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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 811-4096
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)
Kristin V. Collins
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: September 30, 2015
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ITEM 1. | REPORTS TO STOCKHOLDERS. |
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SEMIANNUAL REPORT
September 30, 2015
MFS® MUNICIPAL SERIES TRUST
For the states of:
Alabama, Arkansas, California, Georgia, Maryland, and Massachusetts
MSTA-SEM
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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 • MAY LOSE VALUE • NO BANK GUARANTEE
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Dear Shareholders:
Despite weak global growth, the U.S. economy continues to expand modestly, buoyed by firming labor and housing markets and resilient consumer spending. However, the U.S. Federal Reserve continues to take a cautious approach to raising interest rates.
In Asia, China’s slowing economic growth has raised concerns and fed global market volatility. Commodity exporters have been hurt by weaker Chinese demand. Global oil markets remain oversupplied, further depressing crude oil and gasoline prices. Japan continues to struggle in its attempt to stimulate its economy through monetary and fiscal policy initiatives.
While the eurozone economy is expanding, growth has been mild and inconsistent, while deflation remains a risk. Hopes for a more robust recovery rest on the European Central Bank’s quantitative easing program.
The world’s financial markets have become increasingly complex in recent years. Now, more than ever, it is important to understand companies on a global basis. At MFS®, we believe our integrated research platform, collaborative culture, active risk management process and long-term focus give us a research advantage.
As investors, we aim to add long-term value. We believe this approach will serve you well as you work with your financial advisor to reach your investment objectives.
Respectfully,
Robert J. Manning
Chairman
MFS Investment Management
November 13, 2015
The opinions expressed in this letter are subject to change and may not be relied upon for investment advice. No forecasts can be guaranteed.
1
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MFS Alabama Municipal Bond Fund
Portfolio structure (i)
Top five industries (i) | ||||
Healthcare Revenue – Hospitals | 21.9% | |||
State & Local Agencies | 13.8% | |||
General Obligations – General Purpose | 11.9% | |||
General Obligations – Schools | 11.2% | |||
Universities – Colleges | 10.5% | |||
Composition including fixed income credit quality (a)(i) | ||||
AAA | 4.5% | |||
AA | 35.3% | |||
A | 40.7% | |||
BBB | 9.1% | |||
BB | 2.5% | |||
CC | 0.3% | |||
Not Rated | 6.1% | |||
Cash & Cash Equivalents | 1.5% |
Portfolio facts (i) | ||||
Average Duration (d) | 5.6 | |||
Average Effective Maturity (m) | 15.5 yrs. | |||
Jurisdiction (i) | ||||
Alabama | 81.6% | |||
Guam | 2.3% | |||
California | 2.1% | |||
New York | 1.9% | |||
U.S. Virgin Islands | 1.6% | |||
Massachusetts | 1.2% | |||
Florida | 1.0% | |||
New Hampshire | 0.8% | |||
Puerto Rico | 0.8% | |||
Colorado | 0.7% | |||
Texas | 0.7% | |||
Wisconsin | 0.7% | |||
Tennessee | 0.6% | |||
Virginia | 0.6% | |||
Illinois | 0.6% | |||
Kentucky | 0.5% | |||
Indiana | 0.3% | |||
Michigan | 0.3% | |||
South Dakota | 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 value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining 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 & Cash Equivalents can include cash, investments in money market funds, short term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Percentages are based on net assets as of 9/30/15.
The portfolio is actively managed and current holdings may be different.
2
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Portfolio Composition – continued
MFS Arkansas Municipal Bond Fund
Portfolio structure (i)
Top five industries (i) | ||||
Universities – Colleges | 21.5% | |||
Water & Sewer Utility Revenue | 16.6% | |||
Sales & Excise Tax Revenue | 11.6% | |||
Healthcare Revenue – Hospitals | 11.0% | |||
Utilities – Municipal Owned | 9.3% | |||
Composition including fixed income credit quality (a)(i) | ||||
AAA | 3.9% | |||
AA | 50.1% | |||
A | 32.0% | |||
BBB | 9.1% | |||
BB | 0.7% | |||
B | 0.4% | |||
CC | 1.2% | |||
Not Rated | 2.8% | |||
Cash & Cash Equivalents | (0.2)% |
Portfolio facts (i) | ||||
Average Duration (d) | 6.3 | |||
Average Effective Maturity (m) | 14.9 yrs. | |||
Jurisdiction (i) | ||||
Arkansas | 79.0% | |||
Guam | 5.0% | |||
New York | 3.2% | |||
Puerto Rico | 1.8% | |||
California | 1.8% | |||
Massachusetts | 1.5% | |||
Kentucky | 1.3% | |||
U.S. Virgin Islands | 1.3% | |||
Indiana | 0.8% | |||
Pennsylvania | 0.6% | |||
New Hampshire | 0.6% | |||
Texas | 0.6% | |||
Colorado | 0.5% | |||
New Jersey | 0.4% | |||
Wisconsin | 0.4% | |||
Michigan | 0.4% | |||
Illinois | 0.4% | |||
Tennessee | 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 value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining 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 & Cash Equivalents may be negative due to timing of cash receipts.
Where the fund holds convertible bonds, these are treated as part of the equity portion of the portfolio.
Cash & Cash Equivalents can include cash, investments in money market funds, short term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Percentages are based on net assets as of 9/30/15.
The portfolio is actively managed and current holdings may be different.
3
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Portfolio Composition – continued
MFS California Municipal Bond Fund
Portfolio structure (i)(j)
Top five industries (i) | ||||
Tax Assessment | 13.5% | |||
Healthcare Revenue – Hospitals | 12.8% | |||
General Obligations – Schools | 12.1% | |||
Universities – Colleges | 12.1% | |||
Water & Sewer Utility Revenue | 6.9% |
Composition including fixed income credit quality (a)(i) | ||||
AAA | 2.8% | |||
AA | 32.4% | |||
A | 40.7% | |||
BBB | 13.1% | |||
BB | 3.6% | |||
B | 1.7% | |||
CC | 0.1% | |||
Not Rated (j) | 2.9% | |||
Cash & Cash Equivalents | 0.6% | |||
Other | 2.1% | |||
Portfolio facts (i) | ||||
Average Duration (d) | 7.1 | |||
Average Effective Maturity (m) | 17.0 yrs. | |||
Jurisdiction (i) | ||||
California | 94.0% | |||
Guam | 1.3% | |||
Illinois | 1.0% | |||
Puerto Rico | 0.8% | |||
Ohio | 0.7% | |||
Pennsylvania | 0.7% | |||
New York | 0.5% | |||
New Jersey | 0.4% | |||
U.S. Treasury Securities (j) | (2.1)% |
(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 value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(j) | For the purpose of managing the fund’s duration, the fund holds short treasury futures with a bond equivalent exposure of (2.1)%, which reduce the fund’s interest rate exposure but not its credit exposure. |
(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 & Cash Equivalents can include cash, investments in money market funds, short term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Other can include currency derivatives and/or any offsets to derivative positions.
Percentages are based on net assets as of 9/30/15.
The portfolio is actively managed and current holdings may be different.
4
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Portfolio Composition – continued
MFS Georgia Municipal Bond Fund
Portfolio structure (i)
Top five industries (i) | ||||
Universities – Colleges | 19.3% | |||
Healthcare Revenue – Hospitals | 18.0% | |||
Water & Sewer Utility Revenue | 12.1% | |||
General Obligations – General Purpose | 9.8% | |||
General Obligations – Schools | 6.5% | |||
Composition including fixed income credit quality (a)(i) | ||||
AAA | 8.4% | |||
AA | 34.1% | |||
A | 37.5% | |||
BBB | 11.1% | |||
BB | 1.8% | |||
B | 0.6% | |||
CC | 0.5% | |||
Not Rated | 3.8% | |||
Cash & Cash Equivalents | 2.2% |
Portfolio facts (i) | ||||
Average Duration (d) | 6.2 | |||
Average Effective Maturity (m) | 15.4 yrs. | |||
Jurisdiction (i) | ||||
Georgia | 78.2% | |||
Guam | 2.4% | |||
California | 2.1% | |||
Florida | 1.5% | |||
New Jersey | 1.4% | |||
U.S. Virgin Islands | 1.4% | |||
New York | 1.3% | |||
Puerto Rico | 1.3% | |||
Tennessee | 0.9% | |||
Illinois | 0.9% | |||
Wisconsin | 0.8% | |||
Texas | 0.8% | |||
North Carolina | 0.7% | |||
Kentucky | 0.7% | |||
Michigan | 0.6% | |||
Pennsylvania | 0.6% | |||
New Hampshire | 0.6% | |||
Virginia | 0.6% | |||
Colorado | 0.5% | |||
Indiana | 0.3% | |||
Louisiana | 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 value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining 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 & Cash Equivalents can include cash, investments in money market funds, short term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Percentages are based on net assets as of 9/30/15.
The portfolio is actively managed and current holdings may be different.
5
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Portfolio Composition – continued
MFS Maryland Municipal Bond Fund
Portfolio structure (i)(j)
Top five industries (i) | ||||
Healthcare Revenue – Hospitals | 22.6% | |||
General Obligations – General Purpose | 16.0% | |||
Water & Sewer Utility Revenue | 10.6% | |||
Universities – Colleges | 6.8% | |||
Tax Assessment | 4.5% |
Composition including fixed income credit quality (a)(i) |
| |||
AAA | 18.8% | |||
AA | 27.3% | |||
A | 26.1% | |||
BBB | 17.1% | |||
BB | 1.9% | |||
B | 1.0% | |||
CC | 0.2% | |||
Not Rated (j) | 4.7% | |||
Cash & Cash Equivalents | 0.8% | |||
Other | 2.1% | |||
Portfolio facts (i) | ||||
Average Duration (d) | 6.2 | |||
Average Effective Maturity (m) | 14.2 yrs. |
Jurisdiction (i) |
| |||
Maryland | 77.2% | |||
Guam | 2.5% | |||
Kentucky | 2.1% | |||
Puerto Rico | 2.0% | |||
U.S. Virgin Islands | 1.7% | |||
District of Columbia | 1.7% | |||
New Jersey | 1.6% | |||
Tennessee | 1.4% | |||
New York | 1.4% | |||
California | 1.3% | |||
Indiana | 1.1% | |||
Illinois | 0.8% | |||
Florida | 0.8% | |||
Texas | 0.6% | |||
New Hampshire | 0.6% | |||
Pennsylvania | 0.6% | |||
Colorado | 0.6% | |||
Washington | 0.5% | |||
Michigan | 0.5% | |||
Virginia | 0.1% | |||
Mississippi | 0.1% | |||
U.S. Treasury Securities (j) | (2.1)% |
(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 value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(j) | For the purpose of managing the fund’s duration, the fund holds short treasury futures with a bond equivalent exposure of (2.1)%, which reduce the fund’s interest rate exposure but not its credit exposure. |
(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 & Cash Equivalents can include cash, investments in money market funds, short term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Other can include currency derivatives and/or any offsets to derivative positions.
Percentages are based on net assets as of 9/30/15.
The portfolio is actively managed and current holdings may be different.
6
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Portfolio Composition – continued
MFS Massachusetts Municipal Bond Fund
Portfolio structure (i)(j)
Top five industries (i) | ||||
Universities – Colleges | 22.4% | |||
Healthcare Revenue – Hospitals | 13.5% | |||
General Obligations – General Purpose | 9.6% | |||
Miscellaneous Revenue – Other | 9.4% | |||
Sales & Excise Tax Revenue | 6.0% |
Composition including fixed income credit quality (a)(i) | ||||
AAA | 8.6% | |||
AA | 39.8% | |||
A | 26.8% | |||
BBB | 15.5% | |||
BB | 1.7% | |||
B | 0.9% | |||
CC | 0.8% | |||
Not Rated (j) | 3.2% | |||
Cash & Cash Equivalents | 0.5% | |||
Other | 2.2% | |||
Portfolio facts (i) | ||||
Average Duration (d) | 6.4 | |||
Average Effective Maturity (m) | 15.7 yrs. |
Jurisdiction (i) | ||||
Massachusetts | 84.7% | |||
Illinois | 1.7% | |||
New York | 1.7% | |||
Guam | 1.5% | |||
Puerto Rico | 1.5% | |||
California | 1.3% | |||
Kentucky | 1.2% | |||
Florida | 1.0% | |||
Tennessee | 1.0% | |||
U.S. Virgin Islands | 0.9% | |||
New Jersey | 0.6% | |||
Pennsylvania | 0.5% | |||
Colorado | 0.5% | |||
Texas | 0.4% | |||
New Hampshire | 0.3% | |||
Washington | 0.3% | |||
Louisiana | 0.3% | |||
Wisconsin | 0.1% | |||
U.S. Treasury Securities (j) | (2.2)% |
(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 value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(j) | For the purpose of managing the fund’s duration, the fund holds short treasury futures with a bond equivalent exposure of (2.2)%, which reduce the fund’s interest rate exposure but not its credit exposure. |
(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 & Cash Equivalents can include cash, investments in money market funds, short term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Other can include currency derivatives and/or any offsets to derivative positions.
Percentages are based on net assets as of 9/30/15.
The portfolio is actively managed and current holdings may be different.
7
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Fund expenses borne by the shareholders during the period, April 1, 2015 through September 30, 2015
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 April 1, 2015 through September 30, 2015.
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 4/01/15 | Ending Account Value 9/30/15 | Expenses Paid During Period (p) 4/01/15-9/30/15 | ||||||||||||||
A | Actual | 0.93% | $1,000.00 | $1,007.67 | $4.67 | |||||||||||||
Hypothetical (h) | 0.93% | $1,000.00 | $1,020.35 | $4.70 | ||||||||||||||
B | Actual | 1.68% | $1,000.00 | $1,003.88 | $8.42 | |||||||||||||
Hypothetical (h) | 1.68% | $1,000.00 | $1,016.60 | $8.47 |
MFS ARKANSAS MUNICIPAL BOND FUND
Share Class | Annualized Expense Ratio | Beginning Account Value 4/01/15 | Ending Account Value 9/30/15 | Expenses Paid During Period (p) 4/01/15-9/30/15 | ||||||||||||||
A | Actual | 0.75% | $1,000.00 | $1,006.07 | $3.76 | |||||||||||||
Hypothetical (h) | 0.75% | $1,000.00 | $1,021.25 | $3.79 | ||||||||||||||
B | Actual | 1.51% | $1,000.00 | $1,002.24 | $7.56 | |||||||||||||
Hypothetical (h) | 1.51% | $1,000.00 | $1,017.45 | $7.62 |
(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 183/366 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
8
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Expense Tables – continued
MFS CALIFORNIA MUNICIPAL BOND FUND
Share Class | Annualized Expense Ratio | Beginning Account Value 4/01/15 | Ending Account Value 9/30/15 | Expenses Paid During Period (p) 4/01/15-9/30/15 | ||||||||||||||
A | Actual | 0.71% | $1,000.00 | $1,008.58 | $3.57 | |||||||||||||
Hypothetical (h) | 0.71% | $1,000.00 | $1,021.45 | $3.59 | ||||||||||||||
B | Actual | 1.48% | $1,000.00 | $1,004.74 | $7.42 | |||||||||||||
Hypothetical (h) | 1.48% | $1,000.00 | $1,017.60 | $7.47 | ||||||||||||||
C | Actual | 1.61% | $1,000.00 | $1,004.02 | $8.07 | |||||||||||||
Hypothetical (h) | 1.61% | $1,000.00 | $1,016.95 | $8.12 |
MFS GEORGIA MUNICIPAL BOND FUND
Share Class | Annualized Expense Ratio | Beginning Account Value 4/01/15 | Ending Account Value 9/30/15 | Expenses Paid During Period (p) 4/01/15-9/30/15 | ||||||||||||||
A | Actual | 0.95% | $1,000.00 | $1,004.90 | $4.76 | |||||||||||||
Hypothetical (h) | 0.95% | $1,000.00 | $1,020.25 | $4.80 | ||||||||||||||
B | Actual | 1.70% | $1,000.00 | $1,001.12 | $8.50 | |||||||||||||
Hypothetical (h) | 1.70% | $1,000.00 | $1,016.50 | $8.57 |
MFS MARYLAND MUNICIPAL BOND FUND
Share Class | Annualized Expense Ratio | Beginning Account Value 4/01/15 | Ending Account Value 9/30/15 | Expenses Paid During Period (p) 4/01/15-9/30/15 | ||||||||||||||
A | Actual | 0.91% | $1,000.00 | $1,002.77 | $4.56 | |||||||||||||
Hypothetical (h) | 0.91% | $1,000.00 | $1,020.45 | $4.60 | ||||||||||||||
B | Actual | 1.66% | $1,000.00 | $999.92 | $8.30 | |||||||||||||
Hypothetical (h) | 1.66% | $1,000.00 | $1,016.70 | $8.37 |
(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 183/366 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
Notes to Expense Table
For the MFS Maryland Municipal Bond Fund, changes to the fund’s fee arrangements occurred during the six month period. Had these fee changes been in effect throughout the entire six month period, the annualized expense ratios, the actual expenses paid during the period and the hypothetical expenses paid during the period would have been approximately 0.83%, $4.16 and $4.19 for Class A shares and 1.58%, $7.90 and $7.97 for Class B shares, respectively. For further information about the fund’s fee arrangements and changes to those fee arrangements, please see Note 3 in the Notes to Financial Statements.
9
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Expense Tables – continued
MFS MASSACHUSETTS MUNICIPAL BOND FUND
Share Class | Annualized Expense Ratio | Beginning Account Value 4/01/15 | Ending Account Value 9/30/15 | Expenses Paid During Period (p) 4/01/15-9/30/15 | ||||||||||||||
A | Actual | 0.85% | $1,000.00 | $1,006.74 | $4.26 | |||||||||||||
Hypothetical (h) | 0.85% | $1,000.00 | $1,020.75 | $4.29 | ||||||||||||||
B | Actual | 1.62% | $1,000.00 | $1,002.86 | $8.11 | |||||||||||||
Hypothetical (h) | 1.62% | $1,000.00 | $1,016.90 | $8.17 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
Notes to Expense Table
For the MFS Massachusetts Municipal Bond Fund, each class with a Rule 12b-1 service fee is subject to a rebate of a portion of such fee. Such rebates are included in the expense ratios above. For Class A shares, this rebate reduced the expense ratio above by 0.02%. See Note 3 in the Notes to Financial Statements for additional information.
10
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9/30/15 (unaudited)
MFS ALABAMA MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
Municipal Bonds - 97.4% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 2.4% | ||||||||
Birmingham, AL, Airport Authority Rev., AGM, 5.25%, 7/01/30 | $ | 1,000,000 | $ | 1,131,350 | ||||
Dallas and Fort Worth, TX, International Airport Rev., “B”, 5%, 11/01/44 | 70,000 | 77,091 | ||||||
Dallas and Fort Worth, TX, International Airport Rev., “C”, 5%, 11/01/45 | 45,000 | 49,186 | ||||||
$ | 1,257,627 | |||||||
General Obligations - General Purpose - 11.7% | ||||||||
Auburn, AL, “H”, 5.625%, 12/01/33 | $ | 1,000,000 | $ | 1,147,520 | ||||
Commonwealth of Puerto Rico, “A”, NATL, 5.5%, 7/01/20 | 140,000 | 139,139 | ||||||
Enterprise, AL, 5%, 2/01/29 | 250,000 | 265,080 | ||||||
Guam Government, “A”, 6.75%, 11/15/29 | 260,000 | 318,490 | ||||||
Guam Government, “A”, 7%, 11/15/39 | 60,000 | 74,073 | ||||||
Huntsville, AL, School Warrants, “C”, 5%, 11/01/30 | 1,000,000 | 1,166,840 | ||||||
Jasper, AL, Warrants, 5%, 3/01/32 | 500,000 | 559,685 | ||||||
Madison, AL, Refunding Warrants, 5.15%, 2/01/39 | 1,000,000 | 1,104,600 | ||||||
Montgomery County, AL, Unrefunded Balance, Warrants, N, 5%, 3/01/28 | 95,000 | 100,081 | ||||||
Montgomery County, AL, Warrants, 5%, 3/01/28 (Prerefunded 3/01/17) | 405,000 | 430,811 | ||||||
Puerto Rico Public Buildings Authority Rev., “H”, AMBAC, 5.5%, 7/01/17 | 100,000 | 99,333 | ||||||
Puerto Rico Public Buildings Authority Rev., “H”, AMBAC, 5.5%, 7/01/18 | 75,000 | 74,053 | ||||||
State of California, 6%, 11/01/39 | 550,000 | 654,956 | ||||||
$ | 6,134,661 | |||||||
General Obligations - Schools - 11.2% | ||||||||
Huntsville, AL, School Warrants, “C”, 5%, 11/01/29 | $ | 200,000 | $ | 234,638 | ||||
Jefferson County, AL, School Warrants, AGM, 5.5%, 2/15/20 | 1,750,000 | 1,755,460 | ||||||
Lee County, AL, School Warrants, ASSD GTY, 4.75%, 2/01/29 | 880,000 | 940,720 | ||||||
Madison County, AL, Board of Education, ASSD GTY, 5.125%, 9/01/34 | 1,000,000 | 1,092,740 | ||||||
Moorpark, CA, Unified School District (Election of 2008), Capital Appreciation, “B”, AGM, 0%, 8/01/36 | 570,000 | 232,047 | ||||||
Shelby County, AL, Board of Education Capital Outlay School Warrants (Ten Mill County Tax), 5%, 2/01/31 | 500,000 | 551,805 | ||||||
Sumter County, AL, School Warrants, 5.2%, 2/01/39 | 1,000,000 | 1,035,810 | ||||||
$ | 5,843,220 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - 21.6% | ||||||||
Alabama Special Care Facilities Financing Authority (Daughters of Charity), ETM, AMBAC, 5%, 11/01/25 | $ | 1,500,000 | $ | 1,506,105 | ||||
Alabama Special Care Facilities Financing Authority Rev. (Ascension Health), BHAC, 5%, 11/15/39 | 750,000 | 779,715 | ||||||
Alexander City, AL, Special Care Facilities Financing Authority Medical Facilities Rev., “A” (Russell Hospital Corp.), 5.75%, 12/01/36 | 250,000 | 252,835 | ||||||
Birmingham, AL, Special Care Facilities Financing Authority Health Care Rev. (Children’s Hospital), 5%, 6/01/31 | 750,000 | 845,512 | ||||||
Birmingham, AL, Special Care Facilities Financing Authority Health Care Rev. (Children’s Hospital), 6%, 6/01/39 | 750,000 | 880,065 | ||||||
Cullman County, AL, Health Care Authority (Cullman Regional Medical Center), “A”, 7%, 2/01/36 | 300,000 | 324,222 | ||||||
DCH Health Care Authority, AL, Health Care Facilities Rev., 5%, 6/01/33 | 500,000 | 554,125 | ||||||
East Alabama Health Care Authority, Health Care Facilities Rev., 5.25%, 9/01/36 (Put Date 9/01/18) | 1,000,000 | 1,087,630 | ||||||
Escambia County, FL, Health Facilities Authority (Baptist Hospital, Inc.), “A”, 6%, 8/15/36 | 435,000 | 492,494 | ||||||
Health Care Authority for Baptist Health, AL, “D”, 5%, 11/15/21 | 875,000 | 878,964 | ||||||
Huntsville, AL, Health Care Authority Rev., “A”, 5%, 6/01/30 | 1,000,000 | 1,167,660 | ||||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 7%, 8/15/44 (Prerefunded 8/15/19) | 255,000 | 312,138 | ||||||
Louisville & Jefferson County, KY, Metropolitan Government Healthcare Systems Rev. (Norton Healthcare, Inc.), 5.25%, 10/01/36 | 265,000 | 271,747 | ||||||
Mobile, AL, Special Care Facilities Financing Authority Rev. (Infirmary Health System, Inc.), “A”, 5.25%, 2/01/30 | 500,000 | 551,610 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6%, 10/01/27 | 370,000 | 414,019 | ||||||
South Dakota Health & Educational Facilities Authority Rev. (Sanford Obligated Group), “B”, 5%, 11/01/34 | 85,000 | 93,596 | ||||||
University of Alabama at Birmingham, AL, Hospital Rev., “A”, 5.25%, 9/01/25 | 500,000 | 549,235 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (Wheaton Franciscan Healthcare), 5.25%, 8/15/31 | 340,000 | 347,973 | ||||||
$ | 11,309,645 |
11
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Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Long Term Care - 1.5% | ||||||||
Pell City, AL, Special Care Facilities, Financing Authority Rev. (Noland Health Services, Inc.), 5%, 12/01/39 | $ | 750,000 | $ | 805,447 | ||||
Industrial Revenue - Paper - 1.2% | ||||||||
Selma, AL, Industrial Development Board Rev., Gulf Opportunity Zone (International Paper Co.), “A”, 6.25%, 11/01/33 | $ | 250,000 | $ | 289,355 | ||||
Selma, AL, Industrial Development Board Rev., Gulf Opportunity Zone (International Paper Co.), “A”, 5.375%, 12/01/35 | 300,000 | 331,830 | ||||||
$ | 621,185 | |||||||
Miscellaneous Revenue - Other - 1.9% | ||||||||
Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/40 | $ | 65,000 | $ | 68,165 | ||||
Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/44 | 95,000 | 99,243 | ||||||
New York Liberty Development Corp., Liberty Rev. (3 World Trade Center Project), “1”, 5%, 11/15/44 | 260,000 | 262,605 | ||||||
New York Liberty Development Corp., Liberty Rev. (7 World Trade Center Project), 5%, 9/15/40 | 495,000 | 567,107 | ||||||
$ | 997,120 | |||||||
Port Revenue - 1.1% | ||||||||
Alabama Port Authority Docks Facility, 6%, 10/01/40 | $ | 500,000 | $ | 579,010 | ||||
Sales & Excise Tax Revenue - 1.9% | ||||||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6%, 1/15/41 | $ | 325,000 | $ | 366,187 | ||||
Massachusetts Bay Transportation Authority, Sales Tax Rev., “A”, 5%, 7/01/31 | 515,000 | 639,115 | ||||||
$ | 1,005,302 | |||||||
Single Family Housing - State - 0.7% | ||||||||
Alabama Housing Finance Authority, Single Family Mortgage Rev., “B”, GNMA, 5.375%, 10/01/33 | $ | 345,000 | $ | 358,693 | ||||
State & Local Agencies - 13.7% | ||||||||
Alabama Incentives Financing Authority Special Obligation, “A”, 5%, 9/01/29 | $ | 1,000,000 | $ | 1,117,200 | ||||
Alabama Public Health Care Authority Lease Rev. (Department Of Public Health Facilities), 5%, 9/01/30 | 280,000 | 319,234 | ||||||
Alabama Public School & College Authority Rev., “A”, 5%, 2/01/26 | 500,000 | 602,030 | ||||||
Alabama Public School & College Authority Rev., “A”, 5%, 5/01/29 (Prerefunded 5/01/19) | 1,000,000 | 1,135,390 | ||||||
Alabama Public School & College Authority Rev., “B”, 5%, 6/01/25 | 800,000 | 950,496 |
Issuer | Shares/Par | Value ($) | ||||||
State & Local Agencies - continued | ||||||||
Alabama Public School & College Authority Rev., “B”, 5%, 1/01/27 | $ | 500,000 | $ | 601,185 | ||||
Anniston, AL, Public Building Authority Rev. (Judicial Center Project), AGM, 5%, 3/01/32 | 500,000 | 548,355 | ||||||
Bessemer, AL, Public Educational Building Authority Rev. (DHR Building Project), “A”, ASSD GTY, 5%, 7/01/30 | 385,000 | 430,796 | ||||||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., Enhanced, “A”, 5%, 6/01/30 | 35,000 | 40,020 | ||||||
Los Angeles, CA, Municipal Improvement Corp. Lease Rev. (Real Property), “E”, 6%, 9/01/39 | 145,000 | 167,488 | ||||||
Montgomery County, AL, Public Building Authority Rev., Warrants (Facilities Project), 5%, 3/01/27 | 1,050,000 | 1,235,398 | ||||||
$ | 7,147,592 | |||||||
Tax - Other - 1.9% | ||||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/24 | $ | 95,000 | $ | 105,379 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/29 | 30,000 | 33,237 | ||||||
Virgin Islands Public Finance Authority Rev., “A-1”, 5%, 10/01/29 | 65,000 | 69,489 | ||||||
Virgin Islands Public Finance Authority Rev., “B”, 5%, 10/01/25 | 65,000 | 71,335 | ||||||
Virgin Islands Public Finance Authority Rev., Matching Fund Loan Note, “A”, 5%, 10/01/29 | 400,000 | 434,004 | ||||||
Virgin Islands Public Finance Authority Rev., Matching Fund Loan Note, “A”, 6%, 10/01/39 | 235,000 | 256,033 | ||||||
$ | 969,477 | |||||||
Toll Roads - 0.6% | ||||||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 6%, 1/01/37 | $ | 110,000 | $ | 124,231 | ||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 5.5%, 1/01/42 | 180,000 | 195,363 | ||||||
$ | 319,594 | |||||||
Universities - Colleges - 10.3% | ||||||||
Alabama State University Board of Education Rev. (Chattahoochee Valley Community College), ASSD GTY, 5%, 6/01/34 | $ | 1,300,000 | $ | 1,432,847 | ||||
Alabama State University Rev., General Tuition & Fee, ASSD GTY, 5.75%, 9/01/39 | 1,000,000 | 1,093,590 | ||||||
Jacksonville State University, Tuition & Fee Rev., ASSD GTY, 5.125%, 12/01/38 | 1,000,000 | 1,095,180 | ||||||
Troy University, Facilities Rev., “A”, BAM, 5%, 11/01/28 | 500,000 | 573,920 | ||||||
University of South Alabama, University Rev., AMBAC, 5%, 12/01/29 | 1,000,000 | 1,043,850 | ||||||
University of South Alabama, University Rev., BHAC, 5%, 8/01/38 | 150,000 | 163,142 | ||||||
$ | 5,402,529 |
12
Table of Contents
Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Universities - Secondary Schools - 0.5% | ||||||||
La Vernia, TX, Higher Education Finance Corp. Rev. (Lifeschool of Dallas), “A”, 7.5%, 8/15/41 (Prerefunded 8/15/19) | $ | 190,000 | $ | 234,699 | ||||
Utilities - Investor Owned - 0.1% | ||||||||
Michigan Strategic Fund Ltd. Obligation Rev. (Detroit Edison Co.), 5.5%, 8/01/29 (Put Date 8/01/16) | $ | 70,000 | $ | 72,469 | ||||
Utilities - Municipal Owned - 5.6% | ||||||||
Chatom, AL, Industrial Development Board Gulf Opportunity Zone (PowerSouth Energy), “A”, ASSD GTY, 5%, 8/01/37 | $ | 1,000,000 | $ | 1,118,160 | ||||
Foley, AL, Utilities Board Utilities Rev., AGM, 5%, 11/01/25 (Prerefunded 11/01/15) | 1,000,000 | 1,004,200 | ||||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/24 | 265,000 | 313,855 | ||||||
Guam Power Authority Rev., “A”, 5.5%, 10/01/40 | 230,000 | 252,492 | ||||||
Long Island, NY, Power Authority, Electric Systems Rev., “A”, 6%, 5/01/33 | 130,000 | 149,547 | ||||||
Puerto Rico Electric Power Authority Rev., “DDD”, AGM, 3.625%, 7/01/23 | 10,000 | 9,302 | ||||||
Puerto Rico Electric Power Authority Rev., “DDD”, AGM, 3.65%, 7/01/24 | 50,000 | 45,292 | ||||||
Puerto Rico Electric Power Authority Rev., “SS”, ASSD GTY, 4.375%, 7/01/30 | 5,000 | 4,432 | ||||||
Puerto Rico Electric Power Authority Rev., “UU”, ASSD GTY, 4.25%, 7/01/27 | 30,000 | 27,515 | ||||||
$ | 2,924,795 | |||||||
Utilities - Other - 0.6% | ||||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/19 | $ | 295,000 | $ | 331,084 | ||||
Water & Sewer Utility Revenue - 8.9% | ||||||||
Bessemer, AL, Governmental Utilities Services Corp. Water Supply Rev., ASSD GTY, 5%, 6/01/39 | $ | 1,000,000 | $ | 1,054,450 | ||||
Birmingham, AL, Waterworks Board Water Rev., “A”, 5.125%, 1/01/34 (Prerefunded 1/01/19) | 280,000 | 317,257 |
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - continued | ||||||||
Birmingham, AL, Waterworks Board Water Rev., “A”, ASSD GTY, 5.125%, 1/01/34 | $ | 470,000 | $ | 518,048 | ||||
Birmingham, AL, Waterworks Board Water Rev., “A”, 5%, 1/01/30 | 500,000 | 571,995 | ||||||
Cullman, AL, Utilities Board Water Rev., “A”, AGM, 5%, 9/01/35 | 1,000,000 | 1,125,460 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), “A”, 5%, 7/01/29 | 45,000 | 49,995 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), “A”, 5%, 7/01/35 | 45,000 | 49,162 | ||||||
Jefferson County, AL, Sewer Rev. Warrants, Subordinate Lien, “D”, 5%, 10/01/21 | 300,000 | 332,823 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “C-7”, NATL, 5%, 7/01/32 | 15,000 | 16,375 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “D-1”, AGM, 5%, 7/01/35 | 10,000 | 10,948 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “D-1”, AGM, 5%, 7/01/37 | 20,000 | 21,787 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “D-6”, NATL, 5%, 7/01/36 | 20,000 | 21,571 | ||||||
Scottsboro, AL, Waterworks Sewer & Gas Board Rev., 5%, 8/01/32 | 500,000 | 557,445 | ||||||
$ | 4,647,316 | |||||||
Total Municipal Bonds (Identified Cost, $47,325,050) | $ | 50,961,465 | ||||||
Money Market Funds - 1.6% | ||||||||
MFS Institutional Money Market Portfolio, 0.12%, at Cost and Net Asset Value (v) | 863,951 | $ | 863,951 | |||||
Total Investments (Identified Cost, $48,189,001) | $ | 51,825,416 | ||||||
Other Assets, Less Liabilities - 1.0% | 514,668 | |||||||
Net Assets - 100.0% | $ | 52,340,084 |
See Portfolio Footnotes and Notes to Financial Statements
13
Table of Contents
PORTFOLIO OF INVESTMENTS
9/30/15 (unaudited)
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 ($) | ||||||
Airport Revenue - 0.5% | ||||||||
Dallas and Fort Worth, TX, International Airport Rev., “B”, 5%, 11/01/44 | $ | 235,000 | $ | 258,806 | ||||
Dallas and Fort Worth, TX, International Airport Rev., “C”, 5%, 11/01/45 | 160,000 | 174,883 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, 5%, 12/01/44 | 95,000 | 103,522 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, BAM, 5%, 12/01/39 | 105,000 | 116,129 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/39 | 80,000 | 84,699 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/44 | 125,000 | 131,565 | ||||||
$ | 869,604 | |||||||
General Obligations - General Purpose - 4.7% | ||||||||
Arkansas College Savings, Capital Appreciation, “A”, ETM, 0%, 6/01/17 | $ | 1,840,000 | $ | 1,820,827 | ||||
Arkansas Four-Lane Highway Construction & Improvement, 4%, 6/15/20 | 2,000,000 | 2,245,280 | ||||||
Commonwealth of Puerto Rico, “A”, NATL, 5.5%, 7/01/20 | 460,000 | 457,171 | ||||||
Guam Government, “A”, 5.25%, 11/15/37 | 255,000 | 278,748 | ||||||
Guam Government, “A”, 6.75%, 11/15/29 | 515,000 | 630,854 | ||||||
Guam Government, “A”, 7%, 11/15/39 | 65,000 | 80,246 | ||||||
Puerto Rico Public Buildings Authority Rev., “H”, AMBAC, 5.5%, 7/01/17 | 555,000 | 551,298 | ||||||
Puerto Rico Public Buildings Authority Rev., “H”, AMBAC, 5.5%, 7/01/18 | 400,000 | 394,952 | ||||||
State of California, 6%, 11/01/39 | 1,160,000 | 1,381,363 | ||||||
$ | 7,840,739 | |||||||
General Obligations - Schools - 7.6% | ||||||||
Arkansas Higher Education, 4%, 6/01/29 | $ | 2,000,000 | $ | 2,209,480 | ||||
Bentonville, AR, School District No. 6, “A”, 5%, 6/01/24 | 3,185,000 | 3,400,179 | ||||||
Crittenden County, AR, Community College District, 4.6%, 2/01/35 | 285,000 | 285,382 | ||||||
Crittenden County, AR, Community College District, 4.7%, 2/01/40 | 625,000 | 625,875 | ||||||
Pulaski County, AR, North Little Rock School District, “B”, 5%, 2/01/22 | 1,635,000 | 1,879,236 | ||||||
Pulaski County, AR, Special School District Construction, 5%, 2/01/35 | 2,000,000 | 2,004,060 | ||||||
Springdale, AR, School District No. 050, “A”, 4.625%, 6/01/37 | 2,000,000 | 2,093,560 | ||||||
$ | 12,497,772 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - 10.8% | ||||||||
Arkansas Development Finance Authority Health Care Rev. (Baptist Health), “A”, 5%, 12/01/29 | $ | 1,000,000 | $ | 1,155,160 | ||||
Arkansas Development Finance Authority Hospital Rev. (Washington Regional Medical Center), “A”, 5%, 2/01/33 | 1,645,000 | 1,817,922 | ||||||
Conway, AR, Hospital Rev. (Conway Regional Medical Center), 4.45%, 8/01/32 | 540,000 | 557,253 | ||||||
Escambia County, FL, Health Facilities Authority (Baptist Hospital, Inc.), “A”, 6%, 8/15/36 | 420,000 | 475,511 | ||||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 7%, 8/15/44 (Prerefunded 8/15/19) | 510,000 | 624,276 | ||||||
Independence County, AR, Public Health Education & Housing Facilities Board Rev. (White River Health Systems), 5.75%, 6/01/28 | 1,000,000 | 1,104,520 | ||||||
Indiana Finance Authority Rev. (Sisters of St. Francis Health Services), 5.375%, 11/01/32 | 1,085,000 | 1,194,780 | ||||||
Jefferson County, AR, Hospital Rev., Refunding (Regional Medical Center), AGM, 5%, 6/01/26 | 2,150,000 | 2,388,973 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 5.75%, 6/01/25 | 510,000 | 580,696 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6.375%, 6/01/40 | 545,000 | 616,542 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6.5%, 3/01/45 | 395,000 | 447,255 | ||||||
Louisville & Jefferson County, KY, Metropolitan Government Healthcare Systems Rev. (Norton Healthcare, Inc.), 5.25%, 10/01/36 | 470,000 | 481,966 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6%, 10/01/27 | 355,000 | 397,234 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6.125%, 10/01/39 | 490,000 | 541,313 | ||||||
Pulaski County, AR, Hospital Rev. (Arkansas Children’s Hospital Foundation), AGM, 4%, 3/01/20 | 1,000,000 | 1,083,450 | ||||||
Pulaski County, AR, Public Facilities Board Health Facilities Rev. (Carti Project), 5.5%, 7/01/43 | 750,000 | 822,210 | ||||||
Pulaski, AR, Hospital Rev. (Arkansas Children’s Hospital), ASSD GTY, 5.5%, 3/01/34 | 750,000 | 838,538 | ||||||
Pulaski, AR, Hospital Rev. (Arkansas Children’s Hospital), ASSD GTY, 5.5%, 3/01/39 | 1,925,000 | 2,147,511 |
14
Table of Contents
Portfolio of Investments (unaudited) – 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 | $ | 690,829 | ||||
$ | 17,965,939 | |||||||
Industrial Revenue - Paper - 0.1% | ||||||||
Valparaiso, IN, Exempt Facilities Rev. (Pratt Paper LLC Project), 7%, 1/01/44 | $ | 100,000 | $ | 121,845 | ||||
Miscellaneous Revenue - Entertainment & Tourism - 1.8% | ||||||||
Fayetteville, AR, Hotel, Motel and Restaurant Rev., BAM, 5%, 11/01/34 | $ | 2,525,000 | $ | 2,926,147 | ||||
Miscellaneous Revenue - Other - 1.6% | ||||||||
New York Liberty Development Corp., Liberty Rev. (3 World Trade Center Project), “1”, 5%, 11/15/44 | $ | 835,000 | $ | 843,367 | ||||
New York Liberty Development Corp., Liberty Rev. (7 World Trade Center Project), 5%, 9/15/40 | 1,615,000 | 1,850,257 | ||||||
$ | 2,693,624 | |||||||
Sales & Excise Tax Revenue - 11.4% | ||||||||
Bentonville, AR, Sales & Use Tax, AMBAC, 4.375%, 11/01/25 | $ | 705,000 | $ | 751,340 | ||||
Bentonville, AR, Sales & Use Tax, 4%, 11/01/26 | 1,310,000 | 1,394,089 | ||||||
Cabot, AR, Sales & Use Tax , 5%, 6/01/26 | 700,000 | 818,370 | ||||||
Cabot, AR, Sales & Use Tax, 5%, 6/01/27 | 1,300,000 | 1,506,739 | ||||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6%, 1/15/41 | 760,000 | 856,315 | ||||||
Conway, AR, Sales & Use Tax Rev., Capital Improvement, 4.5%, 5/01/35 | 1,150,000 | 1,249,153 | ||||||
Conway, AR, Sales & Use Tax Rev., Capital Improvement, 4.5%, 5/01/30 | 850,000 | 932,289 | ||||||
Crawford County, AR, Sales & Use Tax, AGM, 4%, 9/01/20 | 250,000 | 279,273 | ||||||
Crawford County, AR, Sales & Use Tax, AGM, 4%, 9/01/21 | 560,000 | 629,317 | ||||||
Fort Smith, AR, Sales & Use Tax, 5%, 5/01/23 | 380,000 | 455,339 | ||||||
Fort Smith, AR, Sales & Use Tax, 5%, 5/01/24 | 2,040,000 | 2,382,965 | ||||||
Guam Government Business Privilege Tax Rev., “C”, 5%, 11/15/17 | 210,000 | 227,060 | ||||||
Guam Government Business Privilege Tax Rev., “D”, 5%, 11/15/31 | 1,180,000 | 1,313,788 | ||||||
Massachusetts Bay Transportation Authority, Sales Tax Rev., “A-1”, 5.25%, 7/01/29 | 1,000,000 | 1,280,650 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., 5.25%, 8/01/57 | 415,000 | 257,304 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, 0%, 8/01/56 | 4,705,000 | 244,895 | ||||||
Rogers, AR, Sales & Use Tax Rev., 5%, 11/01/23 | 1,000,000 | 1,159,880 | ||||||
Springdale, AR, Sales & Use Tax Rev., 5%, 11/01/28 | 1,000,000 | 1,142,440 |
Issuer | Shares/Par | Value ($) | ||||||
Sales & Excise Tax Revenue - continued | ||||||||
Stuttgart, AR, Sales & Use Tax Rev., AGM, 5%, 6/01/32 | $ | 1,840,000 | $ | 2,052,667 | ||||
$ | 18,933,873 | |||||||
Single Family Housing - State - 0.4% | ||||||||
Arkansas Development Finance Authority Rev., Mortgage Backed Securities Program, “C”, GNMA, 5.625%, 1/01/35 | $ | 10,000 | $ | 10,172 | ||||
Arkansas Development Finance Authority, Mortgage Rev., “B”, GNMA, 4.85%, 7/01/31 | 545,000 | 545,420 | ||||||
Arkansas Development Finance Authority, Single Family Mortgage Rev., “B”, GNMA, 5.7%, 7/01/28 | 70,000 | 70,039 | ||||||
$ | 625,631 | |||||||
State & Local Agencies - 2.7% | ||||||||
Arkansas Development Finance Authority Rev. (Donaghey Plaza Project), 5%, 6/01/34 | $ | 2,605,000 | $ | 2,907,701 | ||||
Arkansas Development Finance Authority Rev., Correctional Facilities, “A”, 5.125%, 5/15/34 | 500,000 | 552,020 | ||||||
Delaware Valley, PA, Regional Finance Authority, “C”, FRN, 0.967%, 6/01/37 | 1,315,000 | 1,069,411 | ||||||
$ | 4,529,132 | |||||||
Tax - Other - 5.2% | ||||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/24 | $ | 490,000 | $ | 543,533 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/29 | 65,000 | 72,014 | ||||||
Little Rock, AR, Hotel & Restaurant Gross Receipts Tax Rev., 5%, 7/01/34 | 3,000,000 | 3,392,130 | ||||||
Little Rock, AR, Library Construction & Improvement Rev., 4%, 3/01/23 | 810,000 | 845,535 | ||||||
Little Rock, AR, Library Construction & Improvement Rev., 4%, 3/01/24 | 1,685,000 | 1,751,878 | ||||||
Virgin Islands Public Finance Authority Rev., “A-1”, 5%, 10/01/29 | 135,000 | 144,323 | ||||||
Virgin Islands Public Finance Authority Rev., “A-1”, 5%, 10/01/39 | 150,000 | 158,106 | ||||||
Virgin Islands Public Finance Authority Rev., “B”, 5%, 10/01/25 | 135,000 | 148,157 | ||||||
Virgin Islands Public Finance Authority Rev., Matching Fund Loan Note, “A”, 5%, 10/01/29 | 940,000 | 1,019,909 | ||||||
Virgin Islands Public Finance Authority Rev., Matching Fund Loan Note, “A”, 6%, 10/01/39 | 505,000 | 550,198 | ||||||
$ | 8,625,783 | |||||||
Tobacco - 2.9% | ||||||||
Arkansas Development Finance Authority, Tobacco Settlement Rev. (Cancer Research Center Project), Capital Appreciation, AMBAC, 0%, 7/01/26 | $ | 2,440,000 | $ | 1,748,211 | ||||
Arkansas Development Finance Authority, Tobacco Settlement Rev. (Cancer Research Center Project), Capital Appreciation, AMBAC, 0%, 7/01/27 | 2,470,000 | 1,683,231 |
15
Table of Contents
Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Tobacco - continued | ||||||||
Arkansas Development Finance Authority, Tobacco Settlement Rev. (Cancer Research Center Project), Capital Appreciation, AMBAC, 0%, 7/01/28 | $ | 500,000 | $ | 325,885 | ||||
Children’s Trust Fund, Tobacco Settlement Rev., Puerto Rico, 5.5%, 5/15/39 | 290,000 | 290,003 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.5%, 6/01/23 | 480,000 | 482,395 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 5%, 6/01/41 | 305,000 | 239,727 | ||||||
$ | 4,769,452 | |||||||
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 | $ | 285,557 | ||||
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 | 218,277 | ||||||
$ | 503,834 | |||||||
Transportation - Special Tax - 0.3% | ||||||||
Metropolitan Transportation Authority Rev., NY, “A”, 5%, 11/15/37 | $ | 490,000 | $ | 522,551 | ||||
Universities - Colleges - 21.3% | ||||||||
Arkansas State University, Housing System Rev. (Jonesboro Campus), 4.5%, 3/01/31 | $ | 2,500,000 | $ | 2,701,075 | ||||
Arkansas State University, Housing System Rev. (Jonesboro Campus), “C”, AMBAC, 5%, 3/01/32 | 2,595,000 | 2,760,068 | ||||||
Arkansas State University, Student Fee (Jonesboro Campus), “C”, AGM, 4.5%, 3/01/27 | 545,000 | 607,277 | ||||||
Massachusetts Development Finance Agency Higher Education Rev. (Emerson College), “A”, 5%, 1/01/23 | 1,070,000 | 1,130,466 | ||||||
New York Dormitory Authority Rev., 5.25%, 7/01/48 | 1,605,000 | 1,795,321 | ||||||
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 | 72,509 | ||||||
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 | 118,664 | ||||||
Puerto Rico Industrial, Tourist, Medical, & Environmental Central Facilities (University of Sacred Heart), 4.375%, 10/01/31 | 60,000 | 43,993 | ||||||
Puerto Rico Industrial, Tourist, Medical, & Environmental Central Facilities (University of Sacred Heart), 5%, 10/01/42 | 30,000 | 21,936 |
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
Pulaski, AR, Student Tuition & Fee Rev. (Technical College), AGM, 4%, 4/01/24 | $ | 1,000,000 | $ | 1,077,350 | ||||
Pulaski, AR, Student Tuition & Fee Rev. (Technical College), BAM, 5%, 9/01/30 | 1,000,000 | 1,135,540 | ||||||
Pulaski, AR, Student Tuition & Fee Rev. (Technical College), 5%, 4/01/41 | 1,000,000 | 1,121,120 | ||||||
University Arkansas Auxiliary Enterprises Rev., 5%, 12/01/29 | 605,000 | 693,735 | ||||||
University Arkansas Auxiliary Enterprises Rev., “A”, 5%, 5/01/29 | 200,000 | 230,338 | ||||||
University of Arkansas Facilities Rev. (UAMS Campus), 5%, 11/01/25 | 2,000,000 | 2,409,960 | ||||||
University of Arkansas Facilities Rev. (UAMS Campus), 5%, 11/01/22 | 505,000 | 608,868 | ||||||
University of Arkansas Facilities Rev. (UAMS Campus), 5%, 11/01/23 | 520,000 | 632,814 | ||||||
University of Arkansas Facilities Rev. (UAMS Campus), 5%, 10/01/25 | 780,000 | 938,824 | ||||||
University of Arkansas Rev. (Fayetteville Campus), “A”, 5%, 11/01/21 | 1,310,000 | 1,559,594 | ||||||
University of Arkansas Rev. (Fayetteville Campus), “A”, 5%, 11/01/26 | 1,000,000 | 1,157,000 | ||||||
University of Arkansas Rev. (Fort Smith Campus), 5%, 12/01/28 | 860,000 | 956,079 | ||||||
University of Arkansas Rev. (Student Fee-Phillps), 5.1%, 12/01/34 | 750,000 | 791,333 | ||||||
University of Arkansas Rev. (Student Fee-Fort Smith Campus), 4%, 12/01/23 | 250,000 | 276,253 | ||||||
University of Arkansas Rev. (Student Fee-Fort Smith Campus), 4%, 12/01/24 | 250,000 | 274,420 | ||||||
University of Arkansas Rev. (Student Fee-Fort Smith Campus), 4%, 12/01/25 | 500,000 | 544,060 | ||||||
University of Arkansas Rev. (Student Fee-Fort Smith Campus), 4%, 12/01/26 | 305,000 | 331,831 | ||||||
University of Arkansas Rev., “A”, 5%, 11/01/33 | 1,000,000 | 1,097,570 | ||||||
University of Arkansas, Administration Building Rev., “A”, 5%, 11/01/38 | 1,000,000 | 1,097,570 | ||||||
University of Arkansas, University Facilities Rev. (Pine Bluff Campus), “A”, AMBAC, 5%, 12/01/30 | 1,000,000 | 1,008,140 | ||||||
University of Arkansas, University Rev. (Fayetteville Campus), “A”, 5%, 11/01/32 | 1,000,000 | 1,152,010 | ||||||
University of Arkansas, University Rev. (Monticello Campus), 4%, 12/01/35 | 600,000 | 614,004 | ||||||
University of Arkansas, University Rev. (UAMS Campus), 4.5%, 7/01/17 | 725,000 | 774,090 | ||||||
University of Arkansas, University Rev. (UAMS Campus), 4.5%, 7/01/19 | 320,000 | 358,381 | ||||||
University of Arkansas, University Rev., Var Fac-Fayetteville Campus, AMBAC, 5%, 11/01/36 | 2,500,000 | 2,626,075 | ||||||
University of Central Arkansas Rev., “C”, ASSD GTY, 4.25%, 9/01/40 | 1,950,000 | 2,033,987 | ||||||
University of Puerto Rico Rev., “Q”, 5%, 6/01/36 | 1,145,000 | 498,384 | ||||||
$ | 35,250,639 |
16
Table of Contents
Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Universities - Dormitories - 0.3% | ||||||||
Arkansas Technical University, Housing Systems Rev., AMBAC, 5.2%, 12/01/26 | $ | 500,000 | $ | 508,895 | ||||
Utilities - Investor Owned - 1.1% | ||||||||
Independence County, AR, Pollution Control Rev. (Entergy Arkansas, Inc. Project), 2.375%, 1/01/21 | $ | 750,000 | $ | 774,750 | ||||
Independence County, AR, Pollution Control Rev. (Entergy Mississippi, Inc. Project), AMBAC, 4.9%, 7/01/22 | 1,000,000 | 1,016,700 | ||||||
$ | 1,791,450 | |||||||
Utilities - Municipal Owned - 9.2% | ||||||||
Benton, AR, Public Utility Rev., AGM, 5%, 9/01/30 | $ | 1,000,000 | $ | 1,172,350 | ||||
Benton, AR, Public Utility Rev., AMBAC, 5%, 9/01/31 | 1,500,000 | 1,594,485 | ||||||
Benton, AR, Public Utility Rev., AGM, 5%, 9/01/32 | 1,130,000 | 1,263,510 | ||||||
Benton, AR, Public Utility Rev., AGM, 5%, 9/01/35 | 1,000,000 | 1,142,790 | ||||||
Benton, AR, Public Utility Rev., AMBAC, 5%, 9/01/36 | 1,500,000 | 1,594,485 | ||||||
Benton, AR, Public Utility Rev., AGM, 5%, 9/01/36 | 1,165,000 | 1,292,684 | ||||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/30 | 2,805,000 | 3,250,069 | ||||||
Guam Power Authority Rev., “A”, 5.5%, 10/01/30 | 450,000 | 501,237 | ||||||
Guam Power Authority Rev., “A”, 5.5%, 10/01/40 | 790,000 | 867,254 | ||||||
Long Island, NY, Power Authority, Electric Systems Rev., “A”, 6%, 5/01/33 | 245,000 | 281,838 | ||||||
North Little Rock, AR, Electric Rev., “B”, AGM, 5%, 7/01/21 | 1,040,000 | 1,150,157 | ||||||
North Little Rock, AR, Electric Rev., “B”, AGM, 5%, 7/01/22 | 1,090,000 | 1,205,453 | ||||||
$ | 15,316,312 | |||||||
Utilities - Other - 0.3% | ||||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/21 | $ | 300,000 | $ | 342,114 | ||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/22 | 155,000 | 178,314 | ||||||
$ | 520,428 | |||||||
Water & Sewer Utility Revenue - 16.3% | ||||||||
Arkansas Community Public Water Systems Authority Rev., 5%, 10/01/32 | $ | 1,020,000 | $ | 1,141,839 | ||||
Arkansas Development Finance Authority, Capital Improvement Rev., Revolving Fund Loan, “C”, 5%, 6/01/22 | 1,500,000 | 1,786,695 | ||||||
Arkansas Development Finance Authority, Capital Improvement Rev., Revolving Fund Loan, “C”, 5%, 6/01/23 | 795,000 | 935,389 | ||||||
Arkansas Development Finance Authority, Capital Improvement Rev., Revolving Fund Loan, “C”, 5%, 6/01/25 | 1,500,000 | 1,748,640 | ||||||
Central Arkansas Water Rev., 5%, 10/01/22 | 1,215,000 | 1,469,506 |
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - continued | ||||||||
Central Arkansas Water Rev., 5%, 10/01/23 | $ | 1,275,000 | $ | 1,556,571 | ||||
Conway, AR, Water Rev., 4%, 12/01/21 | 565,000 | 625,246 | ||||||
Conway, AR, Water Rev., 4%, 12/01/22 | 400,000 | 442,136 | ||||||
Conway, AR, Water Rev., 4%, 12/01/23 | 500,000 | 546,705 | ||||||
Fort Smith, AR, Water & Sewer Rev., AGM, 4.5%, 10/01/21 | 1,545,000 | 1,779,686 | ||||||
Fort Smith, AR, Water & Sewer Rev., AGM, 4.5%, 10/01/22 | 455,000 | 518,145 | ||||||
Fort Smith, AR, Water & Sewer Rev., AGM, 5%, 10/01/32 | 2,000,000 | 2,193,800 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), “A”, 5%, 7/01/29 | 140,000 | 155,532 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), “A”, 5%, 7/01/35 | 140,000 | 152,947 | ||||||
Hot Springs, AR, Wastewater Rev., 4%, 12/01/19 | 510,000 | 562,566 | ||||||
Hot Springs, AR, Wastewater Rev., 5%, 12/01/20 | 500,000 | 579,135 | ||||||
Hot Springs, AR, Wastewater Rev., 5%, 12/01/21 | 650,000 | 759,545 | ||||||
Hot Springs, AR, Wastewater Rev., ASSD GTY, 4.625%, 12/01/37 | 1,260,000 | 1,349,347 | ||||||
Little Rock, AR, Sewer Rev., 5.5%, 10/01/30 | 750,000 | 833,265 | ||||||
Little Rock, AR, Sewer Rev., 5.75%, 10/01/38 | 1,000,000 | 1,118,770 | ||||||
Little Rock, AR, Sewer Rev., “A”, AGM, 4.375%, 6/01/33 | 750,000 | 797,280 | ||||||
Little Rock, AR, Sewer Rev., “C”, AGM, 5%, 10/01/37 | 3,000,000 | 3,258,600 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “C-7”, NATL, 5%, 7/01/32 | 50,000 | 54,585 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “D-1”, AGM, 5%, 7/01/35 | 30,000 | 32,845 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “D-1”, AGM, 5%, 7/01/37 | 75,000 | 81,702 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “D-6”, NATL, 5%, 7/01/36 | 65,000 | 70,105 | ||||||
Rogers, AR, Sewer Rev., AMBAC, 5%, 2/01/37 | 1,000,000 | 1,044,640 | ||||||
Wasco, CA, Semitropic Improvement District (Semitropic Water Storage District), “A”, 5%, 12/01/38 | 1,325,000 | 1,489,340 | ||||||
$ | 27,084,562 | |||||||
Total Municipal Bonds (Identified Cost, $156,244,905) | $ | 163,898,212 | ||||||
Money Market Funds - 0.1% | ||||||||
MFS Institutional Money Market Portfolio, 0.12%, at Cost and Net Asset Value (v) | 139,679 | $ | 139,679 | |||||
Total Investments (Identified Cost, $156,384,584) | $ | 164,037,891 | ||||||
Other Assets, Less Liabilities - 1.1% | 1,789,337 | |||||||
Net Assets - 100.0% | $ | 165,827,228 |
See Portfolio Footnotes and Notes to Financial Statements
17
Table of Contents
PORTFOLIO OF INVESTMENTS
9/30/15 (unaudited)
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 - 98.2% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 5.6% | ||||||||
Chicago, IL, O’Hare International Airport Rev., Third Lien, “A”, 5.625%, 1/01/35 | $ | 780,000 | $ | 894,282 | ||||
Los Angeles, CA, Department of Airports Rev. (Los Angeles International), “A”, 5%, 5/15/29 | 3,000,000 | 3,457,380 | ||||||
Orange County, CA, Airport Rev., “A”, 5%, 7/01/31 | 1,310,000 | 1,462,956 | ||||||
San Diego County, CA, Regional Airport Authority Rev., “A”, 5%, 7/01/21 | 1,500,000 | 1,721,400 | ||||||
San Francisco, CA, City & County Airports Commission, International Airport Rev., “A”, 5%, 5/01/31 | 850,000 | 943,917 | ||||||
San Francisco, CA, City & County Airports Commission, International Airport Rev., “D”, 5%, 5/01/25 | 2,000,000 | 2,355,380 | ||||||
San Jose, CA, Airport Rev., “A”, BHAC, 5.5%, 3/01/23 | 2,345,000 | 2,485,161 | ||||||
San Jose, CA, Airport Rev., “A-2”, 5.25%, 3/01/34 | 2,560,000 | 2,905,805 | ||||||
$ | 16,226,281 | |||||||
General Obligations - General Purpose - 6.4% | ||||||||
Commonwealth of Puerto Rico, “A”, NATL, 5.5%, 7/01/20 | $ | 780,000 | $ | 775,203 | ||||
Guam Government, “A”, 5.25%, 11/15/37 | 815,000 | 890,901 | ||||||
Guam Government, “A”, 6.75%, 11/15/29 | 85,000 | 104,122 | ||||||
Guam Government, “A”, 7%, 11/15/39 | 95,000 | 117,282 | ||||||
Puerto Rico Public Buildings Authority Rev., “H”, AMBAC, 5.5%, 7/01/17 | 100,000 | 99,333 | ||||||
Puerto Rico Public Buildings Authority Rev., “H”, AMBAC, 5.5%, 7/01/18 | 70,000 | 69,117 | ||||||
State of California, 5%, 8/01/34 | 2,200,000 | 2,418,768 | ||||||
State of California, 5.25%, 4/01/35 | 2,545,000 | 2,944,463 | ||||||
State of California, 6%, 11/01/39 | 3,000,000 | 3,572,490 | ||||||
State of California, 5.5%, 3/01/40 | 3,670,000 | 4,262,962 | ||||||
State of California, 5.25%, 11/01/40 | 2,775,000 | 3,235,345 | ||||||
$ | 18,489,986 | |||||||
General Obligations - Schools - 12.1% | ||||||||
Beaumont, CA, Unified School District (Election of 2008), Capital Appreciation, “C”, AGM, 0%, 8/01/44 | $ | 4,600,000 | $ | 1,256,030 | ||||
Beverly Hills, CA, Unified School District (Election of 2008), Capital Appreciation, 0%, 8/01/29 | 4,335,000 | 2,820,741 | ||||||
Chabot-Las Positas, CA, Community College (Election of 2004), “B”, AMBAC, 5%, 8/01/30 | 1,090,000 | 1,129,153 | ||||||
Colton, CA, Joint Union School District (Election of 2001), Capital Appreciation, “C”, FGIC, 0%, 2/01/32 | 1,000,000 | 423,880 | ||||||
Colton, CA, Joint Union School District (Election of 2001), Capital Appreciation, “C”, FGIC, 0%, 2/01/33 | 3,000,000 | 1,204,290 |
Issuer | Shares/Par | Value ($) | ||||||
General Obligations - Schools - continued | ||||||||
Folsom Cordova, CA, Unified School District (Election of 2012), “A”, 5%, 10/01/38 | $ | 2,465,000 | $ | 2,759,469 | ||||
Garvey, CA, School District (Election of 2004), Capital Appreciation, AGM, 0%, 8/01/31 | 2,120,000 | 1,106,216 | ||||||
Lake Tahoe, CA, Unified School District (Election of 2008), Capital Appreciation, AGM, 0%, 8/01/45 | 870,000 | 479,683 | ||||||
Mendocino Lake, CA, Community College District Rev. (Election of 2006), Capital Appreciation, “B”, AGM, 0%, 8/01/32 | 1,570,000 | 790,150 | ||||||
Moorpark, CA, Unified School District (Election of 2008), Capital Appreciation, “A”, ASSD GTY, 0%, 8/01/33 | 500,000 | 232,480 | ||||||
Moreland, CA, School District (Election of 2002), Capital Appreciation, “B”, FGIC, 0%, 8/01/28 | 1,440,000 | 908,194 | ||||||
Mount Diablo, CA, Unified School District (Election of 2010), Convertible Capital Appreciation, “A”, AGM, 0%, 8/01/30 | 3,000,000 | 2,512,080 | ||||||
Mount San Antonio, CA, Community College District Rev. (Election of 2008), Capital Appreciation, 0%, 8/01/43 | 4,145,000 | 2,933,126 | ||||||
Napa Valley, CA, Unified School District (Election of 2006), Capital Appreciation, “A”, 0%, 8/01/29 | 3,385,000 | 2,057,742 | ||||||
Oakland, CA, Unified School District Rev., AGM, 5%, 8/01/28 | 830,000 | 961,514 | ||||||
Oakland, CA, Unified School District Rev., AGM, 5%, 8/01/30 | 830,000 | 948,408 | ||||||
San Bernardino, CA, City Unified School District, “A”, 5%, 8/01/23 | 600,000 | 725,664 | ||||||
San Diego, CA, Community College District (Election of 2002), Capital Appreciation, 0%, 8/01/33 | 2,000,000 | 2,117,080 | ||||||
San Diego, CA, Unified School District (Election of 2008), Capital Appreciation, “G”, 0%, 7/01/34 | 1,235,000 | 506,548 | ||||||
San Joaquin, CA, Delta Community College District (Election of 2004), Capital Appreciation, “B”, AGM, 0%, 8/01/18 | 2,350,000 | 2,264,766 | ||||||
San Jose, CA, Evergreen Community College District (Election of 2010), “A”, 5%, 8/01/41 | 1,235,000 | 1,395,550 | ||||||
San Mateo County, CA, Community College District (Election of 2001), Capital Appreciation, “A”, NATL, 0%, 9/01/21 | 4,300,000 | 3,895,284 | ||||||
Victor, CA, Elementary School District (Election of 2001), Capital Appreciation,“B”, 0%, 8/01/28 | 2,755,000 | 1,720,139 | ||||||
$ | 35,148,187 | |||||||
Healthcare Revenue - Hospitals - 12.6% | ||||||||
California Health Facilities Financing Authority Rev. (Balance Providence), 6.5%, 10/01/38 | $ | 1,720,000 | $ | 2,011,420 |
18
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Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
California Health Facilities Financing Authority Rev. (Catholic Healthcare West), “A”, 6%, 7/01/29 | $ | 1,500,000 | $ | 1,739,940 | ||||
California Health Facilities Financing Authority Rev. (Children’s Hospital of Orange County), 6.25%, 11/01/29 | 2,000,000 | 2,363,780 | ||||||
California Health Facilities Financing Authority Rev. (Marshall Medical Center), 5%, 11/01/33 | 750,000 | 843,105 | ||||||
California Health Facilities Financing Authority Rev. (Providence Health & Services), “B”, 5.5%, 10/01/39 | 1,000,000 | 1,139,780 | ||||||
California Health Facilities Financing Authority Rev. (Providence Health & Services), “C”, 6.5%, 10/01/33 | 1,500,000 | 1,754,625 | ||||||
California Health Facilities Financing Authority Rev. (Providence Health & Services), “C”, 6.5%, 10/01/38 (Prerefunded 10/01/18) | 30,000 | 35,083 | ||||||
California Municipal Finance Authority Rev. (Northbay Healthcare Group), 5%, 11/01/29 | 165,000 | 181,152 | ||||||
California Municipal Finance Authority Rev. (Northbay Healthcare Group), 5%, 11/01/28 | 205,000 | 226,259 | ||||||
California Municipal Finance Authority Rev. (Northbay Healthcare Group), 5%, 11/01/44 | 415,000 | 445,361 | ||||||
California Municipal Finance Authority Rev. (Northbay Healthcare Group), 5%, 11/01/30 | 85,000 | 92,978 | ||||||
California Municipal Finance Authority Rev. (Northbay Healthcare Group), 5%, 11/01/35 | 315,000 | 341,536 | ||||||
California Statewide Communities Development Authority Rev. (Community Hospital of the Monterey Peninsula), 6%, 6/01/33 | 1,250,000 | 1,498,888 | ||||||
California Statewide Communities Development Authority Rev. (Enloe Medical Center), CALHF, 6.25%, 8/15/33 | 2,000,000 | 2,256,000 | ||||||
California Statewide Communities Development Authority Rev. (Enloe Medical Center), “A”, CALHF, 5.5%, 8/15/23 | 1,000,000 | 1,126,130 | ||||||
California Statewide Communities Development Authority Rev. (John Muir Health), 5.125%, 7/01/39 | 1,000,000 | 1,097,200 | ||||||
California Statewide Communities Development Authority Rev. (Loma Linda University Medical Center), “A”, 5.5%, 12/01/54 | 1,650,000 | 1,728,507 | ||||||
California Statewide Communities Development Authority Rev. (Santa Ynez Valley Cottage Hospital), 5.25%, 11/01/30 | 1,740,000 | 1,969,837 | ||||||
California Statewide Communities Development Authority Rev. (Sutter Health), “A”, 5%, 8/15/32 | 390,000 | 438,376 | ||||||
California Statewide Communities Development Authority Rev. (Trinity Health Corp.), 5%, 12/01/41 | 2,550,000 | 2,823,080 | ||||||
Madera County, CA, COP (Children’s Hospital Central California), 5.375%, 3/15/36 | 3,000,000 | 3,334,920 | ||||||
Palomar Pomerado Health Care District, CA, COP, 6.75%, 11/01/39 | 1,805,000 | 2,000,373 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
San Buenaventura, CA, Rev. (Community Memorial Health System), 7.5%, 12/01/41 | $ | 1,000,000 | $ | 1,215,210 | ||||
Santa Clara County, CA, Financing Authority Insured Rev. (El Camino Hospital), “B”, AMBAC, 5.125%, 2/01/41 | 2,550,000 | 2,764,761 | ||||||
Washington Township, CA, Health Care District Rev., “A”, 6.25%, 7/01/39 | 1,000,000 | 1,135,020 | ||||||
West Contra Costa, CA, Healthcare District, AMBAC, 5.5%, 7/01/29 | 2,000,000 | 2,004,740 | ||||||
$ | 36,568,061 | |||||||
Healthcare Revenue - Long Term Care - 3.8% | ||||||||
ABAG Finance Authority for Non-Profit Corps., CA, Rev. (Episcopal Senior Communities), 6.125%, 7/01/41 | $ | 850,000 | $ | 960,101 | ||||
ABAG Finance Authority for Non-Profit Corps., CA, Rev. (Eskaton Properties, Inc.), 5%, 11/15/35 | 1,270,000 | 1,329,474 | ||||||
California Health Facilities Financing Authority Rev. (Northern California Presbyterian Homes and Services, Inc.), 5%, 7/01/34 | 700,000 | 793,513 | ||||||
California Health Facilities Financing Authority Rev. (Northern California Presbyterian Homes and Services, Inc.), 5%, 7/01/39 | 1,000,000 | 1,120,350 | ||||||
California Statewide Communities Development Authority Rev. (899 Charleston Project), “A”, 5.25%, 11/01/44 | 1,405,000 | 1,428,801 | ||||||
California Statewide Communities Development Authority Rev. (American Baptist Homes of the West), 6.25%, 10/01/39 | 1,500,000 | 1,652,820 | ||||||
California Statewide Communities Development Authority Rev. (Episcopal Communities & Services for Seniors Obligated Group), 5%, 5/15/47 | 1,785,000 | 1,897,152 | ||||||
California Statewide Communities Development Authority Rev. (The Terraces at San Joaquin Gardens), “A”, 6%, 10/01/42 | 750,000 | 805,298 | ||||||
Eden Township, CA, Healthcare District, COP, 6.125%, 6/01/34 | 1,090,000 | 1,164,720 | ||||||
$ | 11,152,229 | |||||||
Miscellaneous Revenue - Entertainment & Tourism - 0.2% | ||||||||
Agua Caliente Band of Cahuilla Indians, CA, Rev., 6%, 7/01/18 (n) | $ | 470,000 | $ | 465,906 | ||||
Miscellaneous Revenue - Other - 1.0% | ||||||||
California Infrastructure & Economic Development Bank Rev. (Walt Disney Family Museum), 5.25%, 2/01/33 | $ | 1,340,000 | $ | 1,450,362 | ||||
New York Liberty Development Corp., Liberty Rev. (3 World Trade Center Project), “1”, 5%, 11/15/44 | 1,395,000 | 1,408,978 | ||||||
$ | 2,859,340 | |||||||
Port Revenue - 0.5% | ||||||||
Long Beach, CA, Marina Rev. (Alamitos Bay Marina Project), 5%, 5/15/31 | $ | 1,335,000 | $ | 1,480,115 |
19
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Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Single Family Housing - State - 3.1% | ||||||||
California Housing Finance Agency Rev. (Home Mortgage), “E”, 4.75%, 2/01/30 | $ | 1,760,000 | $ | 1,775,083 | ||||
California Housing Finance Agency Rev. (Home Mortgage), “G”, 4.95%, 8/01/23 | 2,000,000 | 2,054,380 | ||||||
California Housing Finance Agency Rev. (Home Mortgage), “I”, 4.7%, 8/01/26 | 1,500,000 | 1,506,150 | ||||||
California Housing Finance Agency Rev. (Home Mortgage), “L”, 5.45%, 8/01/33 | 3,240,000 | 3,480,926 | ||||||
California Housing Finance Agency Rev. (Home Mortgage), “L”, FNMA, 5.5%, 8/01/38 | 245,000 | 249,344 | ||||||
$ | 9,065,883 | |||||||
State & Agency - Other - 0.3% | ||||||||
Pasadena, CA, COP, (Old Pasadena Parking Facilities Project), 6.25%, 1/01/18 | $ | 970,000 | $ | 1,028,578 | ||||
State & Local Agencies - 6.4% | ||||||||
Banning, CA, COP, Water Systems Improvement Project, ETM, AMBAC, 8%, 1/01/19 | $ | 385,000 | $ | 421,182 | ||||
California Public Works Board Lease Rev. (Judicial Council Projects), “A”, 5%, 3/01/28 | 2,120,000 | 2,472,429 | ||||||
California Public Works Board Lease Rev., Department of Education (Riverside Campus), 6%, 4/01/26 | 2,000,000 | 2,336,220 | ||||||
California Public Works Board Lease Rev., Department of General Services, 6.25%, 4/01/34 | 1,500,000 | 1,761,060 | ||||||
California Public Works Board Lease Rev., Department of Justice, “D”, 5.25%, 11/01/20 | 1,565,000 | 1,571,229 | ||||||
Delaware Valley, PA, Regional Finance Authority, “C”, FRN, 0.967%, 6/01/37 | 2,360,000 | 1,919,246 | ||||||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A”, AGM, 4.55%, 6/01/22 | 3,000,000 | 3,241,380 | ||||||
Oakland, CA, Joint Powers Financing Authority Rev., “A-1”, ASSD GTY, 5.25%, 1/01/17 | 1,375,000 | 1,455,204 | ||||||
Sacramento, CA, City Financing Authority Rev. (Master Lease Program Facilities), BAM, 5%, 12/01/31 | 1,000,000 | 1,142,090 | ||||||
Sacramento, CA, City Financing Authority Rev. (Master Lease Program Facilities), BAM, 5%, 12/01/32 | 550,000 | 625,103 | ||||||
Sacramento, CA, City Financing Authority Rev. (Master Lease Program Facilities), BAM, 5%, 12/01/30 | 500,000 | 575,705 | ||||||
San Diego, CA, Public Facilities Financing Authority Lease Rev. (Master Refunding Project), “A”, 5.25%, 3/01/40 | 1,000,000 | 1,129,640 | ||||||
$ | 18,650,488 | |||||||
Tax - Other - 0.2% | ||||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/24 | $ | 445,000 | $ | 493,616 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/29 | 145,000 | 160,647 | ||||||
$ | 654,263 |
Issuer | Shares/Par | Value ($) | ||||||
Tax Assessment - 13.3% | ||||||||
Concord, CA, Redevelopment Successor Agency Tax Allocation Refunding (Contra Costa County), BAM, 5%, 3/01/22 | $ | 520,000 | $ | 612,700 | ||||
Elk Grove, CA, Finance Authority Special Tax Rev., 5%, 9/01/27 | 2,000,000 | 2,347,180 | ||||||
Fontana, CA, Redevelopment Agency Tax Allocation (Jurupa Hills Redevelopment Project), “A”, 5.5%, 10/01/27 | 3,350,000 | 3,399,647 | ||||||
Glendale, CA, Redevelopment Agency, Tax Allocation Rev. (Central Glendale Redevelopment Project), 5.5%, 12/01/24 | 1,750,000 | 1,817,078 | ||||||
Huntington Beach, CA, Community Facilities District Special Tax (Grand Coast Resort), 5.125%, 9/01/31 | 1,000,000 | 1,101,580 | ||||||
Irvine, CA, Limited Obligation Improvement (Reassessment District #12-1), 5%, 9/02/23 | 340,000 | 396,525 | ||||||
Jurupa, CA, Community Facilities Services District, Special Tax (Eastvale Area District #31), “A”, 5%, 9/01/37 | 1,000,000 | 1,076,160 | ||||||
Lake Elsinore, CA, Public Financing Authority Rev., 5%, 9/01/35 | 1,000,000 | 1,070,470 | ||||||
Lee Lake, CA, Public Financing Authority Senior Lien Rev., “A”, 5.125%, 9/01/35 | 1,000,000 | 1,102,430 | ||||||
Los Angeles County, CA, Redevelopment Refunding Authority Tax Allocation Rev. “D”, 5%, 9/01/22 | 340,000 | 401,503 | ||||||
Los Angeles County, CA, Redevelopment Refunding Authority Tax Allocation Rev. “D”, 5%, 9/01/23 | 340,000 | 401,163 | ||||||
Los Angeles County, CA, Redevelopment Refunding Authority Tax Allocation Rev. (Hollywood/North Hollywood Project), “A”, 5%, 7/01/21 | 2,300,000 | 2,714,299 | ||||||
North Natomas, CA, Community Facilities District Special Tax, “4-E”, 5.25%, 9/01/33 | 840,000 | 943,354 | ||||||
Pittsburg, CA, Redevelopment Successor Agency, Tax Allocation (Los Medanos Community Development Project), AGM, 5%, 8/01/28 | 650,000 | 752,453 | ||||||
Pittsburg, CA, Redevelopment Successor Agency, Tax Allocation (Los Medanos Community Development Project), AGM, 5%, 8/01/29 | 1,350,000 | 1,552,500 | ||||||
Rancho Cucamonga, CA, Community Facilities District Special Tax, 5.25%, 9/01/33 | 1,000,000 | 1,112,060 | ||||||
Rancho Cucamonga, CA, Redevelopment Agency Tax Allocation (Successor Agency to The), AGM, 5%, 9/01/32 | 2,625,000 | 3,008,801 | ||||||
Riverside County, CA, Jurupa Valley Redevelopment Project Rev., “B”, AGM, 5%, 10/01/30 | 2,215,000 | 2,535,621 | ||||||
Riverside County, CA, Jurupa Valley Redevelopment Project Rev., “B”, AGM, 5%, 10/01/31 | 1,095,000 | 1,245,497 | ||||||
Riverside County, CA, Redevelopment Agency, Tax Allocation, “A”, AGM, 5%, 10/01/34 | 1,385,000 | 1,571,712 |
20
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Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Tax Assessment - continued | ||||||||
San Diego, CA, Redevelopment Agency, Tax Allocation (Centre City), “A”, AMBAC, 5.25%, 9/01/25 | $ | 2,360,000 | $ | 2,400,852 | ||||
San Diego, CA, Redevelopment Agency, Tax Allocation (Centre City), “B”, AMBAC, 5.3%, 9/01/20 | 1,250,000 | 1,252,175 | ||||||
San Francisco, CA, City & County Redevelopment Financing Authority, Tax Allocation (Mission Bay North Redevelopment), “C”, 6.375%, 8/01/32 | 1,000,000 | 1,140,930 | ||||||
San Francisco, CA, City & County Redevelopment Financing Authority, Tax Allocation (Mission Bay North Redevelopment), “C”, 6.5%, 8/01/39 | 1,000,000 | 1,145,870 | ||||||
San Francisco, CA, City & County Redevelopment Successor Agency, Tax Allocation (Mission Bay South Public Improvements), “A”, 5%, 8/01/43 | 750,000 | 817,568 | ||||||
Santa Cruz County, CA, Redevelopment Agency Tax Allocation Rev., 5%, 9/01/22 | 1,360,000 | 1,624,330 | ||||||
Santa Cruz County, CA, Redevelopment Agency Tax Allocation Rev., 5%, 9/01/23 | 1,000,000 | 1,203,260 | ||||||
$ | 38,747,718 | |||||||
Tobacco - 2.4% | ||||||||
Buckeye, OH, Tobacco Settlement Financing Authority, “A-2”, 6%, 6/01/42 | $ | 1,080,000 | $ | 907,697 | ||||
Buckeye, OH, Tobacco Settlement Financing Authority, “A-2”, 6.5%, 6/01/47 | 1,195,000 | 1,070,696 | ||||||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A-1”, 5.75%, 6/01/47 | 1,915,000 | 1,706,648 | ||||||
Illinois Railsplitter Tobacco Settlement Authority, 6%, 6/01/28 | 1,800,000 | 2,125,710 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 5%, 6/01/41 | 1,505,000 | 1,182,915 | ||||||
$ | 6,993,666 | |||||||
Toll Roads - 0.7% | ||||||||
Riverside County, CA, Transportation Commission, Toll Rev., “A”, 5.75%, 6/01/44 | $ | 1,680,000 | $ | 1,904,448 | ||||
Universities - Colleges - 11.9% | ||||||||
California Educational Facilities Authority Rev., 5%, 2/01/17 | $ | 545,000 | $ | 570,501 | ||||
California Educational Facilities Authority Rev., 5%, 2/01/26 (Prerefunded 2/01/17) | 325,000 | 345,056 | ||||||
California Educational Facilities Authority Rev. (Chapman University), 5%, 4/01/28 | 830,000 | 972,179 | ||||||
California Educational Facilities Authority Rev. (Claremont Graduate University), “A”, 6%, 3/01/33 | 1,500,000 | 1,657,470 | ||||||
California Educational Facilities Authority Rev. (Dominican University of California), 5%, 12/01/25 | 800,000 | 832,416 | ||||||
California Educational Facilities Authority Rev. (Dominican University of California), 5%, 12/01/36 | 1,150,000 | 1,188,698 |
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
California Educational Facilities Authority Rev. (Pitzer College), 6%, 4/01/40 | $ | 3,000,000 | $ | 3,543,000 | ||||
California Educational Facilities Authority Rev. (Santa Clara University), 5%, 4/01/31 | 1,060,000 | 1,241,811 | ||||||
California Educational Facilities Authority Rev. (Santa Clara University), 5%, 4/01/32 | 1,000,000 | 1,167,000 | ||||||
California Educational Facilities Authority Rev. (University of San Francisco), 6.125%, 10/01/30 | 1,760,000 | 2,143,979 | ||||||
California Educational Facilities Authority Rev. (University of The Pacific), 5.25%, 11/01/29 | 1,265,000 | 1,438,305 | ||||||
California Educational Facilities Authority Rev., ETM, 5%, 2/01/17 | 140,000 | 148,522 | ||||||
California Municipal Finance Authority Rev. (Azusa Pacific University Project), “B”, 5%, 4/01/35 | 1,655,000 | 1,782,054 | ||||||
California Municipal Finance Authority Rev. (Biola University), 5.8%, 10/01/28 | 2,000,000 | 2,177,780 | ||||||
California Municipal Finance Authority Rev. (University of La Verne), “A”, 6.125%, 6/01/30 | 1,500,000 | 1,718,760 | ||||||
California Municipal Finance Authority Rev. (University of La Verne), “A”, 6.25%, 6/01/40 | 1,500,000 | 1,712,205 | ||||||
California Public Works Board Lease Rev. (The Regents of the University of California), 5%, 4/01/34 | 1,500,000 | 1,711,890 | ||||||
California Public Works Board Lease Rev. (The Regents of the University of California), 5%, 12/01/28 (Prerefunded 12/01/21) | 2,125,000 | 2,568,126 | ||||||
California State University Rev., “A”, 5%, 11/01/24 | 2,130,000 | 2,505,732 | ||||||
California State University Rev., “A”, 5%, 11/01/30 | 3,320,000 | 3,913,981 | ||||||
California Statewide Communities Development Authority Rev. (Lancer Plaza Project), 5.875%, 11/01/43 | 1,270,000 | 1,287,856 | ||||||
$ | 34,627,321 | |||||||
Universities - Dormitories - 1.5% | ||||||||
California Municipal Finance Authority, Student Housing Rev. (Bowles Hall Foundation) “A”, 5%, 6/01/35 | $ | 225,000 | $ | 246,668 | ||||
California Statewide Communities Development Authority Rev. (Lancer Educational Student Housing Project), 5.625%, 6/01/33 | 2,000,000 | 2,027,900 | ||||||
California Statewide Communities Development Authority Rev. (Student Housing, SUCI East Campus), 6%, 5/15/40 | 2,000,000 | 2,175,760 | ||||||
$ | 4,450,328 | |||||||
Universities - Secondary Schools - 2.1% | ||||||||
California Municipal Finance Authority Rev. (Partnerships to Uplift Communities Project), “A”, 5%, 8/01/32 | $ | 825,000 | $ | 856,367 | ||||
California School Finance Authority, School Facility Rev. (Alliance for College-Ready Public Schools Projects), “A”, 5%, 7/01/30 | 1,245,000 | 1,307,673 |
21
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Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Universities - Secondary Schools - continued | ||||||||
California School Finance Authority, School Facility Rev. (Kipp LA Projects), “A”, 5%, 7/01/34 | $ | 530,000 | $ | 563,146 | ||||
California School Finance Authority, School Facility Rev. (Kipp LA Projects), “A”, 5.125%, 7/01/44 | 470,000 | 497,650 | ||||||
California Statewide Communities Development Authority School Facility Rev. (Aspire Public Schools), 6.125%, 7/01/46 | 1,300,000 | 1,379,300 | ||||||
California Statewide Communities Development Authority, School Facility Rev. (Alliance for College-Ready Public Schools), “A”, 6.375%, 7/01/47 | 1,270,000 | 1,381,785 | ||||||
$ | 5,985,921 | |||||||
Utilities - Cogeneration - 0.1% | ||||||||
California Pollution Control Financing Authority, Water Furnishing Rev. (San Diego County Water Desalination Project Pipeline), 5%, 11/21/45 | $ | 350,000 | $ | 360,035 | ||||
Utilities - Investor Owned - 0.7% | ||||||||
California Pollution Control Financing Authority, Water Facilities Rev. (American Water Capital Corp. Project), 5.25%, 8/01/40 | $ | 2,000,000 | $ | 2,123,280 | ||||
Utilities - Municipal Owned - 4.0% | ||||||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/39 | $ | 230,000 | $ | 261,584 | ||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/44 | 260,000 | 293,966 | ||||||
Imperial, CA, Irrigation District Electric Rev., “B”, 5%, 11/01/25 | 1,015,000 | 1,160,378 | ||||||
Imperial, CA, Irrigation District Electric Rev., “B”, 5%, 11/01/26 | 1,245,000 | 1,423,321 | ||||||
Puerto Rico Electric Power Authority Rev., “RR”, NATL, 5%, 7/01/22 | 1,315,000 | 1,289,095 | ||||||
Sacramento, CA, Municipal Utility District Rev., “X”, 5%, 8/15/25 | 2,130,000 | 2,513,954 | ||||||
Tuolumne Wind Project Authority Rev. (Tuolomne Co.), “A”, 5.625%, 1/01/29 | 2,000,000 | 2,267,740 | ||||||
Vernon, CA, Electric System Rev., “A”, 5.5%, 8/01/41 | 2,130,000 | 2,397,933 | ||||||
$ | 11,607,971 | |||||||
Utilities - Other - 2.4% | ||||||||
California M-S-R Energy Authority Gas Rev., “A”, 7%, 11/01/34 | $ | 1,750,000 | $ | 2,414,370 | ||||
Long Beach, CA, Bond Finance Authority Natural Gas Purchase Rev., “A”, 5.25%, 11/15/22 | 2,210,000 | 2,563,666 | ||||||
Southern California Public Power Authority (Natural Gas Project No. 1), “A”, 5%, 11/01/33 | 1,655,000 | 1,894,263 | ||||||
$ | 6,872,299 |
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - 6.9% | ||||||||
California Department of Water Resources Rev. (Central Valley Project Water System), “AM”, 5%, 12/01/24 | $ | 3,500,000 | $ | 4,272,695 | ||||
California Semitropic Water Storage Improvement Rev., “A”, ASSD GTYASSD GTY, 5%, 12/01/28 | 2,540,000 | 2,983,916 | ||||||
California Semitropic Water Storage Improvement Rev., “A”, ASSD GTYN, 5%, 12/01/27 | 460,000 | 544,787 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5.625%, 7/01/40 | 525,000 | 574,392 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), “A”, 5%, 7/01/29 | 410,000 | 455,510 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), “A”, 5%, 7/01/35 | 410,000 | 447,917 | ||||||
Madera, CA, Irrigation Financing Authority Water Rev., 6.5%, 1/01/40 | 2,560,000 | 3,135,155 | ||||||
Oxnard, CA, Financing Authority, Wastewater Rev., AGM, 5%, 6/01/30 | 1,660,000 | 1,888,632 | ||||||
Oxnard, CA, Financing Authority, Wastewater Rev., AGM, 5%, 6/01/31 | 415,000 | 469,469 | ||||||
San Diego, CA, Public Facilities Financing Authority Sewer Rev., “A”, 5%, 5/15/28 | 350,000 | 395,199 | ||||||
Soquel Creek, CA, Water District, COP, 5%, 3/01/43 | 1,715,000 | 1,875,901 | ||||||
Tulare, CA, Sewer Rev., AGM, 5%, 11/15/31 | 1,700,000 | 1,958,043 | ||||||
Tulare, CA, Sewer Rev., AGM, 5%, 11/15/35 | 830,000 | 944,449 | ||||||
$ | 19,946,065 | |||||||
Total Municipal Bonds (Identified Cost, $262,041,051) | $ | 285,408,369 | ||||||
Money Market Funds - 1.5% | ||||||||
MFS Institutional Money Market Portfolio, 0.12%, at Cost and Net Asset Value (v) | 4,480,124 | $ | 4,480,124 | |||||
Total Investments (Identified Cost, $266,521,175) | $ | 289,888,493 | ||||||
Other Assets, Less Liabilities - 0.3% | 834,890 | |||||||
Net Assets - 100.0% | $ | 290,723,383 |
22
Table of Contents
Portfolio of Investments (unaudited) – continued
Derivative Contracts at 9/30/15
Futures Contracts at 9/30/15
Description | Currency | Contracts | Value | Expiration Date | Unrealized Appreciation (Depreciation) | |||||||||||||
Liability Derivatives | ||||||||||||||||||
Interest Rate Futures | ||||||||||||||||||
U.S. Treasury Note 10 yr (Short) | USD | 47 | $6,050,516 | December - 2015 | $(52,305 | ) | ||||||||||||
|
|
At September 30, 2015, the fund had cash collateral of $63,450 to cover any commitments for certain derivative contracts. Cash collateral is comprised of “Deposits with brokers” in the Statements of Assets and Liabilities.
See Portfolio Footnotes and Notes to Financial Statements
23
Table of Contents
PORTFOLIO OF INVESTMENTS
9/30/15 (unaudited)
MFS GEORGIA MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
Municipal Bonds - 96.6% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 2.4% | ||||||||
Atlanta, GA, Airport Rev., “B”, 5%, 1/01/33 | $ | 1,000,000 | $ | 1,135,030 | ||||
Dallas and Fort Worth, TX, International Airport Rev., “B”, 5%, 11/01/44 | 75,000 | 82,598 | ||||||
Dallas and Fort Worth, TX, International Airport Rev., “C”, 5%, 11/01/45 | 55,000 | 60,116 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, 5%, 12/01/44 | 30,000 | 32,691 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, BAM, 5%, 12/01/39 | 35,000 | 38,710 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/39 | 25,000 | 26,469 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/44 | 40,000 | 42,101 | ||||||
$ | 1,417,715 | |||||||
General Obligations - General Purpose - 9.7% | ||||||||
Atlanta & Fulton County, GA, Recreation Authority Park Improvement, “A”, 5%, 12/01/32 | $ | 500,000 | $ | 576,590 | ||||
Atlanta, GA, Public Improvement Rev., 4.875%, 12/01/26 | 1,000,000 | 1,190,490 | ||||||
Commonwealth of Puerto Rico, “A”, NATL, 5.5%, 7/01/20 | 160,000 | 159,016 | ||||||
Guam Government, “A”, 5.25%, 11/15/37 | 100,000 | 109,313 | ||||||
Guam Government, “A”, 6.75%, 11/15/29 | 185,000 | 226,615 | ||||||
Guam Government, “A”, 7%, 11/15/39 | 25,000 | 30,864 | ||||||
Gwinnett County, GA, Development Authority Rev. (Civic & Cultural Center), 4%, 9/01/21 | 510,000 | 568,956 | ||||||
Hall County and Gainesville, GA, Hospital Authority Rev. (Northeast Georgia Health System, Inc.), “B”, 5%, 2/15/33 | 500,000 | 548,220 | ||||||
Lagrange-Troup County, GA, Hospital Authority Rev., 5.5%, 7/01/38 | 500,000 | 545,440 | ||||||
Puerto Rico Public Buildings Authority Rev., “H”, AMBAC, 5.5%, 7/01/17 | 110,000 | 109,266 | ||||||
Puerto Rico Public Buildings Authority Rev., “H”, AMBAC, 5.5%, 7/01/18 | 80,000 | 78,990 | ||||||
State of California, 6%, 11/01/39 | 420,000 | 500,149 | ||||||
State of Georgia, “E”, 5%, 7/01/16 | 500,000 | 518,005 | ||||||
Villa Rica, GA, Public Facilities Authority Rev. (Water and Sewerage Project), 5%, 3/01/39 | 500,000 | 565,615 | ||||||
$ | 5,727,529 | |||||||
General Obligations - Schools - 6.5% | ||||||||
Cherokee County, GA, School System, “A”, 5%, 8/01/21 | $ | 500,000 | $ | 594,891 | ||||
Gwinnett County, GA, School District, 5%, 2/01/21 | 1,000,000 | 1,186,890 |
Issuer | Shares/Par | Value ($) | ||||||
General Obligations - Schools - continued | ||||||||
Gwinnett County, GA, School District, 5%, 2/01/29 | $ | 1,000,000 | $ | 1,211,620 | ||||
Jefferson, GA, School District, “A”, 5.25%, 2/01/29 | 500,000 | 579,850 | ||||||
Moorpark, CA, Unified School District (Election of 2008), Capital Appreciation, “B”, AGM, 0%, 8/01/36 | 660,000 | 268,686 | ||||||
$ | 3,841,937 | |||||||
Healthcare Revenue - Hospitals - 17.8% | ||||||||
Clarke County, GA, Hospital Authority Rev. (Athens Regional Medical Center Project), 5%, 1/01/32 | $ | 1,000,000 | $ | 1,119,870 | ||||
Cobb County, GA, Kennestone Hospital Authority Rev. (Wellstar Health System, Inc.), “B”, AMBAC, 6.25%, 4/01/34 | 500,000 | 580,940 | ||||||
Dalton, GA, Development Authority Rev. (Hamilton Health Care System), 5%, 8/15/28 | 500,000 | 557,210 | ||||||
DeKalb County, GA, Hospital Authority Rev. (DeKalb Medical Center, Inc.), 6.125%, 9/01/40 | 500,000 | 542,895 | ||||||
DeKalb County, GA, Private Hospital Authority Rev. Anticipation Certificates (Children’s Healthcare), 5.25%, 11/15/39 | 750,000 | 842,550 | ||||||
Escambia County, FL, Health Facilities Authority (Baptist Hospital, Inc.), “A”, 6%, 8/15/36 | 350,000 | 396,260 | ||||||
Fulton County, GA, Development Authority Rev. (Piedmont Healthcare), “A”, 5.25%, 6/15/37 | 700,000 | 764,365 | ||||||
Georgia Medical Center Hospital Authority Rev. (Columbus Regional Healthcare System, Inc.), ASSD GTY, 6.5%, 8/01/38 | 300,000 | 335,619 | ||||||
Glynn-Brunswick, GA, Memorial Hospital Authority Rev., 5.625%, 8/01/34 (Prerefunded 8/01/18) | 675,000 | 764,708 | ||||||
Glynn-Brunswick, GA, Memorial Hospital Authority Rev. (Southeast Georgia Health System Project), 5%, 8/01/28 | 500,000 | 575,600 | ||||||
Glynn-Brunswick, GA, Memorial Hospital Authority Rev., Unrefunded Balance, 5.625%, 8/01/34 | 75,000 | 81,980 | ||||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 7%, 8/15/44 (Prerefunded 8/15/19) | 200,000 | 244,814 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.25%, 7/01/31 | 45,000 | 51,521 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.375%, 7/01/41 | 65,000 | 73,629 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6.375%, 6/01/40 | 200,000 | 226,254 |
24
Table of Contents
Portfolio of Investments (unaudited) – 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”, 6.5%, 3/01/45 | $ | 135,000 | $ | 152,859 | ||||
Miami-Dade County, FL, Health Facilities Authority Hospital Rev. (Variety Children’s Hospital), “A”, 6%, 8/01/30 | 45,000 | 52,064 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6%, 10/01/27 | 130,000 | 145,466 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6.125%, 10/01/39 | 180,000 | 198,850 | ||||||
North Carolina Medical Care Commission, Hospital Rev. (The North Carolina Baptist Hospitals, Inc.), 5.25%, 6/01/29 | 355,000 | 398,928 | ||||||
Richmond County, GA, Hospital Authority Rev. Anticipation Certificates (University Health Services, Inc. Project), 5.5%, 1/01/36 | 750,000 | 825,518 | ||||||
Thomasville, GA, Hospital Authority Rev. Anticipation Certificates (John D. Archbold Memorial Hospital), 5.125%, 11/01/30 | 500,000 | 557,500 | ||||||
Thomasville, GA, Hospital Authority Rev. Anticipation Certificates (John D. Archbold Memorial Hospital), 5.375%, 11/01/40 | 500,000 | 557,365 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (ProHealth Care, Inc. Obligated Group), 6.625%, 2/15/39 (Prerefunded 2/15/19) | 385,000 | 457,080 | ||||||
$ | 10,503,845 | |||||||
Healthcare Revenue - Long Term Care - 1.8% | ||||||||
Georgia Medical Center Hospital Authority Rev. (Spring Harbor Green Island Project), 5.25%, 7/01/37 | $ | 200,000 | $ | 201,798 | ||||
Hall County and Gainesville, GA, Development Authority Retirement Community Rev. (ACTS Retirement), 6.625%, 11/15/39 | 200,000 | 226,058 | ||||||
Richmond County, GA, Development Authority Rev., Capital Appreciation, ETM, 0%, 12/01/21 | 225,000 | 202,664 | ||||||
Savannah, GA, Economic Development Authority Rev., Capital Appreciation, “C”, ETM, 0%, 12/01/21 | 500,000 | 450,365 | ||||||
$ | 1,080,885 | |||||||
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 | $ | 517,340 | ||||
Industrial Revenue - Paper - 1.1% | ||||||||
Rockdale County, GA, Development Authority Project Rev. (Visy Paper Project), “A”, 6.125%, 1/01/34 | $ | 150,000 | $ | 154,832 | ||||
Savannah, GA, Economic Development Pollution (Union Camp Corp.), 6.15%, 3/01/17 | 500,000 | 523,850 | ||||||
$ | 678,682 |
Issuer | Shares/Par | Value ($) | ||||||
Miscellaneous Revenue - Other - 2.0% | ||||||||
Florida Citizens Property Insurance Corp., “A-1”, 5%, 6/01/20 | $ | 285,000 | $ | 326,490 | ||||
Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/40 | 75,000 | 78,653 | ||||||
Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/44 | 110,000 | 114,913 | ||||||
New York Liberty Development Corp., Liberty Rev. (3 World Trade Center Project), “1”, 5%, 11/15/44 | 300,000 | 303,006 | ||||||
New York, NY, Industrial Development Agency, Airport Facilities Rev. (Transportation Infrastructure Properties LLC), 5%, 7/01/28 | 310,000 | 332,605 | ||||||
$ | 1,155,667 | |||||||
Sales & Excise Tax Revenue - 1.4% | ||||||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6.5%, 1/15/30 | $ | 265,000 | $ | 307,893 | ||||
Guam Government Business Privilege Tax Rev., “A”, 5.25%, 1/01/36 | 170,000 | 186,769 | ||||||
Metropolitan Atlanta, GA, Rapid Transit Authority Rev., “B”, AGM, 5%, 7/01/37 | 250,000 | 264,920 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., 5.25%, 8/01/57 | 140,000 | 86,801 | ||||||
$ | 846,383 | |||||||
Single Family Housing - Local - 0.9% | ||||||||
Atlanta, GA, Urban Residential Financing Authority, Multifamily Housing Rev. (Ginnie Mae Collateralized - Amal Heights), GNMA, 4.9%, 5/20/40 | $ | 500,000 | $ | 536,120 | ||||
Single Family Housing - State - 1.9% | ||||||||
California Housing Finance Agency Rev. (Home Mortgage), “I”, 4.7%, 8/01/26 | $ | 300,000 | $ | 301,230 | ||||
Georgia Housing & Finance Authority Rev., Single Family Mortgage, “A”, 3.5%, 6/01/45 | 750,000 | 798,983 | ||||||
$ | 1,100,213 | |||||||
State & Agency - Other - 2.8% | ||||||||
Carroll City-County, GA, Hospital Authority Rev. (Tanner Medical Center), 5%, 7/01/40 | $ | 500,000 | $ | 553,540 | ||||
Floyd County, GA, Hospital Authority Rev. Anticipation Certificates (Floyd Medical Center Project), “B”, 5%, 7/01/32 | 1,000,000 | 1,108,490 | ||||||
$ | 1,662,030 | |||||||
State & Local Agencies - 2.7% | ||||||||
Delaware Valley, PA, Regional Finance Authority, “C”, FRN, 0.967%, 6/01/37 | $ | 460,000 | $ | 374,090 | ||||
Georgia Municipal Association, Inc. (Riverdale Public Purpose Project), ASSD GTY, 5.5%, 5/01/38 | 1,000,000 | 1,121,150 | ||||||
Los Angeles, CA, Municipal Improvement Corp. Lease Rev. (Real Property), “E”, 6%, 9/01/39 | 115,000 | 132,835 | ||||||
$ | 1,628,075 |
25
Table of Contents
Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Tax - Other - 1.6% | ||||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/24 | $ | 75,000 | $ | 83,194 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/29 | 25,000 | 27,698 | ||||||
Virgin Islands Public Finance Authority Rev., “A-1”, 5%, 10/01/29 | 50,000 | 53,453 | ||||||
Virgin Islands Public Finance Authority Rev., “B”, AGM, 5%, 10/01/25 | 140,000 | 158,036 | ||||||
Virgin Islands Public Finance Authority Rev., “B”, 5%, 10/01/25 | 50,000 | 54,873 | ||||||
Virgin Islands Public Finance Authority Rev., Matching Fund Loan Note, “A”, AGM, 5%, 10/01/25 | 135,000 | 154,120 | ||||||
Virgin Islands Public Finance Authority Rev., Matching Fund Loan Note, “A”, 5%, 10/01/29 | 190,000 | 206,152 | ||||||
Virgin Islands Public Finance Authority Rev., Matching Fund Loan Note, “A”, 6%, 10/01/39 | 180,000 | 196,110 | ||||||
$ | 933,636 | |||||||
Tax Assessment - 0.5% | ||||||||
Atlanta, GA, Tax Allocation (Eastside Project), “B”, 5.6%, 1/01/30 | $ | 150,000 | $ | 150,537 | ||||
Atlanta, GA, Tax Allocation (Princeton Lakes Project), 5.5%, 1/01/31 | 125,000 | 125,315 | ||||||
$ | 275,852 | |||||||
Tobacco - 1.4% | ||||||||
Illinois Railsplitter Tobacco Settlement Authority, 6%, 6/01/28 | $ | 235,000 | $ | 277,523 | ||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.75%, 6/01/34 | 90,000 | 69,569 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 5%, 6/01/41 | 335,000 | 263,307 | ||||||
New Jersey Tobacco Settlement Financing Corp., Capital Appreciation, “1-B”, 0%, 6/01/41 | 840,000 | 211,789 | ||||||
$ | 822,188 | |||||||
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 | $ | 80,000 | $ | 99,324 | ||||
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 | 72,759 | ||||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 6%, 1/01/37 | 120,000 | 135,524 | ||||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 5.5%, 1/01/42 | 190,000 | 206,217 | ||||||
$ | 513,824 | |||||||
Transportation - Special Tax - 0.3% | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “CC”, AGM, 5.5%, 7/01/28 | $ | 185,000 | $ | 183,796 |
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - 19.1% | ||||||||
Athens, GA, Housing Authority Rev. (University of Georgia East Campus Funding), 5.25%, 6/15/35 | $ | 500,000 | $ | 559,015 | ||||
Athens-Clarke County, GA, Unified Government Development Authority, Educational Facilities Rev., Convertible Capital Appreciation, 5%, 6/15/24 | 250,000 | 271,055 | ||||||
Athens-Clarke County, GA, Unified Government Development Authority, Educational Facilities Rev., Convertible Capital Appreciation, 5%, 6/15/31 | 250,000 | 270,715 | ||||||
Atkinson-Coffee County, GA, Joint Development Authority Rev. (SGC Real Estate Foundation LLC), ASSD GTY, 5.25%, 6/01/34 | 500,000 | 543,690 | ||||||
Atlanta, GA, Development Authority Educational Facilities Rev. (Science Park LLC), 5%, 7/01/32 | 500,000 | 528,855 | ||||||
Atlanta, GA, Development Authority Educational Facilities Rev. (Science Park LLC), 5%, 7/01/39 | 500,000 | 527,520 | ||||||
Bleckley-Dodge County, GA, Student Housing Facilities Rev. (Middle Georgia College), 5.25%, 7/01/38 | 500,000 | 542,390 | ||||||
Cobb County, GA, Development Authority, Dining Hall Lease Rev. (KSU Dining Hall), ASSD GTY, 5.75%, 7/15/39 | 1,000,000 | 1,107,060 | ||||||
Cobb County, GA, Development Authority, Sports & Recreation Facilities Lease Rev. (Kennesaw State University Foundation), AGM, 5%, 7/15/35 | 750,000 | 840,915 | ||||||
Dahlonega, GA, Downtown Development Authority Rev. (North Georgia PHD LLC), ASSD GTY, 5.25%, 7/01/34 | 500,000 | 555,585 | ||||||
Dekalb Newton & Gwinnett Counties, GA, Joint Development Authority Rev. (GGC Foundation LLC), 6%, 7/01/34 | 500,000 | 571,950 | ||||||
Fulton County, GA, Development Authority Rev. (Georgia Tech Foundation Funding), SYNCORA, 5%, 6/01/32 | 500,000 | 528,075 | ||||||
Fulton County, GA, Development Authority Rev. (Spelman College), 5%, 6/01/28 | 500,000 | 582,425 | ||||||
Georgia Higher Education Facilities Authority Rev., 6%, 6/15/34 (Prerefunded 6/15/18) | 50,000 | 56,975 | ||||||
Georgia Higher Education Facilities Authority Rev., 6%, 6/15/34 (Prerefunded 8/15/19) | 250,000 | 284,875 | ||||||
Marietta, GA, Development Facilities Authority Rev. (Life University), 7%, 6/15/30 | 100,000 | 105,230 | ||||||
Marietta, GA, Development Facilities Authority Rev. (Life University), 7%, 6/15/39 | 100,000 | 104,626 | ||||||
New Jersey Educational Facilities Authority Rev. (University of Medicine & Dentistry), “B”, ETM, 6%, 12/01/17 | 275,000 | 298,141 | ||||||
Pinellas County, FL, Educational Facilities Authority Rev. (Barry University), 6%, 10/01/41 | 65,000 | 72,574 | ||||||
Private Colleges & Universities, GA, Authority Rev. (Agnes Scott College), 5%, 6/01/24 (Prerefunded 6/01/19) | 190,000 | 216,931 |
26
Table of Contents
Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
Private Colleges & Universities, GA, Authority Rev. (Agnes Scott College), 5%, 6/01/24 | $ | 310,000 | $ | 350,436 | ||||
Private Colleges & Universities, GA, Authority Rev. (Mercer University Project), 5%, 10/01/40 | 350,000 | 372,971 | ||||||
Private Colleges & Universities, GA, Authority Rev. (Mercer University), “C”, 5.25%, 10/01/27 | 350,000 | 393,936 | ||||||
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 | 21,326 | ||||||
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 | 38,142 | ||||||
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 | 50,206 | ||||||
Richmond County, GA, Development Authority Rev. (Georgia Regents University Academic Research Center Project), AGM, 5%, 12/15/32 | 325,000 | 372,161 | ||||||
Savannah, GA, Economic Development Authority Rev. (AASU Student Union LLC), ASSD GTY, 5.125%, 6/15/39 | 500,000 | 542,925 | ||||||
Savannah, GA, Economic Development Authority Rev. (SSU Community Development I LLC Project), ASSD GTY, 5.5%, 6/15/35 | 500,000 | 568,925 | ||||||
$ | 11,279,630 | |||||||
Universities - Dormitories - 0.7% | ||||||||
Cobb County, GA, Development Authority Student Housing Rev. (Kennesaw State University Real Estate Foundations), “C”, 5%, 7/15/30 | $ | 400,000 | $ | 435,844 | ||||
Universities - Secondary Schools - 0.1% | ||||||||
North Texas Education Finance Corp., Education Rev. (Uplift Education), “A”, 5.125%, 12/01/42 | $ | 75,000 | $ | 78,595 | ||||
Utilities - Investor Owned - 0.3% | ||||||||
Michigan Strategic Fund Ltd. Obligation Rev. (Detroit Edison Co.), 5.5%, 8/01/29 (Put Date 8/01/16) | $ | 160,000 | $ | 165,643 | ||||
Utilities - Municipal Owned - 4.7% | ||||||||
Georgia Municipal Electric Authority Power Rev., “A”, NATL, 6.5%, 1/01/20 | $ | 855,000 | $ | 939,423 | ||||
Georgia Municipal Gas Authority Rev. (Gas Portfolio III Project), “S”, 5%, 10/01/25 | 500,000 | 581,325 | ||||||
Georgia Municipal Gas Authority Rev. (Gas Portfolio III Project), “S”, 5%, 10/01/26 | 500,000 | 577,675 | ||||||
Guam Power Authority Rev., “A”, 5.5%, 10/01/30 | 160,000 | 178,218 |
Issuer | Shares/Par | Value ($) | ||||||
Utilities - Municipal Owned - continued | ||||||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/39 | $ | 50,000 | $ | 56,866 | ||||
Guam Power Authority Rev., “A”, 5.5%, 10/01/40 | 260,000 | 285,425 | ||||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/44 | 60,000 | 67,838 | ||||||
Long Island, NY, Power Authority, Electric Systems Rev., “A”, 6%, 5/01/33 | 100,000 | 115,036 | ||||||
$ | 2,801,806 | |||||||
Utilities - Other - 3.2% | ||||||||
Georgia Main Street Natural Gas, Inc., Gas Project Rev., “A”, 5%, 3/15/22 | $ | 910,000 | $ | 1,044,307 | ||||
Georgia Main Street Natural Gas, Inc., Gas Project Rev., “B”, 5%, 3/15/19 | 250,000 | 274,235 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/19 | 225,000 | 252,522 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/20 | 250,000 | 283,490 | ||||||
Texas Gas Acquisition & Supply Corp III., Gas Supply Rev., 5%, 12/15/31 | 40,000 | 43,393 | ||||||
$ | 1,897,947 | |||||||
Water & Sewer Utility Revenue - 11.9% | ||||||||
Athens-Clarke County, GA, Unified Government Water & Sewer Rev, 5.625%, 1/01/33 | $ | 500,000 | $ | 575,210 | ||||
Cherokee County, GA, Water & Sewer Authority Rev., 5%, 8/01/21 | 385,000 | 456,652 | ||||||
Cherokee County, GA, Water & Sewer Authority Rev., 5%, 8/01/28 | 800,000 | 919,912 | ||||||
DeKalb County, GA, Water & Sewer Rev., “A”, 5.25%, 10/01/31 | 1,000,000 | 1,165,590 | ||||||
DeKalb County, GA, Water & Sewer Rev., “B”, 5.25%, 10/01/25 | 1,000,000 | 1,252,360 | ||||||
Forsyth County, GA, Water & Sewer Authority Rev., 5%, 1/01/26 | 500,000 | 593,730 | ||||||
Fulton County, GA, Water & Sewer Rev., 5%, 1/01/23 | 500,000 | 580,655 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5.625%, 7/01/40 | 60,000 | 65,645 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), “A”, 5%, 7/01/29 | 45,000 | 49,995 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), “A”, 5%, 7/01/35 | 45,000 | 49,162 | ||||||
Henry County, GA, Water & Sewer Authority Rev., BHAC, 5.25%, 2/01/27 | 1,000,000 | 1,260,370 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “C-7”, NATL, 5%, 7/01/32 | 15,000 | 16,376 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “D-1”, AGM, 5%, 7/01/35 | 10,000 | 10,948 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “D-1”, AGM, 5%, 7/01/37 | 20,000 | 21,787 |
27
Table of Contents
Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - continued | ||||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “D-6”, NATL, 5%, 7/01/36 | $ | 20,000 | $ | 21,571 | ||||
$ | 7,039,963 | |||||||
Total Municipal Bonds (Identified Cost, $53,139,486) | $ | 57,125,145 | ||||||
Money Market Funds - 2.4% | ||||||||
MFS Institutional Money Market Portfolio, 0.12%, at Cost and Net Asset Value (v) | 1,453,747 | $ | 1,453,747 | |||||
Total Investments (Identified Cost, $54,593,233) | $ | 58,578,892 | ||||||
Other Assets, Less Liabilities - 1.0% | 563,389 | |||||||
Net Assets - 100.0% | $ | 59,142,281 |
See Portfolio Footnotes and Notes to Financial Statements
28
Table of Contents
PORTFOLIO OF INVESTMENTS
9/30/15 (unaudited)
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 - 97.9% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 1.0% | ||||||||
Metropolitan Washington, DC, Airport Authority Rev., “A”, 5%, 10/01/39 | $ | 750,000 | $ | 850,013 | ||||
General Obligations - General Purpose - 15.9% | ||||||||
Baltimore County, MD, Metropolitan District, “C”, 4%, 9/01/17 | $ | 2,000,000 | $ | 2,131,140 | ||||
Baltimore County, MD, Public Improvement, 5%, 2/01/28 | 2,000,000 | 2,350,880 | ||||||
Baltimore, MD, Consolidated Public Improvement, “B”, 5%, 10/15/22 | 500,000 | 605,180 | ||||||
Guam Government, “A”, 6.75%, 11/15/29 | 70,000 | 85,747 | ||||||
Guam Government, “A”, 7%, 11/15/39 | 80,000 | 98,764 | ||||||
Montgomery County, MD, Consolidated Public Improvement, “A”, 5%, 11/01/26 | 1,000,000 | 1,233,290 | ||||||
Prince George’s County, MD, Consolidated Public Improvement, “A”, 5%, 9/15/30 | 1,500,000 | 1,752,480 | ||||||
State of California, 6%, 11/01/39 | 720,000 | 857,398 | ||||||
State of Maryland, 5%, 8/01/20 (Prerefunded 8/01/17) | 3,500,000 | 3,779,405 | ||||||
Washington Suburban Sanitary District, MD, Consolidated Public Improvement, 5%, 6/01/21 | 500,000 | 596,475 | ||||||
$ | 13,490,759 | |||||||
Healthcare Revenue - Hospitals - 22.3% | ||||||||
Escambia County, FL, Health Facilities Authority (Baptist Hospital, Inc.), “A”, 6%, 8/15/36 | $ | 590,000 | $ | 667,980 | ||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 7%, 8/15/44 (Prerefunded 8/15/19) | 345,000 | 422,304 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6.375%, 6/01/40 | 370,000 | 418,570 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6.5%, 3/01/45 | 575,000 | 651,067 | ||||||
Louisville & Jefferson County, KY, Metropolitan Government Healthcare Systems Rev. (Norton Healthcare, Inc.), 5.25%, 10/01/36 | 640,000 | 656,294 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Anne Arundel Health System), 5%, 7/01/40 | 1,000,000 | 1,071,170 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Anne Arundel Health System), “A”, 6.75%, 7/01/39 (Prerefunded 7/01/19) | 1,000,000 | 1,210,010 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Carroll Hospital), “A”, 5%, 7/01/37 | 1,000,000 | 1,071,440 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Doctors Community Hospital), “A”, 5%, 7/01/29 | 750,000 | 759,105 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Johns Hopkins Health System), “A”, 5%, 5/15/26 | 250,000 | 283,975 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Johns Hopkins Health System), “C”, 5%, 5/15/38 | $ | 330,000 | $ | 366,125 | ||||
Maryland Health & Higher Educational Facilities Authority Rev. (LifeBridge Health Issue), 5%, 7/01/28 | 750,000 | 865,358 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Medlantic/Helix Parent, Inc.), “A”, AGM, 5.25%, 8/15/38 | 1,000,000 | 1,136,170 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Medstar Health), “A”, 5%, 8/15/41 | 505,000 | 551,278 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Mercy Medical Center), “A”, 5.5%, 7/01/42 | 750,000 | 789,908 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Meritus Medical Center), 5%, 7/01/27 | 500,000 | 566,360 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Peninsula Regional Medical Center), 5%, 7/01/36 (Prerefunded 7/01/16) | 1,000,000 | 1,033,220 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Suburban Hospital), “A”, 5.5%, 7/01/16 | 410,000 | 411,829 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (University of Maryland Medical System), AMBAC, 5%, 7/01/31 | 645,000 | 696,471 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (University of Maryland Medical System), “A”, 5%, 7/01/41 | 500,000 | 516,610 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Washington County Hospital), 5.75%, 1/01/38 | 500,000 | 554,785 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Western Maryland Health System), 5.25%, 7/01/34 | 1,000,000 | 1,114,930 | ||||||
Maryland Industrial Development Authority, Economic Development Rev., RIBS, FRN, AGM, 11.207%, 8/26/22 (p) | 850,000 | 1,009,001 | ||||||
Montgomery County, MD, Rev. (Trinity Health Corp.), 5%, 12/01/40 | 1,000,000 | 1,109,460 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6%, 10/01/27 | 480,000 | 537,106 | ||||||
Richmond, IN, Hospital Authority Rev. (Reid Hospital), “A”, 6.5%, 1/01/29 (Prerefunded 1/01/19) | 415,000 | 486,260 | ||||||
$ | 18,956,786 | |||||||
Healthcare Revenue - Long Term Care - 2.5% | ||||||||
Gaithersburg, MD, Economic Development Rev. (Asbury Maryland Obligated Group), “A”, 5.125%, 1/01/36 | $ | 400,000 | $ | 405,664 |
29
Table of Contents
Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Long Term Care - continued | ||||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Charlestown Community), 6.25%, 1/01/41 | $ | 750,000 | $ | 833,303 | ||||
Maryland Health & Higher Educational Facilities Authority Rev. (King Farm Presbyterian Community), “A”, 5.3%, 1/01/37 | 300,000 | 305,400 | ||||||
Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7%, 11/01/30 | 55,000 | 63,674 | ||||||
Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7.125%, 11/01/40 | 85,000 | 97,642 | ||||||
Westminster, MD, Refunding Rev. (Carroll Lutheran Village, Inc.), 5.125%, 7/01/40 | 400,000 | 416,940 | ||||||
$ | 2,122,623 | |||||||
Healthcare Revenue - Other - 0.8% | ||||||||
Maryland Economic Development Corp., Economic Development Rev. (Lutheran World Relief Refugee), 5.25%, 4/01/19 | $ | 115,000 | $ | 120,980 | ||||
Maryland Economic Development Corp., Economic Development Rev. (Lutheran World Relief Refugee), 5.25%, 4/01/29 | 565,000 | 580,775 | ||||||
$ | 701,755 | |||||||
Industrial Revenue - Other - 0.6% | ||||||||
Maryland Economic Development Corp., Pollution Control Rev. (CNX Marine Terminals, Inc.), 5.75%, 9/01/25 | $ | 500,000 | $ | 502,095 | ||||
Industrial Revenue - Paper - 0.1% | ||||||||
Valparaiso, IN, Exempt Facilities Rev. (Pratt Paper LLC Project), 7%, 1/01/44 | $ | 100,000 | $ | 121,845 | ||||
Miscellaneous Revenue - Other - 2.4% | ||||||||
Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/40 | $ | 105,000 | $ | 110,114 | ||||
Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/44 | 160,000 | 167,146 | ||||||
Montgomery County, MD, Transportation Fund Lease Authority Rev., “A”, 5%, 11/01/36 | 750,000 | 855,848 | ||||||
New York Liberty Development Corp., Liberty Rev. (3 World Trade Center Project), “1”, 5%, 11/15/44 | 455,000 | 459,559 | ||||||
New York, NY, Industrial Development Agency, Airport Facilities Rev. (Transportation Infrastructure Properties LLC), 5%, 7/01/28 | 450,000 | 482,814 | ||||||
$ | 2,075,481 | |||||||
Multi-Family Housing Revenue - 1.9% | ||||||||
Howard County, MD, Housing Commission Rev. (Columbia Commons Apartments), “A”, 5%, 6/01/44 | $ | 500,000 | $ | 536,300 |
Issuer | Shares/Par | Value ($) | ||||||
Multi-Family Housing Revenue - continued | ||||||||
Maryland Community Development Administration, Department of Housing & Community Development, “A”, 5.875%, 7/01/16 | $ | 40,000 | $ | 40,134 | ||||
Montgomery County, MD, Housing Opportunities Commission, Multifamily Rev., 5.125%, 7/01/37 | 1,000,000 | 1,064,220 | ||||||
$ | 1,640,654 | |||||||
Parking - 1.6% | ||||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Johns Hopkins Medical Institutions), AMBAC, 5%, 7/01/34 | $ | 1,385,000 | $ | 1,386,731 | ||||
Port Revenue - 0.7% | ||||||||
Maryland Economic Development Corp. Rev. (Port America Chesapeake Terminal Project), “B”, 5.75%, 6/01/35 | $ | 550,000 | $ | 587,692 | ||||
Sales & Excise Tax Revenue - 1.3% | ||||||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6%, 1/15/41 | $ | 435,000 | $ | 490,128 | ||||
Guam Government Business Privilege Tax Rev., “A”, 5.25%, 1/01/36 | 260,000 | 285,646 | ||||||
Guam Government Business Privilege Tax Rev., “C”, 5%, 11/15/16 | 80,000 | 83,716 | ||||||
Guam Government Business Privilege Tax Rev., “C”, 5%, 11/15/17 | 90,000 | 97,312 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “A”, 5.5%, 8/01/28 (Prerefunded 8/01/19) | 5,000 | 5,815 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “C”, 5.25%, 8/01/40 | 265,000 | 165,630 | ||||||
$ | 1,128,247 | |||||||
Single Family Housing - State - 3.0% | ||||||||
Maryland Community Development Administration, Department of Housing & Community Development, 5%, 9/01/34 | $ | 1,500,000 | $ | 1,544,655 | ||||
Montgomery County, MD, Housing Opportunities Commission (Single Family Mortgage Rev.), “B”, 4.55%, 7/01/26 | 1,000,000 | 1,003,030 | ||||||
$ | 2,547,685 | |||||||
State & Agency - Other - 3.5% | ||||||||
Howard County, MD, COP, “A”, 8%, 8/15/19 | $ | 805,000 | $ | 1,007,313 | ||||
Howard County, MD, COP, “B”, 8%, 8/15/19 | 385,000 | 481,758 | ||||||
Howard County, MD, COP, “B”, 8.15%, 2/15/21 | 450,000 | 604,629 | ||||||
Howard County, MD, COP, “C”, 8%, 8/15/19 | 680,000 | 850,898 | ||||||
$ | 2,944,598 | |||||||
State & Local Agencies - 3.4% | ||||||||
Delaware Valley, PA, Regional Finance Authority, “C”, FRN, 0.967%, 6/01/37 | $ | 665,000 | $ | 540,805 | ||||
FYI Properties Lease Rev. (Washington State Project), 5.5%, 6/01/34 | 370,000 | 417,105 |
30
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Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
State & Local Agencies - continued | ||||||||
Los Angeles, CA, Municipal Improvement Corp. Lease Rev. (Real Property), “E”, 6%, 9/01/39 | $ | 180,000 | $ | 207,916 | ||||
Maryland Department of Transportation, Port Administration Facilities Project, AMBAC, 5.25%, 6/15/20 | 1,690,000 | 1,745,888 | ||||||
$ | 2,911,714 | |||||||
Tax - Other - 2.1% | ||||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/24 | $ | 325,000 | $ | 360,506 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/29 | 45,000 | 49,856 | ||||||
Virgin Islands Public Finance Authority Rev., “B”, AGM, 5%, 10/01/25 | 210,000 | 237,054 | ||||||
Virgin Islands Public Finance Authority Rev., Matching Fund Loan Note, “A”, AGM, 5%, 10/01/25 | 210,000 | 239,742 | ||||||
Virgin Islands Public Finance Authority Rev., Matching Fund Loan Note, “A”, 5%, 10/01/29 | 520,000 | 564,205 | ||||||
Virgin Islands Public Finance Authority Rev., Matching Fund Loan Note, “A”, 6%, 10/01/39 | 285,000 | 310,508 | ||||||
$ | 1,761,871 | |||||||
Tax Assessment - 4.4% | ||||||||
Anne Arundel County, MD, Special Obligation (National Business Park-North Project), 6.1%, 7/01/40 | $ | 350,000 | $ | 370,510 | ||||
Anne Arundel County, MD, Special Obligation (VLG South Waugh Chapel Project), 6.25%, 7/01/40 | 300,000 | 317,601 | ||||||
Baltimore, MD, Special Obligation (East Baltimore Research Park Project), “A”, 7%, 9/01/38 | 400,000 | 428,060 | ||||||
Brunswick, MD, Special Obligation (Brunswick Crossing Special Taxing), 5.5%, 7/01/36 | 236,000 | 237,366 | ||||||
Frederick County, MD, Special Obligation (Urbana Community Development Authority), “A”, 5%, 7/01/40 | 1,500,000 | 1,646,790 | ||||||
Howard County, MD, Special Obligation (Annapolis Junction Town Center Project), 6.1%, 2/15/44 | 230,000 | 245,341 | ||||||
Prince George’s County, MD, Special Obligation (National Harbor Project), 5.2%, 7/01/34 | 500,000 | 500,335 | ||||||
$ | 3,746,003 | |||||||
Tobacco - 1.4% | ||||||||
Illinois Railsplitter Tobacco Settlement Authority, 6%, 6/01/28 | $ | 215,000 | $ | 253,904 | ||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.75%, 6/01/34 | 165,000 | 127,543 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 5%, 6/01/41 | 930,000 | 730,971 | ||||||
Virgin Islands Tobacco Settlement Financing Corp., 5%, 5/15/21 | 60,000 | 60,002 | ||||||
$ | 1,172,420 |
Issuer | Shares/Par | Value ($) | ||||||
Transportation - Special Tax - 4.1% | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., AGM, 5.25%, 7/01/33 | $ | 1,365,000 | $ | 1,305,650 | ||||
Maryland Department of Transportation, Consolidated Transportation Refunding Rev., 5%, 5/01/17 | 1,500,000 | 1,605,855 | ||||||
Washington, DC, Metropolitan Area Transit Authority Gross Rev., “A”, 5.125%, 7/01/32 | 485,000 | 546,644 | ||||||
$ | 3,458,149 | |||||||
Universities - Colleges - 6.7% | ||||||||
Annapolis, MD, Economic Development Rev. (St. John’s College), 5.5%, 10/01/18 | $ | 70,000 | $ | 70,312 | ||||
Maryland Health & Higher Educational Facilities Authority Rev. (Goucher College), “A”, 5%, 7/01/34 | 500,000 | 556,170 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Johns Hopkins University), “A”, 5%, 7/01/37 | 1,500,000 | 1,728,135 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Maryland Institute College of Art), 5%, 6/01/30 | 750,000 | 768,908 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Notre Dame College), 5%, 10/01/35 | 1,000,000 | 1,061,220 | ||||||
Morgan State University, Academic & Auxiliary Facilities Fees Rev., 5%, 7/01/30 | 150,000 | 168,696 | ||||||
Morgan State University, Academic & Auxiliary Facilities Fees Rev., 5%, 7/01/32 | 440,000 | 491,414 | ||||||
New Jersey Educational Facilities Authority Rev. (University of Medicine & Dentistry), “B”, ETM, 6%, 12/01/17 | 480,000 | 520,392 | ||||||
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 | 25,592 | ||||||
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 | 114,426 | ||||||
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 | 77,591 | ||||||
Virginia College Building Authority, Educational Facilities Rev. (Marymount University), “B”, 5.25%, 7/01/35 | 110,000 | 114,945 | ||||||
$ | 5,697,801 | |||||||
Universities - Dormitories - 3.8% | ||||||||
Maryland Economic Development Corp., Senior Student Housing Rev. (University of Maryland, Baltimore Project), 5%, 7/01/31 | $ | 500,000 | $ | 537,925 |
31
Table of Contents
Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Universities - Dormitories - continued | ||||||||
Maryland Economic Development Corp., Student Housing Rev. (Salisbury University Project), 5%, 6/01/27 | $ | 500,000 | $ | 539,615 | ||||
Maryland Economic Development Corp., Student Housing Rev. (Salisbury University Project), 5%, 6/01/30 | 300,000 | 318,477 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Loyola University Maryland), 5%, 10/01/32 | 500,000 | 577,955 | ||||||
University System of Maryland, Auxiliary Facility & Tuition Rev., “D”, 5%, 10/01/22 | 1,000,000 | 1,214,610 | ||||||
$ | 3,188,582 | |||||||
Universities - Secondary Schools - 0.4% | ||||||||
La Vernia, TX, Higher Education Finance Corp. Rev. (Lifeschool of Dallas), “A”, 7.5%, 8/15/41 (Prerefunded 8/15/19) | $ | 265,000 | $ | 327,344 | ||||
Utilities - Investor Owned - 1.2% | ||||||||
Maryland Economic Development Corp. Adjustable Mode Rev. Refunding (Constellation Energy Group, Inc. Project), “B”, 2.55%, 12/01/25 (Put Date 6/01/20) | $ | 750,000 | $ | 751,463 | ||||
Michigan Strategic Fund Ltd. Obligation Rev. (Detroit Edison Co.), 5.5%, 8/01/29 (Put Date 8/01/16) | 275,000 | 284,699 | ||||||
$ | 1,036,162 | |||||||
Utilities - Municipal Owned - 0.9% | ||||||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/24 | $ | 460,000 | $ | 544,806 | ||||
Long Island, NY, Power Authority, Electric Systems Rev., “A”, 6%, 5/01/33 | 185,000 | 212,817 | ||||||
$ | 757,623 | |||||||
Utilities - Other - 1.5% | ||||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/19 | $ | 400,000 | $ | 448,928 | ||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/21 | 195,000 | 222,374 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/22 | 100,000 | 115,041 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/23 | 140,000 | 161,948 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “C”, 5%, 2/01/21 | 235,000 | 262,056 | ||||||
Texas Gas Acquisition & Supply Corp III., Gas Supply Rev., 5%, 12/15/31 | 55,000 | 59,666 | ||||||
$ | 1,270,013 |
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - 10.4% | ||||||||
Baltimore, MD, Subordinate Refunding Rev. (Mayor and City Council of Baltimore Water Projects), “C”, 5%, 7/01/27 | $ | 1,015,000 | $ | 1,194,858 | ||||
Baltimore, MD, Refunding Rev. (Mayor and City Council of Baltimore Water Projects), “B”, 5%, 7/01/42 | 1,320,000 | 1,478,875 | ||||||
Baltimore, MD, Rev., LEVRRS, FRN, NATL, 10.854%, 7/01/20 (p) | 2,500,000 | 3,003,050 | ||||||
Baltimore, MD, Wastewater Rev. Project, “A”, NATL, 5.65%, 7/01/20 | 1,150,000 | 1,265,702 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), “A”, 5%, 7/01/29 | 205,000 | 227,755 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), “A”, 5%, 7/01/35 | 205,000 | 223,958 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “C-7”, NATL, 5%, 7/01/32 | 25,000 | 27,293 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “D-1”, AGM, 5%, 7/01/35 | 15,000 | 16,422 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “D-1”, AGM, 5%, 7/01/37 | 35,000 | 38,128 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “D-6”, NATL, 5%, 7/01/36 | 30,000 | 32,356 | ||||||
Mississippi Development Bank Special Obligation (City of Jackson Water and Sewer System Rev. Bond Project), AGM, 6.875%, 12/01/40 | 50,000 | 63,933 | ||||||
Montgomery County, MD, Water Quality Protection Charge Rev., “A”, 5%, 4/01/32 | 1,125,000 | 1,279,374 | ||||||
$ | 8,851,704 | |||||||
Total Municipal Bonds (Identified Cost, $78,322,264) | $ | 83,236,350 | ||||||
Money Market Funds - 0.9% | ||||||||
MFS Institutional Money Market Portfolio, 0.12%, at Cost and Net Asset Value (v) | 763,306 | $ | 763,306 | |||||
Total Investments (Identified Cost, $79,085,570) | $ | 83,999,656 | ||||||
Other Assets, Less Liabilities - 1.2% | 990,849 | |||||||
Net Assets - 100.0% | $ | 84,990,505 |
32
Table of Contents
Portfolio of Investments (unaudited) – continued
Derivative Contracts at 9/30/15
Futures Contracts at 9/30/15
Description | Currency | Contracts | Value | Expiration Date | Unrealized Appreciation (Depreciation) | |||||||||||||
Liability Derivatives | ||||||||||||||||||
Interest Rate Futures | ||||||||||||||||||
U.S. Treasury Note 10 yr (Short) | USD | 14 | $1,802,281 | December - 2015 | $(15,580 | ) | ||||||||||||
|
|
At September 30, 2015, the fund had cash collateral of $18,900 to cover any commitments for certain derivative contracts. Cash collateral is comprised of “Deposits with brokers” in the Statements of Assets and Liabilities.
See Portfolio Footnotes and Notes to Financial Statements
33
Table of Contents
PORTFOLIO OF INVESTMENTS
9/30/15 (unaudited)
MFS MASSACHUSETTS MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
Municipal Bonds - 98.2% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 0.4% | ||||||||
Massachusetts Port Authority Rev., “A”, 5%, 7/01/27 | $ | 300,000 | $ | 363,390 | ||||
Massachusetts Port Authority Rev., “A”, 5%, 7/01/28 | 400,000 | 482,984 | ||||||
$ | 846,374 | |||||||
General Obligations - General Purpose - 9.5% | ||||||||
Boston, MA, “B”, 4%, 4/01/21 | $ | 1,870,000 | $ | 2,124,563 | ||||
Commonwealth of Massachusetts, “B”, 5.25%, 8/01/23 | 1,000,000 | 1,242,130 | ||||||
Commonwealth of Massachusetts, “B”, 5.25%, 8/01/28 | 2,225,000 | 2,867,981 | ||||||
Commonwealth of Massachusetts, “C”, NATL, 5.5%, 12/01/19 | 4,000,000 | 4,705,680 | ||||||
Commonwealth of Massachusetts, “C”, AMBAC, 5%, 8/01/32 | 4,815,000 | 5,200,585 | ||||||
Commonwealth of Puerto Rico, “A”, NATL, 5.5%, 7/01/20 | 610,000 | 606,249 | ||||||
Guam Government, “A”, 5.25%, 11/15/37 | 395,000 | 431,786 | ||||||
Guam Government, “A”, 6.75%, 11/15/29 | 685,000 | 839,098 | ||||||
Guam Government, “A”, 7%, 11/15/39 | 75,000 | 92,591 | ||||||
Puerto Rico Public Buildings Authority Rev., “H”, AMBAC, 5.5%, 7/01/17 | 740,000 | 735,064 | ||||||
Puerto Rico Public Buildings Authority Rev., “H”, AMBAC, 5.5%, 7/01/18 | 535,000 | 528,248 | ||||||
State of California, 6%, 11/01/39 | 1,555,000 | 1,851,741 | ||||||
$ | 21,225,716 | |||||||
General Obligations - Schools - 0.5% | ||||||||
San Marcos, CA, Unified School District (Election of 2010), Capital Appreciation, “C”, 0%, 8/01/38 | $ | 3,375,000 | $ | 1,109,025 | ||||
Healthcare Revenue - Hospitals - 13.3% | ||||||||
Escambia County, FL, Health Facilities Authority (Baptist Hospital, Inc.), “A”, 6%, 8/15/36 | $ | 1,315,000 | $ | 1,488,804 | ||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.25%, 7/01/31 | 235,000 | 269,054 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.375%, 7/01/41 | 345,000 | 390,799 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6.375%, 6/01/40 | 745,000 | 842,796 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6.5%, 3/01/45 | 520,000 | 588,791 | ||||||
Louisville & Jefferson County, KY, Metropolitan Government Healthcare Systems Rev. (Norton Healthcare, Inc.), 5.25%, 10/01/36 | 1,180,000 | 1,210,043 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Massachusetts Development Finance Agency Rev. (Baystate Medical Center), “N”, 5%, 7/01/44 | $ | 2,000,000 | $ | 2,194,340 | ||||
Massachusetts Development Finance Agency Rev. (Children’s Hospital), “P”, 5%, 10/01/32 | 1,000,000 | 1,148,260 | ||||||
Massachusetts Development Finance Agency Rev. (Milford Regional Medical Center), “F”, 5.75%, 7/15/43 | 1,000,000 | 1,090,920 | ||||||
Massachusetts Development Finance Agency Rev. (Partners Healthcare System), 5%, 7/01/32 (Prerefunded 7/01/17) | 1,050,000 | 1,130,619 | ||||||
Massachusetts Development Finance Agency Rev. (Partners Healthcare System), 5%, 7/01/32 | 950,000 | 1,009,594 | ||||||
Massachusetts Development Finance Agency Rev. (Tufts Medical Center), “I”, 7.25%, 1/01/32 | 1,000,000 | 1,206,680 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Bay State Medical Center), “I”, 5.75%, 7/01/36 | 500,000 | 562,620 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Caregroup, Inc.), 5.125%, 7/01/38 | 2,000,000 | 2,120,100 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Children’s Hospital), “M”, 5.25%, 12/01/39 | 1,500,000 | 1,688,805 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Children’s Hospital), “M”, 5.5%, 12/01/39 | 1,000,000 | 1,135,800 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Dana Faber Cancer Institute), “K”, 5%, 12/01/37 | 2,000,000 | 2,182,040 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Jordan Hospital), “D”, 5.25%, 10/01/18 | 815,000 | 815,228 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Lahey Clinic), “D”, 5.25%, 8/15/37 | 1,550,000 | 1,629,593 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Partners Healthcare System), “J-1”, 5%, 7/01/39 | 2,000,000 | 2,227,360 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Partners Healthcare System), “J1”, 5%, 7/01/34 | 1,375,000 | 1,539,794 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (South Shore), 5.625%, 7/01/19 | 280,000 | 281,173 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Southcoast Health Obligation), “D”, 5%, 7/01/29 | 1,000,000 | 1,088,610 | ||||||
Miami-Dade County, FL, Health Facilities Authority Hospital Rev. (Variety Children’s Hospital), “A”, 6%, 8/01/30 | 430,000 | 497,501 |
34
Table of Contents
Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6.125%, 10/01/39 | $ | 655,000 | $ | 723,592 | ||||
New Hampshire Business Finance Authority Rev. (Huggins Hospital), 6.875%, 10/01/39 | 30,000 | 32,119 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 6.75%, 7/01/29 (Prerefunded 7/01/19) | 165,000 | 198,974 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 7%, 7/01/39 (Prerefunded 7/01/19) | 395,000 | 479,949 | ||||||
$ | 29,773,958 | |||||||
Healthcare Revenue - Long Term Care - 2.0% | ||||||||
Massachusetts Development Finance Agency First Mortgage Rev. (Berkshire Retirement Community), 5%, 7/01/31 | $ | 1,000,000 | $ | 1,113,360 | ||||
Massachusetts Development Finance Agency Rev. (Adventcare), “A”, 6.75%, 10/15/37 | 500,000 | 517,210 | ||||||
Massachusetts Development Finance Agency Rev. (Carleton-Willard Village), 5.625%, 12/01/30 | 525,000 | 588,672 | ||||||
Massachusetts Development Finance Agency Rev. (Linden Ponds, Inc.), “A-1”, 6.25%, 11/15/39 | 352,582 | 337,347 | ||||||
Massachusetts Development Finance Agency Rev. (Linden Ponds, Inc.), “A-2”, 5.5%, 11/15/46 | 18,820 | 16,075 | ||||||
Massachusetts Development Finance Agency Rev. (Linden Ponds, Inc.), Capital Appreciation, “B”, 0%, 11/15/56 | 93,608 | 543 | ||||||
Massachusetts Development Finance Agency Rev. (Loomis Communities), “A”, 6%, 1/01/33 | 500,000 | 557,055 | ||||||
Massachusetts Development Finance Agency Rev. (North Hill Communities), “A”, 6.5%, 11/15/43 | 1,000,000 | 1,082,430 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), “A”, 7.25%, 9/15/29 | 20,000 | 23,535 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), “A”, 7.625%, 9/15/39 | 130,000 | 153,715 | ||||||
$ | 4,389,942 | |||||||
Human Services - 0.5% | ||||||||
Massachusetts Development Finance Agency Rev. (Evergreen Center, Inc.), 5.5%, 1/01/35 | $ | 1,200,000 | $ | 1,200,780 | ||||
Industrial Revenue - Environmental Services - 0.7% | ||||||||
Massachusetts Development Finance Agency, Resource Recovery Rev. (Covanta Energy Project), “C”, 5.25%, 11/01/42 | $ | 1,535,000 | $ | 1,538,531 | ||||
Miscellaneous Revenue - Other - 9.3% | ||||||||
Martha’s Vineyard, MA, Land Bank Rev., BAM, 5%, 5/01/31 | $ | 400,000 | $ | 459,428 | ||||
Massachusetts Development Finance Agency Rev., 5.5%, 9/01/20 | 1,205,000 | 1,366,699 |
Issuer | Shares/Par | Value ($) | ||||||
Miscellaneous Revenue - Other - continued | ||||||||
Massachusetts Development Finance Agency Rev. (The Broad Institute, Inc.), “A”, 5.25%, 4/01/37 | $ | 2,000,000 | $ | 2,292,360 | ||||
Massachusetts Health & Educational Facilities Authority Rev., 5.5%, 6/01/34 | 1,500,000 | 1,646,295 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (The Sterling & Francine Clark Art Institute), “B”, 5%, 7/01/30 | 3,500,000 | 3,979,675 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (The Sterling & Francine Clark Art Institute), “B”, 5%, 7/01/40 | 1,700,000 | 1,916,529 | ||||||
Massachusetts Port Authority Facilities Rev. (Boston Fuel Project), FGIC, 5%, 7/01/24 | 2,000,000 | 2,112,500 | ||||||
Massachusetts Port Authority Special Facilities Rev. (Conrac Project), “A”, 5.125%, 7/01/41 | 3,000,000 | 3,274,740 | ||||||
New York Liberty Development Corp., Liberty Rev. (3 World Trade Center Project), “1”, 5%, 11/15/44 | 1,190,000 | 1,201,924 | ||||||
New York Liberty Development Corp., Liberty Rev. (7 World Trade Center Project), 5%, 9/15/40 | 2,185,000 | 2,503,289 | ||||||
$ | 20,753,439 | |||||||
Multi-Family Housing Revenue - 4.5% | ||||||||
Massachusetts Development Finance Agency Rev. (Credit Housing-Chelsea Homes), “I-A”, LOC, 5%, 12/15/24 | $ | 1,185,000 | $ | 1,189,408 | ||||
Massachusetts Development Finance Agency Rev. (Morville House Apartments), “A”, LOC, 4.95%, 12/15/23 | 2,500,000 | 2,503,775 | ||||||
Massachusetts Housing Finance Agency Rev., “A”, FHA, 5.25%, 12/01/35 | 1,000,000 | 1,069,840 | ||||||
Massachusetts Housing Finance Agency Rev., “C”, 5.35%, 12/01/49 | 1,680,000 | 1,748,662 | ||||||
Massachusetts Housing Finance Agency, “B”, 5.25%, 12/01/30 | 685,000 | 717,832 | ||||||
Massachusetts Housing Finance Agency, Multi-Family Housing, “A”, FHA, 4.75%, 12/01/30 | 1,425,000 | 1,528,697 | ||||||
Massachusetts Housing Finance Agency, Multi-Family Housing, “A”, FHA, 4.875%, 12/01/32 | 1,190,000 | 1,269,016 | ||||||
$ | 10,027,230 | |||||||
Parking - 1.6% | ||||||||
Boston, MA, Metropolitan Transit Parking Corp., Systemwide Parking Rev., 5.25%, 7/01/36 | $ | 3,000,000 | $ | 3,460,500 | ||||
Sales & Excise Tax Revenue - 5.9% | ||||||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6%, 1/15/41 | $ | 985,000 | $ | 1,109,829 | ||||
Massachusetts Bay Transportation Authority, Sales Tax Rev., “A”, 5%, 7/01/24 | 1,590,000 | 1,958,308 | ||||||
Massachusetts Bay Transportation Authority, Sales Tax Rev., “A-1”, 5.25%, 7/01/29 | 1,850,000 | 2,369,203 |
35
Table of Contents
Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Sales & Excise Tax Revenue - continued | ||||||||
Massachusetts Bay Transportation Authority, Sales Tax Rev., “A-1”, 5.25%, 7/01/31 | $ | 2,000,000 | $ | 2,544,140 | ||||
Massachusetts Bay Transportation Authority, Sales Tax Rev., Capital Appreciation, 0%, 7/01/34 | 4,000,000 | 1,699,000 | ||||||
Massachusetts School Building Authority, Dedicated Sales Tax Rev., AMBAC, 4.75%, 8/15/32 | 2,000,000 | 2,115,660 | ||||||
Massachusetts School Building Authority, Dedicated Sales Tax Rev., “A”, AMBAC, 4.5%, 8/15/35 | 950,000 | 996,056 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “A”, 5.5%, 8/01/28 (Prerefunded 8/01/19) | 10,000 | 11,630 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “C”, 5.25%, 8/01/40 | 680,000 | 425,014 | ||||||
$ | 13,228,840 | |||||||
Single Family Housing - State - 1.5% | ||||||||
Massachusetts Housing Finance Agency, Single Family Housing Rev., “157”, 4.35%, 12/01/27 | $ | 235,000 | $ | 245,789 | ||||
Massachusetts Housing Finance Agency, Single Family Housing Rev., “177”, 4%, 6/01/39 | 3,000,000 | 3,210,870 | ||||||
$ | 3,456,659 | |||||||
State & Local Agencies - 5.1% | ||||||||
Delaware Valley, PA, Regional Finance Authority, “C”, FRN, 0.967%, 6/01/37 | $ | 1,400,000 | $ | 1,138,536 | ||||
Massachusetts College Building Authority Project Rev., Capital Appreciation, “A”, SYNCORA, 0%, 5/01/22 | 8,310,000 | 7,209,091 | ||||||
Massachusetts College Building Authority Rev., “A”, 5%, 5/01/31 | 275,000 | 318,324 | ||||||
Massachusetts State College, Building Authority Project Rev., “A”, 5%, 5/01/32 | 760,000 | 875,786 | ||||||
Massachusetts State College, Building Authority Project Rev., “A”, 5.5%, 5/01/49 | 1,680,000 | 1,879,819 | ||||||
$ | 11,421,556 | |||||||
Student Loan Revenue - 5.5% | ||||||||
Massachusetts Educational Financing Authority, “J”, 5.625%, 7/01/29 | $ | 1,595,000 | $ | 1,763,129 | ||||
Massachusetts Educational Financing Authority, Education Loan Rev, “A”, 4.25%, 1/01/31 | 2,000,000 | 2,019,420 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “H”, ASSD GTY, 6.35%, 1/01/30 | 1,165,000 | 1,227,223 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “I”, 6%, 1/01/28 | 790,000 | 835,109 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “I-A”, 5.5%, 1/01/22 | 3,000,000 | 3,391,890 |
Issuer | Shares/Par | Value ($) | ||||||
Student Loan Revenue - continued | ||||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “I-A”, 5.15%, 1/01/26 | $ | 1,100,000 | $ | 1,128,215 | ||||
Massachusetts Educational Financing Authority, Education Loan Rev., “I-A”, 5.2%, 1/01/27 | 520,000 | 533,952 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “Issue E”, AMBAC, 5.3%, 1/01/16 | 45,000 | 45,184 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “K”, 4.5%, 7/01/24 | 1,350,000 | 1,426,532 | ||||||
$ | 12,370,654 | |||||||
Tax - Other - 1.9% | ||||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/24 | $ | 260,000 | $ | 288,405 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/29 | 85,000 | 94,172 | ||||||
Massachusetts Special Obligation Dedicated Tax Rev., NATL, 5.5%, 1/01/23 | 1,585,000 | 1,940,959 | ||||||
Virgin Islands Public Finance Authority Rev. (Diageo), “A”, 6.625%, 10/01/29 | 600,000 | 671,130 | ||||||
Virgin Islands Public Finance Authority Rev., “B”, AGM, 5%, 10/01/25 | 545,000 | 615,212 | ||||||
Virgin Islands Public Finance Authority Rev., Matching Fund Loan Note, “A”, AGM, 5%, 10/01/25 | 540,000 | 616,480 | ||||||
$ | 4,226,358 | |||||||
Tobacco - 1.4% | ||||||||
Children’s Trust Fund, Tobacco Settlement Rev., Puerto Rico, 5.5%, 5/15/39 | $ | 400,000 | $ | 400,004 | ||||
Illinois Railsplitter Tobacco Settlement Authority, 6%, 6/01/28 | 1,335,000 | 1,576,568 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.75%, 6/01/34 | 330,000 | 255,087 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 5%, 6/01/41 | 1,230,000 | 966,768 | ||||||
$ | 3,198,427 | |||||||
Toll Roads - 1.3% | ||||||||
Massachusetts Department of Transportation, Metropolitan Highway System Rev., “B”, 5%, 1/01/32 | $ | 2,600,000 | $ | 2,916,394 | ||||
Transportation - Special Tax - 0.1% | ||||||||
Massachusetts Bay Transportation Authority, Sales Tax Rev., ETM, “C”, 5.5%, 7/01/16 | $ | 200,000 | $ | 207,922 | ||||
Universities - Colleges - 22.0% | ||||||||
Illinois Finance Authority Rev. (Roosevelt University Project), 6.25%, 4/01/29 | $ | 2,005,000 | $ | 2,187,375 | ||||
Massachusetts Development Finance Agency Higher Education Rev. (Emerson College), “A”, 5%, 1/01/23 | 1,750,000 | 1,848,893 | ||||||
Massachusetts Development Finance Agency Rev. (Babson College), “A”, 5%, 10/01/26 | 500,000 | 603,630 |
36
Table of Contents
Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
Massachusetts Development Finance Agency Rev. (Boston College), “R-1”, 5%, 7/01/24 | $ | 3,950,000 | $ | 4,568,096 | ||||
Massachusetts Development Finance Agency Rev. (Boston University), “V-1”, 5%, 10/01/29 | 2,165,000 | 2,438,093 | ||||||
Massachusetts Development Finance Agency Rev. (Emerson College), 5%, 1/01/28 | 2,000,000 | 2,221,900 | ||||||
Massachusetts Development Finance Agency Rev. (New England Conservatory of Music), 5.25%, 7/01/38 | 2,000,000 | 2,240,060 | ||||||
Massachusetts Development Finance Agency Rev. (Simmons College), SYNCORA, 5.25%, 10/01/26 | 2,250,000 | 2,606,445 | ||||||
Massachusetts Development Finance Agency Rev. (Suffolk University), 5.125%, 7/01/40 | 1,000,000 | 1,051,730 | ||||||
Massachusetts Development Finance Agency Rev. (Wheelock College), “C”, 5.25%, 10/01/37 | 1,500,000 | 1,585,605 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Berklee College of Music), “A”, 5%, 10/01/27 | 905,000 | 968,920 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Berklee College of Music), “A”, 5%, 10/01/37 | 2,000,000 | 2,138,940 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Boston College), 5.5%, 6/01/27 | 1,735,000 | 2,243,667 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Harvard University), 5.5%, 11/15/36 | 1,500,000 | 1,708,470 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Lesley University), “A”, ASSD GTY, 5.25%, 7/01/39 | 1,000,000 | 1,113,080 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Massachusetts Institute of Technology) “M”, 5.25%, 7/01/21 | 2,000,000 | 2,419,280 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Massachusetts Institute of Technology), “A”, 5%, 7/01/38 | 750,000 | 807,308 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Massachusetts Institute of Technology), “I-1”, 5.2%, 1/01/28 | 1,000,000 | 1,300,620 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Northeastern University), “A”, 5%, 10/01/35 | 1,500,000 | 1,690,155 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Stonehill College), MSQLF, 4.875%, 7/01/27 | 250,000 | 278,685 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Stonehill College), 5%, 7/01/28 | 640,000 | 715,584 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Stonehill College), 5%, 7/01/29 | 300,000 | 334,677 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Suffolk University), “A”, 6.25%, 7/01/30 | 2,000,000 | 2,303,440 |
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
Massachusetts State College, Building Authority Project Rev., “A”, 5%, 5/01/29 | $ | 2,000,000 | $ | 2,307,540 | ||||
Pinellas County, FL, Educational Facilities Authority Rev. (Barry University), 6%, 10/01/41 | 295,000 | 329,373 | ||||||
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 | 93,836 | ||||||
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 | 313,612 | ||||||
Puerto Rico Industrial, Tourist, Medical, & Environmental Central Facilities (University of Sacred Heart), 4.375%, 10/01/31 | 75,000 | 54,992 | ||||||
Puerto Rico Industrial, Tourist, Medical, & Environmental Central Facilities (University of Sacred Heart), 5%, 10/01/42 | 35,000 | 25,592 | ||||||
University of Massachusetts Building Authority Project Rev., “1”, 5%, 11/01/39 | 3,000,000 | 3,356,010 | ||||||
University of Massachusetts Building Authority Project Rev., “1”, 5%, 11/01/19 | 3,000,000 | 3,452,280 | ||||||
$ | 49,307,888 | |||||||
Universities - Secondary Schools - 5.5% | ||||||||
La Vernia, TX, Higher Education Finance Corp. Rev. (Lifeschool of Dallas), “A”, 7.5%, 8/15/41 (Prerefunded 8/15/19) | $ | 665,000 | $ | 821,448 | ||||
Massachusetts Development Finance Agency Rev. (Belmont Hill School), 4.375%, 9/01/31 (Prerefunded 9/01/17) | 1,080,000 | 1,155,665 | ||||||
Massachusetts Development Finance Agency Rev. (Belmont Hill School), 4.5%, 9/01/36 (Prerefunded 9/01/17) | 1,000,000 | 1,072,440 | ||||||
Massachusetts Development Finance Agency Rev. (Dexter Southfield), 5%, 5/01/31 | 1,015,000 | 1,131,055 | ||||||
Massachusetts Development Finance Agency Rev. (Dexter Southfield), 5%, 5/01/30 | 500,000 | 559,320 | ||||||
Massachusetts Development Finance Agency Rev. (Dexter Southfield), 4.75%, 5/01/32 (Prerefunded 5/01/17) | 995,000 | 1,060,362 | ||||||
Massachusetts Development Finance Agency Rev. (Dexter Southfield), 4.75%, 5/01/32 | 135,000 | 137,348 | ||||||
Massachusetts Development Finance Agency Rev. (Dexter Southfield), 5%, 5/01/37 (Prerefunded 5/01/17) | 1,760,000 | 1,882,549 | ||||||
Massachusetts Development Finance Agency Rev. (Dexter Southfield), 5%, 5/01/37 | 240,000 | 244,718 | ||||||
Massachusetts Development Finance Agency Rev. (Foxborough Regional Charter School), “A”, 6.375%, 7/01/30 | 905,000 | 999,600 | ||||||
Massachusetts Development Finance Agency Rev. (Milton Academy), “A”, 5%, 9/01/28 | 1,000,000 | 1,151,680 |
37
Table of Contents
Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Universities - Secondary Schools - continued | ||||||||
Massachusetts Development Finance Agency Rev. (Sabis International Charter School Issue), 5%, 4/15/33 | $ | 2,000,000 | $ | 2,137,500 | ||||
$ | 12,353,685 | |||||||
Utilities - Investor Owned - 0.5% | ||||||||
Massachusetts Development Finance Agency, Solid Waste Disposal Rev. (Dominion Energy Brayton), 5.75%, 12/01/42 (Prerefunded 5/01/19) | $ | 1,000,000 | $ | 1,166,020 | ||||
Utilities - Municipal Owned - 0.5% | ||||||||
Guam Power Authority Rev., “A”, 5.5%, 10/01/30 | $ | 590,000 | $ | 657,177 | ||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/39 | 200,000 | 227,464 | ||||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/44 | 235,000 | 265,700 | ||||||
$ | 1,150,341 | |||||||
Utilities - Other - 1.0% | ||||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/19 | $ | 805,000 | $ | 903,460 | ||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/21 | 405,000 | 461,854 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/22 | 210,000 | 241,586 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “C”, 5%, 2/01/21 | 480,000 | 535,262 | ||||||
Texas Gas Acquisition & Supply Corp III., Gas Supply Rev., 5%, 12/15/31 | 160,000 | 173,573 | ||||||
$ | 2,315,735 |
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - 3.7% | ||||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5.625%, 7/01/40 | $ | 305,000 | $ | 333,694 | ||||
Massachusetts Water Pollution Abatement Trust, 5.25%, 8/01/27 | 1,280,000 | 1,653,133 | ||||||
Massachusetts Water Pollution Abatement Trust, 5.25%, 8/01/33 | 2,000,000 | 2,576,060 | ||||||
Massachusetts Water Pollution Abatement Trust (MWRA Program), “A”, 5%, 8/01/32 | 75,000 | 75,275 | ||||||
Massachusetts Water Resources Authority, General Rev., “B”, 5.25%, 8/01/30 | 620,000 | 792,038 | ||||||
Massachusetts Water Resources Authority, “B”, AGM, 5.25%, 8/01/29 | 595,000 | 758,881 | ||||||
Massachusetts Water Resources Authority, General Rev., “B”, AGM, 5.25%, 8/01/31 | 1,625,000 | 2,076,019 | ||||||
$ | 8,265,100 | |||||||
Total Municipal Bonds (Identified Cost, $198,820,615) | $ | 219,911,074 | ||||||
Money Market Funds - 0.4% | ||||||||
MFS Institutional Money Market Portfolio, 0.12%, at Cost and Net Asset Value (v) | 798,357 | $ | 798,357 | |||||
Total Investments (Identified Cost, $199,618,972) | $ | 220,709,431 | ||||||
Other Assets, Less Liabilities - 1.4% | 3,231,347 | |||||||
Net Assets - 100.0% | $ | 223,940,778 |
Derivative Contracts at 9/30/15
Futures Contracts at 9/30/15
Description | Currency | Contracts | Value | Expiration Date | Unrealized Appreciation (Depreciation) | |||||||||||||
Liability Derivatives | ||||||||||||||||||
Interest Rate Futures | ||||||||||||||||||
U.S. Treasury Note 10 yr (Short) | USD | 38 | $4,891,906 | December - 2015 | $(42,289 | ) | ||||||||||||
|
|
At September 30, 2015, the fund had cash collateral of $51,300 to cover any commitments for certain derivative contracts. Cash collateral is comprised of “Deposits with brokers” in the Statements of Assets and Liabilities.
See Portfolio Footnotes and Notes to Financial Statements
38
Table of Contents
Portfolio of Investments (unaudited) – continued
Portfolio Footnotes:
(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 $465,906, representing 0.2% 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. |
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 the current rate 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. | |||||
BAM | Build America Mutual | |||||
BHAC | Berkshire Hathaway Assurance Corp. | |||||
CALHF | California Health Facility Construction Loan Insurance Program | |||||
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. |
See Notes to Financial Statements
39
Table of Contents
Financial Statements
STATEMENTS OF ASSETS AND LIABILITIES
At 9/30/15 (unaudited)
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 | $47,325,050 | $156,244,905 | $262,041,051 | |||||||||
Underlying affiliated funds, at cost and net asset value | 863,951 | 139,679 | 4,480,124 | |||||||||
Total investments, at identified cost | $48,189,001 | $156,384,584 | $266,521,175 | |||||||||
Unrealized appreciation (depreciation) | 3,636,415 | 7,653,307 | 23,367,318 | |||||||||
Total investments, at value | $51,825,416 | $164,037,891 | $289,888,493 | |||||||||
Deposits with brokers | — | — | 63,450 | |||||||||
Receivables for | ||||||||||||
Daily variation margin on open futures contracts | — | — | 3,672 | |||||||||
Investments sold | 30,000 | 20,243 | 111,513 | |||||||||
Fund shares sold | — | 623 | 260,428 | |||||||||
Interest | 607,871 | 2,169,694 | 3,569,547 | |||||||||
Receivable from investment adviser | 4,913 | — | — | |||||||||
Other assets | 69 | 158 | 235 | |||||||||
Total assets | $52,468,269 | $166,228,609 | $293,897,338 | |||||||||
Liabilities | ||||||||||||
Payables for | ||||||||||||
Distributions | $23,932 | $39,875 | $150,407 | |||||||||
Investments purchased | — | — | 2,343,387 | |||||||||
Fund shares reacquired | 43,197 | 218,458 | 483,865 | |||||||||
Payable to affiliates | ||||||||||||
Investment adviser | — | 3,216 | 5,606 | |||||||||
Shareholder servicing costs | 25,853 | 92,817 | 138,025 | |||||||||
Distribution and service fees | 596 | 2,944 | 3,694 | |||||||||
Payable for independent Trustees’ compensation | 2,811 | 2,685 | 8,767 | |||||||||
Accrued expenses and other liabilities | 31,796 | 41,386 | 40,204 | |||||||||
Total liabilities | $128,185 | $401,381 | $3,173,955 | |||||||||
Net assets | $52,340,084 | $165,827,228 | $290,723,383 | |||||||||
Net assets consist of | ||||||||||||
Paid-in capital | $50,137,111 | $163,127,727 | $277,849,333 | |||||||||
Unrealized appreciation (depreciation) on investments | 3,636,415 | 7,653,307 | 23,315,013 | |||||||||
Accumulated net realized gain (loss) on investments | (1,526,045 | ) | (5,278,926 | ) | (10,790,386 | ) | ||||||
Undistributed net investment income | 92,603 | 325,120 | 349,423 | |||||||||
Net assets | $52,340,084 | $165,827,228 | $290,723,383 |
40
Table of Contents
Statements of Assets and Liabilities (unaudited) – continued
Alabama Fund | Arkansas Fund | California Fund | ||||||||||
Net Assets | ||||||||||||
Class A | $51,661,584 | $159,114,076 | $257,333,848 | |||||||||
Class B | 678,500 | 6,713,152 | 2,872,282 | |||||||||
Class C | — | — | 30,517,253 | |||||||||
Total net assets | $52,340,084 | $165,827,228 | $290,723,383 | |||||||||
Shares of beneficial interest outstanding | ||||||||||||
Class A | 4,983,789 | 15,991,147 | 42,945,651 | |||||||||
Class B | 65,441 | 674,047 | 479,210 | |||||||||
Class C | — | — | 5,075,491 | |||||||||
Total shares of beneficial interest outstanding | 5,049,230 | 16,665,194 | 48,500,352 | |||||||||
Class A shares | ||||||||||||
Net asset value per share | ||||||||||||
(net assets / shares of beneficial interest outstanding) | $10.37 | $9.95 | $5.99 | |||||||||
Offering price per share (100 / 95.75 x net asset value per share) | $10.83 | $10.39 | $6.26 | |||||||||
Class B shares | ||||||||||||
Net asset value and offering price per share | ||||||||||||
(net assets / shares of beneficial interest outstanding) | $10.37 | $9.96 | $5.99 | |||||||||
Class C shares | ||||||||||||
Net asset value and offering price per share | ||||||||||||
(net assets / shares of beneficial interest outstanding) | $— | $— | $6.01 |
On sales of $100,000 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
41
Table of Contents
Statements of Assets and Liabilities (unaudited) – continued
At 9/30/15 | Georgia Fund | Maryland Fund | Massachusetts Fund | |||||||||
Assets | ||||||||||||
Investments | ||||||||||||
Non-affiliated issuers, at identified cost | $53,139,486 | $78,322,264 | $198,820,615 | |||||||||
Underlying affiliated funds, at cost and net asset value | 1,453,747 | 763,306 | 798,357 | |||||||||
Total investments, at identified cost | $54,593,233 | $79,085,570 | $199,618,972 | |||||||||
Unrealized appreciation (depreciation) | 3,985,659 | 4,914,086 | 21,090,459 | |||||||||
Total investments, at value | $58,578,892 | $83,999,656 | $220,709,431 | |||||||||
Cash | — | 1,017 | — | |||||||||
Deposits with brokers | — | 18,900 | 51,300 | |||||||||
Receivables for | ||||||||||||
Daily variation margin on open futures contracts | — | 1,094 | 2,969 | |||||||||
Investments sold | — | 20,000 | 847,900 | |||||||||
Fund shares sold | 5,811 | 66,557 | 29,195 | |||||||||
Interest | 721,429 | 1,083,252 | 2,896,671 | |||||||||
Receivable from investment adviser | 3,419 | 9,375 | — | |||||||||
Receivable from distributor | — | — | 7,325 | |||||||||
Other assets | 73 | 93 | 185 | |||||||||
Total assets | $59,309,624 | $85,199,944 | $224,544,976 | |||||||||
Liabilities | ||||||||||||
Payables for | ||||||||||||
Distributions | $22,259 | $48,885 | $106,781 | |||||||||
Fund shares reacquired | 81,397 | 85,868 | 335,911 | |||||||||
Payable to affiliates | ||||||||||||
Investment adviser | — | — | 4,331 | |||||||||
Shareholder servicing costs | 27,268 | 37,692 | 107,851 | |||||||||
Distribution and service fees | 785 | 787 | — | |||||||||
Payable for independent Trustees’ compensation | 3,192 | 5,650 | 5,672 | |||||||||
Accrued expenses and other liabilities | 32,442 | 30,557 | 43,652 | |||||||||
Total liabilities | $167,343 | $209,439 | $604,198 | |||||||||
Net assets | $59,142,281 | $84,990,505 | $223,940,778 | |||||||||
Net assets consist of | ||||||||||||
Paid-in capital | $56,889,027 | $82,868,374 | $209,260,106 | |||||||||
Unrealized appreciation (depreciation) on investments | 3,985,659 | 4,898,506 | 21,048,170 | |||||||||
Accumulated net realized gain (loss) on investments | (1,772,378 | ) | (3,023,061 | ) | (6,554,595 | ) | ||||||
Undistributed net investment income | 39,973 | 246,686 | 187,097 | |||||||||
Net assets | $59,142,281 | $84,990,505 | $223,940,778 |
42
Table of Contents
Statements of Assets and Liabilities (unaudited) – continued
Georgia Fund | Maryland Fund | Massachusetts Fund | ||||||||||
Net Assets | ||||||||||||
Class A | $57,789,098 | $82,851,853 | $220,696,132 | |||||||||
Class B | 1,353,183 | 2,138,652 | 3,244,646 | |||||||||
Total net assets | $59,142,281 | $84,990,505 | $223,940,778 | |||||||||
Shares of beneficial interest outstanding | ||||||||||||
Class A | 5,308,510 | 7,550,925 | 19,572,112 | |||||||||
Class B | 123,844 | 194,999 | 287,231 | |||||||||
Total shares of beneficial interest outstanding | 5,432,354 | 7,745,924 | 19,859,343 | |||||||||
Class A shares | ||||||||||||
Net asset value per share | ||||||||||||
(net assets / shares of beneficial interest outstanding) | $10.89 | $10.97 | $11.28 | |||||||||
Offering price per share (100 / 95.75 x net asset value per share) | $11.37 | $11.46 | $11.78 | |||||||||
Class B shares | ||||||||||||
Net asset value and offering price per share | ||||||||||||
(net assets / shares of beneficial interest outstanding) | $10.93 | $10.97 | $11.30 |
On sales of $100,000 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
43
Table of Contents
Financial Statements
Six months ended 9/30/15 (unaudited)
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 | $1,174,650 | $3,479,696 | $6,643,430 | |||||||||
Dividends from underlying affiliated funds | 379 | 1,102 | 3,577 | |||||||||
Total investment income | $1,175,029 | $3,480,798 | $6,647,007 | |||||||||
Expenses | ||||||||||||
Management fee | $118,573 | $383,073 | $647,100 | |||||||||
Distribution and service fees | 68,526 | 238,770 | 485,405 | |||||||||
Shareholder servicing costs | 22,208 | 76,940 | 121,519 | |||||||||
Administrative services fee | 8,959 | 18,083 | 27,194 | |||||||||
Independent Trustees’ compensation | 1,690 | 2,965 | 6,293 | |||||||||
Custodian fee | 9,152 | 18,157 | 22,540 | |||||||||
Shareholder communications | 3,192 | 5,691 | 7,168 | |||||||||
Audit and tax fees | 25,437 | 25,457 | 25,477 | |||||||||
Legal fees | 3,786 | 2,290 | 5,251 | |||||||||
Registration fees | 14,749 | 15,360 | 20,505 | |||||||||
Miscellaneous | 6,742 | 8,805 | 9,619 | |||||||||
Total expenses | �� | $283,014 | $795,591 | $1,378,071 | ||||||||
Reduction of expenses by investment adviser and distributor | (35,798 | ) | (133,674 | ) | (204,332 | ) | ||||||
Net expenses | $247,216 | $661,917 | $1,173,739 | |||||||||
Net investment income | $927,813 | $2,818,881 | $5,473,268 | |||||||||
Realized and unrealized gain (loss) on investments | ||||||||||||
Realized gain (loss) on investments (identified cost basis) | $172,101 | $260,282 | $603,148 | |||||||||
Change in unrealized appreciation (depreciation) | ||||||||||||
Investments | $(728,919 | ) | $(2,144,698 | ) | $(3,401,801 | ) | ||||||
Futures contracts | — | — | (52,305 | ) | ||||||||
Net unrealized gain (loss) on investments | $(728,919 | ) | $(2,144,698 | ) | $(3,454,106 | ) | ||||||
Net realized and unrealized gain (loss) on investments | $(556,818 | ) | $(1,884,416 | ) | $(2,850,958 | ) | ||||||
Change in net assets from operations | $370,995 | $934,465 | $2,622,310 |
See Notes to Financial Statements
44
Table of Contents
Statements of Operations (unaudited) – continued
Six months ended 9/30/15 | Georgia Fund | Maryland Fund | Massachusetts Fund | |||||||||
Net investment income | ||||||||||||
Interest | $1,274,236 | $1,934,493 | $5,037,229 | |||||||||
Dividends from underlying affiliated funds | 651 | 665 | 1,989 | |||||||||
Total investment income | $1,274,887 | $1,935,158 | $5,039,218 | |||||||||
Expenses | ||||||||||||
Management fee | $134,127 | $194,000 | $509,652 | |||||||||
Distribution and service fees | 80,084 | 116,280 | 296,832 | |||||||||
Shareholder servicing costs | 24,520 | 36,259 | 95,094 | |||||||||
Administrative services fee | 9,495 | 11,561 | 22,451 | |||||||||
Independent Trustees’ compensation | 1,697 | 2,067 | 6,166 | |||||||||
Custodian fee | 11,873 | 12,320 | 20,344 | |||||||||
Shareholder communications | 3,541 | 4,619 | 6,778 | |||||||||
Audit and tax fees | 25,438 | 25,443 | 25,467 | |||||||||
Legal fees | 1,250 | 4,372 | 1,966 | |||||||||
Registration fees | 13,799 | 14,414 | 14,702 | |||||||||
Miscellaneous | 7,479 | 7,382 | 8,965 | |||||||||
Total expenses | $313,303 | $428,717 | $1,008,417 | |||||||||
Reduction of expenses by investment adviser and distributor | (24,946 | ) | (29,189 | ) | (29,884 | ) | ||||||
Net expenses | $288,357 | $399,528 | $978,533 | |||||||||
Net investment income | $986,530 | $1,535,630 | $4,060,685 | |||||||||
Realized and unrealized gain (loss) on investments | ||||||||||||
Realized gain (loss) on investments (identified cost basis) | $74,369 | $(16,993 | ) | $899,453 | ||||||||
Change in unrealized appreciation (depreciation) | ||||||||||||
Investments | $(823,201 | ) | $(1,254,962 | ) | $(3,473,143 | ) | ||||||
Futures contracts | — | (15,580 | ) | (42,289 | ) | |||||||
Net unrealized gain (loss) on investments | $(823,201 | ) | $(1,270,542 | ) | $(3,515,432 | ) | ||||||
Net realized and unrealized gain (loss) on investments | $(748,832 | ) | $(1,287,535 | ) | $(2,615,979 | ) | ||||||
Change in net assets from operations | $237,698 | $248,095 | $1,444,706 |
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.
Six months ended 9/30/15 (unaudited) | Alabama Fund | Arkansas Fund | California Fund | |||||||||
Change in net assets | ||||||||||||
From operations | ||||||||||||
Net investment income | $927,813 | $2,818,881 | $5,473,268 | |||||||||
Net realized gain (loss) on investments | 172,101 | 260,282 | 603,148 | |||||||||
Net unrealized gain (loss) on investments | (728,919 | ) | (2,144,698 | ) | (3,454,106 | ) | ||||||
Change in net assets from operations | $370,995 | $934,465 | $2,622,310 | |||||||||
Distributions declared to shareholders | ||||||||||||
From net investment income | $(958,131 | ) | $(2,541,538 | ) | $(5,184,144 | ) | ||||||
Change in net assets from fund share transactions | $(838,188 | ) | $(8,908,174 | ) | $3,361,823 | |||||||
Total change in net assets | $(1,425,324 | ) | $(10,515,247 | ) | $799,989 | |||||||
Net assets | ||||||||||||
At beginning of period | 53,765,408 | 176,342,475 | 289,923,394 | |||||||||
At end of period | $52,340,084 | $165,827,228 | $290,723,383 | |||||||||
Undistributed net investment income included in net assets at end of period | $92,603 | $325,120 | $349,423 | |||||||||
Six months ended 9/30/15 (unaudited) | Georgia Fund | Maryland Fund | Massachusetts Fund | |||||||||
Change in net assets | ||||||||||||
From operations | ||||||||||||
Net investment income | $986,530 | $1,535,630 | $4,060,685 | |||||||||
Net realized gain (loss) on investments | 74,369 | (16,993 | ) | 899,453 | ||||||||
Net unrealized gain (loss) on investments | (823,201 | ) | (1,270,542 | ) | (3,515,432 | ) | ||||||
Change in net assets from operations | $237,698 | $248,095 | $1,444,706 | |||||||||
Distributions declared to shareholders | ||||||||||||
From net investment income | $(995,133 | ) | $(1,480,519 | ) | $(3,911,422 | ) | ||||||
Change in net assets from fund share transactions | $(950,780 | ) | $(2,539,448 | ) | $(6,463,096 | ) | ||||||
Total change in net assets | $(1,708,215 | ) | $(3,771,872 | ) | $(8,929,812 | ) | ||||||
Net assets | ||||||||||||
At beginning of period | 60,850,496 | 88,762,377 | 232,870,590 | |||||||||
At end of period | $59,142,281 | $84,990,505 | $223,940,778 | |||||||||
Undistributed net investment income included in net assets at end of period | $39,973 | $246,686 | $187,097 |
See Notes to Financial Statements
46
Table of Contents
Statements of Changes in Net Assets – continued
Year ended 3/31/15 | Alabama Fund | Arkansas Fund | California Fund | |||||||||
Change in net assets | ||||||||||||
From operations | ||||||||||||
Net investment income | $1,965,969 | $5,814,403 | $10,274,914 | |||||||||
Net realized gain (loss) on investments | 14,707 | (632,981 | ) | 265,277 | ||||||||
Net unrealized gain (loss) on investments | 1,815,171 | 7,366,730 | 13,411,356 | |||||||||
Change in net assets from operations | $3,795,847 | $12,548,152 | $23,951,547 | |||||||||
Distributions declared to shareholders | ||||||||||||
From net investment income | $(1,878,994 | ) | $(5,567,787 | ) | $(9,990,733 | ) | ||||||
Change in net assets from fund share transactions | $(2,060,613 | ) | $(10,461,451 | ) | $10,864,383 | |||||||
Total change in net assets | $(143,760 | ) | $(3,481,086 | ) | $24,825,197 | |||||||
Net assets | ||||||||||||
At beginning of period | 53,909,168 | 179,823,561 | 265,098,197 | |||||||||
At end of period | $53,765,408 | $176,342,475 | $289,923,394 | |||||||||
Undistributed net investment income included in net assets at end of period | $122,921 | $47,777 | $60,299 | |||||||||
Year ended 3/31/15 | Georgia Fund | Maryland Fund | Massachusetts Fund | |||||||||
Change in net assets | ||||||||||||
From operations | ||||||||||||
Net investment income | $2,031,769 | $3,156,124 | $8,497,714 | |||||||||
Net realized gain (loss) on investments | (65,881 | ) | 36,378 | 352,543 | ||||||||
Net unrealized gain (loss) on investments | 2,414,998 | 3,006,373 | 9,461,124 | |||||||||
Change in net assets from operations | $4,380,886 | $6,198,875 | $18,311,381 | |||||||||
Distributions declared to shareholders | ||||||||||||
From net investment income | $(1,926,156 | ) | $(3,089,520 | ) | $(8,132,556 | ) | ||||||
Change in net assets from fund share transactions | $(2,375,037 | ) | $(6,961,836 | ) | $(13,380,714 | ) | ||||||
Total change in net assets | $79,693 | $(3,852,481 | ) | $(3,201,889 | ) | |||||||
Net assets | ||||||||||||
At beginning of period | 60,770,803 | 92,614,858 | 236,072,479 | |||||||||
At end of period | $60,850,496 | $88,762,377 | $232,870,590 | |||||||||
Undistributed net investment income included in net assets at end of period | $48,576 | $191,575 | $37,834 |
See Notes to Financial Statements
47
Table of Contents
Financial Statements
MFS ALABAMA MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund’s financial performance for the semiannual period and the past 5 fiscal 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.
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Class A | ||||||||||||||||||||||||
Net asset value, beginning of period | $10.48 | $10.11 | $10.70 | $10.50 | $9.72 | $10.25 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | �� | $0.18 | $0.38 | $0.40 | $0.40 | $0.41 | $0.42 | |||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.10 | ) | 0.36 | (0.60 | ) | 0.19 | 0.77 | (0.54 | ) | |||||||||||||||
Total from investment operations | $0.08 | $0.74 | $(0.20 | ) | $0.59 | $1.18 | $(0.12 | ) | ||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.19 | ) | $(0.37 | ) | $(0.39 | ) | $(0.39 | ) | $(0.40 | ) | $(0.41 | ) | ||||||||||||
From net realized gain on investments | — | — | — | — | — | (0.00 | )(w) | |||||||||||||||||
Total distributions declared to shareholders | $(0.19 | ) | $(0.37 | ) | $(0.39 | ) | $(0.39 | ) | $(0.40 | ) | $(0.41 | ) | ||||||||||||
Net asset value, end of period (x) | $10.37 | $10.48 | $10.11 | $10.70 | $10.50 | $9.72 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 0.77 | (n) | 7.37 | (1.83 | ) | 5.63 | 12.30 | (1.21 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||||||
Expenses before expense reductions (f) | 1.06 | (a) | 1.09 | 1.05 | 0.96 | 0.99 | 0.97 | |||||||||||||||||
Expenses after expense reductions (f) | 0.93 | (a) | 0.93 | 0.93 | 0.93 | 0.93 | 0.93 | |||||||||||||||||
Net investment income | 3.53 | (a) | 3.69 | 3.94 | 3.74 | 4.01 | 4.12 | |||||||||||||||||
Portfolio turnover | 5 | (n) | 22 | 15 | 10 | 21 | 20 | |||||||||||||||||
Net assets at end of period (000 omitted) | $51,662 | $53,140 | $53,245 | $70,432 | $69,887 | $70,582 |
See Notes to Financial Statements
48
Table of Contents
Financial Highlights – continued
MFS ALABAMA MUNICIPAL BOND FUND – continued
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Class B | ||||||||||||||||||||||||
Net asset value, beginning of period | $10.48 | $10.11 | $10.70 | $10.50 | $9.72 | $10.24 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.14 | $0.30 | $0.32 | $0.32 | $0.33 | $0.34 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.10 | ) | 0.36 | (0.60 | ) | 0.19 | 0.77 | (0.52 | ) | |||||||||||||||
Total from investment operations | $0.04 | $0.66 | $(0.28 | ) | $0.51 | $1.10 | $(0.18 | ) | ||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.15 | ) | $(0.29 | ) | $(0.31 | ) | $(0.31 | ) | $(0.32 | ) | $(0.34 | ) | ||||||||||||
From net realized gain on investments | — | — | — | — | — | (0.00 | )(w) | |||||||||||||||||
Total distributions declared to shareholders | $(0.15 | ) | $(0.29 | ) | $(0.31 | ) | $(0.31 | ) | $(0.32 | ) | $(0.34 | ) | ||||||||||||
Net asset value, end of period (x) | $10.37 | $10.48 | $10.11 | $10.70 | $10.50 | $9.72 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 0.39 | (n) | 6.57 | (2.56 | ) | 4.85 | 11.47 | (1.84 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||||||
Expenses before expense reductions (f) | 1.82 | (a) | 1.84 | 1.80 | 1.71 | 1.74 | 1.72 | |||||||||||||||||
Expenses after expense reductions (f) | 1.68 | (a) | 1.68 | 1.68 | 1.68 | 1.68 | 1.68 | |||||||||||||||||
Net investment income | 2.77 | (a) | 2.92 | 3.18 | 2.99 | 3.28 | 3.37 | |||||||||||||||||
Portfolio turnover | 5 | (n) | 22 | 15 | 10 | 21 | 20 | |||||||||||||||||
Net assets at end of period (000 omitted) | $679 | $626 | $664 | $1,133 | $1,826 | $3,179 |
(a) | Annualized. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(w) | Per share amount was less than $0.01. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
See Notes to Financial Statements
49
Table of Contents
Financial Highlights – continued
MFS ARKANSAS MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund’s financial performance for the semiannual period and the past 5 fiscal 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.
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Class A | ||||||||||||||||||||||||
Net asset value, beginning of period | $10.04 | $9.66 | $10.23 | $10.17 | $9.49 | $9.95 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.17 | $0.32 | $0.34 | $0.37 | $0.38 | $0.41 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.11 | ) | 0.37 | (0.58 | ) | 0.05 | 0.68 | (0.47 | ) | |||||||||||||||
Total from investment operations | $0.06 | $0.69 | $(0.24 | ) | $0.42 | $1.06 | $(0.06 | ) | ||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.15 | ) | $(0.31 | ) | $(0.33 | ) | $(0.36 | ) | $(0.38 | ) | $(0.40 | ) | ||||||||||||
From net realized gain on investments | — | — | — | — | — | (0.00 | )(w) | |||||||||||||||||
Total distributions declared to shareholders | $(0.15 | ) | $(0.31 | ) | $(0.33 | ) | $(0.36 | ) | $(0.38 | ) | $(0.40 | ) | ||||||||||||
Net asset value, end of period (x) | $9.95 | $10.04 | $9.66 | $10.23 | $10.17 | $9.49 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 0.61 | (n) | 7.21 | (2.32 | ) | 4.10 | 11.34 | (0.62 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||||||
Expenses before expense reductions (f) | 0.90 | (a) | 0.90 | 0.89 | 0.86 | 0.87 | 0.87 | |||||||||||||||||
Expenses after expense reductions (f) | 0.75 | (a) | 0.74 | 0.74 | 0.71 | 0.72 | 0.72 | |||||||||||||||||
Net investment income | 3.34 | (a) | 3.25 | 3.48 | 3.59 | 3.86 | 4.20 | |||||||||||||||||
Portfolio turnover | 7 | (n) | 20 | 19 | 16 | 12 | 20 | |||||||||||||||||
Net assets at end of period (000 omitted) | $159,114 | $169,354 | $172,590 | $232,510 | $213,736 | $178,685 |
See Notes to Financial Statements
50
Table of Contents
Financial Highlights – continued
MFS ARKANSAS MUNICIPAL BOND FUND – continued
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Class B | ||||||||||||||||||||||||
Net asset value, beginning of period | $10.05 | $9.67 | $10.24 | $10.18 | $9.50 | $9.96 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.13 | $0.25 | $0.26 | $0.29 | $0.31 | $0.33 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.11 | ) | 0.36 | (0.58 | ) | 0.04 | 0.67 | (0.47 | ) | |||||||||||||||
Total from investment operations | $0.02 | $0.61 | $(0.32 | ) | $0.33 | $0.98 | $(0.14 | ) | ||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.11 | ) | $(0.23 | ) | $(0.25 | ) | $(0.27 | ) | $(0.30 | ) | $(0.32 | ) | ||||||||||||
From net realized gain on investments | — | — | — | — | — | (0.00 | )(w) | |||||||||||||||||
Total distributions declared to shareholders | $(0.11 | ) | $(0.23 | ) | $(0.25 | ) | $(0.27 | ) | $(0.30 | ) | $(0.32 | ) | ||||||||||||
Net asset value, end of period (x) | $9.96 | $10.05 | $9.67 | $10.24 | $10.18 | $9.50 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 0.22 | (n) | 6.40 | (3.06 | ) | 3.29 | 10.47 | (1.43 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||||||
Expenses before expense reductions (f) | 1.66 | (a) | 1.65 | 1.64 | 1.61 | 1.62 | 1.62 | |||||||||||||||||
Expenses after expense reductions (f) | 1.51 | (a) | 1.50 | 1.51 | 1.50 | 1.49 | 1.53 | |||||||||||||||||
Net investment income | 2.58 | (a) | 2.49 | 2.71 | 2.80 | 3.08 | 3.37 | |||||||||||||||||
Portfolio turnover | 7 | (n) | 20 | 19 | 16 | 12 | 20 | |||||||||||||||||
Net assets at end of period (000 omitted) | $6,713 | $6,989 | $7,234 | $9,435 | $8,749 | $7,816 |
(a) | Annualized. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(w) | Per share amount was less than $0.01. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
See Notes to Financial Statements
51
Table of Contents
Financial Highlights – continued
MFS CALIFORNIA MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund’s financial performance for the semiannual period and the past 5 fiscal 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.
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Class A | ||||||||||||||||||||||||
Net asset value, beginning of period | $6.05 | $5.74 | $6.05 | $5.84 | $5.23 | $5.56 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.12 | $0.23 | $0.24 | $0.23 | $0.24 | $0.26 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.07 | ) | 0.30 | (0.32 | ) | 0.21 | 0.61 | (0.34 | ) | |||||||||||||||
Total from investment operations | $0.05 | $0.53 | $(0.08 | ) | $0.44 | $0.85 | $(0.08 | ) | ||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.11 | ) | $(0.22 | ) | $(0.23 | ) | $(0.23 | ) | $(0.24 | ) | $(0.25 | ) | ||||||||||||
Net asset value, end of period (x) | $5.99 | $6.05 | $5.74 | $6.05 | $5.84 | $5.23 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 0.86 | (n) | 9.38 | (1.20 | ) | 7.59 | 16.48 | (1.53 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||||||
Expenses before expense reductions (f) | 0.87 | (a) | 0.87 | 0.87 | 0.85 | 0.86 | 0.85 | |||||||||||||||||
Expenses after expense reductions (f) | 0.71 | (a) | 0.72 | 0.72 | 0.70 | 0.71 | 0.70 | |||||||||||||||||
Net investment income | 3.91 | (a) | 3.82 | 4.17 | 3.90 | 4.26 | 4.79 | |||||||||||||||||
Portfolio turnover | 10 | (n) | 24 | 26 | 20 | 35 | 24 | |||||||||||||||||
Net assets at end of period (000 omitted) | $257,334 | $255,482 | $232,451 | $288,367 | $277,271 | $263,306 | ||||||||||||||||||
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Class B | ||||||||||||||||||||||||
Net asset value, beginning of period | $6.05 | $5.74 | $6.05 | $5.84 | $5.23 | $5.57 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.09 | $0.18 | $0.19 | $0.19 | $0.20 | $0.22 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.06 | ) | 0.31 | (0.31 | ) | 0.20 | 0.60 | (0.35 | ) | |||||||||||||||
Total from investment operations | $0.03 | $0.49 | $(0.12 | ) | $0.39 | $0.80 | $(0.13 | ) | ||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.09 | ) | $(0.18 | ) | $(0.19 | ) | $(0.18 | ) | $(0.19 | ) | $(0.21 | ) | ||||||||||||
Net asset value, end of period (x) | $5.99 | $6.05 | $5.74 | $6.05 | $5.84 | $5.23 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 0.47 | (n) | 8.55 | (1.96 | ) | 6.75 | 15.60 | (2.46 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||||||
Expenses before expense reductions (f) | 1.62 | (a) | 1.62 | 1.62 | 1.60 | 1.61 | 1.60 | |||||||||||||||||
Expenses after expense reductions (f) | 1.48 | (a) | 1.48 | 1.49 | 1.48 | 1.47 | 1.47 | |||||||||||||||||
Net investment income | 3.15 | (a) | 3.07 | 3.40 | 3.12 | 3.51 | 4.01 | |||||||||||||||||
Portfolio turnover | 10 | (n) | 24 | 26 | 20 | 35 | 24 | |||||||||||||||||
Net assets at end of period (000 omitted) | $2,872 | $3,535 | $3,976 | $5,176 | $5,640 | $6,769 |
See Notes to Financial Statements
52
Table of Contents
Financial Highlights – continued
MFS CALIFORNIA MUNICIPAL BOND FUND – continued
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Class C | ||||||||||||||||||||||||
Net asset value, beginning of period | $6.07 | $5.76 | $6.07 | $5.86 | $5.25 | $5.58 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.09 | $0.17 | $0.19 | $0.18 | $0.19 | $0.21 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.07 | ) | 0.31 | (0.32 | ) | 0.20 | 0.61 | (0.34 | ) | |||||||||||||||
Total from investment operations | $0.02 | $0.48 | $(0.13 | ) | $0.38 | $0.80 | $(0.13 | ) | ||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.08 | ) | $(0.17 | ) | $(0.18 | ) | $(0.17 | ) | $(0.19 | ) | $(0.20 | ) | ||||||||||||
Net asset value, end of period (x) | $6.01 | $6.07 | $5.76 | $6.07 | $5.86 | $5.25 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 0.40 | (n) | 8.37 | (2.08 | ) | 6.60 | 15.38 | (2.41 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||||||
Expenses before expense reductions (f) | 1.62 | (a) | 1.62 | 1.62 | 1.60 | 1.61 | 1.60 | |||||||||||||||||
Expenses after expense reductions (f) | 1.61 | (a) | 1.62 | 1.62 | 1.60 | 1.61 | 1.60 | |||||||||||||||||
Net investment income | 3.00 | (a) | 2.91 | 3.26 | 2.99 | 3.34 | 3.87 | |||||||||||||||||
Portfolio turnover | 10 | (n) | 24 | 26 | 20 | 35 | 24 | |||||||||||||||||
Net assets at end of period (000 omitted) | $30,517 | $30,907 | $28,672 | $35,120 | $33,626 | $30,393 |
(a) | Annualized. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
See Notes to Financial Statements
53
Table of Contents
Financial Highlights – continued
MFS GEORGIA MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund’s financial performance for the semiannual period and the past 5 fiscal 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.
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Class A | ||||||||||||||||||||||||
Net asset value, beginning of period | $11.02 | $10.58 | $11.18 | $10.96 | $10.08 | $10.59 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.18 | $0.37 | $0.38 | $0.38 | $0.41 | $0.44 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.13 | ) | 0.42 | (0.62 | ) | 0.21 | 0.88 | (0.52 | ) | |||||||||||||||
Total from investment operations | $0.05 | $0.79 | $(0.24 | ) | $0.59 | $1.29 | $(0.08 | ) | ||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.18 | ) | $(0.35 | ) | $(0.36 | ) | $(0.37 | ) | $(0.41 | ) | $(0.43 | ) | ||||||||||||
Net asset value, end of period (x) | $10.89 | $11.02 | $10.58 | $11.18 | $10.96 | $10.08 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 0.49 | (n) | 7.53 | (2.09 | ) | 5.38 | 12.98 | (0.84 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||||||
Expenses before expense reductions (f) | 1.03 | (a) | 1.04 | 1.01 | 0.96 | 1.02 | 1.02 | |||||||||||||||||
Expenses after expense reductions (f) | 0.95 | (a) | 0.95 | 0.95 | 0.95 | 0.95 | 0.98 | |||||||||||||||||
Net investment income | 3.33 | (a) | 3.37 | 3.54 | 3.41 | 3.89 | 4.16 | |||||||||||||||||
Portfolio turnover | 7 | (n) | 16 | 15 | 14 | 19 | 22 | |||||||||||||||||
Net assets at end of period (000 omitted) | $57,789 | $59,289 | $59,068 | $80,336 | $69,093 | $57,878 |
See Notes to Financial Statements
54
Table of Contents
Financial Highlights – continued
MFS GEORGIA MUNICIPAL BOND FUND – continued
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Class B | ||||||||||||||||||||||||
Net asset value, beginning of period | $11.06 | $10.62 | $11.22 | $11.00 | $10.12 | $10.63 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.14 | $0.29 | $0.29 | $0.30 | $0.33 | $0.36 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.13 | ) | 0.42 | (0.61 | ) | 0.20 | 0.88 | (0.52 | ) | |||||||||||||||
Total from investment operations | $0.01 | $0.71 | $(0.32 | ) | $0.50 | $1.21 | $(0.16 | ) | ||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.14 | ) | $(0.27 | ) | $(0.28 | ) | $(0.28 | ) | $(0.33 | ) | $(0.35 | ) | ||||||||||||
Net asset value, end of period (x) | $10.93 | $11.06 | $10.62 | $11.22 | $11.00 | $10.12 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 0.11 | (n) | 6.70 | (2.81 | ) | 4.57 | 12.09 | (1.58 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||||||
Expenses before expense reductions (f) | 1.78 | (a) | 1.78 | 1.76 | 1.70 | 1.78 | 1.77 | |||||||||||||||||
Expenses after expense reductions (f) | 1.70 | (a) | 1.70 | 1.70 | 1.70 | 1.70 | 1.72 | |||||||||||||||||
Net investment income | 2.57 | (a) | 2.61 | 2.76 | 2.64 | 3.14 | 3.39 | |||||||||||||||||
Portfolio turnover | 7 | (n) | 16 | 15 | 14 | 19 | 22 | |||||||||||||||||
Net assets at end of period (000 omitted) | $1,353 | $1,561 | $1,702 | $2,382 | $1,952 | $2,385 |
(a) | Annualized. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
See Notes to Financial Statements
55
Table of Contents
Financial Highlights – continued
MFS MARYLAND MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund’s financial performance for the semiannual period and the past 5 fiscal 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.
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Class A | ||||||||||||||||||||||||
Net asset value, beginning of period | $11.13 | $10.76 | $11.47 | $11.34 | $10.45 | $10.93 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.20 | $0.38 | $0.42 | $0.46 | $0.46 | $0.46 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.17 | ) | 0.36 | (0.73 | ) | 0.09 | 0.88 | (0.49 | ) | |||||||||||||||
Total from investment operations | $0.03 | $0.74 | $(0.31 | ) | $0.55 | $1.34 | $(0.03 | ) | ||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.19 | ) | $(0.37 | ) | $(0.40 | ) | $(0.42 | ) | $(0.45 | ) | $(0.45 | ) | ||||||||||||
From net realized gain on investments | — | — | — | — | — | (0.00 | )(w) | |||||||||||||||||
Total distributions declared to shareholders | $(0.19 | ) | $(0.37 | ) | $(0.40 | ) | $(0.42 | ) | $(0.45 | ) | $(0.45 | ) | ||||||||||||
Net asset value, end of period (x) | $10.97 | $11.13 | $10.76 | $11.47 | $11.34 | $10.45 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 0.28 | (n) | 6.99 | (2.66 | ) | 4.86 | 13.01 | (0.35 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||||||
Expenses before expense reductions (f) | 0.98 | (a) | 0.97 | 0.96 | 0.92 | 0.94 | 0.94 | |||||||||||||||||
Expenses after expense reductions (f) | 0.91 | (a) | 0.95 | 0.95 | 0.92 | 0.94 | 0.94 | |||||||||||||||||
Net investment income | 3.58 | (a) | 3.46 | 3.85 | 4.00 | 4.16 | 4.20 | |||||||||||||||||
Portfolio turnover | 6 | (n) | 18 | 21 | 23 | 13 | 14 | |||||||||||||||||
Net assets at end of period (000 omitted) | $82,852 | $86,455 | $90,417 | $110,729 | $107,738 | $100,324 |
See Notes to Financial Statements
56
Table of Contents
Financial Highlights – continued
MFS MARYLAND MUNICIPAL BOND FUND – continued
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Class B | ||||||||||||||||||||||||
Net asset value, beginning of period | $11.12 | $10.75 | $11.47 | $11.33 | $10.45 | $10.93 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.16 | $0.30 | $0.34 | $0.37 | $0.38 | $0.38 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.16 | ) | 0.36 | (0.74 | ) | 0.10 | 0.86 | (0.49 | ) | |||||||||||||||
Total from investment operations | $— | $0.66 | $(0.40 | ) | $0.47 | $1.24 | $(0.11 | ) | ||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.15 | ) | $(0.29 | ) | $(0.32 | ) | $(0.33 | ) | $(0.36 | ) | $(0.37 | ) | ||||||||||||
From net realized gain on investments | — | — | — | — | — | (0.00 | )(w) | |||||||||||||||||
Total distributions declared to shareholders | $(0.15 | ) | $(0.29 | ) | $(0.32 | ) | $(0.33 | ) | $(0.36 | ) | $(0.37 | ) | ||||||||||||
Net asset value, end of period (x) | $10.97 | $11.12 | $10.75 | $11.47 | $11.33 | $10.45 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | (0.01 | )(n) | 6.19 | (3.47 | ) | 4.17 | 12.07 | (1.09 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||||||
Expenses before expense reductions (f) | 1.73 | (a) | 1.72 | 1.71 | 1.67 | 1.70 | 1.69 | |||||||||||||||||
Expenses after expense reductions (f) | 1.66 | (a) | 1.70 | 1.70 | 1.67 | 1.69 | 1.69 | |||||||||||||||||
Net investment income | 2.83 | (a) | 2.70 | 3.10 | 3.25 | 3.42 | 3.44 | |||||||||||||||||
Portfolio turnover | 6 | (n) | 18 | 21 | 23 | 13 | 14 | |||||||||||||||||
Net assets at end of period (000 omitted) | $2,139 | $2,308 | $2,198 | $3,507 | $3,406 | $3,772 |
(a) | Annualized. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(w) | Per share amount was less than $0.01. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
See Notes to Financial Statements
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Financial Highlights – continued
MFS MASSACHUSETTS MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund’s financial performance for the semiannual period and the past 5 fiscal 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.
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Class A | ||||||||||||||||||||||||
Net asset value, beginning of period | $11.40 | $10.92 | $11.66 | $11.44 | $10.42 | $11.07 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.20 | $0.40 | $0.42 | $0.43 | $0.45 | $0.47 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.13 | ) | 0.47 | (0.76 | ) | 0.19 | 1.01 | (0.63 | ) | |||||||||||||||
Total from investment operations | $0.07 | $0.87 | $(0.34 | ) | $0.62 | $1.46 | $(0.16 | ) | ||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.19 | ) | $(0.39 | ) | $(0.40 | ) | $(0.40 | ) | $(0.44 | ) | $(0.45 | ) | ||||||||||||
From net realized gain on investments | — | — | — | — | — | (0.04 | ) | |||||||||||||||||
Total distributions declared to shareholders | $(0.19 | ) | $(0.39 | ) | $(0.40 | ) | $(0.40 | ) | $(0.44 | ) | $(0.49 | ) | ||||||||||||
Net asset value, end of period (x) | $11.28 | $11.40 | $10.92 | $11.66 | $11.44 | $10.42 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 0.67 | (n) | 8.02 | (2.85 | ) | 5.48 | 14.21 | (1.57 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||||||
Expenses before expense reductions (f) | 0.88 | (a) | 0.86 | 0.87 | 0.85 | 0.85 | 0.86 | |||||||||||||||||
Expenses after expense reductions (f) | 0.85 | (a) | 0.84 | 0.85 | 0.85 | 0.85 | 0.86 | |||||||||||||||||
Net investment income | 3.60 | (a) | 3.58 | 3.80 | 3.64 | 4.04 | 4.25 | |||||||||||||||||
Portfolio turnover | 6 | (n) | 13 | 23 | 15 | 26 | 25 | |||||||||||||||||
Net assets at end of period (000 omitted) | $220,696 | $229,134 | $232,263 | $296,895 | $289,090 | $266,600 |
See Notes to Financial Statements
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Financial Highlights – continued
MFS MASSACHUSETTS MUNICIPAL BOND FUND – continued
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Class B | ||||||||||||||||||||||||
Net asset value, beginning of period | $11.42 | $10.94 | $11.68 | $11.46 | $10.44 | $11.09 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.16 | $0.32 | $0.33 | $0.34 | $0.36 | $0.39 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.13 | ) | 0.46 | (0.75 | ) | 0.20 | 1.02 | (0.63 | ) | |||||||||||||||
Total from investment operations | $0.03 | $0.78 | $(0.42 | ) | $0.54 | $1.38 | $(0.24 | ) | ||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.15 | ) | $(0.30 | ) | $(0.32 | ) | $(0.32 | ) | $(0.36 | ) | $(0.37 | ) | ||||||||||||
From net realized gain on investments | — | — | — | — | — | (0.04 | ) | |||||||||||||||||
Total distributions declared to shareholders | $(0.15 | ) | $(0.30 | ) | $(0.32 | ) | $(0.32 | ) | $(0.36 | ) | $(0.41 | ) | ||||||||||||
Net asset value, end of period (x) | $11.30 | $11.42 | $10.94 | $11.68 | $11.46 | $10.44 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 0.29 | (n) | 7.18 | (3.59 | ) | 4.69 | 13.33 | (2.30 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||||||
Expenses before expense reductions (f) | 1.63 | (a) | 1.61 | 1.62 | 1.60 | 1.60 | 1.60 | |||||||||||||||||
Expenses after expense reductions (f) | 1.62 | (a) | 1.60 | 1.62 | 1.60 | 1.60 | 1.60 | |||||||||||||||||
Net investment income | 2.82 | (a) | 2.81 | 3.02 | 2.88 | 3.29 | 3.50 | |||||||||||||||||
Portfolio turnover | 6 | (n) | 13 | 23 | 15 | 26 | 25 | |||||||||||||||||
Net assets at end of period (000 omitted) | $3,245 | $3,737 | $3,810 | $5,095 | $5,443 | $7,333 |
(a) | Annualized. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
See Notes to Financial Statements
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(unaudited)
(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 Standards 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.
Balance Sheet Offsetting – Each fund’s accounting policy with respect to balance sheet offsetting is that, absent an event of default by the counterparty or a termination of the agreement, the International Swaps and Derivatives Association (ISDA) Master Agreement does not result in an offset of reported amounts of financial assets and financial liabilities in the Statements of Assets and Liabilities across transactions between each fund and the applicable counterparty. Each fund’s right to setoff may be restricted or prohibited by the bankruptcy or insolvency laws of the particular jurisdiction to which a specific master netting agreement counterparty is subject. Balance sheet offsetting disclosures, 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, 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 may be valued at amortized cost, which approximates market value. Futures contracts are generally valued at last posted settlement price as provided by a third-party pricing service on the market on which they are primarily traded. Futures contracts for which there were no trades that day for a particular position are generally valued at the closing bid quotation as provided by a third-party pricing service on the market on which such futures contracts are primarily traded. 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
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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. Other financial instruments are derivative instruments not reflected in total investments, such as futures contracts for the California Fund, the Maryland Fund, and the Massachusetts Fund. The following is a summary of the levels used as of September 30, 2015 in valuing each fund’s assets or liabilities:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Alabama Fund | ||||||||||||||||
Investments at Value | ||||||||||||||||
Municipal Bonds | $— | $50,961,465 | $— | $50,961,465 | ||||||||||||
Mutual Funds | 863,951 | — | — | 863,951 | ||||||||||||
Total Investments | $863,951 | $50,961,465 | $— | $51,825,416 | ||||||||||||
Arkansas Fund | ||||||||||||||||
Investments at Value | ||||||||||||||||
Municipal Bonds | $— | $163,898,212 | $— | $163,898,212 | ||||||||||||
Mutual Funds | 139,679 | — | — | 139,679 | ||||||||||||
Total Investments | $139,679 | $163,898,212 | $— | $164,037,891 | ||||||||||||
California Fund | ||||||||||||||||
Investments at Value | ||||||||||||||||
Municipal Bonds | $— | $285,408,369 | $— | $285,408,369 | ||||||||||||
Mutual Funds | 4,480,124 | — | — | 4,480,124 | ||||||||||||
Total Investments | $4,480,124 | $285,408,369 | $— | $289,888,493 | ||||||||||||
Other Financial Instruments | ||||||||||||||||
Futures Contracts | $(52,305 | ) | $— | $— | $(52,305 | ) | ||||||||||
Georgia Fund | ||||||||||||||||
Investments at Value | ||||||||||||||||
Municipal Bonds | $— | $57,125,145 | $— | $57,125,145 | ||||||||||||
Mutual Funds | 1,453,747 | — | — | 1,453,747 | ||||||||||||
Total Investments | $1,453,747 | $57,125,145 | $— | $58,578,892 | ||||||||||||
Maryland Fund | ||||||||||||||||
Investments at Value | ||||||||||||||||
Municipal Bonds | $— | $83,236,350 | $— | $83,236,350 | ||||||||||||
Mutual Funds | 763,306 | — | — | 763,306 | ||||||||||||
Total Investments | $763,306 | $83,236,350 | $— | $83,999,656 | ||||||||||||
Other Financial Instruments | ||||||||||||||||
Futures Contracts | $(15,580 | ) | $— | $— | $(15,580 | ) | ||||||||||
Massachusetts Fund | ||||||||||||||||
Investments at Value | ||||||||||||||||
Municipal Bonds | $— | $219,911,074 | $— | $219,911,074 | ||||||||||||
Mutual Funds | 798,357 | — | — | 798,357 | ||||||||||||
Total Investments | $798,357 | $219,911,074 | $— | $220,709,431 | ||||||||||||
Other Financial Instruments | ||||||||||||||||
Futures Contracts | $(42,289 | ) | $— | $— | $(42,289 | ) |
For further information regarding security characteristics, see the Portfolio of Investments.
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Notes to Financial Statements (unaudited) – continued
Derivatives – The California Fund, the Maryland Fund, and the Massachusetts Fund use derivatives for different purposes, primarily to increase or decrease exposure to a particular market or segment of the market, or security, to increase or decrease interest rate exposure, or as alternatives to direct investments. Derivatives are used for hedging or non-hedging purposes. While hedging can reduce or eliminate losses, it can also reduce or eliminate gains. When the funds use derivatives as an investment to increase market exposure, or for hedging purposes, gains and losses from derivative instruments may be substantially greater than the derivative’s original cost.
The derivative instruments used by the California Fund, the Maryland Fund, and the Massachusetts Fund were futures contracts. These funds’ period end derivatives, as presented in the Portfolio of Investments and the associated Derivative Contract tables, generally are indicative of the volume of their derivative activity during the period.
The following table presents, by major type of derivative contract, the fair value, on a gross basis, of the asset and liability components of derivatives held by the California Fund, the Maryland Fund, and the Massachusetts Fund at September 30, 2015 as reported in the Statements of Assets and Liabilities:
Fair Value (a) | ||||||||
Fund | Risk | Derivative Contracts | Liability Derivatives | |||||
California Fund | Interest Rate | Interest Rate Futures | $(52,305 | ) | ||||
Maryland Fund | Interest Rate | Interest Rate Futures | (15,580 | ) | ||||
Massachusetts Fund | Interest Rate | Interest Rate Futures | (42,289 | ) |
(a) | The value of futures contracts includes cumulative appreciation (depreciation) as reported in each fund’s Portfolio of Investments. Only the current day variation margin for futures contracts is separately reported within each fund’s Statement of Assets and Liabilities. |
The following table presents, by major type of derivative contract, the change in unrealized appreciation (depreciation) on derivatives held by the California Fund, the Maryland Fund, and the Massachusetts Fund for the six months ended September 30, 2015 as reported in the Statements of Operations:
Fund | Risk | Futures Contracts | ||
California Fund | Interest Rate | $(52,305) | ||
Maryland Fund | Interest Rate | (15,580) | ||
Massachusetts Fund | Interest Rate | (42,289) |
There is no realized gain (loss) from derivative transactions during the period.
Derivative counterparty credit risk is managed through formal evaluation of the creditworthiness of all potential counterparties. On certain, but not all, uncleared derivatives, each fund attempts to reduce its exposure to counterparty credit risk whenever possible by entering into an ISDA Master Agreement on a bilateral basis. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the other party. Upon an event of default or a termination of the ISDA Master Agreement, the non-defaulting party has the right to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of each fund’s credit risk to such counterparty equal to any amounts payable by each fund under the applicable transactions, if any.
Collateral and margin requirements differ by type of derivative. Margin requirements are set by the clearing broker and the clearing house for cleared derivatives (e.g., futures contracts, cleared swaps, and exchange-traded options) while collateral terms are contract specific for uncleared derivatives (e.g., forward foreign currency exchange contracts, uncleared swap agreements, and uncleared options). For derivatives traded under an ISDA Master Agreement, which contains a collateral support annex, the collateral requirements are netted across all transactions traded under such agreement and one amount is posted from one party to the other to collateralize such obligations. Cash that has been segregated to cover each fund’s collateral or margin obligations under derivative contracts, if any, will be reported separately in the Statements of Assets and Liabilities as “Restricted cash” or “Deposits with brokers.” Securities pledged as collateral or margin for the same purpose, if any, are noted in the Portfolio of Investments.
Futures Contracts – The California Fund, the Maryland Fund, and the Massachusetts Fund entered into futures contracts which may be used to hedge against or obtain broad market exposure, interest rate exposure, or to manage duration. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date.
Upon entering into a futures contract, each fund is required to deposit with the broker, either in cash or securities, an initial margin in an amount equal to a certain percentage of the notional amount of the contract. Subsequent payments (variation margin) are made or received by each fund each day, depending on the daily fluctuations in the value of the contract, and are recorded for financial statement purposes as unrealized gain or loss by each fund until the contract is closed or expires at which point the gain or loss on futures contracts is realized.
Each fund bears the risk of interest rates or securities prices moving unexpectedly, in which case, each fund may not achieve the anticipated benefits of the futures contracts and may realize a loss. While futures contracts may present less counterparty risk to each
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Notes to Financial Statements (unaudited) – continued
fund since the contracts are exchange traded and the exchange’s clearinghouse guarantees payments to the broker, there is still counterparty credit risk due to the insolvency of the broker. Each fund’s maximum risk of loss due to counterparty credit risk is equal to the margin posted by each fund to the broker plus any gains or minus any losses on the outstanding futures contracts.
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.
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 by a credit earned under an arrangement that measures the value of U.S. dollars deposited with the custodian by each fund. For the six months ended September 30, 2015, custody fees were not reduced.
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 made during the current period will be determined at fiscal year end. The tax character of distributions declared to shareholders for the last fiscal year is as follows:
Year ended 3/31/15 | Alabama Fund | Arkansas Fund | California Fund | Georgia Fund | Maryland Fund | Massachusetts Fund | ||||||||||||||||||
Ordinary income (including any short-term capital gains) | $— | $27,225 | $2,462 | $265 | $— | $3,840 | ||||||||||||||||||
Tax-exempt income | 1,878,994 | 5,540,562 | 9,988,271 | 1,925,891 | 3,089,520 | 8,128,716 | ||||||||||||||||||
Total distributions | $1,878,994 | $5,567,787 | $9,990,733 | $1,926,156 | $3,089,520 | $8,132,556 |
The federal tax cost and the tax basis components of distributable earnings were as follows:
As of 9/30/15 | Alabama Fund | Arkansas Fund | California Fund | Georgia Fund | Maryland Fund | Massachusetts Fund | ||||||||||||||||||
Cost of investments | $47,954,808 | $155,091,679 | $265,301,191 | $54,302,770 | $78,556,912 | $198,235,505 | ||||||||||||||||||
Gross appreciation | 3,900,183 | 10,160,403 | 24,993,692 | 4,431,878 | 5,654,213 | 22,750,603 | ||||||||||||||||||
Gross depreciation | (29,575 | ) | (1,214,191 | ) | (406,390 | ) | (155,756 | ) | (211,469 | ) | (276,677 | ) | ||||||||||||
Net unrealized appreciation (depreciation) | $3,870,608 | $8,946,212 | $24,587,302 | $4,276,122 | $5,442,744 | $22,473,926 | ||||||||||||||||||
As of 3/31/15 | ||||||||||||||||||||||||
Undistributed ordinary income | 82,966 | — | 403 | — | — | — | ||||||||||||||||||
Undistributed tax-exempt income | 205,708 | 497,423 | 896,257 | 218,862 | 461,419 | 709,165 | ||||||||||||||||||
Capital loss carryforwards | (1,899,227 | ) | (6,609,060 | ) | (12,465,965 | ) | (2,078,733 | ) | (3,471,100 | ) | (8,704,236 | ) | ||||||||||||
Other temporary differences | (165,753 | ) | (449,646 | ) | (836,361 | ) | (170,286 | ) | (269,844 | ) | (671,331 | ) | ||||||||||||
Net unrealized appreciation (depreciation) | 4,566,415 | 10,867,857 | 27,841,550 | 5,040,846 | 6,634,080 | 25,813,790 |
The aggregate cost above includes prior fiscal year end tax adjustments, if applicable.
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Notes to Financial Statements (unaudited) – 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, 2015, 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 | $(353,973 | ) | $(2,079,856 | ) | $(3,706,078 | ) | $(967,476 | ) | $(1,451,759 | ) | $(4,463,922 | ) | ||||||||||||
Long-Term | (870,877 | ) | (4,331,545 | ) | (4,851,842 | ) | (691,130 | ) | (1,439,695 | ) | (3,751,752 | ) | ||||||||||||
Total | $(1,224,850 | ) | $(6,411,401 | ) | $(8,557,920 | ) | $(1,658,606 | ) | $(2,891,454 | ) | $(8,215,674 | ) |
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 | ||||||||||
Six months 9/30/15 | Year ended | Six months ended 9/30/15 | Year ended | Six months ended 9/30/15 | Year ended | |||||||
Class A | $948,625 | $1,861,548 | $2,465,383 | $5,401,176 | $4,716,451 | $9,042,099 | ||||||
Class B | 9,506 | 17,446 | 76,155 | 166,611 | 45,823 | 110,890 | ||||||
Class C | — | — | — | — | 421,870 | 837,744 | ||||||
Total | $958,131 | $1,878,994 | $2,541,538 | $5,567,787 | $5,184,144 | $9,990,733 | ||||||
Georgia Fund | Maryland Fund | Massachusetts Fund | ||||||||||
Six months 9/30/15 | Year ended | Six months ended 9/30/15 | Year ended | Six months ended 9/30/15 | Year ended | |||||||
Class A | $976,597 | $1,886,597 | $1,451,000 | $3,030,117 | $3,865,158 | $8,031,591 | ||||||
Class B | 18,536 | 39,559 | 29,519 | 59,403 | 46,264 | 100,965 | ||||||
Total | $995,133 | $1,926,156 | $1,480,519 | $3,089,520 | $3,911,422 | $8,132,556 |
(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 six months ended September 30, 2015, 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 | |||||
$1,821 | $5,882 | $9,937 | $2,060 | $2,979 | $7,826 |
The management fee incurred for the six months ended September 30, 2015 was equivalent to an annual effective rate of 0.44% of each fund’s average daily net assets.
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Notes to Financial Statements (unaudited) – continued
The investment adviser has agreed in writing to pay a portion of the following funds’ total annual operating expenses, excluding interest, taxes, extraordinary expenses, brokerage and transaction costs, and investment-related expenses, such that total 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% | 0.83% | |||||||||
Class B | 1.68% | 1.70% | 1.58% |
For the Alabama Fund, this written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until July 31, 2016. For the Georgia Fund, this written agreement will continue until at least July 31, 2016, 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 six months ended September 30, 2015, these reductions amounted to $33,604 for the Alabama Fund and $22,633 for the Georgia Fund and are included in the reduction of total expenses in the Statements of Operations.
For the Maryland Fund, for the period April 1, 2015 through July 31, 2015, the investment adviser had agreed in writing to pay a portion of the fund’s total annual operating expenses, excluding interest, taxes, extraordinary expenses, brokerage and transaction costs, and investment-related expenses, such that total fund operating expenses do not exceed 0.95% of the fund’s average daily net assets annually for Class A shares and 1.70% of the fund’s average daily net assets annually for Class B shares. This written agreement terminated on July 31, 2015. For the period April 1, 2015 through July 31, 2015, this reduction amounted to $5,083 and is included in the reduction of total expenses in the Statements of Operations. Effective August 1, 2015, the investment adviser has agreed in writing to pay a portion of the fund’s total annual operating expenses, excluding interest, taxes, extraordinary expenses, brokerage and transaction costs, and investment-related expenses, such that total fund operating expenses do not exceed 0.83% of the fund’s average daily net assets annually for Class A shares and 1.58% of the fund’s average daily net assets annually for Class B shares. This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until July 31, 2016. For the period August 1, 2015 through September 30, 2015, this reduction amounted to $19,794 and is 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 six months ended September 30, 2015, 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 | |||||
$2,205 | $5,038 | $9,319 | $2,355 | $1,962 | $3,297 |
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 Plan (d) | Annual Effective Rate (e) | Distribution and Service Fee | ||||||||||||||||
Alabama Fund | — | 0.25% | 0.25% | 0.25% | $65,230 | |||||||||||||||
Arkansas Fund | — | 0.25% | 0.25% | 0.10% | 204,920 | |||||||||||||||
California Fund | — | 0.25% | 0.25% | 0.10% | 318,733 | |||||||||||||||
Georgia Fund | — | 0.25% | 0.25% | 0.25% | 72,930 | |||||||||||||||
Maryland Fund | — | 0.25% | 0.25% | 0.25% | 105,339 | |||||||||||||||
Massachusetts Fund | — | 0.25% | 0.25% | 0.23% | 279,609 | |||||||||||||||
CLASS B | ||||||||||||||||||||
Distribution Fee Rate (d) | Service Fee Rate (d) | Total Plan (d) | Annual Effective Rate (e) | Distribution and Service Fee | ||||||||||||||||
Alabama Fund | 0.75% | 0.25% | 1.00% | 1.00% | $3,296 | |||||||||||||||
Arkansas Fund | 0.75% | 0.25% | 1.00% | 0.86% | 33,850 | |||||||||||||||
California Fund | 0.75% | 0.25% | 1.00% | 0.87% | 15,568 | |||||||||||||||
Georgia Fund | 0.75% | 0.25% | 1.00% | 1.00% | 7,154 | |||||||||||||||
Maryland Fund | 0.75% | 0.25% | 1.00% | 1.00% | 10,941 | |||||||||||||||
Massachusetts Fund | 0.75% | 0.25% | 1.00% | 1.00% | 17,223 |
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Notes to Financial Statements (unaudited) – continued
CLASS C | ||||||||||||||||||||
Distribution Fee Rate (d) | Service Fee Rate (d) | Total Plan (d) | Annual Effective Rate (e) | Distribution and Service Fee | ||||||||||||||||
California Fund | 0.75% | 0.25% | 1.00% | 1.00% | $151,104 |
Alabama Fund | Arkansas Fund | California Fund | Georgia Fund | Maryland Fund | Massachusetts Fund | |||||||||||||||||||
Total Distribution and Service Fees | $68,526 | $238,770 | $485,405 | $80,084 | $116,280 | $296,832 |
(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 six months ended September 30, 2015 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 six months ended September 30, 2015, 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 | $373 | $128 | $1,063 | $253 | $1,333 | $22,056 | ||||||||||||||||||
Class B | — | — | — | — | — | 2 | ||||||||||||||||||
Class C | N/A | N/A | 1 | N/A | N/A | N/A |
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, 2016. This reduction amounted to $122,952 and 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, 2016. This reduction amounted to $4,712 and 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, 2016. This reduction amounted to $191,241 and 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, 2016. This reduction amounted to $2,090 and 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. 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 six months ended September 30, 2015, were as follows:
CDSC imposed | Alabama Fund | Arkansas Fund | California Fund | Georgia Fund | Maryland Fund | Massachusetts Fund | ||||||||||||||||||
Class A | $— | $1,109 | $235 | $2,852 | $983 | $— | ||||||||||||||||||
Class B | 427 | 6,805 | 12,194 | 1,920 | 1,808 | 5,852 | ||||||||||||||||||
Class C | N/A | N/A | 1,598 | 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 six months ended September 30, 2015, 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 | $1,935 | $3,831 | $10,502 | $2,234 | $6,691 | $11,157 | ||||||||||||||||||
Percentage of average daily net assets | 0.0073% | 0.0045% | 0.0073% | 0.0075% | 0.0155% | 0.0099% |
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 six months ended September 30, 2015, 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 | |||||
$20,273 | $73,109 | $111,017 | $22,286 | $29,568 | $83,937 |
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Notes to Financial Statements (unaudited) – continued
Administrator – MFS provides certain financial, legal, shareholder communications, compliance, and other administrative services to each fund. Under an administrative services agreement, each fund 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 six months ended September 30, 2015 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 | 0.0340% | 0.0212% | 0.0189% | 0.0319% | 0.0268% | 0.0198% |
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 for the six months ended September 30, 2015 and were as follows:
Alabama Fund | Arkansas Fund | California Fund | Georgia Fund | Maryland Fund | Massachusetts Fund | |||||
$62 | $82 | $375 | $60 | $315 | $322 |
The liability for deferred retirement benefits payable to certain independent Trustees under the DB plan amounted to the following at September 30, 2015, and are 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 | |||||
$2,917 | $2,779 | $8,750 | $3,297 | $5,675 | $5,640 |
Other – These funds and certain other funds managed by MFS (the funds) have entered into a service agreement (the ISO Agreement) which provides for payment of fees solely by the funds to Tarantino LLC in return for the provision of services of an Independent Senior Officer (ISO) for the funds. Frank L. Tarantino serves as the ISO and is an officer of the funds and the sole member of Tarantino LLC. The funds can terminate the ISO Agreement with Tarantino LLC at any time under the terms of the ISO Agreement. For the six months ended September 30, 2015, the fee paid by each fund under this agreement 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 | |||||
$59 | $192 | $317 | $68 | $97 | $253 |
MFS has agreed to bear all expenses associated with office space, other administrative support, and supplies provided to the ISO.
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 |
For the six months ended September 30, 2015, 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 | $2,706,414 | $11,847,684 | $36,120,600 | $4,233,499 | $5,062,088 | $12,929,610 | ||||||||||||||||||
Sales | $4,269,728 | $17,740,309 | $28,761,817 | $5,675,889 | $6,371,897 | $14,812,334 |
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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 | |||||||||||||||||||||||||||||||
Six months ended 9/30/15 | Year ended 3/31/15 | Six months ended 9/30/15 | Year ended 3/31/15 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | ||||||||||||||||||||||||||||||||
Class A | 132,178 | $1,369,485 | 357,063 | $3,712,095 | 430,627 | $4,274,343 | 1,469,010 | $14,590,422 | ||||||||||||||||||||||||
Class B | 6,692 | 69,348 | 16,311 | 168,856 | 5,262 | 52,348 | 31,040 | 310,284 | ||||||||||||||||||||||||
138,870 | $1,438,833 | 373,374 | $3,880,951 | 435,889 | $4,326,691 | 1,500,050 | $14,900,706 | |||||||||||||||||||||||||
Shares issued to shareholders in reinvestment of distributions | ||||||||||||||||||||||||||||||||
Class A | 77,066 | $798,011 | 144,558 | $1,502,996 | 224,788 | $2,229,915 | 484,333 | $4,817,006 | ||||||||||||||||||||||||
Class B | 878 | 9,090 | 1,466 | 15,241 | 7,483 | 74,307 | 15,960 | 158,875 | ||||||||||||||||||||||||
77,944 | $807,101 | 146,024 | $1,518,237 | 232,271 | $2,304,222 | 500,293 | $4,975,881 | |||||||||||||||||||||||||
Shares reacquired | ||||||||||||||||||||||||||||||||
Class A | (296,448 | ) | $(3,065,223 | ) | (698,299 | ) | $(7,213,892 | ) | (1,532,856 | ) | $(15,199,686 | ) | (2,953,013 | ) | $(29,347,475 | ) | ||||||||||||||||
Class B | (1,828 | ) | (18,899 | ) | (23,751 | ) | (245,909 | ) | (34,149 | ) | (339,401 | ) | (99,747 | ) | (990,563 | ) | ||||||||||||||||
(298,276 | ) | $(3,084,122 | ) | (722,050 | ) | $(7,459,801 | ) | (1,567,005 | ) | $(15,539,087 | ) | (3,052,760 | ) | $(30,338,038 | ) | |||||||||||||||||
Net change | ||||||||||||||||||||||||||||||||
Class A | (87,204 | ) | $(897,727 | ) | (196,678 | ) | $(1,998,801 | ) | (877,441 | ) | $(8,695,428 | ) | (999,670 | ) | $(9,940,047 | ) | ||||||||||||||||
Class B | 5,742 | 59,539 | (5,974 | ) | (61,812 | ) | (21,404 | ) | (212,746 | ) | (52,747 | ) | (521,404 | ) | ||||||||||||||||||
(81,462 | ) | $(838,188 | ) | (202,652 | ) | $(2,060,613 | ) | (898,845 | ) | $(8,908,174 | ) | (1,052,417 | ) | $(10,461,451 | ) | |||||||||||||||||
California Fund | Georgia Fund | |||||||||||||||||||||||||||||||
Six months ended 9/30/15 | Year ended 3/31/15 | Six months ended 9/30/15 | Year ended 3/31/15 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | ||||||||||||||||||||||||||||||||
Class A | 2,799,812 | $16,699,551 | 5,105,791 | $30,497,083 | 237,654 | $2,584,415 | 634,085 | $6,944,934 | ||||||||||||||||||||||||
Class B | 19,304 | 114,819 | 63,516 | 382,496 | 558 | 6,086 | 5,661 | 62,104 | ||||||||||||||||||||||||
Class C | 200,112 | 1,199,312 | 549,989 | 3,286,739 | — | — | — | — | ||||||||||||||||||||||||
3,019,228 | $18,013,682 | 5,719,296 | $34,166,318 | 238,212 | $2,590,501 | 639,746 | $7,007,038 | |||||||||||||||||||||||||
Shares issued to shareholders in reinvestment of distributions | ||||||||||||||||||||||||||||||||
Class A | 649,687 | $3,875,025 | 1,209,477 | $7,215,263 | 77,775 | $845,379 | 146,017 | $1,593,700 | ||||||||||||||||||||||||
Class B | 6,942 | 41,419 | 16,024 | 95,588 | 1,636 | 17,854 | 3,417 | 37,414 | ||||||||||||||||||||||||
Class C | 56,891 | 340,456 | 108,697 | 650,720 | — | — | — | — | ||||||||||||||||||||||||
713,520 | $4,256,900 | 1,334,198 | $7,961,571 | 79,411 | $863,233 | 149,434 | $1,631,114 | |||||||||||||||||||||||||
Shares reacquired | ||||||||||||||||||||||||||||||||
Class A | (2,762,787 | ) | $(16,466,665 | ) | (4,528,244 | ) | $(26,932,420 | ) | (386,099 | ) | $(4,192,331 | ) | (984,189 | ) | $(10,704,941 | ) | ||||||||||||||||
Class B | (131,657 | ) | (786,564 | ) | (186,997 | ) | (1,113,828 | ) | (19,479 | ) | (212,183 | ) | (28,269 | ) | (308,248 | ) | ||||||||||||||||
Class C | (276,194 | ) | (1,655,530 | ) | (538,905 | ) | (3,217,258 | ) | — | — | — | — | ||||||||||||||||||||
(3,170,638 | ) | $(18,908,759 | ) | (5,254,146 | ) | $(31,263,506 | ) | (405,578 | ) | $(4,404,514 | ) | (1,012,458 | ) | $(11,013,189 | ) | |||||||||||||||||
Net change | ||||||||||||||||||||||||||||||||
Class A | 686,712 | $4,107,911 | 1,787,024 | $10,779,926 | (70,670 | ) | $(762,537 | ) | (204,087 | ) | $(2,166,307 | ) | ||||||||||||||||||||
Class B | (105,411 | ) | (630,326 | ) | (107,457 | ) | (635,744 | ) | (17,285 | ) | (188,243 | ) | (19,191 | ) | (208,730 | ) | ||||||||||||||||
Class C | (19,191 | ) | (115,762 | ) | 119,781 | 720,201 | — | — | — | — | ||||||||||||||||||||||
562,110 | $3,361,823 | 1,799,348 | $10,864,383 | (87,955 | ) | $(950,780 | ) | (223,278 | ) | $(2,375,037 | ) |
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Maryland Fund | Massachusetts Fund | |||||||||||||||||||||||||||||||
Six months ended 9/30/15 | Year ended 3/31/15 | Six months ended 9/30/15 | Year ended 3/31/15 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | ||||||||||||||||||||||||||||||||
Class A | 209,588 | $2,302,205 | 343,021 | $3,776,614 | 708,627 | $7,969,007 | 1,447,584 | $16,328,005 | ||||||||||||||||||||||||
Class B | 5,054 | 55,238 | 31,368 | 344,628 | 3,428 | 38,546 | 25,385 | 284,925 | ||||||||||||||||||||||||
214,642 | $2,357,443 | 374,389 | $4,121,242 | 712,055 | $8,007,553 | 1,472,969 | $16,612,930 | |||||||||||||||||||||||||
Shares issued to shareholders in reinvestment of distributions | ||||||||||||||||||||||||||||||||
Class A | 104,836 | $1,149,910 | 213,216 | $2,352,449 | 285,414 | $3,210,480 | 580,115 | $6,550,829 | ||||||||||||||||||||||||
Class B | 2,467 | 27,056 | 4,965 | 54,779 | 3,570 | 40,225 | 7,486 | 84,676 | ||||||||||||||||||||||||
107,303 | $1,176,966 | 218,181 | $2,407,228 | 288,984 | $3,250,705 | 587,601 | $6,635,505 | |||||||||||||||||||||||||
Shares reacquired | ||||||||||||||||||||||||||||||||
Class A | (533,174 | ) | $(5,854,090 | ) | (1,190,503 | ) | $(13,125,040 | ) | (1,528,620 | ) | $(17,191,756 | ) | (3,194,221 | ) | $(36,022,912 | ) | ||||||||||||||||
Class B | (20,005 | ) | (219,767 | ) | (33,272 | ) | (365,266 | ) | (47,072 | ) | (529,598 | ) | (53,911 | ) | (606,237 | ) | ||||||||||||||||
(553,179 | ) | $(6,073,857 | ) | (1,223,775 | ) | $(13,490,306 | ) | (1,575,692 | ) | $(17,721,354 | ) | (3,248,132 | ) | $(36,629,149 | ) | |||||||||||||||||
Net change | ||||||||||||||||||||||||||||||||
Class A | (218,750 | ) | $(2,401,975 | ) | (634,266 | ) | $(6,995,977 | ) | (534,579 | ) | $(6,012,269 | ) | (1,166,522 | ) | $(13,144,078 | ) | ||||||||||||||||
Class B | (12,484 | ) | (137,473 | ) | 3,061 | 34,141 | (40,074 | ) | (450,827 | ) | (21,040 | ) | (236,636 | ) | ||||||||||||||||||
(231,234 | ) | $(2,539,448 | ) | (631,205 | ) | $(6,961,836 | ) | (574,653 | ) | $(6,463,096 | ) | (1,187,562 | ) | $(13,380,714 | ) |
(6) | Line of Credit |
Each fund and certain other funds managed by MFS participate in a $1.25 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 Overnight Federal Reserve funds rate or daily 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 Overnight Federal Reserve funds rate plus an agreed upon spread. For the six months ended September 30, 2015, 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 | $77 | $266 | $443 | $94 | $134 | $355 | ||||||||||||||||||
Interest Expense | — | — | — | — | — | — |
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Notes to Financial Statements (unaudited) – 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 six months ended September 30, 2015, 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 | |||||||||||||
Alabama Fund | 421,150 | 5,959,383 | (5,516,582) | 863,951 | ||||||||||||
Arkansas Fund | 3,861,499 | 17,522,217 | (21,244,037) | 139,679 | ||||||||||||
California Fund | 14,490,081 | 33,870,819 | (43,880,776) | 4,480,124 | ||||||||||||
Georgia Fund | 899,451 | 8,790,912 | (8,236,616) | 1,453,747 | ||||||||||||
Maryland Fund | 1,796,143 | 8,253,449 | (9,286,286) | 763,306 | ||||||||||||
Massachusetts Fund | 6,414,242 | 16,498,963 | (22,114,848) | 798,357 | ||||||||||||
Realized Gain (Loss) | Capital Gain Distributions | Dividend Income | Ending Value | |||||||||||||
Alabama Fund | $— | $— | $379 | $863,951 | ||||||||||||
Arkansas Fund | — | — | 1,102 | 139,679 | ||||||||||||
California Fund | — | — | 3,577 | 4,480,124 | ||||||||||||
Georgia Fund | — | — | 651 | 1,453,747 | ||||||||||||
Maryland Fund | — | — | 665 | 763,306 | ||||||||||||
Massachusetts Fund | — | — | 1,989 | 798,357 |
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BOARD REVIEW OF INVESTMENT ADVISORY AGREEMENT
The Investment Company Act of 1940 requires that both the full Board of Trustees and a majority of the non-interested (“independent”) Trustees, voting separately, annually approve the continuation of each Fund’s investment advisory agreement with MFS. The Trustees consider matters bearing on the Funds and their advisory arrangements at their meetings throughout the year, including a review of performance data at each regular meeting. In addition, the independent Trustees met several times over the course of three months beginning in May and ending in July, 2015 (“contract review meetings”) for the specific purpose of considering whether to approve the continuation of the investment advisory agreement for the Funds and the other investment companies that the Board oversees (the “MFS Funds”). The independent Trustees were assisted in their evaluation of the Funds’ investment advisory agreement by independent legal counsel, from whom they received separate legal advice and with whom they met separately from MFS during various contract review meetings. The independent Trustees were also assisted in this process by the MFS Funds’ Independent Senior Officer, a senior officer appointed by and reporting to the independent Trustees.
In connection with their deliberations regarding the continuation of the investment advisory agreement, the Trustees, including the independent Trustees, considered such information and factors as they believed, in light of the legal advice furnished to them and their own business judgment, to be relevant. The investment advisory agreement for each Fund was considered separately, although the Trustees also took into account the common interests of all MFS Funds in their review. As described below, the Trustees considered the nature, quality, and extent of the various investment advisory, administrative, and shareholder services performed by MFS under the existing investment advisory agreement and other arrangements with the Funds.
In connection with their contract review meetings, the Trustees received and relied upon materials that included, among other items: (i) information provided by Lipper Inc., an independent third party, on the investment performance of the Funds for various time periods ended December 31, 2014 and the investment performance of a group of funds with substantially similar investment classifications/objectives (the “Lipper performance universe”), (ii) information provided by Lipper Inc. on the Funds’ advisory fees and other expenses and the advisory fees and other expenses of comparable funds identified by Lipper Inc. (the “Lipper expense group”), (iii) information provided by MFS on the advisory fees of comparable portfolios of other clients of MFS, including institutional separate accounts and other clients, (iv) information as to whether and to what extent applicable expense waivers, reimbursements or fee “breakpoints” are observed for the Funds, (v) information regarding MFS’ financial results and financial condition, including MFS’ and certain of its affiliates’ estimated profitability from services performed for the Funds and the MFS Funds as a whole, and compared to MFS’ institutional business, (vi) MFS’ views regarding the outlook for the mutual fund industry and the strategic business plans of MFS, (vii) descriptions of various functions performed by MFS for the Funds, such as compliance monitoring and portfolio trading practices, and (viii) information regarding the overall organization of MFS, including information about MFS’ senior management and other personnel providing investment advisory, administrative and other services to the Funds and the other MFS Funds. The comparative performance, fee and expense information prepared and provided by Lipper Inc. was not independently verified and the independent Trustees did not independently verify any information provided to them by MFS.
The Trustees’ conclusion as to the continuation of the investment advisory agreement was based on a comprehensive consideration of all information provided to the Trustees and not the result of any single factor. Some of the factors that figured particularly in the Trustees’ deliberations are described below, although individual Trustees may have evaluated the information presented differently from one another, giving different weights to various factors. It is also important to recognize that the fee arrangements for the Funds and other MFS Funds are the result of years of review and discussion between the independent Trustees and MFS, that certain aspects of such arrangements may receive greater scrutiny in some years than in others, and that the Trustees’ conclusions may be based, in part, on their consideration of these same arrangements during the course of the year and in prior years.
Based on information provided by Lipper Inc. and MFS, the Trustees reviewed each Fund’s total return investment performance as well as the performance of peer groups of funds over various time periods. The Trustees placed particular emphasis on the total return performance of each Fund’s Class A shares in comparison to the performance of funds in its respective Lipper performance universe over the three-year period ended December 31, 2014, which the Trustees believed was a long enough period to reflect differing market conditions. See below for a description of the performance information considered by the Trustees.
In assessing the reasonableness of each Fund’s advisory fee, the Trustees considered, among other information, each Fund’s advisory fee and the total expense ratio of each Fund’s Class A shares as a percentage of average daily net assets and the advisory fee and total expense ratios of peer groups of funds based on information provided by Lipper Inc. The Trustees considered whether the Funds were subject to any fee waivers or reductions or expense limitations. See below for a description of the fee information considered by the Trustees.
The Trustees also considered the advisory fees charged by MFS to any institutional separate accounts advised by MFS (“separate accounts”) and unaffiliated investment companies for which MFS serves as subadviser (“subadvised funds”) that have comparable investment strategies to the Fund. In comparing these fees, the Trustees considered information provided by MFS as to the generally broader scope of services provided by MFS to the Fund, as well as the more extensive regulatory burdens imposed on MFS in managing the Fund, in comparison to separate accounts and subadvised funds. The Trustees also considered the higher demands placed on MFS’ investment personnel and trading infrastructure as a result of the daily cash in-flows and out-flows of the Fund in comparison to separate accounts.
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Board Review of Investment Advisory Agreement – continued
The Trustees also considered whether each Fund may benefit from any economies of scale in the management of the Fund in the event of growth in assets of the Fund and/or growth in assets of the MFS Funds as a whole. They noted that each Fund’s advisory fee rate schedule is not subject to any breakpoints. Taking into account the information noted below, the Trustees determined not to recommend any advisory fee breakpoints for the Funds at this time. The Trustees also noted that MFS has agreed in writing to waive a portion of the management fees of certain MFS Funds, including the Funds, if the total combined assets of certain funds within the MFS Funds’ complex increase above agreed upon thresholds (the “group fee waiver”), enabling each Fund’s shareholders to share in the benefits from any economies of scale at the complex level. The group fee waiver is reviewed and renewed annually between the Board and MFS. The Trustees concluded that the group fee waiver was sufficient to allow each Fund to benefit from economies of scale as its assets and overall complex assets grow.
The Trustees also considered information prepared by MFS relating to MFS’ costs and profits with respect to each Fund, the MFS Funds considered as a group, and other investment companies and accounts advised by MFS, as well as MFS’ methodologies used to determine and allocate its costs to the MFS Funds, the Funds and other accounts and products for purposes of estimating profitability.
After reviewing these and other factors described herein, the Trustees concluded, within the context of their overall conclusions regarding the investment advisory agreement, that the advisory fees charged to each Fund represent reasonable compensation in light of the services being provided by MFS to the Funds.
In addition, the Trustees considered MFS’ resources and related efforts to continue to retain, attract and motivate capable personnel to serve the Funds. The Trustees also considered current and developing conditions in the financial services industry, including the presence of large and well-capitalized companies which are spending, and appear to be prepared to continue to spend, substantial sums to engage personnel and to provide services to competing investment companies. In this regard, the Trustees also considered the financial resources of MFS and its ultimate parent, Sun Life Financial Inc. The Trustees also considered the advantages and possible disadvantages to the Funds of having an adviser that also serves other investment companies as well as other accounts.
The Trustees also considered the nature, quality, cost, and extent of administrative, transfer agency, and distribution services provided to the Funds by MFS and its affiliates under agreements and plans other than the investment advisory agreement, including any 12b-1 fees the Funds pay to MFS Fund Distributors, Inc. (“MFD”), an affiliate of MFS. The Trustees also considered the nature, extent and quality of certain other services MFS performs or arranges for on the Funds’ behalf, which may include securities lending programs, directed expense payment programs, class action recovery programs, and MFS’ interaction with third-party service providers, principally custodians and sub-custodians. The Trustees concluded that the various non-advisory services provided by MFS and its affiliates on behalf of the Funds were satisfactory.
The Trustees also considered benefits to MFS from the use of the Funds’ portfolio brokerage commissions, if applicable, to pay for investment research and various other factors. Additionally, the Trustees considered so-called “fall-out benefits” to MFS such as reputational value derived from serving as investment manager to the Funds.
Based on their evaluation of factors that they deemed to be material, including those factors described above, the Board of Trustees, including the independent Trustees, concluded that each Fund’s investment advisory agreement with MFS should be continued for an additional one-year period, commencing August 1, 2015.
MFS Alabama Municipal Bond Fund
The total return performance of the Fund’s Class A shares was in the 2nd quintile relative to the other funds in the universe for the three-year period ended December 31, 2014 (the 1st quintile being the best performers and the 5th quintile being the worst performers). The total return performance of the Fund’s Class A shares was in the 2nd quintile for the one-year period and the 3rd quintile for the five-year period ended December 31, 2014 relative to the Lipper performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.
In the course of their deliberations, the Trustees took into account information provided by MFS in connection with the contract review meetings, as well as during investment review meetings conducted with portfolio management personnel during the course of the year regarding the Fund’s performance. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the investment advisory agreement, that they were satisfied with MFS’ responses and efforts relating to investment performance.
In assessing the reasonableness of the Fund’s advisory fee, the Trustees considered that MFS currently observes an expense limitation for the Fund, which may not be changed without the Trustees’ approval. The Trustees also considered that, according to the Lipper data (which takes into account any fee reductions or expense limitations that were in effect during the Fund’s last fiscal year), the Fund’s effective advisory fee rate was lower than the Lipper expense group median and the Fund’s total expense ratio was approximately at the Lipper expense group median.
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Board Review of Investment Advisory Agreement – continued
MFS Arkansas Municipal Bond Fund
The total return performance of the Fund’s Class A shares was in the 4th quintile relative to the other funds in the universe for the three-year period ended December 31, 2014 (the 1st quintile being the best performers and the 5th quintile being the worst performers). The total return performance of the Fund’s Class A shares was in the 3rd quintile for the one-year period and the 4th quintile for the five-year period ended December 31, 2014 relative to the Lipper performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.
The Trustees expressed concern to MFS about the substandard investment performance of the Fund. In the course of their deliberations, the Trustees took into account information provided by MFS in connection with the contract review meetings, as well as during investment review meetings conducted with portfolio management personnel during the course of the year regarding the Fund’s performance. The Trustees observed that there were significant limitations to the usefulness of the comparative data provided by Lipper, Inc., noting that the applicable Lipper universe for the Fund included funds that pursue substantially different investment programs as compared to that pursued by the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the investment advisory agreement, that they were satisfied with MFS’ responses and efforts relating to investment performance.
In assessing the reasonableness of the Fund’s advisory fee, the Trustees considered that, MFD currently observes a Class A 12b-1 fee waiver, which may not be changed without the Trustee’s approval. The Trustees also considered that, according to the Lipper data (which takes into account any fee reductions or expense limitations that were in effect during the Fund’s last fiscal year), the Fund’s effective advisory fee rate and total expense ratio were each approximately at the Lipper expense group median.
MFS California Municipal Bond Fund
The total return performance of the Fund’s Class A shares was in the 3rd quintile relative to the other funds in the universe for the three-year period ended December 31, 2014 (the 1st quintile being the best performers and the 5th quintile being the worst performers). The total return performance of the Fund’s Class A shares was in the 3rd quintile for each of the one- and five-year periods ended December 31, 2014 relative to the Lipper performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.
In the course of their deliberations, the Trustees took into account information provided by MFS in connection with the contract review meetings, including more recent performance information, as well as during investment review meetings conducted with portfolio management personnel during the course of the year regarding the Fund’s performance. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the investment advisory agreement, that they were satisfied with MFS’ responses and efforts relating to investment performance.
In assessing the reasonableness of the Fund’s advisory fee, the Trustees considered that MFD currently observes a Class A 12b-1 fee waiver, which may not be changed without the Trustees’ approval. The Trustees also considered that, according to the Lipper data (which takes into account any fee reductions or expense limitations that were in effect during the Fund’s last fiscal year), the Fund’s effective advisory fee rate was approximately at the Lipper expense group median and the Fund’s total expense ratio was lower than the Lipper expense group median.
MFS Georgia Municipal Bond Fund
The total return performance of the Fund’s Class A shares was in the 2nd quintile relative to the other funds in the universe for the three-year period ended December 31, 2014 (the 1st quintile being the best performers and the 5th quintile being the worst performers). The total return performance of the Fund’s Class A shares was in the 2nd quintile for the one-year period and the 3rd quintile for the five-year period ended December 31, 2014 relative to the Lipper performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.
In the course of their deliberations, the Trustees took into account information provided by MFS in connection with the contract review meetings, as well as during investment review meetings conducted with portfolio management personnel during the course of the year regarding the Fund’s performance. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the investment advisory agreement, that they were satisfied with MFS’ responses and efforts relating to investment performance.
In assessing the reasonableness of the Fund’s advisory fee, the Trustees considered that MFS currently observes an expense limitation for the Fund, which may not be changed without the Trustees’ approval. The Trustees also considered that, according to the Lipper data (which takes into account any fee reductions or expense limitations that were in effect during the Fund’s last fiscal year), the Fund’s effective advisory fee rate was approximately at the Lipper expense group median and the Fund’s total expense ratio was higher than the Lipper expense group median.
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Board Review of Investment Advisory Agreement – continued
MFS Maryland Municipal Bond Fund
The total return performance of the Fund’s Class A shares was in the 2nd quintile relative to the other funds in the universe for the three-year period ended December 31, 2014 (the 1st quintile being the best performers and the 5th quintile being the worst performers). The total return performance of the Fund’s Class A shares was in the 2nd quintile for each of the one year- and five-year periods ended December 31, 2014 relative to the Lipper performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.
In the course of their deliberations, the Trustees took into account information provided by MFS in connection with the contract review meetings, as well as during investment review meetings conducted with portfolio management personnel during the course of the year regarding the Fund’s performance. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the investment advisory agreement, that they were satisfied with MFS’ responses and efforts relating to investment performance.
In assessing the reasonableness of the Fund’s advisory fee, the Trustees considered that MFS currently observes an expense limitation for the Fund and that MFS has agreed to further reduce such expense limitation for the Fund, which may not be changed without the Trustees’ approval. The Trustees also considered that, according to the Lipper data (which takes into account any fee reductions or expense limitations that were in effect during the Fund’s last fiscal year), the Fund’s effective advisory fee rate and the Fund’s total expense ratio were each higher than the Lipper expense group median.
MFS Massachusetts Municipal Bond Fund
The total return performance of the Fund’s Class A shares was in the 3rd quintile relative to the other funds in the universe for the three-year period ended December 31, 2014 (the 1st quintile being the best performers and the 5th quintile being the worst performers). The total return performance of the Fund’s Class A shares was in the 2nd quintile for the one-year period and the 3rd quintile for the five-year period ended December 31, 2014 relative to the Lipper performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.
In the course of their deliberations, the Trustees took into account information provided by MFS in connection with the contract review meetings, as well as during investment review meetings conducted with portfolio management personnel during the course of the year regarding the Fund’s performance. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the investment advisory agreement, that they were satisfied with MFS’ responses and efforts relating to investment performance.
In assessing the reasonableness of the Fund’s advisory fee, the Trustees considered that, according to the Lipper data (which takes into account any fee reductions or expense limitations that were in effect during the Fund’s last fiscal year), the Fund’s effective advisory fee rate and total expense ratio were each approximately at the Lipper expense group median.
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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 “Market Commentary” and “Announcements” sub sections in the “Market Outlooks” section of mfs.com or by clicking on the fund’s name under “Mutual Funds” in the “Products” section of mfs.com.
PROVISION OF FINANCIAL REPORTS AND SUMMARY PROSPECTUSES
Each fund produces financial reports every six months and updates its summary prospectus and prospectus annually. To avoid sending duplicate copies of materials to households, only one copy of each fund’s annual and semiannual report and summary prospectus may be mailed to shareholders having the same last name and residential address on the fund’s records. However, any shareholder may contact MFSC (please see back cover for address and telephone number) to request that copies of these reports and summary prospectuses be sent personally to that shareholder.
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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
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MAILING ADDRESS
MFS Service Center, Inc.
P.O. Box 55824
Boston, MA 02205-5824
OVERNIGHT MAIL
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Table of Contents
SEMIANNUAL REPORT
September 30, 2015
MFS® MUNICIPAL SERIES TRUST
For the states of:
Mississippi, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia
MSTB-SEM
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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 • MAY LOSE VALUE • NO BANK GUARANTEE
Table of Contents
Dear Shareholders:
Despite weak global growth, the U.S. economy continues to expand modestly, buoyed by firming labor and housing markets and resilient consumer spending. However, the U.S. Federal Reserve continues to take a cautious approach to raising interest rates.
In Asia, China’s slowing economic growth has raised concerns and fed global market volatility. Commodity exporters have been hurt by weaker Chinese demand. Global oil markets remain oversupplied, further depressing crude oil and gasoline prices. Japan continues to struggle in its attempt to stimulate its economy through monetary and fiscal policy initiatives.
While the eurozone economy is expanding, growth has been mild and inconsistent, while deflation remains a risk. Hopes for a more robust recovery rest on the European Central Bank’s quantitative easing program.
The world’s financial markets have become increasingly complex in recent years. Now, more than ever, it is important to understand companies on a global basis. At MFS®, we believe our integrated research platform, collaborative culture, active risk management process and long-term focus give us a research advantage.
As investors, we aim to add long-term value. We believe this approach will serve you well as you work with your financial advisor to reach your investment objectives.
Respectfully,
Robert J. Manning
Chairman
MFS Investment Management
November 13, 2015
The opinions expressed in this letter are subject to change and may not be relied upon for investment advice. No forecasts can be guaranteed.
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MFS Mississippi Municipal Bond Fund
Portfolio structure (i)
Top five industries (i) | ||||
State & Local Agencies | 22.2% | |||
Universities – Colleges | 17.7% | |||
Healthcare Revenue – Hospitals | 14.9% | |||
General Obligations – General Purpose | 9.5% | |||
General Obligations – Schools | 6.0% | |||
Composition including fixed income credit quality (a)(i) | ||||
AAA | 3.2% | |||
AA | 43.9% | |||
A | 34.2% | |||
BBB | 12.0% | |||
BB | 2.2% | |||
B | 0.1% | |||
CC | 0.2% | |||
Not Rated | 3.7% | |||
Cash & Cash Equivalents | 0.5% | |||
Portfolio facts (i) | ||||
Average Duration (d) | 6.3 | |||
Average Effective Maturity (m) | 15.0 yrs. |
Jurisdiction (i) | ||||
Mississippi | 77.6% | |||
Guam | 2.8% | |||
Massachusetts | 2.6% | |||
New York | 1.9% | |||
California | 1.8% | |||
U.S. Virgin Islands | 1.8% | |||
Puerto Rico | 1.6% | |||
Michigan | 1.5% | |||
Wisconsin | 1.4% | |||
Illinois | 1.1% | |||
New Hampshire | 1.0% | |||
Kentucky | 0.9% | |||
Tennessee | 0.9% | |||
Virginia | 0.7% | |||
Colorado | 0.6% | |||
Texas | 0.5% | |||
Washington | 0.4% | |||
Florida | 0.3% | |||
New Jersey | 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 value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining 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 & Cash Equivalents can include cash, investments in money market funds, short term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Percentages are based on net assets as of 9/30/15.
The portfolio is actively managed and current holdings may be different.
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Portfolio Composition – continued
MFS New York Municipal Bond Fund
Portfolio structure (i)
Top five industries (i) | ||||
Universities – Colleges | 19.2% | |||
Healthcare Revenue – Hospitals | 11.8% | |||
State & Local Agencies | 11.0% | |||
Tax – Other | 7.7% | |||
Miscellaneous Revenue – Other | 6.8% | |||
Composition including fixed income credit quality (a)(i) | ||||
AAA | 4.7% | |||
AA | 32.4% | |||
A | 27.1% | |||
BBB | 20.8% | |||
BB | 3.7% | |||
B | 2.3% | |||
CC | 0.2% | |||
Not Rated | 5.9% | |||
Cash & Cash Equivalents | 2.9% | |||
Portfolio facts (i) | ||||
Average Duration (d) | 6.5 | |||
Average Effective Maturity (m) | 16.7 yrs. |
Jurisdiction (i) | ||||
New York | 82.4% | |||
Guam | 2.1% | |||
Illinois | 1.7% | |||
New Jersey | 1.5% | |||
Colorado | 1.3% | |||
Puerto Rico | 1.1% | |||
Texas | 1.1% | |||
U.S. Virgin Islands | 1.0% | |||
Florida | 0.9% | |||
Michigan | 0.9% | |||
Pennsylvania | 0.6% | |||
Wisconsin | 0.6% | |||
California | 0.6% | |||
Washington | 0.3% | |||
Ohio | 0.3% | |||
Indiana | 0.3% | |||
Louisiana | 0.3% | |||
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 value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining 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 & Cash Equivalents can include cash, investments in money market funds, short term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Percentages are based on net assets as of 9/30/15.
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 | 21.0% | |||
Universities – Colleges | 15.3% | |||
State & Local Agencies | 14.4% | |||
Water & Sewer Utility Revenue | 10.2% | |||
Utilities – Municipal Owned | 6.5% | |||
Composition including fixed income credit quality (a)(i) | ||||
AAA | 8.0% | |||
AA | 40.5% | |||
A | 27.8% | |||
BBB | 15.4% | |||
BB | 0.6% | |||
B | 0.8% | |||
CC | 0.2% | |||
Not Rated | 5.8% | |||
Cash & Cash Equivalents | 0.9% | |||
Portfolio facts (i) | ||||
Average Duration (d) | 6.2 | |||
Average Effective Maturity (m) | 15.6 yrs. |
Jurisdiction (i) | ||||
North Carolina | 76.5% | |||
Puerto Rico | 3.4% | |||
Guam | 2.3% | |||
Illinois | 2.2% | |||
New York | 1.8% | |||
Michigan | 1.6% | |||
U.S. Virgin Islands | 1.3% | |||
California | 1.3% | |||
Tennessee | 1.1% | |||
New Jersey | 0.9% | |||
Wisconsin | 0.9% | |||
Florida | 0.8% | |||
Virginia | 0.7% | |||
New Hampshire | 0.7% | |||
Texas | 0.6% | |||
Colorado | 0.6% | |||
Kentucky | 0.6% | |||
Pennsylvania | 0.5% | |||
Ohio | 0.4% | |||
Indiana | 0.3% | |||
Washington | 0.3% | |||
Louisiana | 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 value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining 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 & Cash Equivalents can include cash, investments in money market funds, short term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Percentages are based on net assets as of 9/30/15.
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)(j)
Top five industries (i) | �� | |||
Healthcare Revenue – Hospitals | 19.3% | |||
Universities – Colleges | 18.9% | |||
General Obligations – Schools | 11.3% | |||
General Obligations – General Purpose | 8.4% | |||
Water & Sewer Utility Revenue | 6.4% | |||
Composition including fixed income credit quality (a)(i) | ||||
AAA | 0.8% | |||
AA | 24.8% | |||
A | 41.9% | |||
BBB | 21.1% | |||
BB | 3.5% | |||
B | 0.9% | |||
CC | 0.8% | |||
Not Rated (j) | 2.0% | |||
Cash & Cash Equivalents | 1.1% | |||
Other | 3.1% |
Portfolio facts (i) | ||||
Average Duration (d) | 7.1 | |||
Average Effective Maturity (m) | 16.5 yrs. | |||
Jurisdiction (i) | ||||
Pennsylvania | 83.5% | |||
Illinois | 2.7% | |||
Guam | 1.5% | |||
Michigan | 1.5% | |||
California | 1.2% | |||
Puerto Rico | 1.1% | |||
Florida | 1.0% | |||
Colorado | 0.9% | |||
Tennessee | 0.9% | |||
Texas | 0.9% | |||
New Jersey | 0.9% | |||
Kentucky | 0.7% | |||
New York | 0.5% | |||
Wisconsin | 0.5% | |||
Indiana | 0.3% | |||
Louisiana | 0.3% | |||
Georgia | 0.3% | |||
U.S. Virgin Islands | 0.2% | |||
New Hampshire (o) | 0.0% | |||
U.S. Treasury Securities (j) | (3.1)% |
(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 value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(j) | For the purpose of managing the fund’s duration, the fund holds short treasury futures with a bond equivalent exposure of (3.1)%, which reduce the fund’s interest rate exposure but not its credit exposure. |
(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 & Cash Equivalents can include cash, investments in money market funds, short term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Other can include currency derivatives and/or any offsets to derivative positions.
Percentages are based on net assets as of 9/30/15.
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)(j)
Top five industries (i) | ||||
Healthcare Revenue – Hospitals | 16.5% | |||
Water & Sewer Utility Revenue | 15.8% | |||
State & Local Agencies | 10.5% | |||
General Obligations – Schools | 9.5% | |||
General Obligations – General Purpose | 8.5% | |||
Composition including fixed income credit quality (a)(i) | ||||
AAA | 4.8% | |||
AA | 43.6% | |||
A | 37.6% | |||
BBB | 8.9% | |||
BB | 0.5% | |||
B | 1.6% | |||
CC | 0.3% | |||
Not Rated (j)(o) | 0.0% | |||
Cash & Cash Equivalents | 0.6% | |||
Other | 2.1% |
Portfolio facts (i) | ||||
Average Duration (d) | 6.2 | |||
Average Effective Maturity (m) | 14.5 yrs. | |||
Jurisdiction (i) | ||||
South Carolina | 81.2% | |||
U.S. Virgin Islands | 2.6% | |||
California | 1.7% | |||
Michigan | 1.6% | |||
Guam | 1.5% | |||
Illinois | 1.3% | |||
Kentucky | 1.3% | |||
Puerto Rico | 1.0% | |||
Tennessee | 1.0% | |||
Florida | 0.7% | |||
Pennsylvania | 0.6% | |||
Colorado | 0.6% | |||
Virginia | 0.6% | |||
New Hampshire | 0.6% | |||
New Jersey | 0.5% | |||
New York | 0.5% | |||
Nebraska | 0.5% | |||
Indiana | 0.5% | |||
Texas | 0.4% | |||
Washington | 0.3% | |||
Georgia | 0.2% | |||
Louisiana | 0.2% | |||
Ohio (o) | 0.0% | |||
U.S. Treasury Securities (j) | (2.1)% |
(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 value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(j) | For the purpose of managing the fund’s duration, the fund holds short treasury futures with a bond equivalent exposure of (2.1)%, which reduce the fund’s interest rate exposure but not its credit exposure. |
(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 & Cash Equivalents can include cash, investments in money market funds, short term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Other can include currency derivatives and/or any offsets to derivative positions.
Percentages are based on net assets as of 9/30/15.
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 | 19.5% | |||
Healthcare Revenue – Hospitals | 15.9% | |||
Water & Sewer Utility Revenue | 11.6% | |||
State & Local Agencies | 9.2% | |||
Utilities – Municipal Owned | 9.1% | |||
Composition including fixed income credit quality (a)(i) | ||||
AAA | 4.9% | |||
AA | 54.1% | |||
A | 24.0% | |||
BBB | 10.1% | |||
BB | 0.2% | |||
B | 0.8% | |||
CC | 0.3% | |||
Not Rated | 4.2% | |||
Cash & Cash Equivalents | 1.4% | |||
Portfolio facts (i) | ||||
Average Duration (d) | 6.2 | |||
Average Effective Maturity (m) | 14.5 yrs. |
Jurisdiction (i) | ||||
Tennessee | 83.3% | |||
Guam | 2.6% | |||
Kentucky | 1.9% | |||
New York | 1.8% | |||
U.S. Virgin Islands | 1.3% | |||
Florida | 1.2% | |||
Puerto Rico | 1.1% | |||
Wisconsin | 0.9% | |||
New Jersey | 0.8% | |||
Illinois | 0.7% | |||
Pennsylvania | 0.6% | |||
New Hampshire | 0.6% | |||
Virginia | 0.6% | |||
Colorado | 0.6% | |||
Georgia | 0.3% | |||
Michigan | 0.1% | |||
Texas | 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 value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining 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 & Cash Equivalents can include cash, investments in money market funds, short term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Percentages are based on net assets as of 9/30/15.
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)(j)
Top five industries (i) | ||||
Water & Sewer Utility Revenue | 18.3% | |||
Healthcare Revenue – Hospitals | 16.9% | |||
General Obligations – General Purpose | 14.0% | |||
State��& Local Agencies | 10.5% | |||
Universities – Colleges | 8.7% | |||
Composition including fixed income credit quality (a)(i) | ||||
AAA | 21.0% | |||
AA | 41.6% | |||
A | 16.5% | |||
BBB | 10.9% | |||
BB | 2.5% | |||
B | 1.7% | |||
CCC | 0.6% | |||
CC | 0.4% | |||
Not Rated (j) | 3.6% | |||
Cash & Cash Equivalents | 0.9% | |||
Other | 0.3% |
Portfolio facts (i) | ||||
Average Duration (d) | 6.5 | |||
Average Effective Maturity (m) | 15.1 yrs. | |||
Jurisdiction (i) | ||||
Virginia | 83.1% | |||
District of Columbia | 3.5% | |||
Guam | 2.1% | |||
Illinois | 1.5% | |||
U.S. Virgin Islands | 1.4% | |||
Tennessee | 1.3% | |||
Puerto Rico | 1.0% | |||
Michigan | 0.9% | |||
Ohio | 0.9% | |||
New York | 0.7% | |||
Kentucky | 0.6% | |||
Pennsylvania | 0.6% | |||
Colorado | 0.6% | |||
California | 0.5% | |||
Wisconsin | 0.5% | |||
Washington | 0.3% | |||
Louisiana | 0.3% | |||
New Jersey | 0.3% | |||
New Hampshire | 0.3% | |||
Massachusetts | 0.2% | |||
Texas | 0.2% | |||
Indiana | 0.1% | |||
U.S. Treasury Securities (j) | (2.1)% |
(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 value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(j) | For the purpose of managing the fund’s duration, the fund holds short treasury futures with a bond equivalent exposure of (2.1)%, which reduce the fund’s interest rate exposure but not its credit exposure. |
(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 & Cash Equivalents can include cash, investments in money market funds, short term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Other can include currency derivatives and/or any offsets to derivative positions.
Percentages are based on net assets as of 9/30/15.
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 | 18.9% | |||
Healthcare Revenue – Hospitals | 18.0% | |||
Water & Sewer Utility Revenue | 11.5% | |||
State & Local Agencies | 9.5% | |||
Miscellaneous Revenue – Other | 9.1% | |||
Composition including fixed income credit quality (a)(i) | ||||
AAA | 3.1% | |||
AA | 30.6% | |||
A | 46.9% | |||
BBB | 7.8% | |||
BB | 0.3% | |||
B | 0.1% | |||
CC | 0.2% | |||
Not Rated | 10.6% | |||
Cash & Cash Equivalents | 0.4% | |||
Portfolio facts (i) | ||||
Average Duration (d) | 6.2 | |||
Average Effective Maturity (m) | 14.5 yrs. |
Jurisdiction (i) | ||||
West Virginia | 78.5% | |||
Guam | 3.4% | |||
U.S. Virgin Islands | 2.4% | |||
New York | 2.1% | |||
Michigan | 2.0% | |||
Puerto Rico | 1.8% | |||
Massachusetts | 1.6% | |||
Kentucky | 1.6% | |||
Illinois | 1.5% | |||
Florida | 1.3% | |||
Tennessee | 1.1% | |||
California | 0.7% | |||
Texas | 0.6% | |||
Washington | 0.5% | |||
Indiana | 0.3% | |||
New Jersey | 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 value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining 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 & Cash Equivalents can include cash, investments in money market funds, short term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Percentages are based on net assets as of 9/30/15.
The portfolio is actively managed and current holdings may be different.
9
Table of Contents
Fund expenses borne by the shareholders during the period, April 1, 2015 through September 30, 2015
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 April 1, 2015 through September 30, 2015.
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 Expense Ratio | Beginning Account Value 4/01/15 | Ending Account Value 9/30/15 | Expenses Paid During Period (p) 4/01/15-9/30/15 | ||||||||||||||
A | Actual | 0.80% | $1,000.00 | $1,004.46 | $4.01 | |||||||||||||
Hypothetical (h) | 0.80% | $1,000.00 | $1,021.00 | $4.04 | ||||||||||||||
B | Actual | 1.47% | $1,000.00 | $1,001.12 | $7.35 | |||||||||||||
Hypothetical (h) | 1.47% | $1,000.00 | $1,017.65 | $7.41 |
MFS NEW YORK MUNICIPAL BOND FUND
Share Class | Annualized Expense Ratio | Beginning Account Value 4/01/15 | Ending Account Value 9/30/15 | Expenses Paid During Period (p) 4/01/15-9/30/15 | ||||||||||||||
A | Actual | 0.87% | $1,000.00 | $1,005.90 | $4.36 | |||||||||||||
Hypothetical (h) | 0.87% | $1,000.00 | $1,020.65 | $4.39 | ||||||||||||||
B | Actual | 1.63% | $1,000.00 | $1,002.14 | $8.16 | |||||||||||||
Hypothetical (h) | 1.63% | $1,000.00 | $1,016.85 | $8.22 | ||||||||||||||
C | Actual | 1.63% | $1,000.00 | $1,003.02 | $8.16 | |||||||||||||
Hypothetical (h) | 1.63% | $1,000.00 | $1,016.85 | $8.22 |
(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 183/366 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
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Expense Tables – continued
MFS NORTH CAROLINA MUNICIPAL BOND FUND
Share Class | Annualized Expense Ratio | Beginning Account Value 4/01/15 | Ending Account Value 9/30/15 | Expenses Paid During Period (p) 4/01/15-9/30/15 | ||||||||||||||
A | Actual | 0.86% | $1,000.00 | $1,005.15 | $4.31 | |||||||||||||
Hypothetical (h) | 0.86% | $1,000.00 | $1,020.70 | $4.34 | ||||||||||||||
B | Actual | 1.61% | $1,000.00 | $1,002.22 | $8.06 | |||||||||||||
Hypothetical (h) | 1.61% | $1,000.00 | $1,016.95 | $8.12 | ||||||||||||||
C | Actual | 1.61% | $1,000.00 | $1,001.37 | $8.06 | |||||||||||||
Hypothetical (h) | 1.61% | $1,000.00 | $1,016.95 | $8.12 |
MFS PENNSYLVANIA MUNICIPAL BOND FUND
Share Class | Annualized Expense Ratio | Beginning Account Value 4/01/15 | Ending Account Value 9/30/15 | Expenses Paid During Period (p) 4/01/15-9/30/15 | ||||||||||||||
A | Actual | 0.79% | $1,000.00 | $1,007.03 | $3.96 | |||||||||||||
Hypothetical (h) | 0.79% | $1,000.00 | $1,021.05 | $3.99 | ||||||||||||||
B | Actual | 1.55% | $1,000.00 | $1,002.26 | $7.76 | |||||||||||||
Hypothetical (h) | 1.55% | $1,000.00 | $1,017.25 | $7.82 |
MFS SOUTH CAROLINA MUNICIPAL BOND FUND
Share Class | Annualized Expense Ratio | Beginning Account Value 4/01/15 | Ending Account Value 9/30/15 | Expenses Paid During Period (p) 4/01/15-9/30/15 | ||||||||||||||
A | Actual | 0.87% | $1,000.00 | $1,004.93 | $4.36 | |||||||||||||
Hypothetical (h) | 0.87% | $1,000.00 | $1,020.65 | $4.39 | ||||||||||||||
B | Actual | 1.62% | $1,000.00 | $1,001.16 | $8.10 | |||||||||||||
Hypothetical (h) | 1.62% | $1,000.00 | $1,016.90 | $8.17 |
(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 183/366 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
Notes to Expense Table
For the MFS South Carolina Municipal Bond Fund, changes to the fund’s fee arrangements occurred during the six month period. Had these fee changes been in effect throughout the entire six month period, the annualized expense ratios, the actual expenses paid during the period and the hypothetical expenses paid during the period would have been approximately 0.84%, $4.21 and $4.24 for Class A shares, and 1.59%, $7.95 and $8.02 for Class B shares, respectively. For further information about the fund’s fee arrangements and changes to those fee arrangements, please see Note 3 in the Notes to Financial Statements.
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MFS TENNESSEE MUNICIPAL BOND FUND
Share Class | Annualized Expense Ratio | Beginning Account Value 4/01/15 | Ending Account Value 9/30/15 | Expenses Paid During Period (p) 4/01/15-9/30/15 | ||||||||||||||
A | Actual | 0.92% | $1,000.00 | $1,002.52 | $4.61 | |||||||||||||
Hypothetical (h) | 0.92% | $1,000.00 | $1,020.40 | $4.65 | ||||||||||||||
B | Actual | 1.67% | $1,000.00 | $998.78 | $8.34 | |||||||||||||
Hypothetical (h) | 1.67% | $1,000.00 | $1,016.65 | $8.42 |
Notes to Expense Table
For the MFS Tennessee Municipal Bond Fund, changes to the fund’s fee arrangements occurred during the six month period. Had these fee changes been in effect throughout the entire six month period, the annualized expense ratios, the actual expenses paid during the period and the hypothetical expenses paid during the period would have been approximately 0.88%, $4.41 and $4.45 for Class A shares, and 1.63%, $8.15 and $8.22 for Class B shares, respectively. For further information about the fund’s fee arrangements and changes to those fee arrangements, please see Note 3 in the Notes to Financial Statements.
MFS VIRGINIA MUNICIPAL BOND FUND
Share Class | Annualized Expense Ratio | Beginning Account Value 4/01/15 | Ending Account Value 9/30/15 | Expenses Paid During Period (p) 4/01/15-9/30/15 | ||||||||||||||
A | Actual | 0.86% | $1,000.00 | $1,007.05 | $4.32 | |||||||||||||
Hypothetical (h) | 0.86% | $1,000.00 | $1,020.70 | $4.34 | ||||||||||||||
B | Actual | 1.62% | $1,000.00 | $1,002.41 | $8.11 | |||||||||||||
Hypothetical (h) | 1.62% | $1,000.00 | $1,016.90 | $8.17 | ||||||||||||||
C | Actual | 1.61% | $1,000.00 | $1,003.28 | $8.06 | |||||||||||||
Hypothetical (h) | 1.61% | $1,000.00 | $1,016.95 | $8.12 |
(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 183/366 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
Notes to Expense Table
For the MFS Virginia Municipal Bond Fund, changes to the fund’s fee arrangements occurred during the six month period. Had these fee changes been in effect throughout the entire six month period, the annualized expense ratios, the actual expenses paid during the period and the hypothetical expenses paid during the period would have been approximately 0.82%, $4.11 and $4.14 for Class A shares, 1.57%, $7.86 and $7.92 for Class B shares, and 1.57%, $7.86 and $7.92 for Class C shares, respectively. For further information about the fund’s fee arrangements and changes to those fee arrangements, please see Note 3 in the Notes to Financial Statements.
For the MFS Virginia Municipal Bond Fund, expense ratios include 0.01% of investment related expenses from self-deposited inverse floaters (as described in Note 2 of the Notes to Financial Statements) that are outside of the expense limitation arrangement (See Note 3 of the Notes to Financial Statements).
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MFS WEST VIRGINIA MUNICIPAL BOND FUND
Share Class | Annualized Expense Ratio | Beginning Account Value 4/01/15 | Ending Account Value 9/30/15 | Expenses Paid During Period (p) 4/01/15-9/30/15 | ||||||||||||||
A | Actual | 0.89% | $1,000.00 | $1,003.07 | $4.46 | |||||||||||||
Hypothetical (h) | 0.89% | $1,000.00 | $1,020.55 | $4.50 | ||||||||||||||
B | Actual | 1.64% | $1,000.00 | $999.33 | $8.20 | |||||||||||||
Hypothetical (h) | 1.64% | $1,000.00 | $1,016.80 | $8.27 |
(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 183/366 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
Notes to Expense Table
For the MFS West Virginia Municipal Bond Fund, changes to the fund’s fee arrangements occurred during the six month period. Had these fee changes been in effect throughout the entire six month period, the annualized expense ratios, the actual expenses paid during the period and the hypothetical expenses paid during the period would have been approximately 0.87%, $4.36 and $4.39 for Class A shares, and 1.62%, $8.10 and $8.17 for Class B shares, respectively. For further information about the fund’s fee arrangements and changes to those fee arrangements, please see Note 3 in the Notes to Financial Statements.
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9/30/15 (unaudited)
MFS MISSISSIPPI MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
Municipal Bonds - 98.2% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 0.7% | ||||||||
Dallas and Fort Worth, TX, International Airport Rev., “B”, 5%, 11/01/44 | $ | 115,000 | $ | 126,644 | ||||
Dallas and Fort Worth, TX, International Airport Rev., “C”, 5%, 11/01/45 | 75,000 | 81,977 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, 5%, 12/01/44 | 45,000 | 49,037 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, BAM, 5%, 12/01/39 | 230,000 | 254,378 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/39 | 35,000 | 37,056 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/44 | 60,000 | 63,151 | ||||||
$ | 612,243 | |||||||
General Obligations - General Purpose - 9.4% | ||||||||
Canton, MS, Mississippi Development Bank Special Obligation, “A”, AGM, 5.75%, 10/01/31 | $ | 625,000 | $ | 720,256 | ||||
Guam Government, “A”, 5.25%, 11/15/37 | 155,000 | 169,435 | ||||||
Guam Government, “A”, 6.75%, 11/15/29 | 35,000 | 42,874 | ||||||
Guam Government, “A”, 7%, 11/15/39 | 40,000 | 49,382 | ||||||
Gulfport, MI, AGM, 5%, 11/01/24 | 500,000 | 603,050 | ||||||
Jackson County, MS, Development Bank Special Obligations, AGM, 5.25%, 3/01/20 | 620,000 | 722,877 | ||||||
Jackson County, MS, Development Bank Special Obligations, ASSD GTY, 5.625%, 7/01/39 | 1,000,000 | 1,128,090 | ||||||
Mississippi Development Bank Special Obligation (Canton Public School District), AGM, 5%, 12/01/31 | 1,000,000 | 1,140,240 | ||||||
Mississippi Development Bank Special Obligation (Greenville, MS Project), 5%, 4/01/27 | 185,000 | 193,134 | ||||||
State of California, 6%, 11/01/39 | 700,000 | 833,581 | ||||||
State of Mississippi, “A”, 5%, 10/01/28 | 1,000,000 | 1,209,700 | ||||||
State of Mississippi, Capital Improvement Projects, “A”, 5%, 10/01/30 | 1,000,000 | 1,146,950 | ||||||
$ | 7,959,569 | |||||||
General Obligations - Schools - 5.9% | ||||||||
Lamar County, MS, School District, 5%, 9/01/31 | $ | 1,095,000 | $ | 1,229,455 | ||||
Mississippi Development Bank, Special Obligation (Jackson Public School District Limited Tax Refunding Note Project) “B”, 5%, 10/01/23 | 990,000 | 1,140,391 | ||||||
Mississippi Development Bank, Special Obligation (Jackson Public School District), AGM, 5.375%, 4/01/28 | 1,000,000 | 1,091,890 | ||||||
Mississippi Development Bank, Special Obligation (Gulfport School District), BAM, 5%, 4/01/31 | 500,000 | 566,535 |
Issuer | Shares/Par | Value ($) | ||||||
General Obligations - Schools - continued | ||||||||
Mississippi Development Bank, Special Obligation (Gulfport School District), BAM, 5%, 4/01/32 | $ | 500,000 | $ | 564,550 | ||||
San Diego, CA, Unified School District (Election of 2008), Capital Appreciation, “C”, 0%, 7/01/35 | 1,020,000 | 454,900 | ||||||
$ | 5,047,721 | |||||||
Healthcare Revenue - Hospitals - 14.7% | ||||||||
Gulfport, MS, Hospital Facilities Rev. (Memorial Hospital), NATL, 6.2%, 7/01/18 | $ | 1,000,000 | $ | 1,003,630 | ||||
Gulfport, MS, Hospital Facilities Rev. (Memorial Hospital), 5.75%, 7/01/31 | 500,000 | 501,550 | ||||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 7%, 8/15/44 (Prerefunded 8/15/19) | 325,000 | 397,823 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6.375%, 6/01/40 | 380,000 | 429,883 | ||||||
Louisville & Jefferson County, KY, Metropolitan Government Healthcare Systems Rev. (Norton Healthcare, Inc.), 5.25%, 10/01/36 | 320,000 | 328,147 | ||||||
Miami-Dade County, FL, Health Facilities Authority Hospital Rev. (Variety Children’s Hospital), “A”, 6%, 8/01/30 | 80,000 | 92,558 | ||||||
Mississippi Development Bank Special Obligation (Magnolia Regional Health Center Project), “A”, 6.75%, 10/01/36 | 500,000 | 580,835 | ||||||
Mississippi Hospital Equipment & Facilities Authority Rev. (Baptist Memorial Healthcare), “A”, 5%, 9/01/22 | 1,000,000 | 1,137,260 | ||||||
Mississippi Hospital Equipment & Facilities Authority Rev. (Clay County Medical Corp.), 5%, 10/01/39 | 2,105,000 | 2,314,616 | ||||||
Mississippi Hospital Equipment & Facilities Authority Rev. (Delta Regional Medical Center), FHA, 5%, 2/01/35 | 1,000,000 | 1,033,150 | ||||||
Mississippi Hospital Equipment & Facilities Authority Rev. (Forrest County General Hospital), 5.25%, 1/01/29 | 1,000,000 | 1,089,160 | ||||||
Mississippi Hospital Equipment & Facilities Authority Rev., Refunding & Improvement, Hospital South Central, 5.25%, 12/01/31 | 500,000 | 510,145 | ||||||
Mississippi Hospital Equipment & Facilities Authority Rev., Refunding & Improvement, Southwest Regional Medical Center, 5.5%, 4/01/19 | 250,000 | 250,178 | ||||||
Mississippi Hospital Equipment & Facilities Authority Rev., Refunding & Improvement, Southwest Regional Medical Center, 5.75%, 4/01/23 | 250,000 | 250,055 |
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Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6%, 10/01/27 | $ | 215,000 | $ | 240,579 | ||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6.125%, 10/01/39 | 550,000 | 607,596 | ||||||
St. Petersburg, FL, Health Facilities Authority Rev., 6.5%, 11/15/39 | 135,000 | 164,136 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 6.75%, 7/01/29 (Prerefunded 7/01/19) | 75,000 | 90,443 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 7%, 7/01/39 (Prerefunded 7/01/19) | 185,000 | 224,786 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (ProHealth Care, Inc. Obligated Group), 6.625%, 2/15/39 (Prerefunded 2/15/19) | 640,000 | 759,821 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (Wheaton Franciscan Healthcare), 5.25%, 8/15/31 | 430,000 | 440,084 | ||||||
$ | 12,446,435 | |||||||
Industrial Revenue - Paper - 1.1% | ||||||||
Lowndes County, MS, Solid Waste Disposal & Pollution Control Rev. (Weyerhaeuser Co.), 6.8%, 4/01/22 | $ | 750,000 | $ | 934,035 | ||||
Miscellaneous Revenue - Other - 0.7% | ||||||||
New York Liberty Development Corp., Liberty Rev. (3 World Trade Center Project), “1”, 5%, 11/15/44 | $ | 620,000 | $ | 626,212 | ||||
Multi-Family Housing Revenue - 1.4% | ||||||||
Mississippi Home Corp. Rev. (Kirkwood Apartments Project), 6.8%, 11/01/37 (d)(q) | $ | 150,000 | $ | 104,265 | ||||
Mississippi Home Corp., Multifamily Rev. (Providence Place of Senatobia LLC), GNMA, 5.35%, 8/20/48 | 1,000,000 | 1,043,670 | ||||||
$ | 1,147,935 | |||||||
Sales & Excise Tax Revenue - 3.0% | ||||||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6%, 1/15/41 | $ | 450,000 | $ | 507,029 | ||||
Guam Government Business Privilege Tax Rev., “A”, 5.25%, 1/01/36 | 295,000 | 324,099 | ||||||
Guam Government Business Privilege Tax Rev., “D”, 5%, 11/15/31 | 595,000 | 662,461 | ||||||
Massachusetts Bay Transportation Authority, Sales Tax Rev., “A-1”, 5.25%, 7/01/29 | 750,000 | 960,488 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., 5.25%, 8/01/57 | 200,000 | 124,002 | ||||||
$ | 2,578,079 | |||||||
Single Family Housing - State - 1.7% | ||||||||
Mississippi Home Corp. Rev., Single Family Rev., “A-2 “, GNMA, 5.3%, 6/01/34 | $ | 60,000 | $ | 62,832 |
Issuer | Shares/Par | Value ($) | ||||||
Single Family Housing - State - continued | ||||||||
Mississippi Home Corp. Rev., Single Family Rev., “A-2 “, GNMA, 5.625%, 6/01/39 | $ | 115,000 | $ | 121,515 | ||||
Mississippi Home Corp., Homeownership Mortgage Rev., “A”, 4.55%, 12/01/31 | 1,235,000 | 1,296,886 | ||||||
$ | 1,481,233 | |||||||
State & Agency - Other - 1.2% | ||||||||
Mississippi Development Bank Special Obligations, Harrison County Mississippi Highway Construction, “N”, FGIC, 5%, 1/01/26 (Prerefunded 1/01/16) | $ | 1,000,000 | $ | 1,012,250 | ||||
State & Local Agencies - 21.9% | ||||||||
Los Angeles, CA, Municipal Improvement Corp. Lease Rev. (Real Property), “E”, 6%, 9/01/39 | $ | 190,000 | $ | 219,467 | ||||
Mississippi Development Bank Special Obligation (Laurel, MS, Highway Refunding Project), “B”, 4%, 1/01/22 | 735,000 | 826,037 | ||||||
Mississippi Development Bank Special Obligation (Capital Project & Equipment), AGM, 5%, 7/01/28 (Prerefunded 7/01/17) | 680,000 | 731,836 | ||||||
Mississippi Development Bank Special Obligation (Capital Projects), AGM, 5%, 7/01/28 | 640,000 | 680,352 | ||||||
Mississippi Development Bank Special Obligation (City of Jackson, MS), AMBAC, 4.375%, 3/01/31 (Prerefunded 3/01/16) | 1,400,000 | 1,424,514 | ||||||
Mississippi Development Bank Special Obligation (Department of Corrections), “C”, 5.25%, 8/01/27 | 1,000,000 | 1,139,210 | ||||||
Mississippi Development Bank Special Obligation (Department of Rehabilitation Services Capital Improvement Project), AGM, 5%, 7/01/23 | 345,000 | 394,918 | ||||||
Mississippi Development Bank Special Obligation (Department of Rehabilitation Services Capital Improvement Project), AGM, 5%, 7/01/24 | 360,000 | 412,398 | ||||||
Mississippi Development Bank Special Obligation (Department of Rehabilitation Services Capital Improvement Project), AGM, 5%, 7/01/25 | 380,000 | 432,018 | ||||||
Mississippi Development Bank Special Obligation (Desoto County Highway Construction), AMBAC, 4.75%, 1/01/35 | 500,000 | 544,470 | ||||||
Mississippi Development Bank Special Obligation (Desoto County Mississippi Highway Construction Project), 5%, 1/01/29 | 500,000 | 573,140 | ||||||
Mississippi Development Bank Special Obligation (Desoto County Mississippi Highway Construction Project), 5%, 1/01/30 | 500,000 | 570,670 | ||||||
Mississippi Development Bank Special Obligation (DeSoto County Regional Utility Authority), 5.25%, 7/01/31 | 905,000 | 938,865 | ||||||
Mississippi Development Bank Special Obligation (Forrest County Public Improvement Project), 5%, 2/01/29 | 1,000,000 | 1,076,850 |
15
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Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
State & Local Agencies - continued | ||||||||
Mississippi Development Bank Special Obligation (Harrison County Coliseum), “A”, 5.25%, 1/01/34 | $ | 1,000,000 | $ | 1,257,830 | ||||
Mississippi Development Bank Special Obligation (Harrison County), “D”, ASSD GTY, 4.75%, 10/01/28 | 1,120,000 | 1,249,002 | ||||||
Mississippi Development Bank Special Obligation (Jackson County), ASSD GTY, 5%, 7/01/22 | 500,000 | 573,070 | ||||||
Mississippi Development Bank Special Obligation (Jackson County), ASSD GTY, 5.375%, 7/01/36 | 500,000 | 563,700 | ||||||
Mississippi Development Bank Special Obligation (Montfort Jones Memorial Hospital Project), 5.75%, 5/01/36 | 500,000 | 560,115 | ||||||
Mississippi Development Bank Special Obligation (Southaven Water & Sewer System), ASSD GTY, 5%, 3/01/29 | 750,000 | 850,530 | ||||||
Mississippi Development Bank Special Obligation (Tunica County Building Project), AMBAC, 5%, 7/01/26 (Prerefunded 7/01/16) | 1,695,000 | 1,755,240 | ||||||
Mississippi Development Bank Special Obligation (Washington County Regional Correctional Facility), ASSD GTY, 4.75%, 7/01/31 | 1,200,000 | 1,323,036 | ||||||
Mississippi Development Bank Special Obligation, Madison County (Highway Construction), FGIC, 5%, 1/01/27 (Prerefunded 7/01/16) | 500,000 | 517,770 | ||||||
$ | 18,615,038 | |||||||
Tax - Other - 3.0% | ||||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/24 | $ | 125,000 | $ | 138,656 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/29 | 40,000 | 44,316 | ||||||
State of Mississippi, Gaming Tax Rev., “E”, 5%, 10/15/30 | 750,000 | 857,528 | ||||||
Virgin Islands Public Finance Authority Rev. (Diageo Project), “A”, 6.75%, 10/01/37 | 110,000 | 123,845 | ||||||
Virgin Islands Public Finance Authority Rev., “A-1”, 5%, 10/01/29 | 790,000 | 844,557 | ||||||
Virgin Islands Public Finance Authority Rev., “A-1”, 5%, 10/01/39 | 95,000 | 100,134 | ||||||
Virgin Islands Public Finance Authority Rev., “B”, 5%, 10/01/25 | 85,000 | 93,284 | ||||||
Virgin Islands Public Finance Authority Rev., Matching Fund Loan Note, “A”, 6%, 10/01/39 | 295,000 | 321,403 | ||||||
$ | 2,523,723 | |||||||
Tobacco - 0.7% | ||||||||
Illinois Railsplitter Tobacco Settlement Authority, 6%, 6/01/28 | $ | 420,000 | $ | 495,999 | ||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.75%, 6/01/34 | 155,000 | 119,813 | ||||||
$ | 615,812 |
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 | $ | 110,000 | $ | 136,571 | ||||
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 | 103,075 | ||||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 6%, 1/01/37 | 195,000 | 220,227 | ||||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 5.5%, 1/01/42 | 310,000 | 336,459 | ||||||
$ | 796,332 | |||||||
Transportation - Special Tax - 1.3% | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., AGM, 5.25%, 7/01/33 | $ | 1,135,000 | $ | 1,085,650 | ||||
Universities - Colleges - 17.6% | ||||||||
Alcorn State University, MS, Educational Building Corp. Rev. (Student Housing Project), “A”, 5.125%, 9/01/34 | $ | 1,000,000 | $ | 1,118,560 | ||||
Alcorn State University, MS, Educational Building Corp. Rev. (Student Housing Project), “A”, 5.25%, 9/01/39 | 920,000 | 1,032,277 | ||||||
Jackson State University, Educational Building Corp. Rev., “A-1”, 5%, 3/01/34 | 1,500,000 | 1,675,845 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Massachusetts Institute of Technology), “I-1”, 5.2%, 1/01/28 | 920,000 | 1,196,570 | ||||||
Medical Center, Educational Building Corp. Rev. (University of Mississippi Medical Center), “B”, AMBAC, 5.5%, 12/01/23 | 1,000,000 | 1,152,460 | ||||||
Mississippi State University Educational Building Corp. Rev. (Campus Improvement Project), 5%, 11/01/27 | 400,000 | 477,496 | ||||||
Mississippi State University Educational Building Corp. Rev. (Campus Improvement Project), 5%, 11/01/28 | 350,000 | 416,903 | ||||||
Mississippi Valley State University, Educational Building Corp. Rev., AMBAC, 4.5%, 3/01/37 | 1,000,000 | 1,056,520 | ||||||
New York Dormitory Authority Rev. (New York University), “1”, AMBAC, 5.5%, 7/01/40 | 590,000 | 745,624 | ||||||
University of Mississippi, Educational Building Corp. Rev. (Residential College Project), “A”, 5%, 10/01/33 | 1,500,000 | 1,637,055 | ||||||
University of Mississippi, Educational Building Corp. Rev. (Residential College Project), “C”, 4.75%, 11/01/34 | 715,000 | 787,823 | ||||||
University of Southern Mississippi, COP (Parking Facilities Project), ASSD GTY, 5.125%, 9/15/39 | 490,000 | 544,620 |
16
Table of Contents
Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
University of Southern Mississippi, Educational Building Corp. Rev. (Facilities Refinancing Project) “A”, 5%, 3/01/28 | $ | 1,745,000 | $ | 2,061,177 | ||||
University of Southern Mississippi, Educational Building Corp. Rev., “B”, AGM, 5%, 3/01/32 | 1,000,000 | 1,020,190 | ||||||
$ | 14,923,120 | |||||||
Universities - Dormitories - 4.7% | ||||||||
Mississippi Business Finance Corp., Rev. (Statesman Housing LLC Project), “A”, 4.75%, 6/01/39 | $ | 1,000,000 | $ | 1,058,690 | ||||
Mississippi State University, Educational Building Corp. Rev., 5%, 8/01/36 | 1,585,000 | 1,766,974 | ||||||
Mississippi State University, Educational Building Corp. Rev., 5.25%, 8/01/38 | 1,000,000 | 1,138,820 | ||||||
$ | 3,964,484 | |||||||
Utilities - Investor Owned - 0.8% | ||||||||
Michigan Strategic Fund Ltd. Obligation Rev. (Detroit Edison Co.), 5.625%, 7/01/20 | $ | 370,000 | $ | 434,184 | ||||
Michigan Strategic Fund Ltd. Obligation Rev. (Detroit Edison Co.), 5.5%, 8/01/29 (Put Date 8/01/16) | 265,000 | 274,347 | ||||||
$ | 708,531 | |||||||
Utilities - Municipal Owned - 3.2% | ||||||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/33 | $ | 315,000 | $ | 363,308 | ||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/39 | 75,000 | 85,299 | ||||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/44 | 85,000 | 96,104 | ||||||
Long Island, NY, Power Authority, Electric Systems Rev., “A”, 6%, 5/01/33 | 155,000 | 178,306 | ||||||
Mississippi Development Bank Special Obligation (Columbus Electric Systems Project), ASSD GTY, 4.7%, 7/01/27 | 155,000 | 169,919 | ||||||
Mississippi Development Bank Special Obligation (Columbus Electric Systems Project), ASSD GTY, 4.75%, 7/01/28 | 100,000 | 110,829 | ||||||
Mississippi Development Bank Special Obligation (Columbus Electric Systems Project), ASSD GTY, 4.85%, 7/01/29 | 485,000 | 538,064 | ||||||
Mississippi Development Bank Special Obligation (Municipal Energy Agency Power Supply Project), “A”, SYNCORA, 5%, 3/01/26 | 1,000,000 | 1,009,100 | ||||||
Puerto Rico Electric Power Authority Rev., “DDD”, AGM, 3.625%, 7/01/23 | 15,000 | 13,952 | ||||||
Puerto Rico Electric Power Authority Rev., “DDD”, AGM, 3.65%, 7/01/24 | 80,000 | 72,468 | ||||||
Puerto Rico Electric Power Authority Rev., “SS”, ASSD GTY, 4.375%, 7/01/30 | 10,000 | 8,863 | ||||||
Puerto Rico Electric Power Authority Rev., “UU”, ASSD GTY, 4.25%, 7/01/27 | 60,000 | 55,030 | ||||||
$ | 2,701,242 |
Issuer | Shares/Par | Value ($) | ||||||
Utilities - Other - 0.9% | ||||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/19 | $ | 375,000 | $ | 420,870 | ||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/21 | 185,000 | 210,970 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/22 | 95,000 | 109,289 | ||||||
$ | 741,129 | |||||||
Water & Sewer Utility Revenue - 3.4% | ||||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5.625%, 7/01/40 | $ | 285,000 | $ | 311,813 | ||||
Guam Waterworks Authority Rev. (Water and Wastewater System), “A”, 5%, 7/01/29 | 30,000 | 33,330 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), “A”, 5%, 7/01/35 | 30,000 | 32,774 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “C-7”, NATL, 5%, 7/01/32 | 25,000 | 27,293 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “D-1”, AGM, 5%, 7/01/35 | 15,000 | 16,422 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “D-1”, AGM, 5%, 7/01/37 | 35,000 | 38,128 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “D-6”, NATL, 5%, 7/01/36 | 30,000 | 32,356 | ||||||
Mississippi Development Bank Special Obligation (City of Jackson Water and Sewer System Rev. Bond Project), AGM, 6.875%, 12/01/40 | 750,000 | 958,988 | ||||||
Mississippi Development Bank Special Obligations (Jackson Water & Sewer System Project), “A”, AGM, 5%, 9/01/23 | 1,220,000 | 1,407,380 | ||||||
$ | 2,858,484 | |||||||
Total Municipal Bonds (Identified Cost, $77,619,893) | $ | 83,379,257 | ||||||
Money Market Funds - 1.8% | ||||||||
MFS Institutional Money Market Portfolio, 0.12%, at Cost and Net Asset Value (v) | 1,542,269 | $ | 1,542,269 | |||||
Total Investments (Identified Cost, $79,162,162) | $ | 84,921,526 | ||||||
Other Assets, Less Liabilities - (0.0)% | (36,041) | |||||||
Net Assets - 100.0% | $ | 84,885,485 |
See Portfolio Footnotes and Notes to Financial Statements
17
Table of Contents
PORTFOLIO OF INVESTMENTS
9/30/15 (unaudited)
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 - 95.8% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 3.1% | ||||||||
Chicago, IL, O’Hare International Airport Rev., Third Lien, “A”, 5.625%, 1/01/35 | $ | 555,000 | $ | 636,314 | ||||
Dallas and Fort Worth, TX, International Airport Rev., “B”, 5%, 11/01/44 | 245,000 | 269,819 | ||||||
Dallas and Fort Worth, TX, International Airport Rev., “C”, 5%, 11/01/45 | 170,000 | 185,813 | ||||||
New York, NY, City Industrial Development Agency, Special Facilities Rev. (Terminal One Group), 5.5%, 1/01/24 | 1,000,000 | 1,012,110 | �� | |||||
Niagara, NY, Frontier Transportation Authority Rev. (Buffalo-Niagara International Airport), “A”, 5%, 4/01/28 | 650,000 | 719,407 | ||||||
Niagara, NY, Frontier Transportation Authority Rev. (Buffalo-Niagara International Airport), “A”, 5%, 4/01/29 | 500,000 | 549,345 | ||||||
Port Authority of NY & NJ, Special Obligation Rev. (JFK International Air Terminal LLC), NATL, 6.25%, 12/01/15 | 1,000,000 | 1,009,290 | ||||||
Port Authority of NY & NJ, Special Obligation Rev. (JFK International Air Terminal LLC), 6%, 12/01/42 | 1,160,000 | 1,348,048 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, 5%, 12/01/44 | 90,000 | 98,073 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, BAM, 5%, 12/01/39 | 15,000 | 16,590 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/39 | 80,000 | 84,699 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/44 | 130,000 | 136,828 | ||||||
$ | 6,066,336 | |||||||
General Obligations - General Purpose - 6.0% | ||||||||
Commonwealth of Puerto Rico, “A”, NATL, 5.5%, 7/01/20 | $ | 525,000 | $ | 521,771 | ||||
Commonwealth of Puerto Rico, “A”, AGM, 5.375%, 7/01/25 | 45,000 | 45,294 | ||||||
Guam Government, “A”, 5.25%, 11/15/37 | 290,000 | 317,008 | ||||||
Guam Government, “A”, 7%, 11/15/39 | 105,000 | 129,628 | ||||||
Nassau County, NY, General Improvement, “B”, 5%, 4/01/23 | 1,820,000 | 2,146,599 | ||||||
New York, NY, “B”, 5%, 8/01/18 | 3,000,000 | 3,342,420 | ||||||
New York, NY, “E”, 5%, 8/01/21 | 2,500,000 | 2,963,350 | ||||||
New York, NY, “E-1”, 6.25%, 10/15/28 (Prerefunded 10/15/18) | 960,000 | 1,115,078 | ||||||
New York, NY, “E-1”, 6.25%, 10/15/28 | 40,000 | 46,299 | ||||||
New York, NY, “J”, FGIC, 5.5%, 2/15/26 | 5,000 | 5,022 | ||||||
Onondaga County, NY, General Obligation, 5%, 5/01/29 | 750,000 | 874,695 |
Issuer | Shares/Par | Value ($) | ||||||
General Obligations - General Purpose - continued | ||||||||
Puerto Rico Public Buildings Authority Rev., “H”, AMBAC, 5.5%, 7/01/17 | $ | 65,000 | $ | 64,566 | ||||
Puerto Rico Public Buildings Authority Rev., “H”, AMBAC, 5.5%, 7/01/18 | 50,000 | 49,369 | ||||||
$ | 11,621,099 | |||||||
Healthcare Revenue - Hospitals - 11.7% | ||||||||
Buffalo & Erie County, NY, Industrial Land Development Corp. Rev. (Catholic Health System, Inc. Project), 5%, 7/01/26 | $ | 450,000 | $ | 517,793 | ||||
Buffalo & Erie County, NY, Industrial Land Development Corp. Rev. (Catholic Health System, Inc. Project), 5%, 7/01/27 | 300,000 | 341,955 | ||||||
Buffalo & Erie County, NY, Industrial Land Development Corp. Rev. (Catholic Health System, Inc. Project), 5%, 7/01/28 | 720,000 | 814,586 | ||||||
Buffalo & Erie County, NY, Industrial Land Development Corp. Rev. (Catholic Health System, Inc. Project), 5%, 7/01/29 | 590,000 | 659,974 | ||||||
Chautauqua County, NY, Capital Resource Corp. Rev. (Women’s Christian Assn.), “A”, 8%, 11/15/30 | 550,000 | 567,485 | ||||||
Dutchess County, NY, Local Development Corp. Rev. (Health Quest Systems),“A”, 5%, 7/01/44 | 1,000,000 | 1,083,160 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.25%, 7/01/31 | 215,000 | 246,156 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.375%, 7/01/41 | 245,000 | 277,524 | ||||||
Madison County, NY, Industrial Development Agency, Civic Facilities Rev. (Oneida), 5.25%, 2/01/27 | 1,425,000 | 1,515,887 | ||||||
Miami-Dade County, FL, Health Facilities Authority Hospital Rev. (Variety Children’s Hospital), “A”, 6%, 8/01/30 | 165,000 | 190,902 | ||||||
Monroe County, NY, Industrial Development Agency, Civic Facilities Rev. (Highland Hospital of Rochester), 5%, 8/01/25 | 995,000 | 998,512 | ||||||
Nassau County, NY, Local Economic Assistance Corp. Rev. (Catholic Health Services of Long Island Obligated Group Project), 5%, 7/01/32 | 1,000,000 | 1,109,810 | ||||||
New Hampshire Business Finance Authority Rev. (Huggins Hospital), 6.875%, 10/01/39 | 35,000 | 37,472 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (Bronx-Lebanon Hospital Center), LOC, 6.25%, 2/15/35 | 1,495,000 | 1,687,735 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (Hospital Special Surgery), FHA, 6.25%, 8/15/34 | 1,995,000 | 2,346,100 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (Mount Sinai Hospital), “A”, 5%, 7/01/26 | 2,000,000 | 2,263,900 |
18
Table of Contents
Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
New York Dormitory Authority Rev., Non-State Supported Debt (NYU Hospitals Center), “A”, 5.5%, 7/01/25 | $ | 750,000 | $ | 852,195 | ||||
New York Dormitory Authority Rev., Non-State Supported Debt (Orange Regional Medical Center), 6.25%, 12/01/37 | 750,000 | 819,810 | ||||||
New York, NY, Health & Hospital Corp. Rev., “A”, 5.5%, 2/15/23 | 1,000,000 | 1,102,180 | ||||||
Royal Oak, MI, Hospital Finance Authority Rev. (William Beaumont Hospital), 5%, 9/01/39 | 1,290,000 | 1,400,605 | ||||||
Suffolk County, NY, Economic Development Corp. Rev. (Catholic Health Services of Long Island), 5%, 7/01/28 | 1,000,000 | 1,102,410 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 6.75%, 7/01/29 (Prerefunded 7/01/19) | 165,000 | 198,974 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 7%, 7/01/39 (Prerefunded 7/01/19) | 395,000 | 479,949 | ||||||
Westchester County, NY, Health Care Corp. Rev., “B”, 6%, 11/01/30 | 1,000,000 | 1,136,550 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (Wheaton Franciscan Healthcare), 5.25%, 8/15/31 | 945,000 | 967,160 | ||||||
$ | 22,718,784 | |||||||
Healthcare Revenue - Long Term Care - 2.0% | ||||||||
Buffalo & Erie County, NY, Industrial Land Development Corp. Rev. (Orchard Park CCRC, Inc. Project), 5%, 11/15/37 | $ | 750,000 | $ | 788,918 | ||||
Suffolk County, NY, Economic Development Corp. Rev. (Peconic Landing at Southold, Inc.), 6%, 12/01/40 | 1,000,000 | 1,091,530 | ||||||
Tompkins County, NY, Development Corp. Continuing Care Retirement Community Rev. (Kendal at Ithaca, Inc. Project), “A”, 5%, 7/01/44 | 1,000,000 | 1,062,540 | ||||||
Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7%, 11/01/30 | 120,000 | 138,924 | ||||||
Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7.125%, 11/01/40 | 180,000 | 206,771 | ||||||
Ulster County, NY, Industrial Development Agency (Woodland Pond), “A”, 6%, 9/15/37 | 500,000 | 497,570 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), “A”, 7.25%, 9/15/29 | 20,000 | 23,535 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), “A”, 7.625%, 9/15/39 | 130,000 | 153,715 | ||||||
$ | 3,963,503 | |||||||
Human Services - 0.4% | ||||||||
New York Dormitory Authority Rev., Non-State Supported Debt (NYSARC, Inc.), “A”, 6%, 7/01/32 | $ | 705,000 | $ | 811,406 |
Issuer | Shares/Par | Value ($) | ||||||
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 | $ | 370,633 | ||||
New York, NY, City Industrial Development Agency Special Facility Rev. (American Airlines, Inc. - JFK International Airport Project), 7.75%, 8/01/31 | 100,000 | 105,697 | ||||||
$ | 476,330 | |||||||
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 | $ | 1,167,540 | ||||
Industrial Revenue - Other - 0.6% | ||||||||
Onondaga County, NY, Industrial Development Agency, Sewer Facilities Rev. (Bristol-Meyers Squibb Co.), 5.75%, 3/01/24 | $ | 1,000,000 | $ | 1,254,720 | ||||
Industrial Revenue - Paper - 0.9% | ||||||||
Build NYC Resource Corp. Solid Waste Disposal Rev. (Pratt Paper, Inc. Project), 4.5%, 1/01/25 | $ | 1,200,000 | $ | 1,283,808 | ||||
Essex County, NY, Industrial Development Agency, Pollution Control Rev. (International Paper Corp.), 6.15%, 4/01/21 | 470,000 | 470,973 | ||||||
$ | 1,754,781 | |||||||
Miscellaneous Revenue - Entertainment & Tourism - 1.0% | ||||||||
Brooklyn, NY, Arena Local Development Corp. (Barclays Center Project), 6.25%, 7/15/40 | $ | 1,750,000 | $ | 1,990,940 | ||||
Miscellaneous Revenue - Other - 6.8% | ||||||||
Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/40 | $ | 205,000 | $ | 214,984 | ||||
Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/44 | 315,000 | 329,068 | ||||||
New York Liberty Development Corp., Liberty Rev. (3 World Trade Center Project), “1”, 5%, 11/15/44 | 1,380,000 | 1,393,828 | ||||||
New York Liberty Development Corp., Liberty Rev. (3 World Trade Center Project), “2”, 5.375%, 11/15/40 | 1,500,000 | 1,573,440 | ||||||
New York Liberty Development Corp., Liberty Rev. (3 World Trade Center Project), “3”, 7.25%, 11/15/44 | 500,000 | 590,755 | ||||||
New York Liberty Development Corp., Liberty Rev. (7 World Trade Center Project), 5%, 9/15/40 | 1,665,000 | 1,907,541 | ||||||
New York Liberty Development Corp., Liberty Rev. (One Bryant Park LLC), 6.375%, 7/15/49 | 2,500,000 | 2,823,825 | ||||||
New York Liberty Development Corp., Liberty Rev. (World Trade Center Project), 5%, 11/15/44 | 1,000,000 | 1,111,700 |
19
Table of Contents
Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
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 | $ | 3,000,000 | $ | 3,218,760 | ||||
$ | 13,163,901 | |||||||
Multi-Family Housing Revenue - 3.5% | ||||||||
East Rochester, NY, Housing Authority Rev. (Woodland Village Project), 5.5%, 8/01/33 | $ | 400,000 | $ | 405,592 | ||||
New York Housing Finance Agency Rev. (Affordable Housing), “D”, 5%, 11/01/40 | 1,520,000 | 1,573,337 | ||||||
New York Housing Finance Agency Rev., “A”, 5.1%, 8/15/41 | 730,000 | 730,504 | ||||||
New York Housing Finance Agency Rev., “A”, 5.25%, 11/01/41 | 1,000,000 | 1,041,680 | ||||||
New York, NY, City Housing Development Corp., Multifamily Housing Rev. (8 Spruce Street), “F”, 4.5%, 2/15/48 | 1,500,000 | 1,589,835 | ||||||
New York, NY, City Housing Development Corp., Multifamily Housing Rev., “A”, 5.5%, 11/01/34 | 10,000 | 10,024 | ||||||
New York, NY, City Housing Development Corp., Multifamily Housing Rev., “C”, 5%, 11/01/26 | 500,000 | 500,695 | ||||||
New York, NY, City Housing Development Corp., Multifamily Housing Rev., “L-1”, 4.8%, 11/01/35 | 1,000,000 | 1,046,930 | ||||||
$ | 6,898,597 | |||||||
Sales & Excise Tax Revenue - 1.8% | ||||||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6%, 1/15/34 | $ | 1,000,000 | $ | 1,128,630 | ||||
Guam Government Business Privilege Tax Rev., “C”, 5%, 11/15/16 | 180,000 | 188,361 | ||||||
Guam Government Business Privilege Tax Rev., “C”, 5%, 11/15/17 | 200,000 | 216,248 | ||||||
Guam Government Business Privilege Tax Rev., “D”, 5%, 11/15/31 | 1,365,000 | 1,519,764 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “A”, 5.5%, 8/01/28 (Prerefunded 8/01/19) | 10,000 | 11,630 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “C”, 5.25%, 8/01/40 | 540,000 | 337,511 | ||||||
$ | 3,402,144 | |||||||
State & Agency - Other - 0.5% | ||||||||
New York Dormitory Authority Rev. (State University) , “B”, FGIC, 5.25%, 5/15/19 | $ | 380,000 | $ | 414,766 | ||||
New York Dormitory Authority Rev., City University System, AMBAC, 5.75%, 7/01/18 | 510,000 | 547,842 | ||||||
$ | 962,608 | |||||||
State & Local Agencies - 10.9% | ||||||||
Delaware Valley, PA, Regional Finance Authority, “C”, FRN, 0.967%, 6/01/37 | $ | 1,430,000 | $ | 1,162,933 | ||||
New York City Educational Construction Fund Rev., “A”, 5.75%, 4/01/33 | 1,860,000 | 2,226,308 |
Issuer | Shares/Par | Value ($) | ||||||
State & Local Agencies - continued | ||||||||
New York Dormitory Authority Rev. (School Program), 6.25%, 7/01/20 | $ | 1,050,000 | $ | 1,055,345 | ||||
New York Dormitory Authority Rev., City University System, “A”, 5.625%, 7/01/16 | 895,000 | 929,064 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt, “A”, 5%, 10/01/20 | 2,000,000 | 2,339,040 | ||||||
New York Dormitory Authority Rev., State Personal Income Tax, “A”, 5%, 12/15/25 | 2,000,000 | 2,401,120 | ||||||
New York Dormitory Authority Rev., State Personal Income Tax, “D”, 5%, 3/15/23 | 1,300,000 | 1,568,151 | ||||||
New York Dormitory Authority Rev., State Personal Income Tax, “D”, 5%, 2/15/40 | 830,000 | 926,156 | ||||||
New York Dormitory Authority Rev., State University Educational Facilities, “A”, 5.875%, 5/15/17 | 1,130,000 | 1,190,817 | ||||||
New York Urban Development Corp. Rev., “D”, 5.625%, 1/01/28 | 2,000,000 | 2,275,960 | ||||||
New York Urban Development Corp. Rev., State Personal Income Tax, “C”, 5%, 12/15/18 | 3,000,000 | 3,388,050 | ||||||
New York Urban Development Corp. Rev., State Personal Income Tax, “C”, 5%, 3/15/28 | 1,000,000 | 1,179,110 | ||||||
United Nations Development Corp., “A”, 5%, 7/01/26 | 500,000 | 556,410 | ||||||
$ | 21,198,464 | |||||||
Tax - Other - 7.6% | ||||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/24 | $ | 270,000 | $ | 299,498 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/29 | 90,000 | 99,712 | ||||||
Hudson Yards, NY, Infrastructure Corp. Rev., “A”, 5.75%, 2/15/47 | 3,000,000 | 3,419,880 | ||||||
New York, NY, City Transitional Finance Authority Building Aid Rev., “S-2A”, 5%, 7/15/40 | 2,000,000 | 2,251,540 | ||||||
New York, NY, City Transitional Finance Authority Building Aid Rev., “S-3”, 5.25%, 1/15/39 | 2,000,000 | 2,219,260 | ||||||
New York, NY, City Transitional Finance Authority Building Aid Rev., “S-5”, 5%, 1/15/32 | 1,000,000 | 1,104,040 | ||||||
New York, NY, City Transitional Finance Authority Rev., “D”, 5%, 2/01/27 | 3,000,000 | 3,447,240 | ||||||
Virgin Islands Public Finance Authority Rev. (Diageo), “A”, 6.625%, 10/01/29 | 605,000 | 676,723 | ||||||
Virgin Islands Public Finance Authority Rev., “A-1”, 5%, 10/01/39 | 1,250,000 | 1,317,550 | ||||||
$ | 14,835,443 | |||||||
Tobacco - 3.5% | ||||||||
Buckeye, OH, Tobacco Settlement Financing Authority, “A-3”, 6.25%, 6/01/37 | $ | 765,000 | $ | 663,110 | ||||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A-2”, 5.3%, 6/01/37 | 1,235,000 | 1,065,175 | ||||||
Illinois Railsplitter Tobacco Settlement Authority, 6%, 6/01/28 | 355,000 | 419,237 |
20
Table of Contents
Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Tobacco - continued | ||||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.5%, 6/01/23 | $ | 460,000 | $ | 462,295 | ||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.75%, 6/01/34 | 645,000 | 498,579 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 5%, 6/01/41 | 1,025,000 | 805,640 | ||||||
New York County Tobacco Trust II, 5.625%, 6/01/35 | 790,000 | 791,090 | ||||||
Suffolk, NY, Tobacco Asset Securitization Corp., Tobacco Settlement, “B”, 5%, 6/01/32 | 750,000 | 817,298 | ||||||
Tobacco Settlement Asset Securitization Corporation, NY, “1”, 5%, 6/01/26 | 400,000 | 405,616 | ||||||
TSASC, Inc., NY, “1”, 5.125%, 6/01/42 | 415,000 | 365,453 | ||||||
Westchester, NY, Tobacco Asset Securitization Corp., 5.125%, 6/01/45 | 500,000 | 484,985 | ||||||
$ | 6,778,478 | |||||||
Toll Roads - 2.0% | ||||||||
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 | $ | 254,518 | ||||
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 | 206,151 | ||||||
Triborough Bridge & Tunnel Authority Rev., NY, “A”, 5%, 1/01/28 | 1,000,000 | 1,163,340 | ||||||
Triborough Bridge & Tunnel Authority Rev., NY, “A-2”, 5%, 11/15/29 | 2,000,000 | 2,225,800 | ||||||
$ | 3,849,809 | |||||||
Transportation - Special Tax - 1.2% | ||||||||
Metropolitan Transportation Authority Rev., NY, “C”, 6.5%, 11/15/28 | $ | 2,000,000 | $ | 2,339,600 | ||||
Universities - Colleges - 18.9% | ||||||||
Albany, NY, Capital Resource Corp. Rev. (Albany College of Pharmacy Project), “A”, 5%, 12/01/33 | $ | 125,000 | $ | 140,218 | ||||
Albany, NY, Capital Resource Corp. Rev. (The College Saint Rose), “A”, 5.625%, 7/01/31 | 1,000,000 | 1,098,320 | ||||||
Dobbs Ferry, NY, Local Development Corp. (Mercy College Project), 5%, 7/01/39 | 1,000,000 | 1,097,960 | ||||||
Hempstead, NY, Local Development Corp. Rev. (Adelphi University), “B”, 5.25%, 2/01/39 | 500,000 | 551,520 | ||||||
Hempstead, NY, Local Development Corp. Rev. (Hofstra University Project), 5%, 7/01/28 | 1,000,000 | 1,115,260 | ||||||
Illinois Finance Authority Rev. (Roosevelt University Project), 6.25%, 4/01/29 | 1,945,000 | 2,121,917 | ||||||
Madison County, NY, Capital Resource Corp. Rev. (Colgate University Project), “B”, 5%, 7/01/26 | 625,000 | 766,463 | ||||||
Madison County, NY, Capital Resource Corp. Rev. (Colgate University Project), “B”, 5%, 7/01/27 | 250,000 | 303,310 |
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
Miami-Dade County, FL, Educational Facilities Authority Rev. (University of Miami), “B”, 5.25%, 4/01/29 | $ | 1,325,000 | $ | 1,606,298 | ||||
Monroe County, NY, Industrial Development Corp. Rev. (University of Rochester Project), “A”, 5%, 7/01/30 | 1,000,000 | 1,181,900 | ||||||
Monroe County, NY, Industrial Development Corp. Rev., “A”, 5%, 7/01/23 | 500,000 | 576,860 | ||||||
Monroe County, NY, Industrial Development Corp. Rev., “A”, 5%, 7/01/24 | 1,000,000 | 1,147,300 | ||||||
New Jersey Educational Facilities Authority Rev. (University of Medicine & Dentistry), “B”, ETM, 6%, 12/01/17 | 985,000 | 1,067,888 | ||||||
New Rochelle, NY, Corp. for Local Development Rev. (Iona College Project), “A”, 5%, 7/01/29 | 340,000 | 386,631 | ||||||
New Rochelle, NY, Corp. for Local Development Rev. (Iona College Project), “A”, 5%, 7/01/30 | 265,000 | 295,965 | ||||||
New Rochelle, NY, Corp. for Local Development Rev. (Iona College Project), “A”, 5%, 7/01/31 | 340,000 | 377,951 | ||||||
New Rochelle, NY, Corp. for Local Development Rev. (Iona College Project), “A”, 5%, 7/01/32 | 800,000 | 885,144 | ||||||
New York Dormitory Authority Rev. (New York University), “1”, AMBAC, 5.5%, 7/01/40 | 1,285,000 | 1,623,944 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (Barnard College), “A”, 5%, 7/01/27 | 500,000 | 594,000 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (Barnard College), “A”, 5%, 7/01/28 | 400,000 | 470,340 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (Brooklyn Law School), 5.75%, 7/01/33 | 600,000 | 670,104 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (Cornell University), “A”, 5%, 7/01/31 | 2,000,000 | 2,068,080 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (Mount Sinai School of Medicine of New York University), 5.125%, 7/01/39 | 2,000,000 | 2,285,600 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (New York University), 5.25%, 7/01/48 | 1,955,000 | 2,186,824 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (Pace University), “A”, 5%, 5/01/38 | 500,000 | 524,745 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (St. John’s University), “A”, 5%, 7/01/27 | 1,535,000 | 1,813,526 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (St. Josephs College), 5.25%, 7/01/35 | 2,000,000 | 2,128,480 |
21
Table of Contents
Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
New York Dormitory Authority Rev., Non-State Supported Debt (The New School), “A”, 5%, 7/01/28 | $ | 650,000 | $ | 766,727 | ||||
Onondaga, NY, Civic Development Corp. Rev. (Le Moyne College Project), 5.375%, 7/01/40 | 2,000,000 | 2,146,460 | ||||||
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 | 68,244 | ||||||
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 | 114,426 | ||||||
Seneca County, NY, Industrial Development Agency, Civic Facilities Rev. (New York Chiropractic), 5%, 10/01/27 | 500,000 | 529,700 | ||||||
St. Lawrence County, NY, Industrial Development Agency Rev. (Clarkson University), 5%, 7/01/31 | 2,225,000 | 2,353,027 | ||||||
Troy, NY, Industrial Development Authority, Civic Facility Rev. (Rensselaer Polytechnic Institute), “E”, 5%, 9/01/31 | 1,000,000 | 1,099,740 | ||||||
Yonkers, NY, Industrial Development Agency, Civic Facilities Rev. (Sarah Lawrence College Project), “A”, 6%, 6/01/41 | 595,000 | 670,868 | ||||||
$ | 36,835,740 | |||||||
Universities - Dormitories - 1.1% | ||||||||
Buffalo & Erie County, NY, Industrial Land Development Corp. Rev. (Buffalo State College), “A”, 5.375%, 10/01/41 | $ | 2,000,000 | $ | 2,210,980 | ||||
Universities - Secondary Schools - 2.5% | ||||||||
Build NYC Resource Corp. Rev. (International Leadership Charter School Project), 6%, 7/01/43 (n) | $ | 750,000 | $ | 717,750 | ||||
Build NYC Resource Corp. Rev. (South Bronx Charter School for International Cultures and the Arts), “A”, 5%, 4/15/43 | 1,000,000 | 1,008,100 | ||||||
Build NYC Resource Corp. Rev. (The Packer Collegiate Institute Project), 5%, 6/01/40 | 675,000 | 748,649 | ||||||
La Vernia, TX, Higher Education Finance Corp. Rev. (Lifeschool of Dallas), “A”, 7.5%, 8/15/41 (Prerefunded 8/15/19) | 535,000 | 660,864 | ||||||
Rensselaer County, NY, Industrial Development Agency, Civic Facility Rev. (Emma Willard School Refunding Project), 5%, 1/01/35 | 500,000 | 556,725 | ||||||
Rensselaer County, NY, Industrial Development Agency, Civic Facility Rev. (Emma Willard School Refunding Project), 5%, 1/01/36 | 645,000 | 713,351 | ||||||
Rensselaer County, NY, Industrial Development Agency, Civic Facility Rev. (Emma Willard School Refunding Project), 5%, 1/01/34 | 450,000 | 501,804 | ||||||
$ | 4,907,243 |
Issuer | Shares/Par | Value ($) | ||||||
Utilities - Municipal Owned - 3.6% | ||||||||
Guam Power Authority Rev., “A”, 5.5%, 10/01/30 | $ | 515,000 | $ | 573,638 | ||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/39 | 155,000 | 176,285 | ||||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/44 | 180,000 | 203,515 | ||||||
Long Island, NY, Power Authority, Electric Systems Rev., “A”, 5%, 5/01/21 | 1,500,000 | 1,729,335 | ||||||
Long Island, NY, Power Authority, Electric Systems Rev., “A”, 6.25%, 4/01/33 | 1,000,000 | 1,149,130 | ||||||
Long Island, NY, Power Authority, Electric Systems Rev., “A”, 6%, 5/01/33 | 2,000,000 | 2,300,720 | ||||||
Puerto Rico Electric Power Authority Rev., “RR”, NATL, 5%, 7/01/22 | 885,000 | 867,566 | ||||||
$ | 7,000,189 | |||||||
Utilities - Other - 0.8% | ||||||||
Public Authority for Colorado Energy Natural Gas Purchase Rev., 6.5%, 11/15/38 | $ | 1,085,000 | $ | 1,428,674 | ||||
Texas Gas Acquisition & Supply Corp III., Gas Supply Rev., 5%, 12/15/31 | 115,000 | 124,755 | ||||||
$ | 1,553,429 | |||||||
Water & Sewer Utility Revenue - 4.5% | ||||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5.625%, 7/01/40 | $ | 315,000 | $ | 344,635 | ||||
Mississippi Development Bank Special Obligation (City of Jackson Water and Sewer System Rev. Bond Project), AGM, 6.875%, 12/01/40 | 100,000 | 127,865 | ||||||
New York Environmental Facilities Corp., Clean Water & Drinking Rev., “B”, 5%, 6/15/33 | 2,140,000 | 2,343,471 | ||||||
New York, NY, Municipal Water & Sewer Finance Authority Rev., 4.75%, 6/15/30 | 1,245,000 | 1,321,505 | ||||||
New York, NY, Municipal Water Finance Authority, Water & Sewer Systems Rev., “DD”, 5%, 6/15/34 | 2,000,000 | 2,295,620 | ||||||
New York, NY, Municipal Water Finance Authority, Water & Sewer Systems Rev., “GG”, 5%, 6/15/28 | 2,000,000 | 2,414,460 | ||||||
$ | 8,847,556 | |||||||
Total Municipal Bonds (Identified Cost, $173,073,083) | $ | 186,609,620 | ||||||
Money Market Funds - 2.3% | ||||||||
MFS Institutional Money Market Portfolio, 0.12%, at Cost and Net Asset Value (v) | 4,374,684 | $ | 4,374,684 | |||||
Total Investments (Identified Cost, $177,447,767) | $ | 190,984,304 | ||||||
Other Assets, Less Liabilities - 1.9% | 3,726,637 | |||||||
Net Assets - 100.0% | $ | 194,710,941 |
See Portfolio Footnotes and Notes to Financial Statements
22
Table of Contents
PORTFOLIO OF INVESTMENTS
9/30/15 (unaudited)
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 - 97.6% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 4.3% | ||||||||
Charlotte, NC, Airport Rev. (Charlotte/Douglas International Airport), AMBAC, 5%, 7/01/23 | $ | 1,430,000 | $ | 1,531,015 | ||||
Charlotte, NC, Airport Rev., “A”, 4.75%, 7/01/28 | 1,250,000 | 1,368,500 | ||||||
Charlotte, NC, Airport Rev., “A”, 5%, 7/01/36 | 3,000,000 | 3,308,070 | ||||||
Charlotte, NC, Douglas International Airport Rev, “A”, 5%, 7/01/32 | 1,245,000 | 1,431,240 | ||||||
Chicago, IL, O’Hare International Airport Rev., Third Lien, “A”, 5.625%, 1/01/35 | 1,055,000 | 1,209,589 | ||||||
Dallas and Fort Worth, TX, International Airport Rev., “B”, 5%, 11/01/44 | 440,000 | 484,572 | ||||||
Dallas and Fort Worth, TX, International Airport Rev., “C”, 5%, 11/01/45 | 305,000 | 333,371 | ||||||
Raleigh Durham, NC, Airport Authority Rev., “A”, 5%, 5/01/36 | 3,440,000 | 3,871,858 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, 5%, 12/01/44 | 175,000 | 190,697 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, BAM, 5%, 12/01/39 | 195,000 | 215,668 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/39 | 150,000 | 158,811 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/44 | 240,000 | 252,605 | ||||||
$ | 14,355,996 | |||||||
General Obligations - General Purpose - 2.1% | ||||||||
Buncombe County, NC, Limited Obligation, 5%, 6/01/28 | $ | 1,450,000 | $ | 1,745,104 | ||||
Guam Government, “A”, 6.75%, 11/15/29 | 240,000 | 293,990 | ||||||
Guam Government, “A”, 7%, 11/15/39 | 265,000 | 327,156 | ||||||
Mecklenburg County, NC, “A”, 5%, 8/01/18 | 2,100,000 | 2,348,682 | ||||||
New Hanover County, NC, Public Improvement, “A”, 5%, 8/01/30 | 2,000,000 | 2,287,360 | ||||||
$ | 7,002,292 | |||||||
General Obligations - Schools - 3.0% | ||||||||
Johnston County, NC, “B”, 5%, 2/01/18 | $ | 1,425,000 | $ | 1,567,999 | ||||
Moorpark, CA, Unified School District (Election of 2008), Capital Appreciation, “B”, AGM, 0%, 8/01/36 | 3,705,000 | 1,508,306 | ||||||
Wake County, NC, “C”, 5%, 3/01/24 | 5,570,000 | 6,910,866 | ||||||
$ | 9,987,171 | |||||||
Healthcare Revenue - Hospitals - 20.7% | ||||||||
Albemarle, NC, Hospital Authority Health Care Facilities Rev., 5.25%, 10/01/38 (Prerefunded 10/01/17) | $ | 2,000,000 | $ | 2,177,080 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Charlotte-Mecklenburg, NC, Hospital Authority Health Care System Rev. (Carolinas Health Care System), “A”, 5%, 1/15/31 | $ | 1,000,000 | $ | 1,042,750 | ||||
Charlotte-Mecklenburg, NC, Hospital Authority Health Care System Rev. (Carolinas Health Care System), “A”, 5.25%, 1/15/34 | 4,000,000 | 4,410,160 | ||||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 7%, 8/15/44 (Prerefunded 8/15/19) | 1,140,000 | 1,395,440 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.25%, 7/01/31 | 360,000 | 412,168 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.375%, 7/01/41 | 525,000 | 594,694 | ||||||
Louisville & Jefferson County, KY, Metropolitan Government Healthcare Systems Rev. (Norton Healthcare, Inc.), 5.25%, 10/01/36 | 1,820,000 | 1,866,337 | ||||||
Miami-Dade County, FL, Health Facilities Authority Hospital Rev. (Variety Children’s Hospital), “A”, 6%, 8/01/30 | 310,000 | 358,664 | ||||||
Michigan Hospital Finance Authority Rev. (Henry Ford Health System), 5.75%, 11/15/39 | 1,450,000 | 1,640,255 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6%, 10/01/27 | 790,000 | 883,986 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6.125%, 10/01/39 | 1,110,000 | 1,226,239 | ||||||
New Hampshire Business Finance Authority Rev. (Huggins Hospital), 6.875%, 10/01/39 | 55,000 | 58,884 | ||||||
North Carolina Hospital Authority Mortgage Rev. (Johnston Memorial), AGM, 5.25%, 10/01/36 | 1,960,000 | 2,174,150 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Appalachian Regional Healthcare System), “A”, 6.375%, 7/01/26 | 2,000,000 | 2,346,060 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Appalachian Regional Healthcare System), “A”, 6.5%, 7/01/31 | 1,000,000 | 1,158,980 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Cleveland County HealthCare System), 5.75%, 1/01/35 (Prerefunded 1/01/21) | 800,000 | 978,352 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Duke University Health System), “A”, 5%, 6/01/35 | 1,620,000 | 1,789,112 |
23
Table of Contents
Portfolio of Investments (unaudited) – 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 | $ | 3,894,380 | ||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Duke University Health System), “A”, 5%, 6/01/42 | 2,420,000 | 2,705,850 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Novant Health Obligation Group), “A”, 5.25%, 11/01/40 | 3,000,000 | 3,343,080 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Rex Healthcare), “A”, 5%, 7/01/30 | 5,250,000 | 5,817,158 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Vidant Health), 5%, 6/01/33 | 3,000,000 | 3,311,880 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (WakeMed), “A”, 5%, 10/01/31 | 4,355,000 | 4,803,086 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev., “A”, 5%, 10/01/38 | 1,825,000 | 1,980,727 | ||||||
North Carolina Medical Care Commission, Health System Rev. (Mission Health Combined Group), 5%, 10/01/36 | 2,000,000 | 2,262,160 | ||||||
North Carolina Medical Care Commission, Health System Rev. (Mission Health System, Inc.), 5%, 10/01/25 | 1,600,000 | 1,739,088 | ||||||
North Carolina Medical Care Commission, Hospital Rev. (The North Carolina Baptist Hospitals, Inc.), 5.25%, 6/01/29 | 2,215,000 | 2,489,084 | ||||||
North Carolina Medical Care Commission, Hospital Rev. (The North Carolina Baptist Hospitals, Inc.), 5%, 6/01/34 | 2,000,000 | 2,196,780 | ||||||
North Carolina Medical Care Commission, Hospital Rev. (Wilson Memorial Hospital), Capital Appreciation, AMBAC, 0%, 11/01/15 | 1,140,000 | 1,139,840 | ||||||
Northern Hospital District, Surry County, NC, Health Care Facilities Rev., 6.25%, 10/01/38 | 1,000,000 | 1,069,810 | ||||||
Onslow County, NC, Hospital Authority (Onslow Memorial Hospital Project), NATL, 5%, 10/01/26 | 1,155,000 | 1,195,021 | ||||||
Royal Oak, MI, Hospital Finance Authority Rev. (William Beaumont Hospital), “V”, 8.25%, 9/01/39 (Prerefunded 9/01/18) | 2,040,000 | 2,474,112 | ||||||
St. Petersburg, FL, Health Facilities Authority Rev., 6.5%, 11/15/39 | 470,000 | 571,435 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 6.75%, 7/01/29 (Prerefunded 7/01/19) | 270,000 | 325,593 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 7%, 7/01/39 (Prerefunded 7/01/19) | 635,000 | 771,563 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (ProHealth Care, Inc. Obligated Group), 6.625%, 2/15/39 (Prerefunded 2/15/19) | 2,195,000 | 2,605,948 | ||||||
$ | 69,209,906 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Long Term Care - 2.6% | ||||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Pennybyrn at Maryfield), 5%, 10/01/35 | $ | 1,500,000 | $ | 1,562,910 | ||||
North Carolina Medical Care Commission, Retirement Facilities First Mortgage Rev. (Salemtowne Project), 5.25%, 10/01/37 | 1,500,000 | 1,531,005 | ||||||
North Carolina Medical Care Commission, Retirement Facilities First Mortgage Rev. (United Church Homes and Services), “A”, 5%, 9/01/37 | 1,500,000 | 1,505,610 | ||||||
North Carolina Medical Care Commission, Retirement Facilities Rev. (Galloway Ridge Project), “A”, 5.875%, 1/01/31 | 480,000 | 510,643 | ||||||
North Carolina Medical Care Commission, Retirement Facilities Rev. (Galloway Ridge Project), “A”, 6%, 1/01/39 | 1,520,000 | 1,625,427 | ||||||
North Carolina Medical Care Commission, Retirement Facilities Rev. (The United Methodist Retirement Homes), “A”, 5%, 10/01/33 | 1,590,000 | 1,632,389 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), “A”, 7.25%, 9/15/29 | 35,000 | 41,187 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), “A”, 7.625%, 9/15/39 | 220,000 | 260,132 | ||||||
$ | 8,669,303 | |||||||
Human Services - 0.3% | ||||||||
North Carolina Medical Care Commission, Health Care Facilities Rev., “A” (ARC Projects), 5.8%, 10/01/34 | $ | 1,000,000 | $ | 1,002,420 | ||||
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 | $ | 1,117,120 | ||||
Miscellaneous Revenue - Other - 2.3% | ||||||||
Durham County, NC, Industrial Facilities & Pollution Control Financing Authority Rev. (Research Triangle Institute), 5%, 2/01/25 | $ | 1,000,000 | $ | 1,221,490 | ||||
Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/40 | 420,000 | 440,454 | ||||||
Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/44 | 640,000 | 668,582 | ||||||
New York Liberty Development Corp., Liberty Rev. (3 World Trade Center Project), “1”, 5%, 11/15/44 | 1,700,000 | 1,717,034 | ||||||
New York Liberty Development Corp., Liberty Rev. (7 World Trade Center Project), 5%, 9/15/40 | 3,145,000 | 3,603,132 |
24
Table of Contents
Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Miscellaneous Revenue - Other - continued | ||||||||
Summit County, OH, Port Authority Building Rev. (Flats East Development Recovery Zone Facility Bonds), 6.875%, 5/15/40 | $ | 100,000 | $ | 112,409 | ||||
$ | 7,763,101 | |||||||
Multi-Family Housing Revenue - 0.2% | ||||||||
Mecklenburg County, NC (Little Rock Apartments), FNMA, 5.15%, 1/01/22 | $ | 730,000 | $ | 753,316 | ||||
Port Revenue - 0.3% | ||||||||
North Carolina Ports Authority Facilities Rev., “A”, 5.25%, 2/01/40 | $ | 1,000,000 | $ | 1,121,220 | ||||
Sales & Excise Tax Revenue - 1.9% | ||||||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6.5%, 1/15/30 | $ | 1,675,000 | $ | 1,946,115 | ||||
Guam Government Business Privilege Tax Rev., “A”, 5.25%, 1/01/36 | 1,140,000 | 1,252,450 | ||||||
Guam Government Business Privilege Tax Rev., “D”, 5%, 11/15/31 | 2,385,000 | 2,655,411 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “A”, 5.5%, 8/01/28 (Prerefunded 8/01/19) | 15,000 | 17,445 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “C”, 5.25%, 8/01/40 | 970,000 | 606,269 | ||||||
$ | 6,477,690 | |||||||
Single Family Housing - State - 1.5% | ||||||||
North Carolina Housing Finance Agency Rev., “23-A”, 4.8%, 1/01/37 | $ | 1,160,000 | $ | 1,164,141 | ||||
North Carolina Housing Finance Agency Rev., “24-A”, 4.75%, 7/01/26 | 1,260,000 | 1,264,347 | ||||||
North Carolina Housing Finance Agency Rev., “29-A”, 4.85%, 7/01/38 | 1,205,000 | 1,218,653 | ||||||
North Carolina Housing Finance Agency Rev., “31-A”, 5.25%, 7/01/38 | 1,285,000 | 1,322,394 | ||||||
$ | 4,969,535 | |||||||
State & Local Agencies - 14.2% | ||||||||
Asheville, NC, Limited Obligation, 5%, 4/01/28 | $ | 400,000 | $ | 459,416 | ||||
Charlotte, NC, COP (NASCAR Hall of Fame), “C”, 5%, 6/01/39 | 5,130,000 | 5,658,082 | ||||||
Charlotte, NC, COP (Transit Projects), 5%, 6/01/33 | 3,000,000 | 3,252,810 | ||||||
Charlotte, NC, COP (Transit Projects/Phase II), “B”, 5%, 6/01/26 | 1,250,000 | 1,507,475 | ||||||
Charlotte, NC, COP, “E”, 5%, 6/01/26 | 760,000 | 836,380 | ||||||
Charlotte, NC, COP, “E”, 5%, 6/01/34 | 2,000,000 | 2,205,880 | ||||||
Chatham County, NC, Limited Obligation Bond, 5%, 11/01/28 | 2,345,000 | 2,787,314 | ||||||
Delaware Valley, PA, Regional Finance Authority, “C”, FRN, 0.967%, 6/01/37 | 2,310,000 | 1,878,584 | ||||||
Harnett County, NC, 5%, 6/01/28 | 45,000 | 45,169 | ||||||
Harnett County, NC, COP, ASSD GTY, 5%, 6/01/29 | 400,000 | 439,388 |
Issuer | Shares/Par | Value ($) | ||||||
State & Local Agencies - continued | ||||||||
Iredell County, NC, Public Facilities (School Projects), AGM, 5.125%, 6/01/27 | $ | 3,230,000 | $ | 3,548,543 | ||||
Mecklenburg County, NC, COP, “A”, 5%, 2/01/28 | 350,000 | 396,407 | ||||||
Mooresville, NC, Certificates of Participation, 5%, 9/01/32 | 3,120,000 | 3,380,083 | ||||||
Nash County, NC, Limited Obligation, ASSD GTY, 5%, 10/01/30 | 2,000,000 | 2,273,820 | ||||||
North Carolina Capital Improvement Obligation, “A”, 5%, 5/01/26 (Prerefunded 5/01/19) | 1,450,000 | 1,654,552 | ||||||
Orange County, NC, Public Facilities Co., Limited Obligation, 5%, 10/01/24 | 750,000 | 888,435 | ||||||
Pitt County, NC, Limited Obligation, “A”, 5%, 4/01/35 | 2,000,000 | 2,152,460 | ||||||
Salisbury, NC, COP, ASSD GTY, 5.625%, 3/01/26 | 1,000,000 | 1,108,020 | ||||||
Wake County, NC, Annual Appropriation Ltd., Obligation Bonds, “2009”, 5%, 6/01/32 | 3,000,000 | 3,352,770 | ||||||
Wake County, NC, Annual Appropriation Ltd., Obligation Bonds, “2010”, 5%, 1/01/33 | 6,000,000 | 6,830,040 | ||||||
Wilmington, NC, COP, “A”, 5%, 6/01/38 | 2,650,000 | 2,870,427 | ||||||
$ | 47,526,055 | |||||||
Tax - Other - 1.5% | ||||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/24 | $ | 420,000 | $ | 465,885 | ||||
Guam Government Ltd. Obligation Rev., “A��, 5.625%, 12/01/29 | 145,000 | 160,647 | ||||||
Virgin Islands Public Finance Authority Rev. (Diageo), “A”, 6.625%, 10/01/29 | 1,005,000 | 1,124,143 | ||||||
Virgin Islands Public Finance Authority Rev., “A-1”, 5%, 10/01/29 | 305,000 | 326,063 | ||||||
Virgin Islands Public Finance Authority Rev., “A-1”, 5%, 10/01/39 | 350,000 | 368,914 | ||||||
Virgin Islands Public Finance Authority Rev., “B”, 5%, 10/01/25 | 305,000 | 334,725 | ||||||
Virgin Islands Public Finance Authority Rev., Matching Fund Loan Note, “A”, 5%, 10/01/29 | 2,090,000 | 2,267,671 | ||||||
$ | 5,048,048 | |||||||
Tax Assessment - 0.3% | ||||||||
Mooresville, NC, Special Assessment Rev., 5.375%, 3/01/40 | $ | 1,000,000 | $ | 1,007,380 | ||||
Tobacco - 1.4% | ||||||||
Buckeye, OH, Tobacco Settlement Financing Authority, “A-3”, 6.25%, 6/01/37 | $ | 1,295,000 | $ | 1,122,519 | ||||
Illinois Railsplitter Tobacco Settlement Authority, 6%, 6/01/28 | 1,975,000 | 2,332,376 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.5%, 6/01/23 | 940,000 | 944,691 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.75%, 6/01/34 | 540,000 | 417,415 | ||||||
$ | 4,817,001 |
25
Table of Contents
Portfolio of Investments (unaudited) – 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 | $ | 435,000 | $ | 540,074 | ||||
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 | 424,428 | ||||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 6%, 1/01/37 | 725,000 | 818,793 | ||||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 5.5%, 1/01/42 | 1,160,000 | 1,259,006 | ||||||
$ | 3,042,301 | |||||||
Transportation - Special Tax - 4.2% | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “CC”, AGM, 5.5%, 7/01/28 | $ | 1,715,000 | $ | 1,703,835 | ||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ETM, AGM, 6%, 7/01/18 | 5,810,000 | 6,319,363 | ||||||
North Carolina Turnpike Authority, Monroe Connector System State Appropriation Rev., 5%, 7/01/28 | 2,300,000 | 2,639,549 | ||||||
North Carolina Turnpike Authority, Monroe Connector System State Appropriation Rev., 5%, 7/01/36 | 3,000,000 | 3,388,230 | ||||||
$ | 14,050,977 | |||||||
Universities - Colleges - 15.1% | ||||||||
Appalachian State University, NC, Rev., 4%, 10/01/19 | $ | 1,080,000 | $ | 1,198,724 | ||||
Florida State University Board of Governors, System Improvement Rev., 6.25%, 7/01/30 | 1,000,000 | 1,137,940 | ||||||
Illinois Finance Authority Rev. (Roosevelt University Project), 6.25%, 4/01/29 | 2,000,000 | 2,181,920 | ||||||
New Jersey Educational Facilities Authority Rev. (University of Medicine & Dentistry), “B”, ETM, 6%, 12/01/17 | 1,545,000 | 1,675,012 | ||||||
North Carolina Capital Facilities Finance Agency, Educational Facilities Rev. (High Point University), 5.25%, 3/01/33 | 1,000,000 | 1,083,620 | ||||||
North Carolina Capital Facilities Finance Agency, Educational Facilities Rev. (Wake Forest University), 5%, 1/01/28 | 980,000 | 1,089,466 | ||||||
North Carolina Capital Facilities Finance Agency, Educational Facilities Rev. (Wake Forest University), 5%, 1/01/29 | 865,000 | 961,032 | ||||||
North Carolina Capital Facilities Finance Agency, Educational Facilities Rev. (Wake Forest University), 5%, 1/01/31 | 2,000,000 | 2,211,300 | ||||||
North Carolina Capital Facilities Finance Agency, Educational Facilities Rev. (Wake Forest University), 5%, 1/01/38 | 1,000,000 | 1,103,640 |
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
North Carolina Capital Facilities, Finance Agency Rev. (Davidson College), 5%, 3/01/45 | $ | 1,500,000 | $ | 1,665,630 | ||||
North Carolina Capital Facilities, Finance Agency Rev. (Duke University), “A”, 5%, 10/01/38 | 2,500,000 | 2,782,575 | ||||||
North Carolina Capital Facilities, Finance Agency Rev. (Meredith College), 6%, 6/01/31 | 3,240,000 | 3,454,780 | ||||||
Pinellas County, FL, Educational Facilities Authority Rev. (Barry University), 6%, 10/01/41 | 450,000 | 502,434 | ||||||
Puerto Rico Industrial Tourist Authority (University Plaza), “A”, NATL, 5%, 7/01/20 | 2,180,000 | 2,166,658 | ||||||
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 | 145,019 | ||||||
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 | 233,090 | ||||||
Puerto Rico Industrial, Tourist, Medical, & Environmental Central Facilities (University of Sacred Heart), 4.375%, 10/01/31 | 115,000 | 84,320 | ||||||
Puerto Rico Industrial, Tourist, Medical, & Environmental Central Facilities (University of Sacred Heart), 5%, 10/01/42 | 55,000 | 40,217 | ||||||
University of North Carolina, Chapel Hill, 5%, 12/01/31 | 3,250,000 | 3,522,577 | ||||||
University of North Carolina, Chapel Hill, “A”, ASSD GTY, 5%, 4/01/34 | 200,000 | 221,096 | ||||||
University of North Carolina, Charlotte, Rev., 5%, 4/01/43 | 1,715,000 | 1,910,784 | ||||||
University of North Carolina, Greensboro, Rev., 5%, 4/01/26 | 3,000,000 | 3,442,380 | ||||||
University of North Carolina, Greensboro, Rev., 5%, 4/01/39 | 2,000,000 | 2,259,780 | ||||||
University of North Carolina, Raleigh, Rev., “A”, 5%, 10/01/29 | 5,000,000 | 5,881,700 | ||||||
University of North Carolina, Systems Pool Rev. (General Trust Indenture), “C”, 5.5%, 10/01/34 | 1,890,000 | 2,118,085 | ||||||
University of North Carolina, Systems Pool Rev., “B”, 5.125%, 10/01/34 | 2,000,000 | 2,225,000 | ||||||
University of North Carolina, Systems Pool Rev., “B-1”, 5.25%, 4/01/24 | 1,615,000 | 1,885,803 | ||||||
University of North Carolina, Systems Pool Rev., “B-1”, 5.25%, 4/01/25 | 1,705,000 | 1,987,655 | ||||||
Virginia College Building Authority, Educational Facilities Rev. (Marymount University), “B”, 5.25%, 7/01/35 | 195,000 | 203,765 | ||||||
Winston-Salem State University, NC, General Rev., 5%, 4/01/33 | 1,000,000 | 1,096,920 | ||||||
$ | 50,472,922 |
26
Table of Contents
Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Universities - Dormitories - 2.1% | ||||||||
University of North Carolina, Wilmington, COP (Student Housing Project), FGIC, 5%, 6/01/28 | $ | 1,825,000 | $ | 1,882,925 | ||||
University of North Carolina, Wilmington, Limited Obligation, Refunding Student Housing Projects, 5%, 6/01/28 | 3,045,000 | 3,522,060 | ||||||
Winston-Salem State University, NC, Student Housing Project Rev., 5%, 6/01/29 | 1,550,000 | 1,711,510 | ||||||
$ | 7,116,495 | |||||||
Utilities - Cogeneration - 0.1% | ||||||||
California Pollution Control Financing Authority, Water Furnishing Rev. (San Diego County Water Desalination Project Pipeline), 5%, 11/21/45 | $ | 450,000 | $ | 462,902 | ||||
Utilities - Municipal Owned - 6.4% | ||||||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/20 | $ | 1,000,000 | $ | 1,162,310 | ||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/21 | 1,000,000 | 1,176,010 | ||||||
Long Island, NY, Power Authority, Electric Systems Rev., “A”, 6%, 5/01/33 | 520,000 | 598,187 | ||||||
North Carolina Eastern Municipal Power Agency, AMBAC, 6%, 1/01/18 | 14,245,000 | 15,895,283 | ||||||
North Carolina Municipal Power Agency, Catawba Electric Rev., “A”, 5%, 1/01/30 | 2,500,000 | 2,759,100 | ||||||
$ | 21,590,890 | |||||||
Utilities - Other - 1.8% | ||||||||
California M-S-R Energy Authority Gas Rev., “A”, 6.5%, 11/01/39 | $ | 1,695,000 | $ | 2,263,283 | ||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/19 | 1,055,000 | 1,184,048 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/26 | 1,290,000 | 1,494,646 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “C”, 5%, 2/01/21 | 805,000 | 897,680 | ||||||
Texas Gas Acquisition & Supply Corp III., Gas Supply Rev., 5%, 12/15/31 | 255,000 | 276,632 | ||||||
$ | 6,116,289 | |||||||
Water & Sewer Utility Revenue - 10.1% | ||||||||
Asheville, NC, Water & Sewer Systems Rev., NATL, 5%, 8/01/32 | $ | 1,000,000 | $ | 1,079,800 | ||||
Cape Fear Public Utility Authority, Water & Sewer System Rev., 5%, 6/01/40 | 1,250,000 | 1,424,188 | ||||||
Cape Fear Public Utility Authority, Water & Sewer System Rev., 5%, 8/01/35 | 3,000,000 | 3,308,430 | ||||||
Cape Fear Public Utility Authority, Water & Sewer System Rev., 5%, 8/01/36 | 4,410,000 | 4,956,664 | ||||||
Durham County, NC, Enterprise Systems Rev., 5%, 6/01/29 | 1,590,000 | 1,826,942 | ||||||
Fayetteville, NC, Public Works Commission Rev., “B”, 5%, 3/01/35 | 1,750,000 | 1,939,420 | ||||||
Greenville, NC, Utilities Commission, Combined Enterprise System Rev., “A”, AGM, 5%, 11/01/33 | 2,400,000 | 2,620,536 |
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - continued | ||||||||
High Point, NC, Combined Enterprise System Rev., AGM, 5%, 11/01/33 | $ | 2,000,000 | $ | 2,212,960 | ||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “C-7”, NATL, 5%, 7/01/32 | 95,000 | 103,712 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “D-1”, AGM, 5%, 7/01/35 | 60,000 | 65,689 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “D-1”, AGM, 5%, 7/01/37 | 140,000 | 152,510 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “D-6”, NATL, 5%, 7/01/36 | 115,000 | 124,032 | ||||||
Oak Island, NC, Enterprise System Rev., AGM, 5%, 6/01/29 | 1,400,000 | 1,641,150 | ||||||
Oak Island, NC, Enterprise System Rev., ASSD GTY, 5.625%, 6/01/30 | 500,000 | 577,205 | ||||||
Oak Island, NC, Enterprise System Rev., AGM, 5%, 6/01/31 | 1,600,000 | 1,855,136 | ||||||
Oak Island, NC, Enterprise System Rev., ASSD GTY, 6%, 6/01/34 | 1,000,000 | 1,178,170 | ||||||
Oak Island, NC, Enterprise System Rev., ASSD GTY, 5.75%, 6/01/36 | 800,000 | 926,536 | ||||||
Raleigh, NC, Combined Enterprise Systems Rev., “A”, 5%, 3/01/29 | 3,145,000 | 3,688,330 | ||||||
Winston-Salem, NC, Water & Sewer Systems Rev., 5%, 6/01/34 | 2,000,000 | 2,246,580 | ||||||
Winston-Salem, NC, Water & Sewer Systems Rev., “A”, 5%, 6/01/31 | 750,000 | 885,690 | ||||||
Winston-Salem, NC, Water & Sewer Systems Rev., “A”, 5%, 6/01/32 | 750,000 | 882,517 | ||||||
$ | 33,696,197 | |||||||
Total Municipal Bonds (Identified Cost, $304,535,230) | $ | 327,376,527 | ||||||
Money Market Funds - 1.0% | ||||||||
MFS Institutional Money Market Portfolio, 0.12%, at Cost and Net Asset Value (v) | 3,268,186 | $ | 3,268,186 | |||||
Total Investments (Identified Cost, $307,803,416) | $ | 330,644,713 | ||||||
Other Assets, Less Liabilities - 1.4% | 4,601,763 | |||||||
Net Assets - 100.0% | $ | 335,246,476 |
See Portfolio Footnotes and Notes to Financial Statements
27
Table of Contents
PORTFOLIO OF INVESTMENTS
9/30/15 (unaudited)
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 - 97.5% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport and Port Revenue - 2.5% | ||||||||
Chicago, IL, O’Hare International Airport Rev., Third Lien, “A”, 5.625%, 1/01/35 | $ | 335,000 | $ | 384,083 | ||||
Philadelphia, PA, Airport Rev., “A”, AGM, 5%, 6/15/40 | 2,000,000 | 2,192,320 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, 5%, 12/01/44 | 55,000 | 59,934 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, BAM, 5%, 12/01/39 | 65,000 | 71,889 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/39 | 45,000 | 47,643 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/44 | 80,000 | 84,202 | ||||||
$ | 2,840,071 | |||||||
General Obligations - General Purpose - 8.2% | ||||||||
Cambria County, PA, BAM, 5%, 8/01/20 | $ | 1,000,000 | $ | 1,149,550 | ||||
Commonwealth of Pennsylvania, 5%, 4/15/19 | 1,000,000 | 1,127,640 | ||||||
Commonwealth of Pennsylvania, 5%, 6/01/20 | 1,500,000 | 1,729,890 | ||||||
Commonwealth of Puerto Rico, “A”, NATL, 5.5%, 7/01/20 | 315,000 | 313,063 | ||||||
Guam Government, “A”, 6.75%, 11/15/29 | 75,000 | 91,872 | ||||||
Guam Government, “A”, 7%, 11/15/39 | 90,000 | 111,110 | ||||||
Luzerne County, PA, AGM, 6.75%, 11/01/23 | 460,000 | 543,232 | ||||||
Penn Hills, PA, Capital Appreciation, “D”, 0%, 12/01/32 | 595,000 | 321,913 | ||||||
Philadelphia, PA, Redevelopment Authority City Agreement Rev., “A”, 5%, 4/15/28 | 1,000,000 | 1,137,030 | ||||||
Philadelphia, PA, Redevelopment Authority Rev., BAM, 5%, 4/15/24 | 1,000,000 | 1,143,130 | ||||||
Puerto Rico Public Buildings Authority Rev., “H”, AMBAC, 5.5%, 7/01/17 | 380,000 | 377,465 | ||||||
Puerto Rico Public Buildings Authority Rev., “H”, AMBAC, 5.5%, 7/01/18 | 275,000 | 271,530 | ||||||
Township of Cranberry Butler County, PA, 5%, 10/01/35 | 1,000,000 | 1,159,540 | ||||||
$ | 9,476,965 | |||||||
General Obligations - Schools - 11.1% | ||||||||
Carlisle, PA, School District, 5%, 9/01/26 | $ | 1,000,000 | $ | 1,139,970 | ||||
Conneaut, PA, School District, Capital Appreciation, “B”, AGM, 0%, 11/01/31 | 1,150,000 | 669,657 | ||||||
Conneaut, PA, School District, Capital Appreciation, “B”, AGM, 0%, 11/01/33 | 760,000 | 409,389 | ||||||
Daniel Boone, PA, School District Rev., 5%, 8/15/32 (Prerefunded 8/15/18) | 160,000 | 178,747 | ||||||
Daniel Boone, PA, School District Rev., 5%, 8/15/32 (Prerefunded 8/15/18) | 110,000 | 122,889 |
Issuer | Shares/Par | Value ($) | ||||||
General Obligations - Schools - continued | ||||||||
Daniel Boone, PA, School District Rev., 5%, 8/15/32 | $ | 230,000 | $ | 250,387 | ||||
Deer Lakes, PA, School District, ASSD GTY, 5.375%, 4/01/34 | 1,275,000 | 1,429,301 | ||||||
Northampton County, PA, Area School District, “A”, 5%, 10/01/33 | 1,000,000 | 1,133,580 | ||||||
Northampton County, PA, Area School District, “A”, 5%, 10/01/34 | 1,210,000 | 1,367,542 | ||||||
Pittsburgh, PA, School District, “B”, 5%, 9/01/21 | 1,000,000 | 1,171,740 | ||||||
Reading, PA, School District, “A”, 5%, 4/01/18 | 1,000,000 | 1,074,790 | ||||||
Reading, PA, School District, “A”, 5%, 4/01/20 | 665,000 | 739,433 | ||||||
Scranton, PA, School District, “A”, AGM, 5%, 7/15/27 | 1,340,000 | 1,417,546 | ||||||
West Chester, PA, Area School District, “A”, 5%, 5/15/24 | 500,000 | 619,640 | ||||||
Whitehall-Coplay, PA, School District, “A”, AGM, 5.375%, 11/15/34 | 1,000,000 | 1,081,680 | ||||||
$ | 12,806,291 | |||||||
Healthcare Revenue - Hospitals - 19.0% | ||||||||
Allegheny County, PA, Hospital Development Authority Rev. (University of Pittsburgh Medical Center), 5%, 9/01/18 | $ | 500,000 | $ | 556,880 | ||||
Allegheny County, PA, Hospital Development Authority Rev. (University of Pittsburgh Medical Center), “A”, 5.375%, 8/15/29 | 1,000,000 | 1,118,320 | ||||||
Berks County, PA, Municipal Authority Rev. (Reading Hospital & Medical Center), “A”, 5%, 11/01/40 | 1,500,000 | 1,630,365 | ||||||
Butler County, PA, Hospital Authority Rev. (Butler Health System), 7.25%, 7/01/39 (Prerefunded 7/01/19) | 500,000 | 612,110 | ||||||
Centre County, PA, Hospital Authority Rev. (Mount Nittany Medical Center), 6.25%, 11/15/41 | 500,000 | 578,770 | ||||||
Chester County, PA, Health & Educational Facilities Authority Rev. (Chester County Junior High School), “A”, 5%, 5/15/40 | 1,000,000 | 1,092,510 | ||||||
Dauphin County, PA, General Authority Health System Rev. (Pinnacle Health System), “A”, 5.75%, 6/01/20 | 750,000 | 860,910 | ||||||
DeKalb County, GA, Hospital Authority Rev. (DeKalb Medical Center, Inc.), 6.125%, 9/01/40 | 305,000 | 331,166 | ||||||
Escambia County, FL, Health Facilities Authority (Baptist Hospital, Inc.), “A”, 6%, 8/15/36 | 705,000 | 798,180 | ||||||
Geisinger Authority, PA, Health System Rev., “A”, 5.125%, 6/01/34 | 1,000,000 | 1,096,240 | ||||||
Illinois Finance Authority Rev. (Provena Health), “A”, 6%, 5/01/28 | 500,000 | 574,200 |
28
Table of Contents
Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.25%, 7/01/31 | $ | 165,000 | $ | 188,910 | ||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.375%, 7/01/41 | 150,000 | 169,913 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 5.75%, 6/01/25 | 335,000 | 381,438 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6.375%, 6/01/40 | 390,000 | 441,195 | ||||||
Lehigh County, PA, General Purpose Authority Hospital Rev. (Lehigh Valley Hospital), NATL, 7%, 7/01/16 | 45,000 | 46,848 | ||||||
Lycoming County, PA, Health Authority Rev. (Susquehanna Health System), “A”, 5.75%, 7/01/39 | 750,000 | 808,545 | ||||||
Miami-Dade County, FL, Health Facilities Authority Hospital Rev. (Variety Children’s Hospital), “A”, 6%, 8/01/30 | 105,000 | 121,483 | ||||||
Monroe County, PA, Hospital Authority Rev. (Pocono Medical Center), 5%, 1/01/27 | 250,000 | 259,828 | ||||||
Monroe County, PA, Hospital Authority Rev. (Pocono Medical Center), 5.125%, 1/01/37 | 250,000 | 259,200 | ||||||
Montgomery County, PA, Industrial Development Authority Rev. (Albert Einstein Healthcare Network Issue), “A”, 5.25%, 1/15/30 | 500,000 | 542,820 | ||||||
New Hampshire Business Finance Authority Rev. (Huggins Hospital), 6.875%, 10/01/39 | 20,000 | 21,412 | ||||||
Northampton County, PA, General Purpose Authority Hospital Rev. (St. Luke’s Hospital), “A”, 5.5%, 8/15/40 | 500,000 | 543,235 | ||||||
Pennsylvania Higher Educational Facilities Authority Rev. (University of Pennsylvania Health System), 5%, 8/15/29 | 1,000,000 | 1,168,520 | ||||||
Pennsylvania Higher Educational Facilities Authority Rev. (University of Pittsburgh Medical Center), “E”, 5%, 5/15/19 | 730,000 | 825,564 | ||||||
Philadelphia, PA, Hospitals & Higher Education Facilities Authority Rev. (The Children’s Hospital of Philadelphia), “C”, 5%, 7/01/25 | 1,000,000 | 1,149,630 | ||||||
Royal Oak, MI, Hospital Finance Authority Rev. (William Beaumont Hospital), 5%, 9/01/39 | 810,000 | 879,449 | ||||||
Southcentral, PA, General Authority Rev. (WellSpan Health Obligated Group), 6%, 6/01/25 (Prerefunded 6/01/18) | 430,000 | 487,624 | ||||||
Southcentral, PA, General Authority Rev. (WellSpan Health Obligated Group), 6%, 6/01/25 | 320,000 | 350,733 | ||||||
Southcentral, PA, General Authority Rev. (WellSpan Health Obligated Group), “A”, 5%, 6/01/44 | 1,000,000 | 1,099,510 | ||||||
St. Mary Hospital Authority, PA, Health System Rev. (Catholic Health East), “A”, 5%, 11/15/33 | 500,000 | 556,455 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
St. Petersburg, FL, Health Facilities Authority Rev., 6.5%, 11/15/39 | $ | 155,000 | $ | 188,452 | ||||
West Shore, PA, Hospital Authority Rev. (Holy Spirit Hospital), “B”, 5.625%, 1/01/32 | 500,000 | 586,430 | ||||||
Westmoreland County, PA, Industrial Development Authority Rev. (Excela Health Project), 5.125%, 7/01/30 | 1,000,000 | 1,084,200 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (Wheaton Franciscan Healthcare), 5.25%, 8/15/31 | 485,000 | 496,373 | ||||||
$ | 21,907,418 | |||||||
Healthcare Revenue - Long Term Care - 4.1% | ||||||||
Bucks County, PA, Industrial Development Authority Rev. (Lutheran Community Telford Center), 5.75%, 1/01/37 | $ | 300,000 | $ | 302,799 | ||||
Chartiers Valley, PA, Industrial & Commercial Development Authority (Asbury Health Center Project), 5.75%, 12/01/22 | 250,000 | 255,625 | ||||||
Cumberland County, PA, Municipal Authority Rev. (Asbury Atlantic, Inc.), 6%, 1/01/40 | 500,000 | 532,275 | ||||||
Cumberland County, PA, Municipal Authority Rev. (Asbury Atlantic, Inc.), 5.25%, 1/01/41 | 500,000 | 518,690 | ||||||
Cumberland County, PA, Municipal Authority Rev. (Diakon Lutheran Social Ministries Project), 6.375%, 1/01/39 (Prerefunded 1/01/19) | 450,000 | 526,424 | ||||||
Cumberland County, PA, Municipal Authority Rev. (Diakon Lutheran Social Ministries Project), 6.375%, 1/01/39 | 50,000 | 57,228 | ||||||
Lancaster County, PA, Hospital Authority Health System Rev. (Landis Homes Retirement Community Project), “A”, 5%, 7/01/45 | 500,000 | 505,350 | ||||||
Lancaster County, PA, Hospital Authority Health System Rev. (Masonic Villages Project), 5%, 11/01/35 | 500,000 | 554,600 | ||||||
Montgomery County, PA, Industrial Development Authority Retirement Community Rev. (Lanier Village Estates, Inc.), “A-1”, 6.25%, 11/15/29 | 250,000 | 281,605 | ||||||
Montgomery County, PA, Industrial Development Authority Rev. (Whitemarsh Continuing Care Retirement Community Project), 5.375%, 1/01/50 | 400,000 | 404,252 | ||||||
Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7%, 11/01/30 | 65,000 | 75,251 | ||||||
Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7.125%, 11/01/40 | 105,000 | 120,617 | ||||||
West Shore, PA, Area Authority Rev. (Messiah Village Project) “A”, 5%, 7/01/30 | 500,000 | 534,600 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), “A”, 7.25%, 9/15/29 | 10,000 | 11,768 |
29
Table of Contents
Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Long Term Care - continued | ||||||||
Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), “A”, 7.625%, 9/15/39 | $ | 70,000 | $ | 82,769 | ||||
$ | 4,763,853 | |||||||
Industrial Revenue - Environmental Services - 0.4% | ||||||||
Delaware County, PA, Industrial Development Authority Rev. (Covanta Project), “A”, 5%, 7/01/43 | $ | 500,000 | $ | 501,745 | ||||
Industrial Revenue - Other - 1.1% | ||||||||
Pennsylvania Economic Development Financing Authority, Solid Waste Disposal Rev. (Procter & Gamble), 5.375%, 3/01/31 | $ | 1,000,000 | $ | 1,237,500 | ||||
Miscellaneous Revenue - Other - 1.6% | ||||||||
Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/40 | $ | 145,000 | $ | 152,062 | ||||
Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/44 | 225,000 | 235,049 | ||||||
New York Liberty Development Corp., Liberty Rev. (3 World Trade Center Project), “1”, 5%, 11/15/44 | 580,000 | 585,812 | ||||||
Pennsylvania Economic Development Financing Authority Rev. (The Pennsylvania Rapid Bridge Replacement Project), 5%, 12/31/34 | 750,000 | 803,445 | ||||||
$ | 1,776,368 | |||||||
Sales & Excise Tax Revenue - 1.0% | ||||||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6.5%, 1/15/30 | $ | 580,000 | $ | 673,879 | ||||
Guam Government Business Privilege Tax Rev., “C”, 5%, 11/15/16 | 120,000 | 125,574 | ||||||
Guam Government Business Privilege Tax Rev., “C”, 5%, 11/15/17 | 135,000 | 145,967 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “C”, 5.25%, 8/01/40 | 380,000 | 237,508 | ||||||
$ | 1,182,928 | |||||||
Single Family Housing - Local - 0.2% | ||||||||
Allegheny County, PA, Residential Financing Authority, Single Family Mortgage Rev., “VV”, GNMA, 4.95%, 11/01/37 | $ | 270,000 | $ | 273,521 | ||||
Single Family Housing - State - 0.9% | ||||||||
Pennsylvania Housing Finance Agency, Single Family Mortgage Rev., “97-A”, 4.5%, 10/01/22 | $ | 1,000,000 | $ | 1,018,760 | ||||
Solid Waste Revenue - 0.6% | ||||||||
Delaware County, PA, Industrial Development Authority, Resource Recovery Facilities Rev. (American Ref-Fuel Co.), “A”, 6.2%, 7/01/19 | $ | 160,000 | $ | 160,554 |
Issuer | Shares/Par | Value ($) | ||||||
Solid Waste Revenue - continued | ||||||||
Pennsylvania Economic Development Financing Authority, Sewer Sludge Disposal Rev. (Philadelphia Biosolids Facility), 6.25%, 1/01/32 | $ | 500,000 | $ | 553,340 | ||||
$ | 713,894 | |||||||
State & Local Agencies - 3.7% | ||||||||
Commonwealth Financing Authority Rev., “A-2”, 5%, 6/01/36 | $ | 1,500,000 | $ | 1,640,205 | ||||
Delaware Valley, PA, Regional Finance Authority, AMBAC, 5.5%, 8/01/18 | 815,000 | 904,601 | ||||||
Delaware Valley, PA, Regional Finance Authority, “C”, FRN, 0.967%, 6/01/37 | 745,000 | 605,864 | ||||||
Pennsylvania Industrial Development Authority, Economic Development Authority Rev., 5.5%, 7/01/23 (Prerefunded 7/01/18) | 60,000 | 67,627 | ||||||
Pennsylvania Industrial Development Authority, Economic Development Authority Rev., 5.5%, 7/01/23 (Prerefunded 7/01/18) | 440,000 | 495,933 | ||||||
Philadelphia, PA, Municipal Authority Rev., 6.5%, 4/01/34 | 500,000 | 568,575 | ||||||
$ | 4,282,805 | |||||||
Tax - Other - 1.0% | ||||||||
Allentown, PA, Neighborhood Improvement Zone Development Authority Tax Rev., “A”, 5%, 5/01/35 | $ | 750,000 | $ | 785,505 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/24 | 140,000 | 155,295 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/29 | 45,000 | 49,856 | ||||||
Virgin Islands Public Finance Authority Rev. (Diageo Project), “A”, 6.75%, 10/01/37 | 125,000 | 140,733 | ||||||
$ | 1,131,389 | |||||||
Tax Assessment - 0.2% | ||||||||
Washington County, PA, Redevelopment Authority (Victory Centre Project), “A”, 5.45%, 7/01/35 | $ | 220,000 | $ | 222,906 | ||||
Tobacco - 1.7% | ||||||||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A-2”, 5.3%, 6/01/37 | $ | 665,000 | $ | 573,556 | ||||
Illinois Railsplitter Tobacco Settlement Authority, 6%, 6/01/28 | 755,000 | 891,617 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.5%, 6/01/23 | 310,000 | 311,547 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.75%, 6/01/34 | 165,000 | 127,543 | ||||||
Virgin Islands Tobacco Settlement Financing Corp., 5%, 5/15/21 | 40,000 | 40,001 | ||||||
$ | 1,944,264 | |||||||
Toll Roads - 1.4% | ||||||||
Delaware River Port Authority Rev., 5%, 1/01/29 | $ | 1,145,000 | $ | 1,322,120 |
30
Table of Contents
Portfolio of Investments (unaudited) – 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 | $ | 140,000 | $ | 173,817 | ||||
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 | 133,392 | ||||||
$ | 1,629,329 | |||||||
Transportation - Special Tax - 1.0% | ||||||||
Pennsylvania Turnpike Commission (Motor License Fund), “B”, 5%, 12/01/30 | $ | 1,000,000 | $ | 1,120,810 | ||||
Universities - Colleges - 18.6% | ||||||||
Allegheny County, PA, Higher Education Building Authority Rev. (Duquesne University), 5%, 3/01/33 | $ | 1,250,000 | $ | 1,337,475 | ||||
Allegheny County, PA, Higher Education Building Authority Rev. (Duquesne University), “A”, 5%, 3/01/32 | 500,000 | 569,625 | ||||||
Allegheny County, PA, Higher Education Building Authority Rev. (Duquesne University), “A”, SYNCORA, 5%, 3/01/24 | 1,000,000 | 1,020,190 | ||||||
Allegheny County, PA, Higher Education Building Authority Rev. (Robert Morris University), “A”, 6%, 10/15/38 | 250,000 | 270,773 | ||||||
Allegheny County, PA, Higher Education Building Authority Rev. (Robert Morris University), “A”, 5.75%, 10/15/40 | 500,000 | 540,295 | ||||||
Commonwealth of Pennsylvania, State Public School Building Authority Rev. (Montgomery County Community College), 5%, 5/01/33 | 1,000,000 | 1,128,180 | ||||||
Crawford County, PA, Industrial Development Authority, College Rev., “A”, 6%, 11/01/31 | 250,000 | 280,193 | ||||||
Cumberland County, PA, Municipal Authority College Rev. (Dickinson College), 5%, 11/01/26 | 1,000,000 | 1,076,490 | ||||||
Cumberland County, PA, Municipal Authority College Rev. (Dickinson College), “HH1”, 5%, 11/01/39 | 300,000 | 322,308 | ||||||
Delaware County, PA, Authority University Rev. (Neumann University), 5.25%, 10/01/31 | 565,000 | 601,476 | ||||||
Delaware County, PA, Authority University Rev. (Neumann University), 6.125%, 10/01/34 | 750,000 | 831,683 | ||||||
Delaware County, PA, Authority University Rev. (Villanova University), 5.25%, 12/01/31 | 350,000 | 393,460 | ||||||
Erie, PA, Higher Education Building Authority Rev. (Gannon University), “A”, 5.5%, 5/01/40 | 1,000,000 | 1,077,440 | ||||||
Illinois Finance Authority Rev. (Roosevelt University Project), 6.25%, 4/01/29 | 1,050,000 | 1,145,508 | ||||||
Lancaster, PA, Higher Education Authority College Rev. (Franklin & Marshall College), 5%, 4/15/37 | 500,000 | 539,610 | ||||||
New Jersey Educational Facilities Authority Rev. (University of Medicine & Dentistry), “B”, ETM, 6%, 12/01/17 | 505,000 | 547,496 |
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
Northampton County, PA, General Purpose Authority Rev. (Lafayette College), 5%, 11/01/34 | $ | 250,000 | $ | 273,368 | ||||
Northampton County, PA, General Purpose Authority Rev. (Lehigh University), 5.5%, 11/15/33 | 500,000 | 561,505 | ||||||
Pennsylvania Higher Educational Facilities Authority Rev. (Drexel University), NATL, 5%, 5/01/37 | 630,000 | 671,952 | ||||||
Pennsylvania Higher Educational Facilities Authority Rev. (La Salle University), “A”, 5.25%, 5/01/27 | 500,000 | 521,510 | ||||||
Pennsylvania Higher Educational Facilities Authority Rev. (La Salle University), “A”, 5%, 5/01/37 | 500,000 | 512,815 | ||||||
Pennsylvania Higher Educational Facilities Authority Rev. (Philadelphia University), 5.5%, 6/01/20 | 500,000 | 511,690 | ||||||
Pennsylvania Higher Educational Facilities Authority Rev. (Saint Francis University Project), “JJ2”, 6.25%, 11/01/41 | 500,000 | 554,805 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (Temple University), 5%, 4/01/27 | 805,000 | 946,551 | ||||||
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 | 80,522 | ||||||
Snyder County, PA, Higher Education Authority Rev. (Susquehanna University), 5%, 1/01/38 | 1,000,000 | 1,081,200 | ||||||
Union County, PA, Higher Educational Facilities Financing Authority, University Rev. (Bucknell University), “B”, 5%, 4/01/27 | 520,000 | 626,917 | ||||||
Washington County, PA, Industrial Development Authority College Rev. (Washington Jefferson College), 5.25%, 11/01/30 | 1,000,000 | 1,126,300 | ||||||
Wilkes-Barre, PA, Finance Authority Rev. (The University of Scranton), 5%, 11/01/35 | 1,000,000 | 1,110,680 | ||||||
Wilkes-Barre, PA, Finance Authority Rev. (The University of Scranton), “A”, 5%, 11/01/26 | 1,000,000 | 1,166,280 | ||||||
$ | 21,428,297 | |||||||
Universities - Dormitories - 3.2% | ||||||||
Clarion County, PA, Industrial Development Authority Student Housing Rev. (Clarion University Foundation, Inc.), “A”, 5%, 7/01/45 | $ | 1,000,000 | $ | 1,035,780 | ||||
East Hempfield, PA, Industrial Development Authority Rev. (Millersville University Student Services), 5%, 7/01/46 | 1,000,000 | 1,032,120 | ||||||
Pennsylvania Higher Educational Facilities Authority Rev. (Edinboro University Foundation), 6%, 7/01/43 | 1,000,000 | 1,065,220 |
31
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Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Universities - Dormitories - continued | ||||||||
Pennsylvania Higher Educational Facilities Authority Rev. (Shippensburg University Student Services), 6.25%, 10/01/43 | $ | 500,000 | $ | 552,495 | ||||
$ | 3,685,615 | |||||||
Universities - Secondary Schools - 3.1% | ||||||||
La Vernia, TX, Higher Education Finance Corp. Rev. (Lifeschool of Dallas), “A”, 7.5%, 8/15/41 (Prerefunded 8/15/19) | $ | 345,000 | $ | 426,165 | ||||
Montgomery County, PA, Higher Education & Health Authority Refunding Rev. (The Hill School Project), 5%, 8/15/25 | 150,000 | 182,544 | ||||||
Montgomery County, PA, Higher Education & Health Authority Refunding Rev. (The Hill School Project), 5%, 8/15/26 | 210,000 | 252,911 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (Discovery Charter School Project), 6.25%, 4/01/37 | 500,000 | 534,335 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (Global Leadership Academy Charter School), 6.375%, 11/15/40 | 500,000 | 533,150 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (MaST Charter School), 6%, 8/01/35 | 665,000 | 735,842 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (Philadelphia Performing Arts Charter School Project), 6.75%, 6/15/43 | 400,000 | 421,128 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (Tacony Academy Charter School Project), “A-1”, 7%, 6/15/43 | 400,000 | 449,256 | ||||||
$ | 3,535,331 | |||||||
Utilities - Investor Owned - 2.7% | ||||||||
Clarion County, PA, Industrial Development Authority, Water Facility Rev. (Pennsylvania American Water Co.), 5.5%, 12/01/39 | $ | 1,000,000 | $ | 1,087,840 | ||||
Michigan Strategic Fund Ltd. Obligation Rev. (Detroit Edison Co.), 5.625%, 7/01/20 | 415,000 | 486,990 | ||||||
Michigan Strategic Fund Ltd. Obligation Rev. (Detroit Edison Co.), 5.5%, 8/01/29 (Put Date 8/01/16) | 110,000 | 113,880 | ||||||
Pennsylvania Economic Development Financing Authority, Exempt Facilities Rev. (PPL Energy Supply LLC), 5%, 12/01/37 (Put Date 9/01/20) | 250,000 | 252,323 | ||||||
Pennsylvania Economic Development Financing Authority, Water Facilities Rev. (Aqua Pennsylvania, Inc.), “A”, 5%, 10/01/39 | 1,000,000 | 1,111,390 | ||||||
$ | 3,052,423 | |||||||
Utilities - Municipal Owned - 2.0% | ||||||||
Guam Power Authority Rev., “A”, 5.5%, 10/01/30 | $ | 315,000 | $ | 350,866 | ||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/39 | 95,000 | 108,045 | ||||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/44 | 105,000 | 118,717 |
Issuer | Shares/Par | Value ($) | ||||||
Utilities - Municipal Owned - continued | ||||||||
Philadelphia, PA, Gas Works Rev., 5%, 8/01/31 | $ | 500,000 | $ | 567,730 | ||||
Philadelphia, PA, Gas Works Rev., 5.25%, 8/01/40 | 1,000,000 | 1,109,820 | ||||||
$ | 2,255,178 | |||||||
Utilities - Other - 1.9% | ||||||||
California M-S-R Energy Authority Gas Rev., “A”, 6.5%, 11/01/39 | $ | 545,000 | $ | 727,722 | ||||
Public Authority for Colorado Energy Natural Gas Purchase Rev., 6.5%, 11/15/38 | 280,000 | 368,690 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/19 | 420,000 | 471,374 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/22 | 235,000 | 270,346 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “C”, 5%, 2/01/21 | 255,000 | 284,358 | ||||||
Texas Gas Acquisition & Supply Corp III., Gas Supply Rev., 5%, 12/15/31 | 75,000 | 81,362 | ||||||
$ | 2,203,852 | |||||||
Water & Sewer Utility Revenue - 6.3% | ||||||||
Allegheny County, PA, Sanitation Authority Sewer Rev., BAM, 5%, 12/01/30 | $ | 500,000 | $ | 579,935 | ||||
Allegheny County, PA, Sanitation Authority Sewer Rev., AGM, 5%, 6/01/40 | 1,000,000 | 1,125,410 | ||||||
Bucks County, PA, Water & Sewer Authority, Water System Rev., 5%, 12/01/33 | 1,000,000 | 1,110,650 | ||||||
Clairton, PA, Municipal Authority Sewer Rev., “B”, 5%, 12/01/42 | 500,000 | 530,870 | ||||||
Delaware County, PA, Regional Water Quality Control Authority Rev., 5%, 5/01/27 | 450,000 | 532,449 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5.25%, 7/01/20 | 45,000 | 51,357 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5.25%, 7/01/21 | 120,000 | 138,134 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5.625%, 7/01/40 | 260,000 | 284,461 | ||||||
Harrisburg, PA, Water Authority Rev., 5.25%, 7/15/31 | 1,000,000 | 1,015,070 | ||||||
Philadelphia, PA, Water & Wastewater Rev., “A”, 5.25%, 1/01/32 | 1,000,000 | 1,098,840 | ||||||
St. Mary’s, PA, Water Authority Rev., 5.15%, 2/01/30 | 750,000 | 819,225 | ||||||
$ | 7,286,401 | |||||||
Total Municipal Bonds (Identified Cost, $104,317,690) | $ | 112,277,914 | ||||||
Money Market Funds - 1.6% | ||||||||
MFS Institutional Money Market Portfolio, 0.12%, at Cost and Net Asset Value (v) | 1,843,816 | $ | 1,843,816 | |||||
Total Investments (Identified Cost, $106,161,506) | $ | 114,121,730 | ||||||
Other Assets, Less Liabilities - 0.9% | 990,296 | |||||||
Net Assets - 100.0% | $ | 115,112,026 |
32
Table of Contents
Portfolio of Investments (unaudited) – continued
Derivative Contracts at 9/30/15
Futures Contracts at 9/30/15
Description | Currency | Contracts | Value | Expiration Date | Unrealized Appreciation (Depreciation) | |||||||||||||
Liability Derivatives | ||||||||||||||||||
Interest Rate Futures | ||||||||||||||||||
U.S. Treasury Note 10 yr (Short) | USD | 28 | $3,604,563 | December - 2015 | $(31,161 | ) | ||||||||||||
|
|
At September 30, 2015, the fund had cash collateral of $37,800 to cover any commitments for certain derivative contracts. Cash collateral is comprised of “Deposits with brokers” on the Statements of Assets and Liabilities.
See Portfolio Footnotes and Notes to Financial Statements
33
Table of Contents
PORTFOLIO OF INVESTMENTS
9/30/15 (unaudited)
MFS SOUTH CAROLINA MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
Municipal Bonds - 98.1% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 3.2% | ||||||||
Charleston County, SC, Airport District Rev., “A”, 5.25%, 7/01/21 | $ | 2,000,000 | $ | 2,348,000 | ||||
Dallas and Fort Worth, TX, International Airport Rev., “B”, 5%, 11/01/44 | 220,000 | 242,283 | ||||||
Dallas and Fort Worth, TX, International Airport Rev., “C”, 5%, 11/01/45 | 155,000 | 169,418 | ||||||
Horry County, SC, Airport Rev. (Myrtle Beach International Airport), “A”, 5%, 7/01/40 | 2,250,000 | 2,466,563 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, 5%, 12/01/44 | 90,000 | 98,073 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, BAM, 5%, 12/01/39 | 10,000 | 11,060 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/39 | 75,000 | 79,406 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/44 | 120,000 | 126,302 | ||||||
$ | 5,541,105 | |||||||
General Obligations - General Purpose - 8.4% | ||||||||
Aiken County, SC, County Administration Building Project, 5%, 3/01/25 | $ | 910,000 | $ | 1,075,702 | ||||
Charleston County, SC, General Obligation, Transportation Sales Tax, 5%, 11/01/20 | 2,000,000 | 2,363,520 | ||||||
Clinton, SC, Laurens County School District, ASSD GTY, 6.125%, 3/01/33 | 1,000,000 | 1,155,900 | ||||||
Commonwealth of Puerto Rico, “A”, NATL, 5.5%, 7/01/20 | 470,000 | 467,110 | ||||||
Guam Government, “A”, 5.25%, 11/15/37 | 280,000 | 306,076 | ||||||
Guam Government, “A”, 7%, 11/15/39 | 50,000 | 61,728 | ||||||
Richland County, SC, General Obligation, “B”, 5%, 3/01/23 | 1,000,000 | 1,221,600 | ||||||
South Carolina, State Highway, “A”, 5%, 6/01/18 | 3,000,000 | 3,337,710 | ||||||
York County, SC, 5%, 11/01/20 | 2,675,000 | 3,160,004 | ||||||
York County, SC, 5%, 11/01/21 | 1,000,000 | 1,201,850 | ||||||
$ | 14,351,200 | |||||||
General Obligations - Schools - 9.5% | ||||||||
Anderson County, SC, School District, “A”, 5%, 3/01/21 | $ | 1,065,000 | $ | 1,264,166 | ||||
Anderson County, SC, School District, “A”, 5%, 3/01/26 | 1,240,000 | 1,544,519 | ||||||
Chesterfield County, SC, School District, 5%, 3/01/25 | 3,000,000 | 3,490,260 | ||||||
Lexington County, SC, School District No. 1, “A”, 5%, 3/01/23 | 1,030,000 | 1,245,260 | ||||||
Oconee County, GA, General Obligation, “A”, 5%, 3/01/19 | 465,000 | 528,621 |
Issuer | Shares/Par | Value ($) | ||||||
General Obligations - Schools - continued | ||||||||
Oconee County, GA, General Obligation, “A”, 5%, 3/01/22 | $ | 805,000 | $ | 967,996 | ||||
Orangeburg County, SC, Consolidated School District, 4%, 4/01/19 | 1,315,000 | 1,447,605 | ||||||
Richland County, SC, School District No. 1, “A”, 5%, 3/01/25 | 2,000,000 | 2,354,360 | ||||||
Richland County, SC, School District No. 1, “A”, 5%, 3/01/29 | 3,000,000 | 3,449,400 | ||||||
$ | 16,292,187 | |||||||
Healthcare Revenue - Hospitals - 16.2% | ||||||||
DeKalb County, GA, Hospital Authority Rev. (DeKalb Medical Center, Inc.), 6.125%, 9/01/40 | $ | 400,000 | $ | 434,316 | ||||
Escambia County, FL, Health Facilities Authority (Baptist Hospital, Inc.), “A”, 6%, 8/15/36 | 925,000 | 1,047,257 | ||||||
Florence County, SC, Hospital Rev. (McLeod Regional Medical Center), “A”, 5%, 11/01/37 | 3,000,000 | 3,310,770 | ||||||
Greenville, SC, Hospital Systems, Hospital Facilities Rev., 6%, 5/01/20 | 3,400,000 | 3,803,716 | ||||||
Greenwood County, SC, Hospital Rev. (Self Regional Healthcare), 5.375%, 10/01/39 | 1,000,000 | 1,099,250 | ||||||
Greenwood County, SC, Hospital Rev. (Self Regional Healthcare), “B”, 5%, 10/01/31 | 1,950,000 | 2,143,791 | ||||||
Illinois Finance Authority Rev. (Provena Health), “A”, 6%, 5/01/28 | 550,000 | 631,620 | ||||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 7%, 8/15/44 | 480,000 | 587,554 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.25%, 7/01/31 | 155,000 | 177,461 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.375%, 7/01/41 | 180,000 | 203,895 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6.375%, 6/01/40 | 605,000 | 684,418 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6.5%, 3/01/45 | 865,000 | 979,431 | ||||||
Lexington County, SC, Health Services District, Inc., Hospital Rev., 5%, 11/01/32 | 1,500,000 | 1,593,210 | ||||||
Lexington County, SC, Health Services District, Inc., Hospital Rev., Refunding & Improvement, 5%, 11/01/26 | 500,000 | 569,850 | ||||||
Louisville & Jefferson County, KY, Metropolitan Government Healthcare Systems Rev. (Norton Healthcare, Inc.), 5.25%, 10/01/36 | 465,000 | 476,839 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6%, 10/01/27 | 400,000 | 447,588 |
34
Table of Contents
Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6.125%, 10/01/39 | $ | 445,000 | $ | 491,600 | ||||
Richmond, IN, Hospital Authority Rev. (Reid Hospital), “A”, 6.5%, 1/01/29 (Prerefunded 1/01/19) | 585,000 | 685,450 | ||||||
Royal Oak, MI, Hospital Finance Authority Rev. (William Beaumont Hospital), “V”, 8.25%, 9/01/39 | 915,000 | 1,109,712 | ||||||
South Carolina Jobs & Economic Development Authority Hospital Rev. (Conway Hospital, Inc.), 5%, 7/01/37 | 1,250,000 | 1,338,525 | ||||||
South Carolina Jobs & Economic Development Authority Hospital Rev. (Palmetto Health), 5.75%, 8/01/39 | 275,000 | 296,915 | ||||||
South Carolina Jobs & Economic Development Authority Hospital Rev. (Palmetto Health), “A”, 5.25%, 8/01/30 | 1,000,000 | 1,124,080 | ||||||
South Carolina Jobs & Economic Development Authority, Hospital Facilities Rev. (Anmed Health), “B”, ASSD GTY, 5.5%, 2/01/38 | 1,500,000 | 1,667,625 | ||||||
South Carolina Jobs & Economic Development Authority, Hospital Facilities Rev. (Tuomey Health), CIFG, 5%, 11/01/30 | 375,000 | 342,971 | ||||||
Spartanburg County, SC, Regional Health Services District, “A”, 5%, 4/15/37 | 2,000,000 | 2,161,880 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 6.75%, 7/01/29 | 105,000 | 126,620 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 7%, 7/01/39 | 255,000 | 309,840 | ||||||
$ | 27,846,184 | |||||||
Healthcare Revenue - Long Term Care - 1.0% | ||||||||
South Carolina Jobs & Economic Development Authority Rev. (Woodlands at Furman), “A”, 6%, 11/15/47 | $ | 210,637 | $ | 203,077 | ||||
South Carolina Jobs & Economic Development Authority Rev. (Woodlands at Furman), Capital Appreciation, “B”, 0%, 11/15/47 | 152,775 | 15,219 | ||||||
South Carolina Jobs & Economic Development Authority, Health & Facilities Rev., First Mortgage (Wesley Commons), 5.125%, 10/01/26 | 400,000 | 401,936 | ||||||
South Carolina Jobs & Economic Development Authority, Health Facilities Rev. (Lutheran Homes of South Carolina, Inc.), 5%, 5/01/43 | 750,000 | 768,083 | ||||||
South Carolina Jobs & Economic Development Authority, Health Facilities Rev. (Lutheran Homes of South Carolina, Inc.), 5.125%, 5/01/48 | 250,000 | 256,160 | ||||||
$ | 1,644,475 | |||||||
Industrial Revenue - Chemicals - 0.6% | ||||||||
York County, SC, Industrial Rev. (Hoechst Celanese), 5.7%, 1/01/24 | $ | 1,000,000 | $ | 1,002,540 |
Issuer | Shares/Par | Value ($) | ||||||
Industrial Revenue - Other - 0.6% | ||||||||
Calhoun County, SC, Solid Waste Disposal Facilities Rev. (Carolina Eastman Co.), ETM, 6.75%, 5/01/17 | $ | 1,000,000 | $ | 1,093,090 | ||||
Industrial Revenue - Paper - 0.7% | ||||||||
Richland County, SC, Environmental Improvement Rev. (International Paper), “A”, 3.875%, 4/01/23 | $ | 1,000,000 | $ | 1,065,660 | ||||
Valparaiso, IN, Exempt Facilities Rev. (Pratt Paper LLC Project), 7%, 1/01/44 | 100,000 | 121,845 | ||||||
$ | 1,187,505 | |||||||
Miscellaneous Revenue - Other - 0.5% | ||||||||
New York Liberty Development Corp., Liberty Rev. (3 World Trade Center Project), “1”, 5%, 11/15/44 | $ | 835,000 | $ | 843,367 | ||||
Summit County, OH, Port Authority Building Rev. (Flats East Development Recovery Zone Facility Bonds), 6.875%, 5/15/40 | 45,000 | 50,584 | ||||||
$ | 893,951 | |||||||
Multi-Family Housing Revenue - 0.6% | ||||||||
North Charleston, SC, Housing Authority Rev. (Horizon Village), “A”, GNMA, 5%, 2/20/38 | $ | 1,000,000 | $ | 1,009,650 | ||||
Port Revenue - 0.2% | ||||||||
South Carolina Ports Authority, Ports Rev., 5.25%, 7/01/40 | $ | 250,000 | $ | 279,003 | ||||
Sales & Excise Tax Revenue - 0.8% | ||||||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6%, 1/15/41 | $ | 725,000 | $ | 816,879 | ||||
Guam Government Business Privilege Tax Rev., “C”, 5%, 11/15/17 | 200,000 | 216,248 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., 5.25%, 8/01/57 | 395,000 | 244,904 | ||||||
$ | 1,278,031 | |||||||
Single Family Housing - State - 1.2% | ||||||||
California Housing Finance Agency Rev. (Home Mortgage), “I”, 4.7%, 8/01/26 | $ | 830,000 | $ | 833,403 | ||||
South Carolina Housing, Finance & Development Authority Rev., “C-2”, AGM, 4.6%, 7/01/32 | 1,135,000 | 1,140,777 | ||||||
$ | 1,974,180 | |||||||
Solid Waste Revenue - 0.6% | ||||||||
Three Rivers, SC, Solid Waste Authority Rev., 5%, 10/01/28 (Prerefunded 10/01/17) | $ | 1,000,000 | $ | 1,085,780 | ||||
State & Local Agencies - 10.4% | ||||||||
Berkeley County, SC, General Obligation, “A”, 5%, 3/01/24 | $ | 1,000,000 | $ | 1,223,300 | ||||
Berkeley County, SC, School District Special Obligation, 5%, 12/01/20 | 800,000 | 921,528 |
35
Table of Contents
Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
State & Local Agencies - continued | ||||||||
Berkeley County, SC, School District Special Obligation, 5%, 12/01/21 | $ | 1,000,000 | $ | 1,162,860 | ||||
Charleston County, SC, Special Source Rev., “C”, 5%, 12/01/21 | 1,000,000 | 1,186,510 | ||||||
Charleston, SC, Educational Excellence Finance Corp. Rev. (Charleston County School District Project), 5%, 12/01/31 | 3,720,000 | 3,920,917 | ||||||
Charleston, SC, Educational Excellence Finance Corp. Rev. (Charleston County School District Project), “B”, 5%, 12/01/30 | 3,595,000 | 4,165,994 | ||||||
Delaware Valley, PA, Regional Finance Authority, “C”, FRN, 0.967%, 6/01/37 | 1,330,000 | 1,081,609 | ||||||
Greenville County, SC, School District Installment Purchase Rev., AGM, 5%, 12/01/28 | 680,000 | 716,727 | ||||||
Lexington County, SC, One School Facilities Corp. Installment Purchase Rev. (School District No.1 SC Project), 5%, 12/01/30 | 725,000 | 822,592 | ||||||
Los Angeles, CA, Municipal Improvement Corp. Lease Rev. (Real Property), “E”, 6%, 9/01/39 | 290,000 | 334,976 | ||||||
Scago, SC, Educational Facilities Installment Purchase Rev. (School District of Pickens County Project), 5%, 12/01/28 | 2,000,000 | 2,329,220 | ||||||
$ | 17,866,233 | |||||||
Tax - Other - 4.2% | ||||||||
Greenville County, SC, Hospitality Tax Rev., AGM, 5%, 4/01/22 | $ | 1,025,000 | $ | 1,176,587 | ||||
Greenville County, SC, Tourism Public Facilities Corp., Hospitality Tax, 4.75%, 4/01/29 | 750,000 | 838,733 | ||||||
Greenville County, SC, Tourism Public Facilities Corp., Hospitality Tax, 4.75%, 4/01/30 | 500,000 | 560,300 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/24 | 180,000 | 199,665 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/29 | 60,000 | 66,475 | ||||||
Virgin Islands Public Finance Authority Rev. (Diageo Project), “A”, 6.75%, 10/01/37 | 160,000 | 180,138 | ||||||
Virgin Islands Public Finance Authority Rev., “A”, 5%, 10/01/24 | 585,000 | 670,866 | ||||||
Virgin Islands Public Finance Authority Rev., “A”, 5%, 10/01/29 | 585,000 | 643,248 | ||||||
Virgin Islands Public Finance Authority Rev., “A”, 5%, 10/01/32 | 2,100,000 | 2,244,207 | ||||||
Virgin Islands Public Finance Authority Rev., “A”, 5%, 10/01/34 | 580,000 | 624,393 | ||||||
$ | 7,204,612 | |||||||
Tax Assessment - 0.2% | ||||||||
Lancaster County, SC, Assessment Rev. (Sun City Carolina Lakes), 5.45%, 12/01/37 | $ | 385,000 | $ | 385,504 | ||||
Tobacco – 1.5% | ||||||||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A-2”, 5.3%, 6/01/37 | $ | 840,000 | $ | 724,492 | ||||
Illinois Railsplitter Tobacco Settlement Authority, 6%, 6/01/28 | 850,000 | 1,003,808 |
Issuer | Shares/Par | Value ($) | ||||||
Tobacco – continued | ||||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.75%, 6/01/34 | $ | 235,000 | $ | 181,653 | ||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 5%, 6/01/41 | 920,000 | 723,111 | ||||||
$ | 2,633,064 | |||||||
Toll Roads - 0.6% | ||||||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 6%, 1/01/37 | $ | 335,000 | $ | 378,339 | ||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 5.5%, 1/01/42 | 535,000 | 580,662 | ||||||
$ | 959,001 | |||||||
Transportation - Special Tax - 2.3% | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “AA-1”, AGM, 4.95%, 7/01/26 | $ | 735,000 | $ | 725,783 | ||||
South Carolina Transportation Infrastructure Rev., “A”, 5%, 10/01/23 | 2,825,000 | 3,289,543 | ||||||
$ | 4,015,326 | |||||||
Universities - Colleges - 6.0% | ||||||||
College of Charleston, SC, Academic & Administrative Facilities Rev., “B”, 5%, 4/01/22 | $ | 1,205,000 | $ | 1,427,057 | ||||
Pinellas County, FL, Educational Facilities Authority Rev. (Barry University), 6%, 10/01/41 | 200,000 | 223,304 | ||||||
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 | 63,979 | ||||||
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 | 105,950 | ||||||
Puerto Rico Industrial, Tourist, Medical, & Environmental Central Facilities (University of Sacred Heart), 4.375%, 10/01/31 | 55,000 | 40,327 | ||||||
Puerto Rico Industrial, Tourist, Medical, & Environmental Central Facilities (University of Sacred Heart), 5%, 10/01/42 | 30,000 | 21,936 | ||||||
South Carolina Educational Facilities Authority (Wofford College), 5.25%, 4/01/32 | 1,000,000 | 1,047,390 | ||||||
South Carolina Jobs & Economic Development Authority (Furman University), 5%, 10/01/28 | 700,000 | 822,521 | ||||||
South Carolina Jobs & Economic Development Authority (Furman University), 5%, 10/01/30 | 1,800,000 | 2,077,146 | ||||||
University of South Carolina, Athletic Facilities Rev., “A”, 5%, 5/01/35 | 1,000,000 | 1,122,750 | ||||||
University of South Carolina, Athletic Facilities Rev., “A”, 5.5%, 5/01/38 | 1,000,000 | 1,088,480 |
36
Table of Contents
Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
University of South Carolina, Athletic Facilities Rev., “A”, 5%, 5/01/40 | $ | 2,000,000 | $ | 2,240,860 | ||||
$ | 10,281,700 | |||||||
Universities - Dormitories - 2.3% | ||||||||
University of South Carolina, Higher Education Rev., “A”, 5%, 6/01/35 | $ | 2,555,000 | $ | 2,872,050 | ||||
University of South Carolina, Higher Education Rev., “A”, 5%, 6/01/39 | 1,000,000 | 1,082,630 | ||||||
$ | 3,954,680 | |||||||
Universities - Secondary Schools - 0.1% | ||||||||
North Texas Education Finance Corp., Education Rev. (Uplift Education), “A”, 5.125%, 12/01/42 | $ | 220,000 | $ | 230,545 | ||||
Utilities - Investor Owned - 0.6% | ||||||||
Michigan Strategic Fund Ltd. Obligation Rev. (Detroit Edison Co.), 5.625%, 7/01/20 | $ | 800,000 | $ | 938,776 | ||||
Michigan Strategic Fund Ltd. Obligation Rev. (Detroit Edison Co.), 5.5%, 8/01/29 (Put Date 8/01/16) | 150,000 | 155,291 | ||||||
$ | 1,094,067 | |||||||
Utilities - Municipal Owned - 8.1% | ||||||||
Easley, SC, Utility Rev., AGM, 5.25%, 12/01/31 | $ | 2,500,000 | $ | 2,765,500 | ||||
Easley, SC, Utility Rev., ASSD GTY, 5%, 12/01/34 | 2,325,000 | 2,613,533 | ||||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/24 | 860,000 | 1,018,550 | ||||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/39 | 145,000 | 164,911 | ||||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/44 | 170,000 | 192,209 | ||||||
Piedmont, SC, Municipal Power Agency, NATL, 6.25%, 1/01/21 | 2,700,000 | 3,305,232 | ||||||
Piedmont, SC, Municipal Power Agency, “C”, AGM, 5%, 1/01/30 | 1,000,000 | 1,108,250 | ||||||
South Carolina Public Service Authority, “A”, 5.5%, 1/01/38 (Prerefunded 1/01/19) | 195,000 | 223,823 | ||||||
South Carolina Public Service Authority, “A”, 5.5%, 1/01/38 | 2,305,000 | 2,573,970 | ||||||
$ | 13,965,978 | |||||||
Utilities - Other - 2.1% | ||||||||
California M-S-R Energy Authority Gas Rev., “A”, 6.5%, 11/01/39 | $ | 685,000 | $ | 914,660 | ||||
Nebraska Central Plains Energy Project, Gas Project Rev., “3”, 5%, 9/01/42 | 790,000 | 848,673 | ||||||
Public Authority for Colorado Energy Natural Gas Purchase Rev., 6.25%, 11/15/28 | 130,000 | 162,362 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/21 | 270,000 | 307,903 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/22 | 290,000 | 333,619 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/26 | 570,000 | 660,425 |
Issuer | Shares/Par | Value ($) | ||||||
Utilities - Other - continued | ||||||||
Tennessee Energy Acquisition Corp., Gas Rev., “C”, 5%, 2/01/21 | $ | 330,000 | $ | 367,993 | ||||
$ | 3,595,635 | |||||||
Water & Sewer Utility Revenue - 15.6% | ||||||||
Charleston, SC, Waterworks & Sewer Rev., Capital Improvement, 5%, 1/01/35 | $ | 1,000,000 | $ | 1,128,980 | ||||
Columbia, SC, Waterworks & Sewer System Rev., 5%, 2/01/20 | 120,000 | 138,941 | ||||||
Columbia, SC, Waterworks & Sewer System Rev., 5%, 2/01/21 | 400,000 | 472,028 | ||||||
Columbia, SC, Waterworks & Sewer Systems Rev., “A”, 5%, 2/01/25 | 580,000 | 663,781 | ||||||
Columbia, SC, Waterworks & Sewer Systems Rev., “A”, 5%, 2/01/36 | 3,000,000 | 3,383,220 | ||||||
Dorchester County, SC, Waterworks & Sewer Systems Rev., ASSD GTY, 5%, 10/01/29 | 1,000,000 | 1,106,520 | ||||||
Greenville, SC, Renewable Water Resource Sewer Systems Rev., “A”, 5%, 1/01/24 | 1,000,000 | 1,131,300 | ||||||
Greenwood, SC, Sewer Systems Rev., AGM, 5%, 10/01/30 | 1,000,000 | 1,091,210 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5.625%, 7/01/40 | 315,000 | 344,635 | ||||||
Kershaw County, SC, Waterworks System Rev. (Lugoff Water District), “B”, 5%, 7/01/30 | 500,000 | 590,800 | ||||||
Kershaw County, SC, Waterworks System Rev. (Lugoff Water District), “B”, 5%, 7/01/35 | 500,000 | 579,830 | ||||||
Laurens County, SC, Water & Sewer Commission, Waterworks District (Rabon Creek), “A”, 5%, 3/01/32 | 1,405,000 | 1,471,864 | ||||||
Lexington, SC, Waterworks & Sewer Systems Rev., ASSD GTY, 5%, 1/15/39 | 2,000,000 | 2,251,660 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “C-7”, NATL, 5%, 7/01/32 | 50,000 | 54,585 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “D-1”, AGM, 5%, 7/01/35 | 30,000 | 32,845 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “D-1”, AGM, 5%, 7/01/37 | 70,000 | 76,255 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “D-6”, NATL, 5%, 7/01/36 | 60,000 | 64,712 | ||||||
North Charleston, SC, Sewer District, 5%, 7/01/39 | 3,425,000 | 3,869,908 | ||||||
Spartanburg, SC, Sanitary Sewer District Convertible Rev., “B”, 5%, 3/01/34 | 2,000,000 | 2,283,740 | ||||||
Spartanburg, SC, Sanitary Sewer District Convertible Rev., “B”, 5%, 3/01/33 | 1,000,000 | 1,124,340 | ||||||
Spartanburg, SC, Waterworks Rev., ASSD GTY, 5%, 6/01/39 | 2,000,000 | 2,229,880 | ||||||
Spartanburg, SC, Waterworks Rev., “A”, AGM, 5%, 6/01/17 | 2,040,000 | 2,191,103 |
37
Table of Contents
Portfolio of Investments (unaudited) – 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 | $ | 589,037 | ||||
$ | 26,871,174 | |||||||
Total Municipal Bonds (Identified Cost, $158,476,093) | $ | 168,536,400 |
Money Market Funds - 0.7% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
MFS Institutional Money Market Portfolio, 0.12%, at Cost and Net Asset Value (v) | 1,283,805 | $ | 1,283,805 | |||||
Total Investments (Identified Cost, $159,759,898) | $ | 169,820,205 | ||||||
Other Assets, Less Liabilities - 1.2% | 2,027,513 | |||||||
Net Assets - 100.0% | $ | 171,847,718 |
Derivative Contracts at 9/30/15
Futures Contracts at 9/30/15
Description | Currency | Contracts | Value | Expiration Date | Unrealized Appreciation (Depreciation) | |||||||||||||
Liability Derivatives | ||||||||||||||||||
Interest Rate Futures | ||||||||||||||||||
U.S. Treasury Note 10 yr (Short) | USD | 28 | $3,604,563 | December - 2015 | $(31,161 | ) | ||||||||||||
|
|
At September 30, 2015, the fund had cash collateral of $37,800 to cover any commitments for certain derivative contracts. Cash collateral is composed of “Deposits with brokers” on the Statements of Assets and Liabilities.
See Portfolio Footnotes and Notes to Financial Statements
38
Table of Contents
PORTFOLIO OF INVESTMENTS
9/30/15 (unaudited)
MFS TENNESSEE MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
Municipal Bonds - 97.2% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 2.2% | ||||||||
Memphis-Shelby County, TN, Airport Authority Facilities Rev., “A”, ASSD GTY, 5%, 7/01/39 | $ | 1,000,000 | $ | 1,114,620 | ||||
Memphis-Shelby County, TN, Airport Authority Facilities Rev., “D”, 5%, 7/01/25 | 1,000,000 | 1,136,030 | ||||||
$ | 2,250,650 | |||||||
General Obligations - General Purpose - 19.2% | ||||||||
Chattanooga, TN, “B”, 4%, 10/01/23 | $ | 1,325,000 | $ | 1,490,559 | ||||
Commonwealth of Puerto Rico, “A”, NATL, 5.5%, 7/01/20 | 185,000 | 183,862 | ||||||
Guam Government, “A”, 5.25%, 11/15/37 | 215,000 | 235,023 | ||||||
Johnson City, TN, 5%, 6/01/31 | 1,000,000 | 1,107,420 | ||||||
Memphis, TN, “A”, 5%, 11/01/22 | 1,500,000 | 1,817,025 | ||||||
Memphis, TN, “B”, 5%, 4/01/34 | 1,025,000 | 1,168,767 | ||||||
Memphis, TN, Refunding General Improvement, “B”, 5%, 4/01/31 | 1,000,000 | 1,150,740 | ||||||
Metropolitan Government of Nashville & Davidson County, TN, 5%, 7/01/21 | 2,000,000 | 2,319,440 | ||||||
Metropolitan Government of Nashville & Davidson County, TN, 5%, 1/01/28 (Prerefunded 1/01/18) | 2,000,000 | 2,189,020 | ||||||
Pigeon Forge, TN, Industrial Development Board, Public Facilities, 5%, 6/01/34 | 1,000,000 | 1,110,120 | ||||||
Shelby County, TN, “A”, 4.75%, 3/01/18 | 200,000 | 219,366 | ||||||
Shelby County, TN, “A”, 5%, 3/01/28 | 2,000,000 | 2,317,960 | ||||||
State of Tennessee, “A”, 5%, 10/01/29 | 1,500,000 | 1,750,110 | ||||||
Sumner County, TN, 5%, 6/01/21 | 1,300,000 | 1,544,270 | ||||||
Williamson County, TN, School District, ���A”, 4%, 3/01/19 | 1,015,000 | 1,119,180 | ||||||
$ | 19,722,862 | |||||||
General Obligations - Schools - 0.9% | ||||||||
Williamson County, TN, School District, 5%, 4/01/26 | $ | 740,000 | $ | 939,141 | ||||
Healthcare Revenue - Hospitals - 15.6% | ||||||||
Chattanooga, TN, Health Educational & Housing Facility Board Rev. (Catholic Health Initiatives), “A”, 5%, 10/01/44 | $ | 1,000,000 | $ | 1,057,920 | ||||
Chattanooga, TN, Health Educational & Housing Facility Board Rev. (Catholic Health Initiatives), “A”, 5.25%, 1/01/45 | 500,000 | 545,555 | ||||||
Chattanooga, TN, Health Educational & Housing Facility Board Rev. (Catholic Health Initiatives), “D”, 6.25%, 10/01/33 | 1,000,000 | 1,130,450 | ||||||
DeKalb County, GA, Hospital Authority Rev. (DeKalb Medical Center, Inc.), 6.125%, 9/01/40 | 295,000 | 320,308 | ||||||
Escambia County, FL, Health Facilities Authority (Baptist Hospital, Inc.), “A”, 6%, 8/15/36 | 680,000 | 769,876 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 7%, 8/15/44 (Prerefunded 8/15/19) | $ | 405,000 | $ | 495,748 | ||||
Jackson, TN, Hospital Rev. (Jackson-Madison County General Hospital), 5%, 4/01/28 | 1,500,000 | 1,712,805 | ||||||
Jackson, TN, Hospital Rev., Prerefunded & Improvement, 5.625%, 4/01/38 (Prerefunded 4/01/18) | 730,000 | 816,914 | ||||||
Jackson, TN, Hospital Rev., Unfunded Balance, 5.625%, 4/01/38 | 270,000 | 292,056 | ||||||
Johnson City, TN, Health & Education Financing Authority Rev. (Johnson City Medical Center Hospital), ETM, NATL, 5%, 7/01/18 | 110,000 | 110,437 | ||||||
Johnson City, TN, Health & Educational Facilities Board, Hospital Rev. (Mountain States Health Alliance), “A”, 5.5%, 7/01/31 | 400,000 | 412,720 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6.375%, 6/01/40 | 790,000 | 893,703 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6.5%, 3/01/45 | 265,000 | 300,057 | ||||||
Knox County, TN, Health, Educational & Housing Facility Board Hospital Rev. (Covenant Health), “A”, 5%, 1/01/24 | 1,000,000 | 1,164,130 | ||||||
Knox County, TN, Health, Educational, Hospital & Housing Facilities Board Rev. (Covenant Health), Capital Appreciation, “A”, AGM, 0%, 1/01/41 | 900,000 | 257,058 | ||||||
Louisville & Jefferson County, KY, Metropolitan Government Healthcare Systems Rev. (Norton Healthcare, Inc.), 5.25%, 10/01/36 | 675,000 | 692,186 | ||||||
Miami-Dade County, FL, Health Facilities Authority Hospital Rev. (Variety Children’s Hospital), “A”, 6%, 8/01/30 | 85,000 | 98,343 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6%, 10/01/27 | 510,000 | 570,675 | ||||||
Rutherford County, TN, Health & Educational Facilities Board Rev. (Ascension Health Senior Credit Group), “C”, 5%, 11/15/40 | 1,500,000 | 1,641,135 | ||||||
Shelby County, TN, Health, Educational & Housing Facilities Board Rev. (Methodist Healthcare), “B”, AGM, 5.25%, 9/01/27 | 1,500,000 | 1,624,560 | ||||||
St. Petersburg, FL, Health Facilities Authority Rev., 6.5%, 11/15/39 | 170,000 | 206,689 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (ProHealth Care, Inc. Obligated Group), 6.625%, 2/15/39 (Prerefunded 2/15/19) | 785,000 | 931,968 | ||||||
$ | 16,045,293 |
39
Table of Contents
Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Long Term Care - 2.9% | ||||||||
Blount County, TN, Health & Educational Facilities Board Rev. (Asbury, Inc.), “A”, 5.125%, 4/01/23 | $ | 395,000 | $ | 401,044 | ||||
Johnson City, TN, Health & Educational Facilities Board Rev. (Appalachian Christian Village Project), “A”, 5%, 2/15/43 | 1,000,000 | 1,029,140 | ||||||
Nashville & Davidson County, TN, Metropolitan Government Health & Educational Facilities Board Rev. (The Blakeford at Green Hills), 5%, 7/01/37 | 1,000,000 | 1,049,550 | ||||||
Shelby County, TN, Health, Educational & Housing Board Residential Care Facility Mortgage Rev. (Village at Germantown), 5.25%, 12/01/49 | 550,000 | 554,548 | ||||||
$ | 3,034,282 | |||||||
Miscellaneous Revenue - Entertainment & Tourism - 2.8% | ||||||||
Memphis-Shelby County, TN, Sports Authority, Inc. Rev., “B”, 5.375%, 11/01/29 | $ | 2,500,000 | $ | 2,850,150 | ||||
Miscellaneous Revenue - Other - 4.7% | ||||||||
Hardeman County, TN, Correctional Facilities Rev., 7.75%, 8/01/17 | $ | 235,000 | $ | 234,960 | ||||
Metropolitan Government of Nashville & Davidson County, TN, Sports Authority Rev., Public Improvement, “A”, 5%, 8/01/21 | 535,000 | 629,460 | ||||||
Metropolitan Government of Nashville & Davidson County, TN, Sports Authority Rev., Public Improvement, “A”, 5%, 8/01/23 | 1,205,000 | 1,447,735 | ||||||
Metropolitan Nashville Airport Authority, Special Facilities Rev. (Aero Nashville LLC Project), 5.2%, 7/01/26 | 835,000 | 896,723 | ||||||
New York Liberty Development Corp., Liberty Rev. (3 World Trade Center Project), “1”, 5%, 11/15/44 | 515,000 | 520,160 | ||||||
New York Liberty Development Corp., Liberty Rev. (7 World Trade Center Project), 5%, 9/15/40 | 980,000 | 1,122,757 | ||||||
$ | 4,851,795 | |||||||
Multi-Family Housing Revenue - 1.0% | ||||||||
Knoxville, TN, Community Development Corp., 5%, 7/01/24 | $ | 1,000,000 | $ | 1,003,480 | ||||
Sales & Excise Tax Revenue - 2.1% | ||||||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6.5%, 1/15/30 | $ | 480,000 | $ | 557,693 | ||||
Guam Government Business Privilege Tax Rev., “A”, 5.25%, 1/01/36 | 300,000 | 329,592 | ||||||
Guam Government Business Privilege Tax Rev., “C”, 5%, 11/15/17 | 120,000 | 129,749 | ||||||
Guam Government Business Privilege Tax Rev., “D”, 5%, 11/15/31 | 725,000 | 807,201 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., 5.25%, 8/01/57 | 250,000 | 155,003 |
Issuer | Shares/Par | Value ($) | ||||||
Sales & Excise Tax Revenue - continued | ||||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, 0%, 8/01/56 | $ | 2,820,000 | $ | 146,781 | ||||
$ | 2,126,019 | |||||||
Single Family Housing - State - 2.7% | ||||||||
Tennessee Housing Development Agency Rev., Homeownership Program, 5%, 7/01/26 | $ | 875,000 | $ | 885,448 | ||||
Tennessee Housing Development Agency Rev., Homeownership Program, 5%, 7/01/29 | 665,000 | 692,345 | ||||||
Tennessee Housing Development Agency Rev., Homeownership Program, “2”, 4.55%, 7/01/24 | 1,155,000 | 1,223,076 | ||||||
$ | 2,800,869 | |||||||
State & Agency - Other - 1.0% | ||||||||
Hardeman County, TN, Industrial Development Board Rev., “B”, ASSD GTY, 5%, 6/01/40 | $ | 1,000,000 | $ | 1,051,160 | ||||
State & Local Agencies - 9.0% | ||||||||
Chattanooga, TN, Industrial Development Board, Lease Rental Rev. (Southside Redevelopment Corp.), 5%, 10/01/20 | $ | 700,000 | $ | 804,531 | ||||
Chattanooga, TN, Industrial Development Board, Lease Rental Rev. (Southside Redevelopment Corp.), 5%, 10/01/24 | 1,000,000 | 1,137,160 | ||||||
Delaware Valley, PA, Regional Finance Authority, “C”, FRN, 0.967%, 6/01/37 | 795,000 | 646,526 | ||||||
Tennessee School Board Authority, Higher Education Facilities Rev., 5.125%, 5/01/33 (Prerefunded 5/01/18) | 360,000 | 399,773 | ||||||
Tennessee School Board Authority, Higher Education Facilities Rev., 5.125%, 5/01/33 (Prerefunded 5/01/18) | 1,640,000 | 1,821,778 | ||||||
Tennessee School Board Authority, Higher Education Facilities Second Program, “B”, 5%, 11/01/28 | 1,000,000 | 1,216,640 | ||||||
Tennessee School Bond Authority, “A”, 5%, 11/01/43 | 1,000,000 | 1,113,290 | ||||||
Tennessee School Bond Authority, “C”, AGM, 5%, 5/01/32 | 2,000,000 | 2,119,040 | ||||||
$ | 9,258,738 | |||||||
Tax - Other - 0.8% | ||||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/24 | $ | 150,000 | $ | 166,388 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/29 | 50,000 | 55,396 | ||||||
Virgin Islands Public Finance Authority Rev., “B”, AGM, 5%, 10/01/25 | 250,000 | 282,207 | ||||||
Virgin Islands Public Finance Authority Rev., Matching Fund Loan Note, “A”, AGM, 5%, 10/01/25 | 245,000 | 279,699 | ||||||
$ | 783,690 | |||||||
Tobacco - 1.8% | ||||||||
Illinois Railsplitter Tobacco Settlement Authority, 6%, 6/01/28 | $ | 200,000 | $ | 236,190 |
40
Table of Contents
Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Tobacco - continued | ||||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.5%, 6/01/23 | $ | 260,000 | $ | 261,297 | ||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.75%, 6/01/34 | 190,000 | 146,868 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 5%, 6/01/41 | 550,000 | 432,294 | ||||||
Virgin Islands Tobacco Settlement Financing Corp., 5%, 5/15/31 | 750,000 | 749,797 | ||||||
$ | 1,826,446 | |||||||
Toll Roads - 0.6% | ||||||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 6%, 1/01/37 | $ | 200,000 | $ | 225,874 | ||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 5.5%, 1/01/42 | 320,000 | 347,312 | ||||||
$ | 573,186 | |||||||
Transportation - Special Tax - 0.6% | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “CC”, AGM, 5.5%, 7/01/28 | $ | 600,000 | $ | 596,094 | ||||
Universities - Colleges - 6.9% | ||||||||
Claiborne County, TN, Industrial Development Board Rev. (Lincoln Memorial University Project), 6.625%, 10/01/39 | $ | 500,000 | $ | 542,330 | ||||
Claiborne County, TN, Industrial Development Board Rev. (Lincoln Memorial University Project), 6.125%, 10/01/40 | 250,000 | 269,993 | ||||||
Franklin County, TN, Health & Educational Facilities Board Rev. (University of the South), 4%, 9/01/23 | 1,000,000 | 1,097,240 | ||||||
Franklin County, TN, Health & Educational Facilities Board Rev. (University of the South), 5%, 9/01/28 | 500,000 | 570,995 | ||||||
Franklin County, TN, Health & Educational Facilities Board Rev. (University of the South), 5%, 9/01/30 | 375,000 | 423,041 | ||||||
Nashville & Davidson County, TN, Metropolitan Government Health & Educational Facilities Board, 5%, 10/01/34 | 2,500,000 | 2,836,100 | ||||||
Pinellas County, FL, Educational Facilities Authority Rev. (Barry University), 6%, 10/01/41 | 120,000 | 133,982 | ||||||
Shelby County, TN, Health Educational & Housing Facilities Rev. (Rhodes College), 5.5%, 8/01/40 | 1,000,000 | 1,175,740 | ||||||
$ | 7,049,421 | |||||||
Universities - Secondary Schools - 0.1% | ||||||||
North Texas Education Finance Corp., Education Rev. (Uplift Education), “A”, 5.125%, 12/01/42 | $ | 130,000 | $ | 136,231 |
Issuer | Shares/Par | Value ($) | ||||||
Utilities - Municipal Owned - 9.0% | ||||||||
Chattanooga, TN, Electric Rev., “A”, 5%, 9/01/33 | $ | 2,000,000 | $ | 2,203,600 | ||||
Citizens Gas Utility District, TN, Gas Rev., 5%, 5/01/35 | 1,000,000 | 1,073,840 | ||||||
Clarksville, TN, Electric System Rev., “A”, 5%, 9/01/34 | 1,250,000 | 1,410,025 | ||||||
Guam Power Authority Rev., “A”, 5.5%, 10/01/30 | 300,000 | 334,158 | ||||||
Guam Power Authority Rev., “A”, 5.5%, 10/01/40 | 470,000 | 515,961 | ||||||
Johnson City, TN, Electric Rev., AGM, 5%, 5/01/29 | 1,000,000 | 1,086,330 | ||||||
Long Island, NY, Power Authority, Electric Systems Rev., “A”, 6%, 5/01/33 | 195,000 | 224,320 | ||||||
Memphis, TN, Electric Systems Rev., 5%, 12/01/34 | 1,000,000 | 1,156,650 | ||||||
Metropolitan Government of Nashville & Davidson County, TN, Electric Rev., “A”, 5%, 5/15/28 | 1,000,000 | 1,207,700 | ||||||
$ | 9,212,584 | |||||||
Utilities - Other - 1.8% | ||||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/21 | $ | 225,000 | $ | 256,586 | ||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/22 | 115,000 | 132,297 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/23 | 85,000 | 98,325 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/26 | 1,200,000 | 1,390,368 | ||||||
$ | 1,877,576 | |||||||
Water & Sewer Utility Revenue - 11.5% | ||||||||
Clarksville, TN, Water, Sewer & Gas Rev., 5%, 2/01/29 | $ | 1,000,000 | $ | 1,140,680 | ||||
Harpeth Valley, TN, Utilities District, Davidson & Williamson Counties Rev., FGIC, 5.25%, 9/01/37 | 1,000,000 | 1,066,750 | ||||||
Knoxville, TN, Waste Water System Rev., “B”, 5%, 4/01/21 | 1,150,000 | 1,362,371 | ||||||
Memphis, TN, Sanitary Sewerage System Rev., 5%, 10/01/21 | 865,000 | 1,008,235 | ||||||
Metropolitan Government of Nashville & Davidson County, TN, Water & Sewer Rev., 5%, 7/01/32 | 2,000,000 | 2,291,140 | ||||||
Metropolitan Government of Nashville & Davidson County, TN, Water & Sewer Rev., “A”, AGM, 5.25%, 1/01/22 | 1,365,000 | 1,646,763 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “C-7”, NATL, 5%, 7/01/32 | 30,000 | 32,751 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “D-1”, AGM, 5%, 7/01/35 | 20,000 | 21,896 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “D-1”, AGM, 5%, 7/01/37 | 45,000 | 49,021 |
41
Table of Contents
Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - continued | ||||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “D-6”, NATL, 5%, 7/01/36 | $ | 35,000 | $ | 37,749 | ||||
Mississippi Development Bank Special Obligation (City of Jackson Water and Sewer System Rev. Bond Project), AGM, 6.875%, 12/01/40 | 65,000 | 83,112 | ||||||
South Blount County, TN, Utility District Waterworks Rev., AGM, 5%, 12/01/33 | 2,140,000 | 2,407,414 | ||||||
Wilson County, TN, West Wilson Utility District Waterworks Rev., 5%, 6/01/30 | 550,000 | 650,325 | ||||||
$ | 11,798,207 | |||||||
Total Municipal Bonds (Identified Cost, $93,698,066) | $ | 99,787,874 |
Money Market Funds - 1.6% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
MFS Institutional Money Market Portfolio, 0.12%, at Cost and Net Asset Value (v) | 1,596,771 | $ | 1,596,771 | |||||
Total Investments (Identified Cost, $95,294,837) | $ | 101,384,645 | ||||||
Other Assets, Less Liabilities - 1.2% | 1,237,797 | |||||||
Net Assets - 100.0% | $ | 102,622,442 |
See Portfolio Footnotes and Notes to Financial Statements
42
Table of Contents
PORTFOLIO OF INVESTMENTS
9/30/15 (unaudited)
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 - 3.1% | ||||||||
Chicago, IL, O’Hare International Airport Rev., Third Lien, “A”, 5.625%, 1/01/35 | $ | 855,000 | $ | 980,283 | ||||
Metropolitan Washington, DC, Airport Authority Rev., 5.375%, 10/01/28 | 1,500,000 | 1,651,740 | ||||||
Metropolitan Washington, DC, Airport Authority Rev., “B”, 5%, 10/01/27 | 980,000 | 1,146,218 | ||||||
Metropolitan Washington, DC, Airport Authority Rev., “B”, 5%, 10/01/28 | 1,000,000 | 1,163,500 | ||||||
Norfolk, VA, Airport Authority Rev., AGM, 5%, 7/01/23 | 2,000,000 | 2,251,480 | ||||||
Norfolk, VA, Airport Authority Rev., AGM, 5%, 7/01/24 | 1,000,000 | 1,145,550 | ||||||
$ | 8,338,771 | |||||||
General Obligations - General Purpose - 13.8% | ||||||||
Arlington County, VA, General Obligation, “A”, 5%, 8/01/22 | $ | 1,950,000 | $ | 2,369,582 | ||||
Chesapeake, VA, “B”, 5%, 6/01/23 | 1,930,000 | 2,253,314 | ||||||
Commonwealth of Puerto Rico, “A”, NATL, 5.5%, 7/01/20 | 750,000 | 745,388 | ||||||
Guam Government, “A”, 5.25%, 11/15/37 | 540,000 | 590,290 | ||||||
Guam Government, “A”, 6.75%, 11/15/29 | 925,000 | 1,133,088 | ||||||
Guam Government, “A”, 7%, 11/15/39 | 110,000 | 135,801 | ||||||
Isle Wight County, VA, “A”, 4%, 4/01/20 | 1,045,000 | 1,170,693 | ||||||
Loudoun County , VA, General Obligation Public Improvement, “A”, 5%, 12/01/22 | 3,000,000 | 3,663,780 | ||||||
Loudoun County , VA, General Obligation Public Improvement, “B”, 5%, 11/01/18 | 5,500,000 | 6,197,235 | ||||||
Lynchburg, VA, Public Improvement, 5%, 12/01/23 | 1,000,000 | 1,160,650 | ||||||
Lynchburg, VA, Public Improvement, 5%, 6/01/26 | 1,000,000 | 1,206,810 | ||||||
Portsmouth, VA, General Obligation Public Improvement, “A”, 5%, 2/01/22 | 1,255,000 | 1,502,238 | ||||||
Portsmouth, VA, General Obligation Public Improvement, “A”, 5%, 2/01/32 | 500,000 | 573,900 | ||||||
Puerto Rico Public Buildings Authority Rev., “H”, AMBAC, 5.5%, 7/01/17 | 325,000 | 322,832 | ||||||
Puerto Rico Public Buildings Authority Rev., “H”, AMBAC, 5.5%, 7/01/18 | 225,000 | 222,161 | ||||||
Richmond, VA, Public Improvement, “A”, 5%, 3/01/24 | 1,785,000 | 2,153,442 | ||||||
Richmond, VA, Public Improvement, “A”, 5%, 3/01/28 | 220,000 | 258,661 | ||||||
Richmond, VA, Public Improvement, “B”, 5%, 7/15/20 | 1,685,000 | 1,977,263 | ||||||
Stafford County, VA, General Obligation Public Improvement, 5%, 7/01/22 | 555,000 | 672,366 | ||||||
Suffolk, VA, General Obligation, 5%, 12/01/21 | 3,330,000 | 4,004,791 | ||||||
Suffolk, VA, General Obligation, 5%, 12/01/22 | 2,480,000 | 3,024,980 | ||||||
Virginia Beach, VA, Public Improvement, “B”, 5%, 4/01/22 | 2,000,000 | 2,417,400 | ||||||
$ | 37,756,665 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - 16.7% | ||||||||
Charlotte County, VA, Industrial Development Authority Rev. (Halifax Hospital), 5%, 9/01/37 | $ | 1,000,000 | $ | 1,041,770 | ||||
Fairfax County, VA, Industrial Development Authority Rev. (Inova Health System Project), “A”, 5.5%, 5/15/35 | 1,500,000 | 1,692,195 | ||||||
Fairfax County, VA, Industrial Development Authority Rev. (Inova Health System Project), “A”, 5%, 5/15/44 | 2,000,000 | 2,234,240 | ||||||
Fairfax County, VA, Industrial Development Authority Rev. (Inova Health System Project), “C”, 5%, 5/15/25 | 500,000 | 561,280 | ||||||
Fauquier County, VA, Industrial Development Authority Hospital Authority Rev. (Fauquier Hospital Obligation Group), “B”, 5.25%, 10/01/37 | 2,000,000 | 2,182,760 | ||||||
Fredericksburg, VA, Economic Development Authority, Hospital Facilities Rev. (Mary Washington Healthcare Obligated Group), 5%, 6/15/31 | 750,000 | 817,313 | ||||||
Fredericksburg, VA, Economic Development Authority, Hospital Facilities Rev. (Mary Washington Healthcare Obligated Group), 5%, 6/15/33 | 1,000,000 | 1,080,500 | ||||||
Fredericksburg, VA, Economic Development Authority, Hospital Facilities Rev. (Medicorp Health System), 5.25%, 6/15/19 | 1,125,000 | 1,235,846 | ||||||
Henrico County, VA, Economic Development Authority Rev. (Bon Secours Health Systems, Inc.), “B-2”, AGM, 5.25%, 11/01/42 | 1,705,000 | 1,894,869 | ||||||
Henrico County, VA, Industrial Development Authority Rev. (Bon Secours Health Systems, Inc.), NATL, 6.25%, 8/15/20 | 1,500,000 | 1,689,750 | ||||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 7%, 8/15/44 | 970,000 | 1,187,348 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.25%, 7/01/31 | 375,000 | 429,341 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.375%, 7/01/41 | 395,000 | 447,436 | ||||||
Louisville & Jefferson County, KY, Metropolitan Government Healthcare Systems Rev. (Norton Healthcare, Inc.), 5.25%, 10/01/36 | 1,635,000 | 1,676,627 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6%, 10/01/27 | 635,000 | 710,546 | ||||||
Norfolk, VA, Economic Development Authority Health Care Facilities Rev. (Sentara Healthcare), “B”, 5%, 11/01/36 | 2,875,000 | 3,212,295 | ||||||
Roanoke, VA, Economic Development Authority Hospital Rev. (Carilion Medical Center), 5%, 7/01/33 | 2,385,000 | 2,624,693 |
43
Table of Contents
Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Roanoke, VA, Industrial Development Authority Hospital Rev. (Carilion Health Systems), “B”, N, 5%, 7/01/38 | $ | 2,955,000 | $ | 3,228,544 | ||||
Roanoke, VA, Industrial Development Authority Hospital Rev. (Carilion Health Systems), “B”, 5%, 7/01/38 (Prerefunded 7/01/20) | 45,000 | 52,695 | ||||||
Roanoke, VA, Industrial Development Authority Hospital Rev. (Roanoke Memorial Hospital), “B”, ETM, NATL, 6.125%, 7/01/17 | 1,590,000 | 1,687,817 | ||||||
Royal Oak, MI, Hospital Finance Authority Rev. (William Beaumont Hospital), “V”, 8.25%, 9/01/39 | 1,805,000 | 2,189,104 | ||||||
Virginia Small Business Financing Authority Hospital Rev. (Wellmont Health Project), ‘‘A’’, 5.25%, 9/01/37 | 2,000,000 | 2,070,400 | ||||||
Virginia Small Business Financing Authority, Healthcare Facility Rev. (Sentra Healthcare), 5%, 11/01/40 | 4,000,000 | 4,430,680 | ||||||
Washington County, VA, Industrial Development Authority, Hospital Facilities Rev. (Mountain States Health Alliance), “C”, 7.5%, 7/01/29 | 1,400,000 | 1,606,892 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 6.75%, 7/01/29 | 220,000 | 265,298 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 7%, 7/01/39 | 530,000 | 643,982 | ||||||
Winchester, VA, Economic Development Authority Hospital Rev. (Valley Health System Obligated Group), “A”, 5%, 1/01/44 | 2,000,000 | 2,196,780 | ||||||
Winchester, VA, Economic Development Authority Rev., (Valley Health System Obligated Group), 5%, 1/01/28 | 600,000 | 700,596 | ||||||
Winchester, VA, Economic Development Authority Rev., (Valley Health System Obligated Group), 5%, 1/01/30 | 400,000 | 459,848 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (Wheaton Franciscan Healthcare), 5.25%, 8/15/31 | 1,280,000 | 1,310,016 | ||||||
$ | 45,561,461 | |||||||
Healthcare Revenue - Long Term Care - 2.3% | ||||||||
Albemarle County, VA, Economic Development Authority, Residential Care Facilities Rev. (Westminster-Canterbury Blue Ridge), “A”, 5%, 1/01/42 | $ | 1,000,000 | $ | 1,038,100 | ||||
Alexandria, VA, Industrial Development Authority, Residential Care Facilities Mortgage Rev. (Goodwin House, Inc.), 5%, 10/01/30 | 1,000,000 | 1,093,860 | ||||||
Chesterfield County, VA, Health Center Commission Residential Care Facility, 6.25%, 12/01/38 | 750,000 | 619,613 | ||||||
Henrico County, VA, Economic Development Authority Rev., Residential Care Facility (Virginia United Methodist Homes, Inc.), 5%, 6/01/24 | 395,000 | 438,802 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Long Term Care - continued | ||||||||
Henrico County, VA, Economic Development Authority Rev., Residential Care Facility (Virginia United Methodist Homes, Inc.), 5%, 6/01/25 | $ | 385,000 | $ | 424,628 | ||||
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 | 8,996 | ||||||
Lexington, VA, Industrial Development Authority Residential Care Facilities (Kendal at Lexington), “A”, 5.5%, 1/01/37 | 1,000,000 | 1,015,270 | ||||||
Norfolk, VA, Redevelopment & Housing Authority Rev. (Fort Norfolk Retirement Community), 5.375%, 1/01/46 | 500,000 | 503,855 | ||||||
Suffolk, VA, Industrial Development Authority, Retirement Facilities Rev. (Lake Prince Center, Inc.), 5.3%, 9/01/31 | 750,000 | 753,840 | ||||||
Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7%, 11/01/30 | 175,000 | 202,598 | ||||||
Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7.125%, 11/01/40 | 265,000 | 304,413 | ||||||
$ | 6,403,975 | |||||||
Industrial Revenue - Paper - 0.1% | ||||||||
Valparaiso, IN, Exempt Facilities Rev. (Pratt Paper LLC Project), 6.75%, 1/01/34 | $ | 100,000 | $ | 120,880 | ||||
Valparaiso, IN, Exempt Facilities Rev. (Pratt Paper LLC Project), 7%, 1/01/44 | 130,000 | 158,399 | ||||||
West Point, VA, Industrial Development Authority, Solid Waste Disposal Rev. (Chesapeake Corp.), “A”, 6.375%, 3/01/19 (a)(d) | 1,683,272 | 17 | ||||||
$ | 279,296 | |||||||
Miscellaneous Revenue - Other - 0.5% | ||||||||
New York Liberty Development Corp., Liberty Rev. (3 World Trade Center Project), “1”, 5%, 11/15/44 | $ | 1,355,000 | $ | 1,368,577 | ||||
Summit County, OH, Port Authority Building Rev. (Flats East Development Recovery Zone Facility Bonds), 6.875%, 5/15/40 | 80,000 | 89,927 | ||||||
$ | 1,458,504 | |||||||
Multi-Family Housing Revenue - 6.0% | ||||||||
Arlington County, VA, Industrial Development Authority Rev. (Colonial Village), FNMA, 5.15%, 11/01/31 (Put Date 11/01/19) | $ | 2,660,000 | $ | 2,710,753 | ||||
Virginia Housing Development Authority Rev., “C”, 5.625%, 11/01/38 | 1,355,000 | 1,376,395 | ||||||
Virginia Housing Development Authority Rev., “D”, 4.6%, 7/01/33 | 1,000,000 | �� | 1,001,690 | |||||
Virginia Housing Development Authority Rev., Rental Housing, “B”, 5.5%, 6/01/30 | 1,450,000 | 1,539,219 | ||||||
Virginia Housing Development Authority Rev., Rental Housing, “B”, 5%, 6/01/45 | 3,050,000 | 3,169,469 |
44
Table of Contents
Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Multi-Family Housing Revenue - continued | ||||||||
Virginia Housing Development Authority Rev., Rental Housing, “E”, 4.8%, 10/01/39 | $ | 3,000,000 | $ | 3,093,540 | ||||
Virginia Housing Development Authority Rev., Rental Housing, “F”, 4.8%, 4/01/37 | 1,330,000 | 1,390,010 | ||||||
Virginia Housing Development Authority Rev., Rental Housing, “F”, 5%, 4/01/45 | 2,125,000 | 2,208,449 | ||||||
$ | 16,489,525 | |||||||
Port Revenue - 1.2% | ||||||||
Virginia Port Authority Facilities Rev, “A”, 5%, 7/01/31 | $ | 3,000,000 | $ | 3,408,780 | ||||
Sales & Excise Tax Revenue - 0.8% | ||||||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6%, 1/15/41 | $ | 1,320,000 | $ | 1,487,284 | ||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “A”, 5.5%, 8/01/28 (Prerefunded 8/01/19) | 40,000 | 46,521 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “C”, 5.25%, 8/01/40 | 825,000 | 515,642 | ||||||
$ | 2,049,447 | |||||||
Single Family Housing - State - 2.7% | ||||||||
California Housing Finance Agency Rev. (Home Mortgage), “I”, 4.7%, 8/01/26 | $ | 1,370,000 | $ | 1,375,617 | ||||
Virginia Housing Development Authority Commonwealth, “B”, 4.75%, 7/01/32 | 2,000,000 | 2,015,480 | ||||||
Virginia Housing Development Authority Rev., Rental Housing, “F”, 5.1%, 1/01/41 | 3,770,000 | 3,960,988 | ||||||
$ | 7,352,085 | |||||||
State & Local Agencies - 10.4% | ||||||||
Delaware Valley, PA, Regional Finance Authority, “C”, FRN, 0.967%, 6/01/37 | $ | 1,955,000 | $ | 1,589,884 | ||||
Fairfax County, VA, Economic Development Authority Facilities Rev. (County Facilities Projects), “A”, 5%, 10/01/33 | 500,000 | 581,380 | ||||||
Fairfax County, VA, Economic Development Authority Facilities Rev. (County Facilities Projects), “A”, 5%, 10/01/34 | 1,000,000 | 1,158,480 | ||||||
Manassas Park, VA, Economic Development Authority Lease Rev., “A”, 6%, 7/15/35 | 1,000,000 | 1,207,020 | ||||||
Montgomery County, VA, Industrial Development Authority (Public Facilities Project), 5%, 2/01/29 | 500,000 | 537,945 | ||||||
Powhatan County, VA, 5%, 1/15/32 | 2,500,000 | 2,796,275 | ||||||
Stafford County, VA, Economic Development Authority Lease Rev., 5%, 4/01/33 (Prerefunded 4/01/18) | 2,400,000 | 2,644,872 | ||||||
Stafford County, VA, Economic Development Authority Lease Rev., 5%, 4/01/33 | 600,000 | 646,902 | ||||||
Virginia College Building Authority, Educational Facilities Rev., 5%, 2/01/23 | 2,140,000 | 2,582,424 | ||||||
Virginia College Building Authority, Educational Facilities Rev. (21st Century College & Equipment), “A”, 5%, 2/01/29 | 1,500,000 | 1,670,265 |
Issuer | Shares/Par | Value ($) | ||||||
State & Local Agencies - continued | ||||||||
Virginia College Building Authority, Educational Facilities Rev. (Public Higher Education Financing), “A”, 5%, 9/01/27 | $ | 3,000,000 | $ | 3,480,630 | ||||
Virginia College Building Authority, Educational Facilities Rev. (Public Higher Education Financing), “B”, 5%, 9/01/20 | 3,000,000 | 3,512,100 | ||||||
Virginia Public Building Authority Rev., “B”, 5.25%, 8/01/28 | 1,000,000 | 1,124,670 | ||||||
Virginia Public Building Authority, Public Facilities Rev., “B”, 5%, 8/01/29 | 950,000 | 1,070,907 | ||||||
Virginia Public Building Authority, Public Facilities Rev., “B-3”, 4%, 8/01/21 | 1,000,000 | 1,131,870 | ||||||
Virginia Public School Authority (1997 Resolution), “A”, 5%, 8/01/19 | 1,175,000 | 1,345,363 | ||||||
Virginia Public School Authority (1997 Resolution), “A”, 5%, 8/01/30 | 1,000,000 | 1,150,180 | ||||||
Virginia Resource Authority Infrastructure Rev. (Virginia Pooled Financing Program), “A”, 5%, 8/01/29 (Prerefunded 8/01/19) | 100,000 | 114,716 | ||||||
$ | 28,345,883 | |||||||
Tax - Other - 1.5% | ||||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/24 | $ | 365,000 | $ | 404,876 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/29 | 120,000 | 132,949 | ||||||
Virgin Islands Public Finance Authority Rev. (Diageo), “A”, 6.625%, 10/01/29 | 830,000 | 928,397 | ||||||
Virgin Islands Public Finance Authority Rev., “A-1”, 5%, 10/01/29 | 250,000 | 267,265 | ||||||
Virgin Islands Public Finance Authority Rev., “A-1”, 5%, 10/01/39 | 285,000 | 300,401 | ||||||
Virgin Islands Public Finance Authority Rev., “B”, 5%, 10/01/25 | 250,000 | 274,365 | ||||||
Virgin Islands Public Finance Authority Rev., Matching Fund Loan Note, “A”, 5%, 10/01/29 | 1,645,000 | 1,784,841 | ||||||
$ | 4,093,094 | |||||||
Tax Assessment - 0.5% | ||||||||
Embrey Mill Community Development Authority, VA, Special Assessment Rev., 7.25%, 3/01/43 | $ | 750,000 | $ | 779,513 | ||||
Prince William County, VA, Cherry Hill Community Development Authority Rev. (Potomac Shores Project), 5.15%, 3/01/35 | 500,000 | 509,170 | ||||||
$ | 1,288,683 | |||||||
Tobacco - 2.4% | ||||||||
Buckeye, OH, Tobacco Settlement Financing Authority, “A-2”, 5.75%, 6/01/34 | $ | 275,000 | $ | 227,367 | ||||
Buckeye, OH, Tobacco Settlement Financing Authority, “A-2”, 6%, 6/01/42 | 1,110,000 | 932,911 | ||||||
Buckeye, OH, Tobacco Settlement Financing Authority, “A-2”, 6.5%, 6/01/47 | 1,230,000 | 1,102,055 | ||||||
Illinois Railsplitter Tobacco Settlement Authority, 6%, 6/01/28 | 1,575,000 | 1,859,996 |
45
Table of Contents
Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Tobacco - continued | ||||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.5%, 6/01/23 | $ | 740,000 | $ | 743,693 | ||||
Virgin Islands Tobacco Settlement Financing Corp., 5%, 5/15/21 | 145,000 | 145,004 | ||||||
Virginia Tobacco Settlement Financing Corp., “B-1”, 5%, 6/01/47 | 2,000,000 | 1,458,560 | ||||||
$ | 6,469,586 | |||||||
Toll Roads - 2.3% | ||||||||
Metropolitan Washington, DC, Airports Authority Rev. Senior Lien (Dulles Toll Road), 5%, 10/01/53 | $ | 2,000,000 | $ | 2,094,560 | ||||
Virginia Small Business Financing Authority Rev. (95 Express Lanes LLC), 5%, 7/01/34 | 2,500,000 | 2,636,375 | ||||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 6%, 1/01/37 | 565,000 | 638,094 | ||||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 5.5%, 1/01/42 | 905,000 | 982,242 | ||||||
$ | 6,351,271 | |||||||
Transportation - Special Tax - 3.2% | ||||||||
Commonwealth of Virginia, Transportation Board Grant Anticipation Rev., “A”, 5%, 9/15/27 | $ | 2,000,000 | $ | 2,316,080 | ||||
Virginia Port Authority Rev., 5%, 7/01/30 | 1,000,000 | 1,159,730 | ||||||
Virginia Port Authority Rev., 5%, 7/01/31 | 500,000 | 575,770 | ||||||
Virginia Port Authority, Port Fund Rev., 5%, 7/01/32 | 1,200,000 | 1,369,740 | ||||||
Washington, DC, Metropolitan Area Transit Authority Gross Rev., “A”, 5.25%, 7/01/29 | 1,485,000 | 1,669,986 | ||||||
Washington, DC, Metropolitan Area Transit Authority Gross Rev., “A”, 5.125%, 7/01/32 | 1,365,000 | 1,538,492 | ||||||
$ | 8,629,798 | |||||||
Universities - Colleges - 8.6% | ||||||||
Amherst, VA, Industrial Development Authority Rev. (Educational Facilities Sweet Briar), 5%, 9/01/26 | $ | 1,770,000 | $ | 1,671,588 | ||||
Massachusetts Development Finance Agency Rev. (Suffolk University), 5%, 7/01/30 | 615,000 | 655,867 | ||||||
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 | 1,161,350 | ||||||
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 | 194,948 | ||||||
University of Virginia (University Rev.), 5%, 9/01/25 | 3,760,000 | 4,398,110 | ||||||
University of Virginia, General Rev. Pledge Refunding, “A”, 5%, 6/01/43 | 685,000 | 776,708 | ||||||
Virginia College Building Authority, Educational Facilities Rev. (Marymount University Project), “A”, 5%, 7/01/35 | 1,000,000 | 1,025,540 |
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
Virginia College Building Authority, Educational Facilities Rev. (Marymount University), “B”, 5.25%, 7/01/35 | $ | 1,000,000 | $ | 1,044,950 | ||||
Virginia College Building Authority, Educational Facilities Rev. (Regent University), 5%, 6/01/26 | 2,000,000 | 2,007,440 | ||||||
Virginia College Building Authority, Educational Facilities Rev. (Richmond University), “A”, 5%, 3/01/21 | 2,115,000 | 2,497,202 | ||||||
Virginia College Building Authority, Educational Facilities Rev. (Roanoke College), 4.5%, 4/01/37 | 2,180,000 | 2,262,513 | ||||||
Virginia College Building Authority, Educational Facilities Rev. (Washington & Lee University), NATL, 5.25%, 1/01/31 | 1,000,000 | 1,206,800 | ||||||
Virginia College Building Authority, Educational Facilities Rev. (Washington and Lee University), “A”, 5%, 1/01/40 | 1,000,000 | 1,143,130 | ||||||
Virginia Small Business Financing Authority Rev. (Hampton University), 5.25%, 10/01/29 | 2,500,000 | 2,874,925 | ||||||
Virginia Small Business Financing Authority, Educational Facilities Rev. (Roanoke College), 5.5%, 4/01/33 | 500,000 | 566,985 | ||||||
$ | 23,488,056 | |||||||
Universities - Secondary Schools - 0.8% | ||||||||
Alexandria, VA, Industrial Development Authority, Educational Facilities Rev. (Episcopal High School), “A”, 5%, 1/01/40 | $ | 1,900,000 | $ | 2,064,027 | ||||
Utilities - Municipal Owned - 3.3% | ||||||||
Bristol, VA, Utility Systems Rev., ETM, AGM, 5.75%, 7/15/16 | $ | 240,000 | $ | 250,464 | ||||
Guam Power Authority Rev., “A”, 5.5%, 10/01/30 | 785,000 | 874,380 | ||||||
Guam Power Authority Rev., “A”, 5.5%, 10/01/40 | 1,250,000 | 1,372,238 | ||||||
Long Island, NY, Power Authority, Electric Systems Rev., “A”, 6%, 5/01/33 | 470,000 | 540,669 | ||||||
Puerto Rico Electric Power Authority Rev., “DDD”, AGM, 3.625%, 7/01/23 | 60,000 | 55,810 | ||||||
Puerto Rico Electric Power Authority Rev., “DDD”, AGM, 3.65%, 7/01/24 | 260,000 | 235,521 | ||||||
Puerto Rico Electric Power Authority Rev., “KK”, NATL, 5.5%, 7/01/16 | 20,000 | 20,256 | ||||||
Puerto Rico Electric Power Authority Rev., “LL”, NATL, 5.5%, 7/01/17 | 15,000 | 15,312 | ||||||
Puerto Rico Electric Power Authority Rev., “MM”, NATL, 5%, 7/01/20 | 5,000 | 4,968 | ||||||
Puerto Rico Electric Power Authority Rev., “PP”, NATL, 5%, 7/01/24 | 10,000 | 9,622 | ||||||
Puerto Rico Electric Power Authority Rev., “SS”, ASSD GTY, 4.375%, 7/01/30 | 30,000 | 26,590 | ||||||
Puerto Rico Electric Power Authority Rev., “UU”, NATL, 4.5%, 7/01/18 | 20,000 | 19,922 | ||||||
Puerto Rico Electric Power Authority Rev., “UU”, ASSD GTY, 4.25%, 7/01/27 | 185,000 | 169,676 |
46
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Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Utilities - Municipal Owned - continued | ||||||||
Richmond, VA, Public Utility Rev., “A”, 5%, 1/15/27 | $ | 2,555,000 | $ | 3,005,906 | ||||
Richmond, VA, Public Utility Rev., “A”, 5%, 1/15/38 | 2,000,000 | 2,268,540 | ||||||
$ | 8,869,874 | |||||||
Utilities - Other - 1.3% | ||||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/19 | $ | 945,000 | $ | 1,060,592 | ||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/21 | 555,000 | 632,911 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/22 | 290,000 | 333,619 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/24 | 215,000 | 249,503 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/26 | 1,140,000 | 1,320,850 | ||||||
$ | 3,597,475 | |||||||
Water & Sewer Utility Revenue - 18.0% | ||||||||
Fairfax County, VA, Water Authority Rev., 5%, 4/01/28 | $ | 1,000,000 | $ | 1,179,910 | ||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5.25%, 7/01/20 | 60,000 | 68,476 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5.25%, 7/01/21 | 175,000 | 201,446 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5.625%, 7/01/40 | 620,000 | 678,330 | ||||||
Hampton Roads, VA, Sanitation District Wastewater Rev., 5%, 4/01/33 (Prerefunded 4/01/18) | 745,000 | 823,359 | ||||||
Hampton Roads, VA, Sanitation District Wastewater Rev., 5%, 4/01/33 | 1,255,000 | 1,361,462 | ||||||
Hampton Roads, VA, Sanitation District Wastewater Rev., 5%, 4/01/38 | 3,750,000 | 4,068,113 | ||||||
James City, VA, Water & Sewer Rev., 5%, 1/15/40 | 1,290,000 | 1,388,130 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “C-7”, NATL, 5%, 7/01/32 | 80,000 | 87,336 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “D-1”, AGM, 5%, 7/01/35 | 50,000 | 54,741 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “D-1”, AGM, 5%, 7/01/37 | 110,000 | 119,830 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “D-6”, NATL, 5%, 7/01/36 | 100,000 | 107,854 | ||||||
Norfolk, VA, Water Rev., 5%, 11/01/28 | 1,000,000 | 1,170,360 | ||||||
Norfolk, VA, Water Rev. , 4.75%, 11/01/38 | 4,000,000 | 4,474,080 | ||||||
Upper Occoquan, VA, Sewage Authority Regional Sewage Rev., 5%, 7/01/41 | 2,000,000 | 2,153,560 | ||||||
Virginia Beach, VA, Water & Sewer System Rev., 5%, 10/01/22 | 1,310,000 | 1,590,170 | ||||||
Virginia Resources Authority, Clean Water Rev., 4.75%, 10/01/27 (Prerefunded 10/01/17) | 3,000,000 | 3,244,950 |
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - continued | ||||||||
Virginia Resources Authority, Clean Water Rev., 5%, 10/01/31 | $ | 1,000,000 | $ | 1,154,000 | ||||
Virginia Resources Authority, Infrastructure Rev., 5.25%, 11/01/33 | 1,830,000 | 2,023,980 | ||||||
Virginia Resources Authority, Infrastructure Rev., 5%, 11/01/38 | 2,035,000 | 2,240,657 | ||||||
Virginia Resources Authority, Infrastructure Rev. (Virginia Pooled Funding Program), “B”, 5%, 11/01/40 | 1,400,000 | 1,590,597 | ||||||
Virginia Resources Authority, Infrastructure Rev., Pooled Financing Program, 5%, 11/01/38 (Prerefunded 11/01/18) | 565,000 | 636,444 | ||||||
Virginia Resources Authority, Infrastructure Rev., Pooled Financing Program, 5%, 11/01/25 (Prerefunded 11/01/21) | 95,000 | 114,288 | ||||||
Virginia Resources Authority, Infrastructure Rev., Pooled Financing Program, 5.25%, 11/01/33 (Prerefunded 11/01/18) | 175,000 | 198,459 | ||||||
Virginia Resources Authority, Infrastructure Rev., Pooled Financing Program, 5.25%, 11/01/33 (Prerefunded 11/01/18) | 995,000 | 1,128,380 | ||||||
Virginia Resources Authority, Infrastructure Rev., Pooled Financing Program, “B”, 5%, 11/01/25 (u) | 1,245,000 | 1,479,483 | ||||||
Virginia Resources Authority, Infrastructure Rev., Pooled Financing Program, “B”, 5%, 11/01/27 (u) | 5,755,000 | 6,806,093 | ||||||
Virginia Resources Authority, Infrastructure Rev., Pooled Financing Program, “B”, 5%, 11/01/28 (u) | 3,000,000 | 3,527,160 | ||||||
Virginia Resources Authority, Infrastructure Rev., Unrefunded Balance, 5%, 11/01/25 | 1,500,000 | 1,758,945 | ||||||
Virginia Resources Authority, Water & Sewer Systems Rev. (Turkahoe Creek Project), Capital Appreciation, 0%, 11/01/33 | 2,245,000 | 1,176,649 | ||||||
Virginia Resources Authority, Water & Sewer Systems Rev. (Turkahoe Creek Project), Capital Appreciation, 0%, 11/01/34 | 2,250,000 | 1,121,220 | ||||||
Virginia Resources Authority, Water & Sewer Systems Rev. (Turkahoe Creek Project), Capital Appreciation, 0%, 11/01/35 | 1,950,000 | 925,041 | ||||||
Virginia Resources Authority, Water & Sewer Systems Rev. (Turkahoe Creek Project), Capital Appreciation, 0%, 11/01/36 | 1,250,000 | 564,538 | ||||||
$ | 49,218,041 | |||||||
Total Municipal Bonds (Identified Cost, $256,006,034) | $ | 271,514,297 | ||||||
Money Market Funds - 1.2% | ||||||||
MFS Institutional Money Market Portfolio, 0.12%, at Cost and Net Asset Value (v) | 3,270,334 | $ | 3,270,334 | |||||
Total Investments (Identified Cost, $259,276,368) | $ | 274,784,631 | ||||||
Other Assets, Less Liabilities - (0.7)% | (1,842,699) | |||||||
Net Assets - 100.0% | $ | 272,941,932 |
47
Table of Contents
Portfolio of Investments (unaudited) – continued
Derivative Contracts at 9/30/15
Futures Contracts at 9/30/15
Description | Currency | Contracts | Value | Expiration Date | Unrealized Appreciation (Depreciation) | |||||||||||||
Liability Derivatives | ||||||||||||||||||
Interest Rate Futures | ||||||||||||||||||
U.S. Treasury Note 10 yr (Short) | USD | 45 | $5,793,047 | December - 2015 | $(50,079 | ) | ||||||||||||
|
|
At September 30, 2015, the fund had cash collateral of $60,750 to cover any commitments for certain derivative contracts. Cash collateral is composed of “Deposits with brokers” on the Statements of Assets and Liabilities.
See Portfolio Footnotes and Notes to Financial Statements
48
Table of Contents
PORTFOLIO OF INVESTMENTS
9/30/15 (unaudited)
MFS WEST VIRGINIA MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
Municipal Bonds - 98.2% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 0.5% | ||||||||
Dallas and Fort Worth, TX, International Airport Rev., “B”, 5%, 11/01/44 | $ | 155,000 | $ | 170,694 | ||||
Dallas and Fort Worth, TX, International Airport Rev., “C”, 5%, 11/01/45 | 110,000 | 120,232 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, 5%, 12/01/44 | 60,000 | 65,382 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, BAM, 5%, 12/01/39 | 70,000 | 77,419 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/39 | 55,000 | 58,231 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/44 | 85,000 | 89,464 | ||||||
$ | 581,422 | |||||||
General Obligations - General Purpose - 4.0% | ||||||||
Guam Government, “A”, 5.25%, 11/15/37 | $ | 250,000 | $ | 273,283 | ||||
Guam Government, “A”, 6.75%, 11/15/29 | 35,000 | 42,874 | ||||||
Guam Government, “A”, 7%, 11/15/39 | 45,000 | 55,555 | ||||||
State of West Virginia, 4%, 6/01/22 | 2,000,000 | 2,209,500 | ||||||
State of West Virginia, 4%, 6/01/23 | 2,000,000 | 2,192,440 | ||||||
$ | 4,773,652 | |||||||
General Obligations - Schools - 8.4% | ||||||||
Hancock County, WV, Board of Education, 5%, 5/01/19 | $ | 1,130,000 | $ | 1,281,431 | ||||
Hancock County, WV, Board of Education, 4.5%, 5/01/32 | 1,405,000 | 1,505,893 | ||||||
Monongalia County, WV, Board of Education, 5%, 5/01/29 | 1,000,000 | 1,144,390 | ||||||
Monongalia County, WV, Board of Education, 5%, 5/01/31 | 2,000,000 | 2,266,780 | ||||||
Putnam County, WV, Board of Education, 4%, 5/01/20 | 2,500,000 | 2,799,200 | ||||||
Putnam County, WV, Board of Education, 4%, 5/01/25 | 1,000,000 | 1,077,050 | ||||||
$ | 10,074,744 | |||||||
Healthcare Revenue - Hospitals - 17.8% | ||||||||
Escambia County, FL, Health Facilities Authority (Baptist Hospital, Inc.), “A”, 6%, 8/15/36 | $ | 725,000 | $ | 820,823 | ||||
Illinois Finance Authority Rev. (Provena Health), “A”, 6%, 5/01/28 | 450,000 | 516,780 | ||||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 7%, 8/15/44 (Prerefunded 8/15/19) | 420,000 | 514,109 | ||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 5.75%, 6/01/25 | 340,000 | 387,131 |
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 | $ | 410,000 | $ | 463,821 | ||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6.5%, 3/01/45 | 290,000 | 328,364 | ||||||
Louisville & Jefferson County, KY, Metropolitan Government Healthcare Systems Rev. (Norton Healthcare, Inc.), 5.25%, 10/01/36 | 725,000 | 743,459 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Caregroup, Inc.), 5.125%, 7/01/38 | 675,000 | 715,534 | ||||||
Michigan Hospital Finance Authority Rev. (Henry Ford Health System), 5.75%, 11/15/39 | 855,000 | 967,185 | ||||||
Monongalia County, WV, Building Commission Hospital Rev. (Monongalia General Hospital), 6.5%, 7/01/41 | 1,100,000 | 1,286,131 | ||||||
Monongalia County, WV, Building Commission Improvement Rev. (Monongalia Health System Obligated Group), 5%, 7/01/29 | 1,000,000 | 1,137,150 | ||||||
Princeton, WV, Hospital Rev. (Princeton Community Hospital), “A”, 5%, 5/01/27 | 750,000 | 830,055 | ||||||
West Virginia Hospital Finance Authority Hospital Rev. (Camden Clark Memorial Hospital), ASSD GTY, 5.875%, 2/15/34 | 1,000,000 | 1,114,390 | ||||||
West Virginia Hospital Finance Authority Hospital Rev. (Charleston Area Medical Center), “A”, 5%, 9/01/28 | 1,000,000 | 1,130,680 | ||||||
West Virginia Hospital Finance Authority Hospital Rev. (Charleston Area Medical Center), “A”, ETM, 6.5%, 9/01/23 | 2,000,000 | 2,421,320 | ||||||
West Virginia Hospital Finance Authority Hospital Rev. (Thomas Health System), 6.5%, 10/01/38 | 500,000 | 520,815 | ||||||
West Virginia Hospital Finance Authority Hospital Rev. (United Hospital Center, Inc.), “A”, AMBAC, 5%, 6/01/22 | 2,500,000 | 2,564,525 | ||||||
West Virginia Hospital Finance Authority Hospital Rev. (Valley Health System Obligation Group), 5%, 1/01/44 | 1,000,000 | 1,091,290 | ||||||
West Virginia Hospital Finance Authority Hospital Rev. (Valley Health System Obligation Group), 5%, 1/01/44 | 1,000,000 | 1,092,420 | ||||||
West Virginia Hospital Finance Authority Hospital Rev. (West Virginia United Health System), “A”, 5.5%, 6/01/44 | 1,460,000 | 1,646,471 | ||||||
West Virginia Hospital Finance Authority Hospital Rev. (West Virginia United Health System), “E”, 5.625%, 6/01/35 | 1,000,000 | 1,102,330 | ||||||
$ | 21,394,783 |
49
Table of Contents
Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Miscellaneous Revenue - Other - 9.0% | ||||||||
Florida Citizens Property Insurance Corp., “A-1”, 5%, 6/01/20 | $ | 605,000 | $ | 693,076 | ||||
Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/40 | 140,000 | 146,818 | ||||||
Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/44 | 215,000 | 224,602 | ||||||
New York Liberty Development Corp., Liberty Rev. (3 World Trade Center Project), “1”, 5%, 11/15/44 | 580,000 | 585,812 | ||||||
New York Liberty Development Corp., Liberty Rev. (7 World Trade Center Project), 5%, 9/15/40 | 1,085,000 | 1,243,052 | ||||||
West Virginia Building Commission, Lease Rev. (WV Regional Jail), “A”, AMBAC, 5.375%, 7/01/18 | 5,075,000 | 5,518,555 | ||||||
West Virginia, Higher Education Policy Commission Rev. (Community & Technology-Capital Improvement), “A”, 5%, 7/01/39 | 2,200,000 | 2,449,238 | ||||||
$ | 10,861,153 | |||||||
Sales & Excise Tax Revenue - 2.2% | ||||||||
Guam Government Business Privilege Tax Rev., “A”, 5.25%, 1/01/36 | $ | 335,000 | $ | 368,044 | ||||
Guam Government Business Privilege Tax Rev., “A”, 5.125%, 1/01/42 | 790,000 | 853,658 | ||||||
Massachusetts Bay Transportation Authority, Sales Tax Rev., “A”, 5%, 7/01/31 | 1,000,000 | 1,241,000 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., 5.25%, 8/01/57 | 280,000 | 173,603 | ||||||
$ | 2,636,305 | |||||||
Single Family Housing - Local - 0.9% | ||||||||
West Virginia Housing Development Fund, “C”, 4.7%, 11/01/35 | $ | 635,000 | $ | 677,920 | ||||
West Virginia Housing Development Fund, “C”, 4.9%, 11/01/43 | 375,000 | 376,541 | ||||||
$ | 1,054,461 | |||||||
Single Family Housing - State - 0.3% | ||||||||
West Virginia Housing Development Fund Rev., “A”, 2.95%, 11/01/21 | $ | 300,000 | $ | 315,525 | ||||
State & Local Agencies - 9.4% | ||||||||
FYI Properties Lease Rev. (Washington State Project), 5.5%, 6/01/34 | $ | 545,000 | $ | 614,384 | ||||
West Virginia Building Commission, Lease Rev., “B”, AMBAC, 5.375%, 7/01/18 | 1,185,000 | 1,288,569 | ||||||
West Virginia Economic Development Authority, Auto Lease Rev., 5.2%, 5/01/33 | 1,000,000 | 1,003,670 | ||||||
West Virginia Economic Development Authority, Lease Rev. (Correctional Juvenile Public Safety Facilities), 5%, 6/01/22 | 1,000,000 | 1,168,060 | ||||||
West Virginia Economic Development Authority, Lease Rev. (Correctional Juvenile Public Safety Facilities), “A”, 5%, 6/01/29 | 2,000,000 | 2,271,120 |
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 | $ | 647,722 | ||||
West Virginia Economic Development Authority, Lease Rev. (State Office Building), “B”, NATL, 5.25%, 1/01/30 | 1,355,000 | 1,360,149 | ||||||
West Virginia Hospital Finance Authority Hospital Rev. (Veterans Nursing Home), 5.5%, 3/01/34 | 795,000 | 795,731 | ||||||
West Virginia School Building Authority Rev., “A”, FGIC, 5%, 7/01/20 | 2,000,000 | 2,147,020 | ||||||
$ | 11,296,425 | |||||||
Tax - Other - 8.4% | ||||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/24 | $ | 160,000 | $ | 177,480 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/29 | 55,000 | 60,935 | ||||||
Virgin Islands Public Finance Authority Rev. (Diageo), “A”, 6.625%, 10/01/29 | 360,000 | 402,678 | ||||||
Virgin Islands Public Finance Authority Rev., “A”, 5%, 10/01/24 | 415,000 | 475,914 | ||||||
Virgin Islands Public Finance Authority Rev., “A”, 5%, 10/01/29 | 415,000 | 456,322 | ||||||
Virgin Islands Public Finance Authority Rev., “A”, 5%, 10/01/34 | 420,000 | 452,147 | ||||||
Virgin Islands Public Finance Authority Rev., “A-1”, 5%, 10/01/29 | 110,000 | 117,597 | ||||||
Virgin Islands Public Finance Authority Rev., “A-1”, 5%, 10/01/39 | 120,000 | 126,485 | ||||||
Virgin Islands Public Finance Authority Rev., “B”, 5%, 10/01/25 | 110,000 | 120,721 | ||||||
Virgin Islands Public Finance Authority Rev., “B”, AGM, 5%, 10/01/25 | 280,000 | 316,072 | ||||||
Virgin Islands Public Finance Authority Rev., Matching Fund Loan Note, “A”, AGM, 5%, 10/01/25 | 275,000 | 313,948 | ||||||
West Virginia Economic Development Authority, Lottery Rev., “A”, 5%, 6/15/40 | 2,475,000 | 2,794,325 | ||||||
West Virginia Housing Development Fund, “A”, 3.8%, 11/01/24 | 1,110,000 | 1,181,406 | ||||||
West Virginia School Building Authority, Excess Lottery Rev., 5%, 7/01/26 | 1,000,000 | 1,097,760 | ||||||
West Virginia School Building Authority, Excess Lottery Rev., 5%, 7/01/28 | 750,000 | 821,183 | ||||||
West Virginia School Building Authority, Excess Lottery Rev., “B”, 5%, 7/01/30 | 1,000,000 | 1,137,050 | ||||||
$ | 10,052,023 | |||||||
Tax Assessment - 0.6% | ||||||||
Morgantown, WV, Tax Increment Rev., Parking Garage Project, “A”, 5%, 6/01/33 | $ | 455,000 | $ | 455,387 | ||||
Ohio County, WV, Commission Tax Increment Rev. (Fort Henry Centre), “A”, 5.85%, 6/01/34 | 300,000 | 307,005 | ||||||
$ | 762,392 |
50
Table of Contents
Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Tobacco - 0.7% | ||||||||
Illinois Railsplitter Tobacco Settlement Authority, 6%, 6/01/28 | $ | 620,000 | $ | 732,189 | ||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.75%, 6/01/34 | 190,000 | 146,868 | ||||||
$ | 879,057 | |||||||
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 | $ | 155,000 | $ | 192,440 | ||||
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 | 145,518 | ||||||
$ | 337,958 | |||||||
Transportation - Special Tax - 0.5% | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “AA-1”, AGM, 4.95%, 7/01/26 | $ | 560,000 | $ | 552,978 | ||||
Universities - Colleges - 18.5% | ||||||||
Concord University, WV, Board of Governors Rev., AGM, 5%, 6/01/19 | $ | 355,000 | $ | 397,099 | ||||
Concord University, WV, Board of Governors Rev., AGM, 5%, 6/01/21 | 380,000 | 435,909 | ||||||
Concord University, WV, Board of Governors Rev., AGM, 5%, 6/01/22 | 400,000 | 462,072 | ||||||
Concord University, WV, Board of Governors Rev., AGM, 5%, 6/01/23 | 420,000 | 479,027 | ||||||
Concord University, WV, Board of Governors Rev., AGM, 5%, 6/01/24 | 440,000 | 498,335 | ||||||
Fairmont State University, WV, Board of Governors Rev., “A”, 5%, 6/01/24 | 765,000 | 913,655 | ||||||
Fairmont State University, WV, Board of Governors Rev., “A”, 5%, 6/01/25 | 805,000 | 965,606 | ||||||
Fairmont State University, WV, Board of Governors Rev., “A”, 5%, 6/01/26 | 840,000 | 995,182 | ||||||
Fairmont State University, WV, Board of Governors Rev., “A”, 5%, 6/01/32 | 4,035,000 | 4,426,234 | ||||||
Marshall University, WV, University Rev., 5%, 5/01/30 | 2,000,000 | 2,248,580 | ||||||
Marshall University, WV, University Rev., 5%, 5/01/41 | 1,000,000 | 1,107,940 | ||||||
New York Dormitory Authority Rev. (New York University), “1”, AMBAC, 5.5%, 7/01/40 | 555,000 | 701,392 | ||||||
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 | 1,247,889 | ||||||
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 | 100,411 |
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
Shepherd University Board of Governors, WV Rev. (Residence Facilities Projects), NATL, 5%, 6/01/35 | $ | 1,675,000 | $ | 1,680,662 | ||||
West Virginia University, University Systems Rev., “A”, NATL, 5.5%, 4/01/20 | 1,700,000 | 2,006,799 | ||||||
West Virginia University, University Systems Rev., “A”, NATL, 5.25%, 4/01/28 | 3,035,000 | 3,610,618 | ||||||
$ | 22,277,410 | |||||||
Utilities - Investor Owned - 2.3% | ||||||||
Michigan Strategic Fund Ltd. Obligation Rev. (Detroit Edison Co.), 5.625%, 7/01/20 | $ | 470,000 | $ | 551,531 | ||||
Michigan Strategic Fund Ltd. Obligation Rev. (Detroit Edison Co.), 5.5%, 8/01/29 (Put Date 8/01/16) | 340,000 | 351,992 | ||||||
Pleasants County, WV, Pollution Control Rev. (Allegheny Community), “F”, 5.25%, 10/15/37 | 300,000 | 313,569 | ||||||
West Virginia Economic Development Authority, Solid Waste Disposal Facilities Rev. (Appalachian Power Company- Amos Project), “A”, FRN, 1.9%, 3/01/40 (Put Date 4/01/19) | 1,500,000 | 1,503,660 | ||||||
$ | 2,720,752 | |||||||
Utilities - Municipal Owned - 1.3% | ||||||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/33 | $ | 435,000 | $ | 501,712 | ||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/24 | 605,000 | 716,538 | ||||||
Guam Power Authority Rev., “A”, 5.5%, 10/01/30 | 325,000 | 362,005 | ||||||
$ | 1,580,255 | |||||||
Utilities - Other - 1.8% | ||||||||
California M-S-R Energy Authority Gas Rev., “A”, 6.5%, 11/01/39 | $ | 615,000 | $ | 821,191 | ||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/19 | 480,000 | 538,714 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/21 | 245,000 | 279,393 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/22 | 125,000 | 143,801 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “C”, 5%, 2/01/21 | 290,000 | 323,388 | ||||||
Texas Gas Acquisition & Supply Corp III., Gas Supply Rev., 5%, 12/15/31 | 70,000 | 75,938 | ||||||
$ | 2,182,425 | |||||||
Water & Sewer Utility Revenue - 11.3% | ||||||||
Berkeley County, WV, Public Service Sewer District, “A”, 5%, 3/01/47 | $ | 1,000,000 | $ | 1,041,600 | ||||
Berkeley County, WV, Public Service Sewer District, “C”, BAM, 4.5%, 10/01/32 | 1,500,000 | 1,643,370 | ||||||
Fairmont, WV, Waterworks Rev., AMBAC, 5.25%, 7/01/22 | 200,000 | 226,990 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5.625%, 7/01/40 | 515,000 | 563,451 |
51
Table of Contents
Portfolio of Investments (unaudited) – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - continued | ||||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), “A”, 5%, 7/01/29 | $ | 20,000 | $ | 22,220 | ||||
Guam Waterworks Authority Rev. (Water and Wastewater System), “A”, 5%, 7/01/35 | 20,000 | 21,850 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “C-7”, NATL, 5%, 7/01/32 | 35,000 | 38,210 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “D-1”, AGM, 5%, 7/01/35 | 20,000 | 21,896 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “D-1”, AGM, 5%, 7/01/37 | 50,000 | 54,468 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “D-6”, NATL, 5%, 7/01/36 | 40,000 | 43,142 | ||||||
Mississippi Development Bank Special Obligation (City of Jackson Water and Sewer System Rev. Bond Project), AGM, 6.875%, 12/01/40 | 75,000 | 95,899 | ||||||
Parkersburg, WV, Waterworks & Sewerage System, “A”, BAM, 4%, 8/01/22 | 500,000 | 549,970 | ||||||
Parkersburg, WV, Waterworks & Sewerage System, “A”, BAM, 4%, 8/01/23 | 625,000 | 681,488 |
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - continued | ||||||||
West Virginia Water Development Authority Rev. (Loan Program IV), “A”, AGM, 5%, 11/01/44 | $ | 2,000,000 | $ | 2,007,160 | ||||
West Virginia Water Development Authority Rev. (Loan Program IV), “B”, AMBAC, 5.125%, 11/01/24 | 2,140,000 | 2,149,031 | ||||||
Wheeling, WV, Combined Waterworks and Sewerage System Rev., 5%, 6/01/38 | 3,000,000 | 3,340,800 | ||||||
Wheeling, WV, Combined Waterworks and Sewerage System Rev., 5%, 6/01/43 | 1,000,000 | 1,107,890 | ||||||
$ | 13,609,435 | |||||||
Total Municipal Bonds (Identified Cost, $111,402,257) | $ | 117,943,155 | ||||||
Money Market Funds - 0.8% | ||||||||
MFS Institutional Money Market Portfolio, 0.12%, at Cost and Net Asset Value (v) | 961,556 | $ | 961,556 | |||||
Total Investments (Identified Cost, $112,363,813) | $ | 118,904,711 | ||||||
Other Assets, Less Liabilities - 1.0% | 1,251,792 | |||||||
Net Assets - 100.0% | $ | 120,156,503 |
Portfolio Footnotes:
(a) | Non-income producing security. |
(d) | In default. |
(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 $717,750, representing 0.4% of net assets |
(q) | Interest received was less than stated coupon rate. |
(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 the current rate may not be the rate reported at period end. | |
LOC | Letter of Credit | |
Insurers | ||
AGM | Assured Guaranty Municipal | |
AMBAC | AMBAC Indemnity Corp. | |
ASSD GTY | Assured Guaranty Insurance Co. | |
BAM | Build America Mutual | |
CIFG | CDC IXIS 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
52
Table of Contents
Financial Statements
STATEMENTS OF ASSETS AND LIABILITIES
At 9/30/15 (unaudited)
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 | $77,619,893 | $173,073,083 | $304,535,230 | $104,317,690 | ||||||||||||
Underlying affiliated funds, at cost and net asset value | 1,542,269 | 4,374,684 | 3,268,186 | 1,843,816 | ||||||||||||
Total investments, at identified cost | $79,162,162 | $177,447,767 | $307,803,416 | $106,161,506 | ||||||||||||
Unrealized appreciation (depreciation) | 5,759,364 | 13,536,537 | 22,841,297 | 7,960,224 | ||||||||||||
Total investments, at value | $84,921,526 | $190,984,304 | $330,644,713 | $114,121,730 | ||||||||||||
Deposits with brokers | — | — | — | 37,800 | ||||||||||||
Receivables for | ||||||||||||||||
Daily variation margin on open futures contracts | — | — | — | 2,187 | ||||||||||||
Investments sold | 1,081,257 | 1,515,000 | 404,910 | 15,000 | ||||||||||||
Fund shares sold | 55,207 | 37,323 | 258,836 | 90,306 | ||||||||||||
Interest | 1,057,300 | 2,563,346 | 4,729,075 | 1,598,797 | ||||||||||||
Receivable from distributor | 89 | — | — | — | ||||||||||||
Other assets | 93 | 165 | 264 | 114 | ||||||||||||
Total assets | $87,115,472 | $195,100,138 | $336,037,798 | $115,865,934 | ||||||||||||
Liabilities | ||||||||||||||||
Payables for | ||||||||||||||||
Distributions | $28,216 | $66,890 | $115,525 | $46,488 | ||||||||||||
Investments purchased | 2,059,395 | — | — | 497,655 | ||||||||||||
Fund shares reacquired | 69,885 | 201,935 | 429,448 | 106,283 | ||||||||||||
Payable to affiliates | ||||||||||||||||
Investment adviser | 1,672 | 3,775 | 6,446 | 2,248 | ||||||||||||
Shareholder servicing costs | 37,864 | 70,027 | 178,221 | 55,715 | ||||||||||||
Distribution and service fees | — | 3,177 | 5,423 | 2,356 | ||||||||||||
Payable for independent Trustees’ compensation | 2,504 | 3,196 | 5,655 | 2,399 | ||||||||||||
Accrued expenses and other liabilities | 30,451 | 40,197 | 50,604 | 40,764 | ||||||||||||
Total liabilities | $2,229,987 | $389,197 | $791,322 | $753,908 | ||||||||||||
Net assets | $84,885,485 | $194,710,941 | $335,246,476 | $115,112,026 | ||||||||||||
Net assets consist of | ||||||||||||||||
Paid-in capital | $81,181,447 | $186,532,211 | $321,578,171 | $111,930,325 | ||||||||||||
Unrealized appreciation (depreciation) on investments | 5,759,364 | 13,536,537 | 22,841,297 | 7,929,063 | ||||||||||||
Accumulated net realized gain (loss) on investments | (2,140,312 | ) | (5,784,465 | ) | (9,633,952 | ) | (4,882,972 | ) | ||||||||
Undistributed net investment income | 84,986 | 426,658 | 460,960 | 135,610 | ||||||||||||
Net assets | $84,885,485 | $194,710,941 | $335,246,476 | $115,112,026 |
53
Table of Contents
Statements of Assets and Liabilities (unaudited) – continued
Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | |||||||||||||
Net Assets | ||||||||||||||||
Class A | $83,249,448 | $164,398,635 | $275,211,710 | $109,354,063 | ||||||||||||
Class B | 1,636,037 | 5,338,497 | 4,493,437 | 5,757,963 | ||||||||||||
Class C | — | 24,973,809 | 55,541,329 | — | ||||||||||||
Total net assets | $84,885,485 | $194,710,941 | $335,246,476 | $115,112,026 | ||||||||||||
Shares of beneficial interest outstanding | ||||||||||||||||
Class A | 8,424,303 | 14,785,425 | 23,202,148 | 10,587,487 | ||||||||||||
Class B | 165,358 | 481,398 | 379,281 | 556,094 | ||||||||||||
Class C | — | 2,248,808 | 4,685,321 | — | ||||||||||||
Total shares of beneficial interest outstanding | 8,589,661 | 17,515,631 | 28,266,750 | 11,143,581 | ||||||||||||
Class A shares | ||||||||||||||||
Net asset value per share | $9.88 | $11.12 | $11.86 | $10.33 | ||||||||||||
Offering price per share (100 / 95.75 × net asset value per share) | $10.32 | $11.61 | $12.39 | $10.79 | ||||||||||||
Class B shares | ||||||||||||||||
Net asset value and offering price per share | $9.89 | $11.09 | $11.85 | $10.35 | ||||||||||||
Class C shares | ||||||||||||||||
Net asset value and offering price per share | $— | $11.11 | $11.85 | $— |
On sales of $100,000 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
54
Table of Contents
Statements of Assets and Liabilities (unaudited) – continued
At 9/30/15 | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | ||||||||||||
Assets | ||||||||||||||||
Investments | ||||||||||||||||
Non-affiliated issuers, at identified cost | $158,476,093 | $93,698,066 | $256,006,034 | $111,402,257 | ||||||||||||
Underlying affiliated funds, at cost and net asset value | 1,283,805 | 1,596,771 | 3,270,334 | 961,556 | ||||||||||||
Total investments, at identified cost | $159,759,898 | $95,294,837 | $259,276,368 | $112,363,813 | ||||||||||||
Unrealized appreciation (depreciation) | 10,060,307 | 6,089,808 | 15,508,263 | 6,540,898 | ||||||||||||
Total investments, at value | $169,820,205 | $101,384,645 | $274,784,631 | $118,904,711 | ||||||||||||
Deposits with brokers | 37,800 | — | 60,750 | — | ||||||||||||
Receivables for | ||||||||||||||||
Daily variation margin on open futures contracts | 2,187 | — | 3,516 | — | ||||||||||||
Investments sold | 40,288 | 40,472 | — | — | ||||||||||||
Fund shares sold | 150,358 | 7,597 | 35,265 | 1,955 | ||||||||||||
Interest | 2,321,046 | 1,397,346 | 3,828,035 | 1,763,915 | ||||||||||||
Receivable from investment adviser | 4,276 | 3,251 | 10,613 | 3,848 | ||||||||||||
Other assets | 153 | 110 | 233 | 118 | ||||||||||||
Total assets | $172,376,313 | $102,833,421 | $278,723,043 | $120,674,547 | ||||||||||||
Liabilities | ||||||||||||||||
Payables for | ||||||||||||||||
Distributions | $30,198 | $26,494 | $90,589 | $19,720 | ||||||||||||
Interest expense and fees | — | — | 13,404 | — | ||||||||||||
Fund shares reacquired | 373,109 | 97,450 | 471,983 | 387,954 | ||||||||||||
Payable to the holders of the floating rate certificates from trust assets | — | — | 5,004,812 | — | ||||||||||||
Payable to affiliates | ||||||||||||||||
Shareholder servicing costs | 77,026 | 53,525 | 142,243 | 69,289 | ||||||||||||
Distribution and service fees | 1,793 | 1,265 | 3,870 | 1,318 | ||||||||||||
Payable for independent Trustees’ compensation | 5,688 | 3,250 | 5,689 | 5,696 | ||||||||||||
Accrued expenses and other liabilities | 40,781 | 28,995 | 48,521 | 34,067 | ||||||||||||
Total liabilities | $528,595 | $210,979 | $5,781,111 | $518,044 | ||||||||||||
Net assets | $171,847,718 | $102,622,442 | $272,941,932 | $120,156,503 | ||||||||||||
Net assets consist of | ||||||||||||||||
Paid-in capital | $168,763,234 | $99,293,804 | $264,732,022 | $118,015,947 | ||||||||||||
Unrealized appreciation (depreciation) on investments | 10,029,146 | 6,089,808 | 15,458,184 | 6,540,898 | ||||||||||||
Accumulated net realized gain (loss) on investments | (7,074,371 | ) | (3,371,324 | ) | (7,482,879 | ) | (4,530,785 | ) | ||||||||
Undistributed net investment income | 129,709 | 610,154 | 234,605 | 130,443 | ||||||||||||
Net assets | $171,847,718 | $102,622,442 | $272,941,932 | $120,156,503 |
55
Table of Contents
Statements of Assets and Liabilities (unaudited) – continued
South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | |||||||||||||
Net Assets | ||||||||||||||||
Class A | $167,489,970 | $100,778,024 | $247,244,340 | $119,005,652 | ||||||||||||
Class B | 4,357,748 | 1,844,418 | 1,602,009 | 1,150,851 | ||||||||||||
Class C | — | — | 24,095,583 | — | ||||||||||||
Total net assets | $171,847,718 | $102,622,442 | $272,941,932 | $120,156,503 | ||||||||||||
Shares of beneficial interest outstanding | ||||||||||||||||
Class A | 13,766,002 | 9,558,407 | 21,805,422 | 10,610,205 | ||||||||||||
Class B | 358,355 | 175,084 | 141,373 | 102,647 | ||||||||||||
Class C | — | — | 2,125,571 | — | ||||||||||||
Total shares of beneficial interest outstanding | 14,124,357 | 9,733,491 | 24,072,366 | 10,712,852 | ||||||||||||
Class A shares | ||||||||||||||||
Net asset value per share | $12.17 | $10.54 | $11.34 | $11.22 | ||||||||||||
Offering price per share (100 / 95.75 × net asset value per share) | $12.71 | $11.01 | $11.84 | $11.72 | ||||||||||||
Class B shares | ||||||||||||||||
Net asset value and offering price per share | $12.16 | $10.53 | $11.33 | $11.21 | ||||||||||||
Class C shares | ||||||||||||||||
Net asset value and offering price per share | $— | $— | $11.34 | $— |
On sales of $1000,000 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
56
Table of Contents
Financial Statements
Six months ended 9/30/15 (unaudited)
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 | $1,869,520 | $4,572,589 | $7,384,729 | $2,539,569 | ||||||||||||
Dividends from underlying affiliated funds | 574 | 3,505 | 2,148 | 1,731 | ||||||||||||
Total investment income | $1,870,094 | $4,576,094 | $7,386,877 | $2,541,300 | ||||||||||||
Expenses | ||||||||||||||||
Management fee | $191,042 | $433,898 | $756,883 | $259,416 | ||||||||||||
Distribution and service fees | 112,540 | 354,348 | 646,891 | 166,582 | ||||||||||||
Shareholder servicing costs | 32,425 | 65,906 | 147,874 | 51,331 | ||||||||||||
Administrative services fee | 11,460 | 19,839 | 30,982 | 13,818 | ||||||||||||
Independent Trustees’ compensation | 1,882 | 2,995 | 6,275 | 2,929 | ||||||||||||
Custodian fee | 12,512 | 18,994 | 25,895 | 15,851 | ||||||||||||
Shareholder communications | 3,811 | 6,281 | 9,650 | 6,084 | ||||||||||||
Audit and tax fees | 25,442 | 25,461 | 25,483 | 25,447 | ||||||||||||
Legal fees | 3,387 | 4,921 | 3,582 | 4,601 | ||||||||||||
Miscellaneous | 22,004 | 28,934 | 31,520 | 22,936 | ||||||||||||
Total expenses | $416,505 | $961,577 | $1,685,035 | $568,995 | ||||||||||||
Fees paid indirectly | — | (1 | ) | — | — | |||||||||||
Reduction of expenses by investment adviser and distributor | (69,452 | ) | (8,855 | ) | (16,429 | ) | (90,541 | ) | ||||||||
Net expenses | $347,053 | $952,721 | $1,668,606 | $478,454 | ||||||||||||
Net investment income | $1,523,041 | $3,623,373 | $5,718,271 | $2,062,846 | ||||||||||||
Realized and unrealized gain (loss) on investments | ||||||||||||||||
Realized gain (loss) on investments (identified cost basis) | $40,318 | $(16,247 | ) | $185,163 | $76,581 | |||||||||||
Change in unrealized appreciation (depreciation) | ||||||||||||||||
Investments | $(1,187,003 | ) | $(2,551,616 | ) | $(4,314,215 | ) | $(1,379,087 | ) | ||||||||
Futures contracts | — | — | — | (31,161 | ) | |||||||||||
Net unrealized gain (loss) on investments | $(1,187,003 | ) | $(2,551,616 | ) | $(4,314,215 | ) | $(1,410,248 | ) | ||||||||
Net realized and unrealized gain (loss) on investments | $(1,146,685 | ) | $(2,567,863 | ) | $(4,129,052 | ) | $(1,333,667 | ) | ||||||||
Change in net assets from operations | $376,356 | $1,055,510 | $1,589,219 | $729,179 |
See Notes to Financial Statements
57
Table of Contents
Statements of Operations (unaudited) – continued
Six months ended 9/30/15 | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | ||||||||||||
Net Investment income | ||||||||||||||||
Interest | $3,403,828 | $2,126,607 | $5,890,052 | $2,536,875 | ||||||||||||
Dividends from underlying affiliated funds | 2,101 | 2,087 | 2,321 | 578 | ||||||||||||
Total investment income | $3,405,929 | $2,128,694 | $5,892,373 | $2,537,453 | ||||||||||||
Expenses | ||||||||||||||||
Management fee | $387,839 | $231,935 | $623,581 | $270,244 | ||||||||||||
Distribution and service fees | 232,794 | 136,147 | 446,352 | 155,010 | ||||||||||||
Shareholder servicing costs | 68,974 | 44,303 | 121,585 | 54,647 | ||||||||||||
Administrative services fee | 18,249 | 12,870 | 26,378 | 14,193 | ||||||||||||
Independent Trustees’ compensation | 3,303 | 2,931 | 6,221 | 3,249 | ||||||||||||
Custodian fee | 17,167 | 11,900 | 24,646 | 13,339 | ||||||||||||
Shareholder communications | 5,972 | 3,936 | 8,603 | 4,268 | ||||||||||||
Audit and tax fees | 25,457 | 25,446 | 25,475 | 25,448 | ||||||||||||
Legal fees | 6,069 | 3,586 | 3,300 | 3,656 | ||||||||||||
Interest expense and fees | — | — | 14,237 | — | ||||||||||||
Miscellaneous | 23,038 | 21,538 | 31,735 | 21,582 | ||||||||||||
Total expenses | $788,862 | $494,592 | $1,332,113 | $565,636 | ||||||||||||
Fees paid indirectly | (1 | ) | — | (1 | ) | — | ||||||||||
Reduction of expenses by investment adviser and distributor | (21,980 | ) | (13,888 | ) | (40,752 | ) | (27,621 | ) | ||||||||
Net expenses | $766,881 | $480,704 | $1,291,360 | $538,015 | ||||||||||||
Net investment income | $2,639,048 | $1,647,990 | $4,601,013 | $1,999,438 | ||||||||||||
Realized and unrealized gain (loss) on investments | ||||||||||||||||
Realized gain (loss) (identified cost basis) | $213,151 | $(37,003 | ) | $410,752 | $(14,616 | ) | ||||||||||
Change in unrealized appreciation (depreciation) | ||||||||||||||||
Investments | $(2,051,595 | ) | $(1,314,665 | ) | $(3,263,781 | ) | $(1,639,629 | ) | ||||||||
Futures contracts | (31,161 | ) | — | (50,079 | ) | — | ||||||||||
Net unrealized gain (loss) on investments | $(2,082,756 | ) | $(1,314,665 | ) | $(3,313,860 | ) | $(1,639,629 | ) | ||||||||
Net realized and unrealized gain (loss) on investments | $(1,869,605 | ) | $(1,351,668 | ) | $(2,903,108 | ) | $(1,654,245 | ) | ||||||||
Change in net assets from operations | $769,443 | $296,322 | $1,697,905 | $345,193 |
See Notes to Financial Statements
58
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.
Six months ended 9/30/15 (unaudited) | Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | ||||||||||||
Change in net assets | ||||||||||||||||
From operations | ||||||||||||||||
Net investment income | $1,523,041 | $3,623,373 | $5,718,271 | $2,062,846 | ||||||||||||
Net realized gain (loss) on investments | 40,318 | (16,247 | ) | 185,163 | 76,581 | |||||||||||
Net unrealized gain (loss) on investments | (1,187,003 | ) | (2,551,616 | ) | (4,314,215 | ) | (1,410,248 | ) | ||||||||
Change in net assets from operations | $376,356 | $1,055,510 | $1,589,219 | $729,179 | ||||||||||||
Distributions declared to shareholders | ||||||||||||||||
From net investment income | $(1,485,317 | ) | $(3,267,526 | ) | $(5,456,013 | ) | $(2,009,870 | ) | ||||||||
Change in net assets from fund share transactions | $(1,587,962 | ) | $1,805,450 | $(2,966,703 | ) | $(197,075 | ) | |||||||||
Total change in net assets | $(2,696,923 | ) | $(406,566 | ) | $(6,833,497 | ) | $(1,477,766 | ) | ||||||||
Net assets | ||||||||||||||||
At beginning of period | 87,582,408 | 195,117,507 | 342,079,973 | 116,589,792 | ||||||||||||
At end of period | $84,885,485 | $194,710,941 | $335,246,476 | $115,112,026 | ||||||||||||
Undistributed net investment income included in net assets at end of period | $84,986 | $426,658 | $460,960 | $135,610 | ||||||||||||
Six months ended 9/30/15 (unaudited) | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | ||||||||||||
Change in net assets | ||||||||||||||||
From operations | ||||||||||||||||
Net investment income | $2,639,048 | $1,647,990 | $4,601,013 | $1,999,438 | ||||||||||||
Net realized gain (loss) on investments | 213,151 | (37,003 | ) | 410,752 | (14,616 | ) | ||||||||||
Net unrealized gain (loss) on investments | (2,082,756 | ) | (1,314,665 | ) | (3,313,860 | ) | (1,639,629 | ) | ||||||||
Change in net assets from operations | $769,443 | $296,322 | $1,697,905 | $345,193 | ||||||||||||
Distributions declared to shareholders | ||||||||||||||||
From net investment income | $(2,525,524 | ) | $(1,517,986 | ) | $(4,288,347 | ) | $(1,856,531 | ) | ||||||||
Change in net assets from fund share transactions | $(1,918,841 | ) | $(531,090 | ) | $(6,701,707 | ) | $(1,220,546 | ) | ||||||||
Total change in net assets | $(3,674,922 | ) | $(1,752,754 | ) | $(9,292,149 | ) | $(2,731,884 | ) | ||||||||
Net assets | ||||||||||||||||
At beginning of period | 175,522,640 | 104,375,196 | 282,234,081 | 122,888,387 | ||||||||||||
At end of period | $171,847,718 | $102,622,442 | $272,941,932 | $120,156,503 | ||||||||||||
Undistributed net investment income included in net assets at end of period | $129,709 | $610,154 | $234,605 | $130,443 |
See Notes to Financial Statements
59
Table of Contents
Statements of Changes in Net Assets – continued
Year ended 3/31/15 | Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | ||||||||||||
Change in net assets | ||||||||||||||||
From operations | ||||||||||||||||
Net investment income | $3,114,454 | $6,479,800 | $11,532,723 | $3,975,437 | ||||||||||||
Net realized gain (loss) on investments | (127,761 | ) | 583,370 | 302,393 | (198,091 | ) | ||||||||||
Net unrealized gain (loss) on investments | 3,122,975 | 8,219,620 | 11,297,297 | 5,382,978 | ||||||||||||
Change in net assets from operations | $6,109,668 | $15,282,790 | $23,132,413 | $9,160,324 | ||||||||||||
Distributions declared to shareholders | ||||||||||||||||
From net investment income | $(3,054,047 | ) | $(6,491,818 | ) | $(10,957,227 | ) | $(3,943,495 | ) | ||||||||
Change in net assets from fund share transactions | $(2,936,635 | ) | $1,450,895 | $(10,207,779 | ) | $(6,012,688 | ) | |||||||||
Total change in net assets | $118,986 | $10,241,867 | $1,967,407 | $(795,859 | ) | |||||||||||
Net assets | ||||||||||||||||
At beginning of period | 87,463,422 | 184,875,640 | 340,112,566 | 117,385,651 | ||||||||||||
At end of period | $87,582,408 | $195,117,507 | $342,079,973 | $116,589,792 | ||||||||||||
Undistributed net investment income included in net assets at end of period | $47,262 | $70,811 | $198,702 | $82,634 | ||||||||||||
Year ended 3/31/15 | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | ||||||||||||
Change in net assets | ||||||||||||||||
From operations | ||||||||||||||||
Net investment income | $5,101,651 | $3,315,896 | $9,828,597 | $4,067,914 | ||||||||||||
Net realized gain (loss) on investments | (478,656 | ) | (407,811 | ) | (1,221,577 | ) | (803,467 | ) | ||||||||
Net unrealized gain (loss) on investments | 7,845,970 | 4,316,728 | 10,628,975 | 5,138,843 | ||||||||||||
Change in net assets from operations | $12,468,965 | $7,224,813 | $19,235,995 | $8,403,290 | ||||||||||||
Distributions declared to shareholders | ||||||||||||||||
From net investment income | $(5,137,897 | ) | $(3,143,087 | ) | $(9,256,777 | ) | $(3,757,344 | ) | ||||||||
Change in net assets from fund share transactions | $(3,361,574 | ) | $(5,701,779 | ) | $(12,814,881 | ) | $(2,768,596 | ) | ||||||||
Total change in net assets | $3,969,494 | $(1,620,053 | ) | $(2,835,663 | ) | $1,877,350 | ||||||||||
Net assets | ||||||||||||||||
At beginning of period | 171,553,146 | 105,995,249 | 285,069,744 | 121,011,037 | ||||||||||||
At end of period | $175,522,640 | $104,375,196 | $282,234,081 | $122,888,387 | ||||||||||||
Accumulated undistributed (distributions in excess of) net investment income included in net assets at end of period | $16,185 | $480,150 | $(78,061 | ) | $(12,464 | ) |
See Notes to Financial Statements
60
Table of Contents
Financial Statements
MFS MISSISSIPPI MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund’s financial performance for the semiannual period and the past 5 fiscal 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.
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Class A | ||||||||||||||||||||||||
Net asset value, beginning of period | $10.01 | $9.67 | $10.27 | $10.11 | $9.37 | $9.82 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.18 | $0.35 | $0.38 | $0.39 | $0.39 | $0.41 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.14 | ) | 0.34 | (0.57 | ) | 0.16 | 0.74 | (0.44 | ) | |||||||||||||||
Total from investment operations | $0.04 | $0.69 | $(0.19 | ) | $0.55 | $1.13 | $(0.03 | ) | ||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.17 | ) | $(0.35 | ) | $(0.37 | ) | $(0.38 | ) | $(0.39 | ) | $(0.40 | ) | ||||||||||||
From net realized gain on investments | — | — | (0.04 | ) | (0.01 | ) | — | (0.02 | ) | |||||||||||||||
Total distributions declared to shareholders | $(0.17 | ) | $(0.35 | ) | $(0.41 | ) | $(0.39 | ) | $(0.39 | ) | $(0.42 | ) | ||||||||||||
Net asset value, end of period (x) | $9.88 | $10.01 | $9.67 | $10.27 | $10.11 | $9.37 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 0.45 | (n) | 7.18 | (1.82 | ) | 5.43 | 12.23 | (0.36 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||||||
Expenses before expense reductions (f) | 0.97 | (a) | 0.96 | 0.95 | 0.90 | 0.92 | 0.92 | |||||||||||||||||
Expenses after expense reductions (f) | 0.80 | (a) | 0.80 | 0.80 | 0.75 | 0.77 | 0.77 | |||||||||||||||||
Net investment income | 3.60 | (a) | 3.56 | 3.87 | 3.80 | 4.01 | 4.20 | |||||||||||||||||
Portfolio turnover | 7 | (n) | 16 | 19 | 12 | 14 | 15 | |||||||||||||||||
Net assets at end of period (000 omitted) | $83,249 | $85,927 | $85,405 | $114,430 | $114,748 | $104,478 |
See Notes to Financial Statements
61
Table of Contents
Financial Highlights – continued
MFS MISSISSIPPI MUNICIPAL BOND FUND – continued
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Class B | ||||||||||||||||||||||||
Net asset value, beginning of period | $10.02 | $9.68 | $10.28 | $10.12 | $9.38 | $9.83 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.14 | $0.29 | $0.31 | $0.32 | $0.33 | $0.34 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.13 | ) | 0.33 | (0.57 | ) | 0.15 | 0.73 | (0.44 | ) | |||||||||||||||
Total from investment operations | $0.01 | $0.62 | $(0.26 | ) | $0.47 | $1.06 | $(0.10 | ) | ||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.14 | ) | $(0.28 | ) | $(0.30 | ) | $(0.30 | ) | $(0.32 | ) | $(0.33 | ) | ||||||||||||
From net realized gain on investments | — | — | (0.04 | ) | (0.01 | ) | — | (0.02 | ) | |||||||||||||||
Total distributions declared to shareholders | $(0.14 | ) | $(0.28 | ) | $(0.34 | ) | $(0.31 | ) | $(0.32 | ) | $(0.35 | ) | ||||||||||||
Net asset value, end of period (x) | $9.89 | $10.02 | $9.68 | $10.28 | $10.12 | $9.38 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 0.11 | (n) | 6.47 | (2.50 | ) | 4.67 | 11.47 | (1.05 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||||||
Expenses before expense reductions (f) | 1.72 | (a) | 1.71 | 1.70 | 1.65 | 1.67 | 1.67 | |||||||||||||||||
Expenses after expense reductions (f) | 1.47 | (a) | 1.47 | 1.49 | 1.47 | 1.44 | 1.46 | |||||||||||||||||
Net investment income | 2.93 | (a) | 2.90 | 3.17 | 3.06 | 3.35 | 3.49 | |||||||||||||||||
Portfolio turnover | 7 | (n) | 16 | 19 | 12 | 14 | 15 | |||||||||||||||||
Net assets at end of period (000 omitted) | $1,636 | $1,655 | $2,059 | $2,604 | $2,078 | $2,647 |
(a) | Annualized. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
See Notes to Financial Statements
62
Table of Contents
Financial Highlights – continued
MFS NEW YORK MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund’s financial performance for the semiannual period and the past 5 fiscal 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.
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Class A | ||||||||||||||||||||||||
Net asset value, beginning of period | $11.25 | $10.74 | $11.50 | $11.22 | $10.34 | $10.93 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.21 | $0.39 | $0.43 | $0.43 | $0.43 | $0.47 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.15 | ) | 0.51 | (0.79 | ) | 0.26 | 0.87 | (0.60 | ) | |||||||||||||||
Total from investment operations | $0.06 | $0.90 | $(0.36 | ) | $0.69 | $1.30 | $(0.13 | ) | ||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.19 | ) | $(0.39 | ) | $(0.40 | ) | $(0.41 | ) | $(0.42 | ) | $(0.46 | ) | ||||||||||||
Net asset value, end of period (x) | $11.12 | $11.25 | $10.74 | $11.50 | $11.22 | $10.34 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 0.59 | (n) | 8.48 | (3.04 | ) | 6.19 | 12.80 | (1.31 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||||||
Expenses before expense reductions (f) | 0.88 | (a) | 0.88 | 0.88 | 0.86 | 0.88 | 0.87 | |||||||||||||||||
Expenses after expense reductions (f) | 0.87 | (a) | 0.87 | 0.88 | 0.86 | 0.88 | 0.87 | |||||||||||||||||
Net investment income | 3.87 | (a) | 3.51 | 3.94 | 3.73 | 3.99 | 4.30 | |||||||||||||||||
Portfolio turnover | 6 | (n) | 25 | 25 | 18 | 28 | 27 | |||||||||||||||||
Net assets at end of period (000 omitted) | $164,399 | $164,566 | $155,149 | $188,291 | $183,191 | $171,142 | ||||||||||||||||||
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
Class B | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value, beginning of period | $11.22 | $10.71 | $11.47 | $11.19 | $10.31 | $10.90 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.17 | $0.31 | $0.34 | $0.34 | $0.35 | $0.39 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.15 | ) | 0.51 | (0.78 | ) | 0.26 | 0.87 | (0.60 | ) | |||||||||||||||
Total from investment operations | $0.02 | $0.82 | $(0.44 | ) | $0.60 | $1.22 | $(0.21 | ) | ||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.15 | ) | $(0.31 | ) | $(0.32 | ) | $(0.32 | ) | $(0.34 | ) | $(0.38 | ) | ||||||||||||
Net asset value, end of period (x) | $11.09 | $11.22 | $10.71 | $11.47 | $11.19 | $10.31 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 0.21 | (n) | 7.69 | (3.77 | ) | 5.41 | 12.00 | (2.04 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||||||
Expenses before expense reductions (f) | 1.63 | (a) | 1.63 | 1.64 | 1.61 | 1.63 | 1.62 | |||||||||||||||||
Expenses after expense reductions (f) | 1.63 | (a) | 1.63 | 1.63 | 1.61 | 1.63 | 1.62 | |||||||||||||||||
Net investment income | 3.13 | (a) | 2.76 | 3.20 | 2.98 | 3.26 | 3.56 | |||||||||||||||||
Portfolio turnover | 6 | (n) | 25 | 25 | 18 | 28 | 27 | |||||||||||||||||
Net assets at end of period (000 omitted) | $5,338 | $5,459 | $5,501 | $7,019 | $6,298 | $8,178 |
See Notes to Financial Statements
63
Table of Contents
Financial Highlights – continued
MFS NEW YORK MUNICIPAL BOND FUND – continued
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
Class C | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value, beginning of period | $11.23 | $10.72 | $11.48 | $11.21 | $10.33 | $10.92 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.17 | $0.31 | $0.35 | $0.34 | $0.35 | $0.38 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.14 | ) | 0.51 | (0.79 | ) | 0.25 | 0.87 | (0.59 | ) | |||||||||||||||
Total from investment operations | $0.03 | $0.82 | $(0.44 | ) | $0.59 | $1.22 | $(0.21 | ) | ||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.15 | ) | $(0.31 | ) | $(0.32 | ) | $(0.32 | ) | $(0.34 | ) | $(0.38 | ) | ||||||||||||
Net asset value, end of period (x) | $11.11 | $11.23 | $10.72 | $11.48 | $11.21 | $10.33 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 0.30 | (n) | 7.68 | (3.77 | ) | 5.31 | 11.97 | (2.04 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||||||
Expenses before expense reductions (f) | 1.63 | (a) | 1.63 | 1.64 | 1.61 | 1.63 | 1.62 | |||||||||||||||||
Expenses after expense reductions (f) | 1.63 | (a) | 1.63 | 1.63 | 1.61 | 1.63 | 1.62 | |||||||||||||||||
Net investment income | 3.12 | (a) | 2.76 | 3.20 | 2.98 | 3.24 | 3.55 | |||||||||||||||||
Portfolio turnover | 6 | (n) | 25 | 25 | 18 | 28 | 27 | |||||||||||||||||
Net assets at end of period (000 omitted) | $24,974 | $25,092 | $24,225 | $36,508 | $32,962 | $28,780 |
(a) | Annualized. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
See Notes to Financial Statements
64
Table of Contents
Financial Highlights – continued
MFS NORTH CAROLINA MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund’s financial performance for the semiannual period and the past 5 fiscal 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.
Six months ended 9/30/15 (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Class A | ||||||||||||||||||||||||
Net asset value, beginning of period | $12.00 | $11.58 | $12.38 | $12.17 | $11.18 | $11.71 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.21 | $0.42 | $0.43 | $0.42 | $0.45 | $0.49 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.15 | ) | 0.40 | (0.76 | ) | 0.26 | 0.97 | (0.55 | ) | |||||||||||||||
Total from investment operations | $0.06 | $0.82 | $(0.33 | ) | $0.68 | $1.42 | $(0.06 | ) | ||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.20 | ) | $(0.40 | ) | $(0.41 | ) | $(0.40 | ) | $(0.43 | ) | $(0.47 | ) | ||||||||||||
From net realized gain on investments | — | — | (0.06 | ) | (0.07 | ) | — | (0.00 | )(w) | |||||||||||||||
Total distributions declared to shareholders | $(0.20 | ) | $(0.40 | ) | $(0.47 | ) | $(0.47 | ) | $(0.43 | ) | $(0.47 | ) | ||||||||||||
Net asset value, end of period (x) | $11.86 | $12.00 | $11.58 | $12.38 | $12.17 | $11.18 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 0.51 | (n) | 7.13 | (2.66 | ) | 5.59 | 12.92 | (0.55 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||||||
Expenses before expense reductions (f) | 0.87 | (a) | 0.86 | 0.87 | 0.84 | 0.85 | 0.85 | |||||||||||||||||
Expenses after expense reductions (f) | 0.86 | (a) | 0.85 | 0.86 | 0.84 | 0.85 | 0.85 | |||||||||||||||||
Net investment income | 3.53 | (a) | 3.50 | 3.64 | 3.35 | 3.82 | 4.22 | |||||||||||||||||
Portfolio turnover | 5 | (n) | 16 | 17 | 18 | 24 | 20 | |||||||||||||||||
Net assets at end of period (000 omitted) | $275,212 | $281,268 | $278,717 | $384,213 | $357,793 | $320,834 | ||||||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||||||
Ratios of expenses to average net assets after expense reductions and excluding interest expense and fees (f)(l) | N/A | N/A | N/A | 0.84 | 0.83 | 0.84 |
See Notes to Financial Statements
65
Table of Contents
Financial Highlights – continued
MFS NORTH CAROLINA MUNICIPAL BOND FUND – continued
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Class B | ||||||||||||||||||||||||
Net asset value, beginning of period | $11.98 | $11.56 | $12.37 | $12.16 | $11.17 | $11.69 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.16 | $0.33 | $0.34 | $0.33 | $0.36 | $0.40 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.13 | ) | 0.40 | (0.77 | ) | 0.26 | 0.98 | (0.53 | ) | |||||||||||||||
Total from investment operations | $0.03 | $0.73 | $(0.43 | ) | $0.59 | $1.34 | $(0.13 | ) | ||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.16 | ) | $(0.31 | ) | $(0.32 | ) | $(0.31 | ) | $(0.35 | ) | $(0.39 | ) | ||||||||||||
From net realized gain on investments | — | — | (0.06 | ) | (0.07 | ) | — | (0.00 | )(w) | |||||||||||||||
Total distributions declared to shareholders | $(0.16 | ) | $(0.31 | ) | $(0.38 | ) | $(0.38 | ) | $(0.35 | ) | $(0.39 | ) | ||||||||||||
Net asset value, end of period (x) | $11.85 | $11.98 | $11.56 | $12.37 | $12.16 | $11.17 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 0.22 | (n) | 6.34 | (3.47 | ) | 4.81 | 12.09 | (1.20 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||||||
Expenses before expense reductions (f) | 1.62 | (a) | 1.61 | 1.62 | 1.59 | 1.60 | 1.60 | |||||||||||||||||
Expenses after expense reductions (f) | 1.61 | (a) | 1.61 | 1.62 | 1.59 | 1.60 | 1.60 | |||||||||||||||||
Net investment income | 2.79 | (a) | 2.76 | 2.89 | 2.61 | 3.08 | 3.46 | |||||||||||||||||
Portfolio turnover | 5 | (n) | 16 | 17 | 18 | 24 | 20 | |||||||||||||||||
Net assets at end of period (000 omitted) | $4,493 | $4,738 | $5,082 | $7,618 | $7,793 | $8,296 | ||||||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||||||
Ratios of expenses to average net assets after expense reductions and excluding interest expense and fees (f)(l) | N/A | N/A | N/A | 1.59 | 1.58 | 1.59 |
See Notes to Financial Statements
66
Table of Contents
Financial Highlights – continued
MFS NORTH CAROLINA MUNICIPAL BOND FUND – continued
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Class C | ||||||||||||||||||||||||
Net asset value, beginning of period | $11.99 | $11.57 | $12.37 | $12.17 | $11.17 | $11.70 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.16 | $0.33 | $0.34 | $0.32 | $0.36 | $0.40 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.14 | ) | 0.40 | (0.76 | ) | 0.26 | 0.98 | (0.54 | ) | |||||||||||||||
Total from investment operations | $0.02 | $0.73 | $(0.42 | ) | $0.58 | $1.34 | $(0.14 | ) | ||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.16 | ) | $(0.31 | ) | $(0.32 | ) | $(0.31 | ) | $(0.34 | ) | $(0.39 | ) | ||||||||||||
From net realized gain on investments | — | — | (0.06 | ) | (0.07 | ) | — | (0.00 | )(w) | |||||||||||||||
Total distributions declared to shareholders | $(0.16 | ) | $(0.31 | ) | $(0.38 | ) | $(0.38 | ) | $(0.34 | ) | $(0.39 | ) | ||||||||||||
Net asset value, end of period (x) | $11.85 | $11.99 | $11.57 | $12.37 | $12.17 | $11.17 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 0.14 | (n) | 6.33 | (3.39 | ) | 4.72 | 12.18 | (1.29 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||||||
Expenses before expense reductions (f) | 1.62 | (a) | 1.61 | 1.62 | 1.59 | 1.60 | 1.60 | |||||||||||||||||
Expenses after expense reductions (f) | 1.61 | (a) | 1.60 | 1.62 | 1.59 | 1.60 | 1.60 | |||||||||||||||||
Net investment income | 2.78 | (a) | 2.75 | 2.89 | 2.60 | 3.06 | 3.46 | |||||||||||||||||
Portfolio turnover | 5 | (n) | 16 | 17 | 18 | 24 | 20 | |||||||||||||||||
Net assets at end of period (000 omitted) | $55,541 | $56,074 | $56,314 | $87,114 | $75,895 | $64,530 | ||||||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||||||
Ratios of expenses to average net assets after expense reductions and excluding interest expense and | N/A | N/A | N/A | 1.59 | 1.58 | 1.59 |
(a) | Annualized. |
(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. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(w) | Per share amount was less than $0.01. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
See Notes to Financial Statements
67
Table of Contents
Financial Highlights – continued
MFS PENNSYLVANIA MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund’s financial performance for the semiannual period and the past 5 fiscal 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.
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Class A | ||||||||||||||||||||||||
Net asset value, beginning of period | $10.44 | $9.99 | $10.63 | $10.36 | $9.53 | $10.04 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.19 | $0.35 | $0.39 | $0.40 | $0.42 | $0.43 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.12 | ) | 0.45 | (0.66 | ) | 0.25 | 0.82 | (0.52 | ) | |||||||||||||||
Total from investment operations | $0.07 | $0.80 | $(0.27 | ) | $0.65 | $1.24 | $(0.09 | ) | ||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.18 | ) | $(0.35 | ) | $(0.37 | ) | $(0.38 | ) | $(0.41 | ) | $(0.42 | ) | ||||||||||||
Net asset value, end of period (x) | $10.33 | $10.44 | $9.99 | $10.63 | $10.36 | $9.53 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 0.70 | (n) | 8.10 | (2.52 | ) | 6.35 | 13.27 | (0.97 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||||||
Expenses before expense reductions (f) | 0.95 | (a) | 0.95 | 0.93 | 0.89 | 0.93 | 0.93 | |||||||||||||||||
Expenses after expense reductions (f) | 0.79 | (a) | 0.79 | 0.78 | 0.74 | 0.78 | 0.78 | |||||||||||||||||
Net investment income | 3.62 | (a) | 3.42 | 3.90 | 3.77 | 4.20 | 4.34 | |||||||||||||||||
Portfolio turnover | 11 | (n) | 23 | 21 | 15 | 21 | 21 | |||||||||||||||||
Net assets at end of period (000 omitted) | $109,354 | $110,378 | $110,449 | $152,804 | $133,328 | $118,709 | ||||||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||||||
Ratios of expenses to average net assets after expense reductions and excluding interest expense and fees (f)(l) | N/A | N/A | N/A | 0.74 | 0.78 | 0.78 |
See Notes to Financial Statements
68
Table of Contents
Financial Highlights – continued
MFS PENNSYLVANIA MUNICIPAL BOND FUND – continued
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Class B | ||||||||||||||||||||||||
Net asset value, beginning of period | $10.47 | $10.02 | $10.65 | $10.39 | $9.55 | $10.06 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.15 | $0.27 | $0.31 | $0.32 | $0.35 | $0.36 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.13 | ) | 0.45 | (0.65 | ) | 0.24 | 0.83 | (0.53 | ) | |||||||||||||||
Total from investment operations | $0.02 | $0.72 | $(0.34 | ) | $0.56 | $1.18 | $(0.17 | ) | ||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.14 | ) | $(0.27 | ) | $(0.29 | ) | $(0.30 | ) | $(0.34 | ) | $(0.34 | ) | ||||||||||||
Net asset value, end of period (x) | $10.35 | $10.47 | $10.02 | $10.65 | $10.39 | $9.55 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 0.23 | (n) | 7.26 | (3.16 | ) | 5.42 | 12.49 | (1.74 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||||||
Expenses before expense reductions (f) | 1.70 | (a) | 1.70 | 1.68 | 1.64 | 1.68 | 1.68 | |||||||||||||||||
Expenses after expense reductions (f) | 1.55 | (a) | 1.55 | 1.55 | 1.51 | 1.55 | 1.56 | |||||||||||||||||
Net investment income | 2.85 | (a) | 2.65 | 3.12 | 2.99 | 3.44 | 3.55 | |||||||||||||||||
Portfolio turnover | 11 | (n) | 23 | 21 | 15 | 21 | 21 | |||||||||||||||||
Net assets at end of period (000 omitted) | $5,758 | $6,212 | $6,936 | $10,793 | $10,524 | $12,750 | ||||||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||||||
Ratios of expenses to average net assets after expense reductions and excluding interest expense and fees (f)(l) | N/A | N/A | N/A | 1.51 | 1.54 | 1.56 |
(a) | Annualized. |
(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. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
See Notes to Financial Statements
69
Table of Contents
Financial Highlights – continued
MFS SOUTH CAROLINA MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund’s financial performance for the semiannual period and the past 5 fiscal 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.
Six months | Years ended 3/31 | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Class A | ||||||||||||||||||||||||
Net asset value, beginning of period | $12.29 | $11.78 | $12.61 | $12.38 | $11.48 | $12.04 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.19 | $0.36 | $0.43 | $0.43 | $0.47 | $0.50 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.13 | ) | 0.51 | (0.85 | ) | 0.22 | 0.89 | (0.56 | ) | |||||||||||||||
Total from investment operations | $0.06 | $0.87 | $(0.42 | ) | $0.65 | $1.36 | $(0.06 | ) | ||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.18 | ) | $(0.36 | ) | $(0.41 | ) | $(0.42 | ) | $(0.46 | ) | $(0.50 | ) | ||||||||||||
Net asset value, end of period (x) | $12.17 | $12.29 | $11.78 | $12.61 | $12.38 | $11.48 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 0.49 | (n) | 7.48 | (3.31 | ) | 5.24 | 12.02 | (0.59 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||||||
Expenses before expense reductions (f) | 0.90 | (a) | 0.90 | 0.89 | 0.86 | 0.88 | 0.88 | |||||||||||||||||
Expenses after expense reductions (f) | 0.87 | (a) | 0.89 | 0.89 | 0.86 | 0.88 | 0.88 | |||||||||||||||||
Net investment income | 3.08 | (a) | 2.97 | 3.59 | 3.42 | 3.94 | 4.20 | |||||||||||||||||
Portfolio turnover | 3 | (n) | 22 | 24 | 15 | 19 | 26 | |||||||||||||||||
Net assets at end of period (000 omitted) | $167,490 | $170,887 | $166,428 | $220,370 | $194,840 | $166,413 |
See Notes to Financial Statements
70
Table of Contents
Financial Highlights – continued
MFS SOUTH CAROLINA MUNICIPAL BOND FUND – continued
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Class B | ||||||||||||||||||||||||
Net asset value, beginning of period | $12.28 | $11.77 | $12.61 | $12.37 | $11.47 | $12.04 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.14 | $0.27 | $0.34 | $0.34 | $0.38 | $0.41 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.13 | ) | 0.51 | (0.86 | ) | 0.22 | 0.89 | (0.57 | ) | |||||||||||||||
Total from investment operations | $0.01 | $0.78 | $(0.52 | ) | $0.56 | $1.27 | $(0.16 | ) | ||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.13 | ) | $(0.27 | ) | $(0.32 | ) | $(0.32 | ) | $(0.37 | ) | $(0.41 | ) | ||||||||||||
Net asset value, end of period (x) | $12.16 | $12.28 | $11.77 | $12.61 | $12.37 | $11.47 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 0.12 | (n) | 6.69 | (4.11 | ) | 4.55 | 11.20 | (1.41 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||||||
Expenses before expense reductions (f) | 1.65 | (a) | 1.65 | 1.64 | 1.61 | 1.63 | 1.63 | |||||||||||||||||
Expenses after expense reductions (f) | 1.62 | (a) | 1.64 | 1.64 | 1.61 | 1.63 | 1.63 | |||||||||||||||||
Net investment income | 2.32 | (a) | 2.22 | 2.84 | 2.67 | 3.20 | 3.45 | |||||||||||||||||
Portfolio turnover | 3 | (n) | 22 | 24 | 15 | 19 | 26 | |||||||||||||||||
Net assets at end of period (000 omitted) | $4,358 | $4,635 | $5,125 | $7,421 | $6,698 | $6,928 |
(a) | Annualized. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
See Notes to Financial Statements
71
Table of Contents
Financial Highlights – continued
MFS TENNESSEE MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund’s financial performance for the semiannual period and the past 5 fiscal 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.
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Class A | ||||||||||||||||||||||||
Net asset value, beginning of period | $10.67 | $10.27 | $10.96 | $10.76 | $9.97 | $10.40 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.17 | $0.33 | $0.35 | $0.39 | $0.43 | $0.43 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.14 | ) | 0.38 | (0.70 | ) | 0.18 | 0.78 | (0.44 | ) | |||||||||||||||
Total from investment operations | $0.03 | $0.71 | $(0.35 | ) | $0.57 | $1.21 | $(0.01 | ) | ||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.16 | ) | $(0.31 | ) | $(0.34 | ) | $(0.37 | ) | $(0.42 | ) | $(0.42 | ) | ||||||||||||
Net asset value, end of period (x) | $10.54 | $10.67 | $10.27 | $10.96 | $10.76 | �� | $9.97 | |||||||||||||||||
Total return (%) (r)(s)(t)(x) | 0.25 | (n) | 7.01 | (3.15 | ) | 5.33 | 12.31 | (0.14 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||||||
Expenses before expense reductions (f) | 0.95 | (a) | 0.94 | 0.94 | 0.89 | 0.91 | 0.91 | |||||||||||||||||
Expenses after expense reductions (f) | 0.92 | (a) | 0.94 | 0.94 | 0.89 | 0.91 | 0.91 | |||||||||||||||||
Net investment income | 3.21 | (a) | 3.12 | 3.42 | 3.51 | 4.08 | 4.13 | |||||||||||||||||
Portfolio turnover | 7 | (n) | 18 | 26 | 20 | 14 | 18 | |||||||||||||||||
Net assets at end of period (000 omitted) | $100,778 | $102,473 | $104,102 | $133,911 | $117,095 | $107,334 |
See Notes to Financial Statements
72
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Financial Highlights – continued
MFS TENNESSEE MUNICIPAL BOND FUND – continued
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Class B | ||||||||||||||||||||||||
Net asset value, beginning of period | $10.66 | $10.26 | $10.95 | $10.75 | $9.97 | $10.39 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.13 | $0.25 | $0.28 | $0.30 | $0.35 | $0.35 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.14 | ) | 0.38 | (0.71 | ) | 0.19 | 0.77 | (0.43 | ) | |||||||||||||||
Total from investment operations | $(0.01 | ) | $0.63 | $(0.43 | ) | $0.49 | $1.12 | $(0.08 | ) | |||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.12 | ) | $(0.23 | ) | $(0.26 | ) | $(0.29 | ) | $(0.34 | ) | $(0.34 | ) | ||||||||||||
Net asset value, end of period (x) | $10.53 | $10.66 | $10.26 | $10.95 | $10.75 | $9.97 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | (0.12 | )(n) | 6.21 | (3.88 | ) | 4.55 | 11.37 | (0.78 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||||||
Expenses before expense reductions (f) | 1.70 | (a) | 1.69 | 1.69 | 1.64 | 1.66 | 1.66 | |||||||||||||||||
Expenses after expense reductions (f) | 1.67 | (a) | 1.69 | 1.69 | 1.64 | 1.66 | 1.65 | |||||||||||||||||
Net investment income | 2.46 | (a) | 2.37 | 2.68 | 2.76 | 3.34 | 3.38 | |||||||||||||||||
Portfolio turnover | 7 | (n) | 18 | 26 | 20 | 14 | 18 | |||||||||||||||||
Net assets at end of period (000 omitted) | $1,844 | $1,902 | $1,893 | $2,727 | $2,535 | $3,116 |
(a) | Annualized. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
See Notes to Financial Statements
73
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Financial Highlights – continued
MFS VIRGINIA MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund’s financial performance for the semiannual period and the past 5 fiscal 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.
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Class A | ||||||||||||||||||||||||
Net asset value, beginning of period | $11.44 | $11.05 | $11.69 | $11.52 | $10.67 | $11.24 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.19 | $0.39 | $0.40 | $0.42 | $0.45 | $0.47 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.11 | ) | 0.37 | (0.64 | ) | 0.15 | 0.83 | (0.57 | ) | |||||||||||||||
Total from investment operations | $0.08 | $0.76 | $(0.24 | ) | $0.57 | $1.28 | $(0.10 | ) | ||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.18 | ) | $(0.37 | ) | $(0.40 | ) | $(0.40 | ) | $(0.43 | ) | $(0.46 | ) | ||||||||||||
From net realized gain on investments | — | — | — | — | — | (0.01 | ) | |||||||||||||||||
Total distributions declared to shareholders | $(0.18 | ) | $(0.37 | ) | $(0.40 | ) | $(0.40 | ) | $(0.43 | ) | $(0.47 | ) | ||||||||||||
Net asset value, end of period (x) | $11.34 | $11.44 | $11.05 | $11.69 | $11.52 | $10.67 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 0.70 | (n) | 6.97 | (2.02 | ) | 4.99 | 12.21 | (1.03 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||||||
Expenses before expense reductions (f) | 0.89 | (a) | 0.88 | 0.89 | 0.86 | 0.86 | 0.86 | |||||||||||||||||
Expenses after expense reductions (f) | 0.86 | (a) | 0.88 | 0.88 | 0.86 | 0.86 | 0.86 | |||||||||||||||||
Net investment income | 3.39 | (a) | 3.48 | 3.65 | 3.57 | 3.99 | 4.23 | |||||||||||||||||
Portfolio turnover | 4 | (n) | 20 | 24 | 11 | 24 | 21 | |||||||||||||||||
Net assets at end of period (000 omitted) | $247,244 | $255,205 | $257,695 | $335,395 | $317,117 | $292,027 | ||||||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||||||
Ratios of expenses to average net assets after expense reductions and excluding interest expense and fees (f)(l) | 0.85 | (a) | 0.86 | 0.87 | 0.85 | 0.85 | 0.85 |
See Notes to Financial Statements
74
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Financial Highlights – continued
MFS VIRGINIA MUNICIPAL BOND FUND – continued
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Class B | ||||||||||||||||||||||||
Net asset value, beginning of period | $11.44 | $11.05 | $11.68 | $11.51 | $10.66 | $11.24 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.15 | $0.31 | $0.32 | $0.33 | $0.36 | $0.39 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.12 | ) | 0.37 | (0.64 | ) | 0.15 | 0.84 | (0.58 | ) | |||||||||||||||
Total from investment operations | $0.03 | $0.68 | $(0.32 | ) | $0.48 | $1.20 | $(0.19 | ) | ||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.14 | ) | $(0.29 | ) | $(0.31 | ) | $(0.31 | ) | $(0.35 | ) | $(0.38 | ) | ||||||||||||
From net realized gain on investments | — | — | — | — | — | (0.01 | ) | |||||||||||||||||
Total distributions declared to shareholders | $(0.14 | ) | $(0.29 | ) | $(0.31 | ) | $(0.31 | ) | $(0.35 | ) | $(0.39 | ) | ||||||||||||
Net asset value, end of period (x) | $11.33 | $11.44 | $11.05 | $11.68 | $11.51 | $10.66 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 0.24 | (n) | 6.18 | (2.67 | ) | 4.21 | 11.38 | (1.85 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||||||
Expenses before expense reductions (f) | 1.64 | (a) | 1.63 | 1.64 | 1.61 | 1.61 | 1.61 | |||||||||||||||||
Expenses after expense reductions (f) | 1.62 | (a) | 1.63 | 1.64 | 1.61 | 1.61 | 1.61 | |||||||||||||||||
Net investment income | 2.64 | (a) | 2.73 | 2.90 | 2.83 | 3.25 | 3.47 | |||||||||||||||||
Portfolio turnover | 4 | (n) | 20 | 24 | 11 | 24 | 21 | |||||||||||||||||
Net assets at end of period (000 omitted) | $1,602 | $1,921 | $2,212 | $3,425 | $3,781 | $4,159 | ||||||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||||||
Ratios of expenses to average net assets after expense reductions and excluding interest expense and fees (f)(l) | 1.61 | (a) | 1.62 | 1.63 | 1.60 | 1.60 | 1.60 |
See Notes to Financial Statements
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Financial Highlights – continued
MFS VIRGINIA MUNICIPAL BOND FUND – continued
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Class C | ||||||||||||||||||||||||
Net asset value, beginning of period | $11.44 | $11.05 | $11.68 | $11.51 | $10.67 | $11.24 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.15 | $0.31 | $0.32 | $0.33 | $0.36 | $0.39 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.11 | ) | 0.37 | (0.64 | ) | 0.15 | 0.83 | (0.58 | ) | |||||||||||||||
Total from investment operations | $0.04 | $0.68 | $(0.32 | ) | $0.48 | $1.19 | $(0.19 | ) | ||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.14 | ) | $(0.29 | ) | $(0.31 | ) | $(0.31 | ) | $(0.35 | ) | $(0.37 | ) | ||||||||||||
From net realized gain on investments | — | — | — | — | — | (0.01 | ) | |||||||||||||||||
Total distributions declared to shareholders | $(0.14 | ) | $(0.29 | ) | $(0.31 | ) | $(0.31 | ) | $(0.35 | ) | $(0.38 | ) | ||||||||||||
Net asset value, end of period (x) | $11.34 | $11.44 | $11.05 | $11.68 | $11.51 | $10.67 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 0.33 | (n) | 6.17 | (2.67 | ) | 4.21 | 11.27 | (1.77 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||||||
Expenses before expense reductions (f) | 1.64 | (a) | 1.63 | 1.64 | 1.61 | 1.61 | 1.61 | |||||||||||||||||
Expenses after expense reductions (f) | 1.61 | (a) | 1.63 | 1.64 | 1.61 | 1.61 | 1.61 | |||||||||||||||||
Net investment income | 2.64 | (a) | 2.73 | 2.90 | 2.81 | 3.24 | 3.47 | |||||||||||||||||
Portfolio turnover | 4 | (n) | 20 | 24 | 11 | 24 | 21 | |||||||||||||||||
Net assets at end of period (000 omitted) | $24,096 | $25,108 | $25,163 | $35,878 | $32,519 | $30,726 | ||||||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||||||
Ratios of expenses to average net assets after expense reductions and excluding interest expense and | 1.60 | (a) | 1.62 | 1.63 | 1.60 | 1.60 | 1.60 |
(a) | Annualized. |
(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. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
See Notes to Financial Statements
76
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Financial Highlights – continued
MFS WEST VIRGINIA MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund’s financial performance for the semiannual period and the past 5 fiscal 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.
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Class A | ||||||||||||||||||||||||
Net asset value, beginning of period | $11.36 | $10.93 | $11.60 | $11.49 | $10.61 | $10.98 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.19 | $0.38 | $0.39 | $0.40 | $0.43 | $0.44 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.16 | ) | 0.40 | (0.69 | ) | 0.09 | 0.86 | (0.39 | ) | |||||||||||||||
Total from investment operations | $0.03 | $0.78 | $(0.30 | ) | $0.49 | $1.29 | $0.05 | |||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.17 | ) | $(0.35 | ) | $(0.37 | ) | $(0.38 | ) | $(0.41 | ) | $(0.42 | ) | ||||||||||||
Net asset value, end of period (x) | $11.22 | $11.36 | $10.93 | $11.60 | $11.49 | $10.61 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 0.31 | (n) | 7.18 | (2.54 | ) | 4.32 | 12.32 | 0.41 | ||||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||||||
Expenses before expense reductions (f) | 0.93 | (a) | 0.93 | 0.93 | 0.88 | 0.88 | 0.89 | |||||||||||||||||
Expenses after expense reductions (f) | 0.89 | (a) | 0.90 | 0.90 | 0.88 | 0.88 | 0.89 | |||||||||||||||||
Net investment income | 3.34 | (a) | 3.34 | 3.58 | 3.44 | 3.81 | 3.98 | |||||||||||||||||
Portfolio turnover | 5 | (n) | 22 | 17 | 14 | 14 | 17 | |||||||||||||||||
Net assets at end of period (000 omitted) | $119,006 | $121,680 | $119,721 | $153,032 | $143,789 | $128,450 | ||||||||||||||||||
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Class B | ||||||||||||||||||||||||
Net asset value, beginning of period | $11.35 | $10.93 | $11.59 | $11.49 | $10.61 | $10.97 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.14 | $0.29 | $0.31 | $0.31 | $0.34 | $0.36 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.15 | ) | 0.39 | (0.68 | ) | 0.09 | 0.86 | (0.38 | ) | |||||||||||||||
Total from investment operations | $(0.01 | ) | $0.68 | $(0.37 | ) | $0.40 | $1.20 | $(0.02 | ) | |||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.13 | ) | $(0.26 | ) | $(0.29 | ) | $(0.30 | ) | $(0.32 | ) | $(0.34 | ) | ||||||||||||
Net asset value, end of period (x) | $11.21 | $11.35 | $10.93 | $11.59 | $11.49 | $10.61 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | (0.07 | )(n) | 6.29 | (3.18 | ) | 3.46 | 11.48 | (0.24 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||||||
Expenses before expense reductions (f) | 1.69 | (a) | 1.68 | 1.68 | 1.63 | 1.63 | 1.64 | |||||||||||||||||
Expenses after expense reductions (f) | 1.64 | (a) | 1.65 | 1.65 | 1.63 | 1.63 | 1.64 | |||||||||||||||||
Net investment income | 2.59 | (a) | 2.59 | 2.83 | 2.69 | 3.08 | 3.23 | |||||||||||||||||
Portfolio turnover | 5 | (n) | 22 | 17 | 14 | 14 | 17 | |||||||||||||||||
Net assets at end of period (000 omitted) | $1,151 | $1,209 | $1,291 | $1,890 | $2,220 | $2,925 |
(a) | Annualized. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
See Notes to Financial Statements
77
Table of Contents
(unaudited)
(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 Standards 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.
Balance Sheet Offsetting – Each fund’s accounting policy with respect to balance sheet offsetting is that, absent an event of default by the counterparty or a termination of the agreement, the International Swaps and Derivatives Association (ISDA) Master Agreement does not result in an offset of reported amounts of financial assets and financial liabilities in the Statements of Assets and Liabilities across transactions between each fund and the applicable counterparty. Each fund’s right to setoff may be restricted or prohibited by the bankruptcy or insolvency laws of the particular jurisdiction to which a specific master netting agreement counterparty is subject. Balance sheet offsetting disclosures, 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, 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 may be valued at amortized cost, which approximates market value. Futures contracts are generally valued at last posted settlement price as provided by a third-party pricing service on the market on which they are primarily traded. Futures contracts for which there were no trades that day for a particular position are generally valued at the closing bid quotation as provided by a third-party pricing service on the market on which such futures contracts are primarily traded. 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
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Notes to Financial Statements (unaudited) – continued
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 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. Other financial instruments are derivative instruments not reflected in total investments, such as futures contracts. The following is a summary of the levels used as of September 30, 2015 in valuing each fund’s assets or liabilities:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Mississippi Fund | ||||||||||||||||
Investments at Value | ||||||||||||||||
Municipal Bonds | $— | $83,379,257 | $— | $83,379,257 | ||||||||||||
Mutual Funds | 1,542,269 | — | — | 1,542,269 | ||||||||||||
Total Investments | $1,542,269 | $83,379,257 | $— | $84,921,526 | ||||||||||||
New York Fund | ||||||||||||||||
Investments at Value | ||||||||||||||||
Municipal Bonds | $— | $186,609,620 | $— | $186,609,620 | ||||||||||||
Mutual Funds | 4,374,684 | — | — | 4,374,684 | ||||||||||||
Total Investments | $4,374,684 | $186,609,620 | $— | $190,984,304 | ||||||||||||
North Carolina Fund | ||||||||||||||||
Investments at Value | ||||||||||||||||
Municipal Bonds | $— | $327,376,527 | $— | $327,376,527 | ||||||||||||
Mutual Funds | 3,268,186 | — | — | 3,268,186 | ||||||||||||
Total Investments | $3,268,186 | $327,376,527 | $— | $330,644,713 | ||||||||||||
Pennsylvania Fund | ||||||||||||||||
Investments at Value | ||||||||||||||||
Municipal Bonds | $— | $112,277,914 | $— | $112,277,914 | ||||||||||||
Mutual Funds | 1,843,816 | — | — | 1,843,816 | ||||||||||||
Total Investments | $1,843,816 | $112,277,914 | $— | $114,121,730 | ||||||||||||
Other Financial Instruments | ||||||||||||||||
Futures Contracts | $(31,161 | ) | $— | $— | $(31,161 | ) | ||||||||||
South Carolina Fund | ||||||||||||||||
Investments at Value | ||||||||||||||||
Municipal Bonds | $— | $168,536,400 | $— | $168,536,400 | ||||||||||||
Mutual Funds | 1,283,805 | — | — | 1,283,805 | ||||||||||||
Total Investments | $1,283,805 | $168,536,400 | $— | $169,820,205 | ||||||||||||
Other Financial Instruments | ||||||||||||||||
Futures Contracts | $(31,161 | ) | $— | $— | $(31,161 | ) |
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Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Tennessee Fund | ||||||||||||||||
Investments at Value | ||||||||||||||||
Municipal Bonds | $— | $99,787,874 | $— | $99,787,874 | ||||||||||||
Mutual Funds | 1,596,771 | — | — | 1,596,771 | ||||||||||||
Total Investments | $1,596,771 | $99,787,874 | $— | $101,384,645 | ||||||||||||
Virginia Fund | ||||||||||||||||
Investments at Value | ||||||||||||||||
Municipal Bonds | $— | $271,514,297 | $— | $271,514,297 | ||||||||||||
Mutual Funds | 3,270,334 | — | — | 3,270,334 | ||||||||||||
Total Investments | $3,270,334 | $271,514,297 | $— | $274,784,631 | ||||||||||||
Other Financial Instruments | ||||||||||||||||
Futures Contracts | $(50,079 | ) | $— | $— | $(50,079 | ) | ||||||||||
West Virginia Fund | ||||||||||||||||
Investments at Value | ||||||||||||||||
Municipal Bonds | $— | $117,943,155 | $— | $117,943,155 | ||||||||||||
Mutual Funds | 961,556 | — | — | 961,556 | ||||||||||||
Total Investments | $961,556 | $117,943,155 | $— | $118,904,711 |
For further information regarding security characteristics, see the Portfolio of Investments.
Derivatives – The Pennsylvania Fund, the South Carolina Fund, and the Virginia Fund use derivatives for different purposes, primarily to increase or decrease exposure to a particular market or segment of the market, or security, to increase or decrease interest rate exposure, or as alternatives to direct investments. Derivatives are used for hedging or non-hedging purposes. While hedging can reduce or eliminate losses, it can also reduce or eliminate gains. When the funds use derivatives as an investment to increase market exposure, or for hedging purposes, gains and losses from derivative instruments may be substantially greater than the derivative’s original cost.
The derivative instruments used by the Pennsylvania Fund, the South Carolina Fund, and the Virginia Fund were futures contracts. These funds’ period end derivatives, as presented in the Portfolio of Investments and the associated Derivative Contract tables, generally are indicative of the volume of their derivative activity during the period.
The following table presents, by major type of derivative contract, the fair value, on a gross basis, of the asset and liability components of derivatives held by the Pennsylvania Fund, the South Carolina Fund, and the Virginia Fund at September 30, 2015 as reported in the Statements of Assets and Liabilities:
Fair Value (a) | ||||||||||
Fund | Risk | Derivative | Liability Derivatives | |||||||
Pennsylvania Fund | Interest Rate | Interest Rate Futures | $(31,161 | ) | ||||||
South Carolina Fund | Interest Rate | Interest Rate Futures | (31,161 | ) | ||||||
Virginia Fund | Interest Rate | Interest Rate Futures | (50,079 | ) |
(a) | The value of futures contracts outstanding includes cumulative appreciation (depreciation) as reported in each fund’s Portfolios of Investments. Only the current day variation margin for futures contracts is separately reported within each fund’s Statement of Assets and Liabilities. |
The following table presents, by major type of derivative contract, the change in unrealized appreciation (depreciation) on derivatives held by the Pennsylvania Fund, the South Carolina Fund, and the Virginia Fund for the six months ended September 30, 2015 as reported in the Statements of Operations:
Fund | Risk | Futures Contracts | ||
Pennsylvania Fund | Interest Rate | $(31,161) | ||
South Carolina Fund | Interest Rate | (31,161) | ||
Virginia Fund | Interest Rate | (50,079) |
There is no realized gain (loss) from derivative transactions during the period for these funds.
Derivative counterparty credit risk is managed through formal evaluation of the creditworthiness of all potential counterparties. On certain, but not all, uncleared derivatives, the Pennsylvania Fund, the South Carolina Fund, and the Virginia Fund attempt to reduce their exposure to counterparty credit risk whenever possible by entering into an ISDA Master Agreement on a bilateral basis. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the other party. Upon an event of default or a termination of the ISDA Master Agreement, the non-defaulting party has the right to close out all transactions traded under such agreement and to net
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amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of each fund’s credit risk to such counterparty equal to any amounts payable by each fund under the applicable transactions, if any.
Collateral and margin requirements differ by type of derivative. Margin requirements are set by the clearing broker and the clearing house for cleared derivatives (e.g., futures contracts, cleared swaps, and exchange-traded options) while collateral terms are contract specific for uncleared derivatives (e.g., forward foreign currency exchange contracts, uncleared swap agreements, and uncleared options). For derivatives traded under an ISDA Master Agreement, which contains a collateral support annex, the collateral requirements are netted across all transactions traded under such agreement and one amount is posted from one party to the other to collateralize such obligations. Cash that has been segregated to cover each fund’s collateral or margin obligations under derivative contracts, if any, will be reported separately in the Statements of Assets and Liabilities as “Restricted cash” or “Deposits with brokers.” Securities pledged as collateral or margin for the same purpose, if any, are noted in the Portfolio of Investments.
Futures Contracts – The Pennsylvania Fund, the South Carolina Fund, and the Virginia Fund entered into futures contracts which may be used to hedge against or obtain broad market exposure, interest rate exposure, or to manage duration. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date.
Upon entering into a futures contract, these funds are required to deposit with the broker, either in cash or securities, an initial margin in an amount equal to a certain percentage of the notional amount of the contract. Subsequent payments (variation margin) are made or received by these funds each day, depending on the daily fluctuations in the value of the contract, and are recorded for financial statement purposes as unrealized gain or loss by these funds until the contract is closed or expires at which point the gain or loss on futures contracts is realized.
Each fund bears the risk of interest rates or securities prices moving unexpectedly, in which case, each fund may not achieve the anticipated benefits of the futures contracts and may realize a loss. While futures contracts may present less counterparty risk to these funds since the contracts are exchange traded and the exchange’s clearinghouse guarantees payments to the broker, there is still counterparty credit risk due to the insolvency of the broker. These funds’ maximum risk of loss due to counterparty credit risk is equal to the margin posted by the each fund to the broker plus any gains or minus any losses on the outstanding futures contracts.
Inverse Floaters – The Virginia 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 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 September 30, 2015, the Virginia Fund’s payable to the holders of the floating rate certificates from trust assets was $5,004,812 and the interest rate on the floating rate certificates issued by the trust was 0.03%. For the six months ended September 30, 2015, the average payable to the holders of the floating rate certificates from trust assets was $5,012,684 at a weighted average interest rate of 0.03%. 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 six months ended September 30, 2015, interest expense and fees related to self-deposited inverse floaters amounted to $14,237 and is included in “Interest expense and fees” in the Statements of Operations.
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 the each fund that have not yet occurred.
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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.
Fees Paid Indirectly – Each fund’s custody fee may be reduced by a credit earned under an arrangement that measures the value of U.S. dollars deposited with the custodian by each fund. The amount of the credit, for the six months ended September 30, 2015, is shown as a reduction of total expenses in the Statements of Operations. For the six months ended September 30, 2015, custody fees were not reduced for the Mississippi Fund, North Carolina Fund, Tennessee Fund, and the West Virginia Fund.
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 made during the current period will be determined at fiscal year end. The tax character of distributions declared to shareholders for the last fiscal year is as follows:
Year ended 3/31/15 | 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) | $— | $— | $— | $— | $46,957 | $11,636 | $127,881 | $— | ||||||||||||||||||||||||
Tax-exempt income | 3,054,047 | 6,491,818 | 10,957,227 | 3,943,495 | 5,090,940 | 3,131,451 | 9,128,896 | 3,757,344 | ||||||||||||||||||||||||
Total distributions | $3,054,047 | $6,491,818 | $10,957,227 | $3,943,495 | $5,137,897 | $3,143,087 | $9,256,777 | $3,757,344 |
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The federal tax cost and the tax basis components of distributable earnings were as follows:
As of 9/30/15 | Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | ||||||||||||
Cost of investments | $79,162,162 | $176,314,431 | $305,402,240 | $105,721,338 | ||||||||||||
Gross appreciation | 6,003,526 | 14,961,519 | 25,931,915 | 8,562,893 | ||||||||||||
Gross depreciation | (244,162 | ) | (291,646 | ) | (689,442 | ) | (162,501 | ) | ||||||||
Net unrealized appreciation (depreciation) | $5,759,364 | $14,669,873 | $25,242,473 | $8,400,392 | ||||||||||||
As of 3/31/15 | ||||||||||||||||
Undistributed ordinary income | — | 37,622 | 5,035 | 63,188 | ||||||||||||
Undistributed tax-exempt income | 315,682 | 600,858 | 1,131,891 | 341,205 | ||||||||||||
Capital loss carryforwards | (2,572,631 | ) | (6,659,894 | ) | (12,012,153 | ) | (5,329,621 | ) | ||||||||
Other temporary differences | (268,420 | ) | (567,669 | ) | (938,224 | ) | (321,759 | ) | ||||||||
Net unrealized appreciation (depreciation) | 7,338,368 | 16,979,829 | 29,348,550 | 9,709,379 | ||||||||||||
As of 9/30/15 | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | ||||||||||||
Cost of investments | $158,682,603 | $94,780,950 | $252,169,736 | $111,692,930 | ||||||||||||
Gross appreciation | 11,398,393 | 6,964,334 | 19,884,627 | 7,404,798 | ||||||||||||
Gross depreciation | (260,791 | ) | (360,639 | ) | (2,274,544 | ) | (193,017 | ) | ||||||||
Net unrealized appreciation (depreciation) | $11,137,602 | $6,603,695 | $17,610,083 | $7,211,781 | ||||||||||||
As of 3/31/15 | ||||||||||||||||
Undistributed ordinary income | 6,569 | 1,815 | 187,172 | — | ||||||||||||
Undistributed tax-exempt income | 427,043 | 744,418 | 499,789 | 311,371 | ||||||||||||
Capital loss carryforwards | (8,256,103 | ) | (3,771,241 | ) | (9,720,281 | ) | (5,019,150 | ) | ||||||||
Other temporary differences | (417,427 | ) | (266,083 | ) | (765,022 | ) | (323,835 | ) | ||||||||
Net unrealized appreciation (depreciation) | 13,080,483 | 7,841,393 | 20,598,694 | 8,683,508 |
The aggregate cost above includes prior fiscal year end tax adjustments, if applicable.
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, 2015, 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 | $(583,457 | ) | $(3,461,445 | ) | $(7,907,980 | ) | $(2,523,802 | ) | $(3,349,099 | ) | $(1,991,278 | ) | $(3,223,580 | ) | $(1,437,387 | ) | ||||||||||||||||
Long-Term | (1,989,174 | ) | (1,521,994 | ) | (4,104,173 | ) | (1,507,897 | ) | (3,461,755 | ) | (1,722,618 | ) | (6,293,080 | ) | (3,267,207 | ) | ||||||||||||||||
Total | $(2,572,631 | ) | $(4,983,439 | ) | $(12,012,153 | ) | $(4,031,699 | ) | $(6,810,854 | ) | $(3,713,896 | ) | $(9,516,660 | ) | $(4,704,594 | ) |
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
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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 | |||||||||||||||||||||||||||||
Six months ended 9/30/15 | Year ended 3/31/15 | Six months ended 9/30/15 | Year ended 3/31/15 | Six months ended 9/30/15 | Year ended 3/31/15 | Six months ended 9/30/15 | Year ended 3/31/15 | |||||||||||||||||||||||||
Class A | $1,462,146 | $3,002,563 | $2,853,580 | $5,652,492 | $4,667,483 | $9,379,601 | $1,928,653 | $3,769,713 | ||||||||||||||||||||||||
Class B | 23,171 | 51,484 | 74,027 | 154,597 | 60,688 | 125,884 | 81,217 | 173,782 | ||||||||||||||||||||||||
Class C | — | — | 339,919 | 684,729 | 727,842 | 1,451,742 | — | — | ||||||||||||||||||||||||
Total | $1,485,317 | $3,054,047 | $3,267,526 | $6,491,818 | $5,456,013 | $10,957,227 | $2,009,870 | $3,943,495 | ||||||||||||||||||||||||
South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | |||||||||||||||||||||||||||||
Six months ended 9/30/15 | Year ended 3/31/15 | Six months ended 9/30/15 | Year ended 3/31/15 | Six months ended 9/30/15 | Year ended 3/31/15 | Six months ended 9/30/15 | Year ended 3/31/15 | |||||||||||||||||||||||||
Class A | $2,476,553 | $5,029,139 | $1,497,565 | $3,100,058 | $3,970,371 | $8,569,408 | $1,842,572 | $3,728,386 | ||||||||||||||||||||||||
Class B | 48,971 | 108,758 | 20,421 | 43,029 | 21,027 | 52,749 | 13,959 | 28,958 | ||||||||||||||||||||||||
Class C | — | — | — | — | 296,949 | 634,620 | — | — | ||||||||||||||||||||||||
Total | $2,525,524 | $5,137,897 | $1,517,986 | $3,143,087 | $4,288,347 | $9,256,777 | $1,856,531 | $3,757,344 |
(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 the 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 six months ended September 30, 2015, 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 | |||||||
$2,934 | $6,663 | $11,623 | $3,984 | $5,957 | $3,562 | $9,576 | $4,150 |
The management fee incurred for the six months ended September 30, 2015 was equivalent to an annual effective rate of 0.44% 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, excluding interest, taxes, extraordinary expenses, brokerage and transaction costs, and investment-related expenses, 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 | |||||||
Class A | 0.90% | 0.93% | ||||||
Class B | 1.65% | 1.68% | ||||||
Class C | 1.65% | 1.68% |
These written agreements will continue until modified by the funds’ Board of Trustees, but such agreements will continue at least until July 31, 2016. For the six months ended September 30, 2015, the actual operating expenses for these funds did not exceed the limits described above and therefore, the investment adviser did not pay any portion of these funds’ expenses under these agreements.
For the period April 1, 2015 through July 31, 2015, the investment adviser had agreed in writing to pay a portion of the following funds’ total annual operating expenses, excluding interest, taxes, extraordinary expenses, brokerage and transaction costs, and
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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:
South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | |||||
Class A | 0.91% | 0.94% | 0.89% | 0.90% | ||||
Class B | 1.66% | 1.69% | 1.64% | 1.65% | ||||
Class C | N/A | N/A | 1.64% | N/A |
These written agreements terminated on July 31, 2015. For the period April 1, 2015 through July 31, 2015, this reduction amounted to the following and is included in the reduction of total expenses in the Statements of Operations:
South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | |||
$— | $147 | $— | $11,110 |
Effective August 1, 2015, the investment adviser has agreed in writing to pay a portion of the following funds’ total annual operating expenses, excluding 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:
South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | |||||
Class A | 0.84% | 0.88% | 0.81% | 0.87% | ||||
Class B | 1.59% | 1.63% | 1.56% | 1.62% | ||||
Class C | N/A | N/A | 1.56% | 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, 2016. For the period August 1, 2015 through September 30, 2015, this reduction amounted to the following and is included in the reduction of total expenses in the Statements of Operations:
South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | |||
$13,927 | $9,551 | $28,846 | $11,245 |
Distributor – MFS Fund Distributors, Inc. (MFD), a wholly-owned subsidiary of MFS, as distributor, received the following amounts for the six months ended September 30, 2015, 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 | |||||||
$3,194 | $4,358 | $10,889 | $4,216 | $8,725 | $4,654 | $4,049 | $4,630 |
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 Plan (d) | Annual Effective Rate (e) | Distribution and Service Fee | ||||||||||||||||
Mississippi Fund | — | 0.25% | 0.25% | 0.10% | $104,384 | |||||||||||||||
New York Fund | — | 0.25% | 0.25% | 0.25% | 204,075 | |||||||||||||||
North Carolina Fund | — | 0.25% | 0.25% | 0.25% | 346,367 | |||||||||||||||
Pennsylvania Fund | — | 0.25% | 0.25% | 0.10% | 137,137 | |||||||||||||||
South Carolina Fund | — | 0.25% | 0.25% | 0.25% | 210,478 | |||||||||||||||
Tennessee Fund | — | 0.25% | 0.25% | 0.25% | 126,893 | |||||||||||||||
Virginia Fund | — | 0.25% | 0.25% | 0.25% | 314,373 | |||||||||||||||
West Virginia Fund | — | 0.25% | 0.25% | 0.25% | 149,064 |
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CLASS B | ||||||||||||||||||||
Distribution Fee Rate (d) | Service Fee Rate (d) | Total Plan (d) | Annual Effective Rate (e) | Distribution and Service Fee | ||||||||||||||||
Mississippi Fund | 0.75% | 0.25% | 1.00% | 0.76% | $8,156 | |||||||||||||||
New York Fund | 0.75% | 0.25% | 1.00% | 1.00% | 26,812 | |||||||||||||||
North Carolina Fund | 0.75% | 0.25% | 1.00% | 1.00% | 23,090 | |||||||||||||||
Pennsylvania Fund | 0.75% | 0.25% | 1.00% | 0.86% | 29,445 | |||||||||||||||
South Carolina Fund | 0.75% | 0.25% | 1.00% | 1.00% | 22,316 | |||||||||||||||
Tennessee Fund | 0.75% | 0.25% | 1.00% | 1.00% | 9,254 | |||||||||||||||
Virginia Fund | 0.75% | 0.25% | 1.00% | 1.00% | 8,723 | |||||||||||||||
West Virginia Fund | 0.75% | 0.25% | 1.00% | 1.00% | 5,946 | |||||||||||||||
CLASS C | ||||||||||||||||||||
Distribution Fee Rate (d) | Service Fee Rate (d) | Total Plan (d) | Annual Effective Rate (e) | Distribution and Service Fee | ||||||||||||||||
New York Fund | 0.75% | 0.25% | 1.00% | 1.00% | $123,461 | |||||||||||||||
North Carolina Fund | 0.75% | 0.25% | 1.00% | 1.00% | 277,434 | |||||||||||||||
Virginia Fund | 0.75% | 0.25% | 1.00% | 1.00% | 123,256 |
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 | $112,540 | $354,348 | $646,891 | $166,582 | $232,794 | $136,147 | $446,352 | $155,010 |
(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 six months ended September 30, 2015 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 six months ended September 30, 2015, 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 | $1,933 | $2,192 | $4,806 | $69 | $2,094 | $628 | $2,265 | $1,116 | ||||||||||||||||||||||||
Class B | — | — | — | 1 | 2 | — | — | — | ||||||||||||||||||||||||
Class C | N/A | — | — | N/A | N/A | N/A | 65 | 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, 2016. For the six months ended September 30, 2015, this reduction amounted to $62,631 and 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, 2016. For the six months ended September 30, 2015, this reduction amounted to $1,954, and 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, 2016. For the six months ended September 30, 2015, this reduction amounted to $82,283 and 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, 2016. For the six months ended September 30, 2015, this reduction amounted to $4,204 and 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. 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 six months ended September 30, 2015, 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 | $— | $— | $— | $— | $64 | $— | $— | $— | ||||||||||||||||||||||||
Class B | 132 | 1,547 | 1,494 | 2,393 | 225 | 96 | 992 | 2,053 | ||||||||||||||||||||||||
Class C | N/A | 359 | 2,058 | N/A | N/A | N/A | 1,492 | N/A |
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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 six months ended September 30, 2015, 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 | $2,450 | $9,850 | $12,599 | $8,057 | $5,952 | $3,250 | $13,029 | $4,165 | ||||||||||||||||||||||||
Percent of average daily net assets | 0.0058% | 0.0102% | 0.0075% | 0.0140% | 0.0069% | 0.0063% | 0.0094% | 0.0069% |
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 six months ended September 30, 2015, 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 | |||||||
$29,975 | $56,056 | $135,275 | $43,274 | $63,022 | $41,053 | $108,556 | $50,482 |
Administrator – MFS provides certain financial, legal, shareholder communications, compliance, and other administrative services to each fund. Under an administrative services agreement, each fund 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 six months ended September 30, 2015 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 | 0.0270% | 0.0206% | 0.0184% | 0.0240% | 0.0211% | 0.0250% | 0.0190% | 0.0236% |
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 for the six months ended September 30, 2015 and were as follows:
Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | |||||||
$113 | $66 | $326 | $115 | $317 | $68 | $326 | $315 |
The liability for deferred retirement benefits payable to certain independent Trustees under the DB plan amounted to the following at September 30, 2015, 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 | |||||||
$2,504 | $3,196 | $5,657 | $2,399 | $5,685 | $3,250 | $5,679 | $5,682 |
Other – These funds and certain other funds managed by MFS (the funds) have entered into service agreements (the ISO Agreements) which provide for payment of fees solely by the funds to Tarantino LLC in return for the provision of services of an Independent Senior Officer (ISO) for the funds. Frank L. Tarantino serves as the ISO and is an officer of the funds and the sole member of Tarantino LLC. The funds can terminate the ISO Agreements with Tarantino LLC at any time under the terms of the ISO Agreement. For the six months ended September 30, 2015, the fees paid by each fund under this agreement 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 | |||||||
$94 | $213 | $372 | $128 | $191 | $113 | $307 | $133 |
MFS has agreed to bear all expenses associated with office space, other administrative support, and supplies provided to the ISO.
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.
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(4) | Portfolio Securities |
For the six months ended September 30, 2015, 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 | $6,120,693 | $16,106,842 | $17,938,670 | $13,411,500 | $7,556,988 | $10,525,141 | $12,232,156 | $6,330,203 | ||||||||||||||||||||||||
Sales | $8,143,914 | $10,512,309 | $21,361,682 | $12,344,781 | $4,271,896 | $7,382,910 | $19,685,419 | $9,797,577 |
(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 | |||||||||||||||||||||||||||||||
Six months ended 9/30/15 | Year ended 3/31/15 | Six months ended 9/30/15 | Year ended 3/31/15 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | ||||||||||||||||||||||||||||||||
Class A | 310,213 | $3,057,219 | 525,714 | $5,207,060 | 626,161 | $6,959,014 | 916,124 | $10,156,077 | ||||||||||||||||||||||||
Class B | 8,574 | 84,700 | 10,896 | 107,799 | 15,017 | 166,005 | 26,353 | 289,253 | ||||||||||||||||||||||||
Class C | — | — | — | — | 127,791 | 1,419,400 | 273,083 | 3,021,582 | ||||||||||||||||||||||||
318,787 | $3,141,919 | 536,610 | $5,314,859 | 768,969 | $8,544,419 | 1,215,560 | $13,466,912 | |||||||||||||||||||||||||
Shares issued to shareholders in reinvestment of distributions | ||||||||||||||||||||||||||||||||
Class A | 130,443 | $1,287,057 | 261,437 | $2,591,092 | 226,327 | $2,511,026 | 433,642 | $4,819,979 | ||||||||||||||||||||||||
Class B | 2,019 | 19,939 | 4,358 | 43,208 | 5,095 | 56,372 | 10,435 | 115,653 | ||||||||||||||||||||||||
Class C | — | — | — | — | 25,975 | 287,890 | 51,323 | 569,691 | ||||||||||||||||||||||||
132,462 | $1,306,996 | 265,795 | $2,634,300 | 257,397 | $2,855,288 | 495,400 | $5,505,323 | |||||||||||||||||||||||||
Shares reacquired | ||||||||||||||||||||||||||||||||
Class A | (601,237 | ) | $(5,934,328 | ) | (1,036,538 | ) | $(10,265,541 | ) | (700,803 | ) | $(7,772,829 | ) | (1,167,388 | ) | $(12,947,890 | ) | ||||||||||||||||
Class B | (10,395 | ) | (102,549 | ) | (62,811 | ) | (620,253 | ) | (25,457 | ) | (281,545 | ) | (63,815 | ) | (705,878 | ) | ||||||||||||||||
Class C | — | — | — | — | (138,946 | ) | (1,539,883 | ) | (349,619 | ) | (3,867,572 | ) | ||||||||||||||||||||
(611,632 | ) | $(6,036,877 | ) | (1,099,349 | ) | $(10,885,794 | ) | (865,206 | ) | $(9,594,257 | ) | (1,580,822 | ) | $(17,521,340 | ) | |||||||||||||||||
Net change | ||||||||||||||||||||||||||||||||
Class A | (160,581 | ) | $(1,590,052 | ) | (249,387 | ) | $(2,467,389 | ) | 151,685 | $1,697,211 | 182,378 | $2,028,166 | ||||||||||||||||||||
Class B | 198 | 2,090 | (47,557 | ) | (469,246 | ) | (5,345 | ) | (59,168 | ) | (27,027 | ) | (300,972 | ) | ||||||||||||||||||
Class C | — | — | — | — | 14,820 | 167,407 | (25,213 | ) | (276,299 | ) | ||||||||||||||||||||||
(160,383 | ) | $(1,587,962 | ) | (296,944 | ) | $(2,936,635 | ) | 161,160 | $1,805,450 | 130,138 | $1,450,895 |
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North Carolina Fund | Pennsylvania Fund | |||||||||||||||||||||||||||||||
Six months ended 9/30/15 | Year ended 3/31/15 | Six months ended 9/30/15 | Year ended 3/31/15 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | ||||||||||||||||||||||||||||||||
Class A | 1,201,058 | $14,218,192 | 2,507,177 | $29,795,681 | 641,660 | $6,601,517 | 891,353 | $9,165,636 | ||||||||||||||||||||||||
Class B | 7,300 | 87,002 | 20,575 | 245,270 | 7,392 | 76,168 | 8,888 | 92,225 | ||||||||||||||||||||||||
Class C | 209,245 | 2,476,560 | 517,870 | 6,159,618 | — | — | — | — | ||||||||||||||||||||||||
1,417,603 | $16,781,754 | 3,045,622 | $36,200,569 | 649,052 | $6,677,685 | 900,241 | $9,257,861 | |||||||||||||||||||||||||
Shares issued to shareholders in reinvestment of distributions | ||||||||||||||||||||||||||||||||
Class A | 342,184 | $4,053,104 | 660,252 | $7,857,355 | 161,629 | $1,665,858 | 314,957 | $3,253,750 | ||||||||||||||||||||||||
Class B | 4,736 | 56,030 | 9,839 | 116,891 | 7,400 | 76,468 | 15,673 | 162,296 | ||||||||||||||||||||||||
Class C | 52,659 | 623,209 | 102,808 | 1,222,358 | — | — | — | — | ||||||||||||||||||||||||
399,579 | $4,732,343 | 772,899 | $9,196,604 | 169,029 | $1,742,326 | 330,630 | $3,416,046 | |||||||||||||||||||||||||
Shares reacquired | ||||||||||||||||||||||||||||||||
Class A | (1,786,204 | ) | $(21,146,045 | ) | (3,798,057 | ) | $(45,099,821 | ) | (783,634 | ) | $(8,080,416 | ) | (1,691,552 | ) | $(17,407,723 | ) | ||||||||||||||||
Class B | (28,161 | ) | (333,098 | ) | (74,514 | ) | (881,247 | ) | (51,961 | ) | (536,670 | ) | (123,730 | ) | (1,278,872 | ) | ||||||||||||||||
Class C | (253,426 | ) | (3,001,657 | ) | (811,218 | ) | (9,623,884 | ) | — | — | — | — | ||||||||||||||||||||
(2,067,791 | ) | $(24,480,800 | ) | (4,683,789 | ) | $(55,604,952 | ) | (835,595 | ) | $(8,617,086 | ) | (1,815,282 | ) | $(18,686,595 | ) | |||||||||||||||||
Net change | ||||||||||||||||||||||||||||||||
Class A | (242,962 | ) | $(2,874,749 | ) | (630,628 | ) | $(7,446,785 | ) | 19,655 | $186,959 | (485,242 | ) | $(4,988,337 | ) | ||||||||||||||||||
Class B | (16,125 | ) | (190,066 | ) | (44,100 | ) | (519,086 | ) | (37,169 | ) | (384,034 | ) | (99,169 | ) | (1,024,351 | ) | ||||||||||||||||
Class C | 8,478 | 98,112 | (190,540 | ) | (2,241,908 | ) | — | — | — | — | ||||||||||||||||||||||
(250,609 | ) | $(2,966,703 | ) | (865,268 | ) | $(10,207,779 | ) | (17,514 | ) | $(197,075 | ) | (584,411 | ) | $(6,012,688 | ) | |||||||||||||||||
South Carolina Fund | Tennessee Fund | |||||||||||||||||||||||||||||||
Six months ended 9/30/15 | Year ended 3/31/15 | Six months ended 9/30/15 | Year ended 3/31/15 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | ||||||||||||||||||||||||||||||||
Class A | 514,941 | $6,257,181 | 1,530,675 | $18,617,267 | 475,353 | $5,018,999 | 884,042 | $9,335,433 | ||||||||||||||||||||||||
Class B | 2,453 | 29,582 | 214 | 2,601 | 2,239 | 23,637 | 22,150 | 235,111 | ||||||||||||||||||||||||
517,394 | $6,286,763 | 1,530,889 | $18,619,868 | 477,592 | $5,042,636 | 906,192 | $9,570,544 | |||||||||||||||||||||||||
Shares issued to shareholders in reinvestment of distributions | ||||||||||||||||||||||||||||||||
Class A | 188,567 | $2,288,825 | 369,839 | $4,496,605 | 127,000 | $1,336,269 | 255,709 | $2,706,451 | ||||||||||||||||||||||||
Class B | 3,947 | 47,886 | 8,697 | 105,628 | 1,756 | 18,462 | 3,614 | 38,226 | ||||||||||||||||||||||||
192,514 | $2,336,711 | 378,536 | $4,602,233 | 128,756 | $1,354,731 | 259,323 | $2,744,677 | |||||||||||||||||||||||||
Shares reacquired | ||||||||||||||||||||||||||||||||
Class A | (842,741 | ) | $(10,233,890 | ) | (2,126,138 | ) | $(25,774,746 | ) | (651,133 | ) | $(6,850,240 | ) | (1,670,747 | ) | $(17,679,656 | ) | ||||||||||||||||
Class B | (25,417 | ) | (308,425 | ) | (66,951 | ) | (808,929 | ) | (7,380 | ) | (78,217 | ) | (31,792 | ) | (337,344 | ) | ||||||||||||||||
(868,158 | ) | $(10,542,315 | ) | (2,193,089 | ) | $(26,583,675 | ) | (658,513 | ) | $(6,928,457 | ) | (1,702,539 | ) | $(18,017,000 | ) | |||||||||||||||||
Net change | ||||||||||||||||||||||||||||||||
Class A | (139,233 | ) | $(1,687,884 | ) | (225,624 | ) | $(2,660,874 | ) | (48,780 | ) | $(494,972 | ) | (530,996 | ) | $(5,637,772 | ) | ||||||||||||||||
Class B | (19,017 | ) | (230,957 | ) | (58,040 | ) | (700,700 | ) | (3,385 | ) | (36,118 | ) | (6,028 | ) | (64,007 | ) | ||||||||||||||||
(158,250 | ) | $(1,918,841 | ) | (283,664 | ) | $(3,361,574 | ) | (52,165 | ) | $(531,090 | ) | (537,024 | ) | $(5,701,779 | ) |
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Virginia Fund | West Virginia Fund | |||||||||||||||||||||||||||||||
Six months ended 9/30/15 | Year ended 3/31/15 | Six months ended 9/30/15 | Year ended 3/31/15 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | ||||||||||||||||||||||||||||||||
Class A | 716,710 | $8,119,710 | 1,604,829 | $18,186,586 | 262,153 | $2,932,219 | 723,027 | $8,136,413 | ||||||||||||||||||||||||
Class B | 1,809 | 20,627 | 15,028 | 170,612 | 4,002 | 44,872 | 2,256 | 25,811 | ||||||||||||||||||||||||
Class C | 116,182 | 1,313,317 | 244,201 | 2,760,979 | — | — | — | — | ||||||||||||||||||||||||
834,701 | $9,453,654 | 1,864,058 | $21,118,177 | 266,155 | $2,977,091 | 725,283 | $8,162,224 | |||||||||||||||||||||||||
Shares issued to shareholders in reinvestment of distributions | ||||||||||||||||||||||||||||||||
Class A | 305,031 | $3,450,891 | 628,199 | $7,137,437 | 153,735 | $1,722,352 | 306,334 | $3,449,550 | ||||||||||||||||||||||||
Class B | 1,783 | 20,161 | 3,998 | 45,381 | 1,135 | 12,705 | 2,215 | 24,925 | ||||||||||||||||||||||||
Class C | 23,656 | 267,587 | 49,123 | 558,038 | — | — | — | — | ||||||||||||||||||||||||
330,470 | $3,738,639 | 681,320 | $7,740,856 | 154,870 | $1,735,057 | 308,549 | $3,474,475 | |||||||||||||||||||||||||
Shares reacquired | ||||||||||||||||||||||||||||||||
Class A | (1,520,567 | ) | $(17,188,596 | ) | (3,242,524 | ) | $(36,854,824 | ) | (519,900 | ) | $(5,832,298 | ) | (1,266,943 | ) | $(14,224,932 | ) | ||||||||||||||||
Class B | (30,204 | ) | (341,463 | ) | (51,329 | ) | (583,689 | ) | (8,965 | ) | (100,396 | ) | (16,098 | ) | (180,363 | ) | ||||||||||||||||
Class C | (209,183 | ) | (2,363,941 | ) | (375,439 | ) | (4,235,401 | ) | — | — | — | — | ||||||||||||||||||||
(1,759,954 | ) | $(19,894,000 | ) | (3,669,292 | ) | $(41,673,914 | ) | (528,865 | ) | $(5,932,694 | ) | (1,283,041 | ) | $(14,405,295 | ) | |||||||||||||||||
Net change | ||||||||||||||||||||||||||||||||
Class A | (498,826 | ) | $(5,617,995 | ) | (1,009,496 | ) | $(11,530,801 | ) | (104,012 | ) | $(1,177,727 | ) | (237,582 | ) | $(2,638,969 | ) | ||||||||||||||||
Class B | (26,612 | ) | (300,675 | ) | (32,303 | ) | (367,696 | ) | (3,828 | ) | (42,819 | ) | (11,627 | ) | (129,627 | ) | ||||||||||||||||
Class C | (69,345 | ) | (783,037 | ) | (82,115 | ) | (916,384 | ) | — | — | — | — | ||||||||||||||||||||
(594,783 | ) | $(6,701,707 | ) | (1,123,914 | ) | $(12,814,881 | ) | (107,840 | ) | $(1,220,546 | ) | (249,209 | ) | $(2,768,596 | ) |
(6) | Line of Credit |
Each fund and certain other funds managed by MFS participate in a $1.25 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 Overnight Federal Reserve funds rate or daily 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 Overnight Federal Reserve funds rate plus an agreed upon spread. For the six months ended September 30, 2015, 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 | $130 | $299 | $512 | $178 | $263 | $160 | $435 | $187 | ||||||||||||||||||||||||
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 six months ended September 30, 2015, 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 | 392,651 | 10,016,580 | (8,866,962 | ) | 1,542,269 | |||||||||||
New York Fund | 11,356,169 | 18,473,659 | (25,455,144 | ) | 4,374,684 | |||||||||||
North Carolina Fund | 7,496,659 | 23,698,351 | (27,926,824 | ) | 3,268,186 | |||||||||||
Pennsylvania Fund | 1,736,542 | 15,722,610 | (15,615,336 | ) | 1,843,816 | |||||||||||
South Carolina Fund | 8,648,818 | 9,072,556 | (16,437,569 | ) | 1,283,805 | |||||||||||
Tennessee Fund | 3,310,314 | 13,969,062 | (15,682,605 | ) | 1,596,771 | |||||||||||
Virginia Fund | 2,885,858 | 26,952,252 | (26,567,776 | ) | 3,270,334 | |||||||||||
West Virginia Fund | 3,623,362 | 10,277,028 | (12,938,834 | ) | 961,556 | |||||||||||
Realized Gain (Loss) | Capital Gain Distributions | Dividend Income | Ending Value | |||||||||||||
Mississippi Fund | $— | $— | $574 | $1,542,269 | ||||||||||||
New York Fund | — | — | 3,505 | 4,374,684 | ||||||||||||
North Carolina Fund | — | — | 2,149 | 3,268,186 | ||||||||||||
Pennsylvania Fund | — | — | 1,731 | 1,843,816 | ||||||||||||
South Carolina Fund | — | — | 2,101 | 1,283,805 | ||||||||||||
Tennessee Fund | — | — | 2,087 | 1,596,771 | ||||||||||||
Virginia Fund | — | — | 2,321 | 3,270,334 | ||||||||||||
West Virginia Fund | — | — | 578 | 961,556 |
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BOARD REVIEW OF INVESTMENT ADVISORY AGREEMENT
The Investment Company Act of 1940 requires that both the full Board of Trustees and a majority of the non-interested (“independent”) Trustees, voting separately, annually approve the continuation of each Fund’s investment advisory agreement with MFS. The Trustees consider matters bearing on the Funds and their advisory arrangements at their meetings throughout the year, including a review of performance data at each regular meeting. In addition, the independent Trustees met several times over the course of three months beginning in May and ending in July, 2015 (“contract review meetings”) for the specific purpose of considering whether to approve the continuation of the investment advisory agreement for the Funds and the other investment companies that the Board oversees (the “MFS Funds”). The independent Trustees were assisted in their evaluation of the Funds’ investment advisory agreement by independent legal counsel, from whom they received separate legal advice and with whom they met separately from MFS during various contract review meetings. The independent Trustees were also assisted in this process by the MFS Funds’ Independent Senior Officer, a senior officer appointed by and reporting to the independent Trustees.
In connection with their deliberations regarding the continuation of the investment advisory agreement, the Trustees, including the independent Trustees, considered such information and factors as they believed, in light of the legal advice furnished to them and their own business judgment, to be relevant. The investment advisory agreement for each Fund was considered separately, although the Trustees also took into account the common interests of all MFS Funds in their review. As described below, the Trustees considered the nature, quality, and extent of the various investment advisory, administrative, and shareholder services performed by MFS under the existing investment advisory agreement and other arrangements with the Funds.
In connection with their contract review meetings, the Trustees received and relied upon materials that included, among other items: (i) information provided by Lipper Inc., an independent third party, on the investment performance of the Funds for various time periods ended December 31, 2014 and the investment performance of a group of funds with substantially similar investment classifications/objectives (the “Lipper performance universe”), (ii) information provided by Lipper Inc. on the Funds’ advisory fees and other expenses and the advisory fees and other expenses of comparable funds identified by Lipper Inc. (the “Lipper expense group”), (iii) information provided by MFS on the advisory fees of comparable portfolios of other clients of MFS, including institutional separate accounts and other clients, (iv) information as to whether and to what extent applicable expense waivers, reimbursements or fee “breakpoints” are observed for the Funds, (v) information regarding MFS’ financial results and financial condition, including MFS’ and certain of its affiliates’ estimated profitability from services performed for the Funds and the MFS Funds as a whole, and compared to MFS’ institutional business, (vi) MFS’ views regarding the outlook for the mutual fund industry and the strategic business plans of MFS, (vii) descriptions of various functions performed by MFS for the Funds, such as compliance monitoring and portfolio trading practices, and (viii) information regarding the overall organization of MFS, including information about MFS’ senior management and other personnel providing investment advisory, administrative and other services to the Funds and the other MFS Funds. The comparative performance, fee and expense information prepared and provided by Lipper Inc. was not independently verified and the independent Trustees did not independently verify any information provided to them by MFS.
The Trustees’ conclusion as to the continuation of the investment advisory agreement was based on a comprehensive consideration of all information provided to the Trustees and not the result of any single factor. Some of the factors that figured particularly in the Trustees’ deliberations are described below, although individual Trustees may have evaluated the information presented differently from one another, giving different weights to various factors. It is also important to recognize that the fee arrangements for the Funds and other MFS Funds are the result of years of review and discussion between the independent Trustees and MFS, that certain aspects of such arrangements may receive greater scrutiny in some years than in others, and that the Trustees’ conclusions may be based, in part, on their consideration of these same arrangements during the course of the year and in prior years.
Based on information provided by Lipper Inc. and MFS, the Trustees reviewed each Fund’s total return investment performance as well as the performance of peer groups of funds over various time periods. The Trustees placed particular emphasis on the total return performance of each Fund’s Class A shares in comparison to the performance of funds in its respective Lipper performance universe over the three-year period ended December 31, 2014, which the Trustees believed was a long enough period to reflect differing market conditions. See below for a description of the performance information considered by the Trustees.
In assessing the reasonableness of each Fund’s advisory fee, the Trustees considered, among other information, each Fund’s advisory fee and the total expense ratio of each Fund’s Class A shares as a percentage of average daily net assets and the advisory fee and total expense ratios of peer groups of funds based on information provided by Lipper Inc. The Trustees considered whether the Funds were subject to any fee waivers or reductions or expense limitations. See below for a description of the fee information considered by the Trustees.
The Trustees also considered the advisory fees charged by MFS to any institutional separate accounts advised by MFS (“separate accounts”) and unaffiliated investment companies for which MFS serves as subadviser (“subadvised funds”) that have comparable investment strategies to the Fund. In comparing these fees, the Trustees considered information provided by MFS as to the generally broader scope of services provided by MFS to the Fund, as well as the more extensive regulatory burdens imposed on MFS in managing the Fund, in comparison to separate accounts and subadvised funds. The Trustees also considered the higher demands placed on MFS’ investment personnel and trading infrastructure as a result of the daily cash in-flows and out-flows of the Fund in comparison to separate accounts.
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Board Review of Investment Advisory Agreement – continued
The Trustees also considered whether each Fund may benefit from any economies of scale in the management of the Fund in the event of growth in assets of the Fund and/or growth in assets of the MFS Funds as a whole. They noted that each Fund’s advisory fee rate schedule is not subject to any breakpoints. Taking into account the information noted below, the Trustees determined not to recommend any advisory fee breakpoints for the Funds at this time. The Trustees also noted that MFS has agreed in writing to waive a portion of the management fees of certain MFS Funds, including the Funds, if the total combined assets of certain funds within the MFS Funds’ complex increase above agreed upon thresholds (the “group fee waiver”), enabling each Fund’s shareholders to share in the benefits from any economies of scale at the complex level. The group fee waiver is reviewed and renewed annually between the Board and MFS. The Trustees concluded that the group fee waiver was sufficient to allow each Fund to benefit from economies of scale as its assets and overall complex assets grow.
The Trustees also considered information prepared by MFS relating to MFS’ costs and profits with respect to each Fund, the MFS Funds considered as a group, and other investment companies and accounts advised by MFS, as well as MFS’ methodologies used to determine and allocate its costs to the MFS Funds, the Funds and other accounts and products for purposes of estimating profitability.
After reviewing these and other factors described herein, the Trustees concluded, within the context of their overall conclusions regarding the investment advisory agreement, that the advisory fees charged to each Fund represent reasonable compensation in light of the services being provided by MFS to the Funds.
In addition, the Trustees considered MFS’ resources and related efforts to continue to retain, attract and motivate capable personnel to serve the Funds. The Trustees also considered current and developing conditions in the financial services industry, including the presence of large and well-capitalized companies which are spending, and appear to be prepared to continue to spend, substantial sums to engage personnel and to provide services to competing investment companies. In this regard, the Trustees also considered the financial resources of MFS and its ultimate parent, Sun Life Financial Inc. The Trustees also considered the advantages and possible disadvantages to the Funds of having an adviser that also serves other investment companies as well as other accounts.
The Trustees also considered the nature, quality, cost, and extent of administrative, transfer agency, and distribution services provided to the Funds by MFS and its affiliates under agreements and plans other than the investment advisory agreement, including any 12b-1 fees the Funds pay to MFS Fund Distributors, Inc. (“MFD”), an affiliate of MFS. The Trustees also considered the nature, extent and quality of certain other services MFS performs or arranges for on the Funds’ behalf, which may include securities lending programs, directed expense payment programs, class action recovery programs, and MFS’ interaction with third-party service providers, principally custodians and sub-custodians. The Trustees concluded that the various non-advisory services provided by MFS and its affiliates on behalf of the Funds were satisfactory.
The Trustees also considered benefits to MFS from the use of the Funds’ portfolio brokerage commissions, if applicable, to pay for investment research and various other factors. Additionally, the Trustees considered so-called “fall-out benefits” to MFS such as reputational value derived from serving as investment manager to the Funds.
Based on their evaluation of factors that they deemed to be material, including those factors described above, the Board of Trustees, including the independent Trustees, concluded that each Fund’s investment advisory agreement with MFS should be continued for an additional one-year period, commencing August 1, 2015.
MFS Mississippi Municipal Bond Fund
The total return performance of the Fund’s Class A shares was in the 3rd quintile relative to the other funds in the universe for the three-year period ended December 31, 2014 (the 1st quintile being the best performers and the 5th quintile being the worst performers). The total return performance of the Fund’s Class A shares was in the 3rd quintile for each of the one- and five-year periods ended December 31, 2014 relative to the Lipper performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.
In the course of their deliberations, the Trustees took into account information provided by MFS in connection with the contract review meetings, as well as during investment review meetings conducted with portfolio management personnel during the course of the year regarding the Fund’s performance. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the investment advisory agreement, that they were satisfied with MFS’ responses and efforts relating to investment performance.
In assessing the reasonableness of the Fund’s advisory fee, the Trustees considered that MFD currently observes a Class A 12b-1 fee waiver, which may not be changed without the Trustees’ approval. The Trustees also considered that, according to the Lipper data (which takes into account any fee reductions or expense limitations that were in effect during the Fund’s last fiscal year), the Fund’s effective advisory fee rate and total expense ratio were each approximately at the Lipper expense group median.
MFS New York Municipal Bond Fund
The total return performance of the Fund’s Class A shares was in the 3rd quintile relative to the other funds in the universe for the three-year period ended December 31, 2014 (the 1st quintile being the best performers and the 5th quintile being the worst
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Board Review of Investment Advisory Agreement – continued
performers). The total return performance of the Fund’s Class A shares was in the 2nd quintile for the one-year period and the 4th quintile for the five-year period ended December 31, 2014 relative to the Lipper performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.
In the course of their deliberations, the Trustees took into account information provided by MFS in connection with the contract review meetings, as well as during investment review meetings conducted with portfolio management personnel during the course of the year regarding the Fund’s performance. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the investment advisory agreement, that they were satisfied with MFS’ responses and efforts relating to investment performance.
In assessing the reasonableness of the Fund’s advisory fee, the Trustees considered that MFS currently observes an expense limitation for the Fund, which may not be changed without the Trustees’ approval. The Trustees also considered that, according to the Lipper data (which takes into account any fee reductions or expense limitations that were in effect during the Fund’s last fiscal year), the Fund’s effective advisory fee rate was approximately at the Lipper expense group median and the Fund’s total expense ratio was higher than the Lipper expense group median.
MFS North Carolina Municipal Bond Fund
The total return performance of the Fund’s Class A shares was in the 3rd quintile relative to the other funds in the universe for the three-year period ended December 31, 2014 (the 1st quintile being the best performers and the 5th quintile being the worst performers). The total return performance of the Fund’s Class A shares was in the 3rd quintile for each of the one- and five-year periods ended December 31, 2014 relative to the Lipper performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.
In the course of their deliberations, the Trustees took into account information provided by MFS in connection with the contract review meetings, as well as during investment review meetings conducted with portfolio management personnel during the course of the year regarding the Fund’s performance. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the investment advisory agreement, that they were satisfied with MFS’ responses and efforts relating to investment performance.
In assessing the reasonableness of the Fund’s advisory fee, the Trustees considered that MFS currently observes an expense limitation for the Fund, which may not be changed without the Trustees’ approval. The Trustees also considered that, according to the Lipper data (which takes into account any fee reductions or expense limitations that were in effect during the Fund’s last fiscal year), the Fund’s effective advisory fee rate was approximately at the Lipper expense group median and the Fund’s total expense ratio was higher than the Lipper expense group median.
MFS Pennsylvania Municipal Bond Fund
The total return performance of the Fund’s Class A shares was in the 3rd quintile relative to the other funds in the universe for the three-year period ended December 31, 2014 (the 1st quintile being the best performers and the 5th quintile being the worst performers). The total return performance of the Fund’s Class A shares was in the 2nd quintile for the one-year period and the 3rd quintile for the five-year period ended December 31, 2014 relative to the Lipper performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.
In the course of their deliberations, the Trustees took into account information provided by MFS in connection with the contract review meetings, as well as during investment review meetings conducted with portfolio management personnel during the course of the year regarding the Fund’s performance. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the investment advisory agreement, that they were satisfied with MFS’ responses and efforts relating to investment performance.
In assessing the reasonableness of the Fund’s advisory fee, the Trustees considered that MFD currently observes a Class A 12b-1 fee waiver, which may not be changed without the Trustees’ approval. The Trustees also considered that, according to the Lipper data (which takes into account any fee reductions or expense limitations that were in effect during the Fund’s last fiscal year), the Fund’s effective advisory fee rate and total expense ratio were each approximately at the Lipper expense group median.
MFS South Carolina Municipal Bond Fund
The total return performance of the Fund’s Class A shares was in the 4th quintile relative to the other funds in the universe for the three-year period ended December 31, 2014 (the 1st quintile being the best performers and the 5th quintile being the worst performers). The total return performance of the Fund’s Class A shares was in the 3rd quintile for the one-year period and the 4th quintile for the five-year period ended December 31, 2014 relative to the Lipper performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.
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Board Review of Investment Advisory Agreement – continued
The Trustees expressed continued concern to MFS about the substandard investment performance of the Fund. In the course of their deliberations, the Trustees took into account information provided by MFS in connection with the contract review meetings, as well as during investment review meetings conducted with portfolio management personnel during the course of the year. The Trustees observed that there were significant limitations to the usefulness of the comparative data provided by Lipper, Inc., noting that the applicable Lipper universe for the Fund included funds that pursue substantially different investment programs as compared to that pursued by the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the investment advisory agreement, that they were satisfied with MFS’ responses and efforts relating to investment performance.
In assessing the reasonableness of the Fund’s advisory fee, the Trustees considered that MFS currently observes an expense limitation for the Fund, and that MFS has agreed to further reduce such expense limitation for the Fund, which may not be changed without the Trustees’ approval. The Trustees also considered that, according to the Lipper data (which takes into account any fee reductions or expense limitations that were in effect during the Fund’s last fiscal year), the Fund’s effective advisory fee rate was approximately at the Lipper expense group median, and the Fund’s total expense ratio was higher than the Lipper expense group median.
MFS Tennessee Municipal Bond Fund
The total return performance of the Fund’s Class A shares was in the 3rd quintile relative to the other funds in the universe for the three-year period ended December 31, 2014 (the 1st quintile being the best performers and the 5th quintile being the worst performers). The total return performance of the Fund’s Class A shares was in the 3rd quintile for each of the one- and five-year periods ended December 31, 2014 relative to the Lipper performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.
In the course of their deliberations, the Trustees took into account information provided by MFS in connection with the contract review meetings, as well as during investment review meetings conducted with portfolio management personnel during the course of the year regarding the Fund’s performance. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the investment advisory agreement, that they were satisfied with MFS’ responses and efforts relating to investment performance.
In assessing the reasonableness of the Fund’s advisory fee, the Trustees considered that MFS currently observes an expense limitation for the Fund, and that MFS has agreed to further reduce such expense limitation for the Fund, which may not be changed without the Trustees’ approval. The Trustees also considered that, according to the Lipper data (which takes into account any fee reductions or expense limitations that were in effect during the Fund’s last fiscal year), the Fund’s effective advisory fee rate was approximately at the Lipper expense group median, and the Fund’s total expense ratio was higher than the Lipper expense group median.
MFS Virginia Municipal Bond Fund
The total return performance of the Fund’s Class A shares was in the 2nd quintile relative to the other funds in the universe for the three-year period ended December 31, 2014 (the 1st quintile being the best performers and the 5th quintile being the worst performers). The total return performance of the Fund’s Class A shares was in the 2nd quintile for the one-year period and the 3rd quintile for the five-year period ended December 31, 2014 relative to the Lipper performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.
In the course of their deliberations, the Trustees took into account information provided by MFS in connection with the contract review meetings, as well as during investment review meetings conducted with portfolio management personnel during the course of the year regarding the Fund’s performance. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the investment advisory agreement, that they were satisfied with MFS’ responses and efforts relating to investment performance.
In assessing the reasonableness of the Fund’s advisory fee, the Trustees considered that MFS currently observes an expense limitation for the Fund, and that MFS has agreed to further reduce such expense limitation for the Fund, which may not be changed without the Trustees’ approval. The Trustees also considered that, according to the Lipper data (which takes into account any fee reductions or expense limitations that were in effect during the Fund’s last fiscal year), the Fund’s effective advisory fee rate was approximately at the Lipper expense group median, and the Fund’s total expense ratio was higher than the Lipper expense group median.
MFS West Virginia Municipal Bond Fund
The total return performance of the Fund’s Class A shares was in the 4th quintile relative to the other funds in the universe for the three-year period ended December 31, 2014 (the 1st quintile being the best performers and the 5th quintile being the worst performers). The total return performance of the Fund’s Class A shares was in the 2nd quintile for the one-year period and the 3rd quintile for the five-year period ended December 31, 2014 relative to the Lipper performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.
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Board Review of Investment Advisory Agreement – continued
The Trustees expressed continued concern to MFS about the substandard investment performance of the Fund. In the course of their deliberations, the Trustees took into account information provided by MFS in connection with the contract review meetings, as well as during investment review meetings conducted with portfolio management personnel during the course of the year. The Trustees observed that there were significant limitations to the usefulness of the comparative data provided by Lipper, Inc., noting that the applicable Lipper universe for the Fund included funds that pursue substantially different investment programs as compared to that pursued by the Fund. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the investment advisory agreement, that they were satisfied with MFS’ responses and efforts relating to investment performance.
In assessing the reasonableness of the Fund’s advisory fee, the Trustees considered that MFS currently observes an expense limitation for the Fund, and that MFS has agreed to further reduce such expense limitation for the Fund, which may not be changed without the Trustees’ approval. The Trustees also considered that, according to the Lipper data (which takes into account any fee reductions or expense limitations that were in effect during the Fund’s last fiscal year), the Fund’s effective advisory fee rate was approximately at the Lipper expense group median, and the Fund’s total expense ratio was higher than the Lipper expense group median.
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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 “Market Commentary” and “Announcements” sub sections in the “Market Outlooks” section of mfs.com or by clicking on the fund’s name under “Mutual Funds” in the “Products” section of mfs.com.
PROVISION OF FINANCIAL REPORTS AND SUMMARY PROSPECTUSES
Each fund produces financial reports every six months and updates its summary prospectus and prospectus annually. To avoid sending duplicate copies of materials to households, only one copy of each fund’s annual and semiannual report and summary prospectus may be mailed to shareholders having the same last name and residential address on the fund’s records. However, any shareholder may contact MFSC (please see back cover for address and telephone number) to request that copies of these reports and summary prospectuses be sent personally to that shareholder.
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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.
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OVERNIGHT MAIL
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Table of Contents
SEMIANNUAL REPORT
September 30, 2015
MFS® MUNICIPAL INCOME FUND
LMB-SEM
Table of Contents
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 • MAY LOSE VALUE • NO BANK GUARANTEE
Table of Contents
Dear Shareholders:
Despite weak global growth, the U.S. economy continues to expand modestly, buoyed by firming labor and housing markets and resilient consumer spending. However, the
U.S. Federal Reserve continues to take a cautious approach to raising interest rates.
In Asia, China’s slowing economic growth has raised concerns and fed global market volatility. Commodity exporters have been hurt by weaker Chinese demand. Global oil markets remain oversupplied, further depressing crude oil and gasoline prices. Japan continues to struggle in its attempt to stimulate its economy through monetary and fiscal policy initiatives.
While the eurozone economy is expanding, growth has been mild and inconsistent, while deflation remains a risk. Hopes for a more
robust recovery rest on the European Central Bank’s quantitative easing program.
The world’s financial markets have become increasingly complex in recent years. Now, more than ever, it is important to understand companies on a global basis. At MFS®, we believe our integrated research platform, collaborative culture, active risk management process and long-term focus give us a research advantage.
As investors, we aim to add long-term value. We believe this approach will serve you well as you work with your financial advisor to reach your investment objectives.
Respectfully,
Robert J. Manning
Chairman
MFS Investment Management
November 13, 2015
The opinions expressed in this letter are subject to change and may not be relied upon for investment advice. No forecasts can be guaranteed.
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Portfolio structure (i)
Top ten industries (i) | ||||
Healthcare Revenue – Hospitals | 13.0% | |||
Universities – Colleges | 8.4% | |||
General Obligations – General Purpose | 7.4% | |||
Water & Sewer Utility Revenue | 6.9% | |||
Healthcare Revenue – Long Term Care | 5.2% | |||
State & Local Agencies | 4.9% | |||
Tobacco | 4.5% | |||
Utilities – Municipal Owned | 4.4% | |||
Single Family Housing – State | 4.2% | |||
Airport Revenue | 4.1% |
Composition including fixed income credit quality (a)(i) | ||||
AAA | 7.4% | |||
AA | 24.4% | |||
A | 35.7% | |||
BBB | 18.7% | |||
BB | 4.4% | |||
B | 3.7% | |||
CC | 0.2% | |||
Not Rated | 6.1% | |||
Cash & Cash Equivalents | 0.9% | |||
Other | (1.5)% | |||
Portfolio facts (i) | ||||
Average Duration (d) | 6.8 | |||
Average Effective Maturity (m) | 15.6 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. |
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Portfolio Composition – 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 due to the interest rate move. |
(i) | For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining 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 Other may be negative due to offsets to derivative positions and/or offsets to the leverage created through the issuance of self-deposited inverse floaters.
Where the fund holds convertible bonds, these are treated as part of the equity portion of the portfolio.
Cash & Cash Equivalents can include cash, investments in money market funds, short term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Other can include currency derivatives and/or any offsets to derivative positions.
Percentages are based on net assets as of 9/30/15.
The portfolio is actively managed and current holdings may be different.
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Table of Contents
Fund expenses borne by the shareholders during the period, April 1, 2015 through September 30, 2015
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 April 1, 2015 through September 30, 2015.
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.
4
Table of Contents
Expense Table – continued
Share Class | Annualized Expense Ratio | Beginning Account Value 4/01/15 | Ending Account Value 9/30/15 | Expenses Paid During Period (p) 4/01/15-9/30/15 | ||||||||||||||
A | Actual | 0.74% | $1,000.00 | $1,006.20 | $3.71 | |||||||||||||
Hypothetical (h) | 0.74% | $1,000.00 | $1,021.30 | $3.74 | ||||||||||||||
B | Actual | 1.49% | $1,000.00 | $1,002.42 | $7.46 | |||||||||||||
Hypothetical (h) | 1.49% | $1,000.00 | $1,017.55 | $7.52 | ||||||||||||||
C | Actual | 1.49% | $1,000.00 | $1,002.40 | $7.46 | |||||||||||||
Hypothetical (h) | 1.49% | $1,000.00 | $1,017.55 | $7.52 | ||||||||||||||
I | Actual | 0.49% | $1,000.00 | $1,007.45 | $2.46 | |||||||||||||
Hypothetical (h) | 0.49% | $1,000.00 | $1,022.55 | $2.48 | ||||||||||||||
A1 | Actual | 0.49% | $1,000.00 | $1,007.45 | $2.46 | |||||||||||||
Hypothetical (h) | 0.49% | $1,000.00 | $1,022.55 | $2.48 | ||||||||||||||
B1 | Actual | 1.27% | $1,000.00 | $1,003.58 | $6.36 | |||||||||||||
Hypothetical (h) | 1.27% | $1,000.00 | $1,018.65 | $6.41 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
Notes to Expense Table
Expense ratios include 0.01% of investment related expenses from self-deposited inverse floaters (as described in Note 2 of the Notes to Financial Statements) that are outside of the expense limitation arrangement (See Note 3 of the Notes to Financial Statements).
5
Table of Contents
9/30/15 (unaudited)
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by jurisdiction.
Municipal Bonds - 99.2% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Alabama - 0.7% | ||||||||
Cullman County, AL, Health Care Authority (Cullman Regional Medical Center), “A”, 6.75%, 2/01/29 | $ | 3,550,000 | $ | 3,837,573 | ||||
DCH Health Care Authority, AL, Health Care Facilities Rev., 5%, 6/01/33 | 785,000 | 869,976 | ||||||
Jefferson County, AL, Sewer Rev. Warrants, Capital Appreciation, Senior Lien, “B”, AGM, 0%, 10/01/25 | 95,000 | 62,164 | ||||||
Jefferson County, AL, Sewer Rev. Warrants, Capital Appreciation, Senior Lien, “B”, AGM, 0%, 10/01/26 | 1,175,000 | 733,000 | ||||||
Jefferson County, AL, Sewer Rev. Warrants, Capital Appreciation, Senior Lien, “B”, AGM, 0%, 10/01/29 | 1,655,000 | 838,340 | ||||||
Jefferson County, AL, Sewer Rev. Warrants, Capital Appreciation, Senior Lien, “B”, AGM, 0%, 10/01/34 | 2,370,000 | 828,291 | ||||||
Jefferson County, AL, Sewer Rev. Warrants, Capital Appreciation, Senior Lien, “B”, AGM, 0%, 10/01/35 | 4,495,000 | 1,471,843 | ||||||
Jefferson County, AL, Sewer Rev. Warrants, Subordinate Lien, “D”, 5%, 10/01/15 | 85,000 | 85,009 | ||||||
Jefferson County, AL, Sewer Rev. Warrants, Subordinate Lien, “D”, 5%, 10/01/16 | 185,000 | 191,806 | ||||||
Jefferson County, AL, Sewer Rev. Warrants, Subordinate Lien, “D”, 5%, 10/01/17 | 250,000 | 266,253 | ||||||
Jefferson County, AL, Sewer Rev. Warrants, Subordinate Lien, “D”, 5%, 10/01/18 | 265,000 | 288,180 | ||||||
Jefferson County, AL, Sewer Rev. Warrants, Subordinate Lien, “D”, 5%, 10/01/21 | 295,000 | 327,276 | ||||||
Jefferson County, AL, Sewer Rev. Warrants, Subordinate Lien, “D”, 5%, 10/01/23 | 435,000 | 484,085 | ||||||
Selma, AL, Industrial Development Board Rev., Gulf Opportunity Zone (International Paper Co.), “A”, 5.8%, 5/01/34 | 3,565,000 | 3,968,772 | ||||||
|
| |||||||
$ | 14,252,568 | |||||||
Arizona - 0.3% | ||||||||
Maricopa County, AZ, Pollution Control Rev. (El Paso Electric), “B”, 7.25%, 4/01/40 | $ | 1,710,000 | $ | 1,974,281 | ||||
Phoenix, AZ, Industrial Development Authority Education Rev. (Basis Schools, Inc. Projects), “A”, 5%, 7/01/35 | 470,000 | 475,758 | ||||||
Phoenix, AZ, Industrial Development Authority Education Rev. (Basis Schools, Inc. Projects), “A”, 5%, 7/01/45 | 570,000 | 566,460 | ||||||
Phoenix, AZ, Industrial Development Authority Education Rev. (Legacy Traditional School Projects), 5%, 7/01/35 | 840,000 | 820,361 |
6
Table of Contents
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Arizona - continued | ||||||||
Phoenix, AZ, Industrial Development Authority Education Rev. (Legacy Traditional School Projects), 5%, 7/01/45 | $ | 925,000 | $ | 878,306 | ||||
Yavapai County, AZ, Industrial Development Authority Rev. (Waste Management, Inc.), “A-2”, 1.6%, 3/01/28 (Put Date 3/01/18) | 1,595,000 | 1,594,777 | ||||||
|
| |||||||
$ | 6,309,943 | |||||||
Arkansas - 0.5% | ||||||||
Arkansas Development Finance Authority Hospital Rev. (Washington Regional Medical Center), “A”, 5%, 2/01/35 | $ | 435,000 | $ | 479,279 | ||||
Arkansas Development Finance Authority Hospital Rev. (Washington Regional Medical Center), “C”, 5%, 2/01/33 | 640,000 | 707,277 | ||||||
Arkansas Development Finance Authority, Tobacco Settlement Rev. (Cancer Research Center Project), Capital Appreciation, AMBAC, 0%, 7/01/46 | 4,995,000 | 1,181,218 | ||||||
Arkansas Federal Highway Grant Anticipation & Tax Rev., 5%, 4/01/20 | 3,970,000 | 4,617,507 | ||||||
Little Rock, AR, Hotel & Restaurant Gross Receipts Tax Rev., 5%, 7/01/30 | 1,055,000 | 1,206,709 | ||||||
Pulaski County, AR, Public Facilities Board Healthcare Rev. (Baptist Health), 5%, 12/01/42 | 1,520,000 | 1,646,555 | ||||||
|
| |||||||
$ | 9,838,545 | |||||||
California - 12.6% | ||||||||
Alameda Corridor Transportation Authority, California Rev., “A”, AGM, 5%, 10/01/28 | $ | 985,000 | $ | 1,155,001 | ||||
California Department of Water Resources, Center Valley Project Rev., “AF”, 5%, 12/01/28 (Prerefunded 12/01/18) (u) | 14,200,000 | 16,054,662 | ||||||
California Department of Water Resources, Center Valley Project Rev., “AF”, 5%, 12/01/28 (u) | 9,625,000 | 10,750,933 | ||||||
California Educational Facilities Authority Rev. (Chapman University), 5%, 4/01/31 | 1,550,000 | 1,724,453 | ||||||
California Educational Facilities Authority Rev. (University of San Francisco), 6.125%, 10/01/36 | 925,000 | 1,121,600 | ||||||
California Educational Facilities Authority Rev. (University of Southern California), “A”, 5.25%, 10/01/38 | 4,610,000 | 5,131,898 | ||||||
California Health Facilities Financing Authority Rev. (St. Joseph Health System), “A”, 5.75%, 7/01/39 | 2,580,000 | 2,946,102 | ||||||
California Health Facilities Financing Authority Rev. (Sutter Health), “D”, 5.25%, 8/15/31 | 5,000,000 | 5,818,050 | ||||||
California Housing Finance Agency Rev. (Home Mortgage), “G”, 4.95%, 8/01/23 | 6,180,000 | 6,348,034 | ||||||
California Housing Finance Agency Rev. (Home Mortgage), “G”, 5.5%, 8/01/42 | 470,000 | 483,113 |
7
Table of Contents
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
California - continued | ||||||||
California Housing Finance Agency Rev. (Home Mortgage), ��I”, 4.8%, 8/01/36 | $ | 515,000 | $ | 516,622 | ||||
California Housing Finance Agency Rev. (Home Mortgage), “L”, 5.45%, 8/01/33 | 6,600,000 | 7,090,776 | ||||||
California Housing Finance Agency Rev. (Home Mortgage), “L”, FNMA, 5.5%, 8/01/38 | 675,000 | 686,968 | ||||||
California M-S-R Energy Authority Gas Rev., “A”, 7%, 11/01/34 | 595,000 | 820,886 | ||||||
California M-S-R Energy Authority Gas Rev., “A”, 6.5%, 11/01/39 | 1,810,000 | 2,416,839 | ||||||
California Municipal Finance Authority Rev. (Biola University), 5.8%, 10/01/28 | 1,785,000 | 1,943,669 | ||||||
California Municipal Finance Authority Rev. (University of La Verne), “A”, 6.25%, 6/01/40 | 850,000 | 970,250 | ||||||
California Pollution Control Financing Authority, Solid Waste Disposal Rev. (Republic Services, Inc.), “B”, 5.25%, 6/01/23 (Put Date 12/01/17) | 950,000 | 1,009,717 | ||||||
California Pollution Control Financing Authority, Solid Waste Disposal Rev. (Waste Management, Inc.), “C”, 5.125%, 11/01/23 | 1,665,000 | 1,688,110 | ||||||
California Public Works Board Lease Rev. (Various Capital Projects), “G-1”, 5.75%, 10/01/30 | 2,950,000 | 3,444,686 | ||||||
California Public Works Board Lease Rev. (Various Capital Projects), “I”, 5%, 11/01/18 | 615,000 | 691,426 | ||||||
California Public Works Board Lease Rev. (Various Capital Projects), “I”, 5%, 11/01/38 | 9,180,000 | 10,397,727 | ||||||
California Public Works Board Lease Rev., Department of Corrections and Rehabilitation (Various Correctional Facilities), “A”, 5%, 9/01/33 | 9,250,000 | 10,594,673 | ||||||
California School Finance Authority, School Facility Rev. (Alliance for College-Ready Public Schools Projects), “A”, 4%, 7/01/24 | 560,000 | 569,918 | ||||||
California School Finance Authority, School Facility Rev. (Alliance for College-Ready Public Schools Projects), “A”, 4%, 7/01/25 | 585,000 | 592,529 | ||||||
California School Finance Authority, School Facility Rev. (Alliance for College-Ready Public Schools Projects), “A”, 5%, 7/01/30 | 505,000 | 530,422 | ||||||
California School Finance Authority, School Facility Rev. (Alliance for College-Ready Public Schools Projects), “A”, 5%, 7/01/45 | 1,340,000 | 1,372,120 | ||||||
California Statewide Communities Development Authority Environmental Facilities Rev. (Microgy Holdings Project), 9%, 12/01/38 (a)(d) | 126,224 | 1 | ||||||
California Statewide Communities Development Authority Rev. (American Baptist Homes of the West), 6.25%, 10/01/39 | 1,050,000 | 1,156,974 | ||||||
California Statewide Communities Development Authority Rev. (California Baptist University), “A”, 5.4%, 11/01/27 | 245,000 | 253,933 | ||||||
California Statewide Communities Development Authority Rev. (Enloe Medical Center), CALHF, 5.75%, 8/15/38 | 2,640,000 | 2,901,967 |
8
Table of Contents
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
California - continued | ||||||||
California Statewide Communities Development Authority Rev. (Lancer Educational Student Housing Project), 5.625%, 6/01/33 | $ | 1,460,000 | $ | 1,480,367 | ||||
California Statewide Communities Development Authority Rev. (Lancer Educational Student Housing Project), 7.5%, 6/01/42 | 905,000 | 994,206 | ||||||
California Statewide Communities Development Authority Rev. (Lancer Plaza Project), 5.625%, 11/01/33 | 190,000 | 192,761 | ||||||
California Statewide Communities Development Authority Rev. (Lancer Plaza Project), 5.125%, 11/01/23 | 155,000 | 160,808 | ||||||
California Statewide Communities Development Authority Rev. (Loma Linda University Medical Center), “A”, 5.25%, 12/01/44 | 1,350,000 | 1,399,613 | ||||||
California Statewide Communities Development Authority Rev. (Los Angeles Jewish Home for The Aging - Fountainview at Gonda), “B”, CALHF, 3%, 8/01/21 | 2,020,000 | 2,050,381 | ||||||
California Statewide Communities Development Authority Rev. (Los Angeles Jewish Home for The Aging - Fountainview at Gonda), “C”, CALHF, 2.5%, 8/01/20 | 1,355,000 | 1,371,802 | ||||||
California Statewide Communities Development Authority Rev. (Los Angeles Jewish Home for The Aging - Fountainview at Gonda), “D”, 4.75%, 8/01/20 | 575,000 | 576,788 | ||||||
California Statewide Communities Development Authority Rev. (Student Housing, SUCI East Campus), 6%, 5/15/40 | 1,655,000 | 1,800,441 | ||||||
California Statewide Communities Development Authority School Facility Rev. (Aspire Public Schools), 6.125%, 7/01/46 | 5,025,000 | 5,331,525 | ||||||
Chula Vista, CA, Industrial Development Rev. (San Diego Gas & Electric Co.), “E”, 5.875%, 1/01/34 | 1,840,000 | 2,107,058 | ||||||
Escondido, CA, Union High School District (Election of 2008), Capital Appreciation, “A”, ASSD GTY, 0%, 8/01/30 | 4,495,000 | 2,556,531 | ||||||
Escondido, CA, Union High School District (Election of 2008), Capital Appreciation, “A”, ASSD GTY, 0%, 8/01/31 | 4,015,000 | 2,203,793 | ||||||
Escondido, CA, Union High School District (Election of 2008), Capital Appreciation, “A”, ASSD GTY, 0%, 8/01/33 | 2,785,000 | 1,400,855 | ||||||
Glendale, CA, Redevelopment Agency, Tax Allocation Rev. (Central Glendale Redevelopment Project), 5.5%, 12/01/24 | 2,250,000 | 2,336,243 | ||||||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A”, AGM, 4.55%, 6/01/22 | 3,415,000 | 3,689,771 | ||||||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A”, 5%, 6/01/34 | 3,000,000 | 3,395,250 | ||||||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., Enhanced, “A-1”, AMBAC, 4.6%, 6/01/23 | 995,000 | 1,073,227 | ||||||
Hartnell, CA, Community College District (Election of 2002), Capital Appreciation, “D”, 0%, 8/01/39 | 9,645,000 | 2,066,441 | ||||||
Inland Valley, CA, Development Successor Agency Tax Allocation, “A”, 5%, 9/01/44 | 2,620,000 | 2,878,306 |
9
Table of Contents
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
California - continued | ||||||||
La Verne, CA, COP (Brethren Hillcrest Homes), 5%, 5/15/36 | $ | 640,000 | $ | 677,984 | ||||
Long Beach, CA, Marina Rev. (Alamitos Bay Marina Project), 5%, 5/15/35 | 480,000 | 522,816 | ||||||
Los Angeles County, CA, Regional Financing Authority Rev. (Montecedro Inc. Project), “A”, CALHF, 5%, 11/15/44 | 820,000 | 916,112 | ||||||
Los Angeles County, CA, Regional Financing Authority Rev. (Montecedro Inc. Project), “A”, CALHF, 5%, 11/15/34 | 480,000 | 544,781 | ||||||
Los Angeles County, CA, Regional Financing Authority Rev. (Montecedro Inc. Project), “B-2”, CALHF, 3%, 11/15/20 | 430,000 | 432,129 | ||||||
Los Angeles County, CA, Regional Financing Authority Rev. (Montecedro Inc. Project), “B-3”, CALHF, 2.5%, 11/15/20 | 1,080,000 | 1,084,169 | ||||||
Los Angeles, CA, Department of Airports Rev. (Los Angeles International), “A”, 5%, 5/15/29 | 2,990,000 | 3,445,855 | ||||||
Los Angeles, CA, Municipal Improvement Corp. Lease Rev. (Real Property), “E”, 6%, 9/01/39 | 2,580,000 | 2,980,132 | ||||||
Los Angeles, CA, Unified School District, “D”, 5%, 1/01/34 | 825,000 | 929,330 | ||||||
Madera, CA, Irrigation Financing Authority Water Rev., 6.5%, 1/01/40 | 3,595,000 | 4,402,689 | ||||||
Merced, CA, Union High School District, Capital Appreciation, “A”, ASSD GTY, 0%, 8/01/30 | 580,000 | 318,559 | ||||||
Mt. San Antonio, CA, Community College District, Convertible Capital Appreciation, 0% to 8/1/23, 5.875% to 8/01/28 | 1,860,000 | 1,629,472 | ||||||
Oceanside, CA, Unified School District, Capital Appreciation, ASSD GTY, 0%, 8/01/24 | 2,900,000 | 2,249,240 | ||||||
Oceanside, CA, Unified School District, Capital Appreciation, ASSD GTY, 0%, 8/01/27 | 1,930,000 | 1,302,654 | ||||||
Oceanside, CA, Unified School District, Capital Appreciation, ASSD GTY, 0%, 8/01/29 | 3,915,000 | 2,360,588 | ||||||
Oceanside, CA, Unified School District, Capital Appreciation, ASSD GTY, 0%, 8/01/30 | 4,335,000 | 2,490,804 | ||||||
Oxnard, CA, Financing Authority, Wastewater Rev., AGM, 5%, 6/01/30 | 1,640,000 | 1,865,877 | ||||||
Palomar Pomerado Health Care District, CA, COP, 6.75%, 11/01/39 | 2,210,000 | 2,449,210 | ||||||
Port of Oakland, CA, Rev., “P”, 5%, 5/01/33 | 11,790,000 | 13,011,444 | ||||||
Riverside County, CA, Transportation Commission Sales Tax Rev. (Limited Tax), “A”, 5.25%, 6/01/39 | 4,655,000 | 5,395,285 | ||||||
Sacramento, CA, Municipal Utility District, “X”, 5%, 8/15/28 | 3,270,000 | 3,844,441 | ||||||
San Diego County, CA, Regional Airport Authority Rev., “A”, 5%, 7/01/40 | 9,315,000 | 10,393,025 | ||||||
San Diego County, CA, Regional Airport Authority Rev., “B”, 5%, 7/01/24 | 500,000 | 589,710 | ||||||
San Diego County, CA, Regional Airport Authority Rev., “B”, 5%, 7/01/25 | 1,500,000 | 1,757,580 |
10
Table of Contents
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
California - continued | ||||||||
San Francisco, CA, Bay Area Toll Authority, Bridge Rev., “C”, 1.875%, 4/01/47 (Put Date 4/01/19) | $ | 3,485,000 | $ | 3,545,918 | ||||
San Francisco, CA, City & County Airports Commission, International Airport Rev., “A”, 5%, 5/01/28 | 6,000,000 | 6,893,880 | ||||||
San Francisco, CA, City & County Redevelopment Successor Agency, Tax Allocation (Mission Bay South Public Improvements), “A”, 5%, 8/01/43 | 340,000 | 370,631 | ||||||
San Jose, CA, Airport Rev., “A-2”, 5.25%, 3/01/34 | 7,570,000 | 8,592,556 | ||||||
San Jose, CA, Airport Rev., “C”, 5%, 3/01/30 | 1,115,000 | 1,281,592 | ||||||
San Mateo County, CA, Community College District (Election of 2005), Capital Appreciation, “A”, NATL, 0%, 9/01/26 | 5,100,000 | 3,778,029 | ||||||
State of California, 5%, 4/01/24 | 4,365,000 | 5,216,350 | ||||||
State of California, 5.25%, 10/01/28 | 2,965,000 | 3,494,668 | ||||||
State of California, 6.5%, 4/01/33 | 4,000,000 | 4,747,800 | ||||||
State of California, 6%, 11/01/39 | 3,000,000 | 3,572,490 | ||||||
Upland, CA, COP (San Antonio Community Hospital), 6.375%, 1/01/32 | 2,075,000 | 2,399,779 | ||||||
Upland, CA, COP (San Antonio Community Hospital), 6.5%, 1/01/41 | 915,000 | 1,055,571 | ||||||
West Contra Costa, CA, Unified School District (Election of 2005), Capital Appreciation, “C”, ASSD GTY, 0%, 8/01/29 | 3,440,000 | 2,037,890 | ||||||
Whittier, CA, Union High School District, Capital Appreciation, 0%, 8/01/34 | 2,005,000 | 710,191 | ||||||
|
| |||||||
$ | 253,541,457 | |||||||
Colorado - 3.9% | ||||||||
Colorado Educational & Cultural Facilities Authority Rev. (Academy of Charter Schools Project), 5.625%, 5/01/40 | $ | 1,815,000 | $ | 1,981,290 | ||||
Colorado Educational & Cultural Facilities Authority Rev. (Liberty Common Project), 5%, 1/15/29 | 195,000 | 216,031 | ||||||
Colorado Educational & Cultural Facilities Authority Rev. (Liberty Common Project), 5%, 1/15/39 | 740,000 | 794,982 | ||||||
Colorado Educational & Cultural Facilities Authority Rev. (Liberty Common Project), 5%, 1/15/44 | 605,000 | 646,418 | ||||||
Colorado Educational & Cultural Facilities Authority Rev. (Montessori Charter School Project), 5%, 7/15/37 | 545,000 | 580,774 | ||||||
Colorado Educational & Cultural Facilities Authority Rev. (Peak to Peak Charter School Project), 5%, 8/15/30 | 490,000 | 542,092 | ||||||
Colorado Educational & Cultural Facilities Authority Rev. (Peak to Peak Charter School Project), 5%, 8/15/34 | 495,000 | 546,039 | ||||||
Colorado Educational & Cultural Facilities Authority Rev. (Pinnacle Charter School Building Corp.), 5%, 6/01/29 | 700,000 | 777,014 | ||||||
Colorado Educational & Cultural Facilities Authority Rev. (The Classical Academy Project), 5%, 12/01/31 | 1,725,000 | 1,936,451 |
11
Table of Contents
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Colorado - continued | ||||||||
Colorado Educational & Cultural Facilities Authority Rev. (The Classical Academy Project), “A”, 5%, 12/01/38 | $ | 1,020,000 | $ | 1,111,494 | ||||
Colorado Educational & Cultural Facilities Authority Rev. (Twin Peaks Charter Academy Project), 5%, 11/15/31 | 1,855,000 | 2,081,458 | ||||||
Colorado Educational & Cultural Facilities Authority Rev. (Twin Peaks Charter Academy), 7%, 11/15/38 (Prerefunded 11/15/18) | 4,330,000 | 5,128,062 | ||||||
Colorado Health Facilities Authority Rev. (Covenant Retirement Communities, Inc. Project), “A”, 5%, 12/01/35 | 1,985,000 | 2,116,526 | ||||||
Colorado Health Facilities Authority Rev. (Evangelical Lutheran Good Samaritan Society), 5.625%, 6/01/43 | 1,195,000 | 1,312,994 | ||||||
Colorado Health Facilities Authority Rev. (SCL Health System), “A”, 5%, 1/01/44 | 4,620,000 | 5,098,817 | ||||||
Colorado Housing & Finance Authority, Solid Waste Rev. (Waste Management, Inc.), 5.7%, 7/01/18 | 4,840,000 | 5,418,138 | ||||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6.5%, 1/15/30 | 6,150,000 | 7,145,439 | ||||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6%, 1/15/34 | 5,000,000 | 5,643,150 | ||||||
Colorado State University Board of Governors, System Enterprise Rev., “B”, 5%, 3/01/25 | 3,000,000 | 3,675,420 | ||||||
Denver, CO, City & County Airport Rev. (United Airlines), 5.25%, 10/01/32 | 3,975,000 | 4,101,803 | ||||||
Denver, CO, City & County Airport Rev. (United Airlines), 5.75%, 10/01/32 | 615,000 | 640,375 | ||||||
Denver, CO, City & County Airport Systems Rev., “A”, 5%, 11/15/28 | 1,930,000 | 2,167,680 | ||||||
Denver, CO, City & County School District No. 1, 5%, 12/01/24 | 10,000,000 | 11,763,400 | ||||||
Denver, CO, Health & Hospital Authority Rev., “A”, 5.25%, 12/01/45 | 1,210,000 | 1,307,441 | ||||||
Denver, CO, Single Family Mortgage Rev., GNMA, 7.3%, 11/01/31 | 5,000 | 5,014 | ||||||
Northwest Parkway, CO, Public Highway Authority Rev., “C”, ETM, AGM, 5.35%, 6/15/16 | 1,000,000 | 1,035,480 | ||||||
Public Authority for Colorado Energy Natural Gas Purchase Rev., 6.25%, 11/15/28 | 1,215,000 | 1,517,462 | ||||||
Public Authority for Colorado Energy Natural Gas Purchase Rev., 6.5%, 11/15/38 | 3,725,000 | 4,904,894 | ||||||
University of Colorado, Enterprise Rev., 5%, 6/01/29 | 4,220,000 | 4,784,847 | ||||||
|
| |||||||
$ | 78,980,985 | |||||||
Connecticut - 1.4% | ||||||||
Connecticut Housing Finance Authority Rev., (Housing Mortgage Finance Program), “B-2”, 4%, 11/15/32 | $ | 2,640,000 | $ | 2,827,493 |
12
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Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Connecticut - continued | ||||||||
Connecticut Housing Finance Authority Rev., (Housing Mortgage Finance Program), “C-1”, 3.5%, 11/15/45 | $ | 3,625,000 | $ | 3,865,193 | ||||
Connecticut Housing Finance Authority Rev., (Housing Mortgage Finance Program), “D-1”, 4%, 11/15/44 | 3,355,000 | 3,594,916 | ||||||
Mohegan Tribal Finance Authority Economic Development Bonds, 7%, 2/01/45 | 2,320,000 | 2,058,698 | ||||||
State of Connecticut, Special Tax Obligation Rev., “A”, 5%, 12/01/28 | 4,595,000 | 5,317,058 | ||||||
State of Connecticut, Special Tax Obligation Rev., “A”, 5%, 12/01/29 | 4,595,000 | 5,320,551 | ||||||
State of Connecticut, Special Tax Obligation Rev., “A”, 5%, 12/01/30 | 4,615,000 | 5,341,447 | ||||||
|
| |||||||
$ | 28,325,356 | |||||||
Delaware - 0.0% | ||||||||
Delaware Housing Authority Rev. (Single Family), “C”, 6.25%, 7/01/37 | $ | 40,000 | $ | 40,363 | ||||
District of Columbia - 1.0% | ||||||||
District of Columbia Rev. (Kipp, D.C. Charter School), “A”, 6%, 7/01/43 | $ | 1,450,000 | $ | 1,657,147 | ||||
District of Columbia Rev. (Kipp, D.C. Charter School), “A”, 6%, 7/01/33 | 560,000 | 644,050 | ||||||
District of Columbia Rev. (Methodist Home of the District of Columbia Issue), 4.5%, 1/01/25 | 265,000 | 265,779 | ||||||
District of Columbia Rev. (Methodist Home of the District of Columbia Issue), “A”, 5.125%, 1/01/35 | 230,000 | 228,811 | ||||||
District of Columbia Rev. (Methodist Home of the District of Columbia Issue), “A”, 5.25%, 1/01/39 | 150,000 | 149,667 | ||||||
District of Columbia Student Dormitory Rev. (Provident Group - Howard Properties LLC), 5%, 10/01/30 | 3,235,000 | 3,238,785 | ||||||
District of Columbia Student Dormitory Rev. (Provident Group - Howard Properties LLC), 5%, 10/01/35 | 4,080,000 | 4,019,167 | ||||||
District of Columbia University Rev. (Georgetown University), Convertible Capital Appreciation, 0% to 4/01/18, 5% to 4/01/40 | 11,570,000 | 10,811,124 | ||||||
District of Columbia, Tobacco Settlement, 6.25%, 5/15/24 | 175,000 | 174,998 | ||||||
|
| |||||||
$ | 21,189,528 | |||||||
Florida - 5.4% | ||||||||
Arborwood Community Development District, FL, Capital Improvement Rev., “A-1”, Convertible Capital Appreciation, 0% to 5/1/16, 6.9% to 5/01/36 | $ | 20,000 | $ | 21,465 | ||||
Bay County, FL, Housing Finance Authority, Multi-Family Rev. (Andrews Place II Apartments), AGM, 5%, 10/01/35 | 1,035,000 | 1,035,756 |
13
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Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Florida - continued | ||||||||
Bellalago, FL, Educational Facilities Benefit District (Osceola County) Capital Improvement Refunding Rev., 4.375%, 5/01/30 | $ | 1,045,000 | $ | 1,086,696 | ||||
Bellalago, FL, Educational Facilities Benefit District (Osceola County) Capital Improvement Refunding Rev., 4.5%, 5/01/33 | 485,000 | 504,609 | ||||||
Bellalago, FL, Educational Facilities Benefit District (Osceola County) Capital Improvement Refunding Rev., 4.6%, 5/01/34 | 1,405,000 | 1,473,002 | ||||||
Capital Region Community Development District, FL, Capital Improvement Rev., “A”, 7%, 5/01/39 | 860,000 | 870,526 | ||||||
Capital Trust Agency Rev. (Aero Miami FX LLC), “A”, 5.35%, 7/01/29 | 3,535,000 | 3,863,366 | ||||||
Citizens Property Insurance Corp., “A-1”, 5.25%, 6/01/17 | 750,000 | 805,253 | ||||||
Collier County, FL, Educational Facilities Authority Rev. (Ave Maria University, Inc. Project), “A”, 6.125%, 6/01/43 | 4,300,000 | 4,734,042 | ||||||
Collier County, FL, Industrial Development Authority Continuing Care Community Rev. (The Arlington of Naples Project), “A”, 6.25%, 5/15/35 | 100,000 | 100,861 | ||||||
Collier County, FL, Industrial Development Authority Continuing Care Community Rev. (The Arlington of Naples Project), “A”, 6.5%, 5/15/49 | 180,000 | 181,532 | ||||||
Collier County, FL, Industrial Development Authority Continuing Care Community Rev. (The Arlington of Naples Project), “B”, 5.25%, 5/15/22 | 520,000 | 520,645 | ||||||
Collier County, FL, Industrial Development Authority Continuing Care Community Rev. (The Arlington of Naples Project), “B-1”, 6.875%, 5/15/21 | 820,000 | 821,640 | ||||||
Daytona Beach, FL, Halifax Hospital Medical Center Rev., 5%, 6/01/29 | 1,350,000 | 1,493,816 | ||||||
Daytona Beach, FL, Halifax Hospital Medical Center Rev., 5%, 6/01/30 | 1,420,000 | 1,559,146 | ||||||
Daytona Beach, FL, Halifax Hospital Medical Center Rev., 5%, 6/01/26 | 1,510,000 | 1,725,915 | ||||||
Florida Board of Education, Capital Outlay, “E”, 5%, 6/01/23 | 250,000 | 285,433 | ||||||
Florida Board of Education, Lottery Rev., “A”, 5%, 7/01/20 | 7,855,000 | 9,150,839 | ||||||
Florida Citizens Property Insurance Corp., “A-1”, 5%, 6/01/19 | 505,000 | 569,115 | ||||||
Florida Development Finance Corp. Educational Facilities Rev. (Renaissance Charter School), “A”, 6%, 9/15/30 | 2,425,000 | 2,532,428 | ||||||
Florida Development Finance Corp. Educational Facilities Rev. (Renaissance Charter School), “A”, 6%, 9/15/40 | 5,130,000 | 5,316,270 | ||||||
Florida Housing Finance Corp, Homeowner Mortgage Rev. (Special Program), “A”, FHLMC, 3.5%, 7/01/46 | 1,895,000 | 2,017,171 | ||||||
Florida Housing Finance Corp, Homeowner Mortgage Rev. (Special Program), “B”, FHLMC, 3%, 7/01/45 | 3,650,000 | 3,806,987 | ||||||
Florida Housing Finance Corp. Rev. (Homeowner Mortgage), “1”, GNMA, 4.8%, 7/01/31 | 335,000 | 336,092 |
14
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Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Florida - continued | ||||||||
Florida Municipal Power Agency Rev., “A”, 5%, 10/01/31 | $ | 1,000,000 | $ | 1,090,290 | ||||
Florida Municipal Power Agency Rev., All Requirements, “A”, 6.25%, 10/01/31 | 400,000 | 465,836 | ||||||
Florida State University Board of Governors, System Improvement Rev., 6.25%, 7/01/30 | 2,685,000 | 3,055,369 | ||||||
Heritage Harbour North Community Development District, FL, Capital Improvement Rev., 6.375%, 5/01/38 | 775,000 | 809,581 | ||||||
Hillsborough County, FL, Industrial Development Authority Rev. (University Community Hospital), “A”, 5.625%, 8/15/29 (Prerefunded 8/15/19) | 300,000 | 340,188 | ||||||
Hillsborough County, FL, Industrial Development Authority Rev. (University Community Hospital), ETM, NATL, 6.5%, 8/15/19 | 825,000 | 926,962 | ||||||
Hillsborough County, FL, Industrial Development Authority, Pollution Control Rev. (Tampa Electric Co.), “A”, 5.65%, 5/15/18 | 500,000 | 556,230 | ||||||
Homestead 50, FL, Community Development District, Special Assessment, “A”, 6%, 5/01/37 | 1,485,000 | 1,466,690 | ||||||
Lakeland, FL, Hospital Rev. (Lakeland Regional Health Systems), 5%, 11/15/33 | 2,225,000 | 2,423,804 | ||||||
Lakeland, FL, Hospital Rev. (Lakeland Regional Health Systems), 5%, 11/15/34 | 1,935,000 | 2,107,892 | ||||||
Lakewood Ranch Stewardship District, FL, Special Assessment Rev. (Lakewood Centre North Project), 4.25%, 5/01/25 | 425,000 | 428,791 | ||||||
Lakewood Ranch Stewardship District, FL, Special Assessment Rev. (Lakewood Centre North Project), 4.875%, 5/01/35 | 135,000 | 136,189 | ||||||
Lakewood Ranch Stewardship District, FL, Special Assessment Rev. (Lakewood Centre North Project), 4.875%, 5/01/45 | 205,000 | 205,271 | ||||||
Main Street Community Development District, FL, “A”, 6.8%, 5/01/38 | 500,000 | 504,210 | ||||||
Marshall Creek Community Development District, FL, Capital Improvement and Special Assessment, “A”, 3.5%, 5/01/20 | 2,445,000 | 2,447,201 | ||||||
Miami-Dade County, FL, Aviation Rev., “B”, AGM, 5%, 10/01/35 | 5,885,000 | 6,616,270 | ||||||
Miami-Dade County, FL, Educational Facilities Authority Rev. (University of Miami), “A”, 5.75%, 4/01/28 | 1,875,000 | 1,919,419 | ||||||
Miami-Dade County, FL, Health Facilities Authority Hospital Rev. (Miami Children’s Hospital), “A”, 6.125%, 8/01/42 | 2,240,000 | 2,575,686 | ||||||
Miami-Dade County, FL, School Board, COP, “B”, ASSD GTY, 5%, 5/01/33 | 500,000 | 539,680 | ||||||
Miami-Dade County, FL, Special Obligation, Capital Appreciation, “A”, NATL, 0%, 10/01/32 | 2,000,000 | 835,560 | ||||||
Miami-Dade County, FL, Water & Sewer Rev., AGM, 5%, 10/01/39 | 1,000,000 | 1,131,320 | ||||||
Mid-Bay Bridge Authority Rev., FL, Springing Lien, “A”, 7.25%, 10/01/40 (Prerefunded 10/01/21) | 6,920,000 | 9,098,278 |
15
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Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Florida - continued | ||||||||
Middle Village Community Development District, FL, Special Assessment, “A”, 5.8%, 5/01/22 | $ | 50,000 | $ | 43,707 | ||||
Midtown Miami, FL, Community Development District Special Assessment (Infrastructure Project), “B”, 5%, 5/01/29 | 280,000 | 296,464 | ||||||
Midtown Miami, FL, Community Development District Special Assessment (Infrastructure Project), “B”, 5%, 5/01/37 | 135,000 | 141,592 | ||||||
Midtown Miami, FL, Community Development District Special Assessment (Parking Garage Project), “A”, 5%, 5/01/37 | 230,000 | 241,231 | ||||||
Orange County, FL, Health Facilities Authority Hospital Rev. (Orlando Regional Healthcare), “C”, 5.25%, 10/01/35 | 1,000,000 | 1,073,080 | ||||||
Palm Beach County, FL, Health Facilities Rev. (Sinai Residences of Boca Raton Project), 7.5%, 6/01/49 | 430,000 | 496,211 | ||||||
Palm Beach County, FL, Solid Waste Authority Rev. Improvement, BHAC, 5%, 10/01/27 | 295,000 | 333,630 | ||||||
Parkway Center Community Development District, FL, Special Assessment, “B”, 7%, 5/01/23 | 425,000 | 426,645 | ||||||
Pinellas County, FL, Sewer Rev., AGM, 5%, 10/01/32 | 330,000 | 331,178 | ||||||
Seminole Tribe, FL, Special Obligation Rev., “A”, 5.75%, 10/01/22 (n) | 2,850,000 | 3,028,296 | ||||||
Seminole Tribe, FL, Special Obligation Rev., “A”, 5.5%, 10/01/24 (n) | 4,275,000 | 4,518,675 | ||||||
South Broward, FL, Hospital District Rev., 5%, 5/01/36 | 500,000 | 528,270 | ||||||
South Lake County, FL, Hospital District Rev. (South Lake Hospital), “A”, 6%, 4/01/29 | 1,025,000 | 1,161,920 | ||||||
St. John’s County, FL, Industrial Development Authority Rev. (Bayview Project), “A”, 5.2%, 10/01/27 | 150,000 | 139,557 | ||||||
St. John’s County, FL, Industrial Development Authority Rev. (Presbyterian Retirement), “A”, 6%, 8/01/45 | 6,795,000 | 7,553,934 | ||||||
Sterling Hill Community Development District, FL, Capital Improvement Rev., “B”, 5.5%, 11/01/10 (d) | 55,000 | 38,496 | ||||||
Sumter County, FL, Industrial Development Authority Hospital Rev. (Central Florida Health Alliance Projects), “A”, 5%, 7/01/26 | 245,000 | 277,137 | ||||||
Sumter County, FL, Industrial Development Authority Hospital Rev. (Central Florida Health Alliance Projects), “A”, 5%, 7/01/29 | 225,000 | 250,020 | ||||||
Sumter County, FL, Industrial Development Authority Hospital Rev. (Central Florida Health Alliance Projects), “A”, 5.125%, 7/01/34 | 485,000 | 533,374 | ||||||
Sumter County, FL, Industrial Development Authority Hospital Rev. (Central Florida Health Alliance Projects), “A”, 5.25%, 7/01/44 | 1,455,000 | 1,598,841 | ||||||
Tuscany Reserve Community Development District, FL, Special Assessment, “B”, 5.25%, 5/01/16 | 215,000 | 216,720 |
16
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Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Florida - continued | ||||||||
Watergrass Community Development District, FL, Special Assessment, “B”, 6.96%, 11/01/17 | $ | 10,000 | $ | 9,968 | ||||
|
| |||||||
$ | 107,732,268 | |||||||
Georgia - 3.9% | ||||||||
Americus and Sumter County, GA, Hospital Authority Rev. (Magnolia Manor Obligated Group), “A”, 6.25%, 5/15/33 | $ | 965,000 | $ | 1,059,213 | ||||
Americus and Sumter County, GA, Hospital Authority Rev. (Magnolia Manor Obligated Group), “A”, 6.375%, 5/15/43 | 965,000 | 1,054,272 | ||||||
Atlanta, GA, Airport Rev., “B”, 5%, 1/01/25 | 1,415,000 | 1,646,126 | ||||||
Atlanta, GA, Airport Rev., “B”, 5%, 1/01/26 | 800,000 | 929,656 | ||||||
Atlanta, GA, Water & Wastewater Rev., “A”, 6%, 11/01/22 | 2,770,000 | 3,312,837 | ||||||
Clayton County, GA, Development Authority Special Facilities Rev. (Delta Airlines, Inc.), “A”, 8.75%, 6/01/29 | 1,295,000 | 1,589,820 | ||||||
Cobb County, GA, Development Authority Student Housing Rev. (Kennesaw State University Real Estate Foundations), “C”, 5%, 7/15/30 | 650,000 | 708,247 | ||||||
Cobb County, GA, Development Authority Student Housing Rev. (Kennesaw State University Real Estate Foundations), “C”, 5%, 7/15/33 | 1,140,000 | 1,230,584 | ||||||
DeKalb County, GA, Hospital Authority Rev. (DeKalb Medical Center, Inc.), 6.125%, 9/01/40 | 4,850,000 | 5,266,082 | ||||||
DeKalb County, GA, Water & Sewer Rev., “A”, 5.25%, 10/01/28 | 5,285,000 | 6,169,022 | ||||||
DeKalb County, GA, Water & Sewer Rev., “A”, 5.25%, 10/01/29 | 1,415,000 | 1,649,310 | ||||||
DeKalb County, GA, Water & Sewer Rev., “A”, 5.25%, 10/01/30 | 4,345,000 | 5,064,489 | ||||||
DeKalb County, GA, Water & Sewer Rev., “A”, 5.25%, 10/01/31 | 235,000 | 273,914 | ||||||
DeKalb County, GA, Water & Sewer Rev., “A”, 5.25%, 10/01/41 | 3,910,000 | 4,494,780 | ||||||
Fulton County, GA, Water & Sewer Rev., 5%, 1/01/26 | 3,680,000 | 4,202,118 | ||||||
Fulton County, GA, Water & Sewer Rev., 5%, 1/01/27 | 2,285,000 | 2,593,384 | ||||||
Georgia Housing & Finance Authority Rev., Single Family Mortgage, “A”, 3%, 6/01/43 | 1,180,000 | 1,196,508 | ||||||
Georgia Housing & Finance Authority Rev., Single Family Mortgage, “A”, 3.5%, 6/01/45 | 2,545,000 | 2,711,214 | ||||||
Georgia Housing & Finance Authority Rev., Single Family Mortgage, “A-1”, 4%, 6/01/44 | 2,555,000 | 2,746,932 | ||||||
Georgia Main Street Natural Gas, Inc., Gas Project Rev., “A”, 5%, 3/15/22 | 4,545,000 | 5,215,797 | ||||||
Georgia Main Street Natural Gas, Inc., Gas Project Rev., “A”, 5.5%, 9/15/26 | 845,000 | 1,001,942 | ||||||
Georgia Main Street Natural Gas, Inc., Gas Project Rev., “A”, 5.5%, 9/15/28 | 1,740,000 | 2,069,974 | ||||||
Georgia Municipal Electric Authority Power Rev., NATL, 6.375%, 1/01/16 | 1,010,000 | 1,024,302 |
17
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Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Georgia - continued | ||||||||
Georgia Municipal Electric Authority Power Rev., AMBAC, 6.5%, 1/01/17 | $ | 2,070,000 | $ | 2,139,469 | ||||
Georgia Municipal Electric Authority Power Rev., NATL, 6.5%, 1/01/20 | 2,645,000 | 2,906,167 | ||||||
Georgia Municipal Electric Authority Power Rev., “GG”, 5%, 1/01/26 | 3,065,000 | 3,594,693 | ||||||
Georgia Municipal Electric Authority Power Rev., ETM, AMBAC, 6.5%, 1/01/17 | 80,000 | 81,283 | ||||||
Glynn-Brunswick, GA, Memorial Hospital Authority Rev., 5.625%, 8/01/34 (Prerefunded 8/01/18) | 1,190,000 | 1,348,151 | ||||||
Glynn-Brunswick, GA, Memorial Hospital Authority Rev., Unrefunded Balance, 5.625%, 8/01/34 | 130,000 | 142,098 | ||||||
Hall County and Gainesville, GA, Hospital Authority Rev. (Northeast Georgia Health System, Inc.), “A”, 5.5%, 8/15/54 | 4,215,000 | 4,869,042 | ||||||
Marietta, GA, Development Facilities Authority Rev. (Life University), 7%, 6/15/30 | 540,000 | 568,242 | ||||||
Marietta, GA, Development Facilities Authority Rev. (Life University), 7%, 6/15/39 | 645,000 | 674,838 | ||||||
Metropolitan Atlanta, GA, Rapid Transit Authority Rev., 6.25%, 7/01/18 | 1,995,000 | 2,173,313 | ||||||
Rockdale County, GA, Development Authority Project Rev. (Visy Paper Project), “A”, 6.125%, 1/01/34 | 2,055,000 | 2,121,192 | ||||||
|
| |||||||
$ | 77,829,011 | |||||||
Guam - 0.1% | ||||||||
Guam Government, “A”, 7%, 11/15/39 | $ | 910,000 | $ | 1,123,441 | ||||
Guam International Airport Authority Rev., “C”, 5%, 10/01/16 | 360,000 | 373,025 | ||||||
Guam International Airport Authority Rev., “C”, 5%, 10/01/17 | 600,000 | 640,728 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5.25%, 7/01/20 | 130,000 | 148,365 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5.25%, 7/01/21 | 370,000 | 425,914 | ||||||
|
| |||||||
$ | 2,711,473 | |||||||
Hawaii - 1.6% | ||||||||
Hawaii Housing & Community Development Corp., HI, Rental Housing System Rev., “A”, 4.65%, 1/01/29 | $ | 7,795,000 | $ | 7,852,449 | ||||
Hawaii Housing & Community Development Corp., HI, Rental Housing System Rev., “A”, 4.75%, 1/01/33 | 9,390,000 | 9,461,646 | ||||||
Hawaii Department of Budget & Finance, Special Purpose Rev. (15 Craigside Project), “A”, 8.75%, 11/15/29 | 375,000 | 469,046 | ||||||
Hawaii Department of Budget & Finance, Special Purpose Rev. (15 Craigside Project), “A”, 9%, 11/15/44 | 1,100,000 | 1,375,979 |
18
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Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Hawaii - continued | ||||||||
Hawaii Department of Budget & Finance, Special Purpose Rev. (Hawaiian Electric Co. & Subsidiary), 6.5%, 7/01/39 | $ | 3,655,000 | $ | 4,153,652 | ||||
State of Hawaii, “DZ”, 5%, 12/01/31 | 2,230,000 | 2,583,254 | ||||||
State of Hawaii, Highway Rev., “A”, 5%, 1/01/30 | 3,695,000 | 4,180,782 | ||||||
State of Hawaii, Highway Rev., “A”, 5%, 1/01/31 | 1,380,000 | 1,555,508 | ||||||
State of Hawaii, Highway Rev., “A”, 5%, 1/01/32 | 920,000 | 1,033,638 | ||||||
|
| |||||||
$ | 32,665,954 | |||||||
Idaho - 0.0% | ||||||||
Idaho Health Facilities Authority Rev. (The Terraces of Boise Project), “B3”, 5.25%, 10/01/20 | $ | 450,000 | $ | 453,042 | ||||
Illinois - 7.4% | ||||||||
Chicago, IL (Modern Schools Program), “G”, AMBAC, 5%, 12/01/23 | $ | 580,000 | $ | 585,011 | ||||
Chicago, IL (Modern Schools Program), “H”, AMBAC, 5%, 12/01/21 | 1,030,000 | 1,042,422 | ||||||
Chicago, IL, “A”, AGM, 5%, 1/01/22 | 490,000 | 491,867 | ||||||
Chicago, IL, “A”, AGM, 5%, 1/01/22 | 4,710,000 | 4,745,137 | ||||||
Chicago, IL, “A”, AGM, 5%, 1/01/23 | 3,015,000 | 3,034,778 | ||||||
Chicago, IL, “A”, AGM, 5%, 1/01/25 | 430,000 | 432,842 | ||||||
Chicago, IL, “A”, AGM, 5%, 1/01/27 | 205,000 | 207,044 | ||||||
Chicago, IL, “A”, AGM, 4.75%, 1/01/30 | 570,000 | 570,120 | ||||||
Chicago, IL, “A”, AGM, 5%, 1/01/34 | 2,000,000 | 2,001,860 | ||||||
Chicago, IL, “A”, AGM, 5%, 1/01/37 | 3,430,000 | 3,431,784 | ||||||
Chicago, IL, “B”, AGM, 5%, 1/01/23 | 520,000 | 525,502 | ||||||
Chicago, IL, “B”, AGM, 5%, 1/01/17 | 1,755,000 | 1,761,687 | ||||||
Chicago, IL, Board of Education, AGM, 5%, 12/01/35 | 3,955,000 | 3,963,622 | ||||||
Chicago, IL, Board of Education, “B”, AMBAC, 5%, 12/01/20 | 3,150,000 | 3,145,527 | ||||||
Chicago, IL, Greater Chicago Metropolitan Water Reclamation District, “C”, 5%, 12/01/29 | 9,145,000 | 10,274,133 | ||||||
Chicago, IL, O’Hare International Airport Rev., Customer Facility Charge, AGM, 5.25%, 1/01/32 | 945,000 | 1,066,848 | ||||||
Chicago, IL, O’Hare International Airport Rev., Customer Facility Charge, AGM, 5.25%, 1/01/33 | 470,000 | 530,278 | ||||||
Chicago, IL, O’Hare International Airport Rev., Customer Facility Charge, AGM, 5.5%, 1/01/43 | 1,890,000 | 2,116,044 | ||||||
Chicago, IL, O’Hare International Airport Rev., Third Lien, “A”, 5.625%, 1/01/35 | 7,125,000 | 8,169,026 | ||||||
Chicago, IL, Single Family Mortgage Rev., “C”, GNMA, 5.5%, 6/01/38 | 135,000 | 136,067 | ||||||
Chicago, IL, Single Family Mortgage Rev., “C”, GNMA, 5.75%, 12/01/42 | 105,000 | 105,982 |
19
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Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Illinois - continued | ||||||||
Chicago, IL, Transit Authority Sales Tax Receipts Rev., 5.25%, 12/01/29 | $ | 1,755,000 | $ | 1,901,718 | ||||
Chicago, IL, Transit Authority Sales Tax Receipts Rev., 5.25%, 12/01/31 | 655,000 | 703,405 | ||||||
Chicago, IL, Transit Authority Sales Tax Receipts Rev., 5.25%, 12/01/40 | 4,685,000 | 4,947,032 | ||||||
Illinois Finance Authority Rev. (Christian Homes), 5.5%, 5/15/23 | 2,125,000 | 2,127,274 | ||||||
Illinois Finance Authority Rev. (Franciscan Communities, Inc.), “A”, 4.75%, 5/15/33 | 2,145,000 | 2,175,030 | ||||||
Illinois Finance Authority Rev. (Franciscan Communities, Inc.), “A”, 5.5%, 5/15/37 | 3,285,000 | 3,390,908 | ||||||
Illinois Finance Authority Rev. (Franciscan Communities, Inc.), “A”, 5.125%, 5/15/43 | 1,500,000 | 1,524,030 | ||||||
Illinois Finance Authority Rev. (KishHealth Systems Obligated Group), 5.75%, 10/01/28 | 2,990,000 | 3,320,754 | ||||||
Illinois Finance Authority Rev. (OSF Healthcare), “A”, 7%, 11/15/29 (Prerefunded 5/15/19) | 2,975,000 | �� | 3,599,839 | |||||
Illinois Finance Authority Rev. (OSF Healthcare), “A”, 7.125%, 11/15/37 (Prerefunded 5/15/19) | 2,445,000 | 2,969,355 | ||||||
Illinois Finance Authority Rev. (Presence Health Obligated Group), 6.125%, 5/15/25 (Prerefunded 5/15/19) | 205,000 | 241,455 | ||||||
Illinois Finance Authority Rev. (Presence Health Obligated Group), Unrefunded, 6.125%, 5/15/25 | 6,695,000 | 7,487,487 | ||||||
Illinois Finance Authority Rev. (Provena Health), “A”, 7.75%, 8/15/34 | 3,685,000 | 4,465,004 | ||||||
Illinois Finance Authority Rev. (Rehabilitation Institute of Chicago), “A”, 6%, 7/01/43 | 6,315,000 | 7,397,202 | ||||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 6.875%, 8/15/38 (Prerefunded 8/15/19) | 1,500,000 | 1,829,010 | ||||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 7%, 8/15/44 (Prerefunded 8/15/19) | 2,455,000 | 3,005,092 | ||||||
Illinois Finance Authority Rev. (Smith Village), “A”, 6.125%, 11/15/25 | 1,105,000 | 1,115,254 | ||||||
Illinois Finance Authority Rev. (Smith Village), “A”, 6.25%, 11/15/35 | 1,945,000 | 1,954,453 | ||||||
Illinois Finance Authority Student Housing Rev. (Illinois State University), 6.75%, 4/01/31 | 2,730,000 | 3,110,535 | ||||||
Illinois Finance Authority Student Housing Rev. (Northern Illinois University Project), 6.625%, 10/01/31 | 4,210,000 | 4,816,324 | ||||||
Illinois Railsplitter Tobacco Settlement Authority, 5.5%, 6/01/23 | 4,455,000 | 5,163,434 | ||||||
Illinois Railsplitter Tobacco Settlement Authority, 6.25%, 6/01/24 | 2,610,000 | 2,710,616 | ||||||
Illinois Railsplitter Tobacco Settlement Authority, 6%, 6/01/28 | 8,750,000 | 10,333,313 | ||||||
Illinois Sales Tax Rev., “P”, ETM, 6.5%, 6/15/22 | 4,120,000 | 4,765,851 | ||||||
Illinois Toll Highway Authority Rev., “A”, 5%, 12/01/22 | 5,000,000 | 5,957,500 |
20
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Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Illinois - continued | ||||||||
Illinois Toll Highway Authority Rev., “B”, 5.5%, 1/01/33 | $ | 5,645,000 | $ | 6,140,575 | ||||
Romeoville, IL, Rev. (Lewis University Project), “A”, 5%, 10/01/42 | 1,690,000 | 1,822,513 | ||||||
State of Illinois, NATL, 5%, 1/01/19 | 1,100,000 | 1,109,592 | ||||||
State of Illinois, “B”, 5.25%, 6/15/34 | 1,275,000 | 1,414,383 | ||||||
|
| |||||||
$ | 149,836,519 | |||||||
Indiana - 2.0% | ||||||||
Indiana Finance Authority Hospital Rev. (Deaconess Hospital, Inc.), “A”, 6.75%, 3/01/39 (Prerefunded 3/01/19) | $ | 3,000,000 | $ | 3,577,050 | ||||
Indiana Finance Authority Rev. (BHI Senior Living), “A”, 6%, 11/15/41 | 2,840,000 | 3,170,036 | ||||||
Indiana Finance Authority Rev. (I-69 Section 5 Project), 5.25%, 9/01/34 | 1,710,000 | 1,868,979 | ||||||
Indiana Finance Authority Rev. (I-69 Section 5 Project), 5.25%, 9/01/40 | 2,445,000 | 2,609,891 | ||||||
Indiana Finance Authority Rev. (Marquette Project), “A”, 5%, 3/01/30 | 530,000 | 569,946 | ||||||
Indiana Finance Authority Rev. (Marquette Project), “A”, 5%, 3/01/39 | 1,340,000 | 1,401,412 | ||||||
Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/35 | 2,190,000 | 2,333,117 | ||||||
Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/44 | 1,595,000 | 1,666,233 | ||||||
Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), “B”, 5%, 1/01/19 | 1,515,000 | 1,585,569 | ||||||
Indiana Finance Authority Rev. (State Revolving Fund Program), “A”, 5%, 2/01/29 | 4,000,000 | 4,638,400 | ||||||
Indiana Health & Educational Facilities Finance Authority Hospital Rev. (Clarian Health), “B”, 5%, 2/15/33 | 2,490,000 | 2,526,479 | ||||||
Knox County, IN, Economic Development Rev. (Good Samaritan Hospital), “A”, 5%, 4/01/42 | 1,170,000 | 1,221,422 | ||||||
Noblesville, IN, Redevelopment Authority Lease Rental, 5.25%, 8/01/25 | 2,000,000 | 2,083,340 | ||||||
Richmond, IN, Hospital Authority Rev. (Reid Hospital & Health Center Services), “A”, 6.625%, 1/01/39 | 4,715,000 | 5,543,378 | ||||||
St. Joseph County, IN, Educational Facilities Rev. (University of Notre Dame), 6.5%, 3/01/26 | 1,000,000 | 1,383,620 | ||||||
University of Southern Indiana Rev. (Student Fee), “J”, ASSD GTY, 5.75%, 10/01/28 | 1,875,000 | 2,158,800 | ||||||
Valparaiso, IN, Exempt Facilities Rev. (Pratt Paper LLC Project), 6.75%, 1/01/34 | 330,000 | 398,904 | ||||||
Valparaiso, IN, Exempt Facilities Rev. (Pratt Paper LLC Project), 7%, 1/01/44 | 755,000 | 919,930 | ||||||
|
| |||||||
$ | 39,656,506 |
21
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Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Iowa - 1.1% | ||||||||
Iowa Finance Authority Health Facilities Rev. (UnityPoint Health), “C”, 5%, 2/15/30 | $ | 1,200,000 | $ | 1,356,600 | ||||
Iowa Finance Authority Health Facilities Rev. (UnityPoint Health), “C”, 5%, 2/15/31 | 2,230,000 | 2,514,035 | ||||||
Iowa Finance Authority Health Facilities Rev. (UnityPoint Health), “C”, 5%, 2/15/32 | 1,085,000 | 1,216,437 | ||||||
Iowa Finance Authority Midwestern Disaster Area Rev. (Iowa Fertilizer Co.), 5%, 12/01/19 | 1,435,000 | 1,514,226 | ||||||
Iowa Finance Authority Rev. (Iowa Health System Obligated Group), “A”, 5.25%, 2/15/44 | 3,000,000 | 3,334,410 | ||||||
Iowa Finance Authority, Health Care Facilities Rev. (Care Initiatives), “A”, 5.5%, 7/01/25 | 1,205,000 | 1,225,931 | ||||||
Iowa Student Loan Liquidity Corp. Rev., “A-1”, 4.625%, 12/01/19 | 1,935,000 | 2,025,365 | ||||||
Iowa Student Loan Liquidity Corp. Rev., “A-1”, 4.875%, 12/01/20 | 360,000 | 376,769 | ||||||
Iowa Student Loan Liquidity Corp. Rev., “A-2”, 5.5%, 12/01/25 | 1,575,000 | 1,699,850 | ||||||
Iowa Student Loan Liquidity Corp. Rev., “A-2”, 5.6%, 12/01/26 | 1,575,000 | 1,700,291 | ||||||
Iowa Student Loan Liquidity Corp. Rev., “A-2”, 5.7%, 12/01/27 | 135,000 | 144,924 | ||||||
Iowa Student Loan Liquidity Corp. Rev., “A-2”, 5.75%, 12/01/28 | 2,670,000 | 2,865,230 | ||||||
Iowa Tobacco Settlement Authority, Tobacco Settlement Rev., Asset Backed, “B”, 5.6%, 6/01/34 | 3,070,000 | 2,918,066 | ||||||
|
| |||||||
$ | 22,892,134 | |||||||
Kansas - 0.4% | ||||||||
Coffeyville, KS, Electric Utility System Rev., “B”, NATL, 5%, 6/01/38 | $ | 3,800,000 | $ | 3,977,764 | ||||
Coffeyville, KS, Electric Utility System Rev., “B”, NATL, 5%, 6/01/42 | 1,500,000 | 1,557,690 | ||||||
Sedgwick & Shawnee Counties, KS, Single Family Housing Rev., “A-1”, GNMA, 5.75%, 12/01/37 | 95,000 | 100,638 | ||||||
Sedgwick & Shawnee Counties, KS, Single Family Housing Rev., “A-3”, GNMA, 5.5%, 12/01/37 | 435,000 | 451,939 | ||||||
Sedgwick & Shawnee Counties, KS, Single Family Mortgage Rev., “A”, GNMA, 5.45%, 6/01/38 | 660,000 | 687,080 | ||||||
Wyandotte County/Kansas City, KS, Unified Government Special Obligation Rev., Capital Appreciation, “B”, 0%, 6/01/21 | 1,030,000 | 754,887 | ||||||
|
| |||||||
$ | 7,529,998 | |||||||
Kentucky - 1.1% | ||||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Baptist Healthcare System), “A”, 5.375%, 8/15/24 | $ | 2,305,000 | $ | 2,523,583 | ||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Baptist Healthcare System), “A”, 5.625%, 8/15/27 | 770,000 | 848,040 |
22
Table of Contents
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Kentucky - continued | ||||||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6%, 6/01/30 | $ | 640,000 | $ | 722,746 | ||||
Kentucky Economic Development Finance Authority, Hospital Facilities Rev. (Owensboro Medical Health System), “A”, 6.375%, 6/01/40 | 5,500,000 | 6,221,985 | ||||||
Kentucky Turnpike Authority, Economic Development Road Rev. (Revitalization Projects), “A”, 5%, 7/01/32 | 2,000,000 | 2,295,640 | ||||||
Louisville & Jefferson County, KY, Metro Government College Rev. (Bellarmine University, Inc. Project), 6.125%, 5/01/39 | 3,000,000 | 3,245,040 | ||||||
Louisville & Jefferson County, KY, Metropolitan Government Healthcare Systems Rev. (Norton Healthcare, Inc.), 5.25%, 10/01/36 | 4,655,000 | 4,773,516 | ||||||
Owen County, KY, Waterworks System Rev. (American Water Co. Project), “B”, 5.625%, 9/01/39 | 1,670,000 | 1,818,663 | ||||||
|
| |||||||
$ | 22,449,213 | |||||||
Louisiana - 2.7% | ||||||||
Jefferson Parish, LA, Hospital Rev., Hospital Service District No. 1 (West Jefferson Medical Center), “B”, AGM, 5.25%, 1/01/28 (Prerefunded 1/01/20) | $ | 1,980,000 | $ | 2,235,658 | ||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.25%, 7/01/31 | 3,355,000 | 3,841,173 | ||||||
Louisiana Citizens Property Insurance Corp. Rev., AGM, 5%, 6/01/21 | 1,835,000 | 2,132,582 | ||||||
Louisiana Citizens Property Insurance Corp. Rev., AGM, 5%, 6/01/22 | 1,470,000 | 1,726,750 | ||||||
Louisiana Environmental Facilities & Community Development Authority Rev. (St. James Place of Baton Rouge Project), “A”, 6%, 11/15/35 | 580,000 | 579,954 | ||||||
Louisiana Environmental Facilities & Community Development Authority Rev. (St. James Place of Baton Rouge Project), “A”, 6.25%, 11/15/45 | 2,240,000 | 2,244,794 | ||||||
Louisiana Environmental Facilities & Community Development Authority Rev. (Westlake Chemical), 6.75%, 11/01/32 | 1,800,000 | 1,953,576 | ||||||
Louisiana Environmental Facilities & Community Development Authority Rev. (Westlake Chemical), “A”, 6.5%, 8/01/29 | 1,400,000 | 1,639,610 | ||||||
Louisiana Environmental Facilities & Community Development Authority Rev. (Westlake Chemical), “A-2”, 6.5%, 11/01/35 | 6,000,000 | 7,060,980 | ||||||
Louisiana Local Government, Environmental Facilities & Community Development Authority Rev. (CDF Healthcare), “A”, 5.625%, 6/01/45 | 2,500,000 | 2,503,950 | ||||||
Louisiana Public Facilities Authority Hospital Rev. (Lake Charles Memorial Hospital), 6.375%, 12/01/34 | 2,745,000 | 2,978,051 |
23
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Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Louisiana - continued | ||||||||
Louisiana Public Facilities Authority Rev. (Entergy Gulf States Louisiana LLC), “A”, 5%, 9/01/28 | $ | 10,000,000 | $ | 10,037,500 | ||||
Louisiana Stadium & Exposition District Rev., “A”, 5%, 7/01/20 | 665,000 | 769,890 | ||||||
Louisiana Stadium & Exposition District Rev., “A”, 5%, 7/01/21 | 830,000 | 973,549 | ||||||
Louisiana Stadium & Exposition District Rev., “A”, 5%, 7/01/22 | 500,000 | 593,440 | ||||||
Louisiana Stadium & Exposition District Rev., “A”, 5%, 7/01/23 | 1,325,000 | 1,589,139 | ||||||
Louisiana Stadium & Exposition District Rev., “A”, 5%, 7/01/24 | 1,270,000 | 1,507,731 | ||||||
Louisiana Stadium & Exposition District Rev., “A”, 5%, 7/01/25 | 1,000,000 | 1,177,880 | ||||||
Louisiana Stadium & Exposition District Rev., “A”, 5%, 7/01/26 | 2,000,000 | 2,337,320 | ||||||
New Orleans LA, Aviation Board General Airport Rev. (North Terminal Project), “B”, 5%, 1/01/40 | 3,105,000 | 3,362,963 | ||||||
New Orleans, LA, Aviation Board Gulf Opportunity Zone CFC Rev. (Consolidated Rental Car), “A”, 6.25%, 1/01/30 | 1,810,000 | 2,027,327 | ||||||
St. Charles Parish, LA, Gulf Zone Opportunity Zone Rev. (Valero Energy Corp.), 4%, 12/01/40 (Put Date 6/01/22) | 2,000,000 | 2,117,540 | ||||||
|
| |||||||
$ | 55,391,357 | |||||||
Maine - 0.3% | ||||||||
Maine Housing Authority Mortgage, “C-1”, 3.5%, 11/15/44 | $ | 5,505,000 | $ | 5,852,090 | ||||
Maryland - 1.3% | ||||||||
Baltimore, MD, Special Obligation (East Baltimore Research Park Project), “A”, 7%, 9/01/38 | $ | 1,285,000 | $ | 1,375,143 | ||||
Maryland Community Development Administration, Department of Housing & Community Development, “C”, 4%, 9/01/44 | 5,290,000 | 5,742,771 | ||||||
Maryland Economic Development Corp. Adjustable Mode Rev. Refunding (Constellation Energy Group, Inc. Project), “B”, 2.55%, 12/01/25 (Put Date 6/01/20) | 3,385,000 | 3,391,601 | ||||||
Maryland Economic Development Corp. Rev. (Port America Chesapeake Terminal Project), “B”, 5.375%, 6/01/25 | 795,000 | 861,152 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Anne Arundel Health System), “A”, 6.75%, 7/01/39 (Prerefunded 7/01/19) | 1,510,000 | 1,827,115 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Charlestown Community), 6.25%, 1/01/41 | 2,225,000 | 2,472,131 | ||||||
State of Maryland, “B”, 4%, 8/01/27 | 2,570,000 | 2,845,710 | ||||||
State of Maryland, “C”, 5%, 11/01/19 | 6,890,000 | 7,968,492 | ||||||
|
| |||||||
$ | 26,484,115 | |||||||
Massachusetts - 6.9% | ||||||||
Commonwealth of Massachusetts Transportation Fund Rev. (Accelerated Bridge Program), “A”, 5%, 6/01/23 | $ | 2,645,000 | $ | 3,229,333 | ||||
Commonwealth of Massachusetts, “A”, AMBAC, 5.5%, 8/01/30 | 5,000,000 | 6,445,900 |
24
Table of Contents
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Massachusetts - continued | ||||||||
Massachusetts Bay Transportation Authority Rev., “A”, 5.25%, 7/01/34 | $ | 2,000,000 | $ | 2,210,340 | ||||
Massachusetts Bay Transportation Authority, “A”, 7%, 3/01/21 | 3,245,000 | 3,858,565 | ||||||
Massachusetts Bay Transportation Authority, “A”, ETM, 7%, 3/01/21 | 2,870,000 | 3,033,877 | ||||||
Massachusetts Bay Transportation Authority, Sales Tax Rev., “A”, 5%, 7/01/24 | 9,445,000 | 11,632,840 | ||||||
Massachusetts Bay Transportation Authority, Sales Tax Rev., Capital Appreciation, “A-2”, 0%, 7/01/28 | 6,930,000 | 3,981,978 | ||||||
Massachusetts College Building Authority Rev., “A”, 5%, 5/01/31 | 2,395,000 | 2,772,308 | ||||||
Massachusetts Development Finance Agency (Visual & Performing Arts), 6%, 8/01/21 | 1,000,000 | 1,147,970 | ||||||
Massachusetts Development Finance Agency Rev. (Emerson College), 5%, 1/01/21 | 730,000 | 832,791 | ||||||
Massachusetts Development Finance Agency Rev. (Emerson College), 5%, 1/01/22 | 730,000 | 838,653 | ||||||
Massachusetts Development Finance Agency Rev. (Emerson College), 5%, 1/01/23 | 550,000 | 622,342 | ||||||
Massachusetts Development Finance Agency Rev. (Emerson College), 5%, 1/01/24 | 1,340,000 | 1,524,076 | ||||||
Massachusetts Development Finance Agency Rev. (Emerson College), 5%, 1/01/29 | 1,550,000 | 1,705,310 | ||||||
Massachusetts Development Finance Agency Rev. (Emerson College), 5%, 1/01/30 | 3,225,000 | 3,537,535 | ||||||
Massachusetts Development Finance Agency Rev. (Emerson College), 5%, 1/01/31 | 895,000 | 978,808 | ||||||
Massachusetts Development Finance Agency Rev. (Milford Regional Medical Center), “F”, 5.75%, 7/15/43 | 460,000 | 501,823 | ||||||
Massachusetts Development Finance Agency Rev. (North Hill Communities), “A”, 6.25%, 11/15/33 | 275,000 | 296,560 | ||||||
Massachusetts Development Finance Agency Rev. (North Hill Communities), “A”, 6.5%, 11/15/43 | 435,000 | 470,857 | ||||||
Massachusetts Development Finance Agency Rev. (Partners Healthcare), “L”, 5%, 7/01/31 | 2,780,000 | 3,203,227 | ||||||
Massachusetts Development Finance Agency Rev. (Partners Healthcare), “L”, 5%, 7/01/36 | 1,670,000 | 1,905,804 | ||||||
Massachusetts Development Finance Agency Rev. (Sabis International Charter School Issue), 4%, 4/15/20 | 110,000 | 118,265 | ||||||
Massachusetts Development Finance Agency Rev. (Sabis International Charter School Issue), 5%, 4/15/25 | 185,000 | 208,945 | ||||||
Massachusetts Development Finance Agency Rev. (Simmons College), “H”, SYNCORA, 5.25%, 10/01/33 | 420,000 | 487,502 |
25
Table of Contents
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Massachusetts - continued | ||||||||
Massachusetts Development Finance Agency, Resource Recovery Rev. (Covanta Energy Project), “A”, 4.875%, 11/01/27 | $ | 2,380,000 | $ | 2,396,779 | ||||
Massachusetts Development Finance Agency, Resource Recovery Rev. (Covanta Energy Project), “C”, 5.25%, 11/01/42 | 1,150,000 | 1,152,645 | ||||||
Massachusetts Development Finance Agency, Solid Waste Disposal Rev. (Dominion Energy Brayton), 5.846%, 12/01/42 (Prerefunded 5/01/19) | 670,000 | 781,233 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev, “A”, 4.25%, 1/01/30 | 2,180,000 | 2,213,245 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev, “A”, 4.25%, 1/01/31 | 1,475,000 | 1,489,322 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “H”, ASSD GTY, 6.35%, 1/01/30 | 1,685,000 | 1,774,996 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “I-A”, 5.5%, 1/01/22 | 225,000 | 254,392 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “J”, 5%, 7/01/21 | 1,255,000 | 1,421,413 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “J”, 4.7%, 7/01/26 | 2,075,000 | 2,207,966 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “J”, 4.9%, 7/01/28 | 2,150,000 | 2,282,032 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “K”, 5.25%, 7/01/29 | 4,185,000 | 4,556,461 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Harvard University), 5.5%, 11/15/36 (u) | 25,000,000 | 28,470,500 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Suffolk University), “A”, 6.25%, 7/01/30 | 4,055,000 | 4,670,225 | ||||||
Massachusetts Housing Finance Agency, Single Family Housing Rev., “169”, 4%, 12/01/29 | 1,115,000 | 1,173,716 | ||||||
Massachusetts Housing Finance Agency, Single Family Housing Rev., “177”, 4%, 6/01/39 | 1,600,000 | 1,712,464 | ||||||
Massachusetts Port Authority Rev., “A”, 5%, 7/01/37 | 470,000 | 518,288 | ||||||
Massachusetts Port Authority Special Facilities Rev. (Conrac Project), “A”, 5.125%, 7/01/41 | 465,000 | 507,585 | ||||||
Massachusetts Port Authority Special Facilities Rev. (Delta Air Lines Project, Inc.), “A”, AMBAC, 5%, 1/01/27 | 1,925,000 | 1,929,870 | ||||||
Massachusetts School Building Authority, Sales Tax Rev., “A”, 5%, 8/15/26 | 12,500,000 | 14,910,750 | ||||||
Massachusetts Water Resources Authority, “B”, AGM, 5.25%, 8/01/29 | 4,215,000 | 5,375,937 | ||||||
Massachusetts Water Resources Authority, ETM, 6.5%, 7/15/19 | 3,445,000 | 3,797,975 | ||||||
|
| |||||||
$ | 139,143,403 |
26
Table of Contents
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Michigan - 3.1% | ||||||||
Detroit, MI, Distributable State Aid, 5.25%, 11/01/35 | $ | 5,000,000 | $ | 5,368,150 | ||||
Detroit, MI, Sewage Disposal System Rev., Senior Lien, “A”, 5.25%, 7/01/39 | 5,920,000 | 6,382,826 | ||||||
Detroit, MI, Water & Sewerage Department, Senior Lien Sewage Disposal System Rev., “A”, 5%, 7/01/19 | 1,730,000 | 1,909,418 | ||||||
Detroit, MI, Water & Sewerage Department, Senior Lien Sewage Disposal System Rev., “A”, 5%, 7/01/20 | 1,725,000 | 1,931,051 | ||||||
Detroit, MI, Water & Sewerage Department, Senior Lien Sewage Disposal System Rev., “A”, AGM, 5%, 7/01/16 | 1,560,000 | 1,611,106 | ||||||
Detroit, MI, Water Supply System Rev., Senior Lien, “A”, AGM, 5%, 7/01/23 | 930,000 | 949,028 | ||||||
Detroit, MI, Water Supply System Rev., Senior Lien, “A”, AGM, 5%, 7/01/25 | 130,000 | 132,276 | ||||||
Detroit, MI, Water Supply System Rev., Senior Lien, “A”, 5%, 7/01/36 | 295,000 | 310,473 | ||||||
Detroit, MI, Water Supply System Rev., Senior Lien, “C”, 5%, 7/01/41 | 410,000 | 430,430 | ||||||
Grand Valley, MI, State University Rev., 5.5%, 12/01/27 | 985,000 | 1,043,755 | ||||||
Grand Valley, MI, State University Rev., 5.625%, 12/01/29 | 480,000 | 509,333 | ||||||
Michigan Finance Authority (City of Detroit Financial Recovery Income Tax Rev.), “F”, 3.875%, 10/01/23 | 685,000 | 704,481 | ||||||
Michigan Finance Authority (City of Detroit Financial Recovery Income Tax Rev.), “F”, 4%, 10/01/24 | 860,000 | 882,257 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “C-1”, 5%, 7/01/44 | 450,000 | 472,838 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “C-7”, NATL, 5%, 7/01/32 | 580,000 | 633,186 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “D-1”, AGM, 5%, 7/01/35 | 240,000 | 262,757 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “D-1”, AGM, 5%, 7/01/37 | 570,000 | 620,935 | ||||||
Michigan Finance Authority Rev. (Detroit Water and Sewerage Department), “D-6”, NATL, 5%, 7/01/36 | 485,000 | 523,092 | ||||||
Michigan Finance Authority Rev. (Trinity Health Corp.), 5%, 12/01/35 | 3,195,000 | 3,548,527 | ||||||
Michigan Hospital Finance Authority Rev. (Henry Ford Health System), 5.75%, 11/15/39 | 7,165,000 | 8,105,120 | ||||||
Michigan Housing Development Authority, GNMA, 5.2%, 8/20/38 | 1,200,000 | 1,227,252 | ||||||
Michigan Housing Development Authority, “A”, 4%, 6/01/46 | 2,000,000 | 2,160,120 | ||||||
Michigan Strategic Fund (Waste Management, Inc.), 1.5%, 8/01/27 (Put Date 8/01/17) | 5,495,000 | 5,498,737 | ||||||
Michigan Strategic Fund Ltd. Obligation Rev. (Detroit Edison Co.), 5.625%, 7/01/20 | 985,000 | 1,155,868 |
27
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Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Michigan - continued | ||||||||
Michigan Strategic Fund Ltd. Obligation Rev. (Detroit Edison Co.), 5.592%, 8/01/29 (Put Date 8/01/16) | $ | 1,970,000 | $ | 2,039,482 | ||||
Royal Oak, MI, Hospital Finance Authority Rev. (William Beaumont Hospital), “V”, 8.25%, 9/01/39 (Prerefunded 9/01/18) | 2,325,000 | 2,819,760 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, 5%, 12/01/44 | 1,000,000 | 1,089,700 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, BAM, 5%, 12/01/39 | 610,000 | 674,654 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/39 | 470,000 | 497,608 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/44 | 1,020,000 | 1,073,570 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “D”, AGM, 5%, 12/01/40 | 7,105,000 | 7,849,817 | ||||||
|
| |||||||
$ | 62,417,607 | |||||||
Minnesota - 0.5% | ||||||||
Minnesota Housing Finance Agency, Residential Housing, “A”, 4%, 1/01/41 | $ | 2,070,000 | $ | 2,232,329 | ||||
St. Louis Park, MN, Health Care Facilities Rev. (Nicollet Health Services), 5.75%, 7/01/39 (Prerefunded 7/01/19) | 6,445,000 | 7,525,569 | ||||||
University of Minnesota, “A”, 5%, 12/01/25 | 710,000 | 835,166 | ||||||
|
| |||||||
$ | 10,593,064 | |||||||
Mississippi - 1.1% | ||||||||
Alcorn State University, MS, Educational Building Corp. Rev. (Student Housing Project), “A”, 5.125%, 9/01/34 | $ | 2,500,000 | $ | 2,796,400 | ||||
Alcorn State University, MS, Educational Building Corp. Rev. (Student Housing Project), “A”, 5.25%, 9/01/39 | 1,625,000 | 1,823,315 | ||||||
Lowndes County, MS, Solid Waste Disposal & Pollution Control Rev. (Weyerhaeuser Co.), 6.8%, 4/01/22 | 110,000 | 136,992 | ||||||
Mississippi Development Bank Special Obligation (City of Jackson Water and Sewer System Rev. Bond Project), AGM, 6.875%, 12/01/40 | 495,000 | 632,932 | ||||||
Mississippi Development Bank Special Obligation (Harrison County Coliseum), “A”, 5.25%, 1/01/34 | 2,455,000 | 3,087,973 | ||||||
Mississippi Development Bank Special Obligation (Marshall County Industrial Development Authority Mississippi Highway Construction Project), 5%, 1/01/28 | 1,450,000 | 1,638,863 | ||||||
Mississippi Hospital Equipment & Facilities Authority Rev. (Baptist Memorial Healthcare), “A”, 5%, 9/01/22 | 1,445,000 | 1,643,341 | ||||||
Mississippi Hospital Equipment & Facilities Authority Rev. (Baptist Memorial Healthcare), “A”, 5%, 9/01/23 | 3,765,000 | 4,295,037 |
28
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Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Mississippi - continued | ||||||||
Mississippi State University, Educational Building Corp. Rev., 5.25%, 8/01/38 | $ | 1,250,000 | $ | 1,423,525 | ||||
University of Southern Mississippi Educational Building Corp. Rev. (Campus Facilities Improvements Project), 5.375%, 9/01/36 | 610,000 | 684,365 | ||||||
University of Southern Mississippi Educational Building Corp. Rev. (Campus Facilities Improvements Project), 5.25%, 9/01/32 | 1,665,000 | 1,856,875 | ||||||
University of Southern Mississippi, Educational Building Corp. Rev. (Facilities Refinancing Project) “A”, 5%, 3/01/28 | 1,080,000 | 1,275,685 | ||||||
|
| |||||||
$ | 21,295,303 | |||||||
Missouri - 0.5% | ||||||||
Grundy County, MO, Industrial Development Authority, Health Facilities Rev. (Wright Memorial Hospital), 6.75%, 9/01/34 | $ | 1,410,000 | $ | 1,518,048 | ||||
Missouri Health & Educational Facilities Authority Rev. (A.T. Still University Health Services), 5%, 10/01/39 | 730,000 | 814,483 | ||||||
Missouri Health & Educational Facilities Authority Rev. (Lutheran Senior Service Projects), “A”, 5%, 2/01/44 | 1,035,000 | 1,080,819 | ||||||
Missouri Health & Educational Facilities Authority Rev. (SSM Health Care), “A”, 5%, 6/01/31 | 2,615,000 | 2,977,282 | ||||||
Missouri Housing Development Commission, Single Family Mortgage Rev. (First Place Homeownership Loan Program), “A”, GNMA, 3.75%, 5/01/38 | 1,565,000 | 1,684,942 | ||||||
Missouri Housing Development Commission, Single Family Mortgage Rev. (Special Home Ownership Loan Program), “B”, GNMA, 4%, 11/01/40 | 1,740,000 | 1,884,733 | ||||||
|
| |||||||
$ | 9,960,307 | |||||||
Montana - 0.1% | ||||||||
Montana Board of Housing Single Family Program (Federally Insured or Guaranteed Mortgage Loans), “A-2”, 3%, 12/01/43 | $ | 2,320,000 | $ | 2,398,787 | ||||
Nebraska - 1.1% | ||||||||
Douglas County, NE, Educational Facilities Rev. (Creighton University), “A”, 5.875%, 7/01/40 | $ | 6,355,000 | $ | 7,389,276 | ||||
Nebraska Investment Finance Authority, Single Family Housing Rev., “A”, 3%, 3/01/44 | 1,610,000 | 1,659,830 | ||||||
Nebraska Investment Finance Authority, Single Family Housing Rev., “A”, 4%, 9/01/44 | 3,185,000 | 3,444,418 | ||||||
Nebraska Investment Finance Authority, Single Family Housing Rev., “E”, 3%, 3/01/43 | 1,195,000 | 1,221,039 | ||||||
Nebraska Public Power District Rev., “C”, NATL, 5%, 1/01/18 (Prerefunded 1/01/16) | 800,000 | 809,840 |
29
Table of Contents
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Nebraska - continued | ||||||||
Nebraska Public Power District Rev., Unrefunded, “C”, NATL, 5%, 1/01/18 | $ | 7,535,000 | $ | 7,627,304 | ||||
|
| |||||||
$ | 22,151,707 | |||||||
Nevada - 0.1% | ||||||||
Director of the State of Nevada, Department of Business and Industry, Charter School Lease Rev. (Somerset Academy), “A”, 5%, 12/15/35 | $ | 630,000 | $ | 622,062 | ||||
Director of the State of Nevada, Department of Business and Industry, Charter School Lease Rev. (Somerset Academy), “A”, 5.125%, 12/15/45 | 760,000 | 751,876 | ||||||
|
| |||||||
$ | 1,373,938 | |||||||
New Hampshire - 0.3% | ||||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6%, 10/01/27 | $ | 4,610,000 | $ | 5,158,452 | ||||
New Hampshire Business Finance Authority Rev. (Huggins Hospital), 6.875%, 10/01/39 | 475,000 | 508,545 | ||||||
New Hampshire Business Finance Authority, Solid Waste Disposal Rev. (Casella Waste Systems, Inc. Project), 4%, 4/01/29 (Put Date 10/01/19) | 185,000 | 185,918 | ||||||
|
| |||||||
$ | 5,852,915 | |||||||
New Jersey - 3.9% | ||||||||
New Jersey Casino Reinvestment Development Authority, Luxury Tax Rev., AGM, 5%, 11/01/29 | $ | 555,000 | $ | 600,432 | ||||
New Jersey Casino Reinvestment Development Authority, Luxury Tax Rev., AGM, 5%, 11/01/30 | 850,000 | 914,864 | ||||||
New Jersey Casino Reinvestment Development Authority, Luxury Tax Rev., AGM, 5%, 11/01/31 | 555,000 | 593,856 | ||||||
New Jersey Casino Reinvestment Development Authority, Luxury Tax Rev., AGM, 5%, 11/01/32 | 555,000 | 592,118 | ||||||
New Jersey Economic Development Authority Rev. (Provident Group - Rowan Properties LLC - Rowan University Student Housing Project), “A”, 5%, 1/01/30 | 1,095,000 | 1,170,183 | ||||||
New Jersey Economic Development Authority Rev. (Provident Group - Rowan Properties LLC - Rowan University Student Housing Project), “A”, 5%, 1/01/35 | 1,570,000 | 1,651,719 | ||||||
New Jersey Economic Development Authority Rev. (Provident Group - Rowan Properties LLC - Rowan University Student Housing Project), “A”, 5%, 1/01/48 | 455,000 | 471,335 | ||||||
New Jersey Economic Development Authority Rev. (The Goethals Bridge Replacement Project), 5.5%, 1/01/27 | 470,000 | 538,296 |
30
Table of Contents
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
New Jersey - continued | ||||||||
New Jersey Economic Development Authority Rev. (The Goethals Bridge Replacement Project), 5%, 1/01/28 | $ | 470,000 | $ | 519,068 | ||||
New Jersey Economic Development Authority Rev. (The Goethals Bridge Replacement Project), AGM, 5%, 1/01/31 | 1,415,000 | 1,560,589 | ||||||
New Jersey Economic Development Authority Rev. (The Goethals Bridge Replacement Project), AGM, 5.125%, 1/01/39 | 870,000 | 943,576 | ||||||
New Jersey Economic Development Authority Rev. (The Goethals Bridge Replacement Project), AGM, 5.125%, 7/01/42 | 435,000 | 466,555 | ||||||
New Jersey Economic Development Authority, Special Facilities Rev. (Continental Airlines, Inc.), 4.875%, 9/15/19 | 1,125,000 | 1,173,409 | ||||||
New Jersey Economic Development Authority, Special Facilities Rev. (Continental Airlines, Inc.), 5.25%, 9/15/29 | 3,405,000 | 3,678,422 | ||||||
New Jersey Economic Development Authority, Special Facilities Rev. (Continental Airlines, Inc.), “A”, 5.625%, 11/15/30 | 400,000 | 444,728 | ||||||
New Jersey Economic Development Authority, Special Facilities Rev. (Continental Airlines, Inc.), “B”, 5.625%, 11/15/30 | 370,000 | 411,373 | ||||||
New Jersey Economic Development Authority, Water Facilities Rev. (New Jersey American Water Co.), “A”, 5.7%, 10/01/39 | 5,000,000 | 5,673,300 | ||||||
New Jersey Educational Facilities Authority Rev. (University of Medicine & Dentistry), “B”, 7.5%, 12/01/32 (Prerefunded 6/01/19) | 4,195,000 | 5,137,742 | ||||||
New Jersey Higher Education Assistance Authority Senior Student Loan Rev., “1A”, 3.5%, 12/01/29 | 3,655,000 | 3,662,895 | ||||||
New Jersey Higher Education Assistance Authority Student Loan Rev., “A”, ASSD GTY, 6.125%, 6/01/30 | 1,825,000 | 1,969,686 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.5%, 6/01/23 | 28,440,000 | 28,581,916 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.75%, 6/01/34 | 7,960,000 | 6,153,000 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 5%, 6/01/41 | 5,000,000 | 3,929,950 | ||||||
New Jersey Tobacco Settlement Financing Corp., Capital Appreciation, “1-B”, 0%, 6/01/41 | 29,495,000 | 7,436,574 | ||||||
New Jersey Tobacco Settlement Financing Corp., Capital Appreciation, “1-C”, 0%, 6/01/41 | 365,000 | 87,454 | ||||||
|
| |||||||
$ | 78,363,040 | |||||||
New Mexico - 1.2% | ||||||||
Farmington, NM, Pollution Control Rev. (Public Service New Mexico), “D”, 5.9%, 6/01/40 | $ | 9,975,000 | $ | 10,986,266 | ||||
New Mexico Mortgage Finance Authority Rev., “A1”, GNMA, 5.95%, 7/01/37 | 130,000 | 130,748 | ||||||
New Mexico Mortgage Finance Authority Rev., “I”, GNMA, 5.75%, 7/01/38 | 345,000 | 361,922 |
31
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Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
New Mexico - continued | ||||||||
New Mexico Municipal Energy Acquisition Authority, Gas Supply Rev., “A”, 5%, 11/01/39 (Put Date 8/01/19) | $ | 11,435,000 | $ | 12,904,512 | ||||
|
| |||||||
$ | 24,383,448 | |||||||
New York - 4.8% | ||||||||
Brooklyn, NY, Arena Local Development Corp. (Barclays Center Project), 6%, 7/15/30 | $ | 2,015,000 | $ | 2,284,406 | ||||
Build NYC Resource Corp. Solid Waste Disposal Rev. (Pratt Paper, Inc. Project), 5%, 1/01/35 | 1,455,000 | 1,547,873 | ||||||
Hempstead, NY, Local Development Corp. Rev. (Hofstra University Project), 5%, 7/01/25 | 1,450,000 | 1,648,085 | ||||||
Hempstead, NY, Local Development Corp. Rev. (Hofstra University Project), 5%, 7/01/26 | 1,080,000 | 1,218,564 | ||||||
Hempstead, NY, Local Development Corp. Rev. (Hofstra University Project), 5%, 7/01/28 | 275,000 | 306,697 | ||||||
Hudson Yards, NY, Infrastructure Corp. Rev., “A”, 5.75%, 2/15/47 | 3,950,000 | 4,502,842 | ||||||
Liberty, NY, Development Corp. Rev. (Goldman Sachs Headquarters), 5.25%, 10/01/35 | 6,010,000 | 7,101,837 | ||||||
New Rochelle, NY, Corp. for Local Development Rev. (Iona College Project), “A”, 5%, 7/01/29 | 755,000 | 858,548 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (Bronx-Lebanon Hospital Center), LOC, 6.5%, 8/15/30 | 1,475,000 | 1,683,270 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (Bronx-Lebanon Hospital Center), LOC, 6.25%, 2/15/35 | 1,395,000 | 1,574,843 | ||||||
New York Dormitory Authority Rev., State Personal Income Tax, “A”, 5%, 12/15/25 | 5,000,000 | 6,002,800 | ||||||
New York Energy Research & Development Authority Pollution Control Rev. (New York Electric & Gas Corp. Project), “C”, 2%, 6/01/29 (Put Date 5/01/20) | 3,485,000 | 3,489,565 | ||||||
New York Environmental Facilities Corp., Municipal Water Finance Authority Project, 5%, 6/15/25 | 2,300,000 | 2,728,444 | ||||||
New York Environmental Facilities, “C”, 5%, 5/15/41 | 2,745,000 | 3,036,107 | ||||||
New York Environmental Facilities, ETM, 5%, 6/15/16 | 570,000 | 586,809 | ||||||
New York Liberty Development Corp., Liberty Rev. (3 World Trade Center Project), “1”, 5%, 11/15/44 | 4,275,000 | 4,317,836 | ||||||
New York Liberty Development Corp., Liberty Rev. (3 World Trade Center Project), “2”, 5.375%, 11/15/40 | 3,190,000 | �� | 3,346,182 | |||||
New York Liberty Development Corp., Liberty Rev. (World Trade Center Project), 5%, 11/15/31 | 2,300,000 | 2,607,832 | ||||||
New York Thruway Authority General Rev., Junior Indebtedness Obligation, “A”, 5%, 5/01/19 | 3,325,000 | 3,758,879 | ||||||
New York Tobacco Settlement Financing Corp., Asset-Backed Rev., “B”, 5%, 6/01/21 | 5,740,000 | 5,922,819 |
32
Table of Contents
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
New York - continued | ||||||||
New York, NY, “J-4”, FRN, 0.57%, 8/01/25 | $ | 1,715,000 | $ | 1,687,509 | ||||
New York, NY, “J-9”, FRN, 0.42%, 8/01/27 | 5,645,000 | 5,635,855 | ||||||
New York, NY, City Housing Development Corp. (8 Spruce Street), “F”, 4.5%, 2/15/48 | 574,420 | 608,822 | ||||||
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 | 3,573,956 | ||||||
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 | 1,257,794 | ||||||
New York, NY, City Industrial Development Agency Special Facility Rev. (American Airlines, Inc. - JFK International Airport Project), “B”, 2%, 8/01/28 (Put Date 8/01/16) | 600,000 | 600,906 | ||||||
New York, NY, Housing Development Corp., Multi-Family Housing Rev., “E-1-A”, 0.75%, 11/01/16 | 2,165,000 | 2,165,325 | ||||||
New York, NY, Industrial Development Agency, Airport Facilities Rev. (Transportation Infrastructure Properties LLC), 5%, 7/01/28 | 1,570,000 | 1,684,484 | ||||||
Niagara County, NY, Industrial Development Agency, Solid Waste Disposal Rev. (Covanta Energy Project), “A”, 5.25%, 11/01/42 | 1,170,000 | 1,177,605 | ||||||
Onondaga, NY, Civic Development Corp. Rev. (St. Joseph’s Hospital Health Center), 5%, 7/01/25 | 110,000 | 118,356 | ||||||
Onondaga, NY, Civic Development Corp. Rev. (St. Joseph’s Hospital Health Center), 5.125%, 7/01/31 | 110,000 | 116,071 | ||||||
Port Authority of NY & NJ, (170th Series), 5%, 12/01/17 | 1,795,000 | 1,952,116 | ||||||
Port Authority of NY & NJ, (170th Series), 5%, 12/01/18 | 1,025,000 | 1,144,730 | ||||||
Port Authority of NY & NJ, (170th Series), 5%, 12/01/19 | 1,765,000 | 2,009,753 | ||||||
Port Authority of NY & NJ, Special Obligation Rev. (JFK International Air Terminal LLC), 6%, 12/01/36 | 2,315,000 | 2,690,285 | ||||||
Seneca Nation of Indians, NY, Capital Improvements Authority, Special Obligation, 5%, 12/01/23 (n) | 3,995,000 | 4,120,363 | ||||||
Tobacco Settlement Asset Securitization Corporation, NY, “1”, 5%, 6/01/26 | 7,845,000 | 7,955,144 | ||||||
|
| |||||||
$ | 97,023,312 | |||||||
North Carolina - 0.6% | ||||||||
North Carolina Eastern Municipal Power Agency, “A”, NATL, 6.5%, 1/01/18 | $ | 9,250,000 | $ | 10,424,658 | ||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Pennybyrn at Maryfield), 5%, 10/01/25 | 200,000 | 217,214 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Pennybyrn at Maryfield), 5%, 10/01/30 | 250,000 | 261,855 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Pennybyrn at Maryfield), 5%, 10/01/35 | 275,000 | 286,534 |
33
Table of Contents
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
North Carolina - continued | ||||||||
North Carolina Medical Care Commission, Retirement Facilities First Mortgage Rev. (United Church Homes and Services), “A”, 5%, 9/01/37 | $ | 100,000 | $ | 100,374 | ||||
|
| |||||||
$ | 11,290,635 | |||||||
North Dakota - 0.2% | ||||||||
North Dakota Housing Finance Agency Rev. (Home Mortgage Finance Program), “A”, 4%, 7/01/34 | $ | 1,445,000 | $ | 1,554,126 | ||||
North Dakota Housing Finance Agency Rev., (Home Mortgage Finance Program), “B”, 4%, 1/01/36 | 1,740,000 | 1,893,816 | ||||||
|
| |||||||
$ | 3,447,942 | |||||||
Ohio - 2.5% | ||||||||
American Municipal Power, Inc. Rev. (AMP Fremont Energy Center Project), “B”, 5%, 2/15/24 | $ | 1,500,000 | $ | 1,754,355 | ||||
Buckeye, OH, Tobacco Settlement Financing Authority, “A-2”, 5.875%, 6/01/47 | 4,510,000 | 3,729,950 | ||||||
Buckeye, OH, Tobacco Settlement Financing Authority, “A-2”, 6.5%, 6/01/47 | 5,000,000 | 4,479,900 | ||||||
Cleveland-Cuyahoga County, OH, Port Authority Development Rev. (Euclid Avenue Development Corp. Project), 5%, 8/01/44 | 1,225,000 | 1,303,498 | ||||||
Cleveland-Cuyahoga County, OH, Port Authority Rev. (Flats East Development Project), 7%, 5/15/40 | 1,100,000 | 1,256,024 | ||||||
Montgomery County, OH, Health Care & Multifamily Housing Rev. (St. Leonard), 6.375%, 4/01/30 | 1,915,000 | 2,068,775 | ||||||
Montgomery County, OH, Health Care & Multifamily Housing Rev. (St. Leonard), 6.625%, 4/01/40 | 2,770,000 | 3,011,322 | ||||||
Muskingum County, OH, Hospital Facilities Rev. (Genesis Health System Obligated Group), 5%, 2/15/33 | 645,000 | 669,117 | ||||||
Muskingum County, OH, Hospital Facilities Rev. (Genesis Health System Obligated Group), 5%, 2/15/44 | 480,000 | 491,870 | ||||||
Muskingum County, OH, Hospital Facilities Rev. (Genesis Health System Obligated Group), 5%, 2/15/48 | 645,000 | 660,325 | ||||||
Ohio Tax Exempt Private Activity (Portsmouth Bypass Project), AGM, 5%, 12/31/35 | 7,740,000 | 8,444,263 | ||||||
Scioto County, OH, Hospital Facilities Rev. (Southern Ohio Medical Center), 5.625%, 2/15/31 | 1,095,000 | 1,187,396 | ||||||
Scioto County, OH, Hospital Facilities Rev. (Southern Ohio Medical Center), 5.75%, 2/15/38 | 4,195,000 | 4,536,641 | ||||||
Southeastern Ohio Port Authority, Hospital Facilities Improvement Rev. (Memorial Health System Obligated Group Project), 5.5%, 12/01/29 | 130,000 | 140,075 |
34
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Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Ohio - continued | ||||||||
Southeastern Ohio Port Authority, Hospital Facilities Improvement Rev. (Memorial Health System Obligated Group Project), 5%, 12/01/35 | $ | 720,000 | $ | 732,672 | ||||
Southeastern Ohio Port Authority, Hospital Facilities Improvement Rev. (Memorial Health System Obligated Group Project), 5%, 12/01/43 | 925,000 | 933,751 | ||||||
Southeastern Ohio Port Authority, Hospital Facilities Improvement Rev. (Memorial Health System Obligated Group Project), 5.5%, 12/01/43 | 1,130,000 | 1,184,624 | ||||||
Summit County, OH, Port Authority Building Rev. (Flats East Development Recovery Zone Facility Bonds), 6.875%, 5/15/40 | 415,000 | 466,497 | ||||||
Summit County, OH, Port Authority Building Rev. (Seville Project), “A”, 5.1%, 5/15/25 | 150,000 | 150,084 | ||||||
The Ohio State University, Special Purpose Rev., “A”, 5%, 6/01/38 (u) | 3,355,000 | 3,745,153 | ||||||
The Ohio State University, Special Purpose Rev., “A”, 5%, 6/01/43 (u) | 8,150,000 | 9,039,491 | ||||||
|
| |||||||
$ | 49,985,783 | |||||||
Oklahoma - 0.8% | ||||||||
Oklahoma County, OK, Home Finance Authority, Single Family Mortgage Rev., “A”, GNMA, 5.4%, 10/01/38 | $ | 410,000 | $ | 424,514 | ||||
Oklahoma Development Finance Authority, First Mortgage Rev. (Sommerset Project), 5%, 7/01/42 | 1,495,000 | 1,509,830 | ||||||
Oklahoma Industries Authority Rev. (Oklahoma Medical Research Foundation Project), 5.5%, 7/01/29 | 4,400,000 | 4,807,220 | ||||||
Tulsa, OK, Airport Improvement Trust Rev., “A”, 5%, 6/01/45 | 755,000 | 801,848 | ||||||
Tulsa, OK, Industrial Authority Rev. (University of Tulsa), 6%, 10/01/27 | 4,670,000 | 5,308,202 | ||||||
Tulsa, OK, Municipal Airport Trust Rev., 5%, 6/01/35 (Put Date 6/01/25) | 255,000 | 276,611 | ||||||
Tulsa, OK, Municipal Airport Trust Rev. (American Airlines, Inc.), “B”, 5.5%, 6/01/35 | 1,910,000 | 2,040,778 | ||||||
Tulsa, OK, Municipal Airport Trust Rev. (American Airlines, Inc.), “B”, 5.5%, 12/01/35 | 1,440,000 | 1,538,597 | ||||||
|
| |||||||
$ | 16,707,600 | |||||||
Oregon - 0.2% | ||||||||
Forest Grove, OR, Campus Improvement Rev. (Pacific University Project), “A”, 5%, 5/01/30 | $ | 245,000 | $ | 276,833 | ||||
Forest Grove, OR, Campus Improvement Rev. (Pacific University Project), “A”, 5%, 5/01/36 | 1,275,000 | 1,412,050 |
35
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Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Oregon - continued | ||||||||
Forest Grove, OR, Student Housing Rev. (Oak Tree Foundation, Inc.), 5.5%, 3/01/37 | $ | 2,445,000 | $ | 2,508,301 | ||||
|
| |||||||
$ | 4,197,184 | |||||||
Pennsylvania - 4.5% | ||||||||
Allegheny County, PA, Higher Education Building Authority Rev. (Robert Morris University), “A”, 5.9%, 10/15/28 | $ | 1,195,000 | $ | 1,295,739 | ||||
Clarion County, PA, Industrial Development Authority, Student Housing Rev. (Clarion University Foundation, Inc.), 5%, 7/01/34 | 490,000 | 512,947 | ||||||
Commonwealth of Pennsylvania, State Public School Building Authority Lease Rev. (School District of Philadelphia Project), 5%, 4/01/28 | 1,870,000 | 2,053,541 | ||||||
Cumberland County, PA, Municipal Authority Rev. (Asbury Atlantic, Inc.), 6%, 1/01/30 | 715,000 | 766,030 | ||||||
Cumberland County, PA, Municipal Authority Rev. (Asbury Atlantic, Inc.), 6%, 1/01/40 | 1,910,000 | 2,033,291 | ||||||
Cumberland County, PA, Municipal Authority Rev. (Diakon Lutheran Social Ministries Project), 5%, 1/01/21 | 730,000 | 813,957 | ||||||
Cumberland County, PA, Municipal Authority Rev. (Diakon Lutheran Social Ministries Project), 5%, 1/01/22 | 1,275,000 | 1,427,057 | ||||||
Cumberland County, PA, Municipal Authority Rev. (Diakon Lutheran Social Ministries Project), 5%, 1/01/23 | 915,000 | 1,025,843 | ||||||
Cumberland County, PA, Municipal Authority Rev. (Diakon Lutheran Social Ministries Project), 6.125%, 1/01/29 (Prerefunded 1/01/19) | 745,000 | 865,578 | ||||||
Cumberland County, PA, Municipal Authority Rev. (Diakon Lutheran Social Ministries Project), 6.125%, 1/01/29 | 85,000 | 96,504 | ||||||
Cumberland County, PA, Municipal Authority Rev. (Diakon Lutheran Social Ministries Project), 6.375%, 1/01/39 (Prerefunded 1/01/19) | 4,540,000 | 5,311,028 | ||||||
Cumberland County, PA, Municipal Authority Rev. (Diakon Lutheran Social Ministries Project), 6.375%, 1/01/39 | 505,000 | 578,003 | ||||||
Dallas, PA, Area Municipal Authority Rev. (Misericordia University Project), 5%, 5/01/29 | 1,440,000 | 1,571,054 | ||||||
Delaware County, PA, Authority College Rev. (Neumann University), 6%, 10/01/25 | 490,000 | 548,923 | ||||||
Delaware County, PA, Industrial Development Authority, Resource Recovery Facilities Rev. (American Ref-Fuel Co.), “A”, 6.2%, 7/01/19 | 1,030,000 | 1,033,564 | ||||||
Delaware Valley, PA, Regional Finance Authority, 5.75%, 7/01/17 | 3,255,000 | 3,527,671 | ||||||
Delaware Valley, PA, Regional Finance Authority, AMBAC, 5.5%, 8/01/18 | 9,640,000 | 10,699,822 |
36
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Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Pennsylvania - continued | ||||||||
Delaware Valley, PA, Regional Finance Authority, “C”, FRN, 0.967%, 6/01/37 | $ | 7,315,000 | $ | 5,948,851 | ||||
East Hempfield, PA, Industrial Development Authority Rev. (Millersville University Student Services), 5%, 7/01/39 | 485,000 | 502,353 | ||||||
East Hempfield, PA, Industrial Development Authority Rev. (Millersville University Student Services), 5%, 7/01/46 | 265,000 | 273,512 | ||||||
East Hempfield, PA, Industrial Development Authority Rev. (Student Services, Inc., Student Housing Project at Millersville University of Pennsylvania), 5%, 7/01/30 | 365,000 | 389,353 | ||||||
East Hempfield, PA, Industrial Development Authority Rev. (Student Services, Inc., Student Housing Project at Millersville University of Pennsylvania), 5%, 7/01/35 | 470,000 | 492,518 | ||||||
Lancaster County, PA, Hospital Authority Health System Rev. (Masonic Villages Project), 5%, 11/01/27 | 670,000 | 780,892 | ||||||
Lancaster County, PA, Hospital Authority Health System Rev. (Masonic Villages Project), 5%, 11/01/35 | 250,000 | 277,300 | ||||||
Lehigh County, PA, Water and Sewer Authority Rev. (Allentown Concession), “A”, 5%, 12/01/43 | 9,610,000 | 10,705,540 | ||||||
Lehigh County, PA, Water and Sewer Authority Rev. (Allentown Concession), Capital Appreciation, “B”, 0%, 12/01/36 | 12,095,000 | 4,676,048 | ||||||
Luzerne County, PA, AGM, 6.75%, 11/01/23 | 1,110,000 | 1,310,843 | ||||||
Luzerne County, PA, “A”, AGM, 5%, 11/15/29 | 4,110,000 | 4,590,747 | ||||||
Montgomery County, PA, Higher Education & Health Authority Rev. (AHF/Montgomery), 6.875%, 4/01/36 | 720,000 | 741,463 | ||||||
Montgomery County, PA, Industrial Development Authority Pollution Control Rev. (Peco Energy Company Project), “A”, 2.55%, 6/01/29 (Put Date 6/01/20) | 1,095,000 | 1,096,664 | ||||||
Montgomery County, PA, Industrial Development Authority Rev. (Whitemarsh Continuing Care Retirement Community Project), 5.375%, 1/01/50 | 1,015,000 | 1,025,789 | ||||||
Pennsylvania Convention Center Authority Rev., ETM, FGIC, 6.7%, 9/01/16 | 4,045,000 | 4,251,700 | ||||||
Pennsylvania Economic Development Financing Authority Rev. (The Pennsylvania Rapid Bridge Replacement Project), 5%, 6/30/26 | 445,000 | 518,243 | ||||||
Pennsylvania Economic Development Financing Authority Rev. (The Pennsylvania Rapid Bridge Replacement Project), 5%, 12/31/30 | 1,075,000 | 1,169,095 | ||||||
Pennsylvania Economic Development Financing Authority Unemployment Compensation Rev., “B”, 5%, 1/01/23 | 3,230,000 | 3,268,405 | ||||||
Pennsylvania Economic Development Financing Authority Unemployment Compensation Rev., “B”, 5%, 7/01/23 | 250,000 | 250,995 |
37
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Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Pennsylvania - continued | ||||||||
Pennsylvania Economic Development Financing Authority, Sewer Sludge Disposal Rev. (Philadelphia Biosolids Facility), 6.25%, 1/01/32 | $ | 3,110,000 | $ | 3,441,775 | ||||
Pennsylvania Higher Educational Facilities Authority Rev. (Edinboro University Foundation), 5.8%, 7/01/30 | 510,000 | 541,181 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (MaST Charter School), 6%, 8/01/35 | 415,000 | 459,210 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (Philadelphia Performing Arts Charter School Project), 6.5%, 6/15/33 | 2,425,000 | 2,541,521 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (Philadelphia Performing Arts Charter School Project), 6.75%, 6/15/43 | 1,175,000 | 1,237,064 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (Tacony Academy Charter School Project), “A-1”, 6.75%, 6/15/33 | 150,000 | 166,658 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (Tacony Academy Charter School Project), “A-1”, 7%, 6/15/43 | 355,000 | 398,715 | ||||||
Philadelphia, PA, Municipal Authority Rev., 6.5%, 4/01/34 | 1,020,000 | 1,159,893 | ||||||
Philadelphia, PA, Redevelopment Authority Rev., BAM, 5%, 4/15/24 | 1,900,000 | 2,171,947 | ||||||
Reading, PA, School District, “A”, 5%, 4/01/20 | 1,000,000 | 1,111,930 | ||||||
Washington County, PA, Redevelopment Authority (Victory Centre Project), “A”, 5.45%, 7/01/35 | 260,000 | 263,435 | ||||||
West Shore, PA, Area Authority Rev. (Messiah Village Project) “A”, 5%, 7/01/30 | 445,000 | 475,794 | ||||||
West Shore, PA, Area Authority Rev. (Messiah Village Project) “A”, 5%, 7/01/35 | 775,000 | 813,386 | ||||||
|
| |||||||
$ | 91,213,372 | |||||||
Puerto Rico - 1.4% | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., AGM, 5.5%, 7/01/29 | $ | 70,000 | $ | 70,174 | ||||
Commonwealth of Puerto Rico, “A”, NATL, 5.5%, 7/01/20 | 2,280,000 | 2,265,978 | ||||||
Commonwealth of Puerto Rico, “A”, NATL, 5.5%, 7/01/21 | 315,000 | 312,584 | ||||||
Commonwealth of Puerto Rico, Public Improvement, “A”, NATL, 5.5%, 7/01/16 | 295,000 | 298,207 | ||||||
Commonwealth of Puerto Rico, Public Improvement, “C-7”, NATL, 6%, 7/01/27 | 2,470,000 | 2,477,534 | ||||||
Puerto Rico Electric Power Authority Rev., “DDD”, AGM, 3.625%, 7/01/23 | 445,000 | 413,921 | ||||||
Puerto Rico Electric Power Authority Rev., “DDD”, AGM, 3.65%, 7/01/24 | 1,915,000 | 1,734,703 | ||||||
Puerto Rico Electric Power Authority Rev., “KK”, NATL, 5.5%, 7/01/16 | 150,000 | 151,922 |
38
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Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Puerto Rico - continued | ||||||||
Puerto Rico Electric Power Authority Rev., “LL”, NATL, 5.5%, 7/01/17 | $ | 120,000 | $ | 122,500 | ||||
Puerto Rico Electric Power Authority Rev., “MM”, NATL, 5%, 7/01/20 | 50,000 | 49,684 | ||||||
Puerto Rico Electric Power Authority Rev., “NN”, NATL, 5.25%, 7/01/22 | 1,505,000 | 1,496,437 | ||||||
Puerto Rico Electric Power Authority Rev., “PP”, NATL, 5%, 7/01/24 | 60,000 | 57,731 | ||||||
Puerto Rico Electric Power Authority Rev., “SS”, NATL, 5%, 7/01/19 | 4,730,000 | 4,723,709 | ||||||
Puerto Rico Electric Power Authority Rev., “SS”, ASSD GTY, 4.375%, 7/01/30 | 230,000 | 203,854 | ||||||
Puerto Rico Electric Power Authority Rev., “UU”, NATL, 4.5%, 7/01/18 | 135,000 | 134,474 | ||||||
Puerto Rico Electric Power Authority Rev., “UU”, NATL, 5%, 7/01/19 | 640,000 | 639,213 | ||||||
Puerto Rico Electric Power Authority Rev., “UU”, AGM, 5%, 7/01/22 | 225,000 | 223,875 | ||||||
Puerto Rico Electric Power Authority Rev., “UU”, ASSD GTY, 4.25%, 7/01/27 | 1,385,000 | 1,270,280 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5%, 4/01/17 | 465,000 | 456,849 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5%, 4/01/18 | 305,000 | 296,430 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 4%, 4/01/20 | 150,000 | 136,985 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5%, 4/01/21 | 520,000 | 490,121 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5%, 4/01/22 | 600,000 | 550,494 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5%, 4/01/27 | 1,180,000 | 1,031,202 |
39
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Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Puerto Rico - continued | ||||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.5%, 12/01/31 | $ | 690,000 | $ | 615,804 | ||||
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 | 735,000 | 626,992 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5%, 3/01/36 | 710,000 | 583,549 | ||||||
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 | 461,942 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/23 | 1,925,000 | 1,797,873 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/24 | 350,000 | 321,115 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/27 | 1,240,000 | 1,101,616 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/28 | 755,000 | 663,305 | ||||||
Puerto Rico Infrastructure Financing Authority, Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/18 | 350,000 | 345,583 | ||||||
Puerto Rico Public Buildings Authority Government Facilities Rev., “M-3”, NATL, 6%, 7/01/27 | 1,035,000 | 1,037,660 | ||||||
Puerto Rico Public Buildings Authority Government Facilities Rev., “M-3”, NATL, 6%, 7/01/28 | 345,000 | 345,976 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “A”, 5.5%, 8/01/28 (Prerefunded 8/01/19) | 45,000 | 52,336 | ||||||
|
| |||||||
$ | 27,562,612 | |||||||
Rhode Island - 1.2% | ||||||||
Providence, RI, “A”, 5%, 1/15/25 | $ | 1,345,000 | $ | 1,534,739 | ||||
Rhode Island Health & Educational Building Corp. Rev., Hospital Financing (Lifespan Obligated Group), “A”, ASSD GTY, 7%, 5/15/39 | 7,645,000 | 8,916,593 | ||||||
Rhode Island Student Loan Authority, Student Loan Rev., “A”, 3%, 12/01/21 | 4,890,000 | 4,815,917 | ||||||
Rhode Island Student Loan Authority, Student Loan Rev., “A”, 3.25%, 12/01/22 | 1,500,000 | 1,483,770 |
40
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Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Rhode Island - continued | ||||||||
Rhode Island Student Loan Authority, Student Loan Rev., “A”, 3.375%, 12/01/23 | $ | 2,500,000 | $ | 2,457,500 | ||||
Rhode Island Student Loan Authority, Student Loan Rev., “A”, 3.625%, 12/01/25 | 4,115,000 | 4,022,001 | ||||||
|
| |||||||
$ | 23,230,520 | |||||||
South Carolina - 1.4% | ||||||||
Chesterfield County, SC, School District, 5%, 3/01/25 | $ | 2,250,000 | $ | 2,617,695 | ||||
Lancaster County, SC, Assessment Rev. (Sun City Carolina Lakes), 5.45%, 12/01/37 | 40,000 | 40,052 | ||||||
Piedmont, SC, Municipal Power Agency, FGIC, 6.25%, 1/01/21 | 4,150,000 | 5,080,264 | ||||||
Richland County, SC, Environmental Improvement Rev. (International Paper), “A”, 3.875%, 4/01/23 | 5,750,000 | 6,127,545 | ||||||
South Carolina Public Service Authority Rev., “A”, 5.125%, 12/01/43 | 2,745,000 | 3,006,791 | ||||||
South Carolina Public Service Authority Rev., “B”, 5.125%, 12/01/43 | 6,550,000 | 7,174,674 | ||||||
South Carolina Public Service Authority Rev., “C”, 5%, 12/01/36 | 2,920,000 | 3,237,900 | ||||||
|
| |||||||
$ | 27,284,921 | |||||||
South Dakota - 0.2% | ||||||||
South Dakota Educational Enhancement Funding Corp., Tobacco Settlement Rev., “B”, 5%, 6/01/24 | $ | 1,000,000 | $ | 1,157,900 | ||||
South Dakota Educational Enhancement Funding Corp., Tobacco Settlement Rev., “B”, 5%, 6/01/25 | 1,000,000 | 1,149,570 | ||||||
South Dakota Educational Enhancement Funding Corp., Tobacco Settlement Rev., “B”, 5%, 6/01/26 | 1,400,000 | 1,597,386 | ||||||
|
| |||||||
$ | 3,904,856 | |||||||
Tennessee - 2.5% | ||||||||
Chattanooga, TN, Health Educational & Housing Facility Board Rev. (Catholic Health Initiatives), “A”, 5.25%, 1/01/45 | $ | 10,310,000 | $ | 11,249,344 | ||||
Claiborne County, TN, Industrial Development Board Rev. (Lincoln Memorial University Project), 6.125%, 10/01/40 | 3,000,000 | 3,239,910 | ||||||
Hardeman County, TN, Correctional Facilities Corp. (Corrections Corp. of America), 7.375%, 8/01/17 | 185,000 | 185,433 | ||||||
Metropolitan Government of Nashville & Davidson County, TN, Electric Rev., “A”, 5%, 5/15/29 | 4,765,000 | 5,477,749 | ||||||
Metropolitan Government of Nashville & Davidson County, TN, Electric Rev., “A”, 5%, 5/15/30 | 2,500,000 | 2,873,950 | ||||||
Metropolitan Government of Nashville & Davidson County, TN, Health & Educational Facilities Board Rev. (Meharry Medical College), AMBAC, 6%, 12/01/16 | 1,905,000 | 1,954,130 |
41
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Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Tennessee - continued | ||||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/17 | $ | 1,575,000 | $ | 1,698,480 | ||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/19 | 1,500,000 | 1,683,480 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/22 | 1,665,000 | 1,915,433 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/23 | 2,385,000 | 2,758,896 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/24 | 2,215,000 | 2,570,463 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/26 | 2,805,000 | 3,249,985 | ||||||
Tennessee Housing Development Agency Rev., Housing Finance Program, “A”, 3.5%, 7/01/45 | 6,870,000 | 7,321,496 | ||||||
Tennessee Housing Development Agency, Residential Financing Program Rev., “2-C”, 4%, 1/01/45 | 2,480,000 | 2,687,824 | ||||||
Tennessee School Board Authority, Higher Education Facilities Rev., 5.125%, 5/01/33 (Prerefunded 5/01/18) | 270,000 | 299,830 | ||||||
Tennessee School Board Authority, Higher Education Facilities Rev., 5.125%, 5/01/33 (Prerefunded 5/01/18) | 1,230,000 | 1,366,333 | ||||||
|
| |||||||
$ | 50,532,736 | |||||||
Texas - 6.3% | ||||||||
Austin, TX, Convention Center (Convention Enterprises, Inc.), “A”, SYNCORA, 5.25%, 1/01/17 | $ | 995,000 | $ | 1,036,422 | ||||
Austin, TX, Convention Center (Convention Enterprises, Inc.), “A”, SYNCORA, 5.25%, 1/01/19 | 1,375,000 | 1,423,551 | ||||||
Austin, TX, Convention Center (Convention Enterprises, Inc.), “A”, SYNCORA, 5.25%, 1/01/20 | 1,120,000 | 1,159,626 | ||||||
Austin, TX, Convention Center (Convention Enterprises, Inc.), “A”, SYNCORA, 5.25%, 1/01/24 | 2,230,000 | 2,304,906 | ||||||
Austin, TX, Water & Wastewater System Rev., 5%, 11/15/27 | 3,000,000 | 3,517,620 | ||||||
Bell County, TX, Health Facility Development Corp. (Advanced Living Technologies, Inc.), 8%, 12/15/36 (a)(d) | 1,595,000 | 16 | ||||||
Brazos River, TX, Brazoria County Environmental Rev. (Dow Chemical, Co.), “A-3”, 5.125%, 5/15/33 | 2,100,000 | 2,222,829 | ||||||
Brazos River, TX, Harbor Navigation District (Dow Chemical Co.), “A”, 5.95%, 5/15/33 | 7,310,000 | 8,055,401 | ||||||
Clifton, TX, Higher Education Finance Corp. Rev. (Uplift Education), “A”, 6.125%, 12/01/40 | 2,355,000 | 2,689,104 | ||||||
Clifton, TX, Higher Education Finance Corp. Rev. (Uplift Education), “A”, 6.25%, 12/01/45 | 1,425,000 | 1,631,953 | ||||||
Dallas and Fort Worth, TX, International Airport Rev., “C”, 5%, 11/01/45 | 1,875,000 | 2,049,413 |
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Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Texas - continued | ||||||||
Dallas, TX, Waterworks & Sewer System Rev., 5%, 10/01/39 | $ | 10,000,000 | $ | 11,409,900 | ||||
Decatur Hospital Authority Rev. (Wise Regional Health System), “A”, 5.25%, 9/01/44 | 415,000 | 436,397 | ||||||
El Paso, TX, Water & Sewer Rev., 5%, 3/01/28 | 455,000 | 522,654 | ||||||
Fort Worth, TX, Independent School District, Unlimited Tax School Building, PSF, 5%, 2/15/39 | 3,685,000 | 4,194,930 | ||||||
Gregg County, TX, Health Facilities Development Corp. Hospital Rev., (Good Shepherd Obligated Group), “A”, FRN, 4.038%, 10/01/29 (Put Date 3/01/17) | 2,475,000 | 2,506,754 | ||||||
Gulf Coast Waste Disposal Authority (Waste Management, Inc.), 5.2%, 5/01/28 | 300,000 | 308,259 | ||||||
Gulf Coast, TX, Industrial Development Authority Rev. (Microgy Holdings Project), 7%, 12/01/36 (a)(d) | 116,013 | 1 | ||||||
Harris County, TX, Cultural Education Facilities Finance Corp. Medical Facilities Rev. (Baylor College of Medicine), “D”, 5.625%, 11/15/32 | 8,235,000 | 9,010,572 | ||||||
Harris County, TX, Cultural Education Facilities Financial Corp., Thermal Utilities Rev. (Teco Project), “A”, 5.25%, 11/15/35 | 1,560,000 | 1,752,020 | ||||||
Harris County, TX, Health Facilities Development Corp., Hospital Rev. (Memorial Hermann Healthcare Systems), “B”, 7%, 12/01/27 (Prerefunded 12/01/18) | 1,795,000 | 2,136,122 | ||||||
Harris County, TX, Health Facilities Development Corp., Hospital Rev. (Memorial Hermann Healthcare Systems), “B”, 7.25%, 12/01/35 (Prerefunded 12/01/18) | 2,050,000 | 2,455,552 | ||||||
Harris County-Houston, TX, Sports Authority Rev., “C”, 5%, 11/15/31 | 1,175,000 | 1,319,419 | ||||||
Harris County-Houston, TX, Sports Authority Rev., “C”, 5%, 11/15/32 | 225,000 | 250,787 | ||||||
Harris County-Houston, TX, Sports Authority Rev., “C”, 5%, 11/15/33 | 545,000 | 606,116 | ||||||
Harris County-Houston, TX, Sports Authority Rev., Capital Appreciation, “A”, AGM, 0%, 11/15/41 | 900,000 | 268,803 | ||||||
Harris County-Houston, TX, Sports Authority Rev., Capital Appreciation, “A”, AGM, 0%, 11/15/46 | 2,250,000 | 515,993 | ||||||
Houston, TX, Airport System Rev., “B”, 5%, 7/01/26 | 1,855,000 | 2,116,963 | ||||||
Houston, TX, Airport System Rev., Special Facilities Rev. (United Airlines, Inc. Terminal E Project), 5%, 7/01/29 | 2,135,000 | 2,256,802 | ||||||
Houston, TX, Airport System Rev., Special Facilities Rev. (United Airlines, Inc. Terminal E Project), 4.5%, 7/01/20 | 855,000 | 901,871 | ||||||
Houston, TX, Airport System Rev., Special Facilities Rev. (United Airlines, Inc. Terminal E Project), 4.75%, 7/01/24 | 2,465,000 | 2,656,111 | ||||||
Houston, TX, Airport System Rev., Special Facilities Rev. (United Airlines, Inc. Terminal Improvement Projects), “B-1”, 5%, 7/15/30 | 725,000 | 762,207 |
43
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Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Texas - continued | ||||||||
Houston, TX, Airport System Rev., Special Facilities Rev. (United Airlines, Inc. Terminal Improvement Projects), “B-2”, 5%, 7/15/20 | $ | 3,215,000 | $ | 3,442,011 | ||||
Houston, TX, Airport System Rev., Subordinate Lien, “A”, 5%, 7/01/31 | 2,310,000 | 2,542,917 | ||||||
Houston, TX, Industrial Development Corp. (United Parcel Service, Inc.), 6%, 3/01/23 | 165,000 | 165,713 | ||||||
La Vernia, TX, Higher Education Finance Corp. Rev. (KIPP, Inc.), “A”, 6.25%, 8/15/39 (Prerefunded 8/15/19) | 1,470,000 | 1,750,256 | ||||||
La Vernia, TX, Higher Education Finance Corp. Rev. (Lifeschool of Dallas), “A”, 7.5%, 8/15/41 (Prerefunded 8/15/19) | 4,230,000 | 5,225,150 | ||||||
Lufkin, TX, Health Facilities Development Corp. Rev. (Memorial Health System), 5.5%, 2/15/37 (Prerefunded 2/15/17) | 310,000 | 331,179 | ||||||
Matagorda County, TX, Pollution Control Rev. (Central Power & Light Co.), “A”, 6.3%, 11/01/29 | 2,520,000 | 2,864,786 | ||||||
New Hope, TX, Cultural Education Facilities Finance Corp. Student Housing Rev. (Texas A&M University Project), “A”, AGM, 5%, 4/01/46 | 1,585,000 | 1,695,792 | ||||||
New Hope, TX, Cultural Education Facilities Finance Corp., Student Housing Rev. (CHF - Collegiate Housing Stephenville III, L.L.C. - Tarleton State University Project), 5%, 4/01/30 | 355,000 | 376,492 | ||||||
New Hope, TX, Cultural Education Facilities Finance Corp., Student Housing Rev. (CHF - Collegiate Housing Stephenville III, L.L.C. - Tarleton State University Project), 5%, 4/01/35 | 355,000 | 370,808 | ||||||
New Hope, TX, Cultural Education Facilities Finance Corp., Student Housing Rev. (CHF - Collegiate Housing Stephenville III, L.L.C. - Tarleton State University Project), 5%, 4/01/47 | 895,000 | 919,532 | ||||||
Nortex, TX, Housing Finance Corp., Single Family Mortgage Rev., “A”, GNMA, 5.5%, 7/01/38 | 900,000 | 906,660 | ||||||
Permian Basin Housing Finance Corp., TX, Single Family Mortgage Backed Securities (Mortgage Backed Project) “A”, GNMA, 5.65%, 1/01/38 | 860,000 | 872,221 | ||||||
Red River Authority, TX, Pollution Control Rev. (Celanese Project) “B”, 6.7%, 11/01/30 | 1,200,000 | 1,204,044 | ||||||
Red River, TX, Health Facilities Development Corp., Retirement Facilities Rev. (MRC The Crossings Project), “B-2”, 5%, 11/15/19 | 80,000 | 80,129 | ||||||
San Juan, TX, Higher Education Finance Authority Education Rev. (Idea Public Schools), “A”, 6.7%, 8/15/40 | 2,795,000 | 3,249,635 | ||||||
Schertz-Cibolo-Universal City, TX, Independent School District, PSF, 5%, 2/01/36 | 10,000,000 | 10,142,200 | ||||||
Tarrant County, TX, Cultural Education Facilities Finance Corp. Retirement Facility (Air Force Village Foundation, Inc.), 6.125%, 11/15/29 | 395,000 | 429,582 |
44
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Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Texas - continued | ||||||||
Tarrant County, TX, Cultural Education Facilities Finance Corp. Retirement Facility (Air Force Village Foundation, Inc.), 6.375%, 11/15/44 | $ | 3,100,000 | $ | 3,373,544 | ||||
Tarrant County, TX, Cultural Education Facilities Finance Corp. Retirement Facility (Buckingham Senior Living Community, Inc. Project), 3.875%, 11/15/20 | 730,000 | 732,657 | ||||||
Tarrant County, TX, Cultural Education Facilities Finance Corp. Retirement Facility (Stayton at Museum Way), 8.25%, 11/15/44 | 4,500,000 | 4,494,375 | ||||||
Tarrant County, TX, Cultural Education Facilities Finance Corp. Rev. (Trinity Terrace Project), “A-1”, 5%, 10/01/44 | 785,000 | 826,856 | ||||||
Tarrant County, TX, Cultural Education Facilities Finance Corp. Rev. (Trinity Terrace Project), “A-1”, 5%, 10/01/49 | 375,000 | 394,155 | ||||||
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 | 1,856,117 | ||||||
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 | 1,449,117 | ||||||
Texas Transportation Commission, Central Texas Turnpike System Rev., Capital Appreciation, “B”, 0%, 8/15/36 | 4,615,000 | 1,869,490 | ||||||
Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7%, 11/01/30 | 735,000 | 850,910 | ||||||
Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7.125%, 11/01/40 | 2,575,000 | 2,957,980 | ||||||
|
| |||||||
$ | 127,853,382 | |||||||
U.S. Virgin Islands - 0.1% | ||||||||
Virgin Islands Public Finance Authority Rev. (Diageo Project), “A”, 6.75%, 10/01/37 | $ | 2,200,000 | $ | 2,476,892 | ||||
Utah - 0.1% | ||||||||
Intermountain Power Agency, UT, Power Supply Rev., “A”, 5%, 7/01/22 | $ | 1,250,000 | $ | 1,381,150 | ||||
Vermont - 0.3% | ||||||||
Burlington, VT, Airport Rev., “A”, 5%, 7/01/22 | $ | 315,000 | $ | 349,842 | ||||
Burlington, VT, Airport Rev., “A”, AGM, 5%, 7/01/24 | 135,000 | 153,540 | ||||||
Burlington, VT, Airport Rev., “A”, 4%, 7/01/28 | 2,020,000 | 2,057,289 | ||||||
Burlington, VT, Airport Rev., “A”, AGM, 5%, 7/01/30 | 230,000 | 256,724 | ||||||
Vermont Economic Development Authority, Solid Waste Disposal Rev. (Casella Waste Systems, Inc.), 4.75%, 4/01/36 (Put Date 4/02/18) | 1,805,000 | 1,812,346 |
45
Table of Contents
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Vermont - continued | ||||||||
Vermont Housing Finance Agency, Multi-Purpose Rev., “C”, 4%, 11/01/43 | $ | 1,235,000 | $ | 1,328,070 | ||||
|
| |||||||
$ | 5,957,811 | |||||||
Virginia - 0.8% | ||||||||
Commonwealth of Virginia, Transportation Board Rev., Capital Projects, 5%, 5/15/20 | $ | 4,870,000 | $ | 5,673,501 | ||||
Embrey Mill Community Development Authority, VA, Special Assessment Rev., 7.25%, 3/01/43 | 2,135,000 | 2,219,012 | ||||||
Henrico County, VA, Industrial Development Authority Rev. (Bon Secours Health Systems, Inc.), RIBS, FRN, AGM, 11.217%, 8/23/27 (p) | 4,300,000 | 5,310,500 | ||||||
Manassas Park, VA, Economic Development Authority Lease Rev., “A”, 6%, 7/15/35 | 845,000 | 1,019,932 | ||||||
Virginia College Building Authority, Educational Facilities Rev. (Marymount University), “B”, 5.25%, 7/01/30 | 800,000 | 848,832 | ||||||
Virginia College Building Authority, Educational Facilities Rev. (Marymount University), “B”, 5.25%, 7/01/35 | 715,000 | 747,139 | ||||||
Virginia Small Business Financing Authority Rev. (Hampton University), 5.25%, 10/01/29 | 625,000 | 718,731 | ||||||
West Point, VA, Industrial Development Authority, Solid Waste Disposal Rev. (Chesapeake Corp.), “A”, 6.375%, 3/01/19 (a)(d) | 529,028 | 5 | ||||||
|
| |||||||
$ | 16,537,652 | |||||||
Washington - 3.6% | ||||||||
FYI Properties Lease Rev. (Washington State Project), 5.5%, 6/01/34 | $ | 2,255,000 | $ | 2,542,084 | ||||
Seattle, WA, Port Rev., “B”, 5%, 8/01/24 | 3,000,000 | 3,456,630 | ||||||
Skagit County, WA, Public Hospital District No. 001 Rev. (Skagit Valley Hospital), 5.625%, 12/01/25 | 1,000,000 | 1,074,430 | ||||||
Snohomish County, WA, Public Hospital District No. 3, 5%, 12/01/31 | 5,655,000 | 5,990,002 | ||||||
State of Washington, “A”, 5%, 7/01/33 (Prerefunded 7/01/18) | 5,000,000 | 5,570,550 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 6.75%, 7/01/29 (Prerefunded 7/01/19) | 1,450,000 | 1,748,555 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 7%, 7/01/39 (Prerefunded 7/01/19) | 3,690,000 | 4,483,571 | ||||||
Washington Health Care Facilities Authority Rev. (Highline Medical Center), FHA, 6.25%, 8/01/36 (Prerefunded 8/01/18) | 5,285,000 | 6,068,977 | ||||||
Washington Health Care Facilities Authority Rev. (Virginia Mason Medical Center), “A”, 6.25%, 8/15/42 | 3,955,000 | 4,261,948 | ||||||
Washington Higher Education Facilities Authority Rev. (Whitworth University), 5.875%, 10/01/34 | 2,165,000 | 2,356,343 |
46
Table of Contents
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Washington - continued | ||||||||
Washington Housing Finance Community Nonprofit Housing Rev. (Heron’s Key Senior Living), “A”, 7%, 7/01/45 | $ | 300,000 | $ | 308,922 | ||||
Washington Housing Finance Community Nonprofit Housing Rev. (Heron’s Key Senior Living), “A”, 7%, 7/01/50 | 290,000 | 294,457 | ||||||
Washington Housing Finance Community Nonprofit Housing Rev. (Heron’s Key Senior Living), “B-1”, 5.5%, 1/01/24 | 765,000 | 769,269 | ||||||
Washington Housing Finance Community Nonprofit Housing Rev. (Heron’s Key Senior Living), “B-2”, 4.875%, 1/01/22 | 405,000 | 406,794 | ||||||
Washington Housing Finance Community Nonprofit Housing Rev. (Heron’s Key Senior Living), “B-3”, 4.375%, 1/01/21 | 1,035,000 | 1,052,057 | ||||||
Washington Housing Finance Community Nonprofit Housing Rev. (Rockwood Retirement Communities), 5.125%, 1/01/20 | 3,905,000 | 3,906,953 | ||||||
Washington Motor Vehicle Fuel Tax, “E”, 5%, 2/01/37 | 12,000,000 | 13,625,400 | ||||||
Washington Motor Vehicle Fuel Tax, “E”, 5%, 2/01/39 | 7,985,000 | 9,029,039 | ||||||
Washington Public Power Supply System Rev. (Nuclear Project #3), 7.125%, 7/01/16 | 5,145,000 | 5,409,196 | ||||||
|
| |||||||
$ | 72,355,177 | |||||||
West Virginia - 0.4% | ||||||||
Monongalia County, WV, Board of Education, 5%, 5/01/29 | $ | 1,445,000 | $ | 1,653,644 | ||||
Monongalia County, WV, Building Commission Improvement Rev. (Monongalia Health System Obligated Group), 5%, 7/01/29 | 395,000 | 449,174 | ||||||
Monongalia County, WV, Building Commission Improvement Rev. (Monongalia Health System Obligated Group), 5%, 7/01/30 | 1,150,000 | 1,299,546 | ||||||
West Virginia Economic Development Authority, Solid Waste Disposal Facilities Rev. (Appalachian Power Company- Amos Project), “A”, FRN, 1.9%, 3/01/40 (Put Date 4/01/19) | 2,000,000 | 2,004,880 | ||||||
West Virginia Hospital Finance Authority Hospital Rev. (Thomas Health System), 6.5%, 10/01/38 | 2,110,000 | 2,197,839 | ||||||
|
| |||||||
$ | 7,605,083 | |||||||
Wisconsin - 0.8% | ||||||||
Wisconsin Health & Educational Facilities Authority Rev. (Aurora Health Care, Inc.), “A”, 5%, 7/15/26 | $ | 2,215,000 | $ | 2,515,332 | ||||
Wisconsin Health & Educational Facilities Authority Rev. (Aurora Health Care, Inc.), “A”, 5%, 7/15/28 | 665,000 | 749,129 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), “A”, 7.25%, 9/15/29 | 430,000 | 506,011 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), “A”, 7.625%, 9/15/39 | 1,390,000 | 1,643,564 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (Wheaton Franciscan Healthcare), 5.25%, 8/15/18 | 1,500,000 | 1,557,855 | ||||||
Wisconsin Public Finance Authority Education Rev. (Pine Lake Prepatory), 4.95%, 3/01/30 | 120,000 | 120,714 |
47
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Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Wisconsin - continued | ||||||||
Wisconsin Public Finance Authority Education Rev. (Pine Lake Prepatory), 5.25%, 3/01/35 | $ | 120,000 | $ | 120,172 | ||||
Wisconsin Public Finance Authority Education Rev. (Pine Lake Prepatory), 5.5%, 3/01/45 | 320,000 | 320,451 | ||||||
Wisconsin Public Finance Authority Healthcare Facility (Church Home of Hartford, Inc. Project), “A” , 4%, 9/01/20 | 145,000 | 150,194 | ||||||
Wisconsin Public Finance Authority Healthcare Facility (Church Home of Hartford, Inc. Project), “A” , 5%, 9/01/25 | 100,000 | 106,349 | ||||||
Wisconsin Public Finance Authority Healthcare Facility (Church Home of Hartford, Inc. Project), “A” , 5%, 9/01/30 | 165,000 | 167,884 | ||||||
Wisconsin Public Finance Authority Healthcare Facility (Church Home of Hartford, Inc. Project), “A”, 5%, 9/01/38 | 220,000 | 219,395 | ||||||
Wisconsin Public Finance Authority Senior Living Rev. (Rose Villa Project), “A”, 5.125%, 11/15/29 | 490,000 | 504,092 | ||||||
Wisconsin Public Finance Authority Senior Living Rev. (Rose Villa Project), “A”, 5.5%, 11/15/34 | 455,000 | 476,913 | ||||||
Wisconsin Public Finance Authority Senior Living Rev. (Rose Villa Project), “A”, 5.75%, 11/15/44 | 375,000 | 397,215 | ||||||
Wisconsin Public Finance Authority Senior Living Rev. (Rose Villa Project), “A”, 6%, 11/15/49 | 740,000 | 797,032 | ||||||
Wisconsin Public Finance Authority Senior Living Rev. (Rose Villa Project), “B-3”, 3.75%, 11/15/19 | 475,000 | 475,912 | ||||||
Wisconsin Public Finance Authority, Airport Facilities Rev. (Transportation Infrastructure Properties LLC), “B”, 5%, 7/01/22 | 1,330,000 | 1,408,111 | ||||||
Wisconsin Public Finance Authority, Airport Facilities Rev. (Transportation Infrastructure Properties LLC), “B”, 5.25%, 7/01/28 | 1,260,000 | 1,355,017 | ||||||
Wisconsin Public Finance Authority, Airport Facilities Rev. (Transportation Infrastructure Properties LLC), “B”, 5%, 7/01/42 | 1,600,000 | 1,656,016 | ||||||
|
| |||||||
$ | 15,247,358 | |||||||
Total Municipal Bonds (Identified Cost, $1,860,813,350) | $ | 1,997,691,922 | ||||||
Floating Rate Demand Notes - 0.1% | ||||||||
Lincoln County, WY, Pollution Control Rev. (Exxon Mobil Corp.), “B”, 0.01%, due 10/01/15 | $ | 580,000 | $ | 580,000 | ||||
Lincoln County, WY, Pollution Control Rev. (Exxon Mobil Corp.), “C”, 0.01%, due 10/01/15 | 910,000 | 910,000 | ||||||
Total Floating Rate Demand Notes, at Cost and Value | $ | 1,490,000 |
48
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Portfolio of Investments (unaudited) – continued
Money Market Funds - 1.3% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
MFS Institutional Money Market Portfolio, 0.12%, at Cost and Net Asset Value (v) | 25,765,269 | $ | 25,765,269 | |||||
Total Investments (Identified Cost, $1,888,068,619) | $ | 2,024,947,191 | ||||||
Other Assets, Less Liabilities - (0.6)% | (12,690,900 | ) | ||||||
Net Assets - 100.0% | $ | 2,012,256,291 |
(a) | Non-income producing security. |
(d) | In default. |
(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 $11,667,334 representing 0.6% 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 the current rate 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. | |||||
ASSD GTY | Assured Guaranty Insurance Co. | |||||
BAM | Build America Mutual | |||||
BHAC | Berkshire Hathaway Assurance Corp. | |||||
CALHF | California Health Facility Construction Loan Insurance Program | |||||
FGIC | Financial Guaranty Insurance Co. | |||||
FHA | Federal Housing Administration | |||||
FHLMC | Federal Home Loan Mortgage Corp. | |||||
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
49
Table of Contents
Financial Statements
STATEMENT OF ASSETS AND LIABILITIES
At 9/30/15 (unaudited)
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, $1,862,303,350) | $1,999,181,922 | |||
Underlying affiliated funds, at cost and value | 25,765,269 | |||
Total investments, at value (identified cost, $1,888,068,619) | $2,024,947,191 | |||
Receivables for |
| |||
Investments sold | 2,862,075 | |||
Fund shares sold | 2,532,479 | |||
Interest | 27,293,698 | |||
Receivable from investment adviser | 40,370 | |||
Other assets | 1,430 | |||
Total assets | $2,057,677,243 | |||
Liabilities | ||||
Payables for | ||||
Distributions | $697,237 | |||
Investments purchased | 8,041,323 | |||
Interest expense and fees | 82,126 | |||
Fund shares reacquired | 5,057,441 | |||
Payable to the holders of the floating rate certificates from trust assets | 30,434,925 | |||
Payable to affiliates | ||||
Shareholder servicing costs | 911,659 | |||
Distribution and service fees | 17,678 | |||
Payable for independent Trustees’ compensation | 19,313 | |||
Accrued expenses and other liabilities | 159,250 | |||
Total liabilities | $45,420,952 | |||
Net assets | $2,012,256,291 | |||
Net assets consist of | ||||
Paid-in capital | $1,892,603,657 | |||
Unrealized appreciation (depreciation) on investments | 136,878,572 | |||
Accumulated net realized gain (loss) on investments | (21,843,886 | ) | ||
Undistributed net investment income | 4,617,948 | |||
Net assets | $2,012,256,291 | |||
Shares of beneficial interest outstanding | 230,030,130 |
Net assets | Shares outstanding | Net asset value per share (a) | ||||||||||
Class A | $779,421,598 | 89,116,130 | $8.75 | |||||||||
Class B | 27,327,234 | 3,119,977 | 8.76 | |||||||||
Class C | 166,563,224 | 18,978,196 | 8.78 | |||||||||
Class I | 481,619,191 | 55,128,756 | 8.74 | |||||||||
Class A1 | 557,058,944 | 63,656,691 | 8.75 | |||||||||
Class B1 | 266,100 | 30,380 | 8.76 |
(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 price per share was $9.14 [100 / 95.75 x $8.75] and $9.14 [100 / 95.75 x $8.75], respectively. On sales of $100,000 or more, the maximum offering price 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
50
Table of Contents
Financial Statements
Six months ended 9/30/15 (unaudited)
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 | $48,965,038 | |||
Dividends from underlying affiliated funds | 31,632 | |||
Total investment income | $48,996,670 | |||
Expenses | ||||
Management fee | $4,430,798 | |||
Distribution and service fees | 1,934,571 | |||
Shareholder servicing costs | 941,365 | |||
Administrative services fee | 176,817 | |||
Independent Trustees’ compensation | 28,931 | |||
Custodian fee | 105,586 | |||
Shareholder communications | 58,874 | |||
Audit and tax fees | 29,009 | |||
Legal fees | 9,996 | |||
Interest expense and fees | 146,651 | |||
Miscellaneous | 115,126 | |||
Total expenses | $7,977,724 | |||
Fees paid indirectly | (3 | ) | ||
Reduction of expenses by investment adviser and distributor | (601,536 | ) | ||
Net expenses | $7,376,185 | |||
Net investment income | $41,620,485 | |||
Realized and unrealized gain (loss) on investments | ||||
Realized gain (loss) (identified cost basis) | ||||
Investments | $6,891,748 | |||
Futures contracts | 279,624 | |||
Net realized gain (loss) on investments | $7,171,372 | |||
Change in unrealized appreciation (depreciation) on investments | $(35,707,895 | ) | ||
Net realized and unrealized gain (loss) on investments | $(28,536,523 | ) | ||
Change in net assets from operations | $13,083,962 |
See Notes to Financial Statements
51
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.
Change in net assets | Six months ended (unaudited) | Year ended | ||||||
From operations | ||||||||
Net investment income | $41,620,485 | $81,180,462 | ||||||
Net realized gain (loss) on investments | 7,171,372 | 3,811,726 | ||||||
Net unrealized gain (loss) on investments | (35,707,895 | ) | 80,069,145 | |||||
Change in net assets from operations | $13,083,962 | $165,061,333 | ||||||
Distributions declared to shareholders | ||||||||
From net investment income | $(39,792,365 | ) | $(75,843,616 | ) | ||||
Change in net assets from fund share transactions | $(198,315,115 | ) | $89,538,603 | |||||
Total change in net assets | $(225,023,518 | ) | $178,756,320 | |||||
Net assets | ||||||||
At beginning of period | 2,237,279,809 | 2,058,523,489 | ||||||
At end of period (including undistributed net investment income of $4,617,948 and $2,789,828, respectively) | $2,012,256,291 | $2,237,279,809 |
See Notes to Financial Statements
52
Table of Contents
Financial Statements
The financial highlights table is intended to help you understand the fund’s financial performance for the semiannual period and the past 5 fiscal 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.
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
Class A | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value, beginning of period | $8.85 | $8.48 | $8.94 | $8.68 | $7.91 | $8.32 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.16 | $0.32 | $0.33 | $0.35 | $0.39 | $0.41 | ||||||||||||||||||
Net realized and unrealized gain | (0.11 | ) | 0.35 | (0.47 | ) | 0.24 | 0.76 | (0.42 | ) | |||||||||||||||
Total from investment operations | $0.05 | $0.67 | $(0.14 | ) | $0.59 | $1.15 | $(0.01 | ) | ||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.15 | ) | $(0.30 | ) | $(0.32 | ) | $(0.33 | ) | $(0.38 | ) | $(0.40 | ) | ||||||||||||
Net asset value, end of period (x) | $8.75 | $8.85 | $8.48 | $8.94 | $8.68 | $7.91 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 0.62 | (n) | 8.02 | (1.52 | ) | 6.88 | 14.83 | (0.24 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||||||
Expenses before expense reductions (f) | 0.80 | (a) | 0.80 | 0.80 | 0.79 | 0.81 | 0.81 | |||||||||||||||||
Expenses after expense reductions (f) | 0.74 | (a) | 0.74 | 0.75 | 0.76 | 0.77 | 0.78 | |||||||||||||||||
Net investment income | 3.68 | (a) | 3.71 | 3.92 | 3.90 | 4.69 | 4.95 | |||||||||||||||||
Portfolio turnover | 12 | (n) | 17 | 32 | 23 | 25 | 23 | |||||||||||||||||
Net assets at end of period | $779,422 | $781,630 | $736,374 | $1,027,992 | $829,860 | $764,621 | ||||||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||||||
Ratio of expenses to average net | 0.73 | (a) | 0.73 | 0.73 | 0.74 | 0.74 | 0.74 |
See Notes to Financial Statements
53
Table of Contents
Financial Highlights – continued
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
Class B | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value, beginning of period | $8.86 | $8.49 | $8.95 | $8.70 | $7.92 | $8.34 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.13 | $0.26 | $0.27 | $0.28 | $0.33 | $0.35 | ||||||||||||||||||
Net realized and unrealized gain | (0.11 | ) | 0.35 | (0.48 | ) | 0.23 | 0.77 | (0.43 | ) | |||||||||||||||
Total from investment operations | $0.02 | $0.61 | $(0.21 | ) | $0.51 | $1.10 | $(0.08 | ) | ||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.12 | ) | $(0.24 | ) | $(0.25 | ) | $(0.26 | ) | $(0.32 | ) | $(0.34 | ) | ||||||||||||
Net asset value, end of period (x) | $8.76 | $8.86 | $8.49 | $8.95 | $8.70 | $7.92 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 0.24 | (n) | 7.21 | (2.26 | ) | 5.95 | 14.09 | (1.10 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: |
| |||||||||||||||||||||||
Expenses before expense reductions (f) | 1.55 | (a) | 1.55 | 1.55 | 1.54 | 1.56 | 1.56 | |||||||||||||||||
Expenses after expense reductions (f) | 1.49 | (a) | 1.49 | 1.51 | 1.51 | 1.52 | 1.53 | |||||||||||||||||
Net investment income | 2.92 | (a) | 2.95 | 3.16 | 3.15 | 3.91 | 4.21 | |||||||||||||||||
Portfolio turnover | 12 | (n) | 17 | 32 | 23 | 25 | 23 | |||||||||||||||||
Net assets at end of period | $27,327 | $28,032 | $28,220 | $37,759 | $31,883 | $22,842 | ||||||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||||||
Ratio of expenses to average net | 1.48 | (a) | 1.48 | 1.49 | 1.48 | 1.49 | 1.49 |
See Notes to Financial Statements
54
Table of Contents
Financial Highlights – continued
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
Class C | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value, beginning of period | $8.88 | $8.51 | $8.97 | $8.71 | $7.94 | $8.35 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.13 | $0.26 | $0.27 | $0.28 | $0.33 | $0.35 | ||||||||||||||||||
Net realized and unrealized gain | (0.11 | ) | 0.35 | (0.48 | ) | 0.24 | 0.76 | (0.42 | ) | |||||||||||||||
Total from investment operations | $0.02 | $0.61 | $(0.21 | ) | $0.52 | $1.09 | $(0.07 | ) | ||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.12 | ) | $(0.24 | ) | $(0.25 | ) | $(0.26 | ) | $(0.32 | ) | $(0.34 | ) | ||||||||||||
Net asset value, end of period (x) | $8.78 | $8.88 | $8.51 | $8.97 | $8.71 | $7.94 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 0.24 | (n) | 7.19 | (2.26 | ) | 6.06 | 13.92 | (0.97 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: |
| |||||||||||||||||||||||
Expenses before expense reductions (f) | 1.54 | (a) | 1.55 | 1.55 | 1.54 | 1.56 | 1.56 | |||||||||||||||||
Expenses after expense reductions (f) | 1.49 | (a) | 1.49 | 1.51 | 1.51 | 1.52 | 1.52 | |||||||||||||||||
Net investment income | 2.91 | (a) | 2.94 | 3.15 | 3.14 | 3.92 | 4.19 | |||||||||||||||||
Portfolio turnover | 12 | (n) | 17 | 32 | 23 | 25 | 23 | |||||||||||||||||
Net assets at end of period | $166,563 | $166,885 | $162,443 | $234,735 | $187,078 | $149,727 | ||||||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||||||
Ratio of expenses to average net | 1.48 | (a) | 1.48 | 1.49 | 1.48 | 1.49 | 1.49 |
See Notes to Financial Statements
55
Table of Contents
Financial Highlights – continued
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||
Class I | 2015 | 2014 | 2013 | 2012 (i) | ||||||||||||||||
Net asset value, beginning of period | $8.84 | $8.47 | $8.93 | $8.67 | $8.22 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (d) | $0.17 | $0.35 | $0.35 | $0.37 | $0.27 | |||||||||||||||
Net realized and unrealized gain | (0.11 | ) | 0.34 | (0.47 | ) | 0.24 | 0.44 | (g) | ||||||||||||
Total from investment operations | $0.06 | $0.69 | $(0.12 | ) | $0.61 | $0.71 | ||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.16 | ) | $(0.32 | ) | $(0.34 | ) | $(0.35 | ) | $(0.26 | ) | ||||||||||
Net asset value, end of period (x) | $8.74 | $8.84 | $8.47 | $8.93 | $8.67 | |||||||||||||||
Total return (%) (r)(s)(x) | 0.74 | (n) | 8.30 | (1.29 | ) | 7.15 | 8.75 | (n) | ||||||||||||
Ratios (%) (to average net assets) and Supplemental data: |
| |||||||||||||||||||
Expenses before expense reductions (f) | 0.55 | (a) | 0.55 | 0.55 | 0.55 | 0.55 | (a) | |||||||||||||
Expenses after expense reductions (f) | 0.49 | (a) | 0.49 | 0.50 | 0.51 | 0.52 | (a) | |||||||||||||
Net investment income | 3.94 | (a) | 3.95 | 4.13 | 4.13 | 4.70 | (a) | |||||||||||||
Portfolio turnover | 12 | (n) | 17 | 32 | 23 | 25 | ||||||||||||||
Net assets at end of period | $481,619 | $682,371 | $546,220 | $334,033 | $186,734 | |||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||
Ratio of expenses to average net | 0.48 | (a) | 0.48 | 0.48 | 0.49 | 0.49 | (a) |
See Notes to Financial Statements
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Financial Highlights – continued
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
Class A1 | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value, beginning of period | $8.85 | $8.49 | $8.95 | $8.69 | $7.92 | $8.33 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.17 | $0.35 | $0.35 | $0.37 | $0.41 | $0.43 | ||||||||||||||||||
Net realized and unrealized gain | (0.11 | ) | 0.33 | (0.47 | ) | 0.24 | 0.76 | (0.42 | ) | |||||||||||||||
Total from investment operations | $0.06 | $0.68 | $(0.12 | ) | $0.61 | $1.17 | $0.01 | |||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.16 | ) | $(0.32 | ) | $(0.34 | ) | $(0.35 | ) | $(0.40 | ) | $(0.42 | ) | ||||||||||||
Net asset value, end of period (x) | $8.75 | $8.85 | $8.49 | $8.95 | $8.69 | $7.92 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 0.74 | (n) | 8.16 | (1.27 | ) | 7.14 | 15.11 | 0.01 | ||||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: |
| |||||||||||||||||||||||
Expenses before expense reductions (f) | 0.55 | (a) | 0.55 | 0.55 | 0.55 | 0.56 | 0.56 | |||||||||||||||||
Expenses after expense reductions (f) | 0.49 | (a) | 0.50 | 0.51 | 0.51 | 0.52 | 0.53 | |||||||||||||||||
Net investment income | 3.93 | (a) | 3.96 | 4.17 | 4.18 | 4.96 | 5.22 | |||||||||||||||||
Portfolio turnover | 12 | (n) | 17 | 32 | 23 | 25 | 23 | |||||||||||||||||
Net assets at end of period | $557,059 | $577,992 | $584,287 | $703,916 | $714,380 | $689,074 | ||||||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||||||
Ratio of expenses to average net | 0.48 | (a) | 0.48 | 0.49 | 0.49 | 0.49 | 0.49 |
See Notes to Financial Statements
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Financial Highlights – continued
Six months (unaudited) | Years ended 3/31 | |||||||||||||||||||||||
Class B1 | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Net asset value, beginning of period | $8.86 | $8.49 | $8.95 | $8.69 | $7.92 | $8.34 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||||||
Net investment income (d) | $0.14 | $0.28 | $0.29 | $0.31 | $0.35 | $0.37 | ||||||||||||||||||
Net realized and unrealized gain | (0.11 | ) | 0.35 | (0.48 | ) | 0.24 | 0.76 | (0.43 | ) | |||||||||||||||
Total from investment operations | $0.03 | $0.63 | $(0.19 | ) | $0.55 | $1.11 | $(0.06 | ) | ||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||||||
From net investment income | $(0.13 | ) | $(0.26 | ) | $(0.27 | ) | $(0.29 | ) | $(0.34 | ) | $(0.36 | ) | ||||||||||||
Net asset value, end of period (x) | $8.76 | $8.86 | $8.49 | $8.95 | $8.69 | $7.92 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 0.36 | (n) | 7.46 | (2.02 | ) | 6.34 | 14.24 | (0.86 | ) | |||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: |
| |||||||||||||||||||||||
Expenses before expense reductions (f) | 1.55 | (a) | 1.55 | 1.55 | 1.54 | 1.56 | 1.56 | |||||||||||||||||
Expenses after expense reductions (f) | 1.27 | (a) | 1.26 | 1.27 | 1.27 | 1.28 | 1.29 | |||||||||||||||||
Net investment income | 3.15 | (a) | 3.19 | 3.39 | 3.47 | 4.23 | 4.46 | |||||||||||||||||
Portfolio turnover | 12 | (n) | 17 | 32 | 23 | 25 | 23 | |||||||||||||||||
Net assets at end of period | $266 | $370 | $980 | $2,374 | $4,304 | $6,230 | ||||||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||||||
Ratio of expenses to average net | 1.25 | (a) | 1.25 | 1.25 | 1.25 | 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 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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(unaudited)
(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 Standards 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.
Balance Sheet Offsetting – The fund’s accounting policy with respect to balance sheet offsetting is that, absent an event of default by the counterparty or a termination of the agreement, the International Swaps and Derivatives Association (ISDA) Master Agreement does not result in an offset of reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities across transactions between the fund and the applicable counterparty. The fund’s right to setoff may be restricted or prohibited by the bankruptcy or insolvency laws of the particular jurisdiction to which a specific master netting agreement counterparty is subject. Balance sheet offsetting disclosures, 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.
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Investment Valuations – Debt instruments and floating rate loans, 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 may be valued at amortized cost, which approximates market value. Futures contracts are generally valued at last posted settlement price as provided by a third-party pricing service on the market on which they are primarily traded. Futures contracts for which there were no trades that day for a particular position are generally valued at the closing bid quotation as provided by a third-party pricing service on the market on which such futures contracts are primarily traded. 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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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 September 30, 2015 in valuing the fund’s assets or liabilities:
Investments at Value | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Municipal Bonds | $— | $1,997,691,922 | $— | $1,997,691,922 | ||||||||||||
Short Term Securities | — | 1,490,000 | — | 1,490,000 | ||||||||||||
Mutual Funds | 25,765,269 | — | — | 25,765,269 | ||||||||||||
Total Investments | $25,765,269 | $1,999,181,922 | $— | $2,024,947,191 |
For further information regarding security characteristics, see the Portfolio of Investments.
Derivatives – The fund uses derivatives for different purposes, primarily to increase or decrease exposure to a particular market or segment of the market, or security, to increase or decrease interest rate exposure, or as alternatives to direct investments. Derivatives are used for hedging or non-hedging purposes. While hedging can reduce or eliminate losses, it can also reduce or eliminate gains. When the fund uses derivatives as an investment to increase market exposure, or for hedging purposes, gains and losses from derivative instruments may be substantially greater than the derivative’s original cost.
The derivative instruments used by the fund were futures contracts. At September 30, 2015, the fund did not have any outstanding derivative instruments.
The following table presents, by major type of derivative contract, the realized gain (loss) on derivatives held by the fund for the six months ended September 30, 2015 as reported in the Statement of Operations:
Risk | Futures Contracts | |||
Interest Rate | $279,624 |
There is no change in unrealized appreciation (depreciation) on derivative transactions at period end.
Derivative counterparty credit risk is managed through formal evaluation of the creditworthiness of all potential counterparties. On certain, but not all, uncleared derivatives, the fund attempts to reduce its exposure to counterparty credit risk whenever possible by entering into an ISDA Master Agreement on a bilateral basis. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the other party. Upon an event of default or a termination of the ISDA Master Agreement, the non-defaulting party has the right to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments
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across all transactions traded under the ISDA Master Agreement could result in a reduction of the fund’s credit risk to such counterparty equal to any amounts payable by the fund under the applicable transactions, if any.
Collateral and margin requirements differ by type of derivative. Margin requirements are set by the clearing broker and the clearing house for cleared derivatives (e.g., futures contracts, cleared swaps, and exchange-traded options) while collateral terms are contract specific for uncleared derivatives (e.g., forward foreign currency exchange contracts, uncleared swap agreements, and uncleared options). For derivatives traded under an ISDA Master Agreement, which contains a collateral support annex, the collateral requirements are netted across all transactions traded under such agreement and one amount is posted from one party to the other to collateralize such obligations. Cash that has been segregated to cover the fund’s collateral or margin obligations under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities as “Restricted cash” or “Deposits with brokers.” Securities pledged as collateral or margin for the same purpose, if any, are noted in the Portfolio of Investments.
Futures Contracts – The fund entered into futures contracts which may be used to hedge against or obtain broad market exposure, interest rate exposure, or to manage duration. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date.
Upon entering into a futures contract, the fund is required to deposit with the broker, either in cash or securities, an initial margin in an amount equal to a certain percentage of the notional amount of the contract. Subsequent payments (variation margin) are made or received by the fund each day, depending on the daily fluctuations in the value of the contract, and are recorded for financial statement purposes as unrealized gain or loss by the fund until the contract is closed or expires at which point the gain or loss on futures contracts is realized.
The fund bears the risk of interest rates or securities prices moving unexpectedly, in which case, the fund may not achieve the anticipated benefits of the futures contracts and may realize a loss. While futures contracts may present less counterparty risk to the fund since the contracts are exchange traded and the exchange’s clearinghouse guarantees payments to the broker, there is still counterparty credit risk due to the insolvency of the broker. The fund’s maximum risk of loss due to counterparty credit risk is equal to the margin posted by the fund to the broker plus any gains or minus any losses on the outstanding futures contracts.
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
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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 disclosure. At September 30, 2015, the fund’s payable to the holders of the floating rate certificates from trust assets was $30,434,925 and the interest rate on the floating rate certificates issued by the trust was 0.04%. For the six months ended September 30, 2015, the average payable to the holders of the floating rate certificates from trust assets was $36,229,359 at a weighted average interest rate of 0.07%. 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 six months ended September 30, 2015, interest expense and fees related to self-deposited inverse floaters amounted to $146,651 and is included in “Interest expense and fees” in the Statement of Operations. 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
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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.
Fees Paid Indirectly – The fund’s custody fee may be reduced by a credit earned under an arrangement that measures the value of U.S. dollars deposited with the custodian by the fund. The amount of the credit, for the six months ended September 30, 2015, 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.
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The tax character of distributions made during the current period will be determined at fiscal year end. The tax character of distributions declared to shareholders for the last fiscal year is as follows:
3/31/15 | ||||
Ordinary income (including any short-term capital gains) | $236,020 | |||
Tax-exempt income | 75,607,596 | |||
Total distributions | $75,843,616 |
The federal tax cost and the tax basis components of distributable earnings were as follows:
As of 9/30/15 | ||||
Cost of investments | $1,844,178,686 | |||
Gross appreciation | 155,337,372 | |||
Gross depreciation | (5,003,792 | ) | ||
Net unrealized appreciation (depreciation) | $150,333,580 | |||
As of 3/31/15 | ||||
Undistributed tax-exempt income | 9,494,321 | |||
Capital loss carryforwards | (41,183,467 | ) | ||
Other temporary differences | (6,704,493 | ) | ||
Net unrealized appreciation (depreciation) | 184,754,676 |
The aggregate cost above includes prior fiscal year end tax adjustments, if applicable.
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, 2015, 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 | $(24,876,969 | ) | ||
Long-Term | (8,015,734 | ) | ||
Total | $(32,892,703 | ) |
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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 Statement of Changes in Net Assets are presented by class as follows:
From net investment income | ||||||||
Six months ended 9/30/15 | Year ended 3/31/15 | |||||||
Class A | $13,608,248 | $26,009,877 | ||||||
Class B | 376,244 | 765,627 | ||||||
Class C | 2,267,424 | 4,407,687 | ||||||
Class I | 12,933,225 | 22,937,868 | ||||||
Class A1 | 10,602,812 | 21,704,094 | ||||||
Class B1 | 4,412 | 18,463 | ||||||
Total | $39,792,365 | $75,843,616 |
(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, 2016. For the six months ended September 30, 2015, this management fee reduction amounted to $159,304, 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 six months ended September 30, 2015, this management fee reduction amounted to $76,546, which is included in the reduction of total expenses in the Statement of Operations. The management fee incurred for the six months ended September 30, 2015 was equivalent to an annual effective rate of 0.38% 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, excluding 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%
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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, 2016. For the six months ended September 30, 2015, this reduction amounted to $354,450, which 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 $42,332 and $2,025 for the six months ended September 30, 2015, 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.
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% | $970,632 | |||||||||||||||
Class B | 0.75% | 0.25% | 1.00% | 1.00% | 136,535 | |||||||||||||||
Class C | 0.75% | 0.25% | 1.00% | 1.00% | 825,929 | |||||||||||||||
Class B1 | 0.75% | 0.25% | 1.00% | 0.77% | 1,475 | |||||||||||||||
Total Distribution and Service Fees | $1,934,571 |
(d) | In accordance with the distribution plan for certain classes, the fund pays distribution and/or service fees equal to these annual percentage rates of each class’s average daily net assets. The distribution and service fee rates disclosed by class represent the current rates in effect at the end of the reporting period. Any rate changes, if applicable, are detailed below. |
(e) | The annual effective rates represent actual fees incurred under the distribution plan for the six months ended September 30, 2015 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, 2016. For the six months ended September 30, 2015, this reduction amounted to $334 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 six months ended September 30, 2015, this rebate amounted to $10,886 and $16 for Class A and Class C, respectively, and is included in the reduction of total expenses in the Statement of Operations. |
Certain Class A and Class A1 shares are subject to a contingent deferred sales charge (CDSC) in the event of a shareholder redemption within 18 months of purchase. 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
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of a shareholder redemption within six years of purchase. All contingent deferred sales charges are paid to MFD and during the six months ended September 30, 2015, were as follows:
Amount | ||||
Class A | $10,044 | |||
Class B | 17,704 | |||
Class C | 8,874 | |||
Class A1 | — | |||
Class B1 | 391 |
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 six months ended September 30, 2015, the fee was $102,823, which equated to 0.0093% 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 which may be paid to affiliated and unaffiliated service providers. For the six months ended September 30, 2015, these out-of-pocket expenses, sub-accounting and other shareholder servicing costs amounted to $838,542.
Administrator – MFS provides certain financial, legal, shareholder communications, compliance, and other administrative services to the fund. Under an administrative services agreement, the fund 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 six months ended September 30, 2015 was equivalent to an annual effective rate of 0.0160% 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 $1,960 and is included in “Independent Trustees’ compensation” in the Statement of Operations for the six months ended September 30, 2015. The liability for deferred retirement benefits payable to certain independent Trustees under the DB plan amounted to $19,271 at September 30, 2015, 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 a service agreement (the ISO Agreement) which provides for payment of fees
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solely by the funds to Tarantino LLC in return for the provision of services of an Independent Senior Officer (ISO) for the funds. Frank L. Tarantino serves as the ISO and is an officer of the funds and the sole member of Tarantino LLC. The funds can terminate the ISO Agreement with Tarantino LLC at any time under the terms of the ISO Agreement. For the six months ended September 30, 2015, the fee paid by the fund under this agreement was $2,458 and is included in “Miscellaneous” expense in the Statement of Operations. MFS has agreed to bear all expenses associated with office space, other administrative support, and supplies provided to the ISO.
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. 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.
On September 9, 2015, MFS redeemed 55 shares of Class I for an aggregate amount of $478.
(4) Portfolio Securities
For the six months ended September 30, 2015, purchases and sales of investments, other than short-term obligations, aggregated $267,144,591 and $418,729,853, 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:
Six months ended 9/30/15 | Year ended 3/31/15 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Shares sold | ||||||||||||||||
Class A | 7,409,127 | $64,702,804 | 15,837,710 | $138,752,687 | ||||||||||||
Class B | 147,459 | 1,286,324 | 237,241 | 2,082,056 | ||||||||||||
Class C | 1,213,379 | 10,632,333 | 2,551,278 | 22,423,106 | ||||||||||||
Class I | 8,855,883 | 77,267,935 | 20,712,389 | 180,707,432 | ||||||||||||
Class A1 | 301,680 | 2,636,802 | 553,055 | 4,842,592 | ||||||||||||
Class B1 | 1,205 | 10,573 | 2,023 | 17,714 | ||||||||||||
17,928,733 | $156,536,771 | 39,893,696 | $348,825,587 | |||||||||||||
Shares issued to shareholders in reinvestment of distributions | ||||||||||||||||
Class A | 1,453,160 | $12,688,114 | 2,720,057 | $23,851,304 | ||||||||||||
Class B | 38,183 | 333,776 | 76,521 | 671,674 | ||||||||||||
Class C | 224,398 | 1,966,026 | 424,331 | 3,733,240 | ||||||||||||
Class I | 1,339,047 | 11,677,767 | 2,312,424 | 20,265,429 | ||||||||||||
Class A1 | 985,261 | 8,607,840 | 1,963,569 | 17,220,966 | ||||||||||||
Class B1 | 414 | 3,621 | 1,467 | 12,841 | ||||||||||||
4,040,463 | $35,277,144 | 7,498,369 | $65,755,454 |
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Six months ended 9/30/15 | Year ended 3/31/15 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Shares reacquired | ||||||||||||||||
Class A | (8,083,617 | ) | $(70,532,944 | ) | (17,045,156 | ) | $(148,706,171 | ) | ||||||||
Class B | (229,227 | ) | (2,001,732 | ) | (472,755 | ) | (4,138,153 | ) | ||||||||
Class C | (1,255,272 | ) | (10,988,642 | ) | (3,266,864 | ) | (28,578,647 | ) | ||||||||
Class I | (32,273,831 | ) | (281,016,323 | ) | (10,293,227 | ) | (89,765,156 | ) | ||||||||
Class A1 | (2,917,160 | ) | (25,474,861 | ) | (6,083,099 | ) | (53,181,630 | ) | ||||||||
Class B1 | (13,049 | ) | (114,528 | ) | (77,013 | ) | (672,681 | ) | ||||||||
(44,772,156 | ) | $(390,129,030 | ) | (37,238,114 | ) | $(325,042,438 | ) | |||||||||
Net change | ||||||||||||||||
Class A | 778,670 | $6,857,974 | 1,512,611 | $13,897,820 | ||||||||||||
Class B | (43,585 | ) | (381,632 | ) | (158,993 | ) | (1,384,423 | ) | ||||||||
Class C | 182,505 | 1,609,717 | (291,255 | ) | (2,422,301 | ) | ||||||||||
Class I | (22,078,901 | ) | (192,070,621 | ) | 12,731,586 | 111,207,705 | ||||||||||
Class A1 | (1,630,219 | ) | (14,230,219 | ) | (3,566,475 | ) | (31,118,072 | ) | ||||||||
Class B1 | (11,430 | ) | (100,334 | ) | (73,523 | ) | (642,126 | ) | ||||||||
(22,802,960 | ) | $(198,315,115 | ) | 10,153,951 | $89,538,603 |
(6) Line of Credit
The fund and certain other funds managed by MFS participate in a $1.25 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 Overnight Federal Reserve funds rate or daily 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 Overnight Federal Reserve funds rate plus an agreed upon spread. For the six months ended September 30, 2015, the fund’s commitment fee and interest expense were $3,541 and $0, respectively, and are included in “Miscellaneous” expense in the Statement of Operations.
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(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 | 87,268,558 | 390,904,429 | (452,407,718 | ) | 25,765,269 | |||||||||||
Underlying Affiliated Fund | Realized Gain (Loss) | Capital Gain Distributions | Dividend Income | Ending Value | ||||||||||||
MFS Institutional Money Market Portfolio | $— | $— | $31,632 | $25,765,269 |
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BOARD REVIEW OF INVESTMENT ADVISORY AGREEMENT
The Investment Company Act of 1940 requires that both the full Board of Trustees and a majority of the non-interested (“independent”) Trustees, voting separately, annually approve the continuation of the Fund’s investment advisory agreement with MFS. The Trustees consider matters bearing on the Fund and its advisory arrangements at their meetings throughout the year, including a review of performance data at each regular meeting. In addition, the independent Trustees met several times over the course of three months beginning in May and ending in July, 2015 (“contract review meetings”) for the specific purpose of considering whether to approve the continuation of the investment advisory agreement for the Fund and the other investment companies that the Board oversees (the “MFS Funds”). The independent Trustees were assisted in their evaluation of the Fund’s investment advisory agreement by independent legal counsel, from whom they received separate legal advice and with whom they met separately from MFS during various contract review meetings. The independent Trustees were also assisted in this process by the MFS Funds’ Independent Senior Officer, a senior officer appointed by and reporting to the independent Trustees.
In connection with their deliberations regarding the continuation of the investment advisory agreement, the Trustees, including the independent Trustees, considered such information and factors as they believed, in light of the legal advice furnished to them and their own business judgment, to be relevant. The investment advisory agreement for the Fund was considered separately, although the Trustees also took into account the common interests of all MFS Funds in their review. As described below, the Trustees considered the nature, quality, and extent of the various investment advisory, administrative, and shareholder services performed by MFS under the existing investment advisory agreement and other arrangements with the Fund.
In connection with their contract review meetings, the Trustees received and relied upon materials that included, among other items: (i) information provided by Lipper Inc., an independent third party, on the investment performance of the Fund for various time periods ended December 31, 2014 and the investment performance of a group of funds with substantially similar investment classifications/objectives (the “Lipper performance universe”), (ii) information provided by Lipper Inc. on the Fund’s advisory fees and other expenses and the advisory fees and other expenses of comparable funds identified by Lipper Inc. (the “Lipper expense group”), (iii) information provided by MFS on the advisory fees of comparable portfolios of other clients of MFS, including institutional separate accounts and other clients, (iv) information as to whether and to what extent applicable expense waivers, reimbursements or fee “breakpoints” are observed for the Fund, (v) information regarding MFS’ financial results and financial condition, including MFS’ and certain of its affiliates’ estimated profitability from services performed for the Fund and the MFS Funds as a whole, and compared to MFS’ institutional business, (vi) MFS’ views regarding the outlook for the mutual fund industry and the strategic business plans of MFS, (vii) descriptions of various functions performed by MFS for the Funds, such as compliance monitoring and portfolio trading practices, and (viii) information regarding the overall organization of MFS, including information about MFS’ senior management and other personnel providing investment advisory, administrative and other services to
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the Fund and the other MFS Funds. The comparative performance, fee and expense information prepared and provided by Lipper Inc. was not independently verified and the independent Trustees did not independently verify any information provided to them by MFS.
The Trustees’ conclusion as to the continuation of the investment advisory agreement was based on a comprehensive consideration of all information provided to the Trustees and not the result of any single factor. Some of the factors that figured particularly in the Trustees’ deliberations are described below, although individual Trustees may have evaluated the information presented differently from one another, giving different weights to various factors. It is also important to recognize that the fee arrangements for the Fund and other MFS Funds are the result of years of review and discussion between the independent Trustees and MFS, that certain aspects of such arrangements may receive greater scrutiny in some years than in others, and that the Trustees’ conclusions may be based, in part, on their consideration of these same arrangements during the course of the year and in prior years.
Based on information provided by Lipper Inc. and MFS, the Trustees reviewed the Fund’s total return investment performance as well as the performance of peer groups of funds over various time periods. The Trustees placed particular emphasis on the total return performance of the Fund’s Class A shares in comparison to the performance of funds in its Lipper performance universe over the three-year period ended December 31, 2014, which the Trustees believed was a long enough period to reflect differing market conditions. The total return performance of the Fund’s Class A shares was in the 3rd quintile relative to the other funds in the universe for this three-year period (the 1st quintile being the best performers and the 5th quintile being the worst performers). The total return performance of the Fund’s Class A shares was in the 2nd quintile for each of the one- and five-year periods ended December 31, 2014 relative to the Lipper performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.
In the course of their deliberations, the Trustees took into account information provided by MFS in connection with the contract review meetings, as well as during investment review meetings conducted with portfolio management personnel during the course of the year regarding the Fund’s performance. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the investment advisory agreement, that they were satisfied with MFS’ responses and efforts relating to investment performance.
In assessing the reasonableness of the Fund’s advisory fee, the Trustees considered, among other information, the Fund’s advisory fee and the total expense ratio of the Fund’s Class A shares as a percentage of average daily net assets and the advisory fee and total expense ratios of peer groups of funds based on information provided by Lipper Inc. The Trustees considered that MFS currently observes an expense limitation for the Fund, which may not be changed without the Trustees’ approval. The Trustees also considered that, according to the Lipper data (which takes into account any fee reductions or expense limitations that were in effect during the Fund’s last fiscal year),
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the Fund’s effective advisory fee rate was lower than the Lipper expense group median and the Fund’s total expense ratio was approximately at the Lipper expense group median.
The Trustees also considered the advisory fees charged by MFS to any institutional separate accounts advised by MFS (“separate accounts”) and unaffiliated investment companies for which MFS serves as subadviser (“subadvised funds”) that have comparable investment strategies to the Fund. In comparing these fees, the Trustees considered information provided by MFS as to the generally broader scope of services provided by MFS to the Fund, as well as the more extensive regulatory burdens imposed on MFS in managing the Fund, in comparison to separate accounts and subadvised funds. The Trustees also considered the higher demands placed on MFS’ investment personnel and trading infrastructure as a result of the daily cash in-flows and out-flows of the Fund in comparison to separate accounts.
The Trustees also considered whether the Fund may benefit from any economies of scale in the management of the Fund in the event of growth in assets of the Fund and/or growth in assets of the MFS Funds as a whole. They noted that MFS has agreed in writing to reduce its advisory fee on the Fund’s average daily net assets over $1.3 billion and $2 billion, which may not be changed without the Trustees’ approval. The Trustees also noted that MFS has agreed in writing to waive a portion of the management fees of certain MFS Funds, including the Fund, if the total combined assets of certain funds within the MFS Funds’ complex increase above agreed upon thresholds (the “group fee waiver”), enabling the Fund’s shareholders to share in the benefits from any economies of scale at the complex level. The group fee waiver is reviewed and renewed annually between the Board and MFS. The Trustees concluded that the breakpoints and the group fee waiver were sufficient to allow the Fund to benefit from economies of scale as its assets and overall complex assets grow.
The Trustees also considered information prepared by MFS relating to MFS’ costs and profits with respect to the Fund, the MFS Funds considered as a group, and other investment companies and accounts advised by MFS, as well as MFS’ methodologies used to determine and allocate its costs to the MFS Funds, the Fund and other accounts and products for purposes of estimating profitability.
After reviewing these and other factors described herein, the Trustees concluded, within the context of their overall conclusions regarding the investment advisory agreement, that the advisory fees charged to the Fund represent reasonable compensation in light of the services being provided by MFS to the Fund.
In addition, the Trustees considered MFS’ resources and related efforts to continue to retain, attract and motivate capable personnel to serve the Fund. The Trustees also considered current and developing conditions in the financial services industry, including the presence of large and well-capitalized companies which are spending, and appear to be prepared to continue to spend, substantial sums to engage personnel and to provide services to competing investment companies. In this regard, the Trustees also considered the financial resources of MFS and its ultimate parent, Sun Life Financial Inc. The Trustees also considered the advantages and possible disadvantages to the Fund of having an adviser that also serves other investment companies as well as other accounts.
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The Trustees also considered the nature, quality, cost, and extent of administrative, transfer agency, and distribution services provided to the Fund by MFS and its affiliates under agreements and plans other than the investment advisory agreement, including any 12b-1 fees the Fund pays to MFS Fund Distributors, Inc., an affiliate of MFS. The Trustees also considered the nature, extent and quality of certain other services MFS performs or arranges for on the Fund’s behalf, which may include securities lending programs, directed expense payment programs, class action recovery programs, and MFS’ interaction with third-party service providers, principally custodians and sub-custodians. The Trustees concluded that the various non-advisory services provided by MFS and its affiliates on behalf of the Fund were satisfactory.
The Trustees also considered benefits to MFS from the use of the Fund’s portfolio brokerage commissions, if applicable, to pay for investment research and various other factors. Additionally, the Trustees considered so-called “fall-out benefits” to MFS such as reputational value derived from serving as investment manager to the Fund.
Based on their evaluation of factors that they deemed to be material, including those factors described above, the Board of Trustees, including the independent Trustees, concluded that the Fund’s investment advisory agreement with MFS should be continued for an additional one-year period, commencing August 1, 2015.
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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 “Market Commentary” and “Announcements” sub sections in the “Market Outlooks” section of mfs.com or by clicking on the fund’s name under “Mutual Funds” in the “Products” section of mfs.com.
PROVISION OF FINANCIAL REPORTS AND SUMMARY PROSPECTUSES
The fund produces financial reports every six months and updates its summary prospectus and prospectus annually. To avoid sending duplicate copies of materials to households, only one copy of the fund’s annual and semiannual report and summary prospectus may be mailed to shareholders having the same last name and residential address on the fund’s records. However, any shareholder may contact MFSC (please see back cover for address and telephone number) to request that copies of these reports and summary prospectuses be sent personally to that shareholder.
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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 not amended any provision in its Code of Ethics (the “Code”) that relates to any element of the Code’s definition enumerated in paragraph (b) of Item 2 of this Form N-CSR. The Registrant has not granted a waiver, including an implicit waiver, from any provision of the Code.
ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
Not applicable for semi-annual reports.
ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
Not applicable for semi-annual reports.
ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable to the Registrant.
ITEM 6. | INVESTMENTS |
A schedule of investments for each series 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.
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.
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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. |
(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)* | ROBIN A. STELMACH | |
Robin A. Stelmach, President |
Date: November 13, 2015
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)* | ROBIN A. STELMACH | |
Robin A. Stelmach, President (Principal Executive Officer) |
Date: November 13, 2015
By (Signature and Title)* | DAVID L. DILORENZO | |
David L. DiLorenzo, Treasurer (Principal Financial Officer and Accounting Officer) |
Date: November 13, 2015
* | Print name and title of each signing officer under his or her signature. |