Quarterly Report
May 31, 2021
MFS® Core Equity Fund
RGI-Q3
Portfolio of Investments
5/31/21 (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 ($) | ||
Common Stocks – 99.5% | ||||
Aerospace & Defense – 2.2% | ||||
CACI International, Inc., “A” (a) | 19,145 | $4,881,209 | ||
Curtiss-Wright Corp. | 72,387 | 9,071,539 | ||
Honeywell International, Inc. | 181,337 | 41,872,527 | ||
L3Harris Technologies, Inc. | 67,287 | 14,672,603 | ||
Northrop Grumman Corp. | 28,212 | 10,321,924 | ||
Parsons Corp. (a) | 102,355 | 4,054,282 | ||
Raytheon Technologies Corp. | 406,687 | 36,077,204 | ||
$120,951,288 | ||||
Alcoholic Beverages – 0.3% | ||||
Constellation Brands, Inc., “A” | 67,431 | $16,164,559 | ||
Apparel Manufacturers – 0.4% | ||||
FIGS, Inc. (a) | 29,830 | $1,018,695 | ||
NIKE, Inc., “B” | 60,163 | 8,209,843 | ||
Skechers USA, Inc., “A” (a) | 273,702 | 13,000,845 | ||
$22,229,383 | ||||
Automotive – 1.0% | ||||
Aptiv PLC (a) | 129,106 | $19,420,124 | ||
LKQ Corp. (a) | 710,435 | 36,203,768 | ||
$55,623,892 | ||||
Biotechnology – 0.9% | ||||
Illumina, Inc. (a) | 33,106 | $13,429,118 | ||
Vertex Pharmaceuticals, Inc. (a) | 183,541 | 38,292,159 | ||
$51,721,277 | ||||
Broadcasting – 0.5% | ||||
Discovery Communications, Inc., “C” (a) | 166,234 | $4,995,332 | ||
Netflix, Inc. (a) | 41,149 | 20,690,128 | ||
$25,685,460 | ||||
Brokerage & Asset Managers – 1.7% | ||||
Cboe Global Markets, Inc. | 177,246 | $19,727,480 | ||
Charles Schwab Corp. | 601,959 | 44,454,672 | ||
Invesco Ltd. | 1,046,793 | 29,865,004 | ||
$94,047,156 | ||||
Business Services – 2.9% | ||||
Accenture PLC, “A” | 61,779 | $17,431,563 | ||
Amdocs Ltd. | 147,733 | 11,537,947 | ||
Clarivate PLC (a) | 834,832 | 25,078,353 | ||
Fidelity National Information Services, Inc. | 157,023 | 23,393,287 | ||
Fiserv, Inc. (a) | 160,754 | 18,518,861 | ||
Global Payments, Inc. | 92,461 | 17,910,620 | ||
PayPal Holdings, Inc. (a) | 172,775 | 44,924,955 | ||
$158,795,586 | ||||
Cable TV – 1.1% | ||||
Cable One, Inc. | 2,922 | $5,305,066 | ||
Liberty Broadband Corp. (a) | 330,037 | 54,881,853 | ||
$60,186,919 |
1
Portfolio of Investments (unaudited) –
continued
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Chemicals – 0.5% | ||||
Element Solutions, Inc. | 792,765 | $18,542,773 | ||
FMC Corp. | 72,329 | 8,440,071 | ||
$26,982,844 | ||||
Computer Software – 9.9% | ||||
Adobe Systems, Inc. (a) | 155,604 | $78,514,666 | ||
Atlassian Corp. PLC, “A” (a) | 155,243 | 36,215,087 | ||
Cadence Design Systems, Inc. (a) | 291,875 | 37,065,206 | ||
Dragoneer Growth Opportunities Corp. (a) | 1,179,927 | 11,728,475 | ||
Eventbrite, Inc. (a) | 809,686 | 16,436,626 | ||
Everbridge, Inc. (a) | 130,134 | 15,290,745 | ||
Microsoft Corp. | 1,124,034 | 280,648,809 | ||
Ping Identity Holding Corp. (a) | 148,243 | 3,574,139 | ||
salesforce.com, inc. (a) | 259,431 | 61,770,521 | ||
$541,244,274 | ||||
Computer Software - Systems – 7.7% | ||||
Apple, Inc. (s) | 2,295,799 | $286,079,513 | ||
EPAM Systems, Inc. (a) | 39,758 | 18,988,421 | ||
Rapid7, Inc. (a) | 186,282 | 15,582,489 | ||
ServiceNow, Inc. (a) | 61,546 | 29,165,419 | ||
Square, Inc., “A” (a) | 91,894 | 20,448,253 | ||
TransUnion | 314,792 | 33,682,744 | ||
Zebra Technologies Corp., “A” (a) | 42,118 | 20,934,752 | ||
$424,881,591 | ||||
Construction – 1.6% | ||||
AvalonBay Communities, Inc., REIT | 85,579 | $17,709,718 | ||
AZEK Co. LLC (a) | 246,851 | 10,745,424 | ||
D.R. Horton, Inc. | 49,393 | 4,706,659 | ||
Masco Corp. | 318,510 | 19,209,338 | ||
Otis Worldwide Corp. | 156,469 | 12,256,217 | ||
Sherwin-Williams Co. | 29,478 | 8,357,898 | ||
Vulcan Materials Co. | 84,879 | 15,560,018 | ||
$88,545,272 | ||||
Consumer Products – 1.3% | ||||
Colgate-Palmolive Co. | 285,492 | $23,918,520 | ||
International Flavors & Fragrances, Inc. | 65,922 | 9,339,170 | ||
Kimberly-Clark Corp. | 134,650 | 17,589,329 | ||
Procter & Gamble Co. | 171,874 | 23,177,209 | ||
$74,024,228 | ||||
Consumer Services – 0.8% | ||||
Bright Horizons Family Solutions, Inc. (a) | 75,519 | $10,438,991 | ||
Grand Canyon Education, Inc. (a) | 184,105 | 16,742,509 | ||
Uber Technologies, Inc. (a) | 369,343 | 18,773,705 | ||
$45,955,205 | ||||
Containers – 0.3% | ||||
Ball Corp. | 182,433 | $14,988,695 | ||
Electrical Equipment – 1.2% | ||||
AMETEK, Inc. | 112,308 | $15,172,811 | ||
Amphenol Corp., “A” | 38,456 | 2,586,551 | ||
Johnson Controls International PLC | 212,464 | 14,137,354 | ||
Sensata Technologies Holding PLC (a) | 417,380 | 24,804,893 | ||
TE Connectivity Ltd. | 54,948 | 7,455,345 | ||
$64,156,954 |
2
Portfolio of Investments (unaudited) –
continued
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Electronics – 4.3% | ||||
Advanced Micro Devices (a) | 317,629 | $25,435,730 | ||
Applied Materials, Inc. | 357,676 | 49,405,786 | ||
Broadcom, Inc. | 92,850 | 43,855,840 | ||
Intel Corp. | 524,764 | 29,974,520 | ||
Lam Research Corp. | 45,645 | 29,662,403 | ||
Monolithic Power Systems, Inc. | 31,463 | 10,795,585 | ||
NXP Semiconductors N.V. | 48,267 | 10,204,609 | ||
Silicon Laboratories, Inc. (a) | 30,403 | 4,151,834 | ||
Texas Instruments, Inc. | 165,982 | 31,506,703 | ||
$234,993,010 | ||||
Energy - Independent – 0.9% | ||||
ConocoPhillips | 309,952 | $17,276,725 | ||
Diamondback Energy, Inc. | 120,949 | 9,684,386 | ||
Pioneer Natural Resources Co. | 66,533 | 10,125,657 | ||
Valero Energy Corp. | 145,595 | 11,705,838 | ||
$48,792,606 | ||||
Energy - Integrated – 0.8% | ||||
Chevron Corp. | 425,667 | $44,179,978 | ||
Engineering - Construction – 0.2% | ||||
APi Group, Inc. (a) | 546,148 | $11,551,030 | ||
Food & Beverages – 2.4% | ||||
Archer Daniels Midland Co. | 248,224 | $16,514,343 | ||
Coca-Cola Co. | 150,730 | 8,333,862 | ||
Coca-Cola Europacific Partners PLC | 143,291 | 8,671,971 | ||
Hostess Brands, Inc. (a) | 484,410 | 7,595,549 | ||
J.M. Smucker Co. | 61,961 | 8,258,782 | ||
Mondelez International, Inc. | 531,790 | 33,784,619 | ||
Nomad Foods Ltd. (a) | 410 | 12,575 | ||
Oatly Group AB (a) | 246,191 | 5,837,188 | ||
PepsiCo, Inc. | 280,858 | 41,550,132 | ||
$130,559,021 | ||||
Food & Drug Stores – 1.0% | ||||
Wal-Mart Stores, Inc. | 397,306 | $56,429,371 | ||
Forest & Paper Products – 0.5% | ||||
Rayonier, Inc., REIT | 719,810 | $27,489,544 | ||
Gaming & Lodging – 0.6% | ||||
Marriott International, Inc., “A” (a) | 121,762 | $17,482,588 | ||
Penn National Gaming, Inc. (a) | 42,241 | 3,462,495 | ||
Wyndham Hotels & Resorts, Inc. | 193,237 | 14,504,369 | ||
$35,449,452 | ||||
General Merchandise – 0.8% | ||||
Dollar General Corp. | 225,115 | $45,689,340 | ||
Health Maintenance Organizations – 1.6% | ||||
Cigna Corp. | 215,514 | $55,785,799 | ||
Humana, Inc. | 74,911 | 32,788,545 | ||
$88,574,344 |
3
Portfolio of Investments (unaudited) –
continued
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Insurance – 3.5% | ||||
Aon PLC | 234,247 | $59,351,162 | ||
Arthur J. Gallagher & Co. | 199,349 | 29,226,557 | ||
Assurant, Inc. | 104,127 | 16,780,066 | ||
Chubb Ltd. | 172,469 | 29,318,005 | ||
Everest Re Group Ltd. | 33,080 | 8,599,477 | ||
Hartford Financial Services Group, Inc. | 279,170 | 18,243,759 | ||
MetLife, Inc. | 229,671 | 15,011,297 | ||
Reinsurance Group of America, Inc. | 69,236 | 8,725,813 | ||
SiriusPoint Ltd. (a) | 597,319 | 6,283,796 | ||
$191,539,932 | ||||
Internet – 5.8% | ||||
Alphabet, Inc., “A” (a)(s) | 84,623 | $199,443,718 | ||
Facebook, Inc., “A” (a) | 317,995 | 104,534,496 | ||
Farfetch Ltd., “A” (a) | 268,591 | 12,443,821 | ||
$316,422,035 | ||||
Leisure & Toys – 0.8% | ||||
Electronic Arts, Inc. | 244,836 | $34,994,410 | ||
Roblox Corp., “A” (a) | 122,191 | 11,457,850 | ||
$46,452,260 | ||||
Machinery & Tools – 2.5% | ||||
Caterpillar, Inc. | 94,082 | $22,681,289 | ||
Eaton Corp. PLC | 140,532 | 20,412,273 | ||
IDEX Corp. | 39,853 | 8,873,669 | ||
Ingersoll Rand, Inc. (a) | 355,863 | 17,665,039 | ||
PACCAR, Inc. | 113,136 | 10,358,732 | ||
Regal Beloit Corp. | 94,102 | 13,384,128 | ||
Roper Technologies, Inc. | 59,668 | 26,851,197 | ||
Trane Technologies PLC | 82,931 | 15,458,338 | ||
$135,684,665 | ||||
Major Banks – 3.8% | ||||
Bank of America Corp. | 2,044,045 | $86,647,068 | ||
Goldman Sachs Group, Inc. | 187,657 | 69,812,157 | ||
PNC Financial Services Group, Inc. | 277,024 | 53,931,032 | ||
$210,390,257 | ||||
Medical & Health Technology & Services – 1.9% | ||||
Guardant Health, Inc. (a) | 38,485 | $4,776,758 | ||
ICON PLC (a) | 238,254 | 53,311,715 | ||
IDEXX Laboratories, Inc. (a) | 8,842 | 4,934,809 | ||
McKesson Corp. | 170,813 | 32,862,713 | ||
Teladoc Health, Inc. (a) | 46,360 | 6,980,889 | ||
$102,866,884 | ||||
Medical Equipment – 4.4% | ||||
Align Technology, Inc. (a) | 22,271 | $13,143,231 | ||
Becton, Dickinson and Co. | 105,005 | 25,399,660 | ||
Boston Scientific Corp. (a) | 845,816 | 35,989,471 | ||
Danaher Corp. | 92,230 | 23,623,792 | ||
Maravai Lifesciences Holdings, Inc., “A” (a) | 721,875 | 27,099,188 | ||
Medtronic PLC | 450,053 | 56,972,209 | ||
PerkinElmer, Inc. | 117,415 | 17,033,394 | ||
Quidel Corp. (a) | 74,022 | 8,742,738 | ||
STERIS PLC | 183,812 | 35,082,358 | ||
$243,086,041 |
4
Portfolio of Investments (unaudited) –
continued
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Metals & Mining – 0.2% | ||||
Howmet Aerospace, Inc. (a) | 301,999 | $10,714,925 | ||
Natural Gas - Pipeline – 0.3% | ||||
Cheniere Energy, Inc. (a) | 79,622 | $6,759,908 | ||
Enterprise Products Partners LP | 414,002 | 9,774,587 | ||
$16,534,495 | ||||
Network & Telecom – 0.5% | ||||
Equinix, Inc., REIT | 37,768 | $27,824,441 | ||
Oil Services – 0.5% | ||||
Cactus, Inc., “A” | 216,796 | $7,596,532 | ||
ChampionX Corp. (a) | 750,167 | 19,879,425 | ||
$27,475,957 | ||||
Other Banks & Diversified Financials – 4.6% | ||||
American Express Co. | 146,411 | $23,444,793 | ||
Bank OZK | 376,731 | 16,090,181 | ||
Moody's Corp. | 61,080 | 20,483,178 | ||
Northern Trust Corp. | 131,584 | 15,946,665 | ||
SVB Financial Group (a) | 14,878 | 8,672,237 | ||
Truist Financial Corp. | 615,566 | 38,029,667 | ||
U.S. Bancorp | 337,655 | 20,522,671 | ||
United Community Bank, Inc. | 141,501 | 4,893,105 | ||
Visa, Inc., “A” | 414,899 | 94,306,543 | ||
Zions Bancorp NA | 197,893 | 11,454,047 | ||
$253,843,087 | ||||
Pharmaceuticals – 5.0% | ||||
Eli Lilly & Co. | 312,508 | $62,420,348 | ||
Johnson & Johnson | 552,047 | 93,433,955 | ||
Merck & Co., Inc. | 893,130 | 67,779,635 | ||
Zoetis, Inc. | 275,706 | 48,711,736 | ||
$272,345,674 | ||||
Pollution Control – 0.3% | ||||
GFL Environmental, Inc. | 331,900 | $10,800,026 | ||
U.S. Ecology, Inc. (a) | 103,365 | 4,096,355 | ||
$14,896,381 | ||||
Printing & Publishing – 0.1% | ||||
Warner Music Group Corp. | 140,796 | $5,053,168 | ||
Railroad & Shipping – 1.4% | ||||
Canadian Pacific Railway Ltd. | 445,771 | $36,223,351 | ||
Kansas City Southern Co. | 140,541 | 41,836,245 | ||
$78,059,596 | ||||
Real Estate – 1.6% | ||||
Broadstone Net Lease, Inc. | 522,489 | $11,411,160 | ||
Empire State Realty Trust, REIT, “A” | 973,326 | 11,514,447 | ||
EPR Properties, REIT (a) | 347,137 | 17,061,784 | ||
Extra Space Storage, Inc., REIT | 103,404 | 15,490,953 | ||
Lexington Realty Trust, REIT | 581,683 | 7,201,235 | ||
STORE Capital Corp., REIT | 464,787 | 15,988,673 | ||
Sun Communities, Inc., REIT | 38,620 | 6,465,760 | ||
$85,134,012 |
5
Portfolio of Investments (unaudited) –
continued
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Restaurants – 1.2% | ||||
Performance Food Group Co. (a) | 149,992 | $7,519,099 | ||
Starbucks Corp. | 382,053 | 43,508,195 | ||
Wendy's Co. | 705,949 | 16,392,136 | ||
$67,419,430 | ||||
Specialty Chemicals – 2.0% | ||||
Air Products & Chemicals, Inc. | 53,136 | $15,922,734 | ||
Ashland Global Holdings, Inc. | 151,982 | 14,413,973 | ||
Atotech, Ltd. (a) | 467,871 | 11,285,049 | ||
Avient Corp. | 284,743 | 14,800,941 | ||
Axalta Coating Systems Ltd. (a) | 441,238 | 14,313,761 | ||
Diversey Holdings Ltd. (a) | 727,549 | 12,281,027 | ||
DuPont de Nemours, Inc. | 225,711 | 19,092,893 | ||
Univar Solutions, Inc. (a) | 301,844 | 8,176,954 | ||
$110,287,332 | ||||
Specialty Stores – 6.2% | ||||
Amazon.com, Inc. (a)(s) | 68,306 | $220,155,019 | ||
Burlington Stores, Inc. (a) | 44,236 | 14,304,595 | ||
Home Depot, Inc. | 225,683 | 71,972,566 | ||
Petco Health & Wellness Co., Inc. (a)(l) | 388,289 | 8,794,746 | ||
Ross Stores, Inc. | 122,929 | 15,536,996 | ||
ThredUp, Inc. (a) | 114,883 | 2,710,090 | ||
Urban Outfitters, Inc. (a) | 142,362 | 5,574,896 | ||
$339,048,908 | ||||
Telecommunications - Wireless – 2.0% | ||||
SBA Communications Corp., REIT | 111,115 | $33,125,604 | ||
T-Mobile USA, Inc. (a) | 555,958 | 78,640,259 | ||
$111,765,863 | ||||
Tobacco – 0.5% | ||||
Philip Morris International, Inc. | 258,290 | $24,906,905 | ||
Trucking – 0.4% | ||||
Forward Air Corp. | 127,335 | $12,337,488 | ||
J.B. Hunt Transport Services, Inc. | 50,798 | 8,713,889 | ||
$21,051,377 | ||||
Utilities - Electric Power – 2.6% | ||||
American Electric Power Co., Inc. | 156,229 | $13,435,694 | ||
CenterPoint Energy, Inc. | 419,228 | 10,606,468 | ||
CenterPoint Energy, Inc. (PIPE) (a)(n)(z) | 208,699 | 5,280,085 | ||
DTE Energy Co. | 56,877 | 7,848,457 | ||
Duke Energy Corp. | 93,968 | 9,417,473 | ||
Evergy, Inc. | 158,227 | 9,808,492 | ||
Exelon Corp. | 330,854 | 14,928,133 | ||
NextEra Energy, Inc. | 447,936 | 32,797,874 | ||
PG&E Corp. (a) | 1,044,186 | 10,588,046 | ||
Pinnacle West Capital Corp. | 79,366 | 6,712,776 | ||
Southern Co. | 171,268 | 10,947,451 | ||
Xcel Energy, Inc. | 175,881 | 12,466,445 | ||
$144,837,394 | ||||
Total Common Stocks | $5,467,533,298 | |||
Investment Companies (h) – 2.0% | ||||
Money Market Funds – 2.0% | ||||
MFS Institutional Money Market Portfolio, 0.03% (v) | 108,570,342 | $108,570,342 |
6
Portfolio of Investments (unaudited) –
continued
Issuer | Shares/Par | Value ($) | ||
Collateral for Securities Loaned – 0.0% | ||||
State Street Navigator Securities Lending Government Money Market Portfolio, 0.01% (j) | 1,611,936 | $1,611,936 | ||
Securities Sold Short – (0.6)% | ||||
Medical & Health Technology & Services – (0.4)% | ||||
Healthcare Services Group, Inc. | (751,414) | $(22,534,906) | ||
Telecommunications - Wireless – (0.1)% | ||||
Crown Castle International Corp., REIT | (44,300) | $(8,394,850) | ||
Trucking – (0.1)% | ||||
XPO Logistics, Inc. | (25,219) | $(3,705,428) | ||
Total Securities Sold Short | $(34,635,184) | |||
Other Assets, Less Liabilities – (0.9)% | (51,011,551) | |||
Net Assets – 100.0% | $5,492,068,841 |
(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 $108,570,342 and $5,469,145,234, respectively. |
(j) | The rate quoted is the annualized seven-day yield of the fund at period end. |
(l) | A portion of this security is on loan. See Note 2 for additional information. |
(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 $5,280,085, representing 0.1% of net assets. |
(s) | Security or a portion of the security was pledged to cover collateral requirements for securities sold short. |
(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 |
CenterPoint Energy, Inc. (PIPE) | 5/07/20 | $3,355,880 | $5,280,085 |
% of Net assets | 0.1% |
The following abbreviations are used in this report and are defined: | |
PIPE | Private Investment in Public Equity |
REIT | Real Estate Investment Trust |
At May 31, 2021, the fund had cash
collateral of $712,630 and other liquid securities with an aggregate value of $75,894,890 to cover any collateral or margin obligations for securities sold short.
See attached supplemental
information. For more information see notes to financial statements as disclosed in the most recent semiannual or annual report.
7
Supplemental Information
5/31/21 (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
Equity securities, including
restricted equity securities and equity securities sold short, are generally valued at the last sale or official closing price on their primary market or exchange as provided by a third-party pricing service. Equity
securities, for which there were no sales reported that day, are generally valued at the last quoted daily bid quotation on their primary market or exchange as provided by a third-party pricing service. Equity
securities sold short, for which there were no sales reported that day, are generally valued at the last quoted daily ask quotation on their primary market or exchange as provided by a third-party pricing service.
Short-term instruments with a maturity at issuance of 60 days or less may be valued at amortized cost, which approximates market value. Open-end investment companies are generally valued at net asset value per share.
Securities and other assets generally valued on the basis of information from a third-party pricing service may also be valued at a broker/dealer bid quotation. 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, and other market data. The values of foreign securities and other assets and
liabilities expressed in foreign currencies are converted to U.S. dollars using the mean of bid and asked prices for rates provided by a third-party pricing service.
The Board of Trustees has delegated
primary responsibility for determining or causing to be determined the value of the fund’s investments (including any fair valuation) to the adviser pursuant to valuation policies and procedures approved by the
Board. If the adviser determines that reliable market quotations are not readily available, investments are valued at fair value as determined in good faith by the adviser in accordance with such procedures under the
oversight of the Board of Trustees. Under the fund’s valuation policies and procedures, market quotations are not considered to be readily available for most types of debt instruments and floating rate loans and
many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services. In addition, investments may be valued at fair value if the adviser determines
that an investment’s value has been materially affected by events occurring after the close of the exchange or market on which the investment is principally traded (such as foreign exchange or market) and prior
to the determination of the fund’s net asset value, or after the 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. Events that occur after foreign markets close (such as developments in foreign markets and significant movements in the U.S. markets) and prior to the determination of the fund’s net asset
value may be deemed to have a material effect on the value of securities traded in foreign markets. Accordingly, the fund’s foreign equity securities may often be valued at fair value. 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 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 May 31, 2021 in valuing the fund's assets or liabilities:
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
Equity Securities: | ||||
United States | $5,304,426,352 | $5,280,085 | $— | $5,309,706,437 |
Ireland | 53,311,715 | — | — | 53,311,715 |
Canada | 47,023,377 | — | — | 47,023,377 |
United Kingdom | 46,206,720 | — | — | 46,206,720 |
China | 11,285,049 | — | — | 11,285,049 |
Mutual Funds | 110,182,278 | — | — | 110,182,278 |
Total | $5,572,435,491 | $5,280,085 | $— | $5,577,715,576 |
Securities Sold Short | $(34,635,184) | $— | $— | $(34,635,184) |
For further information regarding
security characteristics, see the Portfolio of Investments.
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Supplemental Information (unaudited) –
continued
(2) Securities Lending
Collateral
At May 31, 2021, the value of
securities loaned was $1,704,141. These loans were collateralized by cash of $1,611,936 and U.S. Treasury Obligations (held by the lending agent) of $155,171.
(3) 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 | $44,904,141 | $590,155,460 | $526,489,258 | $1,159 | $(1,160) | $108,570,342 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $27,486 | $— |
(4) Impacts of COVID-19
The pandemic related to the global
spread of novel coronavirus disease (COVID-19), which was first detected in December 2019, has resulted in significant disruptions to global business activity and the global economy, as well as the economies of
individual countries, the financial performance of individual companies and sectors, and the securities and commodities markets in general. Multiple surges in cases globally, the availability and widespread adoption
of vaccines, and the emergence of variant strains of the virus continue to create uncertainty as to the future and long-term impacts resulting from the pandemic including impacts to the prices and liquidity of the
fund's investments and the fund's performance.
9