Quarterly Report
June 30, 2023
MFS® Maryland
Municipal Bond Fund
Municipal Bond Fund
MMD-Q1
Portfolio of Investments
6/30/23 (unaudited)
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
Issuer | Shares/Par | Value ($) | ||
Municipal Bonds – 97.6% | ||||
Airport Revenue – 1.3% | ||||
Denver, CO, City & County Airport System Rev., “A”, 4.125%, 11/15/2047 | $ | 70,000 | $67,707 | |
Denver, CO, City & County Airport System Rev., “A”, 4.125%, 11/15/2053 | 65,000 | 61,810 | ||
Metropolitan Washington, D.C., Airport Authority, Airport System Refunding Rev., “A”, 5%, 10/01/2025 | 1,525,000 | 1,567,271 | ||
$1,696,788 | ||||
General Obligations - General Purpose – 17.7% | ||||
Anne Arundel County, MD, General Obligation, Consolidated Improvement, 5%, 4/01/2033 | $ | 1,895,000 | $1,959,593 | |
Baltimore County, MD, Metropolitan District (80th Issue), 4%, 3/01/2045 | 1,500,000 | 1,499,564 | ||
Baltimore, MD, General Obligation, Consolidated Public Improvement Refunding, “B”, 5%, 10/15/2023 | 1,050,000 | 1,055,573 | ||
Bridgeview, IL, Stadium and Redevelopment Projects, Taxable, AAC, 5.14%, 12/01/2036 | 225,000 | 203,767 | ||
Cheverly, MD, Public Improvement, 4.5%, 11/01/2047 | 490,000 | 506,416 | ||
Chicago, IL, General Obligation, “A”, 5.5%, 1/01/2040 | 480,000 | 524,886 | ||
Commonwealth of Puerto Rico, General Obligation Restructured Bonds, Capital Appreciation, Series 2022A, 0%, 7/01/2024 | 6,747 | 6,463 | ||
Commonwealth of Puerto Rico, General Obligation Restructured Bonds, Capital Appreciation, Series 2022A, 0%, 7/01/2033 | 53,375 | 32,632 | ||
Commonwealth of Puerto Rico, General Obligation Restructured Bonds, Series 2022A, 5.625%, 7/01/2027 | 45,774 | 48,198 | ||
Commonwealth of Puerto Rico, General Obligation Restructured Bonds, Series 2022A, 5.625%, 7/01/2029 | 45,031 | 48,225 | ||
Commonwealth of Puerto Rico, General Obligation Restructured Bonds, Series 2022A, 5.75%, 7/01/2031 | 121,739 | 132,965 | ||
Commonwealth of Puerto Rico, General Obligation Restructured Bonds, Series 2022A, 4%, 7/01/2033 | 41,476 | 39,405 | ||
Commonwealth of Puerto Rico, General Obligation Restructured Bonds, Series 2022A, 4%, 7/01/2035 | 75,390 | 70,070 | ||
Commonwealth of Puerto Rico, General Obligation Restructured Bonds, Series 2022A, 4%, 7/01/2037 | 31,997 | 28,715 | ||
Commonwealth of Puerto Rico, General Obligation Restructured Bonds, Series 2022A, 4%, 7/01/2041 | 43,504 | 37,774 | ||
Commonwealth of Puerto Rico, General Obligation Restructured Bonds, Series 2022A, 4%, 7/01/2046 | 150,243 | 126,937 | ||
Frederick County, MD, General Obligation, Public Facilities, “A”, 5%, 8/01/2024 | 1,500,000 | 1,531,882 | ||
Howard County, MD, Metropolitan District Project, “B”, 3%, 8/15/2051 | 1,155,000 | 903,278 | ||
Howard County, MD, Metropolitan District Project, “C”, 4%, 2/15/2048 | 1,500,000 | 1,479,779 | ||
Maryland Community Development Administration, Local Government Infrastructure, “A-2”, 4%, 6/01/2036 | 1,210,000 | 1,243,300 | ||
Maryland State & Local Facilities Loan, General Obligation, 4%, 6/01/2029 | 1,500,000 | 1,510,367 | ||
Maryland State & Local Facilities Loan, General Obligation Refunding, “A”, 5%, 8/01/2025 | 2,055,000 | 2,138,646 | ||
Maryland State & Local Facilities Loan, General Obligation, “A”, 5%, 6/01/2036 | 1,000,000 | 1,161,491 | ||
Maryland State & Local Facilities Loan, General Obligation, “C”, 5%, 8/01/2024 | 3,580,000 | 3,651,902 | ||
Montgomery County, MD, General Obligation, Consolidated Public Improvement, “A”, 5%, 8/01/2035 | 1,000,000 | 1,175,150 | ||
Oxford, AL, General Obligation Warrants, “A”, 5%, 7/01/2052 | 385,000 | 412,140 | ||
State of California, Various Purpose General Obligation, 4%, 3/01/2036 | 430,000 | 449,288 | ||
State of Illinois, General Obligation, 5.5%, 5/01/2039 | 160,000 | 174,813 | ||
State of Illinois, General Obligation, “B”, 5.5%, 5/01/2047 | 100,000 | 108,582 | ||
State of Illinois, General Obligation, “C”, 4%, 10/01/2040 | 300,000 | 287,620 | ||
State of Illinois, General Obligation, “C”, 4%, 10/01/2041 | 190,000 | 180,741 | ||
$22,730,162 | ||||
General Obligations - Schools – 0.5% | ||||
Chicago, IL, Board of Education, Unlimited Tax General Obligation Dedicated Rev., “A”, 4%, 12/01/2047 | $ | 325,000 | $284,223 | |
Orange County, CA, Anaheim Elementary School District, AGM, 4%, 8/01/2048 | 405,000 | 403,568 | ||
$687,791 | ||||
Healthcare Revenue - Hospitals – 16.0% | ||||
Colorado Health Facilities Authority Rev. (CommonSpirit Health), “A-2”, 4%, 8/01/2044 | $ | 55,000 | $51,373 | |
Doylestown, PA, Hospital Rev. (Doylestown Hospital), “A”, 4%, 7/01/2045 | 15,000 | 10,895 | ||
Harris County, TX, Cultural Education Facilities Finance Corp., Hospital Rev. (Memorial Hermann Health System), “A”, 4.125%, 7/01/2052 | 540,000 | 517,837 | ||
Maryland Health & Higher Educational Facilities Authority Rev. (Adventist Healthcare), 5%, 1/01/2036 | 750,000 | 778,715 | ||
Maryland Health & Higher Educational Facilities Authority Rev. (Doctors Community Hospital), “A”, 5%, 7/01/2034 | 750,000 | 777,301 | ||
Maryland Health & Higher Educational Facilities Authority Rev. (Frederick Health System), 4%, 7/01/2045 | 1,000,000 | 946,466 | ||
Maryland Health & Higher Educational Facilities Authority Rev. (Greater Baltimore Medical Center), “A”, 4%, 7/01/2039 | 1,145,000 | 1,095,824 | ||
Maryland Health & Higher Educational Facilities Authority Rev. (Greater Baltimore Medical Center), “A”, 4%, 7/01/2041 | 1,000,000 | 944,195 | ||
Maryland Health & Higher Educational Facilities Authority Rev. (LifeBridge Health), 5%, 7/01/2028 (Prerefunded 7/01/2025) | 750,000 | 778,735 | ||
Maryland Health & Higher Educational Facilities Authority Rev. (LifeBridge Health), 5%, 7/01/2033 | 400,000 | 417,977 |
1
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||
Municipal Bonds – continued | ||||
Healthcare Revenue - Hospitals – continued | ||||
Maryland Health & Higher Educational Facilities Authority Rev. (LifeBridge Health), 4%, 7/01/2042 | $ | 1,000,000 | $962,919 | |
Maryland Health & Higher Educational Facilities Authority Rev. (Medlantic/Helix Parent, Inc.), “A”, AGM, 5.25%, 8/15/2038 | 1,155,000 | 1,302,412 | ||
Maryland Health & Higher Educational Facilities Authority Rev. (MedStar Health), 5%, 8/15/2033 | 1,030,000 | 1,055,239 | ||
Maryland Health & Higher Educational Facilities Authority Rev. (MedStar Health), “A”, 5%, 8/15/2041 | 505,000 | 505,131 | ||
Maryland Health & Higher Educational Facilities Authority Rev. (MedStar Health), “A”, 5%, 5/15/2042 | 750,000 | 773,642 | ||
Maryland Health & Higher Educational Facilities Authority Rev. (Mercy Medical Center), “A”, 5%, 7/01/2032 | 600,000 | 618,973 | ||
Maryland Health & Higher Educational Facilities Authority Rev. (Meritus Medical Center), 5%, 7/01/2027 | 500,000 | 510,885 | ||
Maryland Health & Higher Educational Facilities Authority Rev. (Peninsula Regional Health System), “A”, 5%, 7/01/2033 | 1,205,000 | 1,298,725 | ||
Maryland Health & Higher Educational Facilities Authority Rev. (Peninsula Regional Health System), “A”, 5%, 7/01/2035 | 500,000 | 534,956 | ||
Maryland Health & Higher Educational Facilities Authority Rev. (Trinity Health Credit Group), “MD”, 5%, 12/01/2046 | 1,000,000 | 1,025,639 | ||
Maryland Health & Higher Educational Facilities Authority Rev. (University of Maryland Medical System), “B”, 5%, 7/01/2034 | 1,000,000 | 1,058,315 | ||
Maryland Health & Higher Educational Facilities Authority Rev. (University of Maryland Medical System), “D”, 4%, 7/01/2048 | 1,250,000 | 1,175,170 | ||
Maryland Health & Higher Educational Facilities Authority Rev. (Western Maryland Health System), 5.25%, 7/01/2034 (Prerefunded 7/01/2024) | 1,000,000 | 1,018,185 | ||
Montgomery County, MD, Rev. (Trinity Health Credit Group), 5%, 12/01/2045 | 1,240,000 | 1,264,042 | ||
New York Dormitory Authority Rev. (Norwell Health Obligated Group), “A”, 4.25%, 5/01/2052 | 590,000 | 578,788 | ||
Spartanburg County, SC, Regional Health Services District Hospital Rev., “A”, 4%, 4/15/2043 | 635,000 | 579,551 | ||
$20,581,890 | ||||
Healthcare Revenue - Long Term Care – 2.8% | ||||
Baltimore County, MD, Rev. (Oak Crest Village, Inc.), 4%, 1/01/2045 | $ | 1,000,000 | $871,381 | |
Baltimore County, MD, Rev. (Riderwood Village, Inc.), 4%, 1/01/2038 | 450,000 | 421,390 | ||
Howard County, MD, Retirement Community Rev. (Vantage House Facility), 5%, 4/01/2036 | 500,000 | 447,637 | ||
Maryland Health & Higher Educational Facilities Authority Rev. (Charlestown Community Project), “A”, 5%, 1/01/2045 | 500,000 | 507,730 | ||
Rockville, MD, Mayor & Council Economic Development Rev. (Ingleside at King Farm Project), “B”, 5%, 11/01/2042 | 350,000 | 303,402 | ||
Washington County, MD, County Commissioners Rev. (Diakon Lutheran Social Ministries Project), “B”, 5%, 1/01/2032 | 575,000 | 637,980 | ||
Westminster, MD, Refunding Rev. (Carroll Lutheran Village, Inc.), 5.125%, 7/01/2040 | 400,000 | 406,792 | ||
$3,596,312 | ||||
Healthcare Revenue - Other – 0.3% | ||||
Maryland Economic Development Corp., Economic Development Rev. (Lutheran World Relief Refugee), 5.25%, 4/01/2029 | $ | 370,000 | $370,203 | |
Industrial Revenue - Paper – 0.1% | ||||
Valparaiso, IN, Exempt Facilities Rev. (Pratt Paper LLC Project), 7%, 1/01/2044 | $ | 100,000 | $101,486 | |
Miscellaneous Revenue - Other – 2.4% | ||||
Baltimore, MD, Convention Center Hotel Rev., 5%, 9/01/2025 | $ | 20,000 | $19,807 | |
Baltimore, MD, Convention Center Hotel Rev., 5%, 9/01/2034 | 85,000 | 85,202 | ||
Baltimore, MD, Convention Center Hotel Rev., 5%, 9/01/2042 | 70,000 | 65,197 | ||
Maryland Economic Development Corp., Air Cargo Obligated Group Rev. (AFCO Airport Real Estate Group), 5%, 7/01/2028 | 90,000 | 93,658 | ||
Maryland Economic Development Corp., Air Cargo Obligated Group Rev. (AFCO Airport Real Estate Group), 5%, 7/01/2029 | 210,000 | 220,721 | ||
Maryland Economic Development Corp., Air Cargo Obligated Group Rev. (AFCO Airport Real Estate Group), 4%, 7/01/2039 | 1,100,000 | 1,014,552 | ||
Matching Fund Special Purpose Securitization Corp., “A”, 5%, 10/01/2026 | 40,000 | 40,322 | ||
Montgomery County, MD, Transportation Fund Lease Authority Rev., “A”, 5%, 11/01/2036 | 415,000 | 429,502 | ||
New York Liberty Development Corp., Liberty Rev. (3 World Trade Center Project), “1”, 5%, 11/15/2044 (n) | 240,000 | 235,964 | ||
New York, NY, Industrial Development Agency, Airport Facilities Rev. (Transportation Infrastructure Properties LLC), 5%, 7/01/2028 | 390,000 | 390,087 | ||
Pennsylvania Economic Development Financing Authority, Private Activity Rev. (PennDOT Major Bridges Package One Project), AGM, 5%, 12/31/2057 | 490,000 | 501,147 | ||
$3,096,159 | ||||
Multi-Family Housing Revenue – 8.8% | ||||
Howard County, MD, Housing Commission Rev. (Beech's Farm Apartments), VRDN, 2.19%, 12/01/2062 | $ | 4,000,000 | $4,000,000 | |
Howard County, MD, Housing Commission Rev. (Columbia Commons Apartments), “A”, 5%, 6/01/2044 | 500,000 | 503,291 | ||
Howard County, MD, Housing Commission Rev. (Woodfield Oxford Square Apartments), 5%, 12/01/2037 | 750,000 | 786,343 | ||
Maryland Community Development Administration, Department of Housing & Community Development Housing Rev., “A”, FHA, 4%, 7/01/2048 | 500,000 | 454,525 | ||
Maryland Community Development Administration, Department of Housing & Community Development Housing Rev., “B”, 3.65%, 7/01/2049 | 505,000 | 472,983 |
2
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||
Municipal Bonds – continued | ||||
Multi-Family Housing Revenue – continued | ||||
Maryland Community Development Administration, Department of Housing & Community Development Housing Rev., “D”, 3.35%, 7/01/2049 | $ | 1,765,000 | $1,502,507 | |
Montgomery County, MD, Housing Opportunities Commission, Multi-Family Housing Development Rev., “A-1”, FHA, 3.05%, 7/01/2044 | 1,000,000 | 809,478 | ||
Montgomery County, MD, Housing Opportunities Commission, Multi-Family Housing Development Rev., “C”, 5.125%, 7/01/2037 | 1,000,000 | 1,040,323 | ||
Montgomery County, MD, Housing Opportunities Commission, Multi-Family Housing Development Rev., “C”, 3.1%, 7/01/2036 | 1,065,000 | 941,044 | ||
National Finance Authority, New Hampshire Municipal Certificates, “1-A”, 4.375%, 9/20/2036 | 284,282 | 278,434 | ||
New York, NY, Housing Development Corp., Multi-Family Housing Rev. (Sustainable Development Bonds), “G”, FHA, 2.45%, 11/01/2045 | 765,000 | 521,847 | ||
$11,310,775 | ||||
Parking – 1.1% | ||||
Maryland Health & Higher Educational Facilities Authority Rev. (Johns Hopkins Medical Institutions), AAC, 5%, 7/01/2034 | $ | 1,385,000 | $1,394,240 | |
Port Revenue – 1.2% | ||||
Maryland Economic Development Corp. Rev. (Terminal Project), “A”, 5%, 6/01/2044 | $ | 500,000 | $509,005 | |
Maryland Economic Development Corp. Rev. (Terminal Project), “A”, 5%, 6/01/2049 | 250,000 | 252,706 | ||
Maryland Economic Development Corp. Rev. (Transportation Facilities Project), “A”, 5%, 6/01/2031 | 650,000 | 684,223 | ||
New York Liberty Development Corp., Liberty Refunding Rev. (1 World Trade Center Project), 2.75%, 2/15/2044 | 190,000 | 141,359 | ||
$1,587,293 | ||||
Sales & Excise Tax Revenue – 2.3% | ||||
Guam Government Business Privilege Tax Refunding, “F”, 5%, 1/01/2029 | $ | 10,000 | $10,413 | |
Guam Government Business Privilege Tax Refunding, “F”, 5%, 1/01/2030 | 5,000 | 5,221 | ||
Guam Government Business Privilege Tax Refunding, “F”, 5%, 1/01/2031 | 10,000 | 10,494 | ||
Guam Government Business Privilege Tax Refunding, “F”, 4%, 1/01/2042 | 75,000 | 66,289 | ||
Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., “2019A-1”, 4.55%, 7/01/2040 | 21,000 | 20,517 | ||
Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., “2019A-1”, 4.75%, 7/01/2053 | 81,000 | 77,184 | ||
Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., “2019A-1”, 5%, 7/01/2058 | 1,276,000 | 1,243,932 | ||
Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., “2019A-2”, 4.329%, 7/01/2040 | 160,000 | 152,165 | ||
Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., “2019A-2”, 4.329%, 7/01/2040 | 75,000 | 71,327 | ||
Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., “2019A-2”, 4.784%, 7/01/2058 | 267,000 | 253,045 | ||
Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., Capital Appreciation, “2019A-1”, 0%, 7/01/2024 | 1,000 | 960 | ||
Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., Capital Appreciation, “2019A-1”, 0%, 7/01/2027 | 36,000 | 30,571 | ||
Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., Capital Appreciation, “2019A-1”, 0%, 7/01/2029 | 6,000 | 4,661 | ||
Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., Capital Appreciation, “2019A-1”, 0%, 7/01/2031 | 338,000 | 241,127 | ||
Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., Capital Appreciation, “2019A-1”, 0%, 7/01/2033 | 332,000 | 215,796 | ||
Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., Capital Appreciation, “2019A-1”, 0%, 7/01/2046 | 1,467,000 | 412,124 | ||
Wisconsin Public Finance Authority Limited Obligation Grant Rev. (American Dream at Meadowlands Project), “A”, 6.25%, 8/01/2027 (a)(d)(n) | 120,000 | 91,650 | ||
$2,907,476 | ||||
Secondary Schools – 0.2% | ||||
District of Columbia Rev. (Rocketship D.C.), “A”, 5%, 6/01/2039 (n) | $ | 250,000 | $231,843 | |
Single Family Housing - Local – 0.8% | ||||
Montgomery County, MD, Housing Opportunities Commission (Single Family Mortgage Rev.), “A”, FHA, 5.75%, 7/01/2054 | $ | 1,000,000 | $1,085,999 | |
Single Family Housing - State – 6.1% | ||||
Maryland Community Development Administration, Department of Housing & Community Development Housing Rev., “B”, 2.1%, 9/01/2041 | $ | 1,500,000 | $1,057,457 | |
Maryland Community Development Administration, Department of Housing & Community Development Residential Rev., “A”, GNMA, 4.45%, 9/01/2043 | 500,000 | 495,358 | ||
Maryland Community Development Administration, Department of Housing & Community Development Residential Rev., “A”, GNMA, 5.5%, 9/01/2053 | 1,000,000 | 1,071,040 | ||
Maryland Community Development Administration, Department of Housing & Community Development Residential Rev., “C”, 2.1%, 3/01/2033 | 250,000 | 212,800 |
3
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||
Municipal Bonds – continued | ||||
Single Family Housing - State – continued | ||||
Maryland Community Development Administration, Department of Housing & Community Development Residential Rev., “C”, 3%, 9/01/2051 | $ | 1,000,000 | $960,409 | |
Maryland Community Development Administration, Department of Housing & Community Development Residential Rev., “D”, 5.05%, 3/01/2047 | 1,000,000 | 1,027,172 | ||
Maryland Community Development Administration, Department of Housing & Community Development Residential Rev., “D”, 6%, 3/01/2053 | 1,000,000 | 1,079,982 | ||
Maryland Community Development Administration, Department of Housing & Community Development Residential Rev., “C”, 3%, 9/01/2039 | 1,000,000 | 861,699 | ||
West Virginia Housing Development Fund Finance Bonds, “C”, 4.85%, 11/01/2052 | 1,000,000 | 1,007,687 | ||
$7,773,604 | ||||
State & Local Agencies – 9.3% | ||||
Maryland Stadium Authority Rev., Baltimore City Public Schools Construction and Revitalization Program, 5%, 5/01/2041 (Prerefunded 5/01/2026) | $ | 500,000 | $528,456 | |
Maryland Stadium Authority Rev., Baltimore City Public Schools Construction and Revitalization Program, “A”, 5%, 5/01/2038 | 500,000 | 531,479 | ||
Maryland Stadium Authority Rev., Baltimore City Public Schools Construction and Revitalization Program, “A”, 5%, 5/01/2047 | 225,000 | 235,128 | ||
Maryland Stadium Authority Rev., Baltimore City Public Schools Construction and Revitalization Program, Capital Appreciation, “C”, 0%, 5/01/2054 | 2,000,000 | 470,586 | ||
Maryland Stadium Authority, Built to Learn Rev., 4%, 6/01/2046 | 1,405,000 | 1,352,049 | ||
Maryland Stadium Authority, Built to Learn Rev., “A”, 4%, 6/01/2036 | 1,000,000 | 1,026,644 | ||
Maryland Stadium Authority, Built to Learn Rev., “A”, 4%, 6/01/2041 | 1,500,000 | 1,501,723 | ||
Maryland Stadium Authority, Hagerstown Multi-Use Sports & Events Facility Lease Rev., “A”, 5%, 6/01/2052 | 1,000,000 | 1,087,845 | ||
Prince George's County, MD, COP (Suitland Public Infrastructure), 3%, 10/01/2038 | 1,000,000 | 887,604 | ||
Prince George's County, MD, COP (University of Maryland Capital Region Medical Center), 5%, 10/01/2037 | 1,000,000 | 1,076,521 | ||
Prince George's County, MD, COP (University of Maryland Capital Region Medical Center), 5%, 10/01/2048 | 1,500,000 | 1,572,547 | ||
Washington, D.C., Metropolitan Area Transit Authority Dedicated Rev. (Green Bonds - Climate Bond Certified), “A”, 5%, 7/15/2040 | 1,500,000 | 1,693,321 | ||
$11,963,903 | ||||
Student Loan Revenue – 0.5% | ||||
Iowa Student Loan Liquidity Corp. Rev., “B”, 3.5%, 12/01/2044 | $ | 115,000 | $93,970 | |
New Jersey Higher Education Student Assistance Authority, Senior Student Loan Rev., “B”, 4%, 12/01/2041 | 490,000 | 484,767 | ||
$578,737 | ||||
Tax - Other – 1.7% | ||||
Chicago, IL, Board of Education, Dedicated Capital Improvement Tax Bond, 5%, 4/01/2045 | $ | 85,000 | $87,839 | |
Chicago, IL, Board of Education, Dedicated Capital Improvement Tax Bond, 5.75%, 4/01/2048 | 190,000 | 207,450 | ||
New York, NY, Transitional Finance Authority Rev., “C-1”, 4%, 5/01/2045 | 850,000 | 838,779 | ||
St. Clair County, AL, Board of Education, Special Tax School Warrants (15 Mill Moody Tax), “A”, BAM, 4.125%, 2/01/2048 | 500,000 | 492,226 | ||
Triborough Bridge & Tunnel Authority Rev., NY, Payroll Mobility Tax (MTA Bridges and Tunnels), ”C-3“, 3%, 5/15/2051 | 600,000 | 449,162 | ||
Wisconsin Public Finance Authority Limited Obligation PILOT Rev. (American Dream at Meadowlands Project), 7%, 12/01/2050 | 100,000 | 90,791 | ||
$2,166,247 | ||||
Tax Assessment – 3.5% | ||||
Baltimore, MD, Special Obligation (East Baltimore Research Park Project), “A”, 5%, 9/01/2038 | $ | 500,000 | $501,181 | |
Baltimore, MD, Special Obligation Rev. (Harbor Point Project), “B”, 3.875%, 6/01/2046 (n) | 300,000 | 242,360 | ||
Brunswick, MD, Special Obligation Refunding (Brunswick Crossing Special Taxing District), 5%, 7/01/2036 | 500,000 | 505,990 | ||
Frederick County, MD, Limited Obligation (Jefferson Technology Park Project), “B”, 4.625%, 7/01/2043 (n) | 250,000 | 243,450 | ||
Frederick County, MD, Limited Obligation (Oakdale-Lake Linganore Project), 3.75%, 7/01/2039 | 500,000 | 439,055 | ||
Frederick County, MD, Senior Special Obligation (Urbana Community Development Authority), “B”, 4%, 7/01/2040 | 180,000 | 164,183 | ||
Frederick County, MD, Senior Special Obligation Refunding (Urbana Community Development Authority), “A”, 5%, 7/01/2026 | 820,000 | 855,068 | ||
Frederick County, MD, Special Tax Limited Obligation Refunding (Jefferson Technology Park Project), “A”, 5%, 7/01/2043 (n) | 250,000 | 244,288 | ||
Howard County, MD, Special Obligation (Annapolis Junction Town Center Project), 6.1%, 2/15/2044 | 230,000 | 222,909 | ||
Howard County, MD, Special Obligation (Downtown Columbia Project), “A”, 4.5%, 2/15/2047 (n) | 300,000 | 272,376 | ||
Maryland Economic Development Corp., Special Obligation (Port Covington Project), 4%, 9/01/2050 (n) | 500,000 | 424,812 | ||
Prince George's County, MD, Special Obligation (Westphalia Town Center Project), 5.25%, 7/01/2048 (n) | 400,000 | 393,598 | ||
$4,509,270 |
4
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||
Municipal Bonds – continued | ||||
Tobacco – 0.6% | ||||
Buckeye, OH, Tobacco Settlement Financing Authority Senior Asset-Backed Refunding, 2020A-2, “1”, 4%, 6/01/2048 | $ | 410,000 | $379,469 | |
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., Taxable, “B-1”, 3.85%, 6/01/2050 | 365,000 | 330,678 | ||
$710,147 | ||||
Toll Roads – 1.1% | ||||
Metropolitan Washington, D.C., Airport Authority, Dulles Toll Road Rev. (Dulles Metrorail and Capital Improvement Projects), “A”, AGM, 4%, 10/01/2052 | $ | 500,000 | $475,170 | |
Virginia Small Business Financing Authority Senior Lien Refunding Rev. (95 Express Lanes LLC Project), 5%, 1/01/2035 | 915,000 | 979,192 | ||
$1,454,362 | ||||
Transportation - Special Tax – 6.0% | ||||
Maryland Department of Transportation, Consolidated Transportation, 5%, 10/01/2026 | $ | 1,335,000 | $1,421,071 | |
Maryland Department of Transportation, Consolidated Transportation, 4%, 12/15/2029 | 1,500,000 | 1,506,172 | ||
Maryland Department of Transportation, Consolidated Transportation Refunding, “A”, 5%, 12/01/2025 | 1,080,000 | 1,129,418 | ||
Maryland Department of Transportation, Consolidated Transportation, “A”, 3%, 10/01/2033 | 500,000 | 487,574 | ||
Metropolitan Transportation Authority, NY, Refunding Rev. (Climate Bond Certified), “E”, 4%, 11/15/2045 | 1,000,000 | 943,970 | ||
New Jersey Transportation Trust Fund Authority, “CC”, 5.5%, 6/15/2050 | 75,000 | 82,879 | ||
Washington, D.C., Metropolitan Area Transit Authority Gross Rev., 5%, 7/01/2037 | 440,000 | 462,960 | ||
Washington, D.C., Metropolitan Area Transit Authority Gross Rev., 5%, 7/01/2038 | 440,000 | 461,926 | ||
Washington, D.C., Metropolitan Area Transit Authority Gross Rev., “B”, 5%, 7/01/2042 | 1,140,000 | 1,188,157 | ||
$7,684,127 | ||||
Universities - Colleges – 4.1% | ||||
Maryland Health & Higher Educational Facilities Authority Rev. (Goucher College), “A”, 5%, 7/01/2044 | $ | 500,000 | $512,023 | |
Maryland Health & Higher Educational Facilities Authority Rev. (Loyola University Maryland), 5%, 10/01/2032 | 500,000 | 511,967 | ||
Maryland Health & Higher Educational Facilities Authority Rev. (Loyola University Maryland), “A”, 5%, 10/01/2049 | 1,000,000 | 1,048,113 | ||
Maryland Health & Higher Educational Facilities Authority Rev. (Maryland Institute College of Art Issue), 5%, 6/01/2033 | 450,000 | 465,783 | ||
Maryland Health & Higher Educational Facilities Authority Rev. (Stevenson University), “A”, 4%, 6/01/2046 | 750,000 | 668,199 | ||
Maryland Health & Higher Educational Facilities Authority Rev. (Stevenson University), “A”, 4%, 6/01/2051 | 250,000 | 215,927 | ||
Massachusetts Development Finance Agency Rev. (Suffolk University), 4%, 7/01/2051 | 420,000 | 352,024 | ||
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 | 85,110 | ||
University System of Maryland, Auxiliary Facility & Tuition Rev., “A”, 5%, 4/01/2028 | 1,205,000 | 1,327,960 | ||
Virginia College Building Authority, Educational Facilities Rev. (Marymount University Project), “B”, 5.25%, 7/01/2035 (n) | 110,000 | 110,514 | ||
$5,297,620 | ||||
Universities - Dormitories – 2.5% | ||||
California Municipal Finance Authority, Student Housing Rev. (CHF-Davis I LLC - West Village Student Housing Project), BAM, 5%, 5/15/2051 | $ | 660,000 | $679,294 | |
Maryland Economic Development Corp., Senior Student Housing Rev. (University of Maryland, College Park Projects), AGM, 5%, 6/01/2035 | 750,000 | 782,087 | ||
Maryland Economic Development Corp., Student Housing Rev. (Morgan State University Project), 5%, 7/01/2050 | 1,000,000 | 1,025,473 | ||
Maryland Economic Development Corp., Student Housing Rev. (Salisbury University Project), 5%, 6/01/2027 | 410,000 | 410,113 | ||
Maryland Economic Development Corp., Student Housing Rev. (Salisbury University Project), 5%, 6/01/2030 | 300,000 | 300,056 | ||
$3,197,023 | ||||
Utilities - Electric Power – 0.3% | ||||
Texas Municipal Power Agency, Transmission System Rev., AGM, 2%, 9/01/2033 | $ | 555,000 | $446,905 | |
Utilities - Municipal Owned – 0.4% | ||||
Puerto Rico Electric Power Authority Refunding Rev., “DDD”, 5%, 7/01/2020 (a)(d) | $ | 10,000 | $3,750 | |
Puerto Rico Electric Power Authority Refunding Rev., “DDD”, 5%, 7/01/2021 (a)(d) | 100,000 | 37,500 | ||
Puerto Rico Electric Power Authority Refunding Rev., “DDD”, 5%, 7/01/2022 (a)(d) | 160,000 | 60,000 | ||
Puerto Rico Electric Power Authority Refunding Rev., “VV”, NPFG, 5.25%, 7/01/2034 | 10,000 | 9,859 | ||
Puerto Rico Electric Power Authority Rev., “A”, 5%, 7/01/2029 (a)(d) | 250,000 | 93,750 | ||
Puerto Rico Electric Power Authority Rev., “A”, 5%, 7/01/2042 (a)(d) | 40,000 | 15,000 | ||
Puerto Rico Electric Power Authority Rev., “AAA”, 5.25%, 7/01/2021 (a)(d) | 20,000 | 7,500 | ||
Puerto Rico Electric Power Authority Rev., “AAA”, 5.25%, 7/01/2030 (a)(d) | 10,000 | 3,750 | ||
Puerto Rico Electric Power Authority Rev., “CCC”, 5.25%, 7/01/2027 (a)(d) | 95,000 | 35,625 |
5
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||
Municipal Bonds – continued | ||||
Utilities - Municipal Owned – continued | ||||
Puerto Rico Electric Power Authority Rev., “TT”, 5%, 7/01/2021 (a)(d) | $ | 45,000 | $16,875 | |
Puerto Rico Electric Power Authority Rev., “TT”, 5%, 7/01/2024 (a)(d) | 40,000 | 15,000 | ||
Puerto Rico Electric Power Authority Rev., “TT”, 5%, 7/01/2027 (a)(d) | 10,000 | 3,750 | ||
Puerto Rico Electric Power Authority Rev., “TT”, 5%, 7/01/2037 (a)(d) | 125,000 | 46,875 | ||
Puerto Rico Electric Power Authority Rev., “WW”, 5.375%, 7/01/2022 (a)(d) | 10,000 | 3,750 | ||
Puerto Rico Electric Power Authority Rev., “WW”, 5.25%, 7/01/2025 (a)(d) | 20,000 | 7,500 | ||
Puerto Rico Electric Power Authority Rev., “ZZ”, 5%, 7/01/2018 (a)(d) | 60,000 | 22,500 | ||
Puerto Rico Electric Power Authority Rev., “ZZ”, 5.25%, 7/01/2024 (a)(d) | 65,000 | 24,375 | ||
Puerto Rico Electric Power Authority Rev., “ZZ”, 5.25%, 7/01/2024 (a)(d) | 20,000 | 7,500 | ||
Puerto Rico Electric Power Authority Rev., “ZZ”, 5.25%, 7/01/2026 (a)(d) | 65,000 | 24,375 | ||
Puerto Rico Electric Power Authority Rev., Taxable, “EEE”, 6.05%, 7/01/2032 (a)(d) | 50,000 | 18,750 | ||
$457,984 | ||||
Utilities - Other – 3.0% | ||||
Alabama Southeast Energy Authority Commodity Supply Rev. (Project No. 5), “A”, 5.25%, 1/01/2054 (Put Date 7/01/2029) | $ | 665,000 | $695,321 | |
Black Belt Energy Gas District, AL, Gas Project Rev., “A”, 4%, 6/01/2051 (Put Date 12/01/2031) | 375,000 | 370,477 | ||
Black Belt Energy Gas District, AL, Gas Project Rev., “C-1”, 5.25%, 2/01/2053 (Put Date 6/01/2029) | 745,000 | 779,880 | ||
California Community Choice Financing Authority, Clean Energy Project Rev., “C”, 5.25%, 1/01/2054 (Put Date 10/01/2031) | 720,000 | 753,191 | ||
Tennergy Corp., TN, Gas Supply Rev., “A”, 5.5%, 10/01/2053 (Put Date 12/01/2030) | 410,000 | 434,065 | ||
Tennessee Energy Acquisition Corp., Gas Project Rev., “A-1”, 5%, 5/01/2053 (Put Date 5/01/2028) | 650,000 | 672,450 | ||
Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2023 | 140,000 | 140,236 | ||
$3,845,620 | ||||
Water & Sewer Utility Revenue – 3.0% | ||||
Baltimore, MD, Project Rev. (Mayor and City Council of Baltimore Water Projects), “A”, 4%, 7/01/2038 | $ | 550,000 | $558,511 | |
Baltimore, MD, Project Rev. (Stormwater Projects), “A”, 5%, 7/01/2049 | 1,000,000 | 1,065,027 | ||
Baltimore, MD, Refunding Rev. (Mayor and City Council of Baltimore Water Projects), “B”, 5%, 7/01/2042 (Prerefunded 1/01/2024) | 1,320,000 | 1,331,540 | ||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 7/01/2036 | 20,000 | 20,418 | ||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 1/01/2046 | 105,000 | 106,017 | ||
Guam Waterworks Authority Rev. (Water and Wastewater System), “A”, 5%, 7/01/2029 | 205,000 | 206,924 | ||
Guam Waterworks Authority Rev. (Water and Wastewater System), “A”, 5%, 7/01/2035 | 205,000 | 206,651 | ||
Guam Waterworks Authority Rev. (Water and Wastewater System), “A”, 5%, 1/01/2050 | 130,000 | 131,959 | ||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Sewage Disposal System Rev. Refunding Second Lien Local Project), “C-7”, NPFG, 5%, 7/01/2032 | 25,000 | 25,370 | ||
Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Second Lien Local Project), “D-6”, NPFG, 5%, 7/01/2036 | 30,000 | 30,304 | ||
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 | 15,196 | ||
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 | 35,368 | ||
Mississippi Development Bank Special Obligation (Jackson Water and Sewer System Rev. Bond Project), AGM, 6.875%, 12/01/2040 | 50,000 | 50,559 | ||
$3,783,844 | ||||
Total Municipal Bonds | $125,247,810 | |||
Bonds – 0.2% | ||||
Consumer Services – 0.2% | ||||
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2025 (n) | $ | 165,000 | $146,651 | |
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2043 (n) | 378,197 | 119,392 | ||
Total Bonds | $266,043 | |||
Contingent Value Instruments – 0.1% | ||||
General Obligations - General Purpose – 0.1% | ||||
Commonwealth of Puerto Rico, General Obligation Contingent Value Instrument, 11/01/2043 | $ | 196,379 | $98,926 |
6
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||
Investment Companies (h) – 0.9% | ||||
Money Market Funds – 0.9% | ||||
MFS Institutional Money Market Portfolio, 5.04% (v) | 1,186,886 | $1,187,123 | ||
Other Assets, Less Liabilities – 1.2% | 1,524,112 | |||
Net Assets – 100.0% | $128,324,014 |
(a) | Non-income producing security. | |||
(d) | In default. | |||
(h) | An affiliated issuer, which may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of the fund's investments in affiliated issuers and in unaffiliated issuers were $1,187,123 and $125,612,779, 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 $2,756,898, representing 2.1% of net assets. | |||
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
The following abbreviations are used in this report and are defined: | |
AAC | Ambac Assurance Corp. |
AGM | Assured Guaranty Municipal |
BAM | Build America Mutual |
COP | Certificate of Participation |
FHA | Federal Housing Administration |
GNMA | Government National Mortgage Assn. |
NPFG | National Public Finance Guarantee Corp. |
VRDN | Variable rate demand note that may be puttable to the issuer at the option of the holder. The stated interest rate, which generally resets either daily or weekly, represents the rate in effect at period end and may not be the current rate. |
See attached supplemental information. For more information see notes to financial statements as disclosed in the most recent semiannual or annual report.
7
Supplemental Information
6/30/23 (unaudited)
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.
(1) Investment Valuations
Subject to its oversight, the fund's Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of the fund’s investments to MFS as the fund's adviser, pursuant to the fund’s valuation policy and procedures which have been adopted by the adviser and approved by the Board. In accordance with Rule 2a-5 under the Investment Company Act of 1940, the Board of Trustees designated the adviser as the “valuation designee” of the fund. If the adviser, as valuation designee, determines that reliable market quotations are not readily available for an investment, the investment is valued at fair value as determined in good faith by the adviser in accordance with the adviser’s fair valuation policy and procedures.
Under the fund's valuation policy and procedures, 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.
Under the fund’s valuation policy and procedures, market quotations are not considered to be readily available for debt instruments, floating rate loans, and many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services or otherwise determined by the adviser in accordance with the adviser’s fair valuation policy and procedures. 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. In determining values, third-party pricing services can utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics, spreads and other market data. An investment may also be valued at fair value if the adviser determines that the 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 halt of trading of a specific security where trading does not resume prior to the close of the exchange or market on which the security is principally traded. The adviser generally relies on third-party pricing services or other information (such as the correlation with price movements of similar securities in the same or other markets; the type, cost and investment characteristics of the security; the business and financial condition of the issuer; and trading and other market data) to assist in determining whether to fair value and at what value to fair value an investment. The value of an investment for purposes of calculating the fund’s net asset value can differ depending on the source and method used to determine value. When fair valuation is used, the value of an investment used to determine the fund’s net asset value may differ from quoted or published prices for the same investment. There can be no assurance that the fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the fund determines its net asset value per share.
Various inputs are used in determining the value of the fund's assets or liabilities. These inputs are categorized into three broad levels. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment's level within the fair value hierarchy is based on the lowest level of 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 significant 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 June 30, 2023 in valuing the fund's assets and liabilities:
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
Municipal Bonds | $— | $125,346,736 | $— | $125,346,736 |
U.S. Corporate Bonds | — | 266,043 | — | 266,043 |
Mutual Funds | 1,187,123 | — | — | 1,187,123 |
Total | $1,187,123 | $125,612,779 | $— | $126,799,902 |
For further information regarding security characteristics, see the Portfolio of Investments.
(2) 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 following were affiliated issuers:
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $2,575,767 | $11,070,522 | $12,460,061 | $1,177 | $(282) | $1,187,123 |
8
Supplemental Information (unaudited) – continued
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $22,874 | $— |
(3) Jurisdiction Weightings
Jurisdiction weighting percentages based on net assets, as of June 30, 2023, are as follows:
Maryland | 75.3% |
Washington DC | 4.8% |
New York | 3.2% |
Puerto Rico | 3.1% |
Alabama | 2.2% |
California | 2.1% |
Illinois | 1.6% |
Virginia | 1.1% |
Tennessee | 1.0% |
West Virginia | 0.8% |
Texas | 0.8% |
Guam | 0.6% |
South Carolina | 0.5% |
New Jersey | 0.4% |
Pennsylvania | 0.4% |
Ohio | 0.3% |
Massachusetts | 0.3% |
New Hampshire | 0.2% |
Wisconsin | 0.1% |
Colorado | 0.1% |
Michigan | 0.1% |
Indiana | 0.1% |
Iowa | 0.1% |
Mississippi (o) | 0.0% |
U.S. Virgin Islands (o) | 0.0% |
(o) Less than 0.1%.
The jurisdiction weighting percentages include both accrued interest amounts and equivalent exposure from any derivatives holdings, if applicable.
9