Quarterly Report
May 31, 2023
MFS® Core Equity Fund
RGI-Q3
Portfolio of Investments
5/31/23 (unaudited)
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 99.1% | ||||
Aerospace & Defense – 2.3% | ||||
Boeing Co. (a) | 130,804 | $26,906,383 | ||
General Dynamics Corp. | 83,917 | 17,134,173 | ||
Honeywell International, Inc. | 189,192 | 36,249,187 | ||
Howmet Aerospace, Inc. | 289,264 | 12,366,036 | ||
Leidos Holdings, Inc. | 281,814 | 21,998,401 | ||
Raytheon Technologies Corp. | 216,567 | 19,954,483 | ||
$134,608,663 | ||||
Alcoholic Beverages – 0.2% | ||||
Constellation Brands, Inc., “A” | 55,207 | $13,413,645 | ||
Apparel Manufacturers – 0.6% | ||||
Deckers Outdoor Corp. (a) | 42,106 | $20,000,350 | ||
VF Corp. | 694,712 | 11,962,941 | ||
$31,963,291 | ||||
Automotive – 0.5% | ||||
Aptiv PLC (a) | 166,148 | $14,634,316 | ||
LKQ Corp. | 273,465 | 14,425,279 | ||
$29,059,595 | ||||
Biotechnology – 0.1% | ||||
Adaptive Biotechnologies Corp. (a) | 356,757 | $2,483,029 | ||
Oxford Nanopore Technologies PLC (a) | 704,050 | 2,366,419 | ||
$4,849,448 | ||||
Broadcasting – 0.9% | ||||
Omnicom Group, Inc. | 130,518 | $11,510,382 | ||
Walt Disney Co. (a) | 346,432 | 30,472,159 | ||
Warner Bros. Discovery, Inc. (a) | 844,376 | 9,524,561 | ||
$51,507,102 | ||||
Brokerage & Asset Managers – 1.7% | ||||
Cboe Global Markets, Inc. | 41,951 | $5,555,152 | ||
Charles Schwab Corp. | 386,566 | 20,368,163 | ||
CME Group, Inc. | 116,532 | 20,830,095 | ||
Invesco Ltd. | 1,320,827 | 18,993,492 | ||
KKR & Co., Inc. | 433,527 | 22,322,305 | ||
Raymond James Financial, Inc. | 118,272 | 10,685,875 | ||
$98,755,082 | ||||
Business Services – 2.5% | ||||
Accenture PLC, “A” | 171,298 | $52,403,484 | ||
Amdocs Ltd. | 130,298 | 12,270,163 | ||
Fidelity National Information Services, Inc. | 117,885 | 6,432,984 | ||
Fiserv, Inc. (a) | 120,791 | 13,551,542 | ||
Morningstar, Inc. | 46,592 | 9,537,382 | ||
Thoughtworks Holding, Inc. (a) | 645,988 | 5,322,941 | ||
TriNet Group, Inc. (a) | 114,077 | 10,138,023 | ||
Tyler Technologies, Inc. (a) | 37,563 | 14,911,009 | ||
WNS (Holdings) Ltd., ADR (a) | 292,551 | 22,731,213 | ||
$147,298,741 | ||||
Cable TV – 0.5% | ||||
Cable One, Inc. | 44,857 | $27,444,858 |
1
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Chemicals – 0.4% | ||||
Eastman Chemical Co. | 179,796 | $13,860,474 | ||
Element Solutions, Inc. | 334,877 | 6,004,344 | ||
$19,864,818 | ||||
Computer Software – 11.0% | ||||
Adobe Systems, Inc. (a) | 95,760 | $40,007,570 | ||
Autodesk, Inc. (a) | 103,603 | 20,657,402 | ||
Black Knight, Inc. (a) | 214,646 | 12,402,246 | ||
Cadence Design Systems, Inc. (a) | 193,382 | 44,653,838 | ||
Check Point Software Technologies Ltd. (a) | 66,270 | 8,271,159 | ||
Dun & Bradstreet Holdings, Inc. | 1,960,433 | 19,604,330 | ||
Flywire Corp. (a) | 220,227 | 6,615,619 | ||
Microsoft Corp. (s) | 1,272,234 | 417,788,923 | ||
NICE Systems Ltd., ADR (a) | 91,132 | 18,767,724 | ||
Salesforce, Inc. (a) | 226,994 | 50,705,920 | ||
$639,474,731 | ||||
Computer Software - Systems – 8.5% | ||||
Apple, Inc. (s) | 2,295,244 | $406,831,999 | ||
Block, Inc., “A” (a) | 187,540 | 11,325,541 | ||
Five9, Inc. (a) | 80,323 | 5,310,153 | ||
Rapid7, Inc. (a) | 167,604 | 7,998,063 | ||
ServiceNow, Inc. (a) | 94,182 | 51,308,470 | ||
Zebra Technologies Corp., “A” (a) | 45,476 | 11,940,633 | ||
$494,714,859 | ||||
Construction – 1.3% | ||||
AvalonBay Communities, Inc., REIT | 108,825 | $18,933,373 | ||
AZEK Co., Inc. (a) | 397,445 | 9,240,596 | ||
Masco Corp. | 288,311 | 13,931,188 | ||
Sherwin-Williams Co. | 79,099 | 18,017,170 | ||
Vulcan Materials Co. | 87,389 | 17,084,550 | ||
$77,206,877 | ||||
Consumer Products – 1.4% | ||||
Colgate-Palmolive Co. | 308,259 | $22,928,304 | ||
International Flavors & Fragrances, Inc. | 110,776 | 8,561,877 | ||
Kenvue, Inc. (a) | 260,251 | 6,529,698 | ||
Kimberly-Clark Corp. | 106,160 | 14,255,165 | ||
Procter & Gamble Co. | 185,581 | 26,445,292 | ||
$78,720,336 | ||||
Consumer Services – 0.7% | ||||
Booking Holdings, Inc. (a) | 8,576 | $21,515,211 | ||
Bright Horizons Family Solutions, Inc. (a) | 161,498 | 13,824,229 | ||
Grand Canyon Education, Inc. (a) | 71,712 | 7,512,549 | ||
$42,851,989 | ||||
Containers – 0.2% | ||||
Crown Holdings, Inc. | 122,554 | $9,342,291 | ||
Electrical Equipment – 1.8% | ||||
AMETEK, Inc. | 237,407 | $34,440,633 | ||
Amphenol Corp., “A” | 188,873 | 14,250,468 | ||
Johnson Controls International PLC | 445,415 | 26,591,276 | ||
nVent Electric PLC | 203,635 | 8,833,686 | ||
Sensata Technologies Holding PLC | 314,762 | 13,068,918 | ||
TE Connectivity Ltd. | 37,372 | 4,577,323 | ||
$101,762,304 |
2
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Electronics – 6.0% | ||||
Advanced Micro Devices (a) | 258,114 | $30,511,656 | ||
Analog Devices, Inc. | 208,221 | 36,998,790 | ||
Applied Materials, Inc. | 345,389 | 46,040,354 | ||
Broadcom, Inc. | 100,254 | 81,001,222 | ||
Lam Research Corp. | 67,739 | 41,774,641 | ||
Marvell Technology, Inc. | 669,780 | 39,175,432 | ||
Monolithic Power Systems, Inc. | 33,971 | 16,642,733 | ||
NXP Semiconductors N.V. | 163,242 | 29,236,642 | ||
Texas Instruments, Inc. | 147,931 | 25,722,242 | ||
$347,103,712 | ||||
Energy - Independent – 1.6% | ||||
ConocoPhillips | 343,396 | $34,099,223 | ||
Diamondback Energy, Inc. | 179,950 | 22,880,642 | ||
Hess Corp. | 125,512 | 15,898,605 | ||
Phillips 66 | 123,865 | 11,347,273 | ||
Valero Energy Corp. | 97,547 | 10,441,431 | ||
$94,667,174 | ||||
Energy - Integrated – 2.0% | ||||
Exxon Mobil Corp. (s) | 1,126,893 | $115,145,927 | ||
Energy - Renewables – 0.1% | ||||
Enphase Energy, Inc. (a) | 31,293 | $5,441,227 | ||
Generac Holdings, Inc. (a) | 20,190 | 2,199,095 | ||
$7,640,322 | ||||
Engineering - Construction – 0.5% | ||||
APi Group, Inc. (a) | 537,998 | $12,158,755 | ||
Jacobs Solutions, Inc. | 161,117 | 17,658,423 | ||
$29,817,178 | ||||
Entertainment – 0.2% | ||||
Spotify Technology S.A. (a) | 25,956 | $3,864,848 | ||
Vivid Seats, Inc., “A” (a)(l) | 693,903 | 5,072,431 | ||
$8,937,279 | ||||
Food & Beverages – 2.6% | ||||
Archer Daniels Midland Co. | 204,334 | $14,436,197 | ||
Coca-Cola Co. | 162,750 | 9,709,665 | ||
Coca-Cola Europacific Partners PLC | 219,370 | 13,686,495 | ||
J.M. Smucker Co. | 66,902 | 9,807,164 | ||
Mondelez International, Inc. | 574,198 | 42,151,875 | ||
Oatly Group AB, ADR (a)(l) | 2,352,190 | 3,716,460 | ||
PepsiCo, Inc. | 320,412 | 58,427,128 | ||
$151,934,984 | ||||
Forest & Paper Products – 0.5% | ||||
Rayonier, Inc., REIT | 1,041,230 | $30,528,864 | ||
Gaming & Lodging – 0.6% | ||||
International Game Technology PLC | 456,522 | $11,198,485 | ||
Las Vegas Sands Corp. (a) | 82,290 | 4,536,648 | ||
Marriott International, Inc., “A” | 96,797 | 16,241,568 | ||
$31,976,701 |
3
Portfolio of Investments (unaudited) �� continued
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
General Merchandise – 0.8% | ||||
Dollar General Corp. | 144,721 | $29,101,946 | ||
Dollar Tree, Inc. (a) | 145,490 | 19,623,691 | ||
$48,725,637 | ||||
Health Maintenance Organizations – 1.1% | ||||
Cigna Group | 257,649 | $63,744,939 | ||
Insurance – 3.5% | ||||
Aon PLC | 178,086 | $54,902,133 | ||
Arthur J. Gallagher & Co. | 166,783 | 33,411,638 | ||
Assurant, Inc. | 68,116 | 8,173,239 | ||
Chubb Ltd. | 177,813 | 33,037,655 | ||
Hartford Financial Services Group, Inc. | 241,138 | 16,522,776 | ||
MetLife, Inc. | 247,985 | 12,287,657 | ||
Reinsurance Group of America, Inc. | 75,609 | 10,585,260 | ||
Voya Financial, Inc. | 223,066 | 15,123,875 | ||
Willis Towers Watson PLC | 90,381 | 19,779,882 | ||
$203,824,115 | ||||
Internet – 4.6% | ||||
Alphabet, Inc., “A” (a)(s) | 2,073,557 | $254,777,948 | ||
Gartner, Inc. (a) | 34,037 | 11,669,926 | ||
$266,447,874 | ||||
Leisure & Toys – 0.8% | ||||
Electronic Arts, Inc. | 205,136 | $26,257,408 | ||
Funko, Inc., “A” (a) | 668,132 | 8,151,210 | ||
Take-Two Interactive Software, Inc. (a) | 85,602 | 11,789,964 | ||
$46,198,582 | ||||
Machinery & Tools – 2.1% | ||||
Dover Corp. | 110,757 | $14,767,231 | ||
Eaton Corp. PLC | 228,944 | 40,271,250 | ||
Flowserve Corp. | 165,032 | 5,371,792 | ||
Ingersoll Rand, Inc. | 235,384 | 13,336,857 | ||
PACCAR, Inc. | 194,221 | 13,358,520 | ||
Regal Rexnord Corp. | 86,277 | 11,206,520 | ||
Wabtec Corp. | 216,137 | 20,020,770 | ||
$118,332,940 | ||||
Major Banks – 3.1% | ||||
JPMorgan Chase & Co. | 653,093 | $88,631,251 | ||
Morgan Stanley | 417,357 | 34,123,108 | ||
PNC Financial Services Group, Inc. | 152,742 | 17,692,106 | ||
Regions Financial Corp. | 950,193 | 16,409,833 | ||
Wells Fargo & Co. | 573,255 | 22,821,282 | ||
$179,677,580 | ||||
Medical & Health Technology & Services – 1.8% | ||||
Encompass Health Corp. | 287,127 | $17,807,617 | ||
ICON PLC (a) | 151,942 | 32,368,204 | ||
McKesson Corp. | 104,766 | 40,946,743 | ||
Veeva Systems, Inc. (a) | 91,691 | 15,193,199 | ||
$106,315,763 | ||||
Medical Equipment – 4.9% | ||||
Agilent Technologies, Inc. | 143,086 | $16,550,758 | ||
Becton, Dickinson and Co. | 220,651 | 53,344,586 | ||
Boston Scientific Corp. (a) | 1,172,495 | 60,360,043 |
4
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Medical Equipment – continued | ||||
Envista Holdings Corp. (a) | 300,789 | $9,592,161 | ||
Maravai Lifesciences Holdings, Inc., “A” (a) | 1,621,535 | 20,820,509 | ||
Medtronic PLC | 748,609 | 61,954,881 | ||
Quidel Corp. (a) | 203,752 | 17,347,445 | ||
Shockwave Medical, Inc. (a) | 17,073 | 4,696,612 | ||
STERIS PLC | 181,218 | 36,238,163 | ||
$280,905,158 | ||||
Natural Gas - Pipeline – 0.2% | ||||
Cheniere Energy, Inc. | 85,971 | $12,016,167 | ||
Network & Telecom – 0.7% | ||||
Equinix, Inc., REIT | 28,027 | $20,895,530 | ||
Motorola Solutions, Inc. | 65,065 | 18,343,125 | ||
$39,238,655 | ||||
Oil Services – 0.5% | ||||
Cactus, Inc., “A” | 302,409 | $9,550,076 | ||
Schlumberger Ltd. | 457,852 | 19,609,801 | ||
$29,159,877 | ||||
Other Banks & Diversified Financials – 3.4% | ||||
American Express Co. | 135,962 | $21,558,135 | ||
First Interstate BancSystem, Inc. | 257,936 | 5,687,489 | ||
M&T Bank Corp. | 160,244 | 19,094,675 | ||
Moody's Corp. | 81,950 | 25,968,316 | ||
Northern Trust Corp. | 100,603 | 7,235,368 | ||
SLM Corp. | 960,812 | 14,661,991 | ||
United Community Bank, Inc. | 242,122 | 5,474,378 | ||
Visa, Inc., “A” | 447,986 | 99,018,345 | ||
$198,698,697 | ||||
Pharmaceuticals – 6.6% | ||||
Eli Lilly & Co. | 161,915 | $69,536,016 | ||
Johnson & Johnson | 477,860 | 74,096,972 | ||
Merck & Co., Inc. | 595,779 | 65,779,959 | ||
Organon & Co. | 668,284 | 12,958,027 | ||
Pfizer, Inc. | 1,397,094 | 53,117,514 | ||
Vertex Pharmaceuticals, Inc. (a) | 178,505 | 57,758,863 | ||
Zoetis, Inc. | 293,840 | 47,898,858 | ||
$381,146,209 | ||||
Pollution Control – 0.6% | ||||
GFL Environmental, Inc. | 938,306 | $33,910,379 | ||
Railroad & Shipping – 1.0% | ||||
Canadian Pacific Kansas City Ltd. | 431,918 | $32,912,151 | ||
CSX Corp. | 341,227 | 10,465,432 | ||
Union Pacific Corp. | 79,940 | 15,390,049 | ||
$58,767,632 | ||||
Real Estate – 1.3% | ||||
Broadstone Net Lease, Inc., REIT | 761,181 | $11,935,318 | ||
Empire State Realty Trust, REIT, “A” | 1,400,988 | 8,644,096 | ||
Extra Space Storage, Inc., REIT | 93,631 | 13,508,144 | ||
Jones Lang LaSalle, Inc. (a) | 47,713 | 6,696,043 | ||
Prologis, Inc., REIT | 52,618 | 6,553,572 | ||
Spirit Realty Capital, Inc., REIT | 373,188 | 14,576,723 |
5
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Real Estate – continued | ||||
Sun Communities, Inc., REIT | 97,917 | $12,399,230 | ||
$74,313,126 | ||||
Restaurants – 1.3% | ||||
Starbucks Corp. | 552,637 | $53,959,476 | ||
Wendy's Co. | 1,035,778 | 22,797,474 | ||
$76,756,950 | ||||
Specialty Chemicals – 1.6% | ||||
Air Products & Chemicals, Inc. | 77,892 | $20,963,853 | ||
Chemours Co. | 406,943 | 10,779,920 | ||
Corteva, Inc. | 173,299 | 9,269,763 | ||
DuPont de Nemours, Inc. | 284,364 | 19,106,417 | ||
Linde PLC | 73,209 | 25,891,095 | ||
Tronox Holdings PLC | 776,718 | 8,264,280 | ||
$94,275,328 | ||||
Specialty Stores – 5.5% | ||||
Amazon.com, Inc. (a)(s) | 1,550,261 | $186,930,471 | ||
Home Depot, Inc. | 231,697 | 65,674,515 | ||
Ross Stores, Inc. | 351,474 | 36,419,736 | ||
Target Corp. | 234,688 | 30,727,700 | ||
$319,752,422 | ||||
Telecommunications - Wireless – 1.3% | ||||
Liberty Broadband Corp. (a) | 340,604 | $25,238,756 | ||
SBA Communications Corp., REIT | 119,977 | 26,608,499 | ||
T-Mobile US, Inc. (a) | 179,684 | 24,661,629 | ||
$76,508,884 | ||||
Telephone Services – 0.1% | ||||
Altice USA, Inc., “A” (a) | 1,666,318 | $4,265,774 | ||
Tobacco – 0.5% | ||||
Philip Morris International, Inc. | 302,360 | $27,215,424 | ||
Trucking – 0.3% | ||||
Saia, Inc. (a) | 53,506 | $15,204,265 | ||
Utilities - Electric Power – 2.8% | ||||
CenterPoint Energy, Inc. | 678,003 | $19,126,465 | ||
Constellation Energy | 99,447 | 8,355,537 | ||
Dominion Energy, Inc. | 109,453 | 5,503,297 | ||
Duke Energy Corp. | 168,810 | 15,073,045 | ||
Evergy, Inc. | 88,961 | 5,146,394 | ||
Exelon Corp. | 298,339 | 11,829,141 | ||
FirstEnergy Corp. | 146,268 | 5,468,960 | ||
NextEra Energy, Inc. | 428,228 | 31,457,629 | ||
PG&E Corp. (a) | 1,619,819 | 27,439,734 | ||
PPL Corp. | 220,081 | 5,766,122 | ||
Sempra Energy | 67,026 | 9,620,242 | ||
Xcel Energy, Inc. | 290,141 | 18,943,306 | ||
$163,729,872 | ||||
Total Common Stocks | $5,739,723,020 |
6
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||
Investment Companies (h) – 0.7% | ||||
Money Market Funds – 0.7% | ||||
MFS Institutional Money Market Portfolio, 4.88% (v) | 41,375,430 | $41,371,293 | ||
Collateral for Securities Loaned – 0.0% | ||||
State Street Navigator Securities Lending Government Money Market Portfolio, 5.11% (j) | 2,210,313 | $2,210,313 | ||
Securities Sold Short – (0.2)% | ||||
Medical & Health Technology & Services – (0.1)% | ||||
Healthcare Services Group, Inc. | (435,128) | $(5,878,580) | ||
Telecommunications - Wireless – (0.1)% | ||||
Crown Castle, Inc., REIT | (44,300) | $(5,015,203) | ||
Total Securities Sold Short | $(10,893,783) | |||
Other Assets, Less Liabilities – 0.4% | 21,843,057 | |||
Net Assets – 100.0% | $5,794,253,900 |
(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 $41,371,293 and $5,741,933,333, 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. | |||
(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. |
The following abbreviations are used in this report and are defined: | |
ADR | American Depositary Receipt |
REIT | Real Estate Investment Trust |
At May 31, 2023, the fund had cash collateral of $16,021 and other liquid securities with an aggregate value of $36,716,866 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
5/31/23 (unaudited)
The fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services - Investment Companies.
(1) Investment Valuations
Subject to its oversight, the fund's Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of the fund’s investments to MFS as the fund's adviser, pursuant to the fund’s valuation policy and procedures which have been adopted by the adviser and approved by the Board. In accordance with Rule 2a-5 under the Investment Company Act of 1940, the Board of Trustees designated the adviser as the “valuation designee” of the fund. If the adviser, as valuation designee, determines that reliable market quotations are not readily available for an investment, the investment is valued at fair value as determined in good faith by the adviser in accordance with the adviser’s fair valuation policy and procedures.
Under the fund's valuation policy and procedures, 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. 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.
Under the fund’s valuation policy and procedures, market quotations are not considered to be readily available for debt instruments, floating rate loans, and many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services or otherwise determined by the adviser in accordance with the adviser’s fair valuation policy and procedures. Securities and other assets generally valued on the basis of information from a third-party pricing service may also be valued at a broker/dealer bid quotation. In determining values, third-party pricing services can utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics, spreads and other market data. An investment may also be valued at fair value if the adviser determines that the investment’s value has been materially affected by events occurring after the close of the exchange or market on which the investment is principally traded (such as foreign exchange or market) and prior to the determination of the fund’s net asset value, or after the halt of trading of a specific security where trading does not resume prior to the close of the exchange or market on which the security is principally traded. 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 significant unobservable inputs, which may include the adviser's own assumptions in determining the fair value of investments. The following is a summary of the levels used as of May 31, 2023 in valuing the fund's assets and liabilities:
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
Equity Securities | $5,739,723,020 | $— | $— | $5,739,723,020 |
Mutual Funds | 43,581,606 | — | — | 43,581,606 |
Total | $5,783,304,626 | $— | $— | $5,783,304,626 |
Securities Sold Short | $(10,893,783) | $— | $— | $(10,893,783) |
For further information regarding security characteristics, see the Portfolio of Investments.
8
Supplemental Information (unaudited) – continued
(2) Investments in Affiliated Issuers
An affiliated issuer may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. For the purposes of this report, the following were affiliated issuers:
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $86,682,431 | $554,608,596 | $599,895,602 | $(17,474) | $(6,658) | $41,371,293 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $1,788,114 | $— |
9