Quarterly Report
January 31, 2020
MFS® Intermediate Income Trust
Portfolio of Investments
1/31/20 (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 ($) | ||
| Bonds – 99.6% | ||||
| Aerospace – 0.3% | ||||
| Boeing Co., 2.95%, 2/01/2030 | $ | 1,500,000 | $1,544,561 | |
| Asset-Backed & Securitized – 2.9% | ||||
| Chesapeake Funding II LLC, 2017-3A, “A2”, FLR, 2.016% (LIBOR - 1mo. + 0.34%), 8/15/2029 (n) | $ | 1,775,520 | $1,776,751 | |
| Commercial Mortgage Trust, 2017-COR2, “A3”, 3.51%, 9/10/2050 | 1,676,352 | 1,836,568 | ||
| Enterprise Fleet Financing LLC, 2017-1, “A2”, 2.13%, 7/20/2022 (n) | 54,240 | 54,252 | ||
| Falcon Franchise Loan LLC, 9.989%, 1/05/2023 (i)(n) | 62,344 | 4,141 | ||
| GS Mortgage Securities Trust, 4.592%, 8/10/2043 (n) | 2,568,340 | 2,583,583 | ||
| JPMorgan Chase & Co., 4.717%, 2/15/2046 (n) | 2,148,243 | 2,185,367 | ||
| Loomis, Sayles & Co., CLO, 2015-2A, “A1R”, FLR, 2.731% (LIBOR - 3mo. + 0.9%), 4/15/2028 (n) | 1,117,883 | 1,116,281 | ||
| Shackleton CLO Ltd., 2015-8A, “A1R”, FLR, 2.746% (LIBOR - 3mo. + 1.51%), 10/20/2027 (n) | 1,989,166 | 1,989,470 | ||
| Tricon American Homes Trust, 2015-SFR1, “1A”, 2.589%, 11/17/2033 (n) | 1,259,000 | 1,262,532 | ||
| UBS Commercial Mortgage Trust, 2017-C1, “A4”, 3.544%, 11/15/2050 | 875,000 | 958,491 | ||
| $13,767,436 | ||||
| Automotive – 2.3% | ||||
| BMW U.S. Capital LLC, 3.1%, 4/12/2021 (n) | $ | 1,770,000 | $1,799,566 | |
| Ford Motor Credit Co. LLC, 5.085%, 1/07/2021 | 1,074,000 | 1,102,441 | ||
| Ford Motor Credit Co. LLC, 5.75%, 2/01/2021 | 1,250,000 | 1,292,178 | ||
| General Motors Financial Co., Inc., 3.95%, 4/13/2024 | 2,700,000 | 2,847,952 | ||
| Hyundai Capital America, 3.75%, 7/08/2021 (n) | 1,769,000 | 1,810,847 | ||
| Volkswagen Group of America Co., 2.85%, 9/26/2024 (n) | 1,765,000 | 1,819,684 | ||
| $10,672,668 | ||||
| Brokerage & Asset Managers – 2.1% | ||||
| E*TRADE Financial Corp., 2.95%, 8/24/2022 | $ | 3,500,000 | $3,580,688 | |
| Low Income Investment Fund, 3.386%, 7/01/2026 | 705,000 | 733,238 | ||
| Low Income Investment Fund, 3.711%, 7/01/2029 | 1,905,000 | 2,008,081 | ||
| TD Ameritrade Holding Corp., 3.3%, 4/01/2027 | 3,150,000 | 3,380,753 | ||
| $9,702,760 | ||||
| Building – 0.7% | ||||
| Martin Marietta Materials, Inc., 3.5%, 12/15/2027 | $ | 2,946,000 | $3,163,015 | |
| Business Services – 0.6% | ||||
| Equinix, Inc., 2.9%, 11/18/2026 | $ | 3,000,000 | $3,061,020 | |
| Cable TV – 0.9% | ||||
| Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 4.908%, 7/23/2025 | $ | 1,350,000 | $1,513,870 | |
| Time Warner Cable, Inc., 4%, 9/01/2021 | 2,770,000 | 2,841,914 | ||
| $4,355,784 | ||||
| Chemicals – 0.9% | ||||
| Sherwin-Williams Co., 3.125%, 6/01/2024 | $ | 4,000,000 | $4,191,701 | |
| Computer Software – 1.2% | ||||
| Dell International LLC/EMC Corp., 4.9%, 10/01/2026 (n) | $ | 2,054,000 | $2,286,631 | |
| Microsoft Corp., 3.125%, 11/03/2025 | 3,110,000 | 3,340,614 | ||
| $5,627,245 | ||||
| Computer Software - Systems – 0.6% | ||||
| Apple, Inc., 3.35%, 2/09/2027 | $ | 2,700,000 | $2,929,558 | |
1
Portfolio of Investments (unaudited) –
continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Conglomerates – 2.9% | ||||
| Roper Technologies, Inc., 2.8%, 12/15/2021 | $ | 651,000 | $662,593 | |
| United Technologies Corp., 3.1%, 6/01/2022 | 947,000 | 977,955 | ||
| United Technologies Corp., 3.65%, 8/16/2023 | 3,321,000 | 3,534,277 | ||
| United Technologies Corp., 3.125%, 5/04/2027 | 2,000,000 | 2,143,508 | ||
| United Technologies Corp., 4.125%, 11/16/2028 | 1,753,000 | 2,017,855 | ||
| Westinghouse Air Brake Technologies Corp., 4.95%, 9/15/2028 | 3,760,000 | 4,251,239 | ||
| $13,587,427 | ||||
| Consumer Products – 1.4% | ||||
| Reckitt Benckiser Treasury Services PLC, 3.625%, 9/21/2023 (n) | $ | 2,274,000 | $2,395,706 | |
| Reckitt Benckiser Treasury Services PLC, 2.75%, 6/26/2024 (n) | 4,000,000 | 4,137,554 | ||
| $6,533,260 | ||||
| Consumer Services – 2.3% | ||||
| Alibaba Group Holding Ltd., 2.8%, 6/06/2023 | $ | 1,605,000 | $1,642,629 | |
| Booking Holdings, Inc., 3.55%, 3/15/2028 | 2,737,000 | 2,986,543 | ||
| Conservation Fund, 3.474%, 12/15/2029 | 563,000 | 579,430 | ||
| Experian Finance PLC, 2.75%, 3/08/2030 (n) | 2,636,000 | 2,678,704 | ||
| Toll Road Investors Partnership II LP, Capital Appreciation, 0%, 2/15/2026 (n) | 480,000 | 366,373 | ||
| Toll Road Investors Partnership II LP, Capital Appreciation, 0%, 2/15/2027 (n) | 1,525,000 | 1,111,361 | ||
| Toll Road Investors Partnership II LP, Capital Appreciation, 0%, 2/15/2029 (n) | 1,392,000 | 922,105 | ||
| Toll Road Investors Partnership II LP, Capital Appreciation, 0%, 2/15/2031 (n) | 480,000 | 288,643 | ||
| $10,575,788 | ||||
| Electronics – 1.1% | ||||
| Broadcom Corp./Broadcom Cayman Finance Ltd., 3.875%, 1/15/2027 | $ | 3,900,000 | $4,115,496 | |
| Microchip Technology, Inc., 3.922%, 6/01/2021 | 1,213,000 | 1,242,446 | ||
| $5,357,942 | ||||
| Emerging Market Quasi-Sovereign – 0.2% | ||||
| Corporacion Financiera de Desarrollo S.A. (Republic of Peru), 4.75%, 2/08/2022 (n) | $ | 228,000 | $239,061 | |
| Sinopec Capital (2013) Ltd. (People's Republic of China), 3.125%, 4/24/2023 (n) | 733,000 | 752,833 | ||
| $991,894 | ||||
| Emerging Market Sovereign – 0.2% | ||||
| Republic of Poland, 5%, 3/23/2022 | $ | 772,000 | $824,048 | |
| Energy - Integrated – 0.7% | ||||
| BP Capital Markets PLC, 4.742%, 3/11/2021 | $ | 1,810,000 | $1,867,369 | |
| Eni S.p.A., 4%, 9/12/2023 (n) | 1,327,000 | 1,413,677 | ||
| $3,281,046 | ||||
| Financial Institutions – 0.8% | ||||
| Avolon Holdings Funding Ltd., 3.95%, 7/01/2024 (n) | $ | 3,123,000 | $3,288,363 | |
| Avolon Holdings Funding Ltd., 3.25%, 2/15/2027 (n) | 583,000 | 590,089 | ||
| $3,878,452 | ||||
| Food & Beverages – 2.6% | ||||
| Anheuser-Busch InBev Worldwide, Inc., 3.3%, 2/01/2023 | $ | 3,198,000 | $3,342,003 | |
| Conagra Brands, Inc., 4.6%, 11/01/2025 | 2,987,000 | 3,364,901 | ||
| Constellation Brands, Inc., 4.4%, 11/15/2025 | 3,306,000 | 3,691,758 | ||
| Wm. Wrigley Jr. Co., 3.375%, 10/21/2020 (n) | 1,876,000 | 1,894,815 | ||
| $12,293,477 | ||||
| Insurance – 1.3% | ||||
| American International Group, Inc., 3.75%, 7/10/2025 | $ | 2,808,000 | $3,043,623 | |
| American International Group, Inc., 3.9%, 4/01/2026 | 2,850,000 | 3,103,005 | ||
| $6,146,628 | ||||
2
Portfolio of Investments (unaudited) –
continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Insurance - Property & Casualty – 1.4% | ||||
| Allied World Assurance Co. Holdings Ltd., 4.35%, 10/29/2025 | $ | 3,110,000 | $3,365,481 | |
| Fairfax Financial Holdings Ltd., 4.85%, 4/17/2028 | 2,971,000 | 3,333,406 | ||
| $6,698,887 | ||||
| International Market Quasi-Sovereign – 0.5% | ||||
| Dexia Credit Local S.A. (Kingdom of Belgium), 1.875%, 9/15/2021 (n) | $ | 2,510,000 | $2,519,669 | |
| Internet – 0.3% | ||||
| Baidu, Inc., 3.875%, 9/29/2023 | $ | 1,361,000 | $1,433,770 | |
| Machinery & Tools – 0.8% | ||||
| CNH Industrial Capital LLC, 4.2%, 1/15/2024 | $ | 472,000 | $504,774 | |
| CNH Industrial Capital LLC, 3.85%, 11/15/2027 | 3,066,000 | 3,246,849 | ||
| $3,751,623 | ||||
| Major Banks – 12.8% | ||||
| Bank of America Corp., 3.124% to 1/20/2022, FLR (LIBOR - 3mo. + 1.16%) to 1/20/2023 | $ | 5,400,000 | $5,529,121 | |
| Bank of America Corp., 4.125%, 1/22/2024 | 2,876,000 | 3,123,520 | ||
| Bank of New York Mellon Corp., 3.5%, 4/28/2023 | 3,446,000 | 3,639,848 | ||
| Barclays PLC, 4.61%, 2/15/2023 | 3,857,000 | 4,041,830 | ||
| Credit Suisse Group AG, 3.574%, 1/09/2023 (n) | 1,500,000 | 1,544,548 | ||
| Credit Suisse Group AG, 6.5%, 8/08/2023 (n) | 915,000 | 1,023,656 | ||
| Goldman Sachs Group, Inc., 5.75%, 1/24/2022 | 1,924,000 | 2,069,198 | ||
| Goldman Sachs Group, Inc., 3%, 4/26/2022 | 1,720,000 | 1,745,575 | ||
| Goldman Sachs Group, Inc., 2.908% to 6/05/2022, FLR (LIBOR - 3mo. + 1.053%) to 6/05/2023 | 1,750,000 | 1,788,797 | ||
| HSBC Holdings PLC, 3.262% to 3/13/2022, FLR (LIBOR - 3mo. + 1.055%) to 3/13/2023 | 4,000,000 | 4,103,463 | ||
| HSBC Holdings PLC, 3.033% to 11/22/2022, FLR (LIBOR - 3mo. + 0.923%) to 11/22/2023 | 1,500,000 | 1,541,090 | ||
| ING Bank N.V., 5.8%, 9/25/2023 (n) | 2,912,000 | 3,261,746 | ||
| JPMorgan Chase & Co., 4.625%, 5/10/2021 | 2,890,000 | 2,996,468 | ||
| JPMorgan Chase & Co., 3.125%, 1/23/2025 | 3,500,000 | 3,692,520 | ||
| Lloyds Bank PLC, 3.75%, 1/11/2027 | 1,400,000 | 1,502,592 | ||
| Mitsubishi UFJ Financial Group, Inc., 2.95%, 3/01/2021 | 656,000 | 664,879 | ||
| Morgan Stanley, 3.875%, 1/27/2026 | 5,400,000 | 5,913,955 | ||
| NatWest Markets PLC, 3.625%, 9/29/2022 (n) | 800,000 | 832,942 | ||
| Royal Bank of Scotland Group, PLC, FLR, 4.892% (LIBOR - 3mo. + 1.754%), 5/18/2029 | 2,442,000 | 2,827,747 | ||
| Sumitomo Mitsui Financial Group, Inc., 3.102%, 1/17/2023 | 1,145,000 | 1,187,373 | ||
| UBS Group Funding (Switzerland) AG, 4.253%, 3/23/2028 (n) | 2,449,000 | 2,725,003 | ||
| UBS Group Funding Ltd., 3%, 4/15/2021 (n) | 2,505,000 | 2,543,546 | ||
| UBS Group Funding Ltd., FLR, 3.374% (LIBOR - 3mo. + 1.44%), 9/24/2020 (n) | 1,680,000 | 1,693,942 | ||
| $59,993,359 | ||||
| Medical & Health Technology & Services – 1.2% | ||||
| Cigna Corp., FLR, 2.549% (LIBOR - 3mo. + 0.65%), 9/17/2021 | $ | 2,000,000 | $2,000,222 | |
| HCA, Inc., 4.125%, 6/15/2029 | 3,215,000 | 3,479,257 | ||
| $5,479,479 | ||||
| Medical Equipment – 0.4% | ||||
| Abbott Laboratories, 3.4%, 11/30/2023 | $ | 1,600,000 | $1,700,510 | |
| Metals & Mining – 0.8% | ||||
| Glencore Funding LLC, 4.125%, 5/30/2023 (n) | $ | 1,518,000 | $1,596,862 | |
| Glencore Funding LLC, 3.875%, 10/27/2027 (n) | 1,887,000 | 1,974,511 | ||
| $3,571,373 | ||||
| Midstream – 1.1% | ||||
| MPLX LP, 3.5%, 12/01/2022 (n) | $ | 1,584,000 | $1,639,519 | |
| MPLX LP, 4%, 3/15/2028 | 3,395,000 | 3,555,530 | ||
| $5,195,049 | ||||
3
Portfolio of Investments (unaudited) –
continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Mortgage-Backed – 1.0% | ||||
| Fannie Mae, 5%, 12/01/2020 | $ | 587 | $620 | |
| Fannie Mae, 6.5%, 11/01/2031 | 630,816 | 728,752 | ||
| Freddie Mac, 4.224%, 3/25/2020 | 637,004 | 636,737 | ||
| Freddie Mac, 5.5%, 6/01/2020 | 10,496 | 10,514 | ||
| Freddie Mac, 6%, 5/01/2021 - 8/01/2034 | 13,858 | 15,232 | ||
| Freddie Mac, 3.064%, 8/25/2024 | 1,457,127 | 1,539,383 | ||
| Freddie Mac, 3.187%, 9/25/2027 | 550,000 | 601,221 | ||
| Freddie Mac, 4.06%, 10/25/2028 | 780,000 | 902,991 | ||
| Ginnie Mae, 6%, 6/15/2033 - 10/15/2036 | 406,693 | 464,153 | ||
| Ginnie Mae, 5.87%, 4/20/2058 | 24,459 | 27,823 | ||
| $4,927,426 | ||||
| Municipals – 4.2% | ||||
| Bridgeview, IL, Stadium and Redevelopment Projects, 5.06%, 12/01/2025 | $ | 4,000,000 | $4,185,840 | |
| Gainesville, TX, Hospital District, “A”, 5.711%, 8/15/2033 | 2,330,000 | 2,711,654 | ||
| Howard University, 2.757%, 10/01/2027 | 1,250,000 | 1,251,726 | ||
| Michigan Finance Authority Hospital Refunding Rev. (Trinity Health Credit Group), “T”, 3.084%, 12/01/2034 | 2,500,000 | 2,625,075 | ||
| New Jersey Economic Development Authority State Pension Funding Rev., Capital Appreciation, “B”, 0%, 2/15/2023 | 3,704,000 | 3,496,280 | ||
| Puerto Rico Electric Power Authority Rev., “RR”, 5%, 7/01/2022 | 1,675,000 | 1,704,480 | ||
| Syracuse, NY, Industrial Development Agency PILOT Rev. (Carousel Center Project), “B”, 5%, 1/01/2036 | 3,635,000 | 3,768,404 | ||
| $19,743,459 | ||||
| Oils – 0.8% | ||||
| Marathon Petroleum Corp., 3.625%, 9/15/2024 | $ | 1,003,000 | $1,062,703 | |
| Valero Energy Corp., 3.4%, 9/15/2026 | 2,353,000 | 2,496,342 | ||
| $3,559,045 | ||||
| Other Banks & Diversified Financials – 0.8% | ||||
| BBVA USA, 2.875%, 6/29/2022 | $ | 1,826,000 | $1,867,673 | |
| SunTrust Banks, Inc., 2.7%, 1/27/2022 | 1,803,000 | 1,834,338 | ||
| $3,702,011 | ||||
| Pharmaceuticals – 1.2% | ||||
| Allergan Funding SCS, 3.45%, 3/15/2022 | $ | 3,000,000 | $3,088,178 | |
| Bristol-Myers Squibb Co., 2.75%, 2/15/2023 (n) | 2,628,000 | 2,704,176 | ||
| $5,792,354 | ||||
| Retailers – 0.6% | ||||
| Alimentation Couche-Tard, Inc., 2.7%, 7/26/2022 (n) | $ | 2,700,000 | $2,747,083 | |
| Supranational – 0.7% | ||||
| Corporacion Andina de Fomento, 4.375%, 6/15/2022 | $ | 2,950,000 | $3,106,291 | |
| Telecommunications - Wireless – 1.3% | ||||
| American Tower Corp., REIT, 3.55%, 7/15/2027 | $ | 4,000,000 | $4,271,887 | |
| Crown Castle International Corp., 3.65%, 9/01/2027 | 947,000 | 1,022,513 | ||
| SBA Tower Trust, 2.877%, 7/09/2021 (n) | 586,000 | 589,744 | ||
| $5,884,144 | ||||
| Tobacco – 0.4% | ||||
| Reynolds American, Inc., 6.875%, 5/01/2020 | $ | 1,340,000 | $1,356,236 | |
| Reynolds American, Inc., 3.25%, 6/12/2020 | 614,000 | 616,364 | ||
| $1,972,600 | ||||
| U.S. Government Agencies and Equivalents – 0.6% | ||||
| AID Ukraine, 1.847%, 5/29/2020 | $ | 2,500,000 | $2,504,009 | |
| Small Business Administration, 6.35%, 4/01/2021 | 24,613 | 24,920 | ||
| Small Business Administration, 6.34%, 5/01/2021 | 29,041 | 29,528 | ||
| Small Business Administration, 6.44%, 6/01/2021 | 25,233 | 25,790 | ||
4
Portfolio of Investments (unaudited) –
continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| U.S. Government Agencies and Equivalents – continued | ||||
| Small Business Administration, 6.625%, 7/01/2021 | $ | 27,791 | $28,322 | |
| Small Business Administration, 5.34%, 11/01/2021 | 97,818 | 99,821 | ||
| Small Business Administration, 4.93%, 1/01/2024 | 67,118 | 70,144 | ||
| Small Business Administration, 5.36%, 11/01/2025 | 152,267 | 162,886 | ||
| Small Business Administration, 5.39%, 12/01/2025 | 96,898 | 103,592 | ||
| $3,049,012 | ||||
| U.S. Treasury Obligations – 39.8% | ||||
| U.S. Treasury Notes, 2.625%, 8/15/2020 | $ | 7,525,000 | $7,565,858 | |
| U.S. Treasury Notes, 2.375%, 3/15/2021 | 18,815,000 | 19,000,210 | ||
| U.S. Treasury Notes, 1.75%, 11/30/2021 | 10,000,000 | 10,069,922 | ||
| U.S. Treasury Notes, 1.75%, 2/28/2022 | 14,420,000 | 14,541,105 | ||
| U.S. Treasury Notes, 1.75%, 5/15/2022 | 13,500,000 | 13,627,617 | ||
| U.S. Treasury Notes, 2.125%, 12/31/2022 | 14,635,000 | 14,974,578 | ||
| U.S. Treasury Notes, 2.5%, 8/15/2023 | 12,710,000 | 13,231,805 | ||
| U.S. Treasury Notes, 2.75%, 2/15/2024 | 8,385,000 | 8,855,674 | ||
| U.S. Treasury Notes, 2.375%, 8/15/2024 | 9,230,000 | 9,654,364 | ||
| U.S. Treasury Notes, 2%, 2/15/2025 | 9,900,000 | 10,216,336 | ||
| U.S. Treasury Notes, 2%, 8/15/2025 | 5,225,000 | 5,400,323 | ||
| U.S. Treasury Notes, 2.25%, 11/15/2025 | 14,255,000 | 14,938,238 | ||
| U.S. Treasury Notes, 1.625%, 5/15/2026 | 4,080,000 | 4,133,550 | ||
| U.S. Treasury Notes, 2%, 11/15/2026 | 12,585,000 | 13,048,580 | ||
| U.S. Treasury Notes, 1.625%, 11/30/2026 | 9,400,000 | 9,520,438 | ||
| U.S. Treasury Notes, 2.375%, 5/15/2027 | 4,075,000 | 4,338,761 | ||
| U.S. Treasury Notes, 2.75%, 2/15/2028 | 3,650,000 | 4,005,162 | ||
| U.S. Treasury Notes, 2.375%, 5/15/2029 | 9,000,000 | 9,673,945 | ||
| $186,796,466 | ||||
| Utilities - Electric Power – 2.9% | ||||
| Emera U.S. Finance LP, 2.7%, 6/15/2021 | $ | 492,000 | $497,897 | |
| Enel Americas S.A., 4%, 10/25/2026 | 252,000 | 267,750 | ||
| Enel Finance International N.V., 2.75%, 4/06/2023 (n) | 3,500,000 | 3,560,047 | ||
| Enel Finance International N.V., 4.875%, 6/14/2029 (n) | 1,615,000 | 1,871,489 | ||
| FirstEnergy Corp., 3.9%, 7/15/2027 | 2,827,000 | 3,093,897 | ||
| Oncor Electric Delivery Co., 4.1%, 6/01/2022 | 2,206,000 | 2,314,965 | ||
| PPL WEM Holdings PLC, 5.375%, 5/01/2021 (n) | 546,000 | 561,976 | ||
| Transelec S.A., 4.625%, 7/26/2023 (n) | 927,000 | 981,461 | ||
| Transelec S.A., 4.25%, 1/14/2025 (n) | 228,000 | 241,110 | ||
| $13,390,592 | ||||
| Total Bonds | $467,499,912 | |||
| Investment Companies (h) – 0.3% | ||||
| Money Market Funds – 0.3% | ||||
| MFS Institutional Money Market Portfolio, 1.62% (v) | 1,537,467 | $1,537,621 | ||
| Other Assets, Less Liabilities – 0.1% | 290,881 | |||
| Net Assets – 100.0% | $469,328,414 | |||
| (h) | An affiliated issuer, which may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of the fund's investments in affiliated issuers and in unaffiliated issuers were $1,537,621 and $467,499,912, respectively. | |||
| (i) | Interest only security for which the fund receives interest on notional principal (Par amount). Par amount shown is the notional principal and does not reflect the cost of the security. | |||
| (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 $73,381,419, representing 15.6% of net assets. | |||
| (v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
5
Portfolio of Investments (unaudited) –
continued
| The following abbreviations are used in this report and are defined: | |
| AID | U.S. Agency for International Development |
| CLO | Collateralized Loan Obligation |
| 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. |
| LIBOR | London Interbank Offered Rate |
| REIT | Real Estate Investment Trust |
See attached supplemental
information. For more information see notes to financial statements as disclosed in the most recent semiannual or annual report.
6
Supplemental Information
1/31/20 (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
Debt instruments and floating rate
loans, including restricted debt instruments, are generally valued at an evaluated or composite bid as provided by a third-party pricing service. Short-term instruments with a maturity at issuance of 60 days or
less may be valued at amortized cost, which approximates market value. Open-end investment companies are generally valued at net asset value per share. 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. 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 January 31, 2020 in valuing the fund's assets or liabilities:
| Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
| U.S. Treasury Bonds & U.S. Government Agencies & Equivalents | $— | $189,845,478 | $— | $189,845,478 |
| Non - U.S. Sovereign Debt | — | 7,441,902 | — | 7,441,902 |
| Municipal Bonds | — | 19,743,459 | — | 19,743,459 |
| U.S. Corporate Bonds | — | 153,017,699 | — | 153,017,699 |
| Residential Mortgage-Backed Securities | — | 6,189,958 | — | 6,189,958 |
| Commercial Mortgage-Backed Securities | — | 7,568,150 | — | 7,568,150 |
| Asset-Backed Securities (including CDOs) | — | 4,936,754 | — | 4,936,754 |
| Foreign Bonds | — | 78,756,512 | — | 78,756,512 |
| Mutual Funds | 1,537,621 | — | — | 1,537,621 |
| Total | $1,537,621 | $467,499,912 | $— | $469,037,533 |
For further information regarding
security characteristics, see the Portfolio of Investments.
7
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 | $3,881,383 | $22,342,438 | $24,686,221 | $203 | $(182) | $1,537,621 |
| Affiliated Issuers | Dividend Income | Capital Gain Distributions |
| MFS Institutional Money Market Portfolio | $17,721 | $— |
8