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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-04096
MFS MUNICIPAL SERIES TRUST
(Exact name of registrant as specified in charter)
111 Huntington Avenue, Boston, Massachusetts 02199
(Address of principal executive offices) (Zip code)
Christopher R. Bohane
Massachusetts Financial Services Company
111 Huntington Avenue, Boston, Massachusetts 02199
(Name and address of agents for service)
Registrant’s telephone number, including area code: (617) 954-5000
Date of fiscal year end: March 31
Date of reporting period: March 31, 2018
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ITEM 1. | REPORTS TO STOCKHOLDERS. |
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Annual Report
March 31, 2018
MFS® Municipal Series Trust
For the states of:
Alabama, Arkansas, California, Georgia, Maryland, and Massachusetts
MSTA-ANN
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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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LETTER FROM THE EXECUTIVE CHAIRMAN
Dear Shareholders:
Rising bond yields have led to a measurable uptick in market volatility — a departure from the low-volatility environment that prevailed for much of 2017. In recent months, against this backdrop, global markets have given back some of the strong gains recorded during 2017 and early 2018. Global economic growth remains robust, notwithstanding signs of a modest slowdown over the past few months, particularly in Europe.
Although the U.S. Federal Reserve continues to gradually raise interest rates and shrink its balance sheet, monetary policy remains accommodative around the world, with many central banks taking only tentative steps toward tighter policies. Newly enacted U.S. tax reforms have been welcomed by equity markets, while emerging market economies have benefited from a weaker U.S. dollar.
Around the world, inflation remains largely subdued, but tight labor markets and solid global demand have investors on the lookout for its potential resurgence. Increased U.S. protectionism is also a growing concern, as investors fear that trade friction could disrupt the synchronized rise in global growth.
At MFS®, we believe having a disciplined, long-term investment approach through a full market cycle is essential to capturing the best opportunities while also managing risk. In our view, such a strategy, along with the professional guidance of a financial advisor, will help you reach your investment objectives.
Respectfully,
Robert J. Manning
Executive Chairman
MFS Investment Management
May 16, 2018
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 | 16.5% | |||
Universities – Colleges | 13.1% | |||
State & Local Agencies | 12.4% | |||
Water & Sewer Utility Revenue | 12.3% | |||
General Obligations – General Purpose | 9.2% |
Composition including fixed income credit quality (a)(i) | ||||
AAA | 3.3% | |||
AA | 29.9% | |||
A | 46.7% | |||
BBB | 8.0% | |||
BB | 0.6% | |||
CC | 0.6% | |||
C | 2.1% | |||
D | 0.7% | |||
Not Rated | 7.2% | |||
Cash & Cash Equivalents | 0.9% | |||
Portfolio facts (i) | ||||
Average Duration (d) | 6.0 | |||
Average Effective Maturity (m) | 14.3 yrs. |
Jurisdiction (i) | ||||
Alabama | 75.4% | |||
Puerto Rico | 5.5% | |||
New York | 3.3% | |||
California | 2.7% | |||
Guam | 2.3% | |||
Massachusetts | 1.8% | |||
Illinois | 1.7% | |||
Colorado | 1.2% | |||
Pennsylvania | 1.1% | |||
Florida | 0.8% | |||
New Hampshire | 0.7% | |||
Texas | 0.6% | |||
Virginia | 0.5% | |||
Oklahoma | 0.3% | |||
South Carolina | 0.3% | |||
New Jersey | 0.3% | |||
Indiana | 0.3% | |||
Nebraska | 0.2% | |||
Michigan | 0.1% |
(a) | For all securities other than those specifically described below, ratings are assigned to underlying securities utilizing ratings from Moody’s, Fitch, and Standard & Poor’s rating agencies and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). Securities rated BBB or higher are considered investment grade. All ratings are subject to change. Not Rated includes fixed income securities, including fixed income futures contracts, which have not been rated by any rating agency. The fund may or may not have held all of these instruments on this date. The fund is not rated by these agencies. |
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value due to the interest rate move. |
(i) | For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining 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, they are treated as part of the equity portion of the portfolio.
Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Percentages are based on net assets as of March 31, 2018.
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% | |||
Healthcare Revenue – Hospitals | 15.9% | |||
Water & Sewer Utility Revenue | 13.1% | |||
Sales & Excise Tax Revenue | 11.5% | |||
Utilities – Municipal Owned | 7.5% |
Composition including fixed income credit quality (a)(i) | ||||
AAA | 4.6% | |||
AA | 44.5% | |||
A | 39.4% | |||
BBB | 5.5% | |||
BB | 1.6% | |||
CC | 0.4% | |||
C | 1.7% | |||
D | 1.0% | |||
Not Rated | 1.4% | |||
Cash & Cash Equivalents | (0.1)% | |||
Portfolio facts (i) | ||||
Average Duration (d) | 6.3 | |||
Average Effective Maturity (m) | 14.1 yrs. |
Jurisdiction (i) | ||||
Arkansas | 71.9% | |||
Puerto Rico | 5.8% | |||
Guam | 4.9% | |||
California | 2.8% | |||
New York | 2.5% | |||
Massachusetts | 1.5% | |||
Georgia | 1.3% | |||
Pennsylvania | 1.3% | |||
Illinois | 1.1% | |||
Colorado | 1.1% | |||
Kentucky | 1.0% | |||
Virginia | 0.9% | |||
Texas | 0.8% | |||
Indiana | 0.8% | |||
New Hampshire | 0.6% | |||
New Jersey | 0.5% | |||
Michigan | 0.4% | |||
South Carolina | 0.3% | |||
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 or may not have held all of these instruments on this date. The fund is not rated by these agencies. |
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value due to the interest rate move. |
(i) | For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining 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, they are treated as part of the equity portion of the portfolio.
Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
From time to time Cash & Cash Equivalents may be negative due to timing of cash receipts.
Percentages are based on net assets as of March 31, 2018.
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)
Top five industries (i) | ||||
Healthcare Revenue – Hospitals | 17.8% | |||
General Obligations – Schools | 13.9% | |||
Universities – Colleges | 9.3% | |||
Tax Assessment | 8.3% | |||
General Obligations – General Purpose | 7.5% |
Composition including fixed income credit quality (a)(i) | ||||
AAA | 5.5% | |||
AA | 33.6% | |||
A | 32.1% | |||
BBB | 16.6% | |||
BB | 1.9% | |||
B | 1.1% | |||
CC | 0.3% | |||
C | 2.2% | |||
D | 1.0% | |||
Not Rated | 5.7% | |||
Cash & Cash Equivalents (o) | (0.0)% | |||
Portfolio facts (i) | ||||
Average Duration (d) | 7.1 | |||
Average Effective Maturity (m) | 16.8 yrs. |
Jurisdiction (i) | ||||
California | 91.7% | |||
Puerto Rico | 5.3% | |||
Guam | 1.0% | |||
Illinois | 0.8% | |||
Ohio | 0.6% | |||
Pennsylvania | 0.6% |
(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 or may not have held all of these instruments on this date. The fund is not rated by these agencies. |
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value due to the interest rate move. |
(i) | For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining 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, they are treated as part of the equity portion of the portfolio.
Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
From time to time Cash & Cash Equivalents may be negative due to timing of cash receipts.
Percentages are based on net assets as of March 31, 2018.
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) | ||||
Healthcare Revenue – Hospitals | 19.8% | |||
Universities – Colleges | 19.5% | |||
Water & Sewer Utility Revenue | 15.1% | |||
General Obligations – General Purpose | 7.1% | |||
Utilities – Municipal Owned | 6.6% |
Composition including fixed income credit quality (a)(i) | ||||
AAA | 5.5% | |||
AA | 35.5% | |||
A | 41.8% | |||
BBB | 8.4% | |||
BB | 1.6% | |||
B | 0.1% | |||
CC | 0.5% | |||
C | 1.6% | |||
D | 0.7% | |||
Not Rated | 4.9% | |||
Cash & Cash Equivalents | (0.6)% | |||
Portfolio facts (i) | ||||
Average Duration (d) | 6.1 | |||
Average Effective Maturity (m) | 13.1 yrs. |
Jurisdiction (i) | ||||
Georgia | 78.1% | |||
Puerto Rico | 6.3% | |||
Guam | 2.3% | |||
California | 2.3% | |||
Illinois | 1.8% | |||
New York | 1.6% | |||
Florida | 1.0% | |||
Colorado | 0.9% | |||
Pennsylvania | 0.9% | |||
Tennessee | 0.6% | |||
Massachusetts | 0.6% | |||
Texas | 0.5% | |||
Wisconsin | 0.5% | |||
North Carolina | 0.5% | |||
Kentucky | 0.5% | |||
New Hampshire | 0.4% | |||
Virginia | 0.4% | |||
Oklahoma | 0.3% | |||
Michigan | 0.3% | |||
New Jersey | 0.3% | |||
Indiana | 0.2% | |||
U.S. Virgin Islands | 0.2% | |||
Louisiana | 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 or may not have held all of these instruments on this date. The fund is not rated by these agencies. |
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value due to the interest rate move. |
(i) | For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining 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, they are treated as part of the equity portion of the portfolio.
Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
From time to time Cash & Cash Equivalents may be negative due to timing of cash receipts.
Percentages are based on net assets as of March 31, 2018.
The portfolio is actively managed and current holdings may be different.
5
Table of Contents
Portfolio Composition – continued
MFS Maryland Municipal Bond Fund
Portfolio structure (i)
Top five industries (i) | ||||
Healthcare Revenue – Hospitals | 21.9% | |||
General Obligations – General Purpose | 13.6% | |||
Universities – Colleges | 8.0% | |||
Water & Sewer Utility Revenue | 7.2% | |||
State & Agency – Other | 6.9% |
Composition including fixed income credit quality (a)(i) | ||||
AAA | 14.6% | |||
AA | 24.1% | |||
A | 30.7% | |||
BBB | 16.5% | |||
BB | 1.9% | |||
CC | 0.1% | |||
C | 2.2% | |||
D | 0.5% | |||
Not Rated | 8.5% | |||
Cash & Cash Equivalents | 0.9% | |||
Portfolio facts (i) | ||||
Average Duration (d) | 5.9 | |||
Average Effective Maturity (m) | 14.8 yrs. |
Jurisdiction (i) | ||||
Maryland | 73.9% | |||
Puerto Rico | 6.3% | |||
Washington DC | 3.0% | |||
Illinois | 1.9% | |||
New York | 1.9% | |||
Guam | 1.6% | |||
Tennessee | 1.3% | |||
California | 1.2% | |||
Kentucky | 1.2% | |||
Colorado | 1.1% | |||
Indiana | 1.0% | |||
Pennsylvania | 0.8% | |||
Florida | 0.7% | |||
New Hampshire | 0.6% | |||
Texas | 0.6% | |||
Georgia | 0.5% | |||
U.S. Virgin Islands | 0.5% | |||
Washington | 0.5% | |||
Nebraska | 0.2% | |||
Virginia | 0.1% | |||
Michigan | 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 or may not have held all of these instruments on this date. The fund is not rated by these agencies. |
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value due to the interest rate move. |
(i) | For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining 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, they are treated as part of the equity portion of the portfolio.
Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Percentages are based on net assets as of March 31, 2018.
The portfolio is actively managed and current holdings may be different.
6
Table of Contents
Portfolio Composition – continued
MFS Massachusetts Municipal Bond Fund
Portfolio structure (i)
Top five industries (i) | ||||
Universities – Colleges | 20.3% | |||
Healthcare Revenue – Hospitals | 16.8% | |||
General Obligations – General Purpose | 9.9% | |||
Miscellaneous Revenue – Other | 6.9% | |||
State & Local Agencies | 6.1% |
Composition including fixed income credit quality (a)(i) | ||||
AAA | 4.7% | |||
AA | 42.4% | |||
A | 23.6% | |||
BBB | 18.9% | |||
BB | 3.6% | |||
B | 0.2% | |||
CC | 0.7% | |||
C | 1.9% | |||
D | 0.6% | |||
Not Rated | 3.3% | |||
Cash & Cash Equivalents | 0.1% | |||
Portfolio facts (i) | ||||
Average Duration (d) | 6.7 | |||
Average Effective Maturity (m) | 16.0 yrs. |
Jurisdiction (i) | ||||
Massachusetts | 82.8% | |||
Puerto Rico | 5.3% | |||
Illinois | 2.2% | |||
California | 1.9% | |||
Guam | 1.6% | |||
Pennsylvania | 0.9% | |||
Colorado | 0.9% | |||
Florida | 0.9% | |||
Tennessee | 0.8% | |||
Texas | 0.6% | |||
Kentucky | 0.5% | |||
New York | 0.5% | |||
New Hampshire | 0.3% | |||
Louisiana | 0.2% | |||
Washington | 0.2% | |||
New Jersey | 0.2% | |||
Wisconsin | 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 or may not have held all of these instruments on this date. The fund is not rated by these agencies. |
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value due to the interest rate move. |
(i) | For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining 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, they are treated as part of the equity portion of the portfolio.
Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Percentages are based on net assets as of March 31, 2018.
The portfolio is actively managed and current holdings may be different.
7
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Summary of Results
For the twelve months ended March 31, 2018, Class A shares, at net asset value, of the municipal bond funds of Alabama, Arkansas, Georgia, Maryland and Massachusetts underperformed the Bloomberg Barclays Municipal Bond Index, while the municipal bond fund of California outperformed the same benchmark over the same period. The performance for the individual funds and the benchmark are set forth in the Performance Summary.
Market Environment
Despite continued solid global economic growth, financial markets were buffeted by increased volatility late in the reporting period. The increase in volatility dented what had been high levels of investor confidence, leading to a correction in what had been elevated valuations. Valuations are now more in line with long-term averages after the recent bout of market weakness. So far, the rise in volatility has not disrupted the synchronized upturn in growth, though developed markets showed signs of a modest slowdown in the expansion’s pace in early 2018.
During the period, the US Federal Reserve (“Fed”) raised rates by 75 basis points, bringing the total number of hikes to six since the central bank began to normalize monetary policy in late 2015. The growth rate in the US, eurozone and Japan remains above potential, though inflation remains contained, particularly outside the US. In the middle of the period, the European Central Bank announced that it was extending its asset purchase program until the end of September 2018, but cut its pace of asset purchases in half as economic conditions improved. Both the Bank of England (“BOE”) and the Bank of Canada raised rates during the period, the BOE for the first time in a decade. The European political backdrop became a bit less volatile late in the period, with populist parties gaining an increased share of the vote, but thus far falling short of majorities in eurozone member states.
Bond yields rose in most developed economies during the period, but they remain low by historic standards. Credit spreads remain relatively tight, but widened modestly late in the period as market volatility increased. Increasing concern over growing global trade friction risks weighed on the strong global trade volumes seen during the period’s second half. The US announced broad-based tariffs on imports of steel and aluminum during the period, though some nations have been exempted, and later targeted China for tariffs, in retaliation for what it believes is abuse of intellectual property rights. Growing fears of wider trade skirmishes have added to volatility. Concerns that US technology giants have been careless with private user data are contributing to the volatility as well.
10-Year US Treasury yields were largely range-bound during the first half of the reporting period before spiking higher during the latter half of the reporting period, with most of the rise occurring during the first quarter of 2018. The surge in yields was primarily due to the passage of the Tax Cuts and Jobs Act, which cut individual and corporate tax rates, as well as a larger-than-expected fiscal spending package. This led investors to increase expectations for better economic growth and a potential increase in inflationary pressures, pushing bond yields higher. Yields moderated, however, towards the end of the reporting period due to increased equity market volatility and concerns about escalating trade wars.
The Fed, continuing its efforts to normalize monetary policy, raised the Federal Funds rate three times during the reporting period, including one rate increase under new Federal Reserve Chairman Jerome Powell, who replaced Janet Yellen in February 2018. Generally, markets viewed the transition to the new Fed chairman without much concern – having served as a Fed governor since 2012, Powell is a known quantity among investors.
Another major event that occurred during the period was Hurricane Maria making landfall on the island of Puerto Rico. The hurricane had a devastating impact on the island’s residents and the government’s ability to provide basic human services such as water, power and healthcare. The prospects for long-term recovery are still uncertain and the government and many of its agencies and instrumentalities, which were already operating under an oversight board established by the Puerto Rico Oversight, Management and Economic Stability Act, are in the process of amending their financial plans in light of the recent events. As such, prices of the majority of debt issued from the jurisdiction of Puerto Rico, both insured and uninsured, declined in the weeks following the Hurricane, but have since recovered somewhat.
For the reporting period, the municipal market largely took its cue from the direction of US Treasury rates. Yields were largely range-bound early in the period, and then accelerated higher towards the end of the reporting period, pushed higher by the same factors impacting US Treasury yields – optimism over stronger US growth in the wake of the tax reform and increased fiscal spending. Yields moderated in the last six weeks of the reporting period amid an increase in equity market volatility and concerns about the impact of a trade war on the global economy.
Against this backdrop, the municipal yield curve flattened, with yields on shorter-dated municipal bonds rising more than yields on longer-dated bonds. As a result, the broader US investment grade municipal bond market provided modestly positive returns with long-dated bonds dramatically outperforming short-dated bonds, and lower-quality bonds outperforming higher-quality.
The US economic backdrop appears supportive of municipal bond fundamentals; valuations appear tight within the context of longer-term municipal performance, but on a tax-adjusted basis, municipal bonds offer satisfactory relative value compared with broader fixed income markets.
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Management Review – continued
Factors Affecting Performance
Within all funds, an out-of-benchmark exposure to Ambac-insured Puerto Rican bonds hindered performance relative to the Bloomberg Barclays Municipal Bond Index.
In contrast, a shorter relative duration (d) stance in all funds, with the exception of the municipal bond funds of California and Massachusetts, positively impacted relative performance as interest rates rose during the reporting period. In all funds, a larger-than-benchmark exposure to the health care sector, and lesser exposure to general obligation bonds issued by the states, also helped relative results. Within all funds, with the exception of the municipal bond fund of Georgia, an out-of-benchmark exposure to non-rated (r) securities, and a lesser exposure to “AA” rated securities, across all funds, also aided relative returns. Lastly, within the municipal bond fund of California, strong security selection in the local sector, and the fund’s yield curve (y) positioning, particularly its greater exposure to shifts in the long end of the yield curve, bolstered relative performance and helped the fund outperform the benchmark.
Respectfully,
Portfolio Manager(s)
Michael Dawson
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value. |
(r) | Bonds rated “BBB”, “Baa”, or higher are considered investment grade; bonds rated “BB”, “Ba”, or below are considered non-investment grade. The sources for bond quality ratings are Moody’s Investors Service, Standard & Poor’s and Fitch, Inc. and are applied using the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). For securities which are not rated by any of the three agencies, the security is considered Not Rated. |
(y) | A yield curve graphically depicts the yields of different maturity bonds of the same credit quality and type; a normal yield curve is upward sloping, with short-term rates lower than long-term rates. |
The views expressed in this report are those of the portfolio manager(s) only through the end of the period of the report as stated on the cover and do not necessarily reflect the views of MFS or any other person in the MFS organization. These views are subject to change at any time based on market or other conditions, and MFS disclaims any responsibility to update such views. These views may not be relied upon as investment advice or an indication of trading intent on behalf of any MFS portfolio. References to specific securities are not recommendations of such securities, and may not be representative of any MFS portfolio’s current or future investments.
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PERFORMANCE SUMMARY THROUGH 3/31/18
The following charts illustrate a representative class of each fund’s historical performance in comparison to its benchmark(s). Performance results include the deduction of the maximum applicable sales charge and reflect the percentage change in net asset value, including reinvestment of dividends and capital gains distributions. Each fund's results have been compared to the Bloomberg Barclays Municipal Bond Index, a market capitalization-weighted index that measures the performance of the tax-exempt bond market. However, while this index is considered the benchmark for the performance of municipal bond funds, it is comprised of municipal bonds issued within the 50 states and the District of Columbia as well as U.S. territories and possessions such as Guam, Puerto Rico, and the Virgin Islands, while each of the funds invests a large percentage of its assets in municipal issuers of the state that is in the fund’s name. The performance of other share classes will be greater than or less than that of the class depicted below. Benchmarks are unmanaged and may not be invested in directly. Benchmark returns do not reflect sales charges, commissions or expenses. (See Notes to Performance Summary.)
Performance data shown represents past performance and is no guarantee of future results. Investment return and principal value fluctuate so your shares, when sold, may be worth more or less than the original cost; current performance may be lower or higher than quoted. The performance shown does not reflect the deduction of taxes, if any, that a shareholder would pay on fund distributions or the redemption of fund shares.
MFS Alabama Municipal Bond Fund
Growth of a Hypothetical $10,000 Investment
Total Returns through 3/31/18
Average annual without sales charge
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr | Life (t) | |||||||||
A | 2/01/90 | 2.35% | 2.27% | 3.88% | N/A | |||||||||
B | 9/07/93 | 1.59% | 1.50% | 3.10% | N/A | |||||||||
I | 4/01/16 | 2.55% | N/A | N/A | 1.37% | |||||||||
R6 | 8/01/17 | N/A | N/A | N/A | 0.25% | |||||||||
Comparative benchmark(s) | ||||||||||||||
Bloomberg Barclays Municipal Bond Index (f) | 2.66% | 2.73% | 4.40% | N/A | ||||||||||
Average annual with sales charge | ||||||||||||||
A With Initial Sales Charge (4.25%) | (2.00)% | 1.38% | 3.43% | N/A | ||||||||||
B With CDSC (Declining over six years from 4% to 0%) (v) | (2.37)% | 1.15% | 3.10% | N/A |
CDSC – Contingent Deferred Sales Charge.
Class I and R6 shares do not have a sales charge.
(f) | Source: FactSet Research Systems Inc. |
(t) | For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.) |
(v) | Assuming redemption at the end of the applicable period. |
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Performance Summary – continued
MFS Arkansas Municipal Bond Fund
Growth of a Hypothetical $10,000 Investment
Total Returns through 3/31/18
Average annual without sales charge
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr | Life (t) | |||||||||
A | 2/03/92 | 2.12% | 1.97% | 3.58% | N/A | |||||||||
B | 9/07/93 | 1.47% | 1.21% | 2.79% | N/A | |||||||||
I | 4/01/16 | 2.32% | N/A | N/A | 1.01% | |||||||||
R6 | 8/01/17 | N/A | N/A | N/A | 0.09% | |||||||||
Comparative benchmark(s) | ||||||||||||||
Bloomberg Barclays Municipal Bond Index (f) | 2.66% | 2.73% | 4.40% | N/A | ||||||||||
Average annual with sales charge | ||||||||||||||
A With Initial Sales Charge (4.25%) | (2.22)% | 1.09% | 3.13% | N/A | ||||||||||
B With CDSC (Declining over six years from 4% to 0%) (v) | (2.50)% | 0.84% | 2.79% | N/A |
CDSC – Contingent Deferred Sales Charge.
Class I and R6 shares do not have a sales charge.
(f) | Source: FactSet Research Systems Inc. |
(t) | For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.) |
(v) | Assuming redemption at the end of the applicable period. |
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Performance Summary – continued
MFS California Municipal Bond Fund
Growth of a Hypothetical $10,000 Investment
Total Returns through 3/31/18
Average annual without sales charge
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr | Life (t) | |||||||||
A | 6/18/85 | 3.47% | 3.37% | 4.84% | N/A | |||||||||
B | 9/07/93 | 2.69% | 2.59% | 4.04% | N/A | |||||||||
C | 1/03/94 | 2.54% | 2.44% | 3.89% | N/A | |||||||||
I | 4/01/16 | 3.63% | N/A | N/A | 1.90% | |||||||||
R6 | 8/01/17 | N/A | N/A | N/A | 0.61% | |||||||||
Comparative benchmark(s) | ||||||||||||||
Bloomberg Barclays Municipal Bond Index (f) | 2.66% | 2.73% | 4.40% | N/A | ||||||||||
Average annual with sales charge | ||||||||||||||
A With Initial Sales Charge (4.25%) | (0.93)% | 2.48% | 4.38% | N/A | ||||||||||
B With CDSC (Declining over six years from 4% to 0%) (v) | (1.30)% | 2.23% | 4.04% | N/A | ||||||||||
C With CDSC (1% for 12 months) (v) | 1.54% | 2.44% | 3.89% | N/A |
CDSC – Contingent Deferred Sales Charge.
Class I and R6 shares do not have a sales charge.
(f) | Source: FactSet Research Systems Inc. |
(t) | For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.) |
(v) | Assuming redemption at the end of the applicable period. |
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Performance Summary – continued
MFS Georgia Municipal Bond Fund
Growth of a Hypothetical $10,000 Investment
Total Returns through 3/31/18
Average annual without sales charge
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr | Life (t) | |||||||||
A | 6/06/88 | 2.15% | 2.11% | 3.81% | N/A | |||||||||
B | 9/07/93 | 1.40% | 1.35% | 3.02% | N/A | |||||||||
I | 4/01/16 | 2.40% | N/A | N/A | 1.29% | |||||||||
R6 | 8/01/17 | N/A | N/A | N/A | (0.05)% | |||||||||
Comparative benchmark(s) | ||||||||||||||
Bloomberg Barclays Municipal Bond Index (f) | 2.66% | 2.73% | 4.40% | N/A | ||||||||||
Average annual with sales charge | ||||||||||||||
A With Initial Sales Charge (4.25%) | (2.19)% | 1.23% | 3.36% | N/A | ||||||||||
B With CDSC (Declining over six years from 4% to 0%) (v) | (2.56)% | 0.99% | 3.02% | N/A |
CDSC – Contingent Deferred Sales Charge.
Class I and R6 shares do not have a sales charge.
(f) | Source: FactSet Research Systems Inc. |
(t) | For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.) |
(v) | Assuming redemption at the end of the applicable period. |
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Performance Summary – continued
MFS Maryland Municipal Bond Fund
Growth of a Hypothetical $10,000 Investment
Total Returns through 3/31/18
Average annual without sales charge
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr | Life (t) | |||||||||
A | 10/31/84 | 2.39% | 2.00% | 3.74% | N/A | |||||||||
B | 9/07/93 | 1.62% | 1.24% | 2.97% | N/A | |||||||||
I | 4/01/16 | 2.62% | N/A | N/A | 1.70% | |||||||||
R6 | 8/01/17 | N/A | N/A | N/A | 0.35% | |||||||||
Comparative benchmark(s) | ||||||||||||||
Bloomberg Barclays Municipal Bond Index (f) | 2.66% | 2.73% | 4.40% | N/A | ||||||||||
Average annual with sales charge | ||||||||||||||
A With Initial Sales Charge (4.25%) | (1.96)% | 1.12% | 3.29% | N/A | ||||||||||
B With CDSC (Declining over six years from 4% to 0%) (v) | (2.34)% | 0.88% | 2.97% | N/A |
CDSC – Contingent Deferred Sales Charge.
Class I and R6 shares do not have a sales charge.
(f) | Source: FactSet Research Systems Inc. |
(t) | For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.) |
(v) | Assuming redemption at the end of the applicable period. |
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Performance Summary – continued
MFS Massachusetts Municipal Bond Fund
Growth of a Hypothetical $10,000 Investment
Total Returns through 3/31/18
Average annual without sales charge
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr | Life (t) | |||||||||
A | 4/09/85 | 2.60% | 2.24% | 4.03% | N/A | |||||||||
B | 9/07/93 | 1.81% | 1.45% | 3.25% | N/A | |||||||||
I | 4/01/16 | 2.76% | N/A | N/A | 1.53% | |||||||||
R6 | 8/01/17 | N/A | N/A | N/A | 0.26% | |||||||||
Comparative benchmark(s) | ||||||||||||||
Bloomberg Barclays Municipal Bond Index (f) | 2.66% | 2.73% | 4.40% | N/A | ||||||||||
Average annual with sales charge | ||||||||||||||
A With Initial Sales Charge (4.25%) | (1.76)% | 1.35% | 3.58% | N/A | ||||||||||
B With CDSC (Declining over six years from 4% to 0%) (v) | (2.14)% | 1.10% | 3.25% | N/A |
CDSC – Contingent Deferred Sales Charge.
Class I and R6 shares do not have a sales charge.
(f) | Source: FactSet Research Systems Inc. |
(t) | For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.) |
(v) | Assuming redemption at the end of the applicable period. |
Benchmark Definition(s)
Bloomberg Barclays Municipal Bond Index – a market capitalization-weighted index that measures the performance of the tax-exempt bond market.
It is not possible to invest directly in an index.
Notes to Performance Summary
Average annual total return represents the average annual change in value for each share class for the periods presented. Life returns are presented where the share class has less than 10 years of performance history and represent the average annual total return from the class inception date to the stated period end date. As the fund’s share classes may have different inception dates, the life returns may represent different time periods and may not be comparable. As a result, no comparative benchmark performance information is provided for life periods.
Performance results reflect any applicable expense subsidies and waivers in effect during the periods shown. Without such subsidies and waivers each fund’s performance results would be less favorable. Please see the prospectus and financial statements for complete details.
Performance results do not include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles and may differ from amounts reported in the financial highlights.
A portion of income may be subject to state, federal, and/or alternative minimum tax. Capital gains, if any, are subject to a capital gains tax.
From time to time the funds may receive proceeds from litigation settlements, without which performance would be lower.
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Fund expenses borne by the shareholders during the period, October 1, 2017 through March 31, 2018
As a shareholder of the funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on certain purchase or redemption payments, and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the funds and to compare these costs with the ongoing costs of investing in other mutual funds.
These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period
October 1, 2017 through March 31, 2018.
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 Ratio | Beginning Account Value 10/01/17 | Ending Account Value 3/31/18 | Expenses Paid During Period (p) 10/01/17-3/31/18 | ||||||||||||||
A | Actual | 0.90% | $1,000.00 | $994.96 | $4.48 | |||||||||||||
Hypothetical (h) | 0.90% | $1,000.00 | $1,020.44 | $4.53 | ||||||||||||||
B | Actual | 1.65% | $1,000.00 | $991.25 | $8.19 | |||||||||||||
Hypothetical (h) | 1.65% | $1,000.00 | $1,016.70 | $8.30 | ||||||||||||||
I | Actual | 0.65% | $1,000.00 | $996.13 | $3.23 | |||||||||||||
Hypothetical (h) | 0.65% | $1,000.00 | $1,021.69 | $3.28 | ||||||||||||||
R6 | Actual | 0.58% | $1,000.00 | $996.46 | $2.89 | |||||||||||||
Hypothetical (h) | 0.58% | $1,000.00 | $1,022.04 | $2.92 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
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Expense Tables – continued
MFS ARKANSAS MUNICIPAL BOND FUND
Share Class | Annualized Expense Ratio | Beginning Account Value 10/01/17 | Ending Account Value 3/31/18 | Expenses Paid During 10/01/17-3/31/18 | ||||||||||||||
A | Actual | 0.77% | $1,000.00 | $994.08 | $3.83 | |||||||||||||
Hypothetical (h) | 0.77% | $1,000.00 | $1,021.09 | $3.88 | ||||||||||||||
B | Actual | 1.52% | $1,000.00 | $990.42 | $7.54 | |||||||||||||
Hypothetical (h) | 1.52% | $1,000.00 | $1,017.35 | $7.64 | ||||||||||||||
I | Actual | 0.67% | $1,000.00 | $994.40 | $3.33 | |||||||||||||
Hypothetical (h) | 0.67% | $1,000.00 | $1,021.59 | $3.38 | ||||||||||||||
R6 | Actual | 0.61% | $1,000.00 | $995.83 | $3.04 | |||||||||||||
Hypothetical (h) | 0.61% | $1,000.00 | $1,021.89 | $3.07 |
MFS CALIFORNIA MUNICIPAL BOND FUND
Share Class | Annualized Expense Ratio | Beginning Account Value 10/01/17 | Ending Account Value 3/31/18 | Expenses Paid During Period (p) 10/01/17-3/31/18 | ||||||||||||||
A | Actual | 0.71% | $1,000.00 | $999.11 | $3.54 | |||||||||||||
Hypothetical (h) | 0.71% | $1,000.00 | $1,021.39 | $3.58 | ||||||||||||||
B | Actual | 1.46% | $1,000.00 | $993.75 | $7.26 | |||||||||||||
Hypothetical (h) | 1.46% | $1,000.00 | $1,017.65 | $7.34 | ||||||||||||||
C | Actual | 1.61% | $1,000.00 | $993.05 | $8.00 | |||||||||||||
Hypothetical (h) | 1.61% | $1,000.00 | $1,016.90 | $8.10 | ||||||||||||||
I | Actual | 0.61% | $1,000.00 | $998.45 | $3.04 | |||||||||||||
Hypothetical (h) | 0.61% | $1,000.00 | $1,021.89 | $3.07 | ||||||||||||||
R6 | Actual | 0.55% | $1,000.00 | $998.81 | $2.74 | |||||||||||||
Hypothetical (h) | 0.55% | $1,000.00 | $1,022.19 | $2.77 |
MFS GEORGIA MUNICIPAL BOND FUND
Share Class | Annualized Expense Ratio | Beginning Account Value 10/01/17 | Ending Account Value 3/31/18 | Expenses Paid During 10/01/17-3/31/18 | ||||||||||||||
A | Actual | 0.90% | $1,000.00 | $994.45 | $4.48 | |||||||||||||
Hypothetical (h) | 0.90% | $1,000.00 | $1,020.44 | $4.53 | ||||||||||||||
B | Actual | 1.65% | $1,000.00 | $990.85 | $8.19 | |||||||||||||
Hypothetical (h) | 1.65% | $1,000.00 | $1,016.70 | $8.30 | ||||||||||||||
I | Actual | 0.65% | $1,000.00 | $995.60 | $3.23 | |||||||||||||
Hypothetical (h) | 0.65% | $1,000.00 | $1,021.69 | $3.28 | ||||||||||||||
R6 | Actual | 0.59% | $1,000.00 | $995.95 | $2.94 | |||||||||||||
Hypothetical (h) | 0.59% | $1,000.00 | $1,021.99 | $2.97 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
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Expense Tables – continued
MFS MARYLAND MUNICIPAL BOND FUND
Share Class | Annualized Expense Ratio | Beginning Account Value 10/01/17 | Ending Account Value | Expenses Paid During Period (p) 10/01/17-3/31/18 | ||||||||||||||
A | Actual | 0.82% | $1,000.00 | $996.05 | $4.08 | |||||||||||||
Hypothetical (h) | 0.82% | $1,000.00 | $1,020.84 | $4.13 | ||||||||||||||
B | Actual | 1.58% | $1,000.00 | $993.23 | $7.85 | |||||||||||||
Hypothetical (h) | 1.58% | $1,000.00 | $1,017.05 | $7.95 | ||||||||||||||
I | Actual | 0.58% | $1,000.00 | $998.06 | $2.89 | |||||||||||||
Hypothetical (h) | 0.58% | $1,000.00 | $1,022.04 | $2.92 | ||||||||||||||
R6 | Actual | 0.52% | $1,000.00 | $998.41 | $2.59 | |||||||||||||
Hypothetical (h) | 0.52% | $1,000.00 | $1,022.34 | $2.62 |
MFS MASSACHUSETTS MUNICIPAL BOND FUND
Share Class | Annualized Expense Ratio | Beginning 10/01/17 | Ending Account Value 3/31/18 | Expenses Paid During Period (p) 10/01/17-3/31/18 | ||||||||||||||
A | Actual | 0.87% | $1,000.00 | $997.40 | $4.33 | |||||||||||||
Hypothetical (h) | 0.87% | $1,000.00 | $1,020.59 | $4.38 | ||||||||||||||
B | Actual | 1.64% | $1,000.00 | $993.62 | $8.15 | |||||||||||||
Hypothetical (h) | 1.64% | $1,000.00 | $1,016.75 | $8.25 | ||||||||||||||
I | Actual | 0.64% | $1,000.00 | $998.58 | $3.19 | |||||||||||||
Hypothetical (h) | 0.64% | $1,000.00 | $1,021.74 | $3.23 | ||||||||||||||
R6 | Actual | 0.57% | $1,000.00 | $998.97 | $2.84 | |||||||||||||
Hypothetical (h) | 0.57% | $1,000.00 | $1,022.09 | $2.87 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
Notes to Expense Table
For the MFS Maryland Municipal Bond Fund, each class with a Rule 12b-1 service fee is subject to a rebate of a portion of such fee. Such rebates are included in the expense ratios above and are outside of the expense limitation arrangement. For Class A shares, this rebate reduced the expense ratio above by 0.01%. See Note 3 in the Notes to Financial Statements for additional information
For the MFS Massachusetts Municipal Bond Fund, each class with a Rule 12b-1 service fee is subject to a rebate of a portion of such fee. Such rebates are included in the expense ratios above. For Class A shares, this rebate reduced the expense ratio above by 0.02%. See Note 3 in the Notes to Financial Statements for additional information.
18
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3/31/18
MFS ALABAMA MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
Municipal Bonds - 97.9% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 2.6% | ||||||||
Birmingham, AL, Airport Authority Rev., AGM, 5.25%, 7/01/2030 | $ | 1,000,000 | $ | 1,067,310 | ||||
Dallas and Fort Worth, TX, International Airport Rev., “B”, 5%, 11/01/2044 | 70,000 | 76,572 | ||||||
Dallas and Fort Worth, TX, International Airport Rev., “C”, 5%, 11/01/2045 | 45,000 | 48,746 | ||||||
New York, NY, Transportation Development Corp. Special Facilities Rev. (LaGuardia Airport Terminal B Redevelopment Project), “A”, AGM, 4%, 7/01/2037 | 345,000 | 355,564 | ||||||
$ | 1,548,192 | |||||||
General Obligations - General Purpose - 9.1% | ||||||||
Auburn, AL, “H”, 5.625%, 12/01/2033 (Prerefunded 12/01/2018) | $ | 1,000,000 | $ | 1,026,810 | ||||
Commonwealth of Massachusetts, General Obligation Consolidated Loan, “G”, 3%, 9/01/2046 | 475,000 | 416,984 | ||||||
Commonwealth of Puerto Rico, “A”, NATL, 5.5%, 7/01/2020 | 145,000 | 147,127 | ||||||
Commonwealth of Puerto Rico, Public Improvement, “A”, AGM, 5%, 7/01/2035 | 150,000 | 154,319 | ||||||
Commonwealth of Puerto Rico, Public Improvement, “A-4”, AGM, 5.25%, 7/01/2030 | 20,000 | 20,823 | ||||||
Guam Government, “A”, 6.75%, 11/15/2029 (Prerefunded 11/15/2019) | 260,000 | 280,280 | ||||||
Guam Government, “A”, 7%, 11/15/2039 (Prerefunded 11/15/2019) | 60,000 | 64,918 | ||||||
Jasper, AL, General Obligation Warrants, 5%, 3/01/2032 | 500,000 | 555,790 | ||||||
Madison, AL, General Obligation School Warrants, 5.15%, 2/01/2039 (Prerefunded 2/01/2019) | 795,000 | 817,697 | ||||||
Madison, AL, General Obligation School Warrants, 5.15%, 2/01/2039 | 205,000 | 210,303 | ||||||
Mobile County, AL, General Obligation Warrants, 5%, 8/01/2036 | 500,000 | 575,110 | ||||||
Puerto Rico Public Buildings Authority Rev., “H”, AMBAC, 5.5%, 7/01/2018 | 140,000 | 140,610 | ||||||
Puerto Rico Public Buildings Authority Rev., “M-2”, AMBAC, 10%, 7/01/2035 | 115,000 | 120,346 | ||||||
State of California, 6%, 11/01/2039 | 550,000 | 586,658 | ||||||
State of Illinois, 5%, 11/01/2027 | 130,000 | 135,213 | ||||||
State of Illinois, “D”, 5%, 11/01/2028 | 140,000 | 145,282 | ||||||
$ | 5,398,270 | |||||||
General Obligations - Schools - 8.6% | ||||||||
Huntsville, AL, School Warrants, “C”, 5%, 11/01/2029 | $ | 200,000 | $ | 230,148 | ||||
Huntsville, AL, School Warrants, “C”, 5%, 11/01/2030 | 1,000,000 | 1,150,740 |
Issuer | Shares/Par | Value ($) | ||||||
General Obligations - Schools - continued | ||||||||
Madison County, AL, Board of Education Capital Outlay Tax Anticipation Warrants, ASSD GTY, 5.125%, 9/01/2034 (Prerefunded 9/01/2018) | $ | 500,000 | $ | 507,390 | ||||
Montebello, CA, Unified School District (Election of 2016), “A”, 4%, 8/01/2046 | 270,000 | 277,700 | ||||||
Moorpark, CA, Unified School District (Election of 2008), Capital Appreciation, “B”, AGM, 0%, 8/01/2036 | 570,000 | 271,725 | ||||||
Shelby County, AL, Board of Education Capital Outlay School Warrants (Ten Mill County Tax), 5%, 2/01/2031 | 500,000 | 537,880 | ||||||
Sumter County, AL, School Warrants, 5.2%, 2/01/2039 | 1,000,000 | 1,003,300 | ||||||
Tuscaloosa, AL, Board of Education, School Tax Warrants, 5%, 8/01/2036 | 1,000,000 | 1,135,330 | ||||||
$ | 5,114,213 | |||||||
Healthcare Revenue - Hospitals - 16.3% | ||||||||
Alabama Special Care Facilities Financing Authority (Daughters of Charity), ETM, AMBAC, 5%, 11/01/2025 | $ | 1,215,000 | $ | 1,226,093 | ||||
Alabama Special Care Facilities Financing Authority Rev. (Ascension Health), “C”, 5%, 11/15/2046 | 500,000 | 563,870 | ||||||
Birmingham, AL, Special Care Facilities Financing Authority Health Care Rev. (Children’s Hospital), 5%, 6/01/2031 | 750,000 | 842,903 | ||||||
Birmingham, AL, Special Care Facilities Financing Authority Health Care Rev. (Children’s Hospital), ASSD GTY, 6%, 6/01/2039 (Prerefunded 6/01/2019) | 750,000 | 787,260 | ||||||
California Health Facilities Financing Authority Rev. (Providence St. Joseph Health System), “A”, 3%, 10/01/2041 | 220,000 | 198,539 | ||||||
California Health Facilities Financing Authority Rev. (Stanford Health System), “A”, 4%, 11/15/2040 | 200,000 | 207,438 | ||||||
Cullman County, AL, Health Care Authority (Cullman Regional Medical Center), “A”, 7%, 2/01/2036 | 300,000 | 307,629 | ||||||
DCH Health Care Authority, AL, Health Care Facilities Rev., 5%, 6/01/2033 | 500,000 | 556,830 | ||||||
Escambia County, FL, Health Facilities Authority (Baptist Hospital, Inc.), “A”, 6%, 8/15/2036 | 435,000 | 469,134 | ||||||
Houston County, AL, Health Care Authority (Southeast Alabama Medical Center), “A”, 5%, 10/01/2030 | 500,000 | 551,905 | ||||||
Huntsville, AL, Health Care Authority Rev., “A”, 5%, 6/01/2030 (Prerefunded 6/01/2020) | 1,000,000 | 1,066,630 | ||||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 7%, 8/15/2044 (Prerefunded 8/15/2019) | 255,000 | 272,886 |
19
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Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Mobile, AL, Special Care Facilities Financing Authority Rev. (Infirmary Health System, Inc.), “A”, 5.25%, 2/01/2030 (Prerefunded 2/03/2020) | $ | 500,000 | $ | 531,145 | ||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6%, 10/01/2027 (Prerefunded 10/01/2019) | 370,000 | 393,095 | ||||||
New Jersey Health Care Facilities, Financing Authority Rev. (University Hospital), “A”, AGM, 5%, 7/01/2046 | 50,000 | 55,096 | ||||||
UAB Medicine Financing Authority Rev., “B”, 5%, 9/01/2035 | 1,000,000 | 1,152,490 | ||||||
University of Alabama at Birmingham, AL, Hospital Rev., “A”, 5.25%, 9/01/2025 (Prerefunded 9/01/2018) | 500,000 | 507,440 | ||||||
$ | 9,690,383 | |||||||
Healthcare Revenue - Long Term Care - 1.8% | ||||||||
Birmingham, AL, Special Care Facilities Financing Authority Rev. (Methodist Home for the Aging), 5.75%, 6/01/2045 | $ | 250,000 | $ | 274,533 | ||||
Pell City, AL, Special Care Facilities, Financing Authority Rev. (Noland Health Services, Inc.), 5%, 12/01/2039 | 750,000 | 809,722 | ||||||
$ | 1,084,255 | |||||||
Industrial Revenue - Other - 0.6% | ||||||||
New York Liberty Development Corp. Rev. (Goldman Sachs Headquarters), 5.25%, 10/01/2035 | $ | 290,000 | $ | 359,873 | ||||
Industrial Revenue - Paper - 1.0% | ||||||||
Selma, AL, Industrial Development Board Rev., Gulf Opportunity Zone (International Paper Co.), “A”, 6.25%, 11/01/2033 | $ | 250,000 | $ | 267,185 | ||||
Selma, AL, Industrial Development Board Rev., Gulf Opportunity Zone (International Paper Co.), “A”, 5.375%, 12/01/2035 | 300,000 | 332,427 | ||||||
$ | 599,612 | |||||||
Miscellaneous Revenue - Other - 1.7% | ||||||||
Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/2040 | $ | 65,000 | $ | 69,727 | ||||
Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/2044 | 95,000 | 101,675 | ||||||
New York Liberty Development Corp., Liberty Rev. (3 World Trade Center Project), “1”, 5%, 11/15/2044 | 260,000 | 275,592 | ||||||
New York Liberty Development Corp., Liberty Rev. (7 World Trade Center Project), 5%, 9/15/2040 | 495,000 | 544,594 | ||||||
$ | 991,588 |
Issuer | Shares/Par | Value ($) | ||||||
Port Revenue - 2.8% | ||||||||
Alabama Port Authority Docks Facilities Rev., 6%, 10/01/2040 (Prerefunded 10/01/2020) | $ | 500,000 | $ | 551,385 | ||||
Alabama Port Authority Docks Facilities Rev., Revenue Refunding, “A”, AGM, 5%, 10/01/2035 | 1,000,000 | 1,122,000 | ||||||
$ | 1,673,385 | |||||||
Sales & Excise Tax Revenue - 5.3% | ||||||||
Chicago, IL, Transit Authority Sales Tax Receipts Rev., AGM, 5%, 12/01/2046 | $ | 425,000 | $ | 463,628 | ||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6%, 1/15/2041 | 325,000 | 349,326 | ||||||
Jefferson County, AL, Limited Obligation Warrants, 5%, 9/15/2033 | 500,000 | 572,065 | ||||||
Massachusetts Bay Transportation Authority, Sales Tax Rev., “A”, 5%, 7/01/2031 | 515,000 | 631,941 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “A”, AGM, 5%, 8/01/2040 | 30,000 | 30,386 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, AMBAC, 0%, 8/01/2054 | 185,000 | 23,824 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2040 | 95,000 | 24,728 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2041 | 75,000 | 18,463 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2042 | 190,000 | 44,152 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2043 | 75,000 | 16,472 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2044 | 45,000 | 9,369 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2045 | 30,000 | 5,923 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2046 | 645,000 | 120,783 | ||||||
Tuscaloosa County, AL, Board of Education, | ||||||||
School Tax Warrants, 5%, 2/01/2037 | 750,000 | 854,933 | ||||||
$ | 3,165,993 | |||||||
Secondary Schools - 0.4% | ||||||||
La Vernia, TX, Higher Education Finance Corp. Rev. (Lifeschool of Dallas), ’’A“, 7.5%, 8/15/2041 (Prerefunded 8/15/2019) | $ | 190,000 | $ | 204,334 | ||||
State & Local Agencies - 12.2% | ||||||||
Alabama Incentives Financing Authority Special Obligation, “A”, 5%, 9/01/2029 | $ | 1,000,000 | $ | 1,042,660 | ||||
Alabama Public Health Care Authority Lease Rev. (Department Of Public Health Facilities), 5%, 9/01/2030 | 280,000 | 314,527 |
20
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
State & Local Agencies - continued | ||||||||
Alabama Public School & College Authority Rev., “A”, 5%, 5/01/2029 (Prerefunded 5/01/2019) | $ | 1,000,000 | $ | 1,036,170 | ||||
Alabama Public School & College Authority Rev., “B”, 5%, 6/01/2025 | 800,000 | 904,944 | ||||||
Anniston, AL, Public Building Authority Rev. (Judicial Center Project), AGM, 5%, 3/01/2032 | 500,000 | 533,135 | ||||||
Bessemer, AL, Public Educational Building Authority Rev. (DHR Building Project), “A”, ASSD GTY, 5%, 7/01/2030 | 385,000 | 409,952 | ||||||
Colorado State University Board of Governors, System Enterprise Refunding Rev., ”E“, 4%, 3/01/2043 | 315,000 | 327,817 | ||||||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., Enhanced, “A”, 5%, 6/01/2030 | 35,000 | 39,049 | ||||||
Huntsville, AL, Public Building Authority Lease Redunding Rev., 5%, 10/01/2033 | 500,000 | 583,890 | ||||||
Montgomery County, AL, Public Building Authority Rev. Refunding Warrants (Facilities Project), 5%, 3/01/2027 | 1,050,000 | 1,193,388 | ||||||
New Jersey Building Authority Rev., Unrefunded Balance, “A”, BAM, 5%, 6/15/2029 | 10,000 | 11,320 | ||||||
New York Dormitory Authority Rev., State Personal Income Tax, “A”, (Group C), 5%, 2/15/2041 | 255,000 | 290,455 | ||||||
Orangeburg County, SC, Facilities Corp. Installment Purchase Rev. (Detention Center Project), 4%, 12/01/2042 | 185,000 | 188,112 | ||||||
State Public School Building Authority, PA, School Lease Rev. (The School District of Philadelphia Project), “A”, AGM, 5%, 6/01/2033 | 350,000 | 391,135 | ||||||
$ | 7,266,554 | |||||||
Tax - Other - 1.8% | ||||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/2024 (Prerefunded 12/01/2019) | $ | 95,000 | $ | 100,788 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/2029 (Prerefunded 12/01/2019) | 30,000 | 31,950 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2033 | 90,000 | 94,873 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2034 | 55,000 | 57,814 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2035 | 55,000 | 57,652 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2036 | 30,000 | 31,380 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2046 | 85,000 | 88,100 | ||||||
Puerto Rico Convention Center District Authority, Hotel Occupancy Tax Rev., “A”, AMBAC, 5%, 7/01/2031 | 70,000 | 67,756 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2024 | 105,000 | 108,460 |
Issuer | Shares/Par | Value ($) | ||||||
Tax - Other - continued | ||||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2026 | $ | 215,000 | $ | 221,882 | ||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2027 | 190,000 | 195,677 | ||||||
$ | 1,056,332 | |||||||
Toll Roads - 0.5% | ||||||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 6%, 1/01/2037 | $ | 90,000 | $ | 100,680 | ||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 5.5%, 1/01/2042 | 180,000 | 196,674 | ||||||
$ | 297,354 | |||||||
Transportation - Special Tax - 3.8% | ||||||||
Alabama Federal Aid Highway Finance Authority Special Obligation, “A”, 5%, 9/01/2035 | $ | 500,000 | $ | 579,885 | ||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”CC“, AGM, 5.25%, 7/01/2036 | 135,000 | 143,856 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”D“, AGM, 5%, 7/01/2032 | 125,000 | 125,105 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “L”, AMBAC, 5.25%, 7/01/2038 | 325,000 | 315,127 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “L”, ASSD GTY, 5.25%, 7/01/2041 | 310,000 | 331,840 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “L”, NATL, 5.25%, 7/01/2035 | 120,000 | 114,110 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, AGM, 5.5%, 7/01/2029 | 105,000 | 114,371 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, AMBAC, 5.5%, 7/01/2029 | 325,000 | 332,663 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, ASSD GTY, 5.25%, 7/01/2034 | 50,000 | 53,210 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, ASSD GTY, 5.25%, 7/01/2036 | 5,000 | 5,328 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, NATL, 5.25%, 7/01/2032 | 30,000 | 29,013 | ||||||
New Jersey Transportation Trust Fund Authority, Federal Highway Reimbursement Rev., ”A-1“, 5%, 6/15/2027 | 105,000 | 116,612 | ||||||
$ | 2,261,120 |
21
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - 12.9% | ||||||||
Alabama State University Board of Education Rev. (Chattahoochee Valley Community College), ASSD GTY, 5%, 6/01/2034 | $ | 1,300,000 | $ | 1,341,613 | ||||
Alabama State University Rev., General Tuition | ||||||||
& Fee, ASSD GTY, 5.75%, 9/01/2039 | 1,000,000 | 1,054,920 | ||||||
Auburn University, General Fee Rev., “A”, 4%, 6/01/2036 | 1,000,000 | 1,044,590 | ||||||
Homewood, AL, Educational Building Authority Facilities Rev. (Samford University), “A”, 5%, 12/01/2034 | 500,000 | 561,660 | ||||||
Jacksonville State University, Tuition & Fee Rev., ASSD GTY, 5.125%, 12/01/2038 (Prerefunded 12/01/2018) | 110,000 | 112,552 | ||||||
Jacksonville State University, Tuition & Fee Rev., ASSD GTY, 5.125%, 12/01/2038 (Prerefunded 12/01/2018) | 890,000 | 910,648 | ||||||
Jacksonville, AL, Public Educational Building Authority Higher Education Facilities Rev. (Jacksonville State University Foundation), “A”, 5%, 7/01/2036 | 600,000 | 676,086 | ||||||
Pennsylvania Higher Educational Facilities Authority Rev., AGM, 3%, 6/15/2045 | 275,000 | 241,618 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Educational Facilities Rev. (University Plaza Project), NATL, 5%, 7/01/2033 | 65,000 | 60,917 | ||||||
Troy University, Facilities Rev., “A”, BAM, 5%, 11/01/2028 | 500,000 | 566,395 | ||||||
University of South Alabama, Facilities Rev., AGM, 4%, 11/01/2035 | 500,000 | 522,150 | ||||||
University of South Alabama, Facilities Rev., BAM, 5%, 10/01/2036 | 500,000 | 569,235 | ||||||
$ | 7,662,384 | |||||||
Universities - Dormitories - 0.4% | ||||||||
Oklahoma Development Finance Authority, First Mortgage Rev. (Provident Education Resources, Inc.- Cross Village Student Housing Project), 5%, 8/01/2052 | $ | 90,000 | $ | 95,719 | ||||
Oklahoma Development Finance Authority, First Mortgage Rev. (Provident Education Resources, Inc.- Cross Village Student Housing | ||||||||
Project), 5.25%, 8/01/2057 | 100,000 | 107,469 | ||||||
$ | 203,188 | |||||||
Utilities - Municipal Owned - 2.6% | ||||||||
Chatom, AL, Industrial Development Board Gulf Opportunity Zone (PowerSouth Energy), “A”, ASSD GTY, 5%, 8/01/2037 | $ | 1,000,000 | $ | 1,058,260 | ||||
Guam Power Authority Rev., “A”, 5.5%, 10/01/2040 (Prerefunded 10/01/2020) | 230,000 | 250,431 | ||||||
Long Island, NY, Power Authority, Electric Systems Rev., “A”, 6%, 5/01/2033 (Prerefunded 5/01/2019) | 130,000 | 136,028 | ||||||
Puerto Rico Electric Power Authority Rev., ”DDD“, AGM, 3.625%, 7/01/2023 | 10,000 | 9,851 |
Issuer | Shares/Par | Value ($) | ||||||
Utilities - Municipal Owned - continued | ||||||||
Puerto Rico Electric Power Authority Rev., ”DDD“, AGM, 3.65%, 7/01/2024 | $ | 50,000 | $ | 48,903 | ||||
Puerto Rico Electric Power Authority Rev., ”SS“, ASSD GTY, 4.375%, 7/01/2030 | 5,000 | 4,920 | ||||||
Puerto Rico Electric Power Authority Rev., ”UU“, ASSD GTY, 4.25%, 7/01/2027 | 30,000 | 29,975 | ||||||
�� | $ | 1,538,368 | ||||||
Utilities - Other - 1.3% | ||||||||
Central Plains Energy Project, NE, Gas Project Rev. (Project No.3), “A”, 5%, 9/01/2036 | $ | 40,000 | $ | 47,311 | ||||
Central Plains Energy Project, NE, Gas Project Rev. (Project No.3), “A”, 5%, 9/01/2042 | 75,000 | 90,174 | ||||||
Lower, AL, Gas District Project Rev., “A”, 5%, 9/01/2046 | 500,000 | 609,650 | ||||||
$ | 747,135 | |||||||
Water & Sewer Utility Revenue - 12.2% | ||||||||
Auburn, AL, Waterworks Board Water Rev., 5%, 9/01/2036 | $ | 1,000,000 | $ | 1,144,140 | ||||
Birmingham, AL, Waterworks Board Subordinate Rev., “B”, 5%, 1/01/2043 | 500,000 | 567,335 | ||||||
Birmingham, AL, Waterworks Board Water Rev., “A”, 5%, 1/01/2030 | 500,000 | 570,785 | ||||||
Birmingham, AL, Waterworks Board Water Rev., “A”, 5.125%, 1/01/2034 (Prerefunded 1/01/2019) | 280,000 | 287,373 | ||||||
Birmingham, AL, Waterworks Board Water Rev., “A”, ASSD GTY, 5.125%, 1/01/2034 (Prerefunded 1/01/2019) | 470,000 | 482,375 | ||||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, ASSD GTY, 5%, 7/01/2028 | 10,000 | 10,015 | ||||||
Cullman, AL, Utilities Board Water Rev., “A”, AGM, 5%, 9/01/2035 | 1,000,000 | 1,135,800 | ||||||
Gadsden, AL, Water Works and Sewer Rev., AGM, 4%, 6/01/2033 | 1,000,000 | 1,039,820 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 7/01/2036 | 25,000 | 26,833 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 1/01/2046 | 120,000 | 127,529 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), “A”, 5%, 7/01/2029 | 45,000 | 48,905 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), “A”, 5%, 7/01/2035 | 45,000 | 47,656 | ||||||
Jefferson County, AL, Senior Lien Sewer Rev., Current Interest Warrants, “A”, AGM, 5%, 10/01/2044 | 750,000 | 821,745 | ||||||
Jefferson County, AL, Sewer Rev. Warrants, Subordinate Lien, ”D“, 5%, 10/01/2021 | 300,000 | 322,653 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Sewage Disposal System Rev. Refunding Second Lien Local Project), ”C-7“, NATL, 5%, 7/01/2032 | 15,000 | 16,543 |
22
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Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - continued | ||||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Second Lien Local Project), ”D-6“, NATL, 5%, 7/01/2036 | $ | 20,000 | $ | 21,868 | ||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Senior Lien Local Project), ”D-1“, AGM, 5%, 7/01/2035 | 10,000 | 11,101 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Senior Lien Local Project), ”D-1“, AGM, 5%, 7/01/2037 | 20,000 | 22,165 | ||||||
Scottsboro, AL, Waterworks Sewer & Gas Board Rev., 5%, 8/01/2032 | 500,000 | 544,520 | ||||||
$ | 7,249,161 | |||||||
Total Municipal Bonds (Identified Cost, $56,845,838) | $ | 58,111,694 |
Investment Companies (h) - 0.5% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Money Market Funds - 0.5% | ||||||||
MFS Institutional Money Market Portfolio, 1.71% (v) (Identified Cost, $305,753) | 305,813 | $ | 305,782 | |||||
Other Assets, Less Liabilities - 1.6% | 971,274 | |||||||
Net Assets - 100.0% | $ | 59,388,750 |
See Portfolio Footnotes and Notes to Financial Statements
23
Table of Contents
PORTFOLIO OF INVESTMENTS
3/31/18
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 - 1.7% | ||||||||
Dallas and Fort Worth, TX, International Airport Rev., “B”, 5%, 11/01/2044 | $ | 235,000 | $ | 257,064 | ||||
Dallas and Fort Worth, TX, International Airport Rev., “C”, 5%, 11/01/2045 | 160,000 | 173,320 | ||||||
New York, NY, Transportation Development Corp. Special Facilities Rev. (LaGuardia Airport Terminal B Redevelopment Project), “A”, AGM, 4%, 7/01/2037 | 1,030,000 | 1,061,539 | ||||||
San Francisco, CA, City & County Airports Commission, International Airport Rev., “B”, 5%, 5/01/2046 | 660,000 | 736,494 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, 5%, 12/01/2044 | 95,000 | 104,583 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, BAM, 5%, 12/01/2039 | 105,000 | 115,922 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/2039 | 80,000 | 87,170 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/2044 | 125,000 | 135,816 | ||||||
$ | 2,671,908 | |||||||
General Obligations - General Purpose - 5.0% | ||||||||
Arkansas Higher Education, 4%, 6/01/2029 | $ | 2,000,000 | $ | 2,158,400 | ||||
Arkansas Water, Waste Disposal and Pollution Abatement Facilities, “A”, 4%, 7/01/2032 | 1,000,000 | 1,080,880 | ||||||
Commonwealth of Massachusetts, General Obligation Consolidated Loan, ”G“, 3%, 9/01/2046 | 1,280,000 | 1,123,661 | ||||||
Commonwealth of Puerto Rico, “A”, NATL, 5.5%, 7/01/2020 | 475,000 | 481,968 | ||||||
Commonwealth of Puerto Rico, Public Improvement Refunding, ”A-4“, AGM, 5%, 7/01/2031 | 130,000 | 134,355 | ||||||
Commonwealth of Puerto Rico, Public Improvement, “A”, AGM, 5%, 7/01/2035 | 430,000 | 442,380 | ||||||
Commonwealth of Puerto Rico, Public Improvement, ”A-4“, AGM, 5.25%, 7/01/2030 | 60,000 | 62,468 | ||||||
Guam Government, “A”, 6.75%, 11/15/2029 (Prerefunded 11/15/2019) | 515,000 | 555,170 | ||||||
Guam Government, “A”, 7%, 11/15/2039 (Prerefunded 11/15/2019) | 65,000 | 70,327 | ||||||
Puerto Rico Public Buildings Authority Rev., ”H“, AMBAC, 5.5%, 7/01/2018 | 610,000 | 612,660 | ||||||
State of California, 6%, 11/01/2039 | 1,160,000 | 1,237,314 | ||||||
$ | 7,959,583 |
Issuer | Shares/Par | Value ($) | ||||||
General Obligations - Schools - 5.2% | ||||||||
Bentonville, AR, School District No. 6 Construction Refunding, “B”, 4%, 6/01/2047 | $ | 3,000,000 | $ | 3,099,120 | ||||
Berks County, PA, Reading School District, AGM, 5%, 3/01/2035 | 40,000 | 45,047 | ||||||
Berks County, PA, Reading School District, AGM, 5%, 3/01/2036 | 40,000 | 44,949 | ||||||
Berks County, PA, Reading School District, AGM, 5%, 3/01/2037 | 35,000 | 39,244 | ||||||
Berks County, PA, Reading School District, AGM, 5%, 3/01/2038 | 15,000 | 16,795 | ||||||
Crittenden County, AR, Community College District, 4.6%, 2/01/2035 | 285,000 | 285,245 | ||||||
Crittenden County, AR, Community College District, 4.7%, 2/01/2040 | 625,000 | 625,556 | ||||||
Crittenden County, AR, Earle Special School District Refunding and Construction, 4%, 2/01/2048 | 2,060,000 | 2,108,060 | ||||||
Pulaski County, AR, Special School District Construction, 4%, 2/01/2041 | 2,000,000 | 2,061,660 | ||||||
$ | 8,325,676 | |||||||
Healthcare Revenue - Hospitals - 15.8% | ||||||||
Arkansas Development Finance Authority Health Care Rev. (Baptist Health), “A”, 5%, 12/01/2029 | $ | 1,000,000 | $ | 1,135,210 | ||||
Arkansas Development Finance Authority Hospital Rev. (Washington Regional Medical Center), 5%, 2/01/2038 | 1,500,000 | 1,687,005 | ||||||
Arkansas Development Finance Authority Hospital Rev. (Washington Regional Medical Center), “A”, 5%, 2/01/2033 | 1,645,000 | 1,810,405 | ||||||
California Health Facilities Financing Authority Rev. (Providence St. Joseph Health System), “A”, 3%, 10/01/2041 | 600,000 | 541,470 | ||||||
California Health Facilities Financing Authority Rev. (Stanford Health System), “A”, 4%, 11/15/2040 | 555,000 | 575,640 | ||||||
Conway, AR, Hospital Rev. (Conway Regional Medical Center), 4.45%, 8/01/2032 | 540,000 | 550,190 | ||||||
Escambia County, FL, Health Facilities Authority (Baptist Hospital, Inc.), “A”, 6%, 8/15/2036 | 420,000 | 452,957 | ||||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 7%, 8/15/2044 (Prerefunded 8/15/2019) | 510,000 | 545,771 | ||||||
Independence County, AR, Public Health Education & Housing Facilities Board Rev. (White River Health Systems), 5.75%, 6/01/2028 | 1,000,000 | 1,049,800 | ||||||
Indiana Finance Authority Rev. (Sisters of St. Francis Health Services), 5.375%, 11/01/2032 (Prerefunded 11/01/2018) | 1,085,000 | 1,108,002 |
24
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Jefferson County, AR, Hospital Rev., Refunding (Regional Medical Center), AGM, 5%, 6/01/2026 | $ | 2,150,000 | $ | 2,247,244 | ||||
Kentucky Economic Development Finance Authority Hospital Rev. (Owensboro Medical Health System, Inc.), “A”, 6.375%, 6/01/2040 (Prerefunded 6/01/2020) | 545,000 | 596,503 | ||||||
Kentucky Economic Development Finance Authority Hospital Rev. (Owensboro Medical Health System, Inc.), “A”, 6.5%, 3/01/2045 (Prerefunded 6/01/2020) | 395,000 | 432,928 | ||||||
Kentucky Economic Development Finance Authority, Hospital Rev. (Owensboro Medical Health System, Inc.), “A”, 5.75%, 6/01/2025 (Prerefunded 6/01/2020) | 510,000 | 551,478 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6%, 10/01/2027 (Prerefunded 10/01/2019) | 355,000 | 377,159 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6.125%, 10/01/2039 (Prerefunded 10/01/2019) | 490,000 | 521,487 | ||||||
Pulaski County, AR, Hospital Rev. (Arkansas Children’s Hospital), 5%, 3/01/2035 | 1,500,000 | 1,703,610 | ||||||
Pulaski County, AR, Hospital Rev. (Arkansas Children’s Hospital), 5%, 3/01/2036 | 1,500,000 | 1,700,055 | ||||||
Pulaski County, AR, Hospital Rev. (Arkansas Children’s Hospital), AGM, 4%, 3/01/2020 | 1,000,000 | 1,040,180 | ||||||
Pulaski County, AR, Hospital Rev. (Arkansas Children’s Hospital), ASSD GTY, 5.5%, 3/01/2034 (Prerefunded 3/01/2019) | 750,000 | 775,853 | ||||||
Pulaski County, AR, Hospital Rev. (Arkansas Children’s Hospital), ASSD GTY, 5.5%, 3/01/2039 (Prerefunded 3/01/2019) | 1,925,000 | 1,991,355 | ||||||
Pulaski County, AR, Public Facilities Board Health Facilities Rev. (Carti Project), 5.5%, 7/01/2043 | 750,000 | 727,058 | ||||||
Springdale, AR, Public Facilities Board Hospital Rev. (Children’s Northwest Project), 5%, 3/01/2040 | 2,820,000 | 3,167,311 | ||||||
$ | 25,288,671 | |||||||
Industrial Revenue - Paper - 0.1% | ||||||||
Valparaiso, IN, Exempt Facilities Rev. (Pratt Paper LLC Project), 7%, 1/01/2044 | $ | 100,000 | $ | 118,063 | ||||
Miscellaneous Revenue - Entertainment & Tourism - 1.8% | ||||||||
Fayetteville, AR, Hotel, Motel and Restaurant Rev., BAM, 5%, 11/01/2034 | $ | 2,525,000 | $ | 2,848,478 | ||||
Miscellaneous Revenue - Other - 1.4% | ||||||||
New York Liberty Development Corp., Liberty Rev. (7 World Trade Center Project), 5%, 9/15/2040 | $ | 1,615,000 | $ | 1,776,807 | ||||
Texas Private Activity Surface Transportation Corp. Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 7%, 12/31/2038 | 230,000 | 270,476 |
Issuer | Shares/Par | Value ($) | ||||||
Miscellaneous Revenue - Other - continued | ||||||||
Texas Private Activity Surface Transportation Corp. Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 6.75%, 6/30/2043 | $ | 180,000 | $ | 208,796 | ||||
$ | 2,256,079 | |||||||
Sales & Excise Tax Revenue - 11.4% | ||||||||
Bentonville, AR, Sales & Use Tax, 4%, 11/01/2026 | $ | 1,310,000 | $ | 1,324,882 | ||||
Bentonville, AR, Sales & Use Tax, AMBAC, 4.375%, 11/01/2025 | 85,000 | 85,187 | ||||||
Cabot, AR, Sales & Use Tax, 5%, 6/01/2026 | 700,000 | 780,269 | ||||||
Cabot, AR, Sales & Use Tax, 5%, 6/01/2027 | 1,300,000 | 1,445,093 | ||||||
Chicago, IL, Transit Authority Sales Tax Receipts Rev., AGM, 5%, 12/01/2046 | 1,145,000 | 1,249,069 | ||||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6%, 1/15/2041 | 760,000 | 816,886 | ||||||
Conway, AR, Sales & Use Tax Rev., Capital Improvement, 4.5%, 5/01/2030 | 850,000 | 917,099 | ||||||
Conway, AR, Sales & Use Tax Rev., Capital Improvement, 4.5%, 5/01/2035 | 1,150,000 | 1,227,867 | ||||||
Fort Smith, AR, Sales & Use Tax, 5%, 5/01/2023 | 380,000 | 426,960 | ||||||
Fort Smith, AR, Sales & Use Tax, 5%, 5/01/2024 | 2,040,000 | 2,268,317 | ||||||
Guam Government Business Privilege Tax Rev., ”D“, 5%, 11/15/2031 | 1,180,000 | 1,243,295 | ||||||
Massachusetts Bay Transportation Authority, Sales Tax Rev., ”A-1“, 5.25%, 7/01/2029 | 1,000,000 | 1,240,350 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, AMBAC, 0%, 8/01/2054 | 4,635,000 | 596,895 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2042 | 340,000 | 79,009 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2045 | 90,000 | 17,769 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2046 | 1,865,000 | 349,240 | ||||||
Rogers, AR, Sales & Use Tax Rev., 5%, 11/01/2023 | 1,000,000 | 1,104,530 | ||||||
Springdale, AR, Sales & Use Tax Rev., 5%, 11/01/2028 | 1,000,000 | 1,112,980 | ||||||
Stuttgart, AR, Sales & Use Tax Rev., AGM, 5%, 6/01/2032 | 1,840,000 | 1,945,303 | ||||||
$ | 18,231,000 | |||||||
Single Family Housing - State - 0.2% | ||||||||
Arkansas Development Finance Authority, Mortgage Rev., “B”, GNMA, 4.85%, 7/01/2031 | $ | 375,000 | $ | 375,799 | ||||
State & Local Agencies - 5.2% | ||||||||
Arkansas Development Finance Authority Rev. (Donaghey Plaza Project), 5%, 6/01/2034 | $ | 2,605,000 | $ | 2,860,759 |
25
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
State & Local Agencies - continued | ||||||||
Arkansas Development Finance Authority Rev., Correctional Facilities, “A”, 5.125%, 5/15/2034 (Prerefunded 5/15/2019) | $ | 500,000 | $ | 519,420 | ||||
Arkansas Development Finance Authority State Agencies Facilities Rev., Crossover Refunding Bonds (900 West Capitol Building Project), 4%, 4/01/2028 | 500,000 | 541,210 | ||||||
Arkansas Development Finance Authority State Agencies Facilities Rev., Crossover Refunding Bonds (900 West Capitol Building Project), 4%, 4/01/2029 | 500,000 | 537,525 | ||||||
Arkansas Development Finance Authority State Agencies Facilities Rev., Crossover Refunding Bonds (900 West Capitol Building Project), 4%, 4/01/2030 | 500,000 | 535,490 | ||||||
Colorado State University Board of Governors, System Enterprise Refunding Rev., ”E“, 4%, 3/01/2043 | 840,000 | 874,180 | ||||||
Delaware Valley, PA, Regional Finance Authority, “C”, FLR, 2.094% (LIBOR-3mo. + 0.75%), 6/01/2037 | 1,315,000 | 1,165,761 | ||||||
New York Dormitory Authority Rev., State Personal Income Tax, “A”, (Group C), 5%, 2/15/2041 | 710,000 | 808,718 | ||||||
Orangeburg County, SC, Facilities Corp. Installment Purchase Rev. (Detention Center Project), 4%, 12/01/2042 | 525,000 | 533,830 | ||||||
$ | 8,376,893 | |||||||
Tax - Other - 4.7% | ||||||||
Fayetteville, AR, Liberty Improvement Bonds, 4%, 1/01/2037 | $ | 2,000,000 | $ | 2,094,660 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/2024 (Prerefunded 12/01/2019) | 490,000 | 519,856 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/2029 (Prerefunded 12/01/2019) | 65,000 | 69,226 | ||||||
Little Rock, AR, Hotel & Restaurant Gross Receipts Tax Rev., 5%, 7/01/2034 | 3,000,000 | 3,366,450 | ||||||
Puerto Rico Convention Center District Authority, Hotel Occupancy Tax Rev., “A”, AMBAC, 5%, 7/01/2031 | 210,000 | 203,269 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2026 | 750,000 | 774,007 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2027 | 590,000 | 607,629 | ||||||
$ | 7,635,097 | |||||||
Tobacco - 1.6% | ||||||||
Arkansas Development Finance Authority, Tobacco Settlement Rev. (Cancer Research Center Project), Capital Appreciation, AMBAC, 0%, 7/01/2027 | $ | 2,470,000 | $ | 1,858,626 |
Issuer | Shares/Par | Value ($) | ||||||
Tobacco - continued | ||||||||
Arkansas Development Finance Authority, Tobacco Settlement Rev. (Cancer Research Center Project), Capital Appreciation, AMBAC, 0%, 7/01/2028 | $ | 500,000 | $ | 361,180 | ||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.5%, 6/01/2023 | 425,000 | 426,623 | ||||||
$ | 2,646,429 | |||||||
Transportation - Special Tax - 3.0% | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “CC”, AGM, 5.25%, 7/01/2032 | $ | 45,000 | $ | 47,831 | ||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “CC”, AGM, 5.25%, 7/01/2033 | 80,000 | 85,098 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “CC”, AGM, 5.25%, 7/01/2036 | 400,000 | 426,240 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”J“, NATL, 5%, 7/01/2029 | 20,000 | 19,314 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”L“, AMBAC, 5.25%, 7/01/2038 | 1,075,000 | 1,042,341 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”L“, ASSD GTY, 5.25%, 7/01/2041 | 830,000 | 888,473 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”L“, NATL, 5.25%, 7/01/2035 | 480,000 | 456,442 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, AMBAC, 5.25%, 7/01/2031 | 75,000 | 74,360 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, ASSD GTY, 5.25%, 7/01/2034 | 215,000 | 228,801 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, ASSD GTY, 5.25%, 7/01/2036 | 360,000 | 383,594 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, NATL, 5.25%, 7/01/2032 | 350,000 | 338,488 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, NATL, 5.25%, 7/01/2033 | 445,000 | 428,335 | ||||||
New Jersey Transportation Trust Fund Authority, Federal Highway Reimbursement Rev., ”A-1“, 5%, 6/15/2027 | 310,000 | 344,283 | ||||||
$ | 4,763,600 | |||||||
Universities - Colleges - 21.1% | ||||||||
Arkansas State University, Housing System Rev. (Jonesboro Campus), 4.5%, 3/01/2031 | $ | 2,500,000 | $ | 2,685,375 | ||||
Arkansas State University, Student Fee (Jonesboro Campus), “C”, AGM, 4.5%, 3/01/2027 | 545,000 | 584,730 |
26
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
Pennsylvania Higher Educational Facilities Authority Rev., AGM, 3%, 6/15/2045 | $ | 860,000 | $ | 755,605 | ||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.125%, 4/01/2032 | 85,000 | 75,438 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.375%, 4/01/2042 | 140,000 | 120,400 | ||||||
Puerto Rico Industrial, Tourist, Medical, & Environmental Central Facilities (University of Sacred Heart), 4.375%, 10/01/2031 | 60,000 | 42,450 | ||||||
Puerto Rico Industrial, Tourist, Medical, & Environmental Central Facilities (University of Sacred Heart), 5%, 10/01/2042 | 30,000 | 20,663 | ||||||
Pulaski, AR, Student Tuition & Fee Rev. (Technical College), AGM, 4%, 4/01/2024 | 1,000,000 | 1,040,020 | ||||||
Pulaski, AR, Student Tuition & Fee Rev. (Technical College), AGM, 5%, 4/01/2041 | 1,000,000 | 1,086,300 | ||||||
Pulaski, AR, Student Tuition & Fee Rev. (Technical College), BAM, 5%, 9/01/2030 | 1,000,000 | 1,143,420 | ||||||
Red River, TX, Education Finance Corp., Higher Education Rev. (Houston Baptist University Project), 5.5%, 10/01/2046 | 340,000 | 373,599 | ||||||
University Arkansas Auxiliary Enterprises Rev., 5%, 12/01/2029 | 605,000 | 678,495 | ||||||
University Arkansas Auxiliary Enterprises Rev., “A”, 5%, 5/01/2029 | 200,000 | 221,724 | ||||||
University of Arkansas Board of Trustees, Stundent Housing System Refunding and Improvement Rev., “A”, BAM, 5%, 11/01/2023 | 1,760,000 | 1,999,501 | ||||||
University of Arkansas Facilities Rev. (UAMS Campus), 5%, 11/01/2022 | 505,000 | 568,357 | ||||||
University of Arkansas Facilities Rev. (UAMS Campus), 5%, 11/01/2023 | 520,000 | 595,436 | ||||||
University of Arkansas Facilities Rev. (UAMS Campus), 5%, 10/01/2025 | 780,000 | 888,116 | ||||||
University of Arkansas Facilities Rev. (UAMS Campus), 5%, 11/01/2025 | 2,000,000 | 2,282,260 | ||||||
University of Arkansas Rev. (Fayetteville Campus), “A”, 5%, 11/01/2021 | 1,310,000 | 1,448,362 | ||||||
University of Arkansas Rev. (Fayetteville Campus), “A”, 5%, 11/01/2026 | 1,000,000 | 1,103,430 | ||||||
University of Arkansas Rev. (Fayetteville Campus), “A”, 5%, 11/01/2033 (Prerefunded 11/01/2018) | 1,000,000 | 1,019,640 | ||||||
University of Arkansas Rev. (Fayetteville Campus), “A”, 5%, 11/01/2038 (Prerefunded 11/01/2018) | 1,000,000 | 1,019,640 | ||||||
University of Arkansas Rev. (Fayetteville Campus), “A”, 5%, 11/01/2046 | 1,540,000 | 1,756,385 | ||||||
University of Arkansas Rev. (Fort Smith Campus), 5%, 12/01/2028 (Prerefunded 6/01/2019) | 860,000 | 892,878 |
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
University of Arkansas Rev. (Student Fee-Fort Smith Campus), 4%, 12/01/2023 | $ | 250,000 | $ | 264,293 | ||||
University of Arkansas Rev. (Student Fee-Fort Smith Campus), 4%, 12/01/2024 | 250,000 | 263,305 | ||||||
University of Arkansas Rev. (Student Fee-Fort Smith Campus), 4%, 12/01/2025 | 500,000 | 524,995 | ||||||
University of Arkansas Rev. (Student Fee-Fort Smith Campus), 4%, 12/01/2026 | 305,000 | 319,158 | ||||||
University of Arkansas Rev. (Student Fee- UALR Campus), 5%, 10/01/2029 | 600,000 | 699,570 | ||||||
University of Arkansas, University Facilities Rev. (Fayetteville Campus), 5%, 11/01/2047 | 1,500,000 | 1,730,550 | ||||||
University of Arkansas, University Facilities Rev. (Fayetteville Campus), “A”, 5%, 9/15/2035 | 2,000,000 | 2,306,260 | ||||||
University of Arkansas, University Rev. (Fayetteville Campus), “A”, 5%, 11/01/2032 | 1,000,000 | 1,131,700 | ||||||
University of Arkansas, University Rev. (Monticello Campus), 4%, 12/01/2035 | 600,000 | 606,714 | ||||||
University of Arkansas, University Rev. (UAMS Campus), 4.5%, 7/01/2019 | 320,000 | 331,139 | ||||||
University of Central Arkansas Rev., “C”, ASSD GTY, 4.25%, 9/01/2040 | 1,950,000 | 1,986,192 | ||||||
University of Virginia, Rector and Visitors General Rev. Pledge Refunding, “A”, 5%, 4/01/2047 | 1,155,000 | 1,336,901 | ||||||
$ | 33,903,001 | |||||||
Utilities - Municipal Owned - 7.4% | ||||||||
Benton, AR, Public Utility Rev., AGM, 5%, 9/01/2030 | $ | 1,000,000 | $ | 1,143,420 | ||||
Benton, AR, Public Utility Rev., AGM, 5%, 9/01/2032 | 1,130,000 | 1,240,830 | ||||||
Benton, AR, Public Utility Rev., AGM, 5%, 9/01/2035 | 1,000,000 | 1,131,280 | ||||||
Benton, AR, Public Utility Rev., AGM, 5%, 9/01/2036 | 1,165,000 | 1,275,186 | ||||||
Guam Power Authority Rev., “A”, 5.5%, 10/01/2030 (Prerefunded 10/01/2020) | 450,000 | 489,974 | ||||||
Guam Power Authority Rev., “A”, 5.5%, 10/01/2040 (Prerefunded 10/01/2020) | 790,000 | 860,176 | ||||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/2030 | 2,805,000 | 3,040,844 | ||||||
Long Island, NY, Power Authority, Electric Systems Rev., “A”, 6%, 5/01/2033 (Prerefunded 5/01/2019) | 245,000 | 256,361 | ||||||
North Little Rock, AR, Electric Rev., “B”, AGM, 5%, 7/01/2021 | 1,040,000 | 1,078,126 | ||||||
North Little Rock, AR, Electric Rev., “B”, AGM, 5%, 7/01/2022 | 1,090,000 | 1,129,959 | ||||||
Puerto Rico Electric Power Authority Rev., “DDD”, AGM, 5%, 7/01/2023 | 135,000 | 139,180 | ||||||
Puerto Rico Electric Power Authority Rev., ”VV“, NATL, 5.25%, 7/01/2032 | 30,000 | 29,013 | ||||||
$ | 11,814,349 |
27
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Utilities - Other - 0.3% | ||||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2021 | $ | 300,000 | $ | 329,595 | ||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2022 | 155,000 | 172,627 | ||||||
$ | 502,222 | |||||||
Water & Sewer Utility Revenue - 12.9% | ||||||||
Arkansas Community Public Water Systems Authority Rev., 5%, 10/01/2032 | $ | 1,020,000 | $ | 1,121,837 | ||||
Arkansas Development Finance Authority, Capital Improvement Rev., Revolving Fund Loan, “C”, 5%, 6/01/2022 | 1,500,000 | 1,642,935 | ||||||
Arkansas Development Finance Authority, Capital Improvement Rev., Revolving Fund Loan, “C”, 5%, 6/01/2023 | 795,000 | 869,476 | ||||||
Arkansas Development Finance Authority, Capital Improvement Rev., Revolving Fund Loan, “C”, 5%, 6/01/2025 | 1,500,000 | 1,635,690 | ||||||
Central Arkansas Water Rev., 5%, 10/01/2023 | 1,275,000 | 1,458,804 | ||||||
City of Fort Smith, AR, Water and Sewer Rev., AGM, 5%, 10/01/2032 | 1,220,000 | 1,239,679 | ||||||
City of Fort Smith, AR, Water and Sewer Rev., BAM, 5%, 10/01/2029 | 1,000,000 | 1,153,850 | ||||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, ASSD GTY, 5%, 7/01/2028 | 35,000 | 35,054 | ||||||
Conway, AR, Water Rev., 4%, 12/01/2023 | 500,000 | 530,875 | ||||||
Fort Smith, AR, Water & Sewer Rev., AGM, 4.5%, 10/01/2021 | 1,545,000 | 1,660,659 | ||||||
Fort Smith, AR, Water & Sewer Rev., AGM, 4.5%, 10/01/2022 | 455,000 | 487,478 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 7/01/2036 | 85,000 | 91,233 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 1/01/2046 | 395,000 | 419,782 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), “A”, 5%, 7/01/2029 | 140,000 | 152,149 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), “A”, 5%, 7/01/2035 | 140,000 | 148,263 | ||||||
Hot Springs, AR, Wastewater Rev., 5%, 12/01/2020 | 500,000 | 536,115 | ||||||
Hot Springs, AR, Wastewater Rev., 5%, 12/01/2021 | 650,000 | 710,066 | ||||||
Hot Springs, AR, Wastewater Rev., ASSD GTY, 4.625%, 12/01/2037 | 1,260,000 | 1,318,602 |
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - continued | ||||||||
Little Rock, AR, Sewer Rev., 5.5%, 10/01/2030 (Prerefunded 10/01/2018) | $ | 750,000 | $ | 764,685 | ||||
Little Rock, AR, Sewer Rev., 5.75%, 10/01/2038 (Prerefunded 10/01/2018) | 1,000,000 | 1,020,810 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Sewage Disposal System Rev. Refunding Second Lien Local Project), ”C-7“, NATL, 5%, 7/01/2032 | 50,000 | 55,144 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Second Lien Local Project), ”D-6“, NATL, 5%, 7/01/2036 | 65,000 | 71,071 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Senior Lien Local Project), ”D-1“, AGM, 5%, 7/01/2035 | 30,000 | 33,302 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Senior Lien Local Project), ”D-1“, AGM, 5%, 7/01/2037 | 75,000 | 83,120 | ||||||
Paulding County, GA, Water & Sewerage Rev., Improvement & Refunding, 3%, 12/01/2048 | 2,415,000 | 2,067,868 | ||||||
Wasco, CA, Semitropic Improvement District (Semitropic Water Storage District), “A”, 5%, 12/01/2038 | 1,325,000 | 1,396,961 | ||||||
$ | 20,705,508 | |||||||
Total Municipal Bonds (Identified Cost, $156,202,514) |
| $ | 158,422,356 | |||||
Investment Companies (h) - 0.0% | ||||||||
Money Market Funds - 0.0% | ||||||||
MFS Institutional Money Market Portfolio, 1.71% (v) (Identified Cost, $41,877) | 41,886 | $ | 41,881 | |||||
Other Assets, Less Liabilities - 1.2% | 1,847,700 | |||||||
Net Assets - 100.0% | $ | 160,311,937 |
See Portfolio Footnotes and Notes to Financial Statements
28
Table of Contents
PORTFOLIO OF INVESTMENTS
3/31/18
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 - 98.7% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 5.7% | ||||||||
Chicago, IL, O’Hare International Airport Rev., Third Lien, “A”, 5.625%, 1/01/2035 (Prerefunded 1/01/2021) | $ | 615,000 | $ | 677,176 | ||||
Chicago, IL, O’Hare International Airport Rev., Third Lien, “A”, 5.625%, 1/01/2035 | 165,000 | 179,596 | ||||||
Los Angeles, CA, Department of Airports Rev. (Los Angeles International), “A”, 5%, 5/15/2029 | 3,000,000 | 3,199,080 | ||||||
Orange County, CA, Airport Rev., “A”, 5%, 7/01/2031 | 1,310,000 | 1,360,173 | ||||||
San Diego County, CA, Regional Airport Authority Rev., “A”, 5%, 7/01/2021 | 1,500,000 | 1,607,145 | ||||||
San Diego County, CA, Regional Airport Authority Rev., “B”, 5%, 7/01/2042 | 665,000 | 749,329 | ||||||
San Diego County, CA, Regional Airport Authority Rev., “B”, 5%, 7/01/2047 | 665,000 | 747,640 | ||||||
San Francisco, CA, City & County Airports Commission, International Airport Rev., “A”, 5%, 5/01/2031 | 850,000 | 934,651 | ||||||
San Francisco, CA, City & County Airports Commission, International Airport Rev., “B”, 5%, 5/01/2046 | 3,000,000 | 3,347,700 | ||||||
San Francisco, CA, City & County Airports Commission, International Airport Rev., ”D“, 5%, 5/01/2025 (Prerefunded 5/03/2021) | 570,000 | 625,182 | ||||||
San Francisco, CA, City & County Airports Commission, International Airport Rev., ”D“, 5%, 5/01/2025 | 1,430,000 | 1,564,592 | ||||||
San Jose, CA, Airport Rev., “A”, 5%, 3/01/2035 | 1,000,000 | 1,131,940 | ||||||
San Jose, CA, Airport Rev., “A”, 5%, 3/01/2047 | 2,000,000 | 2,232,760 | ||||||
San Jose, CA, Airport Rev., ”A-2“, 5.25%, 3/01/2034 | 2,560,000 | 2,789,555 | ||||||
$ | 21,146,519 | |||||||
General Obligations - General Purpose - 7.4% | ||||||||
Commonwealth of Puerto Rico, “A”, NATL, 5.5%, 7/01/2020 | $ | 820,000 | $ | 832,029 | ||||
Commonwealth of Puerto Rico, Public Improvement, “A”, AGM, 5%, 7/01/2035 | 80,000 | 82,303 | ||||||
Guam Government, “A”, 6.75%, 11/15/2029 (Prerefunded 11/15/2019) | 85,000 | 91,630 | ||||||
Guam Government, “A”, 7%, 11/15/2039 (Prerefunded 11/15/2019) | 95,000 | 102,786 | ||||||
Marin County, CA, Healthcare District (Election of 2013), “A”, 4%, 8/01/2047 | 7,980,000 | 8,320,746 | ||||||
Puerto Rico Public Buildings Authority Rev., ”H“, AMBAC, 5.5%, 7/01/2018 | 470,000 | 472,049 | ||||||
Puerto Rico Public Buildings Authority Rev., ”M-2“, AMBAC, 10%, 7/01/2035 | 400,000 | 418,596 |
Issuer | Shares/Par | Value ($) | ||||||
General Obligations - General Purpose - continued | ||||||||
State of California, 5%, 8/01/2034 (Prerefunded 8/01/2018) | $ | 1,235,000 | $ | 1,249,499 | ||||
State of California, 5%, 8/01/2034 | 965,000 | 976,329 | ||||||
State of California, 5.25%, 4/01/2035 | 2,545,000 | 2,846,481 | ||||||
State of California, 6%, 11/01/2039 | 3,000,000 | 3,199,950 | ||||||
State of California, 5.5%, 3/01/2040 | 3,670,000 | 3,921,028 | ||||||
State of California, 5.25%, 11/01/2040 | 2,775,000 | 3,004,826 | ||||||
State of California, Various Purpose General Obligation Refunding, “C”, 4%, 8/01/2037 | 1,700,000 | 1,796,220 | ||||||
$ | 27,314,472 | |||||||
General Obligations - Schools - 13.8% | ||||||||
Beverly Hills, CA, Unified School District (Election of 2008), Capital Appreciation, 0%, 8/01/2029 | $ | 4,335,000 | $ | 3,080,061 | ||||
Centinela Valley, CA, Union High School District, General Obligation (2022 Crossover), “B”, AGM, 3%, 8/01/2044 | 2,485,000 | 2,240,501 | ||||||
Contra Costa County, CA, Lafayette School District (Election of 2016), “A”, 2.25%, 8/01/2032 | 400,000 | 349,996 | ||||||
Dublin, CA, Unified School District (Election of 2016), “B”, 4%, 8/01/2043 | 1,945,000 | 2,047,093 | ||||||
Folsom Cordova, CA, Unified School District (Election of 2012), “A”, 5%, 10/01/2038 | 2,465,000 | 2,758,039 | ||||||
Garvey, CA, School District (Election of 2004), Capital Appreciation, AGM, 0%, 8/01/2031 | 2,120,000 | 1,336,808 | ||||||
Lake Tahoe, CA, Unified School District (Election of 2008), Convertible Capital Appreciation, AGM, 0% to 8/01/2032, 6.375% to 8/01/2045 | 870,000 | 608,696 | ||||||
Madera, CA, Unified School District (Election of 2006), Capital Appreciation, NATL, 0%, 8/01/2028 | 1,230,000 | 877,199 | ||||||
Mendocino Lake, CA, Community College District Rev. (Election of 2006), Capital Appreciation, “B”, AGM, 0%, 8/01/2032 | 1,570,000 | 937,667 | ||||||
Montebello, CA, Unified School District (Election of 2016), “A”, 4%, 8/01/2046 | 1,570,000 | 1,614,776 | ||||||
Moorpark, CA, Unified School District (Election of 2008), Capital Appreciation, “A”, ASSD GTY, 0%, 8/01/2033 | 500,000 | 283,765 | ||||||
Moreland, CA, School District (Election of 2002), Capital Appreciation, “B”, FGIC, 0%, 8/01/2028 | 1,440,000 | 1,030,104 | ||||||
Mount Diablo, CA, Unified School District (Election of 2010), Convertible Capital Appreciation, “A”AGM, 0% to 8/01/2019, 6% to 8/01/2030 | 3,000,000 | 2,825,070 | ||||||
Mount San Antonio, CA, Community College District Rev. (Election of 2008), Convertible Capital Appreciation, 0% to 8/01/2028, 6.25% to 8/01/2043 | 4,145,000 | 3,414,527 |
29
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
General Obligations - Schools - continued | ||||||||
Napa Valley, CA, Unified School District (Election of 2006), Capital Appreciation, “A”, 0%, 8/01/2029 | $ | 3,385,000 | $ | 2,341,574 | ||||
Oakland, CA, Unified School District Rev., AGM, 5%, 8/01/2028 | 830,000 | 974,188 | ||||||
Oakland, CA, Unified School District Rev., AGM, 5%, 8/01/2030 | 830,000 | 965,705 | ||||||
Orange County, CA, Anaheim Elementary School District (Election of 2010), 2.75%, 8/01/2038 | 490,000 | 428,353 | ||||||
Oxnard, CA School District (Ventura County), “A”, BAM, 5%, 8/01/2045 | 2,590,000 | 2,965,550 | ||||||
Placer & Nevada Counties, CA, Tahoe-Trukee Unified School District Election of 2014 (School Facilities Improvement District No. 1), “B”, 5%, 8/01/2033 | 500,000 | 584,830 | ||||||
Placer & Nevada Counties, CA, Tahoe-Trukee Unified School District Election of 2014 (School Facilities Improvement District No. 1), “B”, 5%, 8/01/2034 | 1,400,000 | 1,629,586 | ||||||
Placer & Nevada Counties, CA, Tahoe-Trukee Unified School District Election of 2014 (School Facilities Improvement District No. 1), “B”, 5%, 8/01/2035 | 1,105,000 | 1,280,861 | ||||||
San Bernardino, CA, City Unified School District, “A”, AGM, 5%, 8/01/2023 | 600,000 | 685,956 | ||||||
San Diego, CA, Community College District (Election of 2002), Convertible Capital Appreciation, 0% to 8/01/2019, 6% to 8/01/2033 | 2,000,000 | 2,337,300 | ||||||
San Diego, CA, Unified School District (Election of 2008), Capital Appreciation, ”G“, 0%, 7/01/2034 | 1,235,000 | 585,822 | ||||||
San Diego, CA, Unified School District (Election of 2012), “I”, 4%, 7/01/2047 | 2,145,000 | 2,244,528 | ||||||
San Joaquin, CA, Delta Community College District (Election of 2004), Capital Appreciation, “B”, AGM, 0%, 8/01/2018 | 2,350,000 | 2,337,733 | ||||||
San Jose, CA, Evergreen Community College District (Election of 2010), “A”, 5%, 8/01/2041 | 1,235,000 | 1,364,057 | ||||||
San Mateo County, CA, Community College District (Election of 2001), Capital Appreciation, “A”, NATL, 0%, 9/01/2021 | 4,300,000 | 4,032,755 | ||||||
San Mateo County, CA, Union High School District, “E”, 3%, 9/01/2041 | 3,095,000 | 2,778,598 | ||||||
$ | 50,941,698 | |||||||
Healthcare Revenue - Hospitals - 17.0% | ||||||||
California Health Facilities Financing Authority Rev. (Balance Providence), 6.5%, 10/01/2038 (Prerefunded 10/01/2018) | $ | 1,720,000 | $ | 1,762,123 | ||||
California Health Facilities Financing Authority Rev. (Catholic Healthcare West), “A”, 6%, 7/01/2029 (Prerefunded 7/01/2019) | 1,500,000 | 1,580,580 | ||||||
California Health Facilities Financing Authority Rev. (Children’s Hospital Los Angeles), “A”, 5%, 8/15/2042 | 2,550,000 | 2,846,641 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
California Health Facilities Financing Authority Rev. (Children’s Hospital of Orange County), 6.25%, 11/01/2029 | $ | 2,000,000 | $ | 2,143,000 | ||||
California Health Facilities Financing Authority Rev. (El Camino Hospital), 5%, 2/01/2037 | 1,000,000 | 1,135,790 | ||||||
California Health Facilities Financing Authority Rev. (Marshall Medical Center), 5%, 11/01/2033 | 750,000 | 845,603 | ||||||
California Health Facilities Financing Authority Rev. (Providence Health & Services), “B”, 5.5%, 10/01/2039 | 1,000,000 | 1,052,190 | ||||||
California Health Facilities Financing Authority Rev. (Providence Health & Services), “C”, 6.5%, 10/01/2033 (Prerefunded 10/01/2018) | 1,500,000 | 1,536,735 | ||||||
California Health Facilities Financing Authority Rev. (Providence Health & Services), “C”, 6.5%, 10/01/2038 (Prerefunded 10/01/2018) | 30,000 | 30,735 | ||||||
California Health Facilities Financing Authority Rev. (Providence St. Joseph Health System), “A”, 3%, 10/01/2041 | 1,380,000 | 1,245,381 | ||||||
California Health Facilities Financing Authority Rev. (Stanford Health System), “A”, 4%, 11/15/2040 | 1,160,000 | 1,203,140 | ||||||
California Health Facilities Financing Authority Rev. (Sutter Health), “A”, 5%, 11/15/2038 | 1,000,000 | 1,148,810 | ||||||
California Health Facilities Financing Authority Rev. (Sutter Health), “B”, 5%, 11/15/2046 | 3,180,000 | 3,590,093 | ||||||
California Municipal Finance Authority Rev. (Community Medical Centers), “A”, 5%, 2/01/2036 | 1,275,000 | 1,418,080 | ||||||
California Municipal Finance Authority Rev. (Community Medical Centers), “A”, 5%, 2/01/2037 | 850,000 | 941,987 | ||||||
California Municipal Finance Authority Rev. (Community Medical Centers), “A”, 5%, 2/01/2042 | 425,000 | 466,935 | ||||||
California Municipal Finance Authority Rev. (Eisenhower Medical Center), 5%, 7/01/2042 | 2,000,000 | 2,220,080 | ||||||
California Municipal Finance Authority Rev. (Eisenhower Medical Center), “A”, 5%, 7/01/2047 | 1,000,000 | 1,105,890 | ||||||
California Municipal Finance Authority Rev. (Northbay Healthcare Group), 5%, 11/01/2028 | 205,000 | 227,753 | ||||||
California Municipal Finance Authority Rev. (Northbay Healthcare Group), 5%, 11/01/2029 | 165,000 | 183,211 | ||||||
California Municipal Finance Authority Rev. (Northbay Healthcare Group), 5%, 11/01/2030 | 85,000 | 94,115 | ||||||
California Municipal Finance Authority Rev. (Northbay Healthcare Group), 5%, 11/01/2035 | 315,000 | 342,925 | ||||||
California Municipal Finance Authority Rev. (Northbay Healthcare Group), 5%, 11/01/2044 | 415,000 | 444,980 | ||||||
California Municipal Finance Authority Rev. (NorthBay Healthcare Group), “A”, 5.25%, 11/01/2047 | 1,500,000 | 1,629,285 | ||||||
California Public Finance Authority Rev. (Henry Mayo Newhall Hospital), 5%, 10/15/2047 | 2,545,000 | 2,767,713 |
30
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
California Statewide Communities Development Authority Rev. (Community Hospital of the Monterey Peninsula), “A”, 6%, 6/01/2033 (Prerefunded 6/01/2021) | $ | 1,250,000 | $ | 1,412,238 | ||||
California Statewide Communities Development Authority Rev. (Enloe Medical Center), CALHF, 6.25%, 8/15/2033 (Prerefunded 8/15/2018) | 2,000,000 | 2,035,380 | ||||||
California Statewide Communities Development Authority Rev. (Enloe Medical Center), “A”, CALHF, 5.5%, 8/15/2023 | 1,000,000 | 1,014,400 | ||||||
California Statewide Communities Development Authority Rev. (John Muir Health), “A”, 5.125%, 7/01/2039 (Prerefunded 7/01/2019) | 1,000,000 | 1,042,980 | ||||||
California Statewide Communities Development Authority Rev. (Kaiser Permanente), ”A2“, 5%, 11/01/2047 | 2,000,000 | 2,589,460 | ||||||
California Statewide Communities Development Authority Rev. (Loma Linda University Medical Center), “A”, 5.5%, 12/01/2054 | 1,650,000 | 1,792,378 | ||||||
California Statewide Communities Development Authority Rev. (Loma Linda University Medical Center), “A”, 5.25%, 12/01/2056 | 1,000,000 | 1,070,430 | ||||||
California Statewide Communities Development Authority Rev. (Redlands Community Hospital), 5%, 10/01/2046 | 1,925,000 | 2,114,824 | ||||||
California Statewide Communities Development Authority Rev. (Santa Ynez Valley Cottage Hospital), 5.25%, 11/01/2030 | 1,740,000 | 1,865,471 | ||||||
California Statewide Communities Development Authority Rev. (Sutter Health), “A”, 5%, 8/15/2032 | 390,000 | 431,960 | ||||||
California Statewide Communities Development Authority Rev. (Trinity Health Corp.), 5%, 12/01/2041 | 2,550,000 | 2,807,320 | ||||||
Madera County, CA, COP (Children’s Hospital Central California), 5.375%, 3/15/2036 | 3,000,000 | 3,168,990 | ||||||
Palomar Health, CA, Refunding Rev., AGM, 5%, 11/01/2047 | 2,000,000 | 2,245,760 | ||||||
Palomar Pomerado Health Care District, CA, COP, 6.75%, 11/01/2039 (Prerefunded 11/01/2019) | 1,805,000 | 1,947,469 | ||||||
San Buenaventura, CA, Rev. (Community Memorial Health System), 7.5%, 12/01/2041 | 1,000,000 | 1,120,190 | ||||||
Upland, CA, COP (San Antonio Regional Hospital), 4%, 1/01/2042 | 1,000,000 | 1,000,750 | ||||||
Upland, CA, COP (San Antonio Regional Hospital), 5%, 1/01/2047 | 1,000,000 | 1,113,280 | ||||||
Washington Township, CA, Health Care District Rev., “A”, 6.25%, 7/01/2039 | 1,000,000 | 1,040,230 | ||||||
Washington Township, CA, Health Care District Rev., “A”, 5%, 7/01/2042 | 1,000,000 | 1,094,380 | ||||||
$ | 62,871,665 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Long Term Care - 4.4% | ||||||||
ABAG Finance Authority for Non-Profit Corps., CA, Rev. (Episcopal Senior Communities), 6.125%, 7/01/2041 | $ | 850,000 | $ | 938,136 | ||||
ABAG Finance Authority for Non-Profit Corps., CA, Rev. (Eskaton Properties, Inc.), 5%, 11/15/2035 | 1,270,000 | 1,385,265 | ||||||
California Health Facilities Financing Authority Rev. (Northern California Presbyterian Homes and Services, Inc.), 5%, 7/01/2034 | 700,000 | 791,490 | ||||||
California Health Facilities Financing Authority Rev. (Northern California Presbyterian Homes and Services, Inc.), 5%, 7/01/2039 | 1,000,000 | 1,117,580 | ||||||
California Municipal Finance Authority Rev. (Channing House Project), “B”, 5%, 5/15/2047 | 2,000,000 | 2,275,840 | ||||||
California Statewide Communities Development Authority Rev. (899 Charleston Project), “A”, 5.25%, 11/01/2044 | 1,405,000 | 1,492,293 | ||||||
California Statewide Communities Development Authority Rev. (American Baptist Homes of the West), 6.25%, 10/01/2039 | 1,500,000 | 1,585,860 | ||||||
California Statewide Communities Development Authority Rev. (Episcopal Communities & Services for Seniors Obligated Group), 5%, 5/15/2047 | 1,785,000 | 1,907,237 | ||||||
California Statewide Communities Development Authority Rev. (Front Port Communities and Services), “A”, 4%, 4/01/2042 | 735,000 | 748,921 | ||||||
California Statewide Communities Development Authority Rev. (Front Port Communities and Services), “A”, 5%, 4/01/2047 | 1,835,000 | 2,039,841 | ||||||
California Statewide Communities Development Authority Rev. (The Terraces at San Joaquin Gardens), “A”, 6%, 10/01/2042 | 750,000 | 815,648 | ||||||
Eden Township, CA, Healthcare District, COP, 6.125%, 6/01/2034 (Prerefunded 6/01/2020) | 1,090,000 | 1,192,133 | ||||||
$ | 16,290,244 | |||||||
Miscellaneous Revenue - Other - 0.9% | ||||||||
California Infrastructure & Economic Development Bank Rev. (Academy of Motion Picture Arts and Sciences Obligated Group), “A”, 5%, 11/01/2034 | $ | 830,000 | $ | 933,708 | ||||
California Infrastructure & Economic Development Bank Rev. (Academy of Motion Picture Arts and Sciences Obligated Group), “A”, 5%, 11/01/2035 | 830,000 | 931,418 | ||||||
Long Beach, CA, Marina Rev. (Alamitos Bay Marina Project), 5%, 5/15/2031 | 1,335,000 | 1,501,274 | ||||||
$ | 3,366,400 | |||||||
Port Revenue - 0.5% | ||||||||
Alameda, CA, Corridor Transportation Authority Second Subordinate Lien Rev., “B”, AGM, 5%, 10/01/2036 | $ | 1,710,000 | $ | 1,944,167 |
31
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Sales & Excise Tax Revenue - 0.7% | ||||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, AMBAC, 0%, 8/01/2054 | $ | 1,060,000 | $ | 136,507 | ||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2040 | 520,000 | 135,351 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2041 | 420,000 | 103,391 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2042 | 1,090,000 | 253,294 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2043 | 405,000 | 88,950 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2044 | 260,000 | 54,135 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2045 | 180,000 | 35,537 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2046 | 3,715,000 | 695,671 | ||||||
Riverside County, CA, Transportation Commission Sales Tax Rev. (Limited Tax), “A”, 2%, 6/01/2029 | 1,000,000 | 909,490 | ||||||
$ | 2,412,326 | |||||||
Secondary Schools - 3.1% | ||||||||
California Municipal Finance Authority Charter School Lease Rev. (Nova Academy Project), “A”, 5%, 6/15/2036 | $ | 750,000 | $ | 766,650 | ||||
California Municipal Finance Authority Education Rev. (American Heritage Education Foundation Project), “A”, 5%, 6/01/2046 | 750,000 | 809,333 | ||||||
California Municipal Finance Authority Rev. (Partnerships to Uplift Communities Project), “A”, 5%, 8/01/2032 | 825,000 | 841,657 | ||||||
California School Finance Authority, Charter School Rev. (Aspire Public Schools - Obligated Group), 5%, 8/01/2040 | 415,000 | 446,847 | ||||||
California School Finance Authority, Charter School Rev. (Aspire Public Schools - Obligated Group), 5%, 8/01/2041 | 500,000 | 538,035 | ||||||
California School Finance Authority, Charter School Rev. (Aspire Public Schools - Obligated Group), 5%, 8/01/2045 | 415,000 | 445,473 | ||||||
California School Finance Authority, Charter School Rev. (Downtown Prep - Obligated Group), 5%, 6/01/2046 | 1,000,000 | 1,022,800 | ||||||
California School Finance Authority, School Facility Rev. (Alliance for College-Ready Public Schools Projects), “A”, 5%, 7/01/2030 | 1,245,000 | 1,383,432 | ||||||
California School Finance Authority, School Facility Rev. (Kipp LA Projects), “A”, 5%, 7/01/2034 | 530,000 | 577,318 |
Issuer | Shares/Par | Value ($) | ||||||
Secondary Schools - continued | ||||||||
California School Finance Authority, School Facility Rev. (Kipp LA Projects), “A”, 5%, 7/01/2037 | $ | 505,000 | $ | 560,348 | ||||
California School Finance Authority, School Facility Rev. (Kipp LA Projects), “A”, 5.125%, 7/01/2044 | 470,000 | 509,739 | ||||||
California School Finance Authority, School Facility Rev. (Kipp LA Projects), “A”, 5%, 7/01/2047 | 745,000 | 818,978 | ||||||
California Statewide Communities Development Authority School Facility Rev. (Alliance for College-Ready Public Schools), “A”, 6.375%, 7/01/2047 | 1,270,000 | 1,396,276 | ||||||
California Statewide Communities Development Authority School Facility Rev. (Aspire Public Schools), 6.125%, 7/01/2046 (Prerefunded 1/01/2019) | 1,300,000 | 1,343,810 | ||||||
$ | 11,460,696 | |||||||
State & Local Agencies - 5.3% | ||||||||
Banning, CA, COP, Water Systems Improvement Project, ETM, AMBAC, 8%, 1/01/2019 | $ | 110,000 | $ | 115,244 | ||||
California Public Works Board Lease Rev. (Judicial Council Projects), “A”, 5%, 3/01/2028 | 2,120,000 | 2,384,343 | ||||||
California Public Works Board Lease Rev., Department of Education (Riverside Campus Project), “B”, 6%, 4/01/2026 | 2,000,000 | 2,088,920 | ||||||
California Public Works Board Lease Rev., Department of General Services (Office Buildings 8 & 9 Renovation), “A”, 6.25%, 4/01/2034 (Prerefunded 4/01/2019) | 1,500,000 | 1,570,365 | ||||||
California Public Works Board Lease Rev., Department of Justice, ”D“, 5.25%, 11/01/2020 | 1,565,000 | 1,569,225 | ||||||
Delaware Valley, PA, Regional Finance Authority, “C”, FLR, 2.094% (LIBOR-3mo. + 0.75%), 6/01/2037 | 2,360,000 | 2,092,164 | ||||||
Fresno, CA, Joint Powers Financing Authority Rev., Lease Revenue Refunding Bonds (Master Lease Projects), “A”, AGM, 5%, 4/01/2034 | 1,000,000 | 1,145,610 | ||||||
Fresno, CA, Joint Powers Financing Authority Rev., Lease Revenue Refunding Bonds (Master Lease Projects), “A”, AGM, 5%, 4/01/2037 | 800,000 | 906,424 | ||||||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A”, AGM, 4.55%, 6/01/2022 | 3,000,000 | 3,015,000 | ||||||
Ontario Public Finance Authority Lease Rev. , AGM, 5%, 11/01/2042 | 1,025,000 | 1,177,048 | ||||||
Sacramento, CA, City Financing Authority Rev. (Master Lease Program Facilities), BAM, 5%, 12/01/2030 | 500,000 | 574,610 | ||||||
Sacramento, CA, City Financing Authority Rev. (Master Lease Program Facilities), BAM, 5%, 12/01/2031 | 1,000,000 | 1,144,780 |
32
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
State & Local Agencies - continued | ||||||||
Sacramento, CA, City Financing Authority Rev. (Master Lease Program Facilities), BAM, 5%, 12/01/2032 | $ | 550,000 | $ | 627,600 | ||||
San Diego, CA, Public Facilities Financing Authority Lease Rev. (Master Refunding Project), “A”, 5.25%, 3/01/2040 | 1,000,000 | 1,072,930 | ||||||
$ | 19,484,263 | |||||||
Tax - Other - 2.9% | ||||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/2024 (Prerefunded 12/01/2019) | $ | 445,000 | $ | 472,114 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/2029 (Prerefunded 12/01/2019) | 145,000 | 154,426 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2033 | 505,000 | 532,341 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2034 | 315,000 | 331,119 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2035 | 315,000 | 330,186 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2036 | 170,000 | 177,818 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2046 | 500,000 | 518,235 | ||||||
Puerto Rico Convention Center District Authority, Hotel Occupancy Tax Rev., “A”, AMBAC, 5%, 7/01/2031 | 535,000 | 517,853 | ||||||
Puerto Rico Infrastructure Financing Authority Rev., Capital Appreciation, “A”, AMBAC, 0%, 7/01/2036 | 4,870,000 | 1,700,799 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2024 | 665,000 | 686,912 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2026 | 1,930,000 | 1,991,779 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2027 | 1,145,000 | 1,179,213 | ||||||
West Contra Costa, CA, Healthcare District, AMBAC, 5.5%, 7/01/2029 | 2,000,000 | 2,003,400 | ||||||
$ | 10,596,195 | |||||||
Tax Assessment - 8.2% | ||||||||
Elk Grove, CA, Finance Authority Special Tax Rev., 5%, 9/01/2027 | $ | 2,000,000 | $ | 2,309,960 | ||||
Fontana, CA, Redevelopment Agency Tax Allocation (Jurupa Hills Redevelopment Project), “A”, 5.5%, 10/01/2027 | 3,350,000 | 3,413,248 | ||||||
Huntington Beach, CA, Community Facilities District Special Tax (Grand Coast Resort), 5.125%, 9/01/2031 | 1,000,000 | 1,078,420 | ||||||
Jurupa, CA, Community Facilities Services District, Special Tax (Eastvale Area District #31), “A”, 5%, 9/01/2037 | 1,000,000 | 1,065,420 |
Issuer | Shares/Par | Value ($) | ||||||
Tax Assessment - continued | ||||||||
Lake Elsinore, CA, Public Financing Authority Rev., 5%, 9/01/2035 | $ | 1,000,000 | $ | 1,105,390 | ||||
Lee Lake, CA, Public Financing Authority Senior Lien Rev., “A”, 5.125%, 9/01/2035 | 1,000,000 | 1,086,890 | ||||||
Los Angeles County, CA, Redevelopment Refunding Authority Tax Allocation Rev. ”D“, AGM, 5%, 9/01/2022 | 340,000 | 382,395 | ||||||
Los Angeles County, CA, Redevelopment Refunding Authority Tax Allocation Rev. ”D“, AGM, 5%, 9/01/2023 | 340,000 | 388,868 | ||||||
North Natomas, CA, Community Facilities District Special Tax, ”4-E“, 5.25%, 9/01/2033 | 840,000 | 938,179 | ||||||
Pittsburg, CA, Redevelopment Successor Agency, Tax Allocation (Los Medanos Community Development Project), AGM, 5%, 8/01/2028 | 650,000 | 737,614 | ||||||
Pittsburg, CA, Redevelopment Successor Agency, Tax Allocation (Los Medanos Community Development Project), AGM, 5%, 8/01/2029 | 1,350,000 | 1,524,420 | ||||||
Rancho Cucamonga, CA, Community Facilities District Special Tax, 5.25%, 9/01/2033 | 1,000,000 | 1,077,120 | ||||||
Rancho Cucamonga, CA, Redevelopment Agency (Successor Agency To The Rancho Redevelopment Project Area) Tax Allocation, AGM, 5%, 9/01/2032 | 2,625,000 | 2,988,116 | ||||||
Rancho Cucamonga, CA, Redevelopment Agency Tax Allocation Refunding Rev. (Successor of the Rancho Redevelopment Project), NATL, 4%, 9/01/2033 | 1,000,000 | 1,058,560 | ||||||
Riverside County, CA, Jurupa Valley Redevelopment Project Rev., “B”, AGM, 5%, 10/01/2030 | 890,000 | 1,025,440 | ||||||
Riverside County, CA, Jurupa Valley Redevelopment Project Rev., “B”, AGM, 5%, 10/01/2031 | 1,095,000 | 1,246,526 | ||||||
Riverside County, CA, Redevelopment Agency, Tax Allocation, “A”, AGM, 5%, 10/01/2034 | 1,385,000 | 1,557,793 | ||||||
San Francisco, CA, City & County Redevelopment Financing Authority Rev., Tax Allocation (Mission Bay North Redevelopment Project), “C”, 6.375%, 8/01/2032 (Prerefunded 8/01/2019) | 1,000,000 | 1,062,730 | ||||||
San Francisco, CA, City & County Redevelopment Financing Authority Rev., Tax Allocation (Mission Bay North Redevelopment Project), “C”, 6.5%, 8/01/2039 (Prerefunded 8/01/2019) | 1,000,000 | 1,063,680 | ||||||
San Francisco, CA, City & County Redevelopment Successor Agency, Tax Allocation (Mission Bay South Redevelopment Project), “A”, 5%, 8/01/2043 | 750,000 | 838,125 | ||||||
San Francisco, CA, City & County Redevelopment Successor Agency, Tax Allocation (Mission Bay South Redevelopment Project), “B”, NATL, 5%, 8/01/2043 | 1,100,000 | 1,239,414 |
33
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Tax Assessment - continued | ||||||||
San Francisco, CA, City & County Redevelopment Successor Agency, Tax Allocation (Mission Bay South Redevelopment Project), “C”, NATL, 5%, 8/01/2041 Santa Cruz County, CA, Redevelopment | $ | 1,750,000 | $ | 1,978,602 | ||||
Agency Tax Allocation Rev., 5%, 9/01/2023 | 1,000,000 | 1,145,930 | ||||||
$ | 30,312,840 | |||||||
Tobacco - 2.3% | ||||||||
Buckeye, OH, Tobacco Settlement Financing Authority Rev., ”A-2“, 6%, 6/01/2042 | $ | 1,080,000 | $ | 1,069,200 | ||||
Buckeye, OH, Tobacco Settlement Financing Authority Rev., ”A-2“, 6.5%, 6/01/2047 | 1,195,000 | 1,202,469 | ||||||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Asset-Backed, ”A-1“, 5%, 6/01/2029 | 2,000,000 | 2,266,840 | ||||||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A”, 5.75%, 6/01/2047 | 1,800,000 | 1,810,620 | ||||||
Illinois Railsplitter Tobacco Settlement Authority Rev., 6%, 6/01/2028 (Prerefunded 6/01/2021) | 1,800,000 | 2,024,748 | ||||||
$ | 8,373,877 | |||||||
Toll Roads - 1.6% | ||||||||
Bay Area Toll Authority, California Toll Bridge Rev., ”S-7“, 4%, 4/01/2033 | $ | 2,985,000 | $ | 3,184,786 | ||||
Bay Area Toll Authority, California Toll Bridge Rev., ”S-7“, 4%, 4/01/2034 | 855,000 | 908,780 | ||||||
Riverside County, CA, Transportation Commission, Toll Rev., “A”, 5.75%, 6/01/2044 | 1,680,000 | 1,871,251 | ||||||
$ | 5,964,817 | |||||||
Transportation - Special Tax - 2.3% | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”CC“, AGM, 5.25%, 7/01/2032 | $ | 95,000 | $ | 100,975 | ||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”CC“, AGM, 5.25%, 7/01/2033 | 150,000 | 159,558 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”D“, AGM, 5%, 7/01/2032 | 415,000 | 415,349 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”J“, NATL, 5%, 7/01/2029 | 55,000 | 53,114 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”L“, AMBAC, 5.25%, 7/01/2038 | 2,060,000 | 1,997,417 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”L“, NATL, 5.25%, 7/01/2035 | 2,300,000 | 2,187,116 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”N“, ASSD GTY, 5.25%, 7/01/2034 | 2,290,000 | 2,436,995 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”N“, ASSD GTY, 5.25%, 7/01/2036 | 690,000 | 735,223 |
Issuer | Shares/Par | Value ($) | ||||||
Transportation - Special Tax - continued | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”N“, NATL, 5.25%, 7/01/2032 | $ | 185,000 | $ | 178,915 | ||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”N“, NATL, 5.25%, 7/01/2033 | 170,000 | 163,633 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Unrefunded Rev., “A”, NATL, 5%, 7/01/2038 | 65,000 | 59,213 | ||||||
$ | 8,487,508 | |||||||
Universities - Colleges - 9.1% | ||||||||
California Educational Facilities Authority Rev. (Chapman University), “B”, 4%, 4/01/2047 | $ | 1,000,000 | $ | 1,025,860 | ||||
California Educational Facilities Authority Rev. (Loma Linda University), “A”, 5%, 4/01/2036 | 425,000 | 480,480 | ||||||
California Educational Facilities Authority Rev. (Loma Linda University), “A”, 5%, 4/01/2037 | 1,265,000 | 1,426,983 | ||||||
California Educational Facilities Authority Rev. (Pitzer College), 6%, 4/01/2040 (Prerefunded 4/01/2020) | 3,000,000 | 3,255,630 | ||||||
California Educational Facilities Authority Rev. (Santa Clara University), 5%, 4/01/2032 | 1,000,000 | 1,160,210 | ||||||
California Educational Facilities Authority Rev. (Stanford University), ”U-7“, 5%, 6/01/2046 | 1,465,000 | 1,919,384 | ||||||
California Educational Facilities Authority Rev. (University of Redlands), “A”, 5%, 10/01/2036 | 1,000,000 | 1,133,620 | ||||||
California Educational Facilities Authority Rev. (University of Redlands), “A”, 5%, 10/01/2037 | 1,000,000 | 1,129,850 | ||||||
California Educational Facilities Authority Rev. (University of Redlands), “A”, 5%, 10/01/2038 | 500,000 | 563,040 | ||||||
California Educational Facilities Authority Rev. (University of San Francisco), 6.125%, 10/01/2030 (Prerefunded 10/01/2021) | 860,000 | 984,167 | ||||||
California Educational Facilities Authority Rev. (University of San Francisco), 6.125%, 10/01/2030 | 900,000 | 1,029,942 | ||||||
California Educational Facilities Authority Rev. (University of The Pacific), 5.25%, 11/01/2029 | 1,265,000 | 1,328,111 | ||||||
California Municipal Finance Authority Rev. (Azusa Pacific University Project), “B”, 5%, 4/01/2035 | 1,655,000 | 1,811,381 | ||||||
California Municipal Finance Authority Rev. (Biola University), 5.8%, 10/01/2028 (Prerefunded 10/01/2018) | 2,000,000 | 2,042,600 | ||||||
California Municipal Finance Authority Rev. (Biola University), 5%, 10/01/2033 | 625,000 | 719,800 | ||||||
California Municipal Finance Authority Rev. (Biola University), 5%, 10/01/2035 | 1,195,000 | 1,367,821 | ||||||
California Municipal Finance Authority Rev. (Biola University), 5%, 10/01/2039 | 1,000,000 | 1,134,110 | ||||||
California Municipal Finance Authority Rev. (University of La Verne), “A”, 6.125%, 6/01/2030 (Prerefunded 6/01/2020) | 1,500,000 | 1,643,910 | ||||||
California Municipal Finance Authority Rev. (University of La Verne), “A”, 6.25%, 6/01/2040 (Prerefunded 6/01/2020) | 1,500,000 | 1,647,885 |
34
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
California Municipal Finance Authority Rev. (University of La Verne), “A”, 5%, 6/01/2043 | $ | 1,500,000 | $ | 1,695,060 | ||||
California Public Works Board Lease Rev. (The Regents of the University of California), 5%, 12/01/2028 (Prerefunded 12/01/2021) | 2,125,000 | 2,367,229 | ||||||
California Public Works Board Lease Rev. (The Regents of the University of California), 5%, 4/01/2034 (Prerefunded 4/01/2019) | 1,500,000 | 1,551,180 | ||||||
California State University Rev., “A”, 5%, 11/01/2024 | 2,130,000 | 2,360,423 | ||||||
$ | 33,778,676 | |||||||
Universities - Dormitories - 1.6% | ||||||||
California Municipal Finance Authority, Student Housing Rev. (Bowles Hall Foundation) “A”, 5%, 6/01/2035 | $ | 225,000 | $ | 245,014 | ||||
California Public Finance Authority University Housing Rev. (Nccd - Claremont Properties LLC - Claremont Colleges Project), “A”, 5%, 7/01/2037 | 725,000 | 774,169 | ||||||
California Public Finance Authority University Housing Rev. (Nccd - Claremont Properties LLC - Claremont Colleges Project), “A”, 5%, 7/01/2047 | 275,000 | 290,614 | ||||||
California Statewide Communities Development Authority Rev. (Lancer Plaza Project), 5.875%, 11/01/2043 | 1,270,000 | 1,414,793 | ||||||
California Statewide Communities Development Authority Rev. (Student Housing, SUCI East Campus), 6%, 5/15/2040 (Prerefunded 5/15/2018) | 2,000,000 | 2,010,500 | ||||||
California Statewide Communities Development Authority Rev. (University of California, Irvine East Campus Apartments), 5%, 5/15/2034 | 1,000,000 | 1,121,660 | ||||||
$ | 5,856,750 | |||||||
Utilities - Cogeneration - 0.1% | ||||||||
California Pollution Control Financing Authority, Water Furnishing Rev. (San Diego County Water Desalination Project Pipeline), 5%, 11/21/2045 | $ | 345,000 | $ | 350,713 | ||||
Utilities - Investor Owned - 0.6% | ||||||||
California Pollution Control Financing Authority, Water Facilities Rev. (American Water Capital Corp. Project), 5.25%, 8/01/2040 | $ | 2,000,000 | $ | 2,140,440 | ||||
Utilities - Municipal Owned - 3.9% | ||||||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/2039 | $ | 230,000 | $ | 249,311 | ||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/2044 | 260,000 | 280,888 | ||||||
Imperial, CA, Irrigation District Electric Rev., “B”, 5%, 11/01/2025 (Prerefunded 11/01/2020) | 1,015,000 | 1,100,991 |
Issuer | Shares/Par | Value ($) | ||||||
Utilities - Municipal Owned - continued | ||||||||
Imperial, CA, Irrigation District Electric Rev., “B”, 5%, 11/01/2026 (Prerefunded 11/01/2020) | $ | 1,245,000 | $ | 1,350,476 | ||||
Los Angeles, CA, Department of Water & Power Water System Rev., “A”, 5%, 7/01/2041 | 3,000,000 | 3,425,130 | ||||||
Puerto Rico Electric Power Authority Rev., ”RR“, NATL, 5%, 7/01/2022 | 1,315,000 | 1,314,211 | ||||||
Puerto Rico Electric Power Authority Rev., ”VV“, NATL, 5.25%, 7/01/2032 | 60,000 | 58,027 | ||||||
Sacramento, CA, Municipal Utility District Electric Rev., ”X“, 5%, 8/15/2025 (Prerefunded 8/15/2021) | 545,000 | 600,399 | ||||||
Sacramento, CA, Municipal Utility District Electric Rev., Unrefunded Balance, ”X“, 5%, 8/15/2025 | 1,585,000 | 1,749,935 | ||||||
Tuolumne Wind Project Authority Rev. (Tuolomne Co.), “A”, 5.625%, 1/01/2029 (Prerefunded 1/01/2019) | 2,000,000 | 2,060,800 | ||||||
Vernon, CA, Electric System Rev., “A”, 5.5%, 8/01/2041 | 2,130,000 | 2,324,618 | ||||||
$ | 14,514,786 | |||||||
Utilities - Other - 1.9% | ||||||||
California M-S-R Energy Authority Gas Rev., “A”, 7%, 11/01/2034 | $ | 1,750,000 | $ | 2,479,715 | ||||
Long Beach, CA, Bond Finance Authority Natural Gas Purchase Rev., “A”, 5.25%, 11/15/2022 | 2,210,000 | 2,479,532 | ||||||
Southern California Public Power Authority (Natural Gas Project No. 1), “A”, 5%, 11/01/2033 | 1,655,000 | 1,962,085 | ||||||
$ | 6,921,332 | |||||||
Water & Sewer Utility Revenue - 5.4% | ||||||||
Clovis, CA, Wastewater Refunding Rev., BAM, 5%, 8/01/2037 | $ | 1,000,000 | $ | 1,156,350 | ||||
Clovis, CA, Wastewater Refunding Rev., BAM, 5%, 8/01/2038 | 1,000,000 | 1,153,720 | ||||||
Fillmore, CA, Wastewater Refunding Bonds, AGM, 5%, 5/01/2047 | 3,000,000 | 3,384,630 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5.625%, 7/01/2040 (Prerefunded 7/01/2020) | 525,000 | 569,326 | ||||||
Madera, CA, Irrigation Financing Authority Water Rev., 6.5%, 1/01/2040 (Prerefunded 1/01/2020) | 2,560,000 | 2,771,635 | ||||||
Oxnard, CA, Financing Authority, Wastewater Rev., AGM, 5%, 6/01/2030 | 1,660,000 | 1,859,300 | ||||||
Oxnard, CA, Financing Authority, Wastewater Rev., AGM, 5%, 6/01/2031 | 415,000 | 463,584 | ||||||
San Diego, CA, Public Facilities Financing Authority Sewer Rev., “A”, 5%, 5/15/2028 (Prerefunded 5/15/2019) | 350,000 | 363,510 | ||||||
Silicon Valley Clean Water, CA, Wastewater Rev., 4%, 8/01/2044 | 3,250,000 | 3,408,860 |
35
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - continued | ||||||||
Soquel Creek, CA, Water District, COP, 5%, 3/01/2043 | $ | 1,715,000 | $ | 1,889,433 | ||||
Tulare, CA, Sewer Rev., AGM, 5%, 11/15/2031 | 1,700,000 | 1,958,672 | ||||||
Tulare, CA, Sewer Rev., AGM, 5%, 11/15/2035 | 830,000 | 942,257 | ||||||
$ | 19,921,277 | |||||||
Total Municipal Bonds (Identified Cost, $349,967,913) | $ | 364,451,661 |
Investment Companies (h) - 0.5% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Money Market Funds - 0.5% | ||||||||
MFS Institutional Money Market Portfolio, 1.71% (v) (Identified Cost, $1,958,815) | 1,958,965 | $ | 1,958,769 | |||||
Other Assets, Less Liabilities - 0.8% | 2,808,612 | |||||||
Net Assets - 100.0% | $ | 369,219,042 |
See Portfolio Footnotes and Notes to Financial Statements
36
Table of Contents
PORTFOLIO OF INVESTMENTS
3/31/18
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 - 99.4% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 2.7% | ||||||||
Atlanta, GA, Airport Rev., “B”, 5%, 1/01/2033 | $ | 1,000,000 | $ | 1,130,680 | ||||
Dallas and Fort Worth, TX, International Airport Rev., “B”, 5%, 11/01/2044 | 75,000 | 82,042 | ||||||
Dallas and Fort Worth, TX, International Airport Rev., “C”, 5%, 11/01/2045 | 55,000 | 59,579 | ||||||
New York, NY, Transportation Development Corp. Special Facilities Rev. (LaGuardia Airport Terminal B Redevelopment Project), “A”, AGM, 4%, 7/01/2037 | 395,000 | 407,095 | ||||||
San Francisco, CA, City & County Airports Commission, International Airport Rev., “B”, 5%, 5/01/2046 | 265,000 | 295,713 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, 5%, 12/01/2044 | 30,000 | 33,026 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, BAM, 5%, 12/01/2039 | 35,000 | 38,641 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/2039 | 25,000 | 27,241 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/2044 | 40,000 | 43,461 | ||||||
$ | 2,117,478 | |||||||
General Obligations - General Purpose - 6.3% | ||||||||
Atlanta, GA, Public Improvement Rev., 4.875%, 12/01/2026 | $ | 1,000,000 | $ | 1,150,160 | ||||
Commonwealth of Puerto Rico, “A”, NATL, 5.5%, 7/01/2020 | 165,000 | 167,421 | ||||||
Commonwealth of Puerto Rico, Public Improvement, AGM, 5.25%, 7/01/2020 | 120,000 | 125,148 | ||||||
Commonwealth of Puerto Rico, Public Improvement, ASSD GTY, 5.5%, 7/01/2020 | 275,000 | 288,274 | ||||||
Commonwealth of Puerto Rico, Public Improvement Refunding, ”A-4“, AGM, 5%, 7/01/2031 | 50,000 | 51,675 | ||||||
Commonwealth of Puerto Rico, Public Improvement, “A”, AGM, 5%, 7/01/2035 | 165,000 | 169,750 | ||||||
Guam Government, “A”, 6.75%, 11/15/2029 (Prerefunded 11/15/2019) | 185,000 | 199,430 | ||||||
Guam Government, “A”, 7%, 11/15/2039 (Prerefunded 11/15/2019) | 25,000 | 27,049 | ||||||
Gwinnett County, GA, Development Authority Rev. (Civic & Cultural Center), 4%, 9/01/2021 | 510,000 | 537,096 | ||||||
Puerto Rico Public Buildings Authority Rev., ”H“, AMBAC, 5.5%, 7/01/2018 | 160,000 | 160,698 | ||||||
Puerto Rico Public Buildings Authority Rev., ”M-2“, AMBAC, 10%, 7/01/2035 | 130,000 | 136,044 | ||||||
State of California, 6%, 11/01/2039 | 420,000 | 447,993 | ||||||
State of Georgia, “A”, 5%, 2/01/2033 | 500,000 | 591,065 |
Issuer | Shares/Par | Value ($) | ||||||
General Obligations - General Purpose - continued | ||||||||
State of Illinois, 5%, 11/01/2027 | $ | 175,000 | $ | 182,017 | ||||
State of Illinois, ”D“, 5%, 11/01/2028 | 170,000 | 176,414 | ||||||
Villa Rica, GA, Public Facilities Authority Rev. (Water and Sewerage Project), 5%, 3/01/2039 | 500,000 | 558,845 | ||||||
$ | 4,969,079 | |||||||
General Obligations - Schools - 5.0% | ||||||||
Bryan County, GA, School District General Obligation, 4%, 8/01/2032 | $ | 500,000 | $ | 536,110 | ||||
Dalton, GA, General Obligation, 5%, 2/01/2036 | 500,000 | 584,365 | ||||||
Gwinnett County, GA, School District, 5%, 2/01/2021 | 750,000 | 816,510 | ||||||
Gwinnett County, GA, School District, 5%, 2/01/2029 | 1,000,000 | 1,158,030 | ||||||
Jefferson, GA, School District, “A”, 5.25%, 2/01/2029 | 500,000 | 546,615 | ||||||
Moorpark, CA, Unified School District (Election of 2008), Capital Appreciation, “B”, AGM, 0%, 8/01/2036 | 660,000 | 314,629 | ||||||
$ | 3,956,259 | |||||||
Healthcare Revenue - Hospitals - 19.5% | ||||||||
California Health Facilities Financing Authority Rev. (Stanford Health System), “A”, 4%, 11/15/2040 | $ | 260,000 | $ | 269,669 | ||||
Cedartown Polk County, GA, Hospital Authority Rev., Anticipation Certificates (Polk Medical Center Project), 5%, 7/01/2039 | 500,000 | 542,465 | ||||||
Clarke County, GA, Hospital Authority Rev. (Athens Regional Medical Center Project), 5%, 1/01/2032 (Prerefunded 1/01/2022) | 1,000,000 | 1,110,360 | ||||||
Cobb County, GA, Kennestone Hospital Authority Rev. (Wellstar Health System, Inc.), “B”, AMBAC, 6.25%, 4/01/2034 | 500,000 | 543,500 | ||||||
Dalton, GA, Development Authority Rev. (Hamilton Health Care System), 5%, 8/15/2028 | 500,000 | 545,545 | ||||||
DeKalb County, GA, Hospital Authority Rev. (DeKalb Medical Center, Inc.), 6.125%, 9/01/2040 | 500,000 | 535,585 | ||||||
DeKalb County, GA, Private Hospital Authority Rev. Anticipation Certificates (Children’s Healthcare), 5.25%, 11/15/2039 | 750,000 | 790,537 | ||||||
Escambia County, FL, Health Facilities Authority (Baptist Hospital, Inc.), “A”, 6%, 8/15/2036 | 350,000 | 377,465 | ||||||
Fulton County, GA, Development Authority Hospital Rev. (Wellstar Health System, Inc. Project), “A”, 5%, 4/01/2042 | 750,000 | 834,945 | ||||||
Fulton County, GA, Development Authority Rev. (Piedmont Healthcare), “A”, 5.25%, 6/15/2037 (Prerefunded 6/15/2019) | 700,000 | 730,142 | ||||||
Fulton County, GA, Development Authority Rev. (Piedmont Healthcare, Inc. Project), “A”, 5%, 7/01/2032 | 500,000 | 570,970 |
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Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Fulton County, GA, Development Authority Rev. (Wellstar Health System, Inc. Project), 5%, 4/01/2034 | $ | 1,000,000 | $ | 1,131,370 | ||||
Gainesville and Hall County, GA, Hospital Authority Rev. (Northeast Georgia Health System, Inc. Project), “B”, 5%, 2/15/2033 (Prerefunded 2/15/2020) | 385,000 | 407,653 | ||||||
Gainesville and Hall County, GA, Hospital Authority Rev. (Northeast Georgia Health System, Inc. Project), “B”, 5%, 2/15/2033 | 115,000 | 120,251 | ||||||
Georgia Medical Center Hospital Authority Rev. (Columbus Regional Healthcare System, Inc.), ASSD GTY, 6.5%, 8/01/2038 (Prerefunded 8/01/2018) | 300,000 | 304,734 | ||||||
Glynn-Brunswick, GA, Memorial Hospital Authority Rev., 5.625%, 8/01/2034 (Prerefunded 8/01/2018) | 675,000 | 683,849 | ||||||
Glynn-Brunswick, GA, Memorial Hospital Authority Rev. (Southeast Georgia Health System Project), 5%, 8/01/2028 | 500,000 | 564,625 | ||||||
Glynn-Brunswick, GA, Memorial Hospital Authority Rev., Unrefunded Balance, 5.625%, 8/01/2034 | 75,000 | 75,846 | ||||||
Hall County and Gainesville, GA, Hospital Authority Rev. (Northeast Georgia Health System, Inc.), “A”, 5%, 2/15/2042 | 1,000,000 | 1,110,230 | ||||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 7%, 8/15/2044 (Prerefunded 8/15/2019) | 200,000 | 214,028 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.25%, 7/01/2031 | 45,000 | 46,322 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.375%, 7/01/2041 | 65,000 | 66,507 | ||||||
Kentucky Economic Development Finance Authority Hospital Rev. (Owensboro Medical Health System, Inc.), “A”, 6.375%, 6/01/2040 (Prerefunded 6/01/2020) | 200,000 | 218,900 | ||||||
Kentucky Economic Development Finance Authority Hospital Rev. (Owensboro Medical Health System, Inc.), “A”, 6.5%, 3/01/2045 (Prerefunded 6/01/2020) | 135,000 | 147,963 | ||||||
Massachusetts Development Finance Agency Rev. (Partners Healthcare System Issue), “S”, 4%, 7/01/2041 | 465,000 | 477,071 | ||||||
Miami-Dade County, FL, Health Facilities Authority Hospital Rev., 6%, 8/01/2030 (Prerefunded 8/01/2020) | 35,000 | 38,243 | ||||||
Miami-Dade County, FL, Health Facilities Authority Hospital Rev., Unfunded Balance, 6%, 8/01/2030 | 10,000 | 10,784 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6%, 10/01/2027 (Prerefunded 10/01/2019) | 130,000 | 138,115 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6.125%, 10/01/2039 (Prerefunded 10/01/2019) | $ | 180,000 | $ | 191,567 | ||||
New Jersey Health Care Facilities, Financing Authority Rev. (University Hospital), “A”, AGM, 5%, 7/01/2046 | 55,000 | 60,606 | ||||||
North Carolina Medical Care Commission, Hospital Rev. (The North Carolina Baptist Hospitals, Inc.), 5.25%, 6/01/2029 | 355,000 | 379,665 | ||||||
Richmond County, GA, Hospital Authority Rev. Anticipation Certificates (University Health Services, Inc. Project), 5.5%, 1/01/2036 (Prerefunded 1/01/2019) | 750,000 | 770,970 | ||||||
Thomasville, GA, Hospital Authority Rev. Anticipation Certificates (John D. Archbold Memorial Hospital, Inc. Project), 5.125%, 11/01/2030 | 500,000 | 541,335 | ||||||
Thomasville, GA, Hospital Authority Rev. Anticipation Certificates (John D. Archbold Memorial Hospital, Inc. Project), 5.375%, 11/01/2040 | 500,000 | 544,470 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (ProHealth Care, Inc. Obligated Group), 6.625%, 2/15/2039 (Prerefunded 2/15/2019) | 385,000 | 401,028 | ||||||
$ | 15,497,315 | |||||||
Healthcare Revenue - Long Term Care - 2.5% | ||||||||
Fulton County, GA, Residential Care Facilities, Elderly Authority Rev. (Lenbrook Square Foundation, Inc. Project), ”A, 5%, 7/01/2036 | $ | 500,000 | $ | 552,210 | ||||
Gainesville and Hall County, GA, Development Authority Retirement Community Rev. (ACTS Retirement - Life Communities, Inc. Obligated Group), 5%, 11/15/2033 | 500,000 | 560,095 | ||||||
Gainesville and Hall County, GA, Development Authority Retirement Community Rev. (ACTS Retirement - Life Communities, Inc. Obligated Group), “A-2”, 6.625%, 11/15/2039 (Prerefunded 11/15/2019) | 200,000 | 215,102 | ||||||
Richmond County, GA, Development Authority Rev., Capital Appreciation, “C”, ETM, 0%, 12/01/2021 | 225,000 | 208,888 | ||||||
Savannah, GA, Economic Development Authority Rev., Capital Appreciation, “C”, ETM, 0%, 12/01/2021 | 500,000 | 465,035 | ||||||
$ | 2,001,330 | |||||||
Industrial Revenue - Other - 0.5% | ||||||||
New York Liberty Development Corp. Rev. (Goldman Sachs Headquarters), 5.25%, 10/01/2035 | $ | 330,000 | $ | 409,510 | ||||
Industrial Revenue - Paper - 0.2% | ||||||||
Rockdale County, GA, Development Authority Project Rev. (Visy Paper Project), “A”, 6.125%, 1/01/2034 | $ | 150,000 | $ | 150,260 |
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Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Miscellaneous Revenue - Other - 2.0% | ||||||||
Florida Citizens Property Insurance Corp., “A-1”, 5%, 6/01/2020 | $ | 285,000 | $ | 303,739 | ||||
Fulton County, GA, Development Authority Rev. (Robert W. Woodruff Arts Center, Inc. Project), “A”, 5%, 3/15/2036 | 500,000 | 556,785 | ||||||
Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/2040 | 75,000 | 80,455 | ||||||
Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/2044 | 110,000 | 117,728 | ||||||
New York, NY, Industrial Development Agency, Airport Facilities Rev. (Transportation Infrastructure Properties LLC), 5%, 7/01/2028 | 310,000 | 332,602 | ||||||
Texas Private Activity Surface Transportation Corp. Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 7%, 12/31/2038 | 80,000 | 94,078 | ||||||
Texas Private Activity Surface Transportation Corp. Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 6.75%, 6/30/2043 | 60,000 | 69,599 | ||||||
$ | 1,554,986 | |||||||
Multi-Family Housing Revenue - 0.7% | ||||||||
Atlanta, GA, Urban Residential Financing Authority, Multifamily Housing Rev. (Ginnie Mae Collateralized - Amal Heights), GNMA, 4.9%, 5/20/2040 | $ | 500,000 | $ | 530,730 | ||||
Sales & Excise Tax Revenue - 2.7% | ||||||||
Chicago, IL, Transit Authority Sales Tax Receipts Rev., AGM, 5%, 12/01/2046 | $ | 495,000 | $ | 539,990 | ||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6.5%, 1/15/2030 | 265,000 | 291,352 | ||||||
Guam Government Business Privilege Tax Rev., “A”, 5.25%, 1/01/2036 | 170,000 | 176,999 | ||||||
Metropolitan Atlanta, GA, Rapid Transit Tax Authority Rev., “C”, 4%, 7/01/2036 | 750,000 | 792,735 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “A”, AGM, 5%, 8/01/2040 | 35,000 | 35,450 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, AMBAC, 0%, 8/01/2054 | 210,000 | 27,044 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2040 | 110,000 | 28,632 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2041 | 90,000 | 22,155 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2042 | 220,000 | 51,124 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2043 | 85,000 | 18,668 |
Issuer | Shares/Par | Value ($) | ||||||
Sales & Excise Tax Revenue - continued | ||||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2044 | $ | 55,000 | $ | 11,452 | ||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2045 | 35,000 | 6,910 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2046 | 735,000 | 137,636 | ||||||
$ | 2,140,147 | |||||||
Secondary Schools - 0.1% | ||||||||
North Texas Education Finance Corp., Education Rev. (Uplift Education), “A”, 5.125%, 12/01/2042 | $ | 75,000 | $ | 78,670 | ||||
Single Family Housing - State - 0.7% | ||||||||
Georgia Housing & Finance Authority Rev., Single Family Mortgage, “A”, 3.5%, 6/01/2045 | $ | 540,000 | $ | 556,600 | ||||
State & Agency - Other - 2.8% | ||||||||
Carroll City-County, GA, Hospital Authority Rev. (Tanner Medical Center), 5%, 7/01/2028 | $ | 500,000 | $ | 582,865 | ||||
Carroll City-County, GA, Hospital Authority Rev. (Tanner Medical Center), 5%, 7/01/2040 (Prerefunded 7/01/2020) | 500,000 | 536,170 | ||||||
Floyd County, GA, Hospital Authority Rev. Anticipation Certificates (Floyd Medical Center Project), “B”, 5%, 7/01/2032 | 1,000,000 | 1,080,760 | ||||||
$ | 2,199,795 | |||||||
State & Local Agencies - 2.9% | ||||||||
Colorado State University Board of Governors, System Enterprise Refunding Rev., “E”, 4%, 3/01/2043 | $ | 405,000 | $ | 421,479 | ||||
Delaware Valley, PA, Regional Finance Authority, “C”, FLR, 2.094% (LIBOR-3mo. + 0.75%), 6/01/2037 | 460,000 | 407,794 | ||||||
Georgia Municipal Association, Inc. (Riverdale Public Purpose Project), ASSD GTY, 5.5%, 5/01/2038 (Prerefunded 5/01/2019) | 1,000,000 | 1,040,950 | ||||||
Los Angeles County, CA, Public Works Financing Authority Lease Rev., “D”, 5%, 12/01/2032 | 395,000 | 456,004 | ||||||
New Jersey Building Authority Rev., Unrefunded Balance, “A”, BAM, 5%, 6/15/2029 | 10,000 | 11,320 | ||||||
$ | 2,337,547 | |||||||
Tax - Other - 2.3% | ||||||||
Atlanta & Fulton County, GA, Recreation Authority Park Improvement, “A”, 5%, 12/01/2032 | $ | 500,000 | $ | 570,970 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/2024 (Prerefunded 12/01/2019) | 75,000 | 79,570 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/2029 (Prerefunded 12/01/2019) | 25,000 | 26,625 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2033 | 100,000 | 105,414 |
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Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Tax - Other - continued | ||||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2034 | $ | 65,000 | $ | 68,326 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2035 | 65,000 | 68,134 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2036 | 35,000 | 36,610 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2046 | 100,000 | 103,647 | ||||||
Puerto Rico Convention Center District Authority, Hotel Occupancy Tax Rev., “A”, AMBAC, 5%, 7/01/2031 | 95,000 | 91,955 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2024 | 125,000 | 129,119 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2026 | 145,000 | 149,641 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2027 | 220,000 | 226,574 | ||||||
Virgin Islands Public Finance Authority Rev., Matching Fund Loan Note, “A”, AGM, 5%, 10/01/2025 | 135,000 | 141,442 | ||||||
$ | 1,798,027 | |||||||
Tax Assessment - 0.6% | ||||||||
Atlanta, GA, Georgia Tax Allocation (Eastside Project), 5%, 1/01/2030 | $ | 410,000 | $ | 464,153 | ||||
Tobacco - 0.3% | ||||||||
Illinois Railsplitter Tobacco Settlement Authority Rev., 6%, 6/01/2028 (Prerefunded 6/01/2021) | $ | 235,000 | $ | 264,342 | ||||
Toll Roads - 0.4% | ||||||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 6%, 1/01/2037 | $ | 95,000 | $ | 106,273 | ||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 5.5%, 1/01/2042 | 190,000 | 207,600 | ||||||
$ | 313,873 | |||||||
Transportation - Special Tax - 2.8% | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “A”, NATL, 4.75%, 7/01/2038 | $ | 65,000 | $ | 58,878 | ||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “CC”, AGM, 5.5%, 7/01/2028 | 275,000 | 299,469 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “CC”, AGM, 5.25%, 7/01/2032 | 15,000 | 15,944 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “CC”, AGM, 5.25%, 7/01/2033 | 30,000 | 31,912 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “D”, AGM, 5%, 7/01/2032 | 70,000 | 70,059 |
Issuer | Shares/Par | Value ($) | ||||||
Transportation - Special Tax - continued | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “E”, AGM, 5.5%, 7/01/2019 | $ | 155,000 | $ | 160,665 | ||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “E”, AGM, 5.5%, 7/01/2020 | 40,000 | 41,931 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “J”, NATL, 5%, 7/01/2029 | 10,000 | 9,657 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “L”, AMBAC, 5.25%, 7/01/2038 | 700,000 | 678,734 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “L”, NATL, 5.25%, 7/01/2035 | 170,000 | 161,656 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, AGM, 5.5%, 7/01/2029 | 120,000 | 130,710 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, ASSD GTY, 5.25%, 7/01/2034 | 30,000 | 31,926 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, ASSD GTY, 5.25%, 7/01/2036 | 135,000 | 143,848 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, NATL, 5.25%, 7/01/2032 | 150,000 | 145,066 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, NATL, 5.25%, 7/01/2033 | 135,000 | 129,944 | ||||||
New Jersey Transportation Trust Fund Authority, Federal Highway Reimbursement Rev., “A-1”, 5%, 6/15/2027 | 120,000 | 133,271 | ||||||
$ | 2,243,670 | |||||||
Universities - Colleges - 19.2% | ||||||||
Athens, GA, Housing Authority Rev. (University of Georgia East Campus Funding), 5.25%, 6/15/2035 (Prerefunded 6/17/2019) | $ | 500,000 | $ | 521,630 | ||||
Athens-Clarke County, GA, Unified Government Development Authority, Educational Facilities Rev., 5%, 6/15/2031 (Prerefunded 6/15/2018) | 250,000 | 251,750 | ||||||
Atkinson-Coffee County, GA, Joint Development Authority Rev. (SGC Real Estate Foundation II LLC), ASSD GTY, 5.25%, 6/01/2034 (Prerefunded 6/01/2019) | 500,000 | 520,545 | ||||||
Bleckley-Dodge County, GA, Student Housing Facilities Rev. (Middle Georgia College), 5.25%, 7/01/2038 | 500,000 | 503,920 | ||||||
Bulloch County, GA, Development Authority Rev. (Georgia Southern University Housing Foundation Four, LLC Project), 5%, 7/01/2038 | 1,000,000 | 1,126,810 | ||||||
Cobb County, GA, Development Authority, Dining Hall Lease Rev. (Kennesaw State University Dining Hall Real Estate Foundation, LLC Project), ASSD GTY, 5.75%, 7/15/2039 (Prerefunded 7/15/2018) | 1,000,000 | 1,011,850 |
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Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
Cobb County, GA, Development Authority, Parking & Dining Hall Refunding Lease Rev. (Kennesaw State University Real Estate Foundations Projects), 5%, 7/15/2034 | $ | 500,000 | $ | 570,040 | ||||
Cobb County, GA, Development Authority, Sports & Recreation Facilities Lease Rev. (Kennesaw State University Foundation), AGM, 5%, 7/15/2035 | 750,000 | 793,222 | ||||||
Dahlonega, GA, Downtown Development Authority Refunding Rev. (North Georgia MAC LLC), 5%, 7/01/2036 | 1,000,000 | 1,147,330 | ||||||
Dahlonega, GA, Downtown Development Authority Rev. (North Georgia PHD LLC), ASSD GTY, 5.25%, 7/01/2034 (Prerefunded 7/01/2019) | 500,000 | 521,625 | ||||||
DeKalb County/Newton County/Gwinnet County, GA, Joint Development Authority Rev. (GGC Foundation LLC), 6%, 7/01/2034 (Prerefunded 7/01/2019) | 500,000 | 526,540 | ||||||
Fulton County, GA, Development Authority Rev. (Georgia Tech Foundation Funding), SYNCORA, 5%, 6/01/2032 | 500,000 | 501,250 | ||||||
Fulton County, GA, Development Authority Rev. (Spelman College), 5%, 6/01/2028 | 500,000 | 574,410 | ||||||
Fulton County, GA, Development Authority Tech Facilities Rev., 5%, 3/01/2034 | 300,000 | 348,033 | ||||||
Georgia Higher Education Facilities Authority Rev., 6%, 6/15/2034 (Prerefunded 6/15/2018) | 50,000 | 50,444 | ||||||
Georgia Higher Education Facilities Authority Rev., 6%, 6/15/2034 (Prerefunded 6/15/2018) | 250,000 | 252,220 | ||||||
Gwinnett County, GA, Development Authority Rev. (Georgia Gwinnet County Student Housing), “A”, 5%, 7/01/2040 | 1,000,000 | 1,133,600 | ||||||
Marietta, GA, Development Facilities Authority Rev. (Life University, Inc. Project), 7%, 6/15/2030 (Prerefunded 6/15/2018) | 100,000 | 101,076 | ||||||
Marietta, GA, Development Facilities Authority Rev. (Life University, Inc. Project), 7%, 6/15/2039 (Prerefunded 6/15/2018) | 100,000 | 101,076 | ||||||
Marietta, GA, Development Facilities Authority Rev. (Life University, Inc. Project), “A”, 5%, 11/01/2047 | 250,000 | 261,810 | ||||||
Pennsylvania Higher Educational Facilities Authority Rev., AGM, 3%, 6/15/2045 | 310,000 | 272,369 | ||||||
Pinellas County, FL, Educational Facilities Authority Rev. (Barry University), 6%, 10/01/2041 | 65,000 | 70,346 | ||||||
Private Colleges & Universities, GA, Authority Rev. (Agnes Scott College), 5%, 6/01/2024 (Prerefunded 6/01/2019) | 190,000 | 197,152 | ||||||
Private Colleges & Universities, GA, Authority Rev. (Agnes Scott College), 5%, 6/01/2024 | 310,000 | 321,269 | ||||||
Private Colleges & Universities, GA, Authority Rev. (Emory University), “A”, 5%, 10/01/2046 | 1,000,000 | 1,144,960 |
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
Private Colleges & Universities, GA, Authority Rev. (Mercer University Project), 5%, 10/01/2040 | $ | 350,000 | $ | 369,208 | ||||
Private Colleges & Universities, GA, Authority Rev. (Mercer University), “C”, 5.25%, 10/01/2027 | 350,000 | 381,804 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Educational Facilities Rev. (University Plaza Project), NATL, 5%, 7/01/2033 | 80,000 | 74,974 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.125%, 4/01/2032 | 25,000 | 22,188 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.375%, 4/01/2042 | 45,000 | 38,700 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (International American University of Puerto Rico Project), 5%, 10/01/2031 | 55,000 | 55,051 | ||||||
Richmond County, GA, Development Authority Rev. (Georgia Regents University Academic Research Center Project), AGM, 5%, 12/15/2032 | 325,000 | 371,806 | ||||||
Savannah, GA, Economic Development Authority Rev. (SSU Community Development I LLC Project), ASSD GTY, 5.5%, 6/15/2035 | 500,000 | 537,240 | ||||||
South Regional, GA, Joint Development Authority Rev. (VSU Parking and Student Service Center Project), “A”, 5%, 8/01/2035 | 500,000 | 568,450 | ||||||
$ | 15,244,698 | |||||||
Universities - Dormitories - 0.8% | ||||||||
Cobb County, GA, Development Authority Student Housing Rev. (Kennesaw State University Real Estate Foundations), “C”, 5%, 7/15/2030 | $ | 400,000 | $ | 433,708 | ||||
Oklahoma Development Finance Authority, First Mortgage Rev. (Provident Education Resources, Inc.- Cross Village Student Housing Project), 5%, 8/01/2052 | 100,000 | 106,354 | ||||||
Oklahoma Development Finance Authority, First Mortgage Rev. (Provident Education Resources, Inc.- Cross Village Student Housing Project), 5.25%, 8/01/2057 | 115,000 | 123,589 | ||||||
$ | 663,651 | |||||||
Utilities - Investor Owned - 0.6% | ||||||||
Monroe County, GA, Development Authority Pollution Control Rev. (Georgia Power Co. Plant Scherer Project), 2.05%, 7/01/2049 (Put Date 11/19/2021) | $ | 500,000 | $ | 492,085 |
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Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Utilities - Municipal Owned - 6.6% | ||||||||
Dalton, GA, Combined Utilities Rev., 5%, 3/01/2029 | $ | 1,195,000 | $ | 1,404,125 | ||||
Dalton, GA, Utilities Rev., 4%, 3/01/2035 | 500,000 | 524,455 | ||||||
Dalton, GA, Utilities Rev., 4%, 3/01/2036 | 500,000 | 523,275 | ||||||
Georgia Municipal Electric Authority Power Rev., “A”, NATL, 6.5%, 1/01/2020 | 375,000 | 395,704 | ||||||
Georgia Municipal Gas Authority Rev. (Gas Portfolio III Project), “S”, 5%, 10/01/2025 | 500,000 | 555,750 | ||||||
Georgia Municipal Gas Authority Rev. (Gas Portfolio III Project), “S”, 5%, 10/01/2026 | 500,000 | 555,750 | ||||||
Guam Power Authority Rev., “A”, 5.5%, 10/01/2030 (Prerefunded 10/01/2020) | 160,000 | 174,213 | ||||||
Guam Power Authority Rev., “A”, 5.5%, 10/01/2040 (Prerefunded 10/01/2020) | 260,000 | 283,096 | ||||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/2039 | 50,000 | 54,198 | ||||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/2044 | 60,000 | 64,820 | ||||||
Long Island, NY, Power Authority, Electric Systems Rev., “A”, 6%, 5/01/2033 (Prerefunded 5/01/2019) | 100,000 | 104,637 | ||||||
Puerto Rico Electric Power Authority Rev., “RR”, ASSD GTY, 5%, 7/01/2028 | 490,000 | 490,774 | ||||||
Puerto Rico Electric Power Authority Rev., “VV”, NATL, 5.25%, 7/01/2030 | 70,000 | 68,632 | ||||||
Puerto Rico Electric Power Authority Rev., “VV”, NATL, 5.25%, 7/01/2032 | 5,000 | 4,836 | ||||||
$ | 5,204,265 | |||||||
Utilities - Other - 2.3% | ||||||||
Georgia Main Street Natural Gas, Inc., Gas Project Rev., “A”, 5%, 3/15/2022 | $ | 910,000 | $ | 1,000,809 | ||||
Georgia Main Street Natural Gas, Inc., Gas Project Rev., “B”, 5%, 3/15/2019 | 250,000 | 257,045 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2019 | 225,000 | 235,186 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2020 | 250,000 | 268,537 | ||||||
Texas Gas Acquisition & Supply Corp III., Gas Supply Rev., 5%, 12/15/2031 | 40,000 | 43,701 | ||||||
$ | 1,805,278 | |||||||
Water & Sewer Utility Revenue - 14.9% | ||||||||
Athens-Clarke County, GA, Unified Government Water & Sewer Rev, 5.625%, 1/01/2033 (Prerefunded 1/01/2019) | $ | 500,000 | $ | 515,010 | ||||
Atlanta, GA, Water & Wastewater Refunding Rev., “A”, 5%, 11/01/2037 | 1,000,000 | 1,169,940 | ||||||
Atlanta, GA, Water & Wastewater Rev., “A”, 5%, 11/01/2038 | 1,000,000 | 1,168,120 | ||||||
Cherokee County, GA, Water & Sewer Authority Rev., 5%, 8/01/2021 | 385,000 | 423,692 | ||||||
Cherokee County, GA, Water & Sewer Authority Rev., 5%, 8/01/2028 | 800,000 | 856,944 | ||||||
Columbus, GA, Water and Sewerage Rev., 5%, 5/01/2035 | 350,000 | 402,857 |
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - continued | ||||||||
Columbus, GA, Water and Sewerage Rev., 5%, 5/01/2036 | $ | 150,000 | $ | 172,304 | ||||
DeKalb County, GA, Water & Sewer Rev., “A”, 5.25%, 10/01/2031 | 1,000,000 | 1,108,090 | ||||||
DeKalb County, GA, Water & Sewer Rev., “B”, 5.25%, 10/01/2025 | 1,000,000 | 1,192,910 | ||||||
Forsyth County, GA, Water & Sewer Authority Rev., 5%, 1/01/2026 | 500,000 | 559,855 | ||||||
Fulton County, GA, Water & Sewer Rev., 5%, 1/01/2023 | 500,000 | 541,245 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 7/01/2036 | 30,000 | 32,200 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5.625%, 7/01/2040 (Prerefunded 7/01/2020) | 60,000 | 65,066 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 1/01/2046 | 125,000 | 132,843 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), “A”, 5%, 7/01/2029 | 45,000 | 48,905 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), “A”, 5%, 7/01/2035 | 45,000 | 47,656 | ||||||
Henry County, GA, Water & Sewer Authority Rev., BHAC, 5.25%, 2/01/2027 | 1,000,000 | 1,201,670 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Sewage Disposal System Rev. Refunding Second Lien Local Project), “C-7”, NATL, 5%, 7/01/2032 | 15,000 | 16,543 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Second Lien Local Project), “D-6”, NATL, 5%, 7/01/2036 | 20,000 | 21,868 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Senior Lien Local Project), “D-1”, AGM, 5%, 7/01/2035 | 10,000 | 11,101 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Senior Lien Local Project), “D-1”, AGM, 5%, 7/01/2037 | 20,000 | 22,165 | ||||||
Oconee County, GA, Water and Sewerage Rev., “A”, 5%, 9/01/2033 | 555,000 | 653,379 | ||||||
Paulding County, GA, Water & Sewerage Rev., Improvement & Refunding, 3%, 12/01/2048 | 1,000,000 | 856,260 | ||||||
Walton County, GA, Water & Sewer Authority Rev. (Walton-Hard Labor Creek Project), 5%, 2/01/2038 | 500,000 | 565,560 | ||||||
$ | 11,786,183 | |||||||
Total Municipal Bonds (Identified Cost, $77,324,181) | $ | 78,779,931 |
42
Table of Contents
Portfolio of Investments – continued
Investment Companies (h) - 0.8% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Money Market Funds - 0.8% | ||||||||
MFS Institutional Money Market Portfolio, 1.71% (v) (Identified Cost, $670,827) | 670,961 | $ | 670,895 | |||||
Other Assets, Less Liabilities - (0.2)% | (161,449) | |||||||
Net Assets - 100.0% | $ | 79,289,377 |
See Portfolio Footnotes and Notes to Financial Statements
43
Table of Contents
PORTFOLIO OF INVESTMENTS
3/31/18
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 - 97.8% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 0.9% | ||||||||
Metropolitan Washington, DC, Airport Authority Rev., “A”, 5%, 10/01/2039 | $ | 750,000 | $ | 800,513 | ||||
General Obligations - General Purpose - 13.5% | ||||||||
Baltimore County, MD, Metropolitan District (80th Issue), 5%, 3/01/2033 | $ | 1,250,000 | $ | 1,491,312 | ||||
Baltimore County, MD, Public Improvement, 5%, 2/01/2028 | 2,000,000 | 2,196,719 | ||||||
Baltimore, MD, Consolidated Public Improvement, “B”, 5%, 10/15/2022 | 500,000 | 562,615 | ||||||
Commonwealth of Puerto Rico, Public Improvement Refunding, “A-4”, AGM, 5%, 7/01/2031 | 65,000 | 67,178 | ||||||
Guam Government, “A”, 6.75%, 11/15/2029 (Prerefunded 11/15/2019) | 70,000 | 75,460 | ||||||
Guam Government, “A”, 7%, 11/15/2039 (Prerefunded 11/15/2019) | 80,000 | 86,557 | ||||||
Maryland State & Local Facilities Loan, Tax- Exempt Refunding, Second Series “B”, 5%, 8/01/2026 | 1,000,000 | 1,197,670 | ||||||
Montgomery County, MD, Consolidated Public Improvement, “A”, 5%, 11/01/2026 | 1,000,000 | 1,169,920 | ||||||
Prince George’s County, MD, Consolidated Public Improvement, “A”, 5%, 9/15/2030 | 1,500,000 | 1,658,265 | ||||||
Prince George’s County, MD, Consolidated Public Improvement, “A”, 4%, 7/01/2033 | 850,000 | 909,084 | ||||||
Puerto Rico Public Buildings Authority Rev., Guaranteed, “D”, AMBAC, 5.45%, 7/01/2030 | 115,000 | 115,003 | ||||||
State of California, 6%, 11/01/2039 | 720,000 | 767,988 | ||||||
State of Illinois, 5%, 11/01/2027 | 190,000 | 197,619 | ||||||
State of Illinois, “D”, 5%, 11/01/2028 | 195,000 | 202,357 | ||||||
Washington Suburban Sanitary District, MD, Consolidated Public Improvement, 5%, 6/01/2021 | 500,000 | 548,455 | ||||||
Wicomico County, MD, Public Improvement, 5%, 11/01/2025 | 580,000 | 683,466 | ||||||
$ | 11,929,668 | |||||||
General Obligations - Schools - 0.1% | ||||||||
Berks County, PA, Reading School District, AGM, 5%, 3/01/2035 | $ | 20,000 | $ | 22,524 | ||||
Berks County, PA, Reading School District, AGM, 5%, 3/01/2036 | 20,000 | 22,474 | ||||||
Berks County, PA, Reading School District, AGM, 5%, 3/01/2037 | 15,000 | 16,819 | ||||||
Berks County, PA, Reading School District, AGM, 5%, 3/01/2038 | 5,000 | 5,598 | ||||||
$ | 67,415 | |||||||
Healthcare Revenue - Hospitals - 21.6% | ||||||||
California Health Facilities Financing Authority Rev. (Stanford Health System), “A”, 4%, 11/15/2040 | $ | 280,000 | $ | 290,413 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Escambia County, FL, Health Facilities Authority (Baptist Hospital, Inc.), “A”, 6%, 8/15/2036 | $ | 590,000 | $ | 636,297 | ||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 7%, 8/15/2044 (Prerefunded 8/15/2019) | 345,000 | 369,198 | ||||||
Kentucky Economic Development Finance Authority Hospital Rev. (Owensboro Medical Health System, Inc.), “A”, 6.375%, 6/01/2040 (Prerefunded 6/01/2020) | 370,000 | 404,965 | ||||||
Kentucky Economic Development Finance Authority Hospital Rev. (Owensboro Medical Health System, Inc.), “A”, 6.5%, 3/01/2045 (Prerefunded 6/01/2020) | 575,000 | 630,212 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Anne Arundel Health System), 5%, 7/01/2040 | 1,000,000 | 1,040,190 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Anne Arundel Health System), “A”, 6.75%, 7/01/2039 (Prerefunded 7/01/2019) | 1,000,000 | 1,059,710 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Carroll Hospital), “A”, 5%, 7/01/2037 | 1,000,000 | 1,078,690 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Doctors Community Hospital), “A”, 5%, 7/01/2034 | 750,000 | 823,245 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Johns Hopkins Health System), “A”, 5%, 5/15/2026 | 250,000 | 272,865 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (LifeBridge Health), 5%, 7/01/2028 | 750,000 | 859,065 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (LifeBridge Health), 5%, 7/01/2033 | 400,000 | 454,588 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Medlantic/Helix Parent, Inc.), “A”, AGM, 5.25%, 8/15/2038 | 1,000,000 | 1,215,730 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (MedStar Health), “A”, 5%, 8/15/2041 | 505,000 | 553,652 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (MedStar Health), “A”, 5%, 5/15/2042 | 750,000 | 842,115 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Mercy Medical Center), “A”, 5%, 7/01/2032 | 600,000 | 668,946 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Meritus Medical Center), 5%, 7/01/2027 | 500,000 | 561,540 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Trinity Health Credit Group), “MD”, 5%, 12/01/2046 | 1,000,000 | 1,129,200 |
44
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Maryland Health & Higher Educational Facilities Authority Rev. (University of Maryland Medical System), “B”, 5%, 7/01/2034 | $ | 1,000,000 | $ | 1,133,600 | ||||
Maryland Health & Higher Educational Facilities Authority Rev. (University of Maryland Medical System), “D”, 4%, 7/01/2048 | 1,250,000 | 1,247,762 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Western Maryland Health System), 5.25%, 7/01/2034 | 1,000,000 | 1,094,990 | ||||||
Maryland Industrial Development Authority, Economic Development Rev., RIBS, AGM, 8.42%, 8/26/2022(p) | 650,000 | 759,837 | ||||||
Montgomery County, MD, Rev. (Trinity Health Corp.), 5%, 12/01/2040 | 1,000,000 | 1,096,100 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6%, 10/01/2027 (Prerefunded 10/01/2019) | 480,000 | 509,962 | ||||||
Richmond, IN, Hospital Authority Rev. (Reid Hospital), “A”, 6.5%, 1/01/2029 (Prerefunded 1/01/2019) | 415,000 | 429,500 | ||||||
$ | 19,162,372 | |||||||
Healthcare Revenue - Long Term Care - 3.7% | ||||||||
Gaithersburg, MD, Economic Development Rev. (Asbury Maryland Obligated Group), “A”, 5.125%, 1/01/2036 | $ | 400,000 | $ | 400,272 | ||||
Howard County, MD, Retirement Rev. (Vantage House Facility), 5%, 4/01/2036 | 500,000 | 518,700 | ||||||
Maryland Health & Higher Educational | ||||||||
Facilities Authority Rev. (Charlestown | ||||||||
Community Project), 6.25%, 1/01/2041 (Prerefunded 1/01/2021) | 750,000 | 836,175 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Charlestown Community Project), “A”, 5%, 1/01/2045 | 500,000 | 554,795 | ||||||
Rockville, MD, Mayor & Council Economic Development Rev. (Ingleside at King Farm Project), “B”, 5%, 11/01/2042 | 350,000 | 382,214 | ||||||
Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7%, 11/01/2030 (Prerefunded 11/01/2020) | 45,000 | 50,649 | ||||||
Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7.125%, 11/01/2040 (Prerefunded 11/01/2020) | 85,000 | 95,936 | ||||||
Travis County, TX, Health Facilities Development Corp. Rev., Unrefunded Balance, (Westminster Manor Health), 7%, 11/01/2030 | 10,000 | 10,789 | ||||||
Westminster, MD, Refunding Rev. (Carroll Lutheran Village, Inc.), 5.125%, 7/01/2040 | 400,000 | 425,532 | ||||||
$ | 3,275,062 | |||||||
Healthcare Revenue - Other - 0.7% | ||||||||
Maryland Economic Development Corp., Economic Development Rev. (Lutheran World Relief Refugee), 5.25%, 4/01/2019 | $ | 30,000 | $ | 30,085 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Other - continued | ||||||||
Maryland Economic Development Corp., Economic Development Rev. (Lutheran World Relief Refugee), 5.25%, 4/01/2029 | $ | 565,000 | $ | 566,458 | ||||
$ | 596,543 | |||||||
Industrial Revenue - Other - 0.6% | ||||||||
New York Liberty Development Corp. Rev. (Goldman Sachs Headquarters), 5.25%, 10/01/2035 | $ | 435,000 | $ | 539,809 | ||||
Industrial Revenue - Paper - 0.1% | ||||||||
Valparaiso, IN, Exempt Facilities Rev. (Pratt Paper LLC Project), 7%, 1/01/2044 | $ | 100,000 | $ | 118,063 | ||||
Miscellaneous Revenue - Entertainment & Tourism - 0.9% | ||||||||
Baltimore, MD, Convention Center Hotel Rev., 5%, 9/01/2046 | $ | 750,000 | $ | 827,498 | ||||
Miscellaneous Revenue - Other - 2.5% | ||||||||
Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/2040 | $ | 105,000 | $ | 112,637 | ||||
Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/2044 | 160,000 | 171,242 | ||||||
Maryland Economic Development Corp. Private Activity Rev. (Purple Line Light Rail Project), “D”, 5%, 3/31/2036 | 500,000 | 554,685 | ||||||
Montgomery County, MD, Transportation Fund Lease Authority Rev., “A”, 5%, 11/01/2036 | 750,000 | 854,797 | ||||||
New York, NY, Industrial Development Agency, Airport Facilities Rev. (Transportation Infrastructure Properties LLC), 5%, 7/01/2028 | 450,000 | 482,809 | ||||||
$ | 2,176,170 | |||||||
Multi-Family Housing Revenue - 2.7% | ||||||||
Howard County, MD, Housing Commission Rev. (Columbia Commons Apartments), “A”, 5%, 6/01/2044 | $ | 500,000 | $ | 536,350 | ||||
Howard County, MD, Housing Commission Rev. (Woodfield Oxford Square Apartments), 5%, 12/01/2037 | 750,000 | 846,105 | ||||||
Montgomery County, MD, Housing Opportunities Commission, Multifamily Rev., 5.125%, 7/01/2037 | 1,000,000 | 1,043,530 | ||||||
$ | 2,425,985 | |||||||
Parking - 1.6% | ||||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Johns Hopkins Medical Institutions), AMBAC, 5%, 7/01/2034 | $ | 1,385,000 | $ | 1,388,559 | ||||
Port Revenue - 1.5% | ||||||||
Maryland Economic Development Corp. Rev. (Transportation Facilities Project), “A”, 5%, 6/01/2031 | $ | 650,000 | $ | 741,071 | ||||
Maryland Economic Development Corp. Rev. (Transportation Facilities Project), “A”, 5.75%, 6/01/2035 (Prerefunded 6/01/2020) | 550,000 | 596,563 | ||||||
$ | 1,337,634 |
45
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Sales & Excise Tax Revenue - 2.0% | ||||||||
Chicago, IL, Transit Authority Sales Tax Receipts Rev., AGM, 5%, 12/01/2046 | $ | 625,000 | $ | 681,806 | ||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6%, 1/15/2041 | 435,000 | 467,560 | ||||||
Guam Government Business Privilege Tax Rev., “A”, 5.25%, 1/01/2036 | 260,000 | 270,704 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “A”, 5.5%, 8/01/2028 (Prerefunded 8/01/2019) | 5,000 | 5,248 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, AMBAC, 0%, 8/01/2054 | 275,000 | 35,415 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2040 | 135,000 | 35,139 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2041 | 110,000 | 27,079 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2042 | 285,000 | 66,228 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2043 | 105,000 | 23,061 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2044 | 70,000 | 14,575 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2045 | 45,000 | 8,885 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2046 | 970,000 | 181,642 | ||||||
$ | 1,817,342 | |||||||
Secondary Schools - 0.3% | ||||||||
La Vernia, TX, Higher Education Finance Corp. Rev. (Lifeschool of Dallas), ’’A“, 7.5%, 8/15/2041 (Prerefunded 8/15/2019) | $ | 265,000 | $ | 284,992 | ||||
Single Family Housing - State - 1.7% | ||||||||
Maryland Community Development Administration, Department of Housing & Community Development, 5%, 9/01/2034 | $ | 1,500,000 | $ | 1,525,080 | ||||
State & Agency - Other - 6.8% | ||||||||
Howard County, MD, COP, “A”, 8%, 8/15/2019 | $ | 805,000 | $ | 873,884 | ||||
Howard County, MD, COP, “B”, 8%, 8/15/2019 | 385,000 | 417,944 | ||||||
Howard County, MD, COP, “B”, 8.15%, 2/15/2021 | 450,000 | 527,954 | ||||||
Howard County, MD, COP, “C”, 8%, 8/15/2019 | 680,000 | 738,188 | ||||||
Maryland Stadium Authority Rev., Baltimore City Public Schools Construction and Revitalization Program, 5%, 5/01/2032 | 1,265,000 | 1,449,171 | ||||||
Maryland Stadium Authority Rev., Baltimore City Public Schools Construction and Revitalization Program, 5%, 5/01/2033 | 750,000 | 856,297 |
Issuer | Shares/Par | Value ($) | ||||||
State & Agency - Other - continued | ||||||||
Maryland Stadium Authority Rev., Baltimore City Public Schools Construction and Revitalization Program, 5%, 5/01/2041 | $ | 500,000 | $ | 562,850 | ||||
Maryland Stadium Authority Rev., Baltimore City Public Schools Construction and Revitalization Program, “A”, 5%, 5/01/2038 | 500,000 | 576,530 | ||||||
$ | 6,002,818 | |||||||
State & Local Agencies - 2.1% | ||||||||
Colorado State University Board of Governors, System Enterprise Refunding Rev., ”E“, 4%, 3/01/2043 | $ | 455,000 | $ | 473,514 | ||||
Delaware Valley, PA, Regional Finance Authority, “C”, FLR, 2.094% (LIBOR-3mo. + 0.75%), 6/01/2037 | 665,000 | 589,529 | ||||||
FYI Properties Lease Rev. (Washington State Project), 5.5%, 6/01/2034 | 370,000 | 385,695 | ||||||
New York Dormitory Authority Rev., State Personal Income Tax, “A”, (Group C), 5%, 2/15/2041 | 385,000 | 438,531 | ||||||
$ | 1,887,269 | |||||||
Tax - Other - 1.8% | ||||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/2024 (Prerefunded 12/01/2019) | $ | 325,000 | $ | 344,802 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/2029 (Prerefunded 12/01/2019) | 45,000 | 47,925 | ||||||
Puerto Rico Convention Center District Authority, Hotel Occupancy Tax Rev., “A”, AMBAC, 5%, 7/01/2031 | 110,000 | 106,475 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2027 | 635,000 | 653,974 | ||||||
Virgin Islands Public Finance Authority Rev., Matching Fund Loan Note, “A”, AGM, 5%, 10/01/2025 | 210,000 | 220,021 | ||||||
Virgin Islands Public Finance Authority Rev., Matching Fund Loan Note, “B”, AGM, 5%, 10/01/2025 | 200,000 | 206,716 | ||||||
$ | 1,579,913 | |||||||
Tax Assessment - 5.0% | ||||||||
Anne Arundel County, MD, Special Obligation (National Business Park-North Project), 6.1%, 7/01/2040 | $ | 350,000 | $ | 358,183 | ||||
Anne Arundel County, MD, Special Obligation (VLG South Waugh Chapel Project), 6.25%, 7/01/2040 | 300,000 | 307,129 | ||||||
Baltimore, MD, Special Obligation (East Baltimore Research Park Project), “A”, 5%, 9/01/2038 | 500,000 | 535,635 | ||||||
Baltimore, MD, Special Obligation (East Baltimore Research Park Project), “A”, 7%, 9/01/2038 (Prerefunded 9/01/2018) | 400,000 | 408,804 | ||||||
Brunswick, MD, Special Obligation (Brunswick Crossing Special Taxing), 5.5%, 7/01/2036 | 229,000 | 229,119 |
46
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Tax Assessment - continued | ||||||||
Frederick County, MD, Special Obligation (Urbana Community Development Authority), “A”, 5%, 7/01/2040 | $ | 1,500,000 | $ | 1,579,950 | ||||
Howard County, MD, Special Obligation (Annapolis Junction Town Center Project), 6.1%, 2/15/2044 | 230,000 | 236,357 | ||||||
Howard County, MD, Special Obligation (Downtown Columbia Project), “A”, 4.5%, 2/15/2047 | 300,000 | 304,155 | ||||||
Prince George’s County, MD, Special Obligation (National Harbor Project), 5.2%, 7/01/2034 | 467,000 | 468,579 | ||||||
$ | 4,427,911 | |||||||
Tobacco - 0.3% | ||||||||
Illinois Railsplitter Tobacco Settlement Authority Rev., 6%, 6/01/2028 (Prerefunded 6/01/2021) | $ | 215,000 | $ | 241,845 | ||||
Transportation - Special Tax - 5.9% | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”CC“, AGM, 5.25%, 7/01/2033 | $ | 1,365,000 | $ | 1,451,978 | ||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”E“, AGM, 5.5%, 7/01/2020 | 50,000 | 52,414 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”L“, AMBAC, 5.25%, 7/01/2038 | 870,000 | 843,569 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”L“, NATL, 5.25%, 7/01/2035 | 170,000 | 161,656 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”N“, AGM, 5.5%, 7/01/2029 | 150,000 | 163,388 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”N“, AMBAC, 5.5%, 7/01/2029 | 345,000 | 353,135 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”N“, NATL, 5.25%, 7/01/2032 | 190,000 | 183,751 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”N“, NATL, 5.25%, 7/01/2033 | 165,000 | 158,821 | ||||||
Washington Metropolitan Area Transit Authority Gross Rev., “A”, 5.125%, 7/01/2032 (Prerefunded 7/01/2019) | 485,000 | 505,845 | ||||||
Washington Metropolitan Area Transit Authority Gross Rev., “B”, 5%, 7/01/2042 | 1,140,000 | 1,312,892 | ||||||
$ | 5,187,449 | |||||||
Universities - Colleges - 7.9% | ||||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Goucher College), “A”, 5%, 7/01/2034 | $ | 500,000 | $ | 544,550 | ||||
Maryland Health & Higher Educational Facilities Authority Rev. (Goucher College), “A”, 5%, 7/01/2044 | 500,000 | 555,850 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Johns Hopkins University), “A”, 5%, 7/01/2037 | 1,500,000 | 1,666,680 |
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Loyola University Maryland), 5%, 10/01/2032 | $ | 500,000 | $ | 567,445 | ||||
Maryland Health & Higher Educational Facilities Authority Rev. (Maryland Institute College of Art Issue), 5%, 6/01/2033 | 450,000 | 503,348 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Notre Dame College), 5%, 10/01/2035 | 1,000,000 | 1,048,210 | ||||||
Morgan State University, Academic & Auxiliary Facilities Fees Rev., 5%, 7/01/2030 | 150,000 | 164,562 | ||||||
Morgan State University, Academic & Auxiliary Facilities Fees Rev., 5%, 7/01/2032 | 440,000 | 481,791 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.125%, 4/01/2032 | 30,000 | 26,625 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.375%, 4/01/2042 | 135,000 | 116,100 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (International American University of Puerto Rico Project), 5%, 10/01/2031 | 85,000 | 85,079 | ||||||
University System of Maryland, Auxiliary Facility & Tuition Rev., “D”, 5%, 10/01/2022 | 1,000,000 | 1,127,880 | ||||||
Virginia College Building Authority, Educational Facilities Rev. (Marymount University), “B”, 5.25%, 7/01/2035 | 110,000 | 118,567 | ||||||
$ | 7,006,687 | |||||||
Universities - Dormitories - 3.2% | ||||||||
Maryland Economic Development Corp., Senior Student Housing Rev. (University of Maryland, Baltimore Project), 5%, 7/01/2031 | $ | 500,000 | $ | 549,615 | ||||
Maryland Economic Development Corp., Senior Student Housing Rev. (University of Maryland, College Park Projects), AGM, 5%, 6/01/2035 | 750,000 | 850,290 | ||||||
Maryland Economic Development Corp., Student Housing Rev. (Salisbury University Project), 5%, 6/01/2027 | 500,000 | 539,030 | ||||||
Maryland Economic Development Corp., Student Housing Rev. (Salisbury University Project), 5%, 6/01/2030 | 300,000 | 318,105 | ||||||
Maryland Economic Development Corporation, Senior Student Housing Project and Refunding Rev. (Townson University Project), 5%, 7/01/2036 | 500,000 | 552,535 | ||||||
$ | 2,809,575 | |||||||
Utilities - Investor Owned - 0.8% | ||||||||
Maryland Economic Development Corp. Adjustable Mode Rev. Refunding (Constellation Energy Group, Inc. Project), “B”, 2.55%, 12/01/2025 (Put Date 6/01/2020) | $ | 750,000 | $ | 751,560 |
47
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Utilities - Municipal Owned - 0.9% | ||||||||
Long Island, NY, Power Authority, Electric | ||||||||
Systems Rev., “A”, 6%, 5/01/2033 (Prerefunded 5/01/2019) | $ | 185,000 | $ | 193,578 | ||||
Puerto Rico Electric Power Authority Rev., ”V“, AGM, 5.25%, 7/01/2027 | 560,000 | 598,864 | ||||||
$ | 792,442 | |||||||
Utilities - Other - 1.6% | ||||||||
Central Plains Energy Project, NE, Gas Project Rev. (Project No.3), “A”, 5%, 9/01/2036 | $ | 55,000 | $ | 65,052 | ||||
Central Plains Energy Project, NE, Gas Project Rev. (Project No.3), “A”, 5%, 9/01/2042 | 110,000 | 132,255 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2019 | 400,000 | 418,108 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2021 | 195,000 | 214,237 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2022 | 100,000 | 111,372 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2023 | 140,000 | 158,084 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “C”, 5%, 2/01/2021 | 235,000 | 253,072 | ||||||
Texas Gas Acquisition & Supply Corp III., Gas Supply Rev., 5%, 12/15/2031 | 55,000 | 60,089 | ||||||
$ | 1,412,269 | |||||||
Water & Sewer Utility Revenue - 7.1% | ||||||||
Baltimore, MD, Refunding Rev. (Mayor and City Council of Baltimore Water Projects), “B”, 5%, 7/01/2042 | $ | 1,320,000 | $ | 1,467,866 | ||||
Baltimore, MD, Rev., LEVRRS, NATL, 8.581%, 7/01/2020(p) | 1,650,000 | 1,784,738 | ||||||
Baltimore, MD, Wastewater Rev. Project, “A”, NATL, 5.65%, 7/01/2020 | 600,000 | 624,498 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 7/01/2036 | 20,000 | 21,467 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 1/01/2046 | 105,000 | 111,588 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), “A”, 5%, 7/01/2029 | 205,000 | 222,790 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), “A”, 5%, 7/01/2035 | 205,000 | 217,099 |
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - continued | ||||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Sewage Disposal System Rev. Refunding Second Lien Local Project), ”C-7“, NATL, 5%, 7/01/2032 | $ | 25,000 | $ | 27,572 | ||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Second Lien Local Project), ”D-6“, NATL, 5%, 7/01/2036 | 30,000 | 32,802 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Senior Lien Local Project), ”D-1“, AGM, 5%, 7/01/2035 | 15,000 | 16,651 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Senior Lien Local Project), ”D-1“, AGM, 5%, 7/01/2037 | 35,000 | 38,789 | ||||||
Mississippi Development Bank Special Obligation (City of Jackson Water and Sewer System Rev. Bond Project), AGM, 6.875%, 12/01/2040 | 50,000 | 60,742 | ||||||
Montgomery County, MD, Water Quality Protection Charge Rev., “A”, 5%, 4/01/2032 | 1,125,000 | 1,191,803 | ||||||
Paulding County, GA, Water & Sewerage Rev., Improvement & Refunding, 3%, 12/01/2048 | 550,000 | 470,943 | ||||||
$ | 6,289,348 | |||||||
Total Municipal Bonds (Identified Cost, $84,879,603) | $ | 86,661,791 | ||||||
Investment Companies (h) - 2.6% | ||||||||
Money Market Funds - 2.6% | ||||||||
MFS Institutional Money Market Portfolio, 1.71% (v) (Identified Cost, $2,279,783) | 2,280,061 | $ | 2,279,833 | |||||
Other Assets, Less Liabilities - (0.4)% | (396,498) | |||||||
Net Assets - 100.0% | $ | 88,545,126 |
See Portfolio Footnotes and Notes to Financial Statements
48
Table of Contents
PORTFOLIO OF INVESTMENTS
3/31/18
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 - 98.6% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 2.0% | ||||||||
Massachusetts Port Authority Rev., “A”, 5%, 7/01/2042 | $ | 3,000,000 | $ | 3,382,950 | ||||
Massachusetts Port Authority Rev., “A”, 5%, 7/01/2047 | 1,500,000 | 1,685,145 | ||||||
$ | 5,068,095 | |||||||
General Obligations - General Purpose - 9.7% | ||||||||
Commonwealth of Massachusetts, “B”, 5.25%, 8/01/2023 | $ | 1,000,000 | $ | 1,156,330 | ||||
Commonwealth of Massachusetts, “B”, 5.25%, 8/01/2028 | 2,225,000 | 2,751,413 | ||||||
Commonwealth of Massachusetts, General Obligation Consolidated Loan, ”D“, 5%, 2/01/2033 | 3,000,000 | 3,502,710 | ||||||
Commonwealth of Massachusetts, General Obligation Consolidated Loan, ”D“, 4%, 2/01/2044 | 2,000,000 | 2,070,680 | ||||||
Commonwealth of Massachusetts, General Obligation Consolidated Loan, ”D“, 4%, 2/01/2046 | 2,600,000 | 2,687,906 | ||||||
Commonwealth of Massachusetts, General Obligation Consolidated Loan, ”F“, 5%, 11/01/2042 | 3,000,000 | 3,474,540 | ||||||
Commonwealth of Massachusetts, General Obligation Consolidated Loan, ”G“, 3%, 9/01/2046 | 1,965,000 | 1,724,995 | ||||||
Commonwealth of Massachusetts, General Obligation Consolidated Loan, ”I“, 5%, 12/01/2034 | 1,000,000 | 1,163,110 | ||||||
Commonwealth of Puerto Rico, “A”, NATL, 5.5%, 7/01/2020 | 640,000 | 649,389 | ||||||
Commonwealth of Puerto Rico, Public Improvement, “A”, AGM, 5%, 7/01/2035 | 600,000 | 617,274 | ||||||
Guam Government, “A”, 6.75%, 11/15/2029 (Prerefunded 11/15/2019) | 685,000 | 738,430 | ||||||
Guam Government, “A”, 7%, 11/15/2039 (Prerefunded 11/15/2019) | 75,000 | 81,147 | ||||||
Puerto Rico Public Buildings Authority Rev., ”H“, AMBAC, 5.5%, 7/01/2018 | 825,000 | 828,597 | ||||||
Puerto Rico Public Buildings Authority Rev., ”M-2“, AMBAC, 10%, 7/01/2035 | 510,000 | 533,710 | ||||||
State of California, 6%, 11/01/2039 | 1,555,000 | 1,658,641 | ||||||
Stoughton, MA, General Obligation Municipal Purpose Loan, 3%, 10/15/2033 | 1,395,000 | 1,352,717 | ||||||
$ | 24,991,589 | |||||||
General Obligations - Schools - 0.9% | ||||||||
Montebello, CA, Unified School District (Election of 2016), “A”, 4%, 8/01/2046 | $ | 1,045,000 | $ | 1,074,803 | ||||
San Marcos,CA, Unified School District (Election of 2010), Capital Appreciation, “C”, 0%, 8/01/2038 | 3,375,000 | 1,276,324 | ||||||
$ | 2,351,127 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - 16.6% | ||||||||
California Health Facilities Financing Authority Rev. (Stanford Health System), “A”, 4%, 11/15/2040 | $ | 790,000 | $ | 819,380 | ||||
Escambia County, FL, Health Facilities Authority (Baptist Hospital, Inc.), “A”, 6%, 8/15/2036 | 1,315,000 | 1,418,188 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.25%, 7/01/2031 | 235,000 | 241,904 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.375%, 7/01/2041 | 345,000 | 353,001 | ||||||
Kentucky Economic Development Finance Authority Hospital Rev. (Owensboro Medical Health System, Inc.), “A”, 6.375%, 6/01/2040 (Prerefunded 6/01/2020) | 745,000 | 815,402 | ||||||
Kentucky Economic Development Finance Authority Hospital Rev. (Owensboro Medical Health System, Inc.), “A”, 6.5%, 3/01/2045 (Prerefunded 6/01/2020) | 520,000 | 569,930 | ||||||
Massachusetts Development Finance Agency Rev. (Baystate Medical Center), ”N“, 5%, 7/01/2044 | 2,000,000 | 2,176,220 | ||||||
Massachusetts Development Finance Agency Rev. (Caregroup), ”I“, 5%, 7/01/2037 | 1,000,000 | 1,105,060 | ||||||
Massachusetts Development Finance Agency Rev. (Children’s Hospital), ”P“, 5%, 10/01/2032 | 1,000,000 | 1,137,440 | ||||||
Massachusetts Development Finance Agency Rev. (Dana-Farber Cancer Institute), ”N“, 5%, 12/01/2036 | 1,690,000 | 1,925,316 | ||||||
Massachusetts Development Finance Agency Rev. (Lahey Health System Obligated Group), ”F“, 5%, 8/15/2030 | 2,000,000 | 2,279,560 | ||||||
Massachusetts Development Finance Agency Rev. (Lawrence General Hospital), 5%, 7/01/2037 | 1,000,000 | 1,069,400 | ||||||
Massachusetts Development Finance Agency Rev. (Milford Regional Medical Center), ”F“, 5.75%, 7/15/2043 | 1,000,000 | 1,085,010 | ||||||
Massachusetts Development Finance Agency Rev. (Partners Healthcare System Issue), ”S“, 4%, 7/01/2041 | 2,500,000 | 2,564,900 | ||||||
Massachusetts Development Finance Agency Rev. (Partners Healthcare System), ”Q“, 5%, 7/01/2041 | 1,500,000 | 1,682,670 | ||||||
Massachusetts Development Finance Agency Rev. (Partners Healthcare System), ”Q“, 5%, 7/01/2047 | 1,500,000 | 1,667,790 | ||||||
Massachusetts Development Finance Agency Rev. (South Shore Hospital), ”I“, 5%, 7/01/2041 | 2,300,000 | 2,519,213 |
49
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Massachusetts Development Finance Agency Rev. (Tufts Medical Center), “I”, 7.25%, 1/01/2032 (Prerefunded 1/01/2021) | $ | 600,000 | $ | 683,166 | ||||
Massachusetts Development Finance Agency Rev. (Tufts Medical Center), “I”, 7.25%, 1/01/2032 | 400,000 | 453,720 | ||||||
Massachusetts Development Finance Agency Rev. (Umass Health Care Obligated Group), ”L“, 5%, 7/01/2044 | 1,000,000 | 1,099,300 | ||||||
Massachusetts Development Finance Agency Rev. (UMass Memorial Health Care Obligated Group), “I”, 5%, 7/01/2041 | 1,850,000 | 2,020,829 | ||||||
Massachusetts Development Finance Agency Rev. (UMass Memorial Health Care Obligated Group), ”K“, 5%, 7/01/2038 | 2,000,000 | 2,195,760 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Bay State Medical Center), “I”, 5.75%, 7/01/2036 | 500,000 | 524,370 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Caregroup, Inc.), “E-1”, 5.125%, 7/01/2038 (Prerefunded 7/01/2018) | 1,000,000 | 1,008,710 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Children’s Hospital), ”M“, 5.25%, 12/01/2039 | 1,500,000 | 1,586,310 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Children’s Hospital), ”M“, 5.5%, 12/01/2039 | 1,000,000 | 1,061,610 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Dana Faber Cancer Institute), ”K“, 5%, 12/01/2037 | 2,000,000 | 2,046,780 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Partners Healthcare System), ”J1“, 5%, 7/01/2034 | 1,375,000 | 1,431,994 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Partners Healthcare System), ”J1“, 5%, 7/01/2039 | 2,000,000 | 2,082,900 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Southcoast Health Obligation), ”D“, 5%, 7/01/2029 | 1,000,000 | 1,036,540 | ||||||
Miami-Dade County, FL, Health Facilities Authority Hospital Rev., 6%, 8/01/2030 (Prerefunded 8/01/2020) | 310,000 | 338,725 | ||||||
Miami-Dade County, FL, Health Facilities Authority Hospital Rev., Unfunded Balance, 6%, 8/01/2030 | 120,000 | 129,407 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6.125%, 10/01/2039 (Prerefunded 10/01/2019) | 655,000 | 697,090 | ||||||
New Hampshire Business Finance Authority Rev. (Huggins Hospital), 6.875%, 10/01/2039 (Prerefunded 10/01/2019) | 30,000 | 32,115 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 6.75%, 7/01/2029 (Prerefunded 7/01/2019) | 165,000 | 174,747 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 7%, 7/01/2039 (Prerefunded 7/01/2019) | $ | 395,000 | $ | 419,541 | ||||
$ | 42,453,998 | |||||||
Healthcare Revenue - Long Term Care - 2.4% | ||||||||
Massachusetts Development Finance Agency First Mortgage Rev. (Berkshire Retirement Community), 5%, 7/01/2031 | $ | 1,000,000 | $ | 1,127,230 | ||||
Massachusetts Development Finance Agency Refunding Rev., Newbridge on The Charles, Inc., 5%, 10/01/2037 | 1,250,000 | 1,342,825 | ||||||
Massachusetts Development Finance Agency Rev. (Adventcare), “A”, 6.75%, 10/15/2037 | 500,000 | 500,665 | ||||||
Massachusetts Development Finance Agency Rev. (Carleton-Willard Village), 5.625%, 12/01/2030 | 525,000 | 552,127 | ||||||
Massachusetts Development Finance Agency Rev. (Linden Ponds, Inc.), “A”, 4.68%, 11/15/2021 | 200,000 | 201,280 | ||||||
Massachusetts Development Finance Agency Rev. (Linden Ponds, Inc.), “A-1”, 6.25%, 11/15/2039 | 352,582 | 366,347 | ||||||
Massachusetts Development Finance Agency Rev. (Linden Ponds, Inc.), “A-2”, 5.5%, 11/15/2046 | 17,049 | 17,053 | ||||||
Massachusetts Development Finance Agency Rev. (Linden Ponds, Inc.), Capital Appreciation, “B”, 0%, 11/15/2056 | 93,608 | 5,983 | ||||||
Massachusetts Development Finance Agency Rev. (Loomis Communities), “A”, 6%, 1/01/2033 | 500,000 | 567,980 | ||||||
Massachusetts Development Finance Agency Rev. (North Hill Communities), “A”, 6.5%, 11/15/2043 (Prerefunded 11/15/2023) | 1,000,000 | 1,221,850 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), “A”, 7.25%, 9/15/2029 (Prerefunded 9/15/2019) | 20,000 | 21,556 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), “A”, 7.625%, 9/15/2039 (Prerefunded 9/15/2019) | 130,000 | 140,808 | ||||||
$ | 6,065,704 | |||||||
Industrial Revenue - Environmental Services - 0.6% | ||||||||
Massachusetts Development Finance Agency, Resource Recovery Rev. (Covanta Energy Project), “C”, 5.25%, 11/01/2042 | $ | 1,535,000 | $ | 1,535,921 | ||||
Miscellaneous Revenue - Other – 6.8% | ||||||||
Martha’s Vineyard, MA, Land Bank Rev., BAM, 5%, 5/01/2031 | $ | 400,000 | $ | 456,392 | ||||
Massachusetts Development Finance Agency Rev., 5.5%, 9/01/2020 (Prerefunded 9/01/2018) | 1,205,000 | 1,223,906 | ||||||
Massachusetts Development Finance Agency Rev. (Broad Institute), “A”, 5.25%, 4/01/2037 | 2,000,000 | 2,196,580 |
50
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Miscellaneous Revenue - Other - continued | ||||||||
Massachusetts Health & Educational Facilities Authority Rev., 5.5%, 6/01/2034 | $ | 1,500,000 | $ | 1,509,600 | ||||
Massachusetts Health & Educational Facilities Authority Rev. (The Sterling & Francine Clark Art Institute), “B”, 5%, 7/01/2030 (Prerefunded 7/01/2020) | 3,500,000 | 3,753,190 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (The Sterling & Francine Clark Art Institute), “B”, 5%, 7/01/2040 (Prerefunded 7/01/2020) | 1,700,000 | 1,822,978 | ||||||
Massachusetts Port Authority Facilities Rev. (Boston Fuel Project), FGIC, 5%, 7/01/2024 | 2,000,000 | 2,004,700 | ||||||
Massachusetts Port Authority Special Facilities Rev. (ConRAC Project), “A”, 5.125%, 7/01/2041 | 3,000,000 | 3,235,080 | ||||||
New York Liberty Development Corp., Liberty Rev. (7 World Trade Center Project), 5%, 9/15/2040 | 1,095,000 | 1,204,708 | ||||||
$ | 17,407,134 | |||||||
Multi-Family Housing Revenue - 3.7% | ||||||||
Massachusetts Development Finance Agency Rev. (Credit Housing-Chelsea Homes), ”I-A“, LOC, 5%, 12/15/2024 | $ | 1,080,000 | $ | 1,081,307 | ||||
Massachusetts Development Finance Agency Rev. (Morville House Apartments), “A”, LOC, 4.95%, 12/15/2023 | 2,265,000 | 2,274,762 | ||||||
Massachusetts Housing Finance Agency Rev., “A”, FHA, 5.25%, 12/01/2035 | 1,000,000 | 1,060,730 | ||||||
Massachusetts Housing Finance Agency Rev., “C”, 5.35%, 12/01/2049 | 1,680,000 | 1,709,400 | ||||||
Massachusetts Housing Finance Agency, “B”, 5.25%, 12/01/2030 | 550,000 | 552,926 | ||||||
Massachusetts Housing Finance Agency, Multi-Family Housing, “A”, FHA, 4.75%, 12/01/2030 | 1,425,000 | 1,508,904 | ||||||
Massachusetts Housing Finance Agency, Multi-Family Housing, “A”, FHA, 4.875%, 12/01/2032 | 1,190,000 | 1,260,829 | ||||||
$ | 9,448,858 | |||||||
Parking - 1.3% | ||||||||
Boston, MA, Metropolitan Transit Parking Corp., Systemwide Parking Rev., 5.25%, 7/01/2036 | $ | 3,000,000 | $ | 3,277,020 | ||||
Sales & Excise Tax Revenue - 5.5% | ||||||||
Chicago, IL, Transit Authority Sales Tax Receipts Rev., AGM, 5%, 12/01/2046 | $ | 1,655,000 | $ | 1,805,423 | ||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6%, 1/15/2041 | 985,000 | 1,058,727 | ||||||
Massachusetts Bay Transportation Authority, Sales Tax Rev., “A”, 5%, 7/01/2024 | 1,590,000 | 1,847,373 | ||||||
Massachusetts Bay Transportation Authority, Sales Tax Rev., “A”, 5%, 7/01/2034 | 3,275,000 | 3,823,268 |
Issuer | Shares/Par | Value ($) | ||||||
Sales & Excise Tax Revenue - continued | ||||||||
Massachusetts Bay Transportation Authority, Sales Tax Rev., “A-1”, 5.25%, 7/01/2029 | $ | 1,850,000 | $ | 2,294,647 | ||||
Massachusetts Bay Transportation Authority, Sales Tax Rev., “A-1”, 5.25%, 7/01/2031 | 2,000,000 | 2,508,720 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “A”, 5.5%, 8/01/2028 (Prerefunded 8/01/2019) | 10,000 | 10,497 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, AMBAC, 0%, 8/01/2054 | 755,000 | 97,229 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2042 | 480,000 | 111,542 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2045 | 130,000 | 25,666 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2046 | 2,630,000 | 492,494 | ||||||
$ | 14,075,586 | |||||||
Secondary Schools - 3.0% | ||||||||
La Vernia, TX, Higher Education Finance Corp. Rev. (Lifeschool of Dallas), “A”, 7.5%, 8/15/2041 (Prerefunded 8/15/2019) | $ | 665,000 | $ | 715,168 | ||||
Massachusetts Development Finance Agency Rev. (Dexter Southfield), 5%, 5/01/2030 | 500,000 | 556,920 | ||||||
Massachusetts Development Finance Agency Rev. (Dexter Southfield), 5%, 5/01/2031 | 1,015,000 | 1,128,507 | ||||||
Massachusetts Development Finance Agency Rev. (Dexter Southfield), 5%, 5/01/2037 | 170,000 | 170,286 | ||||||
Massachusetts Development Finance Agency Rev. (Foxborough Regional Charter School), “A”, 6.375%, 7/01/2030 (Prerefunded 7/01/2020) | 830,000 | 905,156 | ||||||
Massachusetts Development Finance Agency Rev. (Foxborough Regional Charter School), “B”, 5%, 7/01/2037 | 1,000,000 | 1,070,990 | ||||||
Massachusetts Development Finance Agency Rev. (Milton Academy), “A”, 5%, 9/01/2028 | 1,000,000 | 1,072,950 | ||||||
Massachusetts Development Finance Agency Rev. (Sabis International Charter School Issue), 5%, 4/15/2033 | 2,000,000 | 2,145,600 | ||||||
$ | 7,765,577 | |||||||
State & Local Agencies - 6.0% | ||||||||
Colorado State University Board of | ||||||||
Governors, System Enterprise Refunding Rev., “E”, 4%, 3/01/2043 | $ | 1,245,000 | $ | 1,295,659 | ||||
Commonwealth Financing Authority, PA, Tobacco Master Settlement Payment Rev., 5%, 6/01/2032 | 75,000 | 84,206 | ||||||
Commonwealth Financing Authority, PA, Tobacco Master Settlement Payment Rev., 5%, 6/01/2033 | 60,000 | 67,039 |
51
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
State & Local Agencies - continued | ||||||||
Commonwealth Financing Authority, PA, Tobacco Master Settlement Payment Rev., 5%, 6/01/2034 | $ | 30,000 | $ | 33,357 | ||||
Delaware Valley, PA, Regional Finance Authority, “C”, FLR, 2.094% (LIBOR-3mo. + 0.75%), 6/01/2037 | 1,400,000 | 1,241,114 | ||||||
Massachusetts College Building Authority Project Rev., Capital Appreciation, “A”, SYNCORA, 0%, 5/01/2022 | 8,310,000 | 7,576,227 | ||||||
Massachusetts College Building Authority Rev., “A”, 5%, 5/01/2031 | 275,000 | 307,728 | ||||||
Massachusetts College Building Authority Rev., “A”, 5.5%, 5/01/2049 (Prerefunded 5/01/2019) | 1,680,000 | 1,749,703 | ||||||
Massachusetts State College, Building Authority Project Rev., “A”, 5%, 5/01/2029 | 2,000,000 | 2,206,540 | ||||||
Massachusetts State College, Building | ||||||||
Authority Project Rev., “A”, 5%, 5/01/2032 | 760,000 | 849,680 | ||||||
New Jersey Building Authority Rev., Unrefunded Balance, “A”, BAM, 5%, 6/15/2029 | 45,000 | 50,938 | ||||||
$ | 15,462,191 | |||||||
Student Loan Revenue - 3.7% | ||||||||
Massachusetts Educational Financing Authority, “J”, 5.625%, 7/01/2029 | $ | 920,000 | $ | 983,498 | ||||
Massachusetts Educational Financing Authority, Education Loan Rev, “A”, 4.25%, 1/01/2031 | 950,000 | 978,604 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “H”, ASSD GTY, 6.35%, 1/01/2030 | 715,000 | 720,305 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “I”, 6%, 1/01/2028 | 580,000 | 605,004 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “I-A”, 5.5%, 1/01/2022 | 3,000,000 | 3,151,500 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “I-A”, 5.15%, 1/01/2026 | 765,000 | 788,111 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “I-A”, 5.2%, 1/01/2027 | 360,000 | 370,037 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “J”, 3.5%, 7/01/2033 | 940,000 | 913,934 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “K”, 4.5%, 7/01/2024 | 1,025,000 | 1,066,697 | ||||||
$ | 9,577,690 | |||||||
Tax - Other - 2.1% | ||||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/2024 (Prerefunded 12/01/2019) | $ | 260,000 | $ | 275,842 |
Issuer | Shares/Par | Value ($) | ||||||
Tax - Other - continued | ||||||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/2029 (Prerefunded 12/01/2019) | $ | 85,000 | $ | 90,526 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2033 | 365,000 | 384,761 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2034 | 230,000 | 241,769 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2035 | 225,000 | 235,847 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2036 | 120,000 | 125,519 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2046 | 370,000 | 383,494 | ||||||
Massachusetts Special Obligation Dedicated Tax Rev., NATL, 5.5%, 1/01/2023 | 1,585,000 | 1,813,985 | ||||||
Puerto Rico Convention Center District Authority, Hotel Occupancy Tax Rev., “A”, AMBAC, 5%, 7/01/2031 | 295,000 | 285,545 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2026 | 765,000 | 789,488 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2027 | 815,000 | 839,352 | ||||||
$ | 5,466,128 | |||||||
Tobacco - 0.6% | ||||||||
Illinois Railsplitter Tobacco Settlement Authority Rev., 6%, 6/01/2028 (Prerefunded 6/01/2021) | $ | 1,335,000 | $ | 1,501,688 | ||||
Toll Roads - 1.1% | ||||||||
Massachusetts Department of Transportation, Metropolitan Highway System Rev., “B”, 5%, 1/01/2032 | $ | 2,600,000 | $ | 2,728,414 | ||||
Transportation - Special Tax - 5.5% | ||||||||
Commonwealth of Massachusetts Transportation Fund Rev. (Rail Enhancement & Accelerated Bridge Programs), “A”, 5%, 6/01/2036 | $ | 2,850,000 | $ | 3,291,009 | ||||
Commonwealth of Massachusetts Transportation Fund Rev. (Rail Enhancement & Accelerated Bridge Programs), “A”, 5%, 6/01/2042 | 3,000,000 | 3,461,790 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “A”, NATL, 4.75%, 7/01/2038 | 240,000 | 217,394 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “AA-1”, AGM, 4.95%, 7/01/2026 | 275,000 | 281,369 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “CC”, AGM, 5.25%, 7/01/2036 | 560,000 | 596,736 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “D”, AGM, 5%, 7/01/2032 | 280,000 | 280,235 |
52
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Transportation - Special Tax - continued | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “L”, AMBAC, 5.25%, 7/01/2038 | $ | 2,415,000 | $ | 2,341,632 | ||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “L”, ASSD GTY, 5.25%, 7/01/2041 | 1,720,000 | 1,841,174 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “L”, NATL, 5.25%, 7/01/2035 | 465,000 | 442,178 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, AMBAC, 5.5%, 7/01/2029 | 495,000 | 506,672 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, NATL, 5.25%, 7/01/2033 | 300,000 | 288,765 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Unrefunded Rev., “A”, NATL, 5%, 7/01/2038 | 45,000 | 40,994 | ||||||
New Jersey Transportation Trust Fund Authority, Federal Highway Reimbursement Rev., “A-1”, 5%, 6/15/2027 | 420,000 | 466,448 | ||||||
$ | 14,056,396 | |||||||
Universities - Colleges - 20.0% | ||||||||
Illinois Finance Authority Rev. (Roosevelt University Project), 6.25%, 4/01/2029 | $ | 2,005,000 | $ | 2,098,633 | ||||
Massachusetts Development Finance Agency Rev. (Bentley University), 5%, 7/01/2040 | 1,500,000 | 1,694,235 | ||||||
Massachusetts Development Finance Agency Rev. (Boston University), “V-1”, 5%, 10/01/2029 (Prerefunded 10/01/2019) | 2,165,000 | 2,271,626 | ||||||
Massachusetts Development Finance Agency Rev. (Emerson College), 5%, 1/01/2043 | 500,000 | 553,505 | ||||||
Massachusetts Development Finance Agency Rev. (Emerson College), 5%, 1/01/2048 | 250,000 | 275,678 | ||||||
Massachusetts Development Finance Agency Rev. (Emerson College), “A”, 5.25%, 1/01/2042 | 2,000,000 | 2,234,440 | ||||||
Massachusetts Development Finance Agency Rev. (Emmanuel College), “A”, 5%, 10/01/2043 | 2,000,000 | 2,177,380 | ||||||
Massachusetts Development Finance Agency Rev. (Holy Cross), “A”, 5%, 9/01/2041 | 2,040,000 | 2,324,988 | ||||||
Massachusetts Development Finance Agency Rev. (Merrimack College), 5%, 7/01/2047 | 3,000,000 | 3,239,370 | ||||||
Massachusetts Development Finance Agency Rev. (Simmons College), SYNCORA, 5.25%, 10/01/2026 | 2,250,000 | 2,617,965 | ||||||
Massachusetts Development Finance Agency Rev. (Suffolk University), 5%, 7/01/2035 | 150,000 | 167,006 | ||||||
Massachusetts Development Finance Agency Rev. (Suffolk University), 5%, 7/01/2036 | 850,000 | 942,828 | ||||||
Massachusetts Development Finance Agency Rev. (Suffolk University), 4%, 7/01/2039 | 2,875,000 | 2,905,906 | ||||||
Massachusetts Development Finance Agency Rev. (Suffolk University), 5.125%, 7/01/2040 | 1,000,000 | 1,045,080 |
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
Massachusetts Development Finance Agency Rev. (Wentworth Institute of Technology Issue), 5%, 10/01/2046 | $ | 2,000,000 | $ | 2,191,080 | ||||
Massachusetts Development Finance Agency Rev. (Western New England University), 5%, 9/01/2031 | 1,110,000 | 1,222,299 | ||||||
Massachusetts Development Finance Agency Rev. (Worcester Polytechnic Institute), 5%, 9/01/2047 | 1,395,000 | 1,581,846 | ||||||
Massachusetts Development Finance Agency Rev., Wheaton College Issue, “H”, 5%, 1/01/2042 | 2,000,000 | 2,283,040 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Berklee College), 5%, 10/01/2027 | 65,000 | 65,161 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Berklee College), 5%, 10/01/2037 | 140,000 | 140,354 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Boston College), 5.5%, 6/01/2027 | 1,735,000 | 2,160,370 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Harvard University), 5.5%, 11/15/2036 (Prerefunded 11/15/2018) | 1,135,000 | 1,162,603 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Lesley University), “A”, ASSD GTY, 5.25%, 7/01/2039 (Prerefunded 7/01/2019) | 1,000,000 | 1,043,880 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Massachusetts Institute of Technology), “I-1”, 5.2%, 1/01/2028 | 1,000,000 | 1,235,110 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Northeastern University), “A”, 5%, 10/01/2035 | 1,500,000 | 1,597,260 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Stonehill College), 4.875%, 7/01/2027 | 250,000 | 259,823 | ||||||
Massachusetts Health & Higher Educational Facilities Authority Refunding Bonds Rev. (Suffolk University) , 6.25%, 7/01/2030 (Prerefunded 7/01/2019) | 1,285,000 | 1,357,140 | ||||||
Massachusetts Health & Higher Educational Facilities Authority Refunding Bonds Rev., Unrefunded Balance, (Suffolk University), 6.25%, 7/01/2030 | 715,000 | 749,241 | ||||||
Massachusetts Health and Educational Facilities Authority Rev. (Stonehill College), “L”, 5%, 7/01/2028 | 640,000 | 666,125 | ||||||
Massachusetts Health and Educational Facilities Authority Rev. (Stonehill College), “L”, 5%, 7/01/2029 | 300,000 | 312,246 | ||||||
Pennsylvania Higher Educational Facilities Authority Rev., AGM, 3%, 6/15/2045 | 1,075,000 | 944,506 | ||||||
Pinellas County, FL, Educational Facilities Authority Rev. (Barry University), 6%, 10/01/2041 | 295,000 | 319,261 |
53
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Educational Facilities Rev. (University Plaza Project), NATL, 5%, 7/01/2033 | $ | 310,000 | $ | 290,526 | ||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.125%, 4/01/2032 | 110,000 | 97,625 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.375%, 4/01/2042 | 370,000 | 318,200 | ||||||
Puerto Rico Industrial, Tourist, Medical, & | ||||||||
Environmental Central Facilities (University of Sacred Heart), 4.375%, 10/01/2031 | 75,000 | 53,063 | ||||||
Puerto Rico Industrial, Tourist, Medical, & Environmental Central Facilities (University of Sacred Heart), 5%, 10/01/2042 | 35,000 | 24,106 | ||||||
Red River, TX, Education Finance Corp., Higher Education Rev. (Houston Baptist University Project), 5.5%, 10/01/2046 | 470,000 | 516,445 | ||||||
University of Massachusetts Building Authority Project Rev., “1”, 5%, 11/01/2039 | 3,000,000 | 3,301,980 | ||||||
University of Massachusetts Building Authority Project Senior Rev., “1”, 5%, 11/01/2040 | 2,500,000 | 2,854,800 | ||||||
$ | 51,296,730 | |||||||
Universities - Dormitories - 0.8% | ||||||||
Massachusetts State Development Finance Agency Rev., Provident Commonwealth Education Resources Issue (Umass Boston Student Housing Project), 5%, 10/01/2041 | $ | 1,000,000 | $ | 1,087,940 | ||||
Massachusetts State Development Finance Agency Rev., Provident Commonwealth Education Resources Issue (Umass Boston Student Housing Project), 5%, 10/01/2048 | 1,000,000 | 1,086,420 | ||||||
$ | 2,174,360 | |||||||
Utilities - Investor Owned - 0.4% | ||||||||
Massachusetts Development Finance Agency, Solid Waste Disposal Rev. (Dominion Energy Brayton), 5.75%, 12/01/2042 (Prerefunded 5/01/2019) | $ | 1,000,000 | $ | 1,043,060 | ||||
Utilities - Municipal Owned - 0.5% | ||||||||
Guam Power Authority Rev., “A”, 5.5%, 10/01/2030 (Prerefunded 10/01/2020) | $ | 590,000 | $ | 642,410 | ||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/2039 | 200,000 | 216,792 | ||||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/2044 | 235,000 | 253,880 | ||||||
Puerto Rico Electric Power Authority Rev., “VV”, NATL, 5.25%, 7/01/2029 | 220,000 | 217,045 | ||||||
$ | 1,330,127 |
Issuer | Shares/Par | Value ($) | ||||||
Utilities - Other - 0.9% | ||||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2019 | $ | 805,000 | $ | 841,443 | ||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2021 | 405,000 | 444,953 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2022 | 210,000 | 233,881 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “C”, 5%, 2/01/2021 | 480,000 | 516,912 | ||||||
Texas Gas Acquisition & Supply Corp III., Gas Supply Rev., 5%, 12/15/2031 | 160,000 | 174,805 | ||||||
$ | 2,211,994 | |||||||
Water & Sewer Utility Revenue - 4.5% | ||||||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, ASSD GTY, 5%, 7/01/2028 | $ | 90,000 | $ | 90,139 | ||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, ASSD GTY, 5.125%, 7/01/2047 | 225,000 | 225,502 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5.625%, 7/01/2040 (Prerefunded 7/01/2020) | 305,000 | 330,751 | ||||||
Massachusetts Water Pollution Abatement Trust, 5.25%, 8/01/2027 | 1,280,000 | 1,571,200 | ||||||
Massachusetts Water Pollution Abatement Trust, 5.25%, 8/01/2033 | 2,000,000 | 2,560,980 | ||||||
Massachusetts Water Pollution Abatement Trust (MWRA Program), “A”, 5%, 8/01/2032 | 75,000 | 75,176 | ||||||
Massachusetts Water Resouces Authority, General Rev., “B”, AGM, 5.25%, 8/01/2030 | 620,000 | 782,589 | ||||||
Massachusetts Water Resources Authority General Refunding Rev. (Green Bonds), “C”, 4%, 8/01/2040 | 2,910,000 | 3,029,164 | ||||||
Massachusetts Water Resources Authority, “B”, AGM, 5.25%, 8/01/2029 | 595,000 | 746,832 | ||||||
Massachusetts Water Resources Authority, General Rev., “B”, AGM, 5.25%, 8/01/2031 | 1,625,000 | 2,059,021 | ||||||
$ | 11,471,354 | |||||||
Total Municipal Bonds (Identified Cost, $243,112,910) | $ | 252,760,741 | ||||||
Investment Companies (h) - 0.4% | ||||||||
Money Market Funds - 0.4% | ||||||||
MFS Institutional Money Market Portfolio, 1.71% (v) (Identified Cost, $932,702) | 932,882 | $ | 932,789 | |||||
Other Assets, Less Liabilities - 1.0% | 2,638,647 | |||||||
Net Assets - 100.0% | $ | 256,332,177 |
See Portfolio Footnotes and Notes to Financial Statements
54
Table of Contents
Portfolio of Investments – continued
Portfolio Footnotes:
(h) | 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. At period end, the aggregate values of each fund’s investments in affiliated issuers and in unaffiliated issuers were as follows: |
Affiliated Issuers | Unaffiliated Issuers | |||||||
Alabama Fund | $ | 305,782 | $ | 58,111,694 | ||||
Arkansas Fund | 41,881 | 158,422,356 | ||||||
California Fund | 1,958,769 | 364,451,661 | ||||||
Georgia Fund | 670,895 | 78,779,931 | ||||||
Maryland Fund | 2,279,833 | 86,661,791 | ||||||
Massachusetts Fund | 932,789 | 252,760,741 |
(p) | Primary inverse floater. |
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
The following abbreviations are used in this report and are defined:
AGM | Assured Guaranty Municipal | |
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 | |
COP | Certificate of Participation | |
ETM | Escrowed to Maturity | |
FGIC | Financial Guaranty Insurance Co. | |
FHA | Federal Housing Administration | |
FLR | Floating Rate. Interest rate resets periodically based on the parenthetically disclosed reference rate plus a spread (if any). The period-end rate reported may not be the current rate. | |
GNMA | Government National Mortgage Assn. | |
LEVRRS | Leveraged Reverse Rate Security | |
LOC | Letter of Credit | |
NATL | National Public Finance Guarantee Corp. | |
RIBS | Residual Interest Bonds | |
SYNCORA | Syncora Guarantee Inc. |
See Notes to Financial Statements
55
Table of Contents
Financial Statements
STATEMENTS OF ASSETS AND LIABILITIES
At 3/31/18
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 in unaffiliated issuers, at value (identified cost, $56,845,838, $156,202,514, and $349,967,913, respectively) | $58,111,694 | $158,422,356 | $364,451,661 | |||||||||
Investments in affiliated issuers, at value (identified cost, $305,753, $41,877, and $1,958,815, respectively) | 305,782 | 41,881 | 1,958,769 | |||||||||
Cash | — | — | 95,444 | |||||||||
Receivables for | ||||||||||||
Investments sold | 256,719 | 282,932 | — | |||||||||
Fund shares sold | 185,554 | 466 | 95,993 | |||||||||
Interest | 711,365 | 2,096,818 | 4,841,484 | |||||||||
Receivable from investment adviser | 13,213 | — | — | |||||||||
Other assets | 418 | 821 | 1,465 | |||||||||
Total assets | $59,584,745 | $160,845,274 | $371,444,816 | |||||||||
Liabilities | ||||||||||||
Payable to custodian | $29,094 | $111,439 | $— | |||||||||
Payables for | ||||||||||||
Distributions | 24,981 | 38,113 | 168,144 | |||||||||
Investments purchased | — | — | 1,145,240 | |||||||||
Fund shares reacquired | 54,338 | 240,640 | 663,794 | |||||||||
Payable to affiliates | ||||||||||||
Investment adviser | — | 8,119 | 18,546 | |||||||||
Shareholder servicing costs | 21,428 | 62,151 | 130,534 | |||||||||
Distribution and service fees | 1,204 | 1,853 | 6,009 | |||||||||
Payable for independent Trustees’ compensation | 1,672 | 1,600 | 6,451 | |||||||||
Accrued expenses and other liabilities | 63,278 | 69,422 | 87,056 | |||||||||
Total liabilities | $195,995 | $533,337 | $2,225,774 | |||||||||
Net assets | $59,388,750 | $160,311,937 | $369,219,042 | |||||||||
Net assets consist of | ||||||||||||
Paid-in capital | $59,436,674 | $162,911,179 | $360,155,684 | |||||||||
Unrealized appreciation (depreciation) | 1,265,885 | 2,219,846 | 14,483,702 | |||||||||
Accumulated net realized gain (loss) | (1,335,224 | ) | (4,872,548 | ) | (5,421,382 | ) | ||||||
Undistributed net investment income | 21,415 | 53,460 | 1,038 | |||||||||
Net assets | $59,388,750 | $160,311,937 | $369,219,042 |
56
Table of Contents
Statements of Assets and Liabilities – continued
Alabama Fund | Arkansas Fund | California Fund | ||||||||||
Net assets | ||||||||||||
Class A | $50,914,208 | $141,604,518 | $272,957,811 | |||||||||
Class B | 303,054 | 4,209,160 | 1,912,544 | |||||||||
Class C | — | — | 31,800,473 | |||||||||
Class I | 6,897,673 | 13,732,693 | 56,553,146 | |||||||||
Class R6 | 1,273,815 | 765,566 | 5,995,068 | |||||||||
Total net assets | $59,388,750 | $160,311,937 | $369,219,042 | |||||||||
Shares of beneficial interest outstanding | ||||||||||||
Class A | 5,083,153 | 14,682,433 | 45,967,702 | |||||||||
Class B | 30,251 | 436,033 | 322,000 | |||||||||
Class C | — | — | 5,336,968 | |||||||||
Class I | 722,477 | 1,434,403 | 5,849,841 | |||||||||
Class R6 | 133,424 | 79,951 | 620,546 | |||||||||
Total shares of beneficial interest outstanding | 5,969,305 | 16,632,820 | 58,097,057 | |||||||||
Class A shares | ||||||||||||
Net asset value per share | ||||||||||||
(net assets / shares of beneficial interest outstanding) | $10.02 | $9.64 | $5.94 | |||||||||
Offering price per share (100 / 95.75 x net asset value per share) | $10.46 | $10.07 | $6.20 | |||||||||
Class B shares | ||||||||||||
Net asset value and offering price per share | ||||||||||||
(net assets / shares of beneficial interest outstanding) | $10.02 | $9.65 | $5.94 | |||||||||
Class C shares | ||||||||||||
Net asset value and offering price per share | ||||||||||||
(net assets / shares of beneficial interest outstanding) | $— | $— | $5.96 | |||||||||
Class I shares | ||||||||||||
Net asset value, offering price, and redemption price per share | ||||||||||||
(net assets / shares of beneficial interest outstanding) | $9.55 | $9.57 | $9.67 | |||||||||
Class R6 shares | ||||||||||||
Net asset value, offering price, and redemption price per share | ||||||||||||
(net assets / shares of beneficial interest outstanding) | $9.55 | $9.58 | $9.66 |
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. Net asset value per share is calculated using actual net assets and shares outstanding rather than amounts that have been rounded for presentation purposes.
See Notes to Financial Statements
57
Table of Contents
Statements of Assets and Liabilities – continued
At 3/31/18 | Georgia Fund | Maryland Fund | Massachusetts Fund | |||||||||
Assets | ||||||||||||
Investments in unaffiliated issuers, at value (identified cost, $77,324,181, $84,879,603, and $243,112,910, respectively) | $78,779,931 | $86,661,791 | $252,760,741 | |||||||||
Investments in affiliated issuers, at value (identified cost, $670,827, $2,279,783, and $932,702, respectively) | 670,895 | 2,279,833 | 932,789 | |||||||||
Cash | — | 24,885 | 343,727 | |||||||||
Receivables for | ||||||||||||
Investments sold | 133,587 | 166,850 | 365,925 | |||||||||
Fund shares sold | 53,529 | 5,292 | 52,998 | |||||||||
Interest | 984,999 | 1,099,038 | 3,246,657 | |||||||||
Receivable from investment adviser | 14,625 | 16,194 | — | |||||||||
Receivable from distributor | — | — | 5,870 | |||||||||
Other assets | 507 | 527 | 1,031 | |||||||||
Total assets | $80,638,073 | $90,254,410 | $257,709,738 | |||||||||
Liabilities | ||||||||||||
Payable to custodian | $18,608 | $— | $— | |||||||||
Payables for | ||||||||||||
Distributions | 19,810 | 45,299 | 105,171 | |||||||||
Investments purchased | 1,118,025 | 1,496,651 | 827,888 | |||||||||
Fund shares reacquired | 98,688 | 66,795 | 263,573 | |||||||||
Payable to affiliates | ||||||||||||
Investment adviser | — | — | 12,898 | |||||||||
Shareholder servicing costs | 21,577 | 28,476 | 85,933 | |||||||||
Distribution and service fees | 1,789 | 1,192 | — | |||||||||
Payable for independent Trustees’ compensation | 1,887 | 3,933 | 3,895 | |||||||||
Accrued expenses and other liabilities | 68,312 | 66,938 | 78,203 | |||||||||
Total liabilities | $1,348,696 | $1,709,284 | $1,377,561 | |||||||||
Net assets | $79,289,377 | $88,545,126 | $256,332,177 | |||||||||
Net assets consist of | ||||||||||||
Paid-in capital | $79,120,839 | $89,103,545 | $250,247,178 | |||||||||
Unrealized appreciation (depreciation) | 1,455,818 | 1,782,238 | 9,647,918 | |||||||||
Accumulated net realized gain (loss) | (1,264,944 | ) | (2,523,394 | ) | (3,566,871 | ) | ||||||
Accumulated undistributed (distributions in excess of) net investment income | (22,336 | ) | 182,737 | 3,952 | ||||||||
Net assets | $79,289,377 | $88,545,126 | $256,332,177 |
58
Table of Contents
Statements of Assets and Liabilities – continued
Georgia Fund | Maryland Fund | Massachusetts Fund | ||||||||||
Net assets | ||||||||||||
Class A | $65,921,509 | $76,992,662 | $202,967,280 | |||||||||
Class B | 562,676 | 1,330,573 | 1,858,274 | |||||||||
Class I | 6,817,375 | 9,261,240 | 49,523,207 | |||||||||
Class R6 | 5,987,817 | 960,651 | 1,983,416 | |||||||||
Total net assets | $79,289,377 | $88,545,126 | $256,332,177 | |||||||||
Shares of beneficial interest outstanding | ||||||||||||
Class A | 6,227,866 | 7,229,561 | 18,624,182 | |||||||||
Class B | 52,960 | 124,992 | 170,207 | |||||||||
Class I | 710,382 | 964,029 | 5,192,058 | |||||||||
Class R6 | 623,574 | 99,993 | 207,797 | |||||||||
Total shares of beneficial interest outstanding | 7,614,782 | 8,418,575 | 24,194,244 | |||||||||
Class A shares | ||||||||||||
Net asset value per share | ||||||||||||
(net assets / shares of beneficial interest outstanding) | $10.58 | $10.65 | $10.90 | |||||||||
Offering price per share (100 / 95.75 x net asset value per share) | $11.05 | $11.12 | $11.38 | |||||||||
Class B shares | ||||||||||||
Net asset value and offering price per share | ||||||||||||
(net assets / shares of beneficial interest outstanding) | $10.62 | $10.65 | $10.92 | |||||||||
Class I shares | ||||||||||||
Net asset value, offering price, and redemption price per share | ||||||||||||
(net assets / shares of beneficial interest outstanding) | $9.60 | $9.61 | $9.54 | |||||||||
Class R6 shares | ||||||||||||
Net asset value, offering price, and redemption price per share | ||||||||||||
(net assets / shares of beneficial interest outstanding) | $9.60 | $9.61 | $9.54 |
On sales of $100,000 ore 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. Net asset value per share is calculated using actual net assets and shares outstanding rather than amounts that have been rounded for presentation purposes.
See Notes to Financial Statements
59
Table of Contents
Financial Statements
Year ended 3/31/18
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 (loss) | ||||||||||||
Interest | $2,593,327 | $6,259,281 | $15,826,558 | |||||||||
Dividends from affiliated issuers | 9,058 | 20,569 | 86,725 | |||||||||
Total investment income | $2,602,385 | $6,279,850 | $15,913,283 | |||||||||
Expenses | ||||||||||||
Management fee | $274,308 | $737,903 | $1,604,069 | |||||||||
Distribution and service fees | 137,507 | 418,689 | 1,026,904 | |||||||||
Shareholder servicing costs | 49,465 | 138,322 | 295,822 | |||||||||
Administrative services fee | 19,208 | 35,261 | 65,157 | |||||||||
Independent Trustees’ compensation | 3,040 | 4,932 | 10,058 | |||||||||
Custodian fee | 18,575 | 30,544 | 55,231 | |||||||||
Shareholder communications | 6,560 | 10,709 | 16,944 | |||||||||
Audit and tax fees | 53,935 | 53,964 | 54,011 | |||||||||
Legal fees | 13,516 | 11,642 | 18,810 | |||||||||
Registration fees | 59,695 | 63,040 | 81,195 | |||||||||
Miscellaneous | 17,274 | 20,249 | 25,321 | |||||||||
Total expenses | $653,083 | $1,525,255 | $3,253,522 | |||||||||
Fees paid indirectly | (234 | ) | (86 | ) | (110 | ) | ||||||
Reduction of expenses by investment adviser and distributor | (120,566 | ) | (241,436 | ) | (440,582 | ) | ||||||
Net expenses | $532,283 | $1,283,733 | $2,812,830 | |||||||||
Net investment income (loss) | $2,070,102 | $4,996,117 | $13,100,453 | |||||||||
Realized and unrealized gain (loss) | ||||||||||||
Realized gain (loss) (identified cost basis) | ||||||||||||
Unaffiliated issuers | $143,060 | $(214,007 | ) | $1,677,087 | ||||||||
Affiliated issuers | (158 | ) | (70 | ) | (2,441 | ) | ||||||
Futures contracts | — | 83,845 | 207,617 | |||||||||
Net realized gain (loss) | $142,902 | $(130,232 | ) | $1,882,263 | ||||||||
Change in unrealized appreciation (depreciation) | ||||||||||||
Unaffiliated issuers | $(813,647 | ) | $(1,284,788 | ) | $(3,701,915 | ) | ||||||
Affiliated issuers | 48 | 76 | 57 | |||||||||
Net unrealized gain (loss) | $(813,599 | ) | $(1,284,712 | ) | $(3,701,858 | ) | ||||||
Net realized and unrealized gain (loss) | $(670,697 | ) | $(1,414,944 | ) | $(1,819,595 | ) | ||||||
Change in net assets from operations | $1,399,405 | $3,581,173 | $11,280,858 |
See Notes to Financial Statements
60
Table of Contents
Statements of Operations – continued
Year ended 3/31/18 | Georgia Fund | Maryland Fund | Massachusetts Fund | |||||||||
Net investment income (loss) | ||||||||||||
Interest | $3,170,095 | $3,806,411 | $11,275,044 | |||||||||
Dividends from affiliated issuers | 20,750 | 13,515 | 43,605 | |||||||||
Total investment income | $3,190,845 | $3,819,926 | $11,318,649 | |||||||||
Expenses | ||||||||||||
Management fee | $345,052 | $399,257 | $1,090,462 | |||||||||
Distribution and service fees | 172,830 | 213,639 | 540,946 | |||||||||
Shareholder servicing costs | 54,754 | 73,347 | 201,870 | |||||||||
Administrative services fee | 21,635 | 23,537 | 47,442 | |||||||||
Independent Trustees’ compensation | 3,097 | 3,502 | 9,698 | |||||||||
Custodian fee | 24,533 | 21,789 | 38,736 | |||||||||
Shareholder communications | 7,961 | 10,751 | 16,478 | |||||||||
Audit and tax fees | 53,939 | 53,943 | 53,983 | |||||||||
Legal fees | 16,228 | 14,806 | 11,238 | |||||||||
Registration fees | 62,218 | 63,020 | 65,495 | |||||||||
Miscellaneous | 19,125 | 18,477 | 21,520 | |||||||||
Total expenses | $781,372 | $896,068 | $2,097,868 | |||||||||
Fees paid indirectly | (29 | ) | (80 | ) | (52 | ) | ||||||
Reduction of expenses by investment adviser and distributor | (110,663 | ) | (173,593 | ) | (69,039 | ) | ||||||
Net expenses | $670,680 | $722,395 | $2,028,777 | |||||||||
Net investment income (loss) | $2,520,165 | $3,097,531 | $9,289,872 | |||||||||
Realized and unrealized gain (loss) | ||||||||||||
Realized gain (loss) (identified cost basis) | ||||||||||||
Unaffiliated issuers | $81,386 | $283,666 | $809,929 | |||||||||
Affiliated issuers | (381 | ) | (216 | ) | (739 | ) | ||||||
Futures contracts | 39,926 | 47,912 | 123,772 | |||||||||
Net realized gain (loss) | $120,931 | $331,362 | $932,962 | |||||||||
Change in unrealized appreciation (depreciation) | ||||||||||||
Unaffiliated issuers | $(1,088,747 | ) | $(1,319,997 | ) | $(4,159,155 | ) | ||||||
Affiliated issuers | 136 | 100 | 194 | |||||||||
Net unrealized gain (loss) | $(1,088,611 | ) | $(1,319,897 | ) | $(4,158,961 | ) | ||||||
Net realized and unrealized gain (loss) | $(967,680 | ) | $(988,535 | ) | $(3,225,999 | ) | ||||||
Change in net assets from operations | $1,552,485 | $2,108,996 | $6,063,873 |
See Notes to Financial Statements
61
Table of Contents
Financial Statements
STATEMENTS OF CHANGES IN NET ASSETS
These statements describe the increases and/or decreases in net assets resulting from operations, any distributions, and any shareholder transactions.
Year ended 3/31/18 | Alabama Fund | Arkansas Fund | California Fund | |||||||||
Change in net assets | ||||||||||||
From operations | ||||||||||||
Net investment income (loss) | $2,070,102 | $4,996,117 | $13,100,453 | |||||||||
Net realized gain (loss) | 142,902 | (130,232 | ) | 1,882,263 | ||||||||
Net unrealized gain (loss) | (813,599 | ) | (1,284,712 | ) | (3,701,858 | ) | ||||||
Change in net assets from operations | $1,399,405 | $3,581,173 | $11,280,858 | |||||||||
Distributions declared to shareholders | ||||||||||||
From net investment income | $(2,033,340 | ) | $(4,940,707 | ) | $(12,462,734 | ) | ||||||
Change in net assets from fund share transactions | $(203,446 | ) | $(335,928 | ) | $40,139,326 | |||||||
Total change in net assets | $(837,381 | ) | $(1,695,462 | ) | $38,957,450 | |||||||
Net assets | ||||||||||||
At beginning of period | 60,226,131 | 162,007,399 | 330,261,592 | |||||||||
At end of period | $59,388,750 | $160,311,937 | $369,219,042 | |||||||||
Undistributed net investment income included in net assets at end of period | $21,415 | $53,460 | $1,038 | |||||||||
Year ended 3/31/18 | Georgia Fund | Maryland Fund | Massachusetts Fund | |||||||||
Change in net assets | ||||||||||||
From operations | ||||||||||||
Net investment income (loss) | $2,520,165 | $3,097,531 | $9,289,872 | |||||||||
Net realized gain (loss) | 120,931 | 331,362 | 932,962 | |||||||||
Net unrealized gain (loss) | (1,088,611 | ) | (1,319,897 | ) | (4,158,961 | ) | ||||||
Change in net assets from operations | $1,552,485 | $2,108,996 | $6,063,873 | |||||||||
Distributions declared to shareholders | ||||||||||||
From net investment income | $(2,366,561 | ) | $(3,016,866 | ) | $(8,918,061 | ) | ||||||
Change in net assets from fund share transactions | $10,318,386 | $954,960 | $26,206,307 | |||||||||
Total change in net assets | $9,504,310 | $47,090 | $23,352,119 | |||||||||
Net assets | ||||||||||||
At beginning of period | 69,785,067 | 88,498,036 | 232,980,058 | |||||||||
At end of period | $79,289,377 | $88,545,126 | $256,332,177 | |||||||||
Accumulated undistributed (distributions in excess of) net investment income included in net assets at end of period | $(22,336 | ) | $182,737 | $3,952 |
See Notes to Financial Statements
62
Table of Contents
Statements of Changes in Net Assets – continued
Year ended 3/31/17 | Alabama Fund | Arkansas Fund | California Fund | |||||||||
Change in net assets | ||||||||||||
From operations | ||||||||||||
Net investment income (loss) | $2,116,424 | $5,505,189 | $12,075,243 | |||||||||
Net realized gain (loss) | (273,862 | ) | (275,083 | ) | (501,814 | ) | ||||||
Net unrealized gain (loss) | (2,012,476 | ) | (5,940,829 | ) | (11,306,247 | ) | ||||||
Change in net assets from operations | $(169,914 | ) | $(710,723 | ) | $267,182 | |||||||
Distributions declared to shareholders | ||||||||||||
From net investment income | $(2,067,384 | ) | $(5,261,045 | ) | $(11,265,295 | ) | ||||||
Change in net assets from fund share transactions | $8,843,324 | $1,004,996 | $22,660,872 | |||||||||
Total change in net assets | $6,606,026 | $(4,966,772 | ) | $11,662,759 | ||||||||
Net assets | ||||||||||||
At beginning of period | 53,620,105 | 166,974,171 | 318,598,833 | |||||||||
At end of period | $60,226,131 | $162,007,399 | $330,261,592 | |||||||||
Undistributed net investment income included in net assets at end of period | $28,045 | $45,248 | $30,081 | |||||||||
Year ended 3/31/17 | Georgia Fund | Maryland Fund | Massachusetts Fund | |||||||||
Change in net assets | ||||||||||||
From operations | ||||||||||||
Net investment income (loss) | $2,170,985 | $3,210,603 | $9,567,141 | |||||||||
Net realized gain (loss) | (99,565 | ) | (209,386 | ) | (134,081 | ) | ||||||
Net unrealized gain (loss) | (2,204,006 | ) | (2,630,360 | ) | (9,582,493 | ) | ||||||
Change in net assets from operations | $(132,586 | ) | $370,857 | $(149,433 | ) | |||||||
Distributions declared to shareholders | ||||||||||||
From net investment income | $(2,044,021 | ) | $(3,009,536 | ) | $(8,488,610 | ) | ||||||
Change in net assets from fund share transactions | $9,550,557 | $6,983,288 | $11,809,759 | |||||||||
Total change in net assets | $7,373,950 | $4,344,609 | $(3,171,716 | ) | ||||||||
Net assets | ||||||||||||
At beginning of period | 62,411,117 | 84,153,427 | 229,808,342 | |||||||||
At end of period | $69,785,067 | $88,498,036 | $232,980,058 | |||||||||
Accumulated undistributed (distributions in excess of) net investment income included in net assets at end of period | $(23,257 | ) | $237,557 | $45,730 |
See Notes to Financial Statements
63
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 past 5 years (or life of a particular share class, if shorter). Certain information reflects financial results for a single fund share. The total returns in the table represent the rate that 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.
Year ended | ||||||||||||||||||||
Class A | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | |||||||||||||||
Net asset value, beginning of period | $10.12 | $10.49 | $10.48 | $10.11 | $10.70 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.34 | $0.37 | (c) | $0.39 | $0.38 | $0.40 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.10 | ) | (0.37 | ) | (0.01 | ) | 0.36 | (0.60 | ) | |||||||||||
Total from investment operations | $0.24 | $0.00 | (w) | $0.38 | $0.74 | $(0.20 | ) | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.34 | ) | $(0.37 | ) | $(0.37 | ) | $(0.37 | ) | $(0.39 | ) | ||||||||||
Net asset value, end of period (x) | $10.02 | $10.12 | $10.49 | $10.48 | $10.11 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 2.35 | (0.07 | )(c) | 3.75 | 7.37 | (1.83 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.10 | 1.07 | (c) | 1.06 | 1.09 | 1.05 | ||||||||||||||
Expenses after expense reductions (f) | 0.90 | 0.89 | (c) | 0.93 | 0.93 | 0.93 | ||||||||||||||
Net investment income (loss) | 3.37 | 3.61 | (c) | 3.76 | 3.69 | 3.94 | ||||||||||||||
Portfolio turnover | 17 | 15 | 16 | 22 | 15 | |||||||||||||||
Net assets at end of period (000 omitted) | $50,914 | $53,883 | $52,956 | $53,140 | $53,245 | |||||||||||||||
Year ended | ||||||||||||||||||||
Class B | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | |||||||||||||||
Net asset value, beginning of period | $10.12 | $10.49 | $10.48 | $10.11 | $10.70 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.27 | $0.30 | (c) | $0.31 | $0.30 | $0.32 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.11 | ) | (0.38 | ) | (0.01 | ) | 0.36 | (0.60 | ) | |||||||||||
Total from investment operations | $0.16 | $(0.08 | ) | $0.30 | $0.66 | $(0.28 | ) | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.26 | ) | $(0.29 | ) | $(0.29 | ) | $(0.29 | ) | $(0.31 | ) | ||||||||||
Net asset value, end of period (x) | $10.02 | $10.12 | $10.49 | $10.48 | $10.11 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 1.59 | (0.81 | )(c) | 2.97 | 6.57 | (2.56 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.84 | 1.82 | (c) | 1.81 | 1.84 | 1.80 | ||||||||||||||
Expenses after expense reductions (f) | 1.65 | 1.65 | (c) | 1.68 | 1.68 | 1.68 | ||||||||||||||
Net investment income (loss) | 2.63 | 2.86 | (c) | 2.99 | 2.92 | 3.18 | ||||||||||||||
Portfolio turnover | 17 | 15 | 16 | 22 | 15 | |||||||||||||||
Net assets at end of period (000 omitted) | $303 | $467 | $614 | $626 | $664 |
See Notes to Financial Statements
64
Table of Contents
Financial Highlights – continued
MFS ALABAMA MUNICIPAL BOND FUND – continued
Year ended | ||||||||
Class I | 3/31/18 | 3/31/17 (i) | ||||||
Net asset value, beginning of period | $9.65 | $10.00 | ||||||
Income (loss) from investment operations | ||||||||
Net investment income (loss) (d) | $0.35 | $0.38 | (c) | |||||
Net realized and unrealized gain (loss) | (0.11 | ) | (0.36 | ) | ||||
Total from investment operations | $0.24 | $0.02 | ||||||
Less distributions declared to shareholders | ||||||||
From net investment income | $(0.34 | ) | $(0.37 | ) | ||||
Net asset value, end of period (x) | $9.55 | $9.65 | ||||||
Total return (%) (r)(s)(t)(x) | 2.55 | 0.21 | (c) | |||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||
Expenses before expense reductions (f) | 0.85 | 0.86 | (c) | |||||
Expenses after expense reductions (f) | 0.65 | 0.64 | (c) | |||||
Net investment income (loss) | 3.62 | 3.84 | (c) | |||||
Portfolio turnover | 17 | 15 | ||||||
Net assets at end of period (000 omitted) | $6,898 | $5,876 | ||||||
Year ended | ||||||||
Class R6 | 3/31/18 (i) | |||||||
Net asset value, beginning of period | $9.76 | |||||||
Income (loss) from investment operations | ||||||||
Net investment income (loss) (d) | $0.24 | |||||||
Net realized and unrealized gain (loss) | (0.22 | ) | ||||||
Total from investment operations | $0.02 | |||||||
Less distributions declared to shareholders | ||||||||
From net investment income | $(0.23 | ) | ||||||
Net asset value, end of period (x) | $9.55 | |||||||
Total return (%) (r)(s)(t)(x) | 0.25 | (n) | ||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||
Expenses before expense reductions (f) | 0.84 | (a) | ||||||
Expenses after expense reductions (f) | 0.58 | (a) | ||||||
Net investment income (loss) | 3.70 | (a) | ||||||
Portfolio turnover | 17 | |||||||
Net assets at end of period (000 omitted) | $1,274 |
(a) | Annualized. |
(c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(i) | For the period from the class inception, April 1, 2016 (Class I) and August 1, 2017 (Class R6), through the stated period end. |
(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
65
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 past 5 years (or life of a particular share class, if shorter). Certain information reflects financial results for a single fund share. The total returns in the table represent the rate that 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.
Year ended | ||||||||||||||||||||
Class A | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | |||||||||||||||
Net asset value, beginning of period | $9.73 | $10.07 | $10.04 | $9.66 | $10.23 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.30 | $0.33 | (c) | $0.34 | $0.32 | $0.34 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.09 | ) | (0.35 | ) | (0.01 | ) | 0.37 | (0.58 | ) | |||||||||||
Total from investment operations | $0.21 | $(0.02 | ) | $0.33 | $0.69 | $(0.24 | ) | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.30 | ) | $(0.32 | ) | $(0.30 | ) | $(0.31 | ) | $(0.33 | ) | ||||||||||
Net asset value, end of period (x) | $9.64 | $9.73 | $10.07 | $10.04 | $9.66 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 2.12 | (0.25 | )(c) | 3.36 | 7.21 | (2.32 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 0.92 | 0.92 | (c) | 0.90 | 0.90 | 0.89 | ||||||||||||||
Expenses after expense reductions (f) | 0.77 | 0.76 | (c) | 0.74 | 0.74 | 0.74 | ||||||||||||||
Net investment income (loss) | 3.06 | 3.33 | (c) | 3.41 | 3.25 | 3.48 | ||||||||||||||
Portfolio turnover | 17 | 17 | 11 | 20 | 19 | |||||||||||||||
Net assets at end of period (000 omitted) | $141,605 | $145,392 | $160,133 | $169,354 | $172,590 | |||||||||||||||
Year ended | ||||||||||||||||||||
Class B | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | |||||||||||||||
Net asset value, beginning of period | $9.73 | $10.08 | $10.05 | $9.67 | $10.24 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.23 | $0.26 | (c) | $0.26 | $0.25 | $0.26 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.09 | ) | (0.37 | ) | (0.01 | ) | 0.36 | (0.58 | ) | |||||||||||
Total from investment operations | $0.14 | $(0.11 | ) | $0.25 | $0.61 | $(0.32 | ) | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.22 | ) | $(0.24 | ) | $(0.22 | ) | $(0.23 | ) | $(0.25 | ) | ||||||||||
Net asset value, end of period (x) | $9.65 | $9.73 | $10.08 | $10.05 | $9.67 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 1.47 | (1.10 | )(c) | 2.58 | 6.40 | (3.06 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.68 | 1.66 | (c) | 1.65 | 1.65 | 1.64 | ||||||||||||||
Expenses after expense reductions (f) | 1.52 | 1.52 | (c) | 1.51 | 1.50 | 1.51 | ||||||||||||||
Net investment income (loss) | 2.31 | 2.57 | (c) | 2.65 | 2.49 | 2.71 | ||||||||||||||
Portfolio turnover | 17 | 17 | 11 | 20 | 19 | |||||||||||||||
Net assets at end of period (000 omitted) | $4,209 | $5,882 | $6,791 | $6,989 | $7,234 |
See Notes to Financial Statements
66
Table of Contents
Financial Highlights – continued
MFS ARKANSAS MUNICIPAL BOND FUND – continued
Year ended | ||||||||
Class I | 3/31/18 | 3/31/17 (i) | ||||||
Net asset value, beginning of period | $9.65 | $10.00 | ||||||
Income (loss) from investment operations | ||||||||
Net investment income (loss) (d) | $0.31 | $0.34 | (c) | |||||
Net realized and unrealized gain (loss) | (0.09 | ) | (0.37 | ) | ||||
Total from investment operations | $0.22 | $(0.03 | ) | |||||
Less distributions declared to shareholders | ||||||||
From net investment income | $(0.30 | ) | $(0.32 | ) | ||||
Net asset value, end of period (x) | $9.57 | $9.65 | ||||||
Total return (%) (r)(s)(t)(x) | 2.32 | (0.28 | )(c) | |||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||
Expenses before expense reductions (f) | 0.67 | 0.68 | (c) | |||||
Expenses after expense reductions (f) | 0.67 | 0.67 | (c) | |||||
Net investment income (loss) | 3.16 | 3.43 | (c) | |||||
Portfolio turnover | 17 | 17 | ||||||
Net assets at end of period (000 omitted) | $13,733 | $10,733 | ||||||
Year ended | ||||||||
Class R6 | 3/31/18 (i) | |||||||
Net asset value, beginning of period | $9.78 | |||||||
Income (loss) from investment operations | ||||||||
Net investment income (loss) (d) | $0.20 | |||||||
Net realized and unrealized gain (loss) | (0.19 | ) | ||||||
Total from investment operations | $0.01 | |||||||
Less distributions declared to shareholders | ||||||||
From net investment income | $(0.21 | ) | ||||||
Net asset value, end of period (x) | $9.58 | |||||||
Total return (%) (r)(s)(t)(x) | 0.09 | (n) | ||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||
Expenses before expense reductions (f) | 0.61 | (a) | ||||||
Expenses after expense reductions (f) | 0.61 | (a) | ||||||
Net investment income (loss) | 3.19 | (a) | ||||||
Portfolio turnover | 17 | |||||||
Net assets at end of period (000 omitted) | $766 |
(a) | Annualized. |
(c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(i) | For the period from the class inception, April 1, 2016 (Class I) and August 1, 2017 (Class R6), through the stated period end. |
(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
67
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 past 5 years (or life of a particular share class, if shorter). Certain information reflects financial results for a single fund share. The total returns in the table represent the rate that 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.
Year ended | ||||||||||||||||||||
Class A | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | |||||||||||||||
Net asset value, beginning of period | $5.95 | $6.14 | $6.05 | $5.74 | $6.05 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.23 | $0.23 | (c) | $0.23 | $0.23 | $0.24 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.02 | ) | (0.21 | ) | 0.08 | 0.30 | (0.32 | ) | ||||||||||||
Total from investment operations | $0.21 | $0.02 | $0.31 | $0.53 | $(0.08 | ) | ||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.22 | ) | $(0.21 | ) | $(0.22 | ) | $(0.22 | ) | $(0.23 | ) | ||||||||||
Net asset value, end of period (x) | $5.94 | $5.95 | $6.14 | $6.05 | $5.74 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 3.47 | 0.33 | (c) | 5.23 | 9.38 | (1.20 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 0.88 | 0.88 | (c) | 0.88 | 0.87 | 0.87 | ||||||||||||||
Expenses after expense reductions (f) | 0.72 | 0.72 | (c) | 0.72 | 0.72 | 0.72 | ||||||||||||||
Net investment income (loss) | 3.75 | 3.72 | (c) | 3.78 | 3.82 | 4.17 | ||||||||||||||
Portfolio turnover | 15 | 17 | 18 | 24 | 26 | |||||||||||||||
Net assets at end of period (000 omitted) | $272,958 | $251,271 | $281,670 | $255,482 | $232,451 | |||||||||||||||
Year ended | ||||||||||||||||||||
Class B | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | |||||||||||||||
Net asset value, beginning of period | $5.95 | $6.14 | $6.05 | $5.74 | $6.05 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.18 | $0.18 | (c) | $0.18 | $0.18 | $0.19 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.02 | ) | (0.20 | ) | 0.08 | 0.31 | (0.31 | ) | ||||||||||||
Total from investment operations | $0.16 | $(0.02 | ) | $0.26 | $0.49 | $(0.12 | ) | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.17 | ) | $(0.17 | ) | $(0.17 | ) | $(0.18 | ) | $(0.19 | ) | ||||||||||
Net asset value, end of period (x) | $5.94 | $5.95 | $6.14 | $6.05 | $5.74 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 2.69 | (0.43 | )(c) | 4.43 | 8.55 | (1.96 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.63 | 1.63 | (c) | 1.63 | 1.62 | 1.62 | ||||||||||||||
Expenses after expense reductions (f) | 1.48 | 1.49 | (c) | 1.49 | 1.48 | 1.49 | ||||||||||||||
Net investment income (loss) | 3.02 | 2.95 | (c) | 3.03 | 3.07 | 3.40 | ||||||||||||||
Portfolio turnover | 15 | 17 | 18 | 24 | 26 | |||||||||||||||
Net assets at end of period (000 omitted) | $1,913 | $2,672 | $3,131 | $3,535 | $3,976 |
See Notes to Financial Statements
68
Table of Contents
Financial Highlights – continued
MFS CALIFORNIA MUNICIPAL BOND FUND – continued
Year ended | ||||||||||||||||||||
Class C | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | |||||||||||||||
Net asset value, beginning of period | $5.97 | $6.16 | $6.07 | $5.76 | $6.07 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.17 | $0.17 | (c) | $0.17 | $0.17 | $0.19 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.02 | ) | (0.20 | ) | 0.08 | 0.31 | (0.32 | ) | ||||||||||||
Total from investment operations | $0.15 | $(0.03 | ) | $0.25 | $0.48 | $(0.13 | ) | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.16 | ) | $(0.16 | ) | $(0.16 | ) | $(0.17 | ) | $(0.18 | ) | ||||||||||
Net asset value, end of period (x) | $5.96 | $5.97 | $6.16 | $6.07 | $5.76 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 2.54 | (0.55 | )(c) | 4.27 | 8.37 | (2.08 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.63 | 1.63 | (c) | 1.63 | 1.62 | 1.62 | ||||||||||||||
Expenses after expense reductions (f) | 1.62 | 1.62 | (c) | 1.62 | 1.62 | 1.62 | ||||||||||||||
Net investment income (loss) | 2.86 | 2.82 | (c) | 2.87 | 2.91 | 3.26 | ||||||||||||||
Portfolio turnover | 15 | 17 | 18 | 24 | 26 | |||||||||||||||
Net assets at end of period (000 omitted) | $31,800 | $33,950 | $33,748 | $30,907 | $28,672 | |||||||||||||||
Year ended | ||||||||||||||||||||
Class I | 3/31/18 | 3/31/17(i) | ||||||||||||||||||
Net asset value, beginning of period | $9.68 | $10.00 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.37 | $0.38 | (c) | |||||||||||||||||
Net realized and unrealized gain (loss) | (0.02 | ) | (0.36 | ) | ||||||||||||||||
Total from investment operations | $0.35 | $0.02 | ||||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.36 | ) | $(0.34 | ) | ||||||||||||||||
Net asset value, end of period (x) | $9.67 | $9.68 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 3.63 | 0.20 | (c) | |||||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 0.62 | 0.63 | (c) | |||||||||||||||||
Expenses after expense reductions (f) | 0.61 | 0.63 | (c) | |||||||||||||||||
Net investment income (loss) | 3.83 | 3.83 | (c) | |||||||||||||||||
Portfolio turnover | 15 | 17 | ||||||||||||||||||
Net assets at end of period (000 omitted) | $56,553 | $42,369 |
See Notes to Financial Statements
69
Table of Contents
Financial Highlights – continued
MFS CALIFORNIA MUNICIPAL BOND FUND – continued
Year ended | ||||
Class R6 | 3/31/18 (i) | |||
Net asset value, beginning of period | $9.84 | |||
Income (loss) from investment operations | ||||
Net investment income (loss) (d) | $0.24 | |||
Net realized and unrealized gain (loss) | (0.18 | ) | ||
Total from investment operations | $0.06 | |||
Less distributions declared to shareholders | ||||
From net investment income | $(0.24 | ) | ||
Net asset value, end of period (x) | $9.66 | |||
Total return (%) (r)(s)(t)(x) | 0.61 | (n) | ||
Ratios (%) (to average net assets) and Supplemental data: | ||||
Expenses before expense reductions (f) | 0.56 | (a) | ||
Expenses after expense reductions (f) | 0.55 | (a) | ||
Net investment income (loss) | 3.78 | (a) | ||
Portfolio turnover | 15 | |||
Net assets at end of period (000 omitted) | $5,995 |
(a) | Annualized. |
(c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(i) | For the period from the class inception, April 1, 2016 (Class I) and August 1, 2017 (Class R6), through the stated period end. |
(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
70
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 past 5 years (or life of a particular share class, if shorter). Certain information reflects financial results for a single fund share. The total returns in the table represent the rate that 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.
Year ended | ||||||||||||||||||||
Class A | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | |||||||||||||||
Net asset value, beginning of period | $10.68 | $11.02 | $11.02 | $10.58 | $11.18 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.35 | $0.36 | (c) | $0.36 | $0.37 | $0.38 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.12 | ) | (0.36 | ) | (0.01 | ) | 0.42 | (0.62 | ) | |||||||||||
Total from investment operations | $0.23 | $0.00 | (w) | $0.35 | $0.79 | $(0.24 | ) | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.33 | ) | $(0.34 | ) | $(0.35 | ) | $(0.35 | ) | $(0.36 | ) | ||||||||||
Net asset value, end of period (x) | $10.58 | $10.68 | $11.02 | $11.02 | $10.58 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 2.15 | (0.06 | )(c) | 3.28 | 7.53 | (2.09 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.04 | 1.03 | (c) | 1.03 | 1.04 | 1.01 | ||||||||||||||
Expenses after expense reductions (f) | 0.90 | 0.90 | (c) | 0.95 | 0.95 | 0.95 | ||||||||||||||
Net investment income (loss) | 3.26 | 3.26 | (c) | 3.32 | 3.37 | 3.54 | ||||||||||||||
Portfolio turnover | 12 | 8 | 11 | 16 | 15 | |||||||||||||||
Net assets at end of period (000 omitted) | $65,922 | $61,229 | $61,065 | $59,289 | $59,068 | |||||||||||||||
Year ended | ||||||||||||||||||||
Class B | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | |||||||||||||||
Net asset value, beginning of period | $10.72 | $11.06 | $11.06 | $10.62 | $11.22 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.27 | $0.28 | (c) | $0.28 | $0.29 | $0.29 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.12 | ) | (0.36 | ) | (0.01 | ) | 0.42 | (0.61 | ) | |||||||||||
Total from investment operations | $0.15 | $(0.08 | ) | $0.27 | $0.71 | $(0.32 | ) | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.25 | ) | $(0.26 | ) | $(0.27 | ) | $(0.27 | ) | $(0.28 | ) | ||||||||||
Net asset value, end of period (x) | $10.62 | $10.72 | $11.06 | $11.06 | $10.62 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 1.40 | (0.79 | )(c) | 2.50 | 6.70 | (2.81 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.79 | 1.78 | (c) | 1.78 | 1.78 | 1.76 | ||||||||||||||
Expenses after expense reductions (f) | 1.65 | 1.66 | (c) | 1.70 | 1.70 | 1.70 | ||||||||||||||
Net investment income (loss) | 2.54 | 2.52 | (c) | 2.56 | 2.61 | 2.76 | ||||||||||||||
Portfolio turnover | 12 | 8 | 11 | 16 | 15 | |||||||||||||||
Net assets at end of period (000 omitted) | $563 | $1,105 | $1,296 | $1,561 | $1,702 |
See Notes to Financial Statements
71
Table of Contents
Financial Highlights – continued
MFS GEORGIA MUNICIPAL BOND FUND – continued
Year ended | ||||||||
Class I | 3/31/18 | 3/31/17 (i) | ||||||
Net asset value, beginning of period | $9.69 | $10.00 | ||||||
Income (loss) from investment operations | ||||||||
Net investment income (loss) (d) | $0.34 | $0.35 | (c) | |||||
Net realized and unrealized gain (loss) | (0.11 | ) | (0.33 | ) | ||||
Total from investment operations | $0.23 | $0.02 | ||||||
Less distributions declared to shareholders | ||||||||
From net investment income | $(0.32 | ) | $(0.33 | ) | ||||
Net asset value, end of period (x) | $9.60 | $9.69 | ||||||
Total return (%) (r)(s)(t)(x) | 2.40 | 0.19 | (c) | |||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||
Expenses before expense reductions (f) | 0.79 | 0.80 | (c) | |||||
Expenses after expense reductions (f) | 0.65 | 0.64 | (c) | |||||
Net investment income (loss) | 3.49 | 3.52 | (c) | |||||
Portfolio turnover | 12 | 8 | ||||||
Net assets at end of period (000 omitted) | $6,817 | $7,451 | ||||||
Year ended | ||||||||
Class R6 | 3/31/18 (i) | |||||||
Net asset value, beginning of period | $9.82 | |||||||
Income (loss) from investment operations | ||||||||
Net investment income (loss) (d) | $0.23 | |||||||
Net realized and unrealized gain (loss) | (0.23 | ) | ||||||
Total from investment operations | $0.00 | (w) | ||||||
Less distributions declared to shareholders | ||||||||
From net investment income | $(0.22 | ) | ||||||
Net asset value, end of period (x) | $9.60 | |||||||
Total return (%) (r)(s)(t)(x) | (0.05 | )(n) | ||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||
Expenses before expense reductions (f) | 0.82 | (a) | ||||||
Expenses after expense reductions (f) | 0.59 | (a) | ||||||
Net investment income (loss) | 3.56 | (a) | ||||||
Portfolio turnover | 12 | |||||||
Net assets at end of period (000 omitted) | $5,988 |
(a) | Annualized. |
(c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(i) | For the period from the class inception, April 1, 2016 (Class I) and August 1, 2017 (Class R6), through the stated period end. |
(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
72
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 past 5 years (or life of a particular share class, if shorter). Certain information reflects financial results for a single fund share. The total returns in the table represent the rate that 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.
Year ended | ||||||||||||||||||||
Class A | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | |||||||||||||||
Net asset value, beginning of period | $10.76 | $11.09 | $11.13 | $10.76 | $11.47 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.38 | $0.40 | (c) | $0.39 | $0.38 | $0.42 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.12 | ) | (0.35 | ) | (0.05 | ) | 0.36 | (0.73 | ) | |||||||||||
Total from investment operations | $0.26 | $0.05 | $0.34 | $0.74 | $(0.31 | ) | ||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.37 | ) | $(0.38 | ) | $(0.38 | ) | $(0.37 | ) | $(0.40 | ) | ||||||||||
Net asset value, end of period (x) | $10.65 | $10.76 | $11.09 | $11.13 | $10.76 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 2.39 | 0.43 | (c) | 3.09 | 6.99 | (2.66 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.02 | 0.99 | (c) | 0.98 | 0.97 | 0.96 | ||||||||||||||
Expenses after expense reductions (f) | 0.82 | 0.82 | (c) | 0.87 | 0.95 | 0.95 | ||||||||||||||
Net investment income (loss) | 3.48 | 3.68 | (c) | 3.57 | 3.46 | 3.85 | ||||||||||||||
Portfolio turnover | 23 | 17 | 10 | 18 | 21 | |||||||||||||||
Net assets at end of period (000 omitted) | $76,993 | $80,456 | $82,145 | $86,455 | $90,417 | |||||||||||||||
Year ended | ||||||||||||||||||||
Class B | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | |||||||||||||||
Net asset value, beginning of period | $10.76 | $11.08 | $11.12 | $10.75 | $11.47 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.29 | $0.32 | (c) | $0.31 | $0.30 | $0.34 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.11 | ) | (0.34 | ) | (0.06 | ) | 0.36 | (0.74 | ) | |||||||||||
Total from investment operations | $0.18 | $(0.02 | ) | $0.25 | $0.66 | $(0.40 | ) | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.29 | ) | $(0.30 | ) | $(0.29 | ) | $(0.29 | ) | $(0.32 | ) | ||||||||||
Net asset value, end of period (x) | $10.65 | $10.76 | $11.08 | $11.12 | $10.75 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 1.62 | (0.23 | )(c) | 2.32 | 6.19 | (3.47 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.77 | 1.74 | (c) | 1.73 | 1.72 | 1.71 | ||||||||||||||
Expenses after expense reductions (f) | 1.58 | 1.57 | (c) | 1.62 | 1.70 | 1.70 | ||||||||||||||
Net investment income (loss) | 2.73 | 2.94 | (c) | 2.82 | 2.70 | 3.10 | ||||||||||||||
Portfolio turnover | 23 | 17 | 10 | 18 | 21 | |||||||||||||||
Net assets at end of period (000 omitted) | $1,331 | $1,605 | $1,958 | $2,308 | $2,198 |
See Notes to Financial Statements
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Financial Highlights – continued
MFS MARYLAND MUNICIPAL BOND FUND – continued
Year ended | ||||||||
Class I | 3/31/18 | 3/31/17 (i) | ||||||
Net asset value, beginning of period | $9.71 | $10.00 | ||||||
Income (loss) from investment operations | ||||||||
Net investment income (loss) (d) | $0.36 | $0.38 | (c) | |||||
Net realized and unrealized gain (loss) | (0.11 | ) | (0.30 | ) | ||||
Total from investment operations | $0.25 | $0.08 | ||||||
Less distributions declared to shareholders | ||||||||
From net investment income | $(0.35 | ) | $(0.37 | ) | ||||
Net asset value, end of period (x) | $9.61 | $9.71 | ||||||
Total return (%) (r)(s)(t)(x) | 2.62 | 0.78 | (c) | |||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||
Expenses before expense reductions (f) | 0.77 | 0.78 | (c) | |||||
Expenses after expense reductions (f) | 0.58 | 0.57 | (c) | |||||
Net investment income (loss) | 3.72 | 3.85 | (c) | |||||
Portfolio turnover | 23 | 17 | ||||||
Net assets at end of period (000 omitted) | $9,261 | $6,437 | ||||||
Year ended | ||||||||
Class R6 | 3/31/18 (i) | |||||||
Net asset value, beginning of period | $9.81 | |||||||
Income (loss) from investment operations | ||||||||
Net investment income (loss) (d) | $0.24 | |||||||
Net realized and unrealized gain (loss) | (0.21 | ) | ||||||
Total from investment operations | $0.03 | |||||||
Less distributions declared to shareholders | ||||||||
From net investment income | $(0.23 | ) | ||||||
Net asset value, end of period (x) | $9.61 | |||||||
Total return (%) (r)(s)(t)(x) | 0.35 | (n) | ||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||
Expenses before expense reductions (f) | 0.76 | (a) | ||||||
Expenses after expense reductions (f) | 0.52 | (a) | ||||||
Net investment income (loss) | 3.79 | (a) | ||||||
Portfolio turnover | 23 | |||||||
Net assets at end of period (000 omitted) | $961 |
(a) | Annualized. |
(c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(i) | For the period from the class inception, April 1, 2016 (Class I) and August 1, 2017 (Class R6), through the stated period end. |
(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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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 past 5 years (or life of a particular share class, if shorter). Certain information reflects financial results for a single fund share. The total returns in the table represent the rate that 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.
Year ended | ||||||||||||||||||||
Class A | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | |||||||||||||||
Net asset value, beginning of period | $11.02 | $11.43 | $11.40 | $10.92 | $11.66 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.42 | $0.46 | (c) | $0.41 | $0.40 | $0.42 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.13 | ) | (0.46 | ) | 0.01 | 0.47 | (0.76 | ) | ||||||||||||
Total from investment operations | $0.29 | $0.00 | (w) | $0.42 | $0.87 | $(0.34 | ) | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.41 | ) | $(0.41 | ) | $(0.39 | ) | $(0.39 | ) | $(0.40 | ) | ||||||||||
Net asset value, end of period (x) | $10.90 | $11.02 | $11.43 | $11.40 | $10.92 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 2.60 | (0.04 | )(c) | 3.78 | 8.02 | (2.85 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 0.89 | 0.88 | (c) | 0.88 | 0.86 | 0.87 | ||||||||||||||
Expenses after expense reductions (f) | 0.86 | 0.85 | (c) | 0.85 | 0.84 | 0.85 | ||||||||||||||
Net investment income (loss) | 3.82 | 4.06 | (c) | 3.66 | 3.58 | 3.80 | ||||||||||||||
Portfolio turnover | 19 | 15 | 15 | 13 | 23 | |||||||||||||||
Net assets at end of period (000 omitted) | $202,967 | $207,001 | $226,552 | $229,134 | $232,263 | |||||||||||||||
Year ended | ||||||||||||||||||||
Class B | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | |||||||||||||||
Net asset value, beginning of period | $11.04 | $11.45 | $11.42 | $10.94 | $11.68 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.34 | $0.37 | (c) | $0.33 | $0.32 | $0.33 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.14 | ) | (0.46 | ) | 0.00 | (w) | 0.46 | (0.75 | ) | |||||||||||
Total from investment operations | $0.20 | $(0.09 | ) | $0.33 | $0.78 | $(0.42 | ) | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.32 | ) | $(0.32 | ) | $(0.30 | ) | $(0.30 | ) | $(0.32 | ) | ||||||||||
Net asset value, end of period (x) | $10.92 | $11.04 | $11.45 | $11.42 | $10.94 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 1.81 | (0.80 | )(c) | 2.98 | 7.18 | (3.59 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.64 | 1.63 | (c) | 1.63 | 1.61 | 1.62 | ||||||||||||||
Expenses after expense reductions (f) | 1.63 | 1.62 | (c) | 1.62 | 1.60 | 1.62 | ||||||||||||||
Net investment income (loss) | 3.06 | 3.29 | (c) | 2.88 | 2.81 | 3.02 | ||||||||||||||
Portfolio turnover | 19 | 15 | 15 | 13 | 23 | |||||||||||||||
Net assets at end of period (000 omitted) | $1,858 | $2,509 | $3,206 | $3,737 | $3,810 |
See Notes to Financial Statements
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Financial Highlights – continued
MFS MASSACHUSETTS MUNICIPAL BOND FUND – continued
Year ended | ||||||||
Class I | 3/31/18 | 3/31/17 (i) | ||||||
Net asset value, beginning of period | $9.65 | $10.00 | ||||||
Income (loss) from investment operations | ||||||||
Net investment income (loss) (d) | $0.39 | $0.42 | (c) | |||||
Net realized and unrealized gain (loss) | (0.12 | ) | (0.39 | ) | ||||
Total from investment operations | $0.27 | $0.03 | ||||||
Less distributions declared to shareholders | ||||||||
From net investment income | $(0.38 | ) | $(0.38 | ) | ||||
Net asset value, end of period (x) | $9.54 | $9.65 | ||||||
Total return (%) (r)(s)(t)(x) | 2.76 | 0.30 | (c) | |||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||
Expenses before expense reductions (f) | 0.64 | 0.64 | (c) | |||||
Expenses after expense reductions (f) | 0.63 | 0.63 | (c) | |||||
Net investment income (loss) | 4.00 | 4.30 | (c) | |||||
Portfolio turnover | 19 | 15 | ||||||
Net assets at end of period (000 omitted) | $49,523 | $23,470 | ||||||
Year ended | ||||||||
Class R6 | 3/31/18 (i) | |||||||
Net asset value, beginning of period | $9.77 | |||||||
Income (loss) from investment operations | ||||||||
Net investment income (loss) (d) | $0.24 | |||||||
Net realized and unrealized gain (loss) | (0.21 | ) | ||||||
Total from investment operations | $0.03 | |||||||
Less distributions declared to shareholders | ||||||||
From net investment income | $(0.26 | ) | ||||||
Net asset value, end of period (x) | $9.54 | |||||||
Total return (%) (r)(s)(t)(x) | 0.26 | (n) | ||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||
Expenses before expense reductions (f) | 0.58 | (a) | ||||||
Expenses after expense reductions (f) | 0.57 | (a) | ||||||
Net investment income (loss) | 3.85 | (a) | ||||||
Portfolio turnover | 19 | |||||||
Net assets at end of period (000 omitted) | $1,983 |
(a) | Annualized. |
(c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(i) | For the period from the class inception, April 1, 2016 (Class I) and August 1, 2017 (Class R6), through the stated period end. |
(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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(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.
Each 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 each fund’s Statement of Assets and Liabilities through the date that the financial statements were issued. Each fund invests primarily in municipal instruments which generally trade in the over-the-counter market. The value of municipal instruments can be affected by changes in their actual or perceived credit quality. The credit quality of, and the ability to pay principal and interest when due by, an issuer of a municipal instrument depends on the credit quality of the entity supporting the municipal instrument, how essential any services supported by the municipal instrument are, the sufficiency of any revenues or taxes that support the municipal instrument, and/or the willingness or ability of the appropriate government entity to approve any appropriations necessary to support the municipal instrument. Many municipal instruments are supported by insurance which typically guarantees the timely payment of all principal and interest due on the underlying municipal instrument. The value of a municipal instrument can be volatile and significantly affected by adverse tax changes or court rulings, legislative or political changes, changes in specific or general market and economic conditions in the region or state where the instrument is issued, and the financial condition of municipal issuers and of municipal instrument insurers of which there are a limited number. Also, because many municipal instruments are issued to finance similar projects, conditions in certain industries can significantly affect the funds and the overall municipal market. If the Internal Revenue Service determines an issuer of a municipal instrument has not complied with the applicable tax requirements, interest from the security could become taxable, the security could decline in value, and distributions made by the funds could be taxable to shareholders.
In March 2017, the FASB issued Accounting Standards Update 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20) – Premium Amortization on Purchased Callable Debt Securities (“ASU 2017-08”). For entities that hold callable debt securities at a premium, ASU 2017-08 requires that the premium be amortized to the earliest call date. ASU 2017-08 will be effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Management has evaluated the potential impacts of ASU 2017-08 and believes that adoption of ASU 2017-08 will not have a material effect on each fund’s overall financial position or its overall results of operations.
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, or similar 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 on their primary exchange as provided by a third-party pricing service. Futures contracts for which there were no trades that day for a particular position are generally valued at the closing bid quotation on their primary exchange as provided by a third-party pricing service. 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
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Board. If the adviser determines that reliable market quotations are not readily available, investments are valued at fair value as determined in good faith by the adviser in accordance with such procedures under the oversight of the Board of Trustees. Under each fund’s valuation policies and procedures, market quotations are not considered to be readily available for most types of debt instruments and floating rate loans and many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services. In addition, investments may be valued at fair value if the adviser determines that an investment’s value has been materially affected by events occurring after the close of the exchange or market on which the investment is principally traded (such as foreign exchange or market) and prior to the determination of each fund’s net asset value, or after the halting of trading of a specific security where trading does not resume prior to the close of the exchange or market on which the security is principally traded. The adviser generally relies on third-party pricing services or other information (such as the correlation with price movements of similar securities in the same or other markets; the type, cost and investment characteristics of the security; the business and financial condition of the issuer; and trading and other market data) to assist in determining whether to fair value and at what value to fair value an investment. The value of an investment for purposes of calculating each fund’s net asset value can differ depending on the source and method used to determine value. When fair valuation is used, the value of an investment used to determine each fund’s net asset value may differ from quoted or published prices for the same investment. There can be no assurance that each fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which each fund determines its net asset value per share.
Various inputs are used in determining the value of each fund’s assets or liabilities. These inputs are categorized into three broad levels. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Each fund’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes unobservable inputs, which may include the adviser’s own assumptions in determining the fair value of investments. The following is a summary of the levels used as of March 31, 2018 in valuing each fund’s assets or liabilities:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Alabama Fund | ||||||||||||||||
Financial Instruments | ||||||||||||||||
Municipal Bonds | $— | $58,111,694 | $— | $58,111,694 | ||||||||||||
Mutual Funds | 305,782 | — | — | 305,782 | ||||||||||||
Total | $305,782 | $58,111,694 | $— | $58,417,476 | ||||||||||||
Arkansas Fund | ||||||||||||||||
Financial Instruments | ||||||||||||||||
Municipal Bonds | $— | $158,422,356 | $— | $158,422,356 | ||||||||||||
Mutual Funds | 41,881 | — | — | 41,881 | ||||||||||||
Total | $41,881 | $158,422,356 | $— | $158,464,237 | ||||||||||||
California Fund | ||||||||||||||||
Financial Instruments | ||||||||||||||||
Municipal Bonds | $— | $364,451,661 | $— | $364,451,661 | ||||||||||||
Mutual Funds | 1,958,769 | — | — | 1,958,769 | ||||||||||||
Total | $1,958,769 | $364,451,661 | $— | $366,410,430 | ||||||||||||
Georgia Fund | ||||||||||||||||
Financial Instruments | ||||||||||||||||
Municipal Bonds | $— | $78,779,931 | $— | $78,779,931 | ||||||||||||
Mutual Funds | 670,895 | — | — | 670,895 | ||||||||||||
Total | $670,895 | $78,779,931 | $— | $79,450,826 | ||||||||||||
Maryland Fund | ||||||||||||||||
Financial Instruments | ||||||||||||||||
Municipal Bonds | $— | $86,661,791 | $— | $86,661,791 | ||||||||||||
Mutual Funds | 2,279,833 | — | — | 2,279,833 | ||||||||||||
Total | $2,279,833 | $86,661,791 | $— | $88,941,624 |
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Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Massachusetts Fund | ||||||||||||||||
Financial Instruments | ||||||||||||||||
Municipal Bonds | $— | $252,760,741 | $— | $252,760,741 | ||||||||||||
Mutual Funds | 932,789 | — | — | 932,789 | ||||||||||||
Total | $932,789 | $252,760,741 | $— | $253,693,530 |
For further information regarding security characteristics, see the Portfolio of Investments.
Derivatives – Certain funds 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 funds during the period were futures contracts. Depending on the type of derivative, the fund may exit a derivative position by entering into an offsetting transaction with a counterparty or exchange, negotiating an agreement with the derivative counterparty, or novating the position to a third party. At March 31, 2018, the funds 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 funds for the year ended March 31, 2018 as reported in the Statements of Operations:
Fund | Risk | Futures Contracts | ||
Arkansas Fund | Interest Rate | $83,845 | ||
California Fund | Interest Rate | 207,617 | ||
Georgia Fund | Interest Rate | 39,926 | ||
Maryland Fund | Interest Rate | 47,912 | ||
Massachusetts Fund | Interest Rate | 123,772 |
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, 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 specified 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 agreement 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. For cleared derivatives (e.g., futures contracts, cleared swaps, and exchange-traded options), margin requirements are set by the clearing broker and the clearing house and collateral, in the form of cash or securities, is posted by the fund directly with the clearing broker. Collateral terms are counterparty agreement specific for uncleared derivatives (e.g., forward foreign currency exchange contracts, uncleared swap agreements, and uncleared options) and collateral, in the form of cash and securities, is held in segregated accounts with the fund’s custodian in connection with these agreements. 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 counterparty-specific agreement and one amount is posted from one party to the other to collateralize such obligations. Cash that has been segregated or delivered 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 for uncleared derivatives and/or deposits with brokers for cleared derivatives. Securities pledged as collateral or margin for the same purpose, if any, are noted in the Portfolio of Investments. The funds may be required to make payments of interest on uncovered collateral or margin obligations with the broker. Any such payments are included in “Miscellaneous” expense in the Statements of Operations.
Futures Contracts – Certain funds 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.
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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.
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. The amount of the credit, for the year ended March 31, 2018, is shown as a reduction of total expenses in the Statements of Operations.
Tax Matters and Distributions – Each fund intends to qualify as a regulated investment company, as defined under Subchapter M of the Internal Revenue Code, and to distribute all of its taxable and tax-exempt income, including realized capital gains. As a result, no provision for federal income tax is required. Each fund’s federal tax returns, when filed, will remain subject to examination by the Internal Revenue Service for a three year period. Management has analyzed each fund’s tax positions taken on federal and state tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
Distributions to shareholders are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. Certain capital accounts in the financial statements are periodically adjusted for permanent differences in order to reflect their tax character. These adjustments have no impact on net assets or net asset value per share. Temporary differences which arise from recognizing certain items of income, expense, gain or loss in different periods for financial statement and tax purposes will reverse at some time in the future. Distributions in excess of net investment income or net realized gains are temporary overdistributions for financial statement purposes resulting from differences in the recognition or classification of income or distributions for financial statement and tax purposes.
Book/tax differences primarily relate to expiration of capital loss carryforwards and amortization and accretion of debt securities, as applicable to each fund.
The tax character of distributions declared to shareholders for the last two fiscal years is as follows:
Year ended 3/31/18 | Alabama Fund | Arkansas Fund | California Fund | Georgia Fund | Maryland Fund | Massachusetts Fund | ||||||||||||||||||
Ordinary income (including any short-term capital gains) | $22,206 | $26,508 | $238,000 | $5,087 | $27,500 | $264,135 | ||||||||||||||||||
Tax-exempt income | 2,011,134 | 4,914,199 | 12,224,734 | 2,361,474 | 2,989,366 | 8,653,926 | ||||||||||||||||||
Total distributions | $2,033,340 | $4,940,707 | $12,462,734 | $2,366,561 | $3,016,866 | $8,918,061 | ||||||||||||||||||
Year ended 3/31/17 | Alabama Fund | Arkansas Fund | California Fund | Georgia Fund | Maryland Fund | Massachusetts Fund | ||||||||||||||||||
Ordinary income (including any short-term capital gains) | $132,014 | $243,704 | $97,392 | $596 | $152,555 | $6,322 | ||||||||||||||||||
Tax-exempt income | 1,935,370 | 5,017,341 | 11,167,903 | 2,043,425 | 2,856,981 | 8,482,288 | ||||||||||||||||||
Total distributions | $2,067,384 | $5,261,045 | $11,265,295 | $2,044,021 | $3,009,536 | $8,488,610 |
The federal tax cost and the tax basis components of distributable earnings were as follows:
As of 3/31/18 | Alabama Fund | Arkansas Fund | California Fund | Georgia Fund | Maryland Fund | Massachusetts Fund | ||||||||||||||||||
Cost of investments | $56,789,902 | $154,568,977 | $349,520,318 | $77,428,460 | $86,317,201 | $242,025,675 | ||||||||||||||||||
Gross appreciation | 1,973,765 | 4,859,956 | 18,406,898 | 2,444,381 | 3,121,201 | 12,977,925 | ||||||||||||||||||
Gross depreciation | (346,191 | ) | (964,696 | ) | (1,516,786 | ) | (422,015 | ) | (496,778 | ) | (1,310,070 | ) | ||||||||||||
Net unrealized appreciation (depreciation) | $1,627,574 | $3,895,260 | $16,890,112 | $2,022,366 | $2,624,423 | $11,667,855 | ||||||||||||||||||
Undistributed ordinary income | 20,750 | 160,700 | 244,503 | 19,398 | 9,167 | 500,500 | ||||||||||||||||||
Undistributed tax-exempt income | 171,865 | 333,015 | 822,382 | 169,113 | 428,595 | 251,796 | ||||||||||||||||||
Capital loss carryforwards | (1,696,913 | ) | (6,547,962 | ) | (7,827,792 | ) | (1,831,492 | ) | (3,365,579 | ) | (5,586,808 | ) | ||||||||||||
Other temporary differences | (171,200 | ) | (440,255 | ) | (1,065,847 | ) | (210,847 | ) | (255,025 | ) | (748,344 | ) |
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Notes to Financial Statements – continued
Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized for fund fiscal years beginning after March 31, 2011 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses (“post-enactment losses”). Previously, net capital losses were carried forward for eight years and treated as short-term losses (“pre-enactment losses”). As a transition rule, the Act requires that all post-enactment net capital losses be used before pre-enactment net capital losses.
As of March 31, 2018, 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 | ||||||||||||||||||
3/31/19 | $(674,377 | ) | $(197,659 | ) | $(2,804,636 | ) | $(266,409 | ) | $(579,646 | ) | $(488,562 | ) | ||||||||||||
Post-enactment losses which are characterized as follows: | Alabama Fund | Arkansas Fund | California Fund | Georgia Fund | Maryland Fund | Massachusetts Fund | ||||||||||||||||||
Short-Term | $(655,382 | ) | $(2,459,688 | ) | $(3,252,579 | ) | $(1,091,026 | ) | $(1,715,975 | ) | $(4,464,076 | ) | ||||||||||||
Long-Term | (367,154 | ) | (3,890,615 | ) | (1,770,577 | ) | (474,057 | ) | (1,069,958 | ) | (634,170 | ) | ||||||||||||
Total | $(1,022,536 | ) | $(6,350,303 | ) | $(5,023,156 | ) | $(1,565,083 | ) | $(2,785,933 | ) | $(5,098,246 | ) |
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. Effective April 23, 2018, Class C shares will convert to Class A shares approximately ten 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:
From net investment income
Alabama Fund | Arkansas Fund | California Fund | ||||||||||
Year Ended 3/31/18 (i) | Year Ended 3/31/17 | Year Ended 3/31/18 (i) | Year Ended 3/31/17 | Year Ended 3/31/18 (i) | Year Ended 3/31/17 | |||||||
Class A | $1,772,980 | $1,958,819 | $4,433,561 | $4,912,832 | $9,605,732 | $9,255,812 | ||||||
Class B | 9,435 | 15,243 | 119,869 | 155,180 | 67,932 | 81,828 | ||||||
Class C | — | — | — | — | 886,006 | 925,440 | ||||||
Class I | 243,364 | 93,322 | 382,264 | 193,033 | 1,871,451 | 1,002,215 | ||||||
Class R6 | 7,561 | — | 5,013 | — | 31,613 | — | ||||||
Total | $2,033,340 | $2,067,384 | $4,940,707 | $5,261,045 | $12,462,734 | $11,265,295 |
Georgia Fund | Maryland Fund | Massachusetts Fund | ||||||||||
Year Ended 3/31/18 (i) | Year Ended 3/31/17 | Year Ended 3/31/18 (i) | Year Ended 3/31/17 | Year Ended 3/31/18 (i) | Year Ended 3/31/17 | |||||||
Class A | $2,014,669 | $1,879,136 | $2,690,232 | $2,886,657 | $7,600,441 | $7,962,405 | ||||||
Class B | 19,673 | 28,679 | 40,787 | 49,817 | 63,017 | 83,331 | ||||||
Class I | 301,851 | 136,206 | 279,825 | 73,062 | 1,242,188 | 442,874 | ||||||
Class R6 | 30,368 | — | 6,022 | — | 12,415 | — | ||||||
Total | $2,366,561 | $2,044,021 | $3,016,866 | $3,009,536 | $8,918,061 | $8,488,610 |
(i) | For the period from the inception of Class R6, August 1, 2017, through the stated period end. |
(3) | Transactions with Affiliates |
Investment Adviser – Each fund has an investment advisory agreement with MFS to provide overall investment management and related administrative services and facilities to each fund. The management fee is computed daily and paid monthly at an annual rate of 0.45% of each fund’s average daily net assets.
MFS has agreed in writing to reduce its management fee by a specified amount if certain MFS mutual fund assets exceed thresholds agreed to by MFS and the funds’ Board of Trustees. For the year ended March 31, 2018, 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 | |||||
$5,070 | $13,636 | $29,691 | $6,388 | $7,377 | $20,167 |
The management fee incurred for the year ended March 31, 2018 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 – 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 | 0.90% | 0.90% | 0.83% | |||||||||
Class B | 1.65% | 1.65% | 1.58% | |||||||||
Class I | 0.65% | 0.65% | 0.58% | |||||||||
Class R6 | 0.59% | 0.60% | 0.53% |
These written agreements will continue until modified by the fund’s Board of Trustees, but such agreements will continue at least until July 31, 2018. For the year ended March 31, 2018, these reductions amounted to $114,090 for the Alabama Fund, $103,811 for the Georgia Fund, and $159,838 for the Maryland Fund and are included in the reduction of total expenses in the Statements of Operations.
Distributor – MFS Fund Distributors, Inc. (MFD), a wholly-owned subsidiary of MFS, as distributor, received the following amounts for the year ended March 31, 2018, 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 | |||||
$4,472 | $11,433 | $17,698 | $8,295 | $5,184 | $12,112 |
The Board of Trustees has adopted a distribution plan for certain share classes pursuant to Rule 12b-1 of the Investment Company Act of 1940.
Each fund’s distribution plan provides that each fund will pay MFD for services provided by MFD and financial intermediaries in connection with the distribution and servicing of certain share classes. One component of the plan is a distribution fee paid to MFD and another component of the plan is a service fee paid to MFD. MFD may subsequently pay all, or a portion, of the distribution and/or service fees to financial intermediaries.
Distribution Plan Fee Table:
Class A | ||||||||||||||||||||
Distribution Fee Rate (d) | Service Fee Rate (d) | Total Distribution Plan (d) | Annual Effective Rate (e) | Distribution and Service Fee | ||||||||||||||||
Alabama Fund | — | 0.25% | 0.25% | 0.25% | $133,832 | |||||||||||||||
Arkansas Fund | — | 0.25% | 0.25% | 0.10% | 365,898 | |||||||||||||||
California Fund | — | 0.25% | 0.25% | 0.10% | 672,114 | |||||||||||||||
Georgia Fund | — | 0.25% | 0.25% | 0.25% | 164,421 | |||||||||||||||
Maryland Fund | — | 0.25% | 0.25% | 0.24% | 198,176 | |||||||||||||||
Massachusetts Fund | — | 0.25% | 0.25% | 0.23% | 519,174 | |||||||||||||||
Class B | ||||||||||||||||||||
Distribution Fee Rate (d) | Service Fee Rate (d) | Total Distribution Plan (d) | Annual Effective Rate (e) | Distribution and Service Fee | ||||||||||||||||
Alabama Fund | 0.75% | 0.25% | 1.00% | 1.00% | $3,675 | |||||||||||||||
Arkansas Fund | 0.75% | 0.25% | 1.00% | 0.85% | 52,791 | |||||||||||||||
California Fund | 0.75% | 0.25% | 1.00% | 0.86% | 24,014 | |||||||||||||||
Georgia Fund | 0.75% | 0.25% | 1.00% | 1.00% | 8,409 | |||||||||||||||
Maryland Fund | 0.75% | 0.25% | 1.00% | 1.00% | 15,463 | |||||||||||||||
Massachusetts Fund | 0.75% | 0.25% | 1.00% | 1.00% | 21,772 | |||||||||||||||
Class C | ||||||||||||||||||||
Distribution Fee Rate (d) | Service Fee Rate (d) | Total Distribution Plan (d) | Annual Effective Rate (e) | Distribution and Service Fee | ||||||||||||||||
California Fund | 0.75% | 0.25% | 1.00% | 1.00% | $330,776 |
Alabama Fund | Arkansas Fund | California Fund | Georgia Fund | Maryland Fund | Massachusetts Fund | |||||||||||||||||||
Total Distribution and Service Fees | $137,507 | $418,689 | $1,026,904 | $172,830 | $213,639 | $540,946 |
(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. |
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(e) | The annual effective rates represent actual fees incurred under the distribution plan for the year ended March 31, 2018 based on each class’s average daily net assets. MFD has voluntarily agreed to rebate a portion of each class’s 0.25% service fee attributable to accounts for which MFD retains the 0.25% service fee except for accounts attributable to MFS or its affiliates’ seed money. For the year ended March 31, 2018, 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 | $1,406 | $378 | $4,181 | $464 | $6,378 | $48,865 | ||||||||||||||||||
Class B | — | — | 18 | — | — | 7 | ||||||||||||||||||
Class C | N/A | N/A | 3 | 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, 2018. For the year ended March 31, 2018, this reduction amounted to $219,540 and is included in the reduction of total expenses in the Statements of Operations. Prior to July 28, 2017, the service fee rate attributable to Class B shares within the first year of purchase was 0.25% and the service fee rate attributable to all other Class B shares was reduced by MFD to 0.10% under a written agreement that terminated on July 27, 2017. For the period April 1, 2017 to July 27, 2017, this reduction amounted to $2,718 and is included in the reduction of total expenses in the Statements of Operations. Effective July 28, 2017, MFD has agreed in writing to reduce the Class B service fee rate to 0.10% for all 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, 2018. For the period July 28, 2017 to March 31, 2018, this reduction amounted to $5,164 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 until at least July 31, 2018. For the year ended March 31, 2018, this reduction amounted to $403,270 and is included in the reduction of total expenses in the Statements of Operations. Prior to July 28, 2017, the service fee rate attributable to Class B shares within the first year of purchase was 0.25% and the service fee rate attributable to all other Class B shares was reduced by MFD to 0.10% under a written agreement that terminated on July 27, 2017. For the period April 1, 2017 to July 27, 2017, this reduction amounted to $1,063 and is included in the reduction of total expenses in the Statements of Operations. Effective July 28, 2017, MFD has agreed in writing to reduce the Class B service fee rate to 0.10% for all 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, 2018. For the period July 28, 2017 to March 31, 2018, this reduction amounted to $2,356 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 year ended March 31, 2018, were as follows:
CDSC Imposed | Alabama Fund | Arkansas Fund | California Fund | Georgia Fund | Maryland Fund | Massachusetts Fund | ||||||||||||||||||
Class A | $1,998 | $2,498 | $7,502 | $2,843 | $1,796 | $6,344 | ||||||||||||||||||
Class B | 1,502 | 2,413 | 3,131 | 959 | 902 | 4,856 | ||||||||||||||||||
Class C | N/A | N/A | 5,385 | N/A | N/A | N/A |
Shareholder Servicing Agent – MFS Service Center, Inc. (MFSC), a wholly-owned subsidiary of MFS, receives a fee from each fund for its services as shareholder servicing agent calculated as a percentage of the average daily net assets of each fund as determined periodically under the supervision of the funds’ Board of Trustees. For the year ended March 31, 2018, 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 | $3,452 | $6,842 | $21,694 | $4,474 | $13,033 | $22,350 | ||||||||||||||||||
Percentage of average daily net assets | 0.0057% | 0.0042% | 0.0061% | 0.0058% | 0.0147% | 0.0092% |
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. Class R6 shares do not incur sub-accounting fees. For the year ended March 31, 2018, 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 | |||||
$46,013 | $131,480 | $274,128 | $50,280 | $60,314 | $179,520 |
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 year ended March 31, 2018 was equivalent to the following annual effective rates of each fund’s average daily net assets:
Alabama Fund | Arkansas Fund | California Fund | Georgia Fund | Maryland Fund | Massachusetts Fund | |||||||||||||||||||
Percentage of average daily net assets | 0.0315% | 0.0215% | 0.0183% | 0.0282% | 0.0265% | 0.0196% |
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Notes to Financial Statements – continued
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 year ended March 31, 2018 and were as follows:
Alabama Fund | Arkansas Fund | California Fund | Georgia Fund | Maryland Fund | Massachusetts Fund | |||||
$350 | $378 | $900 | $378 | $759 | $774 |
The liability for deferred retirement benefits payable to certain independent Trustees under the DB plan amounted to the following at March 31, 2018, and is included in “Payable for independent Trustees’ compensation” in the Statements of Assets and Liabilities:
Alabama Fund | Arkansas Fund | California Fund | Georgia Fund | Maryland Fund | Massachusetts Fund | |||||
$1,645 | $1,577 | $6,437 | $1,861 | $3,907 | $3,876 |
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 year ended March 31, 2018, the fee paid by each fund under this agreement amounted to the following and is included in “Miscellaneous” expense in the Statements of Operations:
Alabama Fund | Arkansas Fund | California Fund | Georgia Fund | Maryland Fund | Massachusetts Fund | |||||
$109 | $285 | $581 | $130 | $160 | $409 |
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. This money market fund does not pay a management fee to MFS.
On June 29, 2016, MFS redeemed the following fund shares:
Fund | Class | Shares | Amount | |||||||||
Alabama Fund | Class I | 5,030 | $51,055 | |||||||||
Arkansas Fund | Class I | 5,024 | 50,992 | |||||||||
California Fund | Class I | 5,022 | 51,321 | |||||||||
Georgia Fund | Class I | 5,027 | 51,074 | |||||||||
Maryland Fund | Class I | 5,031 | 51,066 | |||||||||
Massachusetts Fund | Class I | 5,031 | 51,112 |
On July 31, 2017, MFS purchased the following fund shares as an initial investment in the class:
Fund | Class | Shares | Amount | |||||||||
Alabama Fund | Class R6 | 5,123 | $50,000 | |||||||||
Arkansas Fund | Class R6 | 5,112 | 50,000 | |||||||||
California Fund | Class R6 | 5,081 | 50,000 | |||||||||
Georgia Fund | Class R6 | 5,092 | 50,000 | |||||||||
Maryland Fund | Class R6 | 5,097 | 50,000 | |||||||||
Massachusetts Fund | Class R6 | 5,118 | 50,000 |
(4) | Portfolio Securities |
For the year ended March 31, 2018, 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 | $10,043,901 | $30,570,995 | $91,534,824 | $21,828,637 | $20,892,627 | $69,412,779 | ||||||||||||||||||
Sales | $10,324,175 | $27,815,119 | $52,505,984 | $9,039,746 | $19,686,274 | $43,916,355 |
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(5) | Shares of Beneficial Interest |
Each fund’s Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest. Transactions in fund shares were as follows:
Alabama Fund | Arkansas Fund | |||||||||||||||||||||||||||||||
Year ended 3/31/18 (i) | Year ended 3/31/17 | Year ended 3/31/18 (i) | Year ended 3/31/17 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | ||||||||||||||||||||||||||||||||
Class A | 809,769 | $8,266,064 | 1,202,064 | $12,518,769 | 1,393,307 | $13,649,486 | 2,394,543 | $23,780,968 | ||||||||||||||||||||||||
Class B | 2,841 | 29,125 | 6,066 | 63,913 | 662 | 6,513 | 16,605 | 166,391 | ||||||||||||||||||||||||
Class I | 360,414 | 3,491,749 | 699,676 | 6,860,945 | 630,344 | 6,098,825 | 1,278,644 | 12,616,997 | ||||||||||||||||||||||||
Class R6 | 133,560 | 1,276,761 | — | — | 84,577 | 811,251 | — | — | ||||||||||||||||||||||||
1,306,584 | $13,063,699 | 1,907,806 | $19,443,627 | 2,108,890 | $20,566,075 | 3,689,792 | $36,564,356 | |||||||||||||||||||||||||
Shares issued to shareholders in reinvestment of distributions | ||||||||||||||||||||||||||||||||
Class A | 151,336 | $1,538,485 | 162,468 | $1,679,790 | 419,904 | $4,104,584 | 454,081 | $4,515,454 | ||||||||||||||||||||||||
Class B | 785 | 7,988 | 1,272 | 13,171 | 11,890 | 116,380 | 15,208 | 151,413 | ||||||||||||||||||||||||
Class I | 19,041 | 184,477 | 5,829 | 56,795 | 29,232 | 283,547 | 11,642 | 114,074 | ||||||||||||||||||||||||
Class R6 | 791 | 7,561 | — | — | 522 | 5,013 | — | — | ||||||||||||||||||||||||
171,953 | $1,738,511 | 169,569 | $1,749,756 | 461,548 | $4,509,524 | 480,931 | $4,780,941 | |||||||||||||||||||||||||
Shares reacquired | ||||||||||||||||||||||||||||||||
Class A | (1,202,847 | ) | $(12,233,659 | ) | (1,088,170 | ) | $(11,164,502 | ) | (2,080,752 | ) | $(20,333,255 | ) | (3,793,119 | ) | $(37,545,068 | ) | ||||||||||||||||
Class B | (19,552 | ) | (199,398 | ) | (19,663 | ) | (203,951 | ) | (180,778 | ) | (1,768,724 | ) | (100,962 | ) | (1,002,478 | ) | ||||||||||||||||
Class I | (266,168 | ) | (2,563,760 | ) | (101,315 | ) | (981,606 | ) | (336,986 | ) | (3,260,316 | ) | (183,473 | ) | (1,792,755 | ) | ||||||||||||||||
Class R6 | (927 | ) | (8,839 | ) | — | — | (5,148 | ) | (49,232 | ) | — | — | ||||||||||||||||||||
(1,489,494 | ) | $(15,005,656 | ) | (1,209,148 | ) | $(12,350,059 | ) | (2,603,664 | ) | $(25,411,527 | ) | (4,077,554 | ) | $(40,340,301 | ) | |||||||||||||||||
Net change | ||||||||||||||||||||||||||||||||
Class A | (241,742 | ) | $(2,429,110 | ) | 276,362 | $3,034,057 | (267,541 | ) | $(2,579,185 | ) | (944,495 | ) | $(9,248,646 | ) | ||||||||||||||||||
Class B | (15,926 | ) | (162,285 | ) | (12,325 | ) | (126,867 | ) | (168,226 | ) | (1,645,831 | ) | (69,149 | ) | (684,674 | ) | ||||||||||||||||
Class I | 113,287 | 1,112,466 | 604,190 | 5,936,134 | 322,590 | 3,122,056 | 1,106,813 | 10,938,316 | ||||||||||||||||||||||||
Class R6 | 133,424 | 1,275,483 | — | — | 79,951 | 767,032 | — | — | ||||||||||||||||||||||||
(10,957 | ) | $(203,446 | ) | 868,227 | $8,843,324 | (33,226 | ) | $(335,928 | ) | 93,169 | $1,004,996 | |||||||||||||||||||||
California Fund | Georgia Fund | |||||||||||||||||||||||||||||||
Year ended 3/31/18 (i) | Year ended 3/31/17 | Year ended 3/31/18 (i) | Year ended 3/31/17 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | ||||||||||||||||||||||||||||||||
Class A | 8,237,637 | $49,705,465 | 8,748,031 | $53,199,960 | 1,468,090 | $15,790,486 | 1,263,150 | $13,785,744 | ||||||||||||||||||||||||
Class B | 18,531 | 111,865 | 77,190 | 478,408 | 2,221 | 23,684 | 10,899 | 118,935 | ||||||||||||||||||||||||
Class C | 822,298 | 4,978,525 | 1,131,193 | 6,982,755 | — | — | — | — | ||||||||||||||||||||||||
Class I | 3,155,280 | 30,933,095 | 5,871,251 | 58,259,540 | 728,282 | 7,105,132 | 919,939 | 9,121,055 | ||||||||||||||||||||||||
Class R6 | 630,765 | 6,092,361 | — | — | 630,434 | 6,053,206 | — | — | ||||||||||||||||||||||||
12,864,511 | $91,821,311 | 15,827,665 | $118,920,663 | 2,829,027 | $28,972,508 | 2,193,988 | $23,025,734 | |||||||||||||||||||||||||
Shares issued to shareholders in reinvestment of distributions | ||||||||||||||||||||||||||||||||
Class A | 1,402,632 | $8,436,925 | 1,310,447 | $7,978,939 | 173,576 | $1,863,233 | 154,931 | $1,689,184 | ||||||||||||||||||||||||
Class B | 10,639 | 64,039 | 12,414 | 75,598 | 1,575 | 16,994 | 2,318 | 25,389 | ||||||||||||||||||||||||
Class C | 130,437 | 787,456 | 127,649 | 779,337 | — | — | — | — | ||||||||||||||||||||||||
Class I | 118,741 | 1,162,064 | 42,757 | 420,130 | 25,137 | 244,895 | 9,750 | 95,551 | ||||||||||||||||||||||||
Class R6 | 3,275 | 31,613 | — | — | 3,166 | 30,368 | — | — | ||||||||||||||||||||||||
1,665,724 | $10,482,097 | 1,493,267 | $9,254,004 | 203,454 | $2,155,490 | 166,999 | $1,810,124 |
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Notes to Financial Statements – continued
California Fund – continued | Georgia Fund – continued | |||||||||||||||||||||||||||||||
Year ended 3/31/18 (i) | Year ended 3/31/17 | Year ended 3/31/18 (i) | Year ended 3/31/17 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares reacquired | ||||||||||||||||||||||||||||||||
Class A | (5,929,975 | ) | $(35,649,046 | ) | (13,680,386 | ) | $(83,297,518 | ) | (1,146,389 | ) | $(12,297,574 | ) | (1,224,697 | ) | $(13,368,022 | ) | ||||||||||||||||
Class B | (156,434 | ) | (940,374 | ) | (150,118 | ) | (904,953 | ) | (53,913 | ) | (580,193 | ) | (27,279 | ) | (297,686 | ) | ||||||||||||||||
Class C | (1,305,709 | ) | (7,905,042 | ) | (1,047,074 | ) | (6,306,663 | ) | — | — | — | — | ||||||||||||||||||||
Class I | (1,800,648 | ) | (17,539,480 | ) | (1,542,540 | ) | (15,004,661 | ) | (812,325 | ) | (7,835,695 | ) | (165,401 | ) | (1,619,593 | ) | ||||||||||||||||
Class R6 | (13,494 | ) | (130,140 | ) | — | — | (10,026 | ) | (96,150 | ) | — | — | ||||||||||||||||||||
(9,206,260 | ) | $(62,164,082 | ) | (16,420,118 | ) | $(105,513,795 | ) | (2,022,653 | ) | $(20,809,612 | ) | (1,417,377 | ) | $(15,285,301 | ) | |||||||||||||||||
Net change | ||||||||||||||||||||||||||||||||
Class A | 3,710,294 | $22,493,344 | (3,621,908 | ) | $(22,118,619 | ) | 495,277 | $5,356,145 | 193,384 | $2,106,906 | ||||||||||||||||||||||
Class B | (127,264 | ) | (764,470 | ) | (60,514 | ) | (350,947 | ) | (50,117 | ) | (539,515 | ) | (14,062 | ) | (153,362 | ) | ||||||||||||||||
Class C | (352,974 | ) | (2,139,061 | ) | 211,768 | 1,455,429 | — | — | — | — | ||||||||||||||||||||||
Class I | 1,473,373 | 14,555,679 | 4,371,468 | 43,675,009 | (58,906 | ) | (485,668 | ) | 764,288 | 7,597,013 | ||||||||||||||||||||||
Class R6 | 620,546 | 5,993,834 | — | — | 623,574 | 5,987,424 | — | — | ||||||||||||||||||||||||
5,323,975 | $40,139,326 | 900,814 | $22,660,872 | 1,009,828 | $10,318,386 | 943,610 | $9,550,557 | |||||||||||||||||||||||||
Maryland Fund | Massachusetts Fund | |||||||||||||||||||||||||||||||
Year ended 3/31/18 (i) | Year ended 3/31/17 | Year ended 3/31/18 (i) | Year ended 3/31/17 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | ||||||||||||||||||||||||||||||||
Class A | 772,578 | $8,329,528 | 1,500,986 | $16,370,710 | 3,212,751 | $35,505,829 | 3,060,263 | $34,447,208 | ||||||||||||||||||||||||
Class B | 14,138 | 153,439 | 8,889 | 99,358 | 12,809 | 142,691 | 10,371 | 117,463 | ||||||||||||||||||||||||
Class I | 591,563 | 5,744,878 | 727,713 | 7,126,685 | 3,690,665 | 35,539,210 | 2,712,107 | 26,716,998 | ||||||||||||||||||||||||
Class R6 | 100,011 | 962,936 | — | — | 213,149 | 2,037,209 | — | — | ||||||||||||||||||||||||
1,478,290 | $15,190,781 | 2,237,588 | $23,596,753 | 7,129,374 | $73,224,939 | 5,782,741 | $61,281,669 | |||||||||||||||||||||||||
Shares issued to shareholders in reinvestment of distributions | ||||||||||||||||||||||||||||||||
Class A | 203,713 | $2,201,139 | 213,763 | $2,345,726 | 596,855 | $6,606,225 | 605,516 | $6,827,590 | ||||||||||||||||||||||||
Class B | 3,415 | 36,891 | 3,980 | 43,707 | 4,929 | 54,684 | 6,577 | 74,328 | ||||||||||||||||||||||||
Class I | 23,617 | 230,054 | 4,585 | 44,922 | 98,808 | 955,755 | 25,150 | 245,651 | ||||||||||||||||||||||||
Class R6 | 626 | 6,022 | — | — | 1,300 | 12,413 | — | — | ||||||||||||||||||||||||
231,371 | $2,474,106 | 222,328 | $2,434,355 | 701,892 | $7,629,077 | 637,243 | $7,147,569 | |||||||||||||||||||||||||
Shares reacquired | ||||||||||||||||||||||||||||||||
Class A | (1,223,084 | ) | $(13,203,615 | ) | (1,647,823 | ) | $(17,882,772 | ) | (3,966,535 | ) | $(43,809,322 | ) | (4,714,104 | ) | $(52,832,375 | ) | ||||||||||||||||
Class B | (41,792 | ) | (450,918 | ) | (40,320 | ) | (440,084 | ) | (74,742 | ) | (830,470 | ) | (69,854 | ) | (783,967 | ) | ||||||||||||||||
Class I | (314,228 | ) | (3,049,210 | ) | (74,221 | ) | (724,964 | ) | (1,030,429 | ) | (9,944,303 | ) | (309,243 | ) | (3,003,137 | ) | ||||||||||||||||
Class R6 | (644 | ) | (6,184 | ) | — | — | (6,652 | ) | (63,614 | ) | — | — | ||||||||||||||||||||
(1,579,748 | ) | $(16,709,927 | ) | (1,762,364 | ) | $(19,047,820 | ) | (5,078,358 | ) | $(54,647,709 | ) | (5,093,201 | ) | $(56,619,479 | ) | |||||||||||||||||
Net change | ||||||||||||||||||||||||||||||||
Class A | (246,793 | ) | $(2,672,948 | ) | 66,926 | $833,664 | (156,929 | ) | $(1,697,268 | ) | (1,048,325 | ) | $(11,557,577 | ) | ||||||||||||||||||
Class B | (24,239 | ) | (260,588 | ) | (27,451 | ) | (297,019 | ) | (57,004 | ) | (633,095 | ) | (52,906 | ) | (592,176 | ) | ||||||||||||||||
Class I | 300,952 | 2,925,722 | 658,077 | 6,446,643 | 2,759,044 | 26,550,662 | 2,428,014 | 23,959,512 | ||||||||||||||||||||||||
Class R6 | 99,993 | 962,774 | — | — | 207,797 | 1,986,008 | — | — | ||||||||||||||||||||||||
129,913 | $954,960 | 697,552 | $6,983,288 | 2,752,908 | $26,206,307 | 1,326,783 | $11,809,759 |
(i) | For the period from the inception of Class R6, August 1, 2017, through the stated period end. |
Class T shares were not publicly available for sale during the period. Please see the fund’s prospectus for details.
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Notes to Financial Statements – continued
(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 year ended March 31, 2018, 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 | $399 | $977 | $2,139 | $484 | $549 | $1,488 | ||||||||||||||||||
Interest Expense | — | — | — | — | — | — |
(7) | Investments in Affiliated Issuers |
An affiliated issuer of a fund may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. For the purposes of this report, each fund assumes the MFS Institutional Money Market Portfolio to be an affiliated issuer. Each fund’s transactions in the MFS Institutional Money Market Portfolio for the year ended March 31, 2018, are as follows:
Affiliated Issuer - MFS Institutional Money Market Portfolio |
| |||||||||||||||||||
Beginning Shares/Par Amount | Acquisitions Shares/Par Amount | Dispositions Shares/Par Amount | Ending Shares/Par Amount | |||||||||||||||||
Alabama Fund | 412,853 | 17,264,256 | (17,371,296 | ) | 305,813 | |||||||||||||||
Arkansas Fund | 2,038,348 | 32,931,711 | (34,928,173 | ) | 41,886 | |||||||||||||||
California Fund | 4,874,981 | 109,748,434 | (112,664,450 | ) | 1,958,965 | |||||||||||||||
Georgia Fund | 1,787,639 | 25,375,165 | (26,491,843 | ) | 670,961 | |||||||||||||||
Maryland Fund | 628,060 | 28,321,739 | (26,669,738 | ) | 2,280,061 | |||||||||||||||
Massachusetts Fund | 1,735,298 | 80,993,669 | (81,796,085 | ) | 932,882 | |||||||||||||||
Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Capital Gain Distributions | Dividend Income | Ending Value | ||||||||||||||||
Alabama Fund | $(158 | ) | $48 | $— | $9,058 | $305,782 | ||||||||||||||
Arkansas Fund | (70 | ) | 76 | — | 20,569 | 41,881 | ||||||||||||||
California Fund | (2,441 | ) | 57 | — | 86,725 | 1,958,769 | ||||||||||||||
Georgia Fund | (381 | ) | 136 | — | 20,750 | 670,895 | ||||||||||||||
Maryland Fund | (216 | ) | 100 | — | 13,515 | 2,279,833 | ||||||||||||||
Massachusetts Fund | (739 | ) | 194 | — | 43,605 | 932,789 |
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of MFS Municipal Series Trust and the Shareholders of MFS Alabama Municipal Bond Fund, MFS Arkansas Municipal Bond Fund, MFS California Municipal Bond Fund, MFS Georgia Municipal Bond Fund, MFS Maryland Municipal Bond Fund and MFS Massachusetts Municipal Bond Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities of MFS Alabama Municipal Bond Fund, MFS Arkansas Municipal Bond Fund, MFS California Municipal Bond Fund, MFS Georgia Municipal Bond Fund, MFS Maryland Municipal Bond Fund and MFS Massachusetts Municipal Bond Fund (the “Funds”), including the portfolios of investments, as of March 31, 2018, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2018, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of March 31, 2018, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
May 16, 2018
We have served as the auditor of one or more of the MFS investment companies since 1924.
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TRUSTEES AND OFFICERS — IDENTIFICATION AND BACKGROUND
The Trustees and Officers of the Trust, as of May 1, 2018, are listed below, together with their principal occupations during the past five years. (Their titles may have varied during that period.) The address of each Trustee and Officer is 111 Huntington Avenue, Boston, Massachusetts 02199-7618.
Name, Age | Position(s) Held with Fund | Trustee/Officer Since (h) | Number of | Principal Occupations the Past Five Years | Other Directorships During the Past Five Years (j) | |||||
INTERESTED TRUSTEES | ||||||||||
Robert J. Manning (k) (age 54) | Trustee | February 2004 | 135 | Massachusetts Financial Services Company, Executive Chairman (since January 2017); Director; Chairman of the Board; Chief Executive Officer (until 2015); Co-Chief Executive Officer (2015-2016) | N/A | |||||
Robin A. Stelmach (k) (age 56) | Trustee | January 2014 | 135 | Massachusetts Financial Services Company, Vice Chair (since January 2017); Chief Operating Officer and Executive Vice President (until January 2017) | N/A | |||||
INDEPENDENT TRUSTEES | ||||||||||
John P. Kavanaugh (age 63) | Trustee and Chair of Trustees | January 2009 | 135 | Private investor | N/A | |||||
Steven E. Buller (age 66) | Trustee | February 2014 | 135 | Financial Accounting Standards Advisory Council, Chairman (2014-2015); Public Company Accounting Oversight Board, Standing Advisory Group, Member (until 2014); BlackRock, Inc. (investment management), Managing Director (until 2014), BlackRock Finco UK (investment management), Director (until 2014) | N/A | |||||
John A. Caroselli (age 63) | Trustee | March 2017 | 135 | JC Global Advisors, LLC (management consulting), President (since 2015); First Capital Corporation (commercial finance), Executive Vice President (until 2015) | N/A | |||||
Maureen R. Goldfarb (age 63) | Trustee | January 2009 | 135 | Private investor | N/A | |||||
Michael Hegarty (age 73) | Trustee | December 2004 | 135 | Private investor | Rouse Properties Inc., Director (until 2016); Capmark Financial Group Inc., Director (until 2015) | |||||
Clarence Otis, Jr. (age 62) | Trustee | March 2017 | 135 | Darden Restaurants, Inc., Chief Executive Officer (until 2014) | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director; Federal Reserve Bank of Atlanta, Director (until 2015) | |||||
Maryanne L. Roepke (age 62) | Trustee | May 2014 | 135 | American Century Investments (investment management), Senior Vice President and Chief Compliance Officer (until 2014) | N/A | |||||
Laurie J. Thomsen (age 60) | Trustee | March 2005 | 135 | Private investor | The Travelers Companies, Director; Dycom Industries, Inc., Director (since 2015) |
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Trustees and Officers – continued
Name, Age | Position(s) Held with Fund | Trustee/Officer Since (h) | Number of | Principal Occupations During the Past Five Years | ||||
OFFICERS | ||||||||
Christopher R. Bohane (k) (age 44) | Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Kino Clark (k) (age 49) | Assistant Treasurer | January 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
John W. Clark, Jr. (k) (age 51) | Assistant Treasurer | April 2017 | 135 | Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head – Treasurer’s Office (until February 2017) | ||||
Thomas H. Connors (k) (age 58) | Assistant Secretary and Assistant Clerk | September 2012 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
Ethan D. Corey (k) (age 54) | Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | ||||
David L. DiLorenzo (k) (age 49) | President | July 2005 | 135 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 50) | Secretary and Clerk | April 2017 | 135 | Massachusetts Financial Services Company, Executive Vice President and General Counsel (since March 2017); Harris Associates (investment management), General Counsel (from September 2015 to January 2017); Janus Capital Management LLC (investment management), Senior Vice President and General Counsel (until September 2015) | ||||
Brian E. Langenfeld (k) (age 45) | Assistant Secretary and Assistant Clerk | June 2006 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 47) | Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
Kasey L. Phillips (k) (age 47) | Assistant Treasurer | September 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 43) | Assistant Secretary and Assistant Clerk | October 2014 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Frank L. Tarantino (age 74) | Independent Senior Officer | June 2004 | 135 | Tarantino LLC (provider of compliance services), Principal | ||||
Richard S. Weitzel (k) (age 47) | Assistant Secretary and Assistant Clerk | October 2007 | 135 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | ||||
Martin J. Wolin (k) (age 50) | Chief Compliance Officer | July 2015 | 135 | Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer (since July 2015); Mercer (financial service provider), Chief Risk and Compliance Officer, North America and Latin America (until June 2015) | ||||
James O. Yost (k) (age 57) | Treasurer | September 1990 | 135 | Massachusetts Financial Services Company, Senior Vice President |
(h) | Date first appointed to serve as Trustee/officer of an MFS Fund. Each Trustee has served continuously since appointment unless indicated otherwise. For the period from December 15, 2004 until February 22, 2005, Mr. Manning served as Advisory Trustee. Prior to January 2012, Messrs. DiLorenzo and Yost served as Assistant Treasurers of the Funds. From January 2012 through December 2016, Messrs. DiLorenzo and Yost served as Treasurer and Deputy Treasurer of the Funds, respectively. |
(j) | Directorships or trusteeships of companies required to report to the Securities and Exchange Commission (i.e., “public companies”). |
(k) | “Interested person” of the Trust within the meaning of the Investment Company Act of 1940 (referred to as the 1940 Act), which is the principal federal law governing investment companies like the fund, as a result of a position with MFS. The address of MFS is 111 Huntington Avenue, Boston, Massachusetts 02199-7618. |
Each Trustee has been elected by shareholders and each Trustee and officer holds office until his or her successor is chosen and qualified or until his or her earlier death, resignation, retirement or removal. The Trust does not hold annual meetings for the purpose of electing Trustees, and Trustees are not elected for fixed terms. Under the terms of the Board’s retirement policy, an Independent Trustee shall retire at the end of the calendar year in which he or she reaches the earlier of 75 years of age or 15 years of service on the Board (or, in the case of any Independent Trustee who joined the Board prior to 2015, 20 years of service on the Board).
Messrs. Buller and Otis and Ms. Roepke are members of the Trust’s Audit Committee.
Each of the Interested Trustees and certain Officers hold comparable officer positions with certain affiliates of MFS.
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Trustees and Officers – continued
The Statement of Additional Information for a Fund includes further information about the Trustees and is available without charge upon request by calling 1-800-225-2606.
Investment Adviser Massachusetts Financial Services Company 111 Huntington Avenue Boston, MA 02199-7618 Distributor MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618 Portfolio Manager(s) Michael Dawson | Custodian JPMorgan Chase Bank, NA 4 Metrotech Center New York, NY 11245 Independent Registered Public Accounting Firm Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 |
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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 mfs.com/proxyvoting, 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 by August 31 of each year without charge by visiting mfs.com/proxyvoting, 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 at https://www.mfs.com/en-us/what-we-do/announcements.html or at mfs.com/openendfunds by choosing the fund’s name.
INFORMATION ABOUT FUND CONTRACTS AND LEGAL CLAIMS
Each fund has entered into contractual arrangements with an investment adviser, administrator, distributor, shareholder servicing agent, 529 program manager (if applicable), and custodian who each provide services to the fund. Unless expressly stated otherwise, shareholders are not parties to, or intended beneficiaries of these contractual arrangements, and these contractual arrangements are not intended to create any shareholder right to enforce them against the service providers or to seek any remedy under them against the service providers, either directly or on behalf of the fund.
Under the Trust’s By-Laws and Declaration of Trust, any claims asserted against or on behalf of the MFS Funds, including claims against Trustees and Officers, must be brought in state and federal courts located within the Commonwealth of Massachusetts.
FEDERAL TAX INFORMATION (unaudited)
The funds will notify shareholders of amounts for use in preparing 2018 income tax forms in January 2019. The following information is provided pursuant to provisions of the Internal Revenue Code.
Of the dividends paid from net investment income during the fiscal year, the following percentages were designated as exempt interest dividends for federal income tax purposes. If each fund has earned income on private activity bonds, a portion of the dividends paid may be considered a tax preference item for purposes of computing a shareholder’s alternative minimum tax.
Exempt Interest Dividends | ||||
Alabama Fund | 98.91% | |||
Arkansas Fund | 99.46% | |||
California Fund | 98.09% | |||
Georgia Fund | 99.79% | |||
Maryland Fund | 99.09% | |||
Massachusetts Fund | 97.04% |
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rev. 3/16
| WHAT DOES MFS DO WITH YOUR
| ![]() |
Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
What? | The types of personal information we collect and share depend on the product or service you have with us. This information can include:
• Social Security number and account balances • Account transactions and transaction history • Checking account information and wire transfer instructions
When you are no longer our customer, we continue to share your information as described in this notice. |
How? | All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons MFS chooses to share; and whether you can limit this sharing. |
Reasons we can share your personal information | Does MFS share? | Can you limit this sharing? | ||
For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus | Yes | No | ||
For our marketing purposes – to offer our products and services to you | No | We don’t share | ||
For joint marketing with other financial companies | No | We don’t share | ||
For our affiliates’ everyday business purposes – information about your transactions and experiences | No | We don’t share | ||
For our affiliates’ everyday business purposes – information about your creditworthiness | No | We don’t share | ||
For nonaffiliates to market to you | No | We don’t share |
Questions? | Call 800-225-2606 or go to mfs.com. |
93
Table of Contents
Page 2 |
Who we are | ||
Who is providing this notice? | MFS Funds, MFS Investment Management, MFS Institutional Advisors, Inc., and MFS Heritage Trust Company. |
What we do | ||
How does MFS protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include procedural, electronic, and physical safeguards for the protection of the personal information we collect about you. | |
How does MFS collect my personal information? | We collect your personal information, for example, when you
• open an account or provide account information • direct us to buy securities or direct us to sell your securities • make a wire transfer
We also collect your personal information from others, such as credit bureaus, affiliates, or other companies. | |
Why can’t I limit all sharing? | Federal law gives you the right to limit only
• sharing for affiliates’ everyday business purposes – information about your creditworthiness • affiliates from using your information to market to you • sharing for nonaffiliates to market to you
State laws and individual companies may give you additional rights to limit sharing. |
Definitions | ||
Affiliates | Companies related by common ownership or control. They can be financial and nonfinancial companies.
• MFS does not share personal information with affiliates, except for everyday business purposes as described on page one of this notice. | |
Nonaffiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies.
• MFS does not share with nonaffiliates so they can market to you. | |
Joint marketing | A formal agreement between nonaffiliated financial companies that together market financial products or services to you.
• MFS doesn’t jointly market. |
Other important information | ||
If you own an MFS product or receive an MFS service in the name of a third party such as a bank or broker-dealer, their privacy policy may apply to you instead of ours. |
94
Table of Contents
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.
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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.
P.O. Box 55824
Boston, MA 02205-5824
OVERNIGHT MAIL
MFS Service Center, Inc.
c/o DST Asset Manager Solutions, Inc.
30 Dan Road
Canton, MA 02021-2809
Table of Contents
Annual Report
March 31, 2018
MFS® Municipal Series Trust
For the states of:
Mississippi, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia
MSTB-ANN
Table of Contents
MFS® Municipal Series Trust
For the states of: Mississippi, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia
The report is prepared for the general information of shareholders. It is authorized for distribution to prospective investors only when preceded or accompanied by a current prospectus.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Table of Contents
LETTER FROM THE EXECUTIVE CHAIRMAN
Dear Shareholders:
Rising bond yields have led to a measurable uptick in market volatility — a departure from the low-volatility environment that prevailed for much of 2017. In recent months, against this backdrop, global markets have given back some of the strong gains recorded during 2017 and early 2018. Global economic growth remains robust, notwithstanding signs of a modest slowdown over the past few months, particularly in Europe.
Although the U.S. Federal Reserve continues to gradually raise interest rates and shrink its balance sheet, monetary policy remains accommodative around the world, with many central banks taking only tentative steps toward tighter policies. Newly enacted U.S. tax reforms have been welcomed by equity markets, while emerging market economies have benefited from a weaker U.S. dollar.
Around the world, inflation remains largely subdued, but tight labor markets and solid global demand have investors on the lookout for its potential resurgence. Increased U.S. protectionism is also a growing concern, as investors fear that trade friction could disrupt the synchronized rise in global growth.
At MFS®, we believe having a disciplined, long-term investment approach through a full market cycle is essential to capturing the best opportunities while also managing risk. In our view, such a strategy, along with the professional guidance of a financial advisor, will help you reach your investment objectives.
Respectfully,
Robert J. Manning
Executive Chairman
MFS Investment Management
May 16, 2018
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
Table of Contents
MFS Mississippi Municipal Bond Fund
Portfolio structure (i)
Top five industries (i) | ||||
Universities – Colleges | 21.6% | |||
State & Local Agencies | 16.7% | |||
General Obligations – General Purpose | 14.9% | |||
Healthcare Revenue – Hospitals | 11.8% | |||
General Obligations – Schools | 7.4% |
Composition including fixed income credit quality (a)(i) | ||||
AAA | 2.2% | |||
AA | 57.2% | |||
A | 20.8% | |||
BBB | 10.1% | |||
BB | 2.2% | |||
CC | 0.2% | |||
CC | 3.1% | |||
D | 0.4% | |||
Not Rated | 3.0% | |||
Cash & Cash Equivalents | 0.8% | |||
Portfolio facts (i) | ||||
Average Duration (d) | 6.0 | |||
Average Effective Maturity (m) | 12.5 yrs. |
Jurisdiction (i) | ||||
Mississippi | 74.7% | |||
Puerto Rico | 5.7% | |||
Massachusetts | 2.9% | |||
Guam | 2.6% | |||
California | 2.4% | |||
Illinois | 2.2% | |||
New York | 1.5% | |||
Colorado | 1.1% | |||
Michigan | 1.0% | |||
New Hampshire | 0.9% | |||
Wisconsin | 0.7% | |||
Virginia | 0.6% | |||
Texas | 0.5% | |||
Kentucky | 0.5% | |||
Tennessee | 0.3% | |||
Oklahoma | 0.3% | |||
South Carolina | 0.3% | |||
Washington | 0.3% | |||
Florida | 0.3% | |||
New Jersey | 0.2% | |||
Pennsylvania | 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 or may not have held all of these instruments on this date. The fund is not rated by these agencies. |
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value due to the interest rate move. |
(i) | For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining 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, they are treated as part of the equity portion of the portfolio.
Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Percentages are based on net assets as of March 31, 2018.
The portfolio is actively managed and current holdings may be different.
2
Table of Contents
Portfolio Composition – continued
MFS New York Municipal Bond Fund
Portfolio structure (i)
Top five industries (i) | ||||
Universities – Colleges | 16.5% | |||
State & Local Agencies | 12.7% | |||
Tax Assessment | 11.8% | |||
Healthcare Revenue – Hospitals | 9.9% | |||
Miscellaneous Revenue – Other | 6.9% |
Composition including fixed income credit quality (a)(i) | ||||
AAA | 8.4% | |||
AA | 29.8% | |||
A | 30.3% | |||
BBB | 17.9% | |||
BB | 2.0% | |||
B | 0.2% | |||
CCC | 0.3% | |||
CC | 0.3% | |||
C | 2.8% | |||
D | 0.9% | |||
Not Rated | 7.2% | |||
Cash & Cash Equivalents | (0.1)% | |||
Portfolio facts (i) | ||||
Average Duration (d) | 6.8 | |||
Average Effective Maturity (m) | 16.9 yrs. |
Jurisdiction (i) | ||||
New York | 84.4% | |||
Puerto Rico | 5.4% | |||
Guam | 2.5% | |||
Illinois | 1.8% | |||
Colorado | 1.1% | |||
Texas | 0.8% | |||
Florida | 0.8% | |||
Michigan | 0.8% | |||
Pennsylvania | 0.6% | |||
California | 0.4% | |||
Ohio | 0.3% | |||
New Jersey | 0.3% | |||
Washington | 0.3% | |||
Indiana | 0.2% | |||
Louisiana | 0.2% | |||
Wisconsin | 0.1% | |||
Mississippi | 0.1% | |||
New Hampshire (o) | 0.0% |
(a) | For all securities other than those specifically described below, ratings are assigned to underlying securities utilizing ratings from Moody’s, Fitch, and Standard & Poor’s rating agencies and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). Securities rated BBB or higher are considered investment grade. All ratings are subject to change. Not Rated includes fixed income securities, including fixed income futures contracts, which have not been rated by any rating agency. The fund may or may not have held all of these instruments on this date. The fund is not rated by these agencies. |
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value due to the interest rate move. |
(i) | For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining 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, they are treated as part of the equity portion of the portfolio.
Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
From time to time Cash & Cash Equivalents may be negative due to timing of cash receipts.
Percentages are based on net assets as of March 31, 2018.
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 | 20.9% | |||
Universities – Colleges | 19.1% | |||
State & Local Agencies | 13.8% | |||
Water & Sewer Utility Revenue | 10.8% | |||
Airport Revenue | 6.2% |
Composition including fixed income credit quality (a)(i) | ||||
AAA | 7.1% | |||
AA | 40.9% | |||
A | 29.2% | |||
BBB | 10.8% | |||
BB | 0.7% | |||
B | 0.2% | |||
CCC | 0.3% | |||
CC | 0.7% | |||
C | 2.2% | |||
D | 0.5% | |||
Not Rated | 6.7% | |||
Cash & Cash Equivalents | 0.7% | |||
Portfolio facts (i) | ||||
Average Duration (d) | 6.0 | |||
Average Effective Maturity (m) | 14.5 yrs. |
Jurisdiction (i) | ||||
North Carolina | 73.8% | |||
Puerto Rico | 5.8% | |||
California | 2.8% | |||
Guam | 2.2% | |||
Illinois | 2.2% | |||
Pennsylvania | 2.1% | |||
New York | 1.6% | |||
Virginia | 1.1% | |||
Colorado | 1.0% | |||
Tennessee | 0.9% | |||
Michigan | 0.8% | |||
Texas | 0.7% | |||
Massachusetts | 0.7% | |||
Wisconsin | 0.6% | |||
Florida | 0.6% | |||
New Hampshire | 0.5% | |||
Ohio | 0.4% | |||
New Jersey | 0.3% | |||
Oklahoma | 0.3% | |||
Indiana | 0.3% | |||
Washington | 0.2% | |||
Louisiana | 0.2% | |||
U.S. Virgin Islands | 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 or may not have held all of these instruments on this date. The fund is not rated by these agencies. |
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value due to the interest rate move. |
(i) | For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining 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, they are treated as part of the equity portion of the portfolio.
Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Percentages are based on net assets as of March 31, 2018.
The portfolio is actively managed and current holdings may be different.
4
Table of Contents
Portfolio Composition – continued
MFS Pennsylvania Municipal Bond Fund
Portfolio structure (i)
Top five industries (i) | ||||
Healthcare Revenue – Hospitals | 18.5% | |||
Universities – Colleges | 14.8% | |||
General Obligations – Schools | 10.2% | |||
Water & Sewer Utility Revenue | 9.1% | |||
General Obligations – General Purpose | 7.1% |
Composition including fixed income credit quality (a)(i) | ||||
AAA | 1.0% | |||
AA | 15.6% | |||
A | 48.5% | |||
BBB | 18.2% | |||
BB | 6.5% | |||
B | 0.3% | |||
CC | 0.5% | |||
C | 2.7% | |||
D | 0.7% | |||
Not Rated | 7.7% | |||
Cash & Cash Equivalents | (1.7)% | |||
Portfolio facts (i) | ||||
Average Duration (d) | 6.4 | |||
Average Effective Maturity (m) | 15.2 yrs. |
Jurisdiction (i) | ||||
Pennsylvania | 83.6% | |||
Puerto Rico | 5.2% | |||
Illinois | 2.5% | |||
Guam | 1.7% | |||
California | 1.4% | |||
Colorado | 1.4% | |||
Michigan | 1.3% | |||
Florida | 0.8% | |||
Tennessee | 0.8% | |||
Texas | 0.8% | |||
Kentucky | 0.6% | |||
New Jersey | 0.4% | |||
Indiana | 0.3% | |||
Louisiana | 0.3% | |||
Georgia | 0.3% | |||
Nebraska | 0.2% | |||
Wisconsin | 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 or may not have held all of these instruments on this date. The fund is not rated by these agencies. |
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value due to the interest rate move. |
(i) | For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining 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, they are treated as part of the equity portion of the portfolio.
Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
From time to time Cash & Cash Equivalents may be negative due to timing of cash receipts.
Percentages are based on net assets as of March 31, 2018.
The portfolio is actively managed and current holdings may be different.
5
Table of Contents
Portfolio Composition – continued
MFS South Carolina Municipal Bond Fund
Portfolio structure (i)
Top five industries (i) | ||||
Healthcare Revenue – Hospitals | 20.5% | |||
Water & Sewer Utility Revenue | 14.7% | |||
State & Local Agencies | 12.1% | |||
Utilities – Municipal Owned | 7.0% | |||
Universities – Colleges | 6.5% |
Composition including fixed income credit quality (a)(i) | ||||
AAA | 4.3% | |||
AA | 26.9% | |||
A | 48.9% | |||
BBB | 8.2% | |||
BB | 1.2% | |||
B | 0.2% | |||
CC | 0.1% | |||
C | 2.9% | |||
D | 0.6% | |||
Not Rated | 4.8% | |||
Cash & Cash Equivalents | 1.9% | |||
Portfolio facts (i) | ||||
Average Duration (d) | 5.9 | |||
Average Effective Maturity (m) | 13.5 yrs. |
Jurisdiction (i) | ||||
South Carolina | 75.2% | |||
Puerto Rico | 5.5% | |||
Illinois | 2.4% | |||
California | 1.9% | |||
Pennsylvania | 1.8% | |||
Guam | 1.4% | |||
Michigan | 1.3% | |||
New York | 1.1% | |||
Colorado | 1.0% | |||
Tennessee | 0.9% | |||
Kentucky | 0.9% | |||
Massachusetts | 0.7% | |||
Florida | 0.7% | |||
Texas | 0.6% | |||
New Hampshire | 0.5% | |||
Virginia | 0.5% | |||
Nebraska | 0.5% | |||
Indiana | 0.4% | |||
New Jersey | 0.2% | |||
Georgia | 0.2% | |||
Washington | 0.2% | |||
Louisiana | 0.2% | |||
Ohio (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 or may not have held all of these instruments on this date. The fund is not rated by these agencies. |
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value due to the interest rate move. |
(i) | For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining 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, they are treated as part of the equity portion of the portfolio.
Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Percentages are based on net assets as of March 31, 2018.
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) | ||||
Healthcare Revenue – Hospitals | 19.8% | |||
General Obligations – General Purpose | 11.7% | |||
State & Local Agencies | 11.4% | |||
Water & Sewer Utility Revenue | 9.8% | |||
Universities – Colleges | 8.7% |
Composition including fixed income credit quality (a)(i) | ||||
AAA | 4.5% | |||
AA | 40.5% | |||
A | 29.2% | |||
BBB | 13.7% | |||
BB | 2.2% | |||
CCC | 0.2% | |||
C | 2.7% | |||
D | 0.8% | |||
Not Rated | 6.2% | |||
Cash & Cash Equivalents (o) | 0.0% | |||
Portfolio facts (i) | ||||
Average Duration (d) | 6.2 | |||
Average Effective Maturity (m) | 14.1 yrs. |
Jurisdiction (i) | ||||
Tennessee | 75.4% | |||
Puerto Rico | 5.4% | |||
Guam | 3.7% | |||
New York | 2.6% | |||
Illinois | 1.9% | |||
Pennsylvania | 1.9% | |||
Kentucky | 1.1% | |||
Florida | 1.1% | |||
Colorado | 1.1% | |||
U.S. Virgin Islands | 0.8% | |||
Wisconsin | 0.8% | |||
Massachusetts | 0.7% | |||
California | 0.7% | |||
New Jersey | 0.6% | |||
New Hampshire | 0.5% | |||
Virginia | 0.5% | |||
South Carolina | 0.3% | |||
Georgia | 0.3% | |||
Nebraska | 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 or may not have held all of these instruments on this date. The fund is not rated by these agencies. |
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value due to the interest rate move. |
(i) | For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining 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, they are treated as part of the equity portion of the portfolio.
Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Percentages are based on net assets as of March 31, 2018.
The portfolio is actively managed and current holdings may be different.
7
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Portfolio Composition – continued
MFS Virginia Municipal Bond Fund
Portfolio structure (i)
Top five industries (i) | ||||
Healthcare Revenue – Hospitals | 14.4% | |||
State & Local Agencies | 14.3% | |||
Water & Sewer Utility Revenue | 13.9% | |||
Universities – Colleges | 9.8% | |||
Transportation – Special Tax | 8.9% |
Composition including fixed income credit quality (a)(i) | ||||
AAA | 14.5% | |||
AA | 41.3% | |||
A | 17.7% | |||
BBB | 13.0% | |||
BB | 0.8% | |||
B | 1.6% | |||
CCC | 0.1% | |||
CC | 0.5% | |||
C | 2.7% | |||
D | 0.7% | |||
Not Rated | 8.0% | |||
Cash & Cash Equivalents | 0.8% | |||
Other | (1.7)% | |||
Portfolio facts (i) | ||||
Average Duration (d) | 6.0 | |||
Average Effective Maturity (m) | 14.0 yrs. |
Jurisdiction (i) | ||||
Virginia | 75.2% | |||
Puerto Rico | 6.2% | |||
Washington DC | 4.6% | |||
Illinois | 2.7% | |||
Guam | 2.3% | |||
Pennsylvania | 1.5% | |||
New York | 1.5% | |||
Tennessee | 1.2% | |||
Colorado | 1.0% | |||
Ohio | 0.9% | |||
California | 0.8% | |||
Michigan | 0.8% | |||
Connecticut | 0.5% | |||
Texas | 0.4% | |||
Washington | 0.3% | |||
Louisiana | 0.3% | |||
New Hampshire | 0.2% | |||
New Jersey | 0.2% | |||
Massachusetts | 0.2% | |||
Indiana | 0.1% |
(a) | For all securities other than those specifically described below, ratings are assigned to underlying securities utilizing ratings from Moody’s, Fitch, and Standard & Poor’s rating agencies and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). Securities rated BBB or higher are considered investment grade. All ratings are subject to change. Not Rated includes fixed income securities, including fixed income futures contracts, which have not been rated by any rating agency. The fund may or may not have held all of these instruments on this date. The fund is not rated by these agencies. |
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value due to the interest rate move. |
(i) | For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining 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, they are treated as part of the equity portion of the portfolio.
Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Other includes equivalent exposure from currency derivatives and/or any offsets to derivative positions and/or the leverage created through the issuance of self-deposited inverse floaters and may be negative.
Percentages are based on net assets as of March 31, 2018.
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) | ||||
Healthcare Revenue – Hospitals | 17.1% | |||
Universities – Colleges | 16.4% | |||
Water & Sewer Utility Revenue | 12.2% | |||
Miscellaneous Revenue – Other | 11.5% | |||
General Obligations – Schools | 11.0% |
Composition including fixed income credit quality (a)(i) | ||||
AAA | 0.8% | |||
AA | 27.6% | |||
A | 50.6% | |||
BBB | 5.9% | |||
BB | 1.1% | |||
CC | 1.2% | |||
C | 2.7% | |||
D | 0.5% | |||
Not Rated | 7.7% | |||
Cash & Cash Equivalents | 1.9% | |||
Portfolio facts (i) | ||||
Average Duration (d) | 5.5 | |||
Average Effective Maturity (m) | 13.2 yrs. |
Jurisdiction (i) | ||||
West Virginia | 71.5% | |||
Puerto Rico | 5.7% | |||
New York | 3.0% | |||
California | 3.0% | |||
Guam | 2.9% | |||
Illinois | 2.4% | |||
Massachusetts | 1.8% | |||
Florida | 1.3% | |||
Kentucky | 1.1% | |||
U.S. Virgin Islands | 1.0% | |||
Michigan | 0.9% | |||
Tennessee | 0.7% | |||
Texas | 0.6% | |||
Colorado | 0.6% | |||
Washington | 0.5% | |||
Utah | 0.5% | |||
Indiana | 0.3% | |||
New Jersey | 0.2% | |||
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 or may not have held all of these instruments on this date. The fund is not rated by these agencies. |
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value due to the interest rate move. |
(i) | For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining 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, they are treated as part of the equity portion of the portfolio.
Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Percentages are based on net assets as of March 31, 2018.
The portfolio is actively managed and current holdings may be different.
9
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Summary of Results
For the twelve months ended March 31, 2018, Class A shares, at net asset value, of the municipal bond funds of Mississippi, North Carolina, South Carolina, Tennessee, Virginia and West Virginia underperformed the Bloomberg Barclays Municipal Bond Index, while the municipal bond funds of New York and Pennsylvania outperformed the same benchmark over the same period. The performance for the individual funds and the benchmark are set forth in the Performance Summary.
Market Environment
Despite continued solid global economic growth, financial markets were buffeted by increased volatility late in the reporting period. The increase in volatility dented what had been high levels of investor confidence, leading to a correction in what had been elevated valuations. Valuations are now more in line with long-term averages after the recent bout of market weakness. So far, the rise in volatility has not disrupted the synchronized upturn in growth, though developed markets showed signs of a modest slowdown in the expansion’s pace in early 2018.
During the period, the US Federal Reserve (“Fed”) raised rates by 75 basis points, bringing the total number of hikes to six since the central bank began to normalize monetary policy in late 2015. The growth rate in the US, eurozone and Japan remains above potential, though inflation remains contained, particularly outside the US. In the middle of the period, the European Central Bank announced that it was extending its asset purchase program until the end of September 2018, but cut its pace of asset purchases in half as economic conditions improved. Both the Bank of England (“BOE”) and the Bank of Canada raised rates during the period, the BOE for the first time in a decade. The European political backdrop became a bit less volatile late in the period, with populist parties gaining an increased share of the vote, but thus far falling short of majorities in eurozone member states.
Bond yields rose in most developed economies during the period, but they remain low by historic standards. Credit spreads remain relatively tight, but widened modestly late in the period as market volatility increased. Increasing concern over growing global trade friction risks weighed on the strong global trade volumes seen during the period’s second half. The US announced broad-based tariffs on imports of steel and aluminum during the period, though some nations have been exempted, and later targeted China for tariffs, in retaliation for what it believes is abuse of intellectual property rights. Growing fears of wider trade skirmishes have added to volatility. Concerns that US technology giants have been careless with private user data are contributing to the volatility as well.
10-Year US Treasury yields were largely range-bound during the first half of the reporting period before spiking higher during the latter half of the reporting period, with most of the rise occurring during the first quarter of 2018. The surge in yields was primarily due to the passage of the Tax Cuts and Jobs Act, which cut individual and corporate tax rates, as well as a larger-than-expected fiscal spending package. This led investors to increase expectations for better economic growth and a potential increase in inflationary pressures, pushing bond yields higher. Yields moderated, however, towards the end of the reporting period due to increased equity market volatility and concerns about escalating trade wars.
The Fed, continuing its efforts to normalize monetary policy, raised the Federal Funds rate three times during the reporting period, including one rate increase under new Federal Reserve Chairman Jerome Powell, who replaced Janet Yellen in February 2018. Generally, markets viewed the transition to the new Fed chairman without much concern – having served as a Fed governor since 2012, Powell is a known quantity among investors.
Another major event that occurred during the period was Hurricane Maria making landfall on the island of Puerto Rico. The hurricane had a devastating impact on the island’s residents and the government’s ability to provide basic human services such as water, power and healthcare. The prospects for long-term recovery are still uncertain and the government and many of its agencies and instrumentalities, which were already operating under an oversight board established by the Puerto Rico Oversight, Management and Economic Stability Act, are in the process of amending their financial plans in light of the recent events. As such, prices of the majority of debt issued from the jurisdiction of Puerto Rico, both insured and uninsured, declined in the weeks following the Hurricane, but have since recovered somewhat.
For the reporting period, the municipal market largely took its cue from the direction of US Treasury rates. Yields were largely range-bound early in the period, and then accelerated higher towards the end of the reporting period, pushed higher by the same factors impacting US Treasury yields – optimism over stronger US growth in the wake of the tax reform and increased fiscal spending. Yields moderated in the last six weeks of the reporting period amid an increase in equity market volatility and concerns about the impact of a trade war on the global economy.
Against this backdrop, the municipal yield curve flattened, with yields on shorter-dated municipal bonds rising more than yields on longer-dated bonds. As a result, the broader US investment grade municipal bond market provided modestly positive returns with long-dated bonds dramatically outperforming short-dated bonds, and lower-quality bonds outperforming higher-quality.
The US economic backdrop appears supportive of municipal bond fundamentals; valuations appear tight within the context of longer-term municipal performance, but on a tax-adjusted basis, municipal bonds offer satisfactory relative value compared with broader fixed income markets.
10
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Management Review – continued
Factors Affecting Performance
Within all funds, an out-of-benchmark exposure to Ambac-insured Puerto Rican bonds hindered performance relative to the Bloomberg Barclays Municipal Bond Index.
In contrast, a shorter relative duration (d) stance in all funds, with the exception of the municipal bond fund of New York, positively impacted relative performance as interest rates rose during the reporting period. In all funds, a larger-than-benchmark exposure to the health care sector, and lesser exposure to general obligation bonds issued by the states, also helped relative results. Lastly, within all funds, with the exception of the municipal bond fund of Tennessee, an out-of-benchmark exposure to non-rated (r) securities aided relative returns.
Respectfully,
Portfolio Manager(s)
Michael Dawson
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value. |
(r) | Bonds rated “BBB”, “Baa”, or higher are considered investment grade; bonds rated “BB”, “Ba”, or below are considered non-investment grade. The sources for bond quality ratings are Moody’s Investors Service, Standard & Poor’s and Fitch, Inc. and are applied using the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). For securities which are not rated by any of the three agencies, the security is considered Not Rated. |
The views expressed in this report are those of the portfolio manager(s) only through the end of the period of the report as stated on the cover and do not necessarily reflect the views of MFS or any other person in the MFS organization. These views are subject to change at any time based on market or other conditions, and MFS disclaims any responsibility to update such views. These views may not be relied upon as investment advice or an indication of trading intent on behalf of any MFS portfolio. References to specific securities are not recommendations of such securities, and may not be representative of any MFS portfolio’s current or future investments.
11
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PERFORMANCE SUMMARY THROUGH 3/31/18
The following charts illustrate a representative class of each fund’s historical performance in comparison to its benchmark(s). Performance results include the deduction of the maximum applicable sales charge and reflect the percentage change in net asset value, including reinvestment of dividends and capital gains distributions. Each fund’s results have been compared to the Barclays Municipal Bond Index, a market capitalization-weighted index that measures the performance of the tax-exempt bond market. However, while this index is considered the benchmark for the performance of municipal bond funds, it is comprised of municipal bonds issued within the 50 states and the District of Columbia as well as U.S. territories and possessions such as Guam, Puerto Rico, and the Virgin Islands, while each of the funds invests a large percentage of its assets in municipal issuers of the state that is in the fund’s name. The performance of other share classes will be greater than or less than that of the class depicted below. Benchmarks are unmanaged and may not be invested in directly. Benchmark returns do not reflect sales charges, commissions or expenses. (See Notes to Performance Summary.)
Performance data shown represents past performance and is no guarantee of future results. Investment return and principal value fluctuate so your shares, when sold, may be worth more or less than the original cost; current performance may be lower or higher than quoted. The performance shown does not reflect the deduction of taxes, if any, that a shareholder would pay on fund distributions or the redemption of fund shares.
MFS Mississippi Municipal Bond Fund
Growth of a hypothetical $10,000 investment
Total returns through 3/31/18
Average annual without sales charge
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr | Life (t) | |||||||||
A | 8/06/92 | 2.07% | 2.06% | 3.84% | N/A | |||||||||
B | 9/07/93 | 1.40% | 1.38% | 3.13% | N/A | |||||||||
I | 4/01/16 | 2.15% | N/A | N/A | 0.86% | |||||||||
R6 | 8/01/17 | N/A | N/A | N/A | (0.36)% | |||||||||
Comparative benchmark(s) | ||||||||||||||
Bloomberg Barclays Municipal Bond Index (f) | 2.66% | 2.73% | 4.40% | N/A | ||||||||||
Average annual with sales charge | ||||||||||||||
A With Initial Sales Charge (4.25%) | (2.27)% | 1.17% | 3.39% | N/A | ||||||||||
B With CDSC (Declining over six years from 4% to 0%) (v) | (2.56)% | 1.02% | 3.13% | N/A |
CDSC – Contingent Deferred Sales Charge.
Class I and R6 shares do not have a sales charge.
(f) | Source: FactSet Research Systems Inc. |
(t) | For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.) |
(v) | Assuming redemption at the end of the applicable period. |
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Performance Summary – continued
MFS New York Municipal Bond Fund
Growth of a hypothetical $10,000 investment
Total returns through 3/31/18
Average annual without sales charge
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr | Life (t) | |||||||||
A | 6/06/88 | 2.89% | 2.43% | 4.00% | N/A | |||||||||
B | 9/07/93 | 2.12% | 1.67% | 3.23% | N/A | |||||||||
C | 12/11/00 | 2.12% | 1.69% | 3.22% | N/A | |||||||||
I | 4/01/16 | 3.07% | N/A | N/A | 1.77% | |||||||||
R6 | 8/01/17 | N/A | N/A | N/A | 0.11% | |||||||||
Comparative benchmark(s) | ||||||||||||||
Bloomberg Barclays Municipal Bond Index (f) | 2.66% | 2.73% | 4.40% | N/A | ||||||||||
Average annual with sales charge | ||||||||||||||
A With Initial Sales Charge (4.25%) | (1.48)% | 1.55% | 3.55% | N/A | ||||||||||
B With CDSC (Declining over six years from 4% to 0%) (v) | (1.86)% | 1.32% | 3.23% | N/A | ||||||||||
C With CDSC (1% for 12 months) (v) | 1.13% | 1.69% | 3.22% | N/A |
CDSC – Contingent Deferred Sales Charge.
Class I and R6 shares do not have a sales charge.
(f) | Source: FactSet Research Systems Inc. |
(t) | For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.) |
(v) | Assuming redemption at the end of the applicable period. |
13
Table of Contents
Performance Summary – continued
MFS North Carolina Municipal Bond Fund
Growth of a hypothetical $10,000 investment
Total returns through 3/31/18
Average annual without sales charge
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr | Life (t) | |||||||||
A | 10/31/84 | 2.28% | 1.96% | 3.88% | N/A | |||||||||
B | 9/07/93 | 1.43% | 1.19% | 3.12% | N/A | |||||||||
C | 1/03/94 | 1.42% | 1.20% | 3.11% | N/A | |||||||||
I | 4/01/16 | 2.54% | N/A | N/A | 1.38% | |||||||||
R6 | 8/01/17 | N/A | N/A | N/A | 0.15% | |||||||||
Comparative benchmark(s) | ||||||||||||||
Bloomberg Barclays Municipal Bond Index (f) | 2.66% | 2.73% | 4.40% | N/A | ||||||||||
Average annual with sales charge | ||||||||||||||
A With Initial Sales Charge (4.25%) | (2.07)% | 1.08% | 3.43% | N/A | ||||||||||
B With CDSC (Declining over six years from 4% to 0%) (v) | (2.53)% | 0.83% | 3.12% | N/A | ||||||||||
C With CDSC (1% for 12 months) (v) | 0.43% | 1.20% | 3.11% | N/A |
CDSC – Contingent Deferred Sales Charge.
Class I and R6 shares do not have a sales charge.
(f) | Source: FactSet Research Systems Inc. |
(t) | For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.) |
(v) | Assuming redemption at the end of the applicable period. |
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Table of Contents
Performance Summary – continued
MFS Pennsylvania Municipal Bond Fund
Growth of a hypothetical $10,000 investment
Total returns through 3/31/18
Average annual without sales charge
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr | Life (t) | |||||||||
A | 2/01/93 | 3.29% | 2.66% | 4.18% | N/A | |||||||||
B | 9/07/93 | 2.62% | 1.90% | 3.38% | N/A | |||||||||
I | 4/01/16 | 3.37% | N/A | N/A | 2.04% | |||||||||
R6 | 8/01/17 | N/A | N/A | N/A | 0.78% | |||||||||
Comparative benchmark(s) | ||||||||||||||
Bloomberg Barclays Municipal Bond Index (f) | 2.66% | 2.73% | 4.40% | N/A | ||||||||||
Average annual with sales charge | ||||||||||||||
A With Initial Sales Charge (4.25%) | (1.10)% | 1.77% | 3.73% | N/A | ||||||||||
B With CDSC (Declining over six years from 4% to 0%) (v) | (1.37)% | 1.54% | 3.38% | N/A |
CDSC – Contingent Deferred Sales Charge.
Class I and R6 shares do not have a sales charge.
(f) | Source: FactSet Research Systems Inc. |
(t) | For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.) |
(v) | Assuming redemption at the end of the applicable period. |
15
Table of Contents
Performance Summary – continued
MFS South Carolina Municipal Bond Fund
Growth of a hypothetical $10,000 investment
Total returns through 3/31/18
Average annual without sales charge
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr | Life (t) | |||||||||
A | 10/31/84 | 2.41% | 1.84% | 3.59% | N/A | |||||||||
B | 9/07/93 | 1.64% | 1.07% | 2.83% | N/A | |||||||||
I | 4/01/16 | 2.60% | N/A | N/A | 1.19% | |||||||||
R6 | 8/01/17 | N/A | N/A | N/A | 0.08% | |||||||||
Comparative benchmark(s) | ||||||||||||||
Bloomberg Barclays Municipal Bond Index (f) | 2.66% | 2.73% | 4.40% | N/A | ||||||||||
Average annual with sales charge | ||||||||||||||
A With Initial Sales Charge (4.25%) | (1.95)% | 0.96% | 3.14% | N/A | ||||||||||
B With CDSC (Declining over six years from 4% to 0%) (v) | (2.33)% | 0.70% | 2.83% | N/A |
CDSC – Contingent Deferred Sales Charge.
Class I and R6 shares do not have a sales charge.
(f) | Source: FactSet Research Systems Inc. |
(t) | For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.) |
(v) | Assuming redemption at the end of the applicable period. |
16
Table of Contents
Performance Summary – continued
MFS Tennessee Municipal Bond Fund
Growth of a hypothetical $10,000 investment
Total returns through 3/31/18
Average annual without sales charge
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr | Life (t) | |||||||||
A | 8/12/88 | 1.92% | 1.76% | 3.68% | N/A | |||||||||
B | 9/07/93 | 1.16% | 1.00% | 2.92% | N/A | |||||||||
I | 4/01/16 | 2.18% | N/A | N/A | 1.18% | |||||||||
R6 | 8/01/17 | N/A | N/A | N/A | (0.19)% | |||||||||
Comparative benchmark(s) | ||||||||||||||
Bloomberg Barclays Municipal Bond Index (f) | 2.66% | 2.73% | 4.40% | N/A | ||||||||||
Average annual with sales charge | ||||||||||||||
A With Initial Sales Charge (4.25%) | (2.41)% | 0.88% | 3.23% | N/A | ||||||||||
B With CDSC (Declining over six years from 4% to 0%) (v) | (2.79)% | 0.64% | 2.92% | N/A |
CDSC – Contingent Deferred Sales Charge.
Class I and R6 shares do not have a sales charge.
(f) | Source: FactSet Research Systems Inc. |
(t) | For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.) |
(v) | Assuming redemption at the end of the applicable period. |
17
Table of Contents
Performance Summary – continued
MFS Virginia Municipal Bond Fund
Growth of a hypothetical $10,000 investment
Total returns through 3/31/18
Average annual without sales charge
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr | Life (t) | |||||||||
A | 10/31/84 | 2.13% | 2.14% | 3.78% | N/A | |||||||||
B | 9/07/93 | 1.37% | 1.39% | 3.02% | N/A | |||||||||
C | 1/03/94 | 1.36% | 1.39% | 3.02% | N/A | |||||||||
I | 4/01/16 | 2.42% | N/A | N/A | 1.31% | |||||||||
R6 | 8/01/17 | N/A | N/A | N/A | 0.05% | |||||||||
Comparative benchmark(s) | ||||||||||||||
Bloomberg Barclays Municipal Bond Index (f) | 2.66% | 2.73% | 4.40% | N/A | ||||||||||
Average annual with sales charge | ||||||||||||||
A With Initial Sales Charge (4.25%) | (2.21)% | 1.25% | 3.33% | N/A | ||||||||||
B With CDSC (Declining over six years from 4% to 0%) (v) | (2.59)% | 1.04% | 3.02% | N/A | ||||||||||
C With CDSC (1% for 12 months) (v) | 0.38% | 1.39% | 3.02% | N/A |
CDSC – Contingent Deferred Sales Charge.
Class I and R6 shares do not have a sales charge.
(f) | Source: FactSet Research Systems Inc. |
(t) | For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.) |
(v) | Assuming redemption at the end of the applicable period. |
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Performance Summary – continued
MFS West Virginia Municipal Bond Fund
Growth of a hypothetical $10,000 investment
Total returns through 3/31/18
Average annual without sales charge
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr | Life (t) | |||||||||
A | 10/31/84 | 2.15% | 1.96% | 3.54% | N/A | |||||||||
B | 9/07/93 | 1.38% | 1.20% | 2.77% | N/A | |||||||||
I | 4/01/16 | 2.33% | N/A | N/A | 1.35% | |||||||||
R6 | 8/01/17 | N/A | N/A | N/A | 0.18% | |||||||||
Comparative benchmark(s) | ||||||||||||||
Bloomberg Barclays Municipal Bond Index (f) | 2.66% | 2.73% | 4.40% | N/A | ||||||||||
Average annual with sales charge | ||||||||||||||
A With Initial Sales Charge (4.25%) | (2.19)% | 1.08% | 3.09% | N/A | ||||||||||
B With CDSC (Declining over six years from 4% to 0%) (v) | (2.58)% | 0.83% | 2.77% | N/A |
CDSC – Contingent Deferred Sales Charge.
Class I and R6 shares do not have a sales charge.
(f) | Source: FactSet Research Systems Inc. |
(t) | For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.) |
(v) | Assuming redemption at the end of the applicable period. |
Benchmark Definition(s)
Bloomberg Barclays Municipal Bond Index – a market capitalization-weighted index that measures the performance of the tax-exempt bond market.
It is not possible to invest directly in an index.
Notes to Performance Summary
Average annual total return represents the average annual change in value for each share class for the periods presented. Life returns are presented where the share class has less than 10 years of performance history and represent the average annual total return from the class inception date to the stated period end date. As the fund’s share classes may have different inception dates, the life returns may represent different time periods and may not be comparable. As a result, no comparative benchmark performance information is provided for life periods.
Performance results reflect any applicable expense subsidies and waivers in effect during the periods shown. Without such subsidies and waivers each fund’s performance results would be less favorable. Please see the prospectus and financial statements for complete details.
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Performance Summary – continued
Performance results do not include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles and may differ from amounts reported in the financial highlights.
A portion of income may be subject to state, federal, and/or alternative minimum tax. Capital gains, if any, are subject to a capital gains tax.
From time to time the funds may receive proceeds from litigation settlements, without which performance would be lower.
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Fund expenses borne by the shareholders during the period, October 1, 2017 through March 31, 2018
As a shareholder of the funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on certain purchase or redemption payments, and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the funds and to
compare these costs with the ongoing costs of investing in other mutual funds.
These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period
October 1, 2017 through March 31, 2018.
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 10/01/17 | Ending Account Value 3/31/18 | Expenses 10/01/17-3/31/18 | ||||||||||||||
A | Actual | 0.84% | $1,000.00 | $992.21 | $4.17 | |||||||||||||
Hypothetical (h) | 0.84% | $1,000.00 | $1,020.74 | $4.23 | ||||||||||||||
B | Actual | 1.49% | $1,000.00 | $989.01 | $7.39 | |||||||||||||
Hypothetical (h) | 1.49% | $1,000.00 | $1,017.50 | $7.49 | ||||||||||||||
I | Actual | 0.74% | $1,000.00 | $991.55 | $3.67 | |||||||||||||
Hypothetical (h) | 0.74% | $1,000.00 | $1,021.24 | $3.73 | ||||||||||||||
R6 | Actual | 0.71% | $1,000.00 | $991.89 | $3.53 | |||||||||||||
Hypothetical (h) | 0.71% | $1,000.00 | $1,021.39 | $3.58 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
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Expense Tables – continued
MFS NEW YORK MUNICIPAL BOND FUND
Share Class | Annualized Expense Ratio | Beginning Account Value 10/01/17 | Ending Account Value 3/31/18 | Expenses Paid During Period (p) 10/01/17-3/31/18 | ||||||||||||||
A | Actual | 0.88% | $1,000.00 | $996.03 | $4.38 | |||||||||||||
Hypothetical (h) | 0.88% | $1,000.00 | $1,020.54 | $4.43 | ||||||||||||||
B | Actual | 1.64% | $1,000.00 | $991.35 | $8.14 | |||||||||||||
Hypothetical (h) | 1.64% | $1,000.00 | $1,016.75 | $8.25 | ||||||||||||||
C | Actual | 1.64% | $1,000.00 | $992.27 | $8.15 | |||||||||||||
Hypothetical (h) | 1.64% | $1,000.00 | $1,016.75 | $8.25 | ||||||||||||||
I | Actual | 0.64% | $1,000.00 | $996.69 | $3.19 | |||||||||||||
Hypothetical (h) | 0.64% | $1,000.00 | $1,021.74 | $3.23 | ||||||||||||||
R6 | Actual | 0.59% | $1,000.00 | $996.98 | $2.94 | |||||||||||||
Hypothetical (h) | 0.59% | $1,000.00 | $1,021.99 | $2.97 |
MFS NORTH CAROLINA MUNICIPAL BOND FUND
Share Class | Annualized Expense Ratio | Beginning Account Value 10/01/17 | Ending Account Value 3/31/18 | Expenses Paid During Period (p) 10/01/17-3/31/18 | ||||||||||||||
A | Actual | 0.86% | $1,000.00 | $995.91 | $4.28 | |||||||||||||
Hypothetical (h) | 0.86% | $1,000.00 | $1,020.64 | $4.33 | ||||||||||||||
B | Actual | 1.62% | $1,000.00 | $992.14 | $8.05 | |||||||||||||
Hypothetical (h) | 1.62% | $1,000.00 | $1,016.85 | $8.15 | ||||||||||||||
C | Actual | 1.62% | $1,000.00 | $992.15 | $8.05 | |||||||||||||
Hypothetical (h) | 1.62% | $1,000.00 | $1,016.85 | $8.15 | ||||||||||||||
I | Actual | 0.61% | $1,000.00 | $997.26 | $3.04 | |||||||||||||
Hypothetical (h) | 0.61% | $1,000.00 | $1,021.89 | $3.07 | ||||||||||||||
R6 | Actual | 0.55% | $1,000.00 | $997.68 | $2.74 | |||||||||||||
Hypothetical (h) | 0.55% | $1,000.00 | $1,022.19 | $2.77 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
Notes to Expense Table
For the MFS New York 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 and are outside of the expense limitation arrangement. For Class A shares, this rebate reduced the expense ratio above by 0.01%. See Note 3 in the Notes to Financial Statements for additional information.
For the MFS North Carolina 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 and are outside of the expense limitation arrangement. For Class A shares, this rebate reduced the expense ratio above by 0.01%. See Note 3 in the Notes to Financial Statements for additional information.
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Expense Tables – continued
MFS PENNSYLVANIA MUNICIPAL BOND FUND
Share Class | Annualized Expense Ratio | Beginning Account Value 10/01/17 | Ending Account Value 3/31/18 | Expenses Paid During Period (p) 10/01/17-3/31/18 | ||||||||||||||
A | Actual | 0.81% | $1,000.00 | $1,001.56 | $4.04 | |||||||||||||
Hypothetical (h) | 0.81% | $1,000.00 | $1,020.89 | $4.08 | ||||||||||||||
B | Actual | 1.56% | $1,000.00 | $997.89 | $7.77 | |||||||||||||
Hypothetical (h) | 1.56% | $1,000.00 | $1,017.15 | $7.85 | ||||||||||||||
I | Actual | 0.71% | $1,000.00 | $1,002.24 | $3.54 | |||||||||||||
Hypothetical (h) | 0.71% | $1,000.00 | $1,021.39 | $3.58 | ||||||||||||||
R6 | Actual | 0.66% | $1,000.00 | $1,002.59 | $3.30 | |||||||||||||
Hypothetical (h) | 0.66% | $1,000.00 | $1,021.64 | $3.33 |
MFS SOUTH CAROLINA MUNICIPAL BOND FUND
Share Class | Annualized Expense Ratio | Beginning Account Value 10/01/17 | Ending Account Value 3/31/18 | Expenses Paid During Period (p) 10/01/17-3/31/18 | ||||||||||||||
A | Actual | 0.84% | $1,000.00 | $995.06 | $4.18 | |||||||||||||
Hypothetical (h) | 0.84% | $1,000.00 | $1,020.74 | $4.23 | ||||||||||||||
B | Actual | 1.59% | $1,000.00 | $991.33 | $7.89 | |||||||||||||
Hypothetical (h) | 1.59% | $1,000.00 | $1,017.00 | $8.00 | ||||||||||||||
I | Actual | 0.59% | $1,000.00 | $995.68 | $2.94 | |||||||||||||
Hypothetical (h) | 0.59% | $1,000.00 | $1,021.99 | $2.97 | ||||||||||||||
R6 | Actual | 0.52% | $1,000.00 | $996.03 | $2.59 | |||||||||||||
Hypothetical (h) | 0.52% | $1,000.00 | $1,022.34 | $2.62 |
MFS TENNESSEE MUNICIPAL BOND FUND
Share Class | Annualized Expense Ratio | Beginning Account Value 10/01/17 | Ending Account Value 3/31/18 | Expenses Paid During Period (p) 10/01/17-3/31/18 | ||||||||||||||
A | Actual | 0.88% | $1,000.00 | $994.26 | $4.38 | |||||||||||||
Hypothetical (h) | 0.88% | $1,000.00 | $1,020.54 | $4.43 | ||||||||||||||
B | Actual | 1.63% | $1,000.00 | $990.52 | $8.09 | |||||||||||||
Hypothetical (h) | 1.63% | $1,000.00 | $1,016.80 | $8.20 | ||||||||||||||
I | Actual | 0.63% | $1,000.00 | $995.02 | $3.13 | |||||||||||||
Hypothetical (h) | 0.63% | $1,000.00 | $1,021.79 | $3.18 | ||||||||||||||
R6 | Actual | 0.55% | $1,000.00 | $995.41 | $2.74 | |||||||||||||
Hypothetical (h) | 0.55% | $1,000.00 | $1,022.19 | $2.77 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
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Expense Tables – continued
MFS VIRGINIA MUNICIPAL BOND FUND
Share Class | Annualized Expense Ratio | Beginning Account Value 10/01/17 | Ending Account Value 3/31/18 | Expenses Paid During Period (p) 10/01/17-3/31/18 | ||||||||||||||
A | Actual | 0.84% | $1,000.00 | $995.02 | $4.18 | |||||||||||||
Hypothetical (h) | 0.84% | $1,000.00 | $1,020.74 | $4.23 | ||||||||||||||
B | Actual | 1.59% | $1,000.00 | $992.17 | $7.90 | |||||||||||||
Hypothetical (h) | 1.59% | $1,000.00 | $1,017.00 | $8.00 | ||||||||||||||
C | Actual | 1.59% | $1,000.00 | $992.16 | $7.90 | |||||||||||||
Hypothetical (h) | 1.59% | $1,000.00 | $1,017.00 | $8.00 | ||||||||||||||
I | Actual | 0.59% | $1,000.00 | $997.22 | $2.94 | |||||||||||||
Hypothetical (h) | 0.59% | $1,000.00 | $1,021.99 | $2.97 | ||||||||||||||
R6 | Actual | 0.51% | $1,000.00 | $997.61 | $2.54 | |||||||||||||
Hypothetical (h) | 0.51% | $1,000.00 | $1,022.39 | $2.57 |
MFS WEST VIRGINIA MUNICIPAL BOND FUND
Share Class | Annualized Expense Ratio | Beginning Account Value 10/01/17 | Ending Account Value 3/31/18 | Expenses Paid During Period (p) 10/01/17-3/31/18 | ||||||||||||||
A | Actual | 0.86% | $1,000.00 | $996.16 | $4.28 | |||||||||||||
Hypothetical (h) | 0.86% | $1,000.00 | $1,020.64 | $4.33 | ||||||||||||||
B | Actual | 1.62% | $1,000.00 | $992.39 | $8.05 | |||||||||||||
Hypothetical (h) | 1.62% | $1,000.00 | $1,016.85 | $8.15 | ||||||||||||||
I | Actual | 0.62% | $1,000.00 | $996.64 | $3.09 | |||||||||||||
Hypothetical (h) | 0.62% | $1,000.00 | $1,021.84 | $3.13 | ||||||||||||||
R6 | Actual | 0.54% | $1,000.00 | $998.10 | $2.69 | |||||||||||||
Hypothetical (h) | 0.54% | $1,000.00 | $1,022.24 | $2.72 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
Notes to Expense Table
For the MFS Virginia Municipal Bond Fund, expense ratios include 0.03% of investment related expenses from self-deposited inverse floaters (See Note 2 of the Notes to Financial Statements) that are outside of the expense limitation arrangement (See Note 3 of the Notes to Financial Statements).
For the MFS Virginia Municipal Bond Fund, each class with a Rule 12b-1 service fee is subject to a rebate of a portion of such fee. Such rebates are included in the expense ratios above and are outside of the expense limitation arrangement. For Class A shares, this rebate reduced the expense ratio above by 0.01%. See Note 3 in the Notes to Financial Statements for additional information.
For the MFS West Virginia Municipal Bond Fund, each class with a Rule 12b-1 service fee is subject to a rebate of a portion of such fee. Such rebates are included in the expense ratios above and are outside of the expense limitation arrangement. For Class A shares, this rebate reduced the expense ratio above by 0.01%. See Note 3 in the Notes to Financial Statements for additional information.
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3/31/18
MFS MISSISSIPPI MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
Municipal Bonds - 98.0% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 0.7% | ||||||||
Dallas and Fort Worth, TX, International Airport Rev., “B”, 5%, 11/01/2044 | $ | 115,000 | $ | 125,797 | ||||
Dallas and Fort Worth, TX, International Airport Rev., “C”, 5%, 11/01/2045 | 75,000 | 81,244 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, 5%, 12/01/2044 | 45,000 | 49,539 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, BAM, 5%, 12/01/2039 | 230,000 | 253,925 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/2039 | 35,000 | 38,137 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/2044 | 60,000 | 65,192 | ||||||
$ | 613,834 | |||||||
General Obligations - General Purpose - 14.7% | ||||||||
Canton, MS, Mississippi Development Bank Special Obligation, “A”, AGM, 5.75%, 10/01/2031 (Prerefunded 10/01/2021) | $ | 625,000 | $ | 703,950 | ||||
Guam Government, “A”, 6.75%, 11/15/2029 (Prerefunded 11/15/2019) | 35,000 | 37,730 | ||||||
Guam Government, “A”, 7%, 11/15/2039 (Prerefunded 11/15/2019) | 40,000 | 43,278 | ||||||
Gulfport, MI, AGM, 5%, 11/01/2024 | 500,000 | 572,765 | ||||||
Jackson County, MS, Development Bank Special Obligations, AGM, 5.25%, 3/01/2020 | 620,000 | 657,467 | ||||||
Mississippi Development Bank Special Obligation (Harrison County Coliseum), “A”, 5.25%, 1/01/2034 | 1,000,000 | 1,197,730 | ||||||
Mississippi Development Bank Special Obligation (Hinds County), 5%, 11/01/2032 | 500,000 | 579,090 | ||||||
Mississippi Development Bank Special Obligation (Hinds County), 4%, 11/01/2042 | 500,000 | 514,840 | ||||||
Mississippi Development Bank Special Obligation (Rankin County), 5%, 3/01/2031 | 1,000,000 | 1,149,440 | ||||||
Mississippi Development Bank Special Obligation (Rankin County), 5%, 3/01/2032 | 1,000,000 | 1,145,250 | ||||||
Puerto Rico Public Buildings Authority Rev., “M-2”, AMBAC, 10%, 7/01/2035 | 150,000 | 156,974 | ||||||
State of California, 6%, 11/01/2039 | 700,000 | 746,655 | ||||||
State of Illinois, 5%, 11/01/2027 | 200,000 | 208,020 | ||||||
State of Illinois, “D”, 5%, 11/01/2028 | 195,000 | 202,357 | ||||||
State of Mississippi, “A”, 5%, 10/01/2028 | 1,000,000 | 1,164,690 | ||||||
State of Mississippi, “A”, 5%, 10/01/2033 | 1,000,000 | 1,175,010 | ||||||
State of Mississippi, “B”, 5%, 12/01/2033 | 1,000,000 | 1,165,610 | ||||||
State of Mississippi, “F”, 5%, 11/01/2029 | 650,000 | 756,171 | ||||||
State of Mississippi, Capital Improvement Projects, “A”, 5%, 10/01/2030 (Prerefunded 10/01/2021) | 1,000,000 | 1,106,470 | ||||||
$ | 13,283,497 |
Issuer | Shares/Par | Value ($) | ||||||
General Obligations - Schools - 7.3% | ||||||||
Berks County, PA, Reading School District, AGM, 5%, 3/01/2035 | $ | 20,000 | $ | 22,524 | ||||
Berks County, PA, Reading School District, AGM, 5%, 3/01/2036 | 20,000 | 22,474 | ||||||
Berks County, PA, Reading School District, AGM, 5%, 3/01/2037 | 15,000 | 16,819 | ||||||
Berks County, PA, Reading School District, AGM, 5%, 3/01/2038 | 10,000 | 11,196 | ||||||
Dublin, CA, Unified School District (Election of 2016), “B”, 4%, 8/01/2043 | 490,000 | 515,720 | ||||||
Lamar County, MS, School District, 5%, 9/01/2031 (Prerefunded 9/01/2023) | 1,095,000 | 1,252,987 | ||||||
Mississippi Development Bank Special Obligation (Canton Public School District), AGM, 5%, 12/01/2031 | 1,000,000 | 1,144,780 | ||||||
Mississippi Development Bank Special Obligation (Gulfport School District), BAM, 5%, 4/01/2031 | 500,000 | 562,665 | ||||||
Mississippi Development Bank Special Obligation (Gulfport School District), BAM, 5%, 4/01/2032 | 500,000 | 562,075 | ||||||
Mississippi Development Bank Special Obligation (Hinds Community College District Capital Improvement Refunding Project), AGM, 4%, 10/01/2027 | 770,000 | 820,812 | ||||||
Mississippi Development Bank Special Obligation, (Mississippi Gulf Coast Community College District Facilities Construction and Refinancing Project), 5%, 12/01/2026 | 1,000,000 | 1,170,640 | ||||||
San Diego, CA, Unified School District (Election of 2008), Capital Appreciation, “C”, 0%, 7/01/2035 | 1,020,000 | 546,649 | ||||||
$ | 6,649,341 | |||||||
Healthcare Revenue - Hospitals - 11.7% | ||||||||
California Health Facilities Financing Authority Rev. (Stanford Health System), “A”, 4%, 11/15/2040 | $ | 300,000 | $ | 311,157 | ||||
Gulfport, MS, Hospital Facilities Rev. (Memorial Hospital at Gulfport Project), 5%, 7/01/2027 | 500,000 | 555,555 | ||||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 7%, 8/15/2044 (Prerefunded 8/15/2019) | 325,000 | 347,795 | ||||||
Kentucky Economic Development Finance Authority Hospital Rev. (Owensboro Medical Health System, Inc.), “A”, 6.375%, 6/01/2040 (Prerefunded 6/01/2020) | 380,000 | 415,910 | ||||||
Massachusetts Development Finance Agency Rev. (Partners Healthcare System Issue), “S”, 4%, 7/01/2041 | 535,000 | 548,889 | ||||||
Miami-Dade County, FL, Health Facilities Authority Hospital Rev., 6%, 8/01/2030 (Prerefunded 8/01/2020) | 60,000 | 65,560 |
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Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Miami-Dade County, FL, Health Facilities Authority Hospital Rev., Unfunded Balance, 6%, 8/01/2030 | $ | 20,000 | $ | 21,568 | ||||
Mississippi Development Bank Special Obligation (Magnolia Regional Health Center Project), “A”, 6.75%, 10/01/2036 | 500,000 | 538,010 | ||||||
Mississippi Hospital Equipment & Facilities Authority Rev. (Baptist Memorial Healthcare), “A”, 5%, 9/01/2022 | 1,000,000 | 1,093,710 | ||||||
Mississippi Hospital Equipment & Facilities Authority Rev. (Clay County Medical Corp.), 5%, 10/01/2039 | 2,105,000 | 2,222,080 | ||||||
Mississippi Hospital Equipment & Facilities Authority Rev. (Delta Regional Medical Center), FHA, 5%, 2/01/2035 | 1,000,000 | 1,002,060 | ||||||
Mississippi Hospital Equipment & Facilities Authority Rev. (Forrest County General Hospital), 5.25%, 1/01/2029 | 1,000,000 | 1,042,950 | ||||||
Mississippi Hospital Equipment & Facilities Authority Rev., Refunding & Improvement, (Southwest Regional Medical Center), 5.5%, 4/01/2019 | 250,000 | 250,163 | ||||||
Mississippi Hospital Equipment & Facilities Authority Rev., Refunding & Improvement, (Southwest Regional Medical Center), 5.75%, 4/01/2023 | 250,000 | 250,172 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6%, 10/01/2027 (Prerefunded 10/01/2019) | 215,000 | 228,420 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6.125%, 10/01/2039 (Prerefunded 10/01/2019) | 550,000 | 585,343 | ||||||
St. Petersburg, FL, Health Facilities Authority (All Children Hospital), “A”, 6.5%, 11/15/2039 (Prerefunded 11/15/2019) | 135,000 | 144,927 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 6.75%, 7/01/2029 (Prerefunded 7/01/2019) | 75,000 | 79,430 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 7%, 7/01/2039 (Prerefunded 7/01/2019) | 185,000 | 196,494 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (ProHealth Care, Inc. Obligated Group), 6.625%, 2/15/2039 (Prerefunded 2/15/2019) | 640,000 | 666,643 | ||||||
$ | 10,566,836 | |||||||
Industrial Revenue - Paper - 0.9% | ||||||||
Lowndes County, MS, Solid Waste Disposal & Pollution Control Rev. (Weyerhaeuser Co.), 6.8%, 4/01/2022 | $ | 750,000 | $ | 858,968 | ||||
Miscellaneous Revenue - Other - 0.3% | ||||||||
Texas Private Activity Surface Transportation Corp. Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 7%, 12/31/2038 | $ | 110,000 | $ | 129,358 |
Issuer | Shares/Par | Value ($) | ||||||
Miscellaneous Revenue - Other - continued | ||||||||
Texas Private Activity Surface Transportation Corp. Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 6.75%, 6/30/2043 | $ | 85,000 | $ | 98,598 | ||||
$ | 227,956 | |||||||
Multi-Family Housing Revenue - 1.1% | ||||||||
Mississippi Home Corp., Multifamily Rev. (Providence Place of Senatobia LLC), GNMA, 5.35%, 8/20/2048 | $ | 1,000,000 | $ | 1,035,850 | ||||
Sales & Excise Tax Revenue - 3.7% | ||||||||
Chicago, IL, Transit Authority Sales Tax Receipts Rev., AGM, 5%, 12/01/2046 | $ | 640,000 | $ | 698,170 | ||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6%, 1/15/2041 | 450,000 | 483,682 | ||||||
Guam Government Business Privilege Tax Rev., “A”, 5.25%, 1/01/2036 | 295,000 | 307,145 | ||||||
Guam Government Business Privilege Tax Rev., “D”, 5%, 11/15/2031 | 595,000 | 626,916 | ||||||
Massachusetts Bay Transportation Authority, Sales Tax Rev., “A-1”, 5.25%, 7/01/2029 | 750,000 | 930,262 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, AMBAC, 0%, 8/01/2054 | 295,000 | 37,990 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2042 | 185,000 | 42,990 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2045 | 50,000 | 9,872 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2046 | 1,030,000 | 192,878 | ||||||
$ | 3,329,905 | |||||||
Single Family Housing - State - 0.9% | ||||||||
Mississippi Home Corp., Homeownership Mortgage Rev., “A”, 4.55%, 12/01/2031 | $ | 830,000 | $ | 851,057 | ||||
State & Local Agencies - 16.5% | ||||||||
Colorado State University Board of Governors, System Enterprise Refunding Rev., “E”, 4%, 3/01/2043 | $ | 470,000 | $ | 489,124 | ||||
Commonwealth Financing Authority, PA, Tobacco Master Settlement Payment Rev., 5%, 6/01/2032 | 25,000 | 28,069 | ||||||
Commonwealth Financing Authority, PA, Tobacco Master Settlement Payment Rev., 5%, 6/01/2033 | 25,000 | 27,933 | ||||||
Commonwealth Financing Authority, PA, Tobacco Master Settlement Payment Rev., 5%, 6/01/2034 | 10,000 | 11,119 | ||||||
Forest County, MS, Development Bank Special Obligation (Public Improvement Project), ASSD GTY, 5%, 3/01/2029 (Prerefunded 3/01/2019) | 750,000 | 773,167 |
26
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
State & Local Agencies - continued | ||||||||
Jackson County, MS, Development Bank Special Obligations, ASSD GTY, 5.625%, 7/01/2039 | $ | 1,000,000 | $ | 1,045,820 | ||||
Mississippi Development Bank Special Obligation, ASSD GTY, 4.75%, 10/01/2028 | 270,000 | 280,311 | ||||||
Mississippi Development Bank Special Obligation (Capital Projects), AGM, 5%, 7/01/2028 | 640,000 | 641,587 | ||||||
Mississippi Development Bank Special Obligation (Department of Corrections), “C”, 5.25%, 8/01/2027 (Prerefunded 8/01/2020) | 1,000,000 | 1,078,040 | ||||||
Mississippi Development Bank Special Obligation (Department of Rehabilitation Services Capital Improvement Project), AGM, 5%, 7/01/2023 | 345,000 | 374,625 | ||||||
Mississippi Development Bank Special Obligation (Department of Rehabilitation Services Capital Improvement Project), AGM, 5%, 7/01/2024 | 360,000 | 389,506 | ||||||
Mississippi Development Bank Special Obligation (Department of Rehabilitation Services Capital Improvement Project), AGM, 5%, 7/01/2025 | 380,000 | 409,416 | ||||||
Mississippi Development Bank Special Obligation (Desoto County Mississippi Highway Construction Project), 5%, 1/01/2029 | 500,000 | 548,530 | ||||||
Mississippi Development Bank Special Obligation (Desoto County Mississippi Highway Construction Project), 5%, 1/01/2030 | 500,000 | 547,835 | ||||||
Mississippi Development Bank Special Obligation (Harrison County), ASSD GTY, 4.75%, 10/01/2028 (Prerefunded 10/01/2019) | 850,000 | 888,097 | ||||||
Mississippi Development Bank Special Obligation (Jackson County), ASSD GTY, 5%, 7/01/2022 | 500,000 | 544,245 | ||||||
Mississippi Development Bank Special Obligation (Jackson County), ASSD GTY, 5.375%, 7/01/2036 | 500,000 | 539,965 | ||||||
Mississippi Development Bank Special Obligation (Laurel Highway Refunding Project), “B”, 4%, 1/01/2022 | 735,000 | 778,203 | ||||||
Mississippi Development Bank Special Obligation (Montfort Jones Memorial Hospital Project), 5.75%, 5/01/2036 | 500,000 | 539,055 | ||||||
Mississippi Development Bank Special Obligation (Washington County Regional Correctional Facility), ASSD GTY, 4.75%, 7/01/2031 | 1,200,000 | 1,262,196 | ||||||
Mississippi Development Bank Special Obligation, (Biloxi, Mississippi Refunding Project), BAM, 5%, 11/01/2027 | 1,090,000 | 1,248,453 | ||||||
Mississippi Development Bank Special Obligation, (Mississippi Department of Corrections Walnut Grove Correctional Facility Refunding Bonds Project), 5%, 8/01/2027 | 1,500,000 | 1,750,425 | ||||||
New York Dormitory Authority Rev., State Personal Income Tax, “A”, (Group C), 5%, 2/15/2041 | 390,000 | 444,226 |
Issuer | Shares/Par | Value ($) | ||||||
State & Local Agencies - continued | ||||||||
Orangeburg County, SC, Facilities Corp. Installment Purchase Rev. (Detention Center Project), 4%, 12/01/2042 | $ | 280,000 | $ | 284,710 | ||||
$ | 14,924,657 | |||||||
Tax - Other - 3.6% | ||||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/2024 (Prerefunded 12/01/2019) | $ | 125,000 | $ | 132,616 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/2029 (Prerefunded 12/01/2019) | 40,000 | 42,600 | ||||||
Mississippi Development Bank Special Obligation (Jackson Public School District Limited Tax Refunding Note Project) “B”, 5%, 10/01/2023 | 910,000 | 987,059 | ||||||
Puerto Rico Convention Center District Authority, Hotel Occupancy Tax Rev., “A”, AMBAC, 5%, 7/01/2031 | 510,000 | 493,655 | ||||||
Puerto Rico Infrastructure Financing Authority Rev., Capital Appreciation, “A”, AMBAC, 0%, 7/01/2036 | 1,195,000 | 417,342 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2027 | 315,000 | 324,412 | ||||||
State of Mississippi, Gaming Tax Rev., “E”, 5%, 10/15/2030 | 750,000 | 860,812 | ||||||
$ | 3,258,496 | |||||||
Tobacco - 0.5% | ||||||||
Illinois Railsplitter Tobacco Settlement Authority Rev., 6%, 6/01/2028 (Prerefunded 6/01/2021) | $ | 420,000 | $ | 472,441 | ||||
Toll Roads - 0.6% | ||||||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 6%, 1/01/2037 | $ | 160,000 | $ | 178,987 | ||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 5.5%, 1/01/2042 | 310,000 | 338,716 | ||||||
$ | 517,703 | |||||||
Transportation - Special Tax - 3.7% | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “CC”, AGM, 5.25%, 7/01/2033 | $ | 1,135,000 | $ | 1,207,322 | ||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “J”, NATL, 5%, 7/01/2029 | 10,000 | 9,657 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “L”, AMBAC, 5.25%, 7/01/2038 | 910,000 | 882,354 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “L”, ASSD GTY, 5.25%, 7/01/2041 | 185,000 | 198,033 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “L”, NATL, 5.25%, 7/01/2035 | 255,000 | 242,485 |
27
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Transportation - Special Tax - continued | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, AMBAC, 5.5%, 7/01/2029 | $ | 545,000 | $ | 557,851 | ||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., Capital Appreciation, “A”, AMBAC, 0%, 7/01/2018 | 5,000 | 4,950 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., Capital Appreciation, “N”, AMBAC, 0%, 7/01/2019 | 20,000 | 18,992 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., Capital Appreciation, “N”, AMBAC, 0%, 7/01/2020 | 35,000 | 31,813 | ||||||
New Jersey Transportation Trust Fund Authority, Federal Highway Reimbursement Rev., “A-1”, 5%, 6/15/2027 | 165,000 | 183,247 | ||||||
$ | 3,336,704 | |||||||
Universities - Colleges - 21.4% | ||||||||
Alcorn State University Educational Building Corp., Student Housing Rev., “A”, 5.125%, 9/01/2034 (Prerefunded 9/01/2019) | $ | 1,000,000 | $ | 1,048,400 | ||||
Alcorn State University Educational Building Corp., Student Housing Rev., “A”, 5.25%, 9/01/2039 (Prerefunded 9/01/2019) | 920,000 | 966,129 | ||||||
Jackson State University, Educational Building Corp. Rev., “A-1”, 5%, 3/01/2034 | 1,500,000 | 1,592,955 | ||||||
Massachusetts Health & Educational Facilities Authority Rev. (Massachusetts Institute of Technology), “I-1”, 5.2%, 1/01/2028 | 920,000 | 1,136,301 | ||||||
Medical Center, Educational Building Corp. Rev. (University of Mississippi Medical Center), “B”, AMBAC, 5.5%, 12/01/2023 | 880,000 | 970,957 | ||||||
Mississippi State University, Educational Building Corp. Refunding Rev. (Mississippi State University Facilities Refinancing), “A”, 4%, 8/01/2043 | 600,000 | 618,846 | ||||||
Mississippi State University, Educational Building Corp. Rev. (Campus Improvement Project), 5%, 11/01/2027 | 400,000 | 461,472 | ||||||
Mississippi State University, Educational Building Corp. Rev. (Campus Improvement Project), 5%, 11/01/2028 | 350,000 | 404,047 | ||||||
Mississippi State University, Educational Building Corp. Rev. (Mississippi State University Refunding and Improvements Project), 5.25%, 8/01/2038 (Prerefunded 8/01/2023) | 1,000,000 | 1,157,960 | ||||||
Mississippi State University, Educational Building Corp. Rev. (Residence Hall Construction and Refunding Project), 5%, 8/01/2036 (Prerefunded 8/01/2021) | 1,585,000 | 1,747,003 | ||||||
New York Dormitory Authority Rev. (New York University), “1”, AMBAC, 5.5%, 7/01/2040 | 590,000 | 770,304 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.375%, 12/01/2021 | 15,000 | 14,944 |
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
S.M. Educational Building Corp. Rev. (Facilities Refinancing Project), 5%, 9/01/2034 | $ | 480,000 | $ | 548,966 | ||||
S.M. Educational Building Corp. Rev. (Facilities Refinancing Project), “A”, 5%, 9/01/2035 | 1,000,000 | 1,140,500 | ||||||
The University of Mississippi Medical Center, Educational Building Corp. Rev., “A”, 5%, 6/01/2047 | 1,250,000 | 1,391,675 | ||||||
University of Mississippi Medical Center, Educational Building Corp. Rev. (New Facilities & Refinancing Project), “A”, 4%, 6/01/2047 | 1,000,000 | 1,015,310 | ||||||
University of Mississippi, Educational Building Corp. Rev. (Facilities Refinancing Project) “A”, 5%, 10/01/2029 | 500,000 | 582,235 | ||||||
University of Mississippi, Educational Building Corp. Rev. (Facilities Refinancing Project) “A”, 5%, 10/01/2030 | 500,000 | 580,185 | ||||||
University of Mississippi, Educational Building Corp. Rev. (Residential College Project), “C”, 4.75%, 11/01/2034 (Prerefunded 11/01/2019) | 715,000 | 748,684 | ||||||
University of Southern Mississippi, COP (Parking Facilities Project), ASSD GTY, 5.125%, 9/15/2039 (Prerefunded 9/15/2019) | 490,000 | 514,005 | ||||||
University of Southern Mississippi, Educational Building Corp. Rev. (Facilities Refinancing Project) “A”, 5%, 3/01/2028 | 1,745,000 | 1,997,641 | ||||||
$ | 19,408,519 | |||||||
Universities - Dormitories - 1.5% | ||||||||
Mississippi Business Finance Corp., Rev. (Statesman Housing LLC Project), “A”, 4.75%, 6/01/2039 (Prerefunded 6/01/2019) | $ | 1,000,000 | $ | 1,034,780 | ||||
Oklahoma Development Finance Authority, First Mortgage Rev. (Provident Education Resources, Inc.- Cross Village Student Housing Project), 5%, 8/01/2052 | 130,000 | 138,260 | ||||||
Oklahoma Development Finance Authority, First Mortgage Rev. (Provident Education Resources, Inc.- Cross Village Student Housing Project), 5.25%, 8/01/2057 | 145,000 | 155,830 | ||||||
$ | 1,328,870 | |||||||
Utilities - Investor Owned - 0.4% | ||||||||
Michigan Strategic Fund Ltd. Obligation Rev. (Detroit Edison Co.), 5.625%, 7/01/2020 | $ | 370,000 | $ | 398,013 | ||||
Utilities - Municipal Owned - 2.5% | ||||||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/2033 | $ | 315,000 | $ | 344,342 | ||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/2039 | 75,000 | 81,297 | ||||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/2044 | 85,000 | 91,829 | ||||||
Long Island, NY, Power Authority, Electric Systems Rev., “A”, 6%, 5/01/2033 (Prerefunded 5/01/2019) | 155,000 | 162,187 |
28
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Utilities - Municipal Owned - continued | ||||||||
Mississippi Development Bank Special Obligation (Columbus Electric Systems Project), ASSD GTY, 4.7%, 7/01/2027 (Prerefunded 7/01/2019) | $ | 155,000 | $ | 160,757 | ||||
Mississippi Development Bank Special Obligation (Columbus Electric Systems Project), ASSD GTY, 4.75%, 7/01/2028 (Prerefunded 7/01/2019) | 100,000 | 103,775 | ||||||
Mississippi Development Bank Special Obligation (Columbus Electric Systems Project), ASSD GTY, 4.85%, 7/01/2029 (Prerefunded 7/01/2019) | 485,000 | 503,905 | ||||||
Mississippi Development Bank Special Obligation (Municipal Energy Agency Power Supply Project), AGM, 5%, 3/01/2035 | 500,000 | 559,855 | ||||||
Puerto Rico Electric Power Authority Rev., “DDD”, AGM, 3.625%, 7/01/2023 | 15,000 | 14,776 | ||||||
Puerto Rico Electric Power Authority Rev., “DDD”, AGM, 3.65%, 7/01/2024 | 80,000 | 78,245 | ||||||
Puerto Rico Electric Power Authority Rev., “SS”, ASSD GTY, 4.375%, 7/01/2030 | 10,000 | 9,840 | ||||||
Puerto Rico Electric Power Authority Rev., “UU”, ASSD GTY, 4.25%, 7/01/2027 | 60,000 | 59,952 | ||||||
Puerto Rico Electric Power Authority Rev., “VV”, NATL, 5.25%, 7/01/2030 | 105,000 | 102,948 | ||||||
Puerto Rico Electric Power Authority Rev., “VV”, NATL, 5.25%, 7/01/2032 | 15,000 | 14,507 | ||||||
$ | 2,288,215 | |||||||
Utilities - Other - 0.3% | ||||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2021 | $ | 185,000 | $ | 203,250 | ||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2022 | 95,000 | 105,804 | ||||||
$ | 309,054 | |||||||
Water & Sewer Utility Revenue - 5.7% | ||||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 7/01/2036 | $ | 30,000 | $ | 32,200 | ||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5.625%, 7/01/2040 (Prerefunded 7/01/2020) | 285,000 | 309,063 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 1/01/2046 | 145,000 | 154,097 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), “A”, 5%, 7/01/2029 | 30,000 | 32,603 |
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - continued | ||||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), “A”, 5%, 7/01/2035 | $ | 30,000 | $ | 31,771 | ||||
Jackson County, MS, Utility Authority Rev. (Water and Wastewater Treatment System), AGM, 5%, 9/01/2040 | 2,000,000 | 2,208,020 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Sewage Disposal System Rev. Refunding Second Lien Local Project), “C-7”, NATL, 5%, 7/01/2032 | 25,000 | 27,572 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Second Lien Local Project), “D-6”, NATL, 5%, 7/01/2036 | 30,000 | 32,802 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Senior Lien Local Project), “D-1”, AGM, 5%, 7/01/2035 | 15,000 | 16,651 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Senior Lien Local Project), “D-1”, AGM, 5%, 7/01/2037 | 35,000 | 38,789 | ||||||
Mississippi Development Bank Special Obligation (City of Jackson Water and Sewer System Rev. Bond Project), AGM, 6.875%, 12/01/2040 | 750,000 | 911,130 | ||||||
Mississippi Development Bank Special Obligation (City of Jackson Water and Sewer System Rev. Bond Project), “A”, AGM, 5%, 9/01/2023 | 1,220,000 | 1,329,129 | ||||||
$ | 5,123,827 | |||||||
Total Municipal Bonds (Identified Cost, $86,302,967) | $ | 88,783,743 | ||||||
Investment Companies (h) - 0.2% | ||||||||
Money Market Funds - 0.2% | ||||||||
MFS Institutional Money Market Portfolio, 1.71% (v) (Identified Cost, $179,628) | 179,653 | $ | 179,635 | |||||
Other Assets, Less Liabilities - 1.8% | 1,670,097 | |||||||
Net Assets - 100.0% | $ | 90,633,475 |
See Portfolio Footnotes and Notes to Financial Statements
29
Table of Contents
PORTFOLIO OF INVESTMENTS
3/31/18
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 - 98.8% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 1.7% | ||||||||
Chicago, IL, O’Hare International Airport Rev., Third Lien, “A”, 5.625%, 1/01/2035 (Prerefunded 1/01/2021) | $ | 450,000 | $ | 495,495 | ||||
Chicago, IL, O’Hare International Airport Rev., Third Lien, “A”, 5.625%, 1/01/2035 | 105,000 | 114,288 | ||||||
Dallas and Fort Worth, TX, International Airport Rev., “B”, 5%, 11/01/2044 | 245,000 | 268,003 | ||||||
Dallas and Fort Worth, TX, International Airport Rev., “C”, 5%, 11/01/2045 | 170,000 | 184,153 | ||||||
Niagara, NY, Frontier Transportation Authority Rev. (Buffalo-Niagara International Airport), “A”, 5%, 4/01/2028 | 650,000 | 722,722 | ||||||
Niagara, NY, Frontier Transportation Authority Rev. (Buffalo-Niagara International Airport), “A”, 5%, 4/01/2029 | 500,000 | 553,910 | ||||||
Port Authority of NY & NJ, Special Obligation Rev. (JFK International Air Terminal LLC), 6%, 12/01/2042 | 1,160,000 | 1,274,863 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, 5%, 12/01/2044 | 90,000 | 99,078 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, BAM, 5%, 12/01/2039 | 15,000 | 16,560 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/2039 | 80,000 | 87,171 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/2044 | 130,000 | 141,249 | ||||||
$ | 3,957,492 | |||||||
General Obligations - General Purpose - 6.1% | ||||||||
Commonwealth of Puerto Rico, “A”, AGM, 5.375%, 7/01/2025 | $ | 45,000 | $ | 47,493 | ||||
Commonwealth of Puerto Rico, “A”, NATL, 5.5%, 7/01/2020 | 550,000 | 558,068 | ||||||
Commonwealth of Puerto Rico, Public Improvement Refunding, “A-4”, AGM, 5%, 7/01/2031 | 165,000 | 170,528 | ||||||
Guam Government, “A”, 7%, 11/15/2039 (Prerefunded 11/15/2019) | 105,000 | 113,606 | ||||||
Nassau County, NY, General Improvement, “B”, 5%, 4/01/2023 | 1,820,000 | 2,049,684 | ||||||
Nassau County, NY, General Improvement, “B”, AGM, 5%, 4/01/2034 | 2,530,000 | 2,917,672 | ||||||
New York, NY, “B-1”, 5%, 12/01/2041 | 3,000,000 | 3,422,610 | ||||||
New York, NY, “E-1”, 6.25%, 10/15/2028 (Prerefunded 10/15/2018) | 960,000 | 983,606 | ||||||
New York, NY, “E-1”, 6.25%, 10/15/2028 | 40,000 | 41,010 | ||||||
New York, NY, “J”, FGIC, 5.5%, 2/15/2026 | 5,000 | 5,015 |
Issuer | Shares/Par | Value ($) | ||||||
General Obligations - General Purpose - continued | ||||||||
Orange County, NY, Various Purposes, “A”, 2.25%, 3/15/2032 | $ | 2,210,000 | $ | 1,931,452 | ||||
Puerto Rico Public Buildings Authority Rev., “H”, AMBAC, 5.5%, 7/01/2018 | 305,000 | 306,330 | ||||||
Puerto Rico Public Buildings Authority Rev., “M-2”, AMBAC, 10%, 7/01/2035 | 115,000 | 120,346 | ||||||
Puerto Rico Public Buildings Authority Rev., Guaranteed, “D”, AMBAC, 5.45%, 7/01/2030 | 270,000 | 270,008 | ||||||
State of Illinois, 5%, 11/01/2027 | 510,000 | 530,451 | ||||||
State of Illinois, “D”, 5%, 11/01/2028 | 450,000 | 466,978 | ||||||
$ | 13,934,857 | |||||||
General Obligations - Schools - 0.4% | ||||||||
Montebello, CA, Unified School District (Election of 2016), “A”, 4%, 8/01/2046 | $ | 995,000 | $ | 1,023,377 | ||||
Healthcare Revenue - Hospitals - 9.8% | ||||||||
Buffalo & Erie County, NY, Industrial Land Development Corp. Rev. (Catholic Health System, Inc. Project), 5%, 7/01/2026 | $ | 450,000 | $ | 507,564 | ||||
Buffalo & Erie County, NY, Industrial Land Development Corp. Rev. (Catholic Health System, Inc. Project), 5%, 7/01/2027 | 300,000 | 336,924 | ||||||
Buffalo & Erie County, NY, Industrial Land Development Corp. Rev. (Catholic Health System, Inc. Project), 5%, 7/01/2029 | 590,000 | 658,558 | ||||||
Dutchess County, NY, Local Development Corp. Rev. (Health Quest Systems),“A”, 5%, 7/01/2044 | 1,000,000 | 1,095,180 | ||||||
Jefferson County, NY, Civic Development Corp. Rev. (Samaritan Medical Center), “A”, 5%, 11/01/2037 | 2,000,000 | 2,197,860 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.25%, 7/01/2031 | 215,000 | 221,317 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.375%, 7/01/2041 | 245,000 | 250,682 | ||||||
Miami-Dade County, FL, Health Facilities Authority Hospital Rev., 6%, 8/01/2030 (Prerefunded 8/01/2020) | 125,000 | 136,582 | ||||||
Miami-Dade County, FL, Health Facilities Authority Hospital Rev., Unfunded Balance, 6%, 8/01/2030 | 40,000 | 43,136 | ||||||
Monroe County, NY, Industrial Development Corp. Rev. (Rochester General Hospital Project), 5%, 12/01/2046 | 2,000,000 | 2,200,420 | ||||||
Nassau County, NY, Local Economic Assistance Corp. Rev. (Catholic Health Services of Long Island Obligated Group Project), 5%, 7/01/2032 | 1,000,000 | 1,098,130 |
30
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Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
New Hampshire Business Finance Authority Rev. (Huggins Hospital), 6.875%, 10/01/2039 (Prerefunded 10/01/2019) | $ | 35,000 | $ | 37,468 | ||||
New Jersey Health Care Facilities, Financing Authority Rev. (University Hospital), “A”, AGM, 5%, 7/01/2046 | 170,000 | 187,326 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (Bronx-Lebanon Hospital Center), LOC, 6.25%, 2/15/2035 (Prerefunded 2/15/2019) | 1,495,000 | 1,553,230 | ||||||
New York Dormitory Authority Rev., Non- State Supported Debt (Hospital Special Surgery), FHA, 6.25%, 8/15/2034 | 1,970,000 | 2,087,491 | ||||||
New York Dormitory Authority Rev., Non- State Supported Debt (Mount Sinai Hospital), “A”, 5%, 7/01/2026 | 2,000,000 | 2,133,260 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (NYU Hospitals Center), “A”, 5.5%, 7/01/2025 (Prerefunded 7/01/2020) | 750,000 | 811,095 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (Orange Regional Medical Center), 6.25%, 12/01/2037 (Prerefunded 12/01/2018) | 750,000 | 772,725 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (Orange Regional Medical Center), “A”, 5%, 12/01/2035 | 800,000 | 869,128 | ||||||
New York, NY, Health & Hospital Corp. Rev., “A”, 5.5%, 2/15/2023 | 1,000,000 | 1,002,920 | ||||||
Royal Oak, MI, Hospital Finance Authority Rev. (William Beaumont Hospital), 5%, 9/01/2039 | 1,290,000 | 1,403,249 | ||||||
Suffolk County, NY, Economic Development Corp. Rev. (Catholic Health Services of Long Island), 5%, 7/01/2028 (Prerefunded 7/01/2021) | 145,000 | 159,123 | ||||||
Suffolk County, NY, Economic Development Corp. Rev. (Catholic Health Services of Long Island), 5%, 7/01/2028 | 855,000 | 926,469 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 6.75%, 7/01/2029 (Prerefunded 7/01/2019) | 165,000 | 174,747 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 7%, 7/01/2039 (Prerefunded 7/01/2019) | 395,000 | 419,541 | ||||||
Westchester County, NY, Health Care Corp. Rev., “B”, “C-2”, 6%, 11/01/2030 (Prerefunded 11/01/2020) | 870,000 | 960,228 | ||||||
Westchester County, NY, Health Care Corp. Rev., “B”, “C-2”, 6%, 11/01/2030 | 130,000 | 141,254 | ||||||
$ | 22,385,607 | |||||||
Healthcare Revenue - Long Term Care - 2.2% | ||||||||
Brookhaven, NY, Local Development Corp. Rev. (Active Retirement Community, Inc. d/b/a/ Jefferson’s Ferry Project), 5.25%, 11/01/2036 | $ | 1,000,000 | $ | 1,132,640 | ||||
Buffalo & Erie County, NY, Industrial Land Development Corp. Rev. (Orchard Park CCRC, Inc. Project), 5%, 11/15/2037 | 750,000 | 813,135 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Long Term Care - continued | ||||||||
Suffolk County, NY, Economic Development Corp. Rev. (Peconic Landing at Southold, Inc.), 6%, 12/01/2040 | $ | 1,000,000 | $ | 1,079,860 | ||||
Tompkins County, NY, Development Corp. Continuing Care Retirement Community Rev. (Kendal at Ithaca, Inc. Project), “A”, 5%, 7/01/2044 | 1,000,000 | 1,071,840 | ||||||
Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7%, 11/01/2030 (Prerefunded 11/01/2020) | 95,000 | 106,925 | ||||||
Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7.125%, 11/01/2040 (Prerefunded 11/01/2020) | 180,000 | 203,159 | ||||||
Travis County, TX, Health Facilities Development Corp. Rev., Unrefunded Balance, (Westminster Manor Health), 7%, 11/01/2030 | 20,000 | 21,578 | ||||||
Ulster County, NY, Capital Resource Corp. (Woodland Pond at New Paltz Project), 4%, 9/15/2025 | 515,000 | 500,431 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), “A”, 7.25%, 9/15/2029 (Prerefunded 9/15/2019) | 20,000 | 21,556 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), “A”, 7.625%, 9/15/2039 (Prerefunded 9/15/2019) | 130,000 | 140,808 | ||||||
$ | 5,091,932 | |||||||
Human Services - 0.3% | ||||||||
New York Dormitory Authority Rev., Non-State Supported Debt (NYSARC, Inc.), “A”, 6%, 7/01/2032 (Prerefunded 7/01/2019) | $ | 705,000 | $ | 742,062 | ||||
Industrial Revenue - Airlines - 0.5% | ||||||||
New York Transportation Development Corp., Special Facility Rev. (American Airlines, Inc. John F. Kennedy International Airport Project), 5%, 8/01/2031 | $ | 1,000,000 | $ | 1,053,760 | ||||
Industrial Revenue - Environmental Services - 0.5% | ||||||||
Niagara County, NY, Industrial Development Agency, Solid Waste Disposal Rev. (Covanta Energy Project), “A”, 5.25%, 11/01/2042 | $ | 1,160,000 | $ | 1,160,696 | ||||
Industrial Revenue - Other - 1.1% | ||||||||
New York Liberty Development Corp. Rev. (Goldman Sachs Headquarters), 5.25%, 10/01/2035 | $ | 1,000,000 | $ | 1,240,940 | ||||
Onondaga County, NY, Industrial Development Agency, Sewer Facilities Rev. (Bristol-Meyers Squibb Co.), 5.75%, 3/01/2024 | 1,000,000 | 1,180,550 | ||||||
$ | 2,421,490 |
31
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Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Industrial Revenue - Paper - 0.6% | ||||||||
Build NYC Resource Corp. Solid Waste Disposal Rev. (Pratt Paper, Inc. Project), 4.5%, 1/01/2025 | $ | 1,200,000 | $ | 1,314,492 | ||||
Miscellaneous Revenue - Entertainment & Tourism - 0.8% | ||||||||
Brooklyn, NY, Arena Local Development Corp. (Barclays Center Project), 6.25%, 7/15/2040 (Prerefunded 1/15/2020) | $ | 1,750,000 | $ | 1,889,230 | ||||
Miscellaneous Revenue - Other - 6.8% | ||||||||
Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/2040 | $ | 205,000 | $ | 219,910 | ||||
Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/2044 | 315,000 | 337,132 | ||||||
New York Liberty Development Corp., Liberty Rev. (3 World Trade Center Project), “1”, 5%, 11/15/2044 | 1,940,000 | 2,056,342 | ||||||
New York Liberty Development Corp., Liberty Rev. (3 World Trade Center Project), “2”, 5.375%, 11/15/2040 | 1,500,000 | 1,644,360 | ||||||
New York Liberty Development Corp., Liberty | ||||||||
Rev. (7 World Trade Center Project), 5%, 9/15/2040 | 1,665,000 | 1,831,816 | ||||||
New York Liberty Development Corp., Liberty | ||||||||
Rev. (One Bryant Park LLC), 6.375%, 7/15/2049 | 2,500,000 | 2,659,700 | ||||||
New York Liberty Development Corp., Liberty Rev. (World Trade Center Project), 5%, 11/15/2044 | 1,000,000 | 1,084,110 | ||||||
New York, NY, Industrial Development Agency, Airport Facilities Rev. (Transportation Infrastructure Properties LLC), 5%, 7/01/2028 | 3,000,000 | 3,218,730 | ||||||
Syracuse, NY, Industrial Development Agency PILOT Rev. (Carousel Center Project), “A”, 5%, 1/01/2035 | 1,000,000 | 1,074,240 | ||||||
Syracuse, NY, Industrial Development Agency PILOT Rev. (Carousel Center Project), “A”, 5%, 1/01/2036 | 1,000,000 | 1,071,110 | ||||||
Texas Private Activity Surface Transportation Corp. Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 7%, 12/31/2038 | 205,000 | 241,076 | ||||||
Texas Private Activity Surface Transportation Corp. Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 6.75%, 6/30/2043 | 170,000 | 197,196 | ||||||
$ | 15,635,722 | |||||||
Multi-Family Housing Revenue - 2.6% | ||||||||
East Rochester, NY, Housing Authority Rev. (Woodland Village Project), 5.5%, 8/01/2033 | $ | 385,000 | $ | 385,604 | ||||
New York Housing Finance Agency Affordable Housing Rev., “D”, 5%, 11/01/2040 | 1,520,000 | 1,543,058 |
Issuer | Shares/Par | Value ($) | ||||||
Multi-Family Housing Revenue - continued | ||||||||
New York Housing Finance Agency Affordable Housing Rev., “D”, FNMA, 3.2%, 11/01/2046 | $ | 545,000 | $ | 502,610 | ||||
New York Housing Finance Agency Rev., “A”, 5.1%, 8/15/2041 | 695,000 | 695,598 | ||||||
New York Housing Finance Agency Rev., “A”, 5.25%, 11/01/2041 | 1,000,000 | 1,030,340 | ||||||
New York, NY, City Housing Development Corp., Multifamily Housing Rev. (8 Spruce Street), “F”, 4.5%, 2/15/2048 | 750,000 | 777,780 | ||||||
New York, NY, City Housing Development Corp., Multifamily Housing Rev., “L-1”, 4.8%, 11/01/2035 | 1,000,000 | 1,027,170 | ||||||
$ | 5,962,160 | |||||||
Port Revenue - 1.5% | ||||||||
Port Authority of NY & NJ (194th Series), 5%, 10/15/2030 | $ | 1,000,000 | $ | 1,163,230 | ||||
Port Authority of NY & NJ (205th Series), 5%, 11/15/2042 | 2,000,000 | 2,312,040 | ||||||
$ | 3,475,270 | |||||||
Sales & Excise Tax Revenue - 1.4% | ||||||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6%, 1/15/2034 | $ | 1,000,000 | $ | 1,079,710 | ||||
Guam Government Business Privilege Tax Rev., “D”, 5%, 11/15/2031 | 1,365,000 | 1,438,218 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “A”, 5.5%, 8/01/2028 (Prerefunded 8/01/2019) | 10,000 | 10,497 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, AMBAC, 0%, 8/01/2054 | 660,000 | 84,995 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2042 | 420,000 | 97,600 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2045 | 115,000 | 22,704 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2046 | 2,320,000 | 434,443 | ||||||
$ | 3,168,167 | |||||||
Secondary Schools - 3.2% | ||||||||
Buffalo & Erie County, NY, Industrial Land Development Corp. Rev. (Charter School for Applied Technologies Project), “A”, 5%, 6/01/2035 | $ | 1,000,000 | $ | 1,061,040 | ||||
Build NYC Resource Corp. Rev. (International Leadership Charter School Project), 6%, 7/01/2043 | 750,000 | 706,815 | ||||||
Build NYC Resource Corp. Rev. (The Chapin School Ltd. Project), 5%, 11/01/2047 | 2,000,000 | 2,452,660 | ||||||
Build NYC Resource Corp. Rev. (The Packer Collegiate Institute Project), 5%, 6/01/2040 | 675,000 | 738,612 |
32
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Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Secondary Schools - continued | ||||||||
La Vernia, TX, Higher Education Finance Corp. Rev. (Lifeschool of Dallas), “A”, 7.5%, 8/15/2041 (Prerefunded 8/15/2019) | $ | 535,000 | $ | 575,360 | ||||
Rensselaer County, NY, Industrial Development Agency, Civic Facility Rev. (Emma Willard School Refunding Project), 5%, 1/01/2034 | 450,000 | 502,524 | ||||||
Rensselaer County, NY, Industrial Development Agency, Civic Facility Rev. (Emma Willard School Refunding Project), 5%, 1/01/2035 | 500,000 | 556,750 | ||||||
Rensselaer County, NY, Industrial Development Agency, Civic Facility Rev. (Emma Willard School Refunding Project), 5%, 1/01/2036 | 645,000 | 715,312 | ||||||
$ | 7,309,073 | |||||||
State & Agency - Other - 0.2% | ||||||||
New York Dormitory Authority Rev. (State University) , “B”, FGIC, 5.25%, 5/15/2019 | $ | 305,000 | $ | 307,531 | ||||
New York Dormitory Authority Rev., City University System, AMBAC, 5.75%, 7/01/2018 | 175,000 | 176,873 | ||||||
$ | 484,404 | |||||||
State & Local Agencies - 12.5% | ||||||||
Delaware Valley, PA, Regional Finance Authority, “C”, FLR, 2.094% (LIBOR-3mo. + 0.75%), 6/01/2037 | $ | 1,430,000 | $ | 1,267,709 | ||||
Monroe County, NY, Industrial Development School Facility Rev. (Rochester Schools Modernization Project), 5%, 5/01/2032 | 1,000,000 | 1,172,630 | ||||||
Monroe County, NY, Industrial Development School Facility Rev. (Rochester Schools Modernization Project), 5%, 5/01/2033 | 1,000,000 | 1,167,400 | ||||||
New Jersey Building Authority Rev., Unrefunded Balance, “A”, BAM, 5%, 6/15/2029 | 30,000 | 33,959 | ||||||
New York City Educational Construction Fund Rev., “A”, 5.75%, 4/01/2033 | 1,860,000 | 2,057,178 | ||||||
New York Dormitory Authority Rev. (School Program), 6.25%, 7/01/2020 | 665,000 | 667,421 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt, “A”, 5%, 10/01/2020 | 2,000,000 | 2,154,920 | ||||||
New York Dormitory Authority Rev., State Personal Income Tax, “A”, (Group C), 5%, 2/15/2037 | 1,000,000 | 1,144,590 | ||||||
New York Dormitory Authority Rev., State Personal Income Tax, “A”, (Group C), 5%, 2/15/2041 | 3,000,000 | 3,417,120 | ||||||
New York Dormitory Authority Rev., State Personal Income Tax, “D”, 5%, 2/15/2040 | 830,000 | 902,484 | ||||||
New York Urban Development Corp. Rev., “D”, 5.625%, 1/01/2028 | 2,000,000 | 2,059,440 | ||||||
New York Urban Development Corp., State Personal Income Tax Rev., “C”, 5%, 3/15/2028 | 1,000,000 | 1,121,650 |
Issuer | Shares/Par | Value ($) | ||||||
State & Local Agencies - continued | ||||||||
New York Urban Development Corp., State Personal Income Tax Rev., “C”, 5%, 3/15/2034 | $ | 2,000,000 | $ | 2,330,580 | ||||
New York, NY, City Transitional Finance Authority Building Aid Rev., “S-2A”, 5%, 7/15/2040 | 2,000,000 | 2,169,100 | ||||||
New York, NY, City Transitional Finance Authority Building Aid Rev., “S-3”, 5.25%, 1/15/2039 | 2,000,000 | 2,054,640 | ||||||
New York, NY, City Transitional Finance Authority Building Aid Rev., “S-3”, 5%, 7/15/2043 | 3,000,000 | 3,475,560 | ||||||
New York, NY, City Transitional Finance Authority Building Aid Rev., “S-5”, 5%, 1/15/2032 | 1,000,000 | 1,025,150 | ||||||
United Nations Development Corp., “A”, 5%, 7/01/2026 | 500,000 | 519,525 | ||||||
$ | 28,741,056 | |||||||
Tax - Other - 11.7% | ||||||||
Glen Cove, NY, Local Economic Assistance Corp. (Garvies Point Public Improvement Project), Capital Appreciation, “B”, 0%, 1/01/2045 | $ | 4,000,000 | $ | 1,075,760 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/2024 (Prerefunded 12/01/2019) | 270,000 | 286,451 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/2029 (Prerefunded 12/01/2019) | 90,000 | 95,851 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2033 | 300,000 | 316,242 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2034 | 185,000 | 194,466 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2035 | 190,000 | 199,160 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2036 | 100,000 | 104,599 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2046 | 300,000 | 310,941 | ||||||
Hudson Yards, NY, Infrastructure Corp. Rev., “A”, 5%, 2/15/2042 | 2,000,000 | 2,275,920 | ||||||
Hudson Yards, NY, Infrastructure Corp. Rev., “A”, 5.75%, 2/15/2047 | 1,140,000 | 1,241,836 | ||||||
Hudson Yards, NY, Infrastructure Corp. Rev., “A”, 5.75%, 2/15/2047 (Prerefunded 2/15/2021) | 1,860,000 | 2,060,471 | ||||||
New York, NY, City Transitional Finance Authority Rev., “A-1”, 5%, 5/01/2032 | 825,000 | 954,096 | ||||||
New York, NY, City Transitional Finance Authority Rev., “A-3”, 4%, 8/01/2043 | 3,000,000 | 3,103,860 | ||||||
New York, NY, City Transitional Finance Authority Rev., “B-1”, 4%, 8/01/2042 | 2,000,000 | 2,074,080 | ||||||
New York, NY, City Transitional Finance Authority Rev., “D”, 5%, 2/01/2027 | 3,000,000 | 3,249,600 | ||||||
New York, NY, City Transitional Finance Authority Rev., “E-1”, 5%, 2/01/2035 | 2,300,000 | 2,656,270 |
33
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Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Tax - Other - continued | ||||||||
New York, NY, City Transitional Finance Authority Rev., “E-1”, 5%, 2/01/2043 | $ | 2,500,000 | $ | 2,855,975 | ||||
Puerto Rico Convention Center District Authority, Hotel Occupancy Tax Rev., “A”, AMBAC, 5%, 7/01/2031 | 345,000 | 333,943 | ||||||
Puerto Rico Infrastructure Financing Authority Rev., Capital Appreciation, “A”, AMBAC, 0%, 7/01/2036 | 3,020,000 | 1,054,705 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2024 | 425,000 | 439,004 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2026 | 1,215,000 | 1,253,892 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2027 | 715,000 | 736,364 | ||||||
$ | 26,873,486 | |||||||
Tobacco - 2.0% | ||||||||
Buckeye, OH, Tobacco Settlement Financing Authority Rev., “A-3”, 6.25%, 6/01/2037 | $ | 765,000 | $ | 767,968 | ||||
Illinois Railsplitter Tobacco Settlement Authority Rev., 6%, 6/01/2028 (Prerefunded 6/01/2021) | 355,000 | 399,325 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.5%, 6/01/2023 | 415,000 | 416,586 | ||||||
New York Counties Tobacco Trust II, 5.625%, 6/01/2035 | 90,000 | 90,307 | ||||||
Suffolk, NY, Tobacco Asset Securitization Corp., Tobacco Settlement, “B”, 5%, 6/01/2032 | 750,000 | 809,760 | ||||||
Tobacco Settlement Asset Securitization Corp., NY, “A”, 5%, 6/01/2035 | 1,000,000 | 1,101,000 | ||||||
Tobacco Settlement Asset Securitization Corp., NY, “A”, 5%, 6/01/2036 | 1,000,000 | 1,097,740 | ||||||
$ | 4,682,686 | |||||||
Toll Roads - 3.4% | ||||||||
Buffalo & Fort Erie Public Bridge Authority Toll System Rev., 5%, 1/01/2047 | $ | 1,000,000 | $ | 1,126,550 | ||||
Buffalo & Fort Erie Public Bridge Authority Toll System Rev. , 5%, 1/01/2042 | 1,000,000 | 1,130,600 | ||||||
New York Thruway Authority General Rev., Junior Indebtedness Obligations, “A”, 5.25%, 1/01/2056 | 2,000,000 | 2,263,040 | ||||||
Triborough Bridge & Tunnel Authority Rev., NY, “A”, 5%, 1/01/2028 | 1,000,000 | 1,111,500 | ||||||
Triborough Bridge & Tunnel Authority Rev., NY, “A-2”, 5%, 11/15/2029 (Prerefunded 11/15/2018) | 750,000 | 765,990 | ||||||
Triborough Bridge & Tunnel Authority Rev., NY, Unrefunded Balance, “A-2”, 5%, 11/15/2029 | 1,250,000 | 1,276,887 | ||||||
$ | 7,674,567 |
Issuer | Shares/Par | Value ($) | ||||||
Transportation - Special Tax - 4.0% | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “A”, NATL, 4.75%, 7/01/2038 | $ | 210,000 | $ | 190,220 | ||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “D”, AGM, 5%, 7/01/2032 | 275,000 | 275,231 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “J”, NATL, 5%, 7/01/2029 | 25,000 | 24,143 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “L”, AMBAC, 5.25%, 7/01/2038 | 1,290,000 | 1,250,810 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “L”, ASSD GTY, 5.25%, 7/01/2041 | 1,095,000 | 1,172,143 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “L”, NATL, 5.25%, 7/01/2035 | 545,000 | 518,251 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, AMBAC, 5.5%, 7/01/2029 | 1,235,000 | 1,264,121 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, NATL, 5.25%, 7/01/2032 | 115,000 | 111,218 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, NATL, 5.25%, 7/01/2033 | 105,000 | 101,068 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., Capital Appreciation, “A”, AMBAC, 0%, 7/01/2018 | 10,000 | 9,901 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., Capital Appreciation, “N”, AMBAC, 0%, 7/01/2019 | 45,000 | 42,732 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., Capital Appreciation, “N”, AMBAC, 0%, 7/01/2020 | 80,000 | 72,714 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Unrefunded Rev., “A”, NATL, 5%, 7/01/2038 | 40,000 | 36,439 | ||||||
Metropolitan Transportation Authority Refunding Rev., NY (Climate Bond Certified), “C-1”, 4%, 11/15/2037 | 2,000,000 | 2,075,880 | ||||||
Metropolitan Transportation Authority Rev., NY, 6.5%, 11/15/2028 | 380,000 | 391,563 | ||||||
Metropolitan Transportation Authority Rev., NY, “C”, 6.5%, 11/15/2028 (Prerefunded 11/15/2018) | 1,495,000 | 1,540,119 | ||||||
Metropolitan Transportation Authority Rev., NY, “C”, 6.5%, 11/15/2028 (Prerefunded 11/15/2018) | 125,000 | 128,772 | ||||||
$ | 9,205,325 | |||||||
Universities - Colleges - 16.3% | ||||||||
Albany, NY, Capital Resource Corp. Rev. (Albany College of Pharmacy Project), “A”, 5%, 12/01/2033 | $ | 125,000 | $ | 136,749 |
34
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Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
Albany, NY, Capital Resource Corp. Rev. (The College of Saint Rose), “A”, 5.625%, 7/01/2031 | $ | 1,000,000 | $ | 1,046,130 | ||||
Build NYC Resource Corp. Rev. (Albert Einstein School of Medicine, Inc.), 5.5%, 9/01/2045 | 1,000,000 | 1,086,000 | ||||||
Build NYC Resource Corp. Rev. (Manhattan College Project), 5%, 8/01/2047 | 2,000,000 | 2,238,580 | ||||||
Dobbs Ferry, NY, Local Development Corp. (Mercy College Project), 5%, 7/01/2039 | 1,000,000 | 1,128,250 | ||||||
Dutchess County, NY, Local Development Corp. Rev. (Culinary Institute of America Project), “A-1”, 5%, 7/01/2033 | 300,000 | 335,388 | ||||||
Dutchess County, NY, Local Development Corp. Rev. (Culinary Institute of America Project), “A-1”, 5%, 7/01/2046 | 555,000 | 611,638 | ||||||
Dutchess County, NY, Local Development Corp. Rev. (Vassar College Project), 5%, 7/01/2042 | 1,500,000 | 1,720,995 | ||||||
Hempstead, NY, Local Development Corp. Rev. (Adelphi University), “B”, 5.25%, 2/01/2039 | 500,000 | 512,970 | ||||||
Hempstead, NY, Local Development Corp. Rev. (Hofstra University Project), 5%, 7/01/2028 | 1,000,000 | 1,085,870 | ||||||
Hempstead, NY, Local Development Corp. Rev. (Hofstra University Project), 5%, 7/01/2047 | 2,000,000 | 2,253,620 | ||||||
Hempstead, NY, Local Development Corp. Rev. (Molloy College Project), 5%, 7/01/2036 | 675,000 | 748,717 | ||||||
Hempstead, NY, Local Development Corp. Rev. (Molloy College Project), 5%, 7/01/2038 | 480,000 | 530,434 | ||||||
Illinois Finance Authority Rev. (Roosevelt University Project), 6.25%, 4/01/2029 | 1,945,000 | 2,035,831 | ||||||
Miami-Dade County, FL, Educational Facilities Authority Rev. (University of Miami), “B”, 5.25%, 4/01/2029 | 1,325,000 | 1,568,336 | ||||||
Monroe County, NY, Industrial Development Corp. Rev. (University of Rochester Project), “A”, 5%, 7/01/2023 (Prerefunded 7/01/2021) | 500,000 | 550,360 | ||||||
Monroe County, NY, Industrial Development Corp. Rev. (University of Rochester Project), “A”, 5%, 7/01/2024 (Prerefunded 7/01/2021) | 1,000,000 | 1,100,720 | ||||||
Monroe County, NY, Industrial Development Corp. Rev. (University of Rochester Project), “A”, 5%, 7/01/2030 | 1,000,000 | 1,148,250 | ||||||
Monroe County, NY, Industrial Development Corp. Rev. (University of Rochester Project), “A”, 5%, 7/01/2037 | 1,000,000 | 1,156,010 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (Brooklyn Law School), 5.75%, 7/01/2033 | 600,000 | 623,196 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (Fordham University), “A”, 5%, 7/01/2035 | 500,000 | 567,845 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (Mount Sinai School of Medicine of New York University), 5.125%, 7/01/2039 (Prerefunded 7/01/2019) | 2,000,000 | 2,083,680 |
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
New York Dormitory Authority Rev., Non-State Supported Debt (New York University), 5.25%, 7/01/2048 (Prerefunded 7/01/2018) | $ | 1,955,000 | $ | 1,972,654 | ||||
New York Dormitory Authority Rev., Non-State Supported Debt (St. John’s University), “A”, 5%, 7/01/2027 | 1,000,000 | 1,151,090 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (The New School), “A”, 5%, 7/01/2032 | 1,000,000 | 1,133,860 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (The New School), “A”, 5%, 7/01/2036 | 500,000 | 561,660 | ||||||
Onondaga, NY, Civic Development Corp. Refunding Rev. (Le Moyne College Project), 5%, 1/01/2043 | 740,000 | 821,725 | ||||||
Onondaga, NY, Civic Development Corp. Rev. (Le Moyne College Project), 5.375%, 7/01/2040 | 2,000,000 | 2,108,500 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.125%, 4/01/2032 | 80,000 | 71,000 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.375%, 4/01/2042 | 135,000 | 116,100 | ||||||
Schenectady County, NY, Capital Resource Corp. Tax-Exempt Rev. (Union College Project), 5%, 1/01/2047 | 2,000,000 | 2,257,960 | ||||||
Tompkins County, NY, Development Corp. Continuing Care Retirement Community Rev. (Ithaca College Project), “A”, 5%, 7/01/2041 | 1,000,000 | 1,146,010 | ||||||
Troy, NY, Industrial Development Authority, Civic Facility Rev. (Rensselaer Polytechnic Institute), “E”, 5%, 9/01/2031 | 1,000,000 | 1,076,140 | ||||||
Yonkers, NY, Industrial Development Agency, Civic Facilities Rev. (Sarah Lawrence College Project), “A”, 6%, 6/01/2041 (Prerefunded 6/01/2019) | 595,000 | 623,923 | ||||||
$ | 37,310,191 | |||||||
Universities - Dormitories - 2.5% | ||||||||
Amherst, NY, Development Corporation, Student Housing Facility Refunding Rev. (UBF Facility/Student Housing Corp./Greiner and Hadley Projects at SUNY Buffalo) “A”, AGM, 5%, 10/01/2045 | $ | 1,000,000 | $ | 1,141,100 | ||||
Buffalo & Erie County, NY, Industrial Land Development Corp. Rev. (Buffalo State College), “A”, 5.375%, 10/01/2041 | 2,000,000 | 2,181,220 | ||||||
Onondaga County, NY, Trust for Cultural Resources Rev., (Abby Lane Housing Corp. Project), 5%, 5/01/2040 | 1,000,000 | 1,105,930 |
35
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Universities - Dormitories - continued | ||||||||
Westchester County, NY, Local Development Corp. Rev. (Purchase Housing Corp. II Project), 5%, 6/01/2042 | $ | 1,250,000 | $ | 1,399,975 | ||||
$ | 5,828,225 | |||||||
Utilities - Municipal Owned - 2.7% | ||||||||
Guam Power Authority Rev., “A”, 5.5%, 10/01/2030 (Prerefunded 10/01/2020) | $ | 515,000 | $ | 560,748 | ||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/2039 | 155,000 | 168,014 | ||||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/2044 | 180,000 | 194,461 | ||||||
Long Island, NY, Power Authority, Electric Systems Rev., 5%, 9/01/2035 | 1,000,000 | 1,147,000 | ||||||
Long Island, NY, Power Authority, Electric Systems Rev., “A”, 6.25%, 4/01/2033 (Prerefunded 4/01/2019) | 1,000,000 | 1,045,490 | ||||||
Long Island, NY, Power Authority, Electric | ||||||||
Systems Rev., “A”, 6%, 5/01/2033 (Prerefunded 5/01/2019) | 2,000,000 | 2,092,740 | ||||||
Puerto Rico Electric Power Authority Rev., “RR”, NATL, 5%, 7/01/2022 | 885,000 | 884,469 | ||||||
Puerto Rico Electric Power Authority Rev., “VV”, NATL, 5.25%, 7/01/2032 | 40,000 | 38,684 | ||||||
$ | 6,131,606 | |||||||
Utilities - Other - 0.7% | ||||||||
Public Authority for Colorado Energy Natural Gas Purchase Rev., 6.5%, 11/15/2038 | $ | 1,085,000 | $ | 1,506,848 | ||||
Texas Gas Acquisition & Supply Corp III., Gas Supply Rev., 5%, 12/15/2031 | 115,000 | 125,641 | ||||||
$ | 1,632,489 | |||||||
Water & Sewer Utility Revenue - 3.3% | ||||||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, ASSD GTY, 5.125%, 7/01/2047 | $ | 190,000 | $ | 190,424 |
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - continued | ||||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 7/01/2036 | $ | 215,000 | $ | 232,415 | ||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 7/01/2037 | 270,000 | 291,303 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 7/01/2040 | 750,000 | 805,560 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5.625%, 7/01/2040 (Prerefunded 7/01/2020) | 315,000 | 341,595 | ||||||
Mississippi Development Bank Special Obligation (City of Jackson Water and Sewer System Rev. Bond Project), AGM, 6.875%, 12/01/2040 | 100,000 | 121,484 | ||||||
New York Environmental Facilities Corp., Clean Water & Drinking Rev., “B”, 5%, 6/15/2033 | 2,140,000 | 2,153,482 | ||||||
New York, NY, Municipal Water Finance Authority, Water & Sewer System Rev., “BB”, 5%, 6/15/2046 | 1,000,000 | 1,146,720 | ||||||
New York, NY, Municipal Water Finance Authority, Water & Sewer System Rev., “DD”, 5%, 6/15/2034 | 2,000,000 | 2,228,880 | ||||||
$ | 7,511,863 | |||||||
Total Municipal Bonds (Identified Cost, $220,857,726) | $ | 226,601,285 | ||||||
Investment Companies (h) - 0.2% | ||||||||
Money Market Funds - 0.2% | ||||||||
MFS Institutional Money Market Portfolio, 1.71% (v) (Identified Cost, $420,694) | 420,742 | $ | 420,700 | |||||
Other Assets, Less Liabilities - 1.0% | 2,220,932 | |||||||
Net Assets - 100.0% | $ | 229,242,917 |
See Portfolio Footnotes and Notes to Financial Statements
36
Table of Contents
PORTFOLIO OF INVESTMENTS
3/31/18
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 - 97.9% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 6.1% | ||||||||
Charlotte, NC, Airport Rev. (Charlotte/Douglas International Airport), “A”, 4.75%, 7/01/2028 | $ | 1,250,000 | $ | 1,324,475 | ||||
Charlotte, NC, Airport Rev. (Charlotte/Douglas International Airport), “A”, 5%, 7/01/2036 | 3,000,000 | 3,251,730 | ||||||
Charlotte, NC, Airport Rev. (Charlotte/Douglas International Airport), “B”, 5%, 7/01/2042 | 1,000,000 | 1,133,600 | ||||||
Charlotte, NC, Airport Rev. (Charlotte/Douglas International Airport), “B”, 5%, 7/01/2047 | 2,000,000 | 2,258,700 | ||||||
Charlotte, NC, Douglas International Airport Rev, “A”, 5%, 7/01/2032 | 1,245,000 | 1,406,190 | ||||||
Chicago, IL, O’Hare International Airport Rev., Third Lien, “A”, 5.625%, 1/01/2035 (Prerefunded 1/01/2021) | 860,000 | 946,946 | ||||||
Chicago, IL, O’Hare International Airport Rev., Third Lien, “A”, 5.625%, 1/01/2035 | 195,000 | 212,250 | ||||||
Dallas and Fort Worth, TX, International Airport Rev., “B”, 5%, 11/01/2044 | 440,000 | 481,312 | ||||||
Dallas and Fort Worth, TX, International Airport Rev., “C”, 5%, 11/01/2045 | 305,000 | 330,391 | ||||||
New York, NY, Transportation Development Corp. Special Facilities Rev. (LaGuardia Airport Terminal B Redevelopment Project), “A”, AGM, 4%, 7/01/2037 | 2,185,000 | 2,251,905 | ||||||
Raleigh Durham, NC, Airport Authority Rev., “A”, 5%, 5/01/2036 | 3,440,000 | 3,643,166 | ||||||
Raleigh Durham, NC, Airport Authority Rev., “A”, 5%, 5/01/2036 | 2,000,000 | 2,283,320 | ||||||
Raleigh Durham, NC, Airport Authority Rev., “A”, 5%, 5/01/2037 | 2,000,000 | 2,278,240 | ||||||
San Francisco, CA, City & County Airports Commission, International Airport Rev., “B”, 5%, 5/01/2046 | 1,445,000 | 1,612,475 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, 5%, 12/01/2044 | 175,000 | 192,652 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, BAM, 5%, 12/01/2039 | 195,000 | 215,284 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/2039 | 150,000 | 163,445 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/2044 | 240,000 | 260,767 | ||||||
$ | 24,246,848 | |||||||
General Obligations - General Purpose - 4.1% | ||||||||
Cary, NC, “B”, 5%, 6/01/2025 | $ | 1,220,000 | $ | 1,442,491 | ||||
Commonwealth of Massachusetts, General Obligation Consolidated Loan, “G”, 3%, 9/01/2046 | 3,110,000 | 2,730,145 |
Issuer | Shares/Par | Value ($) | ||||||
General Obligations - General Purpose - continued | ||||||||
Commonwealth of Puerto Rico, Public Improvement, “A”, AGM, 5%, 7/01/2035 | $ | 915,000 | $ | 941,343 | ||||
Guam Government, “A”, 6.75%, 11/15/2029 (Prerefunded 11/15/2019) | 240,000 | 258,720 | ||||||
Guam Government, “A”, 7%, 11/15/2039 (Prerefunded 11/15/2019) | 265,000 | 286,719 | ||||||
Guilford, NC, General Obligation Public Improvement, “B”, 5%, 5/01/2030 | 1,665,000 | 1,998,150 | ||||||
Mecklenburg County, NC, Public Improvement, “A”, 4%, 4/01/2029 | 3,765,000 | 4,137,735 | ||||||
New Hanover County, NC, Public Improvement, “A”, 5%, 8/01/2030 (Prerefunded 8/01/2020) | 2,000,000 | 2,149,480 | ||||||
Puerto Rico Public Buildings Authority Rev., “M-2”, AMBAC, 10%, 7/01/2035 | 625,000 | 654,056 | ||||||
State of Illinois, 5%, 11/01/2027 | 855,000 | 889,286 | ||||||
State of Illinois, “D”, 5%, 11/01/2028 | 805,000 | 835,373 | ||||||
$ | 16,323,498 | |||||||
General Obligations - Schools - 0.8% | ||||||||
Montebello, CA, Unified School District (Election of 2016), “A”, 4%, 8/01/2046 | $ | 1,655,000 | $ | 1,702,200 | ||||
San Mateo County, CA, (Redwood City School District) General Obligation Bonds, 3%, 8/01/2041 | 1,675,000 | 1,518,572 | ||||||
$ | 3,220,772 | |||||||
Healthcare Revenue - Hospitals - 20.6% | ||||||||
California Health Facilities Financing Authority Rev. (Stanford Health System), “A”, 4%, 11/15/2040 | $ | 1,230,000 | $ | 1,275,744 | ||||
Charlotte-Mecklenburg, NC, Hospital Authority Health Care System Rev. (Carolinas Health Care System), “A”, 5.25%, 1/15/2034 | 4,000,000 | 4,106,760 | ||||||
Charlotte-Mecklenburg, NC, Hospital Authority Health Care System Rev. (Carolinas Health Care System), “A”, 5%, 1/15/2040 | 3,000,000 | 3,351,780 | ||||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 7%, 8/15/2044 (Prerefunded 8/15/2019) | 1,140,000 | 1,219,960 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.25%, 7/01/2031 | 360,000 | 370,577 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.375%, 7/01/2041 | 525,000 | 537,175 | ||||||
Miami-Dade County, FL, Health Facilities Authority Hospital Rev., 6%, 8/01/2030 (Prerefunded 8/01/2020) | 225,000 | 245,848 | ||||||
Miami-Dade County, FL, Health Facilities Authority Hospital Rev., Unfunded Balance, 6%, 8/01/2030 | 85,000 | 91,663 |
37
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A���, 6%, 10/01/2027 (Prerefunded 10/01/2019) | $ | 790,000 | $ | 839,312 | ||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6.125%, 10/01/2039 (Prerefunded 10/01/2019) | 1,110,000 | 1,181,329 | ||||||
New Hampshire Business Finance Authority Rev. (Huggins Hospital), 6.875%, 10/01/2039 (Prerefunded 10/01/2019) | 50,000 | 53,525 | ||||||
New Hanover County, NC, Hospital Rev. (New Hanover Regional Medical Center), 5%, 10/01/2036 | 1,500,000 | 1,707,705 | ||||||
New Hanover County, NC, Hospital Rev. (New Hanover Regional Medical Center), 5%, 10/01/2047 | 2,425,000 | 2,695,969 | ||||||
New Jersey Health Care Facilities, Financing Authority Rev. (University Hospital), “A”, AGM, 5%, 7/01/2046 | 320,000 | 352,614 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Appalachian Regional Healthcare System), “A”, 6.375%, 7/01/2026 | 2,000,000 | 2,190,220 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Appalachian Regional Healthcare System), “A”, 6.5%, 7/01/2031 | 1,000,000 | 1,097,630 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Cleveland County HealthCare System), 5.75%, 1/01/2035 (Prerefunded 1/01/2021) | 800,000 | 882,408 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Duke University Health System), “A”, 5%, 6/01/2035 (Prerefunded 6/01/2020) | 1,620,000 | 1,733,287 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Duke University Health System), “A”, 5%, 6/01/2042 | 2,420,000 | 2,641,575 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Duke University Health System), “A”, 5%, 6/01/2042 (Prerefunded 6/01/2019) | 3,500,000 | 3,635,870 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Duke University Health System), “D”, 4%, 6/01/2035 | 1,250,000 | 1,319,437 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Novant Health Obligation Group), “A”, 5.25%, 11/01/2040 | 3,000,000 | 3,233,520 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Rex Healthcare), “A”, 5%, 7/01/2030 | 5,250,000 | 5,529,825 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Vidant Health), 5%, 6/01/2031 | 2,800,000 | 3,167,976 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Vidant Health), 5%, 6/01/2033 | 3,000,000 | 3,377,760 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Vidant Health), 5%, 6/01/2045 | $ | 2,500,000 | $ | 2,763,950 | ||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (WakeMed), “A”, 5%, 10/01/2031 | 4,355,000 | 4,795,639 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev., “A”, 5%, 10/01/2038 | 1,825,000 | 1,997,481 | ||||||
North Carolina Medical Care Commission, Health System Rev. (Mission Health Combined Group), 5%, 10/01/2034 | 1,300,000 | 1,343,680 | ||||||
North Carolina Medical Care Commission, Health System Rev. (Mission Health Combined Group), 5%, 10/01/2036 | 2,000,000 | 2,066,880 | ||||||
North Carolina Medical Care Commission, Health System Rev. (Mission Health Combined Group), 5%, 10/01/2036 | 1,565,000 | 1,617,584 | ||||||
North Carolina Medical Care Commission, Hospital Rev. (The North Carolina Baptist Hospitals, Inc.), 5.25%, 6/01/2029 | 2,215,000 | 2,368,898 | ||||||
North Carolina Medical Care Commission, Hospital Rev. (The North Carolina Baptist Hospitals, Inc.), 5%, 6/01/2034 | 2,000,000 | 2,117,060 | ||||||
Northern Hospital District, Surry County, NC, Health Care Facilities Rev., 5%, 10/01/2035 | 1,515,000 | 1,584,917 | ||||||
Northern Hospital District, Surry County, NC, Health Care Facilities Rev., 5%, 10/01/2038 | 1,065,000 | 1,111,636 | ||||||
Royal Oak, MI, Hospital Finance Authority Rev. (William Beaumont Hospital), “V”, 8.25%, 9/01/2039 (Prerefunded 9/01/2018) | 2,040,000 | 2,095,488 | ||||||
St. Petersburg, FL, Health Facilities Authority (All Children Hospital), “A”, 6.5%, 11/15/2039 (Prerefunded 11/15/2019) | 470,000 | 504,559 | ||||||
University of North Carolina Board of Governors, Hospitals at Chapel Hill Rev., 5%, 2/01/2046 | 6,500,000 | 7,233,525 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 6.75%, 7/01/2029 (Prerefunded 7/01/2019) | 270,000 | 285,949 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 7%, 7/01/2039 (Prerefunded 7/01/2019) | 635,000 | 674,453 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (ProHealth Care, Inc. Obligated Group), 6.625%, 2/15/2039 (Prerefunded 2/15/2019) | 2,195,000 | 2,286,378 | ||||||
$ | 81,687,546 | |||||||
Healthcare Revenue - Long Term Care - 5.7% | ||||||||
North Carolina Medical Care Commission Retirement Facilities First Mortgage Rev. (Aldersgate), 5%, 7/01/2045 | $ | 1,000,000 | $ | 1,058,430 | ||||
North Carolina Medical Care Commission Retirement Facilities First Mortgage Rev. (Aldersgate), “A”, 5%, 7/01/2047 | 1,000,000 | 1,070,200 |
38
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Long Term Care - continued | ||||||||
North Carolina Medical Care Commission Retirement Facilities First Mortgage Rev. (Carolina Village Project), “B”, 5%, 4/01/2047 | $ | 2,000,000 | $ | 2,098,940 | ||||
North Carolina Medical Care Commission Retirement Facilities First Mortgage Rev. (Southminster), 5%, 10/01/2031 | 800,000 | 869,736 | ||||||
North Carolina Medical Care Commission Retirement Facilities First Mortgage Rev. (Southminster), 5%, 10/01/2037 | 2,200,000 | 2,362,030 | ||||||
North Carolina Medical Care Commission Retirement Facilities First Mortgage Rev. (United Church Homes and Services), “A”, 5%, 9/01/2037 | 1,500,000 | 1,603,275 | ||||||
North Carolina Medical Care Commission Retirement Facilities First Mortgage Rev. (United Methodist Retirement Homes), “A”, 5%, 10/01/2035 | 1,000,000 | 1,115,620 | ||||||
North Carolina Medical Care Commission, Health Care Facilities First Mortgage Rev. (Deerfield Episcopal Retirement Community), 5%, 11/01/2037 | 2,750,000 | 3,087,975 | ||||||
North Carolina Medical Care Commission, Health Care Facilities First Mortgage Rev. (Presbyterian Homes Obligated Group), 5%, 10/01/2031 | 1,000,000 | 1,126,740 | ||||||
North Carolina Medical Care Commission, Health Care Facilities First Mortgage Rev. (Presbyterian Homes Obligated Group), 5%, 10/01/2036 | 800,000 | 892,352 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Pennybyrn at Maryfield), 5%, 10/01/2035 | 1,500,000 | 1,589,445 | ||||||
North Carolina Medical Care Commission, Retirement Facilities First Mortgage Rev. (Salemtowne Project), 5.25%, 10/01/2037 | 1,500,000 | 1,586,535 | ||||||
North Carolina Medical Care Commission, Retirement Facilities Rev. (Galloway Ridge Project), “A”, 5.875%, 1/01/2031 | 480,000 | 503,760 | ||||||
North Carolina Medical Care Commission, Retirement Facilities Rev. (Galloway Ridge Project), “A”, 6%, 1/01/2039 | 1,520,000 | 1,593,142 | ||||||
North Carolina Medical Care Commission, Retirement Facilities Rev. (The United Methodist Retirement Homes), “A”, 5%, 10/01/2033 | 1,590,000 | 1,709,918 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), “A”, 7.25%, 9/15/2029 (Prerefunded 9/15/2019) | 35,000 | 37,723 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), “A”, 7.625%, 9/15/2039 (Prerefunded 9/15/2019) | 220,000 | 238,291 | ||||||
$ | 22,544,112 |
Issuer | Shares/Par | Value ($) | ||||||
Human Services - 0.3% | ||||||||
North Carolina Capital Facilities, Finance Agency Rev. (The Arc of North Carolina Projects), “A”, 5%, 10/01/2034 | $ | 1,000,000 | $ | 1,128,040 | ||||
Industrial Revenue - Paper - 0.3% | ||||||||
Columbus County, NC, Industrial Facilities & Pollution Control, Financing Authority Rev. (International Paper Co.), 5.7%, 5/01/2034 | $ | 1,000,000 | $ | 1,078,110 | ||||
Miscellaneous Revenue - Other - 1.7% | ||||||||
Durham County, NC, Industrial Facilities & Pollution Control Financing Authority Rev. (Research Triangle Institute), 5%, 2/01/2025 | $ | 1,000,000 | $ | 1,156,670 | ||||
Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/2040 | 420,000 | 450,547 | ||||||
Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/2044 | 640,000 | 684,966 | ||||||
New York Liberty Development Corp., Liberty Rev. (7 World Trade Center Project), 5%, 9/15/2040 | 3,145,000 | 3,460,097 | ||||||
Summit County, OH, Port Authority Building Rev. (Flats East Development Recovery Zone Facility Bonds), 6.875%, 5/15/2040 | 95,000 | 104,623 | ||||||
Texas Private Activity Surface Transportation Corp. Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 7%, 12/31/2038 | 435,000 | 511,551 | ||||||
Texas Private Activity Surface Transportation Corp. Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 6.75%, 6/30/2043 | 350,000 | 405,993 | ||||||
$ | 6,774,447 | |||||||
Multi-Family Housing Revenue - 0.1% | ||||||||
Mecklenburg County, NC (Little Rock Apartments), FNMA, 5.15%, 1/01/2022 | $ | 480,000 | $ | 482,045 | ||||
Port Revenue - 0.3% | ||||||||
North Carolina Ports Authority Facilities Rev., “A”, 5.25%, 2/01/2040 | $ | 1,000,000 | $ | 1,049,160 | ||||
Sales & Excise Tax Revenue - 1.7% | ||||||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6.5%, 1/15/2030 | $ | 1,675,000 | $ | 1,841,562 | ||||
Guam Government Business Privilege Tax Rev., “A”, 5.25%, 1/01/2036 | 1,140,000 | 1,186,934 | ||||||
Guam Government Business Privilege Tax Rev., “D”, 5%, 11/15/2031 | 2,385,000 | 2,512,931 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “A”, 5.5%, 8/01/2028 (Prerefunded 8/01/2019) | 15,000 | 15,745 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, AMBAC, 0%, 8/01/2054 | 1,145,000 | 147,453 |
39
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Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Sales & Excise Tax Revenue - continued | ||||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2042 | $ | 725,000 | $ | 168,475 | ||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2045 | 195,000 | 38,499 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2046 | 4,015,000 | 751,849 | ||||||
$ | 6,663,448 | |||||||
State & Local Agencies - 13.6% | ||||||||
Asheville, NC, Limited Obligation, 5%, 4/01/2028 | $ | 400,000 | $ | 446,664 | ||||
Cabarrus County, NC, Limited Obligation, 5%, 6/01/2029 | 1,100,000 | 1,301,146 | ||||||
Cabarrus County, NC, Limited Obligation, 5%, 6/01/2031 | 1,000,000 | 1,174,880 | ||||||
Cabarrus County, NC, Limited Obligation, 4%, 6/01/2034 | 1,000,000 | 1,068,800 | ||||||
California Public Works Board Lease Rev. (Department of Corrections), “E”, AGM, 3%, 10/01/2036 | 2,545,000 | 2,412,813 | ||||||
Charlotte, NC, COP (Equipment Acquisition and Public Facilities), “C”, 5%, 12/01/2018 | 3,870,000 | 3,957,655 | ||||||
Charlotte, NC, COP (NASCAR Hall of Fame), “C”, 5%, 6/01/2039 | 5,130,000 | 5,297,802 | ||||||
Charlotte, NC, COP (Transit Projects), 5%, 6/01/2033 | 3,000,000 | 3,015,570 | ||||||
Charlotte, NC, COP (Transit Projects/Phase II), “B”, 5%, 6/01/2026 | 1,250,000 | 1,459,938 | ||||||
Charlotte, NC, COP, “E”, 5%, 6/01/2026 | 760,000 | 788,698 | ||||||
Charlotte, NC, COP, “E”, 5%, 6/01/2034 | 2,000,000 | 2,067,060 | ||||||
Colorado State University Board of Governors, System Enterprise Refunding Rev., “E”, 4%, 3/01/2043 | 1,965,000 | 2,044,956 | ||||||
Commonwealth Financing Authority, PA, Tobacco Master Settlement Payment Rev., 5%, 6/01/2032 | 115,000 | 129,115 | ||||||
Commonwealth Financing Authority, PA, Tobacco Master Settlement Payment Rev., 5%, 6/01/2033 | 100,000 | 111,731 | ||||||
Commonwealth Financing Authority, PA, Tobacco Master Settlement Payment Rev., 5%, 6/01/2034 | 45,000 | 50,036 | ||||||
Delaware Valley, PA, Regional Finance Authority, “C”, FLR, 2.094% (LIBOR-3mo. + 0.75%), 6/01/2037 | 2,310,000 | 2,047,838 | ||||||
Harnett County, NC, COP, ASSD GTY, 5%, 6/01/2029 (Prerefunded 6/01/2019) | 400,000 | 415,292 | ||||||
Iredell County, NC, Public Facilities (School Projects), AGM, 5.125%, 6/01/2027 (Prerefunded 6/01/2018) | 3,230,000 | 3,248,831 | ||||||
Mecklenburg County, NC, COP, “A”, 5%, 2/01/2028 (Prerefunded 2/01/2019) | 350,000 | 359,856 | ||||||
Nash County, NC, Limited Obligation, ASSD GTY, 5%, 10/01/2030 | 2,000,000 | 2,156,960 |
Issuer | Shares/Par | Value ($) | ||||||
State & Local Agencies - continued | ||||||||
North Carolina Capital Improvement Obligation, “A”, 5%, 5/01/2026 (Prerefunded 5/01/2019) | $ | 1,450,000 | $ | 1,502,446 | ||||
Orange County, NC, Public Facilities Co., Limited Obligation, 5%, 10/01/2024 | 750,000 | 829,853 | ||||||
Pitt County, NC, Limited Obligation, “A”, 5%, 4/01/2035 (Prerefunded 4/01/2020) | 2,000,000 | 2,129,300 | ||||||
Salisbury, NC, COP, ASSD GTY, 5.625%, 3/01/2026 | 1,000,000 | 1,032,640 | ||||||
State Public School Building Authority, PA, School Lease Rev. (The School District of Philadelphia Project), “A”, AGM, 5%, 6/01/2033 | 2,530,000 | 2,827,351 | ||||||
Wake County, NC, Annual Appropriation Ltd., Obligation Bonds, “2009”, 5%, 6/01/2032 (Prerefunded 6/01/2019) | 3,000,000 | 3,116,460 | ||||||
Wake County, NC, Annual Appropriation Ltd., Obligation Bonds, “2010”, 5%, 1/01/2033 (Prerefunded 1/01/2020) | 6,000,000 | 6,341,940 | ||||||
Wilmington, NC, COP, “A”, 5%, 6/01/2038 | 2,650,000 | 2,664,919 | ||||||
$ | 54,000,550 | |||||||
Tax - Other - 1.4% | ||||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/2024 (Prerefunded 12/01/2019) | $ | 420,000 | $ | 445,591 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/2029 (Prerefunded 12/01/2019) | 145,000 | 154,427 | ||||||
Puerto Rico Convention Center District Authority, Hotel Occupancy Tax Rev., “A”, AMBAC, 5%, 7/01/2031 | 2,400,000 | 2,323,080 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2024 | 755,000 | 779,877 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2027 | 1,990,000 | 2,049,461 | ||||||
$ | 5,752,436 | |||||||
Tax Assessment - 0.3% | ||||||||
Mooresville, NC, Special Assessment Rev., 5.375%, 3/01/2040 | $ | 1,000,000 | $ | 987,900 | ||||
Tobacco - 1.1% | ||||||||
Buckeye, OH, Tobacco Settlement Financing Authority Rev., “A-3”, 6.25%, 6/01/2037 | $ | 1,295,000 | $ | 1,300,025 | ||||
Illinois Railsplitter Tobacco Settlement Authority Rev., 6%, 6/01/2028 (Prerefunded 6/01/2021) | 1,975,000 | 2,221,598 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.5%, 6/01/2023 | 845,000 | 848,228 | ||||||
$ | 4,369,851 | |||||||
Toll Roads - 2.1% | ||||||||
North Carolina Turnpike Authority, Monroe Expressway Toll Rev., “A”, 5%, 7/01/2047 | $ | 2,000,000 | $ | 2,186,160 |
40
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Toll Roads - continued | ||||||||
North Carolina Turnpike Authority, Triangle Expressway System Senior Lien Turnpike Rev., 5%, 1/01/2032 | $ | 1,150,000 | $ | 1,323,788 | ||||
North Carolina Turnpike Authority, Triangle Expressway System Senior Lien Turnpike Rev., AGM, 5%, 1/01/2039 | 2,600,000 | 2,948,036 | ||||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 6%, 1/01/2037 | 595,000 | 665,608 | ||||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 5.5%, 1/01/2042 | 1,160,000 | 1,267,451 | ||||||
$ | 8,391,043 | |||||||
Transportation - Special Tax - 3.2% | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “CC”, AGM, 5.5%, 7/01/2028 | $ | 2,185,000 | $ | 2,379,421 | ||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “CC”, AGM, 5.25%, 7/01/2036 | 850,000 | 905,760 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “D”, AGM, 5%, 7/01/2032 | 435,000 | 435,365 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “J”, NATL, 5%, 7/01/2029 | 65,000 | 62,771 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “L”, AMBAC, 5.25%, 7/01/2038 | 3,660,000 | 3,548,809 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “L”, NATL, 5.25%, 7/01/2035 | 970,000 | 922,392 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ETM, AGM, 6%, 7/01/2018 | 550,000 | 555,995 | ||||||
North Carolina Turnpike Authority, Monroe Connector System State Appropriation Rev., 5%, 7/01/2036 | 3,000,000 | 3,265,470 | ||||||
Virgin Islands Public Finance Authority Rev. (Federal Highway Grant Anticipation Loan Note), 5%, 9/01/2033 | 625,000 | 659,463 | ||||||
$ | 12,735,446 | |||||||
Universities - Colleges - 18.8% | ||||||||
East Carolina University, NC, General Rev., “A”, 4%, 10/01/2045 | $ | 2,195,000 | $ | 2,267,852 | ||||
Florida State University Board of Governors, System Improvement Rev., 6.25%, 7/01/2030 (Prerefunded 7/01/2018) | 1,000,000 | 1,021,400 | ||||||
Illinois Finance Authority Rev. (Roosevelt University Project), 6.25%, 4/01/2029 | 2,000,000 | 2,093,400 | ||||||
North Carolina Agricultural & Technical University Rev., “A”, 5%, 10/01/2035 | 3,075,000 | 3,496,090 | ||||||
North Carolina Capital Facilities Finance Agency, Educational Facilities Rev. (High Point University), 5.25%, 3/01/2033 | 1,000,000 | 1,066,280 |
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
North Carolina Capital Facilities Finance Agency, Educational Facilities Rev. (Meredith College), 6%, 6/01/2031 | $ | 3,145,000 | $ | 3,167,581 | ||||
North Carolina Capital Facilities Finance Agency, Educational Facilities Rev. (Meredith College), 4%, 6/01/2034 | 1,370,000 | 1,386,139 | ||||||
North Carolina Capital Facilities Finance Agency, Educational Facilities Rev. (Meredith College) , 6%, 6/01/2031 (Prerefunded 6/01/2018) | 95,000 | 95,687 | ||||||
North Carolina Capital Facilities Finance Agency, Educational Facilities Rev. (Wake Forest University), 5%, 1/01/2028 (Prerefunded 1/01/2019) | 980,000 | 1,004,902 | ||||||
North Carolina Capital Facilities Finance Agency, Educational Facilities Rev. (Wake Forest University), 5%, 1/01/2029 (Prerefunded 1/01/2019) | 865,000 | 886,980 | ||||||
North Carolina Capital Facilities Finance Agency, Educational Facilities Rev. (Wake Forest University), 5%, 1/01/2031 (Prerefunded 1/01/2019) | 2,000,000 | 2,050,820 | ||||||
North Carolina Capital Facilities Finance Agency, Educational Facilities Rev. (Wake Forest University), 5%, 1/01/2038 (Prerefunded 1/01/2019) | 1,000,000 | 1,025,410 | ||||||
North Carolina Capital Facilities, Finance Agency Rev. (Davidson College), 5%, 3/01/2045 | 1,500,000 | 1,627,785 | ||||||
North Carolina Capital Facilities, Finance | ||||||||
Agency Rev. (Duke University), “A”, 5%, 10/01/2038 (Prerefunded 4/01/2019) | 2,500,000 | 2,584,025 | ||||||
North Carolina Capital Facilities, Finance Agency Rev. (Duke University), “B”, 5%, 10/01/2044 | 4,955,000 | 5,721,340 | ||||||
Pennsylvania Higher Educational Facilities Authority Rev., AGM, 3%, 6/15/2045 | 1,910,000 | 1,678,145 | ||||||
Pennsylvania Higher Educational Facilities Authority Rev., BAM, 3%, 6/15/2045 | 1,785,000 | 1,568,319 | ||||||
Pinellas County, FL, Educational Facilities Authority Rev. (Barry University), 6%, 10/01/2041 | 450,000 | 487,008 | ||||||
Puerto Rico Industrial Tourist Authority (University Plaza), “A”, NATL, 5%, 7/01/2020 | 2,180,000 | 2,180,741 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.125%, 4/01/2032 | 170,000 | 150,875 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.375%, 4/01/2042 | 275,000 | 236,500 | ||||||
Puerto Rico Industrial, Tourist, Medical, & Environmental Central Facilities (University of Sacred Heart), 4.375%, 10/01/2031 | 115,000 | 81,362 |
41
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
Puerto Rico Industrial, Tourist, Medical, & Environmental Central Facilities (University of Sacred Heart), 5%, 10/01/2042 | $ | 55,000 | $ | 37,881 | ||||
Red River, TX, Education Finance Corp., Higher Education Rev. (Houston Baptist University Project), 5.5%, 10/01/2046 | 735,000 | 807,633 | ||||||
University of North Carolina at Greensboro, General Obligation Refunding Rev., 4%, 4/01/2036 | 750,000 | 798,330 | ||||||
University of North Carolina, Chapel Hill, “A”, ASSD GTY, 5%, 4/01/2034 (Prerefunded 4/01/2019) | 200,000 | 206,722 | ||||||
University of North Carolina, Charlotte, Rev., 5%, 4/01/2043 | 1,715,000 | 1,928,929 | ||||||
University of North Carolina, Charlotte, Rev., “A”, 4%, 10/01/2040 | 6,310,000 | 6,604,551 | ||||||
University of North Carolina, Greensboro, Rev., 5%, 4/01/2026 | 3,000,000 | 3,277,710 | ||||||
University of North Carolina, Greensboro, Rev., 4%, 4/01/2035 | 1,000,000 | 1,068,850 | ||||||
University of North Carolina, Greensboro, Rev., 5%, 4/01/2039 | 2,000,000 | 2,261,280 | ||||||
University of North Carolina, Raleigh, Rev., “A”, 5%, 10/01/2029 | 5,000,000 | 5,682,000 | ||||||
University of North Carolina, Systems Pool Rev. (General Trust Indenture), “B”, 5.125%, 10/01/2034 (Prerefunded 10/01/2019) | 2,000,000 | 2,102,180 | ||||||
University of North Carolina, Systems Pool Rev. (General Trust Indenture), “C”, 5.5%, 10/01/2034 (Prerefunded 10/01/2019) | 1,890,000 | 1,995,537 | ||||||
University of North Carolina, Systems Pool Rev., “B-1”, 5.25%, 4/01/2024 | 1,615,000 | 1,726,968 | ||||||
University of North Carolina, Systems Pool Rev., “B-1”, 5.25%, 4/01/2025 | 1,705,000 | 1,822,509 | ||||||
Virginia College Building Authority, Educational Facilities Rev. (Marymount University), “B”, 5.25%, 7/01/2035 | 195,000 | 210,187 | ||||||
Western Carolina University, NC, General Obligation Rev., 5%, 10/01/2043 | 3,700,000 | 4,265,582 | ||||||
Winston Salem State University, NC, General Rev., AGM, 5%, 10/01/2042 | 2,470,000 | 2,827,211 | ||||||
Winston-Salem State University, NC, General Rev., 5%, 4/01/2033 | 1,000,000 | 1,084,560 | ||||||
$ | 74,587,261 | |||||||
Universities - Dormitories - 2.0% | ||||||||
Oklahoma Development Finance Authority, First Mortgage Rev. (Provident Education Resources, Inc.- Cross Village Student Housing Project), 5%, 8/01/2052 | $ | 515,000 | $ | 547,723 | ||||
Oklahoma Development Finance Authority, First Mortgage Rev. (Provident Education Resources, Inc.- Cross Village Student Housing Project), 5.25%, 8/01/2057 | 595,000 | 639,441 |
Issuer | Shares/Par | Value ($) | ||||||
Universities - Dormitories - continued | ||||||||
University of North Carolina, Wilmington, Limited Obligation (Student Housing Projects), 4%, 6/01/2032 | $ | 500,000 | $ | 531,470 | ||||
University of North Carolina, Wilmington, Limited Obligation (Student Housing Projects), 4%, 6/01/2033 | 400,000 | 422,220 | ||||||
University of North Carolina, Wilmington, Limited Obligation (Student Housing Projects), 4%, 6/01/2034 | 500,000 | 526,310 | ||||||
University of North Carolina, Wilmington, Limited Obligation, Refunding Student Housing Projects, 5%, 6/01/2028 | 3,045,000 | 3,500,288 | ||||||
Winston-Salem State University, NC, Student Housing Project Rev., 5%, 6/01/2029 | 1,550,000 | 1,702,102 | ||||||
$ | 7,869,554 | |||||||
Utilities - Municipal Owned - 1.6% | ||||||||
Long Island, NY, Power Authority, Electric Systems Rev., “A”, 6%, 5/01/2033 (Prerefunded 5/01/2019) | $ | 520,000 | $ | 544,112 | ||||
North Carolina Municipal Power Agency No. 1, Catawba Electric Rev., “A”, 5%, 1/01/2030 (Prerefunded 1/01/2019) | 1,780,000 | 1,825,230 | ||||||
North Carolina Municipal Power Agency No. 1, Catawba Electric Rev., “A”, 5%, 1/01/2030 | 720,000 | 736,726 | ||||||
Puerto Rico Electric Power Authority Rev., “V”, AGM, 5.25%, 7/01/2027 | 2,325,000 | 2,486,355 | ||||||
Puerto Rico Electric Power Authority Rev., “VV”, NATL, 5.25%, 7/01/2029 | 340,000 | 335,434 | ||||||
Puerto Rico Electric Power Authority Rev., “VV”, NATL, 5.25%, 7/01/2030 | 415,000 | 406,891 | ||||||
Puerto Rico Electric Power Authority Rev., “VV”, NATL, 5.25%, 7/01/2032 | 65,000 | 62,862 | ||||||
$ | 6,397,610 | |||||||
Utilities - Other - 1.5% | ||||||||
California M-S-R Energy Authority Gas Rev., “A”, 6.5%, 11/01/2039 | $ | 1,695,000 | $ | 2,380,356 | ||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2019 | 1,055,000 | 1,102,760 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2026 | 1,290,000 | 1,500,154 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “C”, 5%, 2/01/2021 | 805,000 | 866,905 | ||||||
Texas Gas Acquisition & Supply Corp III., Gas Supply Rev., 5%, 12/15/2031 | 255,000 | 278,595 | ||||||
$ | 6,128,770 | |||||||
Water & Sewer Utility Revenue - 10.6% | ||||||||
Cape Fear Public Utility Authority, Water & Sewer System Rev., 5%, 8/01/2035 (Prerefunded 8/01/2018) | $ | 3,000,000 | $ | 3,034,230 | ||||
Cape Fear Public Utility Authority, Water & Sewer System Rev., 5%, 8/01/2036 (Prerefunded 8/01/2021) | 4,410,000 | 4,853,205 | ||||||
Cape Fear Public Utility Authority, Water & Sewer System Rev., 5%, 6/01/2040 | 1,250,000 | 1,409,862 |
42
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - continued | ||||||||
Charlotte, NC, Water & Sewer Systems Rev., 5%, 7/01/2026 | $ | 3,000,000 | $ | 3,026,640 | ||||
Durham County, NC, Enterprise Systems Rev., 5%, 6/01/2029 (Prerefunded 6/01/2021) | 1,590,000 | 1,745,120 | ||||||
Fayetteville, NC, Public Works Commission Rev., “B”, 5%, 3/01/2035 (Prerefunded 3/01/2019) | 1,750,000 | 1,801,642 | ||||||
Greensboro, NC, Enterprise Systems Rev., “A”, 4%, 6/01/2047 | 2,000,000 | 2,098,540 | ||||||
Greenville, NC, Utilities Commission, Combined Enterprise System Rev., “A”, AGM, 5%, 11/01/2033 (Prerefunded 11/01/2018) | 2,400,000 | 2,447,832 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 7/01/2036 | 220,000 | 236,133 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 7/01/2036 | 380,000 | 410,780 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 7/01/2037 | 480,000 | 517,872 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 7/01/2040 | 1,325,000 | 1,423,156 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 1/01/2046 | 1,000,000 | 1,062,740 | ||||||
High Point, NC, Combined Enterprise System Rev., AGM, 5%, 11/01/2033 (Prerefunded 11/01/2018) | 2,000,000 | 2,039,860 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Sewage Disposal System Rev. Refunding Second Lien Local Project), “C-7”, NATL, 5%, 7/01/2032 | 95,000 | 104,775 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Second Lien Local Project), “D-6”, NATL, 5%, 7/01/2036 | 115,000 | 125,741 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Senior Lien Local Project), “D-1”, AGM, 5%, 7/01/2035 | 60,000 | 66,604 |
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - continued | ||||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Senior Lien Local Project), “D-1”, AGM, 5%, 7/01/2037 | $ | 140,000 | $ | 155,158 | ||||
Oak Island, NC, Enterprise System Rev., AGM, 5%, 6/01/2025 | 2,010,000 | 2,344,705 | ||||||
Oak Island, NC, Enterprise System Rev., AGM, 5%, 6/01/2028 | 500,000 | 585,240 | ||||||
Oak Island, NC, Enterprise System Rev., AGM, 5%, 6/01/2029 | 1,400,000 | 1,607,354 | ||||||
Oak Island, NC, Enterprise System Rev., AGM, 5%, 6/01/2031 | 1,600,000 | 1,828,032 | ||||||
Oak Island, NC, Enterprise System Rev., ASSD GTY, 5.625%, 6/01/2030 (Prerefunded 6/01/2020) | 500,000 | 541,010 | ||||||
Oak Island, NC, Enterprise System Rev., ASSD GTY, 6%, 6/01/2034 (Prerefunded 6/01/2019) | 1,000,000 | 1,049,680 | ||||||
Oak Island, NC, Enterprise System Rev., ASSD GTY, 5.75%, 6/01/2036 (Prerefunded 6/01/2020) | 800,000 | 867,728 | ||||||
Raleigh, NC, Combined Enterprise Systems Rev., “A”, 5%, 3/01/2029 | 3,145,000 | 3,546,491 | ||||||
Winston-Salem, NC, Water & Sewer Systems Rev., 4%, 6/01/2034 | 700,000 | 754,523 | ||||||
Winston-Salem, NC, Water & Sewer Systems Rev., 5%, 6/01/2034 (Prerefunded 6/01/2019) | 2,000,000 | 2,077,640 | ||||||
Winston-Salem, NC, Water & Sewer Systems Rev., 4%, 6/01/2035 | 500,000 | 537,285 | ||||||
$ | 42,299,578 | |||||||
Total Municipal Bonds (Identified Cost, $379,855,293) | $ | 388,718,025 | ||||||
Investment Companies (h) - 1.3% | ||||||||
Money Market Funds - 1.3% | ||||||||
MFS Institutional Money Market Portfolio, 1.71% (v) (Identified Cost, $5,281,869) | 5,282,886 | $ | 5,282,358 | |||||
Other Assets, Less Liabilities - 0.8% | 3,293,776 | |||||||
Net Assets - 100.0% | $ | 397,294,159 |
See Portfolio Footnotes and Notes to Financial Statements
43
Table of Contents
PORTFOLIO OF INVESTMENTS
3/31/18
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 - 100.3% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 3.1% | ||||||||
Chicago, IL, O’Hare International Airport Rev., Senior Lien, “B”, 5%, 1/01/2030 | $ | 215,000 | $ | 242,608 | ||||
Chicago, IL, O’Hare International Airport Rev., Third Lien, “A”, 5.625%, 1/01/2035 (Prerefunded 1/01/2021) | 270,000 | 297,297 | ||||||
Chicago, IL, O’Hare International Airport Rev., Third Lien, “A”, 5.625%, 1/01/2035 | 65,000 | 70,750 | ||||||
Philadelphia, PA, Airport Rev., “A”, AGM, 5%, 6/15/2040 | 2,000,000 | 2,109,840 | ||||||
Philadelphia, PA, Airport Rev., “B”, 5%, 7/01/2034 | 750,000 | 846,375 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, 5%, 12/01/2044 | 55,000 | 60,548 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, BAM, 5%, 12/01/2039 | 65,000 | 71,761 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/2039 | 45,000 | 49,033 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/2044 | 80,000 | 86,923 | ||||||
$ | 3,835,135 | |||||||
General Obligations - General Purpose - 5.2% | ||||||||
Commonwealth of Puerto Rico, “A”, NATL, 5.5%, 7/01/2020 | $ | 325,000 | $ | 329,768 | ||||
Commonwealth of Puerto Rico, Public Improvement Refunding, “A-4”, AGM, 5%, 7/01/2031 | 100,000 | 103,350 | ||||||
Commonwealth of Puerto Rico, Public Improvement, “A”, AGM, 5%, 7/01/2035 | 315,000 | 324,069 | ||||||
Guam Government, “A”, 6.75%, 11/15/2029 (Prerefunded 11/15/2019) | 75,000 | 80,850 | ||||||
Guam Government, “A”, 7%, 11/15/2039 (Prerefunded 11/15/2019) | 90,000 | 97,376 | ||||||
Penn Hills, PA, Capital Appreciation, “D”, 0%, 12/01/2032 | 595,000 | 349,104 | ||||||
Philadelphia, PA, Authority For Industrial Development City Agreement Rev. (Cultural and Commercial Corridors Program), “A”, 5%, 12/01/2031 | 1,000,000 | 1,121,400 | ||||||
Puerto Rico Public Buildings Authority Rev., “H”, AMBAC, 5.5%, 7/01/2018 | 430,000 | 431,875 | ||||||
Puerto Rico Public Buildings Authority Rev., Guaranteed (Government Facilities), “I”, ASSD GTY, 5%, 7/01/2036 | 25,000 | 25,006 | ||||||
Puerto Rico Public Buildings Authority Rev., Guaranteed, “D”, AMBAC, 5.45%, 7/01/2030 | 165,000 | 165,005 | ||||||
Reading, Berks County, PA, General Obligation, BAM, 5%, 11/01/2030 | 1,000,000 | 1,138,600 |
Issuer | Shares/Par | Value ($) | ||||||
General Obligations - General Purpose - continued | ||||||||
Reading, Berks County, PA, General Obligation, BAM, 5%, 11/01/2031 | $ | 1,000,000 | $ | 1,133,330 | ||||
Township of Cranberry Butler County, PA, 5%, 10/01/2035 | 1,000,000 | 1,156,580 | ||||||
$ | 6,456,313 | |||||||
General Obligations - Schools - 10.1% | ||||||||
Allegheny County, PA, Deer Lakes School District , ASSD GTY, 5.375%, 4/01/2034 (Prerefunded 4/01/2019) | $ | 1,275,000 | $ | 1,321,270 | ||||
Berks County, PA, Reading School District, AGM, 5%, 3/01/2038 | 1,000,000 | 1,119,640 | ||||||
Carlisle, PA, School District, 5%, 9/01/2026 (Prerefunded 3/01/2022) | 1,000,000 | 1,114,300 | ||||||
Centre County, PA, State College Area School District General Obligation , 5%, 5/15/2044 | 1,000,000 | 1,153,020 | ||||||
Conneaut, PA, School District, Capital Appreciation, “B”, AGM, 0%, 11/01/2031 | 1,150,000 | 719,877 | ||||||
Conneaut, PA, School District, Capital Appreciation, “B”, AGM, 0%, 11/01/2033 | 760,000 | 434,606 | ||||||
Daniel Boone, PA, School District Rev., 5%, 8/15/2032 (Prerefunded 8/15/2018) | 160,000 | 161,982 | ||||||
Daniel Boone, PA, School District Rev., 5%, 8/15/2032 (Prerefunded 8/15/2018) | 110,000 | 111,363 | ||||||
Daniel Boone, PA, School District Rev., 5%, 8/15/2032 (Prerefunded 8/15/2018) | 220,000 | 222,726 | ||||||
Daniel Boone, PA, School District Rev., 5%, 8/15/2032 (Prerefunded 8/15/2018) | 10,000 | 10,126 | ||||||
Montebello, CA, Unified School District (Election of 2016), “A”, 4%, 8/01/2046 | 545,000 | 560,543 | ||||||
Northampton County, PA, Area School District, “A”, 5%, 10/01/2033 | 1,000,000 | 1,103,860 | ||||||
Philadelphia, PA, School District, “F”, 5%, 9/01/2038 | 1,500,000 | 1,654,620 | ||||||
Reading, PA, School District, “A”, 5%, 4/01/2020 | 665,000 | 700,737 | ||||||
Scranton, PA, School District, “E”, BAM, 5%, 12/01/2034 | 1,000,000 | 1,129,890 | ||||||
Whitehall-Coplay, PA, School District Prerefunded, “A“ , AGM, 5.375%, 11/15/2034 (Prerefunded 5/15/2019) | 905,000 | 942,132 | ||||||
Whitehall-Coplay, PA, School District Unrefunded Balance, “A“ , AGM, 5.375%, 11/15/2034 | 95,000 | 98,307 | ||||||
$ | 12,558,999 | |||||||
Healthcare Revenue - Hospitals - 18.2% | ||||||||
Allegheny County, PA, Hospital Development Authority Rev. (University of Pittsburgh Medical Center), “A”, 5.375%, 8/15/2029 | $ | 1,000,000 | $ | 1,045,810 |
44
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Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Berks County, PA, Municipal Authority Rev. (Reading Hospital & Medical Center), “A”, 5%, 11/01/2040 | $ | 1,500,000 | $ | 1,601,820 | ||||
Butler County, PA, Hospital Authority Rev. (Butler Health System), 7.25%, 7/01/2039 (Prerefunded 7/01/2019) | 500,000 | 533,560 | ||||||
California Health Facilities Financing Authority Rev. (Stanford Health System), “A”, 4%, 11/15/2040 | 385,000 | 399,318 | ||||||
Centre County, PA, Hospital Authority Rev. (Mount Nittany Medical Center), 5%, 11/15/2041 | 850,000 | 933,971 | ||||||
Centre County, PA, Hospital Authority Rev. (Mount Nittany Medical Center), 6.25%, 11/15/2041 (Prerefunded 11/15/2021) | 500,000 | 575,660 | ||||||
Chester County, PA, Health & Education Facilities Authority Health System Rev. (Jefferson Health System), “A”, 5%, 5/15/2040 (Prerefunded 5/15/2020) | 735,000 | 784,568 | ||||||
Chester County, PA, Health & Education Facilities Authority Health System Rev. (Jefferson Health System), “A”, 5%, 5/15/2040 | 265,000 | 278,960 | ||||||
Chester County, PA, Health & Education Facilities Authority Health System Rev. (Main Line Health System), “A”, 5%, 10/01/2035 | 500,000 | 574,515 | ||||||
Dauphin County, PA, General Authority Health System Rev. (Pinnacle Health System), 5.75%, 6/01/2020 (Prerefunded 6/01/2019) | 445,000 | 458,096 | ||||||
Dauphin County, PA, General Authority Health System Rev. (Pinnacle Health System), 5.75%, 6/01/2020 | 305,000 | 318,847 | ||||||
DeKalb County, GA, Hospital Authority Rev. (DeKalb Medical Center, Inc.), 6.125%, 9/01/2040 | 305,000 | 326,707 | ||||||
Escambia County, FL, Health Facilities Authority (Baptist Hospital, Inc.), “A”, 6%, 8/15/2036 | 705,000 | 760,321 | ||||||
Fulton County, PA, Industrial Development Authority Hospital Rev. (Medical Center Project), 5%, 7/01/2040 | 500,000 | 504,335 | ||||||
Illinois Finance Authority Rev. (Provena Health), “A”, 6%, 5/01/2028 (Prerefunded 5/01/2020) | 500,000 | 542,740 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.25%, 7/01/2031 | 165,000 | 169,848 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.375%, 7/01/2041 | 150,000 | 153,479 | ||||||
Kentucky Economic Development Finance Authority Hospital Rev. (Owensboro Medical Health System, Inc.), “A”, 6.375%, 6/01/2040 (Prerefunded 6/01/2020) | 390,000 | 426,855 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Kentucky Economic Development Finance Authority, Hospital Rev. (Owensboro Medical Health System, Inc.), “A”, 5.75%, 6/01/2025 (Prerefunded 6/01/2020) | $ | 335,000 | $ | 362,246 | ||||
Lancaster County, PA, Hospital Authority Rev. (University of Pennsylvania Health System), “A”, 5%, 8/15/2036 | 1,000,000 | 1,139,040 | ||||||
Lycoming County, PA, Health Authority Rev. (Susquehanna Health System), “A”, 5.75%, 7/01/2039 | 750,000 | 786,083 | ||||||
Miami-Dade County, FL, Health Facilities Authority Hospital Rev., 6%, 8/01/2030 (Prerefunded 8/01/2020) | 80,000 | 87,413 | ||||||
Miami-Dade County, FL, Health Facilities Authority Hospital Rev., Unfunded Balance, 6%, 8/01/2030 | 25,000 | 26,960 | ||||||
Montgomery County, PA, Industrial Development Authority Rev. (Albert Einstein Healthcare Network Issue), “A”, 5.25%, 1/15/2030 | 500,000 | 542,030 | ||||||
Montour County, PA, Geisinger Authority Health System Rev., “A”, 5.125%, 6/01/2034 (Prerefunded 6/01/2019) | 1,000,000 | 1,039,660 | ||||||
Montour County, PA, Geisinger Authority Health System Rev., “A-1”, 5%, 2/15/2045 | 1,000,000 | 1,121,550 | ||||||
New Hampshire Business Finance Authority Rev. (Huggins Hospital), 6.875%, 10/01/2039 (Prerefunded 10/01/2019) | 20,000 | 21,410 | ||||||
Northampton County, PA, General Purpose Authority Hospital Rev. (St. Luke’s Hospital), “A”, 5.5%, 8/15/2040 (Prerefunded 8/15/2018) | 500,000 | 507,105 | ||||||
Philadelphia, PA, Hospitals and Higher Education Facilities Authority Rev. (Temple University Health System Obligated Group), “A”, 5%, 7/01/2034 | 500,000 | 543,125 | ||||||
Philadelphia, PA, Hospitals and Higher Education Facilities Authority Rev. (The Children’s Hospital of Philadelphia), “C”, 5%, 7/01/2025 | 1,000,000 | 1,094,750 | ||||||
Royal Oak, MI, Hospital Finance Authority Rev. (William Beaumont Hospital), 5%, 9/01/2039 | 810,000 | 881,110 | ||||||
Southcentral, PA, General Authority Rev. (WellSpan Health Obligated Group), 6%, 6/01/2025 (Prerefunded 6/01/2018) | 430,000 | 432,967 | ||||||
Southcentral, PA, General Authority Rev. (WellSpan Health Obligated Group), 6%, 6/01/2025 | 320,000 | 322,262 | ||||||
Southcentral, PA, General Authority Rev. (WellSpan Health Obligated Group), “A”, 5%, 6/01/2044 | 1,000,000 | 1,088,220 | ||||||
St. Mary Hospital Authority, PA, Health System Rev. (Catholic Health East), “A”, ETM, 5%, 11/15/2033 (Prerefunded 11/15/2020) | 500,000 | 540,975 |
45
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Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
St. Petersburg, FL, Health Facilities Authority (All Children Hospital), “A”, 6.5%, 11/15/2039 (Prerefunded 11/15/2019) | $ | 155,000 | $ | 166,397 | ||||
West Shore, PA, Hospital Authority Rev. (Holy Spirit Hospital), “B”, 5.625%, 1/01/2032 | 500,000 | 564,095 | ||||||
Westmoreland County, PA, Industrial Development Authority Rev. (Excela Health Project), 5.125%, 7/01/2030 | 1,000,000 | 1,046,860 | ||||||
$ | 22,703,668 | |||||||
Healthcare Revenue - Long Term Care - 5.3% | ||||||||
Chester County, PA, Health & Education Facilities Authority Rev. (Simpson Senior Services Project), “A”, 5.25%, 12/01/2045 | $ | 500,000 | $ | 518,465 | ||||
Cumberland County, PA, Municipal Authority Rev. (Asbury Atlantic, Inc.), 6%, 1/01/2040 | 500,000 | 521,200 | ||||||
Cumberland County, PA, Municipal Authority Rev. (Asbury Atlantic, Inc.), 5.25%, 1/01/2041 | 500,000 | 515,010 | ||||||
Cumberland County, PA, Municipal Authority Rev. (Diakon Lutheran Social Ministries Project), 6.375%, 1/01/2039 (Prerefunded 1/01/2019) | 450,000 | 465,651 | ||||||
Cumberland County, PA, Municipal Authority Rev. (Diakon Lutheran Social Ministries Project), 6.375%, 1/01/2039 | 50,000 | 51,317 | ||||||
East Hempfield Township, PA, Industrial Development Authority Rev. (Willow Valley Communities Project), 5%, 12/01/2039 | 750,000 | 826,582 | ||||||
Lancaster County, PA, Hospital Authority Health Center Rev. (Masonic Villages Project), 5%, 11/01/2036 | 260,000 | 294,666 | ||||||
Lancaster County, PA, Hospital Authority Health Center Rev. (Masonic Villages Project), 5%, 11/01/2037 | 250,000 | 282,677 | ||||||
Lancaster County, PA, Hospital Authority Health System Rev. (Brethren Village Project), 5.125%, 7/01/2037 | 500,000 | 546,315 | ||||||
Lancaster County, PA, Hospital Authority Health System Rev. (Landis Homes Retirement Community Project), “A”, 5%, 7/01/2045 | 500,000 | 530,500 | ||||||
Lancaster County, PA, Hospital Authority Health System Rev. (Masonic Villages Project), 5%, 11/01/2035 | 500,000 | 551,920 | ||||||
Montgomery County, PA, Industrial Development Authority Retirement Community Rev. (Lanier Village Estates, Inc.), “A-1”, 6.25%, 11/15/2029 (Prerefunded 11/15/2019) | 250,000 | 267,808 | ||||||
Montgomery County, PA, Industrial Development Authority Rev. (Whitemarsh Continuing Care Retirement Community Project), 5.375%, 1/01/2050 | 400,000 | 405,720 | ||||||
Philadelphia, PA, Authority for Industrial Development, Senior Living Facilities Rev. (Wesley Enhanced Living Obligated Group), “A”, 5%, 7/01/2049 | 500,000 | 526,825 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Long Term Care - continued | ||||||||
Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7%, 11/01/2030 (Prerefunded 11/01/2020) | $ | 55,000 | $ | 61,904 | ||||
Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7.125%, 11/01/2040 (Prerefunded 11/01/2020) | 105,000 | 118,509 | ||||||
Travis County, TX, Health Facilities Development Corp. Rev., Unrefunded Balance, (Westminster Manor Health), 7%, 11/01/2030 | 10,000 | 10,789 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), “A”, 7.25%, 9/15/2029 (Prerefunded 9/15/2019) | 10,000 | 10,778 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), “A”, 7.625%, 9/15/2039 (Prerefunded 9/15/2019) | 70,000 | 75,820 | ||||||
$ | 6,582,456 | |||||||
Industrial Revenue - Environmental Services - 0.7% | ||||||||
Blythe Township, PA, Solid Waste Authority Rev. , 7.75%, 12/01/2037 | $ | 250,000 | $ | 263,150 | ||||
Delaware County, PA, Industrial Development Authority Rev. (Covanta Project), “A”, 5%, 7/01/2043 | 500,000 | 505,780 | ||||||
Delaware County, PA, Industrial Development Authority, Resource Recovery Facilities Rev. (American Ref-Fuel Co.), “A”, 6.2%, 7/01/2019 | 65,000 | 65,158 | ||||||
$ | 834,088 | |||||||
Industrial Revenue - Other - 1.0% | ||||||||
Pennsylvania Economic Development Financing Authority, Solid Waste Disposal Rev. (Procter & Gamble), 5.375%, 3/01/2031 | $ | 1,000,000 | $ | 1,206,140 | ||||
Miscellaneous Revenue - Other - 1.2% | ||||||||
Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/2040 | $ | 145,000 | $ | 155,546 | ||||
Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/2044 | 225,000 | 240,808 | ||||||
Pennsylvania Economic Development Financing Authority Rev. (The Pennsylvania Rapid Bridge Replacement Project), 5%, 12/31/2034 | 750,000 | 817,560 | ||||||
Texas Private Activity Surface Transportation Corp. Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 7%, 12/31/2038 | 140,000 | 164,637 |
46
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Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Miscellaneous Revenue - Other - continued | ||||||||
Texas Private Activity Surface Transportation Corp. Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 6.75%, 6/30/2043 | $ | 110,000 | $ | 127,598 | ||||
$ | 1,506,149 | |||||||
Multi-Family Housing Revenue - 1.1% | ||||||||
Philadelphia, PA, Authority for Industrial Development, Multifamily Housing Rev. (University Square Apartment Project- Section 8), “I”, 5%, 12/01/2058 | $ | 1,250,000 | $ | 1,327,513 | ||||
Sales & Excise Tax Revenue - 1.0% | ||||||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6.5%, 1/15/2030 | $ | 580,000 | $ | 637,675 | ||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “A”, AGM, 5%, 8/01/2040 | 65,000 | 65,837 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, AMBAC, 0%, 8/01/2054 | 400,000 | 51,512 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2040 | 195,000 | 50,757 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2041 | 155,000 | 38,156 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2042 | 405,000 | 94,114 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2043 | 150,000 | 32,944 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2044 | 95,000 | 19,780 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2045 | 70,000 | 13,820 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2046 | 1,395,000 | 261,228 | ||||||
$ | 1,265,823 | |||||||
Secondary Schools - 3.7% | ||||||||
Bucks County, PA, Industrial Development Authority Rev.(School Lane Charter School Project), “A”, 5.125%, 3/15/2046 | $ | 500,000 | $ | 532,275 | ||||
Chester County, PA, Industrial Development Authority Educational Facilities Rev. (Avon Grove Charter School), “A”, 5%, 12/15/2047 | 500,000 | 520,640 | ||||||
La Vernia, TX, Higher Education Finance Corp. Rev. (Lifeschool of Dallas), ’’A”, 7.5%, 8/15/2041 (Prerefunded 8/15/2019) | 345,000 | 371,027 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (Discovery Charter School Project), 6.25%, 4/01/2037 | 500,000 | 518,605 |
Issuer | Shares/Par | Value ($) | ||||||
Secondary Schools - continued | ||||||||
Philadelphia, PA, Authority for Industrial Development Rev. (Global Leadership Academy Charter School), 6.375%, 11/15/2040 | $ | 500,000 | $ | 516,385 | ||||
Philadelphia, PA, Authority for Industrial Development Rev. (MaST Charter School Project), 6%, 8/01/2035 (Prerefunded 8/01/2020) | 665,000 | 728,215 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (MaST Charter School Project), “B”, 6%, 8/01/2051 | 500,000 | 516,480 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (Philadelphia Performing Arts Charter School Project), 6.75%, 6/15/2043 | 400,000 | 421,532 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (Tacony Academy Charter School Project), “A-1”, 7%, 6/15/2043 | 400,000 | 439,648 | ||||||
$ | 4,564,807 | |||||||
Solid Waste Revenue - 0.4% | ||||||||
Pennsylvania Economic Development Financing Authority, Sewer Sludge Disposal Rev. (Philadelphia Biosolids Facility), 6.25%, 1/01/2032 | $ | 500,000 | $ | 528,090 | ||||
State & Local Agencies - 7.6% | ||||||||
Colorado State University Board of Governors, System Enterprise Refunding Rev., “E”, 4%, 3/01/2043 | $ | 655,000 | $ | 681,652 | ||||
Commonwealth Financing Authority Rev., “A-2”, 5%, 6/01/2036 | 1,500,000 | 1,614,045 | ||||||
Commonwealth Financing Authority, PA, Tobacco Master Settlement Payment Rev., 5%, 6/01/2034 | 1,000,000 | 1,111,910 | ||||||
Delaware Valley, PA, Regional Finance Authority, AMBAC, 5.5%, 8/01/2018 | 815,000 | 825,244 | ||||||
Delaware Valley, PA, Regional Finance Authority, “C”, FLR, 2.094% (LIBOR-3mo. + 0.75%), 6/01/2037 | 745,000 | 660,450 | ||||||
Pennsylvania Industrial Development Authority, Economic Development Authority Rev., 5.5%, 7/01/2023 (Prerefunded 7/01/2018) | 60,000 | 60,562 | ||||||
Pennsylvania Industrial Development Authority, Economic Development Authority Rev., 5.5%, 7/01/2023 (Prerefunded 7/01/2018) | 440,000 | 444,286 | ||||||
Philadelphia, PA, Municipal Authority Rev., 6.5%, 4/01/2034 | 500,000 | 523,670 | ||||||
Philadelphia, PA, Redevelopment Authority City Agreement Rev., “A”, 5%, 4/15/2028 | 1,000,000 | 1,107,900 | ||||||
Philadelphia, PA, Redevelopment Authority Refunding Rev. (Neighborhood Transformation Initiative), BAM, 5%, 4/15/2024 | 1,000,000 | 1,092,530 |
47
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Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
State & Local Agencies - continued | ||||||||
State Public School Building Authority, PA, School Lease Rev. (The School District of Philadelphia Project), “A”, AGM, 5%, 6/01/2033 | $ | 1,255,000 | $ | 1,402,500 | ||||
$ | 9,524,749 | |||||||
Tax - Other - 3.2% | ||||||||
Allentown, PA, Neighborhood Improvement Zone Development Authority Tax Rev. (City Center Refunding Project), 5%, 5/01/2042 | $ | 500,000 | $ | 530,305 | ||||
Allentown, PA, Neighborhood Improvement Zone Development Authority Tax Rev., “A”, 5%, 5/01/2035 | 750,000 | 784,838 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/2024 (Prerefunded 12/01/2019) | 140,000 | 148,530 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/2029 (Prerefunded 12/01/2019) | 45,000 | 47,925 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2033 | 185,000 | 195,016 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2034 | 115,000 | 120,885 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2035 | 115,000 | 120,544 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2036 | 60,000 | 62,759 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2046 | 185,000 | 191,747 | ||||||
Puerto Rico Convention Center District Authority, Hotel Occupancy Tax Rev., “A”, AMBAC, 5%, 7/01/2031 | 155,000 | 150,032 | ||||||
Puerto Rico Infrastructure Financing Authority Rev., Capital Appreciation, “A”, AMBAC, 0%, 7/01/2036 | 1,640,000 | 572,754 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2026 | 655,000 | 675,967 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2027 | 430,000 | 442,848 | ||||||
$ | 4,044,150 | |||||||
Tax Assessment - 0.4% | ||||||||
Washington County, PA, Redevelopment Authority Refunding Rev. (Victory Centre Tax Increment Financing Project), 5%, 7/01/2035 | $ | 500,000 | $ | 513,160 | ||||
Tobacco - 0.9% | ||||||||
Illinois Railsplitter Tobacco Settlement Authority Rev., 6%, 6/01/2028 (Prerefunded 6/01/2021) | $ | 755,000 | $ | 849,269 | ||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.5%, 6/01/2023 | 275,000 | 276,051 | ||||||
$ | 1,125,320 |
Issuer | Shares/Par | Value ($) | ||||||
Toll Roads - 2.0% | ||||||||
Delaware River Port Authority Rev., 5%, 1/01/2029 | $ | 1,145,000 | $ | 1,281,633 | ||||
Pennsylvania Turnpike Commission Rev., “A-1”, 5%, 12/01/2037 | 500,000 | 566,710 | ||||||
Pennsylvania Turnpike Commission Rev., “B”, 5%, 12/01/2030 | 525,000 | 597,140 | ||||||
$ | 2,445,483 | |||||||
Transportation - Special Tax - 2.9% | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “AA-1”, AGM, 4.95%, 7/01/2026 | $ | 145,000 | $ | 148,358 | ||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “D”, AGM, 5%, 7/01/2032 | 270,000 | 270,227 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “L”, AMBAC, 5.25%, 7/01/2038 | 765,000 | 741,759 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “L”, NATL, 5.25%, 7/01/2035 | 240,000 | 228,221 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, AMBAC, 5.5%, 7/01/2029 | 745,000 | 762,567 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, NATL, 5.25%, 7/01/2032 | 70,000 | 67,698 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, NATL, 5.25%, 7/01/2033 | 55,000 | 52,940 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Unrefunded Rev., “A”, NATL, 5%, 7/01/2038 | 20,000 | 18,219 | ||||||
New Jersey Transportation Trust Fund Authority, Federal Highway Reimbursement Rev., “A-1”, 5%, 6/15/2027 | 215,000 | 238,777 | ||||||
Pennsylvania Turnpike Commission (Motor License Fund), “B”, 5%, 12/01/2030 (Prerefunded 12/01/2021) | 1,000,000 | 1,108,360 | ||||||
$ | 3,637,126 | |||||||
Universities - Colleges - 14.5% | ||||||||
Allegheny County, PA, Higher Education Building Authority Rev. (Duquesne University), “A”, 5%, 3/01/2032 | $ | 500,000 | $ | 557,690 | ||||
Allegheny County, PA, Higher Education Building Authority Rev. (Robert Morris University), 5%, 10/15/2037 | 500,000 | 544,675 | ||||||
Allegheny County, PA, Higher Education Building Authority Rev. (Robert Morris University), “A”, 6%, 10/15/2038 (Prerefunded 10/15/2018) | 250,000 | 255,803 | ||||||
Allegheny County, PA, Higher Education Building Authority Rev. (Robert Morris University), “A”, 5.75%, 10/15/2040 | 500,000 | 531,285 |
48
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Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
Commonwealth of Pennsylvania, State Public School Building Authority Rev. (Montgomery County Community College), 5%, 5/01/2033 | $ | 1,000,000 | $ | 1,134,160 | ||||
Crawford County, PA, Industrial Development Authority, College Rev., “A”, 6%, 11/01/2031 | 250,000 | 258,808 | ||||||
Cumberland County, PA, Municipal Authority College Rev. (Dickinson College), “HH1”, 5%, 11/01/2039 | 300,000 | 315,537 | ||||||
Delaware County, PA, Authority University Rev. (Neumann University), 5.25%, 10/01/2031 | 565,000 | 591,724 | ||||||
Delaware County, PA, Authority University Rev. (Neumann University), 6.125%, 10/01/2034 (Prerefunded 10/01/2018) | 750,000 | 766,417 | ||||||
Delaware County, PA, Authority University Rev. (Villanova University), 5.25%, 12/01/2031 (Prerefunded 12/01/2019) | 350,000 | 370,139 | ||||||
Erie, PA, Higher Education Building Authority Rev. (Gannon University), “A”, 5.5%, 5/01/2040 | 1,000,000 | 1,043,600 | ||||||
Illinois Finance Authority Rev. (Roosevelt University Project), 6.25%, 4/01/2029 | 1,050,000 | 1,099,035 | ||||||
Northampton County, PA, General Purpose Authority Rev. (Lafayette College), 5%, 11/01/2034 (Prerefunded 11/01/2018) | 250,000 | 254,983 | ||||||
Northampton County, PA, General Purpose Authority Rev. (Lehigh University), 5.5%, 11/15/2033 (Prerefunded 5/15/2019) | 500,000 | 521,485 | ||||||
Northeastern, PA, Hospital & Education Authority Rev. (Wilkes University), “B”, 5.25%, 3/01/2037 | 750,000 | 826,507 | ||||||
Pennsylvania Higher Educational Facilities Authority Rev., AGM, 3%, 6/15/2045 | 575,000 | 505,201 | ||||||
Pennsylvania Higher Educational Facilities Authority Rev. (Saint Francis University Project), “JJ2”, 6.25%, 11/01/2041 | 500,000 | 573,945 | ||||||
Pennsylvania Higher Educational Facilities Authority Rev. (Trustees of the University of Pennsylvania), “A”, 5%, 8/15/2036 | 500,000 | 578,595 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (Temple University), 5%, 4/01/2027 | 805,000 | 925,605 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (Thomas Jefferson University), “A”, 5%, 9/01/2036 | 1,000,000 | 1,122,090 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (Thomas Jefferson University), “A”, 5%, 9/01/2042 | 1,000,000 | 1,113,140 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (University of the Sciences), “A”, 5%, 11/01/2042 | 750,000 | 834,360 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.375%, 4/01/2042 | 95,000 | 81,700 |
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
University of Puerto Rico Rev., “P”, NATL, 5%, 6/01/2025 | $ | 25,000 | $ | 24,718 | ||||
Washington County, PA, Industrial Development Authority College Rev. (Washington Jefferson College), 5.25%, 11/01/2030 (Prerefunded 5/01/2020) | 1,000,000 | 1,071,310 | ||||||
Wilkes-Barre, PA, Finance Authority Rev. (The University of Scranton), 5%, 11/01/2035 | 1,000,000 | 1,082,080 | ||||||
Wilkes-Barre, PA, Finance Authority Rev. (The University of Scranton), “A”, 5%, 11/01/2026 | 1,000,000 | 1,132,470 | ||||||
$ | 18,117,062 | |||||||
Universities - Dormitories - 3.0% | ||||||||
Clarion County, PA, Industrial Development Authority Student Housing Rev. (Clarion University Foundation, Inc.), “A”, 5%, 7/01/2045 | $ | 1,000,000 | $ | 1,020,880 | ||||
East Hempfield Township, PA, Industrial Development Authority Rev. (Student Services, Inc., Student Housing Project at Millersville University of Pennsylvania), 5%, 7/01/2046 | 1,000,000 | 1,054,150 | ||||||
Pennsylvania Higher Educational Facilities Authority Rev. (Edinboro University Foundation), 6%, 7/01/2043 (Prerefunded 7/01/2020) | 1,000,000 | 1,090,790 | ||||||
Pennsylvania Higher Educational Facilities Authority Rev. (Shippensburg University Student Services), 6.25%, 10/01/2043 | 500,000 | 549,240 | ||||||
$ | 3,715,060 | |||||||
Utilities - Investor Owned - 2.0% | ||||||||
Clarion County, PA, Industrial Development Authority, Water Facility Rev. (Pennsylvania American Water Co.), 5.5%, 12/01/2039 | $ | 1,000,000 | $ | 1,055,530 | ||||
Michigan Strategic Fund Ltd. Obligation Rev. (Detroit Edison Co.), 5.625%, 7/01/2020 | 415,000 | 446,420 | ||||||
Pennsylvania Economic Development Financing Authority, Water Facilities Rev. (Aqua Pennsylvania, Inc.), “A”, 5%, 10/01/2039 | 1,000,000 | 1,040,190 | ||||||
$ | 2,542,140 | |||||||
Utilities - Municipal Owned - 1.8% | ||||||||
Guam Power Authority Rev., “A”, 5.5%, 10/01/2030 (Prerefunded 10/01/2020) | $ | 315,000 | $ | 342,981 | ||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/2039 | 95,000 | 102,976 | ||||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/2044 | 105,000 | 113,436 | ||||||
Philadelphia, PA, Gas Works Rev., 5%, 8/01/2031 | 500,000 | 567,435 | ||||||
Philadelphia, PA, Gas Works Rev. (1998 General Ordinance), “9”, 5.25%, 8/01/2040 (Prerefunded 8/01/2020) | 390,000 | 420,436 |
49
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Utilities - Municipal Owned - continued | ||||||||
Philadelphia, PA, Gas Works Rev., Unrefunded Balance, (1998 General Ordinance), “9”, 5.25%, 8/01/2040 | $ | 610,000 | $ | 648,826 | ||||
$ | 2,196,090 | |||||||
Utilities - Other - 2.0% | ||||||||
California M-S-R Energy Authority Gas Rev., “A”, 6.5%, 11/01/2039 | $ | 545,000 | $ | 765,365 | ||||
Central Plains Energy Project, NE, Gas Project Rev. (Project No.3), “A”, 5%, 9/01/2036 | 75,000 | 88,708 | ||||||
Central Plains Energy Project, NE, Gas Project Rev. (Project No.3), “A”, 5%, 9/01/2042 | 155,000 | 186,360 | ||||||
Public Authority for Colorado Energy Natural Gas Purchase Rev., 6.5%, 11/15/2038 | 280,000 | 388,864 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2019 | 420,000 | 439,013 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2022 | 235,000 | 261,724 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “C”, 5%, 2/01/2021 | 255,000 | 274,610 | ||||||
Texas Gas Acquisition & Supply Corp III., Gas Supply Rev., 5%, 12/15/2031 | 75,000 | 81,940 | ||||||
$ | 2,486,584 | |||||||
Water & Sewer Utility Revenue - 9.0% | ||||||||
Allegheny County, PA, Sanitation Authority Sewer Rev., AGM, 5%, 6/01/2040 | $ | 1,000,000 | $ | 1,070,620 | ||||
Allegheny County, PA, Sanitation Authority Sewer Rev., BAM, 5%, 12/01/2030 | 500,000 | 575,730 | ||||||
Bucks County, PA, Water & Sewer Authority, Water System Rev., 5%, 12/01/2033 (Prerefunded 12/01/2021) | 1,000,000 | 1,108,360 | ||||||
Canonsburg-Houston, PA, Joint Authority Sewer Rev., “A”, 5%, 12/01/2040 | 1,000,000 | 1,104,230 | ||||||
Capital Region Water Sewer System Rev., 5%, 7/15/2042 | 1,000,000 | 1,125,560 | ||||||
Clairton, PA, Municipal Authority Sewer Rev., “B”, 5%, 12/01/2042 | 500,000 | 533,750 |
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - continued | ||||||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, ASSD GTY, 5%, 7/01/2028 | $ | 45,000 | $ | 45,069 | ||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, ASSD GTY, 5.125%, 7/01/2047 | 110,000 | 110,245 | ||||||
Erie, PA, Water Authority Rev., “A”, AGM, 5%, 12/01/2043 | 1,000,000 | 1,140,810 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5.25%, 7/01/2020 | 45,000 | 47,602 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5.25%, 7/01/2021 | 120,000 | 129,362 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5.625%, 7/01/2040 (Prerefunded 7/01/2020) | 260,000 | 281,952 | ||||||
Harrisburg, PA, Water Authority Rev., 5.25%, 7/15/2031 | 1,000,000 | 1,009,350 | ||||||
Philadelphia, PA, Water & Wastewater Rev., “A”, 5.25%, 1/01/2032 (Prerefunded 1/01/2019) | 1,000,000 | 1,026,880 | ||||||
Philadelphia, PA, Water & Wastewater Rev., “A”, 5%, 10/01/2037 | 1,000,000 | 1,140,220 | ||||||
St. Mary’s, PA, Water Authority Rev., 5.15%, 2/01/2030 | 750,000 | 795,938 | ||||||
$ | 11,245,678 | |||||||
Total Municipal Bonds (Identified Cost, $120,527,287) | $ | 124,961,783 | ||||||
Investment Companies (h) - 0.1% | ||||||||
Money Market Funds - 0.1% | ||||||||
MFS Institutional Money Market Portfolio, 1.71% (v) (Identified Cost, $148,966) | 148,995 | $ | 148,980 | |||||
Other Assets, Less Liabilities - (0.4)% | (546,993) | |||||||
Net Assets - 100.0% | $ | 124,563,770 |
See Portfolio Footnotes and Notes to Financial Statements
50
Table of Contents
PORTFOLIO OF INVESTMENTS
3/31/18
MFS SOUTH CAROLINA MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
Municipal Bonds - 96.8% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 3.5% | ||||||||
Charleston County, SC, Airport District Rev., “A”, 5.25%, 7/01/2021 | $ | 2,000,000 | $ | 2,196,520 | ||||
Dallas and Fort Worth, TX, International Airport Rev., “B”, 5%, 11/01/2044 | 220,000 | 240,656 | ||||||
Dallas and Fort Worth, TX, International Airport Rev., “C”, 5%, 11/01/2045 | 155,000 | 167,904 | ||||||
Horry County, SC, Airport Rev. (Myrtle Beach International Airport), “A”, 5%, 7/01/2040 | 2,250,000 | 2,385,113 | ||||||
New York, NY, Transportation Development Corp. Special Facilities Rev. (LaGuardia Airport Terminal B Redevelopment Project), “A”, AGM, 4%, 7/01/2037 | 1,120,000 | 1,154,294 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, 5%, 12/01/2044 | 90,000 | 99,078 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, BAM, 5%, 12/01/2039 | 10,000 | 11,040 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/2039 | 75,000 | 81,722 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/2044 | 120,000 | 130,384 | ||||||
$ | 6,466,711 | |||||||
General Obligations - General Purpose - 5.2% | ||||||||
Aiken County, SC, County Administration Building Project, 5%, 3/01/2025 | $ | 910,000 | $ | 1,008,216 | ||||
Berkeley County, SC, General Obligation, “A”, 5%, 3/01/2027 | 2,020,000 | 2,386,771 | ||||||
Charleston County, SC, General Obligation Transportation Sales Tax, “C”, 3%, 11/01/2029 | 2,000,000 | 2,013,260 | ||||||
Commonwealth of Massachusetts, General Obligation Consolidated Loan, “G”, 3%, 9/01/2046 | 1,460,000 | 1,281,676 | ||||||
Commonwealth of Puerto Rico, “A”, NATL, 5.5%, 7/01/2020 | 495,000 | 502,262 | ||||||
Commonwealth of Puerto Rico, Public Improvement Refunding, “A-4”, AGM, 5%, 7/01/2031 | 145,000 | 149,857 | ||||||
Commonwealth of Puerto Rico, Public Improvement, “A”, AGM, 5%, 7/01/2035 | 45,000 | 46,296 | ||||||
Commonwealth of Puerto Rico, Public Improvement, “A-4”, AGM, 5.25%, 7/01/2030 | 65,000 | 67,674 | ||||||
Guam Government, “A”, 7%, 11/15/2039 (Prerefunded 11/15/2019) | 50,000 | 54,098 | ||||||
Puerto Rico Public Buildings Authority Rev., “M-2”, AMBAC, 10%, 7/01/2035 | 105,000 | 109,881 | ||||||
Richland County, SC, General Obligation, “B”, 5%, 3/01/2023 | 1,000,000 | 1,136,640 |
Issuer | Shares/Par | Value ($) | ||||||
General Obligations - General Purpose - continued | ||||||||
State of Illinois, 5%, 11/01/2027 | $ | 410,000 | $ | 426,441 | ||||
State of Illinois, “D”, 5%, 11/01/2028 | 415,000 | 430,658 | ||||||
$ | 9,613,730 | |||||||
General Obligations - Schools - 6.1% | ||||||||
Anderson County, SC, School District, “A”, 5%, 3/01/2026 | $ | 1,240,000 | $ | 1,467,094 | ||||
Berkeley County, SC, General Obligation, “A”, 5%, 3/01/2024 | 1,000,000 | 1,155,590 | ||||||
Chesterfield County, SC, School District, 5%, 3/01/2025 | 1,000,000 | 1,106,740 | ||||||
Laurens County, SC, School District No. 56, ASSD GTY, 6.125%, 3/01/2033 (Prerefunded 3/01/2019) | 1,000,000 | 1,040,560 | ||||||
Lexington County, SC, School District No. 1, “A”, 5%, 3/01/2023 | 1,030,000 | 1,165,589 | ||||||
Richland County, SC, School District No. 1, “A”, 5%, 3/01/2025 | 2,000,000 | 2,197,540 | ||||||
Richland County, SC, School District No. 1, “A”, 5%, 3/01/2029 | 3,000,000 | 3,284,880 | ||||||
$ | 11,417,993 | |||||||
Healthcare Revenue - Hospitals - 20.2% | ||||||||
California Health Facilities Financing Authority Rev. (Providence St. Joseph Health System), “A”, 3%, 10/01/2041 | $ | 685,000 | $ | 618,178 | ||||
California Health Facilities Financing Authority Rev. (Stanford Health System), “A”, 4%, 11/15/2040 | 605,000 | 627,500 | ||||||
DeKalb County, GA, Hospital Authority Rev. (DeKalb Medical Center, Inc.), 6.125%, 9/01/2040 | 400,000 | 428,468 | ||||||
Escambia County, FL, Health Facilities Authority (Baptist Hospital, Inc.), “A”, 6%, 8/15/2036 | 925,000 | 997,585 | ||||||
Florence County, SC, Hospital Rev. (McLeod Regional Medical Center), “A”, 5%, 11/01/2037 | 3,000,000 | 3,177,570 | ||||||
Greenville, SC, Hospital Systems, Hospital Facilities Rev., 6%, 5/01/2020 | 3,400,000 | 3,527,058 | ||||||
Greenwood County, SC, Hospital Facilities Refunding Rev. (Self Regional Healthcare), “B”, 5%, 10/01/2031 | 1,950,000 | 2,114,892 | ||||||
Greenwood County, SC, Hospital Facilities Refunding Rev. (Self Regional Heathcare), 4%, 10/01/2036 | 1,500,000 | 1,530,930 | ||||||
Greenwood County, SC, Hospital Facilities Rev. (Self Regional Healthcare), 5.375%, 10/01/2039 | 1,000,000 | 1,053,240 | ||||||
Illinois Finance Authority Rev. (Provena Health), “A”, 6%, 5/01/2028 (Prerefunded 5/01/2020) | 550,000 | 597,014 |
51
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 7%, 8/15/2044 (Prerefunded 8/15/2019) | $ | 480,000 | $ | 513,667 | ||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.25%, 7/01/2031 | 155,000 | 159,554 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.375%, 7/01/2041 | 180,000 | 184,174 | ||||||
Kentucky Economic Development Finance Authority Hospital Rev. (Owensboro Medical Health System, Inc.), “A”, 6.375%, 6/01/2040 (Prerefunded 6/01/2020) | 605,000 | 662,173 | ||||||
Kentucky Economic Development Finance Authority Hospital Rev. (Owensboro Medical Health System, Inc.), “A”, 6.5%, 3/01/2045 (Prerefunded 6/01/2020) | 865,000 | 948,057 | ||||||
Lexington County, SC, Health Services District, Inc., Hospital Rev., 4%, 11/01/2031 | 1,000,000 | 1,059,590 | ||||||
Lexington County, SC, Health Services District, Inc., Hospital Rev., 4%, 11/01/2032 | 1,000,000 | 1,057,060 | ||||||
Lexington County, SC, Health Services District, Inc., Hospital Rev., 5%, 11/01/2035 | 1,000,000 | 1,120,410 | ||||||
Lexington County, SC, Health Services District, Inc., Hospital Rev., 5%, 11/01/2036 | 1,000,000 | 1,116,650 | ||||||
Lexington County, SC, Health Services District, Inc., Hospital Rev., Refunding & Improvement, 5%, 11/01/2026 | 500,000 | 541,270 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6%, 10/01/2027 (Prerefunded 10/01/2019) | 400,000 | 424,968 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6.125%, 10/01/2039 (Prerefunded 10/01/2019) | 445,000 | 473,596 | ||||||
Richmond, IN, Hospital Authority Rev. (Reid Hospital), “A”, 6.5%, 1/01/2029 (Prerefunded 1/01/2019) | 585,000 | 605,440 | ||||||
Royal Oak, MI, Hospital Finance Authority Rev. (William Beaumont Hospital), “V”, 8.25%, 9/01/2039 (Prerefunded 9/01/2018) | 915,000 | 939,888 | ||||||
South Carolina Economic Development Authority Hospital Rev. (Conway Hospital, Inc.), 5.25%, 7/01/2047 | 2,000,000 | 2,216,940 | ||||||
South Carolina Economic Development Authority Hospital Rev. (Hampton Regional Medical Center Project), 5%, 11/01/2037 | 500,000 | 518,475 | ||||||
South Carolina Jobs & Economic Development Authority Hospital Rev. (Conway Hospital, Inc.), 5%, 7/01/2037 | 1,250,000 | 1,317,237 | ||||||
South Carolina Jobs & Economic Development Authority Hospital Rev. (Palmetto Health), 5.75%, 8/01/2039 | 275,000 | 284,103 | ||||||
South Carolina Jobs & Economic Development Authority Hospital Rev. (Palmetto Health), “A”, 5.25%, 8/01/2030 | 1,000,000 | 1,075,780 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
South Carolina Jobs & Economic Development Authority, Hospital Rev. (Anmed Health), 5%, 2/01/2038 | $ | 1,500,000 | $ | 1,659,315 | ||||
South Carolina Jobs & Economic Development Authority, Hospital Rev. (Anmed Health), “B”, ASSD GTY, 5.5%, 2/01/2038 (Prerefunded 2/01/2019) | 1,500,000 | 1,547,115 | ||||||
Spartanburg County, SC, Regional Health Services District, “A”, 4%, 4/15/2043 | 2,000,000 | 1,999,940 | ||||||
Spartanburg, SC, Regional Health Services District, “A”, 5%, 4/15/2037 (Prerefunded 4/15/2022) | 30,000 | 33,286 | ||||||
Spartanburg, SC, Regional Health Services District, “A”, 5%, 4/15/2037 | 1,970,000 | 2,142,040 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 6.75%, 7/01/2029 (Prerefunded 7/01/2019) | 105,000 | 111,202 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 7%, 7/01/2039 (Prerefunded 7/01/2019) | 255,000 | 270,843 | ||||||
$ | 37,655,208 | |||||||
Healthcare Revenue - Long Term Care - 2.1% | ||||||||
South Carolina Economic Development Authority, Residential Care Facilities Rev. (South Carolina Episcopal Home at Still Hopes), 5%, 4/01/2047 | $ | 1,000,000 | $ | 1,037,400 | ||||
South Carolina Jobs & Economic Development Authority, Health Facilities Rev. (Lutheran Homes of South Carolina, Inc.), 5%, 5/01/2043 | 750,000 | 769,913 | ||||||
South Carolina Jobs & Economic Development Authority, Health Facilities Rev. (Lutheran Homes of South Carolina, Inc.), 5.125%, 5/01/2048 | 250,000 | 257,470 | ||||||
South Carolina Jobs & Economic Development Authority, Health Facilities Rev. (Lutheran Homes of South Carolina, Inc.), “B”, 5%, 5/01/2042 | 750,000 | 783,352 | ||||||
South Carolina Jobs & Economic Development Authority, Health Facilities Rev. (Wesley Commons), 5%, 10/01/2036 | 1,000,000 | 1,008,260 | ||||||
$ | 3,856,395 | |||||||
Industrial Revenue - Paper - 0.6% | ||||||||
Richland County, SC, Environmental Improvement Rev. (International Paper), “A”, 3.875%, 4/01/2023 | $ | 1,000,000 | $ | 1,063,210 | ||||
Valparaiso, IN, Exempt Facilities Rev. (Pratt Paper LLC Project), 7%, 1/01/2044 | 100,000 | 118,063 | ||||||
$ | 1,181,273 | |||||||
Miscellaneous Revenue - Other - 0.0% | ||||||||
Summit County, OH, Port Authority Building Rev. (Flats East Development Recovery Zone Facility Bonds), 6.875%, 5/15/2040 | $ | 45,000 | $ | 49,558 |
52
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Port Revenue - 0.9% | ||||||||
South Carolina Port Authority Rev., 5%, 7/01/2028 | $ | 300,000 | $ | 340,257 | ||||
South Carolina Port Authority Rev., 5%, 7/01/2029 | 450,000 | 508,815 | ||||||
South Carolina Port Authority Rev., 5%, 7/01/2033 | 500,000 | 558,790 | ||||||
South Carolina Port Authority Rev., 5.25%, 7/01/2040 | 250,000 | 266,543 | ||||||
$ | 1,674,405 | |||||||
Sales & Excise Tax Revenue - 1.5% | ||||||||
Chicago, IL, Transit Authority Sales Tax Receipts Rev., AGM, 5%, 12/01/2046 | $ | 1,315,000 | $ | 1,434,520 | ||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6%, 1/15/2041 | 725,000 | 779,266 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “A”, AGM, 5%, 8/01/2040 | 95,000 | 96,223 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, AMBAC, 0%, 8/01/2054 | 595,000 | 76,624 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2042 | 375,000 | 87,143 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2045 | 100,000 | 19,743 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2046 | 2,080,000 | 389,501 | ||||||
$ | 2,883,020 | |||||||
Secondary Schools - 0.1% | ||||||||
North Texas Education Finance Corp., Education Rev. (Uplift Education), “A”, 5.125%, 12/01/2042 | $ | 220,000 | $ | 230,765 | ||||
State & Local Agencies - 12.0% | ||||||||
Berkeley County, SC, School District Special Obligation, 5%, 12/01/2021 | $ | 1,000,000 | $ | 1,103,510 | ||||
Charleston County, SC, Special Source Rev., “C”, 5%, 12/01/2021 | 1,000,000 | 1,106,870 | ||||||
Charleston, SC, Educational Excellence Finance Corp. Rev. (Charleston County School District Project), “B”, 5%, 12/01/2030 | 3,595,000 | 4,026,256 | ||||||
Colorado State University Board of Governors, System Enterprise Refunding Rev., “E”, 4%, 3/01/2043 | 960,000 | 999,062 | ||||||
Commonwealth Financing Authority, PA, Tobacco Master Settlement Payment Rev., 5%, 6/01/2032 | 55,000 | 61,751 | ||||||
Commonwealth Financing Authority, PA, Tobacco Master Settlement Payment Rev., 5%, 6/01/2033 | 45,000 | 50,279 | ||||||
Commonwealth Financing Authority, PA, Tobacco Master Settlement Payment Rev., 5%, 6/01/2034 | 25,000 | 27,798 |
Issuer | Shares/Par | Value ($) | ||||||
State & Local Agencies - continued | ||||||||
Delaware Valley, PA, Regional Finance Authority, “C”, FLR, 2.094% (LIBOR-3mo. + 0.75%), 6/01/2037 | $ | 1,330,000 | $ | 1,179,058 | ||||
Greenwood, SC, Fifty School Facilities, Inc., Installment Purchase Rev. (Greenwood School District No. 50), BAM, 5%, 12/01/2028 | 3,000,000 | 3,450,090 | ||||||
Los Angeles County, CA, Public Works Financing Authority Lease Rev., “D”, 5%, 12/01/2032 | 1,140,000 | 1,316,061 | ||||||
New Jersey Building Authority Rev., Unrefunded Balance, “A”, BAM, 5%, 6/15/2029 | 35,000 | 39,619 | ||||||
New York Dormitory Authority Rev., State Personal Income Tax, “A”, (Group C), 5%, 2/15/2041 | 795,000 | 905,537 | ||||||
Orangeburg County, SC, Facilities Corp. Installment Purchase Rev. (Detention Center Project), 4%, 12/01/2042 | 2,000,000 | 2,033,640 | ||||||
Scago, SC, Educational Facilities Installment Purchase Rev. (School District of Pickens County Project), 5%, 12/01/2028 | 2,000,000 | 2,275,300 | ||||||
State Public School Building Authority, PA, School Lease Rev. (The School District of Philadelphia Project), “A”, AGM, 5%, 6/01/2033 | 1,115,000 | 1,246,046 | ||||||
Sumter, SC, School Facilities, Inc., Installment Purchase Rev. (Sumter Two School Facilities, Inc.), BAM, 5%, 12/01/2026 | 1,000,000 | 1,133,020 | ||||||
Sumter, SC, School Facilities, Inc., Installment Purchase Rev. (Sumter Two School Facilities, Inc.), BAM, 5%, 12/01/2027 | 1,195,000 | 1,348,725 | ||||||
$ | 22,302,622 | |||||||
Tax - Other - 5.3% | ||||||||
Commonwealth of Puerto, Rico Infrastructure Financing Authority Rev., “C”, AMBAC, 5.5%, 7/01/2025 | $ | 50,000 | $ | 51,654 | ||||
Greenville County, SC, Hospitality Tax Rev., AGM, 5%, 4/01/2022 | 1,025,000 | 1,107,420 | ||||||
Greenville County, SC, Tourism Public Facilities Corp., Hospitality Tax, 4.75%, 4/01/2029 (Prerefunded 4/01/2020) | 750,000 | 794,062 | ||||||
Greenville County, SC, Tourism Public Facilities Corp., Hospitality Tax, 4.75%, 4/01/2030 (Prerefunded 4/01/2020) | 500,000 | 529,375 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/2024 (Prerefunded 12/01/2019) | 180,000 | 190,967 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/2029 (Prerefunded 12/01/2019) | 60,000 | 63,901 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2033 | 285,000 | 300,430 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2034 | 180,000 | 189,211 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2035 | 180,000 | 188,678 |
53
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Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Tax - Other - continued | ||||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2036 | $ | 95,000 | $ | 99,369 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2046 | 285,000 | 295,394 | ||||||
Myrtle Beach, SC, Tax Increment Refunding Bonds Rev. (Myrtle Beach Air Force Vase Redevelopment Project Area), 5%, 10/01/2030 | 1,000,000 | 1,130,570 | ||||||
North Charleston, SC, Limited Obligation Bond (Hospitality Fee Pledge), “A”, 5%, 10/01/2040 | 2,000,000 | 2,206,440 | ||||||
Puerto Rico Convention Center District Authority, Hotel Occupancy Tax Rev., “A”, AMBAC, 5%, 7/01/2031 | 400,000 | 387,180 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2024 | 440,000 | 454,498 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2026 | 1,245,000 | 1,284,852 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2027 | 635,000 | 653,974 | ||||||
$ | 9,927,975 | |||||||
Tobacco - 0.5% | ||||||||
Illinois Railsplitter Tobacco Settlement Authority Rev., 6%, 6/01/2028 (Prerefunded 6/01/2021) | $ | 850,000 | $ | 956,131 | ||||
Toll Roads - 0.5% | ||||||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 6%, 1/01/2037 | $ | 275,000 | $ | 307,634 | ||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 5.5%, 1/01/2042 | 535,000 | 584,557 | ||||||
$ | 892,191 | |||||||
Transportation - Special Tax - 6.0% | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “AA-1”, AGM, 4.95%, 7/01/2026 | $ | 755,000 | $ | 772,486 | ||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “CC”, AGM, 5.25%, 7/01/2036 | 435,000 | 463,536 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “J”, NATL, 5%, 7/01/2029 | 20,000 | 19,314 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “L”, AMBAC, 5.25%, 7/01/2038 | 1,340,000 | 1,299,291 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “L”, NATL, 5.25%, 7/01/2035 | 480,000 | 456,442 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, AGM, 5.5%, 7/01/2029 | 320,000 | 348,560 |
Issuer | Shares/Par | Value ($) | ||||||
Transportation - Special Tax - continued | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, AMBAC, 5.5%, 7/01/2029 | $ | 1,110,000 | $ | 1,136,174 | ||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, AMBAC, 5.25%, 7/01/2031 | 80,000 | 79,317 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, ASSD GTY, 5.25%, 7/01/2034 | 175,000 | 186,233 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, ASSD GTY, 5.25%, 7/01/2036 | 20,000 | 21,311 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, NATL, 5.25%, 7/01/2032 | 405,000 | 391,680 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, NATL, 5.25%, 7/01/2033 | 350,000 | 336,892 | ||||||
New Jersey Transportation Trust Fund Authority, Federal Highway Reimbursement Rev., “A-1”, 5%, 6/15/2027 | 350,000 | 388,706 | ||||||
South Carolina Transportation Infrastructure Bank Rev., “A”, 5%, 10/01/2040 | 2,000,000 | 2,266,480 | ||||||
South Carolina Transportation Infrastructure Rev., “A”, 5%, 10/01/2023 | 2,825,000 | 3,099,646 | ||||||
$ | 11,266,068 | |||||||
Universities - Colleges - 6.4% | ||||||||
College of Charleston, SC, Academic & Administrative Facilities Rev., “B”, 5%, 4/01/2022 | $ | 1,205,000 | $ | 1,328,970 | ||||
Pennsylvania Higher Educational Facilities Authority Rev., AGM, 3%, 6/15/2045 | 865,000 | 759,998 | ||||||
Pinellas County, FL, Educational Facilities Authority Rev. (Barry University), 6%, 10/01/2041 | 200,000 | 216,448 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.125%, 4/01/2032 | 75,000 | 66,562 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.375%, 4/01/2042 | 125,000 | 107,500 | ||||||
Puerto Rico Industrial, Tourist, Medical, & Environmental Central Facilities (University of Sacred Heart), 4.375%, 10/01/2031 | 55,000 | 38,913 | ||||||
Puerto Rico Industrial, Tourist, Medical, & Environmental Central Facilities (University of Sacred Heart), 5%, 10/01/2042 | 30,000 | 20,663 | ||||||
Red River, TX, Education Finance Corp., Higher Education Rev. (Houston Baptist University Project), 5.5%, 10/01/2046 | 390,000 | 428,540 |
54
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
South Carolina Educational Facilities Authority (Wofford College), 5%, 4/01/2035 | $ | 1,565,000 | $ | 1,751,783 | ||||
South Carolina Jobs & Economic Development Authority (Furman University), 5%, 10/01/2028 | 700,000 | 808,059 | ||||||
University of Puerto Rico Rev., “P”, NATL, 5%, 6/01/2025 | 30,000 | 29,662 | ||||||
University of South Carolina, Athletic Facilities Rev., “A”, 4%, 5/01/2035 | 365,000 | 381,925 | ||||||
University of South Carolina, Athletic Facilities Rev., “A”, 5%, 5/01/2035 (Prerefunded 5/01/2020) | 830,000 | 884,091 | ||||||
University of South Carolina, Athletic Facilities Rev., “A”, 5%, 5/01/2035 | 170,000 | 180,290 | ||||||
University of South Carolina, Athletic Facilities Rev., “A”, 4%, 5/01/2036 | 400,000 | 417,972 | ||||||
University of South Carolina, Athletic Facilities Rev., “A”, 5%, 5/01/2036 | 440,000 | 505,696 | ||||||
University of South Carolina, Athletic Facilities Rev., “A”, 5%, 5/01/2037 | 1,560,000 | 1,788,930 | ||||||
University of South Carolina, Athletic Facilities Rev., “A”, 5%, 5/01/2040 (Prerefunded 5/01/2020) | 1,665,000 | 1,773,508 | ||||||
University of South Carolina, Athletic Facilities Rev., “A”, 5%, 5/01/2040 | 335,000 | 354,855 | ||||||
$ | 11,844,365 | |||||||
Universities - Dormitories - 1.5% | ||||||||
University of South Carolina, Higher Education Rev., “A”, 5%, 6/01/2035 | $ | 2,555,000 | $ | 2,733,671 | ||||
Utilities - Investor Owned - 0.5% | ||||||||
Michigan Strategic Fund Ltd. Obligation Rev. (Detroit Edison Co.), 5.625%, 7/01/2020 | $ | 800,000 | $ | 860,568 | ||||
Utilities - Municipal Owned - 6.9% | ||||||||
Easley, SC, Utility Rev., AGM, 5.25%, 12/01/2031 | $ | 2,500,000 | $ | 2,557,200 | ||||
Easley, SC, Utility Rev., ASSD GTY, 5%, 12/01/2034 | 2,325,000 | 2,428,997 | ||||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/2039 | 145,000 | 157,174 | ||||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/2044 | 170,000 | 183,658 | ||||||
Piedmont, SC, Municipal Power Agency, FGIC, 6.25%, 1/01/2021 | 2,700,000 | 3,001,023 | ||||||
Piedmont, SC, Municipal Power Agency, “C”, AGM, 5%, 1/01/2030 | 1,000,000 | 1,079,350 | ||||||
Puerto Rico Electric Power Authority Rev., “VV”, NATL, 5.25%, 7/01/2032 | 30,000 | 29,013 | ||||||
South Carolina Public Service Authority Rev., “A”, 5.5%, 1/01/2038 (Prerefunded 1/01/2019) | 2,305,000 | 2,371,200 | ||||||
South Carolina Public Service Authority Rev., “A”, 5%, 12/01/2049 | 1,000,000 | 1,064,750 | ||||||
$ | 12,872,365 |
Issuer | Shares/Par | Value ($) | ||||||
Utilities - Other - 2.5% | ||||||||
California M-S-R Energy Authority Gas Rev., “A”, 6.5%, 11/01/2039 | $ | 685,000 | $ | 961,973 | ||||
Nebraska Central Plains Energy Project, Gas Project Rev., “3”, 5%, 9/01/2042 | 790,000 | 852,434 | ||||||
Public Authority for Colorado Energy Natural Gas Purchase Rev., 6.25%, 11/15/2028 | 130,000 | 162,385 | ||||||
Rock Hill, SC, Utility Systems Rev., 5%, 1/01/2041 | 1,000,000 | 1,112,400 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2021 | 270,000 | 296,635 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2022 | 290,000 | 322,979 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2026 | 570,000 | 662,859 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “C”, 5%, 2/01/2021 | 330,000 | 355,377 | ||||||
$ | 4,727,042 | |||||||
Water & Sewer Utility Revenue - 14.5% | ||||||||
Charleston, SC, Waterworks & Sewer Rev., Capital Improvement, 5%, 1/01/2035 (Prerefunded 1/01/2021) | $ | 1,000,000 | $ | 1,085,850 | ||||
Charleston, SC, Waterworks & Sewer Rev., Refunding Systems, “B”, 5%, 1/01/2030 | 2,400,000 | 2,860,248 | ||||||
Columbia, SC, Waterworks & Sewer Systems Rev., “A”, 5%, 2/01/2025 (Prerefunded 2/01/2021) | 580,000 | 630,930 | ||||||
Columbia, SC, Waterworks & Sewer Systems Rev., “A”, 5%, 2/01/2036 | 3,000,000 | 3,233,280 | ||||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, ASSD GTY, 5%, 7/01/2028 | 35,000 | 35,054 | ||||||
Dorchester County, SC, Waterworks & Sewer Systems Rev., ASSD GTY, 5%, 10/01/2029 (Prerefunded 10/01/2019) | 1,000,000 | 1,048,490 | ||||||
Greenville, SC, Renewable Water Resource Sewer Systems Rev., “A”, 5%, 1/01/2024 (Prerefunded 1/01/2020) | 1,000,000 | 1,056,100 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 7/01/2036 | 90,000 | 96,600 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5.625%, 7/01/2040 (Prerefunded 7/01/2020) | 315,000 | 341,595 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 1/01/2046 | 410,000 | 435,723 | ||||||
Kershaw County, SC, Waterworks System Rev. (Lugoff Water District), “B”, 5%, 7/01/2030 | 500,000 | 572,540 | ||||||
Kershaw County, SC, Waterworks System Rev. (Lugoff Water District), “B”, 5%, 7/01/2035 | 500,000 | 564,355 | ||||||
Lexington, SC, Waterworks & Sewer Systems Rev., ASSD GTY, 5%, 1/15/2039 (Prerefunded 1/15/2020) | 2,000,000 | 2,116,480 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Sewage Disposal System Rev. Refunding Second Lien Local Project), “C-7”, NATL, 5%, 7/01/2032 | 50,000 | 55,145 |
55
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - continued | ||||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Second Lien Local Project), “D-6”, NATL, 5%, 7/01/2036 | $ | 60,000 | $ | 65,604 | ||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Senior Lien Local Project), “D-1”, AGM, 5%, 7/01/2035 | 30,000 | 33,302 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Senior Lien Local Project), “D-1”, AGM, 5%, 7/01/2037 | 70,000 | 77,579 | ||||||
Mount Pleasant, SC, Waterworks & Sewer System Rev., “A”, 5%, 6/01/2036 | 1,000,000 | 1,166,100 | ||||||
Mount Pleasant, SC, Waterworks & Sewer System Rev., “A”, 5%, 6/01/2037 | 1,000,000 | 1,163,480 | ||||||
North Charleston, SC, Sewer District, 5%, 7/01/2039 | 3,425,000 | 3,870,558 |
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - continued | ||||||||
Spartanburg, SC, Sanitary Sewer District Convertible Rev., “B”, 5%, 3/01/2033 | $ | 1,000,000 | $ | 1,099,300 | ||||
Spartanburg, SC, Sanitary Sewer District Convertible Rev., “B”, 5%, 3/01/2034 | 2,000,000 | 2,257,260 | ||||||
Spartanburg, SC, Water System Refunding & Improvement Rev., “B”, 5%, 6/01/2039 | 1,000,000 | 1,148,760 | ||||||
Spartanburg, SC, Waterworks Rev., ASSD GTY, 5%, 6/01/2039 | 2,000,000 | 2,077,640 | ||||||
$ | 27,091,973 | |||||||
Total Municipal Bonds (Identified Cost, $177,150,659) | $ | 180,504,029 | ||||||
Investment Companies (h) - 1.9% | ||||||||
Money Market Funds - 1.9% | ||||||||
MFS Institutional Money Market Portfolio, 1.71% (v) (Identified Cost, $3,567,457) | 3,568,149 | $ | 3,567,792 | |||||
Other Assets, Less Liabilities - 1.3% | 2,461,992 | |||||||
Net Assets - 100.0% | $ | 186,533,813 |
See Portfolio Footnotes and Notes to Financial Statements
56
Table of Contents
PORTFOLIO OF INVESTMENTS
3/31/18
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 - 98.6% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 3.9% | ||||||||
Memphis-Shelby County, TN, Airport Authority Facilities Rev., “A”, ASSD GTY, 5%, 7/01/2039 | $ | 1,000,000 | $ | 1,056,450 | ||||
Memphis-Shelby County, TN, Airport Authority Facilities Rev., “D”, 5%, 7/01/2025 | 1,000,000 | 1,081,630 | ||||||
Metropolitan Government of Nashville, TN, Airport Authority Improvement Rev., “B”, 5%, 7/01/2035 | 1,100,000 | 1,233,870 | ||||||
New York, NY, Transportation Development Corp. Special Facilities Rev. (LaGuardia Airport Terminal B Redevelopment Project), “A”, AGM, 4%, 7/01/2037 | 680,000 | 700,822 | ||||||
$ | 4,072,772 | |||||||
General Obligations - General Purpose - 11.5% | ||||||||
Commonwealth of Massachusetts, General Obligation Consolidated Loan, “G”, 3%, 9/01/2046 | $ | 850,000 | $ | 746,181 | ||||
Commonwealth of Puerto Rico, “A”, NATL, 5.5%, 7/01/2020 | 195,000 | 197,861 | ||||||
Commonwealth of Puerto Rico, Public Improvement Refunding, “A-4”, AGM, 5%, 7/01/2031 | 90,000 | 93,015 | ||||||
Johnson City, TN, 5%, 6/01/2031 (Prerefunded 6/01/2019) | 1,000,000 | 1,038,230 | ||||||
Memphis, TN, “B”, 5%, 4/01/2034 | 1,025,000 | 1,157,696 | ||||||
Memphis, TN, Refunding General Improvement, “B”, 5%, 4/01/2031 | 1,000,000 | 1,133,610 | ||||||
Metropolitan Government of Nashville & Davidson County, TN, 5%, 7/01/2021 | 2,000,000 | 2,138,280 | ||||||
Pigeon Forge, TN, Industrial Development Board, Public Facilities, 5%, 6/01/2034 | 1,000,000 | 1,083,110 | ||||||
Puerto Rico Public Buildings Authority Rev., “M-2”, AMBAC, 10%, 7/01/2035 | 190,000 | 198,833 | ||||||
Shelby County, TN, “A”, 5%, 3/01/2028 | 2,000,000 | 2,210,300 | ||||||
State of Illinois, 5%, 11/01/2027 | 235,000 | 244,424 | ||||||
State of Illinois, “D”, 5%, 11/01/2028 | 250,000 | 259,432 | ||||||
State of Tennessee, “A”, 5%, 10/01/2029 (Prerefunded 10/01/2021) | 1,500,000 | 1,657,035 | ||||||
$ | 12,158,007 | |||||||
General Obligations - Schools - 1.9% | ||||||||
Berks County, PA, Reading School District, AGM, 5%, 3/01/2035 | $ | 25,000 | $ | 28,155 | ||||
Berks County, PA, Reading School District, AGM, 5%, 3/01/2036 | 25,000 | 28,093 | ||||||
Berks County, PA, Reading School District, AGM, 5%, 3/01/2037 | 20,000 | 22,425 | ||||||
Berks County, PA, Reading School District, AGM, 5%, 3/01/2038 | 10,000 | 11,196 | ||||||
Williamson County, TN, School District, 5%, 4/01/2026 | 740,000 | 885,743 |
Issuer | Shares/Par | Value ($) | ||||||
General Obligations - Schools - continued | ||||||||
Williamson County, TN, School District, “A”, 4%, 3/01/2019 | $ | 1,015,000 | $ | 1,037,584 | ||||
$ | 2,013,196 | |||||||
Healthcare Revenue - Hospitals - 19.5% | ||||||||
California Health Facilities Financing Authority Rev. (Providence St. Joseph Health System), “A”, 3%, 10/01/2041 | $ | 400,000 | $ | 360,980 | ||||
California Health Facilities Financing Authority Rev. (Stanford Health System), “A”, 4%, 11/15/2040 | 340,000 | 352,645 | ||||||
Chattanooga, TN, Health Educational & Housing Facility Board Rev. (Catholic Health Initiatives), “A”, 5%, 10/01/2044 | 1,000,000 | 1,072,050 | ||||||
Chattanooga, TN, Health Educational & Housing Facility Board Rev. (Catholic Health Initiatives), “A”, 5.25%, 1/01/2045 | 500,000 | 535,210 | ||||||
Chattanooga, TN, Health Educational & Housing Facility Board Rev. (Catholic Health Initiatives), “D”, 6.25%, 10/01/2033 | 1,000,000 | 1,023,910 | ||||||
DeKalb County, GA, Hospital Authority Rev. (DeKalb Medical Center, Inc.), 6.125%, 9/01/2040 | 295,000 | 315,995 | ||||||
Escambia County, FL, Health Facilities Authority (Baptist Hospital, Inc.), “A”, 6%, 8/15/2036 | 680,000 | 733,360 | ||||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 7%, 8/15/2044 (Prerefunded 8/15/2019) | 405,000 | 433,407 | ||||||
Jackson, TN, Hospital Rev. (Jackson-Madison County General Hospital), 5%, 4/01/2028 | 1,500,000 | 1,702,185 | ||||||
Jackson, TN, Hospital Rev., Unfunded Balance, 5.625%, 4/01/2038 | 270,000 | 270,745 | ||||||
Johnson City, TN, Health & Education Financing Authority Rev. (Johnson City Medical Center Hospital), ETM, 5%, 7/01/2018 | 20,000 | 20,042 | ||||||
Kentucky Economic Development Finance Authority Hospital Rev. (Owensboro Medical Health System, Inc.), “A”, 6.375%, 6/01/2040 (Prerefunded 6/01/2020) | 790,000 | 864,655 | ||||||
Kentucky Economic Development Finance Authority Hospital Rev. (Owensboro Medical Health System, Inc.), “A”, 6.5%, 3/01/2045 (Prerefunded 6/01/2020) | 265,000 | 290,445 | ||||||
Knox County, TN, Health, Educational & Housing Facility Board Hospital Rev. (Covenant Health), “A”, 5%, 1/01/2024 | 1,000,000 | 1,114,950 | ||||||
Knox County, TN, Health, Educational & Housing Facility Board Hospital Rev. (Covenant Health), “A”, 5%, 1/01/2033 | 1,000,000 | 1,125,740 |
57
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Knox County, TN, Health, Educational & Housing Facility Board Rev. (University Health System, Inc.), 5%, 4/01/2036 | $ | 750,000 | $ | 816,832 | ||||
Knox County, TN, Health, Educational & Housing Facility Board Rev. (University Health System, Inc.), 5%, 9/01/2036 | 1,000,000 | 1,105,380 | ||||||
Metropolitan Government of Nashville & Davidson County, TN, Health & Educational Facilities Board Rev. (Vanderbilt University Medical Center), “A”, 5%, 7/01/2040 | 1,750,000 | 1,940,452 | ||||||
Metropolitan Government of Nashville & Davidson County, TN, Health & Educational Facilities Board Rev. (Vanderbilt University Medical Center), “A” , 4%, 7/01/2047 | 1,500,000 | 1,525,470 | ||||||
Miami-Dade County, FL, Health Facilities Authority Hospital Rev., 6%, 8/01/2030 (Prerefunded 8/01/2020) | 60,000 | 65,560 | ||||||
Miami-Dade County, FL, Health Facilities Authority Hospital Rev., Unfunded Balance, 6%, 8/01/2030 | 25,000 | 26,960 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6%, 10/01/2027 (Prerefunded 10/01/2019) | 510,000 | 541,834 | ||||||
New Jersey Health Care Facilities, Financing Authority Rev. (University Hospital), “A”, AGM, 5%, 7/01/2046 | 100,000 | 110,192 | ||||||
Rutherford County, TN, Health & Educational Facilities Board Rev. (Ascension Health Senior Credit Group), “C”, 5%, 11/15/2040 | 1,500,000 | 1,570,965 | ||||||
Shelby County, TN, Health, Educational & Housing Facilities Board Rev. (Methodist Healthcare), “A”, 5%, 5/01/2035 | 1,500,000 | 1,720,125 | ||||||
St. Petersburg, FL, Health Facilities Authority (All Children Hospital), “A”, 6.5%, 11/15/2039 (Prerefunded 11/15/2019) | 170,000 | 182,500 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (ProHealth Care, Inc. Obligated Group), 6.625%, 2/15/2039 (Prerefunded 2/15/2019) | 785,000 | 817,680 | ||||||
$ | 20,640,269 | |||||||
Healthcare Revenue - Long Term Care - 3.7% | ||||||||
Blount County, TN, Health & Educational Facilities Board Rev. (Asbury, Inc.), “A”, 5%, 1/01/2047 | $ | 750,000 | $ | 779,557 | ||||
Johnson City, TN, Health & Educational Facilities Board Rev. (Appalachian Christian Village Project), “A”, 5%, 2/15/2043 | 1,000,000 | 806,760 | ||||||
Nashville & Davidson County, TN, Metropolitan Government Health & Educational Facilities Board Rev. (The Blakeford at Green Hills), 5%, 7/01/2037 | 1,000,000 | 1,053,790 | ||||||
Shelby County, TN, Health, Educational & Housing Facility Board (Trezevant Manor Project), “A’”, 5%, 9/01/2037 | 750,000 | 680,610 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Long Term Care - continued | ||||||||
Shelby County, TN, Health, Educational & Housing Facility Board Residential Care Facility Mortgage Rev. (Village at Germantown), 5.25%, 12/01/2049 | $ | 550,000 | $ | 573,804 | ||||
$ | 3,894,521 | |||||||
Industrial Revenue - Other - 0.6% | ||||||||
New York Liberty Development Corp. Rev. (Goldman Sachs Headquarters), 5.25%, 10/01/2035 | $ | 550,000 | $ | 682,517 | ||||
Miscellaneous Revenue - Entertainment & Tourism - 2.5% | ||||||||
Memphis-Shelby County, TN, Sports Authority, Inc. Rev., “B”, 5.375%, 11/01/2029 | $ | 2,500,000 | $ | 2,636,775 | ||||
Miscellaneous Revenue - Other - 3.6% | ||||||||
Metropolitan Government of Nashville & Davidson County, TN, Sports Authority Rev., Public Improvement, “A”, 5%, 8/01/2021 | $ | 535,000 | $ | 586,044 | ||||
Metropolitan Government of Nashville & Davidson County, TN, Sports Authority Rev., Public Improvement, “A”, 5%, 8/01/2023 | 1,205,000 | 1,364,639 | ||||||
Metropolitan Nashville Airport Authority, Special Facilities Rev. (Aero Nashville LLC Project), 5.2%, 7/01/2026 | 725,000 | 746,598 | ||||||
New York Liberty Development Corp., Liberty Rev. (7 World Trade Center Project), 5%, 9/15/2040 | 980,000 | 1,078,186 | ||||||
$ | 3,775,467 | |||||||
Sales & Excise Tax Revenue - 3.0% | ||||||||
Chicago, IL, Transit Authority Sales Tax Receipts Rev., AGM, 5%, 12/01/2046 | $ | 780,000 | $ | 850,894 | ||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6.5%, 1/15/2030 | 480,000 | 527,731 | ||||||
Guam Government Business Privilege Tax Rev., “A”, 5.25%, 1/01/2036 | 300,000 | 312,351 | ||||||
Guam Government Business Privilege Tax Rev., “D”, 5%, 11/15/2031 | 725,000 | 763,889 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, AMBAC, 0%, 8/01/2054 | 2,890,000 | 372,174 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2042 | 225,000 | 52,286 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2045 | 60,000 | 11,846 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2046 | 1,255,000 | 235,011 | ||||||
$ | 3,126,182 |
58
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Secondary Schools - 0.1% | ||||||||
North Texas Education Finance Corp., Education Rev. (Uplift Education), “A”, 5.125%, 12/01/2042 | $ | 130,000 | $ | 136,361 | ||||
Single Family Housing - State - 1.2% | ||||||||
Tennessee Housing Development Agency Rev., Homeownership Program, 5%, 7/01/2029 | $ | 390,000 | $ | 391,685 | ||||
Tennessee Housing Development Agency Rev., Homeownership Program, “2”, 4.55%, 7/01/2024 | 810,000 | 821,599 | ||||||
$ | 1,213,284 | |||||||
State & Agency - Other - 1.0% | ||||||||
Hardeman County, TN, Industrial Development Board Rev., “B”, ASSD GTY, 5%, 6/01/2040 (Prerefunded 6/01/2018) | $ | 1,000,000 | $ | 1,005,550 | ||||
State & Local Agencies - 11.2% | ||||||||
Chattanooga, TN, Industrial Development Board, Lease Rental Rev. (Southside Redevelopment Corp.), 5%, 10/01/2020 | $ | 700,000 | $ | 750,673 | ||||
Chattanooga, TN, Industrial Development Board, Lease Rental Rev. (Southside Redevelopment Corp.), 5%, 10/01/2024 | 1,000,000 | 1,073,910 | ||||||
Colorado State University Board of Governors, System Enterprise Refunding Rev., “E”, 4%, 3/01/2043 | 560,000 | 582,786 | ||||||
Delaware Valley, PA, Regional Finance Authority, “C”, FLR, 2.094% (LIBOR-3mo. + 0.75%), 6/01/2037 | 795,000 | 704,776 | ||||||
Memphis-Shelby County, TN, Economic Growth Engine Development Board Rev., “B”, 5%, 11/01/2030 | 2,000,000 | 2,330,100 | ||||||
Orangeburg County, SC, Facilities Corp. Installment Purchase Rev. (Detention Center Project), 4%, 12/01/2042 | 335,000 | 340,635 | ||||||
State Public School Building Authority, PA, School Lease Rev. (The School District of Philadelphia Project), “A”, AGM, 5%, 6/01/2033 | 665,000 | 743,158 | ||||||
Tennessee School Board Authority, Higher Education Facilities Rev., 5.125%, 5/01/2033 (Prerefunded 5/01/2018) | 360,000 | 360,986 | ||||||
Tennessee School Board Authority, Higher Education Facilities Second Program, “A”, 5%, 11/01/2036 | 1,500,000 | 1,764,495 | ||||||
Tennessee School Board Authority, Higher Education Facilities Second Program, “B”, 5%, 11/01/2028 | 500,000 | 587,305 | ||||||
Tennessee School Board Authority, Higher Education Facilities Second Program, “B”, 5%, 11/01/2045 | 1,285,000 | 1,468,305 | ||||||
Tennessee School Bond Authority, “A”, 5%, 11/01/2043 | 1,000,000 | 1,109,310 | ||||||
$ | 11,816,439 |
Issuer | Shares/Par | Value ($) | ||||||
Tax - Other - 2.8% | ||||||||
Commonwealth of Puerto, Rico Infrastructure Financing Authority Rev., “C”, AMBAC, 5.5%, 7/01/2025 | $ | 25,000 | $ | 25,827 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/2024 (Prerefunded 12/01/2019) | 150,000 | 159,140 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/2029 (Prerefunded 12/01/2019) | 50,000 | 53,251 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2033 | 170,000 | 179,204 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2034 | 105,000 | 110,373 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2035 | 105,000 | 110,062 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2036 | 60,000 | 62,759 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5%, 12/01/2046 | 175,000 | 181,382 | ||||||
Memphis-Shelby County, TN, Economic Development Growth Engine Industrial Development Board, Senior Tax Rev. (Graceland Project) “A”, 4.75%, 7/01/2027 | 400,000 | 415,132 | ||||||
Memphis-Shelby County, TN, Economic Development Growth Engine Industrial Development Board, Senior Tax Rev. (Graceland Project) “A”, 5.5%, 7/01/2037 | 100,000 | 104,561 | ||||||
Puerto Rico Convention Center District Authority, Hotel Occupancy Tax Rev., “A”, AMBAC, 5%, 7/01/2031 | 230,000 | 222,628 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2024 | 260,000 | 268,567 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2026 | 415,000 | 428,284 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2027 | 380,000 | 391,354 | ||||||
Virgin Islands Public Finance Authority Rev., Matching Fund Loan Note, “A”, AGM, 5%, 10/01/2025 | 245,000 | 256,691 | ||||||
$ | 2,969,215 | |||||||
Tobacco - 1.0% | ||||||||
Illinois Railsplitter Tobacco Settlement Authority Rev., 6%, 6/01/2028 (Prerefunded 6/01/2021) | $ | 200,000 | $ | 224,972 | ||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.5%, 6/01/2023 | 240,000 | 240,917 | ||||||
Virgin Islands Tobacco Settlement Financing Corp., 5%, 5/15/2031 | 575,000 | 576,035 | ||||||
$ | 1,041,924 |
59
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Toll Roads - 0.5% | ||||||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 6%, 1/01/2037 | $ | 165,000 | $ | 184,580 | ||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 5.5%, 1/01/2042 | 320,000 | 349,642 | ||||||
$ | 534,222 | |||||||
Transportation - Special Tax - 3.1% | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “CC”, AGM, 5.5%, 7/01/2028 | $ | 745,000 | $ | 811,290 | ||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “CC”, AGM, 5.25%, 7/01/2036 | 260,000 | 277,056 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “J”, NATL, 5%, 7/01/2029 | 15,000 | 14,486 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “L”, AMBAC, 5.25%, 7/01/2038 | 765,000 | 741,759 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “L”, NATL, 5.25%, 7/01/2035 | 270,000 | 256,748 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, AMBAC, 5.5%, 7/01/2029 | 655,000 | 670,445 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, AMBAC, 5.25%, 7/01/2031 | 40,000 | 39,658 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, ASSD GTY, 5.25%, 7/01/2034 | 105,000 | 111,740 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, NATL, 5.25%, 7/01/2032 | 60,000 | 58,027 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, NATL, 5.25%, 7/01/2033 | 90,000 | 86,630 | ||||||
New Jersey Transportation Trust Fund Authority, Federal Highway Reimbursement Rev., “A-1”, 5%, 6/15/2027 | 200,000 | 222,118 | ||||||
$ | 3,289,957 | |||||||
Universities - Colleges - 8.5% | ||||||||
Claiborne County, TN, Industrial Development Board Rev. (Lincoln Memorial University Project), 6.625%, 10/01/2039 | $ | 500,000 | $ | 524,870 | ||||
Claiborne County, TN, Industrial Development Board Rev. (Lincoln Memorial University Project), 6.125%, 10/01/2040 | 250,000 | 265,177 | ||||||
Franklin County, TN, Health & Educational Facilities Board Rev. (University of the South), 5%, 9/01/2028 | 500,000 | 551,450 | ||||||
Franklin County, TN, Health & Educational Facilities Board Rev. (University of the South), 5%, 9/01/2030 | 375,000 | 412,601 |
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
Metropolitan Government of Nashville & Davidson County, TN, Health & Educational Facilities Board Rev. (Lipscomb University Project), “A”, 5%, 10/01/2041 | $ | 1,000,000 | $ | 1,083,400 | ||||
Metropolitan Government of Nashville & Davidson County, TN, Health & Educational Facilities Board Rev. (Vanderbilt University Medical Center), 5%, 10/01/2034 (Prerefunded 10/01/2019) | 535,000 | 560,536 | ||||||
Metropolitan Government of Nashville & Davidson County, TN, Health & Educational Facilities Board Rev. (Vanderbilt University Medical Center), 5%, 10/01/2034 (Prerefunded 10/01/2019) | 1,965,000 | 2,061,776 | ||||||
Pennsylvania Higher Educational Facilities Authority Rev., AGM, 3%, 6/15/2045 | 520,000 | 456,877 | ||||||
Pinellas County, FL, Educational Facilities Authority Rev. (Barry University), 6%, 10/01/2041 | 120,000 | 129,869 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.375%, 12/01/2021 | 20,000 | 19,925 | ||||||
Shelby County, TN, Health, Educational & Housing Facility Board, Educational Facilities Rev. (Rhodes College), 4%, 8/01/2035 | 605,000 | 641,318 | ||||||
Shelby County, TN, Health, Educational & Housing Facility Board, Educational Facilities Rev. (Rhodes College), 4%, 8/01/2040 | 1,120,000 | 1,165,237 | ||||||
Shelby County, TN, Health, Educational & Housing Facility Board, Educational Facilities Rev. (Rhodes College), 5.5%, 8/01/2040 (Prerefunded 8/01/2021) | 1,000,000 | 1,116,560 | ||||||
University of Puerto Rico Rev., “P”, NATL, 5%, 6/01/2025 | 15,000 | 14,831 | ||||||
$ | 9,004,427 | |||||||
Universities - Dormitories - 0.5% | ||||||||
Chattanooga, TN, Health Educational & Housing Facility Board Rev. (CDFI Phase I LLC, University of Tennessee at Chattanooga), 5%, 10/01/2035 | $ | 500,000 | $ | 544,935 | ||||
Utilities - Municipal Owned - 6.8% | ||||||||
Citizens Gas Utility District, TN, Gas Rev., 5%, 5/01/2035 (Prerefunded 5/01/2019) | $ | 580,000 | $ | 600,346 | ||||
Citizens Gas Utility District, TN, Gas Rev. Unrefunded, 5%, 5/01/2035 | 420,000 | 432,222 | ||||||
Clarksville, TN, Electric System Rev., “A”, 5%, 9/01/2034 | 1,250,000 | 1,346,413 | ||||||
Guam Power Authority Rev., “A”, 5.5%, 10/01/2030 (Prerefunded 10/01/2020) | 300,000 | 326,649 | ||||||
Guam Power Authority Rev., “A”, 5.5%, 10/01/2040 (Prerefunded 10/01/2020) | 470,000 | 511,750 | ||||||
Johnson City, TN, Energy Authority Electric System Rev., 5%, 5/01/2029 | 545,000 | 647,242 |
60
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Utilities - Municipal Owned - continued | ||||||||
Johnson City, TN, Energy Authority Electric System Rev., 5%, 5/01/2030 | $ | 630,000 | $ | 745,397 | ||||
Long Island, NY, Power Authority, Electric Systems Rev., “A”, 6%, 5/01/2033 (Prerefunded 5/01/2019) | 195,000 | 204,042 | ||||||
Memphis, TN, Electric Systems Rev., 5%, 12/01/2034 | 1,000,000 | 1,140,630 | ||||||
Metropolitan Government of Nashville & Davidson County, TN, Electric System Rev., “A”, 5%, 5/15/2037 | 1,000,000 | 1,168,020 | ||||||
Puerto Rico Electric Power Authority Rev., “VV”, NATL, 5.25%, 7/01/2032 | 15,000 | 14,507 | ||||||
$ | 7,137,218 | |||||||
Utilities - Other - 2.0% | ||||||||
Central Plains Energy Project, NE, Gas Project Rev. (Project No.3), “A”, 5%, 9/01/2036 | $ | 70,000 | $ | 82,794 | ||||
Central Plains Energy Project, NE, Gas Project Rev. (Project No.3), “A”, 5%, 9/01/2042 | 145,000 | 174,336 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2021 | 225,000 | 247,196 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2022 | 115,000 | 128,078 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2023 | 85,000 | 95,980 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2026 | 1,200,000 | 1,395,492 | ||||||
$ | 2,123,876 | |||||||
Water & Sewer Utility Revenue - 9.7% | ||||||||
Clarksville, TN, Water, Sewer & Gas Rev., 5%, 2/01/2029 (Prerefunded 2/01/2023) | $ | 1,000,000 | $ | 1,131,960 | ||||
Clarksville, TN, Water, Sewer & Gas Rev., 4%, 2/01/2037 | 1,000,000 | 1,060,900 | ||||||
Clarksville, TN, Water, Sewer & Gas Rev., 4%, 2/01/2038 | 500,000 | 530,015 | ||||||
Clarksville, TN, Water, Sewer & Gas Rev., 5%, 2/01/2041 | 1,000,000 | 1,146,830 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 7/01/2036 | 65,000 | 69,766 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 7/01/2036 | 110,000 | 118,910 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 7/01/2037 | 135,000 | 145,652 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 7/01/2040 | 380,000 | 408,150 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 1/01/2046 | 300,000 | 318,822 | ||||||
Metropolitan Government of Nashville & Davidson County, TN, Water & Sewer Rev., 5%, 7/01/2032 | 2,000,000 | 2,247,400 |
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - continued | ||||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Sewage Disposal System Rev. Refunding Second Lien Local Project), “C-7”, NATL, 5%, 7/01/2032 | $ | 30,000 | $ | 33,087 | ||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Second Lien Local Project), “D-6”, NATL, 5%, 7/01/2036 | 35,000 | 38,269 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Senior Lien Local Project), “D-1”, AGM, 5%, 7/01/2035 | 20,000 | 22,201 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Senior Lien Local Project), “D-1”, AGM, 5%, 7/01/2037 | 45,000 | 49,872 | ||||||
Mississippi Development Bank Special Obligation (City of Jackson Water and Sewer System Rev. Bond Project), AGM, 6.875%, 12/01/2040 | 65,000 | 78,965 | ||||||
South Blount County, TN, Utility District Waterworks Rev., Prerefunded & Improvement, AGM, 5%, 12/01/2033 (Prerefunded 12/01/2019) | 680,000 | 715,782 | ||||||
South Blount County, TN, Utility District Waterworks Rev., Unrefunded Balance & Improvement, AGM, 5%, 12/01/2033 | 1,460,000 | 1,532,883 | ||||||
Wilson County, TN, West Wilson Utility District Waterworks Rev., 5%, 6/01/2030 | 550,000 | 633,006 | ||||||
$ | 10,282,470 | |||||||
Total Municipal Bonds (Identified Cost, $102,128,565) | $ | 104,099,584 | ||||||
Investment Companies (h) - 0.3% | ||||||||
Money Market Funds - 0.3% | ||||||||
MFS Institutional Money Market Portfolio, 1.71% (v) (Identified Cost, $314,714) | 314,777 | $ | 314,746 | |||||
Other Assets, Less Liabilities - 1.1% | 1,213,796 | |||||||
Net Assets - 100.0% | $ | 105,628,126 |
See Portfolio Footnotes and Notes to Financial Statements
61
Table of Contents
PORTFOLIO OF INVESTMENTS
3/31/18
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 - 99.4% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 3.3% | ||||||||
Chicago, IL, O’Hare International Airport Rev., Senior Lien, “B”, 5%, 1/01/2030 | $ | 510,000 | $ | 575,489 | ||||
Chicago, IL, O’Hare International Airport Rev., Third Lien, “A”, 5.625%, 1/01/2035 (Prerefunded 1/01/2021) | 695,000 | 765,265 | ||||||
Chicago, IL, O’Hare International Airport Rev., Third Lien, “A”, 5.625%, 1/01/2035 | 160,000 | 174,154 | ||||||
Metropolitan Washington, DC, Airport Authority Rev., 5.375%, 10/01/2028 | 1,500,000 | 1,531,455 | ||||||
Metropolitan Washington, DC, Airport Authority Rev., “B”, 5%, 10/01/2027 | 980,000 | 1,125,559 | ||||||
Metropolitan Washington, DC, Airport | ||||||||
Authority Rev., “B”, 5%, 10/01/2028 | 1,000,000 | 1,144,160 | ||||||
Norfolk, VA, Airport Authority Rev., AGM, 5%, 7/01/2023 | 2,000,000 | 2,185,540 | ||||||
Norfolk, VA, Airport Authority Rev., AGM, 5%, 7/01/2024 | 1,000,000 | 1,089,150 | ||||||
San Francisco, CA, City & County Airports Commission, International Airport Rev., “B”, 5%, 5/01/2046 | 1,160,000 | 1,294,444 | ||||||
$ | 9,885,216 | |||||||
General Obligations - General Purpose - 8.4% | ||||||||
Chesapeake, VA, “B”, 5%, 6/01/2023 | $ | 1,930,000 | $ | 2,113,292 | ||||
Commonwealth of Puerto Rico, “A”, NATL, 5.5%, 7/01/2020 | 790,000 | 801,589 | ||||||
Commonwealth of Puerto Rico, Public Improvement Refunding, “A-4”, AGM, 5%, 7/01/2031 | 240,000 | 248,040 | ||||||
Guam Government, “A”, 6.75%, 11/15/2029 (Prerefunded 11/15/2019) | 925,000 | 997,150 | ||||||
Guam Government, “A”, 7%, 11/15/2039 (Prerefunded 11/15/2019) | 110,000 | 119,016 | ||||||
Loudoun County , VA, General Obligation Public Improvement, “A”, 5%, 12/01/2022 | 3,000,000 | 3,397,140 | ||||||
Loudoun County , VA, General Obligation Public Improvement, “B”, 5%, 11/01/2018 | 2,300,000 | 2,345,839 | ||||||
Lynchburg, VA, Public Improvement, 5%, 12/01/2023 | 1,000,000 | 1,081,400 | ||||||
Lynchburg, VA, Public Improvement, 5%, 6/01/2026 | 1,000,000 | 1,156,110 | ||||||
Portsmouth, VA General Obligation Public | ||||||||
Improvement, “A”, 5%, 2/01/2032 (Prerefunded 2/01/2023) | 440,000 | 496,985 | ||||||
Portsmouth, VA General Obligation Public Improvement, “A”, 5%, 2/01/2032 | 60,000 | 67,127 | ||||||
Puerto Rico Public Buildings Authority Rev., “H”, AMBAC, 5.5%, 7/01/2018 | 575,000 | 577,507 | ||||||
Puerto Rico Public Buildings Authority Rev., “M-2”, AMBAC, 10%, 7/01/2035 | 170,000 | 177,903 | ||||||
Puerto Rico Public Buildings Authority Rev., Guaranteed, “D”, AMBAC, 5.45%, 7/01/2030 | 380,000 | 380,011 |
Issuer | Shares/Par | Value ($) | ||||||
General Obligations - General Purpose - continued | ||||||||
Richmond, VA, Public Improvement, “A”, 5%, 3/01/2024 (Prerefunded 3/01/2023) | $ | 1,785,000 | $ | 2,028,010 | ||||
Richmond, VA, Public Improvement, “A”, 5%, 3/01/2028 (Prerefunded 3/01/2023) | 220,000 | 249,951 | ||||||
Richmond, VA, Public Improvement, “D”, 5%, 3/01/2032 | 800,000 | 1,001,616 | ||||||
Richmond, VA, Public Improvement, “D”, 5%, 3/01/2033 | 1,000,000 | 1,259,670 | ||||||
State of Illinois, 5%, 11/01/2027 | 660,000 | 686,466 | ||||||
State of Illinois, “D”, 5%, 11/01/2028 | 655,000 | 679,713 | ||||||
Suffolk, VA, General Obligation, 5%, 12/01/2022 | 2,480,000 | 2,805,922 | ||||||
Virginia Beach, VA, Public Improvement, “B”, 5%, 4/01/2022 | 2,000,000 | 2,233,320 | ||||||
$ | 24,903,777 | |||||||
General Obligations - Schools - 0.1% | ||||||||
Berks County, PA, Reading School District, AGM, 5%, 3/01/2035 | $ | 65,000 | $ | 73,202 | ||||
Berks County, PA, Reading School District, AGM, 5%, 3/01/2036 | 70,000 | 78,660 | ||||||
Berks County, PA, Reading School District, AGM, 5%, 3/01/2037 | 55,000 | 61,670 | ||||||
Berks County, PA, Reading School District, AGM, 5%, 3/01/2038 | 25,000 | 27,991 | ||||||
$ | 241,523 | |||||||
Healthcare Revenue - Hospitals - 14.2% | ||||||||
California Health Facilities Financing Authority Rev. (Stanford Health System), “A”, 4%, 11/15/2040 | $ | 975,000 | $ | 1,011,260 | ||||
Commonwealth of Virginia, University Health System General Rev., “A”, 4%, 7/01/2040 | 2,000,000 | 2,065,520 | ||||||
Fairfax County, VA, Industrial Development | ||||||||
Authority Health Care Rev. (Inova Health System Project), 5.5%, 5/15/2035 (Prerefunded 5/15/2019) | 530,000 | 552,175 | ||||||
Fairfax County, VA, Industrial Development | ||||||||
Authority Health Care Rev. (Inova Health System Project), “A”, 5%, 5/15/2031 | 2,000,000 | 2,328,460 | ||||||
Fairfax County, VA, Industrial Development | ||||||||
Authority Health Care Rev., Unrefunded Balance , 5.5%, 5/15/2035 (Prerefunded 5/15/2019) | 970,000 | 1,011,128 | ||||||
Fairfax County, VA, Industrial Development | ||||||||
Authority Rev. (Inova Health System Project), “A”, 5%, 5/15/2044 | 2,000,000 | 2,216,060 | ||||||
Fairfax County, VA, Industrial Development | ||||||||
Authority Rev. (Inova Health System Project), “C”, 5%, 5/15/2025 (Prerefunded 5/15/2019) | 500,000 | 518,450 |
62
Table of Contents
Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Fredericksburg, VA, Economic Development Authority, Hospital Facilities Rev. (Mary Washington Healthcare Obligated Group), 5%, 6/15/2031 | $ | 750,000 | $ | 831,120 | ||||
Fredericksburg, VA, Economic Development Authority, Hospital Facilities Rev. (Mary Washington Healthcare Obligated Group), 5%, 6/15/2033 | 1,000,000 | 1,103,410 | ||||||
Fredericksburg, VA, Economic Development Authority, Hospital Facilities Rev. (Medicorp Health System), 5.25%, 6/15/2019 | 1,125,000 | 1,167,007 | ||||||
Henrico County, VA, Economic Development Authority Rev. (Bon Secours Health Systems, Inc.), “B-2”, AGM, 5.25%, 11/01/2042 | 1,705,000 | 1,835,484 | ||||||
Henrico County, VA, Industrial Development Authority Rev. (Bon Secours Health Systems, Inc.), NATL, 6.25%, 8/15/2020 | 1,160,000 | 1,227,802 | ||||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 7%, 8/15/2044 (Prerefunded 8/15/2019) | 970,000 | 1,038,036 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.25%, 7/01/2031 | 375,000 | 386,018 | ||||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.375%, 7/01/2041 | 395,000 | 404,160 | ||||||
Lynchburg, VA, Economic Development Authority Rev. (Centra Health), “A”, 5%, 1/01/2047 | 3,000,000 | 3,307,800 | ||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6%, 10/01/2027 (Prerefunded 10/01/2019) | 635,000 | 674,637 | ||||||
Norfolk, VA, Economic Development Authority Health Care Facilities Rev. (Sentara Healthcare), “B”, 5%, 11/01/2036 | 2,875,000 | 3,177,450 | ||||||
Roanoke, VA, Economic Development Authority Hospital Rev. (Carilion Medical Center), 5%, 7/01/2033 | 2,385,000 | 2,525,524 | ||||||
Roanoke, VA, Industrial Development Authority Hospital Rev. (Carilion Health Systems), “B”, 5%, 7/01/2038 (Prerefunded 7/01/2020) | 45,000 | 48,204 | ||||||
Roanoke, VA, Industrial Development Authority Hospital Rev. (Carilion Health Systems), “B”, AGM, 5%, 7/01/2038 | 2,955,000 | 3,097,313 | ||||||
Royal Oak, MI, Hospital Finance Authority Rev. (William Beaumont Hospital), “V”, 8.25%, 9/01/2039 (Prerefunded 9/01/2018) | 1,805,000 | 1,854,096 | ||||||
Virginia Small Business Financing Authority, Healthcare Facility Rev. (Sentra Healthcare), 5%, 11/01/2040 | 4,000,000 | 4,226,200 | ||||||
Washington County, VA, Industrial Development Authority, Hospital Facilities Rev. (Mountain States Health Alliance), “C”, 7.5%, 7/01/2029 | 1,400,000 | 1,457,302 |
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 6.75%, 7/01/2029 (Prerefunded 7/01/2019) | $ | 220,000 | $ | 232,995 | ||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 7%, 7/01/2039 (Prerefunded 7/01/2019) | 530,000 | 562,929 | ||||||
Winchester, VA, Economic Development Authority Hospital Rev. (Valley Health System Obligated Group), “A”, 5%, 1/01/2044 | 2,000,000 | 2,174,320 | ||||||
Winchester, VA, Economic Development Authority Rev., (Valley Health System Obligated Group), 5%, 1/01/2028 | 600,000 | 691,308 | ||||||
Winchester, VA, Economic Development Authority Rev., (Valley Health System Obligated Group), 5%, 1/01/2030 | 400,000 | 456,980 | ||||||
$ | 42,183,148 | |||||||
Healthcare Revenue - Long Term Care - 4.0% | ||||||||
Albemarle County, VA, Economic Development Authority, Residential Care Facilities Rev. (Westminster-Canterbury Blue Ridge), “A”, 5%, 1/01/2042 | $ | 1,000,000 | $ | 1,035,770 | ||||
Alexandria, VA, Industrial Development Authority, Residential Care Facilities Mortgage Rev. (Goodwin House, Inc.), 5%, 10/01/2030 | 1,000,000 | 1,122,640 | ||||||
Chesterfield County, VA, Health Center Commission Residential Care Facility, 6.25%, 12/01/2038 | 750,000 | 750,413 | ||||||
Fairfax County, VA, Economic Development Authority, Residential Care Facilities (Goodwin House, Inc.), 5%, 10/01/2036 | 1,000,000 | 1,112,330 | ||||||
Henrico County, VA, Economic Development Authority Rev., Residential Care Facility (Lifespire of Virginia.), “C”, 5%, 12/01/2037 | 765,000 | 818,167 | ||||||
Henrico County, VA, Economic Development Authority Rev., Residential Care Facility (Virginia United Methodist Homes, Inc.), 5%, 6/01/2024 | 395,000 | 424,072 | ||||||
Henrico County, VA, Economic Development Authority Rev., Residential Care Facility (Virginia United Methodist Homes, Inc.), 5%, 6/01/2025 | 385,000 | 410,545 | ||||||
James City County, VA, Economic | ||||||||
Development Authority, Residential Care | ||||||||
Facilities Rev. (Virginia United Methodist | ||||||||
Homes of Williamsburg), “A”, 2%, 10/01/2048 | 200,800 | 15,060 | ||||||
Lexington, VA, Industrial Development Authority Residential Care Facilities (Kendal at Lexington), 4%, 1/01/2037 | 1,000,000 | 1,016,950 | ||||||
Lexington, VA, Industrial Development Authority Residential Care Facilities (Kendal at Lexington), “A”, 5%, 1/01/2042 | 1,000,000 | 1,080,330 | ||||||
Norfolk, VA, Redevelopment & Housing Authority Rev. (Fort Norfolk Retirement Community), 5.375%, 1/01/2046 | 500,000 | 523,100 |
63
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Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Long Term Care - continued | ||||||||
Prince William County, VA, Industrial Development Authority, Residential Care Facilities Rev. (Westminster at Lake Ridge), 5%, 1/01/2037 | $ | 1,000,000 | $ | 1,074,650 | ||||
Suffolk, VA, Economic Development Facilities First Mortgage Rev. (Lake Prince Center, Inc.), 5%, 9/01/2031 | 1,000,000 | 1,080,410 | ||||||
Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7%, 11/01/2030 (Prerefunded 11/01/2020) | 140,000 | 157,574 | ||||||
Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7.125%, 11/01/2040 (Prerefunded 11/01/2020) | 265,000 | 299,095 | ||||||
Travis County, TX, Health Facilities Development Corp. Rev., Unrefunded Balance, (Westminster Manor Health), 7%, 11/01/2030 | 25,000 | 26,972 | ||||||
Virginia Small Business Financing Authority, Residential Care Facility Rev. (Pinnacle Living), ’’C’, 5%, 6/01/2042 | 1,000,000 | 1,053,320 | ||||||
$ | 12,001,398 | |||||||
Industrial Revenue - Other - 1.3% | ||||||||
New York Liberty Development Corp. Rev. (Goldman Sachs Headquarters), 5.25%, 10/01/2035 | $ | 3,010,000 | $ | 3,735,229 | ||||
Industrial Revenue - Paper - 0.1% | ||||||||
Valparaiso, IN, Exempt Facilities Rev. (Pratt Paper LLC Project), 6.75%, 1/01/2034 | $ | 100,000 | $ | 117,512 | ||||
Valparaiso, IN, Exempt Facilities Rev. (Pratt Paper LLC Project), 7%, 1/01/2044 | 130,000 | 153,482 | ||||||
West Point, VA, Industrial Development Authority, Solid Waste Disposal Rev. (Chesapeake Corp.), “A”, 6.375%, 3/01/2019 (a)(d) | 1,683,272 | 34 | ||||||
$ | 271,028 | |||||||
Miscellaneous Revenue - Other - 0.0% | ||||||||
Summit County, OH, Port Authority Building Rev. (Flats East Development Recovery Zone Facility Bonds), 6.875%, 5/15/2040 | $ | 80,000 | $ | 88,103 | ||||
Multi-Family Housing Revenue - 6.0% | ||||||||
Arlington County, VA, Industrial Development Authority Rev. (Colonial Village), FNMA, 5.15%, 11/01/2031 (Put Date 11/01/2019) | $ | 2,415,000 | $ | 2,422,704 | ||||
Virginia Housing Development Authority Rev., Rental Housing, “B”, 5.5%, 6/01/2030 | 1,450,000 | 1,506,217 | ||||||
Virginia Housing Development Authority Rev., Rental Housing, “B”, 5%, 6/01/2045 | 3,050,000 | 3,170,688 | ||||||
Virginia Housing Development Authority Rev., Rental Housing, “E”, 4.8%, 10/01/2039 | 3,000,000 | 3,071,520 | ||||||
Virginia Housing Development Authority Rev., Rental Housing, “F”, 4.8%, 4/01/2037 | 1,330,000 | 1,375,393 | ||||||
Virginia Housing Development Authority Rev., Rental Housing, “F”, 5.1%, 1/01/2041 | 3,770,000 | 3,973,203 |
Issuer | Shares/Par | Value ($) | ||||||
Multi-Family Housing Revenue - continued | ||||||||
Virginia Housing Development Authority Rev., Rental Housing, “F”, 5%, 4/01/2045 | $ | 2,125,000 | $ | 2,201,181 | ||||
$ | 17,720,906 | |||||||
Port Revenue - 1.2% | ||||||||
Virginia Port Authority Facilities Rev, “A”, 5%, 7/01/2031 (Prerefunded 7/01/2025) | $ | 3,000,000 | $ | 3,491,880 | ||||
Sales & Excise Tax Revenue - 1.6% | ||||||||
Chicago, IL, Transit Authority Sales Tax Receipts Rev., AGM, 5%, 12/01/2046 | $ | 2,095,000 | $ | 2,285,415 | ||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6%, 1/15/2041 | 1,320,000 | 1,418,802 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “A”, 5.5%, 8/01/2028 (Prerefunded 8/01/2019) | 40,000 | 41,986 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, AMBAC, 0%, 8/01/2054 | 930,000 | 119,765 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2042 | 590,000 | 137,104 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2045 | 160,000 | 31,589 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2046 | 3,250,000 | 608,595 | ||||||
$ | 4,643,256 | |||||||
Secondary Schools - 0.7% | ||||||||
Alexandria, VA, Industrial Development Authority, Educational Facilities Rev. (Episcopal High School), “A”, 5%, 1/01/2040 (Prerefunded 1/01/2020) | $ | 1,900,000 | $ | 2,006,590 | ||||
State & Local Agencies - 14.1% | ||||||||
Colorado State University Board of Governors, System Enterprise Refunding Rev., “E”, 4%, 3/01/2043 | $ | 1,555,000 | $ | 1,618,273 | ||||
Delaware Valley, PA, Regional Finance Authority, “C”, FLR, 2.094% (LIBOR-3mo. + 0.75%), 6/01/2037 | 1,955,000 | 1,733,127 | ||||||
Fairfax County, VA, Economic Development Authority Facilities Rev. (County Facilities Projects), “A”, 5%, 10/01/2033 | 500,000 | 568,720 | ||||||
Fairfax County, VA, Economic Development Authority Facilities Rev. (County Facilities Projects), “A”, 5%, 10/01/2034 | 1,000,000 | 1,136,810 | ||||||
Fairfax County, VA, Economic Development Authority Metrorail Parking System Project Rev. , 5%, 4/01/2035 | 1,250,000 | 1,449,000 | ||||||
Fairfax County, VA, Economic Development Authority Metrorail Parking System Project Rev. , 5%, 4/01/2036 | 1,000,000 | 1,156,640 |
64
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Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
State & Local Agencies - continued | ||||||||
Fairfax County, VA, Economic Development Authority Metrorail Parking System Project Rev. , 5%, 4/01/2037 | $ | 750,000 | $ | 865,560 | ||||
Fairfax County, VA, Economic Development Authority Transportation Contract Rev. (Route 28 Projects), “B”, 2.875%, 4/01/2034 | 6,170,000 | 5,665,788 | ||||||
Manassas Park, VA, Economic Development Authority Lease Rev., “A”, 6%, 7/15/2035 (Prerefunded 7/15/2020) | 1,000,000 | 1,092,330 | ||||||
New River Valley, VA, Regional Jail Authority Rev., 5%, 10/01/2034 | 2,770,000 | 3,191,677 | ||||||
New River Valley, VA, Regional Jail Authority Rev., 5%, 10/01/2036 | 3,205,000 | 3,674,757 | ||||||
Powhatan County, VA, 5%, 1/15/2032 | 2,500,000 | 2,632,925 | ||||||
Virginia College Building Authority, Educational Facilities Rev., 5%, 2/01/2023 | 2,140,000 | 2,417,151 | ||||||
Virginia College Building Authority, Educational Facilities Rev. (21st Century College & Equipment), “A”, 5%, 2/01/2029 (Prerefunded 2/01/2019) | 1,500,000 | 1,542,240 | ||||||
Virginia College Building Authority, Educational Facilities Rev. (Public Higher Education Financing), “A”, 5%, 9/01/2027 | 3,000,000 | 3,301,530 | ||||||
Virginia College Building Authority, Educational Facilities Rev. (Public Higher Education Financing), “B”, 5%, 9/01/2020 | 3,000,000 | 3,224,730 | ||||||
Virginia Public Building Authority, Public Facilities Rev., “B”, 5%, 8/01/2029 (Prerefunded 8/01/2019) | 950,000 | 991,857 | ||||||
Virginia Public Building Authority, Public Facilities Rev., “B-3”, 4%, 8/01/2021 | 1,000,000 | 1,066,050 | ||||||
Virginia Public School Authority (1997 Resolution), “A”, 5%, 8/01/2019 | 1,175,000 | 1,226,771 | ||||||
Virginia Public School Authority (1997 Resolution), “A”, 5%, 8/01/2030 (Prerefunded 8/01/2020) | 1,000,000 | 1,074,740 | ||||||
Virginia Resource Authority Infrastructure Rev. (Virginia Pooled Financing Program), “A”, 5%, 8/01/2029 (Prerefunded 8/01/2019) | 100,000 | 104,272 | ||||||
Western Virginia, VA, Regional Jail Authority Rev., 5%, 12/01/2034 | 1,750,000 | 2,003,662 | ||||||
$ | 41,738,610 | |||||||
Tax - Other - 1.6% | ||||||||
Commonwealth of Puerto, Rico Infrastructure Financing Authority Rev., “C”, AMBAC, 5.5%, 7/01/2025 | $ | 80,000 | $ | 82,646 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/2024 (Prerefunded 12/01/2019) | 365,000 | 387,239 | ||||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/2029 (Prerefunded 12/01/2019) | 120,000 | 127,801 | ||||||
Puerto Rico Convention Center District Authority, Hotel Occupancy Tax Rev., “A”, AMBAC, 5%, 7/01/2031 | 365,000 | 353,302 |
Issuer | Shares/Par | Value ($) | ||||||
Tax - Other - continued | ||||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2024 | $ | 700,000 | $ | 723,065 | ||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2026 | 2,030,000 | 2,094,980 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2027 | 990,000 | 1,019,581 | ||||||
$ | 4,788,614 | |||||||
Tax Assessment - 0.4% | ||||||||
Embrey Mill Community Development Authority, VA, Special Assessment Rev., 7.25%, 3/01/2043 | $ | 750,000 | $ | 815,497 | ||||
Prince William County, VA, Cherry Hill Community Development Authority Rev. (Potomac Shores Project), 5.15%, 3/01/2035 | 500,000 | 513,720 | ||||||
$ | 1,329,217 | |||||||
Tobacco - 1.7% | ||||||||
Buckeye, OH, Tobacco Settlement Financing Authority Rev., “A-2”, 5.75%, 6/01/2034 | $ | 275,000 | $ | 269,349 | ||||
Buckeye, OH, Tobacco Settlement Financing Authority Rev., “A-2”, 6%, 6/01/2042 | 1,110,000 | 1,098,900 | ||||||
Buckeye, OH, Tobacco Settlement Financing Authority Rev., “A-2”, 6.5%, 6/01/2047 | 1,230,000 | 1,237,688 | ||||||
Illinois Railsplitter Tobacco Settlement Authority Rev., 6%, 6/01/2028 (Prerefunded 6/01/2021) | 1,575,000 | 1,771,654 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.5%, 6/01/2023 | 665,000 | 667,540 | ||||||
$ | 5,045,131 | |||||||
Toll Roads - 3.6% | ||||||||
Chesapeake Bay Bridge & Tunnel District First Tier General Resolution Rev. , 5%, 7/01/2051 | $ | 3,000,000 | $ | 3,317,430 | ||||
Metropolitan Washington, DC, Airports Authority Rev. Senior Lien (Dulles Toll Road), 5%, 10/01/2053 | 2,000,000 | 2,129,340 | ||||||
Virginia Small Business Financing Authority Rev. (95 Express Lanes LLC), 5%, 7/01/2034 | 2,500,000 | 2,681,225 | ||||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 6%, 1/01/2037 | 465,000 | 520,182 | ||||||
Virginia Small Business Financing Authority Rev. (Elizabeth River Crossings Opco LLC Project), 5.5%, 1/01/2042 | 905,000 | 988,830 | ||||||
Virginia Small Business Financing Authority, Senior Lien Private Activity Rev. (Transform 66 P3 Project), 5%, 12/31/2049 | 1,000,000 | 1,085,420 | ||||||
$ | 10,722,427 | |||||||
Transportation - Special Tax - 8.8% | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “J”, NATL, 5%, 7/01/2029 | $ | 50,000 | $ | 48,285 |
65
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Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Transportation - Special Tax - continued | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “L”, AMBAC, 5.25%, 7/01/2038 | $ | 1,840,000 | $ | 1,784,101 | ||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “L”, ASSD GTY, 5.25%, 7/01/2041 | 1,525,000 | 1,632,436 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “L”, NATL, 5.25%, 7/01/2035 | 1,995,000 | 1,897,085 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, AGM, 5.5%, 7/01/2029 | 505,000 | 550,071 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, AMBAC, 5.5%, 7/01/2029 | 1,695,000 | 1,734,968 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, NATL, 5.25%, 7/01/2032 | 635,000 | 614,115 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, NATL, 5.25%, 7/01/2033 | 570,000 | 548,654 | ||||||
Commonwealth of Virginia, Transportation Board Rev., Capital Projects, 4%, 5/15/2042 | 3,760,000 | 3,947,511 | ||||||
Commonwealth of Virginia, Transportation Board Rev., Capital Projects, “A”, 4%, 5/15/2035 | 2,750,000 | 2,926,110 | ||||||
Virginia Port Authority Rev., 5%, 7/01/2030 | 1,000,000 | 1,139,090 | ||||||
Virginia Port Authority Rev., 5%, 7/01/2031 | 500,000 | 569,195 | ||||||
Virginia Port Authority, Port Fund Rev., 5%, 7/01/2032 | 1,200,000 | 1,279,680 | ||||||
Washington Metropolitan Area Transit Authority Gross Rev., “A”, 5.125%, 7/01/2032 (Prerefunded 7/01/2019) | 1,365,000 | 1,423,668 | ||||||
Washington Metropolitan Area Transit Authority Gross Rev., “B”, 5%, 7/01/2042 | 3,860,000 | 4,445,408 | ||||||
Washington, DC, Metropolitan Area Transit Authority Gross Rev., “A”, 5.25%, 7/01/2029 (Prerefunded 7/01/2019) | 1,485,000 | 1,551,112 | ||||||
$ | 26,091,489 | |||||||
Universities - Colleges - 9.7% | ||||||||
Amherst, VA, Industrial Development Authority Rev. (Educational Facilities Sweet Briar), 5%, 9/01/2026 | $ | 1,770,000 | $ | 1,680,084 | ||||
Connecticut Health & Educational Facilities Authority Connecticut Rev. (Connecticut State University System Issue, Series P-1), 2.625%, 11/01/2032 | 1,765,000 | 1,520,777 | ||||||
Massachusetts Development Finance Agency Rev. (Suffolk University), 5%, 7/01/2030 | 615,000 | 644,754 | ||||||
Pennsylvania Higher Educational Facilities Authority Rev., AGM, 3%, 6/15/2045 | 1,380,000 | 1,212,482 | ||||||
Pennsylvania Higher Educational Facilities Authority Rev., BAM, 3%, 6/15/2045 | 1,450,000 | 1,273,984 |
Issuer | Shares/Par | Value ($) | ||||||
Universities - Colleges - continued | ||||||||
Prince William County, VA, Industrial Development Authority Rev. (George Mason University Foundation Prince William Life Sciences Lab), 5.5%, 9/01/2034 (Prerefunded 9/01/2021) | $ | 1,000,000 | $ | 1,115,530 | ||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Educational Facilities Rev. (University Plaza Project), NATL, 5%, 7/01/2033 | 370,000 | 346,757 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.375%, 4/01/2042 | 230,000 | 197,800 | ||||||
Red River, TX, Education Finance Corp., Higher Education Rev. (Houston Baptist University Project), 5.5%, 10/01/2046 | 595,000 | 653,798 | ||||||
University of Virginia (University Rev.), 5%, 9/01/2025 | 3,760,000 | 4,140,549 | ||||||
University of Virginia, General Rev. Pledge Refunding, “A”, 5%, 6/01/2043 | 685,000 | 759,706 | ||||||
University of Virginia, General Rev. Pledge Refunding, “B”, 5%, 4/01/2046 | 2,500,000 | 2,895,875 | ||||||
Virginia College Building Authority, Educational Facilities Rev. (Marymount University Project), “A”, 5%, 7/01/2035 | 1,000,000 | 1,062,290 | ||||||
Virginia College Building Authority, Educational Facilities Rev. (Marymount University), “B”, 5.25%, 7/01/2035 | 1,000,000 | 1,077,880 | ||||||
Virginia College Building Authority, Educational Facilities Rev. (Richmond University), “A”, 5%, 3/01/2021 | 2,115,000 | 2,301,670 | ||||||
Virginia College Building Authority, Educational Facilities Rev. (Roanoke College), 4.5%, 4/01/2037 | 2,180,000 | 2,183,270 | ||||||
Virginia College Building Authority, Educational Facilities Rev. (Washington & Lee University), NATL, 5.25%, 1/01/2031 | 1,000,000 | 1,201,840 | ||||||
Virginia College Building Authority, Educational Facilities Rev. (Washington & Lee University), “A”, 5%, 1/01/2040 | 1,000,000 | 1,124,500 | ||||||
Virginia Small Business Financing Authority Rev. (Hampton University), 5.25%, 10/01/2029 | 2,500,000 | 2,847,075 | ||||||
Virginia Small Business Financing Authority, Educational Facilities Rev. (Roanoke College), 5.5%, 4/01/2033 | 500,000 | 523,805 | ||||||
$ | 28,764,426 | |||||||
Utilities - Municipal Owned - 3.7% | ||||||||
Guam Power Authority Rev., “A”, 5.5%, 10/01/2030 (Prerefunded 10/01/2020) | $ | 785,000 | $ | 854,732 | ||||
Guam Power Authority Rev., “A”, 5.5%, 10/01/2040 (Prerefunded 10/01/2020) | 1,250,000 | 1,361,038 | ||||||
Long Island, NY, Power Authority, Electric Systems Rev., “A”, 6%, 5/01/2033 (Prerefunded 5/01/2019) | 470,000 | 491,794 |
66
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Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Utilities - Municipal Owned - continued | ||||||||
Puerto Rico Electric Power Authority Rev., “DDD”, AGM, 3.625%, 7/01/2023 | $ | 60,000 | $ | 59,104 | ||||
Puerto Rico Electric Power Authority Rev., “DDD”, AGM, 3.65%, 7/01/2024 | 260,000 | 254,296 | ||||||
Puerto Rico Electric Power Authority Rev., “MM”, NATL, 5%, 7/01/2020 | 5,000 | 5,021 | ||||||
Puerto Rico Electric Power Authority Rev., “PP”, NATL, 5%, 7/01/2024 | 25,000 | 24,827 | ||||||
Puerto Rico Electric Power Authority Rev., “SS”, ASSD GTY, 4.375%, 7/01/2030 | 30,000 | 29,520 | ||||||
Puerto Rico Electric Power Authority Rev., “UU”, ASSD GTY, 4.25%, 7/01/2027 | 185,000 | 184,850 | ||||||
Puerto Rico Electric Power Authority Rev., “UU”, NATL, 4.5%, 7/01/2018 | 20,000 | 20,002 | ||||||
Puerto Rico Electric Power Authority Rev., “VV”, NATL, 5.25%, 7/01/2030 | 335,000 | 328,454 | ||||||
Puerto Rico Electric Power Authority Rev., “VV”, NATL, 5.25%, 7/01/2032 | 55,000 | 53,191 | ||||||
Richmond, VA, Public Utility Rev., “A”, 5%, 1/15/2027 | 2,555,000 | 2,873,097 | ||||||
Richmond, VA, Public Utility Rev., “A”, 5%, 1/15/2035 | 2,000,000 | 2,302,700 | ||||||
Richmond, VA, Public Utility Rev., “A”, 5%, 1/15/2038 | 2,000,000 | 2,214,520 | ||||||
$ | 11,057,146 | |||||||
Utilities - Other - 1.2% | ||||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2019 | $ | 945,000 | $ | 987,780 | ||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2021 | 555,000 | 609,751 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2022 | 290,000 | 322,979 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2024 | 215,000 | 245,169 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2026 | 1,140,000 | 1,325,717 | ||||||
$ | 3,491,396 | |||||||
Water & Sewer Utility Revenue - 13.7% | ||||||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, ASSD GTY, 5%, 7/01/2028 | $ | 105,000 | $ | 105,162 | ||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, ASSD GTY, 5.125%, 7/01/2047 | 265,000 | 265,591 | ||||||
Fairfax County, VA, Water Authority Rev., 5%, 4/01/2028 | 1,000,000 | 1,111,770 | ||||||
Fairfax County, VA, Water Authority Rev., 5%, 4/01/2041 | 3,000,000 | 3,493,050 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5.25%, 7/01/2020 | 60,000 | 63,469 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5.25%, 7/01/2021 | 175,000 | 188,654 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 7/01/2036 | 295,000 | 318,895 |
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - continued | ||||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 7/01/2037 | $ | 375,000 | $ | 404,588 | ||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 7/01/2040 | 1,045,000 | 1,122,414 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5.625%, 7/01/2040 (Prerefunded 7/01/2020) | 620,000 | 672,347 | ||||||
Hampton Roads, VA, Sanitation District Wastewater Rev., “A”, 5%, 10/01/2035 | 660,000 | 773,117 | ||||||
Hampton Roads, VA, Sanitation District Wastewater Rev., “A”, 4%, 10/01/2037 | 1,350,000 | 1,425,357 | ||||||
Hampton Roads, VA, Sanitation District Wastewater Rev., “A”, 4%, 10/01/2038 | 1,265,000 | 1,333,500 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Sewage Disposal System Rev. Refunding Second Lien Local Project), “C-7”, NATL, 5%, 7/01/2032 | 80,000 | 88,231 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Second Lien Local Project), “D-6”, NATL, 5%, 7/01/2036 | 100,000 | 109,340 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Senior Lien Local Project), “D-1”, AGM, 5%, 7/01/2035 | 50,000 | 55,504 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Senior Lien Local Project), “D-1”, AGM, 5%, 7/01/2037 | 110,000 | 121,910 | ||||||
Norfolk, VA, Water Rev., 4.75%, 11/01/2038 (Prerefunded 11/01/2018) | 1,000,000 | 1,019,080 | ||||||
Norfolk, VA, Water Rev. , 5%, 11/01/2028 (Prerefunded 5/01/2022) | 985,000 | 1,097,694 | ||||||
Norfolk, VA, Water Rev. , 5%, 11/01/2028 | 15,000 | 16,629 | ||||||
Virginia Beach, VA, Water & Sewer System Rev., 5%, 10/01/2022 | 1,310,000 | 1,478,125 | ||||||
Virginia Resources Authority, Clean Water Rev., 5%, 10/01/2031 (Prerefunded 10/01/2019) | 1,000,000 | 1,049,250 | ||||||
Virginia Resources Authority, Infrastructure Rev., 5.25%, 11/01/2033 | 985,000 | 1,005,980 | ||||||
Virginia Resources Authority, Infrastructure Rev. (St. Moral, VA), 5%, 11/01/2040 (Prerefunded 11/01/2020) | 1,240,000 | 1,336,894 | ||||||
Virginia Resources Authority, Infrastructure Rev. (St. Moral, VA), 5%, 11/01/2040 | 160,000 | 171,790 | ||||||
Virginia Resources Authority, Infrastructure Rev., Pooled Financing Program, 5%, 11/01/2025 (Prerefunded 11/01/2021) | 260,000 | 286,798 | ||||||
Virginia Resources Authority, Infrastructure Rev., Pooled Financing Program, 5.25%, 11/01/2033 (Prerefunded 11/01/2018) | 175,000 | 178,738 |
67
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Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - continued | ||||||||
Virginia Resources Authority, Infrastructure Rev., Pooled Financing Program, 5.25%, 11/01/2033 (Prerefunded 11/01/2018) | $ | 1,840,000 | $ | 1,879,302 | ||||
Virginia Resources Authority, Infrastructure Rev., Pooled Financing Program, 5%, 11/01/2038 (Prerefunded 11/01/2018) | 2,600,000 | 2,651,818 | ||||||
Virginia Resources Authority, Infrastructure Rev., Pooled Financing Program, “B”, 5%, 11/01/2025 (Prerefunded 11/01/2021) (u) | 505,000 | 558,894 | ||||||
Virginia Resources Authority, Infrastructure Rev., Pooled Financing Program, “B”, 5%, 11/01/2025 (u) | 740,000 | 818,433 | ||||||
Virginia Resources Authority, Infrastructure Rev., Pooled Financing Program, “B”, 5%, 11/01/2027 (Prerefunded 11/01/2021) (u) | 3,645,000 | 4,033,994 | ||||||
Virginia Resources Authority, Infrastructure Rev., Pooled Financing Program, “B”, 5%, 11/01/2027 (u) | 2,110,000 | 2,332,099 | ||||||
Virginia Resources Authority, Infrastructure Rev., Pooled Financing Program, “B”, 5%, 11/01/2028 (Prerefunded 11/01/2021) (u) | 1,400,000 | 1,544,298 | ||||||
Virginia Resources Authority, Infrastructure Rev., Pooled Financing Program, “B”, 5%, 11/01/2028 (u) | 1,600,000 | 1,767,824 | ||||||
Virginia Resources Authority, Infrastructure Rev., Unrefunded Balance, 5%, 11/01/2025 | 1,335,000 | 1,476,497 |
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - continued | ||||||||
Virginia Resources Authority, Water & Sewer Systems Rev. (Turkahoe Creek Project), Capital Appreciation, 0%, 11/01/2033 | $ | 2,245,000 | $ | 1,273,903 | ||||
Virginia Resources Authority, Water & Sewer Systems Rev. (Turkahoe Creek Project), Capital Appreciation, 0%, 11/01/2034 | 2,250,000 | 1,216,192 | ||||||
Virginia Resources Authority, Water & Sewer Systems Rev. (Turkahoe Creek Project), Capital Appreciation, 0%, 11/01/2035 | 1,950,000 | 1,003,119 | ||||||
Virginia Resources Authority, Water & Sewer Systems Rev. (Turkahoe Creek Project), Capital Appreciation, 0%, 11/01/2036 | 1,250,000 | 611,687 | ||||||
$ | 40,461,937 | |||||||
Total Municipal Bonds (Identified Cost, $290,348,290) | $ | 294,662,447 | ||||||
Investment Companies (h) - 0.7% | ||||||||
Money Market Funds - 0.7% | ||||||||
MFS Institutional Money Market Portfolio, 1.71% (v) (Identified Cost, $2,016,202) | 2,016,605 | $ | 2,016,404 | |||||
Other Assets, Less Liabilities - (0.1)% | (330,120) | |||||||
Net Assets - 100.0% | $ | 296,348,731 |
See Portfolio Footnotes and Notes to Financial Statements
68
Table of Contents
PORTFOLIO OF INVESTMENTS
3/31/18
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 - 96.7% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Airport Revenue - 1.7% | ||||||||
Dallas and Fort Worth, TX, International Airport Rev., “B”, 5%, 11/01/2044 | $ | 155,000 | $ | 169,553 | ||||
Dallas and Fort Worth, TX, International Airport Rev., “C”, 5%, 11/01/2045 | 110,000 | 119,158 | ||||||
New York, NY, Transportation Development Corp. Special Facilities Rev. (LaGuardia Airport Terminal B Redevelopment Project), “A”, AGM, 4%, 7/01/2037 | 745,000 | 767,812 | ||||||
San Francisco, CA, City & County Airports Commission, International Airport Rev., “B”, 5%, 5/01/2046 | 470,000 | 524,473 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, 5%, 12/01/2044 | 60,000 | 66,052 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, BAM, 5%, 12/01/2039 | 70,000 | 77,281 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/2039 | 55,000 | 59,930 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/2044 | 85,000 | 92,355 | ||||||
$ | 1,876,614 | |||||||
General Obligations - General Purpose - 4.7% | ||||||||
Commonwealth of Massachusetts, General Obligation Consolidated Loan, “G”, 3%, 9/01/2046 | $ | 860,000 | $ | 754,960 | ||||
Commonwealth of Puerto Rico, Public Improvement Refunding, “A-4”, AGM, 5%, 7/01/2031 | 95,000 | 98,182 | ||||||
Guam Government, “A”, 6.75%, 11/15/2029 (Prerefunded 11/15/2019) | 35,000 | 37,730 | ||||||
Guam Government, “A”, 7%, 11/15/2039 (Prerefunded 11/15/2019) | 45,000 | 48,688 | ||||||
State of West Virginia, 4%, 6/01/2022 | 2,000,000 | 2,090,220 | ||||||
State of West Virginia, 4%, 6/01/2023 | 2,000,000 | 2,087,180 | ||||||
$ | 5,116,960 | |||||||
General Obligations - Schools - 10.9% | ||||||||
Dublin, CA, Unified School District (Election of 2016), “B”, 4%, 8/01/2043 | $ | 600,000 | $ | 631,494 | ||||
Hancock County, WV, Board of Education, 4.5%, 5/01/2032 | 1,405,000 | 1,481,741 | ||||||
Monongalia County, WV, Board of Education, 5%, 5/01/2029 | 1,000,000 | 1,100,000 | ||||||
Monongalia County, WV, Board of Education, 5%, 5/01/2031 | 2,000,000 | 2,190,220 | ||||||
Putnam County, WV, Board of Education, 4%, 5/01/2020 | 2,500,000 | 2,610,075 | ||||||
Putnam County, WV, Board of Education, 4%, 5/01/2025 | 1,000,000 | 1,039,870 |
Issuer | Shares/Par | Value ($) | ||||||
General Obligations - Schools - continued | ||||||||
Wood County, WV, Board of Education Public School, 4%, 6/01/2027 | $ | 1,605,000 | $ | 1,774,665 | ||||
Wood County, WV, Board of Education Public School, 3%, 6/01/2028 | 1,000,000 | 1,003,160 | ||||||
$ | 11,831,225 | |||||||
Healthcare Revenue - Hospitals - 16.9% | ||||||||
California Health Facilities Financing Authority Rev. (Stanford Health System), “A”, 4%, 11/15/2040 | $ | 360,000 | $ | 373,388 | ||||
Escambia County, FL, Health Facilities Authority (Baptist Hospital, Inc.), “A”, 6%, 8/15/2036 | 725,000 | 781,891 | ||||||
Illinois Finance Authority Rev. (Provena Health), “A”, 6%, 5/01/2028 (Prerefunded 5/01/2020) | 450,000 | 488,466 | ||||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 7%, 8/15/2044 (Prerefunded 8/15/2019) | 420,000 | 449,459 | ||||||
Kentucky Economic Development Finance Authority Hospital Rev. (Owensboro Medical Health System, Inc.), “A”, 6.375%, 6/01/2040 (Prerefunded 6/01/2020) | 410,000 | 448,745 | ||||||
Kentucky Economic Development Finance Authority Hospital Rev. (Owensboro Medical Health System, Inc.), “A”, 6.5%, 3/01/2045 (Prerefunded 6/01/2020) | 290,000 | 317,846 | ||||||
Kentucky Economic Development Finance Authority, Hospital Rev. (Owensboro Medical Health System, Inc.), “A”, 5.75%, 6/01/2025 (Prerefunded 6/01/2020) | 340,000 | 367,652 | ||||||
Monongalia County, WV, Building Commission Hospital Rev. (Monongalia General Hospital), 6.5%, 7/01/2041 | 1,100,000 | 1,217,403 | ||||||
Monongalia County, WV, Building Commission Improvement Rev. (Monongalia Health System Obligated Group), 5%, 7/01/2029 | 1,000,000 | 1,122,390 | ||||||
Princeton, WV, Hospital Rev. (Princeton Community Hospital), “A”, 5%, 5/01/2027 | 750,000 | 795,900 | ||||||
West Virginia Hospital Finance Authority Hospital Rev. (Camden Clark Memorial Hospital), ASSD GTY, 5.875%, 2/15/2034 (Prerefunded 2/15/2019) | 1,000,000 | 1,036,100 | ||||||
West Virginia Hospital Finance Authority Hospital Rev. (Charleston Area Medical Center), “A”, 5%, 9/01/2028 | 1,000,000 | 1,097,480 | ||||||
West Virginia Hospital Finance Authority Hospital Rev. (Charleston Area Medical Center), “A”, ETM, 6.5%, 9/01/2023 | 1,765,000 | 1,980,083 | ||||||
West Virginia Hospital Finance Authority Hospital Rev. (Thomas Health System), 6.5%, 10/01/2038 | 500,000 | 504,685 |
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Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Healthcare Revenue - Hospitals - continued | ||||||||
West Virginia Hospital Finance Authority Hospital Rev. (Valley Health System Obligation Group), 5%, 1/01/2044 | $ | 1,000,000 | $ | 1,074,700 | ||||
West Virginia Hospital Finance Authority Hospital Rev. (Valley Health System Obligation Group), 5%, 1/01/2044 | 1,000,000 | 1,077,020 | ||||||
West Virginia Hospital Finance Authority Hospital Rev. (West Virginia United Health System Obligated Group), “A”, 4%, 6/01/2035 | 1,500,000 | 1,534,575 | ||||||
West Virginia Hospital Finance Authority Hospital Rev. (West Virginia United Health System Obligated Group), “A”, 5.5%, 6/01/2044 | 1,460,000 | 1,615,592 | ||||||
West Virginia Hospital Finance Authority Hospital Rev. (West Virginia United Health System Obligated Group), “E”, 5.625%, 6/01/2035 (Prerefunded 12/01/2018) | 1,000,000 | 1,026,140 | ||||||
West Virginia Hospital Finance Authority Improvement Rev. (West Virginia University Health System Obligated Group), “A”, 5%, 6/01/2042 | 1,000,000 | 1,097,740 | ||||||
$ | 18,407,255 | |||||||
Industrial Revenue - Other - 0.5% | ||||||||
New York Liberty Development Corp. Rev. (Goldman Sachs Headquarters), 5.25%, 10/01/2035 | $ | 420,000 | $ | 521,195 | ||||
Miscellaneous Revenue - Other - 11.4% | ||||||||
Florida Citizens Property Insurance Corp., “A-1”, 5%, 6/01/2020 | $ | 605,000 | $ | 644,779 | ||||
Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/2040 | 140,000 | 150,182 | ||||||
Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/2044 | 215,000 | 230,106 | ||||||
New York Liberty Development Corp., Liberty Rev. (3 World Trade Center Project), “1”, 5%, 11/15/2044 | 580,000 | 614,783 | ||||||
New York Liberty Development Corp., Liberty Rev. (7 World Trade Center Project), 5%, 9/15/2040 | 545,000 | 599,603 | ||||||
Texas Private Activity Surface Transportation Corp. Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 7%, 12/31/2038 | 155,000 | 182,277 | ||||||
Texas Private Activity Surface Transportation Corp. Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 6.75%, 6/30/2043 | 120,000 | 139,198 | ||||||
West Virginia Building Commission, Lease Rev. (WV Regional Jail), “A”, AMBAC, 5.375%, 7/01/2018 | 1,000,000 | 1,008,570 | ||||||
West Virginia Economic Development Authority, Lottery Rev., “A”, 5%, 6/15/2040 (Prerefunded 6/15/2020) | 2,475,000 | 2,648,349 |
Issuer | Shares/Par | Value ($) | ||||||
Miscellaneous Revenue - Other - continued | ||||||||
West Virginia School Building Authority, Excess Lottery Rev., 5%, 7/01/2026 (Prerefunded 7/01/2018) | $ | 750,000 | $ | 756,397 | ||||
West Virginia School Building Authority, Excess Lottery Rev., “B”, 5%, 7/01/2030 | 1,000,000 | 1,067,090 | ||||||
West Virginia School Building Authority, Lottery Capital Improvement Rev., “B”, 5%, 7/01/2032 | 1,940,000 | 2,236,762 | ||||||
West Virginia, Higher Education Policy Commission Rev. (Community & Technology- Capital Improvement), 5%, 7/01/2039 | 1,200,000 | 1,249,740 | ||||||
West Virginia, Higher Education Policy Commission Rev. (Community & Technology- Capital Improvement), “A”, 5%, 7/01/2036 | 750,000 | 857,257 | ||||||
$ | 12,385,093 | |||||||
Sales & Excise Tax Revenue - 3.8% | ||||||||
Chicago, IL, Transit Authority Sales Tax Receipts Rev., AGM, 5%, 12/01/2046 | $ | 825,000 | $ | 899,984 | ||||
Guam Government Business Privilege Tax Rev., “A”, 5.25%, 1/01/2036 | 335,000 | 348,792 | ||||||
Guam Government Business Privilege Tax Rev., “A”, 5.125%, 1/01/2042 | 790,000 | 813,977 | ||||||
Massachusetts Bay Transportation Authority, Sales Tax Rev., “A”, 5%, 7/01/2031 | 1,000,000 | 1,227,070 | ||||||
Monongalia County, WV, Special District Excise Tax Rev., Refunding & Improvement Bonds (University Town Centre Economic Opportunity Development District), “A”, 5.5%, 6/01/2037 | 500,000 | 516,675 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, AMBAC, 0%, 8/01/2054 | 385,000 | 49,580 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2042 | 245,000 | 56,933 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2045 | 65,000 | 12,833 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2046 | 1,345,000 | 251,865 | ||||||
$ | 4,177,709 | |||||||
Single Family Housing - State - 0.3% | ||||||||
West Virginia Housing Development Fund, “A”, 3.8%, 11/01/2024 | $ | 290,000 | $ | 300,385 | ||||
State & Local Agencies - 8.3% | ||||||||
California Public Works Board Lease Rev. (Department of Corrections), “E”, AGM, 3%, 10/01/2036 | $ | 835,000 | $ | 791,630 | ||||
Colorado State University Board of Governors, System Enterprise Refunding Rev., “E”, 4%, 3/01/2043 | 575,000 | 598,397 | ||||||
FYI Properties Lease Rev. (Washington State Project), 5.5%, 6/01/2034 | 545,000 | 568,119 |
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Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
State & Local Agencies - continued | ||||||||
West Virginia Economic Development Authority, Auto Lease Rev., 5.2%, 5/01/2033 | $ | 1,000,000 | $ | 1,002,670 | ||||
West Virginia Economic Development Authority, Lease Rev. (Correctional Juvenile Public Safety Facilities), 5%, 6/01/2022 | 1,000,000 | 1,088,860 | ||||||
West Virginia Economic Development Authority, Lease Rev. (Correctional Juvenile Public Safety Facilities), “A”, 5%, 6/01/2029 | 2,000,000 | 2,200,520 | ||||||
West Virginia Economic Development Authority, Lease Rev. (State Office Building), “B”, NATL, 5.25%, 1/01/2025 | 645,000 | 646,742 | ||||||
West Virginia Economic Development Authority, Lease Rev. (State Office Building), “B”, NATL, 5.25%, 1/01/2030 | 1,355,000 | 1,358,658 | ||||||
West Virginia Hospital Finance Authority Hospital Rev. (Veterans Nursing Home), 5.5%, 3/01/2034 | 795,000 | 796,200 | ||||||
$ | 9,051,796 | |||||||
Tax - Other - 2.4% | ||||||||
Guam Government Ltd. Obligation Rev., “A”, 5.375%, 12/01/2024 (Prerefunded 12/01/2019) | $ | 160,000 | $ | 169,749 | ||||
Guam Government Ltd. Obligation Rev., “A”, 5.625%, 12/01/2029 (Prerefunded 12/01/2019) | 55,000 | 58,575 | ||||||
Puerto Rico Convention Center District Authority, Hotel Occupancy Tax Rev., “A”, AMBAC, 5%, 7/01/2031 | 945,000 | 914,713 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2027 | 430,000 | 442,848 | ||||||
Virgin Islands Public Finance Authority Rev. (Gross Receipts), AGM, 5%, 10/01/2032 | 1,000,000 | 1,052,700 | ||||||
$ | 2,638,585 | |||||||
Tax Assessment - 1.3% | ||||||||
Morgantown, WV, Tax Increment Rev., Parking Garage Project, “A”, 5%, 6/01/2033 | $ | 455,000 | $ | 451,151 | ||||
Ohio County, WV, Commission Tax Increment Rev. (Fort Henry Centre), 4%, 6/01/2034 | 1,000,000 | 1,013,360 | ||||||
$ | 1,464,511 | |||||||
Tobacco - 0.6% | ||||||||
Illinois Railsplitter Tobacco Settlement Authority Rev., 6%, 6/01/2028 (Prerefunded 6/01/2021) | $ | 620,000 | $ | 697,413 | ||||
Transportation - Special Tax - 2.8% | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “AA-1”, AGM, 4.95%, 7/01/2026 | $ | 575,000 | $ | 588,317 | ||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “L”, AMBAC, 5.25%, 7/01/2038 | 755,000 | 732,063 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “L”, ASSD GTY, 5.25%, 7/01/2041 | 220,000 | 235,499 |
Issuer | Shares/Par | Value ($) | ||||||
Transportation - Special Tax - continued | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “L”, NATL, 5.25%, 7/01/2035 | $ | 340,000 | $ | 323,313 | ||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, AMBAC, 5.5%, 7/01/2029 | 750,000 | 767,685 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, NATL, 5.25%, 7/01/2032 | 100,000 | 96,711 | ||||||
New Jersey Transportation Trust Fund Authority, Federal Highway Reimbursement Rev., “A-1”, 5%, 6/15/2027 | 220,000 | 244,330 | ||||||
$ | 2,987,918 | |||||||
Universities - Colleges - 16.1% | ||||||||
Concord University, WV, Board of Governors Rev., AGM, 5%, 6/01/2023 | $ | 420,000 | $ | 460,715 | ||||
Concord University, WV, Board of Governors Rev., AGM, 5%, 6/01/2024 | 440,000 | 481,558 | ||||||
Fairmont State University, WV, Board of Governors Rev., “A”, 5%, 6/01/2026 | 840,000 | 952,720 | ||||||
Fairmont State University, WV, Board of Governors Rev., “A”, 5%, 6/01/2032 | 4,035,000 | 4,337,100 | ||||||
Marshall University, WV, University Rev., 5%, 5/01/2030 | 2,000,000 | 2,110,580 | ||||||
Marshall University, WV, University Rev., 5%, 5/01/2041 | 1,000,000 | 1,074,830 | ||||||
New York Dormitory Authority Rev. (New York University), “1”, AMBAC, 5.5%, 7/01/2040 | 555,000 | 724,608 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Educational Facilities Rev. (University Plaza), “A”, NATL, 5%, 7/01/2021 | 1,270,000 | 1,269,962 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.375%, 12/01/2021 | 15,000 | 14,944 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (International American University of Puerto Rico Project), 5%, 10/01/2031 | 110,000 | 110,102 | ||||||
West Virginia Board of Governors Refunding & Improvement, “A”, 5%, 10/01/2027 | 525,000 | 582,356 | ||||||
West Virginia University, University Systems Rev., “A”, NATL, 5.5%, 4/01/2020 | 1,700,000 | 1,821,992 | ||||||
West Virginia University, University Systems Rev., “A”, NATL, 5.25%, 4/01/2028 | 3,035,000 | 3,565,761 | ||||||
$ | 17,507,228 | |||||||
Utilities - Investor Owned - 0.5% | ||||||||
Michigan Strategic Fund Ltd. Obligation Rev. (Detroit Edison Co.), 5.625%, 7/01/2020 | $ | 470,000 | $ | 505,584 |
71
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Portfolio of Investments – continued
Municipal Bonds - continued | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Utilities - Municipal Owned - 0.9% | ||||||||
Guam Power Authority Rev., “A”, 5.5%, 10/01/2030 (Prerefunded 10/01/2020) | $ | 325,000 | $ | 353,870 | ||||
Guam Power Authority Rev., “A”, AGM, 5%, 10/01/2033 | 435,000 | 475,520 | ||||||
Puerto Rico Electric Power Authority Rev., “VV”, NATL, 5.25%, 7/01/2030 | 135,000 | 132,362 | ||||||
$ | 961,752 | |||||||
Utilities - Other - 1.5% | ||||||||
California M-S-R Energy Authority Gas Rev., “A”, 6.5%, 11/01/2039 | $ | 615,000 | $ | 863,669 | ||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2021 | 245,000 | 269,169 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2022 | 125,000 | 139,215 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “C”, 5%, 2/01/2021 | 290,000 | 312,301 | ||||||
Texas Gas Acquisition & Supply Corp III., Gas Supply Rev., 5%, 12/15/2031 | 70,000 | 76,477 | ||||||
$ | 1,660,831 | |||||||
Water & Sewer Utility Revenue - 12.1% | ||||||||
Berkeley County, WV, Public Service Sewer District, “A”, BAM, 5%, 6/01/2036 | $ | 1,700,000 | $ | 1,920,796 | ||||
Berkeley County, WV, Public Service Sewer District, “C”, BAM, 4.5%, 10/01/2032 | 1,500,000 | 1,604,565 | ||||||
Fairmont, WV, Waterworks Rev., AMBAC, 5.25%, 7/01/2022 | 200,000 | 215,396 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 7/01/2036 | 40,000 | 42,933 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5.625%, 7/01/2040 (Prerefunded 7/01/2020) | 515,000 | 558,482 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 1/01/2046 | 180,000 | 191,293 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), “A”, 5%, 7/01/2029 | 20,000 | 21,736 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), “A”, 5%, 7/01/2035 | 20,000 | 21,180 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Sewage Disposal System Rev. Refunding Second Lien Local Project), “C-7”, NATL, 5%, 7/01/2032 | 35,000 | 38,601 |
Issuer | Shares/Par | Value ($) | ||||||
Water & Sewer Utility Revenue - continued | ||||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Second Lien Local Project), “D-6”, NATL, 5%, 7/01/2036 | $ | 40,000 | $ | 43,736 | ||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Senior Lien Local Project), “D-1”, AGM, 5%, 7/01/2035 | 20,000 | 22,201 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Senior Lien Local Project), “D-1”, AGM, 5%, 7/01/2037 | 50,000 | 55,414 | ||||||
Mississippi Development Bank Special Obligation (City of Jackson Water and Sewer System Rev. Bond Project), AGM, 6.875%, 12/01/2040 | 75,000 | 91,113 | ||||||
Morgantown, WV, Combined Utility System Rev., “A”, AGM, 5%, 12/01/2041 | 1,000,000 | 1,121,510 | ||||||
Ogden City, Utah, Sewer and Water Rev., 3%, 6/15/2041 | 620,000 | 571,008 | ||||||
West Virginia Water Development Authority Rev. (Loan Program II), “A-II”, 5%, 11/01/2033 | 1,475,000 | 1,675,113 | ||||||
West Virginia Water Development Authority Rev. (Loan Program IV), “A-IV”, 5%, 11/01/2038 | 500,000 | 572,395 | ||||||
Wheeling, WV, Combined Waterworks and Sewerage System Rev., 5%, 6/01/2038 | 3,000,000 | 3,271,290 | ||||||
Wheeling, WV, Combined Waterworks and Sewerage System Rev., 5%, 6/01/2043 | 1,000,000 | 1,087,450 | ||||||
$ | 13,126,212 | |||||||
Total Municipal Bonds (Identified Cost, $102,514,792) | $ | 105,218,266 | ||||||
Investment Companies (h) - 0.2% | ||||||||
Money Market Funds - 0.2% | ||||||||
MFS Institutional Money Market Portfolio, 1.71% (v) (Identified Cost, $158,202) | 158,218 | $ | 158,202 | |||||
Other Assets, Less Liabilities - 3.1% | 3,417,769 | |||||||
Net Assets - 100.0% | $ | 108,794,237 |
See Portfolio Footnotes and Notes to Financial Statements
72
Table of Contents
Portfolio of Investments – continued
Portfolio Footnotes:
(a) | Non-income producing security. |
(d) | In default. |
(h) | 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. At period end, the aggregate values of each fund’s investments in affiliated issuers and in unaffiliated issuers were as follows: |
Affiliated Issuers | Unaffiliated Issuers | |||||||
Mississippi Fund | $ | 179,635 | $ | 88,783,743 | ||||
New York Fund | 420,700 | 226,601,285 | ||||||
North Carolina Fund | 5,282,358 | 388,718,025 | ||||||
Pennsylvania Fund | 148,980 | 124,961,783 | ||||||
South Carolina Fund | 3,567,792 | 180,504,029 | ||||||
Tennessee Fund | 314,746 | 104,099,584 | ||||||
Virginia Fund | 2,016,404 | 294,662,447 | ||||||
West Virginia Fund | 158,202 | 105,218,266 |
(u) | Underlying security deposited into special purpose trust upon creation of self-deposited inverse floaters. |
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
The following abbreviations are used in this report and are defined:
AGM | Assured Guaranty Municipal | |
AMBAC | AMBAC Indemnity Corp. | |
ASSD GTY | Assured Guaranty Insurance Co. | |
BAM | Build America Mutual | |
COP | Certificate of Participation | |
ETM | Escrowed to Maturity | |
FGIC | Financial Guaranty Insurance Co. | |
FHA | Federal Housing Administration | |
FLR | Floating Rate. Interest rate resets periodically based on the parenthetically disclosed reference rate plus a spread (if any). The period-end rate reported may not be the current rate. | |
FNMA | Federal National Mortgage Assn. | |
GNMA | Government National Mortgage Assn. | |
LOC | Letter of Credit | |
NATL | National Public Finance Guarantee Corp. |
See Notes to Financial Statements
73
Table of Contents
Financial Statements
STATEMENTS OF ASSETS AND LIABILITIES
At 3/31/18
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 in unaffiliated issuers, at value (identified cost, $86,302,967, $220,857,726, $379,855,293, and $120,527,287, respectively) | $88,783,743 | $226,601,285 | $388,718,025 | $124,961,783 | ||||||||||||
Investments in affiliated issuers, at value (identified cost, $179,628, $420,694, $5,281,869, and $148,966, respectively) | 179,635 | 420,700 | 5,282,358 | 148,980 | ||||||||||||
Cash | — | — | 411,453 | 46,324 | ||||||||||||
Receivables for | ||||||||||||||||
Investments sold | 683,733 | 318,325 | 1,590,550 | 193,375 | ||||||||||||
Fund shares sold | 82,500 | 140,444 | 513,503 | 5,221 | ||||||||||||
Interest | 1,107,158 | 2,966,822 | 5,784,683 | 1,751,406 | ||||||||||||
Other assets | 526 | 978 | 1,506 | 671 | ||||||||||||
Total assets | $90,837,295 | $230,448,554 | $402,302,078 | $127,107,760 | ||||||||||||
Liabilities | ||||||||||||||||
Payable to custodian | $10,196 | $9,493 | $— | $— | ||||||||||||
Payables for | ||||||||||||||||
Distributions | 21,622 | 79,453 | 91,293 | 51,077 | ||||||||||||
Investments purchased | — | 821,082 | 4,231,505 | 2,269,380 | ||||||||||||
Fund shares reacquired | 73,521 | 133,857 | 423,487 | 100,329 | ||||||||||||
Payable to affiliates | ||||||||||||||||
Investment adviser | 4,630 | 11,539 | 19,903 | 6,324 | ||||||||||||
Shareholder servicing costs | 27,325 | 64,677 | 141,446 | 42,396 | ||||||||||||
Distribution and service fees | 355 | 5,531 | 10,471 | 1,335 | ||||||||||||
Payable for independent Trustees’ compensation | 1,464 | 1,874 | 3,884 | 1,455 | ||||||||||||
Accrued expenses and other liabilities | 64,707 | 78,131 | 85,930 | 71,694 | ||||||||||||
Total liabilities | $203,820 | $1,205,637 | $5,007,919 | $2,543,990 | ||||||||||||
Net assets | $90,633,475 | $229,242,917 | $397,294,159 | $124,563,770 | ||||||||||||
Net assets consist of | ||||||||||||||||
Paid-in capital | $90,469,612 | $226,651,332 | $396,699,570 | $123,385,991 | ||||||||||||
Unrealized appreciation (depreciation) | 2,480,783 | 5,743,565 | 8,863,221 | 4,434,510 | ||||||||||||
Accumulated net realized gain (loss) | (2,377,824 | ) | (3,143,018 | ) | (8,361,544 | ) | (3,266,453 | ) | ||||||||
Accumulated undistributed (distributions in excess of) net investment income | 60,904 | (8,962 | ) | 92,912 | 9,722 | |||||||||||
Net assets | $90,633,475 | $229,242,917 | $397,294,159 | $124,563,770 |
74
Table of Contents
Statements of Assets and Liabilities – continued
Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | |||||||||||||
Net assets | ||||||||||||||||
Class A | $82,525,964 | $143,688,915 | $283,544,813 | $99,318,593 | ||||||||||||
Class B | 1,007,351 | 3,980,158 | 2,288,333 | 3,461,528 | ||||||||||||
Class C | — | 22,931,611 | 53,116,717 | — | ||||||||||||
Class I | 6,540,216 | 57,348,953 | 45,146,619 | 20,578,853 | ||||||||||||
Class R6 | 559,944 | 1,293,280 | 13,197,677 | 1,204,796 | ||||||||||||
Total net assets | $90,633,475 | $229,242,917 | $397,294,159 | $124,563,770 | ||||||||||||
Shares of beneficial interest outstanding | ||||||||||||||||
Class A | 8,661,928 | 13,220,768 | 24,706,913 | 9,784,822 | ||||||||||||
Class B | 105,608 | 367,161 | 199,631 | 340,180 | ||||||||||||
Class C | — | 2,112,440 | 4,631,158 | — | ||||||||||||
Class I | 687,498 | 5,965,943 | 4,719,211 | 2,128,128 | ||||||||||||
Class R6 | 58,863 | 134,587 | 1,379,610 | 124,599 | ||||||||||||
Total shares of beneficial interest outstanding | 9,513,897 | 21,800,899 | 35,636,523 | 12,377,729 | ||||||||||||
Class A shares | ||||||||||||||||
Net asset value per share | ||||||||||||||||
(net assets / shares of beneficial interest outstanding) | $9.53 | $10.87 | $11.48 | $10.15 | ||||||||||||
Offering price per share (100 / 95.75 × net asset value per share) | $9.95 | $11.35 | $11.99 | $10.60 | ||||||||||||
Class B shares | ||||||||||||||||
Net asset value and offering price per share | ||||||||||||||||
(net assets / shares of beneficial interest outstanding) | $9.54 | $10.84 | $11.46 | $10.18 | ||||||||||||
Class C shares | ||||||||||||||||
Net asset value and offering price per share | ||||||||||||||||
(net assets / shares of beneficial interest outstanding) | $— | $10.86 | $11.47 | $— | ||||||||||||
Class I shares | ||||||||||||||||
Net asset value, offering price, and redemption price per share | ||||||||||||||||
(net assets / shares of beneficial interest outstanding) | $9.51 | $9.61 | $9.57 | $9.67 | ||||||||||||
Class R6 shares | ||||||||||||||||
Net asset value, offering price, and redemption price per share | ||||||||||||||||
(net assets / shares of beneficial interest outstanding) | $9.51 | $9.61 | $9.57 | $9.67 |
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. Net asset value per share is calculated using actual net assets and shares outstanding rather than amounts that have been rounded for presentation purposes.
See Notes to Financial Statements
75
Table of Contents
Statements of Assets and Liabilities – continued
At 3/31/18 | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | ||||||||||||
Assets | ||||||||||||||||
Investments in unaffiliated issuers, at value (identified cost, $177,150,659, $102,128,565, $290,348,290, and $102,514,792, respectively) | $180,504,029 | $104,099,584 | $294,662,447 | $105,218,266 | ||||||||||||
Investments in affiliated issuers, at value (identified cost, $3,567,457, $314,714, $2,016,202, and $158,202, respectively) | 3,567,792 | 314,746 | 2,016,404 | 158,202 | ||||||||||||
Cash | — | — | 437,606 | 1,875,406 | ||||||||||||
Receivables for | ||||||||||||||||
Investments sold | 282,625 | 174,638 | 446,250 | 196,101 | ||||||||||||
Fund shares sold | 103,220 | 13,218 | 305,435 | 25,347 | ||||||||||||
Interest | 2,484,590 | 1,472,901 | 4,208,550 | 1,539,071 | ||||||||||||
Receivable from investment adviser | 4,564 | 8,762 | 7,451 | 7,807 | ||||||||||||
Other assets | 882 | 630 | 1,292 | 630 | ||||||||||||
Total assets | $186,947,702 | $106,084,479 | $302,085,435 | $109,020,830 | ||||||||||||
Liabilities | ||||||||||||||||
Payable to custodian | $51,625 | $77,226 | $— | $— | ||||||||||||
Payables for | ||||||||||||||||
Distributions | 28,558 | 20,807 | 85,280 | 13,060 | ||||||||||||
Interest expense and fees | — | — | 37,980 | — | ||||||||||||
Fund shares reacquired | 192,877 | 246,713 | 396,964 | 97,651 | ||||||||||||
Payable to the holders of the floating rate certificates from trust assets | — | — | 5,008,745 | — | ||||||||||||
Payable to affiliates | ||||||||||||||||
Shareholder servicing costs | 62,585 | 42,302 | 115,984 | 47,450 | ||||||||||||
Distribution and service fees | 3,601 | 2,337 | 6,979 | 124 | ||||||||||||
Payable for independent Trustees’ compensation | 3,939 | 1,869 | 3,913 | 3,941 | ||||||||||||
Accrued expenses and other liabilities | 70,704 | 65,099 | 80,859 | 64,367 | ||||||||||||
Total liabilities | $413,889 | $456,353 | $5,736,704 | $226,593 | ||||||||||||
Net assets | $186,533,813 | $105,628,126 | $296,348,731 | $108,794,237 | ||||||||||||
Net assets consist of | ||||||||||||||||
Paid-in capital | $188,538,990 | $105,893,470 | $298,133,314 | $109,757,865 | ||||||||||||
Unrealized appreciation (depreciation) | 3,353,705 | 1,971,051 | 4,314,359 | 2,703,474 | ||||||||||||
Accumulated net realized gain (loss) | (5,342,327 | ) | (2,712,198 | ) | (6,006,402 | ) | (3,656,071 | ) | ||||||||
Accumulated undistributed (distributions in excess of) net investment income | (16,555 | ) | 475,803 | (92,540 | ) | (11,031 | ) | |||||||||
Net assets | $186,533,813 | $105,628,126 | $296,348,731 | $108,794,237 |
76
Table of Contents
Statements of Assets and Liabilities – continued
South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | |||||||||||||
Net assets | ||||||||||||||||
Class A | $159,257,081 | $84,131,135 | $221,291,102 | $101,013,330 | ||||||||||||
Class B | 2,718,008 | 1,229,656 | 913,819 | 613,435 | ||||||||||||
Class C | — | — | 24,115,933 | — | ||||||||||||
Class I | 21,953,885 | 17,243,153 | 43,832,268 | 7,037,674 | ||||||||||||
Class R6 | 2,604,839 | 3,024,182 | 6,195,609 | 129,798 | ||||||||||||
Total net assets | $186,533,813 | $105,628,126 | $296,348,731 | $108,794,237 | ||||||||||||
Shares of beneficial interest outstanding | ||||||||||||||||
Class A | 13,465,065 | 8,223,722 | 20,145,344 | 9,277,583 | ||||||||||||
Class B | 229,932 | 120,303 | 83,244 | 56,359 | ||||||||||||
Class C | — | — | 2,195,826 | — | ||||||||||||
Class I | 2,291,038 | 1,803,623 | 4,590,987 | 734,393 | ||||||||||||
Class R6 | 271,823 | 316,510 | 648,452 | 13,549 | ||||||||||||
Total shares of beneficial interest outstanding | 16,257,858 | 10,464,158 | 27,663,853 | 10,081,884 | ||||||||||||
Class A shares | ||||||||||||||||
Net asset value per share | ||||||||||||||||
(net assets / shares of beneficial interest outstanding) | $11.83 | $10.23 | $10.98 | $10.89 | ||||||||||||
Offering price per share (100 / 95.75 × net asset value per share) | $12.36 | $10.68 | $11.47 | $11.37 | ||||||||||||
Class B shares | ||||||||||||||||
Net asset value and offering price per share | ||||||||||||||||
(net assets / shares of beneficial interest outstanding) | $11.82 | $10.22 | $10.98 | $10.88 | ||||||||||||
Class C shares | ||||||||||||||||
Net asset value and offering price per share | ||||||||||||||||
(net assets / shares of beneficial interest outstanding) | $— | $— | $10.98 | $— | ||||||||||||
Class I shares | ||||||||||||||||
Net asset value, offering price, and redemption price per share | ||||||||||||||||
(net assets / shares of beneficial interest outstanding) | $9.58 | $9.56 | $9.55 | $9.58 | ||||||||||||
Class R6 shares | ||||||||||||||||
Net asset value, offering price, and redemption price per share | ||||||||||||||||
(net assets / shares of beneficial interest outstanding) | $9.58 | $9.55 | $9.55 | $9.58 |
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. Net asset value per share is calculated using actual net assets and shares outstanding rather than amounts that have been rounded for presentation purposes.
See Notes to Financial Statements
77
Table of Contents
Financial Statements
Year ended 3/31/18
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 (loss) | ||||||||||||||||
Interest | $3,667,623 | $9,829,855 | $16,012,755 | $5,882,212 | ||||||||||||
Dividends from affiliated issuers | 11,771 | 54,804 | 62,390 | 14,931 | ||||||||||||
Total investment income | $3,679,394 | $9,884,659 | $16,075,145 | $5,897,143 | ||||||||||||
Expenses | ||||||||||||||||
Management fee | $409,823 | $992,956 | $1,703,381 | $564,379 | ||||||||||||
Distribution and service fees | 222,668 | 632,958 | 1,272,872 | 292,548 | ||||||||||||
Shareholder servicing costs | 63,362 | 152,668 | 325,873 | 104,380 | ||||||||||||
Administrative services fee | 23,899 | 44,027 | 68,621 | 29,245 | ||||||||||||
Independent Trustees’ compensation | 3,166 | 9,266 | 9,982 | 4,907 | ||||||||||||
Custodian fee | 21,478 | 38,657 | 51,299 | 30,475 | ||||||||||||
Shareholder communications | 7,786 | 14,433 | 21,408 | 13,713 | ||||||||||||
Audit and tax fees | 53,943 | 53,976 | 54,019 | 53,952 | ||||||||||||
Legal fees | 15,991 | 16,639 | 16,344 | 15,524 | ||||||||||||
Registration fees | 61,404 | 77,030 | 81,678 | 60,864 | ||||||||||||
Miscellaneous | 17,951 | 22,077 | 25,234 | 19,990 | ||||||||||||
Total expenses | $901,471 | $2,054,687 | $3,630,711 | $1,189,977 | ||||||||||||
Fees paid indirectly | (94 | ) | (49 | ) | (77 | ) | (54 | ) | ||||||||
Reduction of expenses by investment adviser and distributor | (141,162 | ) | (26,678 | ) | (53,213 | ) | (167,181 | ) | ||||||||
Net expenses | $760,215 | $2,027,960 | $3,577,421 | $1,022,742 | ||||||||||||
Net investment income (loss) | $2,919,179 | $7,856,699 | $12,497,724 | $4,874,401 | ||||||||||||
Realized and unrealized gain (loss) | ||||||||||||||||
Realized gain (loss) (identified cost basis) | ||||||||||||||||
Unaffiliated issuers | $96,986 | $1,510,285 | $544,114 | $291,862 | ||||||||||||
Affiliated issuers | (340 | ) | (968 | ) | (1,049 | ) | (513 | ) | ||||||||
Futures contracts | — | 111,794 | — | 63,882 | ||||||||||||
Net realized gain (loss) | $96,646 | $1,621,111 | $543,065 | $355,231 | ||||||||||||
Change in unrealized appreciation (depreciation) | ||||||||||||||||
Unaffiliated issuers | $(1,162,724 | ) | $(3,697,771 | ) | $(5,410,354 | ) | $(1,189,081 | ) | ||||||||
Affiliated issuers | 7 | 69 | 489 | 36 | ||||||||||||
Net unrealized gain (loss) | $(1,162,717 | ) | $(3,697,702 | ) | $(5,409,865 | ) | $(1,189,045 | ) | ||||||||
Net realized and unrealized gain (loss) | $(1,066,071 | ) | $(2,076,591 | ) | $(4,866,800 | ) | $(833,814 | ) | ||||||||
Change in net assets from operations | $1,853,108 | $5,780,108 | $7,630,924 | $4,040,587 |
See Notes to Financial Statements
78
Table of Contents
Statements of Operations – continued
Year ended 3/31/18 | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | ||||||||||||
Net investment income (loss) | ||||||||||||||||
Interest | $7,556,704 | $4,614,577 | $12,580,356 | $4,773,475 | ||||||||||||
Dividends from affiliated issuers | 28,159 | 15,554 | 41,105 | 8,823 | ||||||||||||
Total investment income | $7,584,863 | $4,630,131 | $12,621,461 | $4,782,298 | ||||||||||||
Expenses | ||||||||||||||||
Management fee | $845,108 | $496,303 | $1,353,702 | $513,123 | ||||||||||||
Distribution and service fees | 455,417 | 236,141 | 842,023 | 275,425 | ||||||||||||
Shareholder servicing costs | 143,902 | 95,540 | 270,517 | 104,738 | ||||||||||||
Administrative services fee | 38,976 | 26,902 | 56,570 | 27,498 | ||||||||||||
Independent Trustees’ compensation | 5,373 | 4,847 | 9,826 | 5,221 | ||||||||||||
Custodian fee | 31,980 | 22,979 | 47,051 | 20,571 | ||||||||||||
Shareholder communications | 12,426 | 8,016 | 19,645 | 8,513 | ||||||||||||
Audit and tax fees | 53,970 | 53,949 | 54,000 | 53,951 | ||||||||||||
Legal fees | 16,077 | 14,021 | 15,820 | 11,634 | ||||||||||||
Registration fees | 62,606 | 61,677 | 76,402 | 62,219 | ||||||||||||
Interest expense and fees | — | — | 82,665 | — | ||||||||||||
Miscellaneous | 20,899 | 18,232 | 24,309 | 17,761 | ||||||||||||
Total expenses | $1,686,734 | $1,038,607 | $2,852,530 | $1,100,654 | ||||||||||||
Fees paid indirectly | (104 | ) | (55 | ) | (86 | ) | (159 | ) | ||||||||
Reduction of expenses by investment adviser and distributor | (130,367 | ) | (108,119 | ) | (253,651 | ) | (130,195 | ) | ||||||||
Net expenses | $1,556,263 | $930,433 | $2,598,793 | $970,300 | ||||||||||||
Net investment income (loss) | $6,028,600 | $3,699,698 | $10,022,668 | $3,811,998 | ||||||||||||
Realized and unrealized gain (loss) | ||||||||||||||||
Realized gain (loss) (identified cost basis) | ||||||||||||||||
Unaffiliated issuers | $849,792 | $453,603 | $828,704 | $239,962 | ||||||||||||
Affiliated issuers | (63 | ) | (45 | ) | (159 | ) | (263 | ) | ||||||||
Futures contracts | 99,816 | — | — | — | ||||||||||||
Net realized gain (loss) | $949,545 | $453,558 | $828,545 | $239,699 | ||||||||||||
Change in unrealized appreciation (depreciation) | ||||||||||||||||
Unaffiliated issuers | $(2,525,117 | ) | $(1,921,639 | ) | $(4,614,128 | ) | $(1,519,989 | ) | ||||||||
Affiliated issuers | 401 | 32 | 358 | 8 | ||||||||||||
Net unrealized gain (loss) | $(2,524,716 | ) | $(1,921,607 | ) | $(4,613,770 | ) | $(1,519,981 | ) | ||||||||
Net realized and unrealized gain (loss) | $(1,575,171 | ) | $(1,468,049 | ) | $(3,785,225 | ) | $(1,280,282 | ) | ||||||||
Change in net assets from operations | $4,453,429 | $2,231,649 | $6,237,443 | $2,531,716 |
See Notes to Financial Statements
79
Table of Contents
Financial Statements
STATEMENTS OF CHANGES IN NET ASSETS
These statements describe the increases and/or decreases in net assets resulting from operations, any distributions, and any shareholder transactions.
Year ended 3/31/18 | Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | ||||||||||||
Change in net assets | ||||||||||||||||
From operations | ||||||||||||||||
Net investment income (loss) | $2,919,179 | $7,856,699 | $12,497,724 | $4,874,401 | ||||||||||||
Net realized gain (loss) | 96,646 | 1,621,111 | 543,065 | 355,231 | ||||||||||||
Net unrealized gain (loss) | (1,162,717 | ) | (3,697,702 | ) | (5,409,865 | ) | (1,189,045 | ) | ||||||||
Change in net assets from operations | $1,853,108 | $5,780,108 | $7,630,924 | $4,040,587 | ||||||||||||
Distributions declared to shareholders | ||||||||||||||||
From net investment income | $(2,905,463 | ) | $(7,406,413 | ) | $(11,805,586 | ) | $(4,543,541 | ) | ||||||||
Change in net assets from fund share transactions | $1,458,514 | $25,286,785 | $38,303,917 | $2,031,984 | ||||||||||||
Total change in net assets | $406,159 | $23,660,480 | $34,129,255 | $1,529,030 | ||||||||||||
Net assets | ||||||||||||||||
At beginning of period | 90,227,316 | 205,582,437 | 363,164,904 | 123,034,740 | ||||||||||||
At end of period | $90,633,475 | $229,242,917 | $397,294,159 | $124,563,770 | ||||||||||||
Accumulated undistributed (distributions in excess of) net investment income included in net assets at end of period | $60,904 | $(8,962 | ) | $92,912 | $9,722 | |||||||||||
Year ended 3/31/18 | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | ||||||||||||
Change in net assets | ||||||||||||||||
From operations | ||||||||||||||||
Net investment income (loss) | $6,028,600 | $3,699,698 | $10,022,668 | $3,811,998 | ||||||||||||
Net realized gain (loss) | 949,545 | 453,558 | 828,545 | 239,699 | ||||||||||||
Net unrealized gain (loss) | (2,524,716 | ) | (1,921,607 | ) | (4,613,770 | ) | (1,519,981 | ) | ||||||||
Change in net assets from operations | $4,453,429 | $2,231,649 | $6,237,443 | $2,531,716 | ||||||||||||
Distributions declared to shareholders | ||||||||||||||||
From net investment income | $(5,745,985 | ) | $(3,528,723 | ) | $(9,520,824 | ) | $(3,682,257 | ) | ||||||||
Change in net assets from fund share transactions | $1,956,231 | $(3,524,318 | ) | $4,327,384 | $(6,919,104 | ) | ||||||||||
Total change in net assets | $663,675 | $(4,821,392 | ) | $1,044,003 | $(8,069,645 | ) | ||||||||||
Net assets | ||||||||||||||||
At beginning of period | 185,870,138 | 110,449,518 | 295,304,728 | 116,863,882 | ||||||||||||
At end of period | $186,533,813 | $105,628,126 | $296,348,731 | $108,794,237 | ||||||||||||
Accumulated undistributed (distributions in excess of) net investment income included in net assets at end of period | $(16,555 | ) | $475,803 | $(92,540 | ) | $(11,031 | ) |
See Notes to Financial Statements
80
Table of Contents
Statements of Changes in Net Assets – continued
Year ended 3/31/17 | Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | ||||||||||||
Change in net assets | ||||||||||||||||
From operations | ||||||||||||||||
Net investment income (loss) | $3,132,214 | $7,506,988 | $12,195,868 | $4,491,373 | ||||||||||||
Net realized gain (loss) | (461,811 | ) | (743,455 | ) | (642,090 | ) | (70,652 | ) | ||||||||
Net unrealized gain (loss) | (3,289,040 | ) | (6,821,864 | ) | (12,603,901 | ) | (3,889,264 | ) | ||||||||
Change in net assets from operations | $(618,637 | ) | $(58,331 | ) | $(1,050,123 | ) | $531,457 | |||||||||
Distributions declared to shareholders | ||||||||||||||||
From net investment income | $(3,093,535 | ) | $(7,242,260 | ) | $(11,962,987 | ) | $(4,404,945 | ) | ||||||||
Change in net assets from fund share transactions | $4,342,783 | $10,779,901 | $25,587,104 | $5,478,916 | ||||||||||||
Total change in net assets | $630,611 | $3,479,310 | $12,573,994 | $1,605,428 | ||||||||||||
Net assets | ||||||||||||||||
At beginning of period | 89,596,705 | 202,103,127 | 350,590,910 | 121,429,312 | ||||||||||||
At end of period | $90,227,316 | $205,582,437 | $363,164,904 | $123,034,740 | ||||||||||||
Accumulated undistributed (distributions in excess of) net investment income included in net assets at end of period | $42,942 | $110,179 | $73,045 | $(2,597 | ) | |||||||||||
Year ended 3/31/17 | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | ||||||||||||
Change in net assets | ||||||||||||||||
From operations | ||||||||||||||||
Net investment income (loss) | $5,945,993 | $3,851,259 | $10,372,574 | $4,083,873 | ||||||||||||
Net realized gain (loss) | (836,747 | ) | (204,461 | ) | (876,678 | ) | (204,375 | ) | ||||||||
Net unrealized gain (loss) | (6,367,327 | ) | (3,866,912 | ) | (10,184,354 | ) | (3,878,180 | ) | ||||||||
Change in net assets from operations | $(1,258,081 | ) | $(220,114 | ) | $(688,458 | ) | $1,318 | |||||||||
Distributions declared to shareholders | ||||||||||||||||
From net investment income | $(5,705,721 | ) | $(3,615,651 | ) | $(10,129,218 | ) | $(3,906,162 | ) | ||||||||
Change in net assets from fund share transactions | $12,264,504 | $6,685,657 | $27,978,090 | $(1,798,989 | ) | |||||||||||
Total change in net assets | $5,300,702 | $2,849,892 | $17,160,414 | $(5,703,833 | ) | |||||||||||
Net assets | ||||||||||||||||
At beginning of period | 180,569,436 | 107,599,626 | 278,144,314 | 122,567,715 | ||||||||||||
At end of period | $185,870,138 | $110,449,518 | $295,304,728 | $116,863,882 | ||||||||||||
Accumulated undistributed (distributions in excess of) net investment income included in net assets at end of period | $(28,002 | ) | $509,248 | $(67,638 | ) | $19,287 |
See Notes to Financial Statements
81
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 past 5 years (or life of a particular share class, if shorter). Certain information reflects financial results for a single fund share. The total returns in the table represent the rate that 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.
Year ended | ||||||||||||||||||||
Class A | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | |||||||||||||||
Net asset value, beginning of period | $9.64 | $10.02 | $10.01 | $9.67 | $10.27 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.31 | $0.34 | (c) | $0.36 | $0.35 | $0.38 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.11 | ) | (0.39 | ) | (0.01 | ) | 0.34 | (0.57 | ) | |||||||||||
Total from investment operations | $0.20 | $(0.05 | ) | $0.35 | $0.69 | $(0.19 | ) | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.31 | ) | $(0.33 | ) | $(0.34 | ) | $(0.35 | ) | $(0.37 | ) | ||||||||||
From net realized gain | — | — | — | — | (0.04 | ) | ||||||||||||||
Total distributions declared to shareholders | $(0.31 | ) | $(0.33 | ) | $(0.34 | ) | $(0.35 | ) | $(0.41 | ) | ||||||||||
Net asset value, end of period (x) | $9.53 | $9.64 | $10.02 | $10.01 | $9.67 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 2.07 | (0.49 | )(c) | 3.60 | 7.18 | (1.82 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.00 | 0.98 | (c) | 0.96 | 0.96 | 0.95 | ||||||||||||||
Expenses after expense reductions (f) | 0.83 | 0.81 | (c) | 0.80 | 0.80 | 0.80 | ||||||||||||||
Net investment income (loss) | 3.21 | 3.41 | (c) | 3.63 | 3.56 | 3.87 | ||||||||||||||
Portfolio turnover | 11 | 14 | 17 | 16 | 19 | |||||||||||||||
Net assets at end of period (000 omitted) | $82,526 | $84,401 | $88,070 | $85,927 | $85,405 | |||||||||||||||
Year ended | ||||||||||||||||||||
Class B | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | |||||||||||||||
Net asset value, beginning of period | $9.65 | $10.04 | $10.02 | $9.68 | $10.28 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.25 | $0.27 | (c) | $0.29 | $0.29 | $0.31 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.11 | ) | (0.39 | ) | (0.00 | )(w) | 0.33 | (0.57 | ) | |||||||||||
Total from investment operations | $0.14 | $(0.12 | ) | $0.29 | $0.62 | $(0.26 | ) | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.25 | ) | $(0.27 | ) | $(0.27 | ) | $(0.28 | ) | $(0.30 | ) | ||||||||||
From net realized gain | — | — | — | — | (0.04 | ) | ||||||||||||||
Total distributions declared to shareholders | $(0.25 | ) | $(0.27 | ) | $(0.27 | ) | $(0.28 | ) | $(0.34 | ) | ||||||||||
Net asset value, end of period (x) | $9.54 | $9.65 | $10.04 | $10.02 | $9.68 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 1.40 | (1.25 | )(c) | 3.01 | 6.47 | (2.50 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.75 | 1.72 | (c) | 1.71 | 1.71 | 1.70 | ||||||||||||||
Expenses after expense reductions (f) | 1.50 | 1.48 | (c) | 1.47 | 1.47 | 1.49 | ||||||||||||||
Net investment income (loss) | 2.55 | 2.74 | (c) | 2.96 | 2.90 | 3.17 | ||||||||||||||
Portfolio turnover | 11 | 14 | 17 | 16 | 19 | |||||||||||||||
Net assets at end of period (000 omitted) | $1,007 | $1,180 | $1,477 | $1,655 | $2,059 |
See Notes to Financial Statements
82
Table of Contents
Financial Highlights – continued
MFS MISSISSIPPI MUNICIPAL BOND FUND – continued
Year ended | ||||||||
Class I | 3/31/18 | 3/31/17 (i) | ||||||
Net asset value, beginning of period | $9.62 | $10.00 | ||||||
Income (loss) from investment operations | ||||||||
Net investment income (loss) (d) | $0.32 | $0.34 | (c) | |||||
Net realized and unrealized gain (loss) | (0.11 | ) | (0.38 | ) | ||||
Total from investment operations | $0.21 | $(0.04 | ) | |||||
Less distributions declared to shareholders | ||||||||
From net investment income | $(0.32 | ) | $(0.34 | ) | ||||
Net asset value, end of period (x) | $9.51 | $9.62 | ||||||
Total return (%) (r)(s)(t)(x) | 2.15 | (0.42 | )(c) | |||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||
Expenses before expense reductions (f) | 0.74 | 0.75 | (c) | |||||
Expenses after expense reductions (f) | 0.74 | 0.75 | (c) | |||||
Net investment income (loss) | 3.29 | 3.44 | (c) | |||||
Portfolio turnover | 11 | 14 | ||||||
Net assets at end of period (000 omitted) | $6,540 | $4,646 | ||||||
Year ended | ||||||||
Class R6 | 3/31/18 (i) | |||||||
Net asset value, beginning of period | $9.76 | |||||||
Income (loss) from investment operations | ||||||||
Net investment income (loss) (d) | $0.21 | |||||||
Net realized and unrealized gain (loss) | (0.24 | ) | ||||||
Total from investment operations | $(0.03 | ) | ||||||
Less distributions declared to shareholders | ||||||||
From net investment income | $(0.22 | ) | ||||||
Net asset value, end of period (x) | $9.51 | |||||||
Total return (%) (r)(s)(t)(x) | (0.36 | )(n) | ||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||
Expenses before expense reductions (f) | 0.71 | (a) | ||||||
Expenses after expense reductions (f) | 0.70 | (a) | ||||||
Net investment income (loss) | 3.33 | (a) | ||||||
Portfolio turnover | 11 | |||||||
Net assets at end of period (000 omitted) | $560 |
(a) | Annualized. |
(c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(i) | For the period from the class inception, April 1, 2016 (Class I) and August 1, 2017 (Class R6), through the stated period end. |
(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
83
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 past 5 years (or life of a particular share class, if shorter). Certain information reflects financial results for a single fund share. The total returns in the table represent the rate that 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.
Year ended | ||||||||||||||||||||
Class A | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | |||||||||||||||
Net asset value, beginning of period | $10.93 | $11.31 | $11.25 | $10.74 | $11.50 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.40 | $0.41 | (c) | $0.43 | $0.39 | $0.43 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.08 | ) | (0.39 | ) | 0.01 | 0.51 | (0.79 | ) | ||||||||||||
Total from investment operations | $0.32 | $0.02 | $0.44 | $0.90 | $(0.36 | ) | ||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.38 | ) | $(0.40 | ) | $(0.38 | ) | $(0.39 | ) | $(0.40 | ) | ||||||||||
Net asset value, end of period (x) | $10.87 | $10.93 | $11.31 | $11.25 | $10.74 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 2.89 | 0.15 | (c) | 4.05 | 8.48 | (3.04 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 0.89 | 0.89 | (c) | 0.88 | 0.88 | 0.88 | ||||||||||||||
Expenses after expense reductions (f) | 0.88 | 0.88 | (c) | 0.87 | 0.87 | 0.88 | ||||||||||||||
Net investment income (loss) | 3.60 | 3.68 | (c) | 3.84 | 3.51 | 3.94 | ||||||||||||||
Portfolio turnover | 23 | 28 | 13 | 25 | 25 | |||||||||||||||
Net assets at end of period (000 omitted) | $143,689 | $124,890 | $169,905 | $164,566 | $155,149 | |||||||||||||||
Year ended | ||||||||||||||||||||
Class B | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | |||||||||||||||
Net asset value, beginning of period | $10.90 | $11.28 | $11.22 | $10.71 | $11.47 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.32 | $0.33 | (c) | $0.34 | $0.31 | $0.34 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.09 | ) | (0.40 | ) | 0.02 | 0.51 | (0.78 | ) | ||||||||||||
Total from investment operations | $0.23 | $(0.07 | ) | $0.36 | $0.82 | $(0.44 | ) | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.29 | ) | $(0.31 | ) | $(0.30 | ) | $(0.31 | ) | $(0.32 | ) | ||||||||||
Net asset value, end of period (x) | $10.84 | $10.90 | $11.28 | $11.22 | $10.71 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 2.12 | (0.60 | )(c) | 3.28 | 7.69 | (3.77 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.64 | 1.64 | (c) | 1.63 | 1.63 | 1.64 | ||||||||||||||
Expenses after expense reductions (f) | 1.64 | 1.63 | (c) | 1.63 | 1.63 | 1.63 | ||||||||||||||
Net investment income (loss) | 2.87 | 2.94 | (c) | 3.10 | 2.76 | 3.20 | ||||||||||||||
Portfolio turnover | 23 | 28 | 13 | 25 | 25 | |||||||||||||||
Net assets at end of period (000 omitted) | $3,980 | $5,032 | $5,398 | $5,459 | $5,501 |
See Notes to Financial Statements
84
Table of Contents
Financial Highlights – continued
MFS NEW YORK MUNICIPAL BOND FUND – continued
Year ended | ||||||||||||||||||||
Class C | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | |||||||||||||||
Net asset value, beginning of period | $10.92 | $11.30 | $11.23 | $10.72 | $11.48 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.31 | $0.33 | (c) | $0.34 | $0.31 | $0.35 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.08 | ) | (0.39 | ) | 0.03 | 0.51 | (0.79 | ) | ||||||||||||
Total from investment operations | $0.23 | $(0.06 | ) | $0.37 | $0.82 | $(0.44 | ) | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.29 | ) | $(0.32 | ) | $(0.30 | ) | $(0.31 | ) | $(0.32 | ) | ||||||||||
Net asset value, end of period (x) | $10.86 | $10.92 | $11.30 | $11.23 | $10.72 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 2.12 | (0.60 | )(c) | 3.37 | 7.68 | (3.77 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.64 | 1.64 | (c) | 1.63 | 1.63 | 1.64 | ||||||||||||||
Expenses after expense reductions (f) | 1.64 | 1.63 | (c) | 1.62 | 1.63 | 1.63 | ||||||||||||||
Net investment income (loss) | 2.85 | 2.94 | (c) | 3.09 | 2.76 | 3.20 | ||||||||||||||
Portfolio turnover | 23 | 28 | 13 | 25 | 25 | |||||||||||||||
Net assets at end of period (000 omitted) | $22,932 | $25,246 | $26,751 | $25,092 | $24,225 | |||||||||||||||
Year ended | ||||||||||||||||||||
Class I | 3/31/18 | 3/31/17 (i) | ||||||||||||||||||
Net asset value, beginning of period | $9.67 | $10.00 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.38 | $0.39 | (c) | |||||||||||||||||
Net realized and unrealized gain (loss) | (0.08 | ) | (0.34 | ) | ||||||||||||||||
Total from investment operations | $0.30 | $0.05 | ||||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.36 | ) | $(0.38 | ) | ||||||||||||||||
Net asset value, end of period (x) | $9.61 | $9.67 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 3.07 | 0.49 | (c) | |||||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 0.64 | 0.64 | (c) | |||||||||||||||||
Expenses after expense reductions (f) | 0.64 | 0.64 | (c) | |||||||||||||||||
Net investment income (loss) | 3.84 | 3.97 | (c) | |||||||||||||||||
Portfolio turnover | 23 | 28 | ||||||||||||||||||
Net assets at end of period (000 omitted) | $57,349 | $50,414 |
See Notes to Financial Statements
85
Table of Contents
Financial Highlights – continued
MFS NEW YORK MUNICIPAL BOND FUND – continued
Class R6 | Year ended 3/31/18 (i) | |||
Net asset value, beginning of period | $9.83 | |||
Income (loss) from investment operations | ||||
Net investment income (loss) (d) | $0.24 | |||
Net realized and unrealized gain (loss) | (0.23 | ) | ||
Total from investment operations | $0.01 | |||
Less distributions declared to shareholders | ||||
From net investment income | $(0.23 | ) | ||
Net asset value, end of period (x) | $9.61 | |||
Total return (%) (r)(s)(t)(x) | 0.11 | (n) | ||
Ratios (%) (to average net assets) and Supplemental data: | ||||
Expenses before expense reductions (f) | 0.60 | (a) | ||
Expenses after expense reductions (f) | 0.59 | (a) | ||
Net investment income (loss) | 3.80 | (a) | ||
Portfolio turnover | 23 | |||
Net assets at end of period (000 omitted) | $1,293 |
(a) | Annualized. |
(c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(i) | For the period from the class inception, April 1, 2016 (Class I) and August 1, 2017 (Class R6), through the stated period end. |
(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
86
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 past 5 years (or life of a particular share class, if shorter). Certain information reflects financial results for a single fund share. The total returns in the table represent the rate that 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.
Year ended | ||||||||||||||||||||
Class A | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | |||||||||||||||
Net asset value, beginning of period | $11.59 | $12.01 | $12.00 | $11.58 | $12.38 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.40 | $0.41 | (c) | $0.42 | $0.42 | $0.43 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.14 | ) | (0.42 | ) | (0.01 | ) | 0.40 | (0.76 | ) | |||||||||||
Total from investment operations | $0.26 | $(0.01 | ) | $0.41 | $0.82 | $(0.33 | ) | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.37 | ) | $(0.41 | ) | $(0.40 | ) | $(0.40 | ) | $(0.41 | ) | ||||||||||
From net realized gain | — | — | — | — | (0.06 | ) | ||||||||||||||
Total distributions declared to shareholders | $(0.37 | ) | $(0.41 | ) | $(0.40 | ) | $(0.40 | ) | $(0.47 | ) | ||||||||||
Net asset value, end of period (x) | $11.48 | $11.59 | $12.01 | $12.00 | $11.58 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 2.28 | (0.14 | )(c) | 3.48 | 7.13 | (2.66 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 0.87 | 0.87 | (c) | 0.87 | 0.86 | 0.87 | ||||||||||||||
Expenses after expense reductions (f) | 0.86 | 0.86 | (c) | 0.86 | 0.85 | 0.86 | ||||||||||||||
Net investment income (loss) | 3.39 | 3.48 | (c) | 3.52 | 3.50 | 3.64 | ||||||||||||||
Portfolio turnover | 12 | 22 | 9 | 16 | 17 | |||||||||||||||
Net assets at end of period (000 omitted) | $283,545 | $263,433 | $289,167 | $281,268 | $278,717 | |||||||||||||||
Year ended | ||||||||||||||||||||
Class B | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | |||||||||||||||
Net asset value, beginning of period | $11.58 | $11.99 | $11.98 | $11.56 | $12.37 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.31 | $0.32 | (c) | $0.33 | $0.33 | $0.34 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.14 | ) | (0.41 | ) | (0.01 | ) | 0.40 | (0.77 | ) | |||||||||||
Total from investment operations | $0.17 | $(0.09 | ) | $0.32 | $0.73 | $(0.43 | ) | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.29 | ) | $(0.32 | ) | $(0.31 | ) | $(0.31 | ) | $(0.32 | ) | ||||||||||
From net realized gain | — | — | — | — | (0.06 | ) | ||||||||||||||
Total distributions declared to shareholders | $(0.29 | ) | $(0.32 | ) | $(0.31 | ) | $(0.31 | ) | $(0.38 | ) | ||||||||||
Net asset value, end of period (x) | $11.46 | $11.58 | $11.99 | $11.98 | $11.56 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 1.43 | (0.81 | )(c) | 2.71 | 6.34 | (3.47 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.62 | 1.62 | (c) | 1.62 | 1.61 | 1.62 | ||||||||||||||
Expenses after expense reductions (f) | 1.62 | 1.61 | (c) | 1.61 | 1.61 | 1.62 | ||||||||||||||
Net investment income (loss) | 2.65 | 2.73 | (c) | 2.78 | 2.76 | 2.89 | ||||||||||||||
Portfolio turnover | 12 | 22 | 9 | 16 | 17 | |||||||||||||||
Net assets at end of period (000 omitted) | $2,288 | $3,303 | $4,213 | $4,738 | $5,082 |
See Notes to Financial Statements
87
Table of Contents
Financial Highlights – continued
MFS NORTH CAROLINA MUNICIPAL BOND FUND – continued
Year ended | ||||||||||||||||||||
Class C | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | |||||||||||||||
Net asset value, beginning of period | $11.59 | $12.00 | $11.99 | $11.57 | $12.37 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.31 | $0.32 | (c) | $0.33 | $0.33 | $0.34 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.14 | ) | (0.41 | ) | (0.01 | ) | 0.40 | (0.76 | ) | |||||||||||
Total from investment operations | $0.17 | $(0.09 | ) | $0.32 | $0.73 | $(0.42 | ) | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.29 | ) | $(0.32 | ) | $(0.31 | ) | $(0.31 | ) | $(0.32 | ) | ||||||||||
From net realized gain | — | — | — | — | (0.06 | ) | ||||||||||||||
Total distributions declared to shareholders | $(0.29 | ) | $(0.32 | ) | $(0.31 | ) | $(0.31 | ) | $(0.38 | ) | ||||||||||
Net asset value, end of period (x) | $11.47 | $11.59 | $12.00 | $11.99 | $11.57 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 1.42 | (0.81 | )(c) | 2.71 | 6.33 | (3.39 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.62 | 1.62 | (c) | 1.62 | 1.61 | 1.62 | ||||||||||||||
Expenses after expense reductions (f) | 1.62 | 1.61 | (c) | 1.61 | 1.60 | 1.62 | ||||||||||||||
Net investment income (loss) | 2.64 | 2.73 | (c) | 2.77 | 2.75 | 2.89 | ||||||||||||||
Portfolio turnover | 12 | 22 | 9 | 16 | 17 | |||||||||||||||
Net assets at end of period (000 omitted) | $53,117 | $57,868 | $57,161 | $56,074 | $56,314 | |||||||||||||||
Year ended | ||||||||||||||||||||
Class I | 3/31/18 | 3/31/17 (i) | ||||||||||||||||||
Net asset value, beginning of period | $9.66 | $10.00 | ||||||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.35 | $0.37 | (c) | |||||||||||||||||
Net realized and unrealized gain (loss) | (0.10 | ) | (0.34 | ) | ||||||||||||||||
Total from investment operations | $0.25 | $0.03 | ||||||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.34 | ) | $(0.37 | ) | ||||||||||||||||
Net asset value, end of period (x) | $9.57 | $9.66 | ||||||||||||||||||
Total return (%) (r)(s)(t)(x) | 2.54 | 0.23 | (c) | |||||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 0.62 | 0.62 | (c) | |||||||||||||||||
Expenses after expense reductions (f) | 0.61 | 0.62 | (c) | |||||||||||||||||
Net investment income (loss) | 3.62 | 3.71 | (c) | |||||||||||||||||
Portfolio turnover | 12 | 22 | ||||||||||||||||||
Net assets at end of period (000 omitted) | $45,147 | $38,561 |
See Notes to Financial Statements
88
Table of Contents
Financial Highlights – continued
MFS NORTH CAROLINA MUNICIPAL BOND FUND – continued
Class R6 | Year ended 3/31/18 (i) | |||
Net asset value, beginning of period | $9.78 | |||
Income (loss) from investment operations | ||||
Net investment income (loss) (d) | $0.23 | |||
Net realized and unrealized gain (loss) | (0.22 | ) | ||
Total from investment operations | $0.01 | |||
Less distributions declared to shareholders | ||||
From net investment income | $(0.22 | ) | ||
Net asset value, end of period (x) | $9.57 | |||
Total return (%) (r)(s)(t)(x) | 0.15 | (n) | ||
Ratios (%) (to average net assets) and Supplemental data: | ||||
Expenses before expense reductions (f) | 0.55 | (a) | ||
Expenses after expense reductions (f) | 0.55 | (a) | ||
Net investment income (loss) | 3.64 | (a) | ||
Portfolio turnover | 12 | |||
Net assets at end of period (000 omitted) | $13,198 |
(a) | Annualized. |
(c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(i) | For the period from the class inception, April 1, 2016 (Class I) and August 1, 2017 (Class R6), through the stated period end. |
(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
89
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 past 5 years (or life of a particular share class, if shorter). Certain information reflects financial results for a single fund share. The total returns in the table represent the rate that 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.
Year ended | ||||||||||||||||||||
Class A | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | |||||||||||||||
Net asset value, beginning of period | $10.19 | $10.50 | $10.44 | $9.99 | $10.63 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.40 | $0.38 | $0.39 | $0.35 | $0.39 | |||||||||||||||
Net realized and unrealized gain (loss) | (0.07 | ) | (0.32 | ) | 0.03 | 0.45 | (0.66 | ) | ||||||||||||
Total from investment operations | $0.33 | $0.06 | $0.42 | $0.80 | $(0.27 | ) | ||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.37 | ) | $(0.37 | ) | $(0.36 | ) | $(0.35 | ) | $(0.37 | ) | ||||||||||
Net asset value, end of period (x) | $10.15 | $10.19 | $10.50 | $10.44 | $9.99 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 3.29 | 0.57 | 4.16 | 8.10 | (2.52 | ) | ||||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 0.97 | 0.96 | 0.94 | 0.95 | 0.93 | |||||||||||||||
Expenses after expense reductions (f) | 0.81 | 0.80 | 0.79 | 0.79 | 0.78 | |||||||||||||||
Net investment income (loss) | 3.90 | 3.64 | 3.73 | 3.42 | 3.90 | |||||||||||||||
Portfolio turnover | 16 | 15 | 16 | 23 | 21 | |||||||||||||||
Net assets at end of period (000 omitted) | $99,319 | $98,907 | $115,732 | $110,378 | $110,449 | |||||||||||||||
Year ended | ||||||||||||||||||||
Class B | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | |||||||||||||||
Net asset value, beginning of period | $10.21 | $10.52 | $10.47 | $10.02 | $10.65 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.32 | $0.30 | $0.31 | $0.27 | $0.31 | |||||||||||||||
Net realized and unrealized gain (loss) | (0.05 | ) | (0.32 | ) | 0.02 | 0.45 | (0.65 | ) | ||||||||||||
Total from investment operations | $0.27 | $(0.02 | ) | $0.33 | $0.72 | $(0.34 | ) | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.30 | ) | $(0.29 | ) | $(0.28 | ) | $(0.27 | ) | $(0.29 | ) | ||||||||||
Net asset value, end of period (x) | $10.18 | $10.21 | $10.52 | $10.47 | $10.02 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 2.62 | (0.19 | ) | 3.26 | 7.26 | (3.16 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.72 | 1.71 | 1.69 | 1.70 | 1.68 | |||||||||||||||
Expenses after expense reductions (f) | 1.56 | 1.56 | 1.54 | 1.55 | 1.55 | |||||||||||||||
Net investment income (loss) | 3.15 | 2.87 | 2.96 | 2.65 | 3.12 | |||||||||||||||
Portfolio turnover | 16 | 15 | 16 | 23 | 21 | |||||||||||||||
Net assets at end of period (000 omitted) | $3,462 | $4,740 | $5,647 | $6,212 | $6,936 |
See Notes to Financial Statements
90
Table of Contents
Financial Highlights – continued
MFS PENNSYLVANIA MUNICIPAL BOND FUND – continued
Year ended | ||||||||
Class I | 3/31/18 | 3/31/17 (i) | ||||||
Net asset value, beginning of period | $9.71 | $10.00 | ||||||
Income (loss) from investment operations | ||||||||
Net investment income (loss) (d) | $0.39 | $0.36 | ||||||
Net realized and unrealized gain (loss) | (0.07 | ) | (0.29 | ) | ||||
Total from investment operations | $0.32 | $0.07 | ||||||
Less distributions declared to shareholders | ||||||||
From net investment income | $(0.36 | ) | $(0.36 | ) | ||||
Net asset value, end of period (x) | $9.67 | $9.71 | ||||||
Total return (%) (r)(s)(t)(x) | 3.37 | 0.73 | ||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||
Expenses before expense reductions (f) | 0.71 | 0.74 | ||||||
Expenses after expense reductions (f) | 0.71 | 0.73 | ||||||
Net investment income (loss) | 3.99 | 3.69 | ||||||
Portfolio turnover | 16 | 15 | ||||||
Net assets at end of period (000 omitted) | $20,579 | $19,388 | ||||||
Year ended | ||||||||
Class R6 | 3/31/18 (i) | |||||||
Net asset value, beginning of period | $9.84 | |||||||
Income (loss) from investment operations | ||||||||
Net investment income (loss) (d) | $0.26 | |||||||
Net realized and unrealized gain (loss) | (0.18 | ) | ||||||
Total from investment operations | $0.08 | |||||||
Less distributions declared to shareholders | ||||||||
From net investment income | $(0.25 | ) | ||||||
Net asset value, end of period (x) | $9.67 | |||||||
Total return (%) (r)(s)(t)(x) | 0.78 | (n) | ||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||
Expenses before expense reductions (f) | 0.67 | (a) | ||||||
Expenses after expense reductions (f) | 0.66 | (a) | ||||||
Net investment income (loss) | 4.02 | (a) | ||||||
Portfolio turnover | 16 | |||||||
Net assets at end of period (000 omitted) | $1,205 |
(a) | Annualized. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(i) | For the period from the class inception, April 1, 2016 (Class I) and August 1, 2017 (Class R6), through the stated period end. |
(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
91
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 past 5 years (or life of a particular share class, if shorter). Certain information reflects financial results for a single fund share. The total returns in the table represent the rate that 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.
Year ended | ||||||||||||||||||||
Class A | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | |||||||||||||||
Net asset value, beginning of period | $11.91 | $12.35 | $12.29 | $11.78 | $12.61 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.38 | $0.39 | (c) | $0.39 | $0.36 | $0.43 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.09 | ) | (0.46 | ) | 0.03 | 0.51 | (0.85 | ) | ||||||||||||
Total from investment operations | $0.29 | $(0.07 | ) | $0.42 | $0.87 | $(0.42 | ) | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.37 | ) | $(0.37 | ) | $(0.36 | ) | $(0.36 | ) | $(0.41 | ) | ||||||||||
Net asset value, end of period (x) | $11.83 | $11.91 | $12.35 | $12.29 | $11.78 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 2.41 | (0.56 | )(c) | 3.52 | 7.48 | (3.31 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 0.91 | 0.90 | (c) | 0.89 | 0.90 | 0.89 | ||||||||||||||
Expenses after expense reductions (f) | 0.84 | 0.83 | (c) | 0.85 | 0.89 | 0.89 | ||||||||||||||
Net investment income (loss) | 3.20 | 3.19 | (c) | 3.17 | 2.97 | 3.59 | ||||||||||||||
Portfolio turnover | 15 | 19 | 8 | 22 | 24 | |||||||||||||||
Net assets at end of period (000 omitted) | $159,257 | $169,953 | $176,282 | $170,887 | $166,428 | |||||||||||||||
Year ended | ||||||||||||||||||||
Class B | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | |||||||||||||||
Net asset value, beginning of period | $11.90 | $12.34 | $12.28 | $11.77 | $12.61 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.29 | $0.30 | (c) | $0.29 | $0.27 | $0.34 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.09 | ) | (0.46 | ) | 0.04 | 0.51 | (0.86 | ) | ||||||||||||
Total from investment operations | $0.20 | $(0.16 | ) | $0.33 | $0.78 | $(0.52 | ) | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.28 | ) | $(0.28 | ) | $(0.27 | ) | $(0.27 | ) | $(0.32 | ) | ||||||||||
Net asset value, end of period (x) | $11.82 | $11.90 | $12.34 | $12.28 | $11.77 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 1.64 | (1.31 | )(c) | 2.75 | 6.69 | (4.11 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.66 | 1.65 | (c) | 1.65 | 1.65 | 1.64 | ||||||||||||||
Expenses after expense reductions (f) | 1.59 | 1.59 | (c) | 1.61 | 1.64 | 1.64 | ||||||||||||||
Net investment income (loss) | 2.46 | 2.44 | (c) | 2.42 | 2.22 | 2.84 | ||||||||||||||
Portfolio turnover | 15 | 19 | 8 | 22 | 24 | |||||||||||||||
Net assets at end of period (000 omitted) | $2,718 | $3,777 | $4,238 | $4,635 | $5,125 |
See Notes to Financial Statements
92
Table of Contents
Financial Highlights – continued
MFS SOUTH CAROLINA MUNICIPAL BOND FUND – continued
Year ended | ||||||||
Class I | 3/31/18 | 3/31/17 (i) | ||||||
Net asset value, beginning of period | $9.65 | $10.00 | ||||||
Income (loss) from investment operations | ||||||||
Net investment income (loss) (d) | $0.33 | $0.34 | (c) | |||||
Net realized and unrealized gain (loss) | (0.08 | ) | (0.36 | ) | ||||
Total from investment operations | $0.25 | $(0.02 | ) | |||||
Less distributions declared to shareholders | ||||||||
From net investment income | $(0.32 | ) | $(0.33 | ) | ||||
Net asset value, end of period (x) | $9.58 | $9.65 | ||||||
Total return (%) (r)(s)(t)(x) | 2.60 | (0.21 | )(c) | |||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||
Expenses before expense reductions (f) | 0.66 | 0.65 | (c) | |||||
Expenses after expense reductions (f) | 0.59 | 0.59 | (c) | |||||
Net investment income (loss) | 3.44 | 3.45 | (c) | |||||
Portfolio turnover | 15 | 19 | ||||||
Net assets at end of period (000 omitted) | $21,954 | $12,140 | ||||||
Year ended | ||||||||
Class R6 | 3/31/18 (i) | |||||||
Net asset value, beginning of period | $9.79 | |||||||
Income (loss) from investment operations | ||||||||
Net investment income (loss) (d) | $0.23 | |||||||
Net realized and unrealized gain (loss) | (0.22 | ) | ||||||
Total from investment operations | $0.01 | |||||||
Less distributions declared to shareholders | ||||||||
From net investment income | $(0.22 | ) | ||||||
Net asset value, end of period (x) | $9.58 | |||||||
Total return (%) (r)(s)(t)(x) | 0.08 | (n) | ||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||
Expenses before expense reductions (f) | 0.60 | (a) | ||||||
Expenses after expense reductions (f) | 0.52 | (a) | ||||||
Net investment income (loss) | 3.53 | (a) | ||||||
Portfolio turnover | 15 | |||||||
Net assets at end of period (000 omitted) | $2,605 |
(a) | Annualized. |
(c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(i) | For the period from the class inception, April 1, 2016 (Class I) and August 1, 2017 (Class R6), through the stated period end. |
(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
93
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 past 5 years (or life of a particular share class, if shorter). Certain information reflects financial results for a single fund share. The total returns in the table represent the rate that 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.
Year ended | ||||||||||||||||||||
Class A | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | |||||||||||||||
Net asset value, beginning of period | $10.36 | $10.70 | $10.67 | $10.27 | $10.96 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.35 | $0.36 | (c) | $0.34 | $0.33 | $0.35 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.15 | ) | (0.36 | ) | 0.01 | 0.38 | (0.70 | ) | ||||||||||||
Total from investment operations | $0.20 | $0.00 | (w) | $0.35 | $0.71 | $(0.35 | ) | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.33 | ) | $(0.34 | ) | $(0.32 | ) | $(0.31 | ) | $(0.34 | ) | ||||||||||
Net asset value, end of period (x) | $10.23 | $10.36 | $10.70 | $10.67 | $10.27 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 1.92 | (0.01 | )(c) | 3.32 | 7.01 | (3.15 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 0.98 | 0.96 | (c) | 0.95 | 0.94 | 0.94 | ||||||||||||||
Expenses after expense reductions (f) | 0.88 | 0.87 | (c) | 0.90 | 0.94 | 0.94 | ||||||||||||||
Net investment income (loss) | 3.32 | 3.42 | (c) | 3.17 | 3.12 | 3.42 | ||||||||||||||
Portfolio turnover | 18 | 11 | 14 | 18 | 26 | |||||||||||||||
Net assets at end of period (000 omitted) | $84,131 | $90,616 | $105,722 | $102,473 | $104,102 | |||||||||||||||
Year ended | ||||||||||||||||||||
Class B | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | |||||||||||||||
Net asset value, beginning of period | $10.35 | $10.69 | $10.66 | $10.26 | $10.95 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.27 | $0.28 | (c) | $0.26 | $0.25 | $0.28 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.15 | ) | (0.36 | ) | 0.01 | 0.38 | (0.71 | ) | ||||||||||||
Total from investment operations | $0.12 | $(0.08 | ) | $0.27 | $0.63 | $(0.43 | ) | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.25 | ) | $(0.26 | ) | $(0.24 | ) | $(0.23 | ) | $(0.26 | ) | ||||||||||
Net asset value, end of period (x) | $10.22 | $10.35 | $10.69 | $10.66 | $10.26 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 1.16 | (0.76 | )(c) | 2.56 | 6.21 | (3.88 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.73 | 1.71 | (c) | 1.70 | 1.69 | 1.69 | ||||||||||||||
Expenses after expense reductions (f) | 1.63 | 1.62 | (c) | 1.65 | 1.69 | 1.69 | ||||||||||||||
Net investment income (loss) | 2.57 | 2.67 | (c) | 2.42 | 2.37 | 2.68 | ||||||||||||||
Portfolio turnover | 18 | 11 | 14 | 18 | 26 | |||||||||||||||
Net assets at end of period (000 omitted) | $1,230 | $1,418 | $1,827 | $1,902 | $1,893 |
See Notes to Financial Statements
94
Table of Contents
Financial Highlights – continued
MFS TENNESSEE MUNICIPAL BOND FUND – continued
Year ended | ||||||||
Class I | 3/31/18 | 3/31/17 (i) | ||||||
Net asset value, beginning of period | $9.68 | $10.00 | ||||||
Income (loss) from investment operations | ||||||||
Net investment income (loss) (d) | $0.35 | $0.36 | (c) | |||||
Net realized and unrealized gain (loss) | (0.14 | ) | (0.34 | ) | ||||
Total from investment operations | $0.21 | $0.02 | ||||||
Less distributions declared to shareholders | ||||||||
From net investment income | $(0.33 | ) | $(0.34 | ) | ||||
Net asset value, end of period (x) | $9.56 | $9.68 | ||||||
Total return (%) (r)(s)(t)(x) | 2.18 | 0.19 | (c) | |||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||
Expenses before expense reductions (f) | 0.73 | 0.74 | (c) | |||||
Expenses after expense reductions (f) | 0.63 | 0.62 | (c) | |||||
Net investment income (loss) | 3.56 | 3.68 | (c) | |||||
Portfolio turnover | 18 | 11 | ||||||
Net assets at end of period (000 omitted) | $17,243 | $18,416 | ||||||
Year ended | ||||||||
Class R6 | 3/31/18 (i) | |||||||
Net asset value, beginning of period | $9.79 | |||||||
Income (loss) from investment operations | ||||||||
Net investment income (loss) (d) | $0.23 | |||||||
Net realized and unrealized gain (loss) | (0.25 | ) | ||||||
Total from investment operations | $(0.02 | ) | ||||||
Less distributions declared to shareholders | ||||||||
From net investment income | $(0.22 | ) | ||||||
Net asset value, end of period (x) | $9.55 | |||||||
Total return (%) (r)(s)(t)(x) | (0.19 | )(n) | ||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||
Expenses before expense reductions (f) | 0.69 | (a) | ||||||
Expenses after expense reductions (f) | 0.55 | (a) | ||||||
Net investment income (loss) | 3.65 | (a) | ||||||
Portfolio turnover | 18 | |||||||
Net assets at end of period (000 omitted) | $3,024 |
(a) | Annualized. |
(c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(i) | For the period from the class inception, April 1, 2016 (Class I) and August 1, 2017 (Class R6), through the stated period end. |
(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
95
Table of Contents
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 past 5 years (or life of a particular share class, if shorter). Certain information reflects financial results for a single fund share. The total returns in the table represent the rate that 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.
Year ended | ||||||||||||||||||||
Class A | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | |||||||||||||||
Net asset value, beginning of period | $11.10 | $11.51 | $11.44 | $11.05 | $11.69 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.38 | $0.41 | (c) | $0.40 | $0.39 | $0.40 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.14 | ) | (0.42 | ) | 0.04 | 0.37 | (0.64 | ) | ||||||||||||
Total from investment operations | $0.24 | $(0.01 | ) | $0.44 | $0.76 | $(0.24 | ) | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.36 | ) | $(0.40 | ) | $(0.37 | ) | $(0.37 | ) | $(0.40 | ) | ||||||||||
Net asset value, end of period (x) | $10.98 | $11.10 | $11.51 | $11.44 | $11.05 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 2.13 | (0.11 | )(c) | 3.95 | 6.97 | (2.02 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 0.92 | 0.91 | (c) | 0.89 | 0.88 | 0.89 | ||||||||||||||
Expenses after expense reductions (f) | 0.83 | 0.83 | (c) | 0.84 | 0.88 | 0.88 | ||||||||||||||
Net investment income (loss) | 3.36 | 3.60 | (c) | 3.52 | 3.48 | 3.65 | ||||||||||||||
Portfolio turnover | 15 | 13 | 9 | 20 | 24 | |||||||||||||||
Net assets at end of period (000 omitted) | $221,291 | $228,297 | $251,733 | $255,205 | $257,695 | |||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||
Ratios of expenses to average net assets after expense reductions and excluding interest expense and fees (f)(l) | 0.81 | 0.81 | (c) | 0.83 | 0.86 | 0.87 | ||||||||||||||
Year ended | ||||||||||||||||||||
Class B | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | |||||||||||||||
Net asset value, beginning of period | $11.10 | $11.50 | $11.44 | $11.05 | $11.68 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.29 | $0.32 | (c) | $0.31 | $0.31 | $0.32 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.14 | ) | (0.41 | ) | 0.04 | 0.37 | (0.64 | ) | ||||||||||||
Total from investment operations | $0.15 | $(0.09 | ) | $0.35 | $0.68 | $(0.32 | ) | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.27 | ) | $(0.31 | ) | $(0.29 | ) | $(0.29 | ) | $(0.31 | ) | ||||||||||
Net asset value, end of period (x) | $10.98 | $11.10 | $11.50 | $11.44 | $11.05 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 1.37 | (0.77 | )(c) | 3.09 | 6.18 | (2.67 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.67 | 1.66 | (c) | 1.65 | 1.63 | 1.64 | ||||||||||||||
Expenses after expense reductions (f) | 1.59 | 1.58 | (c) | 1.60 | 1.63 | 1.64 | ||||||||||||||
Net investment income (loss) | 2.61 | 2.82 | (c) | 2.76 | 2.73 | 2.90 | ||||||||||||||
Portfolio turnover | 15 | 13 | 9 | 20 | 24 | |||||||||||||||
Net assets at end of period (000 omitted) | $914 | $1,118 | $1,501 | $1,921 | $2,212 | |||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||
Ratios of expenses to average net assets after expense reductions and excluding interest expense and fees (f)(l) | 1.56 | 1.56 | (c) | 1.58 | 1.62 | 1.63 |
See Notes to Financial Statements
96
Table of Contents
Financial Highlights – continued
MFS VIRGINIA MUNICIPAL BOND FUND – continued
Year ended | ||||||||||||||||||||
Class C | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | |||||||||||||||
Net asset value, beginning of period | $11.10 | $11.51 | $11.44 | $11.05 | $11.68 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.29 | $0.32 | (c) | $0.31 | $0.31 | $0.32 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.14 | ) | (0.42 | ) | 0.05 | 0.37 | (0.64 | ) | ||||||||||||
Total from investment operations | $0.15 | $(0.10 | ) | $0.36 | $0.68 | $(0.32 | ) | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.27 | ) | $(0.31 | ) | $(0.29 | ) | $(0.29 | ) | $(0.31 | ) | ||||||||||
Net asset value, end of period (x) | $10.98 | $11.10 | $11.51 | $11.44 | $11.05 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 1.36 | (0.86 | )(c) | 3.18 | 6.17 | (2.67 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.67 | 1.66 | (c) | 1.65 | 1.63 | 1.64 | ||||||||||||||
Expenses after expense reductions (f) | 1.59 | 1.58 | (c) | 1.59 | 1.63 | 1.64 | ||||||||||||||
Net investment income (loss) | 2.61 | 2.85 | (c) | 2.77 | 2.73 | 2.90 | ||||||||||||||
Portfolio turnover | 15 | 13 | 9 | 20 | 24 | |||||||||||||||
Net assets at end of period (000 omitted) | $24,116 | $26,034 | $24,861 | $25,108 | $25,163 | |||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||
Ratios of expenses to average net assets after expense reductions and excluding interest expense and fees (f)(l) | 1.56 | 1.56 | (c) | 1.58 | 1.62 | 1.63 |
Year ended | ||||||||
Class I | 3/31/18 | 3/31/17 (i) | ||||||
Net asset value, beginning of period | $9.65 | $10.00 | ||||||
Income (loss) from investment operations | ||||||||
Net investment income (loss) (d) | $0.35 | $0.38 | (c) | |||||
Net realized and unrealized gain (loss) | (0.12 | ) | (0.36 | ) | ||||
Total from investment operations | $0.23 | $0.02 | ||||||
Less distributions declared to shareholders | ||||||||
From net investment income | $(0.33 | ) | $(0.37 | ) | ||||
Net asset value, end of period (x) | $9.55 | $9.65 | ||||||
Total return (%) (r)(s)(t)(x) | 2.42 | 0.21 | (c) | |||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||
Expenses before expense reductions (f) | 0.67 | 0.67 | (c) | |||||
Expenses after expense reductions (f) | 0.59 | 0.58 | (c) | |||||
Net investment income (loss) | 3.60 | 3.83 | (c) | |||||
Portfolio turnover | 15 | 13 | ||||||
Net assets at end of period (000 omitted) | $43,832 | $39,856 | ||||||
Supplemental Ratios (%): | ||||||||
Ratios of expenses to average net assets after expense reductions and excluding interest expense and fees (f)(l) | 0.56 | 0.56 | (c) |
See Notes to Financial Statements
97
Table of Contents
Financial Highlights – continued
MFS VIRGINIA MUNICIPAL BOND FUND – continued
Year ended | ||||
Class R6 | 3/31/18 (i) | |||
Net asset value, beginning of period | $9.77 | |||
Income (loss) from investment operations | ||||
Net investment income (loss) (d) | $0.23 | |||
Net realized and unrealized gain (loss) | (0.22 | ) | ||
Total from investment operations | $0.01 | |||
Less distributions declared to shareholders | ||||
From net investment income | $(0.23 | ) | ||
Net asset value, end of period (x) | $9.55 | |||
Total return (%) (r)(s)(t)(x) | 0.05 | (n) | ||
Ratios (%) (to average net assets) and Supplemental data: | ||||
Expenses before expense reductions (f) | 0.60 | (a) | ||
Expenses after expense reductions (f) | 0.51 | (a) | ||
Net investment income (loss) | 3.61 | (a) | ||
Portfolio turnover | 15 | |||
Net assets at end of period (000 omitted) | $6,196 | |||
Supplemental Ratios (%): | ||||
Ratios of expenses to average net assets after expense reductions and excluding interest expense and fees (f)(l) | 0.48 | (a) |
(a) | Annualized. |
(c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(i) | For the period from the class inception, April 1, 2016 (Class I) and August 1, 2017 (Class R6), 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
98
Table of Contents
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 past 5 years (or life of a particular share class, if shorter). Certain information reflects financial results for a single fund share. The total returns in the table represent the rate that 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.
Year ended | ||||||||||||||||||||
Class A | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | |||||||||||||||
Net asset value, beginning of period | $11.01 | $11.37 | $11.36 | $10.93 | $11.60 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.37 | $0.38 | (c) | $0.38 | $0.38 | $0.39 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.13 | ) | (0.38 | ) | (0.02 | ) | 0.40 | (0.69 | ) | |||||||||||
Total from investment operations | $0.24 | $0.00 | (w) | $0.36 | $0.78 | $(0.30 | ) | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.36 | ) | $(0.36 | ) | $(0.35 | ) | $(0.35 | ) | $(0.37 | ) | ||||||||||
Net asset value, end of period (x) | $10.89 | $11.01 | $11.37 | $11.36 | $10.93 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 2.15 | 0.02 | (c) | 3.23 | 7.18 | (2.54 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 0.97 | 0.95 | (c) | 0.94 | 0.93 | 0.93 | ||||||||||||||
Expenses after expense reductions (f) | 0.86 | 0.86 | (c) | 0.88 | 0.90 | 0.90 | ||||||||||||||
Net investment income (loss) | 3.34 | 3.38 | (c) | 3.34 | 3.34 | 3.58 | ||||||||||||||
Portfolio turnover | 11 | 18 | 9 | 22 | 17 | |||||||||||||||
Net assets at end of period (000 omitted) | $101,013 | $111,179 | $121,455 | $121,680 | $119,721 | |||||||||||||||
Year ended | ||||||||||||||||||||
Class B | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | |||||||||||||||
Net asset value, beginning of period | $11.00 | $11.37 | $11.35 | $10.93 | $11.59 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.29 | $0.30 | (c) | $0.29 | $0.29 | $0.31 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.14 | ) | (0.39 | ) | (0.01 | ) | 0.39 | (0.68 | ) | |||||||||||
Total from investment operations | $0.15 | $(0.09 | ) | $0.28 | $0.68 | $(0.37 | ) | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.27 | ) | $(0.28 | ) | $(0.26 | ) | $(0.26 | ) | $(0.29 | ) | ||||||||||
Net asset value, end of period (x) | $10.88 | $11.00 | $11.37 | $11.35 | $10.93 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 1.38 | (0.81 | )(c) | 2.56 | 6.29 | (3.18 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.72 | 1.70 | (c) | 1.69 | 1.68 | 1.68 | ||||||||||||||
Expenses after expense reductions (f) | 1.62 | 1.62 | (c) | 1.63 | 1.65 | 1.65 | ||||||||||||||
Net investment income (loss) | 2.58 | 2.63 | (c) | 2.59 | 2.59 | 2.83 | ||||||||||||||
Portfolio turnover | 11 | 18 | 9 | 22 | 17 | |||||||||||||||
Net assets at end of period (000 omitted) | $613 | $866 | $1,062 | $1,209 | $1,291 |
See Notes to Financial Statements
99
Table of Contents
Financial Highlights – continued
MFS WEST VIRGINIA MUNICIPAL BOND FUND – continued
Year ended | ||||||||
Class I | 3/31/18 | 3/31/17 (i) | ||||||
Net asset value, beginning of period | $9.69 | $10.00 | ||||||
Income (loss) from investment operations | ||||||||
Net investment income (loss) (d) | $0.35 | $0.35 | (c) | |||||
Net realized and unrealized gain (loss) | (0.12 | ) | (0.31 | ) | ||||
Total from investment operations | $0.23 | $0.04 | ||||||
Less distributions declared to shareholders | ||||||||
From net investment income | $(0.34 | ) | $(0.35 | ) | ||||
Net asset value, end of period (x) | $9.58 | $9.69 | ||||||
Total return (%) (r)(s)(t)(x) | 2.33 | 0.37 | (c) | |||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||
Expenses before expense reductions (f) | 0.72 | 0.72 | (c) | |||||
Expenses after expense reductions (f) | 0.62 | 0.61 | (c) | |||||
Net investment income (loss) | 3.58 | 3.63 | (c) | |||||
Portfolio turnover | 11 | 18 | ||||||
Net assets at end of period (000 omitted) | $7,038 | $4,820 |
Year ended | ||||
Class R6 | 3/31/18 (i) | |||
Net asset value, beginning of period | $9.79 | |||
Income (loss) from investment operations | ||||
Net investment income (loss) (d) | $0.24 | |||
Net realized and unrealized gain (loss) | (0.22 | ) | ||
Total from investment operations | $0.02 | |||
Less distributions declared to shareholders | ||||
From net investment income | $(0.23 | ) | ||
Net asset value, end of period (x) | $9.58 | |||
Total return (%) (r)(s)(t)(x) | 0.18 | (n) | ||
Ratios (%) (to average net assets) and Supplemental data: | ||||
Expenses before expense reductions (f) | 0.65 | (a) | ||
Expenses after expense reductions (f) | 0.54 | (a) | ||
Net investment income (loss) | 3.67 | (a) | ||
Portfolio turnover | 11 | |||
Net assets at end of period (000 omitted) | $130 |
(a) | Annualized. |
(c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(i) | For the period from the class inception, April 1, 2016 (Class I) and August 1, 2017 (Class R6), through the stated period end. |
(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
100
Table of Contents
(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.
Each 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 each fund’s Statement of Assets and Liabilities through the date that the financial statements were issued. Each fund invests primarily in municipal instruments which generally trade in the over-the-counter market. The value of municipal instruments can be affected by changes in their actual or perceived credit quality. The credit quality of, and the ability to pay principal and interest when due by, an issuer of a municipal instrument depends on the credit quality of the entity supporting the municipal instrument, how essential any services supported by the municipal instrument are, the sufficiency of any revenues or taxes that support the municipal instrument, and/or the willingness or ability of the appropriate government entity to approve any appropriations necessary to support the municipal instrument. Many municipal instruments are supported by insurance which typically guarantees the timely payment of all principal and interest due on the underlying municipal instrument. The value of a municipal instrument can be volatile and significantly affected by adverse tax changes or court rulings, legislative or political changes, changes in specific or general market and economic conditions in the region where the instrument is issued, and the financial condition of municipal issuers and of municipal instrument insurers of which there are a limited number. Also, because many municipal instruments are issued to finance similar projects, conditions in certain industries can significantly affect the funds and the overall municipal market. If the Internal Revenue Service determines an issuer of a municipal instrument has not complied with the applicable tax requirements, interest from the security could become taxable, the security could decline in value, and distributions made by the funds could be taxable to shareholders.
In March 2017, the FASB issued Accounting Standards Update 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20) – Premium Amortization on Purchased Callable Debt Securities (“ASU 2017-08”). For entities that hold callable debt securities at a premium, ASU 2017-08 requires that the premium be amortized to the earliest call date. ASU 2017-08 will be effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Management has evaluated the potential impacts of ASU 2017-08 and believes that adoption of ASU 2017-08 will not have a material effect on each fund’s overall financial position or its overall results of operations.
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, or similar 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 on their primary exchange as provided by a third-party pricing service. Futures contracts for which there were no trades that day for a particular position are generally valued at the closing bid quotation on their primary exchange as provided by a third-party pricing service. 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.
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The Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of each fund’s investments (including any fair valuation) to the adviser pursuant to valuation policies and procedures approved by the Board. If the adviser determines that reliable market quotations are not readily available, investments are valued at fair value as determined in good faith by the adviser in accordance with such procedures under the oversight of the Board of Trustees. Under each fund’s valuation policies and procedures, market quotations are not considered to be readily available for most types of debt instruments and floating rate loans and many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services. In addition, investments may be valued at fair value if the adviser determines that an investment’s value has been materially affected by events occurring after the close of the exchange or market on which the investment is principally traded (such as foreign exchange or market) and prior to the determination of each fund’s net asset value, or after the halting of trading of a specific security where trading does not resume prior to the close of the exchange or market on which the security is principally traded. The adviser generally relies on third-party pricing services or other information (such as the correlation with price movements of similar securities in the same or other markets; the type, cost and investment characteristics of the security; the business and financial condition of the issuer; and trading and other market data) to assist in determining whether to fair value and at what value to fair value an investment. The value of an investment for purposes of calculating each fund’s net asset value can differ depending on the source and method used to determine value. When fair valuation is used, the value of an investment used to determine each fund’s net asset value may differ from quoted or published prices for the same investment. There can be no assurance that each fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which each fund determines its net asset value per share.
Various inputs are used in determining the value of each fund’s assets or liabilities. These inputs are categorized into three broad levels. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Each fund’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes unobservable inputs, which may include the adviser’s own assumptions in determining the fair value of investments. The following is a summary of the levels used as of March 31, 2018 in valuing each fund’s assets or liabilities:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Mississippi Fund | ||||||||||||||||
Financial Instruments | ||||||||||||||||
Municipal Bonds | $— | $88,783,743 | $— | $88,783,743 | ||||||||||||
Mutual Funds | 179,635 | — | — | 179,635 | ||||||||||||
Total | $179,635 | $88,783,743 | $— | $88,963,378 | ||||||||||||
New York Fund | ||||||||||||||||
Financial Instruments | ||||||||||||||||
Municipal Bonds | $— | $226,601,285 | $— | $226,601,285 | ||||||||||||
Mutual Funds | 420,700 | — | — | 420,700 | ||||||||||||
Total | $420,700 | $226,601,285 | $— | $227,021,985 | ||||||||||||
North Carolina Fund | ||||||||||||||||
Financial Instruments | ||||||||||||||||
Municipal Bonds | $— | $388,718,025 | $— | $388,718,025 | ||||||||||||
Mutual Funds | 5,282,358 | — | — | 5,282,358 | ||||||||||||
Total | $5,282,358 | $388,718,025 | $— | $394,000,383 | ||||||||||||
Pennsylvania Fund | ||||||||||||||||
Financial Instruments | ||||||||||||||||
Municipal Bonds | $— | $124,961,783 | $— | $124,961,783 | ||||||||||||
Mutual Funds | 148,980 | — | — | 148,980 | ||||||||||||
Total | $148,980 | $124,961,783 | $— | $125,110,763 | ||||||||||||
South Carolina Fund | ||||||||||||||||
Financial Instruments | ||||||||||||||||
Municipal Bonds | $— | $180,504,029 | $— | $180,504,029 | ||||||||||||
Mutual Funds | 3,567,792 | — | — | 3,567,792 | ||||||||||||
Total | $3,567,792 | $180,504,029 | $— | $184,071,821 |
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Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Tennessee Fund | ||||||||||||||||
Financial Instruments | ||||||||||||||||
Municipal Bonds | $— | $104,099,584 | $— | $104,099,584 | ||||||||||||
Mutual Funds | 314,746 | — | — | 314,746 | ||||||||||||
Total | $314,746 | $104,099,584 | $— | $104,414,330 | ||||||||||||
Virginia Fund | ||||||||||||||||
Financial Instruments | ||||||||||||||||
Municipal Bonds | $— | $294,662,447 | $— | $294,662,447 | ||||||||||||
Mutual Funds | 2,016,404 | — | — | 2,016,404 | ||||||||||||
Total | $2,016,404 | $294,662,447 | $— | $296,678,851 | ||||||||||||
West Virginia Fund | ||||||||||||||||
Financial Instruments | ||||||||||||||||
Municipal Bonds | $— | $105,218,266 | $— | $105,218,266 | ||||||||||||
Mutual Funds | 158,202 | — | — | 158,202 | ||||||||||||
Total | $158,202 | $105,218,266 | $— | $105,376,468 |
For further information regarding security characteristics, see the Portfolio of Investments.
Derivatives – Certain funds 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 funds during the period were futures contracts. Depending on the type of derivative, the fund may exit a derivative position by entering into an offsetting transaction with a counterparty or exchange, negotiating an agreement with the derivative counterparty, or novating the position to a third party. The funds may be unable to promptly close out a futures position in instances where the daily fluctuation in the price for that type of future exceeds the daily limit set by the exchange. At March 31, 2018, the funds 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 funds for the year ended March 31, 2018 as reported in the Statements of Operations:
Fund | Risk | Futures Contracts | ||
New York Fund | Interest Rate | $111,794 | ||
Pennsylvania Fund | Interest Rate | 63,882 | ||
South Carolina Fund | Interest Rate | 99,816 |
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, 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 specified 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 agreement 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. For cleared derivatives (e.g., futures contracts, cleared swaps, and exchange-traded options), margin requirements are set by the clearing broker and the clearing house and collateral, in the form of cash or securities, is posted by the fund directly with the clearing broker. Collateral terms are counterparty agreement specific for uncleared derivatives (e.g., forward foreign currency exchange contracts, uncleared swap agreements, and uncleared options) and collateral, in the form of cash and securities, is held in segregated accounts with the fund’s custodian in connection with these agreements. 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 counterparty-specific agreement and one amount is posted from one party to the other to collateralize such obligations. Cash that has been segregated or delivered 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 for uncleared derivatives and/or deposits with brokers for cleared derivatives. Securities pledged as collateral or margin
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for the same purpose, if any, are noted in the Portfolio of Investments. The funds may be required to make payments of interest on uncovered collateral or margin obligations with the broker. Any such payments are included in “Miscellaneous” expense in the Statements of Operations.
Futures Contracts – Certain funds 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 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 the Virginia Fund utilizing the fund’s municipal bonds which have already been issued (known as self-deposited 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 self-deposited secondary market inverse floating rate security is created when the Virginia Fund 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 trust or another party for redemption at par plus accrued interest), and (b) issue inverse floating rate certificates (sometimes referred to as “inverse floaters”) which are held by the Virginia Fund. 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 its 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 Virginia Fund’s payable to the holders of the floating rate certificates from trust assets as reported in the Virginia 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 March 31, 2018, the Virginia Fund’s payable to the holders of the floating rate certificates from trust assets was $5,008,745 and the weighted average interest rate on the floating rate certificates issued by the trust was 1.61%. For the year ended March 31, 2018, the average payable to the holders of the floating rate certificates from trust assets was $5,009,485 at a weighted average interest rate of 1.05%. Interest expense and fees relate to interest payments made to the holders of certain floating rate certificates and associated fees, both of which are made from trust assets. Interest expense and fees are recorded as incurred. For the year ended March 31, 2018, interest expense and fees related to self-deposited inverse floaters amounted to $82,634 and are 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 each fund that have not yet occurred.
Investment Transactions and Income – Investment transactions are recorded on the trade date. Interest income is recorded on the accrual basis. All premium and discount is amortized or accreted for financial statement purposes in accordance with U.S. generally accepted accounting principles. Interest payments received in additional securities are recorded on the ex-interest date in an amount equal to the value of the security on such date. Debt obligations may be placed on non-accrual status or set to accrue at a rate of interest less than the contractual coupon when the collection of all or a portion of interest has become doubtful. Interest income for those debt obligations may be further reduced by the write-off of the related interest receivables when deemed uncollectible.
Each fund may receive proceeds from litigation settlements. Any proceeds received from litigation involving portfolio holdings are reflected in the Statements of Operations in realized gain/loss if the security has been disposed of by the fund or in unrealized gain/loss if the security is still held by the fund. Any other proceeds from litigation not related to portfolio holdings are reflected as other income in the Statements of Operations.
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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 year ended March 31, 2018, is shown as a reduction of total expenses in the Statements of Operations.
Tax Matters and Distributions – Each fund intends to qualify as a regulated investment company, as defined under Subchapter M of the Internal Revenue Code, and to distribute all of its taxable and tax-exempt income, including realized capital gains. As a result, no provision for federal income tax is required. Each fund’s federal tax returns, when filed, will remain subject to examination by the Internal Revenue Service for a three year period. Management has analyzed each fund’s tax positions taken on federal and state tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
Distributions to shareholders are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. Certain capital accounts in the financial statements are periodically adjusted for permanent differences in order to reflect their tax character. These adjustments have no impact on net assets or net asset value per share. Temporary differences which arise from recognizing certain items of income, expense, gain or loss in different periods for financial statement and tax purposes will reverse at some time in the future. Distributions in excess of net investment income or net realized gains are temporary overdistributions for financial statement purposes resulting from differences in the recognition or classification of income or distributions for financial statement and tax purposes.
Book/tax differences primarily relate to expiration of capital loss carryforwards, amortization and accretion of debt securities, and secured borrowings, as applicable to each fund.
The tax character of distributions declared to shareholders for the last two fiscal years is as follows:
Year ended 3/31/18 | 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) | $186,742 | $360,000 | $410,990 | $15,000 | $80,000 | $14,600 | $154,131 | $64,099 | ||||||||||||||||||||||||
Tax-exempt income | 2,718,721 | 7,046,413 | 11,394,596 | 4,528,541 | 5,665,985 | 3,514,123 | 9,366,693 | 3,618,158 | ||||||||||||||||||||||||
Total distributions | $2,905,463 | $7,406,413 | $11,805,586 | $4,543,541 | $5,745,985 | $3,528,723 | $9,520,824 | $3,682,257 | ||||||||||||||||||||||||
Year ended 3/31/17 | 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) | $5,440 | $274,121 | $— | $114,944 | $114,332 | $183,288 | $934,637 | $103,712 | ||||||||||||||||||||||||
Tax-exempt income | 3,088,095 | 6,968,139 | 11,962,987 | 4,290,001 | 5,591,389 | 3,432,363 | 9,194,581 | 3,802,450 | ||||||||||||||||||||||||
Total distributions | $3,093,535 | $7,242,260 | $11,962,987 | $4,404,945 | $5,705,721 | $3,615,651 | $10,129,218 | $3,906,162 |
The federal tax cost and the tax basis components of distributable earnings were as follows:
As of 3/31/18 | Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | ||||||||||||
Cost of investments | $85,939,349 | $219,529,192 | $381,807,616 | $119,895,052 | ||||||||||||
Gross appreciation | 3,554,506 | 8,898,669 | 14,637,945 | 5,554,668 | ||||||||||||
Gross depreciation | (530,477 | ) | (1,405,876 | ) | (2,445,178 | ) | (338,957 | ) | ||||||||
Net unrealized appreciation (depreciation) | $3,024,029 | $7,492,793 | $12,192,767 | $5,215,711 | ||||||||||||
Undistributed ordinary income | 28,290 | 101,953 | 43,839 | 38,118 | ||||||||||||
Undistributed tax-exempt income | 274,809 | 512,905 | 1,079,264 | 345,461 | ||||||||||||
Capital loss carryforwards | (2,921,070 | ) | (4,892,246 | ) | (11,691,090 | ) | (4,047,654 | ) | ||||||||
Other temporary differences | (242,195 | ) | (623,820 | ) | (1,030,191 | ) | (373,857 | ) |
As of 3/31/18 | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | ||||||||||||
Cost of investments | $179,074,191 | $101,614,748 | $284,248,383 | $101,642,791 | ||||||||||||
Gross appreciation | 6,293,021 | 3,658,641 | 10,804,615 | 4,107,449 | ||||||||||||
Gross depreciation | (1,295,391 | ) | (859,059 | ) | (3,382,892 | ) | (373,772 | ) | ||||||||
Net unrealized appreciation (depreciation) | $4,997,630 | $2,799,582 | $7,421,723 | $3,733,677 | ||||||||||||
Undistributed ordinary income | 31,004 | — | 147,719 | 33,726 | ||||||||||||
Undistributed tax-exempt income | 443,756 | 764,666 | 543,754 | 255,196 | ||||||||||||
Capital loss carryforwards | (6,986,252 | ) | (3,540,729 | ) | (9,113,766 | ) | (4,686,274 | ) | ||||||||
Other temporary differences | (491,315 | ) | (288,863 | ) | (784,013 | ) | (299,953 | ) |
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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, 2018, 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 Fund | Tennessee Fund | Virginia Fund | |||||||||||||||||||||||||||
3/31/19 | $(1,676,455 | ) | $(847,239 | ) | $(825,001 | ) | $(57,345 | ) | $(203,621 | ) | ||||||||||||||||||||||
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 | $(998,015 | ) | $(3,215,791 | ) | $(9,680,308 | ) | $(2,738,626 | ) | $(3,766,162 | ) | $(2,118,137 | ) | $(4,036,901 | ) | $(1,567,234 | ) | ||||||||||||||||
Long-Term | (1,923,055 | ) | — | (2,010,782 | ) | (461,789 | ) | (2,395,089 | ) | (1,365,247 | ) | (4,873,244 | ) | (3,119,040 | ) | |||||||||||||||||
Total | $(2,921,070 | ) | $(3,215,791 | ) | $(11,691,090 | ) | $(3,200,415 | ) | $(6,161,251 | ) | $(3,483,384 | ) | $(8,910,145 | ) | $(4,686,274 | ) |
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. Effective April 23, 2018, Class C shares will convert to Class A shares approximately ten 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:
From net investment income
Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | |||||||||||||||||||||||||||||
Year Ended 3/31/18 (i) | Year Ended 3/31/17 | Year Ended 3/31/18 (i) | Year Ended 3/31/17 | Year Ended 3/31/18 (i) | Year Ended 3/31/17 | Year Ended 3/31/18 (i) | Year Ended 3/31/17 | |||||||||||||||||||||||||
Class A | $2,701,194 | $2,975,457 | $4,604,891 | $4,717,298 | $8,722,679 | $9,413,602 | $3,632,060 | $3,928,284 | ||||||||||||||||||||||||
Class B | 28,419 | 35,832 | 119,810 | 157,879 | 69,607 | 101,361 | 122,444 | 147,142 | ||||||||||||||||||||||||
Class C | — | — | 660,221 | 759,066 | 1,386,624 | 1,582,402 | — | — | ||||||||||||||||||||||||
Class I | 172,289 | 82,246 | 2,013,979 | 1,608,017 | 1,558,284 | 865,622 | 781,408 | 329,519 | ||||||||||||||||||||||||
Class R6 | 3,561 | — | 7,512 | — | 68,392 | — | 7,629 | — | ||||||||||||||||||||||||
Total | $2,905,463 | $3,093,535 | $7,406,413 | $7,242,260 | $11,805,586 | $11,962,987 | $4,543,541 | $4,404,945 |
South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | |||||||||||||||||||||||||||||
Year Ended 3/31/18 (i) | Year Ended 3/31/17 | Year Ended 3/31/18 (i) | Year Ended 3/31/17 | Year Ended 3/31/18 (i) | Year Ended 3/31/17 | Year Ended 3/31/18 (i) | Year Ended 3/31/17 | |||||||||||||||||||||||||
Class A | $5,172,009 | $5,357,928 | $2,820,780 | $3,330,694 | $7,354,843 | $8,628,553 | $3,458,353 | $3,789,506 | ||||||||||||||||||||||||
Class B | 73,347 | 94,751 | 32,250 | 38,675 | 25,360 | 33,286 | 17,407 | 24,539 | ||||||||||||||||||||||||
Class C | — | — | — | — | 626,501 | 731,059 | — | — | ||||||||||||||||||||||||
Class I | 486,289 | 253,042 | 658,941 | 246,282 | 1,483,943 | 736,320 | 204,899 | 92,117 | ||||||||||||||||||||||||
Class R6 | 14,340 | — | 16,752 | — | 30,177 | — | 1,598 | — | ||||||||||||||||||||||||
Total | $5,745,985 | $5,705,721 | $3,528,723 | $3,615,651 | $9,520,824 | $10,129,218 | $3,682,257 | $3,906,162 |
(i) | For the period from the inception of Class R6, August 1, 2017, through the stated period end. |
(3) | Transactions with Affiliates |
Investment Adviser – Each fund has an investment advisory agreement with MFS to provide overall investment management and related administrative services and facilities to each fund. The management fee is computed daily and paid monthly at an annual rate of 0.45% of each fund’s average daily net assets.
MFS has agreed in writing to reduce its management fee by a specified amount if certain MFS mutual fund assets exceed thresholds agreed to by MFS and the funds’ Board of Trustees. For the year ended March 31, 2018, 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 | |||||||
$7,575 | $18,383 | $31,515 | $10,434 | $15,616 | $9,169 | $25,022 | $9,472 |
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The management fee incurred for the year ended March 31, 2018 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 (including interest expense and fees associated with investments in inverse floating rate instruments), such that total fund operating expenses do not exceed the following rates annually of these funds’ average daily net assets:
New York Fund | North Carolina Fund | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | |||||||||||||||||||
Class A | 0.90% | 0.93% | 0.84% | 0.88% | 0.81% | 0.87% | ||||||||||||||||||
Class B | 1.65% | 1.68% | 1.59% | 1.63% | 1.56% | 1.62% | ||||||||||||||||||
Class C | 1.65% | 1.68% | N/A | N/A | 1.56% | N/A | ||||||||||||||||||
Class I | 0.65% | 0.68% | 0.59% | 0.63% | 0.56% | 0.62% | ||||||||||||||||||
Class R6 | 0.60% | 0.61% | 0.53% | 0.56% | 0.49% | 0.55% |
These written agreements will continue until modified by the funds’ Board of Trustees, but such agreements will continue at least until July 31, 2018. For the year ended March 31, 2018, the New York Fund and the North Carolina Fund’s actual operating expenses did not exceed the limits described above and therefore, the investment adviser did not pay any portion of each fund’s expenses related to each agreement. For the year ended March 31, 2018, these reductions amounted to the following for the South Carolina Fund, the Tennessee Fund, the Virginia Fund, and the West Virginia Fund and are included in the reduction of total expenses in the Statements of Operations:
South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | |||
$107,617 | $98,354 | $217,749 | $108,261 |
Distributor – MFS Fund Distributors, Inc. (MFD), a wholly-owned subsidiary of MFS, as distributor, received the following amounts for the year ended March 31, 2018, 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 | |||||||
$6,098 | $11,003 | $27,786 | $8,480 | $15,809 | $4,728 | $14,009 | $3,596 |
The Board of Trustees has adopted a distribution plan for certain share classes pursuant to Rule 12b-1 of the Investment Company Act of 1940.
Each fund’s distribution plan provides that each fund will pay MFD for services provided by MFD and financial intermediaries in connection with the distribution and servicing of certain share classes. One component of the plan is a distribution fee paid to MFD and another component of the plan is a service fee paid to MFD. MFD may subsequently pay all, or a portion, of the distribution and/or service fees to financial intermediaries.
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Distribution Plan Fee Table:
Class A | ||||||||||||||||||||
Distribution Fee Rate (d) | Service Fee Rate (d) | Total Distribution Plan (d) | Annual Effective Rate (e) | Distribution and Service Fee | ||||||||||||||||
Mississippi Fund | — | 0.25% | 0.25% | 0.10% | $211,442 | |||||||||||||||
New York Fund | — | 0.25% | 0.25% | 0.24% | 339,438 | |||||||||||||||
North Carolina Fund | — | 0.25% | 0.25% | 0.24% | 679,920 | |||||||||||||||
Pennsylvania Fund | — | 0.25% | 0.25% | 0.10% | 250,011 | |||||||||||||||
South Carolina Fund | — | 0.25% | 0.25% | 0.25% | 423,593 | |||||||||||||||
Tennessee Fund | — | 0.25% | 0.25% | 0.25% | 222,801 | |||||||||||||||
Virginia Fund | — | 0.25% | 0.25% | 0.25% | 575,144 | |||||||||||||||
West Virginia Fund | — | 0.25% | 0.25% | 0.24% | 268,358 | |||||||||||||||
Class B | ||||||||||||||||||||
Distribution Fee Rate (d) | Service Fee Rate (d) | Total Distribution Plan (d) | Annual Effective Rate (e) | Distribution and Service Fee | ||||||||||||||||
Mississippi Fund | 0.75% | 0.25% | 1.00% | 0.76% | $11,226 | |||||||||||||||
New York Fund | 0.75% | 0.25% | 1.00% | 1.00% | 44,885 | |||||||||||||||
North Carolina Fund | 0.75% | 0.25% | 1.00% | 1.00% | 28,244 | |||||||||||||||
Pennsylvania Fund | 0.75% | 0.25% | 1.00% | 0.85% | 42,537 | |||||||||||||||
South Carolina Fund | 0.75% | 0.25% | 1.00% | 1.00% | 31,824 | |||||||||||||||
Tennessee Fund | 0.75% | 0.25% | 1.00% | 1.00% | 13,340 | |||||||||||||||
Virginia Fund | 0.75% | 0.25% | 1.00% | 1.00% | 10,362 | |||||||||||||||
West Virginia Fund | 0.75% | 0.25% | 1.00% | 1.00% | 7,067 | |||||||||||||||
Class C | ||||||||||||||||||||
Distribution Fee Rate (d) | Service Fee Rate (d) | Total Distribution Plan (d) | Annual Effective Rate (e) | Distribution and Service Fee | ||||||||||||||||
New York Fund | 0.75% | 0.25% | 1.00% | 1.00% | $248,635 | |||||||||||||||
North Carolina Fund | 0.75% | 0.25% | 1.00% | 1.00% | 564,708 | |||||||||||||||
Virginia Fund | 0.75% | 0.25% | 1.00% | 1.00% | 256,517 |
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 | $222,668 | $632,958 | $1,272,872 | $292,548 | $455,417 | $236,141 | $842,023 | $275,425 |
(d) | In accordance with the distribution plan for certain classes, each fund pays distribution and/or service fees equal to these annual percentage rates of each class’s average daily net assets. The distribution and service fee rates disclosed by class represent the current rates in effect at the end of the reporting period. Any rate changes, if applicable, are detailed below. |
(e) | The annual effective rates represent actual fees incurred under the distribution plan for the year ended March 31, 2018 based on each class’s average daily net assets. MFD has voluntarily agreed to rebate a portion of each class’s 0.25% service fee attributable to accounts for which MFD retains the 0.25% service fee except for accounts attributable to MFS or its affiliates’ seed money. For the year ended March 31, 2018, 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 | $3,999 | $8,295 | $21,698 | $457 | $7,134 | $596 | $10,847 | $12,462 | ||||||||||||||||||||||||
Class B | — | — | — | — | — | — | 2 | — | ||||||||||||||||||||||||
Class C | N/A | — | — | N/A | N/A | N/A | 31 | 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, 2018. For the year ended March 31, 2018, this reduction amounted to $126,866 and is included in the reduction of total expenses in the Statements of Operations. Prior to July 28, 2017, the service fee rate attributable to Class B shares within the first year of purchase was 0.25% and the service fee rate attributable to all other Class B shares was reduced by MFD to 0.00% under a written agreement that terminated on July 27, 2017. For the period April 1, 2017 through July 27, 2017, this reduction amounted to $857 and is included in the reduction of total expenses in the Statements of Operations. Effective July 28, 2017, MFD has agreed in writing to reduce the Class B service fee rate to 0.00% for all 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, 2018. For the period July 28, 2017 through March 31, 2018, this reduction amounted to $1,865 and is included in the reduction of total expenses in the Statements of Operations. |
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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, 2018. For the year ended March 31, 2018, this reduction amounted to $150,007 and is included in the reduction of total expenses in the Statements of Operations. Prior to July 28, 2017, the service fee rate attributable to Class B shares within the first year of purchase was 0.25% and the service fee rate attributable to all other Class B shares was reduced by MFD to 0.10% under a written agreement that terminated on July 27, 2017. For the period April 1, 2017 through July 27, 2017, this reduction amounted to $2,112 and is included in the reduction of total expenses in the Statements of Operations. Effective July 28, 2017, MFD has agreed in writing to reduce the Class B service fee rate to 0.10% for all 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, 2018. For the period July 28, 2017 through March 31, 2018, this reduction amounted to $4,171 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 year ended March 31, 2018, 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 | $1,908 | $1,789 | $3,299 | $12,600 | $196 | $344 | $2,474 | $— | ||||||||||||||||||||||||
Class B | 191 | 8,822 | 405 | 4,544 | 2,949 | 472 | 122 | 95 | ||||||||||||||||||||||||
Class C | N/A | 2,691 | 4,467 | N/A | N/A | N/A | 2,782 | N/A |
Shareholder Servicing Agent – MFS Service Center, Inc. (MFSC), a wholly-owned subsidiary of MFS, receives a fee from each fund for its services as shareholder servicing agent calculated as a percentage of the average daily net assets of each fund as determined periodically under the supervision of the funds’ Board of Trustees. For the year ended March 31, 2018, 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 | $4,665 | $20,368 | $24,961 | $15,846 | $11,095 | $5,713 | $28,752 | $6,702 | ||||||||||||||||||||||||
Percentage of average daily net assets | 0.0051% | 0.0092% | 0.0066% | 0.0126% | 0.0059% | 0.0052% | 0.0096% | 0.0059% |
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. Class R6 shares do not incur sub-accounting fees. For the year ended March 31, 2018, 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 | |||||||
$58,697 | $132,300 | $300,912 | $88,534 | $132,807 | $89,827 | $241,765 | $98,036 |
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 year ended March 31, 2018 was equivalent to the following annual effective rates 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 | |||||||||||||||||||||||||
Percentage of average daily net assets | 0.0262% | 0.0200% | 0.0181% | 0.0233% | 0.0208% | 0.0244% | 0.0188% | 0.0241% |
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 year ended March 31, 2018 and were as follows:
Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | |||||||
$416 | $386 | $785 | $418 | $759 | $389 | $781 | $759 |
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The liability for deferred retirement benefits payable to certain independent Trustees under the DB plan amounted to the following at March 31, 2018, 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 | |||||||
$1,438 | $1,854 | $3,871 | $1,431 | $3,917 | $1,844 | $3,896 | $3,916 |
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 year ended March 31, 2018, the fee paid by each fund under this agreement amounted to the following and is 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 | |||||||
$157 | $362 | $649 | $219 | $329 | $198 | $529 | $195 |
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. This money market fund does not pay a management fee to MFS.
On June 29, 2016, MFS redeemed the following fund shares:
Fund | Class | Shares | Amount | |||||||||
Mississippi Fund | Class I | 5,026 | $51,164 | |||||||||
New York Fund | Class I | 5,030 | 51,305 | |||||||||
North Carolina Fund | Class I | 5,030 | 51,100 | |||||||||
Pennsylvania Fund | Class I | 5,028 | 51,290 | |||||||||
South Carolina Fund | Class I | 5,029 | 51,097 | |||||||||
Tennessee Fund | Class I | 5,025 | 51,104 | |||||||||
Virginia Fund | Class I | 5,029 | 50,944 | |||||||||
West Virginia Fund | Class I | 5,028 | 51,034 |
On July 31, 2017, MFS purchased the following fund shares as an initial investment in the class:
Fund | Class | Shares | Amount | |||||||||
Mississippi Fund | Class R6 | 5,123 | $50,000 | |||||||||
New York Fund | Class R6 | 5,086 | 50,000 | |||||||||
North Carolina Fund | Class R6 | 5,112 | 50,000 | |||||||||
Pennsylvania Fund | Class R6 | 5,081 | 50,000 | |||||||||
South Carolina Fund | Class R6 | 5,107 | 50,000 | |||||||||
Tennessee Fund | Class R6 | 5,107 | 50,000 | |||||||||
Virginia Fund | Class R6 | 5,118 | 50,000 | |||||||||
West Virginia Fund | Class R6 | 5,107 | 50,000 |
(4) | Portfolio Securities |
For the year ended March 31, 2018, 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 | $11,301,349 | $75,962,869 | $82,020,686 | $24,259,590 | $29,280,944 | $19,398,103 | $51,401,351 | $12,477,743 | ||||||||||||||||||||||||
Sales | $9,690,649 | $50,066,804 | $44,076,765 | $19,132,679 | $27,724,191 | $21,627,141 | $45,620,862 | $19,957,340 |
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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:
Mississippi Fund | New York Fund | |||||||||||||||||||||||||||||||
Year ended 3/31/18 (i) | Year ended 3/31/17 | Year ended 3/31/18 (i) | Year ended 3/31/17 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | ||||||||||||||||||||||||||||||||
Class A | 990,031 | $9,596,384 | 1,085,024 | $10,826,689 | 3,443,760 | $38,075,332 | 1,967,807 | $22,056,725 | ||||||||||||||||||||||||
Class B | 301 | 2,921 | 8,160 | 81,593 | 24,373 | 267,901 | 82,722 | 931,113 | ||||||||||||||||||||||||
Class C | — | — | — | — | 332,532 | 3,673,972 | 378,091 | 4,243,820 | ||||||||||||||||||||||||
Class I | 457,460 | 4,414,130 | 581,401 | 5,720,536 | 1,129,281 | 11,030,973 | 5,159,854 | 51,728,489 | ||||||||||||||||||||||||
Class R6 | 58,753 | 560,540 | — | — | 136,803 | 1,315,766 | — | — | ||||||||||||||||||||||||
1,506,545 | $14,573,975 | 1,674,585 | $16,628,818 | 5,066,749 | $54,363,944 | 7,588,474 | $78,960,147 | |||||||||||||||||||||||||
Shares issued to shareholders in reinvestment of distributions | ||||||||||||||||||||||||||||||||
Class A | 252,117 | $2,442,005 | 271,167 | $2,679,924 | 356,873 | $3,933,915 | 363,206 | $4,061,469 | ||||||||||||||||||||||||
Class B | 2,266 | 21,986 | 2,927 | 28,994 | 9,124 | 100,371 | 10,977 | 122,361 | ||||||||||||||||||||||||
Class C | — | — | — | — | 52,587 | 579,440 | 57,694 | 644,233 | ||||||||||||||||||||||||
Class I | 16,410 | 158,597 | 7,669 | 74,873 | 198,129 | 1,931,750 | 157,201 | 1,550,896 | ||||||||||||||||||||||||
Class R6 | 373 | 3,561 | — | — | 781 | 7,512 | — | — | ||||||||||||||||||||||||
271,166 | $2,626,149 | 281,763 | $2,783,791 | 617,494 | $6,552,988 | 589,078 | $6,378,959 | |||||||||||||||||||||||||
Shares reacquired | ||||||||||||||||||||||||||||||||
Class A | (1,338,356 | ) | $(12,958,713 | ) | (1,384,755 | ) | $(13,626,498 | ) | (2,006,737 | ) | $(22,113,967 | ) | (5,924,837 | ) | $(66,844,223 | ) | ||||||||||||||||
Class B | (19,280 | ) | (186,907 | ) | (35,939 | ) | (357,700 | ) | (127,971 | ) | (1,411,716 | ) | (110,540 | ) | (1,215,390 | ) | ||||||||||||||||
Class C | — | — | — | — | (585,288 | ) | (6,459,190 | ) | (491,013 | ) | (5,450,340 | ) | ||||||||||||||||||||
Class I | (269,189 | ) | (2,593,493 | ) | (111,253 | ) | (1,085,628 | ) | (576,585 | ) | (5,616,522 | ) | (106,937 | ) | (1,049,252 | ) | ||||||||||||||||
Class R6 | (263 | ) | (2,497 | ) | — | — | (2,997 | ) | (28,752 | ) | — | — | ||||||||||||||||||||
(1,627,088 | ) | $(15,741,610 | ) | (1,531,947 | ) | $(15,069,826 | ) | (3,299,578 | ) | $(35,630,147 | ) | (6,633,327 | ) | $(74,559,205 | ) | |||||||||||||||||
Net change | ||||||||||||||||||||||||||||||||
Class A | (96,208 | ) | $(920,324 | ) | (28,564 | ) | $(119,885 | ) | 1,793,896 | $19,895,280 | (3,593,824 | ) | $(40,726,029 | ) | ||||||||||||||||||
Class B | (16,713 | ) | (162,000 | ) | (24,852 | ) | (247,113 | ) | (94,474 | ) | (1,043,444 | ) | (16,841 | ) | (161,916 | ) | ||||||||||||||||
Class C | — | — | — | — | (200,169 | ) | (2,205,778 | ) | (55,228 | ) | (562,287 | ) | ||||||||||||||||||||
Class I | 204,681 | 1,979,234 | 477,817 | 4,709,781 | 750,825 | 7,346,201 | 5,210,118 | 52,230,133 | ||||||||||||||||||||||||
Class R6 | 58,863 | 561,604 | — | — | 134,587 | 1,294,526 | — | — | ||||||||||||||||||||||||
150,623 | $1,458,514 | 424,401 | $4,342,783 | 2,384,665 | $25,286,785 | 1,544,225 | $10,779,901 | |||||||||||||||||||||||||
North Carolina Fund | Pennsylvania Fund | |||||||||||||||||||||||||||||||
Year ended 3/31/18 (i) | Year ended 3/31/17 | Year ended 3/31/18 (i) | Year ended 3/31/17 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | ||||||||||||||||||||||||||||||||
Class A | 5,358,088 | $62,303,446 | 4,858,461 | $57,348,503 | 1,426,322 | $14,661,913 | 1,343,807 | $14,147,968 | ||||||||||||||||||||||||
Class B | 15,431 | 179,851 | 8,649 | 103,869 | 10,972 | 113,144 | 21,401 | 225,940 | ||||||||||||||||||||||||
Class C | 508,892 | 5,933,896 | 904,341 | 10,813,359 | — | — | — | — | ||||||||||||||||||||||||
Class I | 2,844,852 | 27,587,886 | 4,834,513 | 47,940,476 | 791,763 | 7,756,643 | 2,203,484 | 21,889,000 | ||||||||||||||||||||||||
Class R6 | 1,417,034 | 13,576,860 | — | — | 126,332 | 1,221,209 | — | — | ||||||||||||||||||||||||
10,144,297 | $109,581,939 | 10,605,964 | $116,206,207 | 2,355,389 | $23,752,909 | 3,568,692 | $36,262,908 |
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North Carolina Fund – continued | Pennsylvania Fund – continued | |||||||||||||||||||||||||||||||
Year ended 3/31/18 (i) | Year ended 3/31/17 | Year ended 3/31/18 (i) | Year ended 3/31/17 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares issued to shareholders in reinvestment of distributions | ||||||||||||||||||||||||||||||||
Class A | 684,091 | $7,963,645 | 709,191 | $8,405,319 | 325,157 | $3,337,460 | 339,417 | $3,535,683 | ||||||||||||||||||||||||
Class B | 5,596 | 65,111 | 8,008 | 94,876 | 11,393 | 117,313 | 13,387 | 139,812 | ||||||||||||||||||||||||
Class C | 106,761 | 1,242,401 | 117,285 | 1,388,668 | — | — | — | — | ||||||||||||||||||||||||
Class I | 133,865 | 1,299,057 | 63,552 | 623,628 | 41,804 | 408,636 | 12,050 | 118,421 | ||||||||||||||||||||||||
Class R6 | 6,841 | 65,458 | — | — | 789 | 7,629 | — | — | ||||||||||||||||||||||||
937,154 | $10,635,672 | 898,036 | $10,512,491 | 379,143 | $3,871,038 | 364,854 | $3,793,916 | |||||||||||||||||||||||||
Shares reacquired | ||||||||||||||||||||||||||||||||
Class A | (4,057,055 | ) | $(47,192,906 | ) | (6,931,282 | ) | $(81,940,794 | ) | (1,675,613 | ) | $(17,205,519 | ) | (2,997,552 | ) | $(31,284,889 | ) | ||||||||||||||||
Class B | (106,650 | ) | (1,241,913 | ) | (82,761 | ) | (981,468 | ) | (146,276 | ) | (1,505,168 | ) | (107,247 | ) | (1,120,356 | ) | ||||||||||||||||
Class C | (978,730 | ) | (11,390,292 | ) | (791,322 | ) | (9,305,161 | ) | — | — | — | — | ||||||||||||||||||||
Class I | (2,249,465 | ) | (21,664,895 | ) | (913,106 | ) | (8,904,171 | ) | (703,150 | ) | (6,856,951 | ) | (222,823 | ) | (2,172,663 | ) | ||||||||||||||||
Class R6 | (44,265 | ) | (423,688 | ) | — | — | (2,522 | ) | (24,325 | ) | — | — | ||||||||||||||||||||
(7,436,165 | ) | $(81,913,694 | ) | (8,718,471 | ) | $(101,131,594 | ) | (2,527,561 | ) | $(25,591,963 | ) | (3,327,622 | ) | $(34,577,908 | ) | |||||||||||||||||
Net change | ||||||||||||||||||||||||||||||||
Class A | 1,985,124 | $23,074,185 | (1,363,630 | ) | $(16,186,972 | ) | 75,866 | $793,854 | (1,314,328 | ) | $(13,601,238 | ) | ||||||||||||||||||||
Class B | (85,623 | ) | (996,951 | ) | (66,104 | ) | (782,723 | ) | (123,911 | ) | (1,274,711 | ) | (72,459 | ) | (754,604 | ) | ||||||||||||||||
Class C | (363,077 | ) | (4,213,995 | ) | 230,304 | 2,896,866 | — | — | — | — | ||||||||||||||||||||||
Class I | 729,252 | 7,222,048 | 3,984,959 | 39,659,933 | 130,417 | 1,308,328 | 1,992,711 | 19,834,758 | ||||||||||||||||||||||||
Class R6 | 1,379,610 | 13,218,630 | — | — | 124,599 | 1,204,513 | — | — | ||||||||||||||||||||||||
3,645,286 | $38,303,917 | 2,785,529 | $25,587,104 | 206,971 | $2,031,984 | 605,924 | $5,478,916 | |||||||||||||||||||||||||
South Carolina Fund | Tennessee Fund | |||||||||||||||||||||||||||||||
Year ended 3/31/18 (i) | Year ended 3/31/17 | Year ended 3/31/18 (i) | Year ended 3/31/17 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | ||||||||||||||||||||||||||||||||
Class A | 1,687,411 | $20,222,014 | 2,501,488 | $30,630,100 | 778,024 | $8,080,159 | 1,401,369 | $14,955,824 | ||||||||||||||||||||||||
Class B | 1,548 | 18,678 | 12,664 | 156,008 | — | — | 14,740 | 156,603 | ||||||||||||||||||||||||
Class I | 1,615,093 | 15,584,049 | 1,485,702 | 14,746,524 | 819,303 | 7,948,520 | 2,186,586 | 21,426,741 | ||||||||||||||||||||||||
Class R6 | 305,463 | 2,927,300 | — | — | 322,448 | 3,080,602 | — | — | ||||||||||||||||||||||||
3,609,515 | $38,752,041 | 3,999,854 | $45,532,632 | 1,919,775 | $19,109,281 | 3,602,695 | $36,539,168 | |||||||||||||||||||||||||
Shares issued to shareholders in reinvestment of distributions | ||||||||||||||||||||||||||||||||
Class A | 408,148 | $4,895,416 | 415,489 | $5,061,717 | 249,842 | $2,596,143 | 287,331 | $3,041,715 | ||||||||||||||||||||||||
Class B | 6,035 | 72,371 | 7,643 | 93,084 | 2,904 | 30,150 | 3,305 | 34,969 | ||||||||||||||||||||||||
Class I | 44,376 | 430,445 | 21,134 | 207,008 | 63,497 | 616,648 | 21,662 | 211,634 | ||||||||||||||||||||||||
Class R6 | 1,496 | 14,340 | — | — | 1,751 | 16,728 | — | — | ||||||||||||||||||||||||
460,055 | $5,412,572 | 444,266 | $5,361,809 | 317,994 | $3,259,669 | 312,298 | $3,288,318 | |||||||||||||||||||||||||
Shares reacquired | ||||||||||||||||||||||||||||||||
Class A | (2,900,164 | ) | $(34,684,810 | ) | (2,925,645 | ) | $(35,597,847 | ) | (1,554,847 | ) | $(16,123,989 | ) | (2,816,347 | ) | $(29,585,664 | ) | ||||||||||||||||
Class B | (94,983 | ) | (1,140,163 | ) | (46,414 | ) | (564,714 | ) | (19,647 | ) | (203,940 | ) | (51,883 | ) | (552,064 | ) | ||||||||||||||||
Class I | (626,416 | ) | (6,047,182 | ) | (253,851 | ) | (2,467,376 | ) | (982,404 | ) | (9,491,960 | ) | (310,021 | ) | (3,004,101 | ) | ||||||||||||||||
Class R6 | (35,136 | ) | (336,227 | ) | — | — | (7,689 | ) | (73,379 | ) | — | — | ||||||||||||||||||||
(3,656,699 | ) | $(42,208,382 | ) | (3,225,910 | ) | $(38,629,937 | ) | (2,564,587 | ) | $(25,893,268 | ) | (3,178,251 | ) | $(33,141,829 | ) |
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Notes to Financial Statements – continued
South Carolina Fund – continued | Tennessee Fund – continued | |||||||||||||||||||||||||||||||
Year ended 3/31/18 (i) | Year ended 3/31/17 | Year ended 3/31/18 (i) | Year ended 3/31/17 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Net change | ||||||||||||||||||||||||||||||||
Class A | (804,605 | ) | $(9,567,380 | ) | (8,668 | ) | $93,970 | (526,981 | ) | $(5,447,691 | ) | (1,127,647 | ) | $(11,588,125 | ) | |||||||||||||||||
Class B | (87,400 | ) | (1,049,114 | ) | (26,107 | ) | (315,622 | ) | (16,743 | ) | (173,786 | ) | (33,838 | ) | (360,492 | ) | ||||||||||||||||
Class I | 1,033,053 | 9,967,312 | 1,252,985 | 12,486,156 | (99,604 | ) | (926,792 | ) | 1,898,227 | 18,634,274 | ||||||||||||||||||||||
Class R6 | 271,823 | 2,605,413 | — | — | 316,510 | 3,023,951 | — | — | ||||||||||||||||||||||||
412,871 | $1,956,231 | 1,218,210 | $12,264,504 | (326,818 | ) | $(3,524,318 | ) | 736,742 | $6,685,657 | |||||||||||||||||||||||
Virginia Fund | West Virginia Fund | |||||||||||||||||||||||||||||||
Year ended 3/31/18 (i) | Year ended 3/31/17 | Year ended 3/31/18 (i) | Year ended 3/31/17 | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Shares sold | ||||||||||||||||||||||||||||||||
Class A | 2,534,439 | $28,253,355 | 3,308,481 | $37,593,529 | 232,888 | $2,567,141 | 729,612 | $8,262,139 | ||||||||||||||||||||||||
Class B | 7,233 | 80,962 | 25,137 | 280,480 | 51 | 563 | 3,174 | 36,329 | ||||||||||||||||||||||||
Class C | 321,400 | 3,582,768 | 587,293 | 6,700,182 | — | — | — | — | ||||||||||||||||||||||||
Class I | 2,142,468 | 20,691,262 | 4,640,046 | 45,611,599 | 465,463 | 4,528,274 | 567,647 | 5,622,032 | ||||||||||||||||||||||||
Class R6 | 657,186 | 6,276,018 | — | — | 13,408 | 129,428 | — | — | ||||||||||||||||||||||||
5,662,726 | $58,884,365 | 8,560,957 | $90,185,790 | 711,810 | $7,225,406 | 1,300,433 | $13,920,500 | |||||||||||||||||||||||||
Shares issued to shareholders in reinvestment of distributions | ||||||||||||||||||||||||||||||||
Class A | 587,507 | $6,546,750 | 675,903 | $7,665,189 | 298,719 | $3,296,888 | 319,784 | $3,590,548 | ||||||||||||||||||||||||
Class B | 2,131 | 23,743 | 2,746 | 31,156 | 1,534 | 16,935 | 2,030 | 22,801 | ||||||||||||||||||||||||
Class C | 51,724 | 576,263 | 58,415 | 661,614 | — | — | — | — | ||||||||||||||||||||||||
Class I | 135,096 | 1,308,073 | 59,300 | 579,519 | 20,216 | 196,229 | 8,620 | 84,092 | ||||||||||||||||||||||||
Class R6 | 3,165 | 30,177 | — | — | 165 | 1,598 | — | — | ||||||||||||||||||||||||
779,623 | $8,485,006 | 796,364 | $8,937,478 | 320,634 | $3,511,650 | 330,434 | $3,697,441 | |||||||||||||||||||||||||
Shares reacquired | ||||||||||||||||||||||||||||||||
Class A | (3,539,345 | ) | $(39,352,273 | ) | (5,290,727 | ) | $(59,746,453 | ) | (1,354,129 | ) | $(14,968,332 | ) | (1,631,640 | ) | $(18,371,852 | ) | ||||||||||||||||
Class B | (26,914 | ) | (301,559 | ) | (57,524 | ) | (657,781 | ) | (23,882 | ) | (264,329 | ) | (20,026 | ) | (223,805 | ) | ||||||||||||||||
Class C | (522,719 | ) | (5,808,479 | ) | (460,549 | ) | (5,168,312 | ) | — | — | — | — | ||||||||||||||||||||
Class I | (1,816,962 | ) | (17,466,213 | ) | (573,961 | ) | (5,572,632 | ) | (248,699 | ) | (2,423,274 | ) | (83,854 | ) | (821,273 | ) | ||||||||||||||||
Class R6 | (11,899 | ) | (113,463 | ) | — | — | (24 | ) | (225 | ) | — | — | ||||||||||||||||||||
(5,917,839 | ) | $(63,041,987 | ) | (6,382,761 | ) | $(71,145,178 | ) | (1,626,734 | ) | $(17,656,160 | ) | (1,735,520 | ) | $(19,416,930 | ) | |||||||||||||||||
Net change | ||||||||||||||||||||||||||||||||
Class A | (417,399 | ) | $(4,552,168 | ) | (1,306,343 | ) | $(14,487,735 | ) | (822,522 | ) | $(9,104,303 | ) | (582,244 | ) | $(6,519,165 | ) | ||||||||||||||||
Class B | (17,550 | ) | (196,854 | ) | (29,641 | ) | (346,145 | ) | (22,297 | ) | (246,831 | ) | (14,822 | ) | (164,675 | ) | ||||||||||||||||
Class C | (149,595 | ) | (1,649,448 | ) | 185,159 | 2,193,484 | — | — | — | — | ||||||||||||||||||||||
Class I | 460,602 | 4,533,122 | 4,125,385 | 40,618,486 | 236,980 | 2,301,229 | 492,413 | 4,884,851 | ||||||||||||||||||||||||
Class R6 | 648,452 | 6,192,732 | — | — | 13,549 | 130,801 | — | — | ||||||||||||||||||||||||
524,510 | $4,327,384 | 2,974,560 | $27,978,090 | (594,290 | ) | $(6,919,104 | ) | (104,653 | ) | $(1,798,989 | ) |
(i) | For the period from the inception of Class R6, August 1, 2017, through the stated period end. |
Class T shares were not publicly available for sale during the period. Please see the fund’s prospectus for details.
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Notes to Financial Statements – continued
(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 year ended March 31, 2018, 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 | $588 | $1,324 | $2,372 | $759 | $1,234 | $686 | $1,905 | $716 | ||||||||||||||||||||||||
Interest Expense | — | — | — | — | — | — | — | — |
(7) | Investments in Affiliated Issuers |
An affiliated issuer of a fund may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. For the purposes of this report, each fund assumes the MFS Institutional Money Market Portfolio to be an affiliated issuer. Each fund’s transactions in the MFS Institutional Money Market Portfolio for the year ended March 31, 2018, 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 | 285,770 | 18,266,973 | (18,373,090) | 179,653 | ||||||||||||
New York Fund | 3,286,666 | 75,654,830 | (78,520,754) | 420,742 | ||||||||||||
North Carolina Fund | 944,479 | 85,522,797 | (81,184,390) | 5,282,886 | ||||||||||||
Pennsylvania Fund | 1,490,362 | 26,070,348 | (27,411,715) | 148,995 | ||||||||||||
South Carolina Fund | 1,954,066 | 40,777,794 | (39,163,711) | 3,568,149 | ||||||||||||
Tennessee Fund | 917,216 | 28,245,183 | (28,847,622) | 314,777 | ||||||||||||
Virginia Fund | 1,876,760 | 66,639,689 | (66,499,844) | 2,016,605 | ||||||||||||
West Virginia Fund | 1,154,661 | 18,776,879 | (19,773,322) | 158,218 |
Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Capital Gain Distributions | Dividend Income | Ending Value | ||||||||||||||||
Mississippi Fund | $(340) | $7 | $— | $11,771 | $179,635 | |||||||||||||||
New York Fund | (968) | 69 | — | 54,804 | 420,700 | |||||||||||||||
North Carolina Fund | (1,049) | 489 | — | 62,390 | 5,282,358 | |||||||||||||||
Pennsylvania Fund | (513) | 36 | — | 14,931 | 148,980 | |||||||||||||||
South Carolina Fund | (63) | 401 | — | 28,159 | 3,567,792 | |||||||||||||||
Tennessee Fund | (45) | 32 | — | 15,554 | 314,746 | |||||||||||||||
Virginia Fund | (159) | 358 | — | 41,105 | 2,016,404 | |||||||||||||||
West Virginia Fund | (263) | 8 | — | 8,823 | 158,202 |
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of MFS Municipal Series Trust and the Shareholders of MFS Mississippi Municipal Bond Fund, MFS New York Municipal Bond Fund, MFS North Carolina Municipal Bond Fund, MFS Pennsylvania Municipal Bond Fund, MFS South Carolina Municipal Bond Fund, MFS Tennessee Municipal Bond Fund, MFS Virginia Municipal Bond Fund and MFS West Virginia Municipal Bond Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities of MFS Mississippi Municipal Bond Fund, MFS New York Municipal Bond Fund, MFS North Carolina Municipal Bond Fund, MFS Pennsylvania Municipal Bond Fund, MFS South Carolina Municipal Bond Fund, MFS Tennessee Municipal Bond Fund, MFS Virginia Municipal Bond Fund and MFS West Virginia Municipal Bond Fund (the “Funds”), including the portfolios of investments, as of March 31, 2018, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2018, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of March 31, 2018, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
May 16, 2018
We have served as the auditor of one or more of the MFS investment companies since 1924.
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TRUSTEES AND OFFICERS — IDENTIFICATION AND BACKGROUND
The Trustees and Officers of the Trust, as of May 1, 2018, are listed below, together with their principal occupations during the past five years. (Their titles may have varied during that period.) The address of each Trustee and Officer is 111 Huntington Avenue, Boston, Massachusetts 02199-7618.
Name, Age | Position(s) Held with Fund | Trustee/Officer Since (h) | Number of | Principal Occupations the Past Five Years | Other Directorships During the Past Five Years (j) | |||||
INTERESTED TRUSTEES | ||||||||||
Robert J. Manning (k) (age 54) | Trustee | February 2004 | 135 | Massachusetts Financial Services Company, Executive Chairman (since January 2017); Director; Chairman of the Board; Chief Executive Officer (until 2015); Co-Chief Executive Officer (2015-2016) | N/A | |||||
Robin A. Stelmach (k) (age 56) | Trustee | January 2014 | 135 | Massachusetts Financial Services Company, Vice Chair (since January 2017); Chief Operating Officer and Executive Vice President (until January 2017) | N/A | |||||
INDEPENDENT TRUSTEES | ||||||||||
John P. Kavanaugh (age 63) | Trustee and Chair of Trustees | January 2009 | 135 | Private investor | N/A | |||||
Steven E. Buller (age 66) | Trustee | February 2014 | 135 | Financial Accounting Standards Advisory Council, Chairman (2014-2015); Public Company Accounting Oversight Board, Standing Advisory Group, Member (until 2014); BlackRock, Inc. (investment management), Managing Director (until 2014), BlackRock Finco UK (investment management), Director (until 2014) | N/A | |||||
John A. Caroselli (age 63) | Trustee | March 2017 | 135 | JC Global Advisors, LLC (management consulting), President (since 2015); First Capital Corporation (commercial finance), Executive Vice President (until 2015) | N/A | |||||
Maureen R. Goldfarb (age 63) | Trustee | January 2009 | 135 | Private investor | N/A | |||||
Michael Hegarty (age 73) | Trustee | December 2004 | 135 | Private investor | Rouse Properties Inc., Director (until 2016); Capmark Financial Group Inc., Director (until 2015) | |||||
Clarence Otis, Jr. (age 62) | Trustee | March 2017 | 135 | Darden Restaurants, Inc., Chief Executive Officer (until 2014) | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director; Federal Reserve Bank of Atlanta, Director (until 2015) | |||||
Maryanne L. Roepke (age 62) | Trustee | May 2014 | 135 | American Century Investments (investment management), Senior Vice President and Chief Compliance Officer (until 2014) | N/A | |||||
Laurie J. Thomsen (age 60) | Trustee | March 2005 | 135 | Private investor | The Travelers Companies, Director; Dycom Industries, Inc., Director (since 2015) |
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Trustees and Officers – continued
Name, Age | Position(s) Held with Fund | Trustee/Officer Since (h) | Number of | Principal Occupations During the Past Five Years | ||||
OFFICERS | ||||||||
Christopher R. Bohane (k) (age 44) | Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Kino Clark (k) (age 49) | Assistant Treasurer | January 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
John W. Clark, Jr. (k) (age 51) | Assistant Treasurer | April 2017 | 135 | Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head – Treasurer’s Office (until February 2017) | ||||
Thomas H. Connors (k) (age 58) | Assistant Secretary and Assistant Clerk | September 2012 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
Ethan D. Corey (k) (age 54) | Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | ||||
David L. DiLorenzo (k) (age 49) | President | July 2005 | 135 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 50) | Secretary and Clerk | April 2017 | 135 | Massachusetts Financial Services Company, Executive Vice President and General Counsel (since March 2017); Harris Associates (investment management), General Counsel (from September 2015 to January 2017); Janus Capital Management LLC (investment management), Senior Vice President and General Counsel (until September 2015) | ||||
Brian E. Langenfeld (k) (age 45) | Assistant Secretary and Assistant Clerk | June 2006 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 47) | Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
Kasey L. Phillips (k) (age 47) | Assistant Treasurer | September 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 43) | Assistant Secretary and Assistant Clerk | October 2014 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Frank L. Tarantino (age 74) | Independent Senior Officer | June 2004 | 135 | Tarantino LLC (provider of compliance services), Principal | ||||
Richard S. Weitzel (k) (age 47) | Assistant Secretary and Assistant Clerk | October 2007 | 135 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | ||||
Martin J. Wolin (k) (age 50) | Chief Compliance Officer | July 2015 | 135 | Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer (since July 2015); Mercer (financial service provider), Chief Risk and Compliance Officer, North America and Latin America (until June 2015) | ||||
James O. Yost (k) (age 57) | Treasurer | September 1990 | 135 | Massachusetts Financial Services Company, Senior Vice President |
(h) | Date first appointed to serve as Trustee/officer of an MFS Fund. Each Trustee has served continuously since appointment unless indicated otherwise. For the period from December 15, 2004 until February 22, 2005, Mr. Manning served as Advisory Trustee. Prior to January 2012, Messrs. DiLorenzo and Yost served as Assistant Treasurers of the Funds. From January 2012 through December 2016, Messrs. DiLorenzo and Yost served as Treasurer and Deputy Treasurer of the Funds, respectively. |
(j) | Directorships or trusteeships of companies required to report to the Securities and Exchange Commission (i.e., “public companies”). |
(k) | “Interested person” of the Trust within the meaning of the Investment Company Act of 1940 (referred to as the 1940 Act), which is the principal federal law governing investment companies like the fund, as a result of a position with MFS. The address of MFS is 111 Huntington Avenue, Boston, Massachusetts 02199-7618. |
Each Trustee has been elected by shareholders and each Trustee and officer holds office until his or her successor is chosen and qualified or until his or her earlier death, resignation, retirement or removal. The Trust does not hold annual meetings for the purpose of electing Trustees, and Trustees are not elected for fixed terms. Under the terms of the Board’s retirement policy, an Independent Trustee shall retire at the end of the calendar year in which he or she reaches the earlier of 75 years of age or 15 years of service on the Board (or, in the case of any Independent Trustee who joined the Board prior to 2015, 20 years of service on the Board).
Messrs. Buller and Otis and Ms. Roepke are members of the Trust’s Audit Committee.
Each of the Interested Trustees and certain Officers hold comparable officer positions with certain affiliates of MFS.
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Trustees and Officers – continued
The Statement of Additional Information for a Fund includes further information about the Trustees and is available without charge upon request by calling 1-800-225-2606.
Investment Adviser Massachusetts Financial Services Company 111 Huntington Avenue Boston, MA 02199-7618 Distributor MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618 Portfolio Manager(s) Michael Dawson | Custodian JPMorgan Chase Bank, NA 4 Metrotech Center New York, NY 11245
Independent Registered Public Accounting Firm Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 |
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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 mfs.com/proxyvoting, 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 by August 31 of each year without charge by visiting mfs.com/proxyvoting, 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 at https://www.mfs.com/en-us/what-we-do/announcements.html or at mfs.com/openendfunds by choosing the fund’s name.
INFORMATION ABOUT FUND CONTRACTS AND LEGAL CLAIMS
Each fund has entered into contractual arrangements with an investment adviser, administrator, distributor, shareholder servicing agent, 529 program manager (if applicable), and custodian who each provide services to the fund. Unless expressly stated otherwise, shareholders are not parties to, or intended beneficiaries of these contractual arrangements, and these contractual arrangements are not intended to create any shareholder right to enforce them against the service providers or to seek any remedy under them against the service providers, either directly or on behalf of the fund.
Under the Trust’s By-Laws and Declaration of Trust, any claims asserted against or on behalf of the MFS Funds, including claims against Trustees and Officers, must be brought in state and federal courts located within the Commonwealth of Massachusetts.
FEDERAL TAX INFORMATION (unaudited)
The funds will notify shareholders of amounts for use in preparing 2018 income tax forms in January 2019. The following information is provided pursuant to provisions of the Internal Revenue Code.
Of the dividends paid from net investment income during the fiscal year, the following percentages were designated as exempt interest dividends for federal income tax purposes. If each fund has earned income on private activity bonds, a portion of the dividends paid may be considered a tax preference item for purposes of computing a shareholder’s alternative minimum tax.
Exempt Interest Dividends | ||||
Mississippi Fund | 93.57% | |||
New York Fund | 95.14% | |||
North Carolina Fund | 96.52% | |||
Pennsylvania Fund | 99.67% | |||
South Carolina Fund | 98.61% | |||
Tennessee Fund | 99.59% | |||
Virginia Fund | 98.38% | |||
West Virginia Fund | 98.26% |
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rev. 3/16
| WHAT DOES MFS DO WITH YOUR
| ![]() |
Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
What? | The types of personal information we collect and share depend on the product or service you have with us. This information can include:
• Social Security number and account balances • Account transactions and transaction history • Checking account information and wire transfer instructions
When you are no longer our customer, we continue to share your information as described in this notice. |
How? | All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons MFS chooses to share; and whether you can limit this sharing. |
Reasons we can share your personal information | Does MFS share? | Can you limit this sharing? | ||
For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus | Yes | No | ||
For our marketing purposes – to offer our products and services to you | No | We don’t share | ||
For joint marketing with other financial companies | No | We don’t share | ||
For our affiliates’ everyday business purposes – information about your transactions and experiences | No | We don’t share | ||
For our affiliates’ everyday business purposes – information about your creditworthiness | No | We don’t share | ||
For nonaffiliates to market to you | No | We don’t share |
Questions? | Call 800-225-2606 or go to mfs.com. |
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Page 2 |
Who we are | ||
Who is providing this notice? | MFS Funds, MFS Investment Management, MFS Institutional Advisors, Inc., and MFS Heritage Trust Company. |
What we do | ||
How does MFS protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include procedural, electronic, and physical safeguards for the protection of the personal information we collect about you. | |
How does MFS collect my personal information? | We collect your personal information, for example, when you
• open an account or provide account information • direct us to buy securities or direct us to sell your securities • make a wire transfer
We also collect your personal information from others, such as credit bureaus, affiliates, or other companies. | |
Why can’t I limit all sharing? | Federal law gives you the right to limit only
• sharing for affiliates’ everyday business purposes – information about your creditworthiness • affiliates from using your information to market to you • sharing for nonaffiliates to market to you
State laws and individual companies may give you additional rights to limit sharing. |
Definitions | ||
Affiliates | Companies related by common ownership or control. They can be financial and nonfinancial companies.
• MFS does not share personal information with affiliates, except for everyday business purposes as described on page one of this notice. | |
Nonaffiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies.
• MFS does not share with nonaffiliates so they can market to you. | |
Joint marketing | A formal agreement between nonaffiliated financial companies that together market financial products or services to you.
• MFS doesn’t jointly market. |
Other important information | ||
If you own an MFS product or receive an MFS service in the name of a third party such as a bank or broker-dealer, their privacy policy may apply to you instead of ours. |
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| 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.
CONTACT US
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 DST Asset Manager Solutions, Inc.
30 Dan Road
Canton, MA 02021-2809
Table of Contents
Annual Report
March 31, 2018
MFS® Municipal Income Fund
LMB-ANN
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
LETTER FROM THE EXECUTIVE CHAIRMAN
Dear Shareholders:
Rising bond yields have led to a measurable uptick in market volatility — a departure from the low-volatility environment that prevailed for much of 2017. In recent months,
against this backdrop, global markets have given back some of the strong gains recorded during 2017 and early 2018. Global economic growth remains robust, notwithstanding signs of a modest slowdown over the past few months, particularly in Europe.
Although the U.S. Federal Reserve continues to gradually raise interest rates and shrink its balance sheet, monetary policy remains accommodative around the world, with many central banks taking only tentative steps toward tighter policies. Newly enacted U.S. tax reforms have been welcomed by equity markets, while emerging market economies have benefited from a weaker U.S. dollar.
Around the world, inflation remains largely subdued, but tight labor markets and solid global demand have investors on the lookout for its potential resurgence. Increased U.S. protectionism is also a growing concern, as investors fear that trade friction could disrupt the synchronized rise in global growth.
At MFS®, we believe having a disciplined, long-term investment approach through a full market cycle is essential to capturing the best opportunities while also managing risk. In our view, such a strategy, along with the professional guidance of a financial advisor, will help you reach your investment objectives.
Respectfully,
Robert J. Manning
Executive Chairman
MFS Investment Management
May 16, 2018
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 | 15.7% | |||
General Obligations – General Purpose | 9.7% | |||
Universities – Colleges | 7.4% | |||
General Obligations – Schools | 6.1% | |||
Healthcare Revenue – Long Term Care | 5.4% | |||
State & Local Agencies | 5.2% | |||
Transportation – Special Tax | 5.1% | |||
Water & Sewer Utility Revenue | 4.5% | |||
Sales & Excise Tax Revenue | 4.2% | |||
Airport Revenue | 3.9% |
Composition including fixed income credit quality (a)(i) | ||||
AAA | 3.8% | |||
AA | 26.5% | |||
A | 30.1% | |||
BBB | 22.0% | |||
BB | 6.0% | |||
B | 1.5% | |||
CCC | 0.3% | |||
CC | 0.2% | |||
C | 1.8% | |||
D | 1.1% | |||
Not Rated | 7.1% | |||
Cash & Cash Equivalents | 0.1% | |||
Other | (0.5)% | |||
Portfolio facts (i) | ||||
Average Duration (d) | 6.7 | |||
Average Effective Maturity (m) | 15.4 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 or may not have held all of these instruments on this date. 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. |
Where the fund holds convertible bonds, they are treated as part of the equity portion of the portfolio.
Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Other includes equivalent exposure from currency derivatives and/or any offsets to derivative positions and/or the leverage created through the issuance of self-deposited inverse floaters and may be negative.
Percentages are based on net assets as of March 31, 2018.
The portfolio is actively managed and current holdings may be different.
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Summary of Results
For the twelve months ended March 31, 2018, Class A shares of the MFS Municipal Income Fund (“fund”) provided a total return of 3.35%, at net asset value. This compares with a return of 2.66% for the fund’s benchmark, the Bloomberg Barclays Municipal Bond Index.
Market Environment
Despite continued solid global economic growth, financial markets were buffeted by increased volatility late in the reporting period. The increase in volatility dented what had been high levels of investor confidence, leading to a correction in what had been elevated valuations. Valuations are now more in line with long-term averages after the recent bout of market weakness. So far, the rise in volatility has not disrupted the synchronized upturn in growth, though developed markets showed signs of a modest slowdown in the expansion’s pace in early 2018.
During the period, the US Federal Reserve (“Fed”) raised rates by 75 basis points, bringing the total number of hikes to six since the central bank began to normalize monetary policy in late 2015. The growth rate in the US, eurozone and Japan remains above potential, though inflation remains contained, particularly outside the US. In the middle of the period, the European Central Bank announced that it was extending its asset purchase program until the end of September 2018, but cut its pace of asset purchases in half as economic conditions improved. Both the Bank of England (“BOE”) and the Bank of Canada raised rates during the period, the BOE for the first time in a decade. The European political backdrop became a bit less volatile late in the period, with populist parties gaining an increased share of the vote, but thus far falling short of majorities in eurozone member states.
Bond yields rose in most developed economies during the period, but they remain low by historic standards. Credit spreads remain relatively tight, but widened modestly late in the period as market volatility increased. Increasing concern over growing global trade friction risks weighed on the strong global trade volumes seen during the period’s second half. The US announced broad-based tariffs on imports of steel and aluminum during the period, though some nations have been exempted, and later targeted China for tariffs, in retaliation for what it believes is abuse of intellectual property rights. Growing fears of wider trade skirmishes have added to volatility. Concerns that US technology giants have been careless with private user data are contributing to the volatility as well.
10-Year US Treasury yields were largely range-bound during the first half of the reporting period before spiking higher during the latter half of the reporting period, with most of the rise occurring during the first quarter of 2018. The surge in yields was primarily due to the passage of the Tax Cuts and Jobs Act, which cut individual and corporate tax rates, as well as a larger-than-expected fiscal spending package. This led investors to increase expectations for better economic growth and a potential increase in inflationary pressures, pushing bond yields higher. Yields moderated, however, towards the end of the reporting period due to increased equity market volatility and concerns about escalating trade wars.
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Management Review – continued
The Fed, continuing its efforts to normalize monetary policy, raised the Federal Funds rate three times during the reporting period, including one rate increase under new Federal Reserve Chairman Jerome Powell, who replaced Janet Yellen in February 2018. Generally, markets viewed the transition to the new Fed chairman without much concern – having served as a Fed governor since 2012, Powell is a known quantity among investors.
Another major event that occurred during the period was Hurricane Maria making landfall on the island of Puerto Rico. The hurricane had a devastating impact on the island’s residents and the government’s ability to provide basic human services such as water, power and healthcare. The prospects for long-term recovery are still uncertain and the government and many of its agencies and instrumentalities, which were already operating under an oversight board established by the Puerto Rico Oversight, Management and Economic Stability Act, are in the process of amending their financial plans in light of the recent events. As such, prices of the majority of debt issued from the jurisdiction of Puerto Rico, both insured and uninsured, declined in the weeks following the Hurricane, but have since recovered somewhat.
For the reporting period, the municipal market largely took its cue from the direction of US Treasury rates. Yields were largely range-bound early in the period, and then accelerated higher towards the end of the reporting period, pushed higher by the same factors impacting US Treasury yields – optimism over stronger US growth in the wake of the tax reform and increased fiscal spending. Yields moderated in the last six weeks of the reporting period amid an increase in equity market volatility and concerns about the impact of a trade war on the global economy.
Against this backdrop, the municipal yield curve flattened, with yields on shorter-dated municipal bonds rising more than yields on longer-dated bonds. As a result, the broader US investment grade municipal bond market provided modestly positive returns with long-dated bonds dramatically outperforming short-dated bonds, and lower-quality bonds outperforming higher-quality.
The US economic backdrop appears supportive of municipal bond fundamentals; valuations appear tight within the context of longer-term municipal performance, but on a tax-adjusted basis, municipal bonds offer satisfactory relative value compared with broader fixed income markets.
Factors Affecting Performance
Relative to the Bloomberg Barclays Municipal Bond Index, the fund’s asset allocation decisions were a primary factor that supported performance. From a credit rating perspective, the fund’s out-of-benchmark positions in non-rated (r) and “BB”-rated securities, as well as an overweight position in “BBB”-rated bonds, aided relative returns as these quality segments performed well over the period. From a sector perspective, the fund’s overweight positions in both health care and industrial bonds, as well as an underweight position in general obligation bonds issued by the states, also contributed to relative results.
The fund’s yield curve (y) positioning, particularly the combination of a lesser exposure to shorter maturity bonds a greater exposure to longer maturity securities, benefited relative returns as the yield curve generally flattened over the period, with rates at the beginning of the yield curve rising faster than those at the long end.
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Management Review – continued
Security selection also helped performance relative to the benchmark. Notably, strong bond selection within the health care, education, state and local sectors aided relative returns.
In contrast, the fund’s out-of-benchmark position in “D”-rated Ambac-insured bonds from Puerto Rico weakened relative performance as the US territory works through bankruptcy proceedings.
Respectfully,
Portfolio Manager(s)
Jason Kosty and Geoffrey Schechter
(r) | Bonds rated “BBB”, “Baa”, or higher are considered investment grade; bonds rated “BB”, “Ba”, or below are considered non-investment grade. The sources for bond quality ratings are Moody’s Investors Service, Standard & Poor’s and Fitch, Inc. and are applied using the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). For securities which are not rated by any of the three agencies, the security is considered Not Rated. |
(y) | A yield curve graphically depicts the yields of different maturity bonds of the same credit quality and type; a normal yield curve is upward sloping, with short-term rates lower than long-term rates. |
The views expressed in this report are those of the portfolio manager(s) only through the end of the period of the report as stated on the cover and do not necessarily reflect the views of MFS or any other person in the MFS organization. These views are subject to change at any time based on market or other conditions, and MFS disclaims any responsibility to update such views. These views may not be relied upon as investment advice or an indication of trading intent on behalf of any MFS portfolio. References to specific securities are not recommendations of such securities, and may not be representative of any MFS portfolio’s current or future investments.
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PERFORMANCE SUMMARY THROUGH 3/31/18
The following chart illustrates a representative class of the fund’s historical performance in comparison to its benchmark(s). Performance results include the deduction of the maximum applicable sales charge and reflect the percentage change in net asset value, including reinvestment of dividends and capital gains distributions. The performance of other share classes will be greater than or less than that of the class depicted below. Benchmarks are unmanaged and may not be invested in directly. Benchmark returns do not reflect sales charges, commissions or expenses. (See Notes to Performance Summary.)
Performance data shown represents past performance and is no guarantee of future results. Investment return and principal value fluctuate so your shares, when sold, may be worth more or less than the original cost; current performance may be lower or higher than quoted. The performance shown does not reflect the deduction of taxes, if any, that a shareholder would pay on fund distributions or the redemption of fund shares.
Growth of a Hypothetical $10,000 Investment
7
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Performance Summary – continued
Total Returns through 3/31/18
Average annual without sales charge
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr | Life (t) | |||||||||
A | 9/07/93 | 3.35% | 2.86% | 4.70% | N/A | |||||||||
B | 12/29/86 | 2.58% | 2.11% | 3.93% | N/A | |||||||||
C | 1/03/94 | 2.58% | 2.08% | 3.91% | N/A | |||||||||
I | 8/01/11 | 3.73% | 3.14% | N/A | 4.71% | |||||||||
R6 | 8/01/17 | N/A | N/A | N/A | 0.75% | |||||||||
A1 | 6/25/07 | 3.61% | 3.11% | 4.97% | N/A | |||||||||
B1 | 6/25/07 | 2.83% | 2.35% | 4.18% | N/A | |||||||||
Comparative benchmark(s) | ||||||||||||||
Bloomberg Barclays Municipal Bond Index (f) | 2.66% | 2.73% | 4.40% | N/A | ||||||||||
Average annual with sales charge | ||||||||||||||
A With Initial Sales Charge (4.25%) | (1.04)% | 1.97% | 4.24% | N/A | ||||||||||
B With CDSC (Declining over six years from 4% to 0%) (v) | (1.41)% | 1.75% | 3.93% | N/A | ||||||||||
C With CDSC (1% for 12 months) (v) | 1.58% | 2.08% | 3.91% | N/A | ||||||||||
A1 With Initial Sales Charge (4.25%) | (0.79)% | 2.22% | 4.52% | N/A | ||||||||||
B1 With CDSC (Declining over six years from 4% to 0%) (v) | (1.16)% | 2.00% | 4.18% | N/A |
CDSC – Contingent Deferred Sales Charge.
Class I and R6 shares do not have a sales charge.
(f) | Source: FactSet Research Systems Inc. |
(t) | For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.) |
(v) | Assuming redemption at the end of the applicable period. |
Benchmark Definition(s)
Bloomberg Barclays Municipal Bond Index – a market capitalization-weighted index that measures the performance of the tax-exempt bond market.
It is not possible to invest directly in an index.
Notes to Performance Summary
Average annual total return represents the average annual change in value for each share class for the periods presented. Life returns are presented where the share class has less than 10 years of performance history and represent the average annual total return from the class inception date to the stated period end date. As the fund’s share
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Performance Summary – continued
classes may have different inception dates, the life returns may represent different time periods and may not be comparable. As a result, no comparative benchmark performance information is provided for life periods.
Performance results reflect any applicable expense subsidies and waivers in effect during the periods shown. Without such subsidies and waivers the fund’s performance results would be less favorable. Please see the prospectus and financial statements for complete details.
Performance results do not include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles and may differ from amounts reported in the financial highlights.
A portion of income may be subject to state, federal, and/or alternative minimum tax. Capital gains, if any, are subject to a capital gains tax.
From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower.
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Fund expenses borne by the shareholders during the period, October 1, 2017 through March 31, 2018
As a shareholder of the fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on certain purchase or redemption payments, and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period October 1, 2017 through March 31, 2018.
Actual Expenses
The first line for each share class in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line for each share class in the following table provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
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Expense Table – continued
Share Class | Annualized Expense Ratio | Beginning Account Value 10/01/17 | Ending Account Value 3/31/18 | Expenses Paid During Period (p) 10/01/17-3/31/18 | ||||||||||||||
A | Actual | 0.74% | $1,000.00 | $997.33 | $3.68 | |||||||||||||
Hypothetical (h) | 0.74% | $1,000.00 | $1,021.24 | $3.73 | ||||||||||||||
B | Actual | 1.49% | $1,000.00 | $994.81 | $7.41 | |||||||||||||
Hypothetical (h) | 1.49% | $1,000.00 | $1,017.50 | $7.49 | ||||||||||||||
C | Actual | 1.49% | $1,000.00 | $993.68 | $7.41 | |||||||||||||
Hypothetical (h) | 1.49% | $1,000.00 | $1,017.50 | $7.49 | ||||||||||||||
I | Actual | 0.49% | $1,000.00 | $999.68 | $2.44 | |||||||||||||
Hypothetical (h) | 0.49% | $1,000.00 | $1,022.49 | $2.47 | ||||||||||||||
R6 | Actual | 0.41% | $1,000.00 | $1,000.08 | $2.04 | |||||||||||||
Hypothetical (h) | 0.41% | $1,000.00 | $1,022.89 | $2.07 | ||||||||||||||
A1 | Actual | 0.49% | $1,000.00 | $999.75 | $2.44 | |||||||||||||
Hypothetical (h) | 0.49% | $1,000.00 | $1,022.49 | $2.47 | ||||||||||||||
B1 | Actual | 1.24% | $1,000.00 | $996.05 | $6.17 | |||||||||||||
Hypothetical (h) | 1.24% | $1,000.00 | $1,018.75 | $6.24 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
Notes to Expense Table
Expense ratios include 0.01% of investment related expenses from self-deposited inverse floaters (See Note 2 of the Notes to Financial Statements) that are outside of the expense limitation arrangement (See Note 3 of the Notes to Financial Statements).
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3/31/18
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
Municipal Bonds - 99.1% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Alabama - 1.4% | ||||||||
Birmingham, AL, Special Care Facilities Financing Authority Rev. (Methodist Home for the Aging), 5.25%, 6/01/2025 | $ | 930,000 | $ | 1,022,368 | ||||
Black Belt Energy Gas District, AL, Gas Prepay Rev., “A”, 4%, 12/01/2048 (Put Date 12/01/2023) | 6,570,000 | 7,045,668 | ||||||
Black Belt Energy Gas District, AL, Gas Prepay Rev., “B-1”, FLR, 2.051% (67% of LIBOR-1mo. + 0.9%), 12/01/2048 (Put Date 12/01/2023) | 20,175,000 | 20,175,000 | ||||||
Cullman County, AL, Health Care Authority (Cullman Regional Medical Center), “A”, 6.75%, 2/01/2029 | 3,550,000 | 3,634,596 | ||||||
DCH Health Care Authority, AL, Health Care Facilities Rev., 5%, 6/01/2033 | 785,000 | 874,223 | ||||||
Jefferson County, AL, Sewer Rev. Warrants, Capital Appreciation, Senior Lien, “B”, AGM, 0%, 10/01/2026 | 1,175,000 | 859,336 | ||||||
Jefferson County, AL, Sewer Rev. Warrants, Capital Appreciation, Senior Lien, “B”, AGM, 0%, 10/01/2029 | 1,655,000 | 987,373 | ||||||
Jefferson County, AL, Sewer Rev. Warrants, Capital Appreciation, Senior Lien, “B”, AGM, 0%, 10/01/2034 | 2,370,000 | 985,328 | ||||||
Jefferson County, AL, Sewer Rev. Warrants, Capital Appreciation, Senior Lien, “B”, AGM, 0%, 10/01/2035 | 4,495,000 | 1,748,061 | ||||||
Jefferson County, AL, Sewer Rev. Warrants, Subordinate Lien, “D”, 5%, 10/01/2021 | 310,000 | 333,408 | ||||||
Jefferson County, AL, Sewer Rev. Warrants, Subordinate Lien, “D”, 5%, 10/01/2023 | 455,000 | 500,291 | ||||||
Mobile, AL, General Obligation Warrants, “A”, 5%, 2/15/2030 | 3,130,000 | 3,632,584 | ||||||
Selma, AL, Industrial Development Board Rev., Gulf Opportunity Zone (International Paper Co.), “A”, 5.8%, 5/01/2034 | 3,565,000 | 3,850,663 | ||||||
|
| |||||||
$ | 45,648,899 | |||||||
Arizona - 1.5% | ||||||||
Arizona Industrial Development Authority Education Rev. (Academies of Math & Science), “A”, 5%, 7/01/2038 | $ | 370,000 | $ | 416,446 | ||||
Arizona Industrial Development Authority Education Rev. (Academies of Math & Science), “A”, 5%, 7/01/2048 | 990,000 | 1,103,008 | ||||||
Arizona Industrial Development Authority Education Rev. (Academies of Math & Science), “A”, 5%, 7/01/2052 | 1,235,000 | 1,362,094 | ||||||
Arizona Industrial Development Authority Education Rev. (Basis Schools Projects), “A”, 5.125%, 7/01/2037 | 1,000,000 | 1,039,790 | ||||||
Arizona Industrial Development Authority Education Rev. (Basis Schools Projects), “A”, 5.25%, 7/01/2047 | 750,000 | 781,515 |
12
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Arizona - continued | ||||||||
Arizona Industrial Development Authority Education Rev. (Basis Schools Projects), “D”, 5%, 7/01/2037 | $ | 95,000 | $ | 98,263 | ||||
Arizona Industrial Development Authority Education Rev. (Basis Schools Projects), “D”, 5%, 7/01/2047 | 160,000 | 164,400 | ||||||
Arizona Industrial Development Authority Education Rev. (Basis Schools Projects), “D”, 5%, 7/01/2051 | 425,000 | 433,483 | ||||||
Arizona Industrial Development Authority Education Rev. (Basis Schools Projects), “F”, 5%, 7/01/2037 | 1,000,000 | 1,123,430 | ||||||
Arizona Industrial Development Authority Education Rev. (Basis Schools Projects), “F”, 5%, 7/01/2047 | 2,350,000 | 2,614,445 | ||||||
Arizona Industrial Development Authority Education Rev. (Basis Schools Projects), “F”, 5%, 7/01/2052 | 1,870,000 | 2,064,929 | ||||||
Arizona Industrial Development Authority Education Rev. (Basis Schools Projects), “G”, 5%, 7/01/2037 | 165,000 | 170,668 | ||||||
Arizona Industrial Development Authority Education Rev. (Basis Schools Projects), “G”, 5%, 7/01/2047 | 165,000 | 169,538 | ||||||
Arizona Industrial Development Authority Education Rev. (Basis Schools Projects), “G”, 5%, 7/01/2051 | 95,000 | 96,896 | ||||||
Maricopa County, AZ, Industrial Development Authority Rev. (Banner Health), “A”, 5%, 1/01/2034 | 7,000,000 | 8,017,310 | ||||||
Maricopa County, AZ, Pollution Control Rev. (El Paso Electric), “B”, 7.25%, 4/01/2040 | 1,710,000 | 1,797,603 | ||||||
Phoenix, AZ, Industrial Development Authority Education Facility Rev. (Basis Schools Projects), “A”, 5%, 7/01/2035 | 470,000 | 484,650 | ||||||
Phoenix, AZ, Industrial Development Authority Education Facility Rev. (Basis Schools Projects), “A”, 5%, 7/01/2035 | 140,000 | 144,364 | ||||||
Phoenix, AZ, Industrial Development Authority Education Facility Rev. (Basis Schools Projects), “A”, 5%, 7/01/2045 | 570,000 | 583,520 | ||||||
Phoenix, AZ, Industrial Development Authority Education Facility Rev. (Basis Schools Projects), “A”, 5%, 7/01/2046 | 340,000 | 347,854 | ||||||
Phoenix, AZ, Industrial Development Authority Education Facility Rev. (Great Hearts Academies Project), “A”, 5%, 7/01/2036 | 700,000 | 764,302 | ||||||
Phoenix, AZ, Industrial Development Authority Education Facility Rev. (Great Hearts Academies Project), “A”, 5%, 7/01/2041 | 560,000 | 600,454 | ||||||
Phoenix, AZ, Industrial Development Authority Education Facility Rev. (Great Hearts Academies Project), “A”, 5%, 7/01/2046 | 895,000 | 943,393 | ||||||
Phoenix, AZ, Industrial Development Authority Education Facility Rev. (Legacy Traditional Schools Project), 5%, 7/01/2035 | 840,000 | 866,183 | ||||||
Phoenix, AZ, Industrial Development Authority Education Facility Rev. (Legacy Traditional Schools Project), 5%, 7/01/2045 | 925,000 | 946,358 | ||||||
Phoenix, AZ, Industrial Development Authority Education Facility Rev. (Legacy Traditional Schools Project), 5%, 7/01/2046 | 610,000 | 626,543 |
13
Table of Contents
Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Arizona - continued | ||||||||
Pima County, AZ, Industrial Development Authority Education Facility Rev. (American Leadership Academy Project), 4.75%, 6/15/2037 | $ | 690,000 | $ | 678,008 | ||||
Pima County, AZ, Industrial Development Authority Education Facility Rev. (American Leadership Academy Project), 5%, 6/15/2047 | 635,000 | 635,286 | ||||||
Pima County, AZ, Industrial Development Authority Education Facility Rev. (American Leadership Academy Project), 5%, 6/15/2052 | 550,000 | 541,976 | ||||||
Salt River, AZ, Agricultural Improvement & Power District, “A” , 5%, 1/01/2038 | 8,000,000 | 9,255,600 | ||||||
Salt River, AZ, Agricultural Improvement Power District, Electric System Rev., “A”, 5%, 1/01/2037 | 4,265,000 | 5,016,408 | ||||||
Salt Verde Financial Corp., AZ, Senior Gas Rev., 5%, 12/01/2037 | 4,000,000 | 4,740,280 | ||||||
|
| |||||||
$ | 48,628,997 | |||||||
Arkansas - 0.2% | ||||||||
Arkansas Development Finance Authority Hospital Rev. (Washington Regional Medical Center), 5%, 2/01/2038 | $ | 1,665,000 | $ | 1,872,575 | ||||
Arkansas Development Finance Authority Hospital Rev. (Washington Regional Medical Center), “A”, 5%, 2/01/2035 | 435,000 | 475,960 | ||||||
Arkansas Development Finance Authority, Tobacco Settlement Rev. (Cancer Research Center Project), Capital Appreciation, AMBAC, 0%, 7/01/2046 | 4,995,000 | 1,452,046 | ||||||
Pulaski County, AR, Public Facilities Board Healthcare Rev. (Baptist Health), 5%, 12/01/2042 | 1,520,000 | 1,668,550 | ||||||
|
| |||||||
$ | 5,469,131 | |||||||
California - 10.2% | ||||||||
Alameda, CA, Corridor Transportation Authority Senior Lien Rev., “A”, AGM, 5%, 10/01/2028 | $ | 985,000 | $ | 1,113,927 | ||||
California Community College Financing Authority Lease Rev. (West Valley Mission Community College), “C”, 5%, 6/01/2025 | 3,960,000 | 4,690,818 | ||||||
California Community College Financing Authority Lease Rev. (West Valley Mission Community College), “C”, 5%, 6/01/2026 | 4,145,000 | 4,963,057 | ||||||
California Educational Facilities Authority Rev. (Chapman University), 5%, 4/01/2031 | 1,550,000 | 1,683,564 | ||||||
California Educational Facilities Authority Rev. (Stanford University), “U-7”, 5%, 6/01/2046 | 7,840,000 | 10,271,654 | ||||||
California Educational Facilities Authority Rev. (University of San Francisco), 6.125%, 10/01/2036 (Prerefunded 10/01/2021) | 450,000 | 514,971 | ||||||
California Educational Facilities Authority Rev. (University of San Francisco), 6.125%, 10/01/2036 | 475,000 | 541,505 |
14
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
California - continued | ||||||||
California Educational Facilities Authority Rev. (University of Southern California), “A”, 5.25%, 10/01/2038 (Prerefunded 10/01/2018) | $ | 4,610,000 | $ | 4,696,898 | ||||
California Health Facilities Financing Authority Rev. (St. Joseph Health System), “A”, 5.75%, 7/01/2039 | 2,580,000 | 2,714,624 | ||||||
California Health Facilities Financing Authority Rev. (Sutter Health), “A”, 5%, 11/15/2046 | 2,530,000 | 2,841,038 | ||||||
California Health Facilities Financing Authority Rev. (Sutter Health), “D”, 5.25%, 8/15/2031 | 5,000,000 | 5,557,500 | ||||||
California M-S-R Energy Authority Gas Rev., “A”, 7%, 11/01/2034 | 595,000 | 843,103 | ||||||
California M-S-R Energy Authority Gas Rev., “A”, 6.5%, 11/01/2039 | 1,185,000 | 1,664,143 | ||||||
California Municipal Finance Authority Rev. (Biola University), 5.8%, 10/01/2028 (Prerefunded 10/01/2018) | 1,785,000 | 1,823,021 | ||||||
California Municipal Finance Authority Rev. (Channing House Project), “B”, 5%, 5/15/2047 | 1,500,000 | 1,706,880 | ||||||
California Municipal Finance Authority Rev. (Community Medical Centers), “A”, 5%, 2/01/2042 | 1,750,000 | 1,922,673 | ||||||
California Municipal Finance Authority Rev. (NorthBay Healthcare Group), “A”, 5.25%, 11/01/2036 | 1,510,000 | 1,666,617 | ||||||
California Municipal Finance Authority Rev. (NorthBay Healthcare Group), “A”, 5.25%, 11/01/2041 | 4,890,000 | 5,330,002 | ||||||
California Municipal Finance Authority Rev. (NorthBay Healthcare Group), “A”, 5.25%, 11/01/2047 | 235,000 | 255,255 | ||||||
California Municipal Finance Authority Rev. (University of La Verne), “A”, 6.25%, 6/01/2040 (Prerefunded 6/01/2020) | 850,000 | 933,802 | ||||||
California Pollution Control Financing Authority, Solid Waste Disposal Rev. (Republic Services, Inc. Project), “A-1”, 1.55%, 11/01/2042 (Put Date 4/16/2018) | 5,000,000 | 4,999,050 | ||||||
California Public Finance Authority Rev. (Henry Mayo Newhall Hospital), 5%, 10/15/2033 | 260,000 | 288,756 | ||||||
California Public Finance Authority Rev. (Henry Mayo Newhall Hospital), 5%, 10/15/2037 | 510,000 | 560,873 | ||||||
California Public Finance Authority Rev. (Henry Mayo Newhall Hospital), 5%, 10/15/2047 | 510,000 | 554,630 | ||||||
California Public Works Board Lease Rev. (Various Capital Projects), “G-1”, 5.75%, 10/01/2030 (Prerefunded 10/01/2019) | 2,950,000 | 3,132,340 | ||||||
California Public Works Board Lease Rev. (Various Capital Projects), “I”, 5%, 11/01/2038 | 9,180,000 | 10,241,116 | ||||||
California Public Works Board Lease Rev., Department of Corrections and Rehabilitation (Various Correctional Facilities), “A”, 5%, 9/01/2033 | 9,250,000 | 10,413,372 | ||||||
California School Finance Authority, School Facility Rev. (Alliance for College-Ready Public Schools Projects), “A”, 4%, 7/01/2024 | 560,000 | 595,258 |
15
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
California - continued | ||||||||
California School Finance Authority, School Facility Rev. (Alliance for College-Ready Public Schools Projects), “A”, 4%, 7/01/2025 | $ | 585,000 | $ | 620,469 | ||||
California School Finance Authority, School Facility Rev. (Alliance for College-Ready Public Schools Projects), “A”, 5%, 7/01/2030 | 505,000 | 561,151 | ||||||
California School Finance Authority, School Facility Rev. (Alliance for College-Ready Public Schools Projects), “A”, 5%, 7/01/2045 | 1,340,000 | 1,444,440 | ||||||
California Statewide Communities Development Authority Environmental Facilities Rev. (Microgy Holdings Project), 9%, 12/01/2038 (a)(d) | 126,224 | 1 | ||||||
California Statewide Communities Development Authority Refunding Rev. (California Baptist University), “A”, 3%, 11/01/2022 | 1,690,000 | 1,685,674 | ||||||
California Statewide Communities Development Authority Refunding Rev. (California Baptist University), “A”, 3.5%, 11/01/2027 | 3,930,000 | 3,935,109 | ||||||
California Statewide Communities Development Authority Refunding Rev. (California Baptist University), “A”, 5%, 11/01/2032 | 485,000 | 533,388 | ||||||
California Statewide Communities Development Authority Refunding Rev. (California Baptist University), “A”, 5%, 11/01/2041 | 955,000 | 1,033,501 | ||||||
California Statewide Communities Development Authority Rev. (American Baptist Homes of the West), 6.25%, 10/01/2039 | 1,050,000 | 1,110,102 | ||||||
California Statewide Communities Development Authority Rev. (Lancer Educational Student Housing Project), 7.5%, 6/01/2042 (Prerefunded 6/01/2019) | 855,000 | 910,772 | ||||||
California Statewide Communities Development Authority Rev. (Lancer Plaza Project), 5.125%, 11/01/2023 | 110,000 | 117,162 | ||||||
California Statewide Communities Development Authority Rev. (Lancer Plaza Project), 5.625%, 11/01/2033 | 190,000 | 212,230 | ||||||
California Statewide Communities Development Authority Rev. (Loma Linda University Medical Center), “A”, 5.25%, 12/01/2034 | 645,000 | 703,908 | ||||||
California Statewide Communities Development Authority Rev. (Loma Linda University Medical Center), “A”, 5.25%, 12/01/2044 | 2,475,000 | 2,649,735 | ||||||
California Statewide Communities Development Authority Rev. (Loma Linda University Medical Center), “A”, 5%, 12/01/2046 | 4,640,000 | 4,903,830 | ||||||
California Statewide Communities Development Authority Rev. (Loma Linda University Medical Center), “A”, 5.25%, 12/01/2056 | 990,000 | 1,059,726 | ||||||
California Statewide Communities Development Authority Rev. (Student Housing, SUCI East Campus), 6%, 5/15/2040 (Prerefunded 5/15/2018) | 1,655,000 | 1,663,689 | ||||||
California Statewide Communities Development Authority School Facility Rev. (Aspire Public Schools), 6.125%, 7/01/2046 (Prerefunded 1/01/2019) | 5,025,000 | 5,194,342 |
16
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
California - continued | ||||||||
Chula Vista, CA, Industrial Development Rev. (San Diego Gas & Electric Co.), “E”, 5.875%, 1/01/2034 | $ | 1,840,000 | $ | 1,923,978 | ||||
Escondido, CA, Union High School District (Election of 2008), Capital Appreciation, “A”, ASSD GTY, 0%, 8/01/2030 | 4,495,000 | 3,017,179 | ||||||
Escondido, CA, Union High School District (Election of 2008), Capital Appreciation, “A”, ASSD GTY, 0%, 8/01/2031 | 4,015,000 | 2,585,379 | ||||||
Escondido, CA, Union High School District (Election of 2008), Capital Appreciation, “A”, ASSD GTY, 0%, 8/01/2033 | 2,785,000 | 1,656,100 | ||||||
Foothill-De Anza, CA, Community College District, Capital Appreciation, NATL, 0%, 8/01/2034 | 21,410,000 | 12,307,110 | ||||||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A”, 5%, 6/01/2034 | 3,000,000 | 3,408,780 | ||||||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A”, AGM, 4.55%, 6/01/2022 | 3,415,000 | 3,432,075 | ||||||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., Enhanced, “A”, AGM, 5%, 6/01/2040 | 9,765,000 | 10,861,707 | ||||||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., Enhanced, “A-1”, AMBAC, 4.6%, 6/01/2023 | 995,000 | 1,000,194 | ||||||
Hartnell , CA, Community College District (Monterey and San Benito Counties), Election of 2002 General Obligation, Capital Appreciation, “D”, 0%, 8/01/2039 (Prerefunded 8/01/2019) | 9,645,000 | 2,193,562 | ||||||
Inland Valley, CA, Development Successor Agency Tax Allocation, “A”, AGM, 5%, 9/01/2044 | 2,620,000 | 2,845,608 | ||||||
La Verne, CA, COP (Brethren Hillcrest Homes), 5%, 5/15/2036 | 640,000 | 673,715 | ||||||
Long Beach, CA, Marina Rev. (Alamitos Bay Marina Project), 5%, 5/15/2035 | 480,000 | 533,294 | ||||||
Los Angeles County, CA, Regional Financing Authority Rev. (Montecedro Inc. Project), “A”, CALHF, 5%, 11/15/2034 | 480,000 | 535,109 | ||||||
Los Angeles County, CA, Regional Financing Authority Rev. (Montecedro Inc. Project), “A”, CALHF, 5%, 11/15/2044 | 820,000 | 904,698 | ||||||
Los Angeles, CA, Department of Airports Rev. (Los Angeles International), “A”, 5%, 5/15/2029 | 2,990,000 | 3,188,416 | ||||||
Los Angeles, CA, Department of Airports Rev. (Los Angeles International), “A”, 5%, 5/15/2034 | 465,000 | 536,833 | ||||||
Los Angeles, CA, Department of Airports Rev. (Los Angeles International), “A”, 5%, 5/15/2036 | 825,000 | 947,067 | ||||||
Los Angeles, CA, Department of Airports Rev. (Los Angeles International), “A”, 5%, 5/15/2037 | 1,030,000 | 1,179,535 | ||||||
Los Angeles, CA, Department of Airports Rev. (Los Angeles International), “A”, 5.25%, 5/15/2038 | 1,770,000 | 2,081,414 | ||||||
Los Angeles, CA, Department of Airports Rev. (Los Angeles International), “A”, 5%, 5/15/2044 | 3,605,000 | 4,128,374 | ||||||
Los Angeles, CA, Department of Water & Power Water System Rev., “A”, 5%, 7/01/2038 | 4,040,000 | 4,627,537 |
17
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
California - continued | ||||||||
Los Angeles, CA, Department of Water & Power Water System Rev., “A”, 5%, 7/01/2041 | $ | 6,435,000 | $ | 7,346,904 | ||||
Los Angeles, CA, Municipal Improvement Corp. Lease Rev. (Real Property), “E”, 6%, 9/01/2039 | 2,580,000 | 2,738,102 | ||||||
Los Angeles, CA, Unified School District, “D”, 5%, 1/01/2034 | 825,000 | 857,530 | ||||||
Madera, CA, Irrigation Financing Authority Water Rev., 6.5%, 1/01/2040 (Prerefunded 1/01/2020) | 3,595,000 | 3,892,199 | ||||||
Merced, CA, Union High School District, Capital Appreciation, “A”, ASSD GTY, 0%, 8/01/2030 | 580,000 | 388,368 | ||||||
Montebello, CA, Public Financing Authority Lease Rev. (Montebello Home2 Suites by Hilton Hotel Project), “A”, 5%, 6/01/2041 | 6,500,000 | 7,138,235 | ||||||
Montebello, CA, Public Financing Authority Lease Rev. (Montebello Home2 Suites by Hilton Hotel Project), “A”, 5%, 6/01/2046 | 2,000,000 | 2,186,040 | ||||||
Mt. San Antonio, CA, Community College District, Convertible Capital Appreciation, 0% to 8/01/2023, 5.875% to 8/01/2028 | 1,860,000 | 1,789,208 | ||||||
Oceanside, CA, Unified School District, Capital Appreciation, ASSD GTY, 0%, 8/01/2024 | 2,900,000 | 2,476,571 | ||||||
Oceanside, CA, Unified School District, Capital Appreciation, ASSD GTY, 0%, 8/01/2027 | 1,930,000 | 1,464,638 | ||||||
Oceanside, CA, Unified School District, Capital Appreciation, ASSD GTY, 0%, 8/01/2029 | 3,915,000 | 2,693,129 | ||||||
Oceanside, CA, Unified School District, Capital Appreciation, ASSD GTY, 0%, 8/01/2030 | 4,335,000 | 2,874,712 | ||||||
Oxnard, CA, Financing Authority, Wastewater Rev., AGM, 5%, 6/01/2030 | 1,640,000 | 1,836,898 | ||||||
Palomar Pomerado Health Care District, CA, COP, 6.75%, 11/01/2039 (Prerefunded 11/01/2019) | 2,210,000 | 2,384,435 | ||||||
Port of Oakland, CA, Rev., “P”, 5%, 5/01/2033 | 10,815,000 | 11,777,859 | ||||||
Riverside County, CA, Transportation Commission Sales Tax Rev. (Limited Tax), “A”, 2%, 6/01/2029 | 2,015,000 | 1,832,622 | ||||||
Riverside County, CA, Transportation Commission Sales Tax Rev. (Limited Tax), “A”, 5.25%, 6/01/2039 (Prerefunded 6/01/2023) | 4,655,000 | 5,395,704 | ||||||
Sacramento County, CA, Airport System Rev., “A”, 5%, 7/01/2041 | 10,000,000 | 11,380,300 | ||||||
Sacramento County, CA, Airport System Rev., “B”, 5%, 7/01/2041 | 6,000,000 | 6,781,560 | ||||||
Sacramento, CA, Municipal Utility District Electricity Rev., “X”, 5%, 8/15/2028 (Prerefunded 8/15/2021) | 835,000 | 919,878 | ||||||
Sacramento, CA, Municipal Utility District Electricity Rev., “X”, 5%, 8/15/2028 | 2,435,000 | 2,683,346 | ||||||
San Diego County, CA, Regional Airport Authority Rev., “A”, 5%, 7/01/2040 | 9,315,000 | 9,889,177 | ||||||
San Diego County, CA, Regional Airport Authority Rev., “B”, 5%, 7/01/2024 | 500,000 | 562,635 |
18
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
California - continued | ||||||||
San Diego County, CA, Regional Airport Authority Rev., “B”, 5%, 7/01/2025 | $ | 1,500,000 | $ | 1,681,620 | ||||
San Francisco, CA, City & County Airports Commission, International Airport Rev., “A”, 5%, 5/01/2028 | 6,000,000 | 6,631,980 | ||||||
San Francisco, CA, City & County Redevelopment Successor Agency, Tax Allocation (Mission Bay South Redevelopment Project), “A”, 5%, 8/01/2043 | 340,000 | 379,950 | ||||||
San Jose, CA, Airport Rev., “A-2”, 5.25%, 3/01/2034 | 7,570,000 | 8,248,802 | ||||||
San Jose, CA, Airport Rev., “C”, 5%, 3/01/2030 | 1,115,000 | 1,267,264 | ||||||
San Mateo County, CA, Community College District (Election of 2005), Capital Appreciation, “A”, NATL, 0%, 9/01/2026 | 5,100,000 | 4,110,804 | ||||||
State of California, 5%, 4/01/2024 | 4,365,000 | 4,840,523 | ||||||
State of California, 5.25%, 10/01/2028 | 2,965,000 | 3,301,409 | ||||||
State of California, 5%, 8/01/2029 | 5,000,000 | 5,893,200 | ||||||
State of California, 6.5%, 4/01/2033 | 4,000,000 | 4,193,400 | ||||||
State of California, 5%, 9/01/2034 | 9,000,000 | 10,459,800 | ||||||
State of California, 6%, 11/01/2039 | 3,000,000 | 3,199,950 | ||||||
Upland, CA, COP (San Antonio Community Hospital), 6.375%, 1/01/2032 (Prerefunded 1/01/2021) | 2,075,000 | 2,329,208 | ||||||
Upland, CA, COP (San Antonio Community Hospital), 6.5%, 1/01/2041 (Prerefunded 1/01/2021) | 915,000 | 1,028,835 | ||||||
West Contra Costa, CA, Unified School District (Election of 2005), Capital Appreciation, “C”, ASSD GTY, 0%, 8/01/2029 | 3,440,000 | 2,376,937 | ||||||
Whittier, CA, Union High School District, Capital Appreciation, 0%, 8/01/2034 | 2,005,000 | 759,695 | ||||||
|
| |||||||
$ | 331,420,767 | |||||||
Colorado - 4.0% | ||||||||
Colorado Eagle County School District RE50J, Garfield Routt Counties, General Obligation , 5%, 12/01/2034 | $ | 2,535,000 | $ | 2,929,547 | ||||
Colorado Eagle County School District RE50J, Garfield Routt Counties, General Obligation , 5%, 12/01/2035 | 5,000,000 | 5,769,950 | ||||||
Colorado Educational & Cultural Facilities Authority Rev. (Academy of Charter Schools Project), 5.625%, 5/01/2040 | 1,815,000 | 1,818,067 | ||||||
Colorado Educational & Cultural Facilities Authority Rev. (Liberty Common Project), 5%, 1/15/2029 | 195,000 | 215,339 | ||||||
Colorado Educational & Cultural Facilities Authority Rev. (Liberty Common Project), 5%, 1/15/2039 | 740,000 | 795,618 | ||||||
Colorado Educational & Cultural Facilities Authority Rev. (Liberty Common Project), 5%, 1/15/2044 | 605,000 | 647,205 | ||||||
Colorado Educational & Cultural Facilities Authority Rev. (Montessori Charter School Project), 5%, 7/15/2037 | 545,000 | 588,257 | ||||||
Colorado Educational & Cultural Facilities Authority Rev. (Peak to Peak Charter School Project), 5%, 8/15/2030 | 490,000 | 537,951 |
19
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Colorado - continued | ||||||||
Colorado Educational & Cultural Facilities Authority Rev. (Peak to Peak Charter School Project), 5%, 8/15/2034 | $ | 495,000 | $ | 533,135 | ||||
Colorado Educational & Cultural Facilities Authority Rev. (Pinnacle Charter School Building Corp.), 5%, 6/01/2029 | 700,000 | 764,701 | ||||||
Colorado Educational & Cultural Facilities Authority Rev. (The Classical Academy Project), 5%, 12/01/2031 | 1,725,000 | 1,926,308 | ||||||
Colorado Educational & Cultural Facilities Authority Rev. (The Classical Academy Project), “A”, 5%, 12/01/2038 | 1,020,000 | 1,114,595 | ||||||
Colorado Educational & Cultural Facilities Authority Rev. (Twin Peaks Charter Academy Project), 5%, 11/15/2031 | 1,855,000 | 2,061,981 | ||||||
Colorado Educational & Cultural Facilities Authority Rev. (Twin Peaks Charter Academy Project), 7%, 11/15/2038 (Prerefunded 11/15/2018) | 4,330,000 | 4,470,898 | ||||||
Colorado Educational & Cultural Facilities Authority Rev. (Union Colony School Project), 5%, 4/01/2038 | 305,000 | 338,398 | ||||||
Colorado Educational & Cultural Facilities Authority Rev. (Union Colony School Project), 5%, 4/01/2048 | 365,000 | 402,719 | ||||||
Colorado Educational & Cultural Facilities Authority Rev. (Union Colony School Project), 5%, 4/01/2053 | 385,000 | 421,425 | ||||||
Colorado Health Facilities Authority Rev. (Adventist System/Sunbelt Obligated Group), “A”, 5%, 11/15/2041 | 10,000,000 | 11,201,500 | ||||||
Colorado Health Facilities Authority Rev. (Covenant Retirement Communities, Inc. Project), “A”, 5%, 12/01/2035 | 1,985,000 | 2,169,446 | ||||||
Colorado Health Facilities Authority Rev. (Evangelical Lutheran Good Samaritan Society), 5.625%, 6/01/2043 | 1,195,000 | 1,337,838 | ||||||
Colorado Health Facilities Authority Rev. (SCL Health System), “A”, 5%, 1/01/2044 | 4,620,000 | 5,055,527 | ||||||
Colorado Health Facilities Authority Rev., Improvement Bonds (Frasier Meadows Retirement Community Project), “B”, 5%, 5/15/2039 | 360,000 | 376,492 | ||||||
Colorado Health Facilities Authority Rev., Improvement Bonds (Frasier Meadows Retirement Community Project), “B”, 5%, 5/15/2048 | 2,420,000 | 2,520,648 | ||||||
Colorado High Performance Transportation Enterprise Rev. (C-470 Express Lanes), 5%, 12/31/2056 | 1,900,000 | 2,057,928 | ||||||
Colorado Housing & Finance Authority, Solid Waste Rev. (Waste Management, Inc.), 5.7%, 7/01/2018 | 4,840,000 | 4,894,111 | ||||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6.5%, 1/15/2030 | 6,150,000 | 6,761,556 | ||||||
Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6%, 1/15/2034 | 5,000,000 | 5,398,550 | ||||||
Colorado Regional Transportation District, Sales Tax Rev. (Fastracks Project), “A”, 5%, 11/01/2036 | 2,755,000 | 3,180,207 |
20
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Colorado - continued | ||||||||
Colorado Regional Transportation District, Sales Tax Rev. (Fastracks Project), “A”, 5%, 11/01/2040 | $ | 10,000,000 | $ | 11,469,900 | ||||
Colorado State University Board of Governors, System Enterprise Rev., “B”, 5%, 3/01/2025 | 3,000,000 | 3,498,090 | ||||||
Colorado State University Board of Governors, System Enterprise Rev., “B”, 5%, 3/01/2041 | 1,500,000 | 1,714,110 | ||||||
Denver, CO, City & County Airport Systems Rev., “A”, 5%, 11/15/2028 | 1,930,000 | 2,134,657 | ||||||
Denver, CO, City & County School District No. 1, 5%, 12/01/2024 | 10,000,000 | 11,102,400 | ||||||
Denver, CO, City & County Special Facilities Airport Refunding Rev. (United Airlines), 5%, 10/01/2032 | 1,145,000 | 1,237,894 | ||||||
Denver, CO, Convention Center Hotel Authority Rev., 5%, 12/01/2035 | 965,000 | 1,080,723 | ||||||
Denver, CO, Convention Center Hotel Authority Rev., 5%, 12/01/2040 | 1,635,000 | 1,795,017 | ||||||
Denver, CO, Health & Hospital Authority Rev., “A”, 5.25%, 12/01/2045 | 1,210,000 | 1,300,460 | ||||||
Park Creek Metropolitan District, CO, Senior Limited Property Tax Supported Rev., “A”, 5%, 12/01/2041 | 1,465,000 | 1,624,993 | ||||||
Park Creek Metropolitan District, CO, Senior Limited Property Tax Supported Rev., “A”, NATL, 5%, 12/01/2030 | 1,470,000 | 1,672,287 | ||||||
Park Creek Metropolitan District, CO, Senior Limited Property Tax Supported Rev., “A”, NATL, 5%, 12/01/2031 | 1,660,000 | 1,883,054 | ||||||
Park Creek Metropolitan District, CO, Senior Limited Property Tax Supported Rev., “A”, NATL, 5%, 12/01/2032 | 1,755,000 | 1,986,572 | ||||||
Park Creek Metropolitan District, CO, Senior Limited Property Tax Supported Rev., “A”, NATL, 5%, 12/01/2033 | 1,760,000 | 1,985,139 | ||||||
Park Creek Metropolitan District, CO, Senior Limited Property Tax Supported Rev., “A”, NATL, 5%, 12/01/2034 | 1,445,000 | 1,625,206 | ||||||
Park Creek Metropolitan District, CO, Senior Limited Property Tax Supported Rev., “A”, NATL, 5%, 12/01/2035 | 1,630,000 | 1,828,061 | ||||||
Park Creek Metropolitan District, CO, Senior Limited Property Tax Supported Rev., “A”, NATL, 5%, 12/01/2045 | 5,280,000 | 5,875,478 | ||||||
Public Authority for Colorado Energy Natural Gas Purchase Rev., 6.25%, 11/15/2028 | 1,215,000 | 1,517,681 | ||||||
University of Colorado, Enterprise Rev., 5%, 6/01/2029 (Prerefunded 6/01/2021) | 4,220,000 | 4,631,703 | ||||||
|
| |||||||
$ | 130,253,322 | |||||||
Connecticut - 1.5% | ||||||||
Connecticut Health & Educational Facilities Authority Rev. (Church Home of Hartford, Inc. Project), “B-2”, 2.875%, 9/01/2020 | $ | 270,000 | $ | 270,219 | ||||
Connecticut Health & Educational Facilities Authority Rev. (Masonicare), “F”, 5%, 7/01/2025 | 2,990,000 | 3,358,009 |
21
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Connecticut - continued | ||||||||
Connecticut Health & Educational Facilities Authority Rev. (Masonicare), “F”, 5%, 7/01/2037 | $ | 1,270,000 | $ | 1,375,054 | ||||
Connecticut Health & Educational Facilities Authority Rev. (Masonicare), “F”, 5%, 7/01/2043 | 4,230,000 | 4,542,766 | ||||||
Connecticut Housing Finance Authority Rev., (Housing Mortgage Finance Program), “B-2”, 4%, 11/15/2032 | 1,785,000 | 1,844,708 | ||||||
Connecticut Housing Finance Authority Rev., (Housing Mortgage Finance Program), “C-1”, 3.5%, 11/15/2045 | 2,920,000 | 3,007,250 | ||||||
Connecticut Housing Finance Authority Rev., (Housing Mortgage Finance Program), “D-1”, 4%, 11/15/2044 | 1,910,000 | 1,972,935 | ||||||
Hartford County Metropolitan District, CT, “C”, AGM, 5%, 11/01/2028 | 4,290,000 | 5,001,625 | ||||||
Hartford County Metropolitan District, CT, “C”, AGM, 5%, 11/01/2029 | 2,375,000 | 2,755,214 | ||||||
Hartford County Metropolitan District, CT, “C”, AGM, 5%, 11/01/2030 | 2,355,000 | 2,722,333 | ||||||
Hartford County Metropolitan District, CT, “C”, AGM, 5%, 11/01/2031 | 2,015,000 | 2,321,038 | ||||||
Mohegan Tribal Finance Authority, CT, Economic Development Bonds, 7%, 2/01/2045 (n) | 4,655,000 | 4,924,850 | ||||||
State of Connecticut, Special Tax Obligation Rev., “A”, 5%, 12/01/2028 | 4,595,000 | 4,984,288 | ||||||
State of Connecticut, Special Tax Obligation Rev., “A”, 5%, 12/01/2029 | 4,595,000 | 4,975,926 | ||||||
State of Connecticut, Special Tax Obligation Rev., “A”, 5%, 12/01/2030 | 4,615,000 | 4,995,922 | ||||||
|
| |||||||
$ | 49,052,137 | |||||||
Delaware - 0.0% | ||||||||
Delaware Economic Development Authority (Newark Charter School, Inc.), 5%, 9/01/2036 | $ | 235,000 | $ | 254,421 | ||||
Delaware Economic Development Authority (Newark Charter School, Inc.), 5%, 9/01/2046 | 475,000 | 508,625 | ||||||
|
| |||||||
$ | 763,046 | |||||||
District of Columbia - 0.9% | ||||||||
District of Columbia Rev. (Friendship Public Charter School), “A”, 5%, 6/01/2036 | $ | 2,355,000 | $ | 2,596,764 | ||||
District of Columbia Rev. (Friendship Public Charter School), “A”, 5%, 6/01/2046 | 630,000 | 689,063 | ||||||
District of Columbia Rev. (Georgetown University), 5%, 4/01/2035 | 3,000,000 | 3,421,680 | ||||||
District of Columbia Rev. (Kipp, D.C. Charter School),“A”, 6%, 7/01/2033 (Prerefunded 7/01/2023) | 560,000 | 665,146 |
22
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
District of Columbia - continued | ||||||||
District of Columbia Rev. (Kipp, D.C. Charter School),“A”, 6%, 7/01/2043 (Prerefunded 7/01/2023) | $ | 1,450,000 | $ | 1,722,252 | ||||
District of Columbia Rev. (Methodist Home of the District of | ||||||||
Columbia Issue), 4.5%, 1/01/2025 | 210,000 | 206,749 | ||||||
District of Columbia Rev. (Methodist Home of the District of | ||||||||
Columbia Issue), “A”, 5.125%, 1/01/2035 | 240,000 | 231,739 | ||||||
District of Columbia Rev. (Methodist Home of the District of | ||||||||
Columbia Issue), “A”, 5.25%, 1/01/2039 | 150,000 | 145,020 | ||||||
District of Columbia Student Dormitory Rev. (Provident Group - | ||||||||
Howard Properties LLC), 5%, 10/01/2030 | 3,235,000 | 3,309,405 | ||||||
District of Columbia Student Dormitory Rev. (Provident Group - Howard Properties LLC), 5%, 10/01/2035 | 4,080,000 | 4,138,956 | ||||||
District of Columbia University Rev. (Georgetown University), Convertible Capital Appreciation, BHAC, 0% to 4/01/2018, 5% to 4/01/2040 | 11,570,000 | 12,328,529 | ||||||
|
| |||||||
$ | 29,455,303 | |||||||
Florida - 2.9% | ||||||||
Arborwood Community Development District, FL, Capital Improvement Rev., “A-1”, 6.9%, 5/01/2036 | $ | 20,000 | $ | 22,425 | ||||
Bellalago, FL, Educational Facilities Benefit District (Osceola County) Capital Improvement Refunding Rev., 4.375%, 5/01/2030 | 1,045,000 | 1,099,915 | ||||||
Bellalago, FL, Educational Facilities Benefit District (Osceola County) Capital Improvement Refunding Rev., 4.5%, 5/01/2033 | 485,000 | 512,150 | ||||||
Bellalago, FL, Educational Facilities Benefit District (Osceola County) Capital Improvement Refunding Rev., 4.6%, 5/01/2034 | 1,405,000 | 1,490,494 | ||||||
Capital Region Community Development District, FL, Capital Improvement Rev., “A”, 7%, 5/01/2039 | 805,000 | 808,341 | ||||||
Capital Region Community Development District, FL, Capital Improvement Rev., “A-1”, 4.125%, 5/01/2023 | 100,000 | 100,142 | ||||||
Capital Region Community Development District, FL, Capital Improvement Rev., “A-1”, 4.625%, 5/01/2028 | 100,000 | 100,332 | ||||||
Capital Region Community Development District, FL, Capital Improvement Rev., “A-1”, 5.125%, 5/01/2039 | 625,000 | 627,413 | ||||||
Capital Trust Agency Rev. (Aero Miami FX LLC), “A”, 5.35%, 7/01/2029 | 3,220,000 | 3,350,152 | ||||||
Collier County, FL, Educational Facilities Authority Rev. (Ave Maria University, Inc. Project), “A”, 6.125%, 6/01/2043 | 5,850,000 | 6,339,060 | ||||||
Collier County, FL, Industrial Development Authority Continuing Care Community Rev. (The Arlington of Naples Project), “A”, 6.25%, 5/15/2035 | 100,000 | 100,162 | ||||||
Collier County, FL, Industrial Development Authority Continuing Care Community Rev. (The Arlington of Naples Project), “A”, 7.75%, 5/15/2035 | 835,000 | 923,644 |
23
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Florida - continued | ||||||||
Collier County, FL, Industrial Development Authority Continuing Care Community Rev. (The Arlington of Naples Project), “A”, 8.125%, 5/15/2044 | $ | 1,265,000 | $ | 1,421,430 | ||||
Collier County, FL, Industrial Development Authority Continuing Care Community Rev. (The Arlington of Naples Project), “A”, 6.5%, 5/15/2049 | 180,000 | 180,999 | ||||||
Collier County, FL, Industrial Development Authority Continuing Care Community Rev. (The Arlington of Naples Project), “B”, 5.25%, 5/15/2022 | 245,000 | 245,549 | ||||||
Daytona Beach, FL, Halifax Hospital Medical Center Rev., 5%, 6/01/2029 | 1,350,000 | 1,512,621 | ||||||
Daytona Beach, FL, Halifax Hospital Medical Center Rev., 5%, 6/01/2030 | 1,420,000 | 1,583,328 | ||||||
Florida Board of Education, Capital Outlay, “E”, 5%, 6/01/2023 (Prerefunded 6/01/2019) | 250,000 | 262,160 | ||||||
Florida Development Finance Corp. Educational Facilities Rev. (Renaissance Charter School), “A”, 6%, 9/15/2030 | 2,425,000 | 2,545,741 | ||||||
Florida Development Finance Corp. Educational Facilities Rev. (Renaissance Charter School), “A”, 6%, 9/15/2040 | 5,130,000 | 5,339,099 | ||||||
Florida Development Finance Corp. Educational Facilities Rev. (Southwest Charter Foundation, Inc. Project), “A”, 6%, 6/15/2037 | 305,000 | 302,225 | ||||||
Florida Development Finance Corp. Educational Facilities Rev. (Southwest Charter Foundation, Inc. Project), “A”, 6.125%, 6/15/2047 | 785,000 | 778,061 | ||||||
Florida Housing Finance Corp, Homeowner Mortgage Rev. (Special Program), “A”, FHLMC, 3.5%, 7/01/2046 | 1,560,000 | 1,625,083 | ||||||
Florida Housing Finance Corp, Homeowner Mortgage Rev. (Special Program), “B”, 3%, 7/01/2045 | 2,475,000 | 2,514,154 | ||||||
Florida Municipal Power Agency Rev., 5%, 10/01/2031 (Prerefunded 10/01/2018) | 850,000 | 864,561 | ||||||
Florida Municipal Power Agency Rev., All Requirements, “A”, 6.25%, 10/01/2031 (Prerefunded 10/01/2019) | 400,000 | 427,052 | ||||||
Florida Municipal Power Agency Rev., Unrefunded Balance, 5%, 10/01/2031 | 150,000 | 152,277 | ||||||
Florida State University Board of Governors, System Improvement Rev., 6.25%, 7/01/2030 (Prerefunded 7/01/2018) | 2,685,000 | 2,742,459 | ||||||
Hillsborough County, FL, Industrial Development Authority Rev. (University Community Hospital), “A”, 5.625%, 8/15/2029 (Prerefunded 8/15/2018) | 300,000 | 304,512 | ||||||
Hillsborough County, FL, Industrial Development Authority Rev. (University Community Hospital), ETM, NATL, 6.5%, 8/15/2019 | 435,000 | 451,495 | ||||||
Hillsborough County, FL, Industrial Development Authority, Pollution Control Rev. (Tampa Electric Co.), “A”, 5.65%, 5/15/2018 | 500,000 | 502,235 |
24
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Florida - continued | ||||||||
Homestead 50, FL, Community Development District, Special Assessment, “A”, 6%, 5/01/2037 | $ | 1,345,000 | $ | 1,317,427 | ||||
Lakeland, FL, Hospital Rev. (Lakeland Regional Health Systems), 5%, 11/15/2034 | 1,935,000 | 2,144,793 | ||||||
Lakewood Ranch Stewardship District, FL, Special Assessment Rev. (Lakewood Centre North Project), 4.25%, 5/01/2025 | 305,000 | 308,941 | ||||||
Lakewood Ranch Stewardship District, FL, Special Assessment Rev. (Lakewood Centre North Project), 4.875%, 5/01/2035 | 125,000 | 127,506 | ||||||
Lakewood Ranch Stewardship District, FL, Special Assessment Rev. (Lakewood Centre North Project), 4.875%, 5/01/2045 | 200,000 | 201,242 | ||||||
Lakewood Ranch Stewardship District, FL, Special Assessment Rev. (Lakewood National and Polo Run Projects), 5.375%, 5/01/2047 | 605,000 | 640,834 | ||||||
Main Street, FL, Community Development District Rev., “A”, 6.8%, 5/01/2038 (Prerefunded 5/01/2018) | 210,000 | 210,840 | ||||||
Main Street, FL, Community Development District Rev., “A”, 6.8%, 5/01/2038 | 260,000 | 260,125 | ||||||
Marshall Creek Community Development District, FL, Capital Improvement and Special Assessment, “A”, 3.5%, 5/01/2020 | 1,030,000 | 1,030,196 | ||||||
Miami Beach, FL, Health Facilities Authority Rev. (Mount Sinai Medical Center), 5%, 11/15/2039 | 2,000,000 | 2,129,540 | ||||||
Miami-Dade County, FL, Aviation Rev., “B”, AGM, 5%, 10/01/2035 | 5,885,000 | 6,275,411 | ||||||
Miami-Dade County, FL, Health Facilities Authority Hospital Rev., 6.125%, 8/01/2042 (Prerefunded 8/01/2020) | 1,645,000 | 1,802,081 | ||||||
Miami-Dade County, FL, Health Facilities Authority Hospital Rev., Unrefunded Balance, 6.125%, 8/01/2042 | 595,000 | 643,171 | ||||||
Miami-Dade County, FL, School Board, COP, “B”, ASSD GTY, 5%, 5/01/2033 | 500,000 | 501,345 | ||||||
Miami-Dade County, FL, Water & Sewer Rev., AGM, 5%, 10/01/2039 (Prerefunded 10/01/2020) | 1,000,000 | 1,078,480 | ||||||
Mid-Bay Bridge Authority Rev., FL, Springing Lien, “A”, 7.25%, 10/01/2040 (Prerefunded 10/01/2021) | 6,920,000 | 8,117,229 | ||||||
Middle Village Community Development District, FL, Special Assessment, “A”, 5.8%, 5/01/2022 | 35,000 | 32,337 | ||||||
Midtown Miami, FL, Community Development District Special Assessment (Infrastructure Project), “B”, 5%, 5/01/2029 | 280,000 | 296,038 | ||||||
Midtown Miami, FL, Community Development District Special Assessment (Infrastructure Project), “B”, 5%, 5/01/2037 | 135,000 | 142,044 | ||||||
Midtown Miami, FL, Community Development District Special Assessment (Parking Garage Project), “A”, 5%, 5/01/2037 | 230,000 | 242,001 | ||||||
North Broward, FL, Hospital District Rev. (Broward Health), “B”, 5%, 1/01/2042 | 5,785,000 | 6,175,487 | ||||||
Orlando, FL, Senior Tourist Development Tax Refunding Rev. (6th Cent Contract Payments), “A”, AGM, 5%, 11/01/2035 | 1,115,000 | 1,271,513 |
25
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Florida - continued | ||||||||
Orlando, FL, Senior Tourist Development Tax Refunding Rev. (6th Cent Contract Payments), “A”, AGM, 5%, 11/01/2036 | $ | 1,010,000 | $ | 1,149,097 | ||||
Orlando, FL, Senior Tourist Development Tax Refunding Rev. (6th Cent Contract Payments), “A”, AGM, 5%, 11/01/2037 | 845,000 | 959,151 | ||||||
Orlando, FL, Senior Tourist Development Tax Refunding Rev. (6th Cent Contract Payments), “A”, AGM, 5%, 11/01/2038 | 980,000 | 1,110,663 | ||||||
Palm Beach County, FL, Health Facilities Rev. (Sinai Residences of Boca Raton Project), 7.5%, 6/01/2049 | 430,000 | 500,017 | ||||||
Palm Beach County, FL, Solid Waste Authority Improvement Rev., BHAC, 5%, 10/01/2027 (Prerefunded 10/01/2019) | 295,000 | 309,529 | ||||||
Parkway Center Community Development District, FL, Special Assessment, “B”, 7%, 5/01/2023 | 45,000 | 45,974 | ||||||
Pinellas County, FL, Sewer Rev., AGM, 5%, 10/01/2032 | 330,000 | 330,832 | ||||||
Sarasota County, FL, Health Facility Authority Retirement Facility Improvement Rev. (Village on the Isle Project), “A”, 5%, 1/01/2037 | 660,000 | 721,123 | ||||||
Sarasota County, FL, Health Facility Authority Retirement Facility Improvement Rev. (Village on the Isle Project), “A”, 5%, 1/01/2042 | 780,000 | 850,106 | ||||||
Sarasota County, FL, Health Facility Authority Retirement Facility Improvement Rev. (Village on the Isle Project), “A”, 5%, 1/01/2047 | 1,195,000 | 1,298,487 | ||||||
Sarasota County, FL, Health Facility Authority Retirement Facility Improvement Rev. (Village on the Isle Project), “A”, 5%, 1/01/2052 | 2,195,000 | 2,374,375 | ||||||
South Broward, FL, Hospital District Rev., 5%, 5/01/2036 (Prerefunded 5/01/2018) | 500,000 | 501,365 | ||||||
South Lake County, FL, Hospital District Rev. (South Lake Hospital), “A”, 6%, 4/01/2029 | 1,025,000 | 1,060,117 | ||||||
St. John’s County, FL, Industrial Development Authority Rev. (Bayview Project), “A”, 5.2%, 10/01/2027 | 150,000 | 140,996 | ||||||
St. John’s County, FL, Industrial Development Authority Rev. (Presbyterian Retirement), “A”, 6%, 8/01/2045 (Prerefunded 8/01/2020) | 6,795,000 | 7,440,933 | ||||||
Sterling Hill Community Development District, FL, Capital Improvement Rev., “B”, 5.5%, 11/01/2010 (d) | 52,264 | 33,449 | ||||||
Sumter County, FL, Industrial Development Authority Hospital Rev. (Central Florida Health Alliance Projects), “A”, 5%, 7/01/2026 | 245,000 | 273,682 | ||||||
Sumter County, FL, Industrial Development Authority Hospital Rev. (Central Florida Health Alliance Projects), “A”, 5%, 7/01/2029 | 225,000 | 247,824 | ||||||
Sumter County, FL, Industrial Development Authority Hospital Rev. (Central Florida Health Alliance Projects), “A”, 5.125%, 7/01/2034 | 485,000 | 528,034 | ||||||
Sumter County, FL, Industrial Development Authority Hospital Rev. (Central Florida Health Alliance Projects), “A”, 5.25%, 7/01/2044 | 1,455,000 | 1,579,286 |
26
Table of Contents
Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Florida - continued | ||||||||
Tuscany Reserve Community Development District, FL, Special Assessment, “B”, 5.25%, 5/01/2021 | $ | 45,000 | $ | 45,212 | ||||
Watergrass Community Development District, FL, Special Assessment, “B”, 6.96%, 11/01/2017 (d) | 3,815 | 3,624 | ||||||
|
| |||||||
$ | 95,681,728 | |||||||
Georgia - 2.6% | ||||||||
Americus and Sumter County, GA, Hospital Authority Rev. (Magnolia Manor Obligated Group), “A”, 6.25%, 5/15/2033 | $ | 965,000 | $ | 1,061,703 | ||||
Americus and Sumter County, GA, Hospital Authority Rev. (Magnolia Manor Obligated Group), “A”, 6.375%, 5/15/2043 | 965,000 | 1,058,817 | ||||||
Atlanta, GA, Airport Rev., “B”, 5%, 1/01/2025 | 1,415,000 | 1,563,051 | ||||||
Atlanta, GA, Airport Rev., “B”, 5%, 1/01/2026 | 800,000 | 881,880 | ||||||
Atlanta, GA, Water & Wastewater Rev., “A”, 6%, 11/01/2022 (Prerefunded 11/01/2019) | 2,770,000 | 2,954,150 | ||||||
Clayton County, GA, Development Authority Special Facilities Rev. (Delta Airlines, Inc.), “A”, 8.75%, 6/01/2029 | 1,295,000 | 1,460,954 | ||||||
Cobb County, GA, Development Authority Student Housing Rev. (Kennesaw State University Real Estate Foundations), “C”, 5%, 7/15/2030 | 650,000 | 704,776 | ||||||
Cobb County, GA, Development Authority Student Housing Rev. (Kennesaw State University Real Estate Foundations), “C”, 5%, 7/15/2033 | 1,140,000 | 1,223,266 | ||||||
DeKalb County, GA, Hospital Authority Rev. (DeKalb Medical Center, Inc.), 6.125%, 9/01/2040 | 4,850,000 | 5,195,174 | ||||||
DeKalb County, GA, Water & Sewer Rev., “A”, 5.25%, 10/01/2028 | 5,285,000 | 5,865,716 | ||||||
DeKalb County, GA, Water & Sewer Rev., “A”, 5.25%, 10/01/2029 | 1,415,000 | 1,569,971 | ||||||
DeKalb County, GA, Water & Sewer Rev., “A”, 5.25%, 10/01/2030 | 4,345,000 | 4,817,779 | ||||||
DeKalb County, GA, Water & Sewer Rev., “A”, 5.25%, 10/01/2041 | 3,910,000 | 4,304,832 | ||||||
Fulton County, GA, Development Authority Rev. (Piedmont Healthcare, Inc.), “A”, 5%, 7/01/2046 | 9,100,000 | 10,069,787 | ||||||
Fulton County, GA, Water & Sewer Rev., 5%, 1/01/2026 | 3,680,000 | 3,979,442 | ||||||
Fulton County, GA, Water & Sewer Rev., 5%, 1/01/2027 | 2,285,000 | 2,469,651 | ||||||
Georgia Housing & Finance Authority Rev., Single Family Mortgage, “A”, 4%, 12/01/2047 | 3,685,000 | 3,890,365 | ||||||
Georgia Housing & Finance Authority Rev., Single Family Mortgage, “A-1”, 4%, 6/01/2044 | 1,360,000 | 1,412,142 | ||||||
Georgia Main Street Natural Gas, Inc., Gas Project Rev., “A”, 5%, 3/15/2022 | 4,545,000 | 4,998,546 | ||||||
Georgia Main Street Natural Gas, Inc., Gas Project Rev., “A”, 5.5%, 9/15/2026 | 845,000 | 1,001,629 | ||||||
Georgia Main Street Natural Gas, Inc., Gas Project Rev., “A”, 5.5%, 9/15/2028 | 1,740,000 | 2,093,063 |
27
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Georgia - continued | ||||||||
Georgia Municipal Electric Authority Power Rev., “GG”, 5%, 1/01/2026 | $ | 3,065,000 | $ | 3,405,675 | ||||
Glynn-Brunswick, GA, Memorial Hospital Authority Rev., Unrefunded Balance, 5.625%, 8/01/2034 | 130,000 | 131,466 | ||||||
Hall County and Gainesville, GA, Hospital Authority Rev. (Northeast Georgia Health System, Inc.), “A”, 5%, 2/15/2042 | 4,000,000 | 4,440,920 | ||||||
Hall County and Gainesville, GA, Hospital Authority Rev. (Northeast Georgia Health System, Inc.), “A”, 5%, 2/15/2045 | 5,000,000 | 5,539,150 | ||||||
Hall County and Gainesville, GA, Hospital Authority Rev. (Northeast Georgia Health System, Inc.), “A”, 5.5%, 8/15/2054 | 4,215,000 | 4,864,363 | ||||||
Marietta, GA, Development Facilities Authority Rev. (Life University, Inc. Project), 7%, 6/15/2030 (Prerefunded 6/15/2018) | 540,000 | 545,810 | ||||||
Marietta, GA, Development Facilities Authority Rev. (Life University, Inc. Project), 7%, 6/15/2039 (Prerefunded 6/15/2018) | 645,000 | 651,940 | ||||||
Marietta, GA, Development Facilities Authority Rev. (Life University, Inc. Project), “A”, 5%, 11/01/2037 | 590,000 | 627,365 | ||||||
Marietta, GA, Development Facilities Authority Rev. (Life University, Inc. Project), “A”, 5%, 11/01/2047 | 405,000 | 424,132 | ||||||
Metropolitan Atlanta, GA, Rapid Transit Authority Rev., ETM, 6.25%, 7/01/2018 | 705,000 | 712,974 | ||||||
Rockdale County, GA, Development Authority Project Rev. (Visy Paper Project), “A”, 6.125%, 1/01/2034 | 2,055,000 | 2,058,555 | ||||||
|
| |||||||
$ | 85,979,044 | |||||||
Guam - 0.1% | ||||||||
Guam Government Business Privilege Tax Rev., “A”, 5.25%, 1/01/2036 | $ | 545,000 | $ | 567,438 | ||||
Guam Government, “A”, 7%, 11/15/2039 (Prerefunded 11/15/2019) | 910,000 | 984,583 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5.25%, 7/01/2020 | 130,000 | 137,517 | ||||||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5.25%, 7/01/2021 | 370,000 | 398,867 | ||||||
|
| |||||||
$ | 2,088,405 | |||||||
Hawaii - 1.0% | ||||||||
Hawaii Housing & Community Development Corp., HI, Rental Housing System Rev., “A”, 4.65%, 1/01/2029 | $ | 7,795,000 | $ | 7,810,746 | ||||
Hawaii Housing & Community Development Corp., HI, Rental Housing System Rev., “A”, 4.75%, 1/01/2033 | 9,390,000 | 9,409,907 | ||||||
Hawaii Department of Budget & Finance, Special Purpose Rev. (15 Craigside Project), “A”, 8.75%, 11/15/2029 (Prerefunded 11/15/2019) | 330,000 | 364,884 |
28
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Hawaii - continued | ||||||||
Hawaii Department of Budget & Finance, Special Purpose Rev. (15 Craigside Project), “A”, 9%, 11/15/2044 (Prerefunded 11/15/2019) | $ | 1,100,000 | $ | 1,224,476 | ||||
Hawaii Department of Budget & Finance, Special Purpose Rev. (Hawaiian Electric Co. & Subsidiary), 6.5%, 7/01/2039 | 3,655,000 | 3,850,433 | ||||||
State of Hawaii, “DZ”, 5%, 12/01/2031 (Prerefunded 12/01/2021) | 1,380,000 | 1,526,956 | ||||||
State of Hawaii, “DZ”, 5%, 12/01/2031 (Prerefunded 12/01/2021) | 850,000 | 943,704 | ||||||
State of Hawaii, Highway Rev., “A”, 5%, 1/01/2030 (Prerefunded 1/01/2022) | 3,695,000 | 4,102,780 | ||||||
State of Hawaii, Highway Rev., “A”, 5%, 1/01/2031 | 1,380,000 | 1,517,062 | ||||||
State of Hawaii, Highway Rev., “A”, 5%, 1/01/2032 | 920,000 | 1,007,556 | ||||||
|
| |||||||
$ | 31,758,504 | |||||||
Illinois - 11.8% | ||||||||
Chicago, IL, “A”, 5.25%, 1/01/2028 | $ | 345,000 | $ | 366,190 | ||||
Chicago, IL, “A”, 5%, 1/01/2036 | 1,110,000 | 1,135,486 | ||||||
Chicago, IL, “A”, AGM, 5%, 1/01/2027 | 200,000 | 201,354 | ||||||
Chicago, IL, “A”, AGM, 5%, 1/01/2028 | 7,700,000 | 8,045,114 | ||||||
Chicago, IL, “A”, AGM, 4.75%, 1/01/2030 | 245,000 | 245,804 | ||||||
Chicago, IL, “A”, AGM, 4.625%, 1/01/2031 | 505,000 | 506,601 | ||||||
Chicago, IL, “A”, AGM, 5%, 1/01/2037 | 3,295,000 | 3,317,307 | ||||||
Chicago, IL, “A”, Capital Appreciation, NATL, 0%, 1/01/2027 | 1,490,000 | 1,023,600 | ||||||
Chicago, IL, “C”, NATL, 5%, 1/01/2028 | 165,000 | 165,218 | ||||||
Chicago, IL, “C”, NATL, 5%, 1/01/2029 | 3,025,000 | 3,028,993 | ||||||
Chicago, IL, “D”, 5.5%, 1/01/2033 | 935,000 | 997,767 | ||||||
Chicago, IL, (Modern Schools Across Chicago Program), “A”, AMBAC, 5%, 12/01/2024 | 2,165,000 | 2,172,188 | ||||||
Chicago, IL, (Modern Schools Across Chicago Program), “D”, AMBAC, 5%, 12/01/2022 | 2,710,000 | 2,719,024 | ||||||
Chicago, IL, (Modern Schools Across Chicago Program), “G”, AMBAC, 5%, 12/01/2023 | 575,000 | 576,938 | ||||||
Chicago, IL, (Modern Schools Across Chicago Program), “H”, AMBAC, 5%, 12/01/2020 | 1,635,000 | 1,640,494 | ||||||
Chicago, IL, (Modern Schools Across Chicago Program), “H”, AMBAC, 5%, 12/01/2021 | 1,030,000 | 1,033,461 | ||||||
Chicago, IL, Board of Education (School Reform), “A”, NATL, 5.25%, 12/01/2023 | 6,805,000 | 7,400,846 | ||||||
Chicago, IL, Board of Education (School Reform), Capital Appreciation, “A”, NATL, 0%, 12/01/2022 | 1,405,000 | 1,165,504 | ||||||
Chicago, IL, Board of Education (School Reform), Capital Appreciation, “A”, NATL, 0%, 12/01/2023 | 1,205,000 | 954,468 | ||||||
Chicago, IL, Board of Education (School Reform), Capital Appreciation, “A”, NATL, 0%, 12/01/2028 | 9,895,000 | 6,144,201 |
29
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Illinois - continued | ||||||||
Chicago, IL, Board of Education (School Reform), Capital Appreciation, “A”, NATL, 0%, 12/01/2029 | $ | 3,290,000 | $ | 1,935,869 | ||||
Chicago, IL, Board of Education (School Reform), Capital Appreciation, “A”, NATL, 0%, 12/01/2030 | 1,335,000 | 744,129 | ||||||
Chicago, IL, Board of Education (School Reform), Capital Appreciation, “B-1”, NATL, 0%, 12/01/2019 | 825,000 | 783,899 | ||||||
Chicago, IL, Board of Education (School Reform), Capital Appreciation, “B-1”, NATL, 0%, 12/01/2022 | 645,000 | 535,053 | ||||||
Chicago, IL, Board of Education (School Reform), Capital Appreciation, “B-1”, NATL, 0%, 12/01/2023 | 14,590,000 | 11,556,593 | ||||||
Chicago, IL, Board of Education (School Reform), Capital Appreciation, “B-1”, NATL, 0%, 12/01/2026 | 3,405,000 | 2,333,651 | ||||||
Chicago, IL, Board of Education (School Reform), Capital Appreciation, “B-1”, NATL, 0%, 12/01/2028 | 3,895,000 | 2,418,561 | ||||||
Chicago, IL, Board of Education, “B”, AGM, 5%, 12/01/2027 | 2,470,000 | 2,495,540 | ||||||
Chicago, IL, Board of Education, “B”, AGM, 5%, 12/01/2035 | 3,955,000 | 3,995,855 | ||||||
Chicago, IL, Board of Education, “C”, AGM, 5%, 12/01/2032 | 8,315,000 | 8,503,917 | ||||||
Chicago, IL, Board of Education, “C”, ASSD GTY, 5.25%, 12/01/2025 | 5,855,000 | 6,006,235 | ||||||
Chicago, IL, Board of Education, Dedicated Capital Improvement Tax Bond, 5%, 4/01/2033 | 270,000 | 294,489 | ||||||
Chicago, IL, Board of Education, Dedicated Capital Improvement Tax Bond, 5%, 4/01/2042 | 1,785,000 | 1,917,340 | ||||||
Chicago, IL, Board of Education, Dedicated Capital Improvement Tax Bond, 5%, 4/01/2046 | 1,620,000 | 1,735,052 | ||||||
Chicago, IL, Board of Education, Dedicated Capital Improvement Tax Bond, 6%, 4/01/2046 | 14,285,000 | 16,725,592 | ||||||
Chicago, IL, Board of Education, Unlimited Tax General Obligation Refunding Dedicated Rev., “A-3”, 2.41% (MUNIPSA + 0.83%), 3/01/2036 (Put Date 6/04/2018) | 12,270,000 | 12,257,116 | ||||||
Chicago, IL, Board of Education, Unlimited Tax General Obligation Refunding Dedicated Rev., “G”, 5%, 12/01/2034 | 1,205,000 | 1,207,663 | ||||||
Chicago, IL, Board of Education, Unlimited Tax General Obligation Refunding Dedicated Rev., “H”, 5%, 12/01/2036 | 1,205,000 | 1,191,950 | ||||||
Chicago, IL, Board of Education, Unlimited Tax General Obligation Refunding Dedicated Rev., “H”, 5%, 12/01/2046 | 1,175,000 | 1,133,323 | ||||||
Chicago, IL, City Colleges of Chicago Capital Improvement Project, Capital Appreciation, NATL, 0%, 1/01/2026 | 9,690,000 | 6,975,250 | ||||||
Chicago, IL, City Colleges of Chicago Capital Improvement Project, Capital Appreciation, NATL, 0%, 1/01/2027 | 1,820,000 | 1,250,304 | ||||||
Chicago, IL, General Obligation, “A”, 6%, 1/01/2038 | 3,755,000 | 4,212,997 | ||||||
Chicago, IL, General Obligation, “A”, AGM, 5.25%, 1/01/2031 | 1,000,000 | 1,100,130 | ||||||
Chicago, IL, General Obligation, “A”, AMBAC, 5.5%, 12/01/2019 | 350,000 | 363,482 |
30
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Illinois - continued | ||||||||
Chicago, IL, Greater Chicago Metropolitan Water Reclamation District, “C”, 5%, 12/01/2029 | $ | 9,145,000 | $ | 10,061,055 | ||||
Chicago, IL, Midway Airport Rev., Second Lien, “A”, BAM, 5%, 1/01/2031 | 1,525,000 | 1,685,613 | ||||||
Chicago, IL, O’Hare International Airport Rev., Special Facilities, 5%, 7/01/2033 | 745,000 | 829,453 | ||||||
Chicago, IL, O’Hare International Airport Rev., Special Facilities, 5%, 7/01/2038 | 1,850,000 | 2,036,499 | ||||||
Chicago, IL, O’Hare International Airport Rev., Special Facilities, 5%, 7/01/2048 | 3,110,000 | 3,395,964 | ||||||
Chicago, IL, O’Hare International Airport Rev., Customer Facility Charge, AGM, 5.25%, 1/01/2032 | 945,000 | 1,049,819 | ||||||
Chicago, IL, O’Hare International Airport Rev., Customer Facility Charge, AGM, 5.25%, 1/01/2033 | 470,000 | 521,907 | ||||||
Chicago, IL, O’Hare International Airport Rev., Customer Facility Charge, AGM, 5.5%, 1/01/2043 | 1,890,000 | 2,117,840 | ||||||
Chicago, IL, O’Hare International Airport Rev., Senior Lien, “B”, 5%, 1/01/2030 | 2,735,000 | 3,086,201 | ||||||
Chicago, IL, O’Hare International Airport Rev., Third Lien, “A”, 5.625%, 1/01/2035 (Prerefunded 1/01/2021) | 5,520,000 | 6,078,072 | ||||||
Chicago, IL, O’Hare International Airport Rev., Third Lien, “A”, 5.625%, 1/01/2035 | 1,605,000 | 1,746,978 | ||||||
Chicago, IL, Transit Authority Sales Tax Receipts Rev., 5.25%, 12/01/2029 | 1,755,000 | 1,902,297 | ||||||
Chicago, IL, Transit Authority Sales Tax Receipts Rev., 5.25%, 12/01/2031 | 655,000 | 708,546 | ||||||
Chicago, IL, Transit Authority Sales Tax Receipts Rev., 5.25%, 12/01/2040 | 4,685,000 | 5,057,832 | ||||||
Cook County, IL, Community College District 508 (City Colleges), BAM, 5%, 12/01/2047 | 9,665,000 | 10,489,135 | ||||||
Illinois Finance Authority Refunding Rev. (Southern Illinois Healthcare Enterprises, Inc.), “C”, 5%, 3/01/2032 | 245,000 | 276,316 | ||||||
Illinois Finance Authority Refunding Rev. (Southern Illinois Healthcare Enterprises, Inc.), “C”, 5%, 3/01/2034 | 140,000 | 156,293 | ||||||
Illinois Finance Authority Rev. (Christian Homes, Inc.), 5%, 5/15/2036 | 640,000 | 675,328 | ||||||
Illinois Finance Authority Rev. (Christian Homes, Inc.), 5%, 5/15/2040 | 585,000 | 612,372 | ||||||
Illinois Finance Authority Rev. (Edward-Elmhurst Healthcare), “A”, 5%, 1/01/2034 | 2,310,000 | 2,523,444 | ||||||
Illinois Finance Authority Rev. (Edward-Elmhurst Healthcare), “A”, 5%, 1/01/2035 | 2,315,000 | 2,521,706 | ||||||
Illinois Finance Authority Rev. (Franciscan Communities, Inc.), “A”, 4.75%, 5/15/2033 | 2,180,000 | 2,266,132 |
31
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Illinois - continued | ||||||||
Illinois Finance Authority Rev. (Franciscan Communities, Inc.), “A”, 5.125%, 5/15/2043 | $ | 1,500,000 | $ | 1,576,605 | ||||
Illinois Finance Authority Rev. (KishHealth Systems Obligated Group), 5.75%, 10/01/2028 (Prerefunded 10/01/2018) | 2,990,000 | 3,050,727 | ||||||
Illinois Finance Authority Rev. (Mercy Health Corp.), 5%, 12/01/2046 | 9,235,000 | 9,999,196 | ||||||
Illinois Finance Authority Rev. (OSF Healthcare), “A”, 7%, 11/15/2029 (Prerefunded 5/15/2019) | 2,975,000 | 3,146,896 | ||||||
Illinois Finance Authority Rev. (OSF Healthcare), “A”, 7.125%, 11/15/2037 (Prerefunded 5/15/2019) | 2,445,000 | 2,589,622 | ||||||
Illinois Finance Authority Rev. (Presbyterian Homes Obligated Group), “B”, FLR, 2.515% (70% of LIBOR 1-Mo. + 1.35%), 5/01/2036 (Put Date 5/01/2021) | 885,000 | 889,319 | ||||||
Illinois Finance Authority Rev. (Presence Health Network), “A”, 7.75%, 8/15/2034 (Prerefunded 8/15/2019) | 3,650,000 | 3,945,394 | ||||||
Illinois Finance Authority Rev. (Presence Health Network), “C”, 5%, 2/15/2036 | 1,035,000 | 1,154,097 | ||||||
Illinois Finance Authority Rev. (Presence Health Network), “C”, 5%, 2/15/2041 | 1,535,000 | 1,699,291 | ||||||
Illinois Finance Authority Rev. (Rehabilitation Institute of Chicago), “A”, 6%, 7/01/2043 | 6,315,000 | 7,036,236 | ||||||
Illinois Finance Authority Rev. (Resurrection Health Care Corp.), 6.125%, 5/15/2025 (Prerefunded 5/15/2019) | 6,460,000 | 6,774,731 | ||||||
Illinois Finance Authority Rev. (Rosalind Franklin University), “A”, 5%, 8/01/2042 | 510,000 | 551,417 | ||||||
Illinois Finance Authority Rev. (Rosalind Franklin University), “A”, 5%, 8/01/2047 | 745,000 | 800,085 | ||||||
Illinois Finance Authority Rev. (Rosalind Franklin University, Research Building Project), “C”, 5%, 8/01/2046 | 615,000 | 661,463 | ||||||
Illinois Finance Authority Rev. (Rosalind Franklin University, Research Building Project), “C”, 5%, 8/01/2049 | 795,000 | 851,866 | ||||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 6.875%, 8/15/2038 (Prerefunded 8/15/2019) | 1,500,000 | 1,602,690 | ||||||
Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 7%, 8/15/2044 (Prerefunded 8/15/2019) | 2,455,000 | 2,627,194 | ||||||
Illinois Finance Authority Rev. (Southern Illinois Healthcare Enterprises, Inc.), “A”, 5%, 3/01/2047 | 10,000,000 | 10,860,200 | ||||||
Illinois Finance Authority Rev., Friendship Village of Schaumburg, 5%, 2/15/2037 | 9,810,000 | 9,609,974 | ||||||
Illinois Finance Authority Student Housing and Academic Facility Rev. (CHF-Chicago, LLC-University of Illinois at Chicago Project), “A”, 5%, 2/15/2037 | 490,000 | 527,152 |
32
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Illinois - continued | ||||||||
Illinois Finance Authority Student Housing and Academic Facility Rev. (CHF-Chicago, LLC-University of Illinois at Chicago Project), “A”, 5%, 2/15/2047 | $ | 980,000 | $ | 1,044,043 | ||||
Illinois Finance Authority Student Housing and Academic Facility Rev. (CHF-Chicago, LLC-University of Illinois at Chicago Project), “A”, 5%, 2/15/2050 | 490,000 | 520,076 | ||||||
Illinois Finance Authority Student Housing Rev. (Illinois State University), 6.75%, 4/01/2031 (Prerefunded 4/01/2021) | 2,730,000 | 3,108,515 | ||||||
Illinois Finance Authority Student Housing Rev. (Northern Illinois University Project), 6.625%, 10/01/2031 | 4,210,000 | 4,588,563 | ||||||
Illinois Railsplitter Tobacco Settlement Authority Rev., 5.5%, 6/01/2023 (Prerefunded 6/01/2021) | 4,455,000 | 4,943,223 | ||||||
Illinois Railsplitter Tobacco Settlement Authority Rev., 6%, 6/01/2028 (Prerefunded 6/01/2021) | 10,615,000 | 11,940,389 | ||||||
Illinois Sports Facilities Authority, AMBAC, 5.5%, 6/15/2030 | 1,250,000 | 1,252,038 | ||||||
Illinois Sports Facilities Authority, State Tax Supported Refunding Rev., AGM, 5%, 6/15/2027 | 1,730,000 | 1,884,489 | ||||||
Illinois Toll Highway Authority Rev., “A”, 5%, 12/01/2022 | 5,000,000 | 5,607,400 | ||||||
Madison County, IL, Edwardsville Community Unit School District #007, BAM, 4%, 12/01/2018 | 785,000 | 795,142 | ||||||
Madison County, IL, Edwardsville Community Unit School District #007, BAM, 4%, 12/01/2020 | 1,315,000 | 1,368,889 | ||||||
Madison County, IL, Edwardsville Community Unit School District #007, BAM, 5%, 12/01/2028 | 765,000 | 845,822 | ||||||
Madison County, IL, Edwardsville Community Unit School District #007, BAM, 5%, 12/01/2029 | 785,000 | 865,714 | ||||||
Metropolitan Pier & Exposition Authority Rev. (McCormick Place), “A”, BAM, 5%, 6/15/2042 | 4,550,000 | 4,812,353 | ||||||
Metropolitan Pier & Exposition Authority Rev. (McCormick Place), “A”, Capital Appreciation, AGM, 0%, 6/15/2026 | 2,400,000 | 1,741,464 | ||||||
Metropolitan Pier & Exposition Authority, Dedicated State Tax Rev. (McCormick Place), NATL, 5.5%, 6/15/2029 | 5,430,000 | 6,047,825 | ||||||
Metropolitan Pier & Exposition Authority, Dedicated State Tax Rev. Capital Appreciation, 0%, 6/15/2018 | 15,000 | 14,915 | ||||||
Metropolitan Pier & Exposition Authority, Dedicated State Tax Rev. Capital Appreciation, ETM, NATL, 0%, 6/15/2018 | 495,000 | 493,371 | ||||||
Romeoville, IL, Rev. (Lewis University Project), “A”, 5%, 10/01/2042 | 1,690,000 | 1,827,549 | ||||||
State of Illinois, 5%, 11/01/2027 | 7,130,000 | 7,415,913 | ||||||
State of Illinois, 5%, 1/01/2028 | 425,000 | 433,980 | ||||||
State of Illinois, 5%, 5/01/2028 | 870,000 | 888,696 | ||||||
State of Illinois, 5.25%, 7/01/2028 | 2,530,000 | 2,615,210 | ||||||
State of Illinois, 5%, 11/01/2028 | 2,005,000 | 2,074,173 |
33
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Illinois - continued | ||||||||
State of Illinois, 5%, 2/01/2029 | $ | 2,180,000 | $ | 2,248,932 | ||||
State of Illinois, 4.125%, 11/01/2031 | 1,720,000 | 1,601,836 | ||||||
State of Illinois, 4.5%, 11/01/2039 | 1,895,000 | 1,751,871 | ||||||
State of Illinois, AGM, 5%, 4/01/2024 | 5,000,000 | 5,465,500 | ||||||
State of Illinois, AGM, 5%, 2/01/2027 | 1,465,000 | 1,613,126 | ||||||
State of Illinois, NATL, 5%, 4/01/2021 | 3,855,000 | 3,863,095 | ||||||
State of Illinois, NATL, 6%, 11/01/2026 | 4,615,000 | 5,216,334 | ||||||
State of Illinois, “A”, 5%, 11/01/2018 | 16,185,000 | 16,412,561 | ||||||
State of Illinois, “A”, 5%, 12/01/2020 | 2,975,000 | 3,107,328 | ||||||
State of Illinois, “B”, 5%, 12/01/2020 | 1,645,000 | 1,718,170 | ||||||
State of Illinois, “B”, 5.25%, 6/15/2034 (Prerefunded 6/15/2019) | 1,275,000 | 1,329,124 | ||||||
State of Illinois, “D”, 5%, 11/01/2028 | 6,655,000 | 6,906,093 | ||||||
State of Illinois, “P“, ETM, 6.5%, 6/15/2022 | 3,120,000 | 3,327,792 | ||||||
|
| |||||||
$ | 385,959,019 | |||||||
Indiana - 1.2% | ||||||||
Indiana Economic Development Finance Authority Rev. (Republic Services, Inc. Project), 1.65%, 12/01/2037 (Put Date 6/01/2018) | $ | 1,570,000 | $ | 1,568,964 | ||||
Indiana Economic Development Finance Authority Rev. (Republic Services, Inc. Project), ”A“, FLR, 1.65%, 5/01/2034 | 5,990,000 | 5,986,046 | ||||||
Indiana Finance Authority Health Facilities Rev. (Baptist Healthcare System Obligated Group), 5%, 8/15/2051 | 3,370,000 | 3,630,973 | ||||||
Indiana Finance Authority Hospital Rev. (Deaconess Hospital, Inc.), ”A“, 6.75%, 3/01/2039 (Prerefunded 3/01/2019) | 3,000,000 | 3,134,370 | ||||||
Indiana Finance Authority Rev. (BHI Senior Living), ”A“, 6%, 11/15/2041 | 2,840,000 | 3,242,598 | ||||||
Indiana Finance Authority Rev. (Marquette Project), ”A“, 5%, 3/01/2030 | 530,000 | 575,023 | ||||||
Indiana Finance Authority Rev. (Marquette Project), ”A“, 5%, 3/01/2039 | 1,340,000 | 1,424,326 | ||||||
Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), ”A“, 5%, 7/01/2035 | 2,190,000 | 2,364,543 | ||||||
Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), ”A“, 5%, 7/01/2044 | 1,595,000 | 1,707,065 | ||||||
Indiana Finance Authority Rev. (State Revolving Fund Program), ”A“, 5%, 2/01/2029 | 4,000,000 | 4,441,520 | ||||||
Knox County, IN, Economic Development Rev. (Good Samaritan Hospital), ”A“, 5%, 4/01/2042 | 1,170,000 | 1,210,611 | ||||||
Richmond, IN, Hospital Authority Rev. (Reid Hospital & Health Center Services), ”A“, 6.625%, 1/01/2039 (Prerefunded 1/01/2019) | 4,715,000 | 4,884,080 | ||||||
St. Joseph County, IN, Educational Facilities Rev. (University of Notre Dame), 6.5%, 3/01/2026 | 1,000,000 | 1,282,990 |
34
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Indiana - continued | ||||||||
University of Southern Indiana Rev. (Student Fee), ”J“, ASSD GTY, 5.75%, 10/01/2028 (Prerefunded 10/01/2019) | $ | 1,875,000 | $ | 1,986,581 | ||||
Valparaiso, IN, Exempt Facilities Rev. (Pratt Paper LLC Project), 6.75%, 1/01/2034 | 330,000 | 387,790 | ||||||
Valparaiso, IN, Exempt Facilities Rev. (Pratt Paper LLC Project), 7%, 1/01/2044 | 755,000 | 891,376 | ||||||
|
| |||||||
$ | 38,718,856 | |||||||
Iowa - 0.7% | ||||||||
Iowa Finance Authority Health Facilities Rev. (UnityPoint Health), ”C“, 5%, 2/15/2030 | $ | 1,200,000 | $ | 1,328,868 | ||||
Iowa Finance Authority Health Facilities Rev. (UnityPoint Health), ”C“, 5%, 2/15/2031 | 2,230,000 | 2,461,898 | ||||||
Iowa Finance Authority Health Facilities Rev. (UnityPoint Health), ”C“, 5%, 2/15/2032 | 1,085,000 | 1,194,769 | ||||||
Iowa Finance Authority Rev. (Iowa Health System Obligated Group), ”A“, 5.25%, 2/15/2044 | 3,000,000 | 3,259,500 | ||||||
Iowa Student Loan Liquidity Corp. Rev., ”A-1“, 4.625%, 12/01/2019 | 1,220,000 | 1,243,009 | ||||||
Iowa Student Loan Liquidity Corp. Rev., ”A-1“, 4.875%, 12/01/2020 | 220,000 | 225,003 | ||||||
Iowa Student Loan Liquidity Corp. Rev., ”A-2“, 5.5%, 12/01/2025 | 1,000,000 | 1,048,640 | ||||||
Iowa Student Loan Liquidity Corp. Rev., ”A-2“, 5.6%, 12/01/2026 | 990,000 | 1,039,015 | ||||||
Iowa Student Loan Liquidity Corp. Rev., ”A-2“, 5.7%, 12/01/2027 | 80,000 | 83,541 | ||||||
Iowa Student Loan Liquidity Corp. Rev., ”A-2“, 5.75%, 12/01/2028 | 1,690,000 | 1,764,766 | ||||||
Iowa Tobacco Settlement Authority, Tobacco Settlement Rev., Asset Backed, ”B“, 5.6%, 6/01/2034 | 3,070,000 | 3,098,520 | ||||||
Iowa Tobacco Settlement Authority, Tobacco Settlement Rev., Asset Backed, ”C“, 5.625%, 6/01/2046 | 5,920,000 | 5,947,646 | ||||||
|
| |||||||
$ | 22,695,175 | |||||||
Kansas - 0.3% | ||||||||
Coffeyville, KS, Electric Utility System Rev., ”B“, NATL, 5%, 6/01/2038 | $ | 3,800,000 | $ | 4,108,104 | ||||
Coffeyville, KS, Electric Utility System Rev., ”B“, NATL, 5%, 6/01/2042 | 1,500,000 | 1,617,705 | ||||||
Hutchinson, KS, Hospital Facilities Rev. (Hutchinson Regional Medical Center, Inc.), 5%, 12/01/2036 | 1,295,000 | 1,385,029 | ||||||
Hutchinson, KS, Hospital Facilities Rev. (Hutchinson Regional Medical Center, Inc.), 5%, 12/01/2041 | 680,000 | 720,637 | ||||||
Wichita, KS, Sales Tax Special Obligations Rev. (K-96 Greenwich Star Bond Project), 3%, 9/01/2023 | 935,000 | 931,802 | ||||||
Wichita, KS, Sales Tax Special Obligations Rev. (K-96 Greenwich Star Bond Project), 4.2%, 9/01/2027 | 1,515,000 | 1,517,439 | ||||||
|
| |||||||
$ | 10,280,716 |
35
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Kentucky - 1.7% | ||||||||
Kentucky Economic Development Finance Authority Hospital | ||||||||
Facilities Rev. (Baptist Healthcare System), ”B, 5%, 8/15/2041 | $ | 4,235,000 | $ | 4,600,862 | ||||
Kentucky Economic Development Finance Authority Hospital | ||||||||
Facilities Rev. (Baptist Healthcare System), “B”, 5%, 8/15/2037 | 590,000 | 646,310 | ||||||
Kentucky Economic Development Finance Authority Hospital | ||||||||
Facilities Rev. (Baptist Healthcare System), “B”, 5%, 8/15/2046 | 2,685,000 | 2,903,827 | ||||||
Kentucky Economic Development Finance Authority Hospital Rev. (Baptist Healthcare System Obligated Group), “A”, 5.375%, 8/15/2024 (Prerefunded 8/15/2018) | 1,160,000 | 1,175,962 | ||||||
Kentucky Economic Development Finance Authority Hospital Rev. (Baptist Healthcare System Obligated Group), “A”, 5.625%, 8/15/2027 (Prerefunded 8/15/2018) | 385,000 | 390,648 | ||||||
Kentucky Economic Development Finance Authority Hospital Rev. (Owensboro Health, Inc.), “A”, 5%, 6/01/2037 | 2,530,000 | 2,740,496 | ||||||
Kentucky Economic Development Finance Authority Hospital Rev. (Owensboro Health, Inc.), “A”, 5%, 6/01/2041 | 1,655,000 | 1,769,013 | ||||||
Kentucky Economic Development Finance Authority Hospital Rev. (Owensboro Health, Inc.), “A”, 5.25%, 6/01/2041 | 1,290,000 | 1,412,602 | ||||||
Kentucky Economic Development Finance Authority Hospital Rev. (Owensboro Health, Inc.), “A”, 5%, 6/01/2045 | 2,070,000 | 2,202,852 | ||||||
Kentucky Economic Development Finance Authority Hospital Rev. (Owensboro Medical Health System, Inc.), “A”, 6%, 6/01/2030 (Prerefunded 6/01/2020) | 2,695,000 | 2,928,387 | ||||||
Kentucky Economic Development Finance Authority Hospital Rev. (Owensboro Medical Health System, Inc.), “A”, 6.375%, 6/01/2040 (Prerefunded 6/01/2020) | 5,500,000 | 6,019,750 | ||||||
Kentucky Economic Development Finance Authority Hospital Unrefunded Rev. (Baptist Healthcare System Obligated Group), “A”, 5.375%, 8/15/2024 | 1,145,000 | 1,158,248 | ||||||
Kentucky Economic Development Finance Authority Hospital Unrefunded Rev. (Baptist Healthcare System Obligated Group), “A”, 5.625%, 8/15/2027 | 385,000 | 390,016 | ||||||
Kentucky Economic Development Finance Authority Louisville Arena Project Rev. (Louisville Arena Authority, Inc.), “A”, AGM, 5%, 12/01/2045 | 3,390,000 | 3,733,509 | ||||||
Kentucky Economic Development Finance Authority Louisville Arena Project Rev. (Louisville Arena Authority, Inc.), “A”, AGM, 5%, 12/01/2047 | 1,895,000 | 2,063,806 | ||||||
Kentucky Economic Development Finance Authority Rev. (Masonic Home Independent Living II, Inc. - The Meadow Project and Grove Pointe Project), “A”, 2.5%, 5/15/2022 | 9,480,000 | 9,480,189 | ||||||
Kentucky Economic Development Finance Authority Solid Waste Refunding Rev. (Republic Services, Inc.), “A”, 1.65%, 4/01/2031 (Put Date 6/01/2018) | 3,310,000 | 3,310,000 |
36
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Kentucky - continued | ||||||||
Kentucky Turnpike Authority, Economic Development Road Rev. (Revitalization Projects), “A”, 5%, 7/01/2032 | $ | 2,000,000 | $ | 2,223,460 | ||||
Louisville & Jefferson County, KY, Metro Government College Rev. (Bellarmine University, Inc. Project), 6.125%, 5/01/2039 (Prerefunded 11/01/2019) | 3,000,000 | 3,207,690 | ||||||
Owen County, KY, Waterworks System Rev. (American Water Co. Project), “B”, 5.625%, 9/01/2039 | 1,670,000 | 1,752,348 | ||||||
|
| |||||||
$ | 54,109,975 | |||||||
Louisiana - 1.2% | ||||||||
Jefferson Parish, LA, Hospital Service District No. 1 Hospital Rev. (West Jefferson Medical Center), AGM, 5.25%, 1/01/2028 (Prerefunded 1/01/2020) | $ | 1,980,000 | $ | 2,139,786 | ||||
Jefferson Parish, LA, Hospital Service District No. 2 (East Jefferson General Hospital), 6.25%, 7/01/2031 | 3,355,000 | 3,453,570 | ||||||
Louisiana Citizens Property Insurance Corp. Rev., AGM, 5%, 6/01/2022 | 1,470,000 | 1,638,962 | ||||||
Louisiana Local Government, Environmental Facilities & Community Development Authority Rev. (CDF Healthcare), “A”, 5.625%, 6/01/2045 | 3,615,000 | 3,696,916 | ||||||
Louisiana Local Government, Environmental Facilities & Community Development Authority Rev. (St. James Place of Baton Rouge Project), “A”, 6%, 11/15/2035 | 580,000 | 639,868 | ||||||
Louisiana Local Government, Environmental Facilities & Community Development Authority Rev. (St. James Place of Baton Rouge Project), “A”, 6.25%, 11/15/2045 | 2,240,000 | 2,487,251 | ||||||
Louisiana Local Government, Environmental Facilities & Community Development Authority Rev. (Westlake Chemical), “A”, 6.5%, 8/01/2029 | 1,400,000 | 1,541,526 | ||||||
Louisiana Local Government, Environmental Facilities & Community Development Authority Rev. (Westlake Chemical), “A-2”, 6.5%, 11/01/2035 | 6,000,000 | 6,638,220 | ||||||
Louisiana Public Facilities Authority Hospital Rev. (Lake Charles Memorial Hospital), 6.375%, 12/01/2034 | 2,745,000 | 2,880,438 | ||||||
Louisiana Public Facilities Authority Rev., (Loyola University Project), Convertible Capital Appreciation, 0% to 10/01/2023, 5.25% to 10/01/2046 | 5,465,000 | 4,571,800 | ||||||
Louisiana Stadium & Exposition District Rev., “A”, 5%, 7/01/2023 | 1,325,000 | 1,499,344 | ||||||
Louisiana Stadium & Exposition District Rev., “A”, 5%, 7/01/2024 | 1,270,000 | 1,431,087 | ||||||
Louisiana Stadium & Exposition District Rev., “A”, 5%, 7/01/2025 | 1,000,000 | 1,124,220 | ||||||
New Orleans, LA, Aviation Board Gulf Opportunity Zone CFC Rev. (Consolidated Rental Car), “A”, 6.25%, 1/01/2030 | 1,810,000 | 1,865,802 | ||||||
New Orleans, LA, Sewerage Service Rev., 5%, 12/01/2040 | 800,000 | 881,120 |
37
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Louisiana - continued | ||||||||
St. Charles Parish, LA, Gulf Zone Opportunity Zone Rev. (Valero Energy Corp.), 4%, 12/01/2040 (Put Date 6/01/2022) | $ | 2,000,000 | $ | 2,125,960 | ||||
|
| |||||||
$ | 38,615,870 | |||||||
Maine - 0.1% | ||||||||
Maine Finance Authority Solid Waste Disposal Rev. (Casella Waste Systems, Inc.), “R-2”, 4.375%, 8/01/2035 (Put Date 8/01/2025) | $ | 415,000 | $ | 414,743 | ||||
Maine Finance Authority Solid Waste Disposal Rev. (Casella Waste Systems, Inc.), “R-3”, 5.25%, 1/01/2025 | 570,000 | 618,735 | ||||||
Maine Housing Authority Mortgage, “C-1”, 3.5%, 11/15/2044 | 3,680,000 | 3,756,176 | ||||||
|
| |||||||
$ | 4,789,654 | |||||||
Maryland - 1.6% | ||||||||
Baltimore, MD, Convention Center Hotel Rev., 5%, 9/01/2039 | $ | 1,805,000 | $ | 2,011,257 | ||||
Baltimore, MD, Convention Center Hotel Rev., 5%, 9/01/2042 | 1,605,000 | 1,777,570 | ||||||
Baltimore, MD, Convention Center Hotel Rev., 5%, 9/01/2046 | 2,575,000 | 2,841,075 | ||||||
Baltimore, MD, Special Obligation (East Baltimore Research Park Project), “A”, 5%, 9/01/2038 | 1,565,000 | 1,676,538 | ||||||
Baltimore, MD, Special Obligation (East Baltimore Research Park Project), “A”, 7%, 9/01/2038 (Prerefunded 9/01/2018) | 1,285,000 | 1,313,283 | ||||||
Baltimore, MD, Subordinate Project Rev. (Mayor and City Council of Baltimore Water Projects), “A”, 5%, 7/01/2041 | 5,000,000 | 5,665,200 | ||||||
Howard County, MD, Special Obligation (Downtown Columbia Project), “A”, 4.125%, 2/15/2034 | 150,000 | 151,250 | ||||||
Howard County, MD, Special Obligation (Downtown Columbia Project), “A”, 4.375%, 2/15/2039 | 155,000 | 157,000 | ||||||
Howard County, MD, Special Obligation (Downtown Columbia Project), “A”, 4.5%, 2/15/2047 | 1,105,000 | 1,120,304 | ||||||
Maryland Community Development Administration, Department of Housing & Community Development, “C”, 4%, 9/01/2044 | 3,845,000 | 3,984,227 | ||||||
Maryland Economic Development Corp. Adjustable Mode Rev. Refunding (Constellation Energy Group, Inc. Project), “B”, 2.55%, 12/01/2025 (Put Date 6/01/2020) | 3,385,000 | 3,392,041 | ||||||
Maryland Economic Development Corp. Refunding Rev. (Transportation Facilities Project), “A”, 5%, 6/01/2030 | 180,000 | 205,567 | ||||||
Maryland Economic Development Corp. Refunding Rev. (Transportation Facilities Project), “A”, 5%, 6/01/2032 | 125,000 | 142,173 | ||||||
Maryland Economic Development Corp. Refunding Rev. (Transportation Facilities Project), “A”, 5%, 6/01/2035 | 225,000 | 252,821 | ||||||
Maryland Economic Development Corp. Rev. (Port America Chesapeake Terminal Project), “B”, 5.375%, 6/01/2025 (Prerefunded 6/01/2020) | 795,000 | 856,016 |
38
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Maryland - continued | ||||||||
Maryland Economic Development Corp., Senior Student Housing Rev. (University of Maryland, College Park Projects), AGM, 5%, 6/01/2035 | $ | 695,000 | $ | 787,935 | ||||
Maryland Health & Higher Educational Facilities Authority Rev. (Adventist Healthcare Issue), “A”, 5.5%, 1/01/2036 | 5,090,000 | 5,826,116 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Anne Arundel Health System), “A”, 6.75%, 7/01/2039 (Prerefunded 7/01/2019) | 1,510,000 | 1,600,162 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Charlestown Community Project), 6.25%, 1/01/2041 (Prerefunded 1/01/2021) | 2,225,000 | 2,480,652 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Doctors Community Hospital), “A”, 5%, 7/01/2033 | 1,745,000 | 1,921,140 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Doctors Community Hospital), “A”, 5%, 7/01/2034 | 1,090,000 | 1,196,449 | ||||||
Maryland Health & Higher Educational Facilities Authority Rev. (Doctors Community Hospital), “A”, 5%, 7/01/2038 | 4,845,000 | 5,282,552 | ||||||
Rockville, MD, Mayor & Council Economic Development Refunding Rev. (Ingleside at King Farm Project), “A-1”, 5%, 11/01/2037 | 185,000 | 203,398 | ||||||
Rockville, MD, Mayor & Council Economic Development Rev. (Ingleside at King Farm Project), “B”, 5%, 11/01/2042 | 315,000 | 343,993 | ||||||
Rockville, MD, Mayor & Council Economic Development Rev. (Ingleside at King Farm Project), “B”, 5%, 11/01/2047 | 330,000 | 358,954 | ||||||
Rockville, MD, Mayor & Council Economic Development Rev. (Ingleside at King Farm Project), “C-3”, 2.5%, 11/01/2024 | 3,370,000 | 3,375,662 | ||||||
State of Maryland, “B”, 4%, 8/01/2027 | 2,570,000 | 2,750,028 | ||||||
|
| |||||||
$ | 51,673,363 | |||||||
Massachusetts - 6.4% | ||||||||
Commonwealth of Massachusetts Transportation Fund Rev. (Accelerated Bridge Program), “A”, 5%, 6/01/2023 | $ | 2,645,000 | $ | 3,021,040 | ||||
Commonwealth of Massachusetts Transportation Fund Rev. (Rail Enhancement & Accelerated Bridge Programs), “A”, 5%, 6/01/2047 | 9,645,000 | 11,088,085 | ||||||
Commonwealth of Massachusetts Transportation Fund Rev., “A”, 5%, 6/01/2041 | 3,310,000 | 3,846,452 | ||||||
Commonwealth of Massachusetts Transportation Fund Rev., “A”, 5%, 6/01/2043 | 5,980,000 | 6,938,295 | ||||||
Commonwealth of Massachusetts, “A”, AMBAC, 5.5%, 8/01/2030 | 5,000,000 | 6,323,850 | ||||||
Commonwealth of Massachusetts, General Obligation Consolidated Loan, “H”, 5%, 12/01/2026 | 10,000,000 | 11,952,900 | ||||||
Commonwealth of Massachusetts, General Obligation Consolidated Loan, “J”, 5%, 12/01/2036 | 19,615,000 | 22,700,243 |
39
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Massachusetts - continued | ||||||||
Massachusetts Bay Transportation Authority Rev., “A”, 7%, 3/01/2021 | $ | 2,995,000 | $ | 3,279,525 | ||||
Massachusetts Bay Transportation Authority Rev., “A”, 5.25%, 7/01/2034 (Prerefunded 7/01/2018) | 580,000 | 585,226 | ||||||
Massachusetts Bay Transportation Authority Rev., “A”, 5.25%, 7/01/2034 (Prerefunded 7/01/2018) | 1,420,000 | 1,432,965 | ||||||
Massachusetts Bay Transportation Authority, Sales Tax Rev., “A”, 5%, 7/01/2024 | 9,445,000 | 10,973,862 | ||||||
Massachusetts College Building Authority Rev., “A”, 5%, 5/01/2031 | 2,395,000 | 2,680,029 | ||||||
Massachusetts Development Finance Agency Lease Rev. (University of Massachusetts at Dartmouth, College of Visual & Performing Arts Project), 6%, 8/01/2021 | 1,000,000 | 1,068,370 | ||||||
Massachusetts Development Finance Agency Refunding Rev., Newbridge on The Charles, Inc., 5%, 10/01/2037 | 110,000 | 118,169 | ||||||
Massachusetts Development Finance Agency Rev. (Emerson College), 5%, 1/01/2029 | 1,550,000 | 1,729,924 | ||||||
Massachusetts Development Finance Agency Rev. (Emerson College), 5%, 1/01/2030 | 3,225,000 | 3,578,621 | ||||||
Massachusetts Development Finance Agency Rev. (Emerson College), 5%, 1/01/2031 | 895,000 | 986,854 | ||||||
Massachusetts Development Finance Agency Rev. (Emerson College), “A”, 5.25%, 1/01/2042 | 250,000 | 279,305 | ||||||
Massachusetts Development Finance Agency Rev. (Emerson College), “A”, 5%, 1/01/2047 | 5,500,000 | 6,016,780 | ||||||
Massachusetts Development Finance Agency Rev. (Lahey Health System Obligated Group), “F”, 5%, 8/15/2030 | 1,000,000 | 1,139,780 | ||||||
Massachusetts Development Finance Agency Rev. (Milford Regional Medical Center), “F”, 5.75%, 7/15/2043 | 460,000 | 499,105 | ||||||
Massachusetts Development Finance Agency Rev. (Newbridge On The Charles, Inc.), 5%, 10/01/2057 | 950,000 | 999,875 | ||||||
Massachusetts Development Finance Agency Rev. (North Hill Communities), “A”, 6.25%, 11/15/2033 (Prerefunded 11/15/2023) | 275,000 | 333,212 | ||||||
Massachusetts Development Finance Agency Rev. (North Hill Communities), “A”, 6.5%, 11/15/2043 (Prerefunded 11/15/2023) | 435,000 | 531,505 | ||||||
Massachusetts Development Finance Agency Rev. (Partners Healthcare), “L”, 5%, 7/01/2031 (Prerefunded 7/01/2021) | 1,430,000 | 1,567,852 | ||||||
Massachusetts Development Finance Agency Rev. (Partners Healthcare), “L”, 5%, 7/01/2031 | 1,350,000 | 1,465,047 | ||||||
Massachusetts Development Finance Agency Rev. (Partners Healthcare), “L”, 5%, 7/01/2036 (Prerefunded 7/01/2021) | 1,670,000 | 1,830,988 | ||||||
Massachusetts Development Finance Agency Rev. (Partners Healthcare), “S-4”, 5%, 7/01/2033 | 7,500,000 | 8,662,950 |
40
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Massachusetts - continued | ||||||||
Massachusetts Development Finance Agency Rev. (Partners Healthcare), “S-4”, 5%, 7/01/2034 | $ | 5,000,000 | $ | 5,757,150 | ||||
Massachusetts Development Finance Agency Rev. (Sabis International Charter School Issue), 4%, 4/15/2020 | 45,000 | 46,203 | ||||||
Massachusetts Development Finance Agency Rev. (Sabis International Charter School Issue), 5%, 4/15/2025 | 185,000 | 205,700 | ||||||
Massachusetts Development Finance Agency Rev. (Simmons College), “H”, SYNCORA, 5.25%, 10/01/2033 | 420,000 | 484,940 | ||||||
Massachusetts Development Finance Agency Rev. (Suffolk University), 5%, 7/01/2033 | 605,000 | 678,653 | ||||||
Massachusetts Development Finance Agency Rev. (Suffolk University), 5%, 7/01/2034 | 710,000 | 793,460 | ||||||
Massachusetts Development Finance Agency Rev. (Suffolk University), 5%, 7/01/2035 | 415,000 | 462,049 | ||||||
Massachusetts Development Finance Agency Rev. (UMass Memorial Health Care Obligated Group), “I”, 5%, 7/01/2036 | 1,440,000 | 1,591,286 | ||||||
Massachusetts Development Finance Agency Rev. (UMass Memorial Health Care Obligated Group), “K”, 5%, 7/01/2038 | 1,300,000 | 1,427,244 | ||||||
Massachusetts Development Finance Agency Rev. (Wentworth Institute of Technology Issue), 5%, 10/01/2046 | 1,145,000 | 1,254,393 | ||||||
Massachusetts Development Finance Agency Rev., Newbridge On The Charles, Inc., 5%, 10/01/2047 | 290,000 | 308,711 | ||||||
Massachusetts Development Finance Agency, Resource Recovery Rev. (Covanta Energy Project), “A”, 4.875%, 11/01/2027 | 2,380,000 | 2,381,737 | ||||||
Massachusetts Development Finance Agency, Resource Recovery Rev. (Covanta Energy Project), “C”, 5.25%, 11/01/2042 | 1,150,000 | 1,150,690 | ||||||
Massachusetts Development Finance Agency, Solid Waste Disposal Rev. (Dominion Energy Brayton), 5.75%, 12/01/2042 (Prerefunded 5/01/2019) | 670,000 | 698,850 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev, “A”, 4.25%, 1/01/2030 | 1,040,000 | 1,075,069 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev, “A”, 4.25%, 1/01/2031 | 705,000 | 726,228 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “H”, ASSD GTY, 6.35%, 1/01/2030 | 1,035,000 | 1,042,680 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “I-A”, 5.5%, 1/01/2022 | 225,000 | 236,362 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “J”, 5%, 7/01/2021 | 1,255,000 | 1,353,367 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “J”, 4.7%, 7/01/2026 | 1,190,000 | 1,227,104 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “J”, 4.9%, 7/01/2028 | 1,235,000 | 1,275,644 |
41
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Massachusetts - continued | ||||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “J”, 3.5%, 7/01/2033 (u) | $ | 14,070,000 | $ | 13,679,839 | ||||
Massachusetts Educational Financing Authority, Education Loan Rev., “J”, 3.5%, 7/01/2033 | 1,765,000 | 1,716,056 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “K”, 5.25%, 7/01/2029 | 3,175,000 | 3,383,185 | ||||||
Massachusetts Educational Financing Authority, Education Loan Rev., “K”, 3.625%, 7/01/2032 | 11,415,000 | 11,383,038 | ||||||
Massachusetts Health & Higher Educational Facilities Authority Refunding Bonds Rev. (Suffolk University) , 6.25%, 7/01/2030 (Prerefunded 7/01/2019) | 2,600,000 | 2,745,964 | ||||||
Massachusetts Health & Higher Educational Facilities Authority Refunding Bonds Rev., Unrefunded Balance, (Suffolk University), 6.25%, 7/01/2030 | 1,455,000 | 1,524,680 | ||||||
Massachusetts Port Authority Rev., “A”, 5%, 7/01/2037 | 470,000 | 509,127 | ||||||
Massachusetts Port Authority Special Facilities Rev. (ConRAC Project), “A”, 5.125%, 7/01/2041 | 465,000 | 501,437 | ||||||
Massachusetts Port Authority Special Facilities Rev. (Delta Air Lines Project, Inc.), “A”, AMBAC, 5%, 1/01/2027 | 1,925,000 | 1,951,565 | ||||||
Massachusetts School Building Authority, Sales Tax Rev., “A”, 5%, 8/15/2026 | 12,500,000 | 13,943,750 | ||||||
Massachusetts Water Resources Authority, “B”, AGM, 5.25%, 8/01/2029 | 4,215,000 | 5,290,584 | ||||||
Massachusetts Water Resources Authority, ETM, 6.5%, 7/15/2019 | 1,475,000 | 1,510,710 | ||||||
University of Massachusetts Building Authority Rev., “2017-3”, 5%, 11/01/2036 | 8,895,000 | 10,406,616 | ||||||
|
| |||||||
$ | 208,354,880 | |||||||
Michigan - 2.2% | ||||||||
Detroit, MI, Water & Sewerage Department, Senior Lien Sewage Disposal System Rev., “A”, 5%, 7/01/2019 | $ | 1,730,000 | $ | 1,793,422 | ||||
Detroit, MI, Water & Sewerage Department, Senior Lien Sewage Disposal System Rev., “A”, 5%, 7/01/2020 | 1,725,000 | 1,835,624 | ||||||
Detroit, MI, Water & Sewerage Department, Senior Lien Sewage Disposal System Rev., “A”, 5.25%, 7/01/2039 | 5,920,000 | 6,375,840 | ||||||
Detroit, MI, Water Supply System Rev., Senior Lien, “A”, 5%, 7/01/2036 | 295,000 | 313,098 | ||||||
Detroit, MI, Water Supply System Rev., Senior Lien, “C”, 5%, 7/01/2041 | 410,000 | 433,850 | ||||||
Great Lakes Water Authority, Michigan Water Supply System Rev., “B”, BAM, 5%, 7/01/2046 | 5,745,000 | 6,449,050 | ||||||
Great Lakes Water Authority, Michigan Water Supply System Rev., “D”, 5%, 7/01/2036 | 3,155,000 | 3,479,334 |
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Michigan - continued | ||||||||
Great Lakes Water Authority, Michigan Water Supply System Rev., “D”, AGM, 5%, 7/01/2034 | $ | 3,710,000 | $ | 4,207,659 | ||||
Michigan Finance Authority (City of Detroit Financial Recovery Income Tax Rev.), “F”, 3.875%, 10/01/2023 | 685,000 | 704,646 | ||||||
Michigan Finance Authority (City of Detroit Financial Recovery Income Tax Rev.), “F”, 4%, 10/01/2024 | 860,000 | 902,630 | ||||||
Michigan Finance Authority Hospital Rev. (Trinity Health Credit Group), 5%, 12/01/2030 | �� | 1,000,000 | 1,161,730 | |||||
Michigan Finance Authority Hospital Rev. (Trinity Health Credit Group), 5%, 12/01/2031 | 2,000,000 | 2,316,520 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Sewage Disposal System Rev. Refunding Second Lien Local Project), “C”, 5%, 7/01/2033 | 800,000 | 884,240 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Sewage Disposal System Rev. Refunding Second Lien Local Project), “C”, 5%, 7/01/2034 | 1,790,000 | 1,966,422 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Sewage Disposal System Rev. Refunding Second Lien Local Project), “C”, 5%, 7/01/2035 | 1,155,000 | 1,269,611 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Sewage Disposal System Rev. Refunding Second Lien Local Project), “C-7”, NATL, 5%, 7/01/2032 | 580,000 | 639,676 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Sewage Disposal System Rev. Senior Lien Local Project), “C-1”, 5%, 7/01/2044 | 450,000 | 489,717 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Second Lien Local Project), “D-2”, 5%, 7/01/2034 | 800,000 | 878,848 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Second Lien Local Project), “D-6”, NATL, 5%, 7/01/2036 | 485,000 | 530,299 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Senior Lien Local Project), “D-1”, AGM, 5%, 7/01/2035 | 240,000 | 266,417 | ||||||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Senior Lien Local Project), “D-1”, AGM, 5%, 7/01/2037 | 570,000 | 631,714 | ||||||
Michigan Finance Authority Refunding Rev. (Trinity Health Credit Group), 5%, 12/01/2034 | 3,235,000 | 3,724,197 |
43
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Michigan - continued | ||||||||
Michigan Finance Authority Refunding Rev. (Trinity Health Credit Group), 5%, 12/01/2035 | $ | 3,775,000 | $ | 4,325,584 | ||||
Michigan Finance Authority Rev. (Trinity Health Corp.), 5%, 12/01/2035 | 3,195,000 | 3,486,735 | ||||||
Michigan Hospital Finance Authority Rev. (Henry Ford Health System), 5.75%, 11/15/2039 (Prerefunded 11/15/2019) | 7,165,000 | 7,618,545 | ||||||
Michigan Housing Development Authority, “A”, 4%, 6/01/2046 | 1,680,000 | 1,767,444 | ||||||
Michigan Strategic Fund Ltd. Obligation Rev. (Detroit Edison Co.), 5.625%, 7/01/2020 | 985,000 | 1,059,574 | ||||||
Royal Oak, MI, Hospital Finance Authority Rev. (William Beaumont Hospital), “V”, 8.25%, 9/01/2039 (Prerefunded 9/01/2018) | 2,325,000 | 2,388,240 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, 5%, 12/01/2044 | 1,000,000 | 1,100,870 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, BAM, 5%, 12/01/2039 | 610,000 | 673,452 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/2039 | 470,000 | 512,126 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/2044 | 1,020,000 | 1,108,261 | ||||||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “D”, AGM, 5%, 12/01/2040 | 7,105,000 | 7,931,738 | ||||||
|
| |||||||
$ | 73,227,113 | |||||||
Minnesota - 0.5% | ||||||||
Minneapolis & St. Paul, MN, Metropolitan Airports Commission Rev., “C”, 5%, 1/01/2041 | $ | 2,500,000 | $ | 2,869,525 | ||||
Minneapolis & St. Paul, MN, Metropolitan Airports Commission Rev., “C”, 5%, 1/01/2046 | 3,000,000 | 3,431,040 | ||||||
Minnesota Housing Finance Agency, Residential Housing, “A”, 4%, 1/01/2041 | 1,420,000 | 1,478,433 | ||||||
St. Louis Park, MN, Health Care Facilities Rev. (Nicollet Health Services), 5.75%, 7/01/2039 (Prerefunded 7/01/2019) | 6,445,000 | 6,767,314 | ||||||
St. Paul, MN, Housing & Redevelopment Authority Charter School Lease Rev. (Great River School Project), “A”, 5.5%, 7/01/2052 | 240,000 | 246,451 | ||||||
University of Minnesota, “A”, 5%, 12/01/2025 | 710,000 | 786,936 | ||||||
|
| |||||||
$ | 15,579,699 | |||||||
Mississippi - 1.0% | ||||||||
Alcorn State University Educational Building Corp., Student Housing Rev., “A”, 5.125%, 9/01/2034 (Prerefunded 9/01/2019) | $ | 2,500,000 | $ | 2,621,000 | ||||
Alcorn State University Educational Building Corp., Student Housing Rev., “A”, 5.25%, 9/01/2039 (Prerefunded 9/01/2019) | 1,625,000 | 1,706,478 | ||||||
Lowndes County, MS, Solid Waste Disposal & Pollution Control Rev. (Weyerhaeuser Co.), 6.8%, 4/01/2022 | 1,750,000 | 2,004,257 |
44
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Mississippi - continued | ||||||||
Mississippi Development Bank Special Obligation (City of Jackson Water and Sewer System Rev. Bond Project), AGM, 6.875%, 12/01/2040 | $ | 495,000 | $ | 601,346 | ||||
Mississippi Development Bank Special Obligation (Harrison County Coliseum), “A”, 5.25%, 1/01/2034 | 2,455,000 | 2,940,427 | ||||||
Mississippi Hospital Equipment & Facilities Authority Rev. (Baptist Memorial Healthcare), “A”, 5%, 9/01/2022 | 1,445,000 | 1,580,411 | ||||||
Mississippi Hospital Equipment & Facilities Authority Rev. (Baptist Memorial Healthcare), “A”, 5%, 9/01/2023 | 3,560,000 | 3,933,693 | ||||||
Mississippi State University, Educational Building Corp. Rev. (Mississippi State University Refunding and Improvements Project), 5.25%, 8/01/2038 (Prerefunded 8/01/2023) | 1,250,000 | 1,447,450 | ||||||
State of Mississippi, “B”, 5%, 12/01/2025 | 585,000 | 689,949 | ||||||
State of Mississippi, “B”, 5%, 12/01/2032 | 2,500,000 | 2,922,400 | ||||||
State of Mississippi, “B”, 5%, 12/01/2033 | 2,500,000 | 2,914,025 | ||||||
State of Mississippi, “B”, 5%, 12/01/2034 | 5,000,000 | 5,815,550 | ||||||
University of Southern Mississippi, Educational Building Corp. Rev. (Campus Facilities Improvements Project), 5.25%, 9/01/2032 (Prerefunded 9/01/2019) | 1,665,000 | 1,748,483 | ||||||
University of Southern Mississippi, Educational Building Corp. Rev. (Campus Facilities Improvements Project), 5.375%, 9/01/2036 (Prerefunded 9/01/2019) | 610,000 | 641,641 | ||||||
University of Southern Mississippi, Educational Building Corp. Rev. (Facilities Refinancing Project) “A”, 5%, 3/01/2028 | 1,080,000 | 1,236,362 | ||||||
|
| |||||||
$ | 32,803,472 | |||||||
Missouri - 0.4% | ||||||||
Grundy County, MO, Industrial Development Authority Health Facilities Rev. (Wright Memorial Hospital), 6.125%, 9/01/2025 | $ | 625,000 | $ | 641,981 | ||||
Grundy County, MO, Industrial Development Authority Health Facilities Rev. (Wright Memorial Hospital), 6.75%, 9/01/2034 | 1,410,000 | 1,450,495 | ||||||
Kansas City, MO, Land Clearance for Redevelopment Authority Rev. (Convention Center Hotel Project - TIF Financing), “B”, 4.375%, 2/01/2031 | 105,000 | 105,536 | ||||||
Kansas City, MO, Land Clearance for Redevelopment Authority Rev. (Convention Center Hotel Project - TIF Financing), “B”, 5%, 2/01/2040 | 160,000 | 163,291 | ||||||
Kansas City, MO, Land Clearance for Redevelopment Authority Rev. (Convention Center Hotel Project - TIF Financing), “B”, 5%, 2/01/2050 | 275,000 | 278,605 | ||||||
Missouri Health & Educational Facilities Authority Rev. (A.T. Still University Health Services), 5%, 10/01/2039 | 730,000 | 798,416 | ||||||
Missouri Health & Educational Facilities Authority Rev. (SSM Health Care), “A”, 5%, 6/01/2031 | 2,615,000 | 2,900,898 |
45
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Missouri - continued | ||||||||
Missouri Health & Educational Facilities Authority, Senior Living Facilities Rev. (Lutheran Senior Services Project), “A”, 5%, 2/01/2036 | $ | 430,000 | $ | 469,500 | ||||
Missouri Health & Educational Facilities Authority, Senior Living Facilities Rev. (Lutheran Senior Services Project), “A”, 5%, 2/01/2044 | 1,035,000 | 1,110,514 | ||||||
Missouri Housing Development Commission, Single Family Mortgage Rev. (First Place Homeownership Loan Program), “A”, 3.75%, 5/01/2038 | 1,125,000 | 1,170,315 | ||||||
Missouri Housing Development Commission, Single Family Mortgage Rev. (Special Home Ownership Loan Program), “B”, GNMA, 4%, 11/01/2040 | 1,140,000 | 1,186,455 | ||||||
St. Louis County, MO, Industrial Development Authority Health Facilities Rev. (Nazareth Living Center), “A”, 5%, 8/15/2030 | 140,000 | 145,676 | ||||||
St. Louis County, MO, Industrial Development Authority Health Facilities Rev. (Nazareth Living Center), “A”, 5%, 8/15/2035 | 95,000 | 97,466 | ||||||
St. Louis County, MO, Industrial Development Authority Health Facilities Rev. (Nazareth Living Center), “A”, 5.125%, 8/15/2045 | 260,000 | 266,963 | ||||||
St. Louis, MO, Industrial Development Authority Financing Rev. (Ballpark Village Development Project), “A”, 3.875%, 11/15/2029 | 230,000 | 232,939 | ||||||
St. Louis, MO, Industrial Development Authority Financing Rev. (Ballpark Village Development Project), “A”, 4.375%, 11/15/2035 | 735,000 | 752,199 | ||||||
St. Louis, MO, Industrial Development Authority Financing Rev. (Ballpark Village Development Project), “A”, 4.75%, 11/15/2047 | 2,290,000 | 2,346,861 | ||||||
|
| |||||||
$ | 14,118,110 | |||||||
Montana - 0.1% | ||||||||
Montana Board of Housing Single Family Program (Federally Insured or Guaranteed Mortgage Loans), “A-2”, 3%, 12/01/2043 | $ | 1,580,000 | $ | 1,604,379 | ||||
Montana Board of Housing Single Family Program (Federally Insured or Guaranteed Mortgage Loans), “A”, 4%, 6/01/2049 | 1,095,000 | 1,162,222 | ||||||
|
| |||||||
$ | 2,766,601 | |||||||
Nebraska - 0.3% | ||||||||
Central Plains Energy Project, NE, Gas Project Rev. (Project No.3), “A”, 5%, 9/01/2034 | $ | 850,000 | $ | 1,003,442 | ||||
Douglas County, NE, Educational Facilities Refunding Rev. (Creighton University), “A”, 5.875%, 7/01/2040 (Prerefunded 7/01/2020) | 6,355,000 | 6,929,301 | ||||||
Nebraska Investment Finance Authority, Single Family Housing Rev., “A”, 3%, 3/01/2044 | 695,000 | 701,394 | ||||||
Nebraska Investment Finance Authority, Single Family Housing Rev., “A”, 4%, 9/01/2044 | 2,080,000 | �� | 2,156,690 |
46
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Nebraska - continued | ||||||||
Nebraska Investment Finance Authority, Single Family Housing Rev., “E”, 3%, 3/01/2043 | $ | 315,000 | $ | 316,537 | ||||
|
| |||||||
$ | 11,107,364 | |||||||
Nevada - 0.0% | ||||||||
Director of the State of Nevada, Department of Business and Industry, Charter School Lease Rev. (Somerset Academy), “A”, 5%, 12/15/2035 | $ | 630,000 | $ | 643,684 | ||||
Director of the State of Nevada, Department of Business and Industry, Charter School Lease Rev. (Somerset Academy), “A”, 5.125%, 12/15/2045 | 760,000 | 767,402 | ||||||
|
| |||||||
$ | 1,411,086 | |||||||
New Hampshire - 0.3% | ||||||||
New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6%, 10/01/2027 (Prerefunded 10/01/2019) | $ | 4,610,000 | $ | 4,897,756 | ||||
New Hampshire Business Finance Authority Rev. (Huggins Hospital), 6.875%, 10/01/2039 (Prerefunded 10/01/2019) | 460,000 | 492,430 | ||||||
New Hampshire Business Finance Authority, Solid Waste Disposal Rev. (Casella Waste Systems, Inc. Project), 4%, 4/01/2029 (Put Date 10/01/2019) | 185,000 | 185,087 | ||||||
New Hampshire Health & Education Facilities Authority Rev. (Memorial Hospital), 5.5%, 6/01/2031 | 1,600,000 | 1,818,080 | ||||||
New Hampshire Health & Education Facilities Authority Rev. (Memorial Hospital), 5.5%, 6/01/2036 | 1,595,000 | 1,788,410 | ||||||
|
| |||||||
$ | 9,181,763 | |||||||
New Jersey - 5.2% | ||||||||
Atlantic City, NJ, Tax Appeal Refunding Bonds (Qualified Pursuant to the Provisions of the Municipal Qualified Bond Act), “A”, BAM, 5%, 3/01/2032 | $ | 360,000 | $ | 405,720 | ||||
Atlantic City, NJ, Tax Appeal Refunding Bonds (Qualified Pursuant to the Provisions of the Municipal Qualified Bond Act), “A”, BAM, 5%, 3/01/2037 | 485,000 | 539,087 | ||||||
Atlantic City, NJ, Tax Appeal Refunding Bonds (Qualified Pursuant to the Provisions of the Municipal Qualified Bond Act), “A”, BAM, 5%, 3/01/2042 | 600,000 | 663,048 | ||||||
Atlantic City, NJ, Tax Appeal Refunding Bonds (Qualified Pursuant to the Provisions of the Municipal Qualified Bond Act), “B”, AGM, 5%, 3/01/2032 | 1,665,000 | 1,876,455 | ||||||
Atlantic City, NJ, Tax Appeal Refunding Bonds (Qualified Pursuant to the Provisions of the Municipal Qualified Bond Act), “B”, AGM, 5%, 3/01/2037 | 1,670,000 | 1,863,002 |
47
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
New Jersey - continued | ||||||||
New Jersey Building Authority Rev., Unrefunded Balance, “A”, BAM, 5%, 6/15/2029 | $ | 355,000 | $ | 401,846 | ||||
New Jersey Casino Reinvestment Development Authority, Luxury Tax Rev., AGM, 5%, 11/01/2029 | 555,000 | 603,180 | ||||||
New Jersey Casino Reinvestment Development Authority, Luxury Tax Rev., AGM, 5%, 11/01/2030 | 850,000 | 920,678 | ||||||
New Jersey Casino Reinvestment Development Authority, Luxury Tax Rev., AGM, 5%, 11/01/2031 | 555,000 | 599,461 | ||||||
New Jersey Casino Reinvestment Development Authority, Luxury Tax Rev., AGM, 5%, 11/01/2032 | 555,000 | 598,445 | ||||||
New Jersey Economic Development Authority Rev. (Provident Group - Montclair Properties LLC - Montclair State University Student Housing Project), ASSD GTY, 5%, 6/01/2037 | 1,970,000 | 2,201,436 | ||||||
New Jersey Economic Development Authority Rev. (Provident Group - Montclair Properties LLC - Montclair State University Student Housing Project), ASSD GTY, 5%, 6/01/2042 | 2,190,000 | 2,429,170 | ||||||
New Jersey Economic Development Authority Rev. (Provident Group - Rowan Properties LLC - Rowan University Student Housing Project), “A”, 5%, 1/01/2030 | 1,095,000 | 1,182,425 | ||||||
New Jersey Economic Development Authority Rev. (Provident Group - Rowan Properties LLC - Rowan University Student Housing Project), “A”, 5%, 1/01/2035 | 1,570,000 | 1,671,453 | ||||||
New Jersey Economic Development Authority Rev. (The Goethals Bridge Replacement Project), 5.5%, 1/01/2027 | 470,000 | 533,680 | ||||||
New Jersey Economic Development Authority Rev. (The Goethals Bridge Replacement Project), 5%, 1/01/2028 | 470,000 | 519,500 | ||||||
New Jersey Economic Development Authority Rev. (The Goethals Bridge Replacement Project), AGM, 5%, 1/01/2031 | 1,415,000 | 1,571,131 | ||||||
New Jersey Economic Development Authority Rev. (The Goethals Bridge Replacement Project), AGM, 5.125%, 1/01/2039 | 870,000 | 957,679 | ||||||
New Jersey Economic Development Authority Rev. (The Goethals Bridge Replacement Project), AGM, 5.125%, 7/01/2042 | 435,000 | 477,882 | ||||||
New Jersey Economic Development Authority Rev., School Facilities Construction, “DDD”, 5%, 6/15/2034 | 610,000 | 656,531 | ||||||
New Jersey Economic Development Authority Rev., School Facilities Construction, “DDD”, 5%, 6/15/2035 | 510,000 | 548,092 | ||||||
New Jersey Economic Development Authority Rev., School Facilities Construction, “DDD”, 5%, 6/15/2042 | 2,855,000 | 3,045,600 | ||||||
New Jersey Economic Development Authority, Special Facilities Rev. (Continental Airlines, Inc.), 4.875%, 9/15/2019 | 595,000 | 610,369 | ||||||
New Jersey Economic Development Authority, Special Facilities Rev. (Continental Airlines, Inc.), 5.25%, 9/15/2029 | 6,250,000 | 6,818,625 | ||||||
New Jersey Economic Development Authority, Special Facilities Rev. (Continental Airlines, Inc.), “A”, 5.625%, 11/15/2030 | 400,000 | 450,412 |
48
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
New Jersey - continued | ||||||||
New Jersey Economic Development Authority, Special Facilities Rev. (Continental Airlines, Inc.), “B”, 5.625%, 11/15/2030 | $ | 370,000 | $ | 416,631 | ||||
New Jersey Economic Development Authority, State Lease Rev. (Juvenile Justice Commission Facilities Project), “C”, 5%, 6/15/2042 | 3,385,000 | 3,621,002 | ||||||
New Jersey Economic Development Authority, Water Facilities Rev. (New Jersey American Water Co.), “A”, 5.7%, 10/01/2039 | 5,000,000 | 5,241,550 | ||||||
New Jersey Economic Development Motor Vehicle Surcharges Subordinate Refunding Rev., “A”, 3.125%, 7/01/2029 | 1,915,000 | 1,873,081 | ||||||
New Jersey Economic Development Motor Vehicle Surcharges Subordinate Refunding Rev., “A”, 3.125%, 7/01/2031 (u) | 8,400,000 | 8,016,540 | ||||||
New Jersey Economic Development Motor Vehicle Surcharges Subordinate Refunding Rev., “A”, 5%, 7/01/2033 | 485,000 | 522,534 | ||||||
New Jersey Educational Facilities Authority Rev. (University of Medicine & Dentistry), “B”, 7.5%, 12/01/2032 (Prerefunded 6/01/2019) | 4,195,000 | 4,467,885 | ||||||
New Jersey Health Care Facilities, Financing Authority Rev. (University Hospital), “A”, AGM, 5%, 7/01/2046 | 5,485,000 | 6,044,031 | ||||||
New Jersey Health Care Facilities, Financing Authority, State Contract Refunding Bonds, (Hospital Asset Transformation Program), 5%, 10/01/2031 | 2,105,000 | 2,287,861 | ||||||
New Jersey Health Care Facilities, Financing Authority, State Contract Refunding Bonds, (Hospital Asset Transformation Program), 5%, 10/01/2032 | 2,100,000 | 2,278,815 | ||||||
New Jersey Health Care Facilities, Financing Authority, State Contract Refunding Bonds, (Hospital Asset Transformation Program), 5%, 10/01/2033 | 1,775,000 | 1,918,527 | ||||||
New Jersey Health Care Facilities, Financing Authority, State Contract Refunding Bonds, (Hospital Asset Transformation Program), 5%, 10/01/2034 | 1,785,000 | 1,923,230 | ||||||
New Jersey Health Care Facilities, Financing Authority, State Contract Refunding Bonds, (Hospital Asset Transformation Program), 5%, 10/01/2035 | 1,575,000 | 1,692,952 | ||||||
New Jersey Health Care Facilities, Financing Authority, State Contract Refunding Bonds, (Hospital Asset Transformation Program), 5%, 10/01/2036 | 1,835,000 | 1,969,304 | ||||||
New Jersey Health Care Facilities, Financing Authority, State Contract Refunding Bonds, (Hospital Asset Transformation Program), 5%, 10/01/2037 | 3,040,000 | 3,257,360 | ||||||
New Jersey Higher Education Assistance Authority Student Loan Rev., “A”, ASSD GTY, 6.125%, 6/01/2030 | 1,150,000 | 1,155,497 | ||||||
New Jersey Higher Education Student Assistance Authority, Student Loan Rev., “1A”, 2.75%, 12/01/2027 | 6,015,000 | 5,843,031 |
49
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
New Jersey - continued | ||||||||
New Jersey Higher Education Student Assistance Authority, Student Loan Rev., “1A”, 3.5%, 12/01/2029 | $ | 2,925,000 | $ | 2,924,386 | ||||
New Jersey Higher Education Student Assistance Authority, Student Loan Rev., “1B”, 2.95%, 12/01/2028 | 14,730,000 | 14,557,659 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.5%, 6/01/2023 | 25,600,000 | 25,697,792 | ||||||
New Jersey Tobacco Settlement Financing Corp., “1-A”, 4.75%, 6/01/2034 | 3,985,000 | 3,983,884 | ||||||
New Jersey Transportation Trust Fund Authority, “B”, AMBAC, 5.5%, 9/01/2026 | 3,525,000 | 4,037,500 | ||||||
New Jersey Transportation Trust Fund Authority, Capital Appreciation Transportation Systems, “C”, AMBAC, 0%, 12/15/2035 | 3,725,000 | 1,651,106 | ||||||
New Jersey Transportation Trust Fund Authority, Capital Appreciation Transportation Systems, “C”, AMBAC, 0%, 12/15/2036 | 9,720,000 | 4,092,314 | ||||||
New Jersey Transportation Trust Fund Authority, Federal Highway Reimbursement Rev., “A-1”, 5%, 6/15/2027 | 3,985,000 | 4,425,701 | ||||||
New Jersey Transportation Trust Fund Authority, Federal Highway Reimbursement Rev., “A-1”, 5%, 6/15/2030 | 8,585,000 | 8,634,020 | ||||||
New Jersey Transportation Trust Fund Authority, Federal Highway Reimbursement Rev., “A-1”, 5%, 6/15/2031 | 6,865,000 | 6,904,199 | ||||||
New Jersey Transportation Trust Fund Authority, Transportation Systems, “B”, NATL, 5.5%, 12/15/2020 | 3,325,000 | 3,585,547 | ||||||
New Jersey Transportation Trust Fund Authority, Transportation Systems, “B”, NATL, 5.5%, 12/15/2021 | 5,000,000 | 5,497,000 | ||||||
|
| |||||||
$ | 170,665,846 | |||||||
New Mexico - 0.9% | ||||||||
Albuquerque, NM, Bernalillo County Water Utility Authority (Joint Water and Sewer System Improvement Rev.), 5%, 7/01/2031 | $ | 2,500,000 | $ | 2,945,125 | ||||
Albuquerque, NM, Bernalillo County Water Utility Authority (Joint Water and Sewer System Improvement Rev.), 5%, 7/01/2033 | 2,300,000 | 2,691,138 | ||||||
Farmington, NM, Pollution Control Rev. (Public Service New Mexico), “D”, 5.9%, 6/01/2040 | 9,975,000 | �� | 10,705,569 | |||||
New Mexico Municipal Energy Acquisition Authority, Gas Supply Rev., “A”, 5%, 11/01/2039 (Put Date 8/01/2019) | 11,435,000 | 11,880,393 | ||||||
|
| |||||||
$ | 28,222,225 | |||||||
New York - 3.8% | ||||||||
Brooklyn, NY, Arena Local Development Corp. (Barclays Center Project), 6%, 7/15/2030 (Prerefunded 1/15/2020) | $ | 2,015,000 | $ | 2,166,508 | ||||
Build NYC Resource Corp. Rev. (Albert Einstein School of Medicine, Inc.), 5.5%, 9/01/2045 | 4,385,000 | 4,762,110 |
50
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
New York - continued | ||||||||
Glen Cove, NY, Local Economic Assistance Corp. (Garvies Point Public Improvement Project), Capital Appreciation, “B”, 0%, 1/01/2045 | $ | 1,610,000 | $ | 432,993 | ||||
Glen Cove, NY, Local Economic Assistance Corp. (Garvies Point Public Improvement Project), Convertible Capital Appreciation, “C”, 0% to 1/01/2024, 5.625% to 1/01/2055 | 1,610,000 | 1,330,118 | ||||||
Hempstead, NY, Local Development Corp. Rev. (Hofstra University Project), 5%, 7/01/2025 | 1,450,000 | 1,578,310 | ||||||
Hempstead, NY, Local Development Corp. Rev. (Hofstra University Project), 5%, 7/01/2026 | 1,080,000 | 1,174,867 | ||||||
Hudson Yards, NY, Infrastructure Corp. Rev., “A”, 5.75%, 2/15/2047 | 1,500,000 | 1,633,995 | ||||||
Hudson Yards, NY, Infrastructure Corp. Rev., “A”, 5.75%, 2/15/2047 (Prerefunded 2/15/2021) | 2,450,000 | 2,714,061 | ||||||
Metropolitan Transportation Authority (Hudson Rail Yards Trust), “A”, 5%, 11/15/2046 | 13,870,000 | 14,429,100 | ||||||
New York Dormitory Authority Rev. (Orange Regional Medical Center Obligated Group Rev.), 5%, 12/01/2033 | 100,000 | 109,287 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (Memorial Sloan-Kettering Cancer), “1”, 5%, 7/01/2042 | 3,500,000 | 4,006,590 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (Bronx-Lebanon Hospital Center), LOC, 6.5%, 8/15/2030 (Prerefunded 2/15/2019) | 1,475,000 | 1,534,959 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (Bronx-Lebanon Hospital Center), LOC, 6.25%, 2/15/2035 (Prerefunded 2/15/2019) | 1,395,000 | 1,449,335 | ||||||
New York Dormitory Authority Rev., Non-State Supported Debt (Orange Regional Medical Center), “A”, 5%, 12/01/2035 | 200,000 | 217,282 | ||||||
New York Dormitory Authority Rev., State Personal Income Tax, “A”, 5%, 12/15/2025 | 5,000,000 | 5,631,250 | ||||||
New York Energy Research & Development Authority Pollution Control Rev. (New York Electric & Gas Corp. Project), “C”, 2%, 6/01/2029 (Put Date 5/01/2020) | 3,485,000 | 3,477,228 | ||||||
New York Environmental Facilities Corp., State Clean Water and Drinking Water Revolving Funds Rev. (New York City Municipal Water Finance Authority Projects-Second Resolution Bonds), “B”, 5%, 6/15/2025 | 2,300,000 | 2,527,056 | ||||||
New York Environmental Facilities Corp., State Revolving Funds Rev., “C”, 5%, 5/15/2041 | 2,745,000 | 2,983,019 | ||||||
New York Liberty Development Corp. Rev. (Goldman Sachs Headquarters), 5.25%, 10/01/2035 | 11,660,000 | 14,469,360 | ||||||
New York Liberty Development Corp., Liberty Rev. (3 World Trade Center Project), “2”, 5.375%, 11/15/2040 | 3,190,000 | 3,497,006 |
51
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
New York - continued | ||||||||
New York Liberty Development Corp., Liberty Rev. (4 World Trade Center Project), 5%, 11/15/2031 | $ | 2,300,000 | $ | 2,519,305 | ||||
New York Mortgage Agency Rev., “54”, 4%, 4/01/2047 | 4,875,000 | 5,147,610 | ||||||
New York Mortgage Agency Rev., “208”, 4%, 10/01/2048 | 8,290,000 | 8,764,271 | ||||||
New York Thruway Authority General Rev., Junior Indebtedness Obligations, “A”, 5%, 5/01/2019 | 3,325,000 | 3,442,738 | ||||||
New York Transportation Development Corp., Special Facility Rev. (American Airlines, Inc. John F. Kennedy International Airport Project), 5%, 8/01/2026 | 1,490,000 | 1,582,678 | ||||||
New York Transportation Development Corp., Special Facility Rev. (American Airlines, Inc. John F. Kennedy International Airport Project), 5%, 8/01/2031 | 765,000 | 806,126 | ||||||
New York Urban Development Corp., State Personal Income Tax Rev., “C”, 5%, 3/15/2034 | 1,455,000 | 1,695,497 | ||||||
New York, NY, “B-1”, 5%, 12/01/2041 | 3,500,000 | 3,993,045 | ||||||
New York, NY, City Housing Development Corp., Multifamily Housing Rev. (8 Spruce Street), “F”, 4.5%, 2/15/2048 | 5,574,420 | 5,780,897 | ||||||
New York, NY, City Transitional Finance Authority Building Aid Rev., “S-3”, 5%, 7/15/2043 | 1,025,000 | 1,187,483 | ||||||
New York, NY, Industrial Development Agency, Airport Facilities Rev. (Transportation Infrastructure Properties LLC), 5%, 7/01/2028 | 1,570,000 | 1,684,469 | ||||||
New York, NY, Municipal Water Finance Authority, Water & Sewer System Rev., “CC-1”, 5%, 6/15/2046 | 7,000,000 | 7,934,500 | ||||||
Niagara County, NY, Industrial Development Agency, Solid Waste Disposal Rev. (Covanta Energy Project), “A”, 5.25%, 11/01/2042 | 1,170,000 | 1,170,702 | ||||||
Onondaga, NY, Civic Development Corp. Rev. (St. Joseph’s Hospital Health Center), 5%, 7/01/2025 (Prerefunded 7/01/2019) | 110,000 | 114,503 | ||||||
Onondaga, NY, Civic Development Corp. Rev. (St. Joseph’s Hospital Health Center), 5.125%, 7/01/2031 (Prerefunded 7/01/2019) | 110,000 | 114,673 | ||||||
Port Authority of NY & NJ, (170th Series), 5%, 12/01/2019 | 1,765,000 | 1,854,609 | ||||||
Port Authority of NY & NJ, Special Obligation Rev. (JFK International Air Terminal LLC), 6%, 12/01/2036 | 2,315,000 | 2,548,028 | ||||||
Tobacco Settlement Asset Securitization Corp., NY, “A”, 5%, 6/01/2034 | 950,000 | 1,049,057 | ||||||
Tobacco Settlement Asset Securitization Corp., NY, “A”, 5%, 6/01/2035 | 480,000 | 528,480 | ||||||
Tobacco Settlement Asset Securitization Corp., NY, “A”, 5%, 6/01/2041 | 2,710,000 | 2,931,136 | ||||||
|
| |||||||
$ | 124,974,241 |
52
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
North Carolina - 0.6% | ||||||||
North Carolina Medical Care Commission Retirement Facilities First Mortgage Rev. (United Church Homes and Services), “A”, 5%, 9/01/2037 | $ | 100,000 | $ | 106,885 | ||||
North Carolina Medical Care Commission Retirement Facilities First Mortgage Rev. (United Church Homes and Services), “C”, 5%, 9/01/2041 | 370,000 | 388,104 | ||||||
North Carolina Medical Care Commission Retirement Facilities First Mortgage Rev. (United Church Homes and Services), “C”, 5%, 9/01/2046 | 1,350,000 | 1,411,209 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Pennybyrn at Maryfield), 5%, 10/01/2025 | 205,000 | 228,837 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Pennybyrn at Maryfield), 5%, 10/01/2030 | 260,000 | 279,198 | ||||||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Pennybyrn at Maryfield), 5%, 10/01/2035 | 285,000 | 301,995 | ||||||
North Carolina Turnpike Authority, Monroe Expressway Toll Rev., “A”, 5%, 7/01/2042 | 610,000 | 671,336 | ||||||
North Carolina Turnpike Authority, Monroe Expressway Toll Rev., “A”, 5%, 7/01/2047 | 1,195,000 | 1,306,231 | ||||||
North Carolina Turnpike Authority, Monroe Expressway Toll Rev., “A”, 5%, 7/01/2051 | 2,440,000 | 2,665,310 | ||||||
North Carolina Turnpike Authority, Monroe Expressway Toll Rev., “A”, 5%, 7/01/2054 | 975,000 | 1,065,032 | ||||||
North Carolina Turnpike Authority, Triangle Expressway System Turnpike Rev., AGM, 5%, 1/01/2031 | 1,600,000 | 1,848,448 | ||||||
Northern Hospital District, Surry County, NC, Health Care Facilities Rev., 5%, 10/01/2031 | 1,250,000 | 1,323,612 | ||||||
Northern Hospital District, Surry County, NC, Health Care Facilities Rev., 5%, 10/01/2033 | 1,375,000 | 1,446,087 | ||||||
University of North Carolina Board of Governors, Hospitals at Chapel Hill Rev., 5%, 2/01/2046 | 5,065,000 | 5,636,585 | ||||||
|
| |||||||
$ | 18,678,869 | |||||||
North Dakota - 0.4% | ||||||||
Country of Ward, ND, Health Care Facilities Rev. (Trinity Obligated Group), “C”, 5%, 6/01/2034 | $ | 3,105,000 | $ | 3,416,494 | ||||
Country of Ward, ND, Health Care Facilities Rev. (Trinity Obligated Group), “C”, 5%, 6/01/2038 | 3,620,000 | 3,944,895 | ||||||
Country of Ward, ND, Health Care Facilities Rev. (Trinity Obligated Group), “C”, 5%, 6/01/2043 | 2,585,000 | 2,803,458 | ||||||
Country of Ward, ND, Health Care Facilities Rev. (Trinity Obligated Group), “C”, 5%, 6/01/2048 | 1,555,000 | 1,679,664 |
53
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
North Dakota - continued | ||||||||
North Dakota Housing Finance Agency Rev. (Home Mortgage Finance Program), “A”, 4%, 7/01/2034 | $ | 895,000 | $ | 931,337 | ||||
|
| |||||||
$ | 12,775,848 | |||||||
Ohio - 2.1% | ||||||||
American Municipal Power, Inc. Rev. (AMP Fremont Energy Center Project), “B”, 5%, 2/15/2024 (Prerefunded 2/15/2022) | $ | 1,500,000 | $ | 1,664,250 | ||||
Buckeye, OH, Tobacco Settlement Financing Authority Rev., “A-2”, 5.125%, 6/01/2024 | 8,435,000 | 8,255,841 | ||||||
Buckeye, OH, Tobacco Settlement Financing Authority Rev., “A-2”, 6.5%, 6/01/2047 | 8,500,000 | 8,553,125 | ||||||
Cleveland-Cuyahoga County, OH, Port Authority Development Rev. (Euclid Avenue Development Corp. Project), 5%, 8/01/2044 | 1,225,000 | 1,266,172 | ||||||
Cleveland-Cuyahoga County, OH, Port Authority Development Rev. (Flats East Development Project), “B”, 7%, 5/15/2040 | 1,040,000 | 1,148,597 | ||||||
Cuyahoga County OH, Hospital Rev. (The Metrohealth System), 4.75%, 2/15/2047 | 4,065,000 | 4,162,316 | ||||||
Cuyahoga County OH, Hospital Rev. (The Metrohealth System), 5.5%, 2/15/2052 | 890,000 | 974,176 | ||||||
Cuyahoga County OH, Hospital Rev. (The Metrohealth System), 5.5%, 2/15/2057 | 9,355,000 | 10,196,482 | ||||||
Montgomery County, OH, Health Care & Multifamily Housing Rev. (St. Leonard), 6.375%, 4/01/2030 | 1,915,000 | 2,041,141 | ||||||
Montgomery County, OH, Health Care & Multifamily Housing Rev. (St. Leonard), 6.625%, 4/01/2040 | 2,770,000 | 2,974,703 | ||||||
Ohio Air Quality Development Authority, Facilities Rev. (Pratt Paper LLC Project), 3.75%, 1/15/2028 | 190,000 | 189,837 | ||||||
Ohio Air Quality Development Authority, Facilities Rev. (Pratt Paper LLC Project), 4.25%, 1/15/2038 | 250,000 | 250,583 | ||||||
Ohio Air Quality Development Authority, Facilities Rev. (Pratt Paper LLC Project), 4.5%, 1/15/2048 | 330,000 | 335,999 | ||||||
Ohio Higher Educational Facility Commission Rev. (Franciscan University of Steubenville), 5%, 11/01/2041 | 3,000,000 | 3,295,890 | ||||||
Ohio Tax Exempt Private Activity (Portsmouth Bypass Project), AGM, 5%, 12/31/2035 | 7,740,000 | 8,575,765 | ||||||
Southeastern Ohio Port Authority, Hospital Facilities Improvement Rev. (Memorial Health System Obligated Group Project), 5.5%, 12/01/2029 | 130,000 | 142,810 | ||||||
Southeastern Ohio Port Authority, Hospital Facilities Improvement Rev. (Memorial Health System Obligated Group Project), 5%, 12/01/2035 | 720,000 | 753,977 | ||||||
Southeastern Ohio Port Authority, Hospital Facilities Improvement Rev. (Memorial Health System Obligated Group Project), 5%, 12/01/2043 | 925,000 | 956,691 |
54
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Ohio - continued | ||||||||
Southeastern Ohio Port Authority, Hospital Facilities Improvement Rev. (Memorial Health System Obligated Group Project), 5.5%, 12/01/2043 | $ | 1,130,000 | $ | 1,212,479 | ||||
Summit County, OH, Port Authority Building Rev. (Flats East Development Recovery Zone Facility Bonds), 6.875%, 5/15/2040 | 405,000 | 446,022 | ||||||
The Ohio State University, Special Purpose Rev., “A”, 5%, 6/01/2038 (u) | 3,355,000 | 3,702,175 | ||||||
The Ohio State University, Special Purpose Rev., “A”, 5%, 6/01/2043 (u) | 8,150,000 | 8,960,517 | ||||||
|
| |||||||
�� | $ | 70,059,548 | ||||||
Oklahoma - 1.1% | ||||||||
Oklahoma County, OK, Home Finance Authority, Single Family Mortgage Rev., “A”, GNMA, 5.4%, 10/01/2038 | $ | 185,000 | $ | 188,841 | ||||
Oklahoma Development Finance Authority, First Mortgage Rev. (Provident Education Resources, Inc.- Cross Village Student Housing Project), 5%, 8/01/2052 | 4,855,000 | 5,163,487 | ||||||
Oklahoma Development Finance Authority, First Mortgage Rev. (Provident Education Resources, Inc.- Cross Village Student Housing Project), 5.25%, 8/01/2057 | 5,590,000 | 6,007,517 | ||||||
Oklahoma Development Finance Authority, First Mortgage Rev. (Sommerset Project), 5%, 7/01/2042 | 1,495,000 | 1,590,067 | ||||||
Oklahoma Development Finance Authority, Health System Rev. (OU Medicine Project), “B”, 5%, 8/15/2029 | 150,000 | 169,549 | ||||||
Oklahoma Development Finance Authority, Health System Rev. (OU Medicine Project), “B”, 5%, 8/15/2033 | 810,000 | 899,926 | ||||||
Oklahoma Development Finance Authority, Health System Rev. (OU Medicine Project), “B”, 5%, 8/15/2038 | 1,135,000 | 1,241,565 | ||||||
Oklahoma Development Finance Authority, Health System Rev. (OU Medicine Project), “B”, 5.25%, 8/15/2043 | 1,215,000 | 1,347,119 | ||||||
Oklahoma Development Finance Authority, Health System Rev. (OU Medicine Project), “B”, 5.25%, 8/15/2048 | 1,140,000 | 1,259,871 | ||||||
Oklahoma Development Finance Authority, Health System Rev. (OU Medicine Project), “B”, 5.5%, 8/15/2052 | 1,625,000 | 1,811,079 | ||||||
Oklahoma Development Finance Authority, Health System Rev. (OU Medicine Project), “B”, 5.5%, 8/15/2057 | 2,310,000 | 2,558,071 | ||||||
Oklahoma Industrial Authority Rev. (Oklahoma Medical Research Foundation), 5.5%, 7/01/2029 (Prerefunded 7/01/2018) | 4,000,000 | 4,037,960 | ||||||
Tulsa, OK, Airport Improvement Trust Rev., “A”, 5%, 6/01/2045 | 755,000 | 807,737 | ||||||
Tulsa, OK, Industrial Authority Rev. (University of Tulsa), 6%, 10/01/2027 | 4,670,000 | 4,925,963 | ||||||
Tulsa, OK, Municipal Airport Trust Rev. (American Airlines, Inc.), 5%, 6/01/2035 (Put Date 6/01/2025) | 255,000 | 274,513 |
55
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Oklahoma - continued | ||||||||
Tulsa, OK, Municipal Airport Trust Rev. (American Airlines, Inc.), “B”, 5.5%, 6/01/2035 | $ | 3,365,000 | $ | 3,617,577 | ||||
Tulsa, OK, Municipal Airport Trust Rev. (American Airlines, Inc.), “B”, 5.5%, 12/01/2035 | 1,440,000 | 1,548,057 | ||||||
|
| |||||||
$ | 37,448,899 | |||||||
Oregon - 0.9% | ||||||||
Oregon Facilities Authority Rev. (Legacy Health), “A”, 5%, 6/01/2046 | $ | 9,000,000 | $ | 10,059,120 | ||||
Oregon Health & Sciences University Rev., “B”, 5%, 7/01/2034 | 7,500,000 | 8,641,350 | ||||||
Port of Portland, OR, International Airport Rev., “24B”, 5%, 7/01/2042 | 1,340,000 | 1,497,718 | ||||||
Washington Clackamas & Yamhill Counties, OR, Sherwood School District No. 88J, General Obligation, “B”, 5%, 6/15/2030 | 4,000,000 | 4,744,880 | ||||||
Washington Clackamas & Yamhill Counties, OR, Sherwood School District No. 88J, General Obligation, “B”, 5%, 6/15/2033 | 1,750,000 | 2,054,080 | ||||||
Washington, Yamhill & Multnomah Counties, OR, Hillsboro School District 1J, 5%, 6/15/2032 | 1,455,000 | 1,720,755 | ||||||
Washington, Yamhill & Multnomah Counties, OR, Hillsboro School District 1J, 5%, 6/15/2035 | 425,000 | 497,722 | ||||||
|
| |||||||
$ | 29,215,625 | |||||||
Pennsylvania - 6.4% | ||||||||
Allegheny County, PA, Higher Education Building Authority Rev. (Robert Morris University), 5%, 10/15/2037 | $ | 240,000 | $ | 261,444 | ||||
Allegheny County, PA, Higher Education Building Authority Rev. (Robert Morris University), 5%, 10/15/2047 | 720,000 | 778,370 | ||||||
Allegheny County, PA, Higher Education Building Authority Rev. (Robert Morris University), “A”, 5.9%, 10/15/2028 (Prerefunded 10/15/2018) | 1,125,000 | 1,150,515 | ||||||
Allentown, PA, Neighborhood Improvement Zone Development Authority Tax Rev. (City Center Refunding Project), 5%, 5/01/2027 | 2,000,000 | 2,234,840 | ||||||
Berks County, PA, Reading School District, AGM, 5%, 3/01/2035 | 530,000 | 596,875 | ||||||
Berks County, PA, Reading School District, AGM, 5%, 3/01/2036 | 550,000 | 618,046 | ||||||
Berks County, PA, Reading School District, AGM, 5%, 3/01/2037 | 470,000 | 526,997 | ||||||
Berks County, PA, Reading School District, AGM, 5%, 3/01/2038 | 215,000 | 240,723 | ||||||
Chester County, PA, Industrial Development Authority Educational Facilities Rev. (Avon Grove Charter School), “A”, 4.75%, 12/15/2037 | 1,115,000 | 1,148,138 | ||||||
Chester County, PA, Industrial Development Authority Educational Facilities Rev. (Avon Grove Charter School), “A”, 5%, 12/15/2047 | 530,000 | 551,878 | ||||||
Chester County, PA, Industrial Development Authority Educational Facilities Rev. (Avon Grove Charter School), “A”, 5%, 12/15/2051 | 645,000 | 666,491 |
56
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Pennsylvania - continued | ||||||||
Clarion County, PA, Industrial Development Authority, Student Housing Rev. (Clarion University Foundation, Inc.), 5%, 7/01/2034 | $ | 490,000 | $ | 514,598 | ||||
Commonwealth Financing Authority, PA, Tobacco Master Settlement Payment Rev., 5%, 6/01/2032 | 1,475,000 | 1,656,041 | ||||||
Commonwealth Financing Authority, PA, Tobacco Master Settlement Payment Rev., 5%, 6/01/2033 | 1,260,000 | 1,407,811 | ||||||
Commonwealth Financing Authority, PA, Tobacco Master Settlement Payment Rev., 5%, 6/01/2034 | 630,000 | 700,503 | ||||||
Cumberland County, PA, Municipal Authority Rev. (Asbury Atlantic, Inc.), 6%, 1/01/2030 | 715,000 | 749,163 | ||||||
Cumberland County, PA, Municipal Authority Rev. (Asbury Atlantic, Inc.), 6%, 1/01/2040 | 1,910,000 | 1,990,984 | ||||||
Cumberland County, PA, Municipal Authority Rev. (Diakon Lutheran Social Ministries Project), 5%, 1/01/2021 | 730,000 | 780,297 | ||||||
Cumberland County, PA, Municipal Authority Rev. (Diakon Lutheran Social Ministries Project), 5%, 1/01/2022 | 1,275,000 | 1,387,736 | ||||||
Cumberland County, PA, Municipal Authority Rev. (Diakon Lutheran Social Ministries Project), 5%, 1/01/2023 | 915,000 | 1,012,383 | ||||||
Cumberland County, PA, Municipal Authority Rev. (Diakon Lutheran Social Ministries Project), 6.125%, 1/01/2029 (Prerefunded 1/01/2019) | 745,000 | 769,540 | ||||||
Cumberland County, PA, Municipal Authority Rev. (Diakon Lutheran Social Ministries Project), 6.375%, 1/01/2039 (Prerefunded 1/01/2019) | 4,540,000 | 4,697,901 | ||||||
Cumberland County, PA, Municipal Authority Rev. (Diakon Lutheran Social Ministries Project), 6.375%, 1/01/2039 | 505,000 | 518,297 | ||||||
Cumberland County, PA, Municipal Authority Rev., Unrefunded Balance, (Diakon Lutheran Social Ministries Project), 6.125%, 1/01/2029 | 85,000 | 87,254 | ||||||
Dallas, PA, Area Municipal Authority Rev. (Misericordia University Project), 5%, 5/01/2029 | 1,440,000 | 1,561,392 | ||||||
Delaware County, PA, Authority College Rev. (Neumann College), 6%, 10/01/2025 (Prerefunded 10/01/2018) | 490,000 | 500,427 | ||||||
Delaware County, PA, Industrial Development Authority, Resource Recovery Facilities Rev. (American Ref-Fuel Co.), “A”, 6.2%, 7/01/2019 | 410,000 | 410,996 | ||||||
Delaware Valley, PA, Regional Finance Authority, AMBAC, 5.5%, 8/01/2018 | 9,640,000 | 9,761,175 | ||||||
Delaware Valley, PA, Regional Finance Authority, “C”, FLR, 2.094% (LIBOR-3mo. + 0.75%), 6/01/2037 | 7,315,000 | 6,484,821 | ||||||
East Hempfield Township, PA, Industrial Development Authority Rev. (Student Services, Inc., Student Housing Project at Millersville University of Pennsylvania), 5%, 7/01/2030 | 365,000 | 395,616 |
57
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Pennsylvania - continued | ||||||||
East Hempfield Township, PA, Industrial Development Authority Rev. (Student Services, Inc., Student Housing Project at Millersville University of Pennsylvania), 5%, 7/01/2035 | $ | 470,000 | $ | 501,410 | ||||
East Hempfield Township, PA, Industrial Development Authority Rev. (Student Services, Inc., Student Housing Project at Millersville University of Pennsylvania), 5%, 7/01/2039 | 485,000 | 512,912 | ||||||
East Hempfield Township, PA, Industrial Development Authority Rev. (Student Services, Inc., Student Housing Project at Millersville University of Pennsylvania), 5%, 7/01/2046 | 265,000 | 279,350 | ||||||
Lancaster County, PA, Hospital Authority Health System Rev. (Masonic Villages Project), 5%, 11/01/2027 | 670,000 | 759,887 | ||||||
Lancaster County, PA, Hospital Authority Health System Rev. (Masonic Villages Project), 5%, 11/01/2035 | 250,000 | 275,960 | ||||||
Lehigh County, PA, Water and Sewer Authority Rev. (Allentown Concession), “A”, 5%, 12/01/2043 | 9,610,000 | 10,524,872 | ||||||
Lehigh County, PA, Water and Sewer Authority Rev. (Allentown Concession), Capital Appreciation, “B”, 0%, 12/01/2036 | 12,095,000 | 5,528,020 | ||||||
Luzerne County, PA, “A”, AGM, 5%, 12/15/2019 | 510,000 | 531,869 | ||||||
Luzerne County, PA, “A”, AGM, 5%, 12/15/2021 | 755,000 | 826,884 | ||||||
Luzerne County, PA, “A”, AGM, 5%, 12/15/2023 | 675,000 | 758,005 | ||||||
Luzerne County, PA, “A”, AGM, 5%, 12/15/2024 | 690,000 | 779,873 | ||||||
Luzerne County, PA, “A”, AGM, 5%, 12/15/2026 | 630,000 | 718,061 | ||||||
Luzerne County, PA, “A”, AGM, 5%, 11/15/2029 | 5,835,000 | 6,560,757 | ||||||
Luzerne County, PA, “A”, AGM, 5%, 12/15/2029 | 1,095,000 | 1,241,588 | ||||||
Montgomery County, PA, Industrial Development Authority Pollution Control Rev. (Peco Energy Company Project), “A”, 2.55%, 6/01/2029 (Put Date 6/01/2020) | 1,095,000 | 1,097,278 | ||||||
Montgomery County, PA, Industrial Development Authority Rev. (Whitemarsh Continuing Care Retirement Community Project), 5.375%, 1/01/2050 | 1,015,000 | 1,029,515 | ||||||
Northeastern, PA, Hospital & Education Authority Rev. (Wilkes University), “B”, 5.25%, 3/01/2031 | 1,140,000 | 1,278,065 | ||||||
Northeastern, PA, Hospital & Education Authority Rev. (Wilkes University), “B”, 5.25%, 3/01/2037 | 1,780,000 | 1,961,578 | ||||||
Pennsylvania Economic Development Finance Authority Rev, Solid Waste Disposal Rev. (Waste Management, Inc. Project), 1.6%, 8/01/2045 (Put Date 5/01/2018) | 4,845,000 | 4,843,256 | ||||||
Pennsylvania Economic Development Financing Authority Rev., Solid Waste Refunding (Republic Services, Inc. Project), “A”, 1.5%, 4/01/2019 (Put Date 7/01/2018) | 2,465,000 | 2,465,000 | ||||||
Pennsylvania Economic Development Financing Authority Rev., Solid Waste Refunding (Republic Services, Inc. Project), “B”, 1.45%, 12/01/2030 (Put Date 7/01/2018) | 2,030,000 | 2,030,000 |
58
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Pennsylvania - continued | ||||||||
Pennsylvania Economic Development Financing Authority, Sewer Sludge Disposal Rev. (Philadelphia Biosolids Facility), 6.25%, 1/01/2032 | $ | 3,110,000 | $ | 3,284,720 | ||||
Pennsylvania Higher Educational Facilities Authority Rev. (Edinboro University Foundation), 5.8%, 7/01/2030 (Prerefunded 7/01/2020) | 510,000 | 554,074 | ||||||
Pennsylvania Higher Educational Facilities Authority Rev. (Shippensburg University Student Services), 6.25%, 10/01/2043 | 2,305,000 | 2,531,996 | ||||||
Pennsylvania Higher Educational Facilities Authority Rev. (Shippensburg University Student Services), 5%, 10/01/2044 | 3,915,000 | 4,071,326 | ||||||
Philadelphia, PA, Airport Rev., “B”, 5%, 7/01/2033 | 4,215,000 | 4,770,916 | ||||||
Philadelphia, PA, Airport Rev., “B”, 5%, 7/01/2034 | 250,000 | 282,125 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (MaST Charter School Project), 6%, 8/01/2035 (Prerefunded 8/01/2020) | 415,000 | 454,450 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (MaST Charter School Project), “A”, 5.625%, 8/01/2036 | 315,000 | 322,434 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (MaST Charter School Project), “A”, 5.25%, 8/01/2046 | 2,090,000 | 2,139,387 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (MaST Charter School Project), “A”, 5.75%, 8/01/2046 | 1,700,000 | 1,739,338 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (MaST Charter School Project), “A”, 5.375%, 8/01/2051 | 1,530,000 | 1,568,571 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (MaST Charter School Project), “B”, 6%, 8/01/2051 | 1,180,000 | 1,218,893 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (Philadelphia Performing Arts Charter School Project), 6.5%, 6/15/2033 | 2,425,000 | 2,555,465 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (Philadelphia Performing Arts Charter School Project), 6.75%, 6/15/2043 | 1,175,000 | 1,238,250 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (Tacony Academy Charter School Project), “A-1”, 6.75%, 6/15/2033 | 150,000 | 164,027 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (Tacony Academy Charter School Project), “A-1”, 7%, 6/15/2043 | 355,000 | 390,188 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (Thomas Jefferson University), “A”, 5%, 9/01/2035 | 1,040,000 | 1,169,522 | ||||||
Philadelphia, PA, Authority for Industrial Development Rev. (Thomas Jefferson University), “A”, 5%, 9/01/2042 | 10,810,000 | 12,033,043 | ||||||
Philadelphia, PA, Authority for Industrial Development, Multifamily Housing Rev. (University Square Apartment Project- Section 8), “I”, 5%, 12/01/2037 | 2,080,000 | 2,256,238 |
59
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Pennsylvania - continued | ||||||||
Philadelphia, PA, Authority for Industrial Development, Multifamily Housing Rev. (University Square Apartment Project- Section 8), “I”, 5%, 12/01/2058 | $ | 8,300,000 | $ | 8,814,683 | ||||
Philadelphia, PA, Authority for Industrial Development, Multifamily Housing Rev. (University Square Apartment Project- Section 8), “III”, 5.25%, 12/01/2047 | 350,000 | 342,759 | ||||||
Philadelphia, PA, Authority for Industrial Development, Multifamily Housing Rev. (University Square Apartment Project- Section 8), “III”, 5.5%, 12/01/2058 | 505,000 | 493,486 | ||||||
Philadelphia, PA, Authority for Industrial Development, Senior Living Facilities Rev. (Wesley Enhanced Living Obligated Group), “A”, 5%, 7/01/2037 | 565,000 | 601,081 | ||||||
Philadelphia, PA, Authority for Industrial Development, Senior Living Facilities Rev. (Wesley Enhanced Living Obligated Group), “A”, 5%, 7/01/2042 | 1,005,000 | 1,064,426 | ||||||
Philadelphia, PA, Authority for Industrial Development, Senior Living Facilities Rev. (Wesley Enhanced Living Obligated Group), “A”, 5%, 7/01/2049 | 1,570,000 | 1,654,231 | ||||||
Philadelphia, PA, Gas Works Rev. (1998 General Ordinance), “15”, 5%, 8/01/2042 | 5,490,000 | 6,182,179 | ||||||
Philadelphia, PA, Gas Works Rev. (1998 General Ordinance), “15”, 5%, 8/01/2047 | 5,450,000 | 6,113,973 | ||||||
Philadelphia, PA, Gas Works Rev., “14”, AGM, 5%, 10/01/2033 | 2,910,000 | 3,360,061 | ||||||
Philadelphia, PA, Municipal Authority Rev., 6.5%, 4/01/2034 | 1,020,000 | 1,068,287 | ||||||
Philadelphia, PA, Redevelopment Authority Refunding Rev. (Neighborhood Transformation Initiative), BAM, 5%, 4/15/2024 | 1,900,000 | 2,075,807 | ||||||
Philadelphia, PA, School District, “A”, 5%, 9/01/2033 | 310,000 | 349,844 | ||||||
Philadelphia, PA, School District, “A”, 5%, 9/01/2035 | 770,000 | 863,278 | ||||||
Philadelphia, PA, School District, “A”, 5%, 9/01/2036 | 385,000 | 430,576 | ||||||
Philadelphia, PA, School District, “A”, 5%, 9/01/2037 | 385,000 | 429,521 | ||||||
Philadelphia, PA, School District, “A”, 5%, 9/01/2038 | 385,000 | 428,817 | ||||||
Philadelphia, PA, School District, “B”, 5%, 9/01/2043 | 1,160,000 | 1,282,519 | ||||||
Philadelphia, PA, School District, “F”, 5%, 9/01/2037 | 1,020,000 | 1,126,702 | ||||||
Philadelphia, PA, School District, “F”, 5%, 9/01/2038 | 255,000 | 281,285 | ||||||
Reading, PA, School District, “A”, 5%, 4/01/2020 | 1,000,000 | 1,053,740 | ||||||
State Public School Building Authority, PA, School Lease Rev. (The School District of Philadelphia Project), 5%, 4/01/2028 | 1,870,000 | 2,000,339 | ||||||
State Public School Building Authority, PA, School Lease Rev. (The School District of Philadelphia Project), “A”, AGM, 5%, 6/01/2030 | 2,000,000 | 2,252,640 | ||||||
State Public School Building Authority, PA, School Lease Rev. (The School District of Philadelphia Project), “A”, AGM, 5%, 6/01/2032 | 7,820,000 | 8,757,774 | ||||||
State Public School Building Authority, PA, School Lease Rev. (The School District of Philadelphia Project), “A”, AGM, 5%, 6/01/2033 | 22,255,000 | 24,870,630 |
60
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Pennsylvania - continued | ||||||||
Washington County, PA, Redevelopment Authority Refunding Rev. (Victory Centre Tax Increment Financing Project), 4%, 7/01/2023 | $ | 165,000 | $ | 165,766 | ||||
Washington County, PA, Redevelopment Authority Refunding Rev. (Victory Centre Tax Increment Financing Project), 5%, 7/01/2035 | 80,000 | 82,106 | ||||||
West Shore, PA, Area Authority Rev. (Messiah Village Project) “A”, 5%, 7/01/2030 | 445,000 | 479,683 | ||||||
West Shore, PA, Area Authority Rev. (Messiah Village Project) “A”, 5%, 7/01/2035 | 435,000 | 460,134 | ||||||
|
| |||||||
$ | 208,496,682 | |||||||
Puerto Rico - 5.8% | ||||||||
Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., “A”, ASSD GTY, 5%, 7/01/2028 | $ | 3,235,000 | $ | 3,239,982 | ||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “A”, NATL, 4.75%, 7/01/2038 | 2,980,000 | 2,699,314 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “BB”, AMBAC, 5.25%, 7/01/2018 | 790,000 | 793,160 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “CC”, AGM, 5.5%, 7/01/2029 | 850,000 | 925,862 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “CC”, AGM, 5.25%, 7/01/2032 | 625,000 | 664,313 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “CC”, AGM, 5.25%, 7/01/2033 | 1,630,000 | 1,733,864 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “CC”, AGM, 5.25%, 7/01/2036 | 2,075,000 | 2,211,120 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “D”, AGM, 5%, 7/01/2032 | 5,005,000 | 5,009,204 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “J”, NATL, 5%, 7/01/2029 | 365,000 | 352,481 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “L”, AMBAC, 5.25%, 7/01/2038 | 17,370,000 | 16,842,299 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “L”, ASSD GTY, 5.25%, 7/01/2041 | 4,305,000 | 4,608,287 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “L”, NATL, 5.25%, 7/01/2035 | 8,390,000 | 7,978,219 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “M”, ASSD GTY, 5%, 7/01/2032 | 660,000 | 660,733 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, AMBAC, 5.25%, 7/01/2030 | 3,225,000 | 3,216,131 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, AMBAC, 5.25%, 7/01/2031 | 1,800,000 | 1,784,628 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, ASSD GTY, 5.25%, 7/01/2034 | 3,880,000 | 4,129,057 |
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Puerto Rico - continued | ||||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, ASSD GTY, 5.25%, 7/01/2036 | $ | 5,510,000 | $ | 5,871,125 | ||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, NATL, 5.25%, 7/01/2032 | 985,000 | 952,603 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “N”, NATL, 5.25%, 7/01/2033 | 3,330,000 | 3,205,291 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., “Y”, AGM, 6.25%, 7/01/2021 | 6,740,000 | 7,181,605 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., Capital Appreciation, “A”, AMBAC, 0%, 7/01/2018 | 100,000 | 99,008 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., Capital Appreciation, “N”, AMBAC, 0%, 7/01/2019 | 500,000 | 474,795 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Rev., Capital Appreciation, “N”, AMBAC, 0%, 7/01/2020 | 880,000 | 799,858 | ||||||
Commonwealth of Puerto Rico Highway & Transportation Authority Unrefunded Rev., “A”, NATL, 5%, 7/01/2038 | 570,000 | 519,253 | ||||||
Commonwealth of Puerto Rico, “A”, NATL, 5.5%, 7/01/2020 | 2,890,000 | 2,932,396 | ||||||
Commonwealth of Puerto Rico, “A”, NATL, 5.5%, 7/01/2021 | 570,000 | 579,263 | ||||||
Commonwealth of Puerto Rico, Infrastructure Financing Authority, Capital Appreciation, “A”, AMBAC, 0%, 7/01/2034 | 15,570,000 | 6,102,350 | ||||||
Commonwealth of Puerto Rico, Infrastructure Financing Authority, Capital Appreciation, “A”, AMBAC, 0%, 7/01/2035 | 2,360,000 | 873,153 | ||||||
Commonwealth of Puerto Rico, Public Improvement, “A”, AGM, 5%, 7/01/2035 | 10,035,000 | 10,323,908 | ||||||
Commonwealth of Puerto Rico, Public Improvement, “A”, ASSD GTY, 3.021%, 7/01/2018 | 4,365,000 | 4,366,309 | ||||||
Commonwealth of Puerto Rico, Public Improvement, “A”, ASSD GTY, 5.5%, 7/01/2029 | 2,415,000 | 2,622,545 | ||||||
Commonwealth of Puerto Rico, Public Improvement, “A-4”, AGM, 5.25%, 7/01/2030 | 785,000 | 817,295 | ||||||
Commonwealth of Puerto Rico, Public Improvement, “C”, AGM, 5.25%, 7/01/2027 | 285,000 | 286,713 | ||||||
Commonwealth of Puerto Rico, Public Improvement, “C-7”, NATL, 6%, 7/01/2027 | 2,560,000 | 2,565,504 | ||||||
Commonwealth of Puerto, Rico Infrastructure Financing Authority Rev., “C”, AMBAC, 5.5%, 7/01/2025 | 640,000 | 661,165 | ||||||
Puerto Rico Convention Center District Authority, Hotel Occupancy Tax Rev., “A”, AMBAC, 5%, 7/01/2020 | 510,000 | 510,898 | ||||||
Puerto Rico Convention Center District Authority, Hotel Occupancy Tax Rev., “A”, AMBAC, 5%, 7/01/2031 | 7,015,000 | 6,790,169 | ||||||
Puerto Rico Electric Power Authority Rev., “DDD”, AGM, 3.625%, 7/01/2023 | 445,000 | 438,356 | ||||||
Puerto Rico Electric Power Authority Rev., “DDD”, AGM, 3.65%, 7/01/2024 | 1,915,000 | 1,872,985 |
62
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Puerto Rico - continued | ||||||||
Puerto Rico Electric Power Authority Rev., “MM”, NATL, 5%, 7/01/2020 | $ | 50,000 | $ | 50,208 | ||||
Puerto Rico Electric Power Authority Rev., “NN”, NATL, 5.25%, 7/01/2022 | 1,505,000 | 1,517,401 | ||||||
Puerto Rico Electric Power Authority Rev., “NN”, NATL, 4.75%, 7/01/2033 | 225,000 | 208,406 | ||||||
Puerto Rico Electric Power Authority Rev., “PP”, NATL, 5%, 7/01/2022 | 905,000 | 904,457 | ||||||
Puerto Rico Electric Power Authority Rev., “PP”, NATL, 5%, 7/01/2024 | 160,000 | 158,893 | ||||||
Puerto Rico Electric Power Authority Rev., “PP”, NATL, 5%, 7/01/2025 | 210,000 | 207,608 | ||||||
Puerto Rico Electric Power Authority Rev., “RR”, ASSD GTY, 5%, 7/01/2028 | 110,000 | 110,174 | ||||||
Puerto Rico Electric Power Authority Rev., “RR”, NATL, 5%, 7/01/2022 | 520,000 | 519,688 | ||||||
Puerto Rico Electric Power Authority Rev., “SS”, ASSD GTY, 4.375%, 7/01/2030 | 230,000 | 226,322 | ||||||
Puerto Rico Electric Power Authority Rev., “SS”, NATL, 5%, 7/01/2019 | 4,730,000 | 4,730,851 | ||||||
Puerto Rico Electric Power Authority Rev., “SS”, NATL, 5%, 7/01/2020 | 560,000 | 560,039 | ||||||
Puerto Rico Electric Power Authority Rev., “TT”, NATL, 5%, 7/01/2024 | 970,000 | 963,288 | ||||||
Puerto Rico Electric Power Authority Rev., “TT”, NATL, 5%, 7/01/2026 | 35,000 | 34,400 | ||||||
Puerto Rico Electric Power Authority Rev., “UU”, AGM, 5%, 7/01/2022 | 360,000 | 360,968 | ||||||
Puerto Rico Electric Power Authority Rev., “UU”, ASSD GTY, 4.25%, 7/01/2027 | 1,385,000 | 1,383,878 | ||||||
Puerto Rico Electric Power Authority Rev., “UU”, NATL, 5%, 7/01/2019 | 730,000 | 733,015 | ||||||
Puerto Rico Electric Power Authority Rev., “V”, AGM, 5.25%, 7/01/2027 | 90,000 | 96,246 | ||||||
Puerto Rico Electric Power Authority Rev., “VV”, NATL, 5.25%, 7/01/2025 | 280,000 | 280,991 | ||||||
Puerto Rico Electric Power Authority Rev., “VV”, NATL, 5.25%, 7/01/2026 | 765,000 | 764,518 | ||||||
Puerto Rico Electric Power Authority Rev., “VV”, NATL, 5.25%, 7/01/2029 | 2,295,000 | 2,264,178 | ||||||
Puerto Rico Electric Power Authority Rev., “VV”, NATL, 5.25%, 7/01/2030 | 3,025,000 | 2,965,891 | ||||||
Puerto Rico Electric Power Authority Rev., “VV”, NATL, 5.25%, 7/01/2032 | 1,420,000 | 1,373,296 |
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Puerto Rico - continued | ||||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Educational Facilities Rev. (University Plaza Project), NATL, 5%, 7/01/2033 | $ | 2,805,000 | $ | 2,628,790 | ||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5%, 4/01/2018 | 305,000 | 305,000 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 4%, 4/01/2020 | 150,000 | 146,207 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5%, 3/01/2021 | 45,000 | 44,831 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5%, 4/01/2021 | 520,000 | 515,003 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.375%, 12/01/2021 | 470,000 | 468,238 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5%, 4/01/2022 | 600,000 | 583,320 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5%, 3/01/2026 | 155,000 | 146,091 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5%, 4/01/2027 | 2,205,000 | 2,056,162 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.5%, 12/01/2031 | 690,000 | 639,975 | ||||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.125%, 4/01/2032 | 735,000 | 652,313 |
64
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Portfolio of Investments – 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%, 3/01/2036 | $ | 790,000 | $ | 677,425 | ||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.375%, 4/01/2042 | 545,000 | 468,700 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2018 | 480,000 | 482,208 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2023 | 3,755,000 | 3,875,273 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2024 | 7,285,000 | 7,525,041 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2027 | 4,970,000 | 5,118,504 | ||||||
Puerto Rico Infrastructure Financing Authority Special Tax Rev., “C”, AMBAC, 5.5%, 7/01/2028 | 755,000 | 775,211 | ||||||
Puerto Rico Municipal Finance Agency, “A”, AGM, 5%, 8/01/2027 | 190,000 | 190,334 | ||||||
Puerto Rico Public Buildings Authority Government Facilities Rev., “M-3”, NATL, 6%, 7/01/2023 | 1,100,000 | 1,146,057 | ||||||
Puerto Rico Public Buildings Authority Government Facilities Rev., “M-3”, NATL, 6%, 7/01/2027 | 1,600,000 | 1,603,440 | ||||||
Puerto Rico Public Buildings Authority Government Facilities Rev., “M-3”, NATL, 6%, 7/01/2028 | 345,000 | 345,693 | ||||||
Puerto Rico Public Buildings Authority Government Facilities Rev., “N”, ASSD GTY, 5%, 7/01/2032 | 400,000 | 400,336 | ||||||
Puerto Rico Public Buildings Authority Rev., “M-2”, AMBAC, 10%, 7/01/2035 | 4,660,000 | 4,876,643 | ||||||
Puerto Rico Public Buildings Authority Rev., Guaranteed (Government Facilities), “I”, ASSD GTY, 5%, 7/01/2036 | 425,000 | 425,094 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “A”, 5.5%, 8/01/2028 (Prerefunded 8/01/2019) | 45,000 | 47,235 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., “A”, AGM, 5%, 8/01/2040 | 1,515,000 | 1,534,498 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, AMBAC, 0%, 8/01/2054 | 7,480,000 | 963,274 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2040 | 4,650,000 | 1,210,348 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2041 | 3,740,000 | 920,676 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2042 | 8,265,000 | 1,920,621 |
65
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Puerto Rico - continued | ||||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2043 | $ | 3,620,000 | $ | 795,061 | ||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2044 | 11,170,000 | 2,325,706 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2045 | 1,225,000 | 241,852 | ||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax Rev., Capital Appreciation, “A”, NATL, 0%, 8/01/2046 | 25,085,000 | 4,697,417 | ||||||
University of Puerto Rico Rev., “P”, NATL, 5%, 6/01/2025 | 350,000 | 346,056 | ||||||
|
| |||||||
$ | 189,208,550 | |||||||
Rhode Island - 0.7% | ||||||||
Providence, RI, “A”, 5%, 1/15/2025 | $ | 1,345,000 | $ | 1,487,987 | ||||
Rhode Island Health & Educational Building Corp. Rev., Hospital Financing (Lifespan Obligated Group), “A”, ASSD GTY, 7%, 5/15/2039 (Prerefunded 5/15/2019) | 7,645,000 | 8,095,520 | ||||||
Rhode Island Student Loan Authority, Student Loan Rev., “A”, 3%, 12/01/2021 | 4,890,000 | 4,873,081 | ||||||
Rhode Island Student Loan Authority, Student Loan Rev., “A”, 5%, 12/01/2021 | 1,120,000 | 1,210,406 | ||||||
Rhode Island Student Loan Authority, Student Loan Rev., “A”, 3.25%, 12/01/2022 | 1,500,000 | 1,495,455 | ||||||
Rhode Island Student Loan Authority, Student Loan Rev., “A”, 5%, 12/01/2022 | 700,000 | 764,589 | ||||||
Rhode Island Student Loan Authority, Student Loan Rev., “A”, 3.375%, 12/01/2023 | 2,500,000 | 2,491,625 | ||||||
Rhode Island Student Loan Authority, Student Loan Rev., “A”, 3.8%, 12/01/2031 | 2,500,000 | 2,549,725 | ||||||
|
| |||||||
$ | 22,968,388 | |||||||
South Carolina - 1.6% | ||||||||
Chesterfield County, SC, School District, 5%, 3/01/2025 | $ | 2,250,000 | $ | 2,490,165 | ||||
Greenwood, SC, Fifty School Facilities, Inc., Installment Purchase Rev. (Greenwood School District No. 50), BAM, 5%, 12/01/2028 | 2,000,000 | 2,300,060 | ||||||
Lexington County, SC, Health Services District, Inc., Hospital Refunding Rev., 5%, 11/01/2028 | 650,000 | 752,817 | ||||||
Lexington County, SC, Health Services District, Inc., Hospital Refunding Rev., 5%, 11/01/2029 | 500,000 | 577,295 | ||||||
North Charleston, SC, Limited Obligation Bond (Hospitality Fee Pledge), “A”, 5%, 10/01/2040 | 3,880,000 | 4,280,494 | ||||||
Piedmont, SC, Municipal Power Agency, FGIC, 6.25%, 1/01/2021 | 4,150,000 | 4,612,684 | ||||||
Richland County, SC, Environmental Improvement Rev. (International Paper), “A”, 3.875%, 4/01/2023 | 5,750,000 | 6,113,457 |
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
South Carolina - continued | ||||||||
South Carolina Economic Development Authority Hospital Rev. (Conway Hospital, Inc.), 5.25%, 7/01/2047 | $ | 8,000,000 | $ | 8,867,760 | ||||
South Carolina Economic Development Authority, Residential Care Facilities Rev. (South Carolina Episcopal Home at Still Hopes), 5%, 4/01/2047 | 835,000 | 866,229 | ||||||
South Carolina Economic Development Authority, Residential Care Facilities Rev. (South Carolina Episcopal Home at Still Hopes), 5%, 4/01/2052 | 260,000 | 268,364 | ||||||
South Carolina Ports Authority, 5.25%, 7/01/2050 | 3,075,000 | 3,402,026 | ||||||
South Carolina Public Service Authority Rev., “A”, 5.125%, 12/01/2043 | 2,745,000 | 2,944,452 | ||||||
South Carolina Public Service Authority Rev., “B”, 5.125%, 12/01/2043 | 6,550,000 | 7,025,923 | ||||||
South Carolina Public Service Authority Rev., “C”, 5%, 12/01/2036 | 2,920,000 | 3,103,230 | ||||||
University of South Carolina, Athletic Facilities Rev., “A”, 5%, 5/01/2034 | 1,250,000 | 1,445,200 | ||||||
University of South Carolina, Athletic Facilities Rev., “A”, 5%, 5/01/2035 | 1,415,000 | 1,629,896 | ||||||
University of South Carolina, Athletic Facilities Rev., “A”, 5%, 5/01/2036 | 1,045,000 | 1,201,029 | ||||||
|
| |||||||
$ | 51,881,081 | |||||||
South Dakota - 0.1% | ||||||||
South Dakota Educational Enhancement Funding Corp., | ||||||||
Tobacco Settlement Rev., “B”, 5%, 6/01/2024 | $ | 1,000,000 | $ | 1,109,060 | ||||
South Dakota Educational Enhancement Funding Corp., Tobacco Settlement Rev., “B”, 5%, 6/01/2025 | 1,000,000 | 1,101,970 | ||||||
South Dakota Educational Enhancement Funding Corp., Tobacco Settlement Rev., “B”, 5%, 6/01/2026 | 1,400,000 | 1,535,716 | ||||||
|
| |||||||
$ | 3,746,746 | |||||||
Tennessee - 2.0% | ||||||||
Chattanooga, TN, Health Educational & Housing Facility Board Rev. (Catholic Health Initiatives), “A”, 5.25%, 1/01/2045 | $ | 10,310,000 | $ | 11,036,030 | ||||
Claiborne County, TN, Industrial Development Board Rev. (Lincoln Memorial University Project), 6.125%, 10/01/2040 | 3,000,000 | 3,182,130 | ||||||
Knox County, TN, Health, Educational & Housing Facility Board Hospital Rev. (Covenant Health), “A”, 5%, 1/01/2042 | 9,315,000 | 10,256,001 | ||||||
Knox County, TN, Health, Educational & Housing Facility Board Hospital Rev. (Covenant Health), “A”, 5%, 1/01/2047 | 3,940,000 | 4,322,535 | ||||||
Knox County, TN, Health, Educational & Housing Facility Board Rev. (University Health System, Inc.), 5%, 4/01/2030 | 790,000 | 878,828 | ||||||
Knox County, TN, Health, Educational & Housing Facility Board Rev. (University Health System, Inc.), 5%, 4/01/2036 | 1,980,000 | 2,156,438 |
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Tennessee - continued | ||||||||
Metropolitan Government of Nashville & Davidson County, TN, Electric Rev., “A”, 5%, 5/15/2029 (Prerefunded 5/15/2021) | $ | 4,765,000 | $ | 5,223,536 | ||||
Metropolitan Government of Nashville & Davidson County, TN, Electric Rev., “A”, 5%, 5/15/2030 (Prerefunded 5/15/2021) | 2,500,000 | 2,740,575 | ||||||
Metropolitan Government of Nashville & Davidson County, TN, Health & Educational Facilities Board Rev. (Vanderbilt University Medical Center), “A”, 5%, 7/01/2035 | 2,685,000 | 2,999,655 | ||||||
Metropolitan Government of Nashville & Davidson County, TN, Health & Educational Facilities Board Rev. (Vanderbilt University Medical Center), “A”, 5%, 7/01/2040 | 1,450,000 | 1,607,803 | ||||||
Shelby County, TN, Health, Educational & Housing Facilities Board Rev. (Rhodes College), 4%, 8/01/2036 | 920,000 | 971,272 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2019 | 1,500,000 | 1,567,905 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2022 | 1,665,000 | 1,854,344 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2023 | 2,385,000 | 2,693,070 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2024 | 2,215,000 | 2,525,809 | ||||||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2026 | 2,805,000 | 3,261,962 | ||||||
Tennessee Housing Development Agency, Residential Financing Program Rev., “1”, 4%, 1/01/2043 | 2,910,000 | 3,081,574 | ||||||
Tennessee Housing Development Agency, Residential Financing Program Rev., “2-C”, 4%, 1/01/2045 | 1,715,000 | 1,794,696 | ||||||
Tennessee School Board Authority, Higher Education Facilities Rev., 5.125%, 5/01/2033 (Prerefunded 5/01/2018) | 270,000 | 270,740 | ||||||
Tennessee School Board Authority, Higher Education Facilities Rev., 5.125%, 5/01/2033 (Prerefunded 5/01/2018) | 1,230,000 | 1,233,419 | ||||||
|
| |||||||
$ | 63,658,322 | |||||||
Texas - 6.1% | ||||||||
Arlington, TX, (Tarrant County), Senior Lien Special Tax Rev., “A”, AGM, 5%, 2/15/2037 | $ | 1,200,000 | $ | 1,373,820 | ||||
Arlington, TX, (Tarrant County), Senior Lien Special Tax Rev., “A”, AGM, 5%, 2/15/2038 | 980,000 | 1,117,523 | ||||||
Arlington, TX, (Tarrant County), Senior Lien Special Tax Rev., “A”, AGM, 5%, 2/15/2043 | 5,100,000 | 5,765,244 | ||||||
Arlington, TX, Higher Education Finance Corp. (Harmony Public Schools), “A”, PSF, 5%, 2/15/2041 | 6,000,000 | 6,736,740 | ||||||
Austin, TX, (Travis, Williamson and Hays Counties) Airport System Rev., “B”, 5%, 11/15/2041 | 1,070,000 | 1,198,603 |
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Texas - continued | ||||||||
Austin, TX, Convention Center (Convention Enterprises, Inc.), “A”, 5%, 1/01/2029 | $ | 715,000 | $ | 817,710 | ||||
Austin, TX, Convention Center (Convention Enterprises, Inc.), “A”, 5%, 1/01/2031 | 1,055,000 | 1,205,496 | ||||||
Austin, TX, Convention Center (Convention Enterprises, Inc.), “A”, 5%, 1/01/2034 | 200,000 | 219,732 | ||||||
Austin, TX, Convention Center (Convention Enterprises, Inc.), “B”, 5%, 1/01/2026 | 490,000 | 547,546 | ||||||
Austin, TX, Convention Center (Convention Enterprises, Inc.), “B”, 5%, 1/01/2028 | 315,000 | 353,846 | ||||||
Austin, TX, Convention Center (Convention Enterprises, Inc.), “B”, 5%, 1/01/2030 | 460,000 | 513,038 | ||||||
Austin, TX, Water & Wastewater System Rev., 5%, 11/15/2027 | 3,000,000 | 3,355,590 | ||||||
Bell County, TX, Health Facility Development Corp. (Advanced Living Technologies, Inc.), 8%, 12/15/2036 (a)(d) | 1,595,000 | 39,875 | ||||||
Brazos River, TX, Brazoria County Environmental Rev. (Dow Chemical, Co.), “A-3”, 5.125%, 5/15/2033 | 2,100,000 | 2,147,607 | ||||||
Brazos River, TX, Harbor Navigation District (Dow Chemical Co.), “A”, 5.95%, 5/15/2033 | 7,310,000 | 7,494,724 | ||||||
Clifton, TX, Higher Education Finance Corp. Rev. (Idea Public Schools), “A”, PSF, 5%, 8/15/2039 | 3,190,000 | 3,620,969 | ||||||
Clifton, TX, Higher Education Finance Corp. Rev. (Uplift Education), “A”, 6.125%, 12/01/2040 (Prerefunded 12/01/2020) | 2,355,000 | 2,612,590 | ||||||
Clifton, TX, Higher Education Finance Corp. Rev. (Uplift Education), “A”, 6.25%, 12/01/2045 (Prerefunded 12/01/2020) | 1,425,000 | 1,585,455 | ||||||
Dallas and Fort Worth, TX, International Airport Rev., “C”, 5%, 11/01/2045 | 1,875,000 | 2,031,094 | ||||||
Dallas, TX, Waterworks & Sewer System Rev., 5%, 10/01/2039 (Prerefunded 10/01/2020) | 1,750,000 | 1,882,895 | ||||||
Dallas, TX, Waterworks & Sewer System Rev., 5%, 10/01/2039 | 8,250,000 | 8,824,282 | ||||||
Decatur Hospital Authority Rev. (Wise Regional Health System), “A”, 5.25%, 9/01/2044 | 415,000 | 443,822 | ||||||
El Paso, TX, Water & Sewer Rev., 5%, 3/01/2028 | 455,000 | 501,947 | ||||||
Fort Worth, TX, Independent School District, Unlimited Tax School Building, PSF, 5%, 2/15/2039 | 3,685,000 | 4,097,499 | ||||||
Gulf Coast, TX, Industrial Development Authority Rev. (Microgy Holdings Project), 7%, 12/01/2036 (a)(d) | 116,013 | 1 | ||||||
Harris County, TX, Cultural Education Facilities Finance Corp., Medical Facilities Rev. (Baylor College of Medicine), “D”, 5.625%, 11/15/2032 (Prerefunded 11/15/2018) | 8,235,000 | 8,436,428 | ||||||
Harris County, TX, Cultural Education Facilities Finance Corp., Thermal Utilities Rev. (Teco Project), “A”, 5.25%, 11/15/2035 (Prerefunded 11/15/2019) | 1,560,000 | 1,648,936 |
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Texas - continued | ||||||||
Harris County, TX, Health Facilities Development Corp., Hospital Rev. (Memorial Hermann Healthcare Systems), “B”, 7%, 12/01/2027 (Prerefunded 12/01/2018) | $ | 1,795,000 | $ | 1,858,687 | ||||
Harris County, TX, Health Facilities Development Corp., Hospital Rev. (Memorial Hermann Healthcare Systems), “B”, 7.25%, 12/01/2035 (Prerefunded 12/01/2018) | 2,050,000 | 2,126,075 | ||||||
Harris County-Houston, TX, Sports Authority Rev., “C”, 5%, 11/15/2032 | 225,000 | 247,842 | ||||||
Harris County-Houston, TX, Sports Authority Rev., “C”, 5%, 11/15/2033 | 545,000 | 598,290 | ||||||
Harris County-Houston, TX, Sports Authority Rev., Capital Appreciation, “A”, AGM, 0%, 11/15/2041 | 900,000 | 324,063 | ||||||
Harris County-Houston, TX, Sports Authority Rev., Capital Appreciation, “A”, AGM, 0%, 11/15/2046 | 2,250,000 | 625,342 | ||||||
Houston, TX, Airport System Rev., “B”, 5%, 7/01/2026 | 1,855,000 | 2,023,415 | ||||||
Houston, TX, Airport System Rev., Special Facilities Rev. (United Airlines, Inc. Terminal E Project), 4.5%, 7/01/2020 | 855,000 | 893,783 | ||||||
Houston, TX, Airport System Rev., Special Facilities Rev. (United Airlines, Inc. Terminal E Project), 4.75%, 7/01/2024 | 2,465,000 | 2,702,182 | ||||||
Houston, TX, Airport System Rev., Special Facilities Rev. (United Airlines, Inc. Terminal E Project), 5%, 7/01/2029 | 2,135,000 | 2,324,118 | ||||||
Houston, TX, Airport System Rev., Special Facilities Rev. (United Airlines, Inc. Terminal Improvement Projects), “B-1”, 5%, 7/15/2030 | 725,000 | 791,424 | ||||||
Houston, TX, Airport System Rev., Special Facilities Rev. (United Airlines, Inc. Terminal Improvement Projects), “B-2”, 5%, 7/15/2020 | 3,215,000 | 3,397,323 | ||||||
Houston, TX, Airport System Rev., Subordinate Lien, “A”, 5%, 7/01/2031 | 2,310,000 | 2,496,556 | ||||||
Houston, TX, Industrial Development Corp. (United Parcel Service, Inc.), 6%, 3/01/2023 | 90,000 | 90,164 | ||||||
Irving, TX, Hospital Authority Rev. (Baylor Scott & White Medical Center-Irving), “A”, 5%, 10/15/2044 | 1,565,000 | 1,701,343 | ||||||
Katy, TX, Independent School District Rev. (Fort Bend, Harris, & Waller Counties), “D”, PSF, 5%, 2/15/2032 | 1,000,000 | 1,172,500 | ||||||
La Vernia, TX, Higher Education Finance Corp. Rev. (KIPP, Inc.), “A”, 6.25%, 8/15/2039 (Prerefunded 8/15/2019) | 1,470,000 | 1,558,288 | ||||||
La Vernia, TX, Higher Education Finance Corp. Rev. (Lifeschool of Dallas), ’’A“, 7.5%, 8/15/2041 (Prerefunded 8/15/2019) | 4,230,000 | 4,549,111 | ||||||
Matagorda County, TX, Pollution Control Rev. (Central Power & Light Co.), ”A“, 6.3%, 11/01/2029 | 2,520,000 | 2,702,902 | ||||||
Mesquite, TX, Health Facilities Development Corp., Retirement Facility Rev. (Christian Care Centers, Inc.), 5%, 2/15/2030 | 770,000 | 819,888 |
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Texas - continued | ||||||||
Mission, TX, Economic Development Corp., Solid Waste Disposal Rev. (Republic Services, Inc. Project), ”A“, 1.45%, 1/01/2020 (Put Date 7/01/2018) | $ | 10,010,000 | $ | 10,010,000 | ||||
New Hope, TX, Cultural Education Facilities Finance Corp., Capital Improvement Rev. (CHF - Collegiate Housing Denton, L.L.C. - Texas Woman’s University Housing Project), “A-1”, AGM, 5%, 7/01/2038 | 490,000 | 543,513 | ||||||
New Hope, TX, Cultural Education Facilities Finance Corp., Capital Improvement Rev. (CHF - Collegiate Housing Denton, L.L.C. - Texas Woman’s University Housing Project), “A-1”, AGM, 5%, 7/01/2048 | 735,000 | 807,383 | ||||||
New Hope, TX, Cultural Education Facilities Finance Corp., Capital Improvement Rev. (CHF - Collegiate Housing Denton, L.L.C. - Texas Woman’s University Housing Project), “A-1”, AGM, 5%, 7/01/2058 | 1,780,000 | 1,912,040 | ||||||
New Hope, TX, Cultural Education Facilities Finance Corp., Retirement Facility Rev. (MRC Senior Living - The Langford Project), ”B-1“, 3.25%, 11/15/2022 | 205,000 | 202,224 | ||||||
New Hope, TX, Cultural Education Facilities Finance Corp., Retirement Facility Rev. (MRC Senior Living - The Langford Project), ”B-2“, 3%, 11/15/2021 | 120,000 | 119,509 | ||||||
New Hope, TX, Cultural Education Facilities Finance Corp., Senior Living Rev. (4-K Housing, Inc. - Stoney Brook Project), ”A-1“, 4.25%, 7/01/2037 | 555,000 | 545,654 | ||||||
New Hope, TX, Cultural Education Facilities Finance Corp., Senior Living Rev. (4-K Housing, Inc. - Stoney Brook Project), ”A-1“, 4.5%, 7/01/2042 | 555,000 | 551,720 | ||||||
New Hope, TX, Cultural Education Facilities Finance Corp., Senior Living Rev. (4-K Housing, Inc. - Stoney Brook Project), ”A-1“, 5%, 7/01/2047 | 555,000 | 574,064 | ||||||
New Hope, TX, Cultural Education Facilities Finance Corp., Senior Living Rev. (4-K Housing, Inc. - Stoney Brook Project), ”A-1“, 4.75%, 7/01/2052 | 835,000 | 839,292 | ||||||
New Hope, TX, Cultural Education Facilities Finance Corp., Senior Living Rev. (Cardinal Bay, Inc. - Village on the Park/Carriage Inn Project), ”A-1“, 5%, 7/01/2031 | 190,000 | 213,577 | ||||||
New Hope, TX, Cultural Education Facilities Finance Corp., Senior Living Rev. (Cardinal Bay, Inc. - Village on the Park/Carriage Inn Project), ”A-1“, 4%, 7/01/2036 | 955,000 | 964,989 | ||||||
New Hope, TX, Cultural Education Facilities Finance Corp., Senior Living Rev. (Cardinal Bay, Inc. - Village on the Park/Carriage Inn Project), ”A-1“, 5%, 7/01/2046 | 6,220,000 | 6,845,421 |
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Texas - continued | ||||||||
New Hope, TX, Cultural Education Facilities Finance Corp., Senior Living Rev. (Cardinal Bay, Inc. - Village on the Park/Carriage Inn Project), ”A-1“, 5%, 7/01/2051 | $ | 1,910,000 | $ | 2,094,907 | ||||
New Hope, TX, Cultural Education Facilities Finance Corp., Senior Living Rev. (Cardinal Bay, Inc. - Village on the Park/Carriage Inn Project), ”B“, 4%, 7/01/2031 | 310,000 | 315,658 | ||||||
New Hope, TX, Cultural Education Facilities Finance Corp., Senior Living Rev. (Cardinal Bay, Inc. - Village on the Park/Carriage Inn Project), ”B“, 4.25%, 7/01/2036 | 470,000 | 480,481 | ||||||
New Hope, TX, Cultural Education Facilities Finance Corp., Senior Living Rev. (Cardinal Bay, Inc. - Village on the Park/Carriage Inn Project), ”B“, 5%, 7/01/2046 | 1,250,000 | 1,327,050 | ||||||
New Hope, TX, Cultural Education Facilities Finance Corp., Senior Living Rev. (Cardinal Bay, Inc. - Village on the Park/Carriage Inn Project), ”B“, 4.75%, 7/01/2051 | 1,090,000 | 1,134,428 | ||||||
New Hope, TX, Cultural Education Facilities Finance Corp., Senior Living Rev. (MRC Crestview Project), 5%, 11/15/2031 | 115,000 | 121,673 | ||||||
New Hope, TX, Cultural Education Facilities Finance Corp., Senior Living Rev. (MRC Crestview Project), 5%, 11/15/2036 | 75,000 | 78,249 | ||||||
New Hope, TX, Cultural Education Facilities Finance Corp., Student Housing Rev. (CHF - Collegiate Housing Stephenville III, L.L.C. - Tarleton State University Project), 5%, 4/01/2030 | 355,000 | 393,304 | ||||||
New Hope, TX, Cultural Education Facilities Finance Corp., Student Housing Rev. (CHF - Collegiate Housing Stephenville III, L.L.C. - Tarleton State University Project), 5%, 4/01/2035 | 355,000 | 383,347 | ||||||
New Hope, TX, Cultural Education Facilities Finance Corp., Student Housing Rev. (CHF - Collegiate Housing Stephenville III, L.L.C. - Tarleton State University Project), 5%, 4/01/2047 | 895,000 | 964,300 | ||||||
New Hope, TX, Cultural Education Facilities Finance Corp., Student Housing Rev. (Collegiate Housing Island Campus LLC - Texas A&M University - Corpus Christi Island Campus Project), 5%, 4/01/2037 | 840,000 | 916,852 | ||||||
New Hope, TX, Cultural Education Facilities Finance Corp., Student Housing Rev. (Collegiate Housing Island Campus LLC - Texas A&M University - Corpus Christi Island Campus Project), 5%, 4/01/2042 | 990,000 | 1,078,219 | ||||||
New Hope, TX, Cultural Education Facilities Finance Corp., Student Housing Rev. (Texas A&M University Project), ”A“, AGM, 5%, 4/01/2046 | 1,585,000 | 1,703,685 | ||||||
Newark, TX, Higher Education Finance Corp. Authority Rev. (Austin Achieve Public Schools, Inc.), ”A“, 5%, 6/15/2032 | 110,000 | 110,779 | ||||||
Newark, TX, Higher Education Finance Corp. Authority Rev. (Austin Achieve Public Schools, Inc.), ”A“, 5%, 6/15/2037 | 125,000 | 125,085 | ||||||
Newark, TX, Higher Education Finance Corp. Authority Rev. (Austin Achieve Public Schools, Inc.), ”A“, 5%, 6/15/2042 | 150,000 | 148,949 |
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Texas - continued | ||||||||
Newark, TX, Higher Education Finance Corp. Authority Rev. (Austin Achieve Public Schools, Inc.), ”A“, 5.25%, 6/15/2048 | $ | 300,000 | $ | 301,095 | ||||
Red River, TX, Education Finance Corp., Higher Education Rev. (Houston Baptist University Project), 5.5%, 10/01/2046 | 4,380,000 | 4,812,832 | ||||||
San Antonio, TX, Electric & Gas Systems Rev., 5%, 2/01/2031 | 6,000,000 | 6,958,440 | ||||||
San Juan, TX, Higher Education Finance Authority Education Rev. (Idea Public Schools), ”A“, 6.7%, 8/15/2040 (Prerefunded 8/15/2020) | 2,795,000 | 3,103,261 | ||||||
Spring Independent School District, TX, Unlimited Tax School Building, PSF, 5%, 8/15/2042 | 10,000,000 | 11,469,800 | ||||||
Tarrant County, TX, Cultural Education Facilities Finance Corp. Retirement Facility Rev. (Air Force Village Obligated Group Project), 6.125%, 11/15/2029 (Prerefunded 11/15/2019) | 395,000 | 422,026 | ||||||
Tarrant County, TX, Cultural Education Facilities Finance Corp. Retirement Facility Rev. (Air Force Village Obligated Group Project), 6.375%, 11/15/2044 (Prerefunded 11/15/2019) | 3,100,000 | 3,324,378 | ||||||
Tarrant County, TX, Cultural Education Facilities Finance Corp. Retirement Facility Rev. (Barton Creek Senior Living Center, Inc., Querencia Project), 5%, 11/15/2030 | 1,160,000 | 1,233,115 | ||||||
Tarrant County, TX, Cultural Education Facilities Finance Corp. Retirement Facility Rev. (Barton Creek Senior Living Center, Inc., Querencia Project), 5%, 11/15/2035 | 1,385,000 | 1,456,521 | ||||||
Tarrant County, TX, Cultural Education Facilities Finance Corp. Retirement Facility Rev. (Barton Creek Senior Living Center, Inc., Querencia Project), 5%, 11/15/2040 | 1,505,000 | 1,573,733 | ||||||
Tarrant County, TX, Cultural Education Facilities Finance Corp. Retirement Facility Rev. (Buckner Senior Living - Ventana Project), ”B-3“, 3.875%, 11/15/2022 | 360,000 | 360,126 | ||||||
Tarrant County, TX, Cultural Education Facilities Finance Corp. Retirement Facility Rev. (Stayton at Museum Way), 8.25%, 11/15/2044 | 8,245,000 | 7,284,128 | ||||||
Tarrant County, TX, Cultural Education Facilities Finance Corp. Retirement Facility Rev. (Trinity Terrace Project), ”A-1“, 5%, 10/01/2044 | 785,000 | 830,891 | ||||||
Texas Private Activity Surface Transportation Corp. Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 7%, 12/31/2038 |
| 1,495,000 |
|
| 1,758,090 |
| ||
Texas Private Activity Surface Transportation Corp. Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 6.75%, 6/30/2043 | 1,195,000 | 1,386,176 | ||||||
Texas Public Finance Authority Rev. (Texas Southern University), BAM, 5%, 5/01/2028 | 1,000,000 | 1,144,820 | ||||||
Texas State University, Financing System Rev., ”A“, 5%, 3/15/2032 | 5,000,000 | 5,826,700 |
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Texas - continued | ||||||||
Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7%, 11/01/2030 (Prerefunded 11/01/2020) | $ | 590,000 | $ | 664,063 | ||||
Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7.125%, 11/01/2040 (Prerefunded 11/01/2020) | 2,575,000 | 2,906,299 | ||||||
Travis County, TX, Health Facilities Development Corp. Rev., Unrefunded Balance, (Westminster Manor Health), 7%, 11/01/2030 | 110,000 | 118,678 | ||||||
University of Texas, System Rev., ”J“, 5%, 8/15/2028 | 5,000,000 | 5,901,050 | ||||||
|
| |||||||
$ | 199,918,882 | |||||||
Utah - 0.2% | ||||||||
Intermountain Power Agency, UT, Power Supply Rev., ”A“, 5%, 7/01/2022 | $ | 1,250,000 | $ | 1,260,500 | ||||
Utah Charter School Finance Authority, Charter School Rev. (Spectrum Academy), 5%, 4/15/2030 | 150,000 | 153,282 | ||||||
Utah Charter School Finance Authority, Charter School Rev. (Spectrum Academy), 6%, 4/15/2045 | 795,000 | 826,999 | ||||||
Utah Charter School Finance Authority, Charter School Rev. (Syracuse Arts Academy Project), 5%, 4/15/2037 | 1,000,000 | 1,105,720 | ||||||
Utah Charter School Finance Authority, Charter School Rev. (Syracuse Arts Academy Project), 5%, 4/15/2042 | 3,495,000 | 3,856,732 | ||||||
|
| |||||||
$ | 7,203,233 | |||||||
Vermont - 0.1% | ||||||||
Burlington, VT, Airport Rev., ”A“, 5%, 7/01/2022 | $ | 315,000 | $ | 340,764 | ||||
Burlington, VT, Airport Rev., ”A“, 4%, 7/01/2028 | 2,020,000 | 2,095,790 | ||||||
Vermont Economic Development Authority, Solid Waste Disposal Rev. (Casella Waste Systems, Inc.), 4.625%, 4/01/2036 (Put Date 4/03/2028) | 375,000 | 374,063 | ||||||
Vermont Housing Finance Agency, Multi-Purpose Rev., ”C“, 4%, 11/01/2043 | 760,000 | 786,136 | ||||||
|
| |||||||
$ | 3,596,753 | |||||||
Virginia - 1.0% | ||||||||
Commonwealth of Virginia, Board of Transportation, Federal Transportation Grant Anticipation Refunding Rev., 5%, 3/15/2027 | $ | 5,710,000 | $ | 6,833,157 | ||||
Commonwealth of Virginia, University Health System General Rev., ”A“, 4%, 7/01/2035 | 2,000,000 | 2,094,420 | ||||||
Commonwealth of Virginia, University Health System General Rev., ”A“, 4%, 7/01/2036 | 2,730,000 | 2,852,277 | ||||||
Commonwealth of Virginia, University Health System General Rev., ”A“, 4%, 7/01/2037 | 2,905,000 | 3,028,085 |
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Virginia - continued | ||||||||
Commonwealth of Virginia, University Health System General Rev., ”A“, 4%, 7/01/2040 | $ | 6,000,000 | $ | 6,196,560 | ||||
Embrey Mill Community Development Authority, VA, Special Assessment Rev., 7.25%, 3/01/2043 | 2,125,000 | 2,310,576 | ||||||
Henrico County, VA, Industrial Development Authority Rev. (Bon Secours Health Systems, Inc.), RIBS, AGM, 8.621%, 8/23/2027 (p) | 3,850,000 | 4,706,278 | ||||||
Manassas Park, VA, Economic Development Authority Lease Rev., ”A“, 6%, 7/15/2035 (Prerefunded 7/15/2020) | 845,000 | 923,019 | ||||||
Virginia College Building Authority, Educational Facilities Rev. (Marymount University), ”B“, 5.25%, 7/01/2030 | 800,000 | 874,400 | ||||||
Virginia College Building Authority, Educational Facilities Rev. (Marymount University), ”B“, 5.25%, 7/01/2035 | 715,000 | 770,684 | ||||||
Virginia Small Business Financing Authority Rev. (Hampton University), 5.25%, 10/01/2029 | 625,000 | 711,769 | ||||||
West Point, VA, Industrial Development Authority, Solid Waste Disposal Rev. (Chesapeake Corp.), ”A“, 6.375%, 3/01/2019 (a)(d) | 529,029 | 11 | ||||||
|
| |||||||
$ | 31,301,236 | |||||||
Washington - 2.1% | ||||||||
Central Puget Sound, WA, Regional Transit Authority Sales Tax & Motor Vehicle Excise Tax Rev., ”S-1“, 5%, 11/01/2041 | $ | 13,000,000 | $ | 14,953,250 | ||||
FYI Properties Lease Rev. (Washington State Project), 5.5%, 6/01/2034 | 2,255,000 | 2,350,657 | ||||||
Seattle, WA, Port Rev., ”B“, 5%, 8/01/2024 | 3,000,000 | 3,320,010 | ||||||
State of Washington, ”A“, 5%, 7/01/2033 (Prerefunded 7/01/2018) | 5,000,000 | 5,042,650 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 6.75%, 7/01/2029 (Prerefunded 7/01/2019) | 1,450,000 | 1,535,652 | ||||||
Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 7%, 7/01/2039 (Prerefunded 7/01/2019) | 3,690,000 | 3,919,260 | ||||||
Washington Health Care Facilities Authority Rev. (Highline Medical Center), FHA, 6.25%, 8/01/2036 (Prerefunded 8/01/2018) | 5,285,000 | 5,365,913 | ||||||
Washington Health Care Facilities Authority Rev. (Virginia Mason Medical Center), 5%, 8/15/2035 | 1,480,000 | 1,649,682 | ||||||
Washington Health Care Facilities Authority Rev. (Virginia Mason Medical Center), 5%, 8/15/2036 | 985,000 | 1,095,438 | ||||||
Washington Health Care Facilities Authority Rev. (Virginia Mason Medical Center), 5%, 8/15/2037 | 1,060,000 | 1,176,176 | ||||||
Washington Higher Education Facilities Authority Rev. (Whitworth University), 5.875%, 10/01/2034 (Prerefunded 10/01/2019) | 2,165,000 | 2,294,510 |
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Washington - continued | ||||||||
Washington Housing Finance Commission Nonprofit Housing Rev. (Presbyterian Retirement Communities Northwest Projects), ”A“, 5%, 1/01/2036 | $ | 825,000 | $ | 877,800 | ||||
Washington Housing Finance Commission Nonprofit Housing Rev. (Presbyterian Retirement Communities Northwest Projects), ”A“, 5%, 1/01/2046 | 615,000 | 645,147 | ||||||
Washington Housing Finance Commission Nonprofit Housing Rev. (Presbyterian Retirement Communities Northwest Projects), ”A“, 5%, 1/01/2051 | 665,000 | 695,131 | ||||||
Washington Housing Finance Community Nonprofit Housing Rev. (Heron’s Key Senior Living), ”B-2“, 4.875%, 1/01/2022 | 145,000 | 145,054 | ||||||
Washington Motor Vehicle Fuel Tax, ”E“, 5%, 2/01/2037 | 12,000,000 | 13,437,480 | ||||||
Washington Motor Vehicle Fuel Tax, ”E“, 5%, 2/01/2039 | 7,985,000 | 8,923,238 | ||||||
|
| |||||||
$ | 67,427,048 | |||||||
West Virginia - 0.2% | ||||||||
Monongalia County, WV, Board of Education, 5%, 5/01/2029 | $ | 1,445,000 | $ | 1,589,500 | ||||
Monongalia County, WV, Building Commission Improvement Rev. (Monongalia Health System Obligated Group), 5%, 7/01/2029 | 395,000 | 443,344 | ||||||
Monongalia County, WV, Special District Excise Tax Rev., Refunding & Improvement Bonds (University Town Centre Economic Opportunity Development District), ”A“, 4.5%, 6/01/2027 | 160,000 | 159,872 | ||||||
Monongalia County, WV, Special District Excise Tax Rev., Refunding & Improvement Bonds (University Town Centre Economic Opportunity Development District), ”A“, 5.5%, 6/01/2037 | 375,000 | 387,506 | ||||||
West Virginia Hospital Finance Authority Hospital Rev. (Thomas Health System), 6.5%, 10/01/2038 | 2,110,000 | 2,129,771 | ||||||
West Virginia Water Development Authority Rev. (Loan Program II), ”A-II“, 5%, 11/01/2033 | 675,000 | 766,577 | ||||||
|
| |||||||
$ | 5,476,570 | |||||||
Wisconsin - 1.7% | ||||||||
Wisconsin Health & Educational Facilities Authority Rev. (Aurora Health Care, Inc.), ”A“, 5%, 7/15/2026 | $ | 2,215,000 | $ | 2,389,874 | ||||
Wisconsin Health & Educational Facilities Authority Rev. (Aurora Health Care, Inc.), ”A“, 5%, 7/15/2028 | 665,000 | 714,676 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (Marshfield Clinic Health System, Inc.), ”C“, 5%, 2/15/2047 | 2,465,000 | 2,687,737 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), ”A“, 7.25%, 9/15/2029 (Prerefunded 9/15/2019) | 430,000 | 463,450 |
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Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Wisconsin - continued | ||||||||
Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), ”A“, 7.625%, 9/15/2039 (Prerefunded 9/15/2019) | $ | 1,390,000 | $ | 1,505,565 | ||||
Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), ”A“, 5%, 9/15/2040 | 465,000 | 487,241 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), ”A“, 5%, 9/15/2045 | 630,000 | 658,256 | ||||||
Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), ”A“, 5%, 9/15/2050 | 2,560,000 | 2,665,958 | ||||||
Wisconsin Public Finance Authority Education Rev. (Pine Lake Preparatory), 4.95%, 3/01/2030 | 120,000 | 123,820 | ||||||
Wisconsin Public Finance Authority Education Rev. (Pine Lake Preparatory), 5.25%, 3/01/2035 | 120,000 | 123,494 | ||||||
Wisconsin Public Finance Authority Education Rev. (Pine Lake Preparatory), 5.5%, 3/01/2045 | 320,000 | 329,050 | ||||||
Wisconsin Public Finance Authority Healthcare Facility (Church Home of Hartford, Inc. Project), ”A“, 4%, 9/01/2020 | 85,000 | 87,340 | ||||||
Wisconsin Public Finance Authority Healthcare Facility (Church Home of Hartford, Inc. Project), ”A“, 5%, 9/01/2025 | 100,000 | 108,491 | ||||||
Wisconsin Public Finance Authority Healthcare Facility (Church Home of Hartford, Inc. Project), ”A“, 5%, 9/01/2030 | 165,000 | 172,913 | ||||||
Wisconsin Public Finance Authority Healthcare Facility (Church Home of Hartford, Inc. Project), ”A“, 5%, 9/01/2038 | 220,000 | 226,428 | ||||||
Wisconsin Public Finance Authority Higher Education Facilities Rev. (Gannon University Project), 5%, 5/01/2042 | 655,000 | 699,291 | ||||||
Wisconsin Public Finance Authority Higher Education Facilities Rev. (Gannon University Project), 5%, 5/01/2047 | 605,000 | 643,545 | ||||||
Wisconsin Public Finance Authority Limited Obligation Grant Rev. (American Dream at Meadowlands Project), ”A“, 6.25%, 8/01/2027 | 7,060,000 | 7,515,864 | ||||||
Wisconsin Public Finance Authority Limited Obligation PILOT Rev. (American Dream at Meadowlands Project), 7%, 12/01/2050 | 3,170,000 | 3,666,612 | ||||||
Wisconsin Public Finance Authority Rev. (Celanese Corp.), ”B“, 5%, 12/01/2025 | 620,000 | 697,959 | ||||||
Wisconsin Public Finance Authority Rev. (Denver International Airport Great Hall Project), 5%, 9/30/2037 | 3,605,000 | 3,989,401 | ||||||
Wisconsin Public Finance Authority Senior Living Refunding Bonds Rev. (Mary’s Woods at Marylhurst Project), ”A“, 5.25%, 5/15/2037 | 995,000 | 1,082,451 | ||||||
Wisconsin Public Finance Authority Senior Living Refunding Bonds Rev. (Mary’s Woods at Marylhurst Project), ”A“, 5.25%, 5/15/2042 | 960,000 | 1,040,640 |
77
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Portfolio of Investments – continued
Issuer | Shares/Par | Value ($) | ||||||
Municipal Bonds - continued | ||||||||
Wisconsin - continued | ||||||||
Wisconsin Public Finance Authority Senior Living Refunding Bonds Rev. (Mary’s Woods at Marylhurst Project), ”A“, 5.25%, 5/15/2047 | $ | 2,320,000 | $ | 2,507,410 | ||||
Wisconsin Public Finance Authority Senior Living Refunding Bonds Rev. (Mary’s Woods at Marylhurst Project), ”A“, 5.25%, 5/15/2052 | 200,000 | 215,446 | ||||||
Wisconsin Public Finance Authority Senior Living Refunding Bonds Rev. (Mary’s Woods at Marylhurst Project), ”B-2“, 3.5%, 11/15/2023 | 1,305,000 | 1,314,513 | ||||||
Wisconsin Public Finance Authority Senior Living Refunding Bonds Rev. (Mary’s Woods at Marylhurst Project), ”B-3“, 3%, 11/15/2022 | 1,795,000 | 1,798,464 | ||||||
Wisconsin Public Finance Authority Senior Living Rev. (Rose Villa Project), ”A“, 5.125%, 11/15/2029 | 490,000 | 518,827 | ||||||
Wisconsin Public Finance Authority Senior Living Rev. (Rose Villa Project), ”A“, 5.5%, 11/15/2034 | 455,000 | 485,321 | ||||||
Wisconsin Public Finance Authority Senior Living Rev. (Rose Villa Project), ”A“, 5.75%, 11/15/2044 | 375,000 | 403,545 | ||||||
Wisconsin Public Finance Authority Senior Living Rev. (Rose Villa Project), ”A“, 6%, 11/15/2049 | 740,000 | 804,632 | ||||||
Wisconsin Public Finance Authority Solid Waste Disposal Refunding Rev. (Waste Management, Inc. Project), ”A-1“, 1.6%, 6/01/2023 (Put Date 5/01/2018) | 1,210,000 | 1,209,564 | ||||||
Wisconsin Public Finance Authority Solid Waste Disposal Rev. (Waste Management, Inc. Project), ”A-3“, 1.6%, 9/01/2027 (Put Date 5/01/2018) | 6,785,000 | 6,780,726 | ||||||
Wisconsin Public Finance Authority, Airport Facilities Rev. (Transportation Infrastructure Properties LLC), ”B“, 5%, 7/01/2022 | 1,090,000 | 1,151,563 | ||||||
Wisconsin Public Finance Authority, Airport Facilities Rev. (Transportation Infrastructure Properties LLC), ”B“, 5.25%, 7/01/2028 | 1,260,000 | 1,366,898 | ||||||
Wisconsin Public Finance Authority, Airport Facilities Rev. (Transportation Infrastructure Properties LLC), ”B“, 5%, 7/01/2042 | 1,600,000 | 1,695,760 | ||||||
Wisconsin Public Finance Authority, Airport Facilities Rev. (Transportation Infrastructure Properties LLC), ”C“, 5%, 7/01/2042 | 1,630,000 | 1,724,915 | ||||||
|
| |||||||
$ | 54,057,640 | |||||||
Total Municipal Bonds (Identified Cost, $3,143,094,128) | $ | 3,232,574,231 |
78
Table of Contents
Portfolio of Investments – continued
Investment Companies (h) - 1.4% | ||||||||
Issuer | Shares/Par | Value ($) | ||||||
Money Market Funds - 1.4% | ||||||||
MFS Institutional Money Market Portfolio, 1.71% (v) (Identified Cost, $43,759,248) | 43,763,624 | $ | 43,759,248 | |||||
Other Assets, Less Liabilities - (0.5)% | (15,189,876 | ) | ||||||
Net Assets - 100.0% | $ | 3,261,143,603 |
(a) | Non-income producing security. |
(d) | In default. |
(h) | 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. At period end, the aggregate values of the fund’s investments in affiliated issuers and in unaffiliated issuers were $43,759,248 and $3,232,574,231, respectively. |
(n) | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate value of these securities was $4,924,850, representing 0.2% of net assets. |
(p) | Primary market inverse floater. |
(u) | Underlying security deposited into special purpose trust upon creation of self-deposited inverse floaters. |
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
The following abbreviations are used in this report and are defined:
AGM | Assured Guaranty Municipal |
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 |
COP | Certificate of Participation |
ETM | Escrowed to Maturity |
FGIC | Financial Guaranty Insurance Co. |
FHA | Federal Housing Administration |
FHLMC | Federal Home Loan Mortgage Corp. |
FLR | Floating Rate. Interest rate resets periodically based on the parenthetically disclosed reference rate plus a spread (if any). The period-end rate reported may not be the current rate. |
GNMA | Government National Mortgage Assn. |
LOC | Letter of Credit |
NATL | National Public Finance Guarantee Corp. |
PSF | Permanent School Fund |
RIBS | Residual Interest Bonds |
SYNCORA | Syncora Guarantee Inc. |
See Notes to Financial Statements
79
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Financial Statements
STATEMENT OF ASSETS AND LIABILITIES
At 3/31/18
This statement represents your fund’s balance sheet, which details the assets and liabilities comprising the total value of the fund.
Assets | ||||
Investments in unaffiliated issuers, at value (identified cost, $3,143,094,128) | $3,232,574,231 | |||
Investments in affiliated issuers, at value (identified cost, $43,759,248) | 43,759,248 | |||
Receivables for | ||||
Investments sold | 12,614,634 | |||
Fund shares sold | 2,836,122 | |||
Interest | 41,109,263 | |||
Other assets | 10,498 | |||
Total assets | $3,332,903,996 | |||
Liabilities | ||||
Payable to custodian | $299,581 | |||
Payables for | ||||
Distributions | 1,286,283 | |||
Investments purchased | 48,057,696 | |||
Fund shares reacquired | 3,617,136 | |||
Interest expense and fees | 113,900 | |||
Payable to the holders of the floating rate certificates from trust assets | 16,998,596 | |||
Payable to affiliates | ||||
Investment adviser | 83,065 | |||
Shareholder servicing costs | 983,279 | |||
Distribution and service fees | 56,417 | |||
Payable for independent Trustees’ compensation | 9,454 | |||
Accrued expenses and other liabilities | 254,986 | |||
Total liabilities | $71,760,393 | |||
Net assets | $3,261,143,603 | |||
Net assets consist of | ||||
Paid-in capital | $3,182,322,958 | |||
Unrealized appreciation (depreciation) | 89,480,103 | |||
Accumulated net realized gain (loss) | (10,648,624 | ) | ||
Accumulated distributions in excess of net investment income | (10,834 | ) | ||
Net assets | $3,261,143,603 | |||
Shares of beneficial interest outstanding | 377,792,096 |
Net assets | Shares outstanding | Net asset value per share (a) | ||||||||||
Class A | $1,418,893,342 | 164,342,993 | $8.63 | |||||||||
Class B | 18,134,838 | 2,097,524 | 8.65 | |||||||||
Class C | 181,792,743 | 20,984,699 | 8.66 | |||||||||
Class I | 672,870,192 | 78,006,487 | 8.63 | |||||||||
Class R6 | 492,474,140 | 57,141,428 | 8.62 | |||||||||
Class A1 | 476,864,405 | 55,205,788 | 8.64 | |||||||||
Class B1 | 113,943 | 13,177 | 8.65 |
(a) | Maximum offering price per share was equal to the net asset value per share for all share classes, except for Classes A and A1, for which the maximum offering prices per share were $9.01 [100 / 95.75 x $8.63] and $9.02 [100 / 95.75 x $8.64], 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 rdemptions of Class A, Class B, Class C, Class A1 and Class B1 shares. Redemption price per share was equal to the net asset value per share for Classes I and R6. Net asset value per share is calculated using actual net assets and shares outstanding rather than amounts that have been rounded for presentation purposes. |
See Notes to Financial Statements
80
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Financial Statements
Year ended 3/31/18
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 (loss) | ||||
Income | ||||
Interest | $131,840,162 | |||
Dividends from affiliated issuers | 715,609 | |||
Total investment income | $132,555,771 | |||
Expenses | ||||
Management fee | $11,771,223 | |||
Distribution and service fees | 5,403,812 | |||
Shareholder servicing costs | 2,741,845 | |||
Administrative services fee | 497,736 | |||
Independent Trustees’ compensation | 47,953 | |||
Custodian fee | 243,669 | |||
Shareholder communications | 118,082 | |||
Audit and tax fees | 60,683 | |||
Legal fees | 44,419 | |||
Interest expense and fees | 280,505 | |||
Miscellaneous | 335,910 | |||
Total expenses | $21,545,837 | |||
Fees paid indirectly | (2,283 | ) | ||
Reduction of expenses by investment adviser and distributor | (992,243 | ) | ||
Net expenses | $20,551,311 | |||
Net investment income (loss) | $112,004,460 | |||
Realized and unrealized gain (loss) | ||||
Realized gain (loss) (identified cost basis) | ||||
Unaffiliated issuers | $2,613,046 | |||
Affiliated issuers | (10,977 | ) | ||
Net realized gain (loss) | $2,602,069 | |||
Change in unrealized appreciation (depreciation) | ||||
Unaffiliated issuers | $(13,928,172 | ) | ||
Affiliated issuers | 3,049 | |||
Net unrealized gain (loss) | $(13,925,123 | ) | ||
Net realized and unrealized gain (loss) | $(11,323,054 | ) | ||
Change in net assets from operations | $100,681,406 |
See Notes to Financial Statements
81
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Financial Statements
STATEMENTS OF CHANGES IN NET ASSETS
These statements describe the increases and/or decreases in net assets resulting from operations, any distributions, and any shareholder transactions.
Year ended | ||||||||
3/31/18 | 3/31/17 | |||||||
Change in net assets | ||||||||
From operations | ||||||||
Net investment income (loss) | $112,004,460 | $90,497,289 | ||||||
Net realized gain (loss) | 2,602,069 | (10,919,427 | ) | |||||
Net unrealized gain (loss) | (13,925,123 | ) | (59,714,438 | ) | ||||
Change in net assets from operations | $100,681,406 | $19,863,424 | ||||||
Distributions declared to shareholders | ||||||||
From net investment income | $(109,502,996 | ) | $(84,759,109 | ) | ||||
Change in net assets from fund share transactions | $348,080,724 | $881,091,948 | ||||||
Total change in net assets | $339,259,134 | $816,196,263 | ||||||
Net assets | ||||||||
At beginning of period | 2,921,884,469 | 2,105,688,206 | ||||||
At end of period (including accumulated distributions in excess of net investment income of $10,834 and undistributed net investment income of $853,873) | $3,261,143,603 | $2,921,884,469 |
See Notes to Financial Statements
82
Table of Contents
Financial Statements
The financial highlights table is intended to help you understand the fund’s financial performance for the past 5 years (or life of a particular share class, if shorter). Certain information reflects financial results for a single fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
Class A | Year ended | |||||||||||||||||||
3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | ||||||||||||||||
Net asset value, beginning of period | $8.64 | $8.89 | $8.85 | $8.48 | $8.94 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.31 | $0.32 | (c) | $0.34 | $0.32 | $0.33 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.02 | ) | (0.27 | ) | 0.01 | 0.35 | (0.47 | ) | ||||||||||||
Total from investment operations | $0.29 | $0.05 | $0.35 | $0.67 | $(0.14 | ) | ||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.30 | ) | $(0.30 | ) | $(0.31 | ) | $(0.30 | ) | $(0.32 | ) | ||||||||||
Net asset value, end of period (x) | $8.63 | $8.64 | $8.89 | $8.85 | $8.48 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 3.35 | 0.59 | (c) | 4.10 | 8.02 | (1.52 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 0.77 | 0.78 | (c) | 0.79 | 0.80 | 0.80 | ||||||||||||||
Expenses after expense reductions (f) | 0.73 | 0.73 | (c) | 0.74 | 0.74 | 0.75 | ||||||||||||||
Net investment income (loss) | 3.49 | 3.67 | (c) | 3.88 | 3.71 | 3.92 | ||||||||||||||
Portfolio turnover | 21 | 20 | 22 | 17 | 32 | |||||||||||||||
Net assets at end of period (000 omitted) | $1,418,893 | $1,234,571 | $870,656 | $781,630 | $736,374 | |||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||
Ratios of expenses to average net assets | 0.72 | 0.72 | (c) | 0.73 | 0.73 | 0.73 |
See Notes to Financial Statements
83
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Financial Highlights – continued
Class B | Year ended | |||||||||||||||||||
3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | ||||||||||||||||
Net asset value, beginning of period | $8.66 | $8.90 | $8.86 | $8.49 | $8.95 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.24 | $0.26 | (c) | $0.27 | $0.26 | $0.27 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.02 | ) | (0.26 | ) | 0.02 | 0.35 | (0.48 | ) | ||||||||||||
Total from investment operations | $0.22 | $0.00 | (w) | $0.29 | $0.61 | $(0.21 | ) | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.23 | ) | $(0.24 | ) | $(0.25 | ) | $(0.24 | ) | $(0.25 | ) | ||||||||||
Net asset value, end of period (x) | $8.65 | $8.66 | $8.90 | $8.86 | $8.49 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 2.58 | (0.04 | )(c) | 3.32 | 7.21 | (2.26 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.52 | 1.53 | (c) | 1.54 | 1.55 | 1.55 | ||||||||||||||
Expenses after expense reductions (f) | 1.48 | 1.49 | (c) | 1.49 | 1.49 | 1.51 | ||||||||||||||
Net investment income (loss) | 2.75 | 2.94 | (c) | 3.12 | 2.95 | 3.16 | ||||||||||||||
Portfolio turnover | 21 | 20 | 22 | 17 | 32 | |||||||||||||||
Net assets at end of period (000 omitted) | $18,135 | $23,866 | $27,926 | $28,032 | $28,220 | |||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||
Ratios of expenses to average net assets | 1.48 | 1.47 | (c) | 1.48 | 1.48 | 1.49 |
See Notes to Financial Statements
84
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Financial Highlights – continued
Class C | Year ended | |||||||||||||||||||
3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | ||||||||||||||||
Net asset value, beginning of period | $8.67 | $8.92 | $8.88 | $8.51 | $8.97 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.24 | $0.26 | (c) | $0.27 | $0.26 | $0.27 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.02 | ) | (0.27 | ) | 0.02 | 0.35 | (0.48 | ) | ||||||||||||
Total from investment operations | $0.22 | $(0.01 | ) | $0.29 | $0.61 | $(0.21 | ) | |||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.23 | ) | $(0.24 | ) | $(0.25 | ) | $(0.24 | ) | $(0.25 | ) | ||||||||||
Net asset value, end of period (x) | $8.66 | $8.67 | $8.92 | $8.88 | $8.51 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 2.58 | (0.16 | )(c) | 3.31 | 7.19 | (2.26 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.52 | 1.53 | (c) | 1.54 | 1.55 | 1.55 | ||||||||||||||
Expenses after expense reductions (f) | 1.49 | 1.49 | (c) | 1.49 | 1.49 | 1.51 | ||||||||||||||
Net investment income (loss) | 2.74 | 2.92 | (c) | 3.11 | 2.94 | 3.15 | ||||||||||||||
Portfolio turnover | 21 | 20 | 22 | 17 | 32 | |||||||||||||||
Net assets at end of period (000 omitted) | $181,793 | $184,018 | $180,722 | $166,885 | $162,443 | |||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||
Ratios of expenses to average net assets | 1.48 | 1.47 | (c) | 1.48 | 1.48 | 1.49 |
See Notes to Financial Statements
85
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Financial Highlights – continued
Class I | Year ended | |||||||||||||||||||
3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | ||||||||||||||||
Net asset value, beginning of period | $8.63 | $8.88 | $8.84 | $8.47 | $8.93 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.33 | $0.34 | (c) | $0.36 | $0.35 | $0.35 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.01 | ) | (0.26 | ) | 0.02 | 0.34 | (0.47 | ) | ||||||||||||
Total from investment operations | $0.32 | $0.08 | $0.38 | $0.69 | $(0.12 | ) | ||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.32 | ) | $(0.33 | ) | $(0.34 | ) | $(0.32 | ) | $(0.34 | ) | ||||||||||
Net asset value, end of period (x) | $8.63 | $8.63 | $8.88 | $8.84 | $8.47 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 3.73 | 0.84 | (c) | 4.36 | 8.30 | (1.29 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 0.52 | 0.54 | (c) | 0.55 | 0.55 | 0.55 | ||||||||||||||
Expenses after expense reductions (f) | 0.49 | 0.49 | (c) | 0.49 | 0.49 | 0.50 | ||||||||||||||
Net investment income (loss) | 3.74 | 3.92 | (c) | 4.12 | 3.95 | 4.13 | ||||||||||||||
Portfolio turnover | 21 | 20 | 22 | 17 | 32 | |||||||||||||||
Net assets at end of period (000 omitted) | $672,870 | $974,392 | $474,159 | $682,371 | $546,220 | |||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||
Ratios of expenses to average net assets | 0.48 | 0.47 | (c) | 0.48 | 0.48 | 0.48 |
See Notes to Financial Statements
86
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Financial Highlights – continued
Class R6 | Year ended | |||
3/31/18 (i) | ||||
Net asset value, beginning of period | $8.77 | |||
Income (loss) from investment operations | ||||
Net investment income (loss) (d) | $0.22 | |||
Net realized and unrealized gain (loss) | (0.15 | ) | ||
Total from investment operations | $0.07 | |||
Less distributions declared to shareholders | ||||
From net investment income | $(0.22 | ) | ||
Net asset value, end of period (x) | $8.62 | |||
Total return (%) (r)(s)(t)(x) | 0.75 | (n) | ||
Ratios (%) (to average net assets) and Supplemental data: | ||||
Expenses before expense reductions (f) | 0.42 | (a) | ||
Expenses after expense reductions (f) | 0.41 | (a) | ||
Net investment income (loss) | �� | 3.77 | (a) | |
Portfolio turnover | 21 | |||
Net assets at end of period (000 omitted) | $492,474 | |||
Supplemental Ratios (%): | ||||
Ratios of expenses to average net assets after expense | 0.40 | (a) |
See Notes to Financial Statements
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Financial Highlights – continued
Class A1 | Year ended | |||||||||||||||||||
3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | ||||||||||||||||
Net asset value, beginning of period | $8.65 | $8.90 | $8.85 | $8.49 | $8.95 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.33 | $0.35 | (c) | $0.36 | $0.35 | $0.35 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.02 | ) | (0.27 | ) | 0.03 | 0.33 | (0.47 | ) | ||||||||||||
Total from investment operations | $0.31 | $0.08 | $0.39 | $0.68 | $(0.12 | ) | ||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.32 | ) | $(0.33 | ) | $(0.34 | ) | $(0.32 | ) | $(0.34 | ) | ||||||||||
Net asset value, end of period (x) | $8.64 | $8.65 | $8.90 | $8.85 | $8.49 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 3.61 | 0.85 | (c) | 4.48 | 8.16 | (1.27 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 0.52 | 0.54 | (c) | 0.54 | 0.55 | 0.55 | ||||||||||||||
Expenses after expense reductions (f) | 0.49 | 0.49 | (c) | 0.49 | 0.50 | 0.51 | ||||||||||||||
Net investment income (loss) | 3.75 | 3.94 | (c) | 4.13 | 3.96 | 4.17 | ||||||||||||||
Portfolio turnover | 21 | 20 | 22 | 17 | 32 | |||||||||||||||
Net assets at end of period (000 omitted) | $476,864 | $504,886 | $551,970 | $577,992 | $584,287 | |||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||
Ratios of expenses to average net assets | 0.48 | 0.48 | (c) | 0.48 | 0.48 | 0.49 |
See Notes to Financial Statements
88
Table of Contents
Financial Highlights – continued
Class B1 | Year ended | |||||||||||||||||||
3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | 3/31/14 | ||||||||||||||||
Net asset value, beginning of period | $8.66 | $8.90 | $8.86 | $8.49 | $8.95 | |||||||||||||||
Income (loss) from investment operations | ||||||||||||||||||||
Net investment income (loss) (d) | $0.26 | $0.28 | (c) | $0.29 | $0.28 | $0.29 | ||||||||||||||
Net realized and unrealized gain (loss) | (0.02 | ) | (0.26 | ) | 0.02 | 0.35 | (0.48 | ) | ||||||||||||
Total from investment operations | $0.24 | $0.02 | $0.31 | $0.63 | $(0.19 | ) | ||||||||||||||
Less distributions declared to shareholders | ||||||||||||||||||||
From net investment income | $(0.25 | ) | $(0.26 | ) | $(0.27 | ) | $(0.26 | ) | $(0.27 | ) | ||||||||||
Net asset value, end of period (x) | $8.65 | $8.66 | $8.90 | $8.86 | $8.49 | |||||||||||||||
Total return (%) (r)(s)(t)(x) | 2.83 | 0.19 | (c) | 3.55 | 7.46 | (2.02 | ) | |||||||||||||
Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
Expenses before expense reductions (f) | 1.52 | 1.53 | (c) | 1.54 | 1.55 | 1.55 | ||||||||||||||
Expenses after expense reductions (f) | 1.24 | 1.26 | (c) | 1.27 | 1.26 | 1.27 | ||||||||||||||
Net investment income (loss) | 2.99 | 3.17 | (c) | 3.34 | 3.19 | 3.39 | ||||||||||||||
Portfolio turnover | 21 | 20 | 22 | 17 | 32 | |||||||||||||||
Net assets at end of period (000 omitted) | $114 | $152 | $257 | $370 | $980 | |||||||||||||||
Supplemental Ratios (%): | ||||||||||||||||||||
Ratios of expenses to average net assets | 1.23 | 1.25 | (c) | 1.25 | 1.25 | 1.25 |
(a) | Annualized. |
(c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(i) | For the period from the class inception, August 1, 2017, 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. |
(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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(1) Business and Organization
MFS Municipal Income Fund (the fund) is a diversified series of MFS Muncipal 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 which generally trade in the over-the-counter market. The value of municipal instruments can be affected by changes in their actual or perceived credit quality. The credit quality of, and the ability to pay principal and interest when due by, an issuer of a municipal instrument depends on the credit quality of the entity supporting the municipal instrument, how essential any services supported by the municipal instrument are, the sufficiency of any revenues or taxes that support the municipal instrument, and/or the willingness or ability of the appropriate government entity to approve any appropriations necessary to support the municipal instrument. Many municipal instruments are supported by insurance which typically guarantees the timely payment of all principal and interest due on the underlying municipal instrument. The value of a municipal instrument can be volatile and significantly affected by adverse tax changes or court rulings, legislative or political changes, changes in specific or general market and economic conditions in the region where the instrument is issued, and the financial condition of municipal issuers and of municipal instrument insurers of which there are a limited number. Also, because many municipal instruments are issued to finance similar projects, conditions in certain industries can significantly affect the fund and the overall municipal market. If the Internal Revenue Service determines an issuer of a municipal instrument has not complied with the applicable tax requirements, interest from the security could become taxable, the security could decline in value, and distributions made by the fund could be taxable to shareholders.
In March 2017, the FASB issued Accounting Standards Update 2017-08, Receivables –Nonrefundable Fees and Other Costs (Subtopic 310-20) – Premium Amortization on Purchased Callable Debt Securities (“ASU 2017-08”). For entities that hold callable debt securities at a premium, ASU 2017-08 requires that the premium be amortized to the earliest call date. ASU 2017-08 will be effective for fiscal years beginning after
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December 15, 2018, and interim periods within those fiscal years. Management has evaluated the potential impacts of ASU 2017-08 and believes that adoption of ASU 2017-08 will not have a material effect on the fund’s overall financial position or its overall results of operations.
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, or similar 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.
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. 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
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net asset value can differ depending on the source and method used to determine value. When fair valuation is used, the value of an investment used to determine the fund’s net asset value may differ from quoted or published prices for the same investment. There can be no assurance that the fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the fund determines its net asset value per share.
Various inputs are used in determining the value of the fund’s assets or liabilities. These inputs are categorized into three broad levels. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fund’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes unobservable inputs, which may include the adviser’s own assumptions in determining the fair value of investments. The following is a summary of the levels used as of March 31, 2018 in valuing the fund’s assets or liabilities:
Financial Instruments | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Municipal Bonds | $— | $3,232,574,231 | $— | $3,232,574,231 | ||||||||||||
Mutual Funds | 43,759,248 | — | — | 43,759,248 | ||||||||||||
Total | $43,759,248 | $3,232,574,231 | $— | $3,276,333,479 |
For further information regarding security characteristics, see the Portfolio of Investments.
Inverse Floaters – The fund invests in municipal inverse floating rate securities which are structured by the issuer (known as primary market inverse floating rate securities) or by the fund utilizing the fund’s municipal bonds which have already been issued (known as self-deposited 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 self-deposited secondary market inverse floating rate security is created when the fund transfers a fixed rate municipal bond to a special purpose trust (“the 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 trust or another party for redemption at par plus accrued interest), and (b) issue inverse floating rate certificates (sometimes referred to as “inverse floaters”) which are held by the fund. 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
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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 March 31, 2018, the fund’s payable to the holders of the floating rate certificates from trust assets was $16,998,596 and the weighted average interest rate on the floating rate certificates issued by the trust was 1.74% For the year ended March 31, 2018, the average payable to the holders of the floating rate certificates from trust assets was $15,481,981 at a weighted average interest rate of 1.20%. Interest expense and fees relate to interest payments made to the holders of certain floating rate certificates and associated fees, both of which are made from trust assets. Interest expense and fees are recorded as incurred. For the year ended March 31, 2018, interest expense and fees related to self-deposited inverse floaters amounted to $279,127 and are included in “Interest expense and fees” in the Statement of Operations. Primary market inverse floaters held by the fund are not accounted for as secured borrowings.
Indemnifications – Under the fund’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the fund. Additionally, in the normal course of business, the fund enters into agreements with service providers that may contain indemnification clauses. The fund’s maximum exposure under these agreements is unknown as this would involve future claims that may be made against the fund that have not yet occurred.
Investment Transactions and Income – Investment transactions are recorded on the trade date. Interest income is recorded on the accrual basis. All premium and discount is amortized or accreted for financial statement purposes in accordance with U.S. generally accepted accounting principles. Interest payments received in additional securities are recorded on the ex-interest date in an amount equal to the value of the security on such date. Debt obligations may be placed on non-accrual status or set to accrue at a rate of interest less than the contractual coupon when the collection of all or a portion of interest has become doubtful. Interest income for those debt obligations may be further reduced by the write-off of the related interest receivables when deemed uncollectible.
The fund may receive proceeds from litigation settlements. Any proceeds received from litigation involving portfolio holdings are reflected in the Statement of Operations in realized gain/loss if the security has been disposed of by the fund or in unrealized gain/loss if the security is still held by the fund. Any other proceeds from litigation not related to portfolio holdings are reflected as other income in the Statement of Operations.
Legal fees and other related expenses incurred to preserve and protect the value of a security owned are added to the cost of the security; other legal fees are expensed. Capital infusions made directly to the security issuer, which are generally non-recurring, incurred to protect or enhance the value of high-yield debt securities, are reported as additions to the cost basis of the security. Costs that are incurred to negotiate the terms or conditions of capital infusions or that are expected to result in a plan of reorganization are reported as realized losses. Ongoing costs incurred to protect or enhance an investment, or costs incurred to pursue other claims or legal actions, are expensed.
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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 year ended March 31, 2018, is shown as a reduction of total expenses in the Statement of Operations.
Tax Matters and Distributions – The fund intends to qualify as a regulated investment company, as defined under Subchapter M of the Internal Revenue Code, and to distribute all of its taxable and tax-exempt income, including realized capital gains. As a result, no provision for federal income tax is required. The fund’s federal tax returns, when filed, will remain subject to examination by the Internal Revenue Service for a three year period. Management has analyzed the fund’s tax positions taken on federal and state tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
Distributions to shareholders are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. Certain capital accounts in the financial statements are periodically adjusted for permanent differences in order to reflect their tax character. These adjustments have no impact on net assets or net asset value per share. Temporary differences which arise from recognizing certain items of income, expense, gain or loss in different periods for financial statement and tax purposes will reverse at some time in the future. Distributions in excess of net investment income or net realized gains are temporary overdistributions for financial statement purposes resulting from differences in the recognition or classification of income or distributions for financial statement and tax purposes.
Book/tax differences primarily relate to amortization and accretion of debt securities.
The tax character of distributions declared to shareholders for the last two fiscal years is as follows:
Year ended 3/31/18 | Year ended 3/31/17 | |||||||
Ordinary income (including any short-term capital gains) | $1,550,000 | $1,042,126 | ||||||
Tax-exempt income | 107,952,996 | 83,716,983 | ||||||
Total distributions | $109,502,996 | $84,759,109 |
The federal tax cost and the tax basis components of distributable earnings were as
follows:
As of 3/31/18 | ||||
Cost of investments | $3,149,151,216 | |||
Gross appreciation | 123,806,045 | |||
Gross depreciation | (13,622,378 | ) | ||
Net unrealized appreciation (depreciation) | $110,183,667 | |||
Undistributed tax-exempt income | 9,556,471 | |||
Capital loss carryforwards | (31,352,188 | ) | ||
Other temporary differences | (9,567,305 | ) |
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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, 2018, the fund had capital loss carryforwards available to offset future realized gains as follows:
Pre-enactment losses which expire as follows: | ||||
3/31/19 | $(7,352,883 | ) | ||
Post-enactment losses which are characterized as follows: | ||||
Short-Term | $(23,999,305 | ) |
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. Effective April 23, 2018, Class C shares will convert to Class A shares approximately ten years after purchase. The fund’s distributions declared to shareholders as reported in the Statements of Changes in Net Assets are presented by class as follows:
From net investment income | ||||||||
Year ended 3/31/18 (i) | Year ended 3/31/17 | |||||||
Class A | $45,341,921 | $36,339,556 | ||||||
Class B | 577,594 | 709,068 | ||||||
Class C | 4,953,451 | 5,077,315 | ||||||
Class I | 37,756,178 | 22,832,832 | ||||||
Class R6 | 2,715,204 | — | ||||||
Class A1 | 18,154,709 | 19,793,928 | ||||||
Class B1 | 3,939 | 6,410 | ||||||
Total | $109,502,996 | $84,759,109 |
(i) | For Class R6, the period is from the class inception, August 1, 2017, through the stated period end. |
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(3) Transactions with Affiliates
Investment Adviser – The fund has an investment advisory agreement with MFS to provide overall investment management and related administrative services and facilities to the fund. The management fee is computed daily and paid monthly at the following annual rates based on the fund’s average daily net assets:
Up to $1.3 billion | 0.40 | % | ||
In excess of $1.3 billion and up to $2 billion | 0.37 | % | ||
In excess of $2 billion | 0.35 | % |
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 fund’s Board of Trustees. For the year ended March 31, 2018, this management fee reduction amounted to $261,330, which is included in the reduction of total expenses in the Statement of Operations. The management fee incurred for the year ended March 31, 2018 was equivalent to an annual effective rate of 0.37% of the fund’s average daily net assets.
The investment adviser had 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 did not exceed 0.10% annually of the fund’s average daily net assets. This written agreement was eliminated on July 27, 2017. For the period April 1, 2017 through July 27, 2017, this reduction amounted to $265,422, which is included in the reduction of total expenses in the Statement of Operations. Effective July 28, 2017, 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 (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 each class’s average daily net assets:
Class A | Class B | Class C | Class I | Class R6 | Class A1 | Class B1 | ||||||||||||||||||
0.73% | 1.48% | 1.48% | 0.48% | 0.42% | 0.48% | 1.23% |
This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until July 31, 2018. For the period July 28, 2017 through March 31, 2018, this reduction amounted to $437,506, 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 $125,861 and $2,937 for the year ended March 31, 2018, 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
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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% | $3,323,452 | |||||||||||||||
Class B | 0.75% | 0.25% | 1.00% | 1.00% | 216,216 | |||||||||||||||
Class C | 0.75% | 0.25% | 1.00% | 1.00% | 1,862,791 | |||||||||||||||
Class B1 | 0.75% | 0.25% | 1.00% | 0.76% | 1,353 | |||||||||||||||
Total Distribution and Service Fees | $5,403,812 |
(d) | In accordance with the distribution plan for certain classes, the fund pays distribution and/or service fees equal to these annual percentage rates of each class’s average daily net assets. The distribution and service fee rates disclosed by class represent the current rates in effect at the end of the reporting period. Any rate changes, if applicable, are detailed below. |
(e) | The annual effective rates represent actual fees incurred under the distribution plan for the year ended March 31, 2018 based on each class’s average daily net assets. The annual effective rates represent actual fees incurred under the distribution plan for the year ended March 31, 2018 based on each class’s average daily net assets. Prior to July 28, 2017, the service fee rate attributable to Class B1 shares within the first year of purchase was 0.25% and the service fee rate attributable to all other Class B1 shares was reduced by MFD to 0.00% under a written agreement that terminated on July 27, 2017. For the period April 1, 2017 through July 27, 2017, this reduction amounted to $110 and is included in the reduction of total expenses in the Statement of Operations. Effective July 28, 2017, MFD has agreed in writing to reduce the Class B1 service fee rate to 0.00% for all Class B1 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, 2018. For the period July 28, 2017 through March 31, 2018, this reduction amounted to $217 and is included in the reduction of total expenses in the Statement of Operations. MFD has voluntarily agreed to rebate a portion of each class’s 0.25% service fee attributable to accounts for which MFD retains the 0.25% service fee except for accounts attributable to MFS or its affiliates’ seed money. For the year ended March 31, 2018, this rebate amounted to $27,575 and $83 for Class A and Class C, respectively, and is included in the reduction of total expenses in the Statement 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 and Class B1 shares are subject to a CDSC in the event of a shareholder redemption within six years of purchase. All contingent deferred sales charges are paid to MFD and during the year ended March 31, 2018, were as follows:
Amount | ||||
Class A | $70,964 | |||
Class B | 28,513 | |||
Class C | 33,987 | |||
Class A1 | — | |||
Class B1 | 176 |
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Shareholder Servicing Agent – MFS Service Center, Inc. (MFSC), a wholly-owned subsidiary of MFS, receives a fee from the fund for its services as shareholder servicing agent calculated as a percentage of the average daily net assets of the fund as determined periodically under the supervision of the fund’s Board of Trustees. For the year ended March 31, 2018, the fee was $222,306, which equated to 0.0071% 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. Class R6 shares do not incur sub-accounting fees. For the year ended March 31, 2018, these out-of-pocket expenses, sub-accounting and other shareholder servicing costs amounted to $2,519,539.
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 year ended March 31, 2018 was equivalent to an annual effective rate of 0.0159% 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 $5,177 and is included in “Independent Trustees’ compensation” in the Statement of Operations for the year ended March 31, 2018. The liability for deferred retirement benefits payable to certain independent Trustees under the DB plan amounted to $9,397 at March 31, 2018, 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 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 year ended March 31, 2018, the fee paid by the fund under this agreement was $5,476 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.
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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. This money market fund does not pay a management fee to MFS.
On July 31, 2017, MFS purchased 5,702 shares of Class R6 for an aggregate amount of $50,000 as an initial investment in the class.
The fund is permitted to engage in purchase and sale transactions with funds and accounts for which MFS serves as investment adviser or sub-adviser (“cross-trades”) pursuant to a policy adopted by the Board of Trustees. This policy has been designed to ensure that cross-trades conducted by the fund comply with Rule 17a-7 under the Investment Company Act of 1940. During the year ended March 31, 2018, the fund engaged in purchase transactions pursuant to this policy, which amounted to $331,702.
(4) Portfolio Securities
For the year ended March 31, 2018, purchases and sales of investments, other than short-term obligations, aggregated $1,026,846,608 and $644,825,787, respectively.
(5) Shares of Beneficial Interest
The fund’s Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest. Transactions in fund shares were as follows:
Year ended 3/31/18 (i) | Year ended 3/31/17 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Shares sold | ||||||||||||||||
Class A | 45,049,533 | $393,786,668 | 81,544,548 | $709,257,465 | ||||||||||||
Class B | 94,197 | 827,680 | 237,531 | 2,118,255 | ||||||||||||
Class C | 3,286,186 | 28,882,611 | 4,522,090 | 40,259,561 | ||||||||||||
Class I | 49,253,278 | 430,449,961 | 76,443,314 | 665,279,828 | ||||||||||||
Class R6 | 58,148,446 | 501,209,636 | — | — | ||||||||||||
Class A1 | 378,134 | 3,311,653 | 474,870 | 4,208,997 | ||||||||||||
Class B1 | 982 | 8,606 | 1,267 | 11,208 | ||||||||||||
156,210,756 | $1,358,476,815 | 163,223,620 | $1,421,135,314 | |||||||||||||
Shares issued to shareholders in reinvestment of distributions | ||||||||||||||||
Class A | 4,958,239 | $43,321,188 | 3,904,581 | $34,339,750 | ||||||||||||
Class B | 61,940 | 542,274 | 73,441 | 649,053 | ||||||||||||
Class C | 503,852 | 4,418,367 | 502,967 | 4,449,947 | ||||||||||||
Class I | 3,068,844 | 26,811,257 | 2,286,155 | 20,094,377 | ||||||||||||
Class R6 | 314,258 | 2,706,197 | — | — | ||||||||||||
Class A1 | 1,741,211 | 15,224,426 | 1,839,398 | 16,240,093 | ||||||||||||
Class B1 | 438 | 3,835 | 647 | 5,732 | ||||||||||||
10,648,782 | $93,027,544 | 8,607,189 | $75,778,952 |
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Notes to Financial Statements – continued
Year ended 3/31/18 (i) | Year ended 3/31/17 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Shares reacquired | ||||||||||||||||
Class A | (28,476,849 | ) | $(248,633,305 | ) | (40,563,104 | ) | $(353,279,694 | ) | ||||||||
Class B | (815,616 | ) | (7,143,542 | ) | (690,340 | ) | (6,101,090 | ) | ||||||||
Class C | (4,019,812 | ) | (35,264,495 | ) | (4,066,722 | ) | (35,752,061 | ) | ||||||||
Class I | (87,175,081 | ) | (754,696,815 | ) | (19,261,661 | ) | (167,894,647 | ) | ||||||||
Class R6 | (1,321,276 | ) | (11,373,210 | ) | — | — | ||||||||||
Class A1 | (5,288,704 | ) | (46,261,651 | ) | (5,987,062 | ) | (52,679,135 | ) | ||||||||
Class B1 | (5,769 | ) | (50,617 | ) | (13,227 | ) | (115,691 | ) | ||||||||
(127,103,107 | ) | $(1,103,423,635 | ) | (70,582,116 | ) | $(615,822,318 | ) | |||||||||
Net change | ||||||||||||||||
Class A | 21,530,923 | $188,474,551 | 44,886,025 | $390,317,521 | ||||||||||||
Class B | (659,479 | ) | (5,773,588 | ) | (379,368 | ) | (3,333,782 | ) | ||||||||
Class C | (229,774 | ) | (1,963,517 | ) | 958,335 | 8,957,447 | ||||||||||
Class I | (34,852,959 | ) | (297,435,597 | ) | 59,467,808 | 517,479,558 | ||||||||||
Class R6 | 57,141,428 | 492,542,623 | — | — | ||||||||||||
Class A1 | (3,169,359 | ) | (27,725,572 | ) | (3,672,794 | ) | (32,230,045 | ) | ||||||||
Class B1 | (4,349 | ) | (38,176 | ) | (11,313 | ) | (98,751 | ) | ||||||||
39,756,431 | $348,080,724 | 101,248,693 | $881,091,948 |
(i) | For Class R6, the period is from the class inception, August 1, 2017, through the stated period end. |
Class T shares were not publicly available for sale during the period. Please see the fund’s prospectus for details.
(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 year ended March 31, 2018, the fund’s commitment fee and interest expense were $20,948 and $0, respectively, and are included in “Miscellaneous” expense in the Statement of Operations.
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Notes to Financial Statements – continued
(7) Investments in Affiliated Issuers
An affiliated issuer may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. For the purposes of this report, the fund assumes the following to be affiliated issuers:
Affiliated Issuers | Beginning Shares/Par Amount | Acquisitions Shares/Par Amount | Dispositions Shares/Par Amount | Ending Shares/Par Amount | ||||||||||||||||
MFS Institutional Money Market Portfolio | 42,099,106 | 735,985,134 | (734,320,616 | ) | 43,763,624 | |||||||||||||||
Affiliated Issuers | Realized Gain (Loss) | Change in Unrealized Appreciation (Depreciation) | Capital Gain Distributions | Dividend Income | Ending Value | |||||||||||||||
MFS Institutional Money Market Portfolio | $(10,977 | ) | $3,049 | $— | $715,609 | $43,759,248 |
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of MFS Municipal Series Trust and the Shareholders of MFS Municipal Income Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of MFS Municipal Income Fund (the “Fund”), including the portfolio of investments, as of March 31, 2018, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of March 31, 2018, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of March 31, 2018, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
May 16, 2018
We have served as the auditor of one or more of the MFS investment companies since 1924.
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TRUSTEES AND OFFICERS — IDENTIFICATION AND BACKGROUND
The Trustees and Officers of the Trust, as of May 1, 2018, are listed below, together with their principal occupations during the past five years. (Their titles may have varied during that period.) The address of each Trustee and Officer is 111 Huntington Avenue, Boston, Massachusetts 02199-7618.
Name, Age | Position(s) Held | Trustee/Officer Since (h) | Number of MFS Funds overseen by the Trustee | Principal the Past Five Years | Other Directorships | |||||
INTERESTED TRUSTEES | ||||||||||
Robert J. Manning (k) (age 54) | Trustee | February 2004 | 135 | Massachusetts Financial Services Company, Executive Chairman (since January 2017); Director; Chairman of the Board; Chief Executive Officer (until 2015); Co-Chief Executive Officer (2015-2016) | N/A | |||||
Robin A. Stelmach (k) (age 56) | Trustee | January 2014 | 135 | Massachusetts Financial Services Company, Vice Chair (since January 2017); Chief Operating Officer and Executive Vice President (until January 2017) | N/A | |||||
INDEPENDENT TRUSTEES | ||||||||||
John P. Kavanaugh (age 63) | Trustee and Chair of Trustees | January 2009 | 135 | Private investor | N/A |
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Trustees and Officers – continued
Name, Age | Position(s) Held | Trustee/Officer Since (h) | Number of MFS Funds overseen by the Trustee | Principal the Past Five Years | Other Directorships | |||||
Steven E. Buller (age 66) | Trustee | February 2014 | 135 | Financial Accounting Standards Advisory Council, Chairman (2014-2015); Public Company Accounting Oversight Board, Standing Advisory Group, Member (until 2014); BlackRock, Inc. (investment management), Managing Director (until 2014), BlackRock Finco UK (investment management), Director (until 2014) | N/A | |||||
John A. Caroselli (age 63) | Trustee | March 2017 | 135 | JC Global Advisors, LLC (management consulting), President (since 2015); First Capital Corporation (commercial finance), Executive Vice President (until 2015) | N/A | |||||
Maureen R. Goldfarb (age 63) | Trustee | January 2009 | 135 | Private investor | N/A | |||||
Michael Hegarty (age 73) | Trustee | December 2004 | 135 | Private investor | Rouse Properties Inc., Director (until 2016); Capmark Financial Group Inc., Director (until 2015) | |||||
Clarence Otis, Jr. (age 62) | Trustee | March 2017 | 135 | Darden Restaurants, Inc., Chief Executive Officer (until 2014) | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director; Federal Reserve Bank of Atlanta, Director (until 2015) |
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Trustees and Officers – continued
Name, Age | Position(s) Held | Trustee/Officer Since (h) | Number of MFS Funds overseen by the Trustee | Principal the Past Five Years | Other Directorships | |||||
Maryanne L. Roepke (age 62) | Trustee | May 2014 | 135 | American Century Investments (investment management), Senior Vice President and Chief Compliance Officer (until 2014) | N/A | |||||
Laurie J. Thomsen (age 60) | Trustee | March 2005 | 135 | Private investor | The Travelers Companies, Director; Dycom Industries, Inc., Director (since 2015) |
Name, Age | Position(s) Held with Fund | Trustee/Officer Since (h) | Number of MFS | Principal the Past Five Years | ||||
OFFICERS | ||||||||
Christopher R. Bohane (k) (age 44) | Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Kino Clark (k) (age 49) | Assistant Treasurer | January 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
John W. Clark, Jr. (k) (age 51) | Assistant Treasurer | April 2017 | 135 | Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head – Treasurer’s Office (until February 2017) | ||||
Thomas H. Connors (k) (age 58) | Assistant Secretary and Assistant Clerk | September 2012 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel |
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Trustees and Officers – continued
Name, Age | Position(s) Held with Fund | Trustee/Officer Since (h) | Number of MFS | Principal the Past Five Years | ||||
Ethan D. Corey (k) (age 54) | Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | ||||
David L. DiLorenzo (k) (age 49) | President | July 2005 | 135 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 50) | Secretary and Clerk | April 2017 | 135 | Massachusetts Financial Services Company, Executive Vice President and General Counsel (since March 2017); Harris Associates (investment management), General Counsel (from September 2015 to January 2017); Janus Capital Management LLC (investment management), Senior Vice President and General Counsel (until September 2015) | ||||
Brian E. Langenfeld (k) (age 45) | Assistant Secretary and Assistant Clerk | June 2006 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 47) | Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
Kasey L. Phillips (k) (age 47) | Assistant Treasurer | September 2012 | 135 | Massachusetts Financial Services Company, Vice President |
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Trustees and Officers – continued
Name, Age | Position(s) Held with Fund | Trustee/Officer Since (h) | Number of MFS | Principal the Past Five Years | ||||
Matthew A. Stowe (k) (age 43) | Assistant Secretary and Assistant Clerk | October 2014 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
Frank L. Tarantino (age 74) | Independent Senior Officer | June 2004 | 135 | Tarantino LLC (provider of compliance services), Principal | ||||
Richard S. Weitzel (k) (age 47) | Assistant Secretary and Assistant Clerk | October 2007 | 135 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | ||||
Martin J. Wolin (k) (age 50) | Chief Compliance Officer | July 2015 | 135 | Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer (since July 2015); Mercer (financial service provider), Chief Risk and Compliance Officer, North America and Latin America (until June 2015) | ||||
James O. Yost (k) (age 57) | Treasurer | September 1990 | 135 | Massachusetts Financial Services Company, Senior Vice President |
(h) | Date first appointed to serve as Trustee/officer of an MFS Fund. Each Trustee has served continuously since appointment unless indicated otherwise. For the period from December 15, 2004 until February 22, 2005, Mr. Manning served as Advisory Trustee. Prior to January 2012, Messrs. DiLorenzo and Yost served as Assistant Treasurers of the Funds. From January 2012 through December 2016, Messrs. DiLorenzo and Yost served as Treasurer and Deputy Treasurer of the Funds, respectively. |
(j) | Directorships or trusteeships of companies required to report to the Securities and Exchange Commission (i.e., “public companies”). |
(k) | “Interested person” of the Trust within the meaning of the Investment Company Act of 1940 (referred to as the 1940 Act), which is the principal federal law governing investment companies like the fund, as a result of a position with MFS. The address of MFS is 111 Huntington Avenue, Boston, Massachusetts 02199-7618. |
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Trustees and Officers – continued
Each Trustee has been elected by shareholders and each Trustee and officer holds office until his or her successor is chosen and qualified or until his or her earlier death, resignation, retirement or removal. The Trust does not hold annual meetings for the purpose of electing Trustees, and Trustees are not elected for fixed terms. Under the terms of the Board’s retirement policy, an Independent Trustee shall retire at the end of the calendar year in which he or she reaches the earlier of 75 years of age or 15 years of service on the Board (or, in the case of any Independent Trustee who joined the Board prior to 2015, 20 years of service on the Board).
Messrs. Buller and Otis and Ms. Roepke are members of the Trust’s Audit Committee.
Each of the Interested Trustees and certain Officers hold comparable officer positions with certain affiliates of MFS.
The Statement of Additional Information for a Fund includes further information about the Trustees and is available without charge upon request by calling 1-800-225-2606.
Investment Adviser | Custodian | |
Massachusetts Financial Services Company 111 Huntington Avenue Boston, MA 02199-7618 | JPMorgan Chase Bank, NA 4 Metrotech Center New York, NY 11245 | |
Distributor | Independent Registered Public Accounting Firm | |
MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618 | Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 | |
Portfolio Manager(s) | ||
Jason Kosty | ||
Geoffrey Schechter |
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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 mfs.com/proxyvoting, 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 by August 31 of each year without charge by visiting mfs.com/proxyvoting, 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 at https://www.mfs.com/en-us/what-we-do/announcements.html or at mfs.com/openendfunds by choosing the fund’s name.
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INFORMATION ABOUT FUND CONTRACTS AND LEGAL CLAIMS
The fund has entered into contractual arrangements with an investment adviser, administrator, distributor, shareholder servicing agent, 529 program manager (if applicable), and custodian who each provide services to the fund. Unless expressly stated otherwise, shareholders are not parties to, or intended beneficiaries of these contractual arrangements, and these contractual arrangements are not intended to create any shareholder right to enforce them against the service providers or to seek any remedy under them against the service providers, either directly or on behalf of the fund.
Under the Trust’s By-Laws and Declaration of Trust, any claims asserted against or on behalf of the MFS Funds, including claims against Trustees and Officers, must be brought in state and federal courts located within the Commonwealth of Massachusetts.
FEDERAL TAX INFORMATION (unaudited)
The fund will notify shareholders of amounts for use in preparing 2018 income tax forms in January 2019. The following information is provided pursuant to provisions of the Internal Revenue Code.
Of the dividends paid from net investment income during the fiscal year, 98.58% is designated as exempt interest dividends for federal income tax purposes. If the fund has earned income on private activity bonds, a portion of the dividends paid may be considered a tax preference item for purposes of computing a shareholder’s alternative minimum tax.
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rev. 3/16
| WHAT DOES MFS DO WITH YOUR PERSONAL INFORMATION? | ![]() |
Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
What? | The types of personal information we collect and share depend on the product or service you have with us. This information can include:
• Social Security number and account balances • Account transactions and transaction history • Checking account information and wire transfer instructions
When you are no longer our customer, we continue to share your information as described in this notice. |
How? | All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons MFS chooses to share; and whether you can limit this sharing. |
Reasons we can share your personal information | Does MFS share? | Can you limit this sharing? | ||
For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus | Yes | No | ||
For our marketing purposes – to offer our products and services to you | No | We don’t share | ||
For joint marketing with other financial companies | No | We don’t share | ||
For our affiliates’ everyday business purposes – information about your transactions and experiences | No | We don’t share | ||
For our affiliates’ everyday business purposes – information about your creditworthiness | No | We don’t share | ||
For nonaffiliates to market to you | No | We don’t share |
Questions? | Call 800-225-2606 or go to mfs.com. |
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Page 2 |
Who we are | ||
Who is providing this notice? | MFS Funds, MFS Investment Management, MFS Institutional Advisors, Inc., and MFS Heritage Trust Company. |
What we do | ||
How does MFS protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include procedural, electronic, and physical safeguards for the protection of the personal information we collect about you. | |
How does MFS collect my personal information? | We collect your personal information, for example, when you
• open an account or provide account information • direct us to buy securities or direct us to sell your securities • make a wire transfer
We also collect your personal information from others, such as credit bureaus, affiliates, or other companies. | |
Why can’t I limit all sharing? | Federal law gives you the right to limit only
• sharing for affiliates’ everyday business purposes – information about your creditworthiness • affiliates from using your information to market to you • sharing for nonaffiliates to market to you
State laws and individual companies may give you additional rights to limit sharing. |
Definitions | ||
Affiliates | Companies related by common ownership or control. They can be financial and nonfinancial companies.
• MFS does not share personal information with affiliates, except for everyday business purposes as described on page one of this notice. | |
Nonaffiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies.
• MFS does not share with nonaffiliates so they can market to you. | |
Joint marketing | A formal agreement between nonaffiliated financial companies that together market financial products or services to you.
• MFS doesn’t jointly market. |
Other important information | ||
If you own an MFS product or receive an MFS service in the name of a third party such as a bank or broker-dealer, their privacy policy may apply to you instead of ours. |
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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 DST Asset Manager Solutions, Inc.
30 Dan Road
Canton, MA 02021-2809
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ITEM 2. | CODE OF ETHICS. |
The Registrant has adopted a Code of Ethics (the “Code”) pursuant to Section 406 of the Sarbanes-Oxley Act and as defined in Form N-CSR that applies to the Registrant’s principal executive officer and principal financial and accounting officer. During the period covered by this report, the Registrant has not amended any provision in the Code that relates to an element of the Code’s definition enumerated in paragraph (b) of Item 2 of this Form N-CSR. During the period covered by this report, the Registrant did not grant a waiver, including an implicit waiver, from any provision of the Code.
A copy of the current Code of Ethics is filed as an exhibit to this Form N-CSR.
ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
Messrs. Steven E. Buller and Clarence Otis, Jr. and Ms. Maryanne L. Roepke, members of the Audit Committee, have been determined by the Board of Trustees in their reasonable business judgment to meet the definition of “audit committee financial expert” as such term is defined in Form N-CSR. In addition, Messrs. Buller and Otis and Ms. Roepke are “independent” members of the Audit Committee (as such term has been defined by the Securities and Exchange Commission in regulations implementing Section 407 of the Sarbanes-Oxley Act of 2002). The Securities and Exchange Commission has stated that the designation of a person as an audit committee financial expert pursuant to this Item 3 on the Form N-CSR does not impose on such a person any duties, obligations or liability that are greater than the duties, obligations or liability imposed on such person as a member of the Audit Committee and the Board of Trustees in the absence of such designation or identification.
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ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
Items 4(a) through 4(d) and 4(g):
The Board of Trustees has appointed Deloitte & Touche LLP (“Deloitte”) to serve as independent accountants to a series of the Registrant (each a “Fund” and collectively the “Funds”). The tables below set forth the audit fees billed to each Fund as well as fees for non-audit services provided to each Fund and/or to the Fund’s investment adviser, Massachusetts Financial Services Company (“MFS”), and to various entities either controlling, controlled by, or under common control with MFS that provide ongoing services to the Fund (“MFS Related Entities”).
For the fiscal years ended March 31, 2018 and 2017, audit fees billed to each Fund by Deloitte were as follows:
Audit Fees | ||||||||
2018 | 2017 | |||||||
Fees billed by Deloitte: | ||||||||
MFS Alabama Municipal Bond Fund | 46,924 | 45,442 | ||||||
MFS Arkansas Municipal Bond Fund | 46,924 | 45,442 | ||||||
MFS California Municipal Bond Fund | 46,924 | 45,442 | ||||||
MFS Georgia Municipal Bond Fund | 46,924 | 45,442 | ||||||
MFS Maryland Municipal Bond Fund | 46,924 | 45,442 | ||||||
MFS Massachusetts Municipal Bond Fund | 46,924 | 45,442 | ||||||
MFS Mississippi Municipal Bond Fund | 46,924 | 45,442 | ||||||
MFS Municipal Income Fund | 52,839 | 51,230 | ||||||
MFS New York Municipal Bond Fund | 46,924 | 45,442 | ||||||
MFS North Carolina Municipal Bond Fund | 46,924 | 45,442 | ||||||
MFS Pennsylvania Municipal Bond Fund | 46,924 | 45,442 | ||||||
MFS South Carolina Municipal Bond Fund | 46,924 | 45,442 | ||||||
MFS Tennessee Municipal Bond Fund | 46,924 | 45,442 | ||||||
MFS Virginia Municipal Bond Fund | 46,924 | 45,442 | ||||||
MFS West Virginia Municipal Bond Fund | 46,924 | 45,442 | ||||||
|
|
|
| |||||
Total | 709,775 | 687,418 |
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For the fiscal years ended March 31, 2018 and 2017, fees billed by Deloitte for audit-related, tax and other services provided to each Fund and for audit-related, tax and other services provided to MFS and MFS Related Entities were as follows:
Audit-Related Fees1 | Tax Fees2 | All Other Fees3 | ||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||
Fees billed by Deloitte: | ||||||||||||||||||||||||
To MFS Alabama Municipal Bond Fund | 0 | 0 | 5,995 | 5,866 | 0 | 0 | ||||||||||||||||||
To MFS Arkansas Municipal Bond Fund | 0 | 0 | 5,995 | 5,866 | 0 | 0 | ||||||||||||||||||
To MFS California Municipal Bond Fund | 0 | 0 | 5,995 | 5,866 | 0 | 0 | ||||||||||||||||||
To MFS Georgia Municipal Bond Fund | 0 | 0 | 5,995 | 5,866 | 0 | 0 | ||||||||||||||||||
To MFS Maryland Municipal Bond Fund | 0 | 0 | 5,995 | 5,866 | 0 | 0 | ||||||||||||||||||
To MFS Massachusetts Municipal Bond Fund | 0 | 0 | 5,995 | 5,866 | 0 | 0 | ||||||||||||||||||
To MFS Mississippi Municipal Bond Fund | 0 | 0 | 5,995 | 5,866 | 0 | 0 | ||||||||||||||||||
To MFS Municipal Income Fund | 0 | 0 | 6,058 | 5,928 | 0 | 0 | ||||||||||||||||||
To MFS New York Municipal Bond Fund | 0 | 0 | 5,995 | 5,866 | 0 | 0 | ||||||||||||||||||
To MFS North Carolina Municipal Bond Fund | 0 | 0 | 5,995 | 5,866 | 0 | 0 | ||||||||||||||||||
To MFS Pennsylvania Municipal Bond Fund | 0 | 0 | 5,995 | 5,866 | 0 | 0 | ||||||||||||||||||
To MFS South Carolina Municipal Bond Fund | 0 | 0 | 5,995 | 5,866 | 0 | 0 | ||||||||||||||||||
To MFS Tennessee Municipal Bond Fund | 0 | 0 | 5,995 | 5,866 | 0 | 0 | ||||||||||||||||||
To MFS Virginia Municipal Bond Fund | 0 | 0 | 5,995 | 5,866 | 0 | 0 | ||||||||||||||||||
To MFS West Virginia Municipal Bond Fund | 0 | 0 | 5,995 | 5,866 | 0 | 0 | ||||||||||||||||||
Total fees billed by Deloitte to above Funds: | 0 | 0 | 89,988 | 88,052 | 0 | 0 | ||||||||||||||||||
Audit-Related Fees1 | Tax Fees2 | All Other Fees3 | ||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||||
Fees billed by Deloitte: | ||||||||||||||||||||||||
To MFS and MFS Related Entities of MFS Alabama Municipal Bond Fund* | 0 | 0 | 0 | 0 | 5,390 | 0 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS Arkansas Municipal Bond Fund* | 0 | 0 | 0 | 0 | 5,390 | 0 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS California Municipal Bond Fund* | 0 | 0 | 0 | 0 | 5,390 | 0 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS Georgia Municipal Bond Fund* | 0 | 0 | 0 | 0 | 5,390 | 0 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS Maryland Municipal Bond Fund* | 0 | 0 | 0 | 0 | 5,390 | 0 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS Massachusetts Municipal Bond Fund* | 0 | 0 | 0 | 0 | 5,390 | 0 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS Mississippi Municipal Bond Fund* | 0 | 0 | 0 | 0 | 5,390 | 0 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS Municipal Income Fund* | 0 | 0 | 0 | 0 | 5,390 | 0 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS New York Municipal Bond Fund* | 0 | 0 | 0 | 0 | 5,390 | 0 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS North Carolina Municipal Bond Fund* | 0 | 0 | 0 | 0 | 5,390 | 0 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS Pennsylvania Municipal Bond Fund* | 0 | 0 | 0 | 0 | 5,390 | 0 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS South Carolina Municipal Bond Fund* | 0 | 0 | 0 | 0 | 5,390 | 0 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS Tennessee Municipal Bond Fund* | 0 | 0 | 0 | 0 | 5,390 | 0 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS Virginia Municipal Bond Fund* | 0 | 0 | 0 | 0 | 5,390 | 0 | ||||||||||||||||||
To MFS and MFS Related Entities of MFS West Virginia Municipal Bond Fund* | 0 | 0 | 0 | 0 | 5,390 | 0 |
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Aggregate fees for non-audit services | ||||||||
2018 | 2017 | |||||||
Fees billed by Deloitte: | ||||||||
To MFS Alabama Municipal Bond Fund, MFS and MFS Related Entities# | 44,927 | 877,072 | ||||||
To MFS Arkansas Municipal Bond Fund, MFS and MFS Related Entities# | 44,927 | 877,072 | ||||||
To MFS California Municipal Bond Fund, MFS and MFS Related Entities# | 44,927 | 877,072 | ||||||
To MFS Georgia Municipal Bond Fund, MFS and MFS Related Entities# | 44,927 | 877,072 | ||||||
To MFS Maryland Municipal Bond Fund, MFS and MFS Related Entities# | 44,927 | 877,072 | ||||||
To MFS Massachusetts Municipal Bond Fund, MFS and MFS Related Entities# | 44,927 | 877,072 | ||||||
To MFS Mississippi Municipal Bond Fund, MFS and MFS Related Entities# | 44,927 | 877,072 | ||||||
To MFS Municipal Income Fund, MFS and MFS Related Entities# | 44,990 | 877,134 | ||||||
To MFS New York Municipal Bond Fund, MFS and MFS Related Entities# | 44,927 | 877,072 | ||||||
To MFS North Carolina Municipal Bond Fund, MFS and MFS Related Entities# | 44,927 | 877,072 | ||||||
To MFS Pennsylvania Municipal Bond Fund, MFS and MFS Related Entities# | 44,927 | 877,072 | ||||||
To MFS South Carolina Municipal Bond Fund, MFS and MFS Related Entities# | 44,927 | 877,072 | ||||||
To MFS Tennessee Municipal Bond Fund, MFS and MFS Related Entities# | 44,927 | 877,072 | ||||||
To MFS Virginia Municipal Bond Fund, MFS and MFS Related Entities# | 44,927 | 877,072 | ||||||
To MFS West Virginia Municipal Bond Fund, MFS and MFS Related Entities# | 44,927 | 877,072 |
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* | This amount reflects the fees billed to MFS and MFS Related Entities for non-audit services relating directly to the operations and financial reporting of the Funds (portions of which services also related to the operations and financial reporting of other funds within the MFS Funds complex). |
# | This amount reflects the aggregate fees billed by Deloitte, as the case may be, for non-audit services rendered to the Funds and for non-audit services rendered to MFS and the MFS Related Entities. |
1 | The fees included under “Audit-Related Fees” are fees related to assurance and related services that are reasonably related to the performance of the audit or review of financial statements, but not reported under ‘‘Audit Fees,’’ including accounting consultations, agreed-upon procedure reports, attestation reports, comfort letters and internal control reviews. |
2 | The fees included under “Tax Fees” are fees associated with tax compliance, tax advice and tax planning, including services relating to the filing or amendment of federal, state or local income tax returns, regulated investment company qualification reviews and tax distribution and analysis. |
3 | The fees included under “All Other Fees” are fees for products and services provided by Deloitte other than those reported under “Audit Fees,” “Audit-Related Fees” and “Tax Fees”. |
Item 4(e)(1):
Set forth below are the policies and procedures established by the Audit Committee of the Board of Trustees relating to the pre-approval of audit and non-audit related services:
To the extent required by applicable law, pre-approval by the Audit Committee of the Board is needed for all audit and permissible non-audit services rendered to the Fund and all permissible non-audit services rendered to MFS or MFS Related Entities if the services relate directly to the operations and financial reporting of the Registrant. Pre-approval is currently on an engagement-by-engagement basis. In the event pre-approval of such services is necessary between regular meetings of the Audit Committee and it is not practical to wait to seek pre-approval at the next regular meeting of the Audit Committee, pre-approval of such services may be referred to the Chair of the Audit Committee for approval; provided that the Chair may not pre-approve any individual engagement for such services exceeding $50,000 or multiple engagements for such services in the aggregate exceeding $100,000 in each period between regular meetings of the Audit Committee. Any engagement pre-approved by the Chair between regular meetings of the Audit Committee shall be presented for ratification by the entire Audit Committee at its next regularly scheduled meeting.
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Item 4(e)(2):
None, or 0%, of the services relating to the Audit-Related Fees, Tax Fees and All Other Fees paid by the Fund and MFS and MFS Related Entities relating directly to the operations and financial reporting of the Registrant disclosed above were approved by the audit committee pursuant to paragraphs (c)(7)(i)(C) of Rule 2-01 of Regulation S-X (which permits audit committee approval after the start of the engagement with respect to services other than audit, review or attest services, if certain conditions are satisfied).
Item 4(f):
Not applicable.
Item 4(h):
The Registrant’s Audit Committee has considered whether the provision by a Registrant’s independent registered public accounting firm of non-audit services to MFS and MFS Related Entities that were not pre-approved by the Committee (because such services did not relate directly to the operations and financial reporting of the Registrant) was compatible with maintaining the independence of the independent registered public accounting firm as the Registrant’s principal auditors.
ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable to the Registrant.
ITEM 6. | INVESTMENTS |
A schedule of investments of the Registrant is included as part of the report to shareholders of such series under Item 1 of this Form N-CSR.
ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable to the Registrant.
ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable to the Registrant.
ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. |
Not applicable to the Registrant.
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ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
There were no material changes to the procedures by which shareholders may send recommendations to the Board for nominees to the Registrant’s Board since the Registrant last provided disclosure as to such procedures in response to the requirements of Item 407 (c)(2)(iv) of Regulation S-K or this Item.
ITEM 11. | CONTROLS AND PROCEDURES. |
(a) | Based upon their evaluation of the effectiveness of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as conducted within 90 days of the filing date of this report on Form N-CSR, the registrant’s principal financial officer and principal executive officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. |
(b) | There were no changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by the report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
ITEM 12. | DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable to the Registrant.
ITEM 13. | EXHIBITS. |
(a) | File the exhibits listed below as part of this form. Letter or number the exhibits in the sequence indicated. |
(1) | Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Code of Ethics attached hereto. |
(2) | A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2): Attached hereto. |
(b) | If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed “filed” for the purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference: Attached hereto. |
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Notice
A copy of the Amended and Restated Declaration of Trust, as amended, of the Registrant is on file with the Secretary of State of The Commonwealth of Massachusetts and notice is hereby given that this instrument is executed on behalf of the Registrant by an officer of the Registrant as an officer and not individually and the obligations of or arising out of this instrument are not binding upon any of the Trustees or shareholders individually, but are binding only upon the assets and property of the respective constituent series of the Registrant.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) MFS MUNICIPAL SERIES TRUST
By (Signature and Title)* | DAVID L. DILORENZO | |
David L. DiLorenzo, President |
Date: May 16, 2018
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)* | DAVID L. DILORENZO | |
David L. DiLorenzo, President (Principal Executive Officer) |
Date: May 16, 2018
By (Signature and Title)* | JAMES O. YOST | |
James O. Yost, Treasurer (Principal Financial Officer and Accounting Officer) |
Date: May 16, 2018
* | Print name and title of each signing officer under his or her signature. |