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 811-04492
MFS SERIES TRUST X
(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: October 31*
Date of reporting period: October 31, 2022
*This Form N-CSR pertains only to the following series of the Registrant: MFS Emerging Markets Debt Local Currency Fund. Each remaining series of the Registrant has a fiscal year end other than October 31.
ITEM 1. REPORTS TO STOCKHOLDERS.
Item 1(a):
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back cover |
Sovereign Emerging Markets | 86.6% |
Government Securities Hedge (t) | 4.4% |
Other Government Entity-Emerging Markets Quasi Government | 3.8% |
Emerging Markets Corporate Bonds | 3.8% |
Developed Markets Corporate Bonds | 0.3% |
Brazil | 15.8% |
Mexico | 12.5% |
China | 9.2% |
South Africa | 8.8% |
Indonesia | 6.3% |
Thailand | 6.1% |
Malaysia | 6.0% |
United States | 5.9% |
Chile | 4.8% |
Other Countries | 24.6% |
AA | 3.9% |
A | 12.4% |
BBB | 27.4% |
BB | 24.9% |
B | 0.9% |
CC | 0.1% |
D | 0.1% |
Not Rated | 29.2% |
Cash & Cash Equivalents | 19.9% |
Other (q) | (18.8)% |
Mexican Peso | 11.1% |
Thailand Baht | 10.8% |
Brazilian Real | 10.7% |
Indonesian Rupiah | 9.9% |
United States Dollar | 9.5% |
Malaysian Ringgit | 8.9% |
South African Rand | 8.8% |
Chinese Renminbi | 6.7% |
Polish Zloty | 4.7% |
Other Currencies | 18.9% |
Average Duration (d) | 5.3 |
Average Effective Maturity (m) | 8.1 yrs. |
(a) | For all securities other than those specifically described below, ratings are assigned to underlying securities utilizing ratings from Moody’s, Fitch, and Standard & Poor’s rating agencies and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. If none of the 3 rating agencies above assign a rating, but the security is rated by DBRS Morningstar, then the DBRS Morningstar rating is assigned. If none of the 4 rating agencies listed above rate the security, but the security is rated by the Kroll Bond Rating Agency (KBRA), then the KBRA rating 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 and fixed income derivatives that have not been rated by any rating agency. Non-Fixed Income includes equity securities (including convertible bonds and equity derivatives), ETFs, and/or commodity-linked derivatives. 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. The Average Duration calculation reflects the impact of the equivalent exposure of derivative positions, if any. |
(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 each 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. |
(p) | For purposes of the presentation of Portfolio structure at value, Other includes equivalent exposure from currency derivatives and may be negative. |
(q) | For purposes of this presentation, Other includes equivalent exposure from currency derivatives and/or any offsets to derivative positions and may be negative. |
(t) | For the purpose of managing the fund’s duration (but not its credit exposure), the fund holds futures contracts and USD swap agreements with a bond equivalent exposure of 4.1%. |
(v) | For purposes of this presentation, market value of fixed income and/or equity derivatives, if any, is included in Cash & Cash Equivalents. |
(x) | Represents the portfolio’s exposure to issuer countries as a percentage of a portfolio’s net assets. For purposes of this presentation, United States includes Cash & Cash Equivalents and Other. |
(y) | Represents the portfolio’s exposure to a particular currency as a percentage of a portfolio's net assets. For purposes of this presentation, United States Dollar includes Cash & Cash Equivalents. |
(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. |
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr | Life (t) |
A | 9/15/11 | (17.29)% | (2.53)% | (2.38)% | N/A |
B | 9/15/11 | (17.89)% | (3.25)% | (3.11)% | N/A |
C | 9/15/11 | (17.76)% | (3.25)% | (3.11)% | N/A |
I | 9/15/11 | (17.15)% | (2.33)% | (2.19)% | N/A |
R1 | 9/15/11 | (17.79)% | (3.16)% | (3.05)% | N/A |
R2 | 9/15/11 | (17.47)% | (2.76)% | (2.62)% | N/A |
R3 | 9/15/11 | (17.22)% | (2.53)% | (2.35)% | N/A |
R4 | 9/15/11 | (16.98)% | (2.19)% | (2.09)% | N/A |
R6 | 12/03/12 | (16.83)% | (2.18)% | N/A | (2.17)% |
JPMorgan Government Bond Index Emerging Markets Global Diversified (f) | (20.27)% | (3.54)% | (2.56)% | N/A |
A With Initial Sales Charge (4.25%) | (20.81)% | (3.37)% | (2.81)% | N/A |
B With CDSC (Declining over six years from 4% to 0%) (v) | (21.05)% | (3.57)% | (3.11)% | N/A |
C With CDSC (1% for 12 months) (v) | (18.55)% | (3.25)% | (3.11)% | N/A |
(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. |
May 1, 2022 through October 31, 2022
Share Class | Annualized Expense Ratio | Beginning Account Value 5/01/22 | Ending Account Value 10/31/22 | Expenses Paid During Period (p) 5/01/22-10/31/22 | |
A | Actual | 1.10% | $1,000.00 | $919.87 | $5.32 |
Hypothetical (h) | 1.10% | $1,000.00 | $1,019.66 | $5.60 | |
B | Actual | 1.85% | $1,000.00 | $916.56 | $8.94 |
Hypothetical (h) | 1.85% | $1,000.00 | $1,015.88 | $9.40 | |
C | Actual | 1.85% | $1,000.00 | $916.54 | $8.94 |
Hypothetical (h) | 1.85% | $1,000.00 | $1,015.88 | $9.40 | |
I | Actual | 0.85% | $1,000.00 | $918.97 | $4.11 |
Hypothetical (h) | 0.85% | $1,000.00 | $1,020.92 | $4.33 | |
R1 | Actual | 1.85% | $1,000.00 | $917.11 | $8.94 |
Hypothetical (h) | 1.85% | $1,000.00 | $1,015.88 | $9.40 | |
R2 | Actual | 1.35% | $1,000.00 | $918.90 | $6.53 |
Hypothetical (h) | 1.35% | $1,000.00 | $1,018.40 | $6.87 | |
R3 | Actual | 1.10% | $1,000.00 | $920.24 | $5.32 |
Hypothetical (h) | 1.10% | $1,000.00 | $1,019.66 | $5.60 | |
R4 | Actual | 0.85% | $1,000.00 | $921.61 | $4.12 |
Hypothetical (h) | 0.85% | $1,000.00 | $1,020.92 | $4.33 | |
R6 | Actual | 0.76% | $1,000.00 | $921.67 | $3.68 |
Hypothetical (h) | 0.76% | $1,000.00 | $1,021.37 | $3.87 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
Issuer | Shares/Par | Value ($) | ||
Bonds – 78.9% | ||||
Bermuda – 0.3% | ||||
Government of Bermuda, 5%, 7/15/2032 (n) | $ | 1,409,000 | $1,305,489 | |
Brazil – 10.2% | ||||
Federative Republic of Brazil, 0%, 1/01/2024 | BRL | 72,487,000 | $12,188,453 | |
Federative Republic of Brazil, 10%, 1/01/2025 | 99,537,000 | 18,633,295 | ||
Federative Republic of Brazil, 10%, 1/01/2027 | 65,169,000 | 11,942,408 | ||
$42,764,156 | ||||
Chile – 4.7% | ||||
AES Gener S.A., 6.35% to 4/07/2025, FLR (CMT - 5yr. + 4.917%) to 4/07/2030, FLR (CMT - 5yr. + 5.167%) to 4/07/2045, FLR (CMT - 5yr. + 5.917%) to 10/07/2079 (n) | $ | 936,000 | $760,457 | |
Republic of Chile, 2.3%, 10/01/2028 (n) | CLP | 5,215,000,000 | 4,354,868 | |
Republic of Chile, 5%, 10/01/2028 (n) | 6,375,000,000 | 6,213,243 | ||
Republic of Chile, 4.7%, 9/01/2030 | 6,645,000,000 | 6,255,168 | ||
Republic of Chile, 7%, 5/01/2034 | 2,040,000,000 | 2,234,045 | ||
$19,817,781 | ||||
China – 6.6% | ||||
China Development Bank, 3.45%, 9/20/2029 | CNY | 84,810,000 | $12,082,585 | |
People's Republic of China, 2.75%, 2/17/2032 | 59,650,000 | 8,189,299 | ||
Republic of China, 3.25%, 6/06/2026 | 53,270,000 | 7,535,866 | ||
$27,807,750 | ||||
Colombia – 4.1% | ||||
Empresas Publicas de Medellin E.S.P., 8.375%, 11/08/2027 (n) | COP | 4,009,000,000 | $576,870 | |
Republic of Colombia, 7.5%, 8/26/2026 | 21,450,800,000 | 3,589,269 | ||
Republic of Colombia, 5.75%, 11/03/2027 | 76,766,000,000 | 11,252,008 | ||
Republic of Colombia, “B”, 7.75%, 9/18/2030 | 12,650,000,000 | 1,831,164 | ||
$17,249,311 | ||||
Czech Republic – 4.1% | ||||
Czech Republic, 2.75%, 7/23/2029 | CZK | 59,400,000 | $1,963,768 | |
Czech Republic, 2%, 10/13/2033 | 519,860,000 | 14,427,962 | ||
PPF Telecom Group B.V., 3.25%, 9/29/2027 | EUR | 1,000,000 | 849,401 | |
$17,241,131 | ||||
Egypt – 0.2% | ||||
Energean PLC, 6.5%, 4/30/2027 (n) | $ | 1,114,000 | $984,197 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Guatemala – 0.6% | ||||
Banco Industrial S.A., 4.875% to 1/29/2026, FLR (CMT - 5yr. + 4.442%) to 1/29/2031 (n) | $ | 1,064,000 | $947,004 | |
Central America Bottling Co., 5.25%, 4/27/2029 (n) | 1,245,000 | 1,095,142 | ||
Investment Energy Resources Ltd., 6.25%, 4/26/2029 (n) | 797,000 | 670,604 | ||
$2,712,750 | ||||
Hungary – 2.3% | ||||
Republic of Hungary, 3%, 10/27/2027 | HUF | 1,635,400,000 | $2,715,220 | |
Republic of Hungary, 2.25%, 4/20/2033 | 5,444,230,000 | 6,732,553 | ||
$9,447,773 | ||||
India – 0.6% | ||||
JSW Infrastructure Ltd., 4.95%, 1/21/2029 (n) | $ | 794,000 | $590,588 | |
Shriram Transport Finance Co. Ltd., 5.1%, 7/16/2023 | 384,000 | 374,185 | ||
Shriram Transport Finance Co. Ltd., 4.4%, 3/13/2024 (n) | 1,720,000 | 1,601,268 | ||
$2,566,041 | ||||
Indonesia – 6.2% | ||||
Medco Laurel Tree Pte. Ltd., 6.95%, 11/12/2028 (n) | $ | 756,000 | $579,872 | |
Republic of Indonesia, 9%, 3/15/2029 | IDR | 36,679,000,000 | 2,533,890 | |
Republic of Indonesia, 7%, 9/15/2030 | 115,476,000,000 | 7,169,618 | ||
Republic of Indonesia, 6.375%, 4/15/2032 | 9,995,000,000 | 591,152 | ||
Republic of Indonesia, 7.5%, 8/15/2032 | 96,643,000,000 | 6,154,357 | ||
Republic of Indonesia, 4.65%, 9/20/2032 | $ | 1,198,000 | 1,107,719 | |
Republic of Indonesia, 7.5%, 5/15/2038 | IDR | 71,483,000,000 | 4,545,398 | |
Republic of Indonesia, 8.375%, 4/15/2039 | 32,266,000,000 | 2,184,924 | ||
Republic of Indonesia, 7.125%, 6/15/2042 | 19,893,000,000 | 1,210,964 | ||
$26,077,894 | ||||
Israel – 0.3% | ||||
Energean Israel Finance Ltd., 4.875%, 3/30/2026 | $ | 1,250,000 | $1,121,875 | |
Malaysia – 4.2% | ||||
Government of Malaysia, 3.733%, 6/15/2028 | MYR | 9,985,000 | $2,045,438 | |
Government of Malaysia, 4.232%, 6/30/2031 | 31,439,000 | 6,516,206 | ||
Government of Malaysia, 3.582%, 7/15/2032 | 16,125,000 | 3,199,660 | ||
Government of Malaysia, 3.757%, 5/22/2040 | 10,520,000 | 1,920,749 | ||
Government of Malaysia, 4.065%, 6/15/2050 | 20,945,000 | 3,831,012 | ||
$17,513,065 | ||||
Mexico – 8.7% | ||||
Electricidad Firme de Mexico, 4.9%, 11/20/2026 (n) | $ | 1,096,000 | $871,354 | |
Grupo Axo S.A.P.I. de C.V., 5.75%, 6/08/2026 (n) | 764,000 | 606,028 | ||
Grupo Axo S.A.P.I. de C.V., 5.75%, 6/08/2026 | 400,000 | 317,292 | ||
Petroleos Mexicanos, 7.47%, 11/12/2026 | MXN | 10,559,900 | 443,534 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Mexico – continued | ||||
Red de Carreteras de Occidente SAPIB de C.V., 9%, 6/10/2028 (z) | MXN | 11,784,000 | $587,283 | |
United Mexican States, 10%, 12/05/2024 | 23,970,000 | 1,204,163 | ||
United Mexican States, 5.75%, 3/05/2026 | 70,850,000 | 3,152,811 | ||
United Mexican States, 7.5%, 6/03/2027 | 54,300,000 | 2,507,511 | ||
United Mexican States, 8.5%, 5/31/2029 | 261,270,000 | 12,341,413 | ||
United Mexican States, 7.75%, 5/29/2031 | 149,500,000 | 6,641,351 | ||
United Mexican States, 8%, 11/07/2047 | 194,800,000 | 8,044,670 | ||
$36,717,410 | ||||
Peru – 3.4% | ||||
Banco de Credito del Peru, 4.65%, 9/17/2024 (z) | PEN | 10,403,000 | $2,423,888 | |
Peru LNG, 5.375%, 3/22/2030 | $ | 1,360,000 | 1,069,368 | |
Republic of Peru, 6.95%, 8/12/2031 | PEN | 17,840,000 | 4,114,598 | |
Republic of Peru, 6.9%, 8/12/2037 | 27,002,000 | 5,814,348 | ||
San Miguel Industrias PET S.A., 3.5%, 8/02/2028 (n) | $ | 945,000 | 756,418 | |
$14,178,620 | ||||
Poland – 4.7% | ||||
Can-Pack S.A./Eastern PA Land Investment Holding LLC, 3.875%, 11/15/2029 (n) | $ | 1,113,000 | $883,444 | |
Republic of Poland, 2.75%, 4/25/2028 | PLN | 5,206,000 | 833,117 | |
Republic of Poland, 1.25%, 10/25/2030 | 49,103,000 | 6,136,409 | ||
Republic of Poland, 1.75%, 4/25/2032 | 91,788,000 | 11,105,077 | ||
Synthos S.A., 2.5%, 6/07/2028 (n) | EUR | 921,000 | 683,453 | |
$19,641,500 | ||||
Romania – 2.4% | ||||
Republic of Romania, 4.75%, 2/24/2025 | RON | 56,000,000 | $10,267,512 | |
Russia – 0.5% | ||||
Russian Federation, 7.75%, 9/16/2026 (a)(u) | RUB | 354,632,000 | $2,036,062 | |
South Africa – 8.6% | ||||
Eskom Holdings SOC Ltd. (Republic of South Africa), 7.85%, 4/02/2026 | ZAR | 36,000,000 | $1,843,025 | |
Republic of South Africa, 10.5%, 12/21/2026 | 18,488,000 | 1,049,671 | ||
Republic of South Africa, 8%, 1/31/2030 | 331,754,000 | 15,485,315 | ||
Republic of South Africa, 7%, 2/28/2031 | 78,800,000 | 3,322,094 | ||
Republic of South Africa, 8.875%, 2/28/2035 | 123,727,000 | 5,488,276 | ||
Republic of South Africa, 9%, 1/31/2040 | 182,916,000 | 7,837,941 | ||
Transnet SOC Ltd. (Republic of South Africa), 13.5%, 4/18/2028 | 14,800,000 | 885,200 | ||
$35,911,522 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Sri Lanka – 0.1% | ||||
Republic of Sri Lanka, 6.75%, 4/18/2028 (a) | $ | 1,400,000 | $308,441 | |
Republic of Sri Lanka, 7.85%, 3/14/2029 (a)(n) | 972,000 | 215,124 | ||
$523,565 | ||||
Thailand – 4.9% | ||||
Kingdom of Thailand, 3.775%, 6/25/2032 | THB | 461,410,000 | $12,660,367 | |
Kingdom of Thailand, 1.6%, 6/17/2035 | 100,242,000 | 2,092,710 | ||
Kingdom of Thailand, 3.3%, 6/17/2038 | 84,884,000 | 2,085,603 | ||
Kingdom of Thailand, 2%, 6/17/2042 | 192,332,000 | 3,713,518 | ||
$20,552,198 | ||||
Uruguay – 1.2% | ||||
Oriental Republic of Uruguay, 8.5%, 3/15/2028 | UYU | 218,912,000 | $4,755,178 | |
Oriental Republic of Uruguay, 8.25%, 5/21/2031 | 6,802,000 | 138,616 | ||
$4,893,794 | ||||
Total Bonds (Identified Cost, $397,493,832) | $331,331,396 | |||
Investment Companies (h) – 18.1% | ||||
Money Market Funds – 18.1% | ||||
MFS Institutional Money Market Portfolio, 3.02% (v) (Identified Cost, $75,800,369) | 75,804,189 | $75,804,189 | ||
Other Assets, Less Liabilities – 3.0% | 12,614,086 | |||
Net Assets – 100.0% | $419,749,671 |
(a) | Non-income producing security. |
(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 $75,804,189 and $331,331,396, 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 $23,695,423, representing 5.6% of net assets. |
(u) | The security was valued using significant unobservable inputs and is considered level 3 under the fair value hierarchy. For further information about the fund’s level 3 holdings, please see Note 2 in the Notes to Financial Statements. |
(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. |
(z) | Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. The fund holds the following restricted securities: |
Restricted Securities | Acquisition Date | Cost | Value |
Banco de Credito del Peru, 4.65%, 9/17/2024 | 9/12/19 | $3,112,248 | $2,423,888 |
Red de Carreteras de Occidente SAPIB de C.V., 9%, 6/10/2028 | 12/10/14 | 798,478 | 587,283 |
Total Restricted Securities | $3,011,171 | ||
% of Net assets | 0.7% |
The following abbreviations are used in this report and are defined: | |
BZDIOVRA | Brazil Interbank Deposit Rate |
CMT | Constant Maturity Treasury |
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. All reference rates are USD unless otherwise noted. |
KLIBOR | Kuala Lumpur Interbank Offered Rate |
THBFIX | Thai Baht Floating Rate Fixed |
TIIE | Interbank Equilibrium Interest Rate |
USA-CPI-U | Consumer Price Index - Urban Consumers |
Abbreviations indicate amounts shown in currencies other than the U.S. dollar. All amounts are stated in U.S. dollars unless otherwise indicated. A list of abbreviations is shown below: | |
AUD | Australian Dollar |
BRL | Brazilian Real |
CAD | Canadian Dollar |
CLP | Chilean Peso |
CNH | Chinese Yuan Renminbi (Offshore) |
CNY | China Yuan Renminbi |
COP | Colombian Peso |
CZK | Czech Koruna |
EUR | Euro |
HUF | Hungarian Forint |
IDR | Indonesian Rupiah |
KRW | South Korean Won |
MXN | Mexican Peso |
MYR | Malaysian Ringgit |
PEN | Peruvian Nuevo Sol |
PHP | Philippine Peso |
PLN | Polish Zloty |
RON | Romanian New Leu |
RUB | Russian Ruble |
SGD | Singapore Dollar |
THB | Thai Baht |
TRY | Turkish Lira |
TWD | Taiwan Dollar |
UYU | Uruguayan Peso |
ZAR | South African Rand |
Forward Foreign Currency Exchange Contracts | ||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||
Asset Derivatives | ||||||
BRL | 35,289,000 | USD | 6,682,890 | Banco Santander S.A. | 11/03/2022 | $148,782 |
BRL | 10,079,411 | USD | 1,862,779 | Citibank N.A. | 11/03/2022 | 88,516 |
BRL | 10,077,356 | USD | 1,906,925 | Goldman Sachs International | 11/03/2022 | 43,971 |
BRL | 17,048,531 | USD | 3,152,815 | JPMorgan Chase Bank N.A. | 2/02/2023 | 84,269 |
BRL | 47,866,724 | USD | 9,107,769 | JPMorgan Chase Bank N.A. | 11/03/2022 | 158,850 |
CZK | 10,700,097 | USD | 423,221 | Brown Brothers Harriman | 1/20/2023 | 6,763 |
EUR | 4,927,532 | USD | 4,851,583 | Morgan Stanley Capital Services, Inc. | 1/20/2023 | 50,565 |
HUF | 713,706,084 | USD | 1,653,378 | Goldman Sachs International | 1/20/2023 | 30,345 |
HUF | 95,190,536 | USD | 218,003 | UBS AG | 1/20/2023 | 6,564 |
KRW | 9,047,705,473 | USD | 6,332,824 | Citibank N.A. | 11/07/2022 | 18,544 |
MXN | 242,085,794 | USD | 11,894,377 | BNP Paribas S.A. | 1/20/2023 | 152,312 |
MYR | 2,149,187 | USD | 454,402 | Barclays Bank PLC | 11/28/2022 | 531 |
PLN | 3,256,126 | USD | 652,426 | HSBC Bank | 1/20/2023 | 19,666 |
RON | 23,002,895 | USD | 4,519,810 | JPMorgan Chase Bank N.A. | 1/20/2023 | 74,870 |
SGD | 12,007,876 | USD | 8,431,729 | State Street Bank Corp. | 1/20/2023 | 56,162 |
TRY | 65,842,279 | USD | 3,253,560 | Goldman Sachs International | 1/20/2023 | 66,482 |
USD | 2,443,576 | CNH | 17,500,649 | JPMorgan Chase Bank N.A. | 1/20/2023 | 46,595 |
USD | 414,906 | CNH | 2,969,387 | State Street Bank Corp. | 1/20/2023 | 8,203 |
USD | 5,145,305 | COP | 25,326,219,135 | Goldman Sachs International | 11/25/2022 | 38,092 |
USD | 811,319 | IDR | 12,423,975,376 | Barclays Bank PLC | 11/09/2022 | 14,865 |
USD | 4,376,671 | KRW | 5,734,104,311 | Barclays Bank PLC | 11/07/2022 | 351,406 |
USD | 2,560,347 | KRW | 3,313,601,162 | Citibank N.A. | 11/07/2022 | 234,243 |
USD | 2,984,624 | MYR | 13,452,766 | Barclays Bank PLC | 11/28/2022 | 136,981 |
USD | 5,014,021 | PEN | 19,861,538 | Citibank N.A. | 11/07/2022 | 29,294 |
USD | 8,916,327 | TWD | 274,280,218 | Merrill Lynch International | 11/08/2022 | 401,017 |
USD | 236,777 | ZAR | 4,350,885 | Citibank N.A. | 1/20/2023 | 1,312 |
$2,269,200 | ||||||
Liability Derivatives | ||||||
CLP | 276,405,093 | USD | 296,299 | Morgan Stanley Capital Services, Inc. | 11/08/2022 | $(3,504) |
CNH | 29,569,000 | USD | 4,093,813 | Barclays Bank PLC | 1/20/2023 | (43,887) |
CZK | 23,156,260 | USD | 931,370 | Goldman Sachs International | 1/20/2023 | (836) |
EUR | 1,854,634 | USD | 1,871,552 | HSBC Bank | 1/20/2023 | (26,472) |
IDR | 252,132,283,568 | USD | 16,865,723 | Barclays Bank PLC | 11/09/2022 | (702,465) |
IDR | 32,343,268,670 | USD | 2,123,098 | JPMorgan Chase Bank N.A. | 11/09/2022 | (49,692) |
MYR | 104,971,840 | USD | 23,485,136 | Barclays Bank PLC | 11/28/2022 | (1,264,998) |
PEN | 3,147,206 | USD | 809,050 | Banco Santander S.A. | 11/07/2022 | (19,184) |
Forward Foreign Currency Exchange Contracts - continued | ||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||
Liability Derivatives - continued | ||||||
PEN | 1,293,324 | USD | 332,120 | Goldman Sachs International | 11/07/2022 | $(7,529) |
PHP | 28,667,590 | USD | 503,444 | Citibank N.A. | 11/22/2022 | (8,896) |
PLN | 3,931,427 | USD | 817,268 | HSBC Bank | 1/20/2023 | (5,788) |
SGD | 2,909,364 | USD | 2,072,582 | Citibank N.A. | 1/20/2023 | (16,068) |
SGD | 2,584,549 | USD | 1,835,930 | HSBC Bank | 1/20/2023 | (9,015) |
THB | 973,376,499 | USD | 26,028,654 | JPMorgan Chase Bank N.A. | 1/11/2023 | (286,126) |
USD | 8,133,809 | AUD | 13,047,286 | State Street Bank Corp. | 1/20/2023 | (234,381) |
USD | 6,712,764 | BRL | 35,289,000 | Banco Santander S.A. | 11/03/2022 | (118,908) |
USD | 1,306,644 | BRL | 6,998,060 | Citibank N.A. | 2/02/2023 | (22,110) |
USD | 1,917,331 | BRL | 10,079,411 | Citibank N.A. | 11/03/2022 | (33,963) |
USD | 1,871,172 | BRL | 10,077,356 | Goldman Sachs International | 11/03/2022 | (79,725) |
USD | 9,074,488 | BRL | 47,866,723 | JPMorgan Chase Bank N.A. | 11/03/2022 | (192,132) |
USD | 7,410,861 | CAD | 10,187,736 | Morgan Stanley Capital Services, Inc. | 1/20/2023 | (75,342) |
USD | 2,122,654 | CLP | 2,108,857,000 | Barclays Bank PLC | 11/08/2022 | (111,245) |
USD | 4,804,647 | CLP | 4,608,669,701 | Citibank N.A. | 11/08/2022 | (77,289) |
USD | 214,012 | CZK | 5,373,837 | Deutsche Bank AG | 1/20/2023 | (1,936) |
USD | 664,530 | IDR | 10,396,435,080 | Citibank N.A. | 11/09/2022 | (1,947) |
USD | 6,348,911 | KRW | 9,047,705,473 | Citibank N.A. | 2/02/2023 | (20,694) |
USD | 693,584 | MXN | 13,957,280 | Goldman Sachs International | 1/20/2023 | (959) |
USD | 410,967 | RON | 2,086,315 | Goldman Sachs International | 1/20/2023 | (5,760) |
USD | 867,841 | RON | 4,423,934 | Morgan Stanley Capital Services, Inc. | 1/20/2023 | (15,811) |
USD | 658,406 | THB | 24,914,094 | JPMorgan Chase Bank N.A. | 1/11/2023 | (487) |
$(3,437,149) |
Futures Contracts | ||||||
Description | Long/ Short | Currency | Contracts | Notional Amount | Expiration Date | Value/Unrealized Appreciation (Depreciation) |
Asset Derivatives | ||||||
Interest Rate Futures | ||||||
Euro-Bund 10 yr | Short | EUR | 19 | $2,599,452 | December – 2022 | $49,384 |
Liability Derivatives | ||||||
Interest Rate Futures | ||||||
U.S. Treasury Ultra Note 10 yr | Long | USD | 110 | $12,758,281 | December – 2022 | $(1,042,782) |
Cleared Swap Agreements | ||||||||||
Maturity Date | Notional Amount | Counterparty | Cash Flows to Receive/ Frequency | Cash Flows to Pay/ Frequency | Unrealized Appreciation (Depreciation) | Net Unamortized Upfront Payments (Receipts) | Value | |||
Asset Derivatives | ||||||||||
Interest Rate Swaps | ||||||||||
3/16/27 | CNY | 30,000,000 | centrally cleared | 2.43% / Quarterly | 1 week CNY-Fixing Repo / Quarterly | $16,579 | $— | $16,579 | ||
4/13/32 | USD | 2,916,000 | centrally cleared | 3.116% / At Maturity | USA-CPI-U / At Maturity | 11,630 | — | 11,630 | ||
$28,209 | $— | $28,209 | ||||||||
Liability Derivatives | ||||||||||
Interest Rate Swaps | ||||||||||
1/02/24 | BRL | 26,455,000 | centrally cleared | 7.24% / At Maturity | Daily BZDIOVRA / Daily | $(424,791) | $— | $(424,791) | ||
1/02/24 | BRL | 30,350,000 | centrally cleared | 11.545% / At Maturity | Daily BZDIOVRA / Daily | (107,158) | — | (107,158) | ||
1/02/24 | BRL | 38,149,000 | centrally cleared | 12.09% / At Maturity | Daily BZDIOVRA / Daily | (85,330) | — | (85,330) | ||
1/02/24 | BRL | 51,356,000 | centrally cleared | 12.045% / At Maturity | Daily BZDIOVRA / Daily | (121,155) | — | (121,155) | ||
8/17/27 | CNY | 48,000,000 | centrally cleared | 2.26% / Quarterly | 1 week CNY-Fixing Repo / Quarterly | (34,690) | — | (34,690) | ||
3/28/25 | MXN | 36,098,000 | centrally cleared | 6.24% / 28 Days | 28 day TIIE / 28 days | (143,903) | — | (143,903) | ||
4/09/25 | MXN | 144,884,000 | centrally cleared | 6.27% / 28 Days | 28 day TIIE / 28 days | (568,505) | — | (568,505) | ||
4/11/25 | MXN | 73,866,000 | centrally cleared | 5.98% / 28 Days | 28 day TIIE / 28 days | (313,061) | — | (313,061) | ||
6/18/27 | MXN | 52,000,000 | centrally cleared | 8.98% / 28 Days | 28 day TIIE / 28 days | (34,046) | — | (34,046) | ||
7/27/32 | THB | 200,000,000 | centrally cleared | 2.47% / Quarterly | 6-Month THBFIX / Semi-annually | (276,800) | — | (276,800) | ||
5/12/32 | USD | 4,177,000 | centrally cleared | 2.921% / At Maturity | USA-CPI-U / At Maturity | (34,358) | — | (34,358) | ||
$(2,143,797) | $— | $(2,143,797) |
Uncleared Swap Agreements | ||||||||||
Maturity Date | Notional Amount | Counterparty | Cash Flows to Receive/ Frequency | Cash Flows to Pay/ Frequency | Unrealized Appreciation (Depreciation) | Net Unamortized Upfront Payments (Receipts) | Value | |||
Liability Derivatives | ||||||||||
Interest Rate Swaps | ||||||||||
7/07/27 | MYR | 36,564,000 | JPMorgan Chase Bank N.A. | 3.65% / Quarterly | 3-Month KLIBOR / Quarterly | $(168,829) | $— | $(168,829) |
Assets | |
Investments in unaffiliated issuers, at value (identified cost, $397,493,832) | $331,331,396 |
Investments in affiliated issuers, at value (identified cost, $75,800,369) | 75,804,189 |
Cash | 1,448,559 |
Foreign currency, at value (identified cost, $7,627) | 7,498 |
Restricted cash for | |
Forward foreign currency exchange contracts | 1,240,000 |
Deposits with brokers for | |
Cleared swaps | 1,067,057 |
Futures contracts | 413,416 |
Receivables for | |
Net daily variation margin on open cleared swap agreements | 4,273 |
Forward foreign currency exchange contracts | 2,269,200 |
Fund shares sold | 3,409,229 |
Interest | 6,802,989 |
Receivable from investment adviser | 95,848 |
Other assets | 2,028 |
Total assets | $423,895,682 |
Liabilities | |
Payables for | |
Distributions | $15,008 |
Forward foreign currency exchange contracts | 3,437,149 |
Net daily variation margin on open futures contracts | 53,787 |
Fund shares reacquired | 22,588 |
Uncleared swaps, at value | 168,829 |
Payable to affiliates | |
Administrative services fee | 786 |
Shareholder servicing costs | 20,789 |
Distribution and service fees | 195 |
Payable for independent Trustees' compensation | 13 |
Deferred country tax expense payable | 116,545 |
Accrued expenses and other liabilities | 310,322 |
Total liabilities | $4,146,011 |
Net assets | $419,749,671 |
Net assets consist of | |
Paid-in capital | $542,760,946 |
Total distributable earnings (loss) | (123,011,275) |
Net assets | $419,749,671 |
Shares of beneficial interest outstanding | 85,647,634 |
Net assets | Shares outstanding | Net asset value per share (a) | |
Class A | $3,397,611 | 693,140 | $4.90 |
Class B | 79,836 | 16,269 | 4.91 |
Class C | 732,532 | 149,405 | 4.90 |
Class I | 49,752,907 | 10,194,410 | 4.88 |
Class R1 | 59,346 | 12,025 | 4.93 |
Class R2 | 49,600 | 10,109 | 4.91 |
Class R3 | 123,160 | 25,045 | 4.92 |
Class R4 | 109,058 | 22,128 | 4.93 |
Class R6 | 365,445,621 | 74,525,103 | 4.90 |
(a) | Maximum offering price per share was equal to the net asset value per share for all share classes, except for Class A, for which the maximum offering price per share was $5.12 [100 / 95.75 x $4.90]. 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. Redemption price per share was equal to the net asset value per share for Classes I, R1, R2, R3, R4, and R6. |
Net investment income (loss) | |
Income | |
Interest | $24,777,346 |
Dividends from affiliated issuers | 501,803 |
Other | 2,922 |
Foreign taxes withheld | (368,000) |
Total investment income | $24,914,071 |
Expenses | |
Management fee | $3,313,060 |
Distribution and service fees | 19,326 |
Shareholder servicing costs | 50,999 |
Administrative services fee | 76,890 |
Independent Trustees' compensation | 8,419 |
Custodian fee | 285,116 |
Shareholder communications | 22,814 |
Audit and tax fees | 86,915 |
Legal fees | 1,869 |
Miscellaneous | 264,850 |
Total expenses | $4,130,258 |
Reduction of expenses by investment adviser | (729,499) |
Net expenses | $3,400,759 |
Net investment income (loss) | $21,513,312 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers (net of $60,643 country tax) | $(36,566,621) |
Affiliated issuers | (3,911) |
Futures contracts | 868,326 |
Swap agreements | (2,011,462) |
Forward foreign currency exchange contracts | (7,952,272) |
Foreign currency | (1,145,024) |
Net realized gain (loss) | $(46,810,964) |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers (net of $198,702 decrease in deferred country tax) | $(52,563,689) |
Affiliated issuers | 3,820 |
Futures contracts | (1,341,426) |
Swap agreements | (627,404) |
Forward foreign currency exchange contracts | (1,434,415) |
Translation of assets and liabilities in foreign currencies | (166,726) |
Net unrealized gain (loss) | $(56,129,840) |
Net realized and unrealized gain (loss) | $(102,940,804) |
Change in net assets from operations | $(81,427,492) |
Year ended | ||
10/31/22 | 10/31/21 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $21,513,312 | $17,922,639 |
Net realized gain (loss) | (46,810,964) | 2,079,495 |
Net unrealized gain (loss) | (56,129,840) | (14,653,218) |
Change in net assets from operations | $(81,427,492) | $5,348,916 |
Distributions to shareholders | $(8,055,668) | $(18,004,163) |
Tax return of capital distributions to shareholders | $(13,366,391) | $— |
Change in net assets from fund share transactions | $74,597,679 | $95,410,769 |
Total change in net assets | $(28,251,872) | $82,755,522 |
Net assets | ||
At beginning of period | 448,001,543 | 365,246,021 |
At end of period | $419,749,671 | $448,001,543 |
Class A | Year ended | ||||
10/31/22 | 10/31/21 | 10/31/20 | 10/31/19 | 10/31/18 | |
Net asset value, beginning of period | $6.20 | $6.34 | $6.94 | $6.20 | $6.99 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.25 | $0.26 | $0.27 | $0.33 | $0.34 |
Net realized and unrealized gain (loss) | (1.30) | (0.14) | (0.59) | 0.72 | (0.78) |
Total from investment operations | $(1.05) | $0.12 | $(0.32) | $1.05 | $(0.44) |
Less distributions declared to shareholders | |||||
From net investment income | $(0.09) | $(0.26) | $(0.14) | $(0.18) | $(0.15) |
From tax return of capital | (0.16) | — | (0.14) | (0.13) | (0.20) |
Total distributions declared to shareholders | $(0.25) | $(0.26) | $(0.28) | $(0.31) | $(0.35) |
Net asset value, end of period (x) | $4.90 | $6.20 | $6.34 | $6.94 | $6.20 |
Total return (%) (r)(s)(t)(x) | (17.29) | 1.75 | (4.54) | 17.31 | (6.65) |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 1.27 | 1.36 | 1.44 | 1.40 | 1.44 |
Expenses after expense reductions | 1.10 | 1.10 | 1.10 | 1.10 | 1.11 |
Net investment income (loss) | 4.54 | 3.90 | 4.22 | 5.00 | 4.89 |
Portfolio turnover | 64 | 82 | 78 | 136 | 95 |
Net assets at end of period (000 omitted) | $3,398 | $3,934 | $1,916 | $2,350 | $2,056 |
Class B | Year ended | ||||
10/31/22 | 10/31/21 | 10/31/20 | 10/31/19 | 10/31/18 | |
Net asset value, beginning of period | $6.20 | $6.35 | $6.95 | $6.20 | $7.00 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.21 | $0.21 | $0.23 | $0.28 | $0.29 |
Net realized and unrealized gain (loss) | (1.29) | (0.15) | (0.60) | 0.73 | (0.79) |
Total from investment operations | $(1.08) | $0.06 | $(0.37) | $1.01 | $(0.50) |
Less distributions declared to shareholders | |||||
From net investment income | $(0.08) | $(0.21) | $(0.12) | $(0.15) | $(0.13) |
From tax return of capital | (0.13) | — | (0.11) | (0.11) | (0.17) |
Total distributions declared to shareholders | $(0.21) | $(0.21) | $(0.23) | $(0.26) | $(0.30) |
Net asset value, end of period (x) | $4.91 | $6.20 | $6.35 | $6.95 | $6.20 |
Total return (%) (r)(s)(t)(x) | (17.76) | 0.83 | (5.25) | 16.62 | (7.48) |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 2.02 | 2.11 | 2.19 | 2.15 | 2.19 |
Expenses after expense reductions | 1.85 | 1.85 | 1.85 | 1.85 | 1.86 |
Net investment income (loss) | 3.78 | 3.20 | 3.48 | 4.28 | 4.17 |
Portfolio turnover | 64 | 82 | 78 | 136 | 95 |
Net assets at end of period (000 omitted) | $80 | $101 | $113 | $131 | $115 |
Class C | Year ended | ||||
10/31/22 | 10/31/21 | 10/31/20 | 10/31/19 | 10/31/18 | |
Net asset value, beginning of period | $6.20 | $6.34 | $6.94 | $6.20 | $7.00 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.21 | $0.21 | $0.22 | $0.28 | $0.28 |
Net realized and unrealized gain (loss) | (1.30) | (0.14) | (0.59) | 0.72 | (0.78) |
Total from investment operations | $(1.09) | $0.07 | $(0.37) | $1.00 | $(0.50) |
Less distributions declared to shareholders | |||||
From net investment income | $(0.08) | $(0.21) | $(0.12) | $(0.15) | $(0.13) |
From tax return of capital | (0.13) | — | (0.11) | (0.11) | (0.17) |
Total distributions declared to shareholders | $(0.21) | $(0.21) | $(0.23) | $(0.26) | $(0.30) |
Net asset value, end of period (x) | $4.90 | $6.20 | $6.34 | $6.94 | $6.20 |
Total return (%) (r)(s)(t)(x) | (17.93) | 0.99 | (5.26) | 16.45 | (7.48) |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 2.02 | 2.11 | 2.19 | 2.15 | 2.19 |
Expenses after expense reductions | 1.85 | 1.85 | 1.85 | 1.85 | 1.86 |
Net investment income (loss) | 3.78 | 3.19 | 3.46 | 4.18 | 4.12 |
Portfolio turnover | 64 | 82 | 78 | 136 | 95 |
Net assets at end of period (000 omitted) | $733 | $1,003 | $1,093 | $1,268 | $563 |
Class I | Year ended | ||||
10/31/22 | 10/31/21 | 10/31/20 | 10/31/19 | 10/31/18 | |
Net asset value, beginning of period | $6.18 | $6.32 | $6.92 | $6.18 | $6.98 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.26 | $0.27 | $0.29 | $0.35 | $0.34 |
Net realized and unrealized gain (loss) | (1.29) | (0.13) | (0.59) | 0.72 | (0.77) |
Total from investment operations | $(1.03) | $0.14 | $(0.30) | $1.07 | $(0.43) |
Less distributions declared to shareholders | |||||
From net investment income | $(0.10) | $(0.28) | $(0.15) | $(0.19) | $(0.15) |
From tax return of capital | (0.17) | — | (0.15) | (0.14) | (0.22) |
Total distributions declared to shareholders | $(0.27) | $(0.28) | $(0.30) | $(0.33) | $(0.37) |
Net asset value, end of period (x) | $4.88 | $6.18 | $6.32 | $6.92 | $6.18 |
Total return (%) (r)(s)(t)(x) | (17.15) | 2.00 | (4.33) | 17.64 | (6.58) |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 1.04 | 1.11 | 1.18 | 1.15 | 1.19 |
Expenses after expense reductions | 0.85 | 0.85 | 0.85 | 0.85 | 0.86 |
Net investment income (loss) | 4.84 | 4.18 | 4.48 | 5.21 | 5.04 |
Portfolio turnover | 64 | 82 | 78 | 136 | 95 |
Net assets at end of period (000 omitted) | $49,753 | $13,991 | $15,055 | $24,544 | $13,417 |
Class R1 | Year ended | ||||
10/31/22 | 10/31/21 | 10/31/20 | 10/31/19 | 10/31/18 | |
Net asset value, beginning of period | $6.24 | $6.35 | $6.95 | $6.21 | $7.01 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.21 | $0.19 | $0.22 | $0.29 | $0.29 |
Net realized and unrealized gain (loss) | (1.31) | (0.09)(g) | (0.59) | 0.72 | (0.79) |
Total from investment operations | $(1.10) | $0.10 | $(0.37) | $1.01 | $(0.50) |
Less distributions declared to shareholders | |||||
From net investment income | $(0.08) | $(0.21) | $(0.12) | $(0.16) | $(0.13) |
From tax return of capital | (0.13) | — | (0.11) | (0.11) | (0.17) |
Total distributions declared to shareholders | $(0.21) | $(0.21) | $(0.23) | $(0.27) | $(0.30) |
Net asset value, end of period (x) | $4.93 | $6.24 | $6.35 | $6.95 | $6.21 |
Total return (%) (r)(s)(t)(x) | (17.95) | 1.47 | (5.25) | 16.43 | (7.46) |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 2.02 | 2.09 | 2.18 | 2.15 | 2.19 |
Expenses after expense reductions | 1.85 | 1.85 | 1.85 | 1.85 | 1.86 |
Net investment income (loss) | 3.79 | 2.91 | 3.47 | 4.29 | 4.15 |
Portfolio turnover | 64 | 82 | 78 | 136 | 95 |
Net assets at end of period (000 omitted) | $59 | $58 | $58 | $61 | $52 |
Class R2 | Year ended | ||||
10/31/22 | 10/31/21 | 10/31/20 | 10/31/19 | 10/31/18 | |
Net asset value, beginning of period | $6.21 | $6.35 | $6.95 | $6.20 | $7.00 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.24 | $0.24 | $0.26 | $0.32 | $0.32 |
Net realized and unrealized gain (loss) | (1.30) | (0.14) | (0.59) | 0.73 | (0.78) |
Total from investment operations | $(1.06) | $0.10 | $(0.33) | $1.05 | $(0.46) |
Less distributions declared to shareholders | |||||
From net investment income | $(0.09) | $(0.24) | $(0.14) | $(0.18) | $(0.14) |
From tax return of capital | (0.15) | — | (0.13) | (0.12) | (0.20) |
Total distributions declared to shareholders | $(0.24) | $(0.24) | $(0.27) | $(0.30) | $(0.34) |
Net asset value, end of period (x) | $4.91 | $6.21 | $6.35 | $6.95 | $6.20 |
Total return (%) (r)(s)(t)(x) | (17.47) | 1.50 | (4.77) | 17.19 | (7.01) |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 1.52 | 1.61 | 1.68 | 1.65 | 1.69 |
Expenses after expense reductions | 1.35 | 1.35 | 1.35 | 1.35 | 1.36 |
Net investment income (loss) | 4.29 | 3.70 | 3.97 | 4.79 | 4.65 |
Portfolio turnover | 64 | 82 | 78 | 136 | 95 |
Net assets at end of period (000 omitted) | $50 | $60 | $59 | $62 | $53 |
Class R3 | Year ended | ||||
10/31/22 | 10/31/21 | 10/31/20 | 10/31/19 | 10/31/18 | |
Net asset value, beginning of period | $6.22 | $6.36 | $6.96 | $6.22 | $7.01 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.25 | $0.26 | $0.27 | $0.33 | $0.32 |
Net realized and unrealized gain (loss) | (1.30) | (0.14) | (0.59) | 0.72 | (0.76) |
Total from investment operations | $(1.05) | $0.12 | $(0.32) | $1.05 | $(0.44) |
Less distributions declared to shareholders | |||||
From net investment income | $(0.09) | $(0.26) | $(0.14) | $(0.18) | $(0.15) |
From tax return of capital | (0.16) | — | (0.14) | (0.13) | (0.20) |
Total distributions declared to shareholders | $(0.25) | $(0.26) | $(0.28) | $(0.31) | $(0.35) |
Net asset value, end of period (x) | $4.92 | $6.22 | $6.36 | $6.96 | $6.22 |
Total return (%) (r)(s)(t)(x) | (17.22) | 1.76 | (4.52) | 17.27 | (6.61) |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 1.27 | 1.37 | 1.44 | 1.40 | 1.44 |
Expenses after expense reductions | 1.10 | 1.10 | 1.10 | 1.10 | 1.11 |
Net investment income (loss) | 4.55 | 3.96 | 4.21 | 5.01 | 4.75 |
Portfolio turnover | 64 | 82 | 78 | 136 | 95 |
Net assets at end of period (000 omitted) | $123 | $132 | $275 | $211 | $155 |
Class R4 | Year ended | ||||
10/31/22 | 10/31/21 | 10/31/20 | 10/31/19 | 10/31/18 | |
Net asset value, beginning of period | $6.23 | $6.38 | $6.98 | $6.23 | $7.00 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.27 | $0.28 | $0.29 | $0.35 | $0.38 |
Net realized and unrealized gain (loss) | (1.30) | (0.15) | (0.59) | 0.73 | (0.78) |
Total from investment operations | $(1.03) | $0.13 | $(0.30) | $1.08 | $(0.40) |
Less distributions declared to shareholders | |||||
From net investment income | $(0.10) | $(0.28) | $(0.15) | $(0.19) | $(0.15) |
From tax return of capital | (0.17) | — | (0.15) | (0.14) | (0.22) |
Total distributions declared to shareholders | $(0.27) | $(0.28) | $(0.30) | $(0.33) | $(0.37) |
Net asset value, end of period (x) | $4.93 | $6.23 | $6.38 | $6.98 | $6.23 |
Total return (%) (r)(s)(t)(x) | (16.98) | 1.86 | (4.25) | 17.71 | (6.10) |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 1.02 | 1.11 | 1.19 | 1.15 | 1.22 |
Expenses after expense reductions | 0.85 | 0.85 | 0.85 | 0.85 | 0.85 |
Net investment income (loss) | 4.79 | 4.19 | 4.42 | 5.29 | 5.45 |
Portfolio turnover | 64 | 82 | 78 | 136 | 95 |
Net assets at end of period (000 omitted) | $109 | $127 | $122 | $64 | $54 |
Class R6 | Year ended | ||||
10/31/22 | 10/31/21 | 10/31/20 | 10/31/19 | 10/31/18 | |
Net asset value, beginning of period | $6.20 | $6.34 | $6.94 | $6.20 | $7.00 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.27 | $0.28 | $0.30 | $0.36 | $0.36 |
Net realized and unrealized gain (loss) | (1.30) | (0.14) | (0.59) | 0.72 | (0.78) |
Total from investment operations | $(1.03) | $0.14 | $(0.29) | $1.08 | $(0.42) |
Less distributions declared to shareholders | |||||
From net investment income | $(0.10) | $(0.28) | $(0.16) | $(0.20) | $(0.16) |
From tax return of capital | (0.17) | — | (0.15) | (0.14) | (0.22) |
Total distributions declared to shareholders | $(0.27) | $(0.28) | $(0.31) | $(0.34) | $(0.38) |
Net asset value, end of period (x) | $4.90 | $6.20 | $6.34 | $6.94 | $6.20 |
Total return (%) (r)(s)(t)(x) | (17.00) | 2.10 | (4.20) | 17.69 | (6.45) |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.92 | 1.02 | 1.08 | 1.08 | 1.11 |
Expenses after expense reductions | 0.76 | 0.76 | 0.74 | 0.78 | 0.77 |
Net investment income (loss) | 4.88 | 4.28 | 4.57 | 5.37 | 5.23 |
Portfolio turnover | 64 | 82 | 78 | 136 | 95 |
Net assets at end of period (000 omitted) | $365,446 | $428,596 | $346,556 | $317,272 | $298,538 |
(d) | Per share data is based on average shares outstanding. |
(g) | The per share amount varies from the net realized and unrealized gain/loss for the period because of the timing of sales of fund shares and the per share amount of realized and unrealized gains and losses at such time. |
(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. |
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
Non - U.S. Sovereign Debt | $— | $311,522,215 | $2,036,062 | $313,558,277 |
Foreign Bonds | — | 17,773,119 | — | 17,773,119 |
Mutual Funds | 75,804,189 | — | — | 75,804,189 |
Total | $75,804,189 | $329,295,334 | $2,036,062 | $407,135,585 |
Other Financial Instruments | ||||
Futures Contracts – Assets | $49,384 | $— | $— | $49,384 |
Futures Contracts – Liabilities | (1,042,782) | — | — | (1,042,782) |
Forward Foreign Currency Exchange Contracts – Assets | — | 2,269,200 | — | 2,269,200 |
Forward Foreign Currency Exchange Contracts – Liabilities | — | (3,437,149) | — | (3,437,149) |
Swap Agreements – Assets | — | 28,209 | — | 28,209 |
Swap Agreements – Liabilities | — | (2,312,626) | — | (2,312,626) |
Fixed Income Securities | |
Balance as of 10/31/21 | $— |
Transfers into level 3 | $2,036,062 |
Balance as of 10/31/22 | $2,036,062 |
Fair Value (a) | |||
Risk | Derivative Contracts | Asset Derivatives | Liability Derivatives |
Interest Rate | Futures Contracts | $49,384 | $(1,042,782) |
Interest Rate | Cleared Swap Agreements | 28,209 | (2,143,797) |
Interest Rate | Uncleared Swap Agreements | — | (168,829) |
Foreign Exchange | Forward Foreign Currency Exchange Contracts | 2,269,200 | (3,437,149) |
Total | $2,346,793 | $(6,792,557) |
(a) | Values presented in this table for futures contracts and cleared swap agreements correspond to the values reported in the Portfolio of Investments. Only the current day net variation margin for futures contracts and cleared swap agreements is reported separately within the Statement of Assets and Liabilities. |
Risk | Futures Contracts | Swap Agreements | Forward Foreign Currency Exchange Contracts | Unaffiliated Issuers (Purchased Options) |
Interest Rate | $868,326 | $(2,011,462) | $— | $— |
Foreign Exchange | — | — | (7,952,272) | (45,200) |
Total | $868,326 | $(2,011,462) | $(7,952,272) | $(45,200) |
Risk | Futures Contracts | Swap Agreements | Forward Foreign Currency Exchange Contracts |
Interest Rate | $(1,341,426) | $(627,404) | $— |
Foreign Exchange | — | — | (1,434,415) |
Total | $(1,341,426) | $(627,404) | $(1,434,415) |
Gross Amounts of: | Derivative Assets | Derivative Liabilities |
Futures Contracts (a) | $— | $(53,787) |
Uncleared Swaps, at value | — | (168,829) |
Cleared Swap Agreements (a) | 4,273 | — |
Forward Foreign Currency Exchange Contracts | 2,269,200 | (3,437,149) |
Total Gross Amount of Derivative Assets and Liabilities Presented in the Statement of Assets & Liabilities | $2,273,473 | $(3,659,765) |
Less: Derivatives Assets and Liabilities Not Subject to a Master Netting Agreement or Similar Arrangement | 94,868 | (329,443) |
Total Gross Amount of Derivative Assets and Liabilities Subject to a Master Netting Agreement or Similar Arrangement | $2,178,605 | $(3,330,322) |
(a) | The amount presented here represents the fund's current day net variation margin for futures contracts and for cleared swap agreements. This amount, which is recognized within the Statement of Assets and Liabilities, differs from the fair value of the futures contracts and cleared swap agreements which is presented in the tables that follow the Portfolio of Investments. |
Amounts Not Offset in the Statement of Assets & Liabilities | |||||
Gross Amount of Derivative Assets Subject to a Master Netting Agreement (or Similar Arrangement) by Counterparty | Financial Instruments Available for Offset | Financial Instruments Collateral Received (b) | Cash Collateral Received (b) | Net Amount of Derivative Assets by Counterparty | |
Banco Santander S.A. | $148,782 | $(138,092) | $— | $— | $10,690 |
Barclays Bank PLC | 503,783 | (503,783) | — | — | — |
BNP Paribas S.A. | 152,312 | — | — | — | 152,312 |
Brown Brothers Harriman | 6,763 | — | — | — | 6,763 |
Citibank N.A. | 371,909 | (180,967) | — | (190,942) | — |
Goldman Sachs International | 178,890 | (94,809) | — | — | 84,081 |
JPMorgan Chase Bank N.A. | 364,584 | (364,584) | — | — | — |
Merrill Lynch International | 401,017 | — | — | (240,000) | 161,017 |
Morgan Stanley Capital Services, Inc. | 50,565 | (50,565) | — | — | — |
Total | $2,178,605 | $(1,332,800) | $— | $(430,942) | $414,863 |
Amounts Not Offset in the Statement of Assets & Liabilities | |||||
Gross Amount of Derivative Liabilities Subject to a Master Netting Agreement (or Similar Arrangement) by Counterparty | Financial Instruments Available for Offset | Financial Instruments Collateral Pledged (b) | Cash Collateral Pledged (b) | Net Amount of Derivative Liabilities by Counterparty | |
Banco Santander S.A. | $(138,092) | $138,092 | $— | $— | $— |
Barclays Bank PLC | (2,122,595) | 503,783 | — | 1,200,000 | (418,812) |
Citibank N.A. | (180,967) | 180,967 | — | — | — |
Deutsche Bank AG | (1,936) | — | — | — | (1,936) |
Goldman Sachs International | (94,809) | 94,809 | — | — | — |
JPMorgan Chase Bank N.A. | (697,266) | 364,584 | — | — | (332,682) |
Morgan Stanley Capital Services, Inc. | (94,657) | 50,565 | — | 40,000 | (4,092) |
Total | $(3,330,322) | $1,332,800 | $— | $1,240,000 | $(757,522) |
(b) | The amount presented here may be less than the total amount of collateral (received)/pledged as the excess collateral (received)/pledged is not shown for purposes of this presentation. |
Year ended 10/31/22 | Year ended 10/31/21 | |
Ordinary income (including any short-term capital gains) | $8,055,668 | $18,004,163 |
Tax return of capital (b) | 13,366,391 | — |
Total distributions | $21,422,059 | $18,004,163 |
(b) | Distributions in excess of tax basis earnings and profits are reported in the financial statements as a tax return of capital. |
As of 10/31/22 | |
Cost of investments | $478,128,756 |
Gross appreciation | 1,178,899 |
Gross depreciation | (76,617,834) |
Net unrealized appreciation (depreciation) | $(75,438,935) |
Capital loss carryforwards | (45,858,335) |
Other temporary differences | (1,714,005) |
Total distributable earnings (loss) | $(123,011,275) |
Short-Term | $(25,751,922) |
Long-Term | (20,106,413) |
Total | $(45,858,335) |
From net investment income | From tax return of capital | ||||||
Year ended 10/31/22 | Year ended 10/31/21 | Year ended 10/31/22 | Year ended 10/31/21 | ||||
Class A | $57,162 | $137,523 | $94,847 | $— | |||
Class B | 1,374 | 3,462 | 2,279 | — | |||
Class C | 12,337 | 34,265 | 20,471 | — | |||
Class I | 515,196 | 655,445 | 854,841 | — | |||
Class R1 | 789 | 4,291 | 1,308 | — | |||
Class R2 | 886 | 2,314 | 1,469 | — | |||
Class R3 | 2,144 | 7,725 | 3,557 | — | |||
Class R4 | 2,100 | 5,428 | 3,485 | — | |||
Class R6 | 7,463,680 | 17,153,710 | 12,384,134 | — | |||
Total | $8,055,668 | $18,004,163 | $13,366,391 | $— |
Up to $1 billion | 0.75% |
In excess of $1 billion and up to $2.5 billion | 0.70% |
In excess of $2.5 billion | 0.65% |
Classes | ||||||||
A | B | C | I | R1 | R2 | R3 | R4 | R6 |
1.10% | 1.85% | 1.85% | 0.85% | 1.85% | 1.35% | 1.10% | 0.85% | 0.84% |
Classes | ||||||||
A | B | C | I | R1 | R2 | R3 | R4 | R6 |
1.10% | 1.85% | 1.85% | 0.85% | 1.85% | 1.35% | 1.10% | 0.85% | 0.78% |
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% | $ 8,475 |
Class B | 0.75% | 0.25% | 1.00% | 1.00% | 966 |
Class C | 0.75% | 0.25% | 1.00% | 1.00% | 8,728 |
Class R1 | 0.75% | 0.25% | 1.00% | 1.00% | 565 |
Class R2 | 0.25% | 0.25% | 0.50% | 0.50% | 276 |
Class R3 | — | 0.25% | 0.25% | 0.25% | 316 |
Total Distribution and Service Fees | $19,326 |
(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 October 31, 2022 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 there is no financial intermediary specified on the account except for accounts attributable to MFS or its affiliates' seed money. There were no service fee rebates for the year ended October 31, 2022. |
Amount | |
Class A | $42 |
Class B | — |
Class C | — |
Year ended 10/31/22 | Year ended 10/31/21 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Class A | 278,538 | $1,503,005 | 453,180 | $2,994,670 | |
Class B | 1,442 | 8,855 | 121 | 798 | |
Class C | 12,555 | 70,391 | 30,060 | 195,745 | |
Class I | 11,642,489 | 64,181,221 | 1,014,962 | 6,794,608 | |
Class R1 | 2,272 | 12,000 | 171,074 | 1,110,268 | |
Class R3 | 3,347 | 18,577 | 3,906 | 25,883 | |
Class R4 | 807 | 4,034 | 583 | 3,746 | |
Class R6 | 9,356,291 | 53,178,449 | 14,360,263 | 93,782,862 | |
21,297,741 | $118,976,532 | 16,034,149 | $104,908,580 |
Year ended 10/31/22 | Year ended 10/31/21 | ||||
Shares | Amount | Shares | Amount | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Class A | 26,525 | $146,587 | 20,233 | $131,847 | |
Class B | 447 | 2,473 | 339 | 2,218 | |
Class C | 5,894 | 32,759 | 5,230 | 34,248 | |
Class I | 257,662 | 1,364,783 | 99,893 | 651,852 | |
Class R1 | 377 | 2,097 | 528 | 3,444 | |
Class R2 | 424 | 2,355 | 353 | 2,314 | |
Class R3 | 1,029 | 5,699 | 1,175 | 7,725 | |
Class R4 | 1,003 | 5,585 | 825 | 5,428 | |
Class R6 | 3,539,095 | 19,622,181 | 2,601,735 | 17,009,036 | |
3,832,456 | $21,184,519 | 2,730,311 | $17,848,112 | ||
Shares reacquired | |||||
Class A | (246,801) | $(1,388,684) | (140,843) | $(927,304) | |
Class B | (1,963) | (10,137) | (1,917) | (12,963) | |
Class C | (30,729) | (169,441) | (45,997) | (305,227) | |
Class I | (3,969,604) | (22,497,648) | (1,233,461) | (8,159,930) | |
Class R1 | — | — | (171,305) | (1,098,064) | |
Class R3 | (600) | (3,728) | (27,011) | (177,417) | |
Class R4 | (6) | (36) | (151) | (987) | |
Class R6 | (7,471,723) | (41,493,698) | (2,489,104) | (16,664,031) | |
(11,721,426) | $(65,563,372) | (4,109,789) | $(27,345,923) | ||
Net change | |||||
Class A | 58,262 | $260,908 | 332,570 | $2,199,213 | |
Class B | (74) | 1,191 | (1,457) | (9,947) | |
Class C | (12,280) | (66,291) | (10,707) | (75,234) | |
Class I | 7,930,547 | 43,048,356 | (118,606) | (713,470) | |
Class R1 | 2,649 | 14,097 | 297 | 15,648 | |
Class R2 | 424 | 2,355 | 353 | 2,314 | |
Class R3 | 3,776 | 20,548 | (21,930) | (143,809) | |
Class R4 | 1,804 | 9,583 | 1,257 | 8,187 | |
Class R6 | 5,423,663 | 31,306,932 | 14,472,894 | 94,127,867 | |
13,408,771 | $74,597,679 | 14,654,671 | $95,410,769 |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $44,866,046 | $250,932,264 | $219,994,030 | $(3,911) | $3,820 | $75,804,189 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $501,803 | $— |
December 15, 2022
Name, Age | Position(s) Held with Fund | Trustee/Officer Since(h) | Number of MFS Funds overseen by the Trustee | Principal Occupations During the Past Five Years | Other Directorships During the Past Five Years (j) | |||||
INTERESTED TRUSTEES | ||||||||||
Michael W. Roberge (k) (age 56) | Trustee | January 2021 | 136 | Massachusetts Financial Services Company, Chairman (since January 2021); Chief Executive Officer (since January 2017); Director; Chairman of the Board (since January 2022); President (until December 2018); Chief Investment Officer (until December 2018) | N/A | |||||
INDEPENDENT TRUSTEES | ||||||||||
John P. Kavanaugh (age 68) | Trustee and Chair of Trustees | January 2009 | 136 | Private investor | N/A | |||||
Steven E. Buller (age 71) | Trustee | February 2014 | 136 | Private investor | N/A | |||||
John A. Caroselli (age 68) | Trustee | March 2017 | 136 | Private investor; JC Global Advisors, LLC (management consulting), President (since 2015) | N/A | |||||
Maureen R. Goldfarb (age 67) | Trustee | January 2009 | 136 | Private investor | N/A | |||||
Peter D. Jones (age 67) | Trustee | January 2019 | 136 | Private investor | N/A | |||||
James W. Kilman, Jr. (age 61) | Trustee | January 2019 | 136 | Burford Capital Limited (finance and investment management), Senior Advisor (since May 3, 2021), Chief Financial Officer (2019 - May 2, 2021); KielStrand Capital LLC (family office), Chief Executive Officer (since 2016) | Alpha-En Corporation, Director (2016-2019) |
Name, Age | Position(s) Held with Fund | Trustee/Officer Since(h) | Number of MFS Funds overseen by the Trustee | Principal Occupations During the Past Five Years | Other Directorships During the Past Five Years (j) | |||||
Clarence Otis, Jr. (age 66) | Trustee | March 2017 | 136 | Private investor | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director | |||||
Maryanne L. Roepke (age 66) | Trustee | May 2014 | 136 | Private investor | N/A | |||||
Laurie J. Thomsen (age 65) | Trustee | March 2005 | 136 | Private investor | The Travelers Companies, Director; Dycom Industries, Inc., Director |
Name, Age | Position(s) Held with Fund | Trustee/Officer Since(h) | Number of MFS Funds for which the Person is an Officer | Principal Occupations During the Past Five Years | ||||
OFFICERS | ||||||||
Christopher R. Bohane (k) (age 48) | Assistant Secretary and Assistant Clerk | July 2005 | 136 | Massachusetts Financial Services Company, Senior Vice President and Senior Managing Counsel | ||||
Kino Clark (k) (age 54) | Assistant Treasurer | January 2012 | 136 | Massachusetts Financial Services Company, Vice President | ||||
John W. Clark, Jr. (k) (age 55) | Assistant Treasurer | April 2017 | 136 | Massachusetts Financial Services Company, Vice President | ||||
David L. DiLorenzo (k) (age 54) | President | July 2005 | 136 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 55) | Secretary and Clerk | April 2017 | 136 | Massachusetts Financial Services Company, Executive Vice President and General Counsel | ||||
Brian E. Langenfeld (k) (age 49) | Assistant Secretary and Assistant Clerk | June 2006 | 136 | Massachusetts Financial Services Company, Vice President and Managing Counsel |
Name, Age | Position(s) Held with Fund | Trustee/Officer Since(h) | Number of MFS Funds for which the Person is an Officer | Principal Occupations During the Past Five Years | ||||
Rosa E. Licea-Mailloux (k) (age 46) | Chief Compliance Officer | March 2022 | 136 | Massachusetts Financial Services Company, Vice President (since 2018); Director of Corporate Compliance (2018-2021), Senior Director Compliance (2021-2022), Senior Managing Director of North American Compliance & Chief Compliance Officer (since March 2022); Natixis Investment Managers (investment management), Funds Chief Compliance Officer, Deputy General Counsel & Senior Vice President (until 2018) | ||||
Amanda S. Mooradian (k) (age 43) | Assistant Secretary and Assistant Clerk | September 2018 | 136 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 52) | Assistant Secretary and Assistant Clerk | July 2005 | 136 | Massachusetts Financial Services Company, Vice President and Managing Counsel | ||||
Kasey L. Phillips (k) (age 51) | Assistant Treasurer | September 2012 | 136 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 48) | Assistant Secretary and Assistant Clerk | October 2014 | 136 | Massachusetts Financial Services Company, Vice President and Senior Managing Counsel | ||||
William B. Wilson (k) (age 40) | Assistant Secretary and Assistant Clerk | October 2022 | 136 | Massachusetts Financial Services Company, Assistant Vice President and Counsel | ||||
James O. Yost (k) (age 62) | Treasurer | September 1990 | 136 | 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. 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. |
Investment Adviser | Custodian |
Massachusetts Financial Services Company 111 Huntington Avenue Boston, MA 02199-7618 | State Street Bank and Trust Company 1 Lincoln Street Boston, MA 02111-2900 |
Distributor | Independent Registered Public Accounting Firm |
MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618 | Ernst & Young LLP 200 Clarendon Street Boston, MA 02116 |
Portfolio Manager(s) | |
Ward Brown Matt Ryan |
FACTS | 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. |
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. |
Item 1(b):
Not applicable
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 Code is attached hereto as EX-99.COE.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Messrs. Steven E. Buller, James Kilman, 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, Kilman, 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.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Items 4(a) through 4(d) and 4(g):
The Board of Trustees has appointed Ernst & Young LLP ("E&Y") to serve as independent accountants to certain series of the Registrant. The tables below set forth the audit fees billed to the series of the Registrant with a fiscal year end of October 31, 2022 (the "Fund") as well as fees for non-audit services provided to the 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 October 31, 2022 and 2021, audit fees billed to the Fund by E&Y were as follows:
Fees billed by E&Y: |
| Audit Fees |
| 2022 | 2021 |
MFS Emerging Markets Debt Local | 64,939 | 61,653 |
Currency Fund |
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For the fiscal years ended October 31, 2022 and 2021, fees billed by E&Y for audit-related, tax and other services provided to the Fund and for audit-related, tax and other services provided to MFS and MFS Related Entities were as follows:
Fees billed by E&Y: |
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| Audit-Related |
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| Tax Fees2 |
| All Other Fees3 | ||
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| Fees1 |
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| 2022 | 2021 |
| 2022 | 2021 |
| 2022 | 2021 | |||
To MFS Emerging Markets | 0 | 0 |
| 255 | 10,607 |
| 69 | 1,084 | |||
Debt Local Currency Fund |
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Fees billed by E&Y: |
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| Audit-Related |
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| Tax Fees2 |
| All Other Fees3 | ||
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| Fees1 |
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| 2022 | 2021 |
| 2022 | 2021 |
| 2022 | 2021 | |||
To MFS and MFS Related Entities of |
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MFS Emerging Markets Debt Local | 662,511 | 1,663,649 |
| 0 | 0 |
| 111,415 | 110,620 | |||
Currency Trust* |
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Fees Billed by E&Y: |
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| Aggregate Fees for Non-audit Services |
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| 2022 |
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| 2021 |
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To MFS Emerging Markets Debt Local Currency |
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Fund, MFS and MFS Related Entities # |
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| 904,680 |
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| 2,002,660 |
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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 Fund (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 E&Y for non-audit services rendered to the Fund 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 E&Y other than those reported under "Audit Fees," "Audit-Related Fees" and "Tax Fees," including fees for services related to review of internal controls and review of Rule 38a-1 compliance program.
Item 4(e)(1):
Set forth below are the policies and procedures established by the Audit Committee of the Board of Trustees relating to the pre- approval of audit and non-audit related services:
To the extent required by applicable law, pre-approval by the Audit Committee of the Board is needed for all audit and permissible non-audit services rendered to the Funds and all permissible non-audit services rendered to MFS or MFS Related Entities if the services relate directly to the operations and financial reporting of the Registrant. Pre-approval is currently on an engagement-by- engagement basis. In the event pre-approval of such services is necessary between regular meetings of the Audit Committee and it is not practical to wait to seek pre-approval at the next regular meeting of the Audit Committee, pre-approval of such services may be referred to the Chair of the Audit Committee for approval; provided that the Chair may not pre-approve any individual engagement for such services exceeding $50,000 or multiple engagements for such services in the aggregate exceeding $100,000 in each period between regular meetings of the Audit Committee. Any engagement pre-approved by the Chair between regular meetings of the Audit Committee shall be presented for ratification by the entire Audit Committee at its next regularly scheduled meeting.
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 for each series covered by this Form N-CSR is included as part of the report to shareholders of such series under Item 1(a) of this Form N-CSR.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the Registrant.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the Registrant.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable to the Registrant.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There were no material changes to the procedures by which shareholders may send recommendations to the Board for nominees to the Registrant's Board since the Registrant last provided disclosure as to such procedures in response to the requirements of Item 407 (c)(2)(iv) of Regulation S-K or this Item.
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 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)(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: Attached hereto as EX-99.COE.
(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 as EX-99.302CERT.
(3)Any written solicitation to purchase securities under Rule 23c-1 under the Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable.
(4)Change in the registrant's independent public accountant. Not applicable.
(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 as EX-99.906CERT.
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.
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 SERIES TRUST X
By (Signature and Title)*
/S/ DAVID L. DILORENZO
David L. DiLorenzo, President
Date: December 15, 2022
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)*
/S/ DAVID L. DILORENZO
David L. DiLorenzo, President (Principal Executive Officer)
Date: December 15, 2022
By (Signature and Title)*
/S/ JAMES O. YOST
James O. Yost, Treasurer (Principal Financial Officer and Accounting Officer)
Date: December 15, 2022
* Print name and title of each signing officer under his or her signature.