (108,996) |
IBEX 35 Index | Short | EUR | 26 | 2,570,669 | January – 2022 | (78,987) |
IBOV Index | Long | BRL | 367 | 6,972,012 | February – 2022 | (307,173) |
KOSPI 200 Index | Short | KRW | 93 | 7,710,883 | March – 2022 | (104,299) |
NIFTY Index | Short | USD | 510 | 17,788,290 | January – 2022 | (198,319) |
Russell 2000 Index | Short | USD | 121 | 13,568,940 | March – 2022 | (167,057) |
S&P 500 E-Mini Index | Short | USD | 126 | 29,978,550 | March – 2022 | (623,633) |
Description | Long/ Short | Currency | Contracts | Notional Amount | Expiration Date | Value/Unrealized Appreciation (Depreciation) |
Liability Derivatives - continued | ||||||
Equity Futures - continued | ||||||
S&P/ASX 200 Index | Short | AUD | 155 | $20,713,076 | March – 2022 | $(259,822) |
$(2,305,189) | ||||||
Interest Rate Futures | ||||||
Australian Bond 10 yr | Long | AUD | 515 | $52,144,363 | March – 2022 | $(130,864) |
Canadian Treasury Bond 5 yr | Short | CAD | 78 | 7,553,042 | March – 2022 | (26,898) |
Euro-Bobl 5 yr | Long | EUR | 145 | 21,995,585 | March – 2022 | (180,273) |
U.S. Treasury Bond | Short | USD | 22 | 3,529,625 | March – 2022 | (49,617) |
U.S. Treasury Note 10 yr | Short | USD | 36 | 4,696,875 | March – 2022 | (39,974) |
U.S. Treasury Note 2 yr | Long | USD | 38 | 8,290,531 | March – 2022 | (2,793) |
U.S. Treasury Note 5 yr | Short | USD | 175 | 21,170,898 | March – 2022 | (82,574) |
U.S. Treasury Ultra Bond | Long | USD | 13 | 2,562,625 | March – 2022 | (55,339) |
U.S. Treasury Ultra Note 10 yr | Short | USD | 87 | 12,740,062 | March – 2022 | (239,045) |
$(807,377) | ||||||
$(3,112,566) |
Cleared Swap Agreements | ||||||||||
Maturity Date | Notional Amount | Counterparty | Cash Flows to Receive/ Frequency | Cash Flows to Pay/ Frequency | Unrealized Appreciation (Depreciation) | Net Unamortized Upfront Payments (Receipts) | Value | |||
Asset Derivatives | ||||||||||
Interest Rate Swaps | ||||||||||
9/17/31 | USD | 14,500,000 | centrally cleared | 0.12% FLR (3-Month LIBOR)/Quarterly | 1.21%/Semi-annually | $408,998 | $13,324 | $422,322 | ||
Liability Derivatives | ||||||||||
Interest Rate Swaps | ||||||||||
9/20/23 | USD | 69,300,000 | centrally cleared | 0.29%/Semi-annually | 0.12% FLR (3-Month LIBOR)/Quarterly | $(578,813) | $(9,308) | $(588,121) | ||
9/16/26 | USD | 60,500,000 | centrally cleared | 0.79%/Semi-annually | 0.12% FLR (3-Month LIBOR)/Quarterly | (1,376,012) | (25,513) | (1,401,525) | ||
11/06/49 | USD | 13,102,083 | centrally cleared | 0.12% FLR (3-Month LIBOR)/Quarterly | 1.89%/Semi-annually | (502,027) | — | (502,027) | ||
$(2,456,852) | $(34,821) | $(2,491,673) |
Uncleared Swap Agreements | ||||||||||
Maturity Date | Notional Amount | Counterparty | Cash Flows to Receive/ Frequency | Cash Flows to Pay/ Frequency | Unrealized Appreciation (Depreciation) | Net Unamortized Upfront Payments (Receipts) | Value | |||
Asset Derivatives | ||||||||||
Credit Default Swaps | ||||||||||
12/20/26 | EUR | 542,000 | Goldman Sachs International | 5.00%/Quarterly | (1) | $(1,191) | $117,524 | $116,333 | ||
12/20/31 | EUR | 640,000 | Barclays Bank PLC | 1.00%/Quarterly | (2) | (544) | 6,965 | 6,421 | ||
$(1,735) | $124,489 | $122,754 |
Financial Statements | Statement of Assets and Liabilities |
At 12/31/21Assets | |
Investments in unaffiliated issuers, at value, including $428,492 of securities on loan (identified cost, $439,377,306) | $510,471,429 |
Investments in affiliated issuers, at value (identified cost, $12,950,052) | 12,950,052 |
Cash | 32,645 |
Foreign currency, at value (identified cost, $16,939) | 16,989 |
Restricted cash for | |
Forward foreign currency exchange contracts | 370,000 |
Deposits with brokers for | |
Futures contracts | 1,298,880 |
Cleared options | 11,568 |
Receivables for | |
Forward foreign currency exchange contracts | 3,243,319 |
Investments sold | 660,032 |
TBA sale commitments | 103,631 |
Fund shares sold | 8,439 |
Interest and dividends | 3,025,665 |
Uncleared swaps, at value (net of unamortized premiums paid, $124,489) | 122,754 |
Receivable from investment adviser | 46,987 |
Other assets | 2,468 |
Total assets | $532,364,858 |
Liabilities | |
Payables for | |
Net daily variation margin on open cleared swap agreements | $56,962 |
Forward foreign currency exchange contracts | 4,057,421 |
Net daily variation margin on open futures contracts | 256,033 |
Investments purchased | 105,209 |
TBA purchase commitments | 4,716,570 |
Fund shares reacquired | 212,767 |
Payable to affiliates | |
Administrative services fee | 442 |
Shareholder servicing costs | 88 |
Distribution and/or service fees | 6,632 |
Payable for independent Trustees' compensation | 474 |
Deferred country tax expense payable | 4,922 |
Accrued expenses and other liabilities | 204,110 |
Total liabilities | $9,621,630 |
Net assets | $522,743,228 |
Net assets consist of | |
Paid-in capital | $419,918,156 |
Total distributable earnings (loss) | 102,825,072 |
Net assets | $522,743,228 |
Shares of beneficial interest outstanding | 34,687,461 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $39,122,531 | 2,548,067 | $15.35 |
Service Class | 483,620,697 | 32,139,394 | 15.05 |
Financial Statements | Statement of Operations |
Year ended 12/31/21 | |
Net investment income (loss) | |
Income | |
Interest | $7,968,163 |
Dividends | 5,431,104 |
Dividends from affiliated issuers | 11,694 |
Income on securities loaned | 2,028 |
Other | 59 |
Foreign taxes withheld | (298,670) |
Total investment income | $13,114,378 |
Expenses | |
Management fee | $3,957,960 |
Distribution and/or service fees | 1,279,041 |
Shareholder servicing costs | 13,885 |
Administrative services fee | 82,628 |
Independent Trustees' compensation | 9,928 |
Custodian fee | 129,611 |
Shareholder communications | 103,538 |
Audit and tax fees | 94,943 |
Legal fees | 2,772 |
Miscellaneous | 124,614 |
Total expenses | $5,798,920 |
Reduction of expenses by investment adviser | (215,559) |
Net expenses | $5,583,361 |
Net investment income (loss) | $7,531,017 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers (net of $261 country tax) | $33,932,650 |
Written options | 605,605 |
Futures contracts | (6,291,504) |
Swap agreements | 1,000,796 |
Forward foreign currency exchange contracts | 5,178,956 |
Foreign currency | (1,007,641) |
Net realized gain (loss) | $33,418,862 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers (net of $4,922 increase in deferred country tax) | $(26,732,246) |
Futures contracts | 921,188 |
Swap agreements | (1,298,368) |
Forward foreign currency exchange contracts | 848,884 |
Translation of assets and liabilities in foreign currencies | (305,314) |
Net unrealized gain (loss) | $(26,565,856) |
Net realized and unrealized gain (loss) | $6,853,006 |
Change in net assets from operations | $14,384,023 |
Financial Statements | Statements of Changes in Net Assets |
Year ended | ||
12/31/21 | 12/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $7,531,017 | $6,760,505 |
Net realized gain (loss) | 33,418,862 | 19,865,576 |
Net unrealized gain (loss) | (26,565,856) | 4,492,245 |
Change in net assets from operations | $14,384,023 | $31,118,326 |
Total distributions to shareholders | $(29,054,748) | $(34,497,547) |
Change in net assets from fund share transactions | $(36,801,795) | $(21,278,512) |
Total change in net assets | $(51,472,520) | $(24,657,733) |
Net assets | ||
At beginning of period | 574,215,748 | 598,873,481 |
At end of period | $522,743,228 | $574,215,748 |
Financial Statements | Financial Highlights |
Initial Class | Year ended | ||||
12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $15.79 | $15.86 | $14.58 | $16.11 | $15.04 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.25 | $0.22 | $0.29 | $0.29 | $0.26 |
Net realized and unrealized gain (loss) | 0.19 | 0.71 | 1.80 | (0.99) | 1.36 |
Total from investment operations | $0.44 | $0.93 | $2.09 | $(0.70) | $1.62 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.16) | $(0.28) | $(0.45) | $(0.13) | $(0.51) |
From net realized gain | (0.72) | (0.72) | (0.36) | (0.70) | (0.04) |
Total distributions declared to shareholders | $(0.88) | $(1.00) | $(0.81) | $(0.83) | $(0.55) |
Net asset value, end of period (x) | $15.35 | $15.79 | $15.86 | $14.58 | $16.11 |
Total return (%) (k)(r)(s)(x) | 2.79 | 6.23 | 14.58 | (4.50) | 10.83 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.82 | 0.83 | 0.81 | 0.81 | 0.81 |
Expenses after expense reductions | 0.78 | 0.82 | 0.80 | 0.80 | 0.80 |
Net investment income (loss) | 1.59 | 1.45 | 1.85 | 1.83 | 1.64 |
Portfolio turnover | 132 | 120 | 82 | 86 | 35 |
Net assets at end of period (000 omitted) | $39,123 | $43,513 | $46,175 | $47,517 | $56,096 |
Service Class | Year ended | ||||
12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $15.49 | $15.57 | $14.32 | $15.84 | $14.79 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.21 | $0.18 | $0.24 | $0.24 | $0.22 |
Net realized and unrealized gain (loss) | 0.19 | 0.70 | 1.77 | (0.98) | 1.34 |
Total from investment operations | $0.40 | $0.88 | $2.01 | $(0.74) | $1.56 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.12) | $(0.24) | $(0.40) | $(0.08) | $(0.47) |
From net realized gain | (0.72) | (0.72) | (0.36) | (0.70) | (0.04) |
Total distributions declared to shareholders | $(0.84) | $(0.96) | $(0.76) | $(0.78) | $(0.51) |
Net asset value, end of period (x) | $15.05 | $15.49 | $15.57 | $14.32 | $15.84 |
Total return (%) (k)(r)(s)(x) | 2.58 | 5.99 | 14.30 | (4.80) | 10.58 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 1.07 | 1.08 | 1.06 | 1.06 | 1.06 |
Expenses after expense reductions | 1.03 | 1.07 | 1.05 | 1.05 | 1.05 |
Net investment income (loss) | 1.34 | 1.19 | 1.60 | 1.58 | 1.39 |
Portfolio turnover | 132 | 120 | 82 | 86 | 35 |
Net assets at end of period (000 omitted) | $483,621 | $530,703 | $552,698 | $559,478 | $706,456 |
(d) | Per share data is based on average shares outstanding. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(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 | $102,966,663 | $— | $— | $102,966,663 |
Switzerland | 2,565,163 | 12,208,381 | — | 14,773,544 |
United Kingdom | 13,899,890 | — | — | 13,899,890 |
Japan | 11,459,841 | — | — | 11,459,841 |
France | 9,040,343 | — | — | 9,040,343 |
Canada | 6,067,944 | — | — | 6,067,944 |
Germany | 5,261,551 | — | — | 5,261,551 |
Netherlands | 3,636,901 | — | — | 3,636,901 |
Taiwan | 3,605,568 | — | — | 3,605,568 |
Other Countries | 13,860,523 | 3,958,007 | — | 17,818,530 |
U.S. Treasury Bonds & U.S. Government Agencies & Equivalents | — | 10,373,581 | — | 10,373,581 |
Non - U.S. Sovereign Debt | — | 131,004,355 | — | 131,004,355 |
Municipal Bonds | — | 2,177,851 | — | 2,177,851 |
U.S. Corporate Bonds | — | 53,656,296 | — | 53,656,296 |
Residential Mortgage-Backed Securities | — | 21,466,297 | — | 21,466,297 |
Commercial Mortgage-Backed Securities | — | 15,169,958 | — | 15,169,958 |
Asset-Backed Securities (including CDOs) | — | 10,706,820 | — | 10,706,820 |
Foreign Bonds | — | 77,385,496 | — | 77,385,496 |
Mutual Funds | 12,950,052 | — | — | 12,950,052 |
Total | $185,314,439 | $338,107,042 | $— | $523,421,481 |
Other Financial Instruments | ||||
Futures Contracts – Assets | $2,481,127 | $899,776 | $— | $3,380,903 |
Futures Contracts – Liabilities | (2,998,130) | (114,436) | — | (3,112,566) |
Forward Foreign Currency Exchange Contracts – Assets | — | 3,243,319 | — | 3,243,319 |
Forward Foreign Currency Exchange Contracts – Liabilities | — | (4,057,421) | — | (4,057,421) |
Swap Agreements – Assets | — | 545,076 | — | 545,076 |
Swap Agreements – Liabilities | — | (2,491,673) | — | (2,491,673) |
Fair Value (a) | |||
Risk | Derivative Contracts | Asset Derivatives | Liability Derivatives |
Interest Rate | Futures Contracts | $1,511,312 | $(807,377) |
Equity | Futures Contracts | 1,869,591 | (2,305,189) |
Interest Rate | Cleared Swap Agreements | 422,322 | (2,491,673) |
Credit | Uncleared Swap Agreements | 122,754 | — |
Foreign Exchange | Forward Foreign Currency Exchange Contracts | 3,243,319 | (4,057,421) |
Interest Rate | Purchased Option Contracts | 842,604 | — |
Equity | Purchased Option Contracts | 14,175 | — |
Total | $8,026,077 | $(9,661,660) |
Risk | Futures Contracts | Swap Agreements | Forward Foreign Currency Exchange Contracts | Unaffiliated Issuers (Purchased Options) | Written Options |
Interest Rate | $2,149,581 | $980,171 | $— | $— | $— |
Foreign Exchange | — | — | 5,178,956 | — | — |
Credit | — | 20,625 | — | (174,196) | 53,264 |
Equity | (8,441,085) | — | — | (1,088,849) | 552,341 |
Total | $(6,291,504) | $1,000,796 | $5,178,956 | $(1,263,045) | $605,605 |
Risk | Futures Contracts | Swap Agreements | Forward Foreign Currency Exchange Contracts | Unaffiliated Issuers (Purchased Options) |
Interest Rate | $1,031,385 | $(1,292,640) | $— | $349,624 |
Foreign Exchange | — | — | 848,884 | — |
Equity | (110,197) | — | — | 31,477 |
Credit | — | (5,728) | — | — |
Total | $921,188 | $(1,298,368) | $848,884 | $381,101 |
Gross Amounts of: | Derivative Assets | Derivative Liabilities |
Futures Contracts (a) | $— | $(256,033) |
Uncleared Swaps, at value | 122,754 | — |
Cleared Swap Agreements (a) | — | (56,962) |
Forward Foreign Currency Exchange Contracts | 3,243,319 | (4,057,421) |
Purchased Options | 856,779 | — |
Total Gross Amount of Derivative Assets and Liabilities Presented in the Statement of Assets & Liabilities | $4,222,852 | $(4,370,416) |
Less: Derivatives Assets and Liabilities Not Subject to a Master Netting Agreement or Similar Arrangement | 409,630 | (660,036) |
Total Gross Amount of Derivative Assets and Liabilities Subject to a Master Netting Agreement or Similar Arrangement | $3,813,222 | $(3,710,380) |
Amounts Not Offset in the Statement of Assets & Liabilities | |||||
Gross Amount of Derivative Assets Subject to a Master Netting Agreement (or Similar Arrangement) by Counterparty | Financial Instruments Available for Offset | Financial Instruments Collateral Received (b) | Cash Collateral Received (b) | Net Amount of Derivative Assets by Counterparty | |
Barclays Bank PLC | $29,926 | $(29,926) | $— | $— | $— |
Brown Brothers Harriman Co. | 13,968 | (13,968) | — | — | — |
Citibank N.A. | 72,511 | (36,526) | — | — | 35,985 |
Deutsche Bank AG | 428,528 | (354,558) | — | — | 73,970 |
Goldman Sachs International | 1,020,588 | (1,020,588) | — | — | — |
JPMorgan Chase Bank N.A. | 1,368,274 | (1,368,274) | — | — | — |
Merrill Lynch International | 845,679 | (132,950) | — | (712,729) | — |
Morgan Stanley Capital Services, Inc. | 33,748 | (13,573) | — | — | 20,175 |
Total | $3,813,222 | $(2,970,363) | $— | $(712,729) | $130,130 |
Amounts Not Offset in the Statement of Assets & Liabilities | |||||
Gross Amount of Derivative Liabilities Subject to a Master Netting Agreement (or Similar Arrangement) by Counterparty | Financial Instruments Available for Offset | Financial Instruments Collateral Pledged (b) | Cash Collateral Pledged (b) | Net Amount of Derivative Liabilities by Counterparty | |
Barclays Bank PLC | $(42,236) | $29,926 | $— | $— | $(12,310) |
Brown Brothers Harriman Co. | (19,284) | 13,968 | — | — | (5,316) |
Citibank N.A. | (36,526) | 36,526 | — | — | — |
Deutsche Bank AG | (354,558) | 354,558 | — | — | — |
Goldman Sachs International | (1,273,377) | 1,020,588 | — | — | (252,789) |
JPMorgan Chase Bank N.A. | (1,837,876) | 1,368,274 | — | 370,000 | (99,602) |
Merrill Lynch International | (132,950) | 132,950 | — | — | — |
Morgan Stanley Capital Services, Inc. | (13,573) | 13,573 | — | — | — |
Total | $(3,710,380) | $2,970,363 | $— | $370,000 | $(370,017) |
Year ended 12/31/21 | Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $10,579,419 | $27,045,497 |
Long-term capital gains | 18,475,329 | 7,452,050 |
Total distributions | $29,054,748 | $34,497,547 |
As of 12/31/21 | |
Cost of investments | $456,006,420 |
Gross appreciation | 75,977,158 |
Gross depreciation | (11,054,459) |
Net unrealized appreciation (depreciation) | $64,922,699 |
Undistributed ordinary income | 8,902,326 |
Undistributed long-term capital gain | 29,236,775 |
Other temporary differences | (236,728) |
Total distributable earnings (loss) | $102,825,072 |
Year ended 12/31/21 | Year ended 12/31/20 | ||
Initial Class | $2,213,951 | $2,739,813 | |
Service Class | 26,840,797 | 31,757,734 | |
Total | $29,054,748 | $34,497,547 |
Up to $300 million | 0.75% |
In excess of $300 million and up to $2.5 billion | 0.675% |
In excess of $2.5 billion | 0.65% |
Purchases | Sales | |
U.S. Government securities | $132,168,087 | $154,859,473 |
Non-U.S. Government securities | 562,046,404 | 575,412,944 |
Year ended 12/31/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 69,401 | $1,081,967 | 100,173 | $1,507,014 | |
Service Class | 734,621 | 11,362,268 | 1,140,931 | 17,184,459 | |
804,022 | $12,444,235 | 1,241,104 | $18,691,473 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | 143,205 | $2,213,951 | 183,634 | $2,739,813 | |
Service Class | 1,770,501 | 26,840,797 | 2,167,763 | 31,757,734 | |
1,913,706 | $29,054,748 | 2,351,397 | $34,497,547 | ||
Shares reacquired | |||||
Initial Class | (419,823) | $(6,649,980) | (440,732) | $(6,677,947) | |
Service Class | (4,618,366) | (71,650,798) | (4,551,744) | (67,789,585) | |
(5,038,189) | $(78,300,778) | (4,992,476) | $(74,467,532) | ||
Net change | |||||
Initial Class | (207,217) | $(3,354,062) | (156,925) | $(2,431,120) | |
Service Class | (2,113,244) | (33,447,733) | (1,243,050) | (18,847,392) | |
(2,320,461) | $(36,801,795) | (1,399,975) | $(21,278,512) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $37,119,815 | $487,904,156 | $512,073,919 | $— | $— | $12,950,052 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $11,694 | $— |
February 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 | 135 | 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 | 135 | Private investor | N/A | |||||
Steven E. Buller (age 70) | Trustee | February 2014 | 135 | Private investor | N/A | |||||
John A. Caroselli (age 67) | Trustee | March 2017 | 135 | Private investor; JC Global Advisors, LLC (management consulting), President (since 2015) | N/A | |||||
Maureen R. Goldfarb (age 66) | Trustee | January 2009 | 135 | Private investor | N/A | |||||
Peter D. Jones (age 66) | Trustee | January 2019 | 135 | Private investor | N/A | |||||
James W. Kilman, Jr. (age 60) | Trustee | January 2019 | 135 | 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) | |||||
Clarence Otis, Jr. (age 65) | Trustee | March 2017 | 135 | Private investor | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director | |||||
Maryanne L. Roepke (age 65) | Trustee | May 2014 | 135 | Private investor | N/A | |||||
Laurie J. Thomsen (age 64) | Trustee | March 2005 | 135 | 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 | 135 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | ||||
Kino Clark (k) (age 53) | Assistant Treasurer | January 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
John W. Clark, Jr. (k) (age 54) | Assistant Treasurer | April 2017 | 135 | Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head - Treasurer's Office (until February 2017) | ||||
Thomas H. Connors (k) (age 62) | Assistant Secretary and Assistant Clerk | September 2012 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
David L. DiLorenzo (k) (age 53) | President | July 2005 | 135 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 54) | Secretary and Clerk | April 2017 | 135 | 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 48) | Assistant Secretary and Assistant Clerk | June 2006 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
Amanda S. Mooradian (k) (age 42) | Assistant Secretary and Assistant Clerk | September 2018 | 135 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 51) | Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Kasey L. Phillips (k) (age 51) | Assistant Treasurer | September 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 47) | Assistant Secretary and Assistant Clerk | October 2014 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Martin J. Wolin (k) (age 54) | Chief Compliance Officer | July 2015 | 135 | Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer | ||||
James O. Yost (k) (age 61) | Treasurer | September 1990 | 135 | 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 | Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 |
Portfolio Manager(s) | |
Pilar Gomez-Bravo Steven Gorham Andy Li Johnathan Munko Vipin Narula Benjamin Nastou Henry Peabody Jonathan Sage Natalie Shapiro Erich Shigley Robert Spector Erik Weisman |
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. |
Securities Portfolio
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34 |
Mortgage-Backed Securities | 47.8% |
U.S. Treasury Securities | 39.3% |
Commercial Mortgage-Backed Securities | 4.0% |
Collateralized Debt Obligations | 2.7% |
Municipal Bonds | 1.8% |
Investment Grade Corporates | 0.9% |
U.S. Government Agencies | 0.8% |
Non-U.S. Government Bonds | 0.4% |
Asset-Backed Securities | 0.1% |
AAA | 5.4% |
AA | 2.0% |
A | 2.2% |
BBB | 0.3% |
U.S. Government | 37.7% |
Federal Agencies | 48.6% |
Not Rated | 1.6% |
Cash & Cash Equivalents | 3.7% |
Other | (1.5)% |
Average Duration (d) | 5.6 |
Average Effective Maturity (m) | 7.0 yrs. |
(a) | For all securities other than those specifically described below, ratings are assigned to underlying securities utilizing ratings from Moody’s, Fitch, and Standard & Poor’s rating agencies and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. If none of the 3 rating agencies above assign a rating, but the security is rated by DBRS Morningstar, then the DBRS Morningstar rating is assigned. If none of the 4 rating agencies listed above rate the security, but the security is rated by the Kroll Bond Rating Agency (KBRA), then the KBRA rating is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). Securities rated BBB or higher are considered investment grade. All ratings are subject to change. U.S. Government includes securities issued by the U.S. Department of the Treasury. Federal Agencies includes rated and unrated U.S. Agency fixed-income securities, U.S. Agency mortgage-backed securities, and collateralized mortgage obligations of U.S. Agency mortgage-backed securities. Not Rated includes fixed income securities and fixed income derivatives that have not been rated by any rating agency. The fund may or may not have held all of these instruments on this date. The fund is not rated by these agencies. |
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value due to the interest rate move. |
(i) | For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining each instrument’s effective maturity for purposes of calculating the fund’s dollar-weighted average effective maturity, MFS uses the instrument’s stated maturity or, if applicable, an earlier date on which MFS believes it is probable that a maturity-shortening device (such as a put, pre-refunding or prepayment) will cause the instrument to be repaid. Such an earlier date can be substantially shorter than the instrument’s stated maturity. |
Geoffrey Schechter and Jake Stone
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value. |
(y) | A yield curve graphically depicts the yields of different maturity bonds of the same credit quality and type; a normal yield curve is upward sloping, with short-term rates lower than long-term rates. |
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr |
Initial Class | 6/12/85 | (1.89)% | 2.69% | 1.96% |
Service Class | 8/24/01 | (2.14)% | 2.45% | 1.70% |
Bloomberg U.S. Government/Mortgage Bond Index (f) | (1.77)% | 2.85% | 2.21% |
(f) | Source: FactSet Research Systems Inc. |
(a) | Source: Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg or Bloomberg's licensors own all proprietary rights in the Bloomberg Indices. Bloomberg neither approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith. |
July 1, 2021 through December 31, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 7/01/21 | Ending Account Value 12/31/21 | Expenses Paid During Period (p) 7/01/21-12/31/21 | |
Initial Class | Actual | 0.58% | $1,000.00 | $997.41 | $2.92 |
Hypothetical (h) | 0.58% | $1,000.00 | $1,022.28 | $2.96 | |
Service Class | Actual | 0.83% | $1,000.00 | $995.72 | $4.18 |
Hypothetical (h) | 0.83% | $1,000.00 | $1,021.02 | $4.23 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Bonds – 95.8% | ||||
Asset-Backed & Securitized – 6.8% | ||||
3650R Commercial Mortgage Trust, 2021-PF1, “XA”, 1.038%, 11/15/2054 (i) | $ | 3,622,462 | $ 263,954 | |
ACREC 2021-FL1 Ltd., “AS”, FLR, 1.603% (LIBOR - 1mo. + 1.5%), 10/16/2036 (n) | 1,293,000 | 1,287,193 | ||
ACREC 2021-FL1 Ltd., “B”, FLR, 1.903% (LIBOR - 1mo. + 1.8%), 10/16/2036 (n) | 1,003,500 | 998,961 | ||
Allegro CLO Ltd., 2016-1A, “BR2”, FLR, 1.673% (LIBOR - 3mo. + 1.55%), 1/15/2030 (n) | 635,246 | 635,260 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL1, “B”, FLR, 1.609% (LIBOR - 1mo. + 1.5%), 12/15/2035 (n) | 671,500 | 668,352 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL3, “AS”, FLR, 1.509% (LIBOR - 1mo. + 1.4%), 8/15/2034 (n) | 1,107,000 | 1,102,901 | ||
BBCMS Mortgage Trust, 2021-C10, “XA”, 1.307%, 7/15/2054 (i) | 3,665,568 | 346,496 | ||
BBCMS Mortgage Trust, 2021-C9, “XA”, 1.638%, 2/15/2054 (i) | 2,398,010 | 281,265 | ||
BDS Ltd., 2021-FL9, “A”, 1.173%, 11/16/2038 (n) | 989,500 | 984,687 | ||
Benchmark Mortgage Trust, 2021-B23, “XA”, 1.276%, 2/15/2054 (i) | 7,645,914 | 679,635 | ||
Benchmark Mortgage Trust, 2021-B24, “XA”, 1.154%, 3/15/2054 (i) | 4,512,845 | 367,625 | ||
Benchmark Mortgage Trust, 2021-B26, “XA”, 0.999%, 6/15/2054 (i) | 6,480,340 | 420,818 | ||
Benchmark Mortgage Trust, 2021-B27, “XA”, 1.271%, 7/15/2054 (i) | 5,817,849 | 543,631 | ||
Benchmark Mortgage Trust, 2021-B28, “XA”, 1.291%, 8/15/2054 (i) | 6,809,503 | 639,960 | ||
Benchmark Mortgage Trust, 2021-B29, “XA”, 1.049%, 9/15/2054 (i)(n) | 7,601,572 | 564,866 | ||
BPCRE Holder LLC, FLR, 0.958% (LIBOR - 1mo. + 0.85%), 2/15/2037 (n) | 215,525 | 215,279 | ||
BPCRE Holder LLC, FLR, 1.658% (LIBOR - 1mo. + 1.55%), 2/15/2037 (n) | 225,500 | 225,280 | ||
BSPDF 2021-FL1 Issuer Ltd., “A”, 1.309%, 10/15/2036 (n) | 614,500 | 612,220 | ||
BSPDF 2021-FL1 Issuer Ltd., “AS”, FLR, 1.589% (LIBOR - 1mo. + 1.48%), 10/15/2036 (n) | 777,500 | 779,681 | ||
BXMT Ltd., 2021-FL4, “AS”, FLR, 1.409% (LIBOR - 1mo. + 1.3%), 5/15/2038 (n) | 1,344,000 | 1,339,800 | ||
Capital Automotive, 2020-1A, “A4”, REIT, 3.19%, 2/15/2050 (n) | 268,454 | 273,444 | ||
Citigroup Commercial Mortgage Trust, 2019-XA, “C7”, 0.873%, 12/15/2072 (i)(n) | 4,431,845 | 257,722 | ||
Commercial Mortgage Pass-Through Certificates, 2021-BN31, “XA”, 1.334%, 2/15/2054 (i) | 5,893,544 | 575,747 | ||
Commercial Mortgage Pass-Through Certificates, 2021-BN32, “XA”, 0.783%, 4/15/2054 (i) | 3,312,648 | 188,544 | ||
Commercial Mortgage Pass-Through Certificates, 2021-BN35, “XA”, 1.053%, 6/15/2064 (i) | 2,252,164 | 176,915 | ||
Commercial Mortgage Trust, 2015-DC1, “A5”, 3.35%, 2/10/2048 | 1,136,000 | 1,190,638 | ||
CSAIL Commercial Mortgage Trust, 2015-C2, “A4”, 3.504%, 6/15/2057 | 144,366 | 152,144 | ||
GS Mortgage Securities Trust, 2015-GC30, “A4”, 3.382%, 5/10/2050 | 1,965,000 | 2,071,191 | ||
GS Mortgage Securities Trust, 2015-GC32, “A2”, 3.062%, 7/10/2048 | 115,678 | 116,985 | ||
LoanCore Ltd., 2021-CRE5, “AS”, FLR, 1.859% (LIBOR - 1mo. + 1.75%), 7/15/2036 (n) | 1,110,500 | 1,109,131 | ||
Madison Park Funding Ltd., 2014-13A, “BR2”, FLR, 1.623% (LIBOR - 3mo. + 1.5%), 4/19/2030 (n) | 1,572,067 | 1,578,862 | ||
MF1 CLO Ltd., 2021-FL5, “AS”, FLR, 1.364% (LIBOR - 1mo. + 1.2%), 7/15/2036 (n) | 664,500 | 663,911 | ||
MF1 CLO Ltd., 2021-FL5, “B”, FLR, 1.614% (LIBOR - 1mo. + 1.45%), 7/15/2036 (n) | 836,500 | 832,897 | ||
MF1 Multi-Family Housing Mortgage Loan Trust, 2020-FL4, “A”, FLR, 1.864% (LIBOR - 1mo. + 1.7%), 11/15/2035 (n) | 836,000 | 838,938 | ||
Morgan Stanley Capital I Trust, 2018-H4, “XA”, 0.836%, 12/15/2051 (i) | 6,087,658 | 299,430 | ||
Morgan Stanley Capital I Trust, 2021-L5, “XA”, 1.3%, 5/15/2054 (i) | 2,881,313 | 265,441 | ||
Morgan Stanley Capital I Trust, 2021-L6, “XA”, 1.237%, 6/15/2054 (i) | 3,548,805 | 297,061 | ||
Morgan Stanley Capital I Trust, 2021-L7, “XA”, 1.107%, 10/15/2054 (i) | 13,457,623 | 1,062,817 | ||
Palmer Square Loan Funding Ltd., 2020-1A, “A2”, FLR, 1.509% (LIBOR - 3mo. + 1.35%), 2/20/2028 (n) | 680,583 | 677,677 | ||
PFP III Ltd., 2021-7, “AS”, FLR, 1.259% (LIBOR - 1mo. + 1.15%), 4/14/2038 (n) | 932,953 | 928,465 | ||
ReadyCap Commercial Mortgage Trust, 2021-FL7, “A”, FLR, 1.28% (LIBOR - 1mo. + 1.2%), 11/25/2036 (z) | 669,964 | 669,555 | ||
ReadyCap Commercial Mortgage Trust, 2021-FL7, “AS”, FLR, 1.58% (LIBOR - 1mo. + 1.5%), 11/25/2036 (z) | 206,000 | 205,808 | ||
Symphony CLO Ltd., 2016-17A, “BR”, FLR, 1.323% (LIBOR - 3mo. + 1.2%), 4/15/2028 (n) | 1,332,260 | 1,329,588 | ||
Wells Fargo Commercial Mortgage Trust, 2018-C48, “XA”, 0.949%, 1/15/2052 (i)(n) | 3,520,396 | 202,379 | ||
Wells Fargo Commercial Mortgage Trust, 2021-C60, “XA”, 1.557%, 8/15/2054 (i) | 1,331,195 | 154,282 | ||
$29,077,436 | ||||
Automotive – 0.1% | ||||
Hyundai Capital America, 2.375%, 2/10/2023 (n) | $ | 405,000 | $ 410,606 | |
Consumer Services – 0.1% | ||||
Conservation Fund, 3.474%, 12/15/2029 | $ | 563,000 | $ 594,203 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Industrial – 0.1% | ||||
Howard University, Washington D.C., 2.738%, 10/01/2022 | $ | 98,000 | $ 98,605 | |
Howard University, Washington D.C., 2.801%, 10/01/2023 | 108,000 | 110,397 | ||
Howard University, Washington D.C., AGM, 2.416%, 10/01/2024 | 119,000 | 121,297 | ||
Howard University, Washington D.C., AGM, 2.516%, 10/01/2025 | 147,000 | 148,259 | ||
$478,558 | ||||
Major Banks – 0.2% | ||||
JPMorgan Chase & Co., 1.578% to 4/22/2026, FLR (SOFR + 0.885%) to 4/22/2027 | $ | 938,000 | $ 926,945 | |
Medical & Health Technology & Services – 0.3% | ||||
ProMedica Toledo Hospital, “B”, AGM, 5.325%, 11/15/2028 | $ | 879,000 | $ 1,033,880 | |
ProMedica Toledo Hospital, “B”, AGM, 5.75%, 11/15/2038 | 246,000 | 287,062 | ||
$1,320,942 | ||||
Mortgage-Backed – 47.7% | ||||
Fannie Mae, 5.5%, 5/01/2022 - 3/01/2038 | $ | 3,766,168 | $ 4,280,025 | |
Fannie Mae, 2.152%, 1/25/2023 | 488,645 | 492,353 | ||
Fannie Mae, 2.73%, 4/01/2023 | 456,465 | 463,907 | ||
Fannie Mae, 2.41%, 5/01/2023 | 576,196 | 584,635 | ||
Fannie Mae, 2.55%, 5/01/2023 | 494,940 | 502,820 | ||
Fannie Mae, 4.5%, 5/01/2025 - 4/01/2041 | 2,638,793 | 2,904,056 | ||
Fannie Mae, 4%, 3/25/2028 - 2/01/2045 | 9,172,371 | 10,017,233 | ||
Fannie Mae, 3%, 11/01/2028 - 5/25/2053 | 5,976,622 | 6,254,742 | ||
Fannie Mae, 6.5%, 9/01/2031 - 10/01/2037 | 375,317 | 427,846 | ||
Fannie Mae, 2.5%, 11/01/2031 - 10/01/2046 | 975,144 | 995,626 | ||
Fannie Mae, 3.5%, 12/25/2031 - 2/25/2036 (i) | 363,079 | 35,730 | ||
Fannie Mae, 3%, 2/25/2033 (i) | 421,801 | 41,483 | ||
Fannie Mae, 5%, 11/01/2033 - 3/01/2041 | 2,526,338 | 2,847,343 | ||
Fannie Mae, 6%, 8/01/2034 - 7/01/2037 | 411,819 | 467,502 | ||
Fannie Mae, 3.5%, 4/01/2038 - 7/01/2046 | 4,226,060 | 4,536,038 | ||
Fannie Mae, 2%, 10/25/2040 - 4/25/2046 | 618,536 | 624,308 | ||
Fannie Mae, 1.75%, 10/25/2041 | 969,522 | 974,221 | ||
Fannie Mae, 2.75%, 9/25/2042 | 399,713 | 410,580 | ||
Fannie Mae, UMBS, 2.5%, 2/01/2050 - 12/01/2051 | 2,678,718 | 2,752,202 | ||
Fannie Mae, UMBS, 2%, 1/01/2051 - 2/01/2051 | 762,305 | 763,247 | ||
Fannie Mae, UMBS, 3%, 12/01/2051 | 1,749,556 | 1,827,747 | ||
Freddie Mac, 5.5%, 5/01/2022 - 6/01/2041 | 898,226 | 1,024,813 | ||
Freddie Mac, 4.5%, 11/01/2022 - 5/01/2042 | 1,074,714 | 1,180,324 | ||
Freddie Mac, 3.32%, 2/25/2023 | 1,936,790 | 1,984,950 | ||
Freddie Mac, 5%, 4/01/2023 - 12/01/2044 | 1,489,999 | 1,674,365 | ||
Freddie Mac, 3.25%, 4/25/2023 | 3,486,705 | 3,577,268 | ||
Freddie Mac, 6%, 6/01/2023 - 10/01/2038 | 1,204,868 | 1,356,898 | ||
Freddie Mac, 3.06%, 7/25/2023 | 326,000 | 335,727 | ||
Freddie Mac, 0.893%, 4/25/2024 (i) | 13,086,159 | 224,242 | ||
Freddie Mac, 0.603%, 7/25/2024 (i) | 17,091,016 | 180,905 | ||
Freddie Mac, 3.064%, 8/25/2024 | 1,685,495 | 1,758,158 | ||
Freddie Mac, 2.67%, 12/25/2024 | 3,924,000 | 4,076,283 | ||
Freddie Mac, 2.811%, 1/25/2025 | 3,025,000 | 3,156,549 | ||
Freddie Mac, 4%, 7/01/2025 - 4/01/2044 | 1,031,255 | 1,122,404 | ||
Freddie Mac, 3.5%, 1/15/2027 - 10/25/2058 | 11,797,499 | 12,614,665 | ||
Freddie Mac, 1.367%, 3/25/2027 (i) | 1,030,000 | 68,880 | ||
Freddie Mac, 0.576%, 7/25/2027 (i) | 29,692,784 | 862,840 | ||
Freddie Mac, 0.429%, 8/25/2027 (i) | 24,554,128 | 550,791 | ||
Freddie Mac, 0.291%, 1/25/2028 (i) | 42,487,512 | 757,302 | ||
Freddie Mac, 0.302%, 1/25/2028 (i) | 17,498,615 | 320,835 | ||
Freddie Mac, 0.132%, 2/25/2028 (i) | 49,468,415 | 464,197 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Mortgage-Backed – continued | ||||
Freddie Mac, 2.5%, 3/15/2028 | $ | 154,431 | $ 155,955 | |
Freddie Mac, 0.119%, 4/25/2028 (i) | 31,865,556 | 279,082 | ||
Freddie Mac, 3%, 6/15/2028 - 2/25/2059 | 8,506,741 | 8,954,124 | ||
Freddie Mac, 1.089%, 7/25/2029 (i) | 4,428,938 | 325,408 | ||
Freddie Mac, 1.143%, 8/25/2029 (i) | 7,686,107 | 592,466 | ||
Freddie Mac, 1.798%, 4/25/2030 (i) | 1,602,831 | 217,853 | ||
Freddie Mac, 1.868%, 4/25/2030 (i) | 4,034,514 | 569,433 | ||
Freddie Mac, 1.662%, 5/25/2030 (i) | 2,174,913 | 277,124 | ||
Freddie Mac, 1.796%, 5/25/2030 (i) | 4,905,689 | 672,094 | ||
Freddie Mac, 1.341%, 6/25/2030 (i) | 1,983,331 | 205,914 | ||
Freddie Mac, 1.599%, 8/25/2030 (i) | 1,814,781 | 227,229 | ||
Freddie Mac, 1.169%, 9/25/2030 (i) | 1,149,690 | 107,233 | ||
Freddie Mac, 1.081%, 11/25/2030 (i) | 2,249,951 | 197,743 | ||
Freddie Mac, 0.33%, 1/25/2031 (i) | 8,737,404 | 225,703 | ||
Freddie Mac, 0.781%, 1/25/2031 (i) | 3,359,280 | 220,201 | ||
Freddie Mac, 0.936%, 1/25/2031 (i) | 2,545,825 | 197,335 | ||
Freddie Mac, 0.529%, 3/25/2031 (i) | 6,970,433 | 295,064 | ||
Freddie Mac, 0.74%, 3/25/2031 (i) | 2,967,667 | 187,263 | ||
Freddie Mac, 1.224%, 5/25/2031 (i) | 1,210,235 | 125,864 | ||
Freddie Mac, 0.937%, 7/25/2031 (i) | 1,944,368 | 160,234 | ||
Freddie Mac, 0.508%, 8/25/2031 (i) | 2,464,577 | 109,156 | ||
Freddie Mac, 0.536%, 9/25/2031 (i) | 8,016,720 | 390,189 | ||
Freddie Mac, 0.855%, 9/25/2031 (i) | 2,478,687 | 187,083 | ||
Freddie Mac, 0.349%, 11/25/2031 (i) | 11,978,818 | 390,147 | ||
Freddie Mac, 0.567%, 12/25/2031 (i) | 1,981,491 | 98,760 | ||
Freddie Mac, 6.5%, 8/01/2032 - 5/01/2037 | 221,041 | 251,583 | ||
Freddie Mac, 5.5%, 2/15/2036 (i) | 103,483 | 18,561 | ||
Freddie Mac, 4.5%, 12/15/2040 (i) | 37,047 | 3,550 | ||
Freddie Mac, 1.75%, 8/15/2041 | 314,967 | 319,383 | ||
Freddie Mac, UMBS, 6.5%, 8/01/2032 | 20,851 | 23,531 | ||
Freddie Mac, UMBS, 3%, 7/01/2050 | 24,415 | 25,705 | ||
Freddie Mac, UMBS, 2.5%, 10/01/2051 - 12/01/2051 | 1,490,663 | 1,532,536 | ||
Ginnie Mae, 5.5%, 7/15/2033 - 1/20/2042 | 821,035 | 939,492 | ||
Ginnie Mae, 5.691%, 8/20/2034 | 308,303 | 346,395 | ||
Ginnie Mae, 4%, 5/16/2039 - 7/20/2041 | 871,091 | 934,369 | ||
Ginnie Mae, 4.5%, 8/15/2039 - 9/20/2041 | 2,054,429 | 2,296,196 | ||
Ginnie Mae, 3.5%, 10/20/2041 (i) | 161,000 | 10,879 | ||
Ginnie Mae, 3.5%, 12/15/2041 - 6/20/2043 | 2,596,830 | 2,801,224 | ||
Ginnie Mae, 2.5%, 6/20/2042 - 11/20/2051 | 5,149,651 | 5,280,399 | ||
Ginnie Mae, 4%, 8/16/2042 (i) | 180,401 | 23,653 | ||
Ginnie Mae, 2.25%, 9/20/2043 | 179,955 | 181,358 | ||
Ginnie Mae, 3%, 4/20/2045 - 11/20/2051 | 5,370,497 | 5,592,007 | ||
Ginnie Mae, 0.585%, 2/16/2059 (i) | 822,973 | 34,659 | ||
Ginnie Mae, TBA, 3%, 7/20/2049 | 1,225,000 | 1,267,450 | ||
Ginnie Mae, TBA, 4%, 1/20/2052 | 250,000 | 263,258 | ||
Ginnie Mae, TBA, 2%, 1/21/2052 | 3,525,000 | 3,556,825 | ||
Ginnie Mae, TBA, 2.5%, 1/21/2052 | 2,125,000 | 2,176,130 | ||
Ginnie Mae, TBA, 3.5%, 1/21/2052 | 3,525,000 | 3,670,391 | ||
UMBS, TBA, 2%, 1/16/2036 - 7/25/2051 | 44,900,000 | 44,976,365 | ||
UMBS, TBA, 2.5%, 1/18/2037 - 7/25/2051 | 20,650,000 | 21,085,999 | ||
UMBS, TBA, 1.5%, 1/19/2037 | 2,125,000 | 2,130,687 | ||
UMBS, TBA, 3%, 1/19/2037 - 1/13/2052 | 9,725,000 | 10,076,669 | ||
$ 204,683,951 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Municipals – 1.8% | ||||
California Earthquake Authority Rev., “B”, 1.477%, 7/01/2023 | $ | 210,000 | $ 211,866 | |
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “B”, 3%, 6/01/2046 | 780,000 | 798,997 | ||
Massachusetts Educational Financing Authority, Education Loan Rev., “A”, 2.562%, 7/01/2026 | 70,000 | 72,177 | ||
Massachusetts Educational Financing Authority, Education Loan Rev., “A”, 2.682%, 7/01/2027 | 335,000 | 347,306 | ||
Michigan Finance Authority Tobacco Settlement Asset-Backed Rev. (2006 Sold Tobacco Receipts), “A-1”, 2.326%, 6/01/2030 | 313,269 | 318,731 | ||
New Jersey Economic Development Authority State Pension Funding Rev., Capital Appreciation, “B”, AGM, 0%, 2/15/2023 | 2,991,000 | 2,961,749 | ||
New York Transportation Development Corp., Special Facilities Taxable Rev. (Terminal 4 John F. Kennedy International Airport Project), “B”, 1.61%, 12/01/2022 | 130,000 | 130,669 | ||
Philadelphia, PA, School District, “A”, AGM, 5.995%, 9/01/2030 | 960,000 | 1,227,687 | ||
Port of Oakland, CA, Senior Lien Refunding Taxable Rev., “R”, 1.517%, 5/01/2026 | 295,000 | 294,155 | ||
Rhode Island Student Loan Authority, Education Loan Rev., “1”, 2.195%, 12/01/2039 | 55,000 | 55,327 | ||
Texas Transportation Commission, Central Texas Turnpike System First Tier Refunding Rev., Taxable, “B”, 1.98%, 8/15/2042 | 690,000 | 694,448 | ||
West Virginia Tobacco Settlement Financing Authority Asset-Backed Refunding, “A-1”, 1.497%, 6/01/2024 | 280,000 | 280,156 | ||
West Virginia Tobacco Settlement Financing Authority Asset-Backed Refunding, “A-1”, 1.647%, 6/01/2025 | 225,000 | 223,957 | ||
$7,617,225 | ||||
Supranational – 0.4% | ||||
Inter-American Development Bank, 4.375%, 1/24/2044 | $ | 1,093,000 | $ 1,509,877 | |
U.S. Government Agencies and Equivalents – 0.8% | ||||
Small Business Administration, 6.07%, 3/01/2022 | $ | 7,749 | $ 7,764 | |
Small Business Administration, 4.98%, 11/01/2023 | 23,735 | 24,445 | ||
Small Business Administration, 4.77%, 4/01/2024 | 74,742 | 76,855 | ||
Small Business Administration, 5.52%, 6/01/2024 | 33,313 | 34,514 | ||
Small Business Administration, 4.99%, 9/01/2024 | 6,803 | 6,975 | ||
Small Business Administration, 5.11%, 4/01/2025 | 52,414 | 54,444 | ||
Small Business Administration, 2.21%, 2/01/2033 | 468,242 | 474,012 | ||
Small Business Administration, 2.22%, 3/01/2033 | 730,516 | 740,042 | ||
Small Business Administration, 3.15%, 7/01/2033 | 709,318 | 742,010 | ||
Small Business Administration, 3.16%, 8/01/2033 | 412,835 | 431,723 | ||
Small Business Administration, 3.62%, 9/01/2033 | 274,559 | 290,526 | ||
Tennessee Valley Authority, 0.75%, 5/15/2025 | 707,000 | 697,251 | ||
$3,580,561 | ||||
U.S. Treasury Obligations – 37.5% | ||||
U.S. Treasury Bonds, 6.25%, 8/15/2023 | $ | 2,891,000 | $ 3,153,900 | |
U.S. Treasury Bonds, 6%, 2/15/2026 | 2,699,000 | 3,224,040 | ||
U.S. Treasury Bonds, 6.75%, 8/15/2026 | 1,862,000 | 2,320,663 | ||
U.S. Treasury Bonds, 6.375%, 8/15/2027 | 326,000 | 415,421 | ||
U.S. Treasury Bonds, 1.625%, 5/15/2031 | 6,239,000 | 6,317,962 | ||
U.S. Treasury Bonds, 4.5%, 8/15/2039 | 1,287,500 | 1,818,191 | ||
U.S. Treasury Bonds, 3.125%, 2/15/2043 | 8,176,700 | 9,855,159 | ||
U.S. Treasury Bonds, 2.875%, 5/15/2043 | 13,519,500 | 15,710,081 | ||
U.S. Treasury Bonds, 2.5%, 2/15/2045 (f) | 21,059,000 | 23,159,142 | ||
U.S. Treasury Bonds, 2.875%, 11/15/2046 | 2,917,000 | 3,450,150 | ||
U.S. Treasury Notes, 1.5%, 9/15/2022 | 2,500,000 | 2,521,387 | ||
U.S. Treasury Notes, 0.125%, 9/30/2022 | 8,770,000 | 8,758,352 | ||
U.S. Treasury Notes, 0.125%, 2/28/2023 | 15,517,800 | 15,454,153 | ||
U.S. Treasury Notes, 2.5%, 3/31/2023 | 9,000,000 | 9,221,836 | ||
U.S. Treasury Notes, 0.125%, 5/31/2023 | 8,057,000 | 8,006,958 | ||
U.S. Treasury Notes, 0.125%, 6/30/2023 | 7,893,000 | 7,839,661 | ||
U.S. Treasury Notes, 0.375%, 10/31/2023 | 2,189,900 | 2,176,983 | ||
U.S. Treasury Notes, 0.75%, 12/31/2023 | 12,875,300 | 12,877,815 | ||
U.S. Treasury Notes, 2.5%, 5/15/2024 | 5,385,000 | 5,594,089 | ||
U.S. Treasury Notes, 2%, 8/15/2025 | 438,000 | 451,722 | ||
U.S. Treasury Notes, 2.625%, 12/31/2025 | 2,800,000 | 2,960,563 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
U.S. Treasury Obligations – continued | ||||
U.S. Treasury Notes, 2.75%, 2/15/2028 | $ | 6,000,000 | $ 6,484,688 | |
U.S. Treasury Notes, 1.5%, 2/15/2030 | 3,800,000 | 3,819,594 | ||
U.S. Treasury Notes, 1.375%, 11/15/2031 | 4,361,500 | 4,306,300 | ||
U.S. Treasury Notes, 1.875%, 11/15/2051 | 1,291,400 | 1,281,109 | ||
$ 161,179,919 | ||||
Total Bonds (Identified Cost, $397,759,778) | $ 411,380,223 | |||
Investment Companies (h) – 24.0% | ||||
Money Market Funds – 24.0% | ||||
MFS Institutional Money Market Portfolio, 0.07% (v) (Identified Cost, $102,834,176) | 102,834,176 | $ 102,834,176 | ||
Other Assets, Less Liabilities – (19.8)% | (84,961,918) | |||
Net Assets – 100.0% | $ 429,252,481 |
(f) | All or a portion of the security has been segregated as collateral for open futures contracts. |
(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 $102,834,176 and $411,380,223, respectively. |
(i) | Interest only security for which the fund receives interest on notional principal (Par amount). Par amount shown is the notional principal and does not reflect the cost of the security. |
(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 $18,518,100, representing 4.3% of net assets. |
(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. |
(z) | Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. The fund holds the following restricted securities: |
Restricted Securities | Acquisition Date | Cost | Value |
ReadyCap Commercial Mortgage Trust, 2021-FL7, “A”, FLR, 1.28% (LIBOR - 1mo. + 1.2%), 11/25/2036 | 11/12/21 | $669,964 | $669,555 |
ReadyCap Commercial Mortgage Trust, 2021-FL7, “AS”, FLR, 1.58% (LIBOR - 1mo. + 1.5%), 11/25/2036 | 11/12/21 | 206,000 | 205,808 |
Total Restricted Securities | $875,363 | ||
% of Net assets | 0.2% |
The following abbreviations are used in this report and are defined: | |
AGM | Assured Guaranty Municipal |
CLO | Collateralized Loan Obligation |
FLR | Floating Rate. Interest rate resets periodically based on the parenthetically disclosed reference rate plus a spread (if any). The period-end rate reported may not be the current rate. All reference rates are USD unless otherwise noted. |
LIBOR | London Interbank Offered Rate |
REIT | Real Estate Investment Trust |
SOFR | Secured Overnight Financing Rate |
TBA | To Be Announced |
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: | |
JPY | Japanese Yen |
Derivative Contracts at 12/31/21 | ||||||
Forward Foreign Currency Exchange Contracts | ||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||
Asset Derivatives | ||||||
USD | 43,080,998 | JPY | 4,880,000,000 | State Street Bank Corp. | 1/04/2022 | $ 657,282 |
Liability Derivatives | ||||||
JPY | 920,003,000 | USD | 8,059,998 | HSBC Bank | 1/04/2022 | $ (62,058) |
JPY | 1,584,662,000 | USD | 13,890,481 | JPMorgan Chase Bank N.A. | 1/04/2022 | (114,406) |
USD | 40,533 | JPY | 4,665,000 | Merrill Lynch International | 1/04/2022 | (21) |
$(176,485) |
Futures Contracts | ||||||
Description | Long/ Short | Currency | Contracts | Notional Amount | Expiration Date | Value/Unrealized Appreciation (Depreciation) |
Asset Derivatives | ||||||
Interest Rate Futures | ||||||
U.S. Treasury Note 10 yr | Long | USD | 352 | $45,925,000 | March – 2022 | $442,439 |
U.S. Treasury Note 2 yr | Short | USD | 91 | 19,853,641 | March – 2022 | 2,963 |
U.S. Treasury Ultra Bond | Long | USD | 9 | 1,774,125 | March – 2022 | 44,966 |
$490,368 | ||||||
Liability Derivatives | ||||||
Interest Rate Futures | ||||||
U.S. Treasury Bond | Short | USD | 60 | $9,626,250 | March – 2022 | $(135,317) |
U.S. Treasury Note 5 yr | Short | USD | 79 | 9,557,148 | March – 2022 | (31,458) |
U.S. Treasury Ultra Note 10 yr | Short | USD | 12 | 1,757,250 | March – 2022 | (1,731) |
$(168,506) |
Financial Statements | Statement of Assets and Liabilities |
At 12/31/21Assets | |
Investments in unaffiliated issuers, at value (identified cost, $397,759,778) | $411,380,223 |
Investments in affiliated issuers, at value (identified cost, $102,834,176) | 102,834,176 |
Cash | 18,000 |
Foreign currency, at value (identified cost, $21,000,618) | 20,690,254 |
Receivables for | |
Forward foreign currency exchange contracts | 657,282 |
Investments sold | 15,032 |
TBA sale commitments | 7,542,942 |
Fund shares sold | 278 |
Interest | 1,499,711 |
Other assets | 2,172 |
Total assets | $544,640,070 |
Liabilities | |
Payables for | |
Forward foreign currency exchange contracts | $176,485 |
Net daily variation margin on open futures contracts | 4,420 |
Investments purchased | 18,071,908 |
TBA purchase commitments | 96,895,852 |
Fund shares reacquired | 131,102 |
Payable to affiliates | |
Investment adviser | 5,131 |
Administrative services fee | 373 |
Shareholder servicing costs | 57 |
Distribution and/or service fees | 2,085 |
Payable for independent Trustees' compensation | 319 |
Accrued expenses and other liabilities | 99,857 |
Total liabilities | $115,387,589 |
Net assets | $429,252,481 |
Net assets consist of | |
Paid-in capital | $436,104,685 |
Total distributable earnings (loss) | (6,852,204) |
Net assets | $429,252,481 |
Shares of beneficial interest outstanding | 34,844,616 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $276,951,429 | 22,435,318 | $12.34 |
Service Class | 152,301,052 | 12,409,298 | 12.27 |
Financial Statements | Statement of Operations |
Year ended 12/31/21 | |
Net investment income (loss) | |
Income | |
Interest | $8,307,310 |
Dividends from affiliated issuers | 47,782 |
Other | 68 |
Total investment income | $8,355,160 |
Expenses | |
Management fee | $2,448,087 |
Distribution and/or service fees | 392,508 |
Shareholder servicing costs | 9,001 |
Administrative services fee | 68,667 |
Independent Trustees' compensation | 8,411 |
Custodian fee | 28,822 |
Shareholder communications | 27,610 |
Audit and tax fees | 65,569 |
Legal fees | 2,138 |
Miscellaneous | 54,938 |
Total expenses | $3,105,751 |
Reduction of expenses by investment adviser | (117,632) |
Net expenses | $2,988,119 |
Net investment income (loss) | $5,367,041 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $1,979,581 |
Futures contracts | (227,260) |
Forward foreign currency exchange contracts | (118,925) |
Foreign currency | 38 |
Net realized gain (loss) | $1,633,434 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $(16,197,374) |
Futures contracts | 140,288 |
Forward foreign currency exchange contracts | 792,356 |
Translation of assets and liabilities in foreign currencies | (657,639) |
Net unrealized gain (loss) | $(15,922,369) |
Net realized and unrealized gain (loss) | $(14,288,935) |
Change in net assets from operations | $(8,921,894) |
Financial Statements | Statements of Changes in Net Assets |
Year ended | ||
12/31/21 | 12/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $5,367,041 | $8,911,228 |
Net realized gain (loss) | 1,633,434 | 3,747,385 |
Net unrealized gain (loss) | (15,922,369) | 14,592,878 |
Change in net assets from operations | $(8,921,894) | $27,251,491 |
Total distributions to shareholders | $(9,420,124) | $(12,348,081) |
Change in net assets from fund share transactions | $(3,014,218) | $(26,909,816) |
Total change in net assets | $(21,356,236) | $(12,006,406) |
Net assets | ||
At beginning of period | 450,608,717 | 462,615,123 |
At end of period | $429,252,481 | $450,608,717 |
Financial Statements | Financial Highlights |
Initial Class | Year ended | ||||
12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $12.86 | $12.45 | $12.04 | $12.39 | $12.51 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.16 | $0.27 | $0.31 | $0.30 | $0.31 |
Net realized and unrealized gain (loss) | (0.40) | 0.52 | 0.48 | (0.25) | (0.03) |
Total from investment operations | $(0.24) | $0.79 | $0.79 | $0.05 | $0.28 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.28) | $(0.38) | $(0.38) | $(0.40) | $(0.40) |
Net asset value, end of period (x) | $12.34 | $12.86 | $12.45 | $12.04 | $12.39 |
Total return (%) (k)(r)(s)(x) | (1.89) | 6.38 | 6.53 | 0.47 | 2.22 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.61 | 0.61 | 0.60 | 0.60 | 0.60 |
Expenses after expense reductions | 0.58 | 0.58 | 0.58 | 0.59 | 0.60 |
Net investment income (loss) | 1.29 | 2.11 | 2.53 | 2.45 | 2.45 |
Portfolio turnover | 314 | 154 | 47 | 35 | 24 |
Net assets at end of period (000 omitted) | $276,951 | $290,413 | $298,414 | $310,387 | $364,445 |
Service Class | Year ended | ||||
12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $12.79 | $12.38 | $11.96 | $12.31 | $12.42 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.13 | $0.24 | $0.28 | $0.26 | $0.27 |
Net realized and unrealized gain (loss) | (0.40) | 0.52 | 0.48 | (0.24) | (0.02) |
Total from investment operations | $(0.27) | $0.76 | $0.76 | $0.02 | $0.25 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.25) | $(0.35) | $(0.34) | $(0.37) | $(0.36) |
Net asset value, end of period (x) | $12.27 | $12.79 | $12.38 | $11.96 | $12.31 |
Total return (%) (k)(r)(s)(x) | (2.14) | 6.12 | 6.35 | 0.17 | 2.03 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.86 | 0.86 | 0.85 | 0.85 | 0.85 |
Expenses after expense reductions | 0.83 | 0.83 | 0.83 | 0.84 | 0.85 |
Net investment income (loss) | 1.04 | 1.86 | 2.27 | 2.20 | 2.20 |
Portfolio turnover | 314 | 154 | 47 | 35 | 24 |
Net assets at end of period (000 omitted) | $152,301 | $160,196 | $164,201 | $171,938 | $212,050 |
(d) | Per share data is based on average shares outstanding. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(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 |
U.S. Treasury Bonds & U.S. Government Agencies & Equivalents | $— | $164,760,480 | $— | $164,760,480 |
Non - U.S. Sovereign Debt | — | 1,509,877 | — | 1,509,877 |
Municipal Bonds | — | 7,617,225 | — | 7,617,225 |
U.S. Corporate Bonds | — | 3,731,254 | — | 3,731,254 |
Residential Mortgage-Backed Securities | — | 204,683,951 | — | 204,683,951 |
Commercial Mortgage-Backed Securities | — | 17,223,655 | — | 17,223,655 |
Asset-Backed Securities (including CDOs) | — | 11,853,781 | — | 11,853,781 |
Mutual Funds | 102,834,176 | — | — | 102,834,176 |
Total | $102,834,176 | $411,380,223 | $— | $514,214,399 |
Other Financial Instruments | ||||
Futures Contracts – Assets | $490,368 | $— | $— | $490,368 |
Futures Contracts – Liabilities | (168,506) | — | — | (168,506) |
Forward Foreign Currency Exchange Contracts – Assets | — | 657,282 | — | 657,282 |
Forward Foreign Currency Exchange Contracts – Liabilities | — | (176,485) | — | (176,485) |
Fair Value (a) | |||
Risk | Derivative Contracts | Asset Derivatives | Liability Derivatives |
Interest Rate | Futures Contracts | $490,368 | $(168,506) |
Foreign Exchange | Forward Foreign Currency Exchange Contracts | 657,282 | (176,485) |
Total | $1,147,650 | $(344,991) |
Risk | Futures Contracts | Forward Foreign Currency Exchange Contracts |
Interest Rate | $(227,260) | $— |
Foreign Exchange | — | (118,925) |
Total | $(227,260) | $(118,925) |
Risk | Futures Contracts | Forward Foreign Currency Exchange Contracts |
Interest Rate | $140,288 | $— |
Foreign Exchange | — | 792,356 |
Total | $140,288 | $792,356 |
Year ended 12/31/21 | Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $9,420,124 | $12,348,081 |
As of 12/31/21 | |
Cost of investments | $504,252,543 |
Gross appreciation | 12,338,049 |
Gross depreciation | (1,573,534) |
Net unrealized appreciation (depreciation) | $10,764,515 |
Undistributed ordinary income | 6,870,469 |
Capital loss carryforwards | (24,176,824) |
Other temporary differences | (310,364) |
Total distributable earnings (loss) | $(6,852,204) |
Short-Term | $(4,831,240) |
Long-Term | (19,345,584) |
Total | $(24,176,824) |
Year ended 12/31/21 | Year ended 12/31/20 | ||
Initial Class | $6,321,329 | $8,352,164 | |
Service Class | 3,098,795 | 3,995,917 | |
Total | $9,420,124 | $12,348,081 |
Up to $1 billion | 0.55% |
In excess of $1 billion | 0.50% |
Purchases | Sales | |
U.S. Government securities | $1,304,239,219 | $1,277,137,160 |
Non-U.S. Government securities | 25,743,842 | 55,519,173 |
Year ended 12/31/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 1,560,415 | $19,830,990 | 2,525,329 | $33,014,801 | |
Service Class | 1,405,435 | 17,566,861 | 2,337,906 | 30,171,357 | |
2,965,850 | $37,397,851 | 4,863,235 | $63,186,158 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | 508,145 | $6,321,329 | 649,974 | $8,352,164 | |
Service Class | 250,307 | 3,098,795 | 312,425 | 3,995,917 | |
758,452 | $9,420,124 | 962,399 | $12,348,081 | ||
Shares reacquired | |||||
Initial Class | (2,207,397) | $(27,733,951) | (4,567,529) | $(58,895,260) | |
Service Class | (1,768,881) | (22,098,242) | (3,392,174) | (43,548,795) | |
(3,976,278) | $(49,832,193) | (7,959,703) | $(102,444,055) | ||
Net change | |||||
Initial Class | (138,837) | $(1,581,632) | (1,392,226) | $(17,528,295) | |
Service Class | (113,139) | (1,432,586) | (741,843) | (9,381,521) | |
(251,976) | $(3,014,218) | (2,134,069) | $(26,909,816) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $36,456,029 | $234,324,303 | $167,946,156 | $— | $— | $102,834,176 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $47,782 | $— |
February 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 | 135 | 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 | 135 | Private investor | N/A | |||||
Steven E. Buller (age 70) | Trustee | February 2014 | 135 | Private investor | N/A | |||||
John A. Caroselli (age 67) | Trustee | March 2017 | 135 | Private investor; JC Global Advisors, LLC (management consulting), President (since 2015) | N/A | |||||
Maureen R. Goldfarb (age 66) | Trustee | January 2009 | 135 | Private investor | N/A | |||||
Peter D. Jones (age 66) | Trustee | January 2019 | 135 | Private investor | N/A | |||||
James W. Kilman, Jr. (age 60) | Trustee | January 2019 | 135 | 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) | |||||
Clarence Otis, Jr. (age 65) | Trustee | March 2017 | 135 | Private investor | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director | |||||
Maryanne L. Roepke (age 65) | Trustee | May 2014 | 135 | Private investor | N/A | |||||
Laurie J. Thomsen (age 64) | Trustee | March 2005 | 135 | 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 | 135 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | ||||
Kino Clark (k) (age 53) | Assistant Treasurer | January 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
John W. Clark, Jr. (k) (age 54) | Assistant Treasurer | April 2017 | 135 | Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head - Treasurer's Office (until February 2017) | ||||
Thomas H. Connors (k) (age 62) | Assistant Secretary and Assistant Clerk | September 2012 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
David L. DiLorenzo (k) (age 53) | President | July 2005 | 135 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 54) | Secretary and Clerk | April 2017 | 135 | 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 48) | Assistant Secretary and Assistant Clerk | June 2006 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
Amanda S. Mooradian (k) (age 42) | Assistant Secretary and Assistant Clerk | September 2018 | 135 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 51) | Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Kasey L. Phillips (k) (age 51) | Assistant Treasurer | September 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 47) | Assistant Secretary and Assistant Clerk | October 2014 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Martin J. Wolin (k) (age 54) | Chief Compliance Officer | July 2015 | 135 | Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer | ||||
James O. Yost (k) (age 61) | Treasurer | September 1990 | 135 | 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 | Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 |
Portfolio Manager(s) | |
Geoffrey Schechter Jake 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. |
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Cable TV | 7.9% |
Gaming & Lodging | 6.6% |
Medical & Health Technology & Services | 6.3% |
Midstream | 4.5% |
Metals & Mining | 4.0% |
BBB | 0.6% |
BB | 43.6% |
B | 38.7% |
CCC | 13.2% |
CC | 0.1% |
C (o) | 0.0% |
Not Rated | (1.3)% |
Non-Fixed Income | 0.2% |
Cash & Cash Equivalents | 3.4% |
Other | 1.5% |
Average Duration (d) | 3.6 |
Average Effective Maturity (m) | 4.3 yrs. |
(a) | For all securities other than those specifically described below, ratings are assigned to underlying securities utilizing ratings from Moody’s, Fitch, and Standard & Poor’s rating agencies and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. If none of the 3 rating agencies above assign a rating, but the security is rated by DBRS Morningstar, then the DBRS Morningstar rating is assigned. If none of the 4 rating agencies listed above rate the security, but the security is rated by the Kroll Bond Rating Agency (KBRA), then the KBRA rating is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). Securities rated BBB or higher are considered investment grade. All ratings are subject to change. Not Rated includes fixed income securities and fixed income derivatives that have not been rated by any rating agency. Non-Fixed Income includes equity securities (including convertible bonds and equity derivatives) and/or commodity-linked derivatives. The fund may or may not have held all of these instruments on this date. The fund is not rated by these agencies. |
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value due to the interest rate move. |
(i) | For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining each instrument’s effective maturity for purposes of calculating the fund’s dollar-weighted average effective maturity, MFS uses the instrument’s stated maturity or, if applicable, an earlier date on which MFS believes it is probable that a maturity-shortening device (such as a put, pre-refunding or prepayment) will cause the instrument to be repaid. Such an earlier date can be substantially shorter than the instrument’s stated maturity. |
(o) | Less than 0.1%. |
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value. |
(h) | Security was not held in the portfolio at period end. |
(r) | Securities rated “BBB”, “Baa”, or higher are considered investment grade; securities rated “BB”, “Ba”, or below are considered non-investment grade. Ratings are assigned to underlying securities utilizing ratings from Moody's, Fitch, and Standard & Poor's and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the |
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr |
Initial Class | 6/12/85 | 3.49% | 5.24% | 5.87% |
Service Class | 8/24/01 | 3.08% | 4.93% | 5.58% |
Bloomberg U.S. Corporate High-Yield Bond 2% Issuer Capped Index (f) | 5.26% | 6.28% | 6.82% |
(f) | Source: FactSet Research Systems Inc. |
(a) | Source: Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg or Bloomberg's licensors own all proprietary rights in the Bloomberg Indices. Bloomberg neither approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith. |
July 1, 2021 through December 31, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 7/01/21 | Ending Account Value 12/31/21 | Expenses Paid During Period (p) 7/01/21-12/31/21 | |
Initial Class | Actual | 0.72% | $1,000.00 | $1,009.97 | $3.65 |
Hypothetical (h) | 0.72% | $1,000.00 | $1,021.58 | $3.67 | |
Service Class | Actual | 0.97% | $1,000.00 | $1,007.48 | $4.91 |
Hypothetical (h) | 0.97% | $1,000.00 | $1,020.32 | $4.94 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Bonds – 95.0% | ||||
Aerospace & Defense – 2.2% | ||||
Bombardier, Inc., 7.5%, 3/15/2025 (n) | $ | 738,000 | $ 751,838 | |
Bombardier, Inc., 7.125%, 6/15/2026 (n) | 727,000 | 754,197 | ||
F-Brasile S.p.A./F-Brasile U.S. LLC, 7.375%, 8/15/2026 (n) | 1,070,000 | 1,064,650 | ||
Moog, Inc., 4.25%, 12/15/2027 (n) | 1,515,000 | 1,526,362 | ||
TransDigm, Inc., 6.25%, 3/15/2026 (n) | 1,060,000 | 1,101,737 | ||
TransDigm, Inc., 6.375%, 6/15/2026 | 985,000 | 1,012,063 | ||
TransDigm, Inc., 5.5%, 11/15/2027 | 705,000 | 726,150 | ||
TransDigm, Inc., 4.625%, 1/15/2029 | 614,000 | 611,962 | ||
$7,548,959 | ||||
Asset-Backed & Securitized – 0.0% | ||||
CWCapital Cobalt Ltd., CDO, “F”, FLR, 0%, (0% cash or 2.291% PIK), (LIBOR - 3mo. + 1.3%), 4/26/2050 (a)(n)(p) | $ | 1,288,571 | $ 129 | |
Automotive – 2.5% | ||||
Dana, Inc., 5.375%, 11/15/2027 | $ | 726,000 | $ 761,353 | |
Dana, Inc., 5.625%, 6/15/2028 | 147,000 | 156,188 | ||
Dana, Inc., 4.25%, 9/01/2030 | 480,000 | 486,600 | ||
Dornoch Debt Merger Sub Inc., 6.625%, 10/15/2029 (n) | 650,000 | 641,875 | ||
Ford Motor Co., 5.113%, 5/03/2029 | 720,000 | 818,100 | ||
Ford Motor Co., 4.75%, 1/15/2043 | 805,000 | 888,519 | ||
Ford Motor Credit Co. LLC, 4.134%, 8/04/2025 | 650,000 | 689,812 | ||
IAA Spinco, Inc., 5.5%, 6/15/2027 (n) | 1,070,000 | 1,108,787 | ||
Panther BR Aggregator 2 LP/Panther Finance Co., Inc., 8.5%, 5/15/2027 (n) | 1,520,000 | 1,611,200 | ||
Real Hero Merger Sub 2, Inc., 6.25%, 2/01/2029 (n) | 700,000 | 698,908 | ||
Wheel Pros, Inc., 6.5%, 5/15/2029 (n) | 645,000 | 619,200 | ||
$8,480,542 | ||||
Broadcasting – 3.1% | ||||
Advantage Sales & Marketing, Inc., 6.5%, 11/15/2028 (n) | $ | 980,000 | $ 1,026,550 | |
Gray Escrow II, Inc., 5.375%, 11/15/2031 (n) | 1,595,000 | 1,640,856 | ||
iHeartCommunications, Inc., 8.375%, 5/01/2027 | 935,000 | 985,808 | ||
Nexstar Escrow Corp., 5.625%, 7/15/2027 (n) | 605,000 | 637,743 | ||
Scripps Escrow II, Inc., 5.875%, 7/15/2027 (n) | 1,105,000 | 1,160,872 | ||
Summer (BC) Bidco B LLC, 5.5%, 10/31/2026 (n) | 810,000 | 829,213 | ||
Summer (BC) Holdco S.à r.l., “A”, 9.25%, 10/31/2027 | EUR | 297,347 | 364,737 | |
Univision Communications, Inc., 4.5%, 5/01/2029 (n) | $ | 1,875,000 | 1,893,750 | |
WMG Acquisition Corp., 3.875%, 7/15/2030 (n) | 1,765,000 | 1,793,681 | ||
$10,333,210 | ||||
Brokerage & Asset Managers – 1.3% | ||||
Aretec Escrow Issuer, Inc., 7.5%, 4/01/2029 (n) | $ | 640,000 | $ 654,950 | |
LPL Holdings, Inc., 4.625%, 11/15/2027 (n) | 1,375,000 | 1,423,125 | ||
LPL Holdings, Inc., 4%, 3/15/2029 (n) | 1,037,000 | 1,061,629 | ||
NFP Corp., 4.875%, 8/15/2028 (n) | 815,000 | 823,150 | ||
NFP Corp., 6.875%, 8/15/2028 (n) | 325,000 | 325,839 | ||
$4,288,693 | ||||
Building – 3.4% | ||||
ABC Supply Co., Inc., 4%, 1/15/2028 (n) | $ | 2,145,000 | $ 2,194,828 | |
GYP Holding III Corp., 4.625%, 5/01/2029 (n) | 1,265,000 | 1,268,162 | ||
Interface, Inc., 5.5%, 12/01/2028 (n) | 1,095,000 | 1,147,013 | ||
New Enterprise Stone & Lime Co., Inc., 5.25%, 7/15/2028 (n) | 490,000 | 496,860 | ||
New Enterprise Stone & Lime Co., Inc., 9.75%, 7/15/2028 (n) | 649,000 | 694,430 | ||
Park River Holdings, Inc., 5.625%, 2/01/2029 (n) | 720,000 | 687,600 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Building – continued | ||||
Patrick Industries, Inc., 7.5%, 10/15/2027 (n) | $ | 1,045,000 | $ 1,112,925 | |
SRM Escrow Issuer LLC, 6%, 11/01/2028 (n) | 1,020,000 | 1,088,901 | ||
SRS Distribution, Inc., 6.125%, 7/01/2029 (n) | 765,000 | 779,627 | ||
Standard Industries, Inc., 4.375%, 7/15/2030 (n) | 1,062,000 | 1,083,776 | ||
Standard Industries, Inc., 3.375%, 1/15/2031 (n) | 240,000 | 231,190 | ||
White Cap Buyer LLC, 6.875%, 10/15/2028 (n) | 755,000 | 787,088 | ||
$11,572,400 | ||||
Business Services – 2.2% | ||||
Austin BidCo, Inc., 7.125%, 12/15/2028 (n) | $ | 610,000 | $ 629,825 | |
HealthEquity, Inc., 4.5%, 10/01/2029 (n) | 980,000 | 970,200 | ||
Iron Mountain, Inc., 5.25%, 3/15/2028 (n) | 515,000 | 535,600 | ||
Iron Mountain, Inc., REIT, 4.875%, 9/15/2027 (n) | 955,000 | 990,316 | ||
Nielsen Finance LLC, 4.5%, 7/15/2029 (n) | 1,060,000 | 1,042,764 | ||
Paysafe Finance PLC, 4%, 6/15/2029 (z) | 985,000 | 913,588 | ||
Switch Ltd., 3.75%, 9/15/2028 (n) | 1,244,000 | 1,253,330 | ||
Switch Ltd., 4.125%, 6/15/2029 (n) | 360,000 | 368,100 | ||
Verscend Escrow Corp., 9.75%, 8/15/2026 (n) | 770,000 | 818,464 | ||
$7,522,187 | ||||
Cable TV – 7.7% | ||||
CCO Holdings LLC/CCO Holdings Capital Corp., 4.75%, 3/01/2030 (n) | $ | 2,590,000 | $ 2,693,600 | |
CCO Holdings LLC/CCO Holdings Capital Corp., 4.5%, 8/15/2030 (n) | 1,010,000 | 1,033,422 | ||
CCO Holdings LLC/CCO Holdings Capital Corp., 4.25%, 2/01/2031 (n) | 1,395,000 | 1,407,248 | ||
CCO Holdings LLC/CCO Holdings Capital Corp., 4.25%, 1/15/2034 (n) | 760,000 | 747,709 | ||
CSC Holdings LLC, 5.375%, 2/01/2028 (n) | 450,000 | 465,917 | ||
CSC Holdings LLC, 5.75%, 1/15/2030 (n) | 1,595,000 | 1,589,019 | ||
CSC Holdings LLC, 4.125%, 12/01/2030 (n) | 1,605,000 | 1,566,881 | ||
DISH DBS Corp., 7.75%, 7/01/2026 | 415,000 | 437,825 | ||
DISH DBS Corp., 5.25%, 12/01/2026 (n) | 800,000 | 812,628 | ||
DISH DBS Corp., 5.125%, 6/01/2029 | 675,000 | 614,250 | ||
Intelsat Jackson Holdings S.A., 5.5%, 8/01/2023 (a)(d) | 695,000 | 314,710 | ||
Intelsat Jackson Holdings S.A., 9.75%, 7/15/2025 (a)(d)(n) | 440,000 | 201,991 | ||
LCPR Senior Secured Financing DAC, 6.75%, 10/15/2027 (n) | 882,000 | 926,100 | ||
LCPR Senior Secured Financing DAC, 5.125%, 7/15/2029 (n) | 325,000 | 326,625 | ||
Sirius XM Holdings, Inc., 3.875%, 9/01/2031 (n) | 1,195,000 | 1,171,638 | ||
Sirius XM Radio, Inc., 4%, 7/15/2028 (n) | 1,153,000 | 1,159,445 | ||
Sirius XM Radio, Inc., 5.5%, 7/01/2029 (n) | 2,055,000 | 2,214,262 | ||
Telenet Finance Luxembourg S.A., 5.5%, 3/01/2028 (n) | 1,600,000 | 1,648,000 | ||
Videotron Ltd., 5.375%, 6/15/2024 (n) | 190,000 | 203,300 | ||
Videotron Ltd., 5.125%, 4/15/2027 (n) | 2,020,000 | 2,080,600 | ||
Virgin Media Finance PLC, 5%, 7/15/2030 (n) | 1,200,000 | 1,194,000 | ||
Virgin Media Vendor Financing Notes IV DAC, 5%, 7/15/2028 (n) | 1,465,000 | 1,476,053 | ||
Ziggo Bond Finance B.V., 5.125%, 2/28/2030 (n) | 1,715,000 | 1,723,575 | ||
$26,008,798 | ||||
Chemicals – 2.4% | ||||
Axalta Coating Systems Ltd., 4.75%, 6/15/2027 (n) | $ | 834,000 | $ 869,445 | |
Axalta Coating Systems Ltd., 3.375%, 2/15/2029 (n) | 1,180,000 | 1,141,650 | ||
Consolidated Energy Finance S.A., 5.625%, 10/15/2028 (n) | 1,003,000 | 980,433 | ||
Element Solutions, Inc., 3.875%, 9/01/2028 (n) | 1,137,000 | 1,142,685 | ||
Herens Holdco S.à r.l., 4.75%, 5/15/2028 (n) | 890,000 | 872,200 | ||
Ingevity Corp., 3.875%, 11/01/2028 (n) | 1,230,000 | 1,197,712 | ||
LSF11 A5 HoldCo LLC, 6.625%, 10/15/2029 (n) | 650,000 | 640,250 | ||
S.P.C.M. S.A., 3.125%, 3/15/2027 (n) | 300,000 | 296,454 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Chemicals – continued | ||||
S.P.C.M. S.A., 3.375%, 3/15/2030 (n) | $ | 1,051,000 | $ 1,011,587 | |
$8,152,416 | ||||
Computer Software – 1.2% | ||||
Camelot Finance S.A., 4.5%, 11/01/2026 (n) | $ | 855,000 | $ 884,925 | |
Clarivate Science Holdings Corp., 4.875%, 7/01/2029 (n) | 1,145,000 | 1,161,167 | ||
Dun & Bradstreet Corp., 5%, 12/15/2029 (n) | 650,000 | 664,970 | ||
PTC, Inc., 3.625%, 2/15/2025 (n) | 920,000 | 932,650 | ||
PTC, Inc., 4%, 2/15/2028 (n) | 440,000 | 447,700 | ||
$4,091,412 | ||||
Computer Software - Systems – 1.4% | ||||
Fair Isaac Corp., 5.25%, 5/15/2026 (n) | $ | 1,765,000 | $ 1,939,973 | |
Fair Isaac Corp., 4%, 6/15/2028 (n) | 250,000 | 256,982 | ||
SS&C Technologies Holdings, Inc., 5.5%, 9/30/2027 (n) | 1,280,000 | 1,337,600 | ||
Viavi Solutions, Inc., 3.75%, 10/01/2029 (n) | 1,225,000 | 1,224,939 | ||
$4,759,494 | ||||
Conglomerates – 3.2% | ||||
Amsted Industries Co., 5.625%, 7/01/2027 (n) | $ | 1,335,000 | $ 1,388,400 | |
BWX Technologies, Inc., 4.125%, 6/30/2028 (n) | 338,000 | 343,070 | ||
BWX Technologies, Inc., 4.125%, 4/15/2029 (n) | 1,555,000 | 1,574,437 | ||
EnerSys, 4.375%, 12/15/2027 (n) | 495,000 | 513,563 | ||
Gates Global LLC, 6.25%, 1/15/2026 (n) | 840,000 | 867,300 | ||
Granite Holdings U.S. Acquisition Co., 11%, 10/01/2027 (n) | 715,000 | 777,563 | ||
Griffon Corp., 5.75%, 3/01/2028 | 1,195,000 | 1,241,402 | ||
Madison IAQ LLC, 5.875%, 6/30/2029 (n) | 820,000 | 820,000 | ||
Stevens Holding Co., Inc., 6.125%, 10/01/2026 (n) | 1,030,000 | 1,098,237 | ||
TriMas Corp., 4.125%, 4/15/2029 (n) | 2,236,000 | 2,241,590 | ||
$10,865,562 | ||||
Construction – 1.6% | ||||
Empire Communities Corp., 7%, 12/15/2025 (n) | $ | 760,000 | $ 786,600 | |
Mattamy Group Corp., 5.25%, 12/15/2027 (n) | 510,000 | 536,393 | ||
Mattamy Group Corp., 4.625%, 3/01/2030 (n) | 680,000 | 692,546 | ||
Shea Homes LP/Shea Homes Funding Corp., 4.75%, 2/15/2028 (n) | 1,245,000 | 1,273,012 | ||
Taylor Morrison Communities, Inc., 5.75%, 1/15/2028 (n) | 565,000 | 631,387 | ||
Taylor Morrison Communities, Inc., 5.125%, 8/01/2030 (n) | 550,000 | 605,000 | ||
Weekley Homes LLC/Weekley Finance Corp., 4.875%, 9/15/2028 (n) | 938,000 | 966,140 | ||
$5,491,078 | ||||
Consumer Products – 1.1% | ||||
Mattel, Inc., 3.375%, 4/01/2026 (n) | $ | 783,000 | $ 802,982 | |
Mattel, Inc., 5.875%, 12/15/2027 (n) | 546,000 | 586,928 | ||
Mattel, Inc., 5.45%, 11/01/2041 | 315,000 | 376,031 | ||
Prestige Consumer Healthcare, Inc., 5.125%, 1/15/2028 (n) | 845,000 | 879,857 | ||
Prestige Consumer Healthcare, Inc., 3.75%, 4/01/2031 (n) | 420,000 | 407,400 | ||
SWF Escrow Issuer Corp., 6.5%, 10/01/2029 (n) | 815,000 | 783,382 | ||
$3,836,580 | ||||
Consumer Services – 3.8% | ||||
Allied Universal Holdco LLC, 6.625%, 7/15/2026 (n) | $ | 320,000 | $ 335,744 | |
Allied Universal Holdco LLC, 9.75%, 7/15/2027 (n) | 970,000 | 1,036,372 | ||
Allied Universal Holdco LLC, 6%, 6/01/2029 (n) | 465,000 | 452,213 | ||
ANGI Group LLC, 3.875%, 8/15/2028 (n) | 1,130,000 | 1,104,575 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Consumer Services – continued | ||||
Arches Buyer, Inc., 6.125%, 12/01/2028 (n) | $ | 935,000 | $ 940,839 | |
Garda World Security Corp., 4.625%, 2/15/2027 (n) | 350,000 | 348,250 | ||
GoDaddy, Inc., 3.5%, 3/01/2029 (n) | 1,728,000 | 1,714,772 | ||
GW B-CR Security Corp., 9.5%, 11/01/2027 (n) | 728,000 | 784,919 | ||
Match Group Holdings II LLC, 3.625%, 10/01/2031 (n) | 80,000 | 77,700 | ||
Match Group, Inc., 5%, 12/15/2027 (n) | 815,000 | 847,600 | ||
Match Group, Inc., 4.625%, 6/01/2028 (n) | 1,240,000 | 1,290,096 | ||
Match Group, Inc., 4.125%, 8/01/2030 (n) | 365,000 | 368,650 | ||
Realogy Group LLC, 9.375%, 4/01/2027 (n) | 750,000 | 810,000 | ||
Realogy Group LLC, 5.75%, 1/15/2029 (n) | 490,000 | 502,250 | ||
TriNet Group, Inc., 3.5%, 3/01/2029 (n) | 1,374,000 | 1,368,847 | ||
WASH Multifamily Acquisition, Inc., 5.75%, 4/15/2026 (n) | 630,000 | 662,099 | ||
$12,644,926 | ||||
Containers – 2.3% | ||||
ARD Finance S.A., 6.5%, (6.5% cash or 7.25% PIK) 6/30/2027 (n)(p) | $ | 610,000 | $ 628,300 | |
Ardagh Metal Packaging, 3.25%, 9/01/2028 (n) | 550,000 | 543,826 | ||
Ardagh Metal Packaging, 4%, 9/01/2029 (n) | 950,000 | 941,213 | ||
Ardagh Packaging Finance PLC/Ardagh MP Holdings USA, Inc., 5.25%, 8/15/2027 (n) | 1,105,000 | 1,111,906 | ||
Can-Pack S.A., 3.875%, 11/15/2029 (n) | 1,428,000 | 1,394,085 | ||
Crown Americas LLC/Crown Americas Capital Corp. V, 4.25%, 9/30/2026 | 1,510,000 | 1,611,925 | ||
Crown Americas LLC/Crown Americas Capital Corp. VI, 4.75%, 2/01/2026 | 485,000 | 497,125 | ||
Greif, Inc., 6.5%, 3/01/2027 (n) | 890,000 | 923,375 | ||
$7,651,755 | ||||
Electrical Equipment – 0.4% | ||||
CommScope Technologies LLC, 5%, 3/15/2027 (n) | $ | 1,510,000 | $ 1,411,850 | |
Electronics – 1.9% | ||||
Diebold Nixdorf, Inc., 8.5%, 4/15/2024 | $ | 365,000 | $ 365,000 | |
Diebold Nixdorf, Inc., 9.375%, 7/15/2025 (n) | 570,000 | 613,742 | ||
Entegris, Inc., 4.375%, 4/15/2028 (n) | 390,000 | 400,725 | ||
Entegris, Inc., 3.625%, 5/01/2029 (n) | 825,000 | 827,062 | ||
Sensata Technologies B.V., 5.625%, 11/01/2024 (n) | 745,000 | 818,979 | ||
Sensata Technologies B.V., 5%, 10/01/2025 (n) | 1,280,000 | 1,388,800 | ||
Sensata Technologies, Inc., 4.375%, 2/15/2030 (n) | 675,000 | 708,750 | ||
Synaptics, Inc., 4%, 6/15/2029 (n) | 1,140,000 | 1,157,100 | ||
$6,280,158 | ||||
Energy - Independent – 3.8% | ||||
Apache Corp., 5.35%, 7/01/2049 | $ | 155,000 | $ 177,088 | |
Ascent Resources Utica Holdings LLC/ARU Finance Corp., 7%, 11/01/2026 (n) | 365,000 | 370,019 | ||
Callon Petroleum Co., 6.125%, 10/01/2024 | 485,000 | 477,725 | ||
Callon Petroleum Co., 8%, 8/01/2028 (n) | 415,000 | 419,150 | ||
CNX Resources Corp., 6%, 1/15/2029 (n) | 1,140,000 | 1,185,600 | ||
Comstock Resources, Inc., 6.75%, 3/01/2029 (n) | 790,000 | 856,834 | ||
CrownRock LP/CrownRock Finance, Inc., “F”, 5%, 5/01/2029 (n) | 405,000 | 420,188 | ||
Encino Acquisition Partners Holdings LLC, 8.5%, 5/01/2028 (n) | 550,000 | 571,312 | ||
EQT Corp., 3.125%, 5/15/2026 (n) | 165,000 | 169,377 | ||
EQT Corp., 5%, 1/15/2029 | 855,000 | 946,912 | ||
Occidental Petroleum Corp., 5.875%, 9/01/2025 | 745,000 | 821,362 | ||
Occidental Petroleum Corp., 5.5%, 12/01/2025 | 845,000 | 937,418 | ||
Occidental Petroleum Corp., 6.625%, 9/01/2030 | 820,000 | 1,014,750 | ||
Occidental Petroleum Corp., 6.45%, 9/15/2036 | 410,000 | 522,752 | ||
Occidental Petroleum Corp., 6.6%, 3/15/2046 | 600,000 | 778,500 | ||
Range Resources Corp., 8.25%, 1/15/2029 | 615,000 | 685,725 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Energy - Independent – continued | ||||
SM Energy Co., 5.625%, 6/01/2025 | $ | 505,000 | $ 508,788 | |
SM Energy Co., 6.5%, 7/15/2028 | 370,000 | 382,950 | ||
Southwestern Energy Co., 6.45%, 1/23/2025 | 65,400 | 71,875 | ||
Southwestern Energy Co., 8.375%, 9/15/2028 | 455,000 | 507,894 | ||
Southwestern Energy Co., 5.375%, 3/15/2030 | 665,000 | 712,534 | ||
Southwestern Energy Co., 4.75%, 2/01/2032 | 325,000 | 342,259 | ||
$12,881,012 | ||||
Entertainment – 3.5% | ||||
AMC Entertainment Holdings, Inc., 10%, (10% cash or 12% PIK) 6/15/2026 (n)(p) | $ | 330,000 | $ 326,058 | |
Boyne USA, Inc., 4.75%, 5/15/2029 (n) | 1,175,000 | 1,210,250 | ||
Carnival Corp. PLC, 7.625%, 3/01/2026 (n) | 1,770,000 | 1,855,402 | ||
Carnival Corp. PLC, 5.75%, 3/01/2027 (n) | 790,000 | 790,000 | ||
Carnival Corp. PLC, 6%, 5/01/2029 (n) | 245,000 | 243,775 | ||
Cedar Fair LP/Canada's Wonderland Co./Magnum Management Corp./Millennium Operations LLC, 5.375%, 4/15/2027 | 570,000 | 584,250 | ||
Live Nation Entertainment, Inc., 5.625%, 3/15/2026 (n) | 1,168,000 | 1,205,960 | ||
Live Nation Entertainment, Inc., 3.75%, 1/15/2028 (n) | 535,000 | 530,987 | ||
Motion Bondco DAC, 6.625%, 11/15/2027 (n) | 855,000 | 863,550 | ||
NCL Corp. Ltd., 3.625%, 12/15/2024 (n) | 545,000 | 514,344 | ||
NCL Corp. Ltd., 5.875%, 3/15/2026 (n) | 610,000 | 607,298 | ||
Royal Caribbean Cruises Ltd., 5.5%, 4/01/2028 (n) | 1,195,000 | 1,208,814 | ||
SeaWorld Parks & Entertainment, 5.25%, 8/15/2029 (n) | 1,265,000 | 1,288,093 | ||
Viking Cruises Ltd. Co., 5.875%, 9/15/2027 (n) | 490,000 | 466,578 | ||
$11,695,359 | ||||
Financial Institutions – 2.9% | ||||
Avation Capital S.A., 8.25%, (8.25% cash or 9% PIK) 10/31/2026 (n)(p) | $ | 645,169 | $ 541,942 | |
Credit Acceptance Corp., 5.125%, 12/31/2024 (n) | 1,180,000 | 1,209,500 | ||
Freedom Mortgage Corp., 7.625%, 5/01/2026 (n) | 1,000,000 | 1,021,260 | ||
Global Aircraft Leasing Co. Ltd., 6.5% (6.5% cash or 7.25% PIK), 9/15/2024 (n)(p) | 2,353,878 | 2,271,492 | ||
Howard Hughes Corp., 4.125%, 2/01/2029 (n) | 1,390,000 | 1,408,556 | ||
Nationstar Mortgage Holdings, Inc., 6%, 1/15/2027 (n) | 1,055,000 | 1,098,994 | ||
Nationstar Mortgage Holdings, Inc., 5.75%, 11/15/2031 (n) | 405,000 | 402,975 | ||
OneMain Finance Corp., 6.875%, 3/15/2025 | 555,000 | 617,438 | ||
OneMain Finance Corp., 8.875%, 6/01/2025 | 509,000 | 544,630 | ||
OneMain Finance Corp., 7.125%, 3/15/2026 | 475,000 | 541,500 | ||
$9,658,287 | ||||
Food & Beverages – 3.0% | ||||
Aramark Services, Inc., 6.375%, 5/01/2025 (n) | $ | 1,440,000 | $ 1,504,800 | |
JBS USA Lux S.A./JBS USA Finance, Inc., 6.75%, 2/15/2028 (n) | 1,750,000 | 1,887,830 | ||
Lamb Weston Holdings, Inc., 4.125%, 1/31/2030 (n) | 1,915,000 | 1,965,154 | ||
Performance Food Group Co., 5.5%, 10/15/2027 (n) | 1,110,000 | 1,158,562 | ||
Post Holdings, Inc., 5.625%, 1/15/2028 (n) | 805,000 | 853,091 | ||
Post Holdings, Inc., 4.625%, 4/15/2030 (n) | 805,000 | 819,893 | ||
Primo Water Holding, Inc., 4.375%, 4/30/2029 (n) | 780,000 | 772,200 | ||
U.S. Foods Holding Corp., 4.75%, 2/15/2029 (n) | 1,205,000 | 1,224,581 | ||
$10,186,111 | ||||
Gaming & Lodging – 6.5% | ||||
Boyd Gaming Corp., 4.75%, 12/01/2027 | $ | 1,000,000 | $ 1,020,000 | |
Boyd Gaming Corp., 4.75%, 6/15/2031 (n) | 405,000 | 413,100 | ||
Caesars Entertainment, Inc., 4.625%, 10/15/2029 (n) | 815,000 | 815,000 | ||
CCM Merger, Inc., 6.375%, 5/01/2026 (n) | 880,000 | 916,300 | ||
Colt Merger Sub, Inc., 5.75%, 7/01/2025 (n) | 695,000 | 725,799 | ||
Colt Merger Sub, Inc., 8.125%, 7/01/2027 (n) | 857,000 | 949,076 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Gaming & Lodging – continued | ||||
Hilton Domestic Operating Co., Inc., 3.75%, 5/01/2029 (n) | $ | 1,125,000 | $ 1,133,437 | |
Hilton Domestic Operating Co., Inc., 3.625%, 2/15/2032 (n) | 1,045,000 | 1,039,503 | ||
International Game Technology PLC, 4.125%, 4/15/2026 (n) | 1,305,000 | 1,344,241 | ||
International Game Technology PLC, 6.25%, 1/15/2027 (n) | 330,000 | 369,600 | ||
Marriott Ownership Resorts, Inc., 4.5%, 6/15/2029 (n) | 985,000 | 991,422 | ||
MGM China Holdings Ltd., 5.875%, 5/15/2026 (n) | 535,000 | 536,338 | ||
MGM China Holdings Ltd., 4.75%, 2/01/2027 (n) | 354,000 | 350,644 | ||
MGM Growth Properties LLC, 4.625%, 6/15/2025 (n) | 1,070,000 | 1,140,716 | ||
MGM Growth Properties LLC, 5.75%, 2/01/2027 | 415,000 | 468,950 | ||
MGM Growth Properties LLC, 3.875%, 2/15/2029 (n) | 708,000 | 743,400 | ||
Penn National Gaming, Inc., 4.125%, 7/01/2029 (n) | 765,000 | 742,050 | ||
Scientific Games Corp., 8.625%, 7/01/2025 (n) | 250,000 | 266,875 | ||
Scientific Games Corp., 8.25%, 3/15/2026 (n) | 615,000 | 647,288 | ||
Scientific Games International, Inc., 7%, 5/15/2028 (n) | 645,000 | 686,925 | ||
VICI Properties LP, REIT, 4.25%, 12/01/2026 (n) | 595,000 | 619,675 | ||
VICI Properties LP, REIT, 3.75%, 2/15/2027 (n) | 1,135,000 | 1,172,279 | ||
Wyndham Hotels & Resorts, Inc., 4.375%, 8/15/2028 (n) | 1,495,000 | 1,539,850 | ||
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 5.25%, 5/15/2027 (n) | 660,000 | 674,731 | ||
Wynn Macau Ltd., 4.875%, 10/01/2024 (n) | 280,000 | 263,200 | ||
Wynn Macau Ltd., 5.5%, 1/15/2026 (n) | 575,000 | 540,500 | ||
Wynn Macau Ltd., 5.625%, 8/26/2028 (n) | 1,028,000 | 951,913 | ||
Wynn Resorts Finance LLC/Wynn Resorts Capital Corp., 5.125%, 10/01/2029 (n) | 815,000 | 827,225 | ||
$21,890,037 | ||||
Industrial – 1.1% | ||||
Albion Financing 2 S.a.r.l., 8.75%, 4/15/2027 (n) | $ | 340,000 | $ 345,610 | |
APi Escrow Corp., 4.75%, 10/15/2029 (n) | 895,000 | 912,900 | ||
Dycom Industries, Inc., 4.5%, 4/15/2029 (n) | 1,140,000 | 1,161,375 | ||
Williams Scotsman International, Inc., 4.625%, 8/15/2028 (n) | 1,178,000 | 1,216,285 | ||
$3,636,170 | ||||
Insurance - Property & Casualty – 1.0% | ||||
Alliant Holdings Intermediate LLC, 6.75%, 10/15/2027 (n) | $ | 1,515,000 | $ 1,571,812 | |
AssuredPartners, Inc., 5.625%, 1/15/2029 (n) | 665,000 | 646,713 | ||
GTCR (AP) Finance, Inc., 8%, 5/15/2027 (n) | 320,000 | 332,000 | ||
Hub International Ltd., 5.625%, 12/01/2029 (n) | 935,000 | 963,256 | ||
$3,513,781 | ||||
Machinery & Tools – 0.4% | ||||
Ritchie Bros. Holdings Ltd., 4.75%, 12/15/2031 (n) | $ | 405,000 | $ 422,719 | |
Terex Corp., 5%, 5/15/2029 (n) | 985,000 | 1,012,087 | ||
$1,434,806 | ||||
Medical & Health Technology & Services – 6.3% | ||||
180 Medical, Inc., 3.875%, 10/15/2029 (n) | $ | 1,120,000 | $ 1,134,000 | |
Avantor Funding, Inc., 4.625%, 7/15/2028 (n) | 1,314,000 | 1,369,845 | ||
BCPE Cycle Merger Sub II, Inc., 10.625%, 7/15/2027 (n) | 715,000 | 725,725 | ||
Catalent, Inc., 3.125%, 2/15/2029 (n) | 1,810,000 | 1,785,384 | ||
Charles River Laboratories International, Inc., 3.75%, 3/15/2029 (n) | 2,182,000 | 2,203,820 | ||
CHS/Community Health Systems, Inc., 8%, 12/15/2027 (n) | 565,000 | 610,200 | ||
CHS/Community Health Systems, Inc., 6.125%, 4/01/2030 (n) | 1,410,000 | 1,394,941 | ||
DaVita, Inc., 4.625%, 6/01/2030 (n) | 765,000 | 783,169 | ||
DaVita, Inc., 3.75%, 2/15/2031 (n) | 624,000 | 607,982 | ||
Encompass Health Corp., 5.75%, 9/15/2025 | 515,000 | 526,588 | ||
HCA, Inc., 5.875%, 2/15/2026 | 1,345,000 | 1,516,999 | ||
HealthSouth Corp., 5.125%, 3/15/2023 | 337,000 | 337,000 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Medical & Health Technology & Services – continued | ||||
IQVIA Holdings, Inc., 5%, 10/15/2026 (n) | $ | 1,200,000 | $ 1,231,500 | |
IQVIA Holdings, Inc., 5%, 5/15/2027 (n) | 1,510,000 | 1,563,303 | ||
LifePoint Health, Inc., 4.375%, 2/15/2027 (n) | 380,000 | 382,850 | ||
MPH Acquisition Holdings LLC, 5.5%, 9/01/2028 (n) | 615,000 | 623,456 | ||
Regional Care/LifePoint Health, Inc., 9.75%, 12/01/2026 (n) | 675,000 | 713,273 | ||
Syneos Health, Inc., 3.625%, 1/15/2029 (n) | 1,471,000 | 1,452,612 | ||
Tenet Healthcare Corp., 6.125%, 10/01/2028 (n) | 1,295,000 | 1,367,792 | ||
US Acute Care Solutions LLC, 6.375%, 3/01/2026 (n) | 715,000 | 748,962 | ||
$21,079,401 | ||||
Medical Equipment – 0.6% | ||||
Mozart Debt Merger Sub, Inc., 5.25%, 10/01/2029 (n) | $ | 815,000 | $ 826,117 | |
Teleflex, Inc., 4.625%, 11/15/2027 | 1,230,000 | 1,279,200 | ||
$2,105,317 | ||||
Metals & Mining – 3.9% | ||||
Baffinland Iron Mines Corp./Baffinland Iron Mines LP, 8.75%, 7/15/2026 (n) | $ | 1,140,000 | $ 1,185,600 | |
Coeur Mining, Inc., 5.125%, 2/15/2029 (n) | 1,155,000 | 1,058,500 | ||
Compass Minerals International, Inc., 6.75%, 12/01/2027 (n) | 985,000 | 1,042,948 | ||
Eldorado Gold Corp., 6.25%, 9/01/2029 (n) | 900,000 | 915,192 | ||
First Quantum Minerals Ltd., 6.875%, 3/01/2026 (n) | 470,000 | 488,212 | ||
First Quantum Minerals Ltd., 6.875%, 10/15/2027 (n) | 678,000 | 729,697 | ||
FMG Resources Ltd., 4.375%, 4/01/2031 (n) | 1,190,000 | 1,249,500 | ||
Freeport-McMoRan, Inc., 4.375%, 8/01/2028 | 550,000 | 576,812 | ||
Freeport-McMoRan, Inc., 5.25%, 9/01/2029 | 810,000 | 886,950 | ||
GrafTech Finance, Inc., 4.625%, 12/15/2028 (n) | 736,000 | 747,040 | ||
Kaiser Aluminum Corp., 4.625%, 3/01/2028 (n) | 1,505,000 | 1,520,050 | ||
Kaiser Aluminum Corp., 4.5%, 6/01/2031 (n) | 645,000 | 634,519 | ||
Novelis Corp., 3.25%, 11/15/2026 (n) | 406,000 | 409,553 | ||
Novelis Corp., 4.75%, 1/30/2030 (n) | 950,000 | 998,687 | ||
Novelis Corp., 3.875%, 8/15/2031 (n) | 488,000 | 484,950 | ||
Petra Diamonds US$ Treasury PLC, 10.5%, (0% cash or 10.5% PIK) 3/08/2026 (n)(p) | 342,749 | 353,031 | ||
$13,281,241 | ||||
Midstream – 4.5% | ||||
Cheniere Energy Partners LP, 4.5%, 10/01/2029 | $ | 314,000 | $ 332,840 | |
Cheniere Energy Partners, L.P, 4%, 3/01/2031 | 1,385,000 | 1,452,796 | ||
DT Midstream, Inc., 4.125%, 6/15/2029 (n) | 771,000 | 789,311 | ||
DT Midstream, Inc., 4.375%, 6/15/2031 (n) | 1,296,000 | 1,347,840 | ||
EnLink Midstream Partners LP, 5.625%, 1/15/2028 (n) | 712,000 | 740,480 | ||
EQM Midstream Partners LP, 6%, 7/01/2025 (n) | 248,000 | 269,700 | ||
EQM Midstream Partners LP, 6.5%, 7/01/2027 (n) | 145,000 | 162,400 | ||
EQM Midstream Partners LP, 5.5%, 7/15/2028 | 1,810,000 | 1,977,434 | ||
EQM Midstream Partners LP, 4.5%, 1/15/2029 (n) | 480,000 | 499,200 | ||
Genesis Energy LP/Genesis Energy Finance Corp., 6.25%, 5/15/2026 | 405,500 | 395,363 | ||
Northriver Midstream Finance LP, 5.625%, 2/15/2026 (n) | 1,235,000 | 1,285,400 | ||
Targa Resources Partners LP/Targa Resources Finance Corp., 6.875%, 1/15/2029 | 1,385,000 | 1,549,510 | ||
Targa Resources Partners LP/Targa Resources Finance Corp., 4.875%, 2/01/2031 | 680,000 | 738,446 | ||
Targa Resources Partners LP/Targa Resources Finance Corp., 4%, 1/15/2032 (n) | 395,000 | 412,775 | ||
Venture Global Calcasieu Pass LLC, 3.875%, 8/15/2029 (n) | 720,000 | 747,000 | ||
Venture Global Calcasieu Pass LLC, 4.125%, 8/15/2031 (n) | 720,000 | 763,200 | ||
Western Midstream Operating LP, 5.3%, 2/01/2030 | 850,000 | 934,184 | ||
Western Midstream Operation LP, 4.65%, 7/01/2026 | 320,000 | 348,287 | ||
Western Midstream Operation LP, 5.5%, 8/15/2048 | 260,000 | 310,575 | ||
$15,056,741 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Municipals – 0.1% | ||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority Rev. (Cogeneration Facilities - AES Puerto Rico Project), 9.12%, 6/01/2022 | $ | 155,000 | $ 158,875 | |
Network & Telecom – 0.6% | ||||
Front Range BidCo, Inc., 6.125%, 3/01/2028 (n) | $ | 730,000 | $ 719,050 | |
Iliad Holding S.A.S., 7%, 10/15/2028 (n) | 1,117,000 | 1,174,604 | ||
$1,893,654 | ||||
Oil Services – 0.2% | ||||
Solaris Midstream Holding LLC, 7.625%, 4/01/2026 (n) | $ | 530,000 | $ 557,825 | |
Oils – 0.7% | ||||
Parkland Corp., 4.625%, 5/01/2030 (n) | $ | 1,290,000 | $ 1,281,937 | |
PBF Holding Co. LLC/PBF Finance Corp., 7.25%, 6/15/2025 | 655,000 | 466,687 | ||
PBF Holding Co. LLC/PBF Finance Corp., 6%, 2/15/2028 | 675,000 | 433,688 | ||
$2,182,312 | ||||
Personal Computers & Peripherals – 0.6% | ||||
NCR Corp., 5%, 10/01/2028 (n) | $ | 1,195,000 | $ 1,230,850 | |
NCR Corp., 5.125%, 4/15/2029 (n) | 590,000 | 610,768 | ||
$1,841,618 | ||||
Pharmaceuticals – 2.5% | ||||
Bausch Health Companies, Inc., 6.125%, 4/15/2025 (n) | $ | 1,849,000 | $ 1,883,317 | |
Bausch Health Companies, Inc., 5%, 1/30/2028 (n) | 1,775,000 | 1,633,000 | ||
Bausch Health Companies, Inc., 5%, 2/15/2029 (n) | 580,000 | 511,850 | ||
Endo Luxembourg Finance Co I S.à r.l., 6.125%, 4/01/2029 (n) | 550,000 | 539,000 | ||
Jazz Securities DAC, 4.375%, 1/15/2029 (n) | 1,450,000 | 1,501,388 | ||
Organon Finance 1 LLC, 4.125%, 4/30/2028 (n) | 781,000 | 793,691 | ||
Organon Finance 1 LLC, 5.125%, 4/30/2031 (n) | 1,026,000 | 1,071,842 | ||
Par Pharmaceutical, Inc., 7.5%, 4/01/2027 (n) | 575,000 | 587,610 | ||
$8,521,698 | ||||
Pollution Control – 0.8% | ||||
GFL Environmental, Inc., 4%, 8/01/2028 (n) | $ | 945,000 | $ 926,100 | |
GFL Environmental, Inc., 4.75%, 6/15/2029 (n) | 320,000 | 322,800 | ||
GFL Environmental, Inc., 4.375%, 8/15/2029 (n) | 410,000 | 406,156 | ||
Stericycle, Inc., 3.875%, 1/15/2029 (n) | 1,115,000 | 1,098,275 | ||
$2,753,331 | ||||
Precious Metals & Minerals – 0.4% | ||||
IAMGOLD Corp., 5.75%, 10/15/2028 (n) | $ | 845,000 | $ 830,212 | |
Taseko Mines Ltd., 7%, 2/15/2026 (n) | 635,000 | 660,400 | ||
$1,490,612 | ||||
Printing & Publishing – 0.4% | ||||
Cimpress N.V., 7%, 6/15/2026 (n) | $ | 1,255,000 | $ 1,303,631 | |
Railroad & Shipping – 0.3% | ||||
Watco Cos. LLC/Watco Finance Corp., 6.5%, 6/15/2027 (n) | $ | 993,000 | $ 1,032,720 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Real Estate - Other – 0.6% | ||||
InterMed Holdings Ltd., 5.875%, 10/01/2028 (n) | $ | 1,235,000 | $ 1,284,400 | |
XHR LP, REIT, 4.875%, 6/01/2029 (n) | 865,000 | 880,137 | ||
$2,164,537 | ||||
Retailers – 1.1% | ||||
Asbury Automotive Group, Inc., 4.625%, 11/15/2029 (n) | $ | 544,000 | $ 554,200 | |
Bath & Body Works, Inc., 5.25%, 2/01/2028 | 2,150,000 | 2,375,750 | ||
Victoria's Secret & Co., 4.625%, 7/15/2029 (n) | 900,000 | 920,250 | ||
$3,850,200 | ||||
Specialty Chemicals – 0.3% | ||||
Univar Solutions USA, Inc., 5.125%, 12/01/2027 (n) | $ | 955,000 | $ 996,514 | |
Specialty Stores – 1.2% | ||||
Group 1 Automotive, Inc., 4%, 8/15/2028 (n) | $ | 828,000 | $ 824,895 | |
Magic Mergeco, Inc., 5.25%, 5/01/2028 (n) | 550,000 | 550,242 | ||
Magic Mergeco, Inc., 7.875%, 5/01/2029 (n) | 655,000 | 645,175 | ||
Penske Automotive Group Co., 3.75%, 6/15/2029 | 1,257,000 | 1,246,001 | ||
PetSmart, Inc./PetSmart Finance Corp., 4.75%, 2/15/2028 (n) | 500,000 | 513,125 | ||
PetSmart, Inc./PetSmart Finance Corp., 7.75%, 2/15/2029 (n) | 350,000 | 380,188 | ||
$4,159,626 | ||||
Supermarkets – 0.6% | ||||
Albertsons Cos. LLC/Safeway, Inc., 4.625%, 1/15/2027 (n) | $ | 1,120,000 | $ 1,175,373 | |
Albertsons Cos. LLC/Safeway, Inc., 3.5%, 3/15/2029 (n) | 825,000 | 826,617 | ||
$2,001,990 | ||||
Telecommunications - Wireless – 2.3% | ||||
Altice France S.A., 6%, 2/15/2028 (n) | $ | 975,000 | $ 931,125 | |
SBA Communications Corp., 3.875%, 2/15/2027 | 654,000 | 673,620 | ||
SBA Communications Corp., 3.125%, 2/01/2029 (n) | 1,725,000 | 1,656,000 | ||
Sprint Capital Corp., 6.875%, 11/15/2028 | 1,365,000 | 1,726,725 | ||
Sprint Corp., 7.125%, 6/15/2024 | 410,000 | 460,288 | ||
Sprint Corp., 7.625%, 3/01/2026 | 1,775,000 | 2,131,065 | ||
$7,578,823 | ||||
Tobacco – 0.3% | ||||
Vector Group Ltd., 10.5%, 11/01/2026 (n) | $ | 545,000 | $ 564,756 | |
Vector Group Ltd., 5.75%, 2/01/2029 (n) | 540,000 | 525,453 | ||
$1,090,209 | ||||
Utilities - Electric Power – 2.8% | ||||
Calpine Corp., 4.5%, 2/15/2028 (n) | $ | 995,000 | $ 1,032,312 | |
Calpine Corp., 5.125%, 3/15/2028 (n) | 1,290,000 | 1,309,556 | ||
Clearway Energy Operating LLC, 4.75%, 3/15/2028 (n) | 615,000 | 646,519 | ||
Clearway Energy Operating LLC, 3.75%, 2/15/2031 (n) | 1,895,000 | 1,890,262 | ||
NextEra Energy, Inc., 4.25%, 7/15/2024 (n) | 638,000 | 662,723 | ||
NextEra Energy, Inc., 4.25%, 9/15/2024 (n) | 146,000 | 151,110 | ||
NextEra Energy, Inc., 4.5%, 9/15/2027 (n) | 805,000 | 869,400 | ||
TerraForm Global Operating LLC, 6.125%, 3/01/2026 (n) | 650,000 | 662,188 | ||
TerraForm Power Operating LLC, 5%, 1/31/2028 (n) | 1,450,000 | 1,535,840 | ||
TerraForm Power Operating LLC, 4.75%, 1/15/2030 (n) | 480,000 | 503,215 | ||
$9,263,125 | ||||
Total Bonds (Identified Cost, $317,541,721) | $ 320,199,712 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 0.2% | ||||
Construction – 0.1% | ||||
ICA Tenedora, S.A. de C.V. (a)(u) | 147,380 | $ 122,364 | ||
Oil Services – 0.1% | ||||
LTRI Holdings LP (a)(u) | 1,115 | $ 320,663 | ||
Precious Metals & Minerals – 0.0% | ||||
Petra Diamonds Ltd. (a) | 54,099 | $ 54,187 | ||
Total Common Stocks (Identified Cost, $449,277) | $ 497,214 | |||
Floating Rate Loans (r) – 0.0% | ||||
Chemicals – 0.0% | ||||
Axalta Coating Systems U.S. Holdings, Inc., Term Loan B3, 1.973%, 6/01/2024 (Identified Cost, $813) | $ | 812 | $ 813 |
Strike Price | First Exercise | |||
Warrants – 0.0% | ||||
Other Banks & Diversified Financials – 0.0% | ||||
Avation Capital S.A. Warrants (1 share for 1 warrant, Expiration 10/31/26) (a)(u) (Identified Cost, $0) | GBP 1.14 | 3/16/21 | 11,113 | $ 1,710 |
Investment Companies (h) – 3.3% | ||||
Money Market Funds – 3.3% | ||||
MFS Institutional Money Market Portfolio, 0.07% (v) (Identified Cost, $11,123,705) | 11,123,705 | $ 11,123,705 | ||
Other Assets, Less Liabilities – 1.5% | 5,066,661 | |||
Net Assets – 100.0% | $336,889,815 |
(a) | Non-income producing security. |
(d) | In default. |
(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 $11,123,705 and $320,699,449, 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 $270,825,581, representing 80.4% of net assets. |
(p) | Payment-in-kind (PIK) security for which interest income may be received in additional securities and/or cash. |
(r) | The remaining maturities of floating rate loans may be less than the stated maturities shown as a result of contractual or optional prepayments by the borrower. Such prepayments cannot be predicted with certainty. These loans may be subject to restrictions on resale. The interest rate shown represents the weighted average of the floating interest rates on settled contracts within the loan facility at period end, unless otherwise indicated. The floating interest rates on settled contracts are determined periodically by reference to a base lending rate and a spread. |
(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. |
(z) | Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. The fund holds the following restricted securities: |
Restricted Securities | Acquisition Date | Cost | Value |
Paysafe Finance PLC, 4%, 6/15/2029 | 6/10/2021 | $979,256 | $913,588 |
% of Net assets | 0.3% |
The following abbreviations are used in this report and are defined: | |
CDO | Collateralized Debt Obligation |
FLR | Floating Rate. Interest rate resets periodically based on the parenthetically disclosed reference rate plus a spread (if any). The period-end rate reported may not be the current rate. All reference rates are USD unless otherwise noted. |
LIBOR | London Interbank Offered Rate |
REIT | Real Estate Investment Trust |
Abbreviations indicate amounts shown in currencies other than the U.S. dollar. All amounts are stated in U.S. dollars unless otherwise indicated. A list of abbreviations is shown below: | |
EUR | Euro |
GBP | British Pound |
Derivative Contracts at 12/31/21 | ||||||
Forward Foreign Currency Exchange Contracts | ||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||
Asset Derivatives | ||||||
USD | 381,014 | EUR | 329,180 | JPMorgan Chase Bank N.A. | 1/14/2022 | $6,169 |
Futures Contracts | ||||||
Description | Long/ Short | Currency | Contracts | Notional Amount | Expiration Date | Value/Unrealized Appreciation (Depreciation) |
Asset Derivatives | ||||||
Interest Rate Futures | ||||||
U.S. Treasury Bond | Long | USD | 32 | $5,134,000 | March – 2022 | $75,353 |
U.S. Treasury Ultra Bond | Long | USD | 5 | 985,625 | March – 2022 | 24,981 |
$100,334 | ||||||
Liability Derivatives | ||||||
Interest Rate Futures | ||||||
U.S. Treasury Note 10 yr | Short | USD | 85 | $11,089,844 | March – 2022 | $(123,158) |
Financial Statements | Statement of Assets and Liabilities |
At 12/31/21Assets | |
Investments in unaffiliated issuers, at value (identified cost, $317,991,811) | $320,699,449 |
Investments in affiliated issuers, at value (identified cost, $11,123,705) | 11,123,705 |
Cash | 219,531 |
Deposits with brokers for | |
Futures contracts | 61,625 |
Receivables for | |
Forward foreign currency exchange contracts | 6,169 |
Net daily variation margin on open futures contracts | 20,508 |
Investments sold | 521,608 |
Fund shares sold | 18,114 |
Interest | 4,607,946 |
Receivable from investment adviser | 3,294 |
Other assets | 1,730 |
Total assets | $337,283,679 |
Liabilities | |
Payables for | |
Fund shares reacquired | $266,469 |
Payable to affiliates | |
Administrative services fee | 306 |
Shareholder servicing costs | 88 |
Distribution and/or service fees | 527 |
Payable for independent Trustees' compensation | 252 |
Accrued expenses and other liabilities | 126,222 |
Total liabilities | $393,864 |
Net assets | $336,889,815 |
Net assets consist of | |
Paid-in capital | $360,945,628 |
Total distributable earnings (loss) | (24,055,813) |
Net assets | $336,889,815 |
Shares of beneficial interest outstanding | 60,390,809 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $298,460,067 | 53,421,426 | $5.59 |
Service Class | 38,429,748 | 6,969,383 | 5.51 |
Financial Statements | Statement of Operations |
Year ended 12/31/21 | |
Net investment income (loss) | |
Income | |
Interest | $16,553,461 |
Dividends | 101,300 |
Other | 19,148 |
Dividends from affiliated issuers | 4,638 |
Income on securities loaned | 261 |
Foreign taxes withheld | (10,130) |
Total investment income | $16,668,678 |
Expenses | |
Management fee | $2,406,491 |
Distribution and/or service fees | 98,763 |
Shareholder servicing costs | 15,304 |
Administrative services fee | 55,548 |
Independent Trustees' compensation | 7,027 |
Custodian fee | 21,209 |
Shareholder communications | 44,844 |
Audit and tax fees | 82,437 |
Legal fees | 1,657 |
Miscellaneous | 37,464 |
Total expenses | $2,770,744 |
Reduction of expenses by investment adviser | (195,654) |
Net expenses | $2,575,090 |
Net investment income (loss) | $14,093,588 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $6,151,550 |
Affiliated issuers | (1,981) |
Futures contracts | (6,033) |
Forward foreign currency exchange contracts | 11,155 |
Foreign currency | (27) |
Net realized gain (loss) | $6,154,664 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $(8,792,269) |
Affiliated issuers | 1,982 |
Futures contracts | (22,824) |
Forward foreign currency exchange contracts | 6,169 |
Translation of assets and liabilities in foreign currencies | 12 |
Net unrealized gain (loss) | $(8,806,930) |
Net realized and unrealized gain (loss) | $(2,652,266) |
Change in net assets from operations | $11,441,322 |
Financial Statements | Statements of Changes in Net Assets |
Year ended | ||
12/31/21 | 12/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $14,093,588 | $15,210,983 |
Net realized gain (loss) | 6,154,664 | (2,471,599) |
Net unrealized gain (loss) | (8,806,930) | 2,203,310 |
Change in net assets from operations | $11,441,322 | $14,942,694 |
Total distributions to shareholders | $(16,802,373) | $(18,798,097) |
Change in net assets from fund share transactions | $(9,041,399) | $(13,092,189) |
Total change in net assets | $(14,402,450) | $(16,947,592) |
Net assets | ||
At beginning of period | 351,292,265 | 368,239,857 |
At end of period | $336,889,815 | $351,292,265 |
Financial Statements | Financial Highlights |
Initial Class | Year ended | ||||
12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $5.68 | $5.72 | $5.28 | $5.77 | $5.78 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.23 | $0.25 | $0.27 | $0.28 | $0.28 |
Net realized and unrealized gain (loss) | (0.03) | 0.03(g) | 0.50 | (0.45) | 0.10 |
Total from investment operations | $0.20 | $0.28 | $0.77 | $(0.17) | $0.38 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.29) | $(0.32) | $(0.33) | $(0.32) | $(0.39) |
Net asset value, end of period (x) | $5.59 | $5.68 | $5.72 | $5.28 | $5.77 |
Total return (%) (k)(r)(s)(x) | 3.49 | 5.09 | 14.81 | (3.08) | 6.69 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.78 | 0.78 | 0.77 | 0.77 | 0.78 |
Expenses after expense reductions | 0.72 | 0.72 | 0.72 | 0.72 | 0.72 |
Net investment income (loss) | 4.13 | 4.50 | 4.78 | 4.91 | 4.78 |
Portfolio turnover | 63 | 54 | 59 | 40 | 49 |
Net assets at end of period (000 omitted) | $298,460 | $310,121 | $324,544 | $320,380 | $384,393 |
Service Class | Year ended | ||||
12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $5.61 | $5.65 | $5.22 | $5.70 | $5.72 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.22 | $0.23 | $0.25 | $0.26 | $0.26 |
Net realized and unrealized gain (loss) | (0.05) | 0.03(g) | 0.49 | (0.43) | 0.10 |
Total from investment operations | $0.17 | $0.26 | $0.74 | $(0.17) | $0.36 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.27) | $(0.30) | $(0.31) | $(0.31) | $(0.38) |
Net asset value, end of period (x) | $5.51 | $5.61 | $5.65 | $5.22 | $5.70 |
Total return (%) (k)(r)(s)(x) | 3.08 | 4.85 | 14.44 | (3.24) | 6.31 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 1.03 | 1.03 | 1.02 | 1.02 | 1.03 |
Expenses after expense reductions | 0.97 | 0.97 | 0.97 | 0.97 | 0.97 |
Net investment income (loss) | 3.88 | 4.25 | 4.54 | 4.66 | 4.54 |
Portfolio turnover | 63 | 54 | 59 | 40 | 49 |
Net assets at end of period (000 omitted) | $38,430 | $41,171 | $43,696 | $44,995 | $58,499 |
(d) | Per share data is based on average shares outstanding. |
(g) | The per share amount varies from the net realized and unrealized gain/loss for the period because of the timing of sales of fund shares and the per share amount of realized and unrealized gains and losses at such time. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(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 | $— | $— | $320,663 | $320,663 |
Mexico | — | — | 122,364 | 122,364 |
United Kingdom | 54,187 | — | 1,710 | 55,897 |
Municipal Bonds | — | 158,875 | — | 158,875 |
U.S. Corporate Bonds | — | 276,231,397 | — | 276,231,397 |
Asset-Backed Securities (including CDOs) | — | 129 | — | 129 |
Foreign Bonds | — | 43,809,311 | — | 43,809,311 |
Floating Rate Loans | — | 813 | — | 813 |
Mutual Funds | 11,123,705 | — | — | 11,123,705 |
Total | $11,177,892 | $320,200,525 | $444,737 | $331,823,154 |
Other Financial Instruments | ||||
Futures Contracts – Assets | $100,334 | $— | $— | $100,334 |
Futures Contracts – Liabilities | (123,158) | — | — | (123,158) |
Forward Foreign Currency Exchange Contracts – Assets | — | 6,169 | — | 6,169 |
Equity Securities | |
Balance as of 12/31/20 | $315,010 |
Change in unrealized appreciation or depreciation | 5,653 |
Transfers into level 3 | 122,364 |
Received as part of a corporate action | 1,710 |
Balance as of 12/31/21 | $444,737 |
Fair Value (a) | |||
Risk | Derivative Contracts | Asset Derivatives | Liability Derivatives |
Interest Rate | Futures Contracts | $100,334 | $(123,158) |
Foreign Exchange | Forward Foreign Currency Exchange Contracts | 6,169 | — |
Total | $106,503 | $(123,158) |
Risk | Futures Contracts | Forward Foreign Currency Exchange Contracts |
Interest Rate | $(6,033) | $— |
Foreign Exchange | — | 11,155 |
Total | $(6,033) | $11,155 |
Risk | Futures Contracts | Forward Foreign Currency Exchange Contracts |
Interest Rate | $(22,824) | $— |
Foreign Exchange | — | 6,169 |
Total | $(22,824) | $6,169 |
Year ended 12/31/21 | Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $16,802,373 | $18,798,097 |
As of 12/31/21 | |
Cost of investments | $330,596,934 |
Gross appreciation | 4,950,628 |
Gross depreciation | (3,741,063) |
Net unrealized appreciation (depreciation) | $1,209,565 |
Undistributed ordinary income | 15,311,606 |
Capital loss carryforwards | (40,576,996) |
Other temporary differences | 12 |
Total distributable earnings (loss) | $(24,055,813) |
Long-Term | $(40,576,996) |
Year ended 12/31/21 | Year ended 12/31/20 | ||
Initial Class | $14,930,072 | $16,642,508 | |
Service Class | 1,872,301 | 2,155,589 | |
Total | $16,802,373 | $18,798,097 |
Up to $1 billion | 0.70% |
In excess of $1 billion | 0.65% |
Year ended 12/31/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 2,767,138 | $15,658,509 | 3,732,526 | $20,503,790 | |
Service Class | 492,471 | 2,759,659 | 890,297 | 4,876,990 | |
3,259,609 | $18,418,168 | 4,622,823 | $25,380,780 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | 2,666,936 | $14,828,166 | 3,048,078 | $16,642,508 | |
Service Class | 341,038 | 1,872,301 | 399,183 | 2,155,589 | |
3,007,974 | $16,700,467 | 3,447,261 | $18,798,097 | ||
Shares reacquired | |||||
Initial Class | (6,600,705) | $(37,426,650) | (8,904,252) | $(48,212,643) | |
Service Class | (1,202,510) | (6,733,384) | (1,679,808) | (9,058,423) | |
(7,803,215) | $(44,160,034) | (10,584,060) | $(57,271,066) |
Year ended 12/31/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Net change | |||||
Initial Class | (1,166,631) | $(6,939,975) | (2,123,648) | $(11,066,345) | |
Service Class | (369,001) | (2,101,424) | (390,328) | (2,025,844) | |
(1,535,632) | $(9,041,399) | (2,513,976) | $(13,092,189) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $15,433,544 | $91,266,183 | $95,576,023 | $(1,981) | $1,982 | $11,123,705 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $4,638 | $— |
February 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 | 135 | 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 | 135 | Private investor | N/A | |||||
Steven E. Buller (age 70) | Trustee | February 2014 | 135 | Private investor | N/A | |||||
John A. Caroselli (age 67) | Trustee | March 2017 | 135 | Private investor; JC Global Advisors, LLC (management consulting), President (since 2015) | N/A | |||||
Maureen R. Goldfarb (age 66) | Trustee | January 2009 | 135 | Private investor | N/A | |||||
Peter D. Jones (age 66) | Trustee | January 2019 | 135 | Private investor | N/A | |||||
James W. Kilman, Jr. (age 60) | Trustee | January 2019 | 135 | 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) | |||||
Clarence Otis, Jr. (age 65) | Trustee | March 2017 | 135 | Private investor | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director | |||||
Maryanne L. Roepke (age 65) | Trustee | May 2014 | 135 | Private investor | N/A | |||||
Laurie J. Thomsen (age 64) | Trustee | March 2005 | 135 | 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 | 135 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | ||||
Kino Clark (k) (age 53) | Assistant Treasurer | January 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
John W. Clark, Jr. (k) (age 54) | Assistant Treasurer | April 2017 | 135 | Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head - Treasurer's Office (until February 2017) | ||||
Thomas H. Connors (k) (age 62) | Assistant Secretary and Assistant Clerk | September 2012 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
David L. DiLorenzo (k) (age 53) | President | July 2005 | 135 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 54) | Secretary and Clerk | April 2017 | 135 | 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 48) | Assistant Secretary and Assistant Clerk | June 2006 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
Amanda S. Mooradian (k) (age 42) | Assistant Secretary and Assistant Clerk | September 2018 | 135 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 51) | Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Kasey L. Phillips (k) (age 51) | Assistant Treasurer | September 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 47) | Assistant Secretary and Assistant Clerk | October 2014 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Martin J. Wolin (k) (age 54) | Chief Compliance Officer | July 2015 | 135 | Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer | ||||
James O. Yost (k) (age 61) | Treasurer | September 1990 | 135 | 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 | Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 |
Portfolio Manager(s) | |
David Cole Michael Skatrud |
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. |
Growth Portfolio
1 | |
2 | |
3 | |
5 | |
7 | |
8 | |
12 | |
13 | |
14 | |
15 | |
17 | |
23 | |
24 | |
27 | |
30 | |
30 | |
30 | |
30 | |
30 | |
31 |
Nestle S.A. | 4.9% |
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 4.5% |
Roche Holding AG | 4.5% |
LVMH Moet Hennessy Louis Vuitton SE | 3.3% |
SAP SE | 3.2% |
Schneider Electric SE | 3.2% |
Hitachi Ltd. | 3.0% |
Linde PLC | 2.9% |
Diageo PLC | 2.9% |
EssilorLuxottica | 2.7% |
Industrials | 17.1% |
Consumer Staples | 16.4% |
Health Care | 12.8% |
Information Technology | 12.6% |
Consumer Discretionary | 11.9% |
Materials | 11.0% |
Financials | 9.7% |
Communication Services | 3.6% |
Energy | 1.5% |
Utilities | 0.8% |
France | 16.2% |
Switzerland | 13.4% |
United Kingdom | 9.2% |
Germany | 8.8% |
Japan | 8.3% |
Canada | 6.7% |
United States | 6.4% |
Taiwan | 5.9% |
China | 4.6% |
Other Countries | 20.5% |
Euro | 31.4% |
Swiss Franc | 13.4% |
British Pound Sterling | 10.2% |
Japanese Yen | 8.3% |
Hong Kong Dollar | 6.6% |
United States Dollar | 6.2% |
Taiwan Dollar | 5.9% |
Canadian Dollar | 5.0% |
Indian Rupee | 4.3% |
Other Currencies | 8.7% |
(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. |
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr |
Initial Class | 6/03/96 | 9.27% | 14.22% | 10.00% |
Service Class | 8/24/01 | 8.99% | 13.95% | 9.73% |
MSCI All Country World (ex-US) Growth Index (net div) (f) | 5.09% | 13.06% | 9.13% |
(f) | Source: FactSet Research Systems Inc. |
(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. |
July 1, 2021 through December 31, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 7/01/21 | Ending Account Value 12/31/21 | Expenses Paid During Period (p) 7/01/21-12/31/21 | |
Initial Class | Actual | 0.88% | $1,000.00 | $1,015.66 | $4.47 |
Hypothetical (h) | 0.88% | $1,000.00 | $1,020.77 | $4.48 | |
Service Class | Actual | 1.13% | $1,000.00 | $1,014.03 | $5.74 |
Hypothetical (h) | 1.13% | $1,000.00 | $1,019.51 | $5.75 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 97.4% | ||||
Aerospace & Defense – 0.9% | ||||
Rolls-Royce Holdings PLC (a) | 1,173,236 | $ 1,951,376 | ||
Alcoholic Beverages – 4.9% | ||||
Diageo PLC | 112,283 | $ 6,133,939 | ||
Pernod Ricard S.A. | 17,785 | 4,282,498 | ||
$10,416,437 | ||||
Apparel Manufacturers – 5.2% | ||||
Burberry Group PLC | 63,701 | $ 1,567,094 | ||
Kering S.A. | 2,924 | 2,353,251 | ||
LVMH Moet Hennessy Louis Vuitton SE | 8,522 | 7,053,567 | ||
$10,973,912 | ||||
Automotive – 0.5% | ||||
Koito Manufacturing Co. Ltd. | 22,100 | $ 1,170,034 | ||
Biotechnology – 0.1% | ||||
Hugel, Inc. | 1,923 | $ 248,312 | ||
Brokerage & Asset Managers – 1.3% | ||||
Deutsche Boerse AG | 11,876 | $ 1,988,913 | ||
London Stock Exchange Group | 9,284 | 870,848 | ||
$2,859,761 | ||||
Business Services – 2.7% | ||||
Cap Gemini S.A. | 8,815 | $ 2,162,731 | ||
Experian PLC | 73,757 | 3,625,963 | ||
$5,788,694 | ||||
Chemicals – 0.6% | ||||
UPL Ltd. | 138,685 | $ 1,393,834 | ||
Computer Software – 5.9% | ||||
Dassault Systemes SE | 23,881 | $ 1,422,231 | ||
Kingsoft Corp. | 161,800 | 710,691 | ||
NAVER Corp. (a) | 6,919 | 2,203,021 | ||
Oracle Corp. Japan | 12,700 | 964,949 | ||
SAP SE | 48,000 | 6,855,408 | ||
Wisetech Global Ltd. | 11,255 | 479,687 | ||
$12,635,987 | ||||
Computer Software - Systems – 4.1% | ||||
Amadeus IT Group S.A. (a) | 20,232 | $ 1,362,717 | ||
Hitachi Ltd. | 115,900 | 6,277,119 | ||
NICE Systems Ltd., ADR (a) | 3,251 | 987,004 | ||
$8,626,840 | ||||
Consumer Products – 4.4% | ||||
AmorePacific Corp. (a) | 7,906 | $ 1,110,664 | ||
Kao Corp. | 24,200 | 1,266,276 | ||
KOSE Corp. | 6,900 | 782,796 | ||
L'Oréal | 2,612 | 1,239,910 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Consumer Products – continued | ||||
Reckitt Benckiser Group PLC | 57,037 | $ 4,896,178 | ||
$9,295,824 | ||||
Electrical Equipment – 4.3% | ||||
Prysmian S.p.A. | 60,879 | $ 2,294,878 | ||
Schneider Electric SE | 34,694 | 6,812,016 | ||
$9,106,894 | ||||
Electronics – 5.9% | ||||
Delta Electronics, Inc. | 285,000 | $ 2,832,797 | ||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 80,276 | 9,658,006 | ||
$12,490,803 | ||||
Energy - Independent – 1.5% | ||||
Reliance Industries Ltd. | 71,605 | $ 2,281,158 | ||
Santos Ltd. | 179,431 | 823,739 | ||
$3,104,897 | ||||
Food & Beverages – 4.9% | ||||
Nestle S.A. | 74,386 | $ 10,403,591 | ||
Food & Drug Stores – 0.4% | ||||
Sugi Holdings Co. Ltd. | 14,800 | $ 896,775 | ||
Gaming & Lodging – 1.1% | ||||
Flutter Entertainment PLC (a) | 14,506 | $ 2,309,028 | ||
General Merchandise – 0.3% | ||||
Walmart de Mexico S.A.B. de C.V. | 193,337 | $ 718,469 | ||
Insurance – 2.8% | ||||
AIA Group Ltd. | 483,800 | $ 4,876,747 | ||
Ping An Insurance Co. of China Ltd., “H” | 139,500 | 1,004,537 | ||
$5,881,284 | ||||
Internet – 3.4% | ||||
Alibaba Group Holding Ltd. (a) | 162,800 | $ 2,482,436 | ||
Tencent Holdings Ltd. | 47,500 | 2,782,669 | ||
Z Holdings Corp. | 333,300 | 1,933,795 | ||
$7,198,900 | ||||
Leisure & Toys – 0.5% | ||||
Prosus N.V. | 12,592 | $ 1,054,125 | ||
Machinery & Tools – 4.8% | ||||
Assa Abloy AB | 74,031 | $ 2,248,909 | ||
GEA Group AG | 48,179 | 2,637,822 | ||
Ingersoll Rand, Inc. | 32,438 | 2,006,939 | ||
Ritchie Bros. Auctioneers, Inc. | 52,457 | 3,210,163 | ||
$10,103,833 | ||||
Major Banks – 1.3% | ||||
DBS Group Holdings Ltd. | 116,800 | $ 2,830,727 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Medical & Health Technology & Services – 0.3% | ||||
Alcon, Inc. | 7,710 | $ 679,289 | ||
Medical Equipment – 5.0% | ||||
EssilorLuxottica | 26,400 | $ 5,627,759 | ||
QIAGEN N.V. (a) | 51,539 | 2,871,870 | ||
Terumo Corp. | 49,900 | 2,108,267 | ||
$10,607,896 | ||||
Natural Gas - Distribution – 0.8% | ||||
China Resources Gas Group Ltd. | 288,000 | $ 1,626,972 | ||
Other Banks & Diversified Financials – 4.3% | ||||
AEON Financial Service Co. Ltd. | 65,700 | $ 709,375 | ||
Credicorp Ltd. | 10,152 | 1,239,255 | ||
Element Fleet Management Corp. (l) | 177,539 | 1,807,741 | ||
Grupo Financiero Banorte S.A. de C.V. | 166,256 | 1,080,090 | ||
HDFC Bank Ltd. | 216,273 | 4,304,183 | ||
$9,140,644 | ||||
Pharmaceuticals – 10.0% | ||||
Bayer AG | 36,710 | $ 1,964,333 | ||
Hypera S.A. | 78,691 | 399,389 | ||
Novartis AG | 60,476 | 5,310,778 | ||
Novo Nordisk A.S., “B” | 35,086 | 3,922,431 | ||
Roche Holding AG | 23,245 | 9,635,874 | ||
$21,232,805 | ||||
Precious Metals & Minerals – 1.9% | ||||
Agnico Eagle Mines Ltd. | 38,305 | $ 2,034,636 | ||
Franco-Nevada Corp. | 14,068 | 1,945,576 | ||
$3,980,212 | ||||
Railroad & Shipping – 2.5% | ||||
Canadian National Railway Co. | 29,085 | $ 3,573,383 | ||
Canadian Pacific Railway Ltd. | 23,236 | 1,671,221 | ||
$5,244,604 | ||||
Restaurants – 0.6% | ||||
Yum China Holdings, Inc. | 16,045 | $ 799,683 | ||
Yum China Holdings, Inc. | 8,250 | 404,800 | ||
$1,204,483 | ||||
Specialty Chemicals – 8.5% | ||||
Akzo Nobel N.V. | 19,354 | $ 2,126,331 | ||
L'Air Liquide S.A. | 20,113 | 3,510,820 | ||
Linde PLC | 17,753 | 6,184,806 | ||
Nitto Denko Corp. | 17,900 | 1,383,387 | ||
Sika AG | 5,943 | 2,466,913 | ||
Symrise AG | 15,800 | 2,343,875 | ||
$18,016,132 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Specialty Stores – 0.4% | ||||
Just Eat Takeaway (a) | 10,183 | $ 561,929 | ||
Ocado Group PLC (a) | 16,155 | 366,922 | ||
$928,851 | ||||
Tobacco – 1.3% | ||||
ITC Ltd. | 403,844 | $ 1,184,602 | ||
Swedish Match AB | 186,801 | 1,484,217 | ||
$2,668,819 | ||||
Total Common Stocks (Identified Cost, $123,205,864) | $206,791,044 | |||
Investment Companies (h) – 2.2% | ||||
Money Market Funds – 2.2% | ||||
MFS Institutional Money Market Portfolio, 0.07% (v) (Identified Cost, $4,586,283) | 4,586,283 | $ 4,586,283 | ||
Other Assets, Less Liabilities – 0.4% | 838,362 | |||
Net Assets – 100.0% | $212,215,689 |
(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 $4,586,283 and $206,791,044, respectively. | |||
(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 |
Financial Statements | Statement of Assets and Liabilities |
At 12/31/21Assets | |
Investments in unaffiliated issuers, at value, including $15,864 of securities on loan (identified cost, $123,205,864) | $206,791,044 |
Investments in affiliated issuers, at value (identified cost, $4,586,283) | 4,586,283 |
Receivables for | |
Investments sold | 5,276 |
Fund shares sold | 233,417 |
Interest and dividends | 941,046 |
Receivable from investment adviser | 10,504 |
Other assets | 1,225 |
Total assets | $212,568,795 |
Liabilities | |
Payable to custodian | $635 |
Payables for | |
Fund shares reacquired | 47,822 |
Payable to affiliates | |
Administrative services fee | 214 |
Shareholder servicing costs | 95 |
Distribution and/or service fees | 1,194 |
Deferred country tax expense payable | 225,201 |
Accrued expenses and other liabilities | 77,945 |
Total liabilities | $353,106 |
Net assets | $212,215,689 |
Net assets consist of | |
Paid-in capital | $118,383,930 |
Total distributable earnings (loss) | 93,831,759 |
Net assets | $212,215,689 |
Shares of beneficial interest outstanding | 12,717,222 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $124,670,767 | 7,428,336 | $16.78 |
Service Class | 87,544,922 | 5,288,886 | 16.55 |
Financial Statements | Statement of Operations |
Year ended 12/31/21 | |
Net investment income (loss) | |
Income | |
Dividends | $3,082,147 |
Income on securities loaned | 3,166 |
Dividends from affiliated issuers | 1,664 |
Other | 29 |
Foreign taxes withheld | (361,001) |
Total investment income | $2,726,005 |
Expenses | |
Management fee | $1,774,516 |
Distribution and/or service fees | 182,424 |
Shareholder servicing costs | 14,998 |
Administrative services fee | 36,586 |
Independent Trustees' compensation | 4,867 |
Custodian fee | 66,010 |
Shareholder communications | 9,153 |
Audit and tax fees | 69,795 |
Legal fees | 1,077 |
Miscellaneous | 23,957 |
Total expenses | $2,183,383 |
Reduction of expenses by investment adviser | (265,585) |
Net expenses | $1,917,798 |
Net investment income (loss) | $808,207 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers (net of $35,205 country tax) | $10,818,436 |
Foreign currency | (17,753) |
Net realized gain (loss) | $10,800,683 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers (net of $104,456 increase in deferred country tax) | $5,353,751 |
Translation of assets and liabilities in foreign currencies | (30,405) |
Net unrealized gain (loss) | $5,323,346 |
Net realized and unrealized gain (loss) | $16,124,029 |
Change in net assets from operations | $16,932,236 |
Financial Statements | Statements of Changes in Net Assets |
Year ended | ||
12/31/21 | 12/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $808,207 | $933,931 |
Net realized gain (loss) | 10,800,683 | 8,441,039 |
Net unrealized gain (loss) | 5,323,346 | 14,193,358 |
Change in net assets from operations | $16,932,236 | $23,568,328 |
Total distributions to shareholders | $(9,355,125) | $(3,926,189) |
Change in net assets from fund share transactions | $32,495,568 | $5,625,171 |
Total change in net assets | $40,072,679 | $25,267,310 |
Net assets | ||
At beginning of period | 172,143,010 | 146,875,700 |
At end of period | $212,215,689 | $172,143,010 |
Financial Statements | Financial Highlights |
Initial Class | Year ended | ||||
12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $16.09 | $14.26 | $12.78 | $15.50 | $12.13 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.09 | $0.10 | $0.21 | $0.17 | $0.14 |
Net realized and unrealized gain (loss) | 1.39 | 2.12 | 3.07 | (1.38) | 3.77 |
Total from investment operations | $1.48 | $2.22 | $3.28 | $(1.21) | $3.91 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.09) | $(0.21) | $(0.18) | $(0.16) | $(0.20) |
From net realized gain | (0.70) | (0.18) | (1.62) | (1.35) | (0.34) |
Total distributions declared to shareholders | $(0.79) | $(0.39) | $(1.80) | $(1.51) | $(0.54) |
Net asset value, end of period (x) | $16.78 | $16.09 | $14.26 | $12.78 | $15.50 |
Total return (%) (k)(r)(s)(x) | 9.27 | 15.84 | 27.30 | (9.02) | 32.64 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 1.01 | 1.04 | 1.05 | 1.05 | 1.05 |
Expenses after expense reductions | 0.88 | 0.88 | 0.88 | 0.97 | 1.05 |
Net investment income (loss) | 0.52 | 0.72 | 1.49 | 1.16 | 0.96 |
Portfolio turnover | 14 | 26 | 7 | 18 | 10 |
Net assets at end of period (000 omitted) | $124,671 | $120,291 | $112,259 | $105,919 | $130,591 |
Service Class | Year ended | ||||
12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $15.90 | $14.11 | $12.65 | $15.37 | $12.03 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.04 | $0.06 | $0.16 | $0.13 | $0.10 |
Net realized and unrealized gain (loss) | 1.38 | 2.09 | 3.07 | (1.38) | 3.74 |
Total from investment operations | $1.42 | $2.15 | $3.23 | $(1.25) | $3.84 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.07) | $(0.18) | $(0.15) | $(0.12) | $(0.16) |
From net realized gain | (0.70) | (0.18) | (1.62) | (1.35) | (0.34) |
Total distributions declared to shareholders | $(0.77) | $(0.36) | $(1.77) | $(1.47) | $(0.50) |
Net asset value, end of period (x) | $16.55 | $15.90 | $14.11 | $12.65 | $15.37 |
Total return (%) (k)(r)(s)(x) | 8.99 | 15.50 | 27.11 | (9.30) | 32.35 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 1.27 | 1.29 | 1.30 | 1.30 | 1.30 |
Expenses after expense reductions | 1.13 | 1.13 | 1.13 | 1.22 | 1.30 |
Net investment income (loss) | 0.22 | 0.44 | 1.18 | 0.87 | 0.70 |
Portfolio turnover | 14 | 26 | 7 | 18 | 10 |
Net assets at end of period (000 omitted) | $87,545 | $51,852 | $34,616 | $27,233 | $29,544 |
(d) | Per share data is based on average shares outstanding. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(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: | ||||
France | $34,464,783 | $— | $— | $34,464,783 |
Switzerland | 10,403,591 | 18,092,854 | — | 28,496,445 |
United Kingdom | 19,412,320 | — | — | 19,412,320 |
Germany | 8,934,943 | 9,727,278 | — | 18,662,221 |
Japan | 17,492,773 | — | — | 17,492,773 |
Canada | 14,242,720 | — | — | 14,242,720 |
Taiwan | 12,490,803 | — | — | 12,490,803 |
China | 9,811,788 | — | — | 9,811,788 |
India | 9,163,777 | — | — | 9,163,777 |
Other Countries | 33,535,140 | 9,018,274 | — | 42,553,414 |
Mutual Funds | 4,586,283 | — | — | 4,586,283 |
Total | $174,538,921 | $36,838,406 | $— | $211,377,327 |
Year ended 12/31/21 | Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $1,563,110 | $2,433,126 |
Long-term capital gains | 7,792,015 | 1,493,063 |
Total distributions | $9,355,125 | $3,926,189 |
As of 12/31/21 | |
Cost of investments | $129,405,184 |
Gross appreciation | 90,121,730 |
Gross depreciation | (8,149,587) |
Net unrealized appreciation (depreciation) | $81,972,143 |
Undistributed ordinary income | 1,969,437 |
Undistributed long-term capital gain | 9,870,372 |
Other temporary differences | 19,807 |
Total distributable earnings (loss) | $93,831,759 |
Year ended 12/31/21 | Year ended 12/31/20 | ||
Initial Class | $5,715,069 | $2,927,657 | |
Service Class | 3,640,056 | 998,532 | |
Total | $9,355,125 | $3,926,189 |
Up to $1 billion | 0.90% |
In excess of $1 billion and up to $2 billion | 0.80% |
In excess of $2 billion | 0.70% |
Year ended 12/31/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 736,218 | $12,306,356 | 824,973 | $11,064,566 | |
Service Class | 2,496,290 | 41,263,750 | 1,697,426 | 23,498,214 | |
3,232,508 | $53,570,106 | 2,522,399 | $34,562,780 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | 345,113 | $5,715,069 | 199,296 | $2,927,657 | |
Service Class | 222,633 | 3,640,056 | 68,722 | 998,532 | |
567,746 | $9,355,125 | 268,018 | $3,926,189 | ||
Shares reacquired | |||||
Initial Class | (1,130,683) | $(18,993,670) | (1,416,593) | $(19,892,313) | |
Service Class | (691,959) | (11,435,993) | (957,919) | (12,971,485) | |
(1,822,642) | $(30,429,663) | (2,374,512) | $(32,863,798) | ||
Net change | |||||
Initial Class | (49,352) | $(972,245) | (392,324) | $(5,900,090) | |
Service Class | 2,026,964 | 33,467,813 | 808,229 | 11,525,261 | |
1,977,612 | $32,495,568 | 415,905 | $5,625,171 |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $1,012,087 | $37,121,699 | $33,547,503 | $— | $— | $4,586,283 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $1,664 | $— |
February 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 | 135 | 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 | 135 | Private investor | N/A | |||||
Steven E. Buller (age 70) | Trustee | February 2014 | 135 | Private investor | N/A | |||||
John A. Caroselli (age 67) | Trustee | March 2017 | 135 | Private investor; JC Global Advisors, LLC (management consulting), President (since 2015) | N/A | |||||
Maureen R. Goldfarb (age 66) | Trustee | January 2009 | 135 | Private investor | N/A | |||||
Peter D. Jones (age 66) | Trustee | January 2019 | 135 | Private investor | N/A | |||||
James W. Kilman, Jr. (age 60) | Trustee | January 2019 | 135 | 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) | |||||
Clarence Otis, Jr. (age 65) | Trustee | March 2017 | 135 | Private investor | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director | |||||
Maryanne L. Roepke (age 65) | Trustee | May 2014 | 135 | Private investor | N/A | |||||
Laurie J. Thomsen (age 64) | Trustee | March 2005 | 135 | 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 | 135 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | ||||
Kino Clark (k) (age 53) | Assistant Treasurer | January 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
John W. Clark, Jr. (k) (age 54) | Assistant Treasurer | April 2017 | 135 | Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head - Treasurer's Office (until February 2017) | ||||
Thomas H. Connors (k) (age 62) | Assistant Secretary and Assistant Clerk | September 2012 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
David L. DiLorenzo (k) (age 53) | President | July 2005 | 135 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 54) | Secretary and Clerk | April 2017 | 135 | 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 48) | Assistant Secretary and Assistant Clerk | June 2006 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
Amanda S. Mooradian (k) (age 42) | Assistant Secretary and Assistant Clerk | September 2018 | 135 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 51) | Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Kasey L. Phillips (k) (age 51) | Assistant Treasurer | September 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 47) | Assistant Secretary and Assistant Clerk | October 2014 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Martin J. Wolin (k) (age 54) | Chief Compliance Officer | July 2015 | 135 | Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer | ||||
James O. Yost (k) (age 61) | Treasurer | September 1990 | 135 | 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 | Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 |
Portfolio Manager(s) | |
Matthew Barrett Kevin Dwan |
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. |
Value Portfolio
1 | |
2 | |
3 | |
5 | |
7 | |
8 | |
12 | |
13 | |
14 | |
15 | |
17 | |
24 | |
25 | |
28 | |
31 | |
31 | |
31 | |
31 | |
31 | |
32 |
Cadence Design Systems, Inc. | 5.2% |
Nestle S.A. | 5.0% |
Schneider Electric SE | 3.9% |
Givaudan S.A. | 3.7% |
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 3.4% |
Pernod Ricard S.A. | 2.8% |
L'Oréal | 2.8% |
Diageo PLC | 2.5% |
Legrand S.A. | 2.4% |
ANSYS, Inc. | 2.2% |
Information Technology | 27.2% |
Consumer Staples | 24.6% |
Industrials | 21.9% |
Materials | 11.8% |
Consumer Discretionary | 4.4% |
Health Care | 3.5% |
Financials | 2.9% |
Real Estate | 1.8% |
Equity Warrants (o) | 0.0% |
France | 16.7% |
Japan | 16.7% |
Switzerland | 16.5% |
United States | 13.8% |
United Kingdom | 12.7% |
Germany | 8.4% |
Taiwan | 3.4% |
Canada | 2.9% |
Denmark | 2.1% |
Other Countries | 6.8% |
Euro | 28.4% |
Japanese Yen | 16.7% |
Swiss Franc | 16.5% |
United States Dollar | 14.2% |
British Pound Sterling | 12.7% |
Taiwan Dollar | 3.4% |
Canadian Dollar | 2.9% |
Danish Krone | 2.1% |
South Korean Won | 2.0% |
Other Currencies | 1.1% |
(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. |
(o) | Less than 0.1%. |
(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 and Other. |
(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. |
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr |
Initial Class | 10/02/95 | 10.55% | 14.07% | 12.43% |
Service Class | 8/24/01 | 10.28% | 13.78% | 12.16% |
MSCI EAFE Index (net div) (f) | 11.26% | 9.55% | 8.03% |
(f) | Source: FactSet Research Systems Inc. |
(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. |
July 1, 2021 through December 31, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 7/01/21 | Ending Account Value 12/31/21 | Expenses Paid During Period (p) 7/01/21-12/31/21 | |
Initial Class | Actual | 0.89% | $1,000.00 | $1,054.12 | $4.61 |
Hypothetical (h) | 0.89% | $1,000.00 | $1,020.72 | $4.53 | |
Service Class | Actual | 1.14% | $1,000.00 | $1,052.68 | $5.90 |
Hypothetical (h) | 1.14% | $1,000.00 | $1,019.46 | $5.80 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 96.5% | ||||
Airlines – 0.7% | ||||
Ryanair Holdings PLC, ADR (a) | 116,622 | $ 11,933,929 | ||
Alcoholic Beverages – 5.4% | ||||
Diageo PLC | 774,105 | $ 42,288,796 | ||
Pernod Ricard S.A. | 195,828 | 47,153,947 | ||
$89,442,743 | ||||
Apparel Manufacturers – 2.6% | ||||
Adidas AG | 37,747 | $ 10,881,256 | ||
Compagnie Financiere Richemont S.A. | 116,261 | 17,360,458 | ||
LVMH Moet Hennessy Louis Vuitton SE | 17,364 | 14,371,996 | ||
$42,613,710 | ||||
Automotive – 1.0% | ||||
Compagnie Generale des Etablissements Michelin SCA | 51,202 | $ 8,403,002 | ||
Knorr-Bremse AG | 88,167 | 8,701,014 | ||
$17,104,016 | ||||
Biotechnology – 1.7% | ||||
Novozymes A.S. | 347,071 | $ 28,420,749 | ||
Brokerage & Asset Managers – 0.8% | ||||
Euronext N.V. | 124,258 | $ 12,908,926 | ||
Business Services – 5.9% | ||||
Experian PLC | 504,329 | $ 24,793,285 | ||
Intertek Group PLC | 198,644 | 15,137,639 | ||
Nomura Research Institute Ltd. | 373,800 | 16,036,712 | ||
Secom Co. Ltd. | 174,900 | 12,142,497 | ||
SGS S.A. | 8,038 | 26,774,720 | ||
Sohgo Security Services Co. Ltd. | 81,600 | 3,241,867 | ||
$98,126,720 | ||||
Chemicals – 3.7% | ||||
Givaudan S.A. | 11,639 | $ 61,209,491 | ||
Computer Software – 10.5% | ||||
ANSYS, Inc. (a) | 91,254 | $ 36,603,805 | ||
Cadence Design Systems, Inc. (a) | 463,401 | 86,354,776 | ||
Dassault Systemes SE | 353,613 | 21,059,392 | ||
OBIC Co. Ltd. | 74,900 | 14,064,505 | ||
SAP SE | 121,885 | 17,407,738 | ||
$175,490,216 | ||||
Computer Software - Systems – 3.4% | ||||
Amadeus IT Group S.A. (a) | 215,919 | $ 14,543,125 | ||
NICE Systems Ltd., ADR (a) | 14,237 | 4,322,353 | ||
Samsung Electronics Co. Ltd. | 497,397 | 32,762,301 | ||
Wix.com Ltd. (a) | 37,019 | 5,841,228 | ||
$57,469,007 | ||||
Construction – 0.8% | ||||
Geberit AG | 16,923 | $ 13,776,169 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Consumer Products – 8.7% | ||||
Colgate-Palmolive Co. | 70,748 | $ 6,037,634 | ||
Kao Corp. | 397,900 | 20,820,309 | ||
Kobayashi Pharmaceutical Co. Ltd. | 204,500 | 16,071,286 | ||
KOSE Corp. | 29,500 | 3,346,736 | ||
Lion Corp. | 324,000 | 4,329,201 | ||
L'Oréal | 98,454 | 46,735,859 | ||
Reckitt Benckiser Group PLC | 363,907 | 31,238,555 | ||
ROHTO Pharmaceutical Co. Ltd. | 457,500 | 13,820,851 | ||
Svenska Cellulosa Aktiebolaget | 141,219 | 2,501,546 | ||
$144,901,977 | ||||
Electrical Equipment – 9.2% | ||||
Halma PLC | 465,417 | $ 20,158,885 | ||
Legrand S.A. | 341,278 | 39,981,267 | ||
OMRON Corp. | 138,900 | 13,838,077 | ||
Schneider Electric SE | 329,229 | 64,642,680 | ||
Spectris PLC | 160,635 | 7,953,498 | ||
Yokogawa Electric Corp. | 324,700 | 5,854,367 | ||
$152,428,774 | ||||
Electronics – 8.0% | ||||
Analog Devices, Inc. | 180,295 | $ 31,690,452 | ||
DISCO Corp. | 27,700 | 8,464,357 | ||
Hirose Electric Co. Ltd. | 134,300 | 22,579,866 | ||
Infineon Technologies AG | 66,664 | 3,093,559 | ||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 468,940 | 56,418,172 | ||
Texas Instruments, Inc. | 54,389 | 10,250,695 | ||
$132,497,101 | ||||
Engineering - Construction – 1.3% | ||||
IMI PLC | 892,621 | $ 20,974,475 | ||
Food & Beverages – 8.8% | ||||
Chocoladefabriken Lindt & Sprungli AG | 382 | $ 5,275,738 | ||
Danone S.A. | 106,870 | 6,642,045 | ||
Ezaki Glico Co. Ltd. | 166,500 | 5,297,662 | ||
ITO EN Ltd. | 283,400 | 14,880,779 | ||
Kerry Group PLC | 91,212 | 11,760,427 | ||
Nestle S.A. | 591,565 | 82,736,000 | ||
Nissan Foods Holdings Co. Ltd. | 55,100 | 4,018,856 | ||
Toyo Suisan Kaisha Ltd. | 379,700 | 16,091,780 | ||
$146,703,287 | ||||
Insurance – 0.3% | ||||
Hiscox Ltd. | 430,017 | $ 5,010,282 | ||
Machinery & Tools – 6.5% | ||||
Epiroc AB | 453,319 | $ 11,498,275 | ||
GEA Group AG | 263,950 | 14,451,381 | ||
Nordson Corp. | 45,041 | 11,497,616 | ||
Schindler Holding AG | 61,619 | 16,532,499 | ||
SMC Corp. | 29,500 | 19,898,331 | ||
Spirax-Sarco Engineering PLC | 142,184 | 30,888,730 | ||
Wartsila Oyj Abp | 211,440 | 2,944,615 | ||
$107,711,447 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Major Banks – 0.6% | ||||
UBS Group AG | 527,129 | $ 9,460,961 | ||
Medical Equipment – 4.3% | ||||
Agilent Technologies, Inc. | 49,378 | $ 7,883,198 | ||
Bruker BioSciences Corp. | 99,128 | 8,317,830 | ||
EssilorLuxottica | 76,380 | 16,282,128 | ||
Nihon Kohden Corp. | 281,200 | 7,712,649 | ||
Shimadzu Corp. | 549,600 | 23,196,627 | ||
Terumo Corp. | 180,800 | 7,638,773 | ||
$71,031,205 | ||||
Other Banks & Diversified Financials – 1.2% | ||||
Chiba Bank Ltd. | 560,600 | $ 3,211,644 | ||
Hachijuni Bank Ltd. | 549,900 | 1,878,733 | ||
Julius Baer Group Ltd. | 80,458 | 5,376,653 | ||
Jyske Bank A.S. (a) | 69,829 | 3,596,956 | ||
Mebuki Financial Group, Inc. | 926,400 | 1,908,692 | ||
North Pacific Bank Ltd. | 824,500 | 1,791,924 | ||
Sydbank A.S. | 92,597 | 2,931,554 | ||
$20,696,156 | ||||
Pharmaceuticals – 1.6% | ||||
Roche Holding AG | 41,978 | $ 17,401,366 | ||
Santen Pharmaceutical Co. Ltd. | 768,000 | 9,393,862 | ||
$26,795,228 | ||||
Precious Metals & Minerals – 2.9% | ||||
Agnico Eagle Mines Ltd. | 175,459 | $ 9,319,807 | ||
Franco-Nevada Corp. | 232,596 | 32,167,552 | ||
Wheaton Precious Metals Corp. | 173,817 | 7,458,624 | ||
$48,945,983 | ||||
Printing & Publishing – 0.9% | ||||
Wolters Kluwer N.V. | 125,522 | $ 14,805,139 | ||
Real Estate – 1.8% | ||||
LEG Immobilien SE | 68,686 | $ 9,595,016 | ||
TAG Immobilien AG | 262,853 | 7,364,740 | ||
Vonovia SE, REIT | 234,786 | 12,964,233 | ||
$29,923,989 | ||||
Specialty Chemicals – 3.3% | ||||
Croda International PLC | 66,818 | $ 9,152,680 | ||
Kansai Paint Co. Ltd. | 264,000 | 5,737,634 | ||
Sika AG | 43,987 | 18,258,811 | ||
Symrise AG | 141,814 | 21,037,610 | ||
$54,186,735 | ||||
Specialty Stores – 0.6% | ||||
Ocado Group PLC (a) | 169,262 | $ 3,844,375 | ||
Zalando SE (a) | 79,652 | 6,459,127 | ||
$10,303,502 | ||||
Total Common Stocks (Identified Cost, $922,246,420) | $1,604,871,917 |
Issuer | Shares/Par | Value ($) | ||
Preferred Stocks – 1.6% | ||||
Consumer Products – 1.6% | ||||
Henkel AG & Co. KGaA (Identified Cost, $39,059,313) | 332,407 | $ 26,922,595 |
Issuer | Strike Price | First Exercise | ||
Warrants – 0.0% | ||||
Apparel Manufacturers – 0.0% | ||||
Compagnie Financiere Richemont S.A. (1 share for 2 warrants, Expiration 12/04/23) (a) (Identified Cost, $0) | CHF 67.00 | 11/20/23 | 224,332 | $ 246,194 |
Investment Companies (h) – 1.7% | ||||
Money Market Funds – 1.7% | ||||
MFS Institutional Money Market Portfolio, 0.07% (v) (Identified Cost, $27,180,912) | 27,183,142 | $ 27,183,142 | ||
Other Assets, Less Liabilities – 0.2% | 3,824,862 | |||
Net Assets – 100.0% | $1,663,048,710 |
(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 $27,183,142 and $1,632,040,706, 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 |
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: | |
CHF | Swiss Franc |
Financial Statements | Statement of Assets and Liabilities |
At 12/31/21Assets | |
Investments in unaffiliated issuers, at value (identified cost, $961,305,733) | $1,632,040,706 |
Investments in affiliated issuers, at value (identified cost, $27,180,912) | 27,183,142 |
Receivables for | |
Investments sold | 128,292 |
Fund shares sold | 855,806 |
Dividends | 3,661,797 |
Other assets | 6,316 |
Total assets | $1,663,876,059 |
Liabilities | |
Payables for | |
Fund shares reacquired | $561,267 |
Payable to affiliates | |
Investment adviser | 77,226 |
Administrative services fee | 1,277 |
Shareholder servicing costs | 302 |
Distribution and/or service fees | 18,096 |
Payable for independent Trustees' compensation | 304 |
Accrued expenses and other liabilities | 168,877 |
Total liabilities | $827,349 |
Net assets | $1,663,048,710 |
Net assets consist of | |
Paid-in capital | $934,532,997 |
Total distributable earnings (loss) | 728,515,713 |
Net assets | $1,663,048,710 |
Shares of beneficial interest outstanding | 44,835,359 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $344,051,799 | 9,145,793 | $37.62 |
Service Class | 1,318,996,911 | 35,689,566 | 36.96 |
Financial Statements | Statement of Operations |
Year ended 12/31/21 | |
Net investment income (loss) | |
Income | |
Dividends | $23,478,694 |
Dividends from affiliated issuers | 15,579 |
Income on securities loaned | 8,807 |
Other | 173 |
Foreign taxes withheld | (2,383,905) |
Total investment income | $21,119,348 |
Expenses | |
Management fee | $13,652,740 |
Distribution and/or service fees | 3,113,313 |
Shareholder servicing costs | 44,674 |
Administrative services fee | 216,078 |
Independent Trustees' compensation | 23,412 |
Custodian fee | 182,031 |
Shareholder communications | 60,709 |
Audit and tax fees | 61,422 |
Legal fees | 7,900 |
Miscellaneous | 36,648 |
Total expenses | $17,398,927 |
Reduction of expenses by investment adviser | (200,998) |
Net expenses | $17,197,929 |
Net investment income (loss) | $3,921,419 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $58,972,330 |
Affiliated issuers | 1,494 |
Forward foreign currency exchange contracts | 2,264,909 |
Foreign currency | 60,488 |
Net realized gain (loss) | $61,299,221 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $92,801,537 |
Affiliated issuers | (1,494) |
Forward foreign currency exchange contracts | 1,227,680 |
Translation of assets and liabilities in foreign currencies | (340,468) |
Net unrealized gain (loss) | $93,687,255 |
Net realized and unrealized gain (loss) | $154,986,476 |
Change in net assets from operations | $158,907,895 |
Financial Statements | Statements of Changes in Net Assets |
Year ended | ||
12/31/21 | 12/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $3,921,419 | $5,201,242 |
Net realized gain (loss) | 61,299,221 | 42,607,038 |
Net unrealized gain (loss) | 93,687,255 | 206,247,474 |
Change in net assets from operations | $158,907,895 | $254,055,754 |
Total distributions to shareholders | $(45,822,539) | $(38,136,630) |
Change in net assets from fund share transactions | $44,576,605 | $(66,701,792) |
Total change in net assets | $157,661,961 | $149,217,332 |
Net assets | ||
At beginning of period | 1,505,386,749 | 1,356,169,417 |
At end of period | $1,663,048,710 | $1,505,386,749 |
Financial Statements | Financial Highlights |
Initial Class | Year ended | ||||
12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $35.05 | $29.94 | $25.02 | $28.25 | $22.57 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.16 | $0.18 | $0.28 | $0.30 | $0.29 |
Net realized and unrealized gain (loss) | 3.51 | 5.87 | 6.06 | (2.91) | 5.80 |
Total from investment operations | $3.67 | $6.05 | $6.34 | $(2.61) | $6.09 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.12) | $(0.31) | $(0.54) | $(0.31) | $(0.39) |
From net realized gain | (0.98) | (0.63) | (0.88) | (0.31) | (0.02) |
Total distributions declared to shareholders | $(1.10) | $(0.94) | $(1.42) | $(0.62) | $(0.41) |
Net asset value, end of period (x) | $37.62 | $35.05 | $29.94 | $25.02 | $28.25 |
Total return (%) (k)(r)(s)(x) | 10.55 | 20.52 | 25.94 | (9.49) | 27.14 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.90 | 0.92 | 0.92 | 0.91 | 0.91 |
Expenses after expense reductions | 0.89 | 0.90 | 0.90 | 0.90 | 0.90 |
Net investment income (loss) | 0.45 | 0.59 | 0.99 | 1.08 | 1.13 |
Portfolio turnover | 13 | 10 | 13 | 16 | 10 |
Net assets at end of period (000 omitted) | $344,052 | $328,247 | $308,053 | $282,244 | $317,415 |
Service Class | Year ended | ||||
12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $34.47 | $29.47 | $24.60 | $27.80 | $22.23 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.07 | $0.10 | $0.20 | $0.27 | $0.23 |
Net realized and unrealized gain (loss) | 3.45 | 5.77 | 5.97 | (2.91) | 5.70 |
Total from investment operations | $3.52 | $5.87 | $6.17 | $(2.64) | $5.93 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.05) | $(0.24) | $(0.42) | $(0.25) | $(0.34) |
From net realized gain | (0.98) | (0.63) | (0.88) | (0.31) | (0.02) |
Total distributions declared to shareholders | $(1.03) | $(0.87) | $(1.30) | $(0.56) | $(0.36) |
Net asset value, end of period (x) | $36.96 | $34.47 | $29.47 | $24.60 | $27.80 |
Total return (%) (k)(r)(s)(x) | 10.28 | 20.21 | 25.65 | (9.72) | 26.82 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 1.15 | 1.17 | 1.17 | 1.15 | 1.16 |
Expenses after expense reductions | 1.14 | 1.15 | 1.15 | 1.14 | 1.15 |
Net investment income (loss) | 0.19 | 0.34 | 0.72 | 0.97 | 0.89 |
Portfolio turnover | 13 | 10 | 13 | 16 | 10 |
Net assets at end of period (000 omitted) | $1,318,997 | $1,177,140 | $1,048,117 | $858,278 | $1,728,247 |
(d) | Per share data is based on average shares outstanding. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(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: | ||||
France | $278,181,242 | $— | $— | $278,181,242 |
Japan | 277,268,577 | — | — | 277,268,577 |
Switzerland | 144,191,685 | 130,217,375 | — | 274,409,060 |
United Kingdom | 211,441,200 | — | — | 211,441,200 |
United States | 198,636,006 | — | — | 198,636,006 |
Germany | 106,310,390 | 32,567,879 | — | 138,878,269 |
Taiwan | 56,418,172 | — | — | 56,418,172 |
Canada | 48,945,983 | — | — | 48,945,983 |
Denmark | 2,931,554 | 32,017,705 | — | 34,949,259 |
Other Countries | 92,923,652 | 19,989,286 | — | 112,912,938 |
Mutual Funds | 27,183,142 | — | — | 27,183,142 |
Total | $1,444,431,603 | $214,792,245 | $— | $1,659,223,848 |
Risk | Forward Foreign Currency Exchange Contracts |
Foreign Exchange | $2,264,909 |
Risk | Forward Foreign Currency Exchange Contracts |
Foreign Exchange | $1,227,680 |
Year ended 12/31/21 | Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $3,637,214 | $12,548,204 |
Long-term capital gains | 42,185,325 | 25,588,426 |
Total distributions | $45,822,539 | $38,136,630 |
As of 12/31/21 | |
Cost of investments | $997,006,143 |
Gross appreciation | 692,084,447 |
Gross depreciation | (29,866,742) |
Net unrealized appreciation (depreciation) | $662,217,705 |
Undistributed ordinary income | 12,440,765 |
Undistributed long-term capital gain | 53,930,299 |
Other temporary differences | (73,056) |
Total distributable earnings (loss) | $728,515,713 |
Year ended 12/31/21 | Year ended 12/31/20 | ||
Initial Class | $10,070,073 | $8,702,058 | |
Service Class | 35,752,466 | 29,434,572 | |
Total | $45,822,539 | $38,136,630 |
Up to $1 billion | 0.90% |
In excess of $1 billion and up to $2 billion | 0.80% |
In excess of $2 billion | 0.70% |
Year ended 12/31/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 1,560,198 | $55,767,129 | 1,545,411 | $46,930,881 | |
Service Class | 5,119,497 | 180,287,362 | 4,685,053 | 136,442,604 | |
6,679,695 | $236,054,491 | 6,230,464 | $183,373,485 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | 268,496 | $9,856,486 | 262,777 | $8,408,861 | |
Service Class | 990,373 | 35,752,466 | 934,431 | 29,434,572 | |
1,258,869 | $45,608,952 | 1,197,208 | $37,843,433 | ||
Shares reacquired | |||||
Initial Class | (2,047,578) | $(73,961,957) | (2,732,208) | $(81,847,531) | |
Service Class | (4,570,255) | (163,124,881) | (7,040,629) | (206,071,179) | |
(6,617,833) | $(237,086,838) | (9,772,837) | $(287,918,710) | ||
Net change | |||||
Initial Class | (218,884) | $(8,338,342) | (924,020) | $(26,507,789) | |
Service Class | 1,539,615 | 52,914,947 | (1,421,145) | (40,194,003) | |
1,320,731 | $44,576,605 | (2,345,165) | $(66,701,792) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $42,517,675 | $189,938,594 | $205,273,127 | $1,494 | $(1,494) | $27,183,142 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $15,579 | $— |
February 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 | 135 | 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 | 135 | Private investor | N/A | |||||
Steven E. Buller (age 70) | Trustee | February 2014 | 135 | Private investor | N/A | |||||
John A. Caroselli (age 67) | Trustee | March 2017 | 135 | Private investor; JC Global Advisors, LLC (management consulting), President (since 2015) | N/A | |||||
Maureen R. Goldfarb (age 66) | Trustee | January 2009 | 135 | Private investor | N/A | |||||
Peter D. Jones (age 66) | Trustee | January 2019 | 135 | Private investor | N/A | |||||
James W. Kilman, Jr. (age 60) | Trustee | January 2019 | 135 | 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) | |||||
Clarence Otis, Jr. (age 65) | Trustee | March 2017 | 135 | Private investor | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director | |||||
Maryanne L. Roepke (age 65) | Trustee | May 2014 | 135 | Private investor | N/A | |||||
Laurie J. Thomsen (age 64) | Trustee | March 2005 | 135 | 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 | 135 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | ||||
Kino Clark (k) (age 53) | Assistant Treasurer | January 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
John W. Clark, Jr. (k) (age 54) | Assistant Treasurer | April 2017 | 135 | Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head - Treasurer's Office (until February 2017) | ||||
Thomas H. Connors (k) (age 62) | Assistant Secretary and Assistant Clerk | September 2012 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
David L. DiLorenzo (k) (age 53) | President | July 2005 | 135 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 54) | Secretary and Clerk | April 2017 | 135 | 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 48) | Assistant Secretary and Assistant Clerk | June 2006 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
Amanda S. Mooradian (k) (age 42) | Assistant Secretary and Assistant Clerk | September 2018 | 135 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 51) | Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Kasey L. Phillips (k) (age 51) | Assistant Treasurer | September 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 47) | Assistant Secretary and Assistant Clerk | October 2014 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Martin J. Wolin (k) (age 54) | Chief Compliance Officer | July 2015 | 135 | Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer | ||||
James O. Yost (k) (age 61) | Treasurer | September 1990 | 135 | 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 | Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 |
Portfolio Manager(s) | |
Pablo de la Mata Philip Evans 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. |
Growth Stock Portfolio
1 | |
2 | |
3 | |
5 | |
7 | |
8 | |
11 | |
12 | |
13 | |
14 | |
16 | |
22 | |
23 | |
26 | |
28 | |
28 | |
28 | |
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29 |
Microsoft Corp. | 12.0% |
Alphabet, Inc., “A” | 8.5% |
Apple, Inc. | 5.3% |
Accenture PLC, “A” | 4.2% |
Church & Dwight Co., Inc. | 2.9% |
Visa, Inc., “A” | 2.8% |
Colgate-Palmolive Co. | 2.4% |
Amphenol Corp., “A” | 2.3% |
Boston Scientific Corp. | 2.1% |
Charles Schwab Corp. | 2.1% |
Information Technology | 36.1% |
Health Care | 15.1% |
Communication Services | 12.2% |
Consumer Discretionary | 10.7% |
Consumer Staples | 8.3% |
Financials | 6.9% |
Industrials | 6.4% |
Real Estate | 2.0% |
Materials | 1.1% |
Utilities | 0.9% |
(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 | 10-yr |
Initial Class | 5/06/98 | 25.97% | 22.84% | 17.58% |
Service Class | 8/24/01 | 25.66% | 22.53% | 17.29% |
Russell 1000® Growth Index (f) | 27.60% | 25.32% | 19.79% |
(f) | Source: FactSet Research Systems Inc. |
(h) | Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and/or Russell ratings or underlying data and no party may rely on any Russell Indexes and/or Russell ratings and/or underlying data contained in this document. No further distribution of Russell Data is permitted without Russell's express written consent. Russell does not promote, sponsor, or endorse the content of this document. |
July 1, 2021 through December 31, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 7/01/21 | Ending Account Value 12/31/21 | Expenses Paid During Period (p) 7/01/21-12/31/21 | |
Initial Class | Actual | 0.76% | $1,000.00 | $1,120.65 | $4.06 |
Hypothetical (h) | 0.76% | $1,000.00 | $1,021.37 | $3.87 | |
Service Class | Actual | 1.01% | $1,000.00 | $1,119.12 | $5.39 |
Hypothetical (h) | 1.01% | $1,000.00 | $1,020.11 | $5.14 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 99.7% | ||||
Apparel Manufacturers – 4.1% | ||||
Adidas AG | 56,965 | $ 16,421,193 | ||
LVMH Moet Hennessy Louis Vuitton SE | 11,993 | 9,926,477 | ||
NIKE, Inc., “B” | 138,360 | 23,060,461 | ||
$49,408,131 | ||||
Brokerage & Asset Managers – 2.7% | ||||
Blackstone, Inc. | 48,224 | $ 6,239,703 | ||
Charles Schwab Corp. | 302,297 | 25,423,178 | ||
$31,662,881 | ||||
Business Services – 10.7% | ||||
Accenture PLC, “A” | 120,844 | $ 50,095,880 | ||
Cognizant Technology Solutions Corp., “A” | 102,732 | 9,114,383 | ||
Equifax, Inc. | 54,153 | 15,855,457 | ||
Fidelity National Information Services, Inc. | 149,971 | 16,369,335 | ||
Fiserv, Inc. (a) | 226,002 | 23,456,747 | ||
Verisk Analytics, Inc., “A” | 56,953 | 13,026,860 | ||
$127,918,662 | ||||
Cable TV – 1.0% | ||||
Charter Communications, Inc., “A” (a) | 17,922 | $ 11,684,606 | ||
Computer Software – 12.0% | ||||
Microsoft Corp. | 424,240 | $ 142,680,397 | ||
Computer Software - Systems – 5.3% | ||||
Apple, Inc. | 355,662 | $ 63,154,901 | ||
Construction – 2.3% | ||||
Otis Worldwide Corp. | 158,475 | $ 13,798,418 | ||
Sherwin-Williams Co. | 37,119 | 13,071,827 | ||
$26,870,245 | ||||
Consumer Products – 5.9% | ||||
Church & Dwight Co., Inc. | 332,104 | $ 34,040,660 | ||
Colgate-Palmolive Co. | 331,139 | 28,259,402 | ||
Estee Lauder Cos., Inc., “A” | 21,314 | 7,890,443 | ||
$70,190,505 | ||||
Electrical Equipment – 5.4% | ||||
Amphenol Corp., “A” | 319,043 | $ 27,903,501 | ||
Fortive Corp. | 225,750 | 17,222,467 | ||
TE Connectivity Ltd. | 115,228 | 18,590,886 | ||
$63,716,854 | ||||
Electronics – 2.8% | ||||
Analog Devices, Inc. | 70,571 | $ 12,404,265 | ||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 70,689 | 8,504,593 | ||
Texas Instruments, Inc. | 64,413 | 12,139,918 | ||
$33,048,776 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Food & Beverages – 2.4% | ||||
McCormick & Co., Inc. | 141,635 | $ 13,683,357 | ||
PepsiCo, Inc. | 86,334 | 14,997,079 | ||
$28,680,436 | ||||
General Merchandise – 1.7% | ||||
Dollarama, Inc. | 410,146 | $ 20,527,565 | ||
Health Maintenance Organizations – 0.8% | ||||
Cigna Corp. | 41,606 | $ 9,553,986 | ||
Insurance – 3.2% | ||||
Aon PLC | 84,329 | $ 25,345,924 | ||
Marsh & McLennan Cos., Inc. | 73,515 | 12,778,378 | ||
$38,124,302 | ||||
Internet – 10.8% | ||||
Alibaba Group Holding Ltd. (a) | 991,572 | $ 15,119,866 | ||
Alphabet, Inc., “A” (a) | 34,905 | 101,121,181 | ||
Tencent Holdings Ltd. | 210,500 | 12,331,617 | ||
$128,572,664 | ||||
Leisure & Toys – 1.7% | ||||
Electronic Arts, Inc. | 154,664 | $ 20,400,182 | ||
Medical & Health Technology & Services – 1.5% | ||||
ICON PLC (a) | 56,169 | $ 17,395,539 | ||
Medical Equipment – 12.5% | ||||
Abbott Laboratories | 87,691 | $ 12,341,631 | ||
Agilent Technologies, Inc. | 58,276 | 9,303,763 | ||
Becton, Dickinson and Co. | 73,310 | 18,435,999 | ||
Boston Scientific Corp. (a) | 601,712 | 25,560,726 | ||
Danaher Corp. | 48,742 | 16,036,605 | ||
Medtronic PLC | 81,962 | 8,478,969 | ||
STERIS PLC | 56,151 | 13,667,715 | ||
Stryker Corp. | 76,362 | 20,420,726 | ||
Thermo Fisher Scientific, Inc. | 36,262 | 24,195,457 | ||
$148,441,591 | ||||
Other Banks & Diversified Financials – 4.9% | ||||
Mastercard, Inc., “A” | 34,152 | $ 12,271,497 | ||
Moody's Corp. | 32,294 | 12,613,390 | ||
Visa, Inc., “A” | 152,856 | 33,125,424 | ||
$58,010,311 | ||||
Pharmaceuticals – 0.4% | ||||
Roche Holding AG | 10,520 | $ 4,360,912 | ||
Railroad & Shipping – 1.3% | ||||
Union Pacific Corp. | 63,350 | $ 15,959,766 | ||
Restaurants – 1.2% | ||||
Starbucks Corp. | 125,944 | $ 14,731,670 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Specialty Stores – 2.2% | ||||
Ross Stores, Inc. | 127,995 | $ 14,627,269 | ||
TJX Cos., Inc. | 159,633 | 12,119,337 | ||
$26,746,606 | ||||
Telecommunications - Wireless – 2.0% | ||||
American Tower Corp., REIT | 80,535 | $ 23,556,488 | ||
Utilities - Electric Power – 0.9% | ||||
Xcel Energy, Inc. | 154,142 | $ 10,435,413 | ||
Total Common Stocks (Identified Cost, $519,704,911) | $1,185,833,389 | |||
Investment Companies (h) – 0.4% | ||||
Money Market Funds – 0.4% | ||||
MFS Institutional Money Market Portfolio, 0.07% (v) (Identified Cost, $4,764,975) | 4,764,975 | $ 4,764,975 | ||
Other Assets, Less Liabilities – (0.1)% | (597,264) | |||
Net Assets – 100.0% | $1,190,001,100 |
(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 $4,764,975 and $1,185,833,389, 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 |
Financial Statements | Statement of Assets and Liabilities |
At 12/31/21Assets | |
Investments in unaffiliated issuers, at value (identified cost, $519,704,911) | $1,185,833,389 |
Investments in affiliated issuers, at value (identified cost, $4,764,975) | 4,764,975 |
Receivables for | |
Fund shares sold | 158,270 |
Dividends | 712,187 |
Other assets | 4,717 |
Total assets | $1,191,473,538 |
Liabilities | |
Payables for | |
Fund shares reacquired | $1,276,649 |
Payable to affiliates | |
Investment adviser | 47,073 |
Administrative services fee | 932 |
Shareholder servicing costs | 241 |
Distribution and/or service fees | 6,533 |
Payable for independent Trustees' compensation | 326 |
Accrued expenses and other liabilities | 140,684 |
Total liabilities | $1,472,438 |
Net assets | $1,190,001,100 |
Net assets consist of | |
Paid-in capital | $393,514,043 |
Total distributable earnings (loss) | 796,487,057 |
Net assets | $1,190,001,100 |
Shares of beneficial interest outstanding | 43,479,214 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $714,523,518 | 25,917,610 | $27.57 |
Service Class | 475,477,582 | 17,561,604 | 27.07 |
Financial Statements | Statement of Operations |
Year ended 12/31/21 | |
Net investment income (loss) | |
Income | |
Dividends | $10,355,726 |
Other | 23,523 |
Dividends from affiliated issuers | 3,325 |
Foreign taxes withheld | (102,032) |
Total investment income | $10,280,542 |
Expenses | |
Management fee | $8,310,949 |
Distribution and/or service fees | 1,122,562 |
Shareholder servicing costs | 36,819 |
Administrative services fee | 156,799 |
Independent Trustees' compensation | 17,345 |
Custodian fee | 58,414 |
Shareholder communications | 49,940 |
Audit and tax fees | 60,650 |
Legal fees | 5,607 |
Miscellaneous | 32,460 |
Total expenses | $9,851,545 |
Reduction of expenses by investment adviser | (142,883) |
Net expenses | $9,708,662 |
Net investment income (loss) | $571,880 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $131,556,932 |
Foreign currency | 21,922 |
Net realized gain (loss) | $131,578,854 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $126,855,928 |
Affiliated issuers | (1) |
Translation of assets and liabilities in foreign currencies | (5,435) |
Net unrealized gain (loss) | $126,850,492 |
Net realized and unrealized gain (loss) | $258,429,346 |
Change in net assets from operations | $259,001,226 |
Financial Statements | Statements of Changes in Net Assets |
Year ended | ||
12/31/21 | 12/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $571,880 | $1,639,300 |
Net realized gain (loss) | 131,578,854 | 146,310,591 |
Net unrealized gain (loss) | 126,850,492 | 52,925,899 |
Change in net assets from operations | $259,001,226 | $200,875,790 |
Total distributions to shareholders | $(148,535,842) | $(96,440,810) |
Change in net assets from fund share transactions | $9,979,941 | $(40,476,255) |
Total change in net assets | $120,445,325 | $63,958,725 |
Net assets | ||
At beginning of period | 1,069,555,775 | 1,005,597,050 |
At end of period | $1,190,001,100 | $1,069,555,775 |
Financial Statements | Financial Highlights |
Initial Class | Year ended | ||||
12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $25.06 | $22.58 | $17.60 | $18.60 | $15.38 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.04 | $0.06 | $0.11 | $0.13 | $0.11 |
Net realized and unrealized gain (loss) | 6.24 | 4.80 | 6.71 | 0.16 | 4.16 |
Total from investment operations | $6.28 | $4.86 | $6.82 | $0.29 | $4.27 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.07) | $(0.11) | $(0.13) | $(0.12) | $(0.12) |
From net realized gain | (3.70) | (2.27) | (1.71) | (1.17) | (0.93) |
Total distributions declared to shareholders | $(3.77) | $(2.38) | $(1.84) | $(1.29) | $(1.05) |
Net asset value, end of period (x) | $27.57 | $25.06 | $22.58 | $17.60 | $18.60 |
Total return (%) (k)(r)(s)(x) | 25.97 | 22.53 | 39.95 | 0.81 | 28.42 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.78 | 0.79 | 0.79 | 0.80 | 0.81 |
Expenses after expense reductions | 0.76 | 0.78 | 0.78 | 0.79 | 0.80 |
Net investment income (loss) | 0.15 | 0.27 | 0.51 | 0.65 | 0.66 |
Portfolio turnover | 15 | 33 | 22 | 23 | 21 |
Net assets at end of period (000 omitted) | $714,524 | $641,267 | $603,369 | $493,783 | $562,471 |
Service Class | Year ended | ||||
12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $24.67 | $22.27 | $17.38 | $18.38 | $15.21 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $(0.03) | $0.00(w) | $0.05 | $0.08 | $0.07 |
Net realized and unrealized gain (loss) | 6.14 | 4.72 | 6.62 | 0.16 | 4.10 |
Total from investment operations | $6.11 | $4.72 | $6.67 | $0.24 | $4.17 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.01) | $(0.05) | $(0.07) | $(0.07) | $(0.07) |
From net realized gain | (3.70) | (2.27) | (1.71) | (1.17) | (0.93) |
Total distributions declared to shareholders | $(3.71) | $(2.32) | $(1.78) | $(1.24) | $(1.00) |
Net asset value, end of period (x) | $27.07 | $24.67 | $22.27 | $17.38 | $18.38 |
Total return (%) (k)(r)(s)(x) | 25.66 | 22.20 | 39.58 | 0.58 | 28.10 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 1.03 | 1.04 | 1.04 | 1.05 | 1.06 |
Expenses after expense reductions | 1.01 | 1.03 | 1.03 | 1.04 | 1.05 |
Net investment income (loss) | (0.10) | 0.02 | 0.26 | 0.40 | 0.41 |
Portfolio turnover | 15 | 33 | 22 | 23 | 21 |
Net assets at end of period (000 omitted) | $475,478 | $428,289 | $402,228 | $319,950 | $369,950 |
(d) | Per share data is based on average shares outstanding. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(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 | $1,081,245,627 | $— | $— | $1,081,245,627 |
China | 27,451,483 | — | — | 27,451,483 |
Canada | 20,527,565 | — | — | 20,527,565 |
Ireland | 17,395,539 | — | — | 17,395,539 |
Germany | 16,421,193 | — | — | 16,421,193 |
France | 9,926,477 | — | — | 9,926,477 |
Taiwan | 8,504,593 | — | — | 8,504,593 |
Switzerland | — | 4,360,912 | — | 4,360,912 |
Mutual Funds | 4,764,975 | — | — | 4,764,975 |
Total | $1,186,237,452 | $4,360,912 | $— | $1,190,598,364 |
Year ended 12/31/21 | Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $6,118,487 | $9,714,474 |
Long-term capital gains | 142,417,355 | 86,726,336 |
Total distributions | $148,535,842 | $96,440,810 |
As of 12/31/21 | |
Cost of investments | $525,752,043 |
Gross appreciation | 671,386,477 |
Gross depreciation | (6,540,156) |
Net unrealized appreciation (depreciation) | $664,846,321 |
Undistributed ordinary income | 16,601,169 |
Undistributed long-term capital gain | 115,033,560 |
Other temporary differences | 6,007 |
Total distributable earnings (loss) | $796,487,057 |
Year ended 12/31/21 | Year ended 12/31/20 | ||
Initial Class | $89,257,028 | $58,026,955 | |
Service Class | 59,278,814 | 38,413,855 | |
Total | $148,535,842 | $96,440,810 |
Up to $1 billion | 0.75% |
In excess of $1 billion | 0.65% |
Year ended 12/31/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 301,917 | $8,152,931 | 536,906 | $11,499,519 | |
Service Class | 638,576 | 16,756,952 | 1,322,375 | 28,371,478 | |
940,493 | $24,909,883 | 1,859,281 | $39,870,997 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | 3,431,643 | $89,257,028 | 2,538,362 | $58,026,955 | |
Service Class | 2,318,295 | 59,278,814 | 1,705,766 | 38,413,855 | |
5,749,938 | $148,535,842 | 4,244,128 | $96,440,810 | ||
Shares reacquired | |||||
Initial Class | (3,409,834) | $(91,134,490) | (4,205,948) | $(94,166,872) | |
Service Class | (2,755,500) | (72,331,294) | (3,730,825) | (82,621,190) | |
(6,165,334) | $(163,465,784) | (7,936,773) | $(176,788,062) | ||
Net change | |||||
Initial Class | 323,726 | $6,275,469 | (1,130,680) | $(24,640,398) | |
Service Class | 201,371 | 3,704,472 | (702,684) | (15,835,857) | |
525,097 | $9,979,941 | (1,833,364) | $(40,476,255) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $8,618,176 | $165,467,990 | $169,321,190 | $— | $(1) | $4,764,975 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $3,325 | $— |
MFS Massachusetts Investors Growth Stock Portfolio:
February 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 | 135 | 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 | 135 | Private investor | N/A | |||||
Steven E. Buller (age 70) | Trustee | February 2014 | 135 | Private investor | N/A | |||||
John A. Caroselli (age 67) | Trustee | March 2017 | 135 | Private investor; JC Global Advisors, LLC (management consulting), President (since 2015) | N/A | |||||
Maureen R. Goldfarb (age 66) | Trustee | January 2009 | 135 | Private investor | N/A | |||||
Peter D. Jones (age 66) | Trustee | January 2019 | 135 | Private investor | N/A | |||||
James W. Kilman, Jr. (age 60) | Trustee | January 2019 | 135 | 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) | |||||
Clarence Otis, Jr. (age 65) | Trustee | March 2017 | 135 | Private investor | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director | |||||
Maryanne L. Roepke (age 65) | Trustee | May 2014 | 135 | Private investor | N/A | |||||
Laurie J. Thomsen (age 64) | Trustee | March 2005 | 135 | 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 | 135 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | ||||
Kino Clark (k) (age 53) | Assistant Treasurer | January 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
John W. Clark, Jr. (k) (age 54) | Assistant Treasurer | April 2017 | 135 | Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head - Treasurer's Office (until February 2017) | ||||
Thomas H. Connors (k) (age 62) | Assistant Secretary and Assistant Clerk | September 2012 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
David L. DiLorenzo (k) (age 53) | President | July 2005 | 135 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 54) | Secretary and Clerk | April 2017 | 135 | 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 48) | Assistant Secretary and Assistant Clerk | June 2006 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
Amanda S. Mooradian (k) (age 42) | Assistant Secretary and Assistant Clerk | September 2018 | 135 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 51) | Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Kasey L. Phillips (k) (age 51) | Assistant Treasurer | September 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 47) | Assistant Secretary and Assistant Clerk | October 2014 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Martin J. Wolin (k) (age 54) | Chief Compliance Officer | July 2015 | 135 | Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer | ||||
James O. Yost (k) (age 61) | Treasurer | September 1990 | 135 | 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 | Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 |
Portfolio Manager(s) | |
Jeffrey Constantino Joseph Skorski |
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. |
International Portfolio
1 | |
2 | |
3 | |
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8 | |
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15 | |
16 | |
18 | |
24 | |
25 | |
28 | |
31 | |
31 | |
31 | |
31 | |
31 | |
32 |
Roche Holding AG | 3.4% |
Nestle S.A. | 3.3% |
Novo Nordisk A.S., “B” | 3.3% |
Schneider Electric SE | 2.9% |
Linde PLC | 2.6% |
LVMH Moet Hennessy Louis Vuitton SE | 2.4% |
Aon PLC | 2.1% |
Hitachi Ltd. | 1.7% |
Diageo PLC | 1.7% |
BNP Paribas | 1.6% |
Capital Goods | 24.2% |
Financial Services | 19.3% |
Technology | 14.3% |
Health Care | 12.2% |
Consumer Cyclicals | 10.3% |
Consumer Staples | 9.0% |
Energy | 6.5% |
Telecommunications/Cable Television | 2.9% |
Japan | 19.0% |
Switzerland | 13.4% |
France | 9.9% |
United Kingdom | 9.4% |
United States | 9.4% |
Germany | 9.1% |
Hong Kong | 4.2% |
Netherlands | 4.1% |
China | 3.7% |
Other Countries | 17.8% |
Euro | 30.7% |
Japanese Yen | 19.0% |
Swiss Franc | 13.4% |
British Pound Sterling | 10.0% |
United States Dollar | 7.4% |
Hong Kong Dollar | 7.3% |
Danish Krone | 3.7% |
Australian Dollar | 2.4% |
Canadian Dollar | 2.1% |
Other Currencies | 4.0% |
(k) | The sectors set forth above and the associated portfolio composition are based on MFS’ own custom sector classification methodology. |
(o) | Less than 0.1%. |
(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 and Other. |
(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 | 5-yr | 10-yr |
Initial Class | 5/06/98 | 11.57% | 12.19% | 8.38% |
Service Class | 8/24/01 | 11.27% | 11.90% | 8.11% |
MSCI EAFE Index (net div) (f) | 11.26% | 9.55% | 8.03% |
(f) | Source: FactSet Research Systems Inc. |
(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. |
July 1, 2021 through December 31, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 7/01/21 | Ending Account Value 12/31/21 | Expenses Paid During Period (p) 7/01/21-12/31/21 | |
Initial Class | Actual | 0.95% | $1,000.00 | $1,037.36 | $4.88 |
Hypothetical (h) | 0.95% | $1,000.00 | $1,020.42 | $4.84 | |
Service Class | Actual | 1.20% | $1,000.00 | $1,035.71 | $6.16 |
Hypothetical (h) | 1.20% | $1,000.00 | $1,019.16 | $6.11 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 98.7% | ||||
Aerospace & Defense – 0.6% | ||||
MTU Aero Engines Holding AG | 15,851 | $ 3,222,763 | ||
Airlines – 0.4% | ||||
Ryanair Holdings PLC, ADR (a) | 21,777 | $ 2,228,440 | ||
Alcoholic Beverages – 2.2% | ||||
Diageo PLC | 161,928 | $ 8,846,010 | ||
Kirin Holdings Co. Ltd. | 163,600 | 2,626,873 | ||
$11,472,883 | ||||
Apparel Manufacturers – 4.9% | ||||
Adidas AG | 23,131 | $ 6,667,930 | ||
Burberry Group PLC | 59,265 | 1,457,965 | ||
Compagnie Financiere Richemont S.A. | 35,397 | 5,285,591 | ||
LVMH Moet Hennessy Louis Vuitton SE | 15,360 | 12,713,306 | ||
$26,124,792 | ||||
Automotive – 2.4% | ||||
Bridgestone Corp. | 65,100 | $ 2,800,834 | ||
Continental AG (a) | 25,522 | 2,705,477 | ||
Koito Manufacturing Co. Ltd. | 70,700 | 3,743,050 | ||
Toyota Industries Corp. | 40,400 | 3,227,645 | ||
$12,477,006 | ||||
Brokerage & Asset Managers – 1.8% | ||||
Euronext N.V. | 54,530 | $ 5,665,017 | ||
Hong Kong Exchanges & Clearing Ltd. | 61,700 | 3,603,463 | ||
$9,268,480 | ||||
Business Services – 0.9% | ||||
Nomura Research Institute Ltd. | 115,200 | $ 4,942,293 | ||
Computer Software – 3.0% | ||||
Cadence Design Systems, Inc. (a) | 19,927 | $ 3,713,397 | ||
NAVER Corp. (a) | 10,524 | 3,350,859 | ||
NetEase.com, Inc., ADR | 84,704 | 8,621,173 | ||
$15,685,429 | ||||
Computer Software - Systems – 6.3% | ||||
Amadeus IT Group S.A. (a) | 57,171 | $ 3,850,727 | ||
Constellation Software, Inc. | 2,836 | 5,261,806 | ||
EPAM Systems, Inc. (a) | 7,564 | 5,056,156 | ||
Fujitsu Ltd. | 36,700 | 6,294,801 | ||
Hitachi Ltd. | 169,800 | 9,196,331 | ||
Samsung Electronics Co. Ltd. | 52,012 | 3,425,901 | ||
$33,085,722 | ||||
Construction – 1.2% | ||||
Techtronic Industries Co. Ltd. | 312,000 | $ 6,209,951 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Consumer Products – 1.7% | ||||
Kao Corp. | 60,700 | $ 3,176,157 | ||
Reckitt Benckiser Group PLC | 69,472 | 5,963,625 | ||
$9,139,782 | ||||
Consumer Services – 1.0% | ||||
Carsales.com Ltd. | 82,544 | $ 1,506,777 | ||
Persol Holdings Co. Ltd. | 72,700 | 2,110,910 | ||
SEEK Ltd. | 72,885 | 1,738,241 | ||
$5,355,928 | ||||
Electrical Equipment – 4.2% | ||||
Legrand S.A. | 55,270 | $ 6,474,970 | ||
Schneider Electric SE | 79,246 | 15,559,607 | ||
$22,034,577 | ||||
Electronics – 2.7% | ||||
Kyocera Corp. | 49,700 | $ 3,105,224 | ||
NXP Semiconductors N.V. | 22,914 | 5,219,351 | ||
Taiwan Semiconductor Manufacturing Co. Ltd. | 260,804 | 5,797,320 | ||
$14,121,895 | ||||
Energy - Independent – 0.4% | ||||
Santos Ltd. | 443,707 | $ 2,036,988 | ||
Energy - Integrated – 2.4% | ||||
Capricorn Energy PLC | 705,588 | $ 1,798,357 | ||
Eni S.p.A. | 332,034 | 4,589,916 | ||
Galp Energia SGPS S.A., “B” | 359,107 | 3,483,344 | ||
Idemitsu Kosan Co. Ltd. | 104,000 | 2,655,377 | ||
$12,526,994 | ||||
Food & Beverages – 3.9% | ||||
Danone S.A. | 54,618 | $ 3,394,546 | ||
Nestle S.A. | 123,263 | 17,239,505 | ||
$20,634,051 | ||||
Food & Drug Stores – 0.3% | ||||
Sugi Holdings Co. Ltd. | 23,800 | $ 1,442,111 | ||
Gaming & Lodging – 0.8% | ||||
Flutter Entertainment PLC (a) | 19,212 | $ 3,058,118 | ||
Whitbread PLC (a) | 29,727 | 1,205,097 | ||
$4,263,215 | ||||
Insurance – 4.9% | ||||
AIA Group Ltd. | 696,200 | $ 7,017,758 | ||
Aon PLC | 37,083 | 11,145,667 | ||
Beazley PLC (a) | 160,115 | 1,010,582 | ||
Hiscox Ltd. | 157,180 | 1,831,360 | ||
Zurich Insurance Group AG | 11,146 | 4,884,494 | ||
$25,889,861 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Internet – 1.5% | ||||
Scout24 AG | 35,224 | $ 2,469,281 | ||
Tencent Holdings Ltd. | 89,700 | 5,254,851 | ||
$7,724,132 | ||||
Leisure & Toys – 0.9% | ||||
Prosus N.V. | 31,742 | $ 2,657,246 | ||
Yamaha Corp. | 43,000 | 2,119,534 | ||
$4,776,780 | ||||
Machinery & Tools – 6.4% | ||||
Daikin Industries Ltd. | 34,500 | $ 7,824,959 | ||
GEA Group AG | 98,971 | 5,418,706 | ||
Kubota Corp. | 286,000 | 6,348,787 | ||
Ritchie Bros. Auctioneers, Inc. | 51,113 | 3,127,916 | ||
Schindler Holding AG | 15,757 | 4,227,634 | ||
SMC Corp. | 9,400 | 6,340,485 | ||
Weir Group PLC | 28,503 | 660,301 | ||
$33,948,788 | ||||
Major Banks – 6.2% | ||||
BNP Paribas | 125,617 | $ 8,691,016 | ||
Credit Suisse Group AG | 365,689 | 3,546,906 | ||
ING Groep N.V. | 338,741 | 4,721,207 | ||
Mitsubishi UFJ Financial Group, Inc. | 786,700 | 4,273,744 | ||
NatWest Group PLC | 1,683,394 | 5,142,705 | ||
UBS Group AG | 344,328 | 6,180,032 | ||
$32,555,610 | ||||
Medical Equipment – 3.3% | ||||
ConvaTec Group PLC | 872,822 | $ 2,281,890 | ||
Koninklijke Philips N.V. | 134,954 | 5,034,181 | ||
QIAGEN N.V. (a) | 114,930 | 6,404,161 | ||
Terumo Corp. | 85,600 | 3,616,587 | ||
$17,336,819 | ||||
Metals & Mining – 0.9% | ||||
Glencore PLC | 922,613 | $ 4,682,386 | ||
Natural Gas - Distribution – 0.5% | ||||
China Resources Gas Group Ltd. | 442,000 | $ 2,496,951 | ||
Natural Gas - Pipeline – 0.8% | ||||
APA Group | 233,012 | $ 1,705,450 | ||
TC Energy Corp. | 55,805 | 2,595,366 | ||
$4,300,816 | ||||
Other Banks & Diversified Financials – 4.1% | ||||
AIB Group PLC (a) | 748,581 | $ 1,823,834 | ||
HDFC Bank Ltd. | 319,755 | 6,363,643 | ||
Julius Baer Group Ltd. | 65,547 | 4,380,217 | ||
Macquarie Group Ltd. | 37,648 | 5,626,071 | ||
Visa, Inc., “A” | 16,903 | 3,663,049 | ||
$21,856,814 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Pharmaceuticals – 8.9% | ||||
Bayer AG | 51,874 | $ 2,775,751 | ||
Kyowa Kirin Co. Ltd. | 178,000 | 4,851,169 | ||
Novo Nordisk A.S., “B” | 153,841 | 17,198,618 | ||
Roche Holding AG | 43,678 | 18,106,076 | ||
Santen Pharmaceutical Co. Ltd. | 334,200 | 4,087,798 | ||
$47,019,412 | ||||
Printing & Publishing – 0.7% | ||||
Wolters Kluwer N.V. | 31,915 | $ 3,764,328 | ||
Real Estate – 2.3% | ||||
ESR Cayman Ltd. (a) | 835,200 | $ 2,822,363 | ||
Grand City Properties S.A. | 170,112 | 4,043,881 | ||
LEG Immobilien SE | 39,720 | 5,548,642 | ||
$12,414,886 | ||||
Restaurants – 0.6% | ||||
Yum China Holdings, Inc. | 64,497 | $ 3,214,531 | ||
Specialty Chemicals – 8.5% | ||||
Akzo Nobel N.V. | 47,653 | $ 5,235,407 | ||
Croda International PLC | 52,821 | 7,235,381 | ||
Kansai Paint Co. Ltd. | 98,000 | 2,129,879 | ||
Linde PLC | 39,813 | 13,870,088 | ||
Nitto Denko Corp. | 53,000 | 4,096,062 | ||
Sika AG | 16,553 | 6,871,078 | ||
Symrise AG | 38,996 | 5,784,920 | ||
$45,222,815 | ||||
Specialty Stores – 0.6% | ||||
Ocado Group PLC (a) | 53,311 | $ 1,210,830 | ||
ZOZO, Inc. | 67,300 | 2,100,382 | ||
$3,311,212 | ||||
Telecommunications - Wireless – 2.5% | ||||
Advanced Info Service Public Co. Ltd. | 361,100 | $ 2,486,244 | ||
Cellnex Telecom S.A. | 55,159 | 3,202,534 | ||
KDDI Corp. | 155,300 | 4,538,978 | ||
SoftBank Group Corp. | 62,900 | 2,971,387 | ||
$13,199,143 | ||||
Telephone Services – 0.4% | ||||
Hellenic Telecommunications Organization S.A. | 124,086 | $ 2,296,374 | ||
Tobacco – 1.2% | ||||
British American Tobacco PLC | 178,071 | $ 6,588,500 | ||
Utilities - Electric Power – 2.4% | ||||
CLP Holdings Ltd. | 262,500 | $ 2,651,073 | ||
E.ON SE | 217,213 | 3,015,044 | ||
Iberdrola S.A. | 423,128 | 4,958,413 | ||
Orsted A/S | 16,468 | 2,114,732 | ||
$12,739,262 | ||||
Total Common Stocks (Identified Cost, $383,360,465) | $521,612,720 |
Issuer | Strike Price | First Exercise | Shares/Par | Value ($) |
Warrants – 0.0% | ||||
Apparel Manufacturers – 0.0% | ||||
Compagnie Financiere Richemont S.A. (1 share for 2 warrants, Expiration 12/04/23) (a) (Identified Cost, $0) | CHF 67.00 | 11/20/23 | 72,208 | $ 79,245 |
Issuer | ||||
Investment Companies (h) – 1.1% | ||||
Money Market Funds – 1.1% | ||||
MFS Institutional Money Market Portfolio, 0.07% (v) (Identified Cost, $5,858,779) | 5,858,779 | $ 5,858,779 | ||
Other Assets, Less Liabilities – 0.2% | 1,289,823 | |||
Net Assets – 100.0% | $528,840,567 |
(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 $5,858,779 and $521,691,965, 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 |
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: | |
CHF | Swiss Franc |
Financial Statements | Statement of Assets and Liabilities |
At 12/31/21Assets | |
Investments in unaffiliated issuers, at value (identified cost, $383,360,465) | $521,691,965 |
Investments in affiliated issuers, at value (identified cost, $5,858,779) | 5,858,779 |
Foreign currency, at value (identified cost, $174,896) | 174,896 |
Receivables for | |
Investments sold | 64,719 |
Fund shares sold | 213,601 |
Dividends | 1,755,532 |
Other assets | 2,451 |
Total assets | $529,761,943 |
Liabilities | |
Payables for | |
Investments purchased | $281,720 |
Fund shares reacquired | 253,255 |
Payable to affiliates | |
Investment adviser | 25,641 |
Administrative services fee | 445 |
Shareholder servicing costs | 123 |
Distribution and/or service fees | 1,934 |
Payable for independent Trustees' compensation | 196 |
Deferred country tax expense payable | 236,056 |
Accrued expenses and other liabilities | 122,006 |
Total liabilities | $921,376 |
Net assets | $528,840,567 |
Net assets consist of | |
Paid-in capital | $379,877,464 |
Total distributable earnings (loss) | 148,963,103 |
Net assets | $528,840,567 |
Shares of beneficial interest outstanding | 27,763,809 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $387,369,927 | 20,254,566 | $19.13 |
Service Class | 141,470,640 | 7,509,243 | 18.84 |
Financial Statements | Statement of Operations |
Year ended 12/31/21 | |
Net investment income (loss) | |
Income | |
Dividends | $10,810,097 |
Income on securities loaned | 9,234 |
Dividends from affiliated issuers | 1,918 |
Other | 62 |
Foreign taxes withheld | (995,819) |
Total investment income | $9,825,492 |
Expenses | |
Management fee | $4,641,084 |
Distribution and/or service fees | 328,609 |
Shareholder servicing costs | 20,448 |
Administrative services fee | 77,892 |
Independent Trustees' compensation | 9,292 |
Custodian fee | 111,084 |
Shareholder communications | 20,476 |
Audit and tax fees | 61,961 |
Legal fees | 2,649 |
Miscellaneous | 26,656 |
Total expenses | $5,300,151 |
Reduction of expenses by investment adviser | (65,497) |
Net expenses | $5,234,654 |
Net investment income (loss) | $4,590,838 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers (net of $15,334 country tax) | $6,949,114 |
Foreign currency | (8,186) |
Net realized gain (loss) | $6,940,928 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers (net of $72,142 increase in deferred country tax) | $44,396,489 |
Translation of assets and liabilities in foreign currencies | (51,911) |
Net unrealized gain (loss) | $44,344,578 |
Net realized and unrealized gain (loss) | $51,285,506 |
Change in net assets from operations | $55,876,344 |
Financial Statements | Statements of Changes in Net Assets |
Year ended | ||
12/31/21 | 12/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $4,590,838 | $4,289,206 |
Net realized gain (loss) | 6,940,928 | 24,915,531 |
Net unrealized gain (loss) | 44,344,578 | 24,197,204 |
Change in net assets from operations | $55,876,344 | $53,401,941 |
Total distributions to shareholders | $(28,944,311) | $(22,406,392) |
Change in net assets from fund share transactions | $11,923,218 | $2,253,946 |
Total change in net assets | $38,855,251 | $33,249,495 |
Net assets | ||
At beginning of period | 489,985,316 | 456,735,821 |
At end of period | $528,840,567 | $489,985,316 |
Financial Statements | Financial Highlights |
Initial Class | Year ended | ||||
12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $18.14 | $16.96 | $14.07 | $17.05 | $13.54 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.18 | $0.17 | $0.31 | $0.25 | $0.22 |
Net realized and unrealized gain (loss) | 1.91 | 1.92 | 3.51 | (2.56) | 3.59 |
Total from investment operations | $2.09 | $2.09 | $3.82 | $(2.31) | $3.81 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.16) | $(0.34) | $(0.24) | $(0.25) | $(0.30) |
From net realized gain | (0.94) | (0.57) | (0.69) | (0.42) | — |
Total distributions declared to shareholders | $(1.10) | $(0.91) | $(0.93) | $(0.67) | $(0.30) |
Net asset value, end of period (x) | $19.13 | $18.14 | $16.96 | $14.07 | $17.05 |
Total return (%) (k)(r)(s)(x) | 11.57 | 12.95 | 28.04 | (14.12) | 28.29 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.96 | 0.98 | 0.99 | 0.98 | 1.00 |
Expenses after expense reductions | 0.95 | 0.96 | 0.96 | 0.97 | 0.99 |
Net investment income (loss) | 0.96 | 1.06 | 1.99 | 1.51 | 1.44 |
Portfolio turnover | 23 | 28 | 24 | 25 | 27 |
Net assets at end of period (000 omitted) | $387,370 | $369,243 | $356,291 | $302,386 | $341,613 |
Service Class | Year ended | ||||
12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $17.90 | $16.74 | $13.90 | $16.84 | $13.38 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.13 | $0.14 | $0.26 | $0.21 | $0.19 |
Net realized and unrealized gain (loss) | 1.88 | 1.89 | 3.47 | (2.53) | 3.52 |
Total from investment operations | $2.01 | $2.03 | $3.73 | $(2.32) | $3.71 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.13) | $(0.30) | $(0.20) | $(0.20) | $(0.25) |
From net realized gain | (0.94) | (0.57) | (0.69) | (0.42) | — |
Total distributions declared to shareholders | $(1.07) | $(0.87) | $(0.89) | $(0.62) | $(0.25) |
Net asset value, end of period (x) | $18.84 | $17.90 | $16.74 | $13.90 | $16.84 |
Total return (%) (k)(r)(s)(x) | 11.27 | 12.71 | 27.67 | (14.32) | 27.90 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 1.22 | 1.23 | 1.24 | 1.23 | 1.25 |
Expenses after expense reductions | 1.20 | 1.21 | 1.21 | 1.22 | 1.24 |
Net investment income (loss) | 0.69 | 0.87 | 1.65 | 1.27 | 1.26 |
Portfolio turnover | 23 | 28 | 24 | 25 | 27 |
Net assets at end of period (000 omitted) | $141,471 | $120,742 | $100,445 | $66,789 | $80,634 |
(d) | Per share data is based on average shares outstanding. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(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: | ||||
Japan | $100,621,357 | $— | $— | $100,621,357 |
Switzerland | 17,318,750 | 53,482,028 | — | 70,800,778 |
France | 52,498,462 | — | — | 52,498,462 |
United Kingdom | 49,914,989 | — | — | 49,914,989 |
Germany | 35,960,351 | 12,096,205 | — | 48,056,556 |
United States | 42,667,708 | — | — | 42,667,708 |
Hong Kong | 22,304,608 | — | — | 22,304,608 |
Netherlands | 21,412,369 | — | — | 21,412,369 |
China | 19,587,506 | — | — | 19,587,506 |
Other Countries | 55,426,448 | 38,401,184 | — | 93,827,632 |
Mutual Funds | 5,858,779 | — | — | 5,858,779 |
Total | $423,571,327 | $103,979,417 | $— | $527,550,744 |
Year ended 12/31/21 | Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $6,016,271 | $8,553,340 |
Long-term capital gains | 22,928,040 | 13,853,052 |
Total distributions | $28,944,311 | $22,406,392 |
As of 12/31/21 | |
Cost of investments | $392,343,732 |
Gross appreciation | 153,414,500 |
Gross depreciation | (18,207,488) |
Net unrealized appreciation (depreciation) | $135,207,012 |
Undistributed ordinary income | 10,499,955 |
Undistributed long-term capital gain | 3,270,374 |
Other temporary differences | (14,238) |
Total distributable earnings (loss) | $148,963,103 |
Year ended 12/31/21 | Year ended 12/31/20 | ||
Initial Class | $21,510,111 | $18,500,918 | |
Service Class | 7,434,200 | 3,905,474 | |
Total | $28,944,311 | $22,406,392 |
Up to $1 billion | 0.90% |
In excess of $1 billion and up to $2 billion | 0.80% |
In excess of $2 billion | 0.70% |
Year ended 12/31/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 1,505,288 | $28,286,847 | 1,877,609 | $27,251,600 | |
Service Class | 1,163,923 | 21,941,026 | 3,047,104 | 51,507,599 | |
2,669,211 | $50,227,873 | 4,924,713 | $78,759,199 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | 1,130,326 | $21,510,111 | 1,129,482 | $18,500,918 | |
Service Class | 396,279 | 7,434,200 | 241,377 | 3,905,474 | |
1,526,605 | $28,944,311 | 1,370,859 | $22,406,392 | ||
Shares reacquired | |||||
Initial Class | (2,738,021) | $(52,292,691) | (3,661,504) | $(57,937,592) | |
Service Class | (796,926) | (14,956,275) | (2,541,987) | (40,974,053) | |
(3,534,947) | $(67,248,966) | (6,203,491) | $(98,911,645) | ||
Net change | |||||
Initial Class | (102,407) | $(2,495,733) | (654,413) | $(12,185,074) | |
Service Class | 763,276 | 14,418,951 | 746,494 | 14,439,020 | |
660,869 | $11,923,218 | 92,081 | $2,253,946 |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $3,433,184 | $110,325,649 | $107,900,054 | $— | $— | $5,858,779 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $1,918 | $— |
February 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 | 135 | 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 | 135 | Private investor | N/A | |||||
Steven E. Buller (age 70) | Trustee | February 2014 | 135 | Private investor | N/A | |||||
John A. Caroselli (age 67) | Trustee | March 2017 | 135 | Private investor; JC Global Advisors, LLC (management consulting), President (since 2015) | N/A | |||||
Maureen R. Goldfarb (age 66) | Trustee | January 2009 | 135 | Private investor | N/A | |||||
Peter D. Jones (age 66) | Trustee | January 2019 | 135 | Private investor | N/A | |||||
James W. Kilman, Jr. (age 60) | Trustee | January 2019 | 135 | 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) | |||||
Clarence Otis, Jr. (age 65) | Trustee | March 2017 | 135 | Private investor | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director | |||||
Maryanne L. Roepke (age 65) | Trustee | May 2014 | 135 | Private investor | N/A | |||||
Laurie J. Thomsen (age 64) | Trustee | March 2005 | 135 | 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 | 135 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | ||||
Kino Clark (k) (age 53) | Assistant Treasurer | January 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
John W. Clark, Jr. (k) (age 54) | Assistant Treasurer | April 2017 | 135 | Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head - Treasurer's Office (until February 2017) | ||||
Thomas H. Connors (k) (age 62) | Assistant Secretary and Assistant Clerk | September 2012 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
David L. DiLorenzo (k) (age 53) | President | July 2005 | 135 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 54) | Secretary and Clerk | April 2017 | 135 | 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 48) | Assistant Secretary and Assistant Clerk | June 2006 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
Amanda S. Mooradian (k) (age 42) | Assistant Secretary and Assistant Clerk | September 2018 | 135 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 51) | Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Kasey L. Phillips (k) (age 51) | Assistant Treasurer | September 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 47) | Assistant Secretary and Assistant Clerk | October 2014 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Martin J. Wolin (k) (age 54) | Chief Compliance Officer | July 2015 | 135 | Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer | ||||
James O. Yost (k) (age 61) | Treasurer | September 1990 | 135 | 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 | Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 |
Portfolio Manager(s) | |
Victoria Higley Camille Humphries-Lee |
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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U.S. Treasury Securities | 37.4% |
Investment Grade Corporates | 22.4% |
Collateralized Debt Obligations | 14.9% |
High Yield Corporates | 14.5% |
Emerging Markets Bonds | 9.2% |
Commercial Mortgage-Backed Securities | 8.0% |
Municipal Bonds | 3.8% |
Asset-Backed Securities | 1.5% |
Residential Mortgage-Backed Securities | 0.3% |
U.S. Government Agencies | 0.1% |
Mortgage-Backed Securities | 0.1% |
AAA | 6.0% |
AA | 5.2% |
A | 10.8% |
BBB | 30.0% |
BB | 12.2% |
B | 7.3% |
CCC | 1.7% |
CC (o) | 0.0% |
C (o) | 0.0% |
D (o) | 0.0% |
U.S. Government | 18.9% |
Federal Agencies | 0.1% |
Not Rated | 20.0% |
Non-Fixed Income | 0.1% |
Cash & Cash Equivalents | 6.1% |
Other | (18.4)% |
Average Duration (d) | 6.2 |
Average Effective Maturity (m) | 6.8 yrs. |
(a) | For all securities other than those specifically described below, ratings are assigned to underlying securities utilizing ratings from Moody’s, Fitch, and Standard & Poor’s rating agencies and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. If none of the 3 rating agencies above assign a rating, but the security is rated by DBRS Morningstar, then the DBRS Morningstar rating is assigned. If none of the 4 rating agencies listed above rate the security, but the security is rated by the Kroll Bond Rating Agency (KBRA), then the KBRA rating is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). Securities rated BBB or higher are considered investment grade. All ratings are subject to change. U.S. Government includes securities issued by the U.S. Department of the Treasury. Federal Agencies includes rated and unrated U.S. Agency fixed-income securities, U.S. Agency mortgage-backed securities, and collateralized mortgage obligations of U.S. Agency mortgage-backed securities. Not Rated includes fixed income securities and fixed income derivatives that have not been rated by any rating agency. Non-Fixed Income includes equity securities (including convertible bonds and equity derivatives) and/or commodity-linked derivatives. The fund may or may not have held all of these instruments on this date. The fund is not rated by these agencies. |
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value due to the interest rate move. |
(i) | For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining each instrument’s effective maturity for purposes of calculating the fund’s dollar-weighted average effective maturity, MFS uses the instrument’s stated maturity or, if applicable, an earlier date on which MFS believes it is probable that a maturity-shortening device (such as a put, pre-refunding or prepayment) will cause the instrument to be repaid. Such an earlier date can be substantially shorter than the instrument’s stated maturity. |
(o) | Less than 0.1%. |
(v) | For purposes of this presentation, market value of fixed income and/or equity derivatives, if any, is included in Cash & Cash Equivalents. |
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value. |
(r) | Securities rated “BBB”, “Baa”, or higher are considered investment grade; securities rated “BB”, “Ba”, or below are considered non-investment grade. Ratings are assigned to underlying securities utilizing ratings from Moody's, Fitch, and Standard & Poor's and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the |
(y) | A yield curve graphically depicts the yields of different maturity bonds of the same credit quality and type; a normal yield curve is upward sloping, with short-term rates lower than long-term rates. |
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr |
Initial Class | 5/06/98 | 0.47% | 5.01% | 4.61% |
Service Class | 8/24/01 | 0.10% | 4.73% | 4.35% |
Bloomberg U.S. Aggregate Bond Index (f) | (1.54)% | 3.57% | 2.90% |
(f) | Source: FactSet Research Systems Inc. |
(a) | Source: Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg or Bloomberg's licensors own all proprietary rights in the Bloomberg Indices. Bloomberg neither approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith. |
July 1, 2021 through December 31, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 7/01/21 | Ending Account Value 12/31/21 | Expenses Paid During Period (p) 7/01/21-12/31/21 | |
Initial Class | Actual | 0.75% | $1,000.00 | $1,002.76 | $3.79 |
Hypothetical (h) | 0.75% | $1,000.00 | $1,021.42 | $3.82 | |
Service Class | Actual | 1.00% | $1,000.00 | $1,000.99 | $5.04 |
Hypothetical (h) | 1.00% | $1,000.00 | $1,020.16 | $5.09 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). In addition to the fees and expenses which the fund bears directly, the fund indirectly bears a pro rata share of the fees and expenses of the underlying funds in which the fund invests. If these indirect costs were included, your costs would have been higher. |
Issuer | Shares/Par | Value ($) | ||
Bonds – 81.1% | ||||
Aerospace & Defense – 0.8% | ||||
Boeing Co., 2.196%, 2/04/2026 | $ | 202,000 | $ 201,952 | |
Boeing Co., 2.95%, 2/01/2030 | 43,000 | 43,809 | ||
Boeing Co., 5.705%, 5/01/2040 | 34,000 | 43,670 | ||
Boeing Co., 5.805%, 5/01/2050 | 33,000 | 44,686 | ||
$334,117 | ||||
Asset-Backed & Securitized – 24.7% | ||||
Allegro CLO Ltd., 2014-1RA, “C”, FLR, 3.129% (LIBOR - 3mo. + 3%), 10/21/2028 (n) | $ | 250,000 | $ 246,025 | |
Allegro CLO Ltd., 2015-1X, “CR”, FLR, 1.773% (LIBOR - 3mo. + 1.65%), 7/25/2027 (n) | 250,000 | 250,047 | ||
Arbor Realty Trust, Inc., CLO, 2018-FL1, “A”, FLR, 1.259% (LIBOR - 1mo. + 1.15%), 6/15/2028 (n) | 260,000 | 259,919 | ||
Arbor Realty Trust, Inc., CLO, 2020-FL1, “D”, FLR, 2.614% (LIBOR - 1mo. + 2.45%), 2/15/2035 (n) | 232,000 | 231,565 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL1, “D”, FLR, 3.059% (LIBOR - 1mo. + 2.95%), 12/15/2035 (n) | 100,000 | 99,750 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL3, “C”, FLR, 1.959% (LIBOR - 1mo. + 1.85%), 8/15/2034 (n) | 200,000 | 199,136 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL3, “D”, FLR, 2.31% (LIBOR - 1mo. + 2.2%), 8/15/2034 (n) | 100,000 | 99,259 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL4, “D”, FLR, 2.99% (LIBOR - 1mo. + 2.9%), 11/15/2036 (n) | 256,500 | 256,179 | ||
AREIT CRE Trust, 2019-CRE3, “D”, FLR, 2.814% (LIBOR - 1mo. + 2.65%), 9/14/2036 (n) | 271,000 | 268,446 | ||
Babson CLO Ltd., 2013-IIA, “BR”, FLR, 1.381% (LIBOR - 3mo. + 1.25%), 1/20/2028 (n) | 250,000 | 250,000 | ||
Bancorp Commercial Mortgage Trust, 2018-CRE3, “D”, FLR, 2.81% (LIBOR - 1mo. + 2.7%), 1/15/2033 (n) | 224,743 | 223,665 | ||
Bancorp Commercial Mortgage Trust, 2019-CRE5, “D”, FLR, 2.459% (LIBOR - 1mo. + 2.35%), 3/15/2036 (n) | 237,302 | 235,553 | ||
Bancorp Commercial Mortgage Trust, 2019-CRE6, “D”, FLR, 2.464% (LIBOR - 1mo. + 2.54%), 9/15/2036 (n) | 265,000 | 263,871 | ||
Bayview Financial Revolving Mortgage Loan Trust, FLR, 1.701% (LIBOR - 1mo. + 1.6%), 12/28/2040 (n) | 74,538 | 82,968 | ||
BSPRT Issuer Ltd., 2019-FL5, “C”, FLR, 2.109% (LIBOR - 1mo. + 2%), 5/15/2029 (n) | 245,000 | 243,868 | ||
Business Jet Securities LLC, 2020-1A, “A”, 2.981%, 11/15/2035 (n) | 69,440 | 69,335 | ||
Capital Automotive, 2020-1A, “B1”, REIT, 4.17%, 2/15/2050 (n) | 110,227 | 113,204 | ||
CHCP 2021-FL1 Ltd., “B”, FLR, 1.814% (LIBOR - 1mo. + 1.65%), 2/15/2038 (n) | 250,000 | 249,081 | ||
CHCP 2021-FL1 Ltd., “C”, FLR, 2.264% (LIBOR - 1mo. + 2.1%), 2/15/2038 (n) | 100,000 | 99,748 | ||
CLNC Ltd., 2019-FL1, “C”, FLR, 2.564% (LIBOR - 1mo. + 2.4%), 8/20/2035 (n) | 265,000 | 263,528 | ||
Commercial Equipment Finance LLC, 2021-A, “A”, 2.05%, 2/16/2027 (n) | 165,752 | 165,365 | ||
Commercial Mortgage Pass-Through Certificates, 2019-BN24, “A3”, 2.96%, 11/15/2062 | 134,719 | 142,659 | ||
Commercial Mortgage Pass-Through Certificates, 2020-BN28, “A4”, 1.844%, 3/15/2063 | 61,262 | 59,717 | ||
Commercial Mortgage Trust, 2015-PC1, “A5”, 3.902%, 7/10/2050 | 346,107 | 368,855 | ||
Crest Ltd., CDO, 7%, (0.001% cash or 7% PIK) 1/28/2040 (a)(p) | 686,262 | 7 | ||
Cutwater Ltd., 2015-1A, “BR”, FLR, 1.924% (LIBOR - 3mo. + 1.8%), 1/15/2029 (n) | 250,000 | 247,443 | ||
DT Auto Owner Trust, 2020-1A, “C”, 2.29%, 11/17/2025 (n) | 123,000 | 124,195 | ||
Exeter Automobile Receivables Trust, 2020-1A, 2.49%, 1/15/2025 (n) | 40,000 | 40,321 | ||
Flagship CLO, 2014-8A, “BRR”, FLR, 1.522% (LIBOR - 3mo. + 1.4%), 1/16/2026 (n) | 90,247 | 90,201 | ||
GS Mortgage Securities Trust, 2019-GSA1, “A4”, 3.047%, 11/10/2052 | 261,722 | 277,190 | ||
Invitation Homes Trust, 2018-SFR1, “C”, FLR, 1.359% (LIBOR - 1mo. + 1.25%), 3/17/2037 (n) | 129,981 | 129,790 | ||
KKR Real Estate Financial Trust, Inc., 2021-FL2, “D”, FLR, 2.308% (LIBOR - 1mo. + 2.2%), 2/15/2039 (n) | 163,000 | 162,804 | ||
LCCM 2021-FL2 Trust, “C”, FLR, 2.259% (LIBOR - 1mo. + 2.15%), 12/13/2038 (n) | 100,000 | 100,000 | ||
Lehman Brothers Commercial Conduit Mortgage Trust, 0.904%, 2/18/2030 (i) | 2,184 | 0 | ||
LoanCore Ltd., 2018-CRE1, “C”, FLR, 2.659% (LIBOR - 1mo. + 2.55%), 5/15/2028 (n) | 260,000 | 259,609 | ||
LoanCore Ltd., 2018-CRE1, “C”, FLR, 2.059% (LIBOR - 1mo. + 1.95%), 4/15/2034 (n) | 219,150 | 218,414 | ||
LoanCore Ltd., 2019-CRE2, “D”, FLR, 2.56% (LIBOR - 1mo. + 2.45%), 5/15/2036 (n) | 209,000 | 206,075 | ||
MF1 CLO Ltd., 2019-FL2, “A”, FLR, 2.514% (LIBOR - 1mo. + 2.35%), 12/25/2034 (n) | 259,000 | 258,938 | ||
MF1 CLO Ltd., 2021-FL6, “C”, FLR, 1.957%, 7/16/2036 (n) | 247,581 | 246,741 | ||
MF1 Multi-Family Housing Mortgage Loan Trust, 2020-FL4, “B”, FLR, 2.914% (LIBOR - 1mo. + 2.75%), 11/15/2035 (n) | 250,000 | 250,761 | ||
Morgan Stanley Capital I Trust, 2017-H1, “A5”, 3.53%, 6/15/2050 | 187,518 | 201,957 | ||
Neuberger Berman CLO Ltd., 2013-15A, “CR2”, FLR, 1.974% (LIBOR - 3mo. + 1.85%), 10/15/2029 (n) | 250,000 | 249,269 | ||
Oaktree CLO Ltd., 2019-1A, “CR”, FLR, 2.478% (LIBOR - 3mo. + 2.35%), 4/22/2030 (n) | 263,644 | 262,696 | ||
Palmer Square Loan Funding Ltd., 2020-1A, “B”, FLR, 2.059% (LIBOR - 3mo. + 1.9%), 2/20/2028 (n) | 250,000 | 245,688 | ||
Parallel Ltd., 2015-1A, “DR”, FLR, 2.681% (LIBOR - 3mo. + 2.55%), 7/20/2027 (n) | 250,000 | 249,825 | ||
Race Point CLO Ltd., 2013-8A, “CR2”, FLR, 2.209% (LIBOR - 3mo. + 2.05%), 2/20/2030 (n) | 250,000 | 250,049 | ||
ReadyCap Commercial Mortgage Trust, 2021-FL7, “D”, FLR, 3.052% (LIBOR - 1mo. + 2.95%), 11/25/2036 (z) | 120,000 | 119,777 | ||
Securitized Term Auto Receivable Trust, 2019-CRTA, “C”, 2.849%, 3/25/2026 (n) | 41,040 | 41,504 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Asset-Backed & Securitized – continued | ||||
UBS Commercial Mortgage Trust, 2017-C1, “A4”, 3.544%, 11/15/2050 | $ | 251,247 | $ 271,221 | |
UBS Commercial Mortgage Trust, 2017-C7, “A4”, 3.679%, 12/15/2050 | 155,000 | 167,889 | ||
UBS Commercial Mortgage Trust, 2019-C17, “A4”, 2.921%, 10/15/2052 | 197,844 | 207,216 | ||
Veros Auto Receivables Trust, 2020-1, “A”, 1.67%, 9/15/2023 (n) | 4,519 | 4,521 | ||
Voya CLO Ltd., 2012-4A, “C1R3”, FLR, 3.423% (LIBOR - 3mo. + 3.3%), 10/15/2030 (n) | 250,000 | 246,197 | ||
Wells Fargo Commercial Mortgage Trust, 2019-C54, “A4”, 3.146%, 12/15/2052 | 167,746 | 179,319 | ||
Wind River CLO Ltd., 2015-2A, “CR”, FLR, 1.823% (LIBOR - 3mo. + 1.7%), 10/15/2027 (n) | 250,000 | 250,312 | ||
$ 10,301,672 | ||||
Automotive – 0.8% | ||||
Hyundai Capital America, 6.375%, 4/08/2030 (n) | $ | 250,000 | $ 315,107 | |
Broadcasting – 0.3% | ||||
Discovery, Inc., 4.65%, 5/15/2050 | $ | 95,000 | $ 111,445 | |
Brokerage & Asset Managers – 1.2% | ||||
E*TRADE Financial Corp., 4.5%, 6/20/2028 | $ | 217,000 | $ 244,145 | |
Intercontinental Exchange, Inc., 2.1%, 6/15/2030 | 101,000 | 100,355 | ||
Raymond James Financial, 4.65%, 4/01/2030 | 134,000 | 155,381 | ||
$499,881 | ||||
Business Services – 0.6% | ||||
Global Payments, Inc., 2.9%, 5/15/2030 | $ | 120,000 | $ 122,178 | |
NXP Semiconductors N.V., 3.4%, 5/01/2030 (n) | 35,000 | 37,300 | ||
RELX Capital, Inc., 3%, 5/22/2030 | 76,000 | 79,675 | ||
$239,153 | ||||
Cable TV – 0.6% | ||||
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 3.9%, 6/01/2052 | $ | 176,000 | $ 176,487 | |
Time Warner Cable, Inc., 4.5%, 9/15/2042 | 77,000 | 83,946 | ||
$260,433 | ||||
Chemicals – 0.5% | ||||
Sasol Financing (USA) LLC, 4.375%, 9/18/2026 | $ | 200,000 | $ 201,250 | |
Computer Software – 0.4% | ||||
Dell International LLC/EMC Corp., 5.3%, 10/01/2029 | $ | 149,000 | $ 174,657 | |
Conglomerates – 0.8% | ||||
Westinghouse Air Brake Technologies Corp., 4.95%, 9/15/2028 | $ | 304,000 | $ 345,560 | |
Consumer Services – 0.8% | ||||
Expedia Group, Inc., 3.25%, 2/15/2030 | $ | 175,000 | $ 178,588 | |
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2026 (n) | 46,000 | 38,979 | ||
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2029 (n) | 132,000 | 96,705 | ||
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2031 (n) | 46,000 | 30,738 | ||
$345,010 | ||||
Electronics – 0.8% | ||||
Broadcom, Inc., 4.3%, 11/15/2032 | $ | 96,000 | $ 107,883 | |
Broadcom, Inc., 3.187%, 11/15/2036 (n) | 245,000 | 244,573 | ||
$352,456 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Emerging Market Quasi-Sovereign – 1.7% | ||||
Huarong Finance 2019 Co. Ltd. (People's Republic of China), 3.25%, 11/13/2024 | $ | 200,000 | $ 198,250 | |
Ipoteka Bank (Republic of Uzbekistan), 5.5%, 11/19/2025 | 200,000 | 203,124 | ||
Office Cherifien des Phosphates S.A. (Kingdom of Morocco), 3.75%, 6/23/2031 (n) | 200,000 | 194,080 | ||
Petroleos Mexicanos, 5.95%, 1/28/2031 | 108,000 | 104,946 | ||
$700,400 | ||||
Emerging Market Sovereign – 2.3% | ||||
Dominican Republic, 4.875%, 9/23/2032 (n) | $ | 150,000 | $ 152,437 | |
Government of Ukraine, GDP Linked Bond, 0%, 5/31/2040 | 138,000 | 125,442 | ||
Oriental Republic of Uruguay, 8.5%, 3/15/2028 | UYU | 4,753,000 | 105,449 | |
Republic of Chile, 5%, 10/01/2028 (n) | CLP | 60,000,000 | 68,013 | |
Republic of Cote d'Ivoire, 4.875%, 1/30/2032 (n) | EUR | 100,000 | 109,369 | |
Republic of Kenya, 8%, 5/22/2032 | $ | 200,000 | 218,120 | |
Republic of Romania, 2%, 4/14/2033 (n) | EUR | 69,000 | 71,511 | |
Republic of South Africa, 8.25%, 3/31/2032 | ZAR | 1,732,000 | 98,039 | |
$948,380 | ||||
Energy - Independent – 0.6% | ||||
Diamondback Energy, Inc., 4.4%, 3/24/2051 | $ | 60,000 | $ 68,773 | |
Leviathan Bond Ltd., 6.75%, 6/30/2030 (n) | 175,000 | 187,743 | ||
$256,516 | ||||
Energy - Integrated – 0.1% | ||||
Cenovus Energy, Inc., 3.75%, 2/15/2052 | $ | 50,000 | $ 50,122 | |
Financial Institutions – 2.3% | ||||
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 6.5%, 7/15/2025 | $ | 150,000 | $ 171,411 | |
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 3.65%, 7/21/2027 | 195,000 | 205,495 | ||
Avolon Holdings Funding Ltd., 3.25%, 2/15/2027 (n) | 195,000 | 196,362 | ||
Avolon Holdings Funding Ltd., 2.75%, 2/21/2028 (n) | 194,000 | 190,355 | ||
Shriram Transport Finance Co. Ltd., 4.4%, 3/13/2024 (n) | 200,000 | 202,500 | ||
$966,123 | ||||
Food & Beverages – 1.1% | ||||
Anheuser-Busch InBev Worldwide, Inc., 4.439%, 10/06/2048 | $ | 92,491 | $ 110,547 | |
Bacardi Ltd., 5.15%, 5/15/2038 (n) | 115,000 | 142,054 | ||
Indofood CBP, 3.541%, 4/27/2032 | 200,000 | 201,504 | ||
$454,105 | ||||
Gaming & Lodging – 0.7% | ||||
GLP Capital LP/GLP Financing II, Inc., 4%, 1/15/2030 | $ | 118,000 | $ 124,849 | |
GLP Capital LP/GLP Financing II, Inc., 4%, 1/15/2031 | 45,000 | 48,015 | ||
Marriott International, Inc., 4.625%, 6/15/2030 | 63,000 | 70,872 | ||
Marriott International, Inc., 2.85%, 4/15/2031 | 61,000 | 60,813 | ||
$304,549 | ||||
Industrial – 0.5% | ||||
Arabian Centres Sukuk II Ltd., 5.625%, 10/07/2026 | $ | 200,000 | $ 197,320 | |
Insurance - Property & Casualty – 1.6% | ||||
Allied World Assurance Co. Holdings Ltd., 4.35%, 10/29/2025 | $ | 191,000 | $ 204,940 | |
Aon Corp., 4.5%, 12/15/2028 | 115,000 | 130,878 | ||
Fairfax Financial Holdings Ltd., 4.85%, 4/17/2028 | 283,000 | 314,787 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Insurance - Property & Casualty – continued | ||||
Fairfax Financial Holdings Ltd., 3.375%, 3/03/2031 | $ | 15,000 | $ 15,440 | |
$666,045 | ||||
Machinery & Tools – 0.4% | ||||
CNH Industrial Capital LLC, 3.85%, 11/15/2027 | $ | 145,000 | $ 157,840 | |
Major Banks – 2.9% | ||||
Bank of America Corp., 4.271% to 7/23/2028, FLR (LIBOR - 3mo. + 1.31%) to 7/23/2029 | $ | 61,000 | $ 68,011 | |
Bank of New York Mellon Corp., 4.7% to 9/20/2025, FLR (CMT - 5yr. + 4.358%) to 9/20/2070 | 200,000 | 213,350 | ||
Barclays PLC, 4.375%, 1/12/2026 | 200,000 | 218,640 | ||
Deutsche Bank, 2.311% to 11/16/2026, FLR (SOFR + 1.219%) to 11/16/2027 | 150,000 | 149,933 | ||
HSBC Holdings PLC, 4.7% to 9/09/2031, FLR (CMT - 1yr. + 3.25%) to 9/09/2169 | 200,000 | 200,000 | ||
JPMorgan Chase & Co., 2.956% to 5/13/2030, FLR (SOFR + 2.515%) to 5/13/2031 | 81,000 | 83,865 | ||
JPMorgan Chase & Co., 3.882% to 7/24/2037, FLR (LIBOR - 3mo. + 1.36%) to 7/24/2038 | 83,000 | 94,205 | ||
UBS Group AG, 4.375% to 2/10/2031, FLR (CMT - 1yr. + 3.313%) to 8/10/2069 (n) | 200,000 | 197,560 | ||
$1,225,564 | ||||
Medical & Health Technology & Services – 1.5% | ||||
ProMedica Toledo Hospital, “B”, 5.325%, 11/15/2028 | $ | 239,000 | $ 267,830 | |
ProMedica Toledo Hospital, “B”, AGM, 5.75%, 11/15/2038 | 89,000 | 103,856 | ||
Tower Health, 4.451%, 2/01/2050 | 270,000 | 244,350 | ||
$616,036 | ||||
Metals & Mining – 0.2% | ||||
Glencore Funding LLC, 2.85%, 4/27/2031 (n) | $ | 88,000 | $ 86,986 | |
Midstream – 3.1% | ||||
Cheniere Corpus Christi Holdings LLC, 3.7%, 11/15/2029 | $ | 263,000 | $ 281,714 | |
Cheniere Corpus Christi Holdings LLC, 2.742%, 12/31/2039 (n) | 81,000 | 79,023 | ||
Enbridge, Inc., 3.125%, 11/15/2029 | 150,000 | 157,080 | ||
Enbridge, Inc., 2.5%, 8/01/2033 | 170,000 | 166,845 | ||
Galaxy Pipeline Assets Bidco Ltd., 2.625%, 3/31/2036 (n) | 200,000 | 195,398 | ||
MPLX LP, 4.5%, 4/15/2038 | 199,000 | 222,851 | ||
Plains All American Pipeline LP, 3.8%, 9/15/2030 | 135,000 | 140,973 | ||
Sabine Pass Liquefaction LLC, 4.5%, 5/15/2030 | 53,000 | 59,785 | ||
$1,303,669 | ||||
Mortgage-Backed – 0.1% | ||||
Fannie Mae, 6.5%, 4/01/2032 | $ | 10,540 | $ 12,044 | |
Fannie Mae, 3%, 2/25/2033 (i) | 40,987 | 4,031 | ||
Fannie Mae, 5.5%, 9/01/2034 | 5,214 | 5,833 | ||
$21,908 | ||||
Municipals – 3.7% | ||||
Bridgeview, IL, Stadium and Redevelopment Projects, AAC, 5.14%, 12/01/2036 | $ | 195,000 | $ 208,598 | |
Escambia County, FL, Health Facilities Authority Rev. (Baptist Health Care Corp.), “B”, AGM, 3.607%, 8/15/2040 | 270,000 | 286,728 | ||
New Jersey Economic Development Authority State Pension Funding Rev., “A”, NPFG, 7.425%, 2/15/2029 | 177,000 | 222,459 | ||
New Jersey Economic Development Authority State Pension Funding Rev., Capital Appreciation, “B”, AGM, 0%, 2/15/2023 | 350,000 | 346,577 | ||
Port Beaumont, TX, Industrial Development Authority Facility Taxable Rev. (Jefferson Gulf Coast Energy Project), “B”, 4.1%, 1/01/2028 (n) | 245,000 | 237,236 | ||
Puerto Rico Electric Power Authority Rev., “A”, 5%, 7/01/2042 (a)(d) | 5,000 | 4,981 | ||
Puerto Rico Electric Power Authority Rev., “ZZ”, 5%, 7/01/2018 (a)(d) | 75,000 | 73,219 | ||
Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., Capital Appreciation, “2019A-1”, 4.55%, 7/01/2040 | 174,000 | 177,110 | ||
$1,556,908 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Natural Gas - Distribution – 0.5% | ||||
ENN Clean Energy International Investment Ltd., 3.375%, 5/12/2026 (n) | $ | 200,000 | $ 198,826 | |
Oils – 0.5% | ||||
FS Luxembourg S.à r.l., 10%, 12/15/2025 (n) | $ | 200,000 | $ 219,252 | |
Other Banks & Diversified Financials – 0.5% | ||||
Mizrahi Tefahot Bank Ltd., 3.077% to 4/07/2026, FLR (CMT - 5yr. + 2.25%) to 4/07/2031 (n) | $ | 200,000 | $ 198,500 | |
Real Estate - Apartment – 0.2% | ||||
Mid-America Apartments LP, 2.75%, 3/15/2030 | $ | 82,000 | $ 84,917 | |
Real Estate - Office – 0.3% | ||||
Boston Properties, Inc., REIT, 2.55%, 4/01/2032 | $ | 147,000 | $ 145,901 | |
Retailers – 0.3% | ||||
Alimentation Couche-Tard, Inc., 2.95%, 1/25/2030 (n) | $ | 65,000 | $ 67,141 | |
Nordstrom, Inc., 2.3%, 4/08/2024 | 51,000 | 51,000 | ||
$118,141 | ||||
Supranational – 0.8% | ||||
Corporacion Andina de Fomento, 4.375%, 6/15/2022 | $ | 340,000 | $ 345,699 | |
Telecommunications - Wireless – 1.3% | ||||
American Tower Corp., REIT, 3.55%, 7/15/2027 | $ | 60,000 | $ 64,091 | |
Cellnex Finance Co. S.A., 3.875%, 7/07/2041 (n) | 200,000 | 191,264 | ||
Crown Castle International Corp., 4.15%, 7/01/2050 | 75,000 | 84,339 | ||
T-Mobile USA, Inc., 4.375%, 4/15/2040 | 173,000 | 197,771 | ||
$537,465 | ||||
Tobacco – 0.6% | ||||
B.A.T. Capital Corp., 3.215%, 9/06/2026 | $ | 231,000 | $ 240,388 | |
Transportation - Services – 0.5% | ||||
Delhi International Airport Ltd., 6.125%, 10/31/2026 | $ | 200,000 | $ 204,600 | |
U.S. Government Agencies and Equivalents – 0.1% | ||||
Small Business Administration, 4.77%, 4/01/2024 | $ | 5,737 | $ 5,898 | |
Small Business Administration, 4.99%, 9/01/2024 | 5,019 | 5,145 | ||
Small Business Administration, 4.86%, 1/01/2025 | 6,667 | 6,881 | ||
Small Business Administration, 4.625%, 2/01/2025 | 9,834 | 10,144 | ||
Small Business Administration, 5.11%, 8/01/2025 | 7,964 | 8,300 | ||
$36,368 | ||||
U.S. Treasury Obligations – 18.9% | ||||
U.S. Treasury Bonds, 1.375%, 11/15/2040 | $ | 900,000 | $ 820,195 | |
U.S. Treasury Bonds, 2.375%, 11/15/2049 | 770,000 | 845,857 | ||
U.S. Treasury Notes, 0.25%, 9/30/2023 (f) | 1,100,000 | 1,092,266 | ||
U.S. Treasury Notes, 0.375%, 10/31/2023 | 4,400,000 | 4,374,047 | ||
U.S. Treasury Notes, 0.25%, 9/30/2025 | 500,000 | 484,180 | ||
U.S. Treasury Notes, 0.875%, 6/30/2026 | 250,000 | 246,035 | ||
$7,862,580 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Utilities - Electric Power – 1.5% | ||||
FirstEnergy Corp., 5.35%, 7/15/2047 | $ | 270,000 | $ 320,964 | |
Jersey Central Power & Light Co., 2.75%, 3/01/2032 (n) | 34,000 | 34,456 | ||
Pacific Gas & Electric Co., 3%, 6/15/2028 | 44,000 | 44,319 | ||
Pacific Gas & Electric Co., 3.5%, 8/01/2050 | 250,000 | 231,591 | ||
$631,330 | ||||
Total Bonds (Identified Cost, $33,543,577) | $ 33,817,179 | |||
Investment Companies (h) – 12.8% | ||||
Bond Funds – 12.4% | ||||
MFS High Yield Pooled Portfolio (v) | 563,325 | $ 5,165,690 | ||
Money Market Funds – 0.4% | ||||
MFS Institutional Money Market Portfolio, 0.07% (v) | 201,300 | $ 201,300 | ||
Total Investment Companies (Identified Cost, $5,455,790) | $ 5,366,990 | |||
Other Assets, Less Liabilities – 6.1% | 2,525,706 | |||
Net Assets – 100.0% | $ 41,709,875 |
(a) | Non-income producing security. |
(d) | In default. |
(f) | All or a portion of the security has been segregated as collateral for open futures contracts. |
(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 $5,366,990 and $33,817,179, respectively. |
(i) | Interest only security for which the fund receives interest on notional principal (Par amount). Par amount shown is the notional principal and does not reflect the cost of the security. |
(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 $12,289,333, representing 29.5% 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. |
(z) | Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. The fund holds the following restricted securities: |
Restricted Securities | Acquisition Date | Cost | Value |
ReadyCap Commercial Mortgage Trust, 2021-FL7, “D”, FLR, 3.052% (LIBOR - 1mo. + 2.95%), 11/25/2036 | 11/12/21 | $120,000 | $119,777 |
% of Net assets | 0.3% |
The following abbreviations are used in this report and are defined: | |
AAC | Ambac Assurance Corp. |
AGM | Assured Guaranty Municipal |
CDO | Collateralized Debt Obligation |
CLO | Collateralized Loan Obligation |
CMT | Constant Maturity Treasury |
FLR | Floating Rate. Interest rate resets periodically based on the parenthetically disclosed reference rate plus a spread (if any). The period-end rate reported may not be the current rate. All reference rates are USD unless otherwise noted. |
LIBOR | London Interbank Offered Rate |
NPFG | National Public Finance Guarantee Corp. |
REIT | Real Estate Investment Trust |
SOFR | Secured Overnight Financing Rate |
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: | |
CLP | Chilean Peso |
EUR | Euro |
INR | Indian Rupee |
JPY | Japanese Yen |
MYR | Malaysian Ringgit |
UYU | Uruguayan Peso |
ZAR | South African Rand |
Derivative Contracts at 12/31/21 | ||||||
Forward Foreign Currency Exchange Contracts | ||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||
Asset Derivatives | ||||||
INR | 8,247,000 | USD | 108,011 | Barclays Bank PLC | 3/14/2022 | $ 2,088 |
MYR | 473,000 | USD | 111,132 | Barclays Bank PLC | 2/11/2022 | 2,215 |
USD | 190,944 | EUR | 164,955 | JPMorgan Chase Bank N.A. | 1/14/2022 | 3,106 |
USD | 91,748 | JPY | 10,531,000 | Brown Brothers Harriman | 1/04/2022 | 198 |
USD | 4,237,475 | JPY | 480,000,000 | State Street Bank Corp. | 1/04/2022 | 64,651 |
USD | 104,508 | ZAR | 1,608,571 | State Street Bank Corp. | 1/14/2022 | 3,701 |
$ 75,959 | ||||||
Liability Derivatives | ||||||
JPY | 92,460,000 | USD | 810,019 | HSBC Bank | 1/04/2022 | $ (6,229) |
JPY | 147,999,000 | USD | 1,297,270 | JPMorgan Chase Bank N.A. | 1/04/2022 | (10,658) |
$(16,887) |
Futures Contracts | ||||||
Description | Long/ Short | Currency | Contracts | Notional Amount | Expiration Date | Value/Unrealized Appreciation (Depreciation) |
Asset Derivatives | ||||||
Interest Rate Futures | ||||||
U.S. Treasury Ultra Bond | Long | USD | 18 | $3,548,250 | March – 2022 | $89,933 |
Liability Derivatives | ||||||
Interest Rate Futures | ||||||
U.S. Treasury Note 2 yr | Long | USD | 23 | $5,017,953 | March – 2022 | $(1,789) |
U.S. Treasury Ultra Note 10 yr | Short | USD | 5 | 732,187 | March – 2022 | (13,738) |
$(15,527) |
Financial Statements | Statement of Assets and Liabilities |
At 12/31/21Assets | |
Investments in unaffiliated issuers, at value (identified cost, $33,543,577) | $33,817,179 |
Investments in affiliated issuers, at value (identified cost, $5,455,790) | 5,366,990 |
Cash | 126,288 |
Foreign currency, at value (identified cost, $2,205,948) | 2,173,346 |
Receivables for | |
Forward foreign currency exchange contracts | 75,959 |
Net daily variation margin on open futures contracts | 27,920 |
Investments sold | 390 |
Fund shares sold | 12,658 |
Interest | 193,771 |
Receivable from investment adviser | 6,829 |
Other assets | 459 |
Total assets | $41,801,789 |
Liabilities | |
Payables for | |
Forward foreign currency exchange contracts | $16,887 |
Investments purchased | 2,274 |
Fund shares reacquired | 2,741 |
Payable to affiliates | |
Administrative services fee | 96 |
Shareholder servicing costs | 69 |
Distribution and/or service fees | 76 |
Payable for independent Trustees' compensation | 59 |
Accrued expenses and other liabilities | 69,712 |
Total liabilities | $91,914 |
Net assets | $41,709,875 |
Net assets consist of | |
Paid-in capital | $40,995,648 |
Total distributable earnings (loss) | 714,227 |
Net assets | $41,709,875 |
Shares of beneficial interest outstanding | 4,258,240 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $36,162,628 | 3,687,697 | $9.81 |
Service Class | 5,547,247 | 570,543 | 9.72 |
Financial Statements | Statement of Operations |
Year ended 12/31/21 | |
Net investment income (loss) | |
Income | |
Interest | $982,371 |
Dividends from affiliated issuers | 344,952 |
Other | 511 |
Income on securities loaned | 23 |
Foreign taxes withheld | (234) |
Total investment income | $1,327,623 |
Expenses | |
Management fee | $219,045 |
Distribution and/or service fees | 14,374 |
Shareholder servicing costs | 12,268 |
Administrative services fee | 17,500 |
Independent Trustees' compensation | 3,037 |
Custodian fee | 12,415 |
Shareholder communications | 12,152 |
Audit and tax fees | 82,104 |
Legal fees | 199 |
Miscellaneous | 32,665 |
Total expenses | $405,759 |
Reduction of expenses by investment adviser | (61,852) |
Net expenses | $343,907 |
Net investment income (loss) | $983,716 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $584,844 |
Affiliated issuers | (467,135) |
Futures contracts | (131,172) |
Forward foreign currency exchange contracts | (36,705) |
Foreign currency | 481 |
Net realized gain (loss) | $(49,687) |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $(1,294,244) |
Affiliated issuers | 387,611 |
Futures contracts | 70,443 |
Forward foreign currency exchange contracts | 93,800 |
Translation of assets and liabilities in foreign currencies | (42,154) |
Net unrealized gain (loss) | $(784,544) |
Net realized and unrealized gain (loss) | $(834,231) |
Change in net assets from operations | $149,485 |
Financial Statements | Statements of Changes in Net Assets |
Year ended | ||
12/31/21 | 12/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $983,716 | $1,246,108 |
Net realized gain (loss) | (49,687) | 1,844,524 |
Net unrealized gain (loss) | (784,544) | 832,785 |
Change in net assets from operations | $149,485 | $3,923,417 |
Total distributions to shareholders | $(3,069,012) | $(1,603,085) |
Change in net assets from fund share transactions | $(2,634,018) | $(97,382) |
Total change in net assets | $(5,553,545) | $2,222,950 |
Net assets | ||
At beginning of period | 47,263,420 | 45,040,470 |
At end of period | $41,709,875 | $47,263,420 |
Financial Statements | Financial Highlights |
Initial Class | Year ended | ||||
12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $10.51 | $9.98 | $9.26 | $9.84 | $9.71 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.23 | $0.29 | $0.33 | $0.33 | $0.34 |
Net realized and unrealized gain (loss) | (0.17) | 0.63 | 0.74 | (0.52) | 0.26 |
Total from investment operations | $0.06 | $0.92 | $1.07 | $(0.19) | $0.60 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.33) | $(0.39) | $(0.35) | $(0.39) | $(0.47) |
From net realized gain | (0.43) | — | — | — | — |
Total distributions declared to shareholders | $(0.76) | $(0.39) | $(0.35) | $(0.39) | $(0.47) |
Net asset value, end of period (x) | $9.81 | $10.51 | $9.98 | $9.26 | $9.84 |
Total return (%) (k)(r)(s)(x) | 0.47 | 9.35 | 11.60 | (1.99) | 6.24 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions (h) | 0.89 | 0.89 | 1.01 | 1.03 | 1.02 |
Expenses after expense reductions (h) | 0.75 | 0.75 | 0.78 | 0.80 | 0.80 |
Net investment income (loss) | 2.28 | 2.83 | 3.32 | 3.42 | 3.39 |
Portfolio turnover | 72 | 112 | 104 | 59 | 72 |
Net assets at end of period (000 omitted) | $36,163 | $41,438 | $38,670 | $38,111 | $42,409 |
Service Class | Year ended | ||||
12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $10.43 | $9.90 | $9.19 | $9.75 | $9.63 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.21 | $0.26 | $0.30 | $0.30 | $0.31 |
Net realized and unrealized gain (loss) | (0.19) | 0.63 | 0.74 | (0.50) | 0.25 |
Total from investment operations | $0.02 | $0.89 | $1.04 | $(0.20) | $0.56 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.30) | $(0.36) | $(0.33) | $(0.36) | $(0.44) |
From net realized gain | (0.43) | — | — | — | — |
Total distributions declared to shareholders | $(0.73) | $(0.36) | $(0.33) | $(0.36) | $(0.44) |
Net asset value, end of period (x) | $9.72 | $10.43 | $9.90 | $9.19 | $9.75 |
Total return (%) (k)(r)(s)(x) | 0.10 | 9.11 | 11.29 | (2.11) | 5.88 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions (h) | 1.14 | 1.14 | 1.26 | 1.28 | 1.27 |
Expenses after expense reductions (h) | 1.00 | 1.00 | 1.03 | 1.05 | 1.05 |
Net investment income (loss) | 2.03 | 2.59 | 3.07 | 3.17 | 3.16 |
Portfolio turnover | 72 | 112 | 104 | 59 | 72 |
Net assets at end of period (000 omitted) | $5,547 | $5,825 | $6,371 | $6,614 | $7,287 |
(d) | Per share data is based on average shares outstanding. |
(h) | In addition to the fees and expenses which the fund bears directly, the fund indirectly bears a pro rata share of the fees and expenses of the underlying affiliated funds in which the fund invests. Accordingly, the expense ratio for the fund reflects only those fees and expenses borne directly by the fund. Because the underlying affiliated funds have varied expense and fee levels and the fund may own different proportions of the underlying affiliated funds at different times, the amount of fees and expenses incurred indirectly by the fund will vary. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(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 |
U.S. Treasury Bonds & U.S. Government Agencies & Equivalents | $— | $7,898,948 | $— | $7,898,948 |
Non - U.S. Sovereign Debt | — | 1,994,479 | — | 1,994,479 |
Municipal Bonds | — | 1,556,908 | — | 1,556,908 |
U.S. Corporate Bonds | — | 6,689,146 | — | 6,689,146 |
Residential Mortgage-Backed Securities | — | 151,698 | — | 151,698 |
Commercial Mortgage-Backed Securities | — | 3,344,910 | — | 3,344,910 |
Asset-Backed Securities (including CDOs) | — | 6,826,972 | — | 6,826,972 |
Foreign Bonds | — | 5,354,118 | — | 5,354,118 |
Mutual Funds | 5,366,990 | — | — | 5,366,990 |
Total | $5,366,990 | $33,817,179 | $— | $39,184,169 |
Other Financial Instruments | ||||
Futures Contracts – Assets | $89,933 | $— | $— | $89,933 |
Futures Contracts – Liabilities | (15,527) | — | — | (15,527) |
Forward Foreign Currency Exchange Contracts – Assets | — | 75,959 | — | 75,959 |
Forward Foreign Currency Exchange Contracts – Liabilities | — | (16,887) | — | (16,887) |
Fair Value (a) | |||
Risk | Derivative Contracts | Asset Derivatives | Liability Derivatives |
Interest Rate | Futures Contracts | $89,933 | $(15,527) |
Foreign Exchange | Forward Foreign Currency Exchange Contracts | 75,959 | (16,887) |
Total | $165,892 | $(32,414) |
Risk | Futures Contracts | Forward Foreign Currency Exchange Contracts |
Interest Rate | $(131,172) | $— |
Foreign Exchange | — | (36,705) |
Total | $(131,172) | $(36,705) |
Risk | Futures Contracts | Forward Foreign Currency Exchange Contracts |
Interest Rate | $70,443 | $— |
Foreign Exchange | — | 93,800 |
Total | $70,443 | $93,800 |
Year ended 12/31/21 | Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $2,283,010 | $1,603,085 |
Long-term capital gains | 786,002 | — |
Total distributions | $3,069,012 | $1,603,085 |
As of 12/31/21 | |
Cost of investments | $40,040,915 |
Gross appreciation | 783,584 |
Gross depreciation | (1,506,852) |
Net unrealized appreciation (depreciation) | $(723,268) |
Undistributed ordinary income | 1,145,526 |
Undistributed long-term capital gain | 325,023 |
Other temporary differences | (33,054) |
Total distributable earnings (loss) | $714,227 |
Year ended 12/31/21 | Year ended 12/31/20 | ||
Initial Class | $2,672,197 | $1,407,184 | |
Service Class | 396,815 | 195,901 | |
Total | $3,069,012 | $1,603,085 |
Up to $1 billion | 0.50% |
In excess of $1 billion | 0.45% |
Purchases | Sales | |
U.S. Government securities | $18,776,956 | $13,104,280 |
Non-U.S. Government securities | 12,161,048 | 22,465,666 |
Year ended 12/31/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 267,640 | $2,743,079 | 593,426 | $6,061,887 | |
Service Class | 64,759 | 661,621 | 75,762 | 764,983 | |
332,399 | $3,404,700 | 669,188 | $6,826,870 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | 271,288 | $2,672,197 | 138,366 | $1,407,184 | |
Service Class | 40,574 | 396,815 | 19,396 | 195,901 | |
311,862 | $3,069,012 | 157,762 | $1,603,085 | ||
Shares reacquired | |||||
Initial Class | (792,450) | $(8,158,937) | (665,666) | $(6,694,271) | |
Service Class | (93,346) | (948,793) | (180,269) | (1,833,066) | |
(885,796) | $(9,107,730) | (845,935) | $(8,527,337) | ||
Net change | |||||
Initial Class | (253,522) | $(2,743,661) | 66,126 | $774,800 | |
Service Class | 11,987 | 109,643 | (85,111) | (872,182) | |
(241,535) | $(2,634,018) | (18,985) | $(97,382) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS High Yield Pooled Portfolio | $6,184,285 | $1,648,291 | $2,587,362 | $(467,135) | $387,611 | $5,165,690 |
MFS Institutional Money Market Portfolio | 517,217 | 37,564,164 | 37,880,081 | — | — | 201,300 |
$6,701,502 | $39,212,455 | $40,467,443 | $(467,135) | $387,611 | $5,366,990 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS High Yield Pooled Portfolio | $344,507 | $— |
MFS Institutional Money Market Portfolio | 445 | — |
$344,952 | $— |
February 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 | 135 | 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 | 135 | Private investor | N/A | |||||
Steven E. Buller (age 70) | Trustee | February 2014 | 135 | Private investor | N/A | |||||
John A. Caroselli (age 67) | Trustee | March 2017 | 135 | Private investor; JC Global Advisors, LLC (management consulting), President (since 2015) | N/A | |||||
Maureen R. Goldfarb (age 66) | Trustee | January 2009 | 135 | Private investor | N/A | |||||
Peter D. Jones (age 66) | Trustee | January 2019 | 135 | Private investor | N/A | |||||
James W. Kilman, Jr. (age 60) | Trustee | January 2019 | 135 | 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) | |||||
Clarence Otis, Jr. (age 65) | Trustee | March 2017 | 135 | Private investor | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director | |||||
Maryanne L. Roepke (age 65) | Trustee | May 2014 | 135 | Private investor | N/A | |||||
Laurie J. Thomsen (age 64) | Trustee | March 2005 | 135 | 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 | 135 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | ||||
Kino Clark (k) (age 53) | Assistant Treasurer | January 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
John W. Clark, Jr. (k) (age 54) | Assistant Treasurer | April 2017 | 135 | Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head - Treasurer's Office (until February 2017) | ||||
Thomas H. Connors (k) (age 62) | Assistant Secretary and Assistant Clerk | September 2012 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
David L. DiLorenzo (k) (age 53) | President | July 2005 | 135 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 54) | Secretary and Clerk | April 2017 | 135 | 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 48) | Assistant Secretary and Assistant Clerk | June 2006 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
Amanda S. Mooradian (k) (age 42) | Assistant Secretary and Assistant Clerk | September 2018 | 135 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 51) | Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Kasey L. Phillips (k) (age 51) | Assistant Treasurer | September 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 47) | Assistant Secretary and Assistant Clerk | October 2014 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Martin J. Wolin (k) (age 54) | Chief Compliance Officer | July 2015 | 135 | Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer | ||||
James O. Yost (k) (age 61) | Treasurer | September 1990 | 135 | 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 | Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 |
Portfolio Manager(s) | |
Neeraj Arora Philipp Burgener David Cole Alexander Mackey Joshua Marston Michael Skatrud |
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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Microsoft Corp. | 11.9% |
Amazon.com, Inc. | 9.4% |
Alphabet, Inc., “A” | 8.8% |
Mastercard, Inc., “A” | 4.0% |
Adobe Systems, Inc. | 3.7% |
NVIDIA Corp. | 3.5% |
Booking Holdings, Inc. | 2.8% |
Global Payments, Inc. | 2.6% |
salesforce.com, inc. | 2.2% |
PayPal Holdings, Inc. | 2.1% |
Computer Software | 25.5% |
Internet | 12.6% |
Electronics | 12.4% |
Specialty Stores | 11.5% |
Business Services | 11.4% |
(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 | 10-yr |
Initial Class | 6/16/00 | 13.68% | 26.30% | 20.83% |
Service Class | 8/24/01 | 13.43% | 26.00% | 20.52% |
Standard & Poor's 500 Stock Index (f) | 28.71% | 18.47% | 16.55% |
Standard & Poor's North American Technology Sector Index (f) | 26.40% | 29.99% | 23.54% |
(f) | Source: FactSet Research Systems Inc. |
(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). |
July 1, 2021 through December 31, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 7/01/21 | Ending Account Value 12/31/21 | Expenses Paid During Period (p) 7/01/21-12/31/21 | |
Initial Class | Actual | 0.86% | $1,000.00 | $1,024.80 | $4.39 |
Hypothetical (h) | 0.86% | $1,000.00 | $1,020.87 | $4.38 | |
Service Class | Actual | 1.11% | $1,000.00 | $1,023.66 | $5.66 |
Hypothetical (h) | 1.11% | $1,000.00 | $1,019.61 | $5.65 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 97.7% | ||||
Broadcasting – 0.5% | ||||
Netflix, Inc. (a) | 1,069 | $ 644,008 | ||
Brokerage & Asset Managers – 2.2% | ||||
Charles Schwab Corp. | 11,464 | $ 964,122 | ||
CME Group, Inc. | 2,249 | 513,807 | ||
Morningstar, Inc. | 1,180 | 403,548 | ||
Tradeweb Markets, Inc. | 11,045 | 1,106,046 | ||
$2,987,523 | ||||
Business Services – 11.4% | ||||
Clarivate PLC (a) | 43,546 | $ 1,024,202 | ||
Endava PLC, ADR (a) | 11,580 | 1,944,514 | ||
Equifax, Inc. | 2,081 | 609,296 | ||
FleetCor Technologies, Inc. (a) | 4,222 | 945,052 | ||
Global Payments, Inc. | 25,608 | 3,461,691 | ||
MSCI, Inc. | 903 | 553,259 | ||
Paya, Inc. (a) | 81,915 | 519,341 | ||
PayPal Holdings, Inc. (a) | 14,810 | 2,792,870 | ||
TaskUs, Inc., “A” (a) | 10,955 | 591,132 | ||
Thoughtworks Holding, Inc. (a) | 38,950 | 1,044,250 | ||
Verisk Analytics, Inc., “A” | 3,417 | 781,570 | ||
WEX, Inc. (a) | 7,783 | 1,092,655 | ||
$15,359,832 | ||||
Cable TV – 0.2% | ||||
Charter Communications, Inc., “A” (a) | 361 | $ 235,361 | ||
Computer Software – 25.5% | ||||
Adobe Systems, Inc. (a) | 8,722 | $ 4,945,897 | ||
AppLovin Corp. (a) | 4,870 | 459,046 | ||
Asana, Inc. (a) | 7,074 | 527,367 | ||
Atlassian Corp. PLC, “A” (a) | 2,638 | 1,005,843 | ||
Autodesk, Inc. (a) | 5,556 | 1,562,292 | ||
Avalara, Inc. (a) | 2,686 | 346,790 | ||
Black Knight, Inc. (a) | 11,295 | 936,243 | ||
Couchbase, Inc. (a) | 2,931 | 73,158 | ||
DoubleVerify Holdings, Inc. (a) | 16,293 | 542,231 | ||
Eventbrite, Inc. (a) | 31,910 | 556,510 | ||
Freshworks, Inc, “A” (a) | 5,873 | 154,225 | ||
HashiCorp, Inc., “A” (a) | 1,403 | 127,729 | ||
Intuit, Inc. | 2,402 | 1,545,014 | ||
Microsoft Corp. (s) | 47,607 | 16,011,186 | ||
Paycor HCM, Inc. (a) | 19,358 | 557,704 | ||
Qualtrics International, “A” (a) | 7,511 | 265,889 | ||
RAKUS Co. Ltd. | 2,400 | 64,679 | ||
RingCentral, Inc. (a) | 5,552 | 1,040,167 | ||
salesforce.com, inc. (a) | 11,722 | 2,978,912 | ||
Topicus.com, Inc. (a) | 6,197 | 568,775 | ||
$34,269,657 | ||||
Computer Software - Systems – 9.4% | ||||
Apple, Inc. (s) | 8,954 | $ 1,589,962 | ||
Block, Inc., “A” (a) | 2,502 | 404,098 | ||
CDW Corp. | 2,111 | 432,291 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Computer Software - Systems – continued | ||||
Constellation Software, Inc. | 765 | $ 1,419,352 | ||
Descartes Systems Group, Inc. (a) | 11,200 | 926,316 | ||
EPAM Systems, Inc. (a) | 1,979 | 1,322,862 | ||
HubSpot, Inc. (a) | 1,723 | 1,135,715 | ||
Nuvei Corp. (a) | 12,647 | 821,802 | ||
Q2 Holdings, Inc. (a) | 6,799 | 540,113 | ||
ServiceNow, Inc. (a) | 3,631 | 2,356,918 | ||
TransUnion | 9,567 | 1,134,455 | ||
Wix.com Ltd. (a) | 3,353 | 529,070 | ||
$12,612,954 | ||||
Consumer Services – 3.4% | ||||
Booking Holdings, Inc. (a) | 1,573 | $ 3,773,989 | ||
Uber Technologies, Inc. (a) | 18,731 | 785,391 | ||
$4,559,380 | ||||
Electronics – 12.4% | ||||
Advanced Micro Devices (a)(s) | 16,975 | $ 2,442,703 | ||
KLA Corp. | 4,550 | 1,957,001 | ||
Lam Research Corp. | 3,181 | 2,287,616 | ||
Marvell Technology, Inc. | 23,039 | 2,015,682 | ||
Micron Technology, Inc. | 17,288 | 1,610,377 | ||
NVIDIA Corp. | 15,976 | 4,698,701 | ||
Xilinx, Inc. | 7,901 | 1,675,249 | ||
$16,687,329 | ||||
Insurance – 0.7% | ||||
Arthur J. Gallagher & Co. | 5,684 | $ 964,404 | ||
Internet – 12.6% | ||||
Alphabet, Inc., “A” (a)(s) | 4,087 | $ 11,840,202 | ||
Match Group, Inc. (a) | 3,223 | 426,242 | ||
Mercadolibre, Inc. (a) | 607 | 818,479 | ||
Meta Platforms, Inc., “A” (a) | 6,349 | 2,135,486 | ||
Pinterest, Inc. (a) | 5,859 | 212,975 | ||
Tencent Holdings Ltd. | 25,000 | 1,464,562 | ||
$16,897,946 | ||||
Leisure & Toys – 0.7% | ||||
Take-Two Interactive Software, Inc. (a) | 4,937 | $ 877,404 | ||
Machinery & Tools – 0.2% | ||||
Xometry, Inc., “A” (a) | 6,018 | $ 308,423 | ||
Medical & Health Technology & Services – 0.3% | ||||
Guardant Health, Inc. (a) | 3,660 | $ 366,073 | ||
Medical Equipment – 1.0% | ||||
Bio-Techne Corp. | 1,544 | $ 798,773 | ||
Maravai Lifesciences Holdings, Inc., “A” (a) | 12,581 | 527,144 | ||
$1,325,917 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Other Banks & Diversified Financials – 5.5% | ||||
Mastercard, Inc., “A” | 15,131 | $ 5,436,871 | ||
Visa, Inc., “A” | 9,207 | 1,995,249 | ||
$7,432,120 | ||||
Specialty Stores – 11.5% | ||||
ACV Auctions, Inc. (a) | 9,071 | $ 170,898 | ||
Amazon.com, Inc. (a)(s) | 3,790 | 12,637,149 | ||
Chewy, Inc., “A” (a) | 7,362 | 434,137 | ||
Farfetch Ltd., “A” (a) | 38,283 | 1,279,801 | ||
Pinduoduo, Inc., ADR (a) | 5,795 | 337,848 | ||
Sea Ltd., ADR (a) | 2,498 | 558,827 | ||
$15,418,660 | ||||
Utilities - Electric Power – 0.2% | ||||
Generac Holdings, Inc. (a) | 775 | $ 272,738 | ||
Total Common Stocks (Identified Cost, $76,680,983) | $ 131,219,729 | |||
Investment Companies (h) – 2.3% | ||||
Money Market Funds – 2.3% | ||||
MFS Institutional Money Market Portfolio, 0.07% (v) (Identified Cost, $3,118,400) | 3,118,400 | $ 3,118,400 | ||
Other Assets, Less Liabilities – 0.0% | 26,282 | |||
Net Assets – 100.0% | $ 134,364,411 |
(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 $3,118,400 and $131,219,729, respectively. | |||
(s) | Security or a portion of the security was pledged to cover collateral requirements for securities sold short. At December 31, 2021, the fund had no short sales outstanding. | |||
(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 |
Financial Statements | Statement of Assets and Liabilities |
At 12/31/21Assets | |
Investments in unaffiliated issuers, at value (identified cost, $76,680,983) | $131,219,729 |
Investments in affiliated issuers, at value (identified cost, $3,118,400) | 3,118,400 |
Deposits with brokers for | |
Securities sold short | 4,581 |
Receivables for | |
Investments sold | 39,297 |
Fund shares sold | 92,110 |
Dividends | 13,390 |
Other assets | 914 |
Total assets | $134,488,421 |
Liabilities | |
Payables for | |
Fund shares reacquired | $68,975 |
Payable to affiliates | |
Investment adviser | 5,455 |
Administrative services fee | 158 |
Shareholder servicing costs | 66 |
Distribution and/or service fees | 1,456 |
Accrued expenses and other liabilities | 47,900 |
Total liabilities | $124,010 |
Net assets | $134,364,411 |
Net assets consist of | |
Paid-in capital | $70,160,011 |
Total distributable earnings (loss) | 64,204,400 |
Net assets | $134,364,411 |
Shares of beneficial interest outstanding | 4,231,837 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $28,740,217 | 855,755 | $33.58 |
Service Class | 105,624,194 | 3,376,082 | 31.29 |
Financial Statements | Statement of Operations |
Year ended 12/31/21 | |
Net investment income (loss) | |
Income | |
Dividends | $290,970 |
Other | 6,877 |
Dividends from affiliated issuers | 1,334 |
Income on securities loaned | 218 |
Foreign taxes withheld | (718) |
Total investment income | $298,681 |
Expenses | |
Management fee | $925,292 |
Distribution and/or service fees | 232,898 |
Shareholder servicing costs | 11,169 |
Administrative services fee | 27,016 |
Independent Trustees' compensation | 3,932 |
Custodian fee | 10,807 |
Shareholder communications | 11,705 |
Audit and tax fees | 58,647 |
Legal fees | 697 |
Dividend and interest expense on securities sold short | 5,933 |
Interest expense and fees | 503 |
Miscellaneous | 27,829 |
Total expenses | $1,316,428 |
Reduction of expenses by investment adviser | (15,720) |
Net expenses | $1,300,708 |
Net investment income (loss) | $(1,002,027) |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $11,689,496 |
Written options | 68,052 |
Securities sold short | (595,062) |
Foreign currency | (303) |
Net realized gain (loss) | $11,162,183 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $4,968,309 |
Net realized and unrealized gain (loss) | $16,130,492 |
Change in net assets from operations | $15,128,465 |
Financial Statements | Statements of Changes in Net Assets |
Year ended | ||
12/31/21 | 12/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $(1,002,027) | $(580,483) |
Net realized gain (loss) | 11,162,183 | 7,550,353 |
Net unrealized gain (loss) | 4,968,309 | 24,235,909 |
Change in net assets from operations | $15,128,465 | $31,205,779 |
Total distributions to shareholders | $(6,980,065) | $— |
Change in net assets from fund share transactions | $21,904,529 | $4,958,901 |
Total change in net assets | $30,052,929 | $36,164,680 |
Net assets | ||
At beginning of period | 104,311,482 | 68,146,802 |
At end of period | $134,364,411 | $104,311,482 |
Financial Statements | Financial Highlights |
Initial Class | Year ended | ||||
12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $31.10 | $21.18 | $17.34 | $17.96 | $13.19 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $(0.21) | $(0.14) | $(0.09) | $(0.07) | $(0.05) |
Net realized and unrealized gain (loss) | 4.47 | 10.06 | 6.16 | 0.58 | 5.16 |
Total from investment operations | $4.26 | $9.92 | $6.07 | $0.51 | $5.11 |
Less distributions declared to shareholders | |||||
From net realized gain | $(1.78) | $— | $(2.23) | $(1.13) | $(0.34) |
Net asset value, end of period (x) | $33.58 | $31.10 | $21.18 | $17.34 | $17.96 |
Total return (%) (k)(r)(s)(x) | 13.68 | 46.84 | 36.16 | 1.73 | 39.00 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.88 | 0.94 | 0.97 | 0.94 | 0.88 |
Expenses after expense reductions | 0.87 | 0.93 | 0.96 | 0.93 | 0.88 |
Net investment income (loss) | (0.62) | (0.55) | (0.44) | (0.38) | (0.29) |
Portfolio turnover | 44 | 57 | 33 | 39 | 31 |
Net assets at end of period (000 omitted) | $28,740 | $28,768 | $19,336 | $17,056 | $27,659 |
Supplemental Ratios (%): | |||||
Ratios of expenses to average net assets after expense reductions excluding short sale expenses and interest expense and fees | 0.86 | 0.91 | 0.93 | 0.85 | 0.85 |
Service Class | Year ended | ||||
12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $29.15 | $19.91 | $16.44 | $17.11 | $12.61 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $(0.27) | $(0.19) | $(0.13) | $(0.12) | $(0.08) |
Net realized and unrealized gain (loss) | 4.19 | 9.43 | 5.83 | 0.58 | 4.92 |
Total from investment operations | $3.92 | $9.24 | $5.70 | $0.46 | $4.84 |
Less distributions declared to shareholders | |||||
From net realized gain | $(1.78) | $— | $(2.23) | $(1.13) | $(0.34) |
Net asset value, end of period (x) | $31.29 | $29.15 | $19.91 | $16.44 | $17.11 |
Total return (%) (k)(r)(s)(x) | 13.43 | 46.41 | 35.88 | 1.52 | 38.65 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 1.13 | 1.19 | 1.22 | 1.16 | 1.14 |
Expenses after expense reductions | 1.12 | 1.18 | 1.21 | 1.15 | 1.13 |
Net investment income (loss) | (0.87) | (0.81) | (0.69) | (0.61) | (0.53) |
Portfolio turnover | 44 | 57 | 33 | 39 | 31 |
Net assets at end of period (000 omitted) | $105,624 | $75,544 | $48,811 | $39,272 | $203,610 |
Supplemental Ratios (%): | |||||
Ratios of expenses to average net assets after expense reductions excluding short sale expenses and interest expense and fees | 1.11 | 1.16 | 1.18 | 1.07 | 1.10 |
(d) | Per share data is based on average shares outstanding. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(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 | $131,219,729 | $— | $— | $131,219,729 |
Mutual Funds | 3,118,400 | — | — | 3,118,400 |
Total | $134,338,129 | $— | $— | $134,338,129 |
Risk | Written Options |
Equity | $68,052 |
Year ended 12/31/21 | Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $1,121,029 | $— |
Long-term capital gains | 5,859,036 | — |
Total distributions | $6,980,065 | $— |
As of 12/31/21 | |
Cost of investments | $80,266,514 |
Gross appreciation | 57,052,625 |
Gross depreciation | (2,981,010) |
Net unrealized appreciation (depreciation) | $54,071,615 |
Undistributed ordinary income | 1,463,425 |
Undistributed long-term capital gain | 8,669,360 |
Total distributable earnings (loss) | $64,204,400 |
Year ended 12/31/21 | Year ended 12/31/20 | ||
Initial Class | $1,553,491 | $— | |
Service Class | 5,426,574 | — | |
Total | $6,980,065 | $— |
Up to $1 billion | 0.75% |
In excess of $1 billion | 0.70% |
Year ended 12/31/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 115,612 | $3,776,656 | 215,421 | $5,537,761 | |
Service Class | 1,413,331 | 43,584,533 | 1,213,821 | 29,404,672 | |
1,528,943 | $47,361,189 | 1,429,242 | $34,942,433 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | 46,249 | $1,553,491 | — | $— | |
Service Class | 173,262 | 5,426,574 | — | — | |
219,511 | $6,980,065 | — | $— | ||
Shares reacquired | |||||
Initial Class | (231,079) | $(7,709,675) | (203,201) | $(5,171,507) | |
Service Class | (802,009) | (24,727,050) | (1,074,446) | (24,812,025) | |
(1,033,088) | $(32,436,725) | (1,277,647) | $(29,983,532) |
Year ended 12/31/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Net change | |||||
Initial Class | (69,218) | $(2,379,528) | 12,220 | $366,254 | |
Service Class | 784,584 | 24,284,057 | 139,375 | 4,592,647 | |
715,366 | $21,904,529 | 151,595 | $4,958,901 |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $3,257,002 | $41,982,324 | $42,120,926 | $— | $— | $3,118,400 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $1,334 | $— |
February 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 | 135 | 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 | 135 | Private investor | N/A | |||||
Steven E. Buller (age 70) | Trustee | February 2014 | 135 | Private investor | N/A | |||||
John A. Caroselli (age 67) | Trustee | March 2017 | 135 | Private investor; JC Global Advisors, LLC (management consulting), President (since 2015) | N/A | |||||
Maureen R. Goldfarb (age 66) | Trustee | January 2009 | 135 | Private investor | N/A | |||||
Peter D. Jones (age 66) | Trustee | January 2019 | 135 | Private investor | N/A | |||||
James W. Kilman, Jr. (age 60) | Trustee | January 2019 | 135 | 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) | |||||
Clarence Otis, Jr. (age 65) | Trustee | March 2017 | 135 | Private investor | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director | |||||
Maryanne L. Roepke (age 65) | Trustee | May 2014 | 135 | Private investor | N/A | |||||
Laurie J. Thomsen (age 64) | Trustee | March 2005 | 135 | 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 | 135 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | ||||
Kino Clark (k) (age 53) | Assistant Treasurer | January 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
John W. Clark, Jr. (k) (age 54) | Assistant Treasurer | April 2017 | 135 | Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head - Treasurer's Office (until February 2017) | ||||
Thomas H. Connors (k) (age 62) | Assistant Secretary and Assistant Clerk | September 2012 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
David L. DiLorenzo (k) (age 53) | President | July 2005 | 135 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 54) | Secretary and Clerk | April 2017 | 135 | 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 48) | Assistant Secretary and Assistant Clerk | June 2006 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
Amanda S. Mooradian (k) (age 42) | Assistant Secretary and Assistant Clerk | September 2018 | 135 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 51) | Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Kasey L. Phillips (k) (age 51) | Assistant Treasurer | September 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 47) | Assistant Secretary and Assistant Clerk | October 2014 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Martin J. Wolin (k) (age 54) | Chief Compliance Officer | July 2015 | 135 | Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer | ||||
James O. Yost (k) (age 61) | Treasurer | September 1990 | 135 | 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 | Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 |
Portfolio Manager(s) | |
Matthew Sabel |
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. |
Money Market Portfolio
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22 |
A-1+ | 52.8% |
A-1 | 47.2% |
Other Assets Less Liabilities (o) | 0.0% |
0 - 7 days | 34.7% |
8 - 29 days | 14.7% |
30 - 59 days | 31.8% |
60 - 89 days | 18.8% |
90 - 365 days | 0.0% |
Other Assets Less Liabilities (o) | 0.0% |
(a) | Ratings are assigned to portfolio securities utilizing ratings from Moody’s, Fitch, and Standard & Poor’s rating agencies and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. Ratings are shown in the S&P scale. All ratings are subject to change. The fund is not rated by these agencies. |
(o) | Less than 0.1%. |
(u) | For purposes of this presentation, accrued interest, where applicable, is included. |
Share Class | Inception | 1-Year Total Return | Current 7-day yield |
Initial Class | 7/19/85 | 0.00% | 0.00% |
Service Class | 8/24/01 | 0.00% | 0.00% |
July 1, 2021 through December 31, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 7/01/21 | Ending Account Value 12/31/21 | Expenses Paid During Period (p) 7/01/21-12/31/21 | |
Initial Class | Actual | 0.04% | $1,000.00 | $1,000.00 | $0.20 |
Hypothetical (h) | 0.04% | $1,000.00 | $1,025.00 | $0.20 | |
Service Class | Actual | 0.04% | $1,000.00 | $1,000.00 | $0.20 |
Hypothetical (h) | 0.04% | $1,000.00 | $1,025.00 | $0.20 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
U.S. Government Agencies and Equivalents (y) – 74.8% | ||||
Fannie Mae, 0.03%, due 1/05/2022 | $ 1,593,000 | $ 1,592,995 | ||
Fannie Mae, 0.035%, due 1/26/2022 | 2,268,000 | 2,267,945 | ||
Fannie Mae, 0.044%, due 3/02/2022 | 4,524,000 | 4,523,676 | ||
Fannie Mae, 0.054%, due 3/09/2022 | 5,984,000 | 5,983,410 | ||
Fannie Mae, 0.046%, due 3/16/2022 | 1,538,000 | 1,537,858 | ||
Federal Farm Credit Bank, 0.03%, due 1/12/2022 | 9,119,000 | 9,118,916 | ||
Federal Farm Credit Bank, 0.041%, due 1/14/2022 | 5,030,000 | 5,029,927 | ||
Federal Farm Credit Bank, 0.051%, due 2/03/2022 | 1,512,000 | 1,511,931 | ||
Federal Farm Credit Bank, 0.041%, due 2/10/2022 | 7,175,000 | 7,174,681 | ||
Federal Home Loan Bank, 0.03%, due 1/12/2022 | 9,196,000 | 9,195,916 | ||
Federal Home Loan Bank, 0.051%, due 2/02/2022 | 2,020,000 | 2,019,910 | ||
Federal Home Loan Bank, 0.051%, due 2/04/2022 | 6,017,000 | 6,016,716 | ||
U.S. Treasury Bill, 0.028%, due 1/04/2022 | 13,542,000 | 13,541,969 | ||
U.S. Treasury Bill, 0.028%, due 1/06/2022 | 9,049,000 | 9,048,965 | ||
U.S. Treasury Bill, 0.03%, due 1/13/2022 | 6,806,000 | 6,805,909 | ||
U.S. Treasury Bill, 0.041%, due 1/13/2022 | 1,035,000 | 1,034,990 | ||
U.S. Treasury Bill, 0.046%, due 1/18/2022 | 3,904,000 | 3,903,917 | ||
U.S. Treasury Bill, 0.051%, due 2/15/2022 | 8,761,000 | 8,760,452 | ||
U.S. Treasury Bill, 0.051%, due 2/17/2022 | 16,013,000 | 16,011,955 | ||
U.S. Treasury Bill, 0.041%, due 2/22/2022 | 19,930,000 | 19,928,848 | ||
U.S. Treasury Bill, 0.041%, due 2/24/2022 | 5,107,000 | 5,106,694 | ||
U.S. Treasury Bill, 0.051%, due 3/01/2022 | 14,681,000 | 14,679,797 | ||
U.S. Treasury Bill, 0.041%, due 3/03/2022 | 12,133,000 | 12,132,178 | ||
U.S. Treasury Bill, 0.046%, due 3/08/2022 | 7,599,000 | 7,598,373 | ||
U.S. Treasury Bill, 0.046%, due 3/10/2022 | 5,107,000 | 5,106,566 | ||
U.S. Treasury Bill, 0.046%, due 3/15/2022 | 6,269,000 | 6,268,428 | ||
U.S. Treasury Bill, 0.046%, due 3/17/2022 | 4,722,000 | 4,721,557 | ||
Total U.S. Government Agencies and Equivalents, at Amortized Cost and Value | $ 190,624,479 | |||
Repurchase Agreements – 25.2% | ||||
Bank of America Corp. Repurchase Agreement, 0.05%, dated 12/31/2021, due 1/03/2022, total to be received $32,194,134 (secured by U.S. Treasury and Federal Agency obligations valued at $32,941,710) | $32,194,000 | $ 32,194,000 | ||
JPMorgan Chase & Co. Repurchase Agreement, 0.05%, dated 12/31/2021, due 1/03/2022, total to be received $32,151,134 (secured by U.S. Treasury and Federal Agency obligations valued at $32,794,242) | 32,151,000 | 32,151,000 | ||
Total Repurchase Agreements, at Cost and Value | $ 64,345,000 | |||
Other Assets, Less Liabilities – 0.0% | 43,526 | |||
Net Assets – 100.0% | $ 255,013,005 |
(y) | The rate shown represents an annualized yield at time of purchase. |
Financial Statements | Statement of Assets and Liabilities |
At 12/31/21Assets | |
Investments in unaffiliated issuers, at cost and value | $190,624,479 |
Investments in unaffiliated repurchase agreements, at cost and value | 64,345,000 |
Cash | 653 |
Receivables for | |
Fund shares sold | 409,297 |
Interest | 90 |
Receivable from investment adviser and distributor | 9,477 |
Other assets | 1,499 |
Total assets | $255,390,495 |
Liabilities | |
Payables for | |
Fund shares reacquired | $317,781 |
Payable to affiliates | |
Administrative services fee | 246 |
Shareholder servicing costs | 41 |
Payable for independent Trustees' compensation | 241 |
Accrued expenses and other liabilities | 59,181 |
Total liabilities | $377,490 |
Net assets | $255,013,005 |
Net assets consist of | |
Paid-in capital | $254,987,805 |
Total distributable earnings (loss) | 25,200 |
Net assets | $255,013,005 |
Shares of beneficial interest outstanding | 255,207,536 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $149,895,759 | 150,009,697 | $1.00 |
Service Class | 105,117,246 | 105,197,839 | 1.00 |
Financial Statements | Statement of Operations |
Year ended 12/31/21 | |
Net investment income (loss) | |
Income | |
Interest | $94,162 |
Other | 4,024 |
Total investment income | $98,186 |
Expenses | |
Management fee | $1,056,951 |
Distribution and/or service fees | 273,368 |
Shareholder servicing costs | 5,878 |
Administrative services fee | 45,244 |
Independent Trustees' compensation | 5,941 |
Custodian fee | 12,021 |
Shareholder communications | 18,814 |
Audit and tax fees | 37,919 |
Legal fees | 1,226 |
Miscellaneous | 30,212 |
Total expenses | $1,487,574 |
Reduction of expenses by investment adviser and distributor | (1,389,388) |
Net expenses | $98,186 |
Net investment income (loss) | $0 |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $25,200 |
Change in net assets from operations | $25,200 |
Financial Statements | Statements of Changes in Net Assets |
Year ended | ||
12/31/21 | 12/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $0 | $569,717 |
Net realized gain (loss) | 25,200 | 300 |
Change in net assets from operations | $25,200 | $570,017 |
Total distributions to shareholders | $— | $(569,717) |
Change in net assets from fund share transactions | $(15,934,157) | $6,689,361 |
Total change in net assets | $(15,908,957) | $6,689,661 |
Net assets | ||
At beginning of period | 270,921,962 | 264,232,301 |
At end of period | $255,013,005 | $270,921,962 |
Financial Statements | Financial Highlights |
Initial Class | Year ended | ||||
12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.00 | $0.00(w) | $0.02 | $0.01 | $0.00(w) |
Net realized and unrealized gain (loss) | 0.00(w) | 0.00(w) | 0.00(w) | — | 0.00(w) |
Total from investment operations | $0.00(w) | $0.00(w) | $0.02 | $0.01 | $0.00(w) |
Less distributions declared to shareholders | |||||
From net investment income | $— | $(0.00)(w) | $(0.02) | $(0.01) | $(0.00)(w) |
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Total return (%) (k)(r) | 0.00 | 0.22 | 1.63 | 1.26 | 0.30 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.46 | 0.52 | 0.56 | 0.56 | 0.56 |
Expenses after expense reductions | 0.04 | 0.24 | 0.55 | 0.55 | 0.54 |
Net investment income (loss) | 0.00 | 0.20 | 1.63 | 1.25 | 0.29 |
Net assets at end of period (000 omitted) | $149,896 | $155,937 | $149,689 | $160,304 | $168,107 |
Service Class | Year ended | ||||
12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.00 | $0.00(w) | $0.02 | $0.01 | $0.00(w) |
Net realized and unrealized gain (loss) | 0.00(w) | 0.00(w) | 0.00(w) | — | 0.00(w) |
Total from investment operations | $0.00(w) | $0.00(w) | $0.02 | $0.01 | $0.00(w) |
Less distributions declared to shareholders | |||||
From net investment income | $— | $(0.00)(w) | $(0.02) | $(0.01) | $(0.00)(w) |
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Total return (%) (k)(r) | 0.00 | 0.22 | 1.63 | 1.26 | 0.29 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.71 | 0.77 | 0.81 | 0.81 | 0.81 |
Expenses after expense reductions | 0.04 | 0.25 | 0.55 | 0.55 | 0.55 |
Net investment income (loss) | 0.00 | 0.21 | 1.64 | 1.24 | 0.27 |
Net assets at end of period (000 omitted) | $105,117 | $114,985 | $114,543 | $128,156 | $146,428 |
(d) | Per share data is based on average shares outstanding. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(w) | Per share amount was less than $0.01. |
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
Short-Term Securities | $— | $254,969,479 | $— | $254,969,479 |
Year ended 12/31/21 | Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $— | $569,717 |
As of 12/31/21 | |
Cost of investments | $254,969,479 |
Undistributed ordinary income | 25,200 |
Total distributable earnings (loss) | $25,200 |
Year ended 12/31/21 | Year ended 12/31/20 | ||
Initial Class | $— | $326,608 | |
Service Class | — | 243,109 | |
Total | $— | $569,717 |
Up to $1 billion | 0.40% |
In excess of $1 billion | 0.35% |
Year ended 12/31/21 | Year ended 12/31/20 | ||
Shares sold | |||
Initial Class | 41,542,048 | 71,530,784 | |
Service Class | 26,866,611 | 64,994,305 | |
68,408,659 | 136,525,089 | ||
Shares issued to shareholders in reinvestment of distributions | |||
Initial Class | — | 326,608 | |
Service Class | — | 243,109 | |
— | 569,717 | ||
Shares reacquired | |||
Initial Class | (47,603,051) | (65,600,762) | |
Service Class | (36,739,765) | (64,804,683) | |
(84,342,816) | (130,405,445) | ||
Net change | |||
Initial Class | (6,061,003) | 6,256,630 | |
Service Class | (9,873,154) | 432,731 | |
(15,934,157) | 6,689,361 |
February 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 | 135 | 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 | 135 | Private investor | N/A | |||||
Steven E. Buller (age 70) | Trustee | February 2014 | 135 | Private investor | N/A | |||||
John A. Caroselli (age 67) | Trustee | March 2017 | 135 | Private investor; JC Global Advisors, LLC (management consulting), President (since 2015) | N/A | |||||
Maureen R. Goldfarb (age 66) | Trustee | January 2009 | 135 | Private investor | N/A | |||||
Peter D. Jones (age 66) | Trustee | January 2019 | 135 | Private investor | N/A | |||||
James W. Kilman, Jr. (age 60) | Trustee | January 2019 | 135 | 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) | |||||
Clarence Otis, Jr. (age 65) | Trustee | March 2017 | 135 | Private investor | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director | |||||
Maryanne L. Roepke (age 65) | Trustee | May 2014 | 135 | Private investor | N/A | |||||
Laurie J. Thomsen (age 64) | Trustee | March 2005 | 135 | 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 | 135 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | ||||
Kino Clark (k) (age 53) | Assistant Treasurer | January 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
John W. Clark, Jr. (k) (age 54) | Assistant Treasurer | April 2017 | 135 | Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head - Treasurer's Office (until February 2017) | ||||
Thomas H. Connors (k) (age 62) | Assistant Secretary and Assistant Clerk | September 2012 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
David L. DiLorenzo (k) (age 53) | President | July 2005 | 135 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 54) | Secretary and Clerk | April 2017 | 135 | 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 48) | Assistant Secretary and Assistant Clerk | June 2006 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
Amanda S. Mooradian (k) (age 42) | Assistant Secretary and Assistant Clerk | September 2018 | 135 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 51) | Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Kasey L. Phillips (k) (age 51) | Assistant Treasurer | September 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 47) | Assistant Secretary and Assistant Clerk | October 2014 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Martin J. Wolin (k) (age 54) | Chief Compliance Officer | July 2015 | 135 | Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer | ||||
James O. Yost (k) (age 61) | Treasurer | September 1990 | 135 | 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 | Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 |
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 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.
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 Deloitte & Touche LLP (“Deloitte”) to serve as independent accountants to the Registrant (hereinafter the “Registrant” or the “Fund”). The tables below set forth the audit fees billed to the Fund as well as fees for non-audit services provided to the Fund and/or to the 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 December 31, 2021 and 2020, audit fees billed to the Fund by Deloitte were as follows:
Audit Fees | ||||||||
2021 | 2020 | |||||||
Fees billed by Deloitte: | ||||||||
MFS Blended Research Core Equity Portfolio | 47,221 | 46,547 | ||||||
MFS Core Equity Portfolio | 49,448 | 48,743 | ||||||
MFS Corporate Bond Portfolio | 69,002 | 68,027 | ||||||
MFS Emerging Markets Equity Portfolio | 49,762 | 49,053 | ||||||
MFS Global Governments Portfolio | 66,552 | 65,611 | ||||||
MFS Global Growth Portfolio | 60,763 | 59,902 | ||||||
MFS Global Research Portfolio | 48,178 | 47,491 | ||||||
MFS Global Tactical Allocation Portfolio | 66,592 | 65,650 | ||||||
MFS Government Securities Portfolio | 56,568 | 55,765 | ||||||
MFS High Yield Portfolio | 73,453 | 72,417 | ||||||
MFS Income Portfolio | 73,167 | 72,135 | ||||||
MFS International Growth Portfolio | 49,762 | 49,053 | ||||||
MFS International Intrinsic Value Portfolio | 50,716 | 49,994 | ||||||
MFS Massachusetts Investors Growth Stock Portfolio | 49,338 | 48,635 | ||||||
MFS Research International Portfolio | 47,221 | 46,547 | ||||||
MFS Technology Portfolio | 47,331 | 46,655 | ||||||
MFS U.S. Government Money Market Portfolio | 29,199 | 28,774 | ||||||
|
|
|
| |||||
Total | 934,273 | 920,999 |
For the fiscal years ended December 31, 2021 and 2020, fees billed by Deloitte 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:
Audit-Related Fees1 | Tax Fees2 | All Other Fees3 | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Fees billed by Deloitte: | ||||||||||||||||||||||||
To MFS Blended Research Core Equity Portfolio | 2,400 | 2,400 | 5,664 | 5,591 | 0 | 0 | ||||||||||||||||||
To MFS Core Equity Portfolio | 2,400 | 2,400 | 5,914 | 5,841 | 0 | 0 | ||||||||||||||||||
To MFS Corporate Bond Portfolio | 2,400 | 2,400 | 5,664 | 5,591 | 0 | 0 | ||||||||||||||||||
To MFS Emerging Markets Equity Portfolio | 2,400 | 2,400 | 5,664 | 5,591 | 0 | 0 | ||||||||||||||||||
To MFS Global Governments Portfolio | 2,400 | 2,400 | 5,664 | 5,591 | 0 | 0 | ||||||||||||||||||
To MFS Global Growth Portfolio | 2,400 | 2,400 | 5,664 | 5,841 | 0 | 0 | ||||||||||||||||||
To MFS Global Research Portfolio | 2,400 | 2,400 | 5,914 | 5,841 | 0 | 0 | ||||||||||||||||||
To MFS Global Tactical Allocation Portfolio | 2,400 | 2,400 | 5,914 | 5,591 | 0 | 0 | ||||||||||||||||||
To MFS Government Securities Portfolio | 2,400 | 2,400 | 5,664 | 5,591 | 0 | 0 | ||||||||||||||||||
To MFS High Yield Portfolio | 2,400 | 2,400 | 5,664 | 5,591 | 0 | 0 | ||||||||||||||||||
To MFS Income Portfolio | 2,400 | 2,400 | 5,664 | 5,591 | 0 | 0 | ||||||||||||||||||
To MFS International Growth Portfolio | 2,400 | 2,400 | 5,664 | 5,591 | 0 | 0 | ||||||||||||||||||
To MFS International Intrinsic Value Portfolio | 2,400 | 2,400 | 5,664 | 5,591 | 0 | 0 | ||||||||||||||||||
To MFS Massachusetts Investors Growth Stock Portfolio | 2,400 | 2,400 | 5,664 | 5,841 | 0 | 0 | ||||||||||||||||||
To MFS Research International Portfolio | 2,400 | 2,400 | 5,664 | 5,591 | 0 | 0 | ||||||||||||||||||
To MFS Technology Portfolio | 2,400 | 2,400 | 5,914 | 5,591 | 0 | 0 | ||||||||||||||||||
To MFS U.S. Government Money Market Portfolio | 2,400 | 2,400 | 5,664 | 5,591 | 0 | 0 | ||||||||||||||||||
Total fees billed by Deloitte To above Funds: | 40,800 | 40,800 | 97,288 | 96,047 | 0 | 0 |
Audit-Related Fees1 | Tax Fees2 | All Other Fees3 | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Fees billed by Deloitte: | ||||||||||||||||||||||||
To MFS and MFS Related Entities of MFS Blended Research Core Equity Portfolio* | 0 | 0 | 0 | 0 | 5,390 | 5,390 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS Core Equity Portfolio* | 0 | 0 | 0 | 0 | 5,390 | 5,390 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS Corporate Bond Portfolio* | 0 | 0 | 0 | 0 | 5,390 | 5,390 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS Emerging Markets Equity Portfolio* | 0 | 0 | 0 | 0 | 5,390 | 5,390 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS Global Governments Portfolio* | 0 | 0 | 0 | 0 | 5,390 | 5,390 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS Global Growth Portfolio* | 0 | 0 | 0 | 0 | 5,390 | 5,390 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS Global Research Portfolio* | 0 | 0 | 0 | 0 | 5,390 | 5,390 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS Global Tactical Allocation Portfolio* | 0 | 0 | 0 | 0 | 5,390 | 5,390 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS Government Securities Portfolio* | 0 | 0 | 0 | 0 | 5,390 | 5,390 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS High Yield Portfolio* | 0 | 0 | 0 | 0 | 5,390 | 5,390 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS Income Portfolio* | 0 | 0 | 0 | 0 | 5,390 | 5,390 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS International Growth Portfolio* | 0 | 0 | 0 | 0 | 5,390 | 5,390 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS International Intrinsic Value Portfolio* | 0 | 0 | 0 | 0 | 5,390 | 5,390 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS Massachusetts Investors Growth Stock Portfolio* | 0 | 0 | 0 | 0 | 5,390 | 5,390 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS Research International Portfolio* | 0 | 0 | 0 | 0 | 5,390 | 5,390 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS Technology Portfolio* | 0 | 0 | 0 | 0 | 5,390 | 5,390 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS U.S. Government Money Market Portfolio * | 0 | 0 | 0 | 0 | 5,390 | �� | 5,390 |
Aggregate fees for non-audit services: | ||||||||
2021 | 2020 | |||||||
Fees billed by Deloitte: | ||||||||
To MFS Blended Research Core Equity Portfolio, MFS and MFS Related Entities# | 13,454 | 557,131 | ||||||
To MFS Core Equity Portfolio, MFS and MFS Related Entities# | 13,704 | 557,381 | ||||||
To MFS Corporate Bond Portfolio, MFS and MFS Related Entities# | 13,454 | 557,131 | ||||||
To MFS Emerging Markets Equity Portfolio, MFS and MFS Related Entities# | 13,454 | 557,131 | ||||||
To MFS Global Governments Portfolio, MFS and MFS Related Entities# | 13,454 | 557,131 | ||||||
To MFS Global Growth Portfolio MFS and MFS Related Entities# | 13,454 | 557,381 | ||||||
To MFS Global Research Portfolio, MFS and MFS Related Entities# | 13,704 | 557,381 | ||||||
To MFS Global Tactical Allocation Portfolio, MFS and MFS Related Entities# | 13,704 | 557,131 | ||||||
To MFS Government Securities Portfolio, MFS and MFS Related Entities# | 13,454 | 557,131 | ||||||
To MFS High Yield Portfolio, MFS and MFS Related Entities# | 13,454 | 557,131 | ||||||
To MFS Income Portfolio, MFS and MFS Related Entities# | 13,454 | 557,131 | ||||||
To MFS International Growth Portfolio, MFS and MFS Related Entities# | 13,454 | 557,131 | ||||||
To MFS International Intrinsic Value Portfolio, MFS and MFS Related Entities# | 13,454 | 557,131 | ||||||
To MFS Massachusetts Investors Growth Stock Portfolio, MFS and MFS Related Entities# | 13,454 | 557,381 | ||||||
To MFS Research International Portfolio, MFS and MFS Related Entities# | 13,454 | 557,131 | ||||||
To MFS Technology Portfolio, MFS and MFS Related Entities# | 13,704 | 557,131 | ||||||
To MFS U.S. Government Money Market Portfolio, MFS and MFS Related Entities# | 13,454 | 557,131 |
* | 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 Fund (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 Deloitte for non-audit services rendered to the Fund 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. |
2 | The 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. |
3 | The fees included under “All Other Fees” are fees for products and services provided by Deloitte other than those reported under “Audit Fees,” “Audit-Related Fees” and “Tax Fees”. |
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 between such 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 were provided prior to the effectiveness of SEC rules requiring pre-approval or 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. | SCHEDULE OF INVESTMENTS |
A schedule of investments of each series of the Registrant 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 VARIABLE INSURANCE TRUST II
By (Signature and Title)* | /S/ DAVID L. DILORENZO | |
David L. DiLorenzo, President |
Date: February 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: February 15, 2022
By (Signature and Title)* | /S/ JAMES O. YOST | |
James O. Yost, Treasurer (Principal Financial Officer and Accounting Officer) |
Date: February 15, 2022
* | Print name and title of each signing officer under his or her signature. |