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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 811-04096
MFS MUNICIPAL SERIES TRUST
(Exact name of registrant as specified in charter)
111 Huntington Avenue, Boston, Massachusetts 02199
(Address of principal executive offices) (Zip code)
Susan S. Newton
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: March 31
Date of reporting period: March 31, 2014
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ITEM 1. | REPORTS TO STOCKHOLDERS. |
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ANNUAL REPORT
March 31, 2014
MFS® MUNICIPAL INCOME FUND
LMB-ANN
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MFS® MUNICIPAL INCOME FUND
The report is prepared for the general information of shareholders. It is authorized for distribution to prospective investors only when preceded or accompanied by a current prospectus.
NOT FDIC INSURED Ÿ MAY LOSE VALUE Ÿ NO BANK GUARANTEE
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LETTER FROM THE CHAIRMAN AND CEO
Dear Shareholders:
The pace of U.S. economic growth slowed early in 2014, largely because of harsh winter weather. However, the U.S. labor market, consumer confidence and other
economic data have all pointed to recovery. The U.S. Federal Reserve’s steady, gradual removal of its bond-buying stimulus, after initially causing concern, is providing some consistency, which can inspire consumer and investor confidence.
Global economic uncertainty and geopolitical tensions have added to market volatility. The eurozone, however, is making progress in its economic recovery. Japan’s progress in its battle to end deflation is expected to experience a temporary setback on the heels of the country’s sales tax increase, introduced in April.
The world’s largest economic concern remains the slowdown in China’s pace of growth as it shifts toward a more consumer-oriented economy. Any reduction in China’s economic growth rate is likely to have a ripple effect on its many trading partners.
In uncertain times such as these, it is particularly important to remember that managing risk should always be a top priority. At MFS®, active risk management is an integral part of our collaborative process. Our global team of investment professionals shares ideas and evaluates opportunities that span continents, investment disciplines and asset classes. Our goal is to build better insights, and ultimately better results, for our clients.
We understand and appreciate the economic challenges investors face, and we believe in the value of maintaining a long-term view and applying proven principles, such as asset allocation and diversification. We are confident that our unique approach can serve investors well as they work with their financial advisors to identify and pursue the most suitable opportunities.
Respectfully,
Robert J. Manning
Chairman and Chief Executive Officer
MFS Investment Management
May 13, 2014
The opinions expressed in this letter are subject to change, may not be relied upon for investment advice, and no forecasts can be guaranteed.
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Portfolio structure (i)
Top ten industries (i) | ||||
Healthcare Revenue-Hospitals | 12.9% | |||
General Obligations-General Purpose | 11.2% | |||
Universities-Colleges | 8.3% | |||
Water & Sewer Utility Revenue | 7.0% | |||
Utilities-Municipal Owned | 6.5% | |||
State & Local Agencies | 5.0% | |||
Tobacco | 4.1% | |||
General Obligations-Schools | 3.8% | |||
Sales & Excise Tax Revenue | 3.3% | |||
Healthcare Revenue-Long Term Care | 3.2% |
Composition including fixed income credit quality (a)(i) | ||||
AAA | 7.4% | |||
AA | 31.1% | |||
A | 30.2% | |||
BBB | 17.1% | |||
BB | 3.5% | |||
B | 4.2% | |||
CCC (o) | 0.0% | |||
C | 0.2% | |||
Not Rated | 3.5% | |||
Cash & Other | 2.8% | |||
Portfolio facts (i) | ||||
Average Duration (d) | 8.2 | |||
Average Effective Maturity (m) | 16.1 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. 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, including fixed income futures contracts, which have not been rated by any rating agency. The fund may not hold all of these instruments. 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. |
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Portfolio Composition – continued
(i) | For purposes of this presentation, the components include the market 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 market value. The bond component will include any accrued interest amounts. |
(m) | In determining an 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%. |
Where the fund holds convertible bonds, these are treated as part of the equity portion of the portfolio.
Cash & Other includes cash, other assets less liabilities, offsets to derivative positions, and short-term securities.
Percentages are based on net assets as of 3/31/14.
The portfolio is actively managed and current holdings may be different.
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Summary of Results
For the twelve months ended March 31, 2014, Class A shares of the MFS Municipal Income Fund (“fund”) provided a total return of –1.52%, at net asset value. This compares with a return of 0.39% for the fund’s benchmark, the Barclays Municipal Bond Index.
Market Environment
Early in the period, jitters over a banking crisis in Cyprus was more than offset by ongoing accommodative global monetary policy and improving economic data, resulting in gains in both equity and fixed income markets. As the period progressed, concerns that the US Federal Reserve (“Fed”) would begin tapering its quantitative easing (“QE”) program caused sovereign bond yields to spike, credit spreads to widen, and equity valuations to fall. Equities subsequently outperformed fixed income in response to the improved economic fundamentals.
Toward the middle of the period, the Fed’s decision to postpone QE tapering surprised markets. Favorable market reactions were tempered, however, by tense negotiations over US fiscal policy which resulted in a 16-day partial shutdown of the federal government and a short-term extension in the debt ceiling. The volatility was short-lived, however, as an extension of budget and debt ceiling deadlines allowed the government to re-open, and subsequent economic data reflected moderate but resilient US growth. Also well-received was the decision by the European Central Bank to cut its policy rate as inflation pressures waned in the region. In addition, equity investors appeared to have concluded that there would be no major change in US monetary policy as a result of the nomination of Janet Yellen as the new Fed Chair for a term beginning in early 2014.
Later in the period, emerging market stresses resurfaced as political unrest, an escalation of tensions due to Russia’s annexation of a portion of the Ukraine, falling currencies and slowing growth appeared to have impacted investor sentiment. Markets were also forced to contend with some unexpected weakness in the US economy due largely to weather-related interruptions to hiring and spending plans as well as production schedules. Once again, the setback was short-lived as the major US equity indexes traded near their all-time highs by the end of the period.
Over the twelve months ended March 31, 2014, municipal bond yields generally increased as fixed income market activity was led by the Fed’s signal last June 2013 that it would begin to reduce monthly purchases of US Treasury and mortgage-backed securities; the reduction in the size of the purchase program actually began in December 2013, when 10-year US Treasury yields peaked at 3%. Municipal bond prices fell accordingly during this time frame after the Fed announced it might taper asset purchases. The rise in municipal bond yields was more pronounced in the long end of the yield curve (y) relative to intermediate-term bonds as municipal bond mutual fund redemptions, as well as reduced liquidity, lessened the demand for longer maturity bonds.
Further, more flames were fanned by credit concerns, first by Detroit’s Chapter 9 filing in July, and then by increased scrutiny of Puerto Rico’s weakened fiscal position in late
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Management Review – continued
August. Since January 2014, municipal market supply/demand dynamics have improved enough to enable municipal bonds to rally as retail investors and hedge funds emerged as the market’s primary source of demand. The supply/demand dynamics were further supported by a reduced level of issuance during Q1 2014 as well as a more stable trend in mutual fund flows.
With the risks of a restructuring of Puerto Rico debt deferred after the Commonwealth successfully issued a $3.5 billion General Obligation bond deal, concerns regarding negative headline risk in the municipal market have also waned for the time being.
Factors Affecting Performance
A key factor that detracted from performance relative to the Barclays Municipal Bond Index was the fund’s longer duration (d) stance. The fund’s greater exposure to “BBB” rated (r) bonds also hurt relative performance.
Among sectors, the fund’s greater exposure to sales/excise tax as well as a lesser exposure to credit enhanced hampered relative performance and offset the favorable impact from positive bond selection within “BBB” rated securities.
Respectively,
Geoffrey Schechter Portfolio Manager |
(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) | Bonds rated “BBB”, “Baa”, or higher are considered investment grade; bonds rated “BB”, “Ba”, or below are considered non-investment grade. The sources for bond quality ratings are Moody’s Investors Service, Standard & Poor’s and Fitch, Inc. and are applied using 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 and Fitch scale (e.g., AAA). For securities which are not rated by any of the three agencies, the security is considered Not Rated. |
The views expressed in this report are those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily reflect the views of MFS or any other person in the MFS organization. These views are subject to change at any time based on market or other conditions, and MFS disclaims any responsibility to update such views. These views may not be relied upon as investment advice or an indication of trading intent on behalf of any MFS portfolio. References to specific securities are not recommendations of such securities, and may not be representative of any MFS portfolio’s current or future investments.
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PERFORMANCE SUMMARY THROUGH 3/31/14
The following chart illustrates a representative class of the fund’s historical performance in comparison to its benchmark(s). Performance results include the deduction of the maximum applicable sales charge and reflect the percentage change in net asset value, including reinvestment of dividends and capital gains distributions. The performance of other share classes will be greater than or less than that of the class depicted below. Benchmarks are unmanaged and may not be invested in directly. Benchmark returns do not reflect sales charges, commissions or expenses. (See Notes to Performance Summary.)
Performance data shown represents past performance and is no guarantee of future results. Investment return and principal value fluctuate so your shares, when sold, may be worth more or less than the original cost; current performance may be lower or higher than quoted. The performance shown does not reflect the deduction of taxes, if any, that a shareholder would pay on fund distributions or the redemption of fund shares.
Growth of a Hypothetical $10,000 Investment
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Performance Summary – continued
Total Returns through 3/31/14
Average annual without sales charge
Share class | Class inception date | 1-yr | 5-yr | 10-yr | Life (t) | |||||||||
A | 9/07/93 | (1.52)% | 6.57% | 4.44% | N/A | |||||||||
B | 12/29/86 | (2.26)% | 5.74% | 3.65% | N/A | |||||||||
C | 1/03/94 | (2.26)% | 5.76% | 3.66% | N/A | |||||||||
I | 8/01/11 | (1.29)% | N/A | N/A | 5.37% | |||||||||
A1 | 6/25/07 | (1.27)% | 6.83% | N/A | 5.10% | |||||||||
B1 | 6/25/07 | (2.02)% | 6.03% | N/A | 4.29% | |||||||||
Comparative benchmark | ||||||||||||||
Barclays Municipal Bond Index (f) | 0.39% | 5.71% | 4.45% | N/A | ||||||||||
Average annual with sales charge | ||||||||||||||
A With initial Sales Charge (4.75%) | (6.20)% | 5.54% | 3.94% | N/A | ||||||||||
B With CDSC (Declining over six years from 4% to 0%) (v) | (6.05)% | 5.42% | 3.65% | N/A | ||||||||||
C With CDSC (1% for 12 months) (v) | (3.20)% | 5.76% | 3.66% | N/A | ||||||||||
A1 With initial Sales Charge (4.75%) | (5.96)% | 5.80% | N/A | 4.35% | ||||||||||
B1 With CDSC (Declining over six years from 4% to 0%) (v) | (5.81)% | 5.71% | N/A | 4.29% |
CDSC – Contingent Deferred Sales Charge.
Class I shares do not have a sales charge.
(f) | Source: FactSet Research Systems Inc. |
(t) | For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.) |
(v) | Assuming redemption at the end of the applicable period. |
Benchmark Definition
Barclays Municipal Bond Index – a market capitalization-weighted index that measures the performance of the tax-exempt bond market.
It is not possible to invest directly in an index.
Notes to Performance Summary
Average annual total return represents the average annual change in value for each share class for the periods presented. Life returns are presented where the share class has less than 10 years of performance history and represent the average annual total return from the class inception date to the stated period end date. As the fund’s share
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Performance Summary – continued
classes may have different inception dates, the life returns may represent different time periods and may not be comparable. As a result, no comparative benchmark performance information is provided for life periods.
Performance results reflect any applicable expense subsidies and waivers in effect during the periods shown. Without such subsidies and waivers the fund’s performance results would be less favorable. Please see the prospectus and financial statements for complete details.
Performance results do not include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles and may differ from amounts reported in the financial highlights.
A portion of income may be subject to state, federal, and/or alternative minimum tax. Capital gains, if any, are subject to a capital gains tax.
From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower.
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Fund expenses borne by the shareholders during the period, October 1, 2013 through March 31, 2014
As a shareholder of the fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on certain purchase or redemption payments, and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period October 1, 2013 through March 31, 2014.
Actual Expenses
The first line for each share class in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line for each share class in the following table provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
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Expense Table – continued
Share Class | Annualized Ratio | Beginning Account Value 10/01/13 | Ending Account Value | Expenses Paid During Period (p) 10/01/13-3/31/14 | ||||||||||||||
A | Actual | 0.75% | $1,000.00 | $1,039.77 | $3.81 | |||||||||||||
Hypothetical (h) | 0.75% | $1,000.00 | $1,021.19 | $3.78 | ||||||||||||||
B | Actual | 1.51% | $1,000.00 | $1,034.61 | $7.66 | |||||||||||||
Hypothetical (h) | 1.51% | $1,000.00 | $1,017.40 | $7.59 | ||||||||||||||
C | Actual | 1.50% | $1,000.00 | $1,035.76 | $7.61 | |||||||||||||
Hypothetical (h) | 1.50% | $1,000.00 | $1,017.45 | $7.54 | ||||||||||||||
I | Actual | 0.50% | $1,000.00 | $1,041.03 | $2.54 | |||||||||||||
Hypothetical (h) | 0.50% | $1,000.00 | $1,022.44 | $2.52 | ||||||||||||||
A1 | Actual | 0.51% | $1,000.00 | $1,041.02 | $2.60 | |||||||||||||
Hypothetical (h) | 0.51% | $1,000.00 | $1,022.39 | $2.57 | ||||||||||||||
B1 | Actual | 1.27% | $1,000.00 | $1,035.86 | $6.45 | |||||||||||||
Hypothetical (h) | 1.27% | $1,000.00 | $1,018.60 | $6.39 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
Notes to Expense Table
Expense ratios include 0.02% of investment related expenses from inverse floaters that are outside of the expense limitation arrangement (See Note 3 of the Notes to Financial Statements).
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3/31/14
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
Municipal Bonds - 95.9% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Alabama - 0.7% | ||||||||
Alabama Incentives Financing Authority Special Obligation, “A”, 5%, 9/01/37 | $ | 700,000 | $ | 734,730 | ||||
Butler, AL, Industrial Development Board, Solid Waste Disposal Rev. (Georgia-Pacific Corp.), 5.75%, 9/01/28 | 1,760,000 | 1,786,770 | ||||||
Cullman County, AL, Health Care Authority (Cullman Regional Medical Center), “A”, 6.75%, 2/01/29 | 3,550,000 | 3,795,980 | ||||||
Jefferson County, AL, Sewer Rev. Warrants, Capital Appreciation, Senior Lien, “B”, AGM, 0%, 10/01/25 | 95,000 | 51,032 | ||||||
Jefferson County, AL, Sewer Rev. Warrants, Capital Appreciation, Senior Lien, “B”, AGM, 0%, 10/01/26 | 1,175,000 | 591,460 | ||||||
Jefferson County, AL, Sewer Rev. Warrants, Capital Appreciation, Senior Lien, “B”, AGM, 0%, 10/01/29 | 1,655,000 | 678,335 | ||||||
Jefferson County, AL, Sewer Rev. Warrants, Capital Appreciation, Senior Lien, “B”, AGM, 0%, 10/01/34 | 2,370,000 | 676,754 | ||||||
Jefferson County, AL, Sewer Rev. Warrants, Capital Appreciation, Senior Lien, “B”, AGM, 0%, 10/01/35 | 4,495,000 | 1,197,378 | ||||||
Jefferson County, AL, Sewer Rev. Warrants, Subordinate Lien, “D”, 5%, 10/01/15 | 85,000 | 88,359 | ||||||
Jefferson County, AL, Sewer Rev. Warrants, Subordinate Lien, “D”, 5%, 10/01/16 | 185,000 | 197,180 | ||||||
Jefferson County, AL, Sewer Rev. Warrants, Subordinate Lien, “D”, 5%, 10/01/17 | 250,000 | 271,138 | ||||||
Jefferson County, AL, Sewer Rev. Warrants, Subordinate Lien, “D”, 5%, 10/01/18 | 265,000 | 289,929 | ||||||
Jefferson County, AL, Sewer Rev. Warrants, Subordinate Lien, “D”, 5%, 10/01/21 | 295,000 | 317,700 | ||||||
Jefferson County, AL, Sewer Rev. Warrants, Subordinate Lien, “D”, 5%, 10/01/23 | 435,000 | 463,771 | ||||||
Pell City, AL, Special Care Facilities, Financing Authority Rev. (Noland Health Services, Inc.), 5%, 12/01/39 | 1,750,000 | 1,763,405 | ||||||
Phenix City, AL, Industrial Development Board Environmental Improvement Rev. (MeadWestvaco Coated Board Project), “A”, 4.125%, 5/15/35 | 1,950,000 | 1,611,051 | ||||||
|
| |||||||
$ | 14,514,972 | |||||||
Arizona - 1.3% | ||||||||
Maricopa County, AZ, Pollution Control Rev. (El Paso Electric), “B”, 7.25%, 4/01/40 | $ | 1,710,000 | $ | 1,918,261 | ||||
Pima County, AZ, Industrial Development Authority Pollution Control Rev. (Tucson Electric Power Co.), “A”, 4.95%, 10/01/20 | 4,610,000 | 5,082,525 |
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Arizona - continued | ||||||||
Pima County, AZ, Industrial Development Authority Rev. (Tucson Electric Power Co.), 5.75%, 9/01/29 | $ | 3,715,000 | $ | 3,788,446 | ||||
Salt River, AZ, Project Agricultural Improvement & Power District Electric, “A”, 5%, 12/01/28 | 13,500,000 | 15,266,205 | ||||||
|
| |||||||
$ | 26,055,437 | |||||||
Arkansas - 0.2% | ||||||||
Arkansas Federal Highway Grant Anticipation & Tax Rev., 5%, 4/01/20 | $ | 3,970,000 | $ | 4,698,733 | ||||
Baxter County, AR, Hospital Rev., 5.375%, 9/01/14 | 5,000 | 5,014 | ||||||
|
| |||||||
$ | 4,703,747 | |||||||
California - 13.4% | ||||||||
Alameda Corridor Transportation Authority, California Rev., “A”, AGM, 5%, 10/01/28 | $ | 985,000 | $ | 1,093,389 | ||||
California Department of Water Resources Center (Central Valley Project Rev.), “AF”, 5%, 12/01/28 (u) | 23,825,000 | 26,978,954 | ||||||
California Department of Water Resources, Power Supply Rev., “N”, 5%, 5/01/20 | 13,080,000 | 15,512,488 | ||||||
California Educational Facilities Authority Rev. (Chapman University), 5%, 4/01/31 | 1,550,000 | 1,641,822 | ||||||
California Educational Facilities Authority Rev. (University of San Francisco), 6.125%, 10/01/36 | 925,000 | 1,073,268 | ||||||
California Educational Facilities Authority Rev. (University of Southern California), “A”, 5.25%, 10/01/38 | 4,610,000 | 5,057,308 | ||||||
California Health Facilities Financing Authority Rev. (St. Joseph Health System), “A”, 5.75%, 7/01/39 | 2,580,000 | 2,827,293 | ||||||
California Health Facilities Financing Authority Rev. (Sutter Health), “D”, 5.25%, 8/15/31 | 5,000,000 | 5,451,750 | ||||||
California Housing Finance Agency Rev. (Home Mortgage), “G”, 4.95%, 8/01/23 | 6,180,000 | 6,255,952 | ||||||
California Housing Finance Agency Rev. (Home Mortgage), “G”, 5.5%, 8/01/42 | 1,145,000 | 1,164,866 | ||||||
California Housing Finance Agency Rev. (Home Mortgage), “L”, 5.45%, 8/01/33 | 6,600,000 | 6,672,072 | ||||||
California Housing Finance Agency Rev. (Home Mortgage), “L”, FNMA, 5.5%, 8/01/38 | 1,270,000 | 1,283,843 | ||||||
California M-S-R Energy Authority Gas Rev., “A”, 7%, 11/01/34 | 595,000 | 780,789 | ||||||
California M-S-R Energy Authority Gas Rev., “A”, 6.5%, 11/01/39 | 1,810,000 | 2,276,057 | ||||||
California Municipal Finance Authority Rev. (Biola University), 5.8%, 10/01/28 | 1,785,000 | 1,940,277 | ||||||
California Municipal Finance Authority Rev. (University of La Verne), “A”, 6.25%, 6/01/40 | 850,000 | 924,919 |
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
California - continued | ||||||||
California Pollution Control Financing Authority, Solid Waste Disposal Rev. (Republic Services, Inc.), “B”, 5.25%, 6/01/23 (b) | $ | 950,000 | $ | 1,038,037 | ||||
California Pollution Control Financing Authority, Solid Waste Disposal Rev. (Waste Management, Inc.), “C”, 5.125%, 11/01/23 | 1,665,000 | 1,739,975 | ||||||
California Public Works Board Lease Rev. (Various Capital Projects), “G-1”, 5.75%, 10/01/30 | 2,950,000 | 3,326,273 | ||||||
California Public Works Board Lease Rev. (Various Capital Projects), “I”, 5%, 11/01/17 | 585,000 | 665,707 | ||||||
California Public Works Board Lease Rev. (Various Capital Projects), “I”, 5%, 11/01/18 | 615,000 | 711,949 | ||||||
California Public Works Board Lease Rev. (Various Capital Projects), “I”, 5%, 11/01/38 | 9,180,000 | 9,665,071 | ||||||
California Public Works Board Lease Rev., Department of Corrections and Rehabilitation (Various Correctional Facilities), “A”, 5%, 9/01/33 | 9,250,000 | 9,933,205 | ||||||
California State University Rev., “A”, 5%, 11/01/24 | 11,175,000 | 13,227,624 | ||||||
California Statewide Communities Development Authority Rev. (American Baptist Homes of the West), 6.25%, 10/01/39 | 1,050,000 | 1,095,486 | ||||||
California Statewide Communities Development Authority Rev. (California Baptist University), “A”, 5.4%, 11/01/27 | 245,000 | 246,159 | ||||||
California Statewide Communities Development Authority Rev. (Enloe Medical Center), CALHF, 5.75%, 8/15/38 | 2,640,000 | 2,849,616 | ||||||
California Statewide Communities Development Authority Rev. (Lancer Educational Student Housing Project), 5.625%, 6/01/33 | 1,025,000 | 960,435 | ||||||
California Statewide Communities Development Authority Rev. (Lancer Educational Student Housing Project), 7.5%, 6/01/42 | 925,000 | 996,308 | ||||||
California Statewide Communities Development Authority Rev. (Lancer Plaza Project), 5.625%, 11/01/33 | 190,000 | 184,399 | ||||||
California Statewide Communities Development Authority Rev. (Lancer Plaza Project), 5.125%, 11/01/23 | 165,000 | 164,685 | ||||||
California Statewide Communities Development Authority Rev. (Student Housing, SUCI East Campus), 6%, 5/15/40 | 1,655,000 | 1,761,317 | ||||||
California Statewide Communities Development Authority School Facility Rev. (Aspire Public Schools), 6.125%, 7/01/46 | 5,025,000 | 4,920,681 | ||||||
California Statewide Communities, Development Authority Environmental Facilities (Microgy Holdings Project), 9%, 12/01/38 (a)(d) | 126,224 | 1,262 | ||||||
Chula Vista, CA, Industrial Development Rev. (San Diego Gas & Electric Co.), “E”, 5.875%, 1/01/34 | 1,840,000 | 2,018,204 | ||||||
Escondido, CA, Union High School District (Election of 2008), Capital Appreciation, “A”, ASSD GTY, 0%, 8/01/30 | 4,495,000 | 2,226,239 | ||||||
Escondido, CA, Union High School District (Election of 2008), Capital Appreciation, “A”, ASSD GTY, 0%, 8/01/31 | 4,015,000 | 1,860,109 |
13
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
California - continued | ||||||||
Escondido, CA, Union High School District (Election of 2008), Capital Appreciation, “A”, ASSD GTY, 0%, 8/01/33 | $ | 2,785,000 | $ | 1,149,787 | ||||
Glendale, CA, Redevelopment Agency, Tax Allocation Rev. (Central Glendale Redevelopment Project), 5.5%, 12/01/24 | 2,250,000 | 2,340,045 | ||||||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A”, AGM, 4.55%, 6/01/22 | 3,415,000 | 3,599,956 | ||||||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., Enhanced, “A”, FGIC, 5%, 6/01/35 | 1,000,000 | 1,012,200 | ||||||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., Enhanced, “A-1”, AMBAC, 4.6%, 6/01/23 | 995,000 | 1,069,715 | ||||||
Hartnell, CA, Community College District (Election of 2002), Capital Appreciation, “D”, 0%, 8/01/39 | 9,645,000 | 1,888,877 | ||||||
Los Angeles, CA, Department of Airports Rev. (Los Angeles International), “A”, 5%, 5/15/29 | 2,990,000 | 3,318,302 | ||||||
Los Angeles, CA, Department of Water & Power Rev. (Power System), “B”, 5%, 7/01/43 | 14,440,000 | 15,444,735 | ||||||
Los Angeles, CA, Municipal Improvement Corp. Lease Rev. (Real Property), “E”, 6%, 9/01/39 | 2,580,000 | 2,913,001 | ||||||
Los Angeles, CA, Regional Airports Improvement Corp. Lease Rev. (American Airlines, Inc.), “C”, 7.5%, 12/01/24 | 1,385,000 | 1,431,439 | ||||||
Los Angeles, CA, Unified School District, “D”, 5%, 1/01/34 | 825,000 | 900,298 | ||||||
Madera, CA, Irrigation Financing Authority Rev., 6.5%, 1/01/40 | 3,595,000 | 3,913,373 | ||||||
Merced, CA, Union High School District, Capital Appreciation, “A”, ASSD GTY, 0%, 8/01/30 | 580,000 | 266,075 | ||||||
Mt. San Antonio, CA, Community College District, Convertible Capital Appreciation, 0%, 8/01/28 | 1,860,000 | 1,335,796 | ||||||
Oceanside, CA, Unified School District, Capital Appreciation, ASSD GTY, 0%, 8/01/24 | 2,900,000 | 1,897,412 | ||||||
Oceanside, CA, Unified School District, Capital Appreciation, ASSD GTY, 0%, 8/01/27 | 1,930,000 | 1,073,505 | ||||||
Oceanside, CA, Unified School District, Capital Appreciation, ASSD GTY, 0%, 8/01/29 | 3,915,000 | 1,935,224 | ||||||
Oceanside, CA, Unified School District, Capital Appreciation, ASSD GTY, 0%, 8/01/30 | 4,335,000 | 2,007,799 | ||||||
Palomar Pomerado Health Care District, CA, COP, 6.75%, 11/01/39 | 2,210,000 | 2,281,118 | ||||||
Port of Oakland, CA, Rev., “P”, 5%, 5/01/33 | 11,790,000 | 12,306,874 | ||||||
Riverside County Transportation Commission Sales Tax Rev. (Limited Tax), “A”, 5.25%, 6/01/39 | 4,655,000 | 5,176,639 | ||||||
Sacramento, CA, Municipal Utility District, “X”, 5%, 8/15/28 | 3,270,000 | 3,626,267 | ||||||
San Bernardino, CA, Joint Powers Financing Authority Lease Rev. (California Department of Transportation), 5.5%, 12/01/14 | 2,225,000 | 2,233,121 | ||||||
San Diego County, CA, Regional Airport Authority Rev., “A”, 5%, 7/01/40 | 9,315,000 | 9,606,373 |
14
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
California - continued | ||||||||
San Diego County, CA, Regional Airport Authority Rev., “B”, 5%, 7/01/24 | $ | 500,000 | $ | 569,360 | ||||
San Diego County, CA, Regional Airport Authority Rev., “B”, 5%, 7/01/25 | 1,500,000 | 1,694,025 | ||||||
San Francisco, CA, City & County Airports Commission, International Airport Rev., “A”, 5%, 5/01/28 | 6,000,000 | 6,474,960 | ||||||
San Francisco, CA, City & County Redevelopment Successor Agency Tax Allocation (Mission Bay South Public Improvements), “A”, 5%, 8/01/43 | 340,000 | 351,342 | ||||||
San Jose, CA, Airport Rev., “A-2”, 5.25%, 3/01/34 | 7,570,000 | 8,112,542 | ||||||
San Mateo County, CA, Community College District (Election of 2005), Capital Appreciation, “A”, NATL, 0%, 9/01/26 | 5,100,000 | 3,263,337 | ||||||
State of California, 5%, 4/01/24 | 4,365,000 | 5,011,544 | ||||||
State of California, 5.25%, 10/01/28 | 2,965,000 | 3,369,307 | ||||||
State of California, 6.5%, 4/01/33 | 4,000,000 | 4,881,320 | ||||||
State of California, 6%, 11/01/39 | 3,000,000 | 3,514,470 | ||||||
State of California, General Obligation, “A”, FRN, 0.74%, 5/01/33 | 9,670,000 | 9,695,722 | ||||||
Upland, CA, COP (San Antonio Community Hospital), 6.375%, 1/01/32 | 2,075,000 | 2,296,444 | ||||||
Upland, CA, COP (San Antonio Community Hospital), 6.5%, 1/01/41 | 915,000 | 1,015,311 | ||||||
West Contra Costa, CA, Unified School District (Election of 2005), Capital Appreciation, “C”, ASSD GTY, 0%, 8/01/29 | 3,440,000 | 1,749,550 | ||||||
Whittier, CA, Union High School District, Capital Appreciation, 0%, 8/01/34 | 2,005,000 | 622,312 | ||||||
|
| |||||||
$ | 275,877,265 | |||||||
Colorado - 3.0% | ||||||||
Colorado Educational & Cultural Facilities Authority Rev. (Academy of Charter Schools Project), 5.625%, 5/01/40 | $ | 1,815,000 | $ | 1,875,204 | ||||
Colorado Educational & Cultural Facilities Authority Rev. (Liberty Common Project), 5%, 1/15/29 | 195,000 | 202,948 | ||||||
Colorado Educational & Cultural Facilities Authority Rev. (Liberty Common Project), 5%, 1/15/39 | 605,000 | 599,858 | ||||||
Colorado Educational & Cultural Facilities Authority Rev. (Liberty Common Project), 5%, 1/15/44 | 605,000 | 592,107 | ||||||
Colorado Educational & Cultural Facilities Authority Rev. (Montessori Charter School Project), 5%, 7/15/37 | 545,000 | 541,250 | ||||||
Colorado Educational & Cultural Facilities Authority Rev. (Pinnacle Charter School Building Corp.), 5%, 6/01/29 | 700,000 | 748,223 | ||||||
Colorado Educational & Cultural Facilities Authority Rev. (Twin Peaks Charter Academy), 7%, 11/15/38 | 4,330,000 | 4,679,085 | ||||||
Colorado Health Facilities Authority Rev. (Evangelical Lutheran Good Samaritan Society), 5.625%, 6/01/43 | 1,195,000 | 1,255,539 |
15
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Colorado - continued | ||||||||
Colorado Health Facilities Authority Rev. (SCL Health System), “A”, 5%, 1/01/44 | $ | 4,620,000 | $ | 4,829,979 | ||||
Colorado Housing & Finance Authority, Solid Waste Rev. (Waste Management, Inc.), 5.7%, 7/01/18 | 1,960,000 | 2,192,554 | ||||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6.5%, 1/15/30 | 6,150,000 | 6,780,806 | ||||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6%, 1/15/34 | 5,000,000 | 5,285,650 | ||||||
Colorado State University Board of Governors, System Enterprise Rev., “B”, 5%, 3/01/25 | 3,000,000 | 3,493,950 | ||||||
Denver, CO, City & County Airport Rev. (United Airlines), 5.25%, 10/01/32 | 3,975,000 | 3,798,391 | ||||||
Denver, CO, City & County Airport Rev. (United Airlines), 5.75%, 10/01/32 | 615,000 | 615,812 | ||||||
Denver, CO, City & County Airport Systems Rev., “A”, 5%, 11/15/28 | 1,930,000 | 2,094,320 | ||||||
Denver, CO, City & County School District No. 1, 5%, 12/01/24 | 10,000,000 | 11,470,000 | ||||||
Denver, CO, Single Family Mortgage Rev., GNMA, 7.3%, 11/01/31 | 15,000 | 15,077 | ||||||
Northwest Parkway, CO, Public Highway Authority Rev., “C”, ETM, AGM, 5.35%, 6/15/16 (c) | 1,000,000 | 1,105,040 | ||||||
Public Authority for Colorado Energy Natural Gas Purchase Rev., 6.5%, 11/15/38 | 3,725,000 | 4,703,111 | ||||||
University of Colorado, Enterprise Rev., 5%, 6/01/29 | 4,220,000 | 4,657,065 | ||||||
|
| |||||||
$ | 61,535,969 | |||||||
Connecticut - 0.9% | ||||||||
Connecticut Housing Finance Authority Rev., (Housing Mortgage Finance Program), “B-2”, 4%, 11/15/32 | $ | 3,000,000 | $ | 3,266,100 | ||||
State of Connecticut, Special Tax Obligation Rev., “A”, 5%, 12/01/28 | 4,595,000 | 5,139,599 | ||||||
State of Connecticut, Special Tax Obligation Rev., “A”, 5%, 12/01/29 | 4,595,000 | 5,132,983 | ||||||
State of Connecticut, Special Tax Obligation Rev., “A”, 5%, 12/01/30 | 4,615,000 | 5,125,557 | ||||||
|
| |||||||
$ | 18,664,239 | |||||||
Delaware - 0.2% | ||||||||
Delaware Housing Authority Rev. (Single Family), “C”, 6.25%, 7/01/37 | $ | 295,000 | $ | 304,275 | ||||
University of Delaware Rev., “C”, FRN, 0.7%, 11/01/37 (b) | 5,000,000 | 4,965,150 | ||||||
|
| |||||||
$ | 5,269,425 |
16
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
District of Columbia - 1.1% | ||||||||
District of Columbia Rev. (Georgetown University), Convertible Capital Appreciation, BHAC, 0% to 4/01/18, 5% to 4/01/40 | $ | 11,570,000 | $ | 9,774,567 | ||||
District of Columbia Rev. (Kipp, D.C. Charter School), “A”, 6%, 7/01/43 | 1,450,000 | 1,533,056 | ||||||
District of Columbia Rev. (Kipp, D.C. Charter School), “A”, 6%, 7/01/33 | 560,000 | 607,908 | ||||||
District of Columbia Student Dormitory Rev. (Provident Group - Howard Properties LLC), 5%, 10/01/30 | 3,235,000 | 3,129,151 | ||||||
District of Columbia Student Dormitory Rev. (Provident Group - Howard Properties LLC), 5%, 10/01/35 | 4,080,000 | 3,742,829 | ||||||
District of Columbia Student Dormitory Rev. (Provident Group - Howard Properties LLC), 5%, 10/01/45 | 4,705,000 | 4,072,272 | ||||||
District of Columbia, Tobacco Settlement, 6.25%, 5/15/24 | 520,000 | 521,430 | ||||||
|
| |||||||
$ | 23,381,213 | |||||||
Florida - 4.2% | ||||||||
Arborwood Community Development District, FL, Capital Improvement Rev. (Master Infrastructure Project), “B”, 5.1%, 5/01/14 (a)(d) | $ | 40,000 | $ | 24,000 | ||||
Arborwood Community Development District, FL, Capital Improvement Rev. (Master Infrastructure Projects), “B-2”, 5.1%, 5/01/14 | 105,000 | 105,358 | ||||||
Bay County, FL, Housing Finance Authority, Multi-Family Rev. (Andrews Place II Apartments), AGM, 5%, 10/01/35 | 1,045,000 | 1,047,069 | ||||||
Capital Region Community Development District, FL, Capital Improvement Rev., “A”, 7%, 5/01/39 | 870,000 | 863,127 | ||||||
Capital Trust Agency Rev. (Aero Miami FX LLC), “A”, 5.35%, 7/01/29 | 3,790,000 | 3,955,017 | ||||||
Citizens Property Insurance Corp., “A-1”, 5.25%, 6/01/17 | 750,000 | 843,683 | ||||||
Citrus County, FL, Hospital Board Rev. (Citrus Memorial Hospital), 6.25%, 8/15/23 | 330,000 | 308,850 | ||||||
Collier County, FL, Educational Facilities Authority Rev. (Ave Maria University, Inc. Project), “A”, 6.125%, 6/01/43 | 4,300,000 | 4,379,464 | ||||||
Concord Station Community Development District, FL, Special Assessment, 5%, 5/01/15 | 50,000 | 49,869 | ||||||
Florida Board of Education, Capital Outlay, “E”, 5%, 6/01/23 | 250,000 | 291,265 | ||||||
Florida Board of Education, Capital Outlay, ETM, 9.125%, 6/01/14 (c) | 585,000 | 593,401 | ||||||
Florida Board of Education, Lottery Rev., “A”, 5%, 7/01/20 | 7,855,000 | 9,307,625 | ||||||
Florida Citizens Property Insurance Corp., “A-1”, 5%, 6/01/19 | 505,000 | 577,861 | ||||||
Florida Development Finance Corp. Educational Facilities Rev. (Renaissance Charter School), “A”, 6%, 9/15/30 | 2,425,000 | 2,412,390 | ||||||
Florida Development Finance Corp. Educational Facilities Rev. (Renaissance Charter School), “A”, 6%, 9/15/40 | 5,130,000 | 4,863,497 |
17
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Florida - continued | ||||||||
Florida Housing Finance Corp. Rev. (Homeowner Mortgage), “1”, GNMA, 4.8%, 7/01/31 | $ | 380,000 | $ | 382,025 | ||||
Florida Municipal Power Agency Rev., All Requirements, “A”, 6.25%, 10/01/31 | 400,000 | 451,564 | ||||||
Florida Power Agency Rev., “A”, 5%, 10/01/31 | 1,000,000 | 1,049,570 | ||||||
Florida State University Board of Governors, System Improvement Rev., 6.25%, 7/01/30 | 2,685,000 | 3,093,335 | ||||||
Heritage Harbour North Community Development District, FL, Capital Improvement Rev., 6.375%, 5/01/38 | 775,000 | 734,437 | ||||||
Hillsborough County, FL, Industrial Development Authority Rev. (University Community Hospital), “A”, 5.625%, 8/15/18 (c) | 300,000 | 357,858 | ||||||
Hillsborough County, FL, Industrial Development Authority Rev. (University Community Hospital), ETM, NATL, 6.5%, 8/15/19 (c) | 1,000,000 | 1,164,480 | ||||||
Hillsborough County, FL, Industrial Development Authority, Pollution Control Rev. (Tampa Electric Co.), “A”, 5.65%, 5/15/18 | 500,000 | 581,160 | ||||||
Homestead 50, FL, Community Development District, Special Assessment, “A”, 6%, 5/01/37 | 1,550,000 | 1,129,036 | ||||||
Jacksonville, FL, Transportation Authority Rev., ETM, 9.2%, 1/01/15 (c) | 405,000 | 432,001 | ||||||
Killarney Community Development District, FL, Special Assessment, “B”, 5.125%, 5/01/09 (a)(d) | 190,000 | 85,500 | ||||||
Main Street Community Development District, FL, “A”, 6.8%, 5/01/38 | 510,000 | 510,107 | ||||||
Miami-Dade County, FL, Aviation Rev., “B”, AGM, 5%, 10/01/35 | 5,885,000 | 6,139,997 | ||||||
Miami-Dade County, FL, Educational Facilities Authority Rev. (University of Miami), “A”, 5.75%, 4/01/28 | 1,875,000 | 1,994,344 | ||||||
Miami-Dade County, FL, Health Facilities Authority, Hospital Rev. (Miami Children’s Hospital), “A”, 6.125%, 8/01/42 | 2,240,000 | 2,422,986 | ||||||
Miami-Dade County, FL, School Board, COP, “B”, ASSD GTY, 5%, 5/01/33 | 500,000 | 518,815 | ||||||
Miami-Dade County, FL, Special Obligation, Capital Appreciation, “A”, NATL, 0%, 10/01/32 | 2,000,000 | 774,260 | ||||||
Miami-Dade County, FL, Water & Sewer Rev., AGM, 5%, 10/01/39 | 1,000,000 | 1,054,940 | ||||||
Mid-Bay Bridge Authority, FL, Springing Lien Rev., “A”, 7.25%, 10/01/40 | 6,920,000 | 7,786,661 | ||||||
Middle Village Community Development District, FL, Special Assessment, “A”, 5.8%, 5/01/22 | 60,000 | 50,628 | ||||||
Old Palm Community Development District, FL, Special Assessment (Palm Beach Gardens), “B”, 5.375%, 5/01/14 | 50,000 | 49,971 | ||||||
Orange County, FL, Health Facilities Authority, Hospital Rev. (Orlando Regional Healthcare), “C”, 5.25%, 10/01/35 | 1,000,000 | 1,058,540 | ||||||
Palm Beach County, FL, Solid Waste Authority Rev. Improvement, BHAC, 5%, 10/01/27 | 295,000 | 339,011 |
18
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Florida - continued | ||||||||
Parkway Center Community Development District, FL, Special Assessment, “B”, 7%, 5/01/23 | $ | 475,000 | $ | 462,622 | ||||
Pinellas County, FL, Sewer Rev., AGM, 5%, 10/01/32 | 330,000 | 330,891 | ||||||
Polk County, FL, Utility Systems Rev., “A”, FGIC, 5%, 10/01/30 | 1,000,000 | 1,023,960 | ||||||
Seminole County, FL, Water & Sewer Rev., Unrefunded Balance, NATL, 6%, 10/01/19 | 585,000 | 608,587 | ||||||
Seminole Tribe, FL, Special Obligation Rev., “A”, 5.75%, 10/01/22 (n) | 2,850,000 | 3,036,989 | ||||||
Seminole Tribe, FL, Special Obligation Rev., “A”, 5.5%, 10/01/24 (n) | 2,000,000 | 2,097,600 | ||||||
South Broward, FL, Hospital District Rev., 5%, 5/01/36 | 500,000 | 511,445 | ||||||
South Lake County, FL, Hospital District Rev. (South Lake Hospital), “A”, 6%, 4/01/29 | 1,025,000 | 1,117,947 | ||||||
St. John’s County, FL, Industrial Development Authority (Bayview Project), “A”, 5.2%, 10/01/27 | 150,000 | 128,546 | ||||||
St. John’s County, FL, Industrial Development Authority Rev. (Presbyterian Retirement), “A”, 6%, 8/01/45 | 6,795,000 | 7,032,553 | ||||||
Sterling Hill Community Development District, FL, Capital Improvement Rev., “B”, 5.5%, 11/01/10 (d) | 55,000 | 35,239 | ||||||
Sumter County, FL, Industrial Development Authority Hospital Rev. (Central Florida Health Alliance Projects), “A”, 5%, 7/01/26 | 245,000 | 255,150 | ||||||
Sumter County, FL, Industrial Development Authority Hospital Rev. (Central Florida Health Alliance Projects), “A”, 5%, 7/01/29 | 225,000 | 231,453 | ||||||
Sumter County, FL, Industrial Development Authority Hospital Rev. (Central Florida Health Alliance Projects), “A”, 5.125%, 7/01/34 | 485,000 | 491,834 | ||||||
Sumter County, FL, Industrial Development Authority Hospital Rev. (Central Florida Health Alliance Projects), “A”, 5.25%, 7/01/44 | 1,455,000 | 1,473,711 | ||||||
Tallahassee, FL, Health Facilities Rev. (Tallahassee Memorial Healthcare, Inc.), 6.25%, 12/01/20 | 3,300,000 | 3,305,610 | �� | |||||
Tampa Bay Water, FL, Regional Water Supply Authority, Utility System Rev., FGIC, 4.75%, 10/01/33 | 885,000 | 918,064 | ||||||
Tuscany Reserve Community Development District, FL, Special Assessment, “B”, 5.25%, 5/01/16 | 315,000 | 317,737 | ||||||
Volusia County, FL, Tourist Development Tax Rev., AGM, 5%, 12/01/34 | 815,000 | 828,790 | ||||||
Watergrass Community Development District, FL, Special Assessment, “B”, 6.96%, 11/01/17 | 30,000 | 29,167 | ||||||
|
| |||||||
$ | 86,021,597 | |||||||
Georgia - 4.0% | ||||||||
Americus and Sumter County, GA, Hospital Authority Rev. (Magnolia Manor Obligated Group), “A”, 6.25%, 5/15/33 | $ | 965,000 | $ | 985,748 | ||||
Americus and Sumter County, GA, Hospital Authority Rev. (Magnolia Manor Obligated Group), “A”, 6.375%, 5/15/43 | 965,000 | 978,558 |
19
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Georgia - continued | ||||||||
Atlanta, GA, Airport Rev., “B”, 5%, 1/01/25 | $ | 1,415,000 | $ | 1,600,860 | ||||
Atlanta, GA, Airport Rev., “B”, 5%, 1/01/26 | 800,000 | 893,392 | ||||||
Atlanta, GA, Water & Wastewater Rev., “A”, 6%, 11/01/22 | 2,770,000 | 3,327,684 | ||||||
Brunswick, GA, Hospital Authority Rev. (Glynn-Brunswick Memorial Hospital), 5.625%, 8/01/34 | 1,320,000 | 1,394,184 | ||||||
Clayton County, GA, Development Authority Special Facilities Rev. (Delta Airlines, Inc.), “A”, 8.75%, 6/01/29 | 1,295,000 | 1,554,207 | ||||||
Clayton County, GA, Development Authority Special Facilities Rev. (Delta Airlines, Inc.), “B”, 9%, 6/01/35 | 970,000 | 1,028,394 | ||||||
DeKalb County, GA, Hospital Authority Rev. (DeKalb Medical Center, Inc.), 6.125%, 9/01/40 | 4,850,000 | 4,914,990 | ||||||
DeKalb County, GA, Water & Sewer Rev., “A”, 5.25%, 10/01/28 | 5,285,000 | 5,998,105 | ||||||
DeKalb County, GA, Water & Sewer Rev., “A”, 5.25%, 10/01/29 | 1,415,000 | 1,596,884 | ||||||
DeKalb County, GA, Water & Sewer Rev., “A”, 5.25%, 10/01/30 | 4,345,000 | 4,875,916 | ||||||
DeKalb County, GA, Water & Sewer Rev., “A”, 5.25%, 10/01/31 | 235,000 | 262,232 | ||||||
DeKalb County, GA, Water & Sewer Rev., “A”, 5.25%, 10/01/41 | 3,910,000 | 4,250,170 | ||||||
Fulton County, GA, Water & Sewer Rev., 5%, 1/01/26 | 3,680,000 | 4,157,370 | ||||||
Fulton County, GA, Water & Sewer Rev., 5%, 1/01/27 | 2,285,000 | 2,560,571 | ||||||
Georgia Housing & Finance Authority Rev., 3%, 6/01/43 | 1,500,000 | 1,531,275 | ||||||
Georgia Housing & Finance Authority Rev., Single Family Mortgage, “A-1”, 4%, 6/01/44 | 2,605,000 | 2,853,152 | ||||||
Georgia Housing & Finance Authority Rev., Single Family Mortgage, “B-2”, 4.5%, 12/01/24 | 1,195,000 | 1,198,203 | ||||||
Georgia Main Street Natural Gas, Inc., Gas Project Rev., “A”, 5%, 3/15/22 | 4,545,000 | 5,135,577 | ||||||
Georgia Main Street Natural Gas, Inc., Gas Project Rev., “A”, 5.5%, 9/15/26 | 845,000 | 950,642 | ||||||
Georgia Main Street Natural Gas, Inc., Gas Project Rev., “A”, 5.5%, 9/15/28 | 1,740,000 | 1,943,023 | ||||||
Georgia Municipal Electric Authority Power Rev., NATL, 6.375%, 1/01/16 | 2,000,000 | 2,124,400 | ||||||
Georgia Municipal Electric Authority Power Rev., AMBAC, 6.5%, 1/01/17 | 4,985,000 | 5,457,229 | ||||||
Georgia Municipal Electric Authority Power Rev., NATL, 6.5%, 1/01/20 | 4,325,000 | 4,821,424 | ||||||
Georgia Municipal Electric Authority Power Rev., “GG”, 5%, 1/01/26 | 3,065,000 | 3,462,806 | ||||||
Georgia Municipal Electric Authority Power Rev., ETM, AMBAC, 6.5%, 1/01/17 (c) | 210,000 | 225,219 | ||||||
Marietta, GA, Development Facilities Authority Rev. (Life University), 7%, 6/15/30 | 540,000 | 557,701 | ||||||
Marietta, GA, Development Facilities Authority Rev. (Life University), 7%, 6/15/39 | 645,000 | 651,895 |
20
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Georgia - continued | ||||||||
Metropolitan Atlanta, GA, Rapid Transit Authority Rev., 6.25%, 7/01/18 | $ | 3,125,000 | $ | 3,515,688 | ||||
Private Colleges & Universities Authority Rev., GA, (Emory University), “A”, 5%, 10/01/43 | 4,510,000 | 4,904,219 | ||||||
Rockdale County, GA, Development Authority Project Rev. (Visy Paper Project), “A”, 6.125%, 1/01/34 | 2,055,000 | 2,079,496 | ||||||
|
| |||||||
$ | 81,791,214 | |||||||
Guam - 0.1% | ||||||||
Guam Government, “A”, 7%, 11/15/39 | $ | 910,000 | $ | 963,863 | ||||
Guam International Airport Authority Rev., “C”, 5%, 10/01/16 | 360,000 | 379,933 | ||||||
Guam International Airport Authority Rev., “C”, 5%, 10/01/17 | 600,000 | 636,456 | ||||||
Guam Water & Wastewater System Rev., 5.25%, 7/01/20 | 130,000 | 144,892 | ||||||
Guam Water & Wastewater System Rev., 5.25%, 7/01/21 | 370,000 | 409,601 | ||||||
|
| |||||||
$ | 2,534,745 | |||||||
Hawaii - 1.5% | ||||||||
Hawaii Housing & Community Development Corp., HI, Rental Housing System Rev., “A”, 4.65%, 1/01/29 | $ | 7,795,000 | $ | 7,805,991 | ||||
Hawaii Housing & Community Development Corp., HI, Rental Housing System Rev., “A”, 4.75%, 1/01/33 | 9,390,000 | 9,403,334 | ||||||
Hawaii Department of Budget & Finance Special Purpose Rev. (Hawaiian Electric Co. & Subsidiary), 6.5%, 7/01/39 | 3,655,000 | 4,039,469 | ||||||
Hawaii Department of Budget & Finance, Special Purpose Rev. (15 Craigside Project), “A”, 8.75%, 11/15/29 | 375,000 | 421,241 | ||||||
Hawaii Department of Budget & Finance, Special Purpose Rev. (15 Craigside Project), “A”, 9%, 11/15/44 | 1,100,000 | 1,233,584 | ||||||
State of Hawaii, “DZ”, 5%, 12/01/31 | 2,230,000 | 2,491,088 | ||||||
State of Hawaii, Highway Rev., “A”, 5%, 1/01/30 | 3,695,000 | 4,099,676 | ||||||
State of Hawaii, Highway Rev., “A”, 5%, 1/01/31 | 1,380,000 | 1,521,257 | ||||||
State of Hawaii, Highway Rev., “A”, 5%, 1/01/32 | 920,000 | 1,010,896 | ||||||
|
| |||||||
$ | 32,026,536 | |||||||
Idaho - 0.0% | ||||||||
Idaho Health Facilities Authority Rev. (The Terraces of Boise Project), “B3”, 5.25%, 10/01/20 | $ | 450,000 | $ | 450,572 | ||||
Illinois - 6.7% | ||||||||
Chicago, IL, Board of Education, NATL, 6.25%, 1/01/15 | $ | 5,530,000 | $ | 5,749,375 | ||||
Chicago, IL, Greater Chicago Metropolitan Water Reclamation District, “C”, 5%, 12/01/29 | 9,145,000 | 10,014,415 | ||||||
Chicago, IL, O’Hare International Airport Rev., Customer Facility Charge, AGM, 5.25%, 1/01/32 | 945,000 | 1,009,799 |
21
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Illinois - continued | ||||||||
Chicago, IL, O’Hare International Airport Rev., Customer Facility Charge, AGM, 5.25%, 1/01/33 | $ | 470,000 | $ | 499,408 | ||||
Chicago, IL, O’Hare International Airport Rev., Customer Facility Charge, AGM, 5.5%, 1/01/43 | 1,890,000 | 1,942,637 | ||||||
Chicago, IL, O’Hare International Airport Rev., Third Lien, “A”, 5.625%, 1/01/35 | 7,125,000 | 7,794,251 | ||||||
Chicago, IL, Single Family Mortgage Rev., “C”, GNMA, 5.5%, 6/01/38 | 295,000 | 304,505 | ||||||
Chicago, IL, Single Family Mortgage Rev., “C”, GNMA, 5.75%, 12/01/42 | 325,000 | 333,869 | ||||||
Chicago, IL, Transit Authority Sales Tax Receipts Rev., 5.25%, 12/01/29 | 1,755,000 | 1,908,089 | ||||||
Chicago, IL, Transit Authority Sales Tax Receipts Rev., 5.25%, 12/01/31 | 655,000 | 705,396 | ||||||
Chicago, IL, Transit Authority Sales Tax Receipts Rev., 5.25%, 12/01/40 | 4,685,000 | 4,938,224 | ||||||
Illinois Finance Authority Rev. (Christian Homes, Inc.), 5.5%, 5/15/23 | 3,355,000 | 3,407,439 | ||||||
Illinois Finance Authority Rev. (Franciscan Communities, Inc.), “A”, 4.75%, 5/15/33 | 2,145,000 | 1,853,301 | ||||||
Illinois Finance Authority Rev. (Franciscan Communities, Inc.), “A”, 5.5%, 5/15/37 | 3,285,000 | 3,049,860 | ||||||
Illinois Finance Authority Rev. (Franciscan Communities, Inc.), “A”, 5.125%, 5/15/43 | 1,500,000 | 1,290,945 | ||||||
Illinois Finance Authority Rev. (Illinois Institute of Technology), “A”, 5%, 4/01/31 | 2,745,000 | 2,565,916 | ||||||
Illinois Finance Authority Rev. (KishHealth Systems Obligated Group), 5.75%, 10/01/28 | 2,990,000 | 3,210,931 | ||||||
Illinois Finance Authority Rev. (O.S.F. Healthcare Systems) “A”, 7%, 11/15/29 | 2,975,000 | 3,434,667 | ||||||
Illinois Finance Authority Rev. (O.S.F. Healthcare Systems) “A”, 7.125%, 11/15/37 | 2,445,000 | 2,812,312 | ||||||
Illinois Finance Authority Rev. (Provena Health), “A”, 7.75%, 8/15/34 | 3,685,000 | 4,449,011 | ||||||
Illinois Finance Authority Rev. (Rehabilitation Institute of Chicago), “A”, 6%, 7/01/43 | 6,315,000 | 6,830,746 | ||||||
Illinois Finance Authority Rev. (Resurrection Health), 6.125%, 5/15/25 | 6,900,000 | 7,602,558 | ||||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 6.875%, 8/15/38 | 1,500,000 | 1,637,460 | ||||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 7%, 8/15/44 | 2,455,000 | 2,688,250 |
22
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Illinois - continued | ||||||||
Illinois Finance Authority Rev. (Smith Village), “A”, 6.125%, 11/15/25 | $ | 1,095,000 | $ | 1,090,412 | ||||
Illinois Finance Authority Rev. (Smith Village), “A”, 6.25%, 11/15/35 | 1,945,000 | 1,869,184 | ||||||
Illinois Finance Authority Student Housing Rev. (Illinois State University), 6.75%, 4/01/31 | 2,730,000 | 3,000,625 | ||||||
Illinois Finance Authority Student Housing Rev. (Northern Illinois University Project), 6.625%, 10/01/31 | 4,210,000 | 4,674,868 | ||||||
Illinois Railsplitter Tobacco Settlement Authority, 5.5%, 6/01/23 | 3,970,000 | 4,596,823 | ||||||
Illinois Railsplitter Tobacco Settlement Authority, 6.25%, 6/01/24 | 2,610,000 | 2,876,716 | ||||||
Illinois Railsplitter Tobacco Settlement Authority, 6%, 6/01/28 | 8,750,000 | 9,864,663 | ||||||
Illinois Sales Tax Rev., “P”, ETM, 6.5%, 6/15/22 (c) | 5,000,000 | 5,872,900 | ||||||
Illinois Toll Highway Authority Rev., “A”, 5%, 12/01/22 | 5,000,000 | 5,903,850 | ||||||
Illinois Toll Highway Authority Rev., “B”, 5.5%, 1/01/33 | 5,645,000 | 6,027,449 | ||||||
State of Illinois, 5%, 8/01/25 | 1,060,000 | 1,148,446 | ||||||
State of Illinois, 5.5%, 7/01/33 | 1,395,000 | 1,508,218 | ||||||
State of Illinois, 5.5%, 7/01/38 | 6,850,000 | 7,346,831 | ||||||
State of Illinois, “B”, 5.25%, 6/15/34 | 1,275,000 | 1,362,656 | ||||||
|
| |||||||
$ | 137,177,005 | |||||||
Indiana - 2.0% | ||||||||
Indiana Economic Development Finance Authority Rev. (Republic Services, Inc. Project), “A”, FRN, 0.47%, 5/01/34 (b) | $ | 2,685,000 | $ | 2,685,081 | ||||
Indiana Economic Development Finance Authority Rev. (Republic Services, Inc. Project), “B”, FRN, 0.32%, 5/01/28 (b) | 1,680,000 | 1,680,050 | ||||||
Indiana Finance Authority Rev. (BHI Senior Living), “A”, 6%, 11/15/41 | 2,840,000 | 3,034,881 | ||||||
Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), “B”, 5%, 1/01/19 | 1,515,000 | 1,633,625 | ||||||
Indiana Finance Authority Rev. (State Revolving Fund Program), “A”, 5%, 2/01/29 | 4,000,000 | 4,506,720 | ||||||
Indiana Finance Authority Rev., (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/35 | 2,190,000 | 2,215,711 | ||||||
Indiana Finance Authority Rev., (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/40 | 5,370,000 | 5,361,784 | ||||||
Indiana Finance Authority, Hospital Rev. (Deaconess Hospital, Inc.), “A”, 6.75%, 3/01/39 | 3,000,000 | 3,337,560 | ||||||
Indiana Health & Educational Facilities Finance Authority, Hospital Rev. (Clarian Health), “B”, 5%, 2/15/33 | 2,490,000 | 2,536,937 | ||||||
Indiana University Rev., “A”, 5%, 6/01/32 | 525,000 | 582,430 | ||||||
Indianapolis, IN, Multi-Family Rev. (Cambridge Station Apartments II), FNMA, 5.25%, 1/01/39 (b) | 1,375,000 | 1,377,613 |
23
Table of Contents
Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Indiana - continued | ||||||||
Knox County, IN, Economic Development Rev. (Good Samaritan Hospital), “A”, 5%, 4/01/42 | $ | 1,170,000 | $ | 1,156,100 | ||||
Noblesville, IN, Redevelopment Authority Lease Rental, 5.25%, 8/01/25 | 2,000,000 | 2,185,840 | ||||||
Richmond, IN, Hospital Authority Rev. (Reid Hospital & Health Center Services), “A”, 6.625%, 1/01/39 | 4,715,000 | 5,148,874 | ||||||
St. Joseph County, IN, Educational Facilities Rev. (University of Notre Dame), 6.5%, 3/01/26 | 1,000,000 | 1,349,530 | ||||||
University of Southern Indiana Rev. (Student Fee), “J”, ASSD GTY, 5.75%, 10/01/28 | 1,875,000 | 2,159,006 | ||||||
Valparaiso, IN, Exempt Facilities Rev. (Pratt Paper LLC Project), 6.75%, 1/01/34 | 330,000 | 349,269 | ||||||
Valparaiso, IN, Exempt Facilities Rev. (Pratt Paper LLC Project), 7%, 1/01/44 | 755,000 | 802,557 | ||||||
|
| |||||||
$ | 42,103,568 | |||||||
Iowa - 0.8% | ||||||||
Iowa Finance Authority Midwestern Disaster Area Rev. (Iowa Fertilizer Co.), 5%, 12/01/19 | $ | 1,435,000 | $ | 1,431,413 | ||||
Iowa Finance Authority Midwestern Disaster Area Rev. (Iowa Fertilizer Co.), 5.5%, 12/01/22 | 1,065,000 | 1,062,881 | ||||||
Iowa Finance Authority Rev. (Iowa Health System Obligated Group), “A”, 5.25%, 2/15/44 | 3,000,000 | 3,127,200 | ||||||
Iowa Finance Authority, Health Care Facilities Rev. (Care Initiatives), “A”, 5.5%, 7/01/25 | 1,205,000 | 1,221,629 | ||||||
Iowa Student Loan Liquidity Corp., “A-2”, 5.5%, 12/01/25 | 1,845,000 | 1,886,494 | ||||||
Iowa Student Loan Liquidity Corp., “A-2”, 5.6%, 12/01/26 | 1,850,000 | 1,890,275 | ||||||
Iowa Student Loan Liquidity Corp., “A-2”, 5.7%, 12/01/27 | 155,000 | 158,653 | ||||||
Iowa Student Loan Liquidity Corp., “A-2”, 5.75%, 12/01/28 | 3,135,000 | 3,202,841 | ||||||
Iowa Tobacco Settlement Authority, Tobacco Settlement Rev., Asset Backed, “B”, 5.6%, 6/01/34 | 3,070,000 | 2,606,123 | ||||||
|
| |||||||
$ | 16,587,509 | |||||||
Kansas - 0.3% | ||||||||
Sedgwick & Shawnee Counties, KS, Single Family Housing Rev., “A”, GNMA, 6.25%, 12/01/35 | $ | 85,000 | $ | 88,729 | ||||
Sedgwick & Shawnee Counties, KS, Single Family Housing Rev., “A”, GNMA, 5.8%, 12/01/36 | 1,060,000 | 1,102,951 | ||||||
Sedgwick & Shawnee Counties, KS, Single Family Housing Rev., “A-1”, GNMA, 5.75%, 12/01/37 | 95,000 | 100,037 | ||||||
Sedgwick & Shawnee Counties, KS, Single Family Housing Rev., “A-3”, GNMA, 5.5%, 12/01/37 | 435,000 | 459,960 |
24
Table of Contents
Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Kansas - continued | ||||||||
Sedgwick & Shawnee Counties, KS, Single Family Housing Rev., “A-4”, GNMA, 5.85%, 6/01/37 | $ | 110,000 | $ | 110,615 | ||||
Sedgwick & Shawnee Counties, KS, Single Family Housing Rev., “A-5”, GNMA, 5.8%, 12/01/27 | 150,000 | 155,678 | ||||||
Sedgwick & Shawnee Counties, KS, Single Family Housing Rev., “A-5”, GNMA, 5.7%, 12/01/36 | 1,180,000 | 1,276,831 | ||||||
Sedgwick & Shawnee Counties, KS, Single Family Housing Rev., “A-5”, GNMA, 5.9%, 12/01/37 | 115,000 | 115,652 | ||||||
Sedgwick & Shawnee Counties, KS, Single Family Mortgage Rev., “A”, GNMA, 5.45%, 6/01/38 | 945,000 | 977,007 | ||||||
Wyandotte County/Kansas City, KS, Unified Government Special Obligation Rev., Capital Appreciation, “B”, 0%, 6/01/21 | 2,600,000 | 1,785,914 | ||||||
|
| |||||||
$ | 6,173,374 | |||||||
Kentucky - 1.6% | ||||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Baptist Healthcare System), “A”, 5.375%, 8/15/24 | $ | 2,305,000 | $ | 2,530,383 | ||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Baptist Healthcare System), “A”, 5.625%, 8/15/27 | 770,000 | 836,667 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6%, 6/01/30 | 640,000 | 679,443 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6.375%, 6/01/40 | 4,445,000 | 4,758,017 | ||||||
Kentucky Economic Development Finance Authority, Solid Waste Refunding Rev. (Republic Services, Inc.), “B”, FRN, 0.32%, 4/01/31 (b) | 670,000 | 670,020 | ||||||
Kentucky Public Transportation Infrastructure Authority Rev. (Downtown Crossing Project), Subordinate Toll Rev., “A”, 5%, 7/01/17 | 5,535,000 | 6,142,411 | ||||||
Kentucky Turnpike Authority, Economic Development Road Rev. (Revitalization Projects), “A”, 5%, 7/01/32 | 2,000,000 | 2,216,760 | ||||||
Knox County, KY, SYNCORA, 5.5%, 12/01/14 (c) | 640,000 | 662,310 | ||||||
Knox County, KY, SYNCORA, 5.625%, 12/01/14 (c) | 1,150,000 | 1,191,032 | ||||||
Louisville & Jefferson County, KY, Metro Government College Rev. (Bellarmine University, Inc. Project), 6.125%, 5/01/39 | 3,000,000 | 3,159,390 | ||||||
Louisville & Jefferson County, KY, Metropolitan Government Healthcare Systems Rev. (Norton Healthcare, Inc.), 5.25%, 10/01/36 | 4,655,000 | 4,701,503 | ||||||
Owen County, KY, Waterworks System Rev. (American Water Co. Project), “B”, 5.625%, 9/01/39 | 1,670,000 | 1,719,666 | ||||||
University of Kentucky, General Receipts, “A”, 5%, 4/01/36 | 1,380,000 | 1,525,107 | ||||||
University of Kentucky, General Receipts, “A”, 5%, 4/01/37 | 2,570,000 | 2,831,215 | ||||||
|
| |||||||
$ | 33,623,924 |
25
Table of Contents
Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Louisiana - 2.2% | ||||||||
Jefferson Parish, LA, Hospital Rev., Hospital Service District No. 1 (West Jefferson Medical Center), “B”, AGM, 5.25%, 1/01/28 | $ | 1,980,000 | $ | 2,098,780 | ||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.25%, 7/01/31 | 3,355,000 | 3,660,137 | ||||||
Louisiana Environmental Facilities & Community Development Authority Rev. (Westlake Chemical), 6.75%, 11/01/32 | 1,600,000 | 1,768,288 | ||||||
Louisiana Environmental Facilities & Community Development Authority Rev. (Westlake Chemical), “A”, 6.5%, 8/01/29 | 1,400,000 | 1,561,560 | ||||||
Louisiana Environmental Facilities & Community Development Authority Rev. (Westlake Chemical), “A-2”, 6.5%, 11/01/35 | 6,000,000 | 6,583,440 | ||||||
Louisiana Public Facilities Authority Hospital Rev. (Lake Charles Memorial Hospital), 6.375%, 12/01/34 | 2,745,000 | 2,793,724 | ||||||
Louisiana Public Facilities Authority Rev. (Entergy Gulf States Louisiana LLC), “A”, 5%, 9/01/28 | 10,000,000 | 10,240,600 | ||||||
Louisiana Stadium & Exposition District Rev., “A”, 5%, 7/01/20 | 665,000 | 760,128 | ||||||
Louisiana Stadium & Exposition District Rev., “A”, 5%, 7/01/21 | 830,000 | 949,528 | ||||||
Louisiana Stadium & Exposition District Rev., “A”, 5%, 7/01/22 | 500,000 | 572,145 | ||||||
Louisiana Stadium & Exposition District Rev., “A”, 5%, 7/01/23 | 1,325,000 | 1,516,781 | ||||||
Louisiana Stadium & Exposition District Rev., “A”, 5%, 7/01/24 | 1,270,000 | 1,426,756 | ||||||
Louisiana Stadium & Exposition District Rev., “A”, 5%, 7/01/25 | 1,000,000 | 1,114,200 | ||||||
Louisiana Stadium & Exposition District Rev., “A”, 5%, 7/01/26 | 2,000,000 | 2,210,140 | ||||||
New Orleans, LA, Aviation Board Gulf Opportunity Zone CFC Rev. (Consolidated Rental Car), “A”, 6.25%, 1/01/30 | 1,810,000 | 2,051,110 | ||||||
Sabine River, LA, Water Facilities Authority Rev. (International Paper Co.), 6.2%, 2/01/25 | 1,250,000 | 1,255,163 | ||||||
State of Louisiana, “C”, 5%, 7/15/26 | 4,380,000 | 5,042,344 | ||||||
|
| |||||||
$ | 45,604,824 | |||||||
Maryland - 0.8% | ||||||||
Baltimore, MD, Special Obligation, (East Baltimore Research Park Project), “A”, 7%, 9/01/38 | $ | 1,285,000 | $ | 1,359,504 | ||||
Maryland Economic Development Corp. Rev. (Port America Chesapeake Terminal Project), “B”, 5.375%, 6/01/25 | 795,000 | 846,087 | ||||||
Maryland Economic Development Corp., Pollution Control Rev. (Potomac Electric Power Co.), 6.2%, 9/01/22 | 1,455,000 | 1,698,654 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Anne Arundel Health System, Inc.), “A”, 6.75%, 7/01/39 | 1,510,000 | 1,765,235 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Charlestown Community), 6.25%, 1/01/41 | 2,225,000 | 2,361,459 | ||||||
State of Maryland, “C”, 5%, 11/01/19 | 6,890,000 | 8,175,674 | ||||||
|
| |||||||
$ | 16,206,613 |
26
Table of Contents
Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Massachusetts - 6.7% | ||||||||
Commonwealth of Massachusetts Transportation Fund Rev. (Accelerated Bridge Program), “A”, 5%, 6/01/23 | $ | 2,645,000 | $ | 3,207,459 | ||||
Commonwealth of Massachusetts, “A”, 5%, 4/01/17 | 10,000,000 | 11,259,300 | ||||||
Commonwealth of Massachusetts, “A”, AMBAC, 5.5%, 8/01/30 | 5,000,000 | 6,242,650 | ||||||
Massachusetts Bay Transportation Authority Rev., “A”, 5.25%, 7/01/34 | 2,000,000 | 2,205,680 | ||||||
Massachusetts Bay Transportation Authority, “A”, 7%, 3/01/21 | 3,245,000 | 4,025,812 | ||||||
Massachusetts Bay Transportation Authority, “A”, ETM, 7%, 3/01/21 (c) | 3,780,000 | 4,225,171 | ||||||
Massachusetts Bay Transportation Authority, Sales Tax Rev., “A”, 5%, 7/01/24 | 9,445,000 | 11,424,578 | ||||||
Massachusetts Bay Transportation Authority, Sales Tax Rev., Capital Appreciation, “A-2”, 0%, 7/01/28 | 6,930,000 | 3,690,294 | ||||||
Massachusetts College Building Authority Rev., “A”, 5%, 5/01/31 | 2,395,000 | 2,688,100 | ||||||
Massachusetts College Building Authority Rev., “C”, 3%, 5/01/42 | 835,000 | 612,498 | ||||||
Massachusetts Development Finance Agency (Visual & Performing Arts), 6%, 8/01/21 | 1,000,000 | 1,148,690 | ||||||
Massachusetts Development Finance Agency Rev. (Milford Regional Medical Center), “F”, 5.75%, 7/15/43 | 460,000 | 480,470 | ||||||
Massachusetts Development Finance Agency Rev. (North Hill Communities), “A”, 6.25%, 11/15/33 | 275,000 | 274,667 | ||||||
Massachusetts Development Finance Agency Rev. (North Hill Communities), “A”, 6.5%, 11/15/43 | 435,000 | 434,391 | ||||||
Massachusetts Development Finance Agency Rev. (Partners Healthcare), “L”, 5%, 7/01/31 | 2,780,000 | 3,018,719 | ||||||
Massachusetts Development Finance Agency Rev. (Partners Healthcare), “L”, 5%, 7/01/36 | 1,670,000 | 1,774,024 | ||||||
Massachusetts Development Finance Agency Rev. (Simmons College), “H”, SYNCORA, 5.25%, 10/01/33 | 420,000 | 436,174 | ||||||
Massachusetts Development Finance Agency, Resource Recovery Rev. (Covanta Energy Project), “A”, 4.875%, 11/01/27 | 2,380,000 | 2,367,053 | ||||||
Massachusetts Development Finance Agency, Resource Recovery Rev. (Covanta Energy Project), “C”, 5.25%, 11/01/42 | 1,150,000 | 1,120,399 | ||||||
Massachusetts Development Finance Agency, Solid Waste Disposal Rev. (Dominion Energy Brayton), 5.75%, 5/01/19 (c) | 670,000 | 813,829 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “H”, ASSD GTY, 6.35%, 1/01/30 | 2,180,000 | 2,308,119 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “I-A”, 5.5%, 1/01/22 | 225,000 | 247,361 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “J”, 5%, 7/01/21 | 1,255,000 | 1,386,813 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “J”, 4.7%, 7/01/26 | 2,480,000 | 2,542,595 |
27
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Massachusetts - continued | ||||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “J”, 4.9%, 7/01/28 | $ | 2,580,000 | $ | 2,643,029 | ||||
Massachusetts Educational Financing Authority, Education Loan Rev., “K”, 5.25%, 7/01/29 | 4,650,000 | 4,855,112 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Harvard University), 5.5%, 11/15/36 (u) | 25,000,000 | 28,851,750 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Simmons College), 8%, 10/01/15 (c) | 835,000 | 932,136 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Simmons College), 8%, 10/01/29 | 1,195,000 | 1,291,556 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Suffolk University), “A”, 6.25%, 7/01/30 | 4,055,000 | 4,416,463 | ||||||
Massachusetts Port Authority Facilities Rev. (Conrac Project), “A”, 5.125%, 7/01/41 | 465,000 | 489,222 | ||||||
Massachusetts Port Authority Rev., “A”, 5%, 7/01/37 | 470,000 | 489,952 | ||||||
Massachusetts School Building Authority, Sales Tax Rev., “A”, 5%, 8/15/26 | 12,500,000 | 14,427,250 | ||||||
Massachusetts Water Resources Authority, “B”, AGM, 5.25%, 8/01/29 | 4,215,000 | 5,067,357 | ||||||
Massachusetts Water Resources Authority, ETM, 6.5%, 7/15/19 (c) | 5,180,000 | 5,912,659 | ||||||
|
| |||||||
$ | 137,311,332 | |||||||
Michigan - 2.2% | ||||||||
Detroit, MI, 5.25%, 11/01/35 | $ | 5,000,000 | $ | 5,108,450 | ||||
Detroit, MI, Sewage Disposal System Rev., Senior Lien, “A”, 5.25%, 7/01/39 | 5,920,000 | 5,679,826 | ||||||
Detroit, MI, Water & Sewerage Department, Senior Lien Sewage Disposal System Rev., “A”, 5%, 7/01/19 | 1,730,000 | 1,721,212 | ||||||
Detroit, MI, Water & Sewerage Department, Senior Lien Sewage Disposal System Rev., “A”, 5%, 7/01/20 | 1,725,000 | 1,713,926 | ||||||
Detroit, MI, Water & Sewerage Department, Senior Lien Sewage Disposal System Rev., “A”, AGM, 5%, 7/01/16 | 1,560,000 | 1,566,115 | ||||||
Detroit, MI, Water Supply System Rev., Senior Lien, “A”, 5%, 7/01/23 | 780,000 | 784,376 | ||||||
Grand Valley, MI, State University Rev., 5.5%, 12/01/27 | 985,000 | 1,086,839 | ||||||
Grand Valley, MI, State University Rev., 5.625%, 12/01/29 | 480,000 | 520,824 | ||||||
Michigan Finance Authority Rev. (Trinity Health Corp.), 5%, 12/01/35 | 3,195,000 | 3,345,868 | ||||||
Michigan Hospital Finance Authority Rev. (Henry Ford Health System), 5.75%, 11/15/39 | 7,165,000 | 7,474,743 | ||||||
Michigan Housing Development Authority, GNMA, 5.2%, 8/20/38 | 1,200,000 | 1,209,264 | ||||||
Michigan Strategic Fund Ltd. Obligation Rev. (Detroit Edison Co.), 5.625%, 7/01/20 | 985,000 | 1,167,530 |
28
Table of Contents
Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Michigan - continued | ||||||||
Michigan Strategic Fund Ltd. Obligation Rev. (Detroit Edison Co.), 5.5%, 8/01/29 (b) | $ | 1,970,000 | $ | 2,161,464 | ||||
Michigan Strategic Fund Ltd. Obligation Rev. (Dow Chemical Co.), 6.25%, 6/01/14 | 2,870,000 | 2,893,735 | ||||||
Regents of the University of Michigan General Rev., “C”, 5%, 4/01/17 | 5,220,000 | 5,879,025 | ||||||
Royal Oak, MI, Hospital Finance Authority Rev. (William Beaumont Hospital), 8.25%, 9/01/39 | 2,325,000 | 2,827,874 | ||||||
|
| |||||||
$ | 45,141,071 | |||||||
Minnesota - 0.4% | ||||||||
St. Louis Park, MN, Health Care Facilities Rev. (Nicollet Health Services), 5.75%, 7/01/39 | $ | 6,445,000 | $ | 6,904,142 | ||||
University of Minnesota, “A”, 5%, 12/01/25 | 710,000 | 814,895 | ||||||
|
| |||||||
$ | 7,719,037 | |||||||
Mississippi - 0.7% | ||||||||
Alcorn State University, MS, Educational Building Corp. Rev. (Student Housing Project), “A”, 5.125%, 9/01/34 | $ | 2,500,000 | $ | 2,675,700 | ||||
Alcorn State University, MS, Educational Building Corp. Rev. (Student Housing Project), “A”, 5.25%, 9/01/39 | 1,625,000 | 1,732,656 | ||||||
Lowndes County, MS, Solid Waste Disposal & Pollution Control Rev. (Weyerhaeuser Co.), 6.8%, 4/01/22 | 110,000 | 127,310 | ||||||
Mississippi Development Bank Special Obligation (City of Jackson Water and Sewer System Rev. Bond Project), AGM, 6.875%, 12/01/40 | 495,000 | 622,116 | ||||||
Mississippi Development Bank Special Obligation (Harrison County Coliseum), “A”, 5.25%, 1/01/34 | 2,455,000 | 2,903,676 | ||||||
Mississippi Development Bank Special Obligation (Marshall County Industrial Development Authority Mississippi Highway Construction Project), 5%, 1/01/28 | 1,450,000 | 1,611,936 | ||||||
Mississippi State University, Educational Building Corp. Rev., 5.25%, 8/01/38 | 1,250,000 | 1,368,538 | ||||||
University of Southern Mississippi Educational Building Corp. Rev. (Campus Facilities Project), 5.25%, 9/01/32 | 1,665,000 | 1,810,871 | ||||||
University of Southern Mississippi Educational Building Corp. Rev. (Campus Facilities Project), 5.375%, 9/01/36 | 610,000 | 659,977 | ||||||
|
| |||||||
$ | 13,512,780 | |||||||
Missouri - 0.1% | ||||||||
Grundy County, MO, Industrial Development Authority, Health Facilities Rev. (Wright Memorial Hospital), 6.75%, 9/01/34 | $ | 1,410,000 | $ | 1,507,050 | ||||
Missouri Health & Educational Facilities Authority Rev. (A.T. Still University Health Services), 5%, 10/01/39 | 730,000 | 754,528 | ||||||
|
| |||||||
$ | 2,261,578 |
29
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Nebraska - 0.9% | ||||||||
Douglas County, NE, Educational Facilities Rev. (Creighton University), “A”, 5.875%, 7/01/40 | $ | 6,355,000 | $ | 6,901,212 | ||||
Nebraska Investment Finance Authority Rev., Single Family Housing, “E”, 3%, 3/01/43 | 1,720,000 | 1,783,107 | ||||||
Nebraska Public Power District Rev., “C”, 5%, 1/01/18 | 8,335,000 | 8,956,791 | ||||||
|
| |||||||
$ | 17,641,110 | |||||||
New Hampshire - 0.3% | ||||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6%, 10/01/27 | $ | 4,610,000 | $ | 4,952,569 | ||||
New Hampshire Business Finance Authority Rev. (Huggins Hospital), 6.875%, 10/01/39 | 485,000 | 512,262 | ||||||
|
| |||||||
$ | 5,464,831 | |||||||
New Jersey - 3.9% | ||||||||
New Jersey Economic Development Authority Rev. (The Goethals Bridge Replacement Project), 5.5%, 1/01/27 | $ | 470,000 | $ | 515,266 | ||||
New Jersey Economic Development Authority Rev. (The Goethals Bridge Replacement Project), 5%, 1/01/28 | 470,000 | 490,605 | ||||||
New Jersey Economic Development Authority Rev. (The Goethals Bridge Replacement Project), AGM, 5%, 1/01/31 | 1,415,000 | 1,452,243 | ||||||
New Jersey Economic Development Authority, Special Facilities Rev. (Continental Airlines, Inc.), 4.875%, 9/15/19 | 1,595,000 | 1,595,128 | ||||||
New Jersey Economic Development Authority, Special Facilities Rev. (Continental Airlines, Inc.), 5.25%, 9/15/29 (b) | 3,405,000 | 3,394,206 | ||||||
New Jersey Economic Development Authority, Special Facilities Rev. (Continental Airlines, Inc.), “A”, 5.625%, 11/15/30 | 400,000 | 403,620 | ||||||
New Jersey Economic Development Authority, Special Facilities Rev. (Continental Airlines, Inc.), “B”, 5.625%, 11/15/30 | 370,000 | 370,729 | ||||||
New Jersey Economic Development Authority, Water Facilities Rev. (New Jersey American Water Co.), “A”, 5.7%, 10/01/39 | 5,000,000 | 5,374,750 | ||||||
New Jersey Educational Facilities Authority Rev. (University of Medicine & Dentistry), “B”, 7.5%, 6/01/19 (c) | 4,195,000 | 5,462,268 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.5%, 6/01/23 | 28,440,000 | 27,342,500 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.75%, 6/01/34 | 8,960,000 | 6,767,040 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 5%, 6/01/41 | 15,040,000 | 11,316,698 | ||||||
New Jersey Tobacco Settlement Financing Corp., Capital Appreciation, “1-B”, 0%, 6/01/41 | 27,535,000 | 6,637,587 | ||||||
New Jersey Tobacco Settlement Financing Corp., Capital Appreciation, “1-C”, 0%, 6/01/41 | 365,000 | 86,615 |
30
Table of Contents
Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
New Jersey - continued | ||||||||
New Jersey Transportation Trust Fund Authority Rev., “D”, 5.25%, 12/15/23 | $ | 7,500,000 | $ | 8,834,700 | ||||
|
| |||||||
$ | 80,043,955 | |||||||
New Mexico - 0.6% | ||||||||
Farmington, NM, Pollution Control Rev. (Public Service New Mexico), “D”, 5.9%, 6/01/40 | $ | 9,975,000 | $ | 10,602,727 | ||||
New Mexico Mortgage Finance Authority Rev., GNMA, 5.95%, 7/01/37 | 385,000 | 392,253 | ||||||
New Mexico Mortgage Finance Authority Rev., “I”, GNMA, 5.75%, 7/01/38 | 600,000 | 629,478 | ||||||
|
| |||||||
$ | 11,624,458 | |||||||
New York - 4.5% | ||||||||
Brooklyn, NY, Arena Local Development Corp. (Barclays Center Project), 6%, 7/15/30 | $ | 2,015,000 | $ | 2,158,770 | ||||
Hempstead, NY, Local Development Corp. Rev. (Hofstra University Project), 5%, 7/01/25 | 1,450,000 | 1,602,685 | ||||||
Hempstead, NY, Local Development Corp. Rev. (Hofstra University Project), 5%, 7/01/26 | 1,080,000 | 1,185,710 | ||||||
Hempstead, NY, Local Development Corp. Rev. (Hofstra University Project), 5%, 7/01/28 | 275,000 | 298,067 | ||||||
Hudson Yards, NY, Infrastructure Corp. Rev., “A”, 5.75%, 2/15/47 | 3,950,000 | 4,341,366 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (Bronx-Lebanon Hospital Center), LOC, 6.5%, 8/15/30 | 1,475,000 | 1,664,316 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (Bronx-Lebanon Hospital Center), LOC, 6.25%, 2/15/35 | 1,395,000 | 1,532,477 | ||||||
New York Dormitory Authority, State Personal Income Tax Rev., “A”, 5%, 12/15/25 | 5,000,000 | 5,739,900 | ||||||
New York Environmental Facilities Corp., Municipal Water Finance Authority Project, 5%, 6/15/25 | 2,300,000 | 2,652,084 | ||||||
New York Environmental Facilities, “C”, 5%, 5/15/41 | 2,745,000 | 2,945,056 | ||||||
New York Environmental Facilities, ETM, 5%, 6/15/16 (c) | 570,000 | 571,778 | ||||||
New York Housing Finance Agency Affordable Housing Rev., “D”, 0.8%, 11/01/16 | 1,470,000 | 1,475,072 | ||||||
New York Housing Finance Agency Affordable Housing Rev., “D”, 0.8%, 11/01/16 | 1,460,000 | 1,465,490 | ||||||
New York Liberty Development Corp., Liberty Rev. (World Trade Center Project), 5%, 11/15/31 | 2,300,000 | 2,468,360 | ||||||
New York Thruway Authority General Rev., Junior Indebtedness Obligation, “A”, 5%, 5/01/19 | 3,325,000 | 3,840,807 | ||||||
New York Tobacco Settlement Financing Corp., Asset-Backed Rev., “B”, 5%, 6/01/21 | 5,740,000 | 6,198,741 |
31
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
New York - continued | ||||||||
New York Utility Debt Securitization Authority Rev., “TE”, 5%, 12/15/18 | $ | 280,000 | $ | 310,551 | ||||
New York, NY, “B”, 5%, 8/01/20 | 10,730,000 | 12,536,825 | ||||||
New York, NY, “J-4”, FRN, 0.61%, 8/01/25 | 1,715,000 | 1,715,189 | ||||||
New York, NY, “J-9”, FRN, 0.46%, 8/01/27 | 5,645,000 | 5,644,436 | ||||||
New York, NY, City Industrial Development Agency Special Facility Rev. (American Airlines, Inc. - JFK International Airport Project), 7.625%, 8/01/25 | 3,375,000 | 3,687,289 | ||||||
New York, NY, City Industrial Development Agency Special Facility Rev. (American Airlines, Inc. - JFK International Airport Project), 7.75%, 8/01/31 | 1,190,000 | 1,301,551 | ||||||
New York, NY, City Industrial Development Agency Special Facility Rev. (American Airlines, Inc. - JFK International Airport Project), “B”, 8.5%, 8/01/28 | 1,875,000 | 1,981,350 | ||||||
New York, NY, Housing Development Corp., Multi-Family Housing Rev., “E-1-A”, 0.75%, 11/01/16 | 2,795,000 | 2,795,000 | ||||||
New York, NY, Housing Development Corp., Multi-Family Housing Rev., “E-1-B”, 1.2%, 11/01/17 | 2,915,000 | 2,920,976 | ||||||
New York, NY, Municipal Water Finance Authority, Water & Sewer Systems Rev., “CC”, 5%, 6/15/18 | 3,945,000 | 4,386,643 | ||||||
New York, NY, Municipal Water Finance Authority, Water & Sewer Systems Rev., “CC”, 5%, 6/15/19 | 2,795,000 | 3,184,735 | ||||||
Niagara County, NY, Industrial Development Agency, Solid Waste Disposal Rev. (Covanta Energy Project), “A”, 5.25%, 11/01/42 | 1,170,000 | 1,139,884 | ||||||
Port Authority of NY & NJ, (170th Series), 5%, 12/01/16 | 1,815,000 | 2,015,303 | ||||||
Port Authority of NY & NJ, (170th Series), 5%, 12/01/17 | 1,795,000 | 2,034,435 | ||||||
Port Authority of NY & NJ, (170th Series), 5%, 12/01/18 | 1,025,000 | 1,178,422 | ||||||
Port Authority of NY & NJ, (170th Series), 5%, 12/01/19 | 1,765,000 | 2,042,935 | ||||||
Port Authority of NY & NJ, Special Obligation Rev. (JFK International Air Terminal LLC), 6%, 12/01/36 | 2,315,000 | 2,544,903 | ||||||
Seneca Nation of Indians, NY, Capital Improvements Authority, Special Obligation, 5%, 12/01/23 (n) | 670,000 | 683,487 | ||||||
|
| |||||||
$ | 92,244,593 | |||||||
North Carolina - 0.5% | ||||||||
North Carolina Eastern Municipal Power Agency, “A”, NATL, 6.5%, 1/01/18 | $ | 9,250,000 | $ | 10,968,558 | ||||
Ohio - 2.2% | ||||||||
American Municipal Power, Inc. Rev. (AMP Fremont Energy Center Project), “B”, 5%, 2/15/24 | $ | 1,500,000 | $ | 1,667,670 | ||||
Buckeye, OH, Tobacco Settlement Financing Authority, “A-3”, 6.25%, 6/01/37 | 8,900,000 | 7,514,092 | ||||||
Cleveland-Cuyahoga County, OH, Port Authority Rev., 7%, 5/15/40 | 1,105,000 | 1,189,212 |
32
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Ohio - continued | ||||||||
Montgomery County, OH, Health Care & Multifamily Housing Rev. (St. Leonard), 6.375%, 4/01/30 | $ | 1,915,000 | $ | 2,052,995 | ||||
Montgomery County, OH, Health Care & Multifamily Housing Rev. (St. Leonard), 6.625%, 4/01/40 | 2,770,000 | 2,972,542 | ||||||
Muskingum County, OH, Hospital Facilities Rev. (Genesis Health System Obligated Group), 5%, 2/15/33 | 645,000 | 544,967 | ||||||
Muskingum County, OH, Hospital Facilities Rev. (Genesis Health System Obligated Group), 5%, 2/15/44 | 2,395,000 | 1,895,092 | ||||||
Muskingum County, OH, Hospital Facilities Rev. (Genesis Health System Obligated Group), 5%, 2/15/48 | 645,000 | 502,371 | ||||||
Ohio Higher Educational Facility Commission (University Hospital Health System), “A”, 6.75%, 1/15/15 (c) | 6,000,000 | 6,308,400 | ||||||
Ohio Solid Waste Rev. (Republic Services, Inc. Project), FRN, 0.32%, 11/01/35 | 1,345,000 | 1,345,027 | ||||||
Scioto County, OH, Hospital Facilities Rev. (Southern Ohio Medical Center), 5.625%, 2/15/31 | 1,095,000 | 1,161,729 | ||||||
Scioto County, OH, Hospital Facilities Rev. (Southern Ohio Medical Center), 5.75%, 2/15/38 | 4,195,000 | 4,421,530 | ||||||
Summit County, OH, Port Authority Building Rev. (Flats East Development Recovery Zone Facility Bonds), 6.875%, 5/15/40 | 415,000 | 446,544 | ||||||
Summit County, OH, Port Authority Building Rev. (Seville Project), “A”, 5.1%, 5/15/25 | 150,000 | 146,793 | ||||||
The Ohio State University, Special Purpose Rev., “A”, 5%, 6/01/38 (u) | 3,355,000 | 3,628,768 | ||||||
The Ohio State University, Special Purpose Rev., “A”, 5%, 6/01/43 (u) | 8,150,000 | 8,750,166 | ||||||
|
| |||||||
$ | 44,547,898 | |||||||
Oklahoma - 0.7% | ||||||||
Oklahoma County, OK, Home Finance Authority, Single Family Mortgage Rev., “A”, GNMA, 5.4%, 10/01/38 | $ | 600,000 | $ | 604,974 | ||||
Oklahoma Industries Authority Rev. (Oklahoma Medical Research Foundation Project), 5.5%, 7/01/29 | 4,400,000 | 4,767,532 | ||||||
Tulsa, OK, Industrial Authority Rev. (University of Tulsa), 6%, 10/01/27 | 4,670,000 | 5,192,246 | ||||||
Tulsa, OK, Municipal Airport Trust Rev. (American Airlines, Inc.), “B”, 5.5%, 6/01/35 | 1,910,000 | 1,877,033 | ||||||
Tulsa, OK, Municipal Airport Trust Rev. (American Airlines, Inc.), “B”, 5.5%, 12/01/35 | $ | 1,440,000 | $ | 1,406,059 | ||||
|
| |||||||
$ | 13,847,844 |
33
Table of Contents
Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Oregon - 0.1% | ||||||||
Forest Grove, OR, Student Housing Rev. (Oak Tree Foundation, Inc.), 5.5%, 3/01/37 | $ | 2,470,000 | $ | 2,397,901 | ||||
Oregon Health & Community Services (Single Family Mortgage), “B”, 6.25%, 7/01/31 | 270,000 | 281,324 | ||||||
|
| |||||||
$ | 2,679,225 | |||||||
Pennsylvania - 4.1% | ||||||||
Allegheny County, PA, Higher Education Building Authority Rev. (Robert Morris University), “A”, 5.9%, 10/15/28 | $ | 1,195,000 | $ | 1,239,585 | ||||
Commonwealth of Pennsylvania, State Public School Building Authority Lease Rev. (School District of Philadelphia Project), 5%, 4/01/28 | 1,870,000 | 1,983,733 | ||||||
Cumberland County, PA, Municipal Authority Rev. (Asbury Atlantic, Inc.), 6%, 1/01/30 | 715,000 | 749,163 | ||||||
Cumberland County, PA, Municipal Authority Rev. (Asbury Atlantic, Inc.), 6%, 1/01/40 | 505,000 | 526,064 | ||||||
Cumberland County, PA, Municipal Authority Rev. (Diakon Lutheran Social Ministries), 6.125%, 1/01/29 | 830,000 | 892,848 | ||||||
Cumberland County, PA, Municipal Authority Rev. (Diakon Lutheran Social Ministries), 6.375%, 1/01/39 | 5,045,000 | 5,400,168 | ||||||
Delaware County, PA, Authority College Rev. (Neumann University), 6%, 10/01/25 | 490,000 | 517,362 | ||||||
Delaware County, PA, Industrial Development Authority, Resource Recovery Facilities Rev. (American Ref-Fuel Co.), “A”, 6.2%, 7/01/19 | 1,880,000 | 1,881,072 | ||||||
Delaware Valley, PA, Regional Finance Authority, 5.75%, 7/01/17 | 3,255,000 | 3,692,505 | ||||||
Delaware Valley, PA, Regional Finance Authority, AMBAC, 5.5%, 8/01/18 | 7,840,000 | 9,042,342 | ||||||
Delaware Valley, PA, Regional Finance Authority, “B”, FRN, AMBAC, 0.041%, 8/01/18 | 600,000 | 600,000 | ||||||
Delaware Valley, PA, Regional Finance Authority, “C”, FRN, 0.908%, 6/01/37 | 7,000,000 | 4,768,050 | ||||||
Delaware Valley, PA, Regional Finance Authority, RITES, FRN, AMBAC, 10.29%, 8/01/18 (p) | 900,000 | 1,176,048 | ||||||
Lebanon County, PA, Health Facilities Authority Rev. (Good Samaritan Hospital), 5.9%, 11/15/28 | 1,700,000 | 1,687,318 | ||||||
Lehigh County, PA, Water and Sewer Authority Rev. (Allentown Concession), “A”, 5%, 12/01/43 | 9,610,000 | 9,982,580 | ||||||
Lehigh County, PA, Water and Sewer Authority Rev. (Allentown Concession), Capital Appreciation, “B”, 0%, 12/01/36 | 12,095,000 | 3,607,818 | ||||||
Lehigh County, PA, Water and Sewer Authority Rev. (Allentown Concession), Capital Appreciation, “B”, 0%, 12/01/37 | 9,795,000 | 2,731,923 | ||||||
Luzerne County, PA, AGM, 6.75%, 11/01/23 | 1,200,000 | 1,341,852 |
34
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Pennsylvania - continued | ||||||||
Pennsylvania Convention Center Authority Rev., ETM, FGIC, 6.7%, 9/01/16 (c) | $ | 11,430,000 | $ | 12,381,776 | ||||
Pennsylvania Economic Development Financing Authority Unemployment Compensation Rev., “B”, 5%, 1/01/23 | 3,230,000 | 3,463,917 | ||||||
Pennsylvania Economic Development Financing Authority Unemployment Compensation Rev., “B”, 5%, 7/01/23 | 1,940,000 | 2,050,405 | ||||||
Pennsylvania Economic Development Financing Authority, Sewer Sludge Disposal Rev. (Philadelphia Biosolids Facility), 6.25%, 1/01/32 | 3,110,000 | 3,146,947 | ||||||
Pennsylvania Higher Educational Facilities Authority Rev. (Edinboro University Foundation), 5.8%, 7/01/30 | 510,000 | 517,676 | ||||||
Pennsylvania Higher Educational Facilities Authority Rev. (Edinboro University Foundation), 6%, 7/01/43 | 895,000 | 899,054 | ||||||
Pennsylvania Turnpike Commission Oil Franchise Tax Rev., “A”, ETM, AMBAC, 5.25%, 12/01/18 (c) | 1,150,000 | 1,233,858 | ||||||
Philadelphia Authority for Industrial Development Rev. (Philadelphia Performing Arts Charter School Project), 6.5%, 6/15/33 | 2,425,000 | 2,461,690 | ||||||
Philadelphia Authority for Industrial Development Rev. (Tacony Academy Charter School Project), “A-1”, 6.75%, 6/15/33 | 150,000 | 150,081 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (MaST Charter School), 6%, 8/01/35 | 415,000 | 434,264 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (Philadelphia Performing Arts Charter School Project), 6.75%, 6/15/43 | 1,175,000 | 1,190,839 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (Tacony Academy Charter School Project), “A-1”, 7%, 6/15/43 | 355,000 | 354,950 | ||||||
Philadelphia, PA, Municipal Authority Rev., 6.5%, 4/01/34 | 1,020,000 | 1,135,433 | ||||||
Philadelphia, PA, Redevelopment Authority Rev., BAM, 5%, 4/15/24 | 1,900,000 | 2,109,285 | ||||||
Reading, PA, School District, “A”, 5%, 4/01/20 | 1,000,000 | 1,085,540 | ||||||
Washington County, PA, Redevelopment Authority (Victory Centre Project), “A”, 5.45%, 7/01/35 | 270,000 | 270,292 | ||||||
|
| |||||||
$ | 84,706,438 | |||||||
Puerto Rico - 0.5% | ||||||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 5.125%, 7/01/37 | $ | 340,000 | $ | 230,574 | ||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 5.75%, 7/01/37 | 3,620,000 | 2,628,844 | ||||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 6%, 7/01/44 | 305,000 | 225,304 | ||||||
Commonwealth of Puerto Rico, “A”, ETM, FGIC, 5.5%, 7/01/15 (c) | 5,585,000 | 5,951,264 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical, & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.375%, 4/01/42 | 545,000 | 431,368 |
35
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Puerto Rico - continued | ||||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “A”, 5.5%, 8/01/19 (c) | $ | 45,000 | $ | 54,362 | ||||
|
| |||||||
$ | 9,521,716 | |||||||
Rhode Island - 1.3% | ||||||||
Providence, RI, “A”, 5%, 1/15/25 | $ | 1,345,000 | $ | 1,464,503 | ||||
Rhode Island Health & Educational Building Corp. Rev., Hospital Financing (Lifespan Obligated Group), “A”, ASSD GTY, 7%, 5/15/39 | 7,645,000 | 8,465,232 | ||||||
Rhode Island Student Loan Authority, Student Loan Rev., “A”, 3%, 12/01/21 | 4,890,000 | 4,628,825 | ||||||
Rhode Island Student Loan Authority, Student Loan Rev., “A”, 3.25%, 12/01/22 | 1,500,000 | 1,415,865 | ||||||
Rhode Island Student Loan Authority, Student Loan Rev., “A”, 3.375%, 12/01/23 | 2,500,000 | 2,326,450 | ||||||
Rhode Island Student Loan Authority, Student Loan Rev., “A”, 3.5%, 12/01/24 | 4,550,000 | 4,225,358 | ||||||
Rhode Island Student Loan Authority, Student Loan Rev., “A”, 3.625%, 12/01/25 | 4,115,000 | 3,796,746 | ||||||
|
| |||||||
$ | 26,322,979 | |||||||
South Carolina - 1.5% | ||||||||
Chesterfield County, SC, School District, 5%, 3/01/25 | $ | 2,250,000 | $ | 2,578,410 | ||||
Florence County, SC, Hospital Rev. (McLeod Regional Medical Center), “A”, AGM, 5.25%, 11/01/34 | 5,000,000 | 5,065,850 | ||||||
Lancaster County, SC, Assessment Rev. (Sun City Carolina Lakes), 5.45%, 12/01/37 | 40,000 | 36,762 | ||||||
Piedmont, SC, Municipal Power Agency, FGIC, 6.25%, 1/01/21 | 4,150,000 | 5,046,940 | ||||||
Richland County, SC, Environmental Improvement Rev. (International Paper), “A”, 3.875%, 4/01/23 | 5,750,000 | 5,756,440 | ||||||
South Carolina Public Service Authority Rev., “A”, 5.125%, 12/01/43 | 2,745,000 | 2,906,735 | ||||||
South Carolina Public Service Authority Rev., “B”, 5.125%, 12/01/43 | 6,550,000 | 6,935,926 | ||||||
South Carolina Public Service Authority Rev., “C”, 5%, 12/01/36 | 2,920,000 | 3,073,475 | ||||||
|
| |||||||
$ | 31,400,538 | |||||||
South Dakota - 0.2% | ||||||||
South Dakota Educational Enhancement Funding Corp., Tobacco Settlement Rev., “B”, 5%, 6/01/24 | $ | 1,000,000 | $ | 1,098,550 | ||||
South Dakota Educational Enhancement Funding Corp., Tobacco Settlement Rev., “B”, 5%, 6/01/25 | 1,000,000 | 1,083,200 | ||||||
South Dakota Educational Enhancement Funding Corp., Tobacco Settlement Rev., “B”, 5%, 6/01/26 | 1,400,000 | 1,503,096 |
36
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
South Dakota - continued | ||||||||
South Dakota Health & Educational Facilities Authority Rev. (Avera Health), “A”, 5%, 7/01/42 | $ | 1,205,000 | $ | 1,233,137 | ||||
|
| |||||||
$ | 4,917,983 | |||||||
Tennessee - 2.2% | ||||||||
Chattanooga, TN, Health Educational & Housing Facility Board Rev. (Catholic Health Initiatives), “A”, 5.25%, 1/01/45 | $ | 10,310,000 | $ | 10,847,976 | ||||
Claiborne County, TN, Industrial Development Board Rev. (Lincoln Memorial University Project), 6.125%, 10/01/40 | 3,000,000 | 3,094,620 | ||||||
Hardeman County, TN, Correctional Facilities Corp. (Corrections Corp. of America), 7.375%, 8/01/17 | 355,000 | 355,099 | ||||||
Lewisberg, TN, Industrial Development Board Solid Waste Disposal Rev., FRN, 0.5%, 7/02/35 (b) | 2,630,000 | 2,630,079 | ||||||
Memphis, TN, Refunding General Improvement, “B”, 5%, 4/01/31 | 2,585,000 | 2,911,951 | ||||||
Metropolitan Government of Nashville & Davidson County, TN, Electric Rev., “A”, 5%, 5/15/29 | 4,765,000 | 5,313,261 | ||||||
Metropolitan Government of Nashville & Davidson County, TN, Electric Rev., “A”, 5%, 5/15/30 | 2,500,000 | 2,770,875 | ||||||
Metropolitan Government of Nashville & Davidson County, TN, Health & Educational Facilities Board Rev. (Meharry Medical College), AMBAC, 6%, 12/01/16 | 2,775,000 | 2,947,661 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/17 | 1,575,000 | 1,735,272 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/19 | 1,500,000 | 1,685,700 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/22 | 1,665,000 | 1,860,238 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/23 | 2,385,000 | 2,682,505 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/24 | 2,215,000 | 2,452,780 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/26 | 2,805,000 | 3,124,910 | ||||||
Tennessee School Bond Authority, “B”, 5.125%, 5/01/33 | 1,500,000 | 1,635,285 | ||||||
|
| |||||||
$ | 46,048,212 | |||||||
Texas - 8.0% | ||||||||
Austin, TX, Convention Center (Convention Enterprises, Inc.), “A”, SYNCORA, 5.25%, 1/01/17 | $ | 995,000 | $ | 1,056,750 | ||||
Austin, TX, Convention Center (Convention Enterprises, Inc.), “A”, SYNCORA, 5.25%, 1/01/19 | 1,375,000 | 1,454,736 | ||||||
Austin, TX, Convention Center (Convention Enterprises, Inc.), “A”, SYNCORA, 5.25%, 1/01/20 | 1,120,000 | 1,178,901 | ||||||
Austin, TX, Convention Center (Convention Enterprises, Inc.), “A”, SYNCORA, 5.25%, 1/01/24 | 2,230,000 | 2,321,653 | ||||||
Austin, TX, Water & Wastewater System Rev., 5%, 11/15/27 | 3,000,000 | 3,425,610 | ||||||
Bell County, TX, Health Facility Development Corp. (Advanced Living Technologies, Inc.), 8%, 12/15/36 (a)(d) | 1,595,000 | 15,950 | ||||||
Brazos River, TX, Harbor Navigation District (Dow Chemical Co.), “A”, 5.95%, 5/15/33 | 7,310,000 | 7,891,584 |
37
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Texas- continued | ||||||||
Brazos River, TX, Pollution Control Authority Rev. (TXU Energy Co. LLC Project), 5%, 3/01/41 | $ | 2,460,000 | $ | 61,500 | ||||
Clifton, TX, Higher Education Finance Corp. Rev. (Uplift Education), “A”, 6.125%, 12/01/40 | 2,355,000 | 2,528,140 | ||||||
Clifton, TX, Higher Education Finance Corp. Rev. (Uplift Education), “A”, 6.25%, 12/01/45 | 1,425,000 | 1,535,609 | ||||||
Conroe, TX, Independent School District, Unlimited Tax School Building and Refunding, PSF, 5%, 2/15/39 | 1,845,000 | 2,043,282 | ||||||
Dallas, TX, Independent School District, 5%, 8/15/23 | 6,000,000 | 7,231,500 | ||||||
Dallas, TX, Waterworks & Sewer System Rev., 5%, 10/01/39 | 10,000,000 | 10,822,400 | ||||||
El Paso, TX, Water & Sewer Rev., 5%, 3/01/28 | 455,000 | 509,131 | ||||||
Fort Worth, TX, Independent School District, Unlimited Tax School Building, PSF, 5%, 2/15/39 | 3,685,000 | 4,090,682 | ||||||
Gulf Coast Waste Disposal Authority (Waste Management, Inc.), 5.2%, 5/01/28 | 300,000 | 312,855 | ||||||
Gulf Coast, TX, Industrial Development Authority Rev. (Microgy Holdings Project), 7%, 12/01/36 (a)(d) | 116,013 | 1,160 | ||||||
Harris County, Houston, TX, Sports Authority, Special Rev., “A”, NATL, 5%, 11/15/25 | 2,460,000 | 2,460,689 | ||||||
Harris County, TX, Cultural Education Facilities Finance Corp. Medical Facilities Rev. (Baylor College of Medicine), “D”, 5.625%, 11/15/32 | 8,235,000 | 8,971,044 | ||||||
Harris County, TX, Cultural Education Facilities Financial Corp., Thermal Utilities Rev. (Teco Project), “A”, 5.25%, 11/15/35 | 1,560,000 | 1,654,739 | ||||||
Harris County, TX, Health Facilities Development Corp., Hospital Rev. (Memorial Hermann Healthcare Systems), “B”, 7%, 12/01/18 (c) | 1,795,000 | 2,263,675 | ||||||
Harris County, TX, Health Facilities Development Corp., Hospital Rev. (Memorial Hermann Healthcare Systems), “B”, 7.25%, 12/01/18 (c) | 2,050,000 | 2,608,400 | ||||||
Harris County, TX, Health Facilities Development Corp., Hospital Rev. (Texas Children’s Hospital Project), “A”, ETM, 5.375%, 10/01/15 (c) | 4,300,000 | 4,315,910 | ||||||
Houston, TX, Airport System Rev., “B”, 5%, 7/01/26 | 1,855,000 | 2,049,089 | ||||||
Houston, TX, Airport System Rev., Subordinate Lien, “A”, 5%, 7/01/31 | 2,310,000 | 2,398,334 | ||||||
Houston, TX, Airport Systems Rev., Special Facilities (Continental Airlines, Inc. Terminal E Project), 6.75%, 7/01/29 | 570,000 | 571,288 | ||||||
Houston, TX, Industrial Development Corp. (United Parcel Service, Inc.), 6%, 3/01/23 | 170,000 | 173,626 | ||||||
La Vernia, TX, Higher Education Finance Corp. Rev. (KIPP, Inc.), “A”, 6.25%, 8/15/39 | 1,470,000 | 1,583,366 |
38
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Texas - continued | ||||||||
La Vernia, TX, Higher Education Finance Corp. Rev. (Lifeschool of Dallas), “A”, 7.5%, 8/15/41 | $ | 4,230,000 | $ | 4,764,587 | ||||
Lufkin, TX, Health Facilities Development Corp. Rev. (Memorial Health System), 5.5%, 2/15/37 | 310,000 | 316,560 | ||||||
Matagorda County, TX, Pollution Control Rev. (Central Power & Light Co.), “A”, 6.3%, 11/01/29 | 2,045,000 | 2,281,075 | ||||||
Mission, TX, Economic Development Corp., Solid Waste Disposal Rev. (Republic Services, Inc. Project), FRN, 0.55%, 1/01/26 (b) | 4,210,000 | 4,210,379 | ||||||
Nortex, TX, Housing Finance Corp., Single Family Mortgage Rev., “A”, GNMA, 5.5%, 7/01/38 | 1,180,000 | 1,205,016 | ||||||
North Texas Tollway Authority Rev. (Special Projects System), “D”, 5%, 9/01/29 | 15,000,000 | 16,643,100 | ||||||
North Texas Tollway Authority Rev., “C”, 1.95%, 1/01/38 (b) | 8,000,000 | 7,885,360 | ||||||
Permian Basin Housing Finance Corp., TX, Single Family Mortgage Backed Securities (Mortgage Backed Project) “A”, GNMA, 5.65%, 1/01/38 | 1,060,000 | 1,093,729 | ||||||
Red River Authority, TX, Pollution Control Rev. (Celanese Project) “B”, 6.7%, 11/01/30 | 1,200,000 | 1,202,484 | ||||||
Red River, TX, Health Facilities Development Corp., Retirement Facilities Rev., (MRC the Crossings Project) “B-2”, 5%, 11/15/19 | 80,000 | 79,901 | ||||||
San Juan, TX, Higher Education Finance Authority Education Rev. (Idea Public Schools), “A”, 6.7%, 8/15/40 | 2,795,000 | 3,143,453 | ||||||
San Marcos, TX, Independent School District, PSF, 5.625%, 8/01/14 (c) | 2,000,000 | 2,036,200 | ||||||
San Marcos, TX, Independent School District, PSF, 5.625%, 8/01/14 (c) | 2,000,000 | 2,036,200 | ||||||
Schertz-Cibolo-Universal City, TX, Independent School District, PSF, 5%, 2/01/36 | 10,000,000 | 10,515,200 | ||||||
Tarrant County, TX, Cultural Education Facilities Finance Corp. Retirement Facility (Air Force Village Foundation, Inc.), 6.125%, 11/15/29 | 395,000 | 412,767 | ||||||
Tarrant County, TX, Cultural Education Facilities Finance Corp. Retirement Facility (Air Force Village Foundation, Inc.), 6.375%, 11/15/44 | 3,100,000 | 3,194,643 | ||||||
Tarrant County, TX, Cultural Education Facilities Finance Corp. Retirement Facility (Stayton at Museum Way), 8.25%, 11/15/44 | 4,500,000 | 3,803,175 | ||||||
Texas Affordable Housing Corp. (Single Family Mortgage), “B”, GNMA, 5.25%, 9/01/39 | 305,000 | 314,010 | ||||||
Texas Private Activity Surface Transportation Corp. Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 7%, 12/31/38 | 1,495,000 | 1,695,569 | ||||||
Texas Private Activity Surface Transportation Corp. Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 6.75%, 6/30/43 | 1,195,000 | 1,323,893 |
39
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Texas - continued | ||||||||
Texas Tech University Rev., Refunding & Improvement, “A”, 5%, 8/15/30 | $ | 2,175,000 | $ | 2,405,985 | ||||
Texas Tech University Rev., Refunding & Improvement, “A”, 5%, 8/15/31 | 960,000 | 1,056,029 | ||||||
Texas Tech University Rev., Refunding & Improvement, “A”, 5%, 8/15/32 | 915,000 | 1,000,305 | ||||||
Texas Transportation Commission State Highway Fund (First Tier), “A”, 4.75%, 4/01/17 | 10,130,000 | 11,337,192 | ||||||
Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7%, 11/01/30 | 735,000 | 817,371 | ||||||
Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7.125%, 11/01/40 | 2,575,000 | 2,832,989 | ||||||
Tyler, TX, Health Facilities Development Corp. (East Texas Medical Center), “A”, 5.25%, 11/01/32 | 1,715,000 | 1,692,894 | ||||||
|
| |||||||
$ | 164,831,669 | |||||||
U.S. Virgin Islands - 0.1% | ||||||||
Virgin Islands Public Finance Authority Rev. (Diageo Project), “A”, 6.75%, 10/01/37 | $ | 2,200,000 | $ | 2,392,874 | ||||
Virgin Islands Public Finance Authority Rev., “A”, 5.25%, 10/01/24 | 130,000 | 133,289 | ||||||
|
| |||||||
$ | 2,526,163 | |||||||
Utah - 0.4% | ||||||||
Intermountain Power Agency, UT, “A”, ETM, 6.15%, 7/01/14 (c) | $ | 7,210,000 | $ | 7,295,727 | ||||
Intermountain Power Agency, UT, Power Supply Rev., “A”, 5%, 7/01/22 | 1,250,000 | 1,402,375 | ||||||
|
| |||||||
$ | 8,698,102 | |||||||
Vermont - 0.2% | ||||||||
Vermont Economic Development Authority, Solid Waste Disposal Rev. (Casella Waste Systems, Inc.), 4.75%, 4/01/36 (b) | $ | 1,805,000 | $ | 1,747,583 | ||||
Vermont Housing Finance Agency, Multi-Purpose Rev., “C”, 4%, 11/01/43 | 1,500,000 | 1,627,740 | ||||||
|
| |||||||
$ | 3,375,323 | |||||||
Virginia - 0.7% | ||||||||
Commonwealth of Virginia, Transportation Board Rev., Capital Projects, 5%, 5/15/20 | $ | 4,870,000 | $ | 5,747,038 | ||||
Embrey Mill Community Development Authority, VA, Special Assessment Rev., 7.25%, 3/01/43 | 2,135,000 | 2,079,469 | ||||||
Henrico County, VA, Industrial Development Authority Rev. (Bon Secours Health Systems, Inc.), RIBS, FRN, AGM, 11.3%, 8/23/27 (p) | 4,500,000 | 5,533,245 | ||||||
Manassas Park, VA, Economic Development Authority Lease Rev., “A”, 6%, 7/15/35 | 845,000 | 863,506 |
40
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Virginia - continued | ||||||||
Peninsula Ports Authority, VA, Coal Terminal Rev. (Dominion Terminal Associates), 6%, 4/01/33 | $ | 470,000 | $ | 470,381 | ||||
West Point, VA, Industrial Development Authority, Solid Waste Disposal Rev. (Chesapeake Corp.), “A”, 6.375%, 3/01/19 (a)(d) | 529,028 | 53 | ||||||
|
| |||||||
$ | 14,693,692 | |||||||
Washington - 7.1% | ||||||||
FYI Properties Lease Rev. (Washington State Project), 5.5%, 6/01/34 | $ | 2,255,000 | $ | 2,435,197 | ||||
Seattle, WA, Port Rev., “B”, 5%, 8/01/24 | 3,000,000 | 3,354,690 | ||||||
Skagit County, WA, Public Hospital District No. 001 Rev. (Skagit Valley Hospital), 5.625%, 12/01/25 | 1,000,000 | 1,036,830 | ||||||
Snohomish County, WA, Public Hospital District No. 3, 5%, 12/01/31 | 5,655,000 | 5,829,966 | ||||||
State of Washington, “A”, 5%, 7/01/33 | 5,000,000 | 5,474,900 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 6.75%, 7/01/29 | 1,450,000 | 1,622,304 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 7%, 7/01/39 | 3,690,000 | 4,060,292 | ||||||
Washington Health Care Facilities Authority Rev. (Highline Medical Center), FHA, 6.25%, 8/01/36 | 5,285,000 | 6,409,648 | ||||||
Washington Health Care Facilities Authority Rev. (Providence Health & Services), “A”, 5%, 10/01/27 | 14,095,000 | 15,779,775 | ||||||
Washington Health Care Facilities Authority Rev. (Virginia Mason Medical Center), “A”, 6.25%, 8/15/42 | 3,955,000 | 4,106,160 | ||||||
Washington Higher Education Facilities Authority Rev. (Whitworth University), 5.875%, 10/01/34 | 2,165,000 | 2,278,359 | ||||||
Washington Housing Finance Community Nonprofit Housing Rev. (Rockwood Retirement Communities), 5.125%, 1/01/20 | 3,905,000 | 3,898,986 | ||||||
Washington Motor Vehicle Fuel Tax, “B”, NATL, 5%, 7/01/32 (u) | 25,010,000 | 27,051,566 | ||||||
Washington Motor Vehicle Fuel Tax, “E”, 5%, 2/01/37 | 16,315,000 | 17,907,344 | ||||||
Washington Motor Vehicle Fuel Tax, “E”, 5%, 2/01/38 | 17,130,000 | 18,757,693 | ||||||
Washington Motor Vehicle Fuel Tax, “E”, 5%, 2/01/39 | 17,985,000 | 19,647,713 | ||||||
Washington Public Power Supply System Rev. (Nuclear Project #3), 7.125%, 7/01/16 | 5,145,000 | 5,898,485 | ||||||
|
| |||||||
$ | 145,549,908 | |||||||
West Virginia - 0.3% | ||||||||
Monongalia County, WV, Board of Education, 5%, 5/01/29 | $ | 2,445,000 | $ | 2,697,446 | ||||
Monongalia County, WV, Board of Education, 5%, 5/01/31 | 675,000 | 736,263 | ||||||
Monongalia County, WV, Board of Education, 5%, 5/01/33 | 965,000 | 1,042,779 | ||||||
West Virginia Hospital Finance Authority, Hospital Rev. (Thomas Health System), 6.5%, 10/01/38 | 2,110,000 | 2,089,596 | ||||||
|
| |||||||
$ | 6,566,084 |
41
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Wisconsin - 0.5% | ||||||||
Wisconsin Health & Educational Facilities Authority Rev. (Aurora Health Care, Inc.), “A”, 5%, 7/15/26 | $ | 2,215,000 | $ | 2,336,448 | ||||
Wisconsin Health & Educational Facilities Authority Rev. (Aurora Health Care, Inc.), “A”, 5%, 7/15/28 | 665,000 | 692,112 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (ProHealth Care, Inc. Obligated Group), 6.625%, 2/15/39 | 1,220,000 | 1,354,017 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), “A”, 7.25%, 9/15/29 | 430,000 | 471,779 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), “A”, 7.625%, 9/15/39 | 1,390,000 | 1,528,792 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (Wheaton Franciscan Healthcare), 5.25%, 8/15/18 | 1,500,000 | 1,604,535 | ||||||
Wisconsin Public Finance Authority, Airport Facilities Rev. (Transportation Infrastructure Properties LLC), “B”, 5%, 7/01/22 | 1,480,000 | 1,636,599 | ||||||
|
| |||||||
$ | 9,624,282 | |||||||
Total Municipal Bonds (Identified Cost, $1,881,577,785) | $ | 1,974,095,107 | ||||||
Floating Rate Demand Notes - 0.2% | ||||||||
Lincoln County, WY, Pollution Control Rev. (Exxon Mobil Corp.), “B”, 0.06%, due 4/01/14 | $ | 1,500,000 | $ | 1,500,000 | ||||
Lincoln County, WY, Pollution Control Rev. (Exxon Mobil Corp.), “C”, 0.06%, due 4/01/14 | 2,300,000 | 2,300,000 | ||||||
Total Floating Rate Demand Notes, at Cost and Value | $ | 3,800,000 | ||||||
Money Market Funds - 6.4% | ||||||||
MFS Institutional Money Market Portfolio, 0.09%, at Cost and Net Asset Value (v) | 131,256,843 | $ | 131,256,843 | |||||
Total Investments (Identified Cost, $2,016,634,628) | $ | 2,109,151,950 | ||||||
Other Assets, Less Liabilities - (2.5)% | (50,628,461 | ) | ||||||
Net Assets - 100.0% | $ | 2,058,523,489 |
(a) | Non-income producing security. |
(b) | Mandatory tender date is earlier than stated maturity date. |
(c) | Refunded bond. |
(d) | In default. Interest and/or scheduled principal payment(s) have been missed. |
(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 $5,818,076 representing 0.3% of net assets. |
(p) | Primary inverse floater. |
(u) | Underlying security deposited into special purpose trust (“the trust”) by investment banker upon creation of self-deposited inverse floaters. |
42
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Portfolio of Investments – continued
(v) | Underlying affiliated fund 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:
COP | Certificate of Participation |
ETM | Escrowed to Maturity |
FRN | Floating Rate Note. Interest rate resets periodically and may not be the rate reported at period end. |
LOC | Letter of Credit |
Insurers | Inverse Floaters | |||||
AGM | Assured Guaranty Municipal | RIBS | Residual Interest Bonds | |||
AMBAC | AMBAC Indemnity Corp. | RITES | Residual Interest Tax-Exempt Security | |||
ASSD GTY | Assured Guaranty Insurance Co. | |||||
BAM | Build America Mutual | |||||
BHAC | Berkshire Hathaway Assurance Corp. | |||||
CALHF | California Housing Finance Agency | |||||
FGIC | Financial Guaranty Insurance Co. | |||||
FHA | Federal Housing Administration | |||||
FNMA | Federal National Mortgage Assn. | |||||
GNMA | Government National Mortgage Assn. | |||||
NATL | National Public Finance Guarantee Corp. | |||||
PSF | Permanent School Fund | |||||
SYNCORA | Syncora Guarantee Inc. |
See Notes to Financial Statements
43
Table of Contents
Financial Statements
STATEMENT OF ASSETS AND LIABILITIES
At 3/31/14
This statement represents your fund’s balance sheet, which details the assets and liabilities comprising the total value of the fund.
Assets | ||||
Investments- | ||||
Non-affiliated issuers, at value (identified cost, $1,885,377,785) | $1,977,895,107 | |||
Underlying affiliated funds, at cost and value | 131,256,843 | |||
Total investments, at value (identified cost, $2,016,634,628) | $2,109,151,950 | |||
Receivables for | ||||
Investments sold | 5,199,971 | |||
Fund shares sold | 2,896,842 | |||
Interest | 27,145,201 | |||
Other assets | 7,960 | |||
Total assets | $2,144,401,924 | |||
Liabilities | ||||
Payables for | ||||
Distributions | $812,798 | |||
Investments purchased | 37,514,536 | |||
Interest expense and fees | 86,768 | |||
Fund shares reacquired | 3,377,162 | |||
Payable to the holders of the floating rate certificates from trust assets | 42,766,138 | |||
Payable to affiliates | ||||
Investment adviser | 55,785 | |||
Shareholder servicing costs | 1,013,759 | |||
Distribution and service fees | 37,624 | |||
Payable for independent Trustees’ compensation | 26,898 | |||
Accrued expenses and other liabilities | 186,967 | |||
Total liabilities | $85,878,435 | |||
Net assets | $2,058,523,489 | |||
Net assets consist of | ||||
Paid-in capital | $2,001,331,148 | |||
Unrealized appreciation (depreciation) on investments | 92,517,322 | |||
Accumulated net realized gain (loss) on investments | (37,202,165 | ) | ||
Undistributed net investment income | 1,877,184 | |||
Net assets | $2,058,523,489 | |||
Shares of beneficial interest outstanding | 242,679,139 |
Net assets | Shares outstanding | Net asset value per share (a) | ||||||||||
Class A | $736,374,278 | 86,824,849 | $8.48 | |||||||||
Class B | 28,219,902 | 3,322,555 | 8.49 | |||||||||
Class C | 162,442,842 | 19,086,946 | 8.51 | |||||||||
Class I | 546,219,929 | 64,476,071 | 8.47 | |||||||||
Class A1 | 584,286,888 | 68,853,385 | 8.49 | |||||||||
Class B1 | 979,650 | 115,333 | 8.49 |
(a) | Maximum offering price per share was equal to the net asset value per share for all share classes, except for Class A and Class A1, for which the maximum offering prices per share were $8.90 [100 / 95.25 x $8.48] and $8.91 [100 / 95.25 x $8.49], respectively . On sales of $50,000 or more, the maximum offering prices of Class A and Class A1 shares are reduced. A contingent deferred sales charge may be imposed on redemptions of Class A, Class B, Class C, Class A1, and Class B1 shares. |
See Notes to Financial Statements
44
Table of Contents
Financial Statements
Year ended 3/31/14
This statement describes how much your fund earned in investment income and accrued in expenses. It also describes any gains and/or losses generated by fund operations.
Net investment income | ||||
Income | ||||
Interest | $95,758,450 | |||
Dividends from underlying affiliated funds | 109,968 | |||
Total investment income | $95,868,418 | |||
Expenses | ||||
Management fee | $8,217,840 | |||
Distribution and service fees | 4,325,874 | |||
Shareholder servicing costs | 1,717,722 | |||
Administrative services fee | 256,926 | |||
Independent Trustees’ compensation | 44,470 | |||
Custodian fee | 210,221 | |||
Shareholder communications | 84,328 | |||
Audit and tax fees | 57,414 | |||
Legal fees | 27,444 | |||
Interest expense and fees | 412,765 | |||
Miscellaneous | 271,938 | |||
Total expenses | $15,626,942 | |||
Fees paid indirectly | (35 | ) | ||
Reduction of expenses by investment adviser and distributor | (913,531 | ) | ||
Net expenses | $14,713,376 | |||
Net investment income | $81,155,042 | |||
Realized and unrealized gain (loss) on investments | ||||
Realized gain (loss) on investments (identified cost basis) | $(37,959,177 | ) | ||
Change in unrealized appreciation (depreciation) on investments | $(91,426,776 | ) | ||
Net realized and unrealized gain (loss) on investments | $(129,385,953 | ) | ||
Change in net assets from operations | $(48,230,911 | ) |
See Notes to Financial Statements
45
Table of Contents
Financial Statements
STATEMENTS OF CHANGES IN NET ASSETS
These statements describe the increases and/or decreases in net assets resulting from operations, any distributions, and any shareholder transactions.
Years ended 3/31 | ||||||||
2014 | 2013 | |||||||
Change in net assets | ||||||||
From operations | ||||||||
Net investment income | $81,155,042 | $85,190,522 | ||||||
Net realized gain (loss) on investments | (37,959,177 | ) | 9,142,369 | |||||
Net unrealized gain (loss) on investments | (91,426,776 | ) | 43,563,649 | |||||
Change in net assets from operations | $(48,230,911 | ) | $137,896,540 | |||||
Distributions declared to shareholders | ||||||||
From net investment income | $(77,388,318 | ) | $(80,639,245 | ) | ||||
Change in net assets from fund share transactions | $(156,666,308 | ) | $329,312,201 | |||||
Total change in net assets | $(282,285,537 | ) | $386,569,496 | |||||
Net assets | ||||||||
At beginning of period | 2,340,809,026 | 1,954,239,530 | ||||||
At end of period (including undistributed net investment income of $1,877,184 and $1,948,859, respectively) | $2,058,523,489 | $2,340,809,026 |
See Notes to Financial Statements
46
Table of Contents
Financial Statements
The financial highlights table is intended to help you understand the fund’s financial performance for the past 5 years (or life of a particular share class, if shorter). Certain information reflects financial results for a single fund share. The total returns in the table represent the rate by which an investor would have earned (or lost) on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
Class A | Years ended 3/31 | |||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
Net asset value, beginning of period | $8.94 | $8.68 | $7.91 | $8.32 | $7.66 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.33 | $0.35 | $0.39 | $0.41 | $0.41 | |||||||||||||||
Net realized and unrealized gain (loss) | (0.47 | ) | 0.24 | 0.76 | (0.42 | ) | 0.65 | |||||||||||||
Total from investment operations | $(0.14 | ) | $0.59 | $1.15 | $(0.01 | ) | $1.06 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.32 | ) | $(0.33 | ) | $(0.38 | ) | $(0.40 | ) | $(0.40 | ) | ||||||||||
Net asset value, end of period (x) | $8.48 | $8.94 | $8.68 | $7.91 | $8.32 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (1.52 | ) | 6.88 | 14.83 | (0.24 | ) | 14.01 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 0.80 | 0.79 | 0.81 | 0.81 | 0.82 | |||||||||||||||
Expenses after expense reductions (f) | 0.75 | 0.76 | 0.77 | 0.78 | 0.78 | |||||||||||||||
Net investment income | 3.92 | 3.90 | 4.69 | 4.95 | 5.04 | |||||||||||||||
Portfolio turnover | 32 | 23 | 25 | 23 | 15 | |||||||||||||||
Net assets at end of period (000 omitted) | $736,374 | $1,027,992 | $829,860 | $764,621 | $632,523 | |||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||
Ratio of expenses to average net assets | 0.73 | 0.74 | 0.74 | 0.74 | 0.75 |
See Notes to Financial Statements
47
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Financial Highlights – continued
Class B | Years ended 3/31 | |||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
Net asset value, beginning of period | $8.95 | $8.70 | $7.92 | $8.34 | $7.68 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.27 | $0.28 | $0.33 | $0.35 | $0.35 | |||||||||||||||
Net realized and unrealized gain (loss) | (0.48 | ) | 0.23 | 0.77 | (0.43 | ) | 0.65 | |||||||||||||
Total from investment operations | $(0.21 | ) | $0.51 | $1.10 | $(0.08 | ) | $1.00 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.25 | ) | $(0.26 | ) | $(0.32 | ) | $(0.34 | ) | $(0.34 | ) | ||||||||||
Net asset value, end of period (x) | $8.49 | $8.95 | $8.70 | $7.92 | $8.34 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (2.26 | ) | 5.95 | 14.09 | (1.10 | ) | 13.15 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.55 | 1.54 | 1.56 | 1.56 | 1.57 | |||||||||||||||
Expenses after expense reductions (f) | 1.51 | 1.51 | 1.52 | 1.53 | 1.53 | |||||||||||||||
Net investment income | 3.16 | 3.15 | 3.91 | 4.21 | 4.30 | |||||||||||||||
Portfolio turnover | 32 | 23 | 25 | 23 | 15 | |||||||||||||||
Net assets at end of period (000 omitted) | $28,220 | $37,759 | $31,883 | $22,842 | $23,060 | |||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||
Ratio of expenses to average net assets | 1.49 | 1.48 | 1.49 | 1.49 | 1.50 |
See Notes to Financial Statements
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Financial Highlights – continued
Class C | Years ended 3/31 | |||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
Net asset value, beginning of period | $8.97 | $8.71 | $7.94 | $8.35 | $7.69 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.27 | $0.28 | $0.33 | $0.35 | $0.35 | |||||||||||||||
Net realized and unrealized gain (loss) | (0.48 | ) | 0.24 | 0.76 | (0.42 | ) | 0.65 | |||||||||||||
Total from investment operations | $(0.21 | ) | $0.52 | $1.09 | $(0.07 | ) | $1.00 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.25 | ) | $(0.26 | ) | $(0.32 | ) | $(0.34 | ) | $(0.34 | ) | ||||||||||
Net asset value, end of period (x) | $8.51 | $8.97 | $8.71 | $7.94 | $8.35 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (2.26 | ) | 6.06 | 13.92 | (0.97 | ) | 13.13 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.55 | 1.54 | 1.56 | 1.56 | 1.57 | |||||||||||||||
Expenses after expense reductions (f) | 1.51 | 1.51 | 1.52 | 1.52 | 1.53 | |||||||||||||||
Net investment income | 3.15 | 3.14 | 3.92 | 4.19 | 4.26 | |||||||||||||||
Portfolio turnover | 32 | 23 | 25 | 23 | 15 | |||||||||||||||
Net assets at end of period (000 omitted) | $162,443 | $234,735 | $187,078 | $149,727 | $143,504 | |||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||
Ratio of expenses to average net assets | 1.49 | 1.48 | 1.49 | 1.49 | 1.50 |
See Notes to Financial Statements
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Financial Highlights – continued
Class I | Years ended 3/31 | |||||||||||
2014 | 2013 | 2012 (i) | ||||||||||
Net asset value, beginning of period | $8.93 | $8.67 | $8.22 | |||||||||
Income (loss) from investment operations | ||||||||||||
Net investment income (d) | $0.35 | $0.37 | $0.27 | |||||||||
Net realized and unrealized gain (loss) on investments | (0.47 | ) | 0.24 | 0.44 | (g) | |||||||
Total from investment operations | $(0.12 | ) | $0.61 | $0.71 | ||||||||
Less distributions declared to shareholders | ||||||||||||
From net investment income | $(0.34 | ) | $(0.35 | ) | $(0.26 | ) | ||||||
Net asset value, end of period (x) | $8.47 | $8.93 | $8.67 | |||||||||
Total return (%) (r)(s)(x) | (1.29 | ) | 7.15 | 8.75 | (n) | |||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
Expenses before expense reductions (f) | 0.55 | 0.55 | 0.55 | (a) | ||||||||
Expenses after expense reductions (f) | 0.50 | 0.51 | 0.52 | (a) | ||||||||
Net investment income | 4.13 | 4.13 | 4.70 | (a) | ||||||||
Portfolio turnover | 32 | 23 | 25 | |||||||||
Net assets at end of period (000 omitted) | $546,220 | $334,033 | $186,734 | |||||||||
Supplemental Ratios (%): | ||||||||||||
Ratio of expenses to average net assets after expense reductions and | 0.48 | 0.49 | 0.49 | (a) |
See Notes to Financial Statements
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Financial Highlights – continued
Class A1 | Years ended 3/31 | |||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
Net asset value, beginning of period | $8.95 | $8.69 | $7.92 | $8.33 | $7.67 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.35 | $0.37 | $0.41 | $0.43 | $0.43 | |||||||||||||||
Net realized and unrealized gain (loss) | (0.47 | ) | 0.24 | 0.76 | (0.42 | ) | 0.65 | |||||||||||||
Total from investment operations | $(0.12 | ) | $0.61 | $1.17 | $0.01 | $1.08 | ||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.34 | ) | $(0.35 | ) | $(0.40 | ) | $(0.42 | ) | $(0.42 | ) | ||||||||||
Net asset value, end of period (x) | $8.49 | $8.95 | $8.69 | $7.92 | $8.33 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (1.27 | ) | 7.14 | 15.11 | 0.01 | 14.28 | ||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 0.55 | 0.55 | 0.56 | 0.56 | 0.57 | |||||||||||||||
Expenses after expense reductions (f) | 0.51 | 0.51 | 0.52 | 0.53 | 0.53 | |||||||||||||||
Net investment income | 4.17 | 4.18 | 4.96 | 5.22 | 5.32 | |||||||||||||||
Portfolio turnover | 32 | 23 | 25 | 23 | 15 | |||||||||||||||
Net assets at end of period (000 omitted) | $584,287 | $703,916 | $714,380 | $689,074 | $787,041 | |||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||
Ratio of expenses to average net assets | 0.49 | 0.49 | 0.49 | 0.49 | 0.50 |
See Notes to Financial Statements
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Financial Highlights – continued
Class B1 | Years ended 3/31 | |||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
Net asset value, beginning of period | $8.95 | $8.69 | $7.92 | $8.34 | $7.67 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.29 | $0.31 | $0.35 | $0.37 | $0.37 | |||||||||||||||
Net realized and unrealized gain (loss) | (0.48 | ) | 0.24 | 0.76 | (0.43 | ) | 0.66 | |||||||||||||
Total from investment operations | $(0.19 | ) | $0.55 | $1.11 | $(0.06 | ) | $1.03 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.27 | ) | $(0.29 | ) | $(0.34 | ) | $(0.36 | ) | $(0.36 | ) | ||||||||||
Net asset value, end of period (x) | $8.49 | $8.95 | $8.69 | $7.92 | $8.34 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (2.02 | ) | 6.34 | 14.24 | (0.86 | ) | 13.56 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.55 | 1.54 | 1.56 | 1.56 | 1.48 | |||||||||||||||
Expenses after expense reductions (f) | 1.27 | 1.27 | 1.28 | 1.29 | 1.29 | |||||||||||||||
Net investment income | 3.39 | 3.47 | 4.23 | 4.46 | 4.57 | |||||||||||||||
Portfolio turnover | 32 | 23 | 25 | 23 | 15 | |||||||||||||||
Net assets at end of period (000 omitted) | $980 | $2,374 | $4,304 | $6,230 | $12,558 | |||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||
Ratio of expenses to average net assets | 1.25 | 1.25 | 1.26 | 1.26 | 1.26 |
(a) | Annualized. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(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. |
(i) | For the period from the class inception, August 1, 2011, through the stated period end. |
(l) | Interest expense and fees relate to payments made to the holders of the floating rate certificates from trust assets. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(x) | The net asset values per share 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. |
See Notes to Financial Statements
52
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(1) Business and Organization
MFS Municipal Income Fund (the fund) is a diversified series of MFS Municipal Series Trust which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company.
The fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services – Investment Companies.
(2) Significant Accounting Policies
General – The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated subsequent events occurring after the date of the fund’s Statement of Assets and Liabilities through the date that the financial statements were issued. The fund invests primarily in municipal instruments. The value of municipal instruments can be affected by changes in their actual or perceived credit quality. The credit quality of municipal instruments can be affected by, among other things, the financial condition of the issuer or guarantor, the issuer’s future borrowing plans and sources of revenue, the economic feasibility of the revenue bond project or general borrowing purpose, political or economic developments in the region where the instrument is issued and the liquidity of the security. Municipal instruments generally trade in the over-the-counter market. Municipal instruments backed by current and anticipated revenues from a specific project or specific assets can be negatively affected by the discontinuance of the taxation supporting the projects or assets or the inability to collect revenues for the project or from the assets. If the Internal Revenue Service determines an issuer of a municipal instrument has not complied with the applicable tax requirements, interest from the security could become taxable, the security could decline in value, and distributions made by the fund could be taxable to shareholders.
In this reporting period, the fund adopted the disclosure provisions of FASB Accounting Standards Update 2011-11 (“ASU 2011-11”), Balance Sheet (Topic 210) – Disclosures about Offsetting Assets and Liabilities along with the related scope clarification provisions of FASB Accounting Standards Update 2013-01 (“ASU 2013-01”) entitled Balance Sheet (Topic 210) – Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. ASU 2011-11 is intended to enhance disclosures on the offsetting of financial assets and liabilities by requiring entities to disclose both gross and net information about financial instruments and transactions that are either offset in the statement of financial position or subject to an enforceable Master Netting Agreement or similar arrangement. ASU 2013-01 limits the scope of ASU 2011-11’s disclosure requirements on offsetting to financial assets and financial liabilities related to
53
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Notes to Financial Statements – continued
derivatives, repurchase and reverse repurchase agreements, and securities lending and securities borrowing transactions. The disclosures required by ASU 2011-11, to the extent applicable to the fund, have been included in the fund’s Significant Accounting Policies note under the captions for each of the fund’s in-scope financial instruments and transactions.
Investment Valuations – Debt instruments and floating rate loans (other than short-term instruments), including restricted debt instruments, are generally valued at an evaluated or composite bid as provided by a third-party pricing service. Short-term instruments with a maturity at issuance of 60 days or less generally are valued at amortized cost, which approximates market value. Open-end investment companies are generally valued at net asset value per share. Securities and other assets generally valued on the basis of information from a third-party pricing service may also be valued at a broker/dealer bid quotation. Values obtained from third-party pricing services can utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics, and other market data.
The Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of the fund’s investments (including any fair valuation) to the adviser pursuant to valuation policies and procedures approved by the Board. If the adviser determines that reliable market quotations are not readily available, investments are valued at fair value as determined in good faith by the adviser in accordance with such procedures under the oversight of the Board of Trustees. Under the fund’s valuation policies and procedures, market quotations are not considered to be readily available for most types of debt instruments and floating rate loans and many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services. In addition, investments may be valued at fair value if the adviser determines that an investment’s value has been materially affected by events occurring after the close of the exchange or market on which the investment is principally traded (such as foreign exchange or market) and prior to the determination of the fund’s net asset value, or after the halting of trading of a specific security where trading does not resume prior to the close of the exchange or market on which the security is principally traded. The adviser generally relies on third-party pricing services or other information (such as the correlation with price movements of similar securities in the same or other markets; the type, cost and investment characteristics of the security; the business and financial condition of the issuer; and trading and other market data) to assist in determining whether to fair value and at what value to fair value an investment. The value of an investment for purposes of calculating the fund’s net asset value can differ depending on the source and method used to determine value. When fair valuation is used, the value of an investment used to determine the fund’s net asset value may differ from quoted or published prices for the same investment. There can be no assurance that the fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the fund determines its net asset value per share.
Various inputs are used in determining the value of the fund’s assets or liabilities. These inputs are categorized into three broad levels. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of
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Notes to Financial Statements – continued
input that is significant to the fair value measurement. The fund’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes unobservable inputs, which may include the adviser’s own assumptions in determining the fair value of investments. The following is a summary of the levels used as of March 31, 2014 in valuing the fund’s assets or liabilities:
Investments at Value | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Municipal Bonds | $— | $1,974,095,107 | $— | $1,974,095,107 | ||||||||||||
Short Term Securities | — | 3,800,000 | — | 3,800,000 | ||||||||||||
Mutual Funds | 131,256,843 | — | — | 131,256,843 | ||||||||||||
Total Investments | $131,256,843 | $1,977,895,107 | $— | $2,109,151,950 |
For further information regarding security characteristics, see the Portfolio of Investments.
Inverse Floaters – The fund invests in municipal inverse floating rate securities which are structured by the issuer (known as primary market inverse floating rate securities) or by an investment banker utilizing municipal bonds which have already been issued (known as secondary market inverse floating rate securities) to have variable rates of interest which typically move in the opposite direction of short term interest rates. A secondary market inverse floating rate security is created when an investment banker transfers a fixed rate municipal bond to a special purpose trust, and causes the trust to (a) issue floating rate certificates to third parties, in an amount equal to a fraction of the par amount of the deposited bonds (these certificates usually pay tax-exempt interest at short-term interest rates that typically reset weekly; and the certificate holders typically, on seven days notice, have the option to tender their certificates to the investment banker or another party for redemption at par plus accrued interest), and (b) issue inverse floating rate certificates (sometimes referred to as “inverse floaters”). If the holders of the inverse floaters transfer the municipal bonds to an investment banker for the purpose of depositing the municipal bonds into the special purpose trust, the inverse floating rate certificates that are issued by the trust are referred to as “self-deposited inverse floaters.” If the bonds held by the trust are purchased by the investment banker for deposit into the trust from someone other than the purchasers of the inverse floaters, the inverse floating rate certificates that are issued by the trust are referred to as “externally deposited inverse floaters.” Such self-deposited inverse floaters held by the fund are accounted for as secured borrowings, with the municipal bonds reflected in the investments of the fund and amounts owed to the holders of the floating rate certificates under the provisions of the trust, which amounts are paid solely from the assets of the trust, reflected as liabilities of the fund in the Statement of Assets and Liabilities under the caption, “Payable to the holders of the floating rate certificates from trust assets”. The carrying value of the fund’s payable to the holders of the floating rate certificates from trust assets as reported in the fund’s Statement of Assets and Liabilities approximates its fair value. The value of the payable to the holders of the floating rate certificates from trust assets as of the reporting date is considered level 2 under the fair value hierarchy
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disclosure. At March 31, 2014, the fund’s payable to the holders of the floating rate certificates from trust assets was $42,766,138 and the interest rate on the floating rate certificates issued by the trust was 0.08%. For the year ended March 31, 2014, the average payable to the holders of the floating rate certificates from trust assets was $54,121,978 at a weighted average interest rate of 0.10%. Interest expense and fees relate to interest payments made to the holders of certain floating rate certificates and associated fees, both of which are made from trust assets. Interest expense and fees are recorded as incurred. For the year ended March 31, 2014, interest expense and fees in connection with self-deposited inverse floaters were $412,765. Primary and externally deposited inverse floaters held by the fund are not accounted for as secured borrowings.
Indemnifications – Under the fund’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the fund. Additionally, in the normal course of business, the fund enters into agreements with service providers that may contain indemnification clauses. The fund’s maximum exposure under these agreements is unknown as this would involve future claims that may be made against the fund that have not yet occurred.
Investment Transactions and Income – Investment transactions are recorded on the trade date. Interest income is recorded on the accrual basis. All premium and discount is amortized or accreted for financial statement purposes in accordance with U.S. generally accepted accounting principles. Interest payments received in additional securities are recorded on the ex-interest date in an amount equal to the value of the security on such date. Debt obligations may be placed on non-accrual status or set to accrue at a rate of interest less than the contractual coupon when the collection of all or a portion of interest has become doubtful. Interest income for those debt obligations may be further reduced by the write-off of the related interest receivables when deemed uncollectible.
The fund may receive proceeds from litigation settlements. Any proceeds received from litigation involving portfolio holdings are reflected in the Statement of Operations in realized gain/loss if the security has been disposed of by the fund or in unrealized gain/loss if the security is still held by the fund. Any other proceeds from litigation not related to portfolio holdings are reflected as other income in the Statement of Operations.
Legal fees and other related expenses incurred to preserve and protect the value of a security owned are added to the cost of the security; other legal fees are expensed. Capital infusions made directly to the security issuer, which are generally non-recurring, incurred to protect or enhance the value of high-yield debt securities, are reported as additions to the cost basis of the security. Costs that are incurred to negotiate the terms or conditions of capital infusions or that are expected to result in a plan of reorganization are reported as realized losses. Ongoing costs incurred to protect or enhance an investment, or costs incurred to pursue other claims or legal actions, are expensed.
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Notes to Financial Statements – continued
Fees Paid Indirectly – The fund’s custody fee may be reduced according to an arrangement that measures the value of cash deposited with the custodian by the fund. This amount, for the year ended March 31, 2014, is shown as a reduction of total expenses in the Statement of Operations.
Tax Matters and Distributions – The fund intends to qualify as a regulated investment company, as defined under Subchapter M of the Internal Revenue Code, and to distribute all of its taxable and tax-exempt income, including realized capital gains. As a result, no provision for federal income tax is required. The fund’s federal tax returns, when filed, will remain subject to examination by the Internal Revenue Service for a three year period. Management has analyzed the fund’s tax positions taken on federal and state tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
Distributions to shareholders are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. Certain capital accounts in the financial statements are periodically adjusted for permanent differences in order to reflect their tax character. These adjustments have no impact on net assets or net asset value per share. Temporary differences which arise from recognizing certain items of income, expense, gain or loss in different periods for financial statement and tax purposes will reverse at some time in the future. Distributions in excess of net investment income or net realized gains are temporary overdistributions for financial statement purposes resulting from differences in the recognition or classification of income or distributions for financial statement and tax purposes.
Book/tax differences primarily relate to amortization and accretion of debt securities.
The tax character of distributions declared to shareholders for the last two fiscal years is as follows:
3/31/14 | 3/31/13 | |||||||
Ordinary income (including any short-term capital gains) | $217,925 | $425,667 | ||||||
Tax-exempt income | 77,170,393 | 80,213,578 | ||||||
Total distributions | $77,388,318 | $80,639,245 |
The federal tax cost and the tax basis components of distributable earnings were as follows:
As of 3/31/14 | ||||
Cost of investments | $1,964,963,464 | |||
Gross appreciation | 116,883,630 | |||
Gross depreciation | (15,461,282 | ) | ||
Net unrealized appreciation (depreciation) | $101,422,348 | |||
Undistributed tax-exempt income | 8,150,720 | |||
Capital loss carryforwards | (44,500,124 | ) | ||
Post-October capital loss deferral | (1,607,067 | ) | ||
Other temporary differences | (6,273,536 | ) |
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Notes to Financial Statements – continued
Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized for fund fiscal years beginning after March 31, 2011 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses (“post-enactment losses”). Previously, net capital losses were carried forward for eight years and treated as short-term losses (“pre-enactment losses”). As a transition rule, the Act requires that all post-enactment net capital losses be used before pre-enactment net capital losses.
As of March 31, 2014, the fund had capital loss carryforwards available to offset future realized gains as follows:
Pre-enactment losses which expire as follows: | ||||
3/31/18 | $(937,881 | ) | ||
3/31/19 | (7,352,883 | ) | ||
Total | $(8,290,764 | ) | ||
Post-enactment losses which are characterized as follows: | ||||
Short-Term | $(25,965,052 | ) | ||
Long-Term | (10,244,308 | ) | ||
Total | $(36,209,360 | ) |
Multiple Classes of Shares of Beneficial Interest – The fund offers multiple classes of shares, which differ in their respective distribution and service fees. The fund’s income and common expenses are allocated to shareholders based on the value of settled shares outstanding of each class. The fund’s realized and unrealized gain (loss) are allocated to shareholders based on the daily net assets of each class. Dividends are declared separately for each class. Differences in per share dividend rates are generally due to differences in separate class expenses. Class B and Class B1 shares will convert to Class A and Class A1 shares, respectively approximately eight years after purchase. The fund’s distributions declared to shareholders as reported in the Statements of Changes in Net Assets are presented by class as follows:
From net investment income | ||||||||
Year ended 3/31/14 | Year ended 3/31/13 | |||||||
Class A | $31,460,760 | $35,251,132 | ||||||
Class B | 940,625 | 1,071,488 | ||||||
Class C | 5,612,258 | 6,335,838 | ||||||
Class I | 14,420,196 | 9,308,718 | ||||||
Class A1 | 24,906,692 | 28,570,074 | ||||||
Class B1 | 47,787 | 101,995 | ||||||
Total | $77,388,318 | $80,639,245 |
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(3) Transactions with Affiliates
Investment Adviser – The fund has an investment advisory agreement with MFS to provide overall investment management and related administrative services and facilities to the fund. The management fee is computed daily and paid monthly at an annual rate of 0.40% of the fund’s average daily net assets.
The investment adviser has agreed in writing to reduce its management fee to 0.37% of the fund’s average daily net assets in excess of $1.3 billion up to $2.0 billion and 0.35% of average daily net assets in excess of $2.0 billion. This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until July 31, 2014. For the year ended March 31, 2014, this management fee reduction amounted to $244,879, which is included in the reduction of total expenses in the Statement of Operations. MFS has also agreed in writing to reduce its management fee by a specified amount if certain MFS mutual fund assets exceed thresholds agreed to by MFS and the fund’s Board of Trustees. For the year ended March 31, 2014, this management fee reduction amounted to $30,887, which is included in the reduction of total expenses in the Statement of Operations. The management fee incurred for the year ended March 31, 2014 was equivalent to an annual effective rate of 0.39% of the fund’s average daily net assets.
The investment adviser has agreed in writing to pay a portion of the fund’s operating expenses, exclusive of management fees, distribution and service fees, interest, taxes, extraordinary expenses, brokerage and transaction costs and investment-related expenses (including interest expenses and fees associated with investments in inverse floating rate instruments), such that fund operating expenses do not exceed 0.10% annually of the fund’s average daily net assets. This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until July 31, 2014. For the year ended March 31, 2014, this reduction amounted to $601,209 and is included in the reduction of total expenses in the Statement of Operations.
Distributor – MFS Fund Distributors, Inc. (MFD), a wholly-owned subsidiary of MFS, as distributor, received $353,601 and $14,419 for the year ended March 31, 2014, as its portion of the initial sales charge on sales of Class A and Class A1 shares of the fund, respectively.
The Board of Trustees has adopted a distribution plan for certain share classes pursuant to Rule 12b-1 of the Investment Company Act of 1940.
The fund’s distribution plan provides that the fund will pay MFD for services provided by MFD and financial intermediaries in connection with the distribution and servicing of certain share classes. One component of the plan is a distribution fee paid to MFD and another component of the plan is a service fee paid to MFD. MFD may subsequently pay all, or a portion, of the distribution and/or service fees to financial intermediaries.
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Distribution Plan Fee Table:
Distribution Fee Rate (d) | Service Fee Rate (d) | Total Distribution Plan (d) | Annual Effective Rate (e) | Distribution and Service Fee | ||||||||||||||||
Class A | — | 0.25% | 0.25% | 0.25% | $2,105,830 | |||||||||||||||
Class B | 0.75% | 0.25% | 1.00% | 1.00% | 315,684 | |||||||||||||||
Class C | 0.75% | 0.25% | 1.00% | 1.00% | 1,889,446 | |||||||||||||||
Class B1 | 0.75% | 0.25% | 1.00% | 0.76% | 14,914 | |||||||||||||||
Total Distribution and Service Fees | $4,325,874 |
(d) | In accordance with the distribution plan for certain classes, the fund pays distribution and/or service fees equal to these annual percentage rates of each class’s average daily net assets. The distribution and service fee rates disclosed by class represent the current rates in effect at the end of the reporting period. Any rate changes, if applicable, are detailed below. |
(e) | The annual effective rates represent actual fees incurred under the distribution plan for the year ended March 31, 2014 based on each class’s average daily net assets. The service fee rate attributable to Class B1 shares within the first year of purchase is 0.25%. The service fee rate attributable to all other Class B1 shares has been reduced by MFD to 0.00% under a written agreement that will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until July 31, 2014. For the year ended March 31, 2014, this reduction amounted to $3,552 and is included in the reduction of total expenses in the Statement of Operations. MFD has voluntarily agreed to rebate a portion of each class’s 0.25% service fee attributable to accounts for which MFD retains the 0.25% service fee except for accounts attributable to MFS or its affiliates’ seed money. For the year ended March 31, 2014, this rebate amounted to $28,284, $52, and $61 for Class A, Class B, and Class C, respectively, and is included in the reduction of total expenses in the Statement of Operations. |
Certain Class A and A1 shares are subject to a contingent deferred sales charge (CDSC) in the event of a shareholder redemption within 18 months of purchase for shares purchased on or after August 1, 2012, and within 24 months of purchase for shares purchased prior to August 1, 2012. Class C shares are subject to a CDSC in the event of a shareholder redemption within 12 months of purchase. Class B and Class B1 shares are subject to a CDSC in the event of a shareholder redemption within six years of purchase. All contingent deferred sales charges are paid to MFD and during the year ended March 31, 2014, were as follows:
Amount | ||||
Class A | $91,207 | |||
Class B | 79,375 | |||
Class C | 58,384 | |||
Class A1 | — | |||
Class B1 | 885 |
Shareholder Servicing Agent – MFS Service Center, Inc. (MFSC), a wholly-owned subsidiary of MFS, receives a fee from the fund for its services as shareholder servicing agent calculated as a percentage of the average daily net assets of the fund as determined periodically under the supervision of the fund’s Board of Trustees. For the year ended March 31, 2014, the fee was $270,211, which equated to 0.0132% annually of the fund’s average daily net assets. MFSC also receives payment from the fund for out-of-pocket expenses, sub-accounting and other shareholder servicing costs
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which may be paid to affiliated and unaffiliated service providers. For the year ended March 31, 2014, these out-of-pocket expenses, sub-accounting and other shareholder servicing costs amounted to $1,447,511.
Administrator – MFS provides certain financial, legal, shareholder communications, compliance, and other administrative services to the fund. Under an administrative services agreement, the fund partially reimburses MFS the costs incurred to provide these services. The fund is charged an annual fixed amount of $17,500 plus a fee based on average daily net assets. The administrative services fee incurred for the year ended March 31, 2014 was equivalent to an annual effective rate of 0.0125% of the fund’s average daily net assets.
Trustees’ and Officers’ Compensation – The fund pays compensation to independent Trustees in the form of a retainer, attendance fees, and additional compensation to Board and Committee chairpersons. The fund does not pay compensation directly to Trustees or officers of the fund who are also officers of the investment adviser, all of whom receive remuneration for their services to the fund from MFS. Certain officers and Trustees of the fund are officers or directors of MFS, MFD, and MFSC.
Prior to December 31, 2001, the fund had an unfunded defined benefit plan (“DB plan”) for independent Trustees. As of December 31, 2001, the Board took action to terminate the DB plan with respect to then-current and any future independent Trustees, such that the DB plan covers only certain of those former independent Trustees who retired on or before December 31, 2001. The DB plan resulted in a pension expense of $2,844 and is included in independent Trustees’ compensation for the year ended March 31, 2014. The liability for deferred retirement benefits payable to certain independent Trustees under the DB plan amounted to $26,888 at March 31, 2014, and is included in “Payable for independent Trustees’ compensation” in the Statement of Assets and Liabilities.
Other – This fund and certain other funds managed by MFS (the funds) have entered into services agreements (the Agreements) which provide for payment of fees by the funds to Tarantino LLC and Griffin Compliance LLC in return for the provision of services of an Independent Chief Compliance Officer (ICCO) and Assistant ICCO, respectively, for the funds. The ICCO and Assistant ICCO are officers of the funds and the sole members of Tarantino LLC and Griffin Compliance LLC, respectively. The funds can terminate the Agreements with Tarantino LLC and Griffin Compliance LLC at any time under the terms of the Agreements. For the year ended March 31, 2014, the aggregate fees paid by the fund to Tarantino LLC and Griffin Compliance LLC were $12,135 and are included in “Miscellaneous” expense in the Statement of Operations. MFS has agreed to reimburse the fund for a portion of the payments made by the fund in the amount of $4,607, which is included in the reduction of total expenses in the Statement of Operations. Additionally, MFS has agreed to bear all expenses associated with office space, other administrative support, and supplies provided to the ICCO and Assistant ICCO.
The fund invests in the MFS Institutional Money Market Portfolio which is managed by MFS and seeks current income consistent with preservation of capital and liquidity.
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Income earned on this investment is included in “Dividends from underlying affiliated funds” in the Statement of Operations. This money market fund does not pay a management fee to MFS.
(4) Portfolio Securities
Purchases and sales of investments, other than short-term obligations, aggregated $638,139,034 and $776,455,144, respectively.
(5) Shares of Beneficial Interest
The fund’s Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest. Transactions in fund shares were as follows:
Year ended 3/31/14 | Year ended 3/31/13 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Shares sold | ||||||||||||||||
Class A | 16,698,114 | $142,378,298 | 36,472,000 | $326,896,860 | ||||||||||||
Class B | 285,299 | 2,417,714 | 1,100,675 | 9,831,689 | ||||||||||||
Class C | 2,570,610 | 22,049,319 | 7,875,002 | 70,807,617 | ||||||||||||
Class I | 48,561,475 | 408,726,226 | 19,850,296 | 178,299,684 | ||||||||||||
Class A1 | 522,908 | 4,464,650 | 1,127,701 | 10,092,638 | ||||||||||||
Class B1 | 2,760 | 23,426 | 3,599 | 32,172 | ||||||||||||
68,641,166 | $580,059,633 | 66,429,273 | $595,960,660 | |||||||||||||
Shares issued to shareholders in reinvestment of distributions | ||||||||||||||||
Class A | 3,305,143 | $27,934,427 | 3,218,071 | $28,857,419 | ||||||||||||
Class B | 95,723 | 809,735 | 97,754 | 877,642 | ||||||||||||
Class C | 532,886 | 4,517,825 | 520,167 | 4,679,367 | ||||||||||||
Class I | 1,290,841 | 10,873,874 | 823,122 | 7,370,556 | ||||||||||||
Class A1 | 2,265,384 | 19,141,145 | 2,297,677 | 20,598,377 | ||||||||||||
Class B1 | 4,248 | 36,066 | 8,469 | 75,799 | ||||||||||||
7,494,225 | $63,313,072 | 6,965,260 | $62,459,160 | |||||||||||||
Shares reacquired | ||||||||||||||||
Class A | (48,149,446 | ) | $(405,605,754 | ) | (20,294,809 | ) | $(182,345,429 | ) | ||||||||
Class B | (1,275,436 | ) | (10,763,014 | ) | (648,148 | ) | (5,813,743 | ) | ||||||||
Class C | (10,178,906 | ) | (86,043,859 | ) | (3,704,313 | ) | (33,329,539 | ) | ||||||||
Class I | (22,776,518 | ) | (189,795,718 | ) | (4,803,799 | ) | (43,009,247 | ) | ||||||||
Class A1 | (12,617,892 | ) | (106,482,583 | ) | (6,971,461 | ) | (62,445,595 | ) | ||||||||
Class B1 | (156,794 | ) | (1,348,085 | ) | (242,009 | ) | (2,164,066 | ) | ||||||||
(95,154,992 | ) | $(800,039,013 | ) | (36,664,539 | ) | $(329,107,619 | ) |
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Year ended 3/31/14 | Year ended 3/31/13 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Net change | ||||||||||||||||
Class A | (28,146,189 | ) | $(235,293,029 | ) | 19,395,262 | $173,408,850 | ||||||||||
Class B | (894,414 | ) | (7,535,565 | ) | 550,281 | 4,895,588 | ||||||||||
Class C | (7,075,410 | ) | (59,476,715 | ) | 4,690,856 | 42,157,445 | ||||||||||
Class I | 27,075,798 | 229,804,382 | 15,869,619 | 142,660,993 | ||||||||||||
Class A1 | (9,829,600 | ) | (82,876,788 | ) | (3,546,083 | ) | (31,754,580 | ) | ||||||||
Class B1 | (149,786 | ) | (1,288,593 | ) | (229,941 | ) | (2,056,095 | ) | ||||||||
(19,019,601 | ) | $(156,666,308 | ) | 36,729,994 | $329,312,201 |
(6) Line of Credit
The fund and certain other funds managed by MFS participate in a $1.1 billion unsecured committed line of credit, subject to a $1 billion sublimit, provided by a syndication of banks under a credit agreement. Borrowings may be made for temporary financing needs. Interest is charged to each fund, based on its borrowings, generally at a rate equal to the higher of the Federal Reserve funds rate or one month LIBOR plus an agreed upon spread. A commitment fee, based on the average daily, unused portion of the committed line of credit, is allocated among the participating funds at the end of each calendar quarter. In addition, the fund and other funds managed by MFS have established unsecured uncommitted borrowing arrangements with certain banks for temporary financing needs. Interest is charged to each fund, based on its borrowings, at a rate equal to the Federal Reserve funds rate plus an agreed upon spread. For the year ended March 31, 2014, the fund’s commitment fee and interest expense were $10,514 and $0, respectively, and are included in “Miscellaneous” expense in the Statement of Operations.
(7) Transactions in Underlying Affiliated Funds-Affiliated Issuers
An affiliated issuer may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. For the purposes of this report, the fund assumes the following to be an affiliated issuer:
Underlying Affiliated Fund | Beginning Shares/Par Amount | Acquisitions Shares/Par Amount | Dispositions Shares/Par Amount | Ending Shares/Par Amount | ||||||||||||
MFS Institutional Money Market Portfolio | 178,303,578 | 701,556,550 | (748,603,285 | ) | 131,256,843 | |||||||||||
Underlying Affiliated Fund | Realized Gain (Loss) | Capital Gain Distributions | Dividend Income | Ending Value | ||||||||||||
MFS Institutional Money Market Portfolio | $— | $— | $109,968 | $131,256,843 |
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of MFS Municipal Series Trust and the Shareholders of MFS Municipal Income Fund:
We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of MFS Municipal Income Fund (one of the series MFS Municipal Series Trust) (the “Fund”) as of March 31, 2014, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of March 31, 2014, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of MFS Municipal Income Fund as of March 31, 2014, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the 5 years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
May 13, 2014
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TRUSTEES AND OFFICERS — IDENTIFICATION AND BACKGROUND
The Trustees and Officers of the Trust, as of May 1, 2014, are listed below, together with their principal occupations during the past five years. (Their titles may have varied during that period.) The address of each Trustee and Officer is 111 Huntington Avenue, Boston, Massachusetts 02199-7618. It is expected that the Board will appoint Mr. Timothy M. Fagan as Chief Compliance Officer of the MFS Funds on November 1, 2014.
Name, Age | Position(s) Held with Fund | Trustee/Officer Since (h) | Principal the Past Five Years | Other Directorships (j) | ||||
INTERESTED TRUSTEES | ||||||||
Robert J. Manning (k) (age 50) | Trustee | February 2004 | Massachusetts Financial Services Company, Chairman, Chief Executive Officer and Director; President (until 2009); Chief Investment Officer (until 2010) | N/A | ||||
Robin A. Stelmach (k) (age 52) | Trustee | January 2014 | Massachusetts Financial Services Company, Executive Vice President and Chief Operating Officer | N/A | ||||
INDEPENDENT TRUSTEES | ||||||||
David H. Gunning (age 71) | Trustee and Chair of Trustees | January 2004 | Private investor | Lincoln Electric Holdings, Inc. (welding equipment manufacturer), Director; Development Alternatives, Inc. (consulting), Director/Non-Executive Chairman | ||||
Steven E. Buller (age 62) | Trustee | February 2014 | Chairman, Financial Accounting Standards Advisory Council; Standing Advisory Group, Public Company Accounting Oversight Board, Member; BlackRock, Inc. (investment management), Managing Director (until 2014), BlackRock Finco (investment management), UK, Director (until 2014) | N/A |
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Name, Age | Position(s) Held with Fund | Trustee/Officer Since (h) | Principal the Past Five Years | Other Directorships (j) | ||||
Robert E. Butler (age 72) | Trustee | January 2006 | Consultant – investment company industry regulatory and compliance matters | N/A | ||||
Maureen R. Goldfarb (age 59) | Trustee | January 2009 | Private investor | N/A | ||||
William R. Gutow (age 72) | Trustee | December 1993 | Private investor and real estate consultant; Capitol Entertainment Management Company (video franchise), Vice Chairman | Texas Donuts (donut franchise), Vice Chairman (until 2010) | ||||
Michael Hegarty (age 69) | Trustee | December 2004 | Private investor | Brookfield Office Properties, Inc. (real estate), Director; Rouse Properties Inc. (real estate), Director; Capmark Financial Group Inc. (real estate), Director | ||||
John P. Kavanaugh (age 59) | Trustee | January 2009 | Private investor | N/A | ||||
Laurie J. Thomsen (age 56) | Trustee | March 2005 | Private investor; New Profit, Inc. (venture philanthropy), Executive Partner (until 2010) | The Travelers Companies (insurance), Director | ||||
Robert W. Uek (age 72) | Trustee | January 2006 | Consultant to investment company industry | N/A | ||||
OFFICERS | ||||||||
John M. Corcoran (k) (age 49) | President | October 2008 | Massachusetts Financial Services Company, Senior Vice President | N/A | ||||
Christopher R. Bohane (k) (age 40) | Assistant Secretary and Assistant Clerk | July 2005 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | N/A | ||||
Kino Clark (k) (age 45) | Assistant Treasurer | January 2012 | Massachusetts Financial Services Company, Vice President | N/A |
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Name, Age | Position(s) Held with Fund | Trustee/Officer Since (h) | Principal the Past Five Years | Other Directorships (j) | ||||
Thomas H. Connors (k) (age 54) | Assistant Secretary and Assistant Clerk | September 2012 | Massachusetts Financial Services Company, Vice President and Senior Counsel; Deutsche Investment Management Americas Inc. (financial service provider), Director and Senior Counsel (until 2012) | N/A | ||||
Ethan D. Corey (k) (age 50) | Assistant Secretary and Assistant Clerk | July 2005 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | N/A | ||||
David L. DiLorenzo (k) (age 45) | Treasurer | July 2005 | Massachusetts Financial Services Company, Senior Vice President | N/A | ||||
Robyn L. Griffin (age 38) | Assistant Independent Chief Compliance Officer | August 2008 | Griffin Compliance LLC (provider of compliance services), Principal | N/A | ||||
Brian E. Langenfeld (k) (age 41) | Assistant Secretary and Assistant Clerk | June 2006 | Massachusetts Financial Services Company, Vice President and Senior Counsel | N/A | ||||
Susan S. Newton (k) (age 64) | Assistant Secretary and Assistant Clerk | May 2005 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | N/A | ||||
Susan A. Pereira (k) (age 43) | Assistant Secretary and Assistant Clerk | July 2005 | Massachusetts Financial Services Company, Vice President and Senior Counsel | N/A | ||||
Kasey L. Phillips (k) (age 43) | Assistant Treasurer | September 2012 | Massachusetts Financial Services Company, Vice President; Wells Fargo Funds Management, LLC, Senior Vice President, Fund Treasurer (until 2012) | N/A |
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Name, Age | Position(s) Held with Fund | Trustee/Officer Since (h) | Principal the Past Five Years | Other Directorships (j) | ||||
Mark N. Polebaum (k) (age 61) | Secretary and Clerk | January 2006 | Massachusetts Financial Services Company, Executive Vice President, General Counsel and Secretary | N/A | ||||
Frank L. Tarantino (l) (age 70) | Independent Chief Compliance Officer | June 2004 | Tarantino LLC (provider of compliance services), Principal | N/A | ||||
Richard S. Weitzel (k) (age 43) | Assistant Secretary and Assistant Clerk | October 2007 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | N/A | ||||
James O. Yost (k) (age 53) | Deputy Treasurer | September 1990 | Massachusetts Financial Services Company, Senior Vice President | N/A |
(h) | Date first appointed to serve as Trustee/officer of an MFS Fund. Each Trustee has served continuously since appointment unless indicated otherwise. For the period from December 15, 2004 until February 22, 2005, Mr. Manning served as Advisory Trustee. For the period October 2008, until January 2012, Mr. Corcoran served as Treasurer of the Funds. Prior to January 2012, Messrs. DiLorenzo and Yost served as Assistant Treasurers of the Funds. |
(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 position with MFS. The address of MFS is 111 Huntington Avenue, Boston, Massachusetts 02199-7618. |
(l) | Mr. Tarantino will retire as Independent Chief Compliance Officer of the MFS Funds on October 31, 2014. It is expected that Mr. Tarantino will continue after that date as an Independent Senior Officer of the MFS Funds. |
Each Trustee (except Ms. Stelmach and Mr. Buller) has been elected by shareholders and each Trustee and officer holds office until his or her successor is chosen and qualified or until his or her earlier death, resignation, retirement or removal. The Trust does not hold annual meetings for the purpose of electing Trustees, and Trustees are not elected for fixed terms. Messrs. Butler, Kavanaugh, Uek and Ms. Thomsen are members of the Trust’s Audit Committee.
Each of the Fund’s Trustees and officers holds comparable positions with certain other funds of which MFS or a subsidiary is the investment adviser or distributor, and, in the case of the officers, with certain affiliates of MFS. As of January 1, 2014, the Trustees served as board members of 142 funds within the MFS Family of Funds.
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The Statement of Additional Information for the Fund includes further information about the Trustees and is available without charge upon request by calling 1-800-225-2606.
Investment Adviser | Custodian | |
Massachusetts Financial Services Company 111 Huntington Avenue Boston, MA 02199-7618 | JPMorgan Chase Bank, NA 4 Metrotech Center New York, NY 11245 | |
Distributor | Independent Registered Public Accounting Firm | |
MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618 | Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 | |
Portfolio Manager | ||
Geoffrey Schechter |
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BOARD REVIEW OF INVESTMENT ADVISORY AGREEMENT
A discussion regarding the Board’s most recent review and renewal of the fund’s Investment Advisory Agreement with MFS is available by clicking on the fund’s name under “Mutual Funds” in the “Products” section of the MFS Web site (mfs.com).
PROXY VOTING POLICIES AND INFORMATION
MFS votes proxies on behalf of the fund pursuant to proxy voting policies and procedures that are available without charge, upon request, by calling 1-800-225-2606, by visiting the Proxy Voting section of mfs.com or by visiting the SEC’s Web site at http://www.sec.gov.
Information regarding how the fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available without charge by visiting the Proxy Voting section of mfs.com or by visiting the SEC’s Web site at http://www.sec.gov.
QUARTERLY PORTFOLIO DISCLOSURE
The fund will file a complete schedule of portfolio holdings with the Securities and Exchange Commission (the Commission) for the first and third quarters of each fiscal year on Form N-Q. A shareholder can obtain the quarterly portfolio holdings report at mfs.com. The fund’s Form N-Q is also available on the EDGAR database on the Commission’s Internet Web site at http://www.sec.gov, and may be reviewed and copied at the:
Public Reference Room
Securities and Exchange Commission
100 F Street, NE, Room 1580
Washington, D.C. 20549
Information on the operation of the Public Reference Room may be obtained by calling the Commission at 1-800-SEC-0330. Copies of the fund’s Form N-Q also may be obtained, upon payment of a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov or by writing the Public Reference Section at the above address.
From time to time, MFS may post important information about the fund or the MFS funds on the MFS web site (mfs.com). This information is available by visiting the “Commentary & Announcements” and “Market Outlooks” sections of mfs.com or by clicking on the fund’s name under “Mutual Funds” in the “Products” section of mfs.com.
FEDERAL TAX INFORMATION (unaudited)
The fund will notify shareholders of amounts for use in preparing 2014 income tax forms in January 2015. The following information is provided pursuant to provisions of the Internal Revenue Code.
Of the dividends paid from net investment income during the fiscal year, 99.72% is designated as exempt interest dividends for federal income tax purposes. If the fund has earned income on private activity bonds, a portion of the dividends paid may be considered a tax preference item for purposes of computing a shareholder’s alternative minimum tax.
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rev. 3/11
| 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. |
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Page 2 |
Who we are | ||
Who is providing this notice? | MFS Funds, MFS Investment Management, MFS Institutional Advisors, Inc., MFS Fund Distributors, Inc., MFS Heritage Trust Company, and MFS Service Center, Inc. |
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 and 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.
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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 | ||
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Table of Contents
ANNUAL REPORT
March 31, 2014
MFS® MUNICIPAL SERIES TRUST
For the states of:
Alabama, Arkansas, California, Georgia, Maryland, and Massachusetts
MSTA-ANN
Table of Contents
MFS® MUNICIPAL SERIES TRUST
For the states of: Alabama, Arkansas, California, Georgia, Maryland, and Massachusetts
The report is prepared for the general information of shareholders. It is authorized for distribution to prospective investors only when preceded or accompanied by a current prospectus.
NOT FDIC INSURED Ÿ MAY LOSE VALUE Ÿ NO BANK GUARANTEE
Table of Contents
LETTER FROM THE CHAIRMAN AND CEO
Dear Shareholders:
The pace of U.S. economic growth slowed early in 2014, largely because of harsh winter weather. However, the U.S. labor market, consumer confidence and other economic data have all pointed to recovery. The U.S. Federal Reserve’s steady, gradual removal of its bond-buying stimulus, after initially causing concern, is providing some consistency, which can inspire consumer and investor confidence.
Global economic uncertainty and geopolitical tensions have added to market volatility. The eurozone, however, is making progress in its economic recovery. Japan’s progress in its battle to end deflation is expected to experience a temporary setback on the heels of the country’s sales tax increase, introduced in April.
The world’s largest economic concern remains the slowdown in China’s pace of growth as it shifts toward a more consumer-oriented economy. Any reduction in China’s economic growth rate is likely to have a ripple effect on its many trading partners.
In uncertain times such as these, it is particularly important to remember that managing risk should always be a top priority. At MFS®, active risk management is an integral part of our collaborative process. Our global team of investment professionals shares ideas and evaluates opportunities that span continents, investment disciplines and asset classes. Our goal is to build better insights, and ultimately better results, for our clients.
We understand and appreciate the economic challenges investors face, and we believe in the value of maintaining a long-term view and applying proven principles, such as asset allocation and diversification. We are confident that our unique approach can serve investors well as they work with their financial advisors to identify and pursue the most suitable opportunities.
Respectfully,
Robert J. Manning
Chairman and Chief Executive Officer
MFS Investment Management
May 13, 2014
The opinions expressed in this letter are subject to change, may not be relied upon for investment advice, and no forecasts can be guaranteed.
1
Table of Contents
MFS Alabama Municipal Bond Fund
Portfolio structure (i)
Top five industries (i) | ||||
Healthcare Revenue – Hospitals | 20.7% | |||
Universities – Colleges | 14.6% | |||
General Obligations – Schools | 12.1% | |||
General Obligations – General Purpose | 11.4% | |||
State & Local Agencies | 10.0% |
Composition including fixed income credit quality (a)(i) | ||||
AAA | 6.1% | |||
AA | 36.5% | |||
A | 34.2% | |||
BBB | 12.0% | |||
BB | 3.6% | |||
B | 0.1% | |||
Not Rated | 4.1% | |||
Cash & Other | 3.4% |
Portfolio facts (i) | ||||
Average Duration (d) | 8.0 | |||
Average Effective Maturity (m) | 16.7 yrs. | |||
Jurisdiction (i) | ||||
Alabama | 79.4% | |||
New York | 2.2% | |||
Wisconsin | 1.7% | |||
California | 1.6% | |||
Massachusetts | 1.6% | |||
U.S. Virgin Islands | 1.5% | |||
Illinois | 0.9% | |||
Guam | 0.9% | |||
Florida | 0.9% | |||
Puerto Rico | 0.8% | |||
Tennessee | 0.8% | |||
New Hampshire | 0.8% | |||
Kentucky | 0.7% | |||
Texas | 0.7% | |||
Colorado | 0.6% | |||
Virginia | 0.6% | |||
New Jersey | 0.5% | |||
Indiana | 0.3% | |||
Michigan | 0.1% |
(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. 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, including fixed income futures contracts, which have not been rated by any rating agency. The fund may not hold all of these instruments. 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 market 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 market value. The bond component will include any accrued interest amounts. |
(m) | In determining an 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. |
Where the fund holds convertible bonds, these are treated as part of the equity portion of the portfolio.
Cash & Other includes cash, other assets less liabilities, offsets to derivative positions, and short-term securities.
Percentages are based on net assets as of 3/31/14.
The portfolio is actively managed and current holdings may be different.
2
Table of Contents
Portfolio Composition – continued
MFS Arkansas Municipal Bond Fund
Portfolio structure (i)
Top five industries (i) | ||||
Universities – Colleges | 24.5% | |||
Water & Sewer Utility Revenue | 15.7% | |||
Healthcare Revenue – Hospitals | 10.1% | |||
General Obligations – Schools | 9.4% | |||
Sales & Excise Tax Revenue | 8.7% |
Composition including fixed income credit quality (a)(i) | ||||
AAA | 7.0% | |||
AA | 50.9% | |||
A | 28.7% | |||
BBB | 9.0% | |||
BB | 1.8% | |||
B | 0.4% | |||
Not Rated | 2.3% | |||
Cash & Other | (0.1)% |
Portfolio facts (i) | ||||
Average Duration (d) | 8.2 | |||
Average Effective Maturity (m) | 14.7 yrs. | |||
Jurisdiction (i) | ||||
Arkansas | 81.5% | |||
Guam | 2.9% | |||
New York | 2.7% | |||
California | 2.1% | |||
Puerto Rico | 2.0% | |||
Kentucky | 1.4% | |||
Massachusetts | 1.3% | |||
U.S. Virgin Islands | 1.1% | |||
Wisconsin | 1.0% | |||
New Jersey | 0.7% | |||
Indiana | 0.7% | |||
Texas | 0.5% | |||
New Hampshire | 0.5% | |||
Colorado | 0.5% | |||
Ohio | 0.4% | |||
Illinois | 0.3% | |||
Tennessee | 0.3% | |||
Florida | 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. 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, including fixed income futures contracts, which have not been rated by any rating agency. The fund may not hold all of these instruments. 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 market 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 market value. The bond component will include any accrued interest amounts. |
(m) | In determining an 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. |
From time to time “Cash & Other” may be negative due to timing of cash receipts and/or equivalent exposure from any derivative holdings.
Where the fund holds convertible bonds, these are treated as part of the equity portion of the portfolio.
Cash & Other includes cash, other assets less liabilities, offsets to derivative positions, and short-term securities.
Percentages are based on net assets as of 3/31/14.
The portfolio is actively managed and current holdings may be different.
3
Table of Contents
Portfolio Composition – continued
MFS California Municipal Bond Fund
Portfolio structure (i)
Top five industries (i) | ||||
Healthcare Revenue – Hospitals | 12.8% | |||
Tax Assessment | 11.3% | |||
Universities – Colleges | 10.2% | |||
General Obligations – General Purpose | 9.4% | |||
General Obligations – Schools | 8.5% |
Composition including fixed income credit quality (a)(i) | ||||
AAA | 1.7% | |||
AA | 23.9% | |||
A | 45.0% | |||
BBB | 18.1% | |||
BB | 4.8% | |||
B | 1.1% | |||
Not Rated | 5.1% | |||
Cash & Other | 0.3% |
Portfolio facts (i) | ||||
Average Duration (d) | 8.8 | |||
Average Effective Maturity (m) | 17.2 yrs. | |||
Jurisdiction (i) | ||||
California | 95.8% | |||
Illinois | 1.1% | |||
Guam | 0.8% | |||
Pennsylvania | 0.6% | |||
Puerto Rico | 0.6% | |||
Ohio | 0.5% | |||
New Jersey | 0.3% |
(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. 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, including fixed income futures contracts, which have not been rated by any rating agency. The fund may not hold all of these instruments. 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 market 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 market value. The bond component will include any accrued interest amounts. |
(m) | In determining an 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. |
Where the fund holds convertible bonds, these are treated as part of the equity portion of the portfolio.
Cash & Other includes cash, other assets less liabilities, offsets to derivative positions, and short-term securities.
Percentages are based on net assets as of 3/31/14.
The portfolio is actively managed and current holdings may be different.
4
Table of Contents
Portfolio Composition – continued
MFS Georgia Municipal Bond Fund
Portfolio structure (i)
Top five industries (i) | ||||
Universities – Colleges | 18.6% | |||
Healthcare Revenue – Hospitals | 18.0% | |||
Water & Sewer Utility Revenue | 16.3% | |||
General Obligations – General Purpose | 6.3% | |||
General Obligations – Schools | 6.0% |
Composition including fixed income credit quality (a)(i) | ||||
AAA | 10.1% | |||
AA | 36.3% | |||
A | 37.8% | |||
BBB | 11.0% | |||
BB | 2.0% | |||
B | 0.5% | |||
Not Rated | 1.3% | |||
Cash & Other | 1.0% |
Portfolio facts (i) | ||||
Average Duration (d) | 8.6 | |||
Average Effective Maturity (m) | 17.0 yrs. | |||
Jurisdiction (i) | ||||
Georgia | 81.7% | |||
New York | 1.7% | |||
Guam | 1.6% | |||
California | 1.5% | |||
Florida | 1.5% | |||
Puerto Rico | 1.4% | |||
New Jersey | 1.4% | |||
Illinois | 1.3% | |||
Tennessee | 0.9% | |||
U.S. Virgin Islands | 0.8% | |||
Wisconsin | 0.7% | |||
North Carolina | 0.7% | |||
Kentucky | 0.6% | |||
New Hampshire | 0.6% | |||
Virginia | 0.5% | |||
Colorado | 0.5% | |||
Louisiana | 0.5% | |||
Texas | 0.5% | |||
Indiana | 0.3% | |||
Michigan | 0.3% |
(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. 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, including fixed income futures contracts, which have not been rated by any rating agency. The fund may not hold all of these instruments. 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 market 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 market value. The bond component will include any accrued interest amounts. |
(m) | In determining an 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. |
Where the fund holds convertible bonds, these are treated as part of the equity portion of the portfolio.
Cash & Other includes cash, other assets less liabilities, offsets to derivative positions, and short-term securities.
Percentages are based on net assets as of 3/31/14.
The portfolio is actively managed and current holdings may be different.
5
Table of Contents
Portfolio Composition – continued
MFS Maryland Municipal Bond Fund
Portfolio structure (i)
Top five industries (i) | ||||
Healthcare Revenue – Hospitals | 23.0% | |||
General Obligations – General Purpose | 16.6% | |||
Water & Sewer Utility Revenue | 10.2% | |||
Universities – Colleges | 7.3% | |||
Multi-Family Housing Revenue | 4.1% |
Composition including fixed income credit quality (a)(i) | ||||
AAA | 16.4% | |||
AA | 24.7% | |||
A | 26.9% | |||
BBB | 21.1% | |||
BB | 2.8% | |||
B | 0.9% | |||
Not Rated | 5.3% | |||
Cash & Other | 1.9% |
Portfolio facts (i) | ||||
Average Duration (d) | 8.1 | |||
Average Effective Maturity (m) | 16.4 yrs. | |||
Jurisdiction (i) | ||||
Maryland | 79.2% | |||
Puerto Rico | 2.6% | |||
New Jersey | 1.9% | |||
Kentucky | 1.8% | |||
District of Columbia | 1.5% | |||
Tennessee | 1.4% | |||
California | 1.2% | |||
Illinois | 1.1% | |||
Guam | 1.1% | |||
U.S. Virgin Islands | 1.1% | |||
Indiana | 0.9% | |||
Florida | 0.8% | |||
Texas | 0.8% | |||
New York | 0.7% | |||
New Hampshire | 0.6% | |||
Colorado | 0.5% | |||
Washington | 0.4% | |||
Michigan | 0.3% | |||
Massachusetts | 0.1% | |||
Mississippi | 0.1% |
(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. 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, including fixed income futures contracts, which have not been rated by any rating agency. The fund may not hold all of these instruments. 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 market 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 market value. The bond component will include any accrued interest amounts. |
(m) | In determining an 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. |
Where the fund holds convertible bonds, these are treated as part of the equity portion of the portfolio.
Cash & Other includes cash, other assets less liabilities, offsets to derivative positions, and short-term securities.
Percentages are based on net assets as of 3/31/14.
The portfolio is actively managed and current holdings may be different.
6
Table of Contents
Portfolio Composition – continued
MFS Massachusetts Municipal Bond Fund
Portfolio structure (i)
Top five industries (i) | ||||
Universities – Colleges | 21.1% | |||
Healthcare Revenue – Hospitals | 11.9% | |||
General Obligations – General Purpose | 9.3% | |||
Miscellaneous Revenue – Other | 8.2% | |||
Multi-Family Housing Revenue | 7.0% |
Composition including fixed income credit quality (a)(i) | ||||
AAA | 12.9% | |||
AA | 40.4% | |||
A | 24.3% | |||
BBB | 15.3% | |||
BB | 3.4% | |||
B | 1.4% | |||
Not Rated | 2.1% | |||
Cash & Other | 0.2% |
Portfolio facts (i) | ||||
Average Duration (d) | 9.1 | |||
Average Effective Maturity (m) | 16.8 yrs. | |||
Jurisdiction (i) | ||||
Massachusetts | 85.8% | |||
Illinois | 1.6% | |||
Puerto Rico | 1.4% | |||
Kentucky | 1.3% | |||
New Jersey | 1.1% | |||
Guam | 1.1% | |||
Tennessee | 1.0% | |||
New York | 1.0% | |||
Florida | 0.9% | |||
California | 0.9% | |||
Wisconsin | 0.7% | |||
Texas | 0.7% | |||
Louisiana | 0.5% | |||
Colorado | 0.4% | |||
Pennsylvania | 0.4% | |||
New Hampshire | 0.3% | |||
U.S. Virgin Islands | 0.3% | |||
Washington | 0.3% | |||
Ohio | 0.1% |
(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. 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, including fixed income futures contracts, which have not been rated by any rating agency. The fund may not hold all of these instruments. 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 market 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 market value. The bond component will include any accrued interest amounts. |
(m) | In determining an 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. |
Where the fund holds convertible bonds, these are treated as part of the equity portion of the portfolio.
Cash & Other includes cash, other assets less liabilities, offsets to derivative positions, and short-term securities.
Percentages are based on net assets as of 3/31/14.
The portfolio is actively managed and current holdings may be different.
7
Table of Contents
Summary of Results
For the twelve months ended March 31, 2014, Class A shares of each fund, at net asset value, underperformed the Barclays Municipal Bond Index. These included the municipal bond funds of Alabama, Arkansas, California, Georgia, Maryland, and Massachusetts. The performance for the individual funds and the benchmark are set forth in the Performance Summary.
Market Environment
Early in the period, jitters over a banking crisis in Cyprus was more than offset by ongoing accommodative global monetary policy and improving economic data, resulting in gains in both equity and fixed income markets. As the period progressed, concerns that the US Federal Reserve (“Fed”) would begin tapering its quantitative easing (“QE”) program caused sovereign bond yields to spike, credit spreads to widen, and equity valuations to fall. Equities subsequently outperformed fixed income in response to the improved economic fundamentals.
Toward the middle of the period, the Fed’s decision to postpone QE tapering surprised markets. Favorable market reactions were tempered, however, by tense negotiations over US fiscal policy which resulted in a 16-day partial shutdown of the federal government and a short-term extension in the debt ceiling. The volatility was short-lived, however, as an extension of budget and debt ceiling deadlines allowed the government to re-open, and subsequent economic data reflected moderate but resilient US growth. Also well-received was the decision by the European Central Bank to cut its policy rate as inflation pressures waned in the region. In addition, equity investors appeared to have concluded that there would be no major change in US monetary policy as a result of the nomination of Janet Yellen as the new Fed Chair for a term beginning in early 2014.
Later in the period, emerging market stresses resurfaced as political unrest, an escalation of tensions due to Russia’s annexation of a portion of the Ukraine, falling currencies and slowing growth appeared to have impacted investor sentiment. Markets were also forced to contend with some unexpected weakness in the US economy due largely to weather-related interruptions to hiring and spending plans as well as production schedules. Once again, the setback was short-lived as the major US equity indexes traded near their all-time highs by the end of the period.
Over the twelve months ended March 31, 2014, municipal bond yields generally increased as fixed income market activity was led by the Fed’s signal last June 2013 that it would begin to reduce monthly purchases of US Treasury and mortgage-backed securities; the reduction in the size of the purchase program actually began in December 2013, when 10-year US Treasury yields peaked at 3%. Municipal bond prices fell accordingly during this time frame after the Fed announced it might taper asset purchases. The rise in municipal bond yields was more pronounced in the long end of the yield curve (y) relative to intermediate-term bonds as municipal bond mutual fund redemptions, as well as reduced liquidity, lessened the demand for longer maturity bonds.
Further, more flames were fanned by credit concerns, first by Detroit’s Chapter 9 filing in July, and then by increased scrutiny of Puerto Rico’s weakened fiscal position in late August. Since January 2014, municipal market supply/demand dynamics have improved enough to enable municipal bonds to rally as retail investors and hedge funds emerged as the market’s primary source of demand. The supply/demand dynamics were further supported by a reduced level of issuance during Q1 2014 as well as a more stable trend in mutual fund flows.
With the risks of a restructuring of Puerto Rico debt deferred after the Commonwealth successfully issued a $3.5 billion General Obligation bond deal, concerns regarding negative headline risk in the municipal market have also waned for the time being.
Factors Affecting Performance
The funds’ longer duration (d) stance relative to the Barclays Municipal Bond Index negatively impacted relative performance as credit concerns in the municipal bond markets and the threat of Fed tapering forced yields higher during the reporting period.
The Barclays Municipal Bond Index is a broad-based index comprised of municipal bonds issued within the 50 states and the District of Columbia as well as U.S. territories and possessions such as Guam, Puerto Rico, and the Virgin Islands.
Among jurisdictions, overweight positions in municipal bonds of Puerto Rico were a primary source of underperformance across all funds given heightened concern over the US territory’s financial difficulties during the period. Underweight positions in municipal bonds of California detracted from relative returns in all funds, with the exception of the California Fund where it had an overweight position and an immaterial impact.
Across sectors, the utilities sector was a notable detractor from the relative performance of all funds. The general obligation sector weakened relative returns across all funds, with the exception of the California and Georgia funds, where it had an immaterial impact. The sales/excise tax sector was another negative factor for relative performance in all funds, with the exception of the Alabama fund, where it had a minimal impact on relative results. An overweight allocation to “BB” and “BBB” rated (r) securities also dampened relative performance across all funds, with the exception of the California fund, where “BBB” rated securities benefited relative returns.
Respectfully,
Michael Dawson
Portfolio Manager
8
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Management Review – continued
(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) | Bonds rated “BBB”, “Baa”, or higher are considered investment grade; bonds rated “BB”, “Ba”, or below are considered non-investment grade. The sources for bond quality ratings are Moody’s Investors Service, Standard & Poor’s and Fitch, Inc. and are applied using 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 and Fitch scale (e.g., AAA). For securities which are not rated by any of the three 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. |
The views expressed in this report are those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily reflect the views of MFS or any other person in the MFS organization. These views are subject to change at any time based on market or other conditions, and MFS disclaims any responsibility to update such views. These views may not be relied upon as investment advice or an indication of trading intent on behalf of any MFS portfolio. References to specific securities are not recommendations of such securities, and may not be representative of any MFS portfolio’s current or future investments.
9
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PERFORMANCE SUMMARY THROUGH 3/31/14
The following charts illustrate a representative class of each fund’s historical performance in comparison to its benchmark(s). Performance results include the deduction of the maximum applicable sales charge and reflect the percentage change in net asset value, including reinvestment of dividends and capital gains distributions. Each fund's results have been compared to the Barclays Municipal Bond Index, a market capitalization-weighted index that measures the performance of the tax-exempt bond market. However, while this index is considered the benchmark for the performance of municipal bond funds, it is comprised of municipal bonds issued nationwide, while each of the funds is limited to investing primarily in the bonds of a particular state. The performance of other share classes will be greater than or less than that of the class depicted below. Benchmarks are unmanaged and may not be invested in directly. Benchmark returns do not reflect sales charges, commissions or expenses. (See Notes to Performance Summary.)
Performance data shown represents past performance and is no guarantee of future results. Investment return and principal value fluctuate so your shares, when sold, may be worth more or less than the original cost; current performance may be lower or higher than quoted. The performance shown does not reflect the deduction of taxes, if any, that a shareholder would pay on fund distributions or the redemption of fund shares.
MFS Alabama Municipal Bond Fund
Growth of a Hypothetical $10,000 Investment
Total Returns through 3/31/14
Average annual without sales charge
Share Class | Class inception date | 1-yr | 5-yr | 10-yr | ||||||||
A | 2/01/90 | (1.83)% | 5.25% | 3.75% | ||||||||
B | 9/07/93 | (2.56)% | 4.47% | 2.98% | ||||||||
Comparative benchmark | ||||||||||||
Barclays Municipal Bond Index (f) | 0.39% | 5.71% | 4.45% | |||||||||
Average annual with sales charge | ||||||||||||
A With Initial Sales Charge (4.75%) | (6.49)% | 4.23% | 3.25% | |||||||||
B With CDSC (Declining over six years from 4% to 0%) (v) | (6.34)% | 4.13% | 2.98% |
CDSC – Contingent Deferred Sales Charge.
(f) | Source: FactSet Research Systems Inc. |
(v) | Assuming redemption at the end of the applicable period. |
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Performance Summary – continued
MFS Arkansas Municipal Bond Fund
Growth of a Hypothetical $10,000 Investment
Total Returns through 3/31/14
Average annual without sales charge
Share Class | Class inception date | 1-yr | 5-yr | 10-yr | ||||||||
A | 2/03/92 | (2.32)% | 4.39% | 3.59% | ||||||||
B | 9/07/93 | (3.06)% | 3.57% | 2.79% | ||||||||
Comparative benchmark | ||||||||||||
Barclays Municipal Bond Index (f) | 0.39% | 5.71% | 4.45% | |||||||||
Average annual with sales charge | ||||||||||||
A With Initial Sales Charge (4.75%) | (6.96)% | 3.38% | 3.09% | |||||||||
B With CDSC (Declining over six years from 4% to 0%) (v) | (6.83)% | 3.22% | 2.79% |
CDSC – Contingent Deferred Sales Charge.
(f) | Source: FactSet Research Systems Inc. |
(v) | Assuming redemption at the end of the applicable period. |
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Performance Summary – continued
MFS California Municipal Bond Fund
Growth of a Hypothetical $10,000 Investment
Total Returns through 3/31/14
Average annual without sales charge
Share Class | Class inception date | 1-yr | 5-yr | 10-yr | ||||||||
A | 6/18/85 | (1.20)% | 6.64% | 4.16% | ||||||||
B | 9/07/93 | (1.96)% | 5.83% | 3.38% | ||||||||
C | 1/03/94 | (2.08)% | 5.70% | 3.22% | ||||||||
Comparative benchmark | ||||||||||||
Barclays Municipal Bond Index (f) | 0.39% | 5.71% | 4.45% | |||||||||
Average annual with sales charge | ||||||||||||
A With Initial Sales Charge (4.75%) | (5.89)% | 5.61% | 3.66% | |||||||||
B With CDSC (Declining over six years from 4% to 0%) (v) | (5.75)% | 5.51% | 3.38% | |||||||||
C With CDSC (1% for 12 months) (v) | (3.03)% | 5.70% | 3.22% |
CDSC – Contingent Deferred Sales Charge.
(f) | Source: FactSet Research Systems Inc. |
(v) | Assuming redemption at the end of the applicable period. |
12
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Performance Summary – continued
MFS Georgia Municipal Bond Fund
Growth of a Hypothetical $10,000 Investment
Total Returns through 3/31/14
Average annual without sales charge
Share Class | Class inception date | 1-yr | 5-yr | 10-yr | ||||||||
A | 6/06/88 | (2.09)% | 5.08% | 3.71% | ||||||||
B | 9/07/93 | (2.81)% | 4.30% | 2.96% | ||||||||
Comparative benchmark | ||||||||||||
Barclays Municipal Bond Index (f) | 0.39% | 5.71% | 4.45% | |||||||||
Average annual with sales charge | ||||||||||||
A With Initial Sales Charge (4.75%) | (6.74)% | 4.06% | 3.21% | |||||||||
B With CDSC (Declining over six years from 4% to 0%) (v) | (6.60)% | 3.96% | 2.96% |
CDSC – Contingent Deferred Sales Charge.
(f) | Source: FactSet Research Systems Inc. |
(v) | Assuming redemption at the end of the applicable period. |
13
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Performance Summary – continued
MFS Maryland Municipal Bond Fund
Growth of a Hypothetical $10,000 Investment
Total Returns through 3/31/14
Average annual without sales charge
Share Class | Class inception date | 1-yr | 5-yr | 10-yr | ||||||||
A | 10/31/84 | (2.66)% | 5.27% | 3.50% | ||||||||
B | 9/07/93 | (3.47)% | 4.49% | 2.77% | ||||||||
Comparative benchmark | ||||||||||||
Barclays Municipal Bond Index (f) | 0.39% | 5.71% | 4.45% | |||||||||
Average annual with sales charge | ||||||||||||
A With Initial Sales Charge (4.75%) | (7.28)% | 4.25% | 2.99% | |||||||||
B With CDSC (Declining over six years from 4% to 0%) (v) | (7.22)% | 4.15% | 2.77% |
CDSC – Contingent Deferred Sales Charge.
(f) | Source: FactSet Research Systems Inc. |
(v) | Assuming redemption at the end of the applicable period. |
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Performance Summary – continued
MFS Massachusetts Municipal Bond Fund
Growth of a Hypothetical $10,000 Investment
Total Returns through 3/31/14
Average annual without sales charge
Share Class | Class inception date | 1-yr | 5-yr | 10-yr | ||||||||
A | 4/09/85 | (2.85)% | 5.29% | 3.90% | ||||||||
B | 9/07/93 | (3.59)% | 4.49% | 3.17% | ||||||||
Comparative benchmark | ||||||||||||
Barclays Municipal Bond Index (f) | 0.39% | 5.71% | 4.45% | |||||||||
Average annual with sales charge | ||||||||||||
A With Initial Sales Charge (4.75%) | (7.46)% | 4.27% | 3.40% | |||||||||
B With CDSC (Declining over six years from 4% to 0%) (v) | (7.33)% | 4.15% | 3.17% |
CDSC – Contingent Deferred Sales Charge.
(f) | Source: FactSet Research Systems Inc. |
(v) | Assuming redemption at the end of the applicable period. |
Benchmark Definition
Barclays Municipal Bond Index – a market capitalization-weighted index that measures the performance of the tax-exempt bond market.
It is not possible to invest directly in an index.
Notes to Performance Summary
Average annual total return represents the average annual change in value for each share class for the periods presented.
Performance results reflect any applicable expense subsidies and waivers in effect during the periods shown. Without such subsidies and waivers each fund’s performance results would be less favorable. Please see the prospectus and financial statements for complete details.
Performance results do not include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles and may differ from amounts reported in the financial highlights.
A portion of income may be subject to state, federal, and/or alternative minimum tax. Capital gains, if any, are subject to a capital gains tax.
From time to time the funds may receive proceeds from litigation settlements, without which performance would be lower.
15
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Fund expenses borne by the shareholders during the period, October 1, 2013 through March 31, 2014
As a shareholder of the funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on certain purchase or redemption payments, and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the funds and to compare these costs with the ongoing costs of investing in other mutual funds.
These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period October 1, 2013 through March 31, 2014.
Actual expenses
The first line for each share class in the following tables provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The second line for each share class in the following tables provides information about hypothetical account values and hypothetical expenses based on each fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in each fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line for each share class in the tables is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
MFS ALABAMA MUNICIPAL BOND FUND
Share Class | Annualized Expense Ratio | Beginning Account Value 10/01/13 | Ending Account Value 3/31/14 | Expenses Paid During Period (p) 10/01/13-3/31/14 | ||||||||||||||
A | Actual | 0.93% | $1,000.00 | $1,032.45 | $4.71 | |||||||||||||
Hypothetical (h) | 0.93% | $1,000.00 | $1,020.29 | $4.68 | ||||||||||||||
B | Actual | 1.68% | $1,000.00 | $1,028.62 | $8.50 | |||||||||||||
Hypothetical (h) | 1.68% | $1,000.00 | $1,016.55 | $8.45 |
MFS ARKANSAS MUNICIPAL BOND FUND
Share Class | Annualized Expense Ratio | Beginning Account Value 10/01/13 | Ending Account Value 3/31/14 | Expenses Paid During Period (p) 10/01/13-3/31/14 | ||||||||||||||
A | Actual | 0.76% | $1,000.00 | $1,029.41 | $3.85 | |||||||||||||
Hypothetical (h) | 0.76% | $1,000.00 | $1,021.14 | $3.83 | ||||||||||||||
B | Actual | 1.52% | $1,000.00 | $1,026.61 | $7.68 | |||||||||||||
Hypothetical (h) | 1.52% | $1,000.00 | $1,017.35 | $7.64 |
(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 182/365 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
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Expense Tables – continued
MFS CALIFORNIA MUNICIPAL BOND FUND
Share Class | Annualized Expense Ratio | Beginning Account Value 10/01/13 | Ending Account Value 3/31/14 | Expenses Paid During Period (p) 10/01/13-3/31/14 | ||||||||||||||
A | Actual | 0.72% | $1,000.00 | $1,046.08 | $3.67 | |||||||||||||
Hypothetical (h) | 0.72% | $1,000.00 | $1,021.34 | $3.63 | ||||||||||||||
B | Actual | 1.49% | $1,000.00 | $1,040.24 | $7.58 | |||||||||||||
Hypothetical (h) | 1.49% | $1,000.00 | $1,017.50 | $7.49 | ||||||||||||||
C | Actual | 1.62% | $1,000.00 | $1,041.25 | $8.24 | |||||||||||||
Hypothetical (h) | 1.62% | $1,000.00 | $1,016.85 | $8.15 |
MFS GEORGIA MUNICIPAL BOND FUND
Share Class | Annualized Expense Ratio | Beginning Account Value 10/01/13 | Ending Account Value 3/31/14 | Expenses Paid During Period (p) 10/01/13-3/31/14 | ||||||||||||||
A | Actual | 0.95% | $1,000.00 | $1,035.01 | $4.82 | |||||||||||||
Hypothetical (h) | 0.95% | $1,000.00 | $1,020.19 | $4.78 | ||||||||||||||
B | Actual | 1.70% | $1,000.00 | $1,031.02 | $8.61 | |||||||||||||
Hypothetical (h) | 1.70% | $1,000.00 | $1,016.45 | $8.55 |
MFS MARYLAND MUNICIPAL BOND FUND
Share Class | Annualized Expense Ratio | Beginning Account Value 10/01/13 | Ending Account Value 3/31/14 | Expenses Paid During Period (p) 10/01/13-3/31/14 | ||||||||||||||
A | Actual | 0.95% | $1,000.00 | $1,029.25 | $4.81 | |||||||||||||
Hypothetical (h) | 0.95% | $1,000.00 | $1,020.19 | $4.78 | ||||||||||||||
B | Actual | 1.70% | $1,000.00 | $1,024.49 | $8.58 | |||||||||||||
Hypothetical (h) | 1.70% | $1,000.00 | $1,016.45 | $8.55 |
MFS MASSACHUSETTS MUNICIPAL BOND FUND
Share Class | Annualized Expense Ratio | Beginning Account Value 10/01/13 | Ending Account Value 3/31/14 | Expenses Paid During Period (p) 10/01/13-3/31/14 | ||||||||||||||
A | Actual | 0.83% | $1,000.00 | $1,034.59 | $4.21 | |||||||||||||
Hypothetical (h) | 0.83% | $1,000.00 | $1,020.79 | $4.18 | ||||||||||||||
B | Actual | 1.59% | $1,000.00 | $1,030.61 | $8.05 | |||||||||||||
Hypothetical (h) | 1.59% | $1,000.00 | $1,017.00 | $8.00 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
Notes to Expense Table
For the MFS Massachusetts Municipal Bond Fund, each class with a Rule 12b-1 service fee is subject to a rebate of a portion of such fee. Such rebates are included in the expense ratios above. For Class A shares, this rebate reduced the expense ratio above by 0.02%. See Note 3 in the Notes to Financial Statements for additional information.
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3/31/14
MFS ALABAMA MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
Municipal Bonds - 95.4% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 2.0% | ||||||||
Birmingham, AL, Airport Authority Rev., AGM, 5.25%, 7/01/30 | $ | 1,000,000 | $ | 1,094,990 | ||||
General Obligations - General Purpose - 11.3% | ||||||||
Auburn, AL, Sewer Rev., “H”, 5.625%, 12/01/33 | $ | 1,000,000 | $ | 1,128,660 | ||||
Boaz, AL, School Warrants, “A”, SYNCORA, 5%, 7/01/14 (c) | 650,000 | 657,618 | ||||||
Enterprise, AL, School Warrants, ASSD GTY, 5%, 2/01/29 | 250,000 | 262,407 | ||||||
Guam Government, “A”, 6.75%, 11/15/29 | 260,000 | 275,374 | ||||||
Guam Government, “A”, 7%, 11/15/39 | 60,000 | 63,551 | ||||||
Huntsville, AL, School Warrants, “C”, 5%, 11/01/30 | 1,000,000 | 1,135,090 | ||||||
Madison, AL, Refunding Warrants, 5.15%, 2/01/39 | 1,000,000 | 1,064,430 | ||||||
Memphis, TN, Refunding General Improvement, “B”, 5%, 4/01/31 | 70,000 | 78,854 | ||||||
Montgomery County, AL, Warrants, SYNCORA, 5%, 3/01/28 | 500,000 | 536,915 | ||||||
State of California, 6%, 11/01/39 | 550,000 | 644,320 | ||||||
State of Illinois, 5.5%, 7/01/33 | 55,000 | 59,464 | ||||||
State of Illinois, 5.5%, 7/01/38 | 160,000 | 171,605 | ||||||
$ | 6,078,288 | |||||||
General Obligations - Schools - 12.0% | ||||||||
Huntsville, AL, School Warrants, “B”, 5%, 9/01/29 | $ | 500,000 | $ | 553,875 | ||||
Huntsville, AL, School Warrants, “C”, 5%, 11/01/22 | 500,000 | 594,685 | ||||||
Jefferson County, AL, School Warrants, AGM, 5.5%, 2/15/20 | 1,750,000 | 1,750,158 | ||||||
Lee County, AL, School Warrants, ASSD GTY, 4.75%, 2/01/29 | 880,000 | 938,546 | ||||||
Madison County, AL, Board of Education, ASSD GTY, 5.125%, 9/01/34 | 1,000,000 | 1,070,920 | ||||||
Shelby County, AL, Board of Education Capital Outlay School Warrants (Ten Mill County Tax), 5%, 2/01/31 | 500,000 | 540,760 | ||||||
Sumter County, AL, School Warrants, 5.2%, 2/01/39 | 1,000,000 | 1,019,140 | ||||||
$ | 6,468,084 | |||||||
Healthcare Revenue - Hospitals - 20.4% | ||||||||
Alabama Special Care Facilities Financing Authority (Daughters of Charity), ETM, AMBAC, 5%, 11/01/25 (c) | $ | 1,500,000 | $ | 1,504,515 | ||||
Alabama Special Care Facilities Financing Authority Rev. (Ascension Health), BHAC, 5%, 11/15/39 | 750,000 | 781,305 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Alexander City, AL, Special Care Facilities Financing Authority Medical Facilities Rev., “A” (Russell Hospital Corp.), 5.75%, 12/01/36 | $ | 500,000 | $ | 488,815 | ||||
Birmingham, AL, Special Care Facilities Financing Authority Health Care Rev. (Children’s Hospital), ASSD GTY, 6%, 6/01/39 | 750,000 | 839,295 | ||||||
Brazoria County, TX, Health Facilities Development Corp., Hospital Rev. (Brazosport Regional Health System), 5.25%, 7/01/32 | 165,000 | 153,796 | ||||||
Cullman County, AL, Health Care Authority (Cullman Regional Medical Center), “A”, 7%, 2/01/36 | 300,000 | 320,655 | ||||||
East Alabama Health Care Authority, Health Care Facilities Rev., 5.25%, 9/01/36 (b) | 1,000,000 | 1,116,820 | ||||||
Escambia County, FL, Health Facilities Authority (Baptist Hospital, Inc.), “A”, 6%, 8/15/36 | 435,000 | 460,869 | ||||||
Health Care Authority for Baptist Health, AL, “D”, 5%, 11/15/21 | 875,000 | 895,702 | ||||||
Huntsville, AL, Health Care Authority Rev., “A”, 5%, 6/01/30 | 1,000,000 | 1,025,500 | ||||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 7%, 8/15/44 | 255,000 | 279,228 | ||||||
Louisville & Jefferson County, KY, Metropolitan Government Healthcare Systems Rev. (Norton Healthcare, Inc.), 5.25%, 10/01/36 | 265,000 | 267,647 | ||||||
Mobile, AL, Special Care Facilities Financing Authority Rev. (Infirmary Health System, Inc.), “A”, 5.25%, 2/01/30 | 500,000 | 508,995 | ||||||
Montgomery, AL, Medical Clinic Board Health Care Facility Rev. (Jackson Hospital & Clinic), 5.25%, 3/01/31 | 500,000 | 502,590 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6%, 10/01/27 | 370,000 | 397,495 | ||||||
University of Alabama at Birmingham, AL, Hospital Rev., “A”, 5.25%, 9/01/25 | 500,000 | 547,445 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (ProHealth Care, Inc. Obligated Group), 6.625%, 2/15/39 | 505,000 | 560,474 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (Wheaton Franciscan Healthcare), 5.25%, 8/15/31 | 340,000 | 347,562 | ||||||
$ | 10,998,708 | |||||||
Healthcare Revenue - Long Term Care - 1.4% | ||||||||
Pell City, AL, Special Care Facilities, Financing Authority Rev. (Noland Health Services, Inc.), 5%, 12/01/39 | $ | 750,000 | $ | 755,745 |
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Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Industrial Revenue - Paper - 2.2% | ||||||||
Butler, AL, Industrial Development Board, Solid Waste Disposal Rev. (Georgia-Pacific Corp.), 5.75%, 9/01/28 | $ | 200,000 | $ | 203,042 | ||||
Phenix City, AL, Industrial Development Board Environmental Improvement Rev. (MeadWestvaco Coated Board Project), “A”, 4.125%, 5/15/35 | 500,000 | 413,090 | ||||||
Selma, AL, Industrial Development Board Rev., Gulf Opportunity Zone (International Paper Co.), “A”, 6.25%, 11/01/33 | 250,000 | 270,335 | ||||||
Selma, AL, Industrial Development Board Rev., Gulf Opportunity Zone (International Paper Co.), “A”, 5.375%, 12/01/35 | 300,000 | 308,991 | ||||||
$ | 1,195,458 | |||||||
Miscellaneous Revenue - Other - 1.3% | ||||||||
Indiana Finance Authority Rev., (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/40 | $ | 65,000 | $ | 64,901 | ||||
Indiana Finance Authority Rev., (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/44 | 95,000 | 93,680 | ||||||
New York Liberty Development Corp. Liberty Rev., (7 World Trade Center Project), 5%, 9/15/40 | 495,000 | 530,155 | ||||||
$ | 688,736 | |||||||
Port Revenue - 1.0% | ||||||||
Alabama Port Authority Docks Facility, 6%, 10/01/40 | $ | 500,000 | $ | 559,730 | ||||
Sales & Excise Tax Revenue - 2.1% | ||||||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6%, 1/15/41 | $ | 325,000 | $ | 341,773 | ||||
Massachusetts Bay Transportation Authority, Sales Tax Rev., “A”, 5%, 7/01/31 | 515,000 | 598,322 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “C”, 5%, 8/01/40 | 205,000 | 168,006 | ||||||
$ | 1,108,101 | |||||||
Single Family Housing - State - 0.8% | ||||||||
Alabama Housing Finance Authority, Single Family Mortgage Rev., “B”, GNMA, 5.375%, 10/01/33 | $ | 440,000 | $ | 456,535 | ||||
State & Local Agencies - 9.9% | ||||||||
Alabama Incentives Financing Authority Special Obligation, “A”, 5%, 9/01/29 | $ | 1,000,000 | $ | 1,073,330 | ||||
Alabama Public School & College Authority Rev., “A”, 5%, 5/01/29 (c) | 1,000,000 | 1,180,690 | ||||||
Alabama Public School & College Authority Rev., “B”, 5%, 6/01/25 | 800,000 | 930,088 | ||||||
Alabama Public School & College Authority Rev., “C”, 5%, 9/01/22 | 400,000 | 474,424 |
Issuer | Shares/Par | Value ($) | ||||||
State & Local Agencies - continued | ||||||||
Anniston, AL, Public Building Authority Rev. (Judicial Center Project), AGM, 5%, 3/01/32 | $ | 500,000 | $ | 546,315 | ||||
Bessemer, AL, Public Educational Building Authority Rev. (DHR Building Project), “A”, ASSD GTY, 5%, 7/01/30 | 385,000 | 418,021 | ||||||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., Enhanced, “A”, 5%, 6/01/30 | 35,000 | 37,136 | ||||||
Los Angeles, CA, Municipal Improvement Corp. Lease Rev. (Real Property), “E”, 6%, 9/01/39 | 145,000 | 163,715 | ||||||
Massachusetts College Building Authority Rev., “A”, 5%, 5/01/31 | 65,000 | 72,955 | ||||||
Massachusetts College Building Authority Rev., “C”, 3%, 5/01/42 | 225,000 | 165,044 | ||||||
New York Tobacco Settlement Financing Corp., Asset-Backed Rev., “B”, 5%, 6/01/21 | 155,000 | 167,388 | ||||||
University of Kentucky, General Receipts, “A”, 5%, 4/01/36 | 35,000 | 38,680 | ||||||
University of Kentucky, General Receipts, “A”, 5%, 4/01/37 | 65,000 | 71,607 | ||||||
$ | 5,339,393 | |||||||
Tax - Other - 1.7% | ||||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/24 | $ | 95,000 | $ | 100,370 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/29 | 30,000 | 31,393 | ||||||
Virgin Islands Public Finance Authority Rev., “A-1”, 5%, 10/01/29 | 65,000 | 66,598 | ||||||
Virgin Islands Public Finance Authority Rev., “B”, 5%, 10/01/25 | 65,000 | 68,539 | ||||||
Virgin Islands Public Finance Authority Rev., Matching Fund Loan Note, “A”, 5%, 10/01/29 | 400,000 | 411,380 | ||||||
Virgin Islands Public Finance Authority Rev., Matching Fund Loan Note, “A”, 6%, 10/01/39 | 235,000 | 236,633 | ||||||
$ | 914,913 | |||||||
Tobacco - 0.5% | ||||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 5%, 6/01/41 | $ | 90,000 | $ | 67,720 | ||||
New Jersey Tobacco Settlement Financing Corp., Capital Appreciation, “1-B”, 0%, 6/01/41 | 730,000 | 175,974 | ||||||
New Jersey Tobacco Settlement Financing Corp., Capital Appreciation, “1-C”, 0%, 6/01/41 | 10,000 | 2,373 | ||||||
$ | 246,067 | |||||||
Toll Roads - 1.2% | ||||||||
Triborough Bridge & Tunnel Authority Rev., NY, Capital Appreciation, “A”, 0%, 11/15/29 | $ | 280,000 | $ | 144,015 | ||||
Triborough Bridge & Tunnel Authority Rev., NY, Capital Appreciation, “A”, 0%, 11/15/31 | 465,000 | 211,380 | ||||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 6%, 1/01/37 | 110,000 | 117,042 |
19
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Toll Roads - continued | ||||||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 5.5%, 1/01/42 | $ | 180,000 | $ | 183,809 | ||||
$ | 656,246 | |||||||
Universities - Colleges - 14.4% | ||||||||
Alabama State University Board of Education Rev. (Chattahoochee Valley Community College), ASSD GTY, 5%, 6/01/34 | $ | 1,300,000 | $ | 1,352,624 | ||||
Alabama State University Rev., General Tuition & Fee, ASSD GTY, 5.75%, 9/01/39 | 1,000,000 | 1,070,290 | ||||||
Auburn University, General Fee Rev., AMBAC, 5%, 6/01/29 (c) | 1,000,000 | 1,007,810 | ||||||
Jacksonville State University, Tuition & Fee Rev., ASSD GTY, 5.125%, 12/01/38 | 1,000,000 | 1,067,060 | ||||||
University of Alabama, General Rev., NATL, 5%, 7/01/34 | 1,000,000 | 1,006,100 | ||||||
University of Alabama, General Rev., “A”, NATL, 5%, 7/01/29 | 1,000,000 | 1,006,390 | ||||||
University of South Alabama, University Rev., AMBAC, 5%, 12/01/29 | 1,000,000 | 1,083,030 | ||||||
University of South Alabama, University Rev., BHAC, 5%, 8/01/38 | 150,000 | 155,235 | ||||||
$ | 7,748,539 | |||||||
Universities - Secondary Schools - 0.4% | ||||||||
La Vernia, TX, Higher Education Finance Corp. Rev. (Lifeschool of Dallas), “A”, 7.5%, 8/15/41 | $ | 190,000 | $ | 214,012 | ||||
Utilities - Investor Owned - 0.1% | ||||||||
Michigan Strategic Fund Ltd. Obligation Rev. (Detroit Edison Co.), 5.5%, 8/01/29 (b) | $ | 70,000 | $ | 76,803 | ||||
Utilities - Municipal Owned - 5.7% | ||||||||
Chatom, AL, Industrial Development Board Gulf Opportunity Zone (PowerSouth Energy), “A”, ASSD GTY, 5%, 8/01/37 | $ | 1,000,000 | $ | 1,063,990 |
Issuer | Shares/Par | Value ($) | ||||||
Utilities - Municipal Owned - continued | ||||||||
Foley, AL, Utilities Board Utilities Rev., AGM, 5%, 11/01/25 (c) | $ | 1,000,000 | $ | 1,075,570 | ||||
Long Island, NY, Power Authority, Electric Systems Rev., “A”, 6%, 5/01/33 | 130,000 | 146,736 | ||||||
Tuskegee, AL, Utilities Board, Utility Rev., 4.5%, 2/01/37 | 750,000 | 758,843 | ||||||
$ | 3,045,139 | |||||||
Utilities - Other - 0.6% | ||||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/19 | $ | 295,000 | $ | 331,521 | ||||
Water & Sewer Utility Revenue - 6.4% | ||||||||
Bessemer, AL, Governmental Utilities Services Corp. Water Supply Rev., ASSD GTY, 5%, 6/01/39 | $ | 1,000,000 | $ | 1,031,460 | ||||
Birmingham, AL, Waterworks Board Water Rev., “A”, ASSD GTY, 5.125%, 1/01/34 | 750,000 | 796,073 | ||||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 6%, 7/01/44 | 345,000 | 254,852 | ||||||
Jefferson County, AL, Sewer Rev. Warrants, Subordinate Lien, “D”, 5%, 10/01/21 | 300,000 | 323,085 | ||||||
Montgomery, AL, Waterworks & Sanitary Sewer Board Rev., AGM, 5%, 3/01/15 (c) | 1,000,000 | 1,044,330 | ||||||
$ | 3,449,800 | |||||||
Total Municipal Bonds (Identified Cost, $48,876,645) |
| $ | 51,426,808 | |||||
Money Market Funds - 1.8% | ||||||||
MFS Institutional Money Market Portfolio, 0.09%, at Cost and Net Asset Value (v) | 977,768 | $ | 977,768 | |||||
Total Investments (Identified Cost, $49,854,413) |
| $ | 52,404,576 | |||||
Other Assets, Less Liabilities - 2.8% | 1,504,592 | |||||||
Net Assets - 100.0% | $ | 53,909,168 |
See Portfolio Footnotes and Notes to Financial Statements
20
Table of Contents
PORTFOLIO OF INVESTMENTS
3/31/14
MFS ARKANSAS MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
Municipal Bonds - 98.8% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
General Obligations - General Purpose - 6.6% | ||||||||
Arkansas College Savings, Capital Appreciation, “A”, ETM, 0%, 6/01/17 (c) | $ | 1,840,000 | $ | 1,783,438 | ||||
Arkansas Federal Highway Grant Anticipation & Tax Rev., 5%, 4/01/20 | 2,000,000 | 2,367,120 | ||||||
Arkansas Federal Highway Grant Anticipation & Tax Rev., 5%, 4/01/21 | 2,000,000 | 2,378,320 | ||||||
Arkansas Four-Lane Highway Construction & Improvement, 4%, 6/15/20 | 2,000,000 | 2,255,740 | ||||||
Guam Government, “A”, 6.75%, 11/15/29 | 515,000 | 545,452 | ||||||
Guam Government, “A”, 5.25%, 11/15/37 | 255,000 | 231,594 | ||||||
Guam Government, “A”, 7%, 11/15/39 | 65,000 | 68,847 | ||||||
State of California, 5%, 11/01/21 | 750,000 | 883,793 | ||||||
State of California, 6%, 11/01/39 | 1,160,000 | 1,358,928 | ||||||
$ | 11,873,232 | |||||||
General Obligations - Schools - 9.3% | ||||||||
Arkansas College Savings, Capital Appreciation, “B”, ETM, 0%, 6/01/14 (c) | $ | 1,150,000 | $ | 1,149,540 | ||||
Arkansas College Savings, Capital Appreciation, “B”, ETM, 0%, 6/01/15 (c) | 1,100,000 | 1,095,545 | ||||||
Bentonville, AR, School District No. 6, “A”, 5%, 6/01/24 | 3,185,000 | 3,535,159 | ||||||
Crittenden County, AR, Community College District, 4.6%, 2/01/35 | 285,000 | 287,286 | ||||||
Crittenden County, AR, Community College District, 4.7%, 2/01/40 | 625,000 | 629,844 | ||||||
Crittenden County, AR, Community College District, 4%, 2/01/42 | 1,450,000 | 1,414,823 | ||||||
Northwest Arkansas Community College District, Capital Improvement, AMBAC, 5%, 5/15/28 | 1,380,000 | 1,401,514 | ||||||
Pulaski County, AR, North Little Rock School District, “B”, 5%, 2/01/22 | 1,000,000 | 1,146,070 | ||||||
Pulaski, AR, Special School District Construction, 5%, 2/01/35 | 2,000,000 | 2,008,800 | ||||||
Springdale, AR, School District No. 050, “A”, 4.625%, 6/01/37 | 2,000,000 | 2,054,620 | ||||||
Springdale, AR, School District No. 50, 3%, 6/01/29 | 910,000 | 865,055 | ||||||
Van Buren, AR, School District No. 42, 4.5%, 4/01/31 | 375,000 | 381,173 | ||||||
Van Buren, AR, School District No. 42, 4.625%, 4/01/33 | 745,000 | 753,992 | ||||||
$ | 16,723,421 | |||||||
Healthcare Revenue - Hospitals - 10.0% | ||||||||
Brazoria County, TX, Health Facilities Development Corp., Hospital Rev. (Brazosport Regional Health System), 5.25%, 7/01/32 | $ | 520,000 | $ | 484,692 | ||||
Conway, AR, Hospital Rev. (Conway Regional Medical Center), 4.45%, 8/01/32 | 540,000 | 528,050 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Escambia County, FL, Health Facilities Authority (Baptist Hospital, Inc.), “A”, 6%, 8/15/36 | $ | 420,000 | $ | 444,977 | ||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 7%, 8/15/44 | 510,000 | 558,455 | ||||||
Independence County, AR, Public Health Education & Housing Facilities Board Rev. (White River Health Systems), 5.75%, 6/01/28 | 1,000,000 | 1,102,700 | ||||||
Indiana Finance Authority Rev. (Sisters of St. Francis Health Services), 5.375%, 11/01/32 | 1,085,000 | 1,160,852 | ||||||
Jefferson County, AR, Hospital Rev., Refunding (Regional Medical Center), AGM, 5%, 6/01/26 | 2,000,000 | 2,114,860 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 5.75%, 6/01/25 | 510,000 | 554,508 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6.375%, 6/01/40 | 545,000 | 583,379 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6.5%, 3/01/45 | 395,000 | 424,321 | ||||||
Louisville & Jefferson County, KY, Metropolitan Government Healthcare Systems Rev. (Norton Healthcare, Inc.), 5.25%, 10/01/36 | 470,000 | 474,695 | ||||||
Mena, AR, Hospital Rev., 4.25%, 8/01/21 | 400,000 | 402,076 | ||||||
Mena, AR, Hospital Rev., 4.6%, 8/01/24 | 615,000 | 619,250 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6%, 10/01/27 | 355,000 | 381,380 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6.125%, 10/01/39 | 490,000 | 513,089 | ||||||
Ohio Higher Educational Facility Commission (University Hospital Health System), “A”, 6.75%, 1/15/15 (c) | 685,000 | 720,209 | ||||||
Pulaski County, AR, Hospital Rev. (Arkansas Children’s Hospital Foundation), AGM, 4%, 3/01/20 | 1,000,000 | 1,070,000 | ||||||
Pulaski County, AR, Public Facilities Board Health Facilities Rev. (Carti Project), 5.5%, 7/01/43 | 750,000 | 774,623 | ||||||
Pulaski, AR, Hospital Rev. (Arkansas Children’s Hospital), ASSD GTY, 5.5%, 3/01/34 | 750,000 | 821,730 | ||||||
Pulaski, AR, Hospital Rev. (Arkansas Children’s Hospital), ASSD GTY, 5.5%, 3/01/39 | 1,375,000 | 1,486,458 | ||||||
Washington County, AR, Hospital Rev. (Regional Medical Center), “A”, 5%, 2/01/35 | 1,000,000 | 1,006,630 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (ProHealth Care, Inc. Obligated Group), 6.625%, 2/15/39 | 990,000 | 1,098,752 |
21
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Wisconsin Health & Educational Facilities Authority Rev. (Wheaton Franciscan Healthcare), 5.25%, 8/15/31 | $ | 675,000 | $ | 690,012 | ||||
$ | 18,015,698 | |||||||
Industrial Revenue - Paper - 0.1% | ||||||||
Valparaiso, IN, Exempt Facilities Rev. (Pratt Paper LLC Project), 7%, 1/01/44 | $ | 100,000 | $ | 106,299 | ||||
Miscellaneous Revenue - Other - 1.0% | ||||||||
New York Liberty Development Corp. Liberty Rev., (7 World Trade Center Project), 5%, 9/15/40 | $ | 1,615,000 | $ | 1,729,697 | ||||
Multi-Family Housing Revenue - 0.6% | ||||||||
Fort Smith, AR, Residential Housing Facilities Board Rev. (Gorman Towers), “A”, GNMA, 5.45%, 6/20/37 | $ | 1,000,000 | $ | 1,000,290 | ||||
Sales & Excise Tax Revenue - 8.6% | ||||||||
Bentonville, AR, Sales & Use Tax, AMBAC, 4.375%, 11/01/25 | $ | 880,000 | $ | 921,659 | ||||
Bentonville, AR, Sales & Use Tax, 4%, 11/01/26 | 1,310,000 | 1,331,903 | ||||||
Cabot , AR, Sales & Use Tax , 5%, 6/01/26 | 700,000 | 786,324 | ||||||
Cabot ,AR, Sales & Use Tax, 5%, 6/01/27 | 1,300,000 | 1,447,342 | ||||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6%, 1/15/41 | 760,000 | 799,224 | ||||||
Fort Smith, AR, Sales & Use Tax, 5%, 5/01/23 | 380,000 | 439,014 | ||||||
Fort Smith, AR, Sales & Use Tax, 5%, 5/01/24 | 2,040,000 | 2,274,906 | ||||||
Guam Government Business Privilege Tax Rev., “C”, 5%, 11/15/17 | 210,000 | 234,753 | ||||||
Massachusetts Bay Transportation Authority, Sales Tax Rev., “A-1”, 5.25%, 7/01/29 | 1,000,000 | 1,217,280 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., 5.25%, 8/01/57 | 1,010,000 | 813,323 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, 0%, 8/01/56 | 9,770,000 | 542,040 | ||||||
Rogers, AR, Sales & Use Tax Rev., 5%, 11/01/23 | 1,000,000 | 1,130,300 | ||||||
Rogers, AR, Sales & Use Tax Rev., 4.125%, 11/01/31 | 500,000 | 515,765 | ||||||
Springdale, AR, Sales & Use Tax Rev., 5%, 11/01/28 | 1,000,000 | 1,108,730 | ||||||
Stuttgart, AR, Sales & Use Tax Rev., AGM, 5%, 6/01/32 | 1,840,000 | 1,911,981 | ||||||
$ | 15,474,544 | |||||||
Single Family Housing Revenue - Local - 1.5% | ||||||||
Pulaski County, AR, Public Facilities Board Rev., Capital Appreciation, “C”, FNMA, 0%, 7/10/14 | $ | 2,750,000 | $ | 2,729,843 |
Issuer | Shares/Par | Value ($) | ||||||
Single Family Housing - State - 1.1% | ||||||||
Arkansas Development Finance Authority Home Ownership Rev., Mortgage Backed Securities Program, “A”, GNMA, 4.85%, 7/01/27 | $ | 540,000 | $ | 543,310 | ||||
Arkansas Development Finance Authority Rev., Mortgage Backed Securities Program, “C”, GNMA, 5.625%, 1/01/35 | 275,000 | 277,508 | ||||||
Arkansas Development Finance Authority, Mortgage Rev., “B”, GNMA, 4.85%, 7/01/31 | 610,000 | 612,733 | ||||||
Arkansas Development Finance Authority, Single Family Mortgage Rev., “B”, GNMA, 5.7%, 7/01/28 | 555,000 | 563,003 | ||||||
$ | 1,996,554 | |||||||
State & Local Agencies - 4.2% | ||||||||
Arkansas Development Finance Authority Rev. (Donaghey Plaza Project), 5%, 6/01/34 | $ | 2,605,000 | $ | 2,811,082 | ||||
Arkansas Development Finance Authority Rev., Correctional Facilities, “A”, 5.125%, 5/15/34 | 500,000 | 519,905 | ||||||
Arkansas Development Finance Authority, Public Purpose Rev. (Arkansas Game & Fish Commission), AGM, 5%, 7/15/27 | 3,205,000 | 3,226,762 | ||||||
New York Tobacco Settlement Financing Corp., Asset-Backed Rev., “B”, 5%, 6/01/21 | 545,000 | 588,556 | ||||||
University of Kentucky, General Receipts, “A”, 5%, 4/01/36 | 120,000 | 132,618 | ||||||
University of Kentucky, General Receipts, “A”, 5%, 4/01/37 | 225,000 | 247,869 | ||||||
$ | 7,526,792 | |||||||
Tax - Other - 3.9% | ||||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/24 | $ | 490,000 | $ | 517,700 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/29 | 65,000 | 68,019 | ||||||
Little Rock, AR, Hotel & Restaurant Gross Receipts Tax Rev., 7.375%, 8/01/15 | 1,055,000 | 1,075,794 | ||||||
Little Rock, AR, Library Construction & Improvement Rev., 4%, 3/01/23 | 810,000 | 839,970 | ||||||
Little Rock, AR, Library Construction & Improvement Rev., 4%, 3/01/24 | 1,685,000 | 1,738,532 | ||||||
Rogers, AR, School District Number 30, 4.75%, 2/01/32 | 935,000 | 942,517 | ||||||
Virgin Islands Public Finance Authority Rev., “A-1”, 5%, 10/01/29 | 135,000 | 138,320 | ||||||
Virgin Islands Public Finance Authority Rev., “A-1”, 5%, 10/01/39 | 150,000 | 149,357 | ||||||
Virgin Islands Public Finance Authority Rev., “B”, 5%, 10/01/25 | 135,000 | 142,349 | ||||||
Virgin Islands Public Finance Authority Rev., Matching Fund Loan Note, “A”, 5%, 10/01/29 | 940,000 | 966,743 | ||||||
Virgin Islands Public Finance Authority Rev., Matching Fund Loan Note, “A”, 6%, 10/01/39 | 505,000 | 508,510 | ||||||
$ | 7,087,811 |
22
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Tobacco - 2.6% | ||||||||
Arkansas Development Finance Authority, Tobacco Settlement Rev. (Cancer Research Center Project), Capital Appreciation, AMBAC, 0%, 7/01/26 | $ | 2,440,000 | $ | 1,482,690 | ||||
Arkansas Development Finance Authority, Tobacco Settlement Rev. (Cancer Research Center Project), Capital Appreciation, AMBAC, 0%, 7/01/27 | 2,470,000 | 1,420,645 | ||||||
Arkansas Development Finance Authority, Tobacco Settlement Rev. (Cancer Research Center Project), Capital Appreciation, AMBAC, 0%, 7/01/28 | 500,000 | 272,380 | ||||||
Children’s Trust Fund, Tobacco Settlement Rev., Puerto Rico, 5.5%, 5/15/39 | 290,000 | 260,234 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.5%, 6/01/23 | 480,000 | 461,477 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 5%, 6/01/41 | 305,000 | 229,494 | ||||||
New Jersey Tobacco Settlement Financing Corp., Capital Appreciation, “1-B”, 0%, 6/01/41 | 2,485,000 | 599,034 | ||||||
New Jersey Tobacco Settlement Financing Corp., Capital Appreciation, “1-C”, 0%, 6/01/41 | 35,000 | 8,306 | ||||||
$ | 4,734,260 | |||||||
Toll Roads - 0.3% | ||||||||
Texas Private Activity Surface Transportation Corp. Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 7%, 12/31/38 | $ | 230,000 | $ | 260,857 | ||||
Texas Private Activity Surface Transportation Corp. Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 6.75%, 6/30/43 | 180,000 | 199,415 | ||||||
$ | 460,272 | |||||||
Transportation - Special Tax - 0.3% | ||||||||
Metropolitan Transportation Authority Rev., NY, “A”, 5%, 11/15/37 | $ | 490,000 | $ | 503,666 | ||||
Universities - Colleges - 24.1% | ||||||||
Arkansas State University, Auxiliary Enterprises Rev., AGM, 4.65%, 4/01/35 | $ | 1,000,000 | $ | 1,004,430 | ||||
Arkansas State University, Housing System Rev. (Jonesboro Campus), 4.5%, 3/01/31 | 2,500,000 | 2,600,450 | ||||||
Arkansas State University, Housing System Rev. (Jonesboro Campus), “C”, AMBAC, 5%, 3/01/32 | 2,595,000 | 2,748,183 | ||||||
Arkansas State University, Student Fee (Jonesboro Campus), “C”, AGM, 4.5%, 3/01/23 | 550,000 | 613,855 | ||||||
Arkansas State University, Student Fee (Jonesboro Campus), “C”, AGM, 4.5%, 3/01/27 | 545,000 | 586,654 | ||||||
Arkansas Technical University, Housing Systems Rev., AMBAC, 5.2%, 12/01/26 | 500,000 | 526,265 |
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
Massachusetts Development Finance Agency Higher Education Rev. (Emerson College), “A”, 5%, 1/01/23 | $ | 1,070,000 | $ | 1,106,776 | ||||
New York Dormitory Authority Rev., Non-State Supported Debt (New York University), “A”, 5.25%, 7/01/48 | 1,605,000 | 1,708,282 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical, & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.125%, 4/01/32 | 85,000 | 69,509 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical, & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.375%, 4/01/42 | 140,000 | 110,810 | ||||||
Puerto Rico Industrial, Tourist, Medical, & Environmental Central Facilities (University of Sacred Heart), 4.375%, 10/01/31 | 60,000 | 46,547 | ||||||
Puerto Rico Industrial, Tourist, Medical, & Environmental Central Facilities (University of Sacred Heart), 5%, 10/01/42 | 30,000 | 22,606 | ||||||
Pulaski, AR, Student Tuition & Fee Rev. (Technical College), AGM, 4%, 4/01/24 | 1,000,000 | 1,046,820 | ||||||
Pulaski, AR, Student Tuition & Fee Rev. (Technical College), 5%, 4/01/41 | 1,000,000 | 1,068,210 | ||||||
University of Arkansas Facilities Rev. (UAMS Campus), 5%, 11/01/25 | 2,000,000 | 2,323,560 | ||||||
University of Arkansas Facilities Rev. (UAMS Campus) , 5%, 11/01/22 | 505,000 | 593,395 | ||||||
University of Arkansas Facilities Rev. (UAMS Campus) , 5%, 11/01/23 | 520,000 | 611,213 | ||||||
University of Arkansas Facilities Rev. (UAMS Campus) , 5%, 10/01/25 | 780,000 | 905,260 | ||||||
University of Arkansas Rev. (Fayetteville Campus), “A”, 5%, 11/01/21 | 1,310,000 | 1,531,822 | ||||||
University of Arkansas Rev. (Fayetteville Campus), “A”, 5%, 11/01/26 | 1,000,000 | 1,122,390 | ||||||
University of Arkansas Rev. (Fort Smith Campus), 5%, 12/01/28 | 860,000 | 934,777 | ||||||
University of Arkansas Rev. (Student Fee-Fort Smith Campus), 4%, 12/01/23 | 250,000 | 266,285 | ||||||
University of Arkansas Rev. (Student Fee-Fort Smith Campus), 4%, 12/01/24 | 250,000 | 264,183 | ||||||
University of Arkansas Rev. (Student Fee-Fort Smith Campus), 4%, 12/01/25 | 500,000 | 523,505 | ||||||
University of Arkansas Rev. (Student Fee-Fort Smith Campus), 4%, 12/01/26 | 305,000 | 314,537 | ||||||
University of Arkansas Rev. (Student Fee-Phillips), 5.1%, 12/01/34 | 750,000 | 799,875 | ||||||
University of Arkansas Rev., “A”, 5%, 11/01/33 | 1,000,000 | 1,064,220 | ||||||
University of Arkansas, Administration Building Rev. , “A”, 5%, 11/01/38 | 1,000,000 | 1,043,970 | ||||||
University of Arkansas, University Construction Rev. (UAMS Campus), “B”, NATL, 5%, 11/01/14 (c) | 1,405,000 | 1,444,340 |
23
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
University of Arkansas, University Construction Rev. (UAMS Campus), “B”, NATL, 5%, 11/01/14 (c) | $ | 2,180,000 | $ | 2,241,040 | ||||
University of Arkansas, University Construction Rev. (UAMS Campus), “B”, NATL, 5%, 11/01/14 (c) | 3,200,000 | 3,289,600 | ||||||
University of Arkansas, University Facilities Rev. (Pine Bluff Campus), “A”, AMBAC, 5%, 12/01/30 | 1,000,000 | 1,056,850 | ||||||
University of Arkansas, University Rev. (Fayetteville Campus), “A”, 5%, 11/01/32 | 1,000,000 | 1,104,070 | ||||||
University of Arkansas, University Rev. (Monticello Campus), 4%, 12/01/35 | 600,000 | 593,112 | ||||||
University of Arkansas, University Rev. (UAMS Campus), 4.5%, 7/01/16 | 750,000 | 811,245 | ||||||
University of Arkansas, University Rev. (UAMS Campus), 4.5%, 7/01/17 | 725,000 | 801,140 | ||||||
University of Arkansas, University Rev. (UAMS Campus), 4.5%, 7/01/18 | 795,000 | 893,405 | ||||||
University of Arkansas, University Rev. (UAMS Campus), 4.5%, 7/01/19 | 320,000 | 361,846 | ||||||
University of Arkansas, University Rev., Var Fac-Fayetteville Campus, AMBAC, 5%, 11/01/36 | 2,500,000 | 2,590,350 | ||||||
University of Central Arkansas Rev., “C”, ASSD GTY, 4.25%, 9/01/40 | 1,950,000 | 1,990,541 | ||||||
University of Puerto Rico Rev., “Q”, 5%, 6/01/36 | 1,145,000 | 625,502 | ||||||
$ | 43,361,430 | |||||||
Utilities - Investor Owned - 1.0% | ||||||||
Independence County, AR, Pollution Control Rev. (Entergy Arkansas, Inc. Project), 2.375%, 1/01/21 | $ | 750,000 | $ | 736,868 | ||||
Independence County, AR, Pollution Control Rev. (Entergy Mississippi, Inc. Project), AMBAC, 4.9%, 7/01/22 | 1,000,000 | 1,021,310 | ||||||
$ | 1,758,178 | |||||||
Utilities - Municipal Owned - 7.9% | ||||||||
Benton, AR, Public Utility Rev., AMBAC, 5%, 9/01/31 | $ | 1,500,000 | $ | 1,573,590 | ||||
Benton, AR, Public Utility Rev., AGM, 5%, 9/01/32 | 1,130,000 | 1,209,168 | ||||||
Benton, AR, Public Utility Rev., AMBAC, 5%, 9/01/36 | 1,500,000 | 1,544,115 | ||||||
Benton, AR, Public Utility Rev., AGM, 5%, 9/01/36 | 1,165,000 | 1,227,048 | ||||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/30 | 2,805,000 | 2,949,598 | ||||||
Guam Power Authority Rev., “A”, 5.5%, 10/01/30 | 450,000 | 475,097 | ||||||
Long Island, NY, Power Authority, Electric Systems Rev., “A”, 6%, 5/01/33 | 245,000 | 276,541 | ||||||
North Little Rock, AR, Electric Rev., “A”, ETM, NATL, 6.5%, 7/01/15 (c) | 2,625,000 | 2,737,639 |
Issuer | Shares/Par | Value ($) | ||||||
Utilities - Municipal Owned - continued | ||||||||
North Little Rock, AR, Electric Rev., “B”, AGM, 5%, 7/01/21 | $ | 1,040,000 | $ | 1,108,962 | ||||
North Little Rock, AR, Electric Rev., “B”, AGM, 5%, 7/01/22 | 1,090,000 | 1,153,732 | ||||||
$ | 14,255,490 | |||||||
Utilities - Other - 0.3% | ||||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/21 | $ | 300,000 | $ | 334,830 | ||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/22 | 155,000 | 173,175 | ||||||
$ | 508,005 | |||||||
Water & Sewer Utility Revenue - 15.4% | ||||||||
Arkansas Community Public Water Systems Authority Rev., 5%, 10/01/32 | $ | 1,020,000 | $ | 1,111,239 | ||||
Arkansas Community Public Water Systems Authority Rev., 3.7%, 10/01/36 | 1,500,000 | 1,422,975 | ||||||
Arkansas Development Finance Authority, Capital Improvement Rev., Revolving Fund Loan, “C”, 5%, 6/01/22 | 1,500,000 | 1,769,205 | ||||||
Arkansas Development Finance Authority, Capital Improvement Rev., Revolving Fund Loan, “C”, 5%, 6/01/23 | 795,000 | 927,383 | ||||||
Arkansas Development Finance Authority, Capital Improvement Rev., Revolving Fund Loan, “C”, 5%, 6/01/24 | 2,645,000 | 3,072,247 | ||||||
Arkansas Development Finance Authority, Capital Improvement Rev., Revolving Fund Loan, “C”, 5%, 6/01/25 | 1,500,000 | 1,733,790 | ||||||
Central Arkansas Water Rev., “B”, 4%, 10/01/14 | 880,000 | 896,694 | ||||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 5.125%, 7/01/37 | 175,000 | 118,678 | ||||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 6%, 7/01/44 | 1,195,000 | 882,747 | ||||||
Fort Smith, AR, Water & Sewer Rev., AGM, 4.5%, 10/01/21 | 1,545,000 | 1,713,729 | ||||||
Fort Smith, AR, Water & Sewer Rev., AGM, 4.5%, 10/01/22 | 455,000 | 501,465 | ||||||
Fort Smith, AR, Water & Sewer Rev., AGM, 5%, 10/01/32 | 2,000,000 | 2,134,040 | ||||||
Hot Springs, AR, Wastewater Rev., 4%, 12/01/19 | 510,000 | 561,454 | ||||||
Hot Springs, AR, Wastewater Rev., 5%, 12/01/20 | 500,000 | 575,911 | ||||||
Hot Springs, AR, Wastewater Rev., 5%, 12/01/21 | 650,000 | 744,588 | ||||||
Hot Springs, AR, Wastewater Rev., ASSD GTY, 4.625%, 12/01/37 | 1,260,000 | 1,313,096 | ||||||
Little Rock, AR, Sewer Rev., 5.5%, 10/01/30 | 750,000 | 830,948 | ||||||
Little Rock, AR, Sewer Rev., 5.75%, 10/01/38 | 1,000,000 | 1,103,760 | ||||||
Little Rock, AR, Sewer Rev., “A”, AGM, 4.375%, 6/01/33 | 750,000 | 760,020 | ||||||
Little Rock, AR, Sewer Rev., “C”, AGM, 5%, 10/01/37 | 3,000,000 | 3,125,730 |
24
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - continued | ||||||||
Rogers, AR, Sewer Rev., AMBAC, 5%, 2/01/37 | $ | 1,000,000 | $ | 1,034,280 | ||||
Wasco, CA, Semitropic Improvement District (Semitropic Water Storage District), “A”, 5%, 12/01/38 | 1,325,000 | 1,389,408 | ||||||
$ | 27,723,387 | |||||||
Total Municipal Bonds (Identified Cost, $175,137,594) |
| $ | 177,568,869 |
Money Market Funds - 0.2% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
MFS Institutional Money Market Portfolio, 0.09%, at Cost and Net Asset Value (v) | 376,083 | $ | 376,083 | |||||
Total Investments (Identified Cost, $175,513,677) |
| $ | 177,944,952 | |||||
Other Assets, Less Liabilities - 1.0% | 1,878,609 | |||||||
Net Assets - 100.0% | $ | 179,823,561 |
See Portfolio Footnotes and Notes to Financial Statements
25
Table of Contents
PORTFOLIO OF INVESTMENTS
3/31/14
MFS CALIFORNIA MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
Municipal Bonds - 98.3% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 5.9% | ||||||||
Chicago, IL, O’Hare International Airport Rev., Third Lien, “A”, 5.625%, 1/01/35 | $ | 780,000 | $ | 853,258 | ||||
Los Angeles, CA, Department of Airports Rev. (Los Angeles International), “A”, 5%, 5/15/29 | 3,000,000 | 3,329,400 | ||||||
Orange County, CA, Airport Rev., “A”, 5%, 7/01/31 | 1,310,000 | 1,438,210 | ||||||
San Diego County, CA, Regional Airport Authority Rev., “A”, 5%, 7/01/21 | 1,500,000 | 1,694,670 | ||||||
San Francisco, CA, City & County Airports Commission, International Airport Rev., “A”, 5%, 5/01/31 | 850,000 | 897,337 | ||||||
San Francisco, CA, City & County Airports Commission, International Airport Rev., “D”, 5%, 5/01/25 | 2,000,000 | 2,241,140 | ||||||
San Jose, CA, Airport Rev., “A”, BHAC, 5.5%, 3/01/23 | 2,345,000 | 2,565,477 | ||||||
San Jose, CA, Airport Rev., “A-2”, 5.25%, 3/01/34 | 2,560,000 | 2,743,475 | ||||||
$ | 15,762,967 | |||||||
General Obligations - General Purpose - 9.3% | ||||||||
Guam Government, “A”, 6.75%, 11/15/29 | $ | 85,000 | $ | 90,026 | ||||
Guam Government, “A”, 5.25%, 11/15/37 | 815,000 | 740,191 | ||||||
Guam Government, “A”, 7%, 11/15/39 | 95,000 | 100,623 | ||||||
Santa Clara County, CA, (Election of 2008), “B”, 5%, 8/01/22 | 4,000,000 | 4,854,680 | ||||||
State of California, 5%, 11/01/21 | 2,485,000 | 2,928,299 | ||||||
State of California, 5%, 8/01/34 | 2,200,000 | 2,381,896 | ||||||
State of California, 5.25%, 4/01/35 | 2,545,000 | 2,799,195 | ||||||
State of California, 6%, 11/01/39 | 3,000,000 | 3,514,470 | ||||||
State of California, 5.5%, 3/01/40 | 3,670,000 | 4,064,965 | ||||||
State of California, 5.25%, 11/01/40 | 2,775,000 | 3,063,184 | ||||||
$ | 24,537,529 | |||||||
General Obligations - Schools - 8.5% | ||||||||
Beaumont, CA, Unified School District (Election of 2008), Capital Appreciation, “C”, AGM, 0%, 8/01/40 | $ | 5,315,000 | $ | 1,320,405 | ||||
Beverly Hills, CA, Unified School District (Election of 2008), Capital Appreciation, 0%, 8/01/29 | 4,335,000 | 2,351,738 | ||||||
Chabot-Las Positas, CA, Community College (Election of 2004), “B”, AMBAC, 5%, 8/01/16 (c) | 1,090,000 | 1,193,768 | ||||||
Colton, CA, Joint Union School District (Election of 2001), Capital Appreciation, “C”, FGIC, 0%, 2/01/32 | 1,000,000 | 388,110 | ||||||
Colton, CA, Joint Union School District (Election of 2001), Capital Appreciation, “C”, FGIC, 0%, 2/01/33 | 3,000,000 | 1,090,050 | ||||||
Folsom Cordova, CA, Unified School District (Election of 2012), “A”, 5%, 10/01/38 | 2,465,000 | 2,616,105 |
Issuer | Shares/Par | Value ($) | ||||||
General Obligations - Schools - continued | ||||||||
Garvey, CA, School District (Election of 2004), Capital Appreciation, AGM, 0%, 8/01/31 | $ | 2,120,000 | $ | 890,336 | ||||
Huntington Beach, CA, Union High School District (Orange County), 5%, 8/01/21 | 1,130,000 | 1,345,548 | ||||||
Moorpark, CA, Unified School District (Election of 2008), Capital Appreciation, “A”, ASSD GTY, 0%, 8/01/33 | 500,000 | 187,135 | ||||||
Moreland, CA, School District (Election of 2002), Capital Appreciation, “B”, FGIC, 0%, 8/01/28 | 1,440,000 | 745,301 | ||||||
Napa Valley, CA, Unified School District (Election of 2006), Capital Appreciation, “A”, 0%, 8/01/29 | 3,385,000 | 1,716,432 | ||||||
San Bernardino, CA, City Unified School District, “A”, 5%, 8/01/23 | 600,000 | 684,396 | ||||||
San Joaquin, CA, Delta Community College District (Election of 2004), “B”, Capital Appreciation, AGM, 0%, 8/01/18 | 2,350,000 | 2,150,532 | ||||||
San Jose, CA, Evergreen Community College District (Election of 2010), “A”, 5%, 8/01/41 | 1,235,000 | 1,318,066 | ||||||
San Mateo County, CA, Community College District (Election of 2001), Capital Appreciation, “A”, NATL, 0%, 9/01/21 | 4,300,000 | 3,514,605 | ||||||
Santa Monica, CA, Community College District (Election of 2002), Capital Appreciation, “C”, NATL, 0%, 8/01/27 | 2,000,000 | 1,096,220 | ||||||
$ | 22,608,747 | |||||||
Healthcare Revenue - Hospitals - 12.6% | ||||||||
California Health Facilities Financing Authority Rev. (Catholic Healthcare West), “A”, 6%, 7/01/29 | $ | 1,500,000 | $ | 1,708,980 | ||||
California Health Facilities Financing Authority Rev. (Catholic Healthcare West), “G”, 5.25%, 7/01/23 | 2,000,000 | 2,017,420 | ||||||
California Health Facilities Financing Authority Rev. (Children’s Hospital of Orange County), 6.25%, 11/01/29 | 2,000,000 | 2,320,360 | ||||||
California Health Facilities Financing Authority Rev. (Providence Health & Services), “B”, 5.5%, 10/01/39 | 1,000,000 | 1,107,610 | ||||||
California Health Facilities Financing Authority Rev. (Providence Health & Services), “C”, 6.5%, 10/01/18 (c) | 30,000 | 37,100 | ||||||
California Health Facilities Financing Authority Rev. (Providence Health & Services), “C”, 6.5%, 10/01/33 | 1,500,000 | 1,705,680 | ||||||
California Health Facilities Financing Authority Rev. (Providence Health & Services), “C”, 6.5%, 10/01/38 | 1,720,000 | 1,960,490 | ||||||
California Statewide Communities Development Authority Rev. (Community Hospital of the Monterey Peninsula), 6%, 6/01/33 | 1,250,000 | 1,415,900 |
26
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
California Statewide Communities Development Authority Rev. (Enloe Medical Center), CALHF, 6.25%, 8/15/33 | $ | 2,000,000 | $ | 2,240,600 | ||||
California Statewide Communities Development Authority Rev. (Enloe Medical Center), “A”, CALHF, 5.5%, 8/15/23 | 1,000,000 | 1,113,700 | ||||||
California Statewide Communities Development Authority Rev. (John Muir Health), 5.125%, 7/01/39 | 1,000,000 | 1,055,590 | ||||||
California Statewide Communities Development Authority Rev. (Santa Ynez Valley Cottage Hospital), 5.25%, 11/01/30 | 1,740,000 | 1,854,283 | ||||||
California Statewide Communities Development Authority Rev. (Sutter Health), “A”, 5%, 8/15/32 | 390,000 | 414,913 | ||||||
California Statewide Communities Development Authority Rev. (Trinity Health Corp.), 5%, 12/01/41 | 2,550,000 | 2,650,113 | ||||||
Madera County, CA, COP (Children’s Hospital Central California), 5.375%, 3/15/36 | 3,000,000 | 3,114,990 | ||||||
Palomar Pomerado Health Care District, CA, COP, 6.75%, 11/01/39 | 1,805,000 | 1,863,085 | ||||||
San Buenaventura, CA, Rev. (Community Memorial Health System), 7.5%, 12/01/41 | 1,000,000 | 1,127,560 | ||||||
Santa Clara County, CA, Financing Authority Rev. (El Camino Hospital), AMBAC, 5.125%, 2/01/41 | 2,550,000 | 2,596,997 | ||||||
Washington Township, CA, Health Care District Rev., “A”, 6.25%, 7/01/39 | 1,000,000 | 1,076,030 | ||||||
West Contra Costa, CA, Healthcare District, AMBAC, 5.5%, 7/01/29 | 2,000,000 | 2,006,160 | ||||||
$ | 33,387,561 | |||||||
Healthcare Revenue - Long Term Care - 3.5% | ||||||||
ABAG Finance Authority for Non-Profit Corps., CA, Rev. (Episcopal Senior Communities), 6.125%, 7/01/41 | $ | 850,000 | $ | 909,041 | ||||
ABAG Finance Authority for Non-Profit Corps., CA, Rev. (Eskaton Properties, Inc.), 5%, 11/15/35 | 1,270,000 | 1,245,260 | ||||||
California Statewide Communities Development Authority Rev. (American Baptist Homes of the West), 6.25%, 10/01/39 | 1,500,000 | 1,564,980 | ||||||
California Statewide Communities Development Authority Rev. (Episcopal Communities & Services for Seniors Obligated Group), 5%, 5/15/47 | 1,785,000 | 1,750,907 | ||||||
California Statewide Communities Development Authority Rev. (Senior Living Presbyterian Homes), 4.875%, 11/15/36 | 1,000,000 | 906,290 | ||||||
California Statewide Communities Development Authority Rev. (The Terraces at San Joaquin Gardens), “A”, 6%, 10/01/42 | 750,000 | 732,990 | ||||||
Eden Township, CA, Healthcare District, COP, 6.125%, 6/01/34 | 1,090,000 | 1,154,245 | ||||||
La Verne, CA, COP (Brethren Hillcrest Homes), “B”, 6.625%, 2/15/25 | 895,000 | 900,692 | ||||||
$ | 9,164,405 |
Issuer | Shares/Par | Value ($) | ||||||
Miscellaneous Revenue - Entertainment & Tourism - 0.3% | ||||||||
Agua Caliente Band of Cahuilla Indians, CA, Rev., 6%, 7/01/18 (n) | $ | 750,000 | $ | 750,068 | ||||
Miscellaneous Revenue - Other - 2.2% | ||||||||
ABAG Finance Authority for Non-Profit Corps., CA, Rev. (Jackson Lab), 5.75%, 7/01/15 (c) | $ | 4,115,000 | $ | 4,483,539 | ||||
California Infrastructure & Economic Development Bank Rev. (Walt Disney Family Museum), 5.25%, 2/01/33 | 1,340,000 | 1,420,789 | ||||||
$ | 5,904,328 | |||||||
Port Revenue - 0.5% | ||||||||
Long Beach, CA, Harbor Rev., “A”, FGIC, 6%, 5/15/17 | $ | 1,230,000 | $ | 1,414,549 | ||||
Sales & Excise Tax Revenue - 2.4% | ||||||||
Los Angeles County, CA, Metropolitan Transportation Authority Sales Tax Rev., “A”, 5%, 7/01/20 | $ | 4,750,000 | $ | 5,659,293 | ||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “C”, 5%, 8/01/40 | 930,000 | 762,172 | ||||||
$ | 6,421,465 | |||||||
Single Family Housing - State - 3.4% | ||||||||
California Housing Finance Agency Rev. (Home Mortgage), “E”, 4.75%, 2/01/30 | $ | 1,760,000 | $ | 1,732,949 | ||||
California Housing Finance Agency Rev. (Home Mortgage), “G”, 4.95%, 8/01/23 | 2,000,000 | 2,024,580 | ||||||
California Housing Finance Agency Rev. (Home Mortgage), “I”, 4.7%, 8/01/26 | 1,500,000 | 1,501,215 | ||||||
California Housing Finance Agency Rev. (Home Mortgage), “L”, 5.45%, 8/01/33 | 3,240,000 | 3,275,381 | ||||||
California Housing Finance Agency Rev. (Home Mortgage), “L”, FNMA, 5.5%, 8/01/38 | 455,000 | 459,960 | ||||||
$ | 8,994,085 | |||||||
State & Agency - Other - 0.5% | ||||||||
Pasadena, CA, COP, (Old Pasadena Parking Facilities Project), 6.25%, 1/01/18 | $ | 1,250,000 | $ | 1,347,163 | ||||
State & Local Agencies - 6.9% | ||||||||
Banning, CA, COP, Water Systems Improvement Project, ETM, AMBAC, 8%, 1/01/19 (c) | $ | 465,000 | $ | 537,800 | ||||
California Public Works Board Lease Rev. (Judicial Council Projects), “A”, 5%, 3/01/28 | 2,120,000 | 2,330,898 | ||||||
California Public Works Board Lease Rev., Department of Education (Riverside Campus), 6%, 4/01/26 | 2,000,000 | 2,354,500 | ||||||
California Public Works Board Lease Rev., Department of General Services, 6.25%, 4/01/34 | 1,500,000 | 1,729,065 | ||||||
California Public Works Board Lease Rev., Department of Justice, “D”, 5.25%, 11/01/20 | 1,565,000 | 1,570,133 | ||||||
Delaware Valley, PA, Regional Finance Authority, “C”, FRN, 0.908%, 6/01/37 | 2,320,000 | 1,580,268 | ||||||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., FGIC, 5%, 6/01/35 | 1,745,000 | 1,767,877 |
27
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
State & Local Agencies - continued | ||||||||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A”, AGM, 4.55%, 6/01/22 | $ | 3,000,000 | $ | 3,162,480 | ||||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., Enhanced, “A”, FGIC, 5%, 6/01/35 | 2,100,000 | 2,125,620 | ||||||
San Diego, CA, Public Facilities Financing Authority Lease Rev. (Master Refunding Project), “A”, 5.25%, 3/01/40 | 1,000,000 | 1,054,990 | ||||||
$ | 18,213,631 | |||||||
Tax - Other - 0.2% | ||||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/24 | $ | 445,000 | $ | 470,156 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/29 | 145,000 | 151,735 | ||||||
$ | 621,891 | |||||||
Tax Assessment - 11.1% | ||||||||
Bay Area Governments Association, Tax Allocation, “A”, AMBAC, 5%, 9/01/33 | $ | 3,700,000 | $ | 3,523,177 | ||||
Fontana, CA, Redevelopment Agency Tax Allocation (Jurupa Hills Redevelopment Project), “A”, 5.5%, 10/01/27 | 3,350,000 | 3,356,767 | ||||||
Glendale, CA, Redevelopment Agency, Tax Allocation Rev. (Central Glendale Redevelopment Project), 5.5%, 12/01/24 | 1,750,000 | 1,820,035 | ||||||
Huntington Beach, CA, Community Facilities District Special Tax (Grand Coast Resort), 5.125%, 9/01/31 | 1,000,000 | 1,000,320 | ||||||
Irvine, CA, Limited Obligation Improvement (Reassessment District #12-1), 4%, 9/02/22 | 685,000 | 721,511 | ||||||
Irvine, CA, Limited Obligation Improvement (Reassessment District #12-1), 5%, 9/02/23 | 340,000 | 379,770 | ||||||
Jurupa, CA, Community Facilities Services District, Special Tax (Eastvale Area District #31), “A”, 5%, 9/01/37 | 1,000,000 | 994,490 | ||||||
Lee Lake, CA, Public Financing Authority Senior Lien Rev., “A”, 5.125%, 9/01/35 | 1,000,000 | 1,018,270 | ||||||
Los Angeles County, CA, Redevelopment Refunding Authority Tax Allocation Rev. “D”, 5%, 9/01/22 | 340,000 | 376,873 | ||||||
Los Angeles County, CA, Redevelopment Refunding Authority Tax Allocation Rev. “D”, 5%, 9/01/23 | 340,000 | 376,271 | ||||||
Los Angeles County, CA, Redevelopment Refunding Authority Tax Allocation Rev. (Hollywood/North Hollywood Project), “A”, 5%, 7/01/21 | 2,300,000 | 2,627,980 | ||||||
North Natomas, CA, Community Facilities District Special Tax, “4-E”, 5.25%, 9/01/33 | 840,000 | 873,482 | ||||||
Orange County, CA, Community Facilities District, Special Tax (Rancho Santa Margarita), “A”, 5.55%, 8/15/17 | 255,000 | 255,579 | ||||||
Rancho Cucamonga, CA, Community Facilities District Special Tax, 5.25%, 9/01/33 | 1,000,000 | 996,330 |
Issuer | Shares/Par | Value ($) | ||||||
Tax Assessment - continued | ||||||||
Riverside County, CA, Redevelopment Agency, Tax Allocation, “A”, XLCA, 5%, 10/01/37 | $ | 1,900,000 | $ | 1,866,446 | ||||
San Diego, CA, Redevelopment Agency, Tax Allocation (Centre City), “A”, AMBAC, 5.25%, 9/01/25 | 2,360,000 | 2,425,986 | ||||||
San Diego, CA, Redevelopment Agency, Tax Allocation (Centre City), “B”, AMBAC, 5.3%, 9/01/20 | 1,250,000 | 1,253,600 | ||||||
San Francisco, CA, City & County Redevelopment Financing Authority, Tax Allocation (Mission Bay North Redevelopment), “C”, 6.375%, 8/01/32 | 1,000,000 | 1,121,540 | ||||||
San Francisco, CA, City & County Redevelopment Financing Authority, Tax Allocation (Mission Bay North Redevelopment), “C”, 6.5%, 8/01/39 | 1,000,000 | 1,124,430 | ||||||
San Francisco, CA, City & County Redevelopment Successor Agency Tax Allocation (Mission Bay South Public Improvements), “A”, 5%, 8/01/43 | 750,000 | 775,020 | ||||||
Santa Cruz County, CA, Redevelopment Agency Tax Allocation Rev., 5%, 9/01/22 | 1,360,000 | 1,532,829 | ||||||
Santa Cruz County, CA, Redevelopment Agency Tax Allocation Rev., 5%, 9/01/23 | 1,000,000 | 1,117,660 | ||||||
$ | 29,538,366 | |||||||
Tobacco - 2.1% | ||||||||
Buckeye, OH, Tobacco Settlement Financing Authority, “A-2”, 5.875%, 6/01/47 | $ | 1,475,000 | $ | 1,187,552 | ||||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A-1”, 5.75%, 6/01/47 | 1,915,000 | 1,543,911 | ||||||
Illinois Railsplitter Tobacco Settlement Authority, 6%, 6/01/28 | 1,800,000 | 2,029,302 | ||||||
New Jersey Tobacco Settlement Financing Corp., Capital Appreciation, “1-B”, 0%, 6/01/41 | 3,655,000 | 881,074 | ||||||
New Jersey Tobacco Settlement Financing Corp., Capital Appreciation, “1-C”, 0%, 6/01/41 | 50,000 | 11,865 | ||||||
$ | 5,653,704 | |||||||
Toll Roads - 0.7% | ||||||||
Riverside County, CA, Transportation Commission, Toll Rev., “A”, 5.75%, 6/01/44 | $ | 1,680,000 | $ | 1,750,258 | ||||
Universities - Colleges - 10.0% | ||||||||
California Educational Facilities Authority Rev., 5%, 2/01/17 | $ | 545,000 | $ | 579,499 | ||||
California Educational Facilities Authority Rev., 5%, 2/01/17 (c) | 325,000 | 364,936 | ||||||
California Educational Facilities Authority Rev. (Claremont Graduate University), “A”, 6%, 3/01/33 | 1,500,000 | 1,635,330 | ||||||
California Educational Facilities Authority Rev. (Dominican University of California), 5%, 12/01/25 | 800,000 | 823,016 |
28
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
California Educational Facilities Authority Rev. (Dominican University of California), 5%, 12/01/36 | $ | 1,150,000 | $ | 1,128,518 | ||||
California Educational Facilities Authority Rev. (Pitzer College), 6%, 4/01/40 | 3,000,000 | 3,318,660 | ||||||
California Educational Facilities Authority Rev. (University of San Francisco), 6.125%, 10/01/30 | 1,760,000 | 2,081,323 | ||||||
California Educational Facilities Authority Rev. (University of The Pacific), 5.25%, 11/01/29 | 1,265,000 | 1,355,068 | ||||||
California Educational Facilities Authority Rev., ETM, 5%, 2/01/17 (c) | 140,000 | 157,203 | ||||||
California Municipal Finance Authority Rev. (Biola University), 5.8%, 10/01/28 | 2,000,000 | 2,173,980 | ||||||
California Municipal Finance Authority Rev. (University of La Verne), “A”, 6.125%, 6/01/30 | 1,500,000 | 1,639,050 | ||||||
California Municipal Finance Authority Rev. (University of La Verne), “A”, 6.25%, 6/01/40 | 1,500,000 | 1,632,210 | ||||||
California Public Works Board Lease Rev. (The Regents of the University of California), 5%, 4/01/34 | 1,500,000 | 1,774,725 | ||||||
California Public Works Board Lease Rev. (The Regents of the University of California), 5%, 12/01/28 | 2,125,000 | 2,562,283 | ||||||
California State University Rev., “A”, 5%, 11/01/24 | 2,130,000 | 2,447,903 | ||||||
California Statewide Communities Development Authority Rev. (Lancer Plaza Project), 5.875%, 11/01/43 | 1,270,000 | 1,209,345 | ||||||
Oakland, CA, Joint Powers Financing Authority Rev., “A-1”, ASSD GTY, 5.25%, 1/01/17 | 1,375,000 | 1,524,476 | ||||||
$ | 26,407,525 | |||||||
Universities - Dormitories - 1.5% | ||||||||
California Statewide Communities Development Authority Rev. (Lancer Educational Student Housing Project), 5.625%, 6/01/33 | $ | 2,000,000 | $ | 1,874,020 | ||||
California Statewide Communities Development Authority Rev. (Student Housing, SUCI East Campus), 6%, 5/15/40 | 2,000,000 | 2,128,480 | ||||||
$ | 4,002,500 | |||||||
Universities - Secondary Schools - 1.3% | ||||||||
California Municipal Finance Authority Rev. (Partnerships to Uplift Communities Project), “A”, 5%, 8/01/32 | $ | 825,000 | $ | 725,621 | ||||
California Statewide Communities Development Authority School Facility Rev. (Aspire Public Schools), 6.125%, 7/01/46 | 1,300,000 | 1,273,012 | ||||||
California Statewide Communities Development Authority, School Facility Rev. (Alliance for College-Ready Public Schools), “A”, 6.375%, 7/01/47 | 1,270,000 | 1,323,213 | ||||||
$ | 3,321,846 |
Issuer | Shares/Par | Value ($) | ||||||
Utilities - Cogeneration - 0.6% | ||||||||
California Pollution Control Financing Authority, Water Furnishing Rev. (Poseidon Resources Desalination Project), 5%, 11/21/45 | $ | 1,745,000 | $ | 1,649,671 | ||||
Utilities - Investor Owned - 0.8% | ||||||||
California Pollution Control Financing Authority, Water Facilities Rev. (American Water Capital Corp. Project), 5.25%, 8/01/40 | $ | 2,000,000 | $ | 2,023,440 | ||||
Utilities - Municipal Owned - 6.2% | ||||||||
California Infrastructure & Economic Development Bank Rev. (California Independent System Corp.), “A”, 6%, 2/01/15 (c) | $ | 3,755,000 | $ | 3,937,305 | ||||
Imperial, CA, Irrigation District Electric Rev., “B”, 5%, 11/01/25 | 1,015,000 | 1,114,998 | ||||||
Imperial, CA, Irrigation District Electric Rev., “B”, 5%, 11/01/26 | 1,245,000 | 1,352,319 | ||||||
Los Angeles, CA, Department of Water & Power Rev. (Power System), “B”, 5%, 7/01/43 | 2,890,000 | 3,091,086 | ||||||
Sacramento, CA, Municipal Utility District Rev., “X”, 5%, 8/15/25 | 2,130,000 | 2,411,117 | ||||||
Tuolumne Wind Project Authority Rev. (Tuolomne Co.), “A”, 5.625%, 1/01/29 | 2,000,000 | 2,254,980 | ||||||
Vernon, CA, Electric System Rev., “A”, 5.5%, 8/01/41 | 2,130,000 | 2,243,167 | ||||||
$ | 16,404,972 | |||||||
Utilities - Other - 2.4% | ||||||||
California M-S-R Energy Authority Gas Rev., “A”, 7%, 11/01/34 | $ | 1,750,000 | $ | 2,296,438 | ||||
Long Beach, CA, Bond Finance Authority Natural Gas Purchase Rev., “A”, 5.25%, 11/15/22 | 2,210,000 | 2,455,509 | ||||||
Southern California Public Power Authority (Natural Gas Project No. 1), “A”, 5%, 11/01/33 | 1,655,000 | 1,748,574 | ||||||
$ | 6,500,521 | |||||||
Water & Sewer Utility Revenue - 5.4% | ||||||||
California Department of Water Resources Rev. (Central Valley Project Water System), “AM”, 5%, 12/01/24 | $ | 3,500,000 | $ | 4,183,865 | ||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 5.125%, 7/01/37 | 240,000 | 162,758 | ||||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 6%, 7/01/44 | 740,000 | 546,638 | ||||||
Guam Government Waterworks Authority, Water & Wastewater System Rev., 5.625%, 7/01/40 | 525,000 | 543,790 | ||||||
Madera, CA, Irrigation Financing Authority Rev., 6.5%, 1/01/40 | 2,560,000 | 2,786,714 | ||||||
Ontario, CA, COP (Water Systems Improvement Project), NATL, 5%, 7/01/14 (c) | 2,000,000 | 2,023,940 | ||||||
Placerville, CA, Public Financing Authority Rev. (Wastewater Systems Refining & Improvement Project), XLCA, 5%, 9/01/34 | 2,000,000 | 1,896,940 |
29
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - continued | ||||||||
San Diego, CA, Public Facilities Financing Authority Sewer Rev., “A”, 5%, 5/15/28 | $ | 350,000 | $ | 392,130 | ||||
Soquel Creek, CA, Water District, COP, 5%, 3/01/43 | 1,715,000 | 1,817,351 | ||||||
$ | 14,354,126 | |||||||
Total Municipal Bonds (Identified Cost, $247,377,555) | $ | 260,735,318 |
Money Market Funds - 0.6% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
MFS Institutional Money Market Portfolio, 0.09%, at Cost and Net Asset Value (v) | 1,557,972 | $ | 1,557,972 | |||||
Total Investments (Identified Cost, $248,935,527) | $ | 262,293,290 | ||||||
Other Assets, Less Liabilities - 1.1% | 2,804,907 | |||||||
Net Assets - 100.0% | $ | 265,098,197 |
See Portfolio Footnotes and Notes to Financial Statements
30
Table of Contents
PORTFOLIO OF INVESTMENTS
3/31/14
MFS GEORGIA MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
Municipal Bonds - 97.7% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 5.3% | ||||||||
Atlanta, GA, Airport Passenger Facilities Rev., “J”, AGM, 5%, 1/01/29 | $ | 750,000 | $ | 772,641 | ||||
Atlanta, GA, Airport Rev., “B”, 5%, 1/01/33 | 1,000,000 | 1,087,560 | ||||||
Atlanta, GA, Airport Rev., “B”, AGM, 5.25%, 1/01/33 | 1,000,000 | 1,010,130 | ||||||
Augusta, GA, Airport Rev., “B”, 5.35%, 1/01/28 | 350,000 | 352,436 | ||||||
$ | 3,222,767 | |||||||
General Obligations - General Purpose - 6.2% | ||||||||
Gilmer County, GA, Building Authority Rev. (Courthouse Project), “A”, SYNCORA, 5%, 4/01/29 | $ | 500,000 | $ | 512,548 | ||||
Guam Government, “A”, 6.75%, 11/15/29 | 185,000 | 195,939 | ||||||
Guam Government, “A”, 5.25%, 11/15/37 | 100,000 | 90,821 | ||||||
Guam Government, “A”, 7%, 11/15/39 | 25,000 | 26,480 | ||||||
Gwinnett County, GA, Development Authority Rev. (Civic & Cultural Center), 4%, 9/01/21 | 510,000 | 563,963 | ||||||
Lagrange-Troup County, GA, Hospital Authority Rev., 5.5%, 7/01/38 | 500,000 | 541,350 | ||||||
State of California, 6%, 11/01/39 | 420,000 | 492,026 | ||||||
State of Georgia, “E”, 5%, 7/01/16 | 1,000,000 | 1,101,490 | ||||||
State of Illinois, 5.5%, 7/01/33 | 65,000 | 70,275 | ||||||
State of Illinois, 5.5%, 7/01/38 | 190,000 | 203,781 | ||||||
$ | 3,798,673 | |||||||
General Obligations - Schools - 6.0% | ||||||||
Forsyth County, GA, School District, 5%, 2/01/18 | $ | 610,000 | $ | 689,605 | ||||
Gwinnett County, GA, School District, 5%, 2/01/29 | 1,000,000 | 1,177,620 | ||||||
Gwinnett County, GA, School District, 5%, 2/01/21 | 1,000,000 | 1,190,550 | ||||||
Jefferson, GA, School District, “A”, 5.25%, 2/01/29 | 500,000 | 566,000 | ||||||
$ | 3,623,775 | |||||||
Healthcare Revenue - Hospitals - 17.8% | ||||||||
Brunswick, GA, Hospital Authority Rev. (Glynn-Brunswick Memorial Hospital), 5.625%, 8/01/34 | $ | 750,000 | $ | 792,149 | ||||
Clarke County, GA, Hospital Authority Rev. (Athens Regional Medical Center Project), 5%, 1/01/32 | 1,000,000 | 1,071,480 | ||||||
Cobb County, GA, Kennestone Hospital Authority Rev. (Wellstar Health System, Inc.), “B”, AMBAC, 6.25%, 4/01/34 | 500,000 | 563,690 | ||||||
Dalton, GA, Development Authority Rev. (Hamilton Health Care System), 5%, 8/15/28 | 500,000 | 533,400 | ||||||
DeKalb County, GA, Hospital Authority Rev. (DeKalb Medical Center, Inc.), 6.125%, 9/01/40 | 500,000 | 506,700 | ||||||
DeKalb County, GA, Private Hospital Authority Rev. Anticipation Certificates (Children’s Healthcare), 5.25%, 11/15/39 | 750,000 | 791,348 | ||||||
Escambia County, FL, Health Facilities Authority (Baptist Hospital, Inc.), “A”, 6%, 8/15/36 | 350,000 | 370,815 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Fulton County, GA, Development Authority Rev. (Piedmont Healthcare), “A”, 5.25%, 6/15/37 | $ | 700,000 | $ | 741,685 | ||||
Gainesville & Hall Counties, GA, Hospital Authority Rev. (Northeast Georgia Health System, Inc.), “A”, 5.25%, 2/15/34 | 500,000 | 507,815 | ||||||
Gainesville & Hall Counties, GA, Hospital Authority Rev. (Northeast Georgia Health System, Inc.), “B”, 5%, 2/15/33 | 500,000 | 520,845 | ||||||
Georgia Medical Center Hospital Authority Rev. (Columbus Regional Healthcare System, Inc.), ASSD GTY, 6.5%, 8/01/38 | 300,000 | 326,283 | ||||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 7%, 8/15/44 | 200,000 | 219,002 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.25%, 7/01/31 | 45,000 | 49,093 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.375%, 7/01/41 | 210,000 | 229,081 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6.375%, 6/01/40 | 200,000 | 214,084 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6.5%, 3/01/45 | 135,000 | 145,021 | ||||||
Miami-Dade County, FL, Health Facilities Authority Hospital Rev. (Variety Children’s Hospital), “A”, 6%, 8/01/30 | 45,000 | 50,144 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6%, 10/01/27 | 130,000 | 139,660 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6.125%, 10/01/39 | 180,000 | 188,482 | ||||||
North Carolina Medical Care Commission, Hospital Rev. (The North Carolina Baptist Hospitals, Inc.), 5.25%, 6/01/29 | 355,000 | 389,353 | ||||||
Richmond County, GA, Development Authority Rev., Capital Appreciation, ETM, 0%, 12/01/21 (c) | 225,000 | 187,700 | ||||||
Richmond County, GA, Hospital Authority Rev. Anticipation Certificates (University Health Services, Inc. Project), 5.5%, 1/01/36 | 750,000 | 788,828 | ||||||
Thomasville, GA, Hospital Authority Rev. Anticipation Certificates (John D. Archbold Memorial Hospital), 5.125%, 11/01/30 | 500,000 | 528,975 | ||||||
Thomasville, GA, Hospital Authority Rev. Anticipation Certificates (John D. Archbold Memorial Hospital), 5.375%, 11/01/40 | 500,000 | 526,980 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (ProHealth Care, Inc. Obligated Group), 6.625%, 2/15/39 | 385,000 | 427,292 | ||||||
$ | 10,809,905 |
31
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Long Term Care - 1.6% | ||||||||
Fulton County, GA, Residential Care Facilities, Elderly Authority Rev. (Canterbury Court), “A”, 6.125%, 2/15/34 | $ | 150,000 | $ | 150,576 | ||||
Gainesville & Hall County, GA, Development Authority Retirement Community Rev. (ACTS Retirement), 6.625%, 11/15/39 | 200,000 | 217,874 | ||||||
Georgia Medical Center Hospital Authority Rev. (Spring Harbor Green Island Project), 5.25%, 7/01/37 | 200,000 | 184,362 | ||||||
Savannah, GA, Economic Development Authority Rev., Capital Appreciation, “C”, ETM, 0%, 12/01/21 (c) | 500,000 | 417,110 | ||||||
$ | 969,922 | |||||||
Industrial Revenue - Environmental Services - 0.9% | ||||||||
Savannah, GA, Economic Development Authority, Solid Waste Disposal Rev. (Georgia Waste Management Project), “A”, 5.5%, 7/01/16 | $ | 500,000 | $ | 537,635 | ||||
Industrial Revenue - Paper - 1.1% | ||||||||
Rockdale County, GA, Development Authority Project Rev. (Visy Paper Project), “A”, 6.125%, 1/01/34 | $ | 150,000 | $ | 151,788 | ||||
Savannah, GA, Economic Development Pollution (Union Camp Corp.), 6.15%, 3/01/17 | 500,000 | 551,215 | ||||||
$ | 703,003 | |||||||
Miscellaneous Revenue - Other - 2.5% | ||||||||
Florida Citizens Property Insurance Corp., “A-1”, 5%, 6/01/20 | $ | 285,000 | $ | 328,252 | ||||
Indiana Finance Authority Rev., (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/40 | 75,000 | 74,885 | ||||||
Indiana Finance Authority Rev., (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/44 | 110,000 | 108,472 | ||||||
Miami-Dade County, FL, Special Obligation, “B”, 5%, 10/01/35 | 90,000 | 94,509 | ||||||
New York Liberty Development Corp. Liberty Rev., (7 World Trade Center Project), 5%, 9/15/40 | 560,000 | 599,771 | ||||||
New York, NY, Industrial Development Agency, Airport Facilities Rev. (Transportation Infrastructure Properties LLC), 5%, 7/01/28 | 310,000 | 315,003 | ||||||
$ | 1,520,892 | |||||||
Sales & Excise Tax Revenue - 2.6% | ||||||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6.5%, 1/15/30 | $ | 265,000 | $ | 292,181 | ||||
Guam Government Business Privilege Tax Rev., “A”, 5.25%, 1/01/36 | 170,000 | 175,998 | ||||||
Guam Government Business Privilege Tax Rev., “C”, 5%, 11/15/16 | 65,000 | 71,343 | ||||||
Guam Government Business Privilege Tax Rev., “C”, 5%, 11/15/17 | 70,000 | 78,251 |
Issuer | Shares/Par | Value ($) | ||||||
Sales & Excise Tax Revenue - continued | ||||||||
Metropolitan Atlanta, GA, Rapid Transit Authority Rev., “A”, 4%, 7/01/33 | $ | 500,000 | $ | 501,720 | ||||
Metropolitan Atlanta, GA, Rapid Transit Authority Rev., “B”, AGM, 5%, 7/01/37 | 250,000 | 268,865 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., 5.25%, 8/01/57 | 280,000 | 225,476 | ||||||
$ | 1,613,834 | |||||||
Single Family Housing Revenue - Local - 0.8% | ||||||||
Atlanta, GA, Urban Residential Financing Authority, Multifamily Housing Rev. (Ginnie Mae Collateralized - Amal Heights), GNMA, 4.9%, 5/20/40 | $ | 500,000 | $ | 513,495 | ||||
Single Family Housing - State - 1.9% | ||||||||
California Housing Finance Agency Rev. (Home Mortgage), “I”, 4.7%, 8/01/26 | $ | 300,000 | $ | 300,243 | ||||
Georgia Housing & Finance Authority Rev., Single Family Mortgage, “A”, 3.45%, 12/01/32 | 500,000 | 467,670 | ||||||
Georgia Housing & Finance Authority Rev., Single Family Mortgage, “B-2”, 4.5%, 12/01/24 | 90,000 | 90,241 | ||||||
Georgia Housing & Finance Authority Rev., Single Family Mortgage, “D-2”, 5.2%, 12/01/32 | 285,000 | 289,876 | ||||||
$ | 1,148,030 | |||||||
State & Agency - Other - 2.6% | ||||||||
Carroll City-County, GA, Hospital Authority Rev. (Tanner Medical Center), 5%, 7/01/40 | $ | 500,000 | $ | 516,465 | ||||
Floyd County, GA, Hospital Authority Rev. Anticipation Certificates (Floyd Medical Center Project), “B”, 5%, 7/01/32 | 1,000,000 | 1,058,770 | ||||||
$ | 1,575,235 | |||||||
State & Local Agencies - 1.9% | ||||||||
Georgia Municipal Association, Inc. (Riverdale Public Purpose Project), ASSD GTY, 5.5%, 5/01/38 | $ | 1,000,000 | $ | 1,058,860 | ||||
Los Angeles, CA, Municipal Improvement Corp. Lease Rev. (Real Property), “E”, 6%, 9/01/39 | 115,000 | 129,843 | ||||||
$ | 1,188,703 | |||||||
Tax - Other - 1.0% | ||||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/24 | $ | 75,000 | $ | 79,240 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/29 | 25,000 | 26,161 | ||||||
Virgin Islands Public Finance Authority Rev., ���A-1”, 5%, 10/01/29 | 50,000 | 51,230 | ||||||
Virgin Islands Public Finance Authority Rev., “B”, 5%, 10/01/25 | 50,000 | 52,722 | ||||||
Virgin Islands Public Finance Authority Rev., Matching Fund Loan Note, “A”, 5%, 10/01/29 | 190,000 | 195,406 | ||||||
Virgin Islands Public Finance Authority Rev., Matching Fund Loan Note, “A”, 6%, 10/01/39 | 180,000 | 181,251 | ||||||
$ | 586,010 |
32
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Tax Assessment - 0.5% | ||||||||
Atlanta, GA, Tax Allocation (Eastside Project), “B”, 5.6%, 1/01/30 | $ | 150,000 | $ | 156,573 | ||||
Atlanta, GA, Tax Allocation (Princeton Lakes Project), 5.5%, 1/01/31 | 125,000 | 125,388 | ||||||
$ | 281,961 | |||||||
Tobacco - 1.3% | ||||||||
Illinois Railsplitter Tobacco Settlement Authority, 6%, 6/01/28 | $ | 235,000 | $ | 264,937 | ||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.75%, 6/01/34 | 90,000 | 67,973 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 5%, 6/01/41 | 335,000 | 252,067 | ||||||
New Jersey Tobacco Settlement Financing Corp., Capital Appreciation, “1-B”, 0%, 6/01/41 | 840,000 | 202,490 | ||||||
New Jersey Tobacco Settlement Financing Corp., Capital Appreciation, “1-C”, 0%, 6/01/41 | 10,000 | 2,373 | ||||||
$ | 789,840 | |||||||
Toll Roads - 0.8% | ||||||||
Texas Private Activity Surface Transportation Corp. Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 7%, 12/31/38 | $ | 80,000 | $ | 90,733 | ||||
Texas Private Activity Surface Transportation Corp. Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 6.75%, 6/30/43 | 60,000 | 66,472 | ||||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 6%, 1/01/37 | 120,000 | 127,682 | ||||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 5.5%, 1/01/42 | 190,000 | 194,020 | ||||||
$ | 478,907 | |||||||
Transportation - Special Tax - 0.3% | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “CC”, AGM, 5.5%, 7/01/28 | $ | 185,000 | $ | 183,183 | ||||
Universities - Colleges - 18.4% | ||||||||
Athens, GA, Housing Authority Rev. (University of Georgia East Campus Funding), 5.25%, 6/15/35 | $ | 500,000 | $ | 533,160 | ||||
Athens-Clarke County, GA, Unified Government Development Authority, Educational Facilities Rev., Convertible Capital Appreciation, 5%, 6/15/24 | 250,000 | 271,745 | ||||||
Athens-Clarke County, GA, Unified Government Development Authority, Educational Facilities Rev., Convertible Capital Appreciation, 5%, 6/15/31 | 250,000 | 263,815 | ||||||
Atkinson-Coffee County, GA, Joint Development Authority Rev. (SGC Real Estate Foundation LLC), ASSD GTY, 5.25%, 6/01/34 | 500,000 | 526,950 |
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
Atlanta, GA, Development Authority Educational Facilities Rev. (Panther Place), ASSD GTY, 4.75%, 7/01/32 | $ | 500,000 | $ | 518,035 | ||||
Atlanta, GA, Development Authority Educational Facilities Rev. (Science Park LLC), 5%, 7/01/32 | 500,000 | 521,850 | ||||||
Atlanta, GA, Development Authority Educational Facilities Rev. (Science Park LLC), 5%, 7/01/39 | 500,000 | 511,070 | ||||||
Bleckley-Dodge County, GA, Student Housing Facilities Rev. (Middle Georgia College), 5.25%, 7/01/38 | 500,000 | 514,500 | ||||||
Cobb County, GA, Development Authority, Dining Hall Lease Rev. (KSU Dining Hall), ASSD GTY, 5.75%, 7/15/39 | 1,000,000 | 1,100,000 | ||||||
Cobb County, GA, Development Authority, Sports & Recreation Facilities Lease Rev. (Kennesaw State University Foundation), AGM, 5%, 7/15/35 | 750,000 | 783,630 | ||||||
Dahlonega, GA, Downtown Development Authority Rev. (North Georgia PHD LLC), ASSD GTY, 5.25%, 7/01/34 | 500,000 | 530,245 | ||||||
Dekalb Newton & Gwinnett Counties, GA, Joint Development Authority Rev. (GGC Foundation LLC), 6%, 7/01/34 | 500,000 | 540,710 | ||||||
Fulton County, GA, Development Authority Rev. (Georgia Tech Foundation Funding), SYNCORA, 5%, 6/01/32 | 500,000 | 524,375 | ||||||
Fulton County, GA, Development Authority Rev. (Molecular Science Building), NATL, 5%, 5/01/34 | 1,000,000 | 1,001,900 | ||||||
Georgia Higher Education Facilities Authority Rev. (Real Estate Foundation), 6%, 6/15/34 | 300,000 | 329,163 | ||||||
Marietta, GA, Development Facilities Authority Rev. (Life University), 7%, 6/15/30 | 100,000 | 103,278 | ||||||
Marietta, GA, Development Facilities Authority Rev. (Life University), 7%, 6/15/39 | 100,000 | 101,069 | ||||||
New Jersey Educational Facilities Authority Rev. (University of Medicine & Dentistry), “B”, ETM, 6%, 12/01/17 (c) | 275,000 | 318,445 | ||||||
Pinellas County, FL, Educational Facilities Authority Rev. (Barry University), 6%, 10/01/41 | 65,000 | 68,855 | ||||||
Private Colleges & Universities, GA, Authority Rev. (Agnes Scott College), 5%, 6/01/24 | 500,000 | 553,770 | ||||||
Private Colleges & Universities, GA, Authority Rev. (Mercer University), “C”, 5.25%, 10/01/27 | 350,000 | 376,285 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical, & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.125%, 4/01/32 | 25,000 | 20,444 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical, & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.375%, 4/01/42 | 45,000 | 35,618 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical, & Environmental Control Facilities Financing Authority, Higher Education Rev. (International American University of Puerto Rico Project), 5%, 10/01/31 | 55,000 | 49,037 |
33
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
Savannah, GA, Economic Development Authority Rev. (AASU Student Union LLC), ASSD GTY, 5.125%, 6/15/39 | $ | 500,000 | $ | 520,340 | ||||
Savannah, GA, Economic Development Authority Rev. (SSU Community Development I LLC Project), ASSD GTY, 5.5%, 6/15/35 | 500,000 | 540,790 | ||||||
$ | 11,159,079 | |||||||
Universities - Secondary Schools - 0.1% | ||||||||
North Texas Education Finance Corp., Education Rev. (Uplift Education), “A”, 5.125%, 12/01/42 | $ | 75,000 | $ | 74,493 | ||||
Utilities - Investor Owned - 0.3% | ||||||||
Michigan Strategic Fund Ltd. Obligation Rev. (Detroit Edison Co.), 5.5%, 8/01/29 (b) | $ | 160,000 | $ | 175,550 | ||||
Utilities - Municipal Owned - 4.6% | ||||||||
Georgia Municipal Electric Authority Power Rev., “A”, NATL, 6.5%, 1/01/20 | $ | 995,000 | $ | 1,109,087 | ||||
Georgia Municipal Electric Authority Power Rev., “Z”, 5.5%, 1/01/20 | 270,000 | 295,180 | ||||||
Georgia Municipal Gas Authority Rev. (Gas Portfolio III Project), “S”, 5%, 10/01/25 | 500,000 | 555,865 | ||||||
Georgia Municipal Gas Authority Rev. (Gas Portfolio III Project), “S”, 5%, 10/01/26 | 500,000 | 551,610 | ||||||
Guam Power Authority Rev., “A”, 5.5%, 10/01/30 | 160,000 | 168,923 | ||||||
Long Island, NY, Power Authority, Electric Systems Rev., “A”, 6%, 5/01/33 | 100,000 | 112,874 | ||||||
$ | 2,793,539 | |||||||
Utilities - Other - 3.1% | ||||||||
Georgia Main Street Natural Gas, Inc., Gas Project Rev., “A”, 5%, 3/15/22 | $ | 910,000 | $ | 1,028,245 | ||||
Georgia Main Street Natural Gas, Inc., Gas Project Rev., “B”, 5%, 3/15/19 | 250,000 | 277,083 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/19 | 225,000 | 252,855 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/20 | 250,000 | 279,793 | ||||||
Texas Gas Acquisition & Supply Corp III., Gas Supply Rev., 5%, 12/15/31 | 40,000 | 40,646 | ||||||
$ | 1,878,622 |
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - 16.1% | ||||||||
Athens-Clarke County, GA, Unified Government Water & Sewer Rev., 5.625%, 1/01/33 | $ | 500,000 | $ | 559,965 | ||||
Augusta, GA, Water & Sewer Rev., AGM, 5.25%, 10/01/34 | 1,000,000 | 1,016,910 | ||||||
Cherokee County, GA, Water & Sewer Authority Rev., 5%, 8/01/21 | 385,000 | 442,396 | ||||||
Cherokee County, GA, Water & Sewer Authority Rev., 5%, 8/01/28 | 800,000 | 873,240 | ||||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 5.125%, 7/01/37 | 60,000 | 40,690 | ||||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 6%, 7/01/44 | 420,000 | 310,254 | ||||||
DeKalb County, GA, Water & Sewer Rev., “A”, 5.25%, 10/01/31 | 1,000,000 | 1,115,880 | ||||||
DeKalb County, GA, Water & Sewer Rev., “B”, 5.25%, 10/01/25 | 1,000,000 | 1,207,640 | ||||||
Fulton County, GA, Water & Sewer Rev., 5%, 1/01/23 | 1,000,000 | 1,154,240 | ||||||
Fulton County, GA, Water & Sewer Rev., 5%, 1/01/26 | 500,000 | 578,055 | ||||||
Guam Government Waterworks Authority, Water & Wastewater System Rev., 5.625%, 7/01/40 | 60,000 | 62,147 | ||||||
Henry County, GA, Water & Sewer Authority Rev., BHAC, 5.25%, 2/01/27 | 1,000,000 | 1,207,220 | ||||||
Henry County, GA, Water & Sewer Authority Rev., 5.25%, 2/01/28 | 1,000,000 | 1,189,280 | ||||||
$ | 9,757,917 | |||||||
Total Municipal Bonds (Identified Cost, $56,991,108) | $ | 59,384,970 | ||||||
Money Market Funds - 1.6% | ||||||||
MFS Institutional Money Market Portfolio, 0.09%, at Cost and Net Asset Value (v) | 983,637 | $ | 983,637 | |||||
Total Investments (Identified Cost, $57,974,745) | $ | 60,368,607 | ||||||
Other Assets, Less Liabilities - 0.7% | 402,196 | |||||||
Net Assets - 100.0% | $ | 60,770,803 |
See Portfolio Footnotes and Notes to Financial Statements
34
Table of Contents
PORTFOLIO OF INVESTMENTS
3/31/14
MFS MARYLAND MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
Municipal Bonds - 96.8% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 0.9% | ||||||||
Metropolitan Washington, DC, Airport Authority Rev., “A”, 5%, 10/01/39 | $ | 750,000 | $ | 793,403 | ||||
General Obligations - General Purpose - 16.4% | ||||||||
Anne Arundel County, MD, Consolidated Water & Sewer, 5%, 4/01/22 | $ | 530,000 | $ | 635,237 | ||||
Anne Arundel County, MD, General Improvement, 5%, 4/01/25 | 2,000,000 | 2,342,880 | ||||||
Anne Arundel County, MD, Special Obligation (Arundel Mills Project), 5.125%, 7/01/29 | 1,000,000 | 1,007,310 | ||||||
Baltimore County, MD, Public Improvement, 5%, 2/01/21 | 1,000,000 | 1,190,550 | ||||||
Baltimore County, MD, Public Improvement, 5%, 2/01/28 | 2,000,000 | 2,307,300 | ||||||
Guam Government, “A”, 6.75%, 11/15/29 | 70,000 | 74,139 | ||||||
Guam Government, “A”, 7%, 11/15/39 | 80,000 | 84,735 | ||||||
Memphis, TN, Refunding General Improvement, “B”, 5%, 4/01/31 | 115,000 | 129,545 | ||||||
Prince George’s County, MD, Consolidated Public Improvement, “A”, 5%, 9/15/30 | 1,500,000 | 1,705,365 | ||||||
State of California, 6%, 11/01/39 | 720,000 | 843,473 | ||||||
State of Illinois, 5.5%, 7/01/33 | 90,000 | 97,304 | ||||||
State of Illinois, 5.5%, 7/01/38 | 275,000 | 294,946 | ||||||
State of Maryland, 5%, 8/01/20 | 3,500,000 | 3,913,070 | ||||||
Washington Suburban Sanitary District, MD, Consolidated Public Improvement, 5%, 6/01/21 | 500,000 | 595,560 | ||||||
$ | 15,221,414 | |||||||
Healthcare Revenue - Hospitals - 22.7% | ||||||||
Brazoria County, TX, Health Facilities Development Corp., Hospital Rev. (Brazosport Regional Health System), 5.25%, 7/01/32 | $ | 255,000 | $ | 237,686 | ||||
Escambia County, FL, Health Facilities Authority (Baptist Hospital, Inc.), “A”, 6%, 8/15/36 | 590,000 | 625,087 | ||||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 7%, 8/15/44 | 345,000 | 377,778 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6.375%, 6/01/40 | 370,000 | 396,055 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6.5%, 3/01/45 | 575,000 | 617,682 | ||||||
Louisville & Jefferson County, KY, Metropolitan Government Healthcare Systems Rev. (Norton Healthcare, Inc.), 5.25%, 10/01/36 | 640,000 | 646,394 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Anne Arundel Health System, Inc.), 5%, 7/01/40 | 1,000,000 | 1,030,590 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Anne Arundel Health System, Inc.), “A”, 6.75%, 7/01/39 | 1,000,000 | 1,169,030 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Calvert Health Systems), 5.5%, 7/01/14 (c) | $ | 1,000,000 | $ | 1,013,070 | ||||
Maryland Health & Higher Educational Facilities Authority Rev. (Carroll Hospital), “A”, 5%, 7/01/37 | 1,000,000 | 1,026,360 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Doctors Community Hospital), “A”, 5%, 7/01/29 | 750,000 | 706,403 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Frederick Memorial Hospital), “A”, 4%, 7/01/38 | 1,000,000 | 839,280 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Johns Hopkins Health System), “A”, 5%, 5/15/26 | 250,000 | 280,458 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Lifebridge Health), ASSD GTY, 4.75%, 7/01/38 | 965,000 | 971,273 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Lifebridge Health), 4.75%, 7/01/39 | 590,000 | 591,717 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Medlantic/Helix Parent, Inc.), “A”, AGM, 5.25%, 8/15/38 | 1,000,000 | 1,115,020 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Medstar Health), 5.5%, 8/15/33 | 635,000 | 642,372 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Medstar Health), “A”, 5%, 8/15/41 | 505,000 | 515,191 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Mercy Medical Center), “A”, 5.5%, 7/01/42 | 750,000 | 758,805 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Peninsula Regional Medical Center), 5%, 7/01/36 | 1,000,000 | 1,013,050 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Suburban Hospital), “A”, 5.5%, 7/01/16 | 1,000,000 | 1,011,440 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Union Hospital of Cecil County Issue), 5%, 7/01/35 | 500,000 | 503,200 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (University of Maryland Medical System), AMBAC, 5%, 7/01/31 | 645,000 | 677,360 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (University of Maryland Medical System), “A”, 5%, 7/01/41 | 500,000 | 504,610 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Washington County Hospital), 5.75%, 1/01/38 | 500,000 | 505,310 | ||||||
Maryland Industrial Development Authority, Economic Development Rev., RIBS, FRN, AGM, 11.295%, 8/26/22 (p) | 1,050,000 | 1,237,961 |
35
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Montgomery County, MD, Rev. (Trinity Health Corp.), 5%, 12/01/40 | $ | 1,000,000 | $ | 1,040,580 | ||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6%, 10/01/27 | 480,000 | 515,669 | ||||||
Richmond, IN, Hospital Authority Rev. (Reid Hospital), “A”, 6.5%, 1/01/29 | 415,000 | 450,254 | ||||||
$ | 21,019,685 | |||||||
Healthcare Revenue - Long Term Care - 1.8% | ||||||||
Gaithersburg, MD, Economic Development Rev. (Asbury Maryland Obligated Group), “A”, 5.125%, 1/01/36 | $ | 400,000 | $ | 390,992 | ||||
Maryland Health & Higher Educational Facilities Authority Rev. (Charlestown Community), 6.25%, 1/01/41 | 750,000 | 795,998 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (King Farm Presbyterian Community), “A”, 5.3%, 1/01/37 | 300,000 | 284,418 | ||||||
Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7%, 11/01/30 | 55,000 | 61,164 | ||||||
Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7.125%, 11/01/40 | 85,000 | 93,516 | ||||||
$ | 1,626,088 | |||||||
Healthcare Revenue - Other - 0.8% | ||||||||
Maryland Economic Development Corp., Economic Development Rev. (Lutheran World Relief Refugee), 5.25%, 4/01/19 | $ | 140,000 | $ | 151,043 | ||||
Maryland Economic Development Corp., Economic Development Rev. (Lutheran World Relief Refugee), 5.25%, 4/01/29 | 565,000 | 581,046 | ||||||
$ | 732,089 | |||||||
Industrial Revenue - Other - 0.6% | ||||||||
Maryland Economic Development Corp., Pollution Control Rev. (CNX Marine Terminals, Inc.), 5.75%, 9/01/25 | $ | 500,000 | $ | 529,030 | ||||
Industrial Revenue - Paper - 0.1% | ||||||||
Valparaiso, IN, Exempt Facilities Rev. (Pratt Paper LLC Project), 7%, 1/01/44 | $ | 100,000 | $ | 106,299 | ||||
Miscellaneous Revenue - Other - 2.6% | ||||||||
Harford County, MD, Economic Development Rev. (Battelle Memorial Institute Project), 5.25%, 4/01/34 | $ | 1,600,000 | $ | 1,604,976 | ||||
Indiana Finance Authority Rev., (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/40 | 105,000 | 104,839 | ||||||
Indiana Finance Authority Rev., (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/44 | 160,000 | 157,778 | ||||||
Miami-Dade County, FL, Special Obligation, “B”, 5%, 10/01/35 | 120,000 | 126,012 |
Issuer | Shares/Par | Value ($) | ||||||
Miscellaneous Revenue - Other - continued | ||||||||
New York, NY, Industrial Development Agency, Airport Facilities Rev. (Transportation Infrastructure Properties LLC), 5%, 7/01/28 | $ | 450,000 | $ | 457,263 | ||||
$ | 2,450,868 | |||||||
Multi-Family Housing Revenue - 4.1% | ||||||||
Maryland Community Development Administration, Department of Housing & Community Development, “A”, 5.05%, 7/01/47 | $ | 1,000,000 | $ | 1,005,390 | ||||
Maryland Community Development Administration, Department of Housing & Community Development, “B”, FNMA, 5%, 1/01/39 | 500,000 | 502,700 | ||||||
Montgomery County, MD, Housing Opportunities Commission, Multifamily & Reconstruction Development Rev., “D”, 3.25%, 7/01/37 | 1,500,000 | 1,240,635 | ||||||
Montgomery County, MD, Housing Opportunities Commission, Multifamily Rev., 5.125%, 7/01/37 | 1,000,000 | 1,036,380 | ||||||
$ | 3,785,105 | |||||||
Parking - 1.5% | ||||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Johns Hopkins Medical Institutions), AMBAC, 5%, 7/01/34 | $ | 1,385,000 | $ | 1,385,402 | ||||
Port Revenue - 0.6% | ||||||||
Maryland Economic Development Corp. Rev. (Port America Chesapeake Terminal Project), “B”, 5.75%, 6/01/35 | $ | 550,000 | $ | 565,466 | ||||
Sales & Excise Tax Revenue - 1.1% | ||||||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6%, 1/15/41 | $ | 435,000 | $ | 457,450 | ||||
Guam Government Business Privilege Tax Rev., “A”, 5.25%, 1/01/36 | 260,000 | 269,173 | ||||||
Guam Government Business Privilege Tax Rev., “C”, 5%, 11/15/16 | 80,000 | 87,807 | ||||||
Guam Government Business Privilege Tax Rev., “C”, 5%, 11/15/17 | 90,000 | 100,608 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “A”, 5.5%, 8/01/19 (c) | 5,000 | 6,040 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “C”, 5%, 8/01/40 | 145,000 | 118,833 | ||||||
$ | 1,039,911 | |||||||
Single Family Housing - State - 3.0% | ||||||||
Maryland Community Development Administration, Department of Housing & Community Development, 5%, 9/01/34 | $ | 1,500,000 | $ | 1,527,840 | ||||
Maryland Community Development Administration, Department of Housing & Community Development, “A”, 5.875%, 7/01/16 | 150,000 | 150,168 |
36
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Single Family Housing - State - continued | ||||||||
Maryland Community Development Administration, Department of Housing & Community Development, “I”, 6%, 3/01/41 | $ | 125,000 | $ | 126,040 | ||||
Montgomery County, MD, Housing Opportunities Commission (Single Family Mortgage Rev.), “B”, 4.55%, 7/01/26 | 1,000,000 | 1,002,600 | ||||||
$ | 2,806,648 | |||||||
State & Agency - Other - 3.4% | ||||||||
Howard County, MD, COP, “A”, 8%, 8/15/19 | $ | 805,000 | $ | 1,080,721 | ||||
Howard County, MD, COP, “B”, 8%, 8/15/19 | 385,000 | 516,866 | ||||||
Howard County, MD, COP, “B”, 8.15%, 2/15/21 | 450,000 | 626,373 | ||||||
Howard County, MD, COP, “C”, 8%, 8/15/19 | 680,000 | 912,907 | ||||||
$ | 3,136,867 | |||||||
State & Local Agencies - 2.7% | ||||||||
FYI Properties Lease Rev. (Washington State Project), 5.5%, 6/01/34 | $ | 370,000 | $ | 399,567 | ||||
Los Angeles, CA, Municipal Improvement Corp. Lease Rev. (Real Property), “E”, 6%, 9/01/39 | 180,000 | 203,233 | ||||||
Maryland Department of Transportation, Port Administration Facilities Project, AMBAC, 5.25%, 6/15/20 | 1,690,000 | 1,809,094 | ||||||
Massachusetts College Building Authority Rev., “A”, 5%, 5/01/31 | 110,000 | 123,462 | ||||||
$ | 2,535,356 | |||||||
Tax - Other - 1.3% | ||||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/24 | $ | 325,000 | $ | 343,372 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/29 | 45,000 | 47,090 | ||||||
Virgin Islands Public Finance Authority Rev., Matching Fund Loan Note, “A”, 5%, 10/01/29 | 520,000 | 534,794 | ||||||
Virgin Islands Public Finance Authority Rev., Matching Fund Loan Note, “A”, 6%, 10/01/39 | 285,000 | 286,981 | ||||||
$ | 1,212,237 | |||||||
Tax Assessment - 3.9% | ||||||||
Anne Arundel County, MD, Special Obligation (National Business Park-North Project), 6.1%, 7/01/40 | $ | 350,000 | $ | 367,150 | ||||
Anne Arundel County, MD, Special Obligation (VLG South Waugh Chapel Project), 6.25%, 7/01/40 | 300,000 | 315,606 | ||||||
Baltimore, MD, Special Obligation, (East Baltimore Research Park Project), “A”, 7%, 9/01/38 | 400,000 | 423,192 | ||||||
Brunswick, MD, Special Obligation (Brunswick Crossing Special Taxing), 5.5%, 7/01/36 | 244,000 | 212,644 | ||||||
Frederick County, MD, Special Obligation (Urbana Community Development Authority), “A”, 5%, 7/01/40 | 1,500,000 | 1,532,145 | ||||||
Howard County, MD, Special Obligation (Annapolis Junction Town Center Project), 6.1%, 2/15/44 | 230,000 | 230,656 |
Issuer | Shares/Par | Value ($) | ||||||
Tax Assessment - continued | ||||||||
Prince George’s County, MD, Special Obligation (National Harbor Project), 5.2%, 7/01/34 | $ | 500,000 | $ | 497,480 | ||||
$ | 3,578,873 | |||||||
Tobacco - 1.6% | ||||||||
Illinois Railsplitter Tobacco Settlement Authority, 6%, 6/01/28 | $ | 215,000 | $ | 242,389 | ||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.75%, 6/01/34 | 165,000 | 124,616 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 5%, 6/01/41 | 930,000 | 699,769 | ||||||
New Jersey Tobacco Settlement Financing Corp., Capital Appreciation, “1-B”, 0%, 6/01/41 | 1,280,000 | 308,557 | ||||||
New Jersey Tobacco Settlement Financing Corp., Capital Appreciation, “1-C”, 0%, 6/01/41 | 15,000 | 3,560 | ||||||
Virgin Islands Tobacco Settlement Financing Corp., 5%, 5/15/21 | 130,000 | 129,999 | ||||||
$ | 1,508,890 | |||||||
Transportation - Special Tax - 3.2% | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., AGM, 5.25%, 7/01/33 | $ | 1,365,000 | $ | 1,298,238 | ||||
Maryland Department of Transportation Consolidated Transportation, 5%, 12/01/19 | 1,000,000 | 1,184,490 | ||||||
Washington, DC, Metropolitan Area Transit Authority Gross Rev., “A”, 5.125%, 7/01/32 | 485,000 | 527,035 | ||||||
$ | 3,009,763 | |||||||
Universities - Colleges - 7.2% | ||||||||
Annapolis, MD, Economic Development Rev. (St. John’s College), 5.5%, 10/01/18 | $ | 110,000 | $ | 110,173 | ||||
Maryland Health & Higher Educational Facilities Authority Rev. (Goucher College), 5.375%, 7/01/14 (c) | 500,000 | 506,380 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Goucher College), “A”, 5%, 7/01/34 | 500,000 | 531,900 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Johns Hopkins University), “A”, 5%, 7/01/37 | 1,500,000 | 1,642,965 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Maryland Institute College of Art), 5%, 6/01/30 | 750,000 | 760,530 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Notre Dame College), 5%, 10/01/35 | 1,000,000 | 1,012,710 | ||||||
Morgan State University, Academic & Auxiliary Facilities Fees Rev., NATL, 6.05%, 7/01/15 | 650,000 | 675,376 | ||||||
Morgan State University, Academic & Auxiliary Facilities Fees Rev., 5%, 7/01/30 | 150,000 | 165,083 | ||||||
Morgan State University, Academic & Auxiliary Facilities Fees Rev., 5%, 7/01/32 | 440,000 | 479,648 | ||||||
New Jersey Educational Facilities Authority Rev. (University of Medicine & Dentistry), “B”, ETM, 6%, 12/01/17 (c) | 480,000 | 555,830 |
37
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
Puerto Rico Industrial, Tourist, Educational, Medical, & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.125%, 4/01/32 | $ | 30,000 | $ | 24,533 | ||||
Puerto Rico Industrial, Tourist, Educational, Medical, & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.375%, 4/01/42 | 135,000 | 106,853 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical, & Environmental Control Facilities Financing Authority, Higher Education Rev. (International American University of Puerto Rico Project), 5%, 10/01/31 | 85,000 | 75,784 | ||||||
$ | 6,647,765 | |||||||
Universities - Dormitories - 3.9% | ||||||||
Maryland Economic Development Corp., Student Housing Rev. (Salisbury University Project), 5%, 6/01/27 | $ | 500,000 | $ | 509,700 | ||||
Maryland Economic Development Corp., Student Housing Rev. (Salisbury University Project), 5%, 6/01/30 | 300,000 | 301,779 | ||||||
University System of Maryland, Auxiliary Facility & Tuition Rev., “D”, 5%, 10/01/22 | 2,350,000 | 2,807,028 | ||||||
$ | 3,618,507 | |||||||
Universities - Secondary Schools - 0.8% | ||||||||
La Vernia, TX, Higher Education Finance Corp. Rev. (Lifeschool of Dallas), “A”, 7.5%, 8/15/41 | $ | 265,000 | $ | 298,491 | ||||
Maryland Industrial Development Financing Authority, Economic Development Authority Rev. (Our Lady of Good Council), “A”, 6%, 5/01/35 | 400,000 | 424,828 | ||||||
$ | 723,319 | |||||||
Utilities - Investor Owned - 1.0% | ||||||||
Maryland Economic Development Corp., Pollution Control Rev. (Potomac Electric Power Co.), 6.2%, 9/01/22 | $ | 500,000 | $ | 583,730 | ||||
Michigan Strategic Fund Ltd. Obligation Rev. (Detroit Edison Co.), 5.5%, 8/01/29 (b) | 275,000 | 301,727 | ||||||
$ | 885,457 | |||||||
Utilities - Municipal Owned - 0.2% | ||||||||
Long Island, NY, Power Authority, Electric Systems Rev., “A”, 6%, 5/01/33 | $ | 185,000 | $ | 208,817 |
Issuer | Shares/Par | Value ($) | ||||||
Utilities - Other - 1.4% | ||||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/19 | $ | 400,000 | $ | 449,520 | ||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/21 | 195,000 | 217,640 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/22 | 100,000 | 111,726 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/23 | 140,000 | 157,464 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “C”, 5%, 2/01/21 | 235,000 | 261,207 | ||||||
Texas Gas Acquisition & Supply Corp III., Gas Supply Rev., 5%, 12/15/31 | 55,000 | 55,888 | ||||||
$ | 1,253,445 | |||||||
Water & Sewer Utility Revenue - 10.0% | ||||||||
Baltimore, MD, Subordinate Refunding Rev. (Mayor and City Council of Baltimore Water Projects), “C”, 5%, 7/01/27 | $ | 1,015,000 | $ | 1,165,951 | ||||
Baltimore, MD, Rev., LEVRRS, FRN, NATL, 10.903%, 7/01/20 (p) | 3,000,000 | 3,785,250 | ||||||
Baltimore, MD, Wastewater Rev. Project, “A”, NATL, 5.65%, 7/01/20 | 2,000,000 | 2,261,760 | ||||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 5%, 7/01/33 | 695,000 | 465,907 | ||||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 5.125%, 7/01/37 | 85,000 | 57,644 | ||||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 6%, 7/01/44 | 295,000 | 217,917 | ||||||
Mississippi Development Bank Special Obligation (City of Jackson Water and Sewer System Rev. Bond Project), AGM, 6.875%, 12/01/40 | 50,000 | 62,840 | ||||||
Montgomery County, MD, Water Quality Protection Charge Rev., “A”, 5%, 4/01/32 | 1,125,000 | 1,234,647 | ||||||
$ | 9,251,916 | |||||||
Total Municipal Bonds (Identified Cost, $86,469,945) | $ | 89,632,620 | ||||||
Money Market Funds - 1.6% | ||||||||
MFS Institutional Money Market Portfolio, 0.09%, at Cost and Net Asset Value (v) | 1,522,303 | $ | 1,522,303 | |||||
Total Investments (Identified Cost, $87,992,248) | $ | 91,154,923 | ||||||
Other Assets, Less Liabilities - 1.6% | 1,459,935 | |||||||
Net Assets - 100.0% | $ | 92,614,858 |
See Portfolio Footnotes and Notes to Financial Statements
38
Table of Contents
PORTFOLIO OF INVESTMENTS
3/31/14
MFS MASSACHUSETTS MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
Municipal Bonds - 98.5% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
General Obligations - General Purpose - 9.2% | ||||||||
Boston, MA, “B”, 4%, 4/01/19 | $ | 2,000,000 | $ | 2,257,220 | ||||
Boston, MA, “B”, 4%, 4/01/21 | 1,870,000 | 2,112,988 | ||||||
Commonwealth of Massachusetts, “B”, 5.25%, 8/01/23 | 1,000,000 | 1,218,210 | ||||||
Commonwealth of Massachusetts, “B”, 5.25%, 8/01/28 | 2,225,000 | 2,722,799 | ||||||
Commonwealth of Massachusetts, “C”, NATL, 5.5%, 12/01/19 | 4,000,000 | 4,828,960 | ||||||
Commonwealth of Massachusetts, “C”, AMBAC, 5%, 8/01/32 | 4,815,000 | 5,180,940 | ||||||
Guam Government, “A”, 6.75%, 11/15/29 | 685,000 | 725,504 | ||||||
Guam Government, “A”, 5.25%, 11/15/37 | 395,000 | 358,743 | ||||||
Guam Government, “A”, 7%, 11/15/39 | 75,000 | 79,439 | ||||||
Memphis, TN, Refunding General Improvement, “B”, 5%, 4/01/31 | 295,000 | 332,312 | ||||||
State of California, 6%, 11/01/39 | 1,555,000 | 1,821,667 | ||||||
$ | 21,638,782 | |||||||
Healthcare Revenue - Hospitals - 11.7% | ||||||||
Brazoria County, TX, Health Facilities Development Corp., Hospital Rev. (Brazosport Regional Health System), 5.25%, 7/01/32 | $ | 680,000 | $ | 633,828 | ||||
Escambia County, FL, Health Facilities Authority (Baptist Hospital, Inc.), “A”, 6%, 8/15/36 | 1,315,000 | 1,393,203 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.25%, 7/01/31 | 235,000 | 256,373 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.375%, 7/01/41 | 935,000 | 1,019,954 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6.375%, 6/01/40 | 745,000 | 797,463 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6.5%, 3/01/45 | 520,000 | 558,600 | ||||||
Louisville & Jefferson County, KY, Metropolitan Government Healthcare Systems Rev. (Norton Healthcare, Inc.), 5.25%, 10/01/36 | 1,180,000 | 1,191,788 | ||||||
Massachusetts Development Finance Agency Rev. (Milford Regional Medical Center), “F”, 5.75%, 7/15/43 | 1,000,000 | 1,044,500 | ||||||
Massachusetts Development Finance Agency Rev. (Tufts Medical Center), “I”, 7.25%, 1/01/32 | 1,000,000 | 1,183,240 | ||||||
Massachusetts Development Finance Agency Rev. (UMass Memorial Medical Center, Inc.), “H”, 5.5%, 7/01/31 | 1,000,000 | 1,017,230 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Bay State Medical Center), “I”, 5.75%, 7/01/36 | 500,000 | 542,615 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Massachusetts Health & Educational Facilities Authority Rev. (Caregroup, Inc.), 5.125%, 7/01/38 | $ | 2,000,000 | $ | 2,052,340 | ||||
Massachusetts Health & Educational Facilities Authority Rev. (Children’s Hospital), “M”, 5.25%, 12/01/39 | 1,500,000 | 1,587,825 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Children’s Hospital), “M”, 5.5%, 12/01/39 | 1,000,000 | 1,090,590 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Jordan Hospital), “D”, 5.25%, 10/01/18 | 1,085,000 | 1,085,803 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Lahey Clinic), “D”, 5.25%, 8/15/37 | 1,550,000 | 1,619,332 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Partners Healthcare System), “G”, 5%, 7/01/32 | 2,000,000 | 2,115,700 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Partners Healthcare System), “J-1”, 5%, 7/01/39 | 2,000,000 | 2,088,840 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Partners Healthcare System), “J1”, 5%, 7/01/34 | 1,375,000 | 1,462,120 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (South Shore), 5.625%, 7/01/19 | 520,000 | 521,024 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Southcoast Health Obligation), “D”, 5%, 7/01/29 | 1,000,000 | 1,034,390 | ||||||
Miami-Dade County, FL, Health Facilities Authority Hospital Rev. (Variety Children’s Hospital), “A”, 6%, 8/01/30 | 430,000 | 479,158 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6.125%, 10/01/39 | 655,000 | 685,864 | ||||||
New Hampshire Business Finance Authority Rev. (Huggins Hospital), 6.875%, 10/01/39 | 35,000 | 36,967 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 6.75%, 7/01/29 | 165,000 | 184,607 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 7%, 7/01/39 | 395,000 | 434,638 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (ProHealth Care, Inc. Obligated Group), 6.625%, 2/15/39 | 1,355,000 | 1,503,847 | ||||||
$ | 27,621,839 | |||||||
Healthcare Revenue - Long Term Care - 1.3% | ||||||||
Massachusetts Development Finance Agency Rev. (Adventcare), “A”, 6.75%, 10/15/37 | $ | 500,000 | $ | 515,285 |
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Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Long Term Care - continued | ||||||||
Massachusetts Development Finance Agency Rev. (Carleton-Willard Village), 5.625%, 12/01/30 | $ | 525,000 | $ | 549,386 | ||||
Massachusetts Development Finance Agency Rev. (Linden Ponds, Inc.), “A-1”, 6.25%, 11/15/39 | 352,582 | 295,393 | ||||||
Massachusetts Development Finance Agency Rev. (Linden Ponds, Inc.), “A-2”, 5.5%, 11/15/46 | 18,820 | 13,409 | ||||||
Massachusetts Development Finance Agency Rev. (Linden Ponds, Inc.), Capital Appreciation, “B”, 0%, 11/15/56 | 93,608 | 586 | ||||||
Massachusetts Development Finance Agency Rev. (Loomis Communities), “A”, 6%, 1/01/33 | 500,000 | 508,790 | ||||||
Massachusetts Development Finance Agency Rev. (North Hill Communities), “A”, 6.5%, 11/15/43 | 1,000,000 | 998,600 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), “A”, 7.25%, 9/15/29 | 20,000 | 21,943 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), “A”, 7.625%, 9/15/39 | 130,000 | 142,981 | ||||||
$ | 3,046,373 | |||||||
Healthcare Revenue - Other - 0.9% | ||||||||
Massachusetts Health & Educational Facilities Authority Rev. (Dana Faber Cancer Institute), “K”, 5%, 12/01/37 | $ | 2,000,000 | $ | 2,068,700 | ||||
Human Services - 0.5% | ||||||||
Massachusetts Development Finance Agency Rev. (Evergreen Center, Inc.), 5.5%, 1/01/35 | $ | 1,200,000 | $ | 1,169,472 | ||||
Industrial Revenue - Airlines - 0.8% | ||||||||
Massachusetts Port Authority Rev., Special Facilities (U.S. Airways), NATL, 5.875%, 9/01/16 | $ | 1,900,000 | $ | 1,900,893 | ||||
Industrial Revenue - Environmental Services - 0.9% | ||||||||
Massachusetts Development Finance Agency Rev. (Waste Management, Inc.), FRN, 5.5%, 5/01/27 (b) | $ | 750,000 | $ | 752,933 | ||||
Massachusetts Development Finance Agency, Resource Recovery Rev. (Covanta Energy Project), “C”, 5.25%, 11/01/42 | 1,535,000 | 1,495,489 | ||||||
$ | 2,248,422 | |||||||
Miscellaneous Revenue - Other - 8.1% | ||||||||
Martha’s Vineyard, MA, Land Bank Rev., AMBAC, 5%, 5/01/29 | $ | 785,000 | $ | 787,386 | ||||
Massachusetts Development Finance Agency Rev., 5.5%, 9/01/20 | 1,205,000 | 1,386,594 | ||||||
Massachusetts Development Finance Agency Rev. (The Broad Institute, Inc.), “A”, 5.25%, 4/01/37 | 2,000,000 | 2,143,660 |
Issuer | Shares/Par | Value ($) | ||||||
Miscellaneous Revenue - Other - continued | ||||||||
Massachusetts Health & Educational Facilities Authority Rev., 5.5%, 6/01/34 | $ | 1,500,000 | $ | 1,653,630 | ||||
Massachusetts Health & Educational Facilities Authority Rev. (The Sterling & Francine Clark Art Institute), “B”, 5%, 7/01/30 | 3,500,000 | 3,806,355 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (The Sterling & Francine Clark Art Institute), “B”, 5%, 7/01/40 | 1,700,000 | 1,802,663 | ||||||
Massachusetts Port Authority Facilities Rev. (Boston Fuel Project), FGIC, 5%, 7/01/24 | 2,000,000 | 2,150,920 | ||||||
Massachusetts Port Authority Facilities Rev. (Conrac Project), “A”, 5.125%, 7/01/41 | 3,000,000 | 3,156,270 | ||||||
New York Liberty Development Corp. Liberty Rev., (7 World Trade Center Project), 5%, 9/15/40 | 2,185,000 | 2,340,179 | ||||||
$ | 19,227,657 | |||||||
Multi-Family Housing Revenue - 6.9% | ||||||||
Massachusetts Development Finance Agency Rev. (Credit Housing-Chelsea Homes), “I-A”, LOC, 5%, 12/15/24 | $ | 1,185,000 | $ | 1,190,013 | ||||
Massachusetts Development Finance Agency Rev. (Morville House Apartments), “A”, LOC, 4.95%, 12/15/23 | 2,500,000 | 2,501,500 | ||||||
Massachusetts Housing Finance Agency Rev., “A”, FHA, 5.25%, 12/01/35 | 1,000,000 | 1,037,180 | ||||||
Massachusetts Housing Finance Agency Rev., “A”, 5.25%, 12/01/48 | 1,000,000 | 1,003,160 | ||||||
Massachusetts Housing Finance Agency Rev., “C”, 5.35%, 12/01/49 | 1,680,000 | 1,739,539 | ||||||
Massachusetts Housing Finance Agency Rev., “F”, 3.45%, 12/01/37 | 1,000,000 | 830,260 | ||||||
Massachusetts Housing Finance Agency Rev., “F”, 5.125%, 12/01/34 | 720,000 | 723,686 | ||||||
Massachusetts Housing Finance Agency Rev., “P”, 5%, 12/01/23 | 1,240,000 | 1,240,707 | ||||||
Massachusetts Housing Finance Agency Rev., “P”, 5.2%, 12/01/45 | 1,445,000 | 1,445,014 | ||||||
Massachusetts Housing Finance Agency, “B”, 5.25%, 12/01/30 | 1,700,000 | 1,753,992 | ||||||
Massachusetts Housing Finance Agency, Multi-Family Housing, “A”, FHA, 4.75%, 12/01/30 | 1,425,000 | 1,517,383 | ||||||
Massachusetts Housing Finance Agency, Multi-Family Housing, “A”, FHA, 4.875%, 12/01/32 | 1,190,000 | 1,267,945 | ||||||
$ | 16,250,379 | |||||||
Parking - 1.4% | ||||||||
Boston, MA, Metropolitan Transit Parking Corp., Systemwide Parking Rev., 5.25%, 7/01/36 | $ | 3,000,000 | $ | 3,255,240 | ||||
Sales & Excise Tax Revenue - 5.5% | ||||||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6%, 1/15/41 | $ | 985,000 | $ | 1,035,836 |
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Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Sales & Excise Tax Revenue - continued | ||||||||
Massachusetts Bay Transportation Authority, Sales Tax Rev., “A”, 5%, 7/01/24 | $ | 1,590,000 | $ | 1,923,248 | ||||
Massachusetts Bay Transportation Authority, Sales Tax Rev., “A-1”, 5.25%, 7/01/29 | 1,850,000 | 2,251,968 | ||||||
Massachusetts Bay Transportation Authority, Sales Tax Rev., “A-1”, 5.25%, 7/01/31 | 2,000,000 | 2,386,800 | ||||||
Massachusetts Bay Transportation Authority, Sales Tax Rev., Capital Appreciation, 0%, 7/01/34 | 4,000,000 | 1,570,440 | ||||||
Massachusetts School Building Authority, Dedicated Sales Tax Rev., AMBAC, 4.75%, 8/15/32 | 2,000,000 | 2,077,380 | ||||||
Massachusetts School Building Authority, Dedicated Sales Tax Rev., “A”, AMBAC, 4.5%, 8/15/35 | 950,000 | 968,981 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “A”, 5.5%, 8/01/19 (c) | 10,000 | 12,081 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “C”, 5%, 8/01/40 | 360,000 | 295,034 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “C”, 5.25%, 8/01/40 | 485,000 | 412,226 | ||||||
$ | 12,933,994 | |||||||
Single Family Housing - State - 1.4% | ||||||||
Massachusetts Housing Finance Agency, Single Family Housing Rev., “157”, 4.35%, 12/01/27 | $ | 695,000 | $ | 702,645 | ||||
Massachusetts Housing Finance Agency, Single Family Housing Rev., “162”, 3.15%, 12/01/32 | 2,000,000 | 1,760,420 | ||||||
Massachusetts Housing Finance Agency, Single Family Housing Rev., “162”, 3.45%, 12/01/37 | 1,000,000 | 881,280 | ||||||
$ | 3,344,345 | |||||||
State & Agency - Other - 0.6% | ||||||||
Massachusetts Development Finance Agency Rev. (Visual & Performing Arts Project), 6%, 8/01/15 | $ | 1,235,000 | $ | 1,327,341 | ||||
State & Local Agencies - 6.0% | ||||||||
Delaware Valley, PA, Regional Finance Authority, “C”, FRN, 0.908%, 6/01/37 | $ | 1,370,000 | $ | 933,176 | ||||
Massachusetts College Building Authority Project Rev., Capital Appreciation, “A”, SYNCORA, 0%, 5/01/22 | 8,310,000 | 6,632,959 | ||||||
Massachusetts College Building Authority Rev., “A”, 5%, 5/01/31 | 275,000 | 308,655 | ||||||
Massachusetts State College, Building Authority Project Rev., “A”, 5%, 5/01/32 | 760,000 | 849,239 | ||||||
Massachusetts State College, Building Authority Project Rev., “A”, 5.5%, 5/01/49 | 1,680,000 | 1,817,962 | ||||||
University of Kentucky, General Receipts, “A”, 5%, 4/01/36 | 160,000 | 176,824 | ||||||
University of Kentucky, General Receipts, “A”, 5%, 4/01/37 | 295,000 | 324,984 | ||||||
University of Massachusetts Building Authority Project Rev., “1”, 5%, 11/01/39 | 3,000,000 | 3,243,090 | ||||||
$ | 14,286,889 |
Issuer | Shares/Par | Value ($) | ||||||
Student Loan Revenue - 4.4% | ||||||||
Massachusetts Educational Financing Authority, “J”, 5.625%, 7/01/29 | $ | 1,910,000 | $ | 2,017,266 | ||||
Massachusetts Educational Financing Authority, Education Loan Rev., “E”, AMBAC, 5%, 1/01/15 | 20,000 | 20,075 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “H”, ASSD GTY, 6.35%, 1/01/30 | 1,505,000 | 1,593,449 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “I”, 6%, 1/01/28 | 1,025,000 | 1,108,989 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “I-A”, 5.5%, 1/01/22 | 3,000,000 | 3,298,140 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “I-A”, 5.15%, 1/01/26 | 1,420,000 | 1,505,228 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “I-A”, 5.2%, 1/01/27 | 680,000 | 718,964 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “Issue E”, AMBAC, 5.3%, 1/01/16 | 45,000 | 45,144 | ||||||
$ | 10,307,255 | |||||||
Tax - Other - 1.2% | ||||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/24 | $ | 260,000 | $ | 274,698 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/29 | 85,000 | 88,948 | ||||||
Massachusetts Special Obligation Dedicated Tax Rev., NATL, 5.5%, 1/01/23 | 1,585,000 | 1,870,348 | ||||||
Virgin Islands Public Finance Authority Rev. (Diageo), “A”, 6.625%, 10/01/29 | 600,000 | 643,050 | ||||||
$ | 2,877,044 | |||||||
Tobacco - 2.0% | ||||||||
Buckeye, OH, Tobacco Settlement Financing Authority, “A-2”, 5.875%, 6/01/47 | $ | 190,000 | $ | 152,973 | ||||
Children’s Trust Fund, Tobacco Settlement Rev., Puerto Rico, 5.5%, 5/15/39 | 400,000 | 358,944 | ||||||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A-1”, 5.75%, 6/01/47 | 250,000 | 201,555 | ||||||
Illinois Railsplitter Tobacco Settlement Authority, 6%, 6/01/28 | 1,335,000 | 1,505,066 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.75%, 6/01/34 | 330,000 | 249,233 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 5%, 6/01/41 | 1,990,000 | 1,497,356 | ||||||
New Jersey Tobacco Settlement Financing Corp., Capital Appreciation, “1-B”, 0%, 6/01/41 | 3,250,000 | 783,445 | ||||||
New Jersey Tobacco Settlement Financing Corp., Capital Appreciation, “1-C”, 0%, 6/01/41 | 45,000 | 10,679 | ||||||
$ | 4,759,251 |
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Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Toll Roads - 1.8% | ||||||||
Massachusetts Department of Transportation, Metropolitan Highway System Rev., “B”, 5%, 1/01/15 | $ | 1,500,000 | $ | 1,551,690 | ||||
Massachusetts Department of Transportation, Metropolitan Highway System Rev., “B”, 5%, 1/01/32 | 2,600,000 | 2,752,620 | ||||||
$ | 4,304,310 | |||||||
Transportation - Special Tax - 2.9% | ||||||||
Commonwealth of Massachusetts Highway Grant Anticipation, “A”, 5%, 6/15/22 | $ | 1,500,000 | $ | 1,798,560 | ||||
Commonwealth of Massachusetts Transportation Fund Rev. (Accelerated Bridge Program), “A”, 5%, 6/01/23 | 4,000,000 | 4,850,600 | ||||||
Massachusetts Bay Transportation Authority, Sales Tax Rev., ETM, “C”, 5.5%, 7/01/16 (c) | 200,000 | 222,576 | ||||||
$ | 6,871,736 | |||||||
Universities - Colleges - 20.8% | ||||||||
Illinois Finance Authority Rev. (Roosevelt University Project), 6.25%, 4/01/29 | $ | 2,005,000 | $ | 2,067,817 | ||||
Massachusetts Development Finance Agency Higher Education Rev. (Emerson College), “A”, 5%, 1/01/23 | 1,750,000 | 1,810,148 | ||||||
Massachusetts Development Finance Agency Rev. (Boston College), “R-1”, 5%, 7/01/24 | 3,950,000 | 4,466,265 | ||||||
Massachusetts Development Finance Agency Rev. (Boston University), “V-1”, 5%, 10/01/29 | 2,165,000 | 2,381,673 | ||||||
Massachusetts Development Finance Agency Rev. (Hampshire College), 5.7%, 10/01/34 | 1,000,000 | 1,005,460 | ||||||
Massachusetts Development Finance Agency Rev. (New England Conservatory of Music), 5.25%, 7/01/38 | 2,000,000 | 2,042,500 | ||||||
Massachusetts Development Finance Agency Rev. (Simmons College), SYNCORA, 5.25%, 10/01/26 | 2,250,000 | 2,464,088 | ||||||
Massachusetts Development Finance Agency Rev. (Suffolk University), 5.125%, 7/01/40 | 1,000,000 | 1,004,960 | ||||||
Massachusetts Development Finance Agency Rev. (Wheelock College), “C”, 5.25%, 10/01/37 | 1,500,000 | 1,522,920 | ||||||
Massachusetts Development Finance Agency Rev. (Williams College), “P”, 5%, 7/01/43 | 3,000,000 | 3,273,360 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Berklee College of Music), “A”, 5%, 10/01/27 | 905,000 | 976,160 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Berklee College of Music), “A”, 5%, 10/01/37 | 2,000,000 | 2,097,860 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Boston College), 5.5%, 6/01/27 | 1,735,000 | 2,106,568 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Harvard University), 5.5%, 11/15/36 | 1,500,000 | 1,731,105 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Lesley University), “A”, ASSD GTY, 5.25%, 7/01/39 | 1,000,000 | 1,058,060 |
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
Massachusetts Health & Educational Facilities Authority Rev. (Massachusetts Institute of Technology) “M”, 5.25%, 7/01/21 | $ | 4,000,000 | $ | 4,860,520 | ||||
Massachusetts Health & Educational Facilities Authority Rev. (Massachusetts Institute of Technology), “A”, 5%, 7/01/38 | 750,000 | 820,568 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Massachusetts Institute of Technology), “I-1”, 5.2%, 1/01/28 | 1,000,000 | 1,243,690 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Northeastern University), “A”, 5%, 10/01/35 | 1,500,000 | 1,570,200 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Simmons College), 8%, 10/01/15 (c) | 205,000 | 228,848 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Simmons College), 8%, 10/01/29 | 295,000 | 318,836 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Stonehill College), MSQLF, 4.875%, 7/01/27 | 250,000 | 266,573 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Stonehill College), 5%, 7/01/28 | 640,000 | 683,072 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Stonehill College), 5%, 7/01/29 | 300,000 | 318,420 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Suffolk University), “A”, 6.25%, 7/01/30 | 2,000,000 | 2,178,280 | ||||||
Massachusetts State College, Building Authority Project Rev., “A”, 5%, 5/01/29 | 2,000,000 | 2,251,400 | ||||||
Pinellas County, FL, Educational Facilities Authority Rev. (Barry University), 6%, 10/01/41 | 295,000 | 312,494 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical, & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.125%, 4/01/32 | 110,000 | 89,953 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical, & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.375%, 4/01/42 | 370,000 | 292,855 | ||||||
Puerto Rico Industrial, Tourist, Medical, & Environmental Central Facilities (University of Sacred Heart), 4.375%, 10/01/31 | 75,000 | 58,184 | ||||||
Puerto Rico Industrial, Tourist, Medical, & Environmental Central Facilities (University of Sacred Heart), 5%, 10/01/42 | 35,000 | 26,373 | ||||||
University of Massachusetts Building Authority Project Rev., “1”, 5%, 11/01/19 | 3,000,000 | 3,533,400 | ||||||
$ | 49,062,610 |
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Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Universities - Secondary Schools - 3.6% | ||||||||
La Vernia, TX, Higher Education Finance Corp. Rev. (Lifeschool of Dallas), “A”, 7.5%, 8/15/41 | $ | 665,000 | $ | 749,043 | ||||
Massachusetts Development Finance Agency Rev. (Belmont Hill School), 4.375%, 9/01/17 (c) | 1,080,000 | 1,208,110 | ||||||
Massachusetts Development Finance Agency Rev. (Belmont Hill School), 4.5%, 9/01/17 (c) | 1,000,000 | 1,122,810 | ||||||
Massachusetts Development Finance Agency Rev. (Dexter School), 4.75%, 5/01/32 | 1,130,000 | 1,132,520 | ||||||
Massachusetts Development Finance Agency Rev. (Dexter School), 5%, 5/01/37 | 2,000,000 | 2,007,840 | ||||||
Massachusetts Development Finance Agency Rev. (Foxborough Regional Charter School), “A”, 6.375%, 7/01/30 | 970,000 | 1,063,605 | ||||||
Massachusetts Development Finance Agency Rev. (Milton Academy), “A”, 5%, 9/01/28 | 1,000,000 | 1,104,780 | ||||||
$ | 8,388,708 | |||||||
Utilities - Investor Owned - 0.5% | ||||||||
Massachusetts Development Finance Agency, Solid Waste Disposal Rev. (Dominion Energy Brayton), 5.75%, 5/01/19 (c) | $ | 1,000,000 | $ | 1,214,670 | ||||
Utilities - Municipal Owned - 0.3% | ||||||||
Guam Power Authority Rev., “A”, 5.5%, 10/01/30 | $ | 590,000 | $ | 622,904 | ||||
Utilities - Other - 1.0% | ||||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/19 | $ | 805,000 | $ | 904,659 | ||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/21 | 405,000 | 452,021 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/22 | 210,000 | 234,625 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “C”, 5%, 2/01/21 | 480,000 | 533,530 | ||||||
Texas Gas Acquisition & Supply Corp III., Gas Supply Rev., 5%, 12/15/31 | 160,000 | 162,584 | ||||||
$ | 2,287,419 |
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - 4.8% | ||||||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 5.125%, 7/01/37 | $ | 220,000 | $ | 149,195 | ||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 6%, 7/01/38 | 2,000,000 | 1,496,140 | ||||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 6%, 7/01/44 | 120,000 | 88,644 | ||||||
Guam Government Waterworks Authority, Water & Wastewater System Rev., 5.625%, 7/01/40 | 305,000 | 315,916 | ||||||
Massachusetts Water Pollution Abatement Trust, 5.25%, 8/01/27 | 1,280,000 | 1,564,377 | ||||||
Massachusetts Water Pollution Abatement Trust, 5.25%, 8/01/33 | 2,000,000 | 2,382,180 | ||||||
Massachusetts Water Pollution Abatement Trust (MWRA Program), “A”, 5%, 8/01/32 | 75,000 | 75,199 | ||||||
Massachusetts Water Pollution Abatement Trust, “10”, 5%, 8/01/29 | 160,000 | 162,034 | ||||||
Massachusetts Water Pollution Abatement Trust, “10”, 5%, 8/01/34 | 145,000 | 146,692 | ||||||
Massachusetts Water Pollution Abatement Trust, “15A”, 5%, 8/01/20 | 1,400,000 | 1,666,770 | ||||||
Massachusetts Water Resouces Authority, General Rev., “B”, 5.25%, 8/01/30 | 620,000 | 742,878 | ||||||
Massachusetts Water Resources Authority, “B”, AGM, 5.25%, 8/01/29 | 595,000 | 715,321 | ||||||
Massachusetts Water Resources Authority, General Rev., “B”, AGM, 5.25%, 8/01/31 | 1,625,000 | 1,947,319 | ||||||
$ | 11,452,665 | |||||||
Total Municipal Bonds (Identified Cost, $217,366,420) | $ | 232,468,898 | ||||||
Money Market Funds - 1.0% | ||||||||
MFS Institutional Money Market Portfolio, 0.09%, at Cost and Net Asset Value (v) | 2,528,691 | $ | 2,528,691 | |||||
Total Investments (Identified Cost, $219,895,111) | $ | 234,997,589 | ||||||
Other Assets, Less Liabilities - 0.5% | 1,074,890 | |||||||
Net Assets - 100.0% | $ | 236,072,479 |
See Portfolio Footnotes and Notes to Financial Statements
Portfolio Footnotes:
(b) | Mandatory tender date is earlier than stated maturity date. |
(c) | Refunded bond. |
(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 for the MFS California Municipal Bond Fund was $750,068, representing 0.3% of net assets. |
(p) | Primary inverse floater. |
(v) | Underlying affiliated fund 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. |
43
Table of Contents
Portfolio of Investments – continued
The following abbreviations are used in this report and are defined:
COP | Certificate of Participation | |||||
ETM | Escrowed to Maturity | |||||
FRN | Floating Rate Note. Interest rate resets periodically and may not be the rate reported at period end. | |||||
LOC | Letter of Credit | |||||
Insurers | Inverse Floaters | |||||
AGM | Assured Guaranty Municipal | LEVRRS | Leveraged Reverse Rate Security | |||
AMBAC | AMBAC Indemnity Corp. | RIBS | Residual Interest Bonds | |||
ASSD GTY | Assured Guaranty Insurance Co. | |||||
BHAC | Berkshire Hathaway Assurance Corp. | |||||
CALHF | California Health Construction Loan Insurance | |||||
FGIC | Financial Guaranty Insurance Co. | |||||
FHA | Federal Housing Administration | |||||
FNMA | Federal National Mortgage Assn. | |||||
GNMA | Government National Mortgage Assn. | |||||
MSQLF | Michigan Student Qualified Loan Fund | |||||
NATL | National Public Finance Guarantee Corp. | |||||
SYNCORA | Syncora Guarantee Inc. | |||||
XLCA | XL Capital Insurance Co. |
See Notes to Financial Statements
44
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES
At 3/31/14
These statements represent each fund’s balance sheet, which details the assets and liabilities comprising the total value of each fund.
Alabama Fund | Arkansas Fund | California Fund | ||||||||||
Assets | ||||||||||||
Investments – | ||||||||||||
Non-affiliated issuers, at identified cost | $48,876,645 | $175,137,594 | $247,377,555 | |||||||||
Underlying affiliated funds, at cost and net asset value | 977,768 | 376,083 | 1,557,972 | |||||||||
Total investments, at identified cost | $49,854,413 | $175,513,677 | $248,935,527 | |||||||||
Unrealized appreciation (depreciation) | 2,550,163 | 2,431,275 | 13,357,763 | |||||||||
Total investments, at value | $52,404,576 | $177,944,952 | $262,293,290 | |||||||||
Receivables for | ||||||||||||
Investments sold | 760,000 | 242,925 | — | |||||||||
Fund shares sold | 515,889 | 243,683 | 269,607 | |||||||||
Interest | 655,171 | 2,462,007 | 3,437,026 | |||||||||
Receivable from investment adviser | 11,438 | — | — | |||||||||
Other assets | 468 | 1,127 | 1,523 | |||||||||
Total assets | $54,347,542 | $180,894,694 | $266,001,446 | |||||||||
Liabilities | ||||||||||||
Payables for | ||||||||||||
Distributions | $32,610 | $61,159 | $193,743 | |||||||||
Investments purchased | 263,565 | 382,680 | — | |||||||||
Fund shares reacquired | 37,024 | 418,446 | 442,591 | |||||||||
Payable to affiliates | ||||||||||||
Investment adviser | — | 8,799 | 12,899 | |||||||||
Shareholder servicing costs | 38,857 | 117,138 | 158,795 | |||||||||
Distribution and service fees | 1,455 | 4,345 | 6,790 | |||||||||
Payable for independent Trustees’ compensation | 3,924 | 3,772 | 10,343 | |||||||||
Accrued expenses and other liabilities | 60,939 | 74,794 | 78,088 | |||||||||
Total liabilities | $438,374 | $1,071,133 | $903,249 | |||||||||
Net assets | $53,909,168 | $179,823,561 | $265,098,197 | |||||||||
Net assets consist of | ||||||||||||
Paid-in capital | $53,035,025 | $182,495,436 | $263,618,604 | |||||||||
Unrealized appreciation (depreciation) on investments | 2,550,163 | 2,431,275 | 13,357,763 | |||||||||
Accumulated net realized gain (loss) on investments | (1,702,725 | ) | (5,152,843 | ) | (11,942,994 | ) | ||||||
Undistributed net investment income | 26,705 | 49,693 | 64,824 | |||||||||
Net assets | $53,909,168 | $179,823,561 | $265,098,197 |
45
Table of Contents
Statements of Assets and Liabilities – continued
Alabama Fund | Arkansas Fund | California Fund | ||||||||||
Net assets | ||||||||||||
Class A | $53,245,257 | $172,590,000 | $232,450,743 | |||||||||
Class B | 663,911 | 7,233,561 | 3,975,792 | |||||||||
Class C | — | — | 28,671,662 | |||||||||
Total net assets | $53,909,168 | $179,823,561 | $265,098,197 | |||||||||
Shares of beneficial interest outstanding | ||||||||||||
Class A | 5,267,671 | 17,868,258 | 40,471,915 | |||||||||
Class B | 65,673 | 748,198 | 692,078 | |||||||||
Class C | — | — | 4,974,901 | |||||||||
Total shares of beneficial interest outstanding | 5,333,344 | 18,616,456 | 46,138,894 | |||||||||
Class A shares | ||||||||||||
Net asset value per share | ||||||||||||
(net assets/shares of beneficial interest outstanding) | $10.11 | $9.66 | $5.74 | |||||||||
Offering price per share (100 / 95.25 × net asset value per share) | $10.61 | $10.14 | $6.03 | |||||||||
Class B shares | ||||||||||||
Net asset value and offering price per share | ||||||||||||
(net assets/shares of beneficial interest outstanding) | $10.11 | $9.67 | $5.74 | |||||||||
Class C shares | ||||||||||||
Net asset value and offering price per share | ||||||||||||
(net assets/shares of beneficial interest outstanding) | $— | $— | $5.76 |
On sales of $50,000 or more, the maximum offering price of Class A shares is reduced. A contingent deferred sales charge may be imposed on redemptions of Class A, Class B, and Class C shares.
See Notes to Financial Statements
46
Table of Contents
Statements of Assets and Liabilities – continued
At 3/31/14 | Georgia Fund | Maryland Fund | Massachusetts Fund | |||||||||
Assets | ||||||||||||
Investments – | ||||||||||||
Non-affiliated issuers, at identified cost | $56,991,108 | $86,469,945 | $217,366,420 | |||||||||
Underlying affiliated funds, at cost and net asset value | 983,637 | 1,522,303 | 2,528,691 | |||||||||
Total investments, at identified cost | $57,974,745 | $87,992,248 | $219,895,111 | |||||||||
Unrealized appreciation (depreciation) | 2,393,862 | 3,162,675 | 15,102,478 | |||||||||
Total investments, at value | $60,368,607 | $91,154,923 | $234,997,589 | |||||||||
Receivables for | ||||||||||||
Investments sold | 965,527 | 813,731 | — | |||||||||
Fund shares sold | 21,196 | 8,088 | 127,623 | |||||||||
Interest | 773,533 | 1,228,341 | 3,171,152 | |||||||||
Receivable from investment adviser | 3,207 | — | — | |||||||||
Other assets | 520 | 798 | 1,435 | |||||||||
Total assets | $62,132,590 | $93,205,881 | $238,297,799 | |||||||||
Liabilities | ||||||||||||
Payables for | ||||||||||||
Distributions | $29,704 | $68,334 | $148,472 | |||||||||
Investments purchased | 1,087,410 | 312,843 | 1,297,218 | |||||||||
Fund shares reacquired | 133,107 | 67,639 | 461,734 | |||||||||
Payable to affiliates | ||||||||||||
Investment adviser | — | 4,437 | 11,507 | |||||||||
Shareholder servicing costs | 38,654 | 60,444 | 223,961 | |||||||||
Distribution and service fees | 1,608 | 2,177 | — | |||||||||
Payable for independent Trustees’ compensation | 4,425 | 6,913 | 6,876 | |||||||||
Accrued expenses and other liabilities | 66,879 | 68,236 | 75,552 | |||||||||
Total liabilities | $1,361,787 | $591,023 | $2,225,320 | |||||||||
Net assets | $60,770,803 | $92,614,858 | $236,072,479 | |||||||||
Net assets consist of | ||||||||||||
Paid-in capital | $60,213,886 | $92,368,614 | $229,095,122 | |||||||||
Unrealized appreciation (depreciation) on investments | 2,393,862 | 3,162,675 | 15,102,478 | |||||||||
Accumulated net realized gain (loss) on investments | (1,828,122 | ) | (3,096,323 | ) | (8,171,749 | ) | ||||||
Accumulated undistributed (distributions in excess of) net investment income | (8,823 | ) | 179,892 | 46,628 | ||||||||
Net assets | $60,770,803 | $92,614,858 | $236,072,479 |
47
Table of Contents
Statements of Assets and Liabilities – continued
Georgia Fund | Maryland Fund | Massachusetts Fund | ||||||||||
Net assets | ||||||||||||
Class A | $59,068,387 | $90,416,547 | $232,262,700 | |||||||||
Class B | 1,702,416 | 2,198,311 | 3,809,779 | |||||||||
Total net assets | $60,770,803 | $92,614,858 | $236,072,479 | |||||||||
Shares of beneficial interest outstanding | ||||||||||||
Class A | 5,583,267 | 8,403,941 | 21,273,213 | |||||||||
Class B | 160,320 | 204,422 | 348,345 | |||||||||
Total shares of beneficial interest outstanding | 5,743,587 | 8,608,363 | 21,621,558 | |||||||||
Class A shares | ||||||||||||
Net asset value per share | ||||||||||||
(net assets/shares of beneficial interest outstanding) | $10.58 | $10.76 | $10.92 | |||||||||
Offering price per share (100 / 95.25 × net asset value per share) | $11.11 | $11.30 | $11.46 | |||||||||
Class B shares | ||||||||||||
Net asset value and offering price per share | ||||||||||||
(net assets/shares of beneficial interest outstanding) | $10.62 | $10.75 | $10.94 |
On sales of $50,000 or more, the maximum offering price of Class A shares is reduced. A contingent deferred sales charge may be imposed on redemptions of Class A and Class B shares.
See Notes to Financial Statements
48
Table of Contents
STATEMENTS OF OPERATIONS
Year ended 3/31/14
These statements describe how much each fund earned in investment income and accrued in expenses. They also describe any gains or losses generated by each fund’s operations.
Alabama Fund | Arkansas Fund | California Fund | ||||||||||
Net investment income | ||||||||||||
Interest | $2,895,300 | $8,690,416 | $13,883,916 | |||||||||
Dividends from underlying affiliated funds | 989 | 3,970 | 5,018 | |||||||||
Total investment income | $2,896,289 | $8,694,386 | $13,888,934 | |||||||||
Expenses | ||||||||||||
Management fee | $267,793 | $926,762 | $1,277,690 | |||||||||
Distribution and service fees | 155,040 | 574,914 | 975,283 | |||||||||
Shareholder servicing costs | 46,123 | 178,952 | 238,029 | |||||||||
Administrative services fee | 18,659 | 36,165 | 45,464 | |||||||||
Independent Trustees’ compensation | 2,684 | 8,253 | 9,551 | |||||||||
Custodian fee | 21,395 | 42,898 | 49,023 | |||||||||
Shareholder communications | 6,099 | 13,486 | 16,213 | |||||||||
Audit and tax fees | 51,045 | 51,065 | 51,076 | |||||||||
Legal fees | 11,006 | 8,039 | 15,259 | |||||||||
Registration fees | 34,384 | 31,945 | 42,460 | |||||||||
Miscellaneous | 17,389 | 28,161 | 27,942 | |||||||||
Total expenses | $631,617 | $1,900,640 | $2,747,990 | |||||||||
Fees paid indirectly | (2 | ) | — | (6 | ) | |||||||
Reduction of expenses by investment adviser and distributor | (72,232 | ) | (311,436 | ) | (387,430 | ) | ||||||
Net expenses | $559,383 | $1,589,204 | $2,360,554 | |||||||||
Net investment income | $2,336,906 | $7,105,182 | $11,528,380 | |||||||||
Realized and unrealized gain (loss) on investments | ||||||||||||
Realized gain (loss) on investments (identified cost basis) | $(1,291,394 | ) | $(6,145,404 | ) | $(6,580,403 | ) | ||||||
Change in unrealized appreciation (depreciation) on investments | $(2,765,716 | ) | $(7,949,456 | ) | $(10,945,135 | ) | ||||||
Net realized and unrealized gain (loss) on investments | $(4,057,110 | ) | $(14,094,860 | ) | $(17,525,538 | ) | ||||||
Change in net assets from operations | $(1,720,204 | ) | $(6,989,678 | ) | $(5,997,158 | ) |
See Notes to Financial Statements
49
Table of Contents
Statements of Operations – continued
Year ended 3/31/14 | Georgia Fund | Maryland Fund | Massachusetts Fund | |||||||||
Net investment income | ||||||||||||
Interest | $3,199,719 | $4,899,163 | $12,073,593 | |||||||||
Dividends from underlying affiliated funds | 1,636 | 3,042 | 5,104 | |||||||||
Total investment income | $3,201,355 | $4,902,205 | $12,078,697 | |||||||||
Expenses | ||||||||||||
Management fee | $321,351 | $459,586 | $1,169,071 | |||||||||
Distribution and service fees | 193,438 | 276,351 | 682,256 | |||||||||
Shareholder servicing costs | 54,496 | 79,982 | 213,571 | |||||||||
Administrative services fee | 20,079 | 23,743 | 42,590 | |||||||||
Independent Trustees’ compensation | 2,742 | 4,658 | 9,373 | |||||||||
Custodian fee | 29,897 | 30,444 | 48,559 | |||||||||
Shareholder communications | 7,007 | 9,684 | 14,194 | |||||||||
Audit and tax fees | 51,045 | 51,050 | 51,073 | |||||||||
Legal fees | 5,695 | 11,208 | 8,226 | |||||||||
Registration fees | 30,032 | 31,995 | 33,110 | |||||||||
Miscellaneous | 22,648 | 21,922 | 28,892 | |||||||||
Total expenses | $738,430 | $1,000,623 | $2,300,915 | |||||||||
Fees paid indirectly | (1 | ) | (4 | ) | (5 | ) | ||||||
Reduction of expenses by investment adviser and distributor | (46,386 | ) | (13,317 | ) | (55,766 | ) | ||||||
Net expenses | $692,043 | $987,302 | $2,245,144 | |||||||||
Net investment income | $2,509,312 | $3,914,903 | $9,833,553 | |||||||||
Realized and unrealized gain (loss) on investments | ||||||||||||
Realized gain (loss) on investments (identified cost basis) | $(1,621,074 | ) | $(2,982,507 | ) | $(9,192,820 | ) | ||||||
Change in unrealized appreciation (depreciation) on investments | $(3,092,440 | ) | $(4,526,336 | ) | $(10,687,743 | ) | ||||||
Net realized and unrealized gain (loss) on investments | $(4,713,514 | ) | $(7,508,843 | ) | $(19,880,563 | ) | ||||||
Change in net assets from operations | $(2,204,202 | ) | $(3,593,940 | ) | $(10,047,010 | ) |
See Notes to Financial Statements
50
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
These statements describe the increases and/or decreases in net assets resulting from operations, any distributions, and any shareholder transactions.
Year ended 3/31/14 | Alabama Fund | Arkansas Fund | California Fund | |||||||||
Change in net assets | ||||||||||||
From operations | ||||||||||||
Net investment income | $2,336,906 | $7,105,182 | $11,528,380 | |||||||||
Net realized gain (loss) on investments | (1,291,394 | ) | (6,145,404 | ) | (6,580,403 | ) | ||||||
Net unrealized gain (loss) on investments | (2,765,716 | ) | (7,949,456 | ) | (10,945,135 | ) | ||||||
Change in net assets from operations | $(1,720,204 | ) | $(6,989,678 | ) | $(5,997,158 | ) | ||||||
Distributions declared to shareholders | ||||||||||||
From net investment income | $(2,269,574 | ) | $(6,926,655 | ) | $(11,173,911 | ) | ||||||
Change in net assets from fund share transactions | $(13,666,080 | ) | $(48,205,717 | ) | $(46,394,411 | ) | ||||||
Total change in net assets | $(17,655,858 | ) | $(62,122,050 | ) | $(63,565,480 | ) | ||||||
Net assets | ||||||||||||
At beginning of period | 71,565,026 | 241,945,611 | 328,663,677 | |||||||||
At end of period | $53,909,168 | $179,823,561 | $265,098,197 | |||||||||
Undistributed net investment income included in net assets at end of period | $26,705 | $49,693 | $64,824 | |||||||||
Year ended 3/31/14 | Georgia Fund | Maryland Fund | Massachusetts Fund | |||||||||
Change in net assets | ||||||||||||
From operations | ||||||||||||
Net investment income | $2,509,312 | $3,914,903 | $9,833,553 | |||||||||
Net realized gain (loss) on investments | (1,621,074 | ) | (2,982,507 | ) | (9,192,820 | ) | ||||||
Net unrealized gain (loss) on investments | (3,092,440 | ) | (4,526,336 | ) | (10,687,743 | ) | ||||||
Change in net assets from operations | $(2,204,202 | ) | $(3,593,940 | ) | $(10,047,010 | ) | ||||||
Distributions declared to shareholders | ||||||||||||
From net investment income | $(2,410,842 | ) | $(3,744,433 | ) | $(9,474,128 | ) | ||||||
Change in net assets from fund share transactions | $(17,331,927 | ) | $(14,282,334 | ) | $(46,396,367 | ) | ||||||
Total change in net assets | $(21,946,971 | ) | $(21,620,707 | ) | $(65,917,505 | ) | ||||||
Net assets | ||||||||||||
At beginning of period | 82,717,774 | 114,235,565 | 301,989,984 | |||||||||
At end of period | $60,770,803 | $92,614,858 | $236,072,479 | |||||||||
Accumulated undistributed (distributions in excess of) net investment income included in net assets at end of period | $(8,823 | ) | $179,892 | $46,628 |
See Notes to Financial Statements
51
Table of Contents
Statements of Changes in Net Assets – continued
Year ended 3/31/13 | Alabama Fund | Arkansas Fund | California Fund | |||||||||
Change in net assets | ||||||||||||
From operations | ||||||||||||
Net investment income | $2,688,361 | $8,454,600 | $12,352,175 | |||||||||
Net realized gain (loss) on investments | 221,161 | 543,680 | 2,828,772 | |||||||||
Net unrealized gain (loss) on investments | 1,052,995 | 317,806 | 7,922,149 | |||||||||
Change in net assets from operations | $3,962,517 | $9,316,086 | $23,103,096 | |||||||||
Distributions declared to shareholders | ||||||||||||
From net investment income | $(2,587,536 | ) | $(8,079,772 | ) | $(11,992,142 | ) | ||||||
Change in net assets from fund share transactions | $(1,522,773 | ) | $18,224,694 | $1,015,019 | ||||||||
Total change in net assets | $(147,792 | ) | $19,461,008 | $12,125,973 | ||||||||
Net assets | ||||||||||||
At beginning of period | 71,712,818 | 222,484,603 | 316,537,704 | |||||||||
At end of period | $71,565,026 | $241,945,611 | $328,663,677 | |||||||||
Accumulated undistributed (distributions in excess of) net investment income included in net assets at end of period | $27,686 | $(40,533 | ) | $72,246 | ||||||||
Year ended 3/31/13 | Georgia Fund | Maryland Fund | Massachusetts Fund | |||||||||
Change in net assets | ||||||||||||
From operations | ||||||||||||
Net investment income | $2,663,282 | $4,524,136 | $11,007,416 | |||||||||
Net realized gain (loss) on investments | 74,187 | 210,272 | 1,309,831 | |||||||||
Net unrealized gain (loss) on investments | 1,242,105 | 664,751 | 3,752,443 | |||||||||
Change in net assets from operations | $3,979,574 | $5,399,159 | $16,069,690 | |||||||||
Distributions declared to shareholders | ||||||||||||
From net investment income | $(2,539,962 | ) | $(4,088,801 | ) | $(10,410,844 | ) | ||||||
Change in net assets from fund share transactions | $10,233,705 | $1,780,645 | $1,798,812 | |||||||||
Total change in net assets | $11,673,317 | $3,091,003 | $7,457,658 | |||||||||
Net assets | ||||||||||||
At beginning of period | 71,044,457 | 111,144,562 | 294,532,326 | |||||||||
At end of period | $82,717,774 | $114,235,565 | $301,989,984 | |||||||||
Undistributed net investment income included in net assets at end of period | $8,137 | $92,920 | $82,433 |
See Notes to Financial Statements
52
Table of Contents
FINANCIAL HIGHLIGHTS
MFS ALABAMA MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund financial performance for the past 5 years. Certain information reflects financial results for a single fund share. The total returns in the table represent the rate by which an investor would have earned (or lost) on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
Years ended 3/31 | ||||||||||||||||||||
Class A | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Net asset value, beginning of period | $10.70 | $10.50 | $9.72 | $10.25 | $9.60 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.40 | $0.40 | $0.41 | $0.42 | $0.44 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.60 | ) | 0.19 | 0.77 | (0.54 | ) | 0.72 | |||||||||||||
Total from investment operations | $(0.20 | ) | $0.59 | $1.18 | $(0.12 | ) | $1.16 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.39 | ) | $(0.39 | ) | $(0.40 | ) | $(0.41 | ) | $(0.42 | ) | ||||||||||
From net realized gain on investments | — | — | — | (0.00 | )(w) | (0.09 | ) | |||||||||||||
Total distributions declared to shareholders | $(0.39 | ) | $(0.39 | ) | $(0.40 | ) | $(0.41 | ) | $(0.51 | ) | ||||||||||
Net asset value, end of period (x) | $10.11 | $10.70 | $10.50 | $9.72 | $10.25 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (1.83 | ) | 5.63 | 12.30 | (1.21 | ) | 12.25 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.05 | 0.96 | 0.99 | 0.97 | 0.97 | |||||||||||||||
Expenses after expense reductions (f) | 0.93 | 0.93 | 0.93 | 0.93 | 0.93 | |||||||||||||||
Net investment income | 3.94 | 3.74 | 4.01 | 4.12 | 4.33 | |||||||||||||||
Portfolio turnover | 15 | 10 | 21 | 20 | 27 | |||||||||||||||
Net assets at end of period (000 omitted) | $53,245 | $70,432 | $69,887 | $70,582 | $78,842 |
See Notes to Financial Statements
53
Table of Contents
Financial Highlights – continued
MFS ALABAMA MUNICIPAL BOND FUND – continued
Years ended 3/31 | ||||||||||||||||||||
Class B | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Net asset value, beginning of period | $10.70 | $10.50 | $9.72 | $10.24 | $9.60 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.32 | $0.32 | $0.33 | $0.34 | $0.36 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.60 | ) | 0.19 | 0.77 | (0.52 | ) | 0.72 | |||||||||||||
Total from investment operations | $(0.28 | ) | $0.51 | $1.10 | $(0.18 | ) | $1.08 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.31 | ) | $(0.31 | ) | $(0.32 | ) | $(0.34 | ) | $(0.35 | ) | ||||||||||
From net realized gain on investments | — | — | — | (0.00 | )(w) | (0.09 | ) | |||||||||||||
Total distributions declared to shareholders | $(0.31 | ) | $(0.31 | ) | $(0.32 | ) | $(0.34 | ) | $(0.44 | ) | ||||||||||
Net asset value, end of period (x) | $10.11 | $10.70 | $10.50 | $9.72 | $10.24 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (2.56 | ) | 4.85 | 11.47 | (1.84 | ) | 11.31 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.80 | 1.71 | 1.74 | 1.72 | 1.72 | |||||||||||||||
Expenses after expense reductions (f) | 1.68 | 1.68 | 1.68 | 1.68 | 1.68 | |||||||||||||||
Net investment income | 3.18 | 2.99 | 3.28 | 3.37 | 3.60 | |||||||||||||||
Portfolio turnover | 15 | 10 | 21 | 20 | 27 | |||||||||||||||
Net assets at end of period (000 omitted) | $664 | $1,133 | $1,826 | $3,179 | $5,477 |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(w) | Per share amount was less than $0.01. |
(x) | The net asset values per share 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. |
See Notes to Financial Statements
54
Table of Contents
Financial Highlights – continued
MFS ARKANSAS MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund financial performance for the past 5 years. Certain information reflects financial results for a single fund share. The total returns in the table represent the rate by which an investor would have earned (or lost) on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
Years ended 3/31 | ||||||||||||||||||||
Class A | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Net asset value, beginning of period | $10.23 | $10.17 | $9.49 | $9.95 | $9.43 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.34 | $0.37 | $0.38 | $0.41 | $0.42 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.58 | ) | 0.05 | 0.68 | (0.47 | ) | 0.53 | |||||||||||||
Total from investment operations | $(0.24 | ) | $0.42 | $1.06 | $(0.06 | ) | $0.95 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.33 | ) | $(0.36 | ) | $(0.38 | ) | $(0.40 | ) | $(0.41 | ) | ||||||||||
From net realized gain on investments | — | — | — | (0.00 | )(w) | (0.02 | ) | |||||||||||||
Total distributions declared to shareholders | $(0.33 | ) | $(0.36 | ) | $(0.38 | ) | $(0.40 | ) | $(0.43 | ) | ||||||||||
Net asset value, end of period (x) | $9.66 | $10.23 | $10.17 | $9.49 | $9.95 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (2.32 | ) | 4.10 | 11.34 | (0.62 | ) | 10.17 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 0.89 | 0.86 | 0.87 | 0.87 | 0.84 | |||||||||||||||
Expenses after expense reductions (f) | 0.74 | 0.71 | 0.72 | 0.72 | 0.74 | |||||||||||||||
Net investment income | 3.48 | 3.59 | 3.86 | 4.20 | 4.32 | |||||||||||||||
Portfolio turnover | 19 | 16 | 12 | 20 | 9 | |||||||||||||||
Net assets at end of period (000 omitted) | $172,590 | $232,510 | $213,736 | $178,685 | $179,094 |
See Notes to Financial Statements
55
Table of Contents
Financial Highlights – continued
MFS ARKANSAS MUNICIPAL BOND FUND – continued
Years ended 3/31 | ||||||||||||||||||||
Class B | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Net asset value, beginning of period | $10.24 | $10.18 | $9.50 | $9.96 | $9.44 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.26 | $0.29 | $0.31 | $0.33 | $0.35 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.58 | ) | 0.04 | 0.67 | (0.47 | ) | 0.52 | |||||||||||||
Total from investment operations | $(0.32 | ) | $0.33 | $0.98 | $(0.14 | ) | $0.87 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.25 | ) | $(0.27 | ) | $(0.30 | ) | $(0.32 | ) | $(0.33 | ) | ||||||||||
From net realized gain on investments | — | — | — | (0.00 | )(w) | (0.02 | ) | |||||||||||||
Total distributions declared to shareholders | $(0.25 | ) | $(0.27 | ) | $(0.30 | ) | $(0.32 | ) | $(0.35 | ) | ||||||||||
Net asset value, end of period (x) | $9.67 | $10.24 | $10.18 | $9.50 | $9.96 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (3.06 | ) | 3.29 | 10.47 | (1.43 | ) | 9.30 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.64 | 1.61 | 1.62 | 1.62 | 1.59 | |||||||||||||||
Expenses after expense reductions (f) | 1.51 | 1.50 | 1.49 | 1.53 | 1.52 | |||||||||||||||
Net investment income | 2.71 | 2.80 | 3.08 | 3.37 | 3.53 | |||||||||||||||
Portfolio turnover | 19 | 16 | 12 | 20 | 9 | |||||||||||||||
Net assets at end of period (000 omitted) | $7,234 | $9,435 | $8,749 | $7,816 | $8,129 |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(w) | Per share amount was less than $0.01. |
(x) | The net asset values per share 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. |
See Notes to Financial Statements
56
Table of Contents
Financial Highlights – continued
MFS CALIFORNIA MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund financial performance for the past 5 years. Certain information reflects financial results for a single fund share. The total returns in the table represent the rate by which an investor would have earned (or lost) on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
Years ended 3/31 | ||||||||||||||||||||
Class A | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Net asset value, beginning of period | $6.05 | $5.84 | $5.23 | $5.56 | $5.15 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.24 | $0.23 | $0.24 | $0.26 | $0.26 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.32 | ) | 0.21 | 0.61 | (0.34 | ) | 0.41 | |||||||||||||
Total from investment operations | $(0.08 | ) | $0.44 | $0.85 | $(0.08 | ) | $0.67 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.23 | ) | $(0.23 | ) | $(0.24 | ) | $(0.25 | ) | $(0.26 | ) | ||||||||||
Net asset value, end of period (x) | $5.74 | $6.05 | $5.84 | $5.23 | $5.56 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (1.20 | ) | 7.59 | 16.48 | (1.53 | ) | 13.11 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 0.87 | 0.85 | 0.86 | 0.85 | 0.81 | |||||||||||||||
Expenses after expense reductions (f) | 0.72 | 0.70 | 0.71 | 0.70 | 0.71 | |||||||||||||||
Net investment income | 4.17 | 3.90 | 4.26 | 4.79 | 4.78 | |||||||||||||||
Portfolio turnover | 26 | 20 | 35 | 24 | 31 | |||||||||||||||
Net assets at end of period (000 omitted) | $232,451 | $288,367 | $277,271 | $263,306 | $324,093 | |||||||||||||||
Years ended 3/31 | ||||||||||||||||||||
Class B | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Net asset value, beginning of period | $6.05 | $5.84 | $5.23 | $5.57 | $5.15 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.19 | $0.19 | $0.20 | $0.22 | $0.22 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.31 | ) | 0.20 | 0.60 | (0.35 | ) | 0.41 | |||||||||||||
Total from investment operations | $(0.12 | ) | $0.39 | $0.80 | $(0.13 | ) | $0.63 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.19 | ) | $(0.18 | ) | $(0.19 | ) | $(0.21 | ) | $(0.21 | ) | ||||||||||
Net asset value, end of period (x) | $5.74 | $6.05 | $5.84 | $5.23 | $5.57 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (1.96 | ) | 6.75 | 15.60 | (2.46 | ) | 12.47 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.62 | 1.60 | 1.61 | 1.60 | 1.56 | |||||||||||||||
Expenses after expense reductions (f) | 1.49 | 1.48 | 1.47 | 1.47 | 1.47 | |||||||||||||||
Net investment income | 3.40 | 3.12 | 3.51 | 4.01 | 4.03 | |||||||||||||||
Portfolio turnover | 26 | 20 | 35 | 24 | 31 | |||||||||||||||
Net assets at end of period (000 omitted) | $3,976 | $5,176 | $5,640 | $6,769 | $13,866 |
See Notes to Financial Statements
57
Table of Contents
Financial Highlights – continued
MFS CALIFORNIA MUNICIPAL BOND FUND – continued
Years ended 3/31 | ||||||||||||||||||||
Class C | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Net asset value, beginning of period | $6.07 | $5.86 | $5.25 | $5.58 | $5.16 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.19 | $0.18 | $0.19 | $0.21 | $0.21 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.32 | ) | 0.20 | 0.61 | (0.34 | ) | 0.42 | |||||||||||||
Total from investment operations | $(0.13 | ) | $0.38 | $0.80 | $(0.13 | ) | $0.63 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.18 | ) | $(0.17 | ) | $(0.19 | ) | $(0.20 | ) | $(0.21 | ) | ||||||||||
Net asset value, end of period (x) | $5.76 | $6.07 | $5.86 | $5.25 | $5.58 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (2.08 | ) | 6.60 | 15.38 | (2.41 | ) | 12.27 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.62 | 1.60 | 1.61 | 1.60 | 1.60 | |||||||||||||||
Expenses after expense reductions (f) | 1.62 | 1.60 | 1.61 | 1.60 | 1.60 | |||||||||||||||
Net investment income | 3.26 | 2.99 | 3.34 | 3.87 | 3.85 | |||||||||||||||
Portfolio turnover | 26 | 20 | 35 | 24 | 31 | |||||||||||||||
Net assets at end of period (000 omitted) | $28,672 | $35,120 | $33,626 | $30,393 | $37,810 |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(x) | Total returns have been calculated on net asset values which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
See Notes to Financial Statements
58
Table of Contents
Financial Highlights – continued
MFS GEORGIA MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund financial performance for the past 5 years. Certain information reflects financial results for a single fund share. The total returns in the table represent the rate by which an investor would have earned (or lost) on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
Years ended 3/31 | ||||||||||||||||||||
Class A | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Net asset value, beginning of period | $11.18 | $10.96 | $10.08 | $10.59 | $9.99 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.38 | $0.38 | $0.41 | $0.44 | $0.45 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.62 | ) | 0.21 | 0.88 | (0.52 | ) | 0.62 | |||||||||||||
Total from investment operations | $(0.24 | ) | $0.59 | $1.29 | $(0.08 | ) | $1.07 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.36 | ) | $(0.37 | ) | $(0.41 | ) | $(0.43 | ) | $(0.44 | ) | ||||||||||
From net realized gain on investments | — | — | — | — | (0.03 | ) | ||||||||||||||
Total distributions declared to shareholders | $(0.36 | ) | $(0.37 | ) | $(0.41 | ) | $(0.43 | ) | $(0.47 | ) | ||||||||||
Net asset value, end of period (x) | $10.58 | $11.18 | $10.96 | $10.08 | $10.59 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (2.09 | ) | 5.38 | 12.98 | (0.84 | ) | 10.84 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.01 | 0.96 | 1.02 | 1.02 | 1.03 | |||||||||||||||
Expenses after expense reductions (f) | 0.95 | 0.95 | 0.95 | 0.98 | 1.00 | |||||||||||||||
Net investment income | 3.54 | 3.41 | 3.89 | 4.16 | 4.26 | |||||||||||||||
Portfolio turnover | 15 | 14 | 19 | 22 | 16 | |||||||||||||||
Net assets at end of period (000 omitted) | $59,068 | $80,336 | $69,093 | $57,878 | $63,964 |
See Notes to Financial Statements
59
Table of Contents
Financial Highlights – continued
MFS GEORGIA MUNICIPAL BOND FUND – continued
Years ended 3/31 | ||||||||||||||||||||
Class B | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Net asset value, beginning of period | $11.22 | $11.00 | $10.12 | $10.63 | $10.02 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.29 | $0.30 | $0.33 | $0.36 | $0.37 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.61 | ) | 0.20 | 0.88 | (0.52 | ) | 0.63 | |||||||||||||
Total from investment operations | $(0.32 | ) | $0.50 | $1.21 | $(0.16 | ) | $1.00 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.28 | ) | $(0.28 | ) | $(0.33 | ) | $(0.35 | ) | $(0.36 | ) | ||||||||||
From net realized gain on investments | — | — | — | — | (0.03 | ) | ||||||||||||||
Total distributions declared to shareholders | $(0.28 | ) | $(0.28 | ) | $(0.33 | ) | $(0.35 | ) | $(0.39 | ) | ||||||||||
Net asset value, end of period (x) | $10.62 | $11.22 | $11.00 | $10.12 | $10.63 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (2.81 | ) | 4.57 | 12.09 | (1.58 | ) | 10.08 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.76 | 1.70 | 1.78 | 1.77 | 1.78 | |||||||||||||||
Expenses after expense reductions (f) | 1.70 | 1.70 | 1.70 | 1.72 | 1.75 | |||||||||||||||
Net investment income | 2.76 | 2.64 | 3.14 | 3.39 | 3.51 | |||||||||||||||
Portfolio turnover | 15 | 14 | 19 | 22 | 16 | |||||||||||||||
Net assets at end of period (000 omitted) | $1,702 | $2,382 | $1,952 | $2,385 | $3,212 |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(x) | The net asset values per share 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. |
See Notes to Financial Statements
60
Table of Contents
Financial Highlights – continued
MFS MARYLAND MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund financial performance for the past 5 years. Certain information reflects financial results for a single fund share. The total returns in the table represent the rate by which an investor would have earned (or lost) on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
Years ended 3/31 | ||||||||||||||||||||
Class A | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Net asset value, beginning of period | $11.47 | $11.34 | $10.45 | $10.93 | $10.15 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.42 | $0.46 | $0.46 | $0.46 | $0.48 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.73 | ) | 0.09 | 0.88 | (0.49 | ) | 0.77 | |||||||||||||
Total from investment operations | $(0.31 | ) | $0.55 | $1.34 | $(0.03 | ) | $1.25 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.40 | ) | $(0.42 | ) | $(0.45 | ) | $(0.45 | ) | $(0.47 | ) | ||||||||||
From net realized gain on investments | — | — | — | (0.00 | )(w) | (0.00 | )(w) | |||||||||||||
Total distributions declared to shareholders | $(0.40 | ) | $(0.42 | ) | $(0.45 | ) | $(0.45 | ) | $(0.47 | ) | ||||||||||
Net asset value, end of period (x) | $10.76 | $11.47 | $11.34 | $10.45 | $10.93 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (2.66 | ) | 4.86 | 13.01 | (0.35 | ) | 12.49 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 0.96 | 0.92 | 0.94 | 0.94 | 0.95 | |||||||||||||||
Expenses after expense reductions (f) | 0.95 | 0.92 | 0.94 | 0.94 | 0.95 | |||||||||||||||
Net investment income | 3.85 | 4.00 | 4.16 | 4.20 | 4.47 | |||||||||||||||
Portfolio turnover | 21 | 23 | 13 | 14 | 24 | |||||||||||||||
Net assets at end of period (000 omitted) | $90,417 | $110,729 | $107,738 | $100,324 | $107,182 |
See Notes to Financial Statements
61
Table of Contents
Financial Highlights – continued
MFS MARYLAND MUNICIPAL BOND FUND – continued
Years ended 3/31 | ||||||||||||||||||||
Class B | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Net asset value, beginning of period | $11.47 | $11.33 | $10.45 | $10.93 | $10.14 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.34 | $0.37 | $0.38 | $0.38 | $0.40 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.74 | ) | 0.10 | 0.86 | (0.49 | ) | 0.78 | |||||||||||||
Total from investment operations | $(0.40 | ) | $0.47 | $1.24 | $(0.11 | ) | $1.18 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.32 | ) | $(0.33 | ) | $(0.36 | ) | $(0.37 | ) | $(0.39 | ) | ||||||||||
From net realized gain on investments | — | — | — | (0.00 | )(w) | (0.00 | )(w) | |||||||||||||
Total distributions declared to shareholders | $(0.32 | ) | $(0.33 | ) | $(0.36 | ) | $(0.37 | ) | $(0.39 | ) | ||||||||||
Net asset value, end of period (x) | $10.75 | $11.47 | $11.33 | $10.45 | $10.93 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (3.47 | ) | 4.17 | 12.07 | (1.09 | ) | 11.77 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.71 | 1.67 | 1.70 | 1.69 | 1.70 | |||||||||||||||
Expenses after expense reductions (f) | 1.70 | 1.67 | 1.69 | 1.69 | 1.70 | |||||||||||||||
Net investment income | 3.10 | 3.25 | 3.42 | 3.44 | 3.75 | |||||||||||||||
Portfolio turnover | 21 | 23 | 13 | 14 | 24 | |||||||||||||||
Net assets at end of period (000 omitted) | $2,198 | $3,507 | $3,406 | $3,772 | $6,251 |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(w) | Per share amount was less than $0.01. |
(x) | The net asset values per share 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. |
See Notes to Financial Statements
62
Table of Contents
Financial Highlights – continued
MFS MASSACHUSETTS MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund financial performance for the past 5 years. Certain information reflects financial results for a single fund share. The total returns in the table represent the rate by which an investor would have earned (or lost) on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
Years ended 3/31 | ||||||||||||||||||||
Class A | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Net asset value, beginning of period | $11.66 | $11.44 | $10.42 | $11.07 | $10.35 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.42 | $0.43 | $0.45 | $0.47 | $0.48 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.76 | ) | 0.19 | 1.01 | (0.63 | ) | 0.77 | |||||||||||||
Total from investment operations | $(0.34 | ) | $0.62 | $1.46 | $(0.16 | ) | $1.25 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.40 | ) | $(0.40 | ) | $(0.44 | ) | $(0.45 | ) | $(0.47 | ) | ||||||||||
From net realized gain on investments | — | — | — | (0.04 | ) | (0.06 | ) | |||||||||||||
Total distributions declared to shareholders | $(0.40 | ) | $(0.40 | ) | $(0.44 | ) | $(0.49 | ) | $(0.53 | ) | ||||||||||
Net asset value, end of period (x) | $10.92 | $11.66 | $11.44 | $10.42 | $11.07 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (2.85 | ) | 5.48 | 14.21 | (1.57 | ) | 12.31 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 0.87 | 0.85 | 0.85 | 0.86 | 0.87 | |||||||||||||||
Expenses after expense reductions (f) | 0.85 | 0.85 | 0.85 | 0.86 | 0.87 | |||||||||||||||
Net investment income | 3.80 | 3.64 | 4.04 | 4.25 | 4.44 | |||||||||||||||
Portfolio turnover | 23 | 15 | 26 | 25 | 21 | |||||||||||||||
Net assets at end of period (000 omitted) | $232,263 | $296,895 | $289,090 | $266,600 | $236,724 |
See Notes to Financial Statements
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Financial Highlights – continued
MFS MASSACHUSETTS MUNICIPAL BOND FUND – continued
Years ended 3/31 | ||||||||||||||||||||
Class B | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Net asset value, beginning of period | $11.68 | $11.46 | $10.44 | $11.09 | $10.37 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.33 | $0.34 | $0.36 | $0.39 | $0.40 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.75 | ) | 0.20 | 1.02 | (0.63 | ) | 0.77 | |||||||||||||
Total from investment operations | $(0.42 | ) | $0.54 | $1.38 | $(0.24 | ) | $1.17 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.32 | ) | $(0.32 | ) | $(0.36 | ) | $(0.37 | ) | $(0.39 | ) | ||||||||||
From net realized gain on investments | — | — | — | (0.04 | ) | (0.06 | ) | |||||||||||||
Total distributions declared to shareholders | $(0.32 | ) | $(0.32 | ) | $(0.36 | ) | $(0.41 | ) | $(0.45 | ) | ||||||||||
Net asset value, end of period (x) | $10.94 | $11.68 | $11.46 | $10.44 | $11.09 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (3.59 | ) | 4.69 | 13.33 | (2.30 | ) | 11.45 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.62 | 1.60 | 1.60 | 1.60 | 1.62 | |||||||||||||||
Expenses after expense reductions (f) | 1.62 | 1.60 | 1.60 | 1.60 | 1.62 | |||||||||||||||
Net investment income | 3.02 | 2.88 | 3.29 | 3.50 | 3.70 | |||||||||||||||
Portfolio turnover | 23 | 15 | 26 | 25 | 21 | |||||||||||||||
Net assets at end of period (000 omitted) | $3,810 | $5,095 | $5,443 | $7,333 | $13,804 |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(x) | The net asset values per share 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. |
See Notes to Financial Statements
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(1) | Business and Organization |
MFS Alabama Municipal Bond Fund (Alabama Fund), MFS Arkansas Municipal Bond Fund (Arkansas Fund), MFS California Municipal Bond Fund (California Fund), MFS Georgia Municipal Bond Fund (Georgia Fund), MFS Maryland Municipal Bond Fund (Maryland Fund), and MFS Massachusetts Municipal Bond Fund (Massachusetts Fund) are each a diversified series of MFS Municipal Series Trust which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company.
The funds are each investment companies and accordingly follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services – Investment Companies.
(2) | Significant Accounting Policies |
General – The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated subsequent events occurring after the date of each fund’s Statement of Assets and Liabilities through the date that the financial statements were issued. Each fund invests primarily in municipal instruments. The value of municipal instruments can be affected by changes in their actual or perceived credit quality. The credit quality of municipal instruments can be affected by, among other things, the financial condition of the issuer or guarantor, the issuer’s future borrowing plans and sources of revenue, the economic feasibility of the revenue bond project or general borrowing purpose, political or economic developments in the region or state where the instrument is issued and the liquidity of the security. Municipal instruments generally trade in the over-the-counter market. Municipal instruments backed by current and anticipated revenues from a specific project or specific assets can be negatively affected by the discontinuance of the taxation supporting the projects or assets or the inability to collect revenues for the project or from the assets. If the Internal Revenue Service determines an issuer of a municipal instrument has not complied with the applicable tax requirements, interest from the security could become taxable, the security could decline in value, and distributions made by the funds could be taxable to shareholders.
In this reporting period, each fund adopted the disclosure provisions of FASB Accounting Standards Update 2011-11 (“ASU 2011-11”), Balance Sheet (Topic 210) – Disclosures about Offsetting Assets and Liabilities along with the related scope clarification provisions of FASB Accounting Standards Update 2013-01 (“ASU 2013-01”) entitled Balance Sheet (Topic 210) – Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. ASU 2011-11 is intended to enhance disclosures on the offsetting of financial assets and liabilities by requiring entities to disclose both gross and net information about financial instruments and transactions that are either offset in the statement of financial position or subject to an enforceable Master Netting Agreement or similar arrangement. ASU 2013-01 limits the scope of ASU 2011-11’s disclosure requirements on offsetting to financial assets and financial liabilities related to derivatives, repurchase and reverse repurchase agreements, and securities lending and securities borrowing transactions. The disclosures required by ASU 2011-11, to the extent applicable to each fund, have been included in each fund’s Significant Accounting Policies note under the captions for each of the fund’s in-scope financial instruments and transactions.
Investment Valuations – Debt instruments and floating rate loans (other than short-term instruments), including restricted debt instruments, are generally valued at an evaluated or composite bid as provided by a third-party pricing service. Short-term instruments with a maturity at issuance of 60 days or less generally are valued at amortized cost, which approximates market value. Open-end investment companies are generally valued at net asset value per share. Securities and other assets generally valued on the basis of information from a third-party pricing service may also be valued at a broker/dealer bid quotation. Values obtained from third-party pricing services can utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics, and other market data.
The Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of each fund’s investments (including any fair valuation) to the adviser pursuant to valuation policies and procedures approved by the Board. If the adviser determines that reliable market quotations are not readily available, investments are valued at fair value as determined in good faith by the adviser in accordance with such procedures under the oversight of the Board of Trustees. Under each fund’s valuation policies and procedures, market quotations are not considered to be readily available for most types of debt instruments and floating rate loans and many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services. In addition, investments may be valued at fair value if the adviser determines that an investment’s value has been materially affected by events occurring after the close of the exchange or market on which the investment is principally traded (such as foreign exchange or market) and prior to the determination of each fund’s net asset value, or after the halting of trading of a specific security where trading does not resume prior to the close of the exchange or market on which the security is principally traded. The adviser generally relies on third-party pricing services or other information (such as the correlation with price movements of similar securities in the same or other markets; the type, cost and investment characteristics of the security; the business and financial condition of the issuer; and trading and other market data) to assist in determining whether to fair value and
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Notes to Financial Statements – continued
at what value to fair value an investment. The value of an investment for purposes of calculating each fund’s net asset value can differ depending on the source and method used to determine value. When fair valuation is used, the value of an investment used to determine each fund’s net asset value may differ from quoted or published prices for the same investment. There can be no assurance that each fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which each fund determines its net asset value per share.
Various inputs are used in determining the value of each fund’s assets or liabilities. These inputs are categorized into three broad levels. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Each fund’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes unobservable inputs, which may include the adviser’s own assumptions in determining the fair value of investments. The following is a summary of the levels used as of March 31, 2014 in valuing each fund’s assets or liabilities:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Alabama Fund | ||||||||||||||||
Investments at Value | ||||||||||||||||
Municipal Bonds | $— | $51,426,808 | $— | $51,426,808 | ||||||||||||
Mutual Funds | 977,768 | — | — | 977,768 | ||||||||||||
Total Investments | $977,768 | $51,426,808 | $— | $52,404,576 | ||||||||||||
Arkansas Fund | ||||||||||||||||
Investments at Value | ||||||||||||||||
Municipal Bonds | $— | $177,568,869 | $— | $177,568,869 | ||||||||||||
Mutual Funds | 376,083 | — | — | 376,083 | ||||||||||||
Total Investments | $376,083 | $177,568,869 | $— | $177,944,952 | ||||||||||||
California Fund | ||||||||||||||||
Investments at Value | ||||||||||||||||
Municipal Bonds | $— | $260,735,318 | $— | $260,735,318 | ||||||||||||
Mutual Funds | 1,557,972 | — | — | 1,557,972 | ||||||||||||
Total Investments | $1,557,972 | $260,735,318 | $— | $262,293,290 | ||||||||||||
Georgia Fund | ||||||||||||||||
Investments at Value | ||||||||||||||||
Municipal Bonds | $— | $59,384,970 | $— | $59,384,970 | ||||||||||||
Mutual Funds | 983,637 | — | — | 983,637 | ||||||||||||
Total Investments | $983,637 | $59,384,970 | $— | $60,368,607 | ||||||||||||
Maryland Fund | ||||||||||||||||
Investments at Value | ||||||||||||||||
Municipal Bonds | $— | $89,632,620 | $— | $89,632,620 | ||||||||||||
Mutual Funds | 1,522,303 | — | — | 1,522,303 | ||||||||||||
Total Investments | $1,522,303 | $89,632,620 | $— | $91,154,923 | ||||||||||||
Massachusetts Fund | ||||||||||||||||
Investments at Value | ||||||||||||||||
Municipal Bonds | $— | $232,468,898 | $— | $232,468,898 | ||||||||||||
Mutual Funds | 2,528,691 | — | — | 2,528,691 | ||||||||||||
Total Investments | $2,528,691 | $232,468,898 | $— | $234,997,589 |
For further information regarding security characteristics, see the Portfolio of Investments.
Indemnifications – Under each fund’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to each fund. Additionally, in the normal course of business, each fund enters into agreements with service providers that may contain indemnification clauses. Each fund’s maximum exposure under these agreements is unknown as this would involve future claims that may be made against each fund that have not yet occurred.
Investment Transactions and Income – Investment transactions are recorded on the trade date. Interest income is recorded on the accrual basis. All premium and discount is amortized or accreted for financial statement purposes in accordance with U.S. generally
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accepted accounting principles. Interest payments received in additional securities are recorded on the ex-interest date in an amount equal to the value of the security on such date. Debt obligations may be placed on non-accrual status or set to accrue at a rate of interest less than the contractual coupon when the collection of all or a portion of interest has become doubtful. Interest income for those debt obligations may be further reduced by the write-off of the related interest receivables when deemed uncollectible.
Each fund may receive proceeds from litigation settlements. Any proceeds received from litigation involving portfolio holdings are reflected in the Statements of Operations in realized gain/loss if the security has been disposed of by the fund or in unrealized gain/loss if the security is still held by the fund. Any other proceeds from litigation not related to portfolio holdings are reflected as other income in the Statements of Operations.
Fees Paid Indirectly – Each fund’s custody fee may be reduced according to an arrangement that measures the value of cash deposited with the custodian by each fund. For each fund, this amount, for the year ended March 31, 2014, is shown as a reduction of total expenses in the Statements of Operations, with the exception of the Arkansas Fund for which there was no reduction.
Tax Matters and Distributions – Each fund intends to qualify as a regulated investment company, as defined under Subchapter M of the Internal Revenue Code, and to distribute all of its taxable and tax-exempt income, including realized capital gains. As a result, no provision for federal income tax is required. Each fund’s federal tax returns, when filed, will remain subject to examination by the Internal Revenue Service for a three year period. Management has analyzed each fund’s tax positions taken on federal and state tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
Distributions to shareholders are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. Certain capital accounts in the financial statements are periodically adjusted for permanent differences in order to reflect their tax character. These adjustments have no impact on net assets or net asset value per share. Temporary differences which arise from recognizing certain items of income, expense, gain or loss in different periods for financial statement and tax purposes will reverse at some time in the future. Distributions in excess of net investment income or net realized gains are temporary overdistributions for financial statement purposes resulting from differences in the recognition or classification of income or distributions for financial statement and tax purposes.
Book/tax differences primarily relate to amortization and accretion of debt securities, as applicable to each fund.
The tax character of distributions declared to shareholders for the last two fiscal years is as follows:
Year Ended 3/31/14 | Alabama Fund | Arkansas Fund | California Fund | Georgia Fund | Maryland Fund | Massachusetts Fund | ||||||||||||||||||
Ordinary income (including any short-term capital gains) | $— | $29,107 | $— | $— | $— | $— | ||||||||||||||||||
Tax-exempt income | 2,269,574 | 6,897,548 | 11,173,911 | 2,410,842 | 3,744,433 | 9,474,128 | ||||||||||||||||||
Total distributions | $2,269,574 | $6,926,655 | $11,173,911 | $2,410,842 | $3,744,433 | $9,474,128 | ||||||||||||||||||
Year Ended 3/31/13 | Alabama Fund | Arkansas Fund | California Fund | Georgia Fund | Maryland Fund | Massachusetts Fund | ||||||||||||||||||
Ordinary income (including any short-term capital gains) | $— | $58,712 | $164,760 | $8,530 | $— | $348,639 | ||||||||||||||||||
Tax-exempt income | 2,587,536 | 8,021,060 | 11,827,382 | 2,531,432 | 4,088,801 | 10,062,205 | ||||||||||||||||||
Total distributions | $2,587,536 | $8,079,772 | $11,992,142 | $2,539,962 | $4,088,801 | $10,410,844 |
The federal tax cost and the tax basis components of distributable earnings were as follows:
As of 3/31/14 | Alabama Fund | Arkansas Fund | California Fund | Georgia Fund | Maryland Fund | Massachusetts Fund | ||||||||||||||||||
Cost of investments | $49,621,770 | $174,632,277 | $248,062,643 | $57,754,365 | $87,508,839 | $218,945,093 | ||||||||||||||||||
Gross appreciation | 3,031,800 | 6,121,946 | 16,358,533 | 3,020,150 | 4,774,510 | 17,145,748 | ||||||||||||||||||
Gross depreciation | (248,994 | ) | (2,809,271 | ) | (2,127,886 | ) | (405,908 | ) | (1,128,426 | ) | (1,093,252 | ) | ||||||||||||
Net unrealized appreciation (depreciation) | $2,782,806 | $3,312,675 | $14,230,647 | $2,614,242 | $3,646,084 | $16,052,496 | ||||||||||||||||||
Undistributed ordinary income | — | 27,225 | 2,462 | 265 | — | 3,840 | ||||||||||||||||||
Undistributed tax-exempt income | 197,618 | 525,009 | 938,764 | 181,863 | 485,168 | 820,126 | ||||||||||||||||||
Capital loss carryforwards | (1,935,368 | ) | (5,609,897 | ) | (12,497,582 | ) | (1,936,878 | ) | (2,876,458 | ) | (8,816,090 | ) | ||||||||||||
Post-October capital loss deferral | — | (424,346 | ) | (318,296 | ) | (111,624 | ) | (703,274 | ) | (305,677 | ) | |||||||||||||
Other temporary differences | (170,913 | ) | (502,541 | ) | (876,402 | ) | (190,951 | ) | (305,276 | ) | (777,338 | ) |
Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized for fund fiscal years beginning after March 31, 2011, may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses (“post-enactment losses”). Previously, net capital losses were carried forward for eight years and treated as short-term losses (“pre-enactment losses”). As a transition rule, the Act requires that all post-enactment net capital losses be used before pre-enactment net capital losses.
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As of March 31, 2014, each fund had capital loss carryforwards available to offset future realized gains as follows:
Pre-enactment losses which expire as follows: | Alabama Fund | Arkansas Fund | California Fund | Georgia Fund | Maryland Fund | Massachusetts Fund | ||||||||||||||||||
3/31/16 | $— | $— | $(40,368 | ) | $— | $— | $— | |||||||||||||||||
3/31/17 | — | — | (1,063,041 | ) | — | — | — | |||||||||||||||||
3/31/18 | — | — | — | (153,718 | ) | — | — | |||||||||||||||||
3/31/19 | (674,377 | ) | (197,659 | ) | (2,804,636 | ) | (266,409 | ) | (579,646 | ) | (488,562 | ) | ||||||||||||
Total | $(674,377 | ) | $(197,659 | ) | $(3,908,045 | ) | $(420,127 | ) | $(579,646 | ) | $(488,562 | ) | ||||||||||||
Post-enactment losses which are characterized as follows: | ||||||||||||||||||||||||
Short-Term | $(428,620 | ) | $(2,429,711 | ) | $(4,111,318 | ) | $(956,960 | ) | $(1,489,777 | ) | $(4,748,570 | ) | ||||||||||||
Long-Term | (832,371 | ) | (2,982,527 | ) | (4,478,219 | ) | (559,791 | ) | (807,035 | ) | (3,578,958 | ) | ||||||||||||
Total | $(1,260,991 | ) | $(5,412,238 | ) | $(8,589,537 | ) | $(1,516,751 | ) | $(2,296,812 | ) | $(8,327,528 | ) |
Multiple Classes of Shares of Beneficial Interest – Each fund offers multiple classes of shares, which differ in their respective distribution and service fees. Each fund’s income and common expenses are allocated to shareholders based on the value of settled shares outstanding of each class. Each fund’s realized and unrealized gain (loss) are allocated to shareholders based on the daily net assets of each class. Dividends are declared separately for each class. Differences in per share dividend rates are generally due to differences in separate class expenses. Class B shares will convert to Class A shares approximately eight years after purchase. Each fund’s distributions declared to shareholders as reported in the Statements of Changes in Net Assets are presented by class as follows:
Distributions declared to shareholders:
From net investment income
Alabama Fund | Arkansas Fund | California Fund | ||||||||||
Year ended 3/31/14 | Year ended 3/31/13 | Year ended 3/31/14 | Year ended 3/31/13 | Year ended 3/31/14 | Year ended 3/31/13 | |||||||
Class A | $2,243,951 | $2,548,506 | $6,716,641 | $7,830,576 | $10,058,978 | $10,818,016 | ||||||
Class B | 25,623 | 39,030 | 210,014 | 249,196 | 149,985 | 164,264 | ||||||
Class C | — | — | — | — | 964,948 | 1,009,862 | ||||||
Total | $2,269,574 | $2,587,536 | $6,926,655 | $8,079,772 | $11,173,911 | $11,992,142 | ||||||
Georgia Fund | Maryland Fund | Massachusetts Fund | ||||||||||
Year ended 3/31/14 | Year ended 3/31/13 | Year ended 3/31/14 | Year ended 3/31/13 | Year ended 3/31/14 | Year ended 3/31/13 | |||||||
Class A | $2,358,659 | $2,484,819 | $3,662,344 | $3,989,469 | $9,348,296 | $10,264,971 | ||||||
Class B | 52,183 | 55,143 | 82,089 | 99,332 | 125,832 | 145,873 | ||||||
Total | $2,410,842 | $2,539,962 | $3,744,433 | $4,088,801 | $9,474,128 | $10,410,844 |
(3) | Transactions with Affiliates |
Investment Adviser – Each fund has an investment advisory agreement with MFS to provide overall investment management and related administrative services and facilities to each fund. The management fee is computed daily and paid monthly at an annual rate of 0.45% of each fund’s average daily net assets.
MFS has agreed in writing to reduce its management fee by a specified amount if certain MFS mutual fund assets exceed thresholds agreed to by MFS and the funds’ Board of Trustees. For the year ended March 31, 2014, these management fee reductions amounted to the following, which are included in the reduction of total expenses in the Statements of Operations:
Alabama Fund | Arkansas Fund | California Fund | Georgia Fund | Maryland Fund | Massachusetts Fund | |||||||
$875 | $3,031 | $4,244 | $1,054 | $1,523 | $3,856 |
The management fee incurred for the year ended March 31, 2014 was equivalent to an annual effective rate of 0.45% of each fund’s average daily net assets.
The investment adviser has agreed in writing to pay a portion of the following funds’ total annual operating expenses, exclusive of interest, taxes, extraordinary expenses, brokerage and transaction costs, and investment-related expenses, such that total annual fund operating expenses do not exceed the following rates annually of these funds’ average daily net assets:
Alabama Fund | Georgia Fund | Maryland Fund | ||||||||||
Class A | 0.93% | 0.95% | 0.95% | |||||||||
Class B | 1.68% | 1.70% | 1.70% |
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For the Alabama Fund and the Maryland Fund, these written agreements will continue until modified by the funds’ Board of Trustees, but such agreements will continue at least until July 31, 2014. For the Georgia Fund, this written agreement will continue until at least July 31, 2014, after which MFS, under certain conditions, may increase such expense limitation to 1.00% of the fund’s average daily net assets annually for Class A shares and 1.75% of the fund’s average daily net assets annually for Class B shares without a vote of the fund’s Board of Trustees. Any increase above 1.00% and 1.75% of the fund’s average daily net assets annually for Class A and Class B shares, respectively, would require a vote of the fund’s Board of Trustees. For the year ended March 31, 2014, these reductions amounted to $70,686 for the Alabama Fund, $43,649 for the Georgia Fund, and $7,275 for the Maryland Fund and are included in the reduction of total expenses in the Statements of Operations.
Distributor – MFS Fund Distributors, Inc. (MFD), a wholly-owned subsidiary of MFS, as distributor, received the following for the year ended March 31, 2014, as its portion of the initial sales charge on sales of Class A shares of each fund:
Alabama Fund | Arkansas Fund | California Fund | Georgia Fund | Maryland Fund | Massachusetts Fund | |||||||||||||||
$10,990 | $54,931 | $40,899 | $30,316 | $17,007 | $27,560 |
The Board of Trustees has adopted a distribution plan for certain share classes pursuant to Rule 12b-1 of the Investment Company Act of 1940.
Each fund’s distribution plan provides that each fund will pay MFD for services provided by MFD and financial intermediaries in connection with the distribution and servicing of certain share classes. One component of the plan is a distribution fee paid to MFD and another component of the plan is a service fee paid to MFD. MFD may subsequently pay all, or a portion, of the distribution and/or service fees to financial intermediaries.
Distribution Plan Fee Table:
CLASS A | ||||||||||||||||||||
Distribution Fee Rate (d) | Service Fee Rate (d) | Total Distribution Plan (d) | Annual Effective Rate (e) | Distribution and Service Fee | ||||||||||||||||
Alabama Fund | — | 0.25% | 0.25% | 0.25% | $146,684 | |||||||||||||||
Arkansas Fund | — | 0.25% | 0.25% | 0.10% | 494,847 | |||||||||||||||
California Fund | — | 0.25% | 0.25% | 0.10% | 621,338 | |||||||||||||||
Georgia Fund | — | 0.25% | 0.25% | 0.25% | 173,558 | |||||||||||||||
Maryland Fund | — | 0.25% | 0.25% | 0.25% | 248,315 | |||||||||||||||
Massachusetts Fund | — | 0.25% | 0.25% | 0.23% | 638,555 | |||||||||||||||
CLASS B | ||||||||||||||||||||
Distribution Fee Rate (d) | Service Fee Rate (d) | Total Distribution Plan (d) | Annual Effective Rate (e) | Distribution and Service Fee | ||||||||||||||||
Alabama Fund | 0.75% | 0.25% | 1.00% | 1.00% | $8,356 | |||||||||||||||
Arkansas Fund | 0.75% | 0.25% | 1.00% | 0.87% | 80,067 | |||||||||||||||
California Fund | 0.75% | 0.25% | 1.00% | 0.87% | 45,804 | |||||||||||||||
Georgia Fund | 0.75% | 0.25% | 1.00% | 1.00% | 19,880 | |||||||||||||||
Maryland Fund | 0.75% | 0.25% | 1.00% | 1.00% | 28,036 | |||||||||||||||
Massachusetts Fund | 0.75% | 0.25% | 1.00% | 1.00% | 43,701 | |||||||||||||||
CLASS C | ||||||||||||||||||||
Distribution Fee Rate (d) | Service Fee Rate (d) | Total Distribution Plan (d) | Annual Effective Rate (e) | Distribution and Service Fee | ||||||||||||||||
California Fund | 0.75% | 0.25% | 1.00% | 1.00% | $308,141 |
Alabama Fund | Arkansas Fund | California Fund | Georgia Fund | Maryland Fund | Massachusetts Fund | |||||||||||||||||||
Total Distribution and Service Fees | $155,040 | $574,914 | $975,283 | $193,438 | $276,351 | $682,256 |
(d) | In accordance with the distribution plan for certain classes, each fund pays distribution and/or service fees equal to these annual percentage rates of each class’s average daily net assets. The distribution and service fee rates disclosed by class represent the current rates in effect at the end of the reporting period. Any rate changes, if applicable, are detailed below. |
(e) | The annual effective rates represent actual fees incurred under the distribution plan for the year ended March 31, 2014 based on each class’s average daily net assets. MFD has voluntarily agreed to rebate a portion of each class’s 0.25% service fee attributable to accounts for which MFD retains the 0.25% service fee except for accounts attributable to MFS or its affiliates’ seed money. For the year ended March 31, 2014, these rebates amounted to the following and are included in the reduction of total expenses in the Statements of Operations: |
Alabama Fund | Arkansas Fund | California Fund | Georgia Fund | Maryland Fund | Massachusetts Fund | |||||||||||||||||||
Class A | $536 | $291 | $3,745 | $1,523 | $4,263 | $51,315 | ||||||||||||||||||
Class B | — | — | — | — | 29 | 11 | ||||||||||||||||||
Class C | N/A | N/A | 7 | N/A | N/A | N/A |
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Arkansas Fund: MFD has agreed in writing to reduce the Class A service fee rate to 0.10%. This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until July 31, 2014. This reduction amounted to $296,910 which is included in the reduction of total expenses in the Statements of Operations. The service fee rate attributable to Class B shares within the first year of purchase is 0.25%. The service fee rate attributable to all other Class B shares has been reduced by MFD to 0.10% under a written agreement that will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until July 31, 2014. This reduction amounted to $10,738 which is included in the reduction of total expenses in the Statements of Operations. |
California Fund: MFD has agreed in writing to reduce the Class A service fee rate to 0.10%. This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until July 31, 2014. This reduction amounted to $372,804 which is included in the reduction of total expenses in the Statements of Operations. The service fee rate attributable to Class B shares within the first year of purchase is 0.25%. The service fee rate attributable to all other Class B shares has been reduced by MFD to 0.10% under a written agreement that will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until July 31, 2014. This reduction amounted to $5,993 which is included in the reduction of total expenses in the Statements of Operations. |
Certain Class A shares are subject to a contingent deferred sales charge (CDSC) in the event of a shareholder redemption within 18 months of purchase for shares purchased on or after August 1, 2012, and within 24 months of purchase for shares purchased prior to August 1, 2012. Class C shares are subject to a CDSC in the event of a shareholder redemption within 12 months of purchase. Class B shares are subject to a CDSC in the event of a shareholder redemption within six years of purchase. All contingent deferred sales charges are paid to MFD and during the year ended March 31, 2014, were as follows:
CDSC imposed | Alabama Fund | Arkansas Fund | California Fund | Georgia Fund | Maryland Fund | Massachusetts Fund | ||||||||||||||||||
Class A | $— | $5,802 | $7,339 | $18,088 | $— | $2,736 | ||||||||||||||||||
Class B | 7,181 | 16,625 | 14,610 | 5,228 | 9,798 | 5,879 | ||||||||||||||||||
Class C | N/A | N/A | 2,871 | N/A | N/A | N/A |
Shareholder Servicing Agent – MFS Service Center, Inc. (MFSC), a wholly-owned subsidiary of MFS, receives a fee from each fund for its services as shareholder servicing agent calculated as a percentage of the average daily net assets of each fund as determined periodically under the supervision of the funds’ Board of Trustees. For the year ended March 31, 2014, each fund paid the following fee, which equated to the following annual percentage of each fund’s average daily net assets:
Alabama Fund | Arkansas Fund | California Fund | Georgia Fund | Maryland Fund | Massachusetts Fund | |||||||||||||||||||
Expenses paid | $6,116 | $18,904 | $32,645 | $6,733 | $16,286 | $30,784 | ||||||||||||||||||
Percentage of average daily net assets | 0.0103% | 0.0092% | 0.0115% | 0.0094% | 0.0159% | 0.0119% |
MFSC also receives payment from each fund for out-of-pocket expenses, sub-accounting and other shareholder servicing costs which may be paid to affiliated and unaffiliated service providers. For the year ended March 31, 2014, these out-of-pocket expenses, sub-accounting and other shareholder servicing costs amounted to the following:
Alabama Fund | Arkansas Fund | California Fund | Georgia Fund | Maryland Fund | Massachusetts Fund | |||||||||||||||
$40,007 | $160,048 | $205,384 | $47,763 | $63,696 | $182,787 |
Administrator – MFS provides certain financial, legal, shareholder communications, compliance, and other administrative services to each fund. Under an administrative services agreement, each fund partially reimburses MFS the costs incurred to provide these services. Each fund is charged an annual fixed amount of $17,500 plus a fee based on average daily net assets. The administrative services fee incurred for the year ended March 31, 2014 was equivalent to an annual effective rate of each fund’s average daily net assets as follows:
Alabama Fund | Arkansas Fund | California Fund | Georgia Fund | Maryland Fund | Massachusetts Fund | |||||||||||||||||||
Percentage of average daily net assets | 0.0314% | 0.0176% | 0.0160% | 0.0281% | 0.0233% | 0.0164% |
Trustees’ and Officers’ Compensation – Each fund pays compensation to independent Trustees in the form of a retainer, attendance fees, and additional compensation to Board and Committee chairpersons. Each fund does not pay compensation directly to Trustees or officers of each fund who are also officers of the investment adviser, all of whom receive remuneration for their services to each fund from MFS. Certain officers and Trustees of each fund are officers or directors of MFS, MFD, and MFSC.
Prior to December 31, 2001, each fund had an unfunded defined benefit plan (“DB plan”) for independent Trustees. As of December 31, 2001, the Board took action to terminate the DB plan with respect to then-current and any future independent Trustees, such that the DB plan covers only certain of those former independent Trustees who retired on or before December 31, 2001. The DB plan resulted in a pension expense for each fund. These amounts are included in “Independent Trustees’ compensation” in the Statements of Operations and were as follows:
Alabama Fund | Arkansas Fund | California Fund | Georgia Fund | Maryland Fund | Massachusetts Fund | |||||||||||||||
$87 | $89 | $638 | $98 | $530 | $545 |
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The liability for deferred retirement benefits payable to certain independent Trustees under the DB plan amounted to the following at March 31, 2014, and is included in “Payable for independent Trustees’ compensation” in the Statements of Assets and Liabilities:
Alabama Fund | Arkansas Fund | California Fund | Georgia Fund | Maryland Fund | Massachusetts Fund | |||||||||||||||
$3,923 | $3,762 | $10,333 | $4,424 | $6,903 | $6,866 |
Other – These funds and certain other funds managed by MFS (the funds) have entered into services agreements (the Agreements) which provide for payment of fees by the funds to Tarantino LLC and Griffin Compliance LLC in return for the provision of services of an Independent Chief Compliance Officer (ICCO) and Assistant ICCO, respectively, for the funds. The ICCO and Assistant ICCO are officers of the funds and the sole members of Tarantino LLC and Griffin Compliance LLC, respectively. The funds can terminate the Agreements with Tarantino LLC and Griffin Compliance LLC at any time under the terms of the Agreements. For the year ended March 31, 2014, the aggregate fees paid by each fund to Tarantino LLC and Griffin Compliance LLC amounted to the following and are included in “Miscellaneous” expense in the Statements of Operations:
Alabama Fund | Arkansas Fund | California Fund | Georgia Fund | Maryland Fund | Massachusetts Fund | |||||||||||||||
$344 | $1,221 | $1,649 | $426 | $593 | $1,518 |
MFS has agreed to reimburse the funds for a portion of the payments made by each fund in the following amounts, which are included in the reduction of total expenses in the Statements of Operations. Additionally, MFS has agreed to bear all expenses associated with office space, other administrative support, and supplies provided to the ICCO and Assistant ICCO:
Alabama Fund | Arkansas Fund | California Fund | Georgia Fund | Maryland Fund | Massachusetts Fund | |||||||||||||||
$135 | $466 | $637 | $160 | $227 | $584 |
Each fund invests in the MFS Institutional Money Market Portfolio which is managed by MFS and seeks current income consistent with preservation of capital and liquidity. Income earned on this investment is included in “Dividends from underlying affiliated funds” in the Statements of Operations. This money market fund does not pay a management fee to MFS.
(4) | Portfolio Securities |
Purchases and sales of investments, other than short-term obligations, were as follows:
Alabama Fund | Arkansas Fund | California Fund | Georgia Fund | Maryland Fund | Massachusetts Fund | |||||||||||||||||||
Purchases | $8,860,429 | $38,167,498 | $73,404,171 | $10,116,628 | $20,356,041 | $57,272,297 | ||||||||||||||||||
Sales | $22,732,512 | $80,892,892 | $115,256,208 | $25,232,648 | $31,521,579 | $95,776,121 |
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(5) | Shares of Beneficial Interest |
Each fund’s Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest. Transactions in fund shares were as follows:
Alabama Fund | Arkansas Fund | |||||||||||||||||||||||||||||||
Year ended 3/31/14 | Year ended 3/31/13 | Year ended 3/31/14 | Year ended 3/31/13 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | ||||||||||||||||||||||||||||||||
Class A | 406,832 | $4,137,456 | 608,036 | $6,526,733 | 1,756,225 | $17,150,233 | 4,465,572 | $46,121,592 | ||||||||||||||||||||||||
Class B | 10,711 | 106,916 | 12,616 | 135,535 | 26,877 | 265,198 | 207,990 | 2,146,156 | ||||||||||||||||||||||||
417,543 | $4,244,372 | 620,652 | $6,662,268 | 1,783,102 | $17,415,431 | 4,673,562 | $48,267,748 | |||||||||||||||||||||||||
Shares issued to shareholders in reinvestment of distributions | ||||||||||||||||||||||||||||||||
Class A | 177,515 | $1,799,710 | 174,498 | $1,876,667 | 578,476 | $5,602,644 | 559,333 | $5,777,695 | ||||||||||||||||||||||||
Class B | 2,082 | 21,121 | 2,807 | 30,167 | 19,410 | 188,190 | 19,322 | 199,785 | ||||||||||||||||||||||||
179,597 | $1,820,831 | 177,305 | $1,906,834 | 597,886 | $5,790,834 | 578,655 | $5,977,480 | |||||||||||||||||||||||||
Shares reacquired | ||||||||||||||||||||||||||||||||
Class A | (1,899,072 | ) | $(19,194,109 | ) | (854,873 | ) | $(9,197,619 | ) | (7,184,155 | ) | $(69,277,020 | ) | (3,321,798 | ) | $(34,306,542 | ) | ||||||||||||||||
Class B | (52,987 | ) | (537,174 | ) | (83,405 | ) | (894,256 | ) | (219,106 | ) | (2,134,962 | ) | (165,705 | ) | (1,713,992 | ) | ||||||||||||||||
(1,952,059 | ) | $(19,731,283 | ) | (938,278 | ) | $(10,091,875 | ) | (7,403,261 | ) | $(71,411,982 | ) | (3,487,503 | ) | $(36,020,534 | ) | |||||||||||||||||
Net change | ||||||||||||||||||||||||||||||||
Class A | (1,314,725 | ) | $(13,256,943 | ) | (72,339 | ) | $(794,219 | ) | (4,849,454 | ) | $(46,524,143 | ) | 1,703,107 | $17,592,745 | ||||||||||||||||||
Class B | (40,194 | ) | (409,137 | ) | (67,982 | ) | (728,554 | ) | (172,819 | ) | (1,681,574 | ) | 61,607 | 631,949 | ||||||||||||||||||
(1,354,919 | ) | $(13,666,080 | ) | (140,321 | ) | $(1,522,773 | ) | (5,022,273 | ) | $(48,205,717 | ) | 1,764,714 | $18,224,694 | |||||||||||||||||||
California Fund | Georgia Fund | |||||||||||||||||||||||||||||||
Year ended 3/31/14 | Year ended 3/31/13 | Year ended 3/31/14 | Year ended 3/31/13 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | ||||||||||||||||||||||||||||||||
Class A | 2,708,037 | $15,577,719 | 5,296,099 | $31,954,748 | 883,129 | $9,348,709 | 1,898,647 | $21,337,661 | ||||||||||||||||||||||||
Class B | 66,010 | 387,436 | 120,645 | 727,186 | 8,554 | 95,515 | 67,566 | 760,151 | ||||||||||||||||||||||||
Class C | 368,842 | 2,137,362 | 843,848 | 5,091,689 | — | — | — | — | ||||||||||||||||||||||||
3,142,889 | $18,102,517 | 6,260,592 | $37,773,623 | 891,683 | $9,444,224 | 1,966,213 | $22,097,812 | |||||||||||||||||||||||||
Shares issued to shareholders in reinvestment of distributions | ||||||||||||||||||||||||||||||||
Class A | 1,342,032 | $7,662,047 | 1,303,835 | $7,864,323 | 185,187 | $1,957,601 | 163,236 | $1,837,027 | ||||||||||||||||||||||||
Class B | 20,156 | 115,004 | 18,596 | 112,162 | 4,540 | 48,205 | 4,345 | 49,087 | ||||||||||||||||||||||||
Class C | 126,401 | 723,848 | 118,607 | 717,821 | — | — | — | — | ||||||||||||||||||||||||
1,488,589 | $8,500,899 | 1,441,038 | $8,694,306 | 189,727 | $2,005,806 | 167,581 | $1,886,114 | |||||||||||||||||||||||||
Shares reacquired | ||||||||||||||||||||||||||||||||
Class A | (11,246,845 | ) | $(64,145,495 | ) | (6,388,909 | ) | $(38,446,008 | ) | (2,670,552 | ) | $(28,095,086 | ) | (1,183,157 | ) | $(13,331,926 | ) | ||||||||||||||||
Class B | (249,575 | ) | (1,409,548 | ) | (248,899 | ) | (1,496,420 | ) | (65,058 | ) | (686,871 | ) | (37,143 | ) | (418,295 | ) | ||||||||||||||||
Class C | (1,306,048 | ) | (7,442,784 | ) | (912,621 | ) | (5,510,482 | ) | — | — | — | — | ||||||||||||||||||||
(12,802,468 | ) | $(72,997,827 | ) | (7,550,429 | ) | $(45,452,910 | ) | (2,735,610 | ) | $(28,781,957 | ) | (1,220,300 | ) | $(13,750,221 | ) | |||||||||||||||||
Net change | ||||||||||||||||||||||||||||||||
Class A | (7,196,776 | ) | $(40,905,729 | ) | 211,025 | $1,373,063 | (1,602,236 | ) | $(16,788,776 | ) | 878,726 | $9,842,762 | ||||||||||||||||||||
Class B | (163,409 | ) | (907,108 | ) | (109,658 | ) | (657,072 | ) | (51,964 | ) | (543,151 | ) | 34,768 | 390,943 | ||||||||||||||||||
Class C | (810,805 | ) | (4,581,574 | ) | 49,834 | 299,028 | — | — | — | — | ||||||||||||||||||||||
(8,170,990 | ) | $(46,394,411 | ) | 151,201 | $1,015,019 | (1,654,200 | ) | $(17,331,927 | ) | 913,494 | $10,233,705 |
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Maryland Fund | Massachusetts Fund | |||||||||||||||||||||||||||||||
Year ended 3/31/14 | Year ended 3/31/13 | Year ended 3/31/14 | Year ended 3/31/13 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | ||||||||||||||||||||||||||||||||
Class A | 1,570,535 | $17,068,788 | 948,826 | $10,965,224 | 1,328,413 | $14,689,083 | 2,834,096 | $33,310,122 | ||||||||||||||||||||||||
Class B | 11,350 | 124,986 | 80,482 | 927,072 | 33,915 | 377,816 | 85,512 | 1,003,191 | ||||||||||||||||||||||||
1,581,885 | $17,193,774 | 1,029,308 | $11,892,296 | 1,362,328 | $15,066,899 | 2,919,608 | $34,313,313 | |||||||||||||||||||||||||
Shares issued to shareholders in reinvestment of distributions | ||||||||||||||||||||||||||||||||
Class A | 260,081 | $2,814,440 | 246,809 | $2,853,563 | 679,590 | $7,440,290 | 602,549 | $7,080,805 | ||||||||||||||||||||||||
Class B | 6,837 | 74,083 | 7,399 | 85,494 | 9,248 | 101,486 | 8,614 | 101,305 | ||||||||||||||||||||||||
266,918 | $2,888,523 | 254,208 | $2,939,057 | 688,838 | $7,541,776 | 611,163 | $7,182,110 | |||||||||||||||||||||||||
Shares reacquired | ||||||||||||||||||||||||||||||||
Class A | (3,077,051 | ) | $(33,078,417 | ) | (1,047,468 | ) | $(12,097,690 | ) | (6,201,123 | ) | $(67,582,889 | ) | (3,250,453 | ) | $(38,134,479 | ) | ||||||||||||||||
Class B | (119,521 | ) | (1,286,214 | ) | (82,662 | ) | (953,018 | ) | (131,068 | ) | (1,422,153 | ) | (132,997 | ) | (1,562,132 | ) | ||||||||||||||||
(3,196,572 | ) | $(34,364,631 | ) | (1,130,130 | ) | $(13,050,708 | ) | (6,332,191 | ) | $(69,005,042 | ) | (3,383,450 | ) | $(39,696,611 | ) | |||||||||||||||||
Net change | ||||||||||||||||||||||||||||||||
Class A | (1,246,435 | ) | $(13,195,189 | ) | 148,167 | $1,721,097 | (4,193,120 | ) | $(45,453,516 | ) | 186,192 | $2,256,448 | ||||||||||||||||||||
Class B | (101,334 | ) | (1,087,145 | ) | 5,219 | 59,548 | (87,905 | ) | (942,851 | ) | (38,871 | ) | (457,636 | ) | ||||||||||||||||||
(1,347,769 | ) | $(14,282,334 | ) | 153,386 | $1,780,645 | (4,281,025 | ) | $(46,396,367 | ) | 147,321 | $1,798,812 |
(6) Line of Credit
Each fund and certain other funds managed by MFS participate in a $1.1 billion unsecured committed line of credit, subject to a $1 billion sublimit, provided by a syndication of banks under a credit agreement. Borrowings may be made for temporary financing needs. Interest is charged to each fund, based on its borrowings, generally at a rate equal to the higher of the Federal Reserve funds rate or one month LIBOR plus an agreed upon spread. A commitment fee, based on the average daily, unused portion of the committed line of credit, is allocated among the participating funds at the end of each calendar quarter. In addition, each fund and other funds managed by MFS have established unsecured uncommitted borrowing arrangements with certain banks for temporary financing needs. Interest is charged to each fund, based on its borrowings, at a rate equal to the Federal Reserve funds rate plus an agreed upon spread. For the year ended March 31, 2014, each fund’s commitment fee and interest expense were as follows and are included in “Miscellaneous” expense in the Statements of Operations:
Alabama Fund | Arkansas Fund | California Fund | Georgia Fund | Maryland Fund | Massachusetts Fund | |||||||||||||||||||
Commitment Fee | $316 | $1,075 | $1,480 | $373 | $531 | $1,361 | ||||||||||||||||||
Interest Expense | — | — | — | — | — | — |
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(7) | Transactions in Underlying Affiliated Funds - Affiliated Issuers |
An affiliated issuer of a fund may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. For the purposes of this report, each fund assumes the MFS Institutional Money Market Portfolio to be an affiliated issuer. Each fund’s transactions in the MFS Institutional Money Market Portfolio for the year ended March 31, 2014, are as follows:
Underlying Affiliated Fund - MFS Institutional Money Market Portfolio | ||||||||||||||||
Beginning Shares/Par Amount | Aquisitions Shares/Par Amount | Dispositions Shares/Par Amount | Ending Shares/Par Amount | |||||||||||||
Alabama Fund | 1,531,701 | 21,183,167 | (21,737,100) | 977,768 | ||||||||||||
Arkansas Fund | 3,067,890 | 71,213,146 | (73,904,953) | 376,083 | ||||||||||||
California Fund | 3,971,626 | 99,066,293 | (101,479,947) | 1,557,972 | ||||||||||||
Georgia Fund | 3,019,083 | 24,016,289 | (26,051,735) | 983,637 | ||||||||||||
Maryland Fund | 3,980,610 | 34,721,225 | (37,179,532) | 1,522,303 | ||||||||||||
Massachusetts Fund | 7,304,229 | 87,961,175 | (92,736,713) | 2,528,691 | ||||||||||||
Realized Gain (Loss) | Capital Gain Distributions | Dividend Income | Ending Value | |||||||||||||
Alabama Fund | $— | $— | $989 | $977,768 | ||||||||||||
Arkansas Fund | — | — | 3,970 | 376,083 | ||||||||||||
California Fund | — | — | 5,018 | 1,557,972 | ||||||||||||
Georgia Fund | — | — | 1,636 | 983,637 | ||||||||||||
Maryland Fund | — | — | 3,042 | 1,522,303 | ||||||||||||
Massachusetts Fund | — | — | 5,104 | 2,528,691 |
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of MFS Municipal Series Trust and the Shareholders of MFS Alabama Municipal Bond Fund, MFS Arkansas Municipal Bond Fund, MFS California Municipal Bond Fund, MFS Georgia Municipal Bond Fund, MFS Maryland Municipal Bond Fund and MFS Massachusetts Municipal Bond Fund:
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of MFS Alabama Municipal Bond Fund, MFS Arkansas Municipal Bond Fund, MFS California Municipal Bond Fund, MFS Georgia Municipal Bond Fund, MFS Maryland Municipal Bond Fund and MFS Massachusetts Municipal Bond Fund (each a series of MFS Municipal Series Trust) (the “Funds”) as of March 31, 2014, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of March 31, 2014, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2014, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
May 13, 2014
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TRUSTEES AND OFFICERS — IDENTIFICATION AND BACKGROUND
The Trustees and Officers of the Trust, as of May 1, 2014, are listed below, together with their principal occupations during the past five years. (Their titles may have varied during that period.) The address of each Trustee and Officer is 111 Huntington Avenue, Boston, Massachusetts 02199-7618. It is expected that the Board will appoint Mr. Timothy M. Fagan as Chief Compliance Officer of the MFS Funds on November 1, 2014.
Name, Age | Position(s) Held with Fund | Trustee/Officer Since (h) | Principal Occupations During the Past Five Years | Other Directorships (j) | ||||
INTERESTED TRUSTEES | ||||||||
Robert J. Manning (k) (Age 50) | Trustee | February 2004 | Massachusetts Financial Services Company, Chairman, Chief Executive Officer and Director; President (until 2009); Chief Investment Officer (until 2010) | N/A | ||||
Robin A. Stelmach (k) (Age 52) | Trustee | January 2014 | Massachusetts Financial Services Company, Executive Vice President and Chief Operating Officer | N/A | ||||
INDEPENDENT TRUSTEES | ||||||||
David H. Gunning (Age 71) | Trustee and Chair of Trustees | January 2004 | Private investor | Lincoln Electric Holdings, Inc. (welding equipment manufacturer), Director; Development Alternatives, Inc. (consulting), Director/Non-Executive Chairman | ||||
Steven E. Buller (Age 62) | Trustee | February 2014 | Chairman, Financial Accounting Standards Advisory Council; Standing Advisory Group, Public Company Accounting Oversight Board, Member; BlackRock, Inc. (investment management), Managing Director (until 2014), BlackRock Finco (investment management), UK, Director (until 2014) | N/A | ||||
Robert E. Butler (Age 72) | Trustee | January 2006 | Consultant – investment company industry regulatory and compliance matters | N/A | ||||
Maureen R. Goldfarb (Age 59) | Trustee | January 2009 | Private investor | N/A | ||||
William R. Gutow (Age 72) | Trustee | December 1993 | Private investor and real estate consultant; Capitol Entertainment Management Company (video franchise), Vice Chairman | Texas Donuts (donut franchise), Vice Chairman (until 2010) | ||||
Michael Hegarty (Age 69) | Trustee | December 2004 | Private investor | Brookfield Office Properties, Inc. (real estate), Director; Rouse Properties Inc. (real estate), Director; Capmark Financial Group Inc. (real estate), Director | ||||
John P. Kavanaugh (Age 59) | Trustee | January 2009 | Private investor | N/A | ||||
Laurie J. Thomsen (Age 56) | Trustee | March 2005 | Private investor; New Profit, Inc. (venture philanthropy), Executive Partner (until 2010) | The Travelers Companies (insurance), Director | ||||
Robert W. Uek (Age 72) | Trustee | January 2006 | Consultant to investment company industry | N/A | ||||
OFFICERS | ||||||||
John M. Corcoran (k) (Age 49) | President | October 2008 | Massachusetts Financial Services Company, Senior Vice President | N/A | ||||
Christopher R. Bohane (k) (Age 40) | Assistant Secretary and Assistant Clerk | July 2005 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | N/A |
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Trustees and Officers – continued
Name, Age | Position(s) Held with Fund | Trustee/Officer Since (h) | Principal Occupations During the Past Five Years | Other Directorships (j) | ||||
Kino Clark (k) (Age 45) | Assistant Treasurer | January 2012 | Massachusetts Financial Services Company, Vice President | N/A | ||||
Thomas H. Connors (k) (Age 54) | Assistant Secretary and Assistant Clerk | September 2012 | Massachusetts Financial Services Company, Vice President and Senior Counsel; Deutsche Investment Management Americas Inc. (financial service provider), Director and Senior Counsel (until 2012) | N/A | ||||
Ethan D. Corey (k) (Age 50) | Assistant Secretary and Assistant Clerk | July 2005 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | N/A | ||||
David L. DiLorenzo (k) (Age 45) | Treasurer | July 2005 | Massachusetts Financial Services Company, Senior Vice President | N/A | ||||
Robyn L. Griffin (Age 38) | Assistant Independent Chief Compliance Officer | August 2008 | Griffin Compliance LLC (provider of compliance services), Principal | N/A | ||||
Brian E. Langenfeld (k) (Age 41) | Assistant Secretary and Assistant Clerk | June 2006 | Massachusetts Financial Services Company, Vice President and Senior Counsel | N/A | ||||
Susan S. Newton (k) (Age 64) | Assistant Secretary and Assistant Clerk | May 2005 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | N/A | ||||
Susan A. Pereira (k) (Age 43) | Assistant Secretary and Assistant Clerk | July 2005 | Massachusetts Financial Services Company, Vice President and Senior Counsel | N/A | ||||
Kasey L. Phillips (k) (Age 43) | Assistant Treasurer | September 2012 | Massachusetts Financial Services Company, Vice President; Wells Fargo Funds Management, LLC, Senior Vice President, Fund Treasurer (until 2012) | N/A | ||||
Mark N. Polebaum (k) (Age 61) | Secretary and Clerk | January 2006 | Massachusetts Financial Services Company, Executive Vice President, General Counsel and Secretary | N/A | ||||
Frank L. Tarantino (l) (Age 70) | Independent Chief Compliance Officer | June 2004 | Tarantino LLC (provider of compliance services), Principal | N/A | ||||
Richard S. Weitzel (k) (Age 43) | Assistant Secretary and Assistant Clerk | October 2007 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | N/A | ||||
James O. Yost (k) (Age 53) | Deputy Treasurer | September 1990 | Massachusetts Financial Services Company, Senior Vice President | N/A |
(h) | Date first appointed to serve as Trustee/officer of an MFS Fund. Each Trustee has served continuously since appointment unless indicated otherwise. For the period from December 15, 2004 until February 22, 2005, Mr. Manning served as Advisory Trustee. For the period October 2008, until January 2012, Mr. Corcoran served as Treasurer of the Funds. Prior to January 2012, Messrs. DiLorenzo and Yost served as Assistant Treasurers of the Funds. |
(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 position with MFS. The address of MFS is 111 Huntington Avenue, Boston, Massachusetts 02199-7618. |
(l) | Mr. Tarantino will retire as Independent Chief Compliance Officer of the MFS Funds on October 31, 2014. It is expected that Mr. Tarantino will continue after that date as an Independent Senior Officer of the MFS Funds. |
Each Trustee (except Ms. Stelmach and Mr. Buller) has been elected by shareholders and each Trustee and officer holds office until his or her successor is chosen and qualified or until his or her earlier death, resignation, retirement or removal. The Trust does not hold annual meetings for the purpose of electing Trustees, and Trustees are not elected for fixed terms. Messrs. Butler, Kavanaugh, Uek and Ms. Thomsen are members of the Trust’s Audit Committee.
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Trustees and Officers – continued
Each of the Fund’s Trustees and officers holds comparable positions with certain other funds of which MFS or a subsidiary is the investment adviser or distributor, and, in the case of the officers, with certain affiliates of MFS. As of January 1, 2014, the Trustees served as board members of 142 funds within the MFS Family of Funds.
The Statement of Additional Information for the Fund includes further information about the Trustees and is available without charge upon request by calling 1-800-225-2606.
Investment Adviser Massachusetts Financial Services Company 111 Huntington Avenue Boston, MA 02199-7618 Distributor MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618 Portfolio Manager Michael Dawson | Custodian JPMorgan Chase Bank, NA 4 Metrotech Center New York, NY 11245 Independent Registered Public Accounting Firm Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 |
78
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BOARD REVIEW OF INVESTMENT ADVISORY AGREEMENT
A discussion regarding the Board’s most recent review and renewal of each fund’s Investment Advisory Agreement with MFS is available by clicking on the fund’s name under “Mutual Funds” in the “Products” section of the MFS Web site (mfs.com).
PROXY VOTING POLICIES AND INFORMATION
MFS votes proxies on behalf of the funds pursuant to proxy voting policies and procedures that are available without charge, upon request, by calling 1-800-225-2606, by visiting the Proxy Voting section of mfs.com or by visiting the SEC’s Web site at http://www.sec.gov.
Information regarding how each fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available without charge by visiting the Proxy Voting section of mfs.com or by visiting the SEC’s Web site at http://www.sec.gov.
QUARTERLY PORTFOLIO DISCLOSURE
Each fund will file a complete schedule of portfolio holdings with the Securities and Exchange Commission (the Commission) for the first and third quarters of each fiscal year on Form N-Q. A shareholder can obtain the quarterly portfolio holdings report at mfs.com. Each fund’s Form N-Q is also available on the EDGAR database on the Commission’s Internet Website at http://www.sec.gov, and may be reviewed and copied at the:
Public Reference Room
Securities and Exchange Commission
100 F Street, NE, Room 1580
Washington, D.C. 20549
Information on the operation of the Public Reference Room may be obtained by calling the Commission at 1-800-SEC-0330. Copies of each fund’s Form N-Q also may be obtained, upon payment of a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov or by writing the Public Reference Section at the above address.
From time to time, MFS may post important information about each fund or the MFS funds on the MFS web site (mfs.com). This information is available by visiting the “News & Commentary” section of mfs.com or by clicking on the fund’s name under “Mutual Funds” in the “Products” section of mfs.com.
FEDERAL TAX INFORMATION (unaudited)
The funds will notify shareholders of amounts for use in preparing 2014 income tax forms in January 2015. The following information is provided pursuant to provisions of the Internal Revenue Code.
Of the dividends paid from net investment income during the fiscal year, the following percentages were designated as exempt interest dividends for federal income tax purposes. If each fund has earned income on private activity bonds, a portion of the dividends paid may be considered a tax preference item for purposes of computing a shareholder’s alternative minimum tax.
Exempt Interest Dividends | ||||
Alabama Fund | 100.00% | |||
Arkansas Fund | 99.58% | |||
California Fund | 100.00% | |||
Georgia Fund | 100.00% | |||
Maryland Fund | 100.00% | |||
Massachusetts Fund | 100.00% |
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rev. 3/11
| WHAT DOES MFS DO WITH YOUR
|
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. |
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Page 2 |
Who we are | ||
Who is providing this notice? | MFS Funds, MFS Investment Management, MFS Institutional Advisors, Inc., MFS Fund Distributors, Inc., MFS Heritage Trust Company, and MFS Service Center, Inc. |
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 and 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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Save paper with eDelivery.
| MFS® will send you prospectuses, |
reports, and proxies directly via e-mail so you will get information faster with less mailbox clutter.
To sign up:
1. Go to mfs.com.
2. Log in via MFS® Access.
3. Select eDelivery.
If you own your MFS fund shares through a financial institution or a retirement plan, MFS® TALK, MFS® Access, or eDelivery may not be available to you.
WEB SITE
mfs.com
MFS TALK
1-800-637-8255
24 hours a day
ACCOUNT SERVICE AND LITERATURE
Shareholders
1-800-225-2606
Financial advisors
1-800-343-2829
Retirement plan services
1-800-637-1255
MAILING ADDRESS
MFS Service Center, Inc.
P.O. Box 55824
Boston, MA 02205-5824
OVERNIGHT MAIL
MFS Service Center, Inc.
c/o Boston Financial Data Services
30 Dan Road
Canton, MA 02021-2809
Table of Contents
ANNUAL REPORT
March 31, 2014
MFS® MUNICIPAL SERIES TRUST
For the states of:
Mississippi, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia
MSTB-ANN
Table of Contents
MFS® MUNICIPAL SERIES TRUST
For the states of: Mississippi, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia
The report is prepared for the general information of shareholders. It is authorized for distribution to prospective investors only when preceded or accompanied by a current prospectus.
NOT FDIC INSURED Ÿ MAY LOSE VALUE Ÿ NO BANK GUARANTEE
Table of Contents
LETTER FROM THE CHAIRMAN AND CEO
Dear Shareholders:
The pace of U.S. economic growth slowed early in 2014, largely because of harsh
winter weather. However, the U.S. labor market, consumer confidence and other economic data have all pointed to recovery. The U.S. Federal Reserve’s steady, gradual removal of its bond-buying stimulus, after initially causing concern, is providing some consistency, which can inspire consumer and investor confidence.
Global economic uncertainty and geopolitical tensions have added to market volatility. The eurozone, however, is making progress in its economic recovery. Japan’s progress in its battle to end deflation is expected to experience a temporary setback on the heels of the country’s sales tax increase, introduced in April.
The world’s largest economic concern remains the slowdown in China’s pace of growth as it shifts toward a more consumer-oriented economy. Any reduction in China’s economic growth rate is likely to have a ripple effect on its many trading partners.
In uncertain times such as these, it is particularly important to remember that managing risk should always be a top priority. At MFS®, active risk management is an integral part of our collaborative process. Our global team of investment professionals shares ideas and evaluates opportunities that span continents, investment disciplines and asset classes. Our goal is to build better insights, and ultimately better results, for our clients.
We understand and appreciate the economic challenges investors face, and we believe in the value of maintaining a long-term view and applying proven principles, such as asset allocation and diversification. We are confident that our unique approach can serve investors well as they work with their financial advisors to identify and pursue the most suitable opportunities.
Respectfully,
Robert J. Manning
Chairman and Chief Executive Officer
MFS Investment Management
May 13, 2014
The opinions expressed in this letter are subject to change, may not be relied upon for investment advice, and no forecasts can be guaranteed.
1
Table of Contents
MFS Mississippi Municipal Bond Fund
Portfolio structure (i)
Top five industries (i) | ||||
State & Local Agencies | 23.8% | |||
Healthcare Revenue – Hospitals | 17.3% | |||
Universities – Colleges | 13.7% | |||
General Obligations – General Purpose | 8.2% | |||
Water & Sewer Utility Revenue | 7.1% | |||
Composition including fixed income credit quality (a)(i) | ||||
AAA | 5.6% | |||
AA | 42.0% | |||
A | 32.8% | |||
BBB | 12.7% | |||
BB | 1.4% | |||
B | 0.8% | |||
CCC | 1.2% | |||
Not Rated | 2.5% | |||
Cash & Other | 1.0% |
Portfolio facts (i) | ||||
Average Duration (d) | 7.8 | |||
Average Effective Maturity (m) | 15.0 yrs. | |||
Jurisdiction (i) | ||||
Mississippi | 76.9% | |||
Puerto Rico | 2.7% | |||
New York | 2.6% | |||
Massachusetts | 2.4% | |||
U.S. Virgin Islands | 1.8% | |||
Illinois | 1.8% | |||
Wisconsin | 1.3% | |||
California | 1.2% | |||
New Jersey | 1.2% | |||
Guam | 1.2% | |||
Tennessee | 1.0% | |||
New Hampshire | 1.0% | |||
Kentucky | 0.9% | |||
Michigan | 0.8% | |||
Virginia | 0.6% | |||
Colorado | 0.5% | |||
Texas | 0.5% | |||
Washington | 0.3% | |||
Florida | 0.3% |
(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. 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, including fixed income futures contracts, which have not been rated by any rating agency. The fund may not hold all of these instruments. 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 market 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 market value. The bond component will include any accrued interest amounts. |
(m) | In determining an 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. |
Where the fund holds convertible bonds, these are treated as part of the equity portion of the portfolio.
Cash & Other includes cash, other assets less liabilities, offsets to derivative positions, and short-term securities.
Percentages are based on net assets as of 3/31/14.
The portfolio is actively managed and current holdings may be different.
2
Table of Contents
Portfolio Composition – continued
MFS New York Municipal Bond Fund
Portfolio structure (i)
Top five industries (i) | ||||
Universities – Colleges | 18.5% | |||
State & Local Agencies | 11.9% | |||
Healthcare Revenue – Hospitals | 9.7% | |||
Tax – Other | 9.1% | |||
General Obligations – General Purpose | 6.7% | |||
Composition including fixed income credit quality (a)(i) | ||||
AAA | 7.1% | |||
AA | 35.4% | |||
A | 27.7% | |||
BBB | 18.6% | |||
BB | 4.4% | |||
B | 2.5% | |||
Not Rated | 2.7% | |||
Cash & Other | 1.6% |
Portfolio facts (i) | ||||
Average Duration (d) | 8.4 | |||
Average Effective Maturity (m) | 17.1 yrs. | |||
Jurisdiction (i) | ||||
New York | 83.4% | |||
Illinois | 2.1% | |||
New Jersey | 2.0% | |||
California | 1.4% | |||
Colorado | 1.3% | |||
Guam | 1.1% | |||
U.S. Virgin Islands | 1.1% | |||
Florida | 0.9% | |||
Puerto Rico | 0.8% | |||
Texas | 0.8% | |||
Ohio | 0.6% | |||
Wisconsin | 0.6% | |||
Louisiana | 0.6% | |||
Pennsylvania | 0.5% | |||
Washington | 0.3% | |||
Indiana | 0.3% | |||
Kentucky | 0.2% | |||
Tennessee | 0.2% | |||
Massachusetts | 0.1% | |||
Mississippi | 0.1% | |||
New Hampshire (o) | 0.0% |
(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. 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, including fixed income futures contracts, which have not been rated by any rating agency. The fund may not hold all of these instruments. 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 market 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 market value. The bond component will include any accrued interest amounts. |
(m) | In determining an 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%. |
Where the fund holds convertible bonds, these are treated as part of the equity portion of the portfolio.
Cash & Other includes cash, other assets less liabilities, offsets to derivative positions, and short-term securities.
Percentages are based on net assets as of 3/31/14.
The portfolio is actively managed and current holdings may be different.
3
Table of Contents
Portfolio Composition – continued
MFS North Carolina Municipal Bond Fund
Portfolio structure (i)
Top five industries (i) | ||||
Healthcare Revenue – Hospitals | 19.1% | |||
Universities – Colleges | 14.5% | |||
State & Local Agencies | 11.0% | |||
Water & Sewer Utility Revenue | 9.3% | |||
Utilities – Municipal Owned | 8.0% | |||
Composition including fixed income credit quality (a)(i) | ||||
AAA | 13.4% | |||
AA | 40.4% | |||
A | 22.8% | |||
BBB | 17.1% | |||
BB | 1.3% | |||
B | 1.4% | |||
Not Rated | 3.2% | |||
Cash & Other | 0.4% |
Portfolio facts (i) | ||||
Average Duration (d) | 8.6 | |||
Average Effective Maturity (m) | 16.5 yrs. | |||
Jurisdiction (i) | ||||
North Carolina | 76.5% | |||
Puerto Rico | 4.0% | |||
Illinois | 3.3% | |||
New Jersey | 2.0% | |||
California | 1.4% | |||
Guam | 1.4% | |||
U.S. Virgin Islands | 1.3% | |||
Michigan | 1.2% | |||
New York | 1.2% | |||
Tennessee | 1.0% | |||
Wisconsin | 0.8% | |||
Kentucky | 0.8% | |||
Florida | 0.7% | |||
New Hampshire | 0.6% | |||
Virginia | 0.6% | |||
Louisiana | 0.6% | |||
Colorado | 0.5% | |||
Pennsylvania | 0.4% | |||
Ohio | 0.4% | |||
Texas | 0.3% | |||
Indiana | 0.3% | |||
Washington | 0.3% |
(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. 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, including fixed income futures contracts, which have not been rated by any rating agency. The fund may not hold all of these instruments. 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 market 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 market value. The bond component will include any accrued interest amounts. |
(m) | In determining an 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. |
Where the fund holds convertible bonds, these are treated as part of the equity portion of the portfolio.
Cash & Other includes cash, other assets less liabilities, offsets to derivative positions, and short-term securities.
Percentages are based on net assets as of 3/31/14.
The portfolio is actively managed and current holdings may be different.
4
Table of Contents
Portfolio Composition – continued
MFS Pennsylvania Municipal Bond Fund
Portfolio structure (i)
Top five industries (i) | ||||
Healthcare Revenue – Hospitals | 20.0% | |||
Universities – Colleges | 17.2% | |||
General Obligations – Schools | 12.8% | |||
General Obligations – General Purpose | 9.7% | |||
Water & Sewer Utility Revenue | 6.1% | |||
Composition including fixed income credit quality (a)(i) | ||||
AAA | 2.6% | |||
AA | 26.5% | |||
A | 32.5% | |||
BBB | 22.0% | |||
BB | 6.5% | |||
B | 2.4% | |||
Not Rated | 4.8% | |||
Cash & Other | 2.7% |
Portfolio facts (i) | ||||
Average Duration (d) | 8.6 | |||
Average Effective Maturity (m) | 16.7 yrs. | |||
Jurisdiction (i) | ||||
Pennsylvania | 79.8% | |||
Illinois | 2.9% | |||
Puerto Rico | 2.4% | |||
New Jersey | 1.7% | |||
California | 1.3% | |||
Guam | 1.3% | |||
Florida | 0.9% | |||
Tennessee | 0.9% | |||
Colorado | 0.9% | |||
Texas | 0.8% | |||
Kentucky | 0.7% | |||
Virginia | 0.7% | |||
Louisiana | 0.6% | |||
Michigan | 0.5% | |||
Wisconsin | 0.5% | |||
Indiana | 0.3% | |||
U.S. Virgin Islands | 0.3% | |||
New York | 0.3% | |||
Georgia | 0.3% | |||
Ohio | 0.2% | |||
New Hampshire (o) | 0.0% |
(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. 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, including fixed income futures contracts, which have not been rated by any rating agency. The fund may not hold all of these instruments. 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 market 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 market value. The bond component will include any accrued interest amounts. |
(m) | In determining an 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%. |
Where the fund holds convertible bonds, these are treated as part of the equity portion of the portfolio.
Cash & Other includes cash, other assets less liabilities, offsets to derivative positions, and short-term securities.
Percentages are based on net assets as of 3/31/14.
The portfolio is actively managed and current holdings may be different.
5
Table of Contents
Portfolio Composition – continued
MFS South Carolina Municipal Bond Fund
Portfolio structure (i)
Top five industries (i) | ||||
Healthcare Revenue – Hospitals | 17.7% | |||
Water & Sewer Utility Revenue | 14.5% | |||
General Obligations – Schools | 10.1% | |||
Utilities – Municipal Owned | 8.6% | |||
General Obligations – General Purpose | 7.4% | |||
Composition including fixed income credit quality (a)(i) | ||||
AAA | 3.8% | |||
AA | 46.7% | |||
A | 29.5% | |||
BBB | 12.9% | |||
BB | 1.4% | |||
B | 1.9% | |||
CCC | 0.1% | |||
Not Rated | 1.4% | |||
Cash & Other | 2.3% |
Portfolio facts (i) | ||||
Average Duration (d) | 8.4 | |||
Average Effective Maturity (m) | 15.8 yrs. | |||
Jurisdiction (i) | ||||
South Carolina | 80.8% | |||
Puerto Rico | 2.0% | |||
California | 1.8% | |||
U.S. Virgin Islands | 1.5% | |||
Michigan | 1.3% | |||
Illinois | 1.2% | |||
Kentucky | 1.2% | |||
Tennessee | 1.0% | |||
New Jersey | 0.8% | |||
New York | 0.7% | |||
Florida | 0.7% | |||
Guam | 0.7% | |||
Wisconsin | 0.6% | |||
Colorado | 0.6% | |||
New Hampshire | 0.5% | |||
Virginia | 0.5% | |||
Louisiana | 0.5% | |||
Indiana | 0.5% | |||
Georgia | 0.3% | |||
Washington | 0.2% | |||
Ohio | 0.2% | |||
Texas | 0.1% |
(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. 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, including fixed income futures contracts, which have not been rated by any rating agency. The fund may not hold all of these instruments. 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 market 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 market value. The bond component will include any accrued interest amounts. |
(m) | In determining an 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. |
Where the fund holds convertible bonds, these are treated as part of the equity portion of the portfolio.
Cash & Other includes cash, other assets less liabilities, offsets to derivative positions, and short-term securities.
Percentages are based on net assets as of 3/31/14.
The portfolio is actively managed and current holdings may be different.
6
Table of Contents
Portfolio Composition – continued
MFS Tennessee Municipal Bond Fund
Portfolio structure (i)
Top five industries (i) | ||||
General Obligations – General Purpose | 25.2% | |||
Water & Sewer Utility Revenue | 14.1% | |||
Healthcare Revenue – Hospitals | 11.4% | |||
State & Local Agencies | 6.9% | |||
Utilities – Municipal Owned | 6.8% | |||
Composition including fixed income credit quality (a)(i) | ||||
AAA | 9.1% | |||
AA | 57.8% | |||
A | 18.5% | |||
BBB | 9.1% | |||
BB | 1.0% | |||
B | 0.7% | |||
Not Rated | 1.6% | |||
Cash & Other | 2.2% |
Portfolio facts (i) | ||||
Average Duration (d) | 8.5 | |||
Average Effective Maturity (m) | 15.1 yrs. | |||
Jurisdiction (i) | ||||
Tennessee | 83.6% | |||
Puerto Rico | 2.0% | |||
New York | 1.8% | |||
Kentucky | 1.8% | |||
Guam | 1.1% | |||
Florida | 1.1% | |||
California | 1.0% | |||
New Jersey | 1.0% | |||
Wisconsin | 0.8% | |||
U.S. Virgin Islands | 0.7% | |||
Illinois | 0.6% | |||
New Hampshire | 0.5% | |||
Virginia | 0.5% | |||
Colorado | 0.5% | |||
Texas | 0.4% | |||
Georgia | 0.3% | |||
Mississippi | 0.1% |
(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. 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, including fixed income futures contracts, which have not been rated by any rating agency. The fund may not hold all of these instruments. 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 market 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 market value. The bond component will include any accrued interest amounts. |
(m) | In determining an 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. |
Where the fund holds convertible bonds, these are treated as part of the equity portion of the portfolio.
Cash & Other includes cash, other assets less liabilities, offsets to derivative positions, and short-term securities.
Percentages are based on net assets as of 3/31/14.
The portfolio is actively managed and current holdings may be different.
7
Table of Contents
Portfolio Composition – continued
MFS Virginia Municipal Bond Fund
Portfolio structure (i)
Top five industries (i) | ||||
Water & Sewer Utility Revenue | 19.1% | |||
Healthcare Revenue – Hospitals | 18.3% | |||
General Obligations – General Purpose | 13.1% | |||
State & Local Agencies | 11.7% | |||
Multi-Family Housing Revenue | 5.9% | |||
Composition including fixed income credit quality (a)(i) | ||||
AAA | 21.7% | |||
AA | 46.8% | |||
A | 13.3% | |||
BBB | 10.8% | |||
BB | 3.6% | |||
B | 0.8% | |||
Not Rated | 4.0% | |||
Cash & Other | (1.0)% |
Portfolio facts (i) | ||||
Average Duration (d) | 8.6 | |||
Average Effective Maturity (m) | 16.4 yrs. | |||
Jurisdiction (i) | ||||
Virginia | 82.4% | |||
District of Columbia | 2.8% | |||
Puerto Rico | 1.7% | |||
Tennessee | 1.4% | |||
Guam | 1.4% | |||
Illinois | 1.3% | |||
U.S. Virgin Islands | 1.3% | |||
Wisconsin | 1.2% | |||
New York | 1.2% | |||
Kentucky | 0.8% | |||
Michigan | 0.8% | |||
New Jersey | 0.6% | |||
Louisiana | 0.6% | |||
Ohio | 0.5% | |||
California | 0.5% | |||
Colorado | 0.5% | |||
Pennsylvania | 0.5% | |||
Texas | 0.5% | |||
Massachusetts | 0.4% | |||
Washington | 0.3% | |||
New Hampshire | 0.2% | |||
Indiana | 0.1% |
(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. 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, including fixed income futures contracts, which have not been rated by any rating agency. The fund may not hold all of these instruments. 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 market 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 market value. The bond component will include any accrued interest amounts. |
(m) | In determining an 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. |
From time to time “Cash & Other” may be negative due to timing of cash receipts and/or equivalent exposure from any derivative holdings.
Where the fund holds convertible bonds, these are treated as part of the equity portion of the portfolio.
Cash & Other includes cash, other assets less liabilities, offsets to derivative positions, and short-term securities.
Percentages are based on net assets as of 3/31/14.
The portfolio is actively managed and current holdings may be different.
8
Table of Contents
Portfolio Composition – continued
MFS West Virginia Municipal Bond Fund
Portfolio structure (i)
Top five industries (i) | ||||
Universities – Colleges | 17.9% | |||
Healthcare Revenue – Hospitals | 14.6% | |||
Miscellaneous Revenue – Other | 11.3% | |||
State & Local Agencies | 9.8% | |||
Water & Sewer Utility Revenue | 9.7% | |||
Composition including fixed income credit quality (a)(i) | ||||
AAA | 3.7% | |||
AA | 33.4% | |||
A | 36.6% | |||
BBB | 7.3% | |||
BB | 1.4% | |||
B | 0.7% | |||
Not Rated | 13.0% | |||
Cash & Other | 3.9% |
Portfolio facts (i) | ||||
Average Duration (d) | 8.0 | |||
Average Effective Maturity (m) | 15.8 yrs. | |||
Jurisdiction (i) | ||||
West Virginia | 76.1% | |||
Puerto Rico | 3.4% | |||
New York | 1.9% | |||
Illinois | 1.8% | |||
Kentucky | 1.8% | |||
Guam | 1.7% | |||
Massachusetts | 1.7% | |||
Michigan | 1.5% | |||
Florida | 1.4% | |||
Tennessee | 1.2% | |||
New Jersey | 1.1% | |||
California | 0.7% | |||
U.S. Virgin Islands | 0.6% | |||
Washington | 0.5% | |||
Texas | 0.3% | |||
Indiana | 0.3% | |||
Mississippi | 0.1% |
(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. 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, including fixed income futures contracts, which have not been rated by any rating agency. The fund may not hold all of these instruments. 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 market 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 market value. The bond component will include any accrued interest amounts. |
(m) | In determining an 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. |
Where the fund holds convertible bonds, these are treated as part of the equity portion of the portfolio.
Cash & Other includes cash, other assets less liabilities, offsets to derivative positions, and short-term securities.
Percentages are based on net assets as of 3/31/14.
The portfolio is actively managed and current holdings may be different.
9
Table of Contents
Summary of Results
For the twelve months ended March 31, 2014, Class A shares of each fund, at net asset value, underperformed the Barclays Municipal Bond Index. These included the municipal bond funds of Mississippi, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia. The performance for the individual funds and the benchmark are set forth in the Performance Summary.
Market Environment
Early in the period, jitters over a banking crisis in Cyprus was more than offset by ongoing accommodative global monetary policy and improving economic data, resulting in gains in both equity and fixed income markets. As the period progressed, concerns that the US Federal Reserve (“Fed”) would begin tapering its quantitative easing (“QE”) program caused sovereign bond yields to spike, credit spreads to widen, and equity valuations to fall. Equities subsequently outperformed fixed income in response to the improved economic fundamentals.
Toward the middle of the period, the Fed’s decision to postpone QE tapering surprised markets. Favorable market reactions were tempered, however, by tense negotiations over US fiscal policy which resulted in a 16-day partial shutdown of the federal government and a short-term extension in the debt ceiling. The volatility was short-lived, however, as an extension of budget and debt ceiling deadlines allowed the government to re-open, and subsequent economic data reflected moderate but resilient US growth. Also well-received was the decision by the European Central Bank to cut its policy rate as inflation pressures waned in the region. In addition, equity investors appeared to have concluded that there would be no major change in US monetary policy as a result of the nomination of Janet Yellen as the new Fed Chair for a term beginning in early 2014.
Later in the period, emerging market stresses resurfaced as political unrest, an escalation of tensions due to Russia’s annexation of a portion of the Ukraine, falling currencies and slowing growth appeared to have impacted investor sentiment. Markets were also forced to contend with some unexpected weakness in the US economy due largely to weather-related interruptions to hiring and spending plans as well as production schedules. Once again, the setback was short-lived as the major US equity indexes traded near their all-time highs by the end of the period.
Over the twelve months ended March 31, 2014, municipal bond yields generally increased as fixed income market activity was led by the Fed’s signal last June 2013 that it would begin to reduce monthly purchases of US Treasury and mortgage-backed securities; the reduction in the size of the purchase program actually began in December 2013, when 10-year US Treasury yields peaked at 3%. Municipal bond prices fell accordingly during this time frame after the Fed announced it might taper asset purchases. The rise in municipal bond yields was more pronounced in the long end of the yield curve (y) relative to intermediate-term bonds as municipal bond mutual fund redemptions, as well as reduced liquidity, lessened the demand for longer maturity bonds.
Further, more flames were fanned by credit concerns, first by Detroit’s Chapter 9 filing in July, and then by increased scrutiny of Puerto Rico’s weakened fiscal position in late August. Since January 2014, municipal market supply/demand dynamics have improved enough to enable municipal bonds to rally as retail investors and hedge funds emerged as the market’s primary source of demand. The supply/demand dynamics were further supported by a reduced level of issuance during Q1 2014 as well as a more stable trend in mutual fund flows.
With the risks of a restructuring of Puerto Rico debt deferred after the Commonwealth successfully issued a $3.5 billion General Obligation bond deal, concerns regarding negative headline risk in the municipal market have also waned for the time being.
Factors Affecting Performance
The funds’ longer duration (d) stance relative to the Barclays Municipal Bond Index negatively impacted relative performance as credit concerns in the municipal bond markets and the threat of Fed tapering forced yields higher during the reporting period.
The Barclays Municipal Bond Index is a broad-based index comprised of municipal bonds issued within the 50 states and the District of Columbia as well as U.S territories and possessions such as Guam, Puerto Rico, and the Virgin Islands.
Among jurisdictions, overweight positions in municipal bonds of Puerto Rico were a primary source of underperformance across all funds given heightened concern over the US territory’s financial difficulties during the period. Underweight positions in municipal bonds of California detracted from relative returns in all funds.
Across sectors, the utilities, general obligation, and sales/excise tax sectors were notable detractors from the relative performance of all funds. An overweight allocation to “BB” and “BBB” rated (r) securities also dampened relative performance across all funds.
Respectfully,
Michael Dawson
Portfolio Manager
(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. |
10
Table of Contents
Management Review – continued
(r) | Bonds rated “BBB”, “Baa”, or higher are considered investment grade; bonds rated “BB”, “Ba”, or below are considered non-investment grade. The sources for bond quality ratings are Moody’s Investors Service, Standard & Poor’s and Fitch, Inc. and are applied using 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 and Fitch scale (e.g., AAA). For securities which are not rated by any of the three 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. |
The views expressed in this report are those of the portfolio manager only through the end of the period of the report as stated on the cover and do not necessarily reflect the views of MFS or any other person in the MFS organization. These views are subject to change at any time based on market or other conditions, and MFS disclaims any responsibility to update such views. These views may not be relied upon as investment advice or an indication of trading intent on behalf of any MFS portfolio. References to specific securities are not recommendations of such securities, and may not be representative of any MFS portfolio’s current or future investments.
11
Table of Contents
PERFORMANCE SUMMARY THROUGH 3/31/14
The following charts illustrate a representative class of each fund’s historical performance in comparison to its benchmark(s). Performance results include the deduction of the maximum applicable sales charge and reflect the percentage change in net asset value, including reinvestment of dividends and capital gains distributions. Each fund’s results have been compared to the Barclays Municipal Bond Index, a market capitalization-weighted index that measures the performance of the tax-exempt bond market. However, while this index is considered the benchmark for the performance of municipal bond funds, it is comprised of municipal bonds issued nationwide, while each of the funds is limited to investing primarily in the bonds of a particular state. The performance of other share classes will be greater than or less than that of the class depicted below. Benchmarks are unmanaged and may not be invested in directly. Benchmark returns do not reflect sales charges, commissions or expenses. (See Notes to Performance Summary.)
Performance data shown represents past performance and is no guarantee of future results. Investment return and principal value fluctuate so your shares, when sold, may be worth more or less than the original cost; current performance may be lower or higher than quoted. The performance shown does not reflect the deduction of taxes, if any, that a shareholder would pay on fund distributions or the redemption of fund shares.
MFS Mississippi Municipal Bond Fund
Growth of a hypothetical $10,000 investment
Total returns through 3/31/14
Average annual without sales charge
Share Class | Class inception date | 1-yr | 5-yr | 10-yr | ||||||||
A | 8/06/92 | (1.82)% | 4.97% | 4.00% | ||||||||
B | 9/07/93 | (2.50)% | 4.22% | 3.24% | ||||||||
Comparative benchmark | ||||||||||||
Barclays Municipal Bond Index (f) | 0.39% | 5.71% | 4.45% | |||||||||
Average annual with sales charge | ||||||||||||
A With Initial Sales Charge (4.75%) | (6.48)% | 3.95% | 3.50% | |||||||||
B With CDSC (Declining over six years from 4% to 0%) (v) | (6.26)% | 3.88% | 3.24% |
CDSC – Contingent Deferred Sales Charge.
(f) | Source: FactSet Research Systems Inc. |
(v) | Assuming redemption at the end of the applicable period. |
12
Table of Contents
Performance Summary – continued
MFS New York Municipal Bond Fund
Growth of a hypothetical $10,000 investment
Total returns through 3/31/14
Average annual without sales charge
Share Class | Class inception date | 1-yr | 5-yr | 10-yr | ||||||||
A | 6/06/88 | (3.04)% | 5.03% | 3.72% | ||||||||
B | 9/07/93 | (3.77)% | 4.27% | 2.96% | ||||||||
C | 12/11/00 | (3.77)% | 4.24% | 2.95% | ||||||||
Comparative benchmark | ||||||||||||
Barclays Municipal Bond Index (f) | 0.39% | 5.71% | 4.45% | |||||||||
Average annual with sales charge | ||||||||||||
A With Initial Sales Charge (4.75%) | (7.64)% | 4.02% | 3.22% | |||||||||
B With CDSC (Declining over six years from 4% to 0%) (v) | (7.51)% | 3.92% | 2.96% | |||||||||
C With CDSC (1% for 12 months) (v) | (4.71)% | 4.24% | 2.95% |
CDSC – Contingent Deferred Sales Charge.
(f) | Source: FactSet Research Systems Inc. |
(v) | Assuming redemption at the end of the applicable period. |
13
Table of Contents
Performance Summary – continued
MFS North Carolina Municipal Bond Fund
Growth of a hypothetical $10,000 investment
Total returns through 3/31/14
Average annual without sales charge
Share Class | Class inception date | 1-yr | 5-yr | 10-yr | ||||||||
A | 10/31/84 | (2.66)% | 4.81% | 3.72% | ||||||||
B | 9/07/93 | (3.47)% | 4.01% | 2.99% | ||||||||
C | 1/03/94 | (3.39)% | 4.01% | 3.00% | ||||||||
Comparative benchmark | ||||||||||||
Barclays Municipal Bond Index (f) | 0.39% | 5.71% | 4.45% | |||||||||
Average annual with sales charge | ||||||||||||
A With Initial Sales Charge (4.75%) | (7.28)% | 3.79% | 3.22% | |||||||||
B With CDSC (Declining over six years from 4% to 0%) (v) | (7.21)% | 3.67% | 2.99% | |||||||||
C With CDSC (1% for 12 months) (v) | (4.32)% | 4.01% | 3.00% |
CDSC – Contingent Deferred Sales Charge.
(f) | Source: FactSet Research Systems Inc. |
(v) | Assuming redemption at the end of the applicable period. |
14
Table of Contents
Performance Summary – continued
MFS Pennsylvania Municipal Bond Fund
Growth of a hypothetical $10,000 investment
Total returns through 3/31/14
Average annual without sales charge
Share Class | Class inception date | 1-yr | 5-yr | 10-yr | ||||||||
A | 2/01/93 | (2.52)% | 5.33% | 3.88% | ||||||||
B | 9/07/93 | (3.16)% | 4.51% | 3.09% | ||||||||
Comparative benchmark | ||||||||||||
Barclays Municipal Bond Index (f) | 0.39% | 5.71% | 4.45% | |||||||||
Average annual with sales charge | ||||||||||||
A With Initial Sales Charge (4.75%) | (7.15)% | 4.31% | 3.38% | |||||||||
B With CDSC (Declining over six years from 4% to 0%) (v) | (6.92)% | 4.18% | 3.09% |
CDSC – Contingent Deferred Sales Charge.
(f) | Source: FactSet Research Systems Inc. |
(v) | Assuming redemption at the end of the applicable period. |
15
Table of Contents
Performance Summary – continued
MFS South Carolina Municipal Bond Fund
Growth of a hypothetical $10,000 investment
Total returns through 3/31/14
Average annual without sales charge
Share Class | Class inception date | 1-yr | 5-yr | 10-yr | ||||||||
A | 10/31/84 | (3.31)% | 4.65% | 3.43% | ||||||||
B | 9/07/93 | (4.11)% | 3.86% | 2.71% | ||||||||
Comparative benchmark | ||||||||||||
Barclays Municipal Bond Index (f) | 0.39% | 5.71% | 4.45% | |||||||||
Average annual with sales charge | ||||||||||||
A With Initial Sales Charge (4.75%) | (7.90)% | 3.64% | 2.93% | |||||||||
B With CDSC (Declining over six years from 4% to 0%) (v) | (7.84)% | 3.51% | 2.71% |
CDSC – Contingent Deferred Sales Charge.
(f) | Source: FactSet Research Systems Inc. |
(v) | Assuming redemption at the end of the applicable period. |
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Performance Summary – continued
MFS Tennessee Municipal Bond Fund
Growth of a hypothetical $10,000 investment
Total returns through 3/31/14
Average annual without sales charge
Share Class | Class inception date | 1-yr | 5-yr | 10-yr | ||||||||
A | 8/12/88 | (3.15)% | 4.79% | 3.62% | ||||||||
B | 9/07/93 | (3.88)% | 4.02% | 2.90% | ||||||||
Comparative benchmark | ||||||||||||
Barclays Municipal Bond Index (f) | 0.39% | 5.71% | 4.45% | |||||||||
Average annual with sales charge | ||||||||||||
A With Initial Sales Charge (4.75%) | (7.75)% | 3.78% | 3.11% | |||||||||
B With CDSC (Declining over six years from 4% to 0%) (v) | (7.62)% | 3.67% | 2.90% |
CDSC – Contingent Deferred Sales Charge.
(f) | Source: FactSet Research Systems Inc. |
(v) | Assuming redemption at the end of the applicable period. |
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Performance Summary – continued
MFS Virginia Municipal Bond Fund
Growth of a hypothetical $10,000 investment
Total returns through 3/31/14
Average annual without sales charge
Share Class | Class inception date | 1-yr | 5-yr | 10-yr | ||||||||
A | 10/31/84 | (2.02)% | 4.93% | 3.71% | ||||||||
B | 9/07/93 | (2.67)% | 4.17% | 3.00% | ||||||||
C | 1/03/94 | (2.67)% | 4.14% | 2.99% | ||||||||
Comparative benchmark | ||||||||||||
Barclays Municipal Bond Index (f) | 0.39% | 5.71% | 4.45% | |||||||||
Average annual with sales charge | ||||||||||||
A With Initial Sales Charge (4.75%) | (6.68)% | 3.91% | 3.21% | |||||||||
B With CDSC (Declining over six years from 4% to 0%) (v) | (6.45)% | 3.83% | 3.00% | |||||||||
C With CDSC (1% for 12 months) (v) | (3.62)% | 4.14% | 2.99% |
CDSC – Contingent Deferred Sales Charge.
(f) | Source: FactSet Research Systems Inc. |
(v) | Assuming redemption at the end of the applicable period. |
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Performance Summary – continued
MFS West Virginia Municipal Bond Fund
Growth of a hypothetical $10,000 investment
Total returns through 3/31/14
Average annual without sales charge
Share Class | Class inception date | 1-yr | 5-yr | 10-yr | ||||||||
A | 10/31/84 | (2.54)% | 4.79% | 3.33% | ||||||||
B | 9/07/93 | (3.18)% | 4.02% | 2.61% | ||||||||
Comparative benchmark | ||||||||||||
Barclays Municipal Bond Index (f) | 0.39% | 5.71% | 4.45% | |||||||||
Average annual with sales charge | ||||||||||||
A With Initial Sales Charge (4.75%) | (7.17)% | 3.78% | 2.83% | |||||||||
B With CDSC (Declining over six years from 4% to 0%) (v) | (6.95)% | 3.67% | 2.61% |
CDSC – Contingent Deferred Sales Charge.
(f) | Source: FactSet Research Systems Inc. |
(v) | Assuming redemption at the end of the applicable period. |
Benchmark Definition
Barclays Municipal Bond Index – a market capitalization-weighted index that measures the performance of the tax-exempt bond market.
It is not possible to invest directly in an index.
Notes to Performance Summary
Average annual total return represents the average annual change in value for each share class for the periods presented.
Performance results reflect any applicable expense subsidies and waivers in effect during the periods shown. Without such subsidies and waivers each fund’s performance results would be less favorable. Please see the prospectus and financial statements for complete details.
Performance results do not include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles and may differ from amounts reported in the financial highlights.
A portion of income may be subject to state, federal, and/or alternative minimum tax. Capital gains, if any, are subject to a capital gains tax.
From time to time the funds may receive proceeds from litigation settlements, without which performance would be lower.
19
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Fund expenses borne by the shareholders during the period, October 1, 2013 through March 31, 2014
As a shareholder of the funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on certain purchase or redemption payments, and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the funds and to compare these costs with the ongoing costs of investing in other mutual funds.
These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period October 1, 2013 through March 31, 2014.
Actual expenses
The first line for each share class in the following tables provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The second line for each share class in the following tables provides information about hypothetical account values and hypothetical expenses based on each fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in each fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line for each share class in the tables is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
MFS MISSISSIPPI MUNICIPAL BOND FUND
Share Class | Annualized Ratio | Beginning Account Value 10/01/13 | Ending Account Value | Expenses Paid During Period (p) 10/01/13-3/31/14 | ||||||||||||||
A | Actual | 0.81% | $1,000.00 | $1,033.54 | $4.11 | |||||||||||||
Hypothetical (h) | 0.81% | $1,000.00 | $1,020.89 | $4.08 | ||||||||||||||
B | Actual | 1.49% | $1,000.00 | $1,028.94 | $7.54 | |||||||||||||
Hypothetical (h) | 1.49% | $1,000.00 | $1,017.50 | $7.49 |
MFS NEW YORK MUNICIPAL BOND FUND
Share Class | Annualized Ratio | Beginning Account Value 10/01/13 | Ending Account Value | Expenses Paid During 10/01/13-3/31/14 | ||||||||||||||
A | Actual | 0.88% | $1,000.00 | $1,036.88 | $4.47 | |||||||||||||
Hypothetical (h) | 0.88% | $1,000.00 | $1,020.54 | $4.43 | ||||||||||||||
B | Actual | 1.64% | $1,000.00 | $1,033.11 | $8.31 | |||||||||||||
Hypothetical (h) | 1.64% | $1,000.00 | $1,016.75 | $8.25 | ||||||||||||||
C | Actual | 1.64% | $1,000.00 | $1,032.10 | $8.31 | |||||||||||||
Hypothetical (h) | 1.64% | $1,000.00 | $1,016.75 | $8.25 |
(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 182/365 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
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Expense Tables – continued
MFS NORTH CAROLINA MUNICIPAL BOND FUND
Share Class | Annualized Ratio | Beginning Account Value 10/01/13 | Ending Account Value | Expenses Paid During 10/01/13-3/31/14 | ||||||||||||||
A | Actual | 0.87% | $1,000.00 | $1,034.58 | $4.41 | |||||||||||||
Hypothetical (h) | 0.87% | $1,000.00 | $1,020.59 | $4.38 | ||||||||||||||
B | Actual | 1.63% | $1,000.00 | $1,029.89 | $8.25 | |||||||||||||
Hypothetical (h) | 1.63% | $1,000.00 | $1,016.80 | $8.20 | ||||||||||||||
C | Actual | 1.63% | $1,000.00 | $1,029.86 | $8.25 | |||||||||||||
Hypothetical (h) | 1.63% | $1,000.00 | $1,016.80 | $8.20 |
MFS PENNSYLVANIA MUNICIPAL BOND FUND
Share Class | Annualized Ratio | Beginning Account Value 10/01/13 | Ending Account Value | Expenses Paid During 10/01/13-3/31/14 | ||||||||||||||
A | Actual | 0.80% | $1,000.00 | $1,036.88 | $4.06 | |||||||||||||
Hypothetical (h) | 0.80% | $1,000.00 | $1,020.94 | $4.03 | ||||||||||||||
B | Actual | 1.55% | $1,000.00 | $1,032.90 | $7.86 | |||||||||||||
Hypothetical (h) | 1.55% | $1,000.00 | $1,017.20 | $7.80 |
MFS SOUTH CAROLINA MUNICIPAL BOND FUND
Share Class | Annualized Ratio | Beginning Account Value 10/01/13 | Ending Account Value | Expenses Paid During Period (p) 10/01/13-3/31/14 | ||||||||||||||
A | Actual | 0.90% | $1,000.00 | $1,030.80 | $4.56 | |||||||||||||
Hypothetical (h) | 0.90% | $1,000.00 | $1,020.44 | $4.53 | ||||||||||||||
B | Actual | 1.66% | $1,000.00 | $1,027.00 | $8.39 | |||||||||||||
Hypothetical (h) | 1.66% | $1,000.00 | $1,016.65 | $8.35 |
MFS TENNESSEE MUNICIPAL BOND FUND
Share Class | Annualized Ratio | Beginning Account Value 10/01/13 | Ending Account Value | Expenses Paid During Period (p) 10/01/13-3/31/14 | ||||||||||||||
A | Actual | 0.97% | $1,000.00 | $1,029.28 | $4.91 | |||||||||||||
Hypothetical (h) | 0.97% | $1,000.00 | $1,020.09 | $4.89 | ||||||||||||||
B | Actual | 1.72% | $1,000.00 | $1,025.48 | $8.69 | |||||||||||||
Hypothetical (h) | 1.72% | $1,000.00 | $1,016.36 | $8.65 |
(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 182/365 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
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Expense Tables – continued
MFS VIRGINIA MUNICIPAL BOND FUND
Share Class | Annualized Ratio | Beginning Account Value 10/01/13 | Ending Account Value | Expenses Paid During Period (p) 10/01/13-3/31/14 | ||||||||||||||
A | Actual | 0.89% | $1,000.00 | $1,036.07 | $4.52 | |||||||||||||
Hypothetical (h) | 0.89% | $1,000.00 | $1,020.49 | $4.48 | ||||||||||||||
B | Actual | 1.64% | $1,000.00 | $1,033.19 | $8.31 | |||||||||||||
Hypothetical (h) | 1.64% | $1,000.00 | $1,016.75 | $8.25 | ||||||||||||||
C | Actual | 1.64% | $1,000.00 | $1,032.24 | $8.31 | |||||||||||||
Hypothetical (h) | 1.64% | $1,000.00 | $1,016.75 | $8.25 |
Notes to Expense Table
For the MFS Virginia Municipal Bond Fund, expense ratios include 0.01% of investment related expenses from inverse floaters that are outside of the expense limitation arrangement (See Note 3 of the Notes to Financial Statements).
MFS WEST VIRGINIA MUNICIPAL BOND FUND
Share Class | Annualized Ratio | Beginning Account Value 10/01/13 | Ending Account Value | Expenses Paid During Period (p) 10/01/13-3/31/14 | ||||||||||||||
A | Actual | 0.90% | $1,000.00 | $1,034.96 | $4.57 | |||||||||||||
Hypothetical (h) | 0.90% | $1,000.00 | $1,020.44 | $4.53 | ||||||||||||||
B | Actual | 1.65% | $1,000.00 | $1,031.13 | $8.36 | |||||||||||||
Hypothetical (h) | 1.65% | $1,000.00 | $1,016.70 | $8.30 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
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3/31/14
MFS MISSISSIPPI MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
Municipal Bonds - 97.7% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 2.0% | ||||||||
Chicago, IL, O’Hare International Airport Rev. General Airport Sr. Lien Rev., “A”, 5%, 1/01/22 | $ | 650,000 | $ | 734,414 | ||||
Jackson, MS, Municipal Airport Authority, Airport Rev., “A”, AMBAC, 5%, 10/01/31 | 1,000,000 | 1,030,200 | ||||||
$ | 1,764,614 | |||||||
General Obligations - General Purpose - 8.1% | ||||||||
Canton, MS, Mississippi Development Bank Special Obligation, “A”, AGM, 5.75%, 10/01/31 | $ | 625,000 | $ | 692,663 | ||||
Guam Government, “A”, 6.75%, 11/15/29 | 35,000 | 37,070 | ||||||
Guam Government, “A”, 5.25%, 11/15/37 | 155,000 | 140,773 | ||||||
Guam Government, “A”, 7%, 11/15/39 | 40,000 | 42,368 | ||||||
Jackson County, MS, Development Bank Special Obligations, AGM, 5.25%, 3/01/20 | 620,000 | 724,644 | ||||||
Jackson County, MS, Development Bank Special Obligations, ASSD GTY, 5.625%, 7/01/39 | 1,000,000 | 1,063,960 | ||||||
Memphis, TN, Refunding General Improvement, “B”, 5%, 4/01/31 | 110,000 | 123,913 | ||||||
Mississippi Development Bank Special Obligation (Greenville, MS Project), 5%, 4/01/27 | 195,000 | 196,074 | ||||||
Nassau County, NY, General Improvement, “B”, 5%, 4/01/24 | 600,000 | 677,826 | ||||||
State of California, 6%, 11/01/39 | 700,000 | 820,043 | ||||||
State of Mississippi, “A”, 5.25%, 11/01/15 | 800,000 | 862,816 | ||||||
State of Mississippi, “F”, 4%, 11/01/22 | 500,000 | 557,165 | ||||||
State of Mississippi, Capital Improvement Projects, “A”, 5%, 10/01/30 | 1,000,000 | 1,119,100 | ||||||
$ | 7,058,415 | |||||||
General Obligations - Schools - 2.6% | ||||||||
Mississippi Development Bank Special Obligation (Jackson Public School District Limited Tax Refunding Note Project) “B”, 5%, 10/01/23 | $ | 1,000,000 | $ | 1,134,110 | ||||
Mississippi Development Bank Special Obligation (Jackson Public School District), AGM, 5.375%, 4/01/28 | 1,000,000 | 1,110,250 | ||||||
$ | 2,244,360 | |||||||
Healthcare Revenue - Hospitals - 17.0% | ||||||||
Brazoria County, TX, Health Facilities Development Corp., Hospital Rev. (Brazosport Regional Health System), 5.25%, 7/01/32 | $ | 270,000 | $ | 251,667 | ||||
Gulfport, MS, Hospital Facilities Rev. (Memorial Hospital), NATL, 6.125%, 7/01/15 | 980,000 | 984,351 | ||||||
Gulfport, MS, Hospital Facilities Rev. (Memorial Hospital), NATL, 6.2%, 7/01/18 | 1,000,000 | 1,004,120 | ||||||
Gulfport, MS, Hospital Facilities Rev. (Memorial Hospital), 5.75%, 7/01/31 | 500,000 | 501,055 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 7%, 8/15/44 | $ | 325,000 | $ | 355,878 | ||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6.375%, 6/01/40 | 380,000 | 406,760 | ||||||
Louisville & Jefferson County, KY, Metropolitan Government Healthcare Systems Rev. (Norton Healthcare, Inc.), 5.25%, 10/01/36 | 320,000 | 323,197 | ||||||
Miami-Dade County, FL, Health Facilities Authority Hospital Rev. (Variety Children’s Hospital), “A”, 6%, 8/01/30 | 80,000 | 89,146 | ||||||
Mississippi Development Bank Special Obligation (Magnolia Regional Health Center Project), “A”, 6.75%, 10/01/36 | 500,000 | 560,430 | ||||||
Mississippi Hospital Equipment & Facilities Authority Rev. (Baptist Memorial Healthcare), “B-1”, 5%, 9/01/24 | 2,000,000 | 2,033,300 | ||||||
Mississippi Hospital Equipment & Facilities Authority Rev. (Clay County Medical Corp.), 5%, 10/01/39 | 2,000,000 | 2,063,720 | ||||||
Mississippi Hospital Equipment & Facilities Authority Rev. (Delta Regional Medical Center), FHA, 5%, 2/01/35 | 1,000,000 | 1,010,430 | ||||||
Mississippi Hospital Equipment & Facilities Authority Rev. (Forrest County General Hospital), 5.25%, 1/01/29 | 1,000,000 | 1,079,490 | ||||||
Mississippi Hospital Equipment & Facilities Authority Rev. (North Mississippi Health Services), “1”, 5%, 10/01/17 | 750,000 | 848,348 | ||||||
Mississippi Hospital Equipment & Facilities Authority Rev., Refunding & Improvement, Hospital South Central, 5.25%, 12/01/31 | 500,000 | 502,670 | ||||||
Mississippi Hospital Equipment & Facilities Authority Rev., Refunding & Improvement, Southwest Regional Medical Center, 5.5%, 4/01/19 | 250,000 | 250,300 | ||||||
Mississippi Hospital Equipment & Facilities Authority Rev., Refunding & Improvement, Southwest Regional Medical Center, 5.75%, 4/01/23 | 250,000 | 250,078 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6%, 10/01/27 | 215,000 | 230,977 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6.125%, 10/01/39 | 550,000 | 575,916 | ||||||
St. Petersburg, FL, Health Facilities Authority Rev., 6.5%, 11/15/39 | 135,000 | 152,399 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 6.75%, 7/01/29 | 75,000 | 83,912 |
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Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 7%, 7/01/39 | $ | 185,000 | $ | 203,565 | ||||
Wisconsin Health & Educational Facilities Authority Rev. (ProHealth Care, Inc. Obligated Group), 6.625%, 2/15/39 | 640,000 | 710,304 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (Wheaton Franciscan Healthcare), 5.25%, 8/15/31 | 430,000 | 439,563 | ||||||
$ | 14,911,576 | |||||||
Industrial Revenue - Paper - 1.9% | ||||||||
Lowndes County, MS, Solid Waste Disposal & Pollution Control Rev. (Weyerhaeuser Co.), 6.8%, 4/01/22 | $ | 750,000 | $ | 868,020 | ||||
Warren County, MS, Environmental Improvement Rev. (International Paper Co.), “A”, 4.4%, 3/01/15 | 750,000 | 764,790 | ||||||
$ | 1,632,810 | |||||||
Miscellaneous Revenue - Other - 1.0% | ||||||||
New York Liberty Development Corp. Liberty Rev., (7 World Trade Center Project), 5%, 9/15/40 | $ | 785,000 | $ | 840,751 | ||||
Multi-Family Housing Revenue - 1.2% | ||||||||
Mississippi Home Corp. Rev. (Kirkwood Apartments Project), 6.8%, 11/01/37 | $ | 150,000 | $ | 93,051 | ||||
Mississippi Home Corp., Multifamily Rev. (Providence Place of Senatobia LLC), GNMA, 5.35%, 8/20/48 | 1,000,000 | 989,070 | ||||||
$ | 1,082,121 | |||||||
Sales & Excise Tax Revenue - 2.9% | ||||||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6%, 1/15/41 | $ | 450,000 | $ | 473,225 | ||||
Guam Government Business Privilege Tax Rev., “A”, 5.25%, 1/01/36 | 295,000 | 305,408 | ||||||
Massachusetts Bay Transportation Authority, Sales Tax Rev., “A-1”, 5.25%, 7/01/29 | 750,000 | 912,960 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., 5.25%, 8/01/57 | 720,000 | 579,794 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “C”, 5%, 8/01/40 | 325,000 | 266,351 | ||||||
$ | 2,537,738 | |||||||
Single Family Housing - State - 3.3% | ||||||||
Mississippi Home Corp. Rev., Single Family Rev., “A-2”, GNMA, 5.3%, 6/01/34 | $ | 150,000 | $ | 156,074 | ||||
Mississippi Home Corp. Rev., Single Family Rev., “A-2”, GNMA, 5.625%, 6/01/39 | 130,000 | 134,306 | ||||||
Mississippi Home Corp., Homeownership Mortgage Rev., “A”, 4.55%, 12/01/31 | 1,555,000 | 1,605,506 | ||||||
Mississippi Housing Finance Corp., Single Family Mortgage Rev., Capital Appreciation, ETM, 0%, 6/01/15 (c) | 1,000,000 | 996,530 | ||||||
$ | 2,892,416 |
Issuer | Shares/Par | Value ($) | ||||||
State & Agency - Other - 1.2% | ||||||||
Mississippi Development Bank Special Obligations, Harrison County Mississippi Highway Construction, “N”, FGIC, 5%, 1/01/16 (c) | $ | 1,000,000 | $ | 1,079,880 | ||||
State & Local Agencies - 23.6% | ||||||||
Los Angeles, CA, Municipal Improvement Corp. Lease Rev. (Real Property), “E”, 6%, 9/01/39 | $ | 190,000 | $ | 214,523 | ||||
Mississippi Development Bank Special Obligation (Laurel, MS, Highway Refunding Project), “B”, 4%, 1/01/22 | 1,485,000 | 1,627,753 | ||||||
Mississippi Development Bank Special Obligation (Capital Project & Equipment Prepayment), AGM, 5%, 7/01/28 | 1,320,000 | 1,434,220 | ||||||
Mississippi Development Bank Special Obligation (City of Jackson, MS), AMBAC, 4.375%, 3/01/16 (c) | 1,400,000 | 1,505,840 | ||||||
Mississippi Development Bank Special Obligation (Department of Corrections), “C”, 5.25%, 8/01/27 | 1,000,000 | 1,111,700 | ||||||
Mississippi Development Bank Special Obligation (Department of Rehabilitation Services Capital Improvement Project), AGM, 5%, 7/01/23 | 345,000 | 390,813 | ||||||
Mississippi Development Bank Special Obligation (Department of Rehabilitation Services Capital Improvement Project), AGM, 5%, 7/01/24 | 360,000 | 406,552 | ||||||
Mississippi Development Bank Special Obligation (Department of Rehabilitation Services Capital Improvement Project), AGM, 5%, 7/01/25 | 380,000 | 427,557 | ||||||
Mississippi Development Bank Special Obligation (DeSoto County Regional Utility Authority), 5.25%, 7/01/31 | 905,000 | 964,268 | ||||||
Mississippi Development Bank Special Obligation (Forrest County Public Improvement Project), 5%, 2/01/29 | 1,000,000 | 1,054,350 | ||||||
Mississippi Development Bank Special Obligation (Harrison County Coliseum), “A”, 5.25%, 1/01/34 | 1,000,000 | 1,182,760 | ||||||
Mississippi Development Bank Special Obligation (Harrison County), “D”, ASSD GTY, 4.75%, 10/01/28 | 1,120,000 | 1,205,075 | ||||||
Mississippi Development Bank Special Obligation (Jackson County), ASSD GTY, 5%, 7/01/22 | 500,000 | 557,420 | ||||||
Mississippi Development Bank Special Obligation (Jackson County), ASSD GTY, 5.375%, 7/01/36 | 500,000 | 536,015 | ||||||
Mississippi Development Bank Special Obligation (Marshall County Industrial Development Authority Mississippi Highway Construction Project), 5%, 1/01/18 | 1,375,000 | 1,564,654 |
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Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
State & Local Agencies - continued | ||||||||
Mississippi Development Bank Special Obligation (Marshall County Industrial Development Authority Mississippi Highway Construction Project), 5%, 1/01/21 | $ | 500,000 | $ | 582,520 | ||||
Mississippi Development Bank Special Obligation (Mississippi Highway Construction), AMBAC, 4.75%, 1/01/35 | 500,000 | 517,820 | ||||||
Mississippi Development Bank Special Obligation (Montfort Jones Memorial Hospital Project), 5.75%, 5/01/36 | 500,000 | 527,890 | ||||||
Mississippi Development Bank Special Obligation (Southaven Water & Sewer System), ASSD GTY, 5%, 3/01/29 | 750,000 | 809,115 | ||||||
Mississippi Development Bank Special Obligation (Tunica County Building Project), AMBAC, 5%, 7/01/16 (c) | 1,695,000 | 1,865,415 | ||||||
Mississippi Development Bank Special Obligation (Washington County Regional Correctional Facility), ASSD GTY, 4.75%, 7/01/31 | 1,200,000 | 1,283,184 | ||||||
Mississippi Development Bank Special Obligation, Madison County (Highway Construction), FGIC, 5%, 7/01/16 (c) | 500,000 | 550,860 | ||||||
New York Tobacco Settlement Financing Corp., Asset-Backed Rev., “B”, 5%, 6/01/21 | 260,000 | 280,779 | ||||||
$ | 20,601,083 | |||||||
Tax - Other - 2.0% | ||||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/24 | $ | 125,000 | $ | 132,066 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/29 | 40,000 | 41,858 | ||||||
Virgin Islands Public Finance Authority Rev. (Diageo Project), “A”, 6.75%, 10/01/37 | 110,000 | 119,644 | ||||||
Virgin Islands Public Finance Authority Rev., “A”, 5.25%, 10/01/24 | 135,000 | 138,416 | ||||||
Virgin Islands Public Finance Authority Rev., “A-1”, 5%, 10/01/29 | 790,000 | 809,426 | ||||||
Virgin Islands Public Finance Authority Rev., “A-1”, 5%, 10/01/39 | 95,000 | 94,592 | ||||||
Virgin Islands Public Finance Authority Rev., “B”, 5%, 10/01/25 | 85,000 | 89,627 | ||||||
Virgin Islands Public Finance Authority Rev., Matching Fund Loan Note, “A”, 6%, 10/01/39 | 295,000 | 297,050 | ||||||
$ | 1,722,679 | |||||||
Tobacco - 1.7% | ||||||||
Illinois Railsplitter Tobacco Settlement Authority, 6%, 6/01/28 | $ | 420,000 | $ | 473,504 | ||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.75%, 6/01/34 | 155,000 | 117,064 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 5%, 6/01/41 | 780,000 | 586,903 | ||||||
New Jersey Tobacco Settlement Financing Corp., Capital Appreciation, “1-B”, 0%, 6/01/41 | 1,210,000 | 291,683 | ||||||
New Jersey Tobacco Settlement Financing Corp., Capital Appreciation, “1-C”, 0%, 6/01/41 | 15,000 | 3,560 | ||||||
$ | 1,472,714 |
Issuer | Shares/Par | Value ($) | ||||||
Toll Roads - 1.1% | ||||||||
Texas Private Activity Surface Transportation Corp. Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 7%, 12/31/38 | $ | 110,000 | $ | 124,758 | ||||
Texas Private Activity Surface Transportation Corp. Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 6.75%, 6/30/43 | 85,000 | 94,168 | ||||||
Triborough Bridge & Tunnel Authority Rev., NY, Capital Appreciation, “A”, 0%, 11/15/29 | 475,000 | 244,312 | ||||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 6%, 1/01/37 | 195,000 | 207,484 | ||||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 5.5%, 1/01/42 | 310,000 | 316,560 | ||||||
$ | 987,282 | |||||||
Transportation - Special Tax - 1.2% | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., AGM, 5.25%, 7/01/33 | $ | 1,135,000 | $ | 1,079,487 | ||||
Universities - Colleges - 13.5% | ||||||||
Alcorn State University, MS, Educational Building Corp. Rev. (Student Housing Project), “A”, 5.125%, 9/01/34 | $ | 1,000,000 | $ | 1,070,280 | ||||
Alcorn State University, MS, Educational Building Corp. Rev. (Student Housing Project), “A”, 5.25%, 9/01/39 | 920,000 | 980,950 | ||||||
Jackson State University, Educational Building Corp. Rev., “A-1”, 5%, 3/01/34 | 1,500,000 | 1,583,070 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Massachusetts Institute of Technology), “I-1”, 5.2%, 1/01/28 | 920,000 | 1,144,195 | ||||||
Medical Center, Educational Building Corp. Rev. (University of Mississippi Medical Center), “B”, AMBAC, 5.5%, 12/01/23 | 1,000,000 | 1,144,210 | ||||||
Mississippi Business Finance Corp., Rev. (Statesman Housing LLC Project), “A”, 4.75%, 6/01/39 | 1,000,000 | 1,009,050 | ||||||
Mississippi Valley State University, Educational Building Corp. Rev., AMBAC, 4.5%, 3/01/37 | 1,000,000 | 1,003,750 | ||||||
University of Mississippi, Educational Building Corp. Rev. (Residential College Project), “A”, 5%, 10/01/33 | 1,500,000 | 1,610,235 | ||||||
University of Mississippi, Educational Building Corp. Rev. (Residential College Project), “C”, 4.75%, 11/01/34 | 715,000 | 745,909 | ||||||
University of Southern Mississippi, COP (Package Facilities Project), ASSD GTY, 5.125%, 9/15/39 | 490,000 | 508,478 | ||||||
University of Southern Mississippi, Educational Building Corp. Rev., “B”, AGM, 5%, 3/01/32 | 1,000,000 | 1,041,400 | ||||||
$ | 11,841,527 |
25
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Universities - Dormitories - 2.5% | ||||||||
Mississippi State University, Educational Building Corp. Rev., 5%, 8/01/36 | $ | 1,000,000 | $ | 1,063,570 | ||||
Mississippi State University, Educational Building Corp. Rev., 5.25%, 8/01/38 | 1,000,000 | 1,094,830 | ||||||
$ | 2,158,400 | |||||||
Utilities - Investor Owned - 0.8% | ||||||||
Michigan Strategic Fund Ltd. Obligation Rev. (Detroit Edison Co.), 5.625%, 7/01/20 | $ | 370,000 | $ | 438,565 | ||||
Michigan Strategic Fund Ltd. Obligation Rev. (Detroit Edison Co.), 5.5%, 8/01/29 (b) | 265,000 | 290,755 | ||||||
$ | 729,320 | |||||||
Utilities - Municipal Owned - 2.3% | ||||||||
Long Island, NY, Power Authority, Electric Systems Rev., “A”, 6%, 5/01/33 | $ | 155,000 | $ | 174,955 | ||||
Mississippi Development Bank Special Obligation (Columbus Electric Systems Project), ASSD GTY, 4.7%, 7/01/27 | 155,000 | 166,989 | ||||||
Mississippi Development Bank Special Obligation (Columbus Electric Systems Project), ASSD GTY, 4.75%, 7/01/28 | 100,000 | 107,524 | ||||||
Mississippi Development Bank Special Obligation (Columbus Electric Systems Project), ASSD GTY, 4.85%, 7/01/29 | 485,000 | 521,875 | ||||||
Mississippi Development Bank Special Obligation (Municipal Energy Agency Power Supply Project), “A”, SYNCORA, 5%, 3/01/26 | 1,000,000 | 1,019,110 | ||||||
$ | 1,990,453 | |||||||
Utilities - Other - 0.8% | ||||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/19 | $ | 375,000 | $ | 421,425 | ||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/21 | 185,000 | 206,479 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/22 | 95,000 | 106,140 | ||||||
$ | 734,044 |
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - 7.0% | ||||||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 6%, 7/01/44 | $ | 565,000 | $ | 417,366 | ||||
Grenada, MS, Development Bank Special Obligations (Water & Sewer Systems Project), “N”, AGM, 5%, 9/15/15 (c) | 1,000,000 | 1,069,460 | ||||||
Guam Government Waterworks Authority, Water & Wastewater System Rev., 5.625%, 7/01/40 | 285,000 | 295,200 | ||||||
Mississippi Development Bank Special Obligation (City of Jackson Water and Sewer System Rev. Bond Project), AGM, 6.875%, 12/01/40 | 750,000 | 942,600 | ||||||
Mississippi Development Bank Special Obligations (Jackson Water & Sewer System Project), AGM, 5%, 9/01/14 (c) | 2,000,000 | 2,039,840 | ||||||
Mississippi Development Bank Special Obligations (Jackson Water & Sewer System Project), “A”, AGM, 5%, 9/01/23 | 1,220,000 | 1,356,176 | ||||||
$ | 6,120,642 | |||||||
Total Municipal Bonds (Identified Cost, $81,658,920) |
| $ | 85,482,312 | |||||
Money Market Funds - 1.4% | ||||||||
MFS Institutional Money Market Portfolio, 0.09%, at Cost and Net Asset Value (v) | 1,231,523 | $ | 1,231,523 | |||||
Total Investments (Identified Cost, $82,890,443) | $ | 86,713,835 | ||||||
Other Assets, Less Liabilities - 0.9% | 749,587 | |||||||
Net Assets - 100.0% | $ | 87,463,422 |
See Portfolio Footnotes and Notes to Financial Statements
26
Table of Contents
PORTFOLIO OF INVESTMENTS
3/31/14
MFS NEW YORK MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
Municipal Bonds - 97.0% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 2.1% | ||||||||
Chicago, IL, O’Hare International Airport Rev., Third Lien, “A”, 5.625%, 1/01/35 | $ | 555,000 | $ | 607,128 | ||||
New York, NY, City Industrial Development Agency, Special Facilities Rev. (Terminal One Group), 5.5%, 1/01/24 | 1,000,000 | 1,059,500 | ||||||
Port Authority of NY & NJ, Special Obligation Rev. (JFK International Air Terminal LLC), NATL, 6.25%, 12/01/15 | 1,000,000 | 1,050,230 | ||||||
Port Authority of NY & NJ, Special Obligation Rev. (JFK International Air Terminal LLC), 6%, 12/01/42 | 1,160,000 | 1,266,778 | ||||||
$ | 3,983,636 | |||||||
General Obligations - General Purpose - 6.6% | ||||||||
Guam Government, “A”, 5.25%, 11/15/37 | $ | 290,000 | $ | 263,381 | ||||
Guam Government, “A”, 7%, 11/15/39 | 105,000 | 111,215 | ||||||
Memphis, TN, Refunding General Improvement, “B”, 5%, 4/01/31 | 230,000 | 259,090 | ||||||
Nassau County, NY, General Improvement, “B”, 5%, 4/01/23 | 1,820,000 | 2,086,539 | ||||||
New York, NY, “B”, 5%, 8/01/18 | 3,000,000 | 3,465,600 | ||||||
New York, NY, “E”, 5%, 8/01/21 | 2,500,000 | 2,925,150 | ||||||
New York, NY, “E-1”, 6.25%, 10/15/28 | 1,000,000 | 1,179,980 | ||||||
New York, NY, “J”, 5%, 8/01/22 | 1,000,000 | 1,169,660 | ||||||
New York, NY, “J”, FGIC, 5.5%, 2/15/26 | 5,000 | 5,018 | ||||||
State of Illinois, 5.5%, 7/01/33 | 180,000 | 194,609 | ||||||
State of Illinois, 5.5%, 7/01/38 | 535,000 | 573,804 | ||||||
$ | 12,234,046 | |||||||
General Obligations - Schools - 1.1% | ||||||||
Beaumont, CA, Unified School District (Election of 2008), Capital Appreciation, “C”, AGM, 0%, 8/01/40 | $ | 3,730,000 | $ | 926,644 | ||||
Port Byron, NY, Central School District, ETM, AMBAC, 7.4%, 6/15/14 (c) | 500,000 | 507,265 | ||||||
Port Byron, NY, Central School District, ETM, AMBAC, 7.4%, 6/15/15 (c) | 500,000 | 543,315 | ||||||
$ | 1,977,224 | |||||||
Healthcare Revenue - Hospitals - 9.6% | ||||||||
Chautauqua County, NY, Capital Resource Corp. Rev. (Women’s Christian Assn.), “A”, 8%, 11/15/30 | $ | 550,000 | $ | 574,057 | ||||
Genesee County, NY, Industrial Development Agency, Civic Facilities Rev. (United Medical Center Project), 5%, 12/01/32 | 500,000 | 479,820 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.25%, 7/01/31 | 215,000 | 234,554 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.375%, 7/01/41 | 715,000 | 779,965 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Madison County, NY, Industrial Development Agency, Civic Facilities Rev. (Oneida), 5.25%, 2/01/27 | $ | 1,425,000 | $ | 1,426,368 | ||||
Miami-Dade County, FL, Health Facilities Authority Hospital Rev. (Variety Children’s Hospital), “A”, 6%, 8/01/30 | 165,000 | 183,863 | ||||||
Monroe County, NY, Industrial Development Agency, Civic Facilities Rev. (Highland Hospital of Rochester), 5%, 8/01/25 | 995,000 | 1,025,805 | ||||||
New Hampshire Business Finance Authority Rev. (Huggins Hospital), 6.875%, 10/01/39 | 35,000 | 36,967 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (Bronx-Lebanon Hospital Center), LOC, 6.25%, 2/15/35 | 1,495,000 | 1,642,332 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (Hospital Special Surgery), FHA, 6.25%, 8/15/34 | 2,000,000 | 2,300,640 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (Mount Sinai Hospital), “A”, 5%, 7/01/26 | 2,000,000 | 2,145,980 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (NYU Hospitals Center), “A”, 5.5%, 7/01/25 | 750,000 | 839,243 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (Orange Regional Medical Center), 6.25%, 12/01/37 | 750,000 | 738,098 | ||||||
New York, NY, Health & Hospital Corp. Rev., “A”, 5.5%, 2/15/23 | 1,000,000 | 1,103,670 | ||||||
Onondaga, NY, Civic Development Corp. Rev. (St. Joseph’s Hospital Health Center), 4.5%, 7/01/32 | 500,000 | 438,645 | ||||||
Suffolk County, NY, Economic Development Corp. Rev. (Catholic Health Services of Long Island), 5%, 7/01/28 | 1,000,000 | 1,031,800 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 6.75%, 7/01/29 | 165,000 | 184,607 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 7%, 7/01/39 | 395,000 | 434,638 | ||||||
Westchester County, NY, Health Care Corp. Rev., “B”, 6%, 11/01/30 | 1,000,000 | 1,118,920 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (Wheaton Franciscan Healthcare), 5.25%, 8/15/31 | 945,000 | 966,017 | ||||||
$ | 17,685,989 | |||||||
Healthcare Revenue - Long Term Care - 1.3% | ||||||||
Suffolk County, NY, Economic Development Corp. Rev. (Peconic Landing at Southold, Inc.), 6%, 12/01/40 | $ | 1,000,000 | $ | 1,076,500 |
27
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Long Term Care - continued | ||||||||
Suffolk County, NY, Industrial Development Agency, Civic Facilities Rev. (Gurwin Jewish Phase II), 6.7%, 5/01/14 (c) | $ | 370,000 | $ | 379,272 | ||||
Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7%, 11/01/30 | 120,000 | 133,448 | ||||||
Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7.125%, 11/01/40 | 180,000 | 198,034 | ||||||
Ulster County, NY, Industrial Development Agency (Woodland Pond), “A”, 6%, 9/15/37 | 500,000 | 390,700 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), “A”, 7.25%, 9/15/29 | 20,000 | 21,943 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), “A”, 7.625%, 9/15/39 | 130,000 | 142,981 | ||||||
$ | 2,342,878 | |||||||
Human Services - 0.4% | ||||||||
New York Dormitory Authority Rev., Non-State Supported Debt (NYSARC, Inc.), “A”, 6%, 7/01/32 | $ | 705,000 | $ | 770,713 | ||||
Industrial Revenue - Airlines - 0.3% | ||||||||
New York, NY, City Industrial Development Agency Special Facility Rev. (American Airlines, Inc. - JFK International Airport Project), 7.625%, 8/01/25 | $ | 350,000 | $ | 382,386 | ||||
New York, NY, City Industrial Development Agency Special Facility Rev. (American Airlines, Inc. - JFK International Airport Project), 7.75%, 8/01/31 | 100,000 | 109,374 | ||||||
$ | 491,760 | |||||||
Industrial Revenue - Environmental Services - 0.6% | ||||||||
Niagara County, NY, Industrial Development Agency, Solid Waste Disposal Rev. (Covanta Energy Project), “A”, 5.25%, 11/01/42 | $ | 1,160,000 | $ | 1,130,142 | ||||
Industrial Revenue - Other - 1.1% | ||||||||
Liberty, NY, Development Corp. Rev. (Goldman Sachs Headquarters), 5.25%, 10/01/35 | $ | 580,000 | $ | 636,985 | ||||
New York, NY, City Industrial Development Agency Rev., Liberty Bonds (IAC/InterActiveCorp), 5%, 9/01/35 | 250,000 | 250,968 | ||||||
Onondaga County, NY, Industrial Development Agency, Sewer Facilities Rev. (Bristol-Meyers Squibb Co.), 5.75%, 3/01/24 | 1,000,000 | 1,203,770 | ||||||
$ | 2,091,723 | |||||||
Industrial Revenue - Paper - 0.2% | ||||||||
Essex County, NY, Industrial Development Agency, Pollution Control Rev. (International Paper Corp.), 6.15%, 4/01/21 | $ | 470,000 | $ | 470,649 |
Issuer | Shares/Par | Value ($) | ||||||
Miscellaneous Revenue - Entertainment & Tourism - 1.0% | ||||||||
Brooklyn, NY, Arena Local Development Corp. (Barclays Center Project), 6.25%, 7/15/40 | $ | 1,750,000 | $ | 1,877,575 | ||||
Miscellaneous Revenue - Other - 5.5% | ||||||||
Indiana Finance Authority Rev., (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/40 | $ | 205,000 | $ | 204,686 | ||||
Indiana Finance Authority Rev., (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/44 | 315,000 | 310,625 | ||||||
New York Liberty Development Corp. Liberty Rev., (7 World Trade Center Project), 5%, 9/15/40 | 1,665,000 | 1,783,248 | ||||||
New York Liberty Development Corp., Liberty Rev. (One Bryant Park LLC), 6.375%, 7/15/49 | 2,500,000 | 2,695,275 | ||||||
New York Liberty Development Corp., Liberty Rev. (World Trade Center Project), 5%, 11/15/44 | 1,000,000 | 1,035,150 | ||||||
New York, NY, Industrial Development Agency, Airport Facilities Rev. (Transportation Infrastructure Properties LLC), 5%, 7/01/28 | 3,000,000 | 3,048,420 | ||||||
New York, NY, Industrial Development Agency, Civic Facilities Rev. (United Jewish Appeal - Federation of Jewish Philanthropies of NY, Inc.), “A”, 5%, 7/01/27 | 1,000,000 | 1,009,070 | ||||||
$ | 10,086,474 | |||||||
Multi-Family Housing Revenue - 2.8% | ||||||||
East Rochester, NY, Housing Authority Rev. (Woodland Village Project), 5.5%, 8/01/33 | $ | 400,000 | $ | 372,508 | ||||
New York Housing Finance Agency Rev. (Affordable Housing), “D”, 5%, 11/01/40 | 1,520,000 | 1,552,026 | ||||||
New York Housing Finance Agency Rev., “A”, 5.1%, 8/15/41 | 755,000 | 755,347 | ||||||
New York Housing Finance Agency Rev., “A”, 5.25%, 11/01/41 | 1,000,000 | 1,037,350 | ||||||
New York, NY, City Housing Development Corp., 5.5%, 11/01/34 | 15,000 | 15,053 | ||||||
New York, NY, City Housing Development Corp., “C”, 5%, 11/01/26 | 500,000 | 504,205 | ||||||
New York, NY, City Housing Development Corp., Multifamily Housing Rev., 4.8%, 11/01/35 | 1,000,000 | 1,019,150 | ||||||
$ | 5,255,639 | |||||||
Sales & Excise Tax Revenue - 0.9% | ||||||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6%, 1/15/34 | $ | 1,000,000 | $ | 1,057,130 | ||||
Guam Government Business Privilege Tax Rev., “C”, 5%, 11/15/16 | 180,000 | 197,566 | ||||||
Guam Government Business Privilege Tax Rev., “C”, 5%, 11/15/17 | 200,000 | 223,574 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “A”, 5.5%, 8/01/19 (c) | 10,000 | 12,081 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “C”, 5%, 8/01/40 | 275,000 | 225,374 | ||||||
$ | 1,715,725 |
28
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Single Family Housing - State - 2.3% | ||||||||
New York Housing Finance Agency Rev., “E”, 3%, 11/01/30 | $ | 1,000,000 | $ | 862,900 | ||||
New York Housing Finance Agency Rev., “E”, 3.4%, 11/01/37 | 1,000,000 | 848,470 | ||||||
New York Mortgage Agency Rev., “130”, 4.65%, 4/01/27 | 1,630,000 | 1,654,238 | ||||||
New York Mortgage Agency Rev., “49”, 3.8%, 10/01/38 | 1,000,000 | 988,980 | ||||||
$ | 4,354,588 | |||||||
State & Agency - Other - 0.9% | ||||||||
New York Dormitory Authority (City University), AMBAC, 5.75%, 7/01/18 | $ | 800,000 | $ | 883,392 | ||||
New York State Dormitory Authority Rev. (State University) , “B”, FGIC, 5.25%, 5/15/19 | 715,000 | 777,112 | ||||||
$ | 1,660,504 | |||||||
State & Local Agencies - 11.8% | ||||||||
Delaware Valley, PA, Regional Finance Authority, “C”, FRN, 0.908%, 6/01/37 | $ | 1,405,000 | $ | 957,016 | ||||
Massachusetts College Building Authority Rev., “A”, 5%, 5/01/31 | 215,000 | 241,312 | ||||||
New York City Educational Construction Fund Rev., “A”, 5.75%, 4/01/33 | 1,860,000 | 2,126,333 | ||||||
New York Dormitory Authority Rev. (School Program), 6.25%, 7/01/20 | 1,390,000 | 1,396,338 | ||||||
New York Dormitory Authority Rev., City University System, “A”, 5.625%, 7/01/16 | 2,415,000 | 2,569,222 | ||||||
New York Dormitory Authority Rev., State Personal Income Tax, “D”, 5%, 2/15/40 | 830,000 | 885,510 | ||||||
New York Dormitory Authority Rev., State University Educational Facilities, “A”, 5.875%, 5/15/17 | 1,130,000 | 1,261,238 | ||||||
New York Tobacco Settlement Financing Corp., Asset-Backed Rev., “B”, 5%, 6/01/21 | 2,000,000 | 2,159,840 | ||||||
New York Urban Development Corp. Rev. (State Facilities), AMBAC, 5.6%, 4/01/15 | 1,060,000 | 1,087,719 | ||||||
New York Urban Development Corp. Rev., “D”, 5.625%, 1/01/28 | 2,000,000 | 2,275,980 | ||||||
New York Urban Development Corp. Rev., State Personal Income Tax Rev., “C”, 5%, 12/15/18 | 3,000,000 | 3,496,980 | ||||||
New York Urban Development Corp., State Personal Income Tax Rev., “D”, 5%, 3/15/22 | 2,000,000 | 2,358,440 | ||||||
United Nations Development Corp., “A”, 5%, 7/01/26 | 500,000 | 540,350 | ||||||
University of Kentucky, General Receipts, “A”, 5%, 4/01/36 | 125,000 | 138,144 | ||||||
University of Kentucky, General Receipts, “A”, 5%, 4/01/37 | 230,000 | 253,377 | ||||||
$ | 21,747,799 | |||||||
Tax - Other - 9.0% | ||||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/24 | $ | 270,000 | $ | 285,263 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/29 | 90,000 | 94,181 |
Issuer | Shares/Par | Value ($) | ||||||
Tax - Other - continued | ||||||||
Hudson Yards, NY, Infrastructure Corp. Rev., “A”, 5.75%, 2/15/47 | $ | 3,000,000 | $ | 3,297,240 | ||||
New York Dormitory Authority, State Personal Income Tax Rev., “A”, 5%, 12/15/25 | 2,000,000 | 2,295,960 | ||||||
New York, NY, City Transitional Finance Authority Building Aid Rev., “S-2A”, 5%, 7/15/40 | 2,000,000 | 2,125,160 | ||||||
New York, NY, City Transitional Finance Authority Building Aid Rev., “S-3”, 5.25%, 1/15/39 | 2,000,000 | 2,163,800 | ||||||
New York, NY, City Transitional Finance Authority Building Aid Rev., “S-5”, 5%, 1/15/32 | 1,000,000 | 1,081,040 | ||||||
New York, NY, City Transitional Finance Authority Rev., “D”, 5%, 2/01/27 | 3,000,000 | 3,363,900 | ||||||
Virgin Islands Public Finance Authority Rev. (Diageo), “A”, 6.625%, 10/01/29 | 605,000 | 648,409 | ||||||
Virgin Islands Public Finance Authority Rev., “A-1”, 5%, 10/01/39 | 1,250,000 | 1,244,638 | ||||||
$ | 16,599,591 | |||||||
Tobacco - 4.1% | ||||||||
Buckeye, OH, Tobacco Settlement Financing Authority, “A-2”, 5.875%, 6/01/47 | $ | 590,000 | $ | 475,021 | ||||
Buckeye, OH, Tobacco Settlement Financing Authority, “A-3”, 6.25%, 6/01/37 | 765,000 | 645,874 | ||||||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A-1”, 5.75%, 6/01/47 | 775,000 | 624,821 | ||||||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A-2”, 5.3%, 6/01/37 | 1,235,000 | 942,848 | ||||||
Illinois Railsplitter Tobacco Settlement Authority, 6%, 6/01/28 | 355,000 | 400,223 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.5%, 6/01/23 | 460,000 | 442,249 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.75%, 6/01/34 | 335,000 | 253,009 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 5%, 6/01/41 | 1,535,000 | 1,154,995 | ||||||
New Jersey Tobacco Settlement Financing Corp., Capital Appreciation, “1-B”, 0%, 6/01/41 | 2,550,000 | 614,703 | ||||||
New Jersey Tobacco Settlement Financing Corp., Capital Appreciation, “1-C”, 0%, 6/01/41 | 35,000 | 8,306 | ||||||
New York County Tobacco Trust II, 5.625%, 6/01/35 | 795,000 | 789,586 | ||||||
Suffolk, NY, Tobacco Asset Securitization Corp., Tobacco Settlement, “B”, 5%, 6/01/32 | 750,000 | 759,480 | ||||||
Westchester, NY, Tobacco Asset Securitization Corp., 5.125%, 6/01/45 | 500,000 | 395,870 | ||||||
$ | 7,506,985 | |||||||
Toll Roads - 4.4% | ||||||||
New York Thruway Authority General Rev., Junior Indebtedness Obligation, “A”, 5%, 5/01/19 | $ | 1,500,000 | $ | 1,732,695 |
29
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Toll Roads - continued | ||||||||
Texas Private Activity Surface Transportation Corp. Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 7%, 12/31/38 | $ | 205,000 | $ | 232,503 | ||||
Texas Private Activity Surface Transportation Corp. Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 6.75%, 6/30/43 | 170,000 | 188,336 | ||||||
Triborough Bridge & Tunnel Authority Rev., NY, “A”, 5%, 1/01/28 | 1,000,000 | 1,120,370 | ||||||
Triborough Bridge & Tunnel Authority Rev., NY, “A-2”, 5%, 11/15/29 | 2,000,000 | 2,243,580 | ||||||
Triborough Bridge & Tunnel Authority Rev., NY, Capital Appreciation, “A”, 0%, 11/15/29 | 2,540,000 | 1,306,424 | ||||||
Triborough Bridge & Tunnel Authority Rev., NY, Capital Appreciation, “A”, 0%, 11/15/31 | 3,000,000 | 1,363,740 | ||||||
$ | 8,187,648 | |||||||
Transportation - Special Tax - 1.3% | ||||||||
Metropolitan Transportation Authority Rev., NY, “C”, 6.5%, 11/15/28 | $ | 2,000,000 | $ | 2,359,140 | ||||
Universities - Colleges - 18.2% | ||||||||
Albany, NY, Capital Resource Corp. Rev. (The College Saint Rose), “A”, 5.625%, 7/01/31 | $ | 1,000,000 | $ | 1,055,530 | ||||
Hempstead, NY, Industrial Development Agency Civic Rev. (Adelphi University), 5%, 10/01/30 | 1,515,000 | 1,582,508 | ||||||
Hempstead, NY, Local Development Corp. Rev. (Adelphi University), “B”, 5.25%, 2/01/39 | 500,000 | 522,030 | ||||||
Hempstead, NY, Local Development Corp. Rev. (Hofstra University Project), 5%, 7/01/28 | 1,000,000 | 1,083,880 | ||||||
Illinois Finance Authority Rev. (Roosevelt University Project), 6.25%, 4/01/29 | 1,945,000 | 2,005,937 | ||||||
Madison County, NY, Industrial Development Agency Civic Facilities Rev. (Colgate University), “A”, AMBAC, 5%, 7/01/35 | 1,585,000 | 1,627,874 | ||||||
Miami-Dade County, FL, Educational Facilities Authority Rev. (University of Miami), “B”, 5.25%, 4/01/29 | 1,325,000 | 1,507,201 | ||||||
Monroe County, NY, Industrial Development Corp. Rev., “A”, 5%, 7/01/23 | 500,000 | 567,445 | ||||||
Monroe County, NY, Industrial Development Corp. Rev., “A”, 5%, 7/01/24 | 1,000,000 | 1,129,310 | ||||||
New Jersey Educational Facilities Authority Rev. (University of Medicine & Dentistry), “B”, ETM, 6%, 12/01/17 (c) | 985,000 | 1,140,610 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (Brooklyn Law School), 5.75%, 7/01/33 | 600,000 | 634,932 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (Cornell University), “A”, 5%, 7/01/31 | 2,000,000 | 2,111,540 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (Manhattan Marymount), 5.125%, 7/01/39 | 2,000,000 | 2,074,700 |
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
New York Dormitory Authority Rev., Non-State Supported Debt (New York University), “A”, FGIC, 5%, 7/01/29 | $ | 1,000,000 | $ | 1,009,970 | ||||
New York Dormitory Authority Rev., Non-State Supported Debt (New York University), “A”, 5.25%, 7/01/48 | 1,955,000 | 2,080,804 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (Pace University), “A”, 5%, 5/01/38 | 500,000 | 482,345 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (Pace University), “A”, 4.25%, 5/01/42 | 1,000,000 | 828,430 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (St. John’s University), “A”, 5%, 7/01/27 | 950,000 | 1,046,235 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (St. Josephs College), 5.25%, 7/01/35 | 2,000,000 | 2,052,260 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt, “A”, 5%, 10/01/20 | 2,000,000 | 2,301,900 | ||||||
Onondaga, NY, Civic Development Corp. Rev. (Le Moyne College Project), 5.375%, 7/01/40 | 2,000,000 | 2,073,260 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical, & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.125%, 4/01/32 | 80,000 | 65,420 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical, & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.375%, 4/01/42 | 135,000 | 106,853 | ||||||
Seneca County, NY, Industrial Development Agency, Civic Facilities Rev. (New York Chiropractic), 5%, 10/01/27 | 500,000 | 512,875 | ||||||
St. Lawrence County, NY, Industrial Development Agency Rev. (Clarkson University), 5%, 7/01/31 | 2,225,000 | 2,293,308 | ||||||
Troy, NY, Industrial Development Authority, Civic Facility Rev. (Rensselaer Polytechnical Institute), “E”, 5%, 9/01/31 | 1,000,000 | 1,058,290 | ||||||
Yonkers, NY, Industrial Development Agency, Civic Facilities Rev. (Sarah Lawrence College Project), “A”, 6%, 6/01/41 | 595,000 | 638,203 | ||||||
$ | 33,593,650 | |||||||
Universities - Dormitories - 1.2% | ||||||||
Buffalo & Erie County, NY, Industrial Land Development Corp. Rev. (Buffalo State College), “A”, 5.375%, 10/01/41 | $ | 2,000,000 | $ | 2,147,420 | ||||
Universities - Secondary Schools - 1.1% | ||||||||
Build NYC Resource Corp. Rev. (International Leadership Charter School Project), 6%, 7/01/43 (n) | $ | 750,000 | $ | 702,960 | ||||
Build NYC Resource Corp. Rev. (South Bronx Charter School for International Cultures and the Arts), “A”, 5%, 4/15/43 | 1,000,000 | 787,930 |
30
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Universities - Secondary Schools - continued | ||||||||
La Vernia, TX, Higher Education Finance Corp. Rev. (Lifeschool of Dallas), “A”, 7.5%, 8/15/41 | $ | 535,000 | $ | 602,613 | ||||
$ | 2,093,503 | |||||||
Utilities - Municipal Owned - 4.2% | ||||||||
Guam Power Authority Rev., “A”, 5.5%, 10/01/30 | $ | 515,000 | $ | 543,722 | ||||
Long Island, NY, Power Authority, Electric Systems Rev., “A”, 5%, 5/01/21 | 1,500,000 | 1,680,855 | ||||||
Long Island, NY, Power Authority, Electric Systems Rev., “A”, 6.25%, 4/01/33 | 1,000,000 | 1,143,220 | ||||||
Long Island, NY, Power Authority, Electric Systems Rev., “A”, 6%, 5/01/33 | 2,000,000 | 2,257,480 | ||||||
New York Utility Debt Securitization Authority Rev., “TE”, 5%, 6/15/18 | 1,500,000 | 1,633,650 | ||||||
New York Utility Debt Securitization Authority Rev., “TE”, 5%, 12/15/18 | 500,000 | 554,555 | ||||||
$ | 7,813,482 | |||||||
Utilities - Other - 0.8% | ||||||||
Public Authority for Colorado Energy Natural Gas Purchase Rev., 6.5%, 11/15/38 | $ | 1,085,000 | $ | 1,369,899 | ||||
Texas Gas Acquisition & Supply Corp III., Gas Supply Rev., 5%, 12/15/31 | 115,000 | 116,857 | ||||||
$ | 1,486,756 | |||||||
Water & Sewer Utility Revenue - 4.2% | ||||||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 5%, 7/01/33 | $ | 1,345,000 | $ | 901,648 | ||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 5.125%, 7/01/37 | 170,000 | 115,287 | ||||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 6%, 7/01/44 | 95,000 | 70,177 |
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - continued | ||||||||
Guam Government Waterworks Authority, Water & Wastewater System Rev., 5.625%, 7/01/40 | $ | 315,000 | $ | 326,274 | ||||
Mississippi Development Bank Special Obligation (City of Jackson Water and Sewer System Rev. Bond Project), AGM, 6.875%, 12/01/40 | 100,000 | 125,680 | ||||||
New York Environmental Facilities Corp., Clean Water & Drinking Rev., “A”, 5%, 6/15/26 | 2,000,000 | 2,343,980 | ||||||
New York Environmental Facilities Corp., Clean Water & Drinking Rev., “B”, 5%, 6/15/33 | 2,140,000 | 2,335,896 | ||||||
New York, NY, Municipal Water & Sewer Finance Authority Rev., 4.75%, 6/15/30 | 1,245,000 | 1,320,733 | ||||||
New York, NY, Municipal Water & Sewer Finance Authority Rev., ETM, AMBAC, 6.75%, 12/01/14 (c) | 165,000 | 172,136 | ||||||
$ | 7,711,811 | |||||||
Total Municipal Bonds (Identified Cost, $171,508,517) | $ | 179,377,050 | ||||||
Money Market Funds - 1.4% | ||||||||
MFS Institutional Money Market Portfolio, 0.09%, at Cost and Net Asset Value (v) | 2,613,642 | $ | 2,613,642 | |||||
Total Investments (Identified Cost, $174,122,159) | $ | 181,990,692 | ||||||
Other Assets, Less Liabilities - 1.6% | 2,884,948 | |||||||
Net Assets - 100.0% | $ | 184,875,640 |
See Portfolio Footnotes and Notes to Financial Statements
31
Table of Contents
PORTFOLIO OF INVESTMENTS
3/31/14
MFS NORTH CAROLINA MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
Municipal Bonds - 98.3% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 6.0% | ||||||||
Charlotte, NC, Airport Rev. (Charlotte/Douglas International Airport), AMBAC, 5%, 7/01/23 | $ | 1,430,000 | $ | 1,568,324 | ||||
Charlotte, NC, Airport Rev., “A”, 4.75%, 7/01/28 | 1,250,000 | 1,332,563 | ||||||
Charlotte, NC, Airport Rev., “A”, NATL, 5%, 7/01/29 | 2,000,000 | 2,018,240 | ||||||
Charlotte, NC, Airport Rev., “A”, NATL, 5%, 7/01/34 | 4,485,000 | 4,503,030 | ||||||
Charlotte, NC, Airport Rev., “A”, 5%, 7/01/36 | 3,000,000 | 3,181,080 | ||||||
Chicago, IL, O’Hare International Airport Rev. General Airport Sr. Lien Rev., “A”, 5%, 1/01/22 | 2,515,000 | 2,841,648 | ||||||
Chicago, IL, O’Hare International Airport Rev., Third Lien, “A”, 5.625%, 1/01/35 | 1,055,000 | 1,154,096 | ||||||
Raleigh Durham, NC, Airport Authority Rev., “A”, 5%, 5/01/36 | 3,440,000 | 3,712,379 | ||||||
$ | 20,311,360 | |||||||
General Obligations - General Purpose - 6.3% | ||||||||
Cary, NC, Public Improvement, 5%, 3/01/24 | $ | 2,940,000 | $ | 3,575,863 | ||||
Guam Government, “A”, 6.75%, 11/15/29 | 240,000 | 254,191 | ||||||
Guam Government, “A”, 7%, 11/15/39 | 265,000 | 280,685 | ||||||
Mecklenburg County, NC, “A”, 5%, 8/01/18 | 5,100,000 | 5,928,903 | ||||||
New Hanover County, NC, Community College Bonds, “A”, 5%, 6/01/21 | 2,265,000 | 2,686,290 | ||||||
New Hanover County, NC, Public Improvement, “A”, 5%, 8/01/30 | 2,000,000 | 2,228,900 | ||||||
North Carolina Capital Improvement Obligation, “A”, 5%, 5/01/26 | 1,450,000 | 1,646,272 | ||||||
North Carolina Capital Improvement Obligation, “C”, 5%, 5/01/25 | 2,710,000 | 3,127,936 | ||||||
State of Illinois, 5.5%, 7/01/33 | 365,000 | 394,623 | ||||||
State of Illinois, 5.5%, 7/01/38 | 1,095,000 | 1,174,420 | ||||||
$ | 21,298,083 | |||||||
General Obligations - Schools - 4.6% | ||||||||
Johnston County, NC, “B”, 5%, 2/01/18 | $ | 1,425,000 | $ | 1,634,461 | ||||
Wake County, NC, “C”, 5%, 3/01/20 | 3,000,000 | 3,552,630 | ||||||
Wake County, NC, “C”, 5%, 3/01/21 | 3,000,000 | 3,576,060 | ||||||
Wake County, NC, “C”, 5%, 3/01/24 | 5,570,000 | 6,774,680 | ||||||
$ | 15,537,831 | |||||||
Healthcare Revenue - Hospitals - 18.8% | ||||||||
Albemarle, NC, Hospital Authority Health Care Facilities Rev., 5.25%, 10/01/38 | $ | 2,000,000 | $ | 2,303,100 | ||||
Charlotte-Mecklenburg, NC, Hospital Authority Health Care System Rev. (Carolinas Health Care System), “A”, 5%, 1/15/31 | 1,000,000 | 1,024,970 | ||||||
Charlotte-Mecklenburg, NC, Hospital Authority Health Care System Rev. (Carolinas Health Care System), “A”, 5.25%, 1/15/34 | 4,000,000 | 4,302,000 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 7%, 8/15/44 | $ | 1,140,000 | $ | 1,248,311 | ||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.25%, 7/01/31 | 360,000 | 392,742 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.375%, 7/01/41 | 1,385,000 | 1,510,841 | ||||||
Louisville & Jefferson County, KY, Metropolitan Government Healthcare Systems Rev. (Norton Healthcare, Inc.), 5.25%, 10/01/36 | 1,820,000 | 1,838,182 | ||||||
Miami-Dade County, FL, Health Facilities Authority Hospital Rev. (Variety Children’s Hospital), “A”, 6%, 8/01/30 | 310,000 | 345,439 | ||||||
Michigan Hospital Finance Authority Rev. (Henry Ford Health System), 5.75%, 11/15/39 | 1,450,000 | 1,512,684 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6%, 10/01/27 | 790,000 | 848,705 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6.125%, 10/01/39 | 1,110,000 | 1,162,303 | ||||||
New Hampshire Business Finance Authority Rev. (Huggins Hospital), 6.875%, 10/01/39 | 55,000 | 58,092 | ||||||
North Carolina Hospital Authority Mortgage Rev. (Johnston Memorial), AGM, 5.25%, 10/01/36 | 1,960,000 | 2,098,141 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Appalachian Regional Healthcare System), “A”, 6.375%, 7/01/26 | 2,000,000 | 2,253,160 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Appalachian Regional Healthcare System), “A”, 6.5%, 7/01/31 | 1,000,000 | 1,127,660 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Cleveland County HealthCare System), 5.75%, 1/01/21 (c) | 800,000 | 988,944 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Cleveland County Healthcare System), “A”, AMBAC, 5%, 7/01/14 (c) | 1,155,000 | 1,168,687 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Columbus Regional Healthcare System), “A”, 4%, 10/01/42 | 2,000,000 | 1,653,080 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Duke University Health System), “A”, 5%, 6/01/35 | 1,620,000 | 1,714,867 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Duke University Health System), “A”, 5%, 6/01/42 | 2,420,000 | 2,560,529 |
32
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Duke University Health System), “A”, 5%, 6/01/42 | $ | 3,500,000 | $ | 3,689,945 | ||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Novant Health Obligation Group), “A”, 5.25%, 11/01/40 | 3,000,000 | 3,181,080 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Rex Healthcare), “A”, 5%, 7/01/30 | 5,250,000 | 5,621,070 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (WakeMed), “A”, ASSD GTY, 5.625%, 10/01/14 (c) | 500,000 | 513,525 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (WakeMed), “A”, 5%, 10/01/31 | 4,355,000 | 4,682,278 | ||||||
North Carolina Medical Care Commission, Health System Rev. (Mission Health System, Inc.), 5%, 10/01/25 | 1,600,000 | 1,715,296 | ||||||
North Carolina Medical Care Commission, Hospital Rev. (The North Carolina Baptist Hospitals, Inc.), 5.25%, 6/01/29 | 2,215,000 | 2,429,346 | ||||||
North Carolina Medical Care Commission, Hospital Rev. (The North Carolina Baptist Hospitals, Inc.), 5%, 6/01/34 | 2,000,000 | 2,079,340 | ||||||
North Carolina Medical Care Commission, Hospital Rev. (Wilson Memorial Hospital), Capital Appreciation, AMBAC, 0%, 11/01/15 | 1,140,000 | 1,132,829 | ||||||
Northern Hospital District, Surry County, NC, Health Care Facilities Rev., 6.25%, 10/01/38 | 1,000,000 | 1,058,460 | ||||||
Onslow County, NC, Hospital Authority (Onslow Memorial Hospital Project), NATL, 5%, 10/01/26 | 1,155,000 | 1,199,121 | ||||||
Royal Oak, MI, Hospital Finance Authority Rev. (William Beaumont Hospital), 8.25%, 9/01/39 | 2,040,000 | 2,481,232 | ||||||
St. Petersburg, FL, Health Facilities Authority Rev., 6.5%, 11/15/39 | 470,000 | 530,574 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 6.75%, 7/01/29 | 270,000 | 302,084 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 7%, 7/01/39 | 635,000 | 698,722 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (ProHealth Care, Inc. Obligated Group), 6.625%, 2/15/39 | 2,195,000 | 2,436,121 | ||||||
$ | 63,863,460 | |||||||
Healthcare Revenue - Long Term Care - 1.4% | ||||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Lutheran Services for the Aging, Inc. Obligated Services) “A”, 5%, 3/01/37 | $ | 1,000,000 | $ | 918,200 | ||||
North Carolina Medical Care Commission, Retirement Facilities Rev. (Galloway Ridge Project), “A”, 5.875%, 1/01/31 | 480,000 | 488,717 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Long Term Care - continued | ||||||||
North Carolina Medical Care Commission, Retirement Facilities Rev. (Galloway Ridge Project), “A”, 6%, 1/01/39 | $ | 1,520,000 | $ | 1,544,138 | ||||
North Carolina Medical Care Commission, Retirement Facilities Rev. (The United Methodist Retirement Homes), “A”, 5%, 10/01/33 | 1,590,000 | 1,549,423 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), “A”, 7.25%, 9/15/29 | 35,000 | 38,401 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), “A”, 7.625%, 9/15/39 | 220,000 | 241,967 | ||||||
$ | 4,780,846 | |||||||
Industrial Revenue - Paper - 0.3% | ||||||||
Columbus County, NC, Industrial Facilities & Pollution Control, Financing Authority Rev. (International Paper Co.), 5.7%, 5/01/34 | $ | 1,000,000 | $ | 1,043,700 | ||||
Miscellaneous Revenue - Other - 1.7% | ||||||||
Durham County, NC, Industrial Facilities & Pollution Control Financing Authority Rev. (Research Triangle Institute), 5%, 2/01/25 | $ | 1,000,000 | $ | 1,185,730 | ||||
Indiana Finance Authority Rev., (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/40 | 420,000 | 419,357 | ||||||
Indiana Finance Authority Rev., (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/44 | 640,000 | 631,110 | ||||||
New York Liberty Development Corp. Liberty Rev., (7 World Trade Center Project), 5%, 9/15/40 | 3,145,000 | 3,368,358 | ||||||
Summit County, OH, Port Authority Building Rev. (Flats East Development Recovery Zone Facility Bonds), 6.875%, 5/15/40 | 100,000 | 107,601 | ||||||
$ | 5,712,156 | |||||||
Multi-Family Housing Revenue - 0.6% | ||||||||
Mecklenburg County, NC (Little Rock Apartments), FNMA, 5.15%, 1/01/22 | $ | 855,000 | $ | 854,966 | ||||
North Carolina Medical Care Commission, Health Care Facilities Rev., “A” (ARC Projects), 5.8%, 10/01/34 | 1,000,000 | 1,026,990 | ||||||
$ | 1,881,956 | |||||||
Port Revenue - 0.3% | ||||||||
North Carolina Ports Authority Facilities Rev., “A”, 5.25%, 2/01/40 | $ | 1,000,000 | $ | 1,041,130 | ||||
Sales & Excise Tax Revenue - 1.0% | ||||||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6.5%, 1/15/30 | $ | 1,675,000 | $ | 1,846,805 | ||||
Guam Government Business Privilege Tax Rev., “A”, 5.25%, 1/01/36 | 1,140,000 | 1,180,219 |
33
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Sales & Excise Tax Revenue - continued | ||||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “A”, 5.5%, 8/01/19 (c) | $ | 15,000 | $ | 18,121 | ||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “C”, 5%, 8/01/40 | 555,000 | 454,845 | ||||||
$ | 3,499,990 | |||||||
Single Family Housing - State - 1.9% | ||||||||
North Carolina Housing Finance Agency Rev., “23-A”, 4.8%, 1/01/37 | $ | 1,490,000 | $ | 1,495,796 | ||||
North Carolina Housing Finance Agency Rev., “24-A”, 4.75%, 7/01/26 | 1,545,000 | 1,553,111 | ||||||
North Carolina Housing Finance Agency Rev., “25-A”, 5.75%, 1/01/37 | 200,000 | 205,478 | ||||||
North Carolina Housing Finance Agency Rev., “29-A”, 4.85%, 7/01/38 | 1,430,000 | 1,437,922 | ||||||
North Carolina Housing Finance Agency Rev., “31-A”, 5.25%, 7/01/38 | 1,570,000 | 1,645,140 | ||||||
$ | 6,337,447 | |||||||
State & Agency - Other - 2.4% | ||||||||
Charlotte, NC, COP (Transit Projects), 5%, 6/01/33 | $ | 3,000,000 | $ | 3,157,260 | ||||
Charlotte, NC, COP (Transit Projects), “E”, 5%, 6/01/35 | 1,990,000 | 1,995,652 | ||||||
Charlotte, NC, COP, “E”, 5%, 6/01/26 | 760,000 | 838,265 | ||||||
Charlotte, NC, COP, “E”, 5%, 6/01/34 | 2,000,000 | 2,142,400 | ||||||
$ | 8,133,577 | |||||||
State & Local Agencies - 10.8% | ||||||||
Asheville, NC, Limited Obligation, 5%, 4/01/28 | $ | 400,000 | $ | 448,336 | ||||
Charlotte, NC, COP (NASCAR Hall of Fame), “C”, 5%, 6/01/39 | 5,130,000 | 5,344,947 | ||||||
Delaware Valley, PA, Regional Finance Authority, “C”, FRN, 0.908%, 6/01/37 | 2,260,000 | 1,539,399 | ||||||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., Enhanced, “A”, ASSD GTY, 5%, 6/01/45 | 1,355,000 | 1,357,033 | ||||||
Harnett County, NC, 5%, 6/01/14 (c) | 655,000 | 660,168 | ||||||
Harnett County, NC, 5%, 6/01/28 | 45,000 | 45,199 | ||||||
Harnett County, NC, COP, ASSD GTY, 5%, 6/01/29 | 400,000 | 430,044 | ||||||
Iredell County, NC, Public Facilities (School Projects), AGM, 5.125%, 6/01/27 | 3,230,000 | 3,542,890 | ||||||
Mecklenburg County, NC, COP, “A”, 5%, 2/01/28 | 350,000 | 383,040 | ||||||
Mooresville, NC, COP, 5%, 9/01/32 | 3,120,000 | 3,272,225 | ||||||
Nash County, NC, Limited Obligation, ASSD GTY, 5%, 10/01/30 | 2,000,000 | 2,218,260 | ||||||
Orange County, NC, Public Facilities Co., Limited Obligation, 5%, 10/01/24 | 750,000 | 856,492 | ||||||
Pitt County, NC, Limited Obligation, “A”, 5%, 4/01/35 | 2,000,000 | 2,095,880 | ||||||
Salisbury, NC, COP, ASSD GTY, 5.625%, 3/01/26 | 1,000,000 | 1,108,410 | ||||||
University of Kentucky, General Receipts, “A”, 5%, 4/01/36 | 230,000 | 254,184 |
Issuer | Shares/Par | Value ($) | ||||||
State & Local Agencies - continued | ||||||||
University of Kentucky, General Receipts, “A”, 5%, 4/01/37 | $ | 425,000 | $ | 468,197 | ||||
Wake County, NC, Annual Appropriation Ltd., Obligation Bonds, “2009”, 5%, 6/01/32 | 3,000,000 | 3,302,880 | ||||||
Wake County, NC, Annual Appropriation Ltd., Obligation Bonds, “2010”, 5%, 1/01/33 | 6,000,000 | 6,655,320 | ||||||
Wilmington, NC, COP, “A”, 5%, 6/01/38 | 2,650,000 | 2,767,050 | ||||||
$ | 36,749,954 | |||||||
Tax - Other - 1.4% | ||||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/24 | $ | 420,000 | $ | 443,743 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/29 | 145,000 | 151,735 | ||||||
Virgin Islands Public Finance Authority Rev. (Diageo), “A”, 6.625%, 10/01/29 | 1,005,000 | 1,077,109 | ||||||
Virgin Islands Public Finance Authority Rev., “A-1”, 5%, 10/01/29 | 305,000 | 312,500 | ||||||
Virgin Islands Public Finance Authority Rev., “A-1”, 5%, 10/01/39 | 350,000 | 348,498 | ||||||
Virgin Islands Public Finance Authority Rev., “B”, 5%, 10/01/25 | 305,000 | 321,604 | ||||||
Virgin Islands Public Finance Authority Rev., Matching Fund Loan Note, “A”, 5%, 10/01/29 | 2,090,000 | 2,149,460 | ||||||
$ | 4,804,649 | |||||||
Tobacco - 2.4% | ||||||||
Buckeye, OH, Tobacco Settlement Financing Authority, “A-3”, 6.25%, 6/01/37 | $ | 1,295,000 | $ | 1,093,343 | ||||
Illinois Railsplitter Tobacco Settlement Authority, 6%, 6/01/28 | 1,975,000 | 2,226,595 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.5%, 6/01/23 | 940,000 | 903,725 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.75%, 6/01/34 | 540,000 | 407,835 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 5%, 6/01/41 | 3,085,000 | 2,321,277 | ||||||
New Jersey Tobacco Settlement Financing Corp., Capital Appreciation, “1-B”, 0%, 6/01/41 | 4,685,000 | 1,129,366 | ||||||
New Jersey Tobacco Settlement Financing Corp., Capital Appreciation, “1-C”, 0%, 6/01/41 | 60,000 | 14,238 | ||||||
$ | 8,096,379 | |||||||
Toll Roads - 0.8% | ||||||||
Texas Private Activity Surface Transportation Corp. Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 7%, 12/31/38 | $ | 435,000 | $ | 493,360 | ||||
Texas Private Activity Surface Transportation Corp. Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 6.75%, 6/30/43 | 350,000 | 387,751 | ||||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 6%, 1/01/37 | 725,000 | 771,414 |
34
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Toll Roads - continued | ||||||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 5.5%, 1/01/42 | $ | 1,160,000 | $ | 1,184,546 | ||||
$ | 2,837,071 | |||||||
Transportation - Special Tax - 4.2% | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “CC”, AGM, 5.5%, 7/01/28 | $ | 1,715,000 | $ | 1,698,159 | ||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ETM, AGM, 6%, 7/01/18 (c) | 5,810,000 | 6,771,962 | ||||||
North Carolina Turnpike Authority, Monroe Connector System State Appropriation Rev., 5%, 7/01/28 | 2,300,000 | 2,583,084 | ||||||
North Carolina Turnpike Authority, Monroe Connector System State Appropriation Rev., 5%, 7/01/36 | 3,000,000 | 3,255,600 | ||||||
$ | 14,308,805 | |||||||
Universities - Colleges - 14.3% | ||||||||
Appalachian State University, NC, Rev., NATL, 5%, 7/15/15 (c) | $ | 370,000 | $ | 392,751 | ||||
Appalachian State University, NC, Rev., 4%, 10/01/19 | 1,080,000 | 1,184,782 | ||||||
Appalachian State University, NC, Rev., NATL, 5%, 7/15/30 | 630,000 | 646,040 | ||||||
Florida State University Board of Governors, System Improvement Rev., 6.25%, 7/01/30 | 1,000,000 | 1,152,080 | ||||||
Illinois Finance Authority Rev. (Roosevelt University Project), 6.25%, 4/01/29 | 2,000,000 | 2,062,660 | ||||||
New Jersey Educational Facilities Authority Rev. (University of Medicine & Dentistry), “B”, ETM, 6%, 12/01/17 (c) | 1,545,000 | 1,789,079 | ||||||
North Carolina Capital Facilities Finance Agency, Educational Facilities Rev. (High Point University), 5.25%, 3/01/33 | 1,000,000 | 1,045,290 | ||||||
North Carolina Capital Facilities Finance Agency, Educational Facilities Rev. (Wake Forest University), 5%, 1/01/28 | 980,000 | 1,115,750 | ||||||
North Carolina Capital Facilities Finance Agency, Educational Facilities Rev. (Wake Forest University), 5%, 1/01/29 | 865,000 | 981,031 | ||||||
North Carolina Capital Facilities Finance Agency, Educational Facilities Rev. (Wake Forest University), 5%, 1/01/31 | 2,000,000 | 2,238,460 | ||||||
North Carolina Capital Facilities Finance Agency, Educational Facilities Rev. (Wake Forest University), 5%, 1/01/38 | 1,000,000 | 1,090,100 | ||||||
North Carolina Capital Facilities, Finance Agency Rev. (Duke University), “A”, 5%, 10/01/38 | 2,500,000 | 2,651,650 | ||||||
North Carolina Capital Facilities, Finance Agency Rev. (Meredith College), 6%, 6/01/31 | 3,240,000 | 3,423,578 | ||||||
Pinellas County, FL, Educational Facilities Authority Rev. (Barry University), 6%, 10/01/41 | 450,000 | 476,685 |
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
Puerto Rico Industrial Tourist Authority (University Plaza), “A”, NATL, 5%, 7/01/20 | $ | 2,180,000 | $ | 2,093,934 | ||||
Puerto Rico Industrial, Tourist, Educational, Medical, & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.125%, 4/01/32 | 170,000 | 139,017 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical, & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.375%, 4/01/42 | 275,000 | 217,663 | ||||||
Puerto Rico Industrial, Tourist, Medical, & Environmental Central Facilities (University of Sacred Heart), 4.375%, 10/01/31 | 115,000 | 89,216 | ||||||
Puerto Rico Industrial, Tourist, Medical, & Environmental Central Facilities (University of Sacred Heart), 5%, 10/01/42 | 55,000 | 41,444 | ||||||
University of North Carolina, Chapel Hill, 5%, 12/01/31 | 3,250,000 | 3,586,407 | ||||||
University of North Carolina, Chapel Hill, “A”, ASSD GTY, 5%, 4/01/34 | 200,000 | 213,260 | ||||||
University of North Carolina, Charlotte, Rev., 5%, 4/01/43 | 1,715,000 | 1,846,352 | ||||||
University of North Carolina, Greensboro, 5%, 4/01/26 | 3,000,000 | 3,372,000 | ||||||
University of North Carolina, Raleigh, Rev., “A”, 5%, 10/01/29 | 5,000,000 | 5,754,000 | ||||||
University of North Carolina, Systems Pool Rev. (General Trust Indenture), “C”, 5.5%, 10/01/34 | 1,890,000 | 2,058,720 | ||||||
University of North Carolina, Systems Pool Rev., “B”, 5.125%, 10/01/34 | 2,000,000 | 2,133,360 | ||||||
University of North Carolina, Systems Pool Rev., “B-1”, 5.25%, 4/01/24 | 1,615,000 | 1,838,645 | ||||||
University of North Carolina, Systems Pool Rev., “B-1”, 5.25%, 4/01/25 | 1,705,000 | 1,933,044 | ||||||
University of North Carolina, Wilmington, COP (Student Housing Project), FGIC, 5%, 6/01/28 | 1,825,000 | 1,898,036 | ||||||
Winston-Salem State University, NC, General Rev., 5%, 4/01/33 | 1,000,000 | 1,067,850 | ||||||
$ | 48,532,884 | |||||||
Utilities - Cogeneration - 0.3% | ||||||||
California Pollution Control Financing Authority, Water Furnishing Rev. (Poseidon Resources Desalination Project), 5%, 11/21/45 | $ | 1,250,000 | $ | 1,181,713 | ||||
Utilities - Municipal Owned - 7.9% | ||||||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/20 | $ | 1,000,000 | $ | 1,131,080 | ||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/21 | 1,000,000 | 1,128,330 | ||||||
Long Island, NY, Power Authority, Electric Systems Rev., “A”, 6%, 5/01/33 | 520,000 | 586,945 |
35
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Utilities - Municipal Owned - continued | ||||||||
North Carolina Eastern Municipal Power Agency, AMBAC, 6%, 1/01/18 | $ | 14,245,000 | $ | 16,632,604 | ||||
North Carolina Municipal Power Agency, Catawba Electric Rev., “A”, 5%, 1/01/30 | 2,500,000 | 2,709,100 | ||||||
Raleigh, NC, “A”, 5%, 9/01/20 | 4,000,000 | 4,731,840 | ||||||
$ | 26,919,899 | |||||||
Utilities - Other - 1.7% | ||||||||
California M-S-R Energy Authority Gas Rev., “A”, 6.5%, 11/01/39 | $ | 1,695,000 | $ | 2,131,446 | ||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/19 | 1,055,000 | 1,185,609 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/26 | 1,290,000 | 1,437,124 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “C”, 5%, 2/01/21 | 805,000 | 894,774 | ||||||
Texas Gas Acquisition & Supply Corp III., Gas Supply Rev., 5%, 12/15/31 | 255,000 | 259,118 | ||||||
$ | 5,908,071 | |||||||
Water & Sewer Utility Revenue - 9.2% | ||||||||
Asheville, NC, Water & Sewer Systems Rev., NATL, 5%, 8/01/32 | $ | 1,000,000 | $ | 1,054,410 | ||||
Cape Fear Public Utility Authority, Water & Sewer System Rev., 5%, 8/01/35 | 3,000,000 | 3,203,970 | ||||||
Cape Fear Public Utility Authority, Water & Sewer System Rev., 5%, 8/01/36 | 4,410,000 | 4,742,558 | ||||||
Charlotte, NC, Storm Water Fee Rev., 5%, 6/01/34 | 3,675,000 | 3,691,244 | ||||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 5.25%, 7/01/24 | 1,000,000 | 746,000 | ||||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 5.125%, 7/01/37 | 350,000 | 237,356 | ||||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 6%, 7/01/44 | 1,090,000 | 805,183 |
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - continued | ||||||||
Durham County, NC, Enterprise Systems Rev., 5%, 6/01/29 | $ | 1,590,000 | $ | 1,807,766 | ||||
Fayetteville, NC, Public Works Commission Rev., “B”, 5%, 3/01/35 | 1,750,000 | 1,913,695 | ||||||
Greenville, NC, Utilities Commission, Combined Enterprise System Rev., “A”, AGM, 5%, 11/01/33 | 2,400,000 | 2,573,040 | ||||||
High Point, NC, Combined Enterprise System Rev., AGM, 5%, 11/01/33 | 2,000,000 | 2,194,980 | ||||||
Oak Island, NC, Enterprise System Rev., ASSD GTY, 5.625%, 6/01/30 | 500,000 | 569,690 | ||||||
Oak Island, NC, Enterprise System Rev., ASSD GTY, 6%, 6/01/34 | 1,000,000 | 1,111,070 | ||||||
Oak Island, NC, Enterprise System Rev., ASSD GTY, 5.75%, 6/01/36 | 800,000 | 898,944 | ||||||
Raleigh, NC, Combined Enterprise Systems Rev., “A”, 5%, 3/01/29 | 3,145,000 | 3,593,917 | ||||||
Winston-Salem, NC, Water & Sewer Systems Rev., 5%, 6/01/34 | 2,000,000 | 2,194,880 | ||||||
$ | 31,338,703 | |||||||
Total Municipal Bonds (Identified Cost, $318,261,449) | $ | 334,119,664 | ||||||
Money Market Funds - 0.1% | ||||||||
MFS Institutional Money Market Portfolio, 0.09%, at Cost and Net Asset Value (v) | 435,865 | $ | 435,865 | |||||
Total Investments (Identified Cost, $318,697,314) | $ | 334,555,529 | ||||||
Other Assets, Less Liabilities - 1.6% | 5,557,037 | |||||||
Net Assets - 100.0% | $ | 340,112,566 |
See Portfolio Footnotes and Notes to Financial Statements
36
Table of Contents
PORTFOLIO OF INVESTMENTS
3/31/14
MFS PENNSYLVANIA MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
Municipal Bonds - 95.8% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 2.1% | ||||||||
Chicago, IL, O’Hare International Airport Rev., Third Lien, “A”, 5.625%, 1/01/35 | $ | 335,000 | $ | 366,459 | ||||
Philadelphia, PA, Airport Rev., “A”, AGM, 5%, 6/15/40 | 2,000,000 | 2,083,100 | ||||||
$ | 2,449,559 | |||||||
General Obligations - General Purpose - 9.5% | ||||||||
Chester County, PA, 5%, 11/15/32 | $ | 1,000,000 | $ | 1,123,370 | ||||
Commonwealth of Pennsylvania, 5%, 4/15/15 | 1,515,000 | 1,590,356 | ||||||
Commonwealth of Pennsylvania, 5%, 4/15/19 | 1,000,000 | 1,169,590 | ||||||
Commonwealth of Pennsylvania, 5%, 6/01/20 | 1,500,000 | 1,767,210 | ||||||
Commonwealth of Pennsylvania, 5%, 11/15/21 | 500,000 | 592,280 | ||||||
Commonwealth of Pennsylvania, 5%, 7/01/22 | 500,000 | 591,365 | ||||||
Commonwealth of Puerto Rico, “A”, ETM, FGIC, 5.5%, 7/01/15 (c) | 1,860,000 | 1,981,979 | ||||||
Guam Government, “A”, 6.75%, 11/15/29 | 75,000 | 79,435 | ||||||
Guam Government, “A”, 7%, 11/15/39 | 90,000 | 95,327 | ||||||
Luzerne County, PA, AGM, 6.75%, 11/01/23 | 500,000 | 559,105 | ||||||
Philadelphia, PA, Redevelopment Authority Rev., BAM, 5%, 4/15/24 | 1,000,000 | 1,110,150 | ||||||
State of Illinois, 5.5%, 7/01/33 | 125,000 | 135,145 | ||||||
State of Illinois, 5.5%, 7/01/38 | 380,000 | 407,561 | ||||||
$ | 11,202,873 | |||||||
General Obligations - Schools - 12.6% | ||||||||
Allegheny Valley, PA, School District, “A”, NATL, 5%, 11/01/28 | $ | 1,000,000 | $ | 1,010,710 | ||||
Carlisle, PA, School District, 5%, 9/01/26 | 1,000,000 | 1,124,160 | ||||||
Central Dauphin, PA, School District, 4%, 12/01/20 | 1,000,000 | 1,117,510 | ||||||
Conneaut, PA, School District, Capital Appreciation, “B”, AGM, 0%, 11/01/31 | 1,150,000 | 531,450 | ||||||
Conneaut, PA, School District, Capital Appreciation, “B”, AGM, 0%, 11/01/33 | 760,000 | 313,181 | ||||||
Daniel Boone, PA, School District, 5%, 8/15/32 | 500,000 | 529,065 | ||||||
Deer Lakes, PA, School District, ASSD GTY, 5.375%, 4/01/34 | 1,275,000 | 1,397,132 | ||||||
Governor Mifflin, PA, School District, “A”, 4%, 4/01/24 | 1,890,000 | 2,005,838 | ||||||
Northampton County, PA, Area School District, “A”, 5%, 10/01/33 | 1,000,000 | 1,096,310 | ||||||
Reading, PA, School District, “A”, 5%, 4/01/18 | 1,000,000 | 1,090,500 | ||||||
Reading, PA, School District, “A”, 5%, 4/01/20 | 665,000 | 721,884 | ||||||
Scranton, PA, School District, “A”, AGM, 5%, 7/15/27 | 1,340,000 | 1,401,385 | ||||||
West Chester, PA, Area School District, “A”, 5%, 5/15/22 | 640,000 | 766,214 | ||||||
West Chester, PA, Area School District, “A”, 5%, 5/15/24 | 500,000 | 601,690 |
Issuer | Shares/Par | Value ($) | ||||||
General Obligations - Schools - continued | ||||||||
Whitehall-Coplay, PA, School District, “A”, AGM, 5.375%, 11/15/34 | $ | 1,000,000 | $ | 1,073,530 | ||||
$ | 14,780,559 | |||||||
Healthcare Revenue - Hospitals - 19.7% | ||||||||
Allegheny County, PA, Hospital Development Authority Rev. (University of Pittsburgh Medical Center), 5%, 9/01/18 | $ | 500,000 | $ | 575,110 | ||||
Allegheny County, PA, Hospital Development Authority Rev. (University of Pittsburgh Medical Center), “A”, 5.375%, 8/15/29 | 1,000,000 | 1,097,640 | ||||||
Berks County, PA, Municipal Authority Rev. (Reading Hospital & Medical Center), “A”, 5%, 11/01/40 | 1,500,000 | 1,560,570 | ||||||
Blair County, PA, Hospital Authority Rev. (Altoona Regional Health System), 6%, 11/15/39 | 750,000 | 792,015 | ||||||
Butler County, PA, Hospital Development Authority Rev. (Butler Health System, Inc.), 7.25%, 7/01/39 | 500,000 | 579,995 | ||||||
Centre County, PA, Hospital Authority Rev. (Mount Nittany Medical Center), ASSD GTY, 5.875%, 11/15/14 (c) | 500,000 | 517,635 | ||||||
Centre County, PA, Hospital Authority Rev. (Mount Nittany Medical Center), 6.25%, 11/15/41 | 500,000 | 556,890 | ||||||
Chester County, PA, Health & Educational Facilities Authority Rev. (Chester County Junior High School), “A”, 5%, 5/15/40 | 1,000,000 | 1,036,160 | ||||||
Dauphin County, PA, General Authority Health System Rev. (Pinnacle Health System), “A”, 5.75%, 6/01/20 | 750,000 | 839,153 | ||||||
DeKalb County, GA, Hospital Authority Rev. (DeKalb Medical Center, Inc.), 6.125%, 9/01/40 | 305,000 | 309,087 | ||||||
Escambia County, FL, Health Facilities Authority (Baptist Hospital, Inc.), “A”, 6%, 8/15/36 | 705,000 | 746,926 | ||||||
Geisinger Authority, PA, Health System Rev., “A”, 5.125%, 6/01/34 | 1,000,000 | 1,071,680 | ||||||
Illinois Finance Authority Rev. (Provena Health), “A”, 6%, 5/01/28 | 500,000 | 536,180 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.25%, 7/01/31 | 165,000 | 180,007 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.375%, 7/01/41 | 445,000 | 485,433 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 5.75%, 6/01/25 | 335,000 | 364,235 |
37
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6.375%, 6/01/40 | $ | 390,000 | $ | 417,464 | ||||
Lebanon County, PA, Health Facilities Authority Rev. (Good Samaritan Hospital), 5%, 11/15/18 | 200,000 | 200,054 | ||||||
Lebanon County, PA, Health Facilities Authority Rev. (Good Samaritan Hospital), 6%, 11/15/35 | 450,000 | 447,953 | ||||||
Lehigh County, PA, General Purpose Authority (Good Shepherd Group), 4%, 11/01/36 | 1,000,000 | 881,490 | ||||||
Lehigh County, PA, General Purpose Authority (Good Shepherd Group), “A”, 5.625%, 11/01/14 (c) | 350,000 | 360,959 | ||||||
Lehigh County, PA, General Purpose Authority Hospital Rev. (Lehigh Valley Hospital), NATL, 7%, 7/01/16 | 125,000 | 131,953 | ||||||
Lycoming County, PA, Health Authority Rev. (Susquehanna Health System), “A”, 5.75%, 7/01/39 | 750,000 | 775,950 | ||||||
Miami-Dade County, FL, Health Facilities Authority Hospital Rev. (Variety Children’s Hospital), “A”, 6%, 8/01/30 | 105,000 | 117,004 | ||||||
Monroe County, PA, Hospital Authority Rev. (Pocono Medical Center), 5%, 1/01/27 | 250,000 | 256,815 | ||||||
Monroe County, PA, Hospital Authority Rev. (Pocono Medical Center), 5.125%, 1/01/37 | 250,000 | 253,310 | ||||||
New Hampshire Business Finance Authority Rev. (Huggins Hospital), 6.875%, 10/01/39 | 20,000 | 21,124 | ||||||
Northampton County, PA, General Purpose Authority Hospital Rev. (St. Luke’s Hospital), “A”, 5.5%, 8/15/40 | 500,000 | 508,490 | ||||||
Pennsylvania Higher Educational Facilities Authority Rev. (University of Pittsburg Medical Center), “E”, 5%, 5/15/19 | 1,730,000 | 1,990,279 | ||||||
Philadelphia, PA, Hospitals & Higher Education Facilities Authority Rev. (Temple University Health System), 5.5%, 7/01/26 | 500,000 | 480,160 | ||||||
Philadelphia, PA, Hospitals & Higher Education Facilities Authority Rev. (Temple University Health System), “A”, 5.625%, 7/01/42 | 300,000 | 269,589 | ||||||
Philadelphia, PA, Hospitals & Higher Education Facilities Authority Rev. (The Children’s Hospital of Philadelphia), “C”, 5%, 7/01/25 | 1,000,000 | 1,130,010 | ||||||
South Central, PA, General Authority Rev. (Wellspan Health Properties, Inc.), “A”, 6%, 6/01/25 | 750,000 | 845,190 | ||||||
St. Mary Hospital Authority, PA, Health System Rev. (Catholic Health East), “A”, 5%, 11/15/33 | 500,000 | 521,115 | ||||||
St. Petersburg, FL, Health Facilities Authority Rev., 6.5%, 11/15/39 | 155,000 | 174,976 | ||||||
West Shore, PA, Hospital Authority Rev. (Holy Spirit Hospital), “B”, 5.625%, 1/01/32 | 500,000 | 528,035 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Westmoreland County, PA, Industrial Development Authority Rev. (Excela Health Project), 5.125%, 7/01/30 | $ | 1,000,000 | $ | 1,027,050 | ||||
Wisconsin Health & Educational Facilities Authority Rev. (Wheaton Franciscan Healthcare), 5.25%, 8/15/31 | 485,000 | 495,786 | ||||||
$ | 23,083,472 | |||||||
Healthcare Revenue - Long Term Care - 2.2% | ||||||||
Bucks County, PA, Industrial Development Authority Rev. (Lutheran Community Telford Center), 5.75%, 1/01/37 | $ | 300,000 | $ | 287,856 | ||||
Chartiers Valley, PA, Industrial & Commercial Development Authority (Asbury Health Center Project), 5.75%, 12/01/22 | 250,000 | 249,810 | ||||||
Cumberland County, PA, Municipal Authority Rev. (Asbury Atlantic, Inc.), 6%, 1/01/40 | 500,000 | 520,855 | ||||||
Cumberland County, PA, Municipal Authority Rev. (Asbury Atlantic, Inc.), 5.25%, 1/01/41 | 500,000 | 452,155 | ||||||
Cumberland County, PA, Municipal Authority Rev. (Diakon Lutheran Social Ministries), 6.375%, 1/01/39 | 500,000 | 535,200 | ||||||
Montgomery County, PA, Industrial Development Authority Retirement Community Rev. (Lanier Village Estates, Inc.), “A-1”, 6.25%, 11/15/29 | 250,000 | 279,098 | ||||||
Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7%, 11/01/30 | 65,000 | 72,285 | ||||||
Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7.125%, 11/01/40 | 105,000 | 115,520 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), “A”, 7.25%, 9/15/29 | 10,000 | 10,972 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), “A”, 7.625%, 9/15/39 | 70,000 | 76,990 | ||||||
$ | 2,600,741 | |||||||
Human Services - 0.1% | ||||||||
Montgomery County, PA, Industrial Development Authority (Wordsworth Academy), 8%, 9/01/24 | $ | 110,000 | $ | 110,041 | ||||
Industrial Revenue - Other - 1.0% | ||||||||
Pennsylvania Economic Development Financing Authority, Solid Waste Disposal Rev. (Procter & Gamble), 5.375%, 3/01/31 | $ | 1,000,000 | $ | 1,157,050 | ||||
Miscellaneous Revenue - Other - 0.3% | ||||||||
Indiana Finance Authority Rev., (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/40 | $ | 145,000 | $ | 144,778 | ||||
Indiana Finance Authority Rev., (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/44 | 225,000 | 221,875 | ||||||
$ | 366,653 |
38
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Sales & Excise Tax Revenue - 0.8% | ||||||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6.5%, 1/15/30 | $ | 580,000 | $ | 639,491 | ||||
Guam Government Business Privilege Tax Rev., “C”, 5%, 11/15/16 | 120,000 | 131,711 | ||||||
Guam Government Business Privilege Tax Rev., “C”, 5%, 11/15/17 | 135,000 | 150,912 | ||||||
$ | 922,114 | |||||||
Single Family Housing Revenue - Local - 0.5% | ||||||||
Allegheny County, PA, Residential Financing Authority, Single Family Mortgage Rev., “VV”, GNMA, 4.95%, 11/01/37 | $ | 540,000 | $ | 543,175 | ||||
Single Family Housing - State - 3.7% | ||||||||
Pennsylvania Housing Finance Agency, Single Family Mortgage Rev., 4.75%, 10/01/28 | $ | 1,000,000 | $ | 1,039,670 | ||||
Pennsylvania Housing Finance Agency, Single Family Mortgage Rev., “91-A”, 4.875%, 4/01/26 | 300,000 | 301,284 | ||||||
Pennsylvania Housing Finance Agency, Single Family Mortgage Rev., “92-A”, 4.75%, 4/01/31 | 920,000 | 929,706 | ||||||
Pennsylvania Housing Finance Agency, Single Family Mortgage Rev., “93-A”, 5.75%, 4/01/37 | 50,000 | 50,471 | ||||||
Pennsylvania Housing Finance Agency, Single Family Mortgage Rev., “95-A”, 4.875%, 10/01/31 | 985,000 | 987,531 | ||||||
Pennsylvania Housing Finance Agency, Single Family Mortgage Rev., “97-A”, 4.5%, 10/01/22 | 1,000,000 | 1,023,450 | ||||||
$ | 4,332,112 | |||||||
Solid Waste Revenue - 0.7% | ||||||||
Delaware County, PA, Industrial Development Authority, Resource Recovery Facilities Rev. (American Ref-Fuel Co.), “A”, 6.2%, 7/01/19 | $ | 290,000 | $ | 290,165 | ||||
Pennsylvania Economic Development Financing Authority, Sewer Sludge Disposal Rev. (Philadelphia Biosolids Facility), 6.25%, 1/01/32 | 500,000 | 505,940 | ||||||
$ | 796,105 | |||||||
State & Local Agencies - 3.3% | ||||||||
Delaware Valley, PA, Regional Finance Authority, AMBAC, 5.5%, 8/01/18 | $ | 715,000 | $ | 824,652 | ||||
Delaware Valley, PA, Regional Finance Authority, “C”, FRN, 0.908%, 6/01/37 | 730,000 | 497,240 | ||||||
Delaware Valley, PA, Regional Finance Authority, RITES, FRN, AMBAC, 10.29%, 8/01/18 (p) | 50,000 | 65,336 | ||||||
New York Tobacco Settlement Financing Corp., Asset-Backed Rev., “B”, 5%, 6/01/21 | 335,000 | 361,773 | ||||||
Pennsylvania Industrial Development Authority, Economic Development Authority Rev., 5.5%, 7/01/18 (c) | 60,000 | 70,945 |
Issuer | Shares/Par | Value ($) | ||||||
State & Local Agencies - continued | ||||||||
Pennsylvania Industrial Development Authority, Economic Development Authority Rev., 5.5%, 7/01/23 | $ | 440,000 | $ | 487,397 | ||||
Philadelphia, PA, Municipal Authority Rev., 6.5%, 4/01/34 | 500,000 | 556,585 | ||||||
State Public School Building Authority, PA, Jefferson County (Dubois Technical School), FGIC, 5%, 8/01/14 (c) | 1,000,000 | 1,015,890 | ||||||
$ | 3,879,818 | |||||||
Tax - Other - 1.0% | ||||||||
Allentown, PA, Neighborhood Improvement Zone Development Authority Tax Rev., “A”, 5%, 5/01/35 | $ | 750,000 | $ | 728,093 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/24 | 140,000 | 147,914 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/29 | 45,000 | 47,090 | ||||||
Virgin Islands Public Finance Authority Rev. (Diageo Project), “A”, 6.75%, 10/01/37 | 125,000 | 135,959 | ||||||
Virgin Islands Public Finance Authority Rev., “A”, 5.25%, 10/01/24 | 135,000 | 138,416 | ||||||
$ | 1,197,472 | |||||||
Tax Assessment - 0.2% | ||||||||
Washington County, PA, Redevelopment Authority (Victory Centre Project), “A”, 5.45%, 7/01/35 | $ | 230,000 | $ | 230,248 | ||||
Tobacco - 2.9% | ||||||||
Buckeye, OH, Tobacco Settlement Financing Authority, “A-2”, 5.875%, 6/01/47 | $ | 325,000 | $ | 261,664 | ||||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A-1”, 5.75%, 6/01/47 | 430,000 | 346,675 | ||||||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A-2”, 5.3%, 6/01/37 | 665,000 | 507,688 | ||||||
Illinois Railsplitter Tobacco Settlement Authority, 6%, 6/01/28 | 755,000 | 851,179 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.5%, 6/01/23 | 310,000 | 298,037 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.75%, 6/01/34 | 165,000 | 124,616 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 5%, 6/01/41 | 705,000 | 530,470 | ||||||
New Jersey Tobacco Settlement Financing Corp., Capital Appreciation, “1-B”, 0%, 6/01/41 | 1,630,000 | 392,928 | ||||||
New Jersey Tobacco Settlement Financing Corp., Capital Appreciation, “1-C”, 0%, 6/01/41 | 20,000 | 4,746 | ||||||
Virgin Islands Tobacco Settlement Financing Corp., 5%, 5/15/21 | 85,000 | 84,999 | ||||||
$ | 3,403,002 |
39
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Toll Roads - 0.2% | ||||||||
Texas Private Activity Surface Transportation Corp. Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 7%, 12/31/38 | $ | 140,000 | $ | 158,782 | ||||
Texas Private Activity Surface Transportation Corp. Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 6.75%, 6/30/43 | 110,000 | 121,865 | ||||||
$ | 280,647 | |||||||
Transportation - Special Tax - 1.6% | ||||||||
Commonwealth of Virginia, Transportation Board Rev., Capital Projects, 5%, 5/15/20 | $ | 655,000 | $ | 772,959 | ||||
Pennsylvania Turnpike Commission (Motor License Fund), “B”, 5%, 12/01/30 | 1,000,000 | 1,079,060 | ||||||
$ | 1,852,019 | |||||||
Universities - Colleges - 16.9% | ||||||||
Allegheny County, PA, Higher Education Building Authority Rev. (Duquesne University), 5%, 3/01/33 | $ | 1,250,000 | $ | 1,298,475 | ||||
Allegheny County, PA, Higher Education Building Authority Rev. (Duquesne University), “A”, SYNCORA, 5%, 3/01/24 | 1,000,000 | 1,069,410 | ||||||
Allegheny County, PA, Higher Education Building Authority Rev. (Robert Morris University), “A”, 6%, 10/15/38 | 250,000 | 253,053 | ||||||
Allegheny County, PA, Higher Education Building Authority Rev. (Robert Morris University), “A”, 5.75%, 10/15/40 | 500,000 | 502,960 | ||||||
Crawford County, PA, Industrial Development Authority, College Rev., “A”, 6%, 11/01/31 | 250,000 | 269,428 | ||||||
Cumberland County, PA, Municipal Authority College Rev. (Dickinson College), 5%, 11/01/26 | 1,000,000 | 1,074,610 | ||||||
Cumberland County, PA, Municipal Authority College Rev. (Dickinson College), “HH1”, 5%, 11/01/39 | 300,000 | 312,117 | ||||||
Delaware County, PA, Authority University Rev. (Neumann University), 5.25%, 10/01/31 | 565,000 | 582,216 | ||||||
Delaware County, PA, Authority University Rev. (Neumann University), 6.125%, 10/01/34 | 750,000 | 785,430 | ||||||
Delaware County, PA, Authority University Rev. (Villanova University), 5%, 12/01/19 | 290,000 | 333,825 | ||||||
Delaware County, PA, Authority University Rev. (Villanova University), 5.25%, 12/01/31 | 350,000 | 377,832 | ||||||
Erie, PA, Higher Education Building Authority Rev. (Gannon University), “A”, 5.5%, 5/01/40 | 1,000,000 | 1,014,900 | ||||||
Illinois Finance Authority Rev. (Roosevelt University Project), 6.25%, 4/01/29 | 1,050,000 | 1,082,897 | ||||||
Lancaster, PA, Higher Education Authority College Rev. (Franklin & Marshall College), 5%, 4/15/37 | 500,000 | 521,855 | ||||||
New Jersey Educational Facilities Authority Rev. (University of Medicine & Dentistry), “B”, ETM, 6%, 12/01/17 (c) | 505,000 | 584,780 |
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
Northampton County, PA, General Purpose Authority Rev. (Lafayette College), 5%, 11/01/34 | $ | 250,000 | $ | 263,780 | ||||
Northampton County, PA, General Purpose Authority Rev. (Lehigh University), 5.5%, 11/15/33 | 500,000 | 561,135 | ||||||
Pennsylvania Higher Educational Facilities Authority Rev. (Drexel University), NATL, 5%, 5/01/37 | 630,000 | 649,303 | ||||||
Pennsylvania Higher Educational Facilities Authority Rev. (La Salle University), “A”, 5.25%, 5/01/27 | 500,000 | 520,965 | ||||||
Pennsylvania Higher Educational Facilities Authority Rev. (La Salle University), “A”, 5%, 5/01/37 | 500,000 | 502,580 | ||||||
Pennsylvania Higher Educational Facilities Authority Rev. (Philadelphia University), 5.5%, 6/01/20 | 500,000 | 539,025 | ||||||
Pennsylvania Higher Educational Facilities Authority Rev. (Saint Francis University Project), “JJ2”, 6.25%, 11/01/41 | 500,000 | 532,190 | ||||||
Pennsylvania Higher Educational Facilities Authority Rev. (University of Pennsylvania Health System), “A”, 5%, 8/15/24 | 1,945,000 | 2,209,306 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical, & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.375%, 4/01/42 | 95,000 | 75,193 | ||||||
Snyder County, PA, Higher Education Authority Rev. (Susquehanna University), 5%, 1/01/38 | 1,000,000 | 1,026,830 | ||||||
Washington County, PA, Industrial Development Authority College Rev. (Washington Jefferson College), 5.25%, 11/01/30 | 1,000,000 | 1,069,600 | ||||||
Wilkes-Barre, PA, Finance Authority Rev. (The University of Scranton), 5%, 11/01/35 | 1,000,000 | 1,040,860 | ||||||
Wilkes-Barre, PA, Finance Authority Rev. (Wilkes University), 5%, 3/01/37 | 750,000 | 743,858 | ||||||
$ | 19,798,413 | |||||||
Universities - Dormitories - 2.7% | ||||||||
Chester County, PA, Industrial Development Authority Student Housing Rev. (University Student Housing LLC Project), 5%, 8/01/45 | $ | 1,000,000 | $ | 929,850 | ||||
Pennsylvania Higher Educational Facilities Authority Rev. (Edinboro University Foundation), 6%, 7/01/43 | 1,000,000 | 1,004,530 | ||||||
Pennsylvania Higher Educational Facilities Authority Rev. (Indiana University Foundation), “A”, 5%, 7/01/41 | 750,000 | 732,488 | ||||||
Pennsylvania Higher Educational Facilities Authority Rev. (Shippensburg University Student Services), 6.25%, 10/01/43 | 500,000 | 536,730 | ||||||
$ | 3,203,598 |
40
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Universities - Secondary Schools - 2.5% | ||||||||
La Vernia, TX, Higher Education Finance Corp. Rev. (Lifeschool of Dallas), “A”, 7.5%, 8/15/41 | $ | 345,000 | $ | 388,601 | ||||
Philadelphia, PA, Authority for Industrial Development Rev. (Discovery Charter School Project), 6.25%, 4/01/37 | 500,000 | 499,390 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (Global Leadership Academy Charter School), 6.375%, 11/15/40 | 500,000 | 509,530 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (MaST Charter School), 6%, 8/01/35 | 665,000 | 695,869 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (Philadelphia Performing Arts Charter School Project), 6.75%, 6/15/43 | 400,000 | 405,392 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (Tacony Academy Charter School Project), “A-1”, 7%, 6/15/43 | 400,000 | 399,944 | ||||||
$ | 2,898,726 | |||||||
Utilities - Investor Owned - 2.3% | ||||||||
Clarion County, PA, Industrial Development Authority, Water Facility Rev. (Pennsylvania American Water Co.), 5.5%, 12/01/39 | $ | 1,000,000 | $ | 1,052,990 | ||||
Michigan Strategic Fund Ltd. Obligation Rev. (Detroit Edison Co.), 5.625%, 7/01/20 | 415,000 | 491,904 | ||||||
Michigan Strategic Fund Ltd. Obligation Rev. (Detroit Edison Co.), 5.5%, 8/01/29 (b) | 110,000 | 120,691 | ||||||
Pennsylvania Economic Development Financing Authority, Water Facilities Rev. (Aqua Pennsylvania, Inc.), “A”, 5%, 10/01/39 | 1,000,000 | 1,054,940 | ||||||
$ | 2,720,525 | |||||||
Utilities - Municipal Owned - 1.2% | ||||||||
Guam Power Authority Rev., “A”, 5.5%, 10/01/30 | $ | 315,000 | $ | 332,568 | ||||
Philadelphia, PA, Gas Works Rev., 5.25%, 8/01/40 | 1,000,000 | 1,081,740 | ||||||
$ | 1,414,308 | |||||||
Utilities - Other - 1.8% | ||||||||
California M-S-R Energy Authority Gas Rev., “A”, 6.5%, 11/01/39 | $ | 545,000 | $ | 685,332 | ||||
Public Authority for Colorado Energy Natural Gas Purchase Rev., 6.5%, 11/15/38 | 280,000 | 353,522 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/19 | 420,000 | 471,996 |
Issuer | Shares/Par | Value ($) | ||||||
Utilities - Other - continued | ||||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/22 | $ | 235,000 | $ | 262,556 | ||||
Tennessee Energy Acquisition Corp., Gas Rev., “C”, 5%, 2/01/21 | 255,000 | 283,438 | ||||||
Texas Gas Acquisition & Supply Corp III., Gas Supply Rev., 5%, 12/15/31 | 75,000 | 76,211 | ||||||
$ | 2,133,055 | |||||||
Water & Sewer Utility Revenue - 6.0% | ||||||||
Allegheny County, PA, Sanitation Authority Sewer Rev., AGM, 5%, 6/01/40 | $ | 1,000,000 | $ | 1,048,970 | ||||
Bucks County, PA, Water & Sewer Authority, Water System Rev., 5%, 12/01/33 | 1,000,000 | 1,077,690 | ||||||
Clairton, PA, Municipal Authority Sewer Rev., “B”, 5%, 12/01/42 | 1,000,000 | 992,400 | ||||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 5%, 7/01/33 | 960,000 | 643,555 | ||||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 5.125%, 7/01/37 | 120,000 | 81,379 | ||||||
Guam Government Waterworks Authority, Water & Wastewater System Rev., 5.625%, 7/01/40 | 260,000 | 269,305 | ||||||
Guam Water & Wastewater System Rev., 5.25%, 7/01/20 | 45,000 | 50,155 | ||||||
Guam Water & Wastewater System Rev., 5.25%, 7/01/21 | 120,000 | 132,844 | ||||||
Harrisburg, PA, Water Authority Rev., 5.25%, 7/15/31 | 1,000,000 | 917,890 | ||||||
Philadelphia, PA, Water & Wastewater Rev., “A”, 5.25%, 1/01/32 | 1,000,000 | 1,071,320 | ||||||
St. Mary’s, PA, Water Authority Rev., 5.15%, 2/01/30 | 750,000 | 798,008 | ||||||
$ | 7,083,516 | |||||||
Total Municipal Bonds (Identified Cost, $108,483,468) | $ | 112,439,801 | ||||||
Money Market Funds - 2.7% | ||||||||
MFS Institutional Money Market Portfolio, 0.09%, at Cost and Net Asset Value (v) | 3,151,391 | $ | 3,151,391 | |||||
Total Investments (Identified Cost, $111,634,859) | $ | 115,591,192 | ||||||
Other Assets, Less Liabilities - 1.5% | 1,794,459 | |||||||
Net Assets - 100.0% | $ | 117,385,651 |
See Portfolio Footnotes and Notes to Financial Statements
41
Table of Contents
PORTFOLIO OF INVESTMENTS
3/31/14
MFS SOUTH CAROLINA MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
Municipal Bonds - 96.4% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 3.6% | ||||||||
Charleston County, SC, Airport District Rev., “A”, 5.25%, 7/01/21 | $ | 2,000,000 | $ | 2,239,796 | ||||
Horry County, SC, Airport Rev. (Myrtle Beach International Airport), “A”, 5%, 7/01/40 | 2,250,000 | 2,310,503 | ||||||
Richland Lexington, SC, Airport Rev. (Columbia Airport), AGM, 5.125%, 1/01/25 | 1,500,000 | 1,525,890 | ||||||
$ | 6,076,189 | |||||||
General Obligations - General Purpose - 7.3% | ||||||||
Aiken County, SC, County Administration Building Project, 5%, 3/01/25 | $ | 910,000 | $ | 1,065,947 | ||||
Charleston County, SC, Capital Improvement Rev., 5%, 11/01/19 | 455,000 | 536,167 | ||||||
Charleston County, SC, General Obligation, Transportation Sales Tax, 5%, 11/01/20 | 2,000,000 | 2,374,840 | ||||||
Clinton, SC, Laurens County School District, ASSD GTY, 6.125%, 3/01/33 | 1,000,000 | 1,157,510 | ||||||
Guam Government, “A”, 5.25%, 11/15/37 | 280,000 | 254,299 | ||||||
Guam Government, “A”, 7%, 11/15/39 | 50,000 | 52,960 | ||||||
Richland County, SC, General Obligation, “B”, 5%, 3/01/23 | 3,000,000 | 3,601,140 | ||||||
South Carolina, State Highway, “A”, 5%, 6/01/18 | 3,000,000 | 3,478,530 | ||||||
$ | 12,521,393 | |||||||
General Obligations - Schools - 10.0% | ||||||||
Anderson County, SC, School District, “A”, 5%, 3/01/21 | $ | 1,065,000 | $ | 1,260,449 | ||||
Anderson County, SC, School District, “A”, 5%, 3/01/26 | 1,240,000 | 1,500,660 | ||||||
Chesterfield County, SC, School District, 5%, 3/01/25 | 3,000,000 | 3,437,880 | ||||||
Lexington County, SC, School District No. 1, “A”, 5%, 3/01/23 | 1,030,000 | 1,226,380 | ||||||
Oconee County, GA, General Obligation, “A”, 5%, 3/01/19 | 465,000 | 544,176 | ||||||
Oconee County, GA, General Obligation, “A”, 5%, 3/01/22 | 805,000 | 959,447 | ||||||
Orangeburg County, SC, Consolidated School District, 4%, 4/01/19 | 1,315,000 | 1,456,573 | ||||||
Richland County, SC, School District No. 1, “A”, 5%, 3/01/25 | 2,000,000 | 2,314,320 | ||||||
Richland County, SC, School District No. 1, “A”, 5%, 3/01/29 | 3,000,000 | 3,374,760 | ||||||
York County, SC, Fort Mill School District, “A”, 3%, 3/01/32 | 1,315,000 | 1,139,500 | ||||||
$ | 17,214,145 | |||||||
Healthcare Revenue - Hospitals - 17.4% | ||||||||
DeKalb County, GA, Hospital Authority Rev. (DeKalb Medical Center, Inc.), 6.125%, 9/01/40 | $ | 400,000 | $ | 405,360 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Escambia County, FL, Health Facilities Authority (Baptist Hospital, Inc.), “A”, 6%, 8/15/36 | $ | 925,000 | $ | 980,010 | ||||
Florence County, SC, Hospital Rev. (McLeod Regional Medical Center), “A”, AGM, 5.25%, 11/01/34 | 1,050,000 | 1,063,829 | ||||||
Florence County, SC, Hospital Rev. (McLeod Regional Medical Center), “A”, 5%, 11/01/37 | 3,000,000 | 3,122,580 | ||||||
Greenville, SC, Hospital Systems, Hospital Facilities Rev., 6%, 5/01/20 | 3,400,000 | 3,951,854 | ||||||
Greenwood County, SC, Hospital Rev. (Self Regional Healthcare), 5.375%, 10/01/39 | 1,000,000 | 1,048,620 | ||||||
Greenwood County, SC, Hospital Rev. (Self Regional Healthcare), “B”, 5%, 10/01/31 | 1,950,000 | 2,076,809 | ||||||
Illinois Finance Authority Rev. (Provena Health), “A”, 6%, 5/01/28 | 550,000 | 589,798 | ||||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 7%, 8/15/44 | 480,000 | 525,605 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.25%, 7/01/31 | 155,000 | 169,097 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.375%, 7/01/41 | 605,000 | 659,970 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6.375%, 6/01/40 | 605,000 | 647,604 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6.5%, 3/01/45 | 865,000 | 929,209 | ||||||
Lexington County, SC, Health Services District, Inc., Hospital Rev., 5.5%, 5/01/14 (c) | 250,000 | 251,040 | ||||||
Lexington County, SC, Health Services District, Inc., Hospital Rev., 5.5%, 5/01/14 (c) | 250,000 | 251,040 | ||||||
Lexington County, SC, Health Services District, Inc., Hospital Rev., 5%, 11/01/32 | 1,500,000 | 1,536,420 | ||||||
Lexington County, SC, Health Services District, Inc., Hospital Rev., Refunding & Improvement, 5%, 11/01/26 | 500,000 | 547,440 | ||||||
Louisville & Jefferson County, KY, Metropolitan Government Healthcare Systems Rev. (Norton Healthcare, Inc.), 5.25%, 10/01/36 | 465,000 | 469,645 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6%, 10/01/27 | 400,000 | 429,724 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6.125%, 10/01/39 | 445,000 | 465,968 | ||||||
Richmond, IN, Hospital Authority Rev. (Reid Hospital), “A”, 6.5%, 1/01/29 | 585,000 | 634,696 |
42
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Royal Oak, MI, Hospital Finance Authority Rev. (William Beaumont Hospital), 8.25%, 9/01/39 | $ | 915,000 | $ | 1,112,905 | ||||
South Carolina Jobs & Economic Development Authority, Hospital Facilities Rev. (Anmed Health), “B”, ASSD GTY, 5.5%, 2/01/38 | 1,500,000 | 1,600,515 | ||||||
South Carolina Jobs & Economic Development Authority, Hospital Facilities Rev. (Tuomey Health), CIFG, 5%, 11/01/30 | 375,000 | 246,870 | ||||||
South Carolina Jobs & Economic Development Authority, Hospital Rev. (Conway Hospital, Inc.), 5%, 7/01/37 | 1,250,000 | 1,283,550 | ||||||
South Carolina Jobs & Economic Development Authority, Hospital Rev. (Palmetto Health), 5.75%, 8/01/39 | 275,000 | 291,371 | ||||||
South Carolina Jobs & Economic Development Authority, Hospital Rev. (Palmetto Health), “A”, 5.25%, 8/01/30 | 1,000,000 | 1,043,390 | ||||||
Spartanburg County, SC, Regional Health Services District, “A”, 5%, 4/15/37 | 2,000,000 | 2,074,960 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 6.75%, 7/01/29 | 105,000 | 117,477 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 7%, 7/01/39 | 255,000 | 280,589 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (ProHealth Care, Inc. Obligated Group), 6.625%, 2/15/39 | 945,000 | 1,048,808 | ||||||
$ | 29,856,753 | |||||||
Healthcare Revenue - Long Term Care - 1.1% | ||||||||
South Carolina Jobs & Economic Development Authority Rev. (Woodlands at Furman), “A”, 6%, 11/15/47 | $ | 348,651 | $ | 217,039 | ||||
South Carolina Jobs & Economic Development Authority Rev. (Woodlands at Furman), Capital Appreciation, “B”, 0%, 11/15/47 | 152,775 | 1,755 | ||||||
South Carolina Jobs & Economic Development Authority, Health & Facilities Rev., First Mortgage (Wesley Commons), 5.125%, 10/01/26 | 400,000 | 381,704 | ||||||
South Carolina Jobs & Economic Development Authority, Health Facilities Rev. (Lutheran Homes of South Carolina, Inc.), 5%, 5/01/43 | 750,000 | 641,895 | ||||||
South Carolina Jobs & Economic Development Authority, Health Facilities Rev. (Lutheran Homes of South Carolina, Inc.), 5.125%, 5/01/48 | 250,000 | 214,868 | ||||||
South Carolina Jobs & Economic Development Authority, Residential Care Facilities Rev. (Episcopal Home), “A”, 6.375%, 5/15/32 | 400,000 | 401,064 | ||||||
$ | 1,858,325 | |||||||
Industrial Revenue - Chemicals - 0.6% | ||||||||
York County, SC, Industrial Rev. (Hoechst Celanese), 5.7%, 1/01/24 | $ | 1,000,000 | $ | 993,270 |
Issuer | Shares/Par | Value ($) | ||||||
Industrial Revenue - Other - 0.7% | ||||||||
Calhoun County, SC, Solid Waste Disposal Facilities Rev. (Carolina Eastman Co.), ETM, 6.75%, 5/01/17 (c) | $ | 1,000,000 | $ | 1,176,840 | ||||
Industrial Revenue - Paper - 1.2% | ||||||||
Richland County, SC, Environmental Improvement Rev. (International Paper), “A”, 3.875%, 4/01/23 | $ | 1,000,000 | $ | 1,001,120 | ||||
Richland County, SC, Environmental Improvement Rev. (International Paper), “A”, 6.1%, 4/01/23 | 1,000,000 | 1,000,160 | ||||||
Valparaiso, IN, Exempt Facilities Rev. (Pratt Paper LLC Project), 7%, 1/01/44 | 100,000 | 106,299 | ||||||
$ | 2,107,579 | |||||||
Miscellaneous Revenue - Other - 1.1% | ||||||||
South Carolina Jobs & Economic Development Authority Rev. (Myrtle Beach Convention), “B”, NATL, 5.125%, 4/01/18 | $ | 570,000 | $ | 570,604 | ||||
South Carolina Jobs & Economic Development Authority Rev. (Myrtle Beach Convention), “B”, NATL, 5.125%, 4/01/19 | 595,000 | 595,571 | ||||||
South Carolina Jobs & Economic Development Authority Rev. (Myrtle Beach Convention), “B”, NATL, 5.125%, 4/01/20 | 630,000 | 630,454 | ||||||
Summit County, OH, Port Authority Building Rev. (Flats East Development Recovery Zone Facility Bonds), 6.875%, 5/15/40 | 45,000 | 48,420 | ||||||
$ | 1,845,049 | |||||||
Multi-Family Housing Revenue - 0.6% | ||||||||
North Charleston, SC, Housing Authority Rev. (Horizon Village), “A”, GNMA, 5%, 2/20/38 | $ | 1,000,000 | $ | 1,010,670 | ||||
Port Revenue - 0.2% | ||||||||
South Carolina Ports Authority, Ports Rev., 5.25%, 7/01/40 | $ | 250,000 | $ | 265,823 | ||||
Sales & Excise Tax Revenue - 1.4% | ||||||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6%, 1/15/41 | $ | 725,000 | $ | 762,417 | ||||
Guam Government Business Privilege Tax Rev., “C”, 5%, 11/15/17 | 200,000 | 223,574 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., 5.25%, 8/01/57 | 735,000 | 591,873 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “C”, 5%, 8/01/40 | 1,090,000 | 893,299 | ||||||
$ | 2,471,163 | |||||||
Single Family Housing - State - 2.4% | ||||||||
California Housing Finance Agency Rev. (Home Mortgage), “I”, 4.7%, 8/01/26 | $ | 830,000 | $ | 830,672 | ||||
South Carolina Housing, Finance & Development Authority Mortgage Rev., “A-2”, AGM, 5.2%, 1/01/35 | 540,000 | 540,200 | ||||||
South Carolina Housing, Finance & Development Authority Rev., 5.55%, 7/01/38 | 630,000 | 639,078 |
43
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Single Family Housing - State - continued | ||||||||
South Carolina Housing, Finance & Development Authority Rev., “A-2”, AMBAC, 5.15%, 7/01/37 | $ | 850,000 | $ | 865,215 | ||||
South Carolina Housing, Finance & Development Authority Rev., “C-2”, AGM, 4.6%, 7/01/32 | 1,275,000 | 1,280,049 | ||||||
$ | 4,155,214 | |||||||
Solid Waste Revenue - 0.7% | ||||||||
Three Rivers, SC, Solid Waste Authority Rev., 5%, 10/01/28 | $ | 1,000,000 | $ | 1,144,820 | ||||
State & Local Agencies - 7.1% | ||||||||
Berkeley County, SC, General Obligation, “A”, 5%, 3/01/24 | $ | 1,000,000 | $ | 1,200,740 | ||||
Berkeley County, SC, School District Special Obligation, 5%, 12/01/20 | 800,000 | 917,240 | ||||||
Berkeley County, SC, School District Special Obligation, 5%, 12/01/21 | 1,000,000 | 1,144,780 | ||||||
Charleston County, SC, Special Source Rev., “C”, 5%, 12/01/21 | 1,000,000 | 1,168,730 | ||||||
Charleston, SC, Educational Excellence Finance Corp. Rev. (Charleston County School District Project), 5%, 12/01/31 | 3,720,000 | 3,890,339 | ||||||
Charleston, SC, Educational Excellence Finance Corp. Rev. (Charleston County School District Project), “B”, 5%, 12/01/30 | 2,000,000 | 2,211,200 | ||||||
Greenville County, SC, School District Installment Purchase Rev., AGM, 5%, 12/01/28 | 680,000 | 732,958 | ||||||
Los Angeles, CA, Municipal Improvement Corp. Lease Rev. (Real Property), “E”, 6%, 9/01/39 | 290,000 | 327,430 | ||||||
New York Tobacco Settlement Financing Corp., Asset-Backed Rev., “B”, 5%, 6/01/21 | 520,000 | 561,558 | ||||||
$ | 12,154,975 | |||||||
Tax - Other - 3.0% | ||||||||
Greenville County, SC, Hospitality Tax Rev., AGM, 5%, 4/01/22 | $ | 1,025,000 | $ | 1,153,474 | ||||
Greenville County, SC, Tourism Public Facilities Corp., Hospitality Tax, 4.75%, 4/01/29 | 750,000 | 794,055 | ||||||
Greenville County, SC, Tourism Public Facilities Corp., Hospitality Tax, 4.75%, 4/01/30 | 500,000 | 528,545 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/24 | 180,000 | 190,175 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/29 | 60,000 | 62,787 | ||||||
Virgin Islands Public Finance Authority Rev. (Diageo Project), “A”, 6.75%, 10/01/37 | 160,000 | 174,027 | ||||||
Virgin Islands Public Finance Authority Rev., “A”, 5.25%, 10/01/24 | 180,000 | 184,554 | ||||||
Virgin Islands Public Finance Authority Rev., “A”, 5%, 10/01/32 | 2,100,000 | 2,124,633 | ||||||
$ | 5,212,250 |
Issuer | Shares/Par | Value ($) | ||||||
Tax Assessment - 0.2% | ||||||||
Lancaster County, SC, Assessment Rev. (Sun City Carolina Lakes), 5.45%, 12/01/37 | $ | 415,000 | $ | 381,410 | ||||
Tobacco - 2.2% | ||||||||
Buckeye, OH, Tobacco Settlement Financing Authority, “A-2”, 5.875%, 6/01/47 | $ | 405,000 | $ | 326,074 | ||||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A-1”, 5.75%, 6/01/47 | 525,000 | 423,266 | ||||||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A-2”, 5.3%, 6/01/37 | 840,000 | 641,290 | ||||||
Illinois Railsplitter Tobacco Settlement Authority, 6%, 6/01/28 | 850,000 | 958,282 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.75%, 6/01/34 | 235,000 | 177,484 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 5%, 6/01/41 | 845,000 | 635,812 | ||||||
New Jersey Tobacco Settlement Financing Corp., Capital Appreciation, “1-B”, 0%, 6/01/41 | 2,360,000 | 568,902 | ||||||
New Jersey Tobacco Settlement Financing Corp., Capital Appreciation, “1-C”, 0%, 6/01/41 | 30,000 | 7,119 | ||||||
$ | 3,738,229 | |||||||
Toll Roads - 0.9% | ||||||||
Triborough Bridge & Tunnel Authority Rev., NY, Capital Appreciation, “A”, 0%, 11/15/31 | $ | 1,510,000 | $ | 686,416 | ||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 6%, 1/01/37 | 335,000 | 356,447 | ||||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 5.5%, 1/01/42 | 535,000 | 546,321 | ||||||
$ | 1,589,184 | |||||||
Transportation - Special Tax - 3.3% | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “AA-1”, AGM, 4.95%, 7/01/26 | $ | 735,000 | $ | 691,767 | ||||
South Carolina Transportation Infrastructure Rev., “A”, AMBAC, 5%, 10/01/14 (c) | 1,645,000 | 1,684,414 | ||||||
South Carolina Transportation Infrastructure Rev., “A”, 5%, 10/01/23 | 2,825,000 | 3,207,788 | ||||||
$ | 5,583,969 | |||||||
Universities - Colleges - 6.3% | ||||||||
College of Charleston, SC, Academic & Administrative Facilities Rev., “B”, 5%, 4/01/22 | $ | 1,205,000 | $ | 1,379,785 | ||||
Pinellas County, FL, Educational Facilities Authority Rev. (Barry University), 6%, 10/01/41 | 200,000 | 211,860 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical, & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.125%, 4/01/32 | 75,000 | 61,331 |
44
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
Puerto Rico Industrial, Tourist, Educational, Medical, & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.375%, 4/01/42 | $ | 125,000 | $ | 98,938 | ||||
Puerto Rico Industrial, Tourist, Medical, & Environmental Central Facilities (University of Sacred Heart), 4.375%, 10/01/31 | 55,000 | 42,668 | ||||||
Puerto Rico Industrial, Tourist, Medical, & Environmental Central Facilities (University of Sacred Heart), 5%, 10/01/42 | 30,000 | 22,606 | ||||||
South Carolina Educational Facilities Authority (Wofford College), 5.25%, 4/01/32 | 1,000,000 | 1,029,540 | ||||||
University of South Carolina, Athletic Facilities Rev., “A”, 5%, 5/01/35 | 1,000,000 | 1,072,960 | ||||||
University of South Carolina, Athletic Facilities Rev., “A”, 5.5%, 5/01/38 | 1,000,000 | 1,081,280 | ||||||
University of South Carolina, Athletic Facilities Rev., “A”, 5%, 5/01/40 | 2,000,000 | 2,087,160 | ||||||
University of South Carolina, Higher Education Rev., “A”, 5%, 6/01/35 | 2,555,000 | 2,736,379 | ||||||
University of South Carolina, Higher Education Rev., “A”, 5%, 6/01/39 | 1,000,000 | 1,043,780 | ||||||
$ | 10,868,287 | |||||||
Universities - Secondary Schools - 0.1% | ||||||||
North Texas Education Finance Corp., Education Rev. (Uplift Education), “A”, 5.125%, 12/01/42 | $ | 220,000 | $ | 218,513 | ||||
Utilities - Investor Owned - 0.7% | ||||||||
Michigan Strategic Fund Ltd. Obligation Rev. (Detroit Edison Co.), 5.625%, 7/01/20 | $ | 800,000 | $ | 948,248 | ||||
Michigan Strategic Fund Ltd. Obligation Rev. (Detroit Edison Co.), 5.5%, 8/01/29 (b) | 150,000 | 164,579 | ||||||
$ | 1,112,827 | |||||||
Utilities - Municipal Owned - 8.5% | ||||||||
Easley, SC, Utility Rev., AGM, 5.25%, 12/01/31 | $ | 2,500,000 | $ | 2,733,775 | ||||
Easley, SC, Utility Rev., ASSD GTY, 5%, 12/01/34 | 2,325,000 | 2,489,029 | ||||||
Greenwood, SC, Combined Public Utility, Refunding & Improvement Systems, NATL, 5%, 12/01/21 | 175,000 | 175,340 | ||||||
Piedmont, SC, Municipal Power Agency, FGIC, 6.25%, 1/01/21 | 2,700,000 | 3,283,551 | ||||||
Piedmont, SC, Municipal Power Agency, “C”, AGM, 5%, 1/01/30 | 1,000,000 | 1,089,190 | ||||||
South Carolina Public Service Authority Rev. (Santee Cooper), “E”, 5%, 1/01/40 | 2,000,000 | 2,090,140 | ||||||
South Carolina Public Service Authority Rev., “A”, 5.5%, 1/01/38 | 2,500,000 | 2,732,700 | ||||||
$ | 14,593,725 |
Issuer | Shares/Par | Value ($) | ||||||
Utilities - Other - 1.5% | ||||||||
California M-S-R Energy Authority Gas Rev., “A”, 6.5%, 11/01/39 | $ | 685,000 | $ | 861,381 | ||||
Public Authority for Colorado Energy Natural Gas Purchase Rev., 6.25%, 11/15/28 | 130,000 | 154,014 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/21 | 270,000 | 301,347 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/22 | 290,000 | 324,005 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/26 | 570,000 | 635,009 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “C”, 5%, 2/01/21 | 330,000 | 366,802 | ||||||
$ | 2,642,558 | |||||||
Water & Sewer Utility Revenue - 14.3% | ||||||||
Charleston, SC, Waterworks & Sewer Rev., 5%, 1/01/24 | $ | 2,995,000 | $ | 3,509,900 | ||||
Charleston, SC, Waterworks & Sewer Rev., Capital Improvement, 5%, 1/01/35 | 1,000,000 | 1,087,490 | ||||||
Columbia, SC, Waterworks & Sewer Systems Rev., AGM, 5%, 2/01/15 (c) | 1,020,000 | 1,060,647 | ||||||
Columbia, SC, Waterworks & Sewer Systems Rev., “A”, 5%, 2/01/25 | 580,000 | 666,159 | ||||||
Columbia, SC, Waterworks & Sewer Systems Rev., “A”, 5%, 2/01/36 | 3,000,000 | 3,244,560 | ||||||
Columbia, SC, Waterworks and Sewer System Rev., 5%, 2/01/20 | 120,000 | 140,572 | ||||||
Columbia, SC, Waterworks and Sewer System Rev., 5%, 2/01/21 | 400,000 | 470,912 | ||||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 5.125%, 7/01/37 | 165,000 | 111,896 | ||||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 6%, 7/01/44 | 1,110,000 | 819,957 | ||||||
Dorchester County, SC, Waterworks & Sewer Systems Rev., ASSD GTY, 5%, 10/01/29 | 1,000,000 | 1,068,200 | ||||||
Greenville, SC, Renewable Water Resource Sewer Systems Rev., “A”, 5%, 1/01/24 | 1,000,000 | 1,117,640 | ||||||
Greenwood, SC, Sewer Systems Rev., AGM, 5%, 10/01/30 | 1,000,000 | 1,090,100 | ||||||
Guam Government Waterworks Authority, Water & Wastewater System Rev., 5.625%, 7/01/40 | 315,000 | 326,274 | ||||||
Laurens County, SC, Water & Sewer Commission, Waterworks District (Rabon Creek), “A”, 5%, 3/01/32 | 1,405,000 | 1,485,155 | ||||||
Lexington, SC, Waterworks & Sewer Systems Rev., ASSD GTY, 5%, 1/15/39 | 2,000,000 | 2,201,920 | ||||||
Spartanburg, SC, Sanitary Sewer District Convertible Rev., “B”, 5%, 3/01/33 | 1,000,000 | 1,086,810 | ||||||
Spartanburg, SC, Waterworks Rev., ASSD GTY, 5%, 6/01/39 | 2,000,000 | 2,139,460 | ||||||
Spartanburg, SC, Waterworks Rev., “A”, AGM, 5%, 6/01/17 | 2,040,000 | 2,293,266 |
45
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - continued | ||||||||
Sumter, SC, Waterworks & Sewer Systems Rev., SYNCORA, 5%, 12/01/25 | $ | 540,000 | $ | 584,177 | ||||
$ | 24,505,095 | |||||||
Total Municipal Bonds (Identified Cost, $161,032,323) | $ | 165,298,255 |
Money Market Funds - 1.6% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
MFS Institutional Money Market Portfolio, 0.09%, at Cost and Net Asset Value (v) | 2,792,200 | $ | 2,792,200 | |||||
Total Investments (Identified Cost, $163,824,523) | $ | 168,090,455 | ||||||
Other Assets, Less Liabilities - 2.0% | 3,462,691 | |||||||
Net Assets - 100.0% | $ | 171,553,146 |
See Portfolio Footnotes and Notes to Financial Statements
46
Table of Contents
PORTFOLIO OF INVESTMENTS
3/31/14
MFS TENNESSEE MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
Municipal Bonds - 96.5% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 2.0% | ||||||||
Memphis-Shelby County, TN, Airport Authority Facilities Rev., “A”, ASSD GTY, 5%, 7/01/39 | $ | 1,000,000 | $ | 1,048,520 | ||||
Memphis-Shelby County, TN, Airport Authority Facilities Rev., “D”, 5%, 7/01/25 | 1,000,000 | 1,112,100 | ||||||
$ | 2,160,620 | |||||||
General Obligations - General Purpose - 24.9% | ||||||||
Chattanooga, TN, “B”, 4%, 10/01/23 | $ | 1,325,000 | $ | 1,451,524 | ||||
Chattanooga, TN, “B”, 4%, 10/01/26 | 1,270,000 | 1,367,041 | ||||||
Guam Government, “A”, 5.25%, 11/15/37 | 215,000 | 195,265 | ||||||
Hamilton County, TN, General Obligation, “A”, 4%, 3/01/21 | 1,305,000 | 1,460,151 | ||||||
Johnson City, TN, 5%, 6/01/31 | 1,000,000 | 1,088,940 | ||||||
Memphis, TN, “A”, 5%, 11/01/22 | 1,500,000 | 1,776,435 | ||||||
Memphis, TN, “B”, 5%, 4/01/34 | 1,025,000 | 1,132,779 | ||||||
Metropolitan Government of Nashville & Davidson County, TN, 5%, 1/01/18 (c) | 2,000,000 | 2,294,060 | ||||||
Metropolitan Government of Nashville & Davidson County, TN, 5%, 7/01/21 | 2,000,000 | 2,351,800 | ||||||
Montgomery County, TN, 4%, 4/01/25 | 600,000 | 642,810 | ||||||
Pigeon Forge, TN, Industrial Development Board, Public Facilities, 5%, 6/01/34 | 1,000,000 | 1,094,900 | ||||||
Shelby County, TN, “A”, 4.75%, 3/01/18 | 200,000 | 227,952 | ||||||
Shelby County, TN, “A”, 5%, 3/01/28 | 2,000,000 | 2,291,920 | ||||||
State of Tennessee, “A”, 5%, 8/01/22 | 1,500,000 | 1,805,310 | ||||||
State of Tennessee, “A”, 5%, 10/01/29 | 1,500,000 | 1,715,160 | ||||||
State of Tennessee, “C”, 5%, 5/01/16 | 500,000 | 547,540 | ||||||
Sumner County, TN, 5%, 6/01/20 | 1,175,000 | 1,379,838 | ||||||
Sumner County, TN, 5%, 6/01/21 | 1,300,000 | 1,533,311 | ||||||
Williamson County, TN, “A”, 4%, 5/01/22 | 780,000 | 883,990 | ||||||
Williamson County, TN, School District, “A”, 4%, 3/01/19 | 1,015,000 | 1,145,478 | ||||||
$ | 26,386,204 | |||||||
General Obligations - Schools - 0.9% | ||||||||
Williamson County, TN, School District, 5%, 4/01/26 | $ | 740,000 | $ | 943,041 | ||||
Healthcare Revenue - Hospitals - 11.2% | ||||||||
Brazoria County, TX, Health Facilities Development Corp., Hospital Rev. (Brazosport Regional Health System), 5.25%, 7/01/32 | $ | 280,000 | $ | 260,988 | ||||
Chattanooga, TN, Health Educational & Housing Facility Board Rev. (Catholic Health Initiatives), “A”, 5.25%, 1/01/45 | 500,000 | 526,090 | ||||||
Chattanooga, TN, Health Educational & Housing Facility Board Rev. (Catholic Health Initiatives), “D”, 6.25%, 10/01/33 | 1,000,000 | 1,132,550 | ||||||
DeKalb County, GA, Hospital Authority Rev. (DeKalb Medical Center, Inc.), 6.125%, 9/01/40 | 295,000 | 298,953 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Escambia County, FL, Health Facilities Authority (Baptist Hospital, Inc.), “A”, 6%, 8/15/36 | $ | 680,000 | $ | 720,440 | ||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 7%, 8/15/44 | 405,000 | 443,479 | ||||||
Jackson, TN, Hospital Rev. (Jackson-Madison Project), 5.625%, 4/01/38 | 1,000,000 | 1,059,820 | ||||||
Johnson City, TN, Health & Education Financing Authority Rev. (Johnson City Medical Center Hospital), ETM, NATL, 5%, 7/01/18 (c) | 195,000 | 195,472 | ||||||
Johnson City, TN, Health & Educational Facilities Board, Hospital Rev. (Mountain States Health Alliance), “A”, 5.5%, 7/01/31 | 400,000 | 410,740 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6.375%, 6/01/40 | 790,000 | 845,632 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6.5%, 3/01/45 | 265,000 | 284,671 | ||||||
Knox County, TN, Health, Educational, Hospital & Housing Facilities Board Rev. (Covenant Health), Capital Appreciation, “A”, AGM, 0%, 1/01/41 | 900,000 | 201,762 | ||||||
Louisville & Jefferson County, KY, Metropolitan Government Healthcare Systems Rev. (Norton Healthcare, Inc.), 5.25%, 10/01/36 | 675,000 | 681,743 | ||||||
Miami-Dade County, FL, Health Facilities Authority Hospital Rev. (Variety Children’s Hospital), “A”, 6%, 8/01/30 | 85,000 | 94,717 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6%, 10/01/27 | 510,000 | 547,898 | ||||||
Rutherford County, TN, Health & Educational Facilities Board Rev. (Ascension Health Senior Credit Group), “C”, 5%, 11/15/40 | 1,500,000 | 1,570,875 | ||||||
Shelby County, TN, Health, Educational & Housing Facilities Board Rev. (Methodist Healthcare), “B”, AGM, 5.25%, 9/01/27 | 1,500,000 | 1,579,425 | ||||||
St. Petersburg, FL, Health Facilities Authority Rev., 6.5%, 11/15/39 | 170,000 | 191,910 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (ProHealth Care, Inc. Obligated Group), 6.625%, 2/15/39 | 785,000 | 871,232 | ||||||
$ | 11,918,397 | |||||||
Healthcare Revenue - Long Term Care - 2.2% | ||||||||
Blount County, TN, Health & Educational Facilities Board Rev. (Asbury, Inc.), “A”, 5.125%, 4/01/23 | $ | 430,000 | $ | 433,853 |
47
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Long Term Care - continued | ||||||||
Johnson City, TN, Health & Educational Facilities Board Rev. (Appalachian Christian Village Project), “A”, 5%, 2/15/43 | $ | 1,000,000 | $ | 872,130 | ||||
Nashville & Davidson County, TN, Metropolitan Government Health & Educational Facilities Board Rev. (The Blakeford at Green Hills), 5%, 7/01/37 | 1,000,000 | 1,007,320 | ||||||
$ | 2,313,303 | |||||||
Industrial Revenue - Other - 0.3% | ||||||||
Liberty, NY, Development Corp. Rev. (Goldman Sachs Headquarters), 5.25%, 10/01/35 | $ | 255,000 | $ | 280,054 | ||||
Miscellaneous Revenue - Entertainment & Tourism - 2.5% | ||||||||
Memphis-Shelby County, TN, Sports Authority, Inc. Rev., “B”, 5.375%, 11/01/29 | $ | 2,500,000 | $ | 2,690,950 | ||||
Miscellaneous Revenue - Other - 5.2% | ||||||||
ABAG Finance Authority for Non-Profit Corps., CA, Rev. (Jackson Lab), 5.75%, 7/01/15 (c) | $ | 1,000,000 | $ | 1,089,560 | ||||
Hardeman County, TN, Correctional Facilities Rev., 7.75%, 8/01/17 | 435,000 | 436,222 | ||||||
Metropolitan Government of Nashville & Davidson County, TN, Sports Authority Rev., Public Improvement, “A”, 5%, 8/01/21 | 535,000 | 615,528 | ||||||
Metropolitan Government of Nashville & Davidson County, TN, Sports Authority Rev., Public Improvement, “A”, 5%, 8/01/23 | 1,205,000 | 1,387,063 | ||||||
Metropolitan Nashville Airport Authority, Special Facilities Rev. (Aero Nashville LLC Project), 5.2%, 7/01/26 | 920,000 | 966,405 | ||||||
New York Liberty Development Corp. Liberty Rev., (7 World Trade Center Project), 5%, 9/15/40 | 980,000 | 1,049,600 | ||||||
$ | 5,544,378 | |||||||
Multi-Family Housing Revenue - 1.0% | ||||||||
Knoxville, TN, Community Development Corp., 5%, 7/01/24 | $ | 1,000,000 | $ | 1,004,880 | ||||
Sales & Excise Tax Revenue - 1.8% | ||||||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6.5%, 1/15/30 | $ | 480,000 | $ | 529,234 | ||||
Guam Government Business Privilege Tax Rev., “A”, 5.25%, 1/01/36 | 300,000 | 310,584 | ||||||
Guam Government Business Privilege Tax Rev., “C”, 5%, 11/15/17 | 120,000 | 134,144 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., 5.25%, 8/01/57 | 525,000 | 422,767 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “C”, 5%, 8/01/40 | 160,000 | 131,126 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, 0%, 8/01/56 | 7,755,000 | 430,247 | ||||||
$ | 1,958,102 |
Issuer | Shares/Par | Value ($) | ||||||
Single Family Housing - State - 5.7% | ||||||||
Tennessee Housing Development Agency Rev., Homeownership Program, 5%, 7/01/26 | $ | 990,000 | $ | 998,474 | ||||
Tennessee Housing Development Agency Rev., Homeownership Program, 5%, 7/01/29 | 795,000 | 820,996 | ||||||
Tennessee Housing Development Agency Rev., Homeownership Program, 5.45%, 7/01/38 | 295,000 | 304,661 | ||||||
Tennessee Housing Development Agency Rev., Homeownership Program, “2”, 4.55%, 7/01/24 | 1,345,000 | 1,383,871 | ||||||
Tennessee Housing Development Agency Rev., Homeownership Program, “2-C”, 3.1%, 7/01/28 | 645,000 | 621,154 | ||||||
Tennessee Housing Development Agency Rev., Homeownership Program, “2-C”, 3.3%, 1/01/31 | 975,000 | 933,670 | ||||||
Tennessee Housing Development Agency, Residential Financing Program Rev., “1-B”, 3.6%, 1/01/31 | 955,000 | 932,615 | ||||||
$ | 5,995,441 | |||||||
State & Agency - Other - 1.0% | ||||||||
Hardeman County, TN, Industrial Development Board Rev., “B”, ASSD GTY, 5%, 6/01/40 | $ | 1,000,000 | $ | 1,037,930 | ||||
State & Local Agencies - 6.7% | ||||||||
Blount County, TN, Public Building Authority Rev. (Local Government Public Improvement), “B-12-A”, 5%, 6/01/22 | $ | 500,000 | $ | 569,770 | ||||
Chattanooga, TN, Industrial Development Board, Lease Rental Rev. (Southside Redevelopment Corp.), 5%, 10/01/20 | 700,000 | 804,307 | ||||||
Chattanooga, TN, Industrial Development Board, Lease Rental Rev. (Southside Redevelopment Corp.), 5%, 10/01/24 | 1,000,000 | 1,110,990 | ||||||
New York Tobacco Settlement Financing Corp., Asset-Backed Rev., “B”, 5%, 6/01/21 | 310,000 | 334,775 | ||||||
Tennessee School Bond Authority, “B”, 5.125%, 5/01/33 | 2,000,000 | 2,180,380 | ||||||
Tennessee School Bond Authority, “C”, AGM, 5%, 5/01/32 | 2,000,000 | 2,145,960 | ||||||
$ | 7,146,182 | |||||||
Tax - Other - 0.2% | ||||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/24 | $ | 150,000 | $ | 158,480 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/29 | 50,000 | 52,323 | ||||||
$ | 210,803 | |||||||
Tobacco - 1.9% | ||||||||
Illinois Railsplitter Tobacco Settlement Authority, 6%, 6/01/28 | $ | 200,000 | $ | 225,478 | ||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.5%, 6/01/23 | 260,000 | 249,967 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.75%, 6/01/34 | 190,000 | 143,498 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 5%, 6/01/41 | 410,000 | 308,500 |
48
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Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Tobacco - continued | ||||||||
New Jersey Tobacco Settlement Financing Corp., Capital Appreciation, “1-B”, 0%, 6/01/41 | $ | 1,470,000 | $ | 354,358 | ||||
New Jersey Tobacco Settlement Financing Corp., Capital Appreciation, “1-C”, 0%, 6/01/41 | 20,000 | 4,746 | ||||||
Virgin Islands Tobacco Settlement Financing Corp., 5%, 5/15/31 | 750,000 | 711,900 | ||||||
$ | 1,998,447 | |||||||
Toll Roads - 0.5% | ||||||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 6%, 1/01/37 | $ | 200,000 | $ | 212,804 | ||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 5.5%, 1/01/42 | 320,000 | 326,771 | ||||||
$ | 539,575 | |||||||
Transportation - Special Tax - 0.6% | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “CC”, AGM, 5.5%, 7/01/28 | $ | 600,000 | $ | 594,108 | ||||
Universities - Colleges - 4.4% | ||||||||
Claiborne County, TN, Industrial Development Board Rev. (Lincoln Memorial University Project), 6.625%, 10/01/39 | $ | 500,000 | $ | 531,465 | ||||
Claiborne County, TN, Industrial Development Board Rev. (Lincoln Memorial University Project), 6.125%, 10/01/40 | 250,000 | 257,885 | ||||||
Franklin County, TN, Health & Educational Facilities Board Rev. (University of the South), 4%, 9/01/23 | 1,000,000 | 1,054,420 | ||||||
Nashville & Davidson County, TN, Metropolitan Government Health & Educational Facilities Board, 5%, 10/01/34 | 2,500,000 | 2,695,025 | ||||||
Pinellas County, FL, Educational Facilities Authority Rev. (Barry University), 6%, 10/01/41 | 120,000 | 127,116 | ||||||
$ | 4,665,911 | |||||||
Universities - Dormitories - 1.1% | ||||||||
Shelby County, TN, Health Educational & Housing Facilities Board Rev. (Rhodes College), 5.5%, 8/01/40 | $ | 1,000,000 | $ | 1,126,170 | ||||
Universities - Secondary Schools - 0.1% | ||||||||
North Texas Education Finance Corp., Education Rev. (Uplift Education), “A”, 5.125%, 12/01/42 | $ | 130,000 | $ | 129,121 | ||||
Utilities - Municipal Owned - 6.7% | ||||||||
Chattanooga, TN, Electric Rev., “A”, 5%, 9/01/33 | $ | 2,000,000 | $ | 2,126,000 | ||||
Citizens Gas Utility District, TN, Gas Rev., 5%, 5/01/35 | 1,000,000 | 1,036,210 |
Issuer | Shares/Par | Value ($) | ||||||
Utilities - Municipal Owned - continued | ||||||||
Clarksville, TN, Electric System Rev., “A”, 5%, 9/01/34 | $ | 1,250,000 | $ | 1,325,113 | ||||
Guam Power Authority Rev., “A”, 5.5%, 10/01/30 | 300,000 | 316,731 | ||||||
Johnson City, TN, Electric Rev., AGM, 5%, 5/01/29 | 1,000,000 | 1,102,450 | ||||||
Long Island, NY, Power Authority, Electric Systems Rev., “A”, 6%, 5/01/33 | 195,000 | 220,104 | ||||||
Metropolitan Government of Nashville & Davidson County, TN, Electric Rev., “A”, AMBAC, 5%, 5/15/29 | 1,000,000 | 1,005,650 | ||||||
$ | 7,132,258 | |||||||
Utilities - Other - 1.7% | ||||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/21 | $ | 225,000 | $ | 251,122 | ||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/22 | 115,000 | 128,485 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/23 | 85,000 | 95,603 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/26 | 1,200,000 | 1,336,860 | ||||||
$ | 1,812,070 | |||||||
Water & Sewer Utility Revenue - 13.9% | ||||||||
Clarksville, TN, Water, Sewer & Gas Rev., 5%, 2/01/29 | $ | 1,000,000 | $ | 1,109,010 | ||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 5.125%, 7/01/37 | 100,000 | 67,816 | ||||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 6%, 7/01/44 | 670,000 | 494,929 | ||||||
Harpeth Valley, TN, Utilities District, Davidson & Williamson Counties Rev., FGIC, 5.25%, 9/01/37 | 1,000,000 | 1,080,840 | ||||||
Knoxville, TN, Electrical System Rev., “BB”, 3%, 7/01/42 | 1,475,000 | 1,185,605 | ||||||
Knoxville, TN, Waste Water System Rev., “A”, NATL, 5%, 4/01/15 (c) | 2,620,000 | 2,745,419 | ||||||
Knoxville, TN, Waste Water System Rev., “B”, 5%, 4/01/21 | 1,150,000 | 1,355,241 | ||||||
Memphis, TN, Sanitary Sewerage System Rev., 5%, 5/01/19 | 1,425,000 | 1,653,570 | ||||||
Memphis, TN, Sanitary Sewerage System Rev., 5%, 10/01/21 | 865,000 | 991,662 | ||||||
Metropolitan Government of Nashville & Davidson County, TN, Water & Sewer Rev., “A”, AGM, 5.25%, 1/01/22 | 1,365,000 | 1,633,059 | ||||||
Mississippi Development Bank Special Obligation (City of Jackson Water and Sewer System Rev. Bond Project), AGM, 6.875%, 12/01/40 | 65,000 | 81,692 | ||||||
South Blount County, TN, Utility District Waterworks Rev., AGM, 5%, 12/01/33 | 2,140,000 | 2,308,011 | ||||||
$ | 14,706,854 | |||||||
Total Municipal Bonds (Identified Cost, $99,207,054) | $ | 102,294,799 |
49
Table of Contents
Portfolio of Investments – continued
Money Market Funds - 1.6% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
MFS Institutional Money Market Portfolio, 0.09%, at Cost and Net Asset Value (v) | 1,662,126 | $ | 1,662,126 | |||||
Total Investments (Identified Cost, $100,869,180) | $ | 103,956,925 | ||||||
Other Assets, Less Liabilities - 1.9% | 2,038,324 | |||||||
Net Assets - 100.0% | $ | 105,995,249 |
See Portfolio Footnotes and Notes to Financial Statements
50
Table of Contents
PORTFOLIO OF INVESTMENTS
3/31/14
MFS VIRGINIA MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
Municipal Bonds - 99.5% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 3.4% | ||||||||
Chicago, IL, O’Hare International Airport Rev., Third Lien, “A”, 5.625%, 1/01/35 | $ | 855,000 | $ | 935,301 | ||||
Metropolitan Washington, DC, Airport Authority Rev., 5.375%, 10/01/28 | 1,500,000 | 1,674,810 | ||||||
Metropolitan Washington, DC, Airport Authority Rev., “A”, NATL, 5%, 10/01/35 | 3,000,000 | 3,133,230 | ||||||
Norfolk, VA, Airport Authority Rev., AGM, 5%, 7/01/23 | 2,000,000 | 2,178,380 | ||||||
Norfolk, VA, Airport Authority Rev., AGM, 5%, 7/01/24 | 1,000,000 | 1,081,240 | ||||||
Virginia Resources Authority, Airport Rev., “B”, 5.125%, 8/01/27 | 720,000 | 720,835 | ||||||
$ | 9,723,796 | |||||||
General Obligations - General Purpose - 12.9% | ||||||||
Alexandria, VA, General Obligation, “A”, 4.5%, 6/15/21 | $ | 1,000,000 | $ | 1,157,400 | ||||
Arlington County, VA, General Obligation, “A”, 5%, 8/01/22 | 1,950,000 | 2,346,903 | ||||||
Chesapeake, VA, “B”, 5%, 6/01/23 | 1,930,000 | 2,240,383 | ||||||
Guam Government, “A”, 6.75%, 11/15/29 | 925,000 | 979,695 | ||||||
Guam Government, “A”, 5.25%, 11/15/37 | 540,000 | 490,433 | ||||||
Guam Government, “A”, 7%, 11/15/39 | 110,000 | 116,511 | ||||||
Isle Wight County, VA, “A”, 4%, 4/01/20 | 1,045,000 | 1,148,863 | ||||||
Loudoun County , VA, General Obligation Public Improvement, “A”, 5%, 12/01/20 | 2,290,000 | 2,728,993 | ||||||
Loudoun County , VA, General Obligation Public Improvement, “A”, 5%, 12/01/22 | 3,000,000 | 3,619,620 | ||||||
Loudoun County , VA, General Obligation Public Improvement, “B”, 5%, 11/01/18 | 5,500,000 | 6,436,210 | ||||||
Lynchburg, VA, Public Improvement, 5%, 12/01/23 | 1,000,000 | 1,137,370 | ||||||
Memphis, TN, Refunding General Improvement, “B”, 5%, 4/01/31 | 355,000 | 399,900 | ||||||
Portsmouth, VA, General Obligation Public Improvement, “A”, 5%, 2/01/22 | 1,255,000 | 1,481,653 | ||||||
Richmond, VA, Public Improvement, “B”, 5%, 7/15/20 | 1,685,000 | 1,985,301 | ||||||
Stafford County & Staunton, VA, Industrial Development Authority Rev., 5%, 8/01/14 | 590,000 | 599,375 | ||||||
Stafford County, VA, General Obligation Public Improvement, 5%, 7/01/22 | 555,000 | 655,505 | ||||||
Suffolk, VA, General Obligation, 5%, 12/01/21 | 3,330,000 | 3,937,592 | ||||||
Suffolk, VA, General Obligation, 5%, 12/01/22 | 2,480,000 | 2,949,439 | ||||||
Virginia Beach, VA, Public Improvement, “B”, 5%, 4/01/22 | 2,000,000 | 2,384,240 | ||||||
$ | 36,795,386 | |||||||
Healthcare Revenue - Hospitals - 18.0% | ||||||||
Brazoria County, TX, Health Facilities Development Corp., Hospital Rev. (Brazosport Regional Health System), 5.25%, 7/01/32 | $ | 830,000 | $ | 773,643 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Charlotte County, VA, Industrial Development Authority Rev. (Halifax Hospital), 5%, 9/01/37 | $ | 1,000,000 | $ | 1,015,610 | ||||
Fairfax County, VA, Industrial Development Authority Rev. (Inova Health Systems), 4%, 5/15/42 | 3,000,000 | 2,872,770 | ||||||
Fairfax County, VA, Industrial Development Authority Rev. (Inova Health Systems), “A”, 5.5%, 5/15/14 (c) | 1,000,000 | 1,006,240 | ||||||
Fairfax County, VA, Industrial Development Authority Rev. (Inova Health Systems), “A”, 5.5%, 5/15/35 | 1,500,000 | 1,650,435 | ||||||
Fairfax County, VA, Industrial Development Authority Rev. (Inova Health Systems), “C”, 5%, 5/15/25 | 500,000 | 553,340 | ||||||
Fauquier County, VA, Industrial Development Authority Hospital Authority Rev. (Fauquier Hospital Obligation Group), “B”, 5.25%, 10/01/17 (c) | 2,000,000 | 2,303,100 | ||||||
Fredericksburg, VA, Economic Development Authority, Hospital Facilities Rev. (Medicorp Health System), 5.25%, 6/15/19 | 1,125,000 | 1,248,266 | ||||||
Fredericksburg, VA, Industrial Development Rev. (Medicorp Health Systems), “B”, 5.125%, 6/15/33 | 750,000 | 750,173 | ||||||
Henrico County, VA, Economic Development Authority Rev. (Bon Secours Health Systems, Inc.), “B-2”, AGM, 5.25%, 11/01/42 | 1,750,000 | 1,841,245 | ||||||
Henrico County, VA, Industrial Development Authority Rev. (Bon Secours Health Systems, Inc.), NATL, 6.25%, 8/15/20 | 1,500,000 | 1,719,465 | ||||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 7%, 8/15/44 | 970,000 | 1,062,160 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.25%, 7/01/31 | 375,000 | 409,106 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.375%, 7/01/41 | 1,110,000 | 1,210,855 | ||||||
Louisville & Jefferson County, KY, Metropolitan Government Healthcare Systems Rev. (Norton Healthcare, Inc.), 5.25%, 10/01/36 | 1,635,000 | 1,651,334 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6%, 10/01/27 | 635,000 | 682,187 | ||||||
Norfolk, VA, Economic Development Authority Health Care Facilities Rev. (Sentara Healthcare), “B”, 5%, 11/01/36 | 2,875,000 | 3,060,438 | ||||||
Ohio Higher Educational Facility Commission (University Hospital Health System), “A”, 6.75%, 1/15/15 (c) | 1,315,000 | 1,382,591 |
51
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Roanoke, VA, Economic Development Authority, Hospital Rev. (Carilion Medical Center), 5%, 7/01/33 | $ | 2,385,000 | $ | 2,502,175 | ||||
Roanoke, VA, Industrial Development Authority, Hospital Rev. (Carilion Health Systems), “B”, 5%, 7/01/20 (c) | 45,000 | 53,527 | ||||||
Roanoke, VA, Industrial Development Authority, Hospital Rev. (Carilion Health Systems), “B”, N, 5%, 7/01/38 | 2,955,000 | 3,076,894 | ||||||
Roanoke, VA, Industrial Development Authority, Hospital Rev. (Roanoke Memorial Hospital), “B”, ETM, NATL, 6.125%, 7/01/17 (c) | 3,000,000 | 3,247,650 | ||||||
Royal Oak, MI, Hospital Finance Authority Rev. (William Beaumont Hospital), 8.25%, 9/01/39 | 1,805,000 | 2,195,403 | ||||||
Virginia Small Business Financing Authority, Healthcare Facility Rev. (Sentra Healthcare), 5%, 11/01/40 | 4,000,000 | 4,183,040 | ||||||
Virginia Small Business Financing Authority, Hospital Rev. (Wellmont Health Project), ‘‘A’’, 5.25%, 9/01/37 | 2,000,000 | 2,012,920 | ||||||
Washington County, VA, Industrial Development Authority, Hospital Facilities Rev. (Mountain States Health Alliance), “C”, 7.5%, 7/01/29 | 1,400,000 | 1,601,922 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 6.75%, 7/01/29 | 220,000 | 246,143 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 7%, 7/01/39 | 530,000 | 583,186 | ||||||
Winchester, VA, Industrial Development Authority, Hospital Rev. (Valley Health Systems), “E”, 5.75%, 1/01/39 | 3,000,000 | 3,063,270 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (ProHealth Care, Inc. Obligated Group), 6.625%, 2/15/39 | 1,880,000 | 2,086,518 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (Wheaton Franciscan Healthcare), 5.25%, 8/15/31 | 1,280,000 | 1,308,467 | ||||||
$ | 51,354,073 | |||||||
Healthcare Revenue - Long Term Care - 2.2% | ||||||||
Albemarle County, VA, Economic Development Authority, Residential Care Facilities Rev. (Westminster-Canterbury Blue Ridge), “A”, 5%, 1/01/42 | $ | 1,000,000 | $ | 905,500 | ||||
Chesterfield County, VA, Health Center Commission Residential Care Facility, 6.25%, 12/01/38 | 750,000 | 534,675 | ||||||
Henrico County, VA, Economic Development Authority Rev., Residential Care Facility (Virginia United Methodist Homes, Inc.), 5%, 6/01/24 | 395,000 | 399,195 | ||||||
Henrico County, VA, Economic Development Authority Rev., Residential Care Facility (Virginia United Methodist Homes, Inc.), 5%, 6/01/25 | 385,000 | 386,767 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Long Term Care - continued | ||||||||
James City County, VA, Economic Development Authority, Residential Care Facilities Rev. (Virginia United Methodist Homes of Williamsburg), “A”, 6%, 6/01/43 | $ | 620,800 | $ | 530,083 | ||||
James City County, VA, Economic Development Authority, Residential Care Facilities Rev. (Virginia United Methodist Homes of Williamsburg), “A”, 2%, 10/01/48 (a) | 200,800 | 5,317 | ||||||
Lexington, VA, Industrial Development Authority Residential Care Facilities (Kendal at Lexington), “A”, 5.5%, 1/01/37 | 1,000,000 | 998,620 | ||||||
Norfolk, VA, Redevelopment & Housing Authority Rev. (Fort Norfolk Retirement Community), “A”, 6.125%, 1/01/35 | 1,240,000 | 1,239,888 | ||||||
Suffolk, VA, Industrial Development Authority, Retirement Facilities Rev. (Lake Prince Center, Inc.), 5.3%, 9/01/31 | 750,000 | 747,428 | ||||||
Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7%, 11/01/30 | 175,000 | 194,612 | ||||||
Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7.125%, 11/01/40 | 265,000 | 291,550 | ||||||
$ | 6,233,635 | |||||||
Industrial Revenue - Other - 1.1% | ||||||||
Loudoun County, VA, Industrial Development Authority Rev. (Dulles Airport Marriott Hotel), 7.125%, 9/01/15 | $ | 2,000,000 | $ | 2,005,000 | ||||
Peninsula Ports Authority, VA, Coal Terminal Rev. (Dominion Terminal Associates), 6%, 4/01/33 | 1,000,000 | 1,000,810 | ||||||
$ | 3,005,810 | |||||||
Industrial Revenue - Paper - 0.1% | ||||||||
Valparaiso, IN, Exempt Facilities Rev. (Pratt Paper LLC Project), 6.75%, 1/01/34 | $ | 100,000 | $ | 105,839 | ||||
Valparaiso, IN, Exempt Facilities Rev. (Pratt Paper LLC Project), 7%, 1/01/44 | 130,000 | 138,189 | ||||||
West Point, VA, Industrial Development Authority, Solid Waste Disposal Rev. (Chesapeake Corp.), “A”, 6.375%, 3/01/19 (a)(d) | 1,683,272 | 168 | ||||||
$ | 244,196 | |||||||
Miscellaneous Revenue - Other - 1.0% | ||||||||
New York Liberty Development Corp. Liberty Rev., (7 World Trade Center Project), 5%, 9/15/40 | $ | 2,635,000 | $ | 2,822,138 | ||||
Summit County, OH, Port Authority Building Rev. (Flats East Development Recovery Zone Facility Bonds), 6.875%, 5/15/40 | 80,000 | 86,081 | ||||||
$ | 2,908,219 |
52
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Multi-Family Housing Revenue - 5.8% | ||||||||
Arlington County, VA, Industrial Development Authority Rev. (Colonial Village), FNMA, 5.15%, 11/01/31 | $ | 2,795,000 | $ | 2,796,957 | ||||
Virginia Housing Development Authority Rev., “C”, 5.625%, 11/01/38 | 1,355,000 | 1,375,190 | ||||||
Virginia Housing Development Authority Rev., “D”, 4.6%, 7/01/33 | 1,000,000 | 1,005,600 | ||||||
Virginia Housing Development Authority Rev., Rental Housing, “B”, 5.5%, 6/01/30 | 1,450,000 | 1,570,814 | ||||||
Virginia Housing Development Authority Rev., Rental Housing, “B”, 5%, 6/01/45 | 3,050,000 | 3,126,830 | ||||||
Virginia Housing Development Authority Rev., Rental Housing, “E”, 4.8%, 10/01/39 | 3,000,000 | 3,049,230 | ||||||
Virginia Housing Development Authority Rev., Rental Housing, “F”, 4.8%, 4/01/37 | 1,330,000 | 1,360,923 | ||||||
Virginia Housing Development Authority Rev., Rental Housing, “F”, 5%, 4/01/45 | 2,125,000 | 2,174,130 | ||||||
$ | 16,459,674 | |||||||
Port Revenue - 0.4% | ||||||||
Virginia Port Authority Facilities Rev., FGIC, 5%, 7/01/36 | $ | 1,000,000 | $ | 1,000,690 | ||||
Sales & Excise Tax Revenue - 0.8% | ||||||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6%, 1/15/41 | $ | 1,320,000 | $ | 1,388,125 | ||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “A”, 5.5%, 8/01/19 (c) | 40,000 | 48,322 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “C”, 5%, 8/01/40 | 435,000 | 356,500 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “C”, 5.25%, 8/01/40 | 590,000 | 501,471 | ||||||
$ | 2,294,418 | |||||||
Single Family Housing - State - 4.3% | ||||||||
California Housing Finance Agency Rev. (Home Mortgage), “I”, 4.7%, 8/01/26 | $ | 1,370,000 | $ | 1,371,110 | ||||
Virginia Housing Development Authority Commonwealth, “B”, 4.75%, 7/01/32 | 2,000,000 | 2,011,700 | ||||||
Virginia Housing Development Authority Commonwealth, “C”, 4.4%, 10/01/22 | 1,270,000 | 1,272,235 | ||||||
Virginia Housing Development Authority Commonwealth, “C”, 4.625%, 10/01/27 | 2,630,000 | 2,633,156 | ||||||
Virginia Housing Development Authority Rev., Rental Housing, “F”, 5.1%, 1/01/41 | 3,770,000 | 3,954,428 | ||||||
Virginia Housing Development Authority, Commonwealth Mortgage, “A-5”, 4.4%, 1/01/15 | 1,000,000 | 1,020,020 | ||||||
$ | 12,262,649 | |||||||
State & Local Agencies - 11.6% | ||||||||
Caroline County, VA, Industrial Development Authority Lease Rev., AMBAC, 5.125%, 6/15/34 | $ | 1,000,000 | $ | 1,000,660 | ||||
Delaware Valley, PA, Regional Finance Authority, “C”, FRN, 0.908%, 6/01/37 | 1,915,000 | 1,304,402 |
Issuer | Shares/Par | Value ($) | ||||||
State & Local Agencies - continued | ||||||||
Fairfax County, VA, Economic Development Authority (Fairfax Public Improvement Project), 5%, 1/15/15 (c) | $ | 1,000,000 | $ | 1,037,710 | ||||
Manassas Park, VA, Economic Development Authority Lease Rev., “A”, 6%, 7/15/35 | 1,000,000 | 1,021,900 | ||||||
Massachusetts College Building Authority Rev., “A”, 5%, 5/01/31 | 330,000 | 370,385 | ||||||
Montgomery County, VA, Industrial Development Authority (Public Facilities Project), 5%, 2/01/29 | 500,000 | 539,270 | ||||||
Powhatan County, VA, 5%, 1/15/32 | 2,500,000 | 2,727,475 | ||||||
Stafford County, VA, Economic Development Authority Lease Rev., ASSD GTY, 5%, 4/01/33 | 3,000,000 | 3,226,620 | ||||||
University of Kentucky, General Receipts, “A”, 5%, 4/01/36 | 190,000 | 209,979 | ||||||
University of Kentucky, General Receipts, “A”, 5%, 4/01/37 | 355,000 | 391,082 | ||||||
Virginia Beach, VA, Development Authority Facility Rev., “A”, 4%, 12/01/30 | 845,000 | 866,759 | ||||||
Virginia College Building Authority, Educational Facilities Rev., 5%, 2/01/23 | 2,140,000 | 2,546,450 | ||||||
Virginia College Building Authority, Educational Facilities Rev. (21st Century College & Equipment), “A”, 5%, 2/01/29 | 1,500,000 | 1,660,860 | ||||||
Virginia College Building Authority, Educational Facilities Rev. (Public Higher Education Financing), “A”, 5%, 9/01/20 | 2,885,000 | 3,409,003 | ||||||
Virginia College Building Authority, Educational Facilities Rev. (Public Higher Education Financing), “A”, 5%, 9/01/27 | 3,000,000 | 3,366,300 | ||||||
Virginia College Building Authority, Educational Facilities Rev. (Public Higher Education Financing), “B”, 5%, 9/01/20 | 3,000,000 | 3,544,890 | ||||||
Virginia Public Building Authority, Public Facilities Rev., “B”, 5.25%, 8/01/28 | 1,000,000 | 1,112,540 | ||||||
Virginia Public Building Authority, Public Facilities Rev., “B”, 5%, 8/01/29 | 1,050,000 | 1,187,424 | ||||||
Virginia Public Building Authority, Public Facilities Rev., “B-3”, 4%, 8/01/21 | 1,000,000 | 1,111,870 | ||||||
Virginia Public School Authority (1997 Resolution), “A”, 5%, 8/01/19 | 1,175,000 | 1,380,190 | ||||||
Virginia Public School Authority (1997 Resolution), “A”, 5%, 8/01/30 | 1,000,000 | 1,129,820 | ||||||
$ | 33,145,589 | |||||||
Tax - Other - 1.4% | ||||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/24 | $ | 365,000 | $ | 385,633 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/29 | 120,000 | 125,574 | ||||||
Virgin Islands Public Finance Authority Rev. (Diageo), “A”, 6.625%, 10/01/29 | 830,000 | 889,553 | ||||||
Virgin Islands Public Finance Authority Rev., “A-1”, 5%, 10/01/29 | 250,000 | 256,148 | ||||||
Virgin Islands Public Finance Authority Rev., “A-1”, 5%, 10/01/39 | 285,000 | 283,777 |
53
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Tax - Other - continued | ||||||||
Virgin Islands Public Finance Authority Rev., “B”, 5%, 10/01/25 | $ | 250,000 | $ | 263,610 | ||||
Virgin Islands Public Finance Authority Rev., Matching Fund Loan Note, “A”, 5%, 10/01/29 | 1,645,000 | 1,691,800 | ||||||
$ | 3,896,095 | |||||||
Tax Assessment - 0.3% | ||||||||
Embrey Mill Community Development Authority, VA, Special Assessment Rev., 7.25%, 3/01/43 | $ | 750,000 | $ | 730,493 | ||||
Tobacco - 2.2% | ||||||||
Buckeye, OH, Tobacco Settlement Financing Authority, “A-2”, 5.875%, 6/01/47 | $ | 75,000 | $ | 60,384 | ||||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A-1”, 5.75%, 6/01/47 | 100,000 | 80,622 | ||||||
Illinois Railsplitter Tobacco Settlement Authority, 6%, 6/01/28 | 1,575,000 | 1,775,639 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.5%, 6/01/23 | 740,000 | 711,443 | ||||||
New Jersey Tobacco Settlement Financing Corp., Capital Appreciation, “1-B”, 0%, 6/01/41 | 3,925,000 | 946,161 | ||||||
New Jersey Tobacco Settlement Financing Corp., Capital Appreciation, “1-C”, 0%, 6/01/41 | 50,000 | 11,865 | ||||||
Virgin Islands Tobacco Settlement Financing Corp., 5%, 5/15/21 | 320,000 | 319,997 | ||||||
Virginia Tobacco Settlement Financing Corp., 5.625%, 6/01/15 (c) | 1,000,000 | 1,063,490 | ||||||
Virginia Tobacco Settlement Financing Corp., “B-1”, 5%, 6/01/47 | 2,000,000 | 1,382,160 | ||||||
$ | 6,351,761 | |||||||
Toll Roads - 1.4% | ||||||||
Virginia Small Business Financing Authority Rev. (95 Express Lanes LLC), 5%, 7/01/34 | $ | 2,500,000 | $ | 2,487,200 | ||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 6%, 1/01/37 | 565,000 | 601,171 | ||||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 5.5%, 1/01/42 | 905,000 | 924,150 | ||||||
$ | 4,012,521 | |||||||
Transportation - Special Tax - 3.5% | ||||||||
Commonwealth of Virginia, Transportation Board Grant Anticipation Rev., “A”, 5%, 9/15/27 | $ | 2,000,000 | $ | 2,274,960 | ||||
Commonwealth of Virginia, Transportation Board Rev., “A”, 4%, 9/15/26 | 1,000,000 | 1,060,800 | ||||||
Commonwealth of Virginia, Transportation Rev. (Northern Virginia Transportation District Program), “A”, 5%, 5/15/17 | 2,000,000 | 2,256,060 | ||||||
Virginia Port Authority, Port Fund Rev., 5%, 7/01/32 | 1,200,000 | 1,309,968 |
Issuer | Shares/Par | Value ($) | ||||||
Transportation - Special Tax - continued | ||||||||
Washington, DC, Metropolitan Area Transit Authority Gross Rev., “A”, 5.25%, 7/01/29 | $ | 1,485,000 | $ | 1,644,430 | ||||
Washington, DC, Metropolitan Area Transit Authority Gross Rev., “A”, 5.125%, 7/01/32 | 1,365,000 | 1,483,305 | ||||||
$ | 10,029,523 | |||||||
Universities - Colleges - 5.8% | ||||||||
Amherst, VA, Industrial Development Authority Rev. (Educational Facilities Sweet Briar), 5%, 9/01/26 | $ | 1,770,000 | $ | 1,800,869 | ||||
Massachusetts Development Finance Agency Rev. (Suffolk University), 5%, 7/01/30 | 615,000 | 625,836 | ||||||
Prince William County, VA, Industrial Development Authority Rev. (George Mason University Foundation Prince William Life Sciences Lab), 5.5%, 9/01/34 | 1,000,000 | 1,086,000 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical, & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.375%, 4/01/42 | 230,000 | 182,045 | ||||||
University of Virginia (University Rev.), 5%, 9/01/25 | 3,760,000 | 4,400,554 | ||||||
Virginia College Building Authority, Educational Facilities Rev. (Regent University), 5%, 6/01/26 | 2,000,000 | 2,045,060 | ||||||
Virginia College Building Authority, Educational Facilities Rev. (Richmond University), “A”, 5%, 3/01/21 | 2,115,000 | 2,503,145 | ||||||
Virginia College Building Authority, Educational Facilities Rev. (Roanoke College), 4.5%, 4/01/37 | 2,180,000 | 2,190,900 | ||||||
Virginia College Building Authority, Educational Facilities Rev. (Washington & Lee University), NATL, 5.25%, 1/01/31 | 1,000,000 | 1,201,220 | ||||||
Virginia Small Business Financing Authority, Educational Facilities Rev. (Roanoke College), 5.5%, 4/01/33 | 500,000 | 530,865 | ||||||
$ | 16,566,494 | |||||||
Universities - Secondary Schools - 0.7% | ||||||||
Alexandria, VA, Industrial Development Authority, Educational Facilities Rev. (Episcopal High School), “A”, 5%, 1/01/40 | $ | 1,900,000 | $ | 2,020,593 | ||||
Utilities - Municipal Owned - 2.7% | ||||||||
Bristol, VA, Utility Systems Rev., ETM, AGM, 5.75%, 7/15/16 (c) | $ | 240,000 | $ | 268,920 | ||||
Guam Power Authority Rev., “A”, 5.5%, 10/01/30 | 785,000 | 828,779 | ||||||
Long Island, NY, Power Authority, Electric Systems Rev., “A”, 6%, 5/01/33 | 470,000 | 530,508 | ||||||
Richmond, VA, Public Utility Rev., 5%, 1/15/15 (c) | 1,000,000 | 1,037,710 | ||||||
Richmond, VA, Public Utility Rev., “A”, 5%, 1/15/27 | 2,555,000 | 2,959,712 |
54
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Utilities - Municipal Owned - continued | ||||||||
Richmond, VA, Public Utility Rev., “A”, 5%, 1/15/38 | $ | 2,000,000 | $ | 2,201,220 | ||||
$ | 7,826,849 | |||||||
Utilities - Other - 1.2% | ||||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/19 | $ | 945,000 | $ | 1,061,991 | ||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/21 | 555,000 | 619,436 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/22 | 290,000 | 324,005 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/24 | 215,000 | 238,080 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/26 | 1,140,000 | 1,270,017 | ||||||
$ | 3,513,529 | |||||||
Water & Sewer Utility Revenue - 18.7% | ||||||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 5%, 7/01/33 | $ | 1,400,000 | $ | 938,518 | ||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 6%, 7/01/38 | 1,885,000 | 1,410,112 | ||||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 6%, 7/01/44 | 1,845,000 | 1,362,902 | ||||||
Fairfax County, VA, Water Authority Rev., 5%, 4/01/28 | 1,000,000 | 1,153,510 | ||||||
Guam Government Waterworks Authority, Water & Wastewater System Rev., 5.625%, 7/01/40 | 620,000 | 642,190 | ||||||
Guam Water & Wastewater System Rev., 5.25%, 7/01/20 | 60,000 | 66,873 | ||||||
Guam Water & Wastewater System Rev., 5.25%, 7/01/21 | 175,000 | 193,730 | ||||||
Hampton Roads, VA, Sanitation District Wastewater Rev., 5%, 4/01/33 | 2,000,000 | 2,151,080 | ||||||
Hampton Roads, VA, Sanitation District Wastewater Rev., 5%, 4/01/38 | 3,750,000 | 3,986,738 | ||||||
James City, VA, Water & Sewer Rev., 5%, 1/15/40 | 1,290,000 | 1,379,178 | ||||||
Norfolk, VA, Water Rev., 5%, 11/01/28 | 1,000,000 | 1,137,120 | ||||||
Norfolk, VA, Water Rev., 4.75%, 11/01/38 | 4,000,000 | 4,183,840 | ||||||
Spotsylvania County, VA, Water & Sewer Rev., AGM, 5%, 6/01/35 | 1,000,000 | 1,007,810 | ||||||
Upper Occoquan, VA, Sewage Authority Regional Sewage Rev., 5%, 7/01/41 | 2,000,000 | 2,124,600 | ||||||
Virginia Beach, VA, Water & Sewer System Rev., 5%, 10/01/21 | 1,390,000 | 1,654,378 | ||||||
Virginia Beach, VA, Water & Sewer System Rev., 5%, 10/01/22 | 1,310,000 | 1,564,769 | ||||||
Virginia Resources Authority, Clean Water Rev., 4.75%, 10/01/27 | 3,000,000 | 3,255,960 | ||||||
Virginia Resources Authority, Clean Water Rev., 5%, 10/01/31 | 1,000,000 | 1,117,260 |
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - continued | ||||||||
Virginia Resources Authority, Infrastructure Rev., 5.25%, 11/01/33 | $ | 2,895,000 | $ | 3,180,708 | ||||
Virginia Resources Authority, Infrastructure Rev. (Virginia Pooled Funding Program), “B”, 5%, 11/01/40 | 1,400,000 | 1,496,922 | ||||||
Virginia Resources Authority, Infrastructure Rev., “B”, 5%, 11/01/38 | 2,600,000 | 2,820,818 | ||||||
Virginia Resources Authority, Infrastructure Rev., Pooled Financing Program, 5.25%, 11/01/18 (c) | 105,000 | 124,194 | ||||||
Virginia Resources Authority, Infrastructure Rev., Pooled Financing Program, 5%, 11/01/21 (c) | 40,000 | 47,994 | ||||||
Virginia Resources Authority, Infrastructure Rev., Pooled Financing Program, “B”, 5%, 11/01/25 (u) | 1,245,000 | 1,442,793 | ||||||
Virginia Resources Authority, Infrastructure Rev., Pooled Financing Program, “B”, 5%, 11/01/27 (u) | 5,755,000 | 6,597,014 | ||||||
Virginia Resources Authority, Infrastructure Rev., Pooled Financing Program, “B”, 5%, 11/01/28 (u) | 3,000,000 | 3,417,000 | ||||||
Virginia Resources Authority, Infrastructure Rev., Unrefunded Balance, 5%, 11/01/25 | 1,555,000 | 1,802,043 | ||||||
Virginia Resources Authority, Water & Sewer Systems Rev. (Turkahoe Creek Project), Capital Appreciation, 0%, 11/01/33 | 2,245,000 | 983,579 | ||||||
Virginia Resources Authority, Water & Sewer Systems Rev. (Turkahoe Creek Project), Capital Appreciation, 0%, 11/01/34 | 2,250,000 | 931,860 | ||||||
Virginia Resources Authority, Water & Sewer Systems Rev. (Turkahoe Creek Project), Capital Appreciation, 0%, 11/01/35 | 1,950,000 | 767,228 | ||||||
Virginia Resources Authority, Water & Sewer Systems Rev. (Turkahoe Creek Project), Capital Appreciation, 0%, 11/01/36 | 1,250,000 | 462,763 | ||||||
$ | 53,405,484 | |||||||
Total Municipal Bonds (Identified Cost, $275,638,408) | $ | 283,781,477 | ||||||
Money Market Funds - 1.1% | ||||||||
MFS Institutional Money Market Portfolio, 0.09%, at Cost and Net Asset Value (v) | 3,097,091 | $ | 3,097,091 | |||||
Total Investments (Identified Cost, $278,735,499) | $ | 286,878,568 | ||||||
Other Assets, Less Liabilities - (0.6)% | (1,808,824) | |||||||
Net Assets - 100.0% | $ | 285,069,744 |
See Portfolio Footnotes and Notes to Financial Statements
55
Table of Contents
PORTFOLIO OF INVESTMENTS
3/31/14
MFS WEST VIRGINIA MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
Municipal Bonds - 94.7% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
General Obligations - General Purpose - 4.4% | ||||||||
Guam Government, “A”, 6.75%, 11/15/29 | $ | 35,000 | $ | 37,064 | ||||
Guam Government, “A”, 5.25%, 11/15/37 | 250,000 | 227,053 | ||||||
Guam Government, “A”, 7%, 11/15/39 | 45,000 | 47,664 | ||||||
Memphis, TN, Refunding General Improvement, “B”, 5%, 4/01/31 | 150,000 | 168,972 | ||||||
State of Illinois, 5.5%, 7/01/33 | 120,000 | 129,739 | ||||||
State of Illinois, 5.5%, 7/01/38 | 365,000 | 391,473 | ||||||
State of West Virginia, 4%, 6/01/22 | 2,000,000 | 2,173,840 | ||||||
State of West Virginia, 4%, 6/01/23 | 2,000,000 | 2,152,500 | ||||||
$ | 5,328,305 | |||||||
General Obligations - Schools - 8.2% | ||||||||
Hancock County, WV, Board of Education, 5%, 5/01/19 | $ | 1,130,000 | $ | 1,285,872 | ||||
Hancock County, WV, Board of Education, 4.5%, 5/01/32 | 1,405,000 | 1,460,188 | ||||||
Hardy County, WV, Board of Education, 3%, 6/01/29 | 570,000 | 514,892 | ||||||
Marshall County, WV, Board of Education, 5%, 5/01/20 | 600,000 | 662,544 | ||||||
Monongalia County, WV, Board of Education, 5%, 5/01/31 | 2,000,000 | 2,181,520 | ||||||
Putnam County, WV, Board of Education, 4%, 5/01/20 | 2,500,000 | 2,781,750 | ||||||
Putnam County, WV, Board of Education, 4%, 5/01/25 | 1,000,000 | 1,056,870 | ||||||
$ | 9,943,636 | |||||||
Healthcare Revenue - Hospitals - 14.4% | ||||||||
Escambia County, FL, Health Facilities Authority (Baptist Hospital, Inc.), “A”, 6%, 8/15/36 | $ | 725,000 | $ | 768,116 | ||||
Illinois Finance Authority Rev. (Provena Health), “A”, 6%, 5/01/28 | 450,000 | 482,562 | ||||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 7%, 8/15/44 | 420,000 | 459,904 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 5.75%, 6/01/25 | 340,000 | 369,672 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6.375%, 6/01/40 | 410,000 | 438,872 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6.5%, 3/01/45 | 290,000 | 311,527 | ||||||
Louisville & Jefferson County, KY, Metropolitan Government Healthcare Systems Rev. (Norton Healthcare, Inc.), 5.25%, 10/01/36 | 725,000 | 732,243 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Caregroup, Inc.), 5.125%, 7/01/38 | 675,000 | 692,665 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Michigan Hospital Finance Authority Rev. (Henry Ford Health System), 5.75%, 11/15/39 | $ | 855,000 | $ | 891,962 | ||||
Monongalia County, WV, Building Commission Hospital Rev. (Monongalia General Hospital), 6.5%, 7/01/41 | 1,100,000 | 1,204,742 | ||||||
Princeton, WV, Hospital Rev. (Princeton Community Hospital), “A”, 5%, 5/01/27 | 750,000 | 765,960 | ||||||
West Virginia Hospital Finance Authority, Hospital Rev. (Camden Clark Memorial Hospital), ASSD GTY, 5.875%, 2/15/34 | 1,000,000 | 1,080,740 | ||||||
West Virginia Hospital Finance Authority, Hospital Rev. (Charleston Area Medical Center), “A”, ETM, 6.5%, 9/01/23 (c) | 2,000,000 | 2,500,820 | ||||||
West Virginia Hospital Finance Authority, Hospital Rev. (Health Systems Obligations), 5.75%, 1/01/39 | 1,000,000 | 1,012,790 | ||||||
West Virginia Hospital Finance Authority, Hospital Rev. (Thomas Health System), 6.5%, 10/01/38 | 500,000 | 495,165 | ||||||
West Virginia Hospital Finance Authority, Hospital Rev. (United Hospital Center, Inc.), “A”, AMBAC, 5%, 6/01/22 | 2,500,000 | 2,606,450 | ||||||
West Virginia Hospital Finance Authority, Hospital Rev. (West Virginia United Health System), “A”, 5.5%, 6/01/44 | 1,460,000 | 1,566,259 | ||||||
West Virginia Hospital Finance Authority, Hospital Rev. (West Virginia United Health System), “E”, 5.625%, 6/01/35 | 1,000,000 | 1,061,430 | ||||||
$ | 17,441,879 | |||||||
Industrial Revenue - Other - 0.3% | ||||||||
Liberty, NY, Development Corp. Rev. (Goldman Sachs Headquarters), 5.25%, 10/01/35 | $ | 310,000 | $ | 340,458 | ||||
Miscellaneous Revenue - Other - 11.1% | ||||||||
Florida Citizens Property Insurance Corp., “A-1”, 5%, 6/01/20 | $ | 605,000 | $ | 696,815 | ||||
Indiana Finance Authority Rev., (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/40 | 140,000 | 139,786 | ||||||
Indiana Finance Authority Rev., (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/44 | 215,000 | 212,014 | ||||||
Miami-Dade County, FL, Special Obligation, “B”, 5%, 10/01/35 | 160,000 | 168,016 | ||||||
New York Liberty Development Corp. Liberty Rev., (7 World Trade Center Project), 5%, 9/15/40 | 1,085,000 | 1,162,057 | ||||||
West Virginia Building Commission, Lease Rev. (WV Regional Jail), “A”, AMBAC, 5.375%, 7/01/18 | 8,040,000 | 8,718,817 |
56
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Miscellaneous Revenue - Other - continued | ||||||||
West Virginia, Higher Education Policy Commission Rev. (Community & Technology-Capital Improvement), “A”, 5%, 7/01/39 | $ | 2,200,000 | $ | 2,375,340 | ||||
$ | 13,472,845 | |||||||
Sales & Excise Tax Revenue - 2.7% | ||||||||
Guam Government Business Privilege Tax Rev., “A”, 5.25%, 1/01/36 | $ | 335,000 | $ | 346,819 | ||||
Guam Government Business Privilege Tax Rev., “C”, 5%, 11/15/16 | 110,000 | 120,735 | ||||||
Guam Government Business Privilege Tax Rev., “C”, 5%, 11/15/17 | 125,000 | 139,734 | ||||||
Massachusetts Bay Transportation Authority, Sales Tax Rev., “A”, 5%, 7/01/31 | 1,000,000 | 1,161,790 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., 5.25%, 8/01/57 | 1,015,000 | 817,349 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “C”, 5%, 8/01/40 | 805,000 | 659,730 | ||||||
$ | 3,246,157 | |||||||
Single Family Housing - Local - 1.4% | ||||||||
West Virginia Housing Development Fund, “C”, 4.7%, 11/01/35 | $ | 635,000 | $ | 648,926 | ||||
West Virginia Housing Development Fund, “C”, 4.9%, 11/01/43 | 1,020,000 | 1,042,899 | ||||||
$ | 1,691,825 | |||||||
Single Family Housing - State - 0.3% | ||||||||
West Virginia Housing Development Fund Rev., “A”, 2.95%, 11/01/21 | $ | 300,000 | $ | 300,948 | ||||
State & Local Agencies - 9.7% | ||||||||
FYI Properties Lease Rev. (Washington State Project), 5.5%, 6/01/34 | $ | 545,000 | $ | 588,551 | ||||
Massachusetts College Building Authority Rev., “A”, 5%, 5/01/31 | 140,000 | 157,133 | ||||||
University of Kentucky, General Receipts, “A”, 5%, 4/01/36 | 80,000 | 88,412 | ||||||
University of Kentucky, General Receipts, “A”, 5%, 4/01/37 | 150,000 | 165,246 | ||||||
West Virginia Building Commission, Lease Rev., “B”, AMBAC, 5.375%, 7/01/18 | 1,880,000 | 2,038,804 | ||||||
West Virginia Economic Development Authority, Auto Lease Rev., 5.2%, 5/01/33 | 1,000,000 | 1,006,340 | ||||||
West Virginia Economic Development Authority, Lease Rev. (Correctional Juvenile Public Safety Facilities), 5%, 6/01/22 | 1,000,000 | 1,138,340 | ||||||
West Virginia Economic Development Authority, Lease Rev. (Correctional Juvenile Public Safety Facilities), “A”, NATL, 5%, 6/01/14 (c) | 1,530,000 | 1,541,949 | ||||||
West Virginia Economic Development Authority, Lease Rev. (Correctional Juvenile Public Safety Facilities), “A”, 5%, 6/01/29 | 2,000,000 | 2,200,840 |
Issuer | Shares/Par | Value ($) | ||||||
State & Local Agencies - continued | ||||||||
West Virginia Economic Development Authority, Lease Rev. (State Office Building), “B”, NATL, 5.25%, 1/01/25 | $ | 645,000 | $ | 646,238 | ||||
West Virginia Economic Development Authority, Lease Rev. (State Office Building), “B”, NATL, 5.25%, 1/01/30 | 1,355,000 | 1,357,141 | ||||||
West Virginia Hospital Finance Authority, Hospital Rev. (Veterans Nursing Home), 5.5%, 3/01/34 | 795,000 | 795,119 | ||||||
$ | 11,724,113 | |||||||
Tax - Other - 8.4% | ||||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/24 | $ | 160,000 | $ | 169,045 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/29 | 55,000 | 57,555 | ||||||
Virgin Islands Public Finance Authority Rev. (Diageo), “A”, 6.625%, 10/01/29 | 360,000 | 385,830 | ||||||
Virgin Islands Public Finance Authority Rev., “A-1”, 5%, 10/01/29 | 110,000 | 112,705 | ||||||
Virgin Islands Public Finance Authority Rev., “A-1”, 5%, 10/01/39 | 120,000 | 119,485 | ||||||
Virgin Islands Public Finance Authority Rev., “B”, 5%, 10/01/25 | 110,000 | 115,988 | ||||||
West Virginia Economic Development Authority, Lottery Rev., “A”, 5%, 6/15/40 | 2,475,000 | 2,673,025 | ||||||
West Virginia Housing Development Fund, “A”, 3.8%, 11/01/24 | 1,200,000 | 1,233,756 | ||||||
West Virginia School Building Authority Rev., “A”, FGIC, 5%, 7/01/20 | 2,000,000 | 2,206,100 | ||||||
West Virginia School Building Authority, Excess Lottery Rev., 5%, 7/01/26 | 1,000,000 | 1,105,140 | ||||||
West Virginia School Building Authority, Excess Lottery Rev., 5%, 7/01/28 | 750,000 | 822,180 | ||||||
West Virginia School Building Authority, Excess Lottery Rev., “B”, 5%, 7/01/30 | 1,000,000 | 1,110,070 | ||||||
$ | 10,110,879 | |||||||
Tax Assessment - 0.6% | ||||||||
Morgantown, WV, Tax Increment Rev., Parking Garage Project, “A”, 5%, 6/01/33 | $ | 455,000 | $ | 448,352 | ||||
Ohio County, WV, Commission Tax Increment Rev. (Fort Henry Centre), “A”, 5.85%, 6/01/34 | 300,000 | 305,331 | ||||||
$ | 753,683 | |||||||
Tobacco - 1.6% | ||||||||
Illinois Railsplitter Tobacco Settlement Authority, 6%, 6/01/28 | $ | 620,000 | $ | 698,982 | ||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.75%, 6/01/34 | 190,000 | 143,498 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 5%, 6/01/41 | 990,000 | 744,916 | ||||||
New Jersey Tobacco Settlement Financing Corp., Capital Appreciation, “1-B”, 0%, 6/01/41 | 1,670,000 | 402,570 | ||||||
New Jersey Tobacco Settlement Financing Corp., Capital Appreciation, “1-C”, 0%, 6/01/41 | 20,000 | 4,746 | ||||||
$ | 1,994,712 |
57
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Toll Roads - 0.9% | ||||||||
Texas Private Activity Surface Transportation Corp. Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 7%, 12/31/38 | $ | 155,000 | $ | 175,795 | ||||
Texas Private Activity Surface Transportation Corp. Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 6.75%, 6/30/43 | 120,000 | 132,943 | ||||||
Triborough Bridge & Tunnel Authority Rev., NY, Capital Appreciation, “A”, 0%, 11/15/29 | 580,000 | 298,317 | ||||||
Triborough Bridge & Tunnel Authority Rev., NY, Capital Appreciation, “A”, 0%, 11/15/31 | 1,025,000 | 465,945 | ||||||
$ | 1,073,000 | |||||||
Transportation - Special Tax - 0.4% | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “AA-1”, AGM, 4.95%, 7/01/26 | $ | 560,000 | $ | 527,061 | ||||
Universities - Colleges - 17.6% | ||||||||
Fairmont State College, WV, Board of Governors Rev., “A”, 5%, 6/01/32 | $ | 4,035,000 | $ | 4,304,578 | ||||
Marshall University, WV, University Rev., 5%, 5/01/30 | 2,000,000 | 2,162,920 | ||||||
Marshall University, WV, University Rev., 5%, 5/01/41 | 1,000,000 | 1,054,150 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical, & Environmental Control Facilities Financing Authority, Educational Facilities Rev. (University Plaza), “A”, NATL, 5%, 7/01/21 | 1,270,000 | 1,207,592 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical, & Environmental Control Facilities Financing Authority, Higher Education Rev. (International American University of Puerto Rico Project), 5%, 10/01/31 | 110,000 | 98,074 | ||||||
Shepherd University Board of Governors, WV Rev. (Residence Facilities Projects), NATL, 5%, 6/01/35 | 1,675,000 | 1,710,946 | ||||||
West Virginia Higher Education Policy Commission Rev. (Higher Education Facilities), “A”, 5%, 4/01/26 | 1,600,000 | 1,810,160 | ||||||
West Virginia School Building Authority Rev., “A”, NATL, 5%, 7/01/21 | 1,250,000 | 1,376,313 | ||||||
West Virginia University Board of Governors University Rev., 3.375%, 10/01/37 | 1,000,000 | 825,170 | ||||||
West Virginia University Rev. (West Virginia University Project), “A”, 5%, 10/01/35 | 1,000,000 | 1,087,940 | ||||||
West Virginia University, University Systems Rev., “A”, NATL, 5.5%, 4/01/20 | 1,700,000 | 2,027,131 | ||||||
West Virginia University, University Systems Rev., “A”, NATL, 5.25%, 4/01/28 | 3,035,000 | 3,622,424 | ||||||
$ | 21,287,398 | |||||||
Utilities - Investor Owned - 1.0% | ||||||||
Michigan Strategic Fund Ltd. Obligation Rev. (Detroit Edison Co.), 5.625%, 7/01/20 | $ | 470,000 | $ | 557,096 |
Issuer | Shares/Par | Value ($) | ||||||
Utilities - Investor Owned - continued | ||||||||
Michigan Strategic Fund Ltd. Obligation Rev. (Detroit Edison Co.), 5.5%, 8/01/29 (b) | $ | 340,000 | $ | 373,045 | ||||
Pleasants County, WV, Pollution Control Rev. (Allegheny Community), “F”, 5.25%, 10/15/37 | 300,000 | 301,722 | ||||||
$ | 1,231,863 | |||||||
Utilities - Municipal Owned - 0.3% | ||||||||
Guam Power Authority Rev., “A”, 5.5%, 10/01/30 | $ | 325,000 | $ | 343,125 | ||||
Utilities - Other - 1.8% | ||||||||
California M-S-R Energy Authority Gas Rev., “A”, 6.5%, 11/01/39 | $ | 615,000 | $ | 773,356 | ||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/19 | 480,000 | 539,424 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/21 | 245,000 | 273,445 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/22 | 125,000 | 139,658 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “C”, 5%, 2/01/21 | 290,000 | 322,341 | ||||||
Texas Gas Acquisition & Supply Corp III., Gas Supply Rev., 5%, 12/15/31 | 70,000 | 71,131 | ||||||
$ | 2,119,355 | |||||||
Water & Sewer Utility Revenue - 9.6% | ||||||||
Berkeley County, WV, Public Service Sewer District, “A”, 5%, 3/01/47 | $ | 1,000,000 | $ | 1,008,570 | ||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, 6.125%, 7/01/24 | 1,000,000 | 793,520 | ||||||
Fairmont, WV, Waterworks Rev., AMBAC, 5.25%, 7/01/22 | 200,000 | 216,522 | ||||||
Guam Government Waterworks Authority, Water & Wastewater System Rev., 5.625%, 7/01/40 | 515,000 | 533,432 | ||||||
Mississippi Development Bank Special Obligation (City of Jackson Water and Sewer System Rev. Bond Project), AGM, 6.875%, 12/01/40 | 75,000 | 94,260 | ||||||
West Virginia Water Development Authority Rev. (Loan Program III), “A”, 3.75%, 7/01/39 | 2,000,000 | 1,709,500 | ||||||
West Virginia Water Development Authority Rev. (Loan Program III), “B”, 3.75%, 7/01/40 | 1,000,000 | 849,760 | ||||||
West Virginia Water Development Authority Rev. (Loan Program IV), “A”, AGM, 5%, 11/01/44 | 2,000,000 | 2,065,520 | ||||||
West Virginia Water Development Authority Rev. (Loan Program IV), “B”, AMBAC, 5.125%, 11/01/24 | 2,140,000 | 2,234,117 | ||||||
Wheeling, WV, Combined Waterworks and Sewerage System Rev., 5%, 6/01/38 | 1,000,000 | 1,056,370 | ||||||
Wheeling, WV, Combined Waterworks and Sewerage System Rev., 5%, 6/01/43 | 1,000,000 | 1,048,620 | ||||||
$ | 11,610,191 | |||||||
Total Municipal Bonds (Identified Cost, $111,499,749) | $ | 114,541,433 |
58
Table of Contents
Portfolio of Investments – continued
Money Market Funds - 0.0% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
MFS Institutional Money Market Portfolio, 0.09%, at Cost and Net Asset Value (v) | 99 | $ | 99 | |||||
Total Investments (Identified Cost, $111,499,848) | $ | 114,541,532 | ||||||
Other Assets, Less Liabilities - 5.3% | 6,469,505 | |||||||
Net Assets - 100.0% | $ | 121,011,037 |
See Portfolio Footnotes and Notes to Financial Statements
Portfolio Footnotes:
(a) | Non-income producing security. |
(b) | Mandatory tender date is earlier than stated maturity date. |
(c) | Refunded bond. |
(d) | In default. Interest and/or scheduled principal payment(s) have been missed. |
(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 for the MFS New York Municipal Bond Fund was $702,960, representing 0.4% of net assets. |
(p) | Primary inverse floater. |
(u) | Underlying security deposited into special purpose trust (“the trust”) by investment banker upon creation of self-deposited inverse floaters. |
(v) | Underlying affiliated fund 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:
COP | Certificate of Participation | |||||
ETM | Escrowed to Maturity | |||||
FRN | Floating Rate Note. Interest rate resets periodically and may not be the rate reported at period end. | |||||
LOC | Letter of Credit | |||||
Insurers | Inverse Floaters | |||||
AGM | Assured Guaranty Municipal | RITES | Residual Interest Tax-Exempt Security | |||
AMBAC | AMBAC Indemnity Corp. | |||||
ASSD GTY | Assured Guaranty Insurance Co. | |||||
BAM | Build America Mutual | |||||
CIFG | CDC IXIX Financial Guaranty | |||||
FGIC | Financial Guaranty Insurance Co. | |||||
FHA | Federal Housing Administration | |||||
FNMA | Federal National Mortgage Assn. | |||||
GNMA | Government National Mortgage Assn. | |||||
NATL | National Public Finance Guarantee Corp. | |||||
SYNCORA | Syncora Guarantee Inc. |
See Notes to Financial Statements
59
Table of Contents
Financial Statements
STATEMENTS OF ASSETS AND LIABILITIES
At 3/31/14
These statements represent each fund’s balance sheet, which details the assets and liabilities comprising the total value of each fund.
Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | |||||||||||||
Assets | ||||||||||||||||
Investments – | ||||||||||||||||
Non-affiliated issuers, at identified cost | $81,658,920 | $171,508,517 | $318,261,449 | $108,483,468 | ||||||||||||
Underlying affiliated funds, at cost and net asset value | 1,231,523 | 2,613,642 | 435,865 | 3,151,391 | ||||||||||||
Total investments, at identified cost | $82,890,443 | $174,122,159 | $318,697,314 | $111,634,859 | ||||||||||||
Unrealized appreciation (depreciation) | 3,823,392 | 7,868,533 | 15,858,215 | 3,956,333 | ||||||||||||
Total investments, at value | $86,713,835 | $181,990,692 | $334,555,529 | $115,591,192 | ||||||||||||
Cash | — | — | 3,277,520 | — | ||||||||||||
Receivables for | ||||||||||||||||
Investments sold | 20,204 | 1,897,639 | 1,040,000 | 1,662,021 | ||||||||||||
Fund shares sold | 1,551 | 6,593 | 356,788 | 71,890 | ||||||||||||
Interest | 1,090,628 | 2,595,239 | 4,727,383 | 1,769,420 | ||||||||||||
Other assets | 630 | 1,130 | 1,847 | 810 | ||||||||||||
Total assets | $87,826,848 | $186,491,293 | $343,959,067 | $119,095,333 | ||||||||||||
Liabilities | ||||||||||||||||
Payables for | ||||||||||||||||
Distributions | $38,747 | $93,530 | $169,552 | $48,171 | ||||||||||||
Investments purchased | 124,110 | 896,935 | 2,567,118 | 1,170,353 | ||||||||||||
Fund shares reacquired | 73,481 | 438,277 | 722,813 | 328,010 | ||||||||||||
Payable to affiliates | ||||||||||||||||
Investment adviser | 4,342 | 9,045 | 16,524 | 5,789 | ||||||||||||
Shareholder servicing costs | 52,385 | 91,109 | 263,488 | 76,190 | ||||||||||||
Distribution and service fees | 619 | 6,423 | 12,833 | 3,719 | ||||||||||||
Payable for independent Trustees’ compensation | 3,431 | 4,434 | 6,910 | 3,398 | ||||||||||||
Accrued expenses and other liabilities | 66,311 | 75,900 | 87,263 | 74,052 | ||||||||||||
Total liabilities | $363,426 | $1,615,653 | $3,846,501 | $1,709,682 | ||||||||||||
Net assets | $87,463,422 | $184,875,640 | $340,112,566 | $117,385,651 | ||||||||||||
Net assets consist of | ||||||||||||||||
Paid-in capital | $85,705,434 | $183,272,903 | $334,741,902 | $118,135,187 | ||||||||||||
Unrealized appreciation (depreciation) on investments | 3,823,392 | 7,868,533 | 15,858,215 | 3,956,333 | ||||||||||||
Accumulated net realized gain (loss) on investments | (2,113,766 | ) | (6,252,193 | ) | (10,592,123 | ) | (4,716,409 | ) | ||||||||
Accumulated undistributed (distributions in excess of) net investment income | 48,362 | (13,603 | ) | 104,572 | 10,540 | |||||||||||
Net assets | $87,463,422 | $184,875,640 | $340,112,566 | $117,385,651 |
60
Table of Contents
Statements of Assets and Liabilities – continued
Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | |||||||||||||
Net assets | ||||||||||||||||
Class A | $85,404,612 | $155,149,054 | $278,716,500 | $110,449,309 | ||||||||||||
Class B | 2,058,810 | 5,501,240 | 5,081,584 | 6,936,342 | ||||||||||||
Class C | — | 24,225,346 | 56,314,482 | — | ||||||||||||
Total net assets | $87,463,422 | $184,875,640 | $340,112,566 | $117,385,651 | ||||||||||||
Shares of beneficial interest outstanding | ||||||||||||||||
Class A | 8,834,271 | 14,451,362 | 24,075,738 | 11,053,074 | ||||||||||||
Class B | 212,717 | 513,770 | 439,506 | 692,432 | ||||||||||||
Class C | — | 2,259,201 | 4,867,383 | — | ||||||||||||
Total shares of beneficial interest outstanding | 9,046,988 | 17,224,333 | 29,382,627 | 11,745,506 | ||||||||||||
Class A shares | ||||||||||||||||
Net asset value per share | ||||||||||||||||
(net assets/shares of beneficial interest outstanding) | $9.67 | $10.74 | $11.58 | $9.99 | ||||||||||||
Offering price per share (100 / 95.25 × net asset value per share) | $10.15 | $11.28 | $12.16 | $10.49 | ||||||||||||
Class B shares | ||||||||||||||||
Net asset value and offering price per share | ||||||||||||||||
(net assets/shares of beneficial interest outstanding) | $9.68 | $10.71 | $11.56 | $10.02 | ||||||||||||
Class C shares | ||||||||||||||||
Net asset value and offering price per share | ||||||||||||||||
(net assets/shares of beneficial interest outstanding) | $— | $10.72 | $11.57 | $— |
On sales of $50,000 or more, the maximum offering price of Class A shares is reduced. A contingent deferred sales charge may be imposed on redemptions of Class A, Class B, and Class C shares.
See Notes to Financial Statements
61
Table of Contents
Statements of Assets and Liabilities – continued
At 3/31/14 | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | ||||||||||||
Assets | ||||||||||||||||
Investments – | ||||||||||||||||
Non-affiliated issuers, at identified cost | $161,032,323 | $99,207,054 | $275,638,408 | $111,499,749 | ||||||||||||
Underlying affiliated funds, at cost and net asset value | 2,792,200 | 1,662,126 | 3,097,091 | 99 | ||||||||||||
Total investments, at identified cost | $163,824,523 | $100,869,180 | $278,735,499 | $111,499,848 | ||||||||||||
Unrealized appreciation (depreciation) | 4,265,932 | 3,087,745 | 8,143,069 | 3,041,684 | ||||||||||||
Total investments, at value | $168,090,455 | $103,956,925 | $286,878,568 | $114,541,532 | ||||||||||||
Cash | — | — | 1,024,583 | 5,541,947 | ||||||||||||
Receivables for | ||||||||||||||||
Investments sold | 2,332,172 | 920,240 | — | 120,000 | ||||||||||||
Fund shares sold | 286,566 | 45,415 | 563,593 | 46,375 | ||||||||||||
Interest | 2,359,025 | 1,405,134 | 3,988,200 | 1,729,482 | ||||||||||||
Receivable from investment adviser | — | — | — | 4,398 | ||||||||||||
Other assets | 1,086 | 758 | 1,639 | 854 | ||||||||||||
Total assets | $173,069,304 | $106,328,472 | $292,456,583 | $121,984,588 | ||||||||||||
Liabilities | ||||||||||||||||
Payables for | ||||||||||||||||
Distributions | $52,066 | $39,394 | $153,133 | $28,628 | ||||||||||||
Investments purchased | 1,000,000 | — | 1,558,233 | 583,020 | ||||||||||||
Interest expense and fees | — | — | 14,634 | — | ||||||||||||
Fund shares reacquired | 259,447 | 146,319 | 336,808 | 179,954 | ||||||||||||
Payable to the holders of the floating rate certificates from trust assets | — | — | 4,998,734 | — | ||||||||||||
Payable to affiliates | ||||||||||||||||
Investment adviser | 8,391 | 5,238 | 13,849 | — | ||||||||||||
Shareholder servicing costs | 111,543 | 68,118 | 212,155 | 104,965 | ||||||||||||
Distribution and service fees | 4,544 | 2,867 | 9,365 | 3,057 | ||||||||||||
Payable for independent Trustees’ compensation | 6,920 | 4,410 | 6,926 | 6,918 | ||||||||||||
Accrued expenses and other liabilities | 73,247 | 66,877 | 83,002 | 67,009 | ||||||||||||
Total liabilities | $1,516,158 | $333,223 | $7,386,839 | $973,551 | ||||||||||||
Net assets | $171,553,146 | $105,995,249 | $285,069,744 | $121,011,037 | ||||||||||||
Net assets consist of | ||||||||||||||||
Paid-in capital | $174,040,563 | $105,524,196 | $284,236,743 | $122,003,930 | ||||||||||||
Unrealized appreciation (depreciation) on investments | 4,265,932 | 3,087,745 | 8,143,069 | 3,041,684 | ||||||||||||
Accumulated net realized gain (loss) on investments | (6,772,619 | ) | (3,099,322 | ) | (7,236,951 | ) | (4,023,896 | ) | ||||||||
Accumulated undistributed (distributions in excess of) net investment income | 19,270 | 482,630 | (73,117 | ) | (10,681 | ) | ||||||||||
Net assets | $171,553,146 | $105,995,249 | $285,069,744 | $121,011,037 |
62
Table of Contents
Statements of Assets and Liabilities – continued
South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | |||||||||||||
Net assets | ||||||||||||||||
Class A | $166,427,808 | $104,102,307 | $257,694,532 | $119,720,519 | ||||||||||||
Class B | 5,125,338 | 1,892,942 | 2,212,496 | 1,290,518 | ||||||||||||
Class C | — | — | 25,162,716 | — | ||||||||||||
Total net assets | $171,553,146 | $105,995,249 | $285,069,744 | $121,011,037 | ||||||||||||
Shares of beneficial interest outstanding | ||||||||||||||||
Class A | 14,130,859 | 10,138,183 | 23,313,744 | 10,951,799 | ||||||||||||
Class B | 435,412 | 184,497 | 200,288 | 118,102 | ||||||||||||
Class C | — | — | 2,277,031 | — | ||||||||||||
Total shares of beneficial interest outstanding | 14,566,271 | 10,322,680 | 25,791,063 | 11,069,901 | ||||||||||||
Class A shares | ||||||||||||||||
Net asset value per share | ||||||||||||||||
(net assets/shares of beneficial interest outstanding) | $11.78 | $10.27 | $11.05 | $10.93 | ||||||||||||
Offering price per share (100 / 95.25 × net asset value per share) | $12.37 | $10.78 | $11.60 | $11.48 | ||||||||||||
Class B shares | ||||||||||||||||
Net asset value and offering price per share | ||||||||||||||||
(net assets/shares of beneficial interest outstanding) | $11.77 | $10.26 | $11.05 | $10.93 | ||||||||||||
Class C shares | ||||||||||||||||
Net asset value and offering price per share | ||||||||||||||||
(net assets/shares of beneficial interest outstanding) | $— | $— | $11.05 | $— |
On sales of $50,000 or more, the maximum offering price of Class A shares is reduced. A contingent deferred sales charge may be imposed on redemptions of Class A, Class B, and Class C shares.
See Notes to Financial Statements
63
Table of Contents
Financial Statements
Year ended 3/31/14
These statements describe how much each fund earned in investment income and accrued in expenses. They also describe any gains or losses generated by each fund’s operations.
Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | |||||||||||||
Net investment income | ||||||||||||||||
Interest | $4,574,569 | $9,678,510 | $17,642,688 | $6,347,885 | ||||||||||||
Dividends from underlying affiliated funds | 1,175 | 4,705 | 4,229 | 3,077 | ||||||||||||
Total investment income | $4,575,744 | $9,683,215 | $17,646,917 | $6,350,962 | ||||||||||||
Expenses | ||||||||||||||||
Management fee | $441,083 | $903,731 | $1,764,206 | $611,349 | ||||||||||||
Distribution and service fees | 262,263 | 764,227 | 1,546,789 | 403,739 | ||||||||||||
Shareholder servicing costs | 70,767 | 137,310 | 358,969 | 111,168 | ||||||||||||
Administrative services fee | 23,262 | 35,537 | 58,450 | 27,794 | ||||||||||||
Independent Trustees’ compensation | 4,206 | 8,227 | 9,880 | 4,545 | ||||||||||||
Custodian fee | 28,266 | 44,376 | 63,897 | 39,899 | ||||||||||||
Shareholder communications | 7,460 | 13,206 | 21,192 | 13,208 | ||||||||||||
Audit and tax fees | 51,050 | 51,064 | 51,093 | 51,055 | ||||||||||||
Legal fees | 11,474 | 12,739 | 13,795 | 11,983 | ||||||||||||
Miscellaneous | 50,806 | 68,209 | 79,927 | 54,977 | ||||||||||||
Total expenses | $950,637 | $2,038,626 | $3,968,198 | $1,329,717 | ||||||||||||
Fees paid indirectly | (6 | ) | (2 | ) | (7 | ) | (2 | ) | ||||||||
Reduction of expenses by investment adviser and distributor | (154,198 | ) | (10,997 | ) | (17,715 | ) | (204,890 | ) | ||||||||
Net expenses | $796,433 | $2,027,627 | $3,950,476 | $1,124,825 | ||||||||||||
Net investment income | $3,779,311 | $7,655,588 | $13,696,441 | $5,226,137 | ||||||||||||
Realized and unrealized gain (loss) on investments | ||||||||||||||||
Realized gain (loss) (identified cost basis) | ||||||||||||||||
Investment transactions | $(2,662,160 | ) | $(5,626,805 | ) | $(12,910,869 | ) | $(4,162,626 | ) | ||||||||
Change in unrealized appreciation (depreciation) | ||||||||||||||||
Investments | $(3,823,947 | ) | $(10,331,823 | ) | $(17,431,068 | ) | $(6,292,541 | ) | ||||||||
Net realized and unrealized gain (loss) on investments | $(6,486,107 | ) | $(15,958,628 | ) | $(30,341,937 | ) | $(10,455,167 | ) | ||||||||
Change in net assets from operations | $(2,706,796 | ) | $(8,303,040 | ) | $(16,645,496 | ) | $(5,229,030 | ) |
See Notes to Financial Statements
64
Table of Contents
Statements of Operations – continued
Year ended 3/31/14 | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | ||||||||||||
Net investment income | ||||||||||||||||
Interest | $8,604,858 | $5,089,749 | $14,356,332 | $6,131,118 | ||||||||||||
Dividends from underlying affiliated funds | 4,031 | 2,488 | 3,996 | 2,294 | ||||||||||||
Total investment income | $8,608,889 | $5,092,237 | $14,360,328 | $6,133,412 | ||||||||||||
Expenses | ||||||||||||||||
Management fee | $865,647 | $525,687 | $1,426,225 | $616,516 | ||||||||||||
Distribution and service fees | 526,166 | 309,249 | 1,036,292 | 354,118 | ||||||||||||
Shareholder servicing costs | 154,543 | 98,428 | 280,508 | 135,359 | ||||||||||||
Administrative services fee | 34,541 | 25,508 | 49,423 | 27,909 | ||||||||||||
Independent Trustees’ compensation | 8,819 | 4,473 | 9,595 | 4,974 | ||||||||||||
Custodian fee | 41,005 | 30,004 | 56,597 | 31,058 | ||||||||||||
Shareholder communications | 12,301 | 7,899 | 17,971 | 8,096 | ||||||||||||
Audit and tax fees | 51,062 | 51,051 | 51,082 | 51,054 | ||||||||||||
Legal fees | 11,015 | 11,038 | 9,414 | 10,857 | ||||||||||||
Interest expense and fees | — | — | 35,773 | — | ||||||||||||
Miscellaneous | 57,446 | 53,710 | 84,023 | 52,322 | ||||||||||||
Total expenses | $1,762,545 | $1,117,047 | $3,056,903 | $1,292,263 | ||||||||||||
Fees paid indirectly | (3 | ) | (1 | ) | (29 | ) | (2 | ) | ||||||||
Reduction of expenses by investment adviser and distributor | (7,931 | ) | (3,688 | ) | (10,879 | ) | (49,921 | ) | ||||||||
Net expenses | $1,754,611 | $1,113,358 | $3,045,995 | $1,242,340 | ||||||||||||
Net investment income | $6,854,278 | $3,978,879 | $11,314,333 | $4,891,072 | ||||||||||||
Realized and unrealized gain (loss) on investments | ||||||||||||||||
Realized gain (loss) (identified cost basis) | ||||||||||||||||
Investment transactions | $(6,334,965 | ) | $(3,421,421 | ) | $(9,042,377 | ) | $(4,033,249 | ) | ||||||||
Change in unrealized appreciation (depreciation) | ||||||||||||||||
Investments | $(9,172,515 | ) | $(5,530,730 | ) | $(11,730,364 | ) | $(5,420,014 | ) | ||||||||
Net realized and unrealized gain (loss) on investments | $(15,507,480 | ) | $(8,952,151 | ) | $(20,772,741 | ) | $(9,453,263 | ) | ||||||||
Change in net assets from operations | $(8,653,202 | ) | $(4,973,272 | ) | $(9,458,408 | ) | $(4,562,191 | ) |
See Notes to Financial Statements
65
Table of Contents
Financial Statements
STATEMENTS OF CHANGES IN NET ASSETS
These statements describe the increases and/or decreases in net assets resulting from operations, any distributions, and any shareholder transactions.
Year ended 3/31/14 | Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | ||||||||||||
Change in net assets | ||||||||||||||||
From operations | ||||||||||||||||
Net investment income | $3,779,311 | $7,655,588 | $13,696,441 | $5,226,137 | ||||||||||||
Net realized gain (loss) on investments | (2,662,160 | ) | (5,626,805 | ) | (12,910,869 | ) | (4,162,626 | ) | ||||||||
Net unrealized gain (loss) on investments | (3,823,947 | ) | (10,331,823 | ) | (17,431,068 | ) | (6,292,541 | ) | ||||||||
Change in net assets from operations | $(2,706,796 | ) | $(8,303,040 | ) | $(16,645,496 | ) | $(5,229,030 | ) | ||||||||
Distributions declared to shareholders | ||||||||||||||||
From net investment income | $(3,710,214 | ) | $(7,261,983 | ) | $(12,997,029 | ) | $(4,898,095 | ) | ||||||||
From net realized gain on investments | (340,343 | ) | — | (1,792,728 | ) | — | ||||||||||
Total distributions declared to shareholders | $(4,050,557 | ) | $(7,261,983 | ) | $(14,789,757 | ) | $(4,898,095 | ) | ||||||||
Change in net assets from fund share transactions | $(22,813,757 | ) | $(31,377,132 | ) | $(107,397,080 | ) | $(36,084,012 | ) | ||||||||
Total change in net assets | $(29,571,110 | ) | $(46,942,155 | ) | $(138,832,333 | ) | $(46,211,137 | ) | ||||||||
Net assets | ||||||||||||||||
At beginning of period | 117,034,532 | 231,817,795 | 478,944,899 | 163,596,788 | ||||||||||||
At end of period | $87,463,422 | $184,875,640 | $340,112,566 | $117,385,651 | ||||||||||||
Accumulated undistributed (distributions in excess of) net investment income included in net assets at end of period | $48,362 | $(13,603 | ) | $104,572 | $10,540 | |||||||||||
Year ended 3/31/14 | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | ||||||||||||
Change in net assets | ||||||||||||||||
From operations | ||||||||||||||||
Net investment income | $6,854,278 | $3,978,879 | $11,314,333 | $4,891,072 | ||||||||||||
Net realized gain (loss) on investments | (6,334,965 | ) | (3,421,421 | ) | (9,042,377 | ) | (4,033,249 | ) | ||||||||
Net unrealized gain (loss) on investments | (9,172,515 | ) | (5,530,730 | ) | (11,730,364 | ) | (5,420,014 | ) | ||||||||
Change in net assets from operations | $(8,653,202 | ) | $(4,973,272 | ) | $(9,458,408 | ) | $(4,562,191 | ) | ||||||||
Distributions declared to shareholders | ||||||||||||||||
From net investment income | $(6,574,481 | ) | $(3,839,305 | ) | $(11,082,069 | ) | $(4,610,142 | ) | ||||||||
Change in net assets from fund share transactions | $(41,009,798 | ) | $(21,830,116 | ) | $(69,086,950 | ) | $(24,739,401 | ) | ||||||||
Total change in net assets | $(56,237,481 | ) | $(30,642,693 | ) | $(89,627,427 | ) | $(33,911,734 | ) | ||||||||
Net assets | ||||||||||||||||
At beginning of period | 227,790,627 | 136,637,942 | 374,697,171 | 154,922,771 | ||||||||||||
At end of period | $171,553,146 | $105,995,249 | $285,069,744 | $121,011,037 | ||||||||||||
Accumulated undistributed (distributions in excess of) net investment income included in net assets at end of period | $19,270 | $482,630 | $(73,117 | ) | $(10,681 | ) |
See Notes to Financial Statements
66
Table of Contents
Statements of Changes in Net Assets – continued
Year ended 3/31/13 | Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | ||||||||||||
Change in net assets | ||||||||||||||||
From operations | ||||||||||||||||
Net investment income | $4,517,394 | $8,272,163 | $15,073,570 | $5,768,261 | ||||||||||||
Net realized gain (loss) on investments | 437,217 | 1,039,090 | 2,911,368 | 377,866 | ||||||||||||
Net unrealized gain (loss) on investments | 1,439,006 | 3,976,086 | 6,218,991 | 2,977,615 | ||||||||||||
Change in net assets from operations | $6,393,617 | $13,287,339 | $24,203,929 | $9,123,742 | ||||||||||||
Distributions declared to shareholders | ||||||||||||||||
From net investment income | $(4,322,240 | ) | $(7,854,148 | ) | $(14,357,119 | ) | $(5,483,765 | ) | ||||||||
From net realized gain on investments | (108,083 | ) | — | (2,583,171 | ) | — | ||||||||||
Total distributions declared to shareholders | $(4,430,323 | ) | $(7,854,148 | ) | $(16,940,290 | ) | $(5,483,765 | ) | ||||||||
Change in net assets from fund share transactions | $(1,754,072 | ) | $3,934,666 | $30,199,922 | $16,105,193 | |||||||||||
Total change in net assets | $209,222 | $9,367,857 | $37,463,561 | $19,745,170 | ||||||||||||
Net assets | ||||||||||||||||
At beginning of period | 116,825,310 | 222,449,938 | 441,481,338 | 143,851,618 | ||||||||||||
At end of period | $117,034,532 | $231,817,795 | $478,944,899 | $163,596,788 | ||||||||||||
Accumulated undistributed (distributions in excess of) net investment income included in net assets at end of period | $53,578 | $(6,226 | ) | $150,134 | $19,203 | |||||||||||
Year ended 3/31/13 | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | ||||||||||||
Change in net assets | ||||||||||||||||
From operations | ||||||||||||||||
Net investment income | $7,440,814 | $4,524,901 | $12,904,024 | $5,223,666 | ||||||||||||
Net realized gain (loss) on investments | 552,875 | 4,797 | 590,879 | 286,852 | ||||||||||||
Net unrealized gain (loss) on investments | 2,890,267 | 1,902,189 | 3,799,391 | 768,977 | ||||||||||||
Change in net assets from operations | $10,883,956 | $6,431,887 | $17,294,294 | $6,279,495 | ||||||||||||
Distributions declared to shareholders | ||||||||||||||||
From net investment income | $(7,114,177 | ) | $(4,319,638 | ) | $(12,316,868 | ) | $(4,987,231 | ) | ||||||||
Change in net assets from fund share transactions | $22,483,564 | $14,895,694 | $16,303,441 | $7,621,312 | ||||||||||||
Total change in net assets | $26,253,343 | $17,007,943 | $21,280,867 | $8,913,576 | ||||||||||||
Net assets | ||||||||||||||||
At beginning of period | 201,537,284 | 119,629,999 | 353,416,304 | 146,009,195 | ||||||||||||
At end of period | $227,790,627 | $136,637,942 | $374,697,171 | $154,922,771 | ||||||||||||
Accumulated undistributed (distributions in excess of) net investment income included in net assets at end of period | $(31,310 | ) | $319,131 | $(23,769 | ) | $(4,378 | ) |
See Notes to Financial Statements
67
Table of Contents
Financial Statements
MFS MISSISSIPPI MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund financial performance for the past 5 years. Certain information reflects financial results for a single fund share. The total returns in the table represent the rate by which an investor would have earned (or lost) on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
Years ended 3/31 | ||||||||||||||||||||
Class A | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Net asset value, beginning of period | $10.27 | $10.11 | $9.37 | $9.82 | $9.30 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.38 | $0.39 | $0.39 | $0.41 | $0.41 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.57 | ) | 0.16 | 0.74 | (0.44 | ) | 0.52 | |||||||||||||
Total from investment operations | $(0.19 | ) | $0.55 | $1.13 | $(0.03 | ) | $0.93 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.37 | ) | $(0.38 | ) | $(0.39 | ) | $(0.40 | ) | $(0.41 | ) | ||||||||||
From net realized gain on investments | (0.04 | ) | (0.01 | ) | — | (0.02 | ) | — | ||||||||||||
Total distributions declared to shareholders | $(0.41 | ) | $(0.39 | ) | $(0.39 | ) | $(0.42 | ) | $(0.41 | ) | ||||||||||
Net asset value, end of period (x) | $9.67 | $10.27 | $10.11 | $9.37 | $9.82 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (1.82 | ) | 5.43 | 12.23 | (0.36 | ) | 10.10 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 0.95 | 0.90 | 0.92 | 0.92 | 0.88 | |||||||||||||||
Expenses after expense reductions (f) | 0.80 | 0.75 | 0.77 | 0.77 | 0.77 | |||||||||||||||
Net investment income | 3.87 | 3.80 | 4.01 | 4.20 | 4.28 | |||||||||||||||
Portfolio turnover | 19 | 12 | 14 | 15 | 11 | |||||||||||||||
Net assets at end of period (000 omitted) | $85,405 | $114,430 | $114,748 | $104,478 | $107,625 |
See Notes to Financial Statements
68
Table of Contents
Financial Highlights – continued
MFS MISSISSIPPI MUNICIPAL BOND FUND – continued
Years ended 3/31 | ||||||||||||||||||||
Class B | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Net asset value, beginning of period | $10.28 | $10.12 | $9.38 | $9.83 | $9.32 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.31 | $0.32 | $0.33 | $0.34 | $0.35 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.57 | ) | 0.15 | 0.73 | (0.44 | ) | 0.50 | |||||||||||||
Total from investment operations | $(0.26 | ) | $0.47 | $1.06 | $(0.10 | ) | $0.85 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.30 | ) | $(0.30 | ) | $(0.32 | ) | $(0.33 | ) | $(0.34 | ) | ||||||||||
From net realized gain on investments | (0.04 | ) | (0.01 | ) | — | (0.02 | ) | — | ||||||||||||
Total distributions declared to shareholders | $(0.34 | ) | $(0.31 | ) | $(0.32 | ) | $(0.35 | ) | $(0.34 | ) | ||||||||||
Net asset value, end of period (x) | $9.68 | $10.28 | $10.12 | $9.38 | $9.83 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (2.50 | ) | 4.67 | 11.47 | (1.05 | ) | 9.22 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.70 | 1.65 | 1.67 | 1.67 | 1.61 | |||||||||||||||
Expenses after expense reductions (f) | 1.49 | 1.47 | 1.44 | 1.46 | 1.46 | |||||||||||||||
Net investment income | 3.17 | 3.06 | 3.35 | 3.49 | 3.59 | |||||||||||||||
Portfolio turnover | 19 | 12 | 14 | 15 | 11 | |||||||||||||||
Net assets at end of period (000 omitted) | $2,059 | $2,604 | $2,078 | $2,647 | $4,425 |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(x) | The net asset values per share 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. |
See Notes to Financial Statements
69
Table of Contents
Financial Highlights – continued
MFS NEW YORK MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund financial performance for the past 5 years. Certain information reflects financial results for a single fund share. The total returns in the table represent the rate by which an investor would have earned (or lost) on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
Years ended 3/31 | ||||||||||||||||||||
Class A | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Net asset value, beginning of period | $11.50 | $11.22 | $10.34 | $10.93 | $10.23 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.43 | $0.43 | $0.43 | $0.47 | $0.47 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.79 | ) | 0.26 | 0.87 | (0.60 | ) | 0.69 | |||||||||||||
Total from investment operations | $(0.36 | ) | $0.69 | $1.30 | $(0.13 | ) | $1.16 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.40 | ) | $(0.41 | ) | $(0.42 | ) | $(0.46 | ) | $(0.45 | ) | ||||||||||
From net realized gain on investments | — | — | — | — | (0.01 | ) | ||||||||||||||
Total distributions declared to shareholders | $(0.40 | ) | $(0.41 | ) | $(0.42 | ) | $(0.46 | ) | $(0.46 | ) | ||||||||||
Net asset value, end of period (x) | $10.74 | $11.50 | $11.22 | $10.34 | $10.93 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (3.04 | ) | 6.19 | 12.80 | (1.31 | ) | 11.53 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 0.88 | 0.86 | 0.88 | 0.87 | 0.88 | |||||||||||||||
Expenses after expense reductions (f) | 0.88 | 0.86 | 0.88 | 0.87 | 0.88 | |||||||||||||||
Net investment income | 3.94 | 3.73 | 3.99 | 4.30 | 4.35 | |||||||||||||||
Portfolio turnover | 25 | 18 | 28 | 27 | 26 | |||||||||||||||
Net assets at end of period (000 omitted) | $155,149 | $188,291 | $183,191 | $171,142 | $177,429 | |||||||||||||||
Years ended 3/31 | ||||||||||||||||||||
Class B | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Net asset value, beginning of period | $11.47 | $11.19 | $10.31 | $10.90 | $10.20 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.34 | $0.34 | $0.35 | $0.39 | $0.39 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.78 | ) | 0.26 | 0.87 | (0.60 | ) | 0.69 | |||||||||||||
Total from investment operations | $(0.44 | ) | $0.60 | $1.22 | $(0.21 | ) | $1.08 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.32 | ) | $(0.32 | ) | $(0.34 | ) | $(0.38 | ) | $(0.37 | ) | ||||||||||
From net realized gain on investments | — | — | — | — | (0.01 | ) | ||||||||||||||
Total distributions declared to shareholders | $(0.32 | ) | $(0.32 | ) | $(0.34 | ) | $(0.38 | ) | $(0.38 | ) | ||||||||||
Net asset value, end of period (x) | $10.71 | $11.47 | $11.19 | $10.31 | $10.90 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (3.77 | ) | 5.41 | 12.00 | (2.04 | ) | 10.73 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.64 | 1.61 | 1.63 | 1.62 | 1.63 | |||||||||||||||
Expenses after expense reductions (f) | 1.63 | 1.61 | 1.63 | 1.62 | 1.63 | |||||||||||||||
Net investment income | 3.20 | 2.98 | 3.26 | 3.56 | 3.61 | |||||||||||||||
Portfolio turnover | 25 | 18 | 28 | 27 | 26 | |||||||||||||||
Net assets at end of period (000 omitted) | $5,501 | $7,019 | $6,298 | $8,178 | $14,229 |
See Notes to Financial Statements
70
Table of Contents
Financial Highlights – continued
MFS NEW YORK MUNICIPAL BOND FUND – continued
Years ended 3/31 | ||||||||||||||||||||
Class C | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Net asset value, beginning of period | $11.48 | $11.21 | $10.33 | $10.92 | $10.22 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.35 | $0.34 | $0.35 | $0.38 | $0.39 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.79 | ) | 0.25 | 0.87 | (0.59 | ) | 0.69 | |||||||||||||
Total from investment operations | $(0.44 | ) | $0.59 | $1.22 | $(0.21 | ) | $1.08 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.32 | ) | $(0.32 | ) | $(0.34 | ) | $(0.38 | ) | $(0.37 | ) | ||||||||||
From net realized gain on investments | — | — | — | — | (0.01 | ) | ||||||||||||||
Total distributions declared to shareholders | $(0.32 | ) | $(0.32 | ) | $(0.34 | ) | $(0.38 | ) | $(0.38 | ) | ||||||||||
Net asset value, end of period (x) | $10.72 | $11.48 | $11.21 | $10.33 | $10.92 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (3.77 | ) | 5.31 | 11.97 | (2.04 | ) | 10.70 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.64 | 1.61 | 1.63 | 1.62 | 1.63 | |||||||||||||||
Expenses after expense reductions (f) | 1.63 | 1.61 | 1.63 | 1.62 | 1.63 | |||||||||||||||
Net investment income | 3.20 | 2.98 | 3.24 | 3.55 | 3.59 | |||||||||||||||
Portfolio turnover | 25 | 18 | 28 | 27 | 26 | |||||||||||||||
Net assets at end of period (000 omitted) | $24,225 | $36,508 | $32,962 | $28,780 | $31,421 |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(x) | The net asset values per share 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. |
See Notes to Financial Statements
71
Table of Contents
Financial Highlights – continued
MFS NORTH CAROLINA MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund financial performance for the past 5 years. Certain information reflects financial results for a single fund share. The total returns in the table represent the rate by which an investor would have earned (or lost) on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
Years ended 3/31 | ||||||||||||||||||||
Class A | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Net asset value, beginning of period | $12.38 | $12.17 | $11.18 | $11.71 | $11.15 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.43 | $0.42 | $0.45 | $0.49 | $0.51 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.76 | ) | 0.26 | 0.97 | (0.55 | ) | 0.55 | |||||||||||||
Total from investment operations | $(0.33 | ) | $0.68 | $1.42 | $(0.06 | ) | $1.06 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.41 | ) | $(0.40 | ) | $(0.43 | ) | $(0.47 | ) | $(0.48 | ) | ||||||||||
From net realized gain on investments | (0.06 | ) | (0.07 | ) | — | (0.00 | )(w) | (0.02 | ) | |||||||||||
Total distributions declared to shareholders | $(0.47 | ) | $(0.47 | ) | $(0.43 | ) | $(0.47 | ) | $(0.50 | ) | ||||||||||
Net asset value, end of period (x) | $11.58 | $12.38 | $12.17 | $11.18 | $11.71 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (2.66 | ) | 5.59 | 12.92 | (0.55 | ) | 9.55 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 0.87 | 0.84 | 0.85 | 0.85 | 0.87 | |||||||||||||||
Expenses after expense reductions (f) | 0.86 | 0.84 | 0.85 | 0.85 | 0.87 | |||||||||||||||
Net investment income | 3.64 | 3.35 | 3.82 | 4.22 | 4.42 | |||||||||||||||
Portfolio turnover | 17 | 18 | 24 | 20 | 12 | |||||||||||||||
Net assets at end of period (000 omitted) | $278,717 | $384,213 | $357,793 | $320,834 | $346,345 | |||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||
Ratios of expenses to average net assets after expense reductions and excluding interest expense and fees (f)(l) | N/A | 0.84 | 0.83 | 0.84 | 0.85 | |||||||||||||||
Years ended 3/31 | ||||||||||||||||||||
Class B | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Net asset value, beginning of period | $12.37 | $12.16 | $11.17 | $11.69 | $11.14 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.34 | $0.33 | $0.36 | $0.40 | $0.43 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.77 | ) | 0.26 | 0.98 | (0.53 | ) | 0.53 | |||||||||||||
Total from investment operations | $(0.43 | ) | $0.59 | $1.34 | $(0.13 | ) | $0.96 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.32 | ) | $(0.31 | ) | $(0.35 | ) | $(0.39 | ) | $(0.39 | ) | ||||||||||
From net realized gain on investments | (0.06 | ) | (0.07 | ) | — | (0.00 | )(w) | (0.02 | ) | |||||||||||
Total distributions declared to shareholders | $(0.38 | ) | $(0.38 | ) | $(0.35 | ) | $(0.39 | ) | $(0.41 | ) | ||||||||||
Net asset value, end of period (x) | $11.56 | $12.37 | $12.16 | $11.17 | $11.69 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (3.47 | ) | 4.81 | 12.09 | (1.20 | ) | 8.65 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.62 | 1.59 | 1.60 | 1.60 | 1.62 | |||||||||||||||
Expenses after expense reductions (f) | 1.62 | 1.59 | 1.60 | 1.60 | 1.62 | |||||||||||||||
Net investment income | 2.89 | 2.61 | 3.08 | 3.46 | 3.68 | |||||||||||||||
Portfolio turnover | 17 | 18 | 24 | 20 | 12 | |||||||||||||||
Net assets at end of period (000 omitted) | $5,082 | $7,618 | $7,793 | $8,296 | $11,331 | |||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||
Ratios of expenses to average net assets after expense reductions and excluding interest expense and fees (f)(l) | N/A | 1.59 | 1.58 | 1.59 | 1.60 |
See Notes to Financial Statements
72
Table of Contents
Financial Highlights – continued
MFS NORTH CAROLINA MUNICIPAL BOND FUND – continued
Years ended 3/31 | ||||||||||||||||||||
Class C | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Net asset value, beginning of period | $12.37 | $12.17 | $11.17 | $11.70 | $11.15 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.34 | $0.32 | $0.36 | $0.40 | $0.42 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.76 | ) | 0.26 | 0.98 | (0.54 | ) | 0.54 | |||||||||||||
Total from investment operations | $(0.42 | ) | $0.58 | $1.34 | $(0.14 | ) | $0.96 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.32 | ) | $(0.31 | ) | $(0.34 | ) | $(0.39 | ) | $(0.39 | ) | ||||||||||
From net realized gain on investments | (0.06 | ) | (0.07 | ) | — | (0.00 | )(w) | (0.02 | ) | |||||||||||
Total distributions declared to shareholders | $(0.38 | ) | $(0.38 | ) | $(0.34 | ) | $(0.39 | ) | $(0.41 | ) | ||||||||||
Net asset value, end of period (x) | $11.57 | $12.37 | $12.17 | $11.17 | $11.70 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (3.39 | ) | 4.72 | 12.18 | (1.29 | ) | 8.63 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.62 | 1.59 | 1.60 | 1.60 | 1.62 | |||||||||||||||
Expenses after expense reductions (f) | 1.62 | 1.59 | 1.60 | 1.60 | 1.62 | |||||||||||||||
Net investment income | 2.89 | 2.60 | 3.06 | 3.46 | 3.64 | |||||||||||||||
Portfolio turnover | 17 | 18 | 24 | 20 | 12 | |||||||||||||||
Net assets at end of period (000 omitted) | $56,314 | $87,114 | $75,895 | $64,530 | $68,989 | |||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||
Ratios of expenses to average net assets after expense reductions and excluding interest expense and fees (f)(l) | N/A | 1.59 | 1.58 | 1.59 | 1.60 |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(l) | Interest expense and fees relate to payments made to the holders of the floating rate certificates from trust assets. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(w) | Per share amount was less than $0.01. |
(x) | The net asset values per share 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. |
See Notes to Financial Statements
73
Table of Contents
Financial Highlights – continued
MFS PENNSYLVANIA MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund financial performance for the past 5 years. Certain information reflects financial results for a single fund share. The total returns in the table represent the rate by which an investor would have earned (or lost) on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
Years ended 3/31 | ||||||||||||||||||||
Class A | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Net asset value, beginning of period | $10.63 | $10.36 | $9.53 | $10.04 | $9.40 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.39 | $0.40 | $0.42 | $0.43 | $0.43 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.66 | ) | 0.25 | 0.82 | (0.52 | ) | 0.64 | |||||||||||||
Total from investment operations | $(0.27 | ) | $0.65 | $1.24 | $(0.09 | ) | $1.07 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.37 | ) | $(0.38 | ) | $(0.41 | ) | $(0.42 | ) | $(0.43 | ) | ||||||||||
Net asset value, end of period (x) | $9.99 | $10.63 | $10.36 | $9.53 | $10.04 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (2.52 | ) | 6.35 | 13.27 | (0.97 | ) | 11.49 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 0.93 | 0.89 | 0.93 | 0.93 | 0.91 | |||||||||||||||
Expenses after expense reductions (f) | 0.78 | 0.74 | 0.78 | 0.78 | 0.79 | |||||||||||||||
Net investment income | 3.90 | 3.77 | 4.20 | 4.34 | 4.40 | |||||||||||||||
Portfolio turnover | 21 | 15 | 21 | 21 | 12 | |||||||||||||||
Net assets at end of period (000 omitted) | $110,449 | $152,804 | $133,328 | $118,709 | $113,411 | |||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||
Ratios of expenses to average net assets after expense reductions and excluding interest expense and fees (f)(l) | N/A | 0.74 | 0.78 | 0.78 | 0.79 |
See Notes to Financial Statements
74
Table of Contents
Financial Highlights – continued
MFS PENNSYLVANIA MUNICIPAL BOND FUND – continued
Years ended 3/31 | ||||||||||||||||||||
Class B | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Net asset value, beginning of period | $10.65 | $10.39 | $9.55 | $10.06 | $9.43 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.31 | $0.32 | $0.35 | $0.36 | $0.36 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.65 | ) | 0.24 | 0.83 | (0.53 | ) | 0.62 | |||||||||||||
Total from investment operations | $(0.34 | ) | $0.56 | $1.18 | $(0.17 | ) | $0.98 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.29 | ) | $(0.30 | ) | $(0.34 | ) | $(0.34 | ) | $(0.35 | ) | ||||||||||
Net asset value, end of period (x) | $10.02 | $10.65 | $10.39 | $9.55 | $10.06 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (3.16 | ) | 5.42 | 12.49 | (1.74 | ) | 10.51 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.68 | 1.64 | 1.68 | 1.68 | 1.65 | |||||||||||||||
Expenses after expense reductions (f) | 1.55 | 1.51 | 1.55 | 1.56 | 1.54 | |||||||||||||||
Net investment income | 3.12 | 2.99 | 3.44 | 3.55 | 3.64 | |||||||||||||||
Portfolio turnover | 21 | 15 | 21 | 21 | 12 | |||||||||||||||
Net assets at end of period (000 omitted) | $6,936 | $10,793 | $10,524 | $12,750 | $20,864 | |||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||
Ratios of expenses to average net assets after expense reductions and excluding interest | N/A | 1.51 | 1.54 | 1.56 | 1.54 |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(l) | Interest expense and fees relate to payments made to the holders of the floating rate certificates from trust assets. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(x) | The net asset values per share 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. |
See Notes to Financial Statements
75
Table of Contents
Financial Highlights – continued
MFS SOUTH CAROLINA MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund financial performance for the past 5 years. Certain information reflects financial results for a single fund share. The total returns in the table represent the rate by which an investor would have earned (or lost) on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
Years ended 3/31 | ||||||||||||||||||||
Class A | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Net asset value, beginning of period | $12.61 | $12.38 | $11.48 | $12.04 | $11.33 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.43 | $0.43 | $0.47 | $0.50 | $0.53 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.85 | ) | 0.22 | 0.89 | (0.56 | ) | 0.68 | |||||||||||||
Total from investment operations | $(0.42 | ) | $0.65 | $1.36 | $(0.06 | ) | $1.21 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.41 | ) | $(0.42 | ) | $(0.46 | ) | $(0.50 | ) | $(0.49 | ) | ||||||||||
From net realized gain on investments | — | — | — | — | (0.01 | ) | ||||||||||||||
Total distributions declared to shareholders | $(0.41 | ) | $(0.42 | ) | $(0.46 | ) | $(0.50 | ) | $(0.50 | ) | ||||||||||
Net asset value, end of period (x) | $11.78 | $12.61 | $12.38 | $11.48 | $12.04 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (3.31 | ) | 5.24 | 12.02 | (0.59 | ) | 10.77 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 0.89 | 0.86 | 0.88 | 0.88 | 0.90 | |||||||||||||||
Expenses after expense reductions (f) | 0.89 | 0.86 | 0.88 | 0.88 | 0.90 | |||||||||||||||
Net investment income | 3.59 | 3.42 | 3.94 | 4.20 | 4.47 | |||||||||||||||
Portfolio turnover | 24 | 15 | 19 | 26 | 14 | |||||||||||||||
Net assets at end of period (000 omitted) | $166,428 | $220,370 | $194,840 | $166,413 | $165,017 |
See Notes to Financial Statements
76
Table of Contents
Financial Highlights – continued
MFS SOUTH CAROLINA MUNICIPAL BOND FUND – continued
Years ended 3/31 | ||||||||||||||||||||
Class B | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Net asset value, beginning of period | $12.61 | $12.37 | $11.47 | $12.04 | $11.33 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.34 | $0.34 | $0.38 | $0.41 | $0.44 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.86 | ) | 0.22 | 0.89 | (0.57 | ) | 0.68 | |||||||||||||
Total from investment operations | $(0.52 | ) | $0.56 | $1.27 | $(0.16 | ) | $1.12 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.32 | ) | $(0.32 | ) | $(0.37 | ) | $(0.41 | ) | $(0.40 | ) | ||||||||||
From net realized gain on investments | — | — | — | — | (0.01 | ) | ||||||||||||||
Total distributions declared to shareholders | $(0.32 | ) | $(0.32 | ) | $(0.37 | ) | $(0.41 | ) | $(0.41 | ) | ||||||||||
Net asset value, end of period (x) | $11.77 | $12.61 | $12.37 | $11.47 | $12.04 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (4.11 | ) | 4.55 | 11.20 | (1.41 | ) | 9.95 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.64 | 1.61 | 1.63 | 1.63 | 1.65 | |||||||||||||||
Expenses after expense reductions (f) | 1.64 | 1.61 | 1.63 | 1.63 | 1.65 | |||||||||||||||
Net investment income | 2.84 | 2.67 | 3.20 | 3.45 | 3.73 | |||||||||||||||
Portfolio turnover | 24 | 15 | 19 | 26 | 14 | |||||||||||||||
Net assets at end of period (000 omitted) | $5,125 | $7,421 | $6,698 | $6,928 | $9,438 |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(x) | The net asset values per share 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. |
See Notes to Financial Statements
77
Table of Contents
Financial Highlights – continued
MFS TENNESSEE MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund financial performance for the past 5 years. Certain information reflects financial results for a single fund share. The total returns in the table represent the rate by which an investor would have earned (or lost) on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
Years ended 3/31 | ||||||||||||||||||||
Class A | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Net asset value, beginning of period | $10.96 | $10.76 | $9.97 | $10.40 | $9.84 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.35 | $0.39 | $0.43 | $0.43 | $0.45 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.70 | ) | 0.18 | 0.78 | (0.44 | ) | 0.56 | |||||||||||||
Total from investment operations | $(0.35 | ) | $0.57 | $1.21 | $(0.01 | ) | $1.01 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.34 | ) | $(0.37 | ) | $(0.42 | ) | $(0.42 | ) | $(0.42 | ) | ||||||||||
From net realized gain on investments | — | — | — | — | (0.03 | ) | ||||||||||||||
Total distributions declared to shareholders | $(0.34 | ) | $(0.37 | ) | $(0.42 | ) | $(0.42 | ) | $(0.45 | ) | ||||||||||
Net asset value, end of period (x) | $10.27 | $10.96 | $10.76 | $9.97 | $10.40 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (3.15 | ) | 5.33 | 12.31 | (0.14 | ) | 10.46 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 0.94 | 0.89 | 0.91 | 0.91 | 0.91 | |||||||||||||||
Expenses after expense reductions (f) | 0.94 | 0.89 | 0.91 | 0.91 | 0.91 | |||||||||||||||
Net investment income | 3.42 | 3.51 | 4.08 | 4.13 | 4.36 | |||||||||||||||
Portfolio turnover | 26 | 20 | 14 | 18 | 20 | |||||||||||||||
Net assets at end of period (000 omitted) | $104,102 | $133,911 | $117,095 | $107,334 | $125,641 |
See Notes to Financial Statements
78
Table of Contents
Financial Highlights – continued
MFS TENNESSEE MUNICIPAL BOND FUND – continued
Years ended 3/31 | ||||||||||||||||||||
Class B | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Net asset value, beginning of period | $10.95 | $10.75 | $9.97 | $10.39 | $9.83 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.28 | $0.30 | $0.35 | $0.35 | $0.37 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.71 | ) | 0.19 | 0.77 | (0.43 | ) | 0.57 | |||||||||||||
Total from investment operations | $(0.43 | ) | $0.49 | $1.12 | $(0.08 | ) | $0.94 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.26 | ) | $(0.29 | ) | $(0.34 | ) | $(0.34 | ) | $(0.35 | ) | ||||||||||
From net realized gain on investments | — | — | — | — | (0.03 | ) | ||||||||||||||
Total distributions declared to shareholders | $(0.26 | ) | $(0.29 | ) | $(0.34 | ) | $(0.34 | ) | $(0.38 | ) | ||||||||||
Net asset value, end of period (x) | $10.26 | $10.95 | $10.75 | $9.97 | $10.39 | �� | ||||||||||||||
Total return (%) (r)(s)(t)(x) | (3.88 | ) | 4.55 | 11.37 | (0.78 | ) | 9.65 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.69 | 1.64 | 1.66 | 1.66 | 1.66 | |||||||||||||||
Expenses after expense reductions (f) | 1.69 | 1.64 | 1.66 | 1.65 | 1.66 | |||||||||||||||
Net investment income | 2.68 | 2.76 | 3.34 | 3.38 | 3.63 | |||||||||||||||
Portfolio turnover | 26 | 20 | 14 | 18 | 20 | |||||||||||||||
Net assets at end of period (000 omitted) | $1,893 | $2,727 | $2,535 | $3,116 | $4,907 |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(x) | The net asset values per share 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. |
See Notes to Financial Statements
79
Table of Contents
Financial Highlights – continued
MFS VIRGINIA MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund financial performance for the past 5 years. Certain information reflects financial results for a single fund share. The total returns in the table represent the rate by which an investor would have earned (or lost) on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
Years ended 3/31 | ||||||||||||||||||||
Class A | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Net asset value, beginning of period | $11.69 | $11.52 | $10.67 | $11.24 | $10.54 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.40 | $0.42 | $0.45 | $0.47 | $0.49 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.64 | ) | 0.15 | 0.83 | (0.57 | ) | 0.69 | |||||||||||||
Total from investment operations | $(0.24 | ) | $0.57 | $1.28 | $(0.10 | ) | $1.18 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.40 | ) | $(0.40 | ) | $(0.43 | ) | $(0.46 | ) | $(0.48 | ) | ||||||||||
From net realized gain on investments | — | — | — | (0.01 | ) | (0.00 | )(w) | |||||||||||||
Total distributions declared to shareholders | $(0.40 | ) | $(0.40 | ) | $(0.43 | ) | $(0.47 | ) | $(0.48 | ) | ||||||||||
Net asset value, end of period (x) | $11.05 | $11.69 | $11.52 | $10.67 | $11.24 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (2.02 | ) | 4.99 | 12.21 | (1.03 | ) | 11.34 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 0.89 | 0.86 | 0.86 | 0.86 | 0.87 | |||||||||||||||
Expenses after expense reductions (f) | 0.88 | 0.86 | 0.86 | 0.86 | 0.87 | |||||||||||||||
Net investment income | 3.65 | 3.57 | 3.99 | 4.23 | 4.40 | |||||||||||||||
Portfolio turnover | 24 | 11 | 24 | 21 | 15 | |||||||||||||||
Net assets at end of period (000 omitted) | $257,695 | $335,395 | $317,117 | $292,027 | $302,736 | |||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||
Ratios of expenses to average net assets after expense reductions and excluding interest expense and fees (f)(l) | 0.87 | 0.85 | 0.85 | 0.85 | 0.86 | |||||||||||||||
Years ended 3/31 | ||||||||||||||||||||
Class B | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Net asset value, beginning of period | $11.68 | $11.51 | $10.66 | $11.24 | $10.53 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.32 | $0.33 | $0.36 | $0.39 | $0.40 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.64 | ) | 0.15 | 0.84 | (0.58 | ) | 0.70 | |||||||||||||
Total from investment operations | $(0.32 | ) | $0.48 | $1.20 | $(0.19 | ) | $1.10 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.31 | ) | $(0.31 | ) | $(0.35 | ) | $(0.38 | ) | $(0.39 | ) | ||||||||||
From net realized gain on investments | — | — | — | (0.01 | ) | (0.00 | )(w) | |||||||||||||
Total distributions declared to shareholders | $(0.31 | ) | $(0.31 | ) | $(0.35 | ) | $(0.39 | ) | $(0.39 | ) | ||||||||||
Net asset value, end of period (x) | $11.05 | $11.68 | $11.51 | $10.66 | $11.24 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (2.67 | ) | 4.21 | 11.38 | (1.85 | ) | 10.62 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.64 | 1.61 | 1.61 | 1.61 | 1.62 | |||||||||||||||
Expenses after expense reductions (f) | 1.64 | 1.61 | 1.61 | 1.61 | 1.62 | |||||||||||||||
Net investment income | 2.90 | 2.83 | 3.25 | 3.47 | 3.66 | |||||||||||||||
Portfolio turnover | 24 | 11 | 24 | 21 | 15 | |||||||||||||||
Net assets at end of period (000 omitted) | $2,212 | $3,425 | $3,781 | $4,159 | $6,558 | |||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||
Ratios of expenses to average net assets after expense reductions and excluding interest expense and fees (f)(l) | 1.63 | 1.60 | 1.60 | 1.60 | 1.61 |
See Notes to Financial Statements
80
Table of Contents
Financial Highlights – continued
MFS VIRGINIA MUNICIPAL BOND FUND – continued
Years ended 3/31 | ||||||||||||||||||||
Class C | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Net asset value, beginning of period | $11.68 | $11.51 | $10.67 | $11.24 | $10.54 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.32 | $0.33 | $0.36 | $0.39 | $0.40 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.64 | ) | 0.15 | 0.83 | (0.58 | ) | 0.69 | |||||||||||||
Total from investment operations | $(0.32 | ) | $0.48 | $1.19 | $(0.19 | ) | $1.09 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.31 | ) | $(0.31 | ) | $(0.35 | ) | $(0.37 | ) | $(0.39 | ) | ||||||||||
From net realized gain on investments | — | — | — | (0.01 | ) | (0.00 | )(w) | |||||||||||||
Total distributions declared to shareholders | $(0.31 | ) | $(0.31 | ) | $(0.35 | ) | $(0.38 | ) | $(0.39 | ) | ||||||||||
Net asset value, end of period (x) | $11.05 | $11.68 | $11.51 | $10.67 | $11.24 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (2.67 | ) | 4.21 | 11.27 | (1.77 | ) | 10.50 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.64 | 1.61 | 1.61 | 1.61 | 1.62 | |||||||||||||||
Expenses after expense reductions (f) | 1.64 | 1.61 | 1.61 | 1.61 | 1.62 | |||||||||||||||
Net investment income | 2.90 | 2.81 | 3.24 | 3.47 | 3.63 | |||||||||||||||
Portfolio turnover | 24 | 11 | 24 | 21 | 15 | |||||||||||||||
Net assets at end of period (000 omitted) | $25,163 | $35,878 | $32,519 | $30,726 | $29,660 | |||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||
Ratios of expenses to average net assets after expense reductions and excluding interest expense and fees (f)(l) | 1.63 | 1.60 | 1.60 | 1.60 | 1.61 |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(l) | Interest expense and fees relate to payments made to the holders of the floating rate certificates from trust assets. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(w) | Per share amount was less than $0.01. |
(x) | The net asset values per share 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. |
See Notes to Financial Statements
81
Table of Contents
Financial Highlights – continued
MFS WEST VIRGINIA MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund financial performance for the past 5 years. Certain information reflects financial results for a single fund share. The total returns in the table represent the rate by which an investor would have earned (or lost) on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
Years ended 3/31 | ||||||||||||||||||||
Class A | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Net asset value, beginning of period | $11.60 | $11.49 | $10.61 | $10.98 | $10.36 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.39 | $0.40 | $0.43 | $0.44 | $0.45 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.69 | ) | 0.09 | 0.86 | (0.39 | ) | 0.60 | |||||||||||||
Total from investment operations | $(0.30 | ) | $0.49 | $1.29 | $0.05 | $1.05 | ||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.37 | ) | $(0.38 | ) | $(0.41 | ) | $(0.42 | ) | $(0.42 | ) | ||||||||||
From net realized gain on investments | — | — | — | — | (0.01 | ) | ||||||||||||||
Total distributions declared to shareholders | $(0.37 | ) | $(0.38 | ) | $(0.41 | ) | $(0.42 | ) | $(0.43 | ) | ||||||||||
Net asset value, end of period (x) | $10.93 | $11.60 | $11.49 | $10.61 | $10.98 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (2.54 | ) | 4.32 | 12.32 | 0.41 | 10.22 | ||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 0.93 | 0.88 | 0.88 | 0.89 | 0.90 | |||||||||||||||
Expenses after expense reductions (f) | 0.90 | 0.88 | 0.88 | 0.89 | 0.90 | |||||||||||||||
Net investment income | 3.58 | 3.44 | 3.81 | 3.98 | 4.12 | |||||||||||||||
Portfolio turnover | 17 | 14 | 14 | 17 | 12 | |||||||||||||||
Net assets at end of period (000 omitted) | $119,721 | $153,032 | $143,789 | $128,450 | $133,244 |
See Notes to Financial Statements
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Financial Highlights – continued
MFS WEST VIRGINIA MUNICIPAL BOND FUND – continued
Years ended 3/31 | ||||||||||||||||||||
Class B | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||
Net asset value, beginning of period | $11.59 | $11.49 | $10.61 | $10.97 | $10.36 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.31 | $0.31 | $0.34 | $0.36 | $0.37 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.68 | ) | 0.09 | 0.86 | (0.38 | ) | 0.59 | |||||||||||||
Total from investment operations | $(0.37 | ) | $0.40 | $1.20 | $(0.02 | ) | $0.96 | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.29 | ) | $(0.30 | ) | $(0.32 | ) | $(0.34 | ) | $(0.34 | ) | ||||||||||
From net realized gain on investments | — | — | — | — | (0.01 | ) | ||||||||||||||
Total distributions declared to shareholders | $(0.29 | ) | $(0.30 | ) | $(0.32 | ) | $(0.34 | ) | $(0.35 | ) | ||||||||||
Net asset value, end of period (x) | $10.93 | $11.59 | $11.49 | $10.61 | $10.97 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | (3.18 | ) | 3.46 | 11.48 | (0.24 | ) | 9.31 | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.68 | 1.63 | 1.63 | 1.64 | 1.66 | |||||||||||||||
Expenses after expense reductions (f) | 1.65 | 1.63 | 1.63 | 1.64 | 1.65 | |||||||||||||||
Net investment income | 2.83 | 2.69 | 3.08 | 3.23 | 3.39 | |||||||||||||||
Portfolio turnover | 17 | 14 | 14 | 17 | 12 | |||||||||||||||
Net assets at end of period (000 omitted) | $1,291 | $1,890 | $2,220 | $2,925 | $4,639 |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(x) | The net asset values per share 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. |
See Notes to Financial Statements
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(1) | Business and Organization |
MFS Mississippi Municipal Bond Fund (Mississippi Fund), MFS New York Municipal Bond Fund (New York Fund), MFS North Carolina Municipal Bond Fund (North Carolina Fund), MFS Pennsylvania Municipal Bond Fund (Pennsylvania Fund), MFS South Carolina Municipal Bond Fund (South Carolina Fund), MFS Tennessee Municipal Bond Fund (Tennessee Fund), MFS Virginia Municipal Bond Fund (Virginia Fund), and MFS West Virginia Municipal Bond Fund (West Virginia Fund) are each a diversified series of MFS Municipal Series Trust, (with the exception of Mississippi Fund and West Virginia Fund which are non-diversified), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company.
The funds are each investment companies and accordingly follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 Financial Services – Investment Companies.
(2) | Significant Accounting Policies |
General – The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated subsequent events occurring after the date of each fund’s Statement of Assets and Liabilities through the date that the financial statements were issued. Each fund invests primarily in municipal instruments. The value of municipal instruments can be affected by changes in their actual or perceived credit quality. The credit quality of municipal instruments can be affected by, among other things, the financial condition of the issuer or guarantor, the issuer’s future borrowing plans and sources of revenue, the economic feasibility of the revenue bond project or general borrowing purpose, political or economic developments in the region or state where the instrument is issued and the liquidity of the security. Municipal instruments generally trade in the over-the-counter market. Municipal instruments backed by current and anticipated revenues from a specific project or specific assets can be negatively affected by the discontinuance of the taxation supporting the projects or assets or the inability to collect revenues for the project or from the assets. If the Internal Revenue Service determines an issuer of a municipal instrument has not complied with the applicable tax requirements, interest from the security could become taxable, the security could decline in value, and distributions made by the funds could be taxable to shareholders.
In this reporting period, each fund adopted the disclosure provisions of FASB Accounting Standards Update 2011-11 (“ASU 2011-11”), Balance Sheet (Topic 210) – Disclosures about Offsetting Assets and Liabilities along with the related scope clarification provisions of FASB Accounting Standards Update 2013-01 (“ASU 2013-01”) entitled Balance Sheet (Topic 210) – Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. ASU 2011-11 is intended to enhance disclosures on the offsetting of financial assets and liabilities by requiring entities to disclose both gross and net information about financial instruments and transactions that are either offset in the statement of financial position or subject to an enforceable Master Netting Agreement or similar arrangement. ASU 2013-01 limits the scope of ASU 2011-11’s disclosure requirements on offsetting to financial assets and financial liabilities related to derivatives, repurchase and reverse repurchase agreements, and securities lending and securities borrowing transactions. The disclosures required by ASU 2011-11, to the extent applicable to each fund, have been included in each fund’s Significant Accounting Policies note under the captions for each of the fund’s in-scope financial instruments and transactions.
Investment Valuations – Debt instruments and floating rate loans (other than short-term instruments), including restricted debt instruments, are generally valued at an evaluated or composite bid as provided by a third-party pricing service. Short-term instruments with a maturity at issuance of 60 days or less generally are valued at amortized cost, which approximates market value. Open-end investment companies are generally valued at net asset value per share. Securities and other assets generally valued on the basis of information from a third-party pricing service may also be valued at a broker/dealer bid quotation. Values obtained from third-party pricing services can utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics, and other market data.
The Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of each fund’s investments (including any fair valuation) to the adviser pursuant to valuation policies and procedures approved by the Board. If the adviser determines that reliable market quotations are not readily available, investments are valued at fair value as determined in good faith by the adviser in accordance with such procedures under the oversight of the Board of Trustees. Under each fund’s valuation policies and procedures, market quotations are not considered to be readily available for most types of debt instruments and floating rate loans and many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services. In addition, investments may be valued at fair value if the adviser determines that an investment’s value has been materially affected by events occurring after the close of the exchange or market on which the investment is principally traded (such as foreign exchange or market) and prior to the determination of each fund’s net asset value, or after the halting of trading of a specific security where trading does not resume prior to the close of the exchange or market on which the security is principally traded. The adviser generally relies on third-party pricing services or other information (such as the correlation with price
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Notes to Financial Statements – continued
movements of similar securities in the same or other markets; the type, cost and investment characteristics of the security; the business and financial condition of the issuer; and trading and other market data) to assist in determining whether to fair value and at what value to fair value an investment. The value of an investment for purposes of calculating each fund’s net asset value can differ depending on the source and method used to determine value. When fair valuation is used, the value of an investment used to determine each fund’s net asset value may differ from quoted or published prices for the same investment. There can be no assurance that each fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which each fund determines its net asset value per share.
Various inputs are used in determining the value of each fund’s assets or liabilities. These inputs are categorized into three broad levels. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Each fund’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes unobservable inputs, which may include the adviser’s own assumptions in determining the fair value of investments. The following is a summary of the levels used as of March 31, 2014 in valuing each fund’s assets or liabilities:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Mississippi Fund | ||||||||||||||||
Investments at Value | ||||||||||||||||
Municipal Bonds | $— | $85,482,312 | $— | $85,482,312 | ||||||||||||
Mutual Funds | 1,231,523 | — | — | 1,231,523 | ||||||||||||
Total Investments | $1,231,523 | $85,482,312 | $— | $86,713,835 | ||||||||||||
New York Fund | ||||||||||||||||
Investments at Value | ||||||||||||||||
Municipal Bonds | $— | $179,377,050 | $— | $179,377,050 | ||||||||||||
Mutual Funds | 2,613,642 | — | — | 2,613,642 | ||||||||||||
Total Investments | $2,613,642 | $179,377,050 | $— | $181,990,692 | ||||||||||||
North Carolina Fund | ||||||||||||||||
Investments at Value | ||||||||||||||||
Municipal Bonds | $— | $334,119,664 | $— | $334,119,664 | ||||||||||||
Mutual Funds | 435,865 | — | — | 435,865 | ||||||||||||
Total Investments | $435,865 | $334,119,664 | $— | $334,555,529 | ||||||||||||
Pennsylvania Fund | ||||||||||||||||
Investments at Value | ||||||||||||||||
Municipal Bonds | $— | $112,439,801 | $— | $112,439,801 | ||||||||||||
Mutual Funds | 3,151,391 | — | — | 3,151,391 | ||||||||||||
Total Investments | $3,151,391 | $112,439,801 | $— | $115,591,192 | ||||||||||||
South Carolina Fund | ||||||||||||||||
Investments at Value | ||||||||||||||||
Municipal Bonds | $— | $165,298,255 | $— | $165,298,255 | ||||||||||||
Mutual Funds | 2,792,200 | — | — | 2,792,200 | ||||||||||||
Total Investments | $2,792,200 | $165,298,255 | $— | $168,090,455 | ||||||||||||
Tennessee Fund | ||||||||||||||||
Investments at Value | ||||||||||||||||
Municipal Bonds | $— | $102,294,799 | $— | $102,294,799 | ||||||||||||
Mutual Funds | 1,662,126 | — | — | 1,662,126 | ||||||||||||
Total Investments | $1,662,126 | $102,294,799 | $— | $103,956,925 | ||||||||||||
Virginia Fund | ||||||||||||||||
Investments at Value | ||||||||||||||||
Municipal Bonds | $— | $283,781,477 | $— | $283,781,477 | ||||||||||||
Mutual Funds | 3,097,091 | — | — | 3,097,091 | ||||||||||||
Total Investments | $3,097,091 | $283,781,477 | $— | $286,878,568 |
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Level 1 | Level 2 | Level 3 | Total | |||||||||||||
West Virginia Fund | ||||||||||||||||
Investments at Value | ||||||||||||||||
Municipal Bonds | $— | $114,541,433 | $— | $114,541,433 | ||||||||||||
Mutual Funds | 99 | — | — | 99 | ||||||||||||
Total Investments | $99 | $114,541,433 | $— | $114,541,532 |
For further information regarding security characteristics, see the Portfolio of Investments.
Inverse Floaters – The Pennsylvania Fund and the Virginia Fund invest in municipal inverse floating rate securities which are structured by the issuer (known as primary market inverse floating rate securities) or by an investment banker utilizing municipal bonds which have already been issued (known as secondary market inverse floating rate securities) to have variable rates of interest which typically move in the opposite direction of short term interest rates. A secondary market inverse floating rate security is created when an investment banker transfers a fixed rate municipal bond to a special purpose trust, and causes the trust to (a) issue floating rate certificates to third parties, in an amount equal to a fraction of the par amount of the deposited bonds (these certificates usually pay tax-exempt interest at short-term interest rates that typically reset weekly; and the certificate holders typically, on seven days notice, have the option to tender their certificates to the investment banker or another party for redemption at par plus accrued interest), and (b) issue inverse floating rate certificates (sometimes referred to as “inverse floaters”). If the holders of the inverse floaters transfer the municipal bonds to an investment banker for the purpose of depositing the municipal bonds into the special purpose trust, the inverse floating rate certificates that are issued by the trust are referred to as “self-deposited inverse floaters.” If the bonds held by the trust are purchased by the investment banker for deposit into the trust from someone other than the purchasers of the inverse floaters, the inverse floating rate certificates that are issued by the trust are referred to as “externally deposited inverse floaters.” Such self-deposited inverse floaters held by the Virginia Fund are accounted for as secured borrowings, with the municipal bonds reflected in the investments of the Virginia Fund and amounts owed to the holders of the floating rate certificates under the provisions of the trust, which amounts are paid solely from the assets of the trust, reflected as liabilities of the Virginia Fund in the Statements of Assets and Liabilities under the caption, “Payable to the holders of the floating rate certificates from trust assets”. The carrying value of the Virginia Fund’s payable to the holders of the floating rate certificates from trust assets as reported in the Virginia Fund’s Statements of Assets and Liabilities approximates its fair value. The value of the payable to the holders of the floating rate certificates from trust assets as of the reporting date is considered level 2 under the fair value hierarchy disclosure. At March 31, 2014, the Virginia Fund’s payable to the holders of the floating rate certificates from trust assets was $4,998,734 and the interest rate on the floating rate certificates issued by the trust was 0.07%. For the year ended March 31, 2014, the Virginia Fund’s average payable to the holders of the floating rate certificates from trust assets was $4,996,906 at a weighted average interest rate of 0.09%. Interest expense and fees relate to interest payments made to the holders of certain floating rate certificates and associated fees, both of which are made from trust assets. Interest expense and fees are recorded as incurred. For the year ended March 31, 2014, the Virginia Fund’s interest expense and fees in connection with self-deposited inverse floaters were $35,773. As of March 31, 2014, the Pennsylvania Fund held primary market inverse floating rate securities which are not accounted for as secured borrowings.
Indemnifications – Under each fund’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to each fund. Additionally, in the normal course of business, each fund enters into agreements with service providers that may contain indemnification clauses. Each fund’s maximum exposure under these agreements is unknown as this would involve future claims that may be made against each fund that have not yet occurred.
Investment Transactions and Income – Investment transactions are recorded on the trade date. Interest income is recorded on the accrual basis. All premium and discount is amortized or accreted for financial statement purposes in accordance with U.S. generally accepted accounting principles. Interest payments received in additional securities are recorded on the ex-interest date in an amount equal to the value of the security on such date. Debt obligations may be placed on non-accrual status or set to accrue at a rate of interest less than the contractual coupon when the collection of all or a portion of interest has become doubtful. Interest income for those debt obligations may be further reduced by the write-off of the related interest receivables when deemed uncollectible.
Each fund may receive proceeds from litigation settlements. Any proceeds received from litigation involving portfolio holdings are reflected in the Statements of Operations in realized gain/loss if the security has been disposed of by the fund or in unrealized gain/loss if the security is still held by the fund. Any other proceeds from litigation not related to portfolio holdings are reflected as other income in the Statements of Operations.
Legal fees and other related expenses incurred to preserve and protect the value of a security owned are added to the cost of the security; other legal fees are expensed. Capital infusions made directly to the security issuer, which are generally non-recurring, incurred to protect or enhance the value of high-yield debt securities, are reported as additions to the cost basis of the security. Costs that are incurred to negotiate the terms or conditions of capital infusions or that are expected to result in a plan of reorganization are reported as realized losses. Ongoing costs incurred to protect or enhance an investment, or costs incurred to pursue other claims or legal actions, are expensed.
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Fees Paid Indirectly – Each fund’s custody fee may be reduced according to an arrangement that measures the value of cash deposited with the custodian by each fund. This amount, for the year ended March 31, 2014, is shown as a reduction of total expenses in the Statements of Operations.
Tax Matters and Distributions – Each fund intends to qualify as a regulated investment company, as defined under Subchapter M of the Internal Revenue Code, and to distribute all of its taxable and tax-exempt income, including realized capital gains. As a result, no provision for federal income tax is required. Each fund’s federal tax returns, when filed, will remain subject to examination by the Internal Revenue Service for a three year period. Management has analyzed each fund’s tax positions taken on federal and state tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
Distributions to shareholders are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. Certain capital accounts in the financial statements are periodically adjusted for permanent differences in order to reflect their tax character. These adjustments have no impact on net assets or net asset value per share. Temporary differences which arise from recognizing certain items of income, expense, gain or loss in different periods for financial statement and tax purposes will reverse at some time in the future. Distributions in excess of net investment income or net realized gains are temporary overdistributions for financial statement purposes resulting from differences in the recognition or classification of income or distributions for financial statement and tax purposes.
Book/tax differences primarily relate to amortization and accretion of debt securities and secured borrowings, as applicable to each fund.
The tax character of distributions declared to shareholders for the last two fiscal years is as follows:
Year ended 3/31/14 | Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | ||||||||||||||||||||||||
Ordinary income (including any short-term capital gains) | $206,918 | $— | $40,014 | $— | $101,054 | $— | $— | $— | ||||||||||||||||||||||||
Tax-exempt income | 3,710,354 | 7,261,983 | 12,997,029 | 4,898,095 | 6,473,427 | 3,839,305 | 11,082,069 | 4,610,142 | ||||||||||||||||||||||||
Long-term capital gain | 133,285 | — | 1,752,714 | — | — | — | — | — | ||||||||||||||||||||||||
Total distributions | $4,050,557 | $7,261,983 | $14,789,757 | $4,898,095 | $6,574,481 | $3,839,305 | $11,082,069 | $4,610,142 | ||||||||||||||||||||||||
Year ended 3/31/13 | Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | ||||||||||||||||||||||||
Ordinary income (including any short-term capital gains) | $34,046 | $— | $1,068,031 | $— | $13,912 | $— | $— | $— | ||||||||||||||||||||||||
Tax-exempt income | 4,322,240 | 7,854,148 | 14,357,119 | 5,483,765 | 7,100,265 | 4,319,638 | 12,316,868 | 4,987,231 | ||||||||||||||||||||||||
Long-term capital gain | 74,037 | — | 1,515,140 | — | — | — | — | — | ||||||||||||||||||||||||
Total distributions | $4,430,323 | $7,854,148 | $16,940,290 | $5,483,765 | $7,114,177 | $4,319,638 | $12,316,868 | $4,987,231 |
The federal tax cost and the tax basis components of distributable earnings were as follows:
As of 3/31/14 | Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | ||||||||||||
Cost of investments | $82,549,550 | $173,006,515 | $316,990,605 | $111,127,168 | ||||||||||||
Gross appreciation | $4,695,437 | $11,126,506 | $19,257,306 | $5,516,720 | ||||||||||||
Gross depreciation | (531,152 | ) | (2,142,329 | ) | (1,692,382 | ) | (1,052,696 | ) | ||||||||
Net unrealized appreciation (depreciation) | $4,164,285 | $8,984,177 | $17,564,924 | $4,464,024 | ||||||||||||
Undistributed tax-exempt income | 319,158 | 555,992 | 1,111,605 | 366,808 | ||||||||||||
Capital loss carryforwards | (2,352,896 | ) | (6,941,803 | ) | (12,245,489 | ) | (4,647,284 | ) | ||||||||
Post-October capital loss deferral | (101,763 | ) | (426,034 | ) | (53,343 | ) | (576,816 | ) | ||||||||
Other temporary differences | (270,796 | ) | (569,595 | ) | (1,007,033 | ) | (356,268 | ) |
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As of 3/31/14 | South Carolina | Tennessee Fund | Virginia Fund | West Virginia | ||||||||||||
Cost of investments | $162,716,085 | $100,571,275 | $272,352,250 | $111,286,491 | ||||||||||||
Gross appreciation | $7,411,729 | $4,871,610 | $13,820,628 | $5,104,598 | ||||||||||||
Gross depreciation | (2,037,359 | ) | (1,485,960 | ) | (4,293,044 | ) | (1,849,557 | ) | ||||||||
Net unrealized appreciation (depreciation) | $5,374,370 | $3,385,650 | $9,527,584 | $3,255,041 | ||||||||||||
Undistributed ordinary income | 46,957 | 11,636 | 127,881 | — | ||||||||||||
Undistributed tax-exempt income | 464,114 | 759,855 | 689,965 | 344,905 | ||||||||||||
Capital loss carryforwards | (7,378,045 | ) | (2,848,339 | ) | (7,717,195 | ) | (3,817,280 | ) | ||||||||
Post-October capital loss deferral | (503,012 | ) | (548,888 | ) | (904,271 | ) | (419,973 | ) | ||||||||
Other temporary differences | (491,801 | ) | (288,861 | ) | (890,963 | ) | (355,586 | ) |
Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized for fund fiscal years beginning after March 31, 2011 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses (“post-enactment losses”). Previously, net capital losses were carried forward for eight years and treated as short-term losses (“pre-enactment losses”). As a transition rule, the Act requires that all post-enactment net capital losses be used before pre-enactment net capital losses.
As of March 31, 2014, each fund had capital loss carryforwards available to offset future realized gains as follows:
Pre-enactment losses which expire as follows: | New York Fund | Pennsylvania Fund | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | ||||||||||||||||||||||||||
3/31/17 | $— | $(310,955 | ) | $— | $— | $— | $— | |||||||||||||||||||||||||
3/31/18 | — | (139,728 | ) | (620,248 | ) | — | — | (314,556 | ) | |||||||||||||||||||||||
3/31/19 | (1,676,455 | ) | (847,239 | ) | (825,001 | ) | (57,345 | ) | (203,621 | ) | — | |||||||||||||||||||||
Total | $(1,676,455 | ) | $(1,297,922 | ) | $(1,445,249 | ) | $(57,345 | ) | $(203,621 | ) | $(314,556 | ) | ||||||||||||||||||||
Post-enactment losses which are characterized as follows: | Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | ||||||||||||||||||||||||
Short-Term | $(627,503 | ) | $(3,473,144 | ) | $(8,216,019 | ) | $(2,455,188 | ) | $(3,451,562 | ) | $(2,022,390 | ) | $(3,377,014 | ) | $(1,053,477 | ) | ||||||||||||||||
Long-Term | (1,725,393 | ) | (1,792,204 | ) | (4,029,470 | ) | (894,174 | ) | (2,481,234 | ) | (768,604 | ) | (4,136,560 | ) | (2,449,247 | ) | ||||||||||||||||
Total | $(2,352,896 | ) | $(5,265,348 | ) | $(12,245,489 | ) | $(3,349,362 | ) | $(5,932,796 | ) | $(2,790,994 | ) | $(7,513,574 | ) | $(3,502,724 | ) |
Multiple Classes of Shares of Beneficial Interest – Each fund offers multiple classes of shares, which differ in their respective distribution and service fees. Each fund’s income and common expenses are allocated to shareholders based on the value of settled shares outstanding of each class. Each fund’s realized and unrealized gain (loss) are allocated to shareholders based on the daily net assets of each class. Dividends are declared separately for each class. Differences in per share dividend rates are generally due to differences in separate class expenses. Class B shares will convert to Class A shares approximately eight years after purchase. Each fund’s distributions declared to shareholders as reported in the Statements of Changes in Net Assets are presented by class as follows:
Distributions declared to shareholders:
From net investment income
Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | |||||||||||||
Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | |||||||||
Class A | $3,638,991 | $4,246,586 | $6,214,089 | $6,660,265 | $10,949,024 | $12,124,204 | $4,652,323 | $5,179,316 | ||||||||
Class B | 71,223 | 75,654 | 180,165 | 186,269 | 165,716 | 195,983 | 245,772 | 304,449 | ||||||||
Class C | — | — | 867,729 | 1,007,614 | 1,882,289 | 2,036,932 | — | — | ||||||||
Total | $3,710,214 | $4,322,240 | $7,261,983 | $7,854,148 | $12,997,029 | $14,357,119 | $4,898,095 | $5,483,765 | ||||||||
South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | |||||||||||||
Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | Year ended | |||||||||
Class A | $6,412,125 | $6,925,932 | $3,780,694 | $4,249,314 | $10,164,248 | $11,299,255 | $4,569,555 | $4,933,555 | ||||||||
Class B | 162,356 | 188,245 | 58,611 | 70,324 | 77,252 | 97,627 | 40,587 | 53,676 | ||||||||
Class C | — | — | — | — | 840,569 | 919,986 | — | — | ||||||||
Total | $6,574,481 | $7,114,177 | $3,839,305 | $4,319,638 | $11,082,069 | $12,316,868 | $4,610,142 | $4,987,231 |
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From net realized gain on investments
Mississippi Fund | North Carolina Fund | |||||||||||||||
Year ended | Year ended | Year ended | Year ended | |||||||||||||
Class A | $332,347 | $105,620 | $1,450,638 | $2,075,167 | ||||||||||||
Class B | 7,996 | 2,463 | 28,191 | 43,426 | ||||||||||||
Class C | — | — | 313,899 | 464,578 | ||||||||||||
Total | $340,343 | $108,083 | $1,792,728 | $2,583,171 |
(3) | Transactions with Affiliates |
Investment Adviser – Each fund has an investment advisory agreement with MFS to provide overall investment management and related administrative services and facilities to each fund. The management fee is computed daily and paid monthly at an annual rate of 0.45% of each fund’s average daily net assets.
MFS has agreed in writing to reduce its management fee by a specified amount if certain MFS mutual fund assets exceed thresholds agreed to by MFS and the funds’ Board of Trustees. For the year ended March 31, 2014, these management fee reductions amounted to the following, which are included in the reduction of total expenses in the Statements of Operations:
Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | |||||||
$1,443 | $2,998 | $5,689 | $1,980 | $2,833 | $1,724 | $4,697 | $2,048 |
The management fee incurred for the year ended March 31, 2014 was equivalent to an annual effective rate of 0.45% of each fund’s average daily net assets.
The investment adviser has agreed in writing to pay a portion of the following funds’ total annual operating expenses, exclusive of interest, taxes, extraordinary expenses, brokerage and transaction costs, and investment-related expenses (including interest expense and fees associated with investments in inverse floating rate instruments), such that total fund operating expenses do not exceed the following rates annually of these funds’ average daily net assets:
New York Fund | North Carolina Fund | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | |||||||||||||||||||
Class A | 0.90% | 0.93% | 0.91% | 0.94% | 0.89% | 0.90% | ||||||||||||||||||
Class B | 1.65% | 1.68% | 1.66% | 1.69% | 1.64% | 1.65% | ||||||||||||||||||
Class C | 1.65% | 1.68% | N/A | N/A | 1.64% | N/A |
These written agreements will continue until modified by the funds’ Board of Trustees, but such agreements will continue at least until July 31, 2014. For the year ended March 31, 2014, this reduction amounted to $44,748 for the West Virginia Fund, and is included in the reduction of total expenses in the Statements of Operations. For the year ended March 31, 2014, the actual operating expenses for the New York Fund, North Carolina Fund, South Carolina Fund, Tennessee Fund and Virginia Fund did not exceed the limits described above and therefore, the investment adviser did not pay any portion of these funds’ expenses under these agreements.
Distributor – MFS Fund Distributors, Inc. (MFD), a wholly-owned subsidiary of MFS, as distributor, received the following amounts for the year ended March 31, 2014, as its portion of the initial sales charge on sales of Class A shares of each fund:
Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | |||||||
$23,876 | $27,519 | $44,845 | $26,166 | $52,747 | $28,912 | $35,559 | $13,607 |
The Board of Trustees has adopted a distribution plan for certain share classes pursuant to Rule 12b-1 of the Investment Company Act of 1940.
Each fund’s distribution plan provides that each fund will pay MFD for services provided by MFD and financial intermediaries in connection with the distribution and servicing of certain share classes. One component of the plan is a distribution fee paid to MFD and another component of the plan is a service fee paid to MFD. MFD may subsequently pay all, or a portion, of the distribution and/or service fees to financial intermediaries.
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Distribution Plan Fee Table:
CLASS A | ||||||||||||||||||||
Distribution Fee Rate (d) | Service Fee Rate (d) | Total Distribution Plan (d) | Annual Effective Rate (e) | Distribution Fee | ||||||||||||||||
Mississippi Fund | — | 0.25% | 0.25% | 0.10% | $239,305 | |||||||||||||||
New York Fund | — | 0.25% | 0.25% | 0.25% | 414,685 | |||||||||||||||
North Carolina Fund | — | 0.25% | 0.25% | 0.25% | 791,217 | |||||||||||||||
Pennsylvania Fund | — | 0.25% | 0.25% | 0.10% | 318,269 | |||||||||||||||
South Carolina Fund | — | 0.25% | 0.25% | 0.25% | 465,829 | |||||||||||||||
Tennessee Fund | — | 0.25% | 0.25% | 0.25% | 286,313 | |||||||||||||||
Virginia Fund | — | 0.25% | 0.25% | 0.25% | 711,027 | |||||||||||||||
West Virginia Fund | — | 0.25% | 0.25% | 0.25% | 338,637 | |||||||||||||||
CLASS B | ||||||||||||||||||||
Distribution Fee Rate (d) | Service Fee Rate (d) | Total Distribution Plan (d) | Annual Effective Rate (e) | Distribution Fee | ||||||||||||||||
Mississippi Fund | 0.75% | 0.25% | 1.00% | 0.79% | $22,958 | |||||||||||||||
New York Fund | 0.75% | 0.25% | 1.00% | 1.00% | 60,037 | |||||||||||||||
North Carolina Fund | 0.75% | 0.25% | 1.00% | 1.00% | 61,104 | |||||||||||||||
Pennsylvania Fund | 0.75% | 0.25% | 1.00% | 0.87% | 85,470 | |||||||||||||||
South Carolina Fund | 0.75% | 0.25% | 1.00% | 1.00% | 60,337 | |||||||||||||||
Tennessee Fund | 0.75% | 0.25% | 1.00% | 1.00% | 22,936 | |||||||||||||||
Virginia Fund | 0.75% | 0.25% | 1.00% | 1.00% | 27,376 | |||||||||||||||
West Virginia Fund | 0.75% | 0.25% | 1.00% | 1.00% | 15,481 | |||||||||||||||
CLASS C | ||||||||||||||||||||
Distribution Fee Rate (d) | Service Fee Rate (d) | Total Distribution Plan (d) | Annual Rate (e) | Distribution and Service Fee | ||||||||||||||||
New York Fund | 0.75% | 0.25% | 1.00% | 1.00% | $289,505 | |||||||||||||||
North Carolina Fund | 0.75% | 0.25% | 1.00% | 1.00% | 694,468 | |||||||||||||||
Virginia Fund | 0.75% | 0.25% | 1.00% | 1.00% | 297,889 |
Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | |||||||||||||||||||||||||
Total Distribution and Service Fees | $262,263 | $764,227 | $1,546,789 | $403,739 | $526,166 | $309,249 | $1,036,292 | $354,118 |
(d) | In accordance with the distribution plan for certain classes, each fund pays distribution and/or service fees equal to these annual percentage rates of each class’s average daily net assets. The distribution and service fee rates disclosed by class represent the current rates in effect at the end of the reporting period. Any rate changes, if applicable, are detailed below. |
(e) | The annual effective rates represent actual fees incurred under the distribution plan for the year ended March 31, 2014 based on each class’s average daily net assets. MFD has voluntarily agreed to rebate a portion of each class’s 0.25% service fee attributable to accounts for which MFD retains the 0.25% service fee except for accounts attributable to MFS or its affiliates’ seed money. For the year ended March 31, 2014, these rebates amounted to the following, and are included in the reduction of total expenses in the Statements of Operations: |
Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | |||||||||||||||||||||||||
Class A | $4,129 | $7,548 | $11,057 | $285 | $4,651 | $1,699 | $5,434 | $2,821 | ||||||||||||||||||||||||
Class B | — | — | — | 1 | 11 | — | — | — | ||||||||||||||||||||||||
Class C | N/A | — | 67 | N/A | N/A | N/A | 33 | N/A |
Mississippi Fund: MFD has agreed in writing to reduce the Class A service fee rate to 0.10%. This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until July 31, 2014. This reduction amounted to $143,584 which is included in the reduction of total expenses in the Statements of Operations. The service fee rate attributable to Class B shares within the first year of purchase is 0.25%. The service fee rate attributable to all other Class B shares has been reduced by MFD to 0.00% under a written agreement that will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until July 31, 2014. This reduction amounted to $4,819, which is included in the reduction of total expenses in the Statements of Operations. |
Pennsylvania Fund: MFD has agreed in writing to reduce the Class A service fee rate to 0.10%. This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue until at least July 31, 2014. This reduction amounted to $190,962 which is included in the reduction of total expenses in the Statements of Operations. The service fee rate attributable to Class B shares within the first year of purchase is 0.25%. The service fee rate attributable to all other Class B shares has been reduced by MFD to 0.10% under a written agreement that will continue until modified by the fund’s Board of Trustees, but will continue at least until July 31, 2014. This reduction amounted to $11,350 which is included in the reduction of total expenses in the Statements of Operations. |
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Certain Class A shares are subject to a contingent deferred sales charge (CDSC) in the event of a shareholder redemption within 18 months of purchase for shares purchased on or after August 1, 2012, and within 24 months of purchase for shares purchased prior to August 1, 2012. Class C shares are subject to a CDSC in the event of a shareholder redemption within 12 months of purchase. Class B shares are subject to a CDSC in the event of a shareholder redemption within six years of purchase. All contingent deferred sales charges are paid to MFD and during the year ended March 31, 2014, were as follows:
CDSC imposed | Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | ||||||||||||||||||||||||
Class A | $514 | $43 | $5,324 | $801 | $3,591 | $— | $54,244 | $139 | ||||||||||||||||||||||||
Class B | 2,130 | 16,094 | 17,074 | 27,617 | 12,918 | 2,265 | 7,124 | 4,175 | ||||||||||||||||||||||||
Class C | N/A | 7,447 | 13,510 | N/A | N/A | N/A | 6,640 | N/A |
Shareholder Servicing Agent – MFS Service Center, Inc. (MFSC), a wholly-owned subsidiary of MFS, receives a fee from each fund for its services as shareholder servicing agent calculated as a percentage of the average daily net assets of each fund as determined periodically under the supervision of the funds’ Board of Trustees. For the year ended March 31, 2014, each fund paid the following fee, which equated to the following annual percentage of each fund’s average daily net assets:
Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | |||||||||||||||||||||||||
Expenses paid | $10,510 | $27,662 | $43,285 | $24,791 | $19,833 | $12,502 | $39,574 | $14,799 | ||||||||||||||||||||||||
Percent of average daily net assets | 0.0107% | 0.0138% | 0.0110% | 0.0183% | 0.0103% | 0.0107% | 0.0125% | 0.0108% |
MFSC also receives payment from each fund for out-of-pocket expenses, sub-accounting and other shareholder servicing costs which may be paid to affiliated and unaffiliated service providers. For the year ended March 31, 2014, these out-of-pocket expenses, sub-accounting and other shareholder servicing costs amounted to the following:
Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | |||||||
$60,257 | $109,648 | $315,684 | $86,377 | $134,710 | $85,926 | $240,934 | $120,560 |
Administrator – MFS provides certain financial, legal, shareholder communications, compliance, and other administrative services to each fund. Under an administrative services agreement, each fund partially reimburses MFS the costs incurred to provide these services. Each fund is charged an annual fixed amount of $17,500 plus a fee based on average daily net assets. The administrative services fee incurred for the year ended March 31, 2014 was equivalent to an annual effective rate of each fund’s average daily net assets as follows:
Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | |||||||||||||||||||||||||
Percentage of average daily net assets | 0.0237% | 0.0177% | 0.0149% | 0.0205% | 0.0180% | 0.0218% | 0.0156% | 0.0204% |
Trustees’ and Officers’ Compensation – Each fund pays compensation to independent Trustees in the form of a retainer, attendance fees, and additional compensation to Board and Committee chairpersons. Each fund does not pay compensation directly to Trustees or officers of each fund who are also officers of the investment adviser, all of whom receive remuneration for their services to each fund from MFS. Certain officers and Trustees of each fund are officers or directors of MFS, MFD, and MFSC.
Prior to December 31, 2001, each fund had an unfunded defined benefit plan (“DB plan”) for independent Trustees. As of December 31, 2001, the Board took action to terminate the DB plan with respect to then-current and any future independent Trustees, such that the DB plan covers only certain of those former independent Trustees who retired on or before December 31, 2001. The DB plan resulted in a pension expense for each fund. These amounts are included in “Independent Trustees’ compensation” in the Statements of Operations and were as follows:
Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | |||||||
$93 | $98 | $552 | $94 | $531 | $98 | $549 | $530 |
The liability for deferred retirement benefits payable to certain independent Trustees under the DB plan amounted to the following at March 31, 2014, and is included in “Payable for independent Trustees’ compensation” in the Statements of Assets and Liabilities:
Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | |||||||
$3,421 | $4,424 | $6,900 | $3,388 | $6,910 | $4,400 | $6,916 | $6,908 |
Other – These funds and certain other funds managed by MFS (the funds) have entered into services agreements (the Agreements) which provide for payment of fees by the funds to Tarantino LLC and Griffin Compliance LLC in return for the provision of services of an Independent Chief Compliance Officer (ICCO) and Assistant ICCO, respectively, for the funds. The ICCO and Assistant ICCO are
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officers of the funds and the sole members of Tarantino LLC and Griffin Compliance LLC, respectively. The funds can terminate the Agreements with Tarantino LLC and Griffin Compliance LLC at any time under the terms of the Agreements. For the year ended March 31, 2014, the aggregate fees paid by each fund to Tarantino LLC and Griffin Compliance LLC amounted to the following and are included in “Miscellaneous” expense in the Statements of Operations:
Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | |||||||
$573 | $1,172 | $2,329 | $807 | $1,142 | $691 | $1,861 | $800 |
MFS has agreed to reimburse the funds for a portion of the payments made by each fund in the following amounts, which are included in the reduction of total expenses in the Statements of Operations. Additionally, MFS has agreed to bear all expenses associated with office space, other administrative support, and supplies provided to the ICCO and Assistant ICCO:
Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | |||||||
$223 | $451 | $902 | $312 | $436 | $265 | $715 | $304 |
Each fund invests in the MFS Institutional Money Market Portfolio which is managed by MFS and seeks current income consistent with preservation of capital and liquidity. Income earned on this investment is included in “Dividends from underlying affiliated funds” in the Statements of Operations. This money market fund does not pay a management fee to MFS.
(4) | Portfolio Securities |
Purchases and sales of investments, other than short-term obligations, were as follows:
Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | |||||||||||||||||||||||||
Purchases | $18,037,456 | $48,459,954 | $65,600,550 | $28,216,448 | $44,666,254 | $29,041,414 | $75,158,926 | $22,433,310 | ||||||||||||||||||||||||
Sales | $40,980,347 | $76,397,562 | $175,723,140 | $61,580,701 | $81,890,512 | $49,733,148 | $141,345,273 | $47,124,077 |
(5) | Shares of Beneficial Interest |
Each fund’s Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest. Transactions in fund shares were as follows:
Mississippi Fund | New York Fund | |||||||||||||||||||||||||||||||
Year ended 3/31/14 | Year ended 3/31/13 | Year ended 3/31/14 | Year ended 3/31/13 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | ||||||||||||||||||||||||||||||||
Class A | 575,806 | $5,658,252 | 1,208,127 | $12,467,119 | 886,597 | $9,575,536 | 1,516,731 | $17,484,941 | ||||||||||||||||||||||||
Class B | 8,716 | 84,582 | 91,242 | 940,244 | 47,536 | 516,424 | 192,782 | 2,221,189 | ||||||||||||||||||||||||
Class C | — | — | — | — | 195,403 | 2,118,296 | 528,552 | 6,070,863 | ||||||||||||||||||||||||
584,522 | $5,742,834 | 1,299,369 | $13,407,363 | 1,129,536 | $12,210,256 | 2,238,065 | $25,776,993 | |||||||||||||||||||||||||
Shares issued to shareholders in reinvestment of distributions | ||||||||||||||||||||||||||||||||
Class A | 343,903 | $3,338,405 | 316,305 | $3,270,514 | 471,435 | $5,070,665 | 449,215 | $5,182,772 | ||||||||||||||||||||||||
Class B | 6,898 | 66,945 | 6,056 | 62,694 | 12,361 | 132,696 | 11,372 | 130,868 | ||||||||||||||||||||||||
Class C | — | — | — | — | 64,519 | 693,866 | 65,010 | 749,287 | ||||||||||||||||||||||||
350,801 | $3,405,350 | 322,361 | $3,333,208 | 548,315 | $5,897,227 | 525,597 | $6,062,927 | |||||||||||||||||||||||||
Shares reacquired | ||||||||||||||||||||||||||||||||
Class A | (3,225,089 | ) | $(31,421,792 | ) | (1,739,790 | ) | $(17,982,782 | ) | (3,284,151 | ) | $(35,123,279 | ) | (1,913,726 | ) | $(22,026,235 | ) | ||||||||||||||||
Class B | (56,128 | ) | (540,149 | ) | (49,420 | ) | (511,861 | ) | (158,271 | ) | (1,697,378 | ) | (154,747 | ) | (1,775,282 | ) | ||||||||||||||||
Class C | — | — | — | — | (1,180,041 | ) | (12,663,958 | ) | (355,342 | ) | (4,103,737 | ) | ||||||||||||||||||||
(3,281,217 | ) | $(31,961,941 | ) | (1,789,210 | ) | $(18,494,643 | ) | (4,622,463 | ) | $(49,484,615 | ) | (2,423,815 | ) | $(27,905,254 | ) | |||||||||||||||||
Net change | ||||||||||||||||||||||||||||||||
Class A | (2,305,380 | ) | $(22,425,135 | ) | (215,358 | ) | $(2,245,149 | ) | (1,926,119 | ) | $(20,477,078 | ) | 52,220 | $641,478 | ||||||||||||||||||
Class B | (40,514 | ) | (388,622 | ) | 47,878 | 491,077 | (98,374 | ) | (1,048,258 | ) | 49,407 | 576,775 | ||||||||||||||||||||
Class C | — | — | — | — | (920,119 | ) | (9,851,796 | ) | 238,220 | 2,716,413 | ||||||||||||||||||||||
(2,345,894 | ) | $(22,813,757 | ) | (167,480 | ) | $(1,754,072 | ) | (2,944,612 | ) | $(31,377,132 | ) | 339,847 | $3,934,666 |
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North Carolina Fund | Pennsylvania Fund | |||||||||||||||||||||||||||||||
Year ended 3/31/14 | Year ended 3/31/13 | Year ended 3/31/14 | Year ended 3/31/13 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | ||||||||||||||||||||||||||||||||
Class A | 4,263,997 | $49,668,448 | 5,408,039 | $67,474,845 | 1,112,266 | $11,349,810 | 2,765,146 | $29,455,693 | ||||||||||||||||||||||||
Class B | 9,396 | 109,323 | 92,547 | 1,148,649 | 47,744 | 477,545 | 161,293 | 1,720,253 | ||||||||||||||||||||||||
Class C | 339,546 | 4,050,516 | 1,575,868 | 19,644,273 | — | — | — | — | ||||||||||||||||||||||||
4,612,939 | $53,828,287 | 7,076,454 | $88,267,767 | 1,160,010 | $11,827,355 | 2,926,439 | $31,175,946 | |||||||||||||||||||||||||
Shares issued to shareholders in reinvestment of distributions | ||||||||||||||||||||||||||||||||
Class A | 868,752 | $10,078,524 | 847,500 | $10,601,429 | 380,223 | $3,800,493 | 374,271 | $3,988,085 | ||||||||||||||||||||||||
Class B | 15,432 | 178,660 | 17,003 | 212,479 | 22,144 | �� | 222,035 | 24,923 | 266,102 | |||||||||||||||||||||||
Class C | 152,744 | 1,769,562 | 144,538 | 1,807,335 | — | — | — | — | ||||||||||||||||||||||||
1,036,928 | $12,026,746 | 1,009,041 | $12,621,243 | 402,367 | $4,022,528 | 399,194 | $4,254,187 | |||||||||||||||||||||||||
Shares reacquired | ||||||||||||||||||||||||||||||||
Class A | (12,087,936 | ) | $(140,094,622 | ) | (4,612,798 | ) | $(57,585,563 | ) | (4,819,535 | ) | $(48,046,071 | ) | (1,629,269 | ) | $(17,335,307 | ) | ||||||||||||||||
Class B | (201,334 | ) | (2,333,806 | ) | (134,445 | ) | (1,671,548 | ) | (390,625 | ) | (3,887,824 | ) | (186,390 | ) | (1,989,633 | ) | ||||||||||||||||
Class C | (2,664,955 | ) | (30,823,685 | ) | (917,879 | ) | (11,431,977 | ) | — | — | — | — | ||||||||||||||||||||
(14,954,225 | ) | $(173,252,113 | ) | (5,665,122 | ) | $(70,689,088 | ) | (5,210,160 | ) | $(51,933,895 | ) | (1,815,659 | ) | $(19,324,940 | ) | |||||||||||||||||
Net change | ||||||||||||||||||||||||||||||||
Class A | (6,955,187 | ) | $(80,347,650 | ) | 1,642,741 | $20,490,711 | (3,327,046 | ) | $(32,895,768 | ) | 1,510,148 | $16,108,471 | ||||||||||||||||||||
Class B | (176,506 | ) | (2,045,823 | ) | (24,895 | ) | (310,420 | ) | (320,737 | ) | (3,188,244 | ) | (174 | ) | (3,278 | ) | ||||||||||||||||
Class C | (2,172,665 | ) | (25,003,607 | ) | 802,527 | 10,019,631 | — | — | — | — | ||||||||||||||||||||||
(9,304,358 | ) | $(107,397,080 | ) | 2,420,373 | $30,199,922 | (3,647,783 | ) | $(36,084,012 | ) | 1,509,974 | $16,105,193 |
South Carolina Fund | Tennessee Fund | |||||||||||||||||||||||||||||||
Year ended 3/31/14 | Year ended 3/31/13 | Year ended 3/31/14 | Year ended 3/31/13 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | ||||||||||||||||||||||||||||||||
Class A | 1,134,961 | $13,565,974 | 3,498,436 | $44,368,310 | 1,004,199 | $10,475,503 | 2,425,577 | $26,772,623 | ||||||||||||||||||||||||
Class B | 19,670 | 239,208 | 139,120 | 1,754,617 | 12,313 | 131,482 | 58,718 | 645,747 | ||||||||||||||||||||||||
1,154,631 | $13,805,182 | 3,637,556 | $46,122,927 | 1,016,512 | $10,606,985 | 2,484,295 | $27,418,370 | |||||||||||||||||||||||||
Shares issued to shareholders in reinvestment of distributions | ||||||||||||||||||||||||||||||||
Class A | 466,084 | $5,517,503 | 435,594 | $5,523,200 | 306,456 | $3,160,087 | 289,980 | $3,196,408 | ||||||||||||||||||||||||
Class B | 13,030 | 154,200 | 13,202 | 167,331 | 4,624 | 47,634 | 4,707 | 51,846 | ||||||||||||||||||||||||
479,114 | $5,671,703 | 448,796 | $5,690,531 | 311,080 | $3,207,721 | 294,687 | $3,248,254 | |||||||||||||||||||||||||
Shares reacquired | ||||||||||||||||||||||||||||||||
Class A | (4,941,166 | ) | $(58,277,211 | ) | (2,205,326 | ) | $(27,994,936 | ) | (3,390,425 | ) | $(34,817,044 | ) | (1,378,254 | ) | $(15,218,250 | ) | ||||||||||||||||
Class B | (185,895 | ) | (2,209,472 | ) | (105,105 | ) | (1,334,958 | ) | (81,470 | ) | (827,778 | ) | (50,176 | ) | (552,680 | ) | ||||||||||||||||
(5,127,061 | ) | $(60,486,683 | ) | (2,310,431 | ) | $(29,329,894 | ) | (3,471,895 | ) | $(35,644,822 | ) | (1,428,430 | ) | $(15,770,930 | ) | |||||||||||||||||
Net change | ||||||||||||||||||||||||||||||||
Class A | (3,340,121 | ) | $(39,193,734 | ) | 1,728,704 | $21,896,574 | (2,079,770 | ) | $(21,181,454 | ) | 1,337,303 | $14,750,781 | ||||||||||||||||||||
Class B | (153,195 | ) | (1,816,064 | ) | 47,217 | 586,990 | (64,533 | ) | (648,662 | ) | 13,249 | 144,913 | ||||||||||||||||||||
(3,493,316 | ) | $(41,009,798 | ) | 1,775,921 | $22,483,564 | (2,144,303 | ) | $(21,830,116 | ) | 1,350,552 | $14,895,694 |
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Notes to Financial Statements – continued
Virginia Fund | West Virginia Fund | |||||||||||||||||||||||||||||||
Year ended 3/31/14 | Year ended 3/31/13 | Year ended 3/31/14 | Year ended 3/31/13 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | ||||||||||||||||||||||||||||||||
Class A | 4,042,736 | $44,558,000 | 3,267,014 | $38,443,282 | 371,723 | $4,105,536 | 1,293,968 | $15,137,213 | ||||||||||||||||||||||||
Class B | 4,151 | 45,221 | 20,125 | 237,791 | 4,462 | 52,185 | 9,245 | 108,391 | ||||||||||||||||||||||||
Class C | 159,258 | 1,785,055 | 637,917 | 7,521,087 | — | — | — | — | ||||||||||||||||||||||||
4,206,145 | $46,388,276 | 3,925,056 | $46,202,160 | 376,185 | $4,157,721 | 1,303,213 | $15,245,604 | |||||||||||||||||||||||||
Shares issued to shareholders in reinvestment of distributions | ||||||||||||||||||||||||||||||||
Class A | 744,828 | $8,228,957 | 714,616 | $8,415,159 | 377,576 | $4,130,912 | 347,667 | $4,069,651 | ||||||||||||||||||||||||
Class B | 5,459 | 60,312 | 6,307 | 74,172 | 2,985 | 32,631 | 3,240 | 37,906 | ||||||||||||||||||||||||
Class C | 63,773 | 704,012 | 56,099 | 660,306 | — | — | — | — | ||||||||||||||||||||||||
814,060 | $8,993,281 | 777,022 | $9,149,637 | 380,561 | $4,163,543 | 350,907 | $4,107,557 | |||||||||||||||||||||||||
Shares reacquired | ||||||||||||||||||||||||||||||||
Class A | (10,176,045 | ) | $(112,159,693 | ) | (2,811,966 | ) | $(33,066,376 | ) | (2,990,501 | ) | $(32,492,522 | ) | (960,701 | ) | $(11,232,675 | ) | ||||||||||||||||
Class B | (102,606 | ) | (1,128,884 | ) | (61,646 | ) | (723,557 | ) | (52,396 | ) | (568,143 | ) | (42,724 | ) | (499,174 | ) | ||||||||||||||||
Class C | (1,017,050 | ) | (11,179,930 | ) | (446,987 | ) | (5,258,423 | ) | — | — | — | — | ||||||||||||||||||||
(11,295,701 | ) | $(124,468,507 | ) | (3,320,599 | ) | $(39,048,356 | ) | (3,042,897 | ) | $(33,060,665 | ) | (1,003,425 | ) | $(11,731,849 | ) | |||||||||||||||||
Net change | ||||||||||||||||||||||||||||||||
Class A | (5,388,481 | ) | $(59,372,736 | ) | 1,169,664 | $13,792,065 | (2,241,202 | ) | $(24,256,074 | ) | 680,934 | $7,974,189 | ||||||||||||||||||||
Class B | (92,996 | ) | (1,023,351 | ) | (35,214 | ) | (411,594 | ) | (44,949 | ) | (483,327 | ) | (30,239 | ) | (352,877 | ) | ||||||||||||||||
Class C | (794,019 | ) | (8,690,863 | ) | 247,029 | 2,922,970 | — | — | — | — | ||||||||||||||||||||||
(6,275,496 | ) | $(69,086,950 | ) | 1,381,479 | $16,303,441 | (2,286,151 | ) | $(24,739,401 | ) | 650,695 | $7,621,312 |
(6) | Line of Credit |
Each fund and certain other funds managed by MFS participate in a $1.1 billion unsecured committed line of credit, subject to a $1 billion sublimit, provided by a syndication of banks under a credit agreement. Borrowings may be made for temporary financing needs. Interest is charged to each fund, based on its borrowings, generally at a rate equal to the higher of the Federal Reserve funds rate or one month LIBOR plus an agreed upon spread. A commitment fee, based on the average daily, unused portion of the committed line of credit, is allocated among the participating funds at the end of each calendar quarter. In addition, each fund and other funds managed by MFS have established unsecured uncommitted borrowing arrangements with certain banks for temporary financing needs. Interest is charged to each fund, based on its borrowings, at a rate equal to the Federal Reserve funds rate plus an agreed upon spread. For the year ended March 31, 2014, each fund’s commitment fee and interest expense were as follows and are included in “Miscellaneous” expense in the Statements of Operations:
Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | |||||||||||||||||||||||||
Commitment Fee | $519 | $1,045 | $2,069 | $714 | $1,006 | $607 | $1,666 | $711 | ||||||||||||||||||||||||
Interest Expense | — | — | — | — | — | — | — | — |
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Notes to Financial Statements – continued
(7) | Transactions in Underlying Affiliated Funds - Affiliated Issuers |
An affiliated issuer of a fund may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. For the purposes of this report, each fund assumes the MFS Institutional Money Market Portfolio to be an affiliated issuer. Each fund’s transactions in the MFS Institutional Money Market Portfolio for the year ended March 31, 2014, are as follows:
Underlying Affiliated Fund - MFS Institutional Money Market Portfolio | ||||||||||||||||
Beginning Shares/Par Amount | Acquisitions Shares/Par Amount | Dispositions Shares/Par Amount | Ending Shares/Par Amount | |||||||||||||
Mississippi Fund | 361,850 | 33,109,250 | (32,239,577) | 1,231,523 | ||||||||||||
New York Fund | 4,835,359 | 64,056,012 | (66,277,729) | 2,613,642 | ||||||||||||
North Carolina Fund | 2,618,244 | 118,015,205 | (120,197,584) | 435,865 | ||||||||||||
Pennsylvania Fund | 4,870,172 | 48,152,047 | (49,870,828) | 3,151,391 | ||||||||||||
South Carolina Fund | 7,947,671 | 71,469,328 | (76,624,799) | 2,792,200 | ||||||||||||
Tennessee Fund | 5,367,445 | 40,806,372 | (44,511,691) | 1,662,126 | ||||||||||||
Virginia Fund | 3,198,956 | 111,813,479 | (111,915,344) | 3,097,091 | ||||||||||||
West Virginia Fund | 3,831,989 | 40,358,386 | (44,190,276) | 99 | ||||||||||||
Realized Gain (Loss) | Capital Gain Distributions | Dividend Income | Ending Value | |||||||||||||
Mississippi Fund | $— | $— | $1,175 | $1,231,523 | ||||||||||||
New York Fund | — | — | 4,705 | 2,613,642 | ||||||||||||
North Carolina Fund | — | — | 4,229 | 435,865 | ||||||||||||
Pennsylvania Fund | — | — | 3,077 | 3,151,391 | ||||||||||||
South Carolina Fund | — | — | 4,031 | 2,792,200 | ||||||||||||
Tennessee Fund | — | — | 2,488 | 1,662,126 | ||||||||||||
Virginia Fund | — | — | 3,996 | 3,097,091 | ||||||||||||
West Virginia Fund | — | — | 2,294 | 99 |
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of MFS Municipal Series Trust and the Shareholders of MFS Mississippi Municipal Bond Fund, MFS New York Municipal Bond Fund, MFS North Carolina Municipal Bond Fund, MFS Pennsylvania Municipal Bond Fund, MFS South Carolina Municipal Bond Fund, MFS Tennessee Municipal Bond Fund, MFS Virginia Municipal Bond Fund and MFS West Virginia Municipal Bond Fund:
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of MFS Mississippi Municipal Bond Fund, MFS New York Municipal Bond Fund, MFS North Carolina Municipal Bond Fund, MFS Pennsylvania Municipal Bond Fund, MFS South Carolina Municipal Bond Fund, MFS Tennessee Municipal Bond Fund, MFS Virginia Municipal Bond Fund and MFS West Virginia Municipal Bond Fund (each a series of MFS Municipal Series Trust) (the “Funds”) as of March 31, 2014, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of March 31, 2014, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2014, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
May 13, 2014
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TRUSTEES AND OFFICERS — IDENTIFICATION AND BACKGROUND
The Trustees and Officers of the Trust, as of May 1, 2014, are listed below, together with their principal occupations during the past five years. (Their titles may have varied during that period.) The address of each Trustee and Officer is 111 Huntington Avenue, Boston, Massachusetts 02199-7618. It is expected that the Board will appoint Mr. Timothy M. Fagan as Chief Compliance Officer of the MFS Funds on November 1, 2014.
Name, Age | Position(s) Held with Fund | Trustee/Officer Since (h) | Principal Occupations During the Past Five Years | Other Directorships (j) | ||||
INTERESTED TRUSTEES | ||||||||
Robert J. Manning (k) (Age 50) | Trustee | February 2004 | Massachusetts Financial Services Company, Chairman, Chief Executive Officer and Director; President (until 2009); Chief Investment Officer (until 2010) | N/A | ||||
Robin A. Stelmach (k) (Age 52) | Trustee | January 2014 | Massachusetts Financial Services Company, Executive Vice President and Chief Operating Officer | N/A | ||||
INDEPENDENT TRUSTEES | ||||||||
David H. Gunning (Age 71) | Trustee and Chair of Trustees | January 2004 | Private investor | Lincoln Electric Holdings, Inc. (welding equipment manufacturer), Director; Development Alternatives, Inc. (consulting), Director/Non-Executive Chairman | ||||
Steven E. Buller (Age 62) | Trustee | February 2014 | Chairman, Financial Accounting Standards Advisory Council; Standing Advisory Group, Public Company Accounting Oversight Board, Member; BlackRock, Inc. (investment management), Managing Director (until 2014), BlackRock Finco (investment management), UK, Director (until 2014) | N/A | ||||
Robert E. Butler (Age 72) | Trustee | January 2006 | Consultant – investment company industry regulatory and compliance matters | N/A | ||||
Maureen R. Goldfarb (Age 59) | Trustee | January 2009 | Private investor | N/A | ||||
William R. Gutow (Age 72) | Trustee | December 1993 | Private investor and real estate consultant; Capitol Entertainment Management Company (video franchise), Vice Chairman | Texas Donuts (donut franchise), Vice Chairman (until 2010) | ||||
Michael Hegarty (Age 69) | Trustee | December 2004 | Private investor | Brookfield Office Properties, Inc. (real estate), Director; Rouse Properties Inc. (real estate), Director; Capmark Financial Group Inc. (real estate), Director | ||||
John P. Kavanaugh (Age 59) | Trustee | January 2009 | Private investor | N/A | ||||
Laurie J. Thomsen (Age 56) | Trustee | March 2005 | Private investor; New Profit, Inc. (venture philanthropy), Executive Partner (until 2010) | The Travelers Companies (insurance), Director | ||||
Robert W. Uek (Age 72) | Trustee | January 2006 | Consultant to investment company industry | N/A | ||||
OFFICERS | ||||||||
John M. Corcoran (k) (Age 49) | President | October 2008 | Massachusetts Financial Services Company, Senior Vice President | N/A | ||||
Christopher R. Bohane (k) (Age 40) | Assistant Secretary and Assistant Clerk | July 2005 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | N/A |
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Trustees and Officers – continued
Name, Age | Position(s) Held with Fund | Trustee/Officer Since (h) | Principal Occupations During the Past Five Years | Other Directorships (j) | ||||
Kino Clark (k) (Age 45) | Assistant Treasurer | January 2012 | Massachusetts Financial Services Company, Vice President | N/A | ||||
Thomas H. Connors (k) (Age 54) | Assistant Secretary and Assistant Clerk | September 2012 | Massachusetts Financial Services Company, Vice President and Senior Counsel; Deutsche Investment Management Americas Inc. (financial service provider), Director and Senior Counsel (until 2012) | N/A | ||||
Ethan D. Corey (k) (Age 50) | Assistant Secretary and Assistant Clerk | July 2005 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | N/A | ||||
David L. DiLorenzo (k) (Age 45) | Treasurer | July 2005 | Massachusetts Financial Services Company, Senior Vice President | N/A | ||||
Robyn L. Griffin (Age 38) | Assistant Independent Chief Compliance Officer | August 2008 | Griffin Compliance LLC (provider of compliance services), Principal | N/A | ||||
Brian E. Langenfeld (k) (Age 41) | Assistant Secretary and Assistant Clerk | June 2006 | Massachusetts Financial Services Company, Vice President and Senior Counsel | N/A | ||||
Susan S. Newton (k) (Age 64) | Assistant Secretary and Assistant Clerk | May 2005 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | N/A | ||||
Susan A. Pereira (k) (Age 43) | Assistant Secretary and Assistant Clerk | July 2005 | Massachusetts Financial Services Company, Vice President and Senior Counsel | N/A | ||||
Kasey L. Phillips (k) (Age 43) | Assistant Treasurer | September 2012 | Massachusetts Financial Services Company, Vice President; Wells Fargo Funds Management, LLC, Senior Vice President, Fund Treasurer (until 2012) | N/A | ||||
Mark N. Polebaum (k) (Age 61) | Secretary and Clerk | January 2006 | Massachusetts Financial Services Company, Executive Vice President, General Counsel and Secretary | N/A | ||||
Frank L. Tarantino (l) (Age 70) | Independent Chief Compliance Officer | June 2004 | Tarantino LLC (provider of compliance services), Principal | N/A | ||||
Richard S. Weitzel (k) (Age 43) | Assistant Secretary and Assistant Clerk | October 2007 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | N/A | ||||
James O. Yost (k) (Age 53) | Deputy Treasurer | September 1990 | Massachusetts Financial Services Company, Senior Vice President | N/A |
(h) | Date first appointed to serve as Trustee/officer of an MFS Fund. Each Trustee has served continuously since appointment unless indicated otherwise. For the period from December 15, 2004 until February 22, 2005, Mr. Manning served as Advisory Trustee. For the period October 2008, until January 2012, Mr. Corcoran served as Treasurer of the Funds. Prior to January 2012, Messrs. DiLorenzo and Yost served as Assistant Treasurers of the Funds. |
(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 position with MFS. The address of MFS is 111 Huntington Avenue, Boston, Massachusetts 02199-7618. |
(l) | Mr. Tarantino will retire as Independent Chief Compliance Officer of the MFS Funds on October 31, 2014. It is expected that Mr. Tarantino will continue after that date as an Independent Senior Officer of the MFS Funds. |
Each Trustee (except Ms. Stelmach and Mr. Buller) has been elected by shareholders and each Trustee and officer holds office until his or her successor is chosen and qualified or until his or her earlier death, resignation, retirement or removal. The Trust does not hold annual meetings for the purpose of electing Trustees, and Trustees are not elected for fixed terms. Messrs. Butler, Kavanaugh, Uek and Ms. Thomsen are members of the Trust’s Audit Committee.
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Trustees and Officers – continued
Each of the Fund’s Trustees and officers holds comparable positions with certain other funds of which MFS or a subsidiary is the investment adviser or distributor, and, in the case of the officers, with certain affiliates of MFS. As of January 1, 2014, the Trustees served as board members of 142 funds within the MFS Family of Funds.
The Statement of Additional Information for the Fund includes further information about the Trustees and is available without charge upon request by calling 1-800-225-2606.
Investment Adviser Massachusetts Financial Services Company 111 Huntington Avenue Boston, MA 02199-7618 Distributor MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618 Portfolio Manager Michael Dawson | Custodian JPMorgan Chase Bank, NA 4 Metrotech Center New York, NY 11245
Independent Registered Public Accounting Firm Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 |
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BOARD REVIEW OF INVESTMENT ADVISORY AGREEMENT
A discussion regarding the Board’s most recent review and renewal of each fund’s Investment Advisory Agreement with MFS is available by clicking on the fund’s name under “Mutual Funds” in the “Products” section of the MFS Web site (mfs.com).
PROXY VOTING POLICIES AND INFORMATION
MFS votes proxies on behalf of the funds pursuant to proxy voting policies and procedures that are available without charge, upon request, by calling 1-800-225-2606, by visiting the Proxy Voting section of mfs.com or by visiting the SEC’s Web site at http://www.sec.gov.
Information regarding how each fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available without charge by visiting the Proxy Voting section of mfs.com or by visiting the SEC’s Web site at http://www.sec.gov.
QUARTERLY PORTFOLIO DISCLOSURE
Each fund will file a complete schedule of portfolio holdings with the Securities and Exchange Commission (the Commission) for the first and third quarters of each fiscal year on Form N-Q. A shareholder can obtain the quarterly portfolio holdings report at mfs.com. Each fund’s Form N-Q is also available on the EDGAR database on the Commission’s Internet Web site at http://www.sec.gov, and may be reviewed and copied at the:
Public Reference Room
Securities and Exchange Commission
100 F Street, NE, Room 1580
Washington, D.C. 20549
Information on the operation of the Public Reference Room may be obtained by calling the Commission at 1-800-SEC-0330. Copies of each fund’s Form N-Q also may be obtained, upon payment of a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov or by writing the Public Reference Section at the above address.
From time to time, MFS may post important information about each fund or the MFS funds on the MFS web site (mfs.com). This information is available by visiting the “News & Commentary” section of mfs.com or by clicking on the fund’s name under “Mutual Funds” in the “Products” section of mfs.com.
FEDERAL TAX INFORMATION (unaudited)
The funds will notify shareholders of amounts for use in preparing 2014 income tax forms in January 2015. The following information is provided pursuant to provisions of the Internal Revenue Code.
The funds below designate the following amounts as capital gain dividends paid during the fiscal year:
Mississippi Fund | $180,000 | |||
North Carolina Fund | 2,007,000 |
Of the dividends paid from net investment income during the fiscal year, the following percentages were designated as exempt interest dividends for federal income tax purposes. If each fund has earned income on private activity bonds, a portion of the dividends paid may be considered a tax preference item for purposes of computing a shareholder’s alternative minimum tax.
Exempt Interest Dividends | ||||
Mississippi Fund | 100.00% | |||
New York Fund | 100.00% | |||
North Carolina Fund | 100.00% | |||
Pennsylvania Fund | 100.00% | |||
South Carolina Fund | 98.46% | |||
Tennessee Fund | 100.00% | |||
Virginia Fund | 100.00% | |||
West Virginia Fund | 100.00% |
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rev. 3/11
| WHAT DOES MFS DO WITH YOUR
|
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. |
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Page 2 |
Who we are | ||
Who is providing this notice? | MFS Funds, MFS Investment Management, MFS Institutional Advisors, Inc., MFS Fund Distributors, Inc., MFS Heritage Trust Company, and MFS Service Center, Inc. |
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 and 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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Save paper with eDelivery.
| MFS® will send you prospectuses, |
reports, and proxies directly via e-mail so you will get information faster with less mailbox clutter.
To sign up:
1. Go to mfs.com.
2. Log in via MFS® Access.
3. Select eDelivery.
If you own your MFS fund shares through a financial institution or a retirement plan, MFS® TALK, MFS® Access, or eDelivery may not be available to you.
WEB SITE
mfs.com
MFS TALK
1-800-637-8255
24 hours a day
ACCOUNT SERVICE AND LITERATURE
Shareholders
1-800-225-2606
Financial advisors
1-800-343-2829
Retirement plan services
1-800-637-1255
MAILING ADDRESS
MFS Service Center, Inc.
P.O. Box 55824
Boston, MA 02205-5824
OVERNIGHT MAIL
MFS Service Center, Inc.
c/o Boston Financial Data Services
30 Dan Road
Canton, MA 02021-2809
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ITEM 2. | CODE OF ETHICS. |
The Registrant has adopted a Code of Ethics pursuant to Section 406 of the Sarbanes-Oxley Act and as defined in Form N-CSR that applies to the Registrant’s principal executive officer and principal financial and accounting officer. During the period covered by this report, the Registrant has not amended any provision in its Code of Ethics (the “Code”) that relates to an element of the Code’s definitions 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 of Ethics is filed as an exhibit to this Form N-CSR.
ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
Messrs. Robert E. Butler, John P. Kavanaugh and Robert W. Uek and Mses. Maryanne L. Roepke and Laurie J. Thomsen, 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. Butler, Kavanaugh and Uek and Mses. Roepke and Thomsen 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. |
The Board of Trustees has appointed Deloitte & Touche LLP (“Deloitte”) to serve as independent accountants to each series of the Registrant (collectively, the “Funds”). The tables below set forth the audit fees billed to the Funds as well as fees for non-audit services provided to the Funds and/or to the Funds’ 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 Funds (“MFS Related Entities”).
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For the fiscal years ended March 31, 2014 and 2013, audit fees billed to the Funds by Deloitte were as follows:
Audit Fees | ||||||||
2014 | 2013 | |||||||
Fees billed by Deloitte: | ||||||||
MFS Alabama Municipal Bond Fund | 43,354 | 42,849 | ||||||
MFS Arkansas Municipal Bond Fund | 43,354 | 42,849 | ||||||
MFS California Municipal Bond Fund | 43,354 | 42,849 | ||||||
MFS Georgia Municipal Bond Fund | 43,354 | 42,849 | ||||||
MFS Maryland Municipal Bond Fund | 43,354 | 42,849 | ||||||
MFS Massachusetts Municipal Bond Fund | 43,354 | 42,849 | ||||||
MFS Mississippi Municipal Bond Fund | 43,354 | 42,849 | ||||||
MFS Municipal Income Fund | 49,415 | 49,339 | ||||||
MFS New York Municipal Bond Fund | 43,354 | 42,849 | ||||||
MFS North Carolina Municipal Bond Fund | 43,354 | 42,849 | ||||||
MFS Pennsylvania Municipal Bond Fund | 43,354 | 42,849 | ||||||
MFS South Carolina Municipal Bond Fund | 43,354 | 42,849 | ||||||
MFS Tennessee Municipal Bond Fund | 43,354 | 42,849 | ||||||
MFS Virginia Municipal Bond Fund | 43,354 | 42,849 | ||||||
MFS West Virginia Municipal Bond Fund | 43,354 | 42,849 | ||||||
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Total | 656,371 | 649,225 |
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For the fiscal years ended March 31, 2014 and 2013, fees billed by Deloitte for audit-related, tax and other services provided to the Funds 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 | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Fees billed by Deloitte: | ||||||||||||||||||||||||
To MFS Alabama Municipal Bond Fund | 0 | 0 | 5,682 | 5,615 | 1,008 | 1,007 | ||||||||||||||||||
To MFS Arkansas Municipal Bond Fund | 0 | 0 | 5,682 | 5,615 | 1,029 | 1,021 | ||||||||||||||||||
To MFS California Municipal Bond Fund | 0 | 0 | 5,682 | 5,615 | 1,039 | 1,030 | ||||||||||||||||||
To MFS Georgia Municipal Bond Fund | 0 | 0 | 5,682 | 5,615 | 1,010 | 1,007 | ||||||||||||||||||
To MFS Maryland Municipal Bond Fund | 0 | 0 | 5,682 | 5,615 | 1,014 | 1,010 | ||||||||||||||||||
To MFS Massachusetts Municipal Bond Fund | 0 | 0 | 5,682 | 5,615 | 1,036 | 1,028 | ||||||||||||||||||
To MFS Mississippi Municipal Bond Fund | 0 | 0 | 5,682 | 5,615 | 1,014 | 1,011 | ||||||||||||||||||
To MFS Municipal Income Fund | 0 | 0 | 5,742 | 5,674 | 1,282 | 1,189 | ||||||||||||||||||
To MFS New York Municipal Bond Fund | 0 | 0 | 5,682 | 5,615 | 1,028 | 1,021 | ||||||||||||||||||
To MFS North Carolina Municipal Bond Fund | 0 | 0 | 5,682 | 5,615 | 1,056 | 1,042 | ||||||||||||||||||
To MFS Pennsylvania Municipal Bond Fund | 0 | 0 | 5,682 | 5,615 | 1,019 | 1,014 | ||||||||||||||||||
To MFS South Carolina Municipal Bond Fund | 0 | 0 | 5,682 | 5,615 | 1,027 | 1,019 | ||||||||||||||||||
To MFS Tennessee Municipal Bond Fund | 0 | 0 | 5,682 | 5,615 | 1,016 | 1,011 | ||||||||||||||||||
To MFS Virginia Municipal Bond Fund | 0 | 0 | 5,682 | 5,615 | 1,045 | 1,033 | ||||||||||||||||||
To MFS West Virginia Municipal Bond Fund | 0 | 0 | 5,682 | 5,615 | 1,019 | 1,014 | ||||||||||||||||||
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Total fees billed by Deloitte to above Funds: | 0 | 0 | 85,290 | 84,284 | 15,642 | 15,457 | ||||||||||||||||||
Audit-Related Fees1 | Tax Fees2 | All Other Fees3 | ||||||||||||||||||||||
2014 | 20134 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Fees billed by Deloitte: | ||||||||||||||||||||||||
To MFS and MFS Related Entities of MFS Alabama Municipal Bond Fund* | 1,934,406 | 1,214,772 | 0 | 0 | 0 | 0 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS Arkansas Municipal Bond Fund* | 1,934,406 | 1,214,772 | 0 | 0 | 0 | 0 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS California Municipal Bond Fund* | 1,934,406 | 1,214,772 | 0 | 0 | 0 | 0 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS Georgia Municipal Bond Fund* | 1,934,406 | 1,214,772 | 0 | 0 | 0 | 0 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS Maryland Municipal Bond Fund* | 1,934,406 | 1,214,772 | 0 | 0 | 0 | 0 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS Massachusetts Municipal Bond Fund* | 1,934,406 | 1,214,772 | 0 | 0 | 0 | 0 |
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To MFS and MFS Related Entities of MFS Mississippi Municipal Bond Fund* | 1,934,406 | 1,214,772 | 0 | 0 | 0 | 0 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS Municipal Income Fund* | 1,934,406 | 1,214,772 | 0 | 0 | 0 | 0 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS New York Municipal Bond Fund* | 1,934,406 | 1,214,772 | 0 | 0 | 0 | 0 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS North Carolina Municipal Bond Fund* | 1,934,406 | 1,214,772 | 0 | 0 | 0 | 0 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS Pennsylvania Municipal Bond Fund* | 1,934,406 | 1,214,772 | 0 | 0 | 0 | 0 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS South Carolina Municipal Bond Fund* | 1,934,406 | 1,214,772 | 0 | 0 | 0 | 0 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS Tennessee Municipal Bond Fund* | 1,934,406 | 1,214,772 | 0 | 0 | 0 | 0 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS Virginia Municipal Bond Fund* | 1,934,406 | 1,214,772 | 0 | 0 | 0 | 0 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS West Virginia Municipal Bond Fund* | 1,934,406 | 1,214,772 | 0 | 0 | 0 | 0 |
Aggregate fees for non-audit services | ||||||||
2014 | 20134 | |||||||
Fees billed by Deloitte: | ||||||||
To MFS Alabama Municipal Bond Fund, MFS and MFS Related Entities# | 1,944,554 | 1,347,914 | ||||||
To MFS Arkansas Municipal Bond Fund, MFS and MFS Related Entities# | 1,944,575 | 1,347,928 | ||||||
To MFS California Municipal Bond Fund, MFS and MFS Related Entities# | 1,944,585 | 1,347,937 | ||||||
To MFS Georgia Municipal Bond Fund, MFS and MFS Related Entities# | 1,944,556 | 1,347,914 | ||||||
To MFS Maryland Municipal Bond Fund, MFS and MFS Related Entities# | 1,944,560 | 1,347,917 | ||||||
To MFS Massachusetts Municipal Bond Fund, MFS and MFS Related Entities# | 1,944,582 | 1,347,935 | ||||||
To MFS Mississippi Municipal Bond Fund, MFS and MFS Related Entities# | 1,944,560 | 1,347,918 | ||||||
To MFS Municipal Income Fund, MFS and MFS Related Entities# | 1,944,888 | 1,348,155 | ||||||
To MFS New York Municipal Bond Fund, MFS and MFS Related Entities# | 1,944,574 | 1,347,928 | ||||||
To MFS North Carolina Municipal Bond Fund, MFS and MFS Related Entities# | 1,944,602 | 1,347,949 | ||||||
To MFS Pennsylvania Municipal Bond Fund, MFS and MFS Related Entities# | 1,944,565 | 1,347,921 | ||||||
To MFS South Carolina Municipal Bond Fund, MFS and MFS Related Entities# | 1,944,573 | 1,347,926 | ||||||
To MFS Tennessee Municipal Bond Fund, MFS and MFS Related Entities# | 1,944,562 | 1,347,918 | ||||||
To MFS Virginia Municipal Bond Fund, MFS and MFS Related Entities# | 1,944,591 | 1,347,940 | ||||||
To MFS West Virginia Municipal Bond Fund, MFS and MFS Related Entities# | 1,944,565 | 1,347,921 |
* | This amount reflects the fees billed to MFS and MFS Related Entities for non-audit services relating directly to the operations and financial reporting of the Funds (portions of which services also related to the operations and financial reporting of other funds within the MFS Funds complex). |
# | This amount reflects the aggregate fees billed by Deloitte, as the case may be, for non-audit services rendered to the Funds and for non-audit services rendered to MFS and the MFS Related Entities. |
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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,” including fees for services related to review of internal controls and review of Rule 38a-1 compliance program. |
4 | Fees reported in 2013 have been restated in this filing from those reported in the Registrant’s filing for the reporting period ended March 31, 2013. |
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 Funds and all permissible non-audit services rendered to MFS or MFS Related Entities if the services relate directly to the operations and financial reporting of the Registrant. Pre-approval is currently on an engagement-by-engagement basis. In the event pre-approval of such services is necessary between regular meetings of the Audit Committee and it is not practical to wait to seek pre-approval at the next regular meeting of the Audit Committee, pre-approval of such services may be referred to the Chair of the Audit Committee for approval; provided that the Chair may not pre-approve any individual engagement for such services exceeding $50,000 or multiple engagements for such services in the aggregate exceeding $100,000 in each period between regular meetings of the Audit Committee. Any engagement pre-approved by the Chair between regular meetings of the Audit Committee shall be presented for ratification by the entire Audit Committee at its next regularly scheduled meeting.
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Item 4(e)(2):
None, or 0%, of the services relating to the Audit-Related Fees, Tax Fees and All Other Fees paid by the Fund and MFS and MFS Related Entities relating directly to the operations and financial reporting of the Registrant disclosed above were approved by the audit committee pursuant to paragraphs (c)(7)(i)(C) of Rule 2-01 of Regulation S-X (which permits audit committee approval after the start of the engagement with respect to services other than audit, review or attest services, if certain conditions are satisfied).
Item 4(f): Not applicable.
Item 4(h): The Registrant’s Audit Committee has considered whether the provision by a Registrant’s independent registered public accounting firm of non-audit services to MFS and MFS Related Entities that were not pre-approved by the Committee (because such services did not relate directly to the operations and financial reporting of the Registrant) was compatible with maintaining the independence of the independent registered public accounting firm as the Registrant’s principal auditors.
ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable to the Registrant.
ITEM 6. | INVESTMENTS |
A schedule of investments of the Registrant is included as part of the report to shareholders of such series under Item 1 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.
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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 second fiscal quarter of 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. | EXHIBITS. |
(a) | File the exhibits listed below as part of this form. Letter or number the exhibits in the sequence indicated. |
(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: Code of Ethics attached hereto. |
(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. |
(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. |
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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.
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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 MUNICIPAL SERIES TRUST
By (Signature and Title)* | JOHN M. CORCORAN | |
John M. Corcoran, President |
Date: May 13, 2014
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)* | JOHN M. CORCORAN | |
John M. Corcoran, President (Principal Executive Officer) |
Date: May 13, 2014
By (Signature and Title)* | DAVID L. DILORENZO | |
David L. DiLorenzo, Treasurer (Principal Financial Officer and Accounting Officer) |
Date: May 13, 2014
* | Print name and title of each signing officer under his or her signature. |