Quarterly Report
December 31, 2023
MFS® North Carolina
Municipal Bond Fund
Municipal Bond Fund
MNC-Q3
Portfolio of Investments
12/31/23 (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 – 96.5% | ||||
Airport Revenue – 10.0% | ||||
Charlotte, NC, Airport Rev. (Charlotte/Douglas International Airport), “A”, 5%, 7/01/2032 | $ | 1,245,000 | $1,255,383 | |
Charlotte, NC, Airport Rev. (Charlotte/Douglas International Airport), “A”, 5%, 7/01/2039 | 1,000,000 | 1,099,145 | ||
Charlotte, NC, Airport Rev. (Charlotte/Douglas International Airport), “A”, 4%, 7/01/2052 | 5,000,000 | 5,023,089 | ||
Charlotte, NC, Airport Rev. (Charlotte/Douglas International Airport), “B”, 4%, 7/01/2037 | 1,000,000 | 1,014,286 | ||
Charlotte, NC, Airport Rev. (Charlotte/Douglas International Airport), “B”, 4%, 7/01/2039 | 1,700,000 | 1,712,310 | ||
Charlotte, NC, Airport Rev. (Charlotte/Douglas International Airport), “B”, 4%, 7/01/2040 | 2,000,000 | 2,014,458 | ||
Charlotte, NC, Airport Rev. (Charlotte/Douglas International Airport), “B”, 4%, 7/01/2041 | 1,500,000 | 1,510,889 | ||
Charlotte, NC, Airport Rev. (Charlotte/Douglas International Airport), “B”, 5%, 7/01/2041 | 2,155,000 | 2,368,988 | ||
Charlotte, NC, Airport Rev. (Charlotte/Douglas International Airport), “B”, 5%, 7/01/2042 | 1,000,000 | 1,033,816 | ||
Charlotte, NC, Airport Rev. (Charlotte/Douglas International Airport), “B”, 5%, 7/01/2042 | 2,300,000 | 2,515,516 | ||
Charlotte, NC, Airport Rev. (Charlotte/Douglas International Airport), “B”, 5%, 7/01/2047 | 2,000,000 | 2,058,723 | ||
Charlotte, NC, Airport Rev. (Charlotte/Douglas International Airport), “B”, 5%, 7/01/2049 | 2,500,000 | 2,602,587 | ||
Greater Asheville, NC, Regional Airport Authority System Rev., AGM, 5.25%, 7/01/2048 | 1,000,000 | 1,087,628 | ||
Greater Asheville, NC, Regional Airport Authority System Rev., AGM, 5.25%, 7/01/2053 | 4,000,000 | 4,314,895 | ||
Greater Asheville, NC, Regional Airport Authority System Rev., “A”, AGM, 5.5%, 7/01/2052 | 1,500,000 | 1,641,978 | ||
New York Transportation Development Corp. Special Facilities (LaGuardia Airport Terminal B Redevelopment Project), “A”, 5%, 7/01/2034 | 1,275,000 | 1,279,373 | ||
New York Transportation Development Corp., Special Facilities Rev. (John F. Kennedy International Airport New Terminal One Project), AGM, 5.125%, 6/30/2060 | 2,580,000 | 2,705,930 | ||
Raleigh-Durham, NC, Airport Authority Refunding Rev., “A”, 5%, 5/01/2034 | 1,150,000 | 1,273,594 | ||
Raleigh-Durham, NC, Airport Authority Refunding Rev., “A”, 5%, 5/01/2035 | 1,000,000 | 1,104,354 | ||
Raleigh-Durham, NC, Airport Authority Refunding Rev., “A”, 5%, 5/01/2036 | 1,000,000 | 1,098,549 | ||
Raleigh-Durham, NC, Airport Authority Rev., “A”, 5%, 5/01/2036 | 2,000,000 | 2,098,963 | ||
Raleigh-Durham, NC, Airport Authority Rev., “A”, 5%, 5/01/2037 | 2,000,000 | 2,090,991 | ||
San Francisco, CA, City & County Airports Commission, International Airport Rev., “B”, 5%, 5/01/2046 | 1,445,000 | 1,461,571 | ||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, 5%, 12/01/2044 | 175,000 | 176,151 | ||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, BAM, 5%, 12/01/2039 | 195,000 | 196,969 | ||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/2039 | 150,000 | 150,407 | ||
Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/2044 | 240,000 | 240,642 | ||
$45,131,185 | ||||
General Obligations - General Purpose – 4.8% | ||||
Asheville, NC, General Obligation Refunding, 4%, 6/01/2039 | $ | 295,000 | $313,852 | |
Asheville, NC, General Obligation Refunding, 4%, 6/01/2041 | 500,000 | 522,443 | ||
Bridgeview, IL, Stadium and Redevelopment Projects, Taxable, AAC, 5.14%, 12/01/2036 | 1,030,000 | 922,591 | ||
Cartersville, GA, General Obligation, 2%, 10/01/2040 | 2,190,000 | 1,573,966 | ||
Chicago, IL, General Obligation, “A”, 5.5%, 1/01/2035 | 235,000 | 256,046 | ||
Chicago, IL, General Obligation, “A”, 5.5%, 1/01/2040 | 1,655,000 | 1,808,180 | ||
Chicago, IL, General Obligation, “F”, 5.5%, 1/01/2042 | 665,000 | 668,987 | ||
Commonwealth of Puerto Rico, General Obligation Restructured Bonds, Capital Appreciation, Series 2022A, 0%, 7/01/2024 | 30,211 | 29,618 | ||
Commonwealth of Puerto Rico, General Obligation Restructured Bonds, Capital Appreciation, Series 2022A, 0%, 7/01/2033 | 239,000 | 148,997 | ||
Commonwealth of Puerto Rico, General Obligation Restructured Bonds, Series 2022A, 5.625%, 7/01/2029 | 201,638 | 218,691 | ||
Commonwealth of Puerto Rico, General Obligation Restructured Bonds, Series 2022A, 5.75%, 7/01/2031 | 554,850 | 617,191 | ||
Commonwealth of Puerto Rico, General Obligation Restructured Bonds, Series 2022A, 4%, 7/01/2033 | 185,717 | 181,836 | ||
Commonwealth of Puerto Rico, General Obligation Restructured Bonds, Series 2022A, 4%, 7/01/2035 | 344,225 | 332,812 | ||
Commonwealth of Puerto Rico, General Obligation Restructured Bonds, Series 2022A, 4%, 7/01/2037 | 143,274 | 136,785 | ||
Commonwealth of Puerto Rico, General Obligation Restructured Bonds, Series 2022A, 4%, 7/01/2041 | 194,798 | 178,656 | ||
Commonwealth of Puerto Rico, General Obligation Restructured Bonds, Series 2022A, 4%, 7/01/2046 | 680,587 | 606,180 | ||
Durham County, NC, General Obligation Refunding, 4%, 6/01/2036 | 500,000 | 525,490 | ||
Durham County, NC, General Obligation Refunding, 4%, 6/01/2037 | 450,000 | 469,141 | ||
Durham County, NC, General Obligation Refunding, 4%, 6/01/2039 | 650,000 | 671,788 | ||
Gaston County, NC, Rev., 5%, 4/01/2035 | 610,000 | 681,342 | ||
Granville County, NC, 5%, 10/01/2034 | 675,000 | 742,757 | ||
Granville County, NC, 5%, 10/01/2035 | 690,000 | 756,906 | ||
Howard County, MD, Metropolitan District Project, “B”, 3%, 8/15/2051 | 4,000,000 | 3,218,237 | ||
Lee County, NC, Limited Obligation, 3.25%, 5/01/2035 | 1,000,000 | 984,449 |
1
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||
Municipal Bonds – continued | ||||
General Obligations - General Purpose – continued | ||||
Lee County, NC, Limited Obligation, 4%, 5/01/2037 | $ | 855,000 | $874,857 | |
Randolph County, NC, 4%, 10/01/2037 | 1,045,000 | 1,074,971 | ||
State of Illinois, General Obligation, 5.5%, 5/01/2039 | 375,000 | 415,184 | ||
State of Illinois, General Obligation, 5.75%, 5/01/2045 | 350,000 | 385,190 | ||
State of Illinois, General Obligation, “C”, 4%, 10/01/2040 | 1,065,000 | 1,066,880 | ||
State of Illinois, General Obligation, “C”, 4%, 10/01/2041 | 665,000 | 662,644 | ||
Texas Cedar Port Navigation & Improvement District, Unlimited Tax, 4.5%, 9/01/2048 | 460,000 | 464,101 | ||
Texas Cedar Port Navigation & Improvement District, Unlimited Tax, 4.5%, 9/01/2052 | 185,000 | 185,953 | ||
$21,696,721 | ||||
General Obligations - Schools – 0.3% | ||||
Chicago, IL, Board of Education, Unlimited Tax General Obligation Dedicated Rev., “A”, 4%, 12/01/2047 | $ | 1,510,000 | $1,309,651 | |
Healthcare Revenue - Hospitals – 12.2% | ||||
Allegheny County, PA, Hospital Development Authority Rev. (Allegheny Health Network Obligated Group), “A”, 4%, 4/01/2044 | $ | 555,000 | $540,470 | |
Charlotte-Mecklenburg, NC, Hospital Authority Health Care System Rev. (Atrium Health), “D”, 3.625%, 1/15/2048 (Put Date 6/15/2027) | 2,500,000 | 2,526,093 | ||
Charlotte-Mecklenburg, NC, Hospital Authority Health Care System Rev. (Atrium Health), “D”, 5%, 1/15/2049 (Put Date 12/01/2031) | 3,910,000 | 4,519,798 | ||
Charlotte-Mecklenburg, NC, Hospital Authority Health Care System Rev. (Carolinas Health Care System), “A”, 5%, 1/15/2036 | 3,000,000 | 3,274,101 | ||
Charlotte-Mecklenburg, NC, Hospital Authority Health Care System Rev. (Carolinas Health Care System), “A”, 5%, 1/15/2040 | 3,000,000 | 3,072,665 | ||
Harris County, TX, Cultural Education Facilities Finance Corp., Hospital Rev. (Memorial Hermann Health System), “A”, 4.125%, 7/01/2052 | 2,480,000 | 2,379,325 | ||
New Hanover County, NC, Hospital Rev. (New Hanover Regional Medical Center), 5%, 10/01/2036 (Prerefunded 10/01/2027) | 1,500,000 | 1,626,542 | ||
New Hanover County, NC, Hospital Rev. (New Hanover Regional Medical Center), 5%, 10/01/2047 (Prerefunded 10/01/2027) | 2,425,000 | 2,629,576 | ||
New York Dormitory Authority Rev. (Norwell Health Obligated Group), “A”, 4.25%, 5/01/2052 | 4,685,000 | 4,685,118 | ||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Novant Health Obligated Group), “A”, 4%, 11/01/2052 | 5,000,000 | 4,759,382 | ||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Rex Healthcare), “A”, 5%, 7/01/2032 | 600,000 | 667,644 | ||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Rex Healthcare), “A”, 5%, 7/01/2033 | 255,000 | 283,357 | ||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Rex Healthcare), “A”, 4%, 7/01/2049 | 5,000,000 | 4,760,739 | ||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Vidant Health), 5%, 6/01/2031 (Prerefunded 6/01/2025) | 2,800,000 | 2,885,915 | ||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Vidant Health), 5%, 6/01/2033 (Prerefunded 6/01/2025) | 3,000,000 | 3,092,051 | ||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Vidant Health), 5%, 6/01/2045 | 2,500,000 | 2,519,668 | ||
North Carolina Medical Care Commission, Health Care Facilities Rev. (Wake Forest Baptist Obligated Group), “A”, 5%, 12/01/2033 | 1,000,000 | 1,092,994 | ||
Surry County, NC, Northern Hospital District, Health Care Facilities Rev., 5%, 10/01/2027 | 150,000 | 155,535 | ||
Surry County, NC, Northern Hospital District, Health Care Facilities Rev., 5%, 10/01/2035 | 1,515,000 | 1,546,378 | ||
Surry County, NC, Northern Hospital District, Health Care Facilities Rev., 5%, 10/01/2038 | 1,065,000 | 1,070,674 | ||
University of North Carolina, Hospitals at Chapel Hill Rev., 5%, 2/01/2046 | 6,500,000 | 6,676,022 | ||
$54,764,047 | ||||
Healthcare Revenue - Long Term Care – 6.9% | ||||
North Carolina Medical Care Commission, Health Care Facilities First Mortgage Rev. (Deerfield Episcopal Retirement Community), 5%, 11/01/2037 | $ | 2,750,000 | $2,827,425 | |
North Carolina Medical Care Commission, Health Care Facilities First Mortgage Rev. (Lutheran Services for the Aging), “C”, 4%, 3/01/2036 | 1,000,000 | 877,932 | ||
North Carolina Medical Care Commission, Health Care Facilities First Mortgage Rev. (Lutheran Services for the Aging), “C”, 4%, 3/01/2042 | 2,000,000 | 1,581,735 | ||
North Carolina Medical Care Commission, Health Care Facilities First Mortgage Rev. (Pennybyrn at Maryfield), 5%, 10/01/2035 | 1,500,000 | 1,446,927 | ||
North Carolina Medical Care Commission, Health Care Facilities First Mortgage Rev. (Presbyterian Homes Obligated Group), 5%, 10/01/2031 | 1,000,000 | 1,027,367 | ||
North Carolina Medical Care Commission, Health Care Facilities First Mortgage Rev. (Presbyterian Homes Obligated Group), 5%, 10/01/2036 | 800,000 | 819,086 | ||
North Carolina Medical Care Commission, Health Care Facilities First Mortgage Rev. (Presbyterian Homes Obligated Group), “A”, 5%, 10/01/2050 | 2,000,000 | 2,021,519 | ||
North Carolina Medical Care Commission, Retirement Facilities First Mortgage Refunding Rev. (Plantation Village, Inc.), “A”, 4%, 1/01/2052 | 3,000,000 | 2,266,928 | ||
North Carolina Medical Care Commission, Retirement Facilities First Mortgage Rev. (Aldersgate), 5%, 7/01/2045 | 1,000,000 | 780,317 | ||
North Carolina Medical Care Commission, Retirement Facilities First Mortgage Rev. (Aldersgate), “A”, 5%, 7/01/2047 | 1,000,000 | 766,311 |
2
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||
Municipal Bonds – continued | ||||
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 | $1,671,918 | |
North Carolina Medical Care Commission, Retirement Facilities First Mortgage Rev. (Forest at Duke Project), 4%, 9/01/2033 | 180,000 | 168,432 | ||
North Carolina Medical Care Commission, Retirement Facilities First Mortgage Rev. (Forest at Duke Project), 4%, 9/01/2034 | 185,000 | 171,728 | ||
North Carolina Medical Care Commission, Retirement Facilities First Mortgage Rev. (Forest at Duke Project), 4%, 9/01/2041 | 830,000 | 694,558 | ||
North Carolina Medical Care Commission, Retirement Facilities First Mortgage Rev. (Forest at Duke Project), 4%, 9/01/2046 | 715,000 | 570,671 | ||
North Carolina Medical Care Commission, Retirement Facilities First Mortgage Rev. (Forest at Duke Project), 4%, 9/01/2051 | 1,100,000 | 844,949 | ||
North Carolina Medical Care Commission, Retirement Facilities First Mortgage Rev. (Friends Homes, Inc.), “A”, 4%, 9/01/2040 | 2,000,000 | 1,663,768 | ||
North Carolina Medical Care Commission, Retirement Facilities First Mortgage Rev. (Galloway Ridge), “A”, 5%, 1/01/2039 | 1,225,000 | 1,123,124 | ||
North Carolina Medical Care Commission, Retirement Facilities First Mortgage Rev. (Pennybyrn at Maryfield Project), “A”, 5%, 10/01/2050 | 1,500,000 | 1,283,596 | ||
North Carolina Medical Care Commission, Retirement Facilities First Mortgage Rev. (Salemtowne Project), 5.25%, 10/01/2037 | 1,500,000 | 1,386,297 | ||
North Carolina Medical Care Commission, Retirement Facilities First Mortgage Rev. (Sharon Towers), “A”, 5%, 7/01/2049 | 2,000,000 | 1,701,295 | ||
North Carolina Medical Care Commission, Retirement Facilities First Mortgage Rev. (Southminster), 5%, 10/01/2031 | 800,000 | 786,339 | ||
North Carolina Medical Care Commission, Retirement Facilities First Mortgage Rev. (Southminster), 5%, 10/01/2037 | 2,200,000 | 2,044,502 | ||
North Carolina Medical Care Commission, Retirement Facilities First Mortgage Rev. (United Church Homes and Services), “A”, 5%, 9/01/2037 (Prerefunded 9/01/2024) | 1,500,000 | 1,519,374 | ||
North Carolina Medical Care Commission, Retirement Facilities First Mortgage Rev. (United Methodist Retirement Homes), “A”, 5%, 10/01/2035 | 1,000,000 | 1,007,056 | ||
$31,053,154 | ||||
Human Services – 0.2% | ||||
North Carolina Capital Facilities Finance Agency Rev. (Arc of North Carolina Projects), “A”, 5%, 10/01/2034 | $ | 1,000,000 | $987,660 | |
Industrial Revenue - Other – 0.2% | ||||
Port Beaumont, TX, Navigation District, Dock & Wharf Facility Rev. (Jefferson Gulf Coast Energy Project), “A”, 3.625%, 1/01/2035 (n) | $ | 600,000 | $494,999 | |
Port Beaumont, TX, Navigation District, Dock & Wharf Facility Rev. (Jefferson Gulf Coast Energy Project), “A”, 2.875%, 1/01/2041 (n) | 510,000 | 336,248 | ||
$831,247 | ||||
Miscellaneous Revenue - Other – 1.6% | ||||
Durham County, NC, Industrial Facilities & Pollution Control Financing Authority Rev. (Research Triangle Institute), 5%, 2/01/2025 | $ | 1,000,000 | $1,021,772 | |
Durham County, NC, Limited Obligation, “A”, 5%, 6/01/2041 | 1,000,000 | 1,150,742 | ||
Durham County, NC, Limited Obligation, “A”, 5%, 6/01/2042 | 1,000,000 | 1,140,511 | ||
Durham County, NC, Limited Obligation, “A”, 5%, 6/01/2043 | 875,000 | 994,520 | ||
Matching Fund Special Purpose Securitization Corp., “A”, 5%, 10/01/2026 | 190,000 | 192,191 | ||
New York Liberty Development Corp., Liberty Rev. (3 World Trade Center Project), “1”, 5%, 11/15/2044 (n) | 1,130,000 | 1,119,818 | ||
Pennsylvania Economic Development Financing Authority, Private Activity Rev. (PennDOT Major Bridges Package One Project), AGM, 5%, 12/31/2057 | 1,690,000 | 1,744,360 | ||
$7,363,914 | ||||
Multi-Family Housing Revenue – 0.8% | ||||
National Finance Authority, NH, Municipal Certificates, “1-A”, 4.375%, 9/20/2036 | $ | 1,308,808 | $1,321,891 | |
New Mexico Mortgage Finance Authority, Multifamily Housing Rev. (Mountain View II & III Apartments Project), HUD Section 8, 5%, 2/01/2042 (Put Date 9/01/2025) | 675,000 | 687,706 | ||
New Mexico Mortgage Finance Authority, Multifamily Housing Rev. (Santa Fe Apartment & Sangre de Cristo Project), HUD Section 8, 5%, 2/01/2042 (Put Date 6/01/2025) | 1,070,000 | 1,080,643 | ||
Puerto Rico Housing Finance Authority, Multi-Family Housing Collateralized Rev. (Mirador Las Casas Project), “B”, 5%, 3/01/2027 (Put Date 3/01/2026) | 240,000 | 249,841 | ||
$3,340,081 | ||||
Sales & Excise Tax Revenue – 3.1% | ||||
Guam Government Business Privilege Tax Refunding, “F”, 5%, 1/01/2030 | $ | 25,000 | $26,923 | |
Guam Government Business Privilege Tax Refunding, “F”, 5%, 1/01/2031 | 35,000 | 37,950 | ||
Guam Government Business Privilege Tax Refunding, “F”, 4%, 1/01/2042 | 350,000 | 335,061 | ||
Guam Government Business Privilege Tax Rev., “D”, 5%, 11/15/2031 | 1,295,000 | 1,319,447 | ||
Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., “2019A-1”, 4.55%, 7/01/2040 | 105,000 | 105,509 |
3
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||
Municipal Bonds – continued | ||||
Sales & Excise Tax Revenue – continued | ||||
Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., “2019A-1”, 4.75%, 7/01/2053 | $ | 336,000 | $332,523 | |
Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., “2019A-1”, 5%, 7/01/2058 | 7,015,000 | 7,039,478 | ||
Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., “2019A-2”, 4.329%, 7/01/2040 | 635,000 | 630,373 | ||
Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., “2019A-2”, 4.329%, 7/01/2040 | 348,000 | 345,464 | ||
Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., “2019A-2”, 4.536%, 7/01/2053 | 9,000 | 8,605 | ||
Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., “2019A-2”, 4.784%, 7/01/2058 | 154,000 | 151,796 | ||
Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., Capital Appreciation, “2019A-1”, 0%, 7/01/2024 | 7,000 | 6,863 | ||
Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., Capital Appreciation, “2019A-1”, 0%, 7/01/2027 | 174,000 | 151,449 | ||
Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., Capital Appreciation, “2019A-1”, 0%, 7/01/2029 | 31,000 | 24,790 | ||
Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., Capital Appreciation, “2019A-1”, 0%, 7/01/2031 | 1,584,000 | 1,159,290 | ||
Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., Capital Appreciation, “2019A-1”, 0%, 7/01/2033 | 1,515,000 | 1,009,087 | ||
Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., Capital Appreciation, “2019A-1”, 0%, 7/01/2046 | 718,000 | 225,110 | ||
Wisconsin Public Finance Authority Limited Obligation Grant Rev. (American Dream at Meadowlands Project), “A”, 6.25%, 8/01/2027 (a)(n) | 880,000 | 686,400 | ||
Wisconsin Public Finance Authority Limited Obligation Grant Rev., Taxable (American Dream at Meadowlands Project), ”A“, 5.625%, 8/01/2024 (a)(n) | 485,000 | 378,300 | ||
$13,974,418 | ||||
Secondary Schools – 0.1% | ||||
District of Columbia Rev. (Rocketship D.C.), “A”, 5%, 6/01/2056 (n) | $ | 430,000 | $372,687 | |
Single Family Housing - State – 8.4% | ||||
Connecticut Housing Finance Authority Rev. (Housing Mortgage Finance Program), “C-1”, 4%, 11/15/2047 | $ | 640,000 | $638,147 | |
North Carolina Housing Finance Agency, Home Ownership Refunding Rev., “45”, GNMA, 3%, 7/01/2051 | 2,085,000 | 2,031,259 | ||
North Carolina Housing Finance Agency, Home Ownership Rev., “41”, FNMA, 3.55%, 7/01/2044 | 1,285,000 | 1,199,012 | ||
North Carolina Housing Finance Agency, Home Ownership Rev., “43”, GNMA, 2.95%, 7/01/2043 | 2,740,000 | 2,306,342 | ||
North Carolina Housing Finance Agency, Home Ownership Rev., “44”, 4%, 7/01/2050 | 3,275,000 | 3,276,228 | ||
North Carolina Housing Finance Agency, Home Ownership Rev., “48”, 3.75%, 7/01/2052 | 3,260,000 | 3,234,726 | ||
North Carolina Housing Finance Agency, Home Ownership Rev., “49”, 4.875%, 7/01/2042 | 1,195,000 | 1,260,444 | ||
North Carolina Housing Finance Agency, Home Ownership Rev., “49”, GNMA, 5%, 7/01/2047 | 4,980,000 | 5,139,629 | ||
North Carolina Housing Finance Agency, Home Ownership Rev., “49”, GNMA, 6%, 7/01/2053 | 1,470,000 | 1,585,548 | ||
North Carolina Housing Finance Agency, Home Ownership Rev., “50”, GNMA, 5.5%, 1/01/2054 | 4,980,000 | 5,390,034 | ||
North Carolina Housing Finance Agency, Home Ownership Rev., “51”, 4.5%, 1/01/2048 | 3,000,000 | 3,014,754 | ||
North Carolina Housing Finance Agency, Home Ownership Rev., “51”, 5.75%, 1/01/2054 | 3,995,000 | 4,317,558 | ||
North Carolina Housing Finance Agency, Home Ownership Rev., “52-A”, GNMA, 6.25%, 1/01/2055 | 4,000,000 | 4,426,465 | ||
$37,820,146 | ||||
State & Local Agencies – 12.4% | ||||
Buncombe County, NC, Limited Obligation, 4%, 6/01/2034 | $ | 1,700,000 | $1,772,028 | |
Buncombe County, NC, Limited Obligation, 4%, 6/01/2035 | 1,465,000 | 1,520,560 | ||
Cabarrus County, NC, Limited Obligation, 4%, 6/01/2034 | 1,000,000 | 1,026,364 | ||
Charlotte, NC, Convention Facility Projects, COP, “A”, 4%, 6/01/2049 | 2,500,000 | 2,517,257 | ||
Charlotte, NC, COP, 5%, 12/01/2034 | 1,000,000 | 1,108,273 | ||
Charlotte, NC, COP, 5%, 12/01/2035 | 2,000,000 | 2,208,610 | ||
Charlotte, NC, COP, 3%, 6/01/2048 | 4,425,000 | 3,672,568 | ||
Charlotte, NC, NASCAR Hall of Fame Public Facilities, COP, “C”, 3%, 6/01/2039 | 3,000,000 | 2,740,926 | ||
Charlotte, NC, Refunding COP (Transit Projects Phase II), “B”, 5%, 6/01/2026 | 1,250,000 | 1,288,989 | ||
Chatham County, NC, Limited Obligation, 4%, 11/01/2037 | 1,750,000 | 1,791,924 | ||
Durham County, NC, Financing Corp. Limited Obligation, 4%, 10/01/2034 | 2,000,000 | 2,089,654 | ||
Durham County, NC, Financing Corp. Limited Obligation, 4%, 10/01/2035 | 1,240,000 | 1,288,722 | ||
Durham County, NC, Financing Corp. Limited Obligation, 4%, 10/01/2036 | 1,375,000 | 1,419,229 | ||
Durham County, NC, Limited Obligation, 4%, 4/01/2035 | 1,270,000 | 1,317,172 | ||
Durham County, NC, Limited Obligation, 4.5%, 10/01/2042 | 2,400,000 | 2,606,042 | ||
Durham County, NC, Limited Obligation, 4.5%, 10/01/2043 | 2,000,000 | 2,162,222 | ||
Mecklenburg County, NC, School General Obligation, 5%, 9/01/2024 | 1,250,000 | 1,268,123 | ||
Mooresville, NC, Limited Obligation, “A”, 3%, 10/01/2036 | 350,000 | 340,498 | ||
North Carolina Turnpike Authority, Triangle Expressway System Appropriation Refunding Rev., “A”, 4%, 1/01/2034 | 2,555,000 | 2,655,053 | ||
North Carolina Turnpike Authority, Triangle Expressway System Appropriation Rev., Capital Appreciation, 0%, 1/01/2043 | 3,500,000 | 1,616,266 | ||
North Carolina Turnpike Authority, Triangle Expressway System Appropriation Rev., Capital Appreciation, 0%, 1/01/2046 | 2,035,000 | 797,822 |
4
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||
Municipal Bonds – continued | ||||
State & Local Agencies – continued | ||||
Onslow County, NC, Limited Obligation, 4%, 12/01/2040 | $ | 500,000 | $521,795 | |
Onslow County, NC, Limited Obligation, 4%, 12/01/2041 | 1,035,000 | 1,071,298 | ||
Onslow County, NC, Limited Obligation, 4%, 12/01/2042 | 500,000 | 513,033 | ||
Onslow County, NC, Limited Obligation, 4%, 12/01/2043 | 425,000 | 434,612 | ||
Pennsylvania Public School Building Authority, School Lease Rev. (School District of Philadelphia Project), “A”, AGM, 5%, 6/01/2033 | 2,530,000 | 2,660,535 | ||
Scotland County, NC, Limited Obligation, 5%, 12/01/2033 | 210,000 | 229,521 | ||
Scotland County, NC, Limited Obligation, 5%, 12/01/2034 | 1,000,000 | 1,092,839 | ||
State of North Carolina, Limited Obligation, “A”, 5%, 5/01/2033 | 2,500,000 | 2,989,105 | ||
State of North Carolina, Limited Obligation, “A”, 5%, 5/01/2034 | 2,500,000 | 2,984,840 | ||
Wake County, NC, Limited Obligation, “A”, 5%, 4/01/2040 | 1,825,000 | 2,105,288 | ||
Wake County, NC, Limited Obligation, “A”, 5%, 4/01/2041 | 1,625,000 | 1,866,178 | ||
Wake County, NC, Limited Obligation, “B”, 5%, 4/01/2041 | 1,765,000 | 2,026,957 | ||
$55,704,303 | ||||
Student Loan Revenue – 2.0% | ||||
New Jersey Higher Education Student Assistance Authority, Senior Student Loan Rev., “B”, 4%, 12/01/2041 | $ | 2,305,000 | $2,276,211 | |
North Carolina Education Assistance Authority, Student Loan Rev., “A”, 5%, 6/01/2027 | 550,000 | 582,553 | ||
North Carolina Education Assistance Authority, Student Loan Rev., “A”, 5%, 6/01/2028 | 1,000,000 | 1,075,261 | ||
North Carolina Education Assistance Authority, Student Loan Rev., “A”, 5%, 6/01/2029 | 700,000 | 762,826 | ||
North Carolina Education Assistance Authority, Student Loan Rev., “A”, 3.125%, 6/01/2039 | 40,000 | 37,894 | ||
North Carolina Education Assistance Authority, Student Loan Rev., “A”, 5%, 6/01/2043 | 4,000,000 | 4,140,910 | ||
$8,875,655 | ||||
Tax - Other – 0.8% | ||||
Chicago, IL, Board of Education, Dedicated Capital Improvement Tax Bond, 5.75%, 4/01/2035 | $ | 1,920,000 | $2,020,085 | |
Chicago, IL, Board of Education, Dedicated Capital Improvement Tax Bond, 5%, 4/01/2045 | 285,000 | 297,414 | ||
Chicago, IL, Board of Education, Dedicated Capital Improvement Tax Bond, 5.75%, 4/01/2048 | 670,000 | 732,716 | ||
Wisconsin Public Finance Authority Limited Obligation PILOT Rev. (American Dream at Meadowlands Project), 7%, 12/01/2050 | 305,000 | 284,127 | ||
$3,334,342 | ||||
Tax Assessment – 0.2% | ||||
Mooresville, NC, Special Assessment Rev., 5.375%, 3/01/2040 (n) | $ | 1,000,000 | $940,138 | |
Tobacco – 0.8% | ||||
Buckeye, OH, Tobacco Settlement Financing Authority Senior Asset-Backed Refunding, 2020A-2, “1”, 4%, 6/01/2048 | $ | 1,455,000 | $1,343,781 | |
Buckeye, OH, Tobacco Settlement Financing Authority Senior Asset-Backed Refunding, 2020B-2, “2”, 5%, 6/01/2055 | 1,030,000 | 967,948 | ||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., Taxable, “B-1”, 3.85%, 6/01/2050 | 1,545,000 | 1,429,105 | ||
$3,740,834 | ||||
Toll Roads – 3.3% | ||||
North Carolina Turnpike Authority, Monroe Expressway Toll Rev., “A”, 5%, 7/01/2047 | $ | 2,000,000 | $2,037,055 | |
North Carolina Turnpike Authority, Triangle Expressway System Rev., 5%, 1/01/2040 | 2,000,000 | 2,099,162 | ||
North Carolina Turnpike Authority, Triangle Expressway System Rev., AGM, 5%, 1/01/2038 | 3,000,000 | 3,231,556 | ||
North Carolina Turnpike Authority, Triangle Expressway System Senior Lien Refunding Rev., AGM, 5%, 1/01/2036 | 1,975,000 | 2,160,423 | ||
North Carolina Turnpike Authority, Triangle Expressway System Senior Lien Rev., 5%, 1/01/2032 | 1,150,000 | 1,205,964 | ||
North Carolina Turnpike Authority, Triangle Expressway System Senior Lien Rev., AGM, 5%, 1/01/2039 | 2,600,000 | 2,717,662 | ||
Virginia Small Business Financing Authority Senior Lien Rev. (Elizabeth River Crossings Opco LLC Project), 3%, 1/01/2041 | 1,505,000 | 1,234,517 | ||
$14,686,339 | ||||
Transportation - Special Tax – 0.7% | ||||
Metropolitan Transportation Authority, NY, Refunding Rev. (Climate Bond Certified), “E”, 4%, 11/15/2045 | $ | 2,605,000 | $2,538,882 | |
New Jersey Transportation Trust Fund Authority, “A”, 5%, 12/15/2039 | 260,000 | 282,855 | ||
New Jersey Transportation Trust Fund Authority, “CC”, 5.5%, 6/15/2050 | 250,000 | 279,940 | ||
$3,101,677 |
5
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||
Municipal Bonds – continued | ||||
Universities - Colleges – 14.2% | ||||
Appalachian State University, Millennial Campus Rev. (End Zone Project), 5%, 5/01/2044 | $ | 3,000,000 | $3,172,063 | |
Elizabeth City, NC, State University General Rev., AGM, 5%, 4/01/2040 | 3,155,000 | 3,359,840 | ||
North Carolina Agricultural & Technical State University General Rev., 5%, 10/01/2048 | 2,000,000 | 2,204,928 | ||
North Carolina Agricultural & Technical State University General Rev., 5%, 10/01/2052 | 2,000,000 | 2,187,764 | ||
North Carolina Agricultural & Technical State University General Rev., “A”, 5%, 10/01/2035 | 3,075,000 | 3,157,281 | ||
North Carolina Capital Facilities Finance Agency Refunding Rev. (Duke University), “B”, 5%, 10/01/2044 | 4,955,000 | 5,127,038 | ||
North Carolina Capital Facilities Finance Agency Rev. (Duke University), “B”, ETM, 5%, 10/01/2055 (Prerefunded 10/01/2025) | 1,120,000 | 1,162,564 | ||
North Carolina Capital Facilities Finance Agency, Educational Facilities Rev. (Meredith College), 4%, 6/01/2034 | 1,370,000 | 1,383,535 | ||
North Carolina Central University Rev., 5%, 4/01/2044 | 3,265,000 | 3,397,078 | ||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (University of Sacred Heart), 4.375%, 10/01/2031 | 115,000 | 115,092 | ||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (University of Sacred Heart), 5%, 10/01/2042 | 140,000 | 140,272 | ||
Red River, TX, Education Finance Corp., Higher Education Rev. (Houston Baptist University Project), 5.5%, 10/01/2046 | 735,000 | 737,659 | ||
University of North Carolina Board of Governors Rev., 4%, 4/01/2049 | 5,000,000 | 4,745,494 | ||
University of North Carolina, Asheville, Rev., 4%, 6/01/2039 | 1,450,000 | 1,477,424 | ||
University of North Carolina, Charlotte, Rev., 5%, 4/01/2043 (Prerefunded 4/01/2024) | 1,715,000 | 1,723,511 | ||
University of North Carolina, Charlotte, Rev., “A”, 5%, 10/01/2038 | 1,110,000 | 1,223,954 | ||
University of North Carolina, Charlotte, Rev., “A”, 4%, 10/01/2045 | 4,415,000 | 4,424,931 | ||
University of North Carolina, Greensboro, Refunding Rev., 4%, 4/01/2036 | 1,750,000 | 1,800,644 | ||
University of North Carolina, Greensboro, Rev., 4%, 4/01/2034 | 1,000,000 | 1,035,008 | ||
University of North Carolina, Greensboro, Rev., 4%, 4/01/2035 | 1,000,000 | 1,031,302 | ||
University of North Carolina, Greensboro, Rev., 5%, 4/01/2039 | 2,000,000 | 2,007,705 | ||
University of North Carolina, School of Art General Rev., 4%, 2/01/2040 | 1,000,000 | 1,016,504 | ||
University of North Carolina, School of Art General Rev., 4%, 2/01/2045 | 2,825,000 | 2,830,078 | ||
University of North Carolina, Wilmington, Limited Obligation (Student Housing Projects), 5%, 6/01/2028 | 3,045,000 | 3,135,779 | ||
University of North Carolina, Wilmington, Limited Obligation (Student Housing Projects), 4%, 6/01/2032 | 500,000 | 509,966 | ||
University of North Carolina, Wilmington, Limited Obligation (Student Housing Projects), 4%, 6/01/2033 | 400,000 | 407,869 | ||
University of North Carolina, Wilmington, Limited Obligation (Student Housing Projects), 4%, 6/01/2034 | 500,000 | 509,577 | ||
Virginia College Building Authority, Educational Facilities Rev. (Marymount University Project), “B”, 5.25%, 7/01/2035 (n) | 195,000 | 195,776 | ||
Western Carolina University, NC, General Obligation Rev., 5%, 10/01/2043 | 3,700,000 | 3,924,689 | ||
Western Carolina University, NC, General Rev., “B”, 5%, 4/01/2034 | 1,300,000 | 1,480,968 | ||
Winston-Salem, NC, State University General Rev., AGM, 5%, 10/01/2042 | 2,470,000 | 2,636,120 | ||
Winston-Salem, NC, State University Student Housing Project Rev., 5%, 6/01/2029 | 1,550,000 | 1,556,216 | ||
$63,818,629 | ||||
Utilities - Municipal Owned – 0.6% | ||||
Greenville, NC, Utilities Commission Combined Enterprise System Rev., 5%, 8/01/2044 | $ | 300,000 | $324,958 | |
Puerto Rico Electric Power Authority Refunding Rev., “DDD”, 5%, 7/01/2020 (a)(d) | 40,000 | 10,400 | ||
Puerto Rico Electric Power Authority Refunding Rev., “DDD”, 5%, 7/01/2021 (a)(d) | 440,000 | 114,400 | ||
Puerto Rico Electric Power Authority Refunding Rev., “DDD”, 5%, 7/01/2022 (a)(d) | 720,000 | 187,200 | ||
Puerto Rico Electric Power Authority Refunding Rev., “VV”, NPFG, 5.25%, 7/01/2029 | 525,000 | 517,158 | ||
Puerto Rico Electric Power Authority Refunding Rev., “VV”, NPFG, 5.25%, 7/01/2030 | 425,000 | 418,125 | ||
Puerto Rico Electric Power Authority Refunding Rev., “VV”, NPFG, 5.25%, 7/01/2034 | 50,000 | 49,287 | ||
Puerto Rico Electric Power Authority Rev., “A”, 5%, 7/01/2029 (a)(d) | 1,125,000 | 292,500 | ||
Puerto Rico Electric Power Authority Rev., “A”, 5%, 7/01/2042 (a)(d) | 175,000 | 45,500 | ||
Puerto Rico Electric Power Authority Rev., “AAA”, 5.25%, 7/01/2021 (a)(d) | 85,000 | 22,100 | ||
Puerto Rico Electric Power Authority Rev., “AAA”, 5.25%, 7/01/2030 (a)(d) | 40,000 | 10,400 | ||
Puerto Rico Electric Power Authority Rev., “CCC”, 5.25%, 7/01/2027 (a)(d) | 415,000 | 107,900 | ||
Puerto Rico Electric Power Authority Rev., “TT”, 5%, 7/01/2021 (a)(d) | 195,000 | 50,700 | ||
Puerto Rico Electric Power Authority Rev., “TT”, 5%, 7/01/2023 (a)(d) | 190,000 | 49,400 | ||
Puerto Rico Electric Power Authority Rev., “TT”, 5%, 7/01/2027 (a)(d) | 35,000 | 9,100 | ||
Puerto Rico Electric Power Authority Rev., “TT”, 5%, 7/01/2037 (a)(d) | 585,000 | 152,100 | ||
Puerto Rico Electric Power Authority Rev., “WW”, 5.375%, 7/01/2022 (a)(d) | 35,000 | 9,100 | ||
Puerto Rico Electric Power Authority Rev., “WW”, 5.25%, 7/01/2025 (a)(d) | 80,000 | 20,800 | ||
Puerto Rico Electric Power Authority Rev., “ZZ”, 5%, 7/01/2018 (a)(d) | 265,000 | 68,900 | ||
Puerto Rico Electric Power Authority Rev., “ZZ”, 5.25%, 7/01/2023 (a)(d) | 305,000 | 79,300 | ||
Puerto Rico Electric Power Authority Rev., “ZZ”, 5.25%, 7/01/2024 (a)(d) | 95,000 | 24,700 | ||
Puerto Rico Electric Power Authority Rev., “ZZ”, 5.25%, 7/01/2026 (a)(d) | 300,000 | 78,000 |
6
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||
Municipal Bonds – continued | ||||
Utilities - Municipal Owned – continued | ||||
Puerto Rico Electric Power Authority Rev., Taxable, “EEE”, 6.05%, 7/01/2032 (a)(d) | $ | 240,000 | $58,200 | |
$2,700,228 | ||||
Utilities - Other – 3.3% | ||||
Black Belt Energy Gas District, AL, Gas Project Rev. (Project No. 8), “A”, 4%, 12/01/2052 (Put Date 12/01/2029) | $ | 1,090,000 | $1,074,427 | |
Black Belt Energy Gas District, AL, Gas Project Rev., “A”, 4%, 6/01/2051 (Put Date 12/01/2031) | 1,295,000 | 1,304,098 | ||
Black Belt Energy Gas District, AL, Gas Project Rev., “C-1”, 5.25%, 2/01/2053 (Put Date 6/01/2029) | 2,580,000 | 2,755,046 | ||
California Community Choice Financing Authority, Clean Energy Project Rev., “C”, 5.25%, 1/01/2054 (Put Date 10/01/2031) | 2,535,000 | 2,681,577 | ||
Patriots Energy Group Financing Agency, SC, Gas Supply Rev., “B-1”, 5.25%, 2/01/2054 (Put Date 3/01/2031) | 1,600,000 | 1,742,369 | ||
Southeast Alabama Energy Authority Commodity Supply Rev. (Project No. 5), “A”, 5.25%, 1/01/2054 (Put Date 7/01/2029) | 2,320,000 | 2,468,932 | ||
Tennergy Corp., TN, Gas Supply Rev., “A”, 5.5%, 10/01/2053 (Put Date 12/01/2030) | 1,445,000 | 1,542,389 | ||
Tennessee Energy Acquisition Corp., Gas Project Rev., “A”, 5.25%, 9/01/2026 | 1,290,000 | 1,331,366 | ||
$14,900,204 | ||||
Water & Sewer Utility Revenue – 9.6% | ||||
Brunswick, NC, Enterprise Systems Rev., 4.5%, 2/01/2049 | $ | 2,400,000 | $2,536,049 | |
Cape Fear Public Utility Authority, Water & Sewer System Rev., 5%, 6/01/2040 (Prerefunded 6/01/2024) | 1,250,000 | 1,260,611 | ||
Clayton, NC, Water & Sewer System Rev., 5%, 8/01/2045 | 2,500,000 | 2,775,964 | ||
Clayton, NC, Water & Sewer System Rev., 4%, 8/01/2047 | 2,500,000 | 2,519,892 | ||
Fayetteville, NC, Public Works Commission Rev., 4%, 3/01/2051 | 2,500,000 | 2,493,502 | ||
Greensboro, NC, Enterprise System Rev., 5.25%, 6/01/2047 | 1,000,000 | 1,135,127 | ||
Greensboro, NC, Enterprise System Rev., 5.25%, 6/01/2048 | 3,990,000 | 4,518,080 | ||
Greenville, NC, Utilities Commission, Combined Enterprise System Rev., 4%, 12/01/2039 | 380,000 | 403,168 | ||
Greenville, NC, Utilities Commission, Combined Enterprise System Rev., 4%, 12/01/2041 | 300,000 | 312,854 | ||
Greenville, NC, Utilities Commission, Combined Enterprise System Rev., 4.125%, 12/01/2043 | 510,000 | 530,662 | ||
Greenville, NC, Utilities Commission, Combined Enterprise System Rev., 5%, 12/01/2046 | 525,000 | 585,978 | ||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 7/01/2036 | 220,000 | 226,901 | ||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 7/01/2036 | 380,000 | 396,403 | ||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 7/01/2037 | 480,000 | 498,680 | ||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 7/01/2040 | 1,325,000 | 1,362,679 | ||
Guam Waterworks Authority Rev. (Water and Wastewater System), 5%, 1/01/2046 | 1,000,000 | 1,015,137 | ||
Guam Waterworks Authority Rev. (Water and Wastewater System), “A”, 5%, 1/01/2050 | 605,000 | 622,683 | ||
Johnston County, NC, Water & Sewer System Rev., 4%, 4/01/2048 | 4,000,000 | 4,056,958 | ||
Johnston County, NC, Water & Sewer System Rev., 4%, 4/01/2053 | 5,000,000 | 5,024,985 | ||
Lincoln County, NC, Enterprise System Rev., 3%, 8/01/2034 | 175,000 | 170,750 | ||
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 | 95,000 | 95,519 | ||
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 | 115,000 | 115,494 | ||
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 | 140,540 | ||
Oak Island, NC, Enterprise System Rev., AGM, 5%, 6/01/2025 | 2,010,000 | 2,067,446 | ||
Oak Island, NC, Enterprise System Rev., AGM, 5%, 6/01/2028 | 500,000 | 536,749 | ||
Oak Island, NC, Enterprise System Rev., AGM, 5%, 6/01/2029 | 1,400,000 | 1,440,310 | ||
Oak Island, NC, Enterprise System Rev., AGM, 5%, 6/01/2031 | 1,600,000 | 1,643,369 | ||
Texas Water Development Board State Water Implementation Rev., “A”, 5%, 10/15/2058 | 1,360,000 | 1,504,607 | ||
Union County, NC, Enterprise System Rev., 3%, 6/01/2046 | 2,500,000 | 2,088,493 | ||
Winston-Salem, NC, Water & Sewer Systems Rev., 4%, 6/01/2034 | 700,000 | 723,956 | ||
Winston-Salem, NC, Water & Sewer Systems Rev., 4%, 6/01/2035 | 500,000 | 515,209 | ||
$43,318,755 | ||||
Total Municipal Bonds | $433,766,015 | |||
Bonds – 0.3% | ||||
Consumer Services – 0.3% | ||||
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2025 (n) | $ | 786,000 | $727,299 | |
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2043 (n) | 1,607,340 | 511,283 | ||
Total Bonds | $1,238,582 |
7
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||
Contingent Value Instruments – 0.1% | ||||
General Obligations - General Purpose – 0.1% | ||||
Commonwealth of Puerto Rico, General Obligation Contingent Value Instrument, 11/01/2043 | $ | 823,204 | $448,646 | |
Investment Companies (h) – 2.0% | ||||
Money Market Funds – 2.0% | ||||
MFS Institutional Money Market Portfolio, 5.42% (v) | 9,269,023 | $9,270,877 | ||
Other Assets, Less Liabilities – 1.1% | 4,916,099 | |||
Net Assets – 100.0% | $449,640,219 |
(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 $9,270,877 and $435,453,243, 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 $5,762,948, representing 1.3% of net assets. | |||
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
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 |
ETM | Escrowed to Maturity |
FNMA | Federal National Mortgage Assn. |
GNMA | Government National Mortgage Assn. |
NPFG | National Public Finance Guarantee Corp. |
See attached supplemental information. For more information see notes to financial statements as disclosed in the most recent semiannual or annual report.
8
Supplemental Information
12/31/23 (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 December 31, 2023 in valuing the fund's assets and liabilities:
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
Municipal Bonds | $— | $434,214,661 | $— | $434,214,661 |
U.S. Corporate Bonds | — | 1,238,582 | — | 1,238,582 |
Mutual Funds | 9,270,877 | — | — | 9,270,877 |
Total | $9,270,877 | $435,453,243 | $— | $444,724,120 |
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 | $7,469,318 | $102,044,764 | $100,242,057 | $(570) | $(578) | $9,270,877 |
9
Supplemental Information (unaudited) – continued
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $260,871 | $— |
(3) Jurisdiction Weightings
Jurisdiction weighting percentages based on net assets, as of December 31, 2023, are as follows:
North Carolina | 76.6% |
Puerto Rico | 3.8% |
New York | 2.8% |
Illinois | 2.4% |
Alabama | 1.7% |
Texas | 1.4% |
California | 1.3% |
Guam | 1.3% |
Pennsylvania | 1.1% |
Virginia | 1.0% |
Maryland | 0.7% |
New Jersey | 0.6% |
Tennessee | 0.6% |
Ohio | 0.5% |
Georgia | 0.4% |
New Mexico | 0.4% |
South Carolina | 0.4% |
Michigan | 0.3% |
New Hampshire | 0.3% |
Wisconsin | 0.3% |
Connecticut | 0.1% |
Washington DC | 0.1% |
The jurisdiction weighting percentages include both accrued interest amounts and equivalent exposure from any derivatives holdings, if applicable.
10