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 811-08326
MFS VARIABLE INSURANCE TRUST
(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
111Huntington 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: December 31
Date of reporting period: December 31, 2023
ITEM 1. REPORTS TO STOCKHOLDERS.
Item 1(a):
1 | |
2 | |
4 | |
6 | |
7 | |
11 | |
12 | |
13 | |
14 | |
16 | |
22 | |
23 | |
26 | |
29 | |
29 | |
29 | |
29 | |
29 | |
30 |
Schneider Electric SE | 3.0% |
Visa, Inc., “A” | 3.0% |
Linde PLC | 2.7% |
Accenture PLC, “A” | 2.6% |
Thermo Fisher Scientific, Inc. | 2.4% |
Comcast Corp., “A” | 2.4% |
Medtronic PLC | 2.4% |
Charles Schwab Corp. | 2.2% |
Roche Holding AG | 2.2% |
Honeywell International, Inc. | 2.2% |
Industrials | 20.5% |
Financials | 18.5% |
Health Care | 17.5% |
Consumer Staples | 10.7% |
Information Technology | 9.2% |
Communication Services | 8.1% |
Consumer Discretionary | 7.7% |
Materials | 6.9% |
United States | 52.9% |
France | 10.6% |
Switzerland | 9.3% |
United Kingdom | 8.7% |
Canada | 3.5% |
Germany | 3.0% |
Japan | 2.7% |
Netherlands | 2.6% |
Spain | 1.7% |
Other Countries | 5.0% |
United States Dollar | 57.7% |
Euro | 18.5% |
Swiss Franc | 9.3% |
British Pound Sterling | 8.7% |
Japanese Yen | 2.7% |
South Korean Won | 1.2% |
Swedish Krona | 1.1% |
Danish Krone | 0.5% |
Mexican Peso | 0.3% |
(g) | The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and S&P Global Market Intelligence Inc. (“S&P Global Market Intelligence”). GICS is a service mark of MSCI and S&P Global Market Intelligence and has been licensed for use by MFS. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS. |
(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. |
(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. |
Ryan McAllister and Roger Morley
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr |
Initial Class | 5/03/1999 | 14.18% | 10.25% | 7.20% |
Service Class | 5/01/2000 | 13.88% | 9.96% | 6.93% |
MSCI World Index (net div) (f) | 23.79% | 12.80% | 8.60% |
(f) | Source: FactSet Research Systems Inc. |
(e) | Morgan Stanley Capital International (“MSCI”) makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. |
July 1, 2023 through December 31, 2023
Share Class | Annualized Expense Ratio | Beginning Account Value 7/01/23 | Ending Account Value 12/31/23 | Expenses Paid During Period (p) 701/23-12/31/23 | |
Initial Class | Actual | 0.92% | $1,000.00 | $1,032.91 | $4.71 |
Hypothetical (h) | 0.92% | $1,000.00 | $1,020.57 | $4.69 | |
Service Class | Actual | 1.17% | $1,000.00 | $1,031.52 | $5.99 |
Hypothetical (h) | 1.17% | $1,000.00 | $1,019.31 | $5.96 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 99.1% | ||||
Aerospace & Defense – 3.5% | ||||
Honeywell International, Inc. | 5,363 | $ 1,124,675 | ||
MTU Aero Engines Holding AG | 1,021 | 220,073 | ||
Rolls-Royce Holdings PLC (a) | 132,842 | 507,473 | ||
$1,852,221 | ||||
Airlines – 0.9% | ||||
Aena SME S.A. | 2,726 | $ 493,837 | ||
Alcoholic Beverages – 5.5% | ||||
Carlsberg A.S., “B” | 2,269 | $ 284,536 | ||
Diageo PLC | 27,319 | 994,521 | ||
Heineken N.V. | 8,788 | 891,957 | ||
Pernod Ricard S.A. | 3,917 | 690,787 | ||
$2,861,801 | ||||
Apparel Manufacturers – 4.3% | ||||
Burberry Group PLC | 17,377 | $ 313,638 | ||
Compagnie Financiere Richemont S.A. | 6,306 | 867,867 | ||
LVMH Moet Hennessy Louis Vuitton SE | 1,342 | 1,086,829 | ||
$2,268,334 | ||||
Automotive – 0.5% | ||||
Aptiv PLC (a) | 2,805 | $ 251,665 | ||
Broadcasting – 1.9% | ||||
Omnicom Group, Inc. | 1,656 | $ 143,261 | ||
Walt Disney Co. | 6,132 | 553,658 | ||
WPP Group PLC | 29,319 | 281,407 | ||
$978,326 | ||||
Brokerage & Asset Managers – 3.6% | ||||
Charles Schwab Corp. | 16,892 | $ 1,162,170 | ||
Deutsche Boerse AG | 1,438 | 296,065 | ||
London Stock Exchange Group PLC | 3,546 | 419,176 | ||
$1,877,411 | ||||
Business Services – 9.6% | ||||
Accenture PLC, “A” | 3,834 | $ 1,345,389 | ||
Adecco S.A. | 3,210 | 157,513 | ||
Brenntag AG | 2,990 | 274,694 | ||
Cognizant Technology Solutions Corp., “A” | 7,345 | 554,768 | ||
Compass Group PLC | 11,199 | 306,337 | ||
Equifax, Inc. | 1,770 | 437,703 | ||
Experian PLC | 13,476 | 550,014 | ||
Fidelity National Information Services, Inc. | 6,873 | 412,861 | ||
Fiserv, Inc. (a) | 3,899 | 517,943 | ||
Intertek Group PLC | 5,845 | 316,341 | ||
PayPal Holdings, Inc. (a) | 2,387 | 146,586 | ||
$5,020,149 | ||||
Cable TV – 2.4% | ||||
Comcast Corp., “A” | 28,169 | $ 1,235,211 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Chemicals – 1.9% | ||||
3M Co. | 3,874 | $ 423,506 | ||
PPG Industries, Inc. | 3,804 | 568,888 | ||
$992,394 | ||||
Computer Software – 3.0% | ||||
Check Point Software Technologies Ltd. (a) | 4,219 | $ 644,621 | ||
Oracle Corp. | 8,736 | 921,036 | ||
$1,565,657 | ||||
Computer Software - Systems – 1.2% | ||||
Samsung Electronics Co. Ltd. | 10,233 | $ 622,370 | ||
Construction – 0.6% | ||||
Otis Worldwide Corp. | 3,410 | $ 305,093 | ||
Consumer Products – 3.5% | ||||
Essity AB | 24,164 | $ 598,946 | ||
International Flavors & Fragrances, Inc. | 7,860 | 636,424 | ||
Reckitt Benckiser Group PLC | 8,503 | 587,439 | ||
$1,822,809 | ||||
Electrical Equipment – 5.2% | ||||
Amphenol Corp., “A” | 4,286 | $ 424,871 | ||
Legrand S.A. | 6,682 | 694,138 | ||
Schneider Electric SE | 7,893 | 1,583,936 | ||
$2,702,945 | ||||
Electronics – 1.2% | ||||
Hoya Corp. | 2,700 | $ 337,500 | ||
Microchip Technology, Inc. | 3,504 | 315,991 | ||
$653,491 | ||||
Food & Beverages – 2.9% | ||||
Danone S.A. | 7,283 | $ 471,791 | ||
Nestle S.A. | 9,089 | 1,053,764 | ||
$1,525,555 | ||||
Gaming & Lodging – 1.2% | ||||
Marriott International, Inc., “A” | 1,675 | $ 377,729 | ||
Whitbread PLC | 5,575 | 259,802 | ||
$637,531 | ||||
Insurance – 3.2% | ||||
Aon PLC | 2,148 | $ 625,111 | ||
Willis Towers Watson PLC | 4,293 | 1,035,471 | ||
$1,660,582 | ||||
Internet – 2.7% | ||||
Alphabet, Inc., “A” (a) | 7,780 | $ 1,086,788 | ||
eBay, Inc. | 7,730 | 337,183 | ||
$1,423,971 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Machinery & Tools – 1.3% | ||||
Carrier Global Corp. | 2,820 | $ 162,009 | ||
Kubota Corp. | 33,900 | 510,303 | ||
$672,312 | ||||
Major Banks – 4.6% | ||||
Erste Group Bank AG | 7,277 | $ 295,068 | ||
Goldman Sachs Group, Inc. | 2,699 | 1,041,193 | ||
UBS Group AG | 34,606 | 1,073,916 | ||
$2,410,177 | ||||
Medical Equipment – 13.1% | ||||
Abbott Laboratories | 6,445 | $ 709,401 | ||
Boston Scientific Corp. (a) | 15,064 | 870,850 | ||
Cooper Cos., Inc. | 1,275 | 482,511 | ||
EssilorLuxottica | 1,133 | 227,141 | ||
Medtronic PLC | 14,973 | 1,233,476 | ||
Olympus Corp. | 38,900 | 562,946 | ||
Sonova Holding AG | 1,076 | 351,055 | ||
Stryker Corp. | 1,429 | 427,928 | ||
Thermo Fisher Scientific, Inc. | 2,401 | 1,274,427 | ||
Waters Corp. (a) | 2,222 | 731,549 | ||
$6,871,284 | ||||
Other Banks & Diversified Financials – 5.0% | ||||
American Express Co. | 3,823 | $ 716,201 | ||
Grupo Financiero Banorte S.A. de C.V. | 17,403 | 175,004 | ||
Julius Baer Group Ltd. | 3,520 | 197,334 | ||
Visa, Inc., “A” | 5,974 | 1,555,331 | ||
$2,643,870 | ||||
Pharmaceuticals – 3.8% | ||||
Merck KGaA | 5,097 | $ 810,827 | ||
Roche Holding AG | 3,993 | 1,160,797 | ||
$1,971,624 | ||||
Railroad & Shipping – 4.8% | ||||
Canadian National Railway Co. | 6,779 | $ 851,646 | ||
Canadian Pacific Kansas City Ltd. | 12,611 | 997,026 | ||
Union Pacific Corp. | 2,752 | 675,946 | ||
$2,524,618 | ||||
Specialty Chemicals – 4.6% | ||||
Air Liquide S.A. | 2,759 | $ 536,426 | ||
Akzo Nobel N.V. | 5,459 | 450,900 | ||
Linde PLC | 3,402 | 1,397,235 | ||
$2,384,561 | ||||
Specialty Stores – 0.5% | ||||
Hermes International | 113 | $ 239,363 | ||
Telecommunications - Wireless – 1.8% | ||||
Cellnex Telecom S.A. | 9,727 | $ 382,922 | ||
Liberty Broadband Corp. (a) | 6,751 | 544,063 | ||
$926,985 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Trucking – 0.8% | ||||
United Parcel Service, Inc., “B” | 2,693 | $ 423,420 | ||
Total Common Stocks (Identified Cost, $26,025,805) | $51,819,567 | |||
Investment Companies (h) – 0.0% | ||||
Money Market Funds – 0.0% | ||||
MFS Institutional Money Market Portfolio, 5.42% (v) (Identified Cost, $1,736) | 1,735 | $ 1,736 | ||
Other Assets, Less Liabilities – 0.9% | 458,927 | |||
Net Assets – 100.0% | $52,280,230 |
(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 $1,736 and $51,819,567, respectively. | |||
(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. |
Financial Statements | Statement of Assets and Liabilities |
At 12/31/23Assets | |
Investments in unaffiliated issuers, at value (identified cost, $26,025,805) | $51,819,567 |
Investments in affiliated issuers, at value (identified cost, $1,736) | 1,736 |
Foreign currency, at value (identified cost, $4) | 4 |
Receivables for | |
Investments sold | 460,853 |
Fund shares sold | 17,960 |
Interest and dividends | 166,552 |
Receivable from investment adviser | 3,528 |
Other assets | 416 |
Total assets | $52,470,616 |
Liabilities | |
Payable to custodian | $19,756 |
Payables for | |
Fund shares reacquired | 100,290 |
Payable to affiliates | |
Administrative services fee | 195 |
Shareholder servicing costs | 46 |
Distribution and/or service fees | 274 |
Payable for independent Trustees' compensation | 10 |
Payable for audit and tax fees | 39,136 |
Payable for shareholder communications | 19,372 |
Accrued expenses and other liabilities | 11,307 |
Total liabilities | $190,386 |
Net assets | $52,280,230 |
Net assets consist of | |
Paid-in capital | $23,629,732 |
Total distributable earnings (loss) | 28,650,498 |
Net assets | $52,280,230 |
Shares of beneficial interest outstanding | 2,440,053 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $42,287,554 | 1,969,860 | $21.47 |
Service Class | 9,992,676 | 470,193 | 21.25 |
Financial Statements | Statement of Operations |
Year ended 12/31/23 | |
Net investment income (loss) | |
Income | |
Dividends | $984,376 |
Dividends from affiliated issuers | 16,827 |
Interest | 662 |
Income on securities loaned | 203 |
Other | 37 |
Foreign taxes withheld | (66,348) |
Total investment income | $935,757 |
Expenses | |
Management fee | $459,372 |
Distribution and/or service fees | 24,340 |
Shareholder servicing costs | 1,841 |
Administrative services fee | 17,707 |
Independent Trustees' compensation | 3,065 |
Custodian fee | 11,171 |
Shareholder communications | 9,596 |
Audit and tax fees | 70,011 |
Legal fees | 320 |
Miscellaneous | 24,122 |
Total expenses | $621,545 |
Reduction of expenses by investment adviser | (126,731) |
Net expenses | $494,814 |
Net investment income (loss) | $440,943 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $2,953,026 |
Affiliated issuers | 219 |
Foreign currency | 12 |
Net realized gain (loss) | $2,953,257 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $3,354,445 |
Affiliated issuers | (54) |
Translation of assets and liabilities in foreign currencies | 8,817 |
Net unrealized gain (loss) | $3,363,208 |
Net realized and unrealized gain (loss) | $6,316,465 |
Change in net assets from operations | $6,757,408 |
Financial Statements | Statements of Changes in Net Assets |
Year ended | ||
12/31/23 | 12/31/22 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $440,943 | $374,997 |
Net realized gain (loss) | 2,953,257 | 2,133,459 |
Net unrealized gain (loss) | 3,363,208 | (14,525,344) |
Change in net assets from operations | $6,757,408 | $(12,016,888) |
Total distributions to shareholders | $(2,572,354) | $(5,629,118) |
Change in net assets from fund share transactions | $(1,217,520) | $249,205 |
Total change in net assets | $2,967,534 | $(17,396,801) |
Net assets | ||
At beginning of period | 49,312,696 | 66,709,497 |
At end of period | $52,280,230 | $49,312,696 |
Financial Statements | Financial Highlights |
Initial Class | Year ended | ||||
12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | |
Net asset value, beginning of period | $19.82 | $26.90 | $24.57 | $22.79 | $18.82 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.19 | $0.16 | $0.12 | $0.16 | $0.25 |
Net realized and unrealized gain (loss) | 2.55 | (4.91) | 4.07 | 2.73 | 5.35 |
Total from investment operations | $2.74 | $(4.75) | $4.19 | $2.89 | $5.60 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.17) | $(0.12) | $(0.17) | $(0.26) | $(0.25) |
From net realized gain | (0.92) | (2.21) | (1.69) | (0.85) | (1.38) |
Total distributions declared to shareholders | $(1.09) | $(2.33) | $(1.86) | $(1.11) | $(1.63) |
Net asset value, end of period (x) | $21.47 | $19.82 | $26.90 | $24.57 | $22.79 |
Total return (%) (k)(r)(s)(x) | 14.18 | (17.73) | 17.21 | 13.29 | 30.57 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 1.17 | 1.17 | 1.13 | 1.16 | 1.16 |
Expenses after expense reductions | 0.92 | 0.92 | 0.92 | 0.92 | 0.95 |
Net investment income (loss) | 0.91 | 0.74 | 0.45 | 0.75 | 1.16 |
Portfolio turnover | 9 | 7 | 12 | 12 | 11 |
Net assets at end of period (000 omitted) | $42,288 | $39,840 | $51,966 | $46,879 | $49,771 |
Service Class | Year ended | ||||
12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | |
Net asset value, beginning of period | $19.62 | $26.64 | $24.37 | $22.62 | $18.70 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.14 | $0.11 | $0.05 | $0.10 | $0.18 |
Net realized and unrealized gain (loss) | 2.51 | (4.87) | 4.03 | 2.71 | 5.32 |
Total from investment operations | $2.65 | $(4.76) | $4.08 | $2.81 | $5.50 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.10) | $(0.05) | $(0.12) | $(0.21) | $(0.20) |
From net realized gain | (0.92) | (2.21) | (1.69) | (0.85) | (1.38) |
Total distributions declared to shareholders | $(1.02) | $(2.26) | $(1.81) | $(1.06) | $(1.58) |
Net asset value, end of period (x) | $21.25 | $19.62 | $26.64 | $24.37 | $22.62 |
Total return (%) (k)(r)(s)(x) | 13.88 | (17.94) | 16.88 | 13.04 | 30.20 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 1.42 | 1.42 | 1.38 | 1.41 | 1.41 |
Expenses after expense reductions | 1.17 | 1.17 | 1.17 | 1.17 | 1.20 |
Net investment income (loss) | 0.66 | 0.49 | 0.19 | 0.48 | 0.85 |
Portfolio turnover | 9 | 7 | 12 | 12 | 11 |
Net assets at end of period (000 omitted) | $9,993 | $9,473 | $14,744 | $13,469 | $11,319 |
(d) | Per share data is based on average shares outstanding. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(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 |
Equity Securities: | ||||
United States | $27,189,521 | $— | $— | $27,189,521 |
France | 5,530,411 | — | — | 5,530,411 |
Switzerland | 4,862,246 | — | — | 4,862,246 |
United Kingdom | 4,536,148 | — | — | 4,536,148 |
Canada | 1,848,672 | — | — | 1,848,672 |
Germany | 1,601,659 | — | — | 1,601,659 |
Japan | 1,410,749 | — | — | 1,410,749 |
Netherlands | 1,342,857 | — | — | 1,342,857 |
Spain | 876,759 | — | — | 876,759 |
Other Countries | 1,998,175 | 622,370 | — | 2,620,545 |
Mutual Funds | 1,736 | — | — | 1,736 |
Total | $51,198,933 | $622,370 | $— | $51,821,303 |
Year ended 12/31/23 | Year ended 12/31/22 | |
Ordinary income (including any short-term capital gains) | $369,097 | $383,057 |
Long-term capital gains | 2,203,257 | 5,246,061 |
Total distributions | $2,572,354 | $5,629,118 |
As of 12/31/23 | |
Cost of investments | $26,532,479 |
Gross appreciation | 26,568,419 |
Gross depreciation | (1,279,595) |
Net unrealized appreciation (depreciation) | $25,288,824 |
Undistributed ordinary income | 498,199 |
Undistributed long-term capital gain | 2,858,143 |
Other temporary differences | 5,332 |
Total distributable earnings (loss) | $28,650,498 |
Year ended 12/31/23 | Year ended 12/31/22 | ||
Initial Class | $2,088,563 | $4,432,765 | |
Service Class | 483,791 | 1,196,353 | |
Total | $2,572,354 | $5,629,118 |
Up to $1 billion | 0.90% |
In excess of $1 billion and up to $2.5 billion | 0.75% |
In excess of $2.5 billion | 0.65% |
Year ended 12/31/23 | Year ended 12/31/22 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 193,835 | $4,012,208 | 212,890 | $4,784,619 | |
Service Class | 73,640 | 1,532,889 | 80,213 | 1,744,781 | |
267,475 | $5,545,097 | 293,103 | $6,529,400 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | 103,805 | $2,088,563 | 221,860 | $4,432,765 | |
Service Class | 24,262 | 483,791 | 60,452 | 1,196,353 | |
128,067 | $2,572,354 | 282,312 | $5,629,118 | ||
Shares reacquired | |||||
Initial Class | (338,228) | $(7,062,214) | (356,010) | $(7,569,275) | |
Service Class | (110,591) | (2,272,757) | (211,201) | (4,340,038) | |
(448,819) | $(9,334,971) | (567,211) | $(11,909,313) | ||
Net change | |||||
Initial Class | (40,588) | $(961,443) | 78,740 | $1,648,109 | |
Service Class | (12,689) | (256,077) | (70,536) | (1,398,904) | |
(53,277) | $(1,217,520) | 8,204 | $249,205 |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $182,641 | $7,552,923 | $7,733,993 | $219 | $(54) | $1,736 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $16,827 | $— |
February 14, 2024
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 TRUSTEE | ||||||||||
Michael W. Roberge (k) (age 57) | 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) | N/A | |||||
INDEPENDENT TRUSTEES | ||||||||||
John P. Kavanaugh (age 69) | Trustee and Chair of Trustees | January 2009 | 136 | Private investor | N/A | |||||
Steven E. Buller (age 72) | Trustee | February 2014 | 136 | Private investor | N/A | |||||
John A. Caroselli (age 69) | Trustee | March 2017 | 136 | Private investor; JC Global Advisors, LLC (management consulting), President (since 2015) | N/A | |||||
Maureen R. Goldfarb (age 68) | Trustee | January 2009 | 136 | Private investor | N/A | |||||
Peter D. Jones (age 68) | Trustee | January 2019 | 136 | Private investor | N/A | |||||
James W. Kilman, Jr. (age 62) | 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) | |||||
Clarence Otis, Jr. (age 67) | Trustee | March 2017 | 136 | Private investor | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director | |||||
Maryanne L. Roepke (age 67) | Trustee | May 2014 | 136 | Private investor | N/A | |||||
Laurie J. Thomsen (age 66) | 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 50) | Assistant Secretary and Assistant Clerk | July 2005 | 136 | Massachusetts Financial Services Company, Senior Vice President and Senior Managing Counsel | ||||
Kino Clark (k) (age 55) | Assistant Treasurer | January 2012 | 136 | Massachusetts Financial Services Company, Vice President |
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 | ||||
John W. Clark, Jr. (k) (age 56) | Assistant Treasurer | April 2017 | 136 | Massachusetts Financial Services Company, Vice President | ||||
David L. DiLorenzo (k) (age 55) | President | July 2005 | 136 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 56) | Secretary and Clerk | April 2017 | 136 | Massachusetts Financial Services Company, Executive Vice President and General Counsel | ||||
Brian E. Langenfeld (k) (age 50) | Assistant Secretary and Assistant Clerk | June 2006 | 136 | Massachusetts Financial Services Company, Vice President and Managing Counsel | ||||
Rosa E. Licea-Mailloux (k) (age 47) | 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) | ||||
Amanda S. Mooradian (k) (age 44) | Assistant Secretary and Assistant Clerk | September 2018 | 136 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 53) | Assistant Secretary and Assistant Clerk | July 2005 | 136 | Massachusetts Financial Services Company, Vice President and Managing Counsel | ||||
Kasey L. Phillips (k) (age 53) | Assistant Treasurer | September 2012 | 136 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 49) | Assistant Secretary and Assistant Clerk | October 2014 | 136 | Massachusetts Financial Services Company, Vice President and Senior Managing Counsel | ||||
William B. Wilson (k) (age 41) | Assistant Secretary and Assistant Clerk | October 2022 | 136 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
James O. Yost (k) (age 63) | 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 Congress Street, Suite 1 Boston, MA 02114-2016 |
Distributor | Independent Registered Public Accounting Firm |
MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618 | Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 |
Portfolio Manager(s) | |
Ryan McAllister Roger Morley |
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. |
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Microsoft Corp. | 14.5% |
Amazon.com, Inc. | 6.6% |
Alphabet, Inc., “A” | 6.3% |
NVIDIA Corp. | 6.0% |
Apple, Inc. | 5.9% |
Meta Platforms, Inc., “A” | 4.6% |
Mastercard, Inc., “A” | 3.9% |
Visa, Inc., “A” | 3.4% |
Eli Lilly & Co. | 2.5% |
Boston Scientific Corp. | 2.0% |
Information Technology | 39.8% |
Communication Services | 13.8% |
Health Care | 10.8% |
Financials | 10.4% |
Consumer Discretionary | 10.4% |
Industrials | 6.8% |
Materials | 5.3% |
Real Estate | 1.2% |
Consumer Staples | 0.8% |
Energy | 0.2% |
(g) | The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and S&P Global Market Intelligence Inc. (“S&P Global Market Intelligence”). GICS is a service mark of MSCI and S&P Global Market Intelligence and has been licensed for use by MFS. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS. |
(b) | Security is not a benchmark constituent. |
(h) | Security was not held in the portfolio at period end. |
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr |
Initial Class | 7/24/1995 | 35.86% | 15.89% | 12.97% |
Service Class | 5/01/2000 | 35.51% | 15.59% | 12.69% |
Russell 1000® Growth Index (f) | 42.68% | 19.50% | 14.86% |
(f) | Source: FactSet Research Systems Inc. |
(h) | Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and/or Russell ratings or underlying data and no party may rely on any Russell Indexes and/or Russell ratings and/or underlying data contained in this document. No further distribution of Russell Data is permitted without Russell's express written consent. Russell does not promote, sponsor, or endorse the content of this document. |
July 1, 2023 through December 31, 2023
Share Class | Annualized Expense Ratio | Beginning Account Value 7/01/23 | Ending Account Value 12/31/23 | Expenses Paid During Period (p) 7/01/23-12/31/23 | |
Initial Class | Actual | 0.72% | $1,000.00 | $1,095.57 | $3.80 |
Hypothetical (h) | 0.72% | $1,000.00 | $1,021.58 | $3.67 | |
Service Class | Actual | 0.97% | $1,000.00 | $1,094.14 | $5.12 |
Hypothetical (h) | 0.97% | $1,000.00 | $1,020.32 | $4.94 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 99.5% | ||||
Aerospace & Defense – 0.7% | ||||
Howmet Aerospace, Inc. | 237,745 | $ 12,866,759 | ||
Apparel Manufacturers – 1.0% | ||||
LVMH Moet Hennessy Louis Vuitton SE | 23,177 | $ 18,770,075 | ||
Brokerage & Asset Managers – 0.6% | ||||
CME Group, Inc. | 44,618 | $ 9,396,551 | ||
KKR & Co., Inc. | 22,174 | 1,837,116 | ||
$11,233,667 | ||||
Business Services – 4.7% | ||||
CoStar Group, Inc. (a) | 255,304 | $ 22,311,016 | ||
MSCI, Inc. | 51,221 | 28,973,159 | ||
TransUnion | 72,656 | 4,992,194 | ||
Verisk Analytics, Inc., “A” | 130,410 | 31,149,733 | ||
$87,426,102 | ||||
Computer Software – 20.1% | ||||
Adobe Systems, Inc. (a) | 21,664 | $ 12,924,743 | ||
Cadence Design Systems, Inc. (a) | 125,313 | 34,131,502 | ||
Datadog, Inc., “A” (a) | 31,321 | 3,801,743 | ||
Intuit, Inc. | 39,079 | 24,425,547 | ||
Microsoft Corp. | 717,008 | 269,623,688 | ||
Synopsys, Inc. (a) | 56,065 | 28,868,429 | ||
$373,775,652 | ||||
Computer Software - Systems – 7.7% | ||||
Apple, Inc. | 572,384 | $ 110,201,092 | ||
ServiceNow, Inc. (a) | 47,139 | 33,303,232 | ||
$143,504,324 | ||||
Construction – 2.9% | ||||
Martin Marietta Materials, Inc. | 15,297 | $ 7,631,826 | ||
Sherwin-Williams Co. | 35,597 | 11,102,705 | ||
Vulcan Materials Co. | 152,115 | 34,531,626 | ||
$53,266,157 | ||||
Consumer Products – 0.8% | ||||
Colgate-Palmolive Co. | 65,205 | $ 5,197,491 | ||
Estée Lauder Cos., Inc., “A” | 60,910 | 8,908,087 | ||
$14,105,578 | ||||
Consumer Services – 0.9% | ||||
Uber Technologies, Inc. (a) | 263,702 | $ 16,236,132 | ||
Electrical Equipment – 2.7% | ||||
AMETEK, Inc. | 140,225 | $ 23,121,700 | ||
Amphenol Corp., “A” | 169,785 | 16,830,787 | ||
Rockwell Automation, Inc. | 32,698 | 10,152,075 | ||
$50,104,562 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Electronics – 10.2% | ||||
Applied Materials, Inc. | 49,589 | $ 8,036,889 | ||
ASML Holding N.V., ADR | 38,180 | 28,899,206 | ||
KLA Corp. | 25,253 | 14,679,569 | ||
Lam Research Corp. | 20,473 | 16,035,682 | ||
Marvell Technology, Inc. | 71,420 | 4,307,340 | ||
NVIDIA Corp. | 223,664 | 110,762,886 | ||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 64,229 | 6,679,816 | ||
$189,401,388 | ||||
Energy - Independent – 0.2% | ||||
Hess Corp. | 24,303 | $ 3,503,520 | ||
Entertainment – 0.6% | ||||
Spotify Technology S.A. (a) | 65,002 | $ 12,214,526 | ||
Gaming & Lodging – 1.4% | ||||
Hilton Worldwide Holdings, Inc. | 118,065 | $ 21,498,456 | ||
Las Vegas Sands Corp. | 81,742 | 4,022,524 | ||
$25,520,980 | ||||
Health Maintenance Organizations – 0.2% | ||||
UnitedHealth Group, Inc. | 8,884 | $ 4,677,160 | ||
Insurance – 0.8% | ||||
Aon PLC | 13,356 | $ 3,886,863 | ||
Arthur J. Gallagher & Co. | 51,304 | 11,537,244 | ||
$15,424,107 | ||||
Internet – 13.5% | ||||
Alphabet, Inc., “A” (a) | 838,209 | $ 117,089,415 | ||
Alphabet, Inc., “C” (a) | 226,597 | 31,934,315 | ||
Gartner, Inc. (a) | 35,622 | 16,069,441 | ||
Meta Platforms, Inc., “A” (a) | 242,715 | 85,911,401 | ||
$251,004,572 | ||||
Leisure & Toys – 0.5% | ||||
Take-Two Interactive Software, Inc. (a) | 59,339 | $ 9,550,612 | ||
Machinery & Tools – 1.5% | ||||
Eaton Corp. PLC | 112,528 | $ 27,098,993 | ||
Medical & Health Technology & Services – 0.6% | ||||
ICON PLC (a) | 23,246 | $ 6,580,245 | ||
Veeva Systems, Inc. (a) | 26,840 | 5,167,237 | ||
$11,747,482 | ||||
Medical Equipment – 4.2% | ||||
Agilent Technologies, Inc. | 34,505 | $ 4,797,230 | ||
Becton, Dickinson and Co. | 34,036 | 8,298,998 | ||
Boston Scientific Corp. (a) | 640,585 | 37,032,219 | ||
STERIS PLC | 32,135 | 7,064,880 | ||
Thermo Fisher Scientific, Inc. | 40,935 | 21,727,888 | ||
$78,921,215 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Other Banks & Diversified Financials – 7.4% | ||||
Mastercard, Inc., “A” | 172,139 | $ 73,419,005 | ||
Moody's Corp. | 4,701 | 1,836,023 | ||
Visa, Inc., “A” | 242,307 | 63,084,627 | ||
$138,339,655 | ||||
Pharmaceuticals – 5.7% | ||||
Argenx SE, ADR (a) | 10,112 | $ 3,846,908 | ||
Eli Lilly & Co. | 80,205 | 46,753,098 | ||
Regeneron Pharmaceuticals, Inc. (a) | 7,740 | 6,797,965 | ||
Vertex Pharmaceuticals, Inc. (a) | 85,938 | 34,967,313 | ||
Zoetis, Inc. | 66,933 | 13,210,566 | ||
$105,575,850 | ||||
Railroad & Shipping – 0.1% | ||||
Canadian Pacific Kansas City Ltd. | 20,724 | $ 1,638,439 | ||
Restaurants – 0.2% | ||||
Chipotle Mexican Grill, Inc., “A” (a) | 1,808 | $ 4,134,824 | ||
Specialty Chemicals – 2.5% | ||||
Air Products & Chemicals, Inc. | 44,072 | $ 12,066,914 | ||
Linde PLC | 82,274 | 33,790,754 | ||
$45,857,668 | ||||
Specialty Stores – 7.8% | ||||
Amazon.com, Inc. (a) | 801,736 | $ 121,815,768 | ||
Lululemon Athletica, Inc. (a) | 17,167 | 8,777,315 | ||
O'Reilly Automotive, Inc. (a) | 14,413 | 13,693,503 | ||
$144,286,586 | ||||
Total Common Stocks (Identified Cost, $718,374,796) | $1,850,186,585 | |||
Investment Companies (h) – 0.8% | ||||
Money Market Funds – 0.8% | ||||
MFS Institutional Money Market Portfolio, 5.42% (v) (Identified Cost, $13,842,058) | 13,843,116 | $ 13,845,884 | ||
Other Assets, Less Liabilities – (0.3)% | (5,247,422) | |||
Net Assets – 100.0% | $1,858,785,047 |
(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 $13,845,884 and $1,850,186,585, respectively. | |||
(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 |
Financial Statements | Statement of Assets and Liabilities |
At 12/31/23Assets | |
Investments in unaffiliated issuers, at value (identified cost, $718,374,796) | $1,850,186,585 |
Investments in affiliated issuers, at value (identified cost, $13,842,058) | 13,845,884 |
Receivables for | |
Fund shares sold | 310,549 |
Dividends | 442,893 |
Other assets | 6,516 |
Total assets | $1,864,792,427 |
Liabilities | |
Payables for | |
Fund shares reacquired | $5,666,106 |
Payable to affiliates | |
Investment adviser | 141,261 |
Administrative services fee | 2,590 |
Shareholder servicing costs | 433 |
Distribution and/or service fees | 13,264 |
Payable for independent Trustees' compensation | 13 |
Accrued expenses and other liabilities | 183,713 |
Total liabilities | $6,007,380 |
Net assets | $1,858,785,047 |
Net assets consist of | |
Paid-in capital | $567,062,778 |
Total distributable earnings (loss) | 1,291,722,269 |
Net assets | $1,858,785,047 |
Shares of beneficial interest outstanding | 31,495,227 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $1,375,608,948 | 22,817,938 | $60.29 |
Service Class | 483,176,099 | 8,677,289 | 55.68 |
Financial Statements | Statement of Operations |
Year ended 12/31/23 | |
Net investment income (loss) | |
Income | |
Dividends | $10,803,652 |
Dividends from affiliated issuers | 1,338,435 |
Other | 25,743 |
Foreign taxes withheld | (104,231) |
Total investment income | $12,063,599 |
Expenses | |
Management fee | $12,165,666 |
Distribution and/or service fees | 1,086,477 |
Shareholder servicing costs | 12,349 |
Administrative services fee | 257,701 |
Independent Trustees' compensation | 30,289 |
Custodian fee | 73,112 |
Shareholder communications | 46,689 |
Audit and tax fees | 72,407 |
Legal fees | 9,170 |
Miscellaneous | 43,017 |
Total expenses | $13,796,877 |
Reduction of expenses by investment adviser | (219,514) |
Net expenses | $13,577,363 |
Net investment income (loss) | $(1,513,764) |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $161,606,045 |
Affiliated issuers | (4,127) |
Foreign currency | 663 |
Net realized gain (loss) | $161,602,581 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $361,832,969 |
Affiliated issuers | (10,198) |
Translation of assets and liabilities in foreign currencies | 180 |
Net unrealized gain (loss) | $361,822,951 |
Net realized and unrealized gain (loss) | $523,425,532 |
Change in net assets from operations | $521,911,768 |
Financial Statements | Statements of Changes in Net Assets |
Year ended | ||
12/31/23 | 12/31/22 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $(1,513,764) | $(2,629,918) |
Net realized gain (loss) | 161,602,581 | 135,463,776 |
Net unrealized gain (loss) | 361,822,951 | (872,241,975) |
Change in net assets from operations | $521,911,768 | $(739,408,117) |
Total distributions to shareholders | $(135,763,494) | $(206,493,057) |
Change in net assets from fund share transactions | $(71,275,107) | $109,659,888 |
Total change in net assets | $314,873,167 | $(836,241,286) |
Net assets | ||
At beginning of period | 1,543,911,880 | 2,380,153,166 |
At end of period | $1,858,785,047 | $1,543,911,880 |
Financial Statements | Financial Highlights |
Initial Class | Year ended | ||||
12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | |
Net asset value, beginning of period | $48.02 | $79.36 | $73.81 | $59.40 | $47.01 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $(0.01) | $(0.05) | $(0.25) | $(0.14) | $(0.04) |
Net realized and unrealized gain (loss) | 16.76 | (24.26) | 17.21 | 18.88 | 17.53 |
Total from investment operations | $16.75 | $(24.31) | $16.96 | $18.74 | $17.49 |
Less distributions declared to shareholders | |||||
From net realized gain | $(4.48) | $(7.03) | $(11.41) | $(4.33) | $(5.10) |
Net asset value, end of period (x) | $60.29 | $48.02 | $79.36 | $73.81 | $59.40 |
Total return (%) (k)(r)(s)(x) | 35.86 | (31.63) | 23.53 | 31.86 | 38.15 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.74 | 0.74 | 0.72 | 0.74 | 0.74 |
Expenses after expense reductions | 0.73 | 0.73 | 0.71 | 0.72 | 0.73 |
Net investment income (loss) | (0.03) | (0.09) | (0.32) | (0.21) | (0.06) |
Portfolio turnover | 23 | 18 | 12 | 29 | 11 |
Net assets at end of period (000 omitted) | $1,375,609 | $1,160,108 | $1,805,385 | $1,681,327 | $1,467,280 |
Service Class | Year ended | ||||
12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | |
Net asset value, beginning of period | $44.74 | $74.74 | $70.23 | $56.82 | $45.26 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $(0.14) | $(0.18) | $(0.42) | $(0.29) | $(0.17) |
Net realized and unrealized gain (loss) | 15.56 | (22.79) | 16.34 | 18.03 | 16.83 |
Total from investment operations | $15.42 | $(22.97) | $15.92 | $17.74 | $16.66 |
Less distributions declared to shareholders | |||||
From net realized gain | $(4.48) | $(7.03) | $(11.41) | $(4.33) | $(5.10) |
Net asset value, end of period (x) | $55.68 | $44.74 | $74.74 | $70.23 | $56.82 |
Total return (%) (k)(r)(s)(x) | 35.51 | (31.80) | 23.24 | 31.54 | 37.78 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.99 | 0.99 | 0.97 | 0.99 | 0.99 |
Expenses after expense reductions | 0.98 | 0.98 | 0.96 | 0.97 | 0.98 |
Net investment income (loss) | (0.27) | (0.34) | (0.57) | (0.46) | (0.31) |
Portfolio turnover | 23 | 18 | 12 | 29 | 11 |
Net assets at end of period (000 omitted) | $483,176 | $383,804 | $574,768 | $514,102 | $401,008 |
(d) | Per share data is based on average shares outstanding. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(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 |
Equity Securities | $1,850,186,585 | $— | $— | $1,850,186,585 |
Mutual Funds | 13,845,884 | — | — | 13,845,884 |
Total | $1,864,032,469 | $— | $— | $1,864,032,469 |
Year ended 12/31/23 | Year ended 12/31/22 | |
Ordinary income (including any short-term capital gains) | $— | $8,852,271 |
Long-term capital gains | 135,763,494 | 197,640,786 |
Total distributions | $135,763,494 | $206,493,057 |
As of 12/31/23 | |
Cost of investments | $733,465,997 |
Gross appreciation | 1,134,825,929 |
Gross depreciation | (4,259,457) |
Net unrealized appreciation (depreciation) | $1,130,566,472 |
Undistributed long-term capital gain | 161,155,412 |
Other temporary differences | 385 |
Total distributable earnings (loss) | $1,291,722,269 |
Year ended 12/31/23 | Year ended 12/31/22 | ||
Initial Class | $99,594,045 | $153,225,412 | |
Service Class | 36,169,449 | 53,267,645 | |
Total | $135,763,494 | $206,493,057 |
Up to $1 billion | 0.75% |
In excess of $1 billion | 0.65% |
Year ended 12/31/23 | Year ended 12/31/22 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 928,786 | $51,260,023 | 1,752,561 | $104,011,257 | |
Service Class | 908,256 | 46,708,016 | 1,084,357 | 60,672,539 | |
1,837,042 | $97,968,039 | 2,836,918 | $164,683,796 |
Year ended 12/31/23 | Year ended 12/31/22 | ||||
Shares | Amount | Shares | Amount | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | 1,810,341 | $98,772,215 | 2,803,820 | $151,742,716 | |
Service Class | 717,079 | 36,169,449 | 1,055,432 | 53,267,645 | |
2,527,420 | $134,941,664 | 3,859,252 | $205,010,361 | ||
Shares reacquired | |||||
Initial Class | (4,078,799) | $(225,454,826) | (3,148,754) | $(188,392,601) | |
Service Class | (1,526,205) | (78,729,984) | (1,252,072) | (71,641,668) | |
(5,605,004) | $(304,184,810) | (4,400,826) | $(260,034,269) | ||
Net change | |||||
Initial Class | (1,339,672) | $(75,422,588) | 1,407,627 | $67,361,372 | |
Service Class | 99,130 | 4,147,481 | 887,717 | 42,298,516 | |
(1,240,542) | $(71,275,107) | 2,295,344 | $109,659,888 |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $42,297,287 | $197,646,474 | $226,083,552 | $(4,127) | $(10,198) | $13,845,884 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $1,338,435 | $— |
February 14, 2024
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 TRUSTEE | ||||||||||
Michael W. Roberge (k) (age 57) | 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) | N/A | |||||
INDEPENDENT TRUSTEES | ||||||||||
John P. Kavanaugh (age 69) | Trustee and Chair of Trustees | January 2009 | 136 | Private investor | N/A | |||||
Steven E. Buller (age 72) | Trustee | February 2014 | 136 | Private investor | N/A | |||||
John A. Caroselli (age 69) | Trustee | March 2017 | 136 | Private investor; JC Global Advisors, LLC (management consulting), President (since 2015) | N/A | |||||
Maureen R. Goldfarb (age 68) | Trustee | January 2009 | 136 | Private investor | N/A | |||||
Peter D. Jones (age 68) | Trustee | January 2019 | 136 | Private investor | N/A | |||||
James W. Kilman, Jr. (age 62) | 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) | |||||
Clarence Otis, Jr. (age 67) | Trustee | March 2017 | 136 | Private investor | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director | |||||
Maryanne L. Roepke (age 67) | Trustee | May 2014 | 136 | Private investor | N/A | |||||
Laurie J. Thomsen (age 66) | 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 50) | Assistant Secretary and Assistant Clerk | July 2005 | 136 | Massachusetts Financial Services Company, Senior Vice President and Senior Managing Counsel | ||||
Kino Clark (k) (age 55) | Assistant Treasurer | January 2012 | 136 | Massachusetts Financial Services Company, Vice President |
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 | ||||
John W. Clark, Jr. (k) (age 56) | Assistant Treasurer | April 2017 | 136 | Massachusetts Financial Services Company, Vice President | ||||
David L. DiLorenzo (k) (age 55) | President | July 2005 | 136 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 56) | Secretary and Clerk | April 2017 | 136 | Massachusetts Financial Services Company, Executive Vice President and General Counsel | ||||
Brian E. Langenfeld (k) (age 50) | Assistant Secretary and Assistant Clerk | June 2006 | 136 | Massachusetts Financial Services Company, Vice President and Managing Counsel | ||||
Rosa E. Licea-Mailloux (k) (age 47) | 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) | ||||
Amanda S. Mooradian (k) (age 44) | Assistant Secretary and Assistant Clerk | September 2018 | 136 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 53) | Assistant Secretary and Assistant Clerk | July 2005 | 136 | Massachusetts Financial Services Company, Vice President and Managing Counsel | ||||
Kasey L. Phillips (k) (age 53) | Assistant Treasurer | September 2012 | 136 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 49) | Assistant Secretary and Assistant Clerk | October 2014 | 136 | Massachusetts Financial Services Company, Vice President and Senior Managing Counsel | ||||
William B. Wilson (k) (age 41) | Assistant Secretary and Assistant Clerk | October 2022 | 136 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
James O. Yost (k) (age 63) | 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 Congress Street, Suite 1 Boston, MA 02114-2016 |
Distributor | Independent Registered Public Accounting Firm |
MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618 | Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 |
Portfolio Manager(s) | |
Eric Fischman Bradford Mak |
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. |
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Microsoft Corp. | 9.0% |
Alphabet, Inc., “A” | 5.3% |
Apple, Inc. | 4.1% |
JPMorgan Chase & Co. | 2.8% |
ConocoPhillips | 2.7% |
NVIDIA Corp. | 2.6% |
Amazon.com, Inc. | 2.4% |
Visa, Inc., “A” | 2.2% |
Mastercard, Inc., “A” | 2.0% |
Vertex Pharmaceuticals, Inc. | 1.9% |
Information Technology | 26.3% |
Financials | 15.9% |
Health Care | 13.5% |
Communication Services | 9.1% |
Industrials | 9.1% |
Consumer Staples | 7.8% |
Consumer Discretionary | 5.6% |
Materials | 4.1% |
Energy | 4.0% |
Real Estate | 2.8% |
Utilities | 0.9% |
(g) | The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and S&P Global Market Intelligence Inc. (“S&P Global Market Intelligence”). GICS is a service mark of MSCI and S&P Global Market Intelligence and has been licensed for use by MFS. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS. |
(b) | Security is not a benchmark constituent. |
(h) | Security was not held in the portfolio at period end. |
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr |
Initial Class | 10/09/1995 | 18.98% | 13.55% | 10.27% |
Service Class | 5/01/2000 | 18.66% | 13.27% | 10.00% |
Standard & Poor's 500 Stock Index (f) | 26.29% | 15.69% | 12.03% |
(f) | Source: FactSet Research Systems Inc. |
(g) | “Standard & Poor's®” and “S&P®” are registered trademarks of Standard & Poor's Financial Services LLC (“S&P”) and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and sublicensed for certain purposes by MFS. The S&P 500® is a product of S&P Dow Jones Indices LLC, and has been licensed for use by MFS. MFS's product(s) is not sponsored, endorsed, sold, or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates, and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing in such product(s). |
July 1, 2023 through December 31, 2023
Share Class | Annualized Expense Ratio | Beginning Account Value 7/01/23 | Ending Account Value 12/31/23 | Expenses Paid During Period (p) 7/01/23-12/31/23 | |
Initial Class | Actual | 0.78% | $1,000.00 | $1,068.29 | $4.07 |
Hypothetical (h) | 0.78% | $1,000.00 | $1,021.27 | $3.97 | |
Service Class | Actual | 1.03% | $1,000.00 | $1,067.03 | $5.37 |
Hypothetical (h) | 1.03% | $1,000.00 | $1,020.01 | $5.24 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 99.1% | ||||
Aerospace & Defense – 3.5% | ||||
Honeywell International, Inc. | 70,022 | $ 14,684,314 | ||
Howmet Aerospace, Inc. | 243,375 | 13,171,455 | ||
$27,855,769 | ||||
Alcoholic Beverages – 1.7% | ||||
Diageo PLC | 180,147 | $ 6,558,073 | ||
Pernod Ricard S.A. | 39,511 | 6,968,003 | ||
$13,526,076 | ||||
Apparel Manufacturers – 1.0% | ||||
LVMH Moet Hennessy Louis Vuitton SE | 9,716 | $ 7,868,579 | ||
Brokerage & Asset Managers – 1.4% | ||||
Charles Schwab Corp. | 70,616 | $ 4,858,381 | ||
NASDAQ, Inc. | 106,632 | 6,199,584 | ||
$11,057,965 | ||||
Business Services – 1.5% | ||||
Fiserv, Inc. (a) | 85,774 | $ 11,394,218 | ||
Cable TV – 1.8% | ||||
Cable One, Inc. | 6,813 | $ 3,792,048 | ||
Comcast Corp., “A” | 241,167 | 10,575,173 | ||
$14,367,221 | ||||
Chemicals – 0.5% | ||||
PPG Industries, Inc. | 24,143 | $ 3,610,586 | ||
Computer Software – 13.0% | ||||
Adobe Systems, Inc. (a) | 14,010 | $ 8,358,366 | ||
Check Point Software Technologies Ltd. (a) | 67,625 | 10,332,424 | ||
Microsoft Corp. | 188,914 | 71,039,220 | ||
Salesforce, Inc. (a) | 47,719 | 12,556,778 | ||
$102,286,788 | ||||
Computer Software - Systems – 4.1% | ||||
Apple, Inc. | 167,078 | $ 32,167,527 | ||
Construction – 1.1% | ||||
Masco Corp. | 44,180 | $ 2,959,176 | ||
Summit Materials, Inc., “A” (a) | 154,835 | 5,954,954 | ||
$8,914,130 | ||||
Consumer Products – 2.6% | ||||
Colgate-Palmolive Co. | 107,066 | $ 8,534,231 | ||
Kenvue, Inc. | 329,531 | 7,094,802 | ||
Kimberly-Clark Corp. | 39,850 | 4,842,174 | ||
$20,471,207 | ||||
Containers – 0.8% | ||||
Crown Holdings, Inc. | 67,118 | $ 6,180,897 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Electrical Equipment – 4.1% | ||||
AMETEK, Inc. | 48,593 | $ 8,012,500 | ||
Fortive Corp. | 58,885 | 4,335,703 | ||
Johnson Controls International PLC | 145,882 | 8,408,638 | ||
TE Connectivity Ltd. | 83,394 | 11,716,857 | ||
$32,473,698 | ||||
Electronics – 7.8% | ||||
Analog Devices, Inc. | 69,757 | $ 13,850,950 | ||
Applied Materials, Inc. | 66,733 | 10,815,417 | ||
ASML Holding N.V. | 9,578 | 7,208,047 | ||
NVIDIA Corp. | 40,709 | 20,159,911 | ||
Texas Instruments, Inc. | 53,325 | 9,089,779 | ||
$61,124,104 | ||||
Energy - Independent – 2.7% | ||||
ConocoPhillips | 183,742 | $ 21,326,934 | ||
Energy - Integrated – 1.3% | ||||
Exxon Mobil Corp. | 99,721 | $ 9,970,106 | ||
Food & Beverages – 0.9% | ||||
Mondelez International, Inc. | 98,000 | $ 7,098,140 | ||
Forest & Paper Products – 0.6% | ||||
Rayonier, Inc., REIT | 131,414 | $ 4,390,542 | ||
Health Maintenance Organizations – 1.6% | ||||
Cigna Group | 42,180 | $ 12,630,801 | ||
Insurance – 3.0% | ||||
Aon PLC | 21,358 | $ 6,215,605 | ||
Chubb Ltd. | 46,780 | 10,572,280 | ||
Willis Towers Watson PLC | 29,530 | 7,122,636 | ||
$23,910,521 | ||||
Internet – 6.0% | ||||
Alphabet, Inc., “A” (a) | 300,617 | $ 41,993,189 | ||
Alphabet, Inc., “C” (a) | 39,415 | 5,554,756 | ||
$47,547,945 | ||||
Leisure & Toys – 1.2% | ||||
Electronic Arts, Inc. | 69,642 | $ 9,527,722 | ||
Machinery & Tools – 1.2% | ||||
Eaton Corp. PLC | 40,360 | $ 9,719,495 | ||
Major Banks – 5.8% | ||||
Bank of America Corp. | 319,953 | $ 10,772,817 | ||
Goldman Sachs Group, Inc. | 33,335 | 12,859,643 | ||
JPMorgan Chase & Co. | 131,746 | 22,409,995 | ||
$46,042,455 | ||||
Medical & Health Technology & Services – 1.3% | ||||
ICON PLC (a) | 37,216 | $ 10,534,733 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Medical Equipment – 4.3% | ||||
Agilent Technologies, Inc. | 74,488 | $ 10,356,067 | ||
Becton, Dickinson and Co. | 43,529 | 10,613,676 | ||
Medtronic PLC | 152,571 | 12,568,799 | ||
$33,538,542 | ||||
Other Banks & Diversified Financials – 4.2% | ||||
Mastercard, Inc., “A” | 36,495 | $ 15,565,483 | ||
Visa, Inc., “A” | 67,924 | 17,684,013 | ||
$33,249,496 | ||||
Pharmaceuticals – 6.4% | ||||
Eli Lilly & Co. | 21,134 | $ 12,319,432 | ||
Merck & Co., Inc. | 83,207 | 9,071,227 | ||
Pfizer, Inc. | 216,256 | 6,226,010 | ||
Vertex Pharmaceuticals, Inc. (a) | 36,183 | 14,722,501 | ||
Zoetis, Inc. | 39,144 | 7,725,851 | ||
$50,065,021 | ||||
Pollution Control – 0.7% | ||||
Waste Management, Inc. | 30,655 | $ 5,490,310 | ||
Railroad & Shipping – 0.6% | ||||
Canadian Pacific Kansas City Ltd. | 57,852 | $ 4,573,779 | ||
Specialty Chemicals – 2.1% | ||||
DuPont de Nemours, Inc. | 112,749 | $ 8,673,781 | ||
Linde PLC | 19,514 | 8,014,595 | ||
$16,688,376 | ||||
Specialty Stores – 7.1% | ||||
Amazon.com, Inc. (a) | 123,476 | $ 18,760,943 | ||
Costco Wholesale Corp. | 17,506 | 11,555,361 | ||
Home Depot, Inc. | 35,839 | 12,420,005 | ||
Target Corp. | 60,074 | 8,555,739 | ||
Tractor Supply Co. | 21,768 | 4,680,773 | ||
$55,972,821 | ||||
Telecommunications - Wireless – 1.5% | ||||
American Tower Corp., REIT | 54,588 | $ 11,784,457 | ||
Telephone Services – 0.8% | ||||
Equinix, Inc., REIT | 7,625 | $ 6,141,099 | ||
Utilities - Electric Power – 0.9% | ||||
Xcel Energy, Inc. | 118,062 | $ 7,309,218 | ||
Total Common Stocks (Identified Cost, $421,402,585) | $780,811,278 | |||
Investment Companies (h) – 0.2% | ||||
Money Market Funds – 0.2% | ||||
MFS Institutional Money Market Portfolio, 5.42% (v) (Identified Cost, $1,511,618) | 1,511,753 | $ 1,512,055 | ||
Other Assets, Less Liabilities – 0.7% | 5,665,065 | |||
Net Assets – 100.0% | $787,988,398 |
(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 $1,512,055 and $780,811,278, respectively. | |||
(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: | |
REIT | Real Estate Investment Trust |
Financial Statements | Statement of Assets and Liabilities |
At 12/31/23Assets | |
Investments in unaffiliated issuers, at value (identified cost, $421,402,585) | $780,811,278 |
Investments in affiliated issuers, at value (identified cost, $1,511,618) | 1,512,055 |
Receivables for | |
Investments sold | 5,735,010 |
Fund shares sold | 145,754 |
Dividends | 851,225 |
Other assets | 234,866 |
Total assets | $789,290,188 |
Liabilities | |
Payables for | |
Fund shares reacquired | $1,106,232 |
Payable to affiliates | |
Investment adviser | 63,813 |
Administrative services fee | 1,169 |
Shareholder servicing costs | 262 |
Distribution and/or service fees | 11,499 |
Payable for independent Trustees' compensation | 12 |
Accrued expenses and other liabilities | 118,803 |
Total liabilities | $1,301,790 |
Net assets | $787,988,398 |
Net assets consist of | |
Paid-in capital | $368,317,772 |
Total distributable earnings (loss) | 419,670,626 |
Net assets | $787,988,398 |
Shares of beneficial interest outstanding | 22,131,114 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $369,576,656 | 10,269,785 | $35.99 |
Service Class | 418,411,742 | 11,861,329 | 35.28 |
Financial Statements | Statement of Operations |
Year ended 12/31/23 | |
Net investment income (loss) | |
Income | |
Dividends | $11,323,759 |
Dividends from affiliated issuers | 318,256 |
Income on securities loaned | 27,547 |
Other | 15,806 |
Foreign taxes withheld | (58,104) |
Total investment income | $11,627,264 |
Expenses | |
Management fee | $5,741,051 |
Distribution and/or service fees | 1,023,562 |
Shareholder servicing costs | 8,058 |
Administrative services fee | 120,665 |
Independent Trustees' compensation | 14,698 |
Custodian fee | 35,378 |
Shareholder communications | 35,800 |
Audit and tax fees | 66,839 |
Legal fees | 4,273 |
Miscellaneous | 32,274 |
Total expenses | $7,082,598 |
Reduction of expenses by investment adviser | (97,876) |
Net expenses | $6,984,722 |
Net investment income (loss) | $4,642,542 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $57,784,425 |
Affiliated issuers | 1,635 |
Foreign currency | (2,880) |
Net realized gain (loss) | $57,783,180 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $70,055,214 |
Affiliated issuers | (2,269) |
Translation of assets and liabilities in foreign currencies | 5,244 |
Net unrealized gain (loss) | $70,058,189 |
Net realized and unrealized gain (loss) | $127,841,369 |
Change in net assets from operations | $132,483,911 |
Financial Statements | Statements of Changes in Net Assets |
Year ended | ||
12/31/23 | 12/31/22 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $4,642,542 | $4,347,033 |
Net realized gain (loss) | 57,783,180 | 40,767,162 |
Net unrealized gain (loss) | 70,058,189 | (185,010,919) |
Change in net assets from operations | $132,483,911 | $(139,896,724) |
Total distributions to shareholders | $(46,552,177) | $(109,065,257) |
Change in net assets from fund share transactions | $(58,548,389) | $177,975,178 |
Total change in net assets | $27,383,345 | $(70,986,803) |
Net assets | ||
At beginning of period | 760,605,053 | 831,591,856 |
At end of period | $787,988,398 | $760,605,053 |
Financial Statements | Financial Highlights |
Initial Class | Year ended | ||||
12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | |
Net asset value, beginning of period | $32.27 | $44.72 | $36.57 | $33.27 | $27.05 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.25 | $0.27 | $0.21 | $0.25 | $0.25 |
Net realized and unrealized gain (loss) | 5.69 | (7.41) | 9.53 | 4.26 | 8.08 |
Total from investment operations | $5.94 | $(7.14) | $9.74 | $4.51 | $8.33 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.26) | $(0.26) | $(0.26) | $(0.21) | $(0.22) |
From net realized gain | (1.96) | (5.05) | (1.33) | (1.00) | (1.89) |
Total distributions declared to shareholders | $(2.22) | $(5.31) | $(1.59) | $(1.21) | $(2.11) |
Net asset value, end of period (x) | $35.99 | $32.27 | $44.72 | $36.57 | $33.27 |
Total return (%) (k)(r)(s)(x) | 18.98 | (16.49) | 26.81 | 13.87 | 31.58 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.79 | 0.80 | 0.79 | 0.80 | 0.80 |
Expenses after expense reductions | 0.78 | 0.78 | 0.78 | 0.79 | 0.79 |
Net investment income (loss) | 0.74 | 0.74 | 0.50 | 0.78 | 0.80 |
Portfolio turnover | 20 | 17 | 13 | 19 | 18 |
Net assets at end of period (000 omitted) | $369,577 | $357,428 | $296,678 | $269,852 | $265,499 |
Service Class | Year ended | ||||
12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | |
Net asset value, beginning of period | $31.67 | $43.97 | $35.99 | $32.77 | $26.68 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.16 | $0.16 | $0.10 | $0.17 | $0.17 |
Net realized and unrealized gain (loss) | 5.57 | (7.26) | 9.38 | 4.19 | 7.97 |
Total from investment operations | $5.73 | $(7.10) | $9.48 | $4.36 | $8.14 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.16) | $(0.15) | $(0.17) | $(0.14) | $(0.16) |
From net realized gain | (1.96) | (5.05) | (1.33) | (1.00) | (1.89) |
Total distributions declared to shareholders | $(2.12) | $(5.20) | $(1.50) | $(1.14) | $(2.05) |
Net asset value, end of period (x) | $35.28 | $31.67 | $43.97 | $35.99 | $32.77 |
Total return (%) (k)(r)(s)(x) | 18.66 | (16.69) | 26.51 | 13.60 | 31.25 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 1.04 | 1.05 | 1.04 | 1.05 | 1.05 |
Expenses after expense reductions | 1.03 | 1.03 | 1.03 | 1.04 | 1.04 |
Net investment income (loss) | 0.49 | 0.44 | 0.24 | 0.53 | 0.55 |
Portfolio turnover | 20 | 17 | 13 | 19 | 18 |
Net assets at end of period (000 omitted) | $418,412 | $403,177 | $534,914 | $496,093 | $453,132 |
(d) | Per share data is based on average shares outstanding. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(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 |
Equity Securities | $780,811,278 | $— | $— | $780,811,278 |
Mutual Funds | 1,512,055 | — | — | 1,512,055 |
Total | $782,323,333 | $— | $— | $782,323,333 |
Year ended 12/31/23 | Year ended 12/31/22 | |
Ordinary income (including any short-term capital gains) | $4,374,191 | $11,904,201 |
Long-term capital gains | 42,177,986 | 97,161,056 |
Total distributions | $46,552,177 | $109,065,257 |
As of 12/31/23 | |
Cost of investments | $424,842,931 |
Gross appreciation | 365,382,811 |
Gross depreciation | (7,902,409) |
Net unrealized appreciation (depreciation) | $357,480,402 |
Undistributed ordinary income | 4,639,208 |
Undistributed long-term capital gain | 57,551,171 |
Other temporary differences | (155) |
Total distributable earnings (loss) | $419,670,626 |
Year ended 12/31/23 | Year ended 12/31/22 | ||
Initial Class | $21,538,672 | $49,941,824 | |
Service Class | 25,013,505 | 59,123,433 | |
Total | $46,552,177 | $109,065,257 |
Up to $1 billion | 0.75% |
In excess of $1 billion and up to $2.5 billion | 0.65% |
In excess of $2.5 billion | 0.60% |
Year ended 12/31/23 | Year ended 12/31/22 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 878,229 | $29,356,546 | 4,180,159 | $160,083,504 | |
Service Class | 376,902 | 12,504,945 | 388,092 | 14,141,886 | |
1,255,131 | $41,861,491 | 4,568,251 | $174,225,390 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | 648,365 | $21,538,672 | 1,477,569 | $49,941,824 | |
Service Class | 767,521 | 25,013,505 | 1,780,826 | 59,123,433 | |
1,415,886 | $46,552,177 | 3,258,395 | $109,065,257 | ||
Shares reacquired | |||||
Initial Class | (2,331,464) | $(79,361,286) | (1,216,784) | $(46,566,318) | |
Service Class | (2,014,339) | (67,600,771) | (1,603,763) | (58,749,151) | |
(4,345,803) | $(146,962,057) | (2,820,547) | $(105,315,469) | ||
Net change | |||||
Initial Class | (804,870) | $(28,466,068) | 4,440,944 | $163,459,010 | |
Service Class | (869,916) | (30,082,321) | 565,155 | 14,516,168 | |
(1,674,786) | $(58,548,389) | 5,006,099 | $177,975,178 |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $9,390,392 | $74,852,821 | $82,730,524 | $1,635 | $(2,269) | $1,512,055 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $318,256 | $— |
February 14, 2024
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 TRUSTEE | ||||||||||
Michael W. Roberge (k) (age 57) | 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) | N/A | |||||
INDEPENDENT TRUSTEES | ||||||||||
John P. Kavanaugh (age 69) | Trustee and Chair of Trustees | January 2009 | 136 | Private investor | N/A | |||||
Steven E. Buller (age 72) | Trustee | February 2014 | 136 | Private investor | N/A | |||||
John A. Caroselli (age 69) | Trustee | March 2017 | 136 | Private investor; JC Global Advisors, LLC (management consulting), President (since 2015) | N/A | |||||
Maureen R. Goldfarb (age 68) | Trustee | January 2009 | 136 | Private investor | N/A | |||||
Peter D. Jones (age 68) | Trustee | January 2019 | 136 | Private investor | N/A | |||||
James W. Kilman, Jr. (age 62) | 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) | |||||
Clarence Otis, Jr. (age 67) | Trustee | March 2017 | 136 | Private investor | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director | |||||
Maryanne L. Roepke (age 67) | Trustee | May 2014 | 136 | Private investor | N/A | |||||
Laurie J. Thomsen (age 66) | 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 50) | Assistant Secretary and Assistant Clerk | July 2005 | 136 | Massachusetts Financial Services Company, Senior Vice President and Senior Managing Counsel | ||||
Kino Clark (k) (age 55) | Assistant Treasurer | January 2012 | 136 | Massachusetts Financial Services Company, Vice President |
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 | ||||
John W. Clark, Jr. (k) (age 56) | Assistant Treasurer | April 2017 | 136 | Massachusetts Financial Services Company, Vice President | ||||
David L. DiLorenzo (k) (age 55) | President | July 2005 | 136 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 56) | Secretary and Clerk | April 2017 | 136 | Massachusetts Financial Services Company, Executive Vice President and General Counsel | ||||
Brian E. Langenfeld (k) (age 50) | Assistant Secretary and Assistant Clerk | June 2006 | 136 | Massachusetts Financial Services Company, Vice President and Managing Counsel | ||||
Rosa E. Licea-Mailloux (k) (age 47) | 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) | ||||
Amanda S. Mooradian (k) (age 44) | Assistant Secretary and Assistant Clerk | September 2018 | 136 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 53) | Assistant Secretary and Assistant Clerk | July 2005 | 136 | Massachusetts Financial Services Company, Vice President and Managing Counsel | ||||
Kasey L. Phillips (k) (age 53) | Assistant Treasurer | September 2012 | 136 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 49) | Assistant Secretary and Assistant Clerk | October 2014 | 136 | Massachusetts Financial Services Company, Vice President and Senior Managing Counsel | ||||
William B. Wilson (k) (age 41) | Assistant Secretary and Assistant Clerk | October 2022 | 136 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
James O. Yost (k) (age 63) | 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 Congress Street, Suite 1 Boston, MA 02114-2016 |
Distributor | Independent Registered Public Accounting Firm |
MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618 | Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 |
Portfolio Manager(s) | |
Jude Jason Alison O'Neill Mackey |
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. |
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28 |
Monolithic Power Systems, Inc. | 3.5% |
Cadence Design Systems, Inc. | 3.2% |
Arthur J. Gallagher & Co. | 2.8% |
Verisk Analytics, Inc., “A” | 2.6% |
AMETEK, Inc. | 2.5% |
MSCI, Inc. | 2.5% |
Vulcan Materials Co. | 2.4% |
Take-Two Interactive Software, Inc. | 2.3% |
Gartner, Inc. | 2.3% |
Copart, Inc. | 2.3% |
Information Technology | 24.5% |
Industrials | 21.8% |
Health Care | 16.3% |
Consumer Discretionary | 12.0% |
Financials | 9.6% |
Communication Services | 4.8% |
Materials | 2.8% |
Real Estate | 2.4% |
Energy | 1.9% |
Consumer Staples | 1.6% |
Equity Warrants (o) | 0.0% |
(g) | The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and S&P Global Market Intelligence Inc. (“S&P Global Market Intelligence”). GICS is a service mark of MSCI and S&P Global Market Intelligence and has been licensed for use by MFS. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS. |
(o) | Less than 0.1%. |
(b) | Security is not a benchmark constituent. |
(h) | Security was not held in the portfolio at period end. |
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr |
Initial Class | 4/28/2000 | 21.32% | 13.31% | 11.12% |
Service Class | 5/01/2000 | 20.97% | 13.05% | 10.85% |
Russell Midcap® Growth Index (f) | 25.87% | 13.81% | 10.57% |
(f) | Source: FactSet Research Systems Inc. |
(h) | Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and/or Russell ratings or underlying data and no party may rely on any Russell Indexes and/or Russell ratings and/or underlying data contained in this document. No further distribution of Russell Data is permitted without Russell's express written consent. Russell does not promote, sponsor, or endorse the content of this document. |
July 1, 2023 through December 31, 2023
Share Class | Annualized Expense Ratio | Beginning Account Value 7/01/23 | Ending Account Value 12/31/23 | Expenses Paid During Period (p) 7/01/23-12/31/23 | |
Initial Class | Actual | 0.80% | $1,000.00 | $1,073.75 | $4.18 |
Hypothetical (h) | 0.80% | $1,000.00 | $1,021.17 | $4.08 | |
Service Class | Actual | 1.05% | $1,000.00 | $1,073.59 | $5.49 |
Hypothetical (h) | 1.05% | $1,000.00 | $1,019.91 | $5.35 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 97.7% | ||||
Aerospace & Defense – 3.3% | ||||
Hexcel Corp. | 29,101 | $ 2,146,199 | ||
Howmet Aerospace, Inc. | 134,063 | 7,255,489 | ||
TransDigm Group, Inc. | 1,863 | 1,884,611 | ||
$11,286,299 | ||||
Automotive – 2.3% | ||||
Copart, Inc. (a) | 161,902 | $ 7,933,198 | ||
Brokerage & Asset Managers – 1.1% | ||||
LPL Financial Holdings, Inc. | 11,464 | $ 2,609,436 | ||
NASDAQ, Inc. | 20,947 | 1,217,858 | ||
$3,827,294 | ||||
Business Services – 13.5% | ||||
CoStar Group, Inc. (a) | 78,862 | $ 6,891,750 | ||
Equifax, Inc. | 11,482 | 2,839,384 | ||
Factset Research Systems, Inc. | 6,557 | 3,128,017 | ||
FleetCor Technologies, Inc. (a) | 10,234 | 2,892,231 | ||
Morningstar, Inc. | 18,136 | 5,191,248 | ||
MSCI, Inc. | 15,206 | 8,601,274 | ||
TransUnion | 42,104 | 2,892,966 | ||
Tyler Technologies, Inc. (a) | 12,920 | 5,402,110 | ||
Verisk Analytics, Inc., “A” | 37,337 | 8,918,316 | ||
$46,757,296 | ||||
Computer Software – 8.6% | ||||
ANSYS, Inc. (a) | 8,085 | $ 2,933,885 | ||
Autodesk, Inc. (a) | 12,467 | 3,035,465 | ||
Bumble, Inc., “A” (a) | 22,532 | 332,121 | ||
Cadence Design Systems, Inc. (a) | 40,160 | 10,938,379 | ||
Datadog, Inc., “A” (a) | 31,494 | 3,822,742 | ||
Dun & Bradstreet Holdings, Inc. | 80,744 | 944,705 | ||
Synopsys, Inc. (a) | 14,856 | 7,649,503 | ||
$29,656,800 | ||||
Computer Software - Systems – 5.9% | ||||
Arista Networks, Inc. (a) | 11,924 | $ 2,808,221 | ||
Constellation Software, Inc. | 2,904 | 7,200,048 | ||
Guidewire Software, Inc. (a) | 10,497 | 1,144,593 | ||
HubSpot, Inc. (a) | 5,181 | 3,007,778 | ||
ServiceNow, Inc. (a) | 8,757 | 6,186,733 | ||
$20,347,373 | ||||
Construction – 3.8% | ||||
AZEK Co., Inc. (a) | 91,022 | $ 3,481,592 | ||
Martin Marietta Materials, Inc. | 3,100 | 1,546,621 | ||
Vulcan Materials Co. | 35,936 | 8,157,831 | ||
$13,186,044 | ||||
Consumer Products – 1.6% | ||||
Church & Dwight Co., Inc. | 49,758 | $ 4,705,117 | ||
ODDITY Tech Ltd. (a) | 21,114 | 982,434 | ||
$5,687,551 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Consumer Services – 1.4% | ||||
Bright Horizons Family Solutions, Inc. (a) | 49,832 | $ 4,696,168 | ||
Electrical Equipment – 5.4% | ||||
AMETEK, Inc. | 53,610 | $ 8,839,753 | ||
Hubbell, Inc. | 7,720 | 2,539,340 | ||
Littlefuse, Inc. | 10,864 | 2,906,772 | ||
nVent Electric PLC | 34,772 | 2,054,677 | ||
Rockwell Automation, Inc. | 8,114 | 2,519,235 | ||
$18,859,777 | ||||
Electronics – 5.7% | ||||
ASM International N.V. | 13,406 | $ 6,955,051 | ||
Entegris, Inc. | 4,724 | 566,030 | ||
Monolithic Power Systems, Inc. | 19,372 | 12,219,470 | ||
$19,740,551 | ||||
Energy - Independent – 1.9% | ||||
Chesapeake Energy Corp. | 47,293 | $ 3,638,723 | ||
Diamondback Energy, Inc. | 19,910 | 3,087,643 | ||
$6,726,366 | ||||
Engineering - Construction – 0.6% | ||||
Quanta Services, Inc. | 9,098 | $ 1,963,348 | ||
Entertainment – 1.6% | ||||
Spotify Technology S.A. (a) | 28,757 | $ 5,403,728 | ||
Gaming & Lodging – 3.5% | ||||
DraftKings, Inc. (a) | 85,179 | $ 3,002,560 | ||
Hyatt Hotels Corp. | 39,243 | 5,117,680 | ||
Las Vegas Sands Corp. | 31,631 | 1,556,561 | ||
Red Rock Resorts, Inc. | 45,235 | 2,412,382 | ||
$12,089,183 | ||||
General Merchandise – 0.4% | ||||
Five Below, Inc. (a) | 6,825 | $ 1,454,817 | ||
Insurance – 2.8% | ||||
Arthur J. Gallagher & Co. | 42,533 | $ 9,564,821 | ||
Internet – 2.6% | ||||
Gartner, Inc. (a) | 17,841 | $ 8,048,254 | ||
Match Group, Inc. (a) | 29,427 | 1,074,085 | ||
$9,122,339 | ||||
Leisure & Toys – 2.6% | ||||
Electronic Arts, Inc. | 7,047 | $ 964,100 | ||
Take-Two Interactive Software, Inc. (a) | 50,205 | 8,080,495 | ||
$9,044,595 | ||||
Machinery & Tools – 2.4% | ||||
Ingersoll Rand, Inc. | 43,991 | $ 3,402,264 | ||
Wabtec Corp. | 39,974 | 5,072,701 | ||
$8,474,965 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Medical & Health Technology & Services – 4.9% | ||||
Chemed Corp. | 4,033 | $ 2,358,297 | ||
Henry Schein, Inc. (a) | 13,062 | 988,924 | ||
ICON PLC (a) | 21,127 | 5,980,420 | ||
IDEXX Laboratories, Inc. (a) | 6,572 | 3,647,788 | ||
Veeva Systems, Inc. (a) | 21,146 | 4,071,028 | ||
$17,046,457 | ||||
Medical Equipment – 8.9% | ||||
Agilent Technologies, Inc. | 40,050 | $ 5,568,152 | ||
Bio-Techne Corp. | 4,568 | 352,467 | ||
Bruker BioSciences Corp. | 68,731 | 5,050,354 | ||
DexCom, Inc. (a) | 37,527 | 4,656,725 | ||
Envista Holdings Corp. (a) | 30,756 | 739,989 | ||
Masimo Corp. (a) | 15,179 | 1,779,131 | ||
STERIS PLC | 30,427 | 6,689,376 | ||
Waters Corp. (a) | 4,963 | 1,633,968 | ||
West Pharmaceutical Services, Inc. | 12,817 | 4,513,122 | ||
$30,983,284 | ||||
Pharmaceuticals – 2.4% | ||||
Alnylam Pharmaceuticals, Inc. (a) | 2,210 | $ 423,016 | ||
Argenx SE, ADR (a) | 5,879 | 2,236,548 | ||
Ascendis Pharma, ADR (a) | 29,416 | 3,704,945 | ||
Legend Biotech Corp., ADR (a) | 34,470 | 2,074,060 | ||
$8,438,569 | ||||
Pollution Control – 1.1% | ||||
GFL Environmental, Inc. | 87,036 | $ 3,003,612 | ||
Waste Connections, Inc. | 6,067 | 905,621 | ||
$3,909,233 | ||||
Printing & Publishing – 2.3% | ||||
Warner Music Group Corp. | 26,251 | $ 939,523 | ||
Wolters Kluwer N.V. | 49,465 | 7,027,908 | ||
$7,967,431 | ||||
Restaurants – 1.9% | ||||
Chipotle Mexican Grill, Inc., “A” (a) | 2,032 | $ 4,647,103 | ||
Wingstop, Inc. | 8,105 | 2,079,581 | ||
$6,726,684 | ||||
Specialty Stores – 4.8% | ||||
Lululemon Athletica, Inc. (a) | 10,790 | $ 5,516,819 | ||
O'Reilly Automotive, Inc. (a) | 6,340 | 6,023,507 | ||
Tractor Supply Co. | 7,811 | 1,679,600 | ||
Ulta Beauty, Inc. (a) | 6,915 | 3,388,281 | ||
$16,608,207 | ||||
Telecommunications - Wireless – 0.4% | ||||
SBA Communications Corp., REIT | 5,822 | $ 1,476,983 | ||
Total Common Stocks (Identified Cost, $191,465,542) | $338,979,361 |
Issuer | Strike Price | First Exercise | Shares/Par | Value ($) |
Warrants – 0.0% | ||||
Computer Software - Systems – 0.0% | ||||
Constellation Software, Inc. (CAD 100 principal amount of Series 2 Debentures for 1 warrant, Expiration 3/31/40) (a) (Identified Cost, $0) | CAD 11.5 | N/A | 2,984 | $ 0 |
Investment Companies (h) – 2.4% | ||||
Money Market Funds – 2.4% | ||||
MFS Institutional Money Market Portfolio, 5.42% (v) (Identified Cost, $8,192,058) | 8,192,205 | $ 8,193,843 | ||
Other Assets, Less Liabilities – (0.1)% | (420,963) | |||
Net Assets – 100.0% | $346,752,241 |
(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 $8,193,843 and $338,979,361, respectively. | |||
(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 |
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: | |
CAD | Canadian Dollar |
Financial Statements | Statement of Assets and Liabilities |
At 12/31/23Assets | |
Investments in unaffiliated issuers, at value (identified cost, $191,465,542) | $338,979,361 |
Investments in affiliated issuers, at value (identified cost, $8,192,058) | 8,193,843 |
Foreign currency, at value (identified cost, $22) | 22 |
Receivables for | |
Fund shares sold | 78,087 |
Dividends | 54,033 |
Other assets | 1,539 |
Total assets | $347,306,885 |
Liabilities | |
Payables for | |
Fund shares reacquired | $455,126 |
Payable to affiliates | |
Investment adviser | 28,112 |
Administrative services fee | 585 |
Shareholder servicing costs | 180 |
Distribution and/or service fees | 3,295 |
Payable for independent Trustees' compensation | 15 |
Accrued expenses and other liabilities | 67,331 |
Total liabilities | $554,644 |
Net assets | $346,752,241 |
Net assets consist of | |
Paid-in capital | $176,168,716 |
Total distributable earnings (loss) | 170,583,525 |
Net assets | $346,752,241 |
Shares of beneficial interest outstanding | 42,633,449 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $226,799,231 | 26,460,505 | $8.57 |
Service Class | 119,953,010 | 16,172,944 | 7.42 |
Financial Statements | Statement of Operations |
Year ended 12/31/23 | |
Net investment income (loss) | |
Income | |
Dividends | $2,018,154 |
Dividends from affiliated issuers | 417,403 |
Other | 7,194 |
Interest | 5,341 |
Income on securities loaned | 5,185 |
Foreign taxes withheld | (44,349) |
Total investment income | $2,408,928 |
Expenses | |
Management fee | $2,477,130 |
Distribution and/or service fees | 279,185 |
Shareholder servicing costs | 4,895 |
Administrative services fee | 57,897 |
Independent Trustees' compensation | 7,633 |
Custodian fee | 18,689 |
Shareholder communications | 10,640 |
Audit and tax fees | 70,821 |
Legal fees | 1,835 |
Miscellaneous | 26,411 |
Total expenses | $2,955,136 |
Reduction of expenses by investment adviser | (42,220) |
Net expenses | $2,912,916 |
Net investment income (loss) | $(503,988) |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $23,936,437 |
Affiliated issuers | 547 |
Foreign currency | 460 |
Net realized gain (loss) | $23,937,444 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $40,315,984 |
Affiliated issuers | (910) |
Translation of assets and liabilities in foreign currencies | 732 |
Net unrealized gain (loss) | $40,315,806 |
Net realized and unrealized gain (loss) | $64,253,250 |
Change in net assets from operations | $63,749,262 |
Financial Statements | Statements of Changes in Net Assets |
Year ended | ||
12/31/23 | 12/31/22 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $(503,988) | $(853,816) |
Net realized gain (loss) | 23,937,444 | 4,209,338 |
Net unrealized gain (loss) | 40,315,806 | (131,622,812) |
Change in net assets from operations | $63,749,262 | $(128,267,290) |
Total distributions to shareholders | $(4,657,287) | $(51,377,023) |
Change in net assets from fund share transactions | $(28,044,013) | $46,656,883 |
Total change in net assets | $31,047,962 | $(132,987,430) |
Net assets | ||
At beginning of period | 315,704,279 | 448,691,709 |
At end of period | $346,752,241 | $315,704,279 |
Financial Statements | Financial Highlights |
Initial Class | Year ended | ||||
12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | |
Net asset value, beginning of period | $7.16 | $11.72 | $12.64 | $9.96 | $8.23 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $(0.01) | $(0.01) | $(0.05) | $(0.03) | $(0.01) |
Net realized and unrealized gain (loss) | 1.53 | (3.28) | 1.78 | 3.53 | 3.10 |
Total from investment operations | $1.52 | $(3.29) | $1.73 | $3.50 | $3.09 |
Less distributions declared to shareholders | |||||
From net realized gain | $(0.11) | $(1.27) | $(2.65) | $(0.82) | $(1.36) |
Net asset value, end of period (x) | $8.57 | $7.16 | $11.72 | $12.64 | $9.96 |
Total return (%) (k)(r)(s)(x) | 21.32 | (28.70) | 14.11 | 36.48 | 38.66 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.81 | 0.81 | 0.81 | 0.81 | 0.81 |
Expenses after expense reductions | 0.80 | 0.80 | 0.79 | 0.80 | 0.80 |
Net investment income (loss) | (0.07) | (0.17) | (0.44) | (0.26) | (0.07) |
Portfolio turnover | 31 | 27 | 18 | 40 | 17 |
Net assets at end of period (000 omitted) | $226,799 | $210,790 | $306,174 | $311,988 | $290,512 |
Service Class | Year ended | ||||
12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | |
Net asset value, beginning of period | $6.23 | $10.43 | $11.53 | $9.17 | $7.68 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $(0.02) | $(0.03) | $(0.08) | $(0.05) | $(0.03) |
Net realized and unrealized gain (loss) | 1.32 | (2.90) | 1.63 | 3.23 | 2.88 |
Total from investment operations | $1.30 | $(2.93) | $1.55 | $3.18 | $2.85 |
Less distributions declared to shareholders | |||||
From net realized gain | $(0.11) | $(1.27) | $(2.65) | $(0.82) | $(1.36) |
Net asset value, end of period (x) | $7.42 | $6.23 | $10.43 | $11.53 | $9.17 |
Total return (%) (k)(r)(s)(x) | 20.97 | (28.79) | 13.88 | 36.12 | 38.28 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 1.06 | 1.06 | 1.06 | 1.06 | 1.06 |
Expenses after expense reductions | 1.05 | 1.05 | 1.04 | 1.05 | 1.05 |
Net investment income (loss) | (0.32) | (0.41) | (0.68) | (0.51) | (0.32) |
Portfolio turnover | 31 | 27 | 18 | 40 | 17 |
Net assets at end of period (000 omitted) | $119,953 | $104,914 | $142,517 | $131,845 | $103,504 |
(d) | Per share data is based on average shares outstanding. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(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 |
Equity Securities: | ||||
United States | $304,889,133 | $— | $— | $304,889,133 |
Netherlands | 13,982,959 | — | — | 13,982,959 |
Canada | 11,109,282 | 0 | — | 11,109,282 |
Denmark | 3,704,945 | — | — | 3,704,945 |
Belgium | 2,236,548 | — | — | 2,236,548 |
China | 2,074,060 | — | — | 2,074,060 |
Israel | 982,434 | — | — | 982,434 |
Mutual Funds | 8,193,843 | — | — | 8,193,843 |
Total | $347,173,204 | $— | $— | $347,173,204 |
Year ended 12/31/23 | Year ended 12/31/22 | |
Long-term capital gains | $4,657,287 | $51,377,023 |
As of 12/31/23 | |
Cost of investments | $200,367,863 |
Gross appreciation | 151,383,081 |
Gross depreciation | (4,577,740) |
Net unrealized appreciation (depreciation) | $146,805,341 |
Undistributed long-term capital gain | 23,778,984 |
Other temporary differences | (800) |
Total distributable earnings (loss) | $170,583,525 |
Year ended 12/31/23 | Year ended 12/31/22 | ||
Initial Class | $2,924,090 | $33,177,661 | |
Service Class | 1,733,197 | 18,199,362 | |
Total | $4,657,287 | $51,377,023 |
Up to $1 billion | 0.75% |
In excess of $1 billion | 0.70% |
Year ended 12/31/23 | Year ended 12/31/22 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 2,145,987 | $16,486,910 | 2,834,622 | $24,426,303 | |
Service Class | 2,192,563 | 14,771,729 | 3,913,069 | 29,932,462 | |
4,338,550 | $31,258,639 | 6,747,691 | $54,358,765 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | 372,623 | $2,895,280 | 4,314,495 | $32,833,305 | |
Service Class | 257,533 | 1,733,197 | 2,749,148 | 18,199,362 | |
630,156 | $4,628,477 | 7,063,643 | $51,032,667 | ||
Shares reacquired | |||||
Initial Class | (5,479,008) | $(42,898,608) | (3,856,490) | $(32,740,496) | |
Service Class | (3,122,292) | (21,032,521) | (3,480,324) | (25,994,053) | |
(8,601,300) | $(63,931,129) | (7,336,814) | $(58,734,549) | ||
Net change | |||||
Initial Class | (2,960,398) | $(23,516,418) | 3,292,627 | $24,519,112 | |
Service Class | (672,196) | (4,527,595) | 3,181,893 | 22,137,771 | |
(3,632,594) | $(28,044,013) | 6,474,520 | $46,656,883 |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $7,781,244 | $43,345,344 | $42,932,382 | $547 | $(910) | $8,193,843 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $417,403 | $— |
February 14, 2024
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 TRUSTEE | ||||||||||
Michael W. Roberge (k) (age 57) | 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) | N/A | |||||
INDEPENDENT TRUSTEES | ||||||||||
John P. Kavanaugh (age 69) | Trustee and Chair of Trustees | January 2009 | 136 | Private investor | N/A | |||||
Steven E. Buller (age 72) | Trustee | February 2014 | 136 | Private investor | N/A | |||||
John A. Caroselli (age 69) | Trustee | March 2017 | 136 | Private investor; JC Global Advisors, LLC (management consulting), President (since 2015) | N/A | |||||
Maureen R. Goldfarb (age 68) | Trustee | January 2009 | 136 | Private investor | N/A | |||||
Peter D. Jones (age 68) | Trustee | January 2019 | 136 | Private investor | N/A | |||||
James W. Kilman, Jr. (age 62) | 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) | |||||
Clarence Otis, Jr. (age 67) | Trustee | March 2017 | 136 | Private investor | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director | |||||
Maryanne L. Roepke (age 67) | Trustee | May 2014 | 136 | Private investor | N/A | |||||
Laurie J. Thomsen (age 66) | 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 50) | Assistant Secretary and Assistant Clerk | July 2005 | 136 | Massachusetts Financial Services Company, Senior Vice President and Senior Managing Counsel | ||||
Kino Clark (k) (age 55) | Assistant Treasurer | January 2012 | 136 | Massachusetts Financial Services Company, Vice President |
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 | ||||
John W. Clark, Jr. (k) (age 56) | Assistant Treasurer | April 2017 | 136 | Massachusetts Financial Services Company, Vice President | ||||
David L. DiLorenzo (k) (age 55) | President | July 2005 | 136 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 56) | Secretary and Clerk | April 2017 | 136 | Massachusetts Financial Services Company, Executive Vice President and General Counsel | ||||
Brian E. Langenfeld (k) (age 50) | Assistant Secretary and Assistant Clerk | June 2006 | 136 | Massachusetts Financial Services Company, Vice President and Managing Counsel | ||||
Rosa E. Licea-Mailloux (k) (age 47) | 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) | ||||
Amanda S. Mooradian (k) (age 44) | Assistant Secretary and Assistant Clerk | September 2018 | 136 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 53) | Assistant Secretary and Assistant Clerk | July 2005 | 136 | Massachusetts Financial Services Company, Vice President and Managing Counsel | ||||
Kasey L. Phillips (k) (age 53) | Assistant Treasurer | September 2012 | 136 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 49) | Assistant Secretary and Assistant Clerk | October 2014 | 136 | Massachusetts Financial Services Company, Vice President and Senior Managing Counsel | ||||
William B. Wilson (k) (age 41) | Assistant Secretary and Assistant Clerk | October 2022 | 136 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
James O. Yost (k) (age 63) | 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 Congress Street, Suite 1 Boston, MA 02114-2016 |
Distributor | Independent Registered Public Accounting Firm |
MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618 | Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 |
Portfolio Manager(s) | |
Eric Braz Eric Fischman |
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. |
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29 |
GFL Environmental, Inc. | 2.1% |
Summit Materials, Inc., “A” | 2.1% |
Sensata Technologies Holding PLC | 1.9% |
RB Global, Inc. | 1.8% |
DoubleVerify Holdings, Inc. | 1.8% |
Jacobs Solutions, Inc. | 1.7% |
TopBuild Corp. | 1.7% |
nVent Electric PLC | 1.7% |
Five9, Inc. | 1.7% |
Crane Co. | 1.7% |
Industrials | 24.0% |
Information Technology | 20.5% |
Health Care | 19.5% |
Consumer Discretionary | 11.5% |
Materials | 5.2% |
Energy | 4.8% |
Financials | 4.4% |
Consumer Staples | 3.6% |
Real Estate | 2.3% |
Communication Services | 0.5% |
Equity Warrants (o) | 0.0% |
(g) | The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and S&P Global Market Intelligence Inc. (“S&P Global Market Intelligence”). GICS is a service mark of MSCI and S&P Global Market Intelligence and has been licensed for use by MFS. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS. |
(o) | Less than 0.1%. |
(b) | Security is not a benchmark constituent. |
(h) | Security was not held in the portfolio at period end. |
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr |
Initial Class | 5/01/1998 | 14.41% | 11.08% | 7.67% |
Service Class | 5/01/2000 | 14.25% | 10.81% | 7.41% |
Russell 2000® Growth Index (f) | 18.66% | 9.22% | 7.16% |
(f) | Source: FactSet Research Systems Inc. |
(h) | Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and/or Russell ratings or underlying data and no party may rely on any Russell Indexes and/or Russell ratings and/or underlying data contained in this document. No further distribution of Russell Data is permitted without Russell's express written consent. Russell does not promote, sponsor, or endorse the content of this document. |
July 1, 2023 through December 31, 2023
Share Class | Annualized Expense Ratio | Beginning Account Value 7/01/23 | Ending Account Value 12/31/23 | Expenses Paid During Period (p) 7/01/23-12/31/23 | |
Initial Class | Actual | 0.87% | $1,000.00 | $1,032.72 | $4.46 |
Hypothetical (h) | 0.87% | $1,000.00 | $1,020.82 | $4.43 | |
Service Class | Actual | 1.12% | $1,000.00 | $1,031.67 | $5.74 |
Hypothetical (h) | 1.12% | $1,000.00 | $1,019.56 | $5.70 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 96.3% | ||||
Aerospace & Defense – 3.7% | ||||
AeroVironment, Inc. (a) | 29,590 | $ 3,729,524 | ||
CACI International, Inc., “A” (a) | 33,807 | 10,948,735 | ||
KBR, Inc. | 212,240 | 11,760,218 | ||
$26,438,477 | ||||
Apparel Manufacturers – 1.9% | ||||
Deckers Outdoor Corp. (a) | 7,197 | $ 4,810,691 | ||
On Holding AG (a) | 92,600 | 2,497,422 | ||
Skechers USA, Inc., “A” (a) | 99,974 | 6,232,379 | ||
$13,540,492 | ||||
Automotive – 1.1% | ||||
Visteon Corp. (a) | 60,395 | $ 7,543,336 | ||
Biotechnology – 1.7% | ||||
Adaptive Biotechnologies Corp. (a) | 419,614 | $ 2,056,109 | ||
BioAtla, Inc. (a) | 105,598 | 259,771 | ||
Immunocore Holdings PLC, ADR (a) | 60,076 | 4,104,392 | ||
Lyell Immunopharma, Inc. (a) | 210,617 | 408,597 | ||
MaxCyte, Inc. (a) | 491,000 | 2,307,700 | ||
Oxford Nanopore Technologies PLC (a) | 663,620 | 1,761,129 | ||
Prelude Therapeutics, Inc. (a) | 101,925 | 435,220 | ||
Sana Biotechnology, Inc. (a) | 162,437 | 662,743 | ||
$11,995,661 | ||||
Brokerage & Asset Managers – 2.6% | ||||
GCM Grosvenor, Inc., “A” | 637,985 | $ 5,716,346 | ||
Hamilton Lane, Inc., “A” | 57,675 | 6,542,652 | ||
WisdomTree Investments, Inc. | 947,296 | 6,564,761 | ||
$18,823,759 | ||||
Business Services – 6.7% | ||||
ExlService Holdings, Inc. (a) | 382,206 | $ 11,791,055 | ||
Keywords Studios PLC | 328,382 | 6,956,669 | ||
Remitly Global, Inc. (a) | 432,054 | 8,390,489 | ||
Thoughtworks Holding, Inc. (a) | 1,031,905 | 4,963,463 | ||
TriNet Group, Inc. (a) | 41,858 | 4,978,172 | ||
WNS (Holdings) Ltd., ADR (a) | 169,667 | 10,722,955 | ||
$47,802,803 | ||||
Chemicals – 0.7% | ||||
Element Solutions, Inc. | 207,186 | $ 4,794,284 | ||
Computer Software – 9.4% | ||||
Alkami Technology, Inc. (a) | 304,614 | $ 7,386,889 | ||
AvidXchange Holdings, Inc. (a) | 343,722 | 4,258,716 | ||
Definitive Healthcare Corp. (a) | 669,062 | 6,650,476 | ||
DoubleVerify Holdings, Inc. (a) | 354,538 | 13,039,908 | ||
Kinaxis, Inc. (a) | 58,751 | 6,593,609 | ||
Pagerduty, Inc. (a) | 410,908 | 9,512,520 | ||
Paylocity Holding Corp. (a) | 17,656 | 2,910,592 | ||
Procore Technologies, Inc. (a) | 125,443 | 8,683,164 | ||
Sabre Corp. (a) | 1,018,661 | 4,482,108 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Computer Software – continued | ||||
Zeta Global Holdings Corp. (a) | 410,513 | $ 3,620,725 | ||
$67,138,707 | ||||
Computer Software - Systems – 4.9% | ||||
Five9, Inc. (a) | 153,835 | $ 12,105,276 | ||
Guidewire Software, Inc. (a) | 58,623 | 6,392,252 | ||
Q2 Holdings, Inc. (a) | 220,569 | 9,574,900 | ||
Rapid7, Inc. (a) | 126,950 | 7,248,845 | ||
$35,321,273 | ||||
Construction – 3.0% | ||||
AZEK Co., Inc. (a) | 178,812 | $ 6,839,559 | ||
Summit Materials, Inc., “A” (a) | 381,504 | 14,672,644 | ||
$21,512,203 | ||||
Consumer Products – 0.9% | ||||
e.l.f. Beauty, Inc. (a) | 30,920 | $ 4,462,993 | ||
ODDITY Tech Ltd. (a) | 36,852 | 1,714,723 | ||
$6,177,716 | ||||
Consumer Services – 1.8% | ||||
Boyd Group Services, Inc. | 33,647 | $ 7,071,697 | ||
European Wax Center, Inc., “A” (a) | 424,147 | 5,764,158 | ||
$12,835,855 | ||||
Electrical Equipment – 4.6% | ||||
Littlefuse, Inc. | 27,262 | $ 7,294,221 | ||
nVent Electric PLC | 205,565 | 12,146,836 | ||
Sensata Technologies Holding PLC | 359,173 | 13,494,129 | ||
$32,935,186 | ||||
Electronics – 5.5% | ||||
Advanced Energy Industries, Inc. | 98,091 | $ 10,684,072 | ||
Allegro MicroSystems, Inc. (a) | 208,762 | 6,319,226 | ||
Formfactor, Inc. (a) | 187,499 | 7,820,583 | ||
Nova Ltd. (a) | 33,209 | 4,562,584 | ||
Onto Innovation, Inc. (a) | 66,421 | 10,155,771 | ||
$39,542,236 | ||||
Energy - Independent – 2.5% | ||||
Matador Resources Co. | 154,746 | $ 8,798,858 | ||
Permian Resources Corp. | 658,682 | 8,958,075 | ||
$17,756,933 | ||||
Energy - Renewables – 0.4% | ||||
Nextracker, Inc. “A” (a) | 58,499 | $ 2,740,678 | ||
Engineering - Construction – 4.2% | ||||
Corporacion Inmobiliaria Vesta S.A.B. de C.V., ADR | 127,589 | $ 5,055,076 | ||
Jacobs Solutions, Inc. | 96,102 | 12,474,040 | ||
TopBuild Corp. (a) | 33,143 | 12,404,099 | ||
$29,933,215 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Entertainment – 0.5% | ||||
Vivid Seats, Inc., “A” (a) | 624,053 | $ 3,944,015 | ||
Food & Beverages – 1.2% | ||||
Duckhorn Portfolio, Inc. (a) | 724,344 | $ 7,134,788 | ||
Oatly Group AB, ADR (a)(l) | 1,383,197 | 1,632,173 | ||
$8,766,961 | ||||
Gaming & Lodging – 0.9% | ||||
Genius Sports Ltd. (a) | 1,032,755 | $ 6,382,426 | ||
General Merchandise – 2.0% | ||||
Five Below, Inc. (a) | 37,707 | $ 8,037,624 | ||
Ollie's Bargain Outlet Holdings, Inc. (a) | 86,741 | 6,582,775 | ||
$14,620,399 | ||||
Leisure & Toys – 1.9% | ||||
Brunswick Corp. | 78,714 | $ 7,615,580 | ||
Corsair Gaming, Inc. (a) | 269,334 | 3,797,609 | ||
Funko, Inc., “A” (a) | 236,553 | 1,828,555 | ||
$13,241,744 | ||||
Machinery & Tools – 3.5% | ||||
Crane Co. | 102,093 | $ 12,061,267 | ||
RB Global, Inc. | 195,826 | 13,098,801 | ||
$25,160,068 | ||||
Medical & Health Technology & Services – 1.8% | ||||
Certara, Inc. (a) | 498,766 | $ 8,773,294 | ||
HealthEquity, Inc. (a) | 66,549 | 4,412,199 | ||
$13,185,493 | ||||
Medical Equipment – 10.7% | ||||
Bio-Techne Corp. | 97,282 | $ 7,506,279 | ||
Bruker BioSciences Corp. | 107,904 | 7,928,786 | ||
CryoPort, Inc. (a) | 384,643 | 5,958,120 | ||
Envista Holdings Corp. (a) | 240,663 | 5,790,352 | ||
Gerresheimer AG | 72,953 | 7,598,616 | ||
Inari Medical, Inc. (a) | 62,716 | 4,071,523 | ||
Maravai Lifesciences Holdings, Inc., “A” (a) | 208,685 | 1,366,887 | ||
Masimo Corp. (a) | 65,608 | 7,689,914 | ||
Natera, Inc. (a) | 85,631 | 5,363,926 | ||
OptiNose, Inc. (a) | 581,679 | 750,366 | ||
Outset Medical, Inc. (a) | 135,860 | 735,002 | ||
PROCEPT BioRobotics Corp. (a) | 110,295 | 4,622,463 | ||
QIAGEN N.V. (a) | 200,881 | 8,724,262 | ||
Shockwave Medical, Inc. (a) | 43,386 | 8,267,636 | ||
$76,374,132 | ||||
Oil Services – 2.3% | ||||
Cactus, Inc., “A” | 92,750 | $ 4,210,850 | ||
ChampionX Corp. | 99,607 | 2,909,521 | ||
TechnipFMC PLC | 468,052 | 9,426,567 | ||
$16,546,938 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Pharmaceuticals – 4.4% | ||||
Amicus Therapeutics, Inc. (a) | 442,083 | $ 6,273,158 | ||
Annexon, Inc. (a) | 157,851 | 716,644 | ||
Ascendis Pharma, ADR (a) | 20,031 | 2,522,904 | ||
Collegium Pharmaceutical, Inc. (a) | 128,893 | 3,967,326 | ||
Harmony Biosciences Holdings (a) | 97,099 | 3,136,298 | ||
Kymera Therapeutics, Inc. (a) | 81,476 | 2,074,379 | ||
Legend Biotech Corp., ADR (a) | 49,816 | 2,997,429 | ||
Neurocrine Biosciences, Inc. (a) | 32,117 | 4,231,736 | ||
SpringWorks Therapeutics, Inc. (a) | 89,957 | 3,283,430 | ||
Viking Therapeutics, Inc. (a) | 128,472 | 2,390,864 | ||
$31,594,168 | ||||
Pollution Control – 2.1% | ||||
GFL Environmental, Inc. | 437,893 | $ 15,111,687 | ||
Real Estate – 1.6% | ||||
STAG Industrial, Inc., REIT | 285,881 | $ 11,223,688 | ||
Restaurants – 1.5% | ||||
U.S. Foods Holding Corp. (a) | 231,781 | $ 10,525,175 | ||
Specialty Chemicals – 2.5% | ||||
Ashland, Inc. | 57,384 | $ 4,838,045 | ||
Axalta Coating Systems Ltd. (a) | 183,377 | 6,229,317 | ||
Chemours Co. | 205,438 | 6,479,514 | ||
$17,546,876 | ||||
Specialty Stores – 1.8% | ||||
ACV Auctions, Inc. (a) | 327,966 | $ 4,968,685 | ||
Chewy, Inc., “A” (a) | 345,088 | 8,154,429 | ||
$13,123,114 | ||||
Trucking – 2.0% | ||||
Knight-Swift Transportation Holdings, Inc. | 157,632 | $ 9,087,485 | ||
XPO Logistics, Inc. (a) | 63,121 | 5,528,768 | ||
$14,616,253 | ||||
Total Common Stocks (Identified Cost, $614,938,296) | $688,795,951 |
Strike Price | First Exercise | |||
Warrants – 0.0% | ||||
Medical Equipment – 0.0% | ||||
OptiNose, Inc. (1 share for 1 warrant, Expiration 11/23/27) (a) (Identified Cost, $1,867) | $ 2.57 | 11/23/22 | 186,662 | $ 0 |
Issuer | Shares/Par | Value ($) | ||
Investment Companies (h) – 3.7% | ||||
Money Market Funds – 3.7% | ||||
MFS Institutional Money Market Portfolio, 5.42% (v) (Identified Cost, $26,801,172) | 26,802,330 | $ 26,807,690 | ||
Collateral for Securities Loaned – 0.3% | ||||
State Street Navigator Securities Lending Government Money Market Portfolio, 5.36% (j) (Identified Cost, $1,858,865) | 1,858,865 | $ 1,858,865 | ||
Other Assets, Less Liabilities – (0.3)% | (2,273,086) | |||
Net Assets – 100.0% | $715,189,420 |
(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 $26,807,690 and $690,654,816, 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. | |||
(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 |
Financial Statements | Statement of Assets and Liabilities |
At 12/31/23Assets | |
Investments in unaffiliated issuers, at value, including $1,468,955 of securities on loan (identified cost, $616,799,028) | $690,654,816 |
Investments in affiliated issuers, at value (identified cost, $26,801,172) | 26,807,690 |
Receivables for | |
Fund shares sold | 694,816 |
Interest and dividends | 320,940 |
Other assets | 2,608 |
Total assets | $718,480,870 |
Liabilities | |
Payables for | |
Fund shares reacquired | $1,240,036 |
Collateral for securities loaned, at value (c) | 1,858,865 |
Payable to affiliates | |
Investment adviser | 33,536 |
Administrative services fee | 1,081 |
Shareholder servicing costs | 468 |
Distribution and/or service fees | 11,259 |
Payable for independent Trustees' compensation | 15 |
Accrued expenses and other liabilities | 146,190 |
Total liabilities | $3,291,450 |
Net assets | $715,189,420 |
Net assets consist of | |
Paid-in capital | $798,760,117 |
Total distributable earnings (loss) | (83,570,697) |
Net assets | $715,189,420 |
Shares of beneficial interest outstanding | 64,113,324 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $308,483,565 | 23,833,477 | $12.94 |
Service Class | 406,705,855 | 40,279,847 | 10.10 |
(c) | Non-cash collateral is not included. |
Financial Statements | Statement of Operations |
Year ended 12/31/23 | |
Net investment income (loss) | |
Income | |
Dividends | $3,259,869 |
Dividends from affiliated issuers | 1,628,942 |
Income on securities loaned | 122,964 |
Other | 62,895 |
Foreign taxes withheld | (87,423) |
Total investment income | $4,987,247 |
Expenses | |
Management fee | $6,144,508 |
Distribution and/or service fees | 971,092 |
Shareholder servicing costs | 10,786 |
Administrative services fee | 108,730 |
Independent Trustees' compensation | 13,445 |
Custodian fee | 50,879 |
Shareholder communications | 11,280 |
Audit and tax fees | 70,180 |
Legal fees | 3,760 |
Miscellaneous | 30,594 |
Total expenses | $7,415,254 |
Reduction of expenses by investment adviser | (495,888) |
Net expenses | $6,919,366 |
Net investment income (loss) | $(1,932,119) |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $(56,640,289) |
Affiliated issuers | 7,529 |
Foreign currency | (403) |
Net realized gain (loss) | $(56,633,163) |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $151,093,063 |
Affiliated issuers | (3,550) |
Translation of assets and liabilities in foreign currencies | 5,459 |
Net unrealized gain (loss) | $151,094,972 |
Net realized and unrealized gain (loss) | $94,461,809 |
Change in net assets from operations | $92,529,690 |
Financial Statements | Statements of Changes in Net Assets |
Year ended | ||
12/31/23 | 12/31/22 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $(1,932,119) | $(2,757,964) |
Net realized gain (loss) | (56,633,163) | (88,725,335) |
Net unrealized gain (loss) | 151,094,972 | (207,358,071) |
Change in net assets from operations | $92,529,690 | $(298,841,370) |
Total distributions to shareholders | $— | $(245,542,542) |
Change in net assets from fund share transactions | $(38,689,026) | $200,448,615 |
Total change in net assets | $53,840,664 | $(343,935,297) |
Net assets | ||
At beginning of period | 661,348,756 | 1,005,284,053 |
At end of period | $715,189,420 | $661,348,756 |
Financial Statements | Financial Highlights |
Initial Class | Year ended | ||||
12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | |
Net asset value, beginning of period | $11.31 | $23.30 | $26.96 | $20.28 | $17.46 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $(0.02) | $(0.04) | $(0.11) | $(0.06) | $(0.07) |
Net realized and unrealized gain (loss) | 1.65 | (6.56) | 0.92 | 8.84 | 6.89 |
Total from investment operations | $1.63 | $(6.60) | $0.81 | $8.78 | $6.82 |
Less distributions declared to shareholders | |||||
From net realized gain | $— | $(5.39) | $(4.47) | $(2.10) | $(4.00) |
Net asset value, end of period (x) | $12.94 | $11.31 | $23.30 | $26.96 | $20.28 |
Total return (%) (k)(r)(s)(x) | 14.41 | (29.76) | 1.80 | 45.89 | 41.70 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.94 | 0.95 | 0.94 | 0.95 | 0.95 |
Expenses after expense reductions | 0.87 | 0.87 | 0.87 | 0.91 | 0.94 |
Net investment income (loss) | (0.14) | (0.23) | (0.42) | (0.30) | (0.33) |
Portfolio turnover | 61 | 48 | 79 | 80 | 54 |
Net assets at end of period (000 omitted) | $308,484 | $286,747 | $433,168 | $465,663 | $343,133 |
Service Class | Year ended | ||||
12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | |
Net asset value, beginning of period | $8.84 | $19.84 | $23.61 | $18.02 | $15.91 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $(0.04) | $(0.06) | $(0.16) | $(0.10) | $(0.11) |
Net realized and unrealized gain (loss) | 1.30 | (5.55) | 0.86 | 7.79 | 6.22 |
Total from investment operations | $1.26 | $(5.61) | $0.70 | $7.69 | $6.11 |
Less distributions declared to shareholders | |||||
From net realized gain | $— | $(5.39) | $(4.47) | $(2.10) | $(4.00) |
Net asset value, end of period (x) | $10.10 | $8.84 | $19.84 | $23.61 | $18.02 |
Total return (%) (k)(r)(s)(x) | 14.25 | (29.99) | 1.57 | 45.58 | 41.27 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 1.19 | 1.20 | 1.19 | 1.20 | 1.20 |
Expenses after expense reductions | 1.12 | 1.12 | 1.12 | 1.16 | 1.19 |
Net investment income (loss) | (0.39) | (0.48) | (0.66) | (0.56) | (0.58) |
Portfolio turnover | 61 | 48 | 79 | 80 | 54 |
Net assets at end of period (000 omitted) | $406,706 | $374,602 | $572,116 | $584,928 | $472,393 |
(d) | Per share data is based on average shares outstanding. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(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 |
Equity Securities: | ||||
United States | $581,319,570 | $0 | $— | $581,319,570 |
Canada | 41,875,794 | — | — | 41,875,794 |
United Kingdom | 19,204,616 | — | — | 19,204,616 |
Germany | 16,322,878 | — | — | 16,322,878 |
India | 10,722,955 | — | — | 10,722,955 |
Israel | 6,277,307 | — | — | 6,277,307 |
Mexico | 5,055,076 | — | — | 5,055,076 |
China | 2,997,429 | — | — | 2,997,429 |
Denmark | 2,522,904 | — | — | 2,522,904 |
Other Countries | 2,497,422 | — | — | 2,497,422 |
Mutual Funds | 28,666,555 | — | — | 28,666,555 |
Total | $717,462,506 | $0 | $— | $717,462,506 |
Year ended 12/31/23 | Year ended 12/31/22 | |
Ordinary income (including any short-term capital gains) | $— | $79,285,102 |
Long-term capital gains | — | 166,257,440 |
Total distributions | $— | $245,542,542 |
As of 12/31/23 | |
Cost of investments | $658,274,228 |
Gross appreciation | 149,173,556 |
Gross depreciation | (89,985,278) |
Net unrealized appreciation (depreciation) | $59,188,278 |
Capital loss carryforwards | (142,756,856) |
Other temporary differences | (2,119) |
Total distributable earnings (loss) | $(83,570,697) |
Short-Term | $(54,227,495) |
Long-Term | (88,529,361) |
Total | $(142,756,856) |
Year ended 12/31/23 | Year ended 12/31/22 | ||
Initial Class | $— | $97,259,181 | |
Service Class | — | 148,283,361 | |
Total | $— | $245,542,542 |
Up to $1 billion | 0.90% |
In excess of $1 billion | 0.80% |
Year ended 12/31/23 | Year ended 12/31/22 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 2,137,934 | $25,862,792 | 2,032,873 | $34,222,306 | |
Service Class | 3,454,011 | 32,281,580 | 11,519,641 | 168,576,091 | |
5,591,945 | $58,144,372 | 13,552,514 | $202,798,397 |
Year ended 12/31/23 | Year ended 12/31/22 | ||||
Shares | Amount | Shares | Amount | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 8,064,609 | $97,259,181 | |
Service Class | — | — | 15,707,983 | 148,283,361 | |
— | $— | 23,772,592 | $245,542,542 | ||
Shares reacquired | |||||
Initial Class | (3,664,075) | $(44,513,823) | (3,327,692) | $(53,400,187) | |
Service Class | (5,536,298) | (52,319,575) | (13,705,736) | (194,492,137) | |
(9,200,373) | $(96,833,398) | (17,033,428) | $(247,892,324) | ||
Net change | |||||
Initial Class | (1,526,141) | $(18,651,031) | 6,769,790 | $78,081,300 | |
Service Class | (2,082,287) | (20,037,995) | 13,521,888 | 122,367,315 | |
(3,608,428) | $(38,689,026) | 20,291,678 | $200,448,615 |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $29,980,397 | $165,079,028 | $168,255,714 | $7,529 | $(3,550) | $26,807,690 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $1,628,942 | $— |
February 14, 2024
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 TRUSTEE | ||||||||||
Michael W. Roberge (k) (age 57) | 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) | N/A | |||||
INDEPENDENT TRUSTEES | ||||||||||
John P. Kavanaugh (age 69) | Trustee and Chair of Trustees | January 2009 | 136 | Private investor | N/A | |||||
Steven E. Buller (age 72) | Trustee | February 2014 | 136 | Private investor | N/A | |||||
John A. Caroselli (age 69) | Trustee | March 2017 | 136 | Private investor; JC Global Advisors, LLC (management consulting), President (since 2015) | N/A | |||||
Maureen R. Goldfarb (age 68) | Trustee | January 2009 | 136 | Private investor | N/A | |||||
Peter D. Jones (age 68) | Trustee | January 2019 | 136 | Private investor | N/A | |||||
James W. Kilman, Jr. (age 62) | 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) | |||||
Clarence Otis, Jr. (age 67) | Trustee | March 2017 | 136 | Private investor | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director | |||||
Maryanne L. Roepke (age 67) | Trustee | May 2014 | 136 | Private investor | N/A | |||||
Laurie J. Thomsen (age 66) | 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 50) | Assistant Secretary and Assistant Clerk | July 2005 | 136 | Massachusetts Financial Services Company, Senior Vice President and Senior Managing Counsel | ||||
Kino Clark (k) (age 55) | Assistant Treasurer | January 2012 | 136 | Massachusetts Financial Services Company, Vice President |
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 | ||||
John W. Clark, Jr. (k) (age 56) | Assistant Treasurer | April 2017 | 136 | Massachusetts Financial Services Company, Vice President | ||||
David L. DiLorenzo (k) (age 55) | President | July 2005 | 136 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 56) | Secretary and Clerk | April 2017 | 136 | Massachusetts Financial Services Company, Executive Vice President and General Counsel | ||||
Brian E. Langenfeld (k) (age 50) | Assistant Secretary and Assistant Clerk | June 2006 | 136 | Massachusetts Financial Services Company, Vice President and Managing Counsel | ||||
Rosa E. Licea-Mailloux (k) (age 47) | 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) | ||||
Amanda S. Mooradian (k) (age 44) | Assistant Secretary and Assistant Clerk | September 2018 | 136 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 53) | Assistant Secretary and Assistant Clerk | July 2005 | 136 | Massachusetts Financial Services Company, Vice President and Managing Counsel | ||||
Kasey L. Phillips (k) (age 53) | Assistant Treasurer | September 2012 | 136 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 49) | Assistant Secretary and Assistant Clerk | October 2014 | 136 | Massachusetts Financial Services Company, Vice President and Senior Managing Counsel | ||||
William B. Wilson (k) (age 41) | Assistant Secretary and Assistant Clerk | October 2022 | 136 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
James O. Yost (k) (age 63) | 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 Congress Street, Suite 1 Boston, MA 02114-2016 |
Distributor | Independent Registered Public Accounting Firm |
MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618 | Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 |
Portfolio Manager(s) | |
Michael Grossman |
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. |
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Microsoft Corp. | 9.0% |
Alphabet, Inc., “A” | 4.1% |
Amazon.com, Inc. | 3.9% |
Apple, Inc. | 3.7% |
Visa, Inc., “A” | 2.7% |
Meta Platforms, Inc., “A” | 2.4% |
JPMorgan Chase & Co. | 2.1% |
Salesforce, Inc. | 1.9% |
Accenture PLC, “A” | 1.6% |
ConocoPhillips | 1.6% |
Technology | 35.2% |
Financial Services | 13.3% |
Health Care | 13.2% |
Capital Goods | 12.7% |
Consumer Cyclicals | 11.5% |
Energy | 6.6% |
Consumer Staples | 4.5% |
Telecommunications/Cable Television (s) | 2.2% |
(k) | The sectors set forth above and the associated portfolio composition are based on MFS’ own custom sector classification methodology. |
(o) | Less than 0.1%. |
(s) | Includes securities sold short. |
(b) | Security is not a benchmark constituent. |
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr |
Initial Class | 7/26/1995 | 22.42% | 14.41% | 10.82% |
Service Class | 5/01/2000 | 22.12% | 14.13% | 10.55% |
Standard & Poor's 500 Stock Index (f) | 26.29% | 15.69% | 12.03% |
(f) | Source: FactSet Research Systems Inc. |
(g) | “Standard & Poor's®” and “S&P®” are registered trademarks of Standard & Poor's Financial Services LLC (“S&P”) and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and sublicensed for certain purposes by MFS. The S&P 500® is a product of S&P Dow Jones Indices LLC, and has been licensed for use by MFS. MFS's product(s) is not sponsored, endorsed, sold, or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates, and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing in such product(s). |
July 1, 2023 through December 31, 2023
Share Class | Annualized Expense Ratio | Beginning Account Value 7/01/23 | Ending Account Value 12/31/23 | Expenses Paid During Period (p) 7/01/23-12/31/23 | |
Initial Class | Actual | 0.80% | $1,000.00 | $1,083.56 | $4.20 |
Hypothetical (h) | 0.80% | $1,000.00 | $1,021.17 | $4.08 | |
Service Class | Actual | 1.05% | $1,000.00 | $1,082.34 | $5.51 |
Hypothetical (h) | 1.05% | $1,000.00 | $1,019.91 | $5.35 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 99.3% | ||||
Aerospace & Defense – 3.4% | ||||
Boeing Co. (a) | 24,248 | $ 6,320,484 | ||
General Dynamics Corp. | 16,603 | 4,311,301 | ||
Honeywell International, Inc. | 37,171 | 7,795,130 | ||
Howmet Aerospace, Inc. | 67,937 | 3,676,751 | ||
Leidos Holdings, Inc. | 29,551 | 3,198,600 | ||
$25,302,266 | ||||
Alcoholic Beverages – 0.5% | ||||
Constellation Brands, Inc., “A” | 15,748 | $ 3,807,079 | ||
Apparel Manufacturers – 0.7% | ||||
NIKE, Inc., “B” | 49,987 | $ 5,427,089 | ||
Automotive – 0.3% | ||||
Aptiv PLC (a) | 22,977 | $ 2,061,496 | ||
Broadcasting – 1.1% | ||||
Walt Disney Co. | 87,017 | $ 7,856,765 | ||
Brokerage & Asset Managers – 1.9% | ||||
Charles Schwab Corp. | 112,609 | $ 7,747,499 | ||
CME Group, Inc. | 31,131 | 6,556,189 | ||
$14,303,688 | ||||
Business Services – 2.6% | ||||
Accenture PLC, “A” | 34,202 | $ 12,001,824 | ||
TransUnion | 60,776 | 4,175,919 | ||
Tyler Technologies, Inc. (a) | 6,552 | 2,739,522 | ||
$18,917,265 | ||||
Cable TV – 0.7% | ||||
Cable One, Inc. | 9,373 | $ 5,216,918 | ||
Computer Software – 12.7% | ||||
Cadence Design Systems, Inc. (a) | 34,926 | $ 9,512,795 | ||
Microsoft Corp. (s) | 175,949 | 66,163,862 | ||
Palo Alto Networks, Inc. (a) | 12,378 | 3,650,025 | ||
Salesforce, Inc. (a) | 51,681 | 13,599,338 | ||
$92,926,020 | ||||
Computer Software - Systems – 6.0% | ||||
Apple, Inc. (s) | 140,115 | $ 26,976,341 | ||
Constellation Software, Inc. | 2,838 | 7,036,411 | ||
HubSpot, Inc. (a) | 5,921 | 3,437,377 | ||
ServiceNow, Inc. (a) | 9,741 | 6,881,919 | ||
$44,332,048 | ||||
Construction – 2.3% | ||||
AZEK Co., Inc. (a) | 89,951 | $ 3,440,626 | ||
Sherwin-Williams Co. | 18,594 | 5,799,469 | ||
Summit Materials, Inc., “A” (a) | 113,011 | 4,346,403 | ||
Vulcan Materials Co. | 14,058 | 3,191,306 | ||
$16,777,804 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Consumer Products – 1.4% | ||||
Colgate-Palmolive Co. | 64,962 | $ 5,178,121 | ||
International Flavors & Fragrances, Inc. | 27,783 | 2,249,590 | ||
Kenvue, Inc. | 136,080 | 2,929,802 | ||
$10,357,513 | ||||
Electrical Equipment – 1.1% | ||||
Johnson Controls International PLC | 74,138 | $ 4,273,314 | ||
TE Connectivity Ltd. | 25,567 | 3,592,164 | ||
$7,865,478 | ||||
Electronics – 5.5% | ||||
Applied Materials, Inc. | 49,556 | $ 8,031,541 | ||
Lam Research Corp. | 8,494 | 6,653,010 | ||
Marvell Technology, Inc. | 102,572 | 6,186,117 | ||
NVIDIA Corp. | 23,275 | 11,526,246 | ||
NXP Semiconductors N.V. | 36,101 | 8,291,678 | ||
$40,688,592 | ||||
Energy - Independent – 3.5% | ||||
ConocoPhillips | 99,321 | $ 11,528,188 | ||
Diamondback Energy, Inc. | 27,235 | 4,223,604 | ||
Hess Corp. | 45,732 | 6,592,725 | ||
Valero Energy Corp. | 27,499 | 3,574,870 | ||
$25,919,387 | ||||
Food & Beverages – 2.0% | ||||
General Mills, Inc. | 29,688 | $ 1,933,876 | ||
Mondelez International, Inc. | 79,763 | 5,777,234 | ||
PepsiCo, Inc. | 41,800 | 7,099,312 | ||
$14,810,422 | ||||
Gaming & Lodging – 0.6% | ||||
Marriott International, Inc., “A” | 18,652 | $ 4,206,213 | ||
General Merchandise – 0.8% | ||||
Dollar General Corp. | 21,660 | $ 2,944,677 | ||
Five Below, Inc. (a) | 14,214 | 3,029,856 | ||
$5,974,533 | ||||
Health Maintenance Organizations – 1.2% | ||||
Cigna Group | 29,353 | $ 8,789,756 | ||
Insurance – 2.6% | ||||
Aon PLC | 21,196 | $ 6,168,460 | ||
Chubb Ltd. | 40,494 | 9,151,644 | ||
Willis Towers Watson PLC | 16,250 | 3,919,500 | ||
$19,239,604 | ||||
Internet – 8.4% | ||||
Alphabet, Inc., “A” (a)(s) | 216,769 | $ 30,280,462 | ||
Alphabet, Inc., “C” (a) | 60,134 | 8,474,685 | ||
Gartner, Inc. (a) | 11,203 | 5,053,785 | ||
Meta Platforms, Inc., “A” (a) | 50,137 | 17,746,492 | ||
$61,555,424 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Leisure & Toys – 0.7% | ||||
Electronic Arts, Inc. | 35,487 | $ 4,854,976 | ||
Machinery & Tools – 2.6% | ||||
Eaton Corp. PLC | 21,371 | $ 5,146,564 | ||
Ingersoll Rand, Inc. | 65,039 | 5,030,116 | ||
Regal Rexnord Corp. | 24,323 | 3,600,291 | ||
Wabtec Corp. | 39,887 | 5,061,660 | ||
$18,838,631 | ||||
Major Banks – 4.1% | ||||
JPMorgan Chase & Co. (s) | 88,907 | $ 15,123,081 | ||
Morgan Stanley | 73,915 | 6,892,574 | ||
PNC Financial Services Group, Inc. | 49,972 | 7,738,164 | ||
$29,753,819 | ||||
Medical & Health Technology & Services – 1.3% | ||||
ICON PLC (a) | 14,126 | $ 3,998,647 | ||
McKesson Corp. | 12,589 | 5,828,455 | ||
$9,827,102 | ||||
Medical Equipment – 4.8% | ||||
Agilent Technologies, Inc. | 53,008 | $ 7,369,702 | ||
Becton, Dickinson and Co. | 21,029 | 5,127,501 | ||
Boston Scientific Corp. (a) | 126,043 | 7,286,546 | ||
Envista Holdings Corp. (a) | 84,060 | 2,022,484 | ||
Masimo Corp. (a) | 10,074 | 1,180,773 | ||
Medtronic PLC | 87,757 | 7,229,422 | ||
STERIS PLC | 23,781 | 5,228,253 | ||
$35,444,681 | ||||
Oil Services – 0.5% | ||||
Schlumberger Ltd. | 68,051 | $ 3,541,374 | ||
Other Banks & Diversified Financials – 3.8% | ||||
Moody's Corp. | 10,485 | $ 4,095,022 | ||
Northern Trust Corp. | 49,233 | 4,154,280 | ||
Visa, Inc., “A” | 75,054 | 19,540,309 | ||
$27,789,611 | ||||
Pharmaceuticals – 5.8% | ||||
AbbVie, Inc. | 48,005 | $ 7,439,335 | ||
Eli Lilly & Co. | 17,033 | 9,928,876 | ||
Johnson & Johnson | 58,727 | 9,204,870 | ||
Pfizer, Inc. | 182,885 | 5,265,259 | ||
Vertex Pharmaceuticals, Inc. (a) | 15,017 | 6,110,267 | ||
Zoetis, Inc. | 23,088 | 4,556,879 | ||
$42,505,486 | ||||
Railroad & Shipping – 0.8% | ||||
Canadian Pacific Kansas City Ltd. | 72,918 | $ 5,764,897 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Real Estate – 0.9% | ||||
Extra Space Storage, Inc., REIT | 26,131 | $ 4,189,583 | ||
Jones Lang LaSalle, Inc. (a) | 12,737 | 2,405,637 | ||
$6,595,220 | ||||
Restaurants – 1.0% | ||||
Starbucks Corp. | 55,425 | $ 5,321,354 | ||
Wendy's Co. | 120,891 | 2,354,957 | ||
$7,676,311 | ||||
Specialty Chemicals – 1.7% | ||||
Air Products & Chemicals, Inc. | 17,648 | $ 4,832,023 | ||
Corteva, Inc. | 45,951 | 2,201,972 | ||
DuPont de Nemours, Inc. | 74,897 | 5,761,826 | ||
$12,795,821 | ||||
Specialty Stores – 6.6% | ||||
Amazon.com, Inc. (a)(s) | 190,042 | $ 28,874,981 | ||
Home Depot, Inc. | 28,419 | 9,848,604 | ||
Ross Stores, Inc. | 38,699 | 5,355,555 | ||
Target Corp. | 28,933 | 4,120,638 | ||
$48,199,778 | ||||
Telecommunications - Wireless – 1.7% | ||||
SBA Communications Corp., REIT | 40,928 | $ 10,383,025 | ||
T-Mobile USA, Inc. | 11,219 | 1,798,742 | ||
$12,181,767 | ||||
Tobacco – 0.6% | ||||
Philip Morris International, Inc. | 44,998 | $ 4,233,412 | ||
Trucking – 0.5% | ||||
J.B. Hunt Transport Services, Inc. | 20,226 | $ 4,039,941 | ||
Utilities - Electric Power – 2.6% | ||||
Alliant Energy Corp. | 74,628 | $ 3,828,416 | ||
CMS Energy Corp. | 32,463 | 1,885,126 | ||
Duke Energy Corp. | 48,995 | 4,754,475 | ||
PG&E Corp. | 284,648 | 5,132,204 | ||
PPL Corp. | 124,478 | 3,373,354 | ||
$18,973,575 | ||||
Total Common Stocks (Identified Cost, $434,086,571) | $729,351,762 |
Strike Price | First Exercise | |||
Warrants – 0.0% | ||||
Computer Software - Systems – 0.0% | ||||
Constellation Software, Inc. (CAD 100 principal amount of Series 2 Debentures for 1 warrant, Expiration 3/31/40) (a) (Identified Cost, $0) | CAD 11.5 | N/A | 2,981 | $ 0 |
Issuer | Shares/Par | Value ($) | ||
Investment Companies (h) – 0.7% | ||||
Money Market Funds – 0.7% | ||||
MFS Institutional Money Market Portfolio, 5.42% (v) (Identified Cost, $5,173,133) | 5,172,747 | $ 5,173,782 | ||
Securities Sold Short – (0.1)% | ||||
Telecommunications - Wireless – (0.1)% | ||||
Crown Castle, Inc., REIT (Proceeds Received, $1,381,346) | (7,925) | $ (912,881) | ||
Other Assets, Less Liabilities – 0.1% | 504,714 | |||
Net Assets – 100.0% | $734,117,377 |
(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 $5,173,782 and $729,351,762, respectively. | |||
(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: | |
REIT | Real Estate Investment Trust |
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: | |
CAD | Canadian Dollar |
Financial Statements | Statement of Assets and Liabilities |
At 12/31/23Assets | |
Investments in unaffiliated issuers, at value (identified cost, $434,086,571) | $729,351,762 |
Investments in affiliated issuers, at value (identified cost, $5,173,133) | 5,173,782 |
Deposits with brokers for | |
Securities sold short | 4,269 |
Receivables for | |
Fund shares sold | 172,433 |
Dividends | 724,117 |
Other assets | 278,781 |
Total assets | $735,705,144 |
Liabilities | |
Payable to custodian | $13,000 |
Payables for | |
Securities sold short, at value (proceeds received, $1,381,346) | 912,881 |
Fund shares reacquired | 491,332 |
Payable to affiliates | |
Investment adviser | 49,762 |
Administrative services fee | 1,097 |
Shareholder servicing costs | 263 |
Distribution and/or service fees | 8,518 |
Payable for independent Trustees' compensation | 12 |
Accrued expenses and other liabilities | 110,902 |
Total liabilities | $1,587,767 |
Net assets | $734,117,377 |
Net assets consist of | |
Paid-in capital | $392,966,751 |
Total distributable earnings (loss) | 341,150,626 |
Net assets | $734,117,377 |
Shares of beneficial interest outstanding | 23,160,750 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $423,942,291 | 13,258,665 | $31.97 |
Service Class | 310,175,086 | 9,902,085 | 31.32 |
Financial Statements | Statement of Operations |
Year ended 12/31/23 | |
Net investment income (loss) | |
Income | |
Dividends | $9,897,575 |
Dividends from affiliated issuers | 307,486 |
Other | 36,910 |
Income on securities loaned | 15,839 |
Foreign taxes withheld | (53,273) |
Total investment income | $10,204,537 |
Expenses | |
Management fee | $5,308,731 |
Distribution and/or service fees | 746,391 |
Shareholder servicing costs | 7,156 |
Administrative services fee | 112,340 |
Independent Trustees' compensation | 13,762 |
Custodian fee | 43,967 |
Shareholder communications | 20,510 |
Audit and tax fees | 71,967 |
Legal fees | 3,935 |
Dividend and interest expense on securities sold short | 170,224 |
Interest expense and fees | 3,824 |
Miscellaneous | 27,744 |
Total expenses | $6,530,551 |
Reduction of expenses by investment adviser | (155,394) |
Net expenses | $6,375,157 |
Net investment income (loss) | $3,829,380 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $44,118,369 |
Affiliated issuers | 175 |
Securities sold short | (155,584) |
Foreign currency | 214 |
Net realized gain (loss) | $43,963,174 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $94,412,061 |
Affiliated issuers | (1,244) |
Securities sold short | 729,183 |
Translation of assets and liabilities in foreign currencies | (64) |
Net unrealized gain (loss) | $95,139,936 |
Net realized and unrealized gain (loss) | $139,103,110 |
Change in net assets from operations | $142,932,490 |
Financial Statements | Statements of Changes in Net Assets |
Year ended | ||
12/31/23 | 12/31/22 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $3,829,380 | $3,931,589 |
Net realized gain (loss) | 43,963,174 | 35,481,317 |
Net unrealized gain (loss) | 95,139,936 | (176,047,562) |
Change in net assets from operations | $142,932,490 | $(136,634,656) |
Total distributions to shareholders | $(40,656,283) | $(99,101,437) |
Change in net assets from fund share transactions | $(63,758,641) | $149,469,874 |
Total change in net assets | $38,517,566 | $(86,266,219) |
Net assets | ||
At beginning of period | 695,599,811 | 781,866,030 |
At end of period | $734,117,377 | $695,599,811 |
Financial Statements | Financial Highlights |
Initial Class | Year ended | ||||
12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | |
Net asset value, beginning of period | $27.74 | $38.59 | $32.87 | $29.49 | $24.93 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.19 | $0.21 | $0.13 | $0.18 | $0.23 |
Net realized and unrealized gain (loss) | 5.86 | (6.62) | 7.92 | 4.62 | 7.66 |
Total from investment operations | $6.05 | $(6.41) | $8.05 | $4.80 | $7.89 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.16) | $(0.16) | $(0.20) | $(0.22) | $(0.24) |
From net realized gain | (1.66) | (4.28) | (2.13) | (1.20) | (3.09) |
Total distributions declared to shareholders | $(1.82) | $(4.44) | $(2.33) | $(1.42) | $(3.33) |
Net asset value, end of period (x) | $31.97 | $27.74 | $38.59 | $32.87 | $29.49 |
Total return (%) (k)(r)(s)(x) | 22.42 | (17.21) | 24.80 | 16.59 | 32.95 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.82 | 0.82 | 0.80 | 0.82 | 0.83 |
Expenses after expense reductions | 0.79 | 0.79 | 0.78 | 0.79 | 0.81 |
Net investment income (loss) | 0.64 | 0.68 | 0.35 | 0.62 | 0.82 |
Portfolio turnover | 22 | 24 | 19 | 39 | 35 |
Net assets at end of period (000 omitted) | $423,942 | $405,178 | $384,928 | $372,405 | $361,842 |
Supplemental Ratios (%): | |||||
Ratios of expenses to average net assets after expense reductions excluding short sale expenses and interest expense and fees | 0.77 | 0.77 | 0.77 | 0.77 | 0.78 |
Service Class | Year ended | ||||
12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | |
Net asset value, beginning of period | $27.20 | $37.92 | $32.34 | $29.05 | $24.61 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.12 | $0.12 | $0.04 | $0.11 | $0.16 |
Net realized and unrealized gain (loss) | 5.73 | (6.50) | 7.79 | 4.54 | 7.55 |
Total from investment operations | $5.85 | $(6.38) | $7.83 | $4.65 | $7.71 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.07) | $(0.06) | $(0.12) | $(0.16) | $(0.18) |
From net realized gain | (1.66) | (4.28) | (2.13) | (1.20) | (3.09) |
Total distributions declared to shareholders | $(1.73) | $(4.34) | $(2.25) | $(1.36) | $(3.27) |
Net asset value, end of period (x) | $31.32 | $27.20 | $37.92 | $32.34 | $29.05 |
Total return (%) (k)(r)(s)(x) | 22.12 | (17.43) | 24.51 | 16.31 | 32.60 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 1.07 | 1.07 | 1.05 | 1.07 | 1.08 |
Expenses after expense reductions | 1.04 | 1.04 | 1.03 | 1.04 | 1.06 |
Net investment income (loss) | 0.40 | 0.39 | 0.10 | 0.37 | 0.57 |
Portfolio turnover | 22 | 24 | 19 | 39 | 35 |
Net assets at end of period (000 omitted) | $310,175 | $290,421 | $396,938 | $375,322 | $319,842 |
Supplemental Ratios (%): | |||||
Ratios of expenses to average net assets after expense reductions excluding short sale expenses and interest expense and fees | 1.02 | 1.02 | 1.02 | 1.02 | 1.03 |
(d) | Per share data is based on average shares outstanding. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(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 |
Equity Securities: | ||||
United States | $716,550,454 | $— | $— | $716,550,454 |
Canada | 12,801,308 | 0 | — | 12,801,308 |
Mutual Funds | 5,173,782 | — | — | 5,173,782 |
Total | $734,525,544 | $0 | $— | $734,525,544 |
Securities Sold Short | $(912,881) | $— | $— | $(912,881) |
Year ended 12/31/23 | Year ended 12/31/22 | |
Ordinary income (including any short-term capital gains) | $2,769,284 | $14,039,255 |
Long-term capital gains | 37,886,999 | 85,062,182 |
Total distributions | $40,656,283 | $99,101,437 |
As of 12/31/23 | |
Cost of investments | $440,856,705 |
Gross appreciation | 305,751,897 |
Gross depreciation | (12,995,939) |
Net unrealized appreciation (depreciation) | $292,755,958 |
Undistributed ordinary income | 3,881,673 |
Undistributed long-term capital gain | 44,513,038 |
Other temporary differences | (43) |
Total distributable earnings (loss) | $341,150,626 |
Year ended 12/31/23 | Year ended 12/31/22 | ||
Initial Class | $23,516,766 | $56,469,294 | |
Service Class | 17,139,517 | 42,632,143 | |
Total | $40,656,283 | $99,101,437 |
Up to $1 billion | 0.75% |
In excess of $1 billion | 0.65% |
Year ended 12/31/23 | Year ended 12/31/22 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 885,857 | $25,881,107 | 4,166,754 | $136,162,513 | |
Service Class | 453,869 | 13,191,893 | 546,740 | 17,085,861 | |
1,339,726 | $39,073,000 | 4,713,494 | $153,248,374 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | 804,817 | $23,516,766 | 1,929,255 | $56,469,294 | |
Service Class | 598,238 | 17,139,517 | 1,483,889 | 42,632,143 | |
1,403,055 | $40,656,283 | 3,413,144 | $99,101,437 | ||
Shares reacquired | |||||
Initial Class | (3,040,890) | $(89,909,468) | (1,460,747) | $(46,824,246) | |
Service Class | (1,828,510) | (53,578,456) | (1,820,168) | (56,055,691) | |
(4,869,400) | $(143,487,924) | (3,280,915) | $(102,879,937) | ||
Net change | |||||
Initial Class | (1,350,216) | $(40,511,595) | 4,635,262 | $145,807,561 | |
Service Class | (776,403) | (23,247,046) | 210,461 | 3,662,313 | |
(2,126,619) | $(63,758,641) | 4,845,723 | $149,469,874 |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $7,722,089 | $96,686,610 | $99,233,848 | $175 | $(1,244) | $5,173,782 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $307,486 | $— |
February 14, 2024
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 TRUSTEE | ||||||||||
Michael W. Roberge (k) (age 57) | 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) | N/A | |||||
INDEPENDENT TRUSTEES | ||||||||||
John P. Kavanaugh (age 69) | Trustee and Chair of Trustees | January 2009 | 136 | Private investor | N/A | |||||
Steven E. Buller (age 72) | Trustee | February 2014 | 136 | Private investor | N/A | |||||
John A. Caroselli (age 69) | Trustee | March 2017 | 136 | Private investor; JC Global Advisors, LLC (management consulting), President (since 2015) | N/A | |||||
Maureen R. Goldfarb (age 68) | Trustee | January 2009 | 136 | Private investor | N/A | |||||
Peter D. Jones (age 68) | Trustee | January 2019 | 136 | Private investor | N/A | |||||
James W. Kilman, Jr. (age 62) | 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) | |||||
Clarence Otis, Jr. (age 67) | Trustee | March 2017 | 136 | Private investor | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director | |||||
Maryanne L. Roepke (age 67) | Trustee | May 2014 | 136 | Private investor | N/A | |||||
Laurie J. Thomsen (age 66) | 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 50) | Assistant Secretary and Assistant Clerk | July 2005 | 136 | Massachusetts Financial Services Company, Senior Vice President and Senior Managing Counsel | ||||
Kino Clark (k) (age 55) | Assistant Treasurer | January 2012 | 136 | Massachusetts Financial Services Company, Vice President |
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 | ||||
John W. Clark, Jr. (k) (age 56) | Assistant Treasurer | April 2017 | 136 | Massachusetts Financial Services Company, Vice President | ||||
David L. DiLorenzo (k) (age 55) | President | July 2005 | 136 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 56) | Secretary and Clerk | April 2017 | 136 | Massachusetts Financial Services Company, Executive Vice President and General Counsel | ||||
Brian E. Langenfeld (k) (age 50) | Assistant Secretary and Assistant Clerk | June 2006 | 136 | Massachusetts Financial Services Company, Vice President and Managing Counsel | ||||
Rosa E. Licea-Mailloux (k) (age 47) | 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) | ||||
Amanda S. Mooradian (k) (age 44) | Assistant Secretary and Assistant Clerk | September 2018 | 136 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 53) | Assistant Secretary and Assistant Clerk | July 2005 | 136 | Massachusetts Financial Services Company, Vice President and Managing Counsel | ||||
Kasey L. Phillips (k) (age 53) | Assistant Treasurer | September 2012 | 136 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 49) | Assistant Secretary and Assistant Clerk | October 2014 | 136 | Massachusetts Financial Services Company, Vice President and Senior Managing Counsel | ||||
William B. Wilson (k) (age 41) | Assistant Secretary and Assistant Clerk | October 2022 | 136 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
James O. Yost (k) (age 63) | 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 Congress Street, Suite 1 Boston, MA 02114-2016 |
Distributor | Independent Registered Public Accounting Firm |
MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618 | Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 |
Portfolio Manager(s) | |
Joseph MacDougall |
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. |
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U.S. Treasury Securities | 34.4% |
Investment Grade Corporates | 29.4% |
Mortgage-Backed Securities | 21.9% |
Commercial Mortgage-Backed Securities | 8.0% |
Collateralized Debt Obligations | 7.9% |
High Yield Corporates | 6.3% |
Municipal Bonds | 1.4% |
Asset-Backed Securities | 1.4% |
U.S. Government Agencies | 0.8% |
Emerging Markets Bonds | 0.4% |
Non-U.S. Government Bonds | 0.3% |
AAA | 8.2% |
AA | 4.4% |
A | 9.8% |
BBB | 25.3% |
BB | 5.6% |
B | 1.7% |
CCC | 0.2% |
C (o) | 0.0% |
U.S. Government | 21.0% |
Federal Agencies | 22.7% |
Not Rated | 13.3% |
Cash & Cash Equivalents | 1.1% |
Other (q) | (13.3)% |
Average Duration (d) | 6.2 |
Average Effective Maturity (m) | 7.2 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. U.S. Government includes securities issued by the U.S. Department of the Treasury. Federal Agencies includes rated and unrated U.S. Agency fixed-income securities, U.S. Agency mortgage-backed securities, |
(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 feature (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. |
(o) | Less than 0.1%. |
(q) | For purposes of this presentation, Other includes equivalent exposure from currency derivatives and/or any offsets to derivative positions and may be negative. |
(v) | For purposes of this presentation, market value of fixed income and/or equity derivatives, if any, is included in Cash & Cash Equivalents. |
(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. |
(r) | Securities rated “BBB”, “Baa”, or higher are considered investment grade; securities rated “BB”, “Ba”, or below are considered non-investment grade. Ratings are assigned to underlying securities utilizing ratings from Moody's, Fitch, and Standard & Poor's 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). For securities that are not rated by any of the rating agencies, the security is considered Not Rated. |
(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 |
Initial Class | 10/24/1995 | 7.38% | 1.85% | 2.22% |
Service Class | 5/01/2000 | 7.13% | 1.58% | 1.96% |
Bloomberg U.S. Aggregate Bond Index (f) | 5.53% | 1.10% | 1.81% |
(f) | Source: FactSet Research Systems Inc. |
(a) | Source: Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg or Bloomberg's licensors own all proprietary rights in the Bloomberg Indices. Bloomberg neither approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith. |
July 1, 2023 through December 31, 2023
Share Class | Annualized Expense Ratio | Beginning Account Value 7/01/23 | Ending Account Value 12/31/23 | Expenses Paid During Period (p) 7/01/23-12/31/23 | |
Initial Class | Actual | 0.52% | $1,000.00 | $1,042.32 | $2.68 |
Hypothetical (h) | 0.52% | $1,000.00 | $1,022.58 | $2.65 | |
Service Class | Actual | 0.77% | $1,000.00 | $1,040.20 | $3.96 |
Hypothetical (h) | 0.77% | $1,000.00 | $1,021.32 | $3.92 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Bonds – 98.0% | ||||
Aerospace & Defense – 0.9% | ||||
Boeing Co., 2.196%, 2/04/2026 | $ | 6,236,000 | $ 5,892,315 | |
Boeing Co., 5.15%, 5/01/2030 | 1,704,000 | 1,734,691 | ||
Boeing Co., 5.705%, 5/01/2040 | 1,595,000 | 1,649,125 | ||
TransDigm, Inc., 4.625%, 1/15/2029 | 5,158,000 | 4,842,717 | ||
$14,118,848 | ||||
Asset-Backed & Securitized – 17.2% | ||||
ACREC 2021-FL1 Ltd., “C”, FLR, 7.596% ((SOFR - 1mo. + 0.11448%) + 2.15%), 10/16/2036 (n) | $ | 2,546,000 | $ 2,450,936 | |
ACREC 2021-FL1 Ltd., “D”, FLR, 8.122% ((SOFR - 1mo. + 0.11448%) + 2.65%), 10/16/2036 (n) | 3,070,500 | 2,908,228 | ||
ACRES 2021-FL2 Issuer Ltd., “C”, FLR, 8.126% ((SOFR - 1mo. + 0.11448%) + 2.65%), 1/15/2037 (n) | 3,129,000 | 3,023,207 | ||
Allegro CLO Ltd., 2014-1RA, “A2”, FLR, 7.273% ((SOFR - 3mo. + 0.26161%) + 1.6%), 10/21/2028 (n) | 5,554,267 | 5,553,750 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL1, “C”, FLR, 7.448% ((SOFR - 1mo. + 0.11448%) + 2%), 12/15/2035 (n) | 905,000 | 878,969 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL1, “D”, FLR, 8.398% ((SOFR - 1mo. + 0.11448%) + 2.95%), 12/15/2035 (n) | 831,500 | 814,292 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL2, “B”, FLR, 7.048% ((SOFR - 1mo. + 0.11448%) + 1.6%), 5/15/2036 (n) | 1,152,500 | 1,121,770 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL3, “C”, FLR, 7.326% ((SOFR - 1mo. + 0.11448%) + 1.85%), 8/15/2034 (n) | 1,740,000 | 1,653,908 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL3, “D”, FLR, 7.676% ((SOFR - 1mo. + 0.11448%) + 2.2%), 8/15/2034 (n) | 964,500 | 906,591 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL4, “C”, FLR, 7.748% ((SOFR - 1mo. + 0.11448%) + 2.3%), 11/15/2036 (n) | 3,443,500 | 3,328,953 | ||
Arbor Realty Trust, Inc., CLO, 2022-FL1, “D”, FLR, 8.346% (SOFR - 30 day + 3%), 1/15/2037 (n) | 9,290,000 | 8,532,879 | ||
AREIT 2019-CRE3 Trust, “B”, FLR, 7.026% ((SOFR - 1mo. + 0.11448%) + 1.55%), 9/14/2036 (n) | 2,569,500 | 2,477,733 | ||
AREIT 2019-CRE3 Trust, “C”, FLR, 7.376% (SOFR - 1mo. + 2.014%), 9/14/2036 (n) | 2,242,500 | 2,045,797 | ||
AREIT 2019-CRE3 Trust, “D”, FLR, 8.126% ((SOFR - 1mo. + 0.11448%) + 2.65%), 9/14/2036 (n) | 1,849,000 | 1,657,066 | ||
AREIT 2022-CRE6 Trust, “B”, FLR, 7.187% (SOFR - 30 day + 1.85%), 1/20/2037 (n) | 1,126,000 | 1,091,172 | ||
AREIT 2022-CRE6 Trust, “C”, FLR, 7.488% (SOFR - 30 day + 2.15%), 1/20/2037 (n) | 2,322,000 | 2,210,869 | ||
AREIT 2022-CRE6 Trust, “D”, FLR, 8.188% (SOFR - 30 day + 2.85%), 1/20/2037 (n) | 987,000 | 928,643 | ||
ARI Fleet Lease Trust, 2023-B, “A2”, 6.05%, 7/15/2032 (n) | 883,776 | 893,594 | ||
Bayview Commercial Asset Trust, 0%, 12/25/2036 (i)(n) | 58,296 | 6 | ||
Bayview Financial Revolving Mortgage Loan Trust, FLR, 7.071% ((SOFR - 1mo. + 0.11448%) + 1.6%), 12/28/2040 (n) | 20,585 | 30,267 | ||
BBCMS Mortgage Trust, 2019-C5, “A4”, 3.063%, 11/15/2052 | 2,755,000 | 2,476,921 | ||
BDS 2021-FL7 Ltd., “B”, FLR, 6.972% ((SOFR - 1mo. + 0.11448%) + 1.5%), 6/16/2036 (n) | 1,259,500 | 1,232,713 | ||
Benchmark 2023-V3 Mortgage Trust, “A3”, 6.362%, 7/15/2056 | 991,415 | 1,038,631 | ||
Brazos Securitization LLC, 5.413%, 9/01/2050 (n) | 3,427,000 | 3,502,391 | ||
BSPDF 2021-FL1 Issuer Ltd., “B”, FLR, 7.276% ((SOFR - 1mo. + 0.11448%) + 1.8%), 10/15/2036 (n) | 4,380,500 | 4,138,946 | ||
BSPRT 2021-FL6 Issuer Ltd., “B”, FLR, 7.076% ((SOFR - 1mo. + 0.11448%) + 1.6%), 3/15/2036 (n) | 3,669,500 | 3,522,680 | ||
BSPRT 2021-FL6 Issuer Ltd., “C”, FLR, 7.526% ((SOFR - 1mo. + 0.11448%) + 2.05%), 3/15/2036 (n) | 1,288,000 | 1,231,806 | ||
BSPRT 2021-FL7 Issuer Ltd., “C”, FLR, 7.748% ((SOFR - 1mo. + 0.11448%) + 2.3%), 12/15/2038 (n) | 836,500 | 815,255 | ||
BSPRT 2021-FL7 Issuer Ltd., “D”, FLR, 8.198% ((SOFR - 1mo. + 0.11448%) + 2.75%), 12/15/2038 (n) | 952,500 | 897,060 | ||
Business Jet Securities LLC, 2020-1A, “A”, 2.981%, 11/15/2035 (n) | 438,787 | 419,300 | ||
Business Jet Securities LLC, 2021-1A, “B”, 2.918%, 4/15/2036 (n) | 349,171 | 319,083 | ||
BXMT 2020-FL2 Ltd., “B”, FLR, 6.876% ((SOFR - 1mo. + 0.11448%) + 1.4%), 2/15/2038 (n) | 1,731,000 | 1,516,747 | ||
Cantor Commercial Real Estate, 2019-CF2, “A5”, 2.874%, 11/15/2052 | 6,645,635 | 5,841,986 | ||
Capital Automotive, 2020-1A, “A4”, REIT, 3.19%, 2/15/2050 (n) | 2,378,439 | 2,276,437 | ||
CHCP 2021-FL1 Ltd., “B”, FLR, 7.102% ((SOFR - 1mo. + 0.11448%) + 1.65%), 2/15/2038 (n) | 1,102,500 | 1,084,191 | ||
CHCP 2021-FL1 Ltd., “C”, FLR, 7.572% ((SOFR - 1mo. + 0.11448%) + 2.1%), 2/15/2038 (n) | 1,249,000 | 1,211,672 | ||
Chesapeake Funding II LLC, 2023-1A, “A1”, 5.65%, 5/15/2035 (n) | 1,150,670 | 1,153,699 | ||
Citigroup Commercial Mortgage Trust, 2014-GC25, “A4”, 3.635%, 10/10/2047 | 3,128,793 | 3,068,224 | ||
Citigroup Commercial Mortgage Trust, 2016-P6, “A5”, 3.72%, 12/10/2049 | 1,754,000 | 1,652,722 | ||
CLNC 2019-FL1 Ltd., “B”, FLR, 7.37% (SOFR - 1mo. + 2.01448%), 8/20/2035 (n) | 1,850,000 | 1,784,782 | ||
CLNC 2019-FL1 Ltd., “C”, FLR, 7.87% (SOFR - 1mo. + 2.51448%), 8/20/2035 (n) | 3,006,500 | 2,922,506 | ||
Commercial Mortgage Pass-Through Certificates, 2023-BNK46, “A4”, 5.745%, 8/15/2056 | 4,656,029 | 4,895,423 | ||
Commercial Mortgage Pass-Through Certificates, 2023-BNK46, “AS”, 6.385%, 8/15/2056 | 2,699,147 | 2,800,518 | ||
Commercial Mortgage Trust, 2015-LC21, “A4”, 3.708%, 7/10/2048 | 10,000,000 | 9,699,549 | ||
Commercial Mortgage Trust, 2015-PC1, “A5”, 3.902%, 7/10/2050 | 2,888,848 | 2,807,906 | ||
Consumers 2023 Securitization Funding LLC, 5.55%, 3/01/2028 | 2,493,000 | 2,502,711 | ||
Credit Acceptance Auto Loan Trust, 2021-3A, “C”, 1.63%, 9/16/2030 (n) | 523,000 | 497,689 | ||
Credit Acceptance Auto Loan Trust, 2023-3A, “A”, 6.39%, 8/15/2033 (n) | 973,000 | 986,685 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Asset-Backed & Securitized – continued | ||||
CSAIL Commercial Mortgage Trust, 2015-C2, “A4”, 3.504%, 6/15/2057 | $ | 2,695,346 | $ 2,607,320 | |
Cutwater 2015-1A Ltd., “BR”, FLR, 7.455% ((SOFR - 3mo. + 0.26161%) + 1.8%), 1/15/2029 (n) | 10,770,000 | 10,708,643 | ||
DT Auto Owner Trust, 2023-1A, “A”, 5.48%, 4/15/2027 (n) | 1,939,385 | 1,935,762 | ||
Enterprise Fleet Financing LLC, 2023-3, “A2”, 6.4%, 3/20/2030 (n) | 2,225,000 | 2,274,224 | ||
GLGU 2023-1A Ltd., “B”, FLR, 8.362% (SOFR - 3mo. + 3%), 7/20/2035 (n) | 3,420,864 | 3,422,441 | ||
GLS Auto Select Receivables Trust, 2023-2A, 6.37%, 6/15/2028 (n) | 1,660,000 | 1,674,269 | ||
GS Mortgage Securities Trust, 2015-GC30, “A4”, 3.382%, 5/10/2050 | 7,904,407 | 7,631,639 | ||
HarbourView CLO VII Ltd., 7RA, “B”, FLR, 7.356% ((SOFR - 3mo. + 0.26161%) + 1.7%), 7/18/2031 (n) | 6,545,000 | 6,374,326 | ||
JPMBB Commercial Mortgage Securities Trust, 2015-C28, “A4”, 3.227%, 10/15/2048 | 12,188,428 | 11,743,937 | ||
JPMorgan Chase Commercial Mortgage Securities Corp., 5.707%, 7/15/2042 (n) | 964 | 839 | ||
JPMorgan Mortgage Trust, “A1”, 4.517%, 10/25/2033 | 34,603 | 31,635 | ||
KKR Static CLO I Ltd. 2022-1A, “BR”, 7.365% (SOFR - 3mo. + 2%), 7/19/2031 (n)(w) | 4,871,468 | 4,871,468 | ||
Kubota Credit Owner Trust, 2023-2A, “A2”, 5.61%, 7/15/2026 (n) | 1,192,482 | 1,196,069 | ||
LCCM 2021-FL2 Trust, “C”, FLR, 7.626% ((SOFR - 1mo. + 0.11448%) + 2.15%), 12/13/2038 (n) | 1,985,500 | 1,842,332 | ||
LoanCore 2019-CRE2 Ltd., “D”, FLR, 7.926% ((SOFR - 1mo. + 0.11448%) + 2.45%), 5/15/2036 (n) | 1,121,500 | 1,042,784 | ||
LoanCore 2021-CRE5 Ltd., “AS”, FLR, 7.198% ((SOFR - 1mo. + 0.11448%) + 1.75%), 7/15/2036 (n) | 5,666,000 | 5,579,114 | ||
LoanCore 2021-CRE5 Ltd., “B”, FLR, 7.476% ((SOFR - 1mo. + 0.11448%) + 2.0%), 7/15/2036 (n) | 5,318,000 | 5,129,772 | ||
LoanCore 2021-CRE6 Ltd., “B”, FLR, 7.376% ((SOFR - 1mo. + 0.11448%) + 1.9%), 11/15/2038 (n) | 9,970,000 | 9,507,591 | ||
Madison Park Funding Ltd., 2017- 23A, “CR”, FLR, 7.649% ((SOFR - 3mo. + 0.26161%) + 2%), 7/27/2031 (n) | 5,894,060 | 5,829,844 | ||
Merrill Lynch Mortgage Investors, Inc., “A”, 5.47%, 5/25/2036 | 43,667 | 42,478 | ||
Merrill Lynch Mortgage Investors, Inc., “A5”, 4.325%, 4/25/2035 | 64,249 | 56,362 | ||
MF1 2020-FL4 Ltd., “AS”, FLR, 7.576% ((SOFR - 1mo. + 0.11448%) + 2.1%), 11/15/2035 (n) | 2,602,500 | 2,591,771 | ||
MF1 2021-FL5 Ltd., “C”, FLR, 7.176% ((SOFR - 1mo. + 0.11448%) + 1.7%), 7/15/2036 (n) | 2,589,000 | 2,482,903 | ||
MF1 2022-FL8 Ltd., “C”, FLR, 7.556% (SOFR - 30 day + 2.2%), 2/19/2037 (n) | 2,433,741 | 2,335,206 | ||
MF1 2022-FL8 Ltd., “D”, FLR, 8.006% (SOFR - 30 day + 2.65%), 2/19/2037 (n) | 1,407,473 | 1,322,838 | ||
MSWF Commercial Mortgage Trust 2023-2, “A5”, 6.014%, 12/15/2056 | 3,231,641 | 3,470,589 | ||
Neuberger Berman CLO Ltd., 2013-15A, “CR2”, FLR, 7.505% ((SOFR - 3mo. + 0.26161%) + 1.85%), 10/15/2029 (n) | 7,481,614 | 7,380,507 | ||
Oaktree CLO 2019-1A Ltd., “BR”, FLR, 7.424% ((SOFR - 3mo. + 0.26161%) + 1.75%), 4/22/2030 (n) | 5,000,000 | 4,932,415 | ||
Oaktree CLO 2019-1A Ltd., “CR”, FLR, 8.023% ((SOFR - 3mo. + 0.26161%) + 2.35%), 4/22/2030 (n) | 5,744,568 | 5,668,659 | ||
PFP III 2021-7 Ltd., “C”, FLR, 7.102% ((SOFR - 1mo. + 0.11448%) + 1.65%), 4/14/2038 (n) | 258,447 | 251,841 | ||
PFP III 2021-8 Ltd., “D”, FLR, 7.626% ((SOFR - 1mo. + 0.11448%) + 2.15%), 8/09/2037 (n) | 3,737,500 | 3,529,274 | ||
Preferred Term Securities XIX Ltd., CDO, FLR, 5.996% ((SOFR - 3mo. + 0.26161%) + 0.35%), 12/21/2035 (n) | 125,111 | 113,225 | ||
Race Point CLO Ltd., 2013-8A, “AR-2”, FLR, 6.669% ((SOFR - 3mo. + 0.26161%) + 1.04%), 2/20/2030 (n) | 2,769,191 | 2,765,613 | ||
ReadyCap Commercial Mortgage Trust, 2021-FL7, “C”, FLR, 7.67% ((SOFR - 1mo. + 0.11448%) + 2.95%), 11/25/2036 (z) | 1,340,000 | 1,279,150 | ||
ReadyCap Commercial Mortgage Trust, 2021-FL7, “D”, FLR, 8.42% ((SOFR - 1mo. + 0.11448%) + 2.95%), 11/25/2036 (z) | 1,575,000 | 1,438,465 | ||
Residential Funding Mortgage Securities, Inc., FGIC, 3.889%, 12/25/2035 (d)(q) | 2,975 | 101 | ||
Starwood Commercial Mortgage, 2021-FL2, “C”, FLR, 7.546% ((SOFR - 1mo. + 0.11448)% + 2.1%), 4/18/2038 (n) | 2,027,000 | 1,796,459 | ||
Starwood Commercial Mortgage, 2022-FL3, “B”, FLR, 7.296% (SOFR - 30 day + 1.95%), 11/15/2038 (n) | 1,391,000 | 1,349,878 | ||
Starwood Commercial Mortgage, 2022-FL3, “C”, FLR, 7.546% (SOFR - 30 day + 2.2%), 11/15/2038 (n) | 2,632,000 | 2,510,100 | ||
Toyota Lease Owner Trust, 2023-A, “A2”, 5.3%, 8/20/2025 (n) | 914,176 | 912,761 | ||
UBS Commercial Mortgage Trust, 2017-C8, “A4”, 3.983%, 2/15/2051 | 5,865,766 | 5,514,822 | ||
Voya CLO 2012-4A Ltd., “A2R3”, FLR, 7.105% ((SOFR - 3mo. + 0.26161%) + 1.45%), 10/15/2030 (n) | 1,957,793 | 1,940,698 | ||
Voya CLO 2012-4A Ltd., “BR3”, FLR, 7.605% ((SOFR - 3mo. + 0.26161%) + 1.95%), 10/15/2030 (n) | 828,265 | 808,544 | ||
Voya CLO 2012-4A Ltd., “C1R3”, FLR, 8.955% ((SOFR - 3mo. + 0.26161%) + 3.3%), 10/15/2030 (n) | 1,187,823 | 1,179,174 | ||
Wells Fargo Commercial Mortgage Trust, 2016-LC25, “A4”, 3.64%, 12/15/2059 | 13,071,416 | 12,467,232 | ||
Wells Fargo Commercial Mortgage Trust, 2017-C42, “A5”, 3.589%, 12/15/2050 | 3,970,000 | 3,635,416 | ||
$263,987,353 | ||||
Broadcasting – 1.0% | ||||
Discovery Communications LLC, 4.65%, 5/15/2050 | $ | 4,028,000 | $ 3,235,576 | |
WarnerMedia Holdings, Inc., 5.05%, 3/15/2042 | 5,334,000 | 4,702,352 | ||
WarnerMedia Holdings, Inc., 5.141%, 3/15/2052 | 4,694,000 | 4,029,122 | ||
WarnerMedia Holdings, Inc., 5.391%, 3/15/2062 | 1,915,000 | 1,639,988 | ||
WMG Acquisition Corp., 3%, 2/15/2031 (n) | 1,568,000 | 1,343,962 | ||
$14,951,000 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Brokerage & Asset Managers – 0.9% | ||||
Charles Schwab Corp., 5.853% to 5/19/2033, FLR (SOFR - 1 day + 2.5%) to 5/19/2034 | $ | 2,300,000 | $ 2,374,179 | |
Charles Schwab Corp., 5% to 6/01/2027, FLR (CMT - 5yr. + 3.256%) to 6/01/2170 | 6,058,000 | 5,468,963 | ||
LPL Holdings, Inc., 6.75%, 11/17/2028 | 1,167,000 | 1,244,045 | ||
LPL Holdings, Inc., 4%, 3/15/2029 (n) | 4,555,000 | 4,215,273 | ||
$13,302,460 | ||||
Building – 0.7% | ||||
Standard Industries, Inc., 4.375%, 7/15/2030 (n) | $ | 5,875,000 | $ 5,395,531 | |
Standard Industries, Inc., 3.375%, 1/15/2031 (n) | 2,760,000 | 2,374,346 | ||
Vulcan Materials Co., 3.5%, 6/01/2030 | 3,356,000 | 3,121,520 | ||
$10,891,397 | ||||
Business Services – 1.2% | ||||
Equinix, Inc., 2.15%, 7/15/2030 | $ | 4,789,000 | $ 4,057,388 | |
Fiserv, Inc., 3.5%, 7/01/2029 | 2,280,000 | ��� 2,145,087 | ||
Fiserv, Inc., 5.6%, 3/02/2033 | 2,183,000 | 2,278,772 | ||
Global Payments, Inc., 2.9%, 5/15/2030 | 5,153,000 | 4,532,480 | ||
Global Payments, Inc., 2.9%, 11/15/2031 | 1,508,000 | 1,289,927 | ||
Iron Mountain, Inc., 4.5%, 2/15/2031 (n) | 5,315,000 | 4,812,825 | ||
$19,116,479 | ||||
Cable TV – 1.7% | ||||
CCO Holdings LLC/CCO Holdings Capital Corp., 4.5%, 8/15/2030 (n) | $ | 6,587,000 | $ 5,938,076 | |
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 5.25%, 4/01/2053 | 6,586,000 | 5,516,069 | ||
CSC Holdings LLC, 4.125%, 12/01/2030 (n) | 2,940,000 | 2,236,605 | ||
CSC Holdings LLC, 4.5%, 11/15/2031 (n) | 4,065,000 | 3,073,448 | ||
Sirius XM Radio, Inc., 5.5%, 7/01/2029 (n) | 2,184,000 | 2,111,557 | ||
Sirius XM Radio, Inc., 4.125%, 7/01/2030 (n) | 3,995,000 | 3,559,855 | ||
Time Warner Cable, Inc., 4.5%, 9/15/2042 | 3,558,000 | 2,792,090 | ||
Time Warner Entertainment Co. LP, 8.375%, 7/15/2033 | 290,000 | 335,784 | ||
$25,563,484 | ||||
Chemicals – 0.1% | ||||
Axalta Coating Systems Ltd., 3.375%, 2/15/2029 (n) | $ | 1,402,000 | $ 1,258,196 | |
Computer Software – 0.5% | ||||
Dell International LLC/EMC Corp., 5.3%, 10/01/2029 | $ | 6,901,000 | $ 7,106,663 | |
Computer Software - Systems – 0.3% | ||||
SS&C Technologies Holdings, Inc., 5.5%, 9/30/2027 (n) | $ | 4,802,000 | $ 4,733,488 | |
Conglomerates – 1.0% | ||||
Regal Rexnord Corp., 6.05%, 4/15/2028 (n) | $ | 1,521,000 | $ 1,539,672 | |
Regal Rexnord Corp., 6.3%, 2/15/2030 (n) | 4,643,000 | 4,763,305 | ||
Regal Rexnord Corp., 6.4%, 4/15/2033 (n) | 3,600,000 | 3,752,171 | ||
Westinghouse Air Brake Technologies Corp., 4.7%, 9/15/2028 | 4,993,000 | 4,937,341 | ||
$14,992,489 | ||||
Consumer Products – 0.2% | ||||
Haleon US Capital LLC, 3.625%, 3/24/2032 | $ | 3,229,000 | $ 2,978,424 | |
Consumer Services – 0.9% | ||||
Match Group Holdings II LLC, 3.625%, 10/01/2031 (n) | $ | 4,782,000 | $ 4,131,744 | |
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2026 (n) | 2,145,000 | 1,848,969 | ||
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2029 (n) | 6,221,000 | 4,322,840 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Consumer Services – continued | ||||
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2031 (n) | $ | 2,145,000 | $ 1,282,796 | |
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2043 (n) | 5,294,766 | 1,684,225 | ||
$13,270,574 | ||||
Electrical Equipment – 0.3% | ||||
Arrow Electronics, Inc., 2.95%, 2/15/2032 | $ | 4,838,000 | $ 4,089,205 | |
Electronics – 0.4% | ||||
Broadcom, Inc., 3.137%, 11/15/2035 (n) | $ | 3,219,000 | $ 2,642,747 | |
Broadcom, Inc., 4.926%, 5/15/2037 (n) | 3,219,000 | 3,115,124 | ||
$5,757,871 | ||||
Energy - Independent – 0.8% | ||||
EQT Corp., 3.9%, 10/01/2027 | $ | 2,315,000 | $ 2,214,636 | |
EQT Corp., 5%, 1/15/2029 | 1,294,000 | 1,281,865 | ||
EQT Corp., 3.625%, 5/15/2031 (n) | 1,506,000 | 1,344,963 | ||
Leviathan Bond Ltd., 6.75%, 6/30/2030 (n) | 2,670,000 | 2,430,106 | ||
Santos Finance Ltd., 6.875%, 9/19/2033 (n) | 3,007,000 | 3,188,994 | ||
Tengizchevroil Finance Co. International Ltd., 3.25%, 8/15/2030 | 3,294,000 | 2,705,560 | ||
$13,166,124 | ||||
Financial Institutions – 1.2% | ||||
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 6.5%, 7/15/2025 | $ | 3,195,000 | $ 3,235,481 | |
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 3%, 10/29/2028 | 2,329,000 | 2,126,350 | ||
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 3.3%, 1/30/2032 | 2,763,000 | 2,404,721 | ||
Avolon Holdings Funding Ltd., 2.125%, 2/21/2026 (n) | 2,890,000 | 2,677,933 | ||
Avolon Holdings Funding Ltd., 4.25%, 4/15/2026 (n) | 1,779,000 | 1,718,183 | ||
Avolon Holdings Funding Ltd., 2.75%, 2/21/2028 (n) | 2,615,000 | 2,323,006 | ||
Global Aircraft Leasing Co. Ltd., 6.5% (6.5% Cash or 7.25% PIK), 9/15/2024 (n)(p) | 3,989,171 | 3,749,821 | ||
$18,235,495 | ||||
Food & Beverages – 0.5% | ||||
JBS USA Lux S.A./JBS USA Food Co./JBS USA Finance, Inc., 5.5%, 1/15/2030 | $ | 4,965,000 | $ 4,879,484 | |
Post Holdings, Inc., 5.5%, 12/15/2029 (n) | 1,441,000 | 1,388,501 | ||
Post Holdings, Inc., 4.625%, 4/15/2030 (n) | 1,225,000 | 1,126,808 | ||
Post Holdings, Inc., 4.5%, 9/15/2031 (n) | 216,000 | 193,568 | ||
$7,588,361 | ||||
Gaming & Lodging – 0.2% | ||||
Marriott International, Inc., 3.5%, 10/15/2032 | $ | 3,330,000 | $ 2,968,877 | |
Insurance – 0.5% | ||||
Corebridge Financial, Inc., 3.9%, 4/05/2032 | $ | 3,293,000 | $ 2,976,761 | |
Corebridge Financial, Inc., 5.75%, 1/15/2034 | 2,801,000 | 2,863,083 | ||
Corebridge Financial, Inc., 4.35%, 4/05/2042 | 442,000 | 374,618 | ||
Corebridge Financial, Inc., 4.4%, 4/05/2052 | 1,291,000 | 1,082,042 | ||
$7,296,504 | ||||
Insurance - Health – 0.3% | ||||
Humana, Inc., 5.875%, 3/01/2033 | $ | 4,131,000 | $ 4,400,725 | |
Insurance - Property & Casualty – 1.3% | ||||
Allied World Assurance Co. Holdings Ltd., 4.35%, 10/29/2025 | $ | 6,835,000 | $ 6,654,816 | |
Aon Corp., 3.75%, 5/02/2029 | 3,245,000 | 3,104,048 | ||
Fairfax Financial Holdings Ltd., 4.85%, 4/17/2028 | 5,692,000 | 5,603,771 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Insurance - Property & Casualty – continued | ||||
Fairfax Financial Holdings Ltd., 3.375%, 3/03/2031 | $ | 1,060,000 | $ 931,492 | |
Fairfax Financial Holdings Ltd., 5.625%, 8/16/2032 | 2,374,000 | 2,371,696 | ||
Liberty Mutual Group, Inc., 3.951%, 10/15/2050 (n) | 2,221,000 | 1,678,524 | ||
$20,344,347 | ||||
International Market Quasi-Sovereign – 0.3% | ||||
Electricite de France S.A., 4.875%, 9/21/2038 (n) | $ | 2,687,000 | $ 2,482,724 | |
Electricite de France S.A., 6.9%, 5/23/2053 (n) | 1,704,000 | 1,927,072 | ||
$4,409,796 | ||||
Machinery & Tools – 0.3% | ||||
Ashtead Capital, Inc., 5.55%, 5/30/2033 (n) | $ | 3,631,000 | $ 3,592,700 | |
CNH Industrial N.V., 3.85%, 11/15/2027 | 1,328,000 | 1,279,284 | ||
$4,871,984 | ||||
Major Banks – 7.3% | ||||
Bank of America Corp., 2.496% to 2/13/2030, FLR ((SOFR - 3mo. + 0.26161%) + 0.99%) to 2/13/2031 | $ | 4,007,000 | $ 3,440,877 | |
Bank of America Corp., 2.572% to 10/20/2031, FLR (SOFR - 1 day + 1.21%) to 10/20/2032 | 10,928,000 | 9,060,096 | ||
Bank of America Corp., 5.875% to 3/15/2028, FLR ((SOFR - 3mo. + 0.26161%) + 2.931%) to 9/15/2171 | 3,924,000 | 3,756,685 | ||
Bank of America Corp., 6.1%, 9/17/2171 | 6,096,000 | 6,038,137 | ||
Bank of America Corp., 6.5% to 10/23/2024, FLR ((SOFR - 3mo. + 0.26161%) + 4.174%) to 4/23/2172 | 3,843,000 | 3,824,375 | ||
Barclays PLC, 4.972% to 5/16/2028, FLR (LIBOR - 3mo. + 1.902%) to 5/16/2029 | 3,191,000 | 3,132,508 | ||
Barclays PLC, 2.894% to 11/24/2031, FLR (CMT - 1yr. + 1.3%) to 11/24/2032 | 3,776,000 | 3,094,735 | ||
Capital One Financial Corp., 5.817% to 2/01/2033, FLR (SOFR - 1 day + 2.6%) to 2/01/2034 | 2,325,000 | 2,313,668 | ||
Capital One Financial Corp., 6.377% to 6/08/2033, FLR (SOFR - 1 day + 2.860%) to 6/08/2034 | 2,325,000 | 2,392,884 | ||
Deutsche Bank AG, 2.311% to 11/16/2026, FLR (SOFR - 1 day + 1.219%) to 11/16/2027 | 5,055,000 | 4,622,248 | ||
Deutsche Bank AG, 6.72% to 1/18/2028, FLR (SOFR - 1 day + 3.18%) to 1/18/2029 | 5,453,000 | 5,710,418 | ||
Goldman Sachs Group, Inc., 2.6%, 2/07/2030 | 6,000,000 | 5,272,448 | ||
HSBC Holdings PLC, 4.7% to 9/09/2031, FLR (CMT - 1yr. + 3.25%) to 9/09/2169 | 6,176,000 | 5,030,009 | ||
HSBC Holdings PLC, 4% to 9/09/2026, FLR (CMT - 1yr. + 3.222%) to 9/09/2170 | 2,447,000 | 2,245,188 | ||
JPMorgan Chase & Co., 3.509% to 1/23/2028, FLR ((SOFR - 3mo. + 0.26161%) + 0.945%) to 1/23/2029 | 2,290,000 | 2,169,937 | ||
JPMorgan Chase & Co., 4.005% to 4/23/2028, FLR ((SOFR - 3mo. + 0.26161%) + 1.12%) to 4/23/2029 | 5,871,000 | 5,648,746 | ||
JPMorgan Chase & Co., 4.203% to 7/23/2028, FLR ((SOFR - 3mo. + 0.26161%) + 1.26%) to 7/23/2029 | 2,576,000 | 2,503,153 | ||
JPMorgan Chase & Co., 2.956% to 5/13/2030, FLR (SOFR - 1 day + 2.515%) to 5/13/2031 | 4,435,000 | 3,897,361 | ||
JPMorgan Chase & Co., 2.545% to 11/08/2031, FLR (SOFR - 1 day + 1.18%) to 11/08/2032 | 3,363,000 | 2,806,014 | ||
Lloyds Bank PLC, 3.75%, 1/11/2027 | 2,765,000 | 2,653,474 | ||
Morgan Stanley, 5.449% to 7/20/2028, FLR (SOFR - 1 day + 1.63%) to 7/20/2029 | 1,239,000 | 1,262,481 | ||
Morgan Stanley, 2.511% to 10/20/2031, FLR (SOFR - 1 day + 1.2%) to 10/20/2032 | 6,985,000 | 5,783,848 | ||
Morgan Stanley, 5.424% to 7/21/2033, FLR (SOFR - 1 day + 1.88%) to 7/21/2034 | 2,940,000 | 2,983,741 | ||
NatWest Group PLC, 6.016% to 3/02/2033, FLR (CMT - 1yr. + 2.1%) to 3/02/2034 | 769,000 | 807,425 | ||
Sumitomo Mitsui Financial Group, Inc., 2.13%, 7/08/2030 | 5,402,000 | 4,549,365 | ||
Sumitomo Mitsui Trust Bank Ltd., 0.85%, 3/25/2024 (n) | 1,311,000 | 1,297,599 | ||
UBS Group AG, 4.375% to 2/10/2031, FLR (CMT - 1yr. + 3.313%) to 12/31/2164 (n) | 7,084,000 | 5,594,794 | ||
UBS Group Funding (Jersey) Ltd., 4.125%, 9/24/2025 (n) | 4,524,000 | 4,424,420 | ||
Wells Fargo & Co., 2.572% to 2/11/2030, FLR ((SOFR - 3mo. + 0.26161%) + 1%) to 2/11/2031 | 4,514,000 | 3,900,639 | ||
Westpac Banking Corp., 2.894% to 2/04/2025, FLR (CMT - 5yr. + 1.35%) to 2/04/2030 | 2,633,000 | 2,536,533 | ||
$112,753,806 | ||||
Medical & Health Technology & Services – 1.9% | ||||
Adventist Health System/West, 5.43%, 3/01/2032 | $ | 4,476,000 | $ 4,552,718 | |
Alcon Finance Corp., 2.75%, 9/23/2026 (n) | 593,000 | 557,140 | ||
Alcon Finance Corp., 2.6%, 5/27/2030 (n) | 1,096,000 | 950,043 | ||
Alcon Finance Corp., 5.375%, 12/06/2032 (n) | 1,318,000 | 1,359,429 | ||
HCA, Inc., 4.125%, 6/15/2029 | 3,255,000 | 3,112,168 | ||
HCA, Inc., 4.375%, 3/15/2042 | 3,251,000 | 2,746,431 | ||
Marin General Hospital, 7.242%, 8/01/2045 | 2,243,000 | 2,410,863 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Medical & Health Technology & Services – continued | ||||
Northwell Healthcare, Inc., 3.979%, 11/01/2046 | $ | 1,503,000 | $ 1,214,435 | |
ProMedica Toledo Hospital, “B”, 5.325%, 11/15/2028 | 7,120,000 | 6,523,700 | ||
ProMedica Toledo Hospital, “B”, AGM, 5.75%, 11/15/2038 | 2,562,000 | 2,544,786 | ||
Tower Health, 4.451%, 2/01/2050 | 6,211,000 | 2,934,697 | ||
$28,906,410 | ||||
Metals & Mining – 1.4% | ||||
Anglo American Capital PLC, 2.25%, 3/17/2028 (n) | $ | 2,504,000 | $ 2,231,302 | |
Anglo American Capital PLC, 3.875%, 3/16/2029 (n) | 3,434,000 | 3,220,831 | ||
Anglo American Capital PLC, 2.875%, 3/17/2031 (n) | 2,927,000 | 2,489,239 | ||
Anglo American Capital PLC, 4.75%, 3/16/2052 (n) | 4,511,000 | 3,869,259 | ||
FMG Resources Ltd., 4.375%, 4/01/2031 (n) | 3,922,000 | 3,586,723 | ||
Glencore Funding LLC, 2.85%, 4/27/2031 (n) | 4,010,000 | 3,457,826 | ||
Novelis Corp., 3.875%, 8/15/2031 (n) | 2,661,000 | 2,344,964 | ||
$21,200,144 | ||||
Midstream – 2.4% | ||||
Cheniere Corpus Christi Holdings LLC, 2.742%, 12/31/2039 | $ | 1,939,000 | $ 1,544,779 | |
Cheniere Energy Partners LP, 4.5%, 10/01/2029 | 2,483,000 | 2,374,907 | ||
Enbridge, Inc., 5.7%, 3/08/2033 | 1,601,000 | 1,664,075 | ||
Energy Transfer LP, 5.55%, 2/15/2028 | 1,261,000 | 1,286,346 | ||
Energy Transfer LP, 5.75%, 2/15/2033 | 3,863,000 | 3,982,672 | ||
Kinder Morgan (Delaware), Inc., 7.75%, 1/15/2032 | 3,350,000 | 3,808,597 | ||
Kinder Morgan Energy Partners LP, 6.375%, 3/01/2041 | 2,040,000 | 2,095,215 | ||
MPLX LP, 4.95%, 3/14/2052 | 5,874,000 | 5,225,195 | ||
Plains All American Pipeline LP, 3.55%, 12/15/2029 | 2,839,000 | 2,613,782 | ||
Sabine Pass Liquefaction LLC, 4.5%, 5/15/2030 | 1,975,000 | 1,930,100 | ||
Targa Resources Corp., 4.2%, 2/01/2033 | 930,000 | 855,073 | ||
Targa Resources Corp., 6.125%, 3/15/2033 | 4,345,000 | 4,574,581 | ||
Targa Resources Corp., 4.95%, 4/15/2052 | 1,533,000 | 1,344,893 | ||
Venture Global Calcasieu Pass LLC, 6.25%, 1/15/2030 (n) | 4,349,000 | 4,325,469 | ||
$37,625,684 | ||||
Mortgage-Backed – 21.9% | ||||
Fannie Mae, 5%, 3/01/2024 - 3/01/2042 | $ | 2,281,688 | $ 2,317,869 | |
Fannie Mae, 4.5%, 5/01/2024 - 6/01/2044 | 7,555,460 | 7,523,937 | ||
Fannie Mae, 5.5%, 7/01/2024 - 4/01/2040 | 3,204,803 | 3,298,810 | ||
Fannie Mae, 3.5%, 3/01/2026 - 7/01/2046 | 6,106,958 | 5,752,588 | ||
Fannie Mae, 3.95%, 1/01/2027 | 309,387 | 304,959 | ||
Fannie Mae, 3%, 11/01/2028 - 8/01/2047 | 5,366,282 | 4,936,359 | ||
Fannie Mae, 2.5%, 11/01/2031 - 11/01/2046 | 712,246 | 623,945 | ||
Fannie Mae, 6.5%, 7/01/2032 - 1/01/2033 | 1,868 | 1,945 | ||
Fannie Mae, 3%, 2/25/2033 (i) | 321,902 | 26,691 | ||
Fannie Mae, 6%, 10/01/2035 - 3/01/2039 | 828,194 | 862,792 | ||
Fannie Mae, 4%, 12/01/2039 - 1/01/2047 | 12,580,362 | 12,239,755 | ||
Fannie Mae, 3.25%, 5/25/2040 | 102,499 | 94,917 | ||
Fannie Mae, 2%, 4/25/2046 | 239,133 | 216,807 | ||
Fannie Mae, 4%, 7/25/2046 (i) | 364,667 | 68,007 | ||
Fannie Mae, 3.5%, 12/01/2046 (f) | 1,283,248 | 1,201,223 | ||
Fannie Mae, UMBS, 2%, 10/01/2036 - 3/01/2052 | 46,180,816 | 39,085,249 | ||
Fannie Mae, UMBS, 2.5%, 11/01/2036 - 6/01/2052 | 44,161,777 | 38,109,272 | ||
Fannie Mae, UMBS, 3%, 9/01/2037 - 10/01/2052 | 18,543,747 | 16,643,273 | ||
Fannie Mae, UMBS, 1.5%, 2/01/2042 | 168,182 | 139,374 | ||
Fannie Mae, UMBS, 6.5%, 4/01/2043 - 10/01/2053 | 900,001 | 922,249 | ||
Fannie Mae, UMBS, 3.5%, 5/01/2052 - 4/01/2053 | 2,506,349 | 2,302,149 | ||
Fannie Mae, UMBS, 4.5%, 9/01/2052 | 754,637 | 735,969 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Mortgage-Backed – continued | ||||
Fannie Mae, UMBS, 5%, 12/01/2052 - 3/01/2053 | $ | 6,242,213 | $ 6,179,949 | |
Fannie Mae, UMBS, 6%, 12/01/2052 - 2/01/2053 | 2,019,881 | 2,072,067 | ||
Fannie Mae, UMBS, 5.5%, 4/01/2053 - 11/01/2053 | 3,797,343 | 3,813,928 | ||
Federal Home Loan Bank, 5%, 7/01/2035 | 686,018 | 698,083 | ||
Freddie Mac, 2.67%, 12/25/2024 | 2,784,000 | 2,721,575 | ||
Freddie Mac, 2.811%, 1/25/2025 | 3,379,996 | 3,301,798 | ||
Freddie Mac, 4%, 7/01/2025 - 4/01/2044 | 1,239,709 | 1,202,333 | ||
Freddie Mac, 4.5%, 7/01/2025 - 5/01/2042 | 1,954,506 | 1,952,306 | ||
Freddie Mac, 3.3%, 10/25/2026 | 2,958,000 | 2,866,035 | ||
Freddie Mac, 3%, 6/15/2028 - 2/25/2059 | 9,580,885 | 8,756,962 | ||
Freddie Mac, 1.09%, 7/25/2029 (i) | 4,028,617 | 198,928 | ||
Freddie Mac, 1.142%, 8/25/2029 (i) | 6,945,267 | 361,914 | ||
Freddie Mac, 1.868%, 4/25/2030 (i) | 1,901,414 | 183,104 | ||
Freddie Mac, 5.5%, 5/01/2034 - 1/01/2038 | 148,896 | 153,411 | ||
Freddie Mac, 6%, 8/01/2034 - 7/01/2038 | 43,182 | 44,999 | ||
Freddie Mac, 5%, 11/01/2035 - 7/01/2041 | 674,806 | 686,425 | ||
Freddie Mac, 5.5%, 2/15/2036 (i) | 66,917 | 11,991 | ||
Freddie Mac, 3.5%, 11/01/2037 - 10/25/2058 | 10,791,847 | 10,127,369 | ||
Freddie Mac, 4.5%, 12/15/2040 (i) | 38,597 | 3,105 | ||
Freddie Mac, 4%, 8/15/2044 (i) | 69,281 | 7,142 | ||
Freddie Mac, 3.25%, 11/25/2061 | 759,340 | 657,944 | ||
Freddie Mac, UMBS, 2%, 4/01/2037 - 5/01/2052 | 38,469,268 | 31,907,580 | ||
Freddie Mac, UMBS, 3.5%, 12/01/2046 - 4/01/2053 | 3,041,519 | 2,801,313 | ||
Freddie Mac, UMBS, 3%, 3/01/2047 - 6/01/2052 | 2,785,179 | 2,499,580 | ||
Freddie Mac, UMBS, 2.5%, 2/01/2051 - 9/01/2052 | 18,394,793 | 15,670,110 | ||
Freddie Mac, UMBS, 5%, 8/01/2052 - 10/01/2052 | 737,463 | 730,609 | ||
Freddie Mac, UMBS, 4%, 10/01/2052 | 1,340,766 | 1,268,065 | ||
Freddie Mac, UMBS, 4.5%, 10/01/2052 | 1,573,660 | 1,525,911 | ||
Freddie Mac, UMBS, 5.5%, 4/01/2053 - 10/01/2053 | 6,809,293 | 6,847,161 | ||
Ginnie Mae, 5.5%, 5/15/2033 - 4/20/2053 | 5,103,295 | 5,153,032 | ||
Ginnie Mae, 4.5%, 10/20/2033 - 12/20/2052 | 13,245,718 | 13,011,375 | ||
Ginnie Mae, 6%, 1/20/2036 - 1/15/2039 | 78,141 | 80,818 | ||
Ginnie Mae, 4%, 10/20/2040 - 10/20/2052 | 8,206,940 | 7,857,709 | ||
Ginnie Mae, 3.5%, 11/15/2040 - 9/20/2053 | 9,856,072 | 9,238,253 | ||
Ginnie Mae, 3%, 11/20/2044 - 10/20/2052 | 12,734,932 | 11,622,626 | ||
Ginnie Mae, 2.5%, 8/20/2051 - 4/20/2052 | 12,021,109 | 10,510,711 | ||
Ginnie Mae, 2%, 1/20/2052 - 4/20/2052 | 13,715,695 | 11,603,774 | ||
Ginnie Mae, 5%, 1/20/2053 - 5/20/2053 | 11,901,898 | 11,817,095 | ||
Ginnie Mae, TBA, 3%, 1/15/2054 | 1,925,000 | 1,742,722 | ||
Ginnie Mae, TBA, 6%, 1/15/2054 | 1,975,000 | 2,008,097 | ||
Ginnie Mae, TBA, 6.5%, 1/15/2054 | 2,475,000 | 2,533,491 | ||
UMBS, TBA, 2%, 1/18/2039 | 125,000 | 112,051 | ||
UMBS, TBA, 2.5%, 1/18/2039 - 1/16/2054 | 2,003,626 | 1,773,118 | ||
UMBS, TBA, 5%, 1/25/2039 | 275,000 | 276,633 | ||
$336,001,341 | ||||
Municipals – 1.3% | ||||
Bridgeview, IL, Stadium and Redevelopment Projects, Taxable, AAC, 5.06%, 12/01/2025 | $ | 415,000 | $ 409,197 | |
Bridgeview, IL, Stadium and Redevelopment Projects, Taxable, AAC, 5.14%, 12/01/2036 | 8,850,000 | 7,927,120 | ||
Escambia County, FL, Health Facilities Authority Rev., Taxable (Baptist Health Care Corp.), “B”, AGM, 3.607%, 8/15/2040 | 1,295,000 | 1,041,990 | ||
Oklahoma Development Finance Authority, Health System Rev., Taxable (OU Medicine Project), “C”, 5.45%, 8/15/2028 | 3,770,000 | 3,383,963 | ||
Philadelphia, PA, School District, Taxable, “B”, AGM, 6.615%, 6/01/2030 | 3,250,000 | 3,481,882 | ||
State of Florida, Taxable, “A”, 2.154%, 7/01/2030 | 5,223,000 | 4,455,212 | ||
$20,699,364 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Natural Gas - Distribution – 0.7% | ||||
Boston Gas Co., 3.15%, 8/01/2027 (n) | $ | 9,122,000 | $ 8,573,693 | |
NiSource, Inc., 3.6%, 5/01/2030 | 2,622,000 | 2,439,604 | ||
$11,013,297 | ||||
Oils – 0.2% | ||||
Marathon Petroleum Corp., 5.85%, 12/15/2045 | $ | 2,507,000 | $ 2,454,874 | |
Other Banks & Diversified Financials – 1.8% | ||||
Discover Financial Services, 6.7%, 11/29/2032 | $ | 7,435,000 | $ 7,788,457 | |
Groupe BPCE S.A., 4.5%, 3/15/2025 (n) | 5,458,000 | 5,353,479 | ||
Macquarie Bank Ltd. of London, 6.125% to 3/08/2027, FLR (Swap Rate - 5yr. + 4.332%) to 12/31/2099 (n) | 4,694,000 | 4,360,501 | ||
Macquarie Group Ltd., 4.442% to 6/21/2032, FLR (SOFR - 1 day + 2.405%) to 6/21/2033 (n) | 11,447,000 | 10,444,584 | ||
$27,947,021 | ||||
Real Estate - Office – 0.4% | ||||
Boston Properties LP, REIT, 2.55%, 4/01/2032 | $ | 7,238,000 | $ 5,761,953 | |
Retailers – 0.3% | ||||
Penske Automotive Group Co., 3.75%, 6/15/2029 | $ | 5,509,000 | $ 4,900,448 | |
Specialty Chemicals – 0.2% | ||||
International Flavors & Fragrances, Inc., 2.3%, 11/01/2030 (n) | $ | 4,745,000 | $ 3,923,528 | |
Specialty Stores – 0.2% | ||||
DICK'S Sporting Goods, 3.15%, 1/15/2032 | $ | 3,801,000 | $ 3,237,978 | |
Telecommunications - Wireless – 1.2% | ||||
Rogers Communications, Inc., 4.5%, 3/15/2042 | $ | 6,129,000 | $ 5,406,468 | |
Rogers Communications, Inc., 4.55%, 3/15/2052 | 6,129,000 | 5,345,011 | ||
SBA Communications Corp., 3.125%, 2/01/2029 | 4,025,000 | 3,616,449 | ||
T-Mobile USA, Inc., 2.55%, 2/15/2031 | 1,939,000 | 1,670,088 | ||
T-Mobile USA, Inc., 4.375%, 4/15/2040 | 635,000 | 572,949 | ||
Vodafone Group PLC, 5.625%, 2/10/2053 | 1,337,000 | 1,348,115 | ||
$17,959,080 | ||||
Tobacco – 1.1% | ||||
B.A.T. Capital Corp., 4.742%, 3/16/2032 | $ | 5,611,000 | $ 5,382,685 | |
B.A.T. International Finance PLC, 4.448%, 3/16/2028 | 4,936,000 | 4,854,370 | ||
Philip Morris International, Inc., 5.125%, 11/17/2027 | 2,140,000 | 2,178,127 | ||
Philip Morris International, Inc., 5.625%, 11/17/2029 | 922,000 | 966,815 | ||
Philip Morris International, Inc., 5.125%, 2/15/2030 | 3,757,000 | 3,818,314 | ||
$17,200,311 | ||||
Transportation - Services – 0.1% | ||||
ERAC USA Finance LLC, 7%, 10/15/2037 (n) | $ | 1,983,000 | $ 2,317,317 | |
U.S. Government Agencies and Equivalents – 0.8% | ||||
Small Business Administration, 4.93%, 1/01/2024 | $ | 267 | $ 267 | |
Small Business Administration, 4.34%, 3/01/2024 | 523 | 522 | ||
Small Business Administration, 4.99%, 9/01/2024 | 791 | 785 | ||
Small Business Administration, 4.86%, 1/01/2025 | 2,840 | 2,815 | ||
Small Business Administration, 4.625%, 2/01/2025 | 3,743 | 3,700 | ||
Small Business Administration, 5.11%, 4/01/2025 | 1,602 | 1,584 | ||
Small Business Administration, 4.43%, 5/01/2029 | 68,040 | 66,600 | ||
Small Business Administration, 3.21%, 9/01/2030 | 1,216,349 | 1,166,934 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
U.S. Government Agencies and Equivalents – continued | ||||
Small Business Administration, 3.25%, 11/01/2030 | $ | 116,802 | $ 111,711 | |
Small Business Administration, 2.85%, 9/01/2031 | 247,788 | 233,227 | ||
Small Business Administration, 2.37%, 8/01/2032 | 194,149 | 177,933 | ||
Small Business Administration, 2.13%, 1/01/2033 | 930,004 | 854,335 | ||
Small Business Administration, 2.21%, 2/01/2033 | 235,290 | 217,064 | ||
Small Business Administration, 2.22%, 3/01/2033 | 747,698 | 688,350 | ||
Small Business Administration, 2.08%, 4/01/2033 | 1,364,694 | 1,245,469 | ||
Small Business Administration, 2.45%, 6/01/2033 | 1,436,065 | 1,318,135 | ||
Small Business Administration, 3.15%, 7/01/2033 | 1,956,024 | 1,856,438 | ||
Small Business Administration, 3.16%, 8/01/2033 | 2,256,125 | 2,138,822 | ||
Small Business Administration, 3.62%, 9/01/2033 | 1,858,195 | 1,788,982 | ||
$11,873,673 | ||||
U.S. Treasury Obligations – 20.8% | ||||
U.S. Treasury Bonds, 1.375%, 11/15/2040 (f) | $ | 30,300,000 | $ 20,103,340 | |
U.S. Treasury Bonds, 1.75%, 8/15/2041 | 9,700,000 | 6,746,047 | ||
U.S. Treasury Bonds, 2.375%, 2/15/2042 | 9,900,000 | 7,595,930 | ||
U.S. Treasury Bonds, 4%, 11/15/2042 | 17,580,000 | 17,084,876 | ||
U.S. Treasury Bonds, 4.375%, 8/15/2043 | 9,600,000 | 9,799,500 | ||
U.S. Treasury Bonds, 2.375%, 11/15/2049 | 14,700,000 | 10,547,250 | ||
U.S. Treasury Bonds, 1.625%, 11/15/2050 | 3,500,000 | 2,085,234 | ||
U.S. Treasury Bonds, 2.25%, 2/15/2052 | 12,000,000 | 8,318,437 | ||
U.S. Treasury Notes, 3.875%, 3/31/2025 | 5,600,000 | 5,550,781 | ||
U.S. Treasury Notes, 4.625%, 6/30/2025 | 46,200,000 | 46,310,086 | ||
U.S. Treasury Notes, 4.75%, 7/31/2025 | 75,300,000 | 75,641,203 | ||
U.S. Treasury Notes, 5%, 8/31/2025 | 53,400,000 | 53,892,281 | ||
U.S. Treasury Notes, 4.125%, 7/31/2028 | 51,400,000 | 51,930,063 | ||
U.S. Treasury Notes, 3.875%, 8/15/2033 | 3,500,000 | 3,495,625 | ||
$319,100,653 | ||||
Utilities - Electric Power – 1.3% | ||||
American Electric Power Co., Inc., 5.95%, 11/01/2032 | $ | 2,985,000 | $ 3,185,981 | |
Calpine Corp., 3.75%, 3/01/2031 (n) | 3,680,000 | 3,227,661 | ||
Enel Finance International N.V., 7.5%, 10/14/2032 (n) | 746,000 | 851,614 | ||
Jersey Central Power & Light Co., 2.75%, 3/01/2032 (n) | 5,303,000 | 4,475,632 | ||
Pacific Gas & Electric Co., 3%, 6/15/2028 | 2,630,000 | 2,396,860 | ||
Pacific Gas & Electric Co., 3.3%, 8/01/2040 | 8,840,000 | 6,468,785 | ||
$20,606,533 | ||||
Total Bonds (Identified Cost, $1,596,428,260) | $1,504,883,559 | |||
Investment Companies (h) – 2.0% | ||||
Money Market Funds – 2.0% | ||||
MFS Institutional Money Market Portfolio, 5.42% (v) (Identified Cost, $31,023,958) | 31,022,184 | $ 31,028,388 | ||
Other Assets, Less Liabilities – 0.0% | 537,782 | |||
Net Assets – 100.0% | $1,536,449,729 |
(d) | In default. |
(f) | All or a portion of the security has been segregated as collateral for open futures contracts. |
(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 $31,028,388 and $1,504,883,559, 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 $360,480,321, representing 23.5% of net assets. |
(p) | Payment-in-kind (PIK) security for which interest income may be received in additional securities and/or cash. |
(q) | Interest received was less than stated coupon rate. |
(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. |
(w) | When-issued security. |
(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 |
ReadyCap Commercial Mortgage Trust, 2021-FL7, “C”, FLR, 7.67% ((SOFR - 1mo. + 0.11448%) + 2.95%), 11/25/2036 | 11/12/21 | $1,340,000 | $1,279,150 |
ReadyCap Commercial Mortgage Trust, 2021-FL7, “D”, FLR, 8.42% ((SOFR - 1mo. + 0.11448%) + 2.95%), 11/25/2036 | 11/12/21 | 1,575,000 | 1,438,465 |
Total Restricted Securities | $2,717,615 | ||
% of Net assets | 0.2% |
The following abbreviations are used in this report and are defined: | |
AAC | Ambac Assurance Corp. |
AGM | Assured Guaranty Municipal |
CDO | Collateralized Debt Obligation |
CLO | Collateralized Loan Obligation |
CMT | Constant Maturity Treasury |
FGIC | Financial Guaranty Insurance Co. |
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 |
NPFG | National Public Finance Guarantee Corp. |
REIT | Real Estate Investment Trust |
SOFR | Secured Overnight Financing Rate |
TBA | To Be Announced |
UMBS | Uniform Mortgage-Backed Security |
Derivative Contracts at 12/31/23 | ||||||
Futures Contracts | ||||||
Description | Long/ Short | Currency | Contracts | Notional Amount | Expiration Date | Value/Unrealized Appreciation (Depreciation) |
Asset Derivatives | ||||||
Interest Rate Futures | ||||||
U.S. Treasury Note 2 yr | Long | USD | 219 | $45,095,180 | March – 2024 | $462,661 |
U.S. Treasury Note 5 yr | Long | USD | 522 | 56,779,735 | March – 2024 | 1,304,464 |
U.S. Treasury Ultra Bond 30 yr | Long | USD | 742 | 99,126,562 | March – 2024 | 9,479,712 |
U.S. Treasury Ultra Note 10 yr | Long | USD | 32 | 3,776,500 | March – 2024 | 140,526 |
$11,387,363 |
Financial Statements | Statement of Assets and Liabilities |
At 12/31/23Assets | |
Investments in unaffiliated issuers, at value (identified cost, $1,596,428,260) | $1,504,883,559 |
Investments in affiliated issuers, at value (identified cost, $31,023,958) | 31,028,388 |
Receivables for | |
Fund shares sold | 146,839 |
Interest | 15,166,774 |
Other assets | 5,363 |
Total assets | $1,551,230,923 |
Liabilities | |
Payables for | |
Net daily variation margin on open futures contracts | $324,908 |
When-issued investments purchased | 4,871,468 |
TBA purchase commitments | 8,374,720 |
Fund shares reacquired | 946,873 |
Payable to affiliates | |
Investment adviser | 82,198 |
Administrative services fee | 2,159 |
Shareholder servicing costs | 242 |
Distribution and/or service fees | 21,520 |
Payable for independent Trustees' compensation | 11 |
Accrued expenses and other liabilities | 157,095 |
Total liabilities | $14,781,194 |
Net assets | $1,536,449,729 |
Net assets consist of | |
Paid-in capital | $1,702,072,103 |
Total distributable earnings (loss) | (165,622,374) |
Net assets | $1,536,449,729 |
Shares of beneficial interest outstanding | 132,665,098 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $752,929,074 | 64,367,911 | $11.70 |
Service Class | 783,520,655 | 68,297,187 | 11.47 |
Financial Statements | Statement of Operations |
Year ended 12/31/23 | |
Net investment income (loss) | |
Income | |
Interest | $69,643,356 |
Dividends from affiliated issuers | 1,334,552 |
Other | 378,249 |
Total investment income | $71,356,157 |
Expenses | |
Management fee | $7,600,129 |
Distribution and/or service fees | 1,972,753 |
Shareholder servicing costs | 8,808 |
Administrative services fee | 229,546 |
Independent Trustees' compensation | 26,961 |
Custodian fee | 77,198 |
Shareholder communications | 6,671 |
Audit and tax fees | 91,597 |
Legal fees | 8,205 |
Miscellaneous | 106,877 |
Total expenses | $10,128,745 |
Reduction of expenses by investment adviser | (194,398) |
Net expenses | $9,934,347 |
Net investment income (loss) | $61,421,810 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $(32,151,143) |
Affiliated issuers | 4,449 |
Futures contracts | (14,953,873) |
Net realized gain (loss) | $(47,100,567) |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $78,414,448 |
Affiliated issuers | (8,522) |
Futures contracts | 12,535,211 |
Net unrealized gain (loss) | $90,941,137 |
Net realized and unrealized gain (loss) | $43,840,570 |
Change in net assets from operations | $105,262,380 |
Financial Statements | Statements of Changes in Net Assets |
Year ended | ||
12/31/23 | 12/31/22 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $61,421,810 | $47,125,406 |
Net realized gain (loss) | (47,100,567) | (91,828,320) |
Net unrealized gain (loss) | 90,941,137 | (225,379,690) |
Change in net assets from operations | $105,262,380 | $(270,082,604) |
Total distributions to shareholders | $(47,036,950) | $(62,907,525) |
Change in net assets from fund share transactions | $(53,888,548) | $(106,813,226) |
Total change in net assets | $4,336,882 | $(439,803,355) |
Net assets | ||
At beginning of period | 1,532,112,847 | 1,971,916,202 |
At end of period | $1,536,449,729 | $1,532,112,847 |
Financial Statements | Financial Highlights |
Initial Class | Year ended | ||||
12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | |
Net asset value, beginning of period | $11.26 | $13.63 | $14.12 | $13.48 | $12.65 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.48 | $0.36 | $0.29 | $0.37 | $0.42 |
Net realized and unrealized gain (loss) | 0.33 | (2.25) | (0.40) | 0.76 | 0.87 |
Total from investment operations | $0.81 | $(1.89) | $(0.11) | $1.13 | $1.29 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.37) | $(0.34) | $(0.38) | $(0.49) | $(0.46) |
From net realized gain | — | (0.14) | (0.00)(w) | — | — |
Total distributions declared to shareholders | $(0.37) | $(0.48) | $(0.38) | $(0.49) | $(0.46) |
Net asset value, end of period (x) | $11.70 | $11.26 | $13.63 | $14.12 | $13.48 |
Total return (%) (k)(r)(s)(x) | 7.38 | (13.93) | (0.81) | 8.47 | 10.21 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 |
Expenses after expense reductions | 0.52 | 0.53 | 0.53 | 0.53 | 0.53 |
Net investment income (loss) | 4.17 | 2.94 | 2.10 | 2.71 | 3.14 |
Portfolio turnover | 58 | 120 | 161 | 112 | 79 |
Net assets at end of period (000 omitted) | $752,929 | $730,323 | $928,578 | $921,342 | $939,179 |
Supplemental Ratios (%): | |||||
Portfolio turnover (excluding TBA transactions) (e) | 39 | — | — | — | — |
Service Class | Year ended | ||||
12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | |
Net asset value, beginning of period | $11.04 | $13.37 | $13.86 | $13.24 | $12.43 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.44 | $0.32 | $0.25 | $0.33 | $0.38 |
Net realized and unrealized gain (loss) | 0.33 | (2.21) | (0.40) | 0.74 | 0.85 |
Total from investment operations | $0.77 | $(1.89) | $(0.15) | $1.07 | $1.23 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.34) | $(0.30) | $(0.34) | $(0.45) | $(0.42) |
From net realized gain | — | (0.14) | (0.00)(w) | — | — |
Total distributions declared to shareholders | $(0.34) | $(0.44) | $(0.34) | $(0.45) | $(0.42) |
Net asset value, end of period (x) | $11.47 | $11.04 | $13.37 | $13.86 | $13.24 |
Total return (%) (k)(r)(s)(x) | 7.13 | (14.18) | (1.07) | 8.17 | 9.92 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.79 | 0.79 | 0.79 | 0.79 | 0.79 |
Expenses after expense reductions | 0.77 | 0.78 | 0.78 | 0.78 | 0.78 |
Net investment income (loss) | 3.92 | 2.68 | 1.85 | 2.46 | 2.89 |
Portfolio turnover | 58 | 120 | 161 | 112 | 79 |
Net assets at end of period (000 omitted) | $783,521 | $801,789 | $1,043,338 | $1,090,009 | $1,105,005 |
Supplemental Ratios (%): | |||||
Portfolio turnover (excluding TBA transactions) (e) | 39 | — | — | — | — |
(d) | Per share data is based on average shares outstanding. |
(e) | Beginning with the period ending December 31, 2023, portfolio turnover rates excluding TBA transactions are being added as supplemental data. Refer to Note 2 for more information on TBA transactions and mortgage dollar rolls. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(w) | Per share amount was less than $0.01. |
(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 |
U.S. Treasury Bonds & U.S. Government Agencies & Equivalents | $— | $330,974,326 | $— | $330,974,326 |
Non - U.S. Sovereign Debt | — | 4,409,796 | — | 4,409,796 |
Municipal Bonds | — | 20,699,364 | — | 20,699,364 |
U.S. Corporate Bonds | — | 396,040,871 | — | 396,040,871 |
Residential Mortgage-Backed Securities | — | 336,001,442 | — | 336,001,442 |
Commercial Mortgage-Backed Securities | — | 122,638,463 | — | 122,638,463 |
Asset-Backed Securities (including CDOs) | — | 141,348,789 | — | 141,348,789 |
Foreign Bonds | — | 152,770,508 | — | 152,770,508 |
Mutual Funds | 31,028,388 | — | — | 31,028,388 |
Total | $31,028,388 | $1,504,883,559 | $— | $1,535,911,947 |
Other Financial Instruments | ||||
Futures Contracts – Assets | $11,387,363 | $— | $— | $11,387,363 |
Fair Value (a) | ||
Risk | Derivative Contracts | Asset Derivatives |
Interest Rate | Futures Contracts | $11,387,363 |
Risk | Futures Contracts |
Interest Rate | $(14,953,873) |
Risk | Futures Contracts |
Interest Rate | $12,535,211 |
Year ended 12/31/23 | Year ended 12/31/22 | |
Ordinary income (including any short-term capital gains) | $47,036,950 | $43,461,158 |
Long-term capital gains | — | 19,446,367 |
Total distributions | $47,036,950 | $62,907,525 |
As of 12/31/23 | |
Cost of investments | $1,642,898,449 |
Gross appreciation | 11,950,647 |
Gross depreciation | (107,549,786) |
Net unrealized appreciation (depreciation) | $(95,599,139) |
Undistributed ordinary income | 63,319,741 |
Capital loss carryforwards | (133,342,976) |
Total distributable earnings (loss) | $(165,622,374) |
Short-Term | $(45,153,075) |
Long-Term | (88,189,901) |
Total | $(133,342,976) |
Year ended 12/31/23 | Year ended 12/31/22 | ||
Initial Class | $23,510,514 | $30,812,385 | |
Service Class | 23,526,436 | 32,095,140 | |
Total | $47,036,950 | $62,907,525 |
Up to $2.5 billion | 0.50% |
In excess of $2.5 billion and up to $5 billion | 0.45% |
In excess of $5 billion | 0.40% |
Purchases | Sales | |
U.S. Government securities | $761,521,944 | $660,798,133 |
Non-U.S. Government securities | 111,630,458 | 251,035,541 |
Year ended 12/31/23 | Year ended 12/31/22 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 6,642,627 | $76,276,502 | 5,320,660 | $64,038,372 | |
Service Class | 7,562,789 | 85,214,347 | 5,776,933 | 68,112,867 | |
14,205,416 | $161,490,849 | 11,097,593 | $132,151,239 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | 2,091,130 | $23,044,258 | 2,598,960 | $30,225,899 | |
Service Class | 2,176,359 | 23,526,436 | 2,810,433 | 32,095,140 | |
4,267,489 | $46,570,694 | 5,409,393 | $62,321,039 | ||
Shares reacquired | |||||
Initial Class | (9,248,852) | $(105,025,789) | (11,162,526) | $(135,116,602) | |
Service Class | (14,050,307) | (156,924,302) | (13,997,512) | (166,168,902) | |
(23,299,159) | $(261,950,091) | (25,160,038) | $(301,285,504) | ||
Net change | |||||
Initial Class | (515,095) | $(5,705,029) | (3,242,906) | $(40,852,331) | |
Service Class | (4,311,159) | (48,183,519) | (5,410,146) | (65,960,895) | |
(4,826,254) | $(53,888,548) | (8,653,052) | $(106,813,226) |
MFS Conservative Allocation Portfolio were the owners of record of approximately 8% and 3%, respectively, of the value ofoutstanding voting shares of the fund. In addition, the MFS Growth Allocation Portfolio was the owner of record of less than 1%
of the value of the outstanding voting shares of the fund.
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $43,144,046 | $420,635,084 | $432,746,669 | $4,449 | $(8,522) | $31,028,388 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $1,334,552 | $— |
February 14, 2024
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 TRUSTEE | ||||||||||
Michael W. Roberge (k) (age 57) | 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) | N/A | |||||
INDEPENDENT TRUSTEES | ||||||||||
John P. Kavanaugh (age 69) | Trustee and Chair of Trustees | January 2009 | 136 | Private investor | N/A | |||||
Steven E. Buller (age 72) | Trustee | February 2014 | 136 | Private investor | N/A | |||||
John A. Caroselli (age 69) | Trustee | March 2017 | 136 | Private investor; JC Global Advisors, LLC (management consulting), President (since 2015) | N/A | |||||
Maureen R. Goldfarb (age 68) | Trustee | January 2009 | 136 | Private investor | N/A | |||||
Peter D. Jones (age 68) | Trustee | January 2019 | 136 | Private investor | N/A | |||||
James W. Kilman, Jr. (age 62) | 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) | |||||
Clarence Otis, Jr. (age 67) | Trustee | March 2017 | 136 | Private investor | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director | |||||
Maryanne L. Roepke (age 67) | Trustee | May 2014 | 136 | Private investor | N/A | |||||
Laurie J. Thomsen (age 66) | 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 50) | Assistant Secretary and Assistant Clerk | July 2005 | 136 | Massachusetts Financial Services Company, Senior Vice President and Senior Managing Counsel | ||||
Kino Clark (k) (age 55) | Assistant Treasurer | January 2012 | 136 | Massachusetts Financial Services Company, Vice President |
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 | ||||
John W. Clark, Jr. (k) (age 56) | Assistant Treasurer | April 2017 | 136 | Massachusetts Financial Services Company, Vice President | ||||
David L. DiLorenzo (k) (age 55) | President | July 2005 | 136 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 56) | Secretary and Clerk | April 2017 | 136 | Massachusetts Financial Services Company, Executive Vice President and General Counsel | ||||
Brian E. Langenfeld (k) (age 50) | Assistant Secretary and Assistant Clerk | June 2006 | 136 | Massachusetts Financial Services Company, Vice President and Managing Counsel | ||||
Rosa E. Licea-Mailloux (k) (age 47) | 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) | ||||
Amanda S. Mooradian (k) (age 44) | Assistant Secretary and Assistant Clerk | September 2018 | 136 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 53) | Assistant Secretary and Assistant Clerk | July 2005 | 136 | Massachusetts Financial Services Company, Vice President and Managing Counsel | ||||
Kasey L. Phillips (k) (age 53) | Assistant Treasurer | September 2012 | 136 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 49) | Assistant Secretary and Assistant Clerk | October 2014 | 136 | Massachusetts Financial Services Company, Vice President and Senior Managing Counsel | ||||
William B. Wilson (k) (age 41) | Assistant Secretary and Assistant Clerk | October 2022 | 136 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
James O. Yost (k) (age 63) | 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 Congress Street, Suite 1 Boston, MA 02114-2016 |
Distributor | Independent Registered Public Accounting Firm |
MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618 | Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 |
Portfolio Manager(s) | |
Alexander Mackey Joshua Marston |
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. |
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42 |
U.S. Treasury Note 5 yr Future - MAR 2024 | 3.1% |
Goldman Sachs Group, Inc. | 2.3% |
JPMorgan Chase & Co. | 2.1% |
UMBS, 2.5%, 30 year (h) | 1.9% |
Charles Schwab Corp. | 1.9% |
Comcast Corp., “A” | 1.8% |
Microsoft Corp. | 1.8% |
Cigna Group | 1.5% |
Eaton Corp. PLC | 1.5% |
U.S. Treasury Notes, 0.375%, 11/30/2025 | 1.4% |
AAA | 4.4% |
AA | 2.0% |
A | 4.8% |
BBB | 7.8% |
BB (o) | 0.0% |
CCC (o) | 0.0% |
U.S. Government | 7.9% |
Federal Agencies | 13.0% |
Not Rated | 4.1% |
Non-Fixed Income | 59.3% |
Cash & Cash Equivalents | 0.8% |
Other | (4.1)% |
Financials | 15.7% |
Industrials | 9.2% |
Health Care | 7.9% |
Information Technology | 6.9% |
Communication Services | 4.8% |
Consumer Staples | 3.7% |
Energy | 3.6% |
Utilities | 2.8% |
Consumer Discretionary | 2.4% |
Materials | 2.3% |
Mortgage-Backed Securities | 13.0% |
Investment Grade Corporates | 12.4% |
U.S. Treasury Securities | 11.9% |
Collateralized Debt Obligations | 3.3% |
Commercial Mortgage-Backed Securities | 2.0% |
Asset-Backed Securities | 0.8% |
Municipal Bonds | 0.4% |
Emerging Markets Bonds | 0.1% |
High Yield Corporates | 0.1% |
Non-U.S. Government Bonds (o) | 0.0% |
U.S. Government Agencies (o) | 0.0% |
(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. U.S. Government includes securities issued by the U.S. Department of the Treasury. Federal Agencies includes rated and unrated U.S. Agency fixed-income securities, U.S. Agency mortgage-backed securities, and collateralized mortgage obligations of U.S. Agency mortgage-backed securities. Not Rated includes fixed income securities and fixed income derivatives |
(g) | The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and S&P Global Market Intelligence Inc. (“S&P Global Market Intelligence”). GICS is a service mark of MSCI and S&P Global Market Intelligence and has been licensed for use by MFS. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS. |
(h) | UMBS may include both Fannie Mae and Freddie Mac securities. |
(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. |
(o) | Less than 0.1%. |
(b) | Security is not a benchmark constituent. |
(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 |
Initial Class | 1/03/1995 | 10.44% | 8.54% | 6.53% |
Service Class | 5/01/2000 | 10.22% | 8.27% | 6.27% |
Standard & Poor's 500 Stock Index (f) | 26.29% | 15.69% | 12.03% |
Bloomberg U.S. Aggregate Bond Index (f) | 5.53% | 1.10% | 1.81% |
MFS Total Return Blended Index (f)(w) | 17.67% | 9.98% | 8.09% |
(f) | Source: FactSet Research Systems Inc. |
(w) | The MFS Total Return Blended Index (a custom index) was comprised of the following at the beginning and at the end of the reporting period: |
12/31/23 | |
Standard & Poor's 500 Stock Index | 60% |
Bloomberg U.S. Aggregate Bond Index | 40% |
(a) | Source: Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg or Bloomberg's licensors own all proprietary rights in the Bloomberg Indices. Bloomberg neither approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith. |
(g) | “Standard & Poor's®” and “S&P®” are registered trademarks of Standard & Poor's Financial Services LLC (“S&P”) and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and sublicensed for certain purposes by MFS. The S&P 500® is a product of S&P Dow Jones Indices LLC, and has been licensed for use by MFS. MFS's product(s) is not sponsored, endorsed, sold, or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates, and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing in such product(s). |
July 1, 2023 through December 31, 2023
Share Class | Annualized Expense Ratio | Beginning Account Value 7/01/23 | Ending Account Value 12/31/23 | Expenses Paid During Period (p) 7/01/23-12/31/23 | |
Initial Class | Actual | 0.61% | $1,000.00 | $1,058.32 | $3.16 |
Hypothetical (h) | 0.61% | $1,000.00 | $1,022.13 | $3.11 | |
Service Class | Actual | 0.86% | $1,000.00 | $1,057.37 | $4.46 |
Hypothetical (h) | 0.86% | $1,000.00 | $1,020.87 | $4.38 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 58.5% | ||||
Aerospace & Defense – 1.8% | ||||
General Dynamics Corp. | 33,985 | $ 8,824,885 | ||
Honeywell International, Inc. | 64,148 | 13,452,477 | ||
Howmet Aerospace, Inc. | 97,715 | 5,288,336 | ||
L3Harris Technologies, Inc. | 60,167 | 12,672,373 | ||
$40,238,071 | ||||
Alcoholic Beverages – 0.8% | ||||
Constellation Brands, Inc., “A” | 40,945 | $ 9,898,454 | ||
Diageo PLC | 217,566 | 7,920,274 | ||
$17,818,728 | ||||
Automotive – 1.9% | ||||
Aptiv PLC (a) | 186,573 | $ 16,739,330 | ||
Lear Corp. | 75,511 | 10,662,908 | ||
LKQ Corp. | 286,981 | 13,714,822 | ||
$41,117,060 | ||||
Broadcasting – 0.9% | ||||
Omnicom Group, Inc. | 164,899 | $ 14,265,413 | ||
Warner Bros. Discovery, Inc. (a) | 540,869 | 6,155,089 | ||
$20,420,502 | ||||
Brokerage & Asset Managers – 2.9% | ||||
Cboe Global Markets, Inc. | 54,185 | $ 9,675,274 | ||
Charles Schwab Corp. | 594,960 | 40,933,248 | ||
CME Group, Inc. | 36,678 | 7,724,387 | ||
Invesco Ltd. | 261,538 | 4,665,838 | ||
$62,998,747 | ||||
Business Services – 2.3% | ||||
Accenture PLC, “A” | 36,163 | $ 12,689,958 | ||
Amdocs Ltd. | 91,567 | 8,047,824 | ||
Cognizant Technology Solutions Corp., “A” | 108,548 | 8,198,630 | ||
Fidelity National Information Services, Inc. | 143,637 | 8,628,275 | ||
Fiserv, Inc. (a) | 92,171 | 12,243,996 | ||
$49,808,683 | ||||
Cable TV – 1.8% | ||||
Comcast Corp., “A” | 891,309 | $ 39,083,900 | ||
Chemicals – 0.7% | ||||
PPG Industries, Inc. | 99,167 | $ 14,830,425 | ||
Computer Software – 2.7% | ||||
Dun & Bradstreet Holdings, Inc. | 1,045,151 | $ 12,228,267 | ||
Microsoft Corp. | 103,848 | 39,051,002 | ||
Oracle Corp. | 70,858 | 7,470,559 | ||
$58,749,828 | ||||
Computer Software - Systems – 0.1% | ||||
Seagate Technology Holdings PLC | 29,040 | $ 2,479,145 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Construction – 1.9% | ||||
Masco Corp. | 379,017 | $ 25,386,559 | ||
Stanley Black & Decker, Inc. | 112,723 | 11,058,126 | ||
Summit Materials, Inc., “A” (a) | 111,362 | 4,282,982 | ||
$40,727,667 | ||||
Consumer Products – 0.5% | ||||
Kenvue, Inc. | 514,592 | $ 11,079,166 | ||
Consumer Services – 0.3% | ||||
Booking Holdings, Inc. (a) | 1,675 | $ 5,941,593 | ||
Electrical Equipment – 1.3% | ||||
Johnson Controls International PLC | 483,454 | $ 27,866,289 | ||
Electronics – 3.1% | ||||
Analog Devices, Inc. | 25,977 | $ 5,157,993 | ||
Applied Materials, Inc. | 58,489 | 9,479,312 | ||
Intel Corp. | 455,977 | 22,912,844 | ||
NXP Semiconductors N.V. | 93,252 | 21,418,120 | ||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 81,956 | 8,523,424 | ||
$67,491,693 | ||||
Energy - Independent – 2.7% | ||||
ConocoPhillips | 238,506 | $ 27,683,391 | ||
Hess Corp. | 139,880 | 20,165,101 | ||
Pioneer Natural Resources Co. | 52,199 | 11,738,511 | ||
$59,587,003 | ||||
Energy - Integrated – 0.9% | ||||
Chevron Corp. | 42,122 | $ 6,282,917 | ||
Suncor Energy, Inc. | 381,334 | 12,216,617 | ||
$18,499,534 | ||||
Food & Beverages – 0.4% | ||||
Archer Daniels Midland Co. | 81,917 | $ 5,916,046 | ||
J.M. Smucker Co. | 28,748 | 3,633,172 | ||
$9,549,218 | ||||
Health Maintenance Organizations – 1.6% | ||||
Cigna Group | 112,688 | $ 33,744,422 | ||
Insurance – 3.2% | ||||
Aon PLC | 71,729 | $ 20,874,573 | ||
Chubb Ltd. | 95,487 | 21,580,062 | ||
Travelers Cos., Inc. | 48,069 | 9,156,664 | ||
Willis Towers Watson PLC | 75,793 | 18,281,272 | ||
$69,892,571 | ||||
Internet – 1.0% | ||||
Alphabet, Inc., “A” (a) | 160,010 | $ 22,351,797 | ||
Leisure & Toys – 0.2% | ||||
Electronic Arts, Inc. | 33,993 | $ 4,650,582 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Machinery & Tools – 2.8% | ||||
Eaton Corp. PLC | 136,098 | $ 32,775,120 | ||
Ingersoll Rand, Inc. | 172,892 | 13,371,467 | ||
Regal Rexnord Corp. | 100,291 | 14,845,074 | ||
$60,991,661 | ||||
Major Banks – 7.0% | ||||
Bank of America Corp. | 904,009 | $ 30,437,983 | ||
Goldman Sachs Group, Inc. | 132,951 | 51,288,507 | ||
JPMorgan Chase & Co. | 265,307 | 45,128,721 | ||
Morgan Stanley | 182,836 | 17,049,457 | ||
PNC Financial Services Group, Inc. | 64,086 | 9,923,717 | ||
$153,828,385 | ||||
Medical & Health Technology & Services – 1.4% | ||||
ICON PLC (a) | 38,515 | $ 10,902,441 | ||
McKesson Corp. | 43,177 | 19,990,088 | ||
$30,892,529 | ||||
Medical Equipment – 1.7% | ||||
Becton, Dickinson and Co. | 45,186 | $ 11,017,703 | ||
Boston Scientific Corp. (a) | 125,567 | 7,259,028 | ||
Medtronic PLC | 232,979 | 19,192,810 | ||
$37,469,541 | ||||
Metals & Mining – 0.2% | ||||
Glencore PLC | 846,058 | $ 5,091,258 | ||
Other Banks & Diversified Financials – 1.7% | ||||
Northern Trust Corp. | 241,800 | $ 20,403,084 | ||
Truist Financial Corp. | 429,197 | 15,845,953 | ||
$36,249,037 | ||||
Pharmaceuticals – 3.2% | ||||
Bayer AG | 277,750 | $ 10,311,703 | ||
Johnson & Johnson | 165,058 | 25,871,191 | ||
Organon & Co. | 148,355 | 2,139,279 | ||
Pfizer, Inc. | 725,057 | 20,874,391 | ||
Roche Holding AG | 39,141 | 11,378,604 | ||
$70,575,168 | ||||
Railroad & Shipping – 1.1% | ||||
Union Pacific Corp. | 98,852 | $ 24,280,028 | ||
Restaurants – 0.2% | ||||
Wendy's Co. | 220,690 | $ 4,299,041 | ||
Specialty Chemicals – 1.2% | ||||
Axalta Coating Systems Ltd. (a) | 407,084 | $ 13,828,643 | ||
DuPont de Nemours, Inc. | 161,049 | 12,389,500 | ||
$26,218,143 | ||||
Specialty Stores – 0.2% | ||||
Target Corp. | 32,771 | $ 4,667,246 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Telecommunications - Wireless – 0.8% | ||||
T-Mobile USA, Inc. | 112,268 | $ 17,999,928 | ||
Tobacco – 1.2% | ||||
Altria Group, Inc. | 144,591 | $ 5,832,801 | ||
Philip Morris International, Inc. | 214,364 | 20,167,365 | ||
$26,000,166 | ||||
Utilities - Electric Power – 2.8% | ||||
Dominion Energy, Inc. | 106,297 | $ 4,995,959 | ||
Duke Energy Corp. | 152,070 | 14,756,873 | ||
Exelon Corp. | 216,077 | 7,757,164 | ||
National Grid PLC | 499,614 | 6,737,694 | ||
PG&E Corp. | 793,750 | 14,311,313 | ||
Southern Co. | 176,826 | 12,399,039 | ||
$60,958,042 | ||||
Total Common Stocks (Identified Cost, $760,659,446) | $1,278,446,797 | |||
Bonds – 39.6% | ||||
Aerospace & Defense – 0.1% | ||||
BAE Systems PLC, 3.4%, 4/15/2030 (n) | $ | 1,108,000 | $ 1,022,369 | |
Asset-Backed & Securitized – 6.0% | ||||
ACRES 2021-FL2 Issuer Ltd., “AS”, FLR, 7.226% ((SOFR - 1mo. + 0.11448%) + 1.75%), 1/15/2037 (n) | $ | 1,851,500 | $ 1,818,662 | |
Allegro CLO Ltd., 2016-1A, “BR2”, FLR, 7.205% ((SOFR - 3mo. + 0.26161%) + 1.55%), 1/15/2030 (n) | 2,407,803 | 2,398,107 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL1, “AS”, FLR, 6.676% ((SOFR - 1mo. + 0.11448%) + 1.2%), 12/15/2035 (n) | 2,115,000 | 2,063,553 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL3, “B”, FLR, 7.076% ((SOFR - 1mo. + 0.11448%) + 1.6%), 8/15/2034 (n) | 1,807,500 | 1,734,210 | ||
Arbor Realty Trust, Inc., CLO, 2022-FL1, “B”, FLR, 7.446% (SOFR - 30 day + 2.1%), 1/15/2037 (n) | 5,076,500 | 4,950,789 | ||
AREIT 2019-CRE3 Trust, “AS”, FLR, 6.776% ((SOFR - 1mo. + 0.11448%) + 1.3%), 9/14/2036 (n) | 2,670,329 | 2,642,245 | ||
AREIT 2022-CRE6 Trust, “B”, FLR, 7.187% (SOFR - 30 day + 1.85%), 1/20/2037 (n) | 3,088,500 | 2,992,970 | ||
ARI Fleet Lease Trust, 2023-B, “A2”, 6.05%, 7/15/2032 (n) | 478,070 | 483,381 | ||
Bain Capital Credit CLO Ltd., 2020-4A, “A1R”, 7.165% (SOFR - 3mo. + 1.75%), 10/19/2036 (n) | 3,189,862 | 3,195,192 | ||
Bayview Financial Revolving Mortgage Loan Trust, FLR, 7.071% ((SOFR - 1mo. + 0.11448%) + 1.6%), 12/28/2040 (n) | 420,682 | 618,526 | ||
Benchmark 2023-V3 Mortgage Trust, “A3”, 6.362%, 7/15/2056 | 134,138 | 140,526 | ||
Brazos Securitization LLC, 5.243%, 9/01/2040 (n) | 1,552,000 | 1,603,835 | ||
BSPRT 2021-FL6 Issuer Ltd., “AS”, FLR, 6.776% ((SOFR - 1mo. + 0.11448%) + 1.3%), 3/15/2036 (n) | 4,964,000 | 4,791,561 | ||
BSPRT 2021-FL7 Issuer Ltd., “B”, FLR, 7.498% ((SOFR - 1mo. + 0.11448%) + 2.05%), 12/15/2038 (n) | 849,500 | 831,485 | ||
BSPRT 2022-FL8 Issuer Ltd., “B”, FLR, 7.396% (SOFR - 30 day + 2.05%), 2/15/2037 (n) | 1,817,000 | 1,769,998 | ||
Business Jet Securities LLC, 2021-1A, “A”, 2.162%, 4/15/2036 (n) | 741,142 | 685,578 | ||
BXMT 2021-FL4 Ltd., “AS”, FLR, 6.776% ((SOFR - 1mo. + 0.11448%) + 1.3%), 5/15/2038 (n) | 5,214,000 | 4,825,626 | ||
CHCP 2021-FL1 Ltd., “AS”, FLR, 6.773% ((SOFR - 1mo. + 0.11448%) + 1.3%), 2/15/2038 (n) | 2,203,500 | 2,186,441 | ||
Chesapeake Funding II LLC, 2023-1A, “A1”, 5.65%, 5/15/2035 (n) | 1,995,328 | 2,000,581 | ||
Columbia Cent CLO 28 Ltd., “A-2-R”, 7.342%, 11/07/2030 (n) | 3,492,733 | 3,467,896 | ||
Commercial Mortgage Pass-Through Certificates, 2023-BNK46, “A4”, 5.745%, 8/15/2056 | 1,872,416 | 1,968,688 | ||
Commercial Mortgage Trust, 2015-LC21, “A4”, 3.708%, 7/10/2048 | 3,980,975 | 3,861,366 | ||
Consumers 2023 Securitization Funding LLC, 5.55%, 3/01/2028 | 1,340,000 | 1,345,220 | ||
Credit Acceptance Auto Loan Trust, 2021-3A, “B”, 1.38%, 7/15/2030 (n) | 1,118,000 | 1,080,992 | ||
Credit Acceptance Auto Loan Trust, 2023-3A, “A”, 6.39%, 8/15/2033 (n) | 546,000 | 553,680 | ||
CSAIL Commercial Mortgage Trust, 2015-C2, “A4”, 3.504%, 6/15/2057 | 2,316,427 | 2,240,776 | ||
Cutwater 2015-1A Ltd., “AR”, FLR, 6.875% ((SOFR - 3mo. + 0.26161%) + 1.22%), 1/15/2029 (n) | 628,673 | 628,361 | ||
Dryden Senior Loan Fund, 2013-26A, “AR”, CLO, FLR, 6.555% ((SOFR - 3mo. + 0.26161%) + 0.9%), 4/15/2029 (n) | 1,540,583 | 1,538,741 | ||
Dryden Senior Loan Fund, 2018-55A, “A1”, CLO, FLR, 6.675% ((SOFR - 3mo. + 0.26161%) + 1.02%), 4/15/2031 (n) | 4,265,873 | 4,259,073 | ||
Enterprise Fleet Financing LLC, 2023-3, “A2”, 6.4%, 3/20/2030 (n) | 1,326,000 | 1,355,335 | ||
GLS Auto Select Receivables Trust, 2023-1A, “A2”, 6.27%, 8/16/2027 (n) | 1,827,588 | 1,834,530 | ||
GLS Auto Select Receivables Trust, 2023-2A, 6.37%, 6/15/2028 (n) | 379,000 | 382,258 | ||
GMAC Mortgage Corp. Loan Trust, FGIC, 5.805%, 10/25/2036 | 84,178 | 83,830 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Asset-Backed & Securitized – continued | ||||
GS Mortgage Securities Trust, 2015-GC30, “A4”, 3.382%, 5/10/2050 | $ | 4,243,101 | $ 4,096,678 | |
JPMBB Commercial Mortgage Securities Trust, 2014-C26, “A4”, 3.494%, 1/15/2048 | 4,880,000 | 4,756,423 | ||
JPMBB Commercial Mortgage Securities Trust, 2015-C28, “A4”, 3.227%, 10/15/2048 | 3,256,792 | 3,138,022 | ||
Kubota Credit Owner Trust, 2023-2A, “A2”, 5.61%, 7/15/2026 (n) | 1,580,599 | 1,585,353 | ||
LCCM 2021-FL2 Trust, “B”, FLR, 7.376% ((SOFR - 1mo. + 0.11448%) + 1.9%), 12/13/2038 (n) | 2,562,000 | 2,415,218 | ||
LoanCore 2021-CRE5 Ltd., “AS”, FLR, 7.198% ((SOFR - 1mo. + 0.11448%) + 1.75%), 7/15/2036 (n) | 5,288,000 | 5,206,910 | ||
MF1 2020-FL4 Ltd., “A”, FLR, 7.176% ((SOFR - 1mo. + 0.11448%) + 1.7%), 11/15/2035 (n) | 869,749 | 869,810 | ||
MF1 2021-FL5 Ltd., “AS”, FLR, 6.676% ((SOFR - 1mo. + 0.11448%) + 1.2%), 7/15/2036 (n) | 5,459,500 | 5,341,837 | ||
MF1 2022-FL8 Ltd., “B”, FLR, 7.305% (SOFR - 30 day + 1.95%), 2/19/2037 (n) | 2,251,053 | 2,192,701 | ||
MidOcean Credit CLO, 2013-2A, “BR”, FLR, 7.302% ((SOFR - 3mo. + 0.26161%) + 1.65%), 1/29/2030 (n) | 3,932,725 | 3,913,958 | ||
Morgan Stanley Bank of America Merrill Lynch Trust, 2017-C34, “A4”, 3.536%, 11/15/2052 | 1,600,004 | 1,491,160 | ||
MSWF Commercial Mortgage Trust 2023-2, “A5”, 6.014%, 12/15/2056 | 2,080,986 | 2,234,854 | ||
Neuberger Berman CLO Ltd., 2013-15A, “BR2”, FLR, 7.005% ((SOFR - 3mo. + 0.26161%) + 1.35%), 10/15/2029 (n) | 1,750,540 | 1,738,066 | ||
Neuberger Berman CLO Ltd., 2015-20A, “ARR”, FLR, 6.815% ((SOFR - 3mo. + 0.26161%) + 1.16%), 7/15/2034 (n) | 1,900,000 | 1,896,210 | ||
Oaktree CLO 2019-1A Ltd., “BR”, FLR, 7.424% ((SOFR - 3mo. + 0.26161%) + 1.75%), 4/22/2030 (n) | 5,195,227 | 5,125,003 | ||
OneMain Financial Issuance Trust 2022-3A, “A”, 5.94%, 5/15/2034 (n) | 2,137,000 | 2,141,831 | ||
ReadyCap Commercial Mortgage Trust, 2021-FL5, “A”, FLR, 6.47% ((SOFR - 1mo. + 0.11448%) + 1%), 4/25/2038 (z) | 1,052,365 | 1,042,303 | ||
ReadyCap Commercial Mortgage Trust, 2021-FL7, “B”, FLR, 7.27% ((SOFR - 1mo. + 0.11448%) + 1.8%), 11/25/2036 (z) | 1,130,000 | 1,101,199 | ||
Residential Funding Mortgage Securities, Inc., FGIC, 3.889%, 12/25/2035 (d)(q) | 63,221 | 2,152 | ||
Starwood Commercial Mortgage, 2022-FL3, “AS”, FLR, 7.146% (SOFR - 30 day + 1.8%), 11/15/2038 (n) | 5,210,500 | 5,020,070 | ||
Toyota Lease Owner Trust, 2023-A, “A2”, 5.3%, 8/20/2025 (n) | 393,236 | 392,627 | ||
TPG Real Estate Finance, 2021-FL4, “A”, FLR, 6.676% ((SOFR - 1mo. + 0.11448%) + 1.2%), 3/15/2038 (n) | 3,800,809 | 3,748,266 | ||
Voya CLO 2012-4A Ltd., “A2R3”, FLR, 7.105% ((SOFR - 3mo. + 0.26161%) + 1.45%), 10/15/2030 (n) | 2,010,166 | 1,992,613 | ||
Wells Fargo Commercial Mortgage Trust, 2015-C28, “A4”, 3.54%, 5/15/2048 | 4,315,766 | 4,172,343 | ||
$131,949,619 | ||||
Automotive – 0.1% | ||||
Lear Corp., 4.25%, 5/15/2029 | $ | 656,000 | $ 631,161 | |
Stellantis Finance US, Inc., 2.691%, 9/15/2031 (n) | 2,944,000 | 2,463,157 | ||
$3,094,318 | ||||
Broadcasting – 0.2% | ||||
WarnerMedia Holdings, Inc., 5.05%, 3/15/2042 | $ | 2,979,000 | $ 2,626,229 | |
WarnerMedia Holdings, Inc., 5.141%, 3/15/2052 | 1,692,000 | 1,452,338 | ||
$4,078,567 | ||||
Brokerage & Asset Managers – 0.4% | ||||
Charles Schwab Corp., 5.853% to 5/19/2033, FLR (SOFR - 1 day + 2.5%) to 5/19/2034 | $ | 3,736,000 | $ 3,856,492 | |
Intercontinental Exchange, Inc., 2.1%, 6/15/2030 | 2,155,000 | 1,867,221 | ||
LPL Holdings, Inc., 6.75%, 11/17/2028 | 355,000 | 378,437 | ||
LPL Holdings, Inc., 4.375%, 5/15/2031 (n) | 2,714,000 | 2,457,611 | ||
$8,559,761 | ||||
Building – 0.2% | ||||
Martin Marietta Materials, Inc., 2.5%, 3/15/2030 | $ | 190,000 | $ 167,275 | |
Masco Corp., 2%, 2/15/2031 | 3,622,000 | 2,976,529 | ||
Vulcan Materials Co., 3.5%, 6/01/2030 | 380,000 | 353,450 | ||
$3,497,254 | ||||
Business Services – 0.6% | ||||
Equinix, Inc., 2.625%, 11/18/2024 | $ | 2,863,000 | $ 2,788,555 | |
Equinix, Inc., 1.8%, 7/15/2027 | 1,829,000 | 1,655,677 | ||
Equinix, Inc., 2.5%, 5/15/2031 | 2,363,000 | 2,005,772 | ||
Experian Finance PLC, 4.25%, 2/01/2029 (n) | 1,450,000 | 1,435,785 | ||
Fiserv, Inc., 2.65%, 6/01/2030 | 730,000 | 641,774 | ||
Global Payments, Inc., 2.9%, 11/15/2031 | 1,699,000 | 1,453,306 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Business Services – continued | ||||
Verisk Analytics, Inc., 4.125%, 3/15/2029 | $ | 1,857,000 | $ 1,811,507 | |
Verisk Analytics, Inc., 5.75%, 4/01/2033 | 1,422,000 | 1,525,213 | ||
$13,317,589 | ||||
Cable TV – 0.4% | ||||
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 6.384%, 10/23/2035 | $ | 1,053,000 | $ 1,068,894 | |
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 3.5%, 6/01/2041 | 2,122,000 | 1,499,845 | ||
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 5.375%, 5/01/2047 | 430,000 | 365,424 | ||
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 5.25%, 4/01/2053 | 1,734,000 | 1,452,302 | ||
Cox Communications, Inc., 1.8%, 10/01/2030 (n) | 1,333,000 | 1,083,858 | ||
Time Warner Entertainment Co. LP, 8.375%, 7/15/2033 | 2,526,000 | 2,924,799 | ||
$8,395,122 | ||||
Chemicals – 0.1% | ||||
RPM International, Inc., 2.95%, 1/15/2032 | $ | 1,427,000 | $ 1,202,540 | |
Computer Software – 0.1% | ||||
Oracle Corp., 4.9%, 2/06/2033 | $ | 740,000 | $ 736,633 | |
Roper Technologies, Inc., 2%, 6/30/2030 | 1,302,000 | 1,105,253 | ||
$1,841,886 | ||||
Conglomerates – 0.1% | ||||
Westinghouse Air Brake Technologies Corp., 3.2%, 6/15/2025 | $ | 808,000 | $ 781,091 | |
Westinghouse Air Brake Technologies Corp., 4.7%, 9/15/2028 | 2,112,000 | 2,088,456 | ||
$2,869,547 | ||||
Consumer Products – 0.1% | ||||
Kenvue, Inc., 4.9%, 3/22/2033 | $ | 2,970,000 | $ 3,061,446 | |
Consumer Services – 0.1% | ||||
Booking Holdings, Inc., 4.625%, 4/13/2030 | $ | 1,430,000 | $ 1,440,700 | |
Electrical Equipment – 0.1% | ||||
Arrow Electronics, Inc., 2.95%, 2/15/2032 | $ | 2,690,000 | $ 2,273,659 | |
Electronics – 0.1% | ||||
Broadcom, Inc., 4.3%, 11/15/2032 | $ | 1,329,000 | $ 1,274,995 | |
Broadcom, Inc., 4.926%, 5/15/2037 (n) | 683,000 | 660,960 | ||
$1,935,955 | ||||
Energy - Integrated – 0.3% | ||||
BP Capital Markets America, Inc., 2.721%, 1/12/2032 | $ | 4,182,000 | $ 3,643,555 | |
Eni S.p.A., 4.75%, 9/12/2028 (n) | 3,564,000 | 3,562,682 | ||
$7,206,237 | ||||
Financial Institutions – 0.7% | ||||
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 4.875%, 1/16/2024 | $ | 362,000 | $ 361,769 | |
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 2.45%, 10/29/2026 | 4,225,000 | 3,912,017 | ||
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 3.65%, 7/21/2027 | 2,329,000 | 2,212,921 | ||
Air Lease Corp., 2.2%, 1/15/2027 | 1,394,000 | 1,276,478 | ||
Air Lease Corp., 2.875%, 1/15/2032 | 1,830,000 | 1,548,474 | ||
Avolon Holdings Funding Ltd., 4.375%, 5/01/2026 (n) | 682,000 | 659,899 | ||
Avolon Holdings Funding Ltd., 3.25%, 2/15/2027 (n) | 2,183,000 | 2,018,927 | ||
Avolon Holdings Funding Ltd., 2.528%, 11/18/2027 (n) | 1,821,000 | 1,613,115 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Financial Institutions – continued | ||||
Park Aerospace Holdings Ltd., 5.5%, 2/15/2024 (n) | $ | 639,000 | $ 637,809 | |
$14,241,409 | ||||
Food & Beverages – 0.3% | ||||
Anheuser-Busch InBev S.A., 8%, 11/15/2039 | $ | 2,950,000 | $ 3,807,583 | |
Anheuser-Busch InBev Worldwide, Inc., 4.375%, 4/15/2038 | 737,000 | 698,915 | ||
Diageo Capital PLC, 2.375%, 10/24/2029 | 2,618,000 | 2,356,976 | ||
Keurig Dr Pepper, Inc., 3.2%, 5/01/2030 | 304,000 | 279,476 | ||
$7,142,950 | ||||
Gaming & Lodging – 0.3% | ||||
GLP Capital LP/GLP Financing II, Inc., 5.3%, 1/15/2029 | $ | 1,593,000 | $ 1,583,789 | |
Las Vegas Sands Corp., 3.9%, 8/08/2029 | 783,000 | 721,462 | ||
Marriott International, Inc., 4.625%, 6/15/2030 | 1,979,000 | 1,943,362 | ||
Marriott International, Inc., 2.85%, 4/15/2031 | 7,000 | 6,058 | ||
Marriott International, Inc., 2.75%, 10/15/2033 | 1,600,000 | 1,320,193 | ||
$5,574,864 | ||||
Insurance – 0.5% | ||||
AIA Group Ltd., 3.375%, 4/07/2030 (n) | $ | 2,338,000 | $ 2,154,142 | |
Corebridge Financial, Inc., 3.9%, 4/05/2032 | 3,078,000 | 2,782,408 | ||
Corebridge Financial, Inc., 5.75%, 1/15/2034 | 1,237,000 | 1,264,418 | ||
Metropolitan Life Global Funding I, 3.3%, 3/21/2029 (n) | 4,200,000 | 3,895,317 | ||
$10,096,285 | ||||
Insurance - Health – 0.1% | ||||
Humana, Inc., 5.875%, 3/01/2033 | $ | 1,227,000 | $ 1,307,114 | |
Insurance - Property & Casualty – 0.4% | ||||
Aon Corp., 4.5%, 12/15/2028 | $ | 1,979,000 | $ 1,954,712 | |
Aon Corp., 3.75%, 5/02/2029 | 1,893,000 | 1,810,774 | ||
Brown & Brown, Inc., 4.2%, 3/17/2032 | 2,124,000 | 1,937,190 | ||
Fairfax Financial Holdings Ltd., 5.625%, 8/16/2032 | 3,006,000 | 3,003,083 | ||
Liberty Mutual Group, Inc., 3.951%, 10/15/2050 (n) | 1,087,000 | 821,502 | ||
$9,527,261 | ||||
International Market Quasi-Sovereign – 0.0% | ||||
Electricite de France S.A., 6.9%, 5/23/2053 (n) | $ | 629,000 | $ 711,343 | |
Machinery & Tools – 0.3% | ||||
Ashtead Capital, Inc., 5.5%, 8/11/2032 (n) | $ | 3,963,000 | $ 3,914,749 | |
CNH Industrial Capital LLC, 4.2%, 1/15/2024 | 1,679,000 | 1,677,707 | ||
$5,592,456 | ||||
Major Banks – 2.3% | ||||
Bank of America Corp., 3.5%, 4/19/2026 | $ | 1,361,000 | $ 1,324,347 | |
Bank of America Corp., 2.572% to 10/20/2031, FLR (SOFR - 1 day + 1.21%) to 10/20/2032 | 3,452,000 | 2,861,956 | ||
Barclays PLC, 2.894% to 11/24/2031, FLR (CMT - 1yr. + 1.3%) to 11/24/2032 | 877,000 | 718,772 | ||
Barclays PLC, 7.437% to 11/02/2032, FLR (CMT - 1yr. + 3.5%) to 11/02/2033 | 2,666,000 | 2,985,184 | ||
Capital One Financial Corp., 3.75%, 3/09/2027 | 1,728,000 | 1,649,910 | ||
Capital One Financial Corp., 3.273% to 3/01/2029, FLR (SOFR - 1 day + 1.79%) to 3/01/2030 | 4,532,000 | 4,047,542 | ||
Deutsche Bank AG, 7.146% to 7/13/2026, FLR (SOFR - 1 day + 2.52%) to 7/13/2027 | 838,000 | 869,830 | ||
Deutsche Bank AG, 2.311% to 11/16/2026, FLR (SOFR - 1 day + 1.219%) to 11/16/2027 | 880,000 | 804,664 | ||
Deutsche Bank AG, 6.72% to 1/18/2028, FLR (SOFR - 1 day + 3.18%) to 1/18/2029 | 2,180,000 | 2,282,910 | ||
Goldman Sachs Group, Inc., 2.6%, 2/07/2030 | 2,258,000 | 1,984,198 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Major Banks – continued | ||||
Goldman Sachs Group, Inc., 2.383% to 7/21/2031, FLR (SOFR - 1 day + 1.248%) to 7/21/2032 | $ | 2,831,000 | $ 2,326,024 | |
HSBC Holdings PLC, 4.7% to 9/09/2031, FLR (CMT - 1yr. + 3.25%) to 9/09/2169 | 922,000 | 750,918 | ||
HSBC Holdings PLC, 4% to 9/09/2026, FLR (CMT - 1yr. + 3.222%) to 9/09/2170 | 442,000 | 405,547 | ||
JPMorgan Chase & Co., 2.956% to 5/13/2030, FLR (SOFR - 1 day + 2.515%) to 5/13/2031 | 476,000 | 418,296 | ||
JPMorgan Chase & Co., 2.545% to 11/08/2031, FLR (SOFR - 1 day + 1.18%) to 11/08/2032 | 4,631,000 | 3,864,006 | ||
JPMorgan Chase & Co., 2.963% to 1/25/2032, FLR (SOFR - 1 day + 1.26%) to 1/25/2033 | 1,781,000 | 1,526,027 | ||
JPMorgan Chase & Co., 3.897% to 1/23/2048, FLR ((SOFR - 3mo. + 0.26161%) + 1.22%) to 1/23/2049 | 938,000 | 777,483 | ||
Mitsubishi UFJ Financial Group, Inc., 2.852% to 1/19/2032, FLR (CMT - 1yr. + 1.1%) to 1/19/2033 | 2,674,000 | 2,290,549 | ||
Morgan Stanley, 2.699% to 1/22/2030, FLR (SOFR - 1 day + 1.143%) to 1/22/2031 | 2,483,000 | 2,170,580 | ||
Morgan Stanley, 2.943% to 1/21/2032, FLR (SOFR - 1 day + 1.29%) to 1/21/2033 | 3,130,000 | 2,662,561 | ||
Sumitomo Mitsui Financial Group, Inc., 2.472%, 1/14/2029 | 5,230,000 | 4,652,702 | ||
UBS Group AG, 2.095% to 2/11/2031, FLR (CMT - 1yr. + 1.0%) to 2/11/2032 (n) | 6,416,000 | 5,117,521 | ||
Wells Fargo & Co., 3.35% to 3/02/2032, FLR (SOFR - 1 day + 1.5%) to 3/02/2033 | 5,150,000 | 4,498,094 | ||
$50,989,621 | ||||
Medical & Health Technology & Services – 0.4% | ||||
Adventist Health System/West, 5.43%, 3/01/2032 | $ | 2,533,000 | $ 2,576,415 | |
Alcon Finance Corp., 2.6%, 5/27/2030 (n) | 302,000 | 261,782 | ||
Cigna Corp., 3.2%, 3/15/2040 | 474,000 | 370,532 | ||
CVS Health Corp., 5.3%, 6/01/2033 | 2,530,000 | 2,596,332 | ||
HCA, Inc., 5.125%, 6/15/2039 | 1,932,000 | 1,841,017 | ||
Laboratory Corp. of America Holdings, 4.7%, 2/01/2045 | 980,000 | 903,107 | ||
Northwell Healthcare, Inc., 3.979%, 11/01/2046 | 153,000 | 123,625 | ||
Northwell Healthcare, Inc., 4.26%, 11/01/2047 | 1,205,000 | 1,020,348 | ||
$9,693,158 | ||||
Medical Equipment – 0.1% | ||||
Boston Scientific Corp., 2.65%, 6/01/2030 | $ | 1,590,000 | $ 1,419,699 | |
Metals & Mining – 0.4% | ||||
Anglo American Capital PLC, 3.875%, 3/16/2029 (n) | $ | 496,000 | $ 465,210 | |
Anglo American Capital PLC, 5.625%, 4/01/2030 (n) | 1,394,000 | 1,414,888 | ||
Anglo American Capital PLC, 2.625%, 9/10/2030 (n) | 4,564,000 | 3,882,502 | ||
Glencore Funding LLC, 2.5%, 9/01/2030 (n) | 1,695,000 | 1,454,239 | ||
Glencore Funding LLC, 2.85%, 4/27/2031 (n) | 709,000 | 611,371 | ||
$7,828,210 | ||||
Midstream – 0.3% | ||||
Kinder Morgan Energy Partners LP, 4.15%, 2/01/2024 | $ | 1,030,000 | $ 1,028,417 | |
Plains All American Pipeline LP, 3.8%, 9/15/2030 | 1,881,000 | 1,730,883 | ||
Sabine Pass Liquefaction LLC, 4.5%, 5/15/2030 | 512,000 | 500,360 | ||
Spectra Energy Partners LP, 3.375%, 10/15/2026 | 828,000 | 797,138 | ||
Targa Resources Corp., 4.2%, 2/01/2033 | 746,000 | 685,897 | ||
Targa Resources Corp., 6.125%, 3/15/2033 | 2,281,000 | 2,401,524 | ||
$7,144,219 | ||||
Mortgage-Backed – 13.0% | ||||
Fannie Mae, 5%, 3/25/2025 - 3/01/2041 | $ | 1,515,482 | $ 1,537,407 | |
Fannie Mae, 3%, 11/01/2028 - 9/01/2046 | 2,674,179 | 2,532,789 | ||
Fannie Mae, 6.5%, 6/01/2031 - 7/01/2037 | 566,593 | 591,636 | ||
Fannie Mae, 2.5%, 11/01/2031 | 52,848 | 49,831 | ||
Fannie Mae, 5.5%, 2/01/2033 - 4/01/2040 | 3,501,302 | 3,599,488 | ||
Fannie Mae, 3%, 2/25/2033 (i) | 250,549 | 20,782 | ||
Fannie Mae, 4.5%, 8/01/2033 - 6/01/2044 | 3,468,249 | 3,463,025 | ||
Fannie Mae, 6%, 1/01/2034 - 7/01/2037 | 2,073,231 | 2,154,179 | ||
Fannie Mae, 3.5%, 4/01/2038 - 7/01/2046 | 9,303,426 | 8,740,121 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Mortgage-Backed – continued | ||||
Fannie Mae, 3.25%, 5/25/2040 | $ | 72,299 | $ 66,950 | |
Fannie Mae, 4%, 9/01/2040 - 6/01/2047 | 6,447,746 | 6,268,203 | ||
Fannie Mae, 2%, 5/25/2044 - 4/25/2046 | 191,697 | 175,385 | ||
Fannie Mae, 4%, 7/25/2046 (i) | 276,646 | 51,592 | ||
Fannie Mae, UMBS, 5.5%, 10/01/2025 - 11/01/2053 | 8,619,529 | 8,662,629 | ||
Fannie Mae, UMBS, 2%, 10/01/2036 - 3/01/2052 | 30,827,834 | 26,088,549 | ||
Fannie Mae, UMBS, 2.5%, 11/01/2036 - 6/01/2052 | 36,516,626 | 31,457,003 | ||
Fannie Mae, UMBS, 5%, 10/01/2037 - 5/01/2053 | 3,519,707 | 3,485,375 | ||
Fannie Mae, UMBS, 4.5%, 4/01/2038 - 10/01/2052 | 3,731,508 | 3,641,688 | ||
Fannie Mae, UMBS, 1.5%, 2/01/2042 - 4/01/2052 | 2,702,713 | 2,115,844 | ||
Fannie Mae, UMBS, 3%, 6/01/2051 - 8/01/2052 | 14,888,566 | 13,205,484 | ||
Fannie Mae, UMBS, 3.5%, 5/01/2052 - 4/01/2053 | 3,352,595 | 3,077,597 | ||
Fannie Mae, UMBS, 6%, 12/01/2052 - 2/01/2053 | 881,697 | 912,065 | ||
Freddie Mac, 0.904%, 4/25/2024 (i) | 3,071,672 | 3,866 | ||
Freddie Mac, 0.51%, 7/25/2024 (i) | 14,179,000 | 40,202 | ||
Freddie Mac, 0.602%, 7/25/2024 (i) | 3,476,018 | 6,839 | ||
Freddie Mac, 4.5%, 8/01/2024 - 5/01/2042 | 569,577 | 569,618 | ||
Freddie Mac, 0.39%, 8/25/2024 (i) | 15,246,000 | 47,144 | ||
Freddie Mac, 0.46%, 8/25/2024 (i) | 21,622,405 | 52,504 | ||
Freddie Mac, 3.064%, 8/25/2024 | 673,607 | 663,207 | ||
Freddie Mac, 0.339%, 10/25/2024 (i) | 17,702,183 | 28,674 | ||
Freddie Mac, 0.275%, 11/25/2024 (i) | 15,385,000 | 42,056 | ||
Freddie Mac, 2.67%, 12/25/2024 | 1,261,000 | 1,232,725 | ||
Freddie Mac, 0.639%, 6/25/2027 (i) | 13,682,000 | 300,506 | ||
Freddie Mac, 0.745%, 6/25/2027 (i) | 4,538,339 | 95,423 | ||
Freddie Mac, 0.57%, 7/25/2027 (i) | 11,646,139 | 197,728 | ||
Freddie Mac, 0.327%, 8/25/2027 - 1/25/2031 (i) | 14,966,321 | 210,559 | ||
Freddie Mac, 0.418%, 8/25/2027 (i) | 6,384,435 | 84,610 | ||
Freddie Mac, 0.279%, 9/25/2027 (i) | 10,419,000 | 107,205 | ||
Freddie Mac, 0.195%, 11/25/2027 (i) | 16,290,000 | 127,422 | ||
Freddie Mac, 0.284%, 11/25/2027 (i) | 11,356,560 | 104,382 | ||
Freddie Mac, 0.324%, 11/25/2027 (i) | 10,105,925 | 109,915 | ||
Freddie Mac, 0.247%, 12/25/2027 (i) | 10,109,000 | 96,646 | ||
Freddie Mac, 0.289%, 12/25/2027 (i) | 11,210,000 | 126,292 | ||
Freddie Mac, 0.365%, 12/25/2027 (i) | 17,242,552 | 223,351 | ||
Freddie Mac, 1.09%, 7/25/2029 (i) | 824,628 | 40,719 | ||
Freddie Mac, 1.142%, 8/25/2029 (i) | 5,169,489 | 269,379 | ||
Freddie Mac, 1.799%, 4/25/2030 (i) | 900,000 | 86,080 | ||
Freddie Mac, 1.868%, 4/25/2030 (i) | 2,701,417 | 260,144 | ||
Freddie Mac, 1.665%, 5/25/2030 (i) | 1,301,002 | 115,952 | ||
Freddie Mac, 1.797%, 5/25/2030 (i) | 3,334,078 | 315,014 | ||
Freddie Mac, 1.341%, 6/25/2030 (i) | 1,327,631 | 96,606 | ||
Freddie Mac, 1.599%, 8/25/2030 (i) | 1,191,673 | 105,289 | ||
Freddie Mac, 1.169%, 9/25/2030 (i) | 775,587 | 50,715 | ||
Freddie Mac, 1.08%, 11/25/2030 (i) | 1,356,411 | 84,507 | ||
Freddie Mac, 0.78%, 1/25/2031 (i) | 2,233,850 | 102,705 | ||
Freddie Mac, 0.935%, 1/25/2031 (i) | 1,493,151 | 81,445 | ||
Freddie Mac, 0.514%, 3/25/2031 (i) | 4,281,755 | 124,614 | ||
Freddie Mac, 0.732%, 3/25/2031 (i) | 1,837,683 | 81,981 | ||
Freddie Mac, 1.216%, 5/25/2031 (i) | 822,353 | 60,172 | ||
Freddie Mac, 0.937%, 7/25/2031 (i) | 1,237,840 | 72,268 | ||
Freddie Mac, 0.508%, 8/25/2031 (i) | 1,664,744 | 52,300 | ||
Freddie Mac, 0.536%, 9/25/2031 (i) | 5,442,448 | 182,251 | ||
Freddie Mac, 0.855%, 9/25/2031 (i) | 1,567,181 | 83,173 | ||
Freddie Mac, 0.349%, 11/25/2031 (i) | 8,030,040 | 187,337 | ||
Freddie Mac, 0.498%, 12/25/2031 (i) | 7,179,988 | 231,046 | ||
Freddie Mac, 0.568%, 12/25/2031 (i) | 12,162,189 | 438,699 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Mortgage-Backed – continued | ||||
Freddie Mac, 0.294%, 11/25/2032 (i) | $ | 8,299,181 | $ 153,619 | |
Freddie Mac, 5%, 9/01/2033 - 1/15/2040 | 817,644 | 830,582 | ||
Freddie Mac, 5.5%, 12/01/2033 - 2/01/2037 | 577,189 | 594,476 | ||
Freddie Mac, 6%, 4/01/2034 - 6/01/2037 | 745,511 | 777,251 | ||
Freddie Mac, 6.5%, 5/01/2034 - 7/01/2037 | 338,903 | 354,587 | ||
Freddie Mac, 5.5%, 2/15/2036 (i) | 50,821 | 9,107 | ||
Freddie Mac, 4%, 8/01/2037 - 4/01/2044 | 2,108,707 | 2,054,056 | ||
Freddie Mac, 3.5%, 11/01/2037 - 10/25/2058 | 6,251,026 | 5,877,450 | ||
Freddie Mac, 3%, 1/01/2038 - 2/25/2059 | 8,073,683 | 7,389,295 | ||
Freddie Mac, 4.5%, 12/15/2040 (i) | 29,305 | 2,357 | ||
Freddie Mac, 4%, 8/15/2044 (i) | 52,616 | 5,424 | ||
Freddie Mac, 3.25%, 11/25/2061 | 589,995 | 511,212 | ||
Freddie Mac, UMBS, 2%, 12/01/2031 - 4/01/2052 | 28,665,468 | 23,968,274 | ||
Freddie Mac, UMBS, 6.5%, 10/01/2034 | 20,536 | 21,260 | ||
Freddie Mac, UMBS, 5%, 10/01/2035 - 8/01/2053 | 1,977,999 | 1,960,954 | ||
Freddie Mac, UMBS, 6%, 1/01/2036 - 9/01/2053 | 238,540 | 243,329 | ||
Freddie Mac, UMBS, 3%, 4/01/2037 - 2/01/2053 | 5,118,602 | 4,538,646 | ||
Freddie Mac, UMBS, 4.5%, 6/01/2038 - 10/01/2052 | 3,842,772 | 3,746,857 | ||
Freddie Mac, UMBS, 3.5%, 12/01/2046 - 5/01/2052 | 2,198,810 | 2,035,280 | ||
Freddie Mac, UMBS, 4%, 8/01/2047 - 10/01/2052 | 5,798,652 | 5,497,735 | ||
Freddie Mac, UMBS, 2.5%, 4/01/2048 - 9/01/2052 | 17,034,268 | 14,511,748 | ||
Freddie Mac, UMBS, 1.5%, 3/01/2051 - 2/01/2052 | 3,388,533 | 2,643,405 | ||
Freddie Mac, UMBS, 5.5%, 7/01/2052 - 9/01/2053 | 1,686,280 | 1,702,212 | ||
Ginnie Mae, 6%, 9/15/2032 - 1/15/2038 | 877,602 | 911,716 | ||
Ginnie Mae, 5.5%, 5/15/2033 - 6/20/2053 | 6,168,123 | 6,216,678 | ||
Ginnie Mae, 4.5%, 7/20/2033 - 12/20/2052 | 8,193,538 | 8,021,992 | ||
Ginnie Mae, 5%, 7/20/2033 - 9/20/2053 | 8,686,562 | 8,627,260 | ||
Ginnie Mae, 4%, 1/20/2041 - 10/20/2052 | 5,053,381 | 4,853,860 | ||
Ginnie Mae, 3.5%, 12/15/2041 - 10/20/2052 | 6,459,276 | 6,061,146 | ||
Ginnie Mae, 3%, 4/20/2045 - 10/20/2052 | 8,243,711 | 7,520,270 | ||
Ginnie Mae, 2.5%, 8/20/2051 - 4/20/2052 | 15,163,993 | 13,258,012 | ||
Ginnie Mae, 2%, 1/20/2052 - 4/20/2052 | 10,665,800 | 9,023,495 | ||
Ginnie Mae, 0.584%, 2/16/2059 (i) | 2,341,554 | 71,742 | ||
Ginnie Mae, TBA, 3%, 1/15/2054 | 2,025,000 | 1,833,253 | ||
Ginnie Mae, TBA, 6%, 1/15/2054 | 1,500,000 | 1,525,137 | ||
Ginnie Mae, TBA, 6.5%, 1/15/2054 | 2,000,000 | 2,047,266 | ||
UMBS, TBA, 2%, 1/18/2039 - 1/25/2054 | 1,875,000 | 1,603,524 | ||
UMBS, TBA, 2.5%, 1/18/2039 - 1/16/2054 | 2,734,977 | 2,472,825 | ||
UMBS, TBA, 5%, 1/25/2039 | 350,000 | 352,078 | ||
$283,320,262 | ||||
Municipals – 0.4% | ||||
New Jersey Turnpike Authority Rev., Taxable (Build America Bonds), “F”, 7.414%, 1/01/2040 | $ | 3,685,000 | $ 4,591,416 | |
Rhode Island Student Loan Authority Education Loan Rev., Taxable, 6.081%, 12/01/2042 | 2,820,000 | 2,889,420 | ||
State of Florida, Taxable, “A”, 2.154%, 7/01/2030 | 1,032,000 | 880,295 | ||
$8,361,131 | ||||
Natural Gas - Distribution – 0.0% | ||||
NiSource, Inc., 5.65%, 2/01/2045 | $ | 414,000 | $ 415,765 | |
Natural Gas - Pipeline – 0.0% | ||||
APA Infrastructure Ltd., 4.25%, 7/15/2027 (n) | $ | 253,000 | $ 245,438 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Network & Telecom – 0.1% | ||||
Verizon Communications, Inc., 3.15%, 3/22/2030 | $ | 1,053,000 | $ 962,453 | |
Verizon Communications, Inc., 4.812%, 3/15/2039 | 1,877,000 | 1,814,720 | ||
$2,777,173 | ||||
Oils – 0.2% | ||||
Phillips 66 Co., 2.15%, 12/15/2030 | $ | 2,934,000 | $ 2,470,785 | |
Valero Energy Corp., 6.625%, 6/15/2037 | 2,124,000 | 2,328,235 | ||
$4,799,020 | ||||
Other Banks & Diversified Financials – 0.4% | ||||
Macquarie Group Ltd., 4.442% to 6/21/2032, FLR (SOFR - 1 day + 2.405%) to 6/21/2033 (n) | $ | 5,881,000 | $ 5,365,999 | |
Northern Trust Corp., 6.125%, 11/02/2032 | 2,959,000 | 3,177,475 | ||
$8,543,474 | ||||
Pollution Control – 0.3% | ||||
Republic Services, Inc., 1.45%, 2/15/2031 | $ | 851,000 | $ 690,334 | |
Waste Management, Inc., 4.875%, 2/15/2034 | 5,777,000 | 5,892,785 | ||
$6,583,119 | ||||
Real Estate - Office – 0.1% | ||||
Boston Properties LP, REIT, 2.55%, 4/01/2032 | $ | 1,316,000 | $ 1,047,628 | |
Real Estate - Other – 0.2% | ||||
Public Storage Operating, REIT, 5.1%, 8/01/2033 | $ | 4,289,000 | $ 4,439,973 | |
Real Estate - Retail – 0.1% | ||||
Brixmor Operating Partnership LP, REIT, 4.125%, 5/15/2029 | $ | 172,000 | $ 163,684 | |
Brixmor Operating Partnership LP, REIT, 4.05%, 7/01/2030 | 1,681,000 | 1,570,813 | ||
Realty Income Corp., REIT, 3.25%, 1/15/2031 | 485,000 | 440,653 | ||
$2,175,150 | ||||
Retailers – 0.1% | ||||
Alimentation Couche-Tard, Inc., 3.439%, 5/13/2041 (n) | $ | 2,106,000 | $ 1,585,454 | |
Specialty Stores – 0.1% | ||||
Genuine Parts Co., 2.75%, 2/01/2032 | $ | 3,528,000 | $ 2,947,939 | |
Telecommunications - Wireless – 0.4% | ||||
Crown Castle, Inc., REIT, 3.65%, 9/01/2027 | $ | 2,565,000 | $ 2,438,260 | |
Rogers Communications, Inc., 3.8%, 3/15/2032 | 5,197,000 | 4,782,400 | ||
T-Mobile USA, Inc., 2.05%, 2/15/2028 | 1,892,000 | 1,707,132 | ||
Vodafone Group PLC, 5.625%, 2/10/2053 | 750,000 | 756,235 | ||
$9,684,027 | ||||
Tobacco – 0.4% | ||||
B.A.T. International Finance PLC, 4.448%, 3/16/2028 | $ | 4,780,000 | $ 4,700,950 | |
Philip Morris International, Inc., 5.125%, 11/17/2027 | 869,000 | 884,482 | ||
Philip Morris International, Inc., 5.625%, 11/17/2029 | 374,000 | 392,179 | ||
Philip Morris International, Inc., 5.125%, 2/15/2030 | 1,404,000 | 1,426,913 | ||
Philip Morris International, Inc., 5.75%, 11/17/2032 | 1,653,000 | 1,734,759 | ||
$9,139,283 | ||||
Transportation - Services – 0.0% | ||||
ERAC USA Finance LLC, 7%, 10/15/2037 (n) | $ | 757,000 | $ 884,624 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
U.S. Government Agencies and Equivalents – 0.0% | ||||
Small Business Administration, 4.77%, 4/01/2024 | $ | 6,332 | $ 6,302 | |
Small Business Administration, 5.18%, 5/01/2024 | 8,356 | 8,314 | ||
Small Business Administration, 5.52%, 6/01/2024 | 402 | 401 | ||
Small Business Administration, 4.99%, 9/01/2024 | 16,776 | 16,654 | ||
Small Business Administration, 4.95%, 3/01/2025 | 1,035 | 1,032 | ||
Small Business Administration, 5.11%, 8/01/2025 | 105,019 | 104,052 | ||
$136,755 | ||||
U.S. Treasury Obligations – 7.8% | ||||
U.S. Treasury Bonds, 1.75%, 8/15/2041 | $ | 4,700,000 | $ 3,268,703 | |
U.S. Treasury Bonds, 2.375%, 2/15/2042 | 6,600,000 | 5,063,953 | ||
U.S. Treasury Bonds, 4%, 11/15/2042 | 6,000,000 | 5,831,016 | ||
U.S. Treasury Bonds, 2.875%, 5/15/2043 | 9,096,000 | 7,466,892 | ||
U.S. Treasury Bonds, 2.5%, 2/15/2045 | 9,797,000 | 7,418,549 | ||
U.S. Treasury Bonds, 3%, 11/15/2045 | 3,638,000 | 2,993,108 | ||
U.S. Treasury Bonds, 2.875%, 5/15/2049 | 900,000 | 715,148 | ||
U.S. Treasury Bonds, 2.375%, 11/15/2049 (f) | 43,390,000 | 31,132,325 | ||
U.S. Treasury Bonds, 2.25%, 2/15/2052 | 7,800,000 | 5,406,984 | ||
U.S. Treasury Bonds, 4%, 11/15/2052 | 2,700,000 | 2,663,930 | ||
U.S. Treasury Bonds, 4.125%, 8/15/2053 | 5,100,000 | 5,154,984 | ||
U.S. Treasury Notes, 4.625%, 6/30/2025 | 10,400,000 | 10,424,781 | ||
U.S. Treasury Notes, 4.75%, 7/31/2025 | 15,900,000 | 15,972,047 | ||
U.S. Treasury Notes, 5%, 8/31/2025 | 7,200,000 | 7,266,375 | ||
U.S. Treasury Notes, 0.375%, 11/30/2025 | 33,750,000 | 31,341,357 | ||
U.S. Treasury Notes, 2.5%, 3/31/2027 | 29,500,000 | 28,194,395 | ||
$170,314,547 | ||||
Utilities - Electric Power – 0.9% | ||||
American Electric Power Co., Inc., 5.95%, 11/01/2032 | $ | 1,273,000 | $ 1,358,711 | |
American Transmission Systems, Inc., 2.65%, 1/15/2032 (n) | 250,000 | 211,510 | ||
Duke Energy Carolinas LLC, 4.95%, 1/15/2033 | 3,995,000 | 4,068,988 | ||
Duke Energy Corp., 4.5%, 8/15/2032 | 3,023,000 | 2,926,115 | ||
Enel Finance International N.V., 6.8%, 10/14/2025 (n) | 926,000 | 949,281 | ||
Enel Finance International N.V., 4.75%, 5/25/2047 (n) | 392,000 | 341,010 | ||
Exelon Corp., 4.05%, 4/15/2030 | 1,632,000 | 1,556,873 | ||
Georgia Power Co., 3.7%, 1/30/2050 | 147,000 | 116,044 | ||
Jersey Central Power & Light Co., 4.3%, 1/15/2026 (n) | 1,333,000 | 1,303,902 | ||
Jersey Central Power & Light Co., 2.75%, 3/01/2032 (n) | 924,000 | 779,839 | ||
Oncor Electric Delivery Co. LLC, 5.75%, 3/15/2029 | 2,121,000 | 2,238,585 | ||
Pacific Gas & Electric Co., 2.1%, 8/01/2027 | 480,000 | 432,592 | ||
Pacific Gas & Electric Co., 3%, 6/15/2028 | 1,410,000 | 1,285,009 | ||
Pacific Gas & Electric Co., 2.5%, 2/01/2031 | 1,738,000 | 1,433,660 | ||
Pacific Gas & Electric Co., 3.3%, 8/01/2040 | 926,000 | 677,612 | ||
Xcel Energy, Inc., 3.4%, 6/01/2030 | 968,000 | 895,154 | ||
$20,574,885 | ||||
Utilities - Gas – 0.0% | ||||
East Ohio Gas Co., 2%, 6/15/2030 (n) | $ | 1,135,000 | $ 943,404 | |
Total Bonds (Identified Cost, $923,533,906) | $865,934,209 | |||
Preferred Stocks – 0.8% | ||||
Computer Software - Systems – 0.3% | ||||
Samsung Electronics Co. Ltd. | 114,746 | $ 5,533,260 |
Issuer | Shares/Par | Value ($) | ||
Preferred Stocks – continued | ||||
Consumer Products – 0.5% | ||||
Henkel AG & Co. KGaA | 140,252 | $ 11,281,003 | ||
Total Preferred Stocks (Identified Cost, $15,975,433) | $16,814,263 | |||
Investment Companies (h) – 1.2% | ||||
Money Market Funds – 1.2% | ||||
MFS Institutional Money Market Portfolio, 5.42% (v) (Identified Cost, $25,145,020) | 25,145,434 | $ 25,150,462 | ||
Other Assets, Less Liabilities – (0.1)% | (2,269,363) | |||
Net Assets – 100.0% | $2,184,076,368 |
(a) | Non-income producing security. |
(d) | In default. |
(f) | All or a portion of the security has been segregated as collateral for open futures contracts. |
(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 $25,150,462 and $2,161,195,269, 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 $155,205,278, representing 7.1% of net assets. |
(q) | Interest received was less than stated coupon rate. |
(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 |
ReadyCap Commercial Mortgage Trust, 2021-FL5, “A”, FLR, 6.47% ((SOFR - 1mo. + 0.11448%) + 1%), 4/25/2038 | 3/19/2021 | $1,052,365 | $1,042,303 |
ReadyCap Commercial Mortgage Trust, 2021-FL7, “B”, FLR, 7.27% ((SOFR - 1mo. + 0.11448%) + 1.8%), 11/25/2036 | 11/12/2021 | 1,130,000 | 1,101,199 |
Total Restricted Securities | $2,143,502 | ||
% of Net assets | 0.1% |
The following abbreviations are used in this report and are defined: | |
ADR | American Depositary Receipt |
CLO | Collateralized Loan Obligation |
CMT | Constant Maturity Treasury |
FGIC | Financial Guaranty Insurance Co. |
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. |
REIT | Real Estate Investment Trust |
SOFR | Secured Overnight Financing Rate |
TBA | To Be Announced |
UMBS | Uniform Mortgage-Backed Security |
Derivative Contracts at 12/31/23 | ||||||
Futures Contracts | ||||||
Description | Long/ Short | Currency | Contracts | Notional Amount | Expiration Date | Value/Unrealized Appreciation (Depreciation) |
Asset Derivatives | ||||||
Interest Rate Futures | ||||||
U.S. Treasury Note 2 yr | Long | USD | 117 | $24,091,945 | March – 2024 | $247,175 |
U.S. Treasury Note 5 yr | Long | USD | 617 | 67,113,211 | March – 2024 | 1,541,867 |
U.S. Treasury Ultra Bond 30 yr | Long | USD | 154 | 20,573,438 | March – 2024 | 1,894,008 |
$3,683,050 | ||||||
Liability Derivatives | ||||||
Interest Rate Futures | ||||||
U.S. Treasury Ultra Note 10 yr | Short | USD | 199 | $23,485,109 | March – 2024 | $(1,051,832) |
Financial Statements | Statement of Assets and Liabilities |
At 12/31/23Assets | |
Investments in unaffiliated issuers, at value (identified cost, $1,700,168,785) | $2,161,195,269 |
Investments in affiliated issuers, at value (identified cost, $25,145,020) | 25,150,462 |
Receivables for | |
Net daily variation margin on open futures contracts | 4,534 |
Fund shares sold | 299,769 |
Interest and dividends | 8,888,543 |
Other assets | 7,486 |
Total assets | $2,195,546,063 |
Liabilities | |
Payables for | |
TBA purchase commitments | $9,710,672 |
Fund shares reacquired | 1,501,117 |
Payable to affiliates | |
Investment adviser | 3,952 |
Administrative services fee | 3,016 |
Shareholder servicing costs | 379 |
Distribution and/or service fees | 32,482 |
Payable for independent Trustees' compensation | 12 |
Accrued expenses and other liabilities | 218,065 |
Total liabilities | $11,469,695 |
Net assets | $2,184,076,368 |
Net assets consist of | |
Paid-in capital | $1,582,411,740 |
Total distributable earnings (loss) | 601,664,628 |
Net assets | $2,184,076,368 |
Shares of beneficial interest outstanding | 95,203,092 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $1,000,723,151 | 43,020,059 | $23.26 |
Service Class | 1,183,353,217 | 52,183,033 | 22.68 |
Financial Statements | Statement of Operations |
Year ended 12/31/23 | |
Net investment income (loss) | |
Income | |
Interest | $34,538,180 |
Dividends | 30,208,764 |
Dividends from affiliated issuers | 1,354,085 |
Other | 124,092 |
Income on securities loaned | 38,881 |
Foreign taxes withheld | (426,016) |
Total investment income | $65,837,986 |
Expenses | |
Management fee | $14,457,014 |
Distribution and/or service fees | 2,911,505 |
Shareholder servicing costs | 13,662 |
Administrative services fee | 320,017 |
Independent Trustees' compensation | 37,181 |
Custodian fee | 111,422 |
Shareholder communications | 43,167 |
Audit and tax fees | 84,749 |
Legal fees | 11,708 |
Miscellaneous | 85,730 |
Total expenses | $18,076,155 |
Reduction of expenses by investment adviser | (2,039,935) |
Net expenses | $16,036,220 |
Net investment income (loss) | $49,801,766 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $105,807,421 |
Affiliated issuers | 1,000 |
Futures contracts | (3,365,123) |
Foreign currency | 2,372 |
Net realized gain (loss) | $102,445,670 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $54,701,320 |
Affiliated issuers | (2,573) |
Futures contracts | 3,106,931 |
Translation of assets and liabilities in foreign currencies | 34,581 |
Net unrealized gain (loss) | $57,840,259 |
Net realized and unrealized gain (loss) | $160,285,929 |
Change in net assets from operations | $210,087,695 |
Financial Statements | Statements of Changes in Net Assets |
Year ended | ||
12/31/23 | 12/31/22 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $49,801,766 | $39,724,474 |
Net realized gain (loss) | 102,445,670 | 92,004,343 |
Net unrealized gain (loss) | 57,840,259 | (389,683,653) |
Change in net assets from operations | $210,087,695 | $(257,954,836) |
Total distributions to shareholders | $(133,623,219) | $(236,287,143) |
Change in net assets from fund share transactions | $(74,083,306) | $(5,860,762) |
Total change in net assets | $2,381,170 | $(500,102,741) |
Net assets | ||
At beginning of period | 2,181,695,198 | 2,681,797,939 |
At end of period | $2,184,076,368 | $2,181,695,198 |
Financial Statements | Financial Highlights |
Initial Class | Year ended | ||||
12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | |
Net asset value, beginning of period | $22.49 | $27.78 | $26.02 | $24.90 | $21.78 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.55 | $0.45 | $0.39 | $0.47 | $0.52 |
Net realized and unrealized gain (loss) | 1.69 | (3.10) | 3.24 | 1.88 | 3.83 |
Total from investment operations | $2.24 | $(2.65) | $3.63 | $2.35 | $4.35 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.48) | $(0.44) | $(0.51) | $(0.57) | $(0.58) |
From net realized gain | (0.99) | (2.20) | (1.36) | (0.66) | (0.65) |
Total distributions declared to shareholders | $(1.47) | $(2.64) | $(1.87) | $(1.23) | $(1.23) |
Net asset value, end of period (x) | $23.26 | $22.49 | $27.78 | $26.02 | $24.90 |
Total return (%) (k)(r)(s)(x) | 10.44 | (9.58) | 14.12 | 9.81 | 20.38 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.71 | 0.71 | 0.70 | 0.71 | 0.70 |
Expenses after expense reductions | 0.61 | 0.61 | 0.61 | 0.61 | 0.62 |
Net investment income (loss) | 2.45 | 1.84 | 1.43 | 1.95 | 2.18 |
Portfolio turnover | 38 | 67 | 98 | 84 | 42 |
Net assets at end of period (000 omitted) | $1,000,723 | $1,001,860 | $1,274,331 | $1,219,438 | $1,223,166 |
Service Class | Year ended | ||||
12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | |
Net asset value, beginning of period | $21.95 | $27.18 | $25.50 | $24.43 | $21.38 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.49 | $0.38 | $0.32 | $0.40 | $0.45 |
Net realized and unrealized gain (loss) | 1.65 | (3.04) | 3.17 | 1.83 | 3.76 |
Total from investment operations | $2.14 | $(2.66) | $3.49 | $2.23 | $4.21 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.42) | $(0.37) | $(0.45) | $(0.50) | $(0.51) |
From net realized gain | (0.99) | (2.20) | (1.36) | (0.66) | (0.65) |
Total distributions declared to shareholders | $(1.41) | $(2.57) | $(1.81) | $(1.16) | $(1.16) |
Net asset value, end of period (x) | $22.68 | $21.95 | $27.18 | $25.50 | $24.43 |
Total return (%) (k)(r)(s)(x) | 10.22 | (9.84) | 13.84 | 9.52 | 20.12 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.96 | 0.96 | 0.95 | 0.96 | 0.95 |
Expenses after expense reductions | 0.86 | 0.86 | 0.86 | 0.86 | 0.87 |
Net investment income (loss) | 2.20 | 1.60 | 1.17 | 1.71 | 1.93 |
Portfolio turnover | 38 | 67 | 98 | 84 | 42 |
Net assets at end of period (000 omitted) | $1,183,353 | $1,179,835 | $1,407,467 | $1,319,320 | $1,323,813 |
(d) | Per share data is based on average shares outstanding. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(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 |
Equity Securities: | ||||
United States | $1,216,267,223 | $— | $— | $1,216,267,223 |
Germany | 21,592,706 | — | — | 21,592,706 |
United Kingdom | 19,749,226 | — | — | 19,749,226 |
Canada | 12,216,617 | — | — | 12,216,617 |
Switzerland | 11,378,604 | — | — | 11,378,604 |
Taiwan | 8,523,424 | — | — | 8,523,424 |
South Korea | — | 5,533,260 | — | 5,533,260 |
U.S. Treasury Bonds & U.S. Government Agencies & Equivalents | — | 170,451,302 | — | 170,451,302 |
Non - U.S. Sovereign Debt | — | 711,343 | — | 711,343 |
Municipal Bonds | — | 8,361,131 | — | 8,361,131 |
U.S. Corporate Bonds | — | 191,508,240 | — | 191,508,240 |
Residential Mortgage-Backed Securities | — | 283,406,244 | — | 283,406,244 |
Commercial Mortgage-Backed Securities | — | 43,768,587 | — | 43,768,587 |
Asset-Backed Securities (including CDOs) | — | 88,095,050 | — | 88,095,050 |
Foreign Bonds | — | 79,632,312 | — | 79,632,312 |
Mutual Funds | 25,150,462 | — | — | 25,150,462 |
Total | $1,314,878,262 | $871,467,469 | $— | $2,186,345,731 |
Other Financial Instruments | ||||
Futures Contracts – Assets | $3,683,050 | $— | $— | $3,683,050 |
Futures Contracts – Liabilities | (1,051,832) | — | — | (1,051,832) |
Fair Value (a) | |||
Risk | Derivative Contracts | Asset Derivatives | Liability Derivatives |
Interest Rate | Futures Contracts | $3,683,050 | $(1,051,832) |
Risk | Futures Contracts |
Interest Rate | $(3,365,123) |
Risk | Futures Contracts |
Interest Rate | $3,106,931 |
Year ended 12/31/23 | Year ended 12/31/22 | |
Ordinary income (including any short-term capital gains) | $41,248,649 | $50,184,261 |
Long-term capital gains | 92,374,570 | 186,102,882 |
Total distributions | $133,623,219 | $236,287,143 |
As of 12/31/23 | |
Cost of investments | $1,743,934,064 |
Gross appreciation | 543,024,194 |
Gross depreciation | (97,981,309) |
Net unrealized appreciation (depreciation) | $445,042,885 |
Undistributed ordinary income | 52,307,287 |
Undistributed long-term capital gain | 104,280,554 |
Other temporary differences | 33,902 |
Total distributable earnings (loss) | $601,664,628 |
Year ended 12/31/23 | Year ended 12/31/22 | ||
Initial Class | $61,608,118 | $109,061,121 | |
Service Class | 72,015,101 | 127,226,022 | |
Total | $133,623,219 | $236,287,143 |
Up to $1 billion | 0.70% |
In excess of $1 billion and up to $2.5 billion | 0.65% |
In excess of $2.5 billion and up to $5 billion | 0.55% |
In excess of $5 billion | 0.50% |
Purchases | Sales | |
U.S. Government securities | $525,325,678 | $504,067,133 |
Non-U.S. Government securities | 274,703,951 | 457,266,244 |
Year ended 12/31/23 | Year ended 12/31/22 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 950,911 | $21,602,464 | 1,216,820 | $28,906,952 | |
Service Class | 3,478,173 | 77,777,705 | 3,979,494 | 96,027,646 | |
4,429,084 | $99,380,169 | 5,196,314 | $124,934,598 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | 2,843,014 | $61,608,118 | 4,817,187 | $109,061,121 | |
Service Class | 3,406,580 | 72,015,101 | 5,751,628 | 127,226,022 | |
6,249,594 | $133,623,219 | 10,568,815 | $236,287,143 |
Year ended 12/31/23 | Year ended 12/31/22 | ||||
Shares | Amount | Shares | Amount | ||
Shares reacquired | |||||
Initial Class | (5,328,147) | $(120,472,432) | (7,347,668) | $(180,956,671) | |
Service Class | (8,448,565) | (186,614,262) | (7,768,222) | (186,125,832) | |
(13,776,712) | $(307,086,694) | (15,115,890) | $(367,082,503) | ||
Net change | |||||
Initial Class | (1,534,222) | $(37,261,850) | (1,313,661) | $(42,988,598) | |
Service Class | (1,563,812) | (36,821,456) | 1,962,900 | 37,127,836 | |
(3,098,034) | $(74,083,306) | 649,239 | $(5,860,762) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $23,640,356 | $368,659,684 | $367,148,005 | $1,000 | $(2,573) | $25,150,462 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $1,354,085 | $— |
February 14, 2024
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 TRUSTEE | ||||||||||
Michael W. Roberge (k) (age 57) | 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) | N/A | |||||
INDEPENDENT TRUSTEES | ||||||||||
John P. Kavanaugh (age 69) | Trustee and Chair of Trustees | January 2009 | 136 | Private investor | N/A | |||||
Steven E. Buller (age 72) | Trustee | February 2014 | 136 | Private investor | N/A | |||||
John A. Caroselli (age 69) | Trustee | March 2017 | 136 | Private investor; JC Global Advisors, LLC (management consulting), President (since 2015) | N/A | |||||
Maureen R. Goldfarb (age 68) | Trustee | January 2009 | 136 | Private investor | N/A | |||||
Peter D. Jones (age 68) | Trustee | January 2019 | 136 | Private investor | N/A | |||||
James W. Kilman, Jr. (age 62) | 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) | |||||
Clarence Otis, Jr. (age 67) | Trustee | March 2017 | 136 | Private investor | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director | |||||
Maryanne L. Roepke (age 67) | Trustee | May 2014 | 136 | Private investor | N/A | |||||
Laurie J. Thomsen (age 66) | 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 50) | Assistant Secretary and Assistant Clerk | July 2005 | 136 | Massachusetts Financial Services Company, Senior Vice President and Senior Managing Counsel | ||||
Kino Clark (k) (age 55) | Assistant Treasurer | January 2012 | 136 | Massachusetts Financial Services Company, Vice President |
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 | ||||
John W. Clark, Jr. (k) (age 56) | Assistant Treasurer | April 2017 | 136 | Massachusetts Financial Services Company, Vice President | ||||
David L. DiLorenzo (k) (age 55) | President | July 2005 | 136 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 56) | Secretary and Clerk | April 2017 | 136 | Massachusetts Financial Services Company, Executive Vice President and General Counsel | ||||
Brian E. Langenfeld (k) (age 50) | Assistant Secretary and Assistant Clerk | June 2006 | 136 | Massachusetts Financial Services Company, Vice President and Managing Counsel | ||||
Rosa E. Licea-Mailloux (k) (age 47) | 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) | ||||
Amanda S. Mooradian (k) (age 44) | Assistant Secretary and Assistant Clerk | September 2018 | 136 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 53) | Assistant Secretary and Assistant Clerk | July 2005 | 136 | Massachusetts Financial Services Company, Vice President and Managing Counsel | ||||
Kasey L. Phillips (k) (age 53) | Assistant Treasurer | September 2012 | 136 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 49) | Assistant Secretary and Assistant Clerk | October 2014 | 136 | Massachusetts Financial Services Company, Vice President and Senior Managing Counsel | ||||
William B. Wilson (k) (age 41) | Assistant Secretary and Assistant Clerk | October 2022 | 136 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
James O. Yost (k) (age 63) | 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 Congress Street, Suite 1 Boston, MA 02114-2016 |
Distributor | Independent Registered Public Accounting Firm |
MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618 | Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 |
Portfolio Manager(s) | |
Steven Gorham Alexander Mackey Joshua Marston Johnathan Munko |
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. |
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NextEra Energy, Inc. | 10.8% |
PG&E Corp. | 6.6% |
Dominion Energy, Inc. | 5.6% |
DTE Energy Co. | 4.6% |
Southern Co. | 4.6% |
Sempra Energy | 4.1% |
RWE AG | 4.0% |
Edison International | 3.9% |
EDP Renovaveis S.A. | 3.7% |
PPL Corp. | 3.5% |
Utilities-Electric Power | 81.5% |
Telecommunications - Wireless | 7.4% |
Energy - Renewables | 5.3% |
Natural Gas - Distribution | 2.7% |
Utilities - Water | 1.7% |
United States | 73.1% |
Germany | 5.4% |
Portugal | 5.2% |
United Kingdom | 4.6% |
Spain | 3.9% |
Italy | 2.4% |
France | 1.3% |
Canada | 1.2% |
Denmark | 0.7% |
Other Countries | 2.2% |
(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 (included in Other Countries) includes Cash & Cash Equivalents. |
(b) | Security is not a benchmark constituent. |
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr |
Initial Class | 1/03/1995 | (2.11)% | 8.31% | 6.39% |
Service Class | 5/01/2000 | (2.33)% | 8.05% | 6.13% |
Standard & Poor's 500 Stock Index (f) | 26.29% | 15.69% | 12.03% |
Standard & Poor's 500 Utilities Index (f) | (7.08)% | 7.11% | 8.91% |
(f) | Source: FactSet Research Systems Inc. |
(g) | “Standard & Poor's®” and “S&P®” are registered trademarks of Standard & Poor's Financial Services LLC (“S&P”) and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and sublicensed for certain purposes by MFS. The S&P 500® is a product of S&P Dow Jones Indices LLC, and has been licensed for use by MFS. MFS's product(s) is not sponsored, endorsed, sold, or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates, and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing in such product(s). |
July 1, 2023 through December 31, 2023
Share Class | Annualized Expense Ratio | Beginning Account Value 7/01/23 | Ending Account Value 12/31/23 | Expenses Paid During Period (p) 7/01/23-12/31/23 | |
Initial Class | Actual | 0.77% | $1,000.00 | $987.89 | $3.86 |
Hypothetical (h) | 0.77% | $1,000.00 | $1,021.32 | $3.92 | |
Service Class | Actual | 1.02% | $1,000.00 | $986.97 | $5.11 |
Hypothetical (h) | 1.02% | $1,000.00 | $1,020.06 | $5.19 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 99.1% | ||||
Energy - Renewables – 5.3% | ||||
AES Corp. | 518,396 | $ 9,979,123 | ||
EDP Renovaveis S.A. | 1,983,963 | 40,573,386 | ||
Orsted A/S | 137,952 | 7,646,635 | ||
$58,199,144 | ||||
Natural Gas - Distribution – 2.7% | ||||
Atmos Energy Corp. | 149,102 | $ 17,280,922 | ||
China Resources Gas Group Ltd. | 1,823,100 | 5,976,994 | ||
Southwest Gas Holdings, Inc. | 97,071 | 6,149,448 | ||
$29,407,364 | ||||
Telecommunications - Wireless – 7.4% | ||||
Cellnex Telecom S.A. | 870,322 | $ 34,261,847 | ||
Rogers Communications, Inc., “B” | 284,925 | 13,338,287 | ||
SBA Communications Corp., REIT | 133,820 | 33,948,796 | ||
$81,548,930 | ||||
Telephone Services – 0.5% | ||||
Hellenic Telecommunications Organization S.A. | 411,479 | $ 5,859,855 | ||
Utilities - Electric Power – 81.5% | ||||
Alliant Energy Corp. | 550,885 | $ 28,260,400 | ||
Ameren Corp. | 450,171 | 32,565,370 | ||
American Electric Power Co., Inc. | 363,439 | 29,518,516 | ||
CenterPoint Energy, Inc. | 310,258 | 8,864,071 | ||
CLP Holdings Ltd. | 767,500 | 6,334,811 | ||
Constellation Energy | 283,951 | 33,191,032 | ||
Dominion Energy, Inc. | 1,318,418 | 61,965,646 | ||
DTE Energy Co. | 462,085 | 50,949,492 | ||
E.ON SE | 1,190,112 | 15,962,966 | ||
Edison International | 596,176 | 42,620,622 | ||
Enel S.p.A. | 3,582,989 | 26,620,120 | ||
Energias de Portugal S.A. | 3,272,294 | 16,454,707 | ||
Equatorial Energia S.A. | 756,300 | 5,561,396 | ||
Evergy, Inc. | 355,935 | 18,579,807 | ||
Exelon Corp. | 432,982 | 15,544,056 | ||
Iberdrola S.A. | 646,576 | 8,472,660 | ||
National Grid PLC | 1,500,466 | 20,234,982 | ||
NextEra Energy, Inc. | 1,965,086 | 119,359,324 | ||
PG&E Corp. | 4,024,239 | 72,557,029 | ||
Pinnacle West Capital Corp. | 224,651 | 16,138,928 | ||
Portland General Electric Co. | 359,129 | 15,564,651 | ||
PPL Corp. | 1,433,202 | 38,839,774 | ||
Public Service Enterprise Group, Inc. | 242,547 | 14,831,749 | ||
RWE AG | 962,698 | 43,764,893 | ||
Sempra Energy | 611,195 | 45,674,603 | ||
Southern Co. | 720,816 | 50,543,618 | ||
SSE PLC | 1,124,519 | 26,603,316 | ||
Xcel Energy, Inc. | 542,345 | 33,576,579 | ||
$899,155,118 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Utilities - Water – 1.7% | ||||
United Utilities Group PLC | 320,225 | $ 4,324,612 | ||
Veolia Environnement S.A. | 469,262 | 14,795,276 | ||
$19,119,888 | ||||
Total Common Stocks (Identified Cost, $872,290,192) | $1,093,290,299 | |||
Investment Companies (h) – 1.3% | ||||
Money Market Funds – 1.3% | ||||
MFS Institutional Money Market Portfolio, 5.42% (v) (Identified Cost, $14,002,159) | 14,001,567 | $ 14,004,367 | ||
Other Assets, Less Liabilities – (0.4)% | (4,114,962) | |||
Net Assets – 100.0% | $1,103,179,704 |
(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 $14,004,367 and $1,093,290,299, respectively. | |||
(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: | |
REIT | Real Estate Investment Trust |
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: | |
CAD | Canadian Dollar |
EUR | Euro |
GBP | British Pound |
Derivative Contracts at 12/31/23 | ||||||
Forward Foreign Currency Exchange Contracts | ||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||
Asset Derivatives | ||||||
CAD | 2,520 | USD | 1,883 | UBS AG | 1/19/2024 | $19 |
EUR | 1,629,518 | USD | 1,770,683 | Morgan Stanley Capital Services, Inc. | 1/19/2024 | 29,344 |
EUR | 784 | USD | 858 | NatWest Markets PLC | 1/19/2024 | 8 |
EUR | 1,834,466 | USD | 2,004,543 | State Street Bank Corp. | 1/19/2024 | 21,878 |
GBP | 5,936 | USD | 7,548 | Brown Brothers Harriman | 1/19/2024 | 19 |
GBP | 1,656,508 | USD | 2,024,973 | Morgan Stanley Capital Services, Inc. | 1/19/2024 | 86,680 |
$137,948 | ||||||
Liability Derivatives | ||||||
USD | 792,888 | CAD | 1,087,560 | Morgan Stanley Capital Services, Inc. | 1/19/2024 | $(28,084) |
USD | 7,658,960 | CAD | 10,434,709 | State Street Bank Corp. | 1/19/2024 | (217,952) |
USD | 1,312,757 | EUR | 1,233,705 | HSBC Bank | 1/19/2024 | (50,040) |
USD | 11,034,184 | EUR | 10,244,549 | Morgan Stanley Capital Services, Inc. | 1/19/2024 | (282,335) |
USD | 119,286,780 | EUR | 112,068,036 | State Street Bank Corp. | 1/19/2024 | (4,507,837) |
USD | 2,649,697 | GBP | 2,110,147 | Brown Brothers Harriman | 1/19/2024 | (40,237) |
USD | 2,607,726 | GBP | 2,107,218 | HSBC Bank | 1/19/2024 | (78,473) |
USD | 29,096,848 | GBP | 23,862,877 | State Street Bank Corp. | 1/19/2024 | (1,322,619) |
$(6,527,577) |
Financial Statements | Statement of Assets and Liabilities |
At 12/31/23Assets | |
Investments in unaffiliated issuers, at value (identified cost, $872,290,192) | $1,093,290,299 |
Investments in affiliated issuers, at value (identified cost, $14,002,159) | 14,004,367 |
Receivables for | |
Forward foreign currency exchange contracts | 137,948 |
Fund shares sold | 322,801 |
Interest and dividends | 3,815,861 |
Other assets | 4,013 |
Total assets | $1,111,575,289 |
Liabilities | |
Payables for | |
Forward foreign currency exchange contracts | $6,527,577 |
Fund shares reacquired | 1,561,394 |
Payable to affiliates | |
Investment adviser | 88,636 |
Administrative services fee | 1,584 |
Shareholder servicing costs | 458 |
Distribution and/or service fees | 16,439 |
Payable for independent Trustees' compensation | 11 |
Accrued expenses and other liabilities | 199,486 |
Total liabilities | $8,395,585 |
Net assets | $1,103,179,704 |
Net assets consist of | |
Paid-in capital | $833,296,698 |
Total distributable earnings (loss) | 269,883,006 |
Net assets | $1,103,179,704 |
Shares of beneficial interest outstanding | 34,627,781 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $503,825,977 | 15,622,184 | $32.25 |
Service Class | 599,353,727 | 19,005,597 | 31.54 |
Financial Statements | Statement of Operations |
Year ended 12/31/23 | |
Net investment income (loss) | |
Income | |
Dividends | $37,545,537 |
Dividends from affiliated issuers | 479,977 |
Interest | 306,119 |
Other | 75,631 |
Income on securities loaned | 3,995 |
Foreign taxes withheld | (356,955) |
Total investment income | $38,054,304 |
Expenses | |
Management fee | $8,533,210 |
Distribution and/or service fees | 1,583,003 |
Shareholder servicing costs | 12,074 |
Administrative services fee | 175,923 |
Independent Trustees' compensation | 20,930 |
Custodian fee | 117,774 |
Shareholder communications | 17,532 |
Audit and tax fees | 70,899 |
Legal fees | 6,361 |
Miscellaneous | 229,690 |
Total expenses | $10,767,396 |
Reduction of expenses by investment adviser | (146,772) |
Net expenses | $10,620,624 |
Net investment income (loss) | $27,433,680 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $29,977,682 |
Affiliated issuers | 1,880 |
Forward foreign currency exchange contracts | (9,800,468) |
Foreign currency | (1,220,931) |
Net realized gain (loss) | $18,958,163 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $(83,754,776) |
Affiliated issuers | (604) |
Forward foreign currency exchange contracts | 7,673,749 |
Translation of assets and liabilities in foreign currencies | 49,490 |
Net unrealized gain (loss) | $(76,032,141) |
Net realized and unrealized gain (loss) | $(57,073,978) |
Change in net assets from operations | $(29,640,298) |
Financial Statements | Statements of Changes in Net Assets |
Year ended | ||
12/31/23 | 12/31/22 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $27,433,680 | $22,268,570 |
Net realized gain (loss) | 18,958,163 | 96,439,674 |
Net unrealized gain (loss) | (76,032,141) | (114,645,691) |
Change in net assets from operations | $(29,640,298) | $4,062,553 |
Total distributions to shareholders | $(101,554,945) | $(77,825,621) |
Change in net assets from fund share transactions | $(16,299,587) | $28,354,613 |
Total change in net assets | $(147,494,830) | $(45,408,455) |
Net assets | ||
At beginning of period | 1,250,674,534 | 1,296,082,989 |
At end of period | $1,103,179,704 | $1,250,674,534 |
Financial Statements | Financial Highlights |
Initial Class | Year ended | ||||
12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | |
Net asset value, beginning of period | $36.32 | $38.31 | $35.33 | $35.18 | $29.38 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.86 | $0.71 | $0.78 | $0.87 | $0.90 |
Net realized and unrealized gain (loss) | (1.75) | (0.32) | 4.11 | 0.99 | 6.37 |
Total from investment operations | $(0.89) | $0.39 | $4.89 | $1.86 | $7.27 |
Less distributions declared to shareholders | |||||
From net investment income | $(1.25) | $(0.92) | $(0.65) | $(0.84) | $(1.37) |
From net realized gain | (1.93) | (1.46) | (1.26) | (0.87) | (0.10) |
Total distributions declared to shareholders | $(3.18) | $(2.38) | $(1.91) | $(1.71) | $(1.47) |
Net asset value, end of period (x) | $32.25 | $36.32 | $38.31 | $35.33 | $35.18 |
Total return (%) (k)(r)(s)(x) | (2.11) | 0.76 | 14.09 | 5.90 | 25.07 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.80 | 0.78 | 0.79 | 0.80 | 0.79 |
Expenses after expense reductions | 0.79 | 0.77 | 0.77 | 0.79 | 0.78 |
Net investment income (loss) | 2.53 | 1.92 | 2.16 | 2.63 | 2.69 |
Portfolio turnover | 15 | 29 | 16 | 32 | 28 |
Net assets at end of period (000 omitted) | $503,826 | $549,238 | $584,216 | $537,240 | $556,301 |
Service Class | Year ended | ||||
12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | |
Net asset value, beginning of period | $35.57 | $37.58 | $34.69 | $34.56 | $28.86 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.76 | $0.60 | $0.68 | $0.77 | $0.80 |
Net realized and unrealized gain (loss) | (1.71) | (0.32) | 4.03 | 0.97 | 6.27 |
Total from investment operations | $(0.95) | $0.28 | $4.71 | $1.74 | $7.07 |
Less distributions declared to shareholders | |||||
From net investment income | $(1.15) | $(0.83) | $(0.56) | $(0.74) | $(1.27) |
From net realized gain | (1.93) | (1.46) | (1.26) | (0.87) | (0.10) |
Total distributions declared to shareholders | $(3.08) | $(2.29) | $(1.82) | $(1.61) | $(1.37) |
Net asset value, end of period (x) | $31.54 | $35.57 | $37.58 | $34.69 | $34.56 |
Total return (%) (k)(r)(s)(x) | (2.33) | 0.48 | 13.82 | 5.62 | 24.80 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 1.05 | 1.03 | 1.04 | 1.05 | 1.04 |
Expenses after expense reductions | 1.04 | 1.02 | 1.02 | 1.04 | 1.03 |
Net investment income (loss) | 2.28 | 1.66 | 1.91 | 2.38 | 2.44 |
Portfolio turnover | 15 | 29 | 16 | 32 | 28 |
Net assets at end of period (000 omitted) | $599,354 | $701,436 | $711,867 | $679,629 | $733,992 |
(d) | Per share data is based on average shares outstanding. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(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 |
Equity Securities | $1,093,290,299 | $— | $— | $1,093,290,299 |
Mutual Funds | 14,004,367 | — | — | 14,004,367 |
Total | $1,107,294,666 | $— | $— | $1,107,294,666 |
Other Financial Instruments | ||||
Forward Foreign Currency Exchange Contracts – Assets | $— | $137,948 | $— | $137,948 |
Forward Foreign Currency Exchange Contracts – Liabilities | — | (6,527,577) | — | (6,527,577) |
Fair Value | |||
Risk | Derivative Contracts | Asset Derivatives | Liability Derivatives |
Foreign Exchange | Forward Foreign Currency Exchange Contracts | $137,948 | $(6,527,577) |
Risk | Forward Foreign Currency Exchange Contracts |
Foreign Exchange | $(9,800,468) |
Risk | Forward Foreign Currency Exchange Contracts |
Foreign Exchange | $7,673,749 |
Year ended 12/31/23 | Year ended 12/31/22 | |
Ordinary income (including any short-term capital gains) | $38,810,049 | $42,430,357 |
Long-term capital gains | 62,744,896 | 35,395,264 |
Total distributions | $101,554,945 | $77,825,621 |
As of 12/31/23 | |
Cost of investments | $886,903,652 |
Gross appreciation | 269,798,845 |
Gross depreciation | (55,797,460) |
Net unrealized appreciation (depreciation) | $214,001,385 |
Undistributed ordinary income | 24,181,787 |
Undistributed long-term capital gain | 31,718,375 |
Other temporary differences | (18,541) |
Total distributable earnings (loss) | $269,883,006 |
Year ended 12/31/23 | Year ended 12/31/22 | ||
Initial Class | $46,111,772 | $34,761,572 | |
Service Class | 55,443,173 | 43,064,049 | |
Total | $101,554,945 | $77,825,621 |
Up to $1 billion | 0.75% |
In excess of $1 billion and up to $3 billion | 0.70% |
In excess of $3 billion | 0.65% |
Year ended 12/31/23 | Year ended 12/31/22 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 1,697,934 | $58,956,930 | 1,003,536 | $37,516,319 | |
Service Class | 1,232,587 | 41,110,574 | 2,874,003 | 106,408,790 | |
2,930,521 | $100,067,504 | 3,877,539 | $143,925,109 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | 1,483,648 | $46,111,772 | 917,434 | $34,761,572 | |
Service Class | 1,822,590 | 55,443,173 | 1,159,194 | 43,064,049 | |
3,306,238 | $101,554,945 | 2,076,628 | $77,825,621 |
Year ended 12/31/23 | Year ended 12/31/22 | ||||
Shares | Amount | Shares | Amount | ||
Shares reacquired | |||||
Initial Class | (2,681,537) | $(91,889,876) | (2,047,407) | $(75,308,977) | |
Service Class | (3,767,894) | (126,032,160) | (3,259,548) | (118,087,140) | |
(6,449,431) | $(217,922,036) | (5,306,955) | $(193,396,117) | ||
Net change | |||||
Initial Class | 500,045 | $13,178,826 | (126,437) | $(3,031,086) | |
Service Class | (712,717) | (29,478,413) | 773,649 | 31,385,699 | |
(212,672) | $(16,299,587) | 647,212 | $28,354,613 |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $15,431,494 | $176,746,218 | $178,174,621 | $1,880 | $(604) | $14,004,367 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $479,977 | $— |
February 14, 2024
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 TRUSTEE | ||||||||||
Michael W. Roberge (k) (age 57) | 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) | N/A | |||||
INDEPENDENT TRUSTEES | ||||||||||
John P. Kavanaugh (age 69) | Trustee and Chair of Trustees | January 2009 | 136 | Private investor | N/A | |||||
Steven E. Buller (age 72) | Trustee | February 2014 | 136 | Private investor | N/A | |||||
John A. Caroselli (age 69) | Trustee | March 2017 | 136 | Private investor; JC Global Advisors, LLC (management consulting), President (since 2015) | N/A | |||||
Maureen R. Goldfarb (age 68) | Trustee | January 2009 | 136 | Private investor | N/A | |||||
Peter D. Jones (age 68) | Trustee | January 2019 | 136 | Private investor | N/A | |||||
James W. Kilman, Jr. (age 62) | 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) | |||||
Clarence Otis, Jr. (age 67) | Trustee | March 2017 | 136 | Private investor | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director | |||||
Maryanne L. Roepke (age 67) | Trustee | May 2014 | 136 | Private investor | N/A | |||||
Laurie J. Thomsen (age 66) | 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 50) | Assistant Secretary and Assistant Clerk | July 2005 | 136 | Massachusetts Financial Services Company, Senior Vice President and Senior Managing Counsel | ||||
Kino Clark (k) (age 55) | Assistant Treasurer | January 2012 | 136 | Massachusetts Financial Services Company, Vice President |
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 | ||||
John W. Clark, Jr. (k) (age 56) | Assistant Treasurer | April 2017 | 136 | Massachusetts Financial Services Company, Vice President | ||||
David L. DiLorenzo (k) (age 55) | President | July 2005 | 136 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 56) | Secretary and Clerk | April 2017 | 136 | Massachusetts Financial Services Company, Executive Vice President and General Counsel | ||||
Brian E. Langenfeld (k) (age 50) | Assistant Secretary and Assistant Clerk | June 2006 | 136 | Massachusetts Financial Services Company, Vice President and Managing Counsel | ||||
Rosa E. Licea-Mailloux (k) (age 47) | 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) | ||||
Amanda S. Mooradian (k) (age 44) | Assistant Secretary and Assistant Clerk | September 2018 | 136 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 53) | Assistant Secretary and Assistant Clerk | July 2005 | 136 | Massachusetts Financial Services Company, Vice President and Managing Counsel | ||||
Kasey L. Phillips (k) (age 53) | Assistant Treasurer | September 2012 | 136 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 49) | Assistant Secretary and Assistant Clerk | October 2014 | 136 | Massachusetts Financial Services Company, Vice President and Senior Managing Counsel | ||||
William B. Wilson (k) (age 41) | Assistant Secretary and Assistant Clerk | October 2022 | 136 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
James O. Yost (k) (age 63) | 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 Congress Street, Suite 1 Boston, MA 02114-2016 |
Distributor | Independent Registered Public Accounting Firm |
MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618 | Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 |
Portfolio Manager(s) | |
Claud Davis J. Scott Walker |
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. |
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JPMorgan Chase & Co. | 4.5% |
Cigna Group | 2.9% |
Progressive Corp. | 2.8% |
ConocoPhillips | 2.7% |
Comcast Corp., “A” | 2.5% |
Marsh & McLennan Cos., Inc. | 2.4% |
McKesson Corp. | 2.3% |
Johnson & Johnson | 2.2% |
Northrop Grumman Corp. | 2.2% |
Aon PLC | 2.2% |
Financials | 25.1% |
Industrials | 16.6% |
Health Care | 14.6% |
Information Technology | 8.5% |
Consumer Staples | 7.8% |
Utilities | 7.6% |
Energy | 5.8% |
Consumer Discretionary | 3.5% |
Materials | 3.4% |
Communication Services | 3.3% |
Real Estate | 2.2% |
(g) | The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and S&P Global Market Intelligence Inc. (“S&P Global Market Intelligence”). GICS is a service mark of MSCI and S&P Global Market Intelligence and has been licensed for use by MFS. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS. |
(b) | Security is not a benchmark constituent. |
Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr |
Initial Class | 1/02/2002 | 7.93% | 11.34% | 8.52% |
Service Class | 1/02/2002 | 7.63% | 11.07% | 8.25% |
Russell 1000® Value Index (f) | 11.46% | 10.91% | 8.40% |
(f) | Source: FactSet Research Systems Inc. |
(h) | Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and/or Russell ratings or underlying data and no party may rely on any Russell Indexes and/or Russell ratings and/or underlying data contained in this document. No further distribution of Russell Data is permitted without Russell's express written consent. Russell does not promote, sponsor, or endorse the content of this document. |
July 1, 2023 through December 31, 2023
Share Class | Annualized Expense Ratio | Beginning Account Value 7/01/23 | Ending Account Value 12/31/23 | Expenses Paid During Period (p) 7/01/23-12/31/23 | |
Initial Class | Actual | 0.69% | $1,000.00 | $1,058.68 | $3.58 |
Hypothetical (h) | 0.69% | $1,000.00 | $1,021.73 | $3.52 | |
Service Class | Actual | 0.94% | $1,000.00 | $1,057.23 | $4.87 |
Hypothetical (h) | 0.94% | $1,000.00 | $1,020.47 | $4.79 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 98.4% | ||||
Aerospace & Defense – 7.4% | ||||
General Dynamics Corp. | 178,373 | $ 46,318,117 | ||
Honeywell International, Inc. | 206,499 | 43,304,905 | ||
Northrop Grumman Corp. | 115,531 | 54,084,683 | ||
RTX Corp. | 450,458 | 37,901,536 | ||
$181,609,241 | ||||
Alcoholic Beverages – 1.3% | ||||
Diageo PLC | 886,106 | $ 32,257,810 | ||
Brokerage & Asset Managers – 4.8% | ||||
BlackRock, Inc. | 34,895 | $ 28,327,761 | ||
Citigroup, Inc. | 618,819 | 31,832,049 | ||
KKR & Co., Inc. | 254,740 | 21,105,209 | ||
NASDAQ, Inc. | 627,989 | 36,511,281 | ||
$117,776,300 | ||||
Business Services – 3.1% | ||||
Accenture PLC, “A” | 145,205 | $ 50,953,887 | ||
Equifax, Inc. | 101,038 | 24,985,687 | ||
$75,939,574 | ||||
Cable TV – 3.3% | ||||
Charter Communications, Inc., “A” (a) | 48,366 | $ 18,798,897 | ||
Comcast Corp., “A” | 1,411,695 | 61,902,826 | ||
$80,701,723 | ||||
Chemicals – 0.7% | ||||
PPG Industries, Inc. | 113,760 | $ 17,012,808 | ||
Construction – 1.1% | ||||
Otis Worldwide Corp. | 92,110 | $ 8,241,082 | ||
Sherwin-Williams Co. | 58,334 | 18,194,374 | ||
$26,435,456 | ||||
Consumer Products – 2.1% | ||||
Kenvue, Inc. | 1,210,017 | $ 26,051,666 | ||
Kimberly-Clark Corp. | 143,903 | 17,485,654 | ||
Reckitt Benckiser Group PLC | 114,858 | 7,935,084 | ||
$51,472,404 | ||||
Electrical Equipment – 0.7% | ||||
Johnson Controls International PLC | 279,123 | $ 16,088,650 | ||
Electronics – 6.4% | ||||
Analog Devices, Inc. | 247,099 | $ 49,063,978 | ||
KLA Corp. | 73,091 | 42,487,798 | ||
NXP Semiconductors N.V. | 127,748 | 29,341,161 | ||
Texas Instruments, Inc. | 215,564 | 36,745,039 | ||
$157,637,976 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Energy - Independent – 5.1% | ||||
ConocoPhillips | 574,004 | $ 66,624,644 | ||
EOG Resources, Inc. | 181,671 | 21,973,107 | ||
Pioneer Natural Resources Co. | 161,744 | 36,372,991 | ||
$124,970,742 | ||||
Energy - Integrated – 0.7% | ||||
Chevron Corp. | 123,239 | $ 18,382,329 | ||
Food & Beverages – 3.0% | ||||
Archer Daniels Midland Co. | 90,155 | $ 6,510,994 | ||
Nestle S.A. | 325,041 | 37,684,737 | ||
PepsiCo, Inc. | 180,548 | 30,664,272 | ||
$74,860,003 | ||||
Gaming & Lodging – 1.5% | ||||
Marriott International, Inc., “A” | 158,849 | $ 35,822,038 | ||
Health Maintenance Organizations – 3.4% | ||||
Cigna Group | 233,864 | $ 70,030,575 | ||
Elevance Health, Inc. | 30,187 | 14,234,981 | ||
$84,265,556 | ||||
Insurance – 10.9% | ||||
Aon PLC | 181,604 | $ 52,850,396 | ||
Chubb Ltd. | 203,535 | 45,998,910 | ||
Marsh & McLennan Cos., Inc. | 314,390 | 59,567,473 | ||
Progressive Corp. | 430,489 | 68,568,288 | ||
Travelers Cos., Inc. | 209,085 | 39,828,602 | ||
$266,813,669 | ||||
Machinery & Tools – 4.4% | ||||
Eaton Corp. PLC | 146,805 | $ 35,353,580 | ||
Illinois Tool Works, Inc. | 132,612 | 34,736,387 | ||
PACCAR, Inc. | 167,489 | 16,355,301 | ||
Trane Technologies PLC | 83,141 | 20,278,090 | ||
Veralto Corp. | 15,282 | 1,257,097 | ||
$107,980,455 | ||||
Major Banks – 7.6% | ||||
JPMorgan Chase & Co. | 644,386 | $ 109,610,059 | ||
Morgan Stanley | 518,756 | 48,373,997 | ||
PNC Financial Services Group, Inc. | 177,843 | 27,538,988 | ||
$185,523,044 | ||||
Medical & Health Technology & Services – 2.3% | ||||
McKesson Corp. | 120,119 | $ 55,612,695 | ||
Medical Equipment – 2.3% | ||||
Abbott Laboratories | 230,956 | $ 25,421,327 | ||
Boston Scientific Corp. (a) | 293,669 | 16,977,005 | ||
Medtronic PLC | 161,942 | 13,340,782 | ||
$55,739,114 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Other Banks & Diversified Financials – 1.9% | ||||
American Express Co. | 243,981 | $ 45,707,400 | ||
Pharmaceuticals – 6.6% | ||||
AbbVie, Inc. | 186,214 | $ 28,857,584 | ||
Johnson & Johnson | 350,185 | 54,887,997 | ||
Merck & Co., Inc. | 295,552 | 32,221,079 | ||
Pfizer, Inc. | 1,380,602 | 39,747,531 | ||
Roche Holding AG | 26,196 | 7,615,388 | ||
$163,329,579 | ||||
Railroad & Shipping – 2.7% | ||||
Canadian National Railway Co. | 116,238 | $ 14,602,980 | ||
Union Pacific Corp. | 214,694 | 52,733,140 | ||
$67,336,120 | ||||
Real Estate – 2.2% | ||||
Prologis, Inc., REIT | 345,084 | $ 45,999,697 | ||
Public Storage, Inc., REIT | 29,973 | 9,141,765 | ||
$55,141,462 | ||||
Specialty Chemicals – 1.9% | ||||
Corteva, Inc. | 256,145 | $ 12,274,468 | ||
DuPont de Nemours, Inc. | 461,459 | 35,500,041 | ||
$47,774,509 | ||||
Specialty Stores – 3.4% | ||||
Lowe's Cos., Inc. | 228,795 | $ 50,918,327 | ||
Target Corp. | 233,170 | 33,208,072 | ||
$84,126,399 | ||||
Utilities - Electric Power – 7.6% | ||||
American Electric Power Co., Inc. | 142,262 | $ 11,554,520 | ||
Dominion Energy, Inc. | 620,893 | 29,181,971 | ||
Duke Energy Corp. | 454,375 | 44,092,550 | ||
Exelon Corp. | 497,392 | 17,856,373 | ||
PG&E Corp. | 1,045,883 | 18,857,271 | ||
Southern Co. | 622,087 | 43,620,740 | ||
Xcel Energy, Inc. | 330,807 | 20,480,261 | ||
$185,643,686 | ||||
Total Common Stocks (Identified Cost, $1,320,399,349) | $2,415,960,742 | |||
Investment Companies (h) – 0.4% | ||||
Money Market Funds – 0.4% | ||||
MFS Institutional Money Market Portfolio, 5.42% (v) (Identified Cost, $8,423,770) | 8,423,433 | $ 8,425,117 | ||
Other Assets, Less Liabilities – 1.2% | 29,826,917 | |||
Net Assets – 100.0% | $2,454,212,776 |
(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 $8,425,117 and $2,415,960,742, respectively. | |||
(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: | |
REIT | Real Estate Investment Trust |
Financial Statements | Statement of Assets and Liabilities |
At 12/31/23Assets | |
Investments in unaffiliated issuers, at value (identified cost, $1,320,399,349) | $2,415,960,742 |
Investments in affiliated issuers, at value (identified cost, $8,423,770) | 8,425,117 |
Cash | 132,108 |
Receivables for | |
Investments sold | 23,475,002 |
Fund shares sold | 5,909,225 |
Interest and dividends | 2,720,740 |
Other assets | 8,160 |
Total assets | $2,456,631,094 |
Liabilities | |
Payables for | |
Fund shares reacquired | $2,044,127 |
Payable to affiliates | |
Investment adviser | 160,989 |
Administrative services fee | 3,366 |
Shareholder servicing costs | 337 |
Distribution and/or service fees | 33,117 |
Payable for independent Trustees' compensation | 13 |
Accrued expenses and other liabilities | 176,369 |
Total liabilities | $2,418,318 |
Net assets | $2,454,212,776 |
Net assets consist of | |
Paid-in capital | $1,141,152,166 |
Total distributable earnings (loss) | 1,313,060,610 |
Net assets | $2,454,212,776 |
Shares of beneficial interest outstanding | 116,904,443 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $1,246,269,332 | 58,592,120 | $21.27 |
Service Class | 1,207,943,444 | 58,312,323 | 20.72 |
Financial Statements | Statement of Operations |
Year ended 12/31/23 | |
Net investment income (loss) | |
Income | |
Dividends | $57,443,041 |
Dividends from affiliated issuers | 1,006,489 |
Income on securities loaned | 84,510 |
Other | 22,583 |
Foreign taxes withheld | (328,374) |
Total investment income | $58,228,249 |
Expenses | |
Management fee | $16,623,624 |
Distribution and/or service fees | 2,975,794 |
Shareholder servicing costs | 13,495 |
Administrative services fee | 356,959 |
Independent Trustees' compensation | 41,330 |
Custodian fee | 84,891 |
Shareholder communications | 28,730 |
Audit and tax fees | 69,098 |
Legal fees | 13,250 |
Miscellaneous | 51,876 |
Total expenses | $20,259,047 |
Reduction of expenses by investment adviser | (672,280) |
Net expenses | $19,586,767 |
Net investment income (loss) | $38,641,482 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $185,225,580 |
Affiliated issuers | (11,246) |
Foreign currency | 47,201 |
Net realized gain (loss) | $185,261,535 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $(45,384,172) |
Affiliated issuers | (1,718) |
Translation of assets and liabilities in foreign currencies | 27,546 |
Net unrealized gain (loss) | $(45,358,344) |
Net realized and unrealized gain (loss) | $139,903,191 |
Change in net assets from operations | $178,544,673 |
Financial Statements | Statements of Changes in Net Assets |
Year ended | ||
12/31/23 | 12/31/22 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $38,641,482 | $37,120,192 |
Net realized gain (loss) | 185,261,535 | 168,424,957 |
Net unrealized gain (loss) | (45,358,344) | (384,367,410) |
Change in net assets from operations | $178,544,673 | $(178,822,261) |
Total distributions to shareholders | $(206,485,454) | $(183,745,122) |
Change in net assets from fund share transactions | $35,588,362 | $(23,553,592) |
Total change in net assets | $7,647,581 | $(386,120,975) |
Net assets | ||
At beginning of period | 2,446,565,195 | 2,832,686,170 |
At end of period | $2,454,212,776 | $2,446,565,195 |
Financial Statements | Financial Highlights |
Initial Class | Year ended | ||||
12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | |
Net asset value, beginning of period | $21.55 | $24.72 | $20.40 | $20.95 | $17.30 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.36 | $0.35 | $0.31 | $0.31 | $0.33 |
Net realized and unrealized gain (loss) | 1.22 | (1.83) | 4.84 | 0.29 | 4.68 |
Total from investment operations | $1.58 | $(1.48) | $5.15 | $0.60 | $5.01 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.36) | $(0.32) | $(0.31) | $(0.30) | $(0.44) |
From net realized gain | (1.50) | (1.37) | (0.52) | (0.85) | (0.92) |
Total distributions declared to shareholders | $(1.86) | $(1.69) | $(0.83) | $(1.15) | $(1.36) |
Net asset value, end of period (x) | $21.27 | $21.55 | $24.72 | $20.40 | $20.95 |
Total return (%) (k)(r)(s)(x) | 7.93 | (5.91) | 25.45 | 3.48 | 29.80 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.72 | 0.72 | 0.72 | 0.73 | 0.73 |
Expenses after expense reductions | 0.69 | 0.70 | 0.70 | 0.71 | 0.72 |
Net investment income (loss) | 1.73 | 1.60 | 1.33 | 1.64 | 1.67 |
Portfolio turnover | 16 | 13 | 9 | 17 | 13 |
Net assets at end of period (000 omitted) | $1,246,269 | $1,207,158 | $1,363,583 | $1,183,318 | $945,183 |
Service Class | Year ended | ||||
12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | |
Net asset value, beginning of period | $21.03 | $24.16 | $19.96 | $20.52 | $16.96 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.30 | $0.29 | $0.24 | $0.25 | $0.27 |
Net realized and unrealized gain (loss) | 1.19 | (1.79) | 4.75 | 0.29 | 4.59 |
Total from investment operations | $1.49 | $(1.50) | $4.99 | $0.54 | $4.86 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.30) | $(0.26) | $(0.27) | $(0.25) | $(0.38) |
From net realized gain | (1.50) | (1.37) | (0.52) | (0.85) | (0.92) |
Total distributions declared to shareholders | $(1.80) | $(1.63) | $(0.79) | $(1.10) | $(1.30) |
Net asset value, end of period (x) | $20.72 | $21.03 | $24.16 | $19.96 | $20.52 |
Total return (%) (k)(r)(s)(x) | 7.69 | (6.14) | 25.16 | 3.22 | 29.51 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses before expense reductions | 0.97 | 0.97 | 0.97 | 0.98 | 0.98 |
Expenses after expense reductions | 0.94 | 0.95 | 0.95 | 0.96 | 0.97 |
Net investment income (loss) | 1.48 | 1.35 | 1.08 | 1.38 | 1.42 |
Portfolio turnover | 16 | 13 | 9 | 17 | 13 |
Net assets at end of period (000 omitted) | $1,207,943 | $1,239,407 | $1,469,104 | $1,267,251 | $1,279,123 |
(d) | Per share data is based on average shares outstanding. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(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 |
Equity Securities | $2,415,960,742 | $— | $— | $2,415,960,742 |
Mutual Funds | 8,425,117 | — | — | 8,425,117 |
Total | $2,424,385,859 | $— | $— | $2,424,385,859 |
Year ended 12/31/23 | Year ended 12/31/22 | |
Ordinary income (including any short-term capital gains) | $37,786,809 | $43,571,664 |
Long-term capital gains | 168,698,645 | 140,173,458 |
Total distributions | $206,485,454 | $183,745,122 |
As of 12/31/23 | |
Cost of investments | $1,338,717,702 |
Gross appreciation | 1,124,833,688 |
Gross depreciation | (39,165,531) |
Net unrealized appreciation (depreciation) | $1,085,668,157 |
Undistributed ordinary income | 39,125,440 |
Undistributed long-term capital gain | 188,223,272 |
Other temporary differences | 43,741 |
Total distributable earnings (loss) | $1,313,060,610 |
Year ended 12/31/23 | Year ended 12/31/22 | ||
Initial Class | $105,947,750 | $91,353,058 | |
Service Class | 100,537,704 | 92,392,064 | |
Total | $206,485,454 | $183,745,122 |
Up to $1 billion | 0.75% |
In excess of $1 billion and up to $2.5 billion | 0.65% |
In excess of $2.5 billion | 0.60% |
Year ended 12/31/23 | Year ended 12/31/22 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 7,468,912 | $159,547,620 | 6,563,655 | $146,371,031 | |
Service Class | 5,808,561 | 120,426,998 | 24,366,893 | 539,149,730 | |
13,277,473 | $279,974,618 | 30,930,548 | $685,520,761 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | 5,329,364 | $105,947,750 | 4,288,876 | $91,353,058 | |
Service Class | 5,187,704 | 100,537,704 | 4,439,792 | 92,392,064 | |
10,517,068 | $206,485,454 | 8,728,668 | $183,745,122 | ||
Shares reacquired | |||||
Initial Class | (10,223,245) | $(211,616,295) | (9,999,661) | $(220,090,375) | |
Service Class | (11,621,721) | (239,255,415) | (30,676,378) | (672,729,100) | |
(21,844,966) | $(450,871,710) | (40,676,039) | $(892,819,475) | ||
Net change | |||||
Initial Class | 2,575,031 | $53,879,075 | 852,870 | $17,633,714 | |
Service Class | (625,456) | (18,290,713) | (1,869,693) | (41,187,306) | |
1,949,575 | $35,588,362 | (1,016,823) | $(23,553,592) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $29,657,201 | $334,673,070 | $355,892,190 | $(11,246) | $(1,718) | $8,425,117 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $1,006,489 | $— |
February 14, 2024
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 TRUSTEE | ||||||||||
Michael W. Roberge (k) (age 57) | 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) | N/A | |||||
INDEPENDENT TRUSTEES | ||||||||||
John P. Kavanaugh (age 69) | Trustee and Chair of Trustees | January 2009 | 136 | Private investor | N/A | |||||
Steven E. Buller (age 72) | Trustee | February 2014 | 136 | Private investor | N/A | |||||
John A. Caroselli (age 69) | Trustee | March 2017 | 136 | Private investor; JC Global Advisors, LLC (management consulting), President (since 2015) | N/A | |||||
Maureen R. Goldfarb (age 68) | Trustee | January 2009 | 136 | Private investor | N/A | |||||
Peter D. Jones (age 68) | Trustee | January 2019 | 136 | Private investor | N/A | |||||
James W. Kilman, Jr. (age 62) | 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) | |||||
Clarence Otis, Jr. (age 67) | Trustee | March 2017 | 136 | Private investor | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director | |||||
Maryanne L. Roepke (age 67) | Trustee | May 2014 | 136 | Private investor | N/A | |||||
Laurie J. Thomsen (age 66) | 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 50) | Assistant Secretary and Assistant Clerk | July 2005 | 136 | Massachusetts Financial Services Company, Senior Vice President and Senior Managing Counsel | ||||
Kino Clark (k) (age 55) | Assistant Treasurer | January 2012 | 136 | Massachusetts Financial Services Company, Vice President |
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 | ||||
John W. Clark, Jr. (k) (age 56) | Assistant Treasurer | April 2017 | 136 | Massachusetts Financial Services Company, Vice President | ||||
David L. DiLorenzo (k) (age 55) | President | July 2005 | 136 | Massachusetts Financial Services Company, Senior Vice President | ||||
Heidi W. Hardin (k) (age 56) | Secretary and Clerk | April 2017 | 136 | Massachusetts Financial Services Company, Executive Vice President and General Counsel | ||||
Brian E. Langenfeld (k) (age 50) | Assistant Secretary and Assistant Clerk | June 2006 | 136 | Massachusetts Financial Services Company, Vice President and Managing Counsel | ||||
Rosa E. Licea-Mailloux (k) (age 47) | 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) | ||||
Amanda S. Mooradian (k) (age 44) | Assistant Secretary and Assistant Clerk | September 2018 | 136 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
Susan A. Pereira (k) (age 53) | Assistant Secretary and Assistant Clerk | July 2005 | 136 | Massachusetts Financial Services Company, Vice President and Managing Counsel | ||||
Kasey L. Phillips (k) (age 53) | Assistant Treasurer | September 2012 | 136 | Massachusetts Financial Services Company, Vice President | ||||
Matthew A. Stowe (k) (age 49) | Assistant Secretary and Assistant Clerk | October 2014 | 136 | Massachusetts Financial Services Company, Vice President and Senior Managing Counsel | ||||
William B. Wilson (k) (age 41) | Assistant Secretary and Assistant Clerk | October 2022 | 136 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel | ||||
James O. Yost (k) (age 63) | 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 Congress Street, Suite 1 Boston, MA 02114-2016 |
Distributor | Independent Registered Public Accounting Firm |
MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618 | Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 |
Portfolio Manager(s) | |
Katherine Cannan Nevin Chitkara |
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 and Clarence Otis, Jr., 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 and Otis 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 Deloitte & Touche LLP ("Deloitte") to serve as independent accountants to the Registrant (hereinafter the "Registrant" or the "Fund"). The tables below set forth the audit fees billed to 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 December 31, 2023 and 2022, audit fees billed to the Fund by Deloitte were as follows:
Fees billed by Deloitte: |
| Audit Fees | |
| 2023 |
| 2022 |
MFS Global Equity Series | 55,676 |
| 51,335 |
MFS Growth Series | 56,668 |
| 52,252 |
MFS Investors Trust Series | 55,676 |
| 51,335 |
MFS Mid Cap Growth Series | 55,676 |
| 51,335 |
MFS New Discovery Series | 55,676 |
| 51,335 |
MFS Research Series | 56,793 |
| 52,368 |
MFS Total Return Bond Series | 79,577 |
| 73,425 |
MFS Total Return Series | 72,327 |
| 72,327 |
MFS Utilities Series | 55,802 |
| 51,452 |
MFS Value Series | 56,668 |
| 52,252 |
Total | 600,539 |
| 559,416 |
For the fiscal years ended December 31, 2023 and 2022, fees billed by Deloitte for audit-related, tax and other services provided to each Fund and for audit-related, tax and other services provided to MFS and MFS Related Entities were as follows:
Fees billed by Deloitte: | Audit-Related Fees1 |
| Tax Fees2 |
| All Other Fees3 | ||||||
| 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||
To MFS Global Equity Series | 2,400 | 2,400 | 0 | 0 | 0 | 0 | |||||
|
|
|
|
|
|
|
|
|
|
|
|
To MFS Growth Series | 2,400 | 2,400 | 0 | 0 | 0 | 0 | |||||
|
|
|
|
|
|
|
|
|
|
|
|
To MFS Investors Trust Series | 2,400 | 2,400 | 0 | 0 | 0 | 0 | |||||
|
|
|
|
|
|
|
|
|
|
|
|
To MFS Mid Cap Growth | 2,400 | 2,400 | 0 | 0 | 0 | 0 | |||||
Series |
|
|
|
|
|
|
|
|
|
|
|
To MFS New Discovery Series | 2,400 | 2,400 | 0 | 0 | 0 | 0 | |||||
|
|
|
|
|
|
|
|
|
|
|
|
To MFS Research Series | 2,400 | 2,400 | 0 | 0 | 0 | 0 | |||||
|
|
|
|
|
|
|
|
|
|
|
|
To MFS Total Return Bond | 2,400 | 2,400 | 0 | 0 | 0 | 0 | |||||
Series |
|
|
|
|
|
|
|
|
|
|
|
To MFS Total Return Series | 2,400 | 2,400 | 0 | 0 | 0 | 0 | |||||
|
|
|
|
|
|
|
|
|
|
|
|
To MFS Utilities Series | 2,400 | 2,400 | 0 | 0 | 0 | 0 | |||||
|
|
|
|
|
|
|
|
|
|
|
|
To MFS Value Series | 2,400 | 2,400 | 0 | 0 | 0 | 0 | |||||
|
|
|
|
|
|
|
|
|
|
|
|
Total fees billed by |
|
|
|
|
|
|
|
|
|
|
|
Deloitte to above Funds: | 24,000 | 24,000 | 0 | 0 | 0 | 0 | |||||
|
|
|
|
|
|
|
|
| |||
Fees billed by Deloitte: | Audit-Related Fees1 |
| Tax Fees2 |
| All Other Fees3 | ||||||
| 2023 |
| 2022 |
| 2023 |
| 2022 |
| 2023 |
| 2022 |
To MFS and MFS Related | 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| 3,790 |
Entities of MFS Global Equity |
|
|
|
|
|
|
|
|
|
|
|
Series* |
|
|
|
|
|
|
|
|
|
|
|
To MFS and MFS Related | 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| 3,790 |
Entities of MFS Growth Series* |
|
|
|
|
|
|
|
|
|
|
|
To MFS and MFS Related | 0 |
| 0 |
| 0 |
| 0 |
| 0 |
| 3,790 |
Entities of MFS Investors Trust |
|
|
|
|
|
|
|
|
|
|
|
Series* |
|
|
|
|
|
|
|
|
|
|
|
To MFS and MFS Related | 0 |
| 0 | 0 |
| 0 | 0 |
| 3,790 | ||
Entities of MFS Mid Cap |
|
|
|
|
|
|
|
|
|
|
|
Growth Series* |
|
|
|
|
|
|
|
|
|
|
|
To MFS and MFS Related | 0 |
| 0 | 0 |
| 0 | 0 |
| 3,790 | ||
Entities of MFS New Discovery |
|
|
|
|
|
|
|
|
|
|
|
Series* |
|
|
|
|
|
|
|
|
|
|
|
To MFS and MFS Related | 0 |
| 0 | 0 |
| 0 | 0 |
| 3,790 | ||
Entities of MFS Research |
|
|
|
|
|
|
|
|
|
|
|
Series* |
|
|
|
|
|
|
|
|
|
|
|
To MFS and MFS Related | 0 |
| 0 | 0 |
| 0 | 0 |
| 3,790 | ||
Entities of MFS Total Return |
|
|
|
|
|
|
|
|
|
|
|
Bond Series* |
|
|
|
|
|
|
|
|
|
|
|
To MFS and MFS Related | 0 |
| 0 | 0 |
| 0 | 0 |
| 3,790 | ||
Entities of MFS Total Return |
|
|
|
|
|
|
|
|
|
|
|
Series* |
|
|
|
|
|
|
|
|
|
|
|
To MFS and MFS Related | 0 |
| 0 | 0 |
| 0 | 0 |
| 3,790 | ||
Entities of MFS Utilities |
|
|
|
|
|
|
|
|
|
|
|
Series* |
|
|
|
|
|
|
|
|
|
|
|
To MFS and MFS Related | 0 |
| 0 | 0 |
| 0 | 0 |
| 3,790 | ||
Entities of MFS Value |
|
|
|
|
|
|
|
|
|
|
|
Series* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Fees billed by Deloitte: |
|
|
|
| Aggregate fees for non-audit services: | ||||||
|
|
|
|
| 2023 |
|
|
| 2022 | ||
To MFS Global Equity Series, MFS and MFS Related |
|
|
|
|
|
|
|
|
| ||
Entities# |
|
|
|
| 2,400 |
|
|
| 6,190 | ||
To MFS Growth Series, MFS and MFS Related Entities# |
| 2,400 |
|
|
| 6,190 | |||||
To MFS Investors Trust Series, MFS and MFS Related |
|
|
|
|
|
|
|
| |||
Entities# |
|
|
|
| 2,400 |
|
|
| 6,190 | ||
To MFS Mid Cap Growth Series, MFS and MFS Related |
|
|
|
|
|
|
|
| |||
Entities# |
|
|
|
| 2,400 |
|
|
| 6,190 | ||
To MFS New Discovery Series, MFS and MFS Related |
|
|
|
|
|
|
|
| |||
Entities# |
|
|
|
| 2,400 |
|
|
| 6,190 | ||
To MFS Research Series, MFS and MFS Related Entities# |
| 2,400 |
|
|
| 6,190 | |||||
To MFS Total Return Bond Series, MFS and MFS Related |
|
|
|
|
|
|
|
| |||
Entities# |
|
|
|
| 2,400 |
|
|
| 6,190 | ||
To MFS Total Return Series, MFS and MFS Related |
|
|
|
|
|
|
|
|
| ||
Entities# |
|
|
|
| 2,400 |
|
|
| 6,190 | ||
To MFS Utilities Series, MFS and MFS Related Entities# |
| 2,400 |
|
|
| 6,190 | |||||
To MFS Value Series, MFS and MFS Related Entities# |
| 2,400 |
|
|
| 6,190 |
*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 Deloitte 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 Deloitte other than those reported under "Audit Fees," "Audit-Related Fees" and "Tax Fees".
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 Fund 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 between such 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 were provided prior to the effectiveness of SEC rules requiring pre-approval or 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 4(i):
Not applicable.
Item 4(j):
Not applicable.
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. RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION.
Not Applicable.
ITEM 14. 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 VARIABLE INSURANCE TRUST
By (Signature and Title)*
/S/ DAVID L. DILORENZO
David L. DiLorenzo, President
Date: February 14, 2024
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: February 14, 2024
By (Signature and Title)*
/S/ JAMES O. YOST
James O. Yost, Treasurer (Principal Financial Officer and Accounting Officer) Date: February 14, 2024
* Print name and title of each signing officer under his or her signature.